Document:

<PAGE>

________________________________________________________________________________

                                 Exhibit 10.21
                                 -------------

                               CREDIT AGREEMENT
                          (Capital One Realty, Inc.)

                         Dated as of September 3, 1999

                                     Among

                  First Security Bank, National Association,
                          not individually, except as
                           expressly stated herein,
                          but solely as Owner Trustee
                      for Capital One Realty Trust 1998-1
                                 as Borrower,

                              The Several Lenders
                       from Time to Time Parties Hereto,

                                      and

                             BANK OF AMERICA, N.A.
                            as Administrative Agent

________________________________________________________________________________
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
<S>                                                                                       <C>
SECTION 1  DEFINITIONS..................................................................     1
     1.1 Definitional Provisions........................................................     1

SECTION 2  AMOUNT AND TERMS OF COMMITMENTS..............................................     2
     2.1 Commitments....................................................................     2
     2.2 Notes..........................................................................     2
     2.3 Procedure for Borrowing........................................................     2
     2.4 Facility Fee...................................................................     3
     2.5 Termination or Reduction of Commitments........................................     4
     2.6 Prepayments and Payments.......................................................     4
     2.7 Conversion and Continuation Options............................................     5
     2.8 Interest Rates and Payment Dates...............................................     5
     2.9 Computation of Interest........................................................     6
     2.10 Pro Rata Treatment and Payments...............................................     7
     2.11 Increased Costs, Illegality, etc..............................................     7
     2.12 Funding Indemnity.............................................................     9
     2.13 Taxes.........................................................................    10
     2.14 Notice of Amounts Payable; Mandatory Assignment...............................    11

SECTION 3  REPRESENTATIONS AND WARRANTIES...............................................    12
     3.1 Due Organization, etc..........................................................    12
     3.2 Authorization; No Conflict.....................................................    13
     3.3 Enforceability, Etc............................................................    13
     3.4 Litigation.....................................................................    13
     3.5 Lessor Liens...................................................................    14
     3.6 Assignment.....................................................................    14
     3.7 Defaults.......................................................................    14
     3.8 Documentation..................................................................    14
     3.9 Use of Proceeds................................................................    14
     3.10 Securities Act................................................................    14
     3.11 Chief Place of Business.......................................................    15
     3.12 Federal Reserve Regulations...................................................    15
     3.13 Investment Company Act........................................................    15

SECTION 4  CONDITIONS PRECEDENT.........................................................    15
     4.1 Conditions to Effectiveness....................................................    15
     4.2 Conditions to Each Loan........................................................    15

SECTION 5  COVENANTS....................................................................    16
     5.1 Other Activities...............................................................    16
     5.2 Ownership of Properties, Indebtedness..........................................    16
     5.3 Disposition of Assets..........................................................    16
</TABLE>

                                       i
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<TABLE>
<S>                                                                                         <C>
     5.4 Compliance with Operative Agreements...........................................    16
     5.5 Further Assurances.............................................................    17
     5.6 Notices........................................................................    17
     5.7 Discharge of Liens.............................................................    17
     5.8 Trust Agreement................................................................    17

SECTION 6  EVENTS OF DEFAULT............................................................    17

SECTION 7  THE ADMINISTRATIVE AGENT.....................................................    20
     7.1 Appointment....................................................................    20
     7.2 Delegation of Duties...........................................................    20
     7.3 Exculpatory Provisions.........................................................    21
     7.4 Reliance by Administrative Agent...............................................    21
     7.5 Notice of Default..............................................................    21
     7.6 Non-Reliance on Administrative Agent and Other Lenders.........................    22
     7.7 Indemnification................................................................    22
     7.8 Administrative Agent in Its Individual Capacity................................    23
     7.9 Successor Administrative Agent.................................................    23
     7.10 Actions of Administrative Agent on Behalf of Holders..........................    24

SECTION 8  MATTERS RELATING TO PAYMENT AND COLLATERAL...................................    24
     8.1 Collection of Payments and Other Amounts.......................................    24
     8.2 Certain Remedial Matters.......................................................    27
     8.3 Release of Properties, etc.....................................................    27
     8.4 Excepted Payments..............................................................    28

SECTION 9  MISCELLANEOUS................................................................    28
     9.1 Amendments and Waivers.........................................................    28
     9.2 Notices........................................................................    29
     9.3 No Waiver; Cumulative Remedies.................................................    30
     9.4 Survival of Representations and Warranties.....................................    30
     9.5 Payment of Expenses and Taxes..................................................    31
     9.6 Successors and Assigns; Participations and Assignments.........................    31
     9.7 Participations.................................................................    31
     9.8 Assignments....................................................................    32
     9.9 The Register; Disclosure; Pledges to Federal Reserve Banks.....................    34
     9.10 Adjustments; Set-off..........................................................    34
     9.11 Counterparts..................................................................    35
     9.12 Severability..................................................................    35
     9.13 Integration...................................................................    36
     9.14 GOVERNING LAW.................................................................    36
     9.15 Submission To Jurisdiction; Waivers...........................................    36
     9.16 Acknowledgments...............................................................    36
     9.17 WAIVERS OF JURY TRIAL.........................................................    37
     9.18 Nonrecourse...................................................................    37
</TABLE>

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<PAGE>

<TABLE>
<S>                                                                          <C>
     9.19 USURY SAVINGS PROVISION.........................................    38
</TABLE>

SCHEDULES

Schedule 1.1   Commitments and Addresses of Lenders

EXHIBITS

Exhibit A-1    Form of Tranche A Note

Exhibit A-2    Form of Tranche B Note

Exhibit B      Form of Assignment and Acceptance

                                      iii
<PAGE>

     THIS CREDIT AGREEMENT, dated as of September 3, 1999, is among FIRST
SECURITY BANK, NATIONAL ASSOCIATION, not individually, except as expressly
stated herein, but solely as Owner Trustee for Capital One Realty Trust 1998-1
(the "Owner Trustee" or the "Borrower"), the several banks and other financial
      -------------          --------
institutions from time to time parties to this Agreement (the "Lenders") and
                                                               -------
BANK OF AMERICA, N.A., a national banking association, as a Lender and as
Administrative Agent.

     The parties hereto hereby agree as follows:

                             SECTION 1 DEFINITIONS

          1.1  Definitional Provisions.
               ------------------------

          (a)  Each capitalized term used in this Agreement and not otherwise
defined herein shall have the meaning ascribed thereto in Appendix A to that
certain Participation Agreement dated as of September 3, 1999 (the
"Participation Agreement") among Capital One Realty, Inc., as the Construction
 -----------------------
Agent and the Lessee, Capital One Bank, as the Guarantor, First Security Bank,
National Association, not individually, except as expressly stated therein, but
solely as Owner Trustee under the Capital One Realty Trust 1998-1, the various
banks and other lending institutions parties thereto from time to time, as
Holders, the various banks and other lending institutions parties thereto from
time to time, as Lenders, and Bank of America, N.A., as Agent for the Lenders
and respecting the Security Documents, as Agent for the Lenders and the Holders
to the extent of their interests.

          (b)  Unless otherwise specified therein, all terms described in this
Agreement shall have the defined meanings when used in the other Credit
Documents or any certificate or other document made or delivered pursuant hereto
or thereto.

          (c)  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, and Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

          (d)  All accounting terms used herein shall have the respective
meanings given to them in accordance with GAAP, unless otherwise provided
herein.  All computations and determinations for purposes of determining
compliance with the financial requirements of this Agreement shall be made in
accordance with GAAP, unless otherwise provided herein.

          (e)  The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms or such terms.
<PAGE>

                   SECTION 2 AMOUNT AND TERMS OF COMMITMENTS

          2.1  Commitments.
               -----------

          (a)  Subject to the terms and conditions hereof, each of the Lenders
agrees to make the portion of the Tranche A Loans and the Tranche B Loans to the
Borrower from time to time during the Commitment Period as is set forth adjacent
to such Lender's name for the purpose of enabling the Borrower to purchase the
Properties and to pay Property Acquisition Costs, Property Costs and Transaction
Expenses provided that the aggregate principal amount at any one time
outstanding with respect to each of the Tranche A Loans and the Tranche B Loans
shall not exceed the amount of the Tranche A Commitments and the Tranche B
Commitments respectively. Any prepayments of the Loans, whether mandatory or at
Borrower's election, shall not be subject to reborrowing.

          (b)  The Loans may from time to time be (i) Eurodollar Loans, (ii) ABR
Loans, or (iii) a combination thereof, as determined by the Borrower and
notified to the Administrative Agent in accordance with Section 2.3 and 2.7.  In
the event the Borrower fails to provide notice pursuant to Section 2.3, the Loan
shall be an ABR Loan. Further, any Loan by any Lender in an amount less than
$100,000 shall be an ABR Loan, unless the remaining Available Commitment for
such Lender is less than $100,000, in which case, the Borrower may elect a
Eurodollar Loan for such remaining amount.

          2.2  Notes.
               -----

          The Loans made by each Lender shall be evidenced by promissory notes
of the Borrower, substantially in the form of Exhibit A-1 in the case of the
                                              -----------
Tranche A Loans (each, a "Tranche A Note") or Exhibit A-2 in the case of the
                                              -----------
Tranche B Loans (each, a "Tranche B Note," and with the Tranche A Notes, the
"Notes"), with appropriate insertions as to payee, date and principal amount,
payable to the order of such Lender and in a principal amount equal to the
Tranche A Commitment or Tranche B Commitment, as the case may be, of such
Lender.  Each Lender is hereby authorized to record the date, Type and amount of
each Loan made by such Lender, each continuation thereof, each conversion of all
or a portion thereof to another Type, and the date and amount of each payment or
prepayment of principal thereof on the schedule annexed to and constituting a
part of its Note, and any such recordation shall constitute prima facie evidence
                                                            ----- -----
of the accuracy of the information so recorded, provided that the failure to
                                                --------
make any such recordation or any error in such recordation shall not affect the
Borrower's obligations hereunder or under such Note.  Each Note shall  be dated
the Closing Date,  be stated to mature on the Maturity Date and (iii) provide
for the payment of interest in accordance with Section 2.8.

          2.3  Procedure for Borrowing.
               -----------------------

          (a)  The Borrower may borrow under the Commitments during the
Commitment Period on any Business Day that an Advance may be requested pursuant
to the terms of Section 5.2 of the Participation Agreement, provided that the
                                                            --------
Borrower shall give the

                                       2
<PAGE>

Administrative Agent irrevocable notice (which must be received by the
Administrative Agent (i) prior to 12:00 Noon, Dallas, Texas time, three Business
Days prior to the requested Borrowing Date if all or any part of the requested
Loans are to be Eurodollar Loans, or (ii) prior to 10:00 a.m. Dallas, Texas time
three Business Days prior to the requested Borrowing Date with respect to any
Loans that are to be ABR Loans) specifying (A) the amount to be borrowed (which
on any date shall not be in excess of the then Available Commitments), (B) the
requested Borrowing Date, (C) whether the borrowing is to be of Eurodollar
Loans, ABR Loans or a combination thereof, (D) if the borrowing is to be a
combination of Eurodollar Loans and ABR Loans, the respective amounts of each
Type of Loan and (E) the Interest Period applicable to any Eurodollar Loan;
provided, however, that during the Commitment Period (1) there shall be only one
Interest Period applicable for all amounts outstanding hereunder bearing
interest based on the Eurodollar Rate, (2) such Interest Period shall commence
on the date that the first Eurodollar Loan hereunder is extended and (3) any
amounts thereafter borrowed or converted hereunder during the Commitment Period
which are to bear interest based on the Eurodollar Rate may only be borrowed or
converted on the first day of the Interest Period applicable to Eurodollar
Loans. Pursuant to the terms of the Participation Agreement, the Borrower shall
be deemed to have delivered such notice upon the delivery of a notice by the
Construction Agent or the Lessee containing such required information. Upon
receipt of any such notice from the Borrower, the Administrative Agent shall
promptly notify each Lender thereof. Each Lender will make the amount of its pro
rata share of each borrowing available to the Administrative Agent for the
account of the Borrower at the office of the Administrative Agent specified in
Section 9.2 prior to 12:00 Noon, Dallas, Texas time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent. Such borrowing will then be made available to the Borrower by the
Administrative Agent crediting an account designated, subject to Section 11.1 of
the Participation Agreement, by the Borrower on the books of such office with
the aggregate of the amounts made available to the Administrative Agent by the
Lenders and in like funds as received by the Administrative Agent. No amount of
any Loan which is repaid or prepaid by the Borrower may be reborrowed hereunder.

          (b)  Interest accruing on each Loan during the Construction Period
with respect to any Property shall, subject to the limitations set forth in
Section 5.1(b) of the Participation Agreement be added to the principal amount
of such Loan on the relevant Scheduled Interest Payment Date. On each such
Scheduled Interest Payment Date, the Loan Property Cost and Construction Loan
Property Cost shall be increased by the amount of interest added to the Loans.

          2.4  Facility Fee.
               ------------

          (a)  Promptly after receipt of the payment of the Facility Fee payable
pursuant to Section 9.4 of the Participation Agreement, the Agent shall
distribute such payments to the Lenders and the Holders pro rata in accordance
with their respective Commitments and Holder Commitments.

          (b)  On each Facility Fee Payment Date during the Construction Period,
the Loan Property Cost and Construction Loan Property Cost of each Property
shall be increased by

                                       3
<PAGE>

a pro rata share of any Facility Fees funded on such date with the proceeds of
Loans in accordance with the Operative Agreements.

          2.5  Termination or Reduction of Commitments.
               ---------------------------------------

          (a)  The Borrower shall have the right, upon not less than five (5)
Business Days' written notice to the Administrative Agent, to terminate the
Commitments or, from time to time, to reduce the amount of the Commitments,
provided, that (i) after giving effect to such reduction, the aggregate
--------
outstanding principal amount of the Loans shall not exceed the aggregate
Commitments and (ii) such notice shall be accompanied by a certificate of the
Construction Agent stating that the amount equal to 97% of aggregate remaining
Budgeted Total Loan Property Costs as of the date of such reduction does not
exceed the aggregate amount of Available Commitments as of such date after
giving effect to such reduction.  Any such reduction shall be in an amount equal
to the lesser of (A) $10,000,000 (or such greater amount in multiples of
$1,000,000 as the Borrower shall elect) or (B) the remaining Available
Commitments, and shall reduce permanently the Commitments then in effect.

          (b)  On any date on which the Commitments shall automatically be
reduced to zero pursuant to Section 6, the Borrower shall prepay all outstanding
Loans, together with accrued unpaid interest thereon and all other amounts owing
thereunder.

          2.6  Prepayments and Payments.
               ------------------------

          (a)  Subject to Sections 2.11, 2.12 and 2.13, the Borrower may at any
time and from time to time prepay the Loans, in whole or in part, without
premium or penalty, upon at least three (3) Business Days' irrevocable notice to
the Administrative Agent, specifying the date and amount of prepayment and
whether the prepayment is of Eurodollar Loans, ABR Loans or a combination
thereof, and, if a combination thereof, the amount allocable to each. Upon
receipt of any such notice the Administrative Agent shall promptly notify each
Lender thereof. If any such notice is given, the amount specified in such notice
shall be due and payable on the date specified therein. Amounts prepaid may not
be reborrowed.

          (b)  If on any date the Administrative Agent or the Lessor shall
receive any payment in respect of (i) any Casualty or Condemnation pursuant to
Section 15.1(a) or 15.1(g) of the Lease (excluding any payments in respect
thereof which are payable to Lessee in accordance with the Lease or held by
Lessor as security for performance of Lessee's obligations under the Lease), or
(ii) the Termination Value of any Property in connection with the delivery of a
Termination Notice pursuant to Article XVI of the Lease, or (iii) the
Termination Value of any Property in connection with the exercise of the
Purchase Option under Section 20.1 of the Lease or the exercise of the option of
the Lessor to transfer the Properties to the Lessee pursuant to Section 20.3 of
the Lease, or (iv) any payment in an amount equal to the Termination Value for
any or all Construction Period Properties required to be made or elected to be
made by the Construction Agent to the Lessor pursuant to the terms of the Agency
Agreement, then in each case, such amounts shall be applied and allocated in the
manner contemplated by Section 8.1(b)(ii).

                                       4
<PAGE>

          (c)  Each prepayment of the Loans pursuant to Section 2.6(b) shall be
allocated to reduce the Loan Property Cost of the applicable Property.  Each
prepayment of the Loans pursuant to Section 2.6(a) shall be allocated to reduce
the respective Loan Property Costs of all Properties pro rata according to the
                                                     --- ----
Loan Property Costs of such Properties immediately before giving effect to such
prepayment.  Any amounts applied to reduce the Loan Property Cost of any
Construction Period Property pursuant to this paragraph (c) shall also be
applied to reduce the Construction Loan Property Cost of such Property until
such Construction Loan Property Cost has been reduced to zero.

          2.7  Conversion and Continuation Options.
               ------------------------------------

          (a)  The Borrower may elect from time to time to convert Eurodollar
Loans to ABR Loans by giving the Agent at least three Business Days' prior
irrevocable notice of such election, provided that any such conversion of
Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto. The Borrower may elect from time to time to convert ABR Loans
to Eurodollar Loans by giving the Agent at least three (3) Business Days' prior
irrevocable notice of such election. Upon receipt of any such notice, the Agent
shall promptly notify each Lender thereof. All or any part of outstanding
Eurodollar Loans or ABR Loans may be converted as provided herein, provided that
(i) no ABR Loan may be converted into a Eurodollar Loan after the date that is
one month prior to the Maturity Date or when an Event of Default exists, (ii)
during the Commitment Period such conversion may only occur on the first day of
the single Interest Period for Eurodollar Loans permitted pursuant to the terms
of Section 2.3 hereof and (iii) after the Commitment Period such notice of
conversion shall contain an election by the Borrower of an Interest Period for
such Eurodollar Loan to be created by such conversion and such Interest Period
shall be in accordance with the terms of subparagraph (b) of the definition of
the term "Interest Period".

          (b)  Subject to the restrictions set forth in Section 2.3 hereof, any
Eurodollar Loan may be continued as such upon the expiration of the current
Interest Period with respect thereto by the Borrower giving irrevocable notice
to the Agent in accordance with the applicable provisions of the term "Interest
Period" of the length of the next Interest Period to be applicable to such
Loans, provided that no Eurodollar Loan may be continued as such after the date
that is one month prior to the Maturity Date or when an Event of Default exists
and provided, further, that if the Borrower shall fail to give any required
notice as described above or otherwise herein, or if such continuation is not
permitted pursuant to the proceeding proviso, such Loan shall automatically be
converted to an ABR Loan on the last day of such then expiring Interest Period.

          2.8  Interest Rates and Payment Dates.
               --------------------------------

          (a)  The Loans outstanding hereunder from time to time shall bear
interest for each day during each Interest Period with respect thereto at a rate
per annum equal to either (i) the Eurodollar Rate determined for such day plus
the Applicable Percentage or (ii) the ABR, as selected by the Borrower in
accordance with the provisions hereof; provided, however, (A) upon delivery by
the Administrative Agent of the notice described in Section 2.9(c), the Loans of
each

                                       5
<PAGE>

of the Lenders shall bear interest at the ABR applicable from time to time from
and after the dates and during the periods specified in Section 2.9(c), (B) upon
the delivery by a Lender of the notice described in Section 2.11(d), the Loans
of such Lender shall bear interest at the ABR applicable from time to time from
and after the dates and during the periods specified in Section 2.11(d) and (C)
in such other circumstances as expressly provided herein, the Loans shall bear
interest at the ABR.

          (b)  If all or a portion of (i) the principal amount of any Loan, (ii)
any interest payable thereon or (iii) any other amount payable hereunder shall
not be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue amount shall bear interest at a rate per annum which is
the lesser of (x) then current rate of interest respecting such payment plus 2%
and (y) the highest interest rate permitted by applicable law, in each case from
the date of such non-payment until such amount is paid in full (whether after or
before judgment).

          (c)  Interest shall be payable in arrears on the applicable Scheduled
Interest Payment Date (but for any Loan having an Interest Period of six (6)
months or longer, interest shall be payable in arrears on each applicable three
(3) month anniversary date of the commencement of such Loan), provided that (i)
                                                              --------
interest accruing pursuant to paragraph (b) of this Section 2.8 shall be payable
from time to time on demand and (ii) each prepayment of the Loans shall be
accompanied by accrued interest to the date of such prepayment on the amount
prepaid.

          2.9  Computation of Interest.
               -----------------------

          (a)  Whenever it is calculated on the basis of the Prime Lending Rate,
interest shall be calculated on the basis of a 365- (or 366-, as the case may
be) day year for the actual days elapsed; and, otherwise, interest shall be
calculated on the basis of a 360-day year for the actual days elapsed.  The
Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of each determination of a Eurodollar Rate.  Any change in the interest
rate on a Loan resulting from a change in the ABR or the Eurocurrency Reserve
Requirements shall become effective as of the day on which such change becomes
effective.  The Administrative Agent shall as soon as practicable notify the
Borrower and the Lenders of the effective date and the amount of each such
change in interest rate.

          (b)  Each determination of an interest rate by the Administrative
Agent pursuant to any provision of this Agreement shall be conclusive and
binding on the Borrower and the Lenders in the absence of manifest error.

          (c)  If the Eurodollar Rate cannot be determined by the Administrative
Agent in the manner specified in the definition of the term "Eurodollar Rate"
contained in Appendix A to the Participation Agreement, the Administrative Agent
shall give telecopy or telephonic notice thereof to the Borrower and the Lenders
as soon as practicable thereafter.  Until such time as the Eurodollar Rate can
be determined by the Administrative Agent in the manner specified in the
definition of such term, no further Eurodollar Loans shall be made or shall be
continued as such

                                       6
<PAGE>

at the end of the then current Interest Period nor shall the Borrower have the
right to convert ABR Loans to Eurodollar Loans.

          2.10  Pro Rata Treatment and Payments.
                -------------------------------

          (a)   Each borrowing by the Borrower from the Lenders hereunder and
any reduction of the Commitments of the Lenders shall be made pro rata according
to their respective Commitments. Subject to the provisions of Section 8 hereof,
each payment (including each prepayment) by the Borrower on account of principal
of and interest on the Loans shall be made pro rata according to the respective
outstanding principal amounts on the Loans then held by the Lenders. All
payments (including prepayments) to be made by the Borrower hereunder and under
the Notes, whether on account of principal, interest or otherwise, shall be made
without setoff or counterclaim and shall be made prior to 12:00 Noon, Dallas,
Texas time, on the due date thereof to the Administrative Agent, for the account
of the Lenders, at the Administrative Agent's office specified in Section 9.2,
in Dollars and in immediately available funds. The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received. If any payment hereunder becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day; provided, however, if such payment includes an amount of interest
calculated with reference to the Eurodollar Rate and the result of such
extension would be to extend such payment into another calendar month, then such
payment shall be made on the immediately preceding Business Day. In the case of
any extension of any payment of principal pursuant to the preceding two
sentences, interest thereon shall be payable at the then applicable rate during
such extension.

          (b)   Unless the Administrative Agent shall have been notified in
writing by any Lender prior to a borrowing that such Lender will not make its
share of such borrowing available to the Administrative Agent, the
Administrative Agent may assume that such Lender is making such amount available
to the Administrative Agent, and the Administrative Agent may, in reliance upon
such assumption, make available to the Borrower a corresponding amount.  If such
amount is not made available to the Administrative Agent by the required time on
the Borrowing Date therefor, such Lender shall pay to the Administrative Agent,
on demand, such amount with interest thereon at a rate equal to the daily
average Federal Funds Effective Rate for the period until such Lender makes such
amount immediately available to the Administrative Agent.  A certificate of the
Administrative Agent submitted to any Lender with respect to any amounts owing
under this Section 2.10(b) shall be conclusive in the absence of manifest error.
Nothing in this Section 2.10(b) or in any other provision in any Operative
Agreement shall require the Administrative Agent to make any borrowing available
to the Borrower unless such amounts have been made available to the
Administrative Agent by the Lenders.

          2.11  Increased Costs, Illegality, etc.
                ---------------------------------

          (a)   If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation or (ii) the compliance with any
guideline or request hereafter adopted, promulgated or made by any central bank
or other governmental authority (whether or not having the force of law), there
shall be any increase in the cost to any Lender of

                                       7
<PAGE>

agreeing to make or making, funding or maintaining Loans, then the Borrower
shall from time to time, upon demand by such Lender (with a copy of such demand
to the Administrative Agent but subject to the terms of Section 2.14), pay (with
funds provided by the Lessee as Supplemental Rent pursuant to Section 3.3 of the
Lease after the Basic Term Commencement Date or pursuant to Article IX or
Section 13.6 of the Participation Agreement prior to the Basic Term Commencement
Date) to the Administrative Agent for the account of such Lender additional
amounts sufficient to compensate such Lender for such increased cost. A
certificate as to the amount of such increased cost, submitted to the Borrower
and the Administrative Agent by such Lender, shall be conclusive and binding for
all purposes, absent manifest error.

          (b)   If any Lender determines that compliance with any law or
regulation or any guideline or request from any central bank or other
governmental authority (whether or not having the force of law, but in each case
promulgated or made after the date hereof) affects or would affect the amount of
capital required or expected to be maintained by such Lender or any corporation
controlling such Lender and that the amount of such capital is increased by or
based upon the existence of such Lender's commitment to lend hereunder and other
commitments of this type or upon the Loans, then, upon demand by such Lender
(with a copy of such demand to the Administrative Agent but subject to the terms
of Section 2.14), the Borrower shall pay (with funds provided by the Lessee as
Supplemental Rent pursuant to Section 3.3 of the Lease after the Basic Term
Commencement Date or pursuant to Article IX or Section 13.6 of the Participation
Agreement prior to the Basic Term Commencement Date) to the Administrative Agent
for the account of such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender or such corporation in
the light of such circumstances, to the extent that such Lender reasonably
determines such increase in capital to be allocable to the existence of such
Lender's commitment to lend hereunder or upon the Loans.  A certificate as to
such amounts submitted to the Borrower and the Administrative Agent by such
Lender shall be conclusive and binding for all purposes, absent manifest error.

          (c)   Without limiting the effect of the foregoing, the Borrower shall
pay to each Lender on the last day of the Interest Period therefor so long as
such Lender is maintaining reserves against "Eurocurrency liabilities" under
Regulation D an additional amount (determined by such Lender and notified to the
Borrower through the Administrative Agent) equal to the product of the following
for each Eurodollar Loan for each day during such Interest Period:

          (i)   the principal amount of such Eurodollar Loan outstanding on such
     day; and

          (ii)  the remainder of (x) a fraction the numerator of which is the
     rate (expressed as a decimal) at which interest accrues on such Eurodollar
     Loan for such Interest Period as provided in this Credit Agreement (less
     the Applicable Percentage) and the denominator of which is one minus the
                                                                    -----
     effective rate (expressed as a decimal) at which such reserve requirements
     are imposed on such Lender on such day minus (y) such numerator; and

                (iii)  1/360.

                                       8
<PAGE>

          (d)   Without affecting its rights under Section 2.11(a) or 2.11(b) or
any other provision of this Agreement, each Lender agrees that if there is any
increase in any cost to or reduction in any amount receivable by such Lender
with respect to which the Borrower would be obligated to compensate such Lender
pursuant to Sections 2.11(a) or 2.11(b), such Lender shall use reasonable
efforts to select an alternative lending office which would not result in any
such increase in any cost to or reduction in any amount receivable by such
Lender; provided, however, that no Lender shall be obligated to select an
        --------  -------
alternative lending office if such Lender determines that (i) as a result of
such selection such Lender would be in violation of any applicable law,
regulation, treaty, or guideline, or would incur additional costs or expenses or
(ii) such selection would be inadvisable for regulatory reasons or inconsistent
with the interests of such Lender.

          (e)   Notwithstanding any other provision of this Agreement, if any
Lender shall notify the Administrative Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful,
or any central bank or other governmental authority asserts that it is unlawful,
for any Lender to perform its obligations hereunder to make or maintain
Eurodollar Loans, then (i) each Eurodollar Loan will automatically, at the
earlier of the end of the Interest Period for such Eurodollar Loan or the date
required by law, convert into an ABR Loan and (iii) the obligation of the
Lenders to make, convert or continue Eurodollar Loans shall be suspended until
the Administrative Agent shall notify the Borrower that such Lender has
determined that the circumstances causing such suspension no longer exist.

          2.12  Funding Indemnity.
                -----------------

          Subject to the provisions of Section 2.14(a), the Borrower agrees,
subject to and in accordance with the provisions of the Participation Agreement,
to indemnify each Lender and to hold  each Lender harmless from any loss or
reasonable expense which such Lender may sustain or incur as a consequence of
default by the Borrower in making a borrowing of any Loan hereunder after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, default by the Borrower in making any prepayment
after the Borrower has given a notice thereof in accordance with the provisions
of this Agreement or the making of a voluntary or involuntary prepayment of
Eurodollar Loans on a day which is not the last day of an Interest Period with
respect thereto. Such indemnification shall be in an amount equal to the excess,
if any, of the amount of interest which would have accrued on the amount so
prepaid, or not so borrowed, converted or continued for the period from the date
of such prepayment or of such failure to borrow, convert or continue to the last
day of such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable Eurodollar Rate for such Loan for such
Interest Period over the amount of interest (as determined by such Lender) which
would have accrued to such Lender on such amount by reemploying such funds in
loans of the same type and amount during the period from the date of prepayment
or failure to borrow to the last day of the then applicable Interest Period (or,
in the case of a failure to borrow, the Interest Period that would have
commenced on the date of such failure). This covenant shall

                                       9
<PAGE>

survive the termination of this Agreement and the payment of all other amounts
payable hereunder.

          2.13  Taxes.
                -----

          (a)   All payments made by the Borrower to both U.S. and non-U.S.
Persons under this Agreement and the Notes shall be made free and clear of, and
without deduction or withholding for or on account of, any present or future
income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions
or withholdings, now or hereafter imposed, levied, collected, withheld or
assessed by any Governmental Authority, excluding net income taxes and franchise
taxes (imposed in lieu of net income taxes) imposed on the Administrative Agent
or any Lender as a result of a present or former connection between the
Administrative Agent or such Lender and the jurisdiction of the Governmental
Authority imposing such tax or any political subdivision or taxing authority
thereof or therein (other than any such connection arising solely from the
Administrative Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or the
Notes).  If any such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions or withholdings ("Non-Excluded Taxes") are required to be withheld
                             ------------------
from any amounts payable to the Administrative Agent or any Lender hereunder or
under the Notes, the amounts so payable to the Administrative Agent or such
Lender shall be increased to the extent necessary to yield to the Administrative
Agent or such Lender (after payment of all Non-Excluded Taxes) interest or any
such other amounts payable hereunder at the rates or in the amounts specified in
this Agreement and the Notes, provided, however, that the foregoing obligations
                              --------  -------
of the Borrower shall not apply:

          (i)  to any payment to any Lender hereunder unless such Lender is, on
     the date hereof (or on the date it becomes a Lender hereunder as provided
     in Section 9.8 hereof) and on the date of any change in the Lending Office
     of such Lender, either entitled to submit a Form 1001 (relating to such
     Lender and entitling it to a complete exemption from withholding on all
     interest to be received by it hereunder in respect of the Loans) or Form
     4224 (relating to all interest to be received by such Lender hereunder in
     respect of the Loans), or

          (ii) to any U.S. Taxes imposed solely by reason of the failure by a
     non-U.S. Person to comply with applicable certification, information,
     documentation or other reporting requirements concerning the nationality,
     residence, identity or connections with the United States of America of
     such non-U.S. Person if such compliance is required by statute or
     regulation of the United States of America as a precondition to relief or
     exemption from such U.S. Taxes.

For the purposes of this Section 2.13(a), (A) "U.S. Person" shall mean a
                                               -----------
citizen, national or resident of the United States of America, a corporation,
partnership or other entity created or organized in or under any laws of the
United States of America or any State thereof, or any estate or trust that is
subject to Federal income taxation regardless of the source of its income, (B)
"U.S. Taxes" shall mean any present or future tax, assessment or other charge or
 ----------
levy imposed by or on behalf of the United States of America or any taxing
authority thereof or therein, (C)

                                       10
<PAGE>

"Form 1001" shall mean Form 1001 (Ownership, Exemption, or Reduced Rate
 ---------
Certificate) of the Department of the Treasury of the United States of America
and (D) "Form 4224" shall mean Form 4224 (Exemption from Withholding of Tax on
                               ---------
Income Effectively Connected with the Conduct of a Trade or Business in the
United States) of the Department of Treasury of the United States of America (or
in relation to either such Form such successor and related forms as may from
time to time be adopted by the relevant taxing authorities of the United States
of America to document a claim to which such Form relates). Each of the Forms
referred to in the foregoing clauses (C) and (D) shall include such successor
and related forms as may from time to time be adopted by the relevant taxing
authorities of the United States of America to document a claim to which such
Form relates.

          (b)   Within 30 days after paying any amount to the Administrative
Agent or any Lender from which it is required by law to make any deduction or
withholding, and within 30 days after it is required by law to remit such
deduction or withholding to any relevant taxing authority, the Borrower shall
deliver to the Administrative Agent for delivery to such non-U.S. Person
evidence satisfactory to such Person of such deduction, withholding or payment
(as the case may be).

          (c)   If a Lender or an affiliate with whom such Lender files a
consolidated tax return (or equivalent) subsequently receives the benefit in any
country of a tax credit or an allowance resulting from U.S. Taxes with respect
to which it has received a payment of an additional amount under this Section
2.13, such Lender will pay to the Borrower such part of that benefit as in the
opinion of such Lender will leave it (after such payment) in a position no more
and no less favorable than it would have been in if no additional payment had
been required to be paid, provided always that (i) such Lender will be the sole
judge of the amount of any such benefit and of the date on which it is received,
(ii) such Lender will have the absolute discretion as to the order and manner in
which it employs or claims tax credits and allowances available to it and (iii)
such Lender will not be obliged to disclose to the Borrower any information
regarding its tax affairs or tax computations other than the nature and amount
of any tax credit pursuant to this Section 2.13(c).

          (d)   Each non-U.S. Person that shall become a Participant pursuant to
Section 9.7 or a Lender pursuant to Section 9.8 shall, upon the effectiveness of
the related transfer, be required to provide all of the forms and statements
referenced under subsection 2.13(a)(i), provided that in the case of a
Participant such Participant shall furnish all such required forms and
statements to the Lender from which the related participation shall have been
purchased.

          2.14  Notice of Amounts Payable; Mandatory Assignment.
                -----------------------------------------------

          (a)   Notice.  In the event that any Lender becomes  aware that any
                ------
amounts are or will be owed to it pursuant to Section 2.11, 2.12 or 2.13 or that
it is unable to make Eurodollar Loans, then it shall promptly notify the
Borrower and the Administrative Agent thereof and, as soon as possible
thereafter, such Lender shall submit to the Borrower (with a copy to the
Administrative Agent) a certificate indicating the amount owing to it and the
calculation thereof.

                                       11
<PAGE>

The amounts set forth in such certificate shall be prima facie evidence of the
obligations of the Borrower hereunder.

          (b)  Mandatory Assignment.  In the event that any Lender delivers to
               --------------------
the Borrower a certificate in accordance with Section 2.14(a) in connection with
amounts payable pursuant to Section 2.11, Section 2.12 or Section 2.13 or such
Lender is required to make Loans as ABR Loans in accordance with Section 2.11(d)
then, subject to Section 11.1 of the Participation Agreement, the Borrower may,
at its own expense and in its sole discretion, (i) require such Lender to
transfer or assign, in whole, without recourse (in accordance with Section 9.8),
all of its interests, rights (except for rights to be indemnified for actions
taken while a party hereunder) and obligations under this Agreement to a
replacement bank or institution if the Borrower (subject to Section 11.1 of the
Participation Agreement), with the full cooperation of such Lender, can identify
a Person who is ready, willing and able to be such replacement bank or
institution with respect thereto and such replacement bank or institution (which
may be another Lender) shall assume such assigned obligations, or (ii) during
such time as no Default or Event of Default has occurred and is continuing,
terminate the Commitment of such Lender and prepay all outstanding Loans and
such Lender; provided, however, that (x) subject to Section 11.1 of the
             --------  -------
Participation Agreement, the Borrower or such replacement bank or institution,
as the case may be, shall have paid to such Lender in immediately available
funds the principal of and interest accrued to the date of such payment on all
the Loans made by it hereunder and all other amounts owed to it hereunder (and,
if such Lender is also a Holder, all Holder Fundings and Holder Yield accrued
and unpaid thereon), (y) any termination of Commitments shall be subject to the
terms of Section 2.5(a) and (z) such assignment or termination of the Commitment
of such Lender and prepayment of Loans does not conflict with any law, rule or
regulation or order of any court or Governmental Authority.

                   SECTION 3  REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into this
Agreement and to make the Loans, each of the Trust Company and the Owner Trustee
hereby represents and warrants to the Administrative Agent and each Lender as
follows (provided that the representations in Sections 3.8, 3.9. 3.10, 3.12 and
3.13 are made solely by the Owner Trustee in its capacity as such):

          3.1  Due Organization, etc.
               ---------------------

     It is a national banking association duly organized and validly existing
and in good standing under the laws of the United States of America and has the
power and authority to enter into and perform its obligations under the Trust
Agreement and (assuming due authorization, execution and delivery of the Trust
Agreement by the Holders) has the corporate and trust power and authority to act
as the Owner Trustee and to enter into and perform the obligations under each of
the other Operative Agreements to which the Trust Company or the Owner Trustee,
as the case may be, is or will be a party and each other agreement, instrument
and document to be executed and delivered by it on or before the date this
representation is made or deemed made in

                                       12
<PAGE>

connection with or as contemplated by each such Operative Agreement to which the
Trust Company or the Owner Trustee, as the case may be, is or will be a party.

          3.2  Authorization; No Conflict.
               --------------------------

     The execution, delivery and performance of each Operative Agreement to
which it is or will be a party, either in its individual capacity or (assuming
due authorization, execution and delivery of the Trust Agreement by the Holders)
as the Owner Trustee, as the case may be, has been duly authorized by all
necessary action on its part and neither the execution and delivery thereof, nor
the consummation of the transactions contemplated thereby, nor compliance by it
with any of the terms and provisions thereof does or will require any approval
or consent of any trustee or holders of any of its indebtedness or obligations,
does or will contravene any current law, governmental rule or regulation
relating to its banking or trust powers, does or will contravene or result in
any breach of or constitute any default under, or result in the creation of any
Lien upon any of its property under, its charter or by-laws, or any indenture,
mortgage, chattel mortgage, deed of trust, conditional sales contract, bank loan
or credit agreement or other agreement or instrument to which it is a party or
by which it or its properties may be bound or affected (other than as
contemplated by the Operative Agreements) which contravention, breach, default
or Lien under clause (ii) would materially and adversely affect its ability, in
its individual capacity or as Owner Trustee, to perform its obligations under
the Operative Agreements to which it is a party or does or will require any
Governmental Action by any Governmental Authority regulating its banking or
trust powers.

          3.3  Enforceability, Etc.
               --------------------

          The Trust Agreement and, assuming the Trust Agreement is the legal,
valid and binding obligation of the Holder, each other Operative Agreement to
which the Trust Company or the Owner Trustee, as the case may be, is or will be
party have been, or on or before the date this representation is made or deemed
made will be, duly executed and delivered by the Trust Company or the Owner
Trustee, as the case may be, and the Trust Agreement and each such other
Operative Agreement to which the Trust Company or the Owner Trustee, as the case
may be, is a party constitutes, or upon execution and delivery will constitute,
a legal, valid and binding obligation enforceable against the Trust Company or
the Owner Trustee, as the case may be, in accordance with the terms thereof.

          3.4  Litigation.
               -----------

          There is no action or proceeding pending or, to its knowledge,
threatened to which it is or will be a party, either in its individual capacity
or as the Owner Trustee, before any Governmental Authority that concerns any
Property being purchased or leased or Construction Advance being funded on the
date this representation is made or deemed made or that, if adversely
determined, would materially and adversely affect its ability, in its individual
capacity or as Owner Trustee, to perform its obligations under the Operative
Agreements to which it is a party or would question the validity or
enforceability of any of the Operative Agreements to which it is or will become
a party.

                                       13
<PAGE>

          3.5  Lessor Liens.
               -------------

          Each Property is free and clear of all Lessor Liens attributable to it
in its individual capacity.

          3.6  Assignment.
               -----------

          It has not assigned or transferred any of its right, title or interest
in or under the Lease, the Agency Agreement or its interest in any Property or
any portion thereof, except as provided in the Operative Agreements.

          3.7  Defaults.
               --------

          No Default or Event of Default under any Operative Agreement
attributable to it has occurred and is continuing.

          3.8  Documentation.
               -------------

          The Owner Trustee, in its trust capacity, is a party to no documents,
instruments or agreements other than the Operative Agreements (and any other
documents delivered in connection with the Operative Agreements).

          3.9  Use of Proceeds.
               ---------------

          The proceeds of the Loans shall be applied by the Owner Trustee solely
in accordance with the terms of the Operative Agreements.

          3.10 Securities Act.
               ---------------

          Neither the Owner Trustee nor any Person authorized by the Owner
Trustee to act on its behalf has offered or sold any interest in the CORI Trust
Estate or the Notes, or in any similar security relating to a Property, or in
any security the offering of which for the purposes of the Securities Act of
1933, as amended, would be deemed to be part of the same offering as the
offering of the aforementioned securities to, or solicited any offer to acquire
any of the same from, any Person other than in the case of the Notes, the
Lenders, and neither the Owner Trustee nor any Person authorized by the Owner
Trustee to act on its behalf will take any action which would subject, as a
direct result of such action alone, the issuance or sale of any interest in the
CORI  Trust Estate or the Notes to the provisions of Section 5 of the Securities
Act of 1933, as amended, or require the qualification of any Operative Agreement
under the Trust Indenture Act of 1939, as amended.

                                       14
<PAGE>

          3.11  Chief Place of Business.
                -----------------------

          The Owner Trustee's chief place of business, chief executive office
and office where the documents, accounts and records relating to the
transactions contemplated by this Agreement and each other Operative Agreement
are kept are each located at 79 South Main Street, 3rd Floor, Salt Lake City,
Utah 84111.

          3.12  Federal Reserve Regulations.
                ---------------------------

          The Owner Trustee is not engaged principally in, and does not have as
one of its important activities, the business of extending credit for the
purpose of purchasing or carrying any margin stock (within the meaning of
Regulation U of the Board), and no part of the proceeds of the Loans will be
used by it to purchase or carry any margin stock or to extend credit to others
for the purpose of purchasing or carrying any such margin stock or for any
purpose that violates, or is inconsistent with, the provisions of Regulations T,
U or X of the Board.

          3.13  Investment Company Act.
                ----------------------

          The Owner Trustee is not an "investment company" or a company
controlled by an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.

                        SECTION 4 CONDITIONS PRECEDENT

          4.1   Conditions to Effectiveness.
                ---------------------------

          The effectiveness of this Agreement is subject to the satisfaction of
all conditions precedent set forth in Section 6 of the Participation Agreement
required by said Section to be satisfied on or prior to the Initial Closing
Date.

          4.2   Conditions to Each Loan.
                -----------------------

          The agreement of each Lender to make any Loan requested to be made by
it on any date is subject to the satisfaction of the following conditions
precedent:

          (a)   Representations and Warranties. Each of the representations and
                ------------------------------
warranties made by the Borrower in or pursuant to the Operative Agreements shall
be true and correct in all material respects on and as of such date as if made
on and as of such date.

          (b)   No Default. No Default or Event of Default shall  have occurred
                ----------
and be continuing on  such date or after giving effect to the Loans requested to
be made on such date.

          (c)   Participation Agreement Conditions. With respect to each
                ----------------------------------
Acquisition Loan and each Construction Loan, the applicable conditions
precedent to the Advance

                                       15
<PAGE>

associated therewith specified in Section 5 of the Participation Agreement shall
have been satisfied.

          (d)   Holder Contribution. With respect to each Loan, the
                -------------------
Administrative Agent shall be satisfied that the Lessor shall receive from the
Holders on the relevant Borrowing Date an amount equal to the Holder Fundings
associated with such Loan.

Each borrowing by the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date of such Loan that the conditions
contained in this Section 4.2 have been satisfied.

                              SECTION 5 COVENANTS

          So long as any Loan or Note remains outstanding and unpaid or any
other amount is owing to any Lender or the Administrative Agent hereunder:

          5.1   Other Activities.
                ----------------

          The Borrower shall not conduct, transact or otherwise engage in, or
commit to transact, conduct or otherwise engage in, any business or operations
other than the entry into, and exercise of rights and performance of obligations
in respect of, the Operative Agreements and other activities incidental or
related to the foregoing.

          5.2   Ownership of Properties, Indebtedness.
                -------------------------------------

          The Borrower shall not own, lease, manage or otherwise operate any
properties or assets other than in connection with the activities described in
Section 5.1, or incur, create, assume or suffer to exist any Indebtedness or
other consensual liabilities or financial obligations other than as may be
incurred, created or assumed or as may exist in connection with the activities
described in Section 5.1 (including, without limitation, the Loans and other
obligations incurred by the Borrower hereunder).

          5.3   Disposition of Assets.
                ----------------------

          The Borrower shall not convey, sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets, whether now owned
or hereafter acquired, except to the extent expressly contemplated by the
Operative Agreements.

          5.4   Compliance with Operative Agreements.
                ------------------------------------

          The Borrower shall at all times  observe and perform all of the
covenants, conditions and obligations required to be performed by it (whether in
its capacity as Lessor, Owner Trustee or otherwise) under each Operative
Agreement to which it is a party and (b) observe and perform, or cause to be
observed and performed, all of the covenants, conditions and

                                       16
<PAGE>

obligations of the Lessor under the Lease, even in the event that the Lease is
terminated at stated expiration following a Lease Event of Default or otherwise.

          5.5   Further Assurances.
                ------------------

          At any time and from time to time, upon the written request of the
Administrative Agent, and at the sole expense of the Borrower, the Borrower will
promptly and duly execute and deliver such further instruments and documents and
take such further action as the Administrative Agent or the Majority Lenders may
reasonably request for the purpose of obtaining or preserving the full benefits
of this Agreement and the other Operative Agreements and of the rights and
powers herein or therein granted.

          5.6   Notices.
                -------

          If on any date, a Responsible Officer of the Borrower shall obtain
actual knowledge of the occurrence of a Default or Event of Default, the
Borrower will give written notice thereof to the Administrative Agent within
five Business Days after such date.

          5.7   Discharge of Liens.
                ------------------

          Neither the Borrower nor the Trust Company will create or permit to
exist at any time, and will, at its own expense, promptly take such action as
may be necessary duly to discharge, or cause to be discharged, all Lessor Liens
attributable to it, provided, that the Borrower and the Trust Company shall not
                    --------
be required to discharge any Lessor Lien while the same is being contested in
good faith by appropriate proceedings diligently prosecuted so long as such
proceedings shall not involve any material danger of impairment of any of the
Liens contemplated by the Security Documents or of the sale, forfeiture or loss
of, and shall not materially interfere with the disposition of, any Property or
title thereto or any interest therein or the payment of Rent.

          5.8   Trust Agreement.
                ---------------

          Without prejudice to any right under the Trust Agreement of the Owner
Trustee to resign, the Owner Trustee (a) agrees not to terminate or revoke the
trust created by the Trust Agreement except as permitted by Article VIII of the
Trust Agreement, (b) agrees not to amend, supplement, terminate, revoke or
otherwise modify any provision of the Trust Agreement in any manner which could
reasonably be expected to have an adverse effect on the rights or interests of
the Administrative Agent or the Lenders hereunder or under the other Operative
Agreements and (c) agrees to comply with all of the terms of the Trust
Agreement.

                          SECTION 6 EVENTS OF DEFAULT

          Upon the occurrence of any of the following specified events (each an
"Event of Default"):
 ----------------

                                       17
<PAGE>

          (a)  The Borrower shall (i) default in the payment when due of any
principal of the Loans or (ii) except as provided in paragraph (c), default, and
such default shall continue for three (3) or more days, in the payment when due
of any interest on the Loans; or

          (b)  Except as provided in paragraphs (a) and (c), the Borrower shall
default, and such default shall continue for ten (10) or more days, in the
payment of any amount owing under any Credit Document; or

          (c)  The Borrower shall default in the payment of any amount due on
the Maturity Date owing under any Credit Document; or

          (d)  The Borrower shall default in the due performance or observance
by it of any term, covenant or agreement contained in any Credit Document to
which it is a party (other than those referred to in paragraphs (a), (b) and (c)
above), provided, that in the case of any such default under Section 5.4, 5.5 or
        --------
5.8(c), such default shall have continued unremedied for a period of at least
thirty (30) days after notice to the Borrower by the Administrative Agent or the
Majority Lenders; or

          (e)  Any representation, warranty or statement made or deemed made by
the Borrower herein or in any other Credit Document or by the Borrower or the
Lessee in the Participation Agreement or the Lease, or in any statement or
certificate delivered or required to be delivered pursuant hereto or thereto,
shall prove to be untrue in any material respect on the date as of which made or
deemed made; or

          (f)  (i) Any Lease Event of Default shall have occurred and be
continuing, or (ii) the Owner Trustee shall default in the due performance or
observance by it of any term, covenant or agreement contained in the
Participation Agreement or in the Trust Agreement to or for the benefit of the
Administrative Agent or a Lender, provided, that in the case of this clause (ii)
                                  --------
such default shall have continued unremedied for a period of at least thirty
(30) days after notice to the Owner Trustee by the Administrative Agent or the
Majority Lenders; or

          (g)  The Borrower shall commence a voluntary case concerning itself
under Title 11 of the U.S. Code entitled "Bankruptcy", as now or hereafter in
effect, or any successor thereto (the "Bankruptcy Code"); or an involuntary case
                                       ---------------
is commenced against the Borrower and the petition is not contravened within 10
days after commencement of the case or an involuntary case is commenced against
the Borrower and the petition is not dismissed within sixty (60) days after
commencement of the case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or substantially all of the property of
the Borrower; or the Borrower commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to the Borrower, or there is commenced against the
Borrower any such proceeding which remains undismissed for a period of ninety
(90) days; or the Borrower is adjudicated insolvent or bankrupt, or any order of
relief or other order approving any such case or proceeding is entered; or the
Borrower suffers any appointment of any custodian or

                                       18
<PAGE>

the like for it or any substantial part of its property to continue undischarged
or unstayed for a period of ninety (90) days; or the Borrower makes a general
assignment for the benefit of creditors; or any corporate or partnership action
is taken by the Borrower for the purpose of effecting any of the foregoing; or

          (h)  Any Security Document shall cease to be in full force and effect,
or shall cease to give the Administrative Agent the Liens, rights, powers and
privileges purported to be created thereby (including, without limitation, a
first priority perfected security interest in, and Lien on, all of the
Properties), in favor of the Administrative Agent on behalf of the Lenders,
superior to and prior to the rights of all third Persons and subject to no other
Liens (except in each case to the extent expressly permitted herein or in any
Operative Agreement); or

          (i)  The Lease shall cease to be enforceable against the Lessee; or

          (j)  One or more judgments or decrees shall be entered against the
Borrower involving a liability of $50,000 or more in the case of any one such
judgment or $100,000 or more in the aggregate for all such judgments and decrees
for the Borrower and any such judgments or decrees shall not have been
satisfied, vacated, discharged or stayed or bonded pending appeal within thirty
(30) days from the entry thereof.

then, and in any such event, (A) if such event is an Event of Default specified
in paragraph (g) above with respect to the Borrower, automatically the
Commitments shall immediately terminate and the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the Notes
shall immediately become due and payable, and (B) if such event is any other
Event of Default, either or both of the following actions may be taken:  (i)
with the consent of the Majority Lenders, the Administrative Agent may, or upon
the request of the Majority Lenders, the Administrative Agent shall, by notice
to the Borrower declare the Commitments to be terminated forthwith, whereupon
the Commitments shall immediately terminate; and (ii) with the consent of the
Majority Lenders, the Administrative Agent may, or upon the request of the
Majority Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement and the Notes to be due and payable
forthwith, whereupon the same shall immediately become due and payable (any of
the foregoing occurrences or actions referred to in clause (A) or (B) above, an
"Acceleration"). Except as expressly provided above in this Section 6,
 ------------
presentment, demand, protest and all other notices of any kind are hereby
expressly waived.

          Upon the occurrence of any Event of Default and at any time thereafter
so long as any Event of Default shall be continuing, the Administrative Agent
shall, upon the written instructions of the Majority Lenders, exercise any or
all of the rights and powers and pursue any and all of the remedies available to
it hereunder and (subject to the terms thereof) under the other Credit
Documents, the Lease and the other Operative Agreements and shall have any and
all rights and remedies available under the Uniform Commercial Code or any
provision of law.

                                       19
<PAGE>

          Upon the occurrence of any Event of Default and at any time thereafter
so long as any Event of Default shall be continuing, the Administrative Agent
may, and upon request of the Majority Lenders shall, proceed to protect and
enforce this Agreement, the Notes, the other Credit Documents and the Lease by
suit or suits or proceedings in equity, at law or in bankruptcy, and whether for
the specific performance of any covenant or agreement herein contained or in
execution or aid of any power herein granted, or for foreclosure hereunder, or
for the appointment of a receiver or receivers for the Property or for the
recovery of judgment for the indebtedness secured thereby or for the enforcement
of any other proper, legal or equitable remedy available under applicable laws.

          The Borrower shall be liable for any and all accrued and unpaid
amounts due hereunder before, after or during the exercise of any of the
foregoing remedies, including all reasonable legal fees and other reasonable
costs and expenses incurred by the Administrative Agent or any Lender by reason
of the occurrence of any Event of Default or the exercise of remedies with
respect thereto.

                      SECTION 7 THE ADMINISTRATIVE AGENT

          7.1   Appointment.
                -----------

          Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the
other Operative Agreements, and each such Lender irrevocably authorizes the
Administrative Agent, in such capacity, to execute the Operative Agreements as
agent for and on behalf of such Lender, to take such action on behalf of such
Lender under the provisions of this Agreement and the other Operative Agreements
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and other Operative
Agreements, together with such other powers as are reasonably incidental
thereto. Without limiting the generality of the foregoing, each of the Lenders
hereby specifically acknowledges the terms and provisions of the Participation
Agreement and directs the Administrative Agent to exercise such powers, make
such decisions and otherwise perform such duties as are delegated to the
Administrative Agent thereunder without being required to obtain any specific
consent with respect thereto from any Lender. Notwithstanding any provision to
the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or
any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Operative Agreement or otherwise exist against the
Administrative Agent.

          7.2   Delegation of Duties.
                --------------------

          The Administrative Agent may execute any of its duties under this
Agreement and the other Operative Agreements by or through agents or attorneys-
in-fact and shall be entitled to advice of counsel concerning all matters
pertaining to such duties. The Administrative Agent

                                       20
<PAGE>

shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

          7.3   Exculpatory Provisions.
                ----------------------

          Neither the Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates shall be (a) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Operative Agreement (except for its
or such Person's own gross negligence or willful misconduct) or (b) responsible
in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or the Lessee or any officer
thereof contained in this Agreement or any other Operative Agreement or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent under or in connection with, this
Agreement or any other Operative Agreement or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Operative Agreement or for any failure of the Borrower or the Lessee
to perform its obligations hereunder or thereunder. The Administrative Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Operative Agreement, or to inspect
the properties, books or records of the Borrower or the Lessee.

          7.4   Reliance by Administrative Agent.
                --------------------------------

          The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any Note, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and correct
and to have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (including, without limitation, counsel
to the Borrower or the Lessee), independent accountants and other experts
selected by the Administrative Agent. The Administrative Agent may deem and
treat the payee of any Note as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been
filed with the Administrative Agent. The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Operative Agreement unless it shall first receive such advice or
concurrence of the Majority Lenders as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. The Administrative Agent shall in all cases be fully protected
in acting, or in refraining from acting, under this Agreement and the other
Operative Agreements in accordance with a request of the Majority Lenders, and
such and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future holders of the Notes.

          7.5   Notice of Default.
                -----------------

          The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has

                                       21
<PAGE>

received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a "notice of default". In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders. The Administrative Agent shall take such action with respect to
such Default or Event of Default as shall be reasonably directed by the Majority
Lenders; provided that unless and until the Administrative Agent
         --------
shall have received such directions, the Administrative Agent may (but shall not
be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.

          7.6   Non-Reliance on Administrative Agent and Other Lenders.
                ------------------------------------------------------

          Each Lender expressly acknowledges that neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates has made any representations or warranties to it and that no act
by the Administrative Agent hereinafter taken, including any review of the
affairs of the Borrower or the Lessee, shall be deemed to constitute any
representation or warranty by the Administrative Agent to any Lender. Each
Lender represents to the Administrative Agent 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
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and the
Lessee and made its own decision to make its Loans hereunder and enter into this
Agreement. Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent 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 analysis, appraisals and decisions in taking or not taking
action under this Agreement and the other Operative Agreements, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrower, the Lessee and the Guarantor. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Borrower, the Lessee or the
Guarantor which may come into the possession of the Administrative Agent or any
of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

          7.7   Indemnification.
                ---------------

          The Lenders agree to indemnify the Administrative Agent, in its
capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Commitment Percentages in effect on the date on which indemnification
is sought under this Section 7.7 (or, if indemnification is sought after the
date upon which the Commitments shall have terminated and the Loans shall have
been paid in full, ratably in accordance with their Commitment Percentages
immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages,

                                       22
<PAGE>

penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever which may at any time (including, without limitation, at any
time following the payment of the Notes) be imposed on, incurred by or asserted
against any of them in any way relating to or arising out of, the Commitments,
this Agreement, any of the other Operative Agreements or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by any of them
under or in connection with any of the foregoing; provided that no Lender shall
                                                  --------
be liable for the payment or any portion of such liabilities, obligations,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the gross negligence or willful misconduct of the
Administrative Agent. The agreements in this Section 7.7 shall survive the
payment of the Notes and all other amounts payable hereunder.

          7.8   Administrative Agent in Its Individual Capacity.
                -----------------------------------------------

          The Administrative Agent and its Affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrower,
the Lessee or the Guarantor as though the Administrative Agent were not the
Administrative Agent hereunder and under the other Operative Agreements. With
respect to its Loans made or renewed by it and any Note issued to it, the
Administrative Agent shall have the same rights and powers under this Agreement
and the other Operative Agreements as any Lender and may exercise the same as
though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" shall include the Administrative Agent in its individual capacity.

          7.9   Successor Administrative Agent.
                ------------------------------

          The Administrative Agent may resign as Administrative Agent upon
thirty days' notice to the Lenders, the Borrower, the Lessee and the Guarantor.
If the Administrative Agent shall resign as Administrative Agent under this
Agreement, the Majority Lenders shall appoint from among the Lenders a successor
Administrative Agent which successor Administrative Agent shall be subject to
the approval of the Borrower and, so long as no Lease Event of Default shall
have occurred and be continuing, the Lessee and the Guarantor, such approval not
to be unreasonably withheld or delayed. If no successor Administrative Agent is
appointed prior to the effective date of the resignation of the resigning
Administrative Agent, the Administrative Agent may appoint, after consulting
with the Lenders and subject to the approval of the Borrower and, so long as no
Lease Event of Default shall have occurred and be continuing, the Lessee and the
Guarantor, such approval not to be unreasonably withheld or delayed, a successor
Administrative Agent from among the Lenders. If no successor Administrative
Agent has accepted appointment as Administrative Agent by the date which is
thirty days following a retiring Administrative Agent's notice of resignation,
the retiring agent's notice of resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of Administrative
Agent until such time, if any, as the Majority Lenders appoint a successor
Administrative Agent, as provided for above. Upon the effective date of such
resignation, only the Lessor or such successor Administrative Agent shall
succeed to all the rights, powers and duties of the retiring Administrative
Agent and the term "Administrative Agent" shall mean such successor agent and
the retiring Administrative Agent's rights, powers and duties in such capacity
shall be

                                       23
<PAGE>

terminated. After any retiring Administrative Agent resigns hereunder as
Administrative Agent, the provisions of this Article VII and Section 9.5 shall
inure to their respective benefit as to any actions taken or omitted to be taken
by it while it was Administrative Agent under this Agreement.

          7.10  Actions of Administrative Agent on Behalf of Holders.
                ----------------------------------------------------

          The parties hereto specifically acknowledge and consent to the Agent's
acting on behalf of the Holder as provided in the Participation Agreement, and,
in any such case, the Lenders acknowledge that the Holders shall be entitled to
vote as "Lenders" hereunder to the extent required or permitted by the Operative
Agreements (including specifically without limitation Section 10.6 of the
Participation Agreement).

             SECTION 8 MATTERS RELATING TO PAYMENT AND COLLATERAL

          8.1   Collection of Payments and Other Amounts.
                ----------------------------------------

          (a)   The Construction Agent and each Credit Party has agreed pursuant
to the terms of the Participation Agreement to pay to the Administrative Agent
any and all Rent and any and all other amounts of any kind or type owing by the
Lessee, the Guarantor or the Construction Agent to the Lessor or the Owner
Trustee under the Lease or any of the other Operative Agreements.  Promptly
after receipt, the Administrative Agent shall apply, in accordance with the
terms of this Section 8, such amounts received by the Construction Agent or any
Credit Party and all other payments, receipts and other consideration of any
kind whatsoever received by the Administrative Agent pursuant to the Security
Agreement or otherwise received by the Administrative Agent or any of the
Lenders in connection with the Collateral, the Security Documents or any of the
other Operative Agreements.

          (b)   Payments and other amounts received by the Administrative Agent
from time to time in accordance with the terms of subparagraph (a) shall be
applied as follows (subject to all events to Section 8.1(c)):

          (i)   Any such payment or amount identified as or deemed to be Basic
     Rent shall be applied and allocated by the Administrative Agent first,
                                                                     -----
     ratably to the Lenders and the Holders for application and allocation to
     the payment of interest on the Loans and thereafter the principal of the
     Loans which is due and payable on such date and to the payment of accrued
     Holder Yield with respect to the Holder Fundings and thereafter the portion
     of the Holder Fundings which is due on such date; and second, if no Default
                                                           ------
     or Event of Default is in effect, any excess shall be paid to such Person
     or Persons as the Lessee may designate; provided, that if a Default or
                                             --------
     Event of Default is in effect, such excess (if any) shall instead be held
     by the Administrative Agent until the earlier of (I) the first date
     thereafter on which no Default or Event of Default shall be in effect (in
     which case such payments or returns shall then be made to such other Person
     or Persons as the Lessee may designate) and (II) the Maturity Date or the
     Expiration Date, as the case may

                                       24
<PAGE>

     be (or, if earlier, the date of any Acceleration), in which case such
     amounts shall be applied and allocated in the manner contemplated by
     Section 8.1(b)(iv).

          (ii)   If on any date the Administrative Agent or the Lessor shall
     receive any amount in respect of (A) any Casualty or Condemnation pursuant
     to Sections 15.1(a) or 15.1(g) of the Lease (excluding any payments in
     respect thereof which are payable to the Lessee in accordance with the
     Lease or held by Lessor as security for performance of Lessee's obligations
     under the Lease), or (B) the Termination Value in connection with the
     delivery of a Termination Notice pursuant to Article XVI of the Lease, or
     (C) the Termination Value in connection with the exercise of the Purchase
     Option under Section 20.1 of the Lease or the exercise of the option of the
     Lessor to transfer the Properties to the Lessee pursuant to Section 20.3 of
     the Lease, or (D) any payment in an amount equal to the Termination Value
     for any or all Construction Period Properties required to be made or
     elected to be made by the Construction Agent to the Lessor pursuant to the
     terms of the Agency Agreement, then in each case, the Lessor shall be
     required to pay such amount received (1) if no Acceleration has occurred,
     to prepay the principal balance of the Loans on such date in an amount
     equal to ninety-seven percent (97%) of such payment and the remaining three
     percent (3%) of such payment shall be applied pro rata to the principal
     amount of outstanding Holder Fundings on such date until the Loans are paid
     in full, and to Holder Fundings thereafter, (2) if an Acceleration has
     occurred, to apply and allocate the proceeds respecting Sections
     8.1(b)(ii)(A) through 8.1(b)(ii)(D) in accordance with Section 8.1(b)(iii)
     hereof.

          (iii)  An amount equal to any payment identified as proceeds of the
     sale or other disposition (or lease upon the exercise of remedies) of the
     Properties or any portion thereof, whether pursuant to Article XXII of the
     Lease or the exercise of remedies under the Security Documents, the Lease
     or otherwise, and any payment in respect of excess wear and tear pursuant
     to Section 22.3 of the Lease (whether such payment relates to a period
     before or after the Construction Period Termination Date) shall be applied
     and allocated by the Administrative Agent first, ratably to the payment of
                                               -----
     the principal and interest of the Tranche B Loans then outstanding, second,
                                                                         ------
     to the extent such amount exceeds the maximum amount to be paid pursuant to
     the foregoing provisions of this paragraph (iii), ratably to the payment of
     the principal and interest of the Tranche A Loans then outstanding, third,
                                                                         -----
     to any and all other amounts owing under the Operative Agreements to the
     Lenders under the Tranche B Loans, fourth, to any and all other amounts
                                        ------
     owing under the Operative Agreements to the Lenders under the Tranche A
     Loans, fifth, ratably to the payment to the Holders of the outstanding
            -----
     principal balance of all Holder Fundings plus all outstanding Holder Yield
     with respect to such outstanding Holder Fundings, sixth, to any and all
                                                       -----
     other amounts owing under the Operative Agreements to the Holders, and
     seventh, to the extent moneys remain after application and allocation
     -------
     pursuant to clauses first through sixth above, to the Owner Trustee for
                         -----         -----
     application and allocation to any and all other amounts owing to the
     Holders or the Owner Trustee and as the Holders shall determine; provided,
                                                                      --------
     further, where no Event of Default shall exist and be continuing and a
     -------
     prepayment is made for any reason with respect to less than the full amount
     of the outstanding principal amount of the Loans and

                                       25
<PAGE>

     the outstanding Holder Fundings, the proceeds shall be applied and
     allocated ratably among the Lenders and among the Holders.

          (iv)  An amount equal to (A) any such payment identified as a payment
     of the Maximum Amount pursuant to the third paragraph of Section 2.1 of the
     Agency Agreement or any payment pursuant to Section 22.1(b) of the Lease
     (or otherwise) of the Maximum Residual Guarantee Amount (and any such
     lesser amount as may be required by Section 22.1(b) of the Lease) in
     respect of the Properties and (B) any other amount payable upon any
     exercise of remedies after the occurrence of an Event of Default not
     covered by Sections 8.1(b)(i) or 8.1(b)(iii) above (including without
     limitation any amount received in connection with an Acceleration which
     does not represent proceeds from the sale or liquidation of the Properties)
     and (C) any other amount payable by the Guarantor pursuant to Section 6B
     shall be applied and allocated by the Administrative Agent first, ratably,
                                                                -----
     to the payment of the principal and interest balance of Tranche A Loans
     then outstanding, second, ratably to the payment of the principal and
                       ------
     interest balance of the Tranche B Loans then outstanding, third, to the
                                                               -----
     payment of any other amounts owing to the Lenders hereunder or under any of
     the other Operative Agreements, fourth, ratably to the payment of the
                                     ------
     principal balance of all Holder Fundings plus all outstanding Holder Yield
     with respect to such outstanding Holder Fundings, and fifth, to the extent
                                                           -----
     moneys remain after application and allocation pursuant to clauses first
                                                                        -----
     through fourth above, to the Owner Trustee for application and allocation
     --------------
     to Holder Fundings and Holder Yield and any other amounts owing to the
     Holders or the Owner Trustee as the Holders shall determine.

          (v)   An amount equal to any such payment identified as Supplemental
     Rent and any payment by the Construction Agent not otherwise covered under
     Sections 8.1(b)(i)-(iv) hereof shall be applied and allocated by the
     Administrative Agent to the payment of any amounts then owing to the
     Administrative Agent, the Lenders, the Holders and the other parties to the
     Operative Agreements (or any of them) (other than any such amounts payable
     pursuant to the preceding provisions of this Section 8.1(b)) as shall be
     determined by the Administrative Agent in its reasonable discretion;
     provided, however, that Supplemental Rent received upon the exercise of
     --------  -------
     remedies after the occurrence and continuance of an Event of Default in
     lieu of or in substitution of the Maximum Residual Guarantee Amount or as a
     partial payment thereon shall be applied and allocated as set forth in
     Section 8.1(b)(iv).

                (vi)  The Administrative Agent in its reasonable judgment shall
     identify the nature of each payment or amount received by the
     Administrative Agent and apply and allocate each such amount in the manner
     specified above.

          (c)   Upon the payment in full of the Loans, the Holder Fundings and
all other amounts then due and owing by the Owner Trustee hereunder or under any
Credit Document and the payment in full of all other amounts then due and owing
to the Lenders, the Holders, the Administrative Agent, the Owner Trustee and the
other Financing Parties pursuant to the Operative Agreements, any moneys
remaining with the Administrative Agent shall be returned to

                                       26
<PAGE>

the Lessee. In the event of an Acceleration it is agreed that, prior to the
application and allocation of amounts received by the Administrative Agent in
the order described in Section 8.1(b) above or any distribution of money to the
Lessee, any such amounts shall first be applied and allocated to the payment of
(i) any and all sums advanced by the Administrative Agent in order to preserve
the Collateral or to preserve its Lien thereon, (ii) the expenses of retaking,
holding, preparing for sale or lease, selling or otherwise disposing or
realizing on the Collateral, or of any exercise by the Administrative Agent of
its rights under the Security Documents, together with reasonable attorneys'
fees and expenses and court costs and (iii) any and all other amounts reasonably
owed to the Administrative Agent under or in connection with the transactions
contemplated by the Operative Agreements (including without limitation any
accrued and unpaid administration fees).

          8.2   Certain Remedial Matters.
                ------------------------

          Notwithstanding any other provision of this Agreement or any other
Credit Document:

          (a)   the Borrower shall at all times retain all rights to Excepted
Payments payable to it and to demand, collect or commence an action at law to
obtain such payments and to enforce any judgment with respect thereto; and

          (b)   the Borrower and each Holder shall at all times retain the
right, but not to the exclusion of the Administrative Agent, (A) to receive from
the Lessee all notices, certificates and other documents and all information
that the Lessee is permitted or required to give or furnish to the "Borrower" or
the "Lessor" pursuant to the Lease, the Participation Agreement or any other
Operative Agreement, (B) to retain all rights with respect to insurance that
Article XIV of the Lease specifically confers upon the "Lessor", (C) to provide
such insurance as the Lessee shall have failed to maintain or as the Borrower or
any Holder may desire, and (D) to enforce compliance by the Lessee with the
provisions of Articles VIII, IX, X, XI, XIV and XVII of the Lease.

          8.3   Release of Properties, etc.
                ---------------------------

          If the Lessee shall at any time purchase any Property pursuant to the
terms of the Lease, or the Construction Agent shall purchase any Property
pursuant to the Agency Agreement, or if any Property shall be sold in accordance
with Article XXII of the Lease, then, upon satisfaction by the Borrower of its
obligation to prepay the Loans and Holder Fundings, the Administrative Agent is
hereby authorized and directed to release such Properties from the Liens created
by the Security Documents.  In addition, upon the termination of the Commitments
and the payment in full of the Loans and all other amounts owing by the Borrower
hereunder or under any other Credit Document the Administrative Agent is hereby
authorized and directed to release all of the Properties from the Liens created
by the Security Documents.  Upon request of the Borrower following any such
release, the Administrative Agent shall, at the sole cost and expense of the
Lessee, execute and deliver to the Borrower and the Lessee such documents as the
Borrower or the Lessee shall reasonably request to evidence such release.

                                       27
<PAGE>

          8.4   Excepted Payments.
                -----------------

          Notwithstanding any other provision of this Agreement or the Security
Documents, any Excepted Payment received at any time by the Administrative Agent
shall be distributed promptly to the Person entitled to receive such Excepted
Payment.

                            SECTION 9 MISCELLANEOUS

          9.1   Amendments and Waivers.
                ----------------------

          Neither this Agreement, any other Credit Document, nor any terms
hereof or thereof may be amended, supplemented or modified except in accordance
with the provisions of this Section 9.1.  The Majority Lenders may, or, with the
written consent of the Majority Lenders, the Administrative Agent may, from time
to time, (a) with the consent of the Lessee and the Guarantor (so long as no
Default or Event of Default shall have occurred and be continuing and,
respecting an amendment, supplement or modification to Section 8.1 only, so long
as Lessee has rights in any Property under the Operative Agreements), enter into
with the Borrower written amendments, supplements or modifications to the Credit
Documents (including, without limitation, any amendment to Section 8.1 hereof)
for the purpose of adding any provisions to the Credit Documents or changing in
any manner the rights of the Administrative Agent, the Lenders or the Borrower
thereunder or (b) waive, on such terms and conditions as the Majority Lenders or
the Administrative Agent, as the case may be, may specify in such instrument,
any of the requirements of the Credit Documents or any Default or Event of
Default and its consequences.  In addition, the Administrative Agent may from
time to time consent in writing to amendments, supplements, modifications or
waivers with respect to any Operative Agreement (other than the Credit
Documents), subject to receipt of the prior written consent of the Majority
Lenders and, so long as no Default or Event of Default shall have occurred and
be continuing, the Lessee and the Guarantor; provided, however, that so long as
                                             --------  -------
the Administrative Agent has no actual knowledge of the existence of an Event of
Default the Administrative Agent may grant waivers and/or consents with respect
to the terms and requirements of the Participation Agreement without the prior
consent of the Lenders to the extent provided therein (as such authority of the
Administrative Agent is more specifically described in Section 7.1 hereof).
Notwithstanding the foregoing, no such amendment, supplement, modification or
waiver shall (i) reduce the amount or extend the scheduled date of maturity of
any Note, or reduce the stated rate of any interest payable hereunder (other
than as a result of waiving the applicability of any post-default increase in
interest rates) or any Facility Fees payable under the Participation Agreement
or extend the scheduled date of any payment of such interest or Commitment Fees
or increase the amount or extend the expiration date of any Lender's Commitment,
in each case without the consent of each Lender directly affected thereby, or
(ii) amend, modify or waive any provision of this Section 9.1 or the definition
of Majority Lenders, or reduce the percentage specified in the definition of
Majority Lenders, or consent to the assignment or transfer by the Borrower of
any of its rights and obligations under the Credit Documents or release a
material portion of the Collateral (except in accordance with Section 8.3) or
release the Lessee from its obligations under the Lease

                                       28
<PAGE>

or otherwise alter any payment obligations of the Lessee to the Lessor under the
Operative Agreements, in each case without the written consent of all the
Lenders, or (iii) amend, modify or waive any provision of Section 7 without the
written consent of the then Administrative Agent or (iv) permit Advances for
Work in excess of the Construction Budget without the unanimous consent of the
Lenders and Holders, or (v) eliminate the automatic option (in the absence of
the unanimous election of the Lenders and the Holders) under Section 5.3(a) of
the Agency Agreement requiring that the Construction Agent pay certain
liquidated damages in exchange for the conveyance of a Property to the
Construction Agent or (vi) permit the extension of the Construction Period
Termination Date beyond the date that is three (3) years from the Initial
Closing Date without the unanimous consent of the Lenders and the Holders. Any
such waiver and any such amendment, supplement or modification shall apply
equally to each of the Lenders and shall be binding upon the Borrower, the
Lessee, the Guarantor, the Lenders and the Administrative Agent and all future
holders of the Notes. In the case of any waiver, the Borrower, the Lessee, the
Guarantor, the Lenders and the Administrative Agent shall be restored to their
former position and rights under the Credit Documents, and any Default or Event
of Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extent to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.

          Anything in this Agreement to the contrary notwithstanding, if at a
time when the conditions precedent set forth in Section 4.2 hereof to any Loan
hereunder are, in the opinion of the Majority Lenders, satisfied, any Lender
shall fail to fulfill its obligations to make such Loan (any such Lender, a
"Defaulting Lender") then, for so long as such failure shall continue, the
 -----------------
Defaulting Lender shall (unless the Borrower and the Majority Lenders,
determined as if the Defaulting Lender were not a "Lender" hereunder, shall
otherwise consent in writing) be deemed for all purposes relating to amendments,
modifications, waivers or consents under this Agreement (including, without
limitation, under this Section 9.1) to have no Loans, shall not be treated as a
"Lender" hereunder when performing the computation of Majority Lenders, and
shall have no rights under the preceding paragraph of this Section 9.1; provided
that any action taken by the other Lenders pursuant to this paragraph with
respect to the matters referred to in clause (i) through (vi) of the preceding
paragraph shall not be effective as against the Defaulting Lender.

          9.2   Notices.
                -------

          All notices, request and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or
made when delivered, or three Business Days after being deposited in the mail,
postage prepaid, or, in the case of telecopy notice, when received, addressed as
follows in the case of the Borrower and the Administrative Agent, and as set
forth in Schedule 1.1 in the case of the other parties hereto, or to such other
address as may be hereafter notified by the respective parties hereto and any
future holders of the Notes:

                                       29
<PAGE>

     The Borrower:

          First Security Bank, National Association
          79 South Main Street, 3rd Floor
          Salt Lake City, Utah 84111
          Attention: Mr. Val T. Orton
                     Corporate Trust Counsel
          Telephone: (801) 246-5300
          Telecopy:  (801) 246-5053

     Bank of America, N.A., as Administrative Agent:

          Bank of America, N.A.
          901 Main Street
          66th Floor
          Dallas, TX 75202
          Attention: Shelly K. Harper
          Telephone: (214) 209-0567
          Telecopy:  (214) 209-0604

provided that any notice, request or demand to or upon the Administrative Agent
--------
or the Lenders pursuant to Section 2.3, 2.5 2.6 or 2.7 shall not be effective
until received.

     A copy of any notice delivered hereunder shall also be delivered to the
Lessee, the Guarantor and the Legal Department of the Guarantor at the addresses
for notices set forth in Section 14.3 of the Participation Agreement.

          9.3   No Waiver; Cumulative Remedies.
                ------------------------------

          No failure to exercise and no delay in exercising, on the part of the
Administrative Agent or any Lender, any right, remedy, power or privilege
hereunder or under the other Credit Documents shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or future exercise thereof or the
exercise of any other right, remedy, power or privilege.  The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

          9.4   Survival of Representations and Warranties.
                ------------------------------------------

          All representations and warranties made hereunder, in the other Credit
Documents and in any document, certificate or statement delivered pursuant
hereto or in connection herewith shall survive the execution and delivery of
this Agreement and the Notes and the making of the Loans hereunder.

                                       30
<PAGE>

     9.5  Payment of Expenses and Taxes.
          -----------------------------

     The Borrower agrees to: (a) pay all reasonable out-of-pocket costs and
expenses of (i) the Administrative Agent whether or not the transactions herein
contemplated are consummated, in connection with the negotiation, preparation,
execution and delivery of the Operative Agreements and the documents and
instruments referred to therein and any amendment, waiver or consent relating
thereto (including, without limitation, the reasonable fees and disbursements of
Moore & Van Allen, PLLC) and (ii) the Administrative Agent and each of the
Lenders in connection with the enforcement of the Operative Agreements and the
documents and instruments referred to therein (including, without limitation,
the reasonable fees and disbursements of counsel for the Administrative Agent
and for each of the Lenders) and (b) pay and hold each of the Lenders harmless
from and against any and all present and future stamp and other similar taxes
with respect to the foregoing matters and save each of the Lenders harmless from
and against any all liabilities with respect to or resulting from any delay or
omission (other than to the extent attributable to such Lender) to pay such
taxes.

     9.6  Successors and Assigns; Participations and Assignments.
          ------------------------------------------------------

     This Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Administrative Agent, all future holders of the Notes
and their respective permitted successors and assigns, except that the Borrower
may not assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of each Lender.

     9.7  Participations.
          --------------

     Any Lender may, in the ordinary course of its business and in accordance
with applicable law, at any time sell to one or more banks, financial
institutions or other entities (each, a "Participant") participating interests
                                         -----------
in any Loan owing to such Lender, any Note held by such Lender, any Commitment
of such Lender or any other interest of such Lender hereunder and under the
other Operative Agreements; provided that any such sale of a participating
                            --------
interest shall be in a principal amount of at least $2,000,000.  In the event of
any such sale by a Lender of a participating interest to a Participant, such
Lender's obligations under this Agreement to the other parties to this Agreement
shall remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Note for
all purposes under this Agreement and the Notes, and the Borrower and the
Administrative Agent shall continue to deal solely and directly with such Lender
in connection with such Lender's rights and obligations under this Agreement and
the Notes.  In no event shall any Participant have any right to approve any
amendment or waiver of any provision of this Agreement or any other Operative
Agreement, or any consent to any departure by the Borrower or any other Person
therefrom, except to the extent that such amendment, waiver or consent would (a)
reduce the principal of, or interest on, any Loan or Note, or postpone the date
of the final maturity of any Loan or Note, or reduce the amount of any Facility
Fee, in each case to the extent subject to such participation or (b) release all
or substantially all of the Collateral.  The Borrower agrees that, while an
Event of Default shall have occurred and be continuing, if amounts outstanding
under this Agreement and the Notes are due or unpaid, or shall have

                                       31
<PAGE>

become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the maximum extent permitted by applicable law, be deemed
to have the right of setoff in respect of its participating interests in amounts
owing directly to it as a Lender under this Agreement or any Note, provided
                                                                   --------
that, in purchasing such participating interest, such Participant shall be
deemed to have agreed to share with the Lenders the proceeds thereof as provided
in Section 9.10(a) as fully as if it were a Lender hereunder. The Borrower also
agrees that each Participant shall be entitled to the benefits of Sections 2.11,
2.12 and 2.13 with respect to its participation in the Commitments and the Loans
outstanding from time to time as if it was a Lender; provided that, in the case
                                                     --------
of Section 2.13, such Participant shall have complied with the requirements of
said Section and provided, further, that no Participant shall be entitled to
                 --------  -------
receive any greater amount pursuant to any such Section than the transferor
Lender would have been entitled to receive in respect of the amount of the
participation transferred by such transferor Lender to such Participant had no
such transfer occurred.

     9.8  Assignments.
          -----------

     (a) Any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time and from time to time assign to any
Lender or any affiliate of any Lender or, with the consent, subject to Section
11.1 of the Participation Agreement, of the Borrower and the Administrative
Agent and, so long as no Default or Event of Default shall have occurred and be
continuing, the Lessee and the Guarantor (which in each case shall not be
unreasonably withheld or delayed), to an additional bank, financial institution
or other entity that is either organized under the laws of the United States or
any state thereof or is a foreign bank that operates a branch office in the
United States, (each, a "Purchasing Lender") all or any part of its rights and
                         -----------------
obligations under this Agreement and the other Operative Agreements pursuant to
an Assignment and Acceptance, substantially in the form of Exhibit B, executed
                                                           ---------
by such Purchasing Lender, such assigning Lender (and, in the case of a
Purchasing Lender that is not a Lender or an affiliate thereof, subject to
Section 11.1 of the Participation Agreement, by the Borrower and the
Administrative Agent) and delivered to the Administrative Agent for its
acceptance and recording in the Register; provided that no such assignment to a
                                          --------
Purchasing Lender (other than any Lender or any affiliate thereof) shall be in
an aggregate principal amount less than $5,000,000 (other than in the case of an
assignment of all of a Lender's interests under this Agreement and the Notes).
Upon such execution, delivery, acceptance and recording, from and after the
effective date determined pursuant to such Assignment and Acceptance, (x) the
Purchasing Lender thereunder shall be a party hereto and, to the extent provided
in such Assignment and Acceptance, have the rights and obligations of a Lender
hereunder with a Commitment as set forth therein, and (y) the assigning Lender
thereunder shall, to the extent provided in such Assignment and Acceptance, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all of the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such assigning Lender
shall cease to be a party hereto).  Notwithstanding anything to the contrary in
this Agreement, the consent of the Borrower shall not be required, and, unless
requested by the relevant Purchasing Lender and/or assigning Lender, new Notes
shall not be required to be executed and delivered by the Borrower, for any
assignment which occurs at any time when any of the events described in Section
6(g) shall have occurred and be continuing.

                                       32
<PAGE>

          (b) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and a Purchasing Lender (and, in the case of a Purchasing
Lender that is not a Lender or an affiliate thereof, by the Borrower and the
Administrative Agent) together with payment to the Administrative Agent of a
registration and processing fee of $2,500 (which shall not be payable by the
Borrower or the Lessee, except as otherwise provided in connection with an
assignment requested in accordance with Section 2.14(b)), the Administrative
Agent shall (i) promptly accept such Assignment and Acceptance and (ii) promptly
after the effective date determined pursuant thereto, record the information
contained therein in the Register and give notice of such acceptance and
recordation to the Lenders and the Borrower.  On or prior to such effective
date, the Borrower, at its own expense, shall execute and deliver to the
Administrative Agent new Notes (in exchange for the Notes of the assigning
Lender), each in an amount equal to the Commitment assumed or Loans purchased by
the relevant Purchasing Lender pursuant to such Assignment and Acceptance, and,
if the assigning Lender has retained a Commitment or any Loan hereunder, new
Notes to the order of the assigning Lender, each in an amount equal to the
Commitment or Loans retained by it hereunder.  Such new Notes shall be dated the
Effective Date and shall otherwise be in the form of the Notes replaced thereby.

          (c) Each Purchasing Lender (other than any Lender organized and
existing under the laws of the U.S. or any political subdivision in or of the
U.S.), by executing and delivering an Assignment and Acceptance,

              (A) agrees to execute and deliver to the Administrative Agent, as
     promptly as practicable, four signed copies (two for the Administrative
     Agent and two for delivery by the Administrative Agent to the Borrower) of
     Form 1001 or Form 4224 (or any successor form or comparable form) (it being
     understood that if the applicable form is not so delivered, payments under
     or in respect of this Agreement may be subject to withholding and
     deduction);

              (B) represents and warrants to the Borrower and the
     Administrative Agent that the form so delivered is true and accurate and
     that, as of the effective date of the applicable Assignment and Acceptance,
     each of such Purchasing Lender's Lending Offices is entitled to receive
     payments of principal and interest under or in respect of this Agreement
     without withholding or deduction for or on account of any taxes imposed by
     the U.S. Federal government;

              (C) agrees to annually hereafter deliver to each of the Borrower
     and the Administrative Agent not later than December 31 of the year
     preceding the year to which it will apply, two further properly completed
     signed copies of Form 1001 or Form 4224 (or any successor form or
     comparable form), as appropriate, unless an event has occurred which
     renders the relevant form inapplicable (it being understood that if the
     applicable form is not so delivered, payments under or in respect of this
     Agreement may be subject to withholding and deduction);

                                       33
<PAGE>

               (D) agrees to promptly notify the Borrower and the Administrative
     Agent in writing if it ceases to be entitled to receive payments of
     principal and interest under or in respect of this Agreement without
     withholding or deduction for or on account of any taxes imposed by the U.S.
     or any political subdivision in or of the U.S. (it being understood that
     payments under or in respect of this Agreement may be subject to
     withholding and deduction in such event);

               (E) acknowledges that in the event it ceases to be exempt from
     withholding and/or deduction of such taxes, the Administrative Agent may
     withhold and/or deduct the applicable amount from any payments to which
     such assignee Lender would otherwise be entitled, without any liability to
     such assignee Lender therefor; and

               (F) agrees to indemnify the Borrower and the Administrative Agent
     from and against any and all liabilities, obligations, losses, damages,
     penalties, actions, judgments, suits, costs or expenses that result from
     such assignee Lender's breach of any such representation, warranty or
     agreement.

          (d) Any Lender party to this Agreement may, from time to time and
without the consent of the Borrower or any other Person, may pledge or assign
for security purposes any portion of its Loans or any other interests in this
Agreement and the other Credit Documents to any Federal Reserve Bank.

     9.9  The Register; Disclosure; Pledges to Federal Reserve Banks.
          ----------------------------------------------------------

     (a) The Administrative Agent shall maintain at its address referred to
in Section 9.2 a copy of each Assignment and Acceptance delivered to it and a
register (the "Register") for the recordation of the names and addresses of the
               --------
Lenders, the Commitments of the Lenders, and the principal amount of the Loans
owing to each Lender from time to time.  The entries in the Register shall be
conclusive, in the absence of clearly demonstrable error, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loan recorded therein for all
purposes of this Agreement.  The Register shall be available for inspection by
the Borrower or any Lender at any reasonable time and from time to time upon
reasonable notice.

     (b) Nothing herein shall prohibit any Lender from pledging or assigning any
Note to any Federal Reserve Bank in accordance with applicable law.

     9.10  Adjustments; Set-off.
           --------------------

     (a) Except as otherwise expressly provided in Section 8.1 hereof where, and
to the extent, one Lender is entitled to payments prior to other Lende rs, if
any Lender (a "Benefitted Lender") shall at any time receive any payment of all
               -----------------
or part of its Loans, or interest thereon, or receive any collateral in respect
thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or
proceedings of the nature referred to in Section 6(g), or otherwise), in a
greater proportion than any such payment to or collateral received by any other
Lender, if any, in
                                       34
<PAGE>

respect of such other Lender's Loans, or interest thereon, such Benefitted
Lender shall purchase for cash from the other Lenders a participating interest
in such portion of each such other Lender's Loan, or shall provide such other
Lenders with the benefits of any such collateral, or the proceeds thereof, as
shall be necessary to cause such Benefitted Lender to share the excess payment
or benefits of such collateral or proceeds ratably with each of the Lenders;
provided however, that if all or any portion of such excess payment or benefits
-------- -------
is thereafter recovered from such Benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the event of such
recovery, but without interest.

     (b) In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights,
upon the occurrence of an Event of Default, the Administrative Agent and each
Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to the Borrower or to
any other Person, any such notice being hereby expressly waived, to set off and
to appropriate and apply any and all deposits (general or special) and any other
Indebtedness at any time held or owing by the Administrative Agent or such
Lender (including, without limitation, by branches and agencies of the
Administrative Agent or such Lender wherever located) to or for the credit or
the account of the Borrower against and on account of the obligations and
liabilities of the Borrower to the Administrative Agent or such Lender under
this Agreement or under any of the other Operative Agreements, including,
without limitation, all interests in obligations of the Borrower purchased by
any such Lender pursuant to Section 9.10(a), and all other claims of any nature
or description  arising out of or connected with this Agreement or any other
Operative Agreement, irrespective or whether or not the Administrative Agent or
such Lender shall have made any demand and although  said obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.

     9.11  Counterparts.
           ------------

     This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts (including by telecopy), and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument.  A set of the copies of this Agreement signed by all the
parties shall be lodged with the Borrower and the Administrative Agent.

     9.12  Severability.
           -------------

     Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

                                       35
<PAGE>

     9.13  Integration.
           -----------

     This Agreement and the other Credit Documents represent the agreement of
the Borrower, the Administrative Agent, and the Lenders with respect to the
subject matter hereof, and there are no promises, undertakings, representations
or warranties by the Administrative Agent or any Lender relative to subject
matter hereof not expressly set forth or referred to herein or in the other
Credit Documents.

     9.14  GOVERNING LAW.
           -------------

     THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF VIRGINIA.

     9.15  Submission To Jurisdiction; Waivers.
           -----------------------------------

     The Borrower hereby irrevocably and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding
relating to this Agreement and the other Credit Documents to which it is a
party, or for recognition and enforcement of any judgment in respect thereof, to
the non-exclusive general jurisdiction of the Courts of the Commonwealth of
Virginia, the courts of the United States of America for the Eastern District of
Virginia, and appellate courts from any thereof;

     (b) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail) postage prepaid, to the Borrower at its
address set forth in Section 9.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;

     (c) agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction; and

     (d) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section 9.15 any special, exemplary, punitive or consequential damages.

     9.16  Acknowledgments.
           ---------------

     Borrower hereby acknowledges that:

     (a) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duly to the Borrower arising out of or in connection with
this Agreement or any of the other Credit Documents, and the relationship
between the Administrative Agent and

                                       36
<PAGE>

the Lenders, on one hand, and the Borrower, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

     (b)   no joint venture is created hereby or by the other Credit Documents
or otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Borrower and the Lenders.

     9.17  WAIVERS OF JURY TRIAL.
           ---------------------

     THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

     9.18  Nonrecourse.
           -----------

     Anything to the contrary contained in this Agreement or in any other
Operative Agreement notwithstanding, neither the Borrower nor any officer,
director or shareholder thereof, nor any of the Borrower's successors or assigns
(all such Persons being hereinafter referred to collectively as the "Exculpated
                                                                     ----------
Persons"), shall be personally liable in any respect for any liability or
-------
obligation hereunder or under any other Operative Agreement including the
payment of the principal of, or interest on, the Notes, or for monetary damages
for the breach of performance of any of the covenants contained in this
Agreement, the Notes or any of the other Operative Agreements.  The
Administrative Agent and the Lenders agree that, in the event any of them
pursues any remedies available to them under this Agreement, the Notes or any
other Operative Agreement, neither the Administrative Agent nor the Lenders
shall have any recourse against the Borrower, nor any other Exculpated Person,
for any deficiency, loss or claim for monetary damages or otherwise resulting
therefrom and recourse shall be had solely and exclusively against the CORI
Trust Estate and as permitted under the Operative Agreements; but nothing
contained herein shall be taken to prevent recourse against or the enforcement
of remedies against the CORI Trust Estate in respect of any and all liabilities,
obligations and undertakings contained in this Agreement, the Notes or any other
Operative Agreement.  The Administrative Agent and the Lenders further agree
that the Borrower shall not be responsible for the payment of any amounts owing
hereunder (excluding principal and interest (other than Overdue Interest) in
respect of the Loans) (such non-excluded amounts, "Supplemental Amounts") except
                                                   --------------------
to the extent that payments of Supplemental Rent designated by the Lessee for
application to such Supplemental Amounts shall have been paid by the Lessee
pursuant to the Lease (it being understood that the failure by the Lessee for
any reason to pay any Supplemental Rent in respect of such Supplemental Amounts
shall nevertheless be deemed to constitute a default by the Borrower for the
purposes of Section 6(a)(ii)).  Notwithstanding the foregoing provisions of this
Section 9.18, nothing in this Agreement or any other Operative Agreement shall
(a) constitute a waiver, release or discharge of any obligation evidenced or
secured by this Agreement or any other Credit Document, (b) limit the right of
the Administrative Agent or any Lender to name the Borrower as a party defendant
in any action or suit for judicial foreclosure and sale under any Security
Document, or (c) affect in any way the validity or enforceability of

                                       37
<PAGE>

any guaranty (whether of payment and/or performance) given to the Lessor, the
Administrative Agent or the Lenders, or of any indemnity agreement given by the
Borrower, in connection with the Loans made hereunder.

     9.19  USURY SAVINGS PROVISION.
           -----------------------

     IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND CONTRACT IN STRICT
COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT. TO THE EXTENT
ANY PAYMENTS HEREUNDER ARE HEREINAFTER CHARACTERIZED BY ANY COURT OF COMPETENT
JURISDICTION AS THE REPAYMENT OF PRINCIPAL AND INTEREST THEREON, THIS SECTION
9.19 SHALL APPLY. ANY SUCH PAYMENTS SO CHARACTERIZED AS INTEREST MAY BE REFERRED
TO HEREIN AS "INTEREST." ALL AGREEMENTS AMONG THE PARTIES HERETO ARE HEREBY
LIMITED BY THE PROVISIONS OF THIS PARAGRAPH WHICH SHALL OVERRIDE AND CONTROL ALL
SUCH AGREEMENTS, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER WRITTEN
OR ORAL. IN NO WAY, NOR IN ANY EVENT OR CONTINGENCY (INCLUDING, BUT NOT LIMITED
TO, PREPAYMENT OR ACCELERATION OF THE MATURITY OF ANY OBLIGATION), SHALL ANY
INTEREST TAKEN, RESERVED, CONTRACTED FOR, CHARGED, OR RECEIVED UNDER THIS
AGREEMENT OR OTHERWISE, EXCEED THE MAXIMUM NONUSURIOUS AMOUNT PERMISSIBLE UNDER
APPLICABLE LAW. IF, FROM ANY POSSIBLE CONSTRUCTION OF ANY OF THE OPERATIVE
AGREEMENTS OR ANY OTHER DOCUMENT OR AGREEMENT, INTEREST WOULD OTHERWISE BE
PAYABLE IN EXCESS OF THE MAXIMUM NONUSURIOUS AMOUNT, ANY SUCH CONSTRUCTION SHALL
BE SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH AND SUCH AMOUNTS UNDER SUCH
DOCUMENTS OR AGREEMENTS SHALL BE AUTOMATICALLY REDUCED TO THE MAXIMUM
NONUSURIOUS AMOUNT PERMITTED UNDER APPLICABLE LAW, WITHOUT THE NECESSITY OF
EXECUTION OF ANY AMENDMENT OR NEW DOCUMENT OR AGREEMENT. IF THE AGENT OR ANY
LENDER SHALL EVER RECEIVE ANYTHING OF VALUE WHICH IS CHARACTERIZED AS INTEREST
WITH RESPECT TO THE OBLIGATIONS OWED HEREUNDER OR UNDER APPLICABLE LAW AND WHICH
WOULD, APART FROM THIS PROVISION, BE IN EXCESS OF THE MAXIMUM LAWFUL AMOUNT, AN
AMOUNT EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE INTEREST SHALL,
WITHOUT PENALTY, BE APPLIED TO THE REDUCTION OF THE COMPONENT OF PAYMENTS DEEMED
TO BE PRINCIPAL AND NOT TO THE PAYMENT OF INTEREST, OR REFUNDED TO BORROWER OR
ANY OTHER PAYOR THEREOF, IF AND TO THE EXTENT SUCH AMOUNT WHICH WOULD HAVE BEEN
EXCESSIVE EXCEEDS THE COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL. THE RIGHT TO
DEMAND PAYMENT OF ANY AMOUNTS EVIDENCED BY ANY OF THE OPERATIVE AGREEMENTS DOES
NOT INCLUDE THE RIGHT TO RECEIVE ANY INTEREST WHICH HAS NOT OTHERWISE ACCRUED ON
THE DATE OF SUCH DEMAND, AND NEITHER THE AGENT NOR ANY LENDER INTENDS TO CHARGE
OR RECEIVE ANY UNEARNED INTEREST IN THE EVENT OF SUCH DEMAND. ALL INTEREST PAID
OR AGREED TO BE PAID TO THE AGENT OR ANY

                                       38
<PAGE>

LENDER SHALL, TO THE EXTENT PERMITTED BY APPLICABLE LAW, BE AMORTIZED, PRORATED,
ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED TERM (INCLUDING ANY RENEWAL OR
EXTENSION) OF THIS AGREEMENT SO THAT THE AMOUNT OF INTEREST ON ACCOUNT OF SUCH
PAYMENTS DOES NOT EXCEED THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED BY APPLICABLE
LAW.

                            [Signature pages follow]

                                       39
<PAGE>

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

                              FIRST SECURITY BANK, NATIONAL ASSOCIATION, not
                              individually except as expressly stated herein,
                              but solely as Owner Trustee for Capital One Realty
                              Trust 1998-1

                              By:   /s/ DeAnn Madsen
                                    ----------------------------------------
                              Name:   DeAnn Madsen
                                      --------------------------------------
                              Title:   Assistant Trust Officer
                                       -------------------------------------

                       [Signatures Continue on Next Page]
<PAGE>

                              BANK OF AMERICA, N.A., as Administrative Agent,
                              and as a Lender

                              By:   /s/ Shelly K. Harper
                                    --------------------------------
                              Name:   Shelly K. Harper
                                      ------------------------------
                              Title:   Vice President
                                       -----------------------------

                       [Signatures Continue on Next Page]
<PAGE>

                              FIRST NATIONAL BANK OF CHICAGO, as a Lender

                              By:   /s/ Steven D. Franklin
                                    ----------------------------------
                              Name:   Steven D. Franklin
                                      --------------------------------
                              Title:   Vice President
                                       -------------------------------

                       [Signatures Continue on Next Page]
<PAGE>

                              BARCLAYS BANK PLC, as a Lender

                              By:   /s/ Richard Herder
                                    -----------------------------------
                              Name:   Richard Herder
                                      ---------------------------------
                              Title:   Director
                                       --------------------------------

                       [Signatures Continue on Next Page]
<PAGE>

                              FIRST UNION NATIONAL BANK, as a Lender

                              By:   /s/ Carrie H. McAllister
                                    -------------------------------------
                              Name:   Carrie H. Mcallister
                                      -----------------------------------
                              Title:   Vice President
                                       ----------------------------------

                       [Signatures Continue on Next Page]
<PAGE>

                              KBC BANK N.V., as a Lender

                              By:   /s/ Robert Snauffer
                                    --------------------------------
                              Name:   Robert Snauffer
                                      ------------------------------
                              Title:   First Vice President
                                       -----------------------------

                               By:   /s/ Robert N. Surdam, Jr.
                                     -------------------------------
                              Name:   Robert N. Surdam, Jr.
                                      ------------------------------
                              Title:    Vice President
                                       -----------------------------

                       [Signatures Continue on Next Page]
<PAGE>

                              CREDIT LYONNAIS - NY BRANCH, as a Lender

                              By:  /s/ W. Jay Buckley
                                 -----------------------------------
                              Name:  W. Jay Buckley
                                   ---------------------------------
                              Title: Vice President
                                    --------------------------------

                      [Signatures Continue on Next Page]
<PAGE>

                              BMO GLOBAL CAPITAL SOLUTIONS, INC., as a Lender

                              By:  /s/ Joseph A. Bliss
                                 -----------------------------------
                              Name:  Joseph A. Bliss
                                   ---------------------------------
                              Title: Vice President
                                    --------------------------------

                      [Signatures Continue on Next Page]
<PAGE>

                              BANK OF MONTREAL, as a Lender

                              By: /s/ Kanu Modi
                                 -----------------------------------
                              Name:  Kanu Modi
                                   ---------------------------------
                              Title: Director
                                    --------------------------------
<PAGE>

                                 Schedule 1.1
                                 ------------
<TABLE>
<CAPTION>

                                              Tranche A                                      Tranche B
                                              Commitment                                     Commitment
                                        -------------------------                    -------------------------
Name and Address of Lender              Amount         Percentage                    Amount         Percentage
--------------------------              ------         ----------                    ------         ----------
<S>                                     <C>            <C>                           <C>            <C>
Bank of America, N.A.                   $15,344,476.74 20.0581%                      $1,824,273.26  18.1520%
901 Main Street, 66th Floor
Dallas, TX  75202
Attn:      Shelly K. Harper, Vice President
Telephone: 214-209-0567
Facsimile: 214-209-0604

First National Bank of Chicago          $    9,562,500 12.5000%                      $   1,256,250  12.5000%
1 First National Plaza, Suite 0155
Chicago, IL  60670
Attn:      R. Eric Weidelman
Telephone: 312-732-5294
Facsimile: 312-732-6222

Barclays Bank PLC                       $    9,562,500 12.5000%                      $   1,256,250  12.5000%
222 Broadway
New York, NY 10038
Attn:      Richard Herder
Telephone: 212-412-7660
Facsimile: 212-412-5610

First Union National Bank               $    9,562,500 12.5000%                      $   1,256,250  12.5000%
7 N. 8th Street, VA  3246
Richmond, VA  23219
Attn:      Carrie H. McAllister, Vice President
Telephone: 804-771-7294
Facsimile: 804-771-7577

KBC Bank, N.V. - Atlanta Rep. Office    $ 9,859,011.63 12.8876%                      $1,390,988.37  13.8407%
1349 W. Peachtree St., Suite 1750
Atlanta, GA  30309
Attn:      Jackie Brunetto, Vice President
Telephone: 404-876-2566
Facsimile: 404-876-3212

Credit Lyonnais - NY Branch             $ 9,859,011.63 12.8876%                      $1,390,988.37  13.8407%
1301 6th Avenue
New York, NY  10019
Attn:      Jay Buckley, Vice President
Telephone: 212-261-7430
Facsimile: 212-261-3401
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                              Tranche A                                      Tranche B
                                              Commitment                                     Commitment
                                        -------------------------                   ---------------------------
Name and Address of Lender              Amount         Percentage                    Amount          Percentage
--------------------------              ------         ----------                    ------          ----------
<S>                                     <C>            <C>                           <C>             <C>
Bank of Montreal                        $  12,750,000  16.6667%                      $         0.00   0.0000%
115 S. LaSalle St., 12th Floor
Chicago, IL 60603
Attn:       Kanu Modi, Director
Telephone:  312-750-3891
Facsimile:  312-756-6057

BMO Global Capital Solutions, Inc.      $        0.00   0.0000%                       $1,674,999.99  16.6667%
115 So LaSalle St. 13th Floor
Chicago, IL 60603
Attn:  Joe Bliss
Telephone:
Facsimile:

Total                                   $  76,500,000      100%                       $10,050,000        100%
</TABLE>
<PAGE>

                                                                     Exhibit A-1
                                                                     -----------

                                TRANCHE A NOTE
                          (Capital One Realty, Inc.)
$______________                                                  _______________
                                                                 _______________

     FOR VALUE RECEIVED, the undersigned, FIRST SECURITY BANK, NATIONAL
ASSOCIATION, not in its individual capacity, but solely as Owner Trustee for the
Capital One Realty Trust 1998-1 (the "Borrower"), hereby unconditionally
                                      --------
promises to pay to the order of [Lender] (the "Lender") at the office of
                                               ------
______________________ ______________________________________________
________________________ in lawful money of the United States of America and in
immediately available funds, on the Maturity Date, the principal amount of (a)
_________________________ ____________________________________ NO/100 DOLLARS
($_____________), or, if less, (b) the aggregate unpaid principal amount of all
Loans made by the Lender to the Borrower pursuant to Section 2.1 of the Credit
Agreement (as defined below).  The Borrower further agrees to pay interest in
like money at such office on the unpaid principal amount hereof from time to
time outstanding at the rates and on the dates specified in Section 2.8 of such
Credit Agreement.

     The holder of this Note is authorized to endorse on the schedules annexed
hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof the date, Type and amount of each Loan
made pursuant to the Credit Agreement and the date and amount of each payment or
prepayment of principal thereof, each continuation thereof and each conversion
of all or a portion thereof to another Type.  Each such endorsement shall
constitute prima facie evidence of the accuracy of the information endorsed.
           ----- -----
The failure to make any such endorsement or any error in such endorsement shall
not affect the obligations of the Borrower in respect of such Loan.

     This Note (a) is one of the Notes referred to in the Credit Agreement dated
September 3, 1999 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among the Borrower, the Lender, the other banks
           ----------------
and financial institutions from time to time parties thereto and Bank of
America, N.A., as Administrative Agent, (b) is subject to the provisions of the
Credit Agreement (including, without limitation, Section 9.18 thereof) and (c)
is subject to optional and mandatory prepayment in whole or in part as provided
in the Credit Agreement.  Reference is hereby made to the Credit Documents for a
description of the properties and assets in which a security interest has been
granted, the nature and extent of the security and the guarantees, the terms and
conditions upon which the security interests and each guarantee were granted and
the rights of the holder of this Note in respect thereof.

     Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
<PAGE>

     All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

     Unless otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit Agreement.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE COMMONWEALTH OF VIRGINIA.

                              FIRST SECURITY BANK, NATIONAL ASSOCIATION, not
                              individually, but solely as Owner Trustee for
                              Capital One Realty Trust 1998-1

                              By:_____________________________________
                              Name:
                              Title:
<PAGE>

                                                                     Exhibit A-2
                                                                     -----------

                                TRANCHE B NOTE
                          (Capital One Realty, Inc.)

$______________                                                  _______________
                                                                 _______________

     FOR VALUE RECEIVED, the undersigned, FIRST SECURITY BANK, NATIONAL
ASSOCIATION, not in its individual capacity, but solely as Owner Trustee for the
Capital One Realty Trust 1998-1 (the "Borrower"), hereby unconditionally
                                      --------
promises to pay to the order of [Lender] (the "Lender") at the office of
                                               ------
_____________  _________________________________________________________________
in lawful money of the United States of America and in immediately available
funds, on the Maturity Date, the principal amount of (a) _______________________
____________________________________ NO/100 DOLLARS ($_____________), or, if
less, (b) the aggregate unpaid principal amount of all Loans made by the Lender
to the Borrower pursuant to Section 2.1 of the Credit Agreement (as defined
below). The Borrower further agrees to pay interest in like money at such office
on the unpaid principal amount hereof from time to time outstanding at the rates
and on the dates specified in Section 2.8 of such Credit Agreement.

     The holder of this Note is authorized to endorse on the schedules annexed
hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof the date, Type and amount of each Loan
made pursuant to the Credit Agreement and the date and amount of each payment or
prepayment of principal thereof, each continuation thereof and each conversion
of all or a portion thereof to another Type.  Each such endorsement shall
constitute prima facie evidence of the accuracy of the information endorsed.
           ----- -----
The failure to make any such endorsement or any error in such endorsement shall
not affect the obligations of the Borrower in respect of such Loan.

     This Note (a) is one of the Notes referred to in the Credit Agreement dated
September 3, 1999 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among the Borrower, the Lender, the other banks
           ----------------
and financial institutions from time to time parties thereto and Bank of
America, N.A., as Administrative Agent, (b) is subject to the provisions of the
Credit Agreement (including, without limitation, Section 9.18 thereof) and (c)
is subject to optional and mandatory prepayment in whole or in part as provided
in the Credit Agreement.  Reference is hereby made to the Credit Documents for a
description of the properties and assets in which a security interest has been
granted, the nature and extent of the security and the guarantees, the terms and
conditions upon which the security interests and each guarantee were granted and
the rights of the holder of this Note in respect thereof.

     Upon the occurrence of any one or more of the Events of Default, all
amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable, all as provided in the Credit Agreement.
<PAGE>

     All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

     Unless otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit Agreement.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE COMMONWEALTH OF VIRGINIA.

                              FIRST SECURITY BANK, NATIONAL ASSOCIATION, not
                              individually, but solely as Owner Trustee for
                              Capital One Realty Trust 1998-1

                              By:___________________________________
                              Name:
                              Title:

                                      -5-
<PAGE>

                                                                       Exhibit B
                                                                       ---------

                           ASSIGNMENT AND ACCEPTANCE

     Reference is made to the Credit Agreement (Capital One Realty, Inc.), dated
as of September 3, 1999 (as amended, supplemented or otherwise modified from
time to time, the "Credit Agreement"), among FIRST SECURITY BANK, NATIONAL
                   ----------------
ASSOCIATION, not in its individual capacity, but solely as Owner Trustee for the
Capital One Realty Trust 1998-1 (the "Owner Trustee" or the "Borrower"), the
                                      -------------          --------
Lenders named therein and Bank of America, N.A., as Administrative Agent.
Unless otherwise defined herein, terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

     ____________________ (the "Assignor") and _______________ (the "Assignee")
                                --------                             --------
agree as follows:

     The Assignor hereby irrevocably sells and assigns to the Assignee without
recourse to the Assignor, and the Assignee hereby irrevocably purchases and
assumes from the Assignor without recourse to the Assignor, as of the Effective
Date (as defined below), a ___% interest (the "Assigned Interest") in and to the
                                               -----------------
Assignor's rights and obligations under the Credit Agreement with respect to the
credit facility contained in the Credit Agreement as are set forth on Schedule 1
hereto (the "Assigned Facility"), in a principal amount for the Assigned
             -----------------
Facility as set forth on Schedule 1.

     The Assignor (a) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or any other Operative
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other Operative Agreement or
any other instrument or document furnished pursuant thereto, other than that it
has not created any adverse claim upon the interest being assigned by it
hereunder and that such interest is free and clear of any such adverse claim;
(b) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower, or any other obligor or the
performance or observance by the Borrower, or any other obligor of any of their
respective obligations under the Credit Agreement or any other Operative
Agreement or any other instrument or document furnished pursuant hereto or
thereto; and (c) attaches the Note held by it evidencing the Assigned Facility
and requests that the Administrative Agent exchange such Note for a new Note
payable to the Assignee and (if the Assignor has retained any interest in the
Assigned Facility) a new Note payable to the Assignor in the respective amounts
which reflect the assignment being made hereby (and after giving effect to any
other assignments which have become effective on the Effective Date).

     The Assignee (a) represents and warrants that it is legally authorized to
enter into this Assignment and Acceptance; (b) confirms that it has received
copies of the Operative Agreements, and such other documents and information as
it has deemed appropriate to make its
<PAGE>

own credit analysis and decision to enter into this Assignment and Acceptance;
(c) agrees that it will, independently and without reliance upon the Assignor,
the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement, the
other Operative Agreements or any other instrument or document furnished
pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent
to take such action as agent on its behalf and to exercise such powers and
discretion under the Credit Agreement, the other Operative Agreements or any
other instrument or document furnished pursuant hereto or thereto as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by the
provisions of the Credit Agreement and the other Operative Agreements to which
Assignee is a party and will perform in accordance herewith all the obligations
which by the terms of the Credit Agreement and the other Operative Agreements to
which Assignee is a party are required to be performed by it as a Lender
including, if it is organized under the laws of a jurisdiction outside the U.S.,
its obligation pursuant to Section 2.13(b) of the Credit Agreement.

     The effective date of this Assignment and Acceptance shall be ________,
19__ (the "Effective Date").  Following the execution of this Assignment and
           --------------
Acceptance, it will be delivered to the Administrative Agent for acceptance by
it and recording by the Administrative Agent pursuant to Section 9.9 of the
Credit Agreement, effective as of the Effective Date (which shall not, unless
otherwise agreed to by the Administrative Agent, be earlier than five Business
Days after the date of such acceptance and recording by the Administrative
Agent).

     Upon such acceptance and recording, 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
Assignee whether such amounts have accrued prior to the Effective Date or accrue
subsequent to the Effective Date.  The Assignor and the Assignee shall make all
appropriate adjustments in payments by the Administrative Agent for periods
prior to the Effective Date or with respect to the making of this assignment
directly between themselves.

     From and after the Effective Date, (a) the Assignee shall be a party to the
Credit Agreement and, to the extent provided in this Assignment and Acceptance,
have the rights and obligations of a Lender thereunder and under the other
Operative Agreements and shall be bound by the provisions thereof and (b) the
Assignor shall, to the extent provided in this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Credit
Agreement and the other Operative Agreements.

     This Assignment and Acceptance shall be governed by and construed in
accordance with the laws of the State of Commonwealth of Virginia.

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed as of the date first above written by their respective
duly authorized officers on Schedule 1 hereto.

                                      -7-
<PAGE>

[Name of Assignee]                              [Name of Assignee]

By:____________________________                 By:__________________________
Name:                                           Name:
Title:                                          Title:

Consented To:

                              FIRST SECURITY BANK, NATIONAL ASSOCIATION, not
                              individually, but solely as Owner Trustee for
                              Capital One Realty Trust 1998-1

                              By:____________________________________________
                              Name:
                              Title:

                              BANK OF AMERICA, N.A., as Administrative Agent

                              By:___________________________________________
                              Name:
                              Title:

                              [consents required only to the extent expressly
                              provided in Section 9.8 of the Credit Agreement]

                                      -3-
<PAGE>

                                  SCHEDULE 1
                         TO ASSIGNMENT AND ACCEPTANCE
         RELATING TO THE CREDIT AGREEMENT (CAPITAL ONE REALTY, INC.),
                         DATED AS OF AUGUST 31, 1999,
                                     AMONG
                   FIRST SECURITY BANK, NATIONAL ASSOCIATION
                               NOT INDIVIDUALLY,
                         BUT SOLELY AS OWNER TRUSTEE,
                           THE LENDERS NAMED THEREIN
                                      AND
                BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT
        FOR THE LENDERS (IN SUCH CAPACITY, THE "ADMINISTRATIVE AGENT")
                                                --------------------

________________________________________________________________________________

Name of Assignor:

Name of Assignee:

Effective Date of Assignment:

          Credit                 Principal                Commitment
     Facility Assigned        Amount Assigned         Percentage Assigned
     -----------------        ---------------         -------------------

                               $____________           ____________%

[Name of Assignor]                              [Name of Assignee]

By:____________________________                 By:__________________________
Name:                                           Name:
Title:                                          Title:

                                      -2-
<PAGE>

                                      -2-<PAGE>

                                 Exhibit 10.22
                                 -------------

                                LEASE AGREEMENT
                          (Capital One Realty, Inc.)

                        (Tax Retention Operating Lease)
                         Dated as of September 3, 1999

                                    between

                  FIRST SECURITY BANK, NATIONAL ASSOCIATION,
                               not individually,
                          but solely as Owner Trustee
                  under the Capital One Realty Trust 1998-1,
                                   as Lessor

                                      and

                           CAPITAL ONE REALTY, INC.,
                                   as Lessee

-------------------------------------------------------------------------------
This Lease Agreement is subject to a security interest in favor of Bank of
America, N.A., as Administrative Agent (the "Agent") under a Security Agreement
dated as of September 3, 1999, between First Security Bank, National
Association, not individually except as expressly stated therein, but solely as
Owner Trustee under the Capital One Realty Trust 1998-1 and the Agent, as
amended, modified, supplemented, restated and/or replaced from time to time.
This Lease Agreement has been executed in several counterparts.  To the extent,
if any, that this Lease Agreement constitutes chattel paper (as such term is
defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction), no security interest in this Lease Agreement may be created
through the transfer or possession of any counterpart other than the original
counterpart containing the receipt therefor executed by the Agent on the
signature page hereof.

                                       1
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                   <C>
ARTICLE I............................................................................   1
     1.1 Definitions.................................................................   1
     1.2 Interpretation..............................................................   2
ARTICLE II...........................................................................   2
     2.1 Property....................................................................   2
     2.2 Lease Term..................................................................   2
     2.3 Title.......................................................................   2
     2.4 Lease Supplements...........................................................   2
ARTICLE III..........................................................................   3
     3.1 Rent........................................................................   3
     3.2 Payment of Basic Rent.......................................................   3
     3.3 Supplemental Rent...........................................................   3
     3.4 Performance on a Non-Business Day...........................................   4
     3.5 Rent Payment Provisions.....................................................   4
ARTICLE IV...........................................................................   4
     4.1 Taxes; Utility Charges......................................................   4
ARTICLE V............................................................................   5
     5.1 Quiet Enjoyment.............................................................   5
ARTICLE VI...........................................................................   5
     6.1 Net Lease...................................................................   5
     6.2 No Termination or Abatement.................................................   6
ARTICLE VII..........................................................................   6
     7.1 Ownership of the Property...................................................   6
ARTICLE VIII.........................................................................   7
     8.1 Condition of the Property...................................................   7
     8.2 Possession and Use of the Property..........................................   8
ARTICLE IX...........................................................................   9
     9.1 Compliance With Legal Requirements and Insurance Requirements...............   9
ARTICLE X............................................................................   9
     10.1 Maintenance and Repair; Return.............................................   9
     10.2 Environmental Inspection...................................................  10
ARTICLE XI...........................................................................  11
     11.1 Modifications..............................................................  11
ARTICLE XII..........................................................................  11
     12.1 Warranty of Title..........................................................  11
ARTICLE XIII.........................................................................  12
     13.1 Permitted Contests Other Than in Respect of Indemnities....................  12
ARTICLE XIV..........................................................................  13
     14.1 Public Liability and Workers' Compensation Insurance.......................  13
     14.2 Permanent Hazard and Other Insurance.......................................  13
     14.3 Coverage...................................................................  14
ARTICLE XV...........................................................................  15
     15.1 Casualty and Condemnation..................................................  15
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                    <C>
     15.2  Environmental Matters......................................................  17
     15.3  Notice of Environmental Matters............................................  17
ARTICLE XVI...........................................................................  18
     16.1  Termination Upon Certain Events............................................  18
     16.2  Procedures.................................................................  18
ARTICLE XVII..........................................................................  18
     17.1  Lease Events of Default....................................................  18
     17.2  Surrender of Possession....................................................  21
     17.3  Reletting..................................................................  21
     17.4  Damages....................................................................  21
     17.5  Power of Sale..............................................................  22
     17.6  Final Liquidated Damages...................................................  22
     17.7  Lessee's Purchase Option During Default....................................  23
     17.8  Waiver of Certain Rights...................................................  23
     17.9  Assignment of Rights Under Contracts.......................................  23
     17.10 Remedies Cumulative........................................................  24
ARTICLE XVIII.........................................................................  24
     18.1  Lessor's Right to Cure Lessee's Lease Defaults.............................  24
ARTICLE XIX...........................................................................  24
     19.1  Provisions Relating to Lessee's Exercise of its Purchase Option............  24
     19.2  No Purchase or Termination With Respect to Less than All of a Property.....  24
ARTICLE XX............................................................................  25
     20.1  Purchase Option or Sale Option-General Provisions..........................  25
     20.2  Lessee Purchase Option.....................................................  26
     20.3  Third Party Sale Option....................................................  26
ARTICLE XXI...........................................................................  27
     21.1  [Intentionally Omitted]....................................................  27
ARTICLE XXII..........................................................................  27
     22.1  Sale Procedure.............................................................  27
     22.2  Application of Proceeds of Sale............................................  29
     22.3  Indemnity for Excessive Wear...............................................  29
     22.4  Appraisal Procedure........................................................  29
     22.5  Certain Obligations Continue...............................................  30
ARTICLE XXIII.........................................................................  30
     23.1  Holding Over...............................................................  30
ARTICLE XXIV..........................................................................  31
     24.1  Risk of Loss...............................................................  31
ARTICLE XXV...........................................................................  31
     25.1  Assignment.................................................................  31
     25.2  Subleases..................................................................  31
ARTICLE XXVI..........................................................................  32
     26.1  No Waiver..................................................................  32
ARTICLE XXVII.........................................................................  32
     27.1  Acceptance of Surrender....................................................  32
     27.2  No Merger of Title.........................................................  32
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                   <C>
ARTICLE XXVIII.......................................................................  33
     28.1  Incorporation of Covenants................................................  33
ARTICLE XXIX.........................................................................  34
     29.1  Notices...................................................................  34
ARTICLE XXX..........................................................................  35
     30.1  Miscellaneous.............................................................  35
     30.2  Amendments and Modifications..............................................  35
     30.3  Successors and Assigns....................................................  35
     30.4  Headings and Table of Contents............................................  36
     30.5  Counterparts..............................................................  36
     30.6  GOVERNING LAW.............................................................  36
     30.7  Calculation of Rent.......................................................  36
     30.8  Memoranda of Lease and Lease Supplements..................................  36
     30.9  Allocations between the Lenders and the Holders...........................  36
     30.10 Limitations on Recourse...................................................  37
     30.11 WAIVERS OF JURY TRIAL.....................................................  37
     30.12 Exercise of Lessor Rights.................................................  37
     30.13 Submission To Jurisdiction; Waivers.......................................  37
     30.14 USURY SAVINGS PROVISION...................................................  38
</TABLE>

                                      iii
<PAGE>

EXHIBITS
--------

EXHIBIT A      Lease Supplement No. ___
EXHIBIT B      Memorandum of Lease and Lease Supplement No.___

                                      iv
<PAGE>

                                LEASE AGREEMENT
                                ---------------
                          (Capital One Realty, Inc.)

                   (Tax Retention Operating Lease Agreement)

     THIS LEASE AGREEMENT (Capital One Realty, Inc.) (Tax Retention Operating
Lease) (as amended, supplemented or modified from time to time, this "Lease"),
                                                                      -----
dated as of September 3, 1999, is between FIRST SECURITY BANK, NATIONAL
ASSOCIATION, a national banking association, having its principal office at 79
South Main Street, Salt Lake City, Utah  84111, not individually, but solely as
Owner Trustee under the Capital One Realty Trust 1998-1, as lessor (the
"Lessor"), and CAPITAL ONE REALTY, INC., a Delaware corporation, having its
 ------
principal place of business at 2980 Fairview Park Drive, Suite 1300, Falls
Church, VA  22042, as lessee (the "Lessee").
                                   ------

                             W I T N E S S E T H:
                             - - - - - - - - - -

     A.       WHEREAS, subject to the terms and conditions of the Agency
Agreement, Lessor will (i) purchase or ground lease various parcels of real
property, some of which will (or may) have existing Improvements thereon, from
one or more third parties designated by Lessee and (ii) fund the development,
refurbishment and construction by the Construction Agent of Improvements on such
real property; and

     B.       WHEREAS, the Basic Term shall commence with respect to each
Property upon the Completion of such Property (the "Basic Term Commencement
                                                    -----------------------
Date").

     C.       WHEREAS, Lessor desires to lease to Lessee, and Lessee desires to
lease from Lessor, each Property;

     NOW, THEREFORE, in consideration of the foregoing, and of other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                   ARTICLE I

     1.1      Definitions.
              ------------

     Capitalized terms used but not otherwise defined in this Lease have the
respective meanings specified in Appendix A to the Participation Agreement of
                                 ----------
even date herewith (as such may be amended, modified, supplemented, restated
and/or replaced from time to time, the "Participation Agreement") among the
                                        -----------------------
Lessee, the Construction Agent, Capital One Bank, as Guarantor, First Security
Bank, National Association, not individually, except as expressly stated
therein, as Owner Trustee under the Capital One Realty Trust 1998-1, the
Holders, the Lenders and the Agent.

<PAGE>

     1.2      Interpretation.
              --------------

     The rules of usage set forth in Appendix A to the Participation Agreement
                                     ----------
shall apply to this Lease.

                                  ARTICLE II

     2.1      Property.
              --------

     Subject to the terms and conditions hereinafter set forth and contained in
the respective Lease Supplement relating to each Property, Lessor hereby leases
to Lessee and Lessee hereby leases from Lessor, each Property.  Each Property is
(or will be) legally described in the applicable Lease Supplement.

     2.2      Lease Term.
              ----------

     The basic term of this Lease with respect to each Property (the "Basic
                                                                      -----
Term") shall begin upon the Basic Term Commencement Date and shall end on the
----
third annual anniversary of the Initial Closing Date (the "Basic Term Expiration
                                                           ---------------------
Date"), unless the Basic Term is earlier terminated or the term of this Lease is
----
renewed (as described below) in accordance with the provisions of this Lease.

     To the extent no Default or Event of Default has occurred and is
continuing, and if Lessee has not provided written notice to Lessor at least one
hundred twenty (120) days prior to the Basic Term Expiration Date of its
determination to exercise its purchase option or sale option under Article XX
hereof, the term of this Lease for each Property shall be automatically extended
for one (1) additional term of one (1) year's duration from the Basic Term
Expiration Date (the "Renewal Term"); provided, that the expiration date for
                      ------------    --------
such Renewal Term for each Property shall not be later than the fourth annual
anniversary of the Initial Closing Date.

     2.3      Title.
              -----

     Each Property is leased to Lessee without any representation or warranty,
express or implied, by Lessor and subject to the rights of parties in possession
(if any), the existing state of title (including, without limitation, the
Permitted Exceptions) and all applicable Legal Requirements.  Lessee shall in no
event have any recourse against Lessor for any defect in title to any Property
other than for Lessor Liens.

     2.4      Lease Supplements.
              -----------------

     On or prior to each Basic Term Commencement Date, Lessee and Lessor shall
each execute and deliver a Lease Supplement for the Property to be leased
effective as of such Basic Term Commencement Date in substantially the form of
Exhibit A hereto.
---------

                                      -2-
<PAGE>

                                  ARTICLE III
     3.1      Rent.
              ----

              (a)   Lessee shall pay Basic Rent in arrears on each Payment Date,
     and on any date on which this Lease shall terminate with respect to any or
     all Properties during the Term; provided, however, with respect to each
     individual Property Lessee shall have no obligation to pay Basic Rent with
     respect to such Property until the Basic Term has commenced with respect to
     such Property.

              (b)   Basic Rent shall be due and payable in lawful money of the
     United States and shall be paid by wire transfer of immediately available
     funds on the due date therefor (or within the applicable grace period) to
     such account or accounts at such bank or banks as Lessor shall from time to
     time direct.

              (c)   Lessee's inability or failure to take possession of all or
     any portion of any Property when delivered by Lessor, whether or not
     attributable to any act or omission of Lessor, the Construction Agent or
     Lessee, or for any other reason whatsoever, shall not delay or otherwise
     affect Lessee's obligation to pay Rent for such Property in accordance with
     the terms of this Lease.

     3.2      Payment of Basic Rent.
              ---------------------

     Basic Rent shall be paid absolutely net to Lessor or its designee, so that
this Lease shall yield to Lessor the full amount thereof, without setoff,
deduction or reduction.

     3.3      Supplemental Rent.
              -----------------

     Lessee shall pay to Lessor or its designee or to the Person entitled
thereto any and all Supplemental Rent promptly as the same shall become due and
payable, and if Lessee fails to pay any Supplemental Rent, Lessor shall have all
rights, powers and remedies provided for herein or by law or equity or otherwise
in the case of nonpayment of Basic Rent.  Lessee shall pay to Lessor, as
Supplemental Rent, among other things, on demand, to the extent permitted by
applicable Legal Requirements, (a) any and all unpaid fees, charges, payments
and other obligations (other than the obligations of Lessor to pay the principal
amount of the Loans and the Holder Amount) due and owing by Lessor under the
Credit Agreement, under the Trust Agreement and/or under any other Operative
Agreement (including specifically without limitation any amounts owing to the
Lenders under Section 2.11, Section 2.12, Section 2.13 and Section 9.5 of the
Credit Agreement and any amounts owing to the Holders under Section 3.9 or
Section 3.10 of the Trust Agreement) and (b) interest at the applicable Overdue
Rate on any installment of Basic Rent not paid when due (subject to the
applicable grace period) for the period for which the same shall be overdue and
on any payment of Supplemental Rent not paid when due or demanded by Lessor for
the period from the due date or the date of any such demand, as the case may be,
until the same shall be paid.  The expiration or other termination of Lessee's
obligations to pay Basic Rent hereunder shall not limit or modify the
obligations of

                                      -3-
<PAGE>

Lessee with respect to Supplemental Rent. Unless expressly provided otherwise in
this Lease, in the event of any failure on the part of Lessee to pay and
discharge any Supplemental Rent as and when due, Lessee shall also promptly pay
and discharge any fine, penalty, interest or cost which may be assessed or added
for nonpayment or late payment of such Supplemental Rent, all of which shall
also constitute Supplemental Rent. Notwithstanding the foregoing, with respect
to each individual Property, Lessee shall have no obligation to pay Supplemental
Rent with respect to such Property until the Basic Term has commenced with
respect to such Property; provided, nothing in this Section 3.3 shall excuse the
                          --------
Construction Agent from paying amounts (including amounts that would otherwise
constitute Supplemental Rent obligations) to the extent such amounts are payable
under the Agency Agreement prior to the Basic Term Commencement Date respecting
such Property.

     3.4      Performance on a Non-Business Day.
              ---------------------------------

     If any Basic Rent is required hereunder on a day that is not a Business
Day, then such Basic Rent shall be due on the corresponding Scheduled Interest
Payment Date.  If any Supplemental Rent is required hereunder on a day that is
not a Business Day, then such Supplemental Rent shall be due on the next
succeeding Business Day.

     3.5      Rent Payment Provisions.
              -----------------------

     Lessee shall make payment of all Basic Rent and Supplemental Rent when due
(subject to the applicable grace period) regardless of whether any of the
Operative Agreements pursuant to which same is calculated and is owing shall
have been rejected, avoided or disavowed in any bankruptcy or insolvency
proceeding involving any of the parties to any of the Operative Agreements.
Such provisions of such Operative Agreements and their related definitions are
incorporated herein by reference and shall survive any termination, amendment or
rejection of any such Operative Agreements.

                                   ARTICLE IV

     4.1      Taxes; Utility Charges.
              ----------------------

     Lessee shall pay or cause to be paid all Impositions with respect to the
Properties and/or the use, occupancy or operation thereof and all charges for
electricity, power, gas, oil, water, telephone, sanitary sewer service and all
other rents, utilities and operating expenses of any kind or type used in or on
a Property and related real property during the Term.  Upon Lessor's request,
Lessee shall provide from time to time Lessor with evidence of all such payments
referenced in the foregoing sentence.  Lessee shall be entitled to receive any
credit or refund with respect to any Imposition or utility charge paid by
Lessee.  Unless an Event of Default shall have occurred and be continuing, the
amount of any credit or refund received by Lessor on account of any Imposition
or utility charges paid by Lessee, net of the costs and expenses incurred by
Lessor in obtaining such credit or refund, shall be promptly paid over to
Lessee.  All charges for Impositions or utilities imposed with respect to a
Property for a period during which this Lease

                                      -4-
<PAGE>

expires or terminates shall be adjusted and prorated on a daily basis between
Lessor and Lessee, and each party shall pay or reimburse the other for such
party's pro rata share thereof.

                                   ARTICLE V

     5.1      Quiet Enjoyment.
              ---------------

     Subject to the rights of Lessor contained in Sections 17.2, 17.3 and 20.3
and the other terms of this Lease and so long as no Lease Event of Default shall
have occurred and be continuing, Lessee shall peaceably and quietly have, hold
and enjoy each Property for the applicable Term, free of any claim or other
action by Lessor or anyone rightfully claiming by, through or under Lessor
(other than Lessee) with respect to any matters arising from and after the
applicable Basic Term Commencement Date.

                                  ARTICLE VI

     6.1      Net Lease.
              ---------

     This Lease shall constitute a net lease, and the obligations of Lessee
hereunder are absolute and unconditional.  Any present or future law to the
contrary notwithstanding, this Lease shall not terminate, nor shall Lessee be
entitled to any abatement, suspension, deferment, reduction, setoff,
counterclaim, or defense with respect to the Rent, nor shall the obligations of
Lessee hereunder be affected (except as expressly herein permitted and by
performance of the obligations in connection therewith) by reason of:  (i) any
damage to or destruction of any Property or any part thereof; (ii) any taking of
any Property or any part thereof or interest therein by Condemnation or
otherwise; (iii) any prohibition, limitation, restriction or prevention of
Lessee's use, occupancy or enjoyment of any Property or any part thereof, or any
interference with such use, occupancy or enjoyment by any Person or for any
other reason; (iv) any title defect, Lien or any matter affecting title to any
Property; (v) any eviction by paramount title or otherwise; (vi) any default by
Lessor hereunder; (vii) any action for bankruptcy, insolvency, reorganization,
liquidation, dissolution or other proceeding relating to or affecting Lessor,
Lessee, any Holder or any Governmental Authority; (viii) the impossibility or
illegality of performance by Lessor, Lessee or both; (ix) any action of any
Governmental Authority; (x) Lessee's acquisition of ownership of all or part of
any Property; (xi) breach of any warranty or representation with respect to any
Property or any Operative Agreement; (xii) any defect in the condition, quality
or fitness for use of any Property or any part thereof; or (xiii) any other
cause or circumstance whether similar or dissimilar to the foregoing and whether
or not Lessee shall have notice or knowledge of any of the foregoing.  The
parties intend that the obligations of Lessee hereunder shall be covenants,
agreements and obligations that are separate and independent from any
obligations of Lessor hereunder and shall continue unaffected unless such
covenants, agreements and obligations shall have been modified or terminated in
accordance with an express provision of this Lease.  Lessor and Lessee
acknowledge and agree that the provisions of this Section 6.1 have been
specifically reviewed and subject to negotiation.

                                      -5-
<PAGE>

     6.2      No Termination or Abatement.
              ---------------------------

     Lessee shall remain obligated under this Lease in accordance with its terms
and shall not take any action to terminate, rescind or avoid this Lease,
notwithstanding any action for bankruptcy, insolvency, reorganization,
liquidation, dissolution, or other proceeding affecting Lessor or any
Governmental Authority, or any action with respect to this Lease or any
Operative Agreement which may be taken by any trustee, receiver or liquidator of
Lessor or any Governmental Authority or by any court with respect to Lessor,
Lessee, any Holder, or any Governmental Authority.  Lessee hereby waives all
right (i) to terminate or surrender this Lease (except as permitted under the
terms of the Operative Agreements) or (ii) to avail itself of any abatement,
suspension, deferment, reduction, setoff, counterclaim or defense with respect
to any Rent.  Lessee shall remain obligated under this Lease in accordance with
its terms and Lessee hereby waives any and all rights now or hereafter conferred
by statute or otherwise to modify or to avoid strict compliance with its
obligations under this Lease.  Notwithstanding any such statute or otherwise,
Lessee shall be bound by all of the terms and conditions contained in this
Lease.

                                  ARTICLE VII

     7.1      Ownership of the Property.
              -------------------------

              (a) Lessor and Lessee intend that (i) for financial accounting
     purposes with respect to Lessee (A) this Lease will be treated as an
     "operating lease" pursuant to Statement of Financial Accounting Standards
     No. 13, as amended, (B) Lessor will be treated as the owner and lessor of
     each Property and (C) Lessee will be treated as the lessee of each
     Property, but (ii) for federal and all state and local income tax purposes,
     bankruptcy purposes, commercial law and real estate purposes and all other
     purposes (A) this Lease will be treated as a financing arrangement and (B)
     Lessee will be treated as the owner of the Properties and will be entitled
     to all tax benefits ordinarily available to owners of property similar to
     the Properties for such tax purposes.

              (b) For all purposes other than as set forth in Section 7.1(a),
     Lessor and Lessee intend this Lease to constitute a finance lease and not a
     true lease. Lessor and Lessee further intend and agree that, for the
     purpose of securing Lessee's obligations hereunder, (i) this Lease shall be
     deemed to be a security agreement and financing statement within the
     meaning of Article 9 of the Uniform Commercial Code respecting each of the
     Properties to the extent such is personal property and an irrevocable grant
     and conveyance of a lien and mortgage on each of the Properties to the
     extent such is real property; (ii) the acquisition of title in each
     Property referenced in Article II shall be deemed to be a grant by Lessee
     to Lessor of, and Lessee hereby grants to Lessor, a lien on and security
     interest, mortgage lien and deed of trust in all of Lessee's right, title
     and interest in and to the Property and all proceeds (including without
     limitation insurance proceeds) of the conversion, voluntary or involuntary,
     of the foregoing into cash,

                                      -6-
<PAGE>

     investments, securities or other property, whether in the form of cash,
     investments, securities or other property, and an assignment of all rents,
     profits and income produced by the Property; and (iii) notifications to
     Persons holding such property, and acknowledgments, receipts or
     confirmations from financial intermediaries, bankers or agents (as
     applicable) of Lessee shall be deemed to have been given for the purpose of
     perfecting such security interest, mortgage lien and deed of trust under
     applicable law. Lessor and Lessee shall promptly take such actions as may
     be necessary or advisable in either party's opinion (including without
     limitation the filing of Uniform Commercial Code Financing Statements,
     Uniform Commercial Code Fixture Filings and memoranda of this Lease and the
     various Lease Supplements) to ensure that the security interest, lien,
     mortgage lien and deed of trust in each Property will be deemed to be a
     perfected lien and security interest of first priority under applicable law
     and will be maintained as such throughout the Term.

                                 ARTICLE VIII

     8.1      Condition of the Property.
              -------------------------

     LESSEE ACKNOWLEDGES AND AGREES THAT IT IS LEASING EACH PROPERTY "AS IS"
WITHOUT REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR IMPLIED) BY LESSOR AND
IN EACH CASE SUBJECT TO (A) THE EXISTING STATE OF TITLE, (B) THE RIGHTS OF ANY
PARTIES IN POSSESSION THEREOF (IF ANY), (C) ANY STATE OF FACTS WHICH AN ACCURATE
SURVEY OR PHYSICAL INSPECTION MIGHT SHOW, (D) ALL APPLICABLE LEGAL REQUIREMENTS
AND (E) VIOLATIONS OF LEGAL REQUIREMENTS WHICH MAY EXIST ON THE DATE HEREOF
AND/OR THE DATE OF THE APPLICABLE LEASE SUPPLEMENT.  NEITHER LESSOR NOR THE
AGENT NOR ANY LENDER NOR ANY HOLDER HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY
REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR IMPLIED) OR SHALL BE DEEMED TO
HAVE ANY LIABILITY WHATSOEVER AS TO THE TITLE, VALUE, HABITABILITY, USE,
CONDITION, DESIGN, OPERATION, MERCHANTABILITY OR FITNESS FOR USE OF ANY PROPERTY
(OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT
WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY PROPERTY (OR ANY PART
THEREOF), AND NEITHER LESSOR NOR THE AGENT NOR ANY LENDER NOR ANY HOLDER SHALL
BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREON OR THE FAILURE OF ANY
PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY LEGAL REQUIREMENT.  THE LESSEE
HAS OR WILL HAVE BEEN AFFORDED FULL OPPORTUNITY TO INSPECT EACH PROPERTY AND THE
IMPROVEMENTS THEREON (IF ANY), IS OR WILL BE (INSOFAR AS THE LESSOR, THE AGENT,
EACH LENDER AND EACH HOLDER ARE CONCERNED) SATISFIED WITH THE RESULTS OF ITS
INSPECTIONS AND IS ENTERING INTO THIS LEASE SOLELY ON THE BASIS OF THE RESULTS
OF ITS OWN INSPECTIONS, AND ALL RISKS INCIDENT TO THE MATTERS DESCRIBED IN THE
PRECEDING SENTENCE, AS BETWEEN THE LESSOR, THE

                                      -7-
<PAGE>

AGENT, THE LENDERS AND THE HOLDERS, ON THE ONE HAND, AND THE LESSEE, ON THE
OTHER HAND, ARE TO BE BORNE BY LESSEE.

     8.2      Possession and Use of the Property.
              ----------------------------------

              (a) At all times during the Term with respect to each Property,
     such Property shall be used by Lessee in the ordinary course of its
     business. Lessee shall pay, or cause to be paid, all charges and costs
     required in connection with the use of the Properties as contemplated by
     this Lease. Lessee shall not commit or permit any waste of the Properties
     or any part thereof.

              (b) The address stated in Section 29.1 of this Lease is the chief
     place of business and chief executive office of Lessee (as such terms are
     used in Section 9-103(3) of the Uniform Commercial Code of any applicable
     jurisdiction), and Lessee will provide Lessor with prior written notice of
     any change of location of its chief place of business or chief executive
     office. Regarding a particular Property, each Lease Supplement correctly
     identifies the initial location of the related Equipment and Improvements
     and contains an accurate legal description for the related parcel of Land.
     Lessee has no other places of business where the Equipment or Improvements
     will be located other than those identified on the applicable Lease
     Supplement.

              (c) Lessee will not attach or incorporate any item of Equipment to
     or in any other item of equipment or personal property or to or in any real
     property (except the Land identified in the Lease Supplement in which such
     Equipment is also described) in a manner that could give rise to the
     assertion of any Lien on such item of Equipment by reason of such
     attachment or the assertion of a claim that such item of Equipment has
     become a fixture and is subject to a Lien in favor of a third party that is
     prior to the Liens thereon created by the Operative Agreements.

              (d) On the Basic Term Commencement Date for each Property, Lessor
     and Lessee shall execute a Lease Supplement in regard to such Property
     which shall contain an Equipment Schedule that has a complete description
     of each item of Equipment, an Improvement Schedule that has a complete
     description of each Improvement and a legal description of the Land, to be
     leased hereunder as of such date. Simultaneously with the execution and
     delivery of each Lease Supplement, such Equipment, Improvements and Land
     shall be deemed to have been accepted by Lessee for all purposes of this
     Lease and to be subject to this Lease.

              (e) At all times during the Term with respect to each Property,
     Lessee will comply with all obligations under and (to the extent no Event
     of Default exists and provided that such exercise will not impair the value
     of such Property) shall be permitted to exercise all rights and remedies
     under, all operation and easement agreements and related or similar
     agreements applicable to such Property.

                                      -8-
<PAGE>

              (f) To the extent any punch list items with respect to any
     particular Property are not complete as of the Basic Term Commencement Date
     for such Property, Lessee shall cause such punch list items to be completed
     promptly after the Basic Term Commencement Date respecting such Property.

                                  ARTICLE IX

     9.1      Compliance With Legal Requirements and Insurance Requirements.
              -------------------------------------------------------------

     Subject to the terms of Article XIII relating to permitted contests,
Lessee, at its sole cost and expense, shall (i) comply with all material Legal
Requirements (including without limitation all Environmental Laws), and all
Insurance Requirements relating to the Properties, including the use,
development, construction, operation, maintenance, repair, refurbishment and
restoration thereof, whether or not compliance therewith shall require
structural or extraordinary changes in the Improvements or interfere with the
use and enjoyment of the Properties, and (ii) procure, maintain and comply with
all material licenses, permits, orders, approvals, consents and other
authorizations required for the construction, use, maintenance and operation of
the Properties and for the use, development, construction, operation,
maintenance, repair and restoration of the Improvements.  The Lessor agrees to
take such actions as may be reasonably requested by the Lessee in connection
with the compliance by the Lessee of its obligations under this Section 9.1.

                                   ARTICLE X

     10.1      Maintenance and Repair; Return.
               ------------------------------

               (a) Lessee, at its sole cost and expense, shall maintain each
     Property in good condition, repair and working order (ordinary wear and
     tear excepted) and make all necessary repairs thereto, of every kind and
     nature whatsoever, whether interior or exterior, ordinary or extraordinary,
     structural or nonstructural or foreseen or unforeseen, in each case as
     required by all Legal Requirements, Insurance Requirements, and
     manufacturer's specifications and standards and on a basis consistent with
     the operation and maintenance of properties or equipment comparable in type
     and function to the applicable Property and in compliance with standard
     industry practice subject, however, to the provisions of Article XV with
     respect to Condemnation and Casualty.

               (b) Lessee shall not use or locate any component of any Property
     outside of any Approved State. Lessee shall not move or relocate any
     component of any Property beyond the boundaries of the Land (comprising
     part of the Property) described in the applicable Lease Supplement.

               (c) If any component of any Property becomes worn out, lost,
     destroyed, damaged beyond repair or otherwise permanently rendered unfit
     for use and the failure to replace such component would have a Material
     Adverse Effect on such Property, Lessee, at its own expense, will within a
     reasonable time replace such component with a

                                      -9-
<PAGE>

     replacement component which is free and clear of all Liens (other than
     Permitted Liens) and has a value, utility and useful life at least equal to
     the component replaced. All components which are added to the Property
     shall immediately become the property of, and title thereto shall vest in,
     Lessor, and shall be deemed incorporated in the Property and subject to the
     terms of this Lease as if originally leased hereunder.

               (d) Upon reasonable advance notice, Lessor and its agents shall
     have the right to inspect each Property and all maintenance records with
     respect thereto at any reasonable time during normal business hours but
     shall not, in the absence of an Event of Default, materially disrupt the
     business of Lessee.

               (e) Lessee shall cause to be delivered to Lessor (at Lessee's
     sole expense) any additional Appraisals (or reappraisals) as Lessor may
     request if any one of Lessor, the Agent, any Lender or any Holder is
     required pursuant to any applicable Legal Requirement to obtain such an
     Appraisal (or reappraisal).

               (f) Lessor shall under no circumstances be required to build any
     improvements on any Property, make any repairs, replacements, alterations
     or renewals of any nature or description to any Property, make any
     expenditure whatsoever in connection with this Lease or maintain any
     Property in any way.  Lessor shall not be required to maintain, repair or
     rebuild all or any part of any Property, and Lessee waives the right to (i)
     require Lessor to maintain, repair, or rebuild all or any part of any
     Property, or (ii) make repairs at the expense of Lessor pursuant to any
     Legal Requirement, Insurance Requirement, contract, agreement, covenants,
     condition or restriction at any time in effect.

               (g) Lessee shall, upon the expiration or earlier termination of
     this Lease with respect to a Property, if Lessee shall not have exercised
     its Purchase Option with respect to such Property, surrender such Property
     to Lessor, or the third party purchaser, as the case may be, subject to
     Lessee's obligations under this Lease (including without limitation the
     obligations of the Lessee at the time of such surrender under Sections 9.1,
     10.1(a)-(f), 10.2, 11.1, 12.1, 22.1 and 23.1).

     10.2      Environmental Inspection.
               -------------------------

     If Lessee has not given notice of exercise of its Purchase Option on the
Expiration Date pursuant to Section 20.1, then not more than 120 days nor less
than 60 days prior to the Expiration Date, Lessee shall, at its sole cost and
expense, provide to Lessor a report by a reputable environmental consultant
selected by Lessee, which report shall be in form and substance reasonably
satisfactory to Lessor.

                                      -10-
<PAGE>

                                  ARTICLE XI

     11.1      Modifications.
               -------------

               (a) Lessee at its sole cost and expense, at any time and from
     time to time without the consent of Lessor may make alterations,
     renovations, improvements and additions to the Property or any part thereof
     and substitutions and replacements therefor (collectively,
     "Modifications"), and Lessee shall make any and all Modifications required
      -------------
     to be made pursuant to any Legal Requirement; provided, that: (i) except
                                                   --------
     for any Modification required to be made pursuant to a Legal Requirement,
     no Modification shall materially impair the value, utility or useful life
     of the Property from that which existed immediately prior to such
     Modification; (ii) the Modification shall be done expeditiously and in a
     good and workmanlike manner; (iii) Lessee shall comply with all material
     Legal Requirements (including all Environmental Laws) and Insurance
     Requirements applicable to the Modification, including the obtaining of all
     permits and certificates of occupancy, and the structural integrity of the
     Property shall not be adversely affected; (iv) to the extent required by
     Section 14.2(a), Lessee shall maintain builders' risk insurance at all
     times when a Modification is in progress; (v) subject to the terms of
     Article XIII relating to permitted contests, Lessee shall pay all costs and
     expenses and discharge any Liens arising with respect to the Modification;
     (vi) such Modification shall comply with the requirements of this Lease
     (including without limitation Sections 8.2 and 10.1); and (vii) no
     Improvements shall be demolished unless Lessee shall finance the proposed
     Modification outside of this lease facility. All Modifications shall
     immediately and without further action upon their incorporation into the
     applicable Property (1) become property of the Lessor, (2) be subject to
     this Lease and (3) be titled in the name of Lessor. Lessee shall not remove
     or attempt to remove any Modification from any Property. Each Ground Lease
     for a Property shall expressly provide for the provisions of the foregoing
     sentence. Lessee, at its own cost and expense, will pay for the repairs of
     any damage to the Property caused by the removal or attempted removal of
     any Modification.

               (b) The construction process provided for in the Agency Agreement
     is acknowledged by Lessor and the Agent to be consistent with and in
     compliance with the terms and provisions of this Article XI.

                                  ARTICLE XII

     12.1      Warranty of Title.
               -----------------

               (a) Lessee agrees that, except as otherwise provided herein and
     subject to the terms of Article XIII relating to permitted contests, Lessee
     shall not directly or indirectly create or allow to remain, and shall
     promptly discharge at its sole cost and expense, any Lien, defect,
     attachment, levy, title retention agreement or claim upon any Property or
     any Modifications or any Lien, attachment, levy or claim with respect to
     the Rent or with respect to any amounts held by the Agent pursuant to the
     Credit Agreement, other than

                                      -11-
<PAGE>

     Permitted Liens and Lessor Liens. Lessee shall promptly notify Lessor in
     the event it receives actual knowledge that a Lien other than a Permitted
     Lien or Lessor Lien has occurred with respect to a Property, and Lessee
     represents and warrants to, and covenants with, Lessor that the Liens in
     favor of the Lessor created by the Operative Agreements are first priority
     perfected Liens subject only to Permitted Liens.

               (b) Nothing contained in this Lease shall be construed as
     constituting the consent or request of Lessor, expressed or implied, to or
     for the performance by any contractor, mechanic, laborer, materialman,
     supplier or vendor of any labor or services or for the furnishing of any
     materials for any construction, alteration, addition, repair or demolition
     of or to any Property or any part thereof. NOTICE IS HEREBY GIVEN THAT
     LESSOR IS NOT AND SHALL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS
     FURNISHED OR TO BE FURNISHED TO LESSEE, OR TO ANYONE HOLDING A PROPERTY OR
     ANY PART THEREOF THROUGH OR UNDER LESSEE, AND THAT NO MECHANIC'S OR OTHER
     LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT
     THE INTEREST OF LESSOR IN AND TO ANY PROPERTY.

                                 ARTICLE XIII

     13.1      Permitted Contests Other Than in Respect of Indemnities.
               -------------------------------------------------------

     Except to the extent otherwise provided for in Section 13 of the
Participation Agreement, Lessee, on its own or on Lessor's behalf but at
Lessee's sole cost and expense, may contest, by appropriate administrative or
judicial proceedings conducted in good faith and with due diligence, the amount,
validity or application, in whole or in part, of any Legal Requirement, or
utility charges payable pursuant to Section 4.1 or any Lien, attachment, levy,
encumbrance or encroachment, and Lessor agrees not to pay, settle or otherwise
compromise any such item, provided that (a) the commencement and continuation of
such proceedings shall suspend the collection of any such contested amount from,
and suspend the enforcement thereof against, the applicable Properties, Lessor,
each Holder, the Agent and each Lender; (b) there shall not be imposed a Lien
(other than Permitted Liens) on any Property and no part of any Property nor any
Rent would be in any danger of being sold, forfeited, lost or deferred; (c) at
no time during the permitted contest shall there be a risk of the imposition of
criminal liability or material civil liability on Lessor, any Holder, the Agent
or any Lender for failure to comply therewith; and (d) in the event that, at any
time, there shall be a material risk of extending the application of such item
beyond the end of the Term, then Lessee shall deliver to Lessor an Officer's
Certificate certifying as to the matters set forth in clauses (a), (b) and (c)
of this Section 13.1.  Lessor, at Lessee's sole cost and expense, shall execute
and deliver to Lessee such authorizations and other documents as may reasonably
be required in connection with any such contest and, if reasonably requested by
Lessee, shall join as a party therein at Lessee's sole cost and expense.

                                      -12-
<PAGE>

                                  ARTICLE XIV

     14.1      Public Liability and Workers' Compensation Insurance.
               ----------------------------------------------------

     During the Term for each Property, Lessee shall procure and carry, at
Lessee's sole cost and expense, commercial general liability and umbrella
liability insurance for claims for injuries or death sustained by persons or
damage to property while on the Properties or the premises where the Equipment
is located and such other public liability coverages as are then customarily
carried by similarly situated companies conducting business similar to that
conducted by Lessee.  Such insurance shall be on terms and in amounts that are
no less favorable than insurance maintained by Lessee with respect to similar
properties and equipment that it owns and are then carried by similarly situated
companies conducting business similar to that conducted by Lessee, and in no
event shall have a minimum combined single limit per occurrence coverage (i) for
commercial general liability of less than $1,000,000 and (ii) for umbrella
liability of less than $50,000,000.  The policies shall name the Lessee as the
insured and shall be endorsed to name Lessor, the Holders, the Agent and the
Lenders as additional insureds.  The policies shall also specifically provide
that such policies shall be considered primary insurance which shall apply to
any loss or claim before any contribution by any insurance which Lessor, any
Holder, the Agent or any Lender may have in force.  Lessee shall, in the
operation of the Properties, comply with applicable workers' compensation laws
and protect Lessor, each Holder, the Agent and each Lender against any liability
under such laws.

     14.2      Permanent Hazard and Other Insurance.
               ------------------------------------

               (a) During the Term for each Property, Lessee shall keep each of
     the Properties insured against loss or damage by fire and other risks and
     shall maintain builders' risk insurance during construction of any
     Improvements or Modifications in amounts no less than the Termination Value
     from time to time and on terms that (a) are no less favorable than
     insurance covering other similar properties owned by Lessee and (b) are
     then carried by similarly situated companies conducting business similar to
     that conducted by Lessee. The policies shall name the Lessee as the insured
     and shall be endorsed to name Lessor as an additional insured and loss
     payee and the Agent, on behalf of the Holders and the Lenders to the extent
     of their respective interests, as mortgagee and an additional named insured
     and loss payee; provided, so long as no Lease Event of Default exists, any
                     --------
     loss payable under the insurance policies required by this Section for
     losses up to $1,000,000 will be paid to Lessee.

               (b) If, during the Term with respect to a Property the area in
     which such Property is located is designated a "flood-prone" area pursuant
     to the Flood Disaster Protection Act of 1973, or any amendments or
     supplements thereto or is in a zone designated A or V, then Lessee shall
     comply with the National Flood Insurance Program as set forth in the Flood
     Disaster Protection Act of 1973. In addition, Lessee will fully comply with
     the requirements of the National Flood Insurance Act of 1968 and the Flood
     Disaster Protection Act of 1973, as each may be amended from time to time,
     and with any

                                      -13-
<PAGE>

     other Legal Requirement, concerning flood insurance to the extent that it
     applies to any such Property.

     14.3      Coverage.
               --------

               (a) As of the date of this Lease and annually thereafter during
     the Term, Lessee shall furnish Lessor and the Agent with certificates
     prepared by the insurers or insurance broker of Lessee showing the
     insurance required under Sections 14.1 and 14.2 to be in effect, naming
     (except with respect to workers' compensation insurance) Lessor, the
     Holders, the Agent and the Lender as additional insureds and loss payees
     and evidencing the other requirements of this Article XIV. All such
     insurance shall be at the cost and expense of Lessee (or the Lessee's
     Contractors with respect to insurance required to be maintained by such
     Contractors) and provided by nationally recognized, financially sound
     insurance companies having an A-X11 or better rating by Best's Key Rating
     Guide. Such certificates shall include a provision for thirty (30) days'
     advance written notice by the insurer to Lessor and the Agent in the event
     of cancellation or material alteration of such insurance. If a Lease Event
     of Default has occurred and is continuing and Lessor so requests, Lessee
     shall deliver to Lessor copies of all insurance policies required by
     Sections 14.1 and 14.2.

               (b) Lessee agrees that the insurance policy or policies required
     by Sections 14.1, 14.2(a) and 14.2(b) shall include an appropriate clause
     pursuant to which any such policy shall provide that it will not be
     invalidated should Lessee or any Contractor, as the case may be, waive, at
     any time, any or all rights of recovery against any party for losses
     covered by such policy or due to any breach of warranty, fraud, action,
     inaction or misrepresentation by Lessee or any Person acting on behalf of
     Lessee. Lessee hereby waives any and all such rights against the Lessor,
     the Holders, the Agent and the Lenders to the extent of payments made to
     any such Person under any such policy.

               (c) Neither Lessor nor Lessee shall carry separate insurance
     concurrent in kind or form or contributing in the event of loss with any
     insurance required under this Article XIV, except that Lessor may carry
     separate liability insurance at Lessor's sole cost so long as (i) Lessee's
     insurance is designated as primary and in no event excess or contributory
     to any insurance Lessor may have in force which would apply to a loss
     covered under Lessee's policy and (ii) each such insurance policy will not
     cause Lessee's insurance required under this Article XIV to be subject to a
     coinsurance exception of any kind.

               (d) Lessee shall pay as they become due all premiums for the
     insurance required by Section 14.1 and Section 14.2, shall renew or replace
     each policy prior to the expiration date thereof or otherwise maintain the
     coverage required by such Sections without any lapse in coverage.

                                      -14-
<PAGE>

                                  ARTICLE XV

     15.1  Casualty and Condemnation.
           -------------------------

           (a)   Subject to the provisions of this Article XV and Article XVI
     (in the event Lessee delivers, or is obligated to deliver or is deemed to
     have delivered, a Termination Notice), and prior to the occurrence and
     continuation of a Lease Event of Default, Lessee shall be entitled to
     receive (and Lessor hereby irrevocably assigns to Lessee all of Lessor's
     right, title and interest in) any award, compensation or insurance proceeds
     under Sections 14.2(a) or (b) hereof to which Lessee or Lessor may become
     entitled by reason of their respective interests in a Property (i) if all
     or a portion of such Property is damaged or destroyed in whole or in part
     by a Casualty or (ii) if the use, access, occupancy, easement rights or
     title to such Property or any part thereof is the subject of a
     Condemnation; provided, however, if a Lease Event of Default shall have
                   --------  -------
     occurred and be continuing or if such award, compensation or insurance
     proceeds shall exceed $1,000,000, then such award, compensation or
     insurance proceeds shall be paid directly to Lessor or, if received by
     Lessee, shall be held in trust for Lessor, and shall be paid over by Lessee
     to Lessor and held in accordance with the terms of this paragraph (a).  All
     amounts held by Lessor hereunder on account of any award, compensation or
     insurance proceeds either paid directly to Lessor or turned over to Lessor
     shall be held as security for the performance of Lessee's obligations
     hereunder and when all such obligations of Lessee with respect to such
     matters have been satisfied, all amounts so held by Lessor shall be paid
     over to Lessee.

           (b)   Lessee may appear in any proceeding or action to negotiate,
     prosecute, adjust or appeal any claim for any award, compensation or
     insurance payment on account of any such Casualty or Condemnation and shall
     pay all expenses thereof. At Lessee's reasonable request, and at Lessee's
     sole cost and expense, Lessor and the Agent shall participate in any such
     proceeding, action, negotiation, prosecution or adjustment. Lessor and
     Lessee agree that this Lease shall control the rights of Lessor and Lessee
     in and to any such award, compensation or insurance payment.

           (c)   If Lessee shall receive notice of a Casualty or a possible
     Condemnation of a Property or any interest therein where damage to the
     affected Property is estimated to equal or exceed twenty-five percent (25%)
     of the Property Cost of such Property, Lessee shall give notice thereof to
     the Lessor and to the Agent promptly after the receipt of such notice. In
     such event or in the event that a condemnation award or other compensation
     or insurance proceeds in excess of $15,000,000 are received by Lessee or
     Lessor in respect of any Casualty or Condemnation, then Lessee shall be
     deemed to have delivered a Termination Notice and the provisions of
     Sections 16.1 and 16.2 shall apply.

           (d)   In the event of a Casualty or a Condemnation (regardless of
     whether notice thereof must be given pursuant to paragraph (c)), this Lease
     shall terminate with respect to the applicable Property in accordance with
     Section 16.1 if Lessee, within thirty (30) days after such occurrence,
     delivers to Lessor and the Agent a notice to such effect.

                                      -15-
<PAGE>

           (e)   If pursuant to this Section 15.1 this Lease shall continue in
     full force and effect following a Casualty or Condemnation with respect to
     the affected Property, Lessee shall, at its sole cost and expense and
     using, if available, the proceeds of any award, compensation or insurance
     with respect to such Casualty or Condemnation (including, without
     limitation, any such award, compensation or insurance which has been
     received by the Agent and which should be turned over to Lessee pursuant to
     the terms of the Operative Agreements, and if not available or sufficient,
     using its own funds), promptly and diligently repair any damage to the
     applicable Property caused by such Casualty or Condemnation in conformity
     with the requirements of Sections 10.1 and 11.1, using the as-built Plans
     and Specifications or manufacturer's specifications for the applicable
     Improvements or Equipment (as modified to give effect to any subsequent
     Modifications, any Condemnation affecting the Property and all applicable
     Legal Requirements), so as to restore the applicable Property to
     substantially the same condition, operation, function and value as existed
     immediately prior to such Casualty or Condemnation. In such event, title to
     the applicable Property shall remain with Lessor.

           (f)   In no event shall a Casualty or Condemnation with respect to
     which this Lease remains in full force and effect under this Section 15.1
     affect Lessee's obligations to pay Rent pursuant to Section 3.1.

           (g)   Notwithstanding anything to the contrary set forth in Section
     15.1(a) or Section 15.1(e), if during the Term with respect to a Property a
     Casualty occurs with respect to such Property or Lessee receives notice of
     a Condemnation with respect to such Property, and following such Casualty
     or Condemnation, the applicable Property cannot reasonably be restored,
     repaired or replaced on or before the earlier of the 180th day prior to the
     Expiration Date or the date nine (9) months after the occurrence of such
     Casualty or Condemnation to the substantially same condition as existed
     immediately prior to such Casualty or Condemnation or on or before such day
     such Property is not in fact so restored, repaired or replaced, then Lessee
     shall be required to exercise its Purchase Option for such Property on the
     next Payment Date (notwithstanding the limits on such exercise contained in
     Section 20.2) and pay Lessor the Termination Value for such Property;
     provided, if any Default or Event of Default has occurred and is
     --------
     continuing, Lessee shall also promptly (and in any event within three (3)
     Business Days) pay Lessor any award, compensation or insurance proceeds
     received on account of any Casualty or Condemnation with respect to any
     Property; provided, further, that no Default or Event of Default has
     occurred and is continuing, any Excess Proceeds shall be paid to Lessee.
     If a Default has occurred and is continuing and any Loans, Holder Funding
     or other amounts are owing with respect thereto, then any Excess Proceeds
     (to the extent of any such Loans, Holder Funding or other amounts owing
     with respect thereto) shall be paid to the Lessor.

           (h)   The provisions of Section 15.1(a) through 15.1(g) shall not
     apply to any Property until after the Basic Term commences with respect to
     such Property.

                                      -16-
<PAGE>

     15.2  Environmental Matters.
           ---------------------

     Promptly upon Lessee's actual knowledge of the presence of Hazardous
Substances in any portion of any Property or Properties in concentrations and
conditions that constitute an Environmental Violation and which, in the
reasonable opinion of Lessee, the cost to undertake any legally required
response, clean up, remedial or other action will or might result in a cost to
Lessee of more than $15,000, Lessee shall notify Lessor in writing of such
condition. In the event of any Environmental Violation (regardless of whether
notice thereof must be given), Lessee shall, not later than thirty (30) days
after Lessee has actual knowledge of such Environmental Violation, either
deliver to Lessor a Termination Notice with respect to the applicable Property
or Properties pursuant to Section 16.1, if applicable, or, at Lessee's sole cost
and expense, promptly and diligently undertake and complete any response, clean
up, remedial or other action (including without limitation, the pursuit by
Lessee of appropriate action against any off-site or third party source for
contamination) necessary to remove, cleanup or remediate the Environmental
Violation in accordance with all Environmental Laws. If Lessee does not deliver
a Termination Notice with respect to such Property pursuant to Section 16.1,
Lessee shall, upon completion of remedial action by Lessee, cause to be prepared
by a reputable environmental consultant acceptable to Lessor a report describing
the Environmental Violation and the actions taken by Lessee (or its agents) in
response to such Environmental Violation, and a statement by the consultant that
the Environmental Violation has been remedied in full compliance with applicable
Environmental Law. Not less than sixty (60) days prior to any time that Lessee
elects to remarket any Property pursuant to Section 20.1 hereof or any other
provision of any Operative Agreement, Lessee shall deliver a Phase I
environmental survey respecting such Property satisfactory in form and substance
to the Lessor. Notwithstanding any other provision of any Operative Agreement,
if Lessee fails to comply with the foregoing obligation regarding the Phase I
environmental survey, Lessee shall be obligated to purchase such Property for
its Termination Value and shall not be permitted to exercise (and Lessor shall
have no obligation to honor any such exercise) any rights under any Operative
Agreement regarding a sale of such Property to a Person other than Lessee or any
Affiliate of Lessee.

     15.3  Notice of Environmental Matters.
           -------------------------------

     Promptly, but in any event within five (5) days from the date Lessee has
actual knowledge thereof, Lessee shall provide to Lessor written notice of any
material pending or threatened claim, action or proceeding involving any
Environmental Law or any Release on or in connection with any Property or
Properties.  All such notices shall describe in reasonable detail the nature of
the claim, action or proceeding and Lessee's proposed response thereto.  In
addition, Lessee shall provide to Lessor, within five (5) Business Days of
receipt, copies of all material written communications with any Governmental
Authority relating to any Environmental Law in connection with any Property.
Lessee shall also promptly provide such detailed reports of any such material
environmental claims as may reasonably be requested by Lessor.

                                      -17-
<PAGE>

                                  ARTICLE XVI

     16.1  Termination Upon Certain Events.
           -------------------------------

     If any of the following occur: (i) Lessee has delivered a notice pursuant
to Section 15.1(d), or is deemed to have delivered such notice pursuant to
Section 15.1(c), then following the applicable Casualty or Condemnation this
Lease shall terminate with respect to the affected Property, or (ii) Lessee has
delivered notice pursuant to the second sentence of Section 15.2 that, due to
the occurrence of an Environmental Violation, this Lease shall terminate with
respect to the affected Property, then Lessee shall be obligated to deliver,
within thirty (30) days of its receipt of notice of the applicable Condemnation
or the occurrence of the applicable Casualty or Environmental Violation, a
written notice to the Lessor in the form described in Section 16.2(a) (a
"Termination Notice") of the termination of this Lease with respect to the
 ------------------
applicable Property.

     16.2  Procedures.
           ----------

           (a)   A Termination Notice shall contain: (i) notice of termination
     of this Lease with respect to the affected Property on a Payment Date not
     more than sixty (60) days after Lessor's receipt of such Termination Notice
     (the "Termination Date"); and (ii) a binding and irrevocable agreement of
           ----------------
     Lessee to pay the Termination Value for the applicable Property and
     purchase such Property on such Termination Date.

           (b)   On each Termination Date, Lessee shall pay to Lessor the
     Termination Value for the applicable Property, and Lessor shall convey such
     Property or the remaining portion thereof, if any, to Lessee (or Lessee's
     designee), all in accordance with Section 20.2.

                                 ARTICLE XVII

     17.1  Lease Events of Default.
           -----------------------

     If any one or more of the following events (each a "Lease Event of
                                                         --------------
Default") shall occur:
-------

           (a)   Lessee shall fail to make payment of (i) any Basic Rent (except
     as set forth in clause (ii)) within five (5) days after the same has become
     due and payable or (ii) any Termination Value, on the date any such payment
     is due, or any payment of Basic Rent or Supplemental Rent due on the due
     date of any such payment of Termination Value, or any amount due on the
     Expiration Date;

           (b)   Lessee shall fail to make payment of any Supplemental Rent
     (other than Supplemental Rent referred to in Section 17(a)(ii)) within five
     (5) days after notice that such payment is due and payable or the Guarantor
     shall fail to make any payment of any amount under any Operative Agreement
     which has become due and payable (subject to any applicable grace period)
     after receipt of notice that such payment is due;

                                      -18-
<PAGE>

           (c)   Lessee shall fail to maintain insurance as required by Article
     XIV of this Lease;

           (d)   Lessee shall fail to observe or perform any material term,
     covenant or condition of Lessee under this Lease (including without
     limitation the Incorporated Covenants) or any other Operative Agreement to
     which Lessee is a party other than those set forth in Sections 17.1(a), (b)
     or (c) hereof, or the Guarantor shall fail to observe or perform any term,
     covenant, obligation or condition of the Guarantor under any Operative
     Agreement other than those set forth in Section 17.1(b) hereof, or any
     representation or warranty made by Lessee or the Guarantor set forth in
     this Lease (including without limitation the Incorporated Representations
     and Warranties) or in any other Operative Agreement or in any document
     entered into in connection herewith or therewith or in any document,
     certificate or financial or other statement delivered in connection
     herewith or therewith shall be false or inaccurate in any material way,
     and, to the extent such failure, misrepresentation or breach of warranty is
     capable of being cured, such failure, misrepresentation or breach of
     warranty shall remain uncured for a period of fifteen (15) days after the
     Lessee or the Guarantor has reason to know or notice thereof; provided,
     that if such failure misrepresentation or breach is not capable of being
     cured or if there is no cure period for breach of the Incorporated
     Representations and Warranties or Incorporated Covenants in the Capital One
     Credit Agreement or any New Facility the grace period referred to in this
     subclause (d) shall not apply;

           (e)   An Agency Agreement Event of Default shall have occurred and be
     continuing;

           (f)   [Intentionally Omitted]

           (g)   [Intentionally Omitted];

           (h)   The liquidation or dissolution of the Construction Agent or any
     Credit Party, or the suspension of the business of the Construction Agent
     or any Credit Party, or the filing by the Construction Agent or any Credit
     Party of a voluntary petition or an answer seeking reorganization,
     arrangement, readjustment of its debts or for any other relief under the
     United States Bankruptcy Code, as amended, or under any other insolvency
     act or law, state or federal, now or hereafter existing, or any other
     action of the Construction Agent or any Credit Party indicating its consent
     to, approval of or acquiescence in, any such petition or proceeding; the
     application by the Construction Agent or any Credit Party for, or the
     appointment by consent or acquiescence of the Construction Agent or any
     Credit Party of a receiver, a trustee or a custodian of the Construction
     Agent or any Credit Party for all or a substantial part of its property;
     the making by the Construction Agent or any Credit Party of any assignment
     for the benefit of creditors; the inability of the Construction Agent or
     any Credit Party or the admission by the Construction Agent or any Credit
     Party in writing of its inability to pay its debts as

                                      -19-
<PAGE>

     they mature; or the Construction Agent or any Credit Party taking any
     corporate action to authorize any of the foregoing;

           (i)   The filing of an involuntary petition against the Construction
     Agent or any Credit Party in bankruptcy or seeking reorganization,
     arrangement, readjustment of its debts or for any other relief under the
     United States Bankruptcy Code, as amended, or under any other insolvency
     act or law, state or federal, now or hereafter existing; or the involuntary
     appointment of a receiver, a trustee or a custodian of the Construction
     Agent or any Credit Party for all or a substantial part of its property; or
     the issuance of a warrant of attachment, execution or similar process
     against any substantial part of the property of the Construction Agent or
     any Credit Party, and the continuance of any of such events for ninety (90)
     days undismissed or undischarged;

           (j)   The adjudication of the Construction Agent or any Credit Party
     as bankrupt or insolvent;

           (k)   The entering of any order in any proceedings against the
     Construction Agent or any Credit Party decreeing the dissolution,
     divestiture or split-up of the Construction Agent or any Credit Party, and
     such order remains in effect for more than sixty (60) days;

           (l)   Any material report, certificate, financial statement or other
     instrument delivered to Lessor by or on behalf of the Construction Agent or
     any Credit Party pursuant to the terms of this Lease or any other Operative
     Agreement is false or misleading in any material respect when made or
     delivered;

           (m)   Any Capital One Credit Agreement Event of Default (other than a
     Capital One Credit Agreement Event of Default attributable solely to
     Capital One, F.S.B.) or an event of default under any New Facility (other
     than an event of default under such New Facility attributable solely to
     Capital One, F.S.B.) shall have occurred and be continuing and shall not
     have been waived by the Majority Lenders;

           (n)   The Construction Agent or any Credit Party or any Subsidiary of
     the Construction Agent or any Credit Party shall default (beyond applicable
     periods of grace and/or notice and cure) in the payment when due of any
     principal of or interest on any Indebtedness having an outstanding
     principal amount of at least $50,000,000; or any other event or condition
     shall occur which results in a default of any such Indebtedness or enables
     the holder of any such Indebtedness or any Person acting on such holder's
     behalf to accelerate the maturity thereof;

           (o)   Any Operative Agreement shall cease to be in full force and
     effect;

           (p)   Unless released in connection with the Operative Agreements,
     the Guarantor shall default in the due performance or observance of any
     term, covenant or agreement on its part to be performed or observed
     pursuant to the guaranty set forth in

                                      -20-
<PAGE>

     Section 8B of the Participation Agreement or if any material provision of
     the guaranty set forth in Section 8B of the Participation Agreement shall
     cease to be in full force and effect;

           then, in any such event Lessor may, in addition to the other rights
     and remedies provided for in this Article XVII and in Section 18.1,
     terminate this Lease by giving Lessee five (5) days notice of such
     termination, and this Lease shall terminate, and all rights of Lessee under
     this Lease shall cease. Lessee shall, to the fullest extent permitted by
     law, pay as Supplemental Rent all costs and expenses incurred by or on
     behalf of Lessor, including without limitation reasonable fees and expenses
     of counsel, as a result of any Lease Event of Default hereunder.

     17.2  Surrender of Possession.
           -----------------------

     If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessee shall, upon thirty (30) days written notice, surrender to Lessor
possession of the Properties.  Lessor may enter upon and repossess the
Properties by such means as are available at law or in equity, and may remove
Lessee and all other Persons and any and all personal property and Lessee's
equipment and personalty and severable Modifications from the Properties.
Lessor shall have no liability by reason of any such entry, repossession or
removal performed in accordance with applicable law.  Upon the written demand of
Lessor, Lessee shall return the Properties promptly to Lessor, in the manner and
condition required by, and otherwise in accordance with the provisions of,
Section 22.1(c) hereof.

     17.3  Reletting.
           ---------

     If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessor may, but shall be under no obligation to, relet any or all of the
Properties, for the account of Lessee or otherwise, for such term or terms
(which may be greater or less than the period which would otherwise have
constituted the balance of the Term) and on such conditions (which may include
concessions or free rent) and for such purposes as Lessor may determine, and
Lessor may collect, receive and retain the rents resulting from such reletting.
Lessor shall not be liable to Lessee for any failure to relet any Property or
for any failure to collect any rent due upon such reletting.

     17.4  Damages.
           -------

     Neither (a) the termination of this Lease as to all or any of the
Properties pursuant to Section 17.1; (b) the repossession of all or any of the
Properties; nor (c) the failure of Lessor to relet all or any of the Properties,
the reletting of all or any portion thereof, nor the failure of Lessor to
collect or receive any rentals due upon any such reletting, shall relieve Lessee
of its liabilities and obligations hereunder, all of which shall survive any
such termination, repossession or reletting. If any Lease Event of Default shall
have occurred and be continuing and notwithstanding any termination of this
Lease pursuant to Section 17.1, Lessee shall

                                      -21-
<PAGE>

forthwith pay to Lessor all Rent and other sums due and payable hereunder to and
including the date of such termination. Thereafter, on the days on which the
Basic Rent or Supplemental Rent, as applicable, are payable under this Lease or
would have been payable under this Lease if the same had not been terminated
pursuant to Section 17.1 and until the end of the Term hereof or what would have
been the Term in the absence of such termination, Lessee shall pay Lessor, as
current liquidated damages (it being agreed that it would be impossible
accurately to determine actual damages) an amount equal to the Basic Rent and
Supplemental Rent that are payable under this Lease or would have been payable
by Lessee hereunder if this Lease had not been terminated pursuant to Section
17.1, less the net proceeds, if any, which are actually received by Lessor with
respect to the period in question of any reletting of any Property or any
portion thereof; provided that Lessee's obligation to make payments of Basic
                 --------
Rent and Supplemental Rent under this Section 17.4 shall continue only so long
as Lessor shall not have received the amounts specified in Section 17.6. In
calculating the amount of such net proceeds from reletting, there shall be
deducted all of Lessor's, any Holder's, the Agent's and any Lender's reasonable
expenses in connection therewith, including repossession costs, brokerage or
sales commissions, fees and expenses for counsel and any necessary repair or
alteration costs and expenses incurred in preparation for such reletting. To the
extent Lessor receives any damages pursuant to this Section 17.4, such amounts
shall be regarded as amounts paid on account of Rent. Lessee specifically
acknowledges and agrees that its obligations under this Section 17.4 shall be
absolute and unconditional under any and all circumstances and shall be paid
and/or performed, as the case may be, without notice or demand and without any
abatement, reduction, diminution, setoff, defense, counterclaim or recoupment
whatsoever.

     17.5  Power of Sale.
           -------------

     Without limiting any other remedies set forth in this Lease, in the event
that a court of competent jurisdiction rules that this Lease constitutes a
mortgage, deed of trust or other secured financing as is the intent of the
parties, then the Lessor and the Lessee agree that the Lessee has granted,
pursuant to Section 7.1(b) hereof and each Lease Supplement, a Lien against the
Properties WITH POWER OF SALE, and that, upon the occurrence and during the
continuance of any Lease Event of Default, the Lessor shall have the power and
authority, to the extent provided by law, after prior notice and lapse of such
time as may be required by law, to foreclose its interest (or cause such
interest to be foreclosed) in all or any part of the Properties.

     17.6  Final Liquidated Damages.
           ------------------------

     If a Lease Event of Default shall have occurred and be continuing, whether
or not this Lease shall have been terminated pursuant to Section 17.1 and
whether or not Lessor shall have collected any current liquidated damages
pursuant to Section 17.4, Lessor shall have the right to recover, by demand to
Lessee and at Lessor's election, and Lessee shall pay to Lessor, as and for
final liquidated damages, but exclusive of the indemnities payable under Section
13 of the Participation Agreement, and in lieu of all current liquidated damages
beyond the date of such demand (it being agreed that it would be impossible
accurately to determine actual damages) the Termination Value.  Upon payment of
the amount specified pursuant to the first sentence of this Section 17.6, Lessee
shall be entitled to receive from Lessor, either at Lessee's request or upon

                                      -22-
<PAGE>

Lessor's election, in either case at Lessee's cost, an assignment of Lessor's
entire right, title and interest in and to the Properties, the Improvements,
Fixtures, Modifications and Equipment and any insurance or condemnation proceeds
in connection therewith, in each case in recordable form and otherwise in
conformity with local custom and free and clear of the Lien of this Lease
(including the release of any memorandum of Lease and Lease Supplement recorded
in connection therewith) and any Lessor Liens. The Properties shall be conveyed
to Lessee "AS IS" and in their then present physical condition. If any statute
or rule of law shall limit the amount of such final liquidated damages to less
than the amount agreed upon, Lessor shall be entitled to the maximum amount
allowable under such statute or rule of law; provided, however, Lessee shall not
                                             --------  -------
be entitled to receive an assignment of Lessor's interest in the Properties, the
Improvements, Fixtures, Modifications or Equipment or documents unless Lessee
shall have paid in full the Termination Value. Lessee specifically acknowledges
and agrees that its obligations under this Section 17.4 shall be absolute and
unconditional under any and all circumstances and shall be paid and/or
performed, as the case may be, without notice or demand and without any
abatement, reduction, diminution, setoff, defense, counterclaim or recoupment
whatsoever.

     17.7  Lessee's Purchase Option During Default.
           ---------------------------------------

     If Lessee exercises its option to purchase a Property in accordance with
Section 20.2 (without regard to the limitation contained in the first sentence
of Section 20.2 regarding the absence of Lease Events of Default) within five
(5) days of the occurrence of a Lease Event of Default, the purchase of the
applicable Property within such five (5) day period shall be deemed to have
cured such Lease Event of Default to the extent such Lease Event of Default is
no longer continuing with respect to any other Property remaining subject to
this Lease after purchase of the Property in connection with the exercise of the
purchase option.

     17.8  Waiver of Certain Rights.
           ------------------------

     If this Lease shall be terminated pursuant to Section 17.1, Lessee waives,
to the fullest extent permitted by law, (a) any notice of re-entry or the
institution of legal proceedings to obtain re-entry or possession; (b) any right
of redemption, re-entry or possession; (c) the benefit of any laws now or
hereafter in force exempting property from liability for rent or for debt; and
(d) any other rights which might otherwise limit or modify any of Lessor's
rights or remedies under this Article XVII.

     17.9  Assignment of Rights Under Contracts.
           ------------------------------------

     If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessee shall upon Lessor's demand immediately assign, transfer and set over to
Lessor all of Lessee's right, title and interest in and to each agreement
executed by Lessee in connection with the purchase, construction, development,
use or operation of the Properties (including, without limitation, all right,
title and interest of Lessee with respect to all warranty, performance, service
and indemnity provisions), as and to the extent that the same relate to the
purchase, construction, use and operation of the Properties.

                                      -23-
<PAGE>

     17.10 Remedies Cumulative.
           -------------------

     The remedies herein provided shall be cumulative and in addition to (and
not in limitation of) any other remedies available at law, equity or otherwise,
including, without limitation, any mortgage foreclosure remedies.

                                 ARTICLE XVIII

     18.1  Lessor's Right to Cure Lessee's Lease Defaults.
           ----------------------------------------------

     Lessor, without waiving or releasing any obligation or Lease Event of
Default, may (but shall be under no obligation to) remedy any Lease Event of
Default for the account and at the sole cost and expense of Lessee, including
the failure by Lessee to maintain the insurance required by Article XIV, and
may, to the fullest extent permitted by law, and notwithstanding any right of
quiet enjoyment in favor of Lessee, enter upon any Property, or real property
owned or leased by Lessee and take all such action thereon as may be necessary
or appropriate therefor. No such entry shall be deemed an eviction of any
lessee. All out-of-pocket costs and expenses so incurred (including without
limitation fees and expenses of counsel), together with interest thereon at the
Overdue Rate from the date on which such sums or expenses are paid by Lessor,
shall be paid by Lessee to Lessor on demand.

                                  ARTICLE XIX

     19.1  Provisions Relating to Lessee's Exercise of its Purchase Option.
           ---------------------------------------------------------------

     Subject to Section 19.2, in connection with any termination of this Lease
with respect to the Property pursuant to the terms of Section 16.2, or in
connection with Lessee's exercise of its Purchase Option, upon the date on which
this Lease is to terminate with respect to the Property, and upon tender by
Lessee of the amounts set forth in Sections 16.2(b) or 20.2, as applicable,
Lessor shall execute and deliver to Lessee (or to Lessee's designee) at Lessee's
cost and expense an assignment of Lessor's entire interest in the Property, in
each case in recordable form and otherwise in conformity with local custom and
free and clear of any Lessor Liens attributable to Lessor but without any other
warranties (of title or otherwise) from the Lessor.  The Property shall be
conveyed to Lessee "AS IS" "WHERE IS" and in then present physical condition.

     19.2  No Purchase or Termination With Respect to Less than All of a
           -------------------------------------------------------------
Property.
--------

     Lessee shall not be entitled to exercise its Purchase Option or the Sale
Option separately with respect to any Property consisting of Land, Equipment
and/or Improvements but shall be required to exercise its Purchase Option or the
Sale Option with respect to an entire Property.

                                      -24-
<PAGE>

                                  ARTICLE XX

     20.1  Purchase Option or Sale Option-General Provisions.
           -------------------------------------------------

     Not less than 120 days and no more than 180 days prior to the Expiration
Date or any Payment Date after the Basic Term has commenced for all Properties,
Lessee may give Lessor and Agent irrevocable written notice (the "Election
                                                                  --------
Notice") that Lessee is electing to exercise either (a) the option to purchase
------
all the Properties on the Expiration Date or on the Payment Date specified in
the Election Notice or, in accordance with the Individual Property Sale
Requirements, the option to purchase one or more, but less than all, the
Properties on the Payment Date specified in the Election Notice for such
purchase (the "Purchase Option") or (b) with respect to an Election Notice given
               ---------------
in connection with the Expiration Date only, the option to remarket all, but not
less than all, the Properties to a Person other than Lessee or any Affiliate of
Lessee and cause a sale of such Properties to occur on the Expiration Date
pursuant to the terms of Section 22.1 (the "Sale Option").  Regarding the
                                            -----------
purchase of one or more, but less than all, the Properties, at Lessee's option
and without the consent of any Financing Party, Lessee may provide irrevocable
written notice to Lessor not less than one hundred twenty (120) days and no more
than one hundred eighty days prior to any Payment Date that Lessee desires to
purchase one or more, but less than all, of the Properties, if (i) the Lessee
shall have provided an Appraisal demonstrating that the Properties remaining in
the Trust and leased to Lessee pursuant to this Lease and subject to the
guaranty by Capital One Bank shall have a Fair Market Sale Value of 75% or more
of the Property Cost allocable to such remaining Properties and (ii) on the date
of such Election Notice and at the time of sale to Lessee of such Property, no
Default or Event of Default shall have occurred and be continuing (other than
those that will be cured by the payment of the Termination Value for such
Property pursuant to Section 17.7) (the terms referenced in the foregoing
subsections (i) and (ii) may be referred to as the "Individual Property Sale
                                                    ------------------------
Requirements").  To the extent the Individual Property Sale Requirements are
------------
satisfied, Lessor shall sell such Property to Lessee. If Lessee does not give an
Election Notice indicating the Purchase Option or the Sale Option at least 120
days and not more than 180 days prior to the Expiration Date, then, unless such
Expiration Date is the final Expiration Date to which the Term may be extended,
the Term of this Lease shall be extended in accordance with Section 2.2 hereof;
if such Expiration Date is the final Expiration Date, then Lessee shall be
deemed to have elected the Purchase Option with respect to all the Properties.
If Lessee shall elect the Sale Option and fail to cause the Properties to be
sold or surrendered to Lessor at Lessor's option in accordance with the terms of
Section 22.1 on the Expiration Date, then Lessee shall be deemed to have elected
to exercise the Purchase Option (on the Sale Date) as set forth above. If Lessee
shall elect (or is deemed to have elected) to exercise the Purchase Option, then
Lessee shall pay to Lessor on the date on which such purchase is to occur an
amount equal to the Termination Value for all of the Properties (which the
parties do not intend to be a "bargain" purchase), and, upon receipt of such
amount, Lessor shall transfer to Lessee all of Lessor's right, title and
interest in and to the Properties in accordance with Section 20.2.

                                      -25-
<PAGE>

     20.2  Lessee Purchase Option.
           ----------------------

     Provided no Default or Event of Default shall have occurred and be
continuing (subject to Section 17.7) and provided that the Election Notice has
been appropriately given specifying the Purchase Option, Lessee shall purchase
all of the Properties (or, if applicable, and upon satisfaction of all
Individual Property Sale Requirements, one or more, but less than all, of the
Properties pursuant to a notice provided in accordance with Section 20.1) on the
Expiration Date or Payment Date (all as specified in the Election Notice) at a
price equal to the Termination Value for such Properties (which the parties do
not intend to be a "bargain" purchase price).

     Subject to Section 19.2, in connection with any termination of this Lease
with respect to any Property pursuant to the terms of Section 16.2, or in
connection with Lessee's exercise of its Purchase Option, upon the date on which
this Lease is to terminate with respect to a Property or all of the Properties,
and upon tender by Lessee of the amounts set forth in Section 16.2(b) or this
Section 20.2, as applicable, Lessor shall execute, acknowledge (where required)
and deliver to Lessee, at Lessee's cost and expense, each of the following:  (i)
a special or limited warranty Deed or a Bargain and Sale Deed conveying the
Property (to the extent it is real property) to Lessee free and clear of the
Lien of this Lease, the Lien of the Credit Documents and any Lessor Liens; (ii)
a Bill of Sale conveying the Property (to the extent it is personal property) to
Lessee free and clear of the Lien of this Lease, the Lien of the Credit
Documents and any Lessor Liens; (iii) any real estate tax affidavit or other
document required by law to be executed and filed in order to record the Deed;
and (iv) a FIRPTA affidavit. The applicable Property, together with any
insurance or condemnation proceeds with respect to such Property, shall be
conveyed to Lessee "AS IS" "WHERE IS" and in then present physical condition.

     If any Property is the subject of remediation efforts respecting Hazardous
Substances at the Expiration Date which could materially and adversely impact
the Fair Market Sales Value of such Property, then Lessee shall be obligated to
repurchase each such Property pursuant to Section 20.2.

     20.3  Third Party Sale Option.
           -----------------------

           (a)   Provided no Default or Event of Default shall have occurred and
     be continuing and provided that the Election Notice has been appropriately
     given specifying the Sale Option, Lessee shall undertake to cause a sale of
     the Properties on the Expiration Date (all as specified in the Election
     Notice) in accordance with the provisions of Section 22.1 hereof.

           (b)   In the event the Lessee exercises the Sale Option then, as soon
     as practicable and in all events prior to the Expiration Date, the Lessee
     at its expense shall cause to be delivered to Lessor an environmental site
     assessment or an update to a prior environmental site assessment for each
     of the Properties recently prepared (no later than 30 days old) by an
     independent recognized professional acceptable to Lessor and the Agent and
     in form, scope and content satisfactory to Lessor and the Agent. In the
     event that Lessor and the Agent shall not have received such environmental
     assessment by the

                                      -26-
<PAGE>

     Expiration Date or in the event that such environmental assessment shall
     reveal the existence of any material violation of Environmental Laws, other
     material Environmental Violation or potential material Environmental
     Violation (with materiality determined in each case in Lessor's sole
     discretion), then Lessee on the Expiration Date shall pay to Lessor an
     amount equal to the Termination Value for all of the Properties and any and
     all other amounts due and owing hereunder. Upon receipt of such payment and
     all other amounts due under the Lease, Lessor shall transfer to Lessee all
     of Lessor's right, title and interest in and to the Properties in
     accordance with Section 19.1.

                                  ARTICLE XXI

     21.1  [Intentionally Omitted]

                                 ARTICLE XXII

     22.1  Sale Procedure.
           --------------

           (a)   During the Marketing Period, Lessee, on behalf of the Lessor,
     shall obtain bids for the cash purchase of the Properties in connection
     with a sale to one or more purchasers to be consummated on the Expiration
     Date (the "Sale Date") for the highest price available, shall notify Lessor
                ---------
     promptly of the name and address of each prospective purchaser and the cash
     price which each prospective purchaser shall have offered to pay for each
     such Property and shall provide Lessor with such additional information
     about the bids and the bid solicitation procedure as Lessor may reasonably
     request from time to time.  All such prospective purchasers must be Persons
     other than Lessee or any Affiliate of Lessee.  On the Sale Date unless such
     amounts have been otherwise paid at such time, Lessee shall pay (or cause
     to be paid) to Lessor the sum of all costs and expenses referred to in
     clause FIRST of Section 22.2, all Rent and all other amounts then due and
     payable or accrued under this Lease and/or any other Operative Agreement.

           Lessor may reject any and all bids and may assume sole responsibility
     for obtaining bids by giving Lessee written notice to that effect;
     provided, however, that notwithstanding the foregoing, Lessor may not
     --------  -------
     reject the bids submitted by the Lessee if such bids, in the aggregate, are
     greater than or equal to the sum of the Limited Recourse Amount for the
     Properties, plus all costs and expenses referred to in clause FIRST of
     Section 22.2 and represent bona fide offers from one or more third party
     purchasers. If the Lessor rejects any and all bids pursuant to this Section
     22.1 or if there are no bids, Lessee shall surrender, or cause to be
     surrendered, each of the Properties in accordance with the terms and
     conditions of Section 10.1.

           Unless Lessor shall have elected to retain the Properties pursuant to
     the provisions of the final sentence of the preceding paragraph, Lessee
     shall arrange for Lessor to sell the Properties free and clear of the Lien
     of this Lease and any Lessor Liens attributable to

                                      -27-
<PAGE>

     it, without recourse or warranty (of title or otherwise), for cash on the
     Sale Date to the purchaser or purchasers identified by Lessee or Lessor, as
     the case may be; provided, however, solely as to Lessor or the Trust
                      --------  -------
     Company, in its individual capacity, any Lessor Lien shall not constitute a
     Lessor Lien so long as Lessor or the Trust Company, in its individual
     capacity, is diligently contesting such Lessor Lien by appropriate
     proceedings. To effect such transfer and assignment, Lessor shall execute,
     acknowledge (where required) and deliver to the appropriate purchaser each
     of the following: (i) a special or limited warranty Deed conveying the
     Properties (to the extent they are real property) to the appropriate
     purchaser free and clear of the Lien of this Lease, the Lien of the Credit
     Documents and any Lessor Liens; (ii) a Bill of Sale conveying the
     Properties (to the extent it is personal property) to the appropriate
     purchaser free and clear of the Lien of this Lease, the Lien of the Credit
     Documents and any Lessor Liens; (iii) any real estate tax affidavit or
     other document required by law to be executed and filed in order to record
     the Deed; and (iv) a FIRPTA affidavit. Lessee shall surrender the
     Properties so sold or subject to such documents to each purchaser in the
     condition specified in Section 10.1. Lessee shall not take or fail to take
     any action which would have the effect of unreasonably discouraging bona
     fide third party bids for any Property. If each of the Properties is not
     either (i) sold on the Sale Date in accordance with the terms of this
     Section 22.1, or (ii) retained by the Lessor pursuant to the second
     paragraph of this Section 22.1(a), then the Lessee shall be deemed to have
     elected the Purchase Option pursuant to Section 20.1.

           (b)   If the Properties are sold on a Sale Date to one or more third
     party purchasers in accordance with the terms of Section 22.1(a) and the
     aggregate purchase price paid for the Properties is less than the sum of
     the aggregate Property Cost for the Properties (hereinafter such difference
     shall be referred to as the "Deficiency Balance"), then the Lessee hereby
                                  ------------------
     unconditionally promises to pay to the Lessor on the Sale Date all Rent
     (other than the Termination Value and the Maximum Residual Guarantee
     Amount) and all other amounts then due and owing pursuant to the Operative
     Agreements and the lesser of (i) the Deficiency Balance, or (ii) the
     Maximum Residual Guarantee Amount for all of the Properties.  If the
     Properties are retained by the Lessor pursuant to an affirmative election
     made by the Lessor pursuant to the provisions of Section 22.1(a), then the
     Lessee hereby unconditionally promises to pay to the Lessor on the Sale
     Date all Rent (other than the Termination Value and the Maximum Residual
     Guarantee Amount) and all other amounts then due and owing pursuant to the
     Operative Agreements and an amount equal to the Maximum Residual Guarantee
     Amount for the Properties.

           (c)   In the event that the Properties are either sold to one or more
     third party purchasers on the Sale Date or retained by the Lessor in
     connection with an affirmative election made by the Lessor pursuant to the
     provisions of Section 22.1(a), then in either case on the applicable Sale
     Date, to the extent in Lessee's possession or reasonable control, the
     Lessee shall provide Lessor or such third party purchaser with (i) all
     permits, certificates of occupancy, governmental licenses and
     authorizations necessary to use and operate each such Property for its
     intended purposes, (ii) such easements, licenses, rights-of-way and other
     rights and privileges in the nature of an easement as are reasonably

                                      -28-
<PAGE>

     necessary or desirable in connection with the use, repair, access to or
     maintenance of each such Property for its intended purpose or otherwise as
     the Lessor shall reasonably request, and (iii) a services agreement
     covering such services as Lessor or such third party purchaser may request
     in order to use and operate each such Property for its intended purposes at
     such rates (not in excess of arm's-length fair market rates) as shall be
     acceptable to Lessee and Lessor or such third party purchaser. All
     assignments, licenses, easements, agreements and other deliveries required
     by clauses (i) and (ii) of this paragraph (c) shall be in form reasonably
     satisfactory to the Lessor or such third party purchaser, as applicable,
     and shall be fully assignable (including both primary assignments and
     assignments given in the nature of security) without payment of any fee,
     cost or other charge.

     22.2  Application of Proceeds of Sale.
           -------------------------------

     The Lessor shall apply the proceeds of sale of any Property in the
following order of priority:

               (i)    FIRST, to pay or to reimburse Lessor for the payment of
                      -----
     all reasonable costs and expenses incurred by Lessor in connection with the
     sale;

               (ii)   SECOND, so long as the Credit Agreement is in effect and
                      ------
     any Holder Fundings or any amount is owing to the Holders under any
     Operative Agreement, to the Agent to be applied pursuant to inter-creditor
     provisions between the Lenders and the Holders contained in the Operative
     Agreements; and

               (iii)  THIRD, to the Lessee.
                      -----

     22.3  Indemnity for Excessive Wear.
           ----------------------------

     If the proceeds of the sale described in Section 22.1 with respect to the
Properties, less all expenses incurred by Lessor in connection with such sale,
shall be less than the Limited Recourse Amount with respect to the Properties,
and at the time of such sale it shall have been reasonably determined (pursuant
to the Appraisal Procedure) that the Fair Market Sales Value of the Properties,
shall have been impaired by greater than expected wear and tear during the term
of the Lease, Lessee shall pay to Lessor within ten (10) days after receipt of
Lessor's written statement (i) the amount of such excess wear and tear
determined by the Appraisal Procedure or (ii) the amount of the Net Sale
Proceeds Shortfall, whichever amount is less.

     22.4  Appraisal Procedure.
           -------------------

     For determining the Fair Market Sales Value of the Properties or any other
amount which may, pursuant to any provision of any Operative Agreement, be
determined by an appraisal procedure, Lessor and Lessee shall use the following
procedure (the "Appraisal Procedure").  Lessor and Lessee shall endeavor to
                -------------------
reach a mutual agreement as to such amount for a period of ten (10) days from
commencement of the Appraisal Procedure under the applicable section of the

                                      -29-
<PAGE>

Lease, and if they cannot agree within ten (10) days, then two qualified
appraisers, one chosen by Lessee and one chosen by Lessor, shall mutually agree
thereupon, but if either party shall fail to choose an appraiser within twenty
(20) days after notice from the other party of the selection of its appraiser,
then the appraisal by such appointed appraiser shall be binding on Lessee and
Lessor.  If the two appraisers cannot agree within twenty (20) days after both
shall have been appointed, then a third appraiser shall be selected by the two
appraisers or, failing agreement as to such third appraiser within (30) days
after both shall have been appointed, by the American Arbitration Association.
The decisions of the three appraisers shall be given within twenty (20) days of
the appointment of the third appraiser and the decision of the appraiser most
different from the average of the other two shall be discarded and such average
shall be binding on Lessor and Lessee; provided that if the highest appraisal
                                       --------
and the lowest appraisal are equidistant from the third appraisal, the third
appraisal shall be binding on Lessor and Lessee.  The fees and expenses of the
appraiser appointed by Lessee shall be paid by Lessee; the fees and expenses of
the appraiser appointed by Lessor shall be paid by Lessor (such fees and
expenses not being indemnified pursuant to Section 13 of the Participation
Agreement); and the fees and expenses of the third appraiser shall be divided
equally between Lessee and Lessor.

     22.5  Certain Obligations Continue.
           ----------------------------

     During the Marketing Period, the obligation of Lessee to pay Rent with
respect to the Properties (including the installment of Basic Rent due on the
Expiration Date) shall continue undiminished until payment in full to Lessor of
the sale proceeds, if any, the Maximum Residual Guarantee Amount or portion
thereof payable under Section 22.1(b), the amount due under Section 22.3, if
any, and all other amounts due to Lessor with respect to all Properties.  Lessor
shall have the right, but shall be under no duty, to solicit bids, to inquire
into the efforts of Lessee to obtain bids or otherwise to take action in
connection with any such sale, other than as expressly provided in this Article
XXII.

                                 ARTICLE XXIII

     23.1  Holding Over.
           ------------

     If Lessee shall for any reason remain in possession of a Property after the
expiration or earlier termination of this Lease as to such Property (unless such
Property is conveyed to Lessee), such possession shall be as a tenancy at
sufferance during which time Lessee shall continue to pay Supplemental Rent that
would be payable by Lessee hereunder were the Lease then in full force and
effect with respect to the Property and Lessee shall continue to pay Basic Rent
at 110% of the Basic Rent that would otherwise be due and payable at such time.
Such Basic Rent shall be payable from time to time upon demand by Lessor and
such additional 10% amount shall be applied by the Lessor to the payment of the
Loans pursuant to the Credit Agreement and the Holder Fundings pursuant to the
Trust Agreement pro rata between the Loans and the Holder Fundings.  During any
period of tenancy at sufferance, Lessee shall, subject to the second preceding
sentence, be obligated to perform and observe all of the terms, covenants and
conditions of this Lease, but shall have no rights hereunder other than the
right, to the extent

                                      -30-
<PAGE>

given by law to tenants at sufferance, to continue their occupancy and use of
such Property. Nothing contained in this Article XXIII shall constitute the
consent, express or implied, of Lessor to the holding over of Lessee after the
expiration or earlier termination of this Lease as to any Property (unless such
Property is conveyed to Lessee) and nothing contained herein shall be read or
construed as preventing Lessor from maintaining a suit for possession of such
Property or exercising any other remedy available to Lessor at law or in equity.

                                 ARTICLE XXIV

     24.1  Risk of Loss.
           -------------

     During the Term, unless Lessee shall not be in actual possession of the
Property in question solely by reason of Lessor's exercise of its remedies of
dispossession under Article XVII, the risk of loss or decrease in the enjoyment
and beneficial use of such Property as a result of the damage or destruction
thereof by fire, the elements, casualties, thefts, riots, wars or otherwise is
assumed by Lessee, and Lessor shall in no event be answerable or accountable
therefor.

                                  ARTICLE XXV

     25.1  Assignment.
           ----------

           (a)  Lessee may not assign this Lease or any of its rights or
     obligations hereunder in whole or in part to any Person other than COFC or
     a Wholly-Owned Subsidiary of COFC without the prior written consent of the
     Agent and the Lessor.

           (b)  No assignment (referenced in this Section 25.1 or otherwise) or
     other relinquishment of possession to any Property shall in any way
     discharge or diminish any of the obligations of Lessee to Lessor hereunder
     and Lessee shall remain directly and primarily liable under this Lease as
     to any assignment regarding this Lease.

     25.2  Subleases.
           ---------

           (a)  Promptly following the execution and delivery of any sublease
     permitted by this Article XXV, Lessee shall notify Lessor and the Agent of
     the execution of such sublease. As of the date of each Lease Supplement,
     Lessee shall lease the respective Properties described in such Lease
     Supplement from Lessor, and there shall be no existing tenant respecting
     such Property other than the Lessee, except to the extent such sublease is
     permitted under subsection (b) of this Section 25.2.

           (b)  Upon written notice to the Financing Parties and subject to the
     provisions of Section 25.2(c), Lessee may sublet any Property or portion
     thereof (i) to any Person so long as the sublease shall be expressly
     subject and subordinate to this Lease, the term of

                                     -31-
<PAGE>

     the sublease does not extend beyond the Term of this Lease and the sublease
     is on fair market terms and at a fair market rental, or (ii) to COFC or a
     Wholly-Owned Subsidiary of COFC or to an Affiliate or Subsidiary of the
     Lessee. No other subleases shall be permitted unless consented to in
     writing by the Lessor.

           (c)  No sublease (referenced in this Section 25.2 or otherwise) or
     other relinquishment of possession to any Property shall in any way
     discharge or diminish any of Lessee's obligations to Lessor hereunder and
     Lessee shall remain directly and primarily liable under this Lease as to
     the Property, or portion thereof, so sublet.

                                 ARTICLE XXVI

     26.1  No Waiver.
           ---------

     No failure by Lessor or Lessee to insist upon the strict performance of any
term hereof or to exercise any right, power or remedy upon a default hereunder,
and no acceptance of full or partial payment of Rent during the continuance of
any such default, shall constitute a waiver of any such default or of any such
term.  To the fullest extent permitted by law, no waiver of any default shall
affect or alter this Lease, and this Lease shall continue in full force and
effect with respect to any other then existing or subsequent default.

                                 ARTICLE XXVII

     27.1  Acceptance of Surrender.
           -----------------------

     No surrender to Lessor of this Lease or of all or any portion of any
Property or of any part of any thereof or of any interest therein shall be valid
or effective unless agreed to and accepted in writing by Lessor and the Agent
and, prior to the payment or performance of all obligations under the Credit
Documents, the Agent, and no act by Lessor or the Agent or any representative or
agent of Lessor or the Agent, other than a written acceptance, shall constitute
an acceptance of any such surrender.

     27.2  No Merger of Title.
           ------------------

     There shall be no merger of this Lease or of the leasehold estate created
hereby by reason of the fact that the same Person may acquire, own or hold,
directly or indirectly, in whole or in part, (a) this Lease or the leasehold
estate created hereby or any interest in this Lease or such leasehold estate,
(b) any right, title or interest in any Property, (c) any Notes, or (d) a
beneficial interest in Lessor.

                                     -32-
<PAGE>

                                ARTICLE XXVIII

     28.1  Incorporation of Covenants.
           --------------------------

     Reference is made to that certain Second Amended and Restated Credit
Agreement dated as of May 25, 1999 (the "Capital One Credit Agreement") among
COFC, Capital One Bank and Capital One, F.S.B., as borrowers, The Chase
Manhattan Bank, as Administrative Agent and the other financial institutions
party thereto.  Further reference is made to the representations and warranties
of the Guarantor contained in Section 7 of the Capital One Credit Agreement
other than the representations contained in Sections 7.04, 7.05, 7.06 and 7.13
(hereinafter referred to as the "Incorporated Representations and Warranties")
and the covenants of the Guarantor contained in Section 8 of the Capital One
Credit Agreement (hereinafter referred to as the "Incorporated Covenants").  The
                                                  ----------------------
Lessee agrees with the Lessor that the Incorporated Representations and
Warranties and the Incorporated Covenants (and all other relevant provisions of
the Capital One Credit Agreement related thereto, including specifically without
limitation the defined terms contained in Section 1 thereof which are used in
the Incorporated Representations and Warranties and the Incorporated Covenants)
are hereby incorporated by reference into this Lease to the same extent and with
the same effect as if set forth fully herein and shall inure to the benefit of
the Lessor, without giving effect to any waiver, amendment, modification or
replacement of the Capital One Credit Agreement or any term or provision of the
Incorporated Representations and Warranties or the Incorporated Covenants
occurring subsequent to the date of this Lease, except to the extent otherwise
specifically provided in the following provisions of this paragraph.  In the
event a waiver is granted under the Capital One Credit Agreement or an amendment
or modification is executed with respect to the Capital One Credit Agreement,
and such waiver, amendment and/or modification affects the Incorporated
Representations and Warranties or the Incorporated Covenants, then such waiver,
amendment or modification shall be effective with respect to the Incorporated
Representations and Warranties and the Incorporated Covenants as incorporated by
reference into this Lease only if consented to in writing by the Majority
Lenders.  In the event of any replacement of the Capital One Credit Agreement
with a similar credit facility (the "New Facility") the representations and
                                     ------------
warranties and covenants of the Guarantor contained in the New Facility which
correspond to the representations and warranties and covenants of the Guarantor
contained in Section 7 and Section 8 of the Capital One Credit Agreement shall
become the Incorporated Representations and Warranties and the Incorporated
Covenants hereunder only if consented to in writing by the Lessor and the
Majority Lenders and, if such consent is not granted or if the Capital One
Credit Agreement is terminated and not replaced, then the representations and
warranties and covenants of the Guarantor contained in Section 7 and Section 8
of the Capital One Credit Agreement (together with any modifications or
amendments approved in accordance with this paragraph) shall continue to be the
Incorporated Representations and Warranties and the Incorporated Covenants
hereunder.

                                     -33-
<PAGE>

                                 ARTICLE XXIX

     29.1  Notices.
           -------

     All notices required or permitted to be given under this Lease shall be in
writing.  Notices may be served by certified or registered mail, postage paid
with return receipt requested; by private courier, prepaid; by telex, facsimile,
or other telecommunication device capable of transmitting or creating a written
record; or personally.  Mailed notices shall be deemed delivered five days after
mailing, properly addressed.  Couriered notices shall be deemed delivered when
delivered as addressed, or if the addressee refuses delivery, when presented for
delivery notwithstanding such refusal.  Telex or telecommunicated notices shall
be deemed delivered when receipt is either confirmed by confirming transmission
equipment or acknowledged by the addressee or its office.  Personal delivery
shall be effective when accomplished.  Unless a party changes its address by
giving notice to the other party as provided herein, notices shall be delivered
to the parties at the following addresses:

     If to Lessee:

          Capital One Realty, Inc.
          2980 Fairview Park Drive, Suite 1300
          Falls Church, Virginia  22042
          Attention: Director of Capital Markets
          Telephone No.: (703) 205-1000
          Telecopy No.: (703) 205-1748

     with a copy to:

          Capital One Bank
          c/o Capital One Services, Inc.
          2980 Fairview Park Drive, Suite 1300
          Falls Church, Virginia 22042
          Attention: Director of Capital Markets
          Telephone No.: (703) 205-1000
          Telecopy No.: (703) 205-1748

with a further copy to the Legal Department of Capital One Bank at the
immediately preceding address.

                                     -34-
<PAGE>

     If to Lessor:

          First Security Bank, National Association
          79 South Main Street, 3rd Floor
          Salt Lake City, Utah 84111
          Attention: Val T. Orton
          Telephone No.: (801) 246-5300
          Telecopy No.: (801) 246-5053

     with a copy to the Agent:

          Bank of America, N.A.
          901 Main Street
          66th Floor
          Dallas, Texas 75202
          Attention: Shelly K. Harper
          Telephone No.: (214) 209-0567
          Telecopy No.: (214) 209-0604

or such additional parties and/or other address as such party may hereafter
designate, and shall be effective upon receipt or refusal thereof.

                                  ARTICLE XXX

     30.1  Miscellaneous.
           -------------

     Anything contained in this Lease to the contrary notwithstanding, all
claims against and liabilities of Lessee or Lessor arising from events
commencing prior to the expiration or earlier termination of this Lease shall
survive such expiration or earlier termination.  If any provision of this Lease
shall be held to be unenforceable in any jurisdiction, such unenforceability
shall not affect the enforceability of any other provision of this Lease and
such jurisdiction or of such provision or of any other provision hereof in any
other jurisdiction.

     30.2  Amendments and Modifications.
           ----------------------------

     Neither this Lease, any Lease Supplement nor any provision hereof may be
amended, waived, discharged or terminated except by an instrument in writing in
recordable form signed by Lessor and Lessee.

     30.3  Successors and Assigns.
           ----------------------

     All the terms and provisions of this Lease shall inure to the benefit of
the parties hereto and their respective successors and permitted assigns.

                                     -35-
<PAGE>

     30.4  Headings and Table of Contents.
           ------------------------------

     The headings and table of contents in this Lease are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     30.5  Counterparts.
           ------------

     This Lease may be executed in any number of counterparts, each of which
shall be an original, but all of which shall together constitute one and the
same instrument.

     30.6  GOVERNING LAW.
           -------------

     THIS LEASE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE COMMONWEALTH OF VIRGINIA, EXCEPT TO THE EXTENT THAT IN SEEKING TO ENFORCE
THIS LEASE WITH RESPECT TO A PROPERTY AND TO THE EXTENT ANY OTHER RIGHTS AND
OBLIGATIONS HEREUNDER ARE REQUIRED TO BE GOVERNED UNDER THE LAWS OF THE STATE IN
WHICH SUCH PROPERTY IS LOCATED, THE LAWS OF THE STATE IN WHICH SUCH PROPERTY IS
LOCATED SHALL APPLY.

     30.7  Calculation of Rent.
           -------------------

     All calculation of Rent payable hereunder shall be computed based on the
actual number of days elapsed over a year of 360 days.

     30.8  Memoranda of Lease and Lease Supplements.
           ----------------------------------------

     This Lease shall not be recorded; provided, Lessor and Lessee shall
                                       --------
promptly record (a) a memorandum of this Lease or a short form Lease (in form
and substance reasonably satisfactory to Lessor) regarding each Property
promptly after the Property Closing Date with respect thereto, and (b) a
memorandum of the applicable Lease Supplement (in substantially the form of
Exhibit B attached hereto, subject to revisions to accommodate local law) or a
---------
short form lease (in form and substance reasonably satisfactory to Lessor)
regarding each Property promptly after the Basic Term Commencement Date with
respect to such Property, in each case in the local filing office with respect
thereto, in all cases at Lessee's cost and expense, and as required under
applicable law to sufficiently evidence this Lease or any such Lease Supplement
in the applicable real estate filing records.

     30.9  Allocations between the Lenders and the Holders.
           -----------------------------------------------

     Notwithstanding any other term or provision of this Lease to the contrary,
the allocations of the proceeds of the Properties and any and all other Rent and
other amounts received hereunder shall be subject to the inter-creditor
provisions between the Lenders and the Holders contained in the Operative
Agreements (or as otherwise agreed among the Lenders and the Holders from time
to time).

                                     -36-
<PAGE>

     30.10 Limitations on Recourse.
           -----------------------

     Notwithstanding anything contained in this Lease to the contrary, Lessee
agrees to look solely to Lessor's estate and interest in the Properties (and in
no circumstance to the Agent, the Lenders, the Holder or otherwise to Lessor)
for the collection of any judgment requiring the payment of money by Lessor in
the event of liability by Lessor, and no other property or assets of Lessor or
any shareholder, owner or partner (direct or indirect) in or of Lessor, or any
director, officer, employee, beneficiary, Affiliate of any of the foregoing
shall be subject to levy, execution or other enforcement procedure for the
satisfaction of the remedies of Lessee under or with respect to this Lease, the
relationship of Lessor and Lessee hereunder or Lessee's use of the Properties or
any other liability of Lessor to Lessee.  Nothing in this Section shall be
interpreted so as to limit the terms of Sections 6.1 or 6.2.

     30.11 WAIVERS OF JURY TRIAL.
           ---------------------

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE LESSOR AND THE LESSEE
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS LEASE OR ANY COUNTERCLAIM THEREIN.

     30.12 Exercise of Lessor Rights.
           -------------------------

     The Lessee hereby acknowledges and agrees that the rights and powers of the
Lessor under this Lease have been assigned to the Agent pursuant to the terms of
the Security Agreement and the other Operative Agreements.

     30.13 Submission To Jurisdiction; Waivers.
           -----------------------------------

     Each of the parties hereto hereby irrevocably and unconditionally:

           (a) submits for itself and its property in any legal action or
proceeding relating to this Lease and the other Operative Agreements to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the Courts of the
Commonwealth of Virginia, the courts of the United States of America for the
Eastern District of Virginia, and appellate courts from any thereof;

           (b) agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail) postage prepaid, to such party at its
address set forth in Section 29.1 or at such other address of which the parties
hereto shall have been notified pursuant thereto;

           (c) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the right
to sue in any other jurisdiction; and

                                     -37-
<PAGE>

           (d) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section 30.13 any special, exemplary or punitive damages.

     30.14 USURY SAVINGS PROVISION.
           -----------------------

     IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND CONTRACT IN STRICT
COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT.  TO THE EXTENT
ANY RENT OR PAYMENTS HEREUNDER ARE HEREINAFTER CHARACTERIZED BY ANY COURT OF
COMPETENT JURISDICTION AS THE REPAYMENT OF PRINCIPAL AND INTEREST THEREON, THIS
SECTION 30.14 SHALL APPLY.  ANY SUCH RENT OR PAYMENTS SO CHARACTERIZED AS
INTEREST MAY BE REFERRED TO HEREIN AS "INTEREST."  ALL AGREEMENTS AMONG THE
PARTIES HERETO ARE HEREBY LIMITED BY THE PROVISIONS OF THIS PARAGRAPH WHICH
SHALL OVERRIDE AND CONTROL ALL SUCH AGREEMENTS, WHETHER NOW EXISTING OR
HEREAFTER ARISING AND WHETHER WRITTEN OR ORAL.  IN NO WAY, NOR IN ANY EVENT OR
CONTINGENCY (INCLUDING, BUT NOT LIMITED TO, PREPAYMENT OR ACCELERATION OF THE
MATURITY OF ANY OBLIGATION), SHALL ANY INTEREST TAKEN, RESERVED, CONTRACTED FOR,
CHARGED, OR RECEIVED UNDER THIS LEASE OR OTHERWISE, EXCEED THE MAXIMUM
NONUSURIOUS AMOUNT PERMISSIBLE UNDER APPLICABLE LAW.  IF, FROM ANY POSSIBLE
CONSTRUCTION OF ANY OF THE OPERATIVE AGREEMENTS OR ANY OTHER DOCUMENT OR
AGREEMENT, INTEREST WOULD OTHERWISE BE PAYABLE IN EXCESS OF THE MAXIMUM
NONUSURIOUS AMOUNT, ANY SUCH CONSTRUCTION SHALL BE SUBJECT TO THE PROVISIONS OF
THIS PARAGRAPH AND SUCH AMOUNTS UNDER SUCH DOCUMENTS OR AGREEMENTS SHALL BE
AUTOMATICALLY REDUCED TO THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED UNDER
APPLICABLE LAW, WITHOUT THE NECESSITY OF EXECUTION OF ANY AMENDMENT OR NEW
DOCUMENT OR AGREEMENT.  IF LESSOR SHALL EVER RECEIVE ANYTHING OF VALUE WHICH IS
CHARACTERIZED AS INTEREST WITH RESPECT TO THE OBLIGATIONS OWED HEREUNDER OR
UNDER APPLICABLE LAW AND WHICH WOULD, APART FROM THIS PROVISION, BE IN EXCESS OF
THE MAXIMUM LAWFUL AMOUNT, AN AMOUNT EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN
EXCESSIVE INTEREST SHALL, WITHOUT PENALTY, BE APPLIED TO THE REDUCTION OF THE
COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL AND NOT TO THE PAYMENT OF INTEREST,
OR REFUNDED TO LESSEE OR ANY OTHER PAYOR THEREOF, IF AND TO THE EXTENT SUCH
AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE EXCEEDS THE COMPONENT OF PAYMENTS DEEMED
TO BE PRINCIPAL.  THE RIGHT TO DEMAND PAYMENT OF ANY AMOUNTS EVIDENCED BY ANY OF
THE OPERATIVE AGREEMENTS DOES NOT INCLUDE THE RIGHT TO RECEIVE ANY INTEREST
WHICH HAS NOT OTHERWISE ACCRUED ON THE DATE OF SUCH DEMAND, AND LESSOR DOES NOT
INTEND TO CHARGE OR RECEIVE ANY UNEARNED INTEREST IN THE EVENT OF SUCH DEMAND.
ALL INTEREST PAID OR AGREED TO BE PAID

                                     -38-
<PAGE>

TO LESSOR SHALL, TO THE EXTENT PERMITTED BY APPLICABLE LAW, BE AMORTIZED,
PRORATED, ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED TERM (INCLUDING ANY
RENEWAL OR EXTENSION) OF THIS LEASE SO THAT THE AMOUNT OF INTEREST ON ACCOUNT OF
SUCH PAYMENTS DOES NOT EXCEED THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED BY
APPLICABLE LAW.

                           [Signature pages follow]

                                     -39-
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed
and delivered as of the date first above written.

TWO WITNESSES:                  CAPITAL ONE REALTY, INC.

1.  /s/ Al Ciafre               By: /s/ Stephen Linehan
    -------------------------       --------------------------------------------
    Print: Al Ciafre            Name:   Stephen Linehan
           ------------------         ------------------------------------------
                                Title: Director of Corporate Funding
                                       -----------------------------------------
2.  /s/ John Stilmar
    -------------------------
  Print: John Stilmar
         --------------------

TWO WITNESSES:                  FIRST SECURITY BANK, NATIONAL ASSOCIATION,
1.  /s/ Arge Pavlos             not individually, but solely as
    -------------------------
  Print: Arge Pavlos            Owner Trustee under the Capital One Realty Trust
         --------------------
                                1998-1, as Lessor

2.  /s/ Krystal Bagsha          By: /s/ DeAnn Madsen
    -------------------------       --------------------------------------------
  Print:  Krystal Bagsha        Name:   DeAnn Madsen
          -------------------         ------------------------------------------
                                Title:  Assistant Trust Officer
                                     -------------------------------------------

Receipt of this original
counterpart of the foregoing
Lease is hereby acknowledged
as the date hereof

BANK OF AMERICA, N.A.,
as Agent

By:________________________________
Name:______________________________
Title:_____________________________
<PAGE>

STATE OF Utah                  )
                               ) ss:
COUNTY OF Salt Lake            )

     The foregoing Lease Agreement was acknowledged before me, the undersigned
Notary Public, in the County of Salt Lake this 13th day of August, by DeAnn
Madsen, as Assistant Trust Officer of FIRST SECURITY BANK, NATIONAL
ASSOCIATION, a national banking association, not individually, but solely as
Owner Trustee under the Capital One Realty Trust 1998-1, on behalf of the Owner
Trustee.

[Notarial Seal]                          /s/ Michael Green
                                         ---------------------------------------
                                                        Notary Public

My commission expires: Sept. 10, 2002

STATE OF Virginia              )
                               ) ss:
COUNTY OF Fairfax              )

     The foregoing Lease Agreement was acknowledged before me, the undersigned
Notary Public, in the County of Fairfax this 23 day of August, by Stephen
Linehan, as Director of Corporate Funding of CAPITAL ONE REALTY, INC., a
Delaware corporation, on behalf of the corporation.

[Notarial Seal]                          /s/ Francine D. Minnich
                                         ---------------------------------------
                                                        Notary Public

My commission expires: 10/31/1999

STATE OF _______________       )
                               ) ss:
COUNTY OF ______________       )

     The foregoing Lease Agreement was acknowledged before me, the undersigned
Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of BANK OF AMERICA,
N.A., a national banking association, as Agent.

[Notarial Seal]                          _______________________________________
                                                       Notary Public

My commission expires:____________
<PAGE>

                                                                    EXHIBIT A TO
                                                                       THE LEASE
                                                                    ------------

                       [CONFORM TO REQUIREMENTS OF LAW]

                           LEASE SUPPLEMENT NO. ___

     THIS LEASE SUPPLEMENT NO. ___ (this "Lease Supplement") dated as of
                                          ----------------
[________________] between FIRST SECURITY BANK, NATIONAL ASSOCIATION, not
individually, but solely as Owner Trustee under the Capital One Realty Trust
1998-1, as lessor (the "Lessor"), and Capital One Realty, Inc., as lessee (the
                        ------
"Lessee").
-------

     WHEREAS, the Lessor is the owner or will be the owner of the Property
described on Schedule I hereto (the "Leased Property") and wishes to lease the
             ----------              ---------------
same to Lessee;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     SECTION 1.  Definitions; Rules of Usage.  For purposes of this Lease
Supplement, capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in Appendix A to the Participation Agreement,
                                      ----------
dated as of September 3, 1999, among the Lessee, the Lessor, not individually,
except as expressly stated therein, but solely as Owner Trustee under the
Capital One Realty Trust 1998-1, the Holders, the Lenders and Bank of America,
N.A., as Agent for the Lenders and respecting the Security Documents, as Agent
for the Lenders and the Holders, to the extent of their interests.

     SECTION 2.  The Properties.  Attached hereto as Schedule I is the
description of the Leased Property, with an Equipment Schedule attached hereto
as Schedule I-A, an Improvement Schedule attached hereto as Schedule I-B and a
legal description of the Land for such Project attached hereto as Schedule I-C.
Effective upon the execution and delivery of this Lease Supplement by the Lessor
and the Lessee, the Leased Property shall be subject to the terms and provisions
of the Lease.

     SECTION 3.  Use of Property.  At all times during the Term with respect to
each Property, Lessee will comply with all obligations under and (to the extent
no Event of Default exists and provided that such exercise will not impair the
value of such Property) shall be permitted to exercise all rights and remedies
under, all operation and easement agreements and related or similar agreements
applicable to such Property.

     SECTION 4.  Ratification; Incorporation by Reference.  Except as
specifically modified hereby, the terms and provisions of the Lease and the
Operative Agreements are hereby ratified and confirmed and remain in full force
and effect.  The Lease is hereby incorporated herein by reference as though
restated herein in its entirety.
<PAGE>

     SECTION 5.  Original Lease Supplement.  The single executed original of
this Lease Supplement marked "THIS COUNTERPART IS THE ORIGINAL EXECUTED
COUNTERPART" on the signature page thereof and containing the receipt of the
Agent therefor on or following the signature page thereof shall be the original
executed counterpart of this Lease Supplement (the "Original Executed
                                                    -----------------
Counterpart").  To the extent that this Lease Supplement constitutes chattel
-----------
paper, as such term is defined in the Uniform Commercial Code as in effect in
any applicable jurisdiction, no security interest in this Lease Supplement may
be created through the transfer or possession of any counterpart other than the
Original Executed Counterpart.

     SECTION 6.  GOVERNING LAW.  THIS LEASE SUPPLEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE COMMONWEALTH OF VIRGINIA.

     SECTION 7.  Mortgage; Power of Sale.  Without limiting any other remedies
set forth in the Lease, in the event that a court of competent jurisdiction
rules that the Lease constitutes a mortgage, deed of trust or other secured
financing as is the intent of the parties, then the Lessor and the Lessee agree
that the Lessee hereby grants a Lien against the Leased Property WITH POWER OF
SALE, and that, upon the occurrence of any Lease Event of Default, the Lessor
shall have the power and authority, to the extent provided by law, after prior
notice and lapse of such time as may be required by law, to foreclose its
interest (or cause such interest to be foreclosed) in all or any part of the
Leased Property.

     SECTION 8.  Counterpart Execution.  This Lease Supplement may be executed
in any number of counterparts and by each of the parties hereto in separate
counterparts, all such counterparts together constituting but one and the same
instrument.

        [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]
<PAGE>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Lease
Supplement to be duly executed by an officer thereunto duly authorized as of the
date and year first above written.

TWO WITNESSES:                  FIRST SECURITY BANK, NATIONAL
                                ASSOCIATION, not individually, but solely as
1. _____________________        Owner Trustee under the Capital One Realty Trust
   Print: ______________        1998-1, as Lessor

2. _____________________        By:_____________________________________________
   Print:_______________        Name____________________________________________
                                Title:__________________________________________

TWO WITNESSES:                  CAPITAL ONE REALTY, INC. as Lessee

1. _____________________        By:_____________________________________________
   Print:_______________        Name:___________________________________________
                                Title:__________________________________________
2. _____________________
   Print: ______________
<PAGE>

Receipt of this original counterpart of the foregoing Lease Supplement is hereby
acknowledged as the date hereof.

                                     BANK OF AMERICA, N.A., as Agent

                                     By:_______________________________________
                                     Name:_____________________________________
                                     Title:____________________________________

<PAGE>

                      [CONFORM TO STATE LAW REQUIREMENTS]

STATE OF _______________     )
                             ) ss:
COUNTY OF ______________     )

     The foregoing Lease Supplement was acknowledged before me, the undersigned
Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of FIRST SECURITY
BANK, NATIONAL ASSOCIATION, a national banking association, not individually,
but solely as Owner Trustee under the Capital One Realty Trust 1998-1, on behalf
of the Owner Trustee.

[Notarial Seal]                        _________________________________________
                                                       Notary Public

My commission expires: ____________

STATE OF _______________     )
                             ) ss:
COUNTY OF ______________     )

     The foregoing Lease Supplement was acknowledged before me, the undersigned
Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of CAPITAL ONE
REALTY, INC., a Delaware corporation, on behalf of the corporation.

[Notarial Seal]                        _________________________________________
                                                       Notary Public

My commission expires:_____________
<PAGE>

STATE OF _______________     )
                             ) ss:
COUNTY OF ______________     )

     The foregoing Lease Supplement was acknowledged before me, the undersigned
Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of BANK OF AMERICA,
N.A., a national banking association, as Agent.

[Notarial Seal]                        _________________________________________
                                                      Notary Public

                       My commission expires:____________
<PAGE>

                                  SCHEDULE I
                         TO LEASE SUPPLEMENT NO. ____
<PAGE>

                                 SCHEDULE I-A
                         TO LEASE SUPPLEMENT NO. ____

                                  (Equipment)
<PAGE>

                                 SCHEDULE I-B
                         TO LEASE SUPPLEMENT NO. ____

                                (Improvements)
<PAGE>

                                 SCHEDULE I-C
                         TO LEASE SUPPLEMENT NO. ____

                                    (Land)
<PAGE>

                                                          EXHIBIT B TO THE LEASE
                                                          ----------------------

                       [CONFORM TO REQUIREMENTS OF LAW]

Recordation requested by:

Moore & Van Allen, PLLC

After recordation return to:

Moore & Van Allen, PLLC (WMA)
Bank of America Corporate Center
100 North Tryon Street, Floor 47
Charlotte, NC  28202-4003
                                             Space above this line
                                             for Recorder's use

_________________________________

                         MEMORANDUM OF LEASE AGREEMENT
                      (TAX RETENTION OPERATING LEASE) AND
                      LEASE SUPPLEMENT NO. _____________

     THIS MEMORANDUM OF LEASE AGREEMENT (TAX RETENTION OPERATING LEASE) AND
LEASE SUPPLEMENT NO. ____________ ("Memorandum"), dated as of _____________,
199___, is by and between FIRST SECURITY BANK, NATIONAL ASSOCIATION, a national
banking association, not individually, but solely as Owner Trustee under the
Capital One Realty Trust 1998-1, with an office at 79 South Main Street, Salt
Lake City, Utah 84111 (hereinafter referred to as "Landlord") and CAPITAL ONE
REALTY, INC., a Delaware corporation, with an office at 2980 Fairview Park
Drive, Suite 1300, Falls Church, Virginia 22042 (hereinafter referred to as
"Tenant").

                                  WITNESSETH:

     That for value received, Landlord and Tenant do hereby covenant, promise
and agree as follows:

     1.   Demised Premises.  Landlord has leased to Tenant, and Tenant has
          ----------------
leased from Landlord, for the Term (as hereinafter defined), certain real
property and other property located in ________________, which is described in
the attached Exhibit A (the "Property"), pursuant to the terms of a Lease
Agreement (Capital One Realty, Inc.) (Tax Retention Operating Lease
<PAGE>

Agreement), between Landlord and Tenant dated September 3, 1999 (the "Lease")
and a Lease Supplement No. _____ between Landlord and Tenant dated
______________ (the "Lease Supplement").

     2.   Term.  The term of the Lease ("Term") commenced on _______ and shall
          ----
end ______________, unless the Term is extended or earlier terminated in
accordance with the provisions of the Lease.

     3.   Mortgage; Power of Sale.  Without limiting any other remedies set
          -----------------------
forth in the Lease, in the event that a court of competent jurisdiction rules
that the Lease constitutes a mortgage, deed of trust or other secured financing
as is the intent of the parties, then the Lessor and the Lessee agree that the
Lessee has granted, pursuant to the terms of the Lease and the Lease Supplement,
a Lien against the Property WITH POWER OF SALE, and that, upon the occurrence
and during the continuance of any Lease Event of Default, the Lessor shall have
the power and authority, to the extent provided by law, after prior notice and
lapse of such time as may be required by law, to foreclose its interest (or
cause such interest to be foreclosed) in all or any part of the Property.

     4.   Effect of Memorandum.  The purpose of this instrument is to give
          --------------------
notice of the Lease and the Lease Supplement and their respective terms,
covenants and conditions to the same extent as if the Lease and the Lease
Supplement were fully set forth herein.  This Memorandum shall not modify in any
manner the terms, conditions or intent of the Lease or the Lease Supplement and
the parties agree that this Memorandum is not intended nor shall it be used to
interpret the Lease or the Lease Supplement or determine the intent of the
parties under the Lease or the Lease Supplement.

        [The remainder of this page has been intentionally left blank.]
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this instrument
as of the day and year first written.

LANDLORD:                                  TENANT:

FIRST SECURITY BANK,                       CAPITAL ONE REALTY, INC.
NATIONAL ASSOCIATION, not individually,    a Delaware corporation
but solely as Owner Trustee
under the Capital One Realty
Trust 1998-1

By:___________________________      By:__________________________
Its:__________________________      Its:_________________________
<PAGE>

                       [CONFORM TO REQUIREMENTS OF LAW]

STATE OF _______________        )
                                ) ss:
COUNTY OF ______________        )

     The foregoing Lease Supplement was acknowledged before me, the undersigned
Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of FIRST SECURITY
BANK, NATIONAL ASSOCIATION, a national banking association, not individually,
but solely as Owner Trustee under the Capital One Realty Trust 1998-1, on behalf
of the Owner Trustee.

[Notarial Seal]                 _______________________________________________
                                Notary Public

My commission expires:________

STATE OF _______________        )
                                ) ss:
COUNTY OF ______________        )

     The foregoing Lease Supplement was acknowledged before me, the undersigned
Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of CAPITAL ONE
REALTY, INC., a Delaware corporation, on behalf of the corporation.

[Notarial Seal]                 ________________________________________________
                                Notary Public

My commission expires:________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]