Document:

<PAGE>
                                                                     EXHIBIT 4.1

                                364-DAY REVOLVING
                                CREDIT AGREEMENT

                           DATED AS OF AUGUST 25, 2005

                                      AMONG

                         WEATHERFORD INTERNATIONAL LTD.

                                       AND

                        WEATHERFORD LIQUIDITY MANAGEMENT
                       HUNGARY LIMITED LIABILITY COMPANY,
                                  AS BORROWERS,

                        WEATHERFORD INTERNATIONAL, INC.,
                                  AS GUARANTOR,

                            UBS AG, STAMFORD BRANCH,
                            AS ADMINISTRATIVE AGENT,

                              BANK OF AMERICA, N.A.

                                       AND

                      MORGAN STANLEY SENIOR FUNDING, INC.,
                            AS CO-SYNDICATION AGENTS,

                            THE LENDERS PARTY HERETO,

                                       AND

                               UBS SECURITIES LLC,
                         BANC OF AMERICA SECURITIES LLC

                                       AND

                      MORGAN STANLEY SENIOR FUNDING, INC.,
                  AS JOINT BOOKRUNNERS AND JOINT LEAD ARRANGERS

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                    PAGE
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<S>                                                                                                                 <C>
Article I DEFINITIONS; ACCOUNTING TERMS; INTERPRETATION..........................................................     1
   SECTION 1.01.       Definitions...............................................................................     1
   SECTION 1.02.       Types of Borrowings.......................................................................    18
   SECTION 1.03.       Accounting Terms; Changes in GAAP.........................................................    18
   SECTION 1.04.       Interpretation............................................................................    19

Article II COMMITMENTS; LOANS....................................................................................    20
   SECTION 2.01.       Loans.....................................................................................    20
   SECTION 2.02.       Requests for Loans........................................................................    21
   SECTION 2.03.       Funding of Borrowings.....................................................................    21
   SECTION 2.04.       Interest Elections........................................................................    22
   SECTION 2.05.       Optional Termination and Reduction of Commitments.........................................    23
   SECTION 2.06.       Repayment of Loans; Evidence of Debt......................................................    24
   SECTION 2.07.       Optional Prepayment of Loans..............................................................    24
   SECTION 2.08.       Mandatory Termination and Reduction of Commitments; Mandatory Prepayment of Loans.........    25
   SECTION 2.09.       Fees......................................................................................    25
   SECTION 2.10.       Interest..................................................................................    26
   SECTION 2.11.       Alternate Rate of Interest................................................................    27
   SECTION 2.12.       Increased Costs...........................................................................    27
   SECTION 2.13.       Break Funding Payments....................................................................    28
   SECTION 2.14.       Agreement to Defer Exercise of Right of Contribution, Etc.................................    29

Article III PAYMENTS; PRO RATA TREATMENT; TAXES..................................................................    29
   SECTION 3.01.       Payments Generally; Pro Rata Treatment; Sharing of Set-offs...............................    29
   SECTION 3.02.       Taxes.....................................................................................    31
   SECTION 3.03.       Mitigation Obligations; Replacement of Lenders............................................    33

Article IV CONDITIONS PRECEDENT..................................................................................    33
   SECTION 4.01.       Conditions Precedent to the Initial Credit Event..........................................    33
   SECTION 4.02.       Conditions Precedent to All Credit Events.................................................    35
   SECTION 4.03.       Delivery of Documents.....................................................................    36

Article V REPRESENTATIONS AND WARRANTIES.........................................................................    36
   SECTION 5.01.       Organization and Qualification............................................................    36
   SECTION 5.02.       Authorization, Validity, Etc..............................................................    36
   SECTION 5.03.       Governmental Consents, Etc................................................................    37
   SECTION 5.04.       No Breach or Violation of Law or Agreements...............................................    37
   SECTION 5.05.       Title to Assets...........................................................................    37
   SECTION 5.06.       Information; Financial Statements.........................................................    37
   SECTION 5.07.       Investment Company Act....................................................................    38
   SECTION 5.08.       Public Utility Holding Company Act........................................................    38
   SECTION 5.09.       ERISA.....................................................................................    38
</TABLE>

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<TABLE>
<S>                                                                                                                  <C>
   SECTION 5.10.       Tax Returns and Payments..................................................................    38
   SECTION 5.11.       Requirements of Law; Environmental Matters................................................    39
   SECTION 5.12.       Purpose of Loans..........................................................................    39
   SECTION 5.13.       Designation of the Obligations............................................................    39
   SECTION 5.14.       No Default................................................................................    39

Article VI AFFIRMATIVE COVENANTS.................................................................................    40
   SECTION 6.01.       Information Covenants.....................................................................    40
   SECTION 6.02.       Books, Records and Inspections............................................................    41
   SECTION 6.03.       Insurance and Maintenance of Properties...................................................    42
   SECTION 6.04.       Payment of Taxes and other Claims.........................................................    42
   SECTION 6.05.       Existence.................................................................................    42
   SECTION 6.06.       ERISA Information and Compliance..........................................................    42

Article VII NEGATIVE COVENANTS...................................................................................    43
   SECTION 7.01.       Material Change in Business...............................................................    43
   SECTION 7.02.       Consolidation, Merger, or Sale of Assets, Etc.............................................    43
   SECTION 7.03.       Liens.....................................................................................    45
   SECTION 7.04.       Indebtedness..............................................................................    45
   SECTION 7.05.       Ownership of WII..........................................................................    45
   SECTION 7.06.       Financial Covenant........................................................................    45
   SECTION 7.07.       Limitation on Transactions with Affiliates................................................    45
   SECTION 7.08.       Restrictions on Subsidiary Dividends......................................................    46
   SECTION 7.09.       The Debenture Indentures..................................................................    46

Article VIII EVENTS OF DEFAULT AND REMEDIES......................................................................    46
   SECTION 8.01.       Events of Default and Remedies............................................................    46
   SECTION 8.02.       Right of Setoff...........................................................................    49
   SECTION 8.03.       Other Remedies............................................................................    49
   SECTION 8.04.       Application of Moneys During Continuation of Event of Default.............................    49

Article IX ADMINISTRATIVE AGENT..................................................................................    50

Article X GUARANTY...............................................................................................    52
   SECTION 10.01.      Guaranty..................................................................................    52
   SECTION 10.02.      Continuing Guaranty.......................................................................    52
   SECTION 10.03.      Effect of Debtor Relief Laws..............................................................    55
   SECTION 10.04.      Waiver....................................................................................    55
   SECTION 10.05.      Agreement to Defer Exercise of Subrogation................................................    56
   SECTION 10.06.      Full Force and Effect.....................................................................    56

Article XI MISCELLANEOUS.........................................................................................    56
   SECTION 11.01.      Waiver; Amendments........................................................................    56
   SECTION 11.02.      Notices...................................................................................    57
   SECTION 11.03.      Expenses, Etc.............................................................................    57
   SECTION 11.04.      Indemnity.................................................................................    58
   SECTION 11.05.      Amendments, Etc...........................................................................    58
</TABLE>

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<TABLE>
<S>                                                                                                                 <C>
   SECTION 11.06.      Successors and Assigns....................................................................    59
   SECTION 11.07.      Confidentiality...........................................................................    63
   SECTION 11.08.      Survival of Representations and Warranties................................................    63
   SECTION 11.09.      Governing Law.............................................................................    63
   SECTION 11.10.      Independence of Covenants.................................................................    64
   SECTION 11.11.      Binding Effect............................................................................    64
   SECTION 11.12.      Severability..............................................................................    64
   SECTION 11.13.      Conflicts Between This Agreement and the Other Loan Documents.............................    64
   SECTION 11.14.      Limitation of Interest....................................................................    64
   SECTION 11.15.      Execution in Counterparts.................................................................    64
   SECTION 11.16.      Submission to Jurisdiction................................................................    64
   SECTION 11.17.      Waiver of Jury Trial......................................................................    65
   SECTION 11.18.      Judgment Currency.........................................................................    66
   SECTION 11.19.      Final Agreement of the Parties............................................................    66
   SECTION 11.20.      USA Patriot Act...........................................................................    66
</TABLE>

EXHIBITS

EXHIBIT A    Form of Assignment and Assumption
EXHIBIT B    Form of Promissory Note
EXHIBIT C    Form of Compliance Certificate
EXHIBIT D    Form of Borrowing Request
EXHIBIT E    Form of Interest Election Request

SCHEDULES

Pricing Schedule

SCHEDULE 1.01   Lenders
SCHEDULE 2.01   Commitments
SCHEDULE 5.01   Material Subsidiaries

                                     - iii -
<PAGE>

                       364-DAY REVOLVING CREDIT AGREEMENT

      THIS 364-DAY REVOLVING CREDIT AGREEMENT, dated as of August 25, 2005, is
among:

(a)   Weatherford International Ltd., a Bermuda exempted company ("WIL");

(b)   Weatherford International, Inc., a Delaware corporation ("WII" or the
      "Guarantor");

(c)   Weatherford Liquidity Management Hungary Limited Liability Company, a
      Hungarian limited liability company ("HOC" and together with WIL,
      collectively, the "Borrowers");

(d)   UBS AG, Stamford Branch, as administrative agent for the other Lenders (in
      such latter capacity together with any other Person that becomes the
      Administrative Agent pursuant to Article IX, the "Administrative Agent");
      and

(e)   the banks and other financial institutions listed on the signature pages
      hereof under the caption "Lenders" (together with each other Person that
      becomes a Lender pursuant to Section 11.06, collectively, the "Lenders").

      The parties hereto agree as follows:

                                    Article I

                  DEFINITIONS; ACCOUNTING TERMS; INTERPRETATION

      Section 1.01. Definitions. As used in this Agreement the following terms
shall have the following meanings:

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

      "Acquisition" means the acquisition by certain subsidiaries of WIL of
Precision Drilling Corporation's Energy Services Division and International
Contract Drilling Division pursuant to the Acquisition Document.

      "Acquisition Document" means the Stock Purchase Agreement dated as of June
6, 2005 by and between Precision Drilling Corporation and WIL.

      "Acquisition Borrowing" means any Borrowing comprised of Loans, the
proceeds of which will be used to fund the Acquisition, including any related
post-closing purchase price adjustment.

      "Acquisition Borrowing Date" means any date (whether one or more) on which
the Loans comprising any Acquisition Borrowing are made.

                                     - 1 -
<PAGE>

      "Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.

      "Administrative Agent" has the meaning specified in paragraph (d) on page
one.

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

      "Affiliate" means, with respect to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under direct or
indirect common control with, such Person. For the purposes of this definition,
"control" (including, with correlative meanings, the terms "controlling" and
"controlled"), when used with respect to any Person, means the power to direct
the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise.

      "Agreement" means this 364-Day Revolving Credit Agreement, as it may from
time to time be further amended, modified, restated or supplemented.

      "Alternate Base Rate" means, for any day, a rate per annum (rounded
upward, if necessary, to the nearest 1/100th of 1%) equal to the greater of (a)
the Base Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. If the Administrative Agent shall have
determined (which determination shall be presumed correct absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate for any reason,
including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms of the definition thereof,
the Alternate Base Rate shall be determined without regard to clause (b) of the
preceding sentence until the circumstances giving rise to such inability no
longer exist. Any change in the Alternate Base Rate due to a change in the Base
Rate or the Federal Funds Effective Rate shall be effective from and including
the effective date of such change in the Base Rate or the Federal Funds
Effective Rate, respectively.

      "Applicable Margin" means the per annum rate of interest set forth in the
definition of Applicable Rate under the heading "Applicable Margin", based upon
the ratings by Moody's and S&P, respectively, applicable on such date to the
Index Debt.

      "Applicable Rate" means, for any day, with respect to any Eurodollar Loan,
or with respect to the facility fees payable hereunder, as the case may be, the
applicable rate per annum set forth on the Pricing Schedule under the caption
"Utilization Fee", "Facility Fee" or "Applicable Margin", as the case may be,
based upon the ratings by Moody's and S&P, respectively, applicable on such date
to the Index Debt.

      "Approved Fund" has the meaning specified in Section 11.06.

      "Assignment and Assumption" means an assignment and assumption entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 11.06) and accepted by the Administrative Agent, in the form
of Exhibit A.

                                     - 2 -
<PAGE>

      "Assurance" means, as to any Person, any guaranty or other contingent
liability of such Person (other than any endorsement for collection or deposit
in the ordinary course of business) or obligations as an account party in
respect of letters of credit, direct or indirect, with respect to any obligation
of another Person, through an agreement or otherwise, including (a) any other
endorsement or discount with recourse or undertaking substantially equivalent to
or having economic effect similar to a guarantee in respect of any such
obligation and (b) any agreement (i) to purchase, or to advance or supply funds
for the payment or purchase of, any such obligation, (ii) to purchase securities
or to purchase, sell or lease property (whether as lessee or lessor), products,
materials or supplies, or transportation or services, in respect of enabling
such other Person to pay any such obligation or to assure the owner thereof
against loss regardless of the delivery or non-delivery of the securities,
property, products, materials or supplies, or transportation or services or
(iii) to make any loan, advance or capital contribution to or other investment
in, or to otherwise provide funds to or for, such other Person in respect of
enabling such Person to satisfy any obligation (including any liability for a
dividend, stock liquidation payment or expense) or to assure a minimum equity,
working capital or other balance sheet condition in respect of any such
obligation. The amount of any Assurance shall be an amount equal to the lesser
of the stated or determinable amount of the primary obligation in respect of
which such Assurance is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder) as determined by such Person in good faith.

      "Availability Period" means, for each Lender, the period from the
Effective Date to the earlier of the Maturity Date and the date of termination
of the Commitments.

      "Bankruptcy Code" means the United States Bankruptcy Code, as the same may
be amended and together with any successor statutes.

      "Base Rate" means the rate of interest per annum that is equal to the
corporate base rate of interest established by the Administrative Agent from
time to time; each change in the Base Rate shall be effective on the date such
change is effective. The corporate base rate is not necessarily the lowest rate
charged by the Administrative Agent to its customers.

      "Board" means the Board of Governors of the Federal Reserve System of the
United States (or any successor).

      "Board of Directors" means, with respect to any Person, the Board of
Directors of such Person (or of its (managing) general partner or managing
member, as the case may be), or any committee thereof duly authorized to act on
behalf of such Board of Directors.

      "Borrowers" has the meaning specified in paragraph (c) on page one.

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

      "Borrowing Request" means a request by a Borrower for a Loan in accordance
with Section 2.02 and substantially in the form of Exhibit D, or such other form
as shall be approved by the Administrative Agent.

                                     - 3 -
<PAGE>

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

      "Capital Lease" means, as to any Person, any lease in respect of which the
rental obligation of such Person constitutes a Capitalized Lease Obligation.

      "Capital Markets Takeout Financing" means (a) any public or private
issuance or sale of debt securities and/or preferred equity securities
(including mezzanine loans or securities) and/or (b) any public or private
offering or sale of equity securities or equity-linked securities (including
convertible securities), in each case (i) issued or guaranteed by one or more of
the Obligors, (ii) to Persons other than an Obligor or a Subsidiary of an
Obligor and (iii) the proceeds of which are cash; provided that none of the
following shall constitute a "Capital Markets Takeout Financing": (w) the sale
of equity interests issued by any Person that is not an Obligor in a transaction
involving a disposition of such Person, (x) the New Revolving Credit Facility,
(y) the issuance of any commercial paper, or the short term notes equivalent of
commercial paper, or any notes with maturities of greater than 270 days but less
than 397 days, by any Obligor and (z) the issuance of any equity securities or
equity-linked securities by any Obligor to support employee and director
compensation programs.

      "Capital Stock" means, with respect to any Person, any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents (however designated) of such Person's equity, including all common
stock and preferred stock, common shares and preference shares, any limited or
general partnership interest and any limited liability company membership.

      "Capitalized Lease Obligation" means, with respect to any Person, the
obligation of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) real or personal property that is
required to be classified and accounted for as a capital lease obligation on a
balance sheet of such Person under GAAP and, for purposes of this Agreement, the
amount of such obligation at any date shall be the capitalized amount thereof at
such date, determined in accordance with GAAP.

      "Change of Control" means an event or series of events by which (a) in the
case of WIL (i) any "person" (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act as in effect on the Effective Date) or related persons
constituting a "group" (as such term is used in Rule 13d-5 under the Exchange
Act in effect on the Effective Date) is or becomes the "beneficial owner" (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, as in effect on the
Effective Date, except that a person or such group shall be deemed to have
"beneficial ownership" of all shares that any such person or such group has the
right to acquire without condition, other than the passage of time, whether such
right is exercisable immediately or only after the passage of time), directly or
indirectly, of 50% or more of the total voting power of the Voting Stock of WIL,
except as a result of a Redomestication in which the Persons who were the
shareholders of WIL immediately prior to such Redomestication continue to own,
directly or indirectly, 100% of the issued and outstanding Capital Stock of each
class of WIL; (ii) the shareholders of WIL approve any plan of liquidation,
winding up or dissolution of WIL, except

                                     - 4 -
<PAGE>

in connection with a Redomestication of WIL; (iii) WIL conveys, transfers or
leases all or substantially all of its assets to any Person except in connection
with a Redomestication of WIL; or (iv) during any period of twelve consecutive
months, individuals who, at the beginning of such period, constituted the Board
of Directors of WIL (together with any new directors whose appointment or
election by such Board of Directors or whose nomination for election by the
shareholders of WIL, as applicable, was approved by a vote of not less than a
majority of the directors then still in office who were either directors at the
beginning of such period or whose appointment, election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of WIL then in office, but excluding from the
foregoing clause any change in the composition or membership of the Board of
Directors of WIL resulting (i) from a Redomestication of WIL or (ii) from the
addition thereto or removal therefrom of directors in connection with WIL's
compliance with the United States Sarbanes Oxley Act of 2002 or the rules and
regulations of any stock exchange on which WIL's securities are listed, pursuant
to the recommendation of WIL's legal counsel, (b) in the case of WII, except in
a transaction permitted by Section 7.02(a)(ii)(B) or 7.02(b), the Persons who
are the shareholders of WII immediately prior to a transaction cease to own,
after giving effect to such transaction, directly or indirectly, 100% of the
issued and outstanding Capital Stock of each class of WII, or (c) in the case of
HOC, except in a transaction permitted by Section 7.02, WIL or the New Parent
ceases to own, after giving effect to such transaction, directly or indirectly,
100% of the issued and outstanding Capital Stock of each class of HOC.

      "Change of Control Event" means (a) the execution of any definitive
agreement which when fully performed by the parties thereto, would result in a
Change of Control; or (b) the commencement of a tender offer pursuant to Section
14(d) of the Exchange Act that would result in a Change of Control if completed.

      "Change in Law" means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender (or, for
purposes of Section 2.12, by any lending office of such Lender or by such
Lender's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

      "Charges" has the meaning specified in Section 11.14.

      "Code" means the United States Internal Revenue Code of 1986, as amended,
from time to time, and the regulations promulgated thereunder.

      "Commitment" means, with respect to each Lender, the commitment of such
Lender to make Loans hereunder, expressed as an amount representing the maximum
aggregate amount of such Lender's Revolving Credit Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Section 2.05 or 2.08
and (b) reduced or increased from time to time pursuant to assignments by or to
such Lender pursuant to Section 11.06. The initial amount of each Lender's
Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Commitment, as applicable.
The initial aggregate amount of the Lenders' Commitments is $1,200,000,000.

                                     - 5 -
<PAGE>

      "Communications" has the meaning specified in Section 11.02.

      "consolidated" means any Person whose financial condition and results of
operations are required in accordance with GAAP to be shown on a consolidated
basis with the financial condition and results of operations of WIL.

      "Consolidated Indebtedness" means, for any Person, at the date of any
determination thereof, Indebtedness of such Person and its consolidated
Subsidiaries (other than Interest Rate Risk Indebtedness, Derivatives
Obligations, and contingent obligations in respect of letters of credit)
determined on a consolidated basis in accordance with GAAP.

      "CP Borrowing" means any Borrowing comprised of Loans, the proceeds of
which will be used to refinance commercial paper, or the short term notes
equivalent of commercial paper, issued by either Borrower or the Guarantor.

      "Credit Event" means the making of any Loan pursuant hereto.

      "Default" means the occurrence of any event which with the giving of
notice or the passage of time or both would become an Event of Default.

      "Derivatives Obligations" means, as to any Person all obligations of such
Person in respect of any swap transaction, forward rate transaction, commodity
swap, commodity option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar
transaction (including any option with respect to any of the foregoing
transactions) or any combination of the foregoing transactions, entered into in
the ordinary course of business of such Person for the purpose of hedging and
not for speculative purposes.

      "Dollars," "dollars" and "$" means lawful money of the United States of
America.

      "domestic" means, when used with respect to a Subsidiary of a Person, a
Subsidiary organized under the laws of any State of the United States or the
District of Columbia.

      "Domestic Intercompany Debt" means Indebtedness owed by any domestic
Subsidiary of WIL to WIL or to any Wholly-Owned Subsidiary of WIL.

      "Effective Date" means the date on which the conditions set forth in
Section 4.01 are first satisfied or waived.

      "Environmental Law" means all federal, state, provincial or local laws,
statutes, rules, regulations, ordinances and codes, together with all final
administrative orders, licenses, authorizations and permits of, and written
agreements with, any Governmental Authorities, in each case relating to the
protection of the environment or the disposal of hazardous waste.

      "ERISA" means the United States Employee Retirement Income Security Act of
1974, as amended from time to time, and all rules, regulations, rulings and
interpretations adopted by the U.S. Department of Labor thereunder.

                                     - 6 -
<PAGE>

      "ERISA Affiliate" means (a) all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with WIL, are treated as a single employer under
Section 414 of the Code and (b) any Subsidiary of any of the Obligors.

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

      "Event of Default" shall have the meaning specified in Article VIII.

      "Exchange Act" means the United States Securities Exchange Act of 1934, as
amended.

      "Excluded Taxes" means, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of either Borrower hereunder, (a) income or franchise taxes imposed
on (or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other
jurisdiction in which a Borrower, the Administrative Agent, any Lender or any
other such recipient is located, (c) in the case of a Foreign Lender (other than
an assignee pursuant to a request by a Borrower under Section 3.03(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) or would have been so imposed if a Borrower were a United States
corporation, or is attributable to such Foreign Lender's failure to comply with
Section 3.02(c) or 3.02(e), except to the extent that such Foreign Lender (or
its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from such Borrower with
respect to such withholding tax pursuant to Section 3.02(a) and (d) in the case
of any Lender that becomes a party to this Agreement after the date hereof (or
designates a new lending office after the date hereof) without the prior written
consent of WIL pursuant to Section 11.06 (other than a Lender that becomes a
party to this Agreement or designates a new lending office when an Event of
Default has occurred and is continuing), any withholding tax that is imposed on
amounts payable to such Lender pursuant to this Agreement (and including any
additional withholding tax that is imposed on amounts payable to such Lender as
a result of a change in treaty, law or regulation).

      "Existing Revolving Credit Facility" means that certain Amended and
Restated Credit Agreement dated as of January 14, 2005 among the Borrowers, the
Guarantor, JPMorgan Chase Bank, N.A., individually and as Administrative Agent,
and the other lenders party thereto, as it may from time to time be amended.

      "Facility Fee" has the meaning set forth in Section 2.09(a).

      "Facility Fee Rate" means the per annum rate of interest set forth under
the heading "Facility Fee" in the definition of Applicable Rate, based upon the
ratings by Moody's and S&P, respectively, applicable on such date to the Index
Debt.

                                     - 7 -
<PAGE>

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

      "foreign" means, when used with respect to a Subsidiary of any Person, a
Subsidiary of such Person organized under the laws of any jurisdiction other
than a State of the United States or the District of Columbia.

      "Foreign Lender" means any Lender that is organized under the laws of a
jurisdiction other than the United States of America or any State thereof.

      "GAAP" means generally accepted accounting principles as in effect from
time to time as set forth in the opinions, statements and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and the Financial Accounting Standards Board.

      "Governmental Authority" means any governmental authority of the United
States of America, any State of the United States, Bermuda, the Republic of
Hungary or of any other foreign jurisdiction and any political subdivision of
any of the foregoing, and any central bank, agency, department, commission,
board, bureau, court or other tribunal having or lawfully asserting jurisdiction
over the Administrative Agent, any Lender, any Obligor or their respective
properties.

      "Guaranteed Obligations" has the meaning specified in Section 10.01.

      "Guarantor" has the meaning specified in paragraph (b) on page one.

      "Guaranty" means the guaranty contained in Article X.

      "HOC" has the meaning specified in paragraph (c) on page one.

      "Indebtedness" means (without duplication), with respect to any Person,
(a) any liability of such Person (i) for borrowed money (whether or not the
recourse of the lender is to the whole of the assets of such Person or only to a
portion thereof), or under any reimbursement obligation relating to a letter of
credit, bankers' acceptance or note purchase facility, (ii) evidenced by a bond,
note, debenture or similar instrument, (iii) for the balance deferred and unpaid
of the purchase price for any property or any obligation upon which interest
charges are customarily paid (except for trade payables arising in the ordinary
course of business), or (iv) for the payment of money relating to the principal
portion of any Capitalized Lease Obligation; (b) any obligation of any Person
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) a consensual Lien on property owned
or acquired, whether or not any obligation secured thereby has been assumed, by
such Person; (c) all net obligations of such Person as of the date of a required
calculation of any Derivatives Obligations;

                                     - 8 -
<PAGE>

(d) all Assurances of such Person of the Indebtedness of any other Person of the
type referred to in clause (a) or (c); (e) Interest Rate Risk Indebtedness of
such Person; and (f) any amendment, supplement, modification, deferral, renewal,
extension or refunding of any liability of the types referred to above.

      "Indemnified Taxes" means any Taxes other than Excluded Taxes and Other
Taxes.

      "Indemnitee" has the meaning specified in Section 11.04.

      "Index Debt" means senior, unsecured, long-term indebtedness for borrowed
money of WIL that is not guaranteed by any other Person or subject to any other
credit enhancement.

      "Interest Election Request" means a request by a Borrower to convert or
continue a Loan in accordance with Section 2.04 and substantially in the form of
Exhibit E, or such other form as shall be approved by the Administrative Agent.

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

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

      "Interest Rate Risk Indebtedness" means, with respect to any Person, all
obligations and Indebtedness of such Person with respect to the program for the
hedging of interest rate risk provided for in any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or similar
arrangement entered into such Person for the purpose of reducing its exposure to
interest rate fluctuations and not for speculative purposes, approved in writing
by the Administrative Agent (such approval not to be unreasonably withheld), as
it may from time to time be amended, modified, restated or supplemented.

      "ISDA" means the International Swaps and Derivatives Association, Inc.

                                     - 9 -
<PAGE>

      "Lenders" means the Persons listed on Schedule 1.01 and any other Person
that shall have become a party hereto pursuant to an Assignment and Assumption,
other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Assumption.

      "LIBO Rate" means the Applicable Margin from time to time in effect plus
the applicable British Bankers' Association London interbank offered rate for
deposits in Dollars for such Loan, as reported by any generally recognized
financial information service as of 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period, and having a maturity equal to
such Interest Period, provided that if no such British Bankers' Association
London interbank offered rate is available to the Administrative Agent, the
applicable LIBO Rate for the relevant Interest Period shall instead be the rate
at which deposits in Dollars and in immediately available funds are offered to
first class banks in the London interbank market by the Reference Bank at 11:00
a.m. (London time) two Business Days before the first day of the applicable
Interest Period and for a period equal to such Interest Period and in amounts
substantially equal to the amount of the requested LIBO Rate Loan of the
Reference Bank comprising a part of such Borrowing.

      "Lien" means any lien, mortgage, pledge, assignment (including any
assignment of rights to receive payments of money), security interest, charge or
encumbrance of any kind including any conditional sale or other title retention
agreement or any lease (excluding, however, any lease that is not a Capital
Lease) in the nature thereof (whether voluntary or involuntary and whether
imposed or created by operation of law or otherwise), and any agreement to give
a lien, mortgage, pledge, assignment (including any assignment of rights to
receive payments of money), security interest, charge or other encumbrance of
any kind; provided that "Lien" shall not include or cover (i) setoff rights and
other standard arrangements for netting payment obligations in the settlement of
obligations, arising under ISDA standard documents or otherwise customary in
swap or hedging transactions; and (ii) setoff rights of banks party to
Derivatives Obligations which rights arise in the ordinary course of customary
banking relationships.

      "Loan" means a loan made pursuant to Section 2.01.

      "Loan Documents" means, collectively, this Agreement, the Notes, all
instruments, certificates (including all Borrowing Requests) and agreements now
or hereafter executed or delivered by any Obligor to the Administrative Agent or
any Lender pursuant to any of the foregoing or in connection with the
Obligations or any commitment regarding the Obligations, and all amendments,
modifications, renewals, extensions, increases and rearrangements of, and
substitutions for, any of the foregoing.

      "Material Adverse Effect" means, relative to any occurrence of whatever
nature (including any adverse determination in any litigation, arbitration or
governmental investigation or proceeding) and after taking into account actual
insurance coverage and effective indemnification with respect to such
occurrence, (a) a material adverse effect on the financial condition, business
or operations of WIL and its consolidated Subsidiaries taken as a whole, (b) the
impairment of (i) the ability of the Obligors to collectively perform their
payment or other material obligations hereunder or under the Notes and other
Loan Documents or (ii) the ability of the Administrative Agent or the Lenders to
realize the material benefits intended to be provided

                                     - 10 -
<PAGE>

by the Obligors under the Loan Documents or (c) the subjection of the
Administrative Agent or any Lender to any civil or criminal liability arising in
connection with the Loan Documents.

      "Material Subsidiary" means, at any date, a consolidated Subsidiary the
Capital Stock of which is owned by WIL and/or one or more of its Subsidiaries
and that either (a) has total assets in excess of 5% of the total assets of WIL
and its consolidated Subsidiaries, in each case as determined in accordance with
GAAP or (b) has gross net revenues in excess of 5% of the consolidated gross
revenues of WIL and its consolidated Subsidiaries based, in each case, on the
most recent audited consolidated financial statements of WIL.

      "Maturity Date" means August 23, 2006.

      "Maximum Rate" has the meaning set forth in Section 11.14.

      "May 1996 Debenture Indenture" means the Indenture dated as of May 17,
1996, from WII to The Bank of New York, as Trustee, as amended and supplemented
to the Effective Date.

      "May 1996 Debentures" means WII's debentures issued pursuant to the May
1996 Debenture Indenture, which are guaranteed by WIL.

      "Moody's" means Moody's Investors Service, Inc.

      "Multiemployer Plan" means any plan which is a "multiemployer plan" (as
such term is defined in Section 4001(a)(3) of ERISA).

      "Net Cash Proceeds" means the cash proceeds of any Capital Markets Takeout
Financing, net of customary fees, commissions, costs and other expenses incurred
in connection therewith.

      "Net Worth" means, for any Person, at the date of any determination
thereof, on a consolidated basis, the sum of (a) the par value or stated value
of its Capital Stock, plus (b) capital in excess of par or stated value of
shares of its Capital Stock, plus (or minus in the case of a deficit) (c)
retained earnings or accumulated deficit, as the case may be, plus (d) any other
account which, in accordance with GAAP, constitutes stockholders' equity, but
excluding (i) any treasury stock, (ii) non-cash charges incurred in connection
with the Acquisition in an aggregate amount not to exceed $350,000,000 and (iii)
the effects upon net worth resulting from the translation of foreign currency
denominated assets into Dollars.

      "New Parent" has the meaning specified in the definition of the term
"Redomestication".

      "New Revolving Credit Facility" means any new revolving credit facility
that replaces the Existing Revolving Credit Facility. For the avoidance of
doubt, the term "New Revolving Credit Facility" includes any amendment and
restatement of the Existing Revolving Credit Facility.

      "New Revolving Credit Facility Agreement" means the agreement that
evidences the New Revolving Credit Facility.

                                     - 11 -
<PAGE>

         "New Revolving Credit Facility Effective Date" means the date of
effectiveness of the New Revolving Credit Facility.

      "Notes" has the meaning specified in Section 2.06(e).

      "Obligations" means, as at any date of determination thereof, the sum of
the following: (a) the aggregate principal amount of Loans outstanding hereunder
on such date, plus (b) all other outstanding liabilities, obligations and
indebtedness of either Borrower under any Loan Document on such date.

      "Obligors" means WIL, WII and HOC.

      "October 2003 Debenture Indenture" means the Indenture dated as of October
1, 2003, among WIL, as the issuer, WII, as the guarantor, and Deutsche Bank
Trust Company Americas, as Trustee, as amended and supplemented to the Effective
Date.

      "October 2003 Debentures" means WIL's debentures issued pursuant to the
October 2003 Debenture Indenture, which are guaranteed by WII.

      "Other Taxes" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies, other
than Excluded Taxes, arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect to, this
Agreement, but only to the extent that any of the foregoing is imposed by (i)
Bermuda, Barbados, the Republic of Hungary or the United States or any other
jurisdiction in which WIL is Redomesticated or is resident for tax purposes with
respect to a Foreign Lender or (ii) Bermuda, Barbados, the Republic of Hungary
or any other jurisdiction (other than the United States) in which WIL is
Redomesticated or is resident for tax purposes with respect to a Lender which is
not a Foreign Lender.

      "Participant" has the meaning specified in Section 11.06(c).

      "Past Due Rate" means, on any day, a rate per annum equal to (a) for ABR
Borrowings, the applicable Alternate Base Rate plus 2% and (b) for Eurodollar
Borrowings, the applicable Adjusted LIBO Rate plus 2%.

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

      "Performance Level" means a reference to one of Performance Level I,
Performance Level II, Performance Level III, Performance Level IV or Performance
Level V.

      "Performance Level I" means, at any date of determination, WIL shall have
an Index Debt rating in effect on such date of A- or better by S&P and A3 or
better by Moody's.

      "Performance Level II" means, at any date of determination, (a) the
Performance Level does not meet the requirements of Performance Level I and (b)
WIL shall have an Index Debt rating in effect on such date of BBB+ or better by
S&P and Baa1 or better by Moody's.

                                     - 12 -
<PAGE>

      "Performance Level III" means, at any date of determination, (a) the
Performance Level does not meet the requirements of Performance Level I or
Performance Level II and (b) WIL shall have an Index Debt rating in effect on
such date of BBB or better by S&P and Baa2 or better by Moody's.

      "Performance Level IV" means, at any date of determination, (a) the
Performance Level does not meet the requirements of Performance Level I,
Performance Level II or Performance Level III and (b) WIL shall have an Index
Debt rating in effect on such date of BBB- or better by S&P and Baa3 or better
by Moody's.

      "Performance Level V" means, at any date of determination, the Performance
Level does not meet the requirements of Performance Level I, Performance Level
II, Performance Level III or Performance Level IV.

      "Permitted Liens" means, without duplication,

            (a) Liens, not otherwise permitted under any other provision of this
      definition, securing Indebtedness permitted under this Agreement in an
      aggregate principal amount at any time outstanding which does not exceed
      12% of WIL's Net Worth;

            (b) Liens for Taxes or unpaid utilities not yet delinquent or which
      are being contested in good faith by appropriate proceedings; provided
      that adequate reserves with respect thereto are maintained on the books of
      WIL or its Subsidiaries, as the case may be, in conformity with GAAP;

            (c) carriers', warehousemen's, mechanics', materialmen's,
      repairmen's or other like Liens arising in the ordinary course of business
      and not overdue for a period of more than 60 days or which are being
      contested in good faith by appropriate proceedings and for which adequate
      reserves have been made in accordance with GAAP;

            (d) pledges or deposits or deemed trusts in connection with workers'
      compensation, unemployment insurance, pension, employment or other social
      security legislation;

            (e) easements, rights-of-way, use restrictions, minor defects or
      irregularities in title, reservations (including reservations in any
      original grant from any government of any land or interests therein and
      statutory exceptions to title) and other similar encumbrances incurred in
      the ordinary course of business which, in the aggregate, are not
      substantial in amount and which do not in any case materially detract from
      the value of the property subject thereto or materially interfere with the
      ordinary conduct of the business of WIL or any of its Subsidiaries;

            (f) judgment and attachment Liens not giving rise to an Event of
      Default or Liens created by or existing from any litigation or legal
      proceeding that are currently being contested in good faith by appropriate
      proceedings, promptly instituted and diligently conducted, and for which
      adequate reserves have been made to the extent required by GAAP;

                                     - 13 -
<PAGE>

            (g) Liens on the assets of any entity or asset existing at the time
      such asset or entity is acquired by WIL or any of its Subsidiaries,
      whether by merger, amalgamation, consolidation, purchase of assets or
      otherwise; provided that such Liens (i) are not created, incurred or
      assumed by such entity in contemplation of such entity's being acquired by
      WIL or any of its Subsidiaries; (ii) do not extend to any other assets of
      WIL or any of its Subsidiaries; and (iii) the Indebtedness secured by such
      Lien is permitted pursuant to this Agreement;

            (h) Liens securing Indebtedness of WIL or its Subsidiaries not
      prohibited by Section 7.04 incurred to finance the acquisition of fixed or
      capital assets, provided that (i) such Liens shall be created not more
      than 90 days after the acquisition of such fixed or capital assets, (ii)
      such Liens do not at any time encumber any property other than the
      property financed by such Indebtedness and (iii) the Liens are not
      modified to secure other Indebtedness and the amount of Indebtedness
      secured thereby is not increased;

            (i) Liens incurred to secure the performance of tenders, bids,
      leases, statutory obligations, surety and appeal bonds, government
      contracts, performance and return-of-money bonds and other obligations of
      a like nature incurred in the ordinary course of business (exclusive of
      obligations for the payment of borrowed money);

            (j) leases or subleases granted to others not interfering in any
      material respect with the business of WIL or any of its Subsidiaries;

            (k) Liens to secure obligations arising from statutory or regulatory
      requirements;

            (l) any interest or title of a lessor in property subject to any
      Capitalized Lease Obligation or operating lease which, in each case, is
      permitted under this Agreement;

            (m) Liens in favor of collecting or payor banks having a right of
      setoff, revocation, refund or chargeback with respect to money or
      instruments of WIL or any of its Subsidiaries on deposit with or in
      possession of such bank; and

            (n) any renewal or refinancing of or substitution for, or any
      extension or modification of any maturity date for any Indebtedness
      secured by, any Lien permitted by any of the preceding clauses; provided
      that the debt secured is not increased nor the Lien extended to any
      additional assets.

      "Person" means any individual, corporation, company, limited or general
partnership, limited liability company, joint venture, association, joint stock
company, trust, unincorporated organization or other entity, or any Governmental
Authority.

      "Plan" means an employee pension benefit plan which is covered by Title IV
of ERISA or subject to the minimum funding standards under Section 412 of the
Code and is either (a) maintained by WIL or any ERISA Affiliate for employees of
WIL or any ERISA Affiliate or (b) maintained pursuant to a collective bargaining
agreement or any other arrangement under which more than one employer makes
contributions and to which WIL or any ERISA Affiliate is then

                                     - 14 -
<PAGE>

making or accruing an obligation to make contributions or has within the
preceding five plan years made contributions.

      "Pricing Schedule" means the Pricing Schedule attached hereto, which
Pricing Schedule shall be, on the New Revolving Credit Facility Effective Date,
automatically (without any further action by any party hereto) deemed to be
amended and restated such that, for any given Performance Level, (i) the
Facility Fee for such Performance Level after giving effect to such deemed
amendment and restatement shall be the same as the Facility Fee for such
Performance Level prior to giving effect to such deemed amendment and
restatement, (ii) the sum of the Facility Fee and the Applicable Margin for such
Performance Level after giving effect to such deemed amendment and restatement
shall equal the sum of the facility fee and the applicable margin for the
equivalent performance level contained in the New Revolving Credit Facility
Agreement, and (iii) the Utilization Fee for such Performance Level shall equal
the utilization fee for the equivalent performance level contained in the New
Revolving Credit Facility Agreement (it being the intention of the parties
hereto that on the New Revolving Credit Facility Effective Date, amounts loaned
under this Agreement will be subject to the same "all-in drawn spread" as
amounts loaned under the New Revolving Credit Facility, but that commitments to
lend may or may not be subject to the same rates of compensation as commitments
to lend under the New Revolving Credit Agreement). The Administrative Agent
shall replace the Pricing Schedule attached hereto with a replacement Pricing
Schedule that evidences the changes described above as soon after the New
Revolving Credit Facility Effective Date as is reasonably practicable, and the
Administrative Agent shall distribute a copy of such replacement Pricing
Schedule to all parties hereto.

      "Redemption" means, at any time, the redemption of all the Zero Coupon
Debentures outstanding at such time.

      "Redemption Borrowing" means the Borrowing comprised of Loans, the
proceeds of which will be used to fund (i) the Redemption or (ii) the repurchase
of common shares or other equity securities issued by WIL, provided that such
shares or securities are cancelled, and not held in treasury for reissuance,
immediately following the repurchase thereof.

      "Redemption Borrowing Date" means the date on which the Loans comprising
the Redemption Borrowing are made.

      "Redomestication" means:

            (a) any amalgamation, merger, conversion or consolidation of WIL or
      WII with or into any other Person, or of any other Person with or into WIL
      or WII, or the sale or other disposition (other than by lease) of all or
      substantially all of its assets by WIL or WII to any other Person,

            (b) any continuation, discontinuation, amalgamation, merger,
      conversion, consolidation or domestication or similar action with respect
      to WIL or WII pursuant to the law of the jurisdiction of its organization
      and of any other jurisdiction, or

            (c) the formation of a Person that becomes, as part of the
      transaction, the owner of 100% of the Capital Stock of WIL (the "New
      Parent"),

                                     - 15 -
<PAGE>

if as a result thereof

            (x) in the case of any action specified in clause (a), the entity
      that is the surviving, resulting or continuing Person in such merger,
      amalgamation, conversion or consolidation, or the transferee in such sale
      or other disposition,

            (y) in the case of any action specified in clause (b), the entity
      that constituted such Obligor, immediately prior thereto (but disregarding
      for this purpose any change in its jurisdiction of organization), or

            (z) in the case of any action specified in clause (c), the New
      Parent

(in any such case the "Surviving Person") is a corporation or other entity,
validly incorporated or formed and existing in good standing (to the extent the
concept of good standing is applicable) under the laws of Delaware or another
State of the United States or under the laws of the United Kingdom, The Kingdom
of the Netherlands or (with the consent of the Required Lenders, such consent
not to be unreasonably withheld) under the laws of any other jurisdiction, whose
Capital Stock of each class issued and outstanding immediately following such
action, and giving effect thereto, shall be beneficially owned by the same
Persons, in the same percentages, as was the Capital Stock of the entity
constituting WIL immediately prior thereto and, if the Surviving Person is WII
or the New Parent, the Surviving Person continues to be Sowned, directly or
indirectly, 100% by Persons who were shareholders of WIL immediately prior to
such transaction and the Surviving Person shall have delivered to the
Administrative Agent (i) a certificate to the effect that, both before and after
giving effect to such transaction, no Default or Event of Default exists, (ii)
an opinion, reasonably satisfactory in form, scope and substance to the
Administrative Agent, of counsel reasonably satisfactory to the Administrative
Agent, addressing such matters in connection with the Redomestication as the
Administrative Agent or any Lender may reasonably request, and (iii) if the
Surviving Person is the New Parent, a guaranty of the Obligations in form and
substance reasonably satisfactory to the Administrative Agent.

      "Reference Bank" means UBS AG, Stamford Branch.

      "Register" has the meaning specified in Section 11.06(b)(iv).

      "Regulation D" means Regulation D of the Board (respecting reserve
requirements), as the same is from time to time in effect, and all official
rulings and interpretations thereunder or thereof.

      "Regulation T" means Regulation T of the Board (respecting eligible
securities and margin requirements), as the same is from time to time in effect,
and all official rulings and interpretations thereunder or thereof.

      "Regulation U" means Regulation U of the Board (respecting margin credit
extended by banks), as the same is from time to time in effect, and all official
rulings and interpretations thereunder or thereof.

                                     - 16 -
<PAGE>

      "Regulation X" means Regulation X of the Board (respecting borrowers who
obtain margin credit), as the same is from time to time in effect, and all
official rulings and interpretations thereunder or thereof.

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

      "Reportable Event" means an event described in Section 4043(c) of ERISA
with respect to a Plan as to which the 30 day notice requirement has not been
waived by the PBGC.

      "Required Lenders" means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing at least fifty-one percent (51%)
of the sum of the total Revolving Credit Exposures and unused Commitments at
such time.

      "Requirement of Law" means, as to any Person, any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

      "Responsible Officer" means, with respect to any Obligor, the president,
the chief financial officer, the controller or any vice president of such
Obligor, or an individual specifically authorized by the Board of Directors of
such Obligor to sign on behalf of such Obligor.

      "Revolving Credit Exposure" means, with respect to any Lender at any time,
the outstanding principal amount of such Lender's Loans at such time.

      "S&P" means Standard & Poor's Ratings Group, a division of McGraw-Hill,
Inc.

      "Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject, with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred
to as "eurocurrency liabilities" in Regulation D of the Board). Such reserve
percentages shall include those imposed pursuant to such Regulation D.
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

      "Subsidiary" of a Person means (a) a company or corporation a majority of
whose Voting Stock is at the time, directly or indirectly, owned by such Person,
by one or more subsidiaries of such Person or by such Person and one or more
subsidiaries of such Person, (b) a partnership in which such Person or a
subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if such Person or its subsidiary is
entitled to receive

                                      -17-
<PAGE>

more than 50% of the assets of such partnership upon its dissolution, or (c) any
other Person (other than a corporation or partnership) in which such Person,
directly or indirectly, at the date of determination thereof, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of
a majority of the directors or other governing body of such Person. Unless the
context otherwise clearly requires, references in this Agreement to a
"Subsidiary" or the "Subsidiaries" refer to a Subsidiary or the Subsidiaries of
WIL.

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

      "Termination Date" means the earlier of (a) the Maturity Date and (b) the
earlier date of the acceleration of the maturity of the Obligations pursuant to
Section 8.01.

      "Total Capitalization" means, for any Person, at the date of determination
thereof, the sum of (a) Consolidated Indebtedness of such Person, plus (b) Net
Worth of such Person.

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

      "Utilization Fee" means the per annum rate specified in Section 2.09(c),
as determined under the heading "Utilization Fee" in the definition of
"Applicable Rate" and based upon the ratings by Moody's and S&P, respectively,
applicable on such date to the Index Debt.

      "Voting Stock" means, with respect to any Person, securities of any class
or classes of Capital Stock in such Person entitling holders thereof (whether at
all times or only so long as no senior class of stock has voting power by reason
of any contingency) to vote in the election of members of the Board of Directors
or other governing body of such Person.

      "Wholly-Owned Subsidiary" of a Person means a Subsidiary of which all
issued and outstanding Capital Stock (excluding directors' qualifying shares or
similar jurisdictional requirements) is directly or indirectly owned by such
Person.

      "WII" has the meaning specified in paragraph (b) on page one.

      "WIL" has the meaning specified in paragraph (a) on page one.

      "Zero Coupon Debentures" means the zero coupon convertible debentures due
June 30, 2020, issued by WII on August 22, 2000, pursuant to the Indenture dated
as of May 17, 1996, from WII to The Bank of New York, as Trustee, as amended and
supplemented thereafter, and guaranteed by WIL.

      SECTION 1.02. Types of Borrowings. Borrowings hereunder are distinguished
by "Type." The "Type" of a Loan refers to the determination whether such Loan is
a part of a Loan bearing interest at the Adjusted LIBO Rate or at the Alternate
Base Rate.

      SECTION 1.03. Accounting Terms; Changes in GAAP. All accounting and
financial terms used herein and not otherwise defined herein and the compliance
with each covenant

                                      -18-
<PAGE>

contained herein which relates to financial matters shall be determined in
accordance with GAAP applied on a consistent basis, except to the extent that a
deviation therefrom is expressly stated. Should there be a change in GAAP from
that in effect on the Effective Date, such that the defined terms set forth in
Section 1.01 or the covenants set forth in Article VII would then be calculated
in a different manner or with different components or would render the same not
meaningful criteria for evaluating the matters contemplated to be evidenced by
such covenants, (a) WIL and the Lenders agree, within the 60-day period
following any such change, to negotiate in good faith and enter into an
amendment to this Agreement in order to conform the defined terms set forth in
Section 1.01 or the covenants set forth in Article VII, or both, in such
respects as shall reasonably be deemed necessary by the Required Lenders so that
the criteria for evaluating the matters contemplated to be evidenced by such
covenants are substantially the same criteria as were effective prior to any
such change in GAAP, and (b) the Obligors shall be deemed to be in compliance
with such covenants during the 60-day period following any such change, or until
the earlier date of execution of such amendment, if and to the extent that the
Obligors would have been in compliance therewith under GAAP as in effect
immediately prior to such change.

      SECTION 1.04. Interpretation. (a) In this Agreement, unless a clear
contrary intention appears:

            (i) the singular number includes the plural number and vice versa;

            (ii) reference to any gender includes each other gender;

            (iii) the words "herein," "hereof" and "hereunder" and other words
      of similar import refer to this Agreement as a whole and not to any
      particular Article, Section or other subdivision;

            (iv) unless the context indicates otherwise, reference to any Person
      includes such Person's successors and assigns but, if applicable, only if
      such successors and assigns are permitted by this Agreement, including any
      Person that becomes a successor to WIL or WII as a result of a
      Redomestication, and reference to a Person in a particular capacity
      excludes such Person in any other capacity or individually, provided that
      nothing in this clause (iv) is intended to authorize any assignment not
      otherwise permitted by this Agreement;

            (v) except as expressly provided to the contrary herein, reference
      to any agreement, document or instrument (including this Agreement) means
      such agreement, document or instrument as amended, supplemented or
      modified and in effect from time to time in accordance with the terms
      thereof and, if applicable, the terms hereof, and reference to any Note or
      other note includes any note issued pursuant hereto in extension or
      renewal thereof and in substitution or replacement therefor;

            (vi) unless the context indicates otherwise, reference to any
      Article, Section, Schedule or Exhibit means such Article or Section hereof
      or such Schedule or Exhibit hereto;

                                      -19-
<PAGE>

            (vii) the word "including" (and with correlative meaning "include")
      means including, without limiting the generality of any description
      preceding such term;

            (viii) with respect to the determination of any period of time,
      except as expressly provided to the contrary, the word "from" means "from
      and including" and the word "to" means "to but excluding"; and

            (ix) reference to any law, rule or regulation means such as amended,
      modified, codified or reenacted, in whole or in part, and in effect from
      time to time.

            (b) The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

            (c) No provision of this Agreement shall be interpreted or construed
against any Person solely because that Person or its legal representative
drafted such provision.

                                   Article II
                               COMMITMENTS; LOANS

      SECTION 2.01. Loans. Subject to the terms and conditions set forth herein,
each Lender agrees to make Loans denominated in Dollars to the Borrowers from
time to time during the Availability Period in an aggregate principal amount
that shall not result in (x) such Lender's Revolving Credit Exposure exceeding
such Lender's Commitment or (y) the sum of the total Revolving Credit Exposures
exceeding the total Commitments. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrowers may borrow, prepay and
reborrow Loans. Each Lender severally agrees, subject to all of the terms and
conditions of this Agreement to make Loans as follows:

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

            (b) Subject to Section 2.11, each Borrowing shall be comprised
entirely of ABR Loans or Eurodollar Loans as a Borrower may request in
accordance herewith. Each Lender at its option may make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided that any exercise of such option shall not affect the joint and
several obligation of the Borrowers to repay such Loan in accordance with the
terms of this Agreement.

            (c) At the commencement of each Interest Period for any Eurodollar
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $3,000,000 and not less than $3,000,000. At the time that each ABR
Borrowing is made, such ABR Borrowing shall be in an aggregate amount that is an
integral multiple of $500,000 and not less than $1,000,000; provided that an ABR
Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the total Commitments. Borrowings of more than one Type

                                      -20-
<PAGE>

may be outstanding at the same time; provided that there shall not at any time
be more than a total of seven Eurodollar Borrowings outstanding.

            (d) Notwithstanding any other provision of this Agreement, no
Borrower shall be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Maturity Date.

      SECTION 2.02. Requests for Loans. To request a Borrowing, a Borrower shall
deliver, by hand delivery or telecopier, a duly completed and executed Borrowing
Request to the Administrative Agent, who shall promptly thereafter notify the
Lenders, of such request (a) in the case of a Eurodollar Borrowing, not later
than 11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00
a.m., New York City time, on the date of the proposed Borrowing. Each such
Borrowing Request shall be irrevocable and shall specify the following
information in compliance with Section 2.01:

            (i) the aggregate amount of the requested Borrowing;

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

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

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

            (v) the location and number of the account of the requesting
      Borrower to which funds are to be disbursed, which shall comply with the
      requirements of Section 2.03.

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

      SECTION 2.03. Funding of Borrowings.

            (a) Each Lender shall make each Loan to be made by it hereunder on
the proposed date thereof by wire transfer of immediately available funds by
12:00 noon, New York City time for Borrowings consisting of Eurodollar Loans,
and 1:00 p.m. New York City time for Borrowings consisting of ABR Loans, to the
account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders. The Administrative Agent shall make such Loans
available to the requesting Borrower by promptly crediting the amounts so
received from the Lenders, in like funds, to an account of such Borrower
designated by such Borrower in the applicable Borrowing Request; provided that,
if a Borrowing shall not occur on such date

                                      -21-
<PAGE>

because any condition precedent herein specified shall not have been met, the
Administrative Agent shall return the amounts so received from the Lenders to
the respective Lenders.

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

      SECTION 2.04. Interest Elections.

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

            (b) To make an election pursuant to this Section, a Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.02 if such Borrower were
requesting a Borrowing of the Type resulting from such election to be made on
the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Interest Election Request in
the form of Exhibit E or such other form approved by the Administrative Agent,
in each case signed by such Borrower.

            (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02:

            (i) the Borrowing to which such Interest Election Request applies
      and, if different options are being elected with respect to different
      portions thereof, the portions thereof to be allocated to each resulting
      Borrowing (in which case the information to be

                                      -22-
<PAGE>

      specified pursuant to clauses (iii) and (iv) below shall be specified for
      each resulting Borrowing);

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

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

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

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

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

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

      SECTION 2.05. Optional Termination and Reduction of Commitments.

            (a) WIL may at any time terminate, or from time to time reduce, the
Commitments; provided that (i) each reduction of the Commitments shall be in an
amount that is an integral multiple of $1,000,000 and not less than $5,000,000
and (ii) WIL shall not terminate or reduce the Commitments if, after giving
effect to any concurrent prepayment of the Loans in accordance with Section
2.07, the Revolving Credit Exposures would exceed the total Commitments.

            (b) WIL shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) of this Section at least
three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by WIL pursuant to this
Section shall be irrevocable; provided that a notice of termination of the
Commitments delivered by WIL may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be
revoked by WIL (by notice to the Administrative Agent on or prior to the

                                      -23-
<PAGE>

specified effective date) if such condition is not satisfied. Any termination or
reduction of the Commitments shall be permanent. Each reduction of the
Commitments shall be made ratably among the Lenders in accordance with their
respective Commitments.

      SECTION 2.06. Repayment of Loans; Evidence of Debt.

            (a) The Borrowers hereby jointly and severally and unconditionally
promise to pay to the Administrative Agent for the account of each Lender the
then unpaid principal amount of each Loan on the Maturity Date.

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

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

            (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the
Borrowers, jointly and severally, to repay the Loans in accordance with the
terms of this Agreement.

            (e) Any Lender may request that Loans made by it be evidenced by a
promissory note (all of such notes being hereinafter collectively referred to as
the "Notes"). In such event, the Borrowers shall prepare, execute and deliver to
such Lender a promissory note payable, jointly and severally, to the order of
such Lender and in the form of Exhibit B. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 11.06) be represented by one or more Notes in
such form payable to the order of the payee named therein.

      SECTION 2.07. Optional Prepayment of Loans.

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

            (b) A Borrower shall notify the Administrative Agent by telephone
(promptly confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City
time, three Business Days before the date of prepayment, or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time,
one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount

                                      -24-
<PAGE>

of each Borrowing or portion thereof to be prepaid; provided that, if a notice
of prepayment is given in connection with a conditional notice of termination of
the Commitments as contemplated by Section 2.05, then such notice of prepayment
may be revoked if such notice of termination is revoked in accordance with
Section 2.05. Promptly following receipt of any such notice relating to a
Borrowing, the Administrative Agent shall advise the Lenders of the contents
thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.02. Each prepayment of a Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing. Prepayments shall be
accompanied by accrued interest to the extent required by Section 2.10. All
prepayments under this Section 2.07 shall be subject to Section 2.13.

      SECTION 2.08. Mandatory Termination and Reduction of Commitments;
Mandatory Prepayment of Loans.

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

            (b) On the date that a Change of Control of the type described in
clause (a)(iii) of the definition of such term occurs and on the date that is 15
days after the occurrence of any other type of Change of Control, the
Commitments shall terminate and the Borrowers, jointly and severally, shall
prepay the principal amount of the Loans and all accrued and unpaid interest
thereon in immediately available funds.

            (c) Within 30 days of receipt by an Obligor of the Net Cash Proceeds
of any Capital Markets Takeout Financing, an amount equal to the lesser of (i)
100% of such Net Cash Proceeds and (ii) a portion of such Net Cash Proceeds
equal to the aggregate amount of Loans then outstanding shall be applied to
prepay the Loans then outstanding, and the Commitments shall be permanently
reduced by an amount equal to 100% of such Net Cash Proceeds. Each such
reduction of the Commitments shall be made ratably among the Lenders in
accordance with their respective Commitments.

            (d) If the New Revolving Credit Facility provides for commitments by
the lenders party thereto greater than $500,000,000 in the aggregate, upon
effectiveness of such New Revolving Credit Facility, the Commitments shall be
permanently reduced by an amount equal to the difference between the aggregate
amount of the commitments under such New Revolving Credit Facility and
$500,000,000. Such reduction of the Commitments shall be made ratably among the
Lenders in accordance with their respective Commitments.

            (e) If the Acquisition is not consummated on or prior to December
31, 2005, on January 1, 2006, the Commitments shall be permanently reduced by an
amount equal to $600,000,000. Such reduction of the Commitments shall be made
ratably among the Lenders in accordance with their respective Commitments.

      SECTION 2.09. Fees.

            (a) The Borrowers, jointly and severally, agree to pay to the
Administrative Agent for the account of each Lender a facility fee (the
"Facility Fee"), which shall accrue at the Facility Fee Rate on the daily amount
of the Commitment of such Lender (whether used or

                                      -25-
<PAGE>

unused) during the period from and including the Effective Date to but excluding
the date on which such Lender ceases to have any Revolving Credit Exposure.
Accrued Facility Fees shall be payable in arrears on the last day of March,
June, September and December of each year and on the date on which the
Commitments terminate, commencing on the first such date to occur after the date
hereof; provided that any Facility Fees accruing after the date on which the
Commitments terminate shall be payable on demand. All Facility Fees shall be
computed on the basis of a year of 365 or 366 days, as applicable, and shall be
payable for the actual number of days elapsed (including the first day but
excluding the last day).

            (b) The Borrowers, jointly and severally, agree to pay to the
Administrative Agent, for its own account, fees payable in the amounts and at
the times separately agreed upon between WIL and the Administrative Agent.

            (c) The Borrowers, jointly and severally, agree to pay to the
Administrative Agent for the account of each Lender a utilization fee (the
"Utilization Fee") which shall accrue (i) during the period from and including
the Effective Date to but excluding the New Revolving Credit Facility Effective
Date, at the Applicable Rate on the daily amount of the Revolving Credit
Exposure of such Lender at all times when the amount of the total Revolving
Credit Exposures exceeds $600,000,000 (provided that the Utilization Fee shall
only accrue on that portion of the total Revolving Credit Exposure that exceeds
$600,000,000) and (ii) from and after the New Revolving Credit Facility
Effective Date, at the Applicable Rate on the daily amount of the Revolving
Credit Exposure of such Lender at all times when the amount of the total
Revolving Credit Exposures exceeds 50% of the total Commitments. Utilization
Fees shall be computed on the basis of a year of 360 days and shall be payable
in arrears on the last day of March, June, September and December of each year
and the Maturity Date.

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

      SECTION 2.10. Interest.

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

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

            (c) Notwithstanding the foregoing, if any principal of or interest
on any Loan or any fee or other amount payable by the Borrowers hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Borrowings as provided in paragraph (a) of this Section.

                                      -26-
<PAGE>

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

            (e) All interest hereunder shall be computed on the basis of a year
of 360 days, except that interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Base Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent,
and such determination shall be presumed correct absent manifest error.

            SECTION 2.11. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

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

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

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

            SECTION 2.12. Increased Costs.

            (a) If any Change in Law shall:

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

            (ii) impose on any Lender or the London interbank market any other
      condition affecting this Agreement or Eurodollar Loans made by such
      Lender;

                                      -27-
<PAGE>

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to reduce the amount of any sum received or
receivable by such Lender hereunder (whether of principal, interest or
otherwise), then the Borrowers, jointly and severally, shall pay to such Lender
such additional amount or amounts as shall compensate such Lender for such
additional costs incurred or reduction suffered.

            (b) If any Lender determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return
on such Lender's capital or on the capital of such Lender's holding company, if
any, as a consequence of this Agreement or the Loans made by such Lender to a
level below that which such Lender or such Lender's holding company could have
achieved but for such Change in Law (taking into consideration such Lender's
policies and the policies of such Lender's holding company with respect to
capital adequacy), then from time to time the Borrowers, jointly and severally,
shall pay to such Lender such additional amount or amounts as shall compensate
such Lender or such Lender's holding company for any such reduction suffered.

            (c) A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company as specified in
paragraph (a) or (b) of this Section, along with (i) a calculation of such
amount or amounts, (ii) a description of the specific Change in Law that
justifies such amounts due, and (iii) such other pertinent information related
to the foregoing as either Borrower may reasonably request, shall be delivered
to such Borrower and shall be presumed correct absent manifest error. The
Borrowers, jointly and severally, shall pay such Lender the correct amount shown
as due on any such certificate within 10 days after receipt thereof.

            (d) Failure or delay on the part of any Lender to demand
compensation pursuant to this Section shall not constitute a waiver of such
Lender's right to demand such compensation; provided that no Borrower shall be
required to compensate a Lender pursuant to this Section for any increased costs
or reductions incurred more than 120 days prior to the date that such Lender
notifies the Borrowers of the Change in Law giving rise to such increased costs
or reductions and of such Lender's intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the 120-day period referred to above shall be
extended to include the period of retroactive effect thereof.

      SECTION 2.13. Break Funding Payments. In the event of (a) the payment of
any principal of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section
2.07(b) and is revoked in accordance therewith), or (d) the assignment of any
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by a Borrower pursuant to Section 3.03, then,
in any such event, the Borrowers, jointly and severally, shall compensate each
Lender for the loss, cost and expense attributable to such event. In the case of
a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined

                                      -28-
<PAGE>

by such Lender to be the excess, if any, of (i) the amount of interest which
would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Borrowers and shall be presumed correct absent manifest error, and shall set
forth a calculation of such amounts and such other information as either
Borrower may reasonably request. The Borrowers, jointly and severally, shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

      SECTION 2.14. Agreement to Defer Exercise of Right of Contribution, Etc.
Notwithstanding any payment or payments made by a Borrower (a "Paying Borrower")
hereunder, or any setoff or application by the Administrative Agent or any
Lender of any security furnished by, or of any credits or claims against, such
Paying Borrower, if an Event of Default has occurred and is continuing, such
Paying Borrower will not assert or exercise any rights of the Administrative
Agent or any Lender or of its own, against the other Borrower to recover the
amount of any such payment, setoff or application by the Administrative Agent or
any Lender, whether by way of assertion of any claim, or exercise of any remedy
or right of subrogation, reimbursement, exoneration, contribution,
indemnification, participation or otherwise, and whether arising by contract, by
statute, under common law or otherwise, and, if an Event of Default has occurred
and is continuing, such Paying Borrower shall not have any right to exercise any
right of recourse to or any claim against assets or property of the other
Borrower for such amounts, in each case unless and until all of the Obligations
of the Borrowers have been fully and finally satisfied. If any amount shall be
paid to a Paying Borrower by the other Borrower after payment in full of the
Obligations, and the Obligations shall thereafter be reinstated in whole or in
part and the Administrative Agent or any Lender forced to repay to either
Borrower any sums received in payment of the Obligations, the obligations of
each Borrower hereunder shall be automatically pro tanto reinstated and such
amount shall be held in trust by the payee thereof for the benefit of the
Administrative Agent and the Lenders and shall forthwith be paid to the
Administrative Agent to be credited and applied to the Obligations, whether
matured or unmatured.

                                  Article III
                       PAYMENTS; PRO RATA TREATMENT; TAXES

      SECTION 3.01. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.
(a) Each Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest or fees, or of amounts payable under Section
2.12, 2.13 or 3.02, or otherwise) prior to 12:00 noon, New York City time, on
the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the
discretion of the Administrative Agent, be deemed to have been received on the
next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to

                                      -29-
<PAGE>

the Administrative Agent at its offices at 677 Washington Boulevard, Stamford,
Connecticut, except that payments pursuant to Sections 2.12, 2.13, 3.02 and
11.04 shall be made directly to the Persons entitled thereto. The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof. If
any payment hereunder shall be due on a day that is not a Business Day, the date
for payment shall be extended to the next succeeding Business Day, and, in the
case of any payment accruing interest, interest thereon shall be payable for the
period of such extension. All payments hereunder shall be made in dollars.

            (b) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, interest and
fees then due hereunder, such funds shall be applied (i) first, towards payment
of interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, towards payment of principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

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

            (d) Unless the Administrative Agent shall have received notice from
a Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders hereunder that such Borrower shall not make
such payment, the Administrative Agent may assume that such Borrower has made
such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders the amount due. In such event, if a
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at

                                      -30-
<PAGE>

the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

            (e) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.03(b) or 3.01(d), then the Administrative Agent may,
in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender's obligations under such Sections until all such
unsatisfied obligations are fully paid.

      SECTION 3.02. Taxes.

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

            (b) The Borrowers, jointly and severally, shall indemnify the
Administrative Agent and each Lender, within 20 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent or such Lender, as the case may be, on or with respect
to any payment by or on account of any obligation of a Borrower hereunder
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Borrowers by a Lender, or by the
Administrative Agent on its own behalf or on behalf of a Lender, shall be
presumed correct absent manifest error.

            (c) Any Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which a Borrower is located
or treated as located for income Tax purposes, or any treaty to which any such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to such Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by such
Borrower as shall permit such payments to be made without withholding or at a
reduced rate.

            (d) If the Administrative Agent or a Lender determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes paid by a
Borrower or with respect to which a Borrower has paid additional amounts
pursuant to this Section 3.02, it shall pay over such refund to such Borrower
(but only to the extent of indemnity payments made, or additional amounts paid,
by such Borrower under this Section 3.02 with respect to the Taxes or Other
Taxes

                                      -31-
<PAGE>

giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided that each Borrower, upon the request of the Administrative
Agent or such Lender, agrees to repay promptly the amount paid over to such
Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority with respect to such amount) to the Administrative Agent
or such Lender in the event the Administrative Agent or such Lender is required
to repay such refund to such Governmental Authority. This Section shall not be
construed to require the Administrative Agent or any Lender to make available
its Tax returns (or any other information relating to its Taxes which it deems
confidential) to either Borrower or any other Person.

            (e) Without limiting the generality of the foregoing, each Foreign
Lender shall deliver to each Borrower and the Administrative Agent on the
Effective Date or upon the effectiveness of any Assignment and Assumption by
which it becomes a party to this Agreement (i) two duly completed copies of
United States Internal Revenue Service Form W-8ECI, W 8BEN, W-8EXP or W-8IMY or
other applicable governmental form, as the case may be, certifying in each case
that such Lender is entitled to receive payments under this Agreement and the
Notes payable to it without deduction or withholding of any United States
federal income Taxes, as if each Borrower were incorporated under the laws of
the United States or a State thereof, and (ii) any other governmental forms
which are necessary or required under an applicable Tax treaty or otherwise by
law to eliminate any withholding Tax or which have been reasonably requested by
the Borrowers. Each Lender which delivers to the Borrowers and the
Administrative Agent a Form W-8ECI, W-8BEN, W-8EXP or W-8IMY or other applicable
governmental form pursuant to the preceding sentence further undertakes to
deliver to the Borrowers and the Administrative Agent two further copies of such
form on or before the date that any such form expires (currently, three
successive calendar years for Form W-8BEN or Form W-8ECI) or becomes obsolete or
after the occurrence of any event requiring a change in the most recent form so
delivered by it, and such amendments thereto or extensions or renewals thereof
as may reasonably be requested by a Borrower and the Administrative Agent, in
each case certifying that such Lender is entitled to receive payments under this
Agreement without deduction or withholding of any United States federal income
Taxes, unless an event (including any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be
required which renders all such forms inapplicable or which would prevent such
Lender from duly completing and delivering any such form with respect to it and
such Lender advises the Borrowers and the Administrative Agent that it is not
capable of receiving payments without any deduction or withholding of United
States federal income Taxes and in any such event, each Borrower shall withhold
Taxes at the rate and in the manner required by the laws of the United States
with respect to payments made to such a Lender and shall be required to pay any
additional amounts or indemnify such a Lender pursuant to this Section 3.02 with
respect to such withheld Taxes.

            (f) The Borrowers, jointly and severally, will remit to the
appropriate Governmental Authority, prior to delinquency, all Indemnified Taxes
and Other Taxes payable in respect of any payment. Within 30 days after the date
of any payment of Indemnified Taxes or Other Taxes, the applicable Borrower will
furnish to the Administrative Agent the original or a certified copy of a
receipt evidencing payment of such Indemnified Taxes or Other Taxes or such
other evidence thereof as may be reasonably satisfactory to the Administrative
Agent.

                                      -32-
<PAGE>

      SECTION 3.03. Mitigation Obligations; Replacement of Lenders. (a) If any
Lender requests compensation under Section 2.12, or if a Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.02, then such Lender shall use
reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.12 or 3.02, as the case may be, in the future and
(ii) would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender. The Borrowers hereby, jointly
and severally, agree to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

            (b) If (i) any Lender requests compensation under Section 2.12, or
(ii) a Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.02,
or (iii) any Lender defaults in its obligation to fund Loans hereunder, or (iv)
any Lender fails to provide its consent to a Redomestication under the laws of a
jurisdiction (other than the United Kingdom or The Kingdom of the Netherlands)
outside of the United States, then WIL may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 11.06), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (x) if such assignee is not already a Lender
hereunder, WIL shall have received the prior written consent of the
Administrative Agent, which consent shall not be unreasonably withheld, (y) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the applicable Borrower
(in the case of all other amounts) and (z) in the case of any such assignment
resulting from a claim for compensation under Section 2.12 or payments required
to be made pursuant to Section 3.02, such assignment shall result in a reduction
in such compensation or payments. A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling WIL to require such
assignment and delegation cease to apply and such Lender neither received nor
continued to claim any such compensation or payment.

                                   Article IV
                              CONDITIONS PRECEDENT

      SECTION 4.01. Conditions Precedent to the Initial Credit Event. The
obligation of each Lender to make any Loan on or after the date hereof for the
account of either Borrower is subject to the following conditions:

            (a) The Administrative Agent shall have received the following:

            (i) this Agreement executed by each party hereto;

                                      -33-
<PAGE>

            (ii) the appropriate Notes of the Borrowers, if any, payable to each
      applicable Lender, duly completed and executed and dated the Effective
      Date;

            (iii) a certificate of a Responsible Officer of WIL, dated the
      Effective Date, certifying (which certifications shall constitute
      representations and warranties made by WIL to the Lenders and the
      Administrative Agent hereunder) that, as of the Effective Date, (A) except
      for actions, suits or proceedings described in the filings made by WIL
      with the Securities and Exchange Commission pursuant to the Exchange Act,
      (1) there are no actions, suits or proceedings pending or, to the best
      knowledge of WIL, threatened against any Obligor or against any of their
      respective properties or assets that are reasonably likely to have
      (individually or collectively) a Material Adverse Effect and (2) to the
      best knowledge of WIL, there are no actions, suits or proceedings pending
      or threatened that purport to affect or pertain to the Loan Documents, any
      transactions contemplated thereby or the Acquisition; and (B) there has
      been no material adverse change since December 31, 2004 in the financial
      condition, business or operations of WIL and its Subsidiaries taken as a
      whole which could reasonably be expected to have a Material Adverse
      Effect;

            (iv) a certificate of a Responsible Officer and of the secretary or
      an assistant secretary of each Obligor, dated the date hereof and
      certifying, inter alia (A) true and complete copies of the memorandum of
      association and bye-laws or the bylaws and certificate of incorporation or
      other organizational documents, each as amended and in effect, of such
      Obligor and the resolutions adopted by the Board of Directors of such
      Obligor (1) authorizing the execution, delivery and performance by such
      Obligor of this Agreement and the other Loan Documents to which it is or
      shall be a party and the borrowing of the Loans to be made hereunder and
      (2) authorizing officers of such Obligor to execute and deliver the Loan
      Documents to which it is or shall be a party and any related documents,
      including any agreement contemplated by this Agreement, (B) the incumbency
      and specimen signatures of the officers of such Obligor executing any
      documents on its behalf and (C) (1) that the representations and
      warranties made by such Obligor in any Loan Document to which such Obligor
      is a party and which shall be delivered at or prior to the Effective Date
      are true and correct in all material respects as of the Effective Date,
      except for those that by their express terms apply to an earlier date
      which shall be true and correct in all material respects as of such
      earlier date, (2) the absence of any proceedings for the dissolution,
      liquidation or winding up of such Obligor, and (3) the absence of the
      occurrence and continuance of any Default or Event of Default;

            (v) favorable, signed opinions addressed to the Administrative Agent
      and the Lenders dated the Effective Date from (A) Fulbright & Jaworski
      L.L.P., counsel to the Obligors, (B) Conyers Dill & Pearman, special
      Bermuda counsel to WIL, and (C) Szakaly Law Firm, special Hungarian
      counsel to HOC, each given upon the express instruction of the applicable
      Obligor;

            (vi) one or more letters from CT Corporation System in form and
      substance satisfactory to the Administrative Agent and the Lenders
      evidencing the obligation of CT Corporation System to accept service of
      process in the State of New York on behalf of
<PAGE>

      each Obligor that is not authorized to do business as a foreign
      corporation in the State of New York;

            (vii) copies of the memorandum of association, articles or
      certificates of incorporation or other similar organizational documents of
      each Obligor certified as of a recent date prior to the Effective Date by
      the appropriate Governmental Authority and certificates of appropriate
      public officials as to the existence, good standing and qualification to
      do business as a foreign corporation, of each Obligor in each jurisdiction
      in which the ownership of its properties or the conduct of its business
      requires such qualification and where the failure to so qualify would,
      individually or collectively, have a Material Adverse Effect; and

            (viii) an executed copy of the Acquisition Document (including all
      exhibits, schedules and supplements thereto), accompanied by a certificate
      of a Responsible Officer of WIL to the effect that such copy is true and
      complete as of the Effective Date.

            (b) The Administrative Agent shall have received evidence
satisfactory to it that all material consents of each Governmental Authority and
of each other Person, if any, reasonably required in connection with (a) the
Loans and (b) the execution, delivery and performance of this Agreement and the
other Loan Documents have been satisfactorily obtained.

            (c) The Borrowers shall have paid (i) to the Administrative Agent
and the Lenders, as applicable, all fees and expenses agreed upon by such
parties to be paid on or prior to the Effective Date, and (ii) to Baker Botts
L.L.P. pursuant to Section 11.03 all fees and disbursements invoiced at or
before 10:00 a.m. (New York City time) on the Effective Date by said firm to the
Borrowers, on the Effective Date.

            (d) The Lenders shall have received, sufficiently in advance of the
Effective Date, all documentation and other information requested in writing by
the Administrative Agent or any Lender and required by bank regulatory
authorities under applicable "know your customer" and anti-money laundering
rules and regulations, including without limitation, the United States PATRIOT
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), including,
without limitation, the information described in Section 11.20.

      SECTION 4.02. Conditions Precedent to All Credit Events. The obligation of
the Lenders to make any Loan on or after the date hereof is subject to the
further conditions precedent that on the date such Loan is made:

            (a) The conditions precedent set forth in Section 4.01 shall have
theretofore been satisfied.

            (b) The representations and warranties set forth in Article V and in
the other Loan Documents shall be true and correct in all material respects as
of, and as if such representations and warranties were made on, the date of the
proposed Loan (unless such representation and warranty expressly relates to an
earlier date, in which case such representation and warranty shall continue to
be true and correct as of such earlier date), and the Obligors shall be deemed
to have certified to the Administrative Agent and the Lenders that such

                                     - 35 -
<PAGE>

representations and warranties are true and correct in all material respects by
a Borrower's delivery of a Borrowing Request.

            (c) The Administrative Agent shall have received a duly executed
Borrowing Request by the time and on the Business Day specified under Section
2.02.

            (d) No Default or Event of Default shall have occurred and be
continuing or would result from such Credit Event.

            (e) The Administrative Agent and the Lenders shall have received
such other approvals, opinions or documents as the Administrative Agent or the
Required Lenders may reasonably request.

The acceptance of the benefits of each Credit Event shall constitute a
representation and warranty by each of the Obligors to each of the Lenders that
all of the conditions specified in this Section 4.02 above have been satisfied
as of that time.

      SECTION 4.03. Delivery of Documents. All of the Notes, certificates, legal
opinions and other documents and papers referred to in this Article IV, unless
otherwise specified, shall be delivered to the Administrative Agent for the
account of each of the Lenders and, except for the Notes, in sufficient
counterparts or copies for each of the Lenders and shall be satisfactory in form
and substance to the Administrative Agent.

                                   Article V
                         REPRESENTATIONS AND WARRANTIES

      To induce the Lenders to enter into this Agreement and to make the Loans,
each Obligor represents and warrants as to itself, and WIL represents and
warrants as to the other Obligors (such representations and warranties to
survive any investigation and the making of the Loans), to the Lenders and the
Administrative Agent as follows:

      SECTION 5.01. Organization and Qualification. Each Obligor and each
Material Subsidiary (a) is a company, corporation, partnership, or entity having
limited liability that is duly organized or formed, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or formation,
(b) has the corporate, partnership or other power and authority to own its
property and to carry on its business as now conducted and (c) is duly qualified
as a foreign corporation or other foreign entity to do business and is in good
standing in every jurisdiction in which the failure to be so qualified would,
together with all such other failures of the Obligors and their Subsidiaries,
have a Material Adverse Effect. As of the Effective Date, the companies,
corporations and other entities named in Schedule 5.01 are all of the Material
Subsidiaries, and Schedule 5.01 accurately reflects (i) the direct owner of the
Capital Stock of each such Subsidiary and (ii) the percentage of the issued and
outstanding Capital Stock of each such Subsidiary owned by each Obligor.

      SECTION 5.02. Authorization, Validity, Etc. Each Obligor has the corporate
or other power and authority to execute, deliver and perform its obligations
hereunder and under the other Loan Documents to which it is a party and to
obtain the Loans, and all such action has been duly authorized by all necessary
corporate, partnership or other proceedings on its part or on its

                                     - 36 -
<PAGE>

behalf. This Agreement has been duly and validly executed and delivered by or on
behalf of each Obligor and constitutes valid and legally binding agreements of
such Obligor enforceable against such Obligor in accordance with the terms
hereof, and the Notes and the other Loan Documents to which such Obligor is a
party, when duly executed and delivered by or on behalf of such Obligor, shall
constitute valid and legally binding obligations of such Obligor enforceable in
accordance with the respective terms thereof and of this Agreement, except, in
each case (a) as may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or other similar laws relating to or affecting
the enforcement of creditors' rights generally, and by general principles of
equity which may limit the right to obtain equitable remedies (regardless of
whether such enforceability is a proceeding in equity or at law) and (b) as to
the enforceability of provisions for indemnification and the limitations thereon
arising as a matter of law or public policy.

      SECTION 5.03. Governmental Consents, Etc. No authorization, consent,
approval, license or exemption of or filing or registration with any
Governmental Authority, is necessary for the valid execution, delivery or
performance by any Obligor of any Loan Document to which it is a party, except
those that have been obtained and such matters relating to performance as would
ordinarily be done in the ordinary course of business after the Effective Date.

      SECTION 5.04. No Breach or Violation of Law or Agreements. Neither the
execution, delivery and performance by any Obligor of the Loan Documents to
which it is a party, nor compliance with the terms and provisions thereof, nor
the extensions of credit contemplated by the Loan Documents, (a) shall breach or
violate any applicable Requirement of Law, (b) shall result in any breach or
violation of, any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of (or the
obligation to create or impose) any Lien upon any of its property or assets
pursuant to the terms of any indenture, mortgage, deed of trust, agreement or
other instrument to which it or any of its consolidated Subsidiaries is party or
by which any property or asset of it or any of its consolidated Subsidiaries is
bound or to which it is subject, except for breaches, violations and defaults
under clauses (a) and (b) that collectively for the Obligors shall not have a
Material Adverse Effect or (c) shall violate any provision of the organizational
documents of any Obligor.

      SECTION 5.05. Title to Assets. Each Obligor and each consolidated
Subsidiary of WIL has good and indefeasible title to its assets, except for such
defects in title as would not in the aggregate have a Material Adverse Effect.
As of the Effective Date, the property of the Obligors and their Subsidiaries is
subject to no Liens, except Permitted Liens.

      SECTION 5.06. Information; Financial Statements. All information
heretofore furnished by the Obligors to the Administrative Agent or any Lender
in connection with this Agreement, when considered together with the disclosures
made herein, in the other Loan Documents and in the filings made by any Obligor
with the Securities and Exchange Commission pursuant to the Exchange Act, did
not as of the date thereof and shall not as of the date of the initial Credit
Event hereunder, when read together and taken as a whole, contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements contained therein not misleading in any material respect.

                                     - 37 -
<PAGE>

      SECTION 5.07. Investment Company Act. No Obligor nor any of its
Subsidiaries is, or is regulated as, an "investment company," as such term is
defined in the Investment Company Act of 1940 (as adopted in the United States),
as amended.

      SECTION 5.08. Public Utility Holding Company Act. No Obligor nor any of
its Subsidiaries is a non-exempt "holding company," or subject to regulation as
such, or, to the knowledge of any Obligor's officers, an "affiliate" of a
"holding company" or a "subsidiary company" of a "holding company," within the
meaning of the Public Utility Holding Company Act of 1935 (as adopted in the
United States), as amended.

      SECTION 5.09. ERISA.

            (a) Each Obligor and each ERISA Affiliate has maintained and
administered each Plan in compliance with all applicable laws except for such
instances of noncompliance as have not resulted in and would not reasonably be
expected to have a Material Adverse Effect. No Obligor nor any ERISA Affiliate
has incurred any liability pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to employee benefit plans (as defined
in Section 3 of ERISA), and no event, transaction or condition has occurred or
exists that would reasonably be expected to result in the incurrence of any such
liability by any Obligor or any ERISA Affiliate, or in the imposition of any
Lien on any of the rights, properties or assets of any Obligor or any ERISA
Affiliate pursuant to Title I or IV of ERISA Sections 401(a)(29) or 412 of the
Code, other than such liabilities or Liens as would not in the aggregate
reasonably be expected to have a Material Adverse Effect.

            (b) No accumulated funding deficiency (as defined in Section 412 of
the Code or Section 302 of ERISA), in excess of $50,000,000, whether or not
waived, exists or is expected to be incurred with respect to any Plan.

            (c) No Obligor and its ERISA Affiliates have incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
Sections 4201 or 4204 of ERISA in respect of Multiemployer Plans that in the
aggregate would reasonably be expected to have a Material Adverse Effect.

            (d) All contributions have been timely made to all employee benefit
plans, as defined in Section 3 of ERISA, except for such failures as would not
reasonably be expected to have a Material Adverse Effect.

      SECTION 5.10. Tax Returns and Payments. Each Obligor and each Material
Subsidiary has caused to be filed all federal income tax returns and other
material tax returns, statements and reports (or obtained extensions with
respect thereto) which are required to be filed and have paid or deposited or
made adequate provision in accordance with GAAP for the payment of all taxes
(including estimated taxes shown on such returns, statements and reports) which
are shown to be due pursuant to such returns, except where the failure to pay
such taxes (collectively for the Obligors and the Material Subsidiaries, taken
as a whole) would not have a Material Adverse Effect. No material income tax
liability of any Obligor or any Material Subsidiary has been asserted by the
Internal Revenue Service of the United States or any other Governmental
Authority for any taxes in excess of those already paid, except for taxes which
are

                                     - 38 -
<PAGE>

being contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP have been created on the books of the Obligors
and their Subsidiaries.

      SECTION 5.11. Requirements of Law; Environmental Matters.

            (a) The Obligors and each of their consolidated Subsidiaries are in
compliance with all Requirements of Law, applicable statutes, regulations and
orders of, and all applicable restrictions imposed by, all Governmental
Authorities in respect of the conduct of its business and the ownership of their
property, except for such non-compliances which, in the aggregate, would not
have a Material Adverse Effect.

            (b) WIL monitors, in the ordinary course of its business, the effect
of existing Environmental Laws, and each claim asserted against it, the other
Obligors, and any of their Subsidiaries by any Governmental Authority alleging
potential liability or responsibility for violation of any Environmental Law, on
its business operations and properties. As a result thereof, WIL have reasonably
concluded that such Environmental Laws and any such claims would not, in the
aggregate, have a Material Adverse Effect.

      SECTION 5.12. Purpose of Loans.

            (a) All proceeds of the Loans shall be used by the Borrowers (i) to
fund the Acquisition, (ii) to fund (A) the Redemption or (B) the repurchase of
common shares or other equity securities issued by WIL (provided that such
shares or securities are cancelled, and not held in treasury for reissuance,
immediately following the repurchase thereof) or (iii) to refinance commercial
paper issued by either Borrower or the Guarantor. Neither the Administrative
Agent nor any Lender shall have any responsibility as to the use of any proceeds
of the Loans.

            (b) None of the proceeds of the Loans were or shall be used directly
or indirectly for the purpose of buying or carrying any "margin stock" within
the meaning of Regulation U (herein called "margin stock") or for the purpose of
reducing or retiring any indebtedness which was originally incurred to buy or
carry a margin stock, or for any other purpose which might constitute this
transaction a "purpose" credit within the meaning of Regulation U. No Obligor
nor any agent acting on its behalf has taken or shall take any action which
might cause this Agreement or any other Loan Document to violate Regulation T, U
or X, or any other regulation of the Board or to violate the Exchange Act.
Margin stock did not on the Effective Date, and does not now, constitute more
than 25% of the assets of any Obligor.

      SECTION 5.13. Designation of the Obligations. The Obligations under this
Agreement and under the other Loan Documents are pari passu with Indebtedness
under the May 1996 Debenture Indenture and the October 2003 Debenture Indenture.

      SECTION 5.14. No Default. No Default or Event of Default has occurred and
is continuing

                                     - 39 -
<PAGE>

                                   Article VI
                              AFFIRMATIVE COVENANTS

      Each of WIL and WII covenants and agrees that prior to the termination of
this Agreement it shall duly and faithfully perform, and (as applicable) cause
its Subsidiaries to perform, each and all of the following covenants:

      SECTION 6.01. Information Covenants. Each of WIL and WII shall furnish or
cause to be furnished to the Administrative Agent and each Lender:

            (a) As soon as available, and in any event within 45 days after the
end of each of the first three quarterly accounting periods in each fiscal year
the Quarterly Report on Form 10 Q, or its equivalent, of WIL; provided that WIL
shall be deemed to have furnished said Quarterly Report on Form 10-Q for
purposes of this Section 6.01(a) if the same shall have timely been made
available on "EDGAR" and/or on its home page on the worldwide web (as the date
of this Agreement located at www.weatherford.com) and complied with Section
4.01(c) in respect thereof.

            (b) As soon as available, and in any event within 90 days after the
close of each fiscal year, the Annual Report, the Form 10 K, or its equivalent,
of WIL, for such fiscal year and certified by Ernst & Young LLP or other
independent certified public accountants of recognized national standing
reasonably acceptable to the Administrative Agent and the Required Lenders,
whose certification shall be without qualification or limitation; provided that
(x) WIL shall be deemed to have furnished said Annual Report on Form 10-K for
purposes of this Section 6.01(b) if the same shall have timely been made
available on "EDGAR" and/or on its home page on the worldwide web (at the date
of this Agreement located at www.weatherford.com) and complied with Section
4.01(c) in respect thereof, and (y) if said Annual Report on Form 10-K contains
the report of such independent public accountants (without qualification or
exception, and to the effect, as specified above), neither WIL nor WII shall be
required to deliver such report.

            (c) Promptly after the same become publicly available, (whether on
"EDGAR" or WIL's homepage on the worldwide web or otherwise), notice to the
Administrative Agent of the filing of all periodic reports, and all amendments
to such reports, on Form 10-K or Form 10-Q, and all definitive proxy statements
filed by any Obligor or any of its Subsidiaries with the Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, or
distributed by WIL to its shareholders generally, as the case may be (and in
furtherance of the foregoing, WIL will give to the Administrative Agent prompt
written notice of any change at any time or from time to time of the location of
WIL's home page on the worldwide web).

            (d) Promptly, and in any event within ten Business Days after any
Responsible Officer of such Obligor obtains knowledge of

                                     - 40 -
<PAGE>

            (i) any event or condition (excluding events or conditions
      constituting generalized market conditions affecting WIL and its
      competitors in substantially the same way) which would reasonably be
      expected to have a Material Adverse Effect; or

            (ii) any event or condition which constitutes a Default or an Event
      of Default; or

            (iii) the occurrence of a Change of Control or Change of Control
      Event;

a notice of such event or condition, specifying the nature thereof.

            (e) At the time of the delivery of the financial statements provided
for in Sections 6.01(a) and 6.01(b), (i) a certificate of a Responsible Officer
of WIL in the form of Exhibit C and (ii) to the extent there has been any change
in the information previously furnished to the Administrative Agent and the
Lenders on Schedule 5.01, a revised Schedule 5.01.

            (f) Promptly, and in any event within 30 days after any Responsible
Officer of such Obligor obtains knowledge thereof, notice:

            (i) of the occurrence or expected occurrence of any material
      Reportable Event with respect to any Plan, a failure to make any material
      required contribution to a Plan, any Lien in favor of the PBGC or a Plan,
      or any withdrawal from, or the termination, reorganization or insolvency
      (within the meaning of such terms as used in ERISA) of any Multiemployer
      Plan, or

            (ii) of the institution of proceedings or the taking of any other
      action by the PBGC or WIL or any ERISA Affiliate or any Multiemployer Plan
      with respect to the withdrawal from, or the terminating, reorganization or
      insolvency (within the meaning of such terms as used in ERISA) of, any
      Plan which termination, reorganization or insolvency would reasonably be
      expected to have a Material Adverse Effect, except that no notice shall be
      required with respect to the merger of a defined contribution plan of one
      ERISA Affiliate into a defined contribution plan of another ERISA
      Affiliate.

            (g) Promptly after effectiveness thereof, notice and copies of any
material amendments, waivers or supplements to the Acquisition Document.

            (h) From time to time and with reasonable promptness, such other
information or documents (financial or otherwise) with respect to any Obligor or
any of its Subsidiaries as the Administrative Agent or any Lender through the
Administrative Agent may reasonably request.

      SECTION 6.02. Books, Records and Inspections. Such Obligor shall, and
shall cause each of its Material Subsidiaries and, to the extent it is not a
Material Subsidiary, HOC, to permit, or cause to be permitted, any Lender, upon
written notice, to visit and inspect any of the properties of such Obligor and
its Subsidiaries, to examine the books and financial records of such Obligor and
its Subsidiaries and to discuss the affairs, finances and accounts of any such
Obligor with a Responsible Officer of such Obligor, such Subsidiaries, all at
such reasonable times and as often as such Lender(s), through the Administrative
Agent, may reasonably request.

                                     - 41 -
<PAGE>

      SECTION 6.03. Insurance and Maintenance of Properties. Such Obligor shall,
and shall cause each of the Material Subsidiaries and, to the extent it is not a
Material Subsidiary, HOC, to maintain or cause to be maintained insurance with
respect to its property and business against such liabilities and risks, in such
types and amounts and with such deductibles or self-insurance risk retentions,
in each case as are in accordance with normal industry practice.

      SECTION 6.04. Payment of Taxes and other Claims. Such Obligor shall, and
shall cause each of the Material Subsidiaries and, to the extent it is not a
Material Subsidiary, HOC, to pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, all taxes, assessments and governmental
charges levied or imposed upon such Obligor or such Material Subsidiary or HOC,
as applicable, or upon the income, profits or property of such Obligor or such
Material Subsidiary or, to the extent it is not a Material Subsidiary, HOC, as
applicable, except for (i) such taxes, assessments or governmental charges as
would not, individually or in the aggregate, have a Material Adverse Effect and
(ii) any such tax, assessment or governmental charge whose amount, applicability
or validity is being contested in good faith by appropriate proceedings and for
which adequate reserves have been established in accordance with GAAP.

      SECTION 6.05. Existence. Except as expressly permitted pursuant to Section
7.02, each such Obligor shall do all things necessary to preserve and keep in
full force and effect the corporate or other existence, rights and franchises of
such Obligor and HOC.

      SECTION 6.06. ERISA Information and Compliance. Except with respect to
matters described in clauses (a), (c) and (d) below which would not reasonably
be expected to have a Material Adverse Effect, WIL shall promptly furnish to
Administrative Agent: (a) immediately upon receipt, a copy of any notice of
complete or partial withdrawal liability under ERISA and any notice from the
PBGC under ERISA of an intent to terminate or appoint a trustee to administer
any Plan, (b) if requested by the Administrative Agent, promptly after the
filing thereof with the United States Secretary of Labor or the PBGC or the
Internal Revenue Service, copies of each annual and other report with respect to
each Plan or any trust created thereunder, (c) immediately upon becoming aware
of the occurrence of any Reportable Event, or of any "prohibited transaction",
as such term is defined in Section 4975 of the Code, in connection with any Plan
or any trust created thereunder, a written notice signed by a Responsible
Officer of WIL or the applicable ERISA Affiliate specifying the nature thereof,
what action WIL or the applicable ERISA Affiliate is taking or proposes to take
with respect thereto, and, when known, any action taken by the PBGC, the
Internal Revenue Service, the Department of Labor or any other applicable
Governmental Authority with respect thereto, (d) promptly after the filing or
receiving thereof by WIL or any ERISA Affiliate, any notice of the institution
of any proceedings or other actions which may result in the termination of any
Plan, and (e) each request for waiver of the funding standards or extension of
the amortization periods required by ERISA or Section 412 of the Code promptly
after the request is submitted by WIL or any ERISA Affiliate to the Secretary of
the Treasury, the Department of Labor, the Internal Revenue Service or any other
applicable Governmental Authority. WIL covenants that it shall and shall cause
each ERISA Affiliate to comply, with respect to each Plan and Multiemployer
Plan, with all applicable provisions of ERISA and the Code, except to the extent
that any failure to comply would not reasonably be expected to have a Material
Adverse Effect.

                                     - 42 -
<PAGE>

                                  Article VII
                               NEGATIVE COVENANTS

      Each Obligor covenants and agrees with the Administrative Agent and the
Lenders that prior to the termination of this Agreement it shall duly and
faithfully perform, and cause its Subsidiaries to perform, each and all of the
following covenants:

      SECTION 7.01. Material Change in Business. WIL shall not, and shall not
permit its Material Subsidiaries and, to the extent it is not a Material
Subsidiary, HOC, to engage in any material business substantially different from
those carried on by WIL and its consolidated Subsidiaries taken as a whole on
the date hereof and after giving pro forma effect to the Acquisition.

      SECTION 7.02. Consolidation, Merger, or Sale of Assets, Etc. WIL shall
not, and shall not permit any consolidated Subsidiary to (x) wind up, liquidate
or dissolve its affairs, or (y) amalgamate or consolidate with, or merge into,
or sell, lease or otherwise dispose of all or substantially all of its assets
(in one transaction or a series of transactions) to, any other Person, or permit
any other Person to amalgamate or consolidate with, or merge into, or sell,
lease or otherwise dispose of all or substantially all of its assets to, it,
except that this Section 7.02 shall not prohibit any Redomestication or any of
the following transactions, or any agreement to effect the same:

            (a) if, immediately before and after giving effect thereto, no Event
of Default or Default (other than an Event of Default or Default that would
arise from such transaction under the terms of Section 8.01(i) but for the terms
of this Section 7.02(a)) shall have occurred and be continuing, any
amalgamation, consolidation or merger, or sale, lease or other disposition of
assets involving WIL or any of its consolidated Subsidiaries, provided that

            (i) in any such merger, consolidation or amalgamation involving WIL,
      either

                  (A) the entity that constituted WIL immediately prior thereto
            is the surviving, resulting or continuing Person in such merger,
            amalgamation or consolidation (in any such case, the "Survivor"), or

                  (B) if the entity that constituted WIL immediately prior
            thereto is not the Survivor, the Survivor shall execute and deliver
            to the Administrative Agent an instrument, in form and substance
            satisfactory to it, whereby the Survivor shall become a party to
            this agreement and assume all rights and obligations of WIL
            hereunder;

            (ii) in any such merger, consolidation or amalgamation involving
      WII, either

                  (A) the entity that constituted WII immediately prior thereto
            is the Survivor, or

                  (B) WII shall have amalgamated or merged with and into WIL and
            WIL shall be the Survivor, or

                                     - 43 -
<PAGE>

                  (C) if neither the entity that constituted WII immediately
            prior thereto nor WIL is the Survivor, the Survivor shall execute
            and deliver to the Administrative Agent an instrument, in form and
            substance satisfactory to it, whereby the Survivor shall become a
            party to this agreement and assume all rights and obligations of
            such WII hereunder;

            (iii) sales, leases or other dispositions of assets to Persons that
      are not consolidated Subsidiaries shall be made for fair market value as
      determined by the Board of Directors of the applicable transferor;
      provided that (i) at the time of any sale, lease or other disposition, no
      Default or Event of Default shall exist or shall result from such sale,
      lease or other disposition, and (ii) no such sale, lease or other
      disposition shall constitute a disposition of all or substantially all of
      the assets of WIL and its consolidated Subsidiaries, taken as a whole;

            (iv) in any such merger, consolidation or amalgamation not involving
      WIL or WII, either (A) a Wholly-Owned Subsidiary of WIL is the Survivor or
      (B) if the Survivor is not a Wholly-Owned Subsidiary, such merger,
      consolidation or amalgamation does not constitute a sale, lease or other
      disposition of all or substantially all of the assets of WIL and its
      consolidated Subsidiaries, taken as a whole;

            (v) in the case of any transaction specified in the foregoing
      clauses (i), (ii), (iii) or (iv), (A) WIL and its consolidated
      Subsidiaries shall be in compliance, on a pro forma basis after giving
      effect to such transaction, with the covenants contained in this Article
      VII recomputed as of the last day of the most recently ended fiscal
      quarter of WIL as if such transaction had occurred on the first day of
      each relevant period for testing such compliance, and (B) if an Obligor is
      a party to such transaction and is not the Survivor, the Administrative
      Agent shall have received an opinion reasonably satisfactory in form,
      scope and substance to the Administrative Agent, of counsel reasonably
      satisfactory to the Administrative Agent, addressing such matters in
      connection with such transaction as the Administrative Agent or such
      Lender may reasonably request, along with such other documentation as the
      Administrative Agent may reasonably request; and

            (vi) sales, leases, other dispositions and transfers of assets among
      or between the Borrowers, or among and between the Borrowers and
      Subsidiaries or among and between Subsidiaries; provided that WIL's direct
      or indirect equity interests in the transferee will be at least as great
      as its direct or indirect equity interests in the transferor immediately
      prior to such sale, lease, other disposition or transfer.

            (b) any winding up, liquidation or dissolution of any consolidated
Subsidiary if immediately before and after giving effect thereto, no Event of
Default or Default (other than an Event of Default or Default that would arise
from such transaction under the terms of Section 8.01(i) but for the terms of
this Section 7.02(b)) shall have occurred and be continuing and, in the case of
any Material Subsidiary, if in the reasonable judgment of the Board of Directors
(or other managing group) of such Material Subsidiary, such winding up,
liquidation or dissolution is in the best interests of WIL and its consolidated
Subsidiaries taken as a whole and is not materially disadvantageous to any
Lender, provided that, with respect to any winding up, liquidation or
dissolution of either HOC or WII (i) the owner of all of the Capital Stock of
such Obligor

                                     - 44 -
<PAGE>

immediately prior to such event shall be WIL, a Wholly-Owned Subsidiary of WIL,
the New Parent or a direct or indirect Wholly-Owned Subsidiary of the New Parent
and (ii) if such owner is not then an Obligor, such owner shall execute and
deliver to the Administrative Agent (A) a guaranty of the Obligations in form
and substance reasonably satisfactory to the Administrative Agent, (B) an
opinion, reasonably satisfactory in form, scope and substance to the
Administrative Agent, of counsel reasonably satisfactory to the Administrative
Agent, addressing such matters in connection with such event as the
Administrative Agent or any Lender may reasonably request and (C) such other
documentation as the Administrative Agent may reasonably request.

      SECTION 7.03. Liens. WIL shall not, and shall not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets of any kind (real or personal, tangible or
intangible) of WIL or such Subsidiary, whether now owned or hereafter acquired,
except Permitted Liens.

      SECTION 7.04. Indebtedness.

            (a) WIL shall not create, incur or assume, nor permit any of its
Subsidiaries to create, incur or assume any Indebtedness, unless each of the
Borrowers and their Subsidiaries shall be in compliance, on a pro forma basis
after giving effect to such transactions, with the covenants contained in this
Article VII recomputed as of the last day of the most recently ended fiscal
quarter of WIL as if the transaction in question had occurred on the first day
of each relevant period for testing such compliance.

            (b) In addition to and notwithstanding Section 7.04(a), the
aggregate principal amount of all Indebtedness of all Subsidiaries of WIL other
than WII and HOC at any time outstanding to any Person other than WIL and its
Subsidiaries shall not exceed 20% of WIL's Net Worth at such time.

      SECTION 7.05. Ownership of WII. Except to the extent permitted under
Section 7.02, the Persons who are the shareholders of WIL shall not at any time
own, beneficially and of record, directly or indirectly, less than 100% of the
Capital Stock (except for directors' qualifying shares) of WII.

      SECTION 7.06. Financial Covenant. WIL shall not permit its Consolidated
Indebtedness to exceed 60% of its Total Capitalization at the end of any fiscal
quarter.

      SECTION 7.07. Limitation on Transactions with Affiliates. WIL shall not,
and shall not permit any of its consolidated Subsidiaries to, directly or
indirectly, conduct any business or enter into, renew, extend or permit to exist
any transaction or series of related transactions with any Affiliate who is not
either (a) WIL or one of WIL's consolidated Subsidiaries or a Person that
becomes, pursuant to a Redomestication, a part of the consolidated group that
includes WIL, or (b) Weatherford\Al Rushaid Limited, Weatherford Saudi Arabia
Limited or Universal Compression Holdings, Inc., other than on fair and
reasonable terms (taking all related transactions into account and considering
the terms of such related transactions in their entirety) substantially as
favorable to WIL or such consolidated Subsidiary, as the case may be, as would
be available in a comparable arm's length transaction. Notwithstanding the
foregoing, the

                                     - 45 -
<PAGE>

restrictions set forth in this covenant shall not apply to (i) the payment of
reasonable and customary regular fees to directors of an Obligor who are not
employees of such Obligor; (ii) loans and advances to officers and employees of
an Obligor and its respective Subsidiaries for travel, entertainment and moving
and other relocation expenses made in direct furtherance and in the ordinary
course of business of an Obligor and its Subsidiaries; and (iii) any other
transaction with any employee, officer or director of an Obligor or any of its
Subsidiaries pursuant to employee benefit or compensation arrangements entered
into in the ordinary course of business and approved by, as applicable, the
Board of Directors of such Obligor or the Board of Directors of such Subsidiary
permitted by this Agreement.

      SECTION 7.08. Restrictions on Subsidiary Dividends. WIL shall not, nor
shall it permit any of its consolidated Subsidiaries to, enter into any
agreement or contract which limits or restricts in any way the payment of any
dividends or distributions by any consolidated Subsidiary of such Obligor to WIL
or to another consolidated Subsidiary of WIL, except that the foregoing
restrictions set forth in this Section 7.08 shall not apply to limitations or
restrictions existing under or by reason of (i) any agreement for the sale or
other disposition of all or substantially all of the equity interests in or all
or substantially all of the assets of a Subsidiary, which agreement restricts
distributions or dividends by such Subsidiary pending such sale or other
disposition, (ii) contracts and agreements outstanding on the date hereof and
(iii) any agreement or instrument governing capital stock of a Person acquired
by WIL or any of its consolidated Subsidiaries as in effect at the time of such
acquisition, which restriction or limitation (x) is not applicable to any
Person, or the properties or assets of any Person, other than the Person, or the
property or assets of such Person, so acquired and (y) is not incurred in
connection with, or in contemplation of, such acquisition.

      SECTION 7.09. The Debenture Indentures. Neither WIL nor WII shall take any
action that could result in the Obligations' failing to be classified as pari
passu with Indebtedness under the May 1996 Debenture Indenture or the October
2003 Debenture Indenture.

                                  Article VIII
                         EVENTS OF DEFAULT AND REMEDIES

      SECTION 8.01. Events of Default and Remedies. If any of the following
events ("Events of Default") shall occur and be continuing:

            (a) (i) the principal of any Loan or Note shall not be paid on the
date on which such payment is due, or (ii) any payment of interest on any such
Loan or Note or any other amount due hereunder or any other Loan Document shall
not be paid within five calendar days following the date on which such payment
of interest or such other amount is due; or

            (b) any representation or warranty made or, for purposes of Article
IV, deemed made by or on behalf of any Obligor herein, at the direction of any
Obligor or by any Obligor in any other Loan Document or in any document,
certificate or financial statement delivered in connection with this Agreement
or any other Loan Document shall prove to have been incorrect in any material
respect when made or deemed made or reaffirmed, as the case may be; or

                                     - 46 -
<PAGE>

            (c) any Obligor shall fail to perform or observe any covenant
contained in Article VII or fails to give any notice required by Section
6.01(d), 6.01(e) or 6.01(f); or

            (d) any Obligor shall fail to perform or observe any other term,
covenant or agreement contained in this Agreement (other than those specified in
Section 8.01(a), 8.01(b) or 8.01(c)) or any other Loan Document to which it is a
party and, in any event, such failure shall remain unremedied for 30 calendar
days after the earlier of (i) written notice of such failure shall have been
given to a Responsible Officer of WIL by the Administrative Agent or any Lender
or, (ii) a Responsible Officer of any Obligor becomes aware of such failure; or

            (e) any Obligor or any of its Subsidiaries (i) fails to make
(whether as primary obligor or as guarantor or other surety) any principal
payment of or interest or premium, if any, on any Indebtedness beyond any period
of grace provided with respect thereto (not to exceed 30 days), provided that
the aggregate amount of all Indebtedness as to which such a payment default
shall occur and be continuing is equal to or exceeds $100,000,000, or (ii)
defaults under any agreement or any instrument which governs the rights and
remedies of Persons holding Indebtedness of any Obligor or any of its
Subsidiaries with an aggregate face amount or aggregate amount of commitments
which is equal to or exceeds $100,000,000 (including without limitation the New
Revolving Credit Facility Agreement); or

            (f) the entry by a court having jurisdiction in the premises of (i)
a decree or order for relief in respect of any Obligor or any Material
Subsidiary in an involuntary case or proceeding under any applicable federal,
state or foreign bankruptcy, insolvency, reorganization or other similar law or
(ii) a decree or order adjudging any Obligor or any Material Subsidiary bankrupt
or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of any Obligor or any
Material Subsidiary under any applicable federal, state or foreign law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or
other similar official of any Obligor or any Material Subsidiary of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs; or

            (g) the commencement by any Obligor or any Material Subsidiary of a
voluntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by any
Obligor or any Material Subsidiary to the entry of a decree or order for relief
in respect of such Obligor or such Material Subsidiary in an involuntary case or
proceeding under any applicable federal, state or foreign bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by any
Obligor or any Material Subsidiary of a petition or answer or consent seeking
reorganization or relief under any applicable federal, state or foreign law, or
the consent by any Obligor or any Material Subsidiary to the filing of such
petition or the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or similar official of such Obligor
or such Material Subsidiary or of any substantial part of its property, or the
making by it of an assignment for the benefit of creditors, or the consent to,
approval of or the admission by any Obligor or any Material Subsidiary in
writing of its inability to pay its debts generally as they become due, or the
taking

                                     - 47 -
<PAGE>

of corporate or other action by any Obligor or any Material Subsidiary in
furtherance of any such action; or

            (h) a judgment or order shall be entered against any Obligor or any
Material Subsidiary, which with other outstanding judgments and orders entered
against the Obligors and the Material Subsidiaries equals or exceeds
$100,000,000 in the aggregate (to the extent not covered by insurance as to
which the respective insurer has acknowledged coverage), and (i) within 60 days
after entry thereof such judgment shall not have been discharged or execution
thereof stayed pending appeal or, within 60 days after the expiration of any
such stay, such judgment shall not have been discharged, or (ii) any enforcement
proceeding shall have been commenced (and not stayed) by any creditor upon such
judgment; or

            (i) other than as a result of a transaction permitted by the terms
of Section 7.02, any Loan Document shall (other than with the consent of the
Administrative Agent and the Lenders), at any time after its execution and
delivery and for any reason, cease to be in full force and effect in any
material respect, or shall be declared to be null and void, or the validity or
enforceability thereof shall be contested by any Obligor or any Obligor shall
deny that it has any or further liability or obligation thereunder; or

            (j) any Plan shall incur an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA) which (individually
or collectively) exceeds $50,000,000, whether or not waived, or a waiver of the
minimum funding standard or extension of any amortization period is sought or
granted under Section 412 of the Code with respect to a Plan; any proceeding
shall have occurred or is reasonably likely to occur by the PBGC under Section
4069(a) of ERISA to impose liability on WIL, any consolidated Subsidiary or an
ERISA Affiliate which (individually or collectively) exceeds $50,000,000; any
required contribution to a Plan or Multiemployer Plan in excess of $50,000,000
shall not have been made within 15 days of the date such contribution is due; or
WIL, any consolidated Subsidiary or any ERISA Affiliate has incurred or is
reasonably likely to incur a liability to or on account of a Plan or
Multiemployer Plan under Section 515, 4062, 4063, 4064, 4201 or 4204 of ERISA,
and there shall result (individually or collectively) from any such event or
events a material risk of either (i) the imposition of a Lien(s) upon, or the
granting of a security interest(s) in, the assets of WIL, any consolidated
Subsidiary and/or an ERISA Affiliate securing an amount(s) equal to or exceeding
$50,000,000, or (ii) WIL, any consolidated Subsidiary and/or an ERISA Affiliate
incurring a liability(ies) or obligation(s) with respect thereto equal to or
exceeding $50,000,000;

then, and in every such event (other than an event with respect to any Obligor
described in clause (f) or (g) of this Section 8.01), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrowers, take either
or both of the following actions, at the same or different times:

            (i) terminate the Commitments, and thereupon the Commitments shall
      terminate immediately, and

            (ii) declare the Loans then outstanding to be due and payable in
      whole (or in part, in which case any principal not so declared to be due
      and payable may thereafter be declared to be due and payable), and
      thereupon the principal of the Loans so declared to

                                     - 48 -
<PAGE>

      be due and payable, together with accrued interest thereon and all fees
      and other obligations of the Borrowers accrued hereunder, shall become due
      and payable immediately, without presentment, demand, protest or other
      notice of any kind, all of which are hereby waived by the Borrowers, and
      in case of any event with respect to any Obligor described in clause (f)
      or (g) of this Section 8.01, the Commitments shall automatically terminate
      and the principal of the Loans then outstanding, together with accrued
      interest thereon and all fees and other obligations of the Borrowers
      accrued hereunder, shall automatically become due and payable, without
      presentment, demand, protest or other notice of any kind, all of which are
      hereby waived by the Obligors.

      SECTION 8.02. Right of Setoff. Upon the occurrence and during the
continuance of any Event of Default, each Lender is hereby authorized at any
time and from time to time, without notice to any Obligor (any such notice being
expressly waived by each Obligor), to set off and apply any and all deposits
(general or special, time or demand, provisional or final but excluding the
funds held in accounts clearly designated as escrow or trust accounts held by
any Obligor for the benefit of Persons which are not Affiliates of any Obligor),
whether or not such setoff results in any loss of interest or other penalty, and
including all certificates of deposit, at any time held, and any other funds or
property at any time held, and other indebtedness at any time owing by such
Lender to or for the credit or the account of any Obligor against any and all of
the Obligations irrespective of whether or not such Lender or the Administrative
Agent shall have made any demand under this Agreement, the Notes or any other
Loan Document. Should the right of any Lender to realize funds in any manner set
forth above be challenged and any application of such funds be reversed, whether
by court order or otherwise, the Lenders shall make restitution or refund to the
applicable Obligor, as the case may be, pro rata in accordance with their
Commitments. Each Lender agrees to promptly notify the applicable Obligor and
the Administrative Agent after any such setoff and application, provided that
the failure to give such notice shall not affect the validity of such setoff and
application. The rights of the Administrative Agent and the Lenders under this
Section are in addition to other rights and remedies (including other rights of
setoff) which the Administrative Agent or the Lenders may have. This Section is
subject to the terms and provisions of Section 3.01(a).

      SECTION 8.03. Other Remedies. No remedy conferred herein or in any of the
other Loan Documents is to be exclusive of any other remedy, and each and every
remedy contained herein or in any other Loan Document shall be cumulative and
shall be in addition to every other remedy given hereunder and under the other
Loan Documents now or hereafter existing at law or in equity or by statute or
otherwise.

      SECTION 8.04. Application of Moneys During Continuation of Event of
Default.

            (a) So long as an Event of Default of which the Administrative Agent
shall have given notice to the Lenders shall continue, all moneys received by
the Administrative Agent (i) from any Obligor under the Loan Documents shall,
except as otherwise required by law, be distributed by the Administrative Agent
on the dates selected by the Administrative Agent as follows:

                                     - 49 -
<PAGE>

            first, to payment of the unreimbursed expenses for which the
            Administrative Agent or any Lender is to be reimbursed pursuant to
            Section 11.03 and to any unpaid fees owing to the Administrative
            Agent;

            second, to the ratable payment of accrued but unpaid interest on the
            Loans;

            third, to the ratable payment of unpaid principal of the Loans;

            fourth, to the ratable payment of all other amounts payable by the
            Obligors hereunder;

            fifth, to the ratable payment of all other Obligations, until all
            Obligations shall have been paid in full; and

            finally, to payment to the Obligors, or their respective successors
            or assigns, or as a court of competent jurisdiction may direct, of
            any surplus then remaining from such proceeds.

            (b) The term "unpaid" as used in this Section 8.04 shall mean all
Obligations outstanding as of any such distribution date as to which prior
distributions have not been made, after giving effect to any adjustments which
are made pursuant to Section 8.02 of which the Administrative Agent shall have
been notified..

                                   Article IX
                              ADMINISTRATIVE AGENT

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

      The bank serving as the Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with any Obligor or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

      The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein. Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default or an Event of Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby that the
Administrative Agent is required to exercise in writing as directed by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 11.05), and (c) except
as expressly set forth herein, the Administrative Agent shall not have any duty
to disclose, and shall not be liable for the failure to disclose, any
information relating to any of the Obligors or any of their Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required

                                     - 50 -
<PAGE>

 Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 11.05) or in the
absence of its own gross negligence, willful misconduct or unlawful acts. The
Administrative Agent shall be deemed not to have knowledge of any Default or
Event of Default unless and until written notice thereof is given to the
Administrative Agent by a Borrower or a Lender, and the Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other
than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

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

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

      Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders and WIL. Upon any such resignation, the Required
Lenders shall have the right, in consultation with WIL, to appoint a successor.
If no successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may, on behalf of the Lenders, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. The fees payable by the Borrowers to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrowers and such successor. After the
Administrative Agent's resignation hereunder, the

                                     - 51 -
<PAGE>

provisions of this Article and Sections 11.03 and 11.04 shall continue in effect
for the benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.

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

                                    Article X
                                    GUARANTY

      SECTION 10.01. Guaranty.

            (a) In consideration of, and in order to induce the Lenders to make
Loans to the Borrowers, WII hereby absolutely, unconditionally and irrevocably
guarantees in favor of all of the Lenders, the punctual payment and performance
when due, whether at stated maturity, by acceleration or otherwise, of the
Obligations and all covenants of the Borrowers, now or hereafter existing under
this Agreement and the other Loan Documents to which either Borrower is a party,
whether for principal, interest (including interest accruing or becoming owing
both prior to and subsequent to the commencement of any proceeding against or
with respect to either Borrower under any applicable bankruptcy or insolvency
law (including the Bankruptcy Code), fees, commissions, expenses (including
reasonable attorneys' fees and expenses)), indemnities, or otherwise (all such
obligations being, as applicable, the "Guaranteed Obligations"). WII agrees to
pay any and all expenses incurred by each Lender and the Administrative Agent in
enforcing this Guaranty against WII.

            (b) This Guaranty is an absolute, unconditional, present and
continuing guaranty of payment and not of collection and is in no way
conditioned upon any attempt to collect from either Borrower or any other
action, occurrence or circumstance whatsoever.

      SECTION 10.02. Continuing Guaranty.

            (a) WII guarantees that the Guaranteed Obligations shall be paid
strictly in accordance with the terms of this Agreement and the other Loan
Documents. WII agrees that, to the maximum extent permitted by applicable law,
the Guaranteed Obligations and Loan Documents to which either Borrower is a
party may be extended or renewed, and indebtedness thereunder repaid and
reborrowed in whole or in part, without notice to or assent by WII, and that WII
shall remain bound upon this Guaranty notwithstanding any extension, renewal or
other alteration of any of the Guaranteed Obligations or such Loan Documents or
any repayment and reborrowing of Loans to the Borrowers. The obligations of WII
under this Guaranty are absolute and unconditional irrespective of the value,
genuineness, validity, regularity or enforceability of

                                     - 52 -
<PAGE>

the obligations of the Borrowers under this Agreement or any other Loan Document
or any substitution, release or exchange of any other guarantee of or security
for the Obligations. To the maximum extent permitted by applicable law, except
as otherwise expressly provided in this Agreement or any other Loan Document to
which WII is a party, the obligations of WII under this Guaranty shall be
absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms hereof under any circumstances whatsoever, including:

            (i) any modification, amendment, supplement, renewal, extension for
      any period, increase, decrease, alteration or rearrangement of all or any
      part of the Guaranteed Obligations, or of this Agreement or any other Loan
      Document executed in connection herewith, or any contract or understanding
      among the Borrowers, the Administrative Agent and/or the Lenders, or any
      other Person, pertaining to the Guaranteed Obligations;

            (ii) any adjustment, indulgence, forbearance or compromise that
      might be granted or given by the Lenders to WII, either Borrower or any
      other Person liable on the Guaranteed Obligations;

            (iii) the insolvency, bankruptcy, arrangement, adjustment,
      composition, liquidation, disability, dissolution or lack of power of WII,
      either Borrower or any other Person at any time liable for the payment of
      all or part of the Guaranteed Obligations; or any dissolution or winding
      up of WII or either Borrower, or any sale, lease or transfer of any or all
      of the assets of WII or either Borrower, or any changes in the
      shareholders of WII or either Borrower, or any reorganization of WII or
      either Borrower;

            (iv) the invalidity, illegality or unenforceability of all or any
      part of the Guaranteed Obligations, or any document or agreement executed
      in connection with the Guaranteed Obligations, for any reason whatsoever,
      including the fact that (A) the Guaranteed Obligations, or any part
      thereof, exceed the amount permitted by law, (B) the act of creating the
      Guaranteed Obligations, or any part thereof is ultra vires, (C) the
      officers or representatives executing the documents or otherwise creating
      the Guaranteed Obligations acted in excess of their authority, (D) the
      Guaranteed Obligations or any part thereof violate applicable usury laws,
      (E) WII or either Borrower has valid defenses, claims, and offsets
      (whether at law or in equity, by agreement or by statute) which render the
      Guaranteed Obligations wholly or partially uncollectible from WII or
      either Borrower, (F) the creation, performance, or repayment of the
      Guaranteed Obligations (or execution, delivery and performance of any
      document or instrument representing any part of the Guaranteed Obligations
      or executed in connection with any of the Guaranteed Obligations, or given
      to secure the repayment of the Guaranteed Obligations) is illegal,
      uncollectible, legally impossible or unenforceable, or (G) this Agreement,
      any other Loan Document, or any other document or instrument pertaining to
      any of the Guaranteed Obligations has been forged or otherwise is
      irregular or not genuine or authentic;

            (v) any full or partial release of the liability of WII or either
      Borrower on the Guaranteed Obligations or any part thereof, or any other
      Person now or hereafter liable, whether directly or indirectly, jointly,
      severally, or jointly and severally, to pay, perform, guarantee, or assure
      the payment of the Guaranteed Obligations or any part thereof; it being
      recognized, acknowledged, and agreed by WII that WII may be required to
      pay the

                                     - 53 -
<PAGE>

      Guaranteed Obligations in full without assistance or support of any other
      Person, and that WII has not been induced to enter into this Guaranty on
      the basis of a contemplation, belief, understanding or agreement that any
      other Person shall be liable to perform the Guaranteed Obligations or that
      the Administrative Agent or any Lender shall look to any other Person to
      perform the Guaranteed Obligations;

            (vi) the taking or accepting of any other security, collateral or
      guaranty, or other assurance of payment, for all or any part of the
      Guaranteed Obligations;

            (vii) any release, surrender, exchange, subordination,
      deterioration, waste, loss or impairment of any collateral, property or
      security, at any time existing in connection with, or assuring or securing
      payment of, all or any part of the Guaranteed Obligations;

            (viii) the failure of the Administrative Agent, the Lenders or any
      other Person to exercise diligence or reasonable care in the preservation,
      protection, enforcement, sale or other handling or treatment of all or any
      part of such collateral, property or security;

            (ix) the fact that any collateral, security or Lien contemplated or
      intended to be given, created or granted as security for the repayment of
      the Guaranteed Obligations shall not be properly perfected or created, or
      shall prove to be unenforceable or subordinate to any other Lien; it being
      recognized and agreed by WII that WII is not entering into this Guaranty
      in reliance on, or in contemplation of the benefits of, the validity,
      enforceability, collectibility or value of any of the collateral for the
      Guaranteed Obligations;

            (x) any payment by either Borrower or WII to the Administrative
      Agent or any Lender is held to constitute a preference under bankruptcy or
      insolvency laws, or for any other reason either the Administrative Agent
      or any Lender is required to refund such payment or pay such amount to
      either Borrower, WII, or any other Person; or

            (xi) any other action taken or omitted to be taken with respect to
      this Agreement, any other Loan Document, the Guaranteed Obligations, or
      the security and collateral therefor, whether or not such action or
      omission prejudices WII or increases the likelihood that WII shall be
      required to pay the Guaranteed Obligations pursuant to the terms hereof;

it being the unambiguous and unequivocal intention of WII that WII shall be
obligated to pay the Guaranteed Obligations when due, notwithstanding any
occurrence, circumstance, event, action, or omission whatsoever, whether
contemplated or uncontemplated, and whether or not otherwise or particularly
described herein, except for the full and final payment and satisfaction of the
Guaranteed Obligations after the termination of all of the Commitments.

            (b) WII further agrees that, to the fullest extent permitted by law,
as between WII, or the one hand, and the Lenders and the Administrative Agent,
on the other hand, (i) the maturity of the Obligations may be accelerated as
provided in Section 8.01 for the purposes of this Guaranty, notwithstanding any
stay, injunction or other prohibition preventing the acceleration of the
Obligations as against either Borrower and (ii) in the event of any purported
acceleration (whether by declaration or automatic) of the Obligations as
provided in Section

                                     - 54 -
<PAGE>

8.01, the Obligations (whether or not due and payable) shall forthwith become
due and payable by WII for the purpose of this Guaranty.

      SECTION 10.03. Effect of Debtor Relief Laws. If after receipt of any
payment of, or proceeds of any security applied (or intended to be applied) to
the payment of all or any part of the Guaranteed Obligations, the Administrative
Agent or any Lender is for any reason compelled to surrender or voluntarily
surrenders, such payment or proceeds to any Person (a) because such payment or
application of proceeds is or may be avoided, invalidated, declared fraudulent,
set aside, determined to be void or voidable as a preference, fraudulent
conveyance, fraudulent transfer, impermissible set off or a diversion of trust
funds or (b) for any other reason, including (i) any judgment, decree or order
of any court or administrative body having jurisdiction over the Administrative
Agent, any Lender or any of their respective properties or (ii) any settlement
or compromise of any such claim effected by the Administrative Agent or any
Lender with any such claimant (including either Borrower), then the Guaranteed
Obligations or any part thereof intended to be satisfied shall be reinstated and
continue, and this Guaranty shall continue in full force as if such payment or
proceeds have not been received, notwithstanding any revocation thereof or the
cancellation of any instrument evidencing any of the Guaranteed Obligations or
otherwise; and WII shall be liable to pay the Administrative Agent and the
Lenders, and hereby does indemnify the Administrative Agent and the Lenders and
hold them harmless for the amount of such payment or proceeds so surrendered and
all reasonable expenses (including reasonable attorneys' fees, court costs and
expenses attributable thereto) incurred by the Administrative Agent or any such
Lender in the defense of any claim made against it that any payment or proceeds
received by the Administrative Agent or any such Lender in respect of all or
part of the Guaranteed Obligations must be surrendered. The provisions of this
paragraph shall survive the termination of this Guaranty and any satisfaction
and discharge of the Borrowers by virtue of any payment, court order, or any
law.

      SECTION 10.04. Waiver. WII hereby waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and waives presentment, demand for payment, notice
of intent to accelerate, notice of dishonor or nonpayment and any requirement
that the Administrative Agent or any Lender institute suit, collection
proceedings or take any other action to collect any of the Guaranteed
Obligations, including any requirement that the Administrative Agent or any
Lender protect, secure, perfect or insure any Lien against any property subject
thereto or exhaust any right or take any action against any Borrower or any
other Person or any collateral (it being the intention of the Administrative
Agent, the Lenders and WII that this Guaranty is to be a guaranty of payment and
not of collection). It shall not be necessary for the Administrative Agent or
any Lender, in order to enforce any payment by WII hereunder, to institute suit
or exhaust its rights and remedies against WII, any Borrower or any other
Person, including others liable to pay the Guaranteed Obligations, or to enforce
its rights against any security ever given to secure payment thereof. WII hereby
expressly waives to the maximum extent permitted by applicable law each and
every right to which it may be entitled by virtue of the suretyship laws of the
State of Texas or any other state in which it may be located, including any and
all rights it may have pursuant to Rule 31, Texas Rules of Civil Procedure,
Section 17.001 of the Texas Civil Practice and Remedies Code and Chapter 34 of
the Texas Business and Commerce Code. WII hereby waives marshaling of assets and
liabilities, notice by the Administrative Agent or any Lender of any
indebtedness or liability to which such Person applies or may apply any amounts
received by

                                     - 55 -
<PAGE>

it, and of the creation, advancement, increase, existence, extension, renewal,
rearrangement or modification of the Guaranteed Obligations. WII expressly
waives, to the extent permitted by applicable law, the benefit of any and all
laws providing for exemption of property from execution or for valuation and
appraisal upon foreclosure.

      SECTION 10.05. Agreement to Defer Exercise of Subrogation. Notwithstanding
any payment or payments made by WII hereunder, or any setoff or application by
the Administrative Agent or any Lender of any security or of any credits or
claims, WII will not assert or exercise any rights of the Administrative Agent
or any Lender or of itself against either Borrower to recover the amount of any
payment made hereunder by WII to the Administrative Agent or any Lender by way
of any claim, remedy or subrogation, reimbursement, exoneration, contribution,
indemnity, participation or otherwise arising by contract, by statute, under
common law or otherwise, and WII shall not have any right to exercise any right
of recourse to or any claim against assets or property of either Borrower for
such amounts, in each case unless and until the Obligations of such Borrower
guaranteed hereby have been fully and finally satisfied. Until such time (but
not thereafter), WII hereby agrees not to exercise any claim, right or remedy
which it may now have or hereafter acquire against either Borrower that arises
under this Agreement or any other Loan Document or from the performance by WII
of the Guaranty hereunder including any claim, remedy or right of subrogation,
reimbursement, exoneration, contribution, indemnification or participation in
any claim, right or remedy of the Administrative Agent or any Lender against
either Borrower or WII, or any security that the Administrative Agent or any
Lender now has or hereafter acquires pursuant hereto securing the Obligations of
the Borrowers under this Agreement, whether or not such claim, right or remedy
arises in equity, under contract, by statute, under common law or otherwise. If
any amount shall be paid to WII by either Borrower after payment in full of the
Obligations, and the Obligations shall thereafter be reinstated in whole or in
part and the Administrative Agent or any Lender forced to repay any sums
received by any of them in payment of the Obligations, this Guaranty shall be
automatically reinstated and such amount shall be held in trust for the benefit
of the Administrative Agent and the Lenders and shall forthwith be paid to the
Administrative Agent to be credited and applied to the Guaranteed Obligations,
whether matured or unmatured. The provisions of this paragraph shall survive the
termination of this Guaranty, and any satisfaction and discharge of either
Borrower by virtue of any payment, court order or any federal or state law.

      SECTION 10.06. Full Force and Effect. This Guaranty is a continuing
guaranty and shall remain in full force and effect until all of the Guaranteed
Obligations under this Agreement and the other Loan Documents to which any
Borrower is a party and all other amounts payable under this Guaranty have been
paid in full (after the termination of the Commitments). All rights, remedies
and powers provided in this Guaranty may be exercised, and all waivers contained
in this Guaranty may be enforced, only to the extent that the exercise or
enforcement thereof does not violate any provisions of applicable law which may
not be waived.

                                   Article XI
                                  MISCELLANEOUS

      SECTION 11.01. Waiver; Amendments. No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder
shall operate as a waiver

                                     - 56 -
<PAGE>

thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent and the
Lenders hereunder are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by any Obligor therefrom shall in any event be
effective unless the same shall be permitted by Section 11.05, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the
making of a Loan shall not be construed as a waiver of any Default or Event of
Default, regardless of whether the Administrative Agent or any Lender may have
had notice or knowledge of such Default at the time.

      SECTION 11.02. Notices.

            (a) All notices and other communications provided for herein,
including any modifications of, or waivers or consents under, this Agreement
(collectively, "Communications") shall be given or made on a Business Day by
telecopy (confirmed by mail) or other writing and telecopied or mailed or
delivered to the intended recipient at the "Address for Notices" specified below
its name on the signature pages hereof (or provided for in an Assignment and
Assumption); or, as to any party hereto, at such other address as shall be
designated by such party in a notice (given in accordance with this Section
11.02) (i) as to any Obligor, to the Administrative Agent, (ii) as to the
Administrative Agent, to any Obligor, and to each Lender, and (iii) as to any
Lender, to either Borrower and to the Administrative Agent. Except as otherwise
provided in this Agreement, all such Communications shall be deemed to have been
duly given (a) when transmitted by telecopier, confirmation received, (b) when
personally delivered, (c) one Business Day after deposit with an overnight mail
or delivery service, postage prepaid or (d) five Business Days' after deposit in
a receptacle maintained by the United States Postal Service, postage prepaid,
registered or certified mail, return receipt requested, in each case given or
addressed as aforesaid. Notwithstanding the foregoing, Communications to the
Administrative Agent pursuant to Article II, Article III or Article IX shall not
be effective until received by the Administrative Agent.

            (b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or any
Obligor may, in its discretion, agree to accept notices and other communications
to it hereunder by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular
notices or communications.

      SECTION 11.03. Expenses, Etc. Whether or not any Loan is ever made, the
Borrowers, jointly and severally, shall pay or reimburse within 10 days after
written demand (a) the Administrative Agent for paying the reasonable fees and
expenses of legal counsel to the Administrative Agent, together with the
reasonable fees and expenses of each local counsel to the Administrative Agent,
in connection with the preparation, negotiation, execution and delivery of this
Agreement (including the exhibits and schedules hereto), the other Loan
Documents and

                                     - 57 -
<PAGE>

the making of the Loans hereunder, and any modification, supplement or waiver of
any of the terms of this Agreement or any other Loan Document; (b) the
Administrative Agent for reasonable out-of-pocket expenses incurred in
connection with the preparation, documentation, administration and syndication
of any of the Loan Documents (including the advertising, marketing, printing,
publicity, duplicating, mailing and similar expenses) or any of the Obligations;
(c) the Administrative Agent or any Lender for paying all transfer, stamp,
documentary or other similar taxes, assessments or charges levied by any
governmental or revenue authority in respect of this Agreement or any other Loan
Document or any other document referred to herein or therein; and (d) following
the occurrence and during the continuation of an Event of Default, any Lender or
the Administrative Agent for paying all amounts reasonably expended, advanced or
incurred by such Lender or the Administrative Agent to collect the Obligations
or to enforce, protect, preserve or defend the rights of the Lenders or the
Administrative Agent under this Agreement or any other Loan Document, together
with interest thereon at the Past Due Rate applicable to the Loans on each such
amount from the due date of payment until the date of reimbursement to such
Lender or the Administrative Agent.

      SECTION 11.04. Indemnity.

            (a) The Borrowers, jointly and severally, shall indemnify the
Administrative Agent, the Lenders and each Affiliate thereof and their
respective directors, officers, employees and agents (each such Person being an
"Indemnitee") from, and hold each Indemnitee harmless against, any and all
losses, liabilities, claims or damages (including reasonable legal fees and
expenses) to which any Indemnitee may become subject, insofar as such losses,
liabilities, claims or damages arise out of or result from (i) any
investigation, litigation or other proceeding (including any threatened
investigation or proceeding) relating to this Agreement, any Loan or any other
Loan Document or (ii) any actual or proposed use by either Borrower or any of
its Subsidiaries of the proceeds of any extension of credit by any Lender
hereunder, and the Borrowers, jointly and severally, shall reimburse each
Indemnitee upon demand for any expenses (including reasonable legal fees)
incurred in connection with any such investigation, litigation or other
proceeding; but excluding any such losses, liabilities, claims, damages or
expenses incurred by reason of the gross negligence, willful misconduct or
unlawful conduct of such Indemnitee.

            (b) WITHOUT LIMITING ANY PROVISION OF THIS AGREEMENT, IT IS THE
EXPRESS INTENTION OF THE PARTIES HERETO THAT EACH INDEMNITEE HEREUNDER SHALL BE
INDEMNIFIED AND HELD HARMLESS AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS OR
DAMAGES ARISING OUT OF OR RESULTING FROM THE SOLE OR CONCURRENT ORDINARY
NEGLIGENCE OF SUCH INDEMNITEE. WITHOUT PREJUDICE TO THE SURVIVAL OF ANY OTHER
OBLIGATIONS OF THE BORROWERS HEREUNDER AND UNDER THE OTHER LOAN DOCUMENTS TO
WHICH IT IS A PARTY, THE OBLIGATIONS OF THE BORROWERS UNDER THIS SECTION 11.04
SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND
THE PAYMENT OF THE OTHER OBLIGATIONS OR THE ASSIGNMENT OF THE NOTES.

      SECTION 11.05. Amendments, Etc.

                                     - 58 -
<PAGE>

            (a) No amendment to or modification of this Agreement, the Notes or
any other Loan Document shall in any event be effective against any Obligor
unless the same shall be agreed or consented to in writing by such Obligor. No
amendment, modification or waiver of any provision of this Agreement, the Notes
or any other Loan Document, nor any consent to any departure by any Obligor
therefrom, shall in any event be effective against the Lenders unless the same
shall be agreed or consented to in writing by the Required Lenders, and each
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided that no amendment, modification,
waiver or consent shall (a) increase the Commitment of any of the Lenders (or
reinstate any termination or reduction of such Commitment), or subject any of
the Lenders to any additional obligations, without the written consent of such
Lender; (b) reduce the principal of, or interest on, any Loan, fee or other
amount due hereunder, without the written consent of each Lender affected
thereby; (c) postpone or extend the Maturity Date, the Termination Date, the
Availability Period or any scheduled date fixed for any payment of principal of,
or interest on, any Loan, fee or other sum to be paid hereunder, or waive any
Event of Default described in Section 8.01(a), without the written consent of
each Lender affected thereby; (d) change the percentage of any of the
Commitments or of the aggregate unpaid principal amount of Obligations, or the
percentage of Lenders, which shall be required for the Lenders or any of them to
take any action under this Agreement (including, to change the definition of
"Required Lenders"), without the written consent of each Lender; (e) change
Section 3.01(b) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender; (f) change any
provision contained in Section 11.03, 11.04 or 11.05, without the written
consent of each Lender, (g) release either Borrower from its joint and several
liability for the Obligations, without the written consent of each Lender; or
(h) release any Person from its liability under a guaranty, without the written
consent of each Lender. Notwithstanding anything in this Section 11.05 to the
contrary, no amendment, modification, waiver or consent shall be made with
respect to Article IX without the consent of the Administrative Agent to the
extent it affects the Administrative Agent, in its role as the Administrative
Agent. Subject to the foregoing, the amendment or waiver of any provisions of
Article V, VI, VII or VIII may be effected with the consent of the Required
Lenders.

      SECTION 11.06. Successors and Assigns.

            (a) The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that (i) no Obligor may assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by such Obligor without
such consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this
Section. Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants (to the extent provided in
paragraph (c) of this Section) and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

            (b) (i) Subject to the conditions set forth in subparagraph (b)(ii)
below, any Lender may assign to one or more assignees all or a portion of its
rights and obligations under

                                     - 59 -
<PAGE>

this Agreement (including all or a portion of its Commitment and the Loans at
the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

                  (A) WIL, provided that no consent of WIL shall be required for
            an assignment to a Lender, an Affiliate of a Lender, an Approved
            Fund or, if an Event of Default has occurred and is continuing, any
            other assignee; and

                  (B) the Administrative Agent, provided that no consent of the
            Administrative Agent shall be required for an assignment of any
            Commitment to an assignee that is a Lender with a Commitment
            immediately prior to giving effect to such assignment.

            (ii) Assignments shall be subject to the following additional
      conditions:

                  (A) except in the case of an assignment to a Lender or an
            Affiliate of a Lender or an assignment of the entire remaining
            amount of the assigning Lender's Commitment or Loans of any Type,
            the amount of the Commitment or Loans of the assigning Lender
            subject to each such assignment (determined as of the date the
            Assignment and Assumption with respect to such assignment is
            delivered to the Administrative Agent) shall not be less than
            $5,000,000 unless each of WIL and the Administrative Agent otherwise
            consent, provided that no such consent of WIL shall be required if
            an Event of Default under clause (a), (f) or (g) of Article VIII has
            occurred and is continuing;

                  (B) each partial assignment shall be made as an assignment of
            a proportionate part of all the assigning Lender's rights and
            obligations under this Agreement;

                  (C) the parties to each assignment shall execute and deliver
            to the Administrative Agent an Assignment and Assumption, together
            with a processing and recordation fee of $3,500;

                  (D) the assignee, if it shall not be a Lender, shall deliver
            to the Administrative Agent an Administrative Questionnaire;

                  (E) except in connection with assignments made while an Event
            of Default has occurred and is continuing, all prospective assignees
            of a Lender shall be required, as a condition to the effectiveness
            of such Assignment, to execute and deliver the forms required under
            Section 3.02(e) for any Lender, and no Assignment shall be effective
            in connection herewith unless and until such forms are so delivered;

                  (F) no assignment shall be made before the earlier to occur of
            (1) the New Revolving Credit Facility Effective Date and (2) January
            31, 2006; and

                  (G) in the case of any assignee subject to the prior written
            consent of WIL under Section 11.06(b)(i), no assignment shall be
            made to any such assignee unless such assignee provides a written
            representation to WIL that such assignee

                                     - 60 -
<PAGE>

            is not subject under then current law to any withholding tax on
            amounts payable to such assignee under this Agreement.

For purposes of this Section 11.06, the term "Approved Fund" has the following
meaning:

      "Approved Fund" means any Person (other than a natural person) that is
      engaged in making, purchasing, holding or investing in bank loans and
      similar extensions of credit in the ordinary course of its business and
      that is administered or managed by (a) a Lender, (b) an Affiliate of a
      Lender or (c) an entity or an Affiliate of an entity that administers or
      manages a Lender.

            (iii) Subject to acceptance and recording thereof pursuant to
      subparagraph (b)(iv) of this Section, from and after the effective date
      specified in each Assignment and Assumption, the assignee thereunder shall
      be a party hereto and, to the extent of the interest assigned by such
      Assignment and Assumption, have the rights and obligations of a Lender
      under this Agreement, and the assigning Lender thereunder shall, to the
      extent of the interest assigned by such Assignment and Assumption, be
      released from its obligations under this Agreement (and, in the case of an
      Assignment and Assumption covering all of the assigning Lender's rights
      and obligations under this Agreement, such Lender shall cease to be a
      party hereto but shall continue to be entitled to the benefits of Sections
      2.12, 2.13, 3.02, 11.03 and 11.04). Any assignment or transfer by a Lender
      of rights or obligations under this Agreement that does not comply with
      this Section 11.06 shall be treated for purposes of this Agreement as a
      sale by such Lender of a participation in such rights and obligations in
      accordance with paragraph (c) of this Section.

            (iv) The Administrative Agent, acting for this purpose as an agent
      of the Borrowers, shall maintain at one of its offices a copy of each
      Assignment and Assumption delivered to it and a register for the
      recordation of the names and addresses of the Lenders, and the Commitment
      of, and principal amount of the Loans owing by each Borrower to, each
      Lender pursuant to the terms hereof from time to time (the "Register").
      The entries in the Register shall be conclusive, and the Obligors, the
      Administrative Agent and the Lenders may treat each Person whose name is
      recorded in the Register pursuant to the terms hereof as a Lender
      hereunder for all purposes of this Agreement, notwithstanding notice to
      the contrary. The Register shall be available for inspection by the
      Obligors and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

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

                                     - 61 -
<PAGE>

            (c) (i) Any Lender may, without the consent of any Obligor or the
Administrative Agent, sell participations to one or more banks or other entities
(a "Participant") in all or a portion of such Lender's rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans
owing to it); provided that (A) such Lender's obligations under this Agreement
shall remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C) the
Borrowers, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the proviso to Section 11.05 that affects such Participant. Subject
to subparagraph (c)(ii) of this Section, each Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 3.02 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 8.02 as
though it were a Lender, provided such Participant agrees to be subject to
Section 3.01(b), and to deliver the forms required by Section 3.02(e), as though
it were a Lender.

            (ii) A Participant shall not be entitled to receive any greater
      payment under Sections 2.12 and 3.02 than the applicable Lender would have
      been entitled to receive with respect to the participation sold to such
      Participant, unless the sale of the participation to such Participant is
      made with WIL's prior written consent. A Participant that would be a
      Foreign Lender if it were a Lender shall not be entitled to the benefits
      of Section 3.02 unless WIL is notified of the participation sold to such
      Participant and such Participant agrees, for the benefit of the Borrowers,
      to comply with Sections 3.02(d) and 3.02(e) as though it were a Lender.

            (iii) Anything in this Section 11.06 to the contrary
      notwithstanding, no Participant shall be entitled to benefits under this
      Agreement if the Lender from whom such Participant purchased its
      participation would not be entitled to the same benefits, and no
      Participant shall be entitled to rights and benefits hereunder in excess
      of such Participant's pro rata interest in the applicable Lender's rights
      hereunder, the rights of a Participant hereunder being determined solely
      by and based upon the Lender from whom the Participant purchased its
      interest hereunder.

            (d) Notwithstanding any other provision herein, any Lender may, in
connection with any assignment or participation or proposed assignment or
participation pursuant to this Section 11.06, disclose to the assignee or
participant or proposed assignee or participant any information relating to the
Obligors furnished to such Lender by or on behalf of any Obligor, subject to the
provisions of Section 11.07.

            (e) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and

                                     - 62 -
<PAGE>

this Section shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security interest
shall release a Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.

            (f) All transfers of any interest in any Note hereunder shall be in
compliance with all federal, state and other securities laws, if applicable.
Notwithstanding the foregoing sentence, however, the parties to this Agreement
do not intend that any transfer under this Section 11.06 be construed as a
"purchase" or "sale" of a "security" within the meaning of any applicable
federal or state securities laws.

      SECTION 11.07. Confidentiality. Each Lender agrees to exercise its best
efforts to keep any information delivered or made available by any Obligor to it
pursuant to or in connection with this Agreement (including any information
obtained pursuant to Section 6.01 other than information on EDGAR or on a
publicly accessible page on the worldwide web), confidential from anyone other
than Persons employed or retained by such Lender or its Affiliates who are or
are expected to become engaged in evaluating, approving, structuring or
administering the Loans; provided that nothing herein shall prevent any Lender
from disclosing such information (a) to any other Lender or such Lender's
Affiliates, (b) pursuant to subpoena or upon the order of any court or
administrative agency, (c) upon the request or demand of any regulatory agency
or authority having or claiming jurisdiction over such Lender, (d) which has
been publicly disclosed, (e) to the extent reasonably required in connection
with any litigation to which the Administrative Agent, any Lender, any Obligor
or their respective Affiliates may be a party, (f) to the extent reasonably
required in connection with the exercise of any remedy hereunder or under any
other Loan Document, (g) to such Lender's legal counsel and independent auditors
and (h) to any actual or proposed participant or assignee of all or part of its
rights hereunder which has agreed in writing to be bound by the provisions of
this Section 11.07. Each Lender shall promptly notify WIL of any information
that it is required or requested to deliver pursuant to clause (b) or (c) of
this Section 11.07 and, if no Obligor is a party to any such litigation, clause
(e) of this Section 11.07.

      SECTION 11.08. Survival of Representations and Warranties. All
representations, warranties and covenants contained herein or made in writing by
the Obligors in connection herewith and the other Loan Documents shall survive
the execution and delivery of this Agreement, the Notes and the other Loan
Documents until two years and one day after payment in full of the Obligations
and the termination of the Commitments of the Lenders, and shall bind and inure
to the benefit of the respective successors and assigns of the parties hereto,
whether so expressed or not; provided that the undertaking of the Lenders to
make Loans and extend credit to the Borrowers shall not inure to the benefit of
any successor or assign of either Borrower, except a successor or assign that
becomes such in accordance with Section 7.02.

      SECTION 11.09. Governing Law. This Agreement, the Notes, the other Loan
Documents and all other documents executed in connection herewith and therewith
and the rights and obligations of the parties hereto and thereto, shall be
deemed to be contracts and agreements executed by the Obligors party thereto,
the Administrative Agent and the Lenders under the laws of the State of New York
and of the United States of America and for all purposes

                                     - 63 -
<PAGE>

shall be construed in accordance with, and governed by, the laws of said state
and, to the extent controlling, of the United States of America.

      SECTION 11.10. Independence of Covenants. All covenants contained in this
Agreement and in the other Loan Documents shall be given independent effect so
that if a particular action or condition is not permitted by any of such
covenants, the fact that such action or condition would be permitted by an
exception to, or otherwise be within the limitations of, another covenant, shall
not avoid the occurrence of a Default or an Event of Default if such action is
taken or condition exists.

      SECTION 11.11. Binding Effect. This Agreement shall become effective on
the Effective Date.

      SECTION 11.12. Severability. Should any clause, sentence, paragraph or
Section of this Agreement be judicially declared to be invalid, unenforceable or
void, such decision shall not have the effect of invalidating or voiding the
remainder of this Agreement, and the parties hereto agree that the part or parts
of this Agreement so held to be invalid, unenforceable or void shall be deemed
to have been stricken herefrom and the remainder shall have the same force and
effectiveness as if such part or parts had never been included herein.

      SECTION 11.13. Conflicts Between This Agreement and the Other Loan
Documents. In the event of any conflict between, or inconsistency with, the
terms of this Agreement and the terms of any of the other Loan Documents, the
terms of this Agreement shall control.

      SECTION 11.14. Limitation of Interest. Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the "Charges"), shall exceed the maximum
lawful rate (the "Maximum Rate") which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

      SECTION 11.15. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

      SECTION 11.16. Submission to Jurisdiction.

            (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE SUPREME COURT OF THE STATE OF
NEW YORK SITTING IN NEW YORK COUNTY

                                     - 64 -
<PAGE>

OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND
ANY APPELLATE COURT FROM EITHER THEREOF, AND, BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH OBLIGOR, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, UNCONDITIONALLY,
THE NON EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS WITH RESPECT TO ANY SUCH
ACTION OR PROCEEDING. EACH OBLIGOR, TO THE EXTENT IT IS NOT QUALIFIED TO DO
BUSINESS IN NEW YORK, HEREBY IRREVOCABLY DESIGNATES, APPOINTS AND EMPOWERS CT
CORPORATION SYSTEM, WITH OFFICES ON THE DATE HEREOF AT 111 EIGHTH AVENUE, NEW
YORK, NEW YORK 10011, AS ITS DESIGNEE, APPOINTEE AND AGENT TO RECEIVE, ACCEPT
AND ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE
OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED
IN ANY SUCH ACTION OR PROCEEDING. IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND
AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, EACH SUCH OBLIGOR AGREES TO
DESIGNATE A NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK ON THE TERMS AND FOR
THE PURPOSES OF THIS PROVISION SATISFACTORY TO THE ADMINISTRATIVE AGENT. EACH
OBLIGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT ITS ADDRESS
PROVIDED IN SECTION 11.02, AND AT ITS REGISTERED OFFICE, IF DIFFERENT. SUCH
SERVICE TO BECOME EFFECTIVE THIRTY DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL
AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST ANY OBLIGOR IN ANY OTHER JURISDICTION.

            (b) EACH OF THE OBLIGORS HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE
AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY
FURTHER IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,
AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

      SECTION 11.17. Waiver of Jury Trial. EACH OBLIGOR, THE ADMINISTRATIVE
AGENT AND EACH LENDER (a) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO ANY LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (b) IRREVOCABLY
WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM
OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,

                                     - 65 -
<PAGE>

ACTUAL DAMAGES; (c) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR
COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED
THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVERS; AND (d) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED
HEREBY AND THEREBY BASED UPON, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS CONTAINED IN THIS SECTION.

      SECTION 11.18. Judgment Currency. The obligation of each Obligor to make
payments on any Obligation to the Lenders or to the Administrative Agent
hereunder in any currency (the "first currency") shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or
converted into any other currency (the "second currency") except to the extent
to which such tender or recovery shall result in the effective receipt by the
applicable Lender or the Administrative Agent of the full amount of the first
currency payable, and accordingly the primary obligation of each Obligor shall
be enforceable as an alternative or additional cause of action for the purpose
of recovery in the second currency of the amount (if any) by which such
effective receipt shall fall short of the full amount of the full currency
payable and shall not be affected by a judgment being obtained for any other sum
due hereunder.

      SECTION 11.19. Final Agreement of the Parties. THIS AGREEMENT (INCLUDING
THE SCHEDULES AND EXHIBITS HERETO), THE NOTES AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER
HEREOF AND THEREOF, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

      SECTION 11.20. USA Patriot Act. Each Lender hereby notifies the Obligors
that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107 56 (signed into law October 26, 2001)) (the "Act"), it is required to
obtain, verify and record information that identifies each Obligor, which
information includes the name and address of such Obligor and other information
that will allow such Lender to identify such Obligor in accordance with the Act.

             [REMAINDER OF THIS PAGE BLANK; SIGNATURE PAGES FOLLOW.]

                                     - 66 -
<PAGE>

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

                             WIL:

                             WEATHERFORD INTERNATIONAL LTD.

                             By: /s/ BURT M. MARTIN
                                 ---------------------------------------------
                             Name: Burt M. Martin
                             Title: Senior Vice President, General Counsel
                                    and Secretary

                             Notice Information:

                             c/o Weatherford International, Inc.
                             515 Post Oak Blvd.
                             Houston, Texas 77027
                             Attention: General Counsel
                             Telephone: (713) 693-4000
                             Telecopy: (713) 693-4484

                             WII:

                             WEATHERFORD INTERNATIONAL, INC.

                             By: /s/ BURT M. MARTIN
                                 ---------------------------------------------
                             Name: Burt M. Martin
                             Title: Senior Vice President, General Counsel
                                    and Secretary

                             Notice Information:

                             515 Post Oak Blvd.
                             Houston, Texas 77027
                             Attention: General Counsel
                             Telephone: (713) 693-4000
                             Telecopy: (713) 693-4484

              SIGNATURE PAGE TO 364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                             HOC:

                             WEATHERFORD LIQUIDITY MANAGEMENT
                             HUNGARY LIMITED LIABILITY COMPANY

                             By: /s/ BURT M. MARTIN
                                 --------------------------------------------
                             Name: Burt M. Martin
                             Title: Authorized Representative

                             Notice Information:

                             c/o Weatherford International, Inc.
                             515 Post Oak Blvd.
                             Houston, Texas  77027
                             Attention: General Counsel
                             Telephone: (713) 693-4000
                             Telecopy: (713) 693-4484

              SIGNATURE PAGE TO 364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                             ADMINISTRATIVE AGENT:

                             UBS AG, STAMFORD BRANCH,
                                as Administrative Agent

                             By: /s/ WILFRED V. SAINT
                                 ----------------------------------------------
                             Name: Wilfred V. Saint
                             Title: Director - Banking Products Services, US

                             By: /s/ JOSELIN FERNANDES
                                 ----------------------------------------------
                             Name: Joselin Fernandes
                             Title: Associate Director - Banking Products
                                      Services, US

                             Notice Information:

                             677 Washington Boulevard
                             Stamford, Connecticut  06901
                             Attention: Vladimira Holeckova
                             Telephone: (203) 719-6403
                             Telecopy: (203) 719-3888

              SIGNATURE PAGE TO 364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                             LENDERS:

                             UBS LOAN FINANCE LLC

                             By: /s/ WILFRED V. SAINT
                                 ----------------------------------------------
                             Name: Wilfred V. Saint
                             Title: Director - Banking Products Services, US

                             By: /s/ JOSELIN FERNANDES
                                 ----------------------------------------------
                             Name: Joselin Fernandes
                             Title: Associate Director - Banking Products
                                      Services, US

                             Notice Information:

                             677 Washington Boulevard
                             Stamford, Connecticut  06901
                             Attention: Vladimira Holeckova
                             Telephone: (203) 719-6403
                             Telecopy: (203) 719-3888

              SIGNATURE PAGE TO 364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                             BANK OF AMERICA, N.A.

                             By: /s/ CLAIRE M. LIU
                                 --------------------------------------------
                             Name: Claire M. Liu
                             Title: Senior Vice President

                             Notice Information:

                             Mail Code TX1-492-14-12
                             Bank of America Plaza
                             901 Main Street
                             Dallas, Texas 75202-3714
                             Attention: Stephen R. Keilers
                             Telephone: (214) 209-2627
                             Telecopy: (214) 290-8367

              SIGNATURE PAGE TO 364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                             MORGAN STANLEY SENIOR FUNDING, INC.

                             By: /s/ EUGENE F. MARTIN
                                 ----------------------------------------------
                             Name: Eugene F. Martin
                             Title: Vice President

                             Notice Information:

                             One Pierrepont Plaza
                             300 Camden Plaza West, 7th Floor
                             New York, New York
                             Attention: Larry Benison
                             Telephone: (718) 754-7299
                             Telecopy: (718) 754-7249

              SIGNATURE PAGE TO 364-DAY REVOLVING CREDIT AGREEMENT

<PAGE>

                                                                       EXHIBIT A

                            ASSIGNMENT AND ASSUMPTION

      This Assignment and Assumption (the "Assignment and Assumption") is dated
as of the Effective Date set forth below (the "Effective Date") and is entered
into by and between [INSERT NAME OF ASSIGNOR] (the "Assignor") and [INSERT NAME
OF ASSIGNEE], (the "Assignee"). Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, supplemented or restated from time to time, the "Credit
Agreement"), receipt of a copy of which is hereby acknowledged by the Assignee.
The Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

      For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (i) all of the Assignor's rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including any guarantees included in such
facilities) and (ii) to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of the Assignor (in
its capacity as a Lender) against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including contract
claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity related to the rights and obligations sold and assigned
pursuant to clause (i) above (the rights and obligations sold and assigned
pursuant to clauses (i) and (ii) above being referred to herein collectively as
the "Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.

1. Assignor:              _____________________________________________________

2. Assignee:              _____________________________________________________
                          [and is an Affiliate/Approved Fund of
                          [IDENTIFY LENDER](1)

3. Borrowers:             Weatherford International Ltd. and Weatherford
                          Liquidity Management Hungary Limited Liability Company

4. Administrative Agent:  UBS AG, Stamford Branch, as the administrative under
                          the Credit Agreement

---------
(1)   Select as applicable.

                                      A-1

<PAGE>

5. Credit Agreement:      The 364-Day Revolving Credit Agreement dated as of
                          August 25, 2005 among Weatherford International Ltd.,
                          Weatherford Liquidity Management Hungary Limited
                          Liability Company, Weatherford International, Inc.,
                          the Lenders party thereto and UBS AG, Stamford
                          Branch, as Administrative Agent

6. Assigned Interest:

<TABLE>
<CAPTION>
 Aggregate Amount of
Commitment/Revolving          Amount of         Percentage Assigned of
 Credit Exposure for    Commitment/Revolving     Commitment/Revolving
     All Lenders      Credit Exposure Assigned    Credit Exposure(2)
--------------------  ------------------------  ----------------------
<S>                   <C>                       <C>
 $                      $                                        %
 $                      $                                        %
 $                      $                                        %
</TABLE>

7. Effective Date: _________________, 20___ [TO BE INSERTED BY ADMINISTRATIVE
   AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN
   THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

                                  ASSIGNOR:

                                  [NAME OF ASSIGNOR]

                                  By:_________________________________
                                  Name:
                                  Title:

                                  ASSIGNEE:

                                  [NAME OF ASSIGNEE]

                                  By:_________________________________
                                  Name:
                                  Title:

------------
(2) Set forth, to at least 9 decimals, as a percentage of the
Commitment/Revolving Credit Exposure of all Lenders thereunder.

                                      A-2

<PAGE>

[Consented to and](3) Accepted:

UBS AG, STAMFORD BRANCH,
    as Administrative Agent

By: ______________________________
Name:
Title:

[Consented to:](4)

WEATHERFORD INTERNATIONAL LTD.,
   as Borrower

By: ______________________________
Name:
Title:

-------------
(3) To be added only if the consent of the Administrative Agent is required by
the terms of the Credit Agreement.

(4) To be added only if the consent of WIL is required by the terms of the
Credit Agreement.

                                      A-1

<PAGE>

                                                                         ANNEX 1

                        STANDARD TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ASSUMPTION

      1. Representations and Warranties.

      1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the
Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of any
Obligor, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by any
Obligor, any of its Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.

      1.2 Assignee. The Assignee (a) represents and warrants that (i) it has
full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to acquire the Assigned Interest and
become a Lender, (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder and, to the extent
of the Assigned Interest, shall have the obligations of a Lender thereunder,
(iv) it has received a copy of the Credit Agreement, together with copies of the
most recent financial statements delivered pursuant to Section 6.01 thereof, as
applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender, [and] (v) if it is a Foreign
Lender, attached to the Assignment and Assumption is any documentation required
to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee [and (vi) it is not subject under current
law to any withholding tax on amounts payable to it under the Credit
Agreement](5); and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

------------
(5) Only required if the consent of WIL is required by the terms of the Credit
Agreement.

                                      A-2

<PAGE>

      [It is expressly understood and agreed by all parties hereto that WIL is a
third party beneficiary of the representation of the Assignee contained in
clause (a)(vi) of Section 1.2 of this Assignment and Assumption.](6)

      2. Payments. From and after the Effective Date, the Administrative Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.

      3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

-----------
(6) Only required if the consent of WIL is required by the terms of the Credit
Agreement.

                                      A-3

<PAGE>

                                                                       EXHIBIT B

                                     FORM OF
                                 PROMISSORY NOTE

                                                            _____________, 200__

      WEATHERFORD INTERNATIONAL LTD., a Bermuda exempted company, and
WEATHERFORD LIQUIDITY MANAGEMENT HUNGARY LIMITED LIABILITY COMPANY, a Hungarian
limited liability company (collectively, the "Borrowers"), for value received,
jointly and severally, promise and agree to pay to _____________________________
(the "Lender"), or order, at the principal office of UBS AG, Stamford Branch, as
Administrative Agent, at 677 Washington Boulevard, Stamford, Connecticut 06901,
the principal sum of such Lender's Commitment, or such lesser amount as shall
equal the aggregate unpaid principal amount of the Loans owed to the Lender
under the Credit Agreement, as hereafter defined, in lawful money of the United
States of America and in immediately available funds, on the dates and in the
principal amounts provided in the Credit Agreement, and to pay interest on the
unpaid principal amount as provided in the Credit Agreement for such Loans, at
such office, in like money and funds, for the period commencing on the date of
each such Loan until such Loan shall be paid in full, at the rates per annum and
on the dates provided in the Credit Agreement.

      This note evidences the Loans owed to the Lender under that certain
364-Day Revolving Credit Agreement dated as of August 25, 2005, by and among the
Borrowers, Weatherford International, Inc., a Delaware corporation ("WII"), UBS
AG, Stamford Branch, individually and as Administrative Agent, and the other
financial institutions parties thereto (including the Lender) (such 364-Day
Revolving Credit Agreement, together with all amendments or supplements thereto,
being the "Credit Agreement"), and shall be governed by the Credit Agreement.
Capitalized terms used in this note and not defined in this note, but which are
defined in the Credit Agreement, have the respective meanings herein as are
assigned to them in the Credit Agreement.

      The Lender is hereby authorized by the Borrowers to endorse on Schedule A
(or a continuation thereof) attached to this note, the applicable Borrower and
Type of each Loan owed to the Lender, the amount and date of each payment or
prepayment of principal of each such Loan received by the Lender and the
Interest Periods and interest rates applicable to each Loan, provided that any
failure by the Lender to make any such endorsement shall not affect the
obligations of the Borrowers under the Credit Agreement or under this note in
respect of such Loans.

      This note may be held by the Lender for the account of its applicable
lending office and, except as otherwise provided in the Credit Agreement, may be
transferred from one lending office of the Lender to another lending office of
the Lender from time to time as the Lender may determine.

      Except only for any notices which are specifically required by the Credit
Agreement, the Borrowers and any and all co-makers, endorsers, guarantors and
sureties severally waive notice

                                      B-1

<PAGE>

(including but not limited to notice of intent to accelerate and notice of
acceleration, notice of protest and notice of dishonor), demand, presentment for
payment, protest, diligence in collecting and the filing of suit for the purpose
of fixing liability, and consent that the time of payment hereof may be extended
and re-extended from time to time without notice to any of them. Each such
person agrees that his, her or its liability on or with respect to this note
shall not be affected by any release of or change in any guaranty or security at
any time existing or by any failure to perfect or maintain perfection of any
lien against or security interest in any such security or the partial or
complete unenforceability of any guaranty or other surety obligation, in each
case in whole or in part, with or without notice and before or after maturity.

      The Credit Agreement provides for the acceleration of the maturity of this
note upon the occurrence of certain events and for prepayment of Loans upon the
terms and conditions specified therein. Reference is made to the Credit
Agreement for all other pertinent purposes.

      This note is issued pursuant to and is entitled to the benefits,
including, without limitation, the Guaranty of WII contained in Article X of the
Credit Agreement.

      This note shall be construed in accordance with and be governed by the law
of the State of New York and the United States of America from time to time in
effect.

The COMMON SEAL of                )
WEATHERFORD INTERNATIONAL LTD.    )
was hereunto affixed              )
in the presence of:               )

By:  _________________________________
Name:
Title:

                                      B-2

<PAGE>

                                  WEATHERFORD LIQUIDITY MANAGEMENT
                                  HUNGARY LIMITED LIABILITY COMPANY

                                  By: ______________________________________
                                  Name:
                                  Title:

                                      B-3

<PAGE>

                                   SCHEDULE A
                                       TO
                                 PROMISSORY NOTE

This note evidences the Loans owed to the Lender under the Credit Agreement, in
the principal amount set forth below and the applicable Interest Periods and
rates for each such Loan, subject to the payments of principal set forth below:

            SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL AND INTEREST

<TABLE>
<CAPTION>
                                                                Amount of
                                                 Principal      Principal
                           Interest              Amount of       Paid or      Interest   Balance     Notation
Borrower          Date      Period     Rate        Loan          Prepaid        Paid     of Loans     Made by
--------          ----     --------    ----      ---------      ---------     --------   --------    --------
<S>               <C>      <C>         <C>       <C>            <C>           <C>        <C>         <C>
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
________          ____     ________    ____      _________      _________     ________   ________    ________
</TABLE>

                                      B-4

<PAGE>

                                                                       EXHIBIT C

                         FORM OF COMPLIANCE CERTIFICATE

      The undersigned hereby certifies that such officer is the _______________
of Weatherford International Ltd., a Bermuda exempted company ("WIL"), and that
such officer is authorized to execute this certificate on behalf of such
Borrower pursuant to the 364-Day Revolving Credit Agreement dated as of August
25, 2005 (as restated, amended, modified, supplemented and in effect from time
to time, the "Credit Agreement"), among WIL, Weatherford Liquidity Management
Hungary Limited Liability Company, a Hungarian limited liability company
(together with WIL, the "Borrowers"), Weatherford International, Inc., a
Delaware corporation ("WII", and together with the Borrowers, the "Obligors"),
the Lenders and UBS AG, Stamford Branch, as Administrative Agent; and that a
review of the Obligors have been made under such officer's supervision with a
view to determining whether the Obligors have fulfilled all of their respective
obligations under the Credit Agreement, the Notes and the other Loan Documents;
and on behalf of WIL further certifies, represents and warrants that to the
knowledge of such officer, after due inquiry (each capitalized term used herein
having the same meaning given to it in the Credit Agreement unless otherwise
specified):

      No Default or Event of Default has occurred and is continuing. In this
regard, the compliance with the provisions of Sections 7.04 and 7.06 of the
Credit Agreement (or if any Default or Event of Default does exist, attached is
a description of such event) is as follows:

            (a)   Section 7.04(b) - Indebtedness of Subsidiaries (other than WII
                  and HOC)

<TABLE>
<CAPTION>
Actual               Required
------             ------------
<S>                <C>
$_____             $________(7)
</TABLE>

            (b)   Section 7.06 - Consolidated Indebtedness to Total
                  Capitalization

<TABLE>
<CAPTION>
Actual                     Required
-------                    --------
<S>                        <C>
______%                       60%
</TABLE>

Attached are calculations demonstrating such compliance.

      DATED as of _____________________.

                                       _______________________________________
                                       [SIGNATURE OF AUTHORIZED OFFICER OF WIL]

----------
(7)   Not more than 20% of WIL's Net Worth.

                                      C-1

<PAGE>

                                                                       EXHIBIT D

                            FORM OF BORROWING REQUEST

UBS AG, Stamford Branch,
as Administrative Agent for the Lenders referred to below,
677 Washington Boulevard
Stamford, Connecticut  06901

Attention: Vladimira Holeckova
           Telecopy: (203) 719-3888

Re: Weatherford International Ltd. ("WIL")
    Weatherford Liquidity Management Hungary Limited Liability Company ("HOC")

                                                                          [Date]

Ladies and Gentlemen:

            Reference is made to the 364-Day Revolving Credit Agreement dated as
of August 25, 2005 (as restated, amended, modified, supplemented and in effect
from time to time, the "Credit Agreement"), among WIL and HOC, as Borrowers
(each, a "Borrower"), Weatherford International, Inc. ("WII", and together with
the Borrowers, the "Obligors"), the Lenders party thereto and UBS AG, Stamford
Branch, as Administrative Agent (in such capacity, the "Administrative Agent")
for the Lenders. Capitalized terms used herein and not defined herein have the
respective meanings herein as are assigned to such terms in the Credit
Agreement.

            [WIL] [HOC] (the "Requesting Borrower") hereby gives you notice
pursuant to Section 2.02 of the Credit Agreement that it requests a Borrowing
under the Credit Agreement, and in that connection sets forth below the terms on
which such Borrowing is requested to be made:

(A)   Principal amount of Borrowing(8):            _______________________

(B)   Date of Borrowing (which is a Business Day): _______________________

(C)   Type of Borrowing:                           [ABR] [Eurodollar]

(D)   Interest Period and the last day thereof(9): _______________________

--------------
(8) ABR Borrowings must be in an aggregate amount that is an integral multiple
of $500,000 and not less than $1,000,000. Eurodollar Borrowings must be in an
aggregate amount that is an integral multiple of $3,000,000 and not less than
$3,000,000.

(9) For Eurodollar Borrowings only. Shall be subject to the definition of
"Interest Period" in the Credit Agreement.

                                      D-1

<PAGE>

(E) Funds are requested to be disbursed to the following account of the
Borrower:

            Bank name:          ________________________________

            ABA Routing No.:    ________________________________

            Bank address:       ________________________________

            Account No.:        ________________________________

            Account Name:       ________________________________

            Attn/Reference(10): ________________________________

            WIL hereby certifies, represents and warrants to the Lenders and the
Administrative Agent that, as of the date hereof and as of the date of the
Borrowing being requested pursuant to this Borrowing Request (the "Borrowing
Date"):

            (1) The representations and warranties set forth in Article V of the
Credit Agreement and in the other Loan Documents are true and correct in all
material respects (unless any such representation and warranty expressly relates
to an earlier date, in which case such representation and warranty shall
continue to be true and correct as of such earlier date).

            [(2) The Acquisition has been or is concurrently being consummated,
or will be consummated on the Borrowing Date or within a reasonable period of
time after the Borrowing Date, substantially in accordance with the terms of the
Acquisition Document (as amended, supplemented or otherwise modified).

            (3) There have been no material amendments, waivers or supplements
to the Acquisition Document other than as have been disclosed and delivered to
the Administrative Agent prior to the date hereof.

            (4) Except for actions, suits or proceedings described in the
filings made by WIL with the Securities and Exchange Commission pursuant to the
Exchange Act, (a) there are no actions, suits or proceedings pending or, to the
best knowledge of WIL, threatened by or against any Obligor or against any of
their respective properties or assets that are reasonably likely to have
(individually or collectively) a Material Adverse Effect and (b) to the best
knowledge of WIL, there are no actions, suits or proceedings pending or
threatened that purport to affect or pertain to the Loan Documents, any
transactions contemplated thereby or the Acquisition.

            (5) There has been no material adverse change since December 31,
2004 in the financial condition, business or operations of WIL and its
Subsidiaries taken as a whole which could reasonably be expected to have a
Material Adverse Effect.

----------
(10) Insert if applicable.

                                      D-2

<PAGE>

            (6) The proceeds of the Borrowing being requested pursuant to this
Borrowing Request will be used to fund the Acquisition.](11)

            [(2) The Redemption has been or is concurrently being consummated,
or will be consummated on the Borrowing Date or within a reasonable period of
time after the Borrowing Date, substantially in accordance with the terms of the
indenture pursuant to which the Zero Coupon Debentures were issued.

            (3) Except for actions, suits or proceedings described in the
filings made by WIL with the Securities and Exchange Commission pursuant to the
Exchange Act, (a) there are no actions, suits or proceedings pending or, to the
best knowledge of WIL, threatened by or against any Obligor or against any of
their respective properties or assets that are reasonably likely to have
(individually or collectively) a Material Adverse Effect and (b) to the best
knowledge of WIL, there are no actions, suits or proceedings pending or
threatened that purport to affect or pertain to the Loan Documents or any
transactions contemplated thereby.

            (4) There has been no material adverse change since December 31,
2004 in the financial condition, business or operations of WIL and its
Subsidiaries taken as a whole which could reasonably be expected to have a
Material Adverse Effect.

            (5) The proceeds of the Borrowing being requested pursuant to this
Borrowing Request will be used to fund [the Redemption] [the repurchase of
common shares or other equity securities issued by WIL, provided that such
shares or securities are cancelled, and not held in treasury for reissuance,
immediately following the repurchase thereof](12).

            [(2) The proceeds of the Borrowing being requested pursuant to this
Borrowing Request will be used to refinance commercial paper or short term notes
that are equivalent thereto issued by either Borrower or the Guarantor.](13)

--------------
(11) To be included for Acquisition Borrowings.

(12) To be included for the Redemption Borrowing.

(13) To be included for CP Borrowings.

                                      D-3

<PAGE>

            IN WITNESS WHEREOF, the undersigned [has] [have] executed this
Borrowing Request this _____ day of _____________, 200__.

                                   WEATHERFORD INTERNATIONAL LTD.

                                   By: __________________________________
                                   Name:
                                   Title:

                                   [WEATHERFORD LIQUIDITY MANAGEMENT
                                   HUNGARY LIMITED LIABILITY COMPANY

                                   By: __________________________________
                                   Name:
                                   Title:

                                      D-4

<PAGE>

                                                                       EXHIBIT E

                        FORM OF INTEREST ELECTION REQUEST

UBS AG, Stamford Branch,
  as Administrative Agent for the Lenders referred to below,
677 Washington Boulevard
Stamford, Connecticut  06901

Attention: Vladimira Holeckova
           Telecopy: (203) 719-3888

Re: Weatherford International Ltd.
    Weatherford Liquidity Management Hungary Limited Liability Company

[Date]

Ladies and Gentlemen:

            Reference is made to the 364-Day Credit Agreement dated as of August
25, 2005 (as restated, amended, modified, supplemented and in effect from time
to time, the "CREDIT AGREEMENT") among Weatherford International Ltd. ("WIL")
and Weatherford Liquidity Management Hungary Limited Liability Company ("HOC"),
as Borrowers (each, a "Borrower"), Weatherford International, Inc., UBS AG,
Stamford Branch, as administrative agent (in such capacity, "ADMINISTRATIVE
AGENT"), and the lenders party thereto. Capitalized terms used but not defined
herein have the meanings assigned to them in the Credit Agreement. [WIL] [HOC]
hereby gives you notice pursuant to Section 2.04 of the Credit Agreement that it
elects to [continue the Borrowing listed below, or a portion thereof as
described below] [convert the Borrowing listed below, or a portion thereof as
described below, to a different Type], and in that connection sets forth below
the terms on which such [conversion] [continuation] is to be made.

(A)   The amount of the Borrowing to which this
      Interest Election Request applies(14):          _________________________

(C)   The effective date of the election
      (which is a Business Day):                      _________________________

(D)   Type of Borrowing following [conversion]
      [continuation]:                                 [ABR] [Eurodollar]

(E)   Interest Period and the last day thereof(15):   _________________________

-------------------
(14) If different options are being elected with respect to different portions
of such Borrowing, specify the portions thereof to be allocated to each
resulting Borrowing and specify the information requested in clauses (C), (D)
and (E) for each resulting Borrowing.

                                      E-1

<PAGE>

                            [Signature Page Follows]

------------
(15) For Eurodollar Borrowings only. Shall be subject to the definition of
"Interest Period" in the Credit Agreement.

                                      E-2

<PAGE>

      IN WITNESS WHEREOF, the undersigned has executed this Interest Election
Request this ___ day of ___________, 200__.

                                           [BORROWER]

                                           By: _________________________________
                                               Name:
                                               Title: [Responsible Officer]

                                      E-3

<PAGE>

                                PRICING SCHEDULE

<TABLE>
<CAPTION>
      Index                 Utilization     Facility        Applicable
   Debt Ratings                 Fee           Fee             Margin
--------------------        -----------     --------        ----------
<S>                         <C>             <C>             <C>
Performance Level I             .050%          .070%           .230%

Performance Level II            .050%          .080%           .270%

Performance Level III           .050%          .100%           .350%

Performance Level IV            .050%          .140%           .485%

Performance Level V             .050%          .165%           .710%
</TABLE>

      For purposes of the foregoing, (i) if either Moody's or S&P shall not have
in effect a rating for the Index Debt (other than by reason of the circumstances
referred to in the last sentence of this definition), then such rating agency
shall be deemed to have established the same rating as the rating agency that
has in effect a rating for the Index Debt; (ii) if the ratings established or
deemed to have been established by Moody's and S&P for the Index Debt shall fall
within different Performance Levels, the Applicable Rate shall be based on the
higher of the two ratings unless one of the two ratings is two or more
Performance Levels lower than the other, in which case the Applicable Rate shall
be determined by reference to the Performance Level next below that of the
higher of the two ratings; and (iii) if the ratings established or deemed to
have been established by Moody's and S&P for the Index Debt shall be changed
(other than as a result of a change in the rating system of Moody's or S&P),
such change shall be effective as of the date on which it is first announced by
the applicable rating agency, irrespective of when or whether notice of such
change shall have been furnished by WIL to the Administrative Agent and the
Lenders. Each change in the Applicable Rate shall apply during the period
commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating
system of Moody's or S&P shall change, or if either such rating agency shall
cease to be in the business of rating corporate debt obligations, WIL and the
Lenders shall negotiate in good faith to amend this definition to reflect such
changed rating system or the unavailability of ratings from such rating agency
and, pending the effectiveness of any such amendment, the Applicable Rate shall
be determined by reference to the rating most recently in effect prior to such
change or cessation.

                               Pricing Schedule-1

<PAGE>

                                                                   SCHEDULE 1.01

                                     LENDERS

UBS Loan Finance LLC

Bank of America, N.A.

Morgan Stanley Senior Funding, Inc.

                                 Schedule 1.01-1

<PAGE>

                                                                   SCHEDULE 2.01

                                   COMMITMENTS

            BANK                                              ALLOCATION
-----------------------------------                         --------------
UBS Loan Finance LLC                                        $  400,000,000
Bank of America, N.A.                                       $  400,000,000
Morgan Stanley Senior Funding, Inc.                         $  400,000,000

          TOTAL                                             $1,200,000,000
                                                            ==============

                                Schedule 2.01-2

<PAGE>

                                                                   SCHEDULE 5.01

                              MATERIAL SUBSIDIARIES

<TABLE>
<CAPTION>
                                                                                                % OF CAPITAL
                                                                                               STOCK DIRECTLY
                                                             DIRECT OWNERS                        OWNED BY
               NAME OF COMPANY                             OF CAPITAL STOCK                     EACH OBLIGOR
---------------------------------------------   --------------------------------------         --------------
<S>                                             <C>                                            <C>
Weatherford Artificial Lift Systems, Inc.           Weatherford International, Inc.                 100%

Weatherford U.K. Ltd.                                 Weatherford Eurasia Limited                   None

Weatherford Bermuda Holdings Ltd                     Weatherford International Ltd                  100%

Weatherford Canada Ltd.                           Weatherford Investment (Luxembourg)               None
                                                               S.a.r.l.

Weatherford Canada Partnership                      Weatherford Canada Ltd - 82.7%                  None
                                                  Weatherford ER Amalco Inc. - 16.3%
                                                      Weatherford Artificial Lift
                                                       Systems Canada Ltd. - 1%

Weatherford Eurasia Limited                       Weatherford Investment (Luxembourg)               None
                                                               S.a.r.l.

Weatherford International, Inc.                    Weatherford U.S. Holdings, L.L.C.                None

Weatherford Investment  (Luxembourg) S.a.r.l.       Weatherford Luxembourg S.a.r.l.                 None

Weatherford Luxembourg S.a.r.l.                     Weatherford/Lamb, Inc. - 90.7%                  None
                                                 Weatherford Artificial Lift Systems,
                                                              Inc. - 9.3%

Weatherford Financing (Luxembourg) S.a.r.l.         Weatherford International, Ltd.                 100%

Weatherford Oil Tool Middle East Ltd.                   Weatherford/Lamb, Inc.                      None

Weatherford U.S. Holdings, L.L.C.                  Weatherford Bermuda Holdings Ltd.                None

Weatherford U.S., L.P.                                 WEUS Holding, Inc. - 99%                     None
                                                        WUS Holding, L.L.C. 1%

Weatherford/Lamb, Inc.                                    WEUS Holding, Inc.                        None

WEUS Holding, Inc.                                  Weatherford International, Inc.                 100%

Weatherford Liquidity Management Hungary                 Weatherford Financing                      None
Limited Liability Company                             (Luxembourg) S.a.r.l. - 90%

                                                Weatherford International Ltd. - 10%
</TABLE>

                                 Schedule 5.01-3

<PAGE>

<TABLE>
<CAPTION>
                                                                                                % OF CAPITAL
                                                                                               STOCK DIRECTLY
                                                             DIRECT OWNERS                        OWNED BY
               NAME OF COMPANY                             OF CAPITAL STOCK                     EACH OBLIGOR
---------------------------------------------   --------------------------------------         --------------
<S>                                             <C>                                            <C>
Weatherford Hong Kong Holdings Limited             Weatherford Bermuda Holdings Ltd.                None

Weatherford Holding (Ireland) Company           Weatherford Hong Kong Holdings Limited              None

Weatherford (G.B.) LLP                                Weatherford Canada Limited                    None

Weatherford North Atlantic Limited                 Weatherford Bermuda Holdings Ltd.                None

Weatherford Limited Partner, LLC                          WEUS Holding, Inc.                        None
</TABLE>

                                 Schedule 5.01-4exv10w4

 

Exhibit 10.4

 

LOAN AGREEMENT

Dated as of August 25, 2005

Between

AFL05 DUNCAN SC LLC,

as a Borrower

and

LITTLE ARCH CHARLOTTE NC LLC,

as a Borrower

and

BANK OF AMERICA, N.A.,

as Lender

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 GENERAL TERMS
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 3 CONDITIONS PRECEDENT
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 5 BORROWER COVENANTS
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 6 ENTITY COVENANTS
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 7 NO SALE OR ENCUMBRANCE
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 8 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 9 RESERVE FUNDS
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 10 CASH MANAGEMENT
	 	 	70	 
	 
	 	 	 	 
	ARTICLE 11 EVENTS OF DEFAULT; REMEDIES
	 	 	78	 
	 
	 	 	 	 
	ARTICLE 12 ENVIRONMENTAL PROVISIONS
	 	 	81	 
	 
	 	 	 	 
	ARTICLE 13 SECONDARY MARKET
	 	 	85	 
	 
	 	 	 	 
	ARTICLE 14 INDEMNIFICATIONS
	 	 	87	 
	 
	 	 	 	 
	ARTICLE 15 EXCULPATION
	 	 	88	 
	 
	 	 	 	 
	ARTICLE 16 NOTICES
	 	 	91	 
	 
	 	 	 	 
	ARTICLE 17 FURTHER ASSURANCES
	 	 	92	 
	 
	 	 	 	 
	ARTICLE 18 WAIVERS
	 	 	95	 
	 
	 	 	 	 
	ARTICLE 19 GOVERNING LAW
	 	 	98	 
	 
	 	 	 	 
	ARTICLE 20 MISCELLANEOUS
	 	 	98	 

 

 

LOAN AGREEMENT

     THIS LOAN AGREEMENT, dated as of August 25, 2005 (as amended, restated, replaced, supplemented
or otherwise modified from time to time, this “Agreement”), between BANK OF AMERICA, N.A., a
national banking association, having an address at c/o LJ Melody and Company, GEMSA Loan Services,
LP, 1500 City West Blvd., Suite 200, Houston, Texas 77042 (together with its successors and/or
assigns, “Lender”), and AFL05 DUNCAN SC LLC, a Delaware limited liability company, having an
address at 1521 Westbranch Drive, Suite 200, McLean, VA 22102 (together with its successors and/or
assigns, “AFL”) and LITTLE ARCH CHARLOTTE NC LLC, a Delaware limited liability company, having an
address at 1521 Westbranch Drive, Suite 200, McLean, VA 22102 (together with its successors and
assigns, “Little Arch”, and, together with AFL, individually and collectively, as the context may
require, “Borrower”).

RECITALS:

     Borrower desires to obtain the Loan (defined below) from Lender.

     Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms of
this Agreement and the other Loan Documents (defined below).

     In consideration of the making of the Loan by Lender and the covenants, agreements,
representations and warranties set forth in this Agreement, the parties hereto hereby covenant,
agree, represent and warrant as follows:

ARTICLE 1

DEFINITIONS; PRINCIPLES OF CONSTRUCTION

     Section 1.1 Definitions

     For all purposes of this Agreement, except as otherwise expressly required or unless the
context clearly indicates a contrary intent:

     “Additional Replacement” shall have the meaning set forth in Section 9.5(g) hereof.

     “Additional Required Repair” shall have the meaning set forth in Section 9.5(f)
hereof.

     “Affiliate” shall mean, as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by or is under common control with such Person or is a
director or officer of such Person or of an Affiliate of such Person.

     “Affiliated Manager” shall have the meaning set forth in Section 7.1 hereof.

 

 

     “AFL Acceptable Replacement Tenant” shall have the meaning set forth in Section 9.3(c)
hereof.

     “AFL Acceptable Replacement Tenant Requirements” shall have the meaning set forth in
Section 9.3(c) hereof.

     “AFL Lease” shall mean that certain Lease of the AFL Property by and between AFL, as
landlord, and AFL Tenant, as tenant, together with all amendments, modifications, renewals and
replacements therefor.

     “AFL Leasing Reserve Account” shall have the meaning set forth in Section 9.3(b).

     “AFL Partial Release Provisions” shall have the meaning set forth in Section 9.3(c)
hereof.

     “AFL Property” shall mean the portion of the Property currently owned by AFL.

     “AFL Space” shall mean the space currently occupied by the AFL Tenant on the AFL
Property.

     “AFL Tenant” shall mean the current tenant occupying the AFL Property pursuant to a
written lease agreement.

     “ALTA” shall mean American Land Title Association, or any successor thereto.

     “Alteration Threshold” means $100,000.00.

     “Annual Budget” shall mean the operating budget, including all planned capital
expenditures, for the Property approved by Lender in its sole and absolute discretion for the
applicable calendar year or other period.

     “Assignment of Management Agreement” shall mean, with respect to the Little Arch
Property, that certain Assignment and Subordination of Management Agreement and Consent of Manager
dated the date hereof among Lender, Borrower and Manager, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, together with any other assignment
and subordination of any Management Agreement now or hereafter relating to any portion of the
Property.

     “Award” shall mean any compensation paid by any Governmental Authority in connection
with a Condemnation in respect of all or any part of the Property.

     “Borrower Account” shall mean account #5235413681 entitled “Commercial
Limited Partnership” maintained by Borrower at BB&T, which account shall be under the exclusive
domain and control of Borrower.

2

 

     “Borrower Principal” shall mean Gladstone Commercial Corporation, a Delaware
corporation.

     “Business Day” shall mean a day on which Lender is open for the conduct of
substantially all of its banking business at its office in the city in which the Note is payable
(excluding Saturdays and Sundays).

     “Cash Management Account” shall have the meaning set forth in Section 10.1(a) hereof.

     “Cash Management Period” shall mean the period commencing on the earlier to occur of
(a) the occurrence and continuance of an Event of Default, (b) AFL Tenant vacates the AFL Space,
gives notice of its intent to vacate or does not give notice of its election to extend the term of
the AFL Lease in accordance with the provisions thereof for the entire AFL Space on or before
February 1, 2011 or (c) there is a monetary default of the AFL Lease which is not cured within
ninety (90) days, and ending on the earlier to occur of (i) AFL Tenant’s renewal of the AFL Lease
for the entire AFL Space, or (ii) occupancy of 100% of the AFL Space by Acceptable Replacement
Tenants.

     “Casualty” shall have the meaning set forth in Section 8.2.

     “Closing Date” shall mean the date of the funding of the Loan.

     “Control” shall have the meaning set forth in Section 7.1 hereof.

     “Condemnation” shall mean a temporary or permanent taking by any Governmental
Authority as the result, in lieu or in anticipation, of the exercise of the right of condemnation
or eminent domain, of all or any part of the Property, or any interest therein or right accruing
thereto, including any right of access thereto or any change of grade affecting the Property or any
part thereof.

     “Creditors Rights Laws” shall mean with respect to any Person any existing or future
law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization,
conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other relief with respect to its debts or debtors.

     “Debt” shall mean the outstanding principal amount set forth in, and evidenced by,
this Agreement and the Note together with all interest accrued and unpaid thereon and all other
sums due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage or any other
Loan Document.

     “Debt Service” shall mean, with respect to any particular period of time, scheduled
principal and/or interest payments under the Note.

     “Debt Service Coverage Ratio” shall mean, as of any date of determination, for the
applicable period of calculation, the ratio, as determined by Lender, of (i) Net Operating Income

3

 

to (ii) the aggregate amount of Debt Service which would be due for the same period assuming
the maximum principal amount of the Loan is outstanding and calculated at a mortgage constant equal
to 6.69% or such other mortgage constant as may be required from time to time by the Rating
Agencies.

     “Default” shall mean the occurrence of any event hereunder or under any other Loan
Document which, but for the giving of notice or passage of time, or both, would be an Event of
Default.

     “Default Rate” shall have the meaning set forth in the Note.

     “Eligible Account” shall mean a separate and identifiable account from all other funds
held by the holding institution that is either (a) an account or accounts maintained with a federal
or state chartered depository institution or trust company which complies with the definition of
Eligible Institution or (b) a segregated trust account or accounts maintained with the corporate
trust department of a federal or state chartered depository institution or trust company acting in
its fiduciary capacity which, in the case of a federally chartered depository institution or trust
company acting in its fiduciary capacity is subject to the regulations regarding adversary funds on
deposit therein under 12 C.F.R. §9.10(b), and in the case of a state chartered depository
institution or trust company, is subject to regulations substantially similar to 12 C.F.R.
§9.10(b), having in either case a combined capital surplus of at least $50,000,000 and subject to
supervision or examination by federal and state authority. An Eligible Account will not be
evidenced by a certificate of deposit, passbook or other instrument.

     “Eligible Institution” shall mean a depository institution or trust company insured by
the Federal Deposit Insurance Corporation, the short term unsecured debt obligations or commercial
paper of which are rated at least “A-1” by S&P, “P-1” by Moody’s and “F-1” by Fitch in the case of
accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which
funds are held for more than thirty (30) days, the long term unsecured debt obligations of which
are rated at least “AA-” by Fitch and S&P (or “A-” by S&P, if such depository’s short term
unsecured debt rating is at least “A-1” by S&P) and “Aa2” by Moody’s). Notwithstanding the
foregoing, prior to a Securitization, Bank of America, N.A. shall be an Eligible Institution.

     “Embargoed Person” shall mean any person identified by OFAC or any other Person with
whom a Person resident in the United States of America may not conduct business or transactions by
prohibition of federal law or Executive Order of the President of the United States of America.

     “Environmental Law” shall have the meaning set forth in Section 12.5 hereof.

     “Environmental Liens” shall have the meaning set forth in Section 12.5 hereof.

     “Environmental Report” shall have the meaning set forth in Section 12.5 hereof.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time and any successor statutes thereto and applicable regulations issued pursuant
thereto in temporary or final form.

4

 

     “Event of Default” shall have the meaning set forth in Section 11.1 hereof.

     “Excess Cash” shall mean an amount equal to all funds remaining in the Cash Management
Account on each Scheduled Payment Date following the disbursements and application of funds from
the Cash Management Account in accordance with the terms of Section 10.2(c)(i)-(vi) hereof.

     “Excess Cash Reserve Account” shall have the meaning set forth in Section 9.7 hereof.

     “Excess Cash Reserve Funds” shall have the meaning set forth in Section 9.7 hereof.

     “Extraordinary Expense” shall mean an operating expense or capital expenditure with
respect to the Property that (i) is not set forth on the Annual Budget and (ii) is not subject to
payment by withdrawals from the Replacement Reserve Account or the Leasing Reserve Account.
Borrower shall deliver promptly to Lender a reasonably detailed explanation of such proposed
Extraordinary Expense for the approval of Lender.

     “Extraordinary Expense Reserve Account” shall have the meaning set forth in Section
9.8 hereof.

     “Extraordinary Expense Reserve Funds” shall have the meaning set forth in Section 9.8
hereof.

     “Fitch” shall mean Fitch, Inc.

     “GAAP” shall mean generally accepted accounting principles in the United States of
America as of the date of the applicable financial report.

     “Governmental Authority” shall mean any court, board, agency, department, commission,
office or other authority of any nature whatsoever for any governmental unit (federal, state,
county, municipal, city, town, special district or otherwise) whether now or hereafter in
existence.

     “Hazardous Materials” shall have the meaning set forth in Section 12.5 hereof.

     “Improvements” shall have the meaning set forth in the granting clause of the
Mortgage.

     “Indemnified Parties” shall mean (a) Lender, (b) any prior owner or holder of the Loan
or Participations in the Loan, (c) any servicer or prior servicer of the Loan, (d) any Investor or
any prior Investor in any Securities, (e) any trustees, custodians or other fiduciaries who hold or
who have held a full or partial interest in the Loan for the benefit of any Investor or other third
party, (f) any receiver or other fiduciary appointed in a foreclosure or other Creditors Rights
Laws proceeding, (g) any officers, directors, shareholders, partners, members, employees, agents,
servants, representatives, contractors, subcontractors, affiliates or subsidiaries of any and all
of the foregoing, and (h) the heirs, legal representatives, successors and assigns of any and all

5

 

of the foregoing (including, without limitation, any successors by merger, consolidation or
acquisition of all or a substantial portion of the Indemnified Parties’ assets and business), in
all cases whether during the term of the Loan or as part of or following a foreclosure of the
Mortgage.

     “Individual Property” shall mean each separate tract or parcel of real property
identified in the legal description attached to the Mortgage, the Improvements thereon and all
Personal Property owned by Borrower and encumbered by the Mortgage, together with all rights
pertaining to such Property and Improvements, as more particularly described in each Mortgage and
referred to therein as the “Property”, including without limitation, the AFL Property and the
Little Arch Property

     “Insurance Premiums” shall have the meaning set forth in Section 8.1(b) hereof.

     “Insurance Proceeds” shall have the meaning set forth in Section 8.4(b) hereof.

     “Interest Bearing Reserve Accounts” shall mean all Reserve Accounts other than the Tax
and Insurance Reserve Account.

     “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended, as
it may be further amended from time to time, and any successor statutes thereto, and applicable
U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

     “Investor” shall have the meaning set forth in Section 13.3 hereof.

     “Lease” shall have the meaning set forth in the Mortgage.

     “Leasing Reserve Account” shall have the meaning set forth in Section 9.3(b) hereof.

     “Legal Requirements” shall mean all statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions of Governmental Authorities affecting the Property
or any part thereof, or the construction, use, alteration or operation thereof, whether now or
hereafter enacted and in force, and all permits, licenses, authorizations and regulations relating
thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments,
either of record or known to Borrower, at any time in force affecting the Property or any part
thereof, including, without limitation, any which may (a) require repairs, modifications or
alterations in or to the Property or any part thereof, or (b) in any way limit the use and
enjoyment thereof.

     “Letter of Credit Requirements” shall mean the requirements set forth on Schedule
II.

     “Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation,
assignment, security interest, or any other encumbrance, charge or transfer of, on or affecting
Borrower, the Property, any portion thereof or any interest therein, including, without limitation,
any conditional sale or other title retention agreement, any financing lease having substantially
the

6

 

same economic effect as any of the foregoing, the filing of any financing statement, and
mechanic’s, materialmen’s and other similar liens and encumbrances.

     “Little Arch Acceptable Replacement Tenant” shall have the meaning set forth in
Section 9.3(d) hereof.

     “Little Arch Acceptable Replacement Tenant Requirements” shall have the meaning set
forth in Section 9.3(d) hereof.

     “Little Arch Lease” shall mean that certain Lease of the Little Arch Property by and
between Little Arch, as Landlord, and Little Arch Tenant, as tenant, together with all amendments,
modifications, renewals and replacements therefore.

     “Little Arch Leasing Reserve Account” shall have the meaning set forth in Section
9.3(b).

     “Little Arch Partial Release Provisions” shall have the meaning set forth in Section
9.3(d) hereof.

     “Little Arch Property” shall mean the portion of the Property currently owned by
Little Arch.

     “Little Arch Space” shall mean the space currently occupied by the Little Arch Tenant
on the Little Arch Property.

     “Little Arch Tenant” shall mean the current tenant occupying the Little Arch Property
pursuant to a written lease agreement.

     “LLC Agreement” shall have the meaning set forth in Section 6.1(c).

     “Loan” shall mean the loan made by Lender to Borrower pursuant to this Agreement.

     “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgage, the
Assignment of Management Agreement, the certain Certificate and Agreement Regarding Property
Management dated the date hereof between AFL and Lender, the Lockbox Agreement following the
occurrence of a Lockbox Event, and any and all other documents, agreements and certificates
executed and/or delivered in connection with the Loan, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.

     “Lockbox” shall mean the post office address established pursuant to the Lockbox
Agreement and maintained by Lockbox Bank on behalf of Borrower and Lender pursuant to the terms
thereof and to which Borrower shall direct all Rents and other income from the Property be sent
pursuant to the Tenant Direction Letters.

     “Lockbox Account” shall have the meaning set forth in Section 10.1(a) hereof.

7

 

     “Lockbox Agreement” shall mean that certain Three Party Agreement Relating to Lockbox
Services to be executed by Borrower, Lender and Lockbox Bank, in form and substance satisfactory to
Lender in its discretion, as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, relating to the operation and maintenance of, and application of funds
in, the Lockbox Account.

     “Lockbox Bank” shall mean Bank of America, N.A. or any successor Eligible Institution
approved or appointed by Lender acting as Lockbox Bank under the Lockbox Agreement.

     “Lockbox Event” shall mean the occupancy of the Property by more than two (2) tenants.

     “Losses” shall mean any and all claims, suits, liabilities (including, without
limitation, strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs,
expenses, fines, penalties, charges, fees, judgments, awards, amounts paid in settlement of
whatever kind or nature (including but not limited to legal fees and other costs of defense).

     “Major Lease” shall mean as to the Property (i) any Lease which, individually or when
aggregated with all other leases at the Property with the same Tenant or its Affiliate, either (A)
accounts for five percent (5%) or more of the Property’s rental income, or (B) demises 5,000 square
feet or more of the Property’s gross leasable area, (ii) any Lease which contains any option,
offer, right of first refusal or other similar entitlement to acquire all or any portion of the
Property, or (iii) any instrument guaranteeing or providing credit support for any Lease meeting
the requirements of (i) or (ii) above.

     “Management Agreement” shall mean the management agreement entered into by and between
Borrower and Manager, pursuant to which Manager is to provide management and other services with
respect to the Property, as the same may be amended, restated, replaced, supplemented or otherwise
modified in accordance with the terms of this Agreement.

     “Manager” shall mean MCI Management LLC, a North Carolina limited liability company,
in the case of the Little Arch Property, and the Borrower, in the case of the AFL Property, or such
other entity selected as the manager of the Property in accordance with the terms of this
Agreement.

     “Maturity Date” shall have the meaning set forth in the Note.

     “Member” shall have the meaning set forth in Section 6.1(c ).

     “Mold” shall have the meaning set forth in Section 12.5 hereof.

     “Moody’s” shall mean Moody’s Investor Services, Inc.

     “Mortgage” shall mean, individually and collectively as the context may require, each
first priority mortgage/deed of trust/deed to secure debt and security agreement dated the date
hereof, executed and delivered by a Borrower as security for the Loan and encumbering any

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Individual Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

     “Net Operating Income” shall mean, with respect to any period of time, the amount
obtained by subtracting Operating Expenses from Operating Income, as such amount may be adjusted by
Lender in its good faith discretion based on Lender’s underwriting standards, including without
limitation, adjustments for vacancy allowance.

     “Net Proceeds” shall have the meaning set forth in Section 8.4(b) hereof.

     “Net Proceeds Deficiency” shall have the meaning set forth in Section 8.4(b)(vi)
hereof.

     “Note” shall mean that certain promissory note of even date herewith in the principal
amount of $21,757,000.00, made by Borrower in favor of Lender, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

     “OFAC” shall have the meaning set forth in Section 4.38 hereof.

     “Operating Expense Reserve Account” shall have the meaning set forth in Section 9.8
hereof.

     “Operating Expense Reserve Funds” shall have the meaning set forth in Section 9.8
hereof.

     “Operating Expenses” shall mean, with respect to any period of time, the total of all
expenses actually paid or payable, computed in accordance with GAAP, of whatever kind relating to
the operation, maintenance and management of the Property, including without limitation, utilities,
ordinary repairs and maintenance, Insurance Premiums, license fees, Taxes and Other Charges,
advertising expenses, payroll and related taxes, computer processing charges, management fees equal
to the greater of 3% of the Operating Income and the management fees actually paid under the
Management Agreement, operational equipment or other lease payments as approved by Lender,
normalized capital expenditures equal to $58,228.00 per annum (as adjusted in Lender’s discretion)
and normalized tenant improvement costs and/or leasing commissions equal to $173,556.00 per annum
(as adjusted in Lender’s discretion), but specifically excluding depreciation and
amortization, income taxes, Debt Service, any incentive fees due under the Management Agreement,
any item of expense that in accordance with GAAP should be capitalized but only to the extent the
same would qualify for funding from the Reserve Accounts, any item of expense that would otherwise
be covered by the provisions hereof but which is paid by any Tenant under such Tenant’s Lease or
other agreement, and deposits into the Reserve Accounts.

     “Operating Income” shall mean, with respect to any period of time, all income,
computed in accordance with GAAP, derived from the ownership and operation of the Property from
whatever source, including, but not limited to, Rents (using a vacancy rate equal to the
greater of market, actual or 13.5%), utility charges, escalations, forfeited security deposits,
interest on credit accounts, service fees or charges, license fees, parking fees, rent concessions
or

9

 

credits, and other required pass-throughs but excluding sales, use and occupancy or
other taxes on receipts required to be accounted for by Borrower to any Governmental Authority,
refunds and uncollectible accounts, sales of furniture, fixtures and equipment, interest income
from any source other than the escrow accounts, Reserve Accounts or other accounts required
pursuant to the Loan Documents, Insurance Proceeds (other than business interruption or other loss
of income insurance), Awards, percentage rent, unforfeited security deposits, utility and other
similar deposits, income from tenants not paying rent, income from tenants in bankruptcy,
non-recurring or extraordinary income, including, without limitation lease termination payments,
and any disbursements to Borrower from the Reserve Accounts.

     “Other Charges” shall mean all ground rents, maintenance charges, impositions other
than Taxes, and any other charges, including, without limitation, vault charges and license fees
for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or
assessed or imposed against the Property or any part thereof.

     “Participations” shall have the meaning set forth in Section 13.1 hereof.

     “Patriot Act” shall have the meaning set forth in Section 4.38 hereof.

     “Permitted Encumbrances” shall mean collectively, (a) the Lien and security interests
created by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title
Insurance Policy, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or
delinquent, and (d) such other title and survey exceptions as Lender has approved or may approve in
writing in Lender’s sole discretion, all of which Lender determines in the aggregate as of the date
hereof do not materially adversely affect the value or use of the Property or Borrower’s ability to
repay the Loan.

     “Permitted Investments” shall mean to the extent available from Lender or Lender’s
servicer for deposits in the Reserve Accounts and the Cash Management Account, any one or more of
the following obligations or securities acquired at a purchase price of not greater than par,
including those issued by a servicer of the Loan, the trustee under any securitization or any of
their respective Affiliates, payable on demand or having a maturity date not later than the
Business Day immediately prior to the date on which the funds used to acquire such investment are
required to be used under this Agreement and meeting one of the appropriate standards set forth
below:

     (a) obligations of, or obligations fully guaranteed as to payment of principal and interest
by, the United States or any agency or instrumentality thereof provided such obligations are backed
by the full faith and credit of the United States of America including, without limitation,
obligations of: the U.S. Treasury (all direct or fully guaranteed obligations), the Farmers Home
Administration (certificates of beneficial ownership), the General Services Administration
(participation certificates), the U.S. Maritime Administration (guaranteed Title XI financing), the
Small Business Administration (guaranteed participation certificates and guaranteed pool
certificates), the U.S. Department of Housing and Urban Development (local authority bonds) and the
Washington Metropolitan Area Transit Authority (guaranteed transit bonds); provided, however, that
the investments described in this clause must (i) have a

10

 

predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) be
rated “AAA” or the equivalent by each of the Rating Agencies, (iii) if rated by S&P, must not have
an “r” highlighter affixed to their rating, (iv) if such investments have a variable rate of
interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if
any) and must move proportionately with that index, and (v) such investments must not be subject to
liquidation prior to their maturity;

     (b) Federal Housing Administration debentures;

     (c) obligations of the following United States government sponsored agencies: Federal Home
Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated systemwide bonds and
notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage
Association (debt obligations), the Financing Corp. (debt obligations), and the Resolution Funding
Corp. (debt obligations); provided, however, that the investments described in this clause must (i)
have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if
rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments
have a variable rate of interest, such interest rate must be tied to a single interest rate index
plus a fixed spread (if any) and must move proportionately with that index, and (iv) such
investments must not be subject to liquidation prior to their maturity;

     (d) federal funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and
repurchase agreements with maturities of not more than 365 days of any bank, the short term
obligations of which at all times are rated in the highest short term rating category by each
Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the
highest short term rating category and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities); provided, however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated
by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a
variable rate of interest, such interest rate must be tied to a single interest rate index plus a
fixed spread (if any) and must move proportionately with that index, and (iv) such investments must
not be subject to liquidation prior to their maturity;

     (e) fully Federal Deposit Insurance Corporation-insured demand and time deposits in, or
certificates of deposit of, or bankers’ acceptances with maturities of not more than 365 days and
issued by, any bank or trust company, savings and loan association or savings bank, the short term
obligations of which at all times are rated in the highest short term rating category by each
Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the
highest short term rating category and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities); provided, however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated
by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a

11

 

variable rate of interest, such interest rate must be tied to a single interest rate index
plus a fixed spread (if any) and must move proportionately with that index, and (iv) such
investments must not be subject to liquidation prior to their maturity;

     (f) debt obligations with maturities of not more than 365 days and at all times rated by each
Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and
otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment
would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or,
if higher, then current ratings assigned to the Securities) in its highest long-term unsecured
rating category; provided, however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated
by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a
variable rate of interest, such interest rate must be tied to a single interest rate index plus a
fixed spread (if any) and must move proportionately with that index, and (iv) such investments must
not be subject to liquidation prior to their maturity;

     (g) commercial paper (including both non-interest-bearing discount obligations and
interest-bearing obligations payable on demand or on a specified date not more than one year after
the date of issuance thereof) with maturities of not more than 365 days and that at all times is
rated by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating
Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned to the Securities) in its highest short-term
unsecured debt rating; provided, however, that the investments described in this clause must (i)
have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if
rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments
have a variable rate of interest, such interest rate must be tied to a single interest rate index
plus a fixed spread (if any) and must move proportionately with that index, and (iv) such
investments must not be subject to liquidation prior to their maturity;

     (h) units of taxable money market funds with maturities of not more than 365 days, which funds
are regulated investment companies, seek to maintain a constant net asset value per share and
invest solely in obligations backed by the full faith and credit of the United States, which funds
have the highest rating available from each Rating Agency (or, if not rated by all Rating Agencies,
rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as
confirmed in writing that such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities) for money market funds; and

     (i) any other security, obligation or investment which has been approved as a Permitted
Investment in writing by (i) Lender and (ii) each Rating Agency, as evidenced by a written
confirmation that the designation of such security, obligation or investment as a Permitted
Investment will not, in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned to the Securities by such Rating Agency;

12

 

     provided, however, that no obligation or security shall be a Permitted Investment if (A) such
obligation or security evidences a right to receive only interest payments, (B) the right to
receive principal and interest payments on such obligation or security are derived from an
underlying investment that provides a yield to maturity in excess of one hundred twenty percent
(120%) of the yield to maturity at par of such underlying investment or (C) such obligation or
security has a remaining term to maturity in excess of one (1) year.

     “Person” shall mean any individual, corporation, partnership, joint venture, limited
liability company, estate, trust, unincorporated association, any federal, state, county or
municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

     “Personal Property” shall have the meaning set forth in the granting clause of the
Mortgage.

     “Policies” shall have the meaning specified in Section 8.1(b) hereof.

     “Prohibited Transfer” shall have the meaning set forth in Section 7.2 hereof.

     “Property” shall mean, individually or collectively as the context may require, each
and every Individual Property which is subject to the terms of this Agreement.

     “Property Condition Report” shall mean a report prepared by a company satisfactory to
Lender regarding the physical condition of the Property, satisfactory in form and substance to
Lender in its sole discretion.

     “Rating Agencies” shall mean each of S&P, Moody’s and Fitch, or any other
nationally-recognized statistical rating agency which has been approved by Lender.

     “REA” shall mean any construction, operation and reciprocal easement agreement or
similar agreement (including any separate agreement or other agreement between Borrower and one or
more other parties to an REA with respect to such REA) affecting the Property or portion thereof.

     “Release” shall have the meaning set forth in Section 12.5 hereof.

     “Rent Roll” shall have the meaning set forth in Section 4.25 hereof.

     “Rents” shall have the meaning set forth in the Mortgage.

     “Replacement Reserve Account” shall have the meaning set forth in Section 9.2(b)
hereof.

     “Replacement Reserve Funds” shall have the meaning set forth in Section 9.2(b) hereof.

13

 

     “Replacement Reserve Monthly Deposit” shall have the meaning set forth in Section
9.2(b) hereof.

     “Replacements” shall have the meaning set forth in Section 9.2(a) hereof.

     “Required Repair Account” shall have the meaning set forth in Section 9.1(b) hereof.

     “Required Repair Funds” shall have the meaning set forth in Section 9.1(b) hereof.

     “Required Repairs” shall have the meaning set forth in Section 9.1(a) hereof.

     “Required Work” shall have the meaning set forth in Section 9.4 hereof.

     “Reserve Accounts” shall mean the Required Repair Account and the following
sub-accounts of the Cash Management Account: the Tax and Insurance Reserve Account, the Replacement
Reserve Account, the Leasing Reserve Account, the Excess Cash Reserve Account, the Extraordinary
Expense Reserve Account, the Operating Expense Reserve Account or any other escrow account
established by the Loan Documents.

     “Reserve Funds” shall mean the Tax and Insurance Reserve Funds, the Replacement
Reserve Funds, the Required Repair Funds, the Leasing Reserve Funds, the Excess Cash Reserve Funds,
the Extraordinary Expense Reserve Funds, the Operating Expense Reserve Funds or any other escrow
funds established by the Loan Documents.

     “Restoration” shall mean, following the occurrence of a Casualty or a Condemnation
which is of a type necessitating the repair of the Property, the completion of the repair and
restoration of the Property as nearly as possible to the condition the Property was in immediately
prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by
Lender.

     “Restoration Consultant” shall have the meaning set forth in Section 8.4(b)(iii)
hereof.

     “Restoration Retainage” shall have the meaning set forth in Section 8.4(b)(iv) hereof.

     “Restricted Party” shall have the meaning set forth in Section 7.1 hereof.

     “Sale or Pledge” shall have the meaning set forth in Section 7.1 hereof.

     “Scheduled Payment Date” shall have the meaning set forth in the Note.

     “Securities” shall have the meaning set forth in Section 13.1 hereof.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Securitization” shall have the meaning set forth in Section 13.1 hereof.

14

 

     “Special Member” shall have the meaning set forth in Section 6.1(c).

     “SPE Component Entity” shall have the meaning set forth in Section 6.1(b) hereof.

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

     “State” shall mean the state in which the Property or any part thereof is located.

     “Tax and Insurance Reserve Funds” shall have the meaning set forth in Section 9.6
hereof.

     “Tax and Insurance Reserve Account” shall have the meaning set forth in Section 9.6
hereof.

     “Taxes” shall mean all real estate and personal property taxes, assessments, water
rates or sewer rents, now or hereafter levied or assessed or imposed against the Property or part
thereof.

     “Tenant” shall mean any Person leasing, subleasing or otherwise occupying any portion
of the Property under a Lease or other occupancy agreement with Borrower.

     “Tenant Direction Letter” shall have the meaning set forth in Section 10.2(a)(i) or
10.3(a)(i), as applicable.

     “Tenant Letter of Credit” shall have the meaning set forth in Section 9.10(a).

     “Termination Fee Deposit” shall have the meaning set forth in Section 9.3(b).

     “Title Insurance Policy” shall mean that certain ALTA (or its equivalent) mortgagee
title insurance policy issued with respect to the Property and insuring the lien of the Mortgage.

     “Transferee” shall have the meaning set forth in Section 7.5 hereof.

     “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as
in effect in the State where the applicable Property is located.

     Section 1.2 Principles of Construction

     All references to sections and schedules are to sections and schedules in or to this Agreement
unless otherwise specified. All uses of the word “including” shall mean “including, without
limitation” unless the context shall indicate otherwise. Unless otherwise specified, the words
“hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless
otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to
both the singular and plural forms of the terms so defined.

15

 

ARTICLE 2

GENERAL TERMS

     Section 2.1 The Loan

     Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make
and Borrower hereby agrees to accept the Loan on the Closing Date.

     Section 2.2 Disbursement to Borrower

     Borrower may request and receive only one borrowing in respect of the Loan and any amount
borrowed and repaid in respect of the Loan may not be reborrowed.

     Section 2.3 The Note, Mortgage and Loan Documents

     The Loan shall be evidenced by the Note and secured by the Mortgage and the other Loan
Documents.

     Section 2.4 Loan Payments

     The Loan and interest thereon shall be payable pursuant to the terms of the Note.

     Section 2.5 Loan Prepayments

     The Loan may not be prepaid, in whole or in part, except in strict accordance with the express
terms and conditions of the Note.

ARTICLE 3

CONDITIONS PRECEDENT

     Section 3.1 Conditions Precedent

     The obligation of Lender to make the Loan hereunder is subject to the fulfillment by Borrower
or waiver by Lender of all of the conditions precedent to closing set forth in the application or
term sheet for the Loan delivered by Borrower to Lender and any commitment or commitment rider to
the application for the Loan issued by Lender.

16

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

     Borrower and, where specifically indicated, Borrower Principal, represents and warrants to
Lender as of the Closing Date that:

     Section 4.1 Organization

     Borrower and Borrower Principal (when not an individual) each (a) has been duly organized and
is validly existing and in good standing with requisite power and authority to own its properties
and to transact the businesses in which it is now engaged, (b) is duly qualified to do business and
is in good standing in each jurisdiction where it is required to be so qualified in connection with
its properties, businesses and operations, (c) possesses all rights, licenses, permits and
authorizations, governmental or otherwise, necessary to entitle it to own its properties and to
transact the businesses in which it is now engaged, and the sole business of Borrower is the
ownership, management and operation of the Property, and (d) in the case of Borrower, has full
power, authority and legal right to mortgage, grant, bargain, sell, pledge, assign, warrant,
transfer and convey the Property pursuant to the terms of the Loan Documents, and in the case of
Borrower and each Borrower Principal, has full power, authority and legal right to keep and observe
all of the terms of the Loan Documents to which it is a party. Borrower and Borrower Principal
each represent and warrant that the chart attached hereto as Exhibit A sets forth an accurate
listing of the direct and indirect owners of the equity interests in Borrower, each SPE Component
Entity (if any) and each Borrower Principal (when not an individual).

     Section 4.2 Status of Borrower

     Borrower’s exact legal name is correctly set forth on the first page of this Agreement, on the
Mortgage and on any UCC-1 Financing Statements filed in connection with the Loan. Borrower is an
organization of the type specified on the first page of this Agreement. Borrower is incorporated
in or organized under the laws of the state of Delaware. Borrower’s principal place of business
and chief executive office, and the place where Borrower keeps its books and records, including
recorded data of any kind or nature, regardless of the medium of recording, including software,
writings, plans, specifications and schematics, has been for the preceding four months (or, if
less, the entire period of the existence of Borrower) the address of Borrower set forth on the
first page of this Agreement. Borrower’s organizational identification number, if any, assigned by
the state of incorporation or organization is correctly set forth on the first page of the Note.

     Section 4.3 Validity of Documents

     Borrower and Borrower Principal have taken all necessary action to authorize the execution,
delivery and performance of this Agreement and the other Loan Documents to which they are parties.
This Agreement and such other Loan Documents have been duly executed and delivered by or on behalf
of Borrower and Borrower Principal respectively and constitute the

17

 

legal, valid and binding obligations of Borrower and Borrower Principal enforceable against
Borrower and Borrower Principal in accordance with their respective terms, subject only to
applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and
subject, as to enforceability, to general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law).

     Section 4.4 No Conflicts

     The execution, delivery and performance of this Agreement and the other Loan Documents by
Borrower and Borrower Principal will not conflict with or result in a breach of any of the terms or
provisions of, or constitute a default under, or result in the creation or imposition of any lien,
charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or
assets of Borrower or Borrower Principal pursuant to the terms of any agreement or instrument to
which Borrower or Borrower Principal is a party or by which any of Borrower’s or Borrower
Principal’s property or assets is subject, nor will such action result in any violation of the
provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or Borrower Principal or any of Borrower’s or Borrower Principal’s
properties or assets, and any consent, approval, authorization, order, registration or
qualification of or with any Governmental Authority required for the execution, delivery and
performance by Borrower or Borrower Principal of this Agreement or any of the other Loan Documents
has been obtained and is in full force and effect.

     Section 4.5 Litigation

     There are no actions, suits or proceedings at law or in equity by or before any Governmental
Authority or other agency now pending or, to Borrower’s or Borrower Principal’s knowledge,
threatened against or affecting Borrower, Borrower Principal, Manager or the Property, which
actions, suits or proceedings, if determined against Borrower, Borrower Principal, Manager or the
Property, would materially adversely affect the condition (financial or otherwise) or business of
Borrower or Borrower Principal or the condition or ownership of the Property.

     Section 4.6 Agreements

     Borrower is not a party to any agreement or instrument or subject to any restriction which
would materially and adversely affect Borrower or the Property, or Borrower’s business, properties
or assets, operations or condition, financial or otherwise. Borrower is not in default in any
material respect in the performance, observance or fulfillment of any of the obligations, covenants
or conditions contained in any agreement or instrument to which it is a party or by which Borrower
or the Property is bound. Borrower has no material financial obligation under any agreement or
instrument to which Borrower is a party or by which Borrower or the Property is otherwise bound,
other than (a) obligations incurred in the ordinary course of the operation of the Property and (b)
obligations under the Loan Documents.

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     Section 4.7 Solvency

     Borrower and Borrower Principal have (a) not entered into the transaction or executed the
Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or defraud
any creditor and (b) received reasonably equivalent value in exchange for their respective
obligations under such Loan Documents. Giving effect to the Loan, the fair saleable value of the
assets of Borrower and Borrower Principal exceeds and will, immediately following the making of the
Loan, exceed the total liabilities of Borrower and Borrower Principal, including, without
limitation, subordinated, unliquidated, disputed and contingent liabilities. No petition in
bankruptcy has been filed against Borrower, Borrower Principal, any SPE Component Entity (if any)
or Affiliated Manager in the last ten (10) years, and neither Borrower nor Borrower Principal, any
SPE Component Entity (if any) or Affiliated Manager in the last ten (10) years has made an
assignment for the benefit of creditors or taken advantage of any Creditors Rights Laws. Neither
Borrower nor Borrower Principal, any SPE Component Entity (if any) or Affiliated Manager is
contemplating either the filing of a petition by it under any Creditors Rights Laws or the
liquidation of all or a major portion of Borrower’s assets or property, and Borrower has no
knowledge of any Person contemplating the filing of any such petition against Borrower or Borrower
Principal, any SPE Component Entity (if any) or Affiliated Manager.

     Section 4.8 Full and Accurate Disclosure

     No statement of fact made by or on behalf of Borrower or Borrower Principal in this Agreement
or in any of the other Loan Documents or in any other document or certificate delivered by or (to
Borrower’s or Borrower Principal’s, as applicable, knowledge) on behalf of Borrower or Borrower
Principal contains any untrue statement of a material fact or omits to state any material fact
necessary to make statements contained herein or therein not misleading. There is no material fact
presently known to Borrower or Borrower Principal which has not been disclosed to Lender which
adversely affects, nor as far as Borrower or Borrower Principal can reasonably foresee, might
adversely affect, the Property or the business, operations or condition (financial or otherwise) of
Borrower or Borrower Principal.

     Section 4.9 No Plan Assets

     Borrower is not an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to
Title I of ERISA, and none of the assets of Borrower constitutes or will constitute “plan assets”
of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a)
Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA and (b)
transactions by or with Borrower are not subject to state statutes regulating investment of, and
fiduciary obligations with respect to, governmental plans similar to the provisions of Section 406
of ERISA or Section 4975 of the Internal Revenue Code currently in effect, which prohibit or
otherwise restrict the transactions contemplated by this Agreement.

     Section 4.10 Not a Foreign Person

     Neither Borrower nor Borrower Principal is a foreign corporation, foreign partnership, foreign
trust, foreign estate or nonresident alien or a disregarded entity owned by any of them (as

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those terms are defined in the Internal Revenue Code of 1986), and if requested by Lender,
Borrower or Borrower Principal will so certify (or in the case of a disregarded entity, its owner
will certify) to a Lender or a person designated by Lender under penalties of perjury to the
accuracy of this representation, and will provide in such certification such additional information
as Lender may reasonably request.

     Section 4.11 Enforceability

     The Loan Documents are not subject to any right of rescission, set-off, counterclaim or
defense by Borrower, including the defense of usury, nor would the operation of any of the terms of
the Loan Documents, or the exercise of any right thereunder, render the Loan Documents
unenforceable, and neither Borrower nor Borrower Principal has asserted any right of rescission,
set-off, counterclaim or defense with respect thereto. No Default or Event of Default exists under
or with respect to any Loan Document.

     Section 4.12 Business Purposes

     The Loan is solely for the business purpose of Borrower, and is not for personal, family,
household, or agricultural purposes.

     Section 4.13 Compliance

     Borrower and, to Borrower’s knowledge, the Property, and the use and operation thereof, comply
in all material respects with all Legal Requirements, including, without limitation, building and
zoning ordinances and codes and the Americans with Disabilities Act. To Borrower’s knowledge,
Borrower is not in default or violation of any order, writ, injunction, decree or demand of any
Governmental Authority and Borrower has received no written notice of any such default or
violation. There has not been committed by Borrower or, to Borrower’s knowledge, any other Person
in occupancy of or involved with the operation or use of the Property any act or omission affording
any Governmental Authority the right of forfeiture as against the Property or any part thereof or
any monies paid in performance of Borrower’s obligations under any of the Loan Documents.

     Section 4.14 Financial Information

     All financial data, including, without limitation, the balance sheets, statements of cash
flow, statements of income and operating expense and rent rolls, that have been delivered to Lender
in respect of Borrower, any Borrower Principal and/or the Property (a) are true, complete and
correct in all material respects, (b) accurately represent the financial condition of Borrower,
Borrower Principal or the Property, as applicable, as of the date of such reports, and (c) to the
extent prepared or audited by an independent certified public accounting firm, to Borrower’s
knowledge, have been prepared in accordance with GAAP throughout the periods covered, except as
disclosed therein. Borrower does not have any contingent liabilities, liabilities for taxes,
unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable
commitments that are known to Borrower and reasonably likely to have a material adverse effect on
the Property or the current and/or intended operation thereof, except as referred

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to or reflected in said financial statements. Since the date of such financial statements,
there has been no materially adverse change in the financial condition, operations or business of
Borrower or Borrower Principal from that set forth in said financial statements.

     Section 4.15 Condemnation

     No Condemnation or other proceeding has been commenced or, to Borrower’s knowledge, is
threatened or contemplated with respect to all or any portion of the Property or for the relocation
of roadways providing access to the Property.

     Section 4.16 Utilities and Public Access; Parking

     The Property has adequate rights of access to public ways and is served by water, sewer,
sanitary sewer and storm drain facilities adequate to service the Property for full utilization of
the Property for its intended uses. All public utilities necessary to the full use and enjoyment
of the Property as currently used and enjoyed are located either in the public right-of-way
abutting the Property (which are connected so as to serve the Property without passing over other
property) or in recorded easements serving the Property and such easements are set forth in and
insured by the Title Insurance Policy. All roads necessary for the use of the Property for its
current purposes have been completed and dedicated to public use and accepted by all Governmental
Authorities. To Borrower’s knowledge, the Property has, or is served by, parking to the extent
required to comply with all Legal Requirements.

     Section 4.17 Separate Lots

     The Property is assessed for real estate tax purposes as one or more wholly independent tax
lot or lots, separate from any adjoining land or improvements not constituting a part of such lot
or lots, and no other land or improvements is assessed and taxed together with the Property or any
portion thereof.

     Section 4.18 Assessments

     To Borrower’s knowledge, there are no pending or proposed special or other assessments for
public improvements or otherwise affecting the Property, nor are there any contemplated
improvements to the Property that may result in such special or other assessments.

     Section 4.19 Insurance

     Borrower has obtained and has delivered to Lender certified copies of all Policies or, to the
extent such Policies are not available as of the Closing Date, certificates of insurance with
respect to all such Policies reflecting the insurance coverages, amounts and other requirements set
forth in this Agreement. To Borrower’s knowledge, no claims have been made under any of the
Policies, and to Borrower’s knowledge, no Person, including Borrower, has done, by act or omission,
anything which would impair the coverage of any of the Policies.

21

 

     Section 4.20 Use of Property

     The Property is used exclusively for office and industrial purposes and other appurtenant and
related uses.

     Section 4.21 Certificate of Occupancy; Licenses

     To Borrower’s knowledge, all certifications, permits, licenses and approvals, including,
without limitation, certificates of completion or occupancy and any applicable liquor license
required for the legal use, occupancy and operation of the Property for the purpose intended
herein, have been obtained and are valid and in full force and effect. Borrower shall keep and
maintain (or cause to be kept and maintained) all licenses necessary for the operation of the
Property for the purpose intended herein. The use being made of the Property is in conformity with
the certificate of occupancy (or compliance, if applicable) and any other permits or licenses
issued for the Property.

     Section 4.22 Flood Zone

     None of the Improvements on the Property are located in an area identified by the Federal
Emergency Management Agency as an area having special flood hazards, or, if any portion of the
Improvements is located within such area, Borrower has obtained the insurance prescribed in Section
8.1(a)(i).

     Section 4.23 Physical Condition

     Except as set forth in the Property Condition Report, to Borrower’s knowledge after due
inquiry, the Property, including, without limitation, all buildings, improvements, parking
facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire
protection systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components, are in good condition, order and
repair in all material respects. Except as set forth in the Property Condition Report, to
Borrower’s knowledge after due inquiry, there exists no structural or other material defects or
damages in the Property, as a result of a Casualty or otherwise, and whether latent or otherwise.
Borrower has not received notice from any insurance company or bonding company of any defects or
inadequacies in the Property, or any part thereof, which would adversely affect the insurability of
the same or cause the imposition of extraordinary premiums or charges thereon or of any termination
or threatened termination of any policy of insurance or bond.

     Section 4.24 Boundaries

     (a) None of the Improvements which were included in determining the appraised value of the
Property lie outside the boundaries and building restriction lines of the Property to any material
extent, and (b) no improvements on adjoining properties encroach upon the Property and no easements
or other encumbrances upon the Property encroach upon any of the Improvements so as to materially
affect the value or marketability of the Property.

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     Section 4.25 Leases and Rent Roll

     Borrower has delivered to Lender a true, correct and complete rent roll for the Property (a
“Rent Roll”) which includes all Leases affecting the Property (including schedules for all executed
Leases for Tenants not yet in occupancy or under which the rent commencement date has not
occurred). Except as set forth in the Rent Roll (as same has been updated by written notice
thereof to Lender) and estoppel certificates delivered to Lender on or prior to the Closing Date:
(a) each Lease is in full force and effect; (b) the premises demised under the Leases have been
completed and the Tenants under the Leases have accepted possession of and are in occupancy of all
of their respective demised premises; (c) the Tenants under the Leases have commenced the payment
of rent under the Leases, there are no offsets, claims or defenses to the enforcement thereof, and
Borrower has no monetary obligations to any Tenant under any Lease; (d) all Rents due and payable
under the Leases have been paid and no portion thereof has been paid for any period more than
thirty (30) days in advance; (e) the rent payable under each Lease is the amount of fixed rent set
forth in the Rent Roll, and there is no claim or basis for a claim by the Tenant thereunder for an
offset or adjustment to the rent; (f) no Tenant has made any written claim of a material default
against the landlord under any Lease which remains outstanding nor has Borrower or Manager
received, by telephonic, in-person, e-mail or other communication, any notice of a material default
under any Lease; (g) to Borrower’s knowledge there is no present material default by the Tenant
under any Lease; (h) all security deposits under the Leases have been collected by Borrower; (i)
Borrower is the sole owner of the entire landlord’s interest in each Lease; (j) each Lease is the
valid, binding and enforceable obligation of Borrower and the applicable Tenant thereunder and
there are no agreements with the Tenants under the Leases other than as expressly set forth in the
Leases; (k) no Person has any possessory interest in, or right to occupy, the Property or any
portion thereof except under the terms of a Lease; (l) none of the Leases contains any option or
offer to purchase or right of first refusal to purchase the Property or any part thereof; (m)
neither the Leases nor the Rents have been assigned, pledged or hypothecated except to Lender, and
no other Person has any interest therein except the Tenants thereunder; and (n) no conditions exist
which now give any Tenant or party the right to “go dark” pursuant to the provision of its Lease
and/or any applicable REA.

     Section 4.26 Filing and Recording Taxes

     All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid
by any Person under applicable Legal Requirements currently in effect in connection with the
execution, delivery, recordation, filing, registration, perfection or enforcement of any of the
Loan Documents, including, without limitation, the Mortgage, have been paid or will be paid.

     Section 4.27 Management Agreement

     The Management Agreement is in full force and effect and there is no default thereunder by any
party thereto and, to Borrower’s knowledge, no event has occurred that, with the passage of time
and/or the giving of notice would constitute a default thereunder. No management fees under the
Management Agreement are accrued and unpaid.

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     Section 4.28 Illegal Activity

     To Borrower’s knowledge, no portion of the Property has been or will be purchased, improved,
equipped or fixtured with proceeds of any illegal activity, and no part of the proceeds of the Loan
will be used in connection with any illegal activity.

     Section 4.29 Construction Expenses

     All costs and expenses of any and all labor, materials, supplies and equipment used in the
construction maintenance or repair of the Improvements have been paid in full. To Borrower’s
knowledge after due inquiry, there are no claims for payment for work, labor or materials affecting
the Property which are or may become a lien prior to, or of equal priority with, the Liens created
by the Loan Documents.

     Section 4.30 Personal Property

     Borrower has paid in full for, and is the owner of, all Personal Property (other than tenants’
property) used in connection with the operation of the Property, free and clear of any and all
security interests, liens or encumbrances, except for Permitted Encumbrances and the Lien and
security interest created by the Loan Documents.

     Section 4.31 Taxes

     Borrower and Borrower Principal have filed all federal, state, county, municipal, and city
income, personal property and other tax returns required to have been filed by them and have paid
all taxes and related liabilities which have become due pursuant to such returns or pursuant to any
assessments received by them. Neither Borrower nor Borrower Principal knows of any basis for any
additional assessment in respect of any such taxes and related liabilities for prior years.

     Section 4.32 Permitted Encumbrances

     None of the Permitted Encumbrances, individually or in the aggregate, materially interferes
with the benefits of the security intended to be provided by the Loan Documents, materially and
adversely affects the value of the Property, impairs the use or the operation of the Property or
impairs Borrower’s ability to pay its obligations in a timely manner.

     Section 4.33 Federal Reserve Regulations

     No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring
any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System or for any other purpose which would be inconsistent with such Regulation U or any
other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements
or prohibited by the terms and conditions of this Agreement or the other Loan Documents.

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     Section 4.34 Investment Company Act

     Borrower is not (a) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding
company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding
company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of
1935, as amended; or (c) subject to any other federal or state law or regulation which purports to
restrict or regulate its ability to borrow money.

     Section 4.35 Reciprocal Easement Agreements

     (a) Neither Borrower, nor any other party is currently in default (nor has any notice been
given or received with respect to an alleged or current default) under any of the terms and
conditions of any applicable REA, and such REA remains unmodified and in full force and effect;

     (b) All easements granted pursuant to any applicable REA which were to have survived the site
preparation and completion of construction (to the extent that the same has been completed), remain
in full force and effect and have not been released, terminated, extinguished or discharged by
agreement or otherwise;

     (c) All sums due and owing by Borrower to the other parties to any applicable REA (or by the
other parties to such REA to the Borrower) pursuant to the terms of such REA, including without
limitation, all sums, charges, fees, assessments, costs, and expenses in connection with any taxes,
site preparation and construction, non-shareholder contributions, and common area and other
property management activities have been paid, are current, and no lien has attached on the
Property (or threat thereof been made) for failure to pay any of the foregoing;

     (d) The terms, conditions, covenants, uses and restrictions contained in any applicable REA do
not conflict in any manner with any terms, conditions, covenants, uses and restrictions contained
in any Lease or in any agreement between Borrower and occupant of any peripheral parcel, including
without limitation, conditions and restrictions with respect to kiosk placement, tenant
restrictions (type, location or exclusivity), sale of certain goods or services, and/or other use
restrictions; and

     (e) The terms, conditions, covenants, uses and restrictions contained in each Lease do not
conflict in any manner with any terms, conditions, covenants, uses and restrictions contained in
any applicable REA, any other Lease or in any agreement between Borrower and occupant of any
peripheral parcel, including without limitation, conditions and restrictions with respect to kiosk
placement, tenant restrictions (type, location or exclusivity), sale of certain goods or services,
and/or other use restrictions.

     Section 4.36 No Change in Facts or Circumstances; Disclosure

     All information submitted by Borrower or its agents to Lender and in all financial statements,
rent rolls, reports, certificates and other documents submitted in connection with the

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Loan or in satisfaction of the terms thereof and all statements of fact made by Borrower in
this Agreement or in any other Loan Document, are accurate, complete and correct in all material
respects. There has been no material adverse change in any condition, fact, circumstance or event
that would make any such information inaccurate, incomplete or otherwise misleading in any material
respect or that otherwise materially and adversely affects or might materially and adversely affect
the Property or the business operations or the financial condition of Borrower. Borrower has
disclosed to Lender all material facts of which Borrower is aware and has not failed to disclose
any material fact that could cause any representation or warranty made herein to be materially
misleading.

     Section 4.37 Intellectual Property

     All trademarks, trade names and service marks necessary to the business of Borrower as
presently conducted or as Borrower contemplates conducting its business are in good standing and,
to the extent of Borrower’s actual knowledge, uncontested. Borrower has not infringed, is not
infringing, and has not received notice of infringement with respect to asserted trademarks, trade
names and service marks of others. To Borrower’s knowledge, there is no infringement by others of
trademarks, trade names and service marks of Borrower.

     Section 4.38 Compliance with Anti-Terrorism Laws

     None of Borrower, Borrower Principal or any Person who Controls Borrower or Borrower Principal
currently is identified by the Office of Foreign Assets Control, Department of the Treasury
(“OFAC”) or otherwise qualifies as a Embargoed Person, and Borrower has implemented procedures to
ensure that no Person who now or hereafter owns a direct or indirect equity interest in Borrower is
an Embargoed Person or is Controlled by an Embargoed Person. None of Borrower or Borrower Principal
is in violation of any applicable law relating to anti-money laundering or anti-terrorism,
including, without limitation, those related to transacting business with Embargoed Persons or the
requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, U.S. Public Law 107-56, and the related regulations
issued thereunder, including temporary regulations (collectively, as the same may be amended from
time to time, the “Patriot Act”). To Borrower’s knowledge, no tenant at the Property is currently
identified by OFAC or otherwise qualifies as an Embargoed Person, or is owned or Controlled by an
Embargoed Person. Borrower has determined that Manager has implemented procedures approved by
Borrower to ensure that no tenant at the Property is currently identified by OFAC or otherwise
qualifies as an Embargoed Person, or is owned or Controlled by an Embargoed Person.

     Section 4.39 Patriot Act

     Neither Borrower nor Borrower Principal shall (a) be or become subject at any time to any law,
regulation, or list of any government agency (including, without limitation, the list maintained by
OFAC and accessible through the OFAC website) that prohibits or limits any lender from making any
advance or extension of credit to Borrower or from otherwise conducting business with Borrower and
Borrower Principal, or (b) fail to provide documentary and other evidence of Borrower’s identity as
may be requested by any lender at any time to

26

 

enable any lender to verify Borrower’s identity or to comply with any applicable law or
regulation, including, without limitation, the Patriot Act. In addition, Borrower hereby agrees to
provide to Lender any additional information that Lender deems necessary from time to time in order
to ensure compliance with all applicable laws concerning money laundering and similar activities.

     Section 4.40 Survival

     Borrower agrees that, unless expressly provided otherwise, all of the representations and
warranties of Borrower set forth in this Section 4.40 and elsewhere in this Agreement and in the
other Loan Documents shall survive for so long as any portion of the Debt remains owing to Lender.
All representations, warranties, covenants and agreements made in this Agreement or in the other
Loan Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding any
investigation heretofore or hereafter made by Lender or on its behalf.

ARTICLE 5

BORROWER COVENANTS

     From the date hereof and until repayment of the Debt in full and performance in full of all
obligations of Borrower under the Loan Documents or the earlier release of the Lien of the Mortgage
(and all related obligations) in accordance with the terms of this Agreement and the other Loan
Documents, Borrower hereby covenants and agrees with Lender that:

     Section 5.1 Existence; Compliance with Requirements

     (a) Borrower shall do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its existence, rights, licenses, permits and franchises and comply with all
Legal Requirements applicable to it and the Property. Borrower hereby covenants and agrees not to
commit, permit or suffer to exist any act or omission affording any Governmental Authority the
right of forfeiture as against the Property or any part thereof or any monies paid in performance
of Borrower’s obligations under any of the Loan Documents. Borrower shall at all times maintain,
preserve and protect all franchises and trade names used in connection with the operation of the
Property.

     (b) After prior written notice to Lender, Borrower, at its own expense, may contest by
appropriate legal proceeding, promptly initiated and conducted in good faith and with due
diligence, the Legal Requirements affecting the Property, provided that (i) no Default or Event of
Default has occurred and is continuing; (ii) such proceeding shall be permitted under and be
conducted in accordance with the provisions of any other instrument to which Borrower or the
Property is subject and shall not constitute a default thereunder; (iii) neither the Property, any
part thereof or interest therein, any of the tenants or occupants thereof, nor Borrower shall be
affected in any material adverse way as a result of such proceeding; (iv) non-compliance with the
Legal Requirements shall not impose civil or criminal liability on Borrower or Lender; (v) Borrower
shall have furnished the security as may be required in the proceeding or by Lender

27

 

to ensure compliance by Borrower with the Legal Requirements; and (vi) Borrower shall have
furnished to Lender all other items reasonably requested by Lender.

     Section 5.2 Maintenance and Use of Property

     Borrower shall cause the Property to be maintained in a good and safe condition and repair.
The Improvements and the Personal Property shall not be removed, demolished or other than in
accordance with the provisions of Section 5.21, materially altered (except for normal replacement
of the Personal Property) by, on behalf of or with the consent of Borrower without the consent of
Lender. If under applicable zoning provisions the use of all or any portion of the Property is or
shall become a nonconforming use, Borrower will not cause or permit the nonconforming use to be
discontinued or the nonconforming Improvement to be abandoned without the express written consent
of Lender.

     Section 5.3 Waste

     Borrower shall not commit or suffer any waste of the Property or make any change in the use of
the Property which will in any way materially increase the risk of fire or other hazard arising out
of the operation of the Property, or take any action that might invalidate or give cause for
cancellation of any Policy, or do or permit to be done thereon anything that may in any way impair
the value of the Property or the security for the Loan. Borrower will not, without the prior
written consent of Lender, permit any drilling or exploration for or extraction, removal, or
production of any minerals from the surface or the subsurface of the Property, regardless of the
depth thereof or the method of mining or extraction thereof.

     Section 5.4 Taxes and Other

     (a) Borrower shall pay or shall caused to be paid all Taxes and Other Charges now or hereafter
levied or assessed or imposed against the Property or any part thereof as the same become due and
payable; provided, however, Borrower’s obligation to directly pay Taxes shall be suspended for so
long as Borrower complies with the terms and provisions of Section 9.6 hereof. Borrower shall
furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the
same shall become delinquent (provided, however, that Borrower is not required to furnish such
receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to
Section 9.6 hereof). Borrower shall not suffer and shall promptly cause to be paid and discharged
any Lien or charge whatsoever which may be or become a Lien or charge against the Property, and
shall promptly pay for all utility services provided to the Property.

     (b) After prior written notice to Lender, Borrower, at its own expense, may contest by
appropriate legal proceeding, promptly initiated and conducted in good faith and with due
diligence, the amount or validity or application in whole or in part of any Taxes or Other Charges,
provided that (i) no Default or Event of Default has occurred and remains uncured; (ii) such
proceeding shall be permitted under and be conducted in accordance with the provisions of any other
instrument to which Borrower is subject and shall not constitute a default thereunder and such
proceeding shall be conducted in accordance with all applicable Legal Requirements;

28

 

(iii) neither the Property nor any part thereof or interest therein will be in danger of being
sold, forfeited, terminated, canceled or lost; (iv) Borrower shall promptly upon final
determination thereof pay the amount of any such Taxes or Other Charges, together with all costs,
interest and penalties which may be payable in connection therewith; (v) such proceeding shall
suspend the collection of such contested Taxes or Other Charges from the Property; and (vi)
Borrower shall furnish such security as may be required in the proceeding, or deliver to Lender
such reserve deposits as may be requested by Lender, to insure the payment of any such Taxes or
Other Charges, together with all interest and penalties thereon (unless Borrower has paid all of
the Taxes or Other Charges under protest). Lender may pay over any such cash deposit or part
thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of
Lender, the entitlement of such claimant is established or the Property (or part thereof or
interest therein) shall be in danger of being sold, forfeited, terminated, canceled or lost or
there shall be any danger of the Lien of the Mortgage being primed by any related Lien.

     Section 5.5 Litigation

     Borrower shall give prompt written notice to Lender of any litigation or governmental
proceedings pending or threatened in writing against Borrower which might materially adversely
affect Borrower’s condition (financial or otherwise) or business or the Property.

     Section 5.6 Access to Property

     Subject to the rights of Tenants under Leases, Borrower shall permit agents, representatives
and employees of Lender to inspect the Property or any part thereof at reasonable hours upon
reasonable advance notice.

     Section 5.7 Notice of Default

     Borrower shall promptly advise Lender of any material adverse change in the condition
(financial or otherwise) of Borrower, Borrower Principal or the Property or of the occurrence of
any Default or Event of Default of which Borrower has knowledge.

     Section 5.8 Cooperate in Legal Proceedings

     Borrower shall at Borrower’s expense cooperate fully with Lender with respect to any
proceedings before any court, board or other Governmental Authority which may in any way affect the
rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents
and, in connection therewith, permit Lender, at its election, to participate in any such
proceedings.

     Section 5.9 Performance by

     Borrower shall in a timely manner observe, perform and fulfill each and every covenant, term
and provision to be observed and performed by Borrower under this Agreement and the other Loan
Documents and any other agreement or instrument affecting or pertaining to the Property and any
amendments, modifications or changes thereto.

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     Section 5.10 Awards; Insurance Proceeds

     Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or
Insurance Proceeds lawfully or equitably payable in connection with the Property, and Lender shall
be reimbursed for any expenses incurred in connection therewith (including reasonable, actual
attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on
behalf of Lender in case of a Casualty or Condemnation affecting the Property or any part thereof)
out of such Awards or Insurance Proceeds.

     Section 5.11 Financial Reporting

     (a) Borrower and Borrower Principal shall keep adequate books and records of account in
accordance with GAAP, or in accordance with other methods acceptable to Lender in its sole
discretion, consistently applied and shall furnish to Lender:

      (i) quarterly and annual (and prior to a Securitization, if requested by Lender,
monthly) certified rent rolls signed and dated by Borrower, detailing the names of all
Tenants of the Improvements, the portion of Improvements (in terms of square footage)
occupied by each Tenant, the base rent, additional rent and any other charges payable under
each Lease (including annual store sales required to be reported by Tenant under any Lease),
and the term of each Lease, including the commencement and expiration dates and any tenant
extension, expansion or renewal options, the extent to which any Tenant is in default under
any Lease, and any other information as is reasonably required by Lender, within twenty (20)
days after the end of each calendar month, thirty (30) days after the end of each fiscal
quarter or sixty (60) days after the close of each fiscal year of Borrower, as applicable;

      (ii) quarterly and annual (and prior to a Securitization, if requested by Lender,
monthly) operating statements of the Property, prepared and certified by Borrower in the
form required by Lender (or if required by Lender following an Event of Default, an audited
annual operating statement prepared by an independent certified public accountant acceptable
to Lender), detailing the revenues received, the expenses incurred and the net operating
income before and after debt service (principal and interest) and major capital improvements
for the period of calculation and containing appropriate year-to-date information, within
twenty (20) days after the end of each calendar month, thirty (30) days after the end of
each fiscal quarter or sixty (60) days after the close of each fiscal year of Borrower, as
applicable; and

      (iii) annual balance sheets, profit and loss statements, statements of cash flows, and
statements of change in financial position of Borrower and Borrower Principal in the form
required by Lender, prepared and certified by Borrower and Borrower Principal (or if
required by Lender following an Event of Default, annual audited financial statements
prepared by an independent certified public accountant acceptable to Lender), within ninety
(90) days after the close of each fiscal year of Borrower and Borrower Principal, as the
case may be; and

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      (iv) during any Cash Management Period, an Annual Budget not later than thirty (30)
days prior to the commencement of each fiscal year of Borrower in form reasonably
satisfactory to Lender. In the event that Lender objects to a proposed Annual Budget
submitted by Borrower, Lender shall advise Borrower of such objections within fifteen (15)
days after receipt thereof (and deliver to Borrower a reasonably detailed description of
such objections) and Borrower shall promptly revise such Annual Budget and resubmit the same
to Lender. Lender shall advise Borrower of any objections to such revised Annual Budget
within ten (10) days after receipt thereof (and deliver to Borrower a reasonably detailed
description of such objections) and Borrower shall promptly revise the same in accordance
with the process described in this subsection until Lender approves the Annual Budget.
Until such time that Lender approves a proposed Annual Budget, which approval shall not be
unreasonably withheld, conditioned or delayed, the most recent Annual Budget shall apply;
provided that, such approved Annual Budget shall be adjusted to reflect actual increases in
Taxes, Insurance Premiums, utilities expenses and expenses under the Management Agreement.

     (b) Upon request from Lender, Borrower shall promptly furnish to Lender:

      (i) a property management report for the Property, showing the number of inquiries made
and/or rental applications received from tenants or prospective tenants and deposits
received from tenants and any other information requested by Lender, in reasonable detail
and certified by Borrower under penalty of perjury to be true and complete, but no more
frequently than quarterly;

      (ii) an accounting of all security deposits held in connection with any Lease of any
part of the Property, including the name and identification number of the accounts in which
such security deposits are held, the name and address of the financial institutions in which
such security deposits are held and the name of the Person to contact at such financial
institution, along with any authority or release necessary for Lender to obtain information
regarding such accounts directly from such financial institutions; and

      (iii) a report of all letters of credit provided by any Tenant in connection with any
Lease of any part of the Property, including the account numbers of such letters of credit,
the names and addresses of the financial institutions that issued such letters of credit and
the names of the Persons to contact at such financial institutions, along with any authority
or release necessary for Lender to obtain information regarding such letters of credit
directly from such financial institutions.

     (c) Borrower and Borrower Principal shall furnish Lender with such other additional financial
or management information (including state and federal tax returns) as may, from time to time, be
reasonably required by Lender in form and substance reasonably satisfactory to Lender (including,
without limitation, any financial reports required to be delivered by any Tenant or any guarantor
of any Lease pursuant to the terms of such Lease), and shall furnish to

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Lender and its agents convenient facilities for the examination and audit of any such books
and records.

     (d) All items requiring the certification of Borrower shall, except where Borrower is an
individual, require a certificate executed by the general partner, managing member or chief
executive officer of Borrower, as applicable (and the same rules shall apply to any sole
shareholder, general partner or managing member which is not an individual).

     (e) Without limiting any other rights available to Lender under this Loan Agreement or any of
the other Loan Documents, in the event Borrower shall fail to furnish Lender any financial document
or statement in accordance with this Section 5.11 on or before the applicable date specified
herein, Borrower shall promptly pay to Lender a non-refundable charge in the amount of $500 for
each such failure. The payment of such amount shall not be construed to relieve Borrower of any
Event of Default hereunder arising from such failure.

     Section 5.12 Estoppel Statement

     (a) After request by Lender, Borrower shall within ten (10) Business Days furnish Lender with
a statement, duly acknowledged and certified, setting forth (i) the amount of the original
principal amount of the Note, (ii) the rate of interest on the Note, (iii) the unpaid principal
amount of the Note, (iv) the date installments of interest and/or principal were last paid, (v) any
offsets or defenses to the payment of the Debt, if any, and (vi) that the Note, this Agreement, the
Mortgage and the other Loan Documents are valid, legal and binding obligations and have not been
modified or if modified, giving particulars of such modification.

     (b) Borrower shall use commercially reasonable efforts to deliver to Lender, promptly upon
request, duly executed estoppel certificates from any one or more Tenants as required by Lender
attesting to such facts regarding the related Lease as Lender may require, including, but not
limited to attestations that each Lease covered thereby is in full force and effect with no
defaults thereunder on the part of any party, that none of the Rents have been paid more than one
month in advance, except as security, and that the Tenant claims no defense or offset against the
full and timely performance of its obligations under the Lease.

     Section 5.13 Leasing Matters

     (a) Borrower may enter into a proposed Lease (including the renewal or extension of an
existing Lease (a “Renewal Lease”)) without the prior written consent of Lender, provided such
proposed Lease or Renewal Lease (i) provides for rental rates and terms comparable to existing
local market rates and terms (taking into account the type and quality of the tenant) as of the
date such Lease is executed by Borrower (unless, in the case of a Renewal Lease, the rent payable
during such renewal, or a formula or other method to compute such rent, is provided for in the
original Lease), (ii) is an arm’s-length transaction with a bona fide, independent third party
tenant, (iii) does not have a materially adverse effect on the value of the Property taken as a
whole, (iv) is subject and subordinate to the Mortgage and the Tenant thereunder agrees to attorn
to Lender, (v) does not contain any option, offer, right of first refusal, or other similar right
to acquire all or any portion of the Property, (vi) has a base term of less than fifteen (15) years

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including options to renew, (vii) has no rent, credits, free rents or concessions granted
thereunder, and (viii) is written on Borrower’s standard form of lease approved by Lender. All
proposed Leases which do not satisfy the requirements set forth in this subsection shall be subject
to the prior approval of Lender and its counsel (which approval shall not be unreasonably withheld,
conditioned or delayed), at Borrower’s expense. Borrower shall promptly deliver to Lender copies
of all Leases which are entered into pursuant to this subsection together with Borrower’s
certification that it has satisfied all of the conditions of this Section.

     (b) Borrower (i) shall observe and perform all the obligations imposed upon the landlord under
the Leases and shall not do or permit to be done anything to impair the value of any of the Leases
as security for the Debt; (ii) shall promptly send copies to Lender of all notices of default which
Borrower shall send or receive thereunder; (iii) shall enforce all of the material terms, covenants
and conditions contained in the Leases upon the part of the tenant thereunder to be observed or
performed; (iv) shall not collect any of the Rents more than one (1) month in advance (except
security deposits shall not be deemed Rents collected in advance); (v) shall not execute any other
assignment of the landlord’s interest in any of the Leases or the Rents; and (vi) shall not consent
to any assignment of or subletting under any Leases not in accordance with their terms, without the
prior written consent of Lender.

     (c) Borrower may, without the prior written consent of Lender, amend, modify or waive the
provisions of any Lease or terminate, reduce Rents under, accept a surrender of space under, or
shorten the term of, any Lease (including any guaranty, letter of credit or other credit support
with respect thereto) provided that such action (taking into account, in the case of a termination,
reduction in rent, surrender of space or shortening of term, the planned alternative use of the
affected space) does not have a materially adverse effect on the value of the Property taken as a
whole, and provided that such Lease, as amended, modified or waived, is otherwise in compliance
with the requirements of this Agreement and any subordination agreement binding upon Lender with
respect to such Lease. A termination of a Lease with a tenant who is in default beyond applicable
notice and grace periods shall not be considered an action which has a materially adverse effect on
the value of the Property taken as a whole. Any amendment, modification, waiver, termination, rent
reduction, space surrender or term shortening which does not satisfy the requirements set forth in
this subsection shall be subject to the prior approval of Lender and its counsel (in each case not
to be unreasonably withheld, conditioned or delayed), at Borrower’s expense. Borrower shall
promptly deliver to Lender copies of amendments, modifications and waivers which are entered into
pursuant to this subsection together with Borrower’s certification that it has satisfied all of the
conditions of this subsection.

     (d) Notwithstanding anything contained herein to the contrary, Borrower shall not, without the
prior written consent of Lender, enter into, renew, extend, amend, modify, waive any provisions of,
terminate, reduce Rents under, accept a surrender of space under, or shorten the term of any Major
Lease.

     (e) Notwithstanding anything contained herein to the contrary, Borrower shall not, without the
prior written consent of Lender, enter into, renew, extend, amend, modify, waive any provisions of,
terminate, reduce Rents under, accept a surrender of space under, or shorten the term of any Lease
during a Cash Management Period.

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     Section 5.14 Property Management

     (a) Borrower shall (i) promptly perform and observe all of the covenants required to be
performed and observed by it under the Management Agreement and do all things necessary to preserve
and to keep unimpaired its material rights thereunder; (ii) promptly notify Lender of any default
under the Management Agreement of which it is aware; (iii) promptly deliver to Lender a copy of any
notice of default or other material notice received by Borrower under the Management Agreement;
(iv) promptly give notice to Lender of any notice or information that Borrower receives which
indicates that Manager is terminating the Management Agreement or that Manager is otherwise
discontinuing its management of the Property; and (v) promptly enforce the performance and
observance of all of the covenants required to be performed and observed by Manager under the
Management Agreement.

     (b) If at any time, (i) Manager shall become insolvent or a debtor in a bankruptcy proceeding;
(ii) an Event of Default has occurred and is continuing; or (iii) a default has occurred and is
continuing under the Management Agreement, Borrower shall, at the request of Lender terminate the
Management Agreement upon thirty (30) days prior notice to Manager and replace Manager with a
manager approved by Lender on terms and conditions satisfactory to Lender, it being understood and
agreed that the management fee for such replacement manager shall not exceed then prevailing market
rates.

     (c) In addition to the foregoing, in the event that Lender, in Lender’s reasonable discretion,
at any time prior to the termination of the Assignment of Management Agreement, determines that the
Property is not being managed in accordance with generally accepted management practices for
projects similarly situated, Lender may deliver written notice thereof to Borrower and Manager,
which notice shall specify with particularity the grounds for Lender’s determination. If Lender
reasonably determines that the conditions specified in Lender’s notice are not remedied to Lender’s
reasonable satisfaction by Borrower or Manager within thirty (30) days from the date of such notice
or that Borrower or Manager have failed to diligently undertake correcting such conditions within
such thirty (30) day period, Lender may direct Borrower to terminate the Management Agreement and
to replace Manager with a manager approved by Lender on terms and conditions satisfactory to
Lender, it being understood and agreed that the management fee for such replacement manager shall
not exceed then prevailing market rates.

     (d) Borrower shall not, without the prior written consent of Lender (which consent shall not
be unreasonably withheld, conditioned or delayed): (i) surrender, terminate or cancel the
Management Agreement or otherwise replace Manager or enter into any other management agreement with
respect to the Property; (ii) reduce or consent to the reduction of the term of the Management
Agreement; (iii) increase or consent to the increase of the amount of any charges under the
Management Agreement; or (iv) otherwise modify, change, supplement, alter or amend, or waive or
release any of its rights and remedies under, the Management Agreement in any material respect.

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     Section 5.15 Liens

     Borrower shall not, without the prior written consent of Lender, create, incur, assume or
suffer to exist any Lien on any portion of the Property or permit any such action to be taken,
except Permitted Encumbrances.

     Section 5.16 Debt Cancellation

     Borrower shall not cancel or otherwise forgive or release any claim or debt (other than
termination of Leases in accordance herewith) owed to Borrower by any Person, except for adequate
consideration and in the ordinary course of Borrower’s business.

     Section 5.17 Zoning

     Borrower shall not initiate or consent to any zoning reclassification of any portion of the
Property or seek any variance under any existing zoning ordinance or use or permit the use of any
portion of the Property in any manner that could result in such use becoming a non-conforming use
under any zoning ordinance or any other applicable land use law, rule or regulation, without the
prior consent of Lender.

     Section 5.18 ERISA

     (a) Borrower shall not engage in any transaction which would cause any obligation, or action
taken or to be taken, hereunder (or the exercise by Lender of any of its rights under the Note,
this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or administrative
class exemption) prohibited transaction under ERISA.

     (b) Borrower further covenants and agrees to deliver to Lender such certifications or other
evidence from time to time throughout the term of the Loan, as requested by Lender in its sole
discretion, that (i) Borrower is not and does not maintain an “employee benefit plan” as defined in
Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the
meaning of Section 3(3) of ERISA; (ii) Borrower is not subject to state statutes regulating
investments and fiduciary obligations with respect to governmental plans; and (iii) one or more of
the following circumstances is true:

      (A) Equity interests in Borrower are publicly offered securities, within the
meaning of 29 C.F.R. §2510.3-101(b)(2);

      (B) Less than twenty-five percent (25%) of each outstanding class of equity
interests in Borrower are held by “benefit plan investors” within the meaning of 29
C.F.R. §2510.3-101(f)(2); or

      (C) Borrower qualifies as an “operating company” or a “real estate operating
company” within the meaning of 29 C.F.R. §2510.3-101(c) or (e).

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     Section 5.19 No Joint Assessment

     Borrower shall not suffer, permit or initiate the joint assessment of the Property with (a)
any other real property constituting a tax lot separate from the Property, or (b) any portion of
the Property which may be deemed to constitute personal property, or any other procedure whereby
the Lien of any taxes which may be levied against such personal property shall be assessed or
levied or charged to the Property.

     Section 5.20 Reciprocal Easement Agreements

     Borrower shall not enter into, terminate or modify any REA without Lender’s prior written
consent, which consent shall not be unreasonably withheld, conditioned or delayed. Borrower shall
enforce, comply with, and cause each of the parties to the REA to comply with all of the material
economic terms and conditions contained in the REA.

     Section 5.21 Alterations

     Lender’s prior approval shall be required in connection with any alterations to any
Improvements, exclusive of alterations to tenant spaces required under any Lease, (a) that may have
a material adverse effect on the Property, (b) that are structural in nature or (c) that, together
with any other alterations undertaken at the same time (including any related alterations,
improvements or replacements), are reasonably anticipated to have a cost in excess of the
Alteration Threshold. If the total unpaid amounts incurred and to be incurred with respect to such
alterations to the Improvements shall at any time exceed the Alteration Threshold, Borrower shall
promptly deliver to Lender as security for the payment of such amounts and as additional security
for Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii) direct
non-callable obligations of the United States of America or other obligations which are “government
securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, to the
extent acceptable to the applicable Rating Agencies, (iii) other securities acceptable to Lender
and the Rating Agencies, or (iv) a completion bond, provided that such completion bond is
acceptable to the Lender and the Rating Agencies. Such security shall be in an amount equal to the
excess of the total unpaid amounts incurred and to be incurred with respect to such alterations to
the Improvements over the Alteration Threshold.

     Section 5.22 Fire Extinguisher Inspection

     Borrower shall provide to Lender within sixty (60) calendar days of the Closing Date evidence
that the Little Arch Tenant has obtained inspection of its fire extinguishers on the Little Arch
Property and that the fire extinguishers passed inspection.

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ARTICLE 6

ENTITY COVENANTS

     Section 6.1 Single Purpose Entity/Separateness 

     Until the Debt has been paid in full, Borrower represents, warrants and covenants as follows:

     (a) Borrower has not and will not:

      (i) engage in any business or activity other than the ownership, operation and
maintenance of the Property, and activities incidental thereto;

      (ii) acquire or own any assets other than (A) the Property, and (B) such incidental
Personal Property as may be necessary for the operation of the Property;

      (iii) merge into or consolidate with any Person, or dissolve, terminate, liquidate in
whole or in part, transfer or otherwise dispose of all or substantially all of its assets or
change its legal structure;

      (iv) fail to observe all organizational formalities, or fail to preserve its existence
as an entity duly organized, validly existing and in good standing (if applicable) under the
applicable Legal Requirements of the jurisdiction of its organization or formation, or
amend, modify, terminate or fail to comply with the provisions of its organizational
documents;

      (v) own any subsidiary, or make any investment in, any Person;

      (vi) commingle its assets with the assets of any other Person, or permit any Affiliate
or constituent party independent access to its bank accounts;

      (vii) incur any debt, secured or unsecured, direct or contingent (including
guaranteeing any obligation), other than (A) the Debt, (B) trade and operational
indebtedness incurred in the ordinary course of business with trade creditors, provided such
indebtedness is (1) unsecured, (2) not evidenced by a note, (3) on commercially reasonable
terms and conditions, and (4) due not more than sixty (60) days past the date incurred and
paid on or prior to such date, and/or (C) financing leases and purchase money indebtedness
incurred in the ordinary course of business relating to Personal Property on commercially
reasonable terms and conditions; provided however, the aggregate amount of the indebtedness
described in (B) and (C) shall not exceed at any time three percent (3%) of the outstanding
principal amount of the Note;

      (viii) fail to maintain its records, books of account, bank accounts, financial
statements, accounting records and other entity documents separate and apart from those of
any other Person; except that Borrower’s financial position, assets, liabilities, net

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worth and operating results may be included in the consolidated financial statements of
an Affiliate, provided that such consolidated financial statements contain a footnote
indicating that Borrower is a separate legal entity and that it maintains separate books and
records;

      (ix) enter into any contract or agreement with any general partner, member,
shareholder, principal, guarantor of the obligations of Borrower, or any Affiliate of the
foregoing, except upon terms and conditions that are intrinsically fair, commercially
reasonable and substantially similar to those that would be available on an arm’s-length
basis with unaffiliated third parties;

      (x) maintain its assets in such a manner that it will be costly or difficult to
segregate, ascertain or identify its individual assets from those of any other Person;

      (xi) assume or guaranty the debts of any other Person, hold itself out to be
responsible for the debts of any other Person, or otherwise pledge its assets for the
benefit of any other Person or hold out its credit as being available to satisfy the
obligations of any other Person;

      (xii) make any loans or advances to any Person;

      (xiii) fail to file its own tax returns or files a consolidated federal income tax
return with any Person (unless prohibited or required, as the case may be, by applicable
Legal Requirements);

      (xiv) fail either to hold itself out to the public as a legal entity separate and
distinct from any other Person or to conduct its business solely in its own name or fail to
correct any known misunderstanding regarding its separate identity;

      (xv) fail to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated
business operations;

      (xvi) if it is a partnership or limited liability company, without the unanimous
written consent of all of its partners or members, as applicable, and the written consent of
100% of the managers of Borrower, (a) file or consent to the filing of any petition, either
voluntary or involuntary, to take advantage of any Creditors Rights Laws, (b) seek or
consent to the appointment of a receiver, liquidator or any similar official, (c) take any
action that might cause such entity to become insolvent, or (d) make an assignment for the
benefit of creditors;

      (xvii) fail to allocate shared expenses (including, without limitation, shared office
space and services performed by an employee of an Affiliate) among the Persons sharing such
expenses and to use separate stationery, invoices and checks;

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      (xviii) fail to remain solvent or pay its own liabilities (including, without
limitation, salaries of its own employees) only from its own funds, provided that there are
sufficient funds from the operation of the Property to do so;

      (xix) acquire obligations or securities of its partners, members, shareholders or other
affiliates, as applicable;

      (xx) violate or cause to be violated the assumptions made with respect to Borrower and
its principals in any opinion letter pertaining to substantive consolidation delivered to
Lender in connection with the Loan; or

      (xxi) fail to maintain a sufficient number of employees in light of its contemplated
business operations.

     (b) If Borrower is a limited partnership or limited liability company (other than a
single-member Delaware limited liability company satisfying the requirements of Section 6.1(c)
below), each general partner in the case of a limited partnership, or the managing member in the
case of a limited liability company (each an “SPE Component Entity”) of Borrower, as applicable,
shall be a corporation whose sole asset is its interest in Borrower. Each SPE Component Entity (i)
will at all times comply with each of the covenants, terms and provisions contained in Section
6.1(a)(iii) — (vi) and (viii) — (xxi), as if such representation, warranty or covenant was made
directly by such SPE Component Entity; (ii) will not engage in any business or activity other than
owning an interest in Borrower; (iii) will not acquire or own any assets other than its
partnership, membership, or other equity interest in Borrower; (iv) will not incur any debt,
secured or unsecured, direct or contingent (including guaranteeing any obligation); and (v) will
cause Borrower to comply with the provisions of this Section 6.1. Prior to the withdrawal or the
disassociation of any SPE Component Entity from Borrower, Borrower shall immediately appoint a new
general partner or managing member whose articles of incorporation are substantially similar to
those of such SPE Component Entity and, if an opinion letter pertaining to substantive
consolidation was required at closing, deliver a new opinion letter acceptable to Lender and the
Rating Agencies with respect to the new SPE Component Entity and its equity owners.
Notwithstanding the foregoing, to the extent Borrower is a single member Delaware limited liability
company, so long as Borrower maintains such formation status, no SPE Component Entity shall be
required and the following subsection (c) shall apply.

     (c) In the event Borrower is a single-member Delaware limited liability company, the limited
liability company agreement of Borrower (the “LLC Agreement”) shall provide that (i) upon the
occurrence of any event that causes the sole member of Borrower (“Member”) to cease to be the
member of Borrower (other than (A) upon an assignment by Member of all of its limited liability
company interest in Borrower and the admission of the transferee, or (B) the resignation of Member
and the admission of an additional member, in either case in accordance with the terms of the Loan
Documents and the LLC Agreement), the person executing the LLC Agreement as a “Special Member” (as
such term is defined in the LLC Agreement) (“Special Member”) shall, without any action of any
other Person and simultaneously with the Member ceasing to be the member of Borrower, automatically
be admitted to Borrower and shall continue Borrower without dissolution and (ii) Special Member may
not resign from Borrower or transfer

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its rights as Special Member unless a successor Special Member has been admitted to Borrower
as Special Member in accordance with requirements of Delaware law. The LLC Agreement shall further
provide that (i) Special Member shall automatically cease to be a member of Borrower upon the
admission to Borrower of a substitute Member, (ii) Special Member shall be a member of Borrower
that has no interest in the profits, losses and capital of Borrower and has no right to receive any
distributions of Borrower assets, (iii) pursuant to Section 18-301 of the Delaware Limited
Liability Company Act (the “Act”), Special Member shall not be required to make any capital
contributions to Borrower and shall not receive a limited liability company interest in Borrower,
(iv) Special Member, in its capacity as Special Member, may not bind Borrower, and (v) except as
required by any mandatory provision of the Act, Special Member, in its capacity as Special Member,
shall have no right to vote on, approve or otherwise consent to any action by, or matter relating
to, Borrower, including, without limitation, the merger, consolidation or conversion of Borrower.
In order to implement the admission to Borrower of Special Member, Special Member shall execute a
counterpart to the LLC Agreement. Prior to its admission to Borrower as Special Member, Special
Member shall not be a member of Borrower.

     (d) Upon the occurrence of any event that causes the Member to cease to be a member of
Borrower, to the fullest extent permitted by law, the personal representative of Member shall,
within ninety (90) days after the occurrence of the event that terminated the continued membership
of Member in Borrower, agree in writing (i) to continue Borrower and (ii) to the admission of the
personal representative or its nominee or designee, as the case may be, as a substitute member of
Borrower, effective as of the occurrence of the event that terminated the continued membership of
Member of Borrower in Borrower. Any action initiated by or brought against Member or Special
Member under any Creditors Rights Laws shall not cause Member or Special Member to cease to be a
member of Borrower and upon the occurrence of such an event, the business of Borrower shall
continue without dissolution. The LLC Agreement shall provided that each of Member and Special
Member waives any right it might have to agree in writing to dissolve Borrower upon the occurrence
of any action initiated by or brought against Member or Special Member under any Creditors Rights
Laws, or the occurrence of an event that causes Member or Special Member to cease to be a member of
Borrower.

     Section 6.2 Change of Name, Identity or Structure

     Borrower shall not change or permit to be changed (a) Borrower’s name, (b) Borrower’s identity
(including its trade name or names), (c) Borrower’s principal place of business set forth on the
first page of this Agreement, (d) the corporate, partnership or other organizational structure of
Borrower, each SPE Component Entity (if any), or Borrower Principal, (e) Borrower’s state of
organization, or (f) Borrower’s organizational identification number, without in each case
notifying Lender of such change in writing at least thirty (30) days prior to the effective date of
such change and, in the case of a change in Borrower’s structure, without first obtaining the prior
written consent of Lender. In addition, Borrower shall not change or permit to be changed any
organizational documents of Borrower or any SPE Component Entity (if any) if such change would
adversely impact the covenants set forth in Section 6.1 hereof. Borrower authorizes Lender to file
any financing statement or financing statement amendment required by Lender to establish or
maintain the validity, perfection and priority of the security interest granted herein. At the
request of Lender, Borrower shall execute a certificate in form

40

 

satisfactory to Lender listing the trade names under which Borrower intends to operate the
Property, and representing and warranting that Borrower does business under no other trade name
with respect to the Property. If Borrower does not now have an organizational identification
number and later obtains one, or if the organizational identification number assigned to Borrower
subsequently changes, Borrower shall promptly notify Lender of such organizational identification
number or change.

     Section 6.3 Business and Operations

     Borrower will qualify to do business and will remain in good standing under the laws of the
State as and to the extent the same are required for the ownership, maintenance, management and
operation of the Property.

ARTICLE 7

NO SALE OR ENCUMBRANCE

     Section 7.1 Transfer Definitions

     For purposes of this Article 7 an “Affiliated Manager” shall mean any managing agent in which
Borrower, Borrower Principal, any SPE Component Entity (if any) or any affiliate of such entities
has, directly or indirectly, any legal, beneficial or economic interest; “Control” shall mean the
power to direct the management and policies of a Restricted Party, directly or indirectly, whether
through the ownership of voting securities or other beneficial interests, by contract or otherwise;
“Restricted Party” shall mean Borrower, any Borrower Principal other than Gladstone Commercial
Corporation or Gladstone Commercial Limited Partnership, any SPE Component Entity (if any), any
Affiliated Manager, or any shareholder, partner, member or non-member manager, or any direct or
indirect legal or beneficial owner of Borrower, any Borrower Principal other than Gladstone
Commercial Corporation or Gladstone Commercial Limited Partnership, any SPE Component Entity (if
any), any Affiliated Manager or any non-member manager; and a “Sale or Pledge” shall mean a
voluntary or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, pledge,
assignment, grant of any options with respect to, or any other transfer or disposition of (directly
or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not
for consideration or of record) of a legal or beneficial interest.

     Section 7.2 No Sale/Encumbrance

     (a) Borrower shall not cause or permit a Sale or Pledge of the Property or any part thereof or
any legal or beneficial interest therein nor permit a Sale or Pledge of an interest in any
Restricted Party (in each case, a “Prohibited Transfer”), other than pursuant to Leases of space in
the Improvements to Tenants in accordance with the provisions of Section 5.13, without the prior
written consent of Lender.

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     (b) A Prohibited Transfer shall include, but not be limited to, (i) an installment sales
agreement wherein Borrower agrees to sell the Property or any part thereof for a price to be paid
in installments; (ii) an agreement by Borrower leasing all or a substantial part of the Property
for other than actual occupancy by a space tenant thereunder or a sale, assignment or other
transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to
any Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger, consolidation or
Sale or Pledge of such corporation’s stock or the creation or issuance of new stock in one or a
series of transactions; (iv) if a Restricted Party is a limited or general partnership or joint
venture, any merger or consolidation or the change, removal, resignation or addition of a general
partner or the Sale or Pledge of the partnership interest of any general or limited partner or any
profits or proceeds relating to such partnership interests or the creation or issuance of new
partnership interests; (v) if a Restricted Party is a limited liability company, any merger or
consolidation or the change, removal, resignation or addition of a managing member or non-member
manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of
any member or any profits or proceeds relating to such membership interest; (vi) if a Restricted
Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or
beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial
interests; or (vii) the removal or the resignation of Manager (including, without limitation, an
Affiliated Manager) other than in accordance with Section 5.14.

     Section 7.3 Permitted Transfers

     Notwithstanding the provisions of Section 7.2, the following transfers shall not be deemed to
be a Prohibited Transfer: (a) a transfer by devise or descent or by operation of law upon the
death of a member, partner or shareholder of a Restricted Party; so long as Borrower delivers
notice to Lender as soon as practicable thereafter and that such Restricted Party is promptly
reconstituted, if applicable, following the death of such member, partner or shareholder and there
is no change in Control of such Restricted Party as a result of such transfer; (b) transfers for
estate planning purposes of an individual’s interests in any Restricted Party to the spouse or any
lineal descendant of such individual, or to a trust for the benefit of any one or more of such
individual, spouse or lineal descendant, so long as such Restricted Party is reconstituted, if
required, following such transfer and there is no change in Control of such Restricted Party as a
result of such transfer; or (c) the Sale or Pledge, in one or a series of transactions, of not more
than forty-nine percent (49%) of the stock, limited partnership interests or non-managing
membership interests (as the case may be) in a Restricted Party; provided, however, no such
transfers shall result in a change in Control in the Restricted Party or change in control of the
Property, and as a condition to each such transfer, Lender shall receive not less than thirty (30)
days prior written notice of such proposed transfer; Notwithstanding anything to the contrary
contained in this Section 7.3, Gladstone Commercial Limited Partnership (or its successor by merger
or consolidation) shall continue to own, directly or indirectly, at least a 51% ownership in and
control Borrower.

     Section 7.4 Lender’s Rights

     Lender reserves the right to condition the consent to a Prohibited Transfer requested
hereunder upon (a) a modification of the terms hereof and an assumption of the Note and the

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other Loan Documents as so modified by the proposed Prohibited Transfer, (b) receipt of
payment of a transfer fee equal to one percent (1%) of the outstanding principal balance of the
Loan and all of Lender’s expenses incurred in connection with such Prohibited Transfer, (c) receipt
of written confirmation from the Rating Agencies that the Prohibited Transfer will not result in a
downgrade, withdrawal or qualification of the initial, or if higher, then current ratings issued in
connection with a Securitization, or if a Securitization has not occurred, any ratings to be
assigned in connection with a Securitization, (d) the proposed transferee’s continued compliance
with the covenants set forth in this Agreement (including, without limitation, the covenants in
Article 6) and the other Loan Documents, (e) a new manager for the Property and a new management
agreement satisfactory to Lender, and (f) the satisfaction of such other conditions and/or legal
opinions as Lender shall determine in its sole discretion to be in the interest of Lender. All
expenses incurred by Lender shall be payable by Borrower whether or not Lender consents to the
Prohibited Transfer. Lender shall not be required to demonstrate any actual impairment of its
security or any increased risk of default hereunder in order to declare the Debt immediately due
and payable upon a Prohibited Transfer made without Lender’s consent. This provision shall apply to
each and every Prohibited Transfer, whether or not Lender has consented to any previous Prohibited
Transfer. In the event an opinion letter pertaining to substantive consolidation was delivered to
Lender and the Rating Agencies in connection with the closing of the Loan, and if any Sale or
Pledge permitted under this Article 7 results in any Person and its Affiliates owning in excess of
forty-nine percent (49%) of the ownership interests in a Restricted Party, Borrower shall, prior to
such transfer, and in addition to any other requirement for Lender consent contained herein,
deliver a revised opinion letter pertaining to substantive consolidation to Lender reflecting such
Prohibited Transfer, which opinion shall be in form, scope and substance acceptable in all respects
to Lender and the Rating Agencies.

     Section 7.5 Assumption

     Notwithstanding the foregoing provisions of this Article 7, following the date which is six
(6) months from the Closing Date, Lender shall not unreasonably withhold consent to a transfer of
the Property in its entirety to, and the related assumption of the Loan by, any Person (a
“Transferee”) provided that each of the following terms and conditions are satisfied:

     (a) no Default or Event of Default has occurred;

     (b) Borrower shall have (i) delivered written notice to Lender of the terms of such
prospective transfer not less than sixty (60) days before the date on which such transfer is
scheduled to close and, concurrently therewith, all such information concerning the proposed
Transferee as Lender shall reasonably require and (ii) paid to Lender a non-refundable processing
fee in the amount of $10,000. Lender shall have the right to approve or disapprove the proposed
transfer based on its then current underwriting and credit requirements for similar loans secured
by similar properties which loans are sold in the secondary market, such approval not to be
unreasonably withheld. In determining whether to give or withhold its approval of the proposed
transfer, Lender shall consider the experience and track record of Transferee and its principals in
owning and operating facilities similar to the Property, the financial strength of Transferee and
its principals, the general business standing of Transferee and its principals and Transferee’s and
its principals’ relationships and experience with contractors, vendors, tenants,

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lenders and other business entities; provided, however, that, notwithstanding Lender’s
agreement to consider the foregoing factors in determining whether to give or withhold such
approval, such approval shall be given or withheld based on what Lender determines to be
commercially reasonable and, if given, may be given subject to such conditions as Lender may deem
reasonably appropriate;

     (c) Borrower shall have paid to Lender, concurrently with the closing of such transfer, (i) a
non-refundable assumption fee in an amount equal to one percent (1.0%) of the then outstanding
principal balance of the Note, and (ii) all out-of-pocket costs and expenses, including reasonable
attorneys’ fees, incurred by Lender in connection with the transfer;

     (d) (i) Transferee shall have assumed and agreed to pay the Debt as and when due subject to
the provisions of Article 15 hereof and, prior to or concurrently with the closing of such
transfer, Transferee and its constituent partners, members or shareholders as Lender may require,
shall have executed, without any cost or expense to Lender, such documents and agreements as Lender
shall reasonably require to evidence and effectuate said assumption and (ii) if required by Lender,
a Person affiliated with Transferee and acceptable to Lender shall have assumed the obligations of
Borrower Principal under the Loan Documents with respect to all acts and events occurring or
arising after the transfer of the Property pursuant to this Section 7.5;

     (e) Borrower and Transferee, without any cost to Lender, shall furnish any information
requested by Lender for the preparation of, and shall authorize Lender to file, new financing
statements and financing statement amendments and other documents to the fullest extent permitted
by applicable law, and shall execute any additional documents reasonably requested by Lender;

     (f) Borrower shall have delivered to Lender, without any cost or expense to Lender, such
endorsements to Lender’s Title Insurance Policy insuring that fee simple or leasehold title to the
Property, as applicable, is vested in Transferee (subject to Permitted Encumbrances), hazard
insurance endorsements or certificates and other similar materials as Lender may deem necessary at
the time of the transfer, all in form and substance satisfactory to Lender;

     (g) Transferee shall have furnished to Lender, if Transferee is a corporation, partnership,
limited liability company or other entity, all appropriate papers evidencing Transferee’s
organization and good standing, and the qualification of the signers to execute the assumption of
the Debt, which papers shall include certified copies of all documents relating to the organization
and formation of Transferee and of the entities, if any, which are partners or members of
Transferee. Transferee and such constituent partners, members or shareholders of Transferee (as
the case may be), as Lender shall require, shall comply with the covenants set forth in Article 6
hereof;

     (h) Transferee shall assume the obligations of Borrower under any Management Agreement or
provide a new management agreement with a new manager which meets with the requirements of Section
5.14 hereof and assign to Lender as additional security such new management agreement;

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     (i) Transferee shall furnish an opinion of counsel reasonably satisfactory to Lender and its
counsel (A) that Transferee’s formation documents provide for the matters described in subparagraph
(g) above, (B) that the assumption of the Debt has been duly authorized, executed and delivered,
and that the Note, the Mortgage, this Agreement, the assumption agreement and the other Loan
Documents are valid, binding and enforceable against Transferee in accordance with their terms, (C)
that Transferee and any entity which is a controlling stockholder, member or general partner of
Transferee, have been duly organized, and are in existence and good standing, and (E) with respect
to such other matters as Lender may reasonably request;

     (j) if required by Lender, Lender shall have received confirmation in writing from the Rating
Agencies that rate the Securities to the effect that the transfer will not result in a
qualification, downgrade or withdrawal of any rating initially assigned or to be assigned to the
Securities;

     (k) Borrower’s obligations under the contract of sale pursuant to which the transfer is
proposed to occur shall expressly be subject to the satisfaction of the terms and conditions of
this Section 7.5; and

     (l) in the event a substantive non-consolidation opinion was required in connection with the
closing of the Loan, Transferee shall, prior to such transfer, deliver a substantive
non-consolidation opinion to Lender, which opinion shall be in form, scope and substance acceptable
in all respects to Lender and the Rating Agencies.

     In connection with and as a condition precedent to Lender’s approval of any assumption and
transfer of the Property, except to the extent the new Borrower Principal in connection with any
such assumption has a net worth and liquidity equal to or better than the net worth and liquidity
of Gladstone Commercial Corporation as of the Closing Date, Lender reserves the right to require
any Transferee to post all cash deposits or letters of credit required or which, upon the
occurrence of certain events or conditions, could subsequently be required or which are otherwise
contemplated by the terms of any provision of this Agreement, irrespective of whether such events
or conditions have occurred such that the then current Borrower would be required to post such
deposits or letters of credit. Without limiting the foregoing, all letters of credit shall satisfy
the Letter of Credit Requirements.

     A consent by Lender with respect to a transfer of the Property in its entirety to, and the
related assumption of the Loan by, a Transferee pursuant to this Section 7.5 shall not be construed
to be a waiver of the right of Lender to consent to any subsequent Sale or Pledge of the Property.
Upon the transfer of the Property pursuant to this Section 7.5, Borrower and Borrower Principal
shall be relieved of all liability under the Loan Documents for acts, events, conditions, or
circumstances occurring or arising after the date of such transfer, except to the extent that such
acts, events, conditions, or circumstances are the proximate result of acts, events, conditions, or
circumstances that existed prior to the date of such transfer, whether or not discovered prior or
subsequent to the date of such transfer.

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ARTICLE 8

INSURANCE; CASUALTY; CONDEMNATION; RESTORATION

     Section 8.1 Insurance

     (a) Borrower shall obtain and maintain, or cause to be maintained, at all times insurance for
Borrower and the Property providing at least the following coverages:

      (i) comprehensive “special causes of loss” form of insurance (or its equivalent) on the
Improvements and the Personal Property (A) in an amount equal to not less than one hundred
percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall
mean actual replacement value (exclusive of costs of excavations, foundations, underground
utilities and footings); (B) written on a replacement cost basis and containing either an
agreed amount endorsement with respect to the Improvements and Personal Property or a waiver
of all co-insurance provisions; (C) providing for no deductible in excess of $25,000 with
respect to the Little Arch Property and $100,000 with respect to the AFL Property for all
such insurance coverage; (D) at all times insuring against at least those hazards that are
commonly insured against under a “special causes of loss” form of policy, as the same shall
exist on the date hereof, and together with any increase in the scope of coverage provided
under such form after the date hereof; and (E) if any of the Improvements or the use of the
Property shall at any time constitute legal non-conforming structures or uses, providing
coverage for contingent liability from Operation of Building Laws, Demolition Costs and
Increased Cost of Construction Endorsements and containing an “Ordinance or Law Coverage” or
“Enforcement” endorsement. In addition, Borrower shall obtain: (y) if any portion of the
Improvements is currently or at any time in the future located in a “special flood hazard
area” designated by the Federal Emergency Management Agency, flood hazard insurance in an
amount equal to the maximum amount of such insurance available under the National Flood
Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood
Insurance Reform Act of 1994, as each may be amended; and (z) earthquake insurance in
amounts and in form and substance reasonably satisfactory to Lender in the event the
Property is located in an area with a high degree of seismic risk, provided that the
insurance pursuant to clauses (y) and (z) hereof shall be on terms consistent with the
special causes of loss form required under this subsection (i);

      (ii) commercial general liability insurance against claims for personal injury, bodily
injury, death or property damage occurring upon, in or about the Property, with such
insurance (A) to be on the so-called “occurrence” form with a general aggregate limit of not
less than $2,000,000 and a per occurrence limit of not less than $1,000,000; (B) to continue
at not less than the aforesaid limit until required to be changed by Lender in writing by
reason of changed economic conditions making such protection inadequate; and (C) to cover at
least the following hazards: (1) premises and operations; (2) products and completed
operations; (3) independent contractors; and (4) contractual liability;

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      (iii) loss of rents insurance or business income insurance, as applicable, (A) with
loss payable to Lender; (B) covering all risks required to be covered by the insurance
provided for in subsection (i) above; and (C) which provides that after the physical loss to
the Improvements and Personal Property occurs, the loss of rents or income, as applicable,
will be insured until completion of Restoration, or the expiration of eighteen (18) months,
whichever first occurs, and notwithstanding that the policy may expire prior to the end of
such period; and (D) which contains an extended period of indemnity endorsement which
provides that after the physical loss to the Improvements and Personal Property has been
repaired, the continued loss of income will be insured until such income either returns to
the same level it was at prior to the loss, or the expiration of six (6) months from the
date that the Property is repaired or replaced and operations are resumed, whichever first
occurs, and notwithstanding that the policy may expire prior to the end of such period. For
hotels, motels, health care, and other property types without a standard rent roll, the
amount of business income insurance required shall be not less than twenty-four (24) months
of debt service, taxes, insurance, and other fixed expenses. The amount of such loss of
rents or business income insurance, as applicable, shall be determined prior to the date
hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the
gross income from the Property for the succeeding period of coverage as required above. All
proceeds payable to Lender pursuant to this subsection shall be held by Lender and shall be
applied to the obligations secured by the Loan Documents from time to time due and payable
hereunder and under the Note; provided, however, that nothing herein contained shall be
deemed to relieve Borrower of its obligations to pay the obligations secured by the Loan
Documents on the respective dates of payment provided for in the Note, this Agreement and
the other Loan Documents except to the extent such amounts are actually paid out of the
proceeds of such loss of rents or business income insurance, as applicable;

      (iv) at all times during which structural construction, repairs or alterations are
being made with respect to the Improvements, and only if the Property coverage form does not
otherwise apply, (A) owner’s contingent or protective liability insurance covering claims
not covered by or under the terms or provisions of the above mentioned commercial general
liability insurance policy; and (B) the insurance provided for in subsection (i) above
written in a so-called Builder’s Risk Completed Value form (1) on a non-reporting basis, (2)
against “special causes of loss” insured against pursuant to subsection (i) above, (3)
including permission to occupy the Property, and (4) with an agreed amount endorsement
waiving co-insurance provisions;

      (v) workers’ compensation, subject to the statutory limits of the State, and employer’s
liability insurance in respect of any work or operations on or about the Property, or in
connection with the Property or its operation (if applicable);

      (vi) comprehensive boiler and machinery insurance, if applicable, in amounts as shall
be reasonably required by Lender on terms consistent with the commercial property insurance
policy required under subsection (i) above;

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      (vii) excess liability insurance in an amount not less than $10,000,000 per occurrence
on terms consistent with the commercial general liability insurance required under
subsection (ii) above; and

      (viii) upon sixty (60) days’ written notice, such other reasonable insurance and in
such reasonable amounts as Lender from time to time may reasonably request against such
other insurable hazards which at the time are commonly insured against for property similar
to the Property located in or around the region in which the Property is located.

     (b) All insurance provided for in Section 8.1(a) shall be obtained under valid and enforceable
policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to
the approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds.
The Policies shall be issued by financially sound and responsible insurance companies authorized to
do business in the State and having a claims paying ability rating of “BBB” or better by S&P and
“Baa2” by Moody’s (or such other ratings promulgated from time to time by S&P and Moody’s for
properties and transactions similar in type and size to the Property and the Loan) and/or a general
policy rating of “A” or better and a financial class of VIII or better by A.M. Best Company, Inc.
The Policies described in Section 8.1(a) shall designate Lender and its successors and assigns as
additional insureds, mortgagees and/or loss payee as deemed appropriate by Lender. To the extent
such Policies are not available as of the Closing Date, Borrower shall deliver to Lender prior to
the Closing Date an Acord 28 or similar certificate of insurance evidencing the coverages and
amounts required hereunder and, upon request of Lender as soon as available after the Closing Date,
certified copies of all Policies. Not less than ten (10) days prior to the expiration dates of any
insurance coverage in place with respect to the Property, Borrower shall deliver to Lender an Acord
28 or similar certificate, accompanied by evidence satisfactory to Lender of payment of the
premiums due in connection therewith (the “Insurance Premiums”) and, as soon as available
thereafter, certified copies of all renewal Policies.

     (c) Any blanket insurance Policy shall specifically allocate to the Property the amount of
coverage from time to time required hereunder and shall otherwise provide the same protection as
would a separate Policy insuring only the Property in compliance with the provisions of Section
8.1(a).

     (d) All Policies provided for or contemplated by Section 8.1(a), except for the Policy
referenced in Section 8.1(a)(v), shall name Borrower as the insured and Lender as the additional
insured, as its interests may appear, and in the case of property damage, boiler and machinery,
flood and earthquake insurance, shall contain a so-called New York standard non-contributing
mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender.

     (e) All Policies provided for in Section 8.1(a) shall contain clauses or endorsements to the
effect that:

      (i) no act or negligence of Borrower, or anyone acting for Borrower, or of any Tenant
or other occupant, or failure to comply with the provisions of any Policy,

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which might otherwise result in a forfeiture of the insurance or any part thereof,
shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned;

      (ii) the Policies shall not be materially changed (other than to increase the coverage
provided thereby) or canceled by the insurer without at least thirty (30) days’ (ten (10)
days’ in the case of non-payment of premium) prior written notice to Lender and any other
party named therein as an additional insured;

      (iii) the issuers thereof shall give written notice to Lender if the Policies have not
been renewed thirty (30) days prior to its expiration;

      (iv) Lender shall not be liable for any Insurance Premiums thereon or subject to any
assessments thereunder; and

      (v) the Policies do not contain an exclusion for acts of terrorism or, solely with
respect to the AFL Property, certified acts of terrorism.

     (f) If at any time Lender is not in receipt of written evidence that all insurance required
hereunder is in full force and effect, Lender shall have the right, without notice to Borrower, to
take such action as Lender deems necessary to protect its interest in the Property, including,
without limitation, obtaining such insurance coverage as Lender in its sole discretion deems
appropriate. All premiums incurred by Lender in connection with such action or in obtaining such
insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid,
shall be secured by the Mortgage and shall bear interest at the Default Rate.

     Section 8.2 Casualty

     If the Property shall be damaged or destroyed, in whole or in part, by fire or other casualty
(a “Casualty”), Borrower shall give prompt notice of such damage to Lender and shall promptly
commence and diligently prosecute the Restoration of the Property in accordance with Section 8.4,
to the extent Net Proceeds are made available by Lender or if Borrower is required to do so
pursuant to the terms of any Lease. Borrower shall pay all costs of such Restoration whether or
not such costs are covered by insurance. Lender may, but shall not be obligated to make proof of
loss if not made promptly by Borrower. Borrower shall adjust all claims for Insurance Proceeds in
consultation with, and approval of, Lender; provided, however, if an Event of Default has occurred
and is continuing, Lender shall have the exclusive right to participate in the adjustment of all
claims for Insurance Proceeds.

     Section 8.3 Condemnation

     Borrower shall promptly give Lender notice of the actual or threatened commencement of any
proceeding for the Condemnation of the Property of which Borrower has knowledge and shall deliver
to Lender copies of any and all papers served in connection with such proceedings. Lender may
participate in any such proceedings, and Borrower shall from time to time deliver to

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Lender all instruments requested by it to permit such participation. Borrower shall, at its
expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such proceedings.
Notwithstanding any taking by any public or quasi-public authority through Condemnation or
otherwise (including but not limited to any transfer made in lieu of or in anticipation of the
exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner
provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until
any Award shall have been actually received and applied by Lender, after the deduction of expenses
of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the
interest paid on the Award by the condemning authority but shall be entitled to receive out of the
Award interest at the rate or rates provided herein or in the Note. If the Property or any portion
thereof is taken by a condemning authority, Borrower shall promptly commence and diligently
prosecute the Restoration of the Property and otherwise comply with the provisions of Section 8.4,
whether or not Lender makes any Net Proceeds available pursuant to Section 8.4. If the Property is
sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall
have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered
or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.

     Section 8.4 Restoration

     The following provisions shall apply in connection with the Restoration of the Property:

     (a) If the Net Proceeds shall be less than $50,000 and the costs of completing the Restoration
shall be less than $50,000, the Net Proceeds will be disbursed by Lender to Borrower upon receipt,
provided that all of the conditions set forth in Section 8.4(b)(i) are met and Borrower delivers to
Lender a written undertaking to expeditiously commence and to satisfactorily complete with due
diligence the Restoration in accordance with the terms of this Agreement.

     (b) If the Net Proceeds are equal to or greater than $50,000 or the costs of completing the
Restoration are equal to or greater than $50,000, Lender shall make the Net Proceeds available for
the Restoration in accordance with the provisions of this Section 8.4. The term “Net Proceeds” for
purposes of this Section 8.4 shall mean: (i) the net amount of all insurance proceeds received by
Lender pursuant to Section 8.1(a)(i), (iv), (vi) and (viii) as a result of a Casualty, after
deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel
fees), if any, in collecting the same (“Insurance Proceeds”), or (ii) the net amount of the Award
as a result of a Condemnation, after deduction of its reasonable costs and expenses (including, but
not limited to, reasonable counsel fees), if any, in collecting the same (“Condemnation Proceeds”),
whichever the case may be.

      (i) The Net Proceeds shall be made available to Borrower for Restoration provided that
each of the following conditions are met:

      (A) no Event of Default shall have occurred and be continuing;

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      (B) (1) in the event the Net Proceeds are Insurance Proceeds, less than thirty
percent (30%) of the total floor area of the Improvements on the Property has been
damaged, destroyed or rendered unusable as a result of a Casualty and the amount of
damage does not exceed thirty percent (30%) of the Property’s fair market value
immediately prior to the occurrence of such Casualty, or (2) in the event the Net
Proceeds are Condemnation Proceeds, less than fifteen percent (15%) of the land
constituting the Property is taken, such land is located along the perimeter or
periphery of the Property, and less than fifteen percent (15%) of the aggregate
floor area of the Improvements is taken and the taking does not exceed fifteen
percent (15%) of the Property’s fair market value immediately prior to the
occurrence of such taking;

      (C) Leases covering in the aggregate at least seventy-five percent (75%) of the
total rentable space in the Property which has been demised under executed and
delivered Leases in effect as of the date of the occurrence of such Casualty or
Condemnation, whichever the case may be, and each Major Lease in effect as of such
date shall remain in full force and effect during and after the completion of the
Restoration without abatement of rent beyond the time required for Restoration;

      (D) Borrower shall commence the Restoration as soon as reasonably practicable
(but in no event later than sixty (60) days after such Casualty or Condemnation,
whichever the case may be, occurs) and shall diligently pursue the same to
satisfactory completion;

      (E) Lender shall be satisfied that any operating deficits, including all
scheduled payments of principal and interest under the Note, which will be incurred
with respect to the Property as a result of the occurrence of any such Casualty or
Condemnation, whichever the case may be, will be covered out of the insurance
coverage referred to in Section 8.1(a)(iii) above;

      (F) Lender shall be satisfied that the Restoration will be completed on or
before the earliest to occur of (1) six (6) months prior to the Maturity Date, (2)
the earliest date required for such completion under the terms of any Leases or
material agreements affecting the Property, (3) such time as may be required under
applicable zoning law, ordinance, rule or regulation, or (4) the expiration of the
insurance coverage referred to in Section 8.1(a)(iii);

      (G) the Property and the use thereof after the Restoration will be in
compliance with and permitted under all Legal Requirements;

      (H) the Restoration shall be done and completed by Borrower in an expeditious
and diligent fashion and in compliance with all applicable Legal Requirements;

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      (I) such Casualty or Condemnation, as applicable, does not result in the loss
of access to the Property or the Improvements;

      (J) Borrower shall deliver, or cause to be delivered, to Lender a signed
detailed budget approved in writing by Borrower’s architect or engineer stating the
entire cost of completing the Restoration, which budget shall be reasonably
acceptable to Lender; and

      (K) the Net Proceeds together with any cash or cash equivalent deposited by
Borrower with Lender are sufficient in Lender’s reasonable judgment to cover the
cost of the Restoration.

      (ii) The Net Proceeds shall be held by Lender until disbursements commence, and, until
disbursed in accordance with the provisions of this Section 8.4(b), shall constitute
additional security for the Debt and other obligations under the Loan Documents. The Net
Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time
during the course of the Restoration, upon receipt of evidence satisfactory to Lender that
(A) all the conditions precedent to such advance, including those set forth in Section
8.4(b)(i), have been satisfied, (B) all materials installed and work and labor performed
(except to the extent that they are to be paid for out of the requested disbursement) in
connection with the related Restoration item have been paid for in full, and (C) there exist
no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of
intention to file same, or any other liens or encumbrances of any nature whatsoever on the
Property which have not either been fully bonded to the satisfaction of Lender and
discharged of record or in the alternative fully insured to the satisfaction of Lender by
the title company issuing the Title Insurance Policy. Notwithstanding the foregoing,
Insurance Proceeds from the Policies required to be maintained by Borrower pursuant to
Section 8.1(a)(iii) shall be controlled by Lender at all times, shall not be subject to the
provisions of this Section 8.4 and shall be used solely for the payment of the obligations
under the Loan Documents and Operating Expenses.

      (iii) All plans and specifications required in connection with the Restoration shall be
subject to prior review and acceptance in all respects by Lender and by an independent
consulting engineer selected by Lender (in each case, such acceptance not to be unreasonably
withheld, conditioned or delayed) (the “Restoration Consultant”). Lender shall have the use
of the plans and specifications and all permits, licenses and approvals required or obtained
in connection with the Restoration. The identity of the contractors, subcontractors and
materialmen engaged in the Restoration, as well as the contracts in excess of $50,000 under
which they have been engaged, shall be subject to prior review and acceptance by Lender and
the Restoration Consultant (in each case, such acceptance not to be unreasonably withheld,
conditioned or delayed). All costs and expenses incurred by Lender in connection with
making the Net Proceeds available for the Restoration, including, without limitation,
reasonable counsel fees and disbursements and the Restoration Consultant’s fees, shall be
paid by Borrower.

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      (iv) In no event shall Lender be obligated to make disbursements of the Net Proceeds in
excess of an amount equal to the costs actually incurred from time to time for work in place
as part of the Restoration, as certified by the Restoration Consultant, minus the
Restoration Retainage. The term “Restoration Retainage” shall mean an amount equal to ten
percent (10%) of the costs actually incurred for work in place as part of the Restoration,
as certified by the Restoration Consultant, until the Restoration has been completed. The
Restoration Retainage shall be reduced to five percent (5%) of the costs incurred upon
receipt by Lender of satisfactory evidence that fifty percent (50%) of the Restoration has
been completed. The Restoration Retainage shall in no event, and notwithstanding anything
to the contrary set forth above in this Section 8.4(b), be less than the amount actually
held back by Borrower from contractors, subcontractors and materialmen engaged in the
Restoration. The Restoration Retainage shall not be released until the Restoration
Consultant certifies to Lender that the Restoration has been completed in accordance with
the provisions of this Section 8.4(b) and that all approvals necessary for the re-occupancy
and use of the Property have been obtained from all appropriate Governmental Authorities,
and Lender receives evidence satisfactory to Lender that the costs of the Restoration have
been paid in full or will be paid in full out of the Restoration Retainage; provided,
however, that Lender will release the portion of the Restoration Retainage being held with
respect to any contractor, subcontractor or materialman engaged in the Restoration as of the
date upon which the Restoration Consultant certifies to Lender that the contractor,
subcontractor or materialman has satisfactorily completed all work and has supplied all
materials in accordance with the provisions of the contractor’s, subcontractor’s or
materialman’s contract, the contractor, subcontractor or materialman delivers the lien
waivers and evidence of payment in full of all sums due to the contractor, subcontractor or
materialman as may be reasonably requested by Lender or by the title company issuing the
Title Insurance Policy, and Lender receives an endorsement to the Title Insurance Policy
insuring the continued priority of the lien of the Mortgage and evidence of payment of any
premium payable for such endorsement. If required by Lender, the release of any such
portion of the Restoration Retainage shall be approved by the surety company, if any, which
has issued a payment or performance bond with respect to the contractor, subcontractor or
materialman.

      (v) Lender shall not be obligated to make disbursements of the Net Proceeds more
frequently than once every calendar month.

      (vi) If at any time the Net Proceeds or the undisbursed balance thereof shall not, in
the reasonable opinion of Lender in consultation with the Restoration Consultant, be
sufficient to pay in full the balance of the costs which are estimated by the Restoration
Consultant to be incurred in connection with the completion of the Restoration, Borrower
shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender before any further
disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with
Lender shall be held by Lender and shall be disbursed for costs actually incurred in
connection with the Restoration on the same conditions applicable to the disbursement of the
Net Proceeds, and until so disbursed pursuant to this 0 shall

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constitute additional security for the Debt and other obligations under the Loan Documents.

      (vii) The excess, if any, of the Net Proceeds and the remaining balance, if any, of the
Net Proceeds Deficiency deposited with Lender after the Restoration Consultant certifies to
Lender that the Restoration has been completed in accordance with the provisions of this
Section 8.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs
incurred in connection with the Restoration have been paid in full, shall be remitted by
Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing
under the Note, this Agreement or any of the other Loan Documents.

     (c) All Net Proceeds not required (i) to be made available for the Restoration or (ii) to be
returned to Borrower as excess Net Proceeds pursuant to Section 8.4(b)(vii) may (x) be retained and
applied by Lender toward the payment of the Debt whether or not then due and payable in such order,
priority and proportions as Lender in its sole discretion shall deem proper, or, (y) at the sole
discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such
purposes and upon such conditions as Lender shall designate. If, pursuant to this Section 8.4,
Lender shall receive and retain Net Proceeds, (i) the lien of the Mortgage shall be reduced only by
the amount thereof received and retained by Lender and actually applied by Lender in reduction of
the Debt; and (ii) notwithstanding any other provisions hereof, Borrower shall not be required to
repair or restore the portion of the Property affected by such Casualty or Condemnation to the
condition or character the Property was in immediately prior to such Casualty or Condemnation so
long as no Event of Default exists, but Borrower shall be required to remove all debris with
respect to the portion of the Property not required to be restored in a manner that is safe and is
not dangerous to health or other property and is in compliance with all applicable laws.

     (d) In the event of foreclosure of the Mortgage, or other transfer of title to the Property in
extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to
the Policies then in force concerning the Property and all proceeds payable thereunder shall
thereupon vest in the purchaser at such foreclosure, Lender or other transferee in the event of
such other transfer of title.

ARTICLE 9

RESERVE FUNDS

     Section 9.1 Required Repairs

     (a) Borrower shall make the repairs and improvements to the Property set forth on Schedule I
and as more particularly described in the Property Condition Report prepared in connection with the
closing of the Loan (such repairs hereinafter referred to as “Required Repairs”). Borrower shall
complete the Required Repairs in a good and workmanlike manner

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on or before the date that is twelve (12) months from the date hereof or within such other
time frame for completion specifically set forth on Schedule I.

     (b) Borrower shall establish on the date hereof an Eligible Account with Lender or Lender’s
agent to fund the Required Repairs (the “Required Repair Account”) into which Borrower shall
deposit on the date hereof the amount of $0.00. Amounts so deposited shall hereinafter be referred
to as the “Required Repair Funds.”

     Section 9.2 Replacements

     (a) On an ongoing basis throughout the term of the Loan, Borrower shall make capital repairs,
replacements and improvements necessary to keep the Property in good order and repair and in a good
marketable condition or prevent deterioration of the Property, including, but not limited to, those
repairs, replacements and improvements more particularly described in the Property Condition Report
prepared in connection with the closing of the Loan (collectively, the “Replacements”). Borrower
shall complete all Replacements in a good and workmanlike manner as soon as commercially reasonable
after commencing to make each such Replacement.

     (b) Borrower shall establish on the date hereof a sub-account of the Cash Management Account
with Lender or Lender’s agent to fund the Replacements (the “Replacement Reserve Account”) into
which Borrower shall deposit on the date hereof $400,000.00 or, in lieu of such deposit, a letter
of credit satisfying the Letter of Credit Requirements and is otherwise acceptable to Lender. In
addition, Borrower shall deposit $4,852.33 per month for the term of the Loan (the “Replacement
Reserve Monthly Deposit”) into the Replacement Reserve Account on each Scheduled Payment Date. In
addition to the Replacement Reserve Monthly Deposits, on or before the thirty-seventh
(37th) Scheduled Payment Date, Borrower shall provide the Lender with a letter of credit
from an acceptable lender in the amount of $400,000.00 that satisfies the Letter of Credit
Requirements and is otherwise reasonably acceptable to Lender. In the event the letter of credit
is not provided to Lender as and when required, the Lender shall, notwithstanding anything
contained in the Loan Documents to the contrary, retain and not release any funds from the Lockbox
Account, the Cash Management Account or any Reserve Account to the Borrower until the $400,000.00
has been collected. Lender reserves the right to require a future Borrower (if any) to post the
$400,000.00 in cash or in the form of a letter of credit satisfying the Letter of Credit
Requirements at the time of and as an additional requirement for the Loan assumption. Amounts so
deposited shall hereinafter be referred to as “Replacement Reserve Funds.” Lender may, in its
reasonable discretion, adjust the Replacement Reserve Monthly Deposit from time to time to an
amount sufficient to maintain the proper maintenance and operation of the Property. In the event
Lender shall at any time increase the Replacement Reserve Monthly Deposit, Borrower may, at its
election, request that Lender obtain, at the sole cost and expense of Borrower, a Property
Condition Report prepared by an engineer selected by Lender in its reasonable discretion, in which
case the Replacement Reserve Monthly Deposit shall be adjusted by Lender based on the results of
such report, provided that in no event shall such amounts be reduced below the initial amount of
the Replacement Reserve Monthly Deposit set forth in herein. If the Borrower fails to complete any
Replacement in a timely and proper manner or there is an Event of Default, the Lender may draw on
any letters of credit provided under this Section 9.2. Provided there is no

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Event of Default and Borrower has completed all required Replacements in accordance with the
terms of the Loan Documents, the Lender shall release any letter of credit provided by the Borrower
under this Section 9.2.

     Section 9.3 Tenant Improvements and Leasing Commissions

     (a) Borrower hereby agrees to (a) perform, or cause to be performed, tenant improvements
required under any Lease entered into in accordance with the provisions of Section 5.13 of this
Agreement (collectively, the “Tenant Improvements”), and (b) pay the costs of leasing commissions
incurred by Borrower in connection with the leasing of the Property or a portion thereof
(collectively, “Leasing Commissions”).

     (b) Borrower shall establish on the date hereof a sub-account of the Cash Management Account
with Lender or Lender’s agent to fund Tenant Improvements and Leasing Commissions (the “Leasing
Reserve Account”) into which Borrower shall deposit on the date hereof $0.00. The Borrower shall
also establish a sub-account of the Leasing Reserve Account for the AFL Property (the “AFL Leasing
Reserve Account”) and a sub-account for the Little Arch Property (the “Little Arch Leasing Reserve
Account”). In addition, Borrower shall deposit with Lender (i) into the AFL Leasing Reserve
Account any sums required to be deposited pursuant to the terms of Sections 10.2(c) and 10.3(c),
(ii) into the AFL Leasing Reserve Account or Little Arch Leasing Reserve Account, as appropriate,
any sum or termination fee payable to Borrower in connection with any Tenant’s election to exercise
any early termination option contained in its respective lease of space at the Property (the
“Termination Fee Deposit”) on the date of Borrower’s receipt thereof and (iii) into the Little Arch
Leasing Reserve Account any amounts received from the Tenant Letter of Credit. Amounts so
deposited into the Leasing Reserve Account or any sub-account and all other funds deposited therein
pursuant to Article 10 shall hereinafter be referred to as the “Leasing Reserve Funds.”

     (c) The AFL Leasing Reserve Account shall be an interest-bearing escrow deposit account for
the reimbursement of approved market rate leasing commissions and tenant improvement costs for the
AFL Space at the Property. Provided that no Event of Default exists, amounts on deposit in the AFL
Leasing Reserve Account shall be released to Borrower not more than once per month for the
reimbursement of approved market rate tenant improvement and leasing commission expenses incurred
by Borrower in connection with the AFL Space at the Property leased by Borrower to an AFL
Acceptable Replacement Tenant (defined below) upon delivery by Borrower to Lender of evidence,
satisfactory to Lender, that the AFL Space at the Property has been partially or fully leased by a
tenant or tenants acceptable to Lender in its sole reasonable discretion (which shall include an
acceptable renewal of the current AFL Tenant) under a fully executed lease containing terms and
conditions that are acceptable to Lender, in its sole reasonable discretion, with market lease
terms and a lease term of not less than five (5) years at a rent equal or greater than $6.00 per
square foot (the “AFL Acceptable Replacement Tenant”), and Lender shall have received and approved
the following for the applicable AFL Acceptable Replacement Tenant space, (i) copies of paid
invoices and lien waivers, satisfactory to Lender in its sole discretion, from all contractors
performing the tenant improvements to the space at the Property leased by such AFL Acceptable
Replacement Tenant, (ii) the receipt of an

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acceptable estoppel confirming the terms of such lease and the occupancy of the AFL Acceptable
Replacement Tenant, (iii) if required by the Lender, receipt of a Subordination, Non-disturbance
and Attornment Agreement in form and substance satisfactory to Lender executed by the AFL
Acceptable Replacement Tenant, (iv) delivery of evidence to Lender that such tenant has commenced
the payment of the first full month’s rent under such lease, (v) a final certificate of occupancy
for the tenant’s space and (vi) delivery of such other documents as Lender may reasonably require
(the items set forth in clauses (i) through (vi) are collectively referred to as the “AFL
Acceptable Replacement Tenant Requirements”). Notwithstanding the above, and provided that no
Event of Default exists, amounts on deposit in the AFL Leasing Reserve Account shall be released to
the Borrower not more than once per month in amounts not less than $50,000.00 per request for the
reimbursement of ninety percent (90%) of the market rate tenant improvement and leasing commission
expenses incurred by Borrower in connection with AFL Space at the Property leased by Borrower to a
single AFL Acceptable Replacement Tenant, and Lender shall have received and approved the following
for the applicable AFL Acceptable Replacement Tenant space: (a) copies of paid invoices and lien
waivers, satisfactory to Lender in its sole discretion, from all contractors performing the tenant
improvements to the space at the Property leased by such AFL Acceptable Replacement Tenant and (b)
evidence, satisfactory to Lender in its sole discretion, that the contract for the tenant
improvements and the leasing commission agreement incurred by Borrower with respect to such single
AFL Acceptable Replacement Tenant exceeds $50,000.00 (the conditions in clauses (a) and (b) above
are collectively referred to as the “AFL Partial Release Provisions”). The funds for the
reimbursement of approved market rate tenant improvement and leasing commission expenses for AFL
Space incurred by Borrower for an AFL Acceptable Replacement Tenant that are not released under the
AFL Partial Release Provisions for the AFL Space will not be released until Borrower complies with
the AFL Acceptable Replacement Tenant Requirements above. Provided that no Event of Default
exists, upon the occupancy of 100% of the AFL Space by AFL Acceptable Replacement Tenants in
compliance with the AFL Acceptable Replacement Tenant Requirements, or the current AFL Tenant’s
extension of the AFL Lease in accordance with the terms of the AFL Lease for a period no less than
five (5) years beyond the current expiration date, all amounts remaining on deposit in the AFL
Leasing Reserve Account shall be released to Borrower.

     (d) The Little Arch Leasing Reserve Account shall be an interest-bearing escrow deposit
account for the reimbursement of approved market rate leasing commissions and tenant improvement
costs for the Little Arch Space at the Property. Provided that no Event of Default exists, amounts
on deposit in the Little Arch Leasing Reserve Account shall be released to Borrower not more than
once per month for the reimbursement of approved market rate tenant improvement and leasing
commission expenses incurred by Borrower in connection with the Little Arch Space at the Property
leased by Borrower to a Little Arch Acceptable Replacement Tenant (defined below) upon delivery by
Borrower to Lender of evidence, satisfactory to Lender, that the Little Arch Space at the Property
has been partially or fully leased by a tenant or tenants acceptable to Lender in its sole
reasonable discretion under a fully executed lease containing terms and conditions that are
acceptable to the Lender, in its sole but reasonable discretion, with market lease terms and a
lease term of not less than five (5) years at a rent equal to or greater than the rent last paid by
the current Little Arch Tenant (the “Little Arch Acceptable Replacement Tenant”), and Lender shall
have received and approved the following for the

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applicable Little Arch Acceptable Replacement Tenant space, (i) copies of paid invoices and
lien waivers, satisfactory to Lender in its sole discretion, from all contractors performing the
tenant improvements to the space at the Property leased by such Little Arch Acceptable Replacement
Tenant, (ii) the receipt of an acceptable estoppel confirming the terms of such lease and the
occupancy of the Little Arch Acceptable Replacement Tenant, (iii) if required by the Lender,
receipt of a Subordination, Non-disturbance and Attornment Agreement in form and substance
satisfactory to Lender executed by the Little Arch Acceptable Replacement Tenant, (iv) delivery of
evidence to Lender that such tenant has commenced the payment of the first full month’s rent under
such lease, (v) a final certificate of occupancy for the tenant’s space and (vi) delivery of such
other documents as Lender may reasonably require (the items set forth in clauses (i) through (vi)
are collectively referred to as the “Little Arch Acceptable Replacement Tenant Requirements”).
Notwithstanding the above, and provided that no Event of Default exists, amounts on deposit in the
Little Arch Leasing Reserve Account shall be released to the Borrower not more than once per month
in amounts not less than $50,000.00 per request for the reimbursement of ninety percent (90%) of
the market rate tenant improvement and leasing commission expenses incurred by Borrower in
connection with Little Arch Space at the Property leased by Borrower to a single Little Arch
Acceptable Replacement Tenant, and Lender shall have received and approved the following for the
applicable Little Arch Acceptable Replacement Tenant space: (a) copies of paid invoices and lien
waivers, satisfactory to Lender in its sole discretion, from all contractors performing the tenant
improvements to the space at the Property leased by such Little Arch Acceptable Replacement Tenant
and (b) evidence, satisfactory to Lender in its sole discretion, that the contract for the tenant
improvements and the leasing commission agreement incurred by Borrower with respect to such single
Little Arch Acceptable Replacement Tenant exceeds $50,000.00 (the conditions in clauses (a) and (b)
above are collectively referred to as the “Little Arch Partial Release Provisions”). The funds for
the reimbursement of approved market rate tenant improvement and leasing commission expenses for
Little Arch Space incurred by Borrower for a Little Arch Acceptable Replacement Tenant that are not
released under the Little Arch Partial Release Provisions for the Little Arch Space will not be
released until Borrower complies with the Little Arch Acceptable Replacement Tenant Requirements
above. Provided that no Event of Default exists, upon the occupancy of 100% of the Little Arch
Space by Little Arch Acceptable Replacement Tenants in compliance with the Little Arch Acceptable
Replacement Tenant Requirements, all amounts remaining on deposit in the Little Arch Leasing
Reserve Account shall be released to Borrower.

     (e) In the event the Little Arch Property is defeased and the lien of the Mortgage is released
against the Little Arch Property in accordance with Section 5.1(b) of the Note, then Borrower shall
deliver to Lender a letter of credit from an acceptable lender in the amount of $650,000.00 that
satisfies the Letter of Credit Requirements and is otherwise reasonably acceptable to Lender (i)
within five (5) days after the occurrence and during the continuance of a Cash Management Period or
(ii) provided no Cash Management Period is then in effect, twelve (12) months prior to the Maturity
Date if the AFL Property is not fully leased by AFL Acceptable Replacement Tenants under Leases
extending not less than five (5) years after the Maturity Date. Such letter of credit shall be in
addition to and released, drawn on and disbursed in the same manner and to the same extent as funds
in the AFL Leasing Reserve Account.

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     Section 9.4 Required Work

     Borrower shall diligently pursue all Required Repairs and Replacements and Tenant Improvements
(collectively, the “Required Work”) to completion in accordance with the following requirements:

     (a) Lender reserves the right, at its option, to approve all contracts or work orders with
materialmen, mechanics, suppliers, subcontractors, contractors or other parties providing labor or
materials in connection with the Required Work to the extent such contracts or work orders exceed
$50,000. Upon Lender’s request, Borrower shall assign any contract or subcontract to Lender.

     (b) In the event Lender determines in its reasonable discretion that any Required Work is not
being or has not been performed in a workmanlike or timely manner, Lender shall have the option to
withhold disbursement for such unsatisfactory Required Work and to proceed under existing contracts
or to contract with third parties to complete such Required Work and to apply the Required Repair
Funds or the Replacement Reserve Funds, as applicable, toward the labor and materials necessary to
complete such Required Work, without providing any prior notice to Borrower and to exercise any and
all other remedies available to Lender upon an Event of Default hereunder.

     (c) In order to facilitate Lender’s completion of the Required Work, Borrower grants Lender
the right to enter onto the Property and perform any and all work and labor necessary to complete
the Required Work and/or employ watchmen to protect the Property from damage. All sums so expended
by Lender, to the extent not from the Reserve Funds, shall be deemed to have been advanced under
the Loan to Borrower and secured by the Mortgage. For this purpose Borrower constitutes and
appoints Lender its true and lawful attorney-in-fact with full power of substitution to complete or
undertake the Required Work in the name of Borrower upon Borrower’s failure to do so in a
workmanlike and timely manner. Such power of attorney shall be deemed to be a power coupled with
an interest and cannot be revoked. Borrower empowers said attorney-in-fact as follows: (i) to use
any of the Reserve Funds for the purpose of making or completing the Required Work; (ii) to make
such additions, changes and corrections to the Required Work as shall be necessary or desirable to
complete the Required Work; (iii) to employ such contractors, subcontractors, agents, architects
and inspectors as shall be required for such purposes; (iv) to pay, settle or compromise all
existing bills and claims which are or may become Liens against the Property, or as may be
necessary or desirable for the completion of the Required Work, or for clearance of title; (v) to
execute all applications and certificates in the name of Borrower which may be required by any of
the contract documents; (vi) to prosecute and defend all actions or proceedings in connection with
the Property or the rehabilitation and repair of the Property; and (vii) to do any and every act
which Borrower might do on its own behalf to fulfill the terms of this Agreement.

     (d) Nothing in this Section 9.4 shall: (i) make Lender responsible for making or completing
the Required Work; (ii) require Lender to expend funds in addition to the Reserve Funds to make or
complete any Required Work; (iii) obligate Lender to proceed with the

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Required Work; or (iv) obligate Lender to demand from Borrower additional sums to make or
complete any Required Work.

     (e) Borrower shall permit Lender and Lender’s agents and representatives (including, without
limitation, Lender’s engineer, architect, or inspector) or third parties performing Required Work
pursuant to this Section 9.4 to enter onto the Property during normal business hours (subject to
the rights of tenants under their Leases) to inspect the progress of any Required Work and all
materials being used in connection therewith, to examine all plans and shop drawings relating to
such Required Work which are or may be kept at the Property, and to complete any Required Work made
pursuant to this Section 9.4. Borrower shall cause all contractors and subcontractors to cooperate
with Lender and Lender’s representatives or such other persons described above in connection with
inspections described in this Section 9.4 or the completion of Required Work pursuant to this
Section 9.4.

     (f) Lender may, to the extent any Required Work would reasonably require an inspection of the
Property, inspect the Property at Borrower’s expense prior to making a disbursement of the Reserve
Funds in order to verify completion of the Required Work for which reimbursement is sought.
Borrower shall pay Lender a reasonable inspection fee not exceeding $1,000 for each such
inspection. Lender may require that such inspection be conducted by an appropriate independent
qualified professional selected by Lender and/or may require a copy of a certificate of completion
by an independent qualified professional acceptable to Lender prior to the disbursement of the
Reserve Funds. Borrower shall pay the expense of the inspection as required hereunder, whether
such inspection is conducted by Lender or by an independent qualified professional.

     (g) The Required Work and all materials, equipment, fixtures, or any other item comprising a
part of any Required Work shall be constructed, installed or completed, as applicable, free and
clear of all mechanic’s, materialman’s or other Liens (except for Permitted Encumbrances).

     (h) Before each disbursement of the Reserve Funds, Lender may require Borrower to provide
Lender with a search of title to the Property effective to the date of the disbursement, which
search shows that no mechanic’s or materialmen’s or other Liens of any nature have been placed
against the Property since the date of recordation of the Mortgage and that title to the Property
is free and clear of all Liens (except for Permitted Encumbrances).

     (i) All Required Work shall comply with all Legal Requirements and applicable insurance
requirements including, without limitation, applicable building codes, special use permits,
environmental regulations, and requirements of insurance underwriters.

     (j) Borrower hereby assigns to Lender all rights and claims Borrower may have against all
Persons supplying labor or materials in connection with the Required Work; provided, however, that
Lender may not pursue any such rights or claims unless an Event of Default has occurred and remains
uncured.

     Section 9.5 Release of Reserve Funds

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     (a) Upon written request from Borrower and satisfaction of the requirements set forth in this
Section 9.5, Lender shall disburse to Borrower amounts from (i) the Required Repair Account to the
extent necessary to pay for or reimburse Borrower for the actual costs of each Required Repair (but
not exceeding 125% of the original estimated cost of such Required Repair as set forth on Schedule
I, unless Lender has agreed to reimburse Borrower for such excess cost pursuant to Section 9.5(f))
or (ii) the Replacement Reserve Account to the extent necessary to reimburse Borrower for the
actual costs of any approved Replacements. Notwithstanding the preceding sentence, in no event
shall Lender be required to (x) disburse any amounts which would cause the amount of funds
remaining in the Required Repair Account after any disbursement (other than with respect to the
final disbursement) to be less than 125% of the then current estimated cost of completing all
remaining Required Repairs for the Property, (y) disburse funds from any of the Reserve Accounts if
an Event of Default exists, or (z) disburse funds from the Replacement Reserve Account to reimburse
Borrower for the costs of routine repairs or maintenance to the Property or for costs which are to
be reimbursed from funds held in the Required Repair or for Tenant Improvements and Leasing
Commissions.

     (b) With each request for disbursement, Borrower shall certify in writing to Lender that all
Required Work has been performed in accordance with all Legal Requirements and that all such
Required Work has been completed lien free and paid for in full or will be paid for in full upon
disbursement of the requested funds. In addition, each request for disbursement in excess of
$25,000 shall be on a form provided or approved by Lender and shall (i) include copies of invoices
for all items or materials purchased and all labor or services provided, (ii) specify (A) the
Required Work for which the disbursement is requested, (B) the quantity and price of each item
purchased, if the Required Work includes the purchase or replacement of specific items, (C) the
price of all materials (grouped by type or category) used in any Required Work other than the
purchase or replacement of specific items, and (D) the cost of all contracted labor or other
services applicable to each Required Work for which such request for disbursement is made, and
(iii) if requested by Lender, conditional lien waivers from each contractor, supplier, materialman,
mechanic or subcontractor with respect to the completion of its work or delivery of its materials.
Except as provided in Section 9.5(d), each request for disbursement shall be made only after
completion of the Required Repair or Replacement (or the portion thereof completed in accordance
with Section 9.5(d)), as applicable, for which disbursement is requested. Borrower shall provide
Lender evidence satisfactory to Lender in its reasonable judgment of such completion or
performance.

     (c) Any lien waiver delivered hereunder shall conform to all Legal Requirements and shall
cover all work performed and materials supplied (including equipment and fixtures) for the Property
by that contractor, supplier, subcontractor, mechanic or materialman through the date covered by
the current disbursement request.

     (d) If (i) the cost of any item of Required Work exceeds $100,000, (ii) the contractor
performing such Required Work requires periodic payments pursuant to terms of a written contract,
and (iii) Lender has approved in writing in advance such periodic payments, a request for
disbursement from the Reserve Accounts may be made after completion of a portion of the work under
such contract, provided (A) such contract requires payment upon completion of such

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portion of work, (B) the materials for which the request is made are on site at the Property
and are properly secured or have been installed in the Property, (C) all other conditions in this
Agreement for disbursement have been satisfied, and (D) in the case of a Replacement, funds
remaining in the Replacement Reserve Account are, in Lender’s judgment, sufficient to complete such
Replacement and other Replacements when required.

     (e) Borrower shall not make a request for, nor shall Lender have any obligation to make, any
disbursement from any Reserve Account more frequently than once in any calendar month and (except
in connection with the final disbursement) in any amount less than the lesser of (i) $10,000 or
(ii) the total cost of the Required Work for which the disbursement is requested.

     (f) In the event any Borrower requests a disbursement from the Required Repair Account to pay
for or to reimburse Borrower for the actual cost of labor or materials used in connection with
repairs or improvements other than the Required Repairs specified on Schedule I, or for a Required
Repair to the extent the cost of such Required Repair exceeds 125% of the estimated cost of such
Required Repair as set forth on Schedule I (in either case, an “Additional Required Repair”),
Borrower shall disclose in writing to Lender the reason why funds in the Required Repair Account
should be used to pay for such Additional Required Repair. If Lender determines that (i) such
Additional Required Repair is of the type intended to be covered by the Required Repair Account,
(ii) such Additional Required Repair is not covered or is not of the type intended to be covered by
the Replacement Reserve Account, (iii) costs for such Additional Required Repair are reasonable,
(iv) the funds in the Required Repair Account are sufficient to pay for such Additional Required
Repair and all other Required Repairs for the Property specified on Schedule I, and (v) all other
conditions for disbursement under this Agreement have been met, Lender may disburse funds from the
Required Repair Account.

     (g) In the event any Borrower requests a disbursement from the Replacement Reserve Account to
pay for or to reimburse Borrower for the actual cost of labor or materials used in connection with
repairs or improvements other than the Replacements specified in the Property Condition Report
prepared in connection with the closing of the Loan (an “Additional Replacement”), Borrower shall
disclose in writing to Lender the reason why funds in the Replacement Reserve Account should be
used to pay for such Additional Replacement. If Lender determines that (i) such Additional
Replacement is of the type intended to be covered by the Replacement Reserve Account, (ii) such
Additional Replacement is not covered or is not of the type intended to be covered by the Required
Repair Account, (iii) costs for such Additional Replacement are reasonable, (iv) the funds in the
Replacement Reserve Account are sufficient to pay for such Additional Replacement and all other
Replacements for the Property specified in the Property Condition Report, and (v) all other
conditions for disbursement under this Agreement have been met, Lender may disburse funds from the
Replacement Reserve Account.

     (h) Lender’s disbursement of any Reserve Funds or other acknowledgment of completion of any
Required Work in a manner satisfactory to Lender shall not be deemed a certification or warranty by
Lender to any Person that the Required Work has been completed in accordance with Legal
Requirements.

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     (i) If the funds in any Reserve Account should exceed the amount of payments actually applied
by Lender for the purposes of the account, Lender in its sole discretion shall either return any
excess to Borrower or credit such excess against future payments to be made to that Reserve
Account. If at any time Lender reasonably determines that the Reserve Funds are not or will not be
sufficient to make the required payments, Lender shall notify Borrower of such determination and
Borrower shall pay to Lender any amount necessary to make up the deficiency within ten (10) days
after notice from Lender to Borrower requesting payment thereof.

     (j) The insufficiency of any balance in any of the Reserve Accounts shall not relieve Borrower
from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents.

     (k) Upon the earlier to occur of (i) the timely completion of all Required Repairs and any
Additional Required Repairs, if any, in accordance with the requirements of this Agreement, as
verified by Lender in its reasonable discretion, or (ii) the payment in full of the Debt, all
amounts remaining on deposit, if any, in the Required Repair Account shall be returned to Borrower
or the Person shown on Lender’s records as being the owner of the Property and no other party shall
have any right or claim thereto.

     (l) Upon payment in full of the Debt, all amounts remaining on deposit, if any, in the
Replacement Reserve Account and any letters of credit required pursuant to Section 9.2(b) hereof
shall be returned to Borrower or the Person shown on Lender’s records as being the owner of the
Property and no other party shall have any right or claim thereto.

     (m) Upon the earlier to occur of (i) the completion of all Tenant Improvements and the full
performance by the leasing agent of its obligations with respect to any Leasing Commissions, as
verified by Lender in its reasonable discretion, or (ii) the payment in full of the Debt, all
amounts remaining on deposit, if any, in the Leasing Reserve Account shall be returned to Borrower
or the Person shown on Lender’s records as being the owner of the Property and no other party shall
have any right or claim thereto.

     (n) Notwithstanding anything contained herein to the contrary, funds in the Leasing Reserve
Account shall be disbursed in accordance with Section 9.3.

     Section 9.6 Tax and Insurance Reserve Funds

     (a) Borrower shall establish on the date hereof a sub-account of the Cash Management Account
with Lender or Lender’s agent sufficient to discharge Borrower’s obligations for the payment of
Taxes and Insurance Premiums pursuant to Section 5.4 and Section 8.1 hereof (the “Tax and Insurance
Reserve Account”) into which Borrower shall deposit on the date hereof $81,640.00 (which amount is
equal to the current annual Taxes and Insurance Premiums applicable to the Little Arch Property).
Except to the as provided in subsection (b) below, Borrower shall deposit into the Tax and
Insurance Reserve Account on each Scheduled Payment Date (a) one-twelfth of the Taxes that Lender
estimates will be payable during the next ensuing twelve (12) months or such higher amount
necessary to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30)
days prior to the earlier of (i) the

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date that the same will become delinquent and (ii) the date that additional charges or
interest will accrue due to the non-payment thereof, and (b) except to the extent Lender has waived
the insurance escrow because the insurance required hereunder is maintained under a blanket
insurance Policy acceptable to Lender in accordance with Section 8.1(c), one-twelfth of the
Insurance Premiums that Lender estimates will be payable during the next ensuing twelve (12) months
for the renewal of the coverage afforded by the Policies upon the expiration thereof or such higher
amount necessary to accumulate with Lender sufficient funds to pay all such Insurance Premiums at
least thirty (30) days prior to the expiration of the Policies (said amounts in (a) and (b) above
hereinafter called the “Tax and Insurance Reserve Funds”). Except to the extent Borrower is in
compliance with subsection (b) below, Lender will apply the Tax and Insurance Reserve Funds to
payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.4
and Section 8.1 hereof. In making any disbursement from the Tax and Insurance Reserve Account,
Lender may do so according to any bill, statement or estimate procured from the appropriate public
office or tax lien service (with respect to Taxes) or insurer or agent (with respect to Insurance
Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the
amount of the Tax and Insurance Reserve Funds shall exceed the amounts due for Taxes and Insurance
Premiums pursuant to Section 5.4 and Section 8.1 hereof, Lender shall, in its sole discretion,
return any excess to Borrower or credit such excess against future payments to be made to the Tax
and Insurance Reserve Account. In allocating any such excess, Lender may deal with the person
shown on Lender’s records as being the owner of the Property. Any amount remaining in the Tax and
Insurance Reserve Account after the Debt has been paid in full shall be returned to Borrower or the
person shown on Lender’s records as being the owner of the Property and no other party shall have
any right or claim thereto. If at any time Lender reasonably determines that the Tax and Insurance
Reserve Funds are not or will not be sufficient to pay Taxes and Insurance Premiums by the dates
set forth in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower
shall pay to Lender any amount necessary to make up the deficiency within ten (10) days after
notice from Lender to Borrower requesting payment thereof.

     (b) Notwithstanding anything contained in Section 9.6(a) to the contrary,

(i) so long as (a) the AFL Tenant directly pays the real estate taxes due on the AFL
Property, (b) there exists no Event of Default under the Loan Documents, (c) the Borrower
provides the Lender with evidence that the AFL Tenant has paid the real estate taxes due on
the AFL Property before they become delinquent and (d) the AFL Tenant or its lease
guarantors or the parent of AFL Tenant or its lease guarantors maintains a Moody’s rating
equal to or greater than Baa2, the Borrower shall not be required to make monthly deposits
into the Tax and Insurance Reserve Account for Taxes applicable to the AFL Property;
provided, however, in the event that at any time the foregoing requirements are not
satisfied, as determined by Lender in its discretion, the Borrower shall immediately
commence making monthly deposits into the Tax and Insurance Reserve Account for Taxes on the
AFL Property in amounts determined by Lender in its discretion;

(ii) so long as (a) there exists no Event of Default under the Loan Documents, and (b) the
Borrower provides the Lender with evidence that Borrower has paid or caused to

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be paid the real estate taxes due on the Little Arch Property before they become delinquent,
the Borrower shall not be required to make monthly deposits into the Tax and Insurance
Reserve Account for Taxes applicable to the Little Arch Property; provided, however, in the
event that at any time the foregoing requirements are not satisfied, as determined by Lender
in its discretion, the Borrower shall immediately commence making monthly deposits into the
Tax and Insurance Reserve Account for Taxes on the Little Arch Property in amounts
determined by Lender in its discretion;

(iii) so long as (a) the Borrower is maintaining the insurance required under the Loan
Documents through a blanket insurance policy acceptable to the Lender, (b) there exists no
Event of Default under the Loan Documents, and (c) the Borrower provides the Lender with
evidence of its annual renewal of such blanket insurance policy thirty (30) days prior to
its scheduled expiration, the Borrower shall not be required to make monthly deposits into
the Tax and Insurance Reserve Account for Insurance Premiums; provided, however, in the
event that at any time a blanket insurance policy approved by the Lender is not in effect,
the Borrower shall immediately provide for either (a) an individual policy for each Property
complying with the terms and conditions set forth in the Loan Documents and shall
immediately commence making monthly deposits into the Tax and Insurance Reserve Account for
Insurance Premiums in amounts determined by the Lender in its discretion or (b) a
replacement blanket insurance policy complying with the terms and conditions set forth in
the Loan Documents;

(iv) so long as (a) the AFL Tenant is maintaining the insurance required through an
insurance policy satisfying the requirements contained in the Loan Documents and such
insurance is otherwise acceptable to the Lender, (b) there exists no Event of Default under
the Loan Documents, (c) the Borrower provides the Lender with evidence of the AFL Tenant’s
annual renewal of such insurance policy thirty (30) days prior to its scheduled expiration
and (d) the AFL Tenant or its lease guarantors or the parent of AFL Tenant or its lease
guarantors maintains a Moody’s rating equal to or greater than Baa2, the Borrower shall not
be required to make monthly deposits into the Tax and Insurance Reserve Account for
Insurance Premiums applicable to the AFL Property; provided, however, in the event that at
any time an insurance policy approved by the Lender is not in effect, Borrower shall
immediately provide for either (a) an individual policy for the AFL Property complying with
the terms and conditions set forth in the Loan Documents and shall immediately commence
making monthly deposits into the Tax and Insurance Reserve Account for Insurance Premiums in
amounts determined by the Lender in its discretion or (b) a replacement blanket insurance
policy complying with the terms and conditions set forth in the Loan Documents; and

(v) so long as (a) the Borrower is maintaining the insurance required through an insurance
policy satisfying the requirements contained in the Loan Documents and such insurance is
otherwise acceptable to the Lender, (b) there exists no Event of Default under the Loan
Documents, and (c) the Borrower provides the Lender with evidence of the annual renewal of
such insurance policy thirty (30) days prior to its scheduled expiration, the Borrower shall
not be required to make monthly deposits into the Tax and Insurance Reserve Account for
Insurance Premiums applicable to the Little Arch Property; provided, however, in the event
that at any time an insurance policy approved

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by the Lender is not in effect, Borrower shall immediately provide for either (a) an
individual policy for the Little Arch Property complying with the terms and conditions set
forth in the Loan Documents and shall immediately commence making monthly deposits into the
Tax and Insurance Reserve Account for Insurance Premiums in amounts determined by the Lender
in its discretion or (b) a replacement blanket insurance policy complying with the terms and
conditions set forth in the Loan Documents.

     Section 9.7 Excess Cash.

     Borrower shall establish on the date hereof a sub-account of the Cash Management Account into
which Borrower shall deposit all Excess Cash on each Scheduled Payment Date during any Cash
Management Period (the “Excess Cash Reserve Account”). Amounts so deposited shall hereinafter be
referred to as the “Excess Cash Reserve Funds.” Provided no Event of Default has occurred and is
continuing, sums from the Excess Cash Reserve Account shall be disbursed to Borrower’s Account upon
the earlier to occur of (a) payment in full of the Debt or (b) the discontinuation of a Cash
Management Period. In the event a Cash Management Period occurs twice during the term of the Loan,
Borrower shall not be entitled to any disbursement of the amounts in the Excess Cash Reserve
Account during the remaining term of the Loan, the Cash Management Period shall continue, and
Borrower shall continue to be obligated to pay Excess Cash to Lender on each Scheduled Payment Date
until the Debt is paid in full.

     Section 9.8 Operating Expenses; Extraordinary Expenses.

     (a) Borrower shall establish on the date hereof a sub-account of the Cash Management Account
into which Borrower shall deposit, on each Scheduled Payment Date during any Cash Management
Period, funds sufficient to pay all Operating Expenses to be incurred for the following month in
accordance with the Annual Budget approved by Lender (the “Operating Expense Reserve Account.”
Amounts so deposited shall hereinafter be referred to as the “Operating Expense Reserve Funds.”
Provided no Event of Default has occurred and is continuing, sums from the Operating Expense
Reserve Account shall be disbursed by Lender to Borrower following receipt and approval of
Borrower’s written request for the payment of such Operating Expenses.

     (b) Borrower shall establish on the date hereof a sub-account of the Cash Management Account
with Lender or Lender’s agent into which Borrower shall deposit, on each Scheduled Payment Date
during any Cash Management Period, funds sufficient to pay any Extraordinary Expenses for the
following month which have been approved by Lender (the “Extraordinary Expense Reserve Account.”)
Amounts so deposited shall hereinafter be referred to as the “Extraordinary Expense Reserve Funds.”
Provided no Event of Default has occurred and is continuing, sums from the Extraordinary Expense
Reserve Account shall be disbursed by Lender to Borrower following receipt and approval of
Borrower’s written request for the payment of such Extraordinary Expenses.

     Section 9.9 Reserve Funds Generally

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(a) (i) Except for the Interest Bearing Reserve Accounts, no earnings or interest on the
Reserve Accounts shall be payable to Borrower. Neither Lender nor any loan servicer that at
any time holds or maintains such non-interest-bearing Reserve Accounts shall have any
obligation to keep or maintain such Reserve Accounts or any funds deposited therein in
interest-bearing accounts. If Lender or any such loan servicer elects in its sole and
absolute discretion to keep or maintain any non-interest-bearing Reserve Account or any
funds deposited therein in an interest-bearing account, the account shall be an Eligible
Account and (A) such funds shall not be invested except in Permitted Investments, and (B)
all interest earned or accrued thereon shall be for the account of and retained by Lender or
such loan servicer.

      (ii) Funds deposited in the Interest Bearing Reserve Accounts shall be held in an
interest-bearing business savings account and interest shall be credited to Borrower. In no
event shall Lender or any loan servicer that at any time holds or maintains the Interest
Bearing Reserve Accounts be required to select any particular interest-bearing account or
the account that yields the highest rate of interest, provided that selection of the account
shall be consistent with the general standards at the time being utilized by Lender or the
loan servicer, as applicable, in establishing similar accounts for loans of comparable type.
All such interest shall be and become part of the applicable Interest Bearing Reserve
Account and shall be disbursed in accordance with Section 9.5 above; provided, however, that
Lender may, at its election, retain any such interest for its own account during the
occurrence and continuance of an Event of Default. Borrower agrees that it shall include
all interest on Reserve Funds attributable to the Interest Bearing Reserve Accounts as the
income of Borrower (and, if Borrower is a partnership or other pass-through entity, the
partners, members or beneficiaries of Borrower, as the case may be), and shall be the owner
of such Reserve Funds for federal and applicable state and local tax purposes, except to the
extent that Lender retains any interest for its own account during the occurrence and
continuance of an Event of Default as provided herein.

     (b) Borrower grants to Lender a first-priority perfected security interest in, and assigns and
pledges to Lender, each of the Reserve Accounts and any and all Reserve Funds now or hereafter
deposited in the Reserve Accounts as additional security for payment of the Debt. Until expended
or applied in accordance herewith, the Reserve Accounts and the Reserve Funds shall constitute
additional security for the Debt. The provisions of this Section 9.9 are intended to give Lender
or any subsequent holder of the Loan “control” of the Reserve Accounts within the meaning of the
UCC.

     (c) The Reserve Accounts and any and all Reserve Funds now or hereafter deposited in the
Reserve Accounts shall be subject to the exclusive dominion and control of Lender, which shall hold
the Reserve Accounts and any or all Reserve Funds now or hereafter deposited in the Reserve
Accounts subject to the terms and conditions of this Agreement. Borrower shall have no right of
withdrawal from the Reserve Accounts or any other right or power with respect to the Reserve
Accounts or any or all of the Reserve Funds now or hereafter deposited in the Reserve Accounts,
except as expressly provided in this Agreement.

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     (d) Lender shall furnish or cause to be furnished to Borrower, without charge, an annual
accounting of each Reserve Account in the normal format of Lender or its loan servicer, showing
credits and debits to such Reserve Account and the purpose for which each debit to each Reserve
Account was made.

     (e) As long as no Event of Default has occurred, Lender shall make disbursements from the
Reserve Accounts in accordance with this Agreement. All such disbursements shall be deemed to have
been expressly pre-authorized by Borrower, and shall not be deemed to constitute the exercise by
Lender of any remedies against Borrower unless an Event of Default has occurred and is continuing
and Lender has expressly stated in writing its intent to proceed to exercise its remedies as a
secured party, pledgee or lienholder with respect to the Reserve Accounts.

     (f) If any Event of Default occurs, Borrower shall immediately lose all of its rights to
receive disbursements from the Reserve Accounts until the earlier to occur of (i) the date on which
such Event of Default is cured to Lender’s satisfaction, or (ii) the payment in full of the Debt.
In addition, at Lender’s election, Borrower shall lose all of its rights to receive interest on the
Interest Bearing Reserve Accounts during the occurrence and continuance of an Event of Default.
Upon the occurrence of any Event of Default, Lender may exercise any or all of its rights and
remedies as a secured party, pledgee and lienholder with respect to the Reserve Accounts. Without
limitation of the foregoing, upon any Event of Default, Lender may use and disburse the Reserve
Funds (or any portion thereof) for any of the following purposes: (A) repayment of the Debt,
including, but not limited to, principal prepayments and the prepayment premium applicable to such
full or partial prepayment (as applicable); (B) reimbursement of Lender for all losses, fees, costs
and expenses (including, without limitation, reasonable legal fees) suffered or incurred by Lender
as a result of such Event of Default; (C) payment of any amount reasonably expended in exercising
any or all rights and remedies available to Lender at law or in equity or under this Agreement or
under any of the other Loan Documents; (D) payment of any item from any of the Reserve Accounts as
required or permitted under this Agreement; or (E) any other purpose permitted by applicable law;
provided, however, that any such application of funds shall not cure or be deemed to cure any Event
of Default. Without limiting any other provisions hereof, each of the remedial actions described
in the immediately preceding sentence shall be deemed to be a commercially reasonable exercise of
Lender’s rights and remedies as a secured party with respect to the Reserve Funds and shall not in
any event be deemed to constitute a setoff or a foreclosure of a statutory banker’s lien. Nothing
in this Agreement shall obligate Lender to apply all or any portion of the Reserve Funds to effect
a cure of any Event of Default, or to pay the Debt, or in any specific order of priority. The
exercise of any or all of Lender’s rights and remedies under this Agreement or under any of the
other Loan Documents shall not in any way prejudice or affect Lender’s right to initiate and
complete a foreclosure under the Mortgage.

     (g) The Reserve Funds shall not constitute escrow or trust funds and may be commingled with
other monies held by Lender. Notwithstanding anything else herein to the contrary, Lender may
commingle in one or more Eligible Accounts (i) any and all funds controlled by Lender, including,
without limitation, funds pledged in favor of Lender by other borrowers, whether for the same
purposes as the Reserve Accounts or otherwise. Without

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limiting any other provisions of this Agreement or any other Loan Document, the Reserve
Accounts may be established and held in such name or names as Lender or its loan servicer, as agent
for Lender, shall deem appropriate, including, without limitation, in the name of Lender or such
loan servicer as agent for Lender. In the case of any Reserve Account which is held in a
commingled account, Lender or its loan servicer, as applicable, shall maintain records sufficient
to enable it to determine at all times which portion of such account is related to the Loan. The
Reserve Accounts are solely for the protection of Lender. With respect to the Reserve Accounts,
Lender shall have no responsibility beyond the allowance of due credit for the sums actually
received by Lender or beyond the reimbursement or payment of the costs and expenses for which such
accounts were established in accordance with their terms. Upon assignment of the Loan by Lender,
any Reserve Funds shall be turned over to the assignee and, provided such assignee assumes all
obligations in connection therewith, any responsibility of Lender as assignor shall terminate. The
requirements of this Agreement concerning the Reserve Accounts in no way supersede, limit or waive
any other rights or obligations of the parties under any of the Loan Documents or under applicable
law.

     (h) Borrower shall not, without obtaining the prior written consent of Lender, further pledge,
assign or grant any security interest in the Reserve Accounts or the Reserve Funds deposited
therein or permit any Lien to attach thereto, except for the security interest granted in this
Section 9.9, or any levy to be made thereon, or any UCC Financing Statements, except those naming
Lender as the secured party, to be filed with respect thereto.

     (i) Borrower will maintain the security interest created by this Section 9.9 as a first
priority perfected security interest and will defend the right, title and interest of Lender in and
to the Reserve Accounts and the Reserve Funds against the claims and demands of all Persons
whomsoever. At any time and from time to time, upon the written request of Lender, and at the sole
expense of Borrower, Borrower will promptly and duly execute and deliver such further instruments
and documents and will take such further actions as Lender reasonably may request for the purpose
of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein
granted.

     (j) Lender shall be protected in acting upon any notice, resolution, request, consent, order,
certificate, report, opinion, bond or other paper, document or signature believed by Lender to be
genuine, and it may be assumed conclusively that any Person purporting to give any of the foregoing
in connection with the Reserve Account’s has been duly authorized to do so. Lender may consult
with counsel, and the opinion of such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered by them hereunder and in good faith in
accordance therewith. Lender shall not be liable to Borrower for any act or omission done or
omitted to be done by Lender in reliance upon any instruction, direction or certification received
by Lender and without gross negligence or willful misconduct.

     (k) Beyond the exercise of reasonable care in the custody thereof, Lender shall not have any
duty as to any Reserve Funds in its possession or control as agent therefor or bailee thereof or
any income thereon or the preservation of rights against any person or otherwise with respect
thereto. In no event shall Lender or its Affiliates, agents, employees or bailees, be liable or
responsible for any loss or damage to any of the Reserve Funds, or for any diminution in value

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thereof, by reason of the act or omission of Lender, except to the extent that such loss or
damage results from Lender’s gross negligence or willful misconduct or intentional nonperformance
by Lender of its obligations under this Agreement.

     Section 9.10 Tenant Letter of Credit

     (a) Pursuant to the terms of the Little Arch Lease, the Little Arch Tenant has provided
Borrower with a Standby Letter of Credit No. L055074 in the amount of $950,000.00 issued by Regions
Bank (together with all modifications, renewals, replacements and substitutions therefor, the
“Tenant Letter of Credit”) for the benefit of Little Arch. Borrower shall enforce and comply with
the Letter of Credit and all provisions of the Little Arch Lease relating to the Tenant Letter of
Credit.

     (b) Upon the occurrence of any event or circumstance permitting Borrower to draw on the Tenant
Letter of Credit in accordance with the terms of the Little Arch Lease, Borrower shall promptly
draw on the Tenant Letter of Credit and deposit all proceeds thereof directly into the Little Arch
Leasing Reserve Account to be disbursed in accordance with the terms thereof.

     (c) As additional collateral for the Loan, Borrower hereby assigns to Lender and grants Lender
a security interest in all right, title and interest of Borrower in and to the Tenant Letter of
Credit and all proceeds thereof and all accounts into which any proceeds of the Tenant Letter of
Credit are from time to time deposited, including, without limitation, the Little Arch Leasing
Reserve Account. Borrower shall notify the issuer of the Tenant Letter of Credit of such
collateral assignment and security interest and direct such issuer to make payment directly to the
Little Arch Leasing Reserve Account in the event any draw is made on the Tenant Letter of Credit.
Borrower shall use commercially reasonable efforts to obtain the consent and acknowledgment of such
issuer with respect to the rights of Lender under this subsection and the agreement of such issuer
to make such payments directly to the Little Arch Leasing Reserve Account pursuant to the
instructions of the Lender.

     (d) In no event shall Lender by virtue of the provisions of this Section be deemed in any
manner to have assumed any obligations with respect to the Tenant Letter of Credit or the Little
Arch Lease, nor shall Lender be liable to Borrower, the tenant under the Little Arch Lease or the
issuer of the Tenant Letter of Credit. Borrower agrees to indemnify and hold Lender harmless from
and against any liability, loss or damage which Lender, its directors, officers, agents and other
representatives may from time to time incur as a result of any claims or demands arising out of or
in any way connected with the matters contemplated by this Section 9.10.

ARTICLE 10

CASH MANAGEMENT

     Section 10.1 Lockbox Account and Cash Management Account

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     (a) After a Lockbox Event, Borrower shall promptly deliver to the Lender a fully executed
Lockbox Agreement and, pursuant to the Lockbox Agreement, shall maintain a non-interest bearing
Eligible Account into which Borrower shall, and shall cause Manager to, deposit or cause to be
deposited, all Rents and other revenue from the Property (such account, all funds at any time on
deposit therein and any proceeds, replacements or substitutions of such account or funds therein,
are referred to herein as the “Lockbox Account”). Borrower acknowledges and confirms that Borrower
has established, and Borrower covenants that it shall maintain, an interest bearing Eligible
Account into which Rents, or, after a Lockbox Event, funds in the Lockbox Account, shall be
transferred pursuant to the terms of Section 10.2 or 10.3, as applicable (such account, the
sub-accounts thereof, all funds at any time on deposit therein and any proceeds, replacements or
substitutions of such account or funds therein, are referred to herein as the “Cash Management
Account”).

     (b) The Lockbox Account and Cash Management Account shall each be in the name of Borrower for
the benefit of Lender, provided that Borrower shall be the owner of all funds on deposit in such
accounts for federal and applicable state and local tax purposes (except to the extent Lender
retains any interest earned on the Cash Management Account for its own account following the
occurrence and during the continuance of an Event of Default). Sums on deposit in the Cash
Management Account shall not be invested except in such Permitted Investments as determined and
directed by Lender and all income earned thereon shall be the income of Borrower and be applied to
and become part of the Cash Management Account, to be disbursed in accordance with this Article 10.
Neither Lockbox Bank nor Lender shall have any liability for any loss resulting from the
investment of funds in Permitted Investments in accordance with the terms and conditions of this
Agreement.

     (c) The Lockbox Account and Cash Management Account shall be subject to the exclusive dominion
and control of Lender and, except as otherwise expressly provided herein, neither Borrower, Manager
nor any other party claiming on behalf of, or through, Borrower or Manager, shall have any right of
withdrawal therefrom or any other right or power with respect thereto.

     (d) Borrower agrees to pay the customary fees and expenses of Deposit Bank (incurred in
connection with maintaining the Lockbox Account) and Lender (incurred in connection with
maintaining the Lockbox Account) and any successors thereto in connection therewith, as separately
agreed by them from time to time.

     (e) Lender shall be responsible for the performance only of such duties with respect to the
Cash Management Account as are specifically set forth herein, and no duty shall be implied from any
provision hereof. Lender shall not be under any obligation or duty to perform any act which would
involve it in expense or liability or to institute or defend any suit in respect hereof, or to
advance any of its own monies. Borrower shall indemnify and hold Lender and its directors,
employees, officers and agents harmless from and against any loss, cost or damage (including,
without limitation, reasonable attorneys’ fees and disbursements) incurred by such parties in
connection with the Cash Management Account other than such as result from the gross negligence or
willful misconduct of Lender or intentional nonperformance by Lender of its obligations under this
Agreement.

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     Section 10.2 Deposits and Withdrawals

     (a) Prior to a Lockbox Event, Borrower represents, warrants and covenants that:

      (i) Concurrently with the execution of this Agreement, Borrower shall notify and advise
each Tenant under each Lease (whether such Lease is presently effective or executed after
the date hereof) to send directly to the Cash Management Account all payments of Rents or
any other item payable under such Leases pursuant to an instruction letter in the form of
Exhibit B attached hereto (a “Tenant Direction Letter”). If Borrower fails to provide any
such notice (and without prejudice to Lender’s rights with respect to such default), Lender
shall have the right, and Borrower hereby grants to Lender a power of attorney (which power
of attorney shall be coupled with an interest and irrevocable so long as any portion of the
Debt remains outstanding), to sign and deliver a Tenant Direction Letter;

      (ii) Borrower shall, and shall cause Manager to, instruct all Persons that maintain
open accounts with Borrower or Manager with respect to the Property or with whom Borrower or
Manager does business on an “accounts receivable” basis with respect to the Property to
deliver all payments due under such accounts to the Cash Management Account. Neither
Borrower nor Manager shall direct any such Person to make payments due under such accounts
in any other manner;

      (iii) All Rents or other income from the Property shall (A) be deemed additional
security for payment of the Debt and shall be held in trust for the benefit, and as the
property, of Lender, (B) not be commingled with any other funds or property of Borrower or
Manager, and (C) if received by Borrower or Manager notwithstanding the delivery of a Tenant
Direction Letter, be deposited in the Lockbox Account within one (1) Business Day of
receipt;

      (iv) Without the prior written consent of Lender, so long as any portion of the Debt
remains outstanding, except as provided in Section 10.3 hereof, neither Borrower nor Manager
shall terminate, amend, revoke or modify any Tenant Direction Letter in any manner
whatsoever or direct or cause any Tenant to pay any amount in any manner other than as
provided in the related Tenant Direction Letter; and

      (v) So long as any portion of the Debt remains outstanding, neither Borrower, Manager
nor any other Person shall open or maintain any accounts other than the Cash Management
Account into which revenues from the ownership and operation of the Property are deposited.
The foregoing shall not prohibit Borrower from utilizing one or more separate accounts for
the disbursement or retention of funds that have been transferred to Borrower pursuant to
the express terms of this Agreement.

     (b) Provided no Event of Default has occurred, and provided Borrower has provided the letter
of credit required by Section 9.2, at all times other than during a Cash Management Period,
Borrower shall have the sole right to withdraw funds on deposit in the Cash Management

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Account and may do so on a monthly basis. Upon the commencement of a Cash Management Period,
the occurrence of an Event of Default or the Borrower’s failure to provide the letter of credit
required by Section 9.2, (i) all rights of Borrower to the withdrawal of funds from the Cash
Management Account shall immediately cease and be automatically vested with Lender, and (ii) all
collected and available balances in the Cash Management Account shall be held until disbursed by
Lender pursuant to Section 10.2(c).

     (c) On each Scheduled Payment Date (and if such day is not a Business Day, then the
immediately preceding day which is a Business Day) commencing the month immediately following the
month during which the Borrower no longer has a right to withdraw funds from the Cash Management
Account, Borrower hereby irrevocably authorizes Lender to withdraw or allocate to the sub-accounts
of the Cash Management Account, as the case may be, amounts received in the Cash Management
Account, in each case to the extent that sufficient funds remain therefor:

      (i) funds sufficient to pay the monthly deposits to the Tax and Insurance
Reserve Account shall be allocated to the Tax and Insurance Reserve Account to be
held and disbursed in accordance with Section 9.6;

      (ii) funds sufficient to pay the Monthly Payment Amount shall be withdrawn and
paid to Lender;

      (iii) funds sufficient to pay the Replacement Reserve Monthly Deposit and the
amounts necessary to replace the letter of credit to the extent the Borrower failed
to provide the letter of credit required by Section 9.2 shall be allocated to the
Replacement Reserve Account to be held and disbursed in accordance with Section 9.5;

      (iv) Termination Fee Deposits shall be allocated to the Leasing Reserve Account
to be held and disbursed in accordance with Section 9.3;

      (v) funds sufficient to pay any interest accruing at the Default Rate, late
payment charges, if any, and any other sums due and payable to Lender under any of
the Loan Documents, shall be withdrawn and paid to Lender and applied against such
items;

      (vi) funds sufficient to pay Operating Expenses (to the extent actually
incurred) for the following month in accordance with the related Annual Budget shall
be allocated to the Operating Expense Reserve Account to be held in accordance with
Section 9.8;

      (vii) funds sufficient to pay any Extraordinary Expenses for the following
month which have been approved by Lender shall be allocated to the Extraordinary
Expense Account to be held and disbursed in accordance with Section 9.8; and

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      (viii) funds in an amount equal to the balance (if any) remaining on deposit in
the Cash Management Account after the foregoing withdrawals and allocations shall be
transferred to (A) during the Cash Management Period, the AFL Leasing Reserve
Account and (B) after the end of the Cash Management Period, and provided there is
no Event of Default, such funds shall be transferred to the Borrower’s Account.

     (d) Notwithstanding anything to the contrary herein, Borrower acknowledges that Borrower is
responsible for monitoring the sufficiency of funds deposited in the Cash Management Account and
that Borrower is liable for any deficiency in available funds, irrespective of whether Borrower has
received any account statement, notice or demand from Lender or Lender’s servicer. If the amount
on deposit in the Cash Management Account is insufficient to make all of the withdrawals and
allocations described in Section 10.2(c)(i) through (vi) above, Borrower shall deposit such
deficiency into the Cash Management Account within five (5) days (provided that such five day
period shall not constitute a grace period for any default or Event of Default under this Agreement
or any other Loan Document based on a failure to satisfy any monetary obligation provided in any
Loan Document).

     (e) If an Event of Default shall have occurred and be continuing, Borrower hereby irrevocably
authorizes Lender to make any and all withdrawals from the Cash Management Account and transfers
between any of the Reserve Accounts as Lender shall determine in Lender’s sole and absolute
discretion and Lender may use all funds contained in any such accounts for any purpose, including
but not limited to repayment of the Debt in such order, proportion and priority as Lender may
determine in its sole and absolute discretion. Lender’s right to withdraw and apply funds as
stated herein shall be in addition to all other rights and remedies provided to Lender under this
Agreement, the Note, the Mortgage and the other Loan Documents.

     Section 10.3 Deposits and Withdrawals After a Lockbox Event

     (a) After a Lockbox Event, Borrower represents, warrants and covenants that:

      (i) Concurrently with the occurrence of a Lockbox Event, Borrower shall notify and
advise each Tenant under each Lease (whether such Lease is presently effective or executed
after the date hereof) to send directly to the Lockbox all payments of Rents or any other
item payable under such Leases pursuant to a Tenant Direction Letter. If Borrower fails to
provide any such notice (and without prejudice to Lender’s rights with respect to such
default), Lender shall have the right, and Borrower hereby grants to Lender a power of
attorney (which power of attorney shall be coupled with an interest and irrevocable so long
as any portion of the Debt remains outstanding), to sign and deliver a Tenant Direction
Letter;

      (ii) Borrower shall, and shall cause Manager to, instruct all Persons that maintain
open accounts with Borrower or Manager with respect to the Property or with whom Borrower or
Manager does business on an “accounts receivable” basis with respect to the Property to
deliver all payments due under such accounts to the Lockbox Account.

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Neither Borrower nor Manager shall direct any such Person to make payments due under
such accounts in any other manner;

      (iii) All Rents or other income from the Property shall (A) be deemed additional
security for payment of the Debt and shall be held in trust for the benefit, and as the
property, of Lender, (B) not be commingled with any other funds or property of Borrower or
Manager, and (C) if received by Borrower or Manager notwithstanding the delivery of a Tenant
Direction Letter, be deposited in the Lockbox Account within one (1) day of receipt;

      (iv) Without the prior written consent of Lender, so long as any portion of the Debt
remains outstanding, neither Borrower nor Manager shall terminate, amend, revoke or modify
any Tenant Direction Letter in any manner whatsoever or direct or cause any Tenant to pay
any amount in any manner other than as provided in the related Tenant Direction Letter; and

      (v) So long as any portion of the Debt remains outstanding, neither Borrower, Manager
nor any other Person shall open or maintain any accounts other than the Lockbox Account into
which revenues from the ownership and operation of the Property are deposited. The
foregoing shall not prohibit Borrower from utilizing one or more separate accounts for the
disbursement or retention of funds that have been transferred to Borrower pursuant to the
express terms of this Agreement.

     (b) Provided no Event of Default has occurred, and provided Borrower has provided the letter
of credit required by Section 9.2, at all times Borrower shall have the sole right to withdraw
funds on deposit in the Lockbox Account and may do so from time to time. Upon receipt of notice
pursuant to the Lockbox Agreement by Lockbox Bank of the occurrence of an Event of Default or the
Borrower’s failure to provide the letter of credit required by Section 9.2, (i) all rights of
Borrower to the withdrawal of funds from the Lockbox Account shall immediately cease and be
automatically vested with Lender, and (ii) Lender shall have the right to transfer, or cause to be
transferred, and Borrower hereby irrevocably authorizes Lender to transfer, or cause to be
transferred, and Lender shall transfer, on each Business Day by wire transfer or other method of
transfer mutually agreeable to Lockbox Bank and Lender of immediately available funds, all
collected and available balances in the Lockbox Account to the Cash Management Account to be held
until disbursed by Lender pursuant to Section 10.3(c). Provided no Event of Default has occurred
and is continuing, all rights of Lender to the withdrawal of funds from the Lockbox Account shall
immediately cease and be automatically vested with Borrower upon the earlier to occur of payment in
full of the Debt or the satisfaction of Section 9.2.

     (c) On each Scheduled Payment Date (and if such day is not a Business Day, then the
immediately preceding day which is a Business Day) commencing the month immediately following the
month during which the Borrower no longer has a right to withdraw funds from the Lockbox Account,
Borrower hereby irrevocably authorizes Lender to withdraw or allocate to the sub-accounts of the
Cash Management Account, as the case may be, amounts received in the Cash Management Account, in
each case to the extent that sufficient funds remain therefor:

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      (i) funds sufficient to pay the monthly deposits to the Tax and Insurance
Reserve Account shall be allocated to the Tax and Insurance Reserve Account to be
held and disbursed in accordance with Section 9.6;

      (ii) funds sufficient to pay the Monthly Payment Amount shall be withdrawn and
paid to Lender;

      (iii) funds sufficient to pay the Replacement Reserve Monthly Deposit and the
amounts necessary to replace the letter of credit to the extent the Borrower failed
to provide the letter of credit required by Section 9.2 shall be allocated to the
Replacement Reserve Account to be held and disbursed in accordance with Section 9.5;

      (iv) Termination Fee Deposits shall be allocated to the Leasing Reserve Account
to be held and disbursed in accordance with Section 9.3;

      (v) funds sufficient to pay any interest accruing at the Default Rate, late
payment charges, if any, and any other sums due and payable to Lender under any of
the Loan Documents, shall be withdrawn and paid to Lender and applied against such
items;

      (vi) funds sufficient to pay Lockbox Bank for all costs and expenses incurred
by Lockbox Bank in connection with the maintenance and administration of the Lockbox
Account;

      (vii) funds sufficient to pay Operating Expenses (to the extent actually
incurred) for the following month incurred in accordance with the related Annual
Budget shall be allocated to the Operating Expense Reserve Account to be held and
disbursed in accordance with Section 9.8;

      (viii) funds sufficient to pay any Extraordinary Expenses for the following
month which have been approved by Lender shall be allocated to the Extraordinary
Expense Account to be held and disbursed in accordance with Section 9.8; and

      (ix) funds in an amount equal to the balance (if any) remaining on deposit in
the Cash Management Account after the foregoing withdrawals and allocations shall be
transferred to (A) during the Cash Management Period, the AFL Leasing Reserve
Account and (B) after the end of the Cash Management Period, and provided there is
no Event of Default, such funds shall be transferred to Borrower’s Account.

     (d) Notwithstanding anything to the contrary herein, Borrower acknowledges that Borrower is
responsible for monitoring the sufficiency of funds deposited in the Cash Management Account and
that Borrower is liable for any deficiency in available funds,

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irrespective of whether Borrower has received any account statement, notice or demand from
Lender or Lender’s servicer. If the amount on deposit in the Cash Management Account is
insufficient to make all of the withdrawals and allocations described in Section 10.3(c)(i) through
(vi) above, Borrower shall deposit such deficiency into the Cash Management Account within five (5)
days (provided that such five day period shall not constitute a grace period for any default or
Event of Default under this Agreement or any other Loan Document based on a failure to satisfy any
monetary obligation provided in any Loan Document).

     (e) If an Event of Default shall have occurred and be continuing, Borrower hereby irrevocably
authorizes Lender to make any and all withdrawals from the Lockbox Account and Cash Management
Account and transfers between any of the Reserve Accounts as Lender shall determine in Lender’s
sole and absolute discretion and Lender may use all funds contained in any such accounts for any
purpose, including but not limited to repayment of the Debt in such order, proportion and priority
as Lender may determine in its sole and absolute discretion. Lender’s right to withdraw and apply
funds as stated herein shall be in addition to all other rights and remedies provided to Lender
under this Agreement, the Note, the Mortgage and the other Loan Documents.

     Section 10.4 Security Interest

     (a) To secure the full and punctual payment of the Debt and performance of all obligations of
Borrower now or hereafter existing under this Agreement and the other Loan Documents, Borrower
hereby grants to Lender a first-priority perfected security interest in the Lockbox Account and
Cash Management Account, all interest, cash, checks, drafts, certificates and instruments, if any,
from time to time deposited or held therein, any and all amounts invested in Permitted Investments,
and all “proceeds” (as defined in the UCC as in effect in the state in which the Lockbox Account
and Cash Management Account are located or maintained) of any or all of the foregoing.
Furthermore, Borrower shall not, without obtaining the prior written consent of Lender, further
pledge, assign or grant any security interest in any of the foregoing or permit any Lien to attach
thereto or any levy to be made thereon or any UCC Financing Statements to be filed with respect
thereto. Borrower will maintain the security interest created by this Section 10.4(a) as a first
priority perfected security interest and will defend the right, title and interest of Lender in and
to the Lockbox Account and Cash Management Account against the claims and demands of all Persons
whomsoever.

     (b) Borrower authorizes Lender to file any financing statement or statements required by
Lender to establish or maintain the validity, perfection and priority of the security interest
granted herein in connection with the Lockbox Account and Cash Management Account. Borrower
agrees that at any time and from time to time, at the expense of Borrower, Borrower will promptly
and duly execute and deliver all further instruments and documents, and take all further action,
that may be necessary or desirable, or that Lender may reasonably request, in order to perfect and
protect any security interest granted or purported to be granted hereby (including, without
limitation, any security interest in and to any Permitted Investments) or to enable Lender to
exercise and enforce its rights and remedies hereunder.

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     (c) Upon the occurrence of an Event of Default, Lender may exercise any or all of its rights
and remedies as a secured party, pledgee and lienholder with respect to the Lockbox Account and
Cash Management Account. Without limitation of the foregoing, upon any Event of Default, Lender
may use the Lockbox Account and Cash Management Account for any of the following purposes: (A)
repayment of the Debt, including, but not limited to, principal prepayments and the prepayment
premium applicable to such full or partial prepayment (as applicable); (B) reimbursement of Lender
for all losses, fees, costs and expenses (including, without limitation, reasonable legal fees)
suffered or incurred by Lender as a result of such Event of Default; (C) payment of any amount
expended in exercising any or all rights and remedies available to Lender at law or in equity or
under this Agreement or under any of the other Loan Documents; (D) payment of any item as required
or permitted under this Agreement; or (E) any other purpose permitted by applicable law; provided,
however, that any such application of funds shall not cure or be deemed to cure any Event of
Default. Without limiting any other provisions hereof, each of the remedial actions described in
the immediately preceding sentence shall be deemed to be a commercially reasonable exercise of
Lender’s rights and remedies as a secured party with respect to the Lockbox Account and Cash
Management Account and shall not in any event be deemed to constitute a setoff or a foreclosure of
a statutory banker’s lien. Nothing in this Agreement shall obligate Lender to apply all or any
portion of the Lockbox Account or Cash Management Account to effect a cure of any Event of Default,
or to pay the Debt, or in any specific order of priority. The exercise of any or all of Lender’s
rights and remedies under this Agreement or under any of the other Loan Documents shall not in any
way prejudice or affect Lender’s right to initiate and complete a foreclosure under the Mortgage.

     (d) Definitions. Notwithstanding anything to the contrary contained herein, For
purposes of this Article 10 only, Business Day shall mean a day on which Lender and Lockbox Bank
are both open for the conduct of substantially all of their respective banking business at the
office in the city in which the Note is payable, with respect to Lender and at the office in the
city where the Lockbox Account is maintained, with respect to Lockbox Bank (in both instances,
excluding Saturdays and Sundays).

ARTICLE 11

EVENTS OF DEFAULT; REMEDIES

     Section 11.1 Event of Default

     The occurrence of any one or more of the following events shall constitute an “Event of
Default”:

     (a) if any portion of the Debt is not paid prior to the fifth (5th) day following the date the
same is due or if the entire Debt is not paid on or before the Maturity Date;

     (b) except as otherwise expressly provided in the Loan Documents, if any of the Taxes or Other
Charges are not paid when the same are due and payable, unless there is sufficient money in the Tax
and Insurance Reserve Account for payment of amounts then due

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and payable and Lender’s access to such money has not been constrained or restricted in any
manner;

     (c) if (i) the Policies are not kept in full force and effect, (ii) the Acord 28 (or similar)
certificate is not delivered to Lender in accordance with Section 8.1 or (iii) if certified copies
of the Policies are not delivered to Lender upon request, provided such copies are available;

     (d) if Borrower breaches any covenant with respect to itself or any SPE Component Entity (if
any) contained in Article 6 or any covenant contained in Article 7 hereof;

     (e) if any representation or warranty of, or with respect to, Borrower, Borrower Principal,
any SPE Component Entity, or any member, general partner, principal or beneficial owner of any of
the foregoing, made herein, in any other Loan Document, or in any certificate, report, financial
statement or other instrument or document furnished to Lender at the time of the closing of the
Loan or during the term of the Loan shall have been false or misleading in any material respect
when made;

     (f) if (i) Borrower, or any managing member or general partner of Borrower, Borrower
Principal, or any SPE Component Entity (if any) shall commence any case, proceeding or other action
(A) under any Creditors Rights Laws, seeking to have an order for relief entered with respect to
it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it or for
all or any substantial part of its assets, or Borrower, any managing member or general partner of
Borrower, Borrower Principal, or any SPE Component Entity (if any) shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced against Borrower, any managing
member or general partner of Borrower, Borrower Principal, or any SPE Component Entity (if any) any
case, proceeding or other action of a nature referred to in clause (i) above which (A) results in
the entry of an order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be
commenced against Borrower, any managing member or general partner of Borrower, Borrower Principal,
or any SPE Component Entity (if any) any case, proceeding or other action seeking issuance of a
warrant of attachment, execution, distraint or similar process against all or any substantial part
of its assets which results in the entry of any order for any such relief which shall not have been
vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry
thereof; or (iv) Borrower, any managing member or general partner of Borrower, Borrower Principal,
or any SPE Component Entity (if any) shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or
(iii) above; or (v) Borrower, any managing member or general partner of Borrower, Borrower
Principal, or any SPE Component Entity (if any) shall generally not, or shall be unable to, or
shall admit in writing its inability to, pay its debts as they become due;

     (g) if Borrower shall be in default beyond applicable notice and grace periods under any other
mortgage, deed of trust, deed to secure debt or other security agreement covering any part of the
Property, whether it be superior or junior in lien to the Mortgage;

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     (h) if the Property becomes subject to any mechanic’s, materialman’s or other Lien other than
a Lien for any Taxes or Other Charges not then due and payable and the Lien shall remain
undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days;

     (i) if any federal tax lien is filed against Borrower, any member or general partner of
Borrower, Borrower Principal, or any SPE Component Entity (if any) or the Property and same is not
discharged of record within thirty (30) days after same is filed;

     (j) if a judgment is filed against the Borrower in excess of $10,000 which is not vacated or
discharged within 30 days;

     (k) if any default occurs under any guaranty or indemnity executed in connection herewith and
such default continues after the expiration of applicable grace periods, if any;

     (l) if Borrower shall permit any event within its control to occur that would cause any REA to
terminate without notice or action by any party thereto or would entitle any party to terminate any
REA and the term thereof by giving notice to Borrower; or any REA shall be surrendered, terminated
or canceled for any reason or under any circumstance whatsoever except as provided for in such REA;
or any term of any REA shall be modified or supplemented without Lender’s consent; or Borrower
shall fail, within ten (10) Business Days after demand by Lender, to exercise its option to renew
or extend the term of any REA or shall fail or neglect to pursue diligently all actions necessary
to exercise such renewal rights pursuant to such REA except as provided for in such REA;

     (m) if Borrower shall continue to be in default under any other term, covenant or condition of
this Agreement or any of the Loan Documents for more than ten (10) days after notice from Lender in
the case of any default which can be cured by the payment of a sum of money or for thirty (30) days
after notice from Lender in the case of any other default, provided that if such default cannot
reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure
such default within such thirty (30) day period and thereafter diligently and expeditiously
proceeds to cure the same, such thirty (30) day period shall be extended for so long as it shall
require Borrower in the exercise of due diligence to cure such default, it being agreed that no
such extension shall be for a period in excess of sixty (60) days;

     (n) if Borrower fails to protect or enforce its rights under the Tenant Letter of Credit or to
deliver to the Lender the proceeds from or any payments on the Tenant Letter of Credit in
accordance with Section 9.10 hereof;

     (o) if Borrower fails to provide the Lender with an acceptable letter of credit in the amount
of $400,000.00 that satisfies the Lender’s Letter of Credit Requirements or cash in the amount of
$400,000.00 as required by Section 9.2;

     (p) if Borrower fails to provide the Lender with an acceptable letter of credit in the amount
of $650,000.00 that satisfies the Lender’s Letter of Credit Requirements in the amount of
$650,000.00 to the extent and as required by Section 9.3(e); or

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     (q) if the balance of the AFL Leasing Reserve Account is not at least $650,000.00 by the
expiration or early termination of the AFL Lease.

     Section 11.2 Remedies

     (a) Upon the occurrence of an Event of Default (other than an Event of Default described in
Section 11.1(f) above) and at any time thereafter Lender may, in addition to any other rights or
remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in
equity, take such action, without notice or demand (except as expressly provided otherwise herein),
that Lender deems advisable to protect and enforce its rights against Borrower and in the Property,
including, without limitation, declaring the Debt to be immediately due and payable, and Lender may
enforce or avail itself of any or all rights or remedies provided in the Loan Documents against
Borrower and the Property, including, without limitation, all rights or remedies available at law
or in equity; and upon any Event of Default described in Section 11.1(f) above, the Debt and all
other obligations of Borrower hereunder and under the other Loan Documents shall immediately and
automatically become due and payable, without notice or demand, and Borrower hereby expressly
waives any such notice or demand, anything contained herein or in any other Loan Document to the
contrary notwithstanding.

     (b) Upon the occurrence of an Event of Default, all or any one or more of the rights, powers,
privileges and other remedies available to Lender against Borrower under this Agreement or any of
the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in
equity may be exercised by Lender at any time and from time to time, whether or not all or any of
the Debt shall be declared due and payable, and whether or not Lender shall have commenced any
foreclosure proceeding or other action for the enforcement of its rights and remedies under any of
the Loan Documents with respect to the Property. Any such actions taken by Lender shall be
cumulative and concurrent and may be pursued independently, singularly, successively, together or
otherwise, at such time and in such order as Lender may determine in its sole discretion, to the
fullest extent permitted by law, without impairing or otherwise affecting the other rights and
remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan
Documents.

ARTICLE 12

ENVIRONMENTAL PROVISIONS

     Section 12.1 Environmental Representations and Warranties

     Borrower represents and warrants, based upon an Environmental Report of the Property and
information that Borrower knows or should reasonably have known, that: (a) there are no Hazardous
Materials or underground storage tanks in, on, or under the Property, except those that are both
(i) in compliance with Environmental Laws and with permits issued pursuant thereto (if such permits
are required), if any, and (ii) either (A) in the case of Hazardous

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Materials, in amounts not in excess of that necessary to operate the Property for the purposes
set forth herein or (B) fully disclosed to and approved by Lender in writing pursuant to an
Environmental Report; (b) there are no past, present or threatened Releases of Hazardous Materials
in violation of any Environmental Law or which would require remediation by a Governmental
Authority in, on, under or from the Property except as described in the Environmental Report; (c)
there is no threat of any Release of Hazardous Materials migrating to the Property except as
described in the Environmental Report; (d) there is no past or present non-compliance with
Environmental Laws, or with permits issued pursuant thereto, in connection with the Property except
as described in the Environmental Report; (e) Borrower does not know of, and has not received, any
written or oral notice or other communication from any Person relating to Hazardous Materials in,
on, under or from the Property; (f) the Property is free of Mold; and (g) Borrower has truthfully
and fully provided to Lender, in writing, any and all information relating to environmental
conditions in, on, under or from the Property known to Borrower or contained in Borrower’s files
and records, including but not limited to any reports relating to Hazardous Materials in, on, under
or migrating to or from the Property and/or to the environmental condition of or the presence of
Mold at the Property.

     Section 12.2 Environmental Covenants

     Borrower covenants and agrees that so long as Borrower owns, manages, is in possession of, or
otherwise controls the operation of the Property: (a) all uses and operations on or of the
Property, whether by Borrower or any other Person, shall be in compliance with all Environmental
Laws and permits issued pursuant thereto; (b) there shall be no Releases of Hazardous Materials in,
on, under or from the Property; (c) there shall be no Hazardous Materials in, on, or under the
Property, except those that are both (i) in compliance with all Environmental Laws and with permits
issued pursuant thereto, if and to the extent required, and (ii) (A) in amounts not in excess of
that necessary to operate the Property for the purposes set forth herein or (B) fully disclosed to
and approved by Lender in writing; or (C) with respect to Mold, not in a condition, location, or of
a type which may pose a risk to human health or safety or the environment or which may result in
damage to or would adversely affect or impair the value or marketability of the Property; (d)
Borrower shall keep the Property free and clear of all Environmental Liens; (e) Borrower shall, at
its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Section
12.4 below, including but not limited to providing all relevant information and making
knowledgeable persons available for interviews; (f) Borrower shall, at its sole cost and expense,
perform any environmental site assessment or other investigation of environmental conditions in
connection with the Property, pursuant to any reasonable written request of Lender, upon Lender’s
reasonable belief that the Property is not in full compliance with all Environmental Laws, and
share with Lender the reports and other results thereof, and Lender and other Indemnified Parties
shall be entitled to rely on such reports and other results thereof; (g) Borrower shall keep the
Property free of Mold; (h) Borrower shall, at its sole cost and expense, comply with all reasonable
written requests of Lender to (i) reasonably effectuate remediation of any Hazardous Materials in,
on, under or from the Property; and (ii) comply with any Environmental Law; (i) Borrower shall not
allow any tenant or other user of the Property to violate any Environmental Law; and (j) Borrower
shall immediately notify Lender in writing after it has become aware of (A) any presence or Release
or threatened Release of Hazardous Materials in, on, under, from or migrating towards the Property;
(B) any

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non-compliance with any Environmental Laws related in any way to the Property; (C) any actual
or potential Environmental Lien against the Property; (D) any required or proposed remediation of
environmental conditions relating to the Property; and (E) any written or oral notice or other
communication of which Borrower becomes aware from any source whatsoever (including but not limited
to a Governmental Authority) relating in any way to Hazardous Materials. Any failure of Borrower
to perform its obligations pursuant to this Section 12.2 shall constitute bad faith waste with
respect to the Property.

     Section 12.3 Lender’s Rights

     Lender and any other Person designated by Lender, including but not limited to any
representative of a Governmental Authority, and any environmental consultant, and any receiver
appointed by any court of competent jurisdiction, shall have the right, but not the obligation, to
enter upon the Property at all reasonable times to assess any and all aspects of the environmental
condition of the Property and its use, including but not limited to conducting any environmental
assessment or audit (the scope of which shall be determined in Lender’s sole discretion) and taking
samples of soil, groundwater or other water, air, or building materials, and conducting other
invasive testing. Borrower shall cooperate with and provide access to Lender and any such person
or entity designated by Lender.

     Section 12.4 Operations and Maintenance

     If recommended by the Environmental Report or any other environmental assessment or audit of
the Property, Borrower shall establish and comply with an operations and maintenance program with
respect to the Property, in form and substance reasonably acceptable to Lender, prepared by an
environmental consultant reasonably acceptable to Lender, which program shall address any
asbestos-containing material or lead based paint or Mold that may now or in the future be detected
at or on the Property. Without limiting the generality of the preceding sentence, Lender may
require (a) periodic notices or reports to Lender in form, substance and at such intervals as
Lender may specify, (b) an amendment to such operations and maintenance program to address changing
circumstances, laws or other matters, (c) at Borrower’s sole expense, supplemental examination of
the Property by consultants specified by Lender, (d) access to the Property by Lender, its agents
or servicer, to review and assess the environmental condition of the Property and Borrower’s
compliance with any operations and maintenance program, and (e) variation of the operations and
maintenance program in response to the reports provided by any such consultants.

     Section 12.5 Environmental Definitions

     “Environmental Law” means any present and future federal, state and local laws, statutes,
ordinances, rules, regulations, standards, policies and other government directives or
requirements, as well as common law, including but not limited to the Comprehensive Environmental
Response, Compensation and Liability Act and the Resource Conservation and Recovery Act, that apply
to Borrower or the Property and relate to Hazardous Materials or protection of human health or the
environment. “Environmental Liens” means all Liens and other encumbrances imposed pursuant to any
Environmental Law, whether due to any act or

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omission
of Borrower or any other Person. “Environmental Report” means the written reports
resulting from the environmental site assessments of the Property delivered to Lender in connection
with the Loan. “Hazardous Materials” shall mean petroleum and petroleum products and compounds
containing them, including gasoline, diesel fuel and oil; explosives, flammable materials;
radioactive materials; polychlorinated biphenyls and compounds containing them; lead and lead-based
paint; asbestos or asbestos-containing materials in any form that is or could become friable;
underground or above-ground storage tanks, whether empty or containing any substance; any substance
the presence of which on the Property is prohibited by any federal, state or local authority; any
substance that requires special handling; and any other material or substance now or in the future
defined as a “hazardous substance,” “hazardous material”, “hazardous waste”, “toxic substance”,
“toxic pollutant”, “contaminant”, or “pollutant” within the meaning of any Environmental Law.
“Mold” shall mean any mold, fungi, bacterial or microbial matter present at or in the Property,
including, without limitation, building materials which is in a condition, location or a type which
may pose a risk to human health or safety or the environment, may result in damage to or would
adversely affect or impair the value or marketability of the Property. “Release” of any Hazardous
Materials includes but is not limited to any release, deposit, discharge, emission, leaking,
spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing
or other movement of Hazardous Materials.

     Section 12.6 Indemnification

     (a) Borrower and Borrower Principal covenant and agree at their sole cost and expense, to
protect, defend, indemnify, release and hold Indemnified Parties harmless from and against any and
all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or
indirectly arising out of or in any way relating to any one or more of the following: (i) any
presence of any Hazardous Materials in, on, above, or under the Property; (ii) any past, present or
threatened Release of Hazardous Materials in, on, above, under or from the Property; (iii) any
activity by Borrower, any Person affiliated with Borrower, and any Tenant or other user of the
Property in connection with any actual, proposed or threatened use, treatment, storage, holding,
existence, disposition or other Release, generation, production, manufacturing, processing,
refining, control, management, abatement, removal, handling, transfer or transportation to or from
the Property of any Hazardous Materials at any time located in, under, on or above the Property or
any actual or proposed remediation of any Hazardous Materials at any time located in, under, on or
above the Property, whether or not such remediation is voluntary or pursuant to court or
administrative order, including but not limited to any removal, remedial or corrective action; (iv)
any past, present or threatened non-compliance or violations of any Environmental Laws (or permits
issued pursuant to any Environmental Law) in connection with the Property or operations thereon,
including but not limited to any failure by Borrower, any person or entity affiliated with
Borrower, and any tenant or other user of the Property to comply with any order of any Governmental
Authority in connection with any Environmental Laws; (v) the imposition, recording or filing or the
threatened imposition, recording or filing of any Environmental Lien encumbering the Property; (vi)
any acts of Borrower, any person or entity affiliated with Borrower, and any tenant or other user
of the Property in (A) arranging for disposal or treatment, or arranging with a transporter for
transport for disposal or treatment, of Hazardous Materials at any facility or incineration vessel
containing

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such or similar Hazardous Materials or (B) accepting any Hazardous Materials for transport to
disposal or treatment facilities, incineration vessels or sites from which there is a Release, or a
threatened Release of any Hazardous Substance which causes the incurrence of costs for remediation;
and (vii) any misrepresentation or inaccuracy in any representation or warranty or material breach
or failure to perform any covenants or other obligations pursuant to this Agreement relating to
environmental matters.

     (b) Upon written request by any Indemnified Party, Borrower and Borrower Principal shall
defend same (if requested by any Indemnified Party, in the name of the Indemnified Party) by
attorneys and other professionals reasonably approved by the Indemnified Parties. Notwithstanding
the foregoing, any Indemnified Parties may, in their sole discretion, engage their own attorneys
and other professionals to defend or assist them, and, at the option of Indemnified Parties, their
attorneys shall control the resolution of any claim or proceeding. Upon demand, Borrower and
Borrower Principal shall pay or, in the sole discretion of the Indemnified Parties, reimburse, the
Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers,
environmental consultants, laboratories and other professionals in connection therewith.

     (c) Notwithstanding the foregoing, neither Borrower nor Borrower Principal shall have any
liability for any Losses imposed upon or incurred by or asserted against any Indemnified Parties
and described in subsection (a) above to the extent that Borrower and/or Borrower Principal can
conclusively prove both that such Losses were caused solely by actions, conditions or events that
occurred after the date that Lender (or any purchaser at a foreclosure sale) actually acquired
title to the Property and that such Losses were not caused by the direct or indirect actions of
Borrower, Borrower Principal, or any partner, member, principal, officer, director, trustee or
manager of Borrower or Borrower Principal or any employee, agent, contractor or Affiliate of
Borrower or Borrower Principal. The obligations and liabilities of Borrower and Borrower Principal
under this Section 12.6 shall fully survive indefinitely notwithstanding any termination,
satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale, or
delivery of a deed in lieu of foreclosure of the Mortgage, except that, upon payment of full of the
Loan, Borrower and Borrower Principal shall be released from liability under this Section 12.6 upon
delivery to the Lender of an environmental report in form and substance and from an engineer
acceptable to Lender and dated no earlier than the date on which the Loan is paid in full.

ARTICLE 13

SECONDARY MARKET

     Section 13.1 Transfer of Loan

     Lender may, at any time, sell, transfer or assign the Loan Documents, or grant participations
therein (“Participations”) or syndicate the Loan (“Syndication”) or issue mortgage pass-through
certificates or other securities evidencing a beneficial interest in a rated

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or unrated public offering or private placement (“Securities”) (a Syndication or the issuance
of Participations and/or Securities, a “Securitization”).

     Section 13.2 Delegation of Servicing

     At the option of Lender, the Loan may be serviced by a servicer/trustee selected by Lender and
Lender may delegate all or any portion of its responsibilities under this Agreement and the other
Loan Documents to such servicer/trustee pursuant to a servicing agreement between Lender and such
servicer/trustee.

     Section 13.3 Dissemination of Information

     Lender may forward to each purchaser, transferee, assignee, or servicer of, and each
participant, or investor in, the Loan, or any Participations and/or Securities or any of their
respective successors (collectively, the “Investor”) or any Rating Agency rating the Loan, or any
Participations and/or Securities, each prospective Investor, and any organization maintaining
databases on the underwriting and performance of commercial mortgage loans, all documents and
information which Lender now has or may hereafter acquire relating to the Debt and to Borrower, any
managing member or general partner thereof, Borrower Principal, any SPE Component Entity (if any)
and the Property, including financial statements, whether furnished by Borrower or otherwise, as
Lender determines necessary or desirable.

     Section 13.4 Cooperation

     Borrower and Borrower Principal agree to cooperate with Lender in connection with any sale or
transfer of the Loan or any Participation and/or Securities created pursuant to this Article 13,
including, without limitation, (a) the delivery of an estoppel certificate required in accordance
with Section 5.12(a) and such other documents as may be reasonably requested by Lender, (b) the
execution of such amendments to the Loan Documents as may be requested by the holder of the Note or
the Rating Agencies or otherwise to effect the Securitization including, without limitation,
bifurcation of the Loan into two or more separate notes; provided, however, that Borrower shall not
be required to modify or amend any Loan Document if such modification or amendment would (i) change
the interest rate, the stated maturity or the amortization of principal set forth in the Note,
except in connection with a bifurcation of the Loan which may result in varying fixed interest
rates and amortization schedules, but which shall have the same initial weighted average coupon of
the original Note, or (ii) in the reasonable judgment of Borrower, modify or amend any other
material economic term of the Loan, or (iii) in the reasonable judgment of Borrower, materially
increase Borrower’s obligations and liabilities under the Loan Documents, and (c) make changes to
the organizational documents of Borrower and its principals and/or use its best efforts to cause
changes to the legal opinions delivered by Borrower in connection with the Loan, provided, that
such changes shall not result in a material adverse economic effect to Borrower. Borrower shall
also furnish and Borrower and Borrower Principal consent to Lender furnishing to such Investors or
such prospective Investors or such Rating Agency any and all information concerning the Property,
the Leases, the financial condition of Borrower or Borrower Principal as may be requested by
Lender, any Investor, any

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prospective Investor or any Rating Agency in connection with any sale or transfer of the Loan
or any Participations or Securities.

ARTICLE 14

INDEMNIFICATIONS

     Section 14.1 General Indemnification

     Borrower shall indemnify, defend and hold harmless the Indemnified Parties from and against
any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and
directly or indirectly arising out of or in any way relating to any one or more of the following:
(a) any accident, injury to or death of persons or loss of or damage to property occurring in, on
or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property
or adjacent parking areas, streets or ways; (b) any use, nonuse or condition in, on or about the
Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (c) performance of any labor or services or the furnishing of any
materials or other property in respect of the Property or any part thereof; (d) any failure of the
Property to be in compliance with any applicable Legal Requirements; (e) any and all claims and
demands whatsoever which may be asserted against Lender by reason of any alleged obligations or
undertakings on its part to perform or discharge any of the terms, covenants, or agreements
contained in any Lease; (f) the holding or investing of the Reserve Accounts or the performance of
the Required Work, Additional Required Repairs or Additional Replacements, or (g) the payment of
any commission, charge or brokerage fee to anyone which may be payable in connection with the
funding of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that Borrower
shall not have any obligation to Lender hereunder to the extent that such Indemnified Liabilities
arise from the gross negligence, illegal acts, fraud or willful misconduct of Lender. To the
extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding
sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the
maximum portion that it is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Lender.

     Section 14.2 Mortgage and Intangible Tax Indemnification

     Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold
harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or
asserted against any Indemnified Parties and directly or indirectly arising out of or in any way
relating to any tax on the making and/or recording of the Mortgage, the Note or any of the other
Loan Documents, but excluding any income, franchise or other similar taxes.

     Section 14.3 ERISA Indemnification

     Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold
harmless the Indemnified Parties from and against any and all Losses (including, without

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limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and
settlement of Losses incurred in correcting any prohibited transaction or in the sale of a
prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that
may be required, in Lender’s sole discretion) that Lender may incur, directly or indirectly, as a
result of a default under Section 4.9 or Section 5.18 of this Agreement.

     Section 14.4 Survival

     The obligations and liabilities of Borrower and Borrower Principal under this Article 14 shall
fully survive for a period of two (2) years after payment of the Debt in full, notwithstanding any
termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of
sale, or delivery of a deed in lieu of foreclosure of the Mortgage; provided that, notwithstanding
the foregoing, the indemnification obligations under Section 12.6 hereof shall survive
indefinitely.

ARTICLE 15

EXCULPATION

     Section 15.1 Exculpation

     (a) Except as otherwise provided herein or in the other Loan Documents, Lender shall not
enforce the liability and obligation of Borrower or Borrower Principal, as applicable, to perform
and observe the obligations contained herein or in the other Loan Documents by any action or
proceeding wherein a money judgment shall be sought against Borrower or Borrower Principal, except
that Lender may bring a foreclosure action, action for specific performance or other appropriate
action or proceeding to enable Lender to enforce and realize upon this Agreement, the Note, the
Mortgage and the other Loan Documents, and the interest in the Property, the Rents and any other
collateral given to Lender created by this Agreement, the Note, the Mortgage and the other Loan
Documents; provided, however, that any judgment in any such action or proceeding shall be
enforceable against Borrower or Borrower Principal, as applicable, only to the extent of Borrower’s
or Borrower Principal’s interest in the Property, in the Rents and in any other collateral given to
Lender. Lender, by accepting this Agreement, the Note, the Mortgage and the other Loan Documents,
agrees that it shall not, except as otherwise provided in this Section 15.1, sue for, seek or
demand any deficiency judgment against Borrower or Borrower Principal in any such action or
proceeding, under or by reason of or under or in connection with this Agreement, the Note, the
Mortgage or the other Loan Documents. The provisions of this Section 15.1 shall not, however, (i)
constitute a waiver, release or impairment of any obligation evidenced or secured by this
Agreement, the Note, the Mortgage or the other Loan Documents; (ii) impair the right of Lender to
name Borrower or Borrower Principal as a party defendant in any action or suit for judicial
foreclosure and sale under this Agreement and the Mortgage; (iii) affect the validity or
enforceability of any indemnity (subject to the limitations set forth herein) (including, without
limitation, those contained in Section 12.6 and Article 14 of this Agreement), guaranty, master
lease or similar instrument made in connection with this Agreement, the Note, the Mortgage and the
other Loan Documents; (iv) impair the right

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of Lender to obtain the appointment of a receiver; (v) impair the enforcement of the
assignment of leases provisions contained in the Mortgage; or (vi) impair the right of Lender to
obtain a deficiency judgment or other judgment on the Note against Borrower or Borrower Principal
if necessary to obtain any Insurance Proceeds or Awards to which Lender would otherwise be entitled
under this Agreement; provided however, Lender shall only enforce such judgment to the extent of
the Insurance Proceeds and/or Awards.

     (b) Notwithstanding the provisions of this Section 15.1 to the contrary, Borrower and Borrower
Principal shall be personally liable to Lender on a joint and several basis for Losses due to:

      (i) fraud or intentional misrepresentation by Borrower, Borrower Principal or any other
Affiliate of Borrower or Borrower Principal in connection with the execution and the
delivery of this Agreement, the Note, the Mortgage, any of the other Loan Documents, or any
certificate, report, financial statement or other instrument or document furnished to Lender
at the time of the closing of the Loan or during the term of the Loan;

      (ii) Borrower’s misapplication or misappropriation of Rents received by Borrower after
the occurrence of an Event of Default;

      (iii) Borrower’s misapplication or misappropriation of tenant security deposits or
Rents collected in advance;

      (iv) the misapplication or the misappropriation of Insurance Proceeds or Awards by
Borrower or Borrower Principal or any principal, Affiliate, member or general partner
thereof;

      (v) Borrower’s failure to pay Taxes, Other Charges (except to the extent that (A) sums
sufficient to pay such amounts have been deposited in escrow with Lender pursuant to the
terms hereof and there exists no impediment to Lender’s utilization thereof or (B) there is
insufficient cash flow from the operation of the Property), charges for labor or materials
or other charges that can create liens on the Property beyond any applicable notice and cure
periods specified herein;

      (vi) Borrower’s failure to return or to reimburse Lender for all Personal Property
taken from the Property by or on behalf of Borrower and not replaced with Personal Property
of the same utility and of the same or greater value;

      (vii) any act of actual waste or arson by Borrower, any principal, Affiliate, member or
general partner thereof or by Borrower Principal, any principal, Affiliate, member or
general partner thereof;

      (viii) Borrower’s failure following any Event of Default to deliver to Lender upon
demand all Rents and books and records relating to the Property;

      (ix) Borrower’s gross negligence or willful misconduct;

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      (x) Borrower’s failure to protect or enforce its rights under the Tenant Letter of
Credit or to deliver to the Lender the proceeds from or any payments on the Tenant Letter of
Credit in accordance with Section 9.10 hereof;

      (xi) Borrower’s failure to provide the Lender with an acceptable letter of credit in
the amount of $400,000.00 that satisfies the Lender’s Letter of Credit Requirements or cash
in the amount of $400,000.00 as required by Section 9.2;

      (xii) Borrower’s failure to provide the Lender with an acceptable letter of credit in
the amount of $650,000.00 that satisfies the Lender’s Letter of Credit Requirements in the
amount of $650,000.00 to the extent and as required by Section 9.3(e); or

      (xiii) the failure of the balance of the AFL Leasing Reserve Account to be at least
$650,000.00 by the expiration or early termination of the AFL Lease.

     (c) Notwithstanding the foregoing, the agreement of Lender not to pursue recourse liability as
set forth in subsection (a) above SHALL BECOME NULL AND VOID and shall be of no further force and
effect and the Debt shall be fully recourse to Borrower and Borrower Principal on a joint and
several basis in the event (i) of a breach by Borrower, Borrower Principal or any SPE Component
Entity (if any) of any of the covenants set forth in Article 6 hereof, to the extent that such
breach is (A) material and (B) is not cured within fifteen (15) days of the earlier to occur of
notice from Lender or Borrower’s knowledge of such breach, (ii) of a breach of any of the covenants
set forth in Article 7 hereof, (iii) the Property or any part thereof shall become an asset in a
voluntary bankruptcy or insolvency proceeding of Borrower; (iv) Borrower, Borrower Principal or any
Affiliate, officer, director, or representative which controls, directly or indirectly, Borrower or
Borrower Principal files, or joins in the filing of, an involuntary petition against Borrower under
any Creditors Rights Laws, or solicits or causes to be solicited petitioning creditors for any
involuntary petition against Borrower from any Person; (v) Borrower files an answer consenting to
or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other
Person under any Creditors Rights Laws, or solicits or causes to be solicited petitioning creditors
for any involuntary petition from any Person; or (vi) any Affiliate, officer, director, or
representative which controls Borrower consents to or acquiesces in or joins in an application for
the appointment of a custodian, receiver, trustee, or examiner for Borrower or any portion of the
Property.

     (d) Nothing herein shall be deemed to be a waiver of any right which Lender may have under
Section 506(a), 506(b), 1111(b) or any other provision of the U.S. Bankruptcy Code to file a claim
for the full amount of the indebtedness secured by the Mortgage or to require that all collateral
shall continue to secure all of the indebtedness owing to Lender in accordance with this Agreement,
the Note, the Mortgage or the other Loan Documents.

     (e) Subject to the terms of Section 12.6, upon payment in full of the Loan, Borrower Principal
shall be relieved of its obligations under this Article 15.

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ARTICLE 16

NOTICES

     Section 16.1 Notices

     All notices, consents, approvals and requests required or permitted hereunder or under any
other Loan Document shall be given in writing and shall be effective for all purposes if hand
delivered or sent by (a) certified or registered United States mail, postage prepaid, return
receipt requested, (b) expedited prepaid overnight delivery service, either commercial or United
States Postal Service, with proof of attempted delivery, or by (c) telecopier (with answer back
acknowledged provided an additional notice is given pursuant to subsection (b) above), addressed as
follows (or at such other address and Person as shall be designated from time to time by any party
hereto, as the case may be, in a written notice to the other parties hereto in the manner provided
for in this Section):

	 	 	 
	If to Lender:

	 	Bank of America, N.A.
	 

	 	c/o LJ Melody and Company
	 

	 	GEMSA Loan Services, LP
	 

	 	1500 City West Blvd., Suite 200
	 

	 	Houston, TX 77042
	 

	 	Telephone No.: (800) 456-1443
	 

	 	Facsimile No.: (713) 458-7502
	 
	 	 
	With a copy to:

	 	Moore & Van Allen PLLC
	 

	 	100 North Tryon Street, 47th Floor
	 

	 	Charlotte, NC 28202
	 

	 	Attention: Edward K. Oden, Esq.
	 

	 	Telephone No.: (704) 331-1000
	 

	 	Facsimile No.: (704) 331-1159
	 
	 	 
	If to Borrower:

	 	AFL05 Duncan SC LLC
	 

	 	c/o Gladstone Commercial Corporation
	 

	 	1521 Westbranch Drive, Suite 200
	 

	 	McLean, VA 22102
	 

	 	Attention: Mr. Matthew Tucker
	 

	 	Telephone No.: (703) 287-5830
	 

	 	Facsimile No.: (703) 287-5801
	 
	 	 
	With a copy to:

	 	Winston & Strawn LLP
	 

	 	1700 K Street, N.W.
	 

	 	Washington, D.C. 20006
	 

	 	Attention: Richard F. Williamson, Esquire
	 

	 	Telephone No.: (202) 282-5000
	 

	 	Facsimile No.: (202) 282-5100

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	If to Borrower:

	 	Little Arch Charlotte NC LLC
	 

	 	c/o Gladstone Commercial Corporation
	 

	 	1521 Westbranch Drive, Suite 200
	 

	 	McLean, VA 22102
	 

	 	Attention: Mr. Matthew Tucker
	 

	 	Telephone No.: (703) 287-5830
	 

	 	Facsimile No.: (703) 287-5801
	 
	 	 
	With a copy to:

	 	Winston & Strawn LLP
	 

	 	1700 K Street, N.W.
	 

	 	Washington, D.C. 20006
	 

	 	Attention: Richard F. Williamson, Esquire
	 

	 	Telephone No.: (202) 282-5000
	 

	 	Facsimile No.: (202) 282-5100
	 
	 	 
	If to Borrower
	 	 
	Principal:

	 	Gladstone Commercial Corporation
	 

	 	1521 Westbranch Drive, Suite 200
	 

	 	McLean, VA 22102
	 

	 	Attention: Mr. Matthew Tucker
	 

	 	Telephone No.: (703) 287-5830
	 

	 	Facsimile No.: (703) 287-5801
	 
	 	 
	With a copy to:

	 	Winston & Strawn LLP
	 

	 	1700 K Street, N.W.
	 

	 	Washington, D.C. 20006
	 

	 	Attention: Richard F. Williamson, Esquire
	 

	 	Telephone No.: (202) 282-5000
	 

	 	Facsimile No.: (202) 282-5100

A notice shall be deemed to have been given: in the case of hand delivery, at the time of
delivery; in the case of registered or certified mail, when delivered or the first attempted
delivery on a Business Day; or in the case of expedited prepaid delivery and telecopy, upon the
first attempted delivery on a Business Day.

ARTICLE 17

FURTHER ASSURANCES

     Section 17.1 Replacement Documents

     Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or
mutilation of the Note or any other Loan Document which is not of public record: (i) with respect
to any Loan Document other than the Note, Borrower will issue, in lieu thereof, a replacement of
such other Loan Document, dated the date of such lost, stolen, destroyed or

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mutilated Loan Document in the same principal amount thereof and otherwise of like tenor and
(ii) with respect to the Note, (a) Borrower will execute a reaffirmation of the Debt as evidenced
by such Note acknowledging that Lender has informed Borrower that the Note was lost, stolen
destroyed or mutilated and that such Debt continues to be an obligation and liability of the
Borrower as set forth in the Note, a copy of which shall be attached to such reaffirmation and (b)
if requested by Lender, Borrower will execute a replacement note and Lender or Lender’s custodian
(at Lender’s option) shall provide to Borrower Lender’s (or Lender’s custodian’s) then standard
form of lost note affidavit and indemnity, which such form shall be reasonably acceptable to
Borrower.

     Section 17.2 Recording of Mortgage, etc

     Borrower forthwith upon the execution and delivery of the Mortgage and thereafter, from time
to time, will cause the Mortgage and any of the other Loan Documents creating a lien or security
interest or evidencing the lien hereof upon the Property and each instrument of further assurance
to be filed, registered or recorded in such manner and in such places as may be required by any
present or future law in order to publish notice of and fully to protect and perfect the lien or
security interest hereof upon, and the interest of Lender in, the Property. Borrower will pay all
taxes, filing, registration or recording fees, and all expenses incident to the preparation,
execution, acknowledgment and/or recording of the Note, the Mortgage, the other Loan Documents, any
note, deed of trust or mortgage supplemental hereto, any security instrument with respect to the
Property and any instrument of further assurance, and any modification or amendment of the
foregoing documents, and all federal, state, county and municipal taxes, duties, imposts,
assessments and charges arising out of or in connection with the execution and delivery of the
Mortgage, any deed of trust or mortgage supplemental hereto, any security instrument with respect
to the Property or any instrument of further assurance, and any modification or amendment of the
foregoing documents, except where prohibited by law so to do.

     Section 17.3 Further Acts, etc

     Borrower will, at the cost of Borrower, and without expense to Lender, do, execute,
acknowledge and deliver all and every further acts, deeds, conveyances, deeds of trust, mortgages,
assignments, security agreements, control agreements, notices of assignments, transfers and
assurances as Lender shall, from time to time, reasonably require, for the better assuring,
conveying, assigning, transferring, and confirming unto Lender the property and rights hereby
mortgaged, deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and
transferred or intended now or hereafter so to be, or which Borrower may be or may hereafter become
bound to convey or assign to Lender, or for carrying out the intention or facilitating the
performance of the terms of this Agreement or for filing, registering or recording the Mortgage, or
for complying with all Legal Requirements. Borrower, on demand, will execute and deliver, and in
the event it shall fail to so execute and deliver, hereby authorizes Lender to execute in the name
of Borrower or without the signature of Borrower to the extent Lender may lawfully do so, one or
more financing statements and financing statement amendments to evidence more effectively, perfect
and maintain the priority of the security interest of Lender in the Property. Borrower grants to
Lender an irrevocable power of attorney

93

 

coupled with an interest for the purpose of exercising and perfecting any and all rights and
remedies available to Lender at law and in equity, including without limitation, such rights and
remedies available to Lender pursuant to this Section 17.3.

     Section 17.4 Changes in Tax, Debt, Credit and Documentary Stamp Laws

     (a) If any law is enacted or adopted or amended after the date of this Agreement which deducts
the Debt from the value of the Property for the purpose of taxation or which imposes a tax, either
directly or indirectly, on the Debt or Lender’s interest in the Property, Borrower will pay the
tax, with interest and penalties thereon, if any. If Lender is advised by counsel chosen by it
that the payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or
provide the basis for a defense of usury then Lender shall have the option by written notice of not
less than one hundred twenty (120) days to declare the Debt immediately due and payable.

     (b) Borrower will not claim or demand or be entitled to any credit or credits on account of
the Debt for any part of the Taxes or Other Charges assessed against the Property, or any part
thereof, and no deduction shall otherwise be made or claimed from the assessed value of the
Property, or any part thereof, for real estate tax purposes by reason of the Mortgage or the Debt.
If such claim, credit or deduction shall be required by law, Lender shall have the option, by
written notice of not less than one hundred twenty (120) days, to declare the Debt immediately due
and payable.

     If at any time the United States of America, any State thereof or any subdivision of any such
State shall require revenue or other stamps to be affixed to the Note, the Mortgage, or any of the
other Loan Documents or impose any other tax or charge on the same, Borrower will pay for the same,
with interest and penalties thereon, if any.

     Section 17.5 Expenses

     Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon
receipt of written notice from Lender for all reasonable costs and expenses (including reasonable,
actual attorneys’ fees and disbursements and the allocated costs of internal legal services and all
actual disbursements of internal counsel) reasonably incurred by Lender in accordance with this
Agreement in connection with (a) the preparation, negotiation, execution and delivery of this
Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby
and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without
limitation any opinions requested by Lender as to any legal matters arising under this Agreement or
the other Loan Documents with respect to the Property); (b) Borrower’s ongoing performance of and
compliance with Borrower’s respective agreements and covenants contained in this Agreement and the
other Loan Documents on its part to be performed or complied with after the Closing Date,
including, without limitation, confirming compliance with environmental and insurance requirements;
(c) following a request by Borrower, Lender’s ongoing performance and compliance with all
agreements and conditions contained in this Agreement and the other Loan Documents on its part to
be performed or complied with after the Closing Date; (d) the negotiation, preparation, execution,
delivery and

94

 

administration of any consents, amendments, waivers or other modifications to this Agreement
and the other Loan Documents and any other documents or matters requested by Lender; (e) securing
Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (f) the
filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel
for providing to Lender all required legal opinions, and other similar expenses incurred in
creating and perfecting the Lien in favor of Lender pursuant to this Agreement and the other Loan
Documents; (g) enforcing or preserving any rights, in response to third party claims or the
prosecuting or defending of any action or proceeding or other litigation, in each case against,
under or affecting Borrower, this Agreement, the other Loan Documents, the Property, or any other
security given for the Loan; and (h) enforcing any obligations of or collecting any payments due
from Borrower under this Agreement, the other Loan Documents or with respect to the Property or in
connection with any refinancing or restructuring of the credit arrangements provided under this
Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided,
however, that Borrower shall not be liable for the payment of any such costs and expenses to the
extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct
of Lender.

     Section 17.6 Cost of Enforcement

     In the event (a) that the Mortgage is foreclosed in whole or in part, (b) of the bankruptcy,
insolvency, rehabilitation or other similar proceeding in respect of Borrower or any of its
constituent Persons or an assignment by Borrower or any of its constituent Persons for the benefit
of its creditors, or (c) Lender exercises any of its other remedies under this Agreement or any of
the other Loan Documents, Borrower shall be chargeable with and agrees to pay all costs of
collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in
connection therewith and in connection with any appellate proceeding or post-judgment action
involved therein, together with all required service or use taxes.

ARTICLE 18

WAIVERS

     Section 18.1 Remedies Cumulative; Waivers

     The rights, powers and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against Borrower or Borrower
Principal pursuant to this Agreement or the other Loan Documents, or existing at law or in equity
or otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or
otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No
delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall
impair any such remedy, right or power or shall be construed as a waiver thereof, but any such
remedy, right or power may be exercised from time to time and as often as may be deemed expedient.
A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a
waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or
power consequent thereon.

95

 

     Section 18.2 Modification, Waiver in Writing

     No modification, amendment, extension, discharge, termination or waiver of any provision of
this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by
Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by
the party against whom enforcement is sought, and then such waiver or consent shall be effective
only in the specific instance, and for the purpose, for which given. Except as otherwise expressly
provided herein, no notice to, or demand on Borrower, shall entitle Borrower to any other or future
notice or demand in the same, similar or other circumstances.

     Section 18.3 Delay Not a Waiver

     Neither any failure nor any delay on the part of Lender in insisting upon strict performance
of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege
hereunder, or under the Note or under any other Loan Document, or any other instrument given as
security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial
exercise thereof preclude any other future exercise, or the exercise of any other right, power,
remedy or privilege. In particular, and not by way of limitation, by accepting payment after the
due date of any amount payable under this Agreement, the Note or any other Loan Document, Lender
shall not be deemed to have waived any right either to require prompt payment when due of all other
amounts due under this Agreement, the Note or the other Loan Documents, or to declare a default for
failure to effect prompt payment of any such other amount.

     Section 18.4 Trial by Jury

     TO THE MAXIMUM EXTENT (IF ANY) PERMITTED BY APPLICABLE LAW, BORROWER, BORROWER PRINCIPAL AND
LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND
WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN
CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY
BORROWER, BORROWER PRINCIPAL AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE
AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF LENDER,
BORROWER PRINCIPAL AND BORROWER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY
PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER, BORROWER PRINCIPAL AND LENDER.

96

 

     Section 18.5 Waiver of Notice

     Borrower shall not be entitled to any notices of any nature whatsoever from Lender except with
respect to matters for which this Agreement or the other Loan Documents specifically and expressly
provide for the giving of notice by Lender to Borrower and except with respect to matters for which
Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of
notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect
to any matter for which this Agreement or the other Loan Documents do not specifically and
expressly provide for the giving of notice by Lender to Borrower.

     Section 18.6 Remedies of Borrower

     In the event that a claim or adjudication is made that Lender or its agents have acted
unreasonably or unreasonably delayed acting in any case where by law or under this Agreement or the
other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably
or promptly, Borrower agrees that neither Lender nor its agents shall be liable for any monetary
damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive
relief or declaratory judgment. The parties hereto agree that any action or proceeding to
determine whether Lender has acted reasonably shall be determined by an action seeking declaratory
judgment. Lender agrees that, in such event, it shall cooperate in expediting any action seeking
injunctive relief or declaratory judgment.

     Section 18.7 Waiver of Marshalling of Assets

     To the fullest extent permitted by law, Borrower, for itself and its successors and assigns,
waives all rights to a marshalling of the assets of Borrower, Borrower’s partners and others with
interests in Borrower, and of the Property, and agrees not to assert any right under any laws
pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead
exemption, the administration of estates of decedents, or any other matters whatsoever to defeat,
reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the
collection of the Debt without any prior or different resort for collection or of the right of
Lender to the payment of the Debt out of the net proceeds of the Property in preference to every
other claimant whatsoever.

     Section 18.8 Waiver of Statute of Limitations

     Borrower hereby expressly waives and releases, to the fullest extent permitted by law, the
pleading of any statute of limitations as a defense to payment of the Debt or performance of its
Other Obligations.

     Section 18.9 Waiver of Counterclaim

     Borrower hereby waives the right to assert a counterclaim, other than a compulsory
counterclaim, in any action or proceeding brought against it by Lender or its agents.

97

 

ARTICLE 19

GOVERNING LAW

     Section 19.1 Choice of Law

     This Agreement shall be governed, construed, applied and enforced in accordance with the laws
of the State and applicable laws of the United States of America, except that, with respect to the
security interest in each of the Reserve Accounts, the Lockbox Account and the Cash Management
Account, the laws of the state where each such account is located shall apply.

     Section 19.2 Severability

     Wherever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

     Section 19.3 Preferences

     Lender shall have the continuing and exclusive right to apply or reverse and reapply any and
all payments by Borrower to any portion of the obligations of Borrower hereunder. To the extent
Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be
repaid to a trustee, receiver or any other party under any Creditors Rights Laws, state or federal
law, common law or equitable cause, then, to the extent of such payment or proceeds received, the
obligations hereunder or part thereof intended to be satisfied shall be revived and continue in
full force and effect, as if such payment or proceeds had not been received by Lender.

ARTICLE 20

MISCELLANEOUS

     Section 20.1 Survival

     This Agreement and all covenants, agreements, representations and warranties made herein and
in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and
the execution and delivery to Lender of the Note, and shall continue in full force and effect so
long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set
forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto
is referred to, such reference shall be deemed to include the legal representatives, successors and
assigns of such party. All covenants, promises and agreements in

98

 

this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal
representatives, successors and assigns of Lender.

     Section 20.2 Lender’s Discretion

     Whenever pursuant to this Agreement, Lender exercises any right given to it to approve or
disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to
approve or disapprove or to decide whether arrangements or terms are satisfactory or not
satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion
of Lender and shall be final and conclusive.

     Section 20.3 Headings

     The Article and/or Section headings and the Table of Contents in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this Agreement for any
other purpose.

     Section 20.4 Schedules Incorporated

     The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with
the same effect as if set forth in the body hereof.

     Section 20.5 Offsets, Counterclaims and Defenses

     Any assignee of Lender’s interest in and to this Agreement, the Note and the other Loan
Documents shall take the same free and clear of all offsets, counterclaims or defenses which are
unrelated to such documents which Borrower may otherwise have against any assignor of such
documents, and no such unrelated counterclaim or defense shall be interposed or asserted by
Borrower in any action or proceeding brought by any such assignee upon such documents and any such
right to interpose or assert any such unrelated offset, counterclaim or defense in any such action
or proceeding is hereby expressly waived by Borrower.

     Section 20.6 No Joint Venture or Partnership; No Third Party Beneficiaries

     (a) Borrower and Lender intend that the relationships created hereunder and under the other
Loan Documents be solely that of borrower and lender. Nothing herein or therein is intended to
create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between
Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee,
beneficiary or lender.

     (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and
Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to
confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the
performance or observance of any of the obligations contained herein or therein. All conditions to
the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the
benefit of Lender and no other Person shall have standing to require

99

 

satisfaction of such conditions in accordance with their terms or be entitled to assume that
Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and
no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any
or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion,
Lender deems it advisable or desirable to do so.

     (c) The general partners, members, principals and (if Borrower is a trust) beneficial owners
of Borrower are experienced in the ownership and operation of properties similar to the Property,
and Borrower and Lender are relying solely upon such expertise and business plan in connection with
the ownership and operation of the Property. Borrower is not relying on Lender’s expertise,
business acumen or advice in connection with the Property.

     (d) Notwithstanding anything to the contrary contained herein, Lender is not undertaking the
performance of (i) any obligations under the Leases; or (ii) any obligations with respect to such
agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses and
other documents.

     (e) By accepting or approving anything required to be observed, performed or fulfilled or to
be given to Lender pursuant to this Agreement, the Mortgage, the Note or the other Loan Documents,
including, without limitation, any officer’s certificate, balance sheet, statement of profit and
loss or other financial statement, survey, appraisal, or insurance policy, Lender shall not be
deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness
of same, and such acceptance or approval thereof shall not constitute any warranty or affirmation
with respect thereto by Lender.

     (f) Borrower recognizes and acknowledges that in accepting this Agreement, the Note, the
Mortgage and the other Loan Documents, Lender is expressly and primarily relying on the truth and
accuracy of the representations and warranties set forth in 0 of this Agreement without any
obligation to investigate the Property and notwithstanding any investigation of the Property by
Lender; that such reliance existed on the part of Lender prior to the date hereof, that the
warranties and representations are a material inducement to Lender in making the Loan; and that
Lender would not be willing to make the Loan and accept this Agreement, the Note, the Mortgage and
the other Loan Documents in the absence of the warranties and representations as set forth in
Article 4 of this Agreement.

     Section 20.7 Publicity

     All news releases, publicity or advertising by Borrower or its Affiliates through any media
intended to reach the general public which refers to the Loan, Lender, Banc of America Securities
LLC, or any of their Affiliates shall be subject to the prior written approval of Lender, not to be
unreasonably withheld. Lender shall be permitted to make any news, releases, publicity or
advertising by Lender or its Affiliates through any media intended to reach the general public
which refers to the Loan, the Property, Borrower, Borrower Principal and their respective
Affiliates without the approval of Borrower or any such Persons. Borrower also agrees that Lender
may share any information pertaining to the Loan with Bank of America Corporation, including its
bank subsidiaries, Banc of America Securities LLC and any other Affiliates of the

100

 

foregoing, in connection with the sale or transfer of the Loan or any Participations and/or
Securities created.

     Section 20.8 Conflict; Construction of Documents; Reliance

     In the event of any conflict between the provisions of this Agreement and any of the other
Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge
that they were represented by competent counsel in connection with the negotiation, drafting and
execution of the Loan Documents and that such Loan Documents shall not be subject to the principle
of construing their meaning against the party which drafted same. Borrower acknowledges that, with
respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into
the Loan without relying in any manner on any statements, representations or recommendations of
Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any
limitation whatsoever in the exercise of any rights or remedies available to it under any of the
Loan Documents or any other agreements or instruments which govern the Loan by virtue of the
ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them
may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or
take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights
or remedies. Borrower acknowledges that Lender engages in the business of real estate financings
and other real estate transactions and investments which may be viewed as adverse to or competitive
with the business of Borrower or its Affiliates.

     Section 20.9 Entire Agreement

     This Agreement and the other Loan Documents contain the entire agreement of the parties hereto
and thereto in respect of the transactions contemplated hereby and thereby, and all prior
agreements among or between such parties, whether oral or written between Borrower and Lender are
superseded by the terms of this Agreement and the other Loan Documents.

     Section 20.10 Joint and Several Liability

     Each Borrower shall be jointly and severally liable for all obligations under the Loan and the
Loan Documents, and the joint and several obligations of the Borrower (a) (i) shall be absolute and
unconditional and shall remain in full force and effect (or be reinstated) until all the Loan shall
have been paid in full and the expiration of any applicable preference or similar period pursuant
to any bankruptcy, insolvency, reorganization, moratorium or similar law, or at law or equity,
without any claim having been made before the expiration of such period asserting an interest in
all or any part of any payment(s) received by the Lender, and, (ii) until such payment has been
made, shall not be discharged, affected, modified or impaired on the happening from time to time of
any event, including, without limitation, any of the following, whether or not with notice to or
the consent of any Borrower, (A) the waiver, compromise, settlement, release, termination or
amendment (including, without limitation, any extension or postponement of the time for payment or
performance or renewal or refinancing) of any or all of the obligations or agreements of any
Borrower under any Loan Document, (B) the failure to give notice to any or all of the Borrower of
the occurrence of an Event of Default under any of the Loan Documents, (C) the release,

101

 

substitution or exchange by the Lender of any of the Properties or other collateral (whether
with or without consideration) or the acceptance by the Lender of any additional collateral or the
availability or claimed availability of any other collateral or source or repayment or any
nonperfection or other impairment of collateral, (D) the release of any Person primarily or
secondarily liable for all or any part of the Loan, whether by the Lender or in connection with any
voluntary or involuntary liquidation, dissolution, receivership, insolvency, bankruptcy, assignment
for the benefit of creditors or similar event or proceeding affecting any or all of the Borrowers
or any other Person who, or any of whose property, shall at the time in question be obligated in
respect of the Loan or any part thereof, or (E) to the extent permitted by applicable law, any
other event, occurrence, action or circumstance that would, in the absence of this Section, result
in the release or discharge of any or all of the Borrowers from the performance or observance of
any obligation, covenant or agreement contained in any of the Loan Documents; (b) the Borrowers
expressly agree that the Lender shall not be required first to initiate any suit or to exhaust its
remedies against any Borrower or any other Person to become liable or against any of the Property
or other collateral in order to enforce the Loan Documents and expressly agree that,
notwithstanding the occurrence of any of the foregoing, the Borrowers shall be and remain directly
and primarily liable for all sums due under the Loan Documents; and (c) on disposition by the
Lender of any Property or other collateral, the Borrowers shall, subject to the other terms of this
Agreement, be and shall remain jointly and severally liable for any deficiency.

102

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AFL05 DUNCAN SC LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AFL05 Duncan SC Member LLC, a Delaware limited
	 	 	 	 	liability company, its sole and managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Gladstone Commercial Limited Partnership, a
	 	 	 	 	 	 	Delaware limited partnership, its sole and
	 	 	 	 	 	 	managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Gladstone Commercial Partners, LLC, a
	 	 	 	 	 	 	 	 	Delaware limited liability company, its
	 	 	 	 	 	 	 	 	general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	Gladstone Commercial Corporation, a	 	 
	 

	 	 	 	 	 	 	 	 	 	Maryland corporation, its managing	 	 
	 

	 	 	 	 	 	 	 	 	 	member	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 	 	Title:	 	 
	 

	 	 	 	 	 	 

[signatures continued on next page]

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LITTLE ARCH CHARLOTTE NC LLC, a Delaware
	 	 	limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	LittleArch04 Charlotte NC Member LLC, a Delaware
	 	 	 	 	limited liability company, its sole and managing
	 	 	 	 	member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Gladstone Commercial Limited Partnership, a
	 	 	 	 	 	 	Delaware limited partnership, its sole and
	 	 	 	 	 	 	managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Gladstone Commercial Partners, LLC, a
	 	 	 	 	 	 	 	 	Delaware limited liability company, its
	 	 	 	 	 	 	 	 	general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	Gladstone Commercial Corporation,	 	 
	 

	 	 	 	 	 	 	 	 	 	a Maryland corporation, its	 	 
	 

	 	 	 	 	 	 	 	 	 	managing member	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:
	 

	 	 	 	 	 	 
	 	 	Title:
	 

	 	 	 	 	 	 

[signatures continued on next page]

 

 

	 	 	 
	 

	 	BORROWER PRINCIPAL:
	 
	 	 
	 

	 	Acknowledged and agreed to with respect to its
obligations set forth in Article 4, Section 12.6,
Article 15 and Article 18 hereof:
	 
	 	 
	 

	 	GLADSTONE COMMERCIAL CORPORATION,
	 

	 	a Maryland corporation

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:
	 

	 	 	 	 	 	 
	 	 	Title:
	 

	 	 	 	 	 	 

[signatures continued on next page]

 

 

	 	 	 	 	 	 	 
	 	 	LENDER:
	 	 	BANK OF AMERICA, N.A., a national banking association
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:
	 

	 	 	 	 	 	 
	 	 	Title:
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

Borrower Equity Ownership Structure

AFL is 100% owned by AFL05 Duncan SC Member LLC.

Little Arch is 100% owned by LittleArch04 Charlotte NC Member LLC.

 

 

EXHIBIT B

Form of Tenant Direction Letter

[BORROWER LETTERHEAD]

                     ___, 20__

[TENANTS UNDER LEASES]

	 	 	 
	Re:

	 	Lease dated ___between                     ,
	 

	 	as Landlord, and                     , as Tenant,
	 

	 	concerning premises known as                     

Gentlemen:

        This letter shall constitute notice to you that the undersigned has granted a security
interest in the captioned lease and all rents, additional rent and all other monetary obligations
to landlord thereunder (collectively, “Rent”) in favor of Bank of America, N.A., as lender
(“Lender”), to secure certain of the undersigned’s obligations to Lender. The undersigned hereby
irrevocably instructs and authorizes you to disregard any and all previous notices sent to you in
connection with Rent and hereafter to deliver all Rent to the following address:

                                                            

                                                            

                                                            

        The instructions set forth herein are irrevocable and are not subject to modification in any
manner, except that Lender, or any successor lender so identified by Lender, may by written notice
to you rescind the instructions contained herein.

Sincerely,

[BORROWER]

ACKNOWLEDGMENT AND AGREEMENT

The undersigned acknowledges notice of the security interest of Lender and hereby confirms that the
undersigned has received no notice of any other pledge or assignment of the Rent and will honor the
above instructions.

[Tenant]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Its:	 	 

Dated as of:                      ___, 20__

 

 

SCHEDULE I

REQUIRED REPAIRS

	 	 	 	 	 	 	 
	REPAIR	 	 	 	RESERVE AMOUNT	 
	1.
	 	Install one ADA handicapped accessible parking space	 	$ 0	 
	 
	 	 	 	 	 	 
	2.
	 	Install and modify pole mounted ADA compliant parking space signs	 	$ 0	 
	 
	 	 	 	 	 	 
	3.
	 	Completion of roof repairs to extend useful life of roof	 	$ 0	 

 

 

SCHEDULE II

LETTER OF CREDIT REQUIREMENTS

Banks of America’s requirements for a Letter of Credit are as follows:

	 	•	 	Not Bank of America issued,
	 
	 	•	 	A provider with a credit rating of not less than “A”,
	 
	 	•	 	Irrevocable & non-cancelable,
	 
	 	•	 	Unconditional,
	 
	 	•	 	Transferable,
	 
	 	•	 	Automatically annually renewable,
	 
	 	•	 	Can be partially drawn upon, and
	 
	 	•	 	Otherwise in form and substance acceptable to Lender upon review.

“Letter of Credit” shall mean an irrevocable, unconditional, transferable, clean sight draft (there
are no other conditions for drawing or documentation requirements for drawings permitted other than
just presenting the letter of credit) standby letter of credit in favor of Lender issued by an
Eligible Institution, in form and substance acceptable to Lender in its sole discretion, that also
provides for, but not limited to, the following:

          (a) the expiration date of the letter of credit shall exceed the Maturity Date by at least
ninety (90) days (either pursuant to the initial term or pursuant to automatic renewals which
require no action by Lender or the beneficiary) —

          (b) entitling Lender to draw thereon in a location to be determined by Lender (probably
Charlotte, Los Angeles or New York).

“Eligible Institution” shall mean a depository institution or trust company insured by the Federal
Deposit Insurance Corporation, the short term unsecured debt obligations or commercial paper of
which are rated at least “A-1 +” by S&P, “P-1” by Moody’s and “F-1+” by Fitch in the case of
accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which
funds are held for more than thirty (30) days, the long term unsecured debt obligations of which
are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s).

The Letter of Credit should be addressed to:

Bank of America, NA. its Successors and/or Assigns ATIMA

	 	 	 
	c/o:

	 	LJ Melody and Company
	 

	 	GEMSA Loan Services, LP
	 

	 	1500 City West Blvd., Suite 200
	 

	 	Houston, TX 77042

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