COMMERCIAL NET LEASE REALTY INC
CREDIT AGREEMENT
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<TITLE>SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT</TITLE>
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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT<BR><BR>
        Dated as of May 9, 2003<BR><BR>
        by and among<BR><BR>
        COMMERCIAL NET LEASE REALTY, INC.,<BR></FONT></P></TD></TR>

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        <TD><P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        as Borrower<BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        WACHOVIA SECURITIES, INC.<BR></FONT></P></TD></TR>

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        <TD></TD>
        <TD><P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        as Sole Lead Arranger<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and<BR>Book Manager,<BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        WACHOVIA BANK, NATIONAL ASSOCIATION,<BR></FONT></P></TD></TR>

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        <TD><P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        as Administrative Agent,<BR><BR></FONT></P></TD></TR>


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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        WELLS FARGO BANK, NATIONAL ASSOCIATION,<BR></FONT></P></TD></TR>

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        <TD><P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        as Syndication Agent,<BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        AMSOUTH BANK<BR><BR>and<BR><BR>SUNTRUST BANK,<BR></FONT></P></TD></TR>

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        <TD></TD>
        <TD><P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        each as Co-Documentation Agent,<BR><BR></FONT></P></TD></TR>

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        THE  FINANCIAL  INSTITUTIONS  PARTY  HERETO<BR>AND  THEIR  ASSIGNEES  UNDER  SECTION  12.5.,
        <BR></FONT></P></TD></TR>

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        <TD><P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        as Lenders<BR><BR></FONT></P></TD></TR>


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        TABLE OF CONTENTS<BR><BR></FONT></P></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article I.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitions</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitions.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>General; References to Times.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article II.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Credit Facility</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revolving Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bid Rate Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Swingline Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Letters of Credit.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29</FONT></TD></TR>


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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rates and Payment of Interest on Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Number of Interest Periods.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Repayment of Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Prepayments.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.9.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Continuation.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.10.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conversion.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35</FONT></TD></TR>


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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.11.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notes.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.12.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Extension of Termination Date.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD></TR>


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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.13.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Expiration or Maturity Date of Letters of Credit Past Termination Date.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.14.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Voluntary Reductions of the Commitment.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.15.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Increase of Commitments.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2.16.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount Limitations.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article III.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Payments, Fees and Other General Provisions</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payments.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pro Rata Treatment.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39</FONT></TD></TR>


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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sharing of Payments, Etc.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Several Obligations.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.5</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Minimum Amounts.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fees.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40</FONT></TD></TR>


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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Computations.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Usury.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41</FONT></TD></TR>


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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.9.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Agreement Regarding Interest and Charges.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.10.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Statements of Account.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></TD></TR>


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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.11.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Defaulting Lenders.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3.12.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article IV.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Yield Protection, Etc.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional Costs; Capital Adequacy.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Suspension of LIBOR Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Illegality.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compensation.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Affected Lenders.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Treatment of Affected Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48</FONT></TD></TR>

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        <TD ALIGN=CENTER COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
                -i-</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Change of Lending Office.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assumptions Concerning Funding of LIBOR Loans.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article V.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conditions Precedent</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Initial Conditions Precedent.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Conditions Precedent to All Loans and Letters of Credit.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conditions as Covenants.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article VI.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Representations and Warranties</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 6.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Representations and Warranties.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 6.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Survival of Representations and Warranties, Etc.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58</FONT></TD></TR>

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        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article VII.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Affirmative Covenants</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59</FONT></TD></TR>

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        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preservation of Existence and Similar Matters.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compliance with Applicable Law.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Maintenance of Property.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Insurance.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment of Taxes and Claims.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Visits and Inspections.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60</FONT></TD></TR>


<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Use of Proceeds; Letters of Credit.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Environmental Matters.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61</FONT></TD></TR>


<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.9.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Books and Records.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.10.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Further Assurances.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61</FONT></TD></TR>


<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.11.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>New Subsidiaries/Guarantors.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.12.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REIT Status.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62</FONT></TD></TR>


<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7.13.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exchange Listing.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article VIII.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Information</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Quarterly Financial Statements.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year-End Statements.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>63</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compliance Certificate; Additional Information.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>63</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other Information.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>63</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article IX.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Negative Covenants</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>65</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial Covenants.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>65</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restricted Payments.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>66</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Debt.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>67</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certain Permitted Investments.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>67</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conduct of Business.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>68</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liens: Negative Pledges; Other Matters.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>68</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Merger, Consolidation, Sales of Assets and Other Arrangements.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>68</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fiscal Year.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>69</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.9.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Modifications of Organizational Documents.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>69</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.10.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Transactions with Affiliates.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>69</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.11.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ERISA Exemptions.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>69</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9.12.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ownership of CNLRS.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>69</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD ALIGN=CENTER COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
                -ii-</FONT></TD></TR>

</TABLE>
<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--5 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=12%></TD>
        <TD WIDTH=12%></TD>
        <TD WIDTH=66%></TD>
        <TD WIDTH=5%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article X.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Default</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Events of Default.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Remedies Upon Event of Default.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>73</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Remedies Upon Default.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>74</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Allocation of Proceeds.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>74</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Collateral Account.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>75</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Performance by Agent.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rights Cumulative.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article XI.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Agent</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Authorization and Action.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Agent's Reliance, Etc.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>77</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notice of Defaults.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>78</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wachovia as Lender.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>78</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Approvals of Lenders.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>78</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Lender Credit Decision, Etc.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>79</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indemnification of Agent.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>79</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Successor Agent.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>80</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11.9.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Titled Agents.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>81</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD>&nbsp;</TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article XII.</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Miscellaneous</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>81</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.1.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>81</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.2.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expenses.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>82</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.3.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Setoff.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>83</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.4.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Litigation; Jurisdiction;
        Other Matters; Waivers.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>83</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.5.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Successors and Assigns.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>84</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.6.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amendments.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.7.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nonliability of Agent and Lenders.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>88</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.8.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Confidentiality.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>88</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.9.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indemnification.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>89</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.10.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Termination; Survival.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>91</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.11.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Severability of Provisions.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>91</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.12.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GOVERNING LAW.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.13.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Counterparts.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.14.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Obligations with Respect to Loan Parties.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.15.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Limitation of Liability.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.16.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Entire Agreement.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.17.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Construction.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>92</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD COLSPAN=2></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12.18.</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NO NOVATION.</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>93</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 1.1(A)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Existing Letters of Credit</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 1.1(B)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>List of Loan Parties</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 6.1.(b)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ownership Structure</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 6.1.(f)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title to Properties; Liens</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 6.1.(g)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Existing Debt</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD ALIGN=CENTER COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
                -iii-</FONT></TD></TR>

</TABLE>
<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--5 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=12%></TD>
        <TD WIDTH=12%></TD>
        <TD WIDTH=66%></TD>
        <TD WIDTH=5%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 6.1.(h)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Litigation</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 6.1.(x)</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unencumbered Assets</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Assignment and Acceptance Agreement</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT B</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Designation Agreement</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT C</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Notice of Borrowing</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT D</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Notice of Continuation</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT E</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Notice  of Conversion</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT F</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Notice of Swingline Borrowing</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT G</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Swingline Note</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT H</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Bid Rate Quote Request</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT I</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Bid Rate Quote</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT J</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Bid Rate Quote Acceptance</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT K</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Revolving Note</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT L</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Bid Rate Note</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT M</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Opinion of Counsel</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT N</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Compliance Certificate</FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT O</FONT></TD>
        <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                Form of Guaranty</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->


<TR VALIGN=BOTTOM><TD></TD>
        <TD ALIGN=CENTER COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
                -iv-</FONT></TD></TR>

</TABLE>
<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;   THIS   SEVENTH   AMENDED  AND
        RESTATED CREDIT AGREEMENT (this  &#147;Agreement&#148;)  dated as of May&#160;9, 2003 by and
        among COMMERCIAL NET LEASE REALTY, INC., a corporation formed under the laws of the State of
        Maryland (the  &#147;Borrower&#148;),  WACHOVIA SECURITIES,  INC., as Sole Lead Arranger and
        Book Manager (the  &#147;Arranger&#148;),  WACHOVIA BANK,  NATIONAL  ASSOCIATION,  as Agent,
        WELLS  FARGO  BANK,  NATIONAL  ASSOCIATION,  as  Syndication  Agent  (the  &#147;Syndication
        Agent&#148;),  each of  AMSOUTH  BANK and  SUNTRUST  BANK,  as  Co-Documentation  Agent (the
        &#147;Co-Documentation  Agents&#148;),  and each of the financial  institutions  initially a
        signatory hereto together with their assignees pursuant to Section&#160;12.5.(d). <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,  certain of the Lenders
        and other financial  institutions  have made available to Borrower a $200,000,000  revolving
        credit  facility,  on the terms and  conditions  contained in that certain Sixth Amended and
        Restated  Credit  Agreement  dated as of  October&#160;26,  2000 (as  amended  and in effect
        immediately prior to the date hereof,  the  &#147;Existing  Credit  Agreement&#148;)  by and
        among the Borrower, such Lenders,  certain other financial  institutions,  the Agent and the
        other parties thereto;<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,   the   Agent  and  the
        Lenders  desire to amend and  restate the terms of the  Existing  Credit  Agreement  to make
        available to the Borrower a revolving credit facility in the initial amount of $225,000,000,
        which will include a $30,000,000  letter of credit  subfacility and a $10,000,000  swingline
        subfacility, on the terms and conditions contained herein. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,  THEREFORE,  for  good  and
        valuable consideration,  the receipt and sufficiency of which are hereby acknowledged by the
        parties hereto,  the parties hereto agree that the Existing Credit  Agreement is amended and
        restated in its entirety as follows: </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        <B>ARTICLE I.&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS</B><BR><BR></FONT></P></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        <B>Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions.</B><BR><BR></FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In  addition  to terms
        elsewhere  herein,  the following terms shall have the following  meanings for the
        purposes of this Agreement:<BR><BR></FONT></TD></TR>

<TR VALIGN=BOTTOM><TD></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Absolute
        Rate</B>&#148; has the meaning given that term in Section 2.2.(c)(ii)(C).<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Absolute
        Rate  Auction</B>&#148;  means a  solicitation  of Bid Rate Quotes  setting  forth
        Absolute Rates pursuant to Section 2.2.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Absolute Rate
        Loan</B>&#148; means a Bid Rate Loan, the interest rate on which is determined on
        the basis of an Absolute Rate pursuant to an Absolute Rate Auction.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Accession
        Agreement</B>&#148;  means an  Accession  Agreement  substantially  in the form of
        Annex I to the Guaranty.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Additional
        Costs</B>&#148; has the meaning given that term in Section 4.1.<BR><BR>
        </FONT></TD></TR>

</TABLE>
<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Adjusted
        Eurodollar  Rate</B>&#148;  means,  with respect to each  Interest  Period for any
        LIBOR Loan, the rate obtained by dividing  (a)&#160;LIBOR for such Interest Period
        by  (b)&#160;a  percentage  equal to 1 minus the stated  maximum rate (stated as a
        decimal)  of  all   reserves,   if  any,   required  to  be   maintained   against
        &#147;Eurocurrency  liabilities&#148;  as  specified in  Regulation&#160;D  of the
        Board of Governors of the Federal Reserve System (or against any other category of
        liabilities  which  includes  deposits by reference to which the interest  rate on
        LIBOR Loans is  determined or any category of extensions of credit or other assets
        which  includes  loans by an office of any Lender  outside of the United States of
        America to residents of the United States of America).  Any change in such maximum
        rate shall result in a change in the Adjusted Eurodollar Rate on the date on which
        such change in such maximum rate becomes effective.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Affiliate</B>&#148;
        means any  Person  (other  than the  Agent or any  Lender):  (a)&#160;directly  or
        indirectly controlling, controlled by, or under common control with, the Borrower;
        (b)&#160;directly  or indirectly  owning or holding ten percent (10.0%) or more of
        any Equity Interest in the Borrower;  or  (c)&#160;ten  percent (10.0%) or more of
        whose  voting stock or other Equity  Interest is directly or  indirectly  owned or
        held  by the  Borrower.  For  purposes  of  this  definition,  &#147;control&#148;
        (including  with   correlative   meanings,   the  terms   &#147;controlling&#148;,
        &#147;controlled  by&#148;  and &#147;under  common control  with&#148;) means the
        possession directly or indirectly of the power to direct or cause the direction of
        the management and policies of a Person,  whether  through the ownership of voting
        securities or by contract or otherwise.  The  Affiliates of a Person shall include
        any executive officer or director of such Person.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agent</B>&#148;
        means Wachovia Bank, National Association,  as contractual  representative for the
        Lenders under the terms of this Agreement, and any of its successors.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agreement
        Date</B>&#148; means the date as of which this Agreement is dated.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Applicable
        Law</B>&#148;  means all applicable provisions of constitutions,  statutes, rules,
        regulations  and orders of all  governmental  bodies and all orders and decrees of
        all courts, tribunals and arbitrators. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Applicable
        Margin</B>&#148;  means the percentage per annum determined, at any time, based on
        the range into which the  Borrower&#146;s  Credit Rating then falls, in accordance
        with the  levels  in the table set forth  below  (each a  &#147;Level&#148;).  Any
        change in the  Borrower&#146;s  Credit  Rating  which  would cause it to move to a
        different  Level in such table shall effect a change in the  Applicable  Margin on
        the  Business  Day on which such  change  occurs.  During any period for which the
        Borrower  has  received  a Credit  Rating  from only one Rating  Agency,  then the
        Applicable  Margin shall be  determined  based on such Credit  Rating.  During any
        period that the Borrower has received two Credit  Ratings,  the Applicable  Margin
        shall be  determined  by the lower of such two Credit  Ratings.  During any period
        that the Borrower has received three Credit Ratings,  the Applicable  Margin shall
        be  determined  by the lower of the highest two such  Credit  Ratings.  During any
        period for which the  Borrower  has not  received a Credit  Rating from any Rating
        Agency,  then the Applicable Margin shall be determined based on Level&#160;5.  As
        of  the  Agreement   Date,   the   Applicable   Margin  is  determined   based  on
        Level&#160;4.<BR><BR></FONT></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-2-</FONT></TD></TR>
</TABLE>


                                            <!--Page 2-->
                                               <PAGE>
                                            <!--Page 3-->

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--6 COLUMNS-->
        <TD WIDTH=8%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=30%></TD>
        <TD WIDTH=22%></TD>
        <TD WIDTH=23%></TD>
        <TD WIDTH=2%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Level</B></FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Borrower&#146;s Credit Rating<BR>
        (S&amp;P/Moody&#146;s)</B></FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Applicable Margin for<BR>
        LIBOR Loans</B></FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Applicable Margin for<BR>
        Base Rate Loans</B></FONT></TD></TR>

<TR VALIGN=BOTTOM><!--SINGLE UNDERLINE-->
        <TD>&nbsp;</TD>
        <TD COLSPAN=5><HR NOSHADE SIZE=1></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A-/A3 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.70%</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.0%</FONT></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BBB+/Baa1 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.80%</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.0%</FONT></TD>
        </TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BBB/Baa2 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.90%</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.0%</FONT></TD>
        </TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BBB-/Baa3 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.00%</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.0%</FONT></TD>
        </TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#139; BBB-/Baa3 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.35%</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.25%</FONT></TD>
        </TR>

</TABLE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Arranger</B>&#148;
        means  Wachovia  Securities,  Inc.,  together  with its  successors  and permitted
        assigns.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Assignee</B>&#148;
        has the meaning given that term in Section 12.5.(d). <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Assignment
        and Acceptance  Agreement</B>&#148;  means an Assignment and Acceptance  Agreement
        among a Lender,  an Assignee and the Agent,  substantially  in the form of Exhibit
        A.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bankruptcy
        Proceeding</B>&#148;  means a case,  proceeding  or  condition of any of the types
        described in Section 10.1.(f) or (g).<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Base
        Rate</B>&#148;  means the per annum rate of  interest  equal to the greater of (a)
        the Prime Rate or (b) the Federal Funds Rate plus one-half of one percent  (0.5%).
        Any  change in the Base  Rate  resulting  from a change  in the Prime  Rate or the
        Federal Funds Rate shall become  effective as of 12:01 a.m. on the Business Day on
        which  each such  change  occurs.  The Base Rate is a  reference  rate used by the
        Lender acting as the Agent in  determining  interest rates on certain loans and is
        not intended to be the lowest rate of interest charged by the Lender acting as the
        Agent or any other Lender on any extension of credit to any debtor. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Base     Rate
        Loan</B>&#148; means a Revolving Loan bearing interest at a rate based on the Base
        Rate.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Benefit
        Arrangement</B>&#148;  means at any  time an  employee  benefit  plan  within  the
        meaning of Section 3(3) of ERISA which is not a Plan or a  Multiemployer  Plan and
        which is maintained or otherwise  contributed to by any member of the ERISA Group.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bid Rate
        Borrowing</B>&#148; has the meaning given that term in Section 2.2.(b).<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bid Rate
        Loan</B>&#148; means a loan made by a Lender under Section 2.2.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bid Rate
        Notes</B>&#148; has the meaning given that term in Section 2.11.(b).<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bid Rate
        Quote</B>&#148; means an offer in accordance with Section&#160;2.2.(c) by a Lender
        to make a Bid Rate Loan with one single specified interest rate. <BR><BR>

         &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bid Rate
        Quote Request</B>&#148; has the meaning given that term in Section 2.2.(b).<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Borrower</B>&#148;
        has the meaning set forth in the  introductory  paragraph hereof and shall include
        the Borrower&#146;s successors and permitted assigns. </FONT></P></TD></TR>

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        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Business
        Day</B>&#148; means (a)&#160;any day other than a Saturday, Sunday or other day on
        which banks in Charlotte,  North  Carolina are authorized or required to close and
        (b)&#160;with  reference to a LIBOR Loan, any such day that is also a day on which
        dealings  in Dollar  deposits  are  carried  out in the London  interbank  market.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Capital
        Expenditure</B>&#148;  means,  with respect to any Person and for a given  period,
        the aggregate of all  expenditures  by such Person for the  acquisition or leasing
        (pursuant to a capital lease) of fixed or capital assets or additions to equipment
        that should be  capitalized  under GAAP on a  consolidated  balance  sheet of such
        Person. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Capital Lease
        Obligation</B>&#148;  means Debt represented by obligations  under a lease that is
        required to be capitalized  for financial  reporting  purposes in accordance  with
        GAAP. The amount of a Capital Lease  Obligation is the capitalized  amount of such
        obligation determined in accordance with GAAP. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Capitalization
        Rate</B>&#148; means 9.5%.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Cash
        Equivalents</B>&#148;  means: (a) securities issued, guaranteed or insured by
        the United  States of America or any of its agencies  with  maturities of not more
        than  one year  from the date  acquired;  (b) certificates  of  deposit  with
        maturities  of not more  than one year from the date  acquired  issued by a United
        States federal or state  chartered  commercial bank of recognized  standing,  or a
        commercial bank organized under the laws of any other country which is a member of
        the  Organization  for  Economic  Cooperation  and  Development,  or  a  political
        subdivision of any such country, acting through a branch or agency, which bank has
        capital and unimpaired surplus in excess of $500,000,000.00  and which bank or its
        holding  company has a short-term  commercial  paper rating of at least A-2 or the
        equivalent  by  S&amp;P  or at  least  P-2  or  the  equivalent  by  Moody&#146;s;
        (c)&#160;reverse repurchase agreements with terms of not more than seven days from
        the date acquired,  for securities of the type described in clause&#160;(a)  above
        and entered into only with commercial banks having the qualifications described in
        clause&#160;(b) above; (d)&#160;commercial paper issued by any Person incorporated
        under the laws of the United  States of America or any State  thereof and rated at
        least A-2 or the  equivalent  thereof by S&amp;P or at least P-2 or the equivalent
        thereof by  Moody&#146;s,  in each case with  maturities of not more than one year
        from the date acquired; and  (e)&#160;investments in money market funds registered
        under  the  Investment  Company  Act of 1940,  which  have net  assets of at least
        $500,000,000.00 and at least 85.0% of whose assets consist of securities and other
        obligations  of  the  type  described  in  clauses&#160;(a)   through  (d)  above.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Collateral
        Account</B>&#148;  means a special non-interest bearing deposit account maintained
        by the Agent at the  Principal  Office and under its sole  dominion  and  control.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Commitment</B>&#148;
        means, as to each Lender,  such  Lender&#146;s  obligation to make Revolving Loans
        pursuant  to  Section&#160;2.1.  and to  issue  (in  the  case  of the  Agent)  or
        participate  in (in  the  case of the  Lenders)  Letters  of  Credit  pursuant  to
        Section&#160;2.4.(a)  and  2.4.(i),  respectively,  in an  amount  up to,  but not
        exceeding  (but in the  case of the  Lender  acting  as the  Agent  excluding  the
        aggregate  amount  of  participations  in the  Letters  of  Credit  held by  other
        Lenders),  the amount set forth for such  Lender on its  signature  page hereto as
        such Lender&#146;s &#147;Commitment Amount&#148; or as </FONT></P></TD></TR>

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        set forth in the applicable Assignment and Acceptance  Agreement,  as the same may
        be reduced from time to time pursuant to  Section&#160;2.14.  or as appropriate to
        reflect  any  assignments  to  or by  such  Lender  effected  in  accordance  with
        Section&#160;12.5. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Commitment
        Percentage</B>&#148;  means,  as  to  each  Lender,  the  ratio,  expressed  as  a
        percentage,   of  (a)&#160;the   amount  of  such   Lender&#146;s   Commitment  to
        (b)&#160;the  aggregate  amount  of  the  Commitments  of all  Lenders  hereunder;
        provided,  however,  that if at the time of  determination  the  Commitments  have
        terminated or been reduced to zero, the &#147;Commitment Percentage&#148;  of each
        Lender shall be the  Commitment  Percentage  of such Lender in effect  immediately
        prior to such termination or reduction. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Compliance
        Certificate</B>&#148; has the meaning given that term in Section 8.3.<BR><BR>


        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Construction
        Budget</B>&#148;  means the fully budgeted costs  associated  with the acquisition
        and  construction  of real  property  (including,  but not limited to, the cost of
        acquiring  such real  property) as  reasonably  determined by the Borrower in good
        faith. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Continue</B>&#148;,
        &#147;<B>Continuation</B>&#148;  and  &#147;<B>Continued</B>&#148;  each refers to
        the  continuation  of a LIBOR Loan from one  Interest  Period to another  Interest
        Period pursuant to Section&#160;2.9. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Convert</B>&#148;,
        &#147;<B>Conversion</B>&#148;  and &#147;<B>Converted</B>&#148; each refers to the
        conversion  of a Loan  of  one  Type  into a Loan  of  another  Type  pursuant  to
        Section&#160;2.10. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Credit
        Event</B>&#148; means any of the following: (a)&#160;the making (or deemed making)
        of any Loan,  (b)&#160;the  Conversion  of a Loan and  (c)&#160;the  issuance of a
        Letter of Credit. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Credit
        Rating</B>&#148;  means the  rating  assigned  by a Rating  Agency  to the  senior
        unsecured long term indebtedness of the Borrower. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Debt</B>&#148;
        means,  with respect to a Person, at the time of computation  thereof,  all of the
        following (without duplication): (a)&#160;obligations of such Person in respect of
        money  borrowed;  (b)&#160;obligations  of such  Person  (other  than  trade  debt
        incurred in the ordinary  course of business),  whether or not for money  borrowed
        (i)&#160;represented   by  notes  payable,  or  drafts  accepted,   in  each  case
        representing extensions of credit, (ii)&#160;evidenced by bonds, debentures, notes
        or similar instruments,  or  (iii)&#160;constituting  purchase money indebtedness,
        conditional  sales  contracts,  title retention debt  instruments or other similar
        instruments,  upon which interest  charges are customarily paid or that are issued
        or  assumed  as full or  partial  payment  for  property;  (c)&#160;Capital  Lease
        Obligations of such Person;  (d)&#160;all reimbursement obligations of such Person
        under any  letters  of credit or  acceptances  (whether  or not the same have been
        presented  for payment);  (e)&#160;obligations  of such Person with respect to any
        Equity Issuance of such Person which is convertible  into or exchangeable for Debt
        of such Person,  valued at the amount of Debt  resulting  from such  conversion or
        exchange;  (f)&#160;all  obligations of such Person to purchase,  redeem,  retire,
        defease or otherwise  make any payment in respect of any Equity  Interests in such
        Person or any other Person (other than obligations of such Person to make payments
        in respect of such Equity  Interests  in order to maintain  its status as a REIT),
        valued, in the case of redeemable  Preferred Equity  Interests,  at the greater of
        its  voluntary  or  involuntary  liquidation  preference  plus  accrued
        </FONT></P></TD></TR>

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        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        and unpaid  dividends  (excluding,  (i)&#160;in  the case of the  Borrower and its
        Subsidiaries,  any  obligation  to acquire  limited  partnership  interests in any
        Subsidiary  of the  Borrower  or the  UPREIT  which  can be  satisfied  in full by
        exchanging  shares of common stock of the  Borrower  for such limited  partnership
        interests, and (ii)&#160;in the case of the Borrower,  dividends declared and paid
        to holders of common shares of the  Borrower);  (g)&#160;net  obligations  of such
        Person  under  Swap   Agreements;   and  (h)  all  Debt  of  other  Persons  which
        (i)&#160;such  Person has  guaranteed  or is otherwise  recourse to such Person or
        (ii)&#160;is  secured by a Lien on any property of such Person.  The amount of any
        net obligation under any Swap Agreement on any date shall be deemed to be the Swap
        Termination Value thereof as of such date. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Default</B>&#148;
        means any of the events specified in Section&#160;10.1.,  whether or not there has
        been  satisfied any  requirement  for the giving of notice,  the lapse of time, or
        both. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Defaulting
        Lender</B>&#148; has the meaning set forth in Section 3.11.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Designated
        Lender</B>&#148;  means a special  purpose  corporation  which is  sponsored  by a
        Lender, that is engaged in making, purchasing or otherwise investing in commercial
        loans in the  ordinary  course of its  business  and that issues (or the parent of
        which issues)  commercial paper rated at least P-1 (or the then equivalent  grade)
        by Moody&#146;s  or A-1 (or the then equivalent  grade) by S&amp;P that, in either
        case, (a) is organized under the laws of the United States of America or any state
        thereof,   (b)  shall  have  become  a  party  to  this   Agreement   pursuant  to
        Section&#160;12.5.(e) and (c) is not otherwise a Lender. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Designated
        Lender  Note</B>&#148;  means a Bid  Rate  Note  of the  Borrower  evidencing  the
        obligation  of the Borrower to repay Bid Rate Loans made by a  Designated  Lender.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Designating
        Lender</B>&#148; has the meaning given that term in Section 12.5.(e).<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Designation
        Agreement</B>&#148;   means  a  Designation  Agreement  between  a  Lender  and  a
        Designated  Lender  and  accepted  by the  Agent,  substantially  in the  form  of
        Exhibit&#160;B  or such  other  form as may be  agreed  to by  such  Lender,  such
        Designated Lender and the Agent. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Dollars</B>&#148;
        or &#147;<B>$</B>&#148; means the lawful currency of the United States of America.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>EBITDA</B>&#148;
        means for any period for the Borrower and its  Subsidiaries,  net income (prior to
        the payment of any preferred  dividends) excluding the following amounts (but only
        to  the  extent   included   in   determining   net   income  for  such   period):
        (a)&#160;Interest Expense; (b)&#160;all provisions for any federal, state or other
        income  taxes;  (c)&#160;depreciation,  amortization  and other  non-recurring  or
        non-cash charges;  (d)&#160;extraordinary  gains and losses; and (e)&#160;taxes on
        such  excluded  gains and tax  deductions  or credits on account of such  excluded
        losses,  in each case on a consolidated  basis determined in accordance with GAAP.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Effective
        Date</B>&#148;  means the later of: (a)&#160;the  Agreement Date; and (b)&#160;the
        date on which all of the conditions precedent set forth in Section&#160;5.1. shall
        have been fulfilled or waived in writing by the Requisite Lenders.
        </FONT></P></TD></TR>

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        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eligible
        Assignee</B>&#148;  means any  Person  who is:  (i)&#160;currently  a Lender or an
        affiliate  of  a  Lender;  (ii)&#160;a  commercial  bank,  trust,  trust  company,
        insurance company, investment bank or pension fund organized under the laws of the
        United States of America, or any state thereof,  and having total assets in excess
        of  $5,000,000,000;  (iii)&#160;a  savings and loan  association  or savings  bank
        organized  under the laws of the United States of America,  or any state  thereof,
        and  having  a  tangible  net  worth  of at  least  $500,000,000;  or  (iv)&#160;a
        commercial bank organized under the laws of any other country which is a member of
        the  Organization  for  Economic  Cooperation  and  Development,  or  a  political
        subdivision   of  any  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 Person is not currently a Lender
        or an  affiliate  of a  Lender,  such  Person&#146;s  senior  unsecured  long term
        indebtedness  must  be  rated  BBB  or  higher  by  S&amp;P,  Baa2  or  higher  by
        Moody&#146;s,  or the equivalent or higher of either such rating by another rating
        agency acceptable to the Agent.  Notwithstanding the foregoing,  during any period
        in which an Event of Default shall have  occurred and be  continuing  under any of
        subsections&#160;(a),   (b),   (f)  or  (g)  of   Section&#160;10.1.,   the   term
        &#147;Eligible  Assignee&#148;  shall mean any Person  that is not an  individual.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eligible
        Mortgage Income</B>&#148; means, for any given period, the aggregate income of the
        Borrower and the Guarantors from Eligible  Mortgage Notes  Receivable  during such
        period. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eligible
        Mortgage Note Receivable</B>&#148;  means a promissory note which satisfies all of
        the following requirements:  (a)&#160;such  promissory note is owned solely by the
        Borrower or a Guarantor;  (b)&#160;such  promissory note is secured by a Mortgage;
        (c)&#160;neither  such promissory note, nor any interest of any of the Borrower or
        such Guarantor therein, is subject to (i)&#160;any Lien other than Permitted Liens
        of the types  described  in clauses (a) through (c) of the  definition  thereof or
        (ii)&#160;any Negative Pledge; (d)&#160;the real property subject to such Mortgage
        is not subject to any other Lien other than Permitted Liens of the types described
        in clauses (a) through (c) of the definition  thereof;  (e)&#160;the real property
        subject  to  such  Mortgage  is  free  of all  structural  defects,  environmental
        conditions  or other  adverse  matters  except for defects,  conditions or matters
        individually or collectively which are not material to the profitable operation of
        such real  property;  (f)&#160;such  real property is occupied and is in operation
        (or will be in operation after the completion of construction  (which is otherwise
        permitted  hereunder) with respect to such real property);  (g)&#160;any  required
        principal,  interest or other payment due under such  promissory  note is not more
        than 60 days past due; and (h) there  exists no default or event of default  under
        such promissory note. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Environmental
        Laws</B>&#148;  means any Applicable Law relating to  environmental  protection or
        the manufacture,  storage,  disposal or clean-up of Hazardous Materials including,
        without limitation,  the following:  Clean Air Act, 42 U.S.C. &#167; 7401 et seq.;
        Federal Water Pollution  Control Act, 33 U.S.C.  &#167;  1251 et seq.; Solid Waste
        Disposal Act, as amended by the Resource  Conservation and Recovery Act, 42 U.S.C.
        &#167;  6901 et  seq.;  Comprehensive  Environmental  Response,  Compensation  and
        Liability Act, 42 U.S.C.  &#167;&#160;9601 et seq.; National  Environmental Policy
        Act, 42 U.S.C.  &#167; 4321 et seq.;  regulations of the Environmental  Protection
        Agency  and any  applicable  rule of common  law and any  judicial  interpretation
        thereof relating primarily to the environment or Hazardous Materials. </FONT></P></TD></TR>

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        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Equity
        Interest</B>&#148;  means, with respect to any Person,  any share of capital stock
        of (or other ownership or profit interests in) such Person, any warrant, option or
        other right for the purchase or other acquisition from such Person of any share of
        capital  stock of (or other  ownership or profit  interests  in) such Person,  any
        security  convertible  into or exchangeable  for any share of capital stock of (or
        other  ownership or profit  interests in) such Person or warrant,  right or option
        for the  purchase  or other  acquisition  from such Person of such shares (or such
        other  interests),  and any other  ownership  or profit  interest  in such  Person
        (including, without limitation,  partnership,  member or trust interests therein),
        whether voting or nonvoting, and whether or not such share, warrant, option, right
        or  other   interest  is  authorized   or  otherwise   existing  on  any  date  of
        determination. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Equity
        Issuance</B>&#148; means any issuance or sale by a Person of any Equity Interest.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>ERISA</B>&#148;
        means the Employee  Retirement Income Security Act of 1974, as in effect from time
        to time.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>ERISA
        Group</B>&#148; means the Borrower, any Subsidiary and all members of a controlled
        group of corporations and all trades or businesses  (whether or not  incorporated)
        under common  control  which,  together with the Borrower or any  Subsidiary,  are
        treated as a single employer under  Section&#160;414 of the Internal Revenue Code.
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Event      of
        Default</B>&#148;  means  any  of  the  events  specified  in  Section&#160;10.1.,
        provided that any  requirement  for notice or lapse of time or any other condition
        has been satisfied. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Excluded
        Asset</B>&#148;  means either a lease by the Borrower or any Guarantor, as lessor,
        of a real  property  asset,  or a  promissory  note  held by the  Borrower  or any
        Guarantor  which is secured by a Mortgage on real  property,  in either case where
        (a)&#160;any  required base rental payment,  or principal or interest payment,  as
        the case may be, is more than 60 days past due or (b)&#160;in  the case of a lease
        wherein the tenant is the subject of a Bankruptcy Proceeding,  such lease has been
        rejected in bankruptcy; provided that assets with respect to real property subject
        to a lease  rejected in bankruptcy  shall cease to be considered  Excluded  Assets
        once such real property has been re-leased to a third-party which is not otherwise
        subject to clause (a) or (b) above. <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Excluded
        Subsidiary</B>&#148;  means any Subsidiary (a)&#160;either (i)&#160;formed for the
        specific  purpose  of  holding  title  to  assets  which  are  collateral  for any
        outstanding  Secured  Debt  of  such  Subsidiary  and  which  is  prohibited  from
        Guarantying  the Debt of any  other  Person  pursuant  to  (x)&#160;any  document,
        instrument or agreement  evidencing  such Secured Debt or (y)&#160;a  provision of
        such Person&#146;s  organizational  documents which provision was included in such
        Person&#146;s  organizational  documents as a condition  to the  extension of such
        Secured Debt or  (ii)&#160;that is not a Wholly Owned Subsidiary and cannot become
        a party to the  Guaranty  without  violating  (x)&#160;terms  of its  articles  of
        incorporation,  operating agreement,  partnership agreement, declaration of trust,
        shareholders agreement, member agreement or other similar organizational document,
        which terms  expressly  prohibit  such  Subsidiary  from  providing  Guarantees of
        Indebtedness of any other Person or (y)&#160;any fiduciary obligation owing to the
        holders of an Equity Interest in such Subsidiary and imposed under  Applicable Law
        and (b)&#160;for  which none of the Borrower,  any Subsidiary  (other than another
        Excluded  Subsidiary)  or any other Loan Party has  Guaranteed  any
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-8-</FONT></TD></TR>
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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM><TD></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        of the  Debt of such  Subsidiary  or has any  direct  obligation  to  maintain  or
        preserve such Subsidiary&#146;s financial condition or to cause such Subsidiary to
        achieve any specified levels of operating results, except for customary exceptions
        for fraud,  misapplication of funds, environmental indemnities,  and other similar
        exceptions  to  recourse  liability.  A  Subsidiary  shall only remain an Excluded
        Subsidiary  for so long as  (A)&#160;the  above  requirements  are  satisfied  and
        (B)&#160;such  Subsidiary does not Guarantee any Indebtedness of any Person (other
        than another Excluded Subsidiary). <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Existing
        Credit  Agreement</B>&#148;   has  the  meaning  given  that  term  in  the  first
        &#147;WHEREAS&#148; clause of this Agreement.<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Existing
        Letters  of  Credit</B>&#148;  means each of the  letters of credit  issued by the
        Agent under the Existing Credit Agreement and described on  Schedule&#160;1.1.(A).
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Facility
        Fee</B>&#148;  means  the per  annum  percentage  set  forth  in the  table  below
        corresponding  to  the  Level  at  which  the  &#147;Applicable   Margin&#148;  is
        determined in accordance with the definition thereof: </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--5 COLUMNS-->
        <TD WIDTH=15%></TD>
        <TD WIDTH=20%></TD>
        <TD WIDTH=40%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=10%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Level</B></FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B> Borrower&#146;s Credit Rating<BR>
        (S&amp;P/Moody&#146;s)</B></FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Facility Fee</B></FONT></TD>
        <TD>&nbsp;</TD></TR>

<TR VALIGN=BOTTOM><!--SINGLE UNDERLINE-->
        <TD>&nbsp;</TD>
        <TD COLSPAN=3><HR NOSHADE SIZE=1></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A-/A3 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.15%</FONT></TD>
        <TD>&nbsp;</TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BBB+/Baa1 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.15%</FONT></TD>
        <TD>&nbsp;</TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BBB/Baa2 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.20%</FONT></TD>
        <TD>&nbsp;</TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BBB-/Baa3 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.20%</FONT></TD>
        <TD>&nbsp;</TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#139; BBB-/Baa3 (or equivalent)</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.30%</FONT></TD>
        <TD>&nbsp;</TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        As   of    the    Agreement    Date,    the    Facility    Fee    equals    0.20%.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Fair   Market
        Value</B>&#148;  means,  with  respect  to (a) a  security  listed  on a  national
        securities  exchange or the NASDAQ National Market,  the price of such security as
        reported on such exchange by any widely  recognized  reporting method  customarily
        relied upon by financial  institutions and (b) with respect to any other property,
        the  price  which  could  be  negotiated  in  an  arm&#146;s-length   free  market
        transaction,  for cash,  between a willing seller and a willing buyer,  neither of
        which is under pressure or compulsion to complete the transaction.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Federal Funds
        Rate</B>&#148;  means,  for any day,  the rate per  annum  (rounded  upward to the
        nearest  1/100th of 1%) equal to the  weighted  average of the rates on  overnight
        Federal funds  transactions with members of the Federal Reserve System arranged by
        Federal funds brokers on such day, as published by the Federal Reserve Bank of New
        York on the Business Day next succeeding  such day,  provided that (a) if such day
        is not a Business  Day, the Federal  Funds Rate for such day shall be such rate on
        such  transactions on the next preceding  Business Day, and (b) if no such rate is
        so published on such next succeeding Business Day, the Federal Funds Rate for such
        day  shall be the  average  rate  quoted  to the Agent by  federal  funds  dealers
        selected by the Agent on such day on such transaction as determined by the Agent.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Fees</B>&#148;
        means the fees and commissions provided for or referred to in Section 3.6. and any
        other fees payable by the Borrower hereunder or under any other Loan Document.
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Finance
        Lease</B>&#148;  means a lease of a real property asset which would be categorized
        as a capital  lease under GAAP other than a lease  categorized  as a capital lease
        solely because such lease contains a bargain purchase option.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Fitch</B>&#148;
        means Fitch, Inc. and its successors.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Fixed
        Charges</B>&#148;   means  for  any  period,  the  sum  of  (a)  Interest  Expense
        <U>plus</U> (b) regularly  scheduled principal payments on Debt during such period
        (excluding any balloon,  bullet or similar  principal  payment payable on any Debt
        which  repays  such  Debt  in  full)   <U>plus</U>  (c)  all  cash  dividends  and
        distributions on Preferred Equity Interests of the Borrower or any Subsidiary paid
        during such period to any Person other than the Borrower or a Subsidiary, all on a
        consolidated basis determined in accordance with GAAP.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Funds
        Available for  Distribution</B>&#148;  means, for any accounting period, (a) Funds
        From Operations for such period  <U>minus</U>  (b) the aggregate amount of Capital
        Expenditures  actually  incurred by the Borrower and its Subsidiaries  during such
        period,  excluding (i) Capital  Expenditures which directly result in an aggregate
        increase in the square  footage of real  property  assets owned by the Borrower or
        any Subsidiary which are available for lease, (ii) Capital Expenditures  resulting
        from tenant improvement and leasing commissions incurred for new tenants and (iii)
        Capital  Expenditures  made in connection  with the  acquisition  of real property
        assets,  provided that such Capital Expenditures are fully reflected in the budget
        relating to such acquisition,  and provided further that such capital expenditures
        are made within twelve months  following  consummation of such acquisition of real
        property assets.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Funds    From
        Operations</B>&#148;  means,  for any  period,  (a) net income  (before  preferred
        dividends) of the Borrower and its  Subsidiaries  for such period  determined on a
        consolidated  basis  exclusive  of the  following  (to the extent  included in the
        determination  of such net income):  (i)  depreciation  and amortization and other
        non-cash charges; (ii) gains and losses from extraordinary or non-recurring items;
        (iii) gains and losses on sales of real estate  excluding gains and losses through
        entities whose primary business is the acquisition/development of assets for sale,
        <U>plus</U>  (b)  the   Borrower&#146;s   share  of  Funds  From  Operations  from
        Unconsolidated Affiliates.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>GAAP</B>&#148;
        means  generally  accepted  accounting  principles  set forth in the  opinions and
        pronouncements  of the Accounting  Principles  Board of the American  Institute of
        Certified Public  Accountants and statements and  pronouncements  of the Financial
        Accounting Standards Board or in such other statements by such other entity as may
        be approved  by a  significant  segment of the  accounting  profession,  which are
        applicable to the circumstances as of the date of determination.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Governmental
        Approvals</B>&#148;  means all authorizations,  consents,  approvals, licenses and
        exemptions of,  registrations  and filings with, and reports to, all  Governmental
        Authorities.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Governmental
        Authority</B>&#148;  means  any  national,  state  or  local  government  (whether
        domestic or foreign), any political subdivision thereof or any other governmental,
        quasi-governmental,  judicial,  public or  statutory  instrumentality,  authority,
        body, agency, bureau
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        or entity (including,  without limitation, the Federal Deposit Insurance Corporation,
        the Comptroller of the Currency or the Federal Reserve Board,  any central bank or
        any comparable authority) or any arbitrator with authority to bind a party at law.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Gross   Lease
        Revenues</B>&#148;  means, for a given period,  the aggregate gross revenue of the
        Borrower and its Subsidiaries  from leases of real property assets,  (a) excluding
        with  respect to such  leases  that are not  Finance  Leases,  straight  line rent
        adjustments (reported in the consolidated financial statements of the Borrower and
        its  Subsidiaries for purposes of GAAP) in respect of such leases for such period,
        and (b)  including the principal  component of all payments  actually  received in
        respect of Finance Leases during such period.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Ground
        Lease</B>&#148;   means  a  ground  lease   containing  the  following  terms  and
        conditions:  (a) either (i) a remaining term (taking into account extensions which
        may be effected  by the lessee  without the consent of the lessor) of no less than
        30 years from the Agreement  Date, or (ii) the right of the lessee to purchase the
        property on terms reasonably  acceptable to the Agent; (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 to give the holder of any mortgage
        Lien on such leased  property  written  notice of any  defaults on the part of the
        lessee  and 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; (d)
        free  transferability  of the lessee&#146;s  interest under such lease,  including
        ability to sublease,  subject to only reasonable consent provisions; and (e) 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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Guarantor</B>&#148;
        means any Person that is a party to the Guaranty as a &#147;Guarantor&#148; and in
        any event shall include each Subsidiary (unless an Excluded Subsidiary).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Guaranty</B>&#148;,                        &#147;<B>Guaranteed</B>&#148;,
        &#147;<B>Guarantying</B>&#148;  or to  &#147;<B>Guarantee</B>&#148;  as applied to
        any obligation  means and includes:  (a) a guaranty  (other than by endorsement of
        negotiable  instruments  for  collection  in the  ordinary  course  of  business),
        directly or indirectly,  in any manner, of any part or all of such obligation,  or
        (b) an agreement, direct or indirect,  contingent or otherwise, and whether or not
        constituting a guaranty, the practical effect of which is to assure the payment or
        performance (or payment of damages in the event of  nonperformance) of any part or
        all of such obligation  whether by: (i) the purchase of securities or obligations,
        (ii) the purchase, sale or lease (as lessee or lessor) of property or the purchase
        or sale of services primarily for the purpose of enabling the obligor with respect
        to such  obligation to make any payment or  performance  (or payment of damages in
        the  event  of  nonperformance)  of or on  account  of any  part  or  all of  such
        obligation,  or to assure the owner of such  obligation  against  loss,  (iii) the
        supplying of funds to or in any other manner investing in the obligor with respect
        to such  obligation,  (iv)  repayment of amounts  drawn down by  beneficiaries  of
        letters of credit (including Letters of Credit),  or (v) the supplying of funds to
        or  investing  in a Person  on  account  of all or any part of such  Person&#146;s
        obligation under a Guaranty of any obligation or indemnifying or holding harmless,
        in any way, such Person against any part or all of such obligation. As the context
        requires,  &#147;Guaranty&#148;   shall  also  mean  the  Guaranty  to  which  the
        Guarantors are parties substantially in the form of Exhibit O.
        </FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Hazardous
        Materials</B>&#148;  means all or any of the following:  (a)  substances  that are
        defined  or  listed  in, or  otherwise  classified  pursuant  to,  any  applicable
        Environmental   Laws   as   &#147;hazardous   substances&#148;,    &#147;hazardous
        materials&#148;, &#147;hazardous wastes&#148;, &#147;toxic substances&#148; or any
        other  formulation  intended to define,  list or classify  substances by reason of
        deleterious   properties   such   as   ignitability,    corrosivity,   reactivity,
        carcinogenicity,  reproductive  toxicity,  &#147;TCLP&#148;  toxicity  or &#147;EP
        toxicity&#148;;  (b) oil, petroleum or petroleum derived substances,  natural gas,
        natural gas liquids or synthetic  gas and  drilling  fluids,  produced  waters and
        other wastes  associated with the exploration,  development or production of crude
        oil,  natural  gas or  geothermal  resources;  (c)  any  flammable  substances  or
        explosives or any radioactive materials; (d) asbestos in any form; (e) toxic mold;
        and (f) electrical equipment which contains any oil or dielectric fluid containing
        levels of polychlorinated biphenyls in excess of fifty parts per million.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Intellectual
        Property</B>&#148; has the meaning given that term in Section 6.1.(s).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest
        Expense</B>&#148;  means, for any period,  the total interest expense  (including,
        without limitation, capitalized interest expense and interest expense attributable
        to Capital Lease  Obligations) of the Borrower and its Subsidiaries  determined in
        accordance with GAAP.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest
        Period</B>&#148; means:
        <BR><BR></FONT></P></TD></TR>

 <TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;with  respect to any LIBOR Loan, each period commencing on
        the date  such  LIBOR  Loan is made or the last day of the  immediately  preceding
        Interest  Period for such Loan and ending one week (if  available  from all of the
        Lenders), or one, two or three months thereafter,  as the Borrower may select in a
        Notice of Borrowing,  Notice of Continuation or Notice of Conversion,  as the case
        may be, except that each Interest  Period that  commences on the last Business Day
        of a  calendar  month  shall  end  on the  last  Business  Day of the  appropriate
        subsequent calendar month; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;with  respect to any Bid Rate Loan, the period commencing
        on the date such Bid Rate Loan is made and ending 30, 60 or 90 days thereafter, as
        the Borrower may select as provided in Section 2.2.(b).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Notwithstanding  the  foregoing:  (i) if any Interest  Period would  otherwise end
        after the  Termination  Date,  such Interest  Period shall end on the  Termination
        Date; and (ii) each Interest Period that would otherwise end on a day which is not
        a Business Day shall end on the  immediately  following  Business Day (or, if such
        immediately  following  Business  Day  falls in the next  calendar  month,  on the
        immediately preceding Business Day).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Internal
        Revenue Code</B>&#148; means the Internal Revenue Code of 1986, as amended.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Investment</B>&#148;
        means, (x) with respect to any Person,  any acquisition or investment  (whether or
        not of a controlling  interest) by such Person,  by means of any of the following:
        (a) the purchase or other  acquisition of any Equity  Interest in another  Person,
        (b) a loan,  advance or extension of credit to, capital  contribution to, Guaranty
        of Debt of, or  purchase  or other  acquisition  of any Debt of,  another  Person,
        including any partnership or joint venture  interest in such other Person,  or (c)
        the purchase or other acquisition (in one transaction or a series of
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        transactions)  of assets of another  Person  that  constitute  the  business  or a
        division or operating  unit of another Person and (y) with respect to any Property
        or other  asset,  the  acquisition  thereof.  Any  binding  commitment  to make an
        Investment in any other Person, as well as any option of another Person to require
        an  Investment  in such  Person,  shall be deemed to be an  Investment.  Except as
        expressly  provided  otherwise,  for purposes of determining  compliance  with any
        covenant  contained in a Loan Document,  the amount of any Investment shall be the
        amount actually invested, without adjustment for subsequent increases or decreases
        in the value of such Investment.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Investment
        Grade Rating</B>&#148;  shall mean a rating of BBB-/Baa3 (or equivalent) or higher
        from two of the Rating Agencies.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>L/C
        Commitment Amount</B>&#148; equals $30,000,000.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Lender</B>&#148;
        means  each   financial   institution   from  time  to  time  party  hereto  as  a
        &#147;Lender&#148;   or  a  &#147;Designated   Lender,&#148;   together  with  its
        respective successors and permitted assigns, and as the context requires, includes
        the   Swingline   Lender;   <U>provided</U>,   <U>however</U>,   that   the   term
        &#147;Lender&#148;  shall exclude each Designated Lender when used in reference to
        any Loan other than a Bid Rate Loan, the Commitments or terms relating to any Loan
        other than a Bid Rate Loan and shall further  exclude each  Designated  Lender for
        all other  purposes under the Loan  Documents  except that any  Designated  Lender
        which funds a Bid Rate Loan shall,  subject to Section  12.5.(e),  have the rights
        (including the rights given to a Lender contained in Sections 12.2. and 12.9.) and
        obligations of a Lender associated with holding such Bid Rate Loan.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Lending   Office</B>&#148;
        means,  for each  Lender  and for each Type of Loan,  the  office  of such  Lender
        specified as such on its signature page hereto or in the applicable Assignment and
        Acceptance  Agreement,  or such  other  office of such  Lender as such  Lender may
        notify the Agent in writing from time to time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Letter of
        Credit</B>&#148; has the meaning given that term in Section 2.4.(a).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Letter  of
        Credit   Documents</B>&#148;   means,  with  respect  to  any  Letter  of  Credit,
        collectively,   any  application  therefor,  any  certificate  or  other  document
        presented in  connection  with a drawing under such Letter of Credit and any other
        agreement,  instrument or other document governing or providing for (a) the rights
        and obligations of the parties concerned or at risk with respect to such Letter of
        Credit or (b) any collateral security for any of such obligations.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Letter  of
        Credit  Liabilities</B>&#148;  means,  without  duplication,  at any  time  and in
        respect of any Letter of Credit,  the sum of (a) the Stated  Amount of such Letter
        of Credit plus (b) the  aggregate  unpaid  principal  amount of all  Reimbursement
        Obligations  of the  Borrower  at such  time due and  payable  in  respect  of all
        drawings  made under such  Letter of Credit.  For  purposes of this  Agreement,  a
        Lender  (other  than the  Lender  acting as the  Agent)  shall be deemed to hold a
        Letter of Credit Liability in an amount equal to its participation interest in the
        related Letter of Credit under Section 2.4.(i), and the Lender acting as the Agent
        shall be deemed to hold a Letter of  Credit  Liability  in an amount  equal to its
        retained interest in the related Letter of Credit after
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        giving  effect to the  acquisition  by the Lenders other than the Lender acting as
        the Agent of their participation interests under such Section.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Level</B>&#148;
        has the meaning  given that term in the  definition  of the term  &#147;Applicable
        Margin.&#148;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>LIBOR</B>&#148;
        means,  for any LIBOR Loan for any Interest  Period  therefor,  the rate per annum
        (rounded upwards, if necessary,  to the nearest 1/100 of 1%) appearing on Telerate
        Page  3750  (or any  successor  page) as the  London  interbank  offered  rate for
        deposits in Dollars at  approximately  11:00 a.m.  (London time) two Business Days
        prior to the first  day of such  Interest  Period  for a term  comparable  to such
        Interest  Period.  If for  any  reason  such  rate  is  not  available,  the  term
        &#147;LIBOR&#148; shall mean, for any LIBOR Loan for any Interest Period therefor,
        the rate per annum  (rounded  upwards,  if necessary,  to the nearest 1/100 of 1%)
        appearing on the Reuters Screen LIBO Page as the London interbank offered rate for
        deposits in Dollars at  approximately  11:00 a.m.  (London time) two Business Days
        prior to the first  day of such  Interest  Period  for a term  comparable  to such
        Interest  Period;  provided,  however,  if more than one rate is  specified on the
        Reuters Screen LIBO Page, the applicable  rate shall be the arithmetic mean of all
        such rates.  If for any reason none of the  foregoing  rates is  available,  LIBOR
        shall be, for any Interest Period, the rate per annum reasonably determined by the
        Agent as the rate of interest at which Dollar deposits in the  approximate  amount
        of the LIBOR Loan  comprising part of such borrowing would be offered by the Agent
        to major banks in the London  interbank  eurodollar  market at their request at or
        about 11:00 a.m.  (London  time) two Business  Days prior to the first day of such
        Interest Period for a term comparable to such Interest Period.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>LIBOR
        Auction</B>&#148;  means a  solicitation  of Bid Rate Quotes  setting  forth LIBOR
        Margin Loans based on LIBOR pursuant to Section 2.2.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>LIBOR
        Loan</B>&#148; means a Revolving Loan bearing interest at a rate based on LIBOR.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>LIBOR Margin
        Loan</B>&#148;  means a Bid Rate Loan the interest  rate on which is determined on
        the basis of LIBOR pursuant to a LIBOR Auction.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Lien</B>&#148;
        as applied  to the  property  of any  Person  means:  (a) any  security  interest,
        encumbrance,  mortgage,  deed to secure debt, deed of trust, pledge, lien, charge,
        Negative  Pledge,  conditional sale or other title retention  agreement,  or other
        security  title or  encumbrance  of any kind in  respect of any  property  of such
        Person, or upon the income or profits therefrom;  (b) any arrangement,  express or
        implied,  under which any property of such Person is  transferred,  sequestered or
        otherwise identified for the purpose of subjecting the same to the payment of Debt
        or performance of any other  obligation in priority to the payment of the general,
        unsecured  creditors of such  Person;  (c) the filing of any  financing  statement
        under the Uniform  Commercial Code or its equivalent in any jurisdiction;  and (d)
        any  agreement  by such  Person  to grant,  give or  otherwise  convey  any of the
        foregoing.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan</B>&#148;
        means a Revolving Loan, a Bid Rate Loan or a Swingline Loan.
        </FONT></P></TD></TR>

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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan
        Document</B>&#148;  means  this  Agreement,  each  Note,  each  Letter  of  Credit
        Document,  the Guaranty  and each other  document or  instrument  now or hereafter
        executed and delivered by a Loan Party in connection with, pursuant to or relating
        to this Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan
        Party</B>&#148;  means each of the  Borrower,  any Guarantor and each other Person
        who  guarantees  all or a  portion  of the  Obligations  and/or  who  pledges  any
        collateral  security  to secure  all or a  portion  of the  Obligations.  Schedule
        1.1.(B)  sets  forth  the Loan  Parties  in  addition  to the  Borrower  as of the
        Agreement Date.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Material
        Adverse  Effect</B>&#148;  means a materially  adverse effect on (a) the business,
        assets, liabilities,  condition (financial or otherwise), results of operations or
        business  prospects of the Borrower and its Subsidiaries taken as a whole, (b) the
        ability of the Borrower or any other Loan Party to perform its  obligations  under
        any Loan Document to which it is a party,  (c) the validity or  enforceability  of
        any of the Loan  Documents,  (d) the rights and  remedies  of the  Lenders and the
        Agent under any of the Loan  Documents or (e) the timely  payment of the principal
        of or interest on the Loans or other amounts  payable in  connection  therewith or
        the timely payment of all Reimbursement Obligations.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Material
        Debt</B>&#148; has the meaning given that term in Section 10.1.(e)(i).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Material
        Plan</B>&#148;  means  at any  time a Plan  or  Plans  having  aggregate  Unfunded
        Liabilities in excess of $1,000,000.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Moody's</B>&#148;
        means Moody&#146;s Investors Service, Inc. and its successors.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Mortgage</B>&#148;
        means a  mortgage,  deed  of  trust,  deed to  secure  debt  or  similar  security
        instrument made by a Person owning an interest in real property granting a Lien on
        such  interest in real property as security for the payment of Debt of such Person
        or another Person.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Mortgage
        Receivable</B>&#148;  means a  promissory  note secured by a Mortgage of which the
        Borrower,  a Guarantor or one of their  respective  Subsidiaries is the holder and
        retains the rights of collection of all payments thereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Multiemployer
        Plan</B>&#148;  means at any time a  multiemployer  plan  within  the  meaning  of
        Section  4001(a)(3) of ERISA to which any member of the ERISA Group is then making
        or accruing an obligation to make  contributions  or has within the preceding five
        plan years made  contributions,  including  for these  purposes  any Person  which
        ceased to be a member of the ERISA Group during such five year period.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Negative
        Pledge</B>&#148;  means a provision of any agreement (other than this Agreement or
        any other Loan  Document)  that  prohibits or limits the creation or assumption of
        any Lien on any assets of a Person or entitles  another  Person to obtain or claim
        the benefit of a Lien on any assets of such  Person;  provided,  however,  that an
        agreement that conditions a Person&#146;s  ability to encumber its assets upon the
        maintenance of one or more specified ratios that limit such Person&#146;s  ability
        to encumber its assets but that do not generally  prohibit the  encumbrance of its
        assets, or
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        the  encumbrance of specific  assets,  shall not constitute a Negative  Pledge for
        purposes of this Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Net
        Proceeds</B>&#148;  means with  respect to any Equity  Issuance  by a Person,  the
        aggregate  amount  of all cash and the Fair  Market  Value of all  other  property
        received  by such  Person in respect of such  Equity  Issuance  net of  investment
        banking  fees,  legal fees,  accountants&#146;  fees,  underwriting  discounts and
        commissions and other customary fees and expenses actually incurred by such Person
        in connection with such Equity Issuance.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Note</B>&#148;   means   a
        Revolving Note, a Bid Rate Note or a Swingline Note.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Notice     of
        Borrowing</B>&#148; means a notice in the form of Exhibit C to be delivered to the
        Agent pursuant to Section  2.1.(b)  evidencing the  Borrower&#146;s  request for a
        borrowing of Revolving Loans.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Notice     of
        Continuation</B>&#148;  means a notice in the form of Exhibit D to be delivered to
        the Agent pursuant to Section 2.9. evidencing the Borrower&#146;s  request for the
        Continuation of a LIBOR Loan.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Notice     of
        Conversion</B>&#148;  means a notice in the form of Exhibit&#160;E to be delivered
        to the Agent pursuant to Section 2.10. evidencing the Borrower&#146;s  request for
        the Conversion of a Loan from one Type to another Type.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Notice     of
        Swingline  Borrowing</B>&#148;  means a  notice  in the  form of  Exhibit  F to be
        delivered to the Agent  pursuant to Section 2.3.  evidencing  the  Borrower&#146;s
        request for a borrowing of Swingline Loans.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Obligations</B>&#148;
        means, individually and collectively:  (a) the aggregate principal balance of, and
        all accrued and unpaid interest on, all Loans; (b) all  Reimbursement  Obligations
        and all  other  Letter  of Credit  Liabilities;  and (c) all  other  indebtedness,
        liabilities,  obligations, covenants and duties of the Borrower and the other Loan
        Parties  owing to the Agent or any Lender of every kind,  nature and  description,
        under  or in  respect  of  this  Agreement  or any of the  other  Loan  Documents,
        including, without limitation, the Fees and indemnification  obligations,  whether
        direct  or  indirect,  absolute  or  contingent,  due or not due,  contractual  or
        tortious,  liquidated  or  unliquidated,  and  whether  or  not  evidenced  by any
        promissory note.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Participant</B>&#148;
        has the meaning given that term in Section 12.5.(c).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>PBGC</B>&#148;
        means the Pension Benefit Guaranty Corporation and any successor agency.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Permitted
        Liens</B>&#148; means, as to any Person: (a) Liens securing taxes, assessments and
        other charges or levies imposed by any Governmental  Authority (excluding any Lien
        imposed  pursuant to any of the provisions of ERISA) or the claims of materialmen,
        mechanics,  carriers,  warehousemen or landlords for labor, materials, supplies or
        rentals  incurred in the ordinary  course of  business,  which are not at the time
        required to be paid or  discharged  under Section  7.5.;  (b) Liens  consisting of
        deposits or pledges made, in the ordinary course of business, in
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        connection  with,  or  to  secure  payment  of,  obligations  under  workers&#146;
        compensation,  unemployment  insurance  or  similar  Applicable  Laws;  (c)  Liens
        consisting of encumbrances in the nature of zoning  restrictions,  easements,  and
        rights  or  restrictions  of  record  on the use of real  property,  which  do not
        materially  detract  from the value of such  property or impair the use thereof in
        the business of such Person;  and (d) Liens, if any, in favor of the Agent for the
        benefit of the Lenders.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Person</B>&#148;
        means  an  individual,   corporation,   partnership,  limited  liability  company,
        association,  trust or unincorporated organization,  or a government or any agency
        or political subdivision thereof.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Plan</B>&#148;
        means at any time an employee  pension  benefit  plan (other than a  Multiemployer
        Plan)  which is covered by Title IV of ERISA or  subject  to the  minimum  funding
        standards  under  Section  412 of the  Internal  Revenue  Code and  either  (a) is
        maintained,  or contributed  to, by any member of the ERISA Group for employees of
        any member of the ERISA  Group or (b) has at any time  within the  preceding  five
        years been  maintained,  or contributed to, by any Person which was at such time a
        member of the ERISA  Group for  employees  of any Person  which was at such time a
        member of the ERISA Group.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Post-Default
        Rate</B>&#148;  means,  in  respect  of any  principal  of any  Loan or any  other
        Obligation that is not paid when due (whether at stated maturity, by acceleration,
        by optional or mandatory  prepayment or otherwise),  a rate per annum equal to the
        Base Rate as in effect from time to time  <U>plus</U>  the  Applicable  Margin for
        Base Rate Loans <U>plus</U> four percent (4.0%).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Preferred
        Equity Interests</B>&#148;  means, with respect to any Person, Equity Interests in
        such Person which are  entitled to  preference  or priority  over any other Equity
        Interest in such Person in respect of the payment of dividends or  distribution of
        assets upon liquidation or both.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Prime
        Rate</B>&#148;  means the rate of  interest  per annum  announced  publicly by the
        Lender acting as the Agent as its prime rate from time to time.  The Prime Rate is
        not  necessarily  the best or the lowest  rate of  interest  offered by the Lender
        acting as the Agent or any other Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Principal
        Office</B>&#148;  means the office of the Agent  located at One  Wachovia  Center,
        Charlotte,  North  Carolina,  or such  other  office of the Agent as the Agent may
        designate from time to time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Property</B>&#148;
        means any parcel of real property,  together with all improvements thereon,  owned
        or leased pursuant to a Ground Lease by the Borrower or any Subsidiary.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rating
        Agency</B>&#148; means S&amp;P, Moody&#146;s or Fitch.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Real
        Property Value</B>&#148;  means the annualized Gross Lease Revenues as of the last
        day of the fiscal quarter of the Borrower most recently ended of all Properties in
        place  at  the  end  of  such  fiscal   quarter   <U>divided</U>   <U>by</U>   the
        Capitalization Rate.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Register</B>&#148;
        has the meaning given that term in Section 12.5.(f).
        </FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Regulatory
        Change</B>&#148; means, with respect to any Lender, any change effective after the
        Agreement Date in Applicable Law (including  without  limitation,  Regulation D of
        the Board of  Governors of the Federal  Reserve  System) or the adoption or making
        after such date of any interpretation, directive or request applying to a class of
        banks,  including  such  Lender,  of or under any  Applicable  Law (whether or not
        having the force of law and  whether or not failure to comply  therewith  would be
        unlawful) by any  Governmental  Authority or monetary  authority  charged with the
        interpretation  or  administration  thereof or  compliance  by any Lender with any
        request or directive regarding capital adequacy.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Reimbursement
        Obligation</B>&#148;  means the absolute, unconditional and irrevocable obligation
        of the Borrower to reimburse the Agent for any drawing  honored by the Agent under
        a Letter of Credit.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>REIT</B>&#148;
        means  a  Person  qualifying  for  treatment  as a  &#147;real  estate  investment
        trust&#148; under the Internal Revenue Code.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Requisite
        Lenders</B>&#148;  means,  as of any date,  Lenders having at least 66-2/3% of the
        aggregate  amount of the Commitments  (not held by Defaulting  Lenders who are not
        entitled to vote), or, if the Commitments have been terminated or reduced to zero,
        Lenders  holding  at  least  66-2/3%  of the  principal  amount  of the  aggregate
        outstanding Loans and Letter of Credit Liabilities (not held by Defaulting Lenders
        who are not entitled to vote).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Responsible
        Officer</B>&#148;  means with respect to the Borrower or any Subsidiary, the chief
        executive officer,  the chief financial officer and the chief operating officer of
        the Borrower or such Subsidiary.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Restricted
        Payment</B>&#148;  means:  (a) any  dividend  or  other  distribution,  direct  or
        indirect,  on account of any Equity Interest of the Borrower or any Subsidiary now
        or hereafter outstanding,  except a dividend payable solely in Equity Interests of
        identical  class to the holders of that  class;  (b) any  redemption,  conversion,
        exchange,   retirement,  sinking  fund  or  similar  payment,  purchase  or  other
        acquisition for value, direct or indirect,  of any Equity Interest of the Borrower
        or any  Subsidiary  now or  hereafter  outstanding;  and (c) any  payment  made to
        retire, or to obtain the surrender of, any outstanding warrants,  options or other
        rights to acquire any Equity  Interests of the Borrower or any  Subsidiary  now or
        hereafter outstanding.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Revolving
        Loan</B>&#148;  means a loan made by a Lender to the Borrower  pursuant to Section
        2.1.(a).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Revolving
        Note</B>&#148; has the meaning given that term in Section 2.11.(a).
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Secured
        Debt</B>&#148; means, with respect to a Person as of any given date, the aggregate
        principal  amount of all Debt of such Person  outstanding at such date and that is
        secured in any manner by a Mortgage or any other Lien.
        </FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Securities
        Act</B>&#148;  means the  Securities  Act of 1933,  as amended  from time to time,
        together with all rules and regulations issued thereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Solvent</B>&#148;
        means, when used with respect to any Person,  that (a) the fair value and the fair
        salable  value of its assets  (excluding  any Debt due from any  affiliate of such
        Person)  are  each in  excess  of the  fair  valuation  of its  total  liabilities
        (including all contingent liabilities computed at the amount which, in light of
        all the facts and circumstances  existing at such time, represents the amount that
        could reasonably be expected to become an actual and matured  liability);  (b)
        such Person is able to pay its debts or other  obligations in the ordinary  course
        as they mature; and (c) such Person has capital not unreasonably small to carry on
        its business and all business in which it proposes to be engaged.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>S&amp;P</B>&#148; means Standard
        &amp; Poor&#146;s Rating Services,  a division of The McGraw-Hill  Companies,  Inc. and its
        successors.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Stated
        Amount</B>&#148;  means the amount available to be drawn by a beneficiary  under a
        Letter of Credit  from time to time,  as such amount may be  increased  or reduced
        from time to time in accordance with the terms of such Letter of Credit.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Subsidiary</B>&#148;
        means, for any Person,  any  corporation,  partnership or other entity of which at
        least a majority of the  securities  or other  ownership  interests  having by the
        terms thereof  ordinary voting power to elect a majority of the board of directors
        or other persons performing similar functions of such corporation,  partnership or
        other entity (without regard to the occurrence of any  contingency) is at the time
        directly  or  indirectly  owned  or  controlled  by  such  Person  or one or  more
        Subsidiaries of such Person or by such Person and one or more Subsidiaries of such
        Person,  and shall include all Persons the accounts of which are consolidated with
        those of such Person pursuant to GAAP. Commercial Net Lease Realty Services,  Inc.
        and its Subsidiaries shall be deemed to be Subsidiaries of the Borrower.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Swap
        Agreement</B>&#148;  has the meaning given the term &#147;swap agreement&#148;  in
        11 U.S.C. &#167;101, as in effect on the Agreement Date.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Swap
        Termination Value</B>&#148;  means, in respect of any one or more Swap Agreements,
        after taking into account the effect of any legally  enforceable netting agreement
        relating to such Swap Agreements,  (a) for any date on or after the date such Swap
        Agreements have been closed out and termination  value(s) determined in accordance
        therewith,  such  termination  value(s),  and (b) for any  date  prior to the date
        referenced in clause (a) the amount(s)  determined as the mark-to-market  value(s)
        for such Swap Agreements, as determined based upon one or more mid-market or other
        readily  available  quotations  provided  by any  recognized  dealer  in such Swap
        Agreements (which may include the Agent or any Lender).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Swingline
        Commitment</B>&#148;   means  the  Swingline  Lender&#146;s   obligation  to  make
        Swingline  Loans  pursuant to Section 2.3. in an amount up to, but not  exceeding,
        $10,000,000,  as such amount may be reduced from time to time in  accordance  with
        the terms hereof.
        </FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Swingline
        Lender</B>&#148;  means Wachovia  Bank,  National  Association,  together with its
        respective successors and assigns.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Swingline
        Loan</B>&#148;  means a loan made by the Swingline Lender to the Borrower pursuant
        to Section 2.3.(a).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Swingline
        Note</B>&#148;  means the promissory note of the Borrower  payable to the order of
        the  Swingline  Lender in a principal  amount equal to the amount of the Swingline
        Commitment as originally in effect and otherwise duly completed,  substantially in
        the form of Exhibit G.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Tangible  Net
        Worth</B>&#148;  means total  stockholders&#146;  equity of the  Borrower  and its
        Subsidiaries  determined  in accordance  with GAAP,  <U>plus</U>  (a)  accumulated
        depreciation  and  amortization to the extent  reflected in the  determination  of
        stockholders&#146; equity of the Borrower and its Subsidiaries,
        <U>plus</U>  (b) the accumulated  principal  component of all payments made to the
        Borrower and its Subsidiaries in respect of Finance Leases to the extent reflected
        in the  determination  of  stockholders&#146;  equity  of  the  Borrower  and  its
        Subsidiaries, <U>minus</U> (c) the aggregate value of all intangible assets of the
        Borrower and its Subsidiaries.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Taxes</B>&#148;
        has the meaning given that term in Section 3.12.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Termination
        Date</B>&#148; means May 9, 2006, or such later date to which the Termination Date
        may be extended pursuant to Section 2.12.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Titled
        Agents</B>&#148;  means  each  of the  Arranger,  the  Syndication  Agent  and the
        Documentation Agent and their respective successors and permitted assigns.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Total
        Assets</B>&#148;  means (without duplication): (a) Real Property Value <U>plus</U>
        (b) 50.0% of the undepreciated  cost of Properties that are developed but that are
        unleased and vacant <U>plus</U> (c) the book value of all other tangible assets of
        the  Borrower  and its  Subsidiaries  less (d) cash  and cash  equivalents  of the
        Borrower and its Subsidiaries the disposition of which is restricted in any way.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Total
        Liabilities</B>&#148;  means  the  total  liabilities  of  the  Borrower  and  its
        Subsidiaries  (including,  without limitation,  all obligations or indebtedness of
        any other Person which the Borrower or any Subsidiary has assumed,  guaranteed, or
        endorsed or in connection  with which the Borrower or any Subsidiary has otherwise
        become directly or contingently  liable and the amount of any outstanding  Letters
        of Credit) computed in accordance with GAAP.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Type</B>&#148;
        with respect to any Revolving Loan, refers to whether such Loan is a LIBOR Loan or
        Base Rate Loan.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unconsolidated
        Affiliate</B>&#148;  means,  with respect to any Person,  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.
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-20-</FONT></TD></TR>
</TABLE>


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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unencumbered
        Asset Value</B>&#148; means the sum (without duplication) of (a) the Real Property
        Value of all Unencumbered  Assets which are not Excluded  Assets;  <U>plus</U> (b)
        aggregate book value of all Eligible Mortgage Notes  Receivable;  <U>provided</U>,
        <U>however</U>,  that if the  aggregate  book  value of  Eligible  Mortgage  Notes
        Receivable  exceeds  15.0% of Total Assets,  the value of such  Eligible  Mortgage
        Notes  Receivable  in excess of 15.0% of Total  Assets  shall be  excluded  in the
        determination of Unencumbered  Asset Value  hereunder;  <U>plus</U> (c) all of the
        Borrower&#146;s and Guarantors&#146;  cash and cash equivalents  (excluding tenant
        deposits  and  other  cash  and  cash  equivalents  the  disposition  of  which is
        restricted  in any way);  <U>provided</U>,  <U>however</U>,  that if the aggregate
        value of such cash and cash equivalents exceeds 2.0% of Total Assets, the value of
        such cash and cash equivalents in excess of 2.0% of Total Assets shall be excluded
        in the determination of Unencumbered  Asset Value hereunder;  all as determined in
        accordance with GAAP.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unencumbered
        Assets</B>&#148;  means,  collectively,  each  Property  of  the  Borrower  or any
        Guarantor which meets the following criteria: (a) the Property is owned, or leased
        under a Ground  Lease,  entirely by the Borrower  and/or a Guarantor;  (b) neither
        such  Property,  nor any interest of the Borrower or such  Guarantor  therein,  is
        subject to any Lien (other than Permitted  Liens of the types described in clauses
        (a) through (c) of the definition  thereof) or to any Negative Pledge;  and (c) if
        such Property is owned or leased by Person other than the Borrower (i) none of the
        Borrower&#146;s direct or indirect ownership interest in such Person is subject to
        any Lien (other than Permitted Liens of the types described in clauses (a) through
        (c) of the definition  thereof) or to any Negative  Pledge;  and (ii) the Borrower
        directly, or indirectly through a Subsidiary,  has the right to take the following
        actions  without  the need to  obtain  the  consent  of any  Person:  (x) to sell,
        transfer or  otherwise  dispose of such  Property and (y) to create a Lien on such
        Property as security for Debt of the Borrower or such Guarantor, as applicable.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unfunded
        Liabilities</B>&#148;  means, with respect to any Plan at any time, the amount (if
        any) by which (a) the value of all benefit liabilities under such Plan, determined
        on a plan  termination  basis  using the  assumptions  prescribed  by the PBGC for
        purposes of Section  4044 of ERISA,  exceeds (b) the fair market value of all Plan
        assets  allocable  to such  liabilities  under  Title IV of ERISA  (excluding  any
        accrued  but unpaid  contributions),  all  determined  as of the then most  recent
        valuation date for such Plan, but only to the extent that such excess represents a
        potential liability of a member of the ERISA Group to the PBGC or any other Person
        under Title IV of ERISA.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unsecured
        Debt</B>&#148; means, with respect to a Person as of any given date, the aggregate
        principal  amount of all Debt of such Person  outstanding at such date and that is
        not Secured Debt.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>UPREIT</B>&#148;
        means a limited  partnership  which is a Subsidiary of the Borrower  formed by the
        Borrower to function as an umbrella partnership REIT and which becomes a Guarantor
        hereunder pursuant to Section 7.11.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Wachovia</B>&#148;
        means  Wachovia  Bank,  National  Association  together  with its  successors  and
        assigns.
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-21-</FONT></TD></TR>
</TABLE>


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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Wholly  Owned
        Subsidiary</B>&#148;  means any  Subsidiary of a Person in respect of which all of
        the equity  securities or other ownership  interests (other than, in the case of a
        corporation,  directors&#146;  qualifying  shares)  are at the  time  directly  or
        indirectly owned or controlled by such Person or one or more other Subsidiaries of
        such Person or by such Person and one or more other Subsidiaries of such Person.
        <BR><BR></FONT></P></TD></TR>

<!--Section 1.2 General; References to Times-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 1.2.&nbsp;&nbsp;&nbsp;&nbsp;General; References to Times.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless       otherwise
        indicated,  all accounting terms,  ratios and measurements shall be interpreted or
        determined in accordance with GAAP consistently applied;  provided that, if at any
        time any change in GAAP would affect the  computation  of any  financial  ratio or
        requirement  set  forth in any Loan  Document,  and  either  the  Borrower  or the
        Requisite Lenders shall so request,  the Agent, the Lenders and the Borrower shall
        negotiate  in good  faith to amend  such  ratio or  requirement  to  preserve  the
        original  intent  thereof in light of such change in GAAP (subject to the approval
        of the Requisite Lenders); provided further that, until so amended, (i) such ratio
        or requirement shall continue to be computed in accordance with GAAP prior to such
        change  therein and (ii) the Borrower  shall  provide to the Agent and the Lenders
        financial  statements  and other  documents  required  under this  Agreement or as
        reasonably requested hereunder setting forth a reconciliation between calculations
        of such ratio or requirement made before and after giving effect to such change in
        GAAP. References in this Agreement to &#147;Sections&#148;,  &#147;Articles&#148;,
        &#147;Exhibits&#148; and &#147;Schedules&#148; are to sections, articles, exhibits
        and schedules  herein and hereto unless  otherwise  indicated.  References in this
        Agreement to any document, instrument or agreement (a) shall include all exhibits,
        schedules  and  other  attachments  thereto,  (b)  shall  include  all  documents,
        instruments or agreements issued or executed in replacement thereof, to the extent
        permitted  hereby and (c) shall mean such  document,  instrument or agreement,  or
        replacement  or  predecessor  thereto,  as  amended,  supplemented,   restated  or
        otherwise  modified  as of the  date  of  this  Agreement  and  from  time to time
        thereafter  to the extent not  prohibited  hereby and in effect at any given time.
        Wherever from the context it appears  appropriate,  each term stated in either the
        singular or plural shall include the singular and plural,  and pronouns  stated in
        the masculine, feminine or neuter gender shall include the masculine, the feminine
        and the neuter.  Unless  explicitly  set forth to the  contrary,  a  reference  to
        &#147;Subsidiary&#148;  means a Subsidiary of the Borrower or a Subsidiary of such
        Subsidiary  and a reference  to an  &#147;Affiliate&#148;  means a reference to an
        Affiliate of the Borrower. Titles and captions of Articles, Sections,  subsections
        and clauses in this  Agreement  are for  convenience  only,  and neither limit nor
        amplify  the  provisions  of  this  Agreement.  Unless  otherwise  indicated,  all
        references to time are references to Charlotte, North Carolina time.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE II-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE II. &nbsp;&nbsp;CREDIT FACILITY</B>
        <BR><BR></FONT></P></TD></TR>

<!--Section 2.1 Revolving Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.1.&nbsp;&nbsp;&nbsp;&nbsp;Revolving Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Generally</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions  hereof,  during the
        period from the Effective Date to but excluding the Termination  Date, each Lender
        severally  and not jointly  agrees to make  Revolving  Loans to the Borrower in an
        aggregate  principal  amount at any one time outstanding up to, but not exceeding,
        the amount of such  Lender&#146;s  Commitment.  Subject to the terms and  conditions of
        this Agreement, during the period from the Effective Date to but
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-22-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        excluding  the  Termination  Date,  the  Borrower  may borrow,  repay and reborrow
        Revolving Loans hereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Requesting Revolving Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall give the Agent notice  pursuant to a
        Notice of Borrowing or  telephonic  notice of each  borrowing of Revolving  Loans.
        Each Notice of Borrowing  shall be delivered to the Agent before 10:00 a.m. (i) in
        the case of LIBOR  Loans,  on the date three  Business  Days prior to the proposed
        date of such  borrowing  and (ii) in the case of Base Rate Loans,  on the date one
        Business Day prior to the proposed  date of such  borrowing.  Any such  telephonic
        notice  shall  include all  information  to be  specified  in a written  Notice of
        Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a
        Notice of Borrowing sent to the Agent by telecopy on the same day of the giving of
        such  telephonic  notice.  The Agent  will  transmit  by  telecopy  the  Notice of
        Borrowing  (or the  information  contained  in such Notice of  Borrowing)  to each
        Lender promptly upon receipt by the Agent.  Each Notice of Borrowing or telephonic
        notice of each  borrowing  shall be  irrevocable  once  given and  binding  on the
        Borrower.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disbursements of Revolving Loan Proceeds</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;No later  than 1:00 p.m.  on the date  specified  in the
        Notice of  Borrowing,  each  Lender  will make  available  for the  account of its
        applicable  Lending  Office to the Agent at the Principal  Office,  in immediately
        available  funds,  the proceeds of the  Revolving  Loan to be made by such Lender.
        With respect to Revolving  Loans to be made after the Effective  Date,  unless the
        Agent  shall have been  notified  by any  Lender  prior to the  specified  date of
        borrowing  that such  Lender  does not intend to make  available  to the Agent the
        Revolving  Loan to be made by such Lender on such date,  the Agent may assume that
        such Lender will make the proceeds of such  Revolving  Loan available to the Agent
        on the date of the requested borrowing as set forth in the Notice of Borrowing and
        the Agent may (but shall not be obligated  to), in reliance upon such  assumption,
        make available to the Borrower the amount of such Revolving Loan to be provided by
        such Lender.  Subject to  satisfaction  of the applicable  conditions set forth in
        Article V. for such borrowing,  the Agent will make the proceeds of such borrowing
        available  to the  Borrower no later than 2:00 p.m. on the date and at the account
        specified by the Borrower in such Notice of Borrowing.
        <BR><BR></FONT></P></TD></TR>

<!--Section 2.2 Bid Rate Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.2.&nbsp;&nbsp;&nbsp;&nbsp;Bid Rate Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bid Rate Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;So long as the Borrower  maintains an  Investment  Grade
        Rating,  in addition to  borrowings  of  Revolving  Loans,  at any time during the
        period from the Effective Date to but excluding the Termination  Date the Borrower
        may, as set forth in this Section,  request the Lenders to make offers to make Bid
        Rate  Loans to the  Borrower  in  Dollars.  The  Lenders  may,  but shall  have no
        obligation to, make such offers and the Borrower may, but shall have no obligation
        to, accept any such offers in the manner set forth in this Section.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Requests for Bid Rate Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;When  the  Borrower  wishes to  request  from the  Lenders
        offers to make Bid Rate Loans,  it shall give the Agent notice (a  &#147;Bid  Rate
        Quote  Request&#148;)  so as to be  received  no later than 10:00 a.m.  on (x) the
        Business Day immediately  preceding the date of borrowing proposed therein, in the
        case of an Absolute  Rate Auction and (y) the date four Business Days prior to the
        proposed  date of  borrowing,  in the case of a LIBOR  Auction.  The  Agent  shall
        deliver to each Lender a copy of each Bid Rate Quote Request promptly upon receipt
        thereof by the Agent. The Borrower may request offers to make Bid Rate
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-23-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Loans  for up to three  (3)  different  Interest  Periods  in each Bid Rate  Quote
        Request;  provided  that the request for each  separate  Interest  Period shall be
        deemed to be a  separate  Bid Rate  Quote  Request  for a  separate  borrowing  (a
        &#147;Bid   Rate   Borrowing&#148;).   Each  Bid  Rate  Quote   Request  shall  be
        substantially  in the form of  Exhibit  H and  shall  specify  as to each Bid Rate
        Borrowing:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;the proposed date of such Bid Rate Borrowing, which shall
        be a Business Day;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;the aggregate amount of such Bid Rate Borrowing, which (x)
        shall be in the minimum amount of $10,000,000 and integral multiples of $1,000,000
        and (y) shall not  cause  any of the  limits  specified  in  Section  2.16.  to be
        violated;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
        &nbsp;&nbsp;&nbsp;&nbsp;whether the Bid Rate Quote  Request is for LIBOR  Margin
        Loans or Absolute Rate Loans; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
        &nbsp;&nbsp;&nbsp;&nbsp;the duration of the Interest Period applicable  thereto,
        which shall not extend beyond the Termination Date.

        <BR><BR></FONT></P></TD></TR>
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Except as otherwise  provided in this  subsection  (b), no Bid Rate Quote  Request
        shall be given  within  five  Business  Days (or such other  number of days as the
        Borrower and the Agent, with the consent of the Requisite  Lenders,  may agree) of
        the giving of any other Bid Rate Quote Request.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bid Rate Quotes</U>.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)

        &nbsp;&nbsp;&nbsp;&nbsp;Each  Lender may submit one or more Bid Rate Quotes,  each
        containing  an offer to make a Bid Rate  Loan in  response  to any Bid Rate  Quote
        Request;  provided  that, if the  Borrower&#146;s  request  under Section  2.2.(b)
        specified more than one Interest Period,  such Lender may make a single submission
        containing  one or more Bid Rate Quotes for each such  Interest  Period.  Each Bid
        Rate  Quote  must be  submitted  to the Agent not later  than  10:00  a.m.  on the
        proposed  date of  borrowing;  provided  that the Lender  then acting as Agent may
        submit a Bid Rate Quote only if it notifies the Borrower of the terms of the offer
        contained  therein  not  later  than 9:45 a.m.  (x) on the  proposed  date of such
        borrowing,  in the case of an  Absolute  Rate  Auction  and (y) on the date  three
        Business  Days prior to the  proposed  date of  borrowing,  in the case of a LIBOR
        Auction.  Subject  to  Articles  V. and X.,  any Bid Rate  Quote so made  shall be
        irrevocable  except  with the  consent  of the Agent  given at the  request of the
        Borrower. Any Bid Rate Loan may be funded by a Lender&#146;s Designated Lender (if
        any) as provided in Section 12.5.(e), however such Lender shall not be required to
        specify  in its Bid Rate Quote  whether  such Bid Rate Loan will be funded by such
        Designated Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)

        &nbsp;&nbsp;&nbsp;&nbsp;Each  Bid Rate Quote shall be substantially in the form of
        Exhibit I and shall specify:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=16%></TD>
        <TD WIDTH=84%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)

        &nbsp;&nbsp;&nbsp;&nbsp;the proposed date of borrowing and the Interest Period therefor;
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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</TABLE>


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                                            <!--Page 25-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=16%></TD>
        <TD WIDTH=84%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)

        &nbsp;&nbsp;&nbsp;&nbsp;the  principal  amount of the Bid Rate Loan for which each
        such offer is being made;  provided that the aggregate principal amount of all Bid
        Rate Loans for which a Lender  submits  Bid Rate Quotes (x) may be greater or less
        than the  Commitment of such Lender but (y) shall not exceed the principal  amount
        of the Bid Rate Borrowing for a particular  Interest  Period for which offers were
        requested;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)

        &nbsp;&nbsp;&nbsp;&nbsp;in the case of an  Absolute  Rate  Auction,  the rate of
        interest per annum (rounded upwards,  if necessary,  to the nearest  1/10,000th of
        1%) offered for each such Bid Rate Loan (the &#147;Absolute Rate&#148;);
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)

        &nbsp;&nbsp;&nbsp;&nbsp;in  the case of a LIBOR Auction, the margin above or below
        applicable LIBOR (the &#147;LIBOR Margin&#148;) offered for each such LIBOR Margin
        Loan,  expressed as a percentage  (rounded upwards,  if necessary,  to the nearest
        1/1,000th of 1%) to be added to (or subtracted from) the applicable LIBOR; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)

        &nbsp;&nbsp;&nbsp;&nbsp;the identity of the quoting Lender.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Unless  otherwise  agreed by the Agent and the  Borrower,  no Bid Rate Quote shall
        contain qualifying, conditional or similar language or propose terms other than or
        in addition to those set forth in the  applicable  Bid Rate Quote  Request and, in
        particular,  no Bid Rate Quote may be conditioned  upon acceptance by the Borrower
        of all (or some  specified  minimum) of the principal  amount of the Bid Rate Loan
        for which such Bid Rate Quote is being made.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notification by Agent</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Agent shall, as promptly as practicable after the Bid
        Rate  Quotes are  submitted  (but in any event not later  than  10:30 a.m.  on the
        proposed date of borrowing),  notify the Borrower of the terms (i) of any Bid Rate
        Quote submitted by a Lender that is in accordance with Section 2.2.(c) and (ii) of
        any Bid Rate Quote that  amends,  modifies  or is  otherwise  inconsistent  with a
        previous Bid Rate Quote submitted by such Lender with respect to the same Bid Rate
        Quote  Request.  Any such  subsequent  Bid Rate Quote shall be  disregarded by the
        Agent  unless  such  subsequent  Bid Rate Quote is  submitted  solely to correct a
        manifest  error in such  former Bid Rate  Quote.  The  Agent&#146;s  notice to the
        Borrower  shall  specify  (A) the  aggregate  principal  amount  of the  Bid  Rate
        Borrowing for which offers have been  received and (B) the  principal  amounts and
        Absolute  Rates or  LIBOR  Margins,  as  applicable,  so  offered  by each  Lender
        (identifying the Lender that made each Bid Rate Quote).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceptance by Borrower</U>.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)

        &nbsp;&nbsp;&nbsp;&nbsp;Not later than 11:00 a.m.  (x) on the  proposed  date of
        borrowing,  in the case of an  Absolute  Rate  Auction  and (y) on the date  three
        Business  Days prior to the  proposed  date of  borrowing,  in the case of a LIBOR
        Auction, the Borrower shall notify the Agent of its acceptance or nonacceptance of
        the offers so notified to it pursuant to Section  2.2.(d) which notice shall be in
        the form of Exhibit J. In the case of  acceptance,  such notice shall  specify the
        aggregate  principal  amount of offers for each Interest Period that are accepted.
        The failure of the Borrower to give such notice by such time shall
        </FONT></P></TD></TR>

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        constitute  nonacceptance.  The Agent shall promptly notify each affected  Lender.
        The Borrower may accept any Bid Rate Quote in whole or in part; provided that:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=16%></TD>
        <TD WIDTH=84%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)

        &nbsp;&nbsp;&nbsp;&nbsp;the aggregate principal amount of each Bid Rate Borrowing
        may not  exceed the  applicable  amount  set forth in the  related  Bid Rate Quote
        Request;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)

        &nbsp;&nbsp;&nbsp;&nbsp;the aggregate principal amount of each Bid Rate Borrowing
        shall not cause the limits specified in Section 2.16. to be violated;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)

        &nbsp;&nbsp;&nbsp;&nbsp;acceptance of offers may be made only in ascending order
        of Absolute Rates or LIBOR Margins, as applicable, in each case beginning with the
        lowest rate so offered;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)

        &nbsp;&nbsp;&nbsp;&nbsp;the Borrower may not accept any Bid Rate Quote that fails
        to comply with Section 2.2.(c) or otherwise fails to comply with the  requirements
        of this Agreement); and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)

        &nbsp;&nbsp;&nbsp;&nbsp;any  acceptance  in part  shall be in a minimum  amount of
        $5,000,000 and integral multiples of $1,000,000 in excess thereof.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)

        &nbsp;&nbsp;&nbsp;&nbsp;If offers are made by two or more  Lenders with the same
        Absolute Rates or LIBOR Margins, as applicable,  for a greater aggregate principal
        amount than the amount in respect of which offers are permitted to be accepted for
        the related Interest Period,  the principal amount of Bid Rate Loans in respect of
        which such offers are accepted  shall be allocated by the Agent among such Lenders
        in proportion to the aggregate principal amount of such offers.  Determinations by
        the Agent of the amounts of Bid Rate Loans shall be  conclusive  in the absence of
        manifest error.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Obligation to Make Bid Rate Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Agent shall promptly (and in any event not later than
        (x) 12:00 noon on the proposed date of borrowing of Absolute Rate Loans and (y) on
        the date three  Business  Days prior to the  proposed  date of  borrowing of LIBOR
        Margin  Loans)  notify each Lender whose Bid Rate Quote has been  accepted and the
        amount and rate  thereof.  A Lender who is notified  that it has been  selected to
        make a Bid Rate Loan may designate its Designated Lender (if any) to fund such Bid
        Rate Loan on its behalf, as described in Section  12.5.(e).  Any Designated Lender
        which funds a Bid Rate Loan shall on and after the time of such funding become the
        obligee under such Bid Rate Loan and be entitled to receive  payment  thereof when
        due. No Lender shall be relieved of its obligation to fund a Bid Rate Loan, and no
        Designated  Lender shall assume such obligation,  prior to the time the applicable
        Bid Rate Loan is funded. Any Lender whose offer to make any Bid Rate Loan has been
        accepted  shall,  not later than 1:30 p.m. on the date specified for the making of
        such Loan,  make the amount of such Loan  available to the Agent at its  Principal
        Office in immediately available funds, for the account of the Borrower. The amount
        so  received  by the Agent  shall,  subject  to the terms and  conditions  of this
        Agreement,  be made available to the Borrower no later than 2:00 p.m. on such date
        by  depositing  the same, in  immediately  available  funds,  in an account of the
        Borrower designated by the Borrower.
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Effect on Commitment</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Except  for the purpose and to the extent expressly stated
        in  Section 2.14.  the  amount of any Bid Rate Loan  made by any  Lender  shall not
        constitute a utilization of such Lender&#146;s Commitment.
        <BR><BR></FONT></P></TD></TR>

<!--Section 2.3 Swingline Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.3.&nbsp;&nbsp;&nbsp;&nbsp;Swingline Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Swingline Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions  hereof,  during the
        period  from  the  Effective  Date to but  excluding  the  Termination  Date,  the
        Swingline  Lender agrees to make  Swingline  Loans to the Borrower in an aggregate
        principal amount at any one time outstanding up to, but not exceeding,  the amount
        of the Swingline Commitment.  If at any time the aggregate principal amount of the
        Swingline  Loans  outstanding  at such time exceeds the  Swingline  Commitment  in
        effect at such time, the Borrower shall  immediately pay the Agent for the account
        of the  Swingline  Lender  the  amount of such  excess.  Subject  to the terms and
        conditions  of this  Agreement,  the  Borrower  may  borrow,  repay  and  reborrow
        Swingline Loans hereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Procedure for Borrowing Swingline Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall  give the Agent  and the  Swingline
        Lender notice pursuant to a Notice of Swingline  Borrowing or telephonic notice of
        each borrowing of a Swingline  Loan.  Each Notice of Swingline  Borrowing shall be
        delivered to the Swingline  Lender no later than 3:00 p.m. on the proposed date of
        such borrowing. Any such notice given telephonically shall include all information
        to be specified in a written  Notice of Swingline  Borrowing and shall be promptly
        confirmed in writing by the Borrower  pursuant to a Notice of Swingline  Borrowing
        sent to the  Swingline  Lender by  telecopy  on the same day of the giving of such
        telephonic  notice.  On the date of the  requested  Swingline  Loan and subject to
        satisfaction  of the  applicable  conditions  set  forth  in  Article  V. for such
        borrowing,  the  Swingline  Lender will make the proceeds of such  Swingline  Loan
        available to the  Borrower in Dollars,  in  immediately  available  funds,  at the
        account  specified by the Borrower in the Notice of Swingline  Borrowing not later
        than 4:00 p.m. on such date.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interest</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Swingline  Loans  shall bear  interest at a per annum rate
        equal to the Base Rate  <U>plus</U> the Applicable  Margin for Base Rate Loans (or
        at such other rate or rates as the  Borrower  and the  Swingline  Lender may agree
        from time to time in writing).  Interest  payable on Swingline Loans is solely for
        the  account of the  Swingline  Lender  (except to the extent a Lender  acquires a
        participating  interest in a Swingline Loan pursuant to the immediately  following
        subsection  (e)).  All accrued and unpaid  interest  on  Swingline  Loans shall be
        payable on the dates and in the manner  provided in Section  2.5.  with respect to
        interest on Base Rate Loans (except as the  Swingline  Lender and the Borrower may
        otherwise agree in writing in connection with any particular Swingline Loan).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Swingline Loan Amounts, Etc</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each  Swingline  Loan shall be in the minimum  amount of
        $100,000 and integral multiples of $25,000 or such other minimum amounts agreed to
        by the Swingline Lender and the Borrower.  Any voluntary prepayment of a Swingline
        Loan must be in integral  multiples of $100,000 or the aggregate  principal amount
        of all  outstanding  Swingline Loans (or such other minimum amounts upon which the
        Swingline  Lender and the  Borrower  may agree)  and in  connection  with any such
        prepayment,  the Borrower  must give the  Swingline  Lender prior  written  notice
        thereof no later than 10:00 a.m. on the date of such
        </FONT></P></TD></TR>

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</TABLE>


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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        prepayment. The Swingline Loans shall, in addition to this Agreement, be evidenced
        by the Swingline Note.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Repayment and Participations of Swingline Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower  agrees to repay each  Swingline Loan within
        one  Business  Day of demand  therefor by the  Swingline  Lender and in any event,
        within  5   Business   Days  after  the  date  such   Swingline   Loan  was  made.
        Notwithstanding  the foregoing,  the Borrower  shall repay the entire  outstanding
        principal  amount of, and all accrued but unpaid  interest on, the Swingline Loans
        on the  Termination  Date (or such  earlier date as the  Swingline  Lender and the
        Borrower may agree in writing).  In lieu of demanding repayment of any outstanding
        Swingline  Loan from the  Borrower,  the  Swingline  Lender  may, on behalf of the
        Borrower  (which hereby  irrevocably  directs the  Swingline  Lender to act on its
        behalf),  request a  borrowing  of Base Rate Loans  from the  Lenders in an amount
        equal to the principal  balance of such Swingline Loan. The amount  limitations of
        Section  .5.(a) shall not apply to any  borrowing of Base Rate Loans made pursuant
        to this  subsection.  The  Swingline  Lender shall give notice to the Agent of any
        such  borrowing of Base Rate Loans not later than 12:00 noon on the proposed  date
        of such  borrowing and the Agent shall give prompt notice of such borrowing to the
        Lenders.  No later than 2:00 p.m. on such date, each Lender will make available to
        the  Agent at the  Principal  Office  for the  account  of  Swingline  Lender,  in
        immediately available funds, the proceeds of the Base Rate Loan to be made by such
        Lender.  The Agent shall pay the proceeds of such Base Rate Loans to the Swingline
        Lender,  which shall  apply such  proceeds to repay such  Swingline  Loan.  If the
        Lenders are prohibited from making Loans required to be made under this subsection
        for any reason, including without limitation,  the occurrence of any of the Events
        of Default described in Sections 10.1.(f) or 10.1.(g),  each Lender shall purchase
        from the Swingline Lender, without recourse or warranty, an undivided interest and
        participation to the extent of such  Lender&#146;s  Commitment  Percentage of such
        Swingline Loan, by directly  purchasing a participation  in such Swingline Loan in
        such amount  (regardless of whether the conditions  precedent thereto set forth in
        Section 5.2.  are then  satisfied,  whether or not the  Borrower  has  submitted a
        Notice of Borrowing  and whether or not the  Commitments  are then in effect,  any
        Event of  Default  exists or all the Loans have been  accelerated)  and paying the
        proceeds  thereof to the Agent for the account of the Swingline  Lender in Dollars
        and in immediately  available  funds. If such amount is not in fact made available
        to the Swingline  Lender by any Lender,  the Swingline Lender shall be entitled to
        recover such amount on demand from such  Lender,  together  with accrued  interest
        thereon for each day from the date of demand  thereof,  at the Federal Funds Rate.
        If such Lender does not pay such amount forthwith upon the Swingline Lender&#146;s
        demand  therefor,  and until such time as such Lender makes the required  payment,
        the  Swingline  Lender shall be deemed to continue to have  outstanding  Swingline
        Loans in the amount of such unpaid  participation  obligation  for all purposes of
        the Loan  Documents  (other than those  provisions  requiring the other Lenders to
        purchase a participation  therein).  Further,  such Lender shall be deemed to have
        assigned any and all payments made of principal and interest on its Loans, and any
        other amounts due to it hereunder, to the Swingline Lender to fund Swingline Loans
        in the amount of the  participation  in Swingline Loans that such Lender failed to
        purchase  pursuant  to this  Section  until such amount has been  purchased  (as a
        result of such assignment or otherwise).  A  Lender&#146;s  obligation to purchase
        such a participation in a Swingline Loan shall be absolute and  unconditional  and
        shall  not  be  affected  by  any  circumstance   whatsoever,   including  without
        limitation,  (i)&#160;any claim of setoff,  counterclaim,  recoupment,  defense or
        other right which such Lender or any other Person may have or claim
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        against the Agent, the Swingline Lender or any other Person  whatsoever,  (ii) the
        occurrence or  continuation  of a Default or Event of Default  (including  without
        limitation,  any of the  Defaults  or  Events of  Default  described  in  Sections
        10.1.(f) or 10.1.(g)) or the termination of any  Lender&#146;s  Commitment,  (iii)
        the  existence (or alleged  existence)  of an event or condition  which has had or
        could have a Material Adverse Effect,  (iv) any breach of any Loan Document by the
        Agent,  any Lender or the  Borrower or (v) any other  circumstance,  happening  or
        event whatsoever, whether or not similar to any of the foregoing.
        <BR><BR></FONT></P></TD></TR>

<!--Section 2.4 Letters of Credit-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.4.&nbsp;&nbsp;&nbsp;&nbsp;Letters of Credit.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Letters of Credit</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of this Agreement, the
        Agent,  on behalf of the Lenders,  agrees to issue for the account of the Borrower
        (or the  Borrower and any other Loan Party)  during the period from and  including
        the Effective  Date to, but excluding,  the date 30 days prior to the  Termination
        Date one or more standby letters of credit (each a &#147;Letter  of  Credit&#148;)
        up to a maximum  aggregate Stated Amount at any one time outstanding not to exceed
        the L/C Commitment  Amount.  The parties hereto agree that the Existing Letters of
        Credit shall be deemed to be Letters of Credit hereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Terms of Letters of Credit</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;At  the time of  issuance,  the  amount,  form,  terms and
        conditions of each Letter of Credit, and of any drafts or acceptances  thereunder,
        shall be  subject  to  approval  by the  Agent  and the  Borrower.  At the time of
        issuance  of each Letter of Credit,  the Agent and the  Borrower  shall  determine
        whether  such  Letter  of  Credit  will  be  subject  to  (x)  the  rules  of  the
        &#147;International  Standby  Practices  1998&#148;  published by the Institute of
        International  Banking Law &amp; Practice (or such later version thereof as may be
        in effect at the time of  issuance)  or (y) the Uniform  Customs and  Practice for
        Documentary Credits (1993 Revision), International Chamber of Commerce Publication
        No.  500 (or  such  later  version  thereof  as may be in  effect  at the  time of
        issuance).  Notwithstanding the foregoing, in no event may (i) the expiration date
        of any Letter of Credit  extend  beyond the  earlier of (A) the date one year from
        its date of  issuance  or (B) the  Termination  Date or (ii) any  Letter of Credit
        contain an automatic  renewal  provision (other than renewal  provisions which are
        automatic  in the absence of a notice of  non-renewal  from the Agent which may be
        given at least  once  during  any  12-month  period,  so long as any such  renewal
        provision  does  not  provide  for  a  renewal  period  that  extends  beyond  the
        Termination Date).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Requests for Issuance of Letters of Credit</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall give the Agent  written  notice (or
        telephonic notice promptly confirmed in writing) at least 3 Business Days prior to
        the requested  date of issuance of a Letter of Credit,  such notice to describe in
        reasonable  detail the  proposed  terms of such Letter of Credit and the nature of
        the transactions or obligations proposed to be supported by such Letter of Credit,
        and in any  event  shall set  forth  with  respect  to such  Letter of Credit  the
        proposed (i) Stated Amount,  (ii) the beneficiary,  and (iii) the expiration date.
        The  Borrower  shall also  execute and  deliver  such  customary  letter of credit
        application  forms as  requested  from  time to time by the  Agent.  Provided  the
        Borrower has given the notice  prescribed by the first sentence of this subsection
        and subject to the other terms and  conditions  of this  Agreement,  including the
        satisfaction of any applicable  conditions  precedent set forth in Article V., the
        Agent shall issue the requested Letter of Credit on the requested date of issuance
        for the benefit of the  stipulated  beneficiary.  Upon the written  request of the
        Borrower,  the Agent shall deliver to the Borrower a copy of each issued Letter of
        Credit within a reasonable time after
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        the date of  issuance  thereof.  To the  extent  any term of a  Letter  of  Credit
        Document is inconsistent  with a term of any Loan Document,  the term of such Loan
        Document shall control.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reimbursement Obligations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon receipt by the Agent from the beneficiary of a Letter
        of Credit of any demand for payment  under such Letter of Credit,  the Agent shall
        promptly  notify the Borrower of the amount to be paid by the Agent as a result of
        such  demand  and the date on  which  payment  is to be made by the  Agent to such
        beneficiary  in  respect  of such  demand;  <U>provided</U>,  <U>however</U>,  the
        Agent&#146;s  failure to give, or delay in giving, such notice shall not discharge
        the  Borrower in any respect from the  applicable  Reimbursement  Obligation.  The
        Borrower hereby  unconditionally  and irrevocably  agrees to pay and reimburse the
        Agent for the amount of each demand for payment  under such Letter of Credit on or
        prior to the date on which  payment is to be made by the Agent to the  beneficiary
        thereunder, without presentment,  demand, protest or other formalities of any kind
        (other than notice as provided in this  subsection).  Upon receipt by the Agent of
        any payment in respect of any Reimbursement  Obligation,  the Agent shall promptly
        pay to each  Lender that has  acquired a  participation  therein  under the second
        sentence of Section  2.4.(i)  such  Lender&#146;s  Commitment  Percentage  of such
        payment.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Manner of Reimbursement</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon  its  receipt  of  a  notice  referred  to  in  the
        immediately  preceding subsection (d), the Borrower shall advise the Agent whether
        or not the  Borrower  intends to borrow  hereunder  to finance its  obligation  to
        reimburse  the Agent for the amount of the related  demand for payment  and, if it
        does, the Borrower shall submit a timely request for such borrowing as provided in
        the applicable  provisions of this  Agreement.  If the Borrower fails to so advise
        the  Agent,  or if the  Borrower  fails to  reimburse  the Agent for a demand  for
        payment  under a Letter  of Credit  by the date of such  payment,  then (i) if the
        applicable conditions contained in Article V. would permit the making of Revolving
        Loans,  the  Borrower  shall be deemed to have  requested a borrowing of Revolving
        Loans  (which  shall  be  Base  Rate  Loans)  in an  amount  equal  to the  unpaid
        Reimbursement Obligation and the Agent shall give each Lender prompt notice of the
        amount of the Revolving Loan to be made available to the Agent not later than 1:00
        p.m. and (ii) if such conditions  would not permit the making of Revolving  Loans,
        the  provisions of  subsection (j)  of this Section shall apply.  The minimum
        amount  limitations  of Section  3.5.(a)  shall not apply to any borrowing of Base
        Rate Loans under this subsection.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect of Letters of Credit on Commitments</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon the  issuance  by the Agent of any Letter of Credit
        and until  such  Letter of Credit  shall  have  expired  or been  terminated,  the
        Commitment  of each Lender shall be deemed to be utilized for all purposes of this
        Agreement in an amount equal to the product of (i) such  Lender&#146;s  Commitment
        Percentage and (ii) the sum of (A) the Stated Amount of such Letter of Credit plus
        (B) any related Reimbursement Obligations then outstanding.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Agent&#146;s Duties Regarding Letters of Credit;
        Unconditional Nature of Reimbursement Obligations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;In   examining  documents  presented  in  connection  with
        drawings under Letters of Credit and making  payments under such Letters of Credit
        against such documents,  the Agent shall only be required to use the same standard
        of care as it uses in connection with examining  documents presented in connection
        with drawings under letters of credit in which it has not sold  participations and
        making payments under such letters of credit.
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The  Borrower  assumes  all risks of the acts and  omissions  of, or misuse of the
        Letters of Credit by, the respective  beneficiaries of such Letters of Credit.  In
        furtherance  and not in limitation of the foregoing,  neither the Agent nor any of
        the  Lenders  shall  be  responsible  for (i)  the  form,  validity,  sufficiency,
        accuracy,  genuineness or legal effects of any document  submitted by any party in
        connection  with the  application for and issuance of or any drawing honored under
        any Letter of Credit even if it should in fact prove to be in any or all  respects
        invalid,  insufficient,  inaccurate,  fraudulent  or forged;  (ii) the validity or
        sufficiency of any instrument  transferring or assigning or purporting to transfer
        or assign any Letter of Credit,  or the rights or benefits  thereunder or proceeds
        thereof, in whole or in part, which may prove to be invalid or ineffective for any
        reason;  (iii) failure of the  beneficiary of any Letter of Credit to comply fully
        with conditions required in order to draw upon such Letter of Credit; (iv) errors,
        omissions, interruptions or delays in transmission or delivery of any messages, by
        mail, cable, telex,  telecopy or otherwise,  whether or not they be in cipher; (v)
        errors  in  interpretation  of  technical  terms;  (vi)  any  loss or delay in the
        transmission  or  otherwise  of any  document  required in order to make a drawing
        under any Letter of Credit, or of the proceeds thereof;  (vii) the  misapplication
        by the  beneficiary of any Letter of Credit,  or the proceeds of any drawing under
        any Letter of Credit;  or (viii) any  consequences  arising from causes beyond the
        control of the Agent or the  Lenders.  None of the above shall  affect,  impair or
        prevent the vesting of any of the  Agent&#146;s  rights or powers  hereunder.  Any
        action taken or omitted to be taken by the Agent under or in  connection  with any
        Letter of  Credit,  if taken or  omitted in the  absence  of gross  negligence  or
        willful misconduct, shall not create against the Agent or any Lender any liability
        to the Borrower or any Lender. In this connection,  the obligation of the Borrower
        to  reimburse  the Agent for any drawing  made under any Letter of Credit shall be
        absolute,  unconditional  and irrevocable and shall be paid strictly in accordance
        with the  terms of this  Agreement  and any  other  applicable  Letter  of  Credit
        Document under all circumstances  whatsoever,  including without  limitation,  the
        following circumstances:  (A) any lack of validity or enforceability of any Letter
        of Credit Document or any term or provisions therein;  (B) any amendment or waiver
        of or any consent to departure from all or any of the Letter of Credit  Documents;
        (C) the existence of any claim, setoff,  defense or other right which the Borrower
        may have at any time against the Agent, any Lender, any beneficiary of a Letter of
        Credit or any other  Person,  whether  in  connection  with  this  Agreement,  the
        transactions  contemplated  hereby or in the  Letter of  Credit  Documents  or any
        unrelated transaction; (D) any breach of contract or dispute between the Borrower,
        the Agent, any Lender or any other Person; (E) any demand,  statement or any other
        document  presented  under a Letter of Credit  proving to be  forged,  fraudulent,
        invalid  or  insufficient  in any  respect  or any  statement  therein  or made in
        connection therewith being untrue or inaccurate in any respect whatsoever; (F) any
        non-application  or misapplication by the beneficiary of a Letter of Credit of the
        proceeds  of any  drawing  under such  Letter of Credit;  (G) payment by the Agent
        under any Letter of Credit against  presentation  of a draft or certificate  which
        does not  strictly  comply  with the terms of such  Letter of Credit,  unless such
        payment  constituted  gross  negligence  of the  Agent  as  actually  and  finally
        determined by a court of competent  jurisdiction;  and (H) any other act, omission
        to act, delay or  circumstance  whatsoever  that might,  but for the provisions of
        this  Section,  constitute  a legal or  equitable  defense to or  discharge of the
        Borrower&#146;s   Reimbursement  Obligations.   Notwithstanding  anything  to  the
        contrary  contained in this Section or Section 12.9., but not in limitation of the
        Borrower&#146;s  unconditional  obligation  to reimburse the Agent for any drawing
        made under a Letter of Credit as provided in this Section, the Borrower shall have
        no  obligation  to indemnify  the Agent or any Lender in respect of any  liability
        incurred by the Agent
        </FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        or a Lender  arising solely out of the gross  negligence or willful  misconduct of
        the Agent or a Lender in respect  of a Letter of Credit as  actually  and  finally
        determined by a court of competent  jurisdiction.  Except as otherwise provided in
        this  Section,  nothing in this  Section  shall affect any rights the Borrower may
        have with respect to the gross  negligence  or willful  misconduct of the Agent or
        any Lender with respect to any Letter of Credit.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments, Etc</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  issuance by the Agent of any amendment, supplement or
        other modification to any Letter of Credit shall be subject to the same conditions
        applicable  under  this  Agreement  to the  issuance  of  new  Letters  of  Credit
        (including,  without  limitation,  that the request  therefor be made  through the
        Agent),  and no such amendment,  supplement or other  modification shall be issued
        unless  either (i) the  respective  Letter of Credit  affected  thereby would have
        complied  with such  conditions  had it originally  been issued  hereunder in such
        amended,  supplemented  or modified form or (ii) the Requisite  Lenders shall have
        consented  thereto.  In connection  with any such  amendment,  supplement or other
        modification,  the Borrower  shall pay the Fees,  if any,  payable  under the last
        sentence of Section 3.6.(b).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lenders&#146; Participation in Letters of Credit</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Immediately upon the issuance by the Agent of any Letter
        of Credit  each Lender  shall be deemed to have  irrevocably  and  unconditionally
        purchased and received from the Agent, without recourse or warranty,  an undivided
        interest  and  participation  to  the  extent  of  such  Lender&#146;s  Commitment
        Percentage of the liability of the Agent with respect to such Letter of Credit and
        each Lender thereby shall absolutely,  unconditionally  and irrevocably assume, as
        primary obligor and not as surety, and shall be  unconditionally  obligated to the
        Agent to pay and discharge when due, such Lender&#146;s  Commitment  Percentage of
        the  Agent&#146;s  liability  under such Letter of Credit.  In addition,  upon the
        making of each payment by a Lender to the Agent in respect of any Letter of Credit
        pursuant  to  the  immediately   following  subsection  (j),  such  Lender  shall,
        automatically  and  without  any  further  action on the part of the Agent or such
        Lender,  acquire (i) a  participation  in an amount  equal to such  payment in the
        Reimbursement  Obligation  owing to the Agent by the  Borrower  in respect of such
        Letter  of  Credit  and  (ii)  a  participation  in a  percentage  equal  to  such
        Lender&#146;s  Commitment  Percentage in any interest or other amounts  payable by
        the  Borrower  in respect of such  Reimbursement  Obligation  (other than the Fees
        payable to the Agent pursuant to the third and last sentences of Section 3.6.(b)).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment Obligations of Lenders</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each  Lender  severally  agrees  to pay to the  Agent on
        demand in immediately  available funds in Dollars the amount of such Lender&#146;s
        Commitment  Percentage  of each  drawing  paid by the Agent  under each  Letter of
        Credit to the extent such amount is not  reimbursed  by the  Borrower  pursuant to
        Section  2.4.(d);  provided,  however,  that in respect of any  drawing  under any
        Letter of Credit,  the maximum  amount that any Lender  shall be required to fund,
        whether  as a  Revolving  Loan  or  as a  participation,  shall  not  exceed  such
        Lender&#146;s  Commitment  Percentage  of such  drawing.  Each such  Lender&#146;s
        obligation  to make such  payments  to the Agent  under this  subsection,  and the
        Agent&#146;s  right to  receive  the  same,  shall be  absolute,  irrevocable  and
        unconditional and shall not be affected in any way by any circumstance whatsoever,
        including  without  limitation,  (i) the  failure of any other  Lender to make its
        payment under this subsection, (ii) the financial condition of the Borrower or any
        other  Loan  Party,  (iii)  the  existence  of any  Default  or Event of  Default,
        including any Event of Default described in
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-32-</FONT></TD></TR>
</TABLE>


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                                            <!--Page 33-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Section 10.1.(f) or 10.1.(g) or (iv) the termination of the Commitments. Each such
        payment to the Agent shall be made without any offset,  abatement,  withholding or
        deduction whatsoever.
        <BR><BR></FONT></P></TD></TR>

<!--(k) Information to Lenders-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Information to Lenders</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon the  request of any Lender  from time to time,  the
        Agent shall deliver to such Lender information reasonably requested by such Lender
        with respect to each Letter of Credit then outstanding. Other than as set forth in
        this subsection,  the Agent shall have no duty to notify the Lenders regarding the
        issuance  or other  matters  regarding  Letters of Credit  issued  hereunder.  The
        failure of the Agent to perform its  requirements  under this subsection shall not
        relieve any Lender from its obligations under Section 2.4.(j).
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--2.5 Rates and Payment of Interest on Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.5.&nbsp;&nbsp;&nbsp;&nbsp;Rates and Payment of Interest on Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.5 (a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rates</U>.
        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower promises to pay to the Agent for the account
        of each Lender interest on the unpaid  principal  amount of each Loan made by such
        Lender for the period  from and  including  the date of the making of such Loan to
        but excluding the date such Loan shall be paid in full, at the following per annum
        rates:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;during  such periods as such Loan is a Base Rate Loan,  at
        the Base Rate (as in effect from time to time) plus the Applicable Margin;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;during  such periods as such Loan is a LIBOR Loan,  at the
        Adjusted  Eurodollar  Rate for such Loan for the Interest Period therefor plus the
        Applicable Margin;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
        &nbsp;&nbsp;&nbsp;&nbsp;if  such Loan is an Absolute  Rate Loan,  at the  Absolute
        Rate for such Loan for the Interest  Period  therefor  quoted by the Lender making
        such Loan in accordance with Section 2.2.; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
        &nbsp;&nbsp;&nbsp;&nbsp;if  such Loan is a LIBOR  Margin  Loan,  at LIBOR for such
        Loan for the Interest  Period  therefor plus the LIBOR Margin for such Loan quoted
        by the Lender making such Loan in accordance with Section 2.2.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Notwithstanding the foregoing,  during the continuance of an Event of Default, the
        Borrower  shall pay to the Agent for the  account of each  Lender  interest at the
        Post-Default  Rate on the  outstanding  principal  amount of any Loan made by such
        Lender,  on all  Reimbursement  Obligations and on any other amount payable by the
        Borrower hereunder or under the Notes held by such Lender to or for the account of
        such Lender  (including  without  limitation,  accrued but unpaid  interest to the
        extent permitted under Applicable Law).
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.5 (b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment of Interest</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;  Accrued and unpaid interest on each Loan shall be payable
        (i) in the case of a Base Rate  Loan,  monthly in arrears on the first day of each
        calendar month, (ii) in the case of a LIBOR Loan or a Bid Rate Loan, in arrears on
        the last day of each Interest Period therefor,  and (iii) in the case of any Loan,
        in arrears upon the payment,  prepayment or Continuation thereof or the Conversion
        of such Loan to a Loan of another Type (but only on the principal  amount so paid,
        prepaid, Continued or Converted).  Interest payable at the Post-Default Rate shall
        be payable from time to time on demand.  Promptly after the  determination  of any
        interest  rate  provided  for herein or any change  therein,  the Agent shall give
        notice  thereof  to the
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-33-</FONT></TD></TR>
</TABLE>


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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Lenders to which such interest is payable and to the Borrower.  All determinations
        by the Agent of an interest rate hereunder  shall be conclusive and binding on the
        Lenders and the Borrower for all purposes, absent manifest error.
        <BR><BR></FONT></P></TD></TR>

<!--2.6 NUMBER OF INTEREST PERIODS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.6.&nbsp;&nbsp;&nbsp;&nbsp;Number of Interest Periods.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There  may be no  more
        than 6 different Interest Periods for LIBOR Loans and Bid Rate Loans, collectively
        outstanding  at the same time (for which  purpose  Interest  Periods  described in
        different   lettered  clauses  of  the  definition  of  the  term   &#147;Interest
        Period&#148;  shall be deemed to be  different  Interest  Periods even if they are
        coterminous).
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.7 REPAYMENT OF LOANS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.7.&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.7(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Revolving Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower shall repay the entire outstanding principal
        amount of, and all  accrued but unpaid  interest  on, the  Revolving  Loans on the
        Termination  Date.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.7(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bid Rate Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall repay the entire  outstanding  principal
        amount of, and all accrued but unpaid  interest on, each Bid Rate Loan on the last
        day of the Interest Period of such Bid Rate Loan.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.8 PREPAYMENTS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Prepayments.</B>
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.8(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Optional</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Subject  to Section 4.4., the Borrower may prepay any Loan
        (other  than a Bid Rate Loan) in whole or in part at any time  without  premium or
        penalty.  Bid Rate Loans may not be prepaid  at the  option of the  Borrower.  The
        Borrower shall give the Agent notice of any prepayment of a Loan before 10:00 a.m.
        (i) in the case of LIBOR  Loans,  on the date  three  Business  Days  prior to the
        proposed date of such  prepayment and (ii) in the case of any other Loans,  on the
        date one Business Day prior to the proposed date of such prepayment.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.8(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Mandatory</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If  at any  time the  aggregate  principal  amount  of all
        outstanding  Revolving Loans,  together with the aggregate amount of all Letter of
        Credit  Liabilities,  the aggregate  principal  amount of all outstanding Bid Rate
        Loans and the  aggregate  principal  amount of all  outstanding  Swingline  Loans,
        exceeds  the  aggregate  amount of the  Commitments  in effect at such  time,  the
        Borrower  shall  immediately  pay to the Agent for the accounts of the Lenders the
        amount of such  excess.  Such  payment  shall be  applied  to pay all  amounts  of
        principal  outstanding on the Loans and any Reimbursement  Obligations pro rata in
        accordance  with Section 3.2. and if any Letters of Credit are outstanding at such
        time the remainder,  if any,  shall be deposited  into the Collateral  Account for
        application to any Reimbursement  Obligations.  If the Borrower is required to pay
        any  outstanding  LIBOR Loans or Bid Rate Loans by reason of this Section prior to
        the end of the applicable  Interest  Period  therefor,  the Borrower shall pay all
        amounts due under Section 4.4.
        <BR><BR></FONT></P></TD></TR>

<!--2.9 CONTINUATION-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.8.&nbsp;&nbsp;&nbsp;&nbsp;Continuation.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So  long as no Default
        or Event of Default shall have occurred and be continuing, the Borrower may on any
        Business Day, with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or
        any portion thereof as a LIBOR Loan by selecting a new Interest Period for such
        </FONT></P></TD></TR>


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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-34-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        LIBOR Loan. Each new Interest Period selected under this Section shall commence on
        the last day of the immediately preceding Interest Period. Each selection of a new
        Interest  Period  shall be made by the  Borrower  giving  to the Agent a Notice of
        Continuation not later than 10:00 a.m. on the third Business Day prior to the date
        of any such  Continuation.  Such notice by the Borrower of a Continuation shall be
        by telephone or telecopy, confirmed immediately in writing if by telephone, in the
        form of a Notice of Continuation,  specifying  (a)&#160;the  proposed date of such
        Continuation,  (b)&#160;the  LIBOR  Loans and  portions  thereof  subject  to such
        Continuation and  (c)&#160;the  duration of the selected  Interest Period,  all of
        which  shall be  specified  in such  manner as is  necessary  to  comply  with all
        limitations on Loans outstanding  hereunder.  Each Notice of Continuation shall be
        irrevocable by and binding on the Borrower once given. Promptly after receipt of a
        Notice of Continuation,  the Agent shall notify each Lender by telecopy,  or other
        similar form of transmission,  of the proposed Continuation. If the Borrower shall
        fail to select in a timely  manner a new  Interest  Period  for any LIBOR  Loan in
        accordance  with this  Section,  or if a Default  or Event of  Default  shall have
        occurred and be continuing,  such Loan will automatically,  on the last day of the
        current  Interest Period therefor,  Convert into a Base Rate Loan  notwithstanding
        the first sentence of Section&#160;2.10.  or the Borrower&#146;s failure to comply
        with any of the terms of such Section.
        <BR><BR></FONT></P></TD></TR>

<!--2.10 CONVERSION-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Conversion.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So  long as no Default
        or Event of Default shall have occurred and be continuing, the Borrower may on any
        Business  Day,  upon the  Borrower&#146;s  giving of a Notice of Conversion to the
        Agent, Convert all or a portion of a Loan of one Type into a Loan of another Type.
        Any  Conversion  of a LIBOR  Loan into a Base Rate Loan shall be made on, and only
        on, the last day of an Interest Period for such LIBOR Loan and, upon Conversion of
        a Base Rate Loan into a LIBOR Loan, the Borrower shall pay accrued interest to the
        date of  Conversion  on the  principal  amount so  Converted.  Each such Notice of
        Conversion  shall be given not later than 10:00 a.m. on the  Business Day prior to
        the date of any proposed Conversion into Base Rate Loans and on the third Business
        Day prior to the date of any proposed Conversion into LIBOR Loans.  Promptly after
        receipt of a Notice of Conversion, the Agent shall notify each Lender by telecopy,
        or other similar form of transmission, of the proposed Conversion.  Subject to the
        restrictions  specified  above,  each Notice of  Conversion  shall be by telephone
        (confirmed  immediately  in  writing)  or  telecopy  in the  form of a  Notice  of
        Conversion specifying (a)&#160;the requested date of such Conversion, (b)&#160;the
        Type of Loan to be  Converted,  (c)&#160;the  portion  of such  Type of Loan to be
        Converted,  (d)&#160;the  Type  of Loan  such  Loan is to be  Converted  into  and
        (e)&#160;if  such  Conversion is into a LIBOR Loan, the requested  duration of the
        Interest  Period of such Loan.  Each Notice of Conversion  shall be irrevocable by
        and binding on the Borrower once given.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.11 NOTES-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;Notes.</B>
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.11(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Revolving Note</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Revolving Loans made by each Lender shall, in addition to
        this Agreement, also be evidenced by promissory note of the Borrower substantially
        in the form of Exhibit K (each a "Revolving  Note"),  payable to the order of such
        Lender in a principal  amount equal to the amount of its  Commitment as originally
        in effect and otherwise duly completed.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-35-</FONT></TD></TR>
</TABLE>


                                            <!--Page 35-->
                                               <PAGE>
                                            <!--Page 36-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--SECTION 2.11(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bid Rate Notes</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Bid Rate Loans made by any Lender shall,  in addition
        to  this  Agreement,  also  be  evidenced  by a  Promissory  note  of the  Borrower
        substantially in the form of Exhibit L (each a &#147;Bid Rate Note&#148;), payable
        to the order of such Lender and otherwise duly completed.
        <BR><BR></FONT></P></TD></TR>


<!--SECTION 2.11(c)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Records</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  date,  amount,  interest  rate,  Type and duration of
        Interest Periods (if applicable) of each Loan made by each Lender to the Borrower,
        and each payment made on account of the  principal  thereof,  shall be recorded by
        such Lender on its books and such entries shall be binding on the Borrower  absent
        manifest error.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.11(d)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lost, Stolen, Destroyed or Mutilated Notes</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon  receipt by the Borrower of (i) written notice from a
        Lender that a Note of such Lender has been lost,  stolen,  destroyed or mutilated,
        and (ii) (A) in the case of loss, theft or destruction,  an unsecured agreement of
        indemnity from such Lender in form reasonably satisfactory to the Borrower, or (B)
        in the case of  mutilation,  upon  surrender and  cancellation  of such Note,  the
        Borrower shall, at the expense of such Lender,  execute and deliver to such Lender
        a new Note dated the date of such lost, stolen, destroyed or mutilated Note.
        <BR><BR></FONT></P></TD></TR>

<!--2.12 EXTENSION OF TERMINATION DATE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.12.&nbsp;&nbsp;&nbsp;&nbsp;Extension of Termination Date.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Borrower   shall
        have the right,  exercisable one time, to extend the Termination Date by one year.
        The Borrower may exercise such right only by executing and delivering to the Agent
        at least 90 days but not more than 150 days prior to the current Termination Date,
        a written request for such extension (an &#147;Extension Request&#148;). The Agent
        shall  forward to each Lender a copy of the  Extension  Request  delivered  to the
        Agent  promptly upon receipt  thereof.  Subject to  satisfaction  of the following
        conditions,   the   Termination   Date   shall   be   extended   for   one   year:
        (a)&#160;immediately  prior to such extension and immediately  after giving effect
        thereto, no Default or Event of Default shall exist, (b)&#160;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  would be true and  correct
        immediately  after giving  effect to the  requested  extension of the  Termination
        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 accurate on and as of such earlier  date) and
        (c)&#160;    the   Borrower    shall   have   paid   the   Fees   payable    under
        Section&#160;3.6.(c).
        <BR><BR></FONT></P></TD></TR>


<!--2.13 EXPIRATION OR MATURITY DATE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.13.&nbsp;&nbsp;&nbsp;&nbsp;Expiration or Maturity Date of Letters of Credit Past
        Termination Date.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  on the  date  (the
        &#147;Facility  Termination  Date&#148;) the  Commitments are terminated  (whether
        voluntarily,  by reason of the  occurrence  of an Event of Default or  otherwise),
        there are any Letters of Credit outstanding hereunder,  the Borrower shall, on the
        Facility Termination Date, pay to the Agent an amount of money equal to the Stated
        Amount of such Letter(s) of Credit for deposit into the Collateral  Account.  If a
        drawing pursuant to any such Letter of Credit occurs on or prior to the expiration
        date of such Letter of Credit, the Borrower authorizes the Agent to use the monies
        deposited  in the  Collateral  Account  to make  payment to the  beneficiary  with
        respect  to such  drawing or the payee with  respect  to such  presentment.  If no
        drawing  occurs on or prior to the expiration  date of such Letter of Credit,  the
        Agent shall withdraw the monies  deposited in the Collateral  Account with respect
        to such outstanding Letter of Credit on
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-36-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        or before the date 15 Business  Days after the  expiration  date of such Letter of
        Credit and apply such funds to the  Obligations,  if any,  then due and payable in
        the order prescribed by Section 10.4.
        <BR><BR></FONT></P></TD></TR>

<!--2.14 VOLUNTARY REDUCTIONS OF THE COMMITMENT-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.14.&nbsp;&nbsp;&nbsp;&nbsp;Voluntary Reductions of the Commitment.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Borrower   shall
        have  the  right to  terminate  or  reduce  the  aggregate  unused  amount  of the
        Commitments  (for which purpose use of the Commitments  shall be deemed to include
        the aggregate amount of Letter of Credit  Liabilities and the aggregate  principal
        amount of all outstanding Swingline Loans and Bid Rate Loans) at any time and from
        time to time without  penalty or premium upon not less than 5 Business  Days prior
        written notice to the Agent of each such  termination  or reduction,  which notice
        shall specify the effective  date thereof and the amount of any such reduction and
        shall be  irrevocable  once given and  effective  only upon  receipt by the Agent;
        provided,  however,  that if the Borrower seeks to reduce the aggregate  amount of
        the Commitments below $100,000,000,  then the Commitments shall be reduced to zero
        and except as otherwise  provided  herein,  the provisions of this Agreement shall
        terminate.  The Agent will  promptly  transmit  such  notice to each  Lender.  The
        Commitments, once terminated or reduced may not be increased or reinstated.
        <BR><BR></FONT></P></TD></TR>

<!--2.15 INCREASE OF COMMITMENTS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.15.&nbsp;&nbsp;&nbsp;&nbsp;Increase of Commitments.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Borrower   shall
        have the right at any time and from time to time  during the period  beginning  on
        the  Effective  Date  through  and  including  the  date  180  days  prior  to the
        Termination  Date to request  increases in the aggregate amount of the Commitments
        (provided that the aggregate  amount of increases in the  Commitments  pursuant to
        this Section shall not exceed  $175,000,000)  by providing  written  notice to the
        Agent,  which notice shall be irrevocable  once given. No Lender shall be required
        to increase its Commitment  and any new Lender  becoming a party to this Agreement
        in connection with any such requested increase must be an Eligible Assignee.  If a
        new Lender becomes a party to this Agreement,  or if any existing Lender agrees to
        increase  its  Commitment,  such  Lender  shall  on the date it  becomes  a Lender
        hereunder (or increases its Commitment, in the case of an existing Lender) (and as
        a condition thereto) purchase from the other Lenders its Commitment Percentage (as
        determined  after giving effect to the increase of Commitments) of any outstanding
        Revolving  Loans,  by making  available to the Agent for the account of such other
        Lenders,  in same day funds,  an amount equal to the sum of (A) the portion of the
        outstanding  principal  amount of such  Revolving  Loans to be  purchased  by such
        Lender  plus (B) the  aggregate  amount of payments  previously  made by the other
        Lenders  under Section  2.4.(j) which have not been repaid plus  (C)&#160;interest
        accrued  and  unpaid to and as of such  date on such  portion  of the  outstanding
        principal  amount of such Revolving  Loans.  The Borrower shall pay to the Lenders
        amounts payable,  if any, to such Lenders under  Section&#160;4.4.  as a result of
        the prepayment of any such Revolving  Loans. No increase of the Commitments may be
        effected  under this  Section  if (x) a Default or Event of Default  exists on the
        effective  date of such  increase or (y) any  representation  or warranty  made or
        deemed made by the Borrower or any other Loan Party in any Loan  Document to which
        any such Loan  Party is a party is not (or would  not be) true or  correct  on the
        effective date of such increase  (except for  representations  or warranties which
        expressly  relate solely to an earlier date).  In connection  with any increase in
        the  aggregate  amount of the  Commitments  pursuant to this  subsection,  (a) any
        Lender  becoming a party hereto shall execute such documents and agreements as the
        Agent may reasonably
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-37-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        request and (b) the Borrower shall make appropriate  arrangements so that each new
        Lender,  and any existing  Lender  increasing  its  Commitment,  receives a new or
        replacement Note, as appropriate,  in the amount of such Lender&#146;s  Commitment
        within 2 Business  Days of the  effectiveness  of the  applicable  increase in the
        aggregate amount of Commitments.
        <BR><BR></FONT></P></TD></TR>

<!--2.16 AMOUNT LIMITATIONS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 2.16.&nbsp;&nbsp;&nbsp;&nbsp;Amount Limitations.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding    any
        other  term of this  Agreement  or any other  Loan  Document,  no Lender  shall be
        required  to make a Loan and the Agent  shall not be required to issue a Letter of
        Credit,  if  immediately  after the  making of such Loan or the  issuance  of such
        Letter of Credit:
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.16(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;the   aggregate   principal   amount  of  all  outstanding
        Revolving Loans,  together with the aggregate  principal amount of all outstanding
        Bid Rate Loans, the aggregate principal amount of all outstanding  Swingline Loans
        and the  aggregate  amount of all Letter of Credit  Liabilities,  would exceed the
        aggregate amount of the Commitments at such time; or
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 2.16(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;the aggregate principal amount of all outstanding Bid Rate
        Loans would exceed 50.0% of the aggregate amount of the Commitments at such time.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE III-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE III. &nbsp;&nbsp;PAYMENTS, FEES AND OTHER GENERAL PROVISIONS</B>
        <BR><BR></FONT></P></TD></TR>


<!--3.1 PAYMENTS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.1.&nbsp;&nbsp;&nbsp;&nbsp;Payments.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except  to the  extent
        otherwise provided herein,  all payments of principal,  interest and other amounts
        to be made by the Borrower  under this  Agreement or any other Loan Document shall
        be made in Dollars, in immediately available funds, without deduction,  set-off or
        counterclaim,  to the Agent at its Principal Office, not later than 2:00&#160;p.m.
        on the date on which such  payment  shall become due (each such payment made after
        such time on such due date to be  deemed to have been made on the next  succeeding
        Business Day).  Subject to  Sections&#160;3.2.  and 3.3., the Agent, or any Lender
        for whose  account any such payment is made,  may (but shall not be obligated  to)
        debit  the  amount  of any such  payment  which is not made by such  time from any
        special or general  deposit account of the Borrower with the Agent or such Lender,
        as the case may be (with notice to the Borrower, the other Lenders and the Agent).
        The Borrower shall, at the time of making each payment under this Agreement or any
        Note,  specify to the Agent the amounts payable by the Borrower hereunder to which
        such payment is to be applied.  Each payment received by the Agent for the account
        of a Lender  under this  Agreement or any Note shall be paid to such Lender at the
        applicable  Lending  Office of such  Lender no later than 5:00 p.m. on the date of
        receipt.  If the Agent  fails to pay such  amount to a Lender as  provided  in the
        previous  sentence,  the Agent shall pay  interest on such amount  until paid at a
        rate per annum equal to the Federal Funds Rate from time to time in effect. If the
        due date of any payment  under this  Agreement  or any other Loan  Document  would
        otherwise fall on a day which is not a Business Day such date shall be extended to
        the next  succeeding  Business Day and interest shall be payable for the period of
        such extension.
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-38-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--3.2 PRO RATA TREATMENT-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.2.&nbsp;&nbsp;&nbsp;&nbsp;Pro Rata Treatment.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except  to the  extent
        otherwise   provided   herein:   (a)  each   borrowing   from  the  Lenders  under
        Section&#160;2.1.(a)  shall be made from the  Lenders,  each  payment  of the Fees
        under Section&#160;3.6.(a), the first sentence of Section&#160;3.6.(b) and Section
        3.6.(c)  shall be made for the account of the  Lenders,  and each  termination  or
        reduction  of the  amount of the  Commitments  under  Section&#160;2.14.  shall be
        applied to the respective  Commitments  of the Lenders,  pro rata according to the
        amounts  of their  respective  Commitments;  (b) each  payment  or  prepayment  of
        principal of Revolving  Loans by the Borrower shall be made for the account of the
        Lenders pro rata in accordance with the respective unpaid principal amounts of the
        Revolving Loans held by them,  provided that if immediately prior to giving effect
        to any such payment in respect of any Revolving  Loans the  outstanding  principal
        amount  of the  Revolving  Loans  shall  not be held by the  Lenders  pro  rata in
        accordance with their respective Commitments in effect at the time such Loans were
        made,  then such payment shall be applied to the Revolving Loans in such manner as
        shall result, as nearly as is practicable,  in the outstanding principal amount of
        the Revolving  Loans being held by the Lenders pro rata in  accordance  with their
        respective  Commitments;  (c) each payment of interest on  Revolving  Loans by the
        Borrower shall be made for the account of the Lenders pro rata in accordance  with
        the  amounts of  interest  on such Loans  then due and  payable to the  respective
        Lenders;  (d)&#160;the making, Conversion and Continuation of Revolving Loans of a
        particular  Type (other than  Conversions  provided for by Section  4.6.) shall be
        made pro rata among the  Lenders  according  to the  amounts  of their  respective
        Commitments  (in the case of making of  Loans) or their  respective  Loans (in the
        case of  Conversions  and  Continuations  of Loans) and the then current  Interest
        Period  for  each  Lender&#146;s  portion  of  each  Loan of such  Type  shall  be
        coterminous;  (e) the Lenders&#146;  participation in, and payment  obligations in
        respect  of,  Letters  of  Credit  under  Section&#160;2.4.,  shall be pro rata in
        accordance  with  their   respective   Commitments;   (f)&#160;the   Lenders&#146;
        participation  in, and payment  obligations in respect of,  Swingline  Loans under
        Section&#160;2.3.,   shall  be  pro  rata  in  accordance  with  their  respective
        Commitments; and (g)&#160;each mandatory prepayment of principal of Bid Rate Loans
        by the Borrower pursuant to Section&#160;2.8.(b)  shall be made for account of the
        Lenders then owed Bid Rate Loans pro rata in accordance with the respective unpaid
        principal  amounts  of the Bid Rate  Loans  then  owing to each such  Lender.  All
        payments  of  principal,  interest,  fees and  other  amounts  in  respect  of the
        Swingline  Loans shall be for the account of the Swingline  Lender only (except to
        the extent any Lender  shall have  acquired a  participating  interest in any such
        Swingline Loan pursuant to Section&#160;2.3.(e), in which case such payments shall
        be pro rata in accordance with such participating interests).
        <BR><BR></FONT></P></TD></TR>


<!--3.3 SHARING OF PAYMENTS, ETC.-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.3.&nbsp;&nbsp;&nbsp;&nbsp;Sharing of Payments, Etc.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If   a  Lender   shall
        obtain  payment of any  principal  of, or interest  on, any Loan made by it to the
        Borrower under this  Agreement,  or shall obtain  payment on any other  Obligation
        owing by the  Borrower  or a Loan  Party  through  the  exercise  of any  right of
        set-off,  banker&#146;s  lien or  counterclaim  or similar  right or  otherwise or
        through voluntary  prepayments  directly to a Lender or other payments made by the
        Borrower to a Lender not in accordance  with the terms of this  Agreement and such
        payment  should  be  distributed  to the  Lenders  pro  rata  in  accordance  with
        Section&#160;3.2. or Section&#160;10.4., as applicable, such Lender shall promptly
        purchase  from the  other  Lenders  participations  in (or,  if and to the  extent
        specified by such Lender, direct interests in) the Loans made by the other Lenders
        or other Obligations owed to such other Lenders in such
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-39-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        amounts,  and make such other adjustments from time to time as shall be equitable,
        to the end that all the Lenders  shall share the benefit of such  payment  (net of
        any  reasonable  expenses  which may be incurred by such  Lender in  obtaining  or
        preserving  such  benefit)  pro  rata  in  accordance  with  Section&#160;3.2.  or
        Section&#160;10.4. To such end, all the Lenders shall make appropriate adjustments
        among  themselves  (by the resale of  participations  sold or  otherwise)  if such
        payment is rescinded or must otherwise be restored.  The Borrower  agrees that any
        Lender so purchasing a  participation  (or direct  interest) in the Loans or other
        Obligations  owed to such  other  Lenders  may  exercise  all  rights of  set-off,
        banker&#146;s   lien,   counterclaim  or  similar  rights  with  respect  to  such
        participation  as fully as if such  Lender  were a direct  holder  of Loans in the
        amount of such participation. Nothing contained herein shall require any Lender to
        exercise any such right or shall  affect the right of any Lender to exercise,  and
        retain the  benefits  of  exercising,  any such  right  with  respect to any other
        indebtedness or obligation of the Borrower.
        <BR><BR></FONT></P></TD></TR>

<!--3.4 SEVERAL OBLIGATIONS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.4.&nbsp;&nbsp;&nbsp;&nbsp;Several Obligations.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No   Lender  shall  be
        responsible  for the failure of any other  Lender to make a Loan or to perform any
        other obligation to be made or performed by such other Lender  hereunder,  and the
        failure of any Lender to make a Loan or to perform any other obligation to be made
        or performed by it hereunder  shall not relieve the obligation of any other Lender
        to make any Loan or to perform any other  obligation  to be made or  performed  by
        such other Lender.
        <BR><BR></FONT></P></TD></TR>

<!--3.5 MINIMUM AMOUNTS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.5.&nbsp;&nbsp;&nbsp;&nbsp;Minimum Amounts.</B>
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.5(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Borrowings and Conversions</U>.
        &nbsp;&nbsp;&nbsp;&nbsp;Each borrowing of Base Rate Loans shall be in an
        aggregate minimum amount of $100,000 and integral  multiples of $100,000 in excess
        thereof.  Each  borrowing  and  each  Conversion  of  LIBOR  Loans  shall be in an
        aggregate  minimum  amount of  $1,000,000  and  integral  multiples of $100,000 in
        excess of that amount.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.5(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prepayments</U>.
        &nbsp;&nbsp;&nbsp;&nbsp;Each  voluntary  prepayment  of Revolving  Loans shall be in an
        aggregate minimum amount of $100,000 and integral  multiples of $100,000 in excess
        thereof (or, if less,  the  aggregate  principal  amount of  Revolving  Loans then
        outstanding).
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.5(c)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reductions of Commitments</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each  reduction of the  Commitments  under  Section  2.14.
        shall be in an aggregate  minimum amount of $10,000,000 and integral  multiples of
        $5,000,000 in excess thereof.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.5(d)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Letters of Credit</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The initial Stated Amount of each Letter of Credit shall be
        at least $50,000.
        <BR><BR></FONT></P></TD></TR>

<!--3.6 FEES-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.6.&nbsp;&nbsp;&nbsp;&nbsp;Fees.</B>
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.6(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Facility Fees</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower agrees to pay to the Agent for the account of
        each Lender a facility fee equal to the average daily amount of the  Commitment of
        such Lender  (whether or not utilized)  times the Facility Fee for the period from
        and  including the  Agreement  Date to but  excluding the date such  Commitment is
        terminated  or reduced  to zero or the  Termination  Date,  such fee to be paid in
        arrears on (i) the last day of March, June, September
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-40-</FONT></TD></TR>
</TABLE>


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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        and December in each year, (ii) the date of each reduction in the Commitments (but
        only on the amount of the reduction) and (iii)&#160;on the Termination Date.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.6(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Letter of Credit Fees</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower agrees to pay to the Agent for the account
        of each  Lender a letter of credit e at a rate per annum  equal to the  Applicable
        Margin for LIBOR Loans  times the daily  average  Stated  Amount of each Letter of
        Credit for the period  from and  including  the date of issuance of such Letter of
        Credit (x) through  and  including  the date such  Letter of Credit  expires or is
        terminated  or (y) to but  excluding  the date  such  Letter of Credit is drawn in
        full.  The  fees  provided  for in the  immediately  preceding  sentence  shall be
        nonrefundable and payable in arrears on (i) the last day of March, June, September
        and  December  in each  year,  (ii)  the  Termination  Date,  (iii)  the  date the
        Commitments  are  terminated or reduced to zero and (iv)  thereafter  from time to
        time on demand of the Agent. In addition,  the Borrower shall pay to the Agent for
        its own account and not the  account of any Lender,  a fronting  fee in respect of
        each Letter of Credit at the rate equal to one-eighth of one percent  (0.125%) per
        annum on the daily  average  Stated Amount of such Letter of Credit for the period
        from and  including  the date of issuance of such Letter of Credit (A) through and
        including  the date such Letter of Credit  expires or is  terminated or (B) to but
        excluding the date such Letter of Credit is drawn in full. The fee provided for in
        the  immediately  preceding  sentence  shall be  nonrefundable  and  payable  upon
        issuance of the  applicable  Letter of Credit.  The Borrower shall pay directly to
        the Agent from time to time on demand all commissions, charges, costs and expenses
        in the  amounts  customarily  charged  by the  Agent  from  time  to  time in like
        circumstances  with  respect to the  issuance of each Letter of Credit,  drawings,
        amendments and other transactions relating thereto.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.6(c)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extension Fee</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If   the  Borrower  exercises  its  right  to  extend  the
        Termination  Date in accordance with Section 2.12.,  the Borrower agrees to pay to
        the Agent for the account of each Lender a fee equal to one-quarter of one percent
        (0.25%) of the amount of such Lender's Commitment (whether or not utilized).  Such
        fee shall be due and payable in full on the date the Agent  receives the Extension
        Request pursuant to such Section.
        <BR><BR></FONT></P></TD></TR>

<!--SECTION 3.6(d)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Administrative and Other Fees</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower agrees to pay the  administrative  and other
        fees of the Agent as may be agreed to in writing by the Borrower and the Agent from
        time to time.
        <BR><BR></FONT></P></TD></TR>


<!--3.7 COMPUTATIONS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.7.&nbsp;&nbsp;&nbsp;&nbsp;Computations.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise
        expressly  set forth  herein,  any accrued  interest on any Loan,  any Fees or any
        other  Obligations  due hereunder  shall be computed on the basis of a year of 360
        days and the actual number of days elapsed.
        <BR><BR></FONT></P></TD></TR>

<!--3.8 USURY-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.8.&nbsp;&nbsp;&nbsp;&nbsp;Usury.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In  no event shall the
        amount of  interest  due or payable on the Loans or other  Obligations  exceed the
        maximum  rate of interest  allowed by  Applicable  Law and, if any such payment is
        paid by the  Borrower or  received  by any  Lender,  then such excess sum shall be
        credited  as a  payment  of  principal,  unless  the  Borrower  shall  notify  the
        respective  Lender in writing  that the  Borrower  elects to have such  excess sum
        returned to it forthwith. It is the express intent of the
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-41-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        parties hereto that the Borrower not pay and the Lenders not receive,  directly or
        indirectly,  in any  manner  whatsoever,  interest  in excess of that which may be
        lawfully paid by the Borrower under Applicable Law.
        <BR><BR></FONT></P></TD></TR>

<!--3.9 AGREEMENT REGARDING INTEREST AND CHARGES-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.9.&nbsp;&nbsp;&nbsp;&nbsp;Agreement Regarding Interest and Charges.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   parties   hereto
        hereby agree and stipulate  that the only charge imposed upon the Borrower for the
        use of money in  connection  with  this  Agreement  is and  shall be the  interest
        specifically  described  in  Section&#160;2.5.(a)(i)  through  (iv) and in Section
        2.3.(c).  Notwithstanding  the  foregoing,  the parties  hereto  further agree and
        stipulate that all agency fees,  syndication  fees,  facility fees,  closing fees,
        letter of credit fees,  underwriting fees, default charges, late charges,  funding
        or &#147;breakage&#148;  charges, increased cost charges, attorneys&#146; fees and
        reimbursement  for costs  and  expenses  paid by the Agent or any  Lender to third
        parties  or for  damages  incurred  by the  Agent or any  Lender,  in each case in
        connection with the transactions contemplated by this Agreement and the other Loan
        Documents,  are  charges  made to  compensate  the  Agent or any such  Lender  for
        underwriting or administrative services and costs or losses performed or incurred,
        and to be performed or incurred,  by the Agent and the Lenders in connection  with
        this  Agreement and shall under no  circumstances  be deemed to be charges for the
        use of money.  All charges  other than charges for the use of money shall be fully
        earned and nonrefundable when due.
        <BR><BR></FONT></P></TD></TR>

<!--3.10 STATEMENTS OF ACCOUNT-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.10.&nbsp;&nbsp;&nbsp;&nbsp;Statements of Account.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent will account
        to the  Borrower  monthly with a statement  of Loans,  Letters of Credit,  accrued
        interest and Fees,  charges and payments made  pursuant to this  Agreement and the
        other Loan  Documents,  and such  account  rendered  by the Agent  shall be deemed
        conclusive  upon  Borrower  absent  manifest  error.  The  failure of the Agent to
        deliver such a statement of accounts  shall not relieve or discharge  the Borrower
        from any of its obligations hereunder.
        <BR><BR></FONT></P></TD></TR>

<!--3.11 DEFAULTING LENDERS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.11.&nbsp;&nbsp;&nbsp;&nbsp;Defaulting Lenders.</B>
        <BR><BR></FONT></P></TD></TR>

<!--Section 3.11(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Generally</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If   for  any  reason   any  Lender  (a   &#147;Defaulting
        Lender&#148;)  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 two  Business  Days after
        notice from the Agent,  then,  in addition to the rights and remedies  that may be
        available to the 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 Agent or to be taken  into  account  in the  calculation  of the  Requisite
        Lenders,  shall be suspended during the pendency of such failure or refusal.  If a
        Lender is a Defaulting  Lender because it has failed to make timely payment to the
        Agent of any amount  required to be paid to the Agent  hereunder  (without  giving
        effect to any notice or cure  periods),  in addition to other  rights and remedies
        which  the  Agent  or the  Borrower  may  have  under  the  immediately  preceding
        provisions or otherwise,  the 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
        Federal Funds Rate,
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-42-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        (ii)&#160;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)&#160;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 Agent in respect of a Defaulting Lender&#146;s Loans shall not be paid to such
        Defaulting  Lender and shall be held  uninvested  by the Agent and either  applied
        against the purchase  price of such Loans under the following  subsection&#160;(b)
        or paid to such Defaulting Lender upon the Defaulting  Lender&#146;s curing of its
        default.
        <BR><BR></FONT></P></TD></TR>

<!--Section 3.11(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase or Cancellation of Defaulting Lender&#146;s
        Commitment</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Any  Lender who is not a  Defaulting  Lender shall have the
        right,  but not the  obligation,  in its  sole  discretion,  to  acquire  all of a
        Defaulting  Lender&#146;s  Commitment.  Any Lender desiring to exercise such right
        shall give written  notice  thereof to the Agent and the Borrower no sooner than 2
        Business  Days and not later than 5 Business  Days  after such  Defaulting  Lender
        became a Defaulting  Lender.  If more than one Lender  exercises such right,  each
        such  Lender  shall  have the  right  to  acquire  an  amount  of such  Defaulting
        Lender&#146;s  Commitment in proportion  to the  Commitments  of the other Lenders
        exercising  such right.  If after such 5th  Business  Day,  the  Lenders  have not
        elected to purchase all of the  Commitment  of such  Defaulting  Lender,  then the
        Borrower  may, by giving  written  notice  thereof to the Agent,  such  Defaulting
        Lender and the other Lenders, either (i) demand that such Defaulting Lender assign
        its  Commitment  to an Eligible  Assignee  subject to and in  accordance  with the
        provisions of Section  12.5.(d) for the purchase  price provided for below or (ii)
        terminate the Commitment of such  Defaulting  Lender,  whereupon  such  Defaulting
        Lender  shall no  longer  be a party  hereto  or have any  rights  or  obligations
        hereunder or under any of the other Loan Documents. No party hereto shall have any
        obligation  whatsoever to initiate any such replacement or to assist in finding an
        Eligible Assignee.  Upon any such purchase or assignment,  the Defaulting Lender's
        interest in the Loans and its rights  hereunder  (but not its liability in respect
        thereof  or under the Loan  Documents  or this  Agreement  to the  extent the same
        relate to the period prior to the effective date of the purchase)  shall terminate
        on the date of purchase,  and the  Defaulting  Lender shall  promptly  execute all
        documents  reasonably  requested to surrender  and transfer  such  interest to the
        purchaser or assignee thereof,  including an appropriate Assignment and Acceptance
        Agreement  and,  notwithstanding  Section  12.5.(d),  shall  pay to the  Agent  an
        assignment fee in the amount of $7,000. The purchase price for the Commitment of a
        Defaulting  Lender  shall be equal to the amount of the  principal  balance of the
        Loans  outstanding  and owed by the Borrower to the  Defaulting  Lender.  Prior to
        payment of such  purchase  price to a  Defaulting  Lender,  the Agent  shall apply
        against such purchase price any amounts retained by the Agent pursuant to the last
        sentence of the immediately  preceding subsection (a). The Defaulting Lender shall
        be entitled to receive amounts owed to it by the Borrower under the Loan Documents
        which accrued prior to the date of the default by the  Defaulting  Lender,  to the
        extent the same are received by the Agent from or on behalf of the Borrower. There
        shall be no recourse  against any Lender or the Agent for the payment of such sums
        except to the extent of the receipt of payments from any other party or in respect
        of the Loans.
        <BR><BR></FONT></P></TD></TR>

<!--3.12 TAXES-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 3.12.&nbsp;&nbsp;&nbsp;&nbsp;Taxes.</B>
        <BR><BR></FONT></P></TD></TR>

<!--Section 3.12(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes Generally</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;All payments by the Borrower of principal  of, and interest
        on,  the  Loans  and all  other  Obligations  shall be made  free and clear of and
        without  deduction for any
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-43-</FONT></TD></TR>
</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        present or future excise,  stamp or other taxes,  fees, duties,  levies,  imposts,
        charges,  deductions,  withholdings  or other  charges  of any  nature  whatsoever
        imposed by any taxing authority, but excluding (i) franchise taxes, (ii) any taxes
        (other than  withholding  taxes)  that would not be imposed  but for a  connection
        between the Agent or a Lender and the jurisdiction imposing such taxes (other than
        a  connection  arising  solely by virtue  of the  activities  of the Agent or such
        Lender  pursuant to or in respect of this  Agreement or any other Loan  Document),
        (iii) any taxes  imposed  on or  measured  by any  Lender's  assets,  net  income,
        receipts or branch profits,  and (iv) any taxes,  fees, duties,  levies,  imposts,
        charges,  deductions,  withholdings  or other  charges to the extent  imposed as a
        result of the failure of the Agent or a Lender, as applicable, to provide and keep
        current (to the extent legally able) any certificates, documents or other evidence
        required  to qualify for an  exemption  from,  or reduced  rate of, any such taxes
        fees, duties, levies, imposts, charges, deductions,  withholdings or other charges
        or required by the  immediately  following  subsection  (c) to be furnished by the
        Agent or such Lender, as applicable (such  non-excluded  items being  collectively
        called &#147;Taxes&#148;).  If any withholding or deduction from any payment to be
        made by the Borrower hereunder is required in respect of any Taxes pursuant to any
        Applicable Law, then the Borrower will:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;pay  directly to the relevant  Governmental  Authority the
        full amount required to be so withheld or deducted;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;promptly forward to the Agent an official receipt or other
        documentation   satisfactory  to  the  Agent   evidencing  such  payment  to  such
        Governmental Authority; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
        &nbsp;&nbsp;&nbsp;&nbsp;pay  to the Agent for its  account  or the  account of the
        applicable  Lender,  as the case may be, such  additional  amount or amounts as is
        necessary  to ensure  that the net amount  actually  received by the Agent or such
        Lender  will  equal the full  amount  that the  Agent or such  Lender  would  have
        received had no such withholding or deduction been required.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<!--Section 3.12(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax Indemnification</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If the Borrower fails to pay any Taxes when due to the
        appropriate Governmental Authority or fails to remit to the Agent, for its account
        or the account of the respective Lender, as the case may be, the required receipts
        or other required documentary evidence, the Borrower shall indemnify the Agent and
        the Lenders for any  incremental  Taxes,  interest  or  penalties  that may become
        payable by the Agent or any Lender as a result of any such  failure.  For purposes
        of this Section, a distribution hereunder by the Agent or any Lender to or for the
        account of any Lender shall be deemed a payment by the Borrower.
        <BR><BR></FONT></P></TD></TR>

<!--Section 3.12(c)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax Forms</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Prior to the date that any Lender or Participant organized
        under the laws of a  jurisdiction  outside the United States of America  becomes a
        party  hereto,  such  Person  shall  deliver  to the  Borrower  and the Agent such
        certificates,  documents or other  evidence,  as required by the Internal  Revenue
        Code or Treasury  Regulations issued pursuant thereto (including  Internal Revenue
        Service Forms W-8ECI and W-8BEN, as applicable,  or appropriate  successor forms),
        properly  completed,  currently  effective  and duly  executed  by such  Lender or
        Participant establishing that payments to it hereunder and under the Notes are (i)
        not subject to United States Federal backup  withholding  tax and (ii) not subject
        to United States Federal  withholding  tax under the Internal  Revenue Code.  Each
        such Lender or Participant shall (x)
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-44-</FONT></TD></TR>
</TABLE>


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                                            <!--Page 45-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        deliver  further copies of such forms or other  appropriate  certifications  on or
        before  the date  that any such  forms  expire or  become  obsolete  and after the
        occurrence  of any event  requiring a change in the most recent form  delivered to
        the Borrower or the Agent and (y) obtain such  extensions  of the time for filing,
        and renew such forms and certifications thereof, as may be reasonably requested by
        the Borrower or the Agent.  The  Borrower  shall not be required to pay any amount
        pursuant to last  sentence of  subsection  (a) above to any Lender or  Participant
        that is organized under the laws of a jurisdiction outside of the United States of
        America or the Agent, if it is organized under the laws of a jurisdiction  outside
        of the United  States of America,  if such Lender,  Participant  or the Agent,  as
        applicable,  fails to comply with the requirements of this subsection. If any such
        Lender or  Participant  fails to deliver the above  forms or other  documentation,
        then the Agent may withhold  from any payments to be made to such Lender under any
        of the Loan Documents  such amounts as are required by the Internal  Revenue Code.
        If any Governmental  Authority asserts that the Agent did not properly withhold or
        backup withhold, as the case may be, any tax or other amount from payments made to
        or for the account of any Lender,  such Lender shall indemnify the Agent therefor,
        including all penalties and interest, any taxes imposed by any jurisdiction on the
        amounts payable to the Agent under this Section, and costs and expenses (including
        all reasonable fees and  disbursements  of any law firm or other external  counsel
        and the  allocated  cost of  internal  legal  services  and all  disbursements  of
        internal  counsel) of the Agent.  The obligation of the Lenders under this Section
        shall survive the termination of the Commitments, repayment of all Obligations and
        the resignation or replacement of the Agent.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE IV-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE IV. &nbsp;&nbsp;YIELD PROTECTION, ETC.</B>
        <BR><BR></FONT></P></TD></TR>


<!--4.1 Additional Costs; Capital Adequacy-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.1.&nbsp;&nbsp;&nbsp;&nbsp;Additional Costs; Capital Adequacy.</B>
        <BR><BR></FONT></P></TD></TR>

<!--Section 4.1(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional Costs</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall  promptly  pay to the Agent for the
        account of a Lender from time to time such amounts as such Lender may determine to
        be necessary to compensate  such Lender for any costs incurred by such Lender that
        it determines are  attributable to its making or maintaining of any LIBOR Loans or
        its  obligation  to make any LIBOR Loans  hereunder,  any  reduction in any amount
        receivable by such Lender under this  Agreement or any of the other Loan Documents
        in respect  of any of such Loans or such  obligation  or the  maintenance  by such
        Lender of capital in respect of its Loans or its  Commitment  (such  increases  in
        costs and reductions in amounts  receivable  being herein called  &#147;Additional
        Costs&#148;),  resulting from any Regulatory Change that: (i) changes the basis of
        taxation of any amounts  payable to such Lender under this Agreement or any of the
        other Loan Documents in respect of any of such Loans or its Commitment (other than
        taxes, fees, duties, levies, imposts, charges,  deductions,  withholdings or other
        charges  which are excluded  from the  definition  of Taxes  pursuant to the first
        sentence of Section  3.12.(a));  or (ii) imposes or modifies any reserve,  special
        deposit or similar requirements (other than Regulation D of the Board of Governors
        of the Federal Reserve System or other reserve  requirement to the extent utilized
        in the  determination  of the Adjusted  Eurodollar Rate for such Loan) relating to
        any  extensions  of  credit or other  assets  of,  or any  deposits  with or other
        liabilities of, such Lender, or any commitment of such Lender (including,  without
        limitation,  the Commitment of such Lender hereunder);  or (iii) has or would have
        the effect of  reducing  the rate of return on  capital of such  Lender to a level
        below that which such Lender could have  achieved but for such  Regulatory  Change
        (taking into  consideration  such  Lender&#146;s  policies with respect to capital
        adequacy).
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-45-</FONT></TD></TR>
</TABLE>


                                            <!--Page 45-->
                                               <PAGE>
                                            <!--Page 46-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 4.1(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lender&#146;s Suspension of LIBOR Loans</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Without  limiting  the  effect  of the  provisions  of the
        immediately  preceding subsection (a), if, by reason of any Regulatory Change, any
        Lender either (i) incurs Additional Costs based on or measured by the excess above
        a specified level of the amount of a category of deposits or other  liabilities of
        such Lender that  includes  deposits by reference  to which the  interest  rate on
        LIBOR  Loans  is  determined  as  provided  in this  Agreement  or a  category  of
        extensions of credit or other assets of such Lender that  includes  LIBOR Loans or
        (ii)  becomes  subject  to  restrictions  on the  amount  of  such a  category  of
        liabilities  or assets that it may hold,  then, if such Lender so elects by notice
        to the Borrower (with a copy to the Agent),  the obligation of such Lender to make
        or  Continue,  or to Convert any other Type of Loans into,  LIBOR Loans  hereunder
        shall be suspended until such  Regulatory  Change ceases to be in effect (in which
        case the provisions of Section 4.6. shall apply).
        <BR><BR></FONT></P></TD></TR>

<!--Section 4.1(c)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional Costs in Respect of Letters of Credit</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;  Without  limiting the  obligations of the Borrower under
        the  preceding  subsections  of this Section (but  without  duplication),  if as a
        result of any  Regulatory  Change or any  risk-based  capital  guideline  or other
        requirement  heretofore or hereafter  issued by any  Governmental  Authority there
        shall be imposed, modified or deemed applicable any tax, reserve, special deposit,
        capital adequacy or similar  requirement against or with respect to or measured by
        reference to Letters of Credit and the result shall be to increase the cost to the
        Agent of issuing (or any Lender of purchasing  participations  in) or  maintaining
        its obligation  hereunder to issue (or purchase  participations  in) any Letter of
        Credit or reduce any amount  receivable  by the Agent or any Lender  hereunder  in
        respect of any Letter of Credit,  then,  upon demand by the Agent or such  Lender,
        the  Borrower  shall pay  promptly,  and in any event  within 3  Business  Days of
        demand, to the Agent for its account or the account of such Lender, as applicable,
        from time to time as specified by the Agent or a Lender,  such additional  amounts
        as shall be sufficient to compensate  the Agent or such Lender for such  increased
        costs or reductions in amount.
        <BR><BR></FONT></P></TD></TR>

<!--Section 4.1(d)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notification and Determination of Additional Costs</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;  Each of the Agent and each  Lender  agrees to notify the
        Borrower of any event  occurring  after the Agreement  Date entitling the Agent or
        such Lender to compensation under any of the preceding subsections of this Section
        as promptly as  practicable;  provided,  however,  the failure of the Agent or any
        Lender  to give  such  notice  shall  not  release  the  Borrower  from any of its
        obligations  hereunder (and in the case of a Lender,  to the Agent).  The Agent or
        such Lender agrees to furnish to the Borrower (and in the case of a Lender, to the
        Agent) a  certificate  setting  forth the basis and amount of each  request by the
        Agent or such Lender for compensation  under this Section.  Absent manifest error,
        determinations  by the Agent or any Lender of the effect of any Regulatory  Change
        shall be conclusive,  provided that such  determinations  are made on a reasonable
        basis and in good faith.
        <BR><BR></FONT></P></TD></TR>

<!--4.2 Suspension of LIBOR Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.2.&nbsp;&nbsp;&nbsp;&nbsp;Suspension of LIBOR Loans.</B>
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything herein to the
        contrary  notwithstanding,  if, on or prior to the  determination  of any Adjusted
        Eurodollar Rate for any Interest Period:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<!--Section 4.2(a)-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp; the Agent  reasonably  determines  (which  determination
        shall be  conclusive)  that by  reason of  circumstances  affecting  the  relevant
        market, adequate and
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-46-</FONT></TD></TR>
</TABLE>


                                            <!--Page 46-->
                                               <PAGE>
                                            <!--Page 47-->


<!--Section 4.2(a) continued-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        reasonable means do not exist for  ascertaining  the Adjusted  Eurodollar Rate for
        such Interest Period, or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;  the Agent  reasonably  determines  (which  determination
        shall be  conclusive)  that the Adjusted  Eurodollar  Rate will not adequately and
        fairly  reflect the cost to the Lenders of making or  maintaining  LIBOR Loans for
        such Interest Period;
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        then the Agent shall give the Borrower and each Lender prompt notice  thereof and,
        so long as such  condition  remains  in  effect,  the  Lenders  shall  be under no
        obligation to, and shall not, make additional LIBOR Loans, Continue LIBOR Loans or
        Convert  Loans into LIBOR Loans and the  Borrower  shall,  on the last day of each
        current Interest Period for each outstanding LIBOR Loan, either repay such Loan or
        Convert such Loan into a Base Rate Loan.
        <BR><BR></FONT></P></TD></TR>

<!--4.3 Illegality-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.3.&nbsp;&nbsp;&nbsp;&nbsp;Illegality.</B>
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Notwithstanding  any
        other provision of this Agreement, if any Lender shall reasonably determine (which
        determination  shall be conclusive  and binding)  that it has become  unlawful for
        such Lender to honor its  obligation  to make or maintain  LIBOR Loans  hereunder,
        then such Lender shall  promptly  notify the Borrower  thereof (with a copy to the
        Agent) and such Lender&#146;s  obligation to make or Continue, or to Convert Loans
        of any other Type into,  LIBOR  Loans shall be  suspended  until such time as such
        Lender may again make and maintain  LIBOR Loans (in which case the  provisions  of
        Section&#160;4.6. shall be applicable).
        <BR><BR></FONT></P></TD></TR>

<!--4.4 Compensation-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.4.&nbsp;&nbsp;&nbsp;&nbsp;Compensation.</B>
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  The  Borrower  shall
        pay to the Agent for the account of each  Lender,  upon the request of such Lender
        through  the  Agent,  such  amount  or  amounts  as  shall be  sufficient  (in the
        reasonable  opinion of such Lender) to compensate it for any loss, cost or expense
        that such Lender reasonably determines is attributable to:
        <BR><BR></FONT></P></TD></TR>
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp; any payment or prepayment (whether mandatory or optional)
        of a LIBOR Loan or Bid Rate Loan,  or  Conversion  of a LIBOR  Loan,  made by such
        Lender for any reason  (including,  without  limitation,  acceleration)  on a date
        other than the last day of the Interest Period for such Loan; or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;any  failure by the  Borrower  for any reason  (including,
        without  limitation,  the failure of any of the  applicable  conditions  precedent
        specified in Article V. to be  satisfied)  to borrow a LIBOR Loan or Bid Rate Loan
        from such Lender on the requested  date for such  borrowing,  or to Convert a Base
        Rate Loan into a LIBOR Loan or Continue a LIBOR Loan on the requested date of such
        Conversion or Continuation.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Upon the Borrower&#146;s  request,  any Lender requesting  compensation under this
        Section shall  provide the Borrower  with a statement  setting forth the basis for
        requesting  such  compensation  and the method for determining the amount thereof.
        Absent manifest error, determinations by any Lender in any such statement shall be
        conclusive,  provided that such  determinations are made on a reasonable basis and
        in good faith.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-47-</FONT></TD></TR>
</TABLE>


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                                               <PAGE>
                                            <!--Page 48-->


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--4.5 Affected Lenders-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.5.&nbsp;&nbsp;&nbsp;&nbsp;Affected Lenders.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        If (a) a Lender requests compensation pursuant to Section&#160;3.12.  or 4.1., and
        the Requisite Lenders are not requesting  compensation under such Sections, or (b)
        the  obligation  of any Lender to make LIBOR Loans or to  Continue,  or to Convert
        Base  Rate   Loans   into,   LIBOR   Loans   shall  be   suspended   pursuant   to
        Section&#160;4.1.(b) or 4.3. but the obligation of the Requisite Lenders shall not
        have been  suspended  under such  Sections,  then,  so long as there does not then
        exist any Default or Event of Default,  the  Borrower  may demand that such Lender
        (the &#147;Affected Lender&#148;),  and upon such demand the Affected Lender shall
        promptly,  assign  its  Commitment  to an  Eligible  Assignee  subject  to  and in
        accordance with the provisions of Section&#160;12.5.(d) for a purchase price equal
        to the aggregate principal balance of Loans then owing to the Affected Lender plus
        any accrued but unpaid  interest  thereon and accrued but unpaid fees owing to the
        Affected  Lender.  Each of the  Agent and the  Affected  Lender  shall  reasonably
        cooperate in  effectuating  the  replacement  of such  Affected  Lender under this
        Section, but at no time shall the Agent, such Affected Lender nor any other Lender
        be obligated in any way  whatsoever to initiate any such  replacement or to assist
        in finding an Eligible Assignee.  The exercise by the Borrower of its rights under
        this Section shall be at the Borrower&#146;s sole cost and expenses and at no cost
        or expense to the Agent,  the  Affected  Lender or any of the other  Lenders.  The
        terms of this Section shall not in any way limit the Borrower&#146;s obligation to
        pay to any Affected Lender  compensation owing to such Affected Lender pursuant to
        Section&#160;3.12. or 4.1.
        <BR><BR></FONT></P></TD></TR>

<!--4.6 Treatment of Affected Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.6.&nbsp;&nbsp;&nbsp;&nbsp;Treatment of Affected Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        If the obligation of any Lender to make LIBOR Loans or to Continue,  or to Convert
        Base Rate Loans into, LIBOR Loans shall be suspended  pursuant to Section 4.1.(b),
        4.2. or 4.3., then such Lender&#146;s LIBOR Loans shall be automatically Converted
        into Base Rate Loans on the last day(s) of the then current Interest Period(s) for
        LIBOR Loans (or, in the case of a Conversion  required by Section 4.1.(b) or 4.3.,
        on such earlier date as such Lender may specify to the Borrower with a copy to the
        Agent) and,  unless and until such Lender gives notice as provided  below that the
        circumstances  specified in Section 4.1. or 4.3. that gave rise to such Conversion
        no longer exist:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;to the extent that such Lender&#146;s
        LIBOR Loans have been so Converted, all payments and prepayments of principal that would
        otherwise be applied to such Lender&#146;s LIBOR Loans shall be applied instead to its
        Base Rate Loans; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;all  Loans that would  otherwise  be made or  Continued by
        such Lender as LIBOR Loans shall be made or Continued  instead as Base Rate Loans,
        and all Base Rate Loans of such  Lender that would  otherwise  be  Converted  into
        LIBOR Loans shall remain as Base Rate Loans.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        If such Lender gives  notice to the  Borrower  (with a copy to the Agent) that the
        circumstances  specified in Section 4.1. or 4.3. that gave rise to the  Conversion
        of such Lender&#146;s  LIBOR Loans pursuant to this Section no longer exist (which
        such Lender agrees to do promptly upon such  circumstances  ceasing to exist) at a
        time  when  LIBOR  Loans  made  by  other  Lenders  are  outstanding,   then  such
        Lender&#146;s  Base Rate  Loans  shall be  automatically  Converted,  on the first
        day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR Loans,
        to the extent
        </FONT></P></TD></TR>

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</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        necessary so that,  after  giving  effect  thereto,  all Loans held by the Lenders
        holding LIBOR Loans and by such Lender are held pro rata (as to principal amounts,
        Types and Interest Periods) in accordance with their respective Commitments.
        <BR><BR></FONT></P></TD></TR>

<!--4.7 Change of Lending Office-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.7.&nbsp;&nbsp;&nbsp;&nbsp;Change of Lending Office.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Each  Lender  agrees
        that it will use reasonable  efforts to designate an alternate Lending Office with
        respect to any of its Loans affected by the matters or circumstances  described in
        Sections 3.12.,  4.1. or 4.3. to reduce the liability of the Borrower or avoid the
        results provided thereunder, so long as such designation is not disadvantageous to
        such Lender as determined by such Lender in its sole discretion,  except that such
        Lender  shall have no  obligation  to  designate a Lending  Office  located in the
        United States of America.
        <BR><BR></FONT></P></TD></TR>

<!--4.8 Assumptions Concerning Funding of LIBOR Loans-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 4.8.&nbsp;&nbsp;&nbsp;&nbsp;Assumptions Concerning Funding of LIBOR Loans.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Calculation  of  all
        amounts  payable to a Lender under this  Article&#160;IV.  shall be made as though
        such Lender had actually  funded  LIBOR Loans  through the purchase of deposits in
        the relevant market bearing interest at the rate applicable to such LIBOR Loans in
        an amount equal to the amount of the LIBOR Loans and having a maturity  comparable
        to the relevant Interest Period; provided, however, that each Lender may fund each
        of its LIBOR Loans in any manner it sees fit and the foregoing assumption shall be
        used only for calculation of amounts payable under this Article IV.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE V-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE V. &nbsp;&nbsp;CONDITIONS PRECEDENT</B>
        <BR><BR></FONT></P></TD></TR>


<!--5.1 Initial Conditions Precedent-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 5.1.&nbsp;&nbsp;&nbsp;&nbsp;Initial Conditions Precedent.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligation of the
        Lenders to effect or permit the  occurrence  of the first Credit Event  hereunder,
        whether as the making of a Loan or the issuance of a Letter of Credit,  is subject
        to the following conditions precedent:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Agent  shall have
        received each of the following, in form and substance satisfactory to the Agent:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;  Counterparts  of this Agreement  executed by each of the
        parties hereto;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;  Revolving  Notes  and Bid  Rate  Notes  executed  by the
        Borrower,  payable to each  Lender  (or  Designated  Lender,  if  applicable)  and
        complying with the applicable  provisions of Section 2.11., and the Swingline Note
        executed by the Borrower;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
        &nbsp;&nbsp;&nbsp;&nbsp;  The Guaranty  executed by each Guarantor  existing as of
        the Effective Date;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
        &nbsp;&nbsp;&nbsp;&nbsp;  The  certificate  or  articles of  incorporation  of the
        Borrower certified by the Secretary or Assistant Secretary of the Borrower;
        </FONT></P></TD></TR>

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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)
        &nbsp;&nbsp;&nbsp;&nbsp;A good standing certificate with respect to the Borrower
        issued  as of a  recent  date  by the  Secretary  of  State  of the  state  of its
        incorporation  and  certificates of  qualification  to transact  business or other
        comparable certificates issued by the Secretary of State (and any state department
        of taxation,  as applicable) of each state in which the Borrower is required to be
        so qualified and where the failure to be so qualified could reasonably be expected
        to have a Material Adverse Effect;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)
        &nbsp;&nbsp;&nbsp;&nbsp;A certificate  of incumbency  signed by the Secretary or
        Assistant  Secretary of the  Borrower  with respect to each of the officers of the
        Borrower  authorized  to  execute  and  deliver  the Loan  Documents  to which the
        Borrower is a party and the officers of the Borrower  then  authorized  to deliver
        Notices of Borrowing,  Notices of Swingline  Borrowings,  Bid Rate Quote Requests,
        Bid Rate Quote Acceptances,  Notices of Continuation and Notices of Conversion and
        to request the issuance of Letters of Credit;
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)
        &nbsp;&nbsp;&nbsp;&nbsp;Copies, certified by the Secretary or Assistant Secretary
        of the  Borrower,  of (i) the bylaws of the  Borrower and (ii) all  corporate  (or
        comparable) action taken by the Borrower to authorize the execution,  delivery and
        performance of the Loan Documents to which the Borrower is a party;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)
        &nbsp;&nbsp;&nbsp;&nbsp;The articles of incorporation, articles of organization,
        certificate of limited partnership or other comparable  organizational  instrument
        (if any) of each Guarantor  certified by the Secretary or Assistant  Secretary (or
        other individual performing similar functions) of such Guarantor;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)
        &nbsp;&nbsp;&nbsp;&nbsp;A certificate of good standing or certificate of similar
        meaning with respect to each Guarantor issued as of a recent date by the Secretary
        of State of the state of  formation of each such  Guarantor  and  certificates  of
        qualification to transact business or other comparable certificates issued by each
        Secretary of State (and any state  department of taxation,  as applicable) of each
        state in which such Guarantor is required to be so qualified and where the failure
        to be so qualified could reasonably be expected to have a Material Adverse Effect;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)
        &nbsp;&nbsp;&nbsp;&nbsp;A certificate  of incumbency  signed by the Secretary or
        Assistant  Secretary (or other individual  performing  similar  functions) of each
        Guarantor  with respect to each of the officers of such  Guarantor  authorized  to
        execute and deliver the Loan Documents to which such Guarantor is a party;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)
        &nbsp;&nbsp;&nbsp;&nbsp;Copies certified by the Secretary or Assistant Secretary
        (or other individual  performing  similar  functions) of each Guarantor of (i) the
        by-laws of such Guarantor, if a corporation, the operating agreement, if a limited
        liability company, the partnership agreement, if a limited or general partnership,
        or other  comparable  document  in the case of any other form of legal  entity and
        (ii) all corporate,  partnership,  member or other necessary  action taken by such
        Guarantor  to  authorize  the  execution,  delivery  and  performance  of the Loan
        Documents to which it is a party;
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-50-</FONT></TD></TR>
</TABLE>

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<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)
        &nbsp;&nbsp;&nbsp;&nbsp;An opinion of counsel to the Loan Parties,  addressed to
        the Agent, the Lenders and the Swingline Lender,  addressing the matters set forth
        in Exhibit M;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)
        &nbsp;&nbsp;&nbsp;&nbsp;A  copy  of  each  of  the  documents,  instruments  and
        agreements  evidencing any of the Debt described on Schedule 6.1.(g), in each case
        certified as true,  correct and complete by the chief  executive  officer or chief
        financial officer of the Borrower;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)
        &nbsp;&nbsp;&nbsp;&nbsp;The Fees then due and payable under Section 3.6., and any
        other Fees payable to the Agent,  the Titled Agents and the Lenders on or prior to
        the Effective Date;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Compliance  Certificate  calculated as of December 31,
        2002; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)
        &nbsp;&nbsp;&nbsp;&nbsp;Such other documents,  agreements and instruments as the
        Agent on behalf of the Lenders may reasonably request; and
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
        the  good faith judgment of the Agent and the Lenders:
        <BR><BR></FONT></P></TD></TR>
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--1 COLUMN-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;There  shall not have  occurred  or become  known to the
        Agent or any of the Lenders any event,  condition,  situation  or status since the
        date of the  information  contained in the  financial  and  business  projections,
        budgets, pro forma data and forecasts concerning the Borrower and its Subsidiaries
        delivered to the Agent and the Lenders prior to the Agreement Date that has had or
        could reasonably be expected to result in a Material Adverse Effect;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;No  litigation,  action,  suit,  investigation  or other
        arbitral,  administrative  or judicial  proceeding  shall be pending or threatened
        which could  reasonably be expected to (1) result in a Material  Adverse Effect or
        (2) restrain or enjoin,  impose materially  burdensome conditions on, or otherwise
        materially  and  adversely  affect the  ability of the  Borrower or any other Loan
        Party to fulfill its obligations under the Loan Documents to which it is a party;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower and its Subsidiaries shall have received all
        approvals,  consents  and  waivers,  and shall  have  made or given all  necessary
        filings  and  notices  as  shall  be  required  to  consummate  the   transactions
        contemplated hereby without the occurrence of any default under,  conflict with or
        violation of (1) any Applicable  Law or (2) any agreement,  document or instrument
        to which the  Borrower  or any other Loan Party is a party or by which any of them
        or their  respective  properties is bound,  except for such  approvals,  consents,
        waivers,  filings  and notices  the  receipt,  making or giving of which would not
        reasonably  be likely to (A) have a Material  Adverse  Effect,  or (B) restrain or
        enjoin,  impose materially  burdensome  conditions on, or otherwise materially and
        adversely  affect the  ability of the  Borrower or any other Loan Party to fulfill
        its obligations under the Loan Documents to which it is a party; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
        &nbsp;&nbsp;&nbsp;&nbsp;There shall not have occurred or exist any other material
        disruption  of financial or capital  markets that could  reasonably be expected to
        materially  and  adversely  affect  the  transactions  contemplated  by  the  Loan
        Documents.
        </FONT></P></TD></TR>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--5.2 Conditions Precedent to All Loans and Letters of Credit-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 5.2.&nbsp;&nbsp;&nbsp;&nbsp;Conditions Precedent to All Loans and
        Letters of Credit.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  obligations  of
        the Lenders to make any Loans,  and of the Agent to issue  Letters of Credit,  are
        all subject to the further  condition  precedent  that: (a) no Default or Event of
        Default  shall exist as of the date of the making of such Loan or date of issuance
        of such Letter of Credit or would exist  immediately  after giving effect thereto;
        and (b) 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  on and as of the date of the  making of such Loan or date of
        issuance of such Letter of Credit 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 accurate on and as of such earlier date). Each
        Credit Event shall  constitute a  certification  by the Borrower to the effect set
        forth in the  preceding  sentence  (both as of the date of the  giving  of  notice
        relating to such Credit  Event and,  unless the  Borrower  otherwise  notifies the
        Agent prior to the date of such Credit Event,  as of the date of the occurrence of
        such Credit Event).  In addition,  if such Credit Event is the making of a Loan or
        the  issuance  of a  Letter  of  Credit,  the  Borrower  shall be  deemed  to have
        represented  to the Agent and the  Lenders at the time such Loan is made or Letter
        of Credit  issued that all  conditions  to the  occurrence  of such  Credit  Event
        contained in Article V. have been satisfied.
        <BR><BR></FONT></P></TD></TR>

<!--5.3 Conditions as Covenants-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 5.3.&nbsp;&nbsp;&nbsp;&nbsp;Conditions as Covenants.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Lenders  make
        any Loans,  or the Agent issues a Letter of Credit,  prior to the  satisfaction of
        all  conditions  precedent set forth in Sections 5.1. and 5.2., the Borrower shall
        nevertheless  cause such condition or conditions to be satisfied within 5 Business
        Days after the date of the making of such Loans or the  issuance of such Letter of
        Credit.  Unless set forth in writing to the  contrary,  the making of its  initial
        Loan by a Lender shall  constitute a certification by such Lender to the Agent and
        the other  Lenders that the Borrower has satisfied  the  conditions  precedent for
        initial Loans set forth in Sections 5.1. and 5.2.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE VI-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE VI. &nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES</B>
        <BR><BR></FONT></P></TD></TR>


<!--6.1 Representations and Warranties-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 6.1.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to induce the
        Agent and each  Lender to enter  into this  Agreement  and to make Loans and issue
        Letters of Credit,  the  Borrower  represents  and  warrants to the Agent and each
        Lender as follows:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>


<!--Section 6.1(a)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization; Power; Qualification</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Borrower, each other Loan Party and each other
        Subsidiary is a corporation,  partnership or other legal entity, duly organized or
        formed,  validly  existing  and in good  standing  under the  jurisdiction  of its
        incorporation  or  formation,  has the  power  and  authority  to own or lease its
        respective  properties  and to carry on its  respective  business as now being and
        hereafter  proposed to be conducted and is duly  qualified and is in good standing
        as a foreign corporation,  partnership or other legal entity, and authorized to do
        business,  in each  jurisdiction  in which the character of its  properties or the
        nature of its
       </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-52-</FONT></TD></TR>
</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--6.1(a) - continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        business requires such  qualification or authorization and where the failure to be
        so qualified or authorized could reasonably be expected to have, in each instance,
        a Material Adverse Effect.
        <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(b)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Ownership Structure</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;As of the Agreement Date Part I of Schedule 6.1.(b) is a
        complete and correct list of all  Subsidiaries  of the Borrower  setting forth for
        each such  Subsidiary,  (i) the  jurisdiction of organization of such  Subsidiary,
        (ii) the type of legal entity of such  Subsidiary,  (iii) each Person  holding any
        Equity Interests in such Subsidiary,  (iv) the nature of the Equity Interests held
        by  each  such  Person,  (v)  the  percentage  of  ownership  of  such  Subsidiary
        represented  by such Equity  Interests  and (vi)  whether  such  Subsidiary  is an
        Excluded  Subsidiary.  Except as disclosed in such  Schedule,  as of the Agreement
        Date (i) each of the Borrower  and its  Subsidiaries  owns,  free and clear of all
        Liens, and has the unencumbered right to vote, all outstanding Equity Interests in
        each Person  shown to be held by it on such  Schedule,  (ii) all of the issued and
        outstanding  capital  stock of each such  Person  organized  as a  corporation  is
        validly issued,  fully paid and  nonassessable  and (iii) there are no outstanding
        subscriptions,  options, warrants, commitments, preemptive rights or agreements of
        any kind (including,  without limitation,  any stockholders&#146;  or voting trust
        agreements)  for the issuance,  sale,  registration  or voting of, or  outstanding
        securities  convertible into, any additional shares of capital stock of any class,
        or partnership or other ownership interests of any type in, any such Person. As of
        the  Agreement  Date  Part  II  of  Schedule  6.1.(b)  correctly  sets  forth  all
        Unconsolidated  Affiliates  of the  Borrower,  including the correct legal name of
        such  Person,  the type of legal  entity which each such Person is, and all Equity
        Interests in such Person held directly or indirectly by the Borrower.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(c)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization of Agreement, Etc</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower has the right and power,  and has taken all
        necessary  action to authorize it, to borrow and obtain other extensions of credit
        hereunder. The Borrower and each other Loan Party has the right and power, and has
        taken all necessary  action to authorize it, to execute,  deliver and perform each
        of the Loan Documents to which it is a party in accordance  with their  respective
        terms and to consummate the transactions contemplated hereby and thereby. The Loan
        Documents  to which the Borrower or any other Loan Party is a party have been duly
        executed and delivered by the duly authorized  officers of such Person and each is
        a legal,  valid and binding  obligation  of such Person  enforceable  against such
        Person in accordance  with its respective  terms except as the same may be limited
        by  bankruptcy,  insolvency,  and  other  similar  laws  affecting  the  rights of
        creditors generally and the availability of equitable remedies for the enforcement
        of certain  obligations (other than the payment of principal)  contained herein or
        therein may be limited by equitable principles generally.
       <BR><BR></FONT></P></TD></TR>


<!--Section 6.1(d)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance of Loan Documents with Laws, Etc</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  execution,   delivery  and   performance  of  this
        Agreement,  the Notes and the other Loan  Documents  to which the  Borrower or any
        other Loan Party is a party in  accordance  with  their  respective  terms and the
        borrowings  and other  extensions of credit  hereunder do not and will not, by the
        passage of time,  the giving of notice,  or both:  (i)  require  any  Governmental
        Approval or violate any Applicable Law (including all Environmental Laws) relating
        to the Borrower or any other Loan Party; (ii) conflict with, result in a breach of
        or constitute a default under the organizational  documents of the Borrower or any
        other Loan Party,  or any  indenture,  agreement or other  instrument to which the
        Borrower  or  any  other  Loan  Party  is a  party  or by  which  it or any of its
        respective properties may
       </FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-53-</FONT></TD></TR>
</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--6.1(d) - continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        be bound;  or  (iii)&#160;result  in or require the creation or  imposition of any
        Lien upon or with respect to any  property now owned or hereafter  acquired by the
        Borrower or any other Loan Party.
        <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(e)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance with Law; Governmental Approvals</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower, each Subsidiary and each other Loan Party is
        in compliance with each Governmental  Approval  applicable to it and in compliance
        with all other Applicable Laws (including without limitation,  Environmental Laws)
        relating  to the  Borrower,  a  Subsidiary  or such other  Loan  Party  except for
        noncompliances  which,  and  Governmental  Approvals the failure to possess which,
        would not,  individually or in the aggregate,  cause a Default or Event of Default
        or have a Material Adverse Effect.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(f)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title to Properties</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;As  of the Agreement Date, Schedule 6.1.(f) sets forth all
        of the real property  owned or leased by the  Borrower,  each other Loan Party and
        each other Subsidiary.  Each such Person has good,  marketable and legal title to,
        or a valid leasehold interest in, its respective assets.
       <BR><BR></FONT></P></TD></TR>


<!--Section 6.1(g)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Existing Debt</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Schedule  6.1.(g) is, as of the Agreement Date, a complete
        and correct  listing of all Debt of the Borrower and its  Subsidiaries,  including
        without  limitation,   Guarantees  of  the  Borrower  and  its  Subsidiaries,  and
        indicating  whether such Debt is Secured Debt or Unsecured  Debt. The Borrower and
        its  Subsidiaries  have performed and are in material  compliance  with all of the
        terms of such Debt and all instruments and agreements relating thereto.
       <BR><BR></FONT></P></TD></TR>


<!--Section 6.1(h)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Except  as set  forth on  Schedule  6.1.(h),  there are no
        actions,  suits,  investigations or proceedings  pending (nor, to the knowledge of
        the Borrower, are there any actions, suits or proceedings  threatened,  nor to the
        knowledge of the Borrower is there any basis therefor) against or in any other way
        relating adversely to or affecting the Borrower,  any Subsidiary or any other Loan
        Party or any of its  respective  property in any court or before any arbitrator of
        any kind or before or by any other  Governmental  Authority which could reasonably
        be expected to have a Material Adverse Effect.  There are no strikes,  slow downs,
        work  stoppages  or  walkouts or other  labor  disputes in progress or  threatened
        relating  to the  Borrower,  any  Subsidiary  or any other Loan Party  which could
        reasonably be expected to have a Material Adverse Effect.
       <BR><BR></FONT></P></TD></TR>


<!--Section 6.1(i)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;All  federal, state and other tax returns of the Borrower,
        any Subsidiary or any other Loan Party required by Applicable Law to be filed have
        been duly filed,  and all federal,  state and other taxes,  assessments  and other
        governmental  charges or levies upon the Borrower,  any  Subsidiary and each other
        Loan Party and its respective properties, income, profits and assets which are due
        and  payable  have been  paid,  except  any such  nonpayment  which is at the time
        permitted  under Section 7.5. As of the Agreement  Date, none of the United States
        income tax returns of the Borrower,  its  Subsidiaries  or any other Loan Party is
        under audit.  All charges,  accruals and reserves on the books of the Borrower and
        each of its  Subsidiaries  and each  other  Loan  Party in respect of any taxes or
        other governmental charges are in accordance with GAAP.
       </FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-54-</FONT></TD></TR>
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        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--6.1(j)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial Statements</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower has  furnished to each Lender  copies of the
        audited   consolidated   balance  sheet  of  the  Borrower  and  its  consolidated
        Subsidiaries for the fiscal year ending December 31, 2002, and the related audited
        consolidated  statements of earnings,  cash flows and stockholders' equity for the
        fiscal  year  ending on such dates,  with the  opinion  thereon of KPMG LLP.  Such
        financial  statements  (including  in each case related  schedules  and notes) are
        complete and correct and present fairly, in accordance with GAAP, the consolidated
        financial  position of the Borrower and its consolidated  Subsidiaries as at their
        respective dates and the results of operations and the cash flow for such periods.
        Neither the Borrower nor any of its  Subsidiaries  has on the  Agreement  Date any
        material contingent  liabilities,  liabilities,  liabilities for taxes, unusual or
        long-term  commitments  or  unrealized  or  forward  anticipated  losses  from any
        unfavorable  commitments,  except as referred to or  reflected  or provided for in
        said financial statements.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(k)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Material Adverse Change</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Since December 31, 2002, there has been no material adverse
        change in the business, assets,  liabilities,  condition (financial or otherwise),
        results of operations or business  prospects of the Borrower and its  consolidated
        Subsidiaries  taken as a whole. Each of the Borrower and the other Loan Parties is
        Solvent and the Borrower and its Subsidiaries, taken as a whole, are Solvent.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(l)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>ERISA</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each  member of the ERISA Group is in compliance  with its
        obligations  under the minimum funding standards of ERISA and the Internal Revenue
        Code with respect to each Plan and is in compliance with the presently  applicable
        provisions  of ERISA and the  Internal  Revenue  Code with  respect  to each Plan,
        except in each case for  noncompliances  which could not reasonably be expected to
        have a Material  Adverse Effect.  As of the Agreement Date, no member of the ERISA
        Group has (i) sought a waiver of the minimum funding standard under Section 412 of
        the  Internal  Revenue  Code in  respect  of any  Plan,  (ii)  failed  to make any
        contribution  or  payment to any Plan or  Multiemployer  Plan or in respect of any
        Benefit  Arrangement,  or made any  amendment to any Plan or Benefit  Arrangement,
        which has resulted or could result in the imposition of a Lien or the posting of a
        bond or other security under ERISA or the Internal  Revenue Code or (iii) incurred
        any  liability  under  Title IV of ERISA  other than a  liability  to the PBGC for
        premiums under Section 4007 of ERISA.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(m)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Not Plan Assets; No Prohibited Transaction</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;None  of the assets of the Borrower, any Subsidiary or any
        other  Loan Party  constitute  "plan  assets"  within  the  meaning of ERISA,  the
        Internal Revenue Code and the respective regulations promulgated  thereunder.  The
        execution,  delivery  and  performance  of  this  Agreement  and  the  other  Loan
        Documents,  and the borrowing and repayment of amounts hereunder,  do not and will
        not constitute "prohibited transactions" under ERISA or the Internal Revenue Code.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(n)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence of Material Defaults</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Neither  the Borrower,  any  Subsidiary nor any other Loan
        Party is in default under its  certificate or articles of  incorporation,  bylaws,
        partnership agreement or other similar organizational  documents, and no event has
        occurred,  which has not been remedied,  cured or waived:  (i) which constitutes a
        Default  or an Event of  Default;  or (ii)  which  constitutes,  or which with the
        passage  of time,  the giving of  notice,  a  determination  of  materiality,  the
        satisfaction  of  any  condition,  or any  combination  of  the  foregoing,  would
        constitute,  a default or event of default by the Borrower,  any Subsidiary or any
        other Loan Party
       </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-55-</FONT></TD></TR>
</TABLE>


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<!--6.1(n) continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        under any agreement  (other than this  Agreement) or judgment,  decree or order to
        which the  Borrower or any  Subsidiary  or other Loan Party is a party or by which
        the  Borrower  or any  Subsidiary  or other Loan Party or any of their  respective
        properties may be bound where such default or event of default could, individually
        or in the aggregate, have a Material Adverse Effect.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(o)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental Laws</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each  of the Borrower, its Subsidiaries and the other Loan
        Parties  has  obtained  all  Governmental   Approvals  which  are  required  under
        Environmental  Laws and is in  compliance  with all terms and  conditions  of such
        Governmental  Approvals  which the  failure  to obtain  or to  comply  with  could
        reasonably be expected to have a Material  Adverse  Effect.  Except for any of the
        following matters that could not be reasonably expected to have a Material Adverse
        Effect,  (i) the  Borrower  is not aware of, and has not  received  notice of, any
        past, present, or future events, conditions, circumstances, activities, practices,
        incidents, actions, or plans which, with respect to the Borrower, its Subsidiaries
        and each other Loan Party,  may interfere with or prevent  compliance or continued
        compliance  with  Environmental  Laws, or may give rise to any common-law or legal
        liability,  or  otherwise  form the  basis of any  claim,  action,  demand,  suit,
        proceeding,  hearing,  study,  or  investigation,  based  on  or  related  to  the
        manufacture,   processing,   distribution,   use,  treatment,  storage,  disposal,
        transport, or handling or the emission,  discharge,  release or threatened release
        into the  environment,  of any pollutant,  contaminant,  chemical,  or industrial,
        toxic,  or other  Hazardous  Material,  and (ii) there is no civil,  criminal,  or
        administrative  action, suit, demand,  claim,  hearing,  notice, or demand letter,
        notice of violation,  investigation,  or proceeding  pending or, to the Borrower's
        knowledge after due inquiry,  threatened,  against the Borrower,  its Subsidiaries
        and each other Loan Party relating in any way to Environmental Laws.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(p)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment Company; Public Utility Holding Company</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Neither the  Borrower nor any  Subsidiary  nor any other
        Loan   Party   is   (i)   an   &#147;investment   company&#148;   or   a   company
        &#147;controlled&#148;  by an &#147;investment company&#148; within the meaning of
        the Investment Company Act of 1940, as amended, (ii) a &#147;holding company&#148;
        or a  &#147;subsidiary  company&#148;  of a  &#147;holding  company&#148;,  or  an
        &#147;affiliate&#148;  of a &#147;holding  company&#148;  or of a &#147;subsidiary
        company&#148;  of a &#147;holding company&#148;,  within the meaning of the Public
        Utility  Holding  Company Act of 1935,  as amended,  or (iii) subject to any other
        Applicable  Law which purports to regulate or restrict its ability to borrow money
        or to consummate the transactions contemplated by this Agreement or to perform its
        obligations under any Loan Document to which it is a party.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(q)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Margin Stock</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower,  any Subsidiary nor any other Loan
        Party  is  engaged  principally,  or as one of its  important  activities,  in the
        business of extending  credit for the purpose,  whether  immediate,  incidental or
        ultimate,  of buying or carrying  &#147;margin  stock&#148;  within the meaning of
        Regulation U of the Board of Governors of the Federal Reserve System.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(r)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Affiliate Transactions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Except  as  permitted  by  Section  9.10.,  neither  the
        Borrower,  any  Subsidiary  nor any other Loan Party is a party to or bound by any
        agreement or  arrangement  (whether oral or written) to which any Affiliate of the
        Borrower, any Subsidiary or any other Loan Party is a party.
       </FONT></P></TD></TR>

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<!--Section 6.1(s)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Intellectual Property</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each of the  Borrower,  each  other  Loan Party and each
        other  Subsidiary owns or has the right to use, under valid license  agreements or
        otherwise,  all material  patents,  licenses,  franchises,  trademarks,  trademark
        rights,   trade  names,   trade  name  rights,   trade   secrets  and   copyrights
        (collectively,  &#147;Intellectual Property&#148;) necessary to the conduct of its
        businesses as now conducted and as  contemplated  by the Loan  Documents,  without
        known conflict with any patent, license, franchise, trademark, trade secret, trade
        name,  copyright,  or other proprietary  right of any other Person.  The Borrower,
        each other Loan Party and each other  Subsidiary have taken all such steps as they
        reasonably  deem  necessary  to protect  their  respective  rights  under and with
        respect to such Intellectual  Property. No material claim has been asserted by any
        Person with respect to the use of any Intellectual  Property by the Borrower,  any
        other  Loan Party or any other  Subsidiary,  or  challenging  or  questioning  the
        validity  or  effectiveness  of  any  Intellectual   Property.  The  use  of  such
        Intellectual  Property  by the  Borrower,  its  Subsidiaries  and the  other  Loan
        Parties, does not infringe on the rights of any Person, subject to such claims and
        infringements  as do not, in the  aggregate,  give rise to any  liabilities on the
        part of the  Borrower,  any other  Loan Party or any other  Subsidiary  that could
        reasonably be expected to have a Material Adverse Effect.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(t)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Business</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;As  of  the  Agreement   Date,  the  Borrower  and  its
        Subsidiaries are engaged in the business of acquiring, owning, financing, leasing,
        managing,  developing  and selling  retail,  office and  industrial  real property
        generally  leased to credit-worthy  tenants under net leases,  together with other
        business activities incidental thereto.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(u)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Broker&#146;s Fees</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;No  broker&#146;s or  finder&#146;s  fee,  commission or
        similar compensation will be payable with respect to the transactions contemplated
        hereby. No other similar fees or commissions will be payable by any Loan Party for
        any other services  rendered to the Borrower or any of its Subsidiaries  ancillary
        to the transactions contemplated hereby.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(v)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Accuracy and Completeness of Information</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;No written  information,  report or other papers or data
        (excluding financial  projections and other forward looking statements)  furnished
        to the Agent or any Lender by, on behalf of, or at the direction of, the Borrower,
        any  Subsidiary or any other Loan Party in connection  with or relating in any way
        to this  Agreement,  contained  any untrue  statement  of a fact  material  to the
        creditworthiness  of the  Borrower,  any  Subsidiary  or any other  Loan  Party or
        omitted  to state a  material  fact  necessary  in order to make  such  statements
        contained therein,  in light of the circumstances  under which they were made, not
        misleading.  All financial  statements furnished to the Agent or any Lender by, on
        behalf of, or at the direction of, the Borrower,  any Subsidiary or any other Loan
        Party in connection with or relating in any way to this Agreement, present fairly,
        in accordance with GAAP consistently applied throughout the periods involved,  the
        financial  position of the Persons involved as at the date thereof and the results
        of  operations  for such  periods.  All  financial  projections  and other forward
        looking statements prepared by or on behalf of the Borrower, any Subsidiary or any
        other Loan Party that have been or may hereafter be made available to the Agent or
        any Lender were or will be prepared in good faith based on reasonable assumptions.
        As of the Effective  Date, no fact is known to the Borrower  which has had, or may
        in the future have (so far as the Borrower  can  reasonably  foresee),  a Material
        Adverse Effect which has not been set forth in the financial  statements  referred
        to in Section 6.1.(j) or in such  information,  reports or other papers or data or
        otherwise disclosed in writing to the Agent and the Lenders.
       </FONT></P></TD></TR>


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        <TD WIDTH=95%></TD></TR>

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<!--Section 6.1(w)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>REIT Status</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower qualifies as a REIT and is in compliance with
        all requirements  and conditions  imposed under the Internal Revenue Code to allow
        the Borrower to maintain its status as a REIT.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(x)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Unencumbered Assets</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;As of the Agreement Date,  Schedule 6.1.(x) is a correct
        and complete list of all Unencumbered  Assets.  Each of the assets included by the
        Borrower  in  calculations  of  Unencumbered  Asset  Value  satisfies  all  of the
        requirements contained in the definition of &#147;Unencumbered Asset&#148;.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.1(y)-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax Shelter Regulations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;None of the Borrower, any other Loan Party nor any other
        Subsidiary  intends  to treat  the  Loans,  the  Letters  of  Credit or any of the
        transactions  contemplated by this Agreement and the other Loan Documents as being
        a &#147;reportable  transaction&#148;  (within the meaning of Treasury  Regulation
        Section 1.6011-4).  If the Borrower,  any other Loan Party or any other Subsidiary
        determines to take any action inconsistent with such intention,  the Borrower will
        promptly notify the Agent thereof.  If the Borrower so notifies the Agent, (i) the
        Borrower  acknowledges  that one or more of the  Lenders  may  treat  its Loans or
        interest in Letters of Credit as part of a transaction that is subject to Treasury
        Regulation Section  301.6112-1,  and such Lender or Lenders,  as applicable,  will
        maintain the lists and other records all as required by such  Treasury  Regulation
        and (ii) the Borrower  shall,  promptly  after giving such notice,  deliver to the
        Agent a duly completed copy of IRS Form 8886 or any successor form.
       <BR><BR></FONT></P></TD></TR>

<!--Section 6.2 Survival of Representations and Warranties, Etc.-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 6.2 &nbsp;&nbsp;&nbsp;&nbsp;
        Survival of Representations and Warranties, Etc.</B>
       <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All    statements
        contained in any certificate, financial statement or other instrument delivered by
        or on behalf of the Borrower,  any Subsidiary or any other Loan Party to the Agent
        or any Lender pursuant to or in connection with this Agreement or any of the other
        Loan  Documents  (including,  but not limited to, any such statement made in or in
        connection  with  any  amendment  thereto  or  any  statement   contained  in  any
        certificate,  financial statement or other instrument delivered by or on behalf of
        the Borrower  prior to the Agreement Date and delivered to the Agent or any Lender
        in connection with closing the transactions  contemplated hereby) shall constitute
        representations  and warranties  made by the Borrower in favor of the Agent or any
        of the Lenders under this Agreement. All representations and warranties made under
        this Agreement and the other Loan  Documents  shall be deemed to be made at and as
        of the Agreement  Date, the Effective Date, the date on which any extension of the
        Termination  Date is  effectuated  pursuant to Section  2.12.  and the date of the
        occurrence of any Credit Event, 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 accurate on and as of such
        earlier  date) and  except  for  changes  in  factual  circumstances  specifically
        permitted  hereunder.  All such  representations  and warranties shall survive the
        effectiveness of this Agreement,  the execution and delivery of the Loan Documents
        and the making of the Loans and the issuance of the Letters of Credit.
       </FONT></P></TD></TR>

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<!--ARTICLE VII-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE VII. &nbsp;&nbsp;AFFIRMATIVE COVENANTS</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so  long as this
        Agreement is in effect,  unless the Requisite Lenders (or, if required pursuant to
        Section 12.6., all of the Lenders) shall otherwise  consent in the manner provided
        for in Section 12.6., the Borrower shall comply with the following covenants:
       <BR><BR></FONT></P></TD></TR>

<!--7.1 Preservation of Existence and Similar Matters-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.1.&nbsp;&nbsp;&nbsp;&nbsp;Preservation of Existence and Similar Matters.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as  otherwise
        permitted under Section 9.7., the Borrower shall,  and shall cause each Subsidiary
        and each other Loan Party to,  preserve  and maintain  its  respective  existence,
        rights,   franchises,   licenses  and  privileges  in  the   jurisdiction  of  its
        incorporation  or formation and qualify and remain  qualified and authorized to do
        business in each  jurisdiction  in which the  character of its  properties  or the
        nature of its business requires such qualification and authorization and where the
        failure to be so authorized and qualified  could  reasonably be expected to have a
        Material Adverse Effect.
        <BR><BR></FONT></P></TD></TR>

<!--7.2 Compliance with Applicable Law-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.2.&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Applicable Law.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall,
        and shall  cause each  Subsidiary  and each other Loan Party to,  comply  with all
        Applicable  Laws,  including  the  obtaining of all  Governmental  Approvals,  the
        failure  with which to comply  could  reasonably  be  expected  to have a Material
        Adverse Effect.
        <BR><BR></FONT></P></TD></TR>

<!--7.3 Maintenance of Property-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.3.&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Property.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In  addition  to the
        requirements  of any of the other Loan Documents,  the Borrower  shall,  and shall
        cause each Subsidiary and other Loan Party to, (a) protect and preserve all of its
        material properties, including, but not limited to, all Intellectual Property, and
        maintain in good repair,  working  order and  condition  all tangible  properties,
        ordinary wear and tear  excepted,  and (b) make or cause to be made all needed and
        appropriate repairs,  renewals,  replacements and additions to such properties, so
        that  the  business  carried  on in  connection  therewith  may  be  properly  and
        advantageously conducted at all times.
        <BR><BR></FONT></P></TD></TR>

<!--7.4 Insurance-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.4.&nbsp;&nbsp;&nbsp;&nbsp;Insurance.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In  addition  to the
        requirements  of any of the other Loan Documents,  the Borrower  shall,  and shall
        cause  each  Subsidiary  and other Loan Party to,  maintain  insurance  (on a full
        replacement cost basis) with financially sound and reputable  insurance  companies
        against such risks and in such  amounts as is  customarily  maintained  by Persons
        engaged in similar  businesses or as may be required by  Applicable  Law, and from
        time to time deliver to the Agent upon its request a detailed list,  together with
        copies of all policies of the insurance  then in effect if requested,  stating the
        names of the  insurance  companies,  the amounts and rates of the  insurance,  the
        dates of the  expiration  thereof and the  properties  and risks covered  thereby.
        Subject to the requirements of any applicable lease, the Borrower shall, and shall
        cause its  Subsidiaries  to, apply any proceeds from such insurance  coverage with
        respect to any Unencumbered Asset to either (i) repair or rebuild the property for
        which such proceeds are being received,  (ii) acquire a  substantially  equivalent
        property or (iii) repay Obligations.
        </FONT></P></TD></TR>


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<!--7.5 Payment of Taxes and Claims-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.5.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Taxes and Claims.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall,
        and shall cause each  Subsidiary  and other Loan Party to, pay and discharge  when
        due (a) all taxes,  assessments and governmental charges or levies imposed upon it
        or upon its income or profits or upon any properties  belonging to it, and (b) all
        lawful claims of materialmen,  mechanics, carriers, warehousemen and landlords for
        labor,  materials,  supplies and rentals which, if unpaid,  might become a Lien on
        any  properties  of such Person;  provided,  however,  that this Section shall not
        require the payment or  discharge  of any such tax,  assessment,  charge,  levy or
        claim which is being  contested  in good faith by  appropriate  proceedings  which
        operate to suspend the  collection  thereof and for which  adequate  reserves have
        been established on the books of the Borrower,  such Subsidiary or such other Loan
        Party, as applicable, in accordance with GAAP.
        <BR><BR></FONT></P></TD></TR>


<!--7.6 Visits and Inspections-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.6.&nbsp;&nbsp;&nbsp;&nbsp;Visits and Inspections.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall,
        and shall cause each Subsidiary and other Loan Party to, permit representatives or
        agents of any Lender or the Agent, from time to time after reasonable prior notice
        if no  Event  of  Default  shall be in  existence,  as often as may be  reasonably
        requested,  but only during normal  business hours and at all times subject to the
        rights of tenants  under their  respective  leases,  to: (a) visit and inspect all
        properties  of the Borrower or such  Subsidiary  or other Loan Party to the extent
        any such  right to visit or inspect is within  the  control  of such  Person;  (b)
        inspect and make extracts from their respective  books and records,  including but
        not limited to management  letters  prepared by independent  accountants;  and (c)
        discuss with its officers and  employees,  and its  independent  accountants,  its
        business,  properties,  condition (financial or otherwise),  results of operations
        and  performance.  If  requested  by the  Agent,  the  Borrower  shall  execute an
        authorization letter addressed to the Borrower&#146;s  accountants authorizing the
        Agent to discuss the financial  affairs of the Borrower and any  Subsidiary or any
        other Loan Party with its accountants; <U>provided</U>, <U>however</U>, so long as
        no Default or Event of Default exists, the Borrower shall have the right to have a
        representative  present during any such discussions.  The Borrower shall reimburse
        the Agent and, if an Event of Default  exists,  the  Lenders,  for their costs and
        expenses  incurred in  connection  with the  exercise of their  rights  under this
        Section.
        <BR><BR></FONT></P></TD></TR>

<!--7.7 Use of Proceeds; Letters of Credit-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.7.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds; Letters of Credit.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        use the  proceeds  of the Loans and the  Letters of Credit for  general  corporate
        purposes only. The Borrower and the Guarantors shall not, and shall not permit any
        other Loan Party or any of their respective  Subsidiaries to, use any part of such
        proceeds or any Letter of Credit to  purchase or carry,  or to reduce or retire or
        refinance any credit  incurred to purchase or carry,  any margin stock (within the
        meaning of Regulation U of the Board of Governors of the Federal  Reserve  System)
        or to extend  credit to others for the purpose of  purchasing or carrying any such
        margin stock;  <U>provided</U>,  <U>however</U>,  the Borrower may use proceeds of
        the Loans and Letters of Credit to purchase  the  Borrower&#146;s  common stock so
        long as such use will not result in any of the  Loans,  Letters of Credit or other
        Obligations  being  considered  to  be  &#147;purpose  credit&#148;   directly  or
        indirectly  secured  by  margin  stock  within  the  meaning  of  Regulation  U or
        Regulation X of the Board of Governors of the Federal Reserve System.
        </FONT></P></TD></TR>


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<!--7.8 Environmental Matters-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.8.&nbsp;&nbsp;&nbsp;&nbsp;Environmental Matters.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall,
        and shall cause all of its Subsidiaries and the other Loan Parties to, comply with
        all  Environmental  Laws the  failure  with which to comply  could  reasonably  be
        expected to have a Material Adverse Effect. If the Borrower, any Subsidiary or any
        other Loan Party shall (a) receive notice that any violation of any  Environmental
        Law may have  been  committed  or is about to be  committed  by such  Person,  (b)
        receive  notice that any  administrative  or judicial  complaint or order has been
        filed or is about to be filed  against the Borrower,  any  Subsidiary or any other
        Loan Party alleging violations of any Environmental Law or requiring the Borrower,
        any  Subsidiary or any other Loan Party to take any action in connection  with the
        release of  Hazardous  Materials  or (c) receive  any notice  from a  Governmental
        Authority or private party alleging that the Borrower, any Subsidiary or any other
        Loan Party may be liable or responsible for costs associated with a response to or
        cleanup of a release of Hazardous  Materials or any damages  caused  thereby,  and
        such notices,  individually or in the aggregate,  could  reasonably be expected to
        have a Material  Adverse  Effect,  the Borrower  shall  provide the Agent and each
        Lender with a copy of such notice  promptly,  and in any event  within 10 Business
        Days, after the receipt thereof by the Borrower,  any Subsidiary or any other Loan
        Party.  The Borrower shall,  and shall cause its  Subsidiaries  and the other Loan
        Parties to, take promptly all actions  necessary to prevent the  imposition of any
        Liens on any of their  respective  properties  arising  out of or  related  to any
        Environmental Laws.
        <BR><BR></FONT></P></TD></TR>

<!--7.9 Books and Records-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.9.&nbsp;&nbsp;&nbsp;&nbsp;Books and Records.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall,
        and shall cause each of its  Subsidiaries  and the other Loan Parties to, maintain
        books and records pertaining to its respective business operations in such detail,
        form and scope as is consistent with good business practice and in accordance with
        GAAP.
        <BR><BR></FONT></P></TD></TR>

<!--7.10 Further Assurances-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.10.&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall,
        at the Borrower&#146;s cost and expense and upon request of the Agent, execute and
        deliver  or  cause  to be  executed  and  delivered,  to the  Agent  such  further
        instruments,  documents and certificates, and do and cause to be done such further
        acts that may be reasonably  necessary or advisable in the  reasonable  opinion of
        the  Agent to carry out more  effectively  the  provisions  and  purposes  of this
        Agreement and the other Loan Documents.
        <BR><BR></FONT></P></TD></TR>

<!--7.11 New Subsidiaries/Guarantors-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.11.&nbsp;&nbsp;&nbsp;&nbsp;New Subsidiaries/Guarantors.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Requirement to Become Guarantor</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Within  10  Business  Days of any  Person  (other  than an
        Excluded  Subsidiary) becoming a Subsidiary after the Effective Date, the Borrower
        shall deliver to the Agent each of the following items, each in form and substance
        satisfactory to the Agent: (i) an Accession  Agreement executed by such Subsidiary
        and (ii) the items that would have been  delivered  under  Sections  5.1.(a)(viii)
        through (xiii) and (xvi) if such Subsidiary had been one on the Effective Date;
        <U>provided</U>,  <U>however</U>,  promptly  (and in any event  within 10 Business
        Days) upon any  Subsidiary  ceasing to qualify  as an  Excluded  Subsidiary,  such
        Subsidiary  shall comply with the provisions of this Section.  Upon the request of
        any
        </FONT></P></TD></TR>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<!--7.11 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Lender,  the Agent shall send to such Lender a copy of each of the foregoing items
        received by the Agent with respect to a Subsidiary.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release of a Guarantor</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  may  request  in  writing  that  the  Agent
        release,  and upon  receipt of such request the Agent shall  release,  a Guarantor
        from  the  Guaranty  so  long  as:  (i)  such  Guarantor   meets,   or  will  meet
        simultaneously  with its release from the Guaranty,  all of the  provisions of the
        definition  of  the  term   &#147;Excluded   Subsidiary&#148;   and  none  of  the
        Guarantor&#146;s  Properties  or other  assets are to be taken into  account  when
        calculating  Unencumbered  Asset  Value;  (ii)  such  Guarantor  is not  otherwise
        required to be a party to the Guaranty under the immediately  preceding subsection
        (a);  (iii) no  Default or Event of Default  shall then be in  existence  or would
        occur as a result of such  release,  including  without  limitation,  a Default or
        Event of Default  resulting from a violation of any of the covenants  contained in
        Section 9.1.; and (iv) the 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 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.
        <BR><BR></FONT></P></TD></TR>

<!--7.12 REIT Status-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.12.&nbsp;&nbsp;&nbsp;&nbsp;REIT Status.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower shall at
        all times maintain its status as a REIT.
        <BR><BR></FONT></P></TD></TR>

<!--7.13 Exchange Listing-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 7.13.&nbsp;&nbsp;&nbsp;&nbsp;Exchange Listing.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        maintain  at least one  class of common  shares  of the  Borrower  having  trading
        privileges on the New York Stock  Exchange or the American Stock Exchange or which
        is the subject of price quotations in the  over-the-counter  market as reported by
        the National Association of Securities Dealers Automated Quotation System.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE VIII-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE VIII. &nbsp;&nbsp;INFORMATION</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so  long as this
        Agreement is in effect,  unless the Requisite Lenders (or, if required pursuant to
        Section 12.6., all of the Lenders) shall otherwise consent in the manner set forth
        in Section 12.6., the Borrower shall furnish to each Lender (or to the Agent if so
        provided below) at its Lending Office:
       <BR><BR></FONT></P></TD></TR>

<!--8.1 Quarterly Financial Statements-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 8.1.&nbsp;&nbsp;&nbsp;&nbsp;Quarterly Financial Statements.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As soon as available
        and in any event  within 45 days after the close of each of the first,  second and
        third fiscal quarters of the Borrower, the unaudited consolidated balance sheet of
        the  Borrower  and its  Subsidiaries  as at the end of such period and the related
        unaudited consolidated  statements of earnings, and cash flows of the Borrower and
        its Subsidiaries  for such period,  setting forth in each case in comparative form
        the  figures as of the end of and for the  corresponding  periods of the  previous
        fiscal year,  all of which shall be certified  by the chief  executive  officer or
        chief financial officer of the Borrower, in his or her opinion, to present fairly,
        in accordance with GAAP and in all material respects,  the consolidated  financial
        position
        </FONT></P></TD></TR>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<!--8.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        of the  Borrower  and its  Subsidiaries  as at the date thereof and the results of
        operations for such period (subject to normal year-end audit adjustments).
        <BR><BR></FONT></P></TD></TR>

<!--8.2 Year-End Statements-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 8.2.&nbsp;&nbsp;&nbsp;&nbsp;Year-End Statements.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within 90 days after
        the end of each fiscal year of the  Borrower,  the  audited  consolidated  balance
        sheet of the Borrower and its  Subsidiaries  as at the end of such fiscal year and
        the related audited consolidated statements of earnings, stockholders&#146; equity
        and cash flows of the Borrower and its Subsidiaries for such fiscal year,  setting
        forth in comparative form the figures as at the end of and for the previous fiscal
        year, all of which shall be certified by (a) the chief executive  officer or chief
        financial  officer of the Borrower,  in his or her opinion,  to present fairly, in
        accordance with GAAP, the consolidated  financial position of the Borrower and its
        Subsidiaries  as at the date thereof and the results of operations for such period
        and (b) independent  certified public accountants of recognized  national standing
        acceptable to the Agent,  whose  certificate shall be unqualified and in scope and
        substance  satisfactory to the Requisite Lenders and who shall have authorized the
        Borrower to deliver such  financial  statements and  certification  thereof to the
        Agent and the Lenders pursuant to this Agreement.
        <BR><BR></FONT></P></TD></TR>

<!--8.3 Compliance Certificate; Additional Information-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 8.3.&nbsp;&nbsp;&nbsp;&nbsp;Compliance Certificate; Additional Information.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time financial
        statements are furnished pursuant to Sections 8.1. and 8.2., and within 5 Business
        Days of the  Agent&#146;s  request  with  respect to any other  fiscal  period,  a
        certificate   substantially   in  the  form  of  Exhibit  N  (a   &#147;Compliance
        Certificate&#148;)  executed by the chief financial  officer of the Borrower:  (a)
        setting  forth in  reasonable  detail as at the end of such  quarterly  accounting
        period,  fiscal year, or other fiscal period, as the case may be, the calculations
        required to  establish  whether or not the  Borrower  was in  compliance  with the
        covenants  contained in Sections 9.1.,  9.2. and 9.4. and (b) stating that, to the
        best of his or her knowledge, information and belief after due inquiry, no Default
        or Event of Default exists,  or, if such is not the case,  specifying such Default
        or Event of Default and its nature, when it occurred, whether it is continuing and
        the steps being taken by the  Borrower  with  respect to such event,  condition or
        failure.  Together  with  any  Compliance  Certificate  delivered  with  financial
        statements  furnished  pursuant to Sections  8.1.  and 8.2.,  the  Borrower  shall
        deliver reports, in form and detail satisfactory to the Agent, setting forth (a) a
        statement of Funds From  Operations  for the fiscal  quarter then ending;  (b) all
        Capital  Expenditures made during the fiscal quarter then ended; (c) a description
        of all Properties acquired during such fiscal quarter, including the net operating
        income of each such Property, acquisition costs and related mortgage debt and such
        other information as the Agent may request; and (d) all Unencumbered Assets at the
        end of such fiscal quarter.
        <BR><BR></FONT></P></TD></TR>

<!--8.4 Other Information-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 8.4.&nbsp;&nbsp;&nbsp;&nbsp;Other Information.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Management Letter Comments</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Promptly upon receipt thereof,  copies of all management
        letter  comments,  if any,  submitted to the Borrower or its Board of Directors by
        its independent public accountants;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Securities Filings</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Promptly  upon,  and in any event within 10 Business Days
        of, the filing  thereof,  copies of all  registration  statements  (excluding  the
        exhibits thereto (unless
        </FONT></P></TD></TR>


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        <TD WIDTH=95%></TD></TR>

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<!--8.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        requested  by the  Agent)  and any  registration  statements  on  Form  S-8 or its
        equivalent),  reports on Forms 10-K, 10-Q and 8-K (or their  equivalents)  and all
        other periodic reports which the Borrower,  any Subsidiary or any other Loan Party
        shall  file with the  Securities  and  Exchange  Commission  (or any  Governmental
        Authority substituted therefor) or any national securities exchange;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Shareholder Information; Press Releases</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Promptly upon the mailing thereof to the shareholders of
        the Borrower  generally,  copies of all  financial  statements,  reports and proxy
        statements  so mailed and promptly upon the issuance  thereof  copies of all press
        releases issued by the Borrower, any Subsidiary or any other Loan Party;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>ERISA</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If  and when any member of the ERISA Group (i) gives or is
        required  to give  notice  to the  PBGC of any  &#147;reportable  event&#148;  (as
        defined in Section 4043 of ERISA) with respect to any Plan which might  constitute
        grounds for a termination of such Plan under Title IV of ERISA,  or knows that the
        plan administrator of any Plan has given or is required to give notice of any such
        reportable  event, a copy of the notice of such reportable event given or required
        to be given to the PBGC;  (ii) receives  notice of complete or partial  withdrawal
        liability  under  Title IV of ERISA or notice  that any  Multiemployer  Plan is in
        reorganization,  is insolvent or has been terminated, a copy of such notice; (iii)
        receives  notice from the PBGC under Title IV of ERISA of an intent to  terminate,
        impose  liability (other than for premiums under Section 4007 of ERISA) in respect
        of, or appoint a trustee  to  administer  any Plan,  a copy of such  notice;  (iv)
        applies  for a waiver of the minimum  funding  standard  under  Section 412 of the
        Internal Revenue Code, a copy of such  application;  (v) gives notice of intent to
        terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other
        information  filed with the PBGC;  (vi) gives notice of  withdrawal  from any Plan
        pursuant to Section 4063 of ERISA,  a copy of such notice;  or (vii) fails to make
        any payment or contribution to any Plan or Multiemployer Plan or in respect of any
        Benefit  Arrangement  or makes any  amendment  to any Plan or Benefit  Arrangement
        which has resulted or could result in the imposition of a Lien or the posting of a
        bond or other  security,  a  certificate  of the chief  financial  officer  of the
        Borrower setting forth details as to such occurrence and the action, if any, which
        the  Borrower or  applicable  member of the ERISA Group is required or proposes to
        take;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;To  the extent the  Borrower,  any other Loan Party or any
        other  Subsidiary is aware of the same,  prompt notice of the  commencement of any
        proceeding or investigation by or before any Governmental Authority and any action
        or proceeding in any court or other tribunal or before any  arbitrator  against or
        in any other way relating adversely to, or adversely affecting,  the Borrower, any
        other Loan Party or any other  Subsidiary or any of their  respective  properties,
        assets or businesses which could reasonably be expected to have a Material Adverse
        Effect,  and prompt  notice of the receipt of notice that any United States income
        tax  returns of the  Borrower,  any other Loan Party or any other  Subsidiary  are
        being audited;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modification of Organizational Documents</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;A  copy of any material  amendment to the  certificate  or
        articles  of  incorporation,   bylaws,  partnership  agreement  or  other  similar
        organizational  documents of the Borrower or any other Loan Party  promptly  upon,
        and in any event within 15 Business Days of, the effectiveness thereof;
        </FONT></P></TD></TR>


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<!--8.4 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change of Management or Financial Condition</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Prompt  notice of any material  change in the  executive
        management of the Borrower,  any Subsidiary or any other Loan Party and any change
        in the business, assets, liabilities,  condition (financial or otherwise), results
        of operations or business  prospects of the Borrower,  any Subsidiary or any other
        Loan  Party  which has had or could  reasonably  be  expected  to have a  Material
        Adverse Effect;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Notice  of the  occurrence  of any  Default  or Event of
        Default promptly upon a Responsible Officer of the Borrower,  any other Loan Party
        or any other Subsidiary obtaining knowledge thereof;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Judgments</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Prompt notice of any order, judgment or decree in excess
        of  $5,000,000  having been entered  against the Borrower,  any  Subsidiary or any
        other Loan Party of any of their respective properties or assets;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice of Violations of Law</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Prompt  notice if the  Borrower,  any  Subsidiary or any
        other Loan Party shall receive any notification  from any  Governmental  Authority
        alleging a violation  of any  Applicable  Law, or any inquiry  with respect to any
        matters,  in either  case which  could  reasonably  be expected to have a Material
        Adverse Effect;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Material Asset Sales</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Prompt notice of the sale, transfer or other disposition
        of any assets having a book value or fair market value in excess of $50,000,000 in
        the  aggregate  of the  Borrower,  any  Subsidiary  or any other Loan Party to any
        Person other than the Borrower, any Subsidiary or any other Loan Party;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Ratings Change</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Notice  of a change  in any  Credit  Rating  within  two
        Business Days of the occurrence of such change; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other Information</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;From time to time and promptly upon each  request,  such
        data, certificates, reports, statements, opinions of counsel, documents or further
        information  regarding the business,  assets,  liabilities,  financial  condition,
        results  of  operations  or  business  prospects  of  the  Borrower  or any of its
        Subsidiaries as the Agent or any Lender may reasonably request.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE IX-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE IX. &nbsp;&nbsp;NEGATIVE COVENANTS</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so  long as this
        Agreement is in effect,  unless the Requisite Lenders (or, if required pursuant to
        Section 12.6., all of the Lenders) shall otherwise consent in the manner set forth
        in Section 12.6., the Borrower shall comply with the following covenants:
       <BR><BR></FONT></P></TD></TR>

<!--9.1 Financial Covenants-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.1.&nbsp;&nbsp;&nbsp;&nbsp;Financial Covenants.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        The Borrower shall not permit:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maximum Leverage Ratio</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The ratio of (i) Total Liabilities to (ii) Total Assets,
        to exceed 0.50 to 1.00 at any time.
        </FONT></P></TD></TR>


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        <TD WIDTH=95%></TD></TR>

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<!--9.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Minimum Interest Ratio</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The ratio of (i) EBITDA  for the  fiscal  quarter of the
        Borrower most recently ended to (ii) Interest Expense for such period,  to be less
        than 2.0 to 1.0 at any time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Minimum Fixed Charge Ratio</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The ratio of (i) EBITDA  for the  fiscal  quarter of the
        Borrower  most recently  ended to (ii) Fixed  Charges for such period,  to be less
        than 1.75 to 1.0 at any time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Unencumbered Asset Ratio</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  ratio  of (i)  Unencumbered  Asset  Value  to  (ii)
        Unsecured Debt of the Borrower and its  Subsidiaries,  to be less than 1.75 to 1.0
        at any time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Unencumbered Interest Ratio</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  ratio of (i) the sum of (A)  Gross  Lease  Revenues
        attributable to Properties that are Unencumbered  Assets for the fiscal quarter of
        the Borrower most recently ended <U>minus</U> (B) an imputed management fee in the
        amount of 2.0% of the aggregate  rents received by the Borrower and the Guarantors
        with  respect to such  Unencumbered  Assets  during  such period  <U>plus</U>  (C)
        Eligible  Mortgage  Income for such period to (ii) Interest  Expense in respect of
        Unsecured Debt of the Borrower and its  Subsidiaries  for such period,  to be less
        than 2.0 to 1.0 at any time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Minimum Tangible Net Worth</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Tangible  Net  Worth  at any  time to be less  than  (i)
        $490,000,000 plus (ii) 85.0% of the Net Proceeds of all Equity Issuances  effected
        by the  Borrower  or any  Subsidiary  after  December  31, 2002 (other than Equity
        Issuances to the Borrower or any Subsidiary).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Maximum Secured Debt Ratio</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The ratio of (i) Secured  Debt of the  Borrower  and its
        Subsidiaries to (ii) Total Assets, to exceed 0.30 to 1.0 at any time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Revenues from Ground Leases</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  ratio  (expressed  as  a  percentage)  of  (i)  the
        aggregate  income  of the  Borrower  and  its  Subsidiaries  from  ground  leases,
        including  without  limitation,  all Ground Leases,  for any fiscal quarter ending
        during the term of this  Agreement  to (ii) Gross Lease  Revenues  for such fiscal
        quarter, to exceed 5.0%.
        <BR><BR></FONT></P></TD></TR>

<!--9.2 Restricted Payments-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.2.&nbsp;&nbsp;&nbsp;&nbsp;Restricted Payments.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower and the
        Guarantors will not, and will not permit any of their respective  Subsidiaries to,
        declare or make any Restricted Payments; <U>provided</U>, <U>however</U>, that (a)
        Subsidiaries of the Borrower may make Restricted Payments to the Borrower or other
        Subsidiaries of the Borrower;  (b) the Borrower and the UPREIT may declare or make
        cash  distributions to their shareholders and partners,  respectively,  during any
        period of four  consecutive  fiscal quarters in an aggregate  amount not to exceed
        100% of Funds Available for  Distribution  for such four quarter  period;  and (c)
        subject to the following  sentence,  if a Default or Event of Default exists,  the
        Borrower  and the UPREIT  may only  declare  or make cash  distributions  to their
        shareholders  and partners,  respectively,  during any fiscal year in an aggregate
        amount  not to exceed  the  lesser of (i) the  amount  otherwise  permitted  to be
        declared or made under the immediately  preceding  clause (b) and (ii) the minimum
        amount  necessary  for the Borrower to remain in  compliance  with  Section  7.12.
        Notwithstanding  the  foregoing,  if a Default  or Event of Default  specified  in
        Section 10.1.(a), Section 10.1.(b), Section 10.1.(f) or
        </FONT></P></TD></TR>

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<!--9.2 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Section  10.1.(g)  shall exist,  or if as a result of the  occurrence of any other
        Event of Default any of the Obligations have been accelerated  pursuant to Section
        10.2.(a),  the  Borrower and the  Guarantors  will not, and will not permit any of
        their  respective  Subsidiaries  to,  declare  or  make  any  Restricted  Payments
        whatsoever.
        <BR><BR></FONT></P></TD></TR>

<!--9.3 Debt-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.3.&nbsp;&nbsp;&nbsp;&nbsp;Debt.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        not,  and shall not permit  any  Subsidiary  or any other  Loan  Party to,  incur,
        assume,  or otherwise  become obligated in respect of any Debt after the Agreement
        Date if immediately  prior to the assumption,  incurring or becoming  obligated in
        respect  thereof,  or immediately  thereafter and after giving effect  thereto,  a
        Default  or  Event of  Default  is or would  be in  existence,  including  without
        limitation, a Default or Event of Default resulting from a violation of any of the
        covenants contained in Section 9.1.
        <BR><BR></FONT></P></TD></TR>

<!--9.4 Certain Permitted Investments-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.4.&nbsp;&nbsp;&nbsp;&nbsp;Certain Permitted Investments.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  and the
        Guarantors shall not, and shall not permit any of their  Subsidiaries to, make any
        Investment,  or otherwise own the following items, which would cause the aggregate
        value of such holdings of the Borrower,  the Guarantors and such  Subsidiaries  to
        exceed the applicable limits set forth below:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments  in Unconsolidated Affiliates such
        that the aggregate book value of such  Investments  determined in accordance  with
        GAAP  exceeds  20.0% of Total  Assets at any time (for  purposes of  clarity,  the
        parties  agree that loans by the  Borrower  or any  Subsidiary  to CNL  Commercial
        Finance,  Inc.  are  Investments  subject  to this  subsection  (a) so long as CNL
        Commercial Finance, Inc. is an Unconsolidated Affiliate);
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage    Receivables,   including   without
        limitation, Eligible Mortgage Notes Receivable, such that the aggregate book value
        of all such Mortgage Receivables exceeds 10.0% of Total Assets;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;real property under construction such that the
        aggregate  Construction  Budget for all such real property  exceeds 15.0% of Total
        Assets;  <U>provided</U>,  <U>however</U>,  the Borrower and Guarantors shall not,
        and shall not  permit  any of their  Subsidiaries  to,  make  investments  in real
        property under construction otherwise permitted hereunder unless at least 75.0% of
        the total square footage under construction is the subject of executed leases; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments   in  loans   and   interests   in
        securitized pools of promissory notes,  mortgage loans,  chattel paper,  leases or
        similar financial assets originated by CNL Commercial Finance, Inc., such that the
        aggregate  value  (determined  on the basis of lower of cost or fair value) of all
        such  Investments  exceeds the greater of (i) the lesser of (A)  60,000,000 or (B)
        7.5% of Total Assets or (ii) 10.0% of Tangible Net Worth.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        In addition to the foregoing limitations,  the aggregate value of all of the items
        subject to the  limitations  in the  preceding  clauses (a), (b) and (d) shall not
        exceed 25.0% of Total Assets at any time.
        </FONT></P></TD></TR>


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<!--Section 9.5  Conduct of Business-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.5.&nbsp;&nbsp;&nbsp;&nbsp;Conduct of Business.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        not, and shall not permit any Subsidiary or any other Loan Party to, engage in any
        type of business except as described in Section 6.1.(t).
        <BR><BR></FONT></P></TD></TR>

<!--Section 9.6 Liens; Negative Pledges; Other Matters-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.6.&nbsp;&nbsp;&nbsp;&nbsp;Liens; Negative Pledges; Other Matters.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall not, and shall not permit
        any  Subsidiary or other Loan Party to, create,  assume,  or incur any Lien (other
        than Permitted Liens) upon any of its properties, assets, income or profits of any
        character  whether now owned or  hereafter  acquired if  immediately  prior to the
        creation,  assumption  or incurring of such Lien,  or  immediately  thereafter,  a
        Default  or  Event of  Default  is or would  be in  existence,  including  without
        limitation, a Default or Event of Default resulting from a violation of any of the
        covenants contained in Section 9.1.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall not, and shall not permit
        any  Subsidiary  or other Loan Party to,  create or  otherwise  cause or suffer to
        exist or become effective any consensual encumbrance or restriction of any kind on
        the ability of any  Subsidiary  (other than an  Excluded  Subsidiary)  to: (i) pay
        dividends or make any other distribution on any of such Subsidiary&#146;s  capital
        stock or other equity interests owned by the Borrower or any Subsidiary;  (ii) pay
        any Debt owed to the Borrower or any  Subsidiary;  (iii) make loans or advances to
        the Borrower or any Subsidiary;  or (iv) transfer any of its property or assets to
        the Borrower or any Subsidiary.
        <BR><BR></FONT></P></TD></TR>

<!--Section 9.7 Merger, Consolidation, Sales of Assets and Other Arrangements-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.7.&nbsp;&nbsp;&nbsp;&nbsp;Merger, Consolidation, Sales of Assets and Other Arrangements.
        </B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Borrower   shall
        not,  and shall not permit any  Subsidiary  or other Loan Party to: (i) enter into
        any transaction of merger or  consolidation;  (ii) liquidate,  wind up or dissolve
        itself (or suffer any liquidation or dissolution);  or (iii) convey,  sell, lease,
        sublease,  transfer or  otherwise  dispose of, in one  transaction  or a series of
        transactions,  all or any substantial part of its business or assets,  whether now
        owned or hereafter acquired; <U>provided</U>, <U>however</U>, that:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any   of   the   actions   described   in  the
        immediately  preceding  clauses (i) through (iii) may be taken with respect to any
        Subsidiary  or any  other  Loan  Party  (other  than  the  Borrower)  so  long  as
        immediately  prior to the taking of such action,  and  immediately  thereafter and
        after  giving  effect  thereto,  no  Default or Event of Default is or would be in
        existence;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the  Borrower,  each Subsidiary and each other
        Loan Party may sell, transfer or dispose of assets among themselves;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the  Borrower,  its Subsidiaries and the other
        Loan  Parties  may  lease  and  sublease  their  respective  assets,  as lessor or
        sublessor (as the case may be), in the ordinary course of their business; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a Person may merge with and into the Borrower,
        any Subsidiary or any Loan Party so long as (i) the Borrower,  such  Subsidiary or
        such Loan Party, as applicable,  is the survivor of such merger,  (ii) immediately
        prior to such merger, and immediately  thereafter and after giving effect thereto,
        no Default or Event of Default is or would be in existence, and
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<!--9.7 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        (iii) the Borrower shall have given the Agent and the Lenders at least 10 Business
        Days&#146;  prior  written  notice of such merger  (except  that such prior notice
        shall not be required in the case of the merger of a Subsidiary  with and into the
        Borrower).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        If,  as a  result  of  the  consummation  of  any  transaction  described  in  the
        immediately  preceding  clause (a) or (b), a Person would become a Subsidiary that
        has assets  having a book value or fair market value in excess of  $50,000,000  in
        the  aggregate  and that is not an Excluded  Subsidiary,  the  Borrower  shall not
        permit the consummation of such transaction  unless the items described in Section
        7.11.(a)  are  delivered  to the  Agent  at the time of the  consummation  of such
        transaction.
        <BR><BR></FONT></P></TD></TR>


<!--Section 9.8 Fiscal Year-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.8.&nbsp;&nbsp;&nbsp;&nbsp;Fiscal Year.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        not change its fiscal year from that in effect as of the Agreement Date.
        <BR><BR></FONT></P></TD></TR>

<!--Section 9.9 Modifications of Organizational Documents-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.9.&nbsp;&nbsp;&nbsp;&nbsp;Modifications of Organizational Documents.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        not,  and shall not permit any other Loan  Party or other  Subsidiary  to,  amend,
        supplement,   restate  or  otherwise   modify  its  articles  or   certificate  of
        incorporation,  by-laws,  operating agreement,  declaration of trust,  partnership
        agreement  or  other  applicable   organizational   document  if  such  amendment,
        supplement, restatement or other modification could reasonably be expected to have
        a Material Adverse Effect.
        <BR><BR></FONT></P></TD></TR>

<!--Section 9.10 Transactions with Affiliates-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.10.&nbsp;&nbsp;&nbsp;&nbsp;Transactions with Affiliates.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Borrower   shall
        not,  and shall not  permit  any of its  Subsidiaries  or any other Loan Party to,
        permit to exist or enter into,  any  transaction  (including  the purchase,  sale,
        lease or  exchange of any  property  or the  rendering  of any  service)  with any
        Affiliate,  except (a)  transactions in the ordinary course of and pursuant to the
        reasonable requirements of the business of the Borrower or any of its Subsidiaries
        and upon fair and reasonable  terms which are no less favorable to the Borrower or
        such  Subsidiary  than  would  be  obtained  in  a  comparable  arm&#146;s  length
        transaction  with a Person that is not an  Affiliate  or (b) which are approved by
        the independent directors of the Borrower.
        <BR><BR></FONT></P></TD></TR>

<!--Section 9.11 ERISA Exemptions-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.11.&nbsp;&nbsp;&nbsp;&nbsp;ERISA Exemptions.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall
        not, and shall not permit any Subsidiary  to, permit any of its respective  assets
        to become or be deemed to be &#147;plan assets&#148;  within the meaning of ERISA,
        the Internal Revenue Code and the respective regulations promulgated thereunder.
        <BR><BR></FONT></P></TD></TR>

<!--Section 9.12 Ownership of CNLRS-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 9.12.&nbsp;&nbsp;&nbsp;&nbsp;Ownership of CNLRS.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall not
        permit (a) its percentage  ownership of all of the Equity  Interests of Commercial
        Net Lease Realty Services, Inc.  (&#147;CNLRS&#148;)  entitling holders thereof to
        the payment of dividends or other distributions from revenues of CNLRS to decrease
        after the Agreement  Date or (b) ordinary  voting power to elect a majority of the
        board of directors of
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

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<!--9.12 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        CNLRS (without  regard to the occurrence of any  contingency) to be directly owned
        or controlled by any Persons other than senior officers of the Borrower.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE X-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE X. &nbsp;&nbsp;DEFAULT</B>
        <BR><BR></FONT></P></TD></TR>

<!--10.1 Events of Default-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.1.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each  of the following
        shall  constitute  an Event of  Default,  whatever  the  reason for such event and
        whether it shall be  voluntary  or  involuntary  or be  effected by  operation  of
        Applicable Law or pursuant to any judgment or order of any Governmental Authority:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default in Payment of Principal</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall fail to pay when due  (whether  upon
        demand, at maturity,  by reason of acceleration or otherwise) the principal of any
        of the Loans, or any Reimbursement Obligation.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default in Payment of Interest and Other Obligations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower  shall fail to pay when due any interest on
        any of the Loans or any of the other  payment  Obligations  owing by the  Borrower
        under this  Agreement  or any other Loan  Document,  or any other Loan Party shall
        fail to pay when due any payment  Obligation  owing by such other Loan Party under
        any Loan Document to which it is a party,  and such failure  shall  continue for a
        period of 5 Business Days.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default in Performance</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;(i) The  Borrower  shall fail to perform or observe  any
        term, covenant,  condition or agreement contained in Section 8.4.(h) or in Article
        IX. or (ii) the  Borrower or any other Loan Party shall fail to perform or observe
        any term,  covenant,  condition  or agreement  contained in this  Agreement or any
        other Loan  Document to which it is a party and not  otherwise  mentioned  in this
        Section and such failure shall  continue for a period of 30 days after the earlier
        of (x) the date upon  which a  Responsible  Officer of the  Borrower  or such Loan
        Party  obtains  knowledge  of such failure or (y) the date upon which the Borrower
        has received written notice of such failure from the Agent.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Material Misrepresentations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Any written statement, representation or warranty made or
        deemed  made by or on behalf of the  Borrower  or any other Loan Party  under this
        Agreement or under any other Loan Document, or any amendment hereto or thereto, or
        in any other writing or statement at any time  furnished or made or deemed made by
        or on behalf of the  Borrower  or any other Loan Party to the Agent or any Lender,
        shall at any time  prove to have been  incorrect  or  misleading,  in light of the
        circumstances in which made or deemed made, in any material respect when furnished
        or made or deemed made.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Debt Cross-Default</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;

        <BR><BR></FONT></P></TD></TR>
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower,  any  Subsidiary or
        any other Loan Party shall fail to pay when due and payable,  after the expiration
        of any  applicable  notice and cure period,  the principal of, or interest on, any
        Debt (other than the Loans) having an aggregate  outstanding  principal  amount of
        $10,000,000 or more (&#147;Material Debt&#148;); or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)  the maturity of any  Material  Debt shall
        have been accelerated in accordance with the provisions of any indenture, contract
        or instrument evidencing,
        </FONT></P></TD></TR>


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        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<!--Sectin 10.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        providing  for the creation of or otherwise  concerning  such Material Debt or (y)
        any Material Debt shall have been required to be prepaid or  repurchased  prior to
        the stated maturity thereof; or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any  other  event shall have  occurred  and be
        continuing  which,  with or without the passage of time, the giving of notice,  or
        both,  would permit any holder or holders of Material  Debt,  any trustee or agent
        acting on behalf of such holder or holders or any other Person,  to accelerate the
        maturity of any such Material Debt or require any such Material Debt to be prepaid
        or repurchased prior to its stated maturity; or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;there occurs under any Swap Agreement an Early
        Termination Date (as defined in such Swap Agreement)  resulting from (A) any event
        of default under such Swap  Agreement as to which any Loan Party is the Defaulting
        Party (as  defined in such Swap  Agreement)  or (B) any  Termination  Event (as so
        defined) under such Swap Agreement as to which any Loan Party is an Affected Party
        (as so defined) and, in either event, the Swap Termination  Value owed by any Loan
        Party as a result thereof is $10,000,000 or more.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voluntary Bankruptcy Proceeding</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower,  any  other  Loan  Party or any  Subsidiary
        shall:  (i)  commence a  voluntary  case  under the  Bankruptcy  Code of 1978,  as
        amended,  or other federal  bankruptcy laws (as now or hereafter in effect);  (ii)
        file a petition seeking to take advantage of any other  Applicable Laws,  domestic
        or foreign,  relating to bankruptcy,  insolvency,  reorganization,  winding-up, or
        composition  or  adjustment  of debts;  (iii)  consent to, or fail to contest in a
        timely and  appropriate  manner,  any petition  filed against it in an involuntary
        case  under  such  bankruptcy  laws or other  Applicable  Laws or  consent  to any
        proceeding or action described in the immediately following subsection; (iv) apply
        for or consent  to, or fail to contest in a timely  and  appropriate  manner,  the
        appointment of, or the taking of possession by, a receiver, custodian, trustee, or
        liquidator  of  itself  or of a  substantial  part of its  property,  domestic  or
        foreign;  (v) admit in writing its  inability to pay its debts as they become due;
        (vi)  make a  general  assignment  for the  benefit  of  creditors;  (vii)  make a
        conveyance fraudulent as to creditors under any Applicable Law; or (viii) take any
        corporate or partnership action for the purpose of effecting any of the foregoing.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Involuntary Bankruptcy Proceeding</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;A case or other proceeding shall be commenced against the
        Borrower,  any  other  Loan  Party or any  Subsidiary  in any  court of  competent
        jurisdiction seeking: (i) relief under the Bankruptcy Code of 1978, as amended, or
        other federal  bankruptcy  laws (as now or hereafter in effect) or under any other
        Applicable  Laws,  domestic  or  foreign,  relating  to  bankruptcy,   insolvency,
        reorganization,  winding-up,  or composition  or adjustment of debts;  or (ii) the
        appointment  of a trustee,  receiver,  custodian,  liquidator  or the like of such
        Person, or of all or any substantial part of the assets,  domestic or foreign,  of
        such Person,  and such case or proceeding  shall continue  undismissed or unstayed
        for a period of 60  consecutive  calendar days, or an order granting the remedy or
        other  relief  requested in such case or  proceeding  against the  Borrower,  such
        Subsidiary or such other Loan Party  (including,  but not limited to, an order for
        relief under such Bankruptcy Code or such other federal  bankruptcy laws) shall be
        entered.
        </FONT></P></TD></TR>

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<!--10.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Litigation; Enforceability</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  or any other  Loan Party  shall  disavow,
        revoke or terminate (or attempt to  terminate)  any Loan Document to which it is a
        party or shall otherwise challenge or contest in any action, suit or proceeding in
        any court or before any Governmental  Authority the validity or  enforceability of
        this Agreement,  any Note or any other Loan Document or this Agreement,  any Note,
        the Guaranty or any other Loan Document shall cease to be in full force and effect
        (except as a result of the express terms thereof).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Judgment</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;A  judgment  or order for the  payment  of money or for an
        injunction shall be entered against the Borrower, any Subsidiary or any other Loan
        Party,  by any  court  or other  tribunal  and (i) such  judgment  or order  shall
        continue for a period of 60 days without being paid,  stayed or dismissed  through
        appropriate  appellate proceedings and (ii) either (A) the amount of such judgment
        or  order  for  which  insurance  has not  been  acknowledged  in  writing  by the
        applicable  insurance  carrier  (or the amount as to which the  insurer has denied
        liability)  exceeds,  individually  or  together  with all other such  outstanding
        judgments or orders entered against the Borrower, such Subsidiaries and such other
        Loan  Parties,  $10,000,000  or  (B)  in  the  case  of  an  injunction  or  other
        non-monetary  judgment,  such  judgment  could  reasonably  be  expected to have a
        Material Adverse Effect.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Attachment</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;A  warrant,  writ of  attachment,  execution  or similar
        process shall be issued  against any property of the Borrower,  any  Subsidiary or
        any other Loan Party which exceeds,  individually  or together with all other such
        warrants, writs, executions and processes, $10,000,000 in amount and such warrant,
        writ, execution or process shall not be discharged,  vacated, stayed or bonded for
        a period of 60 days; provided, however, that if a bond has been issued in favor of
        the claimant or other Person obtaining such warrant,  writ,  execution or process,
        the issuer of such bond shall execute a waiver or subordination  agreement in form
        and substance  satisfactory to the Agent pursuant to which the issuer of such bond
        subordinates  its  right of  reimbursement,  contribution  or  subrogation  to the
        Obligations and waives or  subordinates  any Lien it may have on the assets of any
        Loan Party.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>ERISA</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Any  member of the ERISA  Group shall fail to pay when due
        an amount or  amounts  aggregating  in excess of  $10,000,000  which it shall have
        become  liable to pay under Title IV of ERISA;  or notice of intent to terminate a
        Material  Plan shall be filed  under  Title IV of ERISA by any member of the ERISA
        Group,  any plan  administrator  or any combination of the foregoing;  or the PBGC
        shall  institute  proceedings  under  Title IV of ERISA to  terminate,  to  impose
        liability  (other than for premiums under Section 4007 of ERISA) in respect of, or
        to cause a  trustee  to be  appointed  to  administer,  any  Material  Plan;  or a
        condition  shall  exist by reason of which the PBGC would be  entitled to obtain a
        decree  adjudicating  that any Material  Plan must be  terminated;  or there shall
        occur a complete or partial  withdrawal from, or a default,  within the meaning of
        Section  4219(c)(5)  of ERISA,  with respect to, one or more  Multiemployer  Plans
        which  could  cause  one or more  members  of the  ERISA  Group to incur a current
        payment obligation in excess of $10,000,000.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loan Documents</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;An Event of Default  (as  defined  therein)  shall occur
        under any of the other Loan Documents.
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--10.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change of Control</U>.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any      &#147;person&#148;     or
        &#147;group&#148;  (as such  terms  are used in  Sections  13(d)  and 14(d) of the
        Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), is or
        becomes  the  &#147;beneficial  owner&#148;  (as  defined in Rules 13d-3 and 13d-5
        under  the   Exchange   Act,   except  that  a  Person  will  be  deemed  to  have
        &#147;beneficial ownership&#148;  of all securities that such Person has the right
        to  acquire,  whether  such  right is  exercisable  immediately  or only after the
        passage of time),  directly or indirectly,  of more than 35.0% of the total voting
        power of the then outstanding voting stock of the Borrower; or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During    any    period    of   12
        consecutive  months  ending  after  the  Agreement  Date,  individuals  who at the
        beginning of any such 12-month  period  constituted  the Board of Directors of the
        Borrower  (together  with any new directors  whose election by such Board or whose
        nomination for election by the shareholders of the Borrower was approved by a vote
        of a majority of the directors  then still in office who were either  directors at
        the  beginning  of such period or whose  election or  nomination  for election was
        previously so approved) cease for any reason to constitute a majority of the Board
        of Directors of the Borrower then in office.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<!--Section 10.2 Remedies Upon Event of Default-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.2.&nbsp;&nbsp;&nbsp;&nbsp;Remedies Upon Event of Default.</B>
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of
        an Event of Default the following provisions shall apply:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceleration; Termination of Facilities</U>.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Automatic</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon  the  occurrence of an Event of Default  specified in
        Sections  10.1.(f) or 10.1.(g),  (A)(i) the principal of, and all accrued interest
        on, the Loans and the Notes at the time  outstanding,  (ii) an amount equal to the
        Stated  Amount  of  all  Letters  of  Credit  outstanding  as of the  date  of the
        occurrence of such Event of Default and (iii) all of the other  Obligations of the
        Borrower,  including,  but not limited to, the other  amounts owed to the Lenders,
        the Swingline  Lender and the Agent under this Agreement,  the Notes or any of the
        other Loan Documents shall become immediately and automatically due and payable by
        the Borrower without  presentment,  demand,  protest, or other notice of any kind,
        all of which are expressly  waived by the Borrower and (B) all of the Commitments,
        the obligation of the Lenders to make Revolving Loans,  the Swingline  Commitment,
        the obligation of the Swingline Lender to make Swingline Loans, and the obligation
        of the Agent to issue  Letters  of Credit  hereunder,  shall all  immediately  and
        automatically terminate.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Optional</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If any other Event of Default shall have occurred and be
        continuing,  the Agent shall,  at the  direction  of the  Requisite  Lenders:  (A)
        declare (1) the principal of, and accrued  interest on, the Loans and the Notes at
        the time  outstanding,  (2) an amount equal to the Stated Amount of all Letters of
        Credit outstanding as of the date of the occurrence of such other Event of Default
        and (3) all of the other  Obligations,  including,  but not  limited to, the other
        amounts owed to the Lenders and the Agent under this  Agreement,  the Notes or any
        of the other Loan  Documents to be forthwith  due and payable,  whereupon the same
        shall immediately become due and payable without
        </FONT></P></TD></TR>

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</TABLE>


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        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        presentment,  demand,  protest  or other  notice  of any  kind,  all of which  are
        expressly  waived  by the  Borrower  and (B)  terminate  the  Commitments  and the
        obligation of the Lenders to make Loans  hereunder and the obligation of the Agent
        to issue Letters of Credit hereunder.  Further,  if the Agent has exercised any of
        the rights provided under the preceding sentence,  the Swingline Lender shall: (x)
        declare the  principal of, and accrued  interest on, the  Swingline  Loans and the
        Swingline Note at the time outstanding,  and all of the other Obligations owing to
        the Swingline  Lender,  to be forthwith due and payable,  whereupon the same shall
        immediately become due and payable without presentment,  demand,  protest or other
        notice of any kind,  all of which are  expressly  waived by the  Borrower  and (y)
        terminate the Swingline  Commitment and the obligation of the Swingline  Lender to
        make Swingline Loans.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loan Documents</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Requisite  Lenders may direct the Agent to, and the
        Agent if so directed  shall,  exercise any and all of its rights under any and all
        of the other Loan Documents.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Applicable Law</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Requisite  Lenders  may  direct the Agent to, and the
        Agent if so directed  shall,  exercise  all other  rights and remedies it may have
        under any Applicable Law.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Appointment of Receiver</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted by Applicable Law, the Agent and
        the Lenders shall be entitled to the  appointment of a receiver for the assets and
        properties  of the  Borrower  and its  Subsidiaries,  without  notice  of any kind
        whatsoever and without regard to the adequacy of any security for the  Obligations
        or the solvency of any party bound for its payment,  to take  possession of all or
        any portion of the business operations of the Borrower and its Subsidiaries and to
        exercise such power as the court shall confer upon such receiver.
        <BR><BR></FONT></P></TD></TR>

<!--Section 10.3 Remedies Upon Default-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.3.&nbsp;&nbsp;&nbsp;&nbsp;Remedies Upon Default.</B>
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of
        a Default  specified  in Sections  10.1.(f) or  10.1.(g),  the  Commitments  shall
        immediately and automatically terminate.
        <BR><BR></FONT></P></TD></TR>

<!--Section 10.4 Allocation of Proceeds-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.4.&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Proceeds.</B>
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  an   Event   of
        Default  shall  have  occurred  and  be  continuing  and  maturity  of  any of the
        Obligations has been accelerated,  all payments received by the Agent under any of
        the Loan Documents,  in respect of any principal of or interest on the Obligations
        or any other amounts  payable by the Borrower  hereunder or  thereunder,  shall be
        applied in the following order and priority:
        <BR><BR></FONT></P></TD></TR>
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=90%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;amounts due to the Agent in respect of fees and expenses
        due under Section 12.2.;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;amounts due to the Lenders in respect of fees and expenses
        due under Section 12.2.;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
        &nbsp;&nbsp;&nbsp;&nbsp;payments of interest on Swingline Loans;
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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</TABLE>


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        <TD WIDTH=90%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 10.4 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
        &nbsp;&nbsp;&nbsp;&nbsp;payments of interest on all other Loans and Reimbursement
        Obligations, to be applied for the ratable benefit of the Lenders;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
        &nbsp;&nbsp;&nbsp;&nbsp;payments of principal of Swingline Loans;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
        &nbsp;&nbsp;&nbsp;&nbsp;payments of principal of all other Loans and Reimbursement
        Obligations, to be applied for the ratable benefit of the Lenders;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
        &nbsp;&nbsp;&nbsp;&nbsp;amounts  to be deposited  into the  Collateral  Account in
        respect of Letters of Credit;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
        &nbsp;&nbsp;&nbsp;&nbsp;amounts due the Agent and the Lenders pursuant to Sections
        11.7. and 12.9.;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;payments  of  all  other  amounts  due  and  owing  by the
        Borrower and the other Loan Parties under any of the Loan Documents, if any, to be
        applied for the ratable benefit of the Lenders; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
        &nbsp;&nbsp;&nbsp;&nbsp;any  amount remaining after application as provided above,
        shall be paid to the Borrower or whomever else may be legally entitled thereto.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<!--Section 10.5 Collateral Account-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.5.&nbsp;&nbsp;&nbsp;&nbsp;Collateral Account.</B>
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As  collateral security for the prompt payment
        in full when due of all Letter of Credit  Liabilities  and the other  Obligations,
        the Borrower hereby pledges and grants to the Agent,  for the benefit of the Agent
        and the Lenders as provided herein, a security interest in all of its right, title
        and interest in and to the  Collateral  Account and the balances from time to time
        in the Collateral  Account  (including the investments and  reinvestments  therein
        provided for below).  The  balances  from time to time in the  Collateral  Account
        shall not constitute  payment of any Letter of Credit Liabilities until applied by
        the  Agent  as  provided  herein.  Anything  in  this  Agreement  to the  contrary
        notwithstanding,  funds  held  in the  Collateral  Account  shall  be  subject  to
        withdrawal only as provided in this Section and in Section 2.13.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts  on deposit in the Collateral  Account
        shall be invested  and  reinvested  by the Agent in such Cash  Equivalents  as the
        Agent  shall  determine  in  its  sole   discretion.   All  such  investments  and
        reinvestments  shall  be held in the name of and be under  the sole  dominion  and
        control of the Agent for the  benefit of the  Lenders.  The Agent  shall  exercise
        reasonable  care  in the  custody  and  preservation  of  any  funds  held  in the
        Collateral  Account and shall be deemed to have  exercised such care if such funds
        are accorded  treatment  substantially  equivalent to that which the Agent accords
        other funds deposited with the Agent, it being understood that the Agent shall not
        have any  responsibility for taking any necessary steps to preserve rights against
        any parties with respect to any funds held in the Collateral Account.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default shall have occurred and
        be continuing,  the Requisite  Lenders may, in their  discretion,  at any time and
        from  time to time,  instruct  the Agent to  liquidate  any such  investments  and
        reinvestments and credit the proceeds thereof to the
        </FONT></P></TD></TR>


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</TABLE>


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        <TD WIDTH=95%></TD></TR>

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<!--Section 10.5 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Collateral  Account and apply or cause to be applied  such  proceeds and any other
        balances in the  Collateral  Account to the payment of any of the Letter of Credit
        Liabilities due and payable.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  (i) no  Default  or Event of  Default  has
        occurred and is continuing and (ii) all of the Letter of Credit  Liabilities  have
        been paid in full,  the Agent  shall,  from time to time,  at the  request  of the
        Borrower,  deliver to the  Borrower,  against  receipt but  without any  recourse,
        warranty or  representation  whatsoever,  such of the  balances in the  Collateral
        Account as exceed the  aggregate  amount of Letter of Credit  Liabilities  at such
        time.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
        &nbsp;&nbsp;&nbsp;&nbsp;The  Borrower  shall pay to the Agent  from time to time
        such fees as the Agent normally  charges for similar  services in connection  with
        the  Agent&#146;s  administration  of the Collateral  Account and  investments and
        reinvestments of funds therein.
        <BR><BR></FONT></P></TD></TR>

<!--Section 10.6 Performance by Agent-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.6.&nbsp;&nbsp;&nbsp;&nbsp;Performance by Agent.</B>
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Borrower shall
        fail to perform  any  covenant,  duty or  agreement  contained  in any of the Loan
        Documents,  the Agent may  perform or attempt to perform  such  covenant,  duty or
        agreement  on behalf of the  Borrower  after the  expiration  of any cure or grace
        periods set forth herein. In such event, the Borrower shall, at the request of the
        Agent,  promptly  pay  any  amount  reasonably  expended  by  the  Agent  in  such
        performance or attempted  performance to the Agent, together with interest thereon
        at the applicable  Post-Default Rate from the date of such expenditure until paid.
        Notwithstanding  the  foregoing,  neither the Agent nor any Lender  shall have any
        liability or  responsibility  whatsoever for the  performance of any obligation of
        the Borrower under this Agreement or any other Loan Document.
        <BR><BR></FONT></P></TD></TR>

<!--Section 10.7 Rights Cumulative-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 10.7.&nbsp;&nbsp;&nbsp;&nbsp;Rights Cumulative.</B>
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   rights   and
        remedies of the Agent and the Lenders  under this  Agreement and each of the other
        Loan  Documents  shall be  cumulative  and not exclusive of any rights or remedies
        which any of them may otherwise  have under  Applicable  Law. In exercising  their
        respective  rights and remedies the Agent and the Lenders may be selective  and no
        failure or delay by the Agent or any of the Lenders in exercising  any right shall
        operate as a waiver of it, nor shall any single or partial  exercise  of any power
        or right preclude its other or further exercise or the exercise of any other power
        or right.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE XI-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE XI. &nbsp;&nbsp;THE AGENT</B>
        <BR><BR></FONT></P></TD></TR>

<!--11.1 Authorization and Action-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.1.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Action.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each   Lender   hereby
        appoints   and   authorizes   the  Agent  to  take  such  action  as   contractual
        representative on such Lender&#146;s behalf and to exercise such powers under this
        Agreement and the other Loan Documents as are specifically  delegated to the 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 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 Requisite Lenders in accordance with the provisions of this Agreement
        or the Loan Documents, and the exercise by the Requisite Lenders of the powers set
        forth herein or
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-76-</FONT></TD></TR>
</TABLE>


                                            <!--Page 76-->
                                               <PAGE>
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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 11.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        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 Agent a trustee or fiduciary for any Lender nor to impose on
        the Agent duties or obligations other than those expressly provided for herein. At
        the request of a Lender,  the Agent will  forward to such Lender  copies or, where
        appropriate,  originals of the documents  delivered to the Agent  pursuant to this
        Agreement or the other Loan Documents.  The Agent will also furnish to any Lender,
        upon the request of such Lender,  a copy of any certificate or notice furnished to
        the Agent by the Borrower,  any 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
        Obligations),  the 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  Requisite  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 and all holders of any of the Obligations;  provided,  however,  that,
        notwithstanding anything in this Agreement to the contrary, the Agent shall not be
        required to take any action which exposes the 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 Agent shall not exercise any right or remedy it
        or the Lenders may have under any Loan Document  upon the  occurrence of a Default
        or an Event of Default unless the Requisite  Lenders have so directed the Agent to
        exercise such right or remedy.
        <BR><BR></FONT></P></TD></TR>

<!--11.2 Agent's Reliance, Etc.-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.2.&nbsp;&nbsp;&nbsp;&nbsp;Agent&#146;s Reliance, Etc.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding  any
        other provisions of this Agreement or any other Loan Documents,  neither the Agent
        nor any of its directors,  officers,  agents, employees or counsel shall be liable
        for any action  taken or omitted to be taken by it or them under or in  connection
        with this Agreement or any other Loan Document,  except for its or their own gross
        negligence  or  willful  misconduct.   Without  limiting  the  generality  of  the
        foregoing,  the Agent:  (a) may treat the payee of any Note as the holder  thereof
        until the Agent  receives  written  notice of the  assignment or transfer  thereof
        signed by such payee and in form  satisfactory to the Agent;  (b) 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;  (c)
        makes no warranty or  representation  to any Lender or any other  Person and shall
        not be  responsible  to any  Lender  or  any  other  Person  for  any  statements,
        warranties or  representations  made by any Person in or in  connection  with this
        Agreement or any other Loan Document;  (d) shall not have any duty to ascertain or
        to inquire as to the  performance or observance of any of the terms,  covenants or
        conditions of any of this Agreement or any other Loan Document or the satisfaction
        of any conditions  precedent under this Agreement or any 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;  (e) shall not 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 Agent on behalf of the Lenders
        in any such collateral; and (f) shall incur no liability under or in
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-77-</FONT></TD></TR>
</TABLE>


                                            <!--Page 77-->
                                               <PAGE>
                                            <!--Page 78-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 11.2 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        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 or
        telecopy)  believed by it to be genuine  and  signed,  sent or given by the proper
        party or parties.
        <BR><BR></FONT></P></TD></TR>

<!--11.3 Notice of Defaults-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.3.&nbsp;&nbsp;&nbsp;&nbsp;Notice of Defaults.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent  shall not
        be deemed to have  knowledge or notice of the  occurrence of a Default or Event of
        Default  unless  the  Agent has  received  notice  from a Lender  or the  Borrower
        referring to this Agreement,  describing with reasonable  specificity such Default
        or  Event  of  Default  and  stating  that  such  notice  is  a  &#147;notice   of
        default.&#148;  If any Lender  (excluding  the Lender which is also serving as the
        Agent) becomes aware of any Default or Event of Default, it shall promptly send to
        the Agent such a &#147;notice  of  default.&#148;  Further,  if the Agent receives
        such a &#147;notice of  default&#148;,  the Agent shall give prompt notice thereof
        to the Lenders.
        <BR><BR></FONT></P></TD></TR>

<!--11.4 Wachovia as Lender-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.4.&nbsp;&nbsp;&nbsp;&nbsp;Wachovia as Lender.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wachovia, 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
        Agent;  and the  term  &#147;Lender&#148;  or  &#147;Lenders&#148;  shall,  unless
        otherwise  expressly  indicated,  include  Wachovia in each case in its individual
        capacity.  Wachovia 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  Agent  and  any  affiliate  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 other Lenders. The Lenders
        acknowledge  that,  pursuant to such  activities,  Wachovia or its  affiliates may
        receive information regarding the Borrower, other Loan Parties, other Subsidiaries
        and other Affiliates (including information that may be subject to confidentiality
        obligations in favor of such Person) and acknowledge that the Agent shall be under
        no obligation to provide such information to them.
        <BR><BR></FONT></P></TD></TR>

<!--11.5 Approvals of Lenders-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.5.&nbsp;&nbsp;&nbsp;&nbsp;Approvals of Lenders.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All     communications
        from the Agent to any Lender requesting such Lender&#146;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 summary of all oral
        information  provided  to the Agent by the  Borrower  in  respect of the matter or
        issue to be resolved, and (d) shall include the Agent&#146;s recommended course of
        action or determination in respect thereof. Each Lender shall reply promptly,  but
        in any event within 10 Business  Days (or such lesser or greater  period as may be
        specifically  required under the Loan Documents) of receipt of such communication.
        Except as otherwise  provided in this  Agreement  and except with respect to items
        requiring the unanimous consent or approval of the Lenders under Section 12.6.,
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-78-</FONT></TD></TR>
</TABLE>


                                            <!--Page 78-->
                                               <PAGE>
                                            <!--Page 79-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 11.5 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        unless a Lender  shall  give  written  notice  to the Agent  that it  specifically
        objects to the  recommendation  or  determination  of the Agent  (together  with a
        written  explanation of the reasons behind such  objection)  within the applicable
        time period for reply, such Lender shall be deemed to have  conclusively  approved
        of or consented to such recommendation or determination.
        <BR><BR></FONT></P></TD></TR>

<!--11.6 Lender Credit Decision, Etc.-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.6.&nbsp;&nbsp;&nbsp;&nbsp;Lender Credit Decision, Etc.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Lender expressly
        acknowledges and agrees that neither the Agent nor any of its officers, directors,
        employees,  agents,  counsel,  attorneys-in-fact  or other affiliates has made any
        representations  or  warranties  as  to  the  financial   condition,   operations,
        creditworthiness, solvency or other information concerning the business or affairs
        of the Borrower,  any other Loan Party, any Subsidiary or any other Person to such
        Lender and that no act by the Agent hereafter  taken,  including any review of the
        affairs of the Borrower,  any other Loan Party or any other  Subsidiary,  shall be
        deemed to  constitute  any such  representation  or  warranty  by the Agent to any
        Lender. Each Lender  acknowledges that it has,  independently and without reliance
        upon the  Agent,  any  other  Lender  or  counsel  to the  Agent,  or any of their
        respective officers,  directors,  employees and agents, and based on the financial
        statements of the Borrower,  the Subsidiaries or any other Affiliate thereof,  and
        inquiries  of such  Persons,  its  independent  due  diligence of the business and
        affairs of the Borrower, the Loan Parties, the 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,  made its own credit and legal analysis and decision
        to enter into this Agreement and the transactions contemplated hereby. Each Lender
        also acknowledges that it will, independently and without reliance upon the Agent,
        any other  Lender or  counsel  to the 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.  Except for
        notices,  reports and other  documents and  information  expressly  required to be
        furnished  to the  Lenders by the Agent under this  Agreement  or any of the other
        Loan  Documents,  the 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 Agent, or any of its officers, directors, employees, agents, attorneys-in-fact
        or other Affiliates.  Each Lender acknowledges that the Agent&#146;s legal counsel
        in connection with the transactions  contemplated by this Agreement is only acting
        as counsel to the Agent and is not acting as counsel to such Lender.
        <BR><BR></FONT></P></TD></TR>

<!--11.7 Indemnification of Agent-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.7.&nbsp;&nbsp;&nbsp;&nbsp;Indemnification of Agent.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Lender agrees to
        indemnify  the 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&#146;s  respective  Commitment  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 Agent (in its capacity as
        Agent but not as a  Lender)  in any way  relating  to or  arising  out of the Loan
        Documents, any transaction contemplated hereby or thereby
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-79-</FONT></TD></TR>
</TABLE>


                                            <!--Page 79-->
                                               <PAGE>
                                            <!--Page 80-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 11.7 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        or  any  action   taken  or  omitted  by  the  Agent  under  the  Loan   Documents
        (collectively,  &#147;Indemnifiable  Amounts&#148;);  provided,  however,  that no
        Lender shall be liable for any portion of such Indemnifiable Amounts to the extent
        resulting  from  the  Agent&#146;s  gross  negligence  or  willful  misconduct  as
        determined  by a  court  of  competent  jurisdiction  in a  final,  non-appealable
        judgment or if the Agent fails to follow the written  direction  of the  Requisite
        Lenders unless such failure results from the Agent following the advice of counsel
        to the Agent of which advice the Lenders have received  notice.  Without  limiting
        the generality of the foregoing but subject to the preceding proviso,  each Lender
        agrees to reimburse  the 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 out-of-pocket expenses (including counsel fees of the
        counsel(s) of the Agent&#146;s  own choosing)  incurred by the Agent in connection
        with the preparation,  negotiation,  execution, or enforcement 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 Agent to  enforce  the terms of the
        Loan Documents  and/or collect any Obligations,  any &#147;lender  liability&#148;
        suit or claim brought against the Agent and/or the Lenders,  and any claim or suit
        brought  against the Agent,  and/or the Lenders  arising  under any  Environmental
        Laws. Such  out-of-pocket  expenses  (including counsel fees) shall be advanced by
        the Lenders on the  request of the Agent  notwithstanding  any claim or  assertion
        that the Agent is not  entitled to  indemnification  hereunder  upon receipt of an
        undertaking  by the Agent  that the Agent  will  reimburse  the  Lenders  if it is
        actually  and finally  determined  by a court of competent  jurisdiction  that the
        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 Agent for any  Indemnifiable  Amount following  payment by any
        Lender to the Agent in  respect  of such  Indemnifiable  Amount  pursuant  to this
        Section,  the Agent shall share such  reimbursement  on a ratable  basis with each
        Lender making any such payment.
        <BR><BR></FONT></P></TD></TR>

<!--11.8 Successor Agent-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.8.&nbsp;&nbsp;&nbsp;&nbsp;Successor Agent.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent may resign
        at any time as Agent  under the Loan  Documents  by giving at least 30  days&#146;
        prior written  notice  thereof to the Lenders and the  Borrower.  The Agent may be
        removed as Agent  under the Loan  Documents  for good cause by all of the  Lenders
        (other than the Lender then  acting as Agent)  upon at least 30  days&#146;  prior
        notice.  Upon any such resignation or removal,  the Requisite  Lenders (other than
        the Lender then acting as Agent, in the case of the removal of the Agent under the
        immediately  preceding sentence) shall have the right to appoint a successor Agent
        which  appointment  shall,  provided  no Default  or Event of  Default  shall have
        occurred and be  continuing,  be subject to the  Borrower&#146;s  approval,  which
        approval shall not be  unreasonably  withheld or delayed (except that the Borrower
        shall, in all events, be deemed to have approved each Lender and its affiliates as
        a  successor  Agent).  If no  successor  Agent  shall  have been so  appointed  in
        accordance with the immediately  preceding sentence,  and shall have accepted such
        appointment,  within 30 days after the resigning  Agent&#146;s giving of notice of
        resignation  or  the  Lenders&#146;  removal  of the  resigning  Agent,  then  the
        resigning  or removed  Agent may,  on behalf of the  Lenders,  appoint a successor
        Agent,  which  shall be a Lender,  if any Lender  shall be  willing to serve,  and
        otherwise  shall be a  commercial  bank having total  combined  assets of at least
        $50,000,000,000.  Upon the acceptance of any  appointment as Agent  hereunder by a
        successor Agent, such successor Agent shall thereupon succeed to and become vested
        with all the rights,  powers,  privileges  and duties of the retiring Agent and of
        the Swingline Lender, and
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-80-</FONT></TD></TR>
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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 11.8 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        the retiring Agent shall be discharged from its duties and  obligations  under the
        Loan Documents. Such successor Agent shall issue letters of credit in substitution
        for the Letters of Credit,  if any,  outstanding at the time of such succession or
        make other  arrangements  satisfactory to the current Agent to effectively  assume
        the obligations of the current Agent with respect to such Letters of Credit. After
        any Agent&#146;s resignation or removal hereunder as Agent, the provisions of this
        Article XI.  shall  continue  to inure to its  benefit as to any actions  taken or
        omitted to be taken by it while it was Agent under the Loan Documents.
        <BR><BR></FONT></P></TD></TR>

<!--11.9 Titled Agents-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 11.9.&nbsp;&nbsp;&nbsp;&nbsp;Titled Agents.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each  of the  Titled
        Agents 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   of   &#147;Sole    Lead    Arranger&#148;,    &#147;Book    Runner,&#148;
        &#147;Syndication  Agent&#148; and  &#147;Co-Documentation  Agent&#148; are solely
        honorific and imply no fiduciary  responsibility  on the part of the Titled Agents
        to the Agent,  the  Borrower  or any Lender  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.
        <BR><BR></FONT></P></TD></TR>

<!--ARTICLE XII-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>ARTICLE XII. &nbsp;&nbsp;MISCELLANEOUS</B>
        <BR><BR></FONT></P></TD></TR>

<!--12.1 Notices-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.1.&nbsp;&nbsp;&nbsp;&nbsp;Notices.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless       otherwise
        provided  herein,  communications  provided for hereunder  shall be in writing and
        shall be mailed, telecopied or delivered as follows:
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Borrower:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=15%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=-1>Commercial Net Lease
        Realty, Inc.<BR>
        450 S. Orange Avenue, Suite 900<BR>
        Orlando, Florida 32801<BR>
        Attn:&nbsp;&nbsp;Kevin B. Habicht<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(407) 265-7348<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(407) 650-1044
        </FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Agent:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=15%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=-1>
        Wachovia Bank, National Association<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attn:&nbsp;&nbsp;Rex E. Rudy<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(704) 383-6506<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(704) 383-6205
        </FONT></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-81-</FONT></TD></TR>
</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--Section 12.1 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to a Lender:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=15%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=-1>
        To such Lender&#146;s address or telecopy number, as applicable, set forth on its
        signature page hereto or in the applicable Assignment and Acceptance Agreement;
        <BR><BR></FONT></TD></TR>
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        or, as to each party at such other address as shall be designated by such party in
        a written notice to the other parties  delivered in compliance  with this Section.
        All such notices and other  communications  shall be effective (i) if mailed, when
        received; (ii) if telecopied,  when transmitted;  or (iii) if hand delivered, when
        delivered.  Notwithstanding  the immediately  preceding  sentence,  all notices or
        communications  to the Agent or any Lender  under  Article II. shall be effective
        only when  actually  received.  Neither  the Agent nor any Lender  shall incur any
        liability to the Borrower (nor shall the Agent incur any liability to the Lenders)
        for acting upon any  telephonic  notice  referred to in this  Agreement  which the
        Agent or such  Lender,  as the case may be,  believes  in good  faith to have been
        given by a Person  authorized  to deliver such notice or for  otherwise  acting in
        good faith hereunder.
        <BR><BR></FONT></P></TD></TR>

<!--12.2 Expenses-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.2.&nbsp;&nbsp;&nbsp;&nbsp;Expenses.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  agrees
        (a) to pay or reimburse the Agent for all of its  reasonable  out-of-pocket  costs
        and  expenses  incurred  in  connection  with  the  preparation,  negotiation  and
        execution of, and any amendment,  supplement or  modification  to, any of the Loan
        Documents  (including  due  diligence  expenses  and travel  expenses  relating to
        closing), and the consummation of the transactions contemplated thereby, including
        the  reasonable  fees and  disbursements  of counsel  to the Agent,  (b) to pay or
        reimburse the Agent, and the Lenders for all their costs and expenses  incurred in
        connection  with the  enforcement  or  preservation  of any rights  under the Loan
        Documents,  including the reasonable fees and  disbursements  of their  respective
        counsel  (including the allocated  fees and expenses of in-house  counsel) and any
        payments  in  indemnification  or  otherwise  payable by the  Lenders to the Agent
        pursuant to the Loan  Documents,  (c) to pay, and  indemnify and hold harmless the
        Agent, and the Lenders from, any and all recording and filing fees and any and all
        liabilities  with  respect  to, or  resulting  from any failure to pay or delay in
        paying,  documentary,  stamp, excise and other similar taxes, if any, which may be
        payable or determined to be payable in connection  with the execution and delivery
        of any of the Loan  Documents,  or  consummation  of any amendment,  supplement or
        modification  of, or any  waiver  or  consent  under or in  respect  of,  any Loan
        Document  and  (d) to the  extent  not  already  covered  by any of the  preceding
        subsections,  to pay or reimburse  the Agent,  and the Lenders for all their costs
        and expenses incurred in connection with any bankruptcy or other proceeding of the
        type described in Sections 10.1.(f) or 10.1.(g), including the reasonable fees and
        disbursements  of  counsel  to the Agent  and any  Lender,  whether  such fees and
        expenses  are  incurred  prior  to,  during  or  after  the  commencement  of such
        proceeding  or the  confirmation  or  conclusion  of any such  proceeding.  If the
        Borrower shall fail to pay any amounts  required to be paid by it pursuant to this
        Section,  the Agent,  and/or  the  Lenders  may pay such  amounts on behalf of the
        Borrower and either deem the same to be Loans  outstanding  hereunder or otherwise
        Obligations owing hereunder.
        </FONT></P></TD></TR>

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.3 Setoff-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.3.&nbsp;&nbsp;&nbsp;&nbsp;Setoff.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject  to  Section
        3.3. and in addition to any rights now or hereafter  granted under  Applicable Law
        and not by way of limitation of any such rights,  the Agent,  each Lender and each
        Participant is hereby authorized by the Borrower, at any time or from time to time
        during  the  continuance  of an Event of  Default,  without  prior  notice  to the
        Borrower or to any other Person,  any such notice being hereby  expressly  waived,
        but in the case of a Lender or Participant subject to receipt of the prior written
        consent  of the  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 Agent,
        such Lender or any affiliate of the Agent or such Lender,  to or for the credit or
        the  account of the  Borrower  against  and on account of any of the  Obligations,
        irrespective  of whether or not any or all of the Loans and all other  Obligations
        have been declared to be, or have otherwise  become,  due and payable as permitted
        by Section 10.2., and although such obligations shall be contingent or unmatured.
        <BR><BR></FONT></P></TD></TR>

<!--12.4 Litigation; Jurisdiction; Other Matters; Waivers-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.4.&nbsp;&nbsp;&nbsp;&nbsp;Litigation; Jurisdiction; Other Matters; Waivers.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH    PARTY   HERETO
        ACKNOWLEDGES  THAT ANY DISPUTE OR CONTROVERSY  BETWEEN OR AMONG THE BORROWER,  THE
        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  LENDERS,  THE  AGENT AND THE
        BORROWER 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 AGREEMENT, THE NOTES, OR ANY OTHER
        LOAN  DOCUMENT  OR BY  REASON  OF ANY  OTHER  SUIT,  CAUSE OF  ACTION  OR  DISPUTE
        WHATSOEVER  BETWEEN OR AMONG THE BORROWER,  THE AGENT OR ANY OF THE LENDERS OF ANY
        KIND OR NATURE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH  OF THE BORROWER,
        THE AGENT AND EACH LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT LOCATED IN
        NORTH  CAROLINA  OR,  AT THE  OPTION OF THE  AGENT,  ANY STATE  COURT  LOCATED  IN
        CHARLOTTE,  NORTH  CAROLINA,  SHALL HAVE  JURISDICTION  TO HEAR AND  DETERMINE ANY
        CLAIMS OR DISPUTES BETWEEN OR AMONG THE BORROWER, THE AGENT OR ANY OF THE LENDERS,
        PERTAINING  DIRECTLY OR  INDIRECTLY  TO THIS  AGREEMENT,  THE LOANS AND LETTERS OF
        CREDIT,  THE NOTES OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR
        THEREFROM.  THE BORROWER AND EACH OF THE LENDERS EXPRESSLY SUBMITS AND CONSENTS IN
        ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS.
        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
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-83-</FONT></TD></TR>
</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.4 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        OF ANY  ACTION BY THE AGENT OR ANY LENDER OR THE  ENFORCEMENT  BY THE AGENT OR ANY
        LENDER  OF  ANY  JUDGMENT   OBTAINED  IN  SUCH  FORUM  IN  ANY  OTHER  APPROPRIATE
        JURISDICTION.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 AGREEMENT.
        <BR><BR></FONT></P></TD></TR>

<!--12.5 Successors and Assigns-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.5.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this
        Agreement shall be binding upon and inure to the benefit of the parties hereto and
        their respective  successors and permitted  assigns,  except that the Borrower may
        not  assign or  otherwise  transfer  any of its rights or  obligations  under this
        Agreement 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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may make,
        carry or transfer  Loans at, to or for the account of any of its branch offices or
        the office of an affiliate of such Lender except to the extent such transfer would
        result in increased costs to the Borrower.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may at any
        time  grant  to  one or  more  banks  or  other  financial  institutions  (each  a
        &#147;Participant&#148;)   participating   interests  in  its  Commitment  or  the
        Obligations owing to such Lender;  provided,  however,  (i) any such participating
        interest  must be for a constant  and not a varying  percentage  interest  (ii) no
        Lender may grant a participating interest in its Commitment, or if the Commitments
        have been terminated, the aggregate outstanding principal balance of Notes held by
        it, in an amount less than  $5,000,000  and (iii) after giving  effect to any such
        participation  by a Lender,  the amount of its  Commitment,  or if the Commitments
        have been terminated, the aggregate outstanding principal balance of Notes held by
        it,  in which it has not  granted  any  participating  interests  much be equal to
        $5,000,000  and integral  multiples of  $1,000,000  in excess  thereof.  Except as
        otherwise  provided  in Section  12.3.,  no  Participant  shall have any rights or
        benefits under this Agreement or any other Loan Document. In the event of any such
        grant by a Lender of a participating interest to a Participant,  such Lender shall
        remain  responsible  for the  performance of its  obligations  hereunder,  and the
        Borrower and the Agent shall continue to deal solely and directly with such Lender
        in connection with such Lender&#146;s rights and obligations under this Agreement.
        Any agreement pursuant to which any Lender may grant such a participating interest
        shall provide that such Lender shall retain the sole right and  responsibility  to
        enforce the obligations of the Borrower hereunder  including,  without limitation,
        the right to approve any  amendment,  modification  or waiver of any  provision of
        this Agreement; provided, however, such Lender may agree with the Participant that
        it will not,  without the consent of the  Participant,  agree to (i) increase,  or
        extend the term or extend the time or waive any  requirement  for the reduction or
        termination of, such Lender&#146;s Commitment,  (ii) extend the date fixed for the
        payment of principal of or interest on the Loans or portions thereof owing to such
        Lender, (iii) reduce the
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-84-</FONT></TD></TR>
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        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.5 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        amount of any such payment of principal, (iv) reduce the rate at which interest is
        payable thereon or (v) release any Guarantor (except as otherwise  permitted under
        Section  7.11.(b)).  An  assignment  or other  transfer  which is not permitted by
        subsection  (d) or (e) below shall be given effect for purposes of this  Agreement
        only to the extent of a  participating  interest  granted in accordance  with this
        subsection  (c).  Upon request from the Agent,  a Lender shall notify the Agent of
        the sale of any participation hereunder and, if requested by the Agent, certify to
        the Agent that such participation is permitted hereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any  Lender may with
        the prior  written  consent  of the Agent  and,  so long as no Default or Event of
        Default shall have occurred and be continuing,  the Borrower  (which  consent,  in
        each case,  shall not be  unreasonably  withheld),  assign to one or more Eligible
        Assignees  (each an  &#147;Assignee&#148;)  all or a portion of its Commitment and
        its other rights and  obligations  under this  Agreement and the Notes;  provided,
        however,  (i) no such consent by the Borrower shall be required in the case of any
        assignment to another Lender or any affiliate of such Lender or another Lender and
        no such consent by the Agent shall be required in the case of any  assignment by a
        Lender to any affiliate of such Lender; (ii) any partial assignment shall be in an
        amount at least equal to $5,000,000 and integral multiples of $1,000,000 in excess
        thereof and after giving effect to such assignment the assigning  Lender retains a
        Commitment,  or if the  Commitments  have been  terminated,  holds Notes having an
        aggregate  outstanding  principal  balance,  of at least  $5,000,000  and integral
        multiples of $1,000,000 in excess thereof; and (iii) each such assignment shall be
        effected by means of an Assignment  and Acceptance  Agreement.  Upon execution and
        delivery of such instrument and payment by such Assignee to such transferor Lender
        of an amount equal to the purchase price agreed between such transferor Lender and
        such  Assignee,  such  Assignee  shall  be  deemed  to be a  Lender  party to this
        Agreement as of the effective date of the Assignment and Acceptance  Agreement and
        shall have all the rights and  obligations  of a Lender with a  Commitment  as set
        forth in such Assignment and Acceptance Agreement, and the transferor Lender shall
        be released  from its  obligations  hereunder to a  corresponding  extent,  and no
        further consent or action by any party shall be required. Upon the consummation of
        any assignment  pursuant to this subsection (d), the transferor  Lender, the Agent
        and the Borrower shall make appropriate  arrangements so that new Notes are issued
        to the Assignee and such transferor Lender, as appropriate. In connection with any
        such assignment,  the transferor  Lender shall pay to the Agent an  administrative
        fee for processing such assignment in the amount of $3,500.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Lender (each,  a
        &#147;Designating  Lender&#148;)  may at any  time  while  the  Borrower  has been
        assigned an Investment Grade Rating from either S&amp;P or Moody&#146;s  designate
        one Designated Lender to fund Bid Rate Loans on behalf of such Designating  Lender
        subject to the terms of this  subsection (e) and the provisions in the immediately
        preceding  subsections (c) and (d) shall not apply to such designation.  No Lender
        may  designate  more  than  one  Designated  Lender.  The  parties  to  each  such
        designation  shall  execute  and  deliver  to  the  Agent  for  its  acceptance  a
        Designation Agreement. Upon such receipt of an appropriately completed Designation
        Agreement executed by a Designating Lender and a designee  representing that it is
        a Designated  Lender,  the Agent will accept such  Designation  Agreement and give
        prompt notice  thereof to the Borrower,  whereupon (i) the Borrower  shall execute
        and deliver to the  Designating  Lender a  Designated  Lender Note  payable to the
        order of the Designated  Lender,  (ii) from and after the effective date specified
        in the Designation Agreement, the Designated Lender shall
        </FONT></P></TD></TR>

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.5 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        become a party to this  Agreement with a right to make Bid Rate Loans on behalf of
        its Designating  Lender pursuant to Section 2.2. after the Borrower has accepted a
        Bid Rate  Loan (or  portion  thereof)  of the  Designating  Lender,  and (iii) the
        Designated  Lender  shall not be required  to make  payments  with  respect to any
        obligations  in this  Agreement  except to the extent of excess  cash flow of such
        Designated  Lender which is not otherwise  required to repay  obligations  of such
        Designated  Lender  which  are  then  due and  payable;  provided,  however,  that
        regardless of such  designation  and  assumption  by the  Designated  Lender,  the
        Designating  Lender shall be and remain  obligated to the Borrower,  the Agent and
        the Lenders for each and every of the  obligations of the  Designating  Lender and
        its related Designated Lender with respect to this Agreement,  including,  without
        limitation,  any  indemnification  obligations  under Section  11.7.  and any sums
        otherwise  payable to the  Borrower by the  Designated  Lender.  Each  Designating
        Lender shall serve as the administrative  agent of the Designated Lender and shall
        on behalf of, and to the exclusion of, the Designated  Lender: (i) receive any and
        all  payments  made for the  benefit  of the  Designated  Lender and (ii) give and
        receive all communications and notices and take all actions hereunder,  including,
        without limitation,  votes, approvals,  waivers,  consents and amendments under or
        relating  to this  Agreement  and the  other  Loan  Documents.  Any  such  notice,
        communication, vote, approval, waiver, consent or amendment shall be signed by the
        Designating Lender as administrative agent for the Designated Lender and shall not
        be signed by the  Designated  Lender on its own behalf and shall be binding on the
        Designated  Lender to the same extent as if signed by the Designated Lender on its
        own behalf.  The Borrower,  the Agent and the Lenders may rely thereon without any
        requirement that the Designated Lender sign or acknowledge the same. No Designated
        Lender may assign or transfer  all or any  portion of its  interest  hereunder  or
        under any other Loan Document,  other than  assignments to the Designating  Lender
        which originally designated such Designated Lender. The Borrower,  the Lenders and
        the Agent each hereby  agrees that it will not  institute  against any  Designated
        Lender or join any other Person in instituting  against any Designated  Lender any
        bankruptcy,  reorganization,  arrangement,  insolvency or  liquidation  proceeding
        under any federal or state  bankruptcy or similar law, until the later to occur of
        (x)  one  year  and one day  after  the  payment  in full of the  latest  maturing
        commercial  paper note issued by such  Designated  Lender and (y) the  Termination
        Date.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Agent   shall
        maintain  at the  Principal  Office  a copy  of  each  Assignment  and  Acceptance
        Agreement  delivered to and accepted by it and a register for the  recordation  of
        the names and addresses of the Lenders and the Commitment of each Lender from time
        to time (the  &#147;Register&#148;).  The Agent  shall  give each  Lender  and the
        Borrower  notice of the assignment by any Lender of its rights as  contemplated by
        this Section. The Borrower,  the Agent and the Lenders may treat each Person whose
        name is recorded in the  Register as a Lender  hereunder  for all purposes of this
        Agreement.  The Register and copies of each  Assignment and  Acceptance  Agreement
        shall be available for  inspection by the Borrower or any Lender at any reasonable
        time and from time to time upon  reasonable  prior  notice to the Agent.  Upon its
        receipt of an Assignment and Acceptance Agreement executed by an assigning Lender,
        together  with each Note  subject to such  assignment,  the Agent  shall,  if such
        Assignment and  Acceptance  Agreement has been completed and if the Agent receives
        the  processing  and recording fee described in subsection  (d) above,  (i) accept
        such Assignment and Acceptance  Agreement,  (ii) record the information  contained
        therein in the Register and (iii)&#160;give prompt notice thereof to the Borrower.
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.5 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In   addition  to  the
        assignments and  participations  permitted under the foregoing  provisions of this
        Section,  any Lender may assign and pledge all or any portion of its Loans and its
        Notes to any Federal Reserve Bank as collateral  security pursuant to Regulation A
        and any Operating Circular issued by such Federal Reserve Bank, and such Loans and
        Notes shall be fully  transferable as provided  therein.  No such assignment shall
        release the assigning Lender from its obligations hereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Lender may furnish
        any  information  concerning  the  Borrower,  any other Loan Party or any of their
        respective  Subsidiaries  in the  possession  of such  Lender from time to time to
        Assignees and  Participants  (including  prospective  Assignees and  Participants)
        subject to compliance with Section 12.8.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything   in  this
        Section to the contrary  notwithstanding,  no Lender may assign or participate any
        interest in any Loan held by it hereunder to the Borrower, any other Loan Party or
        any of their respective Affiliates or Subsidiaries.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each  Lender  agrees
        that, without the prior written consent of the Borrower and the Agent, it will not
        make any assignment  hereunder in any manner or under any circumstances that would
        require  registration or  qualification  of, or filings in respect of, any Loan or
        Note under the Securities Act or any other securities laws of the United States of
        America or of any other jurisdiction.
        <BR><BR></FONT></P></TD></TR>

<!--12.6 Amendments-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.6.&nbsp;&nbsp;&nbsp;&nbsp;Amendments.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as  otherwise
        expressly  provided  in this  Agreement,  any  consent  or  approval  required  or
        permitted by this  Agreement or any other Loan Document to be given by the Lenders
        may be given,  and any term of this Agreement or of any other Loan Document may be
        amended, and the performance or observance by the Borrower or any other Loan Party
        or any  Subsidiary  of any terms of this  Agreement or such other Loan Document or
        the continuance of any Default or Event of Default may be waived (either generally
        or in a particular instance and either  retroactively or prospectively)  with, but
        only with,  the written  consent of the Requisite  Lenders (and, in the case of an
        amendment  to  any  Loan   Document,   the  written   consent  of  the  Borrower).
        Notwithstanding  the foregoing,  no amendment,  waiver or consent shall, unless in
        writing,  and signed by all of the Lenders (or the Agent at the written  direction
        of the  Lenders),  do any of the  following:  (i)  change the  Commitments  of the
        Lenders  (except for (x) any increase in the Commitments  effectuated  pursuant to
        Section  2.15.  or (y) any  decrease in the  Commitments  effectuated  pursuant to
        Section 2.14. or that is pro rata in accordance with the respective amounts of the
        Lenders&#146;  Commitments) or  subject the Lenders to any additional  obligations;
        (ii) reduce the principal of, or interest  rates that have accrued or that will be
        charged  on the  outstanding  principal  amount  of,  any  Loans  or Fees or other
        Obligations;  (iii) reduce the amount of any Fees payable  hereunder;  (iv) modify
        the definition of the term  &#147;Termination  Date&#148;  (except as contemplated
        under Section  2.12.) or otherwise  postpone any date fixed for any payment of any
        principal of, or interest on, any Loans or any other  Obligations  (including  the
        waiver of any  Default or Event of Default  as a result of the  nonpayment  of any
        such  Obligations as and when due), or extend the expiration date of any Letter of
        Credit beyond the Termination  Date; (v) amend or otherwise  modify the provisions
        of Section 3.2.; (vi) modify the definition of the
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

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<!--12.6 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        term  &#147;Requisite  Lenders&#148;,  or modify in any other manner the number or
        percentage of the Lenders required to make any  determinations or waive any rights
        hereunder or to modify any provision  hereof,  including without  limitation,  any
        modification  of this Section 12.6. if such  modification  would have such effect;
        (vii) release any Guarantor  from its  obligations  under the Guaranty  (except as
        otherwise permitted under Section 7.11.(b));  (viii) amend or otherwise modify the
        provisions of Section 2.16.(a);  or (ix) amend Section 9.1.(d),  waive any Default
        or Event of Default occurring under Section 10.1.(c)(i) resulting from a violation
        of such Section, or modify the definition of the terms &#147;Unsecured  Debt&#148;
        and &#147;Unencumbered Asset Value&#148;. Further, no amendment, waiver or consent
        unless in writing and signed by the Agent,  in  addition  to the Lenders  required
        hereinabove  to take such  action,  shall affect the rights or duties of the Agent
        under this Agreement or any of the other Loan Documents. Any amendment,  waiver or
        consent  relating to Section 2.3. or the obligations of the Swingline Lender under
        this  Agreement  or any other Loan  Document  shall,  in  addition  to the Lenders
        required  hereinabove  to take such  action,  require the  written  consent of the
        Swingline Lender. No waiver shall extend to or affect any obligation not expressly
        waived or impair any right consequent thereon and any amendment, waiver or consent
        shall be effective only in the specific  instance and for the specific purpose set
        forth therein.  No course of dealing or delay or omission on the part of the Agent
        or any  Lender in  exercising  any right  shall  operate  as a waiver  thereof  or
        otherwise be  prejudicial  thereto.  Except as otherwise  explicitly  provided for
        herein or in any other Loan  Document,  no notice to or demand  upon the  Borrower
        shall entitle the Borrower to any other or further  notice or demand in similar or
        other circumstances.
        <BR><BR></FONT></P></TD></TR>

<!--12.7 Nonliability of Agent and Lenders-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.7.&nbsp;&nbsp;&nbsp;&nbsp;Nonliability of Agent and Lenders.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The       relationship
        between  the  Borrower  and the  Lenders  and the Agent  shall be  solely  that of
        borrower  and lender.  Neither the Agent nor any Lender  shall have any  fiduciary
        responsibilities  to the Borrower and no provision in this  Agreement or in any of
        the other Loan  Documents,  and no course of  dealing  between or among any of the
        parties hereto, shall be deemed to create any fiduciary duty owing by the Agent or
        any Lender to any Lender,  the Borrower,  any  Subsidiary or any other Loan Party.
        Neither the Agent nor any Lender undertakes any  responsibility to the Borrower to
        review or inform the  Borrower of any matter in  connection  with any phase of the
        Borrower&#146;s business or operations.
        <BR><BR></FONT></P></TD></TR>

<!--12.8 Confidentiality-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.8.&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except   as  otherwise
        provided by Applicable Law, the Agent and each Lender shall utilize all non-public
        information obtained pursuant to the requirements of this Agreement which has been
        identified as  confidential  or proprietary by the Borrower in accordance with its
        customary  procedure for handling  confidential  information of this nature and in
        accordance  with  safe and  sound  banking  practices  but in any  event  may make
        disclosure:  (a) to any of their respective  affiliates (provided they shall agree
        to keep such information confidential in accordance with the terms of this Section
        12.8.);  (b) as reasonably  requested by any bona fide  Assignee,  Participant  or
        other transferee in connection with the contemplated transfer of any Commitment or
        participations  therein as permitted  hereunder (provided they shall agree to keep
        such information  confidential in accordance with the terms of this Section);  (c)
        as required or requested by any Governmental  Authority or representative  thereof
        or pursuant to legal process or in connection with any legal  proceedings;  (d) to
        the Agent&#146;s or such Lender&#146;s independent auditors and other
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

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<!--12.8 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        professional  advisors (provided they shall be notified of the confidential nature
        of the  information);  (e) after the  happening and during the  continuance  of an
        Event of Default,  to any other  Person,  in  connection  with the exercise by the
        Agent or the Lenders of rights hereunder or under any of the other Loan Documents;
        (f) upon  Borrower&#146;s  prior consent (which consent shall not be  unreasonably
        withheld),  to any  contractual  counter-parties  to any swap or  similar  hedging
        agreement  or to any rating  agency;  and (g) to the extent such  information  (x)
        becomes  publicly  available other than as a result of a breach of this Section or
        (y) becomes available to the Agent or any Lender on a nonconfidential basis from a
        source other than the Borrower or any Affiliate.  Notwithstanding  anything to the
        contrary  set forth  herein  or in any  other  written  or oral  understanding  or
        agreement to which the parties hereto are parties or by which they are bound,  the
        parties hereto  acknowledge and agree that (i) any obligations of  confidentiality
        contained  herein  and  therein  do not  apply  and  have  not  applied  from  the
        commencement  of  discussions  between  the parties to the tax  treatment  and tax
        structure of the transactions  contemplated by the Loan Documents (and any related
        transactions  or  arrangements),  and (ii) each party (and each of its  employees,
        representatives,  or other  agents) may disclose to any and all  Persons,  without
        limitation of any kind,  the tax  treatment and tax structure of the  transactions
        contemplated  by the Loan  Documents  and all  materials  of any  kind  (including
        opinions or other tax analyses)  that are provided to such party  relating to such
        tax treatment and tax  structure,  all within the meaning of Treasury  Regulations
        Section  1.6011-4;  <U>provided</U>,  <U>however</U>,  that  with  respect  to any
        document or similar item that in either case contains  information  concerning the
        tax  treatment  or tax  structure  of the  transactions  contemplated  by the Loan
        Documents as well as other  information,  this  sentence  shall only apply to such
        portions of the document or similar  item that relate to the tax  treatment or tax
        structure of the transactions contemplated by the Loan Documents; <U>provided</U>,
        <U>further</U>,   <U>however</U>,   to  the  extent  not  inconsistent   with  the
        immediately  preceding  clause  (ii),  the parties  hereto do not intend  anything
        contained in this sentence to be a waiver of the  privilege  each has to maintain,
        in its sole discretion,  the  confidentiality of a communication with its attorney
        or a confidential communication with a federally authorized tax practitioner under
        Section  7525  of  the  Internal   Revenue  Code  relating  to  the   transactions
        contemplated by the Loan Documents.
        <BR><BR></FONT></P></TD></TR>

<!--12.9 Indemnification-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.9.&nbsp;&nbsp;&nbsp;&nbsp;Indemnification.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall and
        hereby  agrees to  indemnify,  defend and hold  harmless  the  Agent,  each of the
        Lenders, any affiliate of the Agent or any Lender, and their respective directors,
        officers, shareholders,  agents, employees and counsel (each referred to herein as
        an  &#147;Indemnified  Party&#148;)  from and against any and all of the following
        (collectively, the &#147;Indemnified Costs&#148;): losses, costs, claims, damages,
        liabilities,  deficiencies,  judgments  or  expenses  of  every  kind  and  nature
        (including,  without limitation,  amounts paid in settlement,  court costs and the
        reasonable  fees and  disbursements  of counsel  incurred in  connection  with any
        litigation,   investigation,  claim  or  proceeding  or  any  advice  rendered  in
        connection therewith,  but excluding losses, costs, claims, damages,  liabilities,
        deficiencies,  judgments  or  expenses  indemnification  in  respect  of  which is
        specifically  covered by Section  3.12.  or 4.1. or  expressly  excluded  from the
        coverage of such  Sections  3.12.  or 4.1.)  incurred by an  Indemnified  Party in
        connection  with,  arising  out of, or by reason  of,  any suit,  cause of action,
        claim,  arbitration,   investigation  or  settlement,   consent  decree  or  other
        proceeding   (the   foregoing   referred   to   herein   as   an   &#147;Indemnity
        Proceeding&#148;)  which is in any way related directly or indirectly to: (i) this
        Agreement or any other Loan  Document or the  transactions  contemplated  thereby;
        (ii) the
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.9 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        making of any Loans or issuance of Letters of Credit  hereunder;  (iii) any actual
        or proposed use by the Borrower of the proceeds of the Loans or Letters of Credit;
        (iv) the Agent&#146;s or any Lender&#146;s  entering into this Agreement;  (v) the
        fact that the Agent and the Lenders have established the credit facility evidenced
        hereby in favor of the Borrower;  (vi) the fact that the Agent and the Lenders are
        creditors of the Borrower  and have or are alleged to have  information  regarding
        the financial  condition,  strategic plans or business  operations of the Borrower
        and the  Subsidiaries;  (vii) the fact that the Agent and the Lenders are material
        creditors of the Borrower and are alleged to influence  directly or indirectly the
        business  decisions  or  affairs of the  Borrower  and the  Subsidiaries  or their
        financial  condition;  (viii) the exercise of any right or remedy the Agent or the
        Lenders  may have under this  Agreement  or the other  Loan  Documents;  provided,
        however,  that the Borrower  shall not be obligated to indemnify  any  Indemnified
        Party for any acts or  omissions  of such  Indemnified  Party in  connection  with
        matters  described  in this clause  (viii) that  constitute  gross  negligence  or
        willful misconduct; or (ix) any violation or non-compliance by the Borrower or any
        Subsidiary of any Applicable Law (including any Environmental Law) including,  but
        not limited to, any  Indemnity  Proceeding  commenced by (A) the Internal  Revenue
        Service or state  taxing  authority  or (B) any  Governmental  Authority  or other
        Person under any Environmental Law, including any Indemnity  Proceeding  commenced
        by a Governmental  Authority or other Person  seeking  remedial or other action to
        cause the Borrower or its  Subsidiaries  (or its  respective  properties)  (or the
        Agent and/or the Lenders as successors  to the Borrower) to be in compliance  with
        such Environmental Laws.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower&#146;s
        indemnification  obligations under this Section 12.9. shall apply to all Indemnity
        Proceedings  arising  out of, or  related  to,  the  foregoing  whether  or not an
        Indemnified  Party  is a  named  party  in  such  Indemnity  Proceeding.  In  this
        connection,  this  indemnification  shall  cover  all  Indemnified  Costs  of  any
        Indemnified  Party in connection with any deposition of any  Indemnified  Party or
        compliance with any subpoena  (including any subpoena requesting the production of
        documents). This indemnification shall, among other things, apply to any Indemnity
        Proceeding  commenced by other  creditors of the Borrower or any  Subsidiary,  any
        shareholder of the Borrower or any  Subsidiary  (whether such  shareholder(s)  are
        prosecuting such Indemnity Proceeding in their individual capacity or derivatively
        on behalf of the  Borrower),  any account debtor of the Borrower or any Subsidiary
        or by any Governmental  Authority. If indemnification is to be sought hereunder by
        an Indemnified Party, then such Indemnified Party shall notify the Borrower of the
        commencement of any Indemnity Proceeding;  provided,  however, that the failure to
        so notify the Borrower  shall not relieve the Borrower from any liability  that it
        may have to such Indemnified Party pursuant to this Section 12.9.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This   indemnification
        shall  apply to any  Indemnity  Proceeding  arising  during  the  pendency  of any
        bankruptcy proceeding filed by or against the Borrower and/or any Subsidiary.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All   out-of-pocket
        fees and  expenses of, and all amounts paid to  third-persons  by, an  Indemnified
        Party shall be advanced by the Borrower at the request of such  Indemnified  Party
        notwithstanding any claim or assertion by the Borrower that such Indemnified Party
        is not entitled to  indemnification  hereunder  upon receipt of an  undertaking by
        such Indemnified  Party that such Indemnified Party will reimburse the Borrower if
        it is actually and finally  determined by a court of competent  jurisdiction  that
        such Indemnified Party is not so entitled to
        </FONT></P></TD></TR>

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</TABLE>


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        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.9 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        indemnification  hereunder  together with reasonable costs of collection  actually
        incurred, including court costs and attorneys fees.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An Indemnified Party
        may  conduct its own  investigation  and  defense  of, and may  formulate  its own
        strategy with respect to, any Indemnity Proceeding covered by this Section and, as
        provided above, all Indemnified  Costs incurred by such Indemnified Party shall be
        reimbursed  by the  Borrower.  No  action  taken by  legal  counsel  chosen  by an
        Indemnified  Party in  investigating  or  defending  against  any  such  Indemnity
        Proceeding  shall vitiate or in any way impair the  obligations  and duties of the
        Borrower  hereunder to indemnify and hold harmless  each such  Indemnified  Party;
        provided,  however,  that  (i)  if  the  Borrower  is  required  to  indemnify  an
        Indemnified  Party  pursuant  hereto and (ii) the Borrower  has provided  evidence
        reasonably  satisfactory  to such  Indemnified  Party  that the  Borrower  has the
        financial  wherewithal to reimburse such Indemnified  Party for any amount paid by
        such Indemnified Party with respect to such Indemnity Proceeding, such Indemnified
        Party shall not settle or compromise  any such  Indemnity  Proceeding  without the
        prior written  consent of the Borrower  (which  consent shall not be  unreasonably
        withheld or delayed).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If and to the extent
        that the obligations of the Borrower under this Section are  unenforceable for any
        reason, the Borrower hereby agrees to make the maximum contribution to the payment
        and satisfaction of such obligations which is permissible under Applicable Law.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The    Borrower&#146;s
        obligations under this Section shall survive any termination of this Agreement and
        the other Loan Documents and the payment in full in cash of the  Obligations,  and
        are in addition to, and not in substitution of, any other of their obligations set
        forth in this Agreement or any other Loan Document to which it is a party.
        <BR><BR></FONT></P></TD></TR>

<!--12.10 Termination; Survival-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.10.&nbsp;&nbsp;&nbsp;&nbsp;Termination; Survival.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At  such  time  as (a)
        all of the  Commitments  have been  terminated,  (b) all  Letters  of Credit  have
        terminated,  (c) none of the Lenders nor the  Swingline  Lender is  obligated  any
        longer under this Agreement to make any Loans and (d) all Obligations  (other than
        obligations  which survive as provided in the following  sentence)  have been paid
        and satisfied in full,  this Agreement shall  terminate.  The indemnities to which
        the Agent,  the Lenders and the Swingline Lender are entitled under the provisions
        of Sections 3.12.,  4.1., 4.4., 11.7.,  12.2. and 12.9. and any other provision of
        this Agreement and the other Loan Documents,  and the provisions of Section 12.4.,
        shall  continue in full force and effect and shall protect the Agent,  the Lenders
        and the Swingline Lender (i) notwithstanding any termination of this Agreement, or
        of the other Loan Documents, against events arising after such termination as well
        as before and (ii) at all times after any such party  ceases to be a party to this
        Agreement with respect to all matters and events  existing on or prior to the date
        such party ceased to be a party to this Agreement.
        <BR><BR></FONT></P></TD></TR>

<!--12.11 Severability of Provisions-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.11.&nbsp;&nbsp;&nbsp;&nbsp;Severability of Provisions.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this
        Agreement which is prohibited or unenforceable  in any  jurisdiction  shall, as to
        such  jurisdiction,  be  ineffective  only to the  extent of such  prohibition  or
        unenforceability  without  invalidating  the  remainder  of such  provision or the
        remaining provisions or affecting the validity or enforceability of such provision
        in any other jurisdiction.
        </FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-91-</FONT></TD></TR>
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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.12 GOVERNING LAW-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.12.&nbsp;&nbsp;&nbsp;&nbsp;GOVERNING LAW.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AGREEMENT SHALL
        BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF FLORIDA
        APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<!--12.13 Counterparts-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.13.&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  and
        any amendments,  waivers, consents or supplements may be executed in any number of
        counterparts  and by different  parties hereto in separate  counterparts,  each of
        which when so executed and delivered shall be deemed an original, but all of which
        counterparts together shall constitute but one and the same instrument.
        <BR><BR></FONT></P></TD></TR>

<!--12.14 Obligations with Respect to Loan Parties-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.14.&nbsp;&nbsp;&nbsp;&nbsp;Obligations with Respect to Loan Parties.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the
        Borrower  to direct or  prohibit  the taking of certain  actions by the other Loan
        Parties as  specified  herein shall be absolute and not subject to any defense the
        Borrower may have that the Borrower does not control such Loan Parties.
        <BR><BR></FONT></P></TD></TR>

<!--12.15 Limitation of Liability-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.15.&nbsp;&nbsp;&nbsp;&nbsp;Limitation of Liability.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither  the Agent nor
        any Lender, nor any affiliate,  officer, director, employee, attorney, or agent of
        the Agent or any Lender shall have any liability with respect to, and the Borrower
        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
        the Borrower in  connection  with,  arising out of, or in any way related to, this
        Agreement  or  any of  the  other  Loan  Documents,  or  any  of the  transactions
        contemplated  by this Agreement or any of the other Loan  Documents.  The Borrower
        hereby waives,  releases,  and agrees not to sue the Agent or any Lender or any of
        the Agent&#146;s or any Lender&#146;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 Agreement or any of the other
        Loan  Documents,  or any of the  transactions  contemplated  by this  Agreement or
        financed hereby.
        <BR><BR></FONT></P></TD></TR>

<!--12.16 Entire Agreement-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.16.&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement,  the
        Notes,  and the other Loan Documents  referred to herein embody the final,  entire
        agreement  among the parties  hereto and supersede any and all prior  commitments,
        agreements, representations, and understandings, whether written or oral, relating
        to the subject matter hereof and thereof and may not be  contradicted or varied by
        evidence of prior,  contemporaneous,  or subsequent oral agreements or discussions
        of the parties hereto. There are no oral agreements among the parties hereto.
        <BR><BR></FONT></P></TD></TR>

<!--12.17 Construction-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.17.&nbsp;&nbsp;&nbsp;&nbsp;Construction.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Agent,   the
        Borrower  and each  Lender  acknowledge  that each of them has had the  benefit of
        legal  counsel of its own choice and has been  afforded an  opportunity  to review
        this
        </FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-92-</FONT></TD></TR>
</TABLE>


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<!--12.17 continued-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Agreement  and the  other  Loan  Documents  with its legal  counsel  and that this
        Agreement and the other Loan Documents shall be construed as if jointly drafted by
        the Agent, the Borrower and each Lender.
        <BR><BR></FONT></P></TD></TR>

<!--12.18 NO NOVATION-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Section 12.18.&nbsp;&nbsp;&nbsp;&nbsp;NO NOVATION.</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><B>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE  PARTIES  HERETO
        HAVE  ENTERED  INTO THIS  AGREEMENT  SOLELY TO AMEND AND  RESTATE THE TERMS OF THE
        EXISTING  CREDIT  AGREEMENT.  THE  PARTIES DO NOT INTEND  THIS  AGREEMENT  NOR THE
        TRANSACTIONS  CONTEMPLATED  HEREBY TO BE, AND THIS  AGREEMENT AND THE  TRANSACTION
        CONTEMPLATED  HEREBY  SHALL  NOT BE  CONSTRUED  TO BE,  A  NOVATION  OF ANY OF THE
        OBLIGATIONS  OWING BY BORROWER  UNDER OR IN  CONNECTION  WITH THE EXISTING  CREDIT
        AGREEMENT OR ANY OF THE OTHER LOAN  DOCUMENTS  (AS DEFINED IN THE EXISTING  CREDIT
        AGREEMENT).</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures on Following Pages]
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-93-</FONT></TD></TR>
</TABLE>


                                            <!--Page 93-->
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                                        <!--SIGNATURES PAGES-->

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        the parties hereto have caused this Seventh Amended and Restated Credit  Agreement
        to be executed by their authorized officers all as of the day and year first above
        written.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        STATE OF GEORGIA
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COUNTY OF FULTON
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE  ME, a Notary
        Public in and for said County, personally appeared ____________________,  known to
        me to be a person who, as  _______________  of Commercial Net Lease Realty,  Inc.,
        the entity which  executed the foregoing  Credit  Agreement,  signed the same, and
        acknowledged to me that he did so sign said instrument in the name and upon behalf
        of said corporation as an officer of said corporation.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN TESTIMONY WHEREOF,
        I have subscribed my name, and affixed my official seal, as of May 9, 2003.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _____________________________________<BR>
        Notary Public<BR><BR>

        My Commission Expires:<BR><BR>

        [NOTARIAL SEAL]

        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-94-</FONT></TD></TR>
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                                            <!--Page 95-->


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

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</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

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        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        WACHOVIA BANK, NATIONAL ASSOCIATION, as<BR>
        &nbsp;&nbsp;&nbsp;&nbsp;Agent, as a Lender and as Swingline Lender<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $40,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        301 S. College Street, NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Rex A. Rudy<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(704) 383-6506<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(704) 383-6205
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-95-</FONT></TD></TR>
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                                            <!--Page 95-->
                                               <PAGE>
                                            <!--Page 96-->


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

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</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        WELLS FARGO BANK, NATIONAL ASSOCIATION<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Edwin S. Poole III<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $40,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        401 East Jackson Street<BR>
        Suite 1450<BR>
        Tampa, Florida 33602<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Shannon Mack<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(813) 202-7209<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(813) 202-7201
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-96-</FONT></TD></TR>
</TABLE>


                                            <!--Page 96-->
                                               <PAGE>
                                            <!--Page 97-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

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        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        AMSOUTH BANK<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $35,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        111 N. Orange Avenue<BR>
        Suite 1010<BR>
        Orlando, Florida 32801<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Aileen W. Leach<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(407) 246-8923<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(407) 835-3015
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-97-</FONT></TD></TR>
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                                            <!--Page 97-->
                                               <PAGE>
                                            <!--Page 98-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

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        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        SUNTRUST BANK<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Blake K. Thompson<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $30,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        8245 Boone Blvd.<BR>
        Suite 820<BR>
        Vienna, Virginia 22182<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Connie A. Dores<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(703) 902-9166<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(703) 902-9245
        <BR><BR></FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-98-</FONT></TD></TR>
</TABLE>


                                            <!--Page 98-->
                                               <PAGE>
                                            <!--Page 99-->


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

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        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        BANK OF AMERICA, N.A.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $20,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        901 Main Street<BR>
        TX1-492-14-05<BR>
        Dallas, Texas 75202<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Kenneth Smith<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(214) 209-0592<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(214) 290-9673
        <BR><BR></FONT></P></TD></TR>

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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-99-</FONT></TD></TR>
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                                            <!--Page 99-->
                                               <PAGE>
                                            <!--Page 100-->


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMERICA INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $20,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        500 Woodward Ave.<BR>
        MC 3256<BR>
        Detroit, Michigan 48226<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Betsy Branson<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(313) 222-5978<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(313) 222-3697
        <BR><BR></FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-100-</FONT></TD></TR>
</TABLE>


                                            <!--Page 100-->
                                               <PAGE>
                                            <!--Page 101-->


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

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        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        CHEVY CHASE BANK, FSB<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $15,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        7501 Wisconsin Ave.<BR>
        12<SUP>th</SUP> Floor<BR>
        Bethesda, Maryland 20814<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;J. Jordan O&#146;Neill III<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(240) 497-7733<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(240) 497-7714
        <BR><BR></FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-101-</FONT></TD></TR>
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                                            <!--Page 101-->
                                               <PAGE>
                                            <!--Page 102-->

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        PNC BANK, NATIONAL ASSOCIATION<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $15,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        One PNC Plaza<BR>
        Mail Stop P1-POPP-19-2<BR>
        Pittsburgh, Pennsylvania 15222<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Colleen Choff<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(412) 762-6092<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(412) 768-3930
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Next Page]
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-102-</FONT></TD></TR>
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                                            <!--Page 102-->
                                               <PAGE>
                                            <!--Page 103-->


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Signature Page to Seventh Amended and Restated Credit Agreement dated as of <BR>
        May 9, 2003 with Commercial Net Lease Realty, Inc.]</B>
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        CITICORP NORTH AMERICA, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        <B>Commitment Amount:</B><BR><BR>

        $10,000,000<BR><BR>

        <B>Lending Office (all Types of Loans):</B><BR><BR>

        399 Park Avenue<BR>
        16<SUP>th</SUP> Floor 1<BR>
        New York, New York 10043<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Dana Fusti Dugan<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(302) 894-6003<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(212) 994-0849
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>-103-</FONT></TD></TR>
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                                            <!--Page 103-->
                                               <PAGE>
                                         <!--Page EXHIBIT A-->


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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT A <BR><BR>
        FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
        <BR><BR></FONT></P></TD></TR>

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</TABLE>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS   ASSIGNMENT  AND
        ACCEPTANCE AGREEMENT dated as of ___________,  200_ (the &#147;Agreement&#148;) by
        and     among      _________________________      (the      &#147;Assignor&#148;),
        _________________________ (the &#147;Assignee&#148;),  and WACHOVIA BANK, NATIONAL
        ASSOCIATION, as Agent (the &#147;Agent&#148;).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Assignor
        is a Lender under that certain Seventh Amended and Restated Credit Agreement dated
        as of May 9, 2003 (as amended,  restated,  supplemented or otherwise modified from
        time to time, the &#147;Credit Agreement&#148;), by and among Commercial Net Lease
        Realty, Inc. (the &#147;Borrower&#148;),  the financial institutions party thereto
        and their assignees  under Section 12.5.  thereof (the  &#147;Lenders&#148;),  the
        Agent, and the other parties thereto;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,  the Assignor
        desires to assign to the  Assignee,  among other  things,  all or a portion of the
        Assignor&#146;s  Commitment  under  the  Credit  Agreement,  all on the  terms and
        conditions set forth herein; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,   the   Agent
        consents to such assignment on the terms and conditions set forth herein;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE,  for
        good and valuable  consideration,  the receipt and sufficiency of which hereby are
        acknowledged by the parties hereto, the parties hereto hereby agree as follows:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms
        and conditions of this Agreement and in consideration of the payment to be made by
        the Assignee to the Assignor pursuant to Section 2 of this Agreement, effective as
        of  ____________,  200_ (the  &#147;Assignment  Date&#148;),  the Assignor  hereby
        irrevocably  sells,  transfers and assigns to the Assignee,  without  recourse,  a
        $__________ interest (such interest being the &#147;Assigned  Commitment&#148;) in
        and to the Assignor&#146;s  Commitment and all of the other rights and obligations
        of the Assignor under the Credit Agreement,  such  Assignor&#146;s  Revolving Note
        and the other Loan  Documents  (representing  ______% in respect of the  aggregate
        amount  of  all  Lenders&#146;   Commitments),  including  without  limitation,  a
        principal amount of outstanding Revolving Loans equal to $_________ and all voting
        rights of the  Assignor  associated  with the Assigned  Commitment,  all rights to
        receive  interest on such amount of Revolving  Loans and all  commitment and other
        Fees with  respect to the  Assigned  Commitment  and other  rights of the Assignor
        under the  Credit  Agreement  and the other  Loan  Documents  with  respect to the
        Assigned  Commitment,  all as if the  Assignee  were an original  Lender under and
        signatory to the Credit  Agreement  having a Commitment equal to the amount of the
        Assigned  Commitment.  The Assignee,  subject to the terms and conditions  hereof,
        hereby  assumes all  obligations  of the  Assignor  with  respect to the  Assigned
        Commitment as if the Assignee  were an original  Lender under and signatory to the
        Credit  Agreement  having a  Commitment  equal to the Assigned  Commitment,  which
        obligations  shall  include,  but shall not be limited to, the  obligation  of the
        Assignor to make Revolving Loans to the Borrower with
        </FONT></P></TD></TR>

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        respect to the Assigned Commitment, the obligation to pay the Agent amounts due in
        respect of draws under Letters of Credit as required under Section  2.4.(i) of the
        Credit  Agreement and the  obligation  to indemnify the Agent as provided  therein
        (the foregoing enumerated obligations, together with all other similar obligations
        more  particularly set forth in the Credit Agreement and the other Loan Documents,
        collectively,  the &#147;Assigned  Obligations&#148;).  [In addition, the Assignor
        hereby irrevocably sells, transfers and assigns to the Assignee, without recourse,
        a $____________  interest in and to the Assignor&#146;s  Bid Rate Note,  including
        without limitation,  a principal amount of outstanding Bid Rate Loans owing to the
        Assignor  in an  aggregate  amount  equal to  $__________,  all  rights to receive
        interest on such amount of Bid Rate Loans and other rights of the  Assignor  under
        the Credit  Agreement and the other Loan  Documents  with respect to such Bid Rate
        Loans, all as if the Assignee had originally made such amount of Bid Rate Loans to
        the Borrower.  The  obligations  assigned  pursuant to the  immediately  preceding
        sentence shall constitute Assigned Obligations hereunder.] The Assignor shall have
        no  further  duties or  obligations  with  respect  to,  and shall have no further
        interest in, the Assigned  Obligations or the Assigned  Commitment  from and after
        the Assignment Date.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  assignment by the
        Assignor  to the  Assignee  hereunder  is without  recourse to the  Assignor.  The
        Assignee makes and confirms to the Agent, the Assignor,  and the other Lenders all
        of the representations,  warranties and covenants of a Lender under Article XI. of
        the  Credit  Agreement.   Not  in  limitation  of  the  foregoing,   the  Assignee
        acknowledges and agrees that, except as set forth in Section 4 below, the Assignor
        is making no  representations  or  warranties  with  respect to, and the  Assignee
        hereby  releases and discharges the Assignor for any  responsibility  or liability
        for: (i) the present or future  solvency or financial  condition of the  Borrower,
        any  Subsidiary  or any other Loan Party,  (ii) any  representations,  warranties,
        statements or information made or furnished by the Borrower, any Subsidiary or any
        other Loan Party in connection with the Credit  Agreement or otherwise,  (iii) the
        validity,  efficacy,  sufficiency,  or enforceability of the Credit Agreement, any
        other Loan  Document or any other  document or  instrument  executed in connection
        therewith, or the collectibility of the Assigned Obligations, (iv) the perfection,
        priority  or  validity  of any Lien with  respect  to any  collateral  at any time
        securing the Obligations or the Assigned Obligations under the Notes or the Credit
        Agreement  and (v) the  performance  or failure to perform by the  Borrower or any
        other Loan Party of any  obligation  under the Credit  Agreement or any other Loan
        Document to which it is a party.  Further, the Assignee  acknowledges that it has,
        independently  and  without  reliance  upon  the  Agent,  or on any  affiliate  or
        subsidiary  thereof,  the Assignor or any other Lender and based on the  financial
        statements supplied by the Borrower and such other documents and information as it
        has deemed  appropriate,  made its own credit  analysis  and  decision to become a
        Lender under the Credit  Agreement.  The Assignee also  acknowledges that it will,
        independently  and  without  reliance  upon the Agent,  the  Assignor or any other
        Lender and based on such documents and information as it shall deem appropriate at
        the time, continue to make its own credit decisions in taking or not taking action
        under the Credit  Agreement  or any other Loan  Documents or pursuant to any other
        obligation.  Except as expressly provided in the Credit Agreement, the Agent shall
        have no duty or  responsibility  whatsoever,  either  initially or on a continuing
        basis, to provide the Assignee with any credit or other  information  with respect
        to the  Borrower or any other Loan Party or to notify the  Assignee of any Default
        or Event of Default.  The  Assignee has not relied on the Agent as to any legal or
        factual  matter in  connection  therewith or in connection  with the  transactions
        contemplated thereunder.
        </FONT></P></TD></TR>

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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Payment by Assignee</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;In  consideration  of  the  assignment  made  pursuant  to
        Section&#160;1  of this  Agreement,  the Assignee agrees to pay to the Assignor on
        the Assignment Date, an amount equal to $_________  representing (i) the aggregate
        principal  amount  outstanding of the Loans owing to the Assignor under the Credit
        Agreement  and the  other  Loan  Documents  being  assigned  hereby  plus (ii) the
        aggregate amount of payments  previously made by Assignor under Section 2.4.(j) of
        the  Credit  Agreement  which have not been  repaid  and which are being  assigned
        hereby.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Payments   by
        Assignor</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Assignor agrees to pay to the Agent on the Assignment
        Date the  administration  fee, if any, payable under the applicable  provisions of
        the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
        and  Warranties  of  Assignor</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The   Assignor  hereby  represents  and  warrants  to  the
        Assignee that (a) as of the Assignment Date (i) the Assignor is a Lender under the
        Credit  Agreement  having  a  Commitment  under  the  Credit  Agreement  [and  the
        outstanding  principal  balance of Bid Rate Loans owing to the Assignor]  (without
        reduction by any assignments  thereof which have not yet become effective),  equal
        to $____________ [and $__________,  respectively], and that the Assignor is not in
        default of its obligations  under the Credit  Agreement;  and (ii) the outstanding
        balance  of  Revolving  Loans  owing to the  Assignor  (without  reduction  by any
        assignments thereof which have not yet become effective) is $____________; and (b)
        it is the legal and beneficial owner of the Assigned  Commitment which is free and
        clear of any adverse claim created by the Assignor.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Representations,
        Warranties and Agreements of  Assignee</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Assignee (a)  represents  and warrants that it is (i)
        legally  authorized  to  enter  into  this  Agreement,  (ii)  an  &#147;accredited
        investor&#148;  (as such term is used in Regulation D of the  Securities  Act) and
        (iii) an Eligible Assignee; (b) confirms that it has received a copy of the Credit
        Agreement,  together with copies of the most recent financial statements delivered
        pursuant  thereto and such other  documents  and  information  (including  without
        limitation the Loan Documents) as it has deemed appropriate to make its own credit
        analysis and decision to enter into this  Agreement;  (c) appoints and  authorizes
        the Agent to take such action as contractual  representative  on its behalf and to
        exercise such powers under the Loan Documents as are delegated to the Agent by the
        terms thereof together with such powers as are reasonably  incidental thereto; and
        (d)  agrees  that it will  become  a party to and  shall  be  bound by the  Credit
        Agreement  and the other Loan  Documents to which the other Lenders are a party on
        the  Assignment  Date  and  will  perform  in  accordance  therewith  all  of  the
        obligations which are required to be performed by it as a Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Recording and Acknowledgment by the Agent</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Following the execution of this Agreement,  the Assignor
        will  deliver  to the  Agent  (a) a duly  executed  copy  of  this  Agreement  for
        acknowledgment  and recording by the Agent and (b) the  Assignor&#146;s  Revolving
        Note [and Bid Rate Note]. Upon such  acknowledgment and recording,  from and after
        the Assignment  Date, the Agent shall make all payments in respect of the interest
        assigned  hereby  (including  payments  of  principal,  interest,  Fees and  other
        amounts) to the  Assignee.  The Assignor and Assignee  shall make all  appropriate
        adjustments  in  payments  under the Credit  Agreement  for  periods  prior to the
        Assignment Date directly between themselves.
        </FONT></P></TD></TR>

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<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Addresses</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Assignee specifies as its address for notices and its
        Lending Office for all Loans, the offices set forth below:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice Address:
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;_________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        _________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        _________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Telephone No.:_____________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Telecopy No.:______________________<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lending Office:&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;_________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        _________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        _________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Telephone No.:_____________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Telecopy No.:______________________<BR>
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Payment Instructions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;All  payments  to be made  to the  Assignee  under  this
        Agreement by the Assignor,  and all payments to be made to the Assignee  under the
        Credit Agreement,  shall be made as provided in the Credit Agreement in accordance
        with the following instructions:<BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________<BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Effectiveness of Assignment</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement,  and  the  assignment  and  assumption
        contemplated  herein,  shall not be effective until (a) this Agreement is executed
        and delivered by each of the Assignor,  the Assignee,  the Agent,  and if required
        under Section 12.5.(d) of the Credit Agreement,  the Borrower, and (b) the payment
        to the Assignor of the amounts,  if any, owing by the Assignee pursuant to Section
        2 hereof and (c) the  payment to the Agent of the  amounts,  if any,  owing by the
        Assignor pursuant to Section 3 hereof.  Upon recording and  acknowledgment of this
        Agreement by the Agent, from and after the Assignment Date, (i) the Assignee shall
        be a party to the Credit  Agreement and, to the extent provided in this Agreement,
        have the rights  and  obligations  of a Lender  thereunder  and (ii) the  Assignor
        shall, to the extent provided in this Agreement,  relinquish its rights (except as
        otherwise provided in Section 12.10. of the Credit Agreement) and be released from
        its obligations under the Credit Agreement; <U>provided</U>,  <U>however</U>, that
        if the Assignor does not assign its entire interest under the Loan  Documents,  it
        shall  remain a Lender  entitled to all of the  benefits and subject to all of the
        obligations thereunder with respect to its Commitment.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;THIS  AGREEMENT  SHALL BE GOVERNED BY, AND  CONSTRUED IN
        ACCORDANCE  WITH,  THE  LAWS OF THE  STATE  OF  FLORIDA  APPLICABLE  TO  CONTRACTS
        EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  may  be  executed  in  any  number  of
        counterparts each of which, when taken together, shall constitute one and the same
        agreement.
        </FONT></P></TD></TR>

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        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Section   headings  have  been   inserted   herein  for
        convenience only and shall not be construed to be a part hereof.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments; Waivers</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  may not be  amended,  changed,  waived or
        modified  except  by  a  writing  executed  by  the  Assignee  and  the  Assignor;
        <U>provided</U>,  <U>however</U>,  any  amendment,  waiver or consent  which shall
        affect  the  rights  or  duties of the Agent  under  this  Agreement  shall not be
        effective unless signed by the Agent.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  embodies the entire agreement between the
        Assignor and the Assignee with respect to the subject matter hereof and supersedes
        all other prior  arrangements  and  understandings  relating to the subject matter
        hereof.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 15.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Binding Effect</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  shall be binding  upon and inure to the
        benefit  of the  parties  hereto and their  respective  successors  and  permitted
        assigns.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Terms not otherwise  defined herein are used herein with
        the respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>[Include this Section only if Borrower&#146;s consent is required under Section 12.5.(d)</I>
        &nbsp;&nbsp;&nbsp;&nbsp;Section 17.&nbsp;&nbsp;&nbsp;&nbsp;<U>Agreements of the Borrower</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby agrees that the Assignee shall be a
        Lender  under the  Credit  Agreement  having a  Commitment  equal to the  Assigned
        Commitment. The Borrower agrees that the Assignee shall have all of the rights and
        remedies of a Lender under the Credit Agreement and the other Loan Documents as if
        the Assignee were an original Lender under and signatory to the Credit  Agreement,
        including,  but not  limited  to,  the right of a Lender to  receive  payments  of
        principal  and  interest  with  respect to the  Assigned  Obligations,  and to the
        Revolving  Loans made by the  Lenders  after the date  hereof  and to receive  the
        commitment  and other  Fees  payable  to the  Lenders  as  provided  in the Credit
        Agreement.  Further,  the  Assignee  shall  be  entitled  to  the  indemnification
        provisions  from the  Borrower  in favor of the  Lenders as provided in the Credit
        Agreement and the other Loan  Documents.  The Borrower  further  agrees,  upon the
        execution  and  delivery of this  Agreement,  to execute in favor of the  Assignee
        Notes as required by Section 12.5.(d) of the Credit Agreement. Upon receipt by the
        Assignor of the amounts due the Assignor  under Section 2, the Assignor  agrees to
        surrender to the Borrower such Assignor&#146;s Notes.]
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures on Following Pages]
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>A-5</FONT></TD></TR>
</TABLE>


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                                               <PAGE>
                                            <!--Page A-6-->


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN   WITNESS  WHEREOF,
        the parties hereto have duly executed this Assignment and Acceptance  Agreement as
        of the date and year first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        ASSIGNOR:<BR><BR>

        [NAME OF ASSIGNOR]<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR><BR><BR>


        ASSIGNEE:<BR><BR>

        [NAME OF ASSIGNEE]<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Accepted as of the date first written above.<BR><BR>

        AGENT:<BR><BR>

        WACHOVIA BANK, NATIONAL<BR>
        &nbsp;&nbsp; ASSOCIATION, as Agent<BR><BR>


        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures Continued on Following Page]
        <BR><BR></FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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</TABLE>


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                                               <PAGE>
                                            <!--Page A-7-->



<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <I>[Include signature of the Borrower only if required<BR>
        &nbsp;&nbsp;under Section 12.5.(d) of the Credit Agreement]</I><BR>

        Agreed and consented to as of the<BR>
        &nbsp;&nbsp;date first written above.<BR><BR>

        BORROWER:<BR><BR>

        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>


        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

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<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

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</TABLE>


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                                               <PAGE>
                                            <!--EXHIBIT B-->


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT B <BR><BR>
        FORM OF DESIGNATION AGREEMENT
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS       DESIGNATION
        AGREEMENT dated as of ___________,  200__ (the &#147;Agreement&#148;) by and among
        _________________________ (the&#147;Lender&#148;),  _________________________ (the
        &#147;Designated  Lender&#148;) and Wachovia Bank, National Association,  as Agent
        (the &#147;Agent&#148;).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Lender is
        a Lender under that certain Seventh Amended and Restated Credit Agreement dated as
        of May 9, 2003 (as amended, restated, supplemented or otherwise modified from time
        to time,  the  &#147;Credit  Agreement&#148;),  by and among  Commercial Net Lease
        Realty, Inc. (the &#147;Borrower&#148;),  the financial institutions party thereto
        and their assignees  under Section 12.5.  thereof (the  &#147;Lenders&#148;),  the
        Agent, and the other parties thereto;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to
        Section  12.5.(e),  the Lender desires to designate the  Designated  Lender as its
        &#147;Designated Lender&#148; under and as defined in the Credit Agreement; and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,  the  Agent
        consents to such designation on the terms and conditions set forth herein.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE,  for
        good and valuable  consideration,  the receipt and sufficiency of which hereby are
        acknowledged by the parties hereto, the parties hereto hereby agree as follows:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Designation</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of this Agreement, the
        Lender hereby designates the Designated  Lender,  and the Designated Lender hereby
        accepts such designation,  to have a right to make Bid Rate Loans on behalf of the
        Lender  pursuant to Section 2.2. of the Credit  Agreement.  Any  assignment by the
        Lender to the  Designated  Lender of rights to make a Bid Rate Loan  shall only be
        effective at the time such Bid Rate Loan is funded by the Designated  Lender.  The
        Designated Lender,  subject to the terms and conditions  hereof,  hereby agrees to
        make such accepted Bid Rate Loans and to perform such other  obligations as may be
        required of it as a Designated Lender under the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Lender Not Discharged</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding  the designation of the Designated  Lender
        hereunder, the Lender shall be and remain obligated to the Borrower, the Agent and
        the  Lenders for each and every of the  obligations  of the Lender and its related
        Designated  Lender  with  respect  to the  Credit  Agreement  and the  other  Loan
        Documents,  including,  without limitation, any indemnification  obligations under
        Section  11.7.  of the  Credit  Agreement  and any sums  otherwise  payable to the
        Borrower by the Designated Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>No Representation by Lender</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Lender makes no representation or warranty and, except
        as set forth in  Section  8 below,  assumes  no  responsibility  pursuant  to this
        Agreement with respect to (a) any statements,  warranties or representations  made
        in or in connection with any Loan Document or the execution,  legality,  validity,
        enforceability,  genuineness,  sufficiency  or value of any Loan  Document  or any
        other instrument and document
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>B-1</FONT></TD></TR>
</TABLE>


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                                               <PAGE>
                                            <!--Page B-2-->

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        furnished  pursuant thereto and (b) the financial  condition of the Borrower,  any
        Subsidiary  or any  other  Loan  Party or the  performance  or  observance  by the
        Borrower or any other Loan Party of any of its  respective  obligations  under any
        Loan Document to which it is a party or any other instrument or document furnished
        pursuant thereto.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Representations and Covenants of Designated Lender</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Designated Lender makes and confirms to the Agent, the
        Lender, and the other Lenders all of the representations, warranties and covenants
        of a Lender under  Article XI. of the Credit  Agreement.  Not in limitation of the
        foregoing,  the  Designated  Lender (a)  represents  and  warrants  that it (i) is
        legally  authorized  to enter  into this  Agreement;  (ii) is an  &#147;accredited
        investor&#148;  (as such term is used in Regulation D of the  Securities  Act) and
        (iii) meets the requirements of a &#147;Designated  Lender&#148;  contained in the
        definition of such term  contained in the Credit  Agreement;  (b) confirms that it
        has  received a copy of the Credit  Agreement,  together  with  copies of the most
        recent financial  statements  delivered  pursuant thereto and such other documents
        and information (including without limitation the Loan Documents) as it has deemed
        appropriate  to make its own  credit  analysis  and  decision  to enter  into this
        Agreement;  (c) confirms that it has,  independently and without reliance upon the
        Agent,  or on any affiliate  thereof,  the Lender or any other Lender and based on
        such financial  statements and such other documents and information,  made its own
        credit  analysis  and  decision  to become a  Designated  Lender  under the Credit
        Agreement;  (d)  appoints  and  authorizes  the  Agent  to  take  such  action  as
        contractual  representative  on its behalf and to exercise  such powers  under the
        Loan  Documents as are delegated to the Agent by the terms  thereof  together with
        such  powers as are  reasonably  incidental  thereto;  and (e) agrees that it will
        become a party to and  shall be bound by the  Credit  Agreement,  the  other  Loan
        Documents to which the other Lenders are a party on the Effective Date (as defined
        below) and will perform in accordance  therewith all of the obligations  which are
        required to be performed by it as a Designated  Lender. The Designated Lender also
        acknowledges that it will,  independently and without reliance upon the Agent, the
        Lender or any other Lender and based on such documents and information as it shall
        deem appropriate at the time,  continue to make its own credit decisions in taking
        or not taking  action  under the Credit  Agreement  or any Note or pursuant to any
        other  obligation.  The Designated  Lender  acknowledges and agrees that except as
        expressly  required  under the Credit  Agreement,  the Agent shall have no duty or
        responsibility  whatsoever,  either initially or on a continuing basis, to provide
        the  Designated  Lender with any credit or other  information  with respect to the
        Borrower,  any  Subsidiary  or any other Loan  Party or to notify  the  Designated
        Lender of any Default or Event of Default.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Appointment of Lender as Attorney-In-Fact</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Designated  Lender hereby  appoints the Lender as the
        Designated  Lender&#146;s agent and attorney-in-fact,  and grants to the Lender an
        irrevocable power of attorney,  to receive any and all payments to be made for the
        benefit of the  Designated  Lender  under the  Credit  Agreement,  to deliver  and
        receive all notices and other  communications under the Credit Agreement and other
        Loan Documents and to exercise on the Designated  Lender&#146;s  behalf all rights
        to vote and to grant and make  approvals,  waivers,  consents of  amendments to or
        under the Credit Agreement or other Loan Documents.  Any document  executed by the
        Lender on the  Designated  Lender&#146;s  behalf  in  connection  with the  Credit
        Agreement or other Loan Documents shall be binding on the Designated Lender.  Each
        Borrower,  each Agent and each of the Lenders may rely on and are beneficiaries of
        the preceding provisions.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>B-2</FONT></TD></TR>
</TABLE>


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                                               <PAGE>
                                            <!--Page B-3-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Acceptance by the Agent</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Following the execution of this  Agreement by the Lender
        and the  Designated  Lender,  the  Lender  will (i)  deliver  to the  Agent a duly
        executed  original of this  Agreement for  acceptance by the Agent and (ii) pay to
        the Agent the fee, if any,  payable under the applicable  provisions of the Credit
        Agreement  whereupon this Agreement shall become  effective as of the date of such
        acceptance  or such other date as may be  specified on the  signature  page hereof
        (the &#147;Effective Date&#148;).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Effect of Designation</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Upon such  acceptance and recording by the Agent,  as of
        the Effective Date, the Designated Lender shall be a party to the Credit Agreement
        with a right to make Bid Rate Loans as a Lender  pursuant  to Section  2.2. of the
        Credit  Agreement  and the rights and  obligations  of a Lender  related  thereto;
        <U>provided</U>,  <U>however</U>, that the Designated Lender shall not be required
        to make payments with respect to such  obligations  except to the extent of excess
        cash  flow of the  Designated  Lender  which is not  otherwise  required  to repay
        obligations   of  the   Designated   Lender   which  are  then  due  and  payable.
        Notwithstanding  the foregoing,  the Lender,  as agent for the Designated  Lender,
        shall be and remain obligated to the Borrowers, the Agent and the Lenders for each
        and every of the obligations of the Designated  Lender and the Lender with respect
        to the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification of Designated Lender</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Lender unconditionally agrees to pay or reimburse the
        Designated Lender and save the Designated Lender harmless against all liabilities,
        obligations,   losses,  damages,  penalties,  actions,  judgments,  suits,  costs,
        expenses or disbursements of any kind or nature whatsoever which may be imposed or
        asserted  by any of the  parties  to the Loan  Documents  against  the  Designated
        Lender,  in its  capacity as such,  in any way  relating to or arising out of this
        Agreement  or any other  Loan  Documents  or any  action  taken or  omitted by the
        Designated  Lender hereunder or thereunder,  provided that the Lender shall not be
        liable  for  any  portion  of  such  liabilities,  obligations,  losses,  damages,
        penalties, actions, judgments, suits, costs, expenses or disbursements if the same
        results from the Designated Lender&#146;s gross negligence or willful misconduct.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;THIS  AGREEMENT  SHALL BE GOVERNED  BY, AND  CONSTRUED  IN
        ACCORDANCE  WITH,  THE  LAWS OF THE  STATE  OF  FLORIDA  APPLICABLE  TO  CONTRACTS
        EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  may  be  executed  in  any  number  of
        counterparts each of which, when taken together, shall constitute one and the same
        agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Section   headings  have  been   inserted   herein  for
        convenience only and shall not be construed to be a part hereof.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments; Waivers</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement may not be amended,  changed,  waived or
        modified except by a writing executed by all parties hereto.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Binding Effect</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Agreement  shall be binding  upon and inure to the
        benefit  of the  parties  hereto and their  respective  successors  and  permitted
        assigns.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>B-3</FONT></TD></TR>
</TABLE>


                                            <!--Page B-3-->
                                               <PAGE>
                                            <!--Page B-4-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Terms  not otherwise  defined  herein are used herein with
        the respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        the parties  hereto have duly executed this  Designation  Agreement as of the date
        and year first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EFFECTIVE DATE:&nbsp;&nbsp;___________________<BR><BR>

        LENDER:<BR><BR>

        [NAME OF LENDER]<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR><BR><BR>

        DESIGNATED LENDER:<BR><BR>

        [NAME OF DESIGNATED LENDER]<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Accepted as of the date first written above.<BR><BR>

        AGENT:<BR><BR>

        WACHOVIA BANK, NATIONAL<BR>
        &nbsp;&nbsp; ASSOCIATION, as Agent<BR><BR>


        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>B-4</FONT></TD></TR>
</TABLE>


                                            <!--Page B-4-->
                                               <PAGE>
                                            <!--EXHIBIT C-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT C <BR><BR>
        FORM OF NOTICE OF BORROWING<BR><BR>
        _____________, 200__
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to
        that certain Seventh Amended and Restated Credit Agreement dated as of May 9, 2003
        (as amended,  restated,  supplemented or otherwise modified from time to time, the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  Wachovia Bank,
        National  Association,  as Agent (the  &#147;Agent&#148;),  and the other  parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>1.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Pursuant to Section 2.1.(b) of the Credit Agreement,  the Borrower hereby requests
        that the Lenders make Revolving Loans to the Borrower in an aggregate amount equal
        to $______________________.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>2.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Borrower  requests that such Revolving Loans be made available to the Borrower
        on _______________, 200__.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>3.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Borrower  hereby  requests  that the requested  Revolving  Loans all be of the
        following Type:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Check one box only]</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Loans
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Loans,
        each with an initial Interest Period for a duration of:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>[Check one box only]</B>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;1 week
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;1 month
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;2  months
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;3 months
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>4.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The proceeds of this  borrowing of Revolving  Loans will be used for the following
        purpose: _____________________________________________________________________________<BR>
        _____________________________________________________________________________.
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>C-1</FONT></TD></TR>
</TABLE>


                                            <!--Page C-1-->
                                               <PAGE>
                                            <!--Page C-2-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>5.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Borrower  requests that the proceeds of this  borrowing of Revolving  Loans be
        made available to the Borrower by ____________________________.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        certifies  to the Agent and the  Lenders  that as of the date hereof and as of the
        date of the  making of the  requested  Revolving  Loans and  after  giving  effect
        thereto,  (a) no Default or Event of Default  exists or shall  exist,  and (b) 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 are and shall be
        true and  correct  in all  material  respects,  except  to the  extent  that  such
        representations  and  warranties  expressly  relate  solely to an earlier date (in
        which case such representations and warranties were true and accurate on and as of
        such  earlier  date).  In addition,  the  Borrower  certifies to the Agent and the
        Lenders  that all  conditions  to the  making  of the  requested  Revolving  Loans
        contained in Article V. of the Credit  Agreement  will have been  satisfied at the
        time such Revolving Loans are made.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  notice  of  the
        requested  borrowing of Revolving  Loans was previously  given by telephone,  this
        notice is to be  considered  the written  confirmation  of such  telephone  notice
        required by Section 2.1.(b) of the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN   WITNESS  WHEREOF,
        the undersigned has duly executed and delivered this Notice of Borrowing as of the
        date first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>C-2</FONT></TD></TR>
</TABLE>


                                            <!--Page C-2-->
                                               <PAGE>
                                            <!--EXHIBIT D-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT D <BR><BR>
        FORM OF NOTICE OF CONTINUATION<BR><BR>
        _____________, 200__
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to
        that certain Seventh Amended and Restated Credit Agreement dated as of May 9, 2003
        (as amended,  restated,  supplemented or otherwise modified from time to time, the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  Wachovia Bank,
        National  Association,  as Agent (the  &#147;Agent&#148;),  and the other  parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant   to  Section
        2.9. of the Credit  Agreement,  the Borrower  hereby  requests a Continuation of a
        borrowing of Loans under the Credit  Agreement,  and in that connection sets forth
        below the information relating to such Continuation as required by such Section of
        the Credit Agreement:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>1.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The proposed date of such Continuation is ____________, 200__.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>2.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The aggregate  principal amount of Loans subject to the requested  Continuation is
        $__________________   and  was  originally   borrowed  by  the  Borrower  on
        ____________, 200__.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>3.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The  portion  of  such   principal   amount  subject  to  such   Continuation   is
        $_______________________.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>4.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The current  Interest  Period for each of the Loans  subject to such  Continuation
        ends on ________, 200_.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>5.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The duration of the new Interest  Period for each of such Loans or portion thereof
        subject to such Continuation is:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>[Check one box only]</B>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;1 week
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;1 month
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;2  months
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;3 months
        <BR><BR>
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>D-1</FONT></TD></TR>
</TABLE>


                                            <!--Page D-1-->
                                               <PAGE>
                                            <!--Page D-2-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        certifies  to the  Agent and the  Lenders  that as of the date  hereof,  as of the
        proposed  date of the  requested  Continuation,  and after  giving  effect to such
        Continuation, no Default or Event of Default exists or will exist.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  notice  of  the
        requested  Continuation  was given  previously by telephone,  this notice is to be
        considered the written  confirmation of such telephone  notice required by Section
        2.9. of the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN   WITNESS  WHEREOF,
        the  undersigned has duly executed and delivered this Notice of Continuation as of
        the date first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>D-2</FONT></TD></TR>
</TABLE>


                                            <!--Page D-2-->
                                               <PAGE>
                                            <!--EXHIBIT E-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT E <BR><BR>
        FORM OF NOTICE OF CONVERSION<BR><BR>
        _____________, 200__
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to
        that certain Seventh Amended and Restated Credit Agreement dated as of May 9, 2003
        (as amended,  restated,  supplemented or otherwise modified from time to time, the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  Wachovia Bank,
        National  Association,  as Agent (the  &#147;Agent&#148;),  and the other  parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Section
        2.10. of the Credit  Agreement,  the Borrower  hereby  requests a  Conversion  of a
        borrowing  of Loans of one Type  into  Loans of  another  Type  under  the  Credit
        Agreement,  and in that connection  sets forth below the  information  relating to
        such Conversion as required by such Section of the Credit Agreement:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>1.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The proposed date of such Conversion is ____________, 200__.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>2.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Loans to be Converted pursuant hereto are <B>currently</B>:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>[Check one box only]</B>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;
        Base Rate Loans
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Loans
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>3.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The aggregate  principal  amount of Loans  subject to the requested  Conversion is
        $__________________   and  was   originally   borrowed   by  the   Borrower  on
        ____________, 200__.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>4.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The  portion  of  such   principal   amount  subject  to  such   Continuation   is
        $_______________________.
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>E-1</FONT></TD></TR>
</TABLE>


                                            <!--Page E-1-->
                                               <PAGE>
                                            <!--Page E-2-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>5.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The amount of such Loans to be so Converted  is to be converted  into Loans of the
        following Type: <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>[Check one box only]</B>
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;Base Rate Loans
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;LIBOR Loans,
        each with an initial Interest Period for a duration of:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>[Check one box only]</B>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#129;&nbsp;&nbsp;&nbsp;&nbsp;1 week
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;1 month
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;2  months
        <BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &#129;&nbsp;&nbsp;&nbsp;&nbsp;3 months
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The   Borrower  hereby
        certifies  to the Agent and the  Lenders  that as of the date hereof and as of the
        date of the requested  Conversion and after giving effect thereto,  (a) no Default
        or  Event  of  Default  exists  or will  exist,  and (b) 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 are and shall be true and correct
        in all  material  respects,  except to the extent  that such  representations  and
        warranties  expressly  relate  solely  to an  earlier  date (in  which  case  such
        representations  and  warranties  were true and accurate on and as of such earlier
        date).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  notice  of  the
        requested  Conversion  was given  previously by telephone,  this notice is to be
        considered the written  confirmation of such telephone  notice required by Section
        2.10. of the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN   WITNESS  WHEREOF,
        the undersigned has duly executed and delivered this Notice of Conversion as of the
        date first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>E-2</FONT></TD></TR>
</TABLE>


                                            <!--Page E-2-->
                                               <PAGE>
                                            <!--EXHIBIT F-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT F <BR><BR>
        FORM OF NOTICE OF SWINGLINE BORROWING<BR><BR>
        _____________, 200__
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to
        that certain Seventh Amended and Restated Credit Agreement dated as of May 9, 2003
        (as amended,  restated,  supplemented or otherwise modified from time to time, the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  Wachovia Bank,
        National  Association,  as Agent (the  &#147;Agent&#148;),  and the other  parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>1.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Pursuant to Section 2.3.(b) of the Credit Agreement,  the Borrower hereby requests
        that the Swingline Lender make a Swingline Loan to the Borrower in an amount equal
        to $___________________.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>2.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Borrower  requests that such  Swingline Loan be made available to the Borrower
        on __________, 200_.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>3.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The  proceeds  of this  Swingline  Loan  will be used for the  following  purpose:
        _______________________<BR>
        __________________________________________________________________________.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>4.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Borrower  requests that the proceeds of such  Swingline Loan be made available
        to the Borrower by __________________________________________________.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        certifies to the Agent,  the Swingline  Lender and the Lenders that as of the date
        hereof,  as of the date of the making of the requested  Swingline  Loan, and after
        making  such  Swingline  Loan,  (a) no Default or Event of Default  exists or will
        exist,  and (b) 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 are and shall be true and correct in all  material  respects,  except to the
        extent that such  representations  and  warranties  expressly  relate solely to an
        earlier  date (in which case such  representations  and  warranties  were true and
        accurate on and as of such earlier date). In addition,  the Borrower  certifies to
        the Agent and the  Lenders  that all  conditions  to the  making of the  requested
        Swingline Loan contained in
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>F-1</FONT></TD></TR>
</TABLE>


                                            <!--Page F-1-->
                                               <PAGE>
                                            <!--Page F-2-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Article  V. of the  Credit  Agreement  will have been  satisfied  at the time such
        Swingline Loan is made.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If  notice  of  the
        requested borrowing of this Swingline Loan was previously given by telephone, this
        notice is to be  considered  the written  confirmation  of such  telephone  notice
        required by Section 2.3.(b) of the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN   WITNESS  WHEREOF,
        the undersigned has duly executed and delivered this Notice of Swingline Borrowing
        as of the date first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>F-2</FONT></TD></TR>
</TABLE>


                                            <!--Page F-2-->
                                               <PAGE>
                                            <!--EXHIBIT G-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT G <BR><BR>
        FORM OF SWINGLINE NOTE<BR><BR>
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--4 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=75%></TD>
        <TD WIDTH=10%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>$10,000,000
        </FONT></P></TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>May 9, 2003
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE  RECEIVED,
        the undersigned, COMMERCIAL NET LEASE REALTY, INC., a corporation formed under the
        laws of the State of Maryland (the  &#147;Borrower&#148;),  hereby promises to pay
        to  the  order  of  WACHOVIA  BANK,  NATIONAL   ASSOCIATION  (the  &#147;Swingline
        Lender&#148;)  to its address at One Wachovia  Center,  301 South College  Street,
        Charlotte,  North Carolina  28288, or at such other address as may be specified in
        writing by the Swingline Lender to the Borrower,  the principal sum of TEN MILLION
        AND  NO/100  DOLLARS  ($10,000,000)  (or such  lesser  amount  as shall  equal the
        aggregate  unpaid principal amount of Swingline Loans made by the Swingline Lender
        to the Borrower  under the Credit  Agreement),  on the dates and in the  principal
        amounts  provided  in the  Credit  Agreement,  and to pay  interest  on the unpaid
        principal  amount owing  hereunder,  at the rates and on the dates provided in the
        Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  date,  amount  of
        each Swingline  Loan,  and each payment made on account of the principal  thereof,
        shall be recorded by the Swingline  Lender on its books and, prior to any transfer
        of this Note,  endorsed by the Swingline Lender on the schedule attached hereto or
        any continuation thereof, <U>provided</U> that the failure of the Swingline Lender
        to make any such  recordation or endorsement  shall not affect the  obligations of
        the  Borrower  to make a payment  when due of any  amount  owing  under the Credit
        Agreement or hereunder in respect of the Swingline Loans.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This  Note  is  the
        Swingline Note referred to in the Seventh  Amended and Restated  Credit  Agreement
        dated as of May 9, 2003 (as amended, restated,  supplemented or otherwise modified
        from time to time, the &#147;Credit  Agreement&#148;),  by and among the Borrower,
        the financial  institutions  party thereto and their assignees under Section 12.5.
        thereof (the &#147;Lenders&#148;),  Wachovia Bank, National Association, as Agent,
        and the other parties thereto,  and evidences Swingline Loans made to the Borrower
        thereunder.  Terms used but not otherwise defined in this Note have the respective
        meanings assigned to them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Credit  Agreement
        provides for the  acceleration of the maturity of this Note upon the occurrence of
        certain  events  and for  prepayments  of  Swingline  Loans  upon  the  terms  and
        conditions specified therein.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS  NOTE  SHALL BE
        GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE LAWS OF THE STATE OF FLORIDA
        APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        waives presentment for payment,  demand,  notice of demand, notice of non-payment,
        protest, notice of protest and all other similar notices.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>G-1</FONT></TD></TR>
</TABLE>


                                            <!--Page G-1-->
                                               <PAGE>
                                            <!--Page G-2-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time   is  of   the
        essence for this Note.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        the  undersigned  has executed and delivered  this Swingline Note under seal as of
        the date first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        STATE OF GEORGIA
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COUNTY OF FULTON
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE  ME, a Notary
        Public in and for said County, personally appeared ____________________,  known to
        me to be a person who, as  _______________  of Commercial Net Lease Realty,  Inc.,
        the entity which  executed the foregoing  Swingline Note,  signed the same, and
        acknowledged to me that he did so sign said instrument in the name and upon behalf
        of said corporation as an officer of said corporation.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN TESTIMONY WHEREOF,
        I have subscribed my name, and affixed my official seal, as of May 9, 2003.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _____________________________________<BR>
        Notary Public<BR><BR>

        My Commission Expires:<BR><BR>

        [NOTARIAL SEAL]

        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>G-2</FONT></TD></TR>
</TABLE>


                                            <!--Page G-2-->
                                               <PAGE>
                                            <!--Page G-3-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        SCHEDULE OF SWINGLINE LOANS<BR><BR>
        </FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This   Note  evidences
        Swingline Loans made under the within-described  Credit Agreement to the Borrower,
        on the dates and in the principal amounts set forth below, subject to the payments
        and prepayments of principal set forth below:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--11 COLUMNS-->
        <TD WIDTH=12%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=7%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><U>Date of Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Principal<BR>Amount of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Amount Paid<BR><U>or Prepaid</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Unpaid<BR>Principal<BR><U>Amount</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Notation<BR><U>Made By</U></B></FONT></P></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>G-3</FONT></TD></TR>
</TABLE>


                                            <!--Page G-3-->
                                               <PAGE>
                                            <!--EXHIBIT H-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT H <BR><BR>
        FORM OF BID RATE QUOTE REQUEST<BR><BR>
         _____________, 200__
        <BR><BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to
        that certain Seventh Amended and Restated Credit Agreement dated as of May 9, 2003
        (as amended,  restated,  supplemented or otherwise modified from time to time, the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  Wachovia Bank,
        National  Association,  as Agent (the  &#147;Agent&#148;),  and the other  parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>1.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The Borrower hereby  requests Bid Rate Quotes for the following  proposed Bid Rate
        Borrowings:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--9 COLUMNS-->
        <TD WIDTH=10%></TD>
        <TD WIDTH=20%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=5%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <U>Borrowing Date</U></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <U>Amount</U><SUP>1</SUP></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <U>Type</U><SUP>2</SUP></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <U>Interest Period</U><SUP>3</SUP></FONT></P></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        ________, 2000__</FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        $__________</FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        __________</FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _______ days</FONT></P></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>2.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Borrower&#146;s Credit Rating, as applicable, as of the date hereof is:
        <BR><BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S&amp;P
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;_________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody&#146;s
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_________<BR><BR>
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _______________________
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>1</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Minimum amount of $10,000,000 or larger multiple of $1,000,000.</B>
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>2</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Insert either Absolute Rate (for Absolute Rate Loan) or LIBOR Margin (for LIBOR Margin Loan).</B>
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>3</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        30, 60 or 90 days after the borrowing date and must end on a Business Day.</B>
        <BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>H-1</FONT></TD></TR>
</TABLE>


                                            <!--Page H-1-->
                                               <PAGE>
                                            <!--Page H-2-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>3.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The  proceeds  of this  Bid Rate borrowing  will be used for the  following  purpose:
        ________________<BR>
        __________________________________________________________________________.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>4.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        After giving effect to the Bid Rate Borrowing requested herein, the total amount of Bid
        Rate Loans outstanding shall be $_________.<SUP>1</SUP>
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        certifies to the Agent and the Lenders that as of the date hereof,  as of the date
        of the making of the  requested  Bid Rate  Loans,  and after  making such Bid Rate
        Loans,  (a) no  Default  or Event of  Default  exists or will  exist,  and (b) 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 are and shall be
        true and  correct  in all  material  respects,  except  to the  extent  that  such
        representations  and  warranties  expressly  relate  solely to an earlier date (in
        which case such representations and warranties were true and accurate on and as of
        such  earlier  date).  In addition,  the  Borrower  certifies to the Agent and the
        Lenders  that all  conditions  to the  making  of the  requested  Bid  Rate  Loans
        contained in Article V. of the Credit  Agreement  will have been  satisfied at the
        time such Bid Rate Loans are made.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        the  undersigned has duly executed and delivered this Bid Rate Quote Request as of
        the date first written above.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _______________________
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>1</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Must not be in excess of one-half of the aggregate amount of all existing Commitments.</B>
        <BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>H-2</FONT></TD></TR>
</TABLE>


                                            <!--Page H-2-->
                                               <PAGE>
                                            <!--EXHIBIT I-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT I <BR><BR>
        FORM OF BID RATE QUOTE<BR><BR>
        _____________, 200__
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference   is   made   to  that
        certain  Seventh  Amended and Restated  Credit  Agreement  dated as of May&#160;9,  2003 (as
        amended,  restated,  supplemented or otherwise  modified from time to time, the &#147;Credit
        Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the &#147;Borrower&#148;),
        the  financial  institutions  party  thereto and their  assignees  under  Section&#160;12.5.
        thereof  (the  &#147;Lenders&#148;),  Wachovia  Bank,  National  Association,  as Agent (the
        &#147;Agent&#148;),  and the other parties thereto.  Capitalized terms used herein,  and not
        otherwise defined herein, have their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In  response to Borrower&#146;s Bid Rate Quote
        Request dated _____________,  200_, the undersigned hereby makes the following Bid
        Rate Quote(s) on the following terms:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--3 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=85%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>1.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Quoting Lender:___________________
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>2.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Person to contact at quoting Lender:_______________________________
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>3.</FONT></P></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        The undersigned offers to make Bid Rate Loan(s) in the following  principal  amount(s),  for
        the following Interest Period(s) and at the following Bid Rate(s):
        <BR><BR></FONT></P></TD></TR></TABLE>


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--11 COLUMNS-->
        <TD WIDTH=7%></TD>
        <TD WIDTH=19%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=1%></TD>
        <TD WIDTH=12%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=2%></TD>
        <TD WIDTH=19%></TD>
        <TD WIDTH=2%></TD>
        <TD WIDTH=2%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Borrowing Date</U></FONT></TD>
        <TD COLSPAN=2></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Amount</U><SUP>1</SUP></FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Type</U><SUP>2</SUP></FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Interest Period</U><SUP>3</SUP></FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Bid Rate</U></FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________, 200__</FONT></TD>
        <TD></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>$</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>_____days</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>______%</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________, 200__</FONT></TD>
        <TD></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>$</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>_____days</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>______%</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________, 200__</FONT></TD>
        <TD></TD>
        <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>$</FONT></TD>
        <TD><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>_____days</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>______%</FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _______________________
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>1</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Minimum amount of $10,000,000 or larger multiple of $1,000,000.</B>
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>2</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Insert either Absolute Rate (for Absolute Rate Loan) or LIBOR Margin (for LIBOR Margin Loan).</B>
        <BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><SUP>3</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        30, 60 or 90 days after the borrowing date and must end on a Business Day.</B>
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>I-1</FONT></TD></TR>

</TABLE>

                                            <!--Page I-1-->
                                               <PAGE>
                                            <!--Page I-2-->

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The        undersigned
        understands and agrees that the offer(s) set forth above,  subject to satisfaction
        of the  applicable  conditions  set  forth in the  Credit  Agreement,  irrevocably
        obligate[s]  the  undersigned  to make the Bid Rate Loan(s) for which any offer(s)
        [is/are] accepted, in whole or in part.
        <BR><BR></FONT></P></TD></TR>
</TABLE>
<BR><BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _____________________________________<BR>
        [Name of Quoting Lender]<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>I-2</FONT></TD></TR>

</TABLE>

                                            <!--Page I-2-->
                                               <PAGE>
                                            <!--EXHIBIT J-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT J <BR><BR>
        FORM OF BID RATE QUOTE ACCEPTANCE<BR><BR>
        _____________, 200__
        <BR><BR></FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference   is   made   to  that
        certain  Seventh  Amended and Restated  Credit  Agreement  dated as of May&#160;9,  2003 (as
        amended,  restated,  supplemented or otherwise  modified from time to time, the &#147;Credit
        Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the &#147;Borrower&#148;),
        the  financial  institutions  party  thereto and their  assignees  under  Section&#160;12.5.
        thereof  (the  &#147;Lenders&#148;),  Wachovia  Bank,  National  Association,  as Agent (the
        &#147;Agent&#148;),  and the other parties thereto.  Capitalized terms used herein,  and not
        otherwise defined herein, have their respective meanings given them in the Credit Agreement.
        <BR><BR>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower   hereby   accepts  the
        following  offer(s) of Bid Rate Quotes to be made available to the Borrower on ____________,
        200___:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--7 COLUMNS-->
        <TD WIDTH=20%></TD>
        <TD WIDTH=20%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=20%></TD>
        <TD WIDTH=5%></TD>
        <TD WIDTH=20%></TD>
        <TD WIDTH=10%></TD></TR>

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Quote Date</U></FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Quoting Lender</U></FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2><U>Amount Accepted</U></FONT></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                __________, 200___</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                ______________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                $______________</FONT></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                __________, 200___</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                ______________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                $______________</FONT></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                __________, 200___</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                ______________</FONT></TD>
        <TD></TD>
        <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
                $______________</FONT></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Borrower hereby  certifies to the Agent
        and the Lenders  that as of the date hereof,  as of the date of the making of the  requested
        Bid Rate  Loans,  and after  making  such Bid Rate  Loans,  (a)&#160;no  Default or Event of
        Default exists or will exist, and (b)&#160;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 are and shall be true and  correct in all  material  respects,  except to the extent
        that such  representations  and  warranties  expressly  relate solely to an earlier date (in
        which case such  representations  and  warranties  were true and  accurate on and as of such
        earlier  date).  In addition,  the Borrower  certifies to the Agent and the Lenders that all
        conditions to the making of the requested Bid Rate Loans contained in Article&#160;V. of the
        Credit Agreement will have been satisfied at the time such Bid Rate Loans are made.
        </FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>J-1</FONT></TD></TR>

</TABLE>

                                            <!--Page J-1-->
                                               <PAGE>
                                            <!--Page J-2-->

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        IN WITNESS  WHEREOF,  the  undersigned  has duly executed and delivered  this Bid Rate Quote
        Acceptance as of the date first written above.</FONT></TD></TR>
</TABLE>

<BR><BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR><BR>

        By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=BOTTOM>
        <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>J-2</FONT></TD></TR>

</TABLE>

                                            <!--Page J-2-->
                                               <PAGE>
                                            <!--EXHIBIT K-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT K <BR><BR>
        FORM OF REVOLVING NOTE<BR><BR>
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--4 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=65%></TD>
        <TD WIDTH=15%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>$______________
        </FONT></P></TD>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>_______, 200__
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE  RECEIVED,
        the undersigned, COMMERCIAL NET LEASE REALTY, INC., a corporation formed under the
        laws of the State of Maryland (the  &#147;Borrower&#148;),  hereby promises to pay
        to the order of ____________________ (the &#147;Lender&#148;), in care of Wachovia
        Bank, National  Association,  as Agent (the  &#147;Agent&#148;)  to Wachovia Bank,
        National  Association,  One Wachovia Center, 301 South College Street,  Charlotte,
        North Carolina  28288,  or at such other address as may be specified in writing by
        the Agent to the  Borrower,  the principal  sum of  ________________  AND ____/100
        DOLLARS ($____________) (or such lesser amount as shall equal the aggregate unpaid
        principal  amount of Revolving  Loans made by the Lender to the Borrower under the
        Credit Agreement (as herein  defined)),  on the dates and in the principal amounts
        provided in the Credit  Agreement,  and to pay  interest  on the unpaid  principal
        amount  owing  hereunder,  at the rates and on the dates  provided  in the  Credit
        Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date,  amount of
        each Revolving  Loan made by the Lender to the Borrower,  and each payment made on
        account of the  principal  thereof,  shall be  recorded by the Lender on its books
        and,  prior to any  transfer of this Note,  endorsed by the Lender on the schedule
        attached hereto or any continuation  thereof,  <U>provided</U> that the failure of
        the  Lender to make any such  recordation  or  endorsement  shall not  affect  the
        obligations  of the  Borrower to make a payment when due of any amount owing under
        the Credit  Agreement or hereunder in respect of the  Revolving  Loans made by the
        Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This  Note is one of
        the  Revolving  Notes  referred to in the  Seventh  Amended  and  Restated  Credit
        Agreement dated as of May 9, 2003 (as amended, restated, supplemented or otherwise
        modified from time to time, the  &#147;Credit  Agreement&#148;),  by and among the
        Borrower,  the  financial  institutions  party thereto and their  assignees  under
        Section 12.5. thereof (the &#147;Lenders&#148;),  the Agent, and the other parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Credit Agreement
        provides for the  acceleration of the maturity of this Note upon the occurrence of
        certain  events  and for  prepayments  of Loans  upon  the  terms  and  conditions
        specified therein.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as  permitted
        by Section 12.5.(d) of the Credit Agreement,  this Note may not be assigned by the
        Lender to any other Person.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>K-1</FONT></TD></TR>
</TABLE>


                                            <!--Page K-1-->
                                               <PAGE>
                                            <!--Page K-2-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS  NOTE  SHALL BE
        GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE LAWS OF THE STATE OF FLORIDA
        APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        waives presentment for payment,  demand,  notice of demand, notice of non-payment,
        protest, notice of protest and all other similar notices.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time   is  of   the
        essence for this Note.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        the  undersigned  has executed and delivered  this Revolving Note under seal as of
        the date first written above.
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        STATE OF GEORGIA
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COUNTY OF FULTON
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE  ME, a Notary
        Public in and for said County, personally appeared ____________________,  known to
        me to be a person who, as  _______________  of Commercial Net Lease Realty,  Inc.,
        the entity which  executed the foregoing  Revolving Note,  signed the same, and
        acknowledged to me that he did so sign said instrument in the name and upon behalf
        of said corporation as an officer of said corporation.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN TESTIMONY WHEREOF,
        I have subscribed my name, and affixed my official seal, as of _________, 200__.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _____________________________________<BR>
        Notary Public<BR><BR>

        My Commission Expires:<BR><BR>

        [NOTARIAL SEAL]

        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>K-2</FONT></TD></TR>
</TABLE>


                                            <!--Page K-2-->
                                               <PAGE>
                                            <!--Page K-3-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        SCHEDULE OF BID RATE LOANS<BR><BR>
        </FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This   Note  evidences
        Bid Rate Loans made under the  within-described  Credit Agreement to the Borrower,
        on the dates, in the principal amounts, bearing interest at the rates and maturing
        on the dates set forth below, subject to the payments and prepayments of principal
        set forth below:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--15 COLUMNS-->
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=3%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Date of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Principal<BR>Amount of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Interest<BR><U>Rate</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Maturity<BR>Date of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Amount<BR>Paid or<BR><U>Prepaid</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Unpaid<BR>Principal<BR><U>Amount</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Notation<BR><U>Made By</U></B></FONT></P></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>K-3</FONT></TD></TR>
</TABLE>


                                            <!--Page K-3-->
                                               <PAGE>
                                            <!--EXHIBIT L-->





<!--EXHIBIT K-->

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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT L <BR><BR>
        FORM OF BID RATE NOTE<BR><BR>
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--4 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=15%></TD>
        <TD WIDTH=65%></TD>
        <TD WIDTH=15%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=4><P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>__________, 200__
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE  RECEIVED,
        the undersigned, COMMERCIAL NET LEASE REALTY, INC., a corporation formed under the
        laws of the State of Maryland (the  &#147;Borrower&#148;),  hereby promises to pay
        to the order of  ________________  (the  &#147;Lender&#148;),  in care of Wachovia
        Bank, National  Association,  as Agent (the  &#147;Agent&#148;)  to Wachovia Bank,
        National  Association,  One Wachovia Center, 301 South College Street,  Charlotte,
        North Carolina  28288,  or at such other address as may be specified in writing by
        the Agent to the Borrower, the aggregate unpaid principal amount of Bid Rate Loans
        made by the Lender to the Borrower under the Credit Agreement, on the dates and in
        the principal amounts provided in the Credit Agreement, and to pay interest on the
        unpaid  principal  amount of each such Bid Rate Loan,  at such office at the rates
        and on the dates provided in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  date,  amount,
        interest  rate and  maturity  date of each Bid Rate Loan made by the Lender to the
        Borrower,  and each payment  made on account of the  principal  thereof,  shall be
        recorded  by the  Lender on its books  and,  prior to any  transfer  of this Note,
        endorsed  by the  Lender  on the  schedule  attached  hereto  or any  continuation
        thereof,  <U>provided</U>  that  the  failure  of the  Lender  to  make  any  such
        recordation  or  endorsement  shall not affect the  obligations of the Borrower to
        make a  payment  when due of any  amount  owing  under  the  Credit  Agreement  or
        hereunder in respect of the Bid Rate Loans made by the Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This  Note is one of
        the Bid  Rate  Notes  referred  to in the  Seventh  Amended  and  Restated  Credit
        Agreement dated as of May 9, 2003 (as amended, restated, supplemented or otherwise
        modified from time to time, the  &#147;Credit  Agreement&#148;),  by and among the
        Borrower,  the  financial  institutions  party thereto and their  assignees  under
        Section 12.5. thereof (the &#147;Lenders&#148;),  the Agent, and the other parties
        thereto,  and evidences Bid Rate Loans made by the Lender  thereunder.  Terms used
        but not otherwise  defined in this Note have the respective  meanings  assigned to
        them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Credit Agreement
        provides for the  acceleration of the maturity of this Note upon the occurrence of
        certain events and for prepayments of Bid Rate Loans upon the terms and conditions
        specified therein.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as  permitted
        by Section 12.5. of the Credit Agreement,  this Note may not be assigned by the
        Lender to any other Person.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS  NOTE  SHALL BE
        GOVERNED BY, AND  CONSTRUED IN ACCORDANCE  WITH,  THE LAWS OF THE STATE OF FLORIDA
        APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower  hereby
        waives presentment for payment,  demand,  notice of demand, notice of non-payment,
        protest, notice of protest and all other similar notices.
        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>L-1</FONT></TD></TR>
</TABLE>


                                            <!--Page L-1-->
                                               <PAGE>
                                            <!--Page L-2-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time   is  of   the
        essence for this Note.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        the  undersigned  has executed and delivered  this Bid Rate Note under seal as of
        the date first written above.
        </FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COMMERCIAL NET LEASE REALTY, INC.<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        STATE OF GEORGIA
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        COUNTY OF FULTON
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE  ME, a Notary
        Public in and for said County, personally appeared ____________________,  known to
        me to be a person who, as  _______________  of Commercial Net Lease Realty,  Inc.,
        the entity which  executed the foregoing Bid Rate Note,  signed the same, and
        acknowledged to me that he did so sign said instrument in the name and upon behalf
        of said corporation as an officer of said corporation.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN TESTIMONY WHEREOF,
        I have subscribed my name, and affixed my official seal, as of _________, 200__.
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        _____________________________________<BR>
        Notary Public<BR><BR>

        My Commission Expires:<BR><BR>

        [NOTARIAL SEAL]

        </FONT></P></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>L-2</FONT></TD></TR>
</TABLE>


                                            <!--Page L-2-->
                                               <PAGE>
                                            <!--Page L-3-->


<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        SCHEDULE OF BID RATE LOANS<BR><BR>
        </FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This   Note  evidences
        Bid Rate Loans made under the  within-described  Credit Agreement to the Borrower,
        on the dates, in the principal amounts, bearing interest at the rates and maturing
        on the dates set forth below, subject to the payments and prepayments of principal
        set forth below:
        <BR><BR></FONT></P></TD></TR>

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--15 COLUMNS-->
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=4%></TD>
        <TD WIDTH=10%></TD>
        <TD WIDTH=3%></TD></TR>

<TR VALIGN=BOTTOM>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Date of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Principal<BR>Amount of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Interest<BR><U>Rate</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Maturity<BR>Date of<BR><U>Loan</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Amount<BR>Paid or<BR><U>Prepaid</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Unpaid<BR>Principal<BR><U>Amount</U></B></FONT></P></TD>
        <TD></TD>
        <TD><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B>Notation<BR><U>Made By</U></B></FONT></P></TD>
        <TD></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

</TABLE>

<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0  WIDTH=680>

<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->
<TR><TD>&nbsp;</TD></TR><!--BLANK LINE-->

<TR VALIGN=TOP>
        <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=-2>L-3</FONT></TD></TR>
</TABLE>


                                            <!--Page L-3-->
                                               <PAGE>
                                            <!--EXHIBIT M-->


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<TR VALIGN=BOTTOM><!--2 COLUMNS-->
        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT M<BR><BR>
        FORM OF OPINION OF COUNSEL<BR><BR>
        [To be Attached]
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT N <BR><BR>
        FORM OF COMPLIANCE CERTIFICATE<BR><BR>
         _____________, 200__
        <BR><BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Wachovia Bank, National Association, as Agent<BR>
        One Wachovia Center<BR>
        301 S. College St., NC0172<BR>
        Charlotte, North Carolina 28288<BR>
        Attention:&nbsp;&nbsp;Rex E. Rudy<BR><BR>

        Each of the Lenders Party to the Credit<BR>
        &nbsp;&nbsp;Agreement referred to below<BR><BR>

        Ladies and Gentlemen:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to
        that certain Seventh Amended and Restated Credit Agreement dated as of May 9, 2003
        (as amended,  restated,  supplemented or otherwise modified from time to time, the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  Wachovia Bank,
        National  Association,  as Agent  (the  &#147;Agent&#148;)  and the other  parties
        thereto.  Capitalized terms used herein,  and not otherwise  defined herein,  have
        their respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant  to Section
        8.3. of the Credit  Agreement,  the undersigned  hereby certifies to the Agent and
        the Lenders as follows:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  undersigned is the  _____________________
        of the Borrower.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  undersigned  has  examined  the books and
        records  of  the  Borrower  and  has  conducted   such  other   examinations   and
        investigations as are reasonably necessary to provide this Compliance Certificate.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No  Default or Event of Default  exists <I>[if
        such is not the case,  specify  such  Default or Event of Default  and its nature,
        when it  occurred  and whether it is  continuing  and the steps being taken by the
        Borrower with respect to such event, condition or failure]</I>.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  representations  and warranties made or
        deemed made by the Borrower  and the other Loan  Parties in the Loan  Documents to
        which any is a party,  are true and correct in all material  respects on and as of
        the date hereof  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 accurate on and as of such earlier date).
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attached hereto as Schedule 1 are reasonably
        detailed   calculations   establishing   whether  or  not  the  Borrower  and  its
        Subsidiaries  were in compliance  with the covenants  contained in Sections  9.1.,
        9.2. and 9.4. of the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN   WITNESS  WHEREOF,
        the undersigned has executed this certificate as of the date first above written.
        <BR><BR></FONT></P></TD></TR>
</TABLE>

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        <TD WIDTH=45%></TD>
        <TD WIDTH=55%></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        ________________________________<BR>

        Name:___________________________<BR>

        Title:____________________________
        <BR><BR></FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        <B><U>Schedule 1</U><BR><BR>
        [Calculations to be Attached]</B><BR><BR>
        </FONT></P></TD></TR>

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                                            <!--EXHIBIT O-->


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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        EXHIBIT O<BR><BR>
        FORM OF GUARANTY
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS GUARANTY dated as
        of May 9, 2003,  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  &#147;Guarantor&#148;  and  collectively,
        the  &#147;Guarantors&#148;)  in favor of (a) WACHOVIA BANK, NATIONAL ASSOCIATION,
        in its  capacity  as Agent  (the  &#147;Agent&#148;)  for the  Lenders  under that
        certain Seventh Amended and Restated Credit  Agreement dated as of May 9, 2003 (as
        amended,  restated,  supplemented  or otherwise  modified  from time to time,  the
        &#147;Credit Agreement&#148;), by and among Commercial Net Lease Realty, Inc. (the
        &#147;Borrower&#148;),   the  financial   institutions  party  thereto  and  their
        assignees under Section 12.5.  thereof (the  &#147;Lenders&#148;),  the Agent, and
        the other parties thereto, and (b) the Lenders and the Swingline Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to
        the Credit Agreement,  the Agent, the Lenders and the Swingline Lender have agreed
        to make available to the Borrower certain  financial  accommodations  on the terms
        and conditions set forth in the Credit Agreement;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Borrower
        and each of the Guarantors, 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,  the Lenders and the  Swingline  Lender  through  their
        collective efforts;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, each
        Guarantor  acknowledges that it will receive direct and indirect benefits from the
        Agent, the Lenders and the Swingline  Lender making such financial  accommodations
        available  to the  Borrower  under the Credit  Agreement  and,  accordingly,  each
        Guarantor is willing to guarantee the  Borrower&#146;s  obligations  to the Agent,
        the Lenders and the Swingline Lender on the terms and conditions contained herein;
        and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,          each
        Guarantor&#146;s  execution  and  delivery of this  Guaranty is a condition to the
        Agent  and  the  Lenders   making,   and   continuing  to  make,   such  financial
        accommodations to the Borrower.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE,  for
        good and valuable  consideration,  the receipt and sufficiency of which are hereby
        acknowledged by each Guarantor, each Guarantor agrees as follows:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Guaranty</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each  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  &#147;Guarantied  Obligations&#148;):  (a) all
        indebtedness  and obligations  owing by the Borrower to any Lender,  the Swingline
        Lender or the Agent under or in connection with the Credit Agreement and any other
        Loan Document, including without limitation, the repayment of all principal of the
        Revolving   Loans,  Bid  Rate  Loans,   Swingline  Loans  and  the   Reimbursement
        Obligations, and the payment
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        of all interest, Fees, charges, attorneys&#146;  fees and other amounts payable to
        any Lender or the 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&#146;  fees
        and  disbursements,  that  are  incurred  by the  Lenders  and  the  Agent  in the
        enforcement of any of the foregoing or any obligation of such Guarantor hereunder;
        and (d) all other Obligations.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Guaranty of Payment and Not of Collection</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This  Guaranty  is a  guaranty  of  payment,  and  not  of
        collection, and a debt of each Guarantor for its own account. Accordingly, none of
        the  Lenders,  the  Swingline  Lender or the Agent shall be  obligated or required
        before enforcing this Guaranty  against any Guarantor:  (a) to pursue any right or
        remedy any of them may have against the Borrower, any other Guarantor or any other
        Person or commence any suit or other  proceeding  against the Borrower,  any other
        Guarantor  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  Guarantor or any
        other Person;  or (c) to make demand of the Borrower,  any other  Guarantor or any
        other  Person or to enforce or seek to  enforce  or  realize  upon any  collateral
        security held by the Lenders,  the Swingline  Lender or the Agent which may secure
        any of the Guarantied Obligations.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Guaranty Absolute</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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 Agent,  the Lenders
        or the Swingline  Lender 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):
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;
        </FONT></P></TD></TR>

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        <TD WIDTH=5%></TD>
        <TD WIDTH=95%></TD></TR>

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<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any  furnishing  to the Agent,  the Lenders or
        the Swingline Lender 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;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any act or failure to act by the Borrower, any
        other  Loan  Party  or  any  other   Person  which  may   adversely   affect  such
        Guarantor&#146;s  subrogation  rights,  if any,  against  the  Borrower to recover
        payments made under this Guaranty;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any   nonperfection   or   impairment  of  any
        security interest or other Lien on any collateral, if any, securing in any way any
        of the Obligations;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any  application of sums paid by the Borrower,
        any other  Guarantor or any other Person with  respect to the  liabilities  of the
        Borrower to the Agent,  the Lenders or the  Swingline  Lender,  regardless of what
        liabilities of the Borrower remain unpaid;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any defect, limitation or insufficiency in the
        borrowing powers of the Borrower or in the exercise thereof; or
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any  other  circumstance which might otherwise
        constitute a defense available to, or a discharge of, a Guarantor hereunder (other
        than indefeasible payment in full).
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Action with Respect to Guarantied Obligations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The Lenders and the 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 other
        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 Guarantor 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.
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Representations and Warranties</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each Guarantor hereby makes to the Agent, the Lenders and
        the  Swingline  Lender  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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Inability to Accelerate Loan</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If the Agent, the Swingline Lender 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 Agent,  the  Swingline  Lender 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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Reinstatement of Guarantied Obligations</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;If claim is ever made on the  Agent,  any  Lender or the
        Swingline  Lender for  repayment or recovery of any amount or amounts  received in
        payment or on account of any of the Guarantied  Obligations,  and the Agent,  such
        Lender or the Swingline  Lender repays all or part of said amount by reason of (a)
        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 Agent,  such Lender or the Swingline 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 Agent,  such Lender or the Swingline  Lender for
        the amounts so repaid or  recovered to the same extent as if such amount had never
        originally been paid to the Agent, such Lender or the Swingline Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Subrogation</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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;  <U>provided</U>,  <U>however</U>,  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 Agent,
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        the Lenders and the  Swingline  Lender and shall  forthwith pay such amount to the
        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  Agent  as  collateral  security  for  any  Guarantied  Obligations
        existing.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Payments Free and Clear</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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 any Guarantor is required by Applicable Law or by a
        Governmental  Authority to make any such deduction or withholding,  such Guarantor
        shall pay to the Agent,  the Lenders  and the  Swingline  Lender  such  additional
        amount as will result in the receipt by the Agent,  the Lenders and the  Swingline
        Lender of the full amount payable  hereunder had such deduction or withholding not
        occurred or been required.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Set-off</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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 Agent and each Lender,  at
        any time during the  continuance of an Event of Default,  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 or Participant subject to receipt of the prior
        written consent of the 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 Agent,
        such Lender, or any affiliate of the Agent or such Lender, to or for the credit or
        the  account of such  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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Subordination</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each Guarantor hereby expressly covenants and agrees for
        the  benefit  of the  Agent,  the  Lenders  and  the  Swingline  Lender  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 &#147;Junior Claims&#148;) 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.
        <BR><BR></FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Avoidance Provisions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;It is the intent of each Guarantor, the Agent, the Lenders
        and the Swingline  Lender that in any Proceeding,  such  Guarantor&#146;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 Agent, the Lenders and the Swingline  Lender)
        to be avoidable or  unenforceable  against such Guarantor in such  Proceeding as a
        result of Applicable Law, including without limitation,
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        (a) Section 548 of the Bankruptcy  Code of 1978, as amended (the  &#147;Bankruptcy
        Code&#148;) 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  Agent,  the  Lenders  and the
        Swingline  Lender) 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  are  deemed to have  been  incurred  under the  Avoidance
        Provisions,  would not cause the  obligations of such Guarantor  hereunder (or any
        other  obligations of such  Guarantor to the Agent,  the Lenders and the Swingline
        Lender), to be subject to avoidance under the Avoidance  Provisions.  This Section
        is  intended  solely to  preserve  the rights of the Agent,  the  Lenders  and the
        Swingline  Lender  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 Agent,  the  Lenders  and the  Swingline
        Lender that would not  otherwise be  available to such Person under the  Avoidance
        Provisions.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 15.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Information</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each Guarantor assumes all  responsibility for being and
        keeping itself  informed of the financial  condition of the Borrower and the other
        Guarantors,  and of all other circumstances bearing upon the risk of nonpayment of
        any of the Guarantied  Obligations  and the nature,  scope and extent of the risks
        that such  Guarantor  assumes  and incurs  hereunder,  and agrees that none of the
        Agent,  the Lenders or the  Swingline  Lender  shall have any duty  whatsoever  to
        advise any Guarantor of information regarding such circumstances or risks.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;THIS  AGREEMENT  SHALL BE GOVERNED BY, AND  CONSTRUED IN
        ACCORDANCE  WITH,  THE  LAWS OF THE  STATE  OF  FLORIDA  APPLICABLE  TO  CONTRACTS
        EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 17.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>WAIVER OF JURY TRIAL</U>.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH   PARTY  HERETO   ACKNOWLEDGES  THAT  ANY
        DISPUTE OR  CONTROVERSY  BETWEEN OR AMONG ANY  GUARANTOR,  THE 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 LENDERS, THE AGENT AND EACH GUARANTOR 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  AGREEMENT OR ANY OTHER LOAN  DOCUMENT OR BY REASON OF
        ANY OTHER SUIT, CAUSE OF
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        ACTION OR DISPUTE  WHATSOEVER  BETWEEN OR AMONG THE BORROWER,  THE AGENT OR ANY OF
        THE LENDERS OF ANY KIND OR NATURE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH OF THE  GUARANTORS,  THE AGENT AND EACH
        LENDER HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT LOCATED IN NORTH CAROLINA OR,
        AT THE OPTION OF THE AGENT, ANY STATE COURT LOCATED IN CHARLOTTE,  NORTH CAROLINA,
        SHALL HAVE  JURISDICTION  TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES  BETWEEN OR
        AMONG ANY  GUARANTOR,  THE AGENT OR ANY OF THE  LENDERS,  PERTAINING  DIRECTLY  OR
        INDIRECTLY TO THIS AGREEMENT,  THE LOANS, THE LETTERS OF CREDIT,  THE NOTES 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 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 AGENT OR ANY LENDER OR THE  ENFORCEMENT BY THE AGENT
        OR ANY LENDER OF ANY  JUDGMENT  OBTAINED  IN SUCH  FORUM IN ANY OTHER  APPROPRIATE
        JURISDICTION.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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  AND THE
        TERMINATION OF THIS GUARANTY.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 18.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Loan Accounts</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  Agent,  each  Lender  and the  Swingline  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 be deemed conclusive  evidence of the amounts and other matters set
        forth herein,  absent manifest error.  The failure of the Agent, any Lender or the
        Swingline  Lender to maintain such books and accounts shall not in any way relieve
        or discharge any Guarantor of any of its obligations hereunder.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 19.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver of Remedies</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;No  delay or failure on the part of the Agent,  any Lender
        or the Swingline 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 Agent, any Lender or the Swingline 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.
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 20.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This Guaranty shall remain in full force and effect 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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 21.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and Assigns</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Each reference herein to the Agent or the Lenders shall be
        deemed to include such Person&#146;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&#146;s successors and assigns,
        upon whom this  Guaranty  also shall be binding.  The  Lenders  and the  Swingline
        Lender 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&#146;s  obligations hereunder. Each Guarantor hereby consents to the
        delivery  by the  Agent or 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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 22.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>JOINT AND SEVERAL OBLIGATIONS</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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 &#147;GUARANTIED  OBLIGATIONS&#148;  AND ALL OF THE OBLIGATIONS
        AND LIABILITIES OF EACH OF THE OTHER GUARANTORS HEREUNDER.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 23.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;This Guaranty may not be amended except in writing signed
        by the Requisite Lenders (or all of the Lenders if required under the terms of the
        Credit Agreement), the Agent and each Guarantor.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 24.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Payments</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;All payments to be made by any Guarantor pursuant to this
        Guaranty shall be made in Dollars, in immediately  available funds to the Agent at
        the Principal Office, not later than 2:00 p.m. on the date of demand therefor.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 25.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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 Agent,  any Lender or the Swingline  Lender at its  respective
        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; <U>provided</U>, <U>however</U>, that any
        notice of a change of address for notices shall not be effective until received.
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 26.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;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.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 27.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Section headings used in this Guaranty are for convenience
        only and shall not affect the construction of this Guaranty.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 28.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Limitation of Liability</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Neither  the Agent nor any  Lender,  nor any  affiliate,
        officer, director,  employee, attorney, or agent of the 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 Agent or any Lender or any of
        the Agent&#146;s or any Lender&#146;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 Credit Agreement or financed thereby.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 29.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of this Guaranty:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Proceeding</U>&#148;
        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.
        <BR><BR></FONT></P></TD></TR>


<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terms not otherwise  defined herein are used
        herein with the respective meanings given them in the Credit Agreement.
        <BR><BR></FONT></P></TD></TR>

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        [Signatures on Next Page]
        <BR><BR></FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,
        each  Guarantor has duly  executed and delivered  this Guaranty as of the date and
        year first written above.
        <BR><BR></FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [GUARANTORS]<BR><BR>


        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR>

        Address for Notices:<BR><BR>

        c/o Commercial Net Lease Realty, Inc.<BR>
        450 South Orange Avenue, Suite 900<BR>
        Orlando, Florida 32801<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Kevin B. Habicht<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(407) 265-7348<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(407) 650-1044
        </FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        ANNEX I<BR><BR>
        FORM OF ACCESSION AGREEMENT
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS         ACCESSION
        AGREEMENT   dated  as  of   ____________,   200__,   executed  and   delivered  by
        ______________________,  a _____________ (the &#147;New Guarantor&#148;), in favor
        of (a)  WACHOVIA  BANK,  NATIONAL  ASSOCIATION,  in its  capacity  as  Agent  (the
        &#147;Agent&#148;) for the Lenders under that certain Seventh Amended and Restated
        Credit  Agreement dated as of May 9, 2003 (as amended,  restated,  supplemented or
        otherwise  modified from time to time, the &#147;Credit  Agreement&#148;),  by and
        among Commercial Net Lease Realty, Inc. (the &#147;Borrower&#148;),  the financial
        institutions  party thereto and their assignees  under Section 12.5.  thereof (the
        &#147;Lenders&#148;),  the  Agent,  and the  other  parties  thereto,  and (b) the
        Lenders and the Swingline Lender.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to
        the Credit Agreement,  the Agent, the Lenders and the Swingline Lender have agreed
        to make available to the Borrower certain  financial  accommodations  on the terms
        and conditions set forth in the Credit Agreement;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,     the
        Borrower,  the New Guarantor,  and the existing Guarantors,  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,  the Lenders and the Swingline
        Lender through their collective efforts;
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,   the  New
        Guarantor  acknowledges that it will receive direct and indirect benefits from the
        Agent, the Lenders and the Swingline  Lender making such financial  accommodations
        available to the Borrower  under the Credit  Agreement and,  accordingly,  the New
        Guarantor is willing to guarantee the  Borrower&#146;s  obligations  to the Agent,
        the Lenders and the Swingline Lender on the terms and conditions contained herein;
        and
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,    the    New
        Guarantor&#146;s  execution  and delivery of this  Agreement is a condition to the
        Agent,  the Lenders and the Swingline  Lender  continuing  to make such  financial
        accommodations to the Borrower.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Accession to Guaranty</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;The  New   Guarantor   hereby   agrees  that  it  is  a
        &#147;Guarantor&#148;  under  that  certain  Guaranty  dated as of May 9, 2003 (as
        amended,  supplemented,  restated or  otherwise  modified  from time to time,  the
        &#147;Guaranty&#148;),  made by each Subsidiary of the Borrower a party thereto in
        favor  of the  Agent,  the  Lenders  and the  Swingline  Lender  and  assumes  all
        obligations of a &#147;Guarantor&#148; 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:
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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);
        <BR><BR></FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;makes  to the  Agent,  the  Lenders  and the
        Swingline Lender 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
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consents  and  agrees  to each  provision  set
        forth in the Guaranty.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>GOVERNING LAW</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;THIS  AGREEMENT  SHALL BE GOVERNED BY, AND CONSTRUED AND
        ENFORCED  IN  ACCORDANCE  WITH,  THE LAWS OF THE STATE OF  FLORIDA  APPLICABLE  TO
        CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
        <BR><BR></FONT></P></TD></TR>

<TR VALIGN=TOP>
        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.
        &nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.

        &nbsp;&nbsp;&nbsp;&nbsp;Capitalized  terms used herein and not otherwise defined
        herein  shall  have their  respective  defined  meanings  given them in the Credit
        Agreement.
        <BR><BR></FONT></P></TD></TR>

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        <TD COLSPAN=2><P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [Signatures on Next Page]
        </FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
        <BR><BR></FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        [NEW GUARANTOR]<BR><BR>

        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        <BR><BR><BR>

        Address for Notices:<BR><BR>

        c/o Commercial Net Lease Realty, Inc.<BR>
        450 South Orange Avenue, Suite 900<BR>
        Orlando, Florida 32801<BR>
        Attn:&nbsp;&nbsp;&nbsp;&nbsp;Kevin B. Habicht<BR>
        Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(407) 265-7348<BR>
        Telecopy:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(407) 650-1044
        <BR><BR></FONT></P></TD></TR>

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        <TD>&nbsp;</TD>
        <TD><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif"  SIZE=2>
        Accepted:<BR><BR>

        WACHOVIA BANK, NATIONAL<BR>
        &nbsp;&nbsp; ASSOCIATION, as Agent<BR><BR>


        <BR>By:________________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:___________________________<BR>

        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:____________________________
        </FONT></P></TD></TR>

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