Document:

exv10w11

Exhibit 10.11

 

 

HUMAN GENOME SCIENCES, INC.,

as Lessee

and

MANUFACTURERS AND TRADERS TRUST COMPANY,

as Bank

 

REIMBURSEMENT AGREEMENT

 

$23,000,000

Maryland Economic Development Corporation

Taxable Variable Rate Demand/Fixed Rate Revenue Bonds

(Human Genome Sciences, Inc. Facility)

1997 Series

 

Dated as of December 1, 2009

 

 

 

 

 

TABLE OF CONTENTS

     (This Table of Contents is not a part of the Reimbursement Agreement and is only for
convenience of reference.)

	 	 	 	 	 	 	 
	SECTION	 	 	 	PAGE	 
	RECITALS
	 	 	 	 	1	 
	AGREEMENTS
	 	 	 	 	1	 

ARTICLE I

DEFINITIONS

	 	 	 	 	 	 	 
	Section 1.1
	 	Definitions	 	 	2	 
	Section 1.2
	 	Rules of Construction	 	 	8	 

ARTICLE II

EFFECTIVE DATE OF REIMBURSEMENT

AGREEMENT; DURATION OF TERM

	 	 	 	 	 	 	 
	Section 2.1
	 	Effective Date of Reimbursement Agreement; Duration of Term	 	 	8	 

ARTICLE III

PAYMENT PROVISIONS

	 	 	 	 	 	 	 
	Section 3.1
	 	Reimbursement and Other Payments	 	 	9	 
	Section 3.2
	 	Payments due Upon Expiration of Letter of Credit	 	 	11	 
	Section 3.3
	 	Late Payments	 	 	11	 
	Section 3.4
	 	Increased Costs Due to Change in Law	 	 	12	 
	Section 3.5
	 	Computation	 	 	13	 
	Section 3.6
	 	Payment Procedure	 	 	13	 
	Section 3.7
	 	Business Days	 	 	13	 

ARTICLE IV

UNCONDITIONAL OBLIGATIONS

	 	 	 	 	 	 	 
	Section 4.1
	 	Obligations Absolute	 	 	13	 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

	 	 	 	 	 	 	 
	Section 5.1
	 	Representations, Warranties and Undertakings	 	 	14	 

ARTICLE VI

AFFIRMATIVE COVENANTS OF LESSEE

	 	 	 	 	 	 	 
	Section 6.1
	 	Affirmative Covenants of Lessee	 	 	15	 

-i-

 

ARTICLE VII

INDEMNIFICATION

	 	 	 	 	 	 	 
	Section 7.1
	 	Indemnification of Bank	 	 	16	 
	Section 7.2
	 	Indemnification Under Letter of Credit and Letter of Credit Agreement	 	 	17	 

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

	 	 	 	 	 	 	 
	Section 8.1
	 	Events of Default Defined	 	 	17	 
	Section 8.2
	 	Remedies on Default	 	 	19	 
	Section 8.3
	 	No Remedy Exclusive	 	 	20	 
	Section 8.4
	 	Agreement to Pay Attorneys’ Fees and Expenses	 	 	21	 
	Section 8.5
	 	Waiver of Event of Default; No Additional Waiver Implied by One Waiver	 	 	21	 

ARTICLE IX

MISCELLANEOUS

	 	 	 	 	 	 	 
	Section 9.1
	 	Notices	 	 	21	 
	Section 9.2
	 	[Intentionally Omitted]	 	 	22	 
	Section 9.3
	 	[Intentionally Omitted]	 	 	22	 
	Section 9.4
	 	Binding Effect	 	 	22	 
	Section 9.5
	 	Illegality; Severability	 	 	22	 
	Section 9.6
	 	Assignment	 	 	22	 
	Section 9.7
	 	Consent to Jurisdiction; Service of Process; Waiver of Jury Trial	 	 	23	 
	Section 9.8
	 	Further Assurances and Corrective Instruments	 	 	23	 
	Section 9.9
	 	Right to Perform; Advances by Bank	 	 	23	 
	Section 9.10
	 	Amendments, Changes and Modifications	 	 	24	 
	Section 9.11
	 	Execution of Counterparts	 	 	24	 
	Section 9.12
	 	Law Governing Construction of Agreement	 	 	24	 
	Section 9.13
	 	Effective Date	 	 	24	 
	Section 9.14
	 	Conflicting Agreements	 	 	24	 
	Section 9.15
	 	Set-off	 	 	24	 

-ii-

 

REIMBURSEMENT AGREEMENT

     THIS REIMBURSEMENT AGREEMENT is dated as of December 1, 2009 and is made by and between HUMAN
GENOME SCIENCES, INC., a Delaware corporation (the “Lessee”), and MANUFACTURERS AND TRADERS TRUST
COMPANY, a New York banking corporation (the “Bank”).

RECITALS

     Certain of the terms and words used in these Recitals are defined in Section 1.1 of this
Reimbursement Agreement.

     Pursuant to and in accordance with the Act, the Issuer has previously issued and sold Bonds in
the original aggregate principal amount of $23,000,000 for the sole and exclusive purpose of
financing the acquisition and construction by the Issuer of the Facility. The Issuer leases the
Facility to the Lessee pursuant to the Facility Lease.

     The Bonds were issued pursuant to the Indenture.

     In order to enhance the marketability of the Bonds, at the request of the Issuer and the
Lessee, Allfirst Bank, a Maryland state-chartered commercial bank (“Allfirst”), predecessor in
interest to the Bank, issued to the Trustee the Letter of Credit to provide payment for, and to
secure the payment of the principal of, and interest on, and the purchase price of the Bonds.
Allfirst issued the Letter of Credit pursuant to a Letter of Credit Agreement dated as of December
1, 1997, by and between Allfirst and the Issuer (the “Allfirst Letter of Credit Agreement”).

     The Letter of Credit expires on December 15, 2009.

     At the request of the Issuer and the Lessee, the Bank, as successor in interest to Allfirst,
has agreed to extend the Letter of Credit, and, in connection therewith, the Issuer and the Bank
have entered into the Letter of Credit Agreement, which amends and restates the Allfirst Letter of
Credit Agreement in its entirety.

     As a condition to the Bank’s extension of the Letter of Credit, the Bank has required that the
Lessee enter into this Reimbursement Agreement for the benefit of the Bank.

AGREEMENTS

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

1

 

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. Certain terms used in this Reimbursement Agreement are
defined in this Section or are defined by reference to one of the Bond Documents or one of the
other Letter of Credit Documents; and, when and if used herein, such terms shall have the meanings
given to them by the language employed in this Section defining such terms or by the language
employed in such Bond Document or other Letter of Credit Document defining such terms, unless the
context clearly indicates otherwise.

     “Acceleration Drawing” has the meaning given to that term in the Letter of Credit.

     “Act” means Section 10-101, et. seq. of the Economic Development Article of the Annotated Code
of Maryland, as amended, and all future laws supplemental thereto or amendatory thereof.

     “Act of Bankruptcy” means the filing of a petition in bankruptcy under the Bankruptcy Code, or
the commencement of a proceeding under any other applicable law concerning insolvency,
reorganization or bankruptcy.

     “Administration Expenses” means compensation, indemnities and reimbursement of fees, expenses
and advances payable to the Issuer, the Trustee, the Remarketing Agent, the Paying Agent and the
Registrar, all as described in Section 7.10 of the Indenture.

     “Assignment of Leases” means the Assignment, Subordination and Non-Disturbance Agreement dated
as of December 1, 1997, by and among the Issuer, the Bank and the Lessee, together with any and all
Supplements thereto.

     “Bank” means Manufacturers and Traders Trust Company, a New York banking corporation, its
successors and assigns.

     “Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. §§ 101 et seq., and all
future acts supplemental thereto or amendatory thereof.

     “Bond Documents” means and includes (without limitation) the Bonds, the Indenture, the
Placement and Remarketing Agreement and any and all other documents which the Issuer or any other
party or parties or their representatives, have executed and delivered, or may hereafter execute
and deliver, to evidence or secure the Issuer’s Bond Obligations or any part thereof, or in
connection therewith, together with any and all Supplements thereto.

     “Bond Fund” means the Bond Fund created in Section 5.1 of the Indenture.

     “Bond Payment Date” means any Interest Payment Date or any Sinking Fund Installment Date and
any other date on which the principal of, premium (if any) on or interest on the Bonds is to be
paid to the Owners thereof (whether at maturity thereof, or by acceleration of maturity or after
notice of redemption or prepayment or otherwise).

2

 

     “Bond Purchase Drawing” means a Bond Purchase Interest Drawing or a Bond Purchase Principal
Drawing.

     “Bond Purchase Interest Drawing” and “Bond Purchase Principal Drawing” each has the meaning
given to that term by the Letter of Credit.

     “Bonds” means the Issuer’s $23,000,000 Taxable Variable Rate Demand/Fixed Rate Revenue Bonds
(Human Genome Sciences, Inc. Facility), 1997 Issue, issued pursuant to the Indenture.

     “Bonds Tendered or Deemed Tendered for Purchase” has the meaning given to that term in the
Letter of Credit.

     “Building” means the approximately 80,000-square-foot process development and manufacturing
plant located on the Land.

     “Business Day” or “business day” means a day on which (a) banks located in any of the cities
in which the Principal Office of the Trustee, the Bank, the Paying Agent and the Remarketing Agent
is located are not required or authorized by law or executive order to close for business, and (b)
The New York Stock Exchange is not closed.

     “Collateral Pledge Agreement” means the Collateral Pledge Agreement of even date herewith by
and among the Lessee, as Pledgor, the Bank, as Pledgee, and Manufacturers and Traders Trust
Company, acting in its capacity as Collateral Agent, together with any and all Supplements
thereto.

     “Condemnation Award” has the meaning given to that term in the granting clauses of the Deed of
Trust.

     “Deed of Trust” means the Deed of Trust dated as of December 1, 1997, between the Issuer and
the Individual Trustees, together with any and all Supplements thereto.

     “Downgrade” shall mean a withdrawal or a downgrading of one full grade from the long term debt
ratings of the Bank as of the date hereof.

     “Eligible Lease Payments” means all payments made by the Lessee under the Facility Lease
except (a) the amounts to be paid pursuant to the State Loan Documents, (b) any common area
maintenance fee or rent or similar charge under the Facility Lease and (b) $3,125 per month.

     “Event of Default” and “Events of Default” shall have the meanings given to such terms in
Section 8.1 hereof.

     “Facility” means the Land and the Building.

     “Facility Lease” means the Lease Agreement dated as of December 1, 1997, between the Issuer
and the Lessee, pursuant to which the Issuer leases the Facility to the Lessee, together with any
and all Supplements thereto.

3

 

     “Fixed Rate”, “Fixed Rate Date” and “Fixed Rate Period” each has the meaning given to that
term by the Indenture.

     “Government Acts” shall have the meaning given to such term in Section 7.2 hereof.

     “Improvements” has the meaning given to that term in the granting clauses of the Deed of
Trust.

     “Indenture” means the Trust Indenture dated as of December 1, 1997, between the Issuer and the
Trustee, together with any and all Supplements thereto.

     “Individual Trustees” means the individual trustees acting as trustees under the Deed of
Trust, or their successors in trust who may be acting under and pursuant to the Deed of Trust from
time to time.

     “Interest Drawing” has the meaning given to that term by the Letter of Credit.

     “Interest Payment Date” has the meaning given to that term by the Indenture.

     “Issuer” means Maryland Economic Development Corporation, a body politic and corporate and a
public instrumentality of the State, its successors and assigns.

     “Issuer’s Bond Obligations” means the limited obligations of the Issuer under the Bond
Documents to (a) pay solely from the Trust Estate the principal of, premium (if any) and interest
on, and purchase price of, the Bonds as required by Section 7.2 of the Indenture, when and as the
same become due and payable (whether at the stated maturity thereof, or by acceleration of maturity
or after notice of redemption or prepayment or otherwise), (b) pay from the sources described in
Section 4.4 of the Indenture the purchase price of Bonds Tendered or Deemed Tendered for Purchase,
(c) pay solely from Eligible Lease Payments all other payments required by the Bond Documents to be
paid by the Issuer to the Trustee or to others, when and as the same shall become due and payable,
and (d) timely perform, observe and comply with all of the terms, covenants, conditions,
stipulations, and agreements, express or implied, which the Issuer is required by the Bond
Documents to perform or observe.

     “Issuer’s Letter of Credit Obligations” means the limited obligations of the Issuer under the
Letter of Credit Documents to pay all payments required by the Letter of Credit Documents, when and
as the same become due and payable, and timely perform, observe and comply with all terms,
covenants, conditions, stipulations and agreements, express or implied, which the Issuer is
required by the Letter of Credit Documents to observe or perform. The “Issuer’s Letter of Credit
Obligations” constitute “Issuer’s Credit Facility Obligations” (as defined in the Indenture).

     “Land” means the 10-acre (approximate) tract of land located in Montgomery County, Maryland,
and more particularly described in Exhibit A attached to the Deed of Trust and made a part thereof,
together with any and all improvements thereon.

     “Lessee” means Human Genome Sciences, Inc., a Delaware corporation, its successors and
assigns.

4

 

     “Letter of Credit” means the Irrevocable Transferable Letter of Credit No. SB-901483-0101
issued by the Bank’s predecessor in interest, Allfirst, to secure the Bonds and dated December 31,
1997. Any extension, amendment or renewal of or substitution issued by the Bank for Letter of
Credit No. SB-901483-0101 shall, without any action on the part of the Issuer, the Trustee or the
Bank, be deemed an amendment to Exhibit A to the Letter of Credit Agreement and shall be deemed a
part of Letter of Credit No. SB-901483-0101 as herein described.

     “Letter of Credit Agreement” means the Amended and Restated Letter of Credit Agreement of even
date herewith between the Issuer and the Bank, together with any and all Supplements thereto.

     “Letter of Credit Documents” means the Letter of Credit, the Letter of Credit Agreement, the
Deed of Trust, the Pledge and Security Agreement, the Pledged Bonds Custody Agreement, the Facility
Lease, the Assignment of Leases, the Swap Agreement, the Standstill Agreement, and any and all
other documents which the Issuer or any other party or parties or their representatives, have
executed and delivered, or may hereafter execute and deliver, to evidence or secure the Issuer’s
Letter of Credit Obligations, or any part thereof, or in connection therewith, together with any
and all Supplements thereto. The “Letter of Credit Documents” constitute “Credit Facility
Documents” (as defined in the Indenture).

     “LIBOR Rate” means the fluctuating annual rate of interest which shall at all times equal the
interest rate which the Bank announces and declares from time to time to be its one (1) month
London Interbank Offered Rate, adjusted for any Federal Reserve Board requirements imposed on the
Bank from time to time. All interest at the LIBOR Rate or computed thereon shall be calculated on
the basis of a 360 day-year factor applied to actual days elapsed and shall be adjusted on any date
on which a change occurs in the LIBOR Rate.

     “Mandatory Tender Date” and “Mandatory Tender Notice” each has the meaning given to that term
by the Indenture.

     “Outstanding”, “outstanding” or “Bonds Outstanding” has the meaning given to that term by the
Indenture.

     “Owner” or “Owners” or “Owner of Bonds” or “Owners of Bonds” means the person or persons in
whose name any Bond is registered on the books of the Issuer maintained by the Registrar.

     “Paying Agent” means the Trustee, or any successor Paying Agent appointed under the Indenture.

     “Penalty Rate” means the fluctuating rate per annum which is at all times equal to the
Reimbursement Rate plus 2% per annum.

     “Permitted Encumbrances” has the meaning given to that term by the Deed of Trust.

     “Person” or “person” means any natural person, firm, association, corporation, company, trust,
partnership, public body or other entity.

5

 

     “Placement and Remarketing Agreement” means (a) the Placement and Remarketing Agreement dated
as of December 1, 1997, by and between the Remarketing Agent and the Issuer, together with any and
all Supplements thereto, and (b) any other Remarketing Agreement or similar agreement by and
between the Remarketing Agent and the Issuer, pursuant to which the Remarketing Agent agrees to use
its best efforts to remarket and sell Bonds Tendered or Deemed Tendered for Purchase, together with
any and all Supplements thereto.

     “Pledge and Security Agreement” means (a) the Pledge and Security Agreement dated as of
December 1, 1997, by and between the Issuer and the Bank, together with any and all Supplements
thereto, and (b) any other pledge and security agreement or similar agreement between the Issuer
and the Credit Facility Provider pursuant to which Pledged Bonds are pledged as security for the
Issuer’s Credit Facility Obligations, together with any and all Supplements thereto.

     “Pledged Bonds” means Bonds that, subsequent to a Bond Purchase Principal Drawing, are
delivered to and held by the Pledged Bonds Custodian as security for the Issuer’s Letter of Credit
Obligations and registered as directed by the Bank.

     “Pledged Bonds Custodian” means Manufacturers and Traders Trust Company, as agent for the Bank
under the Pledged Bonds Custody Agreement, or any successor custodian of the Pledged Bonds acting
as the Bank’s agent.

     “Pledged Bonds Custody Agreement” means the Pledged Bonds Custody Agreement dated as of
December 1, 1997, by and between the Bank and the Pledged Bonds Custodian, together with any and
all Supplements thereto.

     “Principal Drawing” has the meaning given to that term by the Letter of Credit.

     “Principal Office” means, with respect to the Trustee, the Registrar, the Paying Agent, the
Remarketing Agent, or the Bank, the office designated as such, from time to time, by the respective
party in writing to the Issuer, the Trustee, the Paying Agent, the Registrar, the Remarketing
Agent, and the Bank.

     “Property” means the Land, the Improvements, and all other items of property included in the
term “Property” as used and defined in the granting clauses of the Deed of Trust.

     “Registrar” or “Bond Registrar” means the Trustee, or any successor Registrar appointed under
the Indenture.

     “Reimbursement Rate” means the fluctuating rate of interest which is at all times equal to the
LIBOR Rate plus 1% per annum.

     “Remarketing Agent” means Manufacturers and Traders Trust Company, or any successor
Remarketing Agent appointed under the Indenture.

     “Sinking Fund Installment” and “Sinking Fund Installment Date” each has the meaning given to
that term by the Indenture.

6

 

     “Standstill Agreement” means the Amended and Restated Standstill and Subordination Agreement
of even date herewith among the Bank and the Maryland Department of Business and Economic
Development, together with any and all Supplements thereto.

     “State” means the State of Maryland.

     “Supplement” or “Supplements” means any and all extensions, renewals, modifications,
amendments, supplements and substitutions.

     “Swap Agreement” means, collectively, any ISDA Master Agreement and attached Schedules
executed and delivered at any time and from time to time whether before or on or after the date
hereof by the Issuer and the Bank, and any and all other documents relating to such Master
Agreement, and any and all replacements of or substitutions for such Master Agreement or such other
documents, as any such Master Agreement and other documents with attached Schedules or any such
replacement or substitution thereof may at any time or from time to time be amended, restated,
supplemented or otherwise modified.

     “Swap Obligations” means and includes all present and future indebtedness, obligations and
liabilities of the Issuer to the Bank of any nature whatsoever under or in connection with the Swap
Agreement, whether such indebtedness, obligations and liabilities are direct or indirect, secured
or unsecured, joint or several, absolute or contingent, due or to become due, or now existing or
hereafter arising. The Swap Obligations constitute part of the Issuer’s Letter of Credit
Obligations.

     “Taxes” means all taxes, water rents, sewer rents, assessments and other governmental or
municipal or public or private dues, charges and levies and any prior liens (including federal tax
liens) for the Taxes which are or may be levied, imposed or assessed upon the Property or any part
thereof, or any leases pertaining thereto, or upon the rents, issues, income or profits thereof,
whether any or all of the aforementioned be levied directly or indirectly or as excise taxes or as
income taxes.

     “Trust Estate” has the meaning given to that term by the Indenture.

     “Trustee” means Manufacturers and Traders Trust Company, a New York banking corporation having
its Principal Office in Baltimore, Maryland, and its successor or successors in the trust created
by the Indenture.

     “Variable Rate” has the meaning given to that term by the Indenture.

     “1999 Bond Documents” means the Bond Documents as defined in the 1999 Indenture, together with
any and all Supplements thereto.

     “1999 Bonds” means, collectively, (a) the $4,375,000 Maryland Economic Development Corporation
Taxable Variable Rate Demand/Fixed Rate Revenue Bonds (Human Genome Sciences, Inc. Facility),
Series 1999 A and (b) the $13,125,000 Maryland Economic Development Corporation Taxable Variable
Rate Demand/Fixed Rate Revenue Bonds (Human Genome Sciences, Inc. Facility, Series 1999 B.

7

 

     “1999 Indenture” means the Amended and Restated Trust Indenture of even date herewith between
the Issuer and the Trustee, together with any and all Supplements.

     “1999 Letter of Credit Documents” means the Letter of Credit Documents as defined in the 1999
Indenture, together with any and all Supplements thereto.

ACCOUNTING TERMS

     Unless specifically provided otherwise, all accounting terms have the definitions given them
in accordance with generally accepted accounting principles as applied to the applicable person on
a consistent basis by its accountants in the preparation of its previous annual financial
statements.

     Section 1.2 Rules of Construction. The words “hereof”, “herein”, “hereunder”,
“hereto”, and other words of similar import refer to this Reimbursement Agreement in its entirety.

     The terms “agree” and “agreements” contained herein are intended to include and mean
“covenant” and “covenants”.

     References to Articles, Sections, and other subdivisions of this Reimbursement Agreement are
to the designated Articles, Sections, and other subdivisions of this Reimbursement Agreement as
originally executed.

     The headings of this Reimbursement Agreement are for convenience only and shall not define or
limit the provisions hereof.

     All references made (a) in the neuter, masculine or feminine gender shall be deemed to have
been made in all such genders, and (b) in the singular or plural number shall be deemed to have
been made, respectively, in the plural or singular number as well.

ARTICLE II

EFFECTIVE DATE OF REIMBURSEMENT AGREEMENT;

DURATION OF TERM

     Section 2.1 Effective Date of Reimbursement Agreement; Duration of Term. This
Reimbursement Agreement shall become effective on the date hereof and shall continue in full force
and effect until (a) the Letter of Credit has expired as therein provided, and (b) all of
the Lessee’s obligations under this Reimbursement Agreement have been fully performed and
satisfied.

     In the event that an Act of Bankruptcy has occurred on or prior to the satisfaction of the
conditions specified in the immediately preceding paragraph, then this Reimbursement Agreement
shall continue in full force and effect, and shall not expire, until (a) the Letter of Credit has
expired in accordance with its terms, (b) all of the Lessee’s obligations hereunder have been fully
performed and satisfied, and (c) either (i) a final order has been issued, holding that the
Bank is not required to return any funds it has received from the Issuer or the Lessee, or

8

 

(ii) all statutes of limitation for all causes of action under Chapter 5 of the Bankruptcy
Code have expired.

ARTICLE III

PAYMENT PROVISIONS

     Section 3.1 Reimbursement and Other Payments. In consideration for the Bank’s
agreement to extend the Letter of Credit, the Lessee hereby unconditionally acknowledges and
agrees, for the benefit of the Bank, to pay and perform all of the Issuer’s Letter of Credit
Obligations, including, without limitation, the Issuer’s obligation to reimburse the Bank for all
amounts drawn under the Letter of Credit and all other amounts advanced or paid by the Bank, plus
all expenses, indemnities and other amounts payable to or for the benefit of the Bank under the
Letter of Credit Agreement, as and when the same shall become due and payable, provided however,
that all such obligations shall be payable by the Lessee on a full recourse basis without regard to
Section 14.15 of the Letter of Credit Agreement, and all of the obligations of the Lessee under
this Reimbursement Agreement, and such obligations of the Lessee shall include, without limitation,
the Lessee’s unconditional promise to pay to the Bank:

          (a) immediately on demand by the Bank, a sum equal to (i) any amount drawn under, or paid by
the Bank in good faith under, the Letter of Credit pursuant to a Bond Purchase Principal Drawing,
plus (ii) interest on such amount as provided in paragraph (j) below;

          (b) immediately and no later than 5:00 p.m. (without the necessity of any demand by or notice
from the Bank) on each date that the Bank pays any amount drawn under, or paid by the Bank in good
faith under, the Letter of Credit pursuant to a Principal Drawing or an Interest Drawing or an
Acceleration Drawing, a sum equal to (i) such amount so drawn under, or paid by the Bank in good
faith under, the Letter of Credit pursuant to a Principal Drawing or an Interest Drawing or an
Acceleration Drawing, plus (ii) interest on such amount as provided in paragraph (j) below;

          (c) immediately on demand by the Bank, any amount drawn under, or paid by the Bank in good
faith under, the Letter of Credit pursuant to a Bond Purchase Interest Drawing, a sum equal to (i)
such amount so drawn under, or paid by the Bank in good faith under, the Letter of Credit pursuant
to a Bond Purchase Interest Drawing, plus (ii) interest on such amount as provided in paragraph (j)
below

          (d) immediately on demand by the Bank, a sum equal to (i) any and all reasonable charges and
expenses (excluding the Bank’s internal overhead) which the Bank may pay or incur relative to the
payment of any draft drawn under, or paid by the Bank in good faith under, the Letter of Credit or
in connection with any amendment or extension of or substitution for or renewal of the Letter of
Credit, plus (ii) interest thereon as provided in paragraph (j) below;

          (e) immediately on demand by the Bank, a sum equal to (i) the amount advanced or paid by the
Bank pursuant to the provisions of Section 4.7 or Section 14.9 of the Letter of
Credit Agreement, plus (ii) interest on such amount as provided in paragraph (j) below,

9

 

plus (iii) any and all reasonable charges and expenses which the Bank may pay or incur
relative to such payment;

          (f) immediately (without the necessity of any demand by or notice from the Bank) as and when
due and payable, the Letter of Credit Fee and the Negotiation Fee as set forth in Section
4.1 of the Letter of Credit Agreement (including any additional amounts required by Section
5.4 of the Letter of Credit Agreement), plus interest thereon as provided in paragraph (j)
below;

          (g) immediately on demand by the Bank, any and all expenses incurred by the Bank in enforcing
any rights under the Letter of Credit Agreement or this Reimbursement Agreement plus interest
thereon as provided in paragraph (j) below;

          (h) immediately on demand by the Bank, all other costs and expenses of the Bank, as set forth
in the Letter of Credit Agreement (including, without limitation, all costs and expenses payable
pursuant to Section 4.6 of the Letter of Credit Agreement) plus interest thereon as
provided in paragraph (j) below;

          (i) immediately on demand by the Bank upon any transfer of the Letter of Credit, the transfer
charge payable to the Bank pursuant to the Letter of Credit ($750) plus interest thereon as
provided in paragraph (j) below (a “transfer” of the Letter of Credit means the designation of a
new beneficiary thereunder as a substitute Trustee under the Indenture); and

          (j) immediately on demand by the Bank, interest on any and all amounts and sums payable by the
Lessee under this Reimbursement Agreement at any time (including, without limitation, any and all
amounts or sums described or referred to in paragraphs (a) through (i) above), such interest being
payable from the date such amounts and sums become due until the Bank actually receives payment
thereof in full, at the Reimbursement Rate. Interest on any amounts advanced or paid by the Bank
or any costs, charges and expenses incurred by the Bank shall be due and payable from the date such
amounts are advanced or costs are incurred or paid by the Bank until the Bank actually receives
payment thereof in full at the Reimbursement Rate; provided, however, notwithstanding the foregoing
provisions of this paragraph, interest on the amounts due pursuant to paragraphs (d), (f) and (h)
shall not be due and payable until 15 days after notice to the Lessee of the amounts due.

     The Bank and the Lessee contemplate that pursuant to the Indenture, the amounts paid by the
Bank under the Letter of Credit pursuant to a Principal Drawing or an Interest Drawing or a Bond
Purchase Interest Drawing, will, in the ordinary course, be repaid directly to the Bank by the
Trustee from certain payments made to the Issuer by the Lessee pursuant to the Facility Lease,
which payments are to be deposited by the Trustee in the Bond Fund. The Lessee shall not, however,
be relieved of liability for repaying any such amounts (plus interest thereon, at the Reimbursement
Rate, from the date such amounts are paid by the Bank under the Letter of Credit) to the Bank by
reason of any action or inaction on the part of the Trustee or any other person which results in a
failure by the Bank to actually receive such amounts from the Trustee pursuant to the Indenture or
results in any delay in the receipt by the Bank of such amount from the Trustee pursuant to the
Indenture.

10

 

     All amounts paid by the Bank under the Letter of Credit shall bear interest from the date such
amounts are paid by the Bank until such time as such amounts are actually repaid to the Bank.

     In connection with the foregoing, the Lessee acknowledges and agrees as follows: (a) the
Issuer shall apply any and all amounts which it receives in respect to the principal of and
interest on the Pledged Bonds to the repayment of amounts from time to time owing to the Bank under
the Letter of Credit Agreement; and (b) notwithstanding any other terms and provisions of any of
the Letter of Credit Documents, the amounts set forth hereinabove shall be due and payable in full
by the Lessee at the time indicated, regardless of whether or not the Bank (or the Pledged Bonds
Custodian, for the account of the Bank) is then holding any Pledged Bonds as a result of any Bond
Purchase Principal Drawing and regardless of whether or not the Bank (in its sole discretion) has
theretofore extended the time for payment of any amounts payable by the Lessee hereunder.

     Notwithstanding anything to the contrary set forth in this Section, following the date on
which the Bank honors a Bond Purchase Principal Drawing, the Bank will not make demand for the
payment of the amounts payable under paragraph (a) above in connection with such Bond Purchase
Principal Drawing, so long as (1) within 48 hours after the Bank honors such Bond Purchase
Principal Drawing (or such longer period of time not to exceed five Business Days if the Trustee
advises the Bank that the delay is caused by administrative difficulties), the Pledged Bonds
Custodian receives an aggregate principal amount of Bonds equal to the amount of such Bond Purchase
Principal Drawing, registered by the Trustee in the Issuer’s name, as owner, and in the Bank’s
name, as pledgee, (2) the Bank actually receives all payments of the principal of and interest on
such Bonds, when due, (3) no Event of Default shall have occurred and be continuing, and (4) the
Letter of Credit shall not have expired. On the date of the expiration of the Letter of Credit,
all amounts payable under paragraph (a) above in connection with such Bond Purchase Principal
Drawing which shall not have been repaid, together with all accrued and unpaid interest thereon,
shall become immediately due and payable, without the necessity of any demand by or notice from the
Bank; provided, however, if such Bond Purchase Principal Drawing is the result of a Downgrade, all
amounts payable in connection with such Bond Purchase Principal Drawing which shall not have been
repaid, together with all accrued and unpaid interest thereon, shall become immediately due and
payable, without demand or notice from the Bank, on the day which is 180 days following the date on
which the Bank honors such Bond Purchase Principal Drawing.

     Section 3.2 Payments due Upon Expiration of Letter of Credit. On the date on which
the Letter of Credit expires, all amounts described in Section 3.1 above, and all other amounts
owed to the Bank hereunder, together with all accrued and unpaid interest thereon, shall become
immediately due and payable, without the necessity of any demand or notice from the Bank.

     Section 3.3 Late Payments. In the event any payment required to be made by the Lessee
in accordance with the provisions of Section 3.1 or Section 3.2 hereof or in accordance with any
other provision of this Reimbursement Agreement is not paid within 15 days from the date on which
the same is due and payable, such payment in default shall continue as an obligation of the Lessee,
and such payment in default and the entire unpaid balance of all amounts owing hereunder shall bear
interest, from the date on which the payment was due until

11

 

such payment in default is paid in full, at the fluctuating rate which is at all times equal
to the Penalty Rate. In addition, the Lessee shall pay (a) a late charge in an amount equal to 2%
of the amount of any payment which is made more than 15 days after the date on which the same is
due and payable (except for any payment with respect to a Bond Purchase Principal Drawing), and (b)
all costs of collection, including reasonable attorneys’ fees, if this Reimbursement Agreement is
referred to an attorney for collection after default by the Issuer.

     Section 3.4 Increased Costs Due to Change in Law. If any change in any law,
regulation or official directive of any international, federal, state or local governmental
authority (whether or not having the force of law) or in the interpretation thereof by any court or
administrative agency or compliance by the Bank with any lawful request, law, regulation or
directive from any applicable fiscal or monetary authority (whether or not having the force of law)
shall either:

          (a) impose, modify or render applicable any reserve, special deposit or similar requirement
against letters of credit issued by the Bank or require the inclusion of such letters of credit in
any analysis of minimum capital requirements or capital adequacy; or

          (b) subject the Bank to any tax with respect to such letters of credit or any amount payable
under the Letter of Credit Agreement (other than a tax on the overall net income of the Bank)
imposed by the United States of America or the State; or

          (c) impose on the Bank any other condition regarding the Letter of Credit Agreement or the
Letter of Credit, and the result of any such event shall be:

          (i) to increase the cost to the Bank of issuing or maintaining the Letter of Credit or
any renewal thereof or of making, funding or maintaining the whole or any part of any unpaid
drawing under the Letter of Credit (which increase in cost shall be determined by the Bank’s
reasonable allocation of the aggregate of such cost increases resulting from such events);
or

          (ii) to reduce the amount of any sum received or receivable by the Bank under the
Letter of Credit Agreement or to require the Bank to make any payment or forego any
interest; or

          (iii) to reduce the rate of return on the Bank’s capital as a result of issuing or
maintaining the Letter of Credit and/or any renewals thereof (which reduction shall be
determined by the Bank taking into consideration the Bank’s policies concerning capital
adequacy),

then and in each such case, within five (5) days following the Lessee’s receipt of demand therefor
from the Bank, the Lessee shall pay to the Bank, from time to time as specified by the Bank,
additional amounts which shall be sufficient to compensate the Bank for such increased cost,
reduction, payment or foregone interest, together with interest on each such amount from the date
demanded until payment in full thereof at the Reimbursement Rate. A certificate as to each such
increased cost, reduction, payment or foregone interest as a result of any such event, submitted in
good faith by the Bank to the Lessee, shall be conclusive evidence of such

12

 

additional amounts to be paid by the Lessee and the basis therefor, absent manifest error as to the
amount thereof.

     Section 3.5 Computation. All payments of interest and other charges under this
Reimbursement Agreement shall be computed on the basis of a 360-day year factor applied to the
actual number of days elapsed. The rate of interest shall be adjusted on any day on which a change
occurs in the LIBOR Rate.

     Section 3.6 Payment Procedure. All payments made by the Lessee under this
Reimbursement Agreement shall be made to the Bank in lawful money of the United States of America
at the time of payment and in immediately available funds at the Bank’s offices at 25 South Charles
Street, Baltimore, Maryland 21201, before 12:00 noon, prevailing Baltimore, Maryland time on the
date when due.

     Section 3.7 Business Days. If the date for any payment hereunder is a day which is
not a Business Day, then for all purposes of this Reimbursement Agreement the payment then due
shall be made on the next following Business Day, and such extension of time shall in each case be
included in any computation of payments of interest.

ARTICLE IV

UNCONDITIONAL OBLIGATIONS

     Section 4.1 Obligations Absolute. The obligations of the Lessee under this
Reimbursement Agreement shall be paid strictly in accordance with the terms of this Reimbursement
Agreement, under any and all circumstances whatsoever; including, without limitation, the following
circumstances: (a) any invalidity or unenforceability of the Letter of Credit, the Letter of Credit
Agreement or any other agreement or instrument related thereto; (b) any amendment or waiver of, or
any consent to or departure from, the terms of the Letter of Credit, the Letter of Credit Agreement
or any other agreement or instrument related thereto; (c) the existence of any claim, set-off,
defense or other right which the Lessee may have at any time against any beneficiary or any
transferee of the Letter of Credit (or any person for whom the Lessee, any such beneficiary or any
such transferee may be acting), the Bank or any other Person, whether in connection with this
Reimbursement Agreement or any unrelated transaction; (d) any statement or any other document
presented under the Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect, or any statement therein being untrue or inaccurate in any respect whatsoever; (e)
payment by the Bank under the Letter of Credit against presentation of a sight draft or certificate
which substantially complies with the terms of the Letter of Credit; (f) the surrender or
impairment of any security for the performance or observance of any of the agreements or terms of
the Letter of Credit Agreement or this Reimbursement Agreement; or (g) any other circumstance,
happening or omission whatsoever, whether or not similar to any of the foregoing. The Lessee
understands and agrees that no payment under any other agreement will release it from liability
hereunder unless the Bank has been indefeasibly paid in full.

13

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     Section 5.1 Representations, Warranties and Undertakings. The Lessee makes the
following representations and warranties to induce the Bank to enter into this Reimbursement
Agreement, to enter into the Letter of Credit Agreement and to extend the Letter of Credit:

          (a) Authority. The Lessee is a corporation duly organized and validly existing under
the laws of the State of Delaware. The Lessee has the power to enter into this Reimbursement
Agreement and the transactions contemplated hereunder and to carry out its obligations hereunder.
By proper action, the Lessee has duly authorized the execution and delivery of this Reimbursement
Agreement.

          (b) Binding Agreements. This Reimbursement Agreement and the Letter of Credit
Documents to which the Lessee is a party have been duly and properly authorized, executed, sealed
and delivered by the Lessee, constitutes valid and legally binding obligations of the Lessee, and
is fully enforceable against the Lessee in accordance with their respective terms; provided,
however, that the enforceability and binding nature of this Reimbursement Agreement and the Letter
of Credit Documents to which the Lessee is a party are subject to bankruptcy, insolvency,
reorganization and other state and federal laws affecting the enforcement of creditors’ rights
generally, and, to the extent that certain remedies under such instruments require, or may require,
enforcement by a court of equity, such principles of equity as the court having jurisdiction may
impose.

          (c) Litigation. There are no proceedings pending or, to the knowledge of the Lessee,
threatened in writing before any court or administrative agency which may affect the authority of
the Lessee to enter into this Reimbursement Agreement or the Letter of Credit Documents to which
the Lessee is a party.

          (d) No Conflicting Agreements, Laws, etc. The execution, delivery and performance by
the Lessee of this Reimbursement Agreement and the Letter of Credit Documents to which the Lessee
is a party, or any other document required to be delivered hereby by the Lessee, do not constitute
a violation or breach of or a default under the Bylaws of the Lessee or any existing mortgage,
indenture, contract, instrument or agreement binding on the Lessee or affecting its property, or
any provision of law or order of any court binding upon the Lessee.

          (e) Liens or Security Interests. Except for liens being granted to the Bank, there
exist no liens or security interests on or with respect to the Property (other than Permitted
Encumbrances) or with respect to any security provided by the Lessee to the Bank for the Lessee’s
obligations under this Reimbursement Agreement.

          (f) Full Disclosure. All information heretofore furnished by the Lessee to the Bank
in writing for purposes of or in connection with this Reimbursement Agreement or any transaction
contemplated hereby is, and all such information hereafter furnished by the Lessee to

14

 

the Bank will be, true and accurate in all material respects on the date as of which such
information is stated or certified.

ARTICLE VI

AFFIRMATIVE COVENANTS OF LESSEE

     Section 6.1 Affirmative Covenants of Lessee. Until the termination of this
Reimbursement Agreement, unless the prior written consent to do otherwise is obtained from the
Bank, the Lessee will:

          (a) Financial Statements. Furnish or cause to be furnished to the Bank the following:

     (i) as soon as available but in no event more than forty-five (45) days after filing
with the Securities and Exchange Commission (the “SEC”), a copy of the 10Q Report of the
Lessee filed with the SEC accompanied by a certificate of the chief financial officer of the
Lessee stating whether any event has occurred which constitutes an Event of Default, or
which would constitute such an Event of Default with the giving of notice or the lapse of
time or both, and, if so, stating the facts with respect thereto; and

     (ii) as soon as available but in no event more that one hundred twenty (120) days after
the close of each fiscal year of the Lessee, a copy of the 10K Report of the Lessee filed
with the SEC and a copy of the annual audited financial statements relating to the Lessee
prepared in accordance with GAAP, which financial statements shall include a balance sheet
of the Lessee as at the end of such fiscal year and a statement of earnings and changes in
stockholder’s equity of the Lessee for such fiscal year; and

     (iii) promptly upon transmission thereof, copies of any financial statements, proxy
statements, reports and the like which the Lessee sends to its shareholders and copies of
all registration statements (with exhibits); and

     (iv) with reasonable promptness, such budgets, cash flow projections, financial
forecasts and other additional information, reports or statements as the Bank may from time
to time reasonably request concerning the Lessee, the Property or any other matter related
to the transactions that are the subject of this Reimbursement Agreement.

          (b) Taxes and Claims. Pay and discharge or cause to be paid and discharged all Taxes
imposed upon the Property or any income derived therefrom prior to the date on which penalties
attach thereto, and all lawful claims which, if unpaid, might become a lien or charge upon the
property. The Lessee shall have the right to contest the validity of any such tax, assessment,
charge, levy or claim, by timely and appropriate proceedings, provided that the Lessee shall (a)
give the Bank written notice of its intention to contest, (b) diligently prosecute such contest,
(c) at all times effectively stay or prevent any official or judicial sale of the Property or any
part thereof by reason of nonpayment of any such taxes, and (d) establish reasonable reserves for
such liabilities being contested if the Bank reasonably determines such reserves to be necessary.

15

 

          (c) Compliance with Laws. Comply with all applicable federal, State and local laws,
rules and regulations, subject to the Lessee’s right to contest the validity or applicability of
any of the foregoing, at its sole cost and expense, in good faith and by appropriate and diligent
proceedings.

          (d) Books and Records. Maintain appropriate books and records with respect to the
Property and permit access by the Bank and its authorized representatives and employees to the
books and records of the Lessee at the offices of the Lessee during normal business hours.

ARTICLE VII

INDEMNIFICATION

     Section 7.1 Indemnification of Bank. To the extent permitted by law, in addition to
all amounts payable hereunder, the Lessee shall protect, indemnify, and save harmless the Bank and
its officers, employees and agents against and from any and all liabilities, suits, actions,
claims, demands, losses, expenses and costs of every kind and nature incurred by, or asserted or
imposed against, the Bank and its officers, employees or agents, by reason of (a) any accident,
injury (including death) or damage to any person or property, however caused (other than the gross
negligence or willful misconduct of the Bank), resulting from, connected with or growing out of any
act of commission or omission of the Lessee, or any officers, employees, agents, assignees,
contractors or subcontractors of the Lessee or any use, non-use, possession, occupation, condition,
operation, service, design, construction, acquisition, maintenance or management of, or on, or in
connection with, the Property, or any part thereof; (b) federal and state securities laws,
including, without limitation, any failure to register the Bonds, the Letter of Credit or any other
“separate security” under federal or state securities laws; (c) solely with respect to information
about the Lessee provided by the Lessee, any untrue statement of a material fact or any omission to
state a material fact necessary in order to make any statements made, in light of the circumstances
under which they were made, not misleading in connection with the sale of the Bonds (other than as
a result of the gross negligence or willful misconduct of the Bank); and, in any such case,
regardless of whether such liabilities, suits, actions, claims, demands, damages, losses, expenses
and costs be against, or be suffered or sustained by, the Bank or its officers, agents or
employees, or be against, or be suffered or sustained by, legal entities, officers, agents, or
other persons to whom the Bank or its officers, agents or employees, become liable therefor. The
Lessee may, and if so requested by the Bank shall, undertake to defend, at its sole cost and
expense, any and all suits, actions and proceedings brought against the Bank or its officers,
agents or employees in connection with any of the matters indemnified against in this Section. The
Bank agrees to give the Lessee timely notice of and shall forward to the Lessee every demand,
notice, summons or other process received with respect to any claim or legal proceedings within the
purview hereof, but the failure of the Bank to give such notice shall not affect its right to
indemnification hereunder, unless such failure shall have deprived the Lessee of a reasonable
opportunity to contest any such claim or legal proceeding.

     If the indemnification provided for herein is held by a court to be unavailable or is
insufficient to hold the Bank harmless in respect of any losses, claims, damages or liabilities (or
actions in respect thereof), then the Lessee shall contribute to the amount paid or payable by the
Bank as a result of the losses, claims, damages or liabilities (or actions in respect thereof)
(except

16

 

those caused by the gross negligence or willful misconduct of the Bank) in such proportion as
is appropriate to reflect the relative fault of the Lessee on the one hand and the Bank on the
other hand, as well as any other relevant equitable considerations.

     Section 7.2 Indemnification Under Letter of Credit and Letter of Credit Agreement. In
addition to all amounts payable hereunder and to the extent permitted by law, the Lessee hereby
protects, indemnifies and holds harmless the Bank from and against, and hereby agrees to defend the
Bank against, any and all claims, damages, losses, liabilities, costs or expenses whatsoever which
the Bank may, at any time, sustain or incur by reason of or in consequence of or arising out of the
issuance of the Letter of Credit; it being the intention of the parties that this Reimbursement
Agreement shall be construed and applied to protect and indemnify the Bank against any and all
risks involved in the issuance of the Letter of Credit all of which risks are hereby assumed by the
Lessee, including, without limitation, any and all risks of the acts or omissions, whether rightful
or wrongful, of any present or future de jure or de facto government or governmental authority (all
such acts or omissions, herein called “Government Acts”). Notwithstanding anything to the contrary
herein contained, the Lessee shall have no obligation to indemnify the Bank from and against any
liability incurred by the Bank arising solely out of the gross negligence or willful misconduct of
the Bank. The Bank shall not, in any way, be liable for any failure by the Bank or anyone else to
pay any drawing under the Letter of Credit as a result of any Government Acts or any other cause
beyond the control of the Bank. Nothing in this Section 7.2 is intended to limit the Issuer’s
reimbursement obligations contained in Article V hereof.

     The provisions of this Article shall survive the expiration of the Letter of Credit and the
termination of the Bond Documents and the Letter of Credit Documents.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

     Section 8.1 Events of Default Defined. The following shall be “Events of Default”
under this Reimbursement Agreement, and the term “Event of Default” shall mean, whenever it is used
in this Reimbursement Agreement, any one or more of the following events:

          (a) Any representation or warranty made herein or any statement or representation made in any
certificate, report or opinion (including legal opinions), financial statement or other instrument
furnished by the Lessee in connection with this Reimbursement Agreement, the Letter of Credit or
the Letter of Credit Agreement, proves to have been incorrect, false or misleading in any material
respect when made; or

          (b) The Lessee fails to pay, on the date on which the same is due and payable as herein
provided, (i) any payment required by Article III hereof, or (ii) any other payment whatsoever
required by this Reimbursement Agreement to be paid by the Lessee; and any such failure is not
cured within 5 days after notice from the Bank to the Lessee; or

          (c) The Lessee fails to duly and promptly perform, comply with or observe any other term,
covenant, condition or agreement contained in this Reimbursement Agreement,

17

 

which failure remains unremedied for 30 days after written notice thereof shall have been
given to the Lessee by the Bank; provided, however, if such failure be such that it cannot be
corrected within 30 days, it shall not be an Event of Default if, in the reasonable opinion of the
Bank, the Lessee is taking appropriate corrective action to cure the failure and if such failure
will not impair the ability of the Lessee to pay or perform the Lessee’s obligations under this
Reimbursement Agreement; or

          (d) An Act of Bankruptcy occurs with respect to the Lessee or the Lessee becomes generally
unable to pay its debts as they become due; provided, however, if a proceeding with respect to an
Act of Bankruptcy is filed or commenced against the Lessee, the same shall not constitute an Event
of Default if such proceeding is dismissed within 60 days from the date of such Act of Bankruptcy;
or

          (e) An “event of default” or “Event of Default” occurs under the Collateral Pledge Agreement,
any of the Bond Documents, any of the other Letter of Credit Documents, any of the 1999 Bond
Documents or any of the 1999 Letter of Credit Documents; or

          (f) Any execution or attachment is levied against the Lessee’s interest in the Property, or
any part thereof, and such execution or attachment is not set aside, discharged, bonded against, or
stayed within 30 days after the same is levied; or

          (g) Any change in any zoning ordinance or any other public restriction is enacted, limiting or
defining the uses which may be made of the Property or a part thereof, such that the existing use
of the Property, as specified in the Letter of Credit Documents, would not be permitted after such
restriction or zoning change; or

          (h) The Lessee fails to comply with any requirement of any governmental authority having
jurisdiction over the Property within the time required by such governmental authority; or any
proceeding is commenced or action taken to enforce any remedy for a violation of any requirement of
a governmental authority or any restrictive covenant affecting the Property or any part thereof;
provided, however, such failure shall not be an Event of Default if the Lessee is diligently
contesting such requirement in good faith; or

          (i) Any amendment to any of the Bond Documents or the Letter of Credit Documents shall have
been made without the prior written consent of the Bank; or

          (j) Notwithstanding the provisions of Section 9.5 hereof, if any material provision of this
Reimbursement Agreement at any time for any reason ceases to be valid and binding on the Lessee, or
is declared to be null and void, or the validity or enforceability thereof is contested by the
Lessee or any governmental agency or authority, or the Lessee denies that it has any or further
liability or obligation under this Reimbursement Agreement or any of the Bond Documents or the
Letter of Credit Documents; or

          (k) Within 48 hours following a Bond Purchase Principal Drawing (or such longer period of
time, not to exceed five Business Days, if the Trustee advises the Bank that the delay is caused by
administrative difficulties), the Trustee does not deliver, or cause to be delivered to the Pledged
Bonds Custodian an aggregate principal amount of Bonds equal to the

18

 

amount of the Bond Purchase Principal Drawing, registered in the name of the Bank, as pledgee;
or

          (l) Any mechanics’ liens are established against the Property and are not caused to be
discharged or bonded against by the Lessee within 30 days after it receives notice of the
establishment thereof; or

          (m) The Facility Lease is terminated for any reason prior to the expiration or termination of
the Letter of Credit or the full payment and performance of all of the Lessee’s obligations under
this Reimbursement Agreement; provided, however, such termination shall not constitute an Event of
Default if it is as a result of the Lessee’s exercise of its option to purchase the Property
pursuant to the Facility Lease; or

          (n) The Deed of Trust, after delivery thereof, except to the extent permitted by the terms
thereof, ceases to create a valid and perfected lien or security interest, as appropriate, of the
priority required thereby, on any of the property purported to be covered thereby, or the Issuer or
any other person liable for the Issuer’s Letter of Credit Obligations so states in writing.

     Section 8.2 Remedies on Default. Whenever any Event of Default referred to in Section
8.1 hereof occurs, the Bank may take any one or more of the following remedial steps:

          (a) The Bank, at its option, may (i) demand that the Trustee exercise its remedies under the
Indenture and accelerate the maturity of the Bonds (in which event the Trustee is required to
immediately draw under the Letter of Credit pursuant to Section 9.2(a) of the Indenture), and (ii)
declare all amounts payable under Article III hereof (including amounts payable as a result of a
drawing under the Letter of Credit as described in clause (i) above), together with all other
moneys payable hereunder, to be immediately due and payable, whereupon the same shall become
immediately due and payable, by written notice to that effect given to the Lessee, without protest,
presentment, or further notice or demand, all of which are expressly waived by the Lessee. Upon
such declaration by the Bank, payment of all amounts due under Article III hereof (including
amounts payable as a result of a drawing under the Letter of Credit as described in clause (i)
above) shall be made immediately by the Lessee, and the Lessee hereby promises to pay such amount
immediately, to the Bank. Upon payment in full of all of the Lessee’s obligations under this
Reimbursement Agreement, whether contingent or otherwise, but only upon the expiration of this
Reimbursement Agreement, any remaining surplus of such funds held by the Bank as a result of
payment pursuant to this Section 8.2(a) shall be applied first to pay any unpaid Administration
Expenses and any remainder shall be returned to the Lessee, unless otherwise agreed by the Lessee
and the Bank.

          (b) The Bank may take whatever action at law or in equity may appear necessary or desirable to
collect the payments and other amounts then due and thereafter to become due or to enforce
performance and observance of all of the Lessee’s obligations under this Reimbursement Agreement.

          (c) The Bank, with or without resort to judicial process, may take such steps as the Bank
deems appropriate to protect the Property from depredation or injury, including (without
limitation) employment of watchmen or other protective services, and any expenses

19

 

incurred by the Bank in taking such steps shall be paid by the Lessee to the Bank as provided
in Section 9.9 hereof.

          (d) The Bank may proceed under the Maryland Uniform Commercial Code (or under the Uniform
Commercial Code of any other jurisdiction in which any security for the Issuer’s Letter of Credit
Obligations may be located from time to time) as to all or any part of the security for the
Issuer’s Letter of Credit Obligations, and in conjunction therewith exercise all of the rights,
remedies and powers of a secured party under the Maryland Uniform Commercial Code (or under the
Uniform Commercial Code of any other jurisdiction in which any security for the Issuer’s Letter of
Credit Obligations may be located from time to time), including, without limitation, taking
possession of any security for the Lessee’s obligations under this Reimbursement Agreement without
judicial process pursuant to Section 9-609 of the Maryland Uniform Commercial Code. Upon the
occurrence of any Event of Default hereunder, the Lessee shall assemble all of the security for the
Lessee’s obligations under this Reimbursement Agreement, and make the same available to the Bank.
Any notification required by Section 9-611 of the Maryland Uniform Commercial Code shall be deemed
reasonably and properly given if mailed certified mail, return receipt requested, postage prepaid,
by the Bank to the Lessee at the address specified in Section 9.1 hereof at least 10 days before
any sale or other disposition of the security for the Lessee’s obligations under this Reimbursement
Agreement, or any portion thereof. Disposition of the security for the Lessee’s obligations under
this Reimbursement Agreement, or any portion thereof, shall be deemed commercially reasonable if
made pursuant to a public offering advertised at least twice in a newspaper of general circulation
in the community in which the Property is located.

          (e) The Bank may exercise any and all remedies available to it under the Collateral Pledge
Agreement, any of the Bond Documents and any of the Letter of Credit Documents.

     No action taken pursuant to this Section shall relieve the Lessee from any of the Lessee’s
obligations under this Reimbursement Agreement, all of which shall survive any such action, and the
Bank may take whatever action at law or in equity as may appear necessary and desirable to collect
the payments and other amounts then due and thereafter to become due or to enforce the performance
and observance of the Lessee’s obligations under this Reimbursement Agreement.

     Any amounts collected pursuant to action taken under this Section shall be paid over to the
Bank and applied to the Lessee’s obligations under this Reimbursement Agreement.

     Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
Bank is intended to be exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this
Reimbursement Agreement, the Collateral Pledge Agreement or any of the Letter of Credit Documents
or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise
any right or power accruing upon any default shall impair any such right or power or shall be
construed to be a waiver thereof, but any such right and power may be exercised from time to time
and as often as may be deemed expedient. In order to entitle the Bank to exercise any remedy
reserved to it in this Article, it shall not be necessary to give any notice, other than such
notice as may be herein expressly required.

20

 

     Section 8.4 Agreement to Pay Attorneys’ Fees and Expenses. In the event the Lessee
defaults under any of the provisions of this Reimbursement Agreement, and the Bank employs
attorneys or incurs other expenses for the collection of amounts due hereunder or the enforcement
of performance or observance of any obligation or agreement on the part of the Lessee herein
contained, the Lessee agrees that it will on demand therefor pay to the Bank the fees of such
attorneys and such other expenses so incurred by the Bank.

     Section 8.5 Waiver of Event of Default; No Additional Waiver Implied by One Waiver.
The Bank in its sole discretion may waive an Event of Default, provided that either (a) notice of
the occurrence of an Event of Default has not yet been given to the Trustee, or (b) following such
Event of Default, a drawing under the Letter of Credit is not required to be made by the Trustee in
accordance with Section 9.2 of the Indenture.

     In the event any agreement contained in this Reimbursement Agreement is breached by the Lessee
and thereafter waived (expressly or impliedly) by the Bank, such waiver shall be limited to the
particular breach so waived and shall not be deemed to waive any other breach hereunder. Any
forbearance (expressly or impliedly) by the Bank to demand payment for any amounts payable
hereunder shall be limited to the particular payment for which the Bank forebears demand for
payment and will not be deemed a forbearance to demand any other amount payable hereunder.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Notices. Except as otherwise provided in this Reimbursement Agreement,
all notices, demands, requests, consents, approvals, certificates or other communications required
under this Reimbursement Agreement to be in writing shall be sufficiently given and shall be deemed
to have been properly given (i) if delivered by hand, when written confirmation of delivery is
received by the sender, (ii) three days after the same is mailed by certified mail, postage
prepaid, return receipt requested, or (iii) if sent by overnight courier, 24 hours after delivery
to such overnight courier, addressed to the person to whom any such notice, demand, request,
approval, certificate or other communication is to be given, at the appropriate address for the
Principal Office of such person designated below:

	 	 	 
	Bank:

	 	Manufacturers and Traders Trust Company
	 

	 	25 South Charles Street, 11th Floor
	 

	 	Baltimore, Maryland 21201
	 

	 	Attention: Letter of Credit Department
	 
	 	 
	 

	 	and
	 
	 	 
	 

	 	Manufacturers and Traders Trust Company
	 

	 	1 Research Court, Suite 400
	 

	 	Rockville, Maryland 20850
	 

	 	Attention: Arthur L. Perraud

21

 

	 	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Nancy R. Little, Esquire
	 

	 	McGuireWoods LLP
	 

	 	One James Center
	 

	 	901 East Cary Street
	 

	 	Richmond, Virginia 23219
	 
	 	 
	Lessee:

	 	Human Genome Sciences, Inc.
	 

	 	14200 Shady Grove Road
	 

	 	Rockville, Maryland 20850
	 

	 	Attention: James H. Davis, Executive Vice President, General
	 

	 	Counsel and Secretary

Any person listed above may, by notice given hereunder, designate any further or different
addresses to which subsequent communications shall be sent. During any period in which the
Registrar and the Paying Agent are the same and have the same address, any notice required to be
given to either the Registrar or the Paying Agent, or both, may be given by one notice to the
address for the Registrar and Paying Agent set forth above.

     Section 9.2 [INTENTIONALLY OMITTED].

     Section 9.3 [INTENTIONALLY OMITTED].

     Section 9.4 Binding Effect. This Reimbursement Agreement shall inure to the benefit
of and shall be binding upon the Bank, the Lessee and their respective successors and assigns.

     Section 9.5 Illegality; Severability. If fulfillment of any provision hereof or any
transaction related hereto or to the Letter of Credit Documents, at the time performance of such
provisions shall be due, shall involve transcending the limit of validity prescribed by law, then
ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity; and if
any clause or provisions herein contained, operates or would prospectively operate to invalidate
this Reimbursement Agreement in whole or in part, then such clause or provision only shall be void,
as though not herein contained, and the remainder of this Reimbursement Agreement shall remain
operative and in full force and effect.

     Section 9.6 Assignment. None of the Letter of Credit Documents to which the Lessee is
a party may be assigned by the Lessee unless otherwise expressly permitted by the terms thereof.
The Bank may at any time sell or grant participations to any other Person (a “participant”) in the
Issuer’s Letter of Credit Obligations and the Letter of Credit Documents; provided, however, except
as provided in the immediately following sentence, the Lessee shall continue to deal solely and
directly with the Bank in connection with the Bank’s rights and remedies under this Reimbursement
Agreement. The Lessee hereby authorizes the Bank and each such participant, in case of an Event of
Default hereunder, to proceed directly, by right of setoff, banker’s lien or otherwise, against any
assets of the Lessee which may at the time of such default be in the hands of the Bank or in the
hands of such participant.

22

 

     Section 9.7 Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.

          (a) The Lessee hereby agrees and consents that any action or proceeding arising out of or
brought to enforce the provisions of this Reimbursement Agreement may be brought in any appropriate
court in Montgomery County, Maryland or Baltimore City, Maryland, all at the sole election of the
Bank, and by the execution of this Reimbursement Agreement the Lessee irrevocably consents to the
jurisdiction of each such court.

          (b) If for any reason the Lessee should become not qualified to do business in the State, the
Lessee hereby agrees to designate and appoint, without power of revocation, an agent for service of
process within the State, as the agent for the Lessee upon whom may be served all process,
pleadings, notice or other papers which may be served upon the Lessee as a result of any of the
Lessee’s obligations under this Reimbursement Agreement.

          (c) The Lessee covenants that throughout the period during which any of the Lessee’s
obligations under this Reimbursement Agreement remain outstanding, if a new agent for service of
process within the State is designated pursuant to the terms of subsection (b) of this Section, the
Lessee will immediately file with the Bank the name and address of such new agent and the date on
which such appointment is to become effective.

          (d) The Lessee and the Bank hereby jointly waive trial by jury in any action or proceeding to
which the Lessee and the Bank may be parties, arising out of or in any way pertaining to this
Reimbursement Agreement or any of the Letter of Credit Documents. It is agreed and understood that
this waiver constitutes a waiver of trial by jury of all claims against all parties to such actions
or proceedings who are parties to the Letter of Credit Documents and the Bond Documents.

     This waiver is knowingly, willingly and voluntarily made by the Lessee, and the Lessee hereby
represents that no representations of fact or opinion have been made by any individual to induce
this waiver of trial by jury or to in any way modify or nullify its effect. The Lessee further
represents that it has been represented in the signing of this Reimbursement Agreement and in the
making of this waiver by independent legal counsel, selected of its own free will, and that it has
had the opportunity to discuss this waiver with counsel.

     Section 9.8 Further Assurances and Corrective Instruments. The Bank and the Lessee
agree that they will, from time to time, execute and deliver or cause to be executed and delivered,
such supplements hereto and such further instruments as may reasonably be required for carrying out
the intention of the parties to, or facilitating the performance of, this Reimbursement Agreement.

     Section 9.9 Right to Perform; Advances by Bank. If the Lessee fails to make or cause
to be made any payment, or fails to perform, observe or comply with any of the Lessee’s obligations
under this Reimbursement Agreement, the Bank, without notice to the Lessee and without waiving any
default or releasing the Lessee from any of the Lessee’s obligations under this Reimbursement
Agreement, and without being under any obligation to do so, may make such payment or perform any of
the Lessee’s obligations under this Reimbursement Agreement for the account of the Lessee, and may
enter upon the Property or any part thereof for that

23

 

purpose and take all such action thereon as the Bank may consider necessary or appropriate for
such purpose. All amounts so paid by the Bank and all costs, fees and expenses incurred by the
Bank in connection with such payment or performance (including, without limitation, attorneys’ fees
and expenses) shall be immediately due and payable by the Lessee as additional payments, together
with interest thereon from the date the same are paid or incurred at the Penalty Rate until the
same are paid in full by the Lessee.

     Section 9.10 Amendments, Changes and Modifications. This Reimbursement Agreement may
not be amended, changed, modified, altered or terminated except by a written instrument executed by
the Bank and the Lessee.

     Section 9.11 Execution of Counterparts. This Reimbursement Agreement may be executed
in several counterparts, each of which shall be an original and all of which shall constitute but
one and the same instrument.

     Section 9.12 Law Governing Construction of Agreement. This Reimbursement Agreement is
prepared and entered into with the intention that the law of the State shall govern its
construction.

     Section 9.13 Effective Date. This Reimbursement Agreement has been dated as of the
date above written solely for the purpose of convenience of reference and shall become effective
upon its execution and delivery, on the date hereof, by the parties hereto. All representations
and warranties set forth herein shall be deemed to have been made on the date hereof.

     Section 9.14 Conflicting Agreements. In the event of any conflict between the
provisions of the Letter of Credit Documents and this Reimbursement Agreement regarding the payment
and performance obligations of the Lessee, the provisions of this Reimbursement Agreement shall
control as between the Bank and the Lessee.

     Section 9.15 Set-off. In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, during the continuance of any Event
of Default hereunder, the Bank is hereby authorized at any time and from time to time, without
notice to the Lessee or to any other person or entity, any such notice being hereby expressly
waived, to set-off and to appropriate and apply any and all deposits and any other indebtedness at
any time held or owing by the Bank to or for the credit or the account of the Lessee against and on
account of the obligations and liabilities of the Lessee to the Bank under this Reimbursement
Agreement, irrespective of whether or not the Bank shall have made any demand hereunder.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

24

 

     IN WITNESS WHEREOF, the Lessee has caused this Reimbursement Agreement to be executed under
seal in its name and on its behalf by its duly authorized officer; and the Bank has caused this
Reimbursement Agreement to be executed under seal by its duly authorized officer, all being done as
of the day and year first above written.

	 	 	 	 	 	 
	WITNESS:	 	HUMAN GENOME SCIENCES, INC., as Lessee

 	 
	 	 	By:  	/s/
H. Thomas Watkins	(SEAL)
	 	 	 	Name:  	H. Thomas Watkins	 	 
	 	 	 	Title:  	President
and Chief Executive Officer	 	 
	 	 
	WITNESS:	 	MANUFACTURERS AND TRADERS TRUST

COMPANY, as Bank

 	 
	 	 	By:  	/s/
Arthur L. Perraud	(SEAL)
	 	 	 	Name:  	Arthur L. Perraud	 	 
	 	 	 	Title:  	Vice
President	 	 
	 	 

25exv10w12

Exhibit 10.12

AMENDED AND RESTATED LEASE AGREEMENT

BETWEEN

MARYLAND ECONOMIC DEVELOPMENT CORPORATION

AND

HUMAN GENOME SCIENCES, INC.

Dated December 1, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	Page	 
	1. Demise of Leased Premises
	 	 	1	 
	2. Certain Definitions
	 	 	1	 
	3. Title
	 	 	9	 
	4. [Intentionally Omitted]
	 	 	10	 
	5. Use of Leased Premises
	 	 	10	 
	6. Term; Purchase Option
	 	 	10	 
	7. Rent
	 	 	14	 
	8. Net Lease; Non-Terminability
	 	 	16	 
	9. Payment of Impositions; Compliance with Law and Restrictive Covenants
	 	 	17	 
	10. Liens; Recording and Title; Easements
	 	 	18	 
	11. Indemnification
	 	 	18	 
	12. Tenant’s Equipment; Building Equipment; Maintenance and Repair
	 	 	19	 
	13. Alterations
	 	 	20	 
	14. Condemnation
	 	 	21	 
	15. Insurance
	 	 	23	 
	16. Casualty and Restoration
	 	 	25	 
	17. Assignment and Subletting
	 	 	27	 
	18. Permitted Contests
	 	 	28	 
	19. Default Provisions
	 	 	29	 
	20. Additional Rights of Landlord
	 	 	33	 
	21. Inspection
	 	 	34	 
	22. Notices, Demands and Other Instruments
	 	 	34	 
	23. Estoppel Certificates
	 	 	34	 
	24. No Merger
	 	 	35	 
	25. Representations and Warranties of Tenant
	 	 	35	 
	26. Affirmative Covenants of Tenant
	 	 	36	 
	27. Negative Covenants of Tenant
	 	 	39	 
	28. Non-Recourse
	 	 	40	 
	29. Separability
	 	 	41	 
	30. Subordination
	 	 	41	 

-i-

 

TABLE OF
CONTENTS

(continued)

	 	 	 	 	 
	 
	 	 	Page	 
	31. Binding Effect
	 	 	42	 
	32. Headings
	 	 	42	 
	33. Environmental Matters
	 	 	42	 
	34. Quiet Enjoyment
	 	 	46	 
	35. Dealings With Credit Facility Provider
	 	 	46	 
	36. Nature of Transaction
	 	 	46	 
	37. Grant of Lien and Future Assurances
	 	 	47	 
	38. Miscellaneous
	 	 	51	 

LIST OF EXHIBITS

	 	 	 
	EXHIBIT A

	 	Description of Land
	EXHIBIT B

	 	[Intentionally Omitted]
	EXHIBIT C

	 	List of Tenant’s Equipment
	EXHIBIT D

	 	Schedule of Option Purchase Prices
	EXHIBIT E

	 	Notice and Payment Addresses

-ii-

 

AMENDED AND RESTATED LEASE AGREEMENT

     THIS AMENDED AND RESTATED LEASE AGREEMENT (this “Lease”) is made as of December 1, 2009, by
and between MARYLAND ECONOMIC DEVELOPMENT CORPORATION, a body politic and corporate and an
instrumentality of the State of Maryland (“Landlord”) and HUMAN GENOME SCIENCES, INC., a Delaware
corporation (“Tenant”).

RECITALS

     A. Landlord, at the request of Tenant, has previously acquired from Montgomery County,
Maryland a certain parcel of land located at the Johns Hopkins Belward Research Campus in
Montgomery County, Maryland, more particularly described on Exhibit A attached hereto and
made a part hereof (the “Land”) (as further defined in Paragraph 2 hereof).

     B. Landlord acquired the Land at the request of Tenant for the sole purposes of

     (a) constructing on the Land, a process development and manufacturing plant consisting of
approximately 84,000 square feet in accordance with plans and specifications approved by Landlord
and Tenant,

     (b) leasing to Tenant, pursuant to that certain Lease Agreement dated as of December 1, 1997
between Landlord and Tenant, the 1997 Leased Premises (as that term is defined in Paragraph 2
hereof),

     (c) constructing on the Land, an addition to such process development and manufacturing plant
consisting of approximately 43,000 square feet in accordance with plans and specifications approved
by Landlord and Tenant, and

     (d) leasing to Tenant, pursuant to that certain Lease Agreement dated as of December 1, 1999
between Landlord and Tenant (the “1999 Lease”), the Leased Premises (as that term is defined in
Paragraph 2 hereof).

     C. The parties desire to enter into this Lease for the purpose of amending and restating the
1999 Lease in its entirety.

AGREEMENTS

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Landlord and Tenant hereby covenant and agree as follows:

     1. Demise of Leased Premises. In consideration of the rents and covenants herein
stipulated to be paid and performed, Landlord hereby demises and lets to Tenant, and Tenant hereby
demises and lets from Landlord, the Leased Premises.

     2. Certain Definitions. The following terms shall have the definitions provided
below. Unless specifically provided otherwise, all accounting terms have the definitions given

 

 

them in accordance with GAAP (hereinafter defined) as applied to the applicable Person on a
consistent basis by its accountants in the preparation of its previous annual financial statements.

     Act of Bankruptcy means with respect to any Person, the filing of a petition in
bankruptcy under the Bankruptcy Code, or the commencement of a proceeding under any other
applicable law concerning insolvency, reorganization or bankruptcy, by or against such Person as
debtor.

     Accumulated Funding Deficiency means an “accumulated funding deficiency” as defined in
Section 302 of ERISA or Section 412 (a) of the Code..

     Additional Improvements means the buildings, structures and other improvements,
including “fit-outs”, previously constructed on the Land and constituting an addition to the
Improvements, consisting of approximately 43,000 square feet.

     Additional Rent means Additional Rent as defined in Paragraph 7.

     Affiliate means: (a) any Person in which Tenant legally or beneficially owns or holds,
directly or indirectly, any capital stock or other equity interest; (b) any Person that is a
partnership in which Tenant is a partner, or a joint venturer in which Tenant is a joint venturer
or a limited liability company of which Tenant is a managing member; (c) any Person that is a
director, officer, employee, stockholder (legally or beneficially) or other affiliate of any of the
foregoing or of Tenant; and (d) any Person that directly or indirectly controls, is under the
control of, or is under common control with, Tenant, including, without limitation, any Person that
directly or indirectly has the right or power to direct the management or policies of Tenant and
any Person whose management or policies Tenant directly or indirectly has the right or power to
direct.

     Alterations means all changes, additions (including additional Improvements on the
Land), improvements or repairs to, all alterations, reconstructions, renewals or removals of and
all substitutions or replacements for any of the Improvements, both interior and exterior,
structural and non-structural, and ordinary and extraordinary.

     Assignment means the Assignment, Subordination and Non-Disturbance Agreement by and
among Landlord, Tenant and the Bank, dated as of December 1, 2009, together with all amendments
thereto and modifications thereof.

     Bankruptcy Code means Title 11 of the United States Code, as amended, and all rules
and regulations promulgated pursuant thereto.

     Bank means Manufacturers and Traders Trust Company, a New York banking corporation,
its successors and assigns.

     Basic Rent means Basic Rent as defined in Paragraph 7.

     Basic Rent Payment Date means any date on which an installment of Basic Rent is due
pursuant to Paragraph 7.

2

 

     Beneficiary means, collectively, the Bank and any other Credit Facility Provider, as
Beneficiary under the Deed of Trust.

     Bond Documents has the meaning given to such term in the Indenture.

     Bond Purchase Drawing has the meaning given to such term in the Indenture.

     Bonds means, collectively, the Series A Bonds and the Series B Bonds.

     Building Equipment means the equipment and fixtures installed in the Additional
Improvements which are integral to the occupancy of the Leased Premises as a “tenantable shell”
(e.g., all elevators, escalators, shades, awnings, floor coverings, screens, landscaping and
security systems and building code required plumbing, heating, electrical, ventilation and
fire-extinguishing equipment) and financed with proceeds of the Bonds, but excluding therefrom the
Tenant’s Equipment.

     Code means the Internal Revenue Code of 1986, or any applicable predecessor statutory
provision. Each reference to a section of the Code herein shall be deemed to include the United
States Treasury Regulations in effect or proposed from time to time with respect thereto.

     Collateral Pledge Agreement means the Collateral Pledge Agreement dated as of December
1, 2009, between Tenant, as Pledgor, and the Bank, as Pledgee, together with all amendments thereto
and modifications thereof.

     Commonly Controlled Entity means any trade or business (whether or not incorporated)
which is a member of a “controlled group of corporations” (as such phrase is used and defined in
Section 414(b) of the Code) or which is under “common control” (as such phrase is used and defined
in Section 414 (c) of the Code), and of which Tenant or any Subsidiary of Tenant is a part.

     Credit Facilities has the meaning given to such term in the Indenture. The initial
Credit Facilities are the Letters of Credit.

     Credit Facility Agreements has the meaning given to such term in the Indenture. The
initial Credit Facility Agreements are the Letter of Credit Agreements.

     Credit Facility Documents has the meaning given to such term in the Indenture. The
initial Credit Facility Documents are the Letter of Credit Documents.

     Credit Facility Provider has the meaning given to such term in the Indenture. The
initial Credit Facility Provider is the Bank.

     Deed of Trust means the Amended and Restated Deed of Trust dated as of December 1,
2009, encumbering the Land, the Improvements and the Leased Premises, from Landlord to certain
individual trustees for the benefit of the Beneficiary, together with all amendments thereto and
modifications thereof.

     Default Rate means the Default Rate as defined in Paragraph 7(e).

3

 

     Encumbrances means Encumbrances as defined in Paragraph 30.

     ERISA means the Employee Retirement Income Security Act of 1974, as amended, and all
Laws promulgated pursuant thereto or in connection therewith.

     Event of Default means an Event of Default as defined in Paragraph 19.

     Exchange Act means the Securities Exchange Act of 1934, as amended.

     GAAP means generally accepted accounting principles in the United States of America in
effect from time to time, consistently applied. In the event of a change in GAAP affecting the
covenants contained in Paragraphs 26 or 27 of this Lease or definitions contained in Paragraph 2 of
this Lease relating to such covenants, such covenants and definitions shall continue to be applied
as though such change in GAAP had not occurred unless and until Landlord, the Credit Facility
Provider, and Tenant shall agree in writing to amend or adjust such covenants or definitions as
deemed necessary as a result of such change in GAAP.

     Hedge means any interest rate swap or similar hedge arrangement in existence at any
time or from time to time between Landlord and any Hedge Counterparty.

     Hedge Agreement means any agreement between Landlord and any Hedge Counterparty in
existence at any time or from time to time, executed in connection with any Hedge, including
(without limitation) the Swap Agreement (as defined in the Letter of Credit Agreements), together
with all amendments thereto and modifications thereof.

     Hedge Counterparty means any Person, in its capacity as counterparty to any Hedge
Agreement, with which Landlord has entered into any Hedge or may hereafter at any time or from time
to time enter into any Hedge, including (without limitation) the Bank and any other Credit Facility
Provider.

     Hedge Documents means, collectively, any Hedge Agreement and all other documents in
existence at any time or from time to time, executed and delivered to evidence, secure, or in
connection with, any Hedge.

     Impositions means all taxes, including, without limitation, sales and use taxes (but
excluding, except as hereinafter provided, income, franchise, profits and gross receipt taxes),
assessments (including, without limitation, all assessments for public improvements or benefits),
water and sewer rents, rates and charges, excises, levies, license fees, permit fees, inspection
fees and other authorization fees and other charges or costs of any nature whatsoever, in each case
whether general or special, ordinary or extraordinary, foreseen or unforeseen, of every character
(including all interest and penalties thereon), which at any time during or in respect of the term
hereof may be assessed against, levied upon, confirmed or imposed on, or in respect of, or be a
lien upon (a) the Leased Premises or any part thereof or any estate, right or interest therein, (b)
any occupancy, use or possession of, or activity conducted on, the Leased Premises or any part
thereof, (c) any Basic Rent or Additional Rent or other sum reserved or payable by Tenant
hereunder, or (d) this Lease or Landlord. Notwithstanding the foregoing provisions, the term
“Impositions” shall exclude (i) franchise, capital stock or similar taxes, if any, of Landlord and
assessments, levies and liens arising therefrom; (ii) transfer, income, profits or other taxes, if

4

 

any, of Landlord, determined on the basis of its net income or net revenues, and assessments,
levies and liens arising therefrom; (iii) excise, gross receipts or gross income taxes imposed upon
or measured by Basic Rent, Additional Rent or other sums payable by Tenant pursuant to this Lease,
unless the taxes referred to in clauses (i) and (ii) above are in lieu of or a substitute for any
other tax or assessment upon or with respect to the Leased Premises or any increases therein which,
if such other tax or assessment were in effect, would be payable by Tenant.

     Improvements means the buildings, structures and other improvements, constituting a
process, development and manufacturing plant consisting of approximately 84,000 square feet
previously constructed on the Land in accordance with plans and specifications approved by Landlord
and Tenant.

     Indenture means the Amended and Restated Trust Indenture dated as of December 1, 2009
between Landlord and the Trustee, together with all amendments thereto and modifications thereof.

     Insurance and Award Trustee has the meaning given to that term in Paragraph 15.

     Land means that parcel of land described in Exhibit A attached hereto,
together with the easements, rights and appurtenances thereunto belonging or appertaining.

     Landlord means Maryland Economic Development Corporation, a body politic and corporate
and a public instrumentality of the State of Maryland.

     Landlord’s Bond Obligations means the “Issuer’s Bond Obligations,” as such term is
defined in the Indenture.

     Landlord’s Credit Facility Obligations means the “Issuer’s Credit Facility
Obligations”, as such term is defined in the Indenture.

     Law means the Constitution of the United States and of the State of Maryland and any
statute or rule of law of the United States and of the State of Maryland.

     Lease Documents has the meaning given to such term in Paragraph 25.

     Leased Premises means the Additional Improvements and the Building Equipment.

     Legal Requirements means all laws, statutes, codes, acts, ordinances, orders,
judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations, directions,
requirements and agreements with all governments, departments, commissions, boards, courts,
authorities, agencies, officials and officers, foreseen or unforeseen, ordinary or extraordinary,
which now or at any time hereafter may be applicable to the use, occupancy, possession,
maintenance, alteration, repair or reconstruction of any of the Leased Premises.

     Letters of Credit means, collectively, the Series A Bonds Letter of Credit and the
Series B Bonds Letter of Credit.

5

 

     Letter of Credit Agreements means, collectively, the Series A Bonds Letter of Credit
Agreement and the Series B Bonds Letter of Credit Agreement.

     Letter of Credit Documents has the meaning given to such term in the Letter of Credit
Agreements.

     LIBOR Rate means the fluctuating annual rate of interest which shall at all times
equal the interest rate which Bank announces and declares from time to time to be its one month
London Interbank Offered Rate, adjusted for any Federal Reserve Board requirements imposed on Bank
from time to time. All interest at the LIBOR Rate or computed thereon shall be calculated on the
basis of a 360-day year factor applied to actual days elapsed and shall be adjusted on any date on
which a change occurs in the LIBOR Rate.

     Multiemployer Plan means a multiemployer plan (as defined in ERISA) to which Tenant,
or any Commonly Controlled Entity, as appropriate, has or had an obligation to contribute.

     Net Award has the meaning given to such term in Paragraph 14.

     Net Proceeds has the meaning given to such term in Paragraph 15.

     Operative Documents means this Lease, the Bond Documents and the Credit Facility
Agreements, the Credit Facility Documents, the Collateral Pledge Agreement, the Letters of Credit,
the Letter of Credit Agreements, the Letter of Credit Documents, the Hedge Documents, if
applicable, and the Deed of Trust.

     Paying Agent has the meaning given to such term in the Indenture.

     Permitted Equipment Lien means any encumbrance or other lien upon, or security
interest in, or any equipment lease of, any Tenant’s Equipment, or interest therein, provided that
the acquisition to which any such encumbrance, lien, security interest or lease relates shall not
result in a default under any other provisions of this Lease.

     Permitted Use means the Permitted Use as defined in Paragraph 5.

     Person means any natural person, firm, association, corporation, company, trust,
partnership, public body or other entity.

     Plan means any pension, profit sharing, savings, stock bonus or other deferred
compensation plan which is intended to qualify under Code §401 and is subject to the requirements
of ERISA, together with any related trusts.

     Prohibited Transaction means a “prohibited transaction” as defined in Section 406 of
ERISA or Section 4975 of the Code.

     Rating Agency means any rating agency which at any time or from time to times provides
or furnishes a rating with respect to the Bonds.

     Registrar has the meaning given to such term in the Indenture.

6

 

     Remarketing Agent has the meaning given to such term in the Indenture.

     Remarketing Agreement means the “Placement and Remarketing Agreement” as such term is
defined in the Indenture.

     Rent Commencement Date means the Rent Commencement Date as defined in Paragraph 7(a).

     Reportable Event means a “reportable event” as defined by Title IV of ERISA.

     Restrictive Covenants means the covenants and restrictions set forth in (a) the
Declaration of Covenants, Easements and Restrictions (Protective Covenants) made the 24th day of
September, 1997, by The Johns Hopkins University, and recorded among the Land Records of Montgomery
County, Maryland, in Liber 15181 at folio 074, and (b) The Johns Hopkins University Belward
Research Campus Declaration of Covenants, Conditions, Easements and Restrictions made the 24th day
of September, 1997, by The Johns Hopkins University, and recorded among the Land Records of
Montgomery County, Maryland, in Liber 15181 at folio 084.

     Series A Bonds means the $4,375,000 Taxable Variable Rate Demand/Fixed Rate Revenue
Bonds (Human Genome Sciences, Inc. Facility), Series 1999A, previously issued by the Landlord to
finance a portion of the costs of the acquisition, construction and equipping of the Leased
Premises.

     Series A Bonds Letter of Credit means that certain Letter of Credit issued by the Bank
(or its predecessor, Allfirst Bank) in the original stated amount of $4,446,918 for the account of
Landlord as security for the Series A Bonds, as the same may from time to time be modified,
amended, supplemented, renewed or replaced.

     Series A Bonds Letter of Credit Agreement means that certain Amended and Restated
Letter of Credit Agreement between the Bank and Landlord dated as of December 1, 2009, as the same
may from time to time be modified, amended, supplemented, renewed or replaced.

     Series B Bonds means the $13,125,000 Taxable Variable Rate Demand/Fixed Rate Revenue
Bonds (Human Genome Sciences, Inc. Facility), Series 1999B, previously issued by the Landlord to
finance a portion of the costs of the acquisition, construction and equipping of the Leased
Premises.

     Series B Bonds Letter of Credit means that certain Letter of Credit issued by the Bank
in the original stated amount of $11,353,617 for the account of Landlord as security for the Series
B Bonds, as the same may from time to time be modified, amended, supplemented, renewed or replaced.

     Series B Bonds Letter of Credit Agreement means that certain Letter of Credit
Agreement between the Bank and Landlord dated as of December 1, 2009, as the same may from time to
time be modified, amended, supplemented, renewed or replaced.

7

 

     State means the State of Maryland, acting through the Maryland Department of Business
and Economic Development and any other department or agency of the State of Maryland which makes
any of the State Loans to Landlord.

     State Loans means, collectively, the following loans made by the State to Landlord for
the purpose of financing a portion of the costs of the acquisition and construction of the 1997
Leased Premises:

	 	(a)	 	Loan in the principal amount of $2,000,000, from the Maryland Department of
Business and Economic Development under the Maryland Industrial Land Act;
	 
	 	(b)	 	Loan in the principal amount of $3,000,000, made by the Maryland Department of
Business and Economic Development from the Maryland Industrial and Commercial
Redevelopment Fund; and
	 
	 	(c)	 	Loan in the principal amount of $2,000,000, made by the Maryland Department of
Business and Economic Development from the Maryland Economic Development Opportunities
Program Fund.

     State Loan Assignment means the Assignment, Subordination and Non-Disturbance
Agreement by and among Landlord, the Tenant and the State, dated December 31, 1997, together with
all amendments thereto and modifications thereof.

     State Loan Beneficiary means the Beneficiary as such term is defined in the State Loan
Deed of Trust.

     State Loan Deed of Trust means the Second Deed of Trust dated December 1, 1997,
encumbering the 1997 Leased Premises, from Landlord to certain individual trustees for the benefit
of the State Loan Beneficiary, together with all amendments thereto and modifications thereof.

     State Loan Documents means, collectively, any and all documents executed and delivered
by Landlord as evidence of, as security for, or in connection with, the State Loans, including
(without limitation) the State Loan Deed of Trust and the State Loan Assignment.

     Subsidiary or Subsidiaries means, with respect to any Person (including Tenant), any
present or future Person at least a majority of whose outstanding Voting Stock shall at the time be
owned by such Person (including Tenant) or by one or more Subsidiaries of such Person, or by such
Person (including Tenant) and one or more Subsidiaries of such Person (including Tenant).

     Tenant Collateral means all of Tenant’s right, title and interest in and to (i) the
Leased Premises, (ii) contracts, contract rights and general intangibles relating to the
maintenance of the Improvements and/or to the Subject Leases (as hereinafter defined) and (iii)
proceeds of any of the foregoing.

     Tenant’s Equipment means that certain equipment described on Exhibit C attached hereto
(as such Exhibit C may from time to time be updated by the Tenant to include equipment to be

8

 

used for the Permitted Use), together with all replacements thereof. It is anticipated that
some or all of Tenant’s Equipment will be leased by Tenant.

     Term means the Term as defined in Paragraph 6.

     Trustee means Manufacturers and Traders Trust Company, successor in interest to
Allfirst Trust Company, National Association, its successors and assigns.

     Voting Stock means the shares of any class of capital stock of a Person having
ordinary voting power to elect the directors, managers or trustees thereof (irrespective of whether
or not at the time stock of any class or classes of such Person shall have or might have voting
power by reason of the happening of any contingencies).

     1997 Bond Beneficiary means, collectively, the Bank and any other Credit Facility
Provider (as defined in the 1997 Lease), as Beneficiary under the 1997 Bond Deed of Trust.

     1997 Bond Deed of Trust means the Deed of Trust dated as of December 1, 1997,
encumbering the 1997 Leased Premises, from Landlord to certain individual trustees for the benefit
of the 1997 Bond Beneficiary, together with all amendments thereto and modifications thereof.

     1997 Deeds of Trust means, collectively, the 1997 Bond Deed of Trust and the State
Loan Deed of Trust.

     1997
Lease means the Lease Agreement dated as of December 1, 1997, between Landlord
and Tenant, together with all amendments thereto and modifications thereof

     1997 Leased Premises means the Land, the Improvements and the Building Equipment (as
defined in the 1997 Lease).

     3. Title.

          (a) The Leased Premises are demised and let subject to (i) the Deed of Trust and the 1997
Deeds of Trust and any Encumbrances executed in connection therewith and all of the terms and
provisions thereof, including but not limited to the provisions governing disbursement of insurance
proceeds and condemnation awards, (ii) the existing state of the title of the Land as of the date
hereof and any other exceptions or encumbrances of record as of the date hereof and any other
restrictions, exceptions and Encumbrances entered into subsequent to the date hereof with Tenant’s
knowledge and written consent, which consent shall not be unreasonably withheld or delayed provided
Tenant’s rights hereunder are not adversely affected in a material manner (including Tenant’s
option to purchase the Leased Premises, together with the Land and the Improvements pursuant to the
1997 Lease, as hereinafter provided), (iii) any state of facts which an accurate survey or physical
inspection of the Leased Premises might show, and (iv) the condition of the Leased Premises, as of
the Rent Commencement Date, without representation or warranty by Landlord, and without liability
or obligation of Landlord for patent or latent defects.

9

 

          (b) Tenant has made its own investigation as to the existing state of the title of the Land
and has made arrangements for its own survey.

     4. [Intentionally Omitted]

     5. Use of Leased Premises.

          Tenant shall occupy and use the Leased Premises only as a biological research, product
development and manufacturing and related administrative use facility (the “Permitted Use”), or for
such other lawful purpose as may be approved by Landlord, the Credit Facility Provider and the
State in their sole discretion (except that Landlord, the Credit Facility Provider and the State
will not unreasonably withhold consent to additional uses which are related to the Permitted Use),
subject, in addition, to the terms and provisions of any covenants, easements, conditions or
restrictions of record now or hereafter recorded with the written consent of Tenant, including but
not limited to the Deed of Trust and the 1997 Deeds of Trust and the Restrictive Covenants, and for
no other purpose. Tenant shall not abandon the Leased Premises. Tenant shall not permit any
unlawful occupation, business or trade to be conducted on any of the Leased Premises or any use to
be made thereof contrary to applicable Legal Requirements. Tenant shall not use or occupy or
permit any of the Leased Premises to be used or occupied, nor do or permit anything to be done in
or on any of the Leased Premises, in a manner which would or might (i) make void or voidable any
insurance then in force with respect to any of the Leased Premises, (ii) make it difficult or
impossible to obtain fire or other insurance which Tenant is required to furnish hereunder, (iii)
cause structural injury to any of the Improvements or the Additional Improvements, or (iv)
constitute a public or private nuisance or waste.

     6. Term; Purchase Option.

          (a) Subject to the terms, covenants, agreements and conditions contained herein, Tenant shall
have and hold the Leased Premises for a term (the “Term”) commencing on December 1, 2009 and ending
at midnight on January 1, 2019.

          Landlord shall have the right during the last twelve months of the Term of this Lease to (i)
advertise the availability of the Leased Premises for sale or for reletting and to erect upon the
Leased Premises signs indicating such availability (provided that such signs do not unreasonably
interfere with the use of the Leased Premises by Tenant), and (ii) show the Leased Premises to
prospective purchasers or tenants at such reasonable times and on reasonable prior notice during
normal business hours as Landlord may select, subject to Tenant’s customary access restrictions.

          (b) Provided that, at the time of exercise of the following purchase option and at the time of
closing of the purchase of the Leased Premises pursuant to such option, (i) no Event of Default or
event which, with the giving of notice or the lapse of time, or both, would constitute an Event of
Default which would entitle Landlord to terminate this Lease or the 1997 Lease or evict Tenant from
possession of the Leased Premises or of the Land or the Improvements, shall exist, (ii) all
payments of Basic Rent and Additional Rent under this Lease and all payments of Basic Rent (as
defined in the 1997 Lease) and Additional Rent (as defined in the 1997 Lease) under the 1997 Lease
shall have been paid through the date of the exercise of

10

 

such purchase option, and (iii) this Lease and the 1997 Lease shall be in full force and
effect (unless this Lease or the 1997 Lease is not in full force and effect due to Landlord’s
default), then Tenant shall have the right and option, by giving notice as set forth below, to
acquire the Leased Premises from Landlord as provided below. Tenant may not exercise such purchase
option unless it simultaneously exercises its option to purchase the Leased Premises (as defined in
the 1997 Lease) under the 1997 Lease, and Tenant may not exercise its option to purchase the Leased
Premises (as defined in the 1997 Lease) under the 1997 Lease unless it simultaneously exercises the
purchase option described in this subparagraph 6(b). Tenant may not exercise such purchase option
during any period in which the Bonds are not subject to redemption pursuant to Section 3.1(c) or
Section 3.1(e) of the Indenture, unless the Bonds are to remain outstanding after the closing of
such purchase option.

          Tenant may exercise such purchase option by written notice to Landlord, with a copy of such
written notice to the Credit Facility Provider; provided that, in the event that Landlord is in
default under the provisions of the Bond Documents or the Credit Facility Documents and such
default is not the result of an Event of Default under this Lease, Tenant may also exercise such
purchase option prior to such date by written notice to Landlord, with a copy of such written
notice to the Credit Facility Provider. If Tenant exercises such purchase option by giving such
written notice, and (i) the Bonds have been previously redeemed, the closing of such purchase
option shall occur no later than the 90th day following such notice (or the next business day if
such 90th day is not a business day), or (ii) the Bonds then bear interest at a variable rate, the
closing of such purchase option shall occur no later than the 180th day following such notice (or
the next business day if the 180th day is not a business day), or (iii) the Bonds then bear
interest at a fixed rate, the closing of such purchase option shall occur no later than the later
of (A) the first day on which the Bonds may be redeemed pursuant to Section 3.1(e) of the
Indenture, and (B) the 180th day following such notice (or the next business day if the 180th day
is not a business day), PROVIDED THAT, in the case of (ii) or (iii) above, unless the Bonds are to
remain outstanding after the closing of such purchase option, the closing of such purchase option
shall not take place unless all Bonds shall have been redeemed on or before the date of the closing
of such purchase option.

          Not later than 50 days prior to the date of the closing of such purchase option, Tenant shall
pay to Landlord, in immediately available funds, the sum of the following (the “Basic Purchase
Price”), which sum shall be held, in trust, by Landlord and used by Landlord solely for the
purposes hereinafter set forth:

          (A) the applicable option purchase price set forth on the Schedule of Option
Purchase Prices attached hereto as Exhibit D and made a part hereof,
plus

          (B) if Tenant exercises such purchase option during a period in which the Bonds
bear interest at a fixed rate, an amount of money equal to any redemption premium
payable upon redemption of the Bonds on the next optional redemption date as set
forth in Section 3.1(e) of the Indenture, unless the Bonds are to remain outstanding
after the closing of such purchase option.

11

 

Any portion of the Basic Purchase Price which is not paid to the Trustee, as provided below, will
be held by Landlord, in trust, upon terms and conditions mutually acceptable to Landlord and
Tenant, in an interest bearing account at a commercial bank mutually acceptable to Landlord and
Tenant, pending the closing of such purchase option.

          Upon receipt by Landlord of the Basic Purchase Price, Landlord shall pay to the Trustee from
the Basic Purchase Price, to be held in an irrevocable escrow for the redemption of the Bonds, in
immediately available funds, an amount sufficient, when added to moneys then held by the Trustee
and available for the redemption of Bonds, to redeem all of the Bonds in full on the next date on
which the Bonds may be redeemed pursuant to Section 3.1(c) or 3.1(e) of the Indenture, unless the
Bonds are to remain outstanding after the closing of such purchase option.

          In addition, at the closing of such purchase option, Tenant shall (1) pay or cause to be paid
to Montgomery County, Maryland one-half of all transfer and recordation taxes required or necessary
to be paid in connection with the transfer of the Leased Premises from Landlord to Tenant (it being
the intent of the parties that, but for Landlord’s exemption from payment of transfer and
recordation taxes, one-half of any such transfer and recordation taxes would be attributable to
Landlord), and (2) pay to Landlord, in immediately available funds, the sum of the following:

          (A) all Basic Rent and Additional Rent through the date of the closing of such
purchase option, plus

          (B) all actual third party costs and expenses (including reasonable attorneys
fees and expenses) of the Credit Facility Provider and the State (excluding
Landlord’s internal overhead) incurred in connection with such purchase, including
(without limitation) any costs incurred by Landlord in connection with “unwinding”
any Hedge, but deducting any benefits accruing to Landlord in connection with
“unwinding” any Hedge, plus

          (C) all brokerage fees, if any, and other costs and expenses required or
necessary to be paid in connection with the transfer of the Leased Premises from
Landlord to Tenant.

          Notwithstanding the foregoing, in the event Montgomery County, Maryland or any other entity
denies applicability of Landlord’s exemption from such transfer and recordation taxes and,
accordingly, or for any other reason, requires payment of Landlord’s one-half of such transfer or
recordation taxes, Tenant agrees to advance the full amount of such transfer and recordation taxes
on behalf of Landlord, reserving the right on behalf of Tenant and Landlord to appeal such
imposition, and in such case, Landlord agrees to cooperate with Tenant in any effort by Tenant to
appeal the imposition of any such transfer and/or recordation taxes upon Landlord, provided such
appeal is made at Tenant’s sole cost and expense. Any transfer and/or recordation taxes refunded
to Landlord as a result of any such appeal shall be delivered by Landlord to Tenant.

12

 

          If, at the time Tenant exercises such purchase option, any of the Bonds shall have been
redeemed or paid prior to maturity, the Basic Purchase Price shall be reduced by an amount equal to
the total amount of Bonds so redeemed or paid.

          If, at the time Tenant exercises such purchase option, there shall be on deposit with the
Trustee any moneys which are available for the redemption of the Bonds upon the closing of such
purchase option, and the outstanding Bonds are to be redeemed upon the closing of such purchase
option, the Basic Purchase Price shall be reduced by an amount equal to the amount of moneys so on
deposit with the Trustee.

          Upon Tenant’s exercise of such purchase option, Tenant may advise Landlord that Tenant will
purchase the Leased Premises pursuant to such purchase option, subject to the Bond Documents and
the Credit Facility Documents, and that Tenant either will assume all of the obligations of
Landlord under the Bond Documents and the Credit Facility Documents or, in the alternative, pay the
portion of the Basic Purchase Price attributable to the outstanding Bonds by the delivery of a loan
agreement, or similar document, evidencing Tenant’s agreement to pay Landlord amounts which are
sufficient to enable Landlord to pay its monetary obligations under the Bond Documents and the
Credit Facility Documents, in which event (i) the Basic Purchase Price will be reduced by the
principal amount of the Bonds which would have been redeemed upon the closing of such purchase
option, (ii) at or prior to the closing of such purchase option, Tenant and Landlord will execute
and deliver such documents, and take such actions, as Landlord and the Credit Facility Provider may
require, in their sole discretion, to provide for the assumption by Tenant of Landlord’s
obligations under the Bond Documents and the Credit Facility Documents, and (iii) the Bonds will
not be redeemed but will remain outstanding after the closing of such purchase option.

          At the closing of such purchase option, Landlord shall pay, from the moneys paid to Landlord
by Tenant as set forth above, (1) to the Trustee, the Paying Agent, the Registrar, the Remarketing
Agent, the Rating Agency, the Credit Facility Provider and any Hedge Counterparty, all accrued
fees, costs and expenses then payable to the Trustee, the Paying Agent, the Registrar, the
Remarketing Agent, the Rating Agency, the Credit Facility Provider and any Hedge Counterparty, (2)
to the Credit Facility Provider, all actual third party costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by them in connection with such purchase of the Leased
Premises by Tenant and, if applicable, in connection with the assumption by Tenant of the
obligations of Landlord under the Bond Documents and the Credit Facility Documents.

          In consideration of the payment by Tenant to Landlord of the Basic Purchase Price and the
other amounts of money set forth above, Landlord, by special warranty deed, will transfer its
interest in the Leased Premises, as well as incidental personal property relating to the Leased
Premises, to Tenant as of the date of the closing of such purchase option, free of all
Encumbrances, other than (1) Encumbrances in existence on the date of this Lease, (2) Encumbrances
assumed by Tenant, (3) Encumbrances approved by Tenant, and (4) the Bond Documents and the Credit
Facility Documents in the event that in connection with the purchase of the Leased Premises by
Tenant pursuant to such purchase option Tenant assumes all of Landlord’s obligations under the Bond
Documents and the Credit Facility Documents; and Landlord will assign to Tenant all contracts and
warranties (to the extent assignable) relating to

13

 

the Leased Premises and/or incidental to any and all personal property relating to the Leased
Premises.

          Notwithstanding any other provision of this Lease, Landlord will not accept the Basic Purchase
Price and the other amounts of money set forth above, and will not close such purchase option,
unless the amount of the Basic Purchase Price is sufficient to enable Landlord to redeem all of the
Bonds at the then applicable redemption price, and to pay all of Landlord’s Bond Obligations and
Landlord’s Credit Facility Obligations in connection therewith, unless, in connection with the
purchase of the Leased Premises by Tenant pursuant to such purchase option, Tenant assumes all of
the obligations of Landlord under the Bond Documents and the Credit Facility Documents, or, in the
alternative, delivers a loan agreement, or similar document, in payment of a portion of the Basic
Purchase Price as set forth above.

          Concurrently with the closing of such purchase option, Landlord shall cause the Deed of Trust
(if not previously satisfied) to be released upon the payment by Landlord to the Trustee of the
amounts set forth above, unless Tenant shall have assumed all of the obligations of Landlord under
the Bond Documents and the Credit Facility Documents as set forth above, in which event the Deed of
Trust will not be so released.

          Upon the closing of such purchase option and the payment of all amounts set forth above,
Tenant shall be released of all of its obligations under this Lease; provided, however that any and
all obligations and liabilities of Tenant under this Lease that survive the Term of this Lease
(such as indemnification obligations) shall survive the closing of such purchase option.

          (c) In the event Tenant exercises its option to purchase the Leased Premises from Landlord as
set forth above, but fails to close as and when required as set forth above, such failure shall
constitute an Event of Default under this Lease.

     7. Rent.

          (a) As used herein, the term “Rent Commencement Date” means December 1, 2009.

          (b) Tenant covenants to pay to Landlord, on the first day of each and every calendar month,
beginning on the Rent Commencement Date, basic rent in the amount of $80,000 per month, subject to
adjustment as set forth in subparagraph (c) below (such basic rent, as so adjusted from time to
time, is hereinafter referred to as “Basic Rent”). Basic Rent shall be payable to Landlord by
separate check or wire transfer at Landlord’s payment addresses set forth in Exhibit E
attached hereto and made a part hereof or at such other place or bank account within the
continental United States or to such other Person as Landlord from time to time may designate to
Tenant in writing, in lawful money of the United States of America.

          (c) Landlord and Tenant acknowledge and agree that the Basic Rent has been determined based
upon a number of factors, which include the amount of debt service payable by Landlord with respect
to the Bonds and the State Loans and other costs which may fluctuate from time to time. Basic Rent
shall be adjusted from time to time by Landlord and Tenant to reflect, among other things, (i) any
redemption of the Bonds prior to maturity, and (ii) the expiration of any Hedge or any default by
any Hedge Counterparty in the performance of its

14

 

obligations under any Hedge Documents. Accordingly, within thirty (30) days of each calendar
quarter-end, Landlord shall provide Tenant with a reconciliation of the amounts and costs incurred
by Landlord which have been paid by Landlord from Basic Rent received from Tenant, together with a
projection of funds needed by Landlord over the ensuing twelve (12) months to pay timely such costs
and amounts which have customarily been paid by Landlord from Basic Rent payments; and effective
with the Basic Rent payment due sixty (60) days after the end of each quarter-end, Basic Rent shall
be adjusted upward or downward as such projections warrant.

          (d) Tenant covenants to pay and discharge, as additional rent, the following (collectively,
the “Additional Rent”):

          (i) the amount of any cost or expense required to be paid by Landlord with respect to
or in connection with the acquisition, construction and financing of the Additional
Improvements and the ownership of the Leased Premises and the leasing of the Leased Premises
to Tenant, including (without limitation), consultants’ fees, accounting fees, legal fees
and other expenses relating to any litigation involving the Leased Premises (except to the
extent that Landlord is otherwise indemnified therefor pursuant to another provision of this
Lease), costs of maintenance, upkeep and repair of the Leased Premises paid for by Landlord,
costs of permits, charges by governmental authorities, and amounts paid pursuant to any
declaration or covenants including the Restrictive Covenants, and all indemnification
obligations of Landlord to any Person or Persons resulting from or growing out of such
acquisition, construction, financing, ownership and leasing, and any sales taxes,
plus

          (ii) all fees and amounts payable by Landlord to any Person or Persons in connection
with the acquisition, construction and financing of the Additional Improvements, to the
extent not otherwise payable pursuant to the 1997 Lease, including (without limitation) all
credit facility fees, remarketing fees, common area maintenance fees or rents or other
similar charges relating to the maintenance of the Leased Premises or any roads or other
improvements related thereto, monthly deposits on account of Impositions and insurance
premiums, in the event that Landlord is required to make such monthly deposits on account of
Impositions and insurance premiums, and amounts representing increases in fees payable to
the Rating Agency or to the Trustee or the Registrar or the Paying Agent pursuant to the
Indenture or increases in the negotiation fees payable to the Credit Facility Provider, and
amounts representing changes in costs resulting from any conversion of the interest rate
payable on the Bonds from a variable rate to one or more fixed rates or from one or more
fixed rates to one or more other fixed rates or to a variable rate, plus

          (iii) the amounts determined by Landlord to be sufficient to enable Landlord to make
payments of all other monetary obligations of Landlord under the Bond Documents, the Credit
Facility Documents, and any Hedge Documents.

Landlord, as promptly as practicable after obtaining knowledge that any Additional Rent will be
payable under this Lease, will advise Tenant, by written notice, of the amount of any Additional
Rent payable hereunder and the date on which any Additional Rent is due and payable by Tenant in
order for Landlord to meet its obligations with respect to payments by Landlord to other

15

 

Persons. Additional Rent shall be paid to Landlord’s payment addresses set forth in Exhibit
E attached hereto. In the event of any failure by Tenant to pay or discharge any Additional
Rent, Landlord shall have all rights, powers and remedies provided herein or by Law in the case of
non-payment of Basic Rent. Unless otherwise provided herein, all payments of Additional Rent shall
be due on the date specified by Landlord in such written notice as the date on which such
Additional Rent is due and payable.

          (e) In the event that any payment of Basic Rent or Additional Rent is not made within 15 days
after the date on which the same is due and payable, any such payment in default and the entire
unpaid balance of all amounts owing to Landlord shall bear interest, from the date on which the
payment was due until such payment in default is paid in full, at the fluctuating rate which is at
all times equal to the LIBOR Rate plus 3% per annum (the “Default Rate”). In addition, Tenant
shall pay (i) a late charge equal to 2% of the payment in default as set forth above (except for
any payment with respect to a Bond Purchase Principal Drawing, as defined in the Indenture) which
is made more than 15 days after the date on which the same is due and payable, and (ii) all costs
of collection, including attorneys’ fees, if collection of amounts due to Landlord is referred to
an attorney after default by Tenant.

     8. Net Lease; Non-Terminability.

          (a) This Lease is a net lease, and Basic Rent, Additional Rent and all other sums payable by
Tenant shall be paid without notice (except as specifically provided herein) or demand.

          (b) Except as expressly provided in this Lease, Tenant shall not be entitled to any set-off,
counterclaim, recoupment, abatement, suspension, deferment, diminution, deduction, reduction or
defense of or to Basic Rent or Additional Rent or any other sums payable hereunder and the
obligations of Tenant under this Lease shall not be affected, for any reason, including the
following: (i) any damage to or the destruction of all or any part of the Leased Premises from
whatever cause, (ii) the taking of the Leased Premises or any portion thereof or interest therein
by condemnation, requisition or otherwise for any reason, (iii) the prohibition, limitation or
restriction of Tenant’s use of all or any part of the Leased Premises, or any interference with
such use, (iv) any title defect or encumbrance, or any eviction from the Leased Premises by
paramount title or otherwise, (v) Tenant’s acquisition or ownership of any interest in all or any
part of the Leased Premises otherwise than pursuant to an express provision of this Lease, (vi) any
failure on the part of Landlord to observe any provision of this Lease, or any default by Landlord
under any other agreement to which Landlord and Tenant may be parties, (vii) any claim which Tenant
has or might have against Landlord, or (viii) any other cause whether similar or dissimilar to the
foregoing, any present or future Law to the contrary notwithstanding except by agreement by and
among Landlord, Tenant, and the Credit Facility Provider. It is the intention of the parties
hereto that the obligations of Tenant hereunder shall be separate and independent covenants and
agreements, that Basic Rent, Additional Rent and all other sums payable by Tenant hereunder shall
continue to and be payable in all events, and that the obligations of Tenant hereunder shall
continue unaffected, unless the requirement to pay or perform the same shall have been terminated
pursuant to an express provision of this Lease.

16

 

          (c) Tenant agrees that it will remain obligated under this Lease in accordance with its terms,
and that it will not take any action to terminate, rescind or avoid this Lease or abate the rent
required hereby, notwithstanding (i) the bankruptcy, insolvency, reorganization, composition,
readjustment, liquidation, dissolution, winding-up or other proceeding affecting Landlord or any
assignee of Landlord in any such proceeding or/and (ii) any other action (including rejection) with
respect to this Lease which may be taken by any trustee or receiver of Landlord or of any assignee
of Landlord in any such proceeding or by any court in any such proceeding; and, in any such event,
so long as Tenant pays and performs its obligations under this Lease and does not take any action
to terminate, rescind or avoid this Lease or abate the rent required hereby, Tenant shall be
entitled to the benefits of Tenant set forth in this Lease.

          (d) Except as otherwise provided in this Lease, Tenant waives all rights which may now or
hereafter be conferred by law (i) to quit, terminate or surrender this Lease or (ii) to any
abatement, suspension, deferment or reduction of Basic Rent, Additional Rent or any other sums
payable under this Lease, except as expressly approved by the Credit Facility Provider or as
otherwise expressly provided herein.

          (e) Subject to Paragraph 38(f), Tenant and Landlord agree that the Credit Facility Provider is
and shall be a third-party beneficiary of this Lease and that, as such, the Credit Facility
Provider shall have the right to pursue any right, remedy or performance to which Landlord shall be
entitled pursuant hereto notwithstanding that but for the provisions of this subparagraph (e), the
Credit Facility Provider may not have had the right to pursue any such right, remedy or
performance.

     9. Payment of Impositions; Compliance with Law and Restrictive Covenants.

          (a) Subject to the provisions of Paragraph 18 relating to contests, Tenant shall pay all
Impositions before any fine, penalty, interest or cost may be added for non-payment. Tenant agrees
to furnish to Landlord, within 30 days after written demand therefor, proof of the payment of all
Impositions payable by Tenant as provided in this Paragraph 9. In the event that any Imposition
becomes due and payable during the Term and may be legally paid in installments, Tenant shall have
the option to pay such Imposition in installments; and in such event, Tenant shall be liable only
for those installments which become due and payable during the Term, with appropriate proration in
the case of fractional years. Any Impositions which are attributable in part to the Term and in
part to a period preceding or following the Term, as the case may be, shall be equitably
apportioned between Landlord and Tenant. If Landlord is required pursuant to the Bond Documents or
the Credit Facility Documents or the State Loan Documents to make monthly deposits on account of
Impositions and insurance premiums, and Landlord informs Tenant in writing thereof specifying the
amount of such deposits, Tenant shall pay such monthly deposits to Landlord, as Additional Rent
hereunder as provided in Paragraph 7(d).

          (b) Tenant shall promptly comply with and conform to all Legal Requirements concerning the
use, occupancy and conditions of the Leased Premises and all machinery, equipment, furnishings,
fixtures and improvements therein. If any such Legal Requirement requires an occupancy or use
permit, license, special exception, or other local, state or federal agency certification, then
Tenant shall promptly obtain and keep current the same.

17

 

          (c) Tenant shall comply with all of the Restrictive Covenants.

     10. Liens; Recording and Title; Easements.

          (a) Tenant will not, directly or indirectly, create or permit to remain, and will promptly
discharge, at its expense, any mortgage, lien, encumbrance or charge on, pledge of, or conditional
sale or other title retention agreement with respect to, the Leased Premises or any part thereof or
Tenant’s interest therein or Basic Rent, Additional Rent or other sums payable by Tenant under this
Lease, other than Permitted Equipment Liens. The existence of any mechanic’s, laborer’s,
materialman’s, supplier’s or vendor’s lien, or any right in respect thereof, shall not constitute a
violation of this Paragraph 10 if payment is not yet due upon the contract or for the goods or
services in respect of which any such lien has arisen so long as such payment is made or bonded off
within 30 days after the later to occur of the completion of the work which gave rise to the
imposition of said liens or the rendering of the invoice, statement or demand for such payment.
Nothing contained in this Lease shall be construed as constituting the consent or request of
Landlord, expressed or implied, of any contractor, subcontractor, laborer, materialman or vendor to
or for the performance of any labor or services or other furnishing of any materials for any
construction, alteration, addition, repair or demolition of or to the Leased Premises or any part
thereof.

          (b) At Tenant’s request and at Tenant’s sole cost and expense, Landlord and Tenant will
execute and deliver a memorandum evidencing Tenant’s option to purchase set forth in Paragraph 6,
and shall cause such memorandum to be recorded, filed or registered in such manner and in such
places as may be required by any present or future Law in order to publish notices and protect the
validity of such option to purchase.

          (c) Subject to the terms and conditions of Paragraph 30, Landlord shall have the right to
encumber the Leased Premises, provided that any such encumbrance (except for the Deed of Trust and
other Credit Facility Documents) shall be made expressly subject to Tenant’s rights under this
Lease including the purchase option.

     11. Indemnification. Tenant shall pay, protect, indemnify and save harmless Landlord
from and against any and all liabilities, losses, damages, costs, expenses (including all
reasonable attorneys’ fees and expenses), penalties, causes of action, suits, claims, demands or
judgments of any nature whatsoever arising from (i) any injury to, or the death of, any person or
any damage to property on the Leased Premises or upon adjoining sidewalks, streets or ways, if
caused by the negligence of Tenant or its agents or employees, or in any manner growing out of or
connected with the use, failure of use, condition or occupancy of the Leased Premises or any part
thereof or resulting from the condition thereof, (ii) any violation by Tenant of any covenant,
agreement or condition of this Lease, and (iii) any violation by Tenant of the terms of any
contract or agreement to which Tenant is a party and which affects the Leased Premises; provided,
however, that if any such liability, loss, damage, penalty, cost or expense, cause of action, suit,
claim, demand or judgment results from the negligence of Landlord, its agents or employees, or if
any such act or omission is determined to be a failure by Landlord to observe any provision of this
Lease (if observance is required of Landlord), the foregoing indemnity by Tenant shall apply with
respect to Landlord only to the extent of the insurance coverage maintained (or required to be
maintained, if greater) by Tenant pursuant to the provisions of

18

 

Paragraph 15 of this Lease. In case any action or proceeding is brought against Landlord by
reason of any such claim, Tenant covenants, upon notice from Landlord, to resist or defend such
action or proceeding by counsel reasonably satisfactory to Landlord, and, at the expense of Tenant,
Landlord will cooperate and assist in the defense of such action or proceeding if reasonably
requested so to do by Tenant.

     Tenant also shall pay, protect, indemnify and save harmless Landlord for all amounts,
liabilities, indemnities and obligations which Tenant assumes or agrees to pay or discharge
pursuant to this Lease, as well as any payments or indemnification made or required to be made by
Landlord under the Credit Facility Documents, the Bond Documents, the State Loan Documents or any
Hedge Documents as a result of Tenant’s default hereunder, together with every fine, penalty,
interest and cost which may be added for nonpayment or late payment thereof.

     The obligation of Tenant under this Paragraph 11 shall survive any termination of this Lease
as to any right of indemnity which shall have accrued prior to such termination.

     12. Tenant’s Equipment; Building Equipment; Maintenance and Repair.

          (a) Tenant, at its expense, shall install all specialized machinery, apparatus and equipment
which Tenant, in its sole and absolute discretion, deems necessary to permit the Leased Premises to
be used for the Permitted Use including, without limitation, the Tenant’s Equipment described on
Exhibit C attached hereto. All Tenant’s Equipment shall remain the property of the lessor
thereof or the property of the Tenant, as applicable, notwithstanding its attachment to the Leased
Premises. At the expiration of the Term, all of Tenant’s Equipment shall remain the property of
the lessor thereof or the property of the Tenant (as applicable) and shall be removed by Tenant or
such lessor in accordance with subparagraph (c) below.

          (b) Tenant, at its sole cost and expense, will keep and maintain the Leased Premises,
including any altered, rebuilt, additional or substituted buildings, structures and parts of the
Additional Improvements, in good repair and appearance, except for ordinary wear and tear, and will
with reasonable promptness make all structural and nonstructural, foreseen and unforeseen, and
ordinary and extraordinary changes and repairs of every kind and nature which may be required to be
made upon or in connection with the Leased Premises, the Building Equipment, or any part thereof;
in order to keep and maintain the Leased Premises and the Building Equipment in such good repair
and appearance. All repairs, replacements and renewals shall be at least equal in quality to the
original work and all replacements shall have a value and useful life at least equal to the value
and remaining estimated useful life of the item being replaced, and be suitable for a use which is
the same or similar to that of the item being replaced. Landlord shall not be required to
maintain, repair or rebuild, or to make any Alteration to the Leased Premises, the Building
Equipment, or Tenant’s Equipment, or any part thereof, whether ordinary or extraordinary,
structural or non-structural, foreseen or unforeseen, or to maintain the Leased Premises, the
Building Equipment, or Tenant’s Equipment, or any part thereof, in any way, and Tenant hereby
expressly waives the right to make repairs at the expense of Landlord, notwithstanding the fact
that such right may be provided for in any Law in effect at the time of the execution and delivery
of this Lease or which may thereafter be enacted.

19

 

          (c) Upon the expiration or earlier termination of this Lease, Tenant shall surrender the
Leased Premises in good condition, reasonable wear and tear and damage by casualty excepted, with
all Building Equipment in good working condition, and all Tenant’s Equipment removed. Any Tenant’s
Equipment required to be removed but not removed by Tenant within 30 days after the expiration or
earlier termination of this Lease shall be considered abandoned by Tenant and may be appropriated,
sold, destroyed or otherwise disposed of by Landlord without first giving notice thereof and
without obligation to account therefor to either Tenant or any lessor of such Tenant’s Equipment.
Tenant agrees to pay all costs and expenses incurred in removing, storing and disposing of Tenant’s
Equipment required to be removed but not removed. Tenant shall repair (i.e., replace, restore or
repair to a sightly and usable condition), at its expense, any damage to the Leased Premises caused
by removal of Tenant’s Equipment, whether effected by Landlord, Tenant, or Tenant’s lessor or any
of their agents or employees. Landlord shall not be responsible for any loss or damage to Tenant’s
Equipment under any circumstances. The provisions of this subparagraph (c) are not applicable in
the event that Tenant purchases the Leased Premises as provided in Paragraph 6.

          (d) Landlord shall, from time to time upon Tenant’s written request, execute appropriate
documents for the benefit of Tenant’s lenders or equipment lessors confirming the provisions of
this Paragraph 12 and containing such further undertakings of Landlord concerning the right of any
such lender or lessor to enter the Leased Premises following termination of this Lease for the
purpose of exercising its rights with respect to the collateral of such lender or lessor, including
removing the same, provided such further undertakings are on commercially reasonable terms and
conditions and require such lender or lessor to repair any damage to the Leased Premises caused by
the removal of Tenant’s Equipment.

          (e) Notwithstanding anything herein to the contrary, Tenant shall not be required to replace
any Building Equipment during the last 3 years of the Term, but Tenant, at Tenant’s expense, shall
keep all Building Equipment in good working condition throughout the Term.

     13. Alterations.

          (a) So long as no Event of Default or event which, with the giving of notice, the lapse of
time, or both, would constitute an Event of Default shall have occurred and be continuing, Tenant
may, at its expense, make Alterations, subject to the advance written consent of Landlord and
subject to the Deed of Trust and the 1997 Deeds of Trust provided that the consent of Landlord
shall not be required for non-structural Alterations which do not involve the exterior of the
building or changes in utilities, electrical, mechanical or other existing systems and which in
each separate Alteration do not exceed $500,000 in cost. Landlord agrees not to withhold, delay or
condition its consent provided that (i) all such Alterations, construction and installations shall
be performed in a good and workmanlike manner; (ii) all such Alterations, construction and
installations shall be expeditiously completed in compliance with all Legal Requirements; (iii) all
work done in connection with any such Alterations, construction or installation shall comply with
the requirements of any insurance policy required to be maintained by Tenant hereunder; (iv) Tenant
shall promptly pay all costs and expenses of any such Alteration, construction or installation and
shall discharge all liens filed against any of the Leased Premises arising, out of the same; (v)
Tenant shall procure and pay for all permits and

20

 

licenses required in connection with any such Alteration, construction or installation; (vi)
all such Alterations, construction and installations (except as provided in subparagraph 13(c)
below) shall be the property of Landlord and shall be subject to this Lease; (vii) the design of
any Alterations visible from the exterior of the Leased Premises shall comply with the terms of the
Restrictive Covenants (including obtaining any consents required thereunder); (viii) the contractor
performing such alterations shall be reputable, licensed and insured and shall, if required by
Landlord, be required to obtain performance and payment bonds; and (ix) Landlord shall incur no
expense or cost whatsoever in connection with such Alterations, including without limitation, costs
for reviewing and approving plans, additional common area maintenance fees, tap fees or other
utility fees, and costs incurred by Landlord in obtaining the approval of the Credit Facility
Provider and the State. Landlord may require, as a condition to its consent to any Alterations,
reasonable appropriate payments, assurances and undertakings from Tenant to ensure that all such
conditions are satisfied. Notwithstanding the foregoing, it shall not be unreasonable for Landlord
to withhold its consent, or to condition its consent, if either of the Beneficiaries withholds its
consent to any of the foregoing, or requires that certain conditions or requirements be satisfied
or observed.

          (b) In the event that any Alterations shall encroach upon any property, street or right-of-way
adjoining or adjacent to the Leased Premises, or shall violate the agreements or conditions
contained in any restrictive covenant affecting the Leased Premises or any part thereof, or shall
hinder or obstruct any easement or right-of-way to which the Leased Premises are subject or shall
impair the rights of others under any such easement or right-of-way, then promptly after written
request of Landlord or of any Person affected by any such encroachment, violation, hindrance,
obstruction or impairment, Tenant shall, at its expense, either (i) obtain valid and effective
waivers or settlements of all claims, liabilities and damages resulting from each such
encroachment, violation, hindrance, obstruction or impairment, whether the same shall affect
Landlord, Tenant or both, or (ii) take such other action as shall be necessary to remove such
encroachments, hindrances or obstructions and to end such violations or impairments.

          (c) All Tenant improvements that can be removed without damage to the structural integrity of
the Leased Premises or the normal functions of the Leased Premises or that are not necessary for
the normal use of a building as a tenantable shell building, and which were not financed with the
proceeds of the Bonds or the State Loans, shall, on termination of this Lease, become the property
of the Tenant.

     14. Condemnation.

          (a) Tenant, immediately upon obtaining knowledge of the institution of any proceeding for any
condemnation of the Leased Premises or the Land or the Improvements, shall notify Landlord thereof
and Landlord shall be entitled to participate with Tenant in any condemnation proceeding at
Tenant’s expense. Tenant hereby irrevocably assigns to Landlord any condemnation award or
condemnation payment to which Tenant may be or become entitled (except as set forth in subparagraph
(b) below) by reason of any taking of the Leased Premises or any part thereof, in or by
condemnation or other eminent domain proceedings pursuant to any Law, or by reason of the temporary
requisition of the use or occupancy of the Leased Premises, or the Land or the Improvements or any
part thereof, by any governmental authority, civil or military, whether the same shall be paid or
payable in respect of Tenant’s leasehold interest

21

 

hereunder or otherwise. The proceeds of the condemnation award shall be made available for
restoration if permitted by the Deed of Trust and the 1997 Deeds of Trust and if this Lease is not
terminated. As used herein, the term “Net Award” means any condemnation award received by
Landlord, less Landlord’s expenses and Tenant’s expenses, if any, in collecting same.

          (b) The foregoing notwithstanding, nothing in this Lease shall impair Tenant’s right to any
award or payment on account of Tenant’s trade fixtures, Tenant’s Equipment, and other tangible
property, moving expenses, loss of business and the like, if available, to the extent Tenant shall
have a right to make a separate claim therefor against the appropriate governmental authority, but
in no event shall any such separate claim be based upon the value of Tenant’s leasehold interest in
the Leased Premises or result in a reduction of the award or payment which would have been payable
to Landlord absent such separate claim by Tenant.

          (c) If there shall be taken by condemnation or other eminent domain proceedings pursuant to
any Law, general or special, (i) the entire Leased Premises or (ii) any substantial portion of the
Leased Premises which is sufficient to render the remaining portion thereof, in the reasonable
judgment of Landlord or Tenant, unsuitable for restoration for the continued use and occupancy of
Tenant’s business, or (iii) if the Credit Facility Provider or the State shall retain any Net Award
pursuant to the Deed of Trust and the 1997 Deeds of Trust (it being recognized that as a result
thereof, either of the Beneficiaries may refuse to allow the award to be disbursed for restoration
under certain circumstances, as provided in the Deed of Trust and the 1997 Deeds of Trust), then
Landlord and Tenant may each, not later than 90 days after any such taking, give notice to the
other of its intention to terminate this Lease on any Basic Rent Payment Date specified in such
notice, which date shall not be prior to the date of the vesting of title to the Leased Premises or
portion thereof in the condemning authority. In the event Landlord elects to terminate this Lease
in the case of (ii) or (iii) above, if Tenant elects to provide funds which, together with the Net
Award, are sufficient to restore the Leased Premises and pay Basic Rent and Additional Rent during
such restoration and provides evidence satisfactory to Landlord, the State and the Credit Facility
Provider (in the Credit Facility Provider’s and the State’s sole and absolute subjective judgment)
of its ability to do so within 30 days of Landlord’s election, Landlord’s election to terminate
shall be rescinded, this Lease shall continue in full force and effect pursuant to subsection (d)
below, and restoration of the Leased Premises shall proceed in accordance with Paragraph 16(b). In
the event either Landlord or Tenant elects to terminate this Lease under the provisions of this
Paragraph 14(c), Landlord shall be entitled to recover from Tenant, and Tenant will pay to
Landlord, on or prior to the effective date of termination, an amount equal to the Basic Rent,
Additional Rent and other sums which are then due and payable to the effective date of termination;
provided that in the event of such termination, Tenant may exercise its purchase option under
Paragraph 6(b) within 20 days after notice of termination.

          (d) If a portion of the Leased Premises shall be taken in or by condemnation or other eminent
domain proceedings pursuant to any Law, general or special, which does not result in a termination
of this Lease, then this Lease shall continue in full force and effect, and there shall be no
abatement or reduction of rent payable hereunder, except to the extent that any portion of the Net
Award is used to redeem Bonds or to prepay the State Loans prior to maturity. Unless Tenant
immediately elects to exercise its purchase option under Paragraph 6 above, subject to the
provisions of the Deed of Trust and the 1997 Deeds of Trust, the Net Award of

22

 

such condemnation shall be paid to Landlord and, promptly after such condemnation and payment
to Landlord of the Net Award, Landlord shall make the Net Award available to Tenant for
restoration, in accordance with Paragraph 16.

          (e) For the purposes of this Lease, all amounts payable pursuant to any agreement with any
condemning authority which has been made in settlement of or under threat of any condemnation or
other eminent domain proceeding affecting the Leased Premises shall be deemed to constitute an
award made in such proceeding.

          (f) The terms and provisions of this Paragraph 14 are subject to the terms and provisions of
the Deed of Trust, the 1997 Deeds of Trust, the 1997 Lease and the State Loan Documents.

     15. Insurance.

          (a) Tenant will maintain at its expense (i) such fire, casualty, extended coverage and all
risk insurance on the Improvements, the Additional Improvements, the Building Equipment (as defined
in the 1997 Lease) and Building Equipment as is required to be maintained by Landlord, as Grantor
under the Deed of Trust and the 1997 Deeds of Trust, provided that the amount of any casualty
insurance shall be in no event less than the actual replacement value of the Additional
Improvements and Building Equipment, less footings, foundations and other non-insurable portions,
(ii) commercial general public liability insurance with a single limit of not less than
$10,000,000, including contractual liability coverage insuring the obligations assumed by Tenant
under this Lease, premises and operations coverage, broad form property damage coverage and
independent contractors coverage, (iii) worker’s compensation insurance as required by Law, (iv)
business interruption insurance in the amount of $6,000,000, and (v) employer’s liability insurance
in an amount not less than $2,000,000 for each accident, $2,000,000 disease-policy limit and
$2,000,000 disease-each employee.

          (b) The insurance referred to in Paragraph 15(a) shall be written by companies of recognized
financial standing which are authorized to conduct an insurance business in the State of Maryland
and which are reasonably acceptable to Landlord, the Credit Facility Provider and the State. All
commercial public liability insurance shall name as the insured parties thereunder Landlord,
Tenant, the State and the Credit Facility Provider, as their interests may appear. Landlord shall
not be required to prosecute any claim against, or to contest any settlement proposed by, any
insurer, provided that Tenant may, at its expense, prosecute any such claim or contest any such
settlement. In such event, Tenant may bring such prosecution or contest in the name of Landlord,
Tenant, or both, and Landlord will join therein at Tenant’s written request upon the receipt by
Landlord of a satisfactory indemnity from Tenant against all costs, liabilities and expenses in
connection with such prosecution or contest.

          (c) So long as no Event of Default exists hereunder, insurance claims by reason of damage to
or destruction of any portion of the Leased Premises shall be adjusted by Tenant, but Landlord, the
State and the Credit Facility Provider shall have the right to join with Tenant in adjusting any
such loss. In furtherance of Tenant’s right to adjust, collect and compromise, in its discretion,
all claims under any of the insurance policies required by this

23

 

Paragraph 15, Tenant is authorized to execute and deliver all necessary proofs of loss,
receipts, vouchers and releases required by the insurers.

          (d) Every fire, casualty, extended coverage or all risk insurance policy required above (other
than on Tenant’s Equipment) shall contain a non-contributory mortgagee endorsement in favor of
Landlord, the Credit Facility Provider and the State. Every policy which Tenant is obligated to
carry under the terms of Paragraph 15(a) shall contain an agreement by the insurer that it will not
cancel such policy except after 30 days’ prior written notice to Landlord, the Credit Facility
Provider and the State, and that any loss otherwise payable thereunder shall be payable
notwithstanding any act or negligence of Landlord or Tenant which might, absent such agreement,
result in a forfeiture of all or a part of such insurance payment and notwithstanding any
foreclosure or other action or proceeding taken by either of the Beneficiaries pursuant to any
provision of the Deed of Trust or the 1997 Deeds of Trust upon the happening of an Event of
Default, as defined therein, or any change in title or ownership of the Leased Premises.

          (e) Any and all insurance which Tenant is obligated to carry pursuant to Paragraph 15(a) may
be carried under a “blanket” policy or policies covering other properties or liabilities of Tenant
and may be effected by a combination of basic and excess or umbrella policies, provided, that such
“blanket” policy or policies otherwise comply with the provisions of this Paragraph 15. The amount
of total insurance allocated to the Leased Premises, which amount shall not be less than the
amounts required pursuant to this Paragraph 15, shall be specified either (i) in each such
“blanket” policy or (ii) in a written statement, which Tenant shall deliver to Landlord from the
insurer thereunder.

          (f) Tenant shall promptly comply with and conform to (i) all provisions of each insurance
policy and (ii) all requirements of the insurers thereunder, applicable to Landlord, the Credit
Facility Provider, the State, Tenant or the Leased Premises or to the use, manner of use,
occupancy, possession, operation, maintenance, alteration or repair of the Leased Premises, even if
such compliance necessitates structural changes or improvements or results in interference with the
use or enjoyment of any of the Leased Premises. Tenant shall not use the Leased Premises in any
manner which would permit the insurer to cancel any insurance policy unless Tenant obtains, prior
to such cancellation, substitute insurance in accordance with the provisions of this Paragraph 15
which permits such use of the Leased Premises.

          (g) Any loss under any policy of casualty insurance required to be carried by Landlord or
Tenant hereunder (other than on Tenant’s Equipment) shall be made payable to the Credit Facility
Provider or, if references to the Credit Facility Provider shall be ineffective as provided in
Paragraph 38(f), to the State as long as the State Loans are outstanding, and then to such other
party as the Landlord may designate (in any such case, the “Insurance and Award Trustee”) and each
casualty insurer shall be authorized and directed to make payment under said policies directly to
the Insurance and Award Trustee for disbursement in accordance with the provisions of first, the
Deed of Trust, second, the 1997 Deeds of Trust (in the order of priority set forth in the 1997
Lease), and third, this Lease. As used herein, the term “Net Proceeds” means any casualty
insurance proceeds received by Landlord, less Landlord’s expenses and Tenant’s expenses, if any, in
collecting same. The term “Net Proceeds” shall not include proceeds of insurance on Tenant’s
Equipment, which proceeds shall be paid directly to Tenant or the lessor of such Tenant’s
Equipment.

24

 

          (h) Tenant shall not carry separate insurance concurrent in form or continuing in the event of
loss with that required in this Paragraph 15 unless (i) Landlord, the State and the Credit Facility
Provider are included therein as named insureds, with lender’s loss payable endorsements as
provided herein, and (ii) such separate insurance complies with the other provisions of this
Paragraph 15. Tenant shall immediately notify Landlord, the State and the Credit Facility Provider
of such separate insurance and shall deliver to Landlord, the State and the Credit Facility
Provider duplicate original policies therefor. Notwithstanding the foregoing, Tenant may maintain
insurance to compensate Tenant for loss of use of the Additional Improvements.

          (i) The terms and provisions of this Paragraph 15 are subject to the terms and provisions of
the Deed of Trust, the 1997 Deeds of Trust, the 1997 Lease and the State Loan Documents.

     16. Casualty and Restoration.

          (a) In the event of any casualty resulting in damage to the Leased Premises, including any
casualty which renders the entire Leased Premises or a substantial portion thereof unsuitable for
continued use, this Lease shall continue in full force and effect and there shall be no abatement
or reduction of rent payable hereunder.

          (b) Until such time as the Deed of Trust and the 1997 Deeds of Trust shall have been released
and discharged, any Net Proceeds and any Net Award shall be applied either to the restoration or
replacement of the property that was lost or to the redemption of Bonds and payment of the State
Loans, as provided in the Deed of Trust and the 1997 Deeds of Trust.

          (c) Unless there shall have occurred and be continuing an Event of Default hereunder pursuant
to which Landlord is taking action to take possession of the Leased Premises or to terminate this
Lease, or the Net Proceeds or the Net Award are to be used as directed by the Beneficiary as
provided in the Deed of Trust or either of the Beneficiaries as provided in the 1997 Deeds of
Trust, Landlord shall cause the Net Proceeds or Net Award to be held by the Insurance and Award
Trustee in a restoration fund which shall be disbursed as follows:

          (i) If the estimated cost of restoration is less than $100,000, and if prior to
commencement of restoration, no Event of Default or event which would constitute an Event of
Default pursuant to which Landlord is taking action to take possession of the Leased
Premises or to terminate this Lease shall exist and no mechanics’ or materialmen’s liens
shall have been filed and remain undischarged, and if the architects, contracts,
contractors, plans and specifications for the restoration shall have been approved by
Landlord (which approval shall not be unreasonably withheld or delayed), and Landlord shall
be provided with reasonable assurance against mechanics’ liens, accrued or incurred, as
Landlord may reasonably require, and acceptable performance and payment bonds reasonably
acceptable to Landlord in an amount and form having a surety reasonably acceptable to
Landlord, and naming Landlord, the Credit Facility Provider and the State each as additional
obligees; then such proceeds shall be payable to Landlord and made available to Tenant for
application to pay the costs of restoration incurred by Tenant and Tenant shall promptly
complete such restoration.

25

 

          (ii) If the estimated cost of restoration is equal to or exceeds $100,000, and if the
conditions set forth in subparagraph (i) above shall have been satisfied, and if Tenant
provides evidence satisfactory to Landlord, the Credit Facility Provider and the State that
sufficient funds are available to restore the Leased Premises, disbursements shall be made
from time to time in an amount not exceeding the cost of the work completed since the date
covered by the last disbursement, upon receipt of (A) satisfactory evidence, including
architect’s certificates, of the stage of completion, of the estimated cost of completion
and of performance of the work to date in a good and workmanlike manner in accordance with
the contracts, plans and specifications, (B) waivers of liens, (C) contractors’ and
subcontractors’ sworn statements, (D) a satisfactory bring-to-date of title insurance, and
(E) other evidence of cost and payment so that Landlord can verify that the amounts
disbursed from time to time are represented by work that is completed, in place and free and
clear of mechanics’ lien claims.

          (iii) Each request for disbursement shall be accompanied by a certificate of Tenant,
signed by the President or any Vice President of Tenant, describing the work for which
payment is requested, stating the cost incurred in connection therewith and stating that
Tenant has not previously received payment for such work; the certificate to be delivered by
Tenant upon completion of the work shall, in addition, state that the work has been
completed and complies with the applicable requirements of this Lease.

          (iv) Landlord may retain 10% of each requisition against the restoration fund until the
restoration is fully completed subject to reduction of the retained amount upon approval by
the Credit Facility Provider in accordance with local custom;

          (v) The restoration fund shall be invested in an interest bearing account of the
Insurance and Award Trustee;

          (vi) At all times the undisbursed balance of the restoration fund shall be not less
than the cost of completing the restoration work free and clear of all liens; and

          (vii) Landlord may impose other reasonable conditions provided the same are consistent
with those imposed upon such disbursements by the Beneficiary under the Deed of Trust or
either of the Beneficiaries under the 1997 Deeds of Trust. In addition, prior to
commencement of restoration and at any time during restoration, if the estimated cost of
restoration, as determined by the evaluation of an independent engineer acceptable to
Landlord, exceeds the amount of the Net Proceeds or the Net Award available for such
restoration, Tenant will provide evidence satisfactory to Landlord that the amount of such
excess will be available to restore the Leased Premises. Any sum which remains in the
restoration fund upon completion of restoration shall be refunded to Tenant up to the amount
of Tenant’s deposits pursuant to the immediately preceding sentence. If no such refund is
required or any sum remains in the restoration fund after such refund, such sum remaining in
the restoration fund (including the residue of any Net Award in a condemnation remaining
after restoration) upon completion of restoration shall be applied (x) during any period in
which either of the Credit Facilities is in effect,

26

 

to the Landlord’s reimbursement obligations to the Credit Facility Provider to the
extent of any drawings honored by the Credit Facility Provider to pay the redemption price
of Bonds redeemed in accordance with Section 3.1(b) of the Indenture or to pay the purchase
price of Bonds purchased pursuant to Section 4.4 of the Indenture or (y) during any period
in which any Bonds are outstanding, to the redemption of Bonds in accordance with Section
3.1(b) of the Indenture or to the purchase of Bonds as set forth in Section 4.4 of the
Indenture. During any period in which any Bonds are outstanding, any sums remaining in an
amount less than the minimum Authorized Denomination (as defined in the Indenture) shall be
deposited in the Principal Account (as defined in the Indenture). If no Bonds are
outstanding, and either of the Credit Facility Agreements is still in effect, such remaining
sum shall be applied to the Landlord’s Credit Facility Obligations under the Credit Facility
Documents. If no Bonds are outstanding and neither of the Credit Facility Agreements is in
effect, such remaining sum shall be distributed to the State for repayment of the State
Loans and then to Landlord and Tenant in proportion to the value of each party’s interest in
the Leased Premises as determined by mutual agreement.

          (d) Tenant shall be solely responsible for the replacement and/or repair of any of Tenant’s
Equipment damaged by casualty.

          (e) The terms and provisions of this Paragraph 16 are subject to the terms and provisions of
the Deed of Trust, the 1997 Deeds of Trust, the 1997 Lease and the State Loan Documents.

     17. Assignment and Subletting.

          (a) Provided no Event of Default or event which, with the giving of notice or the lapse of
time or both, would constitute an Event of Default, shall have occurred and be continuing, with
prior notice to Landlord, Tenant may sublet all or any part of the Leased Premises to an Affiliate,
or assign this Lease to an Affiliate, which Affiliate will use the Leased Premises for the
Permitted Use. Provided no Event of Default or event which, with the giving of notice or the lapse
of time or both, would constitute an Event of Default, shall have occurred and be continuing, with
the consent of Landlord (which consent shall not be unreasonably withheld), Tenant may sublet all
or any part of the Leased Premises to a Person which is not an Affiliate, or assign this Lease to a
Person which is not a Affiliate, which Person will use the Leased Premises for the Permitted Use.
Notwithstanding the foregoing, in any instance in which Landlord may not unreasonably withhold its
consent, it shall not be unreasonable for Landlord to withhold its consent, or to condition its
consent, if the Credit Facility Provider or the State withholds its consent to any assignment or
subletting, or requires that certain conditions or requirements be satisfied or observed. Tenant
shall give Landlord at least 30 days’ advance written notice of its intention to enter into any
transaction governed by this Paragraph 17, together with such information as Landlord, the Credit
Facility Provider or the State may reasonably request concerning the business and financial
background of the proposed subtenant or assignee. Within 10 days after the execution and delivery
of any assignment or sublease permitted pursuant to this Paragraph 17, Tenant shall deliver a
conformed copy thereof to Landlord, and within 10 days after the execution and delivery of any
permitted sublease, Tenant shall give notice to Landlord of the existence and term thereof, and of
the name and address of the sublessee thereunder.

27

 

          (b) If Tenant assigns all its rights and interests under this Lease, the assignee under such
assignment shall expressly assume all the obligations of Tenant hereunder in a written instrument
delivered to Landlord at the time of such assignment. No assignment or sublease shall affect or
reduce any of the obligations of Tenant hereunder, and all such obligations shall continue in full
effect as obligations of a principal and not as obligations of a guarantor or surety, to the same
extent as though no assignment or subletting had been made. No assignment or sublease shall impose
any obligations on Landlord beyond those of Landlord under this Lease or otherwise affect any of
the rights of Landlord under this Lease. Any assignment or subletting, Landlord’s consent thereto,
or Landlord’s collection or acceptance of rent from any assignee or subtenant shall not be
construed either as waiving or releasing Tenant from any of its liabilities or obligations under
this Lease, or as relieving Tenant or any assignee or subtenant from the obligation of obtaining
Landlord’s prior written consent to any subsequent assignment or subletting.

          (c) Upon the occurrence of an Event of Default under this Lease, Landlord shall have the right
to collect and enjoy all rents and other sums of money payable under any sublease of any of the
Leased Premises, and Tenant hereby irrevocably and unconditionally assigns such rents and money to
Landlord, which assignment may be exercised upon and after (but not before) the occurrence of an
Event of Default. From and after the date, if any, that such Event of Default is cured, such rents
shall again become payable to Tenant and the excess, if any, of the sublease rents collected by
Landlord over the amount thereof applied toward Tenant’s obligations under this Lease shall be paid
to Tenant.

          (d) All restrictions and obligations imposed pursuant to this Lease on Tenant shall be deemed
to extend to any subtenant or assignee, and Tenant shall cause such Person to comply with such
restrictions and obligations. Each sublease is subject to the condition that if the Term is
terminated or Landlord succeeds to Tenant’s interest in the Leased Premises by voluntary surrender
or otherwise, at Landlord’s option the subtenant shall be bound to Landlord for the balance of the
term of such sublease and shall attorn to and recognize Landlord as its landlord under the then
executory terms of such sublease.

     18. Permitted Contests. Notwithstanding any other provision of this Lease to the
contrary, Tenant shall not be required to (i) pay any Imposition, or (ii) discharge or remove any
lien, encumbrance or charge referred to in Paragraph 10 or 12, so long as Tenant shall contest, in
good faith and at its expense, the existence, the amount or the validity thereof, the amount of the
damages caused thereby, or the extent of its liability therefor, by appropriate proceedings,
provided that such contest shall operate at all times during the pendency thereof to prevent (i)
the collection of, or other realization upon, the sums payable to satisfy any Imposition or lien,
encumbrance or other charge so contested, (ii) the sale, forfeiture or loss of the Leased Premises,
or any part thereof, or any interest therein or Basic Rent or any Additional Rent, or any portion
thereof, (iii) any interference with the use or occupancy of the Leased Premises or any part
thereof, (iv) any interference with the payment of Basic Rent or any Additional Rent, or any
portion thereof, (v) the cancellation of any fire or other insurance policy, unless such policy is
replaced prior to its cancellation by another policy complying with the provisions of this Lease,
and (vi) the imposition of any civil or criminal liability upon Landlord. While any such
proceedings are pending, Landlord shall not have the right to pay, remove or cause to be discharged
the tax, assessment, levy, fee, rent or charge or lien, encumbrance or charge thereby

28

 

being contested, provided that Landlord shall have the right to require Tenant to establish
reasonable reserves for such liabilities being contested if the Landlord reasonably determines such
reserves to be necessary. Tenant further agrees to give Landlord prompt notice of Tenant’s
intention to contest any Imposition and that each such contest shall be promptly prosecuted to a
final conclusion. Tenant will pay, and save Landlord harmless against, any and all losses,
judgments, decrees and costs (including all reasonable attorneys’ fees and expenses) in connection
with any such contest and will, promptly after the final settlement, compromise or determination of
such contest, fully pay and discharge the amounts which shall be levied, assessed, charged or
imposed or be determined to be payable therein or in connection therewith, together with all
penalties, fines, interests, costs and expenses thereof or in connection therewith, and perform all
acts the performance of which shall be ordered or decreed as a result thereof.

     19. Default Provisions.

          (a) Any of the following occurrences or acts shall constitute an Event of Default under this
Lease:

          (i) Tenant fails to pay, within 5 days after notice from Landlord or any of its
assignees to Tenant, any installment of Basic Rent.

          (ii) Tenant fails to pay any payment of Additional Rent, or any other payment required
to be paid by Tenant hereunder, including, without limitation, payment of Impositions and
insurance premiums, and such failure continues for 30 days after written notice thereof
shall have been given to Tenant by Landlord.

          (iii) Tenant fails to observe or perform any other provision hereof for 30 days (or
such shorter period of time as Landlord may reasonably determine if such default endangers
life or property) after Landlord shall have delivered to Tenant written notice (except in
the case of an emergency) of such failure (provided that, in the case of any default
referred to in this clause (iii) which does not endanger life or property and which cannot
with diligence be cured within such 30 day period, if Tenant shall proceed promptly to cure
the same and thereafter shall prosecute the curing of such default with diligence, then upon
receipt by Landlord of a certificate from an authorized officer of Tenant stating the reason
that such default cannot be cured within 30 days and stating that Tenant is proceeding with
diligence to cure such default, the time within which such failure may be cured shall be
extended for such additional period as may be necessary to complete the curing of the same
with diligence.

          (iv) An Act of Bankruptcy occurs with respect to Tenant, or Tenant becomes generally
unable to pay its debts as they become due; provided, however, if a proceeding with respect
to an Act of Bankruptcy is filed or commenced against Tenant, the same shall not constitute
an Event of Default if such proceeding is dismissed within 90 days from the date of such Act
of Bankruptcy.

          (v) Default is made (A) with respect to any evidence of indebtedness of liability for
borrowed money of Tenant to the Credit Facility Provider, or (B) with respect to any
evidence of indebtedness or liability of Tenant to any other Person for

29

 

borrowed money or pursuant to a lease obligation, if the effect of such default
described in clause (A) or (B) above is to accelerate the maturity of such evidence of
indebtedness or liability prior to its stated maturity (whether automatically, following an
election by the holder or obligee thereof to accelerate, or otherwise) or any such
indebtedness is not paid as and when due and payable; provided, however, that it shall not
constitute an Event of Default if the outstanding principal balance of such indebtedness or
liability of Tenant to any Person other than the Credit Facility Provider or the State is
not in excess of $1,000,000 or Tenant certifies to the Credit Facility Provider and the
State that it is contesting such default in good faith and by appropriate and diligent
proceedings.

          (vi) Any amendment to this Lease shall have been made without the prior written consent
of the Credit Facility Provider and the State, which consent shall not be unreasonably
withheld, conditioned or delayed, and, except for material changes which would require the
consent or approval of the State Board of Public Works or the State Legislative Policy
Committee, which consent shall be deemed given by the Credit Facility Provider or the State
if the Credit Facility Provider or the State does not object to any proposed amendment
within 15 business days after the receipt thereof by the Credit Facility Provider or the
State.

          (vii) Tenant abandons the Leased Premises.

          (viii) The interest of Tenant in the Leased Premises or any part thereof shall be
assigned or subleased in violation of Paragraph 17, or shall be levied upon or attached in
any proceeding involving a claim in excess of $1,000,000 and such proceeding is not vacated,
discharged or bonded against to the reasonable satisfaction of Landlord, the Credit Facility
Provider and the State within 30 days thereafter.

          (ix) Any representation or warranty made by Tenant or its representatives in this Lease
or any of the Lease Documents executed and delivered by Tenant or any statement or
representation made by Tenant or its representatives in any certificate, report or opinion
(including legal opinions) financial statement or other instrument furnished in connection
with this Lease or any of the Lease Documents executed and delivered by Tenant proves to
have been incorrect, false or misleading in any material respect when made.

          (x) Any judgment against Tenant or any attachment or other levy against the property of
Tenant with respect to a claim for an amount in excess of $1,000,000 remains unpaid,
unstayed on appeal, undischarged, unbonded or undismissed for a period of 60 days.

          (xi) Tenant fails to comply with any material requirement of any governmental authority
having jurisdiction over the Leased Premises within the time required by such governmental
authority; or any proceeding is commenced or action taken to enforce any remedy for a
violation of any material requirement of a governmental authority or any restrictive
covenant affecting the Leased Premises or any part thereof; provided, however, it shall not
constitute an Event of Default if Tenant is

30

 

contesting the validity or applicability of any such requirement or covenant, at its
sole cost and expense, in good faith and by appropriate and diligent proceedings.

          (xii) If any material provision of this Lease at any time for any reason ceases to be
valid and binding on Tenant, or is declared to be null and void, or the validity or
enforceability thereof is contested by Tenant or any governmental agency or authority, or
Tenant denies that it has any further liability or obligation under this Lease or any of the
Lease Documents executed and delivered by Tenant.

          (xiii) Landlord, the Credit Facility Provider or the State, or any of their respective
representatives are not permitted, at all reasonable times (after at least 48 hours prior
written notice to Tenant, unless an Event of Default shall have occurred and be continuing
in which event notice will not be required), to enter upon the Leased Premises, to inspect
the Leased Premises and all materials, equipment, fixtures and other items used or to be
used in the construction thereof, and to examine all detailed plans, shop drawings and
specifications which relate to or the appurtenances thereto or to be used in the operation
thereof, provided, however, any person conducting such inspection shall comply with Tenant’s
safety and operating policies and procedures.

          (xiv) An Event of Default (as defined in the 1997 Lease) occurs under the 1997 Lease.

          (b) If an Event of Default shall have happened and be continuing, Landlord shall have the
right at its election, then or at any time thereafter while such Event of Default shall continue,
to give Tenant written notice of Landlord’s intention to terminate this Lease on a date specified
in such notice (such termination being hereinafter referred to as a “Default Termination” and such
notice being hereinafter referred to as a “Default Termination Notice”). Upon giving a Default
Termination Notice, the Term and the estate hereby granted shall terminate on the date specified in
the Default Termination Notice as fully and completely and with the same effect as if such date
were the date hereinbefore fixed for the expiration of the Term, and all rights of Tenant hereunder
shall terminate, but Tenant shall remain liable as hereinafter provided. Notwithstanding the
foregoing, no Default Termination Notice shall be effective unless it is also executed by the
Credit Facility Provider.

          (c) If an Event of Default shall have happened and be continuing, Landlord shall have the
immediate right, whether or not the Term shall have been terminated pursuant to Paragraph 19(b), to
re-enter and repossess the Leased Premises or any part thereof by force (if legally permitted in
the State of Maryland), summary proceedings, ejectment or otherwise and the right (subject to the
rights and interests of equipment lessors) to remove all Persons and property therefrom. Landlord
shall be under no liability for or by reason of any such entry, repossession or removal. No such
re-entry or taking of possession of the Leased Premises by Landlord shall be construed as an
election on Landlord’s part to terminate this Lease unless a Default Termination Notice shall have
been given to Tenant, or unless the termination of this Lease be finally decreed by a court of
competent jurisdiction.

          (d) At any time or from time to time after the repossession of the Leased Premises or any part
thereof pursuant to Paragraph 19(c), whether or not this Lease shall have

31

 

been terminated pursuant to Paragraph 19(b), Landlord shall use reasonable efforts to relet
the Leased Premises or any part thereof for the account of Tenant or Landlord or otherwise, without
notice to Tenant, for such term or terms and on such conditions (which may include concessions of
free rent) and for such uses as Landlord, in its absolute discretion, may determine, and Landlord
may collect and receive any rents payable by reason of such reletting. Landlord shall not be
responsible or liable for any failure to relet the Leased Premises or any part thereof or for any
failure to collect any rent due upon any such reletting.

          (e) In the event of the termination of this Lease upon an Event of Default or repossession of
the Leased Premises or any part thereof pursuant to Paragraph 19(c) or otherwise, or the reletting
of the Leased Premises or any part thereof pursuant to Paragraph 19(d), Tenant shall remain liable
as hereinafter provided.

          (f) In the event of any Default Termination or repossession of the Leased Premises or any part
thereof by reason of the occurrence of an Event of Default, Tenant will pay to Landlord Basic Rent,
Additional Rent and other sums required to be paid by Tenant to and including the date of such
termination or repossession (including, without limitation, the amount of all sums which have
become due and payable by Landlord under the Credit Facility Documents and the Bond Documents and
the State Loan Documents); and, thereafter, Tenant shall, until the end of what would have been the
Term in the absence of such termination or repossession, and whether or not the Leased Premises or
any part thereof shall have been relet, be liable to Landlord for, and shall pay to Landlord, as
liquidated and agreed current damages on each Basic Rent Payment Date and on any other date when
due and payable: (i) Basic Rent, Additional Rent and other sums which would be payable under this
Lease by Tenant in the absence of such termination or repossession, less (ii) the net proceeds, if
any, of any reletting effected for the account of Tenant pursuant to Paragraph 19(d), after
deducting from such proceeds all Landlord’s expenses in connection with such reletting (including,
without limitation, all repossession costs, brokerage commissions, legal expenses, attorneys’ fees,
employees’ expenses, alteration costs and expenses of preparation for such reletting). Tenant will
pay such current damages on the days on which Basic Rent would have been payable under this Lease
in the absence of such termination or repossession, and Landlord shall be entitled to recover the
same from Tenant on each such day.

          (g) At any time after a Default Termination, Landlord shall be entitled to recover from
Tenant, and Tenant will pay to Landlord within 120 days of demand therefor, an amount equal to
Basic Rent, Additional Rent and other sums which would be payable under this Lease, from the date
to which Tenant shall have satisfied in full its obligations under Paragraph 19(f) to pay current
damages, to the end of the remaining Term of this Lease in the absence of such termination
(assuming, in computing the amount of Basic Rent that would have been due under Paragraph 7, an
interest rate which is equal to the rate applicable to such obligations on the date the Default
Termination Notice is issued “the “Assumed Rate”), discounted at the Assumed Rate, or such lower
rate as shall be necessary to provide that the sum payable by Tenant hereunder shall satisfy in
full the sum of (I) all “Landlord’s Credit Facility Obligations” and “Landlord’s Bond Obligations”
accrued through the date of the payment due under this Paragraph 19(g), including without
limitation, all accrued fees, costs and expenses payable to the Trustee, the Remarketing Agent, the
Rating Agency and the Credit Facility Provider, plus (II) all

32

 

costs and expenses (including reasonable attorneys’ fees and expenses) of the Credit Facility
Provider and Landlord in connection with such Default Termination.

          (h) The words “enter”, “re-enter” or “re-entry”, as used in this Paragraph 19, are not
restricted to their technical meaning.

          (i) An Event of Default (as defined in this Lease) under this Lease shall constitute an Event
of Default (as defined in the 1997 Lease) under the 1997 Lease; and an Event of Default (as defined
in the 1997 Lease) under the 1997 Lease shall constitute an Event of Default (as defined in this
Lease) under this Lease.

     20. Additional Rights of Landlord.

          (a) No right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy given hereunder or now or hereafter existing at Law or in
equity. The failure of either party to insist at any time upon the strict performance of any
covenant or agreement or to exercise any option, right, power or remedy contained in this Lease
shall not be construed as a waiver or a relinquishment thereof for the future. A receipt by
Landlord of any Basic Rent, Additional Rent or any other sum payable hereunder with knowledge of
the breach of any covenant or agreement contained in this Lease shall not be deemed a waiver of
such breach, and no waiver of any provision of this Lease shall be deemed to have been made unless
expressed in writing and signed by the waiving party. In addition to other remedies provided in
this Lease, Landlord shall be entitled, to the extent permitted by applicable law, to injunctive
relief in case of the violation, or attempted or threatened violation, of any of the covenants,
agreements, conditions or provisions of this Lease, or to a decree compelling performance of any of
the covenants, agreements, conditions or provisions of this Lease, or to any other remedy allowed
to Landlord at Law or in equity.

          (b) Tenant hereby waives and surrenders, to the extent not prohibited by Law, for itself and
all those claiming under it, including creditors of all kinds, (i) any right and privilege which it
or any of them may have under any present or future Law to redeem the Leased Premises or to have a
continuance of this Lease for the Term after termination of Tenant’s right of occupancy by order or
judgment of any court or by any legal process or writ, or under the terms of this Lease, or after
the termination of the Term as herein provided, and (ii) the benefits of any present or future law
which exempts property from liability for debt or for distress for rent.

          (c) In the event Tenant shall be in default in the performance of any of its obligations under
this Lease, and an action shall be brought for the enforcement thereof in which it shall be
determined that Tenant was in default, Tenant shall pay to Landlord all the expenses incurred in
connection therewith including reasonable attorney’s fees. In the event Landlord shall, without
fault on its part, be made a party to any litigation commenced against Tenant, and if Tenant, at
its expense, shall fail to provide Landlord with counsel reasonably approved by Landlord, Tenant
shall pay all costs and reasonable attorney’s fees incurred or paid by Landlord in connection with
such litigation.

33

 

          (d) If an Event of Default has happened and is continuing, Landlord may, but shall not be
obligated to, make any payment or perform any act required hereunder to be made or performed by
Tenant which has not been performed within the time period specified herein for such performance,
with the same effect as if made or performed by Tenant, provided that no entry by Landlord upon the
Leased Premises for such purpose shall create any liability to Tenant on the part of Landlord or
shall constitute or shall be deemed to be an eviction of Tenant, and no such entry shall waive or
release Tenant from any obligation or default hereunder. All sums so paid by Landlord and all
costs and expenses (including reasonable attorney’s fees and expenses) incurred by Landlord in
connection with the performance of any such act, together with interest at the Default Rate, shall
constitute Additional Rent payable by Tenant hereunder.

     21. Inspection. Tenant shall permit Landlord, the Credit Facility Provider, the
State, and the holder of any Encumbrance, and its and their representatives and agents to enter the
Leased Premises, with notice to Tenant and with an escort provided by Tenant, unless (i) an Event
of Default shall have occurred and be continuing, or (ii) an emergency threatening life or property
exists, in either of which cases, no advance notice shall be required, without charge therefor and
without diminution of the rent payable by Tenant, in order to examine, inspect and protect the
Leased Premises, or, during the last year of the Term, to exhibit the same to brokers, prospective
tenants, lenders, purchasers and others. In connection with any such entry, Landlord shall
endeavor to minimize the disruption to Tenant’s normal business operations in the Leased Premises.

     22. Notices, Demands and Other Instruments. All notices, demands, requests, consents,
approvals, certificates or other communications required under this Lease shall be in writing, and
shall be sufficiently given and shall be deemed to have been properly given (i) if delivered by
hand, when written confirmation of delivery is received by the sender, (ii) three days after the
same is mailed by certified mail, postage prepaid, return receipt requested, or (iii) if sent by
overnight courier, 24 hours (plus 24 hours for any intervening day that is not a business day)
after delivery to such overnight courier addressed to the Person to whom any such notice, demand,
request, consent, approval, certificate or other communication is to be given, at .the appropriate
address designated on Exhibit E attached hereto. Any party listed on Exhibit E
shall each have the right from time to time to specify as its address for purposes of this Lease
any other address in the United States of America upon giving 15 days’ written notice hereunder.

     23. Estoppel Certificates. Landlord or Tenant, as the case may be, shall, at any time
and from time to time, upon not less than 20 days’ prior written notice by the other (but neither
shall be required to do so more than twice in any calendar year), execute, acknowledge and deliver
to the requesting party a statement in writing, executed by an authorized representative of
Landlord or by the President or a Vice President of Tenant, as the case may be, certifying (i) that
this Lease is unmodified and in full effect (or, if there have been modifications, that this Lease
is in full effect as modified, and setting forth such modifications), (ii) the dates to which Basic
Rent, Additional Rent and all other sums payable hereunder have been paid, (iii) that to the
knowledge of the signer of such certificate no default by either Landlord or Tenant exists
hereunder or specifying each such default of which the signer may have knowledge; and (iv) that, in
the case of any statement being given by Tenant, to the knowledge of the signer of such
certificate, there are no proceedings pending or threatened against Tenant before or by any court
or administrative agency which, if adversely decided, would materially and adversely affect the

34

 

financial condition and operations of Tenant or Tenant’s ability to perform or fulfill its
obligations under this Lease, or if any such proceedings are pending or threatened to said signer’s
knowledge, specifying and describing the same. It is intended that any such statements may be
relied upon by the Credit Facility Provider, the State, Landlord or their assignees or by any
prospective purchaser of the Leased Premises or by any transferee or assignee of Tenant’s interest
in the Lease or a sublessee of Tenant or by any party providing financing to Tenant. Any
certificate required under this Paragraph 23 shall (i) state briefly the nature and scope of the
examination or investigation upon which the statements contained in such certificate are based,
(ii) state that in the opinion of each Person signing such certificate he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to the subject
matter of such certificate, and (iii) certify to the correctness of the statements contained
therein.

     24. No Merger. There shall be no merger of this Lease or of the leasehold estate
hereby created with any other estate or interest in the Leased Premises or any part thereof by
reason of the fact that the same Person may acquire or hold, directly or indirectly, (a) any
interest in this Lease or the leasehold estate hereby created or (b) any such other estate or
interest in the Leased Premises or any part.

     25. Representations and Warranties of Tenant. Tenant makes the following
representations and warranties to Landlord:

          (a) Good Standing. Tenant (i) is a corporation duly organized and existing, in good
standing, under the laws of the State of Delaware, (ii) has the corporate power and all material
governmental licenses, authorizations, consents and approvals required to own its property and to
carry on its business as now being conducted, and (iii) is duly qualified to do business and is in
good standing in each jurisdiction in which the character of the properties owned by it therein or
in which the transaction of its business makes such qualification necessary, including, but not
limited to, the State of Maryland.

          (b) Authority. Tenant has full corporate power and authority to enter into and
execute and deliver this Lease and each of the other documents executed and delivered by Tenant in
connection herewith (collectively, the “Lease Documents”), and to incur and perform the obligations
provided for therein and herein, all of which have been duly authorized by all proper and necessary
corporate action by Tenant. No consent or approval of stockholders or of any other Person or
public authority or regulatory body is required as a condition to the validity or enforceability of
this Lease or any of the other Lease Documents, or if required the same has been duly obtained.

          (c) Binding Agreements. This Lease and each of the other Lease Documents have been
duly and properly executed by Tenant, constitute the valid and legally binding obligations of the
Tenant, and are fully enforceable against Tenant in accordance with their respective terms; except
to the extent that enforceability may be affected by any bankruptcy or insolvency proceeding filed
by or against the Tenant and subject to the exercise of judicial discretion in accordance with
general principles of equity.

          (d) Litigation. There is no litigation or proceeding pending or, so far as Tenant
knows, threatened, before any court or administrative agency which, in the opinion of

35

 

Tenant, will materially adversely affect the financial condition or operations of Tenant,
Tenant’s ability to perform and fulfill its obligations under this Lease, or the authority of
Tenant to enter into, or the validity or enforceability of, this Lease or any of the other Lease
Documents.

          (e) No Conflicting Agreements, Laws, etc. There is (i) no charter, by-law or
preference stock provision of the Tenant and no provision of any existing mortgage, indenture,
contract or agreement binding on the Tenant or affecting Tenant’s property, and (ii) to the
knowledge of Tenant, no provision of Law or order of court binding on the Tenant or affecting any
of Tenant’s property, which would conflict with or in any way prevent the execution, delivery, or
performance of the terms of this Lease or any of the other Lease Documents, or which would be in
default or violated as a result of such execution, delivery or performance, or for which adequate
consents or waivers have not been obtained.

          (f) Tax Returns. Tenant has filed all required federal, state and local tax returns
and has paid all taxes as shown on such returns as they have become due. No claims have been
assessed and are unpaid with respect to such taxes, and Tenant has established reserves which it
believes to be adequate for the payment of additional taxes for years which have not been audited
by the respective tax authorities.

          (g) Place of Business of Tenant. Tenant’s principal place of business is located at
14200 Shady Grove Road, Rockville, Maryland 20850.

          (h) Brokers. To the best of Tenant’s knowledge (other than Scheer Partners Inc.), no
Person has, or as a result of any action of or by Tenant in connection with the transactions
contemplated hereby and by the Lease will have, any right, interest or valid claim against or on
the Landlord for any commission, fee or other compensation as a broker or finder, or in any similar
capacity. Tenant shall indemnify the Landlord against any claimed fee, commission or other
compensation arising from or in connection with the transactions contemplated hereby or by the
Lease Documents.

          (i) ERISA. (i) Any Plan established and maintained by the Tenant or any Commonly
Controlled Entity is a qualifying plan under the applicable requirements of Section 401 of the Code
and there is no current matter which would materially adversely affect the qualified tax-exempt
status of any Plan; (ii) neither the Tenant nor any Commonly Controlled Entity has engaged in or is
engaging in any Prohibited Transaction or has incurred any Accumulated Funding Deficiency in
connection with any such Plan, whether or not waived, and no Reportable Event has occurred with
respect to any Plan subject to the minimum funding requirements of Section 412 of the Code; (iii)
no Multiemployer Plan has “terminated”, as that term is defined in ERISA; (iv) neither the Tenant
nor any Commonly Controlled Entity has “withdrawn” or “partially withdrawn” from any Multiemployer
Plan; and (v) no Multiemployer Plan is in “reorganization” nor has notice been received from the
administrator of any Multiemployer Plan that any such Plan will be placed in “reorganization”.

     26. Affirmative Covenants of Tenant. Tenant shall:

          (a) Reporting Requirements. Furnish or cause to be furnished to Landlord:

36

 

          (i) as soon as available but in no event more than 45 days after the filing with the
Securities and Exchange Commission (the “SEC”), a copy of the 10Q Report of Tenant filed
with the SEC accompanied by a certificate of the chief financial officer of Tenant stating
whether any event has occurred which constitutes an Event of Default, or which would
constitute such an Event of Default with the giving of notice or the lapse of time or both,
and, if so, stating the facts with respect thereto; and

          (ii) as soon as available but in no event more than 120 days after the close of each
fiscal year of Tenant, a copy of the 10K Report of Tenant filed with the SEC and a copy of
the annual audited financial statements relating to Tenant prepared in accordance with GAAP,
which financial statements shall include a balance sheet of Tenant as at the end of such
fiscal year and a statement of earnings and changes in stockholder’s equity of Tenant for
such fiscal year; and

          (iii) as soon as available but in no event more than 90 days after the close of each
fiscal year of Tenant, a certificate of the chief financial officer of Tenant stating
whether any event which constitutes an Event of Default under this Lease has occurred, or
any event which would constitute such an Event of Default with the giving of notice or the
lapse of time or both has occurred, and, if so, stating the facts with respect thereto; and

          (iv) promptly upon transmission thereof, copies of any financial statements, proxy
statements, reports and the like which Tenant sends to its shareholders and copies of all
registration statements (with exhibits); and

          (v) [INTENTIONALLY OMITTED]

          (vi) [INTENTIONALLY OMITTED]

          (vii) [INTENTIONALLY OMITTED]

          (viii) with reasonable promptness, such budgets, cash flow projections, financial
forecasts and other additional information, reports or statements as Landlord or the Credit
Facility Provider may from time to time reasonably request.

          (b) Taxes and Claims. Pay and discharge or cause to be paid and discharged all taxes
imposed upon it or its income or properties prior to the date on which penalties attach thereto,
and all lawful claims which, if unpaid, might become a lien or charge upon any of its properties.
Tenant shall have the right to contest the validity of any such tax, assessment, charge, levy or
claim, by timely and appropriate proceedings, provided that Tenant shall (1) give Landlord written
notice of its intention to contest, (2) diligently prosecute such contest, (3) at all times
effectively stay or prevent any official or judicial sale of the Leased Premises or Building
Equipment or any part thereof by reason of nonpayment of any such taxes, and (4) establish
reasonable reserves for such liabilities being contested if Landlord reasonably determines such
reserves to be necessary.

          (c) Insurance. In addition to the insurance required by Paragraph 15 of this Lease,
maintain insurance with responsible insurance companies on such of its properties, in

37

 

such amounts and against such risks as is customarily maintained by similar businesses
operating in the same vicinity. Tenant shall file with Landlord, upon its request, a detailed list
of the insurance then in effect covering Tenant and Tenant’s properties, stating the names of the
insurance companies, the amounts and rates of the insurance, dates of the expiration thereof and
the properties and risks covered thereby; and, within 30 days after notice in writing from the
Landlord, obtain such additional insurance as the Landlord may reasonably request.

     (d) Corporate Existence. Maintain its existence in good standing as a Delaware
corporation, qualified to transact business in the State of Maryland.

     (e) Compliance with Laws. Comply with all Legal Requirements, subject to Tenant’s
right to contest the validity or applicability of any of the foregoing, at its sole cost and
expense, in good faith and by appropriate and diligent proceedings, in accordance with Paragraph 18
hereof.

     (f) Books and Records. Maintain appropriate books and records with respect to the
Leased Premises and permit access by Landlord, the Credit Facility Provider and the State and their
respective authorized representatives and employees to the books and records of Tenant at the
offices of Tenant during normal business hours.

     (g) Employment Count. Within 30 days after the Rent Commencement Date and on each
anniversary date thereafter, and upon subsequent request of Landlord or the State, Tenant shall
supply Landlord and the State with the employment count at the Leased Premises.

     (h) Equal Employment. Tenant shall prohibit discrimination on the basis of (i)
political or religious opinion or affiliation, marital status, race, color, creed, or national
origin, or (ii) sex or age, except when sex or age constitutes a bona fide occupational
qualification, or (iii) the physical or mental disability of a qualified individual with a
disability; and shall, upon the request of the State Department of Business and Economic
Development (the “Department”), submit information relating to its employment practices and
operations with regard to the above on a form to be prescribed by the Department.

     (i) Drug and Alcohol Free Workplace. Tenant shall make a good faith effort to
eliminate illegal drug use and alcohol and drug abuse from its workplace during the Term and
specifically, shall:

          (i) prohibit the unlawful manufacture, distribution, dispensation, possession, or use
of drugs in its workplace;

          (ii) prohibit its employees from working under the influence of alcohol or drugs;

          (iii) not hire or assign to work on an activity funded in whole or part with State of
Maryland funds, anyone whom it knows, or in the exercise of due diligence should know,
currently abuses alcohol or drugs and is not actively engaged in a bona fide rehabilitation
program;

38

 

          (iv) promptly inform the appropriate law enforcement agency of every drug related crime
that occurs in its workplace if it or its employee has observed the violation or otherwise
has reliable information that a violation has occurred; and

          (v) notify employees that drug and alcohol abuse is banned in the workplace, impose
sanctions on employees who abuse drugs and alcohol in the workplace, and institute steps to
maintain a drug and alcohol free workplace.

          (j) [INTENTIONALLY OMITTED]

          (k) Cooperate in connection with any appraisal of the Leased Premises conducted by or at the
request of Landlord, the Credit Facility Provider or the State.

     27. Negative Covenants of Tenant. Until all of Tenant’s obligations under this Lease
have been paid and performed in full (other than any indemnities which survive the termination of
this Lease), without the prior written consent of Landlord, Tenant shall not, directly or
indirectly:

          (a) Declare any dividends (other than dividends payable in capital stock of Tenant) on any
shares of any class of its capital stock (other than preferred stock outstanding as of December 1,
1999) or apply any of its property or assets to the purchase, redemption or other retirement of, or
set apart any sum for the payment of any dividends on, or for the purchase, redemption or other
retirement of, or make any other distribution by reduction of capital or otherwise in respect of,
any shares of any class of capital stock of Tenant unless (i) there is no Event of Default which
has occurred and is continuing, and (ii) the amount of the dividend does not exceed Tenant’s
accumulated earnings at that time.

          (b) [INTENTIONALLY OMITTED].

          (c) (i) Restate or amend any Plan established and maintained by Tenant or any Commonly
Controlled Entity and subject to the requirements of ERISA, in a manner designed to disqualify such
Plan and its related trusts under the applicable requirements of the Code; (ii) permit any officers
of Tenant or any Commonly Controlled Entity to materially adversely affect the qualified tax-exempt
status of any Plan or related trusts of Tenant or any Commonly Controlled Facility under the Code;
(iii) engage in or permit any Commonly Controlled Entity to engage in any Prohibited Transaction;
(iv) incur or permit any Commonly Controlled Entity to incur any Accumulated Funding Deficiency,
whether or not waived, in connection with any Plan; (v) take or permit any Commonly Controlled
Entity to take any action or fail to take any action which causes a termination of any Plan in a
manner which could result in the imposition of a lien on the property of Tenant or any Commonly
Controlled Entity pursuant to Section 4068 of ERISA; (vi) fail to notify the Credit Facility
Provider that notice has been received of a “termination” (as defined in ERISA) of any
Multiemployer Plan to which Tenant or any Commonly Controlled Entity has an obligation to
contribute; (vii) incur or permit any Commonly Controlled Entity to incur a “complete withdrawal”
or “partial withdrawal” (as defined in ERISA) from any Multiemployer Plan to which Tenant or any
Commonly Controlled Entity has an obligation to contribute; or (viii) fail to notify the Credit
Facility Provider that notice has been received from the administrator of any Multiemployer Plan to
which Tenant or

39

 

any Commonly Controlled Entity has an obligation to contribute that any such Plan will be
placed in “reorganization” (as defined in ERISA).

     28. Non-Recourse. Anything contained herein to the contrary notwithstanding, any
claim based on or in respect of any liability of Landlord under this Lease shall be enforced only
against Landlord’s interest in the Leased Premises (subject to the lien of the Deed of Trust and
the 1997 Deeds of Trust) and not against any other assets, properties or funds of Landlord or
against any assets, properties or funds of (i) any employee or agent of Landlord (or any director,
officer, legal representative, successor, or assign of any thereof), or (ii) any other Person
affiliated with any of the foregoing, including without limitation, the State of Maryland or any
department, agency or instrumentality thereof.

     Notwithstanding any other provision set forth in this Lease or in any other agreement or
document executed in connection with or relating to this Lease:

          (a) No provision of this Lease or of any other agreement or document executed in connection
with or relating to this Lease shall be construed so as to give rise to any monetary or pecuniary
liability of Landlord or of the State of Maryland, or any political subdivision or agency thereof,
or to give rise to a charge upon the general credit of Landlord or of the State of Maryland, or any
political subdivision or agency thereof, and any claim based on or in respect of any liability of
Landlord under this Lease shall be enforced only as set forth above in this Paragraph 28.

          (b) Neither this Lease nor any other agreement or document executed in connection with or
relating to this Lease nor any claim hereunder or thereunder shall (i) constitute a debt of
Landlord or of the State of Maryland, or any political subdivision or agency thereof, or a pledge
of the full faith and credit or taxing power of the State of Maryland, or any political subdivision
or agency thereof, or (ii) create any monetary liability on, or obligate Landlord or the State of
Maryland, or any political subdivision or agency thereof, to make any appropriation for payment.
Landlord has no taxing power.

          (c) The liability of Landlord under this Lease and under any other agreement or document
executed in connection with or relating to this Lease shall be non-recourse to Landlord, limited as
set forth above in this Paragraph 28; and the lien of any judgment shall be restricted to only
Landlord’s interest in the Leased Premises (subject to the lien of the Deed of Trust and the 1997
Deeds of Trust), and not against any other assets, properties or funds of Landlord or against any
assets, properties or funds of (i) any employee or agent of Landlord (or any director, officer,
legal representative, successor, or assign of any thereof), or (ii) any other Person affiliated
with any of the foregoing, including without limitation, the State of Maryland or any department,
agency or instrumentality thereof; and Landlord shall have no other liability, legal, moral or
otherwise, to Tenant, or any other person, in connection with the Land, the Improvements, the
Leased Premises, this Lease, or any other agreement or document executed in connection with or
relating to this Lease. In no event shall Landlord be required to pay any claim under this Lease
or under any other agreement or document executed in connection with or related to this Lease from
any of its own funds.

40

 

          (d) Landlord shall not be required to do any act whatsoever or exercise any diligence
whatsoever, other than to perform its limited obligations under the Lease Documents, the Bond
Documents and the Credit Facility Documents, to mitigate any damages of Tenant or any other person,
if any Event of Default shall occur under this Lease or any other agreement or document executed in
connection with or relating to this Lease.

     29. Separability. Each and every covenant and agreement contained in this Lease is,
and shall be construed to be, a separate and independent covenant and agreement, and the breach of
any such covenant or agreement by Landlord shall not discharge or relieve Tenant from any of its
obligations under this Lease. If any term or provision of this Lease or the application thereof to
any Person or circumstances shall to any extent be invalid and unenforceable, the remainder of this
Lease, or the application of such term or provision to persons or circumstances other than those as
to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision
of this Lease shall be valid and shall be enforced to the extent permitted by Law.

     30. Subordination.

          (a) This Lease is subject and subordinate to the lien, provisions, operation and effect of the
Deed of Trust and 1997 Deeds of Trust or other security instruments which may now or hereafter
encumber the Improvements or the Land or any interest therein (collectively, “Encumbrances”), to
all funds and indebtedness intended to be secured thereby, and to all renewals, extensions,
modifications, recastings or refinancings thereof. The holder of any Encumbrance to which this
Lease is subordinate shall have the right (subject to any required approval of the holders of any
superior Encumbrance) at any time to declare this Lease to be superior to the lien, provisions,
operation and effect of such Encumbrance, and Tenant shall execute, acknowledge and deliver all
documents required by such holder in confirmation thereof. Prior hereto, Landlord, Tenant and the
State have executed the State Loan Assignment, and simultaneous with the execution hereof,
Landlord, Tenant and the Bank shall execute the Assignment. In the event that the Additional
Improvements and/or the Land become subject to an Encumbrance after the date hereof, Landlord
agrees to obtain a non-disturbance agreement from the holder of such Encumbrance, in such holder’s
standard form, provided that Tenant shall pay or reimburse Landlord for any costs associated with
such efforts and agrees to execute such agreement in order to confirm the subordination of this
Lease to the Encumbrance, if requested by the holder of such Encumbrance.

          (b) Tenant shall at Landlord’s request promptly execute any requisite or appropriate document
confirming such subordination. Tenant waives the provisions of any Law now or hereinafter in
effect which may give or purport to give Tenant any right to terminate or otherwise adversely
affect this Lease and Tenant’s obligations hereunder in the event any foreclosure proceeding is
prosecuted or completed or in the event the Additional Improvements, the Land or Landlord’s
interest therein is transferred by foreclosure, by deed in lieu of foreclosure or otherwise. At
the request of such transferee, Tenant shall attorn to such transferee and shall recognize such
transferee as the Landlord under this Lease. Tenant agrees that upon any such attornment, such
transferee shall not be (i) bound by any payment of Basic Rent or Additional Rent more than one
month in advance, except prepayments in the nature of security for the performance by Tenant of its
obligations under this Lease, but only to the extent such prepayments have been delivered to such
transferee, (ii) bound by any amendment of this Lease

41

 

made without the consent of the holder of each Encumbrance existing as of the date of such
amendment, (iii) liable for damages for any breach, act or omission of any prior landlord, or (iv)
subject to any offsets or defenses which Tenant might have against any prior landlord; provided,
however, that after succeeding to Landlord’s interest under this Lease, such transferee shall agree
to perform in accordance with the terms of this Lease all obligations of Landlord arising after the
date of transfer. Within five days after the request of such transferee, Tenant shall execute,
acknowledge and deliver any requisite or appropriate document submitted to Tenant confirming such
attornment.

          (c) If any prospective or current holder of an Encumbrance requires that modifications to this
Lease be obtained, and provided that such modifications (i) are reasonable, (ii) do not adversely
affect in a material manner Tenant’s use of the Leased Premises for the Permitted Use, (iii) do not
increase the rent and other sums to be paid by Tenant, (iv) do not change Tenant’s affirmative or
negative covenants set forth herein, or (v) affect Tenant’s option to purchase the Leased Premises
as provided in Paragraph 6(b), then Landlord may submit to Tenant an amendment to this Lease
incorporating such required modifications, and Tenant shall execute, acknowledge and deliver such
amendment to Landlord within five days after Tenant’s receipt thereof.

     31. Binding Effect. All of the covenants, conditions and obligations contained in
this Lease shall be binding upon and inure to the benefit of the respective successors and assigns
of Landlord and Tenant to the same extent as if each successor and assign were in each case named
as a party to this Lease. This Lease may not be changed, modified or discharged except by a
writing signed by Landlord and Tenant and consented to by the Credit Facility Provider and the
State.

     32. Headings. The headings to the various paragraphs of this Lease have been inserted
for convenient reference only and shall not to any extent have the effect of modifying, amending or
changing the expressed terms and provisions of this Lease.

     33. Environmental Matters.

          (a) As used in this Paragraph 33, the following items shall have meanings set forth below:

          (i) “CAA” — shall mean the Clean Air Act, codified at 42 U.S.C. §§ 7401,
et seq., as amended.

          (ii) “CERCLA” — shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, codified at 42 U.S.C. §§ 9601, et
seq., as amended.

          (iii) “CWA” — shall mean the Clean Water Act, codified at 33 U.S.C. 1251;
et seq., as amended.

          (iv) “Environmental Laws” — shall mean CERCLA, HMTA, RCRA, CAA, CWA, TSCA, RHA
and the Right-to-Know Act and all other federal, local and municipal laws, statutes,
ordinances and codes, guidelines and standards relating to

42

 

health, safety, sanitation, and the protection of the environment or governing the use,
storage, treatment, generation, transportation, processing, handling, production or disposal
of Hazardous Materials, including, without limitation, laws and regulations regarding the
discharge of water or other materials or fluids into waterways, and the rules, regulations,
guidelines, decisions, orders and directives of federal, local and municipal governmental
agencies, authorities and courts with respect thereto presently in effect or hereafter
enacted, promulgated or implemented.

          (v) “Environmental Permits” — shall mean all permits, licenses, approvals,
authorizations, consents or registrations required by any applicable Environmental Laws, on
either an individual or group basis, in connection with the construction, ownership, use or
operation of the Land or the Improvements, or the storage, treatment, generation,
transportation, processing, handling, production or disposal of Hazardous Materials related
to the Land.

          (vi) “Hazardous Materials” — shall mean, without limitation, flammables,
explosives, radioactive materials, asbestos, urea formaldehyde foam insulation,
polychlorinated biphenyls, petroleum or petroleum based or related substances, hydrocarbons
or like substances and their additives or constituents, and any substances now or hereafter
defined as “hazardous substances,” “extremely hazardous substances,” “hazardous wastes” or
“toxic chemicals” in CERCLA, HMTA, RCRA, CAA, CWA, TSCA, RHA, the Right-To-Know Act, or any
so-called “superfund” or “superlien” law or the regulations promulgated pursuant thereto, or
any other applicable federal, state or local law, common law, code, rule, regulation, order,
or ordinance, presently in effect or hereafter enacted, promulgated or implemented.

          (vii) “HMTA” — shall mean the Hazardous Materials Transportation Act, codified at 49
U.S.C. §§ 1801, et seq., as amended.

          (viii) “RCRA” — shall mean the Resource Conservation and Recovery Act of 1976,
codified at 42 U.S.C. §§ 6901, et seq., as amended.

          (ix) “Release” — shall have the same meaning as given to that term in CERCLA,
as amended, and the regulations promulgated thereunder.

          (x) “RHA” shall mean the Rivers and Harbors Appropriation Act, codified at 33
U.S.C. §§ 401, et seq., as amended.

          (xi) “Right-To-Know Act” — shall mean the Emergency Planning and Community
Right-To-Know Act, codified at 42 U.S.C. §§ 11001, et seq., as amended.

          (xii) “TSCA” — shall mean the Toxic Substances Control Act, codified at 15
U.S.C. §§ 2601, et seq., as amended.

          (b) Tenant shall comply at all times and in all respects with the provisions of all
Environmental Laws and Environmental Permits, and shall not commit any actions or omissions that
result in the incurrence of any liability under such Environmental Laws or Environmental Permits.
Tenant will not allow, cause or permit any Hazardous Materials to be

43

 

deposited on or under the Land, or otherwise Released or threatened to be Released from or on
the Land, or otherwise Released or threatened to be Released from or on the Land or the
Improvements or the Additional Improvements, by any Person whatsoever except as normally and
properly used in the construction and operation of the Improvements and the Additional Improvements
in compliance with all Environmental Laws. Tenant shall conduct all of its activities on the Land
and the Improvements and the Additional Improvements, including, without limitation, the off-site
disposal of any Hazardous Materials originating on or from the Land or the Improvements or the
Additional Improvements, in compliance with all Environmental Laws. Tenant shall obtain, whenever
necessary and in its own name, appropriate Environmental Permits for its operations and shall
comply in all respects with the requirements of such Environmental Permits.

          (c) Tenant hereby agrees to indemnify, hold harmless and defend Landlord, the Trustee, the
Credit Facility Provider and the State, and their partners, officers, directors, lenders, agents
and employees from and against any and all claims, losses, damages, liabilities, penalties, costs,
assessments, expenses, demands, fines or liabilities of whatever kind or nature, including, without
limitation, costs, expenses (including expense of posting a bond) and liabilities imposed upon
Landlord pursuant to any indenture or other document, in any way relating to or arising out of:

          (i) The Release or threat of Release of any Hazardous Materials in, on, above, from or
under the Land or Improvements or the Additional Improvements during the Term hereof;

          (ii) Any activity by any party on, off or within the Land or the Improvements or the
Additional Improvements in connection with the use, handling, treatment, monitoring,
removal, storage, decontamination, clean up, testing, transportation or disposal of any
Hazardous Materials located at any time on, within or under the Land or the Improvements or
the Additional Improvements and introduced onto the Land or the Improvements or the
Additional Improvements at any time on or after the commencement of the Term and prior to
the expiration or other termination of this Lease;

          (iii) The use, handling, treatment, monitoring, removal, storage, decontamination,
clean-up, testing, transportation or disposal of any Hazardous Materials on, under or within
the Land or the Improvements or the Additional Improvements which were introduced onto the
Land or into the Improvements or the Additional Improvements at any time on or after the
commencement of the Term and prior to the expiration or other termination of this Lease;

          (iv) The performance by Tenant or any other Person acting on behalf of Tenant during
the Term of any inspection, investigation, audit, study, sampling, testing, removal,
containment or other remedial action or other clean-up related to Hazardous Materials on,
above, within, related to, or affected by, the Land or the Improvements;

          (v) The imposition, recording or filing of any lien (including, without limitation, a
so-called “superlien”) against the Land or the Improvements or the Additional Improvements
as a result of the incurrence by any party of any claims,

44

 

expenses, demands, losses, costs, fines or liabilities of whatever kind or nature with
respect to any actual, suspected or threatened Release of Hazardous Materials or
environmental condition, on, above, within, related to, or affected by, the Land or the
Improvements or the Additional Improvements at any time after the Lease Commencement Date
and prior to the expiration or other termination of this Lease; or

          (vi) The violation by Tenant of any applicable Environmental Laws or Environmental
Permits with respect to the Land or the Improvements or the Additional Improvements. The
provisions of this subparagraph (c) shall survive the expiration or any other termination of
this Lease.

          (d) Landlord has delivered to Tenant an undated “Phase I” environmental report referred to as
“Phase I Environmental Assessment Results Belward Research Campus, Parcel A, Montgomery County,
MD”, prepared in June/July 1997 by ManTech Environmental Corporation, as supplemented by the
reliance letter from ManTech Environmental Corporation dated as of December 23, 1997 and the letter
from Apex Environmental, Inc. dated as of December 23, 1997, and as further supplemented by the
letter from ManTech Environmental Corporation dated as of December 21, 1999, indicating any
presence of any Hazardous Materials on, above or below the Land, or of the Release or threat of
Release of any Hazardous Materials existing prior to the commencement of the Term.

          (e) Unless Tenant purchases the Leased Premises as provided in Paragraph 6(b), no less than
nine months prior to the expiration of the Term hereof, Tenant shall cause to be prepared, by an
environmental consultant reasonably acceptable to Landlord, an environmental assessment of the Land
and the Improvements and the Additional Improvements (the “Assessment”), which shall identify the
presence or probable presence of any Hazardous Materials on, above or below the Land or the
Improvements or the Additional Improvements, or the Release or threat of Release of any Hazardous
Materials or any violation of any Environmental Laws with respect to the Land and the Improvements
and the Additional Improvements or Tenant’s operations thereon or therein. To the extent that the
Assessment identifies any such Hazardous Materials, Releases or threatened Releases or violations,
Tenant shall take all such measures, including, without limitation, any and all such measures as
shall be recommended by such environmental consultant, to remove, remedy and/or cure such
condition, so that, by the end of the Term hereof, no Hazardous Materials shall be present on,
above, within or under the Land or the Improvements or the Additional Improvements, no Release or
threat of Release of Hazardous Materials exists, and no violation of Environmental Laws shall exist
with respect to the Land or the Improvements or the Additional Improvements or Tenant’s operations
thereon or therein. Any such response actions undertaken by Tenant shall comply fully with all
applicable Environmental Laws. If Tenant fails to provide the Assessment to Landlord by the date
that is nine months prior to the expiration of the Term, or fails to take such recommended measures
and to remove any Hazardous Materials and comply with all Environmental Laws as aforesaid, Landlord
may, but shall not be obligated to, have such Assessment prepared and such removal and/or remedial
measures undertaken at the expense of Tenant, the costs of which shall be considered Additional
Rent hereunder. The foregoing provisions of this subparagraph (e) shall survive the expiration or
any other termination of this Lease and shall not be construed to relieve Tenant in any way of its
continuing obligations throughout the Term to comply with the provisions of subparagraph (b) above.

45

 

          (f) Unless Tenant purchases the Leased Premises as provided in Paragraph 6(b), as a condition
of any termination of this Lease, Tenant shall cause to be prepared, by an environmental consultant
reasonably acceptable to Landlord, an Assessment which shall identify the presence or probable
presence of any Hazardous Materials on, above or below the Land or the Improvements or the
Additional Improvements, or the Release or threat of Release of any Hazardous Materials or any
violation of any Environmental Laws with respect to the Land and the Improvements and the
Additional Improvements or Tenant’s operations thereon or therein. To the extent that the
Assessment identifies any such Hazardous Materials, Releases or threatened Releases or violations,
Tenant shall take all such measures, including, without limitation, any and all such measures as
shall be recommended by such environmental consultant, to remove, remedy and/or cure such
condition, so that, as soon as practicable after the termination of this Lease, no Hazardous
Materials shall be present on, above, within or under the Land or the Improvements or the
Additional Improvements, no Release or threat of Release of Hazardous Materials exists, and no
violation of Environmental Laws shall exist with respect to the Land or the Improvements or the
Additional Improvements or Tenant’s operations thereon or therein. Any such response actions
undertaken by Tenant shall comply fully with all applicable Environmental Laws. If Tenant fails to
engage an environmental consultant to provide the Assessment to Landlord within fifteen (15) days
of the event which causes or permits termination of this Lease, or fails to take such recommended
measures and to remove any Hazardous Materials and comply with all Environmental Laws as aforesaid,
Landlord may, but shall not be obligated to, have such Assessment prepared and such removal and/or
remedial measures undertaken at the expense of Tenant, the costs of which shall be considered
Additional Rent hereunder. The foregoing provisions of this subparagraph (f) shall survive the
expiration or any other termination of this Lease and shall not be construed to relieve Tenant in
any way of its continuing obligations throughout the Term to comply with the provisions of
subparagraph (b) above.

     34. Quiet Enjoyment. So long as no Event of Default exists hereunder, and subject to
the terms of this Lease, the Deed of Trust, the 1997 Deeds of Trust, any Encumbrance, and any other
matters of record, Landlord warrants peaceful and quiet occupation and enjoyment of the Leased
Premises by Tenant, free of hindrance by Landlord or anyone claiming by or through Landlord.

     35. Dealings With Credit Facility Provider. Notwithstanding any other provision of
this Lease, the Bond Documents and the Credit Facility Documents, as between Tenant and the Credit
Facility Provider, Tenant shall deal solely and directly with the Credit Facility Provider in
connection with all matters relating to the transactions contemplated by this Lease, the Bond
Documents and the Credit Facility Documents, and Tenant shall be entitled to rely upon any
consents, waivers or approvals given by the Credit Facility Provider.

     36. Nature of Transaction. With respect to the Leased Premises, it is the intent of
Tenant and the Credit Facility Provider that, for federal, state and local tax purposes and for
bankruptcy, commercial and regulatory law and all other purposes, this Lease and the transactions
contemplated by the Operative Documents shall be treated as the repayment and security provisions
of a loan by Landlord and the Credit Facility Provider to Tenant, that Tenant shall be treated as
the legal and beneficial owner entitled to any and all benefits of ownership of

46

 

such Leased Premises and that all payments of Basic Rent during the Term shall be treated as
payments of interest and, if applicable, principal.

     37. Grant of Lien and Future Assurances.

          (a) Intent of the Parties. It is the intent of the parties hereto that this Lease
grants a security interest and deed of trust lien, as the case may be, on the Leased Premises and
the other Tenant Collateral to and for the benefit of Landlord (for the benefit of Landlord and the
Credit Facility Provider) to secure Tenant’s performance under and payment of all amounts under
this Lease and the other Operative Documents.

          (b) Transactions to be Regarded as Loans. Specifically, without limiting the
generality of Paragraph 36, Landlord and Tenant intend and agree that in the event of any
insolvency or receivership proceedings or a petition under the United States bankruptcy laws or any
other applicable insolvency laws or statute of the United States of America or any State or
Commonwealth thereof affecting Tenant, Landlord, the Credit Facility Provider or any collection
actions, the transactions evidenced by the Operative Documents shall be regarded as loans made by
Landlord and the Credit Facility Provider as unrelated third party lenders to or for the benefit of
Tenant secured by the Leased Premises and the other Tenant Collateral.

          (c) Mortgage Lien. Specifically, without limiting the generality of Paragraph 36,
Tenant has mortgaged, granted, bargained, sold, conveyed and confirmed,
and does hereby mortgage, grant, bargain, sell, convey and confirm, a lien on the
Leased Premises and the other Tenant Collateral to secure to Landlord (for the benefit of Landlord
and the Credit Facility Provider) (i) all amounts advanced by Landlord and the Credit Facility
Provider pursuant to the terms of the Operative Documents, together with interest thereon, and all
other amounts payable under the Operative Documents in connection therewith and (ii) all other
obligations of Tenant under the Operative Documents, effective on the date hereof.

          (d) Security Agreement. Specifically, but without limiting the generality of
Paragraph 36, Landlord and Tenant further intend and agree that, for the purpose of securing the
payment of the above-described amounts and to further secure all other obligations of Tenant under
the Operative Documents, (i) this Lease shall also be deemed to be a security agreement and
financing statement within the meaning of Article 9 of the Maryland Uniform Commercial Code (it
being understood that Tenant hereby conveys and warrants and grants a security interest in the
Leased Premises and the other Tenant Collateral to Landlord (for the benefit of Landlord and the
Credit Facility Provider) to secure all amounts advanced by Landlord and the Credit Facility
Provider pursuant to the terms of the Operative Documents, together with interest thereon, and all
other amounts payable under the Operative Documents and all other obligations of Tenant under the
Operative Documents); (ii) the possession by Landlord or any of its agents of notes and such other
items of property as constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be “possession by the secured party” for purposes of perfecting the security interest
pursuant to Section 9-313 of the Maryland Uniform Commercial Code; and (iii) notifications to
Persons holding such property, and acknowledgments, receipts or confirmations from financial
intermediaries, bankers or agents (as applicable) of Tenant shall be deemed to have been given for
the purpose of perfecting such security interest under any Law. Landlord and Tenant shall, to the
extent consistent with this

47

 

Lease, take such actions and execute, deliver, file and record such other documents, financing
statements and mortgages as may be necessary to ensure that, if the Lease was deemed to create a
security interest in the Leased Premises and the other Tenant Collateral in accordance with this
Paragraph 37, such security interest would be deemed to be a first priority perfected security
interest (subject only to the Deed of Trust and the 1997 Deeds of Trust) and will be maintained as
such throughout the Term.

          (e) Deed of Trust. Specifically, but without limiting the foregoing or the generality
of Paragraph 36, Tenant hereby grants, bargains, sells, warrants, conveys, aliens, remises,
releases, assigns, sets over and confirms to Sean V. Timms and Arthur L. Perraud (collectively,
the “Deed of Trust Trustees”) all of Tenant’s right, title, and interest in and to the following
(collectively, the “Mortgaged Property”): (i) the Leased Premises and all appurtenances
relating thereto and all proceeds, both cash and noncash thereof; (ii) all easements,
rights-of-way, strips and gores of land, vaults, streets, ways, alleys, passages, sewer rights,
waters, water courses, water rights, minerals, flowers, shrubs, crops, trees, timber and other
emblements, and all estates, rights, titles, interests, tenements, hereditaments and appurtenances,
reversions and remainders whatsoever, in any way belonging, relating or appertaining to the Leased
Premises or any part thereof, whether now owned or hereafter acquired by Tenant; (iii) all right,
title and interest of Tenant in any and all leases, rental agreements and arrangements of any sort
now or hereafter affecting the Leased Premises or any portion thereof and providing for or
resulting in the payment of money to Tenant for the use of the Leased Premises or any portion
thereof, irrespective of whether such leases, rental agreements and arrangements be oral or
written, and including any and all extensions, renewals and modifications thereof (the “Subject
Leases”) and guaranties of the performance or obligations of any lessees thereunder, together
with all income, rents, issues, profits and revenues from the Subject Leases (including all lessee
security deposits and all other lessee deposits, whether held by Tenant or in a trust account, and
all other deposits and escrow funds relating to any Subject Leases), and all the estate, right,
title, interest, property, possession, claim and demand whatsoever at law, as well as in equity, of
Tenant of, in and to the same; provided, however, that although this Lease contains (and it is
hereby agreed that this Lease contains) a present, current, unconditional and absolute assignment
of all of said income, rents, issues, profits and revenues, Tenant shall collect and apply such
rental payments and revenues as provided in this Lease and the other Operative Documents; (iv) all
right, title and interest of Tenant in, to and under all franchise agreements, management
contracts, consents, authorizations, certificates and other rights of every kind and character of
any of the Leased Premises, to the extent the same are transferable, service contracts, utility
contracts, leases of equipment, and all other contracts, licenses and permits now or hereafter
affecting the Leased Premises or any part thereof and all guaranties and warranties with respect to
any of the foregoing (the “Subject Contracts”); (v) all right, title and interest of Tenant
in any insurance policies or binders now or hereafter relating to the Leased Premises, including
any unearned premiums thereon, as further provided in this Lease; (vi) all right, title and
interest of Tenant in any and all awards, payments, proceeds and the right to receive the same,
either before or after any foreclosure hereunder, as a result of any temporary or permanent injury
or damage to, taking of or decrease in the value of the Leased Premises by reason of casualty,
condemnation or otherwise as further provided in this Lease; (vii) all right, title and interest of
Tenant in all utility, escrow and all other deposits (and all letters of credit, certificates of
deposit, negotiable instruments and other rights and evidence of rights to cash) now or hereafter
relating to the

48

 

Leased Premises or the purchase, construction or operation thereof; (viii) all claims and
causes of action arising from or otherwise related to any of the foregoing, and all rights and
judgments related to any legal actions in connection with such claims or causes of action; (ix) all
Alterations, extensions, additions, improvements, betterments, renewals and replacements,
substitutions, or proceeds of any of the foregoing acquired with proceeds of any of the property
described hereinabove; all of which foregoing items are hereby declared and shall be deemed to be a
portion of the security for the indebtedness and obligations herein described, a portion of the
above described collateral being located upon the Land; and (x) all of the other Tenant Collateral,
IN TRUST, HOWEVER, WITH POWER OF SALE, to secure (i) all amounts advanced by Landlord and the
Credit Facility Provider pursuant to the terms of the Operative Documents, together with interest
thereon, and all other amounts payable under the Operative Documents in connection therewith and
(ii) all other obligations of Tenant under the Operative Documents, effective on the date hereof.

          (f) Power of Sale Remedies. Without limiting any other remedies set forth herein, in
the event that a court of competent jurisdiction rules that this Lease constitutes a deed of trust
or other secured financing with respect to the Leased Premises as is the intent of the parties
pursuant to this Paragraph 37, then Landlord and Tenant agree that, upon the occurrence and during
the continuance of any Event of Default, the Deed of Trust Trustees may, and are hereby irrevocably
empowered to, with or without entry, and to the extent permitted by applicable law, sell or cause
the sale of the Leased Premises or any part or parts thereof at one or more public auctions as an
entirety or in parcels as Landlord may elect free from any equity of redemption for cash, on
credit, or for other property, for immediate or future delivery, and on such terms as the Deed of
Trust Trustees shall deem advantageous and proper, such sale or sales to be made in such manner and
upon such notice and advertisement as may be required by applicable law, or in the absence of any
such requirements, as Landlord may deem appropriate, and to make conveyance to the purchase or
purchasers. Notwithstanding the foregoing, upon the occurrence of an Event of Default, Landlord
may, at its option, proceed to foreclose on the Leased Premises by judicial foreclosure.

Waiver. Tenant Acknowledges and agrees that if it defaults, a non-judicial foreclosure sale
of the Leased Premises, if permitted by law, may be conducted without a hearing of any kind and
without notice beyond the publication and posting of the notice of sale as required by law. tenant
hereby waives to the extent permitted by law any rights it may have to any such hearing and
notice.

          (g) UCC Remedies. In addition to any other remedies granted in this Lease to Landlord
(including specifically, but not limited to, the right to proceed against the Leased Premises in
accordance with the rights and remedies in respect to those portions of the Leased Premises which
are real property pursuant to Section 9-604(a) of the Maryland Uniform Commercial Code), Landlord
may proceed under the Maryland Uniform Commercial Code as to all or any part of the personal
property (tangible or intangible) and fixtures included with the Leased Premises (such portion of
the Leased Premises being referred to herein as the “Personalty”) and shall have and may
exercise with respect to the Personalty all the rights, remedies, and powers of a secured party
under the Maryland Uniform Commercial Code, including, without limitation, the right and power to
sell, at one or more public or private sales, or otherwise dispose of, lease, or utilize the
Personalty and any part or parts thereof in any

49

 

manner authorized or permitted under the Maryland Uniform Commercial Code after default by a
debtor, and to apply the proceeds thereof toward payment of any costs and expenses and attorney’s
fees and legal expenses thereby incurred by Landlord, and toward payment of the indebtedness hereby
secured in such order or manner as provided herein. Any requirement of the Maryland Uniform
Commercial Code for reasonable notification shall be met by mailing written notice to Tenant at its
address set forth in Exhibit E hereto at least ten (10) days prior to the sale or other
event for which such notice is required.

          (h) Judicial Remedies. Landlord may proceed to protect and enforce its rights by a
suit or suits in equity or at law, or for the specific performance of any covenant or agreement
contained herein or in the Operative Documents, or in aid of the execution of any power herein or
therein granted, or for the foreclosure of the mortgage lien created by this Lease, or for the
enforcement of any other appropriate legal or equitable remedy and in aid thereof Tenant hereby
assents to the passage of a decree by the equity court having jurisdiction. Upon the bringing of
any suit to foreclose the mortgage lien created by this Lease or to enforce any other remedy
available hereunder, Landlord shall be entitled as a matter of right, without notice and without
giving bond to Tenant or anyone claiming under, by or through it, and without regard to the
solvency or insolvency of Tenant or the then value of the premises, to have a receiver appointed of
all the Leased Premises and of the earnings, income, rents, issues, profits and proceeds thereof,
with such power as the court making such appointment shall confer, and Tenant does hereby
irrevocably consent to such appointment.

          (i) Acceleration of Payments under the Letter of Credit Agreements and Other Operative
Documents. In case of any sale of the Leased Premises, or of any part thereof, pursuant to any
judgment or decree of any court or otherwise in connection with the enforcement of any of the terms
of this Lease, all outstanding amounts due and owing under the Letter of Credit Agreements and the
other Operative Documents, if not previously due, and the interest accrued thereon, if any, shall
at once become and be immediately due and payable; also in the case of any such sale, Landlord may
bid and become the purchaser, and the purchaser or purchasers, for the purpose of making settlement
for or payment of the purchase price, shall be entitled to turn in and use all outstanding amounts
due and owing under the Letter of Credit Agreements and the other Operative Documents, and any
claims for interest due and unpaid thereon, in order that there may be credited as paid on the
purchase price the sum apportionable and applicable to all outstanding amounts due and owing under
the Letter of Credit Agreements and the other Operative Documents, including principal and interest
thereon, out of the net proceeds of such sale after allowing for the proportion of the total
purchase price required to be paid in actual cash. If at any foreclosure proceeding the Leased
Premises shall be sold for a sum less than the total amount of indebtedness for which judgment is
therein given, the judgment creditor shall be entitled to the entry of a deficiency decree against
Tenant and against the property of Tenant for the amount of such deficiency.

          (j) Attorney-in-Fact. Tenant hereby irrevocably appoints Landlord as Tenant’s
attorney-in-fact, with full authority in the place and stead of Tenant and in the name of Tenant or
otherwise, from time to time in Landlord’s discretion, to execute any instrument which Landlord may
deem necessary or advisable to accomplish the purposes of this Lease (subject to any limitations
set forth in the Operative Documents), and to take any action (including any action that Tenant is
entitled to take), including, without limitation:

50

 

          (i) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for money due and to become due under or in connection with all or any portion
of the Leased Premises and the other Tenant Collateral;

          (ii) to receive, endorse and collect any drafts or other instruments, documents and
chattel paper in connection with the foregoing clause (a);

          (iii) to file any claim or take any action or institute any proceedings which Landlord
may deem to be necessary or advisable for the collection thereof or to enforce compliance
with the terms and conditions of this Lease; and

          (iv) to perform any affirmative obligations of Tenant hereunder, including the
execution of mortgages, financing statements and other documents.

     Tenant hereby acknowledges, consents and agrees that the power of attorney granted pursuant to
this subparagraph (j) is irrevocable and coupled with an interest. Notwithstanding anything
contained herein to the contrary, the rights and powers presently granted Landlord by this
subparagraph (j) may be exercised by Landlord only upon the occurrence and during the continuance
of an Event of Default.

     38. Miscellaneous.

          (a) 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.

          (b) References to the masculine shall include the feminine and neuter and the plural shall
include the singular, as the context may require.

          (c) This Lease shall be construed and enforced in accordance with the Law of the State of
Maryland.

          (d) Time is of the essence with respect to each and every provision of this Lease.

          (e) With respect to any provision of this Lease which requires Landlord to not unreasonably
withhold its consent or approval, if in connection therewith Landlord is obligated under the Deed
of Trust, the 1997 Deeds of Trust, the Credit Facility Documents, the Bond Documents, the State
Loan Documents or applicable Law to obtain the consent or approval of the Trustee, the Credit
Facility Provider, the State or any other third party, then Landlord’s failure to provide consent
or failure to otherwise act in a reasonable manner because of its inability to obtain the consent
or approval of the Trustee, the Credit Facility Provider, the State or other third party shall not
be deemed unreasonable, so long as Landlord has made a good faith effort to obtain such consent.

          (f) Upon the satisfaction of the Deed of Trust and the 1997 Deeds of Trust, references in this
Lease to the Credit Facility Provider, the Trustee, the State, the Credit Facilities, the Credit
Facility Agreement, the Deed of Trust, the 1997 Deeds of Trust and the

51

 

Credit Facility Documents shall be ineffective, and Tenant shall no longer be obligated to
comply with the covenants contained in Paragraphs 26(g), (h), (i) or (j) and in Paragraph 27.

          (g) The parties hereto acknowledge that the provisions of this Lease have been tailored to
specific financing accommodations provided by Landlord, the Credit Facility Provider and the State,
including the Bonds and the Credit Facilities pursuant to the terms of the Bond Documents and the
Credit Facility Documents. In the event it becomes necessary to replace all or any portion of
these accommodations, Landlord shall exert good faith efforts to obtain financing on the best terms
available. Landlord and Tenant agree to negotiate in good faith to amend this Lease to re-tailor
this Lease to suit such replacement financing, upon terms mutually agreeable to Landlord, Tenant
and the financial institution providing or participating in such financing and it is acknowledged
and agreed that Tenant’s rental obligations hereunder will be restructured to provide for the
payment of all interest and all related expenses of such replacement financing in the event such
interest and related expenses under the replacement financing are not identical to those payable
under the Bonds and the Credit Facility Documents and the State Loan Documents. The parties hereto
also acknowledge that in the event it becomes necessary to obtain replacement financing for any
reason other than (i) Landlord’s misappropriation of funds or (ii) a default by Landlord hereunder
or under the Bond Documents or the Credit Facility Documents not caused directly or indirectly by
the act or omission of Tenant, all expenses incurred by Landlord in connection with such
replacement financing shall be paid by Tenant as Additional Rent.

          (h) Landlord and Tenant hereby agree and consent that any action or proceeding arising out of
or brought to enforce the provisions of this Lease may be brought in any appropriate court in
Montgomery County, Maryland or Baltimore City, Maryland, and by the execution of this Lease
Landlord and Tenant irrevocably consent to the jurisdiction of each such court.

          (i) If for any reason Landlord or Tenant should become not qualified to do business in the
State, Landlord and Tenant hereby agree to designate and appoint, without power of revocation, an
agent for service of process within the State, as the agent for Landlord or Tenant, as applicable,
upon whom may be served all process, pleadings, notice or other papers which may be served upon
Landlord or Tenant, as applicable, as a result of any of Landlord’s or Tenant’s, as applicable,
obligations under this Lease.

          (j) Landlord and Tenant covenant that throughout the Term, if a new agent for service of
process within the State is designated pursuant to the terms of subparagraph (i) above, Landlord or
Tenant, as applicable, will immediately file with the other party hereto the name and address of
such new agent and the date on which such appointment is to become effective.

          (k) Landlord and Tenant hereby jointly waive trial by jury in any action or proceeding to
which Landlord and Tenant may be parties, arising out of or in any way pertaining to this Lease.
This waiver is knowingly, willingly and voluntarily made by Landlord and Tenant, each of which
hereby represents that no representations of fact or opinion have been made by any individual to
induce this waiver of trial by jury or to in any way modify or nullify its effect. Each of
Landlord and Tenant further represents that it has been represented in the signing of this

52

 

Lease and in the making of this waiver by independent legal counsel, selected of its own free
will, and that it has had the opportunity to discuss this waiver with counsel.

          (l) Landlord has issued the Bonds to, inter alia, fund the costs of the construction and
equipping (but excluding the Tenant’s Equipment) of the Additional Improvements. With respect to
the Bonds, Landlord agrees that Landlord, upon Tenant’s request, shall agree to procure substitute
Credit Facilities upon terms and conditions mutually satisfactory to Landlord and Tenant.

          (m) Landlord and Tenant acknowledge and agree that this Lease amends and restates the 1999
Lease in its entirety.

53

 

     IN
WITNESS WHEREOF, Landlord and Tenant have caused this Amended and
Restated Lease Agreement to be signed on their behalf,
under seal, by their respective signatories thereunto duly organized as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	MARYLAND ECONOMIC DEVELOPMENT CORPORATION, Landlord
	 
	 

	 	 	 	By:
	 	/s/ Robert C. Brennan 	 	(SEAL)
	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	Robert C. Brennan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	HUMAN GENOME SCIENCES, INC., Tenant
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ H. Thomas Watkins	 	(SEAL)
	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	H. Thomas Watkins	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	President and Chief Executive
Officer	 	 
	 

	 	 	 	 	 	 

	 	 

54

 

EXHIBIT A

DESCRIPTION OF LAND

     Lot 3, Block “A” as delineated on a Subdivision Record Plat entitled “Lots 3 & 4 Block “A,”
The Johns Hopkins Belward Research Campus” and recorded among the Land Records of Montgomery County
as Plat Number 21627.

55

 

EXHIBIT B

[INTENTIONALLY OMITTED]

 

 

EXHIBIT C

Human Genome Sciences, Inc.

Pilot Plant Expansion

Excluded Equipment List

Equipment platforms

Casework

Telephone system

Furniture

Bench top lab equipment

75 KVA UPS systems

600 KVA emergency generator

Instruments — Attachment A

PLC hardware & software — Attachment B

Boiler, 2 chillers, tower, RO water system

HVAC — Attachment C

Fume hoods — Attachment D

Process equipment — Attachment D

Mechanical process equipment — Attachment D

Process equipment — Attachment D

Cold rooms — Attachment E

computer, furniture and bench top lab equipment

 

 

EXHIBIT D

SCHEDULE OF OPTION PURCHASE PRICES

[SEE ATTACHED]

58

 

EXHIBIT E

NOTICE AND PAYMENT ADDRESSES

	 	 	 	 	 
	 

	 	If to Landlord:	 	 
	 
	 	 	 	 
	 

	 	Notices:

	 	Maryland Economic Development Corporation
	 

	 	 	 	100 N. Charles Street, Suite 630
	 

	 	 	 	Baltimore, Maryland 21201
	 

	 	 	 	Attention: Executive Director
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Teri M. Guarnaccia, Esquire
	 

	 	 	 	Ballard Spahr LLP
	 

	 	 	 	300 East Lombard Street, 18th Floor
	 

	 	 	 	Baltimore, Maryland 21202
	 
	 	 	 	 
	 

	 	Payments:

	 	Basic Rent
	 
	 	 	 	 
	 

	 	 	 	By Electronic Transfer:
	 
	 	 	 	 
	 

	 	 	 	Manufacturers and Traders Trust Company
	 

	 	 	 	Baltimore, Maryland 21201
	 
	 	 	 	 
	 

	 	 	 	By Mail:
	 
	 	 	 	 
	 

	 	 	 	MEDCO
	 

	 	 	 	100 N. Charles Street, Suite 630
	 

	 	 	 	Baltimore, Maryland 21201
	 

	 	 	 	Attention: Executive Director
	 
	 	 	 	 
	 

	 	If to Tenant:	 	 
	 
	 	 	 	 
	 

	 	Notices:

	 	Human Genome Sciences, Inc.
	 

	 	 	 	14200 Shady Grove Road
	 

	 	 	 	Rockville, Maryland 20850
	 

	 	 	 	Attention: James H. Davis
	 

	 	 	 	Executive Vice President, General Counsel
	 

	 	 	 	and Secretary

59

 

	 	 	 	 	 
	 

	 	If to Bank:	 	 
	 
	 	 	 	 
	 

	 	Notices:

	 	Manufacturers and Traders Trust Company
	 

	 	 	 	1 Research Court, Suite 400
	 

	 	 	 	Rockville, Maryland 20850
	 

	 	 	 	Attention: Arthur L. Perraud
	 
	 	 	 	 
	 

	 	 	 	Manufacturers and Traders Trust Company
	 

	 	 	 	25 South Charles Street, 11th Floor
	 

	 	 	 	Baltimore, Maryland 21201
	 

	 	 	 	Attention: Letter of Credit Department
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Nancy R. Little, Esquire
	 

	 	 	 	McGuireWoods LLP
	 

	 	 	 	One James Center
	 

	 	 	 	901 East Cary Street
	 

	 	 	 	Richmond, Virginia 23219
	 
	 	 	 	 
	 

	 	If to State:	 	 
	 
	 	 	 	 
	 

	 	Notices:

	 	Department of Business and Economic Development
	 

	 	 	 	217 East Redwood Street, 22nd Floor
	 

	 	 	 	Baltimore, Maryland 21202
	 

	 	 	 	Attention: Director of Community Financing Group
	 

	 	 	 	Programs

60

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]