Document:

exv10w4

 

Exhibit 10.4

PROMISSORY NOTE

	 	 	 	 	 
	Note Amount: $14,309,000.00	 	Date of Note: November 22, 2006
	 
	 	 	 	 
	Note Rate: 5.76%	 	Maturity Date: December 1, 2016
	 
	 	 	 	 
	 

	 	Property:
	 	Gladstone TX/NC Portfolio
	 

	 	 	 	(See Rider 1 for list of properties)

     FOR VALUE RECEIVED, the undersigned, FIRST PARK TEN COCO SAN ANTONIO,
L.P.,  a Delaware limited partnership (“COCO”), whose taxpayer identification number is 91-2198700,
SLEE GRAND PRAIRIE, L.P., a Delaware limited partnership (“SLEE”), whose taxpayer identification
number is 91-2198700 and OB MIDWAY NC GLADSTONE COMMERCIAL LLC, a
Delaware limited liability company (“OB”), whose taxpayer identification number is 91-2198700
(COCO, SLEE and OB shall sometimes be referred to herein individually and collectively as,
‘“Borrower”), each having an address at c/o Gladstone Commercial Corporation, 1521 Westbranch
Drive, McLean, Virginia 22102, promises to pay to the order of CIBC INC., a Delaware corporation
(“Lender”), at the office of Lender at 300 Madison Avenue, 8th Floor, Attn: Real Estate Finance
Group, New York, New York 10017, or at such other place as Lender may designate to Borrower in
writing from time to time, the Note Amount (as defined above), together with interest on so much
thereof as is from time to time outstanding and unpaid, from the date of the advance of the
principal evidenced hereby, at the rate per annum equal to the Note Rate (as defined above), in
lawful money of the United States of America, which shall at the time of payment be legal tender
in payment of all debts and dues, public and private.

ARTICLE I — TERMS AND CONDITIONS

     1.01 Payment of Principal and Interest.

     (a) Interest shall be computed hereunder based on a 360-day year and paid for the actual
number of days elapsed for any whole or partial month in which interest is being calculated. In
computing the number of days during which interest accrues, the day on which funds are initially
advanced shall be included (regardless of the time of day such advance is made), and the day on
which funds are repaid shall be included unless repayment is credited prior to close of business of
such day. Payments in federal funds immediately available in the place designated for payment
received by Lender prior to 2:00 p.m. local time on a business day in the State of Lender’s
principal office at said place of payment shall be credited prior to close of business of the day
such funds are received, while other payments may, at the option of Lender, not be credited until
immediately available to Lender in federal funds at the place designated for payment prior to 2:00
p.m. local time at said place of payment on a day on which Lender is open for business.

     (b) Except as otherwise provided in this Note, during the period from the date hereof through
and including November 30, 2008 (such period, the “Interest-Only Period”), interest only
shall be payable, in arrears, on the first day of each calendar month (the first day of each
calendar month until payment in full of this Note is hereinafter referred to as a “Payment
Date”) beginning on the first day of the second full calendar month following the date of this
Note (or on the first day of the first full calendar month following the date hereof, in the event
the advance of the principal amount evidenced by this Note is the first day of a calendar month)
through and including the Payment Date on December 1, 2008. No amortization of the principal
balance of this Note shall be required during the Interest-Only Period.

 

 

     (c) Beginning January 1, 2009, principal and interest shall be payable in equal consecutive
monthly installments, each in the amount of $83,594.36, on each Payment Date until payment in full
of this Note. As used in this Note and the other Loan Documents, “Monthly Payment Amount” shall
mean (i) for the period from the date hereof through and including the end of the interest-Only
Period, an amount equal to the monthly amount of interest due pursuant to Section 1.01(b) of this
Note, and (ii) for the period from and after the end of the Interest-Only Period, an amount equal
to $83,594,36. On the Applicable Maturity Date (as hereinafter defined), the entire outstanding
principal balance hereof, together with all accrued but unpaid interest thereon and all other sums
due hereunder, shall be due and payable in full. So long as no Event of Default (as hereinafter
defined) exists hereunder, each such monthly installment shall be applied first, to any amounts
hereafter advanced by Lender hereunder or under any other Loan Document, second, to any late fees
and other amounts payable to Lender, third, to the payment of accrued interest and last to
reduction of principal.

     (d) If the advance of the principal amount evidenced by this Note is made on a date other than
the first day of a calendar month, then Borrower shall pay to Lender contemporaneously with the
execution hereof interest at the Note Rate for a period from the date of such advance through and
including the last day of such calendar month.

     1.02 Prepayment.

          (a) Borrower may not voluntarily prepay this Note in whole or in part at any time prior to the
expiration of the Lock-out Period. After the expiration of the Lock-out Period, Borrower may prepay
this Note in whole only, provided, that (i) written notice of such prepayment is received
by Lender not more than ninety (90) days and not less than thirty (30) days prior to the date of
such prepayment, (ii) such prepayment is accompanied by all interest accrued hereunder and all
other sums due hereunder and under the other Loan Documents (as defined in Section 1.04) and (iii)
such prepayment (x) is received by Lender on a Payment Date, or (y) if not received on a Payment
Date, is accompanied by a payment of interest, calculated at the Note Rate, on the amount prepaid,
based on the number of days from the date such prepayment is received through the next Payment
Date. “Lock-out Period” shall mean the period of time from the date hereof to, but not
including, the date that is three (3) months prior to the Maturity Date (as defined above).

          (b) Except as hereinafter provided in this subparagraph (b), in the event that any prepayment
is accepted by Lender prior to the expiration of the Lock-out Period, or if a prepayment results
from Lender’s exercise of its remedies hereunder, Borrower shall pay Lender a Yield Maintenance
Charge (as defined below) in connection with such prepayment. Prepayments of this Note prior to
the expiration of the Lock-out Period shall be permitted without notice, and without the imposition
of a Yield Maintenance Charge or any other premium or penalty in connection with Lender’s
application of insurance or condemnation proceeds to the repayment of the Loan pursuant to the
Security Instrument (as defined in Section 1.04 hereof), provided, however, if an Event of Default
shall have occurred and be continuing at the time of the related casualty or condemnation, in
addition to applying such proceeds as provided in the Security Instrument, Borrower shall pay a
Yield Maintenance Charge to Lender. Lender, at its option, may elect to use such casualty and
condemnation proceeds and Yield Maintenance Charge to defease an amount of the Loan equal to the
proceeds applied as a prepayment, in the manner provided in Section 1.03 below. Any prepayment
during the Lockout Period shall not reduce the Monthly Payment Amount payable hereunder unless such
prepayment is accompanied by a Yield Maintenance Charge and Lender elects, in its sole discretion,
to defease all or a portion of the Loan with the related proceeds. Notwithstanding the foregoing to
the contrary, in the event of a prepayment of the Loan following a casualty or condemnation and the
application by Lender of insurance proceeds to prepay all or a portion of the Loan, then provided
no Event of Default exists, Lender shall cause the Monthly Payment Amount to be recast based on the
remaining outstanding principal balance of the Loan (after giving effect to any such application of
insurance and/or condemnation proceeds to the Loan) assuming an amortization term that is equal to
the remaining number of months (following the date of such application of insurance

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and/or condemnation proceeds) in the original amortization term applied by Lender to calculate the
original Monthly Payment Amount.

          (c) No tender of a prepayment of this Note with respect to which a Yield Maintenance Charge
is due shall be effective unless such prepayment is accompanied by such Yield Maintenance Charge.
No principal amount repaid or defeased may be re-borrowed.

          (d) As used in this Note, the “Yield Maintenance Charge” shall mean, as of any date,
the greater of (1) the excess, if any, of the Defeasance Deposit over the outstanding principal
balance of this Note, and (2) an amount equal to one percent (1%) of the outstanding principal
balance of this Note.

     1.03 Defeasance.

          (a) At any time during the Defeasance Period (as hereinafter defined), Borrower may obtain a
release of the Property from the lien of the Security Instrument and other Loan Documents upon the
satisfaction of the following conditions:

     (1) not less than thirty (30) days’ prior written notice shall be given to Lender
specifying a date (the “Defeasance Date”) on which the Defeasance Deposit (as
hereinafter defined) is to be delivered;

     (2) all accrued and unpaid interest and all other sums due under this Note and under
the other Loan Documents up to the Defeasance Date, including, without
limitation, all reasonable costs and expenses incurred by Lender or its agents in
connection with such defeasance (including, without limitation, any reasonable legal fees
and expenses incurred in connection with obtaining and reviewing the Defeasance Collateral
(as hereinafter defined) and the preparation of the Defeasance Security Agreement (as
hereinafter defined) and related documentation), shall be paid in full on or prior to the
Defeasance Date;

     (3) [RESERVED]

     (4) on or before the Defeasance Date, Borrower shall pay to Lender the principal
amount of the Loan to be defeased together with an additional amount such that the aggregate
amount (the “Defeasance Deposit”) is sufficient to purchase direct, non-callable
and non- prepayable obligations of the United States of America or, at the option of Lender
(and with the approval of each applicable Rating Agency, if a Secondary Market Transaction
has then occurred (the two capitalized terms used above without definition shall have the
respective meanings attributed thereto in the Security Instrument)), other securities
considered “government securities” within the meaning of the Investment Company Act of 1940,
as amended (the “Defeasance Collateral”) that provide for payments prior, but as
close as possible, to all successive Payment Dates occurring after the Defeasance Date
through and including the Maturity Date, with each such payment being equal to or greater
than (1) the Monthly Payment Amount and (2) with respect to the payment due on the Maturity
Date, the entire outstanding principal balance of this Note together with any interest
accrued as of such date and all other amounts payable pursuant to the Loan Documents;

     (5) the Defeasance Collateral shall be duly endorsed by the holder thereof as directed
by Lender or accompanied by a written instrument of transfer in form and substance wholly
satisfactory to Lender (including, without limitation, such instruments as may be required
by the depository institution holding such securities to effectuate book-entry transfers and
pledges through the book-entry facilities of such institution) in order to create a first
priority security interest therein in favor of Lender in conformity with an applicable state
and federal laws governing granting of such security interests;

     (6) Borrower shall deliver the following to Lender on or prior to the Defeasance Date:

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     A. a pledge and security agreement, in form and substance satisfactory to
Lender in its sole discretion, creating a first priority security interest in favor
of Lender in the Defeasance Deposit and the Defeasance Collateral (the
“Defeasance Security Agreement”), which shall provide, among other things,
that any excess received by Lender from the Defeasance Collateral over the amounts
payable by Borrower hereunder shall be refunded to Borrower promptly after each
monthly Payment Date;

     B. a certificate of Borrower certifying that all of the requirements set forth
in this Section 1.03(a) have been satisfied;

     C. an opinion of counsel for Borrower in form and substance and delivered by
counsel satisfactory to Lender in its sole discretion stating, among other things,
(x) that Lender has a perfected first priority security interest in the Defeasance
Deposit and the Defeasance Collateral, (y) that the Defeasance Security Agreement is
enforceable against Borrower in accordance with its terms and (z) that the
defeasance will not cause the Trust (as hereinafter defined) to fail to qualify as a
“real estate mortgage investment conduit” (a “REMIC”), within the meaning of
Section 860D of the Internal Revenue Code of 1986, as amended from time to time or
any successor statute (the “Code”);

     D. if required by the Rating Agencies, evidence in writing from each of the
Rating Agencies (as defined in the Security Instrument) to the effect that such
release will not result in a qualification, downgrade or withdrawal of any rating in
effect immediately prior to the Defeasance Date for any securities issued in
connection with a Secondary Market Transaction (as defined in the Security
Instrument);

     E. a certificate in form reasonably acceptable to Lender, from a firm of
independent certified public accountants acceptable to Lender, certifying
that the Defeasance Collateral is sufficient to make the payments required
by Paragraph 1.03(a)(4) above; and

     F. such other certificates, opinions, documents or instruments as Lender may
reasonably require.

The “Defeasance Period” shall mean the period of time commencing on the date which is the
earlier to occur of (i) two (2) years after the “startup day”, within the meaning of Section
860G(a)(9) of Code (such day, the “Startup Day”), of the REMIC that holds this Note (the
“Trust”) and (ii) four (4) years after the date hereof, and ending on the expiration of
the Lockout Period.

All of Lender’s third party out of pocket costs and expenses of satisfying the foregoing conditions
and of the transactions contemplated by this Section 1.03, including, without limitation, the
reasonable costs and expenses of Lender’s counsel, shall be paid by Borrower simultaneously with
the defeasance of this Note.

          (b) Upon a defeasance in accordance with Section 1.03(a), Borrower shall, at Lender’s
request, assign all its obligations and rights under this Note to a special-purpose,
bankruptcy-remote entity reasonably acceptable to Lender (“Successor Borrower”) to be
formed by Borrower (unless Lender elects to do so), and in either event, at Borrower’s sole cost
and expense. In connection therewith, the Successor Borrower shall execute an assumption agreement
in form and substance reasonably satisfactory to Lender pursuant to which Successor Borrower shall
assume Borrower’s obligations under this Note and the Defeasance Security Agreement. The sole
asset of Successor Borrower shall be the Defeasance Collateral (or, if the Successor Borrower is
formed by Lender, the sole purpose of the Successor Borrower shall be to hold the Defeasance
Collateral and similar assets with respect to other loans owned by the Trust). In connection with
such assignment and assumption, Borrower and/or Successor Borrower shall deliver to Lender an
opinion of counsel in form and substance and delivered by counsel reasonably satisfactory to
Lender stating, among other things, that such assumption agreement is enforceable against Borrower
and Successor Borrower, as applicable, in accordance with its terms and that this Note, the
Defeasance Security Agreement and any other documents executed in connection with

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such defeasance are enforceable against Borrower or Successor Borrower, as applicable, in
accordance with their respective terms. Upon an assumption of Borrower’s obligations under this
Note and the Defeasance Security Agreement by Successor Borrower acceptable to Lender, Borrower
shall be relieved of its obligations under this Note and the Defeasance Security Agreement and, to
the extent such documents relate to the Property, the other Loan Documents.

          (c) Upon compliance with the requirements of Section 1.03(a) and (b), the Property shall be
released from the lien of the Security Instrument and the other Loan Documents, and the Defeasance
Collateral shall constitute the only collateral which shall secure this Note. Lender will, at
Borrower’s expense, execute and deliver any agreements reasonably requested by Borrower to release
the lien of the Security Instrument from the Property.

          (d) From time to time during the Defeasance Period, Borrower may obtain a release from the
lien of the Security Instrument of one or more Parcels (identified on Rider 1 hereto,
collectively, the “Parcels”), but less than all of the Property (as defined below)), in
each case together with all improvements thereon and other property appurtenant thereto which is
collateral for the loan evidenced hereby (each Parcel being released from the lien of the Security
Instrument is referred to as a “Release Parcel” and the Parcel(s) remaining subject to the
lien of the Security Instrument are referred to collectively as the “Remaining Parcel’’),
upon the satisfaction of the following conditions;

          (1) Borrower shall give Lender not less than thirty (30) days’ prior written notice,
specifying the date (the “Partial Defeasance Date”) on which the Partial Defeasance
Deposit (as defined below) is to be delivered, and identifying the Release Parcel being
released;

          (2)
All accrued and unpaid interest and other sums due under this Note and under the
other Loan Documents up to the Partial Defeasance Date, including, without limitation, all
reasonable costs and expenses incurred by Lender or its agents in connection with such
partial defeasance (including, without limitation, any reasonable legal fees and expenses
incurred in connection with obtaining and reviewing the Partial Defeasance Collateral (as
defined, below) and the preparation of the Defeased Note, the Undefeased Note, the Partial
Defeasance Security Agreement (as defined below) and related documentation), shall be paid
in full on or prior to the Partial Defeasance Date;

          (3) [RESERVED]

          (4) Lender, at Borrower’s expense, shall prepare all necessary documents to sever the
indebtedness evidenced by this Note into two substitute notes, one (the “Defeased
Note”) having a principal balance equal to the Adjusted Release Amount (as defined
herein) with respect to the Release Parcel, and the other (the “Undefeased Note”)
having a principal balance equal to the remaining principal balance outstanding on this Note
as of the Partial Defeasance Date. The “Monthly Payment Amount” of the Defeased Note and the
Undefeased Note shall be determined by proportionately allocating the Monthly Payment Amount
between them based on the principal amount of the Deferred Note and the Undefeased Note and
the interest rate set forth herein, as determined by Lender, such that the aggregate payment
each month under the Defeased Note and the Undefeased Note equals the Monthly Payment
Amount. The Defeased Note shall mature on the Maturity Date, and except as set forth above
shall have identical terms as this Note (except for the principal balance and the Monthly
Payment Amount thereunder), except that a Defeased Note cannot be the subject of any further
defeasance. The Undefeased Note shall have identical terms as this Note (except for the
principal balance and Monthly Payment Amount thereunder);

          (5) Borrower shall deliver to Lender on or prior to the Partial Defeasance Date, the
principal amount of the Defeased Note together with an additional amount such that the
aggregate amount (the “Partial Defeasance Deposit”) is sufficient to purchase
direct, non-callable and non-prepayable obligations of the United States of America (the
“Partial Defeasance

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Collateral”) that provide for payments prior, but as close as possible, to all
successive Payment Dates occurring after the Partial Defeasance Date through and including
the Anticipated Balloon Date, with each such payment being equal to or greater than the
amount of the corresponding installment of principal and interest under the Defeased Note;

          (6) The Partial Defeasance Collateral shall be duly endorsed by the holder thereof as
directed by Lender or accompanied by a written instrument of transfer in form and substance
wholly satisfactory to Lender (including, without limitation, such instruments as may be
required by the depository institution holding such securities to effectuate book-entry
transfers and pledges through the book-entry facilities of such institution) in order to
create a first priority security interest therein in favor of Lender in conformity with an
applicable state and federal laws governing granting of such security interests;

          (7) Borrower shall deliver the following to Lender on or prior to the Partial
Defeasance Date:

          A. a pledge and security agreement, in form and substance
satisfactory to Lender in its reasonable discretion, creating a first priority
security interest in favor of Lender in the Partial Defeasance Deposit and the
Partial Defeasance Collateral (the “Partial Defeasance Security Agreement”),
which shall provide, among other things, that any excess received by Lender from the
Partial Defeasance Collateral over the amounts payable under the Defeased Note shall
be refunded to Borrower promptly after each monthly Payment Date;

          B. a certificate of Borrower certifying that all of the requirements set forth
in this Section 1.03(d) have been satisfied;

          C. an opinion of counsel for Borrower in form and substance and delivered by
counsel satisfactory to Lender in its sole discretion stating, among other things,
(x) that Lender has a perfected first priority security interest in the Partial
Defeasance Deposit and the Partial Defeasance Collateral, (y) that the Partial
Defeasance Security Agreement is enforceable against Borrower in accordance with its
terms and (z) that the defeasance will not cause the Trust to fail to qualify as a
REMIC, within the meaning of Section 860D of the Code;

          D. if required by the Rating Agencies, evidence in writing from each of the
Rating Agencies to the effect that such release will not result in a qualification,
downgrade or withdrawal of any rating in effect immediately prior to the Partial
Defeasance Date for any securities issued in connection with a Secondary Market
Transaction;

          E. a certificate in form reasonably acceptable to Lender, from a firm of
independent certified public accountants acceptable to Lender, certifying that the
Partial Defeasance Collateral is sufficient to make the payments required by
Paragraph 1.03(d)(5) above;

          F. evidence reasonably acceptable to Lender that the Undefeased Note will
continue to be secured by the Security Instrument; and

          G. such other certificates, opinions, documents or instruments as Lender may
reasonably require.

If Borrower is defeasing an Undefeased Note from a prior defeasance in accordance with this Section
1.03(d), such defeasance shall be in accordance with the requirements of this Section 1.03.

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          (e) Upon a partial defeasance in accordance with Section 1.03(d), Borrower shall, at Lender’s
request, assign all its obligations and rights under the Defeased Note to a special-purpose
bankruptcy-remote entity (“Partial Defeasance Successor Borrower”) to be formed by Borrower
(unless Lender elects to do so), and in either event, at Borrower’s cost and expense. In connection
therewith, the Partial Defeasance Successor Borrower shall execute an assumption agreement in form
and substance reasonably satisfactory to Lender pursuant to which the Partial Defeasance Successor
Borrower shall assume Borrower’s obligations under the Defeased Note and the Partial Defeasance
Security Agreement. The sole asset of Partial Defeasance Successor Borrower shall be the Partial
Defeasance Collateral. In connection with such assignment and assumption, Borrower and/or
Partial Defeasance Successor Borrower shall:

          (1) deliver to Lender an opinion of counsel in form and substance and delivered by
counsel satisfactory to Lender in its sole discretion stating, among other things, that such
assumption agreement is enforceable against Borrower and Partial Defeasance Successor
Borrower, as applicable, in accordance with its terms and that the Defeased Note and the
Partial Defeasance Security Agreement and any other documents executed in connection with
such defeasance are enforceable against Partial Defeasance Successor Borrower, and the
Undefeased Note remains enforceable against Borrower, each in accordance with their
respective terms, and

          (2) pay all third party out of pocket costs and expenses incurred by Lender or its
agents in connection with such assignment and assumption (including, without limitation, any
fees and disbursements of legal counsel).

Upon an assumption of Borrower’s obligations under the Defeased Note and the Partial Defeasance
Security Agreement by Partial Defeasance Successor Borrower acceptable to Lender, (i) Borrower
shall be relieved of its obligations under the Defeased Note and the Partial Defeasance Security
Agreement and, to the extent such documents relate to the Release Parcel, the other Loan Documents,
and (ii) if the Release Parcel is owned other than by the owner of the Remaining Parcel, then the
owner of the Release Parcel shall be relieved of its obligations under the Undefeased Note and the
other Loan Documents for matters occurring following the partial defeasance.

          (f) Upon compliance with the requirements of Section 1.03(d) and (e), the Release Parcel shall
be released from the lien of the Security Instrument and the other Loan Documents, and the Partial
Defeasance Collateral shall constitute collateral which shall secure the Defeased Note. Lender
will, at Borrower’s expense, execute and deliver any agreements reasonably requested by Borrower to
release the lien of the Security Instrument from the Property.

          (g) As used in Section 1.3(d) of this Note:

     (1)
“Adjusted Release Amount” shall mean, with respect to the Release
Parcel, the greater of:

          (a) 125% of the Allocated Loan Amount with respect to such Parcel; and

          (b) An amount such that, after giving effect to such partial
defeasance, the Debt Service Coverage Ratio (as defined below) for the Undefeased
Note, based on income from the Remaining Parcel, shall be not less than 1:30:1.

     (2)
“Allocated Loan Amount” shall mean, with respect to each Parcel,
the amount set forth on Exhibit A to this Note.

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          (3)
“Debt Service Coverage Ratio” shall mean the ratio, expressed as a
percentage, of (a) the Net Operating Income (as defined below) derived from operation of the
Property, as determined by Lender for the twelve (12) month period ending prior to Lender’s
receipt of the notice of partial defeasance pursuant to Section 1.03(d)(l), to (b) the
annual debt service payments that would be payable on the Note prior to the date of such
partial defeasance based upon a 30 year amortization as calculated by Lender.

          (4)
“Net Operating Income” shall mean the sum of Rents and Profits for the
Property (as those terms are defined in the Security Instrument), and other reimbursable
expenses, less (i) a vacancy factor calculated by Lender at the greater of actual, market or
based on underwriting criteria in effect as of the date hereof, and (ii) all normalized
operating expenses to be paid by Borrower according to the Leases for the Property, which
shall include, but not be limited to, (a) third party management fees (including salaries,
benefits and all other charges imposed by the management company), (b) Taxes (as that term
is defined in the Security Instrument), (c) common area maintenance expenses, (d) property
and liability insurance as required under the Leases, (e) repair and replacement of any item
of a non-capital nature, (f) any repair or replacement of a capital item, amortized at the
Borrower’s cost of funds over the item’s useful life, (g) payments deposits into the Impound
Account (as that term is defined in the Security Instrument), (h) normalized deposits into
the Replacement Reserve and the Leasing Reserve (as those terms are defined in the Security
Instrument) based on underwriting criteria in effect as of the date hereof, and (i) general
and administrative expenses, advertising expenses and professional fees incurred by
Borrower, all as determined by Lender using underwriting criteria in effect as of the date
hereof, without duplication of any of the foregoing.

          (h) Lender, as attorney-in-fact of Borrower, shall cause the purchase of the Defeasance
Collateral with the Defeasance Deposit, and the Partial Defeasance Collateral with the Partial
Defeasance Deposit (as the case may be), which purchase may be
through an affiliate of Lender.
Borrower shall be responsible for the payment of any brokerage or other transaction fees in
connection with such purchase. Such brokerage or other transaction fees in connection with such
purchase shall be commercially reasonable.

     1.04 Security. The indebtedness evidenced by this Note and the obligations created
hereby are secured by, inter alia, that certain (i) Deed of Trust, Assignment of Leases and Rents
and Security Agreement dated of even date herewith from First Park Ten COCO San Antonio, LP, as
mortgagor, for the benefit of Lender, as mortgagee, encumbering that certain real property situated
in the City of San Antonio, County of Bexar, State of Texas, (ii) Deed of Trust, Assignment of
Leases and Rents and Security Agreement dated as even date herewith from SLEE Grand Prairie, LP, as
mortgagor, for the benefit of Lender, as mortgagee, encumbering that certain real property situated
in the City of Arlington, County of Tarrant, State of Texas, and (iii) Deed of Trust, Assignment
of Leases and Rents and Security Agreement dated of even date herewith from OB Midway NC Gladstone
Commercial LLC, as mortgagor, for the benefit of Lender, as mortgagee, encumbering that certain
real property situated in the City of Lexington, County of Davidson, State of North Carolina (the
foregoing three mortgages, as each may be hereafter amended, consolidated or modified, severed or
spread from time to time, collectively, the “Security Instrument”) from Borrower to Lender,
dated on or about the date hereof, concerning the Property (as described above). The Security
Instrument together with this Note, Assignment of Leases and Rents, Assignment of Warranties and
Other Contract Rights, Hazardous Substances Indemnity Agreement, Indemnity & Guaranty Agreement,
Manager’s Subordination Agreement, Closing Certificate, Cash Management Agreement, Clearing Bank
Instruction Letter, and FIRPTA Certificate, each of even date herewith and as amended or modified
from time to time, are herein referred to collectively as the
“Loan Documents”. All of the terms
and provisions of the Loan Documents are incorporated herein by reference. Some of the Loan
Documents are to be filed for record on or about the date hereof in the appropriate public records.

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     1.05 Exculpation. Notwithstanding anything in the Loan Documents to the contrary, but
subject to the qualifications hereinbelow set forth, Lender agrees that (i) Borrower shall be
liable upon the indebtedness evidenced hereby and for the other obligations arising under the Loan
Documents to the full extent (but only to the extent) of the security therefor, which security is
all of the properties (whether real or personal, including, without limitation, the
“Property”), rights, estates and interests now or at any time hereafter securing the
payment of this Note and/or the other obligations of Borrower under the Loan Documents
(collectively, the “Collateral”), (ii) if default occurs in the timely and proper payment
of all or any part of such indebtedness evidenced hereby or in the timely and proper performance
of the other obligations of Borrower under the Loan Documents, any judicial or other proceedings
brought by Lender against Borrower shall be limited to the preservation, enforcement and
foreclosure, or any thereof, of the Collateral, and the liens, security titles, estates,
assignments, rights and security interests appurtenant or incident thereto, now or at any time
hereafter securing the payment of this Note and/or the other obligations of Borrower under the
Loan Documents, and no attachment, execution or other writ of process shall be sought, issued or
levied upon any assets, properties or funds of Borrower other than the Collateral except with
respect to the liability described below in this section, and (iii) in the event of a foreclosure
of such liens, security titles, estates, assignments, rights or security interests securing the
payment of this Note and/or the other obligations of Borrower under the Loan Documents, no
judgment for any deficiency upon the indebtedness evidenced hereby shall be sought or obtained by
Lender against Borrower, except with respect to the liability described below in this section;
provided, however, that, notwithstanding the foregoing provisions of this section,
Borrower shall be fully liable, and subject to legal action, for all losses, costs and expenses
incurred by Lender (including, without limitation, the reasonable fees and expenses of Lender’s
counsel) by reason of:

          (a) proceeds paid under any insurance policies (or paid as a result of any other claim or
cause of action against any person or entity) by reason of damage, loss or destruction to all or
any portion of the Property, to the full extent of such proceeds not previously delivered to
Lender, but which, under the terms of the Loan Documents, should have been delivered to Lender;

          (b) proceeds or awards resulting from the condemnation or other taking in lieu of condemnation
of all or any portion of the Property, or any of them, to the full extent of such proceeds or
awards not previously delivered to Lender, but which, under the terms of the Loan Documents, should
have been delivered to Lender;

          (c) all tenant security deposits or other refundable deposits paid to or held by Borrower or
its agents in connection with leases of all or any portion of the Property which are not applied in
accordance with the terms of the applicable lease or other agreement, to the full extent of such
deposits;

          (d) rent and other payments received by Borrower or its agents from tenants under leases of
all or any portion of the Property paid more than one month in advance (except payments made in the
nature of security made by tenants pursuant to the terms of the leases), to the full extent of any
such rents collected by Borrower and not remitted to Lender by Borrower or its agents pursuant to
the terms of the Loan Documents promptly upon the occurrence of an Event of Default;

          (e) rents, issues, profits and revenues of all or any portion of the Property received by
Borrower or its agents or applicable to a period after the occurrence of any Event of Default or
any event which, solely with the passage of time, would constitute an
Event of Default hereunder,
which are not paid to Lender pursuant to the terms of the Loan Documents, to the full extent of the
rents, issues, profits and revenues not so paid;

          (f) physical
waste committed on the Property by, or damage to the Property as a result of the
intentional misconduct or gross negligence of, Borrower or any Indemnitor (as defined in the
Security Instrument) or any holder of equity interests in Borrower or Indemnitor, or any person
acting on behalf of, or at the direction of, Borrower or Indemnitor, or any removal of the Property
in violation of the terms of the Loan Documents;

9

 

          (g) failure to pay, or make deposits to the Impound Account (as defined in the Security
Instrument) on account of, any valid taxes, assessments, mechanic’s liens, materialmen’s liens or
other liens which could create liens on any portion of the Property which would be superior to the
lien or security title of the Security Instrument or the other Loan Documents, to the extent that
the Property generated funds sufficient to pay, or make deposits to the Impound Accounts on
account of, such items;

          (h) failure by Borrower to pay, or make deposits to the Impound Account on account of, the
premiums on insurance policies required under the Loan Documents to be maintained by Borrower or
with respect to the Property, to the extent that the Property generated funds sufficient to pay,
or make deposits to the Impound Accounts on account of, such items;

          (i) fraud or material misrepresentation by Borrower or any Indemnitor, or any holder of
equity interests in Borrower or Indemnitor, or any person acting on behalf of, or at the direction
of, Borrower or Indemnitor; and

          (j) the filing (i) by Borrower of a voluntary bankruptcy petition, or (ii) against Borrower
of an involuntary bankruptcy petition by (x) any general partner, (y) managing member or other
constituent entity of Borrower, or (z) any indemnitor with respect to Borrower’s obligations under
the Loan Documents, or by any affiliate of any person or entity described in clauses (i) and (ii).

Furthermore, notwithstanding anything to the contrary in the Loan Documents, in the event that:
(A) the first Monthly Payment Amount is not paid when due; (B) Borrower fails to obtain Lender’s
prior written consent to any subordinate financing or other voluntary lien encumbering the
Property, if such consent is required by the Loan Documents; or (C) Borrower fails to obtain
Lender’s prior written consent to any assignment, transfer or conveyance of the Property or any
interest therein, if such consent is required by Loan Documents, then the Loan shall be fully
recourse to Borrower.

     Nothing contained in this section shall (l) be deemed to be a release or impairment of the
indebtedness evidenced by this Note or the other obligations of Borrower under the Loan Documents
or the lien of the Loan Documents upon the Property, or (2) preclude Lender from foreclosing the
Loan Documents in case of any Event of Default or from enforcing any of the other rights of Lender
except as stated in this section, or (3) reduce, release, relieve, waive, limit or impair in any
way whatsoever the Indemnity and Guaranty Agreement and/or the Hazardous Substances Indemnity
Agreement each of even date executed and delivered in connection with the indebtedness evidenced
by this Note or release, relieve, reduce, waive or impair in any way whatsoever, any obligation of
any party to such Indemnity and Guaranty Agreement and Hazardous Substances Indemnity Agreement or
(4) waive any right that Lender may have under Section 506 (a), 506 (b), 1111(b) or any other
provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Loan or to
require that all collateral shall continue to secure all of the indebtedness owing to Lender in
accordance with the Loan Documents.

     1.06 Event of Default. It is hereby expressly agreed that should any default occur in the
payment of principal or interest as stipulated above and such payment is not made within seven (7)
days of the date such payment is due (provided that no grace period is provided for the payment of
principal and interest due on the Applicable Maturity Date), or should an “Event of
Default” (as defined in the Security Instrument) occur, or should any other default occur under
any of the Loan Documents which is not cured within any applicable grace or cure period, then an
“Event of Default” shall exist hereunder, and in such event the indebtedness evidenced hereby,
including all sums advanced or accrued hereunder or under any other Loan Document, and all unpaid
interest accrued thereon, shall, at the option of Lender and without notice to Borrower, at once
become due and payable and may be collected forthwith, whether or not there has been a prior demand
for payment and regardless of the stipulated date of maturity.

     1.07 Late Charges and Default Interest Rate. In the event that any payment is not received
by Lender on the date when due (subject to the applicable notice and/or grace period), then in
addition to any default interest payments due hereunder, Borrower shall also pay to Lender a late
charge in an amount

10

 

equal to five percent (5.0%) of the amount of such overdue payment, provided, however, that such
late charge shall not be required in connection with the balloon payment of principal due at the
Maturity Date. So Song as any Event of Default exists hereunder, regardless of whether or not
there has been an acceleration of the indebtedness evidenced hereby, and at all times after
maturity of the indebtedness evidenced hereby (whether by acceleration or otherwise), interest
shall accrue on the outstanding principal balance of this Note at a rate per annum equal to four
percent (4.0%) plus the Note Rate (as hereinafter defined), or if such increased rate of interest
may not be charged or collected under applicable law, then at the maximum rate of interest, if
any, which may be charged or collected from Borrower under applicable law (the “Default
Interest Rate”), and such default interest shall be immediately due and payable. Borrower
acknowledges that it would be extremely difficult or impracticable to determine Lender’s actual
damages resulting from any late payment or Event of Default, and such late charges and default
interest are reasonable estimates of those damages and do not constitute a penalty.

     1.08 Cumulative Remedies. The remedies of Lender in this Note or in the Loan
Documents, or at law or in equity, shall be cumulative and concurrent, and may be pursued singly,
successively or together in Lender’s discretion. In the event this Note, or any part hereof, is
collected by or through an attorney-at-law, Borrower agrees to pay all costs of collection
including, but not limited to, reasonable attorneys’ fees.

ARTICLE II — GENERAL CONDITIONS

     2.01 No Waiver: Amendment. No failure to accelerate the debt evidenced hereby by reason
of default hereunder, acceptance of a partial or past due payment, or indulgences granted from time
to time shall be construed (i) as a novation of this Note or as a reinstatement of the indebtedness
evidenced hereby or as a waiver of such right of acceleration or of the right of Lender thereafter
to insist upon strict compliance with the terms of this Note, or (ii) to prevent the exercise of
such right of acceleration or any other right granted hereunder or by any applicable laws; and
Borrower hereby expressly waives the benefit of any statute or rule of law or equity now provided,
or which may hereafter be provided, which would produce a result contrary to or in conflict with
the foregoing. No extension of the time for the payment of this Note or any installment due
hereunder, made by agreement with any person now or hereafter liable for the payment of this Note
shall operate to release, discharge, modify, change or affect the original liability of Borrower
under this Note, either in whole or in part unless Lender agrees otherwise in writing. This Note
may not be changed orally, but only by an agreement in writing signed by the party against whom
enforcement of any waiver, change, modification or discharge is
sought.

     2.02 Waivers. Presentment for payment, demand, protest and notice of demand, protest
and nonpayment and all other notices are hereby waived by Borrower. Borrower hereby further
waives and renounces, to the fullest extent permitted by law, all rights to the benefits of
any moratorium, reinstatement, marshalling, forbearance, valuation, stay, extension, redemption,
appraisement, exemption and homestead now or hereafter provided by the Constitution and laws of the
United States of America and of each state thereof, both as to itself and in and to all of its
property, real and personal, against the enforcement and collection of the obligations evidenced by
this Note or the other Loan Documents.

     2.03
Limit of Validity. The provisions of this Note and of all agreements between
Borrower and Lender, whether now existing or hereafter arising and whether written or oral, are
hereby expressly limited so that in no contingency or event whatsoever, whether by reason of demand
or acceleration of the maturity of this Note or otherwise, shall the amount paid, or agreed to be
paid (“Interest”), to Lender for the use, forbearance or detention of the money loaned
under this Note exceed the maximum amount permissible under applicable law. If, from any
circumstance whatsoever, performance or fulfillment of any provision hereof or of any agreement
between Borrower and Lender shall, at the time performance or fulfillment of such provision shall
be due, exceed the limit for Interest prescribed by law or otherwise transcend the limit of
validity prescribed, by applicable law, then ipso facto the obligation to be
performed or fulfilled shall be reduced to such limit and if, from any circumstance whatsoever,
Lender shall ever

11

 

receive anything of value deemed Interest by applicable law in excess of the maximum lawful
amount, an amount equal to any excessive Interest shall be applied to the reduction of the
principal balance owing under this Note in the inverse order of its maturity (whether or not then
due) or at the option of Lender be paid over to Borrower, and not to the payment of Interest. All
Interest (including, but not limited to, any amounts or payments deemed to be Interest) paid or
agreed to be paid to Lender shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full period until payment in full of the principal
balance of this Note so that the Interest thereof for such full period will not exceed the maximum
amount permitted by applicable law. This Section 2.03 will control all agreements between Borrower
and Lender.

     2.04 Use of Funds. Borrower hereby warrants, represents and covenants that the
loan evidenced hereby is for business or commercial purposes only, and no advance of funds
evidenced hereby shall be used by Borrower for personal, family, agricultural or household
purposes. The foregoing shall not, however, prohibit Borrower from distributing surplus proceeds
(after payment from time to time of ail amounts that Borrower is required to pay pursuant to the
Loan Documents) to the owners of equity interests in Borrower.

     2.05 Unconditional Payment. Borrower is and shall be obligated to pay principal,
interest and any and all other amounts which become payable hereunder or under the other Loan
Documents absolutely and unconditionally and without any abatement, postponement, diminution or
deduction and without any reduction for counterclaim or setoff. In the event that at any time any
payment received by Lender hereunder shall be deemed by a court of competent jurisdiction to have
been a voidable preference or fraudulent conveyance under any bankruptcy, insolvency or other
debtor relief law, then the obligation to make such payment shall survive any cancellation or
satisfaction of this Note or return thereof to Borrower and shall not be discharged or satisfied
with any prior payment thereof or cancellation of this Note, but shall remain a valid and binding
obligation enforceable in accordance with the terms and provisions hereof, and such payment shall
be immediately due and payable upon demand.

ARTICLE III— MISCELLANEOUS

     3.01 Miscellaneous. This Note shall be interpreted, construed and enforced according
to the laws of the State of New York. The terms and provisions hereof shall be binding upon and
inure to the benefit of Borrower and Lender and their respective heirs, executors, legal
representatives, successors, successors-in-title and assigns, whether by voluntary action of the
parties or by operation of law. As used herein, the terms “Borrower” and “Lender”
shall be deemed to include their respective heirs, executors, legal representatives, successors,
successors-in-title and assigns, whether by voluntary action of the parties or by operation of law.
If Borrower consists of more than one person or entity, each shall be jointly and severally
liable to perform the obligations of Borrower under this Note. All personal pronouns used herein,
whether used in the masculine, feminine or neuter gender, shall include all other genders; the
singular shall include the plural and vice versa. Titles of articles and sections are for
convenience only and in no way define, limit, amplify or describe the scope or intent of any
provisions hereof. Time is of the essence with respect to all provisions of this Note. This Note
and the other Loan Documents contain the entire agreements between the parties hereto relating to
the subject matter hereof and thereof and all prior agreements relative hereto and thereto which
are not contained herein or therein are terminated.

     3.02 Severance of Note. Lender shall have the unrestricted right at any time or from
time to time to sell, dispose of, transfer, pledge, participate, syndicate or
otherwise transfer the Loan, and/or securitize all or any portion of Lender’s interest in the
Loan at any time, or to cause this Note and the Security Instrument to be split into two or more
notes, parts or interests, in whatever proportion Lender deems appropriate (i.e., an A/B or A/B/C
structure), which may be in the form of pari passu interests, senior and junior interests, or other
interests, and thereafter to sell, assign, participate, syndicate or securitize all or any part of
either such severed or split note and mortgage. Borrower agrees to cooperate in all reasonable
respects with Lender, at Lender’s sole cost and expense, to facilitate any such action, the
transfer or disposition of the Loan, the rating of the Loan or of a securitization in which the

12

 

Loan is included. Borrower’s cooperation obligation shall continue until the Loan has been repaid
in full, and shall include, without limitation, the following as each may be reasonably required
from time to time by Lender, Servicer, or any holder of the note evidencing Borrower’s obligations
pursuant to the Loan:

          (a) Consenting to non-material modifications to the Loan Documents or to
Borrower’s organizational documents, which modifications shall not increase Borrower’s obligations
nor diminish any of Borrower’s rights or benefits in connection with the Loan; and

          (b) Executing any additional documents required by Lender to effectuate such severance,
including, without limitation, a splitter and modification agreement, replacement notes,
intercreditor agreements and replacement security deeds, mortgages or deeds of trust in the
aggregate amount of the principal amount of the indebtedness evidenced hereby, which may include,
but not be limited to, revising the interest rate for each note component, reallocating the
principal balances of the severed notes and/or the components, increase or decrease the monthly
debt service payments for each component or eliminate the component structure and/or the multiple
note structure of the Loan (including the elimination of the related allocations of principal and
interest payments), provided that the outstanding principal balance of all components immediately
after the effective date of such modification equals the outstanding principal balance of this Note
immediately prior to such modification and the weighted average of the interest rates for all
components immediately after the effective date of such modification equals the interest rate of
this Note immediately prior to such modification.

[NO FURTHER TEXT ON THIS PAGE]

13

 

     IN WITNESS WHEREOF, Borrower has executed this Note under seal as of the date first
above written.

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	 	 	FIRST PARK TEN COCO SAN ANTONIO, L.P., a

     Delaware limited partnership
	 
	 	 	 	 
	 

	 	By:
	 	FIRST PARK TEN COCO SAN ANTONIO GP LLC, a

     Delaware limited liability company,
	 

	 	 	 	     its general partner

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Arthur S. Cooper	 	 
	 	 	 	 	 	 	 
	 	 	Name: Arthur S. Cooper	 	 
	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	ss.:
	COUNTY OF FAIRFAX

	 	 	 	 	)	 	 	 

     BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this
day personally appeared Arthur S. Cooper, in his capacity as the Vice President of FIRST PARK TEN
COCO SAN ANTONIO GP LLC, a Delaware limited liability company, GENERAL PARTNER of FIRST PARK TEN
COCO SAN ANTONIO, L.P., a Delaware limited partnership, known to me to be the person whose name
is subscribed to the foregoing instrument, and, being by me first duly sworn, declared and
acknowledged to me under oath that he executed the same for the purposes and consideration,
therein expressed and in the capacity therein stated, as the act and deed of said limited
liability company, on behalf of the limited partnership.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this                      day of November, 2006.

	 	 	 
	 

	 	/s/ Shannon Soleau
	 

	 	 
	 

	 	Notary Public in and for Fairfax County,
	 

	 	Commonwealth of Virginia
	 

	 	Commission Expires: May 31, 2009

 

 

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	 	 	SLEE GRAND PRAIRIE, L.P., a

     Delaware limited partnership
	 
	 	 	 	 
	 

	 	By:
	 	GCC ACQUISITION HOLDINGS LLC, a

     Delaware limited liability company,
	 

	 	 	 	     its general partner

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Arthur S. Cooper	 	 
	 	 	 	 	 	 	 
	 	 	Name: Arthur S. Cooper	 	 
	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	ss.:
	COUNTY OF FAIRFAX

	 	 	 	 	)	 	 	 

     BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this
day personally appeared Arthur S. Cooper, in his capacity as the Vice President of GCC ACQUISITION
HOLDINGS LLC, a Delaware limited liability company, GENERAL PARTNER of SLEE GRAND
PRAIRIE, L.P., a Delaware limited partnership, known to me to be the person whose name is
subscribed to the foregoing instrument, and, being by me first duly sworn, declared and
acknowledged to me under oath that he executed the same for the purposes and consideration therein
expressed and in the capacity therein stated, as the act and deed of said limited liability
company, on behalf of the limited partnership.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this                      day of November, 2006.

	 	 	 
	 

	 	/s/ Shannon Soleau
	 

	 	 
	 

	 	Notary Public in and for Fairfax County,
	 

	 	Commonwealth of Virginia
	 

	 	Commission Expires: May 31, 2009

 

 

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	OB MIDWAY NC GLADSTONE COMMERCIAL LLC, a

     Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Arthur S. Cooper	 	 
	 	 	 	 	 	 	 
	 	 	Name: Arthur S. Cooper	 	 
	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	ss.:
	COUNTY OF FAIRFAX

	 	 	 	 	)	 	 	 

I, Shannon Soleau, a notary public of the above county and state, do hereby certify that
Arthur S. Cooper, personally came before me this day and acknowledged that he is the Vice President
of OB MIDWAY NC GLADSTONE COMMERCIAL LLC, a Delaware limited liability company and that he, being
authorized to do so, voluntarily executed the forgoing document for the purposes stated therein on
behalf of said business trust and limited liability company, as Vice President of said limited
liability company.

     Witness my hand and official stamp or seal this                      day of November, 2006.

[NOTARIAL SEAL]

	 	 	 
	 

	 	/s/ Shannon Soleau
	 

	 	 
	 

	 	Notary Public

My Commission Expires: May 31, 2009exv10w25

 

Exhibit 10.25

PRODUCTS LICENSE AND DISTRIBUTION AGREEMENT

This Product License and Distribution Agreement (“Agreement”) is made and entered into as of the
November 16, 2001, (the “Effective Date”), by and between Dell Products L.P., a Texas limited
partnership, by and on behalf of itself and Dell Computer Corporation, a Delaware corporation, and
the other affiliates of Dell Computer Corporation (collectively referred to as “Dell”), with its
principal place of business at One Dell Way, Round Rock, Texas 78682, and Network Specialists,
Inc., a New Jersey corporation, with its principal place of business at 2 Hudson Place, Hoboken,
New Jersey 07030 (“Distributor”).

1. LICENSE AND DISTRIBUTION TERMS AND DEFINITIONS

	 	1.1	 	Definitions. The following terms shall have the following meanings
within this Agreement:

(a) “Customer” shall mean an end-user of the Licensed Products who purchases a
license to the Licensed Products from Dell for their own use.

(b) “Distributor’s Trademarks” shall mean those trademarks, trade names, service
marks, slogans, designs, distinctive advertising, labels, logos, and other
trade-identifying symbols as are or have been developed and used with the Licensed
Products by Distributor or any of its subsidiaries or affiliate companies anywhere
in the world.

(c) “Documentation” shall mean the documentation which is typically included by
Distributor in the “retail” versions of its standard packaging of the Licensed
Products.

(d) “Licensed Products” shall mean the software listed in Exhibit
A and Documentation.

	 	1.2	 	Grant of License. In consideration for Dell paying to Distributor
the royalty fee per license set forth in Exhibit A, Distributor hereby grants
to Dell a world-wide, non-exclusive right and license to sub-license and distribute
the Licensed Products to its Customers. Dell may not modify or attempt to modify the
Licensed Products, nor create derivative works, nor may Dell sell, rent, sub-license,
lease, timeshare or transfer the Licensed Products to any third party, except as may
be expressly authorized under this Agreement. Distributor represents and warrants
that it has all right, title and interest necessary for it to enter into this
Agreement and to provide the Licensed Products to Dell under the terms and conditions
set forth in herein.

1

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

	 	1.3	 	Grant of Intellectual Property License. Distributor hereby grants
Dell a non-exclusive, non-transferable, royalty-free, worldwide right and license to
utilize the Distributor’s Trademarks in connection with advertising, promotion, and
license of the Licensed Products, subject to any trademark usage guidelines provided
by Distributor to Dell from time to time. Dell will use commercially reasonable
efforts to avoid any action that materially diminishes the value of Distributor’s
Trademarks and agrees that the Distributor’s Trademarks used and owned by Distributor
shall remain the exclusive property of Distributor or its designees and that it shall
not acquire any rights in or to any Distributor’s Trademarks by virtue of its use
thereof pursuant to this Agreement.
	 
	 	1.4	 	No Exclusivity. Dell shall have no obligation to purchase the
Products pursuant hereto. Furthermore, Dell may purchase products that are the same as
or similar to the Licensed Products from sources other than Distributor. Nothing
under the foregoing, however, shall be construed to be a license under Distributor’s
patents, copyrights, trademarks, trade secrets and other intellectual property rights
except as specifically granted in other provisions of this Agreement. This Agreement
does not constitute an order.
	 
	 	1.5	 	End User License Agreements. Dell may distribute and/or sublicense
the Licensed Products by providing each Customer with an end user license agreement in
a form substantially similar to that provided by Distributor and attached as
Exhibit B1 and Exhibit B2. 
	 
	 	1.6	 	Ownership and Confidentiality. All patents, copyrights, trademarks,
trade secrets and other ownership rights in the Licensed Products are and shall remain
the property of Distributor. The source code of the Licensed Products, which is not
provided to Dell or its Customers, and all information regarding the design, structure
or internal operation of the Licensed Products are valuable trade secrets of
Distributor (“Confidential Product Information”). Dell shall not sell, transfer,
publish, disclose, display or otherwise permit access to any Confidential Product
Information by any third party, except as may be expressly authorized under this
Agreement. The Licensed Products may not be reverse-engineered, decompiled or
disassembled.
	 
	 	1.7	 	Support and Maintenance. NSI shall provide at no additional charge,
product support to each Customer for the first year a Licensed Product is licensed to
such Customer. Thereafter, product support of the Licensed Product shall be provided
to each Customer who has elected to purchase an Annual Support and Maintenance Renewal
License for each Licensed Product. The royalty fee for such Annual Support and
Maintenance Contract for each Customer shall be paid to Distributor as set forth in
the Exhibit A.
	 
	 	1.8	 	Limited Warranty. Distributor warrants that the Licensed Software
will materially comply to Distributor’s then-current published specifications for the
licensed version of the Licensed Products To the extent that Distributor becomes
aware of any significant defect or functional issue, Distributor shall use best

2

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

efforts to remedy any such defects or functional issues in as prompt a manner as is
commercially possible. OTHER THAN THE FOREGOING, DISTRIBUTOR MAKES NO WARRANTY,
EXPRESS OR IMPLIED AND ALL OTHER WARRANTIES, INCLUDING WITHOUT LIMITATION THE
WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY
DISCLAIMED. DISTRIBUTOR DOES NOT WARRANT THAT THE LICENSED PRODUCTS WILL MEET DELL
OR ITS CUSTOMER’S REQUIREMENTS OR THAT THE OPERATION OF THE LICENSED PRODUCTS WILL
BE UNINTERRUPTED OR ERROR FREE. Dell and its Customers are solely responsible for
the selection of the Licensed Software to achieve its intended results and for the
results actually obtained.

	 	1.9	 	Ordering. Dell will place orders via fax or Email or other
electronic means with Distributor so as to facilitate “expedites” or other special
orders on an ad hoc basis. As long as an order is placed by Dell by 6:00 p.m.
prevailing Central time, Distributor shall confirm its acceptance or rejection of a
manual order via fax or e-mail within 8 business hours of Distributor’s receipt of the
order. Upon acceptance of the order, Distributor must include in its fax or Email
confirmation, at a minimum, the invoice and airbill numbers and carrier information
for the order.
	 
	 	1.10	 	Orders. An “Order” will consist of the following information:

	 		 	DellWare PO Number (Customer’s Dell Order Number)
	 		 	Customer PO Number
	 		 	Shipping Method
	 		 	Sku
	 		 	Manufacturer Part Number
	 		 	Quantity Ordered
	 		 	Cost to DellWare
	 		 	Customer Ship-To Address (Customer P# must be included in the ship-to
label).
	 		 	If serial numbers are required, an asterisk (*) will be placed in front of
the manufacturer part number.

	 	1.11	 	Product Shipment. All Orders placed by Dell, during business hours,
in accordance with this Agreement and accepted by Distributor by 6.00 p.m. prevailing
Central time on a business day shall be completely filled and shipped by Distributor
(or made available to Dell’s designated carrier as the case may be) on that same
business day, unless otherwise agreed to by both parties. If an Order is accepted by
Distributor after 6:00 p.m. prevailing Central time on a business day, then
Distributor shall fill and ship the Order no later than the next business day.
	 
	 	1.12	 	Packing Slip Requirements. The following information should appear
on the packing slip accompanying all Orders:

3

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

	 		 	DellWare PO Number (Customer’s Dell order number)
	 		 	Customer PO Number
	 		 	Shipping Method
	 		 	Dell’s Return Policy: “You may return your order for any reason within 30
days of receipt. Please call Dell customer service at 1-800-847-4098 for a
return authorization number.” (or such other text regarding its then-current
return policy as Dell may provide to Distributor from time to time)
	 		 	Dell Return address: Dell, 8801 Research Blvd., Austin TX 78758,
1-800-847-4098

	 	1.13	 	Shipping Label Requirements. The following information should appear
on the shipping label for all orders:

	 		 	DellWare PO Number (Customer’s Dell order number)
	 		 	Customer PO Number- located with customer address
	 		 	Return address: Dell Computer, address of originating warehouse

	 	1.14	 	Service and Support. Distributor shall make available to Dell
(through at least one toll-free 800 or 888 telephone number and e-mail), *, an
adequate number of trained and qualified representatives to answer inquiries and
perform tracking services with respect to all Orders placed by Dell, including lost
shipments, short shipments, billing errors, stock balancing, expedites, defective
Products replacement Products, damaged shipments and mis-shipments. Such service and
support shall be made available to Dell between the hours of * prevailing Central
time.
	 
	 	1.15	 	Freight. Distributor shall set up an account with each of its
carriers that allows Dell to directly access in real time (or as close to real time as
possible) each carrier’s “214 EDI” transmissions relating to shipping status
information for all Orders. Distributor or its designated carriers shall ship all
Orders within the United States on a next business day delivery basis.
	 
	 	1.16	 	Shipment Discrepancies. Short shipment or lost shipment Product
credits will be credited the next business day after Dell has reported the problem to
the Distributor. Full credit for Products will be given for short shipments or lost
shipments.
	 
	 	1.17	 	Backorders and End of Life Products. Distributor shall immediately
notify Dell when stock is available for a Product that is being held on backorder, but
shall not release the Order for shipment until it has received written or electronic
approval from Dell to do so. Distributor shall provide Dell with at least * advance
written notice of any Product that will be discontinued or has an end of life status.
	 
	 	1.18	 	Returns Policy. Dell may return any Products purchased from
Distributor within * of the invoice date; provided, however, that Dell may return any
defective Product purchased from Distributor within * of the invoice date. Dell must
obtain a Return Material Authorization number (“RMA”) for each Product that is

4

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

returned to the Distributor. RMA’s will be faxed to Dell within * of such request.
Distributor shall credit the amounts for returned Products to Dell’s account on the
same day that Distributor receives the returned Products in its warehouse and shall
promptly send written confirmation of such credits to Dell’s Accounts Receivable
Department. Distributor shall not charge Dell any restocking fees for any Products
that are returned to Distributor in accordance with this Section.

2. PRICING

	 	2.1	 	Pricing. License Fees shall be as set forth in Exhibit A, or
such other means as determined and agreed by the parties in writing subsequent to the
execution of this Agreement.
	 
	 	2.2	 	Most Favored Customer. Distributor represents and warrants that the
prices for the Products shall not be less favorable than prices applicable to sales by
Distributor to any other customer purchasing like quantities of substantially
comparable products. If at any time during the term of this Agreement Distributor
accords to any other such customer more favorable prices, Distributor shall
immediately offer to sell the Products to Dell at equivalent prices accorded to such
other customer.
	 
	 	2.3	 	Volume Rebate Schedule. Distributor shall pay to Dell, in accordance
with Exhibit D, certain amounts based on the total volume of Products
purchased by Dell (“Volume Rebate”) on a * basis * or any pro rated amount thereof if
this Agreement has not been in effect for a full *. All Volume Rebates shall be paid
to Dell in the form of a check payable to Dell Products, L.P. within * after the end
of each calendar year and shall be accompanied by a report detailing the volumes of
Products purchased by Dell during the relevant period and the calculation of the
Volume Rebate. Distributor shall pay to Dell any Volume Rebates based on the schedule
(see Exhibit D).
	 
	 	2.4	 	Terms. Payment terms will be net * from Dell’s receipt of an invoice
from Distributor.

3. QUARTERLY BUSINESS REVIEWS AND ASSESSMENT

	 	3.1	 	Quarterly Business Reviews. On a quarterly basis, Dell and
Distributor will hold Quarterly Business Reviews to review: 1) Distributor’s
performance against the service level standards and operations standards in place
between the parties, as well as other items, including but not limited to the pricing
and quality of the Products, the transmission, fulfillment, and delivery of Products;
2) to review success of lead generation and revenue creation; to define demand
creation activities for the next quarter, and to review the next quarter’s forecast;
and (3) the Product returns process. Distributor agrees to provide reports as
reasonably requested by Dell to support these discussions. Meetings will be
held in Austin, Texas, unless otherwise mutually agreed to by the parties.

5

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

requested by Dell to support these discussions. Meetings will be
held in Austin, Texas, unless otherwise mutually agreed to by the parties.

	 	3.2	 	Escalation Process. In the event that a specific operational issue
arises or systemic operational issues arise during the Term of this Agreement, the
parties agree that the contact list set forth in attached Exhibit C will be
the escalation path for Dell personnel and management to address and resolve such
issues.

4. TERM AND TERMINATION

	 	4.1	 	Term. This Agreement will begin as of the Effective Date and will
continue for a period of one (1) year, unless earlier terminated in accordance with
Section 4.2 below. The Term will be renewed automatically for successive one (1) year
periods unless either party notifies the other party in writing of its intent not to
renew the Agreement at least sixty (60) days prior to the end of the then current
term.
	 
	 	4.2	 	Termination. Either party may terminate this Agreement for any
reason upon sixty (60) days prior written notice to the other party. Either party may
terminate this Agreement for cause: (i) upon thirty (30) days prior written notice of
a material breach, if the breach has not been cured within the thirty (30) day period
(except as provided below); or (ii) immediately upon written notice to the other
party, (a) if the other party attempts to make an assignment in violation of the terms
of this Agreement, (b) if the other party declares insolvency or bankruptcy or a
petition is filed in any court and is not dismissed in ninety (90) days to declare the
other party bankrupt or for the other part’s reorganization under the United States
bankruptcy act of any similar statute; or (c) if the other party consents to the
appointment of a trustee in bankruptcy or a receiver of similar entity.

5. ADDITIONAL TERMS

	 	5.1	 	Dispute Process. Before either party initiates a lawsuit against the
other relating to a dispute under this Agreement or the other party’s performance
thereunder, the parties agree to work in good faith to resolve between them such
disputes and claims. To this end, either party may request, after informal
discussions have failed to resolve a dispute or claim, that each party designate an
officer or other management employee with authority to bind the party to meet in good
faith and attempt to resolve the dispute. During their discussions, each party will
honor the other’s reasonable requests for information relating to the dispute or
claim.

	 	5.2	 	Assignment. This Agreement may not be assigned, in whole or in part,
by either party without the prior written consent of the other party, except that each
party may assign the Agreement to a direct or indirect parent or subsidiary upon prior
written notice to the other party.

6

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

 

	 	5.3	 	Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the State of Texas. The parties are independent
contractors and neither party is an employee, agent, partner, or joint venture of
the other.

	 	5.4	 	Compliance.

5.4.1 Since Dell transacts business with the United States government, Distributor
must comply with applicable laws and Federal Acquisition Regulations (“FARs”) in
order to do business with Dell. Distributor, therefore, represents and warrants
that it will comply with applicable FAR regulations. Upon request from
Distributor, and without releasing Distributor from its independent obligations
under this Section, Dell shall endeavor to assist Distributor in identifying which
FARs may be applicable in connection with transactions hereunder. The parties
agree to cooperate with one another to identify applicable FARs to enable
Distributor to comply with its obligations under this Agreement.

5.4.2 The parties, at their respective expense, will comply with all applicable
laws, orders and regulations of any governmental authority with jurisdiction over
their activities in connection with this Agreement and will furnish to each other
any information required to enable a party to comply with applicable laws related
to the Products.

	 	5.5	 	Indemnities.

5.5.1 Distributor agrees to defend, indemnify and hold harmless Dell Products L.P,
Dell Computer Corporation and Dell Computer Corporation’s subsidiaries and
affiliates and their respective directors, officers, employees, agents, customers
and distributors from and against any and all claims, suits, actions, demands,
legal proceedings, liabilities, damages, losses, judgments, authorized settlements,
costs and expenses, including without limitation attorney’s fees, arising out of or
in connection with any alleged or actual:

	 	(i)	 	infringement by Distributor of a copyright, patent,
trademark, trade secret or other intellectual property right of any third
party where such infringement is not due in whole or in part to any
modification of the Licensed Products or their incorporation with other
software, hardware or apparatus in ways not contemplated by Distributor’s
published specifications for the licensed version of the Licensed Products;

	 	(ii)	 	claim that a Product provided under this Agreement has caused
bodily injury (including death) or has damaged real or tangible personal
property;

	 	(iii)	 	breach of any of Distributor’s warranties contained in this Agreement;

7

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

 

	 	(iv)	 	claim arising out of or relating to Distributor’s provision
of repaired Products that contain used or refurbished parts that are not
clearly and conspicuously labeled as such;
	 
	 	(v)	 	any violation by Distributor of any governmental laws, rules,
ordinances or regulations; and/or
	 
	 	(vi)	 	claim by or on behalf of Distributor’s subcontractors,
materialmen, providers, employees or agents.

Notwithstanding the foregoing, Distributor shall not be responsible to indemnify
any party herein, including any third party, for consequential, indirect or
punitive damages

5.5.2 Distributor will provide the above indemnity even if losses are due, or
alleged to be due, in part to Dell’s concurrent negligence or other fault, breach
of contract or warranty, violation of the Texas Deceptive Trade Practices Act, or
strict liability without regard to fault; provided, however, that Distributor’s
contractual obligation of indemnification shall not extend to the percentage of the
third party claimant’s damages or injuries or the settlement amount attributable to
Dell’s negligence or other fault, breach of contract or warranty, or breach of the
Texas Deceptive Trade Practices Act, or to strict liability imposed upon Dell as a
matter of law.

5.5.3 In the event of any such claims, Dell shall: (i) promptly notify Distributor,
(ii) provide Distributor a first option to respond, defend and litigate said claims
with counsel of Distributor’s selection (iii) cooperate with Distributor in the
defense thereof, and (iv) not settle any such claims without Distributor’s consent,
which Distributor agrees not to unreasonably withhold.

5.5.4 If Distributor becomes aware of an infringement claim that is being made or
appears likely to be made about a Product, Distributor shall promptly notify Dell
of such claim. Dell may, at its option, return or cancel any Orders for such
Products for a full credit or refund of the purchase price.

5.6 Liability.

5.6.1 EXCEPT AS SET FORTH BELOW NEITHER PARTY SHALL BE LIABLE FOR ANY LOST PROFITS,
LOST SAVINGS OR ANY OTHER INCIDENTAL, INDIRECT, PUNITIVE, OR CONSEQUENTIAL DAMAGES
UNDER ANY PART OF THIS AGREEMENT EVEN IF ADVISED OR AWARE OF THE POSSIBILITY OF
SUCH DAMAGES.

8

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

 

	 	5.7	 	Miscellaneous.

5.7.1 Dell shall have full freedom and flexibility in its decisions concerning the
distribution and marketing of the Licensed Product, including, without limitation,
the decision of whether or not to distribute or discontinue distribution of the
Licensed Products. Dell does not guarantee that its marketing of the Licensed
Products will be successful.

5.7.2 Dell may distribute/sell the Licensed Products on a stand-alone basis or in
conjunction with a system sale or lease.

5.7.3 Any confidential information that will be disclosed by either party related
to this Agreement shall be disclosed pursuant to the terms and conditions of the
Non-Disclosure Agreement between the parties. The terms and conditions of this
Agreement shall be deemed to be confidential information.

5.7.4 Nothing in this Agreement shall require Dell to purchase from Distributor a
minimum quantity or any or all of its requirements for products that are the same
or similar to the Products. Furthermore, Distributor agrees to cooperate and work
with Dell and any other distributors that Dell may engage in connection with the
provision of Products.

5.7.5 This Agreement and its attached Exhibits/Schedules set forth the entire
agreement and understanding of the parties relating to the subject matter contained
herein, and merges all prior discussions and agreements, both oral and written,
between the parties. Each party agrees that use of pre-printed forms, such as
purchase orders or acknowledgments, is for convenience only and all terms and
conditions stated thereon, except as specifically set forth in this Agreement, are
void and of no effect. Unless otherwise expressly set forth in an Addendum,
Exhibit, Attachment or Schedule, as so designated, in the event of a conflict
between this Agreement and any Addenda, Exhibit, Attachment or Schedule, the terms
of this Agreement shall prevail.

IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized
representatives as of the Effective Date.

	 	 	 	 	 	 	 
	DISTRIBUTOR	 	DELL PRODUCTS L.P.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Scott Meyers
	 	By:
	 	/s/ Bill Morris
	 

	 	 

	 	 	 	 

	 
	 	 	 	 	 	 
	Name:

	 	Scott Meyers
	 	Name:
	 	Bill Morris
	 

	 	 

	 	 	 	 

9

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

 

	 	 	 	 	 	 	 
	Title:

	 	Chief Operating Officer
	 	Title:
	 	Director, Dell Software
	 

	 	 

	 	 	 	 

	 
	 	 	 	 	 	 
	Date:

	 	11/14/01
	 	Date:
	 	12/10/01
	 

	 	 

	 	 	 	 

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

10

*     Denotes confidential information that has been omitted from the exhibit and filed
separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933.

 

 

EXHIBIT A

Licensed Software:

	 		 	Double-Take®: Real time transaction based backup software.
	 
	 		 	GeoCluster: adds data redundancy to MSCS Clusters (Microsoft Cluster Services) by
creating replicated disks to all available cluster nodes.

Royalty:

	 		 	The discount for this Agreement is:

	 		 	* off of the then-current list price for all Licensed Programs listed.
	 
	 		 	* off the then-current list price for all Annual Maintenance Renewals
sold to Customers.
	 
	 		 	* off of the then-current list price for all Training scheduled for
internal use.
	 
	 		 	* off of the then-current list price for all Customer training passed
through to NSI.

11

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

 

EXHIBIT B1

END USER LICENSE AGREEMENT

DOUBLE-TAKE LICENSE AGREEMENT

This purchased version may be used on only one server. NSI Software hereby grants you, the user, a
limited, non-transferable license to use this copy of the software as specified by this license
agreement. By opening, installing, and using this software you signify agreement to all terms of
this license.

You agree that this software remains the property of NSI Software and that you only have a license
to use this software. NSI Software reserves all other rights to the software.

PERMITTED USES-YOU MAY:

	•	 	Use the software on a computer used as a server or its replacement.

	•	 	Install the software onto a permanent storage device, such as a hard disk, for use by you on your computer.

	•	 	Make and maintain backup copies of the software, provided they are used only for your own backup purposes and
you keep possession of all backup copies. This license grants usage of Double-Take for only one server.

USES NOT PERMITTED-YOU MAY NOT:

	•	 	Copy the software except as permitted herein.

	•	 	Make copies of the manual.

	•	 	Rent, lease, sub-license, time-share or sell the software or the manual.

Any breach of one or more of the provisions of this agreement shall constitute an immediate
termination of your license under this Agreement.

You may not reverse engineer, decompile, disassemble, or otherwise attempt directly or indirectly
to discover, use, disclose or transfer any source code or other confidential information contained
in the software.

NSI SOFTWARE MAKES AND YOU RECEIVE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL NSI
SOFTWARE OR ITS SUPPLIERS BE LIABLE FOR ANY

12

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

 

CONSEQUENTIAL, SPECIAL, INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES RELATED TO THE SOFTWARE OR ITS
USE, EVEN IF NSI SOFTWARE IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

NSI and Double-Take are registered trademarks of Network Specialists Inc. All other products are
trademarks of their respective companies.

(c) 1996-2001 NSI Software

13

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

 

EXHIBIT B2

END USER LICENSE AGREEMENT

GEOCLUSTER LICENSE AGREEMENT

This purchased version may be used on only one server. NSI Software hereby grants you, the user, a
limited, non-transferable license to use this copy of the Software as specified by this license
agreement. By opening, installing, and using this Software you signify agreement to all terms of
this license. You agree that this Software remains the property of NSI Software and that you only
have a license to use this Software. NSI Software reserves all other rights to the software.

PERMITTED USES-YOU MAY:

	•	 	Use the Software on a computer used as a server or its replacement.

	•	 	Install the Software onto a permanent storage device, such as a hard disk, for use by you on your server.

	•	 	Make and maintain backup copies of the Software, provided they are used only for your own backup purposes and
you keep possession of all backup copies. This license grants usage of GeoCluster for only one server.

USES NOT PERMITTED-YOU MAY NOT:

	•	 	Copy the Software except as permitted herein.

	•	 	Make copies of the manual.

	•	 	Rent, lease, sub-license, time-share or sell the Software or the manual.

Export Restrictions. You acknowledge that this Software is subject to the export laws of the United
States and agree to comply at all times with such laws. This Software or any components, data, code
or technology thereof may not be exported except in full compliance with all United States and
other applicable laws and regulations. You hereby represent and warrant that you: (A) are not a
citizen or resident of Cuba, Iraq, Libya, Sudan, North Korea, Iran, or Syria, and if a legal
entity, (B) are not an entity formed under the laws of Cuba, Iraq, Libya, Sudan, North Korea, Iran,
or Syria, or (C) are not included on the U.S. Treasury Department’s list of Specially Designated
nationals or the U.S. Commerce Department’s Table of Deny Orders.

Any breach of one or more of the provisions of this agreement shall constitute an immediate
termination of your license under this Agreement. You may not reverse

14

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

 

engineer, decompile, disassemble, or otherwise attempt directly or indirectly to discover, use,
disclose or transfer any source code or other confidential information contained in the Software.

NSI SOFTWARE MAKES AND YOU RECEIVE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL NSI
SOFTWARE OR ITS SUPPLIERS BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, INDIRECT OR
PUNITIVE DAMAGES RELATED TO THE SOFTWARE OR ITS USE. EVEN IF NSI SOFTWARE IS ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

NSI and Double-Take are registered trademarks of Network Specialists Inc. Double-Take GeoCluster
and GeoCluster are trademarks of NSI Software. All other products are trademarks of their
respective companies.

(c) 2000-2001 NSI Software

15

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

 

EXHIBIT C

ESCALATION CONTACT LIST

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Sales/Customer Service:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	NSI Operations:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Global Account Manager
	 	*
	 	*	 	 	 	 	 	 
	 

	 	Inside Sales:
	 	*
	 	*	 	 	 	 	 	 
	 

	 	Billing/Accounting:
	 	*
	 	 	 	*	 	 	 	 
	 

	 	Shipping:
	 	*
	 	*	 	 	 	 	 	 
	 

	 	Tech Support:
	 	 	 	 	 	 	 	*	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Dell Operations:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	*, Product Marketing Manager	 	 	 	 	 	 	 	 	 	 
	 

	 	*	 	 	 	 	 	 	 	 	 	 
	 

	 	*	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	*	 	 	 	 	 	 	 	 	 	 
	 

	 	Dell S&P Operations	 	 	 	 	 	 	 	 	 	 
	 

	 	*	 	 	 	 	 	 	 	 	 	 
	 

	 	*	 	 	 	 	 	 	 	 	 	 

16

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

 

EXHIBIT D

VOLUME REBATE SCHEDULE

*.

17

*     Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request,
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933.

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