Document:

<PAGE>

                                                                   EXHIBIT 10.23
________________________________________________________________________________

                            PARTICIPATION AGREEMENT
                          (Capital One Realty, Inc.)

                         Dated as of September 3, 1999

                                     among

                           CAPITAL ONE REALTY, INC.,
                     as Construction Agent and as Lessee,

                               CAPITAL ONE BANK,
                                 as Guarantor,

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

                          THE VARIOUS BANKS AND OTHER
                 LENDING INSTITUTIONS WHICH ARE PARTIES HERETO
                              FROM TIME TO TIME,
                                as the Holders,

                          THE VARIOUS BANKS AND OTHER
                 LENDING INSTITUTIONS WHICH ARE PARTIES HERETO
                              FROM TIME TO TIME,
                                as the Lenders

                                      and

                            BANK OF AMERICA, N.A.,
                               as Agent for the
                            Lenders and respecting
                     the Security Documents, as Agent for
                         the Lenders and the Holders,
                       to the extent of their interests

________________________________________________________________________________
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                           Page
<S>                                                                        <C>
SECTION 1   THE LOANS ....................................................   1

SECTION 2   HOLDER FUNDINGS...............................................   2

SECTION 3   SUMMARY OF TRANSACTIONS.......................................   2
     3.1   Operative Agreements...........................................   2
     3.2   Property Purchase..............................................   2
     3.3   Construction of Improvements; Lease or Disposition of
           Property.......................................................   3
     3.4   Ratable Interests of the Holders and the Lenders in the
           Commitments and Holder Commitments under the COSI Participation
           Agreement......................................................   3

SECTION 4   THE CLOSINGS..................................................   3
     4.1   Initial Closing Date...........................................   3
     4.2   Initial Closing Date; Property Closing Dates; Construction
           Advances.......................................................   3

SECTION 5   FUNDING OF ADVANCES; REPORTING REQUIREMENTS ON COMPLETION
            DATE; LESSEE DELIVERY OF NOTICES; CERTAIN COVENANTS...........   4
     5.1   General........................................................   4
     5.2   Procedures for Funding.........................................   5
     5.3   Conditions to the Holders' and the Lenders' Obligations to
           Advance Funds for the Acquisition of Property..................   6
     5.4   Conditions to the Holders' and the Lenders' Obligations to Make
           Construction Advances for the Ongoing Construction on any
           Property Prior to the Construction Period Termination Date.....   9
     5.5   Additional Reporting and Delivery Requirements on Completion
           Date Respecting Each Property..................................  10
     5.6   Construction Agent Delivery of Construction Budget
           Modifications..................................................  10
     5.7   Maintenance of the Lessee as a Wholly-Owned Entity.............  11
     5.8   Unilateral Right to Increase the Holder Commitments and the
           Lender Commitments.............................................  11
     5.9   Borrower's Right to Increase the Commitments and the Holder
           Commitments....................................................  11
     5.10  Additional Holder Representations; Lessee's Right to Replace
           Holder.........................................................  11
     5.11  Post-Closing Satisfaction of Conditions Respecting Certain
           Properties.....................................................  12

SECTION 6   CONDITIONS OF THE INITIAL CLOSING.............................  12
     6.1   Conditions to the Lessor's and the Holders' Obligations........  12
     6.2   Conditions to the Lessee's Obligations.........................  14
     6.3   Conditions to the Agent's Obligations..........................  16

SECTION 7   REPRESENTATIONS AND WARRANTIES ON THE INITIAL CLOSING
            DATE..........................................................  16
</TABLE>
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<TABLE>
<S>                                                                         <C>
     7.1   Representations and Warranties of the Holders..................  16
     7.2   Representations and Warranties of the Borrower.................  18
     7.3   Representations and Warranties of the Construction Agent and
           the Credit Parties.............................................  20
     7.4   Representations and Warranties of the Agent....................  22

SECTION 8   REPRESENTATIONS AND WARRANTIES ON FUNDING DATES...............  23
     8.1   Representations and Warranties on Property Closing Dates.......  23
     8.2   Representations and Warranties Upon Initial Construction
           Advances.......................................................  25
     8.3   Representations and Warranties Upon the Date of Each
           Construction Advance That Is Not An Initial Advance............  27

SECTION 8B.  GUARANTY.....................................................  28
     8B.1. Guaranty of Payment and Performance............................  28
     8B.2. Obligations Unconditional......................................  28
     8B.3. Modifications..................................................  29
     8B.4. Waiver of Rights...............................................  30
     8B.5. Reinstatement..................................................  30
     8B.6. Remedies.......................................................  30
     8B.7. Termination of Guaranty........................................  31
     8B.8. Payment of Amounts to the Agent................................  31
     8B.9. Denial or Disaffirmance of Guaranty............................  31

SECTION 9   PAYMENT OF CERTAIN EXPENSES...................................  31
     9.1   Transaction Expenses...........................................  31
     9.2   [Reserved].....................................................  32
     9.3   Certain Fees and Expenses......................................  32
     9.4   Facility Fee...................................................  33

SECTION 10   OTHER COVENANTS AND AGREEMENTS...............................  33
     10.1  Cooperation with the Construction Agent or the Lessee..........  33
     10.2  Covenants of the Owner Trustee and the Holders.................  34
     10.3  Credit Party Covenants, Consent and Acknowledgment.............  36
     10.4  Sharing of Certain Payments....................................  37
     10.5  Grant of Easements, etc........................................  37
     10.6  Appointment by Holders and Owner Trustee.......................  37

SECTION 11   CREDIT AGREEMENT AND TRUST AGREEMENT.........................  38
     11.1  Construction Agent's and Lessee's Credit Agreement Rights......  38
     11.2  Construction Agent's and Lessee's Trust Agreement Rights.......  39

SECTION 12   TRANSFER OF INTEREST.........................................  40
     12.1  Restrictions on Transfer.......................................  40
     12.2  Effect of Transfer.............................................  40

SECTION 13   INDEMNIFICATION..............................................  41
</TABLE>
<PAGE>

<TABLE>
<S>                                                                         <C>
     13.1  General Indemnity..............................................  41
     13.2  General Tax Indemnity..........................................  43
     13.3  EXPRESS INDEMNIFICATION FOR ORDINARY NEGLIGENCE, STRICT
           LIABILITY, ETC.................................................  48
     13.4  Additional Provisions Regarding Environmental Indemnification..  48
     13.5  Additional Provisions Regarding Indemnification................  49
     13.6  Indemnifications Provided by the Owner Trustee in Favor of the
           Other Indemnified Persons......................................  49

SECTION 14   MISCELLANEOUS................................................  50
     14.1  Survival of Agreements.........................................  50
     14.2  No Broker, etc.................................................  50
     14.3  Notices........................................................  51
     14.4  Counterparts...................................................  52
     14.5  Amendments and Termination.....................................  52
     14.6  Headings, etc..................................................  53
     14.7  Parties in Interest............................................  53
     14.8  GOVERNING LAW; WAIVERS OF JURY TRIAL...........................  53
     14.9  Severability...................................................  53
     14.10 Liability Limited..............................................  53
     14.11 Rights of the Credit Parties...................................  55
     14.12 Further Assurances.............................................  55
     14.13 Calculations under Operative Agreements........................  55
     14.14 Confidentiality................................................  55
</TABLE>
<PAGE>

SCHEDULES
---------

Schedule 5.11 - Description Of Tampa Property
<PAGE>

EXHIBITS
--------

A - Forms of Requisition - Sections 4.2 and 5.2

B - Officer's Certificate - Section 5.6

C - Legal Opinion of Lessee's Counsel - Section 6.1(c)

D - Officer's Certificate - Section 6.1(g)

E - Officer's Certificate - Section 6.1(h)

F - Officer's Certificate - Section 6.2(d)

G - Officer's Certificate - Section 6.2(e)

H - Legal Opinion - Section 6.2(f)

I - Description of Material Litigation

J - Confidentiality Agreement

Appendix A   Rules of Usage and Definitions
<PAGE>

                            PARTICIPATION AGREEMENT
                          (Capital One Realty, Inc.)

     THIS PARTICIPATION AGREEMENT (Capital One Realty, Inc.) dated as of
September 3, 1999 (as amended or supplemented from time to time, this
"Agreement") is by and among CAPITAL ONE REALTY, INC., a Delaware corporation
("Lessee" or the "Construction Agent"); CAPITAL ONE BANK, a Virginia banking
corporation, as guarantor ("Guarantor"); FIRST SECURITY BANK, NATIONAL
                            ---------
ASSOCIATION, a national banking association, not individually (in its individual
capacity, the "Trust Company"), except as expressly stated herein, but solely as
               -------------
Owner Trustee under the Capital One Realty Trust 1998-1 (the "Owner Trustee",
                                                              -------------
the "Borrower" or the "Lessor"); the various banks and other lending
     --------          ------
institutions which are parties hereto from time to time as holders of
certificates issued with respect to the Capital One Realty Trust 1998-1 (subject
to the definition of Holders in Appendix A hereto, individually, a "Holder" and
                                ----------                          ------
collectively, the "Holders"); the various banks and other lending institutions
                   -------
which are parties hereto from time to time as lenders (subject to the definition
of Lenders in Appendix A hereto, individually, a "Lender" and collectively, the
              ----------                          ------
"Lenders"); and BANK OF AMERICA, N.A., a national banking association, as the
 -------
agent for the Lenders and respecting the Security Documents, as the agent for
the Lenders and the Holders, to the extent of their interests (in such capacity,
the "Agent").  Capitalized terms used but not otherwise defined in this
     -----
Agreement shall have the meanings set forth in Appendix A hereto.

     This Agreement relates to the Lease, the CORI Trust Estate and the
Advances, Commitments and Holder Commitments related thereto.

     In consideration of the mutual agreements herein contained and other good
and valuable consideration, receipt of which is hereby acknowledged, the parties
hereto hereby agree as follows:

     SECTION 1  THE LOANS.

     The Lenders have agreed to make loans to the Lessor from time to time in an
aggregate principal amount of up to the aggregate amount of the Commitments of
the Lenders in order for the Lessor to acquire the Properties and certain
Improvements and to develop and construct certain Improvements in accordance
with the Agency Agreement and the terms and provisions hereof, and in
consideration of the receipt of proceeds of the Loans, the Lessor will issue the
Notes.  The Loans shall be made and the Notes shall be issued pursuant to the
Credit Agreement.  Pursuant to Section 5 of this Agreement and Section 2 of the
Credit Agreement, the Loans will be made to the Lessor from time to time at the
request of the Construction Agent in consideration for the Construction Agent
agreeing for the benefit of the Lessor, pursuant to the Agency Agreement, to
acquire the Properties, to acquire the Equipment, to construct certain
Improvements and to cause the Lessee to lease the Properties, each in accordance
with the Agency Agreement and the other Operative Agreements.  The Loans and the
obligations of the Lessor under the Credit Agreement shall be secured by the
Collateral.

                                       1
<PAGE>

     SECTION 2   HOLDER FUNDINGS.

     Subject to the terms and conditions of this Agreement and in reliance on
the representations and warranties of each of the parties hereto contained
herein or made pursuant hereto on each date Advances made in accordance with
Section 5 hereof, each Holder shall make a Holder Funding on a pro rata basis to
the Lessor with respect to the Capital One Realty Trust 1998-1 based on its
Holder Commitment in an amount in immediately available funds such that the
aggregate of all Holder Fundings shall be three percent (3%) of the amount of
the Advance being funded on such date; provided, no Holder shall be obligated
for any Holder Funding in excess of its pro rata share of the Available Holder
Commitment; provided further, that the initial Advance hereunder shall consist
of Holder Fundings in an amount equal to $802,157 and Loans in an amount equal
to $936,412.  The aggregate amount of Holder Fundings shall be up to the
aggregate amount of the Holder Commitments.  No prepayment or any other payment
shall be permitted such that the aggregate outstanding Holder Fundings on the
date of such payment or prepayment are less than 3% of the aggregate outstanding
amount of Advances made as of such date, except as provided in Section 8 of the
Credit Agreement.  The representations, warranties, covenants and agreements of
the Holders herein and in the other Operative Agreements are several, and not
joint or joint and several.

     SECTION 3   SUMMARY OF TRANSACTIONS.

     3.1  Operative Agreements.
          ---------------------

     On the date hereof, each of the respective parties hereto and thereto shall
execute and deliver this Agreement, the Lease, the Agency Agreement, the Credit
Agreement, the Trust Agreement, the Security Agreement and such other documents,
instruments, certificates and opinions of counsel as agreed to by the parties
hereto.

     3.2  Property Purchase.
          -----------------

     On each Property Closing Date and subject to the terms and conditions of
this Agreement (a) the Holders will each make a Holder Funding in accordance
with Sections 2 and 5 of this Agreement and the terms and provisions of the
Trust Agreement, (b) the Lenders will each make Loans in accordance with
Sections 1 and 5 of this Agreement and the terms and provisions of the Credit
Agreement, (c) the Lessor will purchase, or lease pursuant to a Ground Lease,
the applicable Property, each to be within an Approved State, identified by the
Construction Agent, in each case pursuant to a Deed and/or Bill of Sale or a
Ground Lease, as the case may be, and grant the Agent a lien on such Property by
execution of the required Security Documents, and (d) if the Property Closing
Date for such Property is also the Basic Term Commencement Date for such
Property, the Agent, the Lessee and the Lessor shall execute and deliver a Lease
Supplement relating to such Property.

                                       2
<PAGE>

     3.3  Construction of Improvements; Lease or Disposition of Property.
          --------------------------------------------------------------

     Construction Advances will be made with respect to particular Improvements
to be constructed and with respect to ongoing construction of particular
Improvements, in each case, pursuant to the terms and conditions of this
Agreement and the Agency Agreement.  The Construction Agent will act as a
construction agent on behalf of the Lessor respecting the construction of such
Improvements and the expenditures of the Construction Advances related thereto.
The Construction Agent shall promptly notify the Lessor upon Completion of the
Improvements and the Lessee shall commence to pay Basic Rent as of the Basic
Term Commencement Date.

     3.4  Ratable Interests of the Holders and the Lenders in the Commitments
          -------------------------------------------------------------------
          and Holder Commitments under the COSI Participation Agreement.
          -------------------------------------------------------------

     Each Holder and Lender agrees at all times (a) (i) that each Tranche A
Lender shall hold the same ratable portion of the aggregate Lender Commitment
for Tranche A Loans as such Tranche A Lender holds with respect to the aggregate
Lender Commitment for Tranche A Loans as defined in the COSI Participation
Agreement, (ii) that each Tranche B Lender shall hold the same ratable portion
of the aggregate Lender Commitment for Tranche B Loans as such Tranche B Lender
holds with respect to the aggregate Lender Commitment for Tranche B Loans as
defined in the COSI Participation Agreement, and (iii) that each Holder shall
hold the same ratable portion of the aggregate Holder Commitment as such Holder
holds with respect to the aggregate Holder Commitment as defined in the COSI
Participation Agreement, and (b) to make advances consistent with such committed
amounts referenced in Section 3.4(a) in accordance with the requirements of the
Operative Agreements, as defined in Appendix A hereto, and in accordance with
the requirements of the Operative Agreements, as defined in Appendix A to the
COSI Participation Agreement.

     SECTION 4   THE CLOSINGS.

     4.1  Initial Closing Date.
          --------------------

     All documents and instruments required to be delivered on the Initial
Closing Date shall be delivered at the offices of Moore & Van Allen, PLLC,
Charlotte, North Carolina, or at such other location as may be determined by the
Lessor, the Agent and the Lessee.

     4.2  Initial Closing Date; Property Closing Dates; Construction Advances.
          -------------------------------------------------------------------

     The Construction Agent shall deliver to the Lessor and the Agent a
requisition (a "Requisition"), in the form attached hereto as Exhibit A or in
                                                              ---------
such other form as is reasonably satisfactory to the Lessor and the Agent, in
connection with (a) the Initial Closing Date relating to the Transaction
Expenses and other fees, expenses and disbursements payable by the Lessor
pursuant to Section 9.1(a); and (b) each Property Closing Date relating to each
Acquisition Advance pursuant to Sections 5.3 and 9.1(b); and (c) each date of a
Construction Advance pursuant to Sections 5.4 and 9.1(b).  Notwithstanding the
foregoing, the Lenders and the Holders may, in

                                       3
<PAGE>

their sole discretion, make Advances pursuant to or in connection with Article
IX and Section 13.6 without a Requisition; provided, however, the failure of
                                           --------  -------
such amounts so funded to be referenced in a Requisition shall not preclude the
Lessee from later contesting the reasonableness of the payment of such amounts,
and any amounts required to be refunded by the Lessor or any third party
following a successful contest shall be available for future Advances to be made
in accordance with the provisions of the Operative Agreements.

     SECTION 5   FUNDING OF ADVANCES; REPORTING REQUIREMENTS ON COMPLETION DATE;
LESSEE DELIVERY OF NOTICES; CERTAIN COVENANTS.

     5.1  General.
          -------

          (a) To the extent funds have been made available to the Lessor as
     Loans by the Lenders and Holder Fundings by the Holders, the Lessor will
     use such funds from time to time in accordance with the terms and
     conditions of this Agreement and the other Operative Agreements (i) to pay
     interest regarding the Loans relating to a Property and to pay the Holder
     Yield regarding the Holder Fundings relating to a Property, in each case to
     the extent accrued under the Credit Agreement or Trust Agreement (as the
     case may be) during the period prior to the Basic Term Commencement Date
     with respect to such Property, (ii) at the direction of the Construction
     Agent to acquire the Properties in accordance with the terms of this
     Agreement, the Agency Agreement and the other Operative Agreements, (iii)
     to make Advances to the Construction Agent to permit the development,
     construction, modification, design, and renovation, as applicable, of
     Improvements in accordance with the terms of the Agency Agreement, and the
     other Operative Agreements, and (iv) to pay Transaction Expenses and
     disbursements payable by the Lessor under Article IX and Section 13.6.

          (b) In lieu of the payment of interest on the Loans and Holder Yield
     on the Holder Fundings on any Scheduled Interest Payment Date with respect
     to any Property during the period prior to the Basic Term Commencement Date
     with respect to such Property and subject to Section 5.8, (i) each Lender's
     Loan shall automatically be increased by the amount of interest accrued and
     unpaid on such Loan for such period (except to the extent that at any time
     such increase would cause such Lender's Loan to exceed such Lender's
     Available Commitment, in which case the Lessee shall pay such excess amount
     to such Lender in immediately available funds on the Basic Term
     Commencement Date, plus interest thereon at the Overdue Rate, and (ii) each
     Holder's Holder Funding shall automatically be increased by the amount of
     Holder Yield accrued and unpaid on such Holder Funding for such period
     (except to the extent that at any time such increase would cause the Holder
     Funding of such Holder to exceed such Holder's Available Holder Commitment,
     in which case the Lessee shall pay such excess amount to such Holder in
     immediately available funds on the Basic Term Commencement Date, plus
     interest thereon at the Overdue Rate). Such increases in a Lender's Loan
     and a Holder's Holder Funding shall occur without any disbursement of funds
     by any Person.

                                       4
<PAGE>

     5.2  Procedures for Funding.
          ----------------------

          (a) The Construction Agent shall designate the date for Advances
     hereunder in accordance with the terms and provisions hereof; provided,
     however, it is understood and agreed that no more than two Advances may be
     requested during any calendar month and the Lenders and the Holders may, in
     their sole discretion, fund Transaction Expenses, fees, expenses and other
     disbursements payable by the Lessor pursuant to or in connection with
     Article IX and Section 13.6 regardless whether the Construction Agent
     provides such designation with respect thereto; and provided, further, not
     more than one of such Advances may be a Eurodollar Loan. Not less than (i)
     three (3) Business Days' prior to the Initial Closing Date and (ii) three
     (3) Business Days prior to the date on which any Construction or
     Acquisition Advance is to be made, the Construction Agent shall deliver to
     the Agent, (A) with respect to the Initial Closing Date and each
     Acquisition Advance, a Requisition as described in Section 4.2 hereof and
     (B) with respect to each Construction Advance, a Requisition identifying
     (among other things) the Property to which such Construction Advance
     relates.

          (b) Each Requisition shall: (i) be irrevocable, (ii) request funds in
     an amount that is not in excess of the total aggregate of the Available
     Commitments plus the Available Holder Commitments at such time, and (iii)
     request that the Holders make a Holder Funding and that the Lenders make
     Loans to the Lessor for the payment of the Property Acquisition Costs (in
     the case of an Acquisition Advance) or other Property Costs (in the case of
     a Construction Advance) that have previously been incurred and were not
     subject to a prior Requisition, in each case as specified in the
     Requisition.

          (c) Subject to the satisfaction of the conditions precedent set forth
     in Sections 5.3, 5.4 or 5.5, as applicable, on each Property Closing Date
     or the date on which the Construction Advance is to be made, as applicable,
     and further subject to the second proviso to the first sentence of Section
     2 hereof respecting the initial Advance hereunder, (i) the Lenders shall
     make Loans to the Lessor in an aggregate amount equal to 97% times the sum
     of (w) the Requested Funds specified in any Requisition and (x) any
     additional amount of Transaction Expenses or other costs as referenced in
     Article IX and any additional amount respecting any indemnity payment as
     referenced in Section 13.6 (unless any such funding of Transaction Expenses
     or any indemnity payment is declined in writing by each Lender and each
     Holder (such decision to be in the sole discretion of each Lender and each
     Holder)), ratably between the Tranche A Lenders and the Tranche B Lenders
     with the Tranche A Lenders funding eighty-six percent (86%) of the
     Requested Funds and the Tranche B Lenders funding eleven percent (11%) of
     the Requested Funds), up to an aggregate principal amount equal to the
     Available Commitments, (ii) each Holder shall make a pro rata Holder
     Funding based on its Holder Commitment in an amount such that the aggregate
     of all Holder Fundings at such time shall be 3% times the sum of (y) the
     Requested Funds specified in such Requisition and (z) any additional amount
     of Transaction Expenses or other costs as referenced in Article IX and any
     additional amount respecting any indemnity payment as referenced in Section
     13.6 (unless any such funding of Transaction Expenses or any indemnity
     payment is declined

                                       5
<PAGE>

     in writing by each Lender and each Holder (such decision to be in the sole
     discretion of each Lender and each Holder)), up to the aggregate advanced
     amount equal to the aggregate of the Available Holder Commitments and
     provided no such Holder Funding shall exceed such Holder's pro rata share
     of the Available Holder Commitments; and (iii) the total amount of such
     Loans and Holder Fundings made on such date shall (a) be used by the Lessor
     to pay Property Acquisition Costs including Transaction Expenses and other
     costs and indemnity payments within three (3) Business Days of the receipt
     by the Lessor of such Advance or (b) be advanced by the Lessor on the date
     of such Advance to the Construction Agent or the Lessee to pay Property
     Costs, as applicable.

          (d) With respect to an Advance obtained by the Lessor to pay for
     Property Acquisition Costs and/or Transaction Expenses or other costs
     payable under Article IX or Section 13.6 hereof and not expended by Lessor
     for such purpose on the date of such Advance, such amounts shall be held by
     the Lessor (or the Agent on behalf of the Lessor) until the applicable
     Property Closing Date or, if such Property Closing Date does not occur
     within three (3) Business Days of the date of the Lessor's receipt of such
     Advance, shall be applied to repay the applicable Advance to the Lenders
     and the Holders and, subject to the terms hereof, and of the Credit
     Agreement and the Trust Agreement, shall remain available for future
     Advances. Any such amounts held by the Lessor (or the Agent on behalf of
     the Lessor) shall be subject to the lien of the Security Agreement.

     5.3  Conditions to the Holders' and the Lenders' Obligations to Advance
          ------------------------------------------------------------------
          Funds for the Acquisition of Property.
          --------------------------------------

     The obligations of the Holders to make a Holder Funding, and of the Lenders
to make Loans to the Lessor, (i) on the Initial Closing Date to pay Transaction
Expenses, fees, expenses and other disbursements payable by the Lessor under
Article IX of this Agreement and (ii) on a Property Closing Date for the purpose
of providing funds to the Lessor necessary to pay the Transaction Expenses,
fees, expenses and other disbursements payable by the Lessor under Article IX of
this Agreement and to acquire a Property (an "Acquisition Advance") in each case
are subject to the satisfaction or waiver of the following conditions precedent:

          (a) the correctness in all material respects on such Property Closing
     Date of the representations and warranties (including without limitation
     the Incorporated Representations and Warranties) of the Lessor, the
     Construction Agent, the Lessee and the Holders contained herein and in each
     of the other Operative Agreements;

          (b) the performance in all material respects by the Construction Agent
     and the Lessee of their respective agreements contained herein and in the
     other Operative Agreements and to be performed by them on or prior to each
     Property Closing Date;

          (c) the Agent shall have received a fully executed counterpart copy of
     the Requisition, appropriately completed;

                                       6
<PAGE>

          (d) title to each Property being acquired on such Property Closing
     Date shall conform to the representations and warranties set forth in
     Section 8.1(c) hereof;

          (e) the Construction Agent shall have delivered to the Lessor a copy
     of the Deed with respect to the Land (if applicable) and existing
     Improvements (if applicable) and a copy of the Bill of Sale with respect to
     the Equipment, respecting such of the foregoing as are being acquired on
     such Property Closing Date, and such Land and existing Improvements shall
     be located in an Approved State;

          (f) there shall not have occurred and be continuing any Default or
     Event of Default under any of the Operative Agreements and no Default or
     Event of Default under any of the Operative Agreements will have occurred
     after giving effect to the Advance requested by such Requisition;

          (g) the Construction Agent shall have delivered to the Agent, title
     insurance commitments to issue policies in favor of the Lessor and the
     Agent from a title insurance company and in form and substance acceptable
     to the Agent, with such title exceptions thereto as are acceptable to the
     Agent;

          (h) the Construction Agent shall have delivered to the Agent and the
     Lessor an environmental site assessment prepared by an independent
     recognized professional acceptable to the Agent and the Lessor and in a
     form and substance that is acceptable to the Agent and the Lessor;

          (i) the Construction Agent shall have delivered to the Agent a survey
     prepared by an independent recognized professional acceptable to the Agent
     and in a form and substance acceptable to the Agent;

          (j) the Construction Agent shall have caused to be delivered to the
     Agent and the Lessor (i) a legal opinion (in form and substance
     satisfactory to the Agent) from counsel located in the state where the
     Property is located and (ii) a good standing certificate for the
     Construction Agent from the appropriate officer of the state in which the
     Property is located;

          (k) the Lessor and the Agent shall be satisfied, in their discretion,
     that the acquisition and/or holding of the Property and the execution of
     the Mortgage Instrument and the other Security Documents will not adversely
     affect the rights of the Lessor, the Holders, the Agent or the Lenders
     under or with respect to the Operative Agreements;

          (l) the Lessor shall have delivered to the Agent and there shall have
     been recorded by the Agent a Mortgage Instrument and the Lender Financing
     Statements respecting such Property in a form acceptable to the Agent and
     all necessary recording fees, documentary stamp taxes and similar amounts
     shall have been paid;

                                       7
<PAGE>

          (m) the Construction Agent shall have delivered to the Agent with
     respect to each Property, a Lease Supplement and a memorandum regarding the
     Lease and such Lease Supplement (such memorandum to be substantially in the
     form attached as Exhibit B to the Lease and in form suitable for
     recording); provided, such items shall be delivered pursuant to this
                 --------
     Section 5.3(m) on the Property Closing Date for such Property only if the
     Basic Term Commencement Date for such Property shall also occur on such
     Property Closing Date;

          (n) the Construction Agent shall have delivered to the Agent with
     respect to each Property or the acquisition of personal property and/or
     fixtures in accordance with the Operative Agreements, Lessor Financing
     Statements executed by the Lessee and the Lessor;

          (o) (i) with respect to each Acquisition Advance, the Available
     Commitment and the Available Holder Commitment (after deducting the
     Unfunded Amount) will be sufficient to acquire the Property and to pay
     interest regarding the Loans and the Holder Yield regarding the Holder
     Fundings relating to all Properties to the extent accrued under the Credit
     Agreement and the Trust Agreement, as the case may be, during the period
     prior to the Basic Term Commencement Date with respect to such Properties;
     and (ii) based upon the construction schedule relating to any Construction
     Period Property, there is sufficient time for Completion of such
     Construction Period Property to occur on or prior to the Construction
     Period Termination Date;

          (p) if the Property is subject to a Ground Lease the Construction
     Agent shall have caused a lease memorandum (in form and substance
     satisfactory to the Agent) to be delivered to the Agent for such Ground
     Lease;

          (q) Counsel for the ground lessor of each Property subject to a Ground
     Lease shall have issued to the Lessee, the Holders, the Lenders and the
     Agent its opinion (in form and substance satisfactory to the Agent);

          (r) the Construction Agent shall have delivered to the Agent a
     preliminary construction budget (the "Construction Budget") for the
     Improvements (if any) to be constructed on such Property;

          (s) the Construction Agent shall have provided evidence of general and
     excess liability insurance with respect to such Property as provided in the
     Lease; and

          (t) in their sole and absolute discretion, the Lenders and the Holders
     shall have agreed to accept, and to fund the respective Loans and Holder
     Fundings regarding, the particular property then under consideration as a
     Property; provided, however, it is hereby understood and agreed that (a)
               --------  -------
     that certain campus facility in Federal Way, Washington, Phase I of which
     contains 10.29 acres and will have a single building of 143,958 square feet
     and Phase II of which contains 11.87 acres is anticipated to have two
     three-story buildings of approximately 100,000 square feet each, one of
     which (including the related real property) may be financed hereunder, and
     (b) that certain 4-story office building at 8715

                                       8
<PAGE>

     Henderson Road, Tampa, Florida 33634, its respective interest in the
     related 5-story parking garage and the related ground lease for the real
     property at such location are acceptable Properties.

     5.4  Conditions to the Holders' and the Lenders' Obligations to Make
          ---------------------------------------------------------------
          Construction Advances for the Ongoing Construction on any Property
          ------------------------------------------------------------------
          Prior to the Construction Period Termination Date.
          --------------------------------------------------

     The obligations of the Holders to make a Holder Funding, and the Lenders to
make Loans, to the Lessor, (i) in connection with all requests for Advances
subsequent to the acquisition of a Property (and to pay the Transaction
Expenses, fees, expense and other disbursements payable by the Lessor under
Article IX of this Agreement in connection therewith) and, (ii) to pay the
Holder Yield regarding the Holder Fundings relating to a Property and interest
regarding the Loans relating to a Property, in each case regarding such Holder
Yield and Interest to the extent accrued and payable under the Credit Agreement
or Trust Agreement (as the case may be), during the period prior to the Basic
Term Commencement Date with respect to such Property, are subject to the
satisfaction or waiver of the following conditions precedent:

          (a) the correctness in all material respects on such date of the
     representations and warranties (including without limitation the
     Incorporated Representations and Warranties) of the Lessor, the
     Construction Agent, the Lessee and the Holders contained herein and in each
     of the other Operative Agreements;

          (b) the performance in all material respects by the Construction Agent
     and the Lessee of their respective agreements contained herein and in the
     other Operative Agreements and to be performed by them on or prior to each
     such date;

          (c) the Agent shall have received a fully executed counterpart of the
     Requisition, appropriately completed;

          (d) (i) based upon the applicable Construction Budget, the Available
     Commitments and the Available Holder Commitment (after deducting the
     Unfunded Amount) will be sufficient to complete the Improvements including
     interest on Loans and yield on Holder Fundings related thereto prior to the
     Basic Term Commencement Date for such Property; and (ii) based upon the
     construction schedule relating to any Construction Period Property, there
     is sufficient time for Completion of such Construction Period Property to
     occur on or prior to the Construction Period Termination Date;

          (e) there shall not have occurred and be continuing any Default or
     Event of Default under any of the Operative Agreements and no Default or
     Event of Default under any of the Operative Agreements will have occurred
     after giving effect to the Construction Advance requested by such
     Requisition;

          (f) the title insurance policy delivered in connection with the
     requirements of Section 5.3(g) shall provide for (or shall be endorsed to
     provide for) insurance in an amount

                                       9
<PAGE>

     at least equal to the maximum total Property Cost indicated by the
     Construction Budget referred to in subparagraph (d) above and there shall
     be no title change or exception objectionable to the Agent;

          (g) the Construction Agent or Lessee shall have delivered to the Agent
     copies of the Plans and Specifications for the applicable Improvements; and

          (h) the Construction Agent or Lessee shall have caused an Appraisal
     regarding such Property on an as-built basis to be provided to the Agent
     from an appraiser selected by the Agent, which Appraisal (including the
     cost of Equipment located at such Property) shall indicate that the Fair
     Market Sale Value of the Property as of the Property Completion Date shall
     be at least equal to 75% of the Property Cost for such Property.

     5.5  Additional Reporting and Delivery Requirements on Completion Date
          -----------------------------------------------------------------
          Respecting Each Property.
          -------------------------

     On the Completion Date for each Property, the Construction Agent shall
deliver to the Agent (with a copy to counsel for the Agent) an Officer's
Certificate in the form attached hereto as Exhibit B specifying (a) the
                                           ---------
Completion Date for the construction of Improvements at the Property and (b) the
aggregate Property Cost for the Property.  Such Officer's Certificate shall also
include, in form reasonably acceptable to the Agent, detailed, itemized
documentation supporting the asserted Property Cost figures and a certification
to the effect that all Improvements have been made in accordance with all
applicable material Legal Requirements, in a good and workmanlike manner in
accordance with the Plans and Specifications and otherwise in full compliance
with the standards and practices of the Construction Agent with respect to
properties and improvements owned by the Construction Agent.  The Agent shall
have the right to contest the information contained in such Officer's
Certificate.  Furthermore, on the Completion Date for each Property, the
Construction Agent shall deliver or cause to be delivered to the Agent (unless
previously delivered to the Agent) originals of the following, each of which
shall be in form reasonably acceptable to the Agent:  (u) an as-built survey for
the applicable Property; (v) insurance certificates respecting the Property as
required hereunder and under the Lease Agreement; (w) a Lease Supplement, (x) a
memorandum of the Lease and such Lease Supplement (in form suitable for
recording), and (y) Lessor Financing Statements executed by the Lessee and the
Lessor.  In addition, as of the Completion Date for such Property the
Construction Agent covenants and agrees that the recording fees, documentary
stamp taxes or similar amounts required to be paid in connection with the
related Mortgage Instrument shall be paid (or shall have been paid) in an amount
required by applicable law.

     5.6  Construction Agent Delivery of Construction Budget Modifications.
          -----------------------------------------------------------------

     The Construction Agent covenants and agrees to deliver to the Agent each
month notification of any modification to any Construction Budget regarding each
Property if such modification increases the cost to construct such Property;
provided, no Construction Budget shall be increased unless (a) the title
insurance policies referenced in Section 5.3(g) are also modified or

                                       10
<PAGE>

endorsed, if necessary, to provide for insurance in an amount that satisfies the
requirements of Section 5.4(f) of this Agreement, and (b) after giving effect to
any such amendment the Construction Budget remains in compliance with the
requirements of Section 5.4(d) and 5.4(h) of this Agreement.

     5.7  Maintenance of the Lessee as a Wholly-Owned Entity.
          ---------------------------------------------------

     From the Initial Closing Date and thereafter until such time as all
obligations of all Credit Parties under the Operative Agreements have been
satisfied and performed in full, Capital One Bank shall retain the Lessee as a
Wholly-Owned Entity.

     5.8  Unilateral Right to Increase the Holder Commitments and the Lender
          ------------------------------------------------------------------
          Commitments.
          ------------

     Notwithstanding any other provision of any Operative Agreement or any
objection by any Person (including without limitation any objection by any
Credit Party), (a) each Holder, in its sole discretion, may unilaterally elect
to increase its Holder Commitment in order to fund amounts due and owing
pursuant to Article IX and/or Section 13.6 and (b) each Lender, in its sole
discretion, may unilaterally elect to increase its Lender Commitment in order to
fund amounts due and owing pursuant to Article IX and/or Section 13.6.

     5.9  Borrower's Right to Increase the Commitments and the Holder
          -----------------------------------------------------------
          Commitments.
          -----------

     The parties hereto hereby acknowledge and agree that, so long as no Default
or Event of Default shall have occurred and be continuing, the Borrower may, at
any one time during the Commitment Period upon five (5) Business Days written
notice to the Agent, increase the Commitments to up to $115,400,000 and the
Holder Commitments to up to $4,600,000; provided, however, that such increase
                                        --------  -------
shall only be effective if the Agent has received (i) pursuant to Section 2.5(a)
of that certain Credit Agreement (Capital One Services, Inc.) dated as of the
Initial Closing Date among the Borrower, the several lenders parties thereto
from time to time and Bank of America, N.A., as Administrative Agent, notice of
a corresponding reduction in the Commitments thereunder and (ii) pursuant to the
Trust Agreement, notice of a corresponding reduction in Holder Commitments
allocable to the COSI Trust Estate.

     5.10  Additional Holder Representations; Lessee's Right to Replace Holder.
           -------------------------------------------------------------------

          (a) At the reasonable written request of the Lessee, each of the
     Holders hereby agrees to use commercially reasonable efforts to provide
     additional representations and warranties (in addition to the
     representations and warranties set forth in Section 7.1(j)) concerning the
     nature and type of financing of Holder Fundings made by each such Holder;
     provided, in no event shall any Holder be obligated (under this Section
     --------
     5.10 or otherwise) to provide any representation or warranty regarding the
     ultimate financial or accounting treatment accorded to, or tax
     characterization of, any such Holder Fundings,

                                       11
<PAGE>

     nor shall the Lessee be entitled to rely on any such representation or
     warranty made by any Holder.

          (b) In the event that any Holder is unable to make a representation,
     as described in Section 5.10(a), to the reasonable satisfaction of the
     Lessee, the Lessee shall have the right, subject to the repayment in full
     of all Advances and all other amounts due such Holder (including all
     amounts due to such Person in its capacity as a Lender) to replace such
     Holder by requiring such Holder to assign, without recourse, its interests,
     rights (except for rights to be indemnified for actions taken while a party
     hereunder) and obligations under the Operative Agreements (including,
     without limitation the Trust Agreement) in accordance with the procedure
     set forth in Section 3.11(c) of the Trust Agreement; provided, to the
                                                          --------
     extent such Holder is also a Lender, the Lessee shall also cause such
     Lender to assign, without recourse, its interests, rights (except for
     rights to be indemnified for actions taken while a party hereunder) and
     obligations under the Operative Agreements (including, without limitation,
     the Credit Agreement) in accordance with the procedure set forth in Section
     2.14(b) of the Credit Agreement.

     5.11  Post-Closing Satisfaction of Conditions Respecting Certain
           ----------------------------------------------------------
          Properties.

     The parties hereto acknowledge and agree that, solely with respect to that
certain parcel of real property located at 8715 Henderson Road, Tampa, Florida
33634, as more particularly described on Schedule 5.11 attached hereto, which
                                         -------------
shall be ground leased by the Lessor as of the Initial Closing Date, one or more
of the conditions precedent relating to a Property Closing Date with respect to
the advance of funds for the purpose of acquiring or ground leasing a Property
set forth in Section 5.3 will not be satisfied as of the Property Closing Date
for such Property.  The Construction Agent hereby covenants and agrees that (i)
each of the conditions set forth in Section 5.3 (other than the conditions set
forth in Sections 5.3(r) and (s)) with respect to such Property will be
satisfied within sixty (60) days after the Property Closing Date for such
Property, and (ii) failure to satisfy such conditions within such time will
constitute an Agency Agreement Event of Default and a Credit Agreement Event of
Default.  The Construction Agent further covenants and agrees that each of the
conditions set forth in Sections 5.3(r) and (s) with respect to such Property
will be satisfied on or before the initial Construction Advance with respect to
such Property.  Except as specifically provided in this Section 5.11, nothing
herein shall be deemed to be a waiver of any rights of the Agent or any
Financing Party to require the satisfaction of any conditions precedent with
respect to any other Advance requested pursuant to the Operative Agreements.

     SECTION 6   CONDITIONS OF THE INITIAL CLOSING.

     6.1  Conditions to the Lessor's and the Holders' Obligations.
          -------------------------------------------------------

     The obligations of the Lessor and the Holders to consummate the
transactions contemplated by this Agreement, including the obligation to execute
and deliver the applicable Operative Agreements to which each is a party on the
Initial Closing Date, are subject to (i) the accuracy and

                                       12
<PAGE>

correctness on the Initial Closing Date of the representations and warranties of
the other parties hereto contained herein, (ii) the accuracy and correctness on
the Initial Closing Date of the representations and warranties of the other
parties hereto contained in any other Operative Agreement or certificate
delivered pursuant hereto or thereto, (iii) the performance by the other parties
hereto of their respective agreements contained herein and in the other
Operative Agreements and to be performed by them on or prior to the Initial
Closing Date and (iv) the satisfaction or waiver by the Lessor and the Holders
of all of the following conditions on or prior to the Initial Closing Date:

          (a) Each of the Operative Agreements to be entered into on the Initial
     Closing Date shall have been duly authorized, executed and delivered by the
     parties thereto, other than the Lessor, and shall be in full force and
     effect, and no Default or Event of Default shall exist thereunder (both
     before and after giving effect to the transactions contemplated by the
     Operative Agreements), and the Lessor shall have received a fully executed
     copy of each of the Operative Agreements (other than the Notes of which it
     shall have received specimens).  The Operative Agreements (or memoranda
     thereof), any supplements thereto and any financing statements and fixture
     filings in connection therewith required under the Uniform Commercial Code
     shall have been filed or shall be promptly filed, if necessary, in such
     manner as to enable the Lessee's counsel to render its opinion referred to
     in Section 6.1(c) hereof;

          (b) All taxes, fees and other charges in connection with the
     execution, delivery, recording, filing and registration of the Operative
     Agreements shall have been paid or provisions for such payment shall have
     been made to the satisfaction of the Lessor and the Agent;

          (c) Counsel for the Lessee acceptable to the other parties hereto
     shall have issued to the Lessor, the Agent, the Lenders and the Holders its
     opinion in the form attached hereto as Exhibit C or in such other form as
                                            ---------
     is reasonably acceptable to such parties;

          (d) All necessary (or in the reasonable opinion of the Agent or its
     counsel, advisable) Governmental Actions, in each case required by any law
     or regulation enacted, imposed or adopted on or after the date hereof or by
     any change in fact or circumstances since the date hereof, shall have been
     obtained or made and be in full force and effect unless the failure to
     obtain such item would not have a Material Adverse Effect;

          (e) No action or proceeding shall have been instituted, nor shall any
     action or proceeding be overtly threatened, before any Governmental
     Authority, nor shall any order, judgment or decree have been issued or
     proposed to be issued by any Governmental Authority or to set aside,
     restrain, enjoin or prevent the full performance of this Agreement, any
     other Operative Agreement or any transaction contemplated hereby or thereby
     which is reasonably likely to have a Material Adverse Effect;

          (f) In the reasonable opinion of the Lessor, the Agent, the Holders
     and their counsel, the transactions contemplated by the Operative
     Agreements do not and will not

                                       13
<PAGE>

     violate any Legal Requirements and do not and will not subject the Lessor,
     the Lenders, the Agent or the Holders to any adverse regulatory
     prohibitions or constraints;

          (g) The Lessor, the Agent and the Holders shall each have received an
     Officer's Certificate, dated as of the Initial Closing Date, of each Credit
     Party in the form attached hereto as Exhibit D or in such other form as is
                                          ---------
     reasonably acceptable to such parties stating that (i) each and every
     representation and warranty of such Credit Party contained in the Operative
     Agreements to which it is a party is true and correct in all material
     respects on and as of the Initial Closing Date; (ii) no Default or Event of
     Default has occurred and is continuing under any Operative Agreement; (iii)
     each Operative Agreement to which such Credit Party is a party is in full
     force and effect with respect to it; and (iv) such Credit Party has
     performed and complied with all covenants, agreements and conditions
     contained herein or in any Operative Agreement required to be performed or
     complied with by it on or prior to the Initial Closing Date;

          (h) The Lessor, the Agent and the Holders shall each have received (i)
     a certificate of the Secretary or an Assistant Secretary of each Credit
     Party in the form attached hereto as Exhibit E or in such other form as is
                                          ---------
     reasonably acceptable to such parties attaching and certifying as to (1)
     the resolutions of its Board of Directors duly authorizing the execution,
     delivery and performance by such Credit Party of each of the Operative
     Agreements to which it is or will be a party, (2) its certificate of
     incorporation and by-laws, in each case certified as of a recent date by
     the Secretary of State of the state of its incorporation and (3) the
     incumbency and signature of persons authorized to execute and deliver on
     its behalf the Operative Agreements to which it is a party and (ii) a good
     standing certificate from the appropriate officer of each Credit Party's
     state of incorporation or formation and the state where such Credit Party's
     principal place of business is located as to its good standing in such
     state(s); and

          (i) As of the Initial Closing Date, there shall not have occurred any
     material adverse change in the consolidated assets, liabilities,
     operations, business or financial condition of the Guarantor and its
     Subsidiaries, taken as a whole, from that set forth in the consolidated
     financial statements of the Guarantor dated March 31, 1999.

     6.2  Conditions to the Lessee's Obligations.
          --------------------------------------

     The obligation of the Lessee to consummate the transactions contemplated by
this Agreement, including the obligation to execute and deliver the Operative
Agreements to which it is a party on the Initial Closing Date, is subject to (i)
the accuracy and correctness on the Initial Closing Date of the representations
and warranties of the other parties hereto contained herein, (ii) the accuracy
and correctness on the Initial Closing Date of the representations and
warranties of the other parties hereto contained in any other Operative
Agreement or certificate delivered pursuant hereto or thereto, (iii) the
performance by the other parties hereto of their respective agreements contained
herein and in the other Operative Agreements, in each case to be performed by
them on or prior to the Initial Closing Date, and (iv) the satisfaction or
waiver by the Lessee of all of the following conditions on or prior to the
Initial Closing Date:

                                       14
<PAGE>

          (a) In the reasonable opinion of the Lessee and its counsel, the
     transactions contemplated by the Operative Agreements do not violate any
     material Legal Requirements and shall not subject Lessee to any adverse
     regulatory prohibitions or constraints, in each case enacted, imposed,
     adopted or proposed since the date hereof;

          (b) No action or proceeding shall have been instituted nor shall any
     action or proceeding be threatened, before any Governmental Authority, nor
     shall any order, judgment or decree have been issued or proposed to be
     issued by any Governmental Authority or to set aside, restrain, enjoin or
     prevent the full performance of this Agreement, any other Operative
     Agreement or any transaction contemplated hereby or thereby which is
     reasonably likely to have a Material Adverse Effect;

          (c) Each of the Operative Agreements shall have been duly authorized,
     executed and delivered by the parties thereto, other than the Lessee, and
     shall be in full force and effect, and no Default, other than Defaults of
     the Lessee, shall exist thereunder, and the Lessee shall have received a
     fully executed copy of each of the Operative Agreements;

          (d) The Lessee and the Agent shall have received an Officer's
     Certificate of the Lessor dated as of such Closing Date in the form
     attached hereto as Exhibit F or in such other form as is reasonably
                        ---------
     acceptable to Lessee and the Agent, stating that (i) each and every
     representation and warranty of the Lessor contained in the Operative
     Agreements to which it is a party is true and correct on and as of the
     Initial Closing Date; (ii) each Operative Agreement to which the Lessor is
     a party is in full force and effect with respect to it, and (iii) the
     Lessor has duly performed and complied with all covenants, agreements and
     conditions contained herein or in any Operative Agreement required to be
     performed or complied with by it on or prior to the Initial Closing Date;

          (e) The Lessee and the Agent shall have received (i) a certificate of
     the Secretary, an Assistant Secretary, Trust Officer or Vice President of
     the Trust Company in the form attached hereto as Exhibit G or in such other
                                                      ---------
     form as is reasonably acceptable to Lessee and the Agent, attaching and
     certifying as to (A) the signing resolutions, (B) its articles of
     incorporation or other equivalent charter documents, as the case may be,
     certified as of a recent date by an appropriate officer of the Trust
     Company, (C) its by-laws and (D) the incumbency and signature of persons
     authorized to execute and deliver on its behalf the Operative Agreements to
     which it is a party and (ii) a good standing certificate from the Office of
     the Comptroller of the Currency regarding the Trust Company; and

          (f) Counsel for the Lessor acceptable to the other parties hereto
     shall have issued to the Lessee, the Holders, the Lenders and the Agent its
     opinion in the form attached hereto as Exhibit H or in such other form as
                                            ---------
     is reasonably acceptable to such parties.

                                       15
<PAGE>

     6.3  Conditions to the Agent's Obligations.
          -------------------------------------

     The obligation of the Agent to consummate the transactions contemplated by
this Agreement on the Initial Closing Date, including the obligation to execute
and deliver each of the Operative Agreements to which it is a party on the
Initial Closing Date, is subject to (i) the accuracy and correctness on the
Initial Closing Date of the representations and warranties of the other parties
hereto contained herein, (ii) the accuracy and correctness on the Initial
Closing Date of the representations and warranties of the other parties hereto
contained in any other Operative Agreement or certificate delivered pursuant
hereto or thereto, (iii) the performance by the other parties hereto of their
respective agreements contained herein and in the other Operative Agreements, in
each case to be performed by them on or prior to the Initial Closing Date, and
(iv) the receipt by the Agent of the items required to be delivered to the Agent
pursuant to this Section 6.

     SECTION 7   REPRESENTATIONS AND WARRANTIES ON THE INITIAL CLOSING DATE.

     7.1  Representations and Warranties of the Holders.
          ---------------------------------------------

     Effective as of the Initial Closing Date, each Holder severally as to
itself, and not jointly, represents and warrants to each of the other parties
hereto that:

          (a) It is duly organized, validly existing and in good standing under
     the laws of the United States of America or the jurisdiction of its
     formation or organization and has the power and authority to carry on its
     business as now conducted and to enter into and perform its obligations
     under each Operative Agreement to which it is or is to be a party and each
     other agreement, instrument and document to be executed and delivered by it
     on or before each Closing Date in connection with or as contemplated by
     each such Operative Agreement to which it is or will be a party;

          (b) The execution, delivery and performance of each Operative
     Agreement to which it is or will be a party have been duly authorized by
     all necessary action on its part and neither the execution and delivery
     thereof, nor the consummation of the transactions contemplated thereby, nor
     compliance by it with any of the terms and provisions thereof (i) requires
     or will require any approval of the partners or stockholders of, or
     approval or consent of any trustee or holder of any indebtedness or
     obligations of, the Holder which have not been obtained, (ii) contravenes
     or will contravene any Legal Requirement applicable to or binding on it
     (except no representation or warranty is made as to any Legal Requirement
     to which it may be subject solely as a result of the activities of the
     Lessee) as of the date hereof, (iii) does or will contravene or result in
     any breach of or constitute any default under, or result in the creation of
     any Lien upon any Property or any of the Improvements (other than Liens
     created by the Operative Agreements) under its certificate of incorporation
     or other equivalent charter documents, as the case may be, or any material
     indenture, mortgage, chattel mortgage, deed of trust, conditional sales
     contract, bank loan or credit agreement or other agreement or instrument to
     which it is a party or by which it or its

                                       16
<PAGE>

     properties is bound or affected or (iv) does or will require any
     Governmental Action by any Governmental Authority (other than arising
     solely by reason of the business, condition or activities of the Lessee or
     any Affiliate thereof or the construction or use of the Properties or the
     Improvements);

          (c) Each Operative Agreement to which it is or will be a party has
     been, or will be, duly executed and delivered by it and constitutes, or
     upon execution and delivery will constitute, a legal, valid and binding
     obligation enforceable against it in accordance with the terms thereof;

          (d) To its knowledge, there is no action or proceeding pending or
     threatened against it before any Governmental Authority that questions the
     validity or enforceability of any Operative Agreement to which it is or
     will become a party or that, if adversely determined, would materially and
     adversely affect its ability to perform its obligations under the Operative
     Agreements to which it is a party;

          (e) It has not assigned or transferred any of its right, title or
     interest in or under the Lease except in accordance with the Operative
     Agreements;

          (f) [Reserved];

          (g) It is not a "holding company" or a "subsidiary company" of a
     "holding company" or an "affiliate" of a "holding company" or a "public
     utility" within the meaning of the Public Utility Holding Company Act of
     1935, as amended, or a "public utility" within the meaning of the Federal
     Power Act, as amended. It is not an "investment company" or a company
     controlled by an "investment company" within the meaning of the Investment
     Company Act or an "investment adviser" within the meaning of the Investment
     Advisers Act of 1940, as amended;

          (h) Except as otherwise contemplated by the Operative Agreements, it
     shall not, nor shall it direct the Lessor to, use the proceeds of any Loan
     or Holder Funding for any purpose other than purchase and/or lease of the
     Properties, the construction of Improvements, the payment of the
     Transaction Expenses and the fees, expenses and other disbursements
     referenced in Sections 9.1 or 13.6 of this Agreement and the payment of the
     interest regarding the Loans and the Holder Yield regarding the Holder
     Fundings which accrues prior to the Rent Commencement Date with respect to
     the Property; and

          (i) It is acquiring its interest in the CORI Trust Estate for its own
     account for investment and not with a view to any distribution.  Neither it
     nor anyone authorized to act on its behalf has taken or will take any
     action which would subject the issuance or sale of any interest in the
     Property, the CORI Trust Estate or the Lease to the registration
     requirements of Section 5 of the Securities Act.  No representation or
     warranty contained in this Section 7.1(i) shall include or cover any action
     or inaction of the Lessee or any Affiliate thereof whether or not
     purportedly on behalf of the Holders, the Borrower or any of their
     Affiliates; and

                                       17
<PAGE>

          (j) It has not and will not (i) finance Holder Advances with
     nonrecourse debt that is collateralized by a Lien on the Construction
     Period Properties, the Properties, or the Lease or cashflows therefrom; or
     (ii) obtain a residual guarantee on the Holder Advances through a letter of
     credit or other form of guarantee.

     7.2  Representations and Warranties of the Borrower.
          ----------------------------------------------

     Effective as of the Initial Closing Date, Trust Company in its individual
capacity and as the Borrower, as indicated, represents and warrants to each of
the other parties hereto as follows, provided, that the representations in the
following paragraphs (h), (i), (j) and (k) are made solely in its capacity as
the Borrower:

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

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

                                       18
<PAGE>

          (c) The Trust Agreement and, assuming the Trust Agreement is the
     legal, valid and binding obligation of the Holders, each other Operative
     Agreement to which Trust Company or the Owner Trustee, as the case may be,
     is or will be a party have been, or on or before such Closing Date will be,
     duly executed and delivered by Trust Company or the Owner Trustee, as the
     case may be, and the Trust Agreement and each such other Operative
     Agreement to which Trust Company or the Owner Trustee, as the case may be,
     is a party constitutes, or upon execution and delivery will constitute, a
     legal, valid and binding obligation enforceable against Trust Company or
     the Owner Trustee, as the case may be, in accordance with the terms
     thereof;

          (d) There is no action or proceeding pending or, to its knowledge,
     threatened to which it is or will be a party, either in its individual
     capacity or as the Owner Trustee, before any Governmental Authority that,
     if adversely determined, would materially and adversely affect its ability,
     in its individual capacity or as Owner Trustee, to perform its obligations
     under the Operative Agreements to which it is a party or would question the
     validity or enforceability of any of the Operative Agreements to which it
     is or will become a party;

          (e) It has not assigned or transferred any of its right, title or
     interest in or under the Lease or the Agency Agreement except in accordance
     with the Operative Agreements;

          (f) No Default or Event of Default under the Operative Agreements
     attributable to it has occurred and is continuing;

          (g) Except as otherwise contemplated in the Operative Agreements, the
     proceeds of the Loans and Holder Fundings shall not be applied by the Owner
     Trustee for any purpose other than the payment of Transaction Expenses and
     the fees, expenses and other disbursements referenced in Sections 9.1(a),
     9.1(b) and 13.6 of this Agreement, the purchase and/or lease of the
     Properties, the acquisition of the Equipment, the construction of
     Improvements and the payment of interest regarding the Loans and the
     payment of the Holder Yield regarding the Holder Fundings, in each case to
     the extent accrued under the Credit Agreement or Trust Agreement (as the
     case may be) during the period prior to the Basic Term Commencement Date
     with respect to a particular Property;

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

                                       19
<PAGE>

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

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

          (k)  The Owner Trustee is not an "investment company" or a company
     controlled by an "investment company" within the meaning of the Investment
     Company Act.

     7.3  Representations and Warranties of the Construction Agent and the
          ----------------------------------------------------------------
          Credit Parties.
          --------------

     Effective as of the Initial Closing Date and the Basic Term Commencement
Date, as applicable, respecting each applicable Property, the Construction Agent
and each Credit Party, unless otherwise specified hereunder, represents and
warrants, as to itself, to each of the other parties hereto that:

          (a)  With respect to the Guarantor, the Incorporated Representations
     and Warranties are true and correct and the Guarantor has delivered to each
     of the Lenders and Holders the financial statements referred to in Section
     8.01 of the Capital One Credit Agreement.

          (b)  The execution and delivery by the Construction Agent or such
     Credit Party of this Agreement and the other Operative Agreements to which
     the Construction Agent or such Credit Party is a party and the performance
     by the Construction Agent or such Credit Party of its respective
     obligations under this Agreement and the other Operative Agreements is
     within the corporate powers of the Construction Agent or such Credit Party,
     has been duly authorized by all necessary corporate action on the part of
     the Construction Agent or such Credit Party (including any necessary
     shareholder action), has received all necessary governmental approval, and
     does not and will not (i) violate any material provision of applicable Law,
     decree, judgment or award which is binding on the Construction Agent or
     such Credit Party or any of their Subsidiaries unless such violation would
     not have a Material Adverse Effect, (ii) contravene or conflict with, or
     result in a breach of, any provision of the Certificate of Incorporation,
     By-Laws or other organizational documents of the Construction Agent or such
     Credit Party or any of their Subsidiaries or of any agreement, indenture,
     instrument or other document which is binding on the Construction Agent or
     such Credit Party or any of their

                                       20
<PAGE>

     Subsidiaries unless such conflict or breach would not have a Material
     Adverse Effect or (iii) result in, or require, the creation or imposition
     of any Lien (other than pursuant to the terms of the Operative Agreements)
     on any asset of the Construction Agent or such Credit Party or any of their
     Subsidiaries.

          (c)  This Agreement is, and upon the execution and delivery thereof
     the other Operative Agreements will be, the legal, valid and binding
     obligation of the Construction Agent or such Credit Party that is a party
     thereto, enforceable against the Construction Agent or such Credit Party
     that is a party thereto in accordance with their terms, except (i) as may
     be limited by bankruptcy, insolvency, receivership, conservatorship,
     reorganization, moratorium or similar laws of general applicability
     affecting the enforcement of creditors' rights and (ii) such enforceability
     may be limited by the application of general principles of equity
     (regardless of whether such enforceability is considered in a proceeding in
     equity or at law). The Construction Agent or such Credit Party has executed
     the various Operative Agreements required to be executed as of such date.

          (d)  [Intentionally Omitted].

          (e)  No Governmental Action by any Governmental Authority or
     authorization, registration, consent, approval, waiver, notice or other
     action by, to or of any other Person is required to authorize or is
     required in connection with (i) the Construction Agent's or such Credit
     Party's execution, delivery or performance of any Operative Agreement or
     (ii) the legality, validity, binding effect or enforceability of any
     Operative Agreement on the Construction Agent or such Credit Party that is
     a party thereto, in each case, except those which have been obtained or
     where failure to obtain would not cause a Material Adverse Effect.

          (f)  Upon the execution and delivery of each Lease Supplement to the
     Lease, (i) the Lessee will have unconditionally accepted the Property
     subject to the Lease Supplement and will have a valid and subsisting
     leasehold interest in the Property, subject only to the Permitted
     Exceptions, and (ii) no offset will exist with respect to any Rent or other
     sums payable under the Lease.

          (g)  Except as otherwise contemplated by the Operative Agreements, the
     Construction Agent shall not use the proceeds of any Holder Funding or Loan
     for any purpose other than the purchase of the Properties, the acquisition
     of the Equipment and the construction of Improvements.

          (h)  All information heretofore or contemporaneously herewith
     furnished by any Credit Party or any of their Subsidiaries to the Agent,
     the Owner Trustee, any Lender or any Holder for purposes of or in
     connection with this Agreement and the transactions contemplated hereby is,
     and all information hereafter furnished by or on behalf of any Credit Party
     or any of their Subsidiaries to the Agent, the Owner Trustee, any Lender or
     any

                                       21
<PAGE>

     Holder pursuant hereto or in connection herewith will be, true and accurate
     (when taken as a whole) in every material respect on the date as of which
     such information is dated or certified, and such information, taken as a
     whole, does not and will not omit to state any material fact necessary to
     make such information, taken as a whole, not misleading.

          (i)  Each Credit Party has (i) initiated a review and assessment of
     all areas within its and each of its Subsidiaries' business and operations
     that would be adversely affected by the "Year 2000 Problem" (that is, the
     risk that computer applications used by such Credit Party or any of its
     Subsidiaries may be unable to recognize and perform properly date-sensitive
     functions involving certain dates prior to, in and following the Year
     2000), (ii) developed a plan for addressing the Year 2000 Problem on a
     timely basis and (iii) initiated implementation of that plan.  Based on the
     foregoing, each Credit Party believes that any reprogramming or
     replacements required to permit the proper functioning, prior to, in and
     following the Year 2000, of (i) such Credit Party's material computer
     systems and (ii) material equipment of such Credit Party containing
     embedded microchips (including systems and equipment supplied by others or
     with which such Credit Party's systems interface) and the verification of
     all such systems and equipment, as so reprogrammed or replaced, as the case
     may be, will be completed by September 1, 1999, except to the extent the
     failure to so complete such reprogramming or replacement could not
     reasonably be expected to have a Material Adverse Effect.  Each Credit
     Party believes that any reprogramming or replacements required to permit
     the proper functioning in and following the Year 2000 of its computer
     systems and any necessary equipment of such Credit Party containing
     embedded microchips and the testing of all such systems and equipment as so
     reprogrammed or replaced will be completed in a manner and to the extent
     that any failure by such Credit Party to complete any such reprogramming,
     replacement or testing will not result in a Default or could not reasonably
     be expected to have a Material Adverse Effect.

     7.4  Representations and Warranties of the Agent.
          -------------------------------------------

     Effective as of the Initial Closing Date, the Agent represents and warrants
to each of the other parties hereto that:

          (a)  It is a national banking association duly organized and validly
     existing under the laws of the United States of America and has the full
     power and authority to enter into and perform its obligations under this
     Agreement and each other Operative Agreement to which it is or will be a
     party;

          (b)  This Agreement and each other Operative Agreement to which it is
     a party have been, or when executed and delivered will be, duly authorized
     by all necessary corporate action on the part of the Agent and have been,
     or on such Closing Date will have been, duly executed and delivered by the
     Agent and, assuming the due authorization, execution and delivery hereof
     and thereof by the other parties hereto and thereto, are, or upon execution
     and delivery thereof will be, legal, valid and binding obligations of the
     Agent, enforceable against it in accordance with their respective terms;

                                       22
<PAGE>

          (c)  The execution, delivery and performance by the Agent of this
     Agreement and each other Operative Agreement to which it is or will be a
     party are not, and will not be, inconsistent with the articles of
     incorporation or by-laws or other charter documents of the Agent, do not
     and will not contravene any applicable Law of the State of Texas or of the
     United States of America governing its activities and will not contravene
     any provision of, or constitute a default under any indenture, mortgage,
     contract or other instrument of which it is a party or by which it or its
     properties are bound, or require any consent or approval of any
     Governmental Authority under any applicable law, rule or regulation of the
     State of Texas or any federal law, rule or regulation of the United States
     of America governing its activities; and

          (d)  Except as otherwise contemplated by the Operative Agreements, the
     Agent shall not, nor shall it direct the Lessor to, use the proceeds of any
     Loan for any purpose other than the purchase of the Properties, the
     acquisition of Equipment, the construction of Improvements and the payment
     of Transaction Expenses, interest regarding the Loans which accrue under
     the Credit Agreement during the period prior to the Basic Term Commencement
     Date with respect to a particular Property and other uses authorized under
     the Operative Agreements.

     SECTION 8  REPRESENTATIONS AND WARRANTIES ON FUNDING DATES.

     8.1  Representations and Warranties on Property Closing Dates.
          --------------------------------------------------------

     The Construction Agent and each Credit Party hereby represents and warrants
as to itself as of each Property Closing Date as follows:

          (a)  The representations and warranties (including the Incorporated
     Representations and Warranties in the case of the Guarantor) of the
     Construction Agent or such Credit Party set forth in the Operative
     Agreements are true and correct in all material respects on and as of such
     Property Closing Date as if made on and as of such date.  The Construction
     Agent or such Credit Party is in all material respects in compliance with
     its respective obligations under the Operative Agreements and there exists
     no Default or Event of Default under any of the Operative Agreements which
     is continuing and which has not been cured within any cure period expressly
     granted under the terms of the applicable Operative Agreement.  No Default
     or Event of Default will occur under any of the Operative Agreements as a
     result of, or after giving effect to, the Advance requested by the
     Requisition on such Property Closing Date;

          (b)  The Properties to be acquired or leased pursuant to a Ground
     Lease are being acquired or ground leased at a price that is not in excess
     of fair market value or fair market rental value, as the case may be, and
     such Properties consist of (i) unimproved Land, or (ii) Land and existing
     Improvements thereon which Improvements are either suitable for occupancy
     at the time of acquisition or will be renovated and/or modified in
     accordance

                                       23
<PAGE>

     with the terms of this Agreement. Each of the Properties is located at the
     location set forth on the applicable Requisition, all of which are in one
     of the Approved States;

          (c)  Upon the acquisition of each Property on such Property Closing
     Date, and at all times thereafter, the Lessor will have good and marketable
     fee simple title to such Property, or, if such Property is the subject of a
     Ground Lease, the Lessor will have a lessee's interest enforceable against
     the ground lessor of such Property in accordance with the terms of such
     Ground Lease, subject only to Permitted Liens;

          (d)  The execution and delivery of each Operative Agreement delivered
     by the Construction Agent or such Credit Party on such Property Closing
     Date and the performance of the obligations of the Construction Agent or
     such Credit Party under each Operative Agreement have been duly authorized
     by all requisite corporate action of the Construction Agent or such Credit
     Party, as applicable;

          (e)  Each Operative Agreement delivered on such Property Closing Date
     by the Construction Agent or such Credit Party has been duly executed and
     delivered by the Construction Agent or such Credit Party;

          (f)  Each Operative Agreement delivered by the Construction Agent or
     such Credit Party on such Property Closing Date is a legal, valid and
     binding obligation of the Construction Agent or such Credit Party,
     enforceable against the Construction Agent or such Credit Party, in
     accordance with its respective terms, except (i) as may be limited by
     bankruptcy, insolvency, receivership, conservatorship, reorganization,
     moratorium or similar laws of general applicability affecting the
     enforcement of creditors' rights and (ii) such enforceability may be
     limited by the application of general principles of equity (regardless of
     whether such enforceability is considered in a proceeding in equity or at
     law);

          (g)  No portion of any Property being acquired by the Lessor on such
     Property Closing Date is located in an area identified as a special flood
     hazard area by the Federal Emergency Management Agency or other applicable
     agency, or if any such Property is located in an area identified as a
     special flood hazard area by the Federal Emergency Management Agency or
     other applicable agency, then flood insurance has been obtained for such
     Property in accordance with Section 14.2(b) of the Lease and in accordance
     with the National Flood Insurance Act of 1968, as amended;

          (h)  The Construction Agent has obtained insurance coverage for each
     Property being acquired by the Lessor on such Property Closing Date which
     meet the requirements of the Lease and all of such coverage is in full
     force and effect;

          (i)  Each Property being acquired by the Lessor on such Property
     Closing Date complies with all Legal Requirements (including, without
     limitation, all zoning and land use laws and Environmental Laws), except to
     the extent that failure to comply therewith would not, individually or in
     the aggregate, have a Material Adverse Effect; and

                                       24
<PAGE>

          (j)  All utility services and facilities necessary for the
     construction of the Improvements existing on, or to be constructed after,
     such Property Closing Date (including, without limitation, gas, electrical,
     water and sewage services and facilities) are available at the boundaries
     of the real property upon which such Improvements exist or will be
     constructed on each such Property prior to the Completion Date for such
     Property.

     8.2  Representations and Warranties Upon Initial Construction Advances.
          -----------------------------------------------------------------

     The Construction Agent and each Credit Party hereby represents and warrants
as to itself as of each date on which an Initial Construction Advance is made as
follows:

          (a)  The representations and warranties (including the Incorporated
     Representations and Warranties in the case of the Guarantor) of the
     Construction Agent or such Credit Party set forth in the Operative
     Agreements are true and correct in all material respects on and as of the
     date of such Initial Construction Advance as if made on and as of such
     date. The Construction Agent or such Credit Party is in all material
     respects in compliance with its respective obligations under the Operative
     Agreements and there exists no Default or Event of Default under any of the
     Operative Agreements.  No Default or Event of Default will occur under any
     of the Operative Agreements as a result of, or after giving effect to, the
     Advance requested by the Requisition on such date;

          (b)  The Lessor has good and marketable fee simple title to each
     Property, or, if such Property is the subject of a Ground Lease, the Lessor
     has a lessee's interest enforceable against the ground lessor in accordance
     with the terms of such Ground Lease, subject only to Permitted Liens;

          (c)  [Intentionally Omitted]

          (d)  All consents, licenses, permits, authorizations, assignments and
     building permits required as of the date on which such Advance is made by
     all material Legal Requirements or pursuant to the terms of any contract,
     indenture, instrument or agreement for construction, completion, occupancy,
     operation, leasing or subleasing of each Property with respect to which an
     Advance is being made have been obtained and are in full force and effect,
     except to the extent that the failure to so obtain would not, individually
     or in the aggregate, have a Material Adverse Effect;

          (e)  The Construction Agent has obtained insurance coverage covering
     the Property which is the subject of such Advance which meets the
     requirements of Section 2.6 of the Agency Agreement before commencing
     construction, repairs or modifications, as the case may be, and such
     coverage is in full force and effect;

          (f)  The Improvements which are the subject of the Advance, as
     improved in accordance with the Plans and Specifications, will comply as of
     the applicable Completion Date with all material Legal Requirements and
     Insurance Requirements (including, without limitation, all zoning and land
     use laws and Environmental Laws), except to the extent the

                                       25
<PAGE>

     failure to comply therewith would not, individually or in the aggregate,
     have a Material Adverse Effect. The Plans and Specifications have been or
     will be prepared in accordance with all applicable Legal Requirements
     (including, without limitation, all applicable Environmental Laws and
     building, planning, zoning and fire codes), except to the extent the
     failure to comply therewith would not, individually or in the aggregate,
     have a Material Adverse Effect, and upon completion of such Improvements in
     accordance with the Plans and Specifications, such Improvements will not
     encroach in any manner onto any adjoining land (except as permitted by
     express written easements) and such Improvements and the use thereof by the
     Lessee and its agents, assignees, employees, invitees, lessees, licensees
     and tenants will comply as of the applicable Completion Date in all
     respects with all applicable Legal Requirements (including, without
     limitation, all applicable Environmental Laws and building, planning,
     zoning and fire codes), except to the extent the failure to comply
     therewith would not, individually or in the aggregate, have a Material
     Adverse Effect. Upon completion of such Improvements in accordance with the
     Plans and Specifications, (i) there will be no material defects to such
     Improvements including, without limitation, the plumbing, heating, air
     conditioning and electrical systems thereof and (ii) all water, sewer,
     electric, gas, telephone and drainage facilities and all other utilities
     required to adequately service such Improvements for their intended use
     will be available pursuant to adequate permits (including any that may be
     required under applicable Environmental Laws), except to the extent that
     failure to obtain any such permit would not, individually or in the
     aggregate, have a Material Adverse Effect. There is no action, suit or
     proceeding (including any proceeding in condemnation or eminent domain or
     under any Environmental Law) pending or, to the best knowledge of the
     Lessee or the Construction Agent, overtly threatened which adversely
     affects the title to, or the use, operation or value of, such Properties.
     No fire or other casualty with respect to such Properties has occurred
     which fire or other casualty has had a Material Adverse Effect. All
     utilities serving the related Properties, or proposed to serve the related
     Properties in accordance with the Plans and Specifications, are located in
     (and in the future will be located in) and vehicular access to such
     Improvements is provided by (or will be provided by), either public rights-
     of-way abutting the related Property or Appurtenant Rights. All licenses,
     approvals, authorizations, consents, permits (including, without
     limitation, building, demolition and environmental permits, licenses,
     approvals, authorizations and consents), easements and rights-of-way,
     including proof of dedication, required for (i) the use, treatment,
     storage, transport, disposal or disposition of any Hazardous Substance on,
     at, under or from the real property underlying such Improvements during the
     construction of such Improvements and the use and operation of such
     Improvements following such construction, (ii) the construction of such
     Improvements in accordance with the Plans and Specifications and the Agency
     Agreement and (iii) the use and operation of such Improvements following
     such construction with the applicable Equipment which such Improvements
     support for the purposes for which they were intended have either been
     obtained from the appropriate Governmental Authorities having jurisdiction
     or from private parties, as the case may be, or will be obtained from the
     appropriate Governmental Authorities having jurisdiction or from private
     parties, as the case may be, prior to commencing any such construction or
     use and operation, as applicable; and

                                       26
<PAGE>

          (g)  All conditions precedent contained in this Agreement and in the
     other Operative Agreements relating to the initial Advance to the
     Construction Agent of funds for the purpose of commencing construction,
     repairs or modifications on any Property have been substantially satisfied.

     8.3  Representations and Warranties Upon the Date of Each Construction
          -----------------------------------------------------------------
          Advance That Is Not An Initial Advance.
          ---------------------------------------

     The Construction Agent and each Credit Party hereby represents and warrants
as to itself as of each date on which a Construction Advance is made, when such
Advance is not an Initial Construction Advance, as follows:

          (a)  The representations and warranties of the Construction Agent or
     such Credit Party set forth in the Operative Agreements (including the
     representations and warranties set forth in Section 8.2 and, in the case of
     the Guarantor, the Incorporated Representations and Warranties) are true
     and correct in all material respects on and as of the date of such
     Construction Advance as if made on and as of such date. The Construction
     Agent or such Credit Party is in all material respects in compliance with
     its respective obligations under the Operative Agreements and there exists
     no Default or Event of Default under any of the Operative Agreements which
     is continuing and which has not been cured within any cure period expressly
     granted under the terms of the applicable Operative Agreement. No Default
     or Event of Default will occur under any of the Operative Agreements as a
     result of, or after giving effect to, the Advance requested by the
     Requisition on such date;

          (b)  Construction of the Improvements to date has been performed in a
     good and workmanlike manner, substantially in accordance with the Plans and
     Specifications and in compliance with all Insurance Requirements and
     material Legal Requirements, except to the extent noncompliance with any
     Legal Requirements would not, individually or in the aggregate, have a
     Material Adverse Effect;

          (c)  All consents, licenses, permits, authorizations, assignments and
     building permits required as of the date on which such Advance is made by
     all material Legal Requirements or pursuant to the terms of any contract,
     indenture, instrument or agreement for construction, completion, occupancy,
     operation, leasing or subleasing of each Property have been obtained and
     are in full force and effect except to the extent the failure to so obtain
     would not, individually or in the aggregate, have a Material Adverse
     Effect;

          (d)  When completed, the Improvements shall be wholly within any
     building restriction lines (unless consented to by applicable Government
     Authorities), however established; and

               (i)   Assuming that the applicable UCC Financing Statements and
     Mortgage Instruments have been filed in the filing offices designated by
     the Lessee or the Construction Agent, the Advance is secured by the Liens
     of the Security Agreement and such Mortgage Instruments, and (ii) there
     have been no Liens against the applicable

                                       27
<PAGE>

     Improvements since the filing of the Lender Financing Statements and such
     Mortgage Instruments other than Permitted Liens.

     The Construction Agent and each Credit Party further acknowledges that upon
the acceptance and use of the funds by the Construction Agent or the Lessee, as
the case may be, on behalf of the Lessor that all such representations and
warranties remain true and correct on the date of such Advance and that all
consents and approvals have been obtained prior to the date of such Advance.

                             SECTION 8B. GUARANTY

     8B.1. Guaranty of Payment and Performance.
           -----------------------------------

     Subject to Section 8B.7, the Guarantor hereby unconditionally and
irrevocably guarantees to each Financing Party the prompt payment and
performance of the Company Obligations in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration or otherwise) or when such
is otherwise to be performed; provided, notwithstanding the foregoing, the
                              --------
obligations of the Guarantor under this Section 8B shall not constitute a direct
guaranty of the indebtedness of the Lessor evidenced by the Notes but rather a
guaranty of the Company Obligations arising under the Operative Agreements. This
Section 8B is a guaranty of payment and performance and not of collection and is
a continuing guaranty and shall apply to all Company Obligations whenever
arising. The exercise of any rights granted to the Financing Parties under this
Section 8B shall be in accordance with the provisions of Section 10.2(j) and
10.6.

     8B.2. Obligations Unconditional.
           -------------------------

     The Guarantor agrees that the obligations of the Guarantor hereunder are
irrevocable, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Operative Agreements, or
any other agreement or instrument referred to therein, or any substitution,
release or exchange of any other guarantee of or security for any of the Company
Obligations, and, to the fullest extent permitted by applicable law,
irrespective of any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge or defense of a surety, guarantor or
co-obligor, it being the intent of this Section 8B.2 that the obligations of the
Guarantor hereunder shall be absolute and unconditional under any and all
circumstances. The Guarantor agrees that this Section 8B may be enforced by the
Financing Parties without the necessity at any time of resorting to or
exhausting any other security or collateral and without the necessity at any
time of having recourse to the Notes, the Certificates or any other of the
Operative Agreements or any collateral, if any, hereafter securing the Company
Obligations or otherwise and the Guarantor hereby waives the right to require
the Financing Parties to proceed against the Construction Agent, the Lessee or
any other Person (including without limitation a co-guarantor) or to require the
Financing Parties to pursue any other remedy or enforce any other right. The
Guarantor further agrees that it hereby waives any and all right of subrogation,
indemnity, reimbursement or contribution against the Lessee and the Construction
Agent or any other guarantor of the Company Obligations for amounts paid under
this Section 8B until such time as the Loans, Holder Fundings, accrued but
unpaid interest, accrued but unpaid Holder Yield and all

                                       28
<PAGE>

other amounts owing under the Operative Agreements have been paid in full.
Without limiting the generality of the waiver provisions of this Section 8B, the
Guarantor hereby waives any rights to require the Financing Parties to proceed
against the Construction Agent, the Lessee or any co-guarantor or to require
Lessor to pursue any other remedy or enforce any other right, including without
limitation, any and all rights under N.C. Gen. Stat. (S) 26-7 through 26-9. The
Guarantor further agrees that nothing contained herein shall prevent the
Financing Parties from suing on any Operative Agreement or foreclosing any
security interest in or Lien on any collateral, if any, securing the Company
Obligations or from exercising any other rights available to it under any
Operative Agreement, or any other instrument of security, if any, and the
exercise of any of the aforesaid rights and the completion of any foreclosure
proceedings shall not constitute a discharge of the Guarantor's obligations
hereunder; it being the purpose and intent of the Guarantor that its obligations
hereunder shall be absolute, independent and unconditional under any and all
circumstances; provided that any amounts due under this Section 8B which are
               --------
paid to or for the benefit of any Financing Party shall reduce the Company
Obligations by a corresponding amount (unless required to be rescinded at a
later date).  Neither any Guarantor's obligations under this Section 8B nor any
remedy for the enforcement thereof shall be impaired, modified, changed or
released in any manner whatsoever by an impairment, modification, change,
release or limitation of the liability of the Construction Agent or the Lessee
or by reason of the bankruptcy or insolvency of the Construction Agent or the
Lessee.  The Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Company Obligations and notice of or proof of
reliance by any Financing Party upon this Section 8B or acceptance of this
Section 8B.  The Company Obligations shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon this Section 8B.  All dealings between the Construction Agent, the
Lessee and the Guarantor, on the one hand, and the Financing Parties, on the
other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon this Section 8B.

     8B.3.  Modifications.
            -------------

     The Guarantor agrees that (a) all or any part of the security now or
hereafter held for the Company Obligations, if any, may be exchanged,
compromised or surrendered from time to time; (b) no Financing Party shall have
any obligation to protect, perfect, secure or insure any such security
interests, liens or encumbrances now or hereafter held, if any, for the Company
Obligations or the properties subject thereto; (c) the time or place of payment
of the Company Obligations may be changed or extended, in whole or in part, to a
time certain or otherwise, and may be renewed or accelerated, in whole or in
part; (d) the Construction Agent, the Lessee and any other party liable for
payment under the Operative Agreements may be granted indulgences generally; (e)
any of the provisions of the Notes, the Certificates or any of the other
Operative Agreements may be modified, amended or waived; (f) any party
(including any co-guarantor) liable for the payment thereof may be granted
indulgences or be released; and (g) any deposit balance for the credit of the
Construction Agent, the Lessee or any other party liable for the payment of the
Company Obligations or liable upon any security therefor may be released, in
whole or in part, at, before or after the stated, extended or accelerated
maturity of the Company Obligations, all without notice to or further assent by
the Guarantor, which shall remain bound thereon, notwithstanding any such

                                       29
<PAGE>

exchange, compromise, surrender, extension, renewal, acceleration, modification,
indulgence or release.

     8B.4.  Waiver of Rights.
            ----------------

     The Guarantor expressly waives to the fullest extent permitted by
applicable law: (a) notice of acceptance of this Section 8B by any Financing
Party and of all extensions of credit or other Advances to the Construction
Agent and the Lessee by the Lenders pursuant to the terms of the Operative
Agreements; (b) presentment and demand for payment or performance of any of the
Company Obligations; (c) protest and notice of dishonor or of default with
respect to the Company Obligations or with respect to any security therefor; (d)
notice of any Financing Party obtaining, amending, substituting for, releasing,
waiving or modifying any security interest, lien or encumbrance, if any,
hereafter securing the Company Obligations, or any Financing Party's
subordinating, compromising, discharging or releasing such security interests,
liens or encumbrances, if any; and (e) all other notices to which the Guarantor
might otherwise be entitled. Notwithstanding anything to the contrary herein,
the Guarantor's payments hereunder shall be due five (5) Business Days after
written demand by the Agent to the Lessee or the Guarantor for such payment
(unless the Company Obligations are automatically accelerated pursuant to the
applicable provisions of the Operative Agreements or are deemed accelerated as
provided in Section 8B.6, in which case the Guarantor's payments shall be
automatically due).

     8B.5.  Reinstatement.
            -------------

     The obligations of the Guarantor under this Section 8B shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Company Obligations is rescinded or
must be otherwise restored by any holder of any of the Company Obligations,
whether as a result of any proceedings in bankruptcy or reorganization or
otherwise, and the Guarantor agrees that it will indemnify each Financing Party
on demand for all reasonable costs and expenses (including, without limitation,
reasonable fees of counsel) incurred by any Financing Party in connection with
such rescission or restoration, including without limitation any such costs and
expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any
bankruptcy, insolvency or similar law.

     8B.6.  Remedies.
            --------

     The Guarantor agrees that, as between the Guarantor, on the one hand, and
each Financing Party, on the other hand, the Company Obligations may be declared
to be forthwith due and payable as provided in the applicable provisions of the
Operative Agreements (and shall be deemed to have become automatically due and
payable on an Event of Default specified in Section 17.1(h), (i) or (j) of the
Lease) notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing such Company Obligations from becoming automatically
due and payable) as against any other Person and that, in the event of such
declaration (or such Company Obligations being deemed to have become
automatically due and payable), such Company Obligations (whether or not due and
payable by any other Person) shall forthwith become due and

                                       30
<PAGE>

payable by the Guarantor in accordance with the applicable provisions of the
Operative Agreements.

     8B.7.  Termination of Guaranty.
            -----------------------

     Subject to Section 8B.5, upon the satisfaction of the Company Obligations
in full, regardless of the source of payment, the Guarantor's obligations
hereunder shall be deemed satisfied, discharged and terminated other than
indemnifications set forth herein that expressly survive.

     8B.8.  Payment of Amounts to the Agent.
            -------------------------------

     Each Financing Party hereby instructs the Guarantor, and the Guarantor
hereby acknowledges and agrees, that until such time as the Loans and the Holder
Fundings are paid in full and the Liens evidenced by the Security Agreement and
the Mortgage Instruments have been released any and all Rent (excluding Excepted
Payments which shall be payable to each Holder or other Person as appropriate)
and any and all other amounts of any kind or type under any of the Operative
Agreements due and owing or payable to any Person shall instead be paid directly
to the Agent (excluding Excepted Payments which shall be payable to each Holder
or other Person as appropriate) or as the Agent may direct from time to time for
allocation and distribution in accordance with the procedures set forth in
Section 10.4 hereof and Section 8 of the Credit Agreement.

     8B.9.  Denial or Disaffirmance of Guaranty.
            -----------------------------------

     Notwithstanding any provision to the contrary contained herein or in any
other Operative Agreement, the parties hereto agree that, unless released in
connection with the Operative Agreements, if the guaranty given by the Guarantor
under Section 8B of the Participation Agreement or any material provision
thereof shall cease to be in full force or effect, or the Guarantor or any
Person acting on behalf of the Guarantor shall deny or disaffirm the Guarantor's
obligations under such guaranty, then the Guarantor shall automatically, without
notice and without any further act, be deemed to be an additional construction
agent (or a co-construction agent) and/or an additional lessee (or co-lessee)
under the Operative Agreements with the Construction Agent and/or the Lessee, as
the case may be, and shall be jointly and severally liable with the Construction
Agent and/or the Lessee for the payment and performance of any obligations of
the Construction Agent and/or the Lessee under the Operative Agreements as
though the Guarantor was originally a party to such Operative Agreements in such
capacity or capacities.

     SECTION 9  PAYMENT OF CERTAIN EXPENSES.

     9.1  Transaction Expenses.
          --------------------

          (a)  Lessor agrees on the Initial Closing Date, to pay, or cause to be
     paid, all reasonable fees, expenses and disbursements of the various legal
     counsels for the Lessor,

                                       31
<PAGE>

     the Lessee and the Agent in connection with the transactions contemplated
     by the Operative Agreements and incurred in connection with such Initial
     Closing Date, including all Transaction Expenses (arising from the Initial
     Closing Date), and all other reasonable fees, expenses and disbursements in
     connection with such Initial Closing Date, including, without limitation,
     all fees, taxes and expenses for the recording, registration and filing of
     documents; provided, however, the Lessor shall pay such amounts described
     in this Section 9.1(a) only if funds are made available by the Lenders and
     the Holders in an amount sufficient to allow such payment and without
     regard to whether such amounts are referenced in any Requisition; provided,
                                                                       --------
     the failure of such amounts so funded to be referenced in a Requisition
     shall not preclude the Lessee from later contesting the reasonableness of
     the payment of such amounts. On the Initial Closing Date after satisfaction
     of the conditions precedent for such date (excluding the requirement that a
     Requisition be delivered), the Holders shall make Holder Fundings and the
     Lenders shall make Loans to the Lessor to pay for the Transaction Expenses,
     fees, expenses and other disbursements referenced in this Section 9.1(a).

          (b)  Lessor agrees on each Property Closing Date, on the date of any
     Construction Advance and on the Completion Date to pay, or cause to be
     paid, all reasonable fees, expenses and disbursements of the various legal
     counsels for the Lessor, the Lessee and the Agent in connection with the
     transactions contemplated by the Operative Agreements and billed in
     connection with such Advance or such Completion Date including all
     Transaction Expenses, all fees, expenses and disbursements incurred with
     respect to the various items referenced in Sections 5.3, 5.4, 5.5 and/or
     5.6 (including without limitation any premiums for title insurance policies
     and charges for any updates to such policies) and all other reasonable
     fees, expenses and disbursements in connection with such Advance or such
     Completion Date including, without limitation, all expenses relating to and
     all fees, taxes and expenses for the recording, registration and filing of
     documents; provided, however, the Lessor shall pay such amounts described
     in this Section 9.1(b) only if funds are made available by the Lenders and
     the Holders in an amount sufficient to allow such payment and without
     regard to whether such amounts are referenced in any Requisition; provided,
                                                                       --------
     the failure of such amounts so funded to be referenced in a Requisition
     shall not preclude the Lessee from later contesting the reasonableness of
     the payment of such amounts. On each Property Closing Date, on the date of
     any Construction Advance or any Completion Date, after satisfaction of the
     conditions precedent for such date (excluding the requirement that a
     Requisition be delivered), the Holders shall make a Holder Funding and the
     Lenders shall make Loans to the Lessor to pay for the Transaction Expenses,
     fees, expenses and other disbursements referenced in this Section 9.1(b).

     9.2  [Reserved].
           --------

     9.3  Certain Fees and Expenses.
          -------------------------

     Lessor agrees to pay or cause to be paid (i) the initial and annual Owner
Trustee's fee and all reasonable expenses of the Owner Trustee and any necessary
co-trustees (including without limitation reasonable counsel fees and expenses)
or any successor owner trustee, for acting as

                                       32
<PAGE>

owner trustee under the Trust Agreement and (ii) all reasonable costs and
expenses incurred by the Credit Parties, the Construction Agent, the Agent, the
Lenders, the Holders or the Lessor in entering into any Lease Supplement and any
future amendments or supplements with respect to any of the Operative
Agreements, whether or not such Lease Supplement, amendments or supplements are
ultimately entered into, or giving or withholding of waivers of consents hereto
or thereto, which have been requested by the Lessor, the Holders, any Credit
Party, the Construction Agent, or the Agent; provided, however, the Lessor shall
                                             --------  -------
pay such amounts described in this Section 9.3 only if funds are made available
by the Lenders and the Holders in an amount sufficient to allow such payment and
without regard to whether such amounts are referenced in any Requisition.
Notwithstanding the foregoing, the Lessee agrees to pay or cause to be paid any
amounts referenced in the immediately preceding sentence to the extent such
amounts are due and payable after the Construction Period Termination Date. The
Lessee agrees to pay or cause to be paid (i) all reasonable costs and expenses
incurred by the Lessor, the Holders, the Lenders or the Agent in connection with
any exercise of remedies under any Operative Agreement or any purchase of any
Property by the Lessee pursuant to Article XX of the Lease and (ii) all
reasonable costs and expenses incurred by the Credit Parties, the Construction
Agent, the Agent, the Lenders, the Holders or the Lessor in connection with any
transfer or conveyance of any Property, whether or not such transfer or
conveyance is ultimately accomplished.

     9.4   Facility Fee.
           ------------

     The Lessor agrees to pay to the Agent for the account of the Lenders and
the Holders a facility fee (the "Facility Fee") computed at a rate per annum
equal to Applicable Percentage for the Facility Fee multiplied times the sum of
(x) the aggregate Commitments (whether used or unused) and (y) the aggregate
Holder Commitments (whether used or unused); provided, however, the Lessor shall
                                             --------  -------
pay such amounts described in this Section 9.4 only if funds are made available
by the Lenders and the Holders in an amount sufficient to allow such payment and
without regard to whether such amounts are referenced in any Requisition.
Notwithstanding the foregoing, the Lessee agrees to pay or cause to be paid any
amounts referenced in the immediately preceding sentence to the extent such
amounts are due and payable or are outstanding after the earlier of the last
Completion Date for all Properties or the Construction Period Termination Date.
Such Facility Fee shall be calculated on the basis of 360-day year from the
actual days elapsed and shall be payable quarterly in arrears on each Facility
Fee Payment Date. If all or a portion of any such Facility Fee shall not be paid
when due, such overdue amount shall bear interest, payable on demand, at a rate
per annum equal to the ABR plus three percent (3%) from the date of such non-
payment until such amount is paid in full (after as well as before judgment).

     SECTION 10  OTHER COVENANTS AND AGREEMENTS.

     10.1  Cooperation with the Construction Agent or the Lessee.
           -----------------------------------------------------

     The Holders, the Lessor (at the direction of the Holders) and the Agent
shall, to the extent reasonably requested by the Construction Agent or Lessee
(but without assuming additional liabilities on account thereof), cooperate with
the Construction Agent or the Lessee in connection with its covenants contained
herein including, without limitation, at any time and from time to time,

                                       33
<PAGE>

upon the request of the Construction Agent or the Lessee to promptly and duly
execute and deliver any and all such further instruments, documents and
financing statements (and continuation statements related thereto) as the
Construction Agent or the Lessee may reasonably request in order to perform such
covenants.

     10.2  Covenants of the Owner Trustee and the Holders.
           ----------------------------------------------

     Each of the Owner Trustee and the Holders hereby agree that so long as this
Agreement is in effect:

           (a)  The Owner Trustee (both in its trust capacity and in its
     individual capacity) will not create or permit to exist at any time, and
     will, at its own cost and expense, promptly take such action as may be
     necessary duly to discharge, or to cause to be discharged, all Lessor Liens
     on the Properties attributable to it; provided, however, that the Owner
     Trustee shall not be required to so discharge any such Lessor Lien while
     the same is being contested in good faith by appropriate proceedings
     diligently prosecuted so long as such proceedings shall not involve any
     material danger of impairment of the Liens of the Security Documents or of
     the sale, forfeiture or loss of, and shall not interfere with the use or
     disposition of, any Property or title thereto or any interest therein or
     the payment of Rent;

           (b)   Without prejudice to any right under the Trust Agreement of the
     Owner Trustee to resign (subject to the requirement set forth in the Trust
     Agreement that such resignation shall not be effective until a successor
     shall have agreed to accept such appointment), or the Holders' rights under
     the Trust Agreement to remove the institution acting as Owner Trustee
     (after consent to such removal by the Agent as provided in the Trust
     Agreement), each of the Holders and the Owner Trustee hereby agrees with
     the Lessee and the Agent (i) not to terminate or revoke the trust created
     by the Trust Agreement except as permitted by Article VIII of the Trust
     Agreement, (ii) not to amend, supplement, terminate or revoke or otherwise
     modify any provision of the Trust Agreement in such a manner as to
     adversely affect the rights of any such party without the prior written
     consent of such party and (iii) to comply with all of the terms of the
     Trust Agreement, the nonperformance of which would adversely affect such
     party;

           (c)   The Owner Trustee or any successor may resign or be removed by
     the Holders as Owner Trustee, a successor Owner Trustee may be appointed
     and a corporation may become the Owner Trustee under the Trust Agreement,
     only in accordance with the provisions of Article IX of the Trust Agreement
     and, with respect to such appointment, with the consent of the Lessee,
     which consent shall not be unreasonably withheld or delayed;

           (d)   The Owner Trustee, in its capacity as Owner Trustee under the
     Trust Agreement, and not in its individual capacity, shall not contract
     for, create, incur or assume any indebtedness, or enter into any business
     or other activity, other than pursuant to or under the Operative
     Agreements;

                                       34
<PAGE>

           (e)   The Holders will not instruct the Owner Trustee to take any
     action in violation of the terms of any Operative Agreement;

           (f)   Neither any Holder nor the Owner Trustee shall (i) commence any
     case, proceeding or other action with respect to the Owner Trustee under
     any existing or future law of any jurisdiction, domestic or foreign,
     relating to bankruptcy, insolvency, reorganization, arrangement, winding-
     up, liquidation, dissolution, composition or other relief with respect to
     it or its debts, or (ii) seek appointment of a receiver, trustee, custodian
     or other similar official with respect to the Owner Trustee or for all or
     any substantial benefit of the creditors of the Owner Trustee; and neither
     any Holder nor the Owner Trustee shall take any action in furtherance of,
     or indicating its consent to, approval of, or acquiescence in, any of the
     acts set forth in this paragraph;

           (g)   The Owner Trustee shall give prompt notice to the Lessee and
     the Agent if the Owner Trustee's chief place of business or chief executive
     office, or the office where the records concerning the accounts or contract
     rights relating to the Property are kept, shall cease to be located at 79
     South Main Street, Salt Lake City, Utah 84111, or if it shall change its
     name;

           (h)   Provided that no Lease Default or Lease Event of Default has
     occurred and is continuing, the Owner Trustee shall not, without the prior
     written consent of the Lessee and the Guarantor, consent to or permit any
     amendment, supplement or other modification of the terms and provisions of
     the Credit Agreement or the Notes;

           (i)   The Owner Trustee shall not consent to or permit any amendment,
     supplement or other modification of the terms and provisions of any
     Operative Agreement, without the prior written consent of the Agent and, so
     long as no Default or Event of Default shall have occurred and be
     continuing and, in the case of any amendment, supplement or other
     modification of Section 8.1 of the Credit Agreement, so long as Lessee
     continues to have rights in any Property, the Lessee (such consent not to
     be unreasonably withheld or delayed) except as described in Section 10.5 of
     this Agreement; and

           (j)   The Owner Trustee (i) shall take such actions and shall refrain
     from taking such actions with respect to the Operative Agreements and/or
     relating to the Properties and shall grant such approvals and otherwise act
     or refrain from acting with respect to the Operative Agreements and/or
     relating to the Properties in each case as directed in writing by the Agent
     or, in connection with Section 10.5 hereof, the Lessee, notwithstanding any
     contrary instruction or absence of instruction by any Holder or Holders;
     and (ii) shall not take any action, grant any approvals or otherwise act
     under or with respect to the Operative Agreements and/or any matters
     relating to the Properties without first obtaining the prior written
     consent of the Agent (and without regard to any contrary instruction or
     absence of instruction by any Holder); provided, however, that
     notwithstanding the foregoing provisions of this subparagraph (j) the Owner
     Trustee, the Agent and the Holders each acknowledge, covenant and agree
     that, with respect to all matters under the Operative Agreements that
     require the consent and/or concurrence of all of the Lenders pursuant to
     the

                                       35
<PAGE>

     terms of Section 9.1 of the Credit Agreement (the "Unanimous Vote
     Matters"), neither the Owner Trustee nor the Agent shall act or refrain
     from acting with respect to any Unanimous Vote Matter until such party has
     received the approval of each Lender and each Holder with respect thereto.

     10.3  Credit Party Covenants, Consent and Acknowledgment.
           --------------------------------------------------

           (a)  Each Credit Party acknowledges and agrees that the Owner
     Trustee, pursuant to the terms and conditions of the Security Agreement and
     the Mortgage Instruments, shall create Liens respecting the various
     personal property, fixtures and real property described therein in favor of
     the Agent. Each Credit Party hereby irrevocably consents to the creation,
     perfection and maintenance of such Liens. Each Credit Party shall, to the
     extent reasonably requested by any of the other parties hereto, cooperate
     with the other parties in connection with their covenants herein or in the
     other Operative Agreements and shall from time to time duly execute and
     deliver any and all such future instruments, documents and financing
     statements (and continuation statements related thereto) as any other party
     hereto may reasonably request.

           (b)  Lessor hereby instructs each Credit Party, and each Credit Party
     hereby acknowledges and agrees, that until such time as the Loans are paid
     in full and the Liens evidenced by the Security Agreement and the Mortgage
     Instruments have been released (i) any and all Rent and any and all other
     amounts of any kind or type under any of the Operative Agreements due and
     owing or payable to the Lessor or the Owner Trustee shall instead be paid
     directly to the Agent or as the Agent may direct from time to time and (ii)
     each Credit Party shall cause all notices, certificates, financial
     statements, communications and other information which is delivered, or is
     required to be delivered, to the Lessor, to also to be delivered at the
     same time to the Agent and each Holder.

           (c)  No Credit Party shall consent to or permit any amendment,
     supplement or other modification of the terms or provisions of any
     Operative Agreement without, in each case, obtaining the prior written
     consent of the Agent and, to the extent required by the proviso at the end
     of Section 10.2(j) hereof, each of the Holders. The Lessee acknowledges
     that the actions of the Owner Trustee are subject to the consent of the
     Agent as set forth in Section 10.2(j).

           (d)  [Intentionally Omitted]

           (e)  Each Credit Party hereby covenants and agrees that, except for
     amounts payable as Basic Rent and as otherwise expressly specified in the
     Operative Agreements, any and all payment obligations owing from time to
     time under the Operative Agreements to the Agent, any Lender or any Holder
     shall (without further action) be deemed to be Supplemental Rent
     obligations payable by Lessee and guaranteed by the Guarantor. Without
     limitation, such obligations shall include commitment fees, unused fees,
     prepayment penalties, indemnities, trustee fees and transaction expenses
     incurred by the

                                       36
<PAGE>

     parties hereto in connection with the transactions contemplated by the
     Operative Agreements.

           (f)  Consistent with the terms and conditions of the Security
     Agreement, each of the Construction Agent and Lessee hereby covenants and
     agrees, at its own cost and expense, to assemble and make available to the
     Agent (on behalf of Lessor) any and all personal property components of any
     and all Properties.

     10.4  Sharing of Certain Payments.
           ---------------------------

     The parties hereto acknowledge and agree that all payments due and owing by
any Credit Party to the Lessor under the Lease or any of the other Operative
Agreements shall be made by such Credit Party directly to the Agent as more
particularly provided in Section 10.3 hereof. The Holders and the Agent, on
behalf of the Lenders, acknowledge the terms of Section 8 of the Credit
Agreement regarding the allocation of payments and other amounts made or
received from time to time under the Operative Agreements and agree, that all
such payments and amounts are to be allocated as provided in Section 8 of the
Credit Agreement. In connection therewith the Holders hereby (a) appoint the
Agent to act as collateral agent for the Holders in connection with the Lien
granted by the Security Documents to secure the Holder Amount and (b)
acknowledge and agree and direct that the rights and remedies of the
beneficiaries of the Lien of the Security Documents shall be exercised by the
Agent on behalf of the Lenders and the Holders as directed from time to time by
the Lenders without notice to or consent from the Holders.

     10.5  Grant of Easements, etc.
           ------------------------

     The Agent and the Holders hereby agree that, so long as no Event of Default
shall have occurred and be continuing, and until such time as the Agent gives
instructions to the contrary to the Owner Trustee, the Owner Trustee shall, from
time to time at the request of the Lessee, in connection with the transactions
contemplated by the Agency Agreement, the Lease or the other Operative
Agreements, (i) grant easements and other rights in the nature of easements with
respect to any Property, (ii) release existing easements or other rights in the
nature of easements which are for the benefit of any Property, (iii) execute and
deliver to any Person any instrument appropriate to confirm or effect such
grants or releases, and (iv) execute and deliver to any Person such other
documents or materials in connection with the acquisition, development or
operation of any Property, including, without limitation, reciprocal easement
agreements, operating agreements, development agreements, plats, replats or
subdivision documents; provided, that each of the agreements referred to in this
                       --------
Section 10.5 shall be of the type normally executed by the Lessee in the
ordinary course of the Lessee's business and shall be on commercially reasonable
terms so as not to diminish the value of any Property in any material respect.

     10.6  Appointment by Holders and Owner Trustee.
           ----------------------------------------

     Except as expressly provided in any Operative Agreement where the Owner
Trustee is required to act for or on behalf of the Holders, each Holder hereby
designates and appoints the Agent as the Agent of such Holder under this
Agreement and the other Operative Agreements, to

                                       37
<PAGE>

take such action on behalf of such Holder under the provisions of this Agreement
and the other Operative Agreements and exercise such powers and perform such
duties as are expressly delegated to the Agent by the terms of this Agreement
(including, without limitation, provisions of other agreements incorporated
herein by reference) and other Operative Agreements with respect to the Lenders
and as specifically delegated to the Owner Trustee on behalf of such Holder in
any Operative Agreement. For purposes hereof, and except as expressly provided
herein to the contrary, the provisions of Section 7 of the Credit Agreement,
together with such other terms and provisions of the Credit Agreement and the
other Operative Agreements as required for the full interpretation and operation
of Section 7 of the Credit Agreement are hereby incorporated by reference as if
restated herein for the mutual benefit of the Agent and each Holder as if such
Holder were a Lender thereunder. Except as may be expressly provided to the
contrary, for purposes hereof, outstanding Holder Fundings shall be taken into
account and treated as Loans for purposes of determining Majority Lenders;
provided, however, in any case, under the Operative Agreements where the consent
of the Holder is expressly required or the Holder is entitled to take any
action, such consent shall be given or action taken, whether directly by the
Holder or by the Agent (without the requirement that the consent of any Lender
be obtained or permission for such action be granted by any Lender); and,
provided, further, no amendment to any provision expressly requiring the consent
of the Holder or permitting the Holder to take action (whether directly or
through the Agent), shall be effective without the written consent of the
Holder. Further, the Agent shall be entitled to take such action on behalf of
the Owner Trustee as is delegated to the Agent under any Operative Agreement
(whether express or implied) as may be reasonably incidental thereto. Each
Lender hereby agrees to the provisions contained in this Section 10.6.

     SECTION 11  CREDIT AGREEMENT AND TRUST AGREEMENT.

     11.1  Construction Agent's and Lessee's Credit Agreement Rights.
           ---------------------------------------------------------

     Notwithstanding anything to the contrary contained in the Credit Agreement,
the Agent, the Lenders, the Holders, the Credit Parties and the Owner Trustee
hereby agree that, prior to the occurrence and continuation of any Default or
Event of Default, the Construction Agent and the Lessee (as designated below)
shall have the following rights:

           (a)  [Intentionally Omitted];

           (b)  the Construction Agent shall have the right to give the notice
     referred to in Section 2.3 of the Credit Agreement and to designate the
     account to which a borrowing under the Credit Agreement is to be credited
     pursuant to Section 2.3 of the Credit Agreement;

           (c)  the Lessee shall have the right to terminate or reduce the
     Commitments pursuant to Section 2.5(a) of the Credit Agreement;

           (d)  the Lessee shall have the right to exercise the conversion and
     continuation options pursuant to Section 2.7 of the Credit Agreement;

                                       38
<PAGE>

           (e)  the Lessee shall have the right to replace any Lender pursuant
     to Section 2.14(b) of the Credit Agreement;

           (f)  the Lessee shall have the right to approve any successor agent
     pursuant to Section 7.9 of the Credit Agreement;

           (g)  the Lessee shall have the right to consent to any assignment by
     a Lender to which the Lessor has the right to consent pursuant to Section
     9.8 of the Credit Agreement;

           (h)  without limiting the foregoing clauses (a) through (g), and in
     addition thereto, provided that no Event of Default then exists, the Lessee
     shall have the right to exercise any other right of the Owner Trustee under
     the Credit Agreement upon not less than five (5) Business Days' prior
     written notice from the Lessee to the Owner Trustee and the Agent;

           (i)  [Reserved]; and

           (j)  the Lessee shall have the right to give the notice respecting
     any prepayment of any Loan, as provided in Section 2.6(a) of the Credit
     Agreement.

     11.2  Construction Agent's and Lessee's Trust Agreement Rights.
           --------------------------------------------------------

     Notwithstanding anything to the contrary contained in the Trust Agreement,
the Credit Parties, the Owner Trustee and the Holders hereby agree that neither
the Construction Agent nor any Credit Party controls the Lessor and, prior to
the occurrence and continuation of any Lease Default or Lease Event of Default,
the Construction Agent and the Lessee (as designated below) shall have the
following rights:

           (a)  [Intentionally Omitted];

           (b)  the Lessee shall have the right to exercise the conversion and
     continuation options pursuant to Section 3.8 of the Trust Agreement;

           (c)  no removal of the Owner Trustee and appointment of a successor
     Owner Trustee pursuant to Section 9.1 of the Trust Agreement shall be made
     without the prior written consent (not to be unreasonably withheld or
     delayed) of the Lessee;

           (d)  [Reserved]; and

           (e)  the Lessee shall have the right to give the notice respecting
     any prepayment of any amount under any Certificate, as provided in Section
     3.4(a) of the Trust Agreement.

                                       39
<PAGE>

     SECTION 12  TRANSFER OF INTEREST.

     12.1  Restrictions on Transfer.
           ------------------------

     Each Lender may assign or transfer all or a portion of its interest
hereunder and under the other Operative Agreements in accordance with Section
9.8 of the Credit Agreement; provided, (i) each assignee or transferee with
                             --------
respect to Tranche A Loans and Tranche A Commitments must obtain the same
ratable interest in Tranche A Loans and Tranche A Commitments as defined in the
COSI Participation Agreement, and (ii) each assignee or transferee with respect
to Tranche B Loans and Tranche B Commitments must obtain the same ratable
interest in Tranche B Loans and Tranche B Commitments as defined in the COSI
Participation Agreement.  The Holders may, directly or indirectly, assign,
convey or otherwise transfer any of their right, title or interest in or to the
CORI Trust Estate (together with the same ratable interest in the COSI Trust
Estate) or the Trust Agreement with the prior written consent of the Agent and,
so long as no Lease Default or Lease Event of Default shall have occurred and be
continuing and the Lessee has rights in one or more of the Properties under the
Lease, the Lessee (which consent shall not be unreasonably withheld or delayed).
The Owner Trustee may, subject to the Lien of the applicable Security Documents
but only with the prior written consent of the Agent, the Holders (which consent
may be withheld by the Agent and/or the Holders in their sole discretion) and
(provided no Default or Event of Default has occurred and is continuing) with
the consent of the Lessee, directly or indirectly, assign, convey, appoint an
agent with respect to enforcement of, or otherwise transfer any of its right,
title or interest in or to any Property, the Lease, the Trust Agreement, this
Agreement (including, without limitation, any right to indemnification
thereunder), or any other document relating to a Property or any interest in a
Property as provided in the Trust Agreement and the Lease.  The provisions of
the immediately preceding sentence shall not apply to the obligations of the
Owner Trustee to transfer Property to the Lessee or a third party purchaser
pursuant to Article XXII of the Lease upon payment for such Property in
accordance with the terms and conditions of the Lease.

     12.2  Effect of Transfer.
           ------------------

     From and after any transfer effected in accordance with this Section 12,
the transferor shall be released, to the extent of such transfer, from its
liability hereunder and under the other documents to which it is a party in
respect of obligations to be performed on or after the date of such transfer;
provided, however, that any transferor Holder shall remain liable under Article
XI of the Trust Agreement to the extent that the transferee Holder shall not
have assumed the obligations of the transferor Holder thereunder.  Upon any
transfer by the Owner Trustee, a Holder or a Lender as above provided, any such
transferee shall assume the obligations of the Owner Trustee, the Lessor, the
Holder or the Lender, as the case may be, and shall be deemed an "Owner
Trustee", "Lessor", "Holder", or "Lender", as the case may be, for all purposes
of such documents and each reference herein to the transferor shall thereafter
be deemed a reference to such transferee for all purposes, except as provided in
the preceding sentence.  Notwithstanding any transfer of all or a portion of the
transferor's interest as provided in this Section 12, the transferor shall be
entitled to all benefits accrued and all rights vested prior to such transfer
including, without limitation, rights to indemnification under any such
document.

                                       40
<PAGE>

     SECTION 13  INDEMNIFICATION.

     13.1  General Indemnity.
           -----------------

     Subject to and limited by in all respects the provisions of Sections 13.5
and 13.6 and whether or not any of the transactions contemplated hereby shall be
consummated, the Indemnity Provider hereby assumes liability for and agrees to
defend, indemnify and hold harmless each Indemnified Person on an After Tax
Basis from and against any Claims, which may be imposed on, incurred by or
asserted against an Indemnified Person (by any third party, including Claims
arising from the negligence of an Indemnified Person (but not to the extent such
Claims arise from the gross negligence, willful misconduct or willful breach of
such Indemnified Person or are otherwise solely attributable to acts or events
occurring after the expiration of the Lease or after the transfer of all of the
Properties to the Lessee or a third party)) in any way relating to or arising or
alleged to arise out of the execution, delivery, performance or enforcement of
this Agreement, the Lease or any other Operative Agreement or on or with respect
to any Property or any component thereof, including, without limitation, Claims
in any way relating to or arising or alleged to arise out of (a) the financing,
refinancing, purchase, acceptance, rejection, ownership, design, construction,
refurbishment, development, delivery, acceptance, nondelivery, leasing,
subleasing, possession, use, operation, maintenance repair, modification,
transportation, condition, sale, return, repossession (whether by summary
proceedings or otherwise), or any other disposition of any Property or any part
thereof, including the acquisition, holding or disposition of any interest in
the Property, lease or agreement comprising a portion of any thereof; (b) any
latent or other defects in any Property or any portion thereof whether or not
discoverable by an Indemnified Person or the Indemnity Provider; (c) a violation
of Environmental Laws, Environmental Claims or other loss of or damage to any
property or the environment relating to the Property, the Lease, the Agency
Agreement or the Indemnity Provider; (d) the Operative Agreements, or any
transaction contemplated thereby; (e) any breach by the Indemnity Provider of
any of its representations or warranties under the Operative Agreements to which
the Indemnity Provider is a party or failure by the Indemnity Provider to
perform or observe any covenant or agreement to be performed by it under any of
the Operative Agreement; (f) the transactions contemplated hereby or by any
other Operative Agreement, in respect of the application of Parts 4 and 5 of
Subtitle B of Title I of ERISA; and (g) personal injury, death or property
damage, including Claims based on strict or absolute liability in tort.

     If a written Claim is made against any Indemnified Person or if any
proceeding shall be commenced against such Indemnified Person (including a
written notice of such proceeding), for any Claim, such Indemnified Person shall
promptly notify the Indemnity Provider in writing and shall not take action with
respect to such Claim without the consent of the Indemnity Provider for thirty
(30) days after the receipt of such notice by the Indemnity Provider; provided,
however, that, in the case of any such Claim, if action shall be required by law
or regulation to be taken prior to the end of such 30-day period, such
Indemnified Person shall endeavor to, in such notice to the Indemnity Provider,
inform the Indemnity Provider of such shorter period, and no action shall be
taken with respect to such Claim without the consent of the Indemnity Provider
before 7 days before the end of such shorter period; provided, further, that the
failure of such Indemnified Person

                                       41
<PAGE>

to give the notices referred to in this sentence shall not diminish the
Indemnity Provider's obligation hereunder except to the extent such failure
precludes the Indemnity Provider from contesting such Claim.

     If, within thirty (30) days of receipt of such notice from the Indemnified
Person (or such shorter period as the Indemnified Person has notified the
Indemnity Provider is required by law or regulation for the Indemnified Person
to respond to such Claim), the Indemnity Provider shall request in writing that
such Indemnified Person respond to such Claim, the Indemnified Person shall, at
the expense of the Indemnity Provider, in good faith conduct and control such
action (including, without limitation, by pursuit of appeals) (provided,
however, that (A) if such Claim, in the Indemnity Person's reasonable
discretion, can be pursued by the Indemnity Provider on behalf of or in the name
of such Indemnified Person, the Indemnified Person, at the Indemnity Provider's
request, shall allow the Indemnity Provider to conduct and control the response
to such Claim and (B) in the case of any Claim, the Indemnified Person may
request the Indemnity Provider to conduct and control the response to such Claim
(with counsel to be selected by the Indemnity Provider and consented to by such
Indemnified Person, such consent not to be unreasonably withheld; provided,
however, that any Indemnified Person may retain separate counsel at the expense
of the Indemnity Provider in the event of a conflict)) by, in the sole
discretion of the Person conducting and controlling the response to such Claim
(1) resisting payment thereof, (2) not paying the same except under protest, if
protest is necessary and proper, (3) if the payment be made, using reasonable
efforts to obtain a refund thereof in appropriate administrative and judicial
proceedings, or (4) taking such other action as is reasonably requested by the
Indemnity Provider from time to time.

     The party controlling the response to any Claim shall consult in good faith
with the non-controlling party and shall keep the non-controlling party
reasonably informed as to the conduct of the response to such Claim; provided,
that all decisions ultimately shall be made in the discretion of the controlling
party.  The parties agree that an Indemnified Person may at any time decline to
take further action with respect to the response to such Claim and may settle
such Claim if such Indemnified Person shall waive its rights to any indemnity
from the Indemnity Provider that otherwise would be payable in respect of such
Claim (and any future Claim, the pursuit of which is precluded by reason of such
resolution of such Claim) and shall pay to the Indemnity Provider any amount
previously paid or advanced by the Indemnity Provider pursuant to this Section
13.1 by way of indemnification or advance for the payment of an amount regarding
such Claim.

     Notwithstanding the foregoing provisions of this Section 13.1, an
Indemnified Person shall not be required to take any action and no Indemnity
Provider shall be permitted to respond to any Claim in its own name or that of
the Indemnified Person unless (A) the Indemnity Provider shall have agreed to
pay and shall pay to such Indemnified Person on demand and on an After Tax Basis
all reasonable costs, losses and expenses that such Indemnified Person actually
incurs in connection with such Claim, including, without limitation, all
reasonable legal, accounting and investigatory fees and disbursements and, if
the Indemnified Person has informed the Indemnity Provider (in its initial
notice of the Claim) that it intends to contest such Claim (whether or not the
control of the contest is then assumed by the Indemnity Provider), the Indemnity
Provider shall have agreed that the Claim is an indemnifiable Claim hereunder,
(B) in the case of a Claim that must be pursued in

                                       42
<PAGE>

the name of an Indemnified Person (or an Affiliate thereof), the amount of the
potential indemnity (taking into account all similar or logically related Claims
that have been or could be raised for which the Indemnity Provider may be liable
to pay an indemnity under this Section 13.1) exceeds $25,000, (C) the
Indemnified Person shall have reasonably determined that the action to be taken
will not result in any material danger of sale, forfeiture or loss of the
Property, or any part thereof or interest therein, will not interfere with the
payment of Rent, and will not result in risk of criminal liability, (D) if such
Claim shall involve the payment of any amount prior to the resolution of such
Claim, the Indemnity Provider shall provide to the Indemnified Person an
interest-free advance in an amount equal to the amount that the Indemnified
Person is required to pay (with no additional net after-tax cost to such
Indemnified Person), (E) in the case of a Claim that must be pursued in the name
of an Indemnified Person (or an Affiliate thereof), the Indemnity Provider shall
have provided to such Indemnified Person an opinion of independent counsel
selected by the Indemnified Person and reasonably satisfactory to the Indemnity
Provider stating that a reasonable basis exists to contest such Claim (or, in
the case of an appeal of an adverse determination, an opinion of such counsel to
the effect that the position asserted in such appeal will more likely than not
prevail) and (F) no Event of Default shall have occurred and be continuing. In
no event shall an Indemnified Person be required to appeal an adverse judicial
determination to the United States Supreme Court. In addition, an Indemnified
Person shall not be required to contest any Claim in its name (or that of an
Affiliate) if the subject matter thereof shall be of a continuing nature and
shall have previously been decided adversely by a court of competent
jurisdiction pursuant to the contest provisions of this Section 13.1, unless
there shall have been a change in law (or interpretation thereof) and the
Indemnified Person shall have received, at the Indemnity Provider's expense, an
opinion of independent counsel selected by the Indemnified Person and reasonably
acceptable to the Indemnity Provider stating that as a result of such change in
law (or interpretation thereof), it is more likely than not that the Indemnified
Person will prevail in such contest.

     13.2  General Tax Indemnity.
           ---------------------

           (a)  Subject to and limited by in all respects the provisions of
     Sections 13.5 and 13.6, the Indemnity Provider shall pay and assume
     liability for, and does hereby agree to indemnify, protect and defend each
     Property and all Indemnified Persons, and hold them harmless against, all
     Impositions on an After Tax Basis, and all payments pursuant to the
     Operative Agreements shall be made free and clear of and without deduction
     for any and all present and future Impositions.

           (b)  Notwithstanding anything to the contrary in Section 13.2(a)
     hereof, the following shall be excluded from the indemnity required by
     Section 13.2(a):

                (i)   Taxes (other than Taxes that are, or are in the nature of,
           sales, use, rental, value added, transfer or property taxes) that are
           imposed on a Indemnified Person (other than Lessor) by the United
           States federal government that are based on or measured by the net
           income (including taxes based on capital gains and minimum taxes) of
           such Person; provided, that this clause (i) shall not be interpreted
           to prevent a payment from being made on an After Tax Basis if such
           payment is otherwise required to be so made;

                                       43
<PAGE>

                (ii)   Taxes (other than Taxes that are, or are in the nature
           of, sales, use, rental, value added, transfer or property taxes) that
           are imposed on any Indemnified Person (other than Lessor) by any
           state or local jurisdiction or taxing authority within any state or
           local jurisdiction and that are based upon or measured by the net
           income or net receipts, except that this clause (ii) shall not apply
           to (and thus shall not exclude) any such Taxes imposed on an
           Indemnified Person by a state (or any local taxing authority thereof
           or therein) where any Property is located, possessed or used under
           the Lease; provided, that this clause (ii) shall not be interpreted
           to prevent a payment from being made on an After Tax Basis if such
           payment is otherwise required to be so made;

                (iii)  any Tax to the extent it relates to any act, event or
           omission that occurs after the termination of the Lease and
           redelivery or sale of the property in accordance with the terms of
           the Lease (but not any Tax that relates to such termination,
           redelivery or sale and/or to any period prior to such termination,
           redelivery or sale); and

                (iv)   any Taxes which are imposed on an Indemnified Person as a
           result of the gross negligence or willful misconduct of such
           Indemnified Person itself (as opposed to gross negligence or willful
           misconduct imputed to such Indemnified Person), but not Taxes imposed
           as a result of ordinary negligence of such Indemnified Person;

           (c)  (i)    Subject to the terms of Section 13.2(f), the Indemnity
     Provider shall pay or cause to be paid all Impositions directly to the
     taxing authorities where feasible and otherwise to the Indemnified Person,
     as appropriate, and the Indemnity Provider shall at its own expense, upon
     such Indemnified Person's reasonable request, furnish to such Indemnified
     Person copies of official receipts or other satisfactory proof evidencing
     such payment.

                    (ii)   In the case of Impositions for which no contest is
           conducted pursuant to Section 13.2(f) and which the Indemnity
           Provider pays directly to the taxing authorities, the Indemnity
           Provider shall pay such Impositions prior to the latest time
           permitted by the relevant taxing authority for timely payment. In the
           case of Impositions for which the Indemnity Provider reimburses an
           Indemnified Person, the Indemnity Provider shall do so within thirty
           (30) days after receipt by the Indemnity Provider of demand by such
           Indemnified Person describing in reasonable detail the nature of the
           Imposition and the basis for the demand (including the computation of
           the amount payable). In the case of Impositions for which a contest
           is conducted pursuant to Section 13.2(f), the Indemnity Provider
           shall pay such Impositions or reimburse such Indemnified Person for
           such Impositions, to the extent not previously paid or reimbursed
           pursuant to subsection (a), prior to the latest time permitted by the
           relevant taxing authority for timely payment after conclusion of all
           contests under Section 13.2(f).

                                       44
<PAGE>

                (iii)   At the Indemnity Provider's request, the amount of any
           indemnification payment by the Indemnity Provider pursuant to
           subsection (a) shall be verified and certified by an independent
           public accounting firm mutually acceptable to the Indemnity Provider
           and the Indemnified Person. The fees and expenses of such independent
           public accounting firm shall be paid by the Indemnity Provider unless
           such verification shall result in an adjustment in the Indemnity
           Provider's favor of 15% or more of the payment as computed by the
           Indemnified Person, in which case such fee shall be paid by the
           Indemnified Person.

           (d)  The Indemnity Provider shall be responsible for preparing and
     filing any real and personal property or ad valorem tax returns in respect
     of each Property. In case any other report or tax return shall be required
     to be made with respect to any obligations of the Indemnity Provider under
     or arising out of subsection (a) and of which the Indemnity Provider has
     knowledge or should have knowledge, the Indemnity Provider, at its sole
     cost and expense, shall notify the relevant Indemnified Person of such
     requirement and (except if such Indemnified Person notifies the Indemnity
     Provider that such Indemnified Person intends to file such report or
     return) (A) to the extent required or permitted by and consistent with
     Legal Requirements, make and file in Indemnity Provider's name such return,
     statement or report; and (B) in the case of any other such return,
     statement or report required to be made in the name of such Indemnified
     Person, advise such Indemnified Person of such fact and prepare such
     return, statement or report for filing by such Indemnified Person or, where
     such return, statement or report shall be required to reflect items in
     addition to any obligations of the Indemnity Provider under or arising out
     of subsection (a), provide such Indemnified Person at the Indemnity
     Provider's expense with information sufficient to permit such return,
     statement or report to be properly made with respect to any obligations of
     the Indemnity Provider under or arising out of subsection (a). Such
     Indemnified Person shall, upon the Indemnity Provider's request and at the
     Indemnity Provider's expense, provide any data maintained by such
     Indemnified Person (and not otherwise available to or within the control of
     the Indemnity Provider) with respect to each Property which the Indemnity
     Provider may reasonably require to prepare any required tax returns or
     reports.

           (e)  As between the Indemnity Provider on one hand, and the Lessor or
     the Agent, any Lender or any Holder on the other hand, the Indemnity
     Provider shall be responsible for, and the Indemnity Provider shall
     indemnify and hold harmless the Lessor, the Agent, the Lenders and each
     Holder (without duplication of any indemnification required by subsection
     (a)) on an After Tax Basis against, any obligation for United States or
     foreign withholding taxes imposed in respect of the interest payable on the
     Notes or with respect to Rent payments under the Lease (and, if the Lessor,
     the Agent, any Lender or any Holder receives a demand for such payment from
     any taxing authority, the Indemnity Provider shall discharge such demand on
     behalf of the Lessor, the Agent, such Lender or such Holder); provided,
     however, that the right of any Lender to make a claim for indemnification
     under this Section 13.2(e) is subject to the compliance by such Lender with
     the requirements of Section 2.13 of the Credit Agreement.

                                       45
<PAGE>

           (f)  (i)   If a written Claim is made against any Indemnified Person
     or if any proceeding shall be commenced against such Indemnified Person
     (including a written notice of such proceeding), for any Impositions, such
     Indemnified Person shall promptly notify the Indemnity Provider in writing
     and shall not take action with respect to such Claim or proceeding without
     the consent of the Indemnity Provider for thirty (30) days after the
     receipt of such notice by the Indemnity Provider; provided, however, that,
     in the case of any such Claim or proceeding, if action shall be required by
     law or regulation to be taken prior to the end of such 30-day period, such
     Indemnified Person shall, in such notice to the Indemnity Provider, inform
     the Indemnity Provider of such shorter period, and no action shall be taken
     with respect to such Claim or proceeding without the consent of the
     Indemnity Provider before 7 days before the end of such shorter period;
     provided, further, that the failure of such Indemnified Person to give the
     notices referred to this sentence shall not diminish the Indemnity
     Provider's obligation hereunder except to the extent such failure
     materially precludes the Indemnity Provider from contesting such Claim.

                (ii)  If, within thirty (30) days of receipt of such notice from
           the Indemnified Person (or such shorter period as the Indemnified
           Person has notified the Indemnity Provider is required by law or
           regulation for the Indemnified Person to commence such contest), the
           Indemnity Provider shall request in writing that such Indemnified
           Person contest such Imposition, the Indemnified Person shall, at the
           expense of the Indemnity Provider, in good faith conduct and control
           such contest (including, without limitation, by pursuit of appeals)
           relating to the validity, applicability or amount of such Impositions
           (provided, however, that (A) if such contest involves a tax other
           than a tax on net income and can be pursued independently from any
           other proceeding involving a tax liability of such Indemnified
           Person, the Indemnified Person, at the Indemnity Provider's request,
           shall allow the Indemnity Provider (and the Indemnity Provider shall
           be obligated) to conduct and control such contest and (B) in the case
           of any contest, the Indemnified Person may request the Indemnity
           Provider to conduct and control such contest (with counsel to be
           selected by the Indemnity Provider and consented to by such
           Indemnified Person, such consent not to be unreasonably withheld;
           provided, however, that any Indemnified Person may retain separate
           counsel at the expense of the Indemnity Provider in the event of a
           conflict)) by, in the sole discretion of the Person conducting and
           controlling such contest, (1) resisting payment thereof, (2) not
           paying the same except under protest, if protest is necessary and
           proper, (3) if the payment be made, using reasonable efforts to
           obtain a refund thereof in appropriate administrative and judicial
           proceedings, or (4) taking such other action as is reasonably
           requested by the Indemnity Provider from time to time.

                (iii) The party controlling any contest shall consult in good
           faith with the non-controlling party and shall keep the non-
           controlling party reasonably informed as to the conduct of such
           contest; provided, that all decisions ultimately shall be made in the
           sole discretion of the controlling party. The parties agree that an
           Indemnified Person may at any time decline to take further action
           with respect to

                                       46
<PAGE>

          the contest of any Imposition and may settle such contest if such
          Indemnified Person shall waive its rights to any indemnity from the
          Indemnity Provider that otherwise would be payable in respect of such
          Claim (and any future Claim by any taxing authority, the contest of
          which is precluded by reason of such resolution of such Claim) and
          shall pay to the Indemnity Provider any amount previously paid or
          advanced by the Indemnity Provider pursuant to this Section 13.2 by
          way of indemnification or advance for the payment of an Imposition
          other than expenses of such contest.

                (iv)  Notwithstanding the foregoing provisions of this Section
           13.2, an Indemnified Person shall not be required to take any action
           and no Indemnity Provider shall be permitted to contest any
           Impositions in its own name or that of the Indemnified Person unless
           (A) the Indemnity Provider shall have agreed to pay and shall pay to
           such Indemnified Person on demand and on an After Tax Basis all
           reasonable costs, losses and expenses that such Indemnified Person
           actually incurs in connection with contesting such Impositions,
           including, without limitation, all reasonable legal, accounting and
           investigatory fees and disbursements, and, if the Indemnified Person
           has informed the Indemnity Provider (in its initial notice of the
           Imposition) that it intends to contest such Imposition (whether or
           not the control of the contest is then assumed by the Indemnity
           Provider), the Indemnity Provider shall have agreed that the
           Imposition is an indemnifiable Imposition hereunder, (B) in the case
           of a Claim that must be pursued in the name of an Indemnified Person
           (or an Affiliate thereof), the amount of the potential indemnity
           (taking into account all similar or logically related Claims that
           have been or could be raised in any audit involving such Indemnified
           Person for which the Indemnity Provider may be liable to pay an
           indemnity under this Section 13.2) exceeds $25,000, (C) the
           Indemnified Person shall have reasonably determined that the action
           to be taken will not result in any material danger of sale,
           forfeiture or loss of any Property, or any part thereof or interest
           therein, will not interfere with the payment of Rent, and will not
           result in risk of criminal liability, (D) if such contest shall
           involve the payment of the Imposition prior to the contest, the
           Indemnity Provider shall provide to the Indemnified Person an
           interest-free advance in an amount equal to the Imposition that the
           Indemnified Person is required to pay (with no additional net after-
           tax cost to such Indemnified Person), (E) in the case of a Claim that
           must be pursued in the name of an Indemnified Person (or an Affiliate
           thereof), the Indemnity Provider shall have provided to such
           Indemnified Person an opinion of independent tax counsel selected by
           the Indemnified Person and reasonably satisfactory to the Indemnity
           Provider stating that a reasonable basis exists to contest such Claim
           (or, in the case of an appeal or an adverse determination, an opinion
           of such counsel to the effect that the position asserted in such
           appeal will more likely than not prevail) and (F) no Default or Event
           of Default shall have occurred and be continuing. In no event shall
           an Indemnified Person be required to appeal an adverse judicial
           determination to the United States Supreme Court. In addition, an
           Indemnified Person shall not be required to contest any Claim in its
           name (or that of an Affiliate) if the subject

                                       47
<PAGE>

           matter thereof shall be of a continuing nature and shall have
           previously been decided adversely by a court of competent
           jurisdiction pursuant to the contest provisions of this Section 13.2,
           unless there shall have been a change in law (or interpretation
           thereof) and the Indemnified Person shall have received, at the
           Indemnity Provider's expense, an opinion of independent tax counsel
           selected by the Indemnified Person and reasonably acceptable to the
           Indemnity Provider stating that as a result of such change in law (or
           interpretation thereof), it is more likely than not that the
           Indemnified Person will prevail in such contest.

     13.3  EXPRESS INDEMNIFICATION FOR ORDINARY NEGLIGENCE, STRICT LIABILITY,
           ------------------------------------------------------------------
           ETC.
           ---

     SUBJECT TO AND LIMITED BY IN ALL RESPECTS THE PROVISIONS OF SECTION 13.5
AND 13.6 AND WITHOUT LIMITING THE GENERALITY OF THE INDEMNIFICATION PROVISIONS
OF ANY AND ALL OF THE OPERATIVE AGREEMENTS, EACH PERSON PROVIDING
INDEMNIFICATION OF ANOTHER PERSON UNDER ANY OPERATIVE AGREEMENT HEREBY FURTHER
EXPRESSLY RELEASES EACH BENEFICIARY OF ANY SUCH INDEMNIFICATION FROM ALL CLAIMS
FOR LOSS OR DAMAGE, DESCRIBED IN ANY OPERATIVE AGREEMENT, CAUSED BY ANY ACT OR
OMISSION ON THE PART OF ANY SUCH BENEFICIARY ATTRIBUTABLE TO THE ORDINARY
NEGLIGENCE (WHETHER SOLE OR CONTRIBUTORY) OR STRICT LIABILITY OF ANY SUCH
BENEFICIARY, AND INDEMNIFIES, EXONERATES AND HOLDS EACH SUCH BENEFICIARY FREE
AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS,
CLAIMS, LOSSES, COSTS, LIABILITIES, DAMAGES AND EXPENSES (INCLUDING WITHOUT
LIMITATION REASONABLE ATTORNEY'S FEES AND EXPENSES), DESCRIBED ABOVE, INCURRED
BY ANY SUCH BENEFICIARY (IRRESPECTIVE OF WHETHER ANY SUCH BENEFICIARY IS A PARTY
TO THE ACTION FOR WHICH INDEMNIFICATION UNDER THIS AGREEMENT OR ANY OTHER
OPERATIVE AGREEMENT IS SOUGHT) ATTRIBUTABLE TO THE ORDINARY NEGLIGENCE (WHETHER
SOLE OR CONTRIBUTORY) OR STRICT LIABILITY OF ANY SUCH BENEFICIARY.

     13.4  Additional Provisions Regarding Environmental Indemnification.
           -------------------------------------------------------------

     Each and every Indemnified Person shall at all times have the rights and
benefits, and the Indemnity Provider shall have the obligations, in each case
provided pursuant to the Operative Agreements with respect to environmental
matters, violations of any Environmental Law, any Environmental Claim or other
loss of or damage to any property or the environment relating to any Property,
the Lease, the Agency Agreement or the Indemnity Provider (including without
limitation the rights and benefits provided pursuant to Section 13.1(c).

                                       48
<PAGE>

     13.5  Additional Provisions Regarding Indemnification.
           -----------------------------------------------

     Notwithstanding the provisions of Sections 13.1, 13.2, 13.3 and 13.4 (other
than with respect to matters concerning indemnification for pre-existing
environmental conditions and for environmental conditions arising out of the
Construction Agent's use or possession of the Property), (a) the Owner Trustee
shall be the only beneficiary of the provisions set forth in Sections 13.1,
13.2, 13.3 and 13.4 (again, subject to the immediately preceding parenthetical
phrase) with respect to each Property solely for the period prior to the
applicable Completion Date for such Property, and (b) such limited rights of
indemnification referenced in Section 13.5(a) (to the extent relating to third-
party claims) shall be limited to third-party claims caused by or resulting from
the Indemnity Provider's acts or omissions and/or all other Persons acting by,
through or under the Indemnity Provider.  After the applicable Completion Date
for such Property, each Indemnified Person shall be a beneficiary of the
provisions set forth in Sections 13.1, 13.2, 13.3 and 13.4.

     13.6  Indemnifications Provided by the Owner Trustee in Favor of the Other
           --------------------------------------------------------------------
           Indemnified Persons.
           -------------------

     To the extent the Indemnity Provider is not obligated to indemnify each
Indemnified Person with respect to the various matters described in this Section
13.6, the Owner Trustee shall provide such indemnities (but only to the extent
amounts sufficient to pay such indemnity are funded by the Lenders and the
Holders) in favor of each Indemnified Person in accordance with this Section
13.6 and shall pay all such amounts owed with respect to this Section 13.6 with
amounts advanced by the Lenders and the Holders (a) to the extent, but only to
the extent, amounts are available therefor with respect to the Available
Commitments and the Available Holder Commitments (subject to the rights of the
Lenders and the Holders to increase their respective commitment amounts in
accordance with the provisions of Section 5.8) and (b) unless each Lender and
each Holder has declined in writing to fund such amount. Notwithstanding any
other provision in any other Operative Agreement to the contrary, all amounts so
advanced shall be deemed added (ratably, based on the ratio of the Property Cost
for each Property individually to the Aggregate Property Cost of all Properties
at such time) to the Property Cost of all Properties then subject to the terms
of the Operative Agreements.

     Whether or not any of the transactions contemplated hereby shall be
consummated, the Owner Trustee hereby assumes liability for and agrees to
defend, indemnify and hold harmless each Indemnified Person on an After Tax
Basis from and against any Claims, which may be imposed on, incurred by or
asserted against an Indemnified Person by any third party, including without
limitation Claims arising from the negligence of an Indemnified Person (but not
to the extent such Claims arise from the gross negligence or willful misconduct
of such Indemnified Person itself, as determined by a court of competent
jurisdiction, as opposed to gross negligence or willful misconduct imputed to
such Indemnified Person or breach of such Indemnified Person's obligations under
this Agreement, the Lease or any other Operative Agreement) in any way relating
to or arising or alleged to arise out of the execution, delivery, performance or
enforcement of this Agreement, the Lease or any other Operative Agreement or on
or with respect to any Property or any component thereof, including without
limitation Claims in any

                                       49
<PAGE>

way relating to or arising or alleged to arise out of the matters set forth in
clauses (a) through (g) of the first paragraph of Section 13.1.

     The Owner Trustee shall pay and assume liability for, and does hereby agree
to indemnify, protect and defend each Property and all Indemnified Persons, and
hold them harmless against, all Impositions on an After Tax Basis, and all
payments pursuant to the Operative Agreements shall be made free and clear of
and without deduction for any and all present and future Impositions.
Notwithstanding anything to the contrary in this paragraph, the Excluded Taxes
shall be excluded from the indemnity provisions afforded by this paragraph.

     THE INDEMNITY OBLIGATIONS UNDERTAKEN BY THE OWNER TRUSTEE PURSUANT TO THIS
SECTION 13.6 ARE IN ALL RESPECTS SUBJECT TO THE LIMITATIONS ON LIABILITY
REFERENCED IN SECTION 14.10.

     SECTION 14  MISCELLANEOUS.

     14.1  Survival of Agreements.
           ----------------------

     The representations, warranties, covenants, indemnities and agreements of
the parties provided for in the Operative Agreements, and the parties'
obligations under any and all thereof, shall survive the execution and delivery
of this Agreement, the transfer of any Property to the Owner Trustee, the
acquisition of any Equipment, the construction of any Improvements, any
disposition of any interest of the Owner Trustee in any Property or any interest
of the Holders in the Owner Trust, the payment of the Notes and any disposition
thereof and shall be and continue in effect notwithstanding any investigation
made by any party and the fact that any party may waive compliance with any of
the other terms, provisions or conditions of any of the Operative Agreements.
Except as otherwise expressly set forth herein or in other Operative Agreements,
the indemnities of the parties provided for in the Operative Agreements shall
survive the expiration or termination of any thereof.

     14.2  No Broker, etc.
           --------------

     Except as expressly provided in that certain engagement letter agreement
dated as of April 13, 1999 among Bank of America, N.A., a national banking
association, which is the successor to NationsBank, N.A., BancAmerica Securities
LLC, which is the successor to NationsBanc Montgomery Securities, LLC, Capital
One Bank and Capital One Financial Corporation, each of the parties hereto
represents to the others that it has not retained or employed any broker, finder
or financial adviser to act on its behalf in connection with this Agreement, nor
has it authorized any broker, finder or financial adviser retained or employed
by any other Person so to act.  Any party who is in breach of this
representation shall indemnify and hold the other parties harmless from and
against any liability arising out of such breach of this representation.

                                       50
<PAGE>

     14.3  Notices.
           -------

     Unless otherwise specifically provided herein, all notices, consents,
directions, approvals, instructions, requests and other communications required
or permitted by the terms hereof to be given to any Person shall be given in
writing by United States mail, by nationally recognized courier service or by
hand and any such notice shall become effective upon receipt and shall be
directed to the address of such Person as indicated:

     If to the Lessee or the Construction Agent, to it at the following address:

               Capital One Realty, Inc.
               2980 Fairview Park Drive
               Suite 1300
               Falls Church, Virginia 22042
               Attention:  Director of Capital Markets
               Telephone:  (703) 205-1000
               Telecopy:   (703) 205-1748

     with a copy to:

               Capital One Bank
               c/o Capital One Services, Inc.
               2980 Fairview Park Drive, Suite 1300
               Falls Church, Virginia 22042
               Attention:  Director of Capital Markets
               Telephone:  (703) 205-1000
               Telecopy:   (703) 205-1748

     If to the Guarantor, to it at the following address:

               Capital One Bank
               c/o Capital One Services, Inc.
               2980 Fairview Park Drive, Suite 1300
               Falls Church, Virginia 22042
               Attention:  Director of Capital Markets
               Telephone:  (703) 205-1000
               Telecopy:   (703) 205-1748

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

                                       51
<PAGE>

     If to the Owner Trustee, to it at the following address:

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

     If to the Holders, to each such Holder at the address set forth for such
     Holder on the signature page of the Trust Agreement.

     If to the Agent, to it at the following address:

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

     If to any Lender, to it at the address set forth for such Lender in
     Schedule 1.1 of the Credit Agreement.

     From time to time any party may designate a new address for purposes of
     notice hereunder by notice to each of the other parties hereto.

     14.4  Counterparts.
           ------------

     This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same
instrument.

     14.5  Amendments and Termination.
           --------------------------

     Neither this Agreement nor any of the terms hereof may be terminated,
amended, supplemented, waived or modified except by an instrument in writing
signed by the party against which the enforcement of the termination, amendment,
supplement, waiver or modification shall be sought.  This Agreement may be
terminated by an agreement signed in writing by the Owner Trustee, the Holders,
the Lenders, each Credit Party and the Agent.

                                       52
<PAGE>

     14.6  Headings, etc.
           --------------

     The Table of Contents and headings of the various Articles and Sections of
this Agreement are for convenience of reference only and shall not modify,
define, expand or limit any of the terms or provisions hereof.

     14.7  Parties in Interest.
           -------------------

     Except as expressly provided herein, none of the provisions of this
Agreement are intended for the benefit of any Person except the parties hereto.

     14.8  GOVERNING LAW; WAIVERS OF JURY TRIAL.
           ------------------------------------

           (a)  THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY THE LAW OF
     THE COMMONWEALTH OF VIRGINIA AS TO ALL MATTERS OF CONSTRUCTION, VALIDITY
     AND PERFORMANCE.

           (b)  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVE
     TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
     AND FOR ANY COUNTERCLAIM THEREIN.

     14.9  Severability.
           ------------

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

     14.10 Liability Limited.
           -----------------

           (a)  The Agent, the Credit Parties, the Lenders and the Holders each
     acknowledge and agree that the Owner Trustee is (except as otherwise
     expressly provided herein or therein) entering into this Agreement and the
     other Operative Agreements to which it is a party (other than the Trust
     Agreement and to the extent otherwise provided in Section 7.2 of this
     Agreement), solely in its capacity as trustee under the Trust Agreement and
     not in its individual capacity and that Trust Company shall not be liable
     or accountable under any circumstances whatsoever in its individual
     capacity for or on account of any statements, representations, warranties,
     covenants or obligations stated to be those of the Owner Trustee, except
     for its own gross negligence or willful misconduct and as otherwise
     expressly provided herein or in the other Operative Agreements.

           (b)  Anything to the contrary contained in this Agreement, the Credit
     Agreement, the Notes or in any other Operative Agreement notwithstanding,
     neither the

                                       53
<PAGE>

     Lessor nor any Holder nor any officer, director, shareholder, or partner
     thereof, nor any of the successors or assigns of the foregoing (all such
     Persons being hereinafter referred to collectively as the "Exculpated
     Persons"), shall be personally liable in any respect for any liability or
     obligation hereunder or in any other Operative Agreement including the
     payment of the principal of, or interest on, the Notes, or for monetary
     damages for the breach of performance of any of the covenants contained in
     the Credit Agreement, the Notes, this Agreement, the Security Agreement or
     any of the other Operative Agreements. The Agent (for itself and on behalf
     of the Lenders) agrees that, in the event the Agent or any Lender pursues
     any remedies available to them under the Credit Agreement, the Notes, this
     Agreement, the Security Agreement, the Mortgage Instruments or under any
     other Operative Agreement, neither the Lenders nor the Agent shall have any
     recourse against any Exculpated Person, for any deficiency, loss or Claim
     for monetary damages or otherwise resulting therefrom and recourse shall be
     had solely and exclusively against the CORI Trust Estate and the Credit
     Parties (with respect to the Credit Parties' obligations under the Lease,
     the Participation Agreement and the Agency Agreement); but nothing
     contained herein shall be taken to prevent recourse against or the
     enforcement of remedies against the CORI Trust Estate in respect of any and
     all liabilities, obligations and undertakings contained herein, in the
     Credit Agreement, in the Notes, in the Security Agreement, the Mortgage
     Instruments or in any other Operative Agreement. Notwithstanding the
     provisions of this Section, nothing in this Agreement, the Credit
     Agreement, the Notes, the Security Agreement, the Mortgage Instruments or
     any other Operative Agreement shall: (i) constitute a waiver, release or
     discharge of any indebtedness or obligation evidenced by the Notes or
     arising under this Agreement, the Security Agreement, the Mortgage
     Instruments or the Credit Agreement or secured by the Security Agreement,
     the Mortgage Instruments or any other Operative Agreement, but the same
     shall continue until paid or discharged; (ii) relieve the Lessor or any
     Exculpated Person from liability and responsibility for (but only to the
     extent of the damages arising by reason of): (a) active waste knowingly
     committed by the Lessor or any Exculpated Person with respect to the
     Properties or (b) any fraud, gross negligence, willful misconduct or
     willful breach on the part of the Lessor or any such Exculpated Person;
     (iii) relieve the Lessor or any Exculpated Person from liability and
     responsibility for (but only to the extent of the moneys misappropriated,
     misapplied or not turned over) (a) except for Excepted Payments,
     misappropriation or misapplication by the Lessor (i.e., application in a
     manner contrary to any Operative Agreement) of any insurance proceeds or
     condemnation award paid or delivered to the Lessor by any Person other than
     the Agent, (b) except for Excepted Payments, any deposits or any escrows or
     amounts owed by the Lessee under the Agency Agreement held by the Lessor or
     (c) except for Excepted Payments, any rents or other income received by the
     Lessor from any Credit Party that are not turned over to the Agent; or (iv)
     affect or in any way limit the Agent's rights and remedies under any
     Operative Agreement with respect to the Rents and its rights and powers
     thereunder or to obtain a judgment against the Lessee's interest in the
     Properties or to the extent the Lessee may be personally liable as
     otherwise contemplated in clauses (ii) and (iii) of this Section.

                                       54
<PAGE>

     14.11  Rights of the Credit Parties.
            ----------------------------

     Notwithstanding any provision of the Operative Agreements, if at any time
all obligations (i) of the Owner Trustee under the Credit Agreement and the
Security Documents and (ii) of the Credit Parties under the Operative Agreements
have in each case been satisfied or discharged in full, then the Credit Parties
shall be entitled to (a) terminate the Lease and the guaranty obligations under
Section 8B (other than the obligations under Section 8B.5) and (b) receive all
amounts then held under the Operative Agreements and all proceeds with respect
to any of the Properties. Upon the termination of the Lease and the guaranty
obligations under Section 8B (other than the obligations under Section 8B.5)
pursuant to the foregoing clause (a), except as provided under Section 22.1 of
the Lease, the Lessor at the Lessee's expense shall transfer to the Lessee all
of its right, title and interest free and clear of the Lien of the Lease and all
Lessor Liens in and to any Properties then subject to the Lease and any amounts
or proceeds referred to in the foregoing clause (b) shall be paid over to the
Lessee.

     14.12  Further Assurances.
            ------------------

     The parties hereto shall promptly cause to be taken, executed, acknowledged
or delivered all such further acts, conveyances, documents and assurances as the
other parties may from time to time reasonably request in order to carry out and
effectuate the intent and purposes of this Participation Agreement, the other
Operative Agreements and the transactions contemplated hereby and thereby
(including, without limitation, the preparation, execution and filing of any and
all Uniform Commercial Code financing statements and other filings or
registrations which the parties hereto may from time to time request to be filed
or effected). The Lessee, without need of any prior request from any other
party, shall take such action as may be necessary (including any action
specified in the preceding sentence), or (if Owner Trustee shall so request) as
so requested, in order to maintain and protect all security interests provided
for hereunder or under any other Operative Agreement.

     14.13  Calculations under Operative Agreements.
            ---------------------------------------

     The parties hereto agree that all calculations and numerical determinations
to be made under the Operative Agreements by the Owner Trustee shall be made by
the Agent and that such calculations and determinations shall be conclusive and
binding on the parties hereto in the absence of manifest error.

     14.14  Confidentiality.
            ---------------

     Each of the Owner Trustee, the Holders, the Agent and the Lenders severally
hereby agrees to use reasonable efforts to keep confidential all non-public
information pertaining to any Credit Party or such Credit Party's Subsidiaries
which is provided to it by any Credit Party or such Credit Party's Subsidiaries
and which an officer of any Credit Party or any of such Credit Party's
Subsidiaries has requested in writing be kept confidential, and shall not
intentionally disclose such information to any Person except:

                                       55
<PAGE>

          (a) to the extent such information is public when received by such
     Person or becomes public thereafter due to the act or omission of any party
     other than such Person;

          (b) to the extent such information is lawfully and independently
     obtained from a source other than a Credit Party or any of such Credit
     Party's Affiliates and such Person neither knows or has reason to know that
     such information from such source is subject to an obligation of
     confidentiality or, if such information is subject to an obligation of
     confidentiality, that disclosure of such information is permitted;

          (c) to counsel, auditors, accountants or agents retained by any such
     Person or any Affiliates of any such Person provided they agree to keep
     such information confidential as if such Person or Affiliate were party to
     this Agreement and to financial institution regulators, including examiners
     of any Lender, the Agent or the Owner Trustee, any Holder or any Affiliate
     in the course of examinations of such Persons;

          (d) in connection with any litigation or the enforcement or
     preservation of the rights of the Agent, the Owner Trustee, the Lessor, any
     Lender or any Holder under the Operative Agreements;

          (e) to the extent required by any applicable statute, rule or
     regulation or court order (including, without limitation, by way of
     subpoena) or pursuant to the request of any regulatory or Governmental
     Authority having jurisdiction over any such Person; provided, however, that
     such Person shall endeavor (if not otherwise prohibited by Law) to notify
     the Lessee prior to any disclosure made pursuant to this clause (e), except
     that no such Person shall be subject to any liability whatsoever for any
     failure to so notify the Lessee;

          (f) the Agent may disclose such information to the Lenders; or

          (g) to the extent disclosure to other financial institutions or other
     Persons is appropriate in connection with any proposed or actual (i)
     assignment or grant of a participation by any of the Lenders of interests
     in the Credit Agreement and/or any Note to such other financial
     institutions or (ii) assignment by any Holder of interests in the Trust
     Agreement to another Person; so long as such financial institution or other
     Person first executes and delivers a "Confidentiality Agreement" in the
     form attached hereto as Exhibit J.

     The obligations of any such financial institution or other Person that has
executed a Confidentiality Agreement in the form of Exhibit J hereto shall be
                                                    ---------
superseded by this Section 14.14 upon the date upon which such financial
institution or other Person becomes a Lender or Holder hereunder.

                            [signature pages follow]

                                       56
<PAGE>

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

                              CAPITAL ONE REALTY, INC., as
                              Construction Agent and as Lessee

                              By:   /s/ Stephen Linehan
                                    --------------------------------------------
                              Name:   Stephen Linehan
                                      ------------------------------------------
                              Title:  Director of Corporate Funding
                                      ------------------------------------------

                              CAPITAL ONE BANK,
                              as Guarantor

                              By:   /s/ Stephen Linehan
                                    --------------------------------------------
                              Name:   Stephen Linehan
                                      ------------------------------------------
                              Title:  Director of Corporate Funding
                                      ------------------------------------------

                           [Signature pages continue]
<PAGE>

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

                              By:   /s/ Val T. Orton
                                    --------------------------------------------
                              Name:   Val T. Orton
                                      ------------------------------------------
                              Title:  Vice President
                                      ------------------------------------------

                           [Signature pages continue]
<PAGE>

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

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

                           [Signature pages continue]
<PAGE>

                              FIRST NATIONAL BANK OF CHICAGO, as a Holder and a
                              Lender

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

                           [Signature pages continue]
<PAGE>

                              BARCLAYS BANK PLC, as a Holder and a Lender

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

                           [Signature pages continue]
<PAGE>

                              FIRST UNION NATIONAL BANK, as a Holder and a
                              Lender

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

                           [Signature pages continue]
<PAGE>

                              BMO GLOBAL CAPITAL SOLUTIONS, INC., as a Holder

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

                           [Signature pages continue]
<PAGE>

                              BMO GLOBAL CAPITAL SOLUTIONS, INC., as a Lender

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

                           [Signature pages continue]
<PAGE>

                              BANK OF MONTREAL, as a Lender

                              By:   /s/ Kanu Modi
                                    --------------------------------------------
                              Name:    Kanu Modi
                                       -----------------------------------------
                              Title:   Director
                                       -----------------------------------------

                           [Signature pages continue]
<PAGE>

                              KBC BANK N.V., as a Lender

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

                           [Signature page continues]
<PAGE>

                              CREDIT LYONNAIS - NY BRANCH, as a Lender

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

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

                             [Signature pages end]
<PAGE>

                                 SCHEDULE 5.11
                                 --------------

 [Description of Property located at 8715 Henderson Road, Tampa, Florida 33634]
<PAGE>

                                   EXHIBIT A
                                   ---------

                               REQUISITION FORM
                               ----------------

                          (Capital One Realty, Inc.)
       (Pursuant to Sections 4.2 and 5.2 of the Participation Agreement)

     Capital One Realty, Inc., a Delaware corporation (the "Company") hereby
certifies as true and correct and delivers the following Requisition to First
Security Bank, National Association, not individually, except as expressly
stated in the Participation Agreement (hereinafter defined), but solely as Owner
Trustee under the Capital One Realty Trust 1998-1 ("Lessor"), the banks and
                                                    ------
other lending institutions parties thereto from time to time, as the holders
(the "Holders"), the banks and other lending institutions parties thereto from
      -------
time to time, as lenders (the "Lenders") and Bank of America, N.A., as
Administrative Agent for the Lenders and respecting the Security Documents, as
Administrative Agent for the Lenders and the Holders, to the extent of their
interests (the "Agent"):
                -----

     Reference is made herein to that certain Participation Agreement dated as
of September 3, 1999 (as such may be amended from time to time, the
"Participation Agreement") among the Company, in its capacity as Lessee and as
------------------------
Construction Agent, the Guarantor, the Lessor, the Holders, the Lenders and the
Agent. Capitalized terms used herein but not otherwise defined herein shall have
the meanings set forth therefor in the Participation Agreement.

Check one:

          ____ INITIAL CLOSING DATE: _________________
          (three Business Days prior notice required for Advance)

          ____ PROPERTY CLOSING DATE: _________________
          (three Business Days prior notice required for Advance)

          ____ CONSTRUCTION ADVANCE DATE: _____________
          (three Business Days prior notice required for Advance)

1.   Transaction Expenses and other fees, expenses and disbursements under
     Article IX of the Participation Agreement and any and all other amounts
     contemplated to be financed under the Participation Agreement including
     without limitation any Work, broker's fees, taxes, recording fees and the
     like (with supporting invoices or closing statement attached):

<TABLE>
<CAPTION>
             Party to Whom                         Amount Owed
             Amount is Owed                     (in U.S. Dollars)
             --------------                     -----------------
             <S>                                <C>

                 _______                             _______

                 _______                             _______

                 _______                             _______

                 _______                             _______

                 _______                             _______

</TABLE>

                                      A-1

<PAGE>

2.   Legal Description of Land (which shall be a legal description of the Land
     in connection with an Advance to pay Property Acquisition Costs and which
     shall otherwise be a street address for the applicable Property):  See
     attached Schedule 1
              ----------

3.   Aggregate Loans and Holder Fundings requested since the Initial Closing
     Date with respect to each Property for which Advances are requested under
     this Requisition (listed on a Property by Property basis), including all
     amounts requested under this Requisition:

            $______________                             [Property]

     In connection with this Requisition, the Company hereby requests that the
Lenders make Loans to the Lessor in the amount of $______________ and that the
Holders make Holder Fundings to the Lessor in the amount of $________________.
The Company hereby certifies (i) that the foregoing amounts requested do not
exceed the total aggregate of the Available Commitments plus the Available
Holder Commitments and (ii) each of the provisions of the Participation
Agreement applicable to the Loans and Holder Fundings requested hereunder have
been complied with as of the date of this Requisition.

     The Company has caused this Requisition to the executed by its duly
authorized officer as of this _____ day of __________, ___.

                              CAPITAL ONE REALTY, INC.

                              By:_______________________________________________
                              Name:_____________________________________________
                              Title:____________________________________________

                                      A-2

<PAGE>

                                  Schedule 1
                                  ----------

                           Legal Description of Land

                                      A-3

<PAGE>

                                   EXHIBIT B
                                   ---------

                               CAPITAL ONE BANK

                             OFFICER'S CERTIFICATE
                             ---------------------

           (Pursuant to Section 5.5 of the Participation Agreement)

CAPITAL ONE REALTY, INC., a Delaware corporation (the "Company") DOES HEREBY
CERTIFY as follows:

1.   The address for the subject Property is ___________________
     __________________________________.

2.   The Completion Date for the construction of Improvements at the Property
     occurred on ______________.

3.   The aggregate Property Cost for the Property was $___________.

4.   All Improvements have been made in accordance with all applicable Legal
     Requirements, in a good and workmanlike manner and otherwise in full
     compliance with the standards and practices of the Company with respect to
     Company-owned properties and improvements.

Capitalized terms used in this Officer's Certificate and not otherwise defined
have the respective meanings ascribed thereto in the Participation Agreement
dated as of September 3, 1999 among the Company, as Lessee and as Construction
Agent, Capital One Bank, as Guarantor, First Security Bank, National
Association, as Owner Trustee, the various banks and other lending institutions
which are parties thereto from time to time, as Holders, the various banks and
other lending institutions which are parties thereto from time to time, as
Lenders and Bank of America, N.A., as the Administrative Agent.

IN WITNESS WHEREOF, the Company has caused this Officer's Certificate to be duly
executed and delivered as of this ____ day of ______________, _____.

                              CAPITAL ONE REALTY, INC.

                              By:_______________________________________________
                              Name:_____________________________________________
                              Title:____________________________________________

                                      B-1
<PAGE>

                                   EXHIBIT C
                                   ---------

                         [Counsel Opinion for Lessee]
          (Pursuant to Section 6.1(c) of the Participation Agreement)

                             __________ ___, 1999

TO THOSE ON THE ATTACHED DISTRIBUTION LIST

     Re:  Tax Retention Operating Lease Financing Provided in favor of Capital
          One Realty, Inc.

Dear Sirs:

We have acted as special counsel to Capital One Realty, Inc., a Delaware
corporation (the "Lessee") and Capital One Bank, a Virginia banking corporation
(the "Guarantor") in connection with certain transactions contemplated by the
Participation Agreement dated as of September 3, 1999 (the "Participation
Agreement"), among the Lessee, the Guarantor, First Security Bank, National
Association, not individually, but solely as Owner Trustee under the Capital One
Realty Trust 1998-1 (the "Owner Trustee"), the various banks and other lending
institutions parties thereto from time to time, as the holders (the "Holders),
the various banks and other lending institutions parties thereto from time to
time, as the lenders (the "Lenders"), and Bank of America, N.A., as the
administrative agent for the Lenders and respecting the Security Documents, as
the administrative agent for the Lenders and the Holders, to the extent of their
interests (the "Administrative Agent"). This opinion is delivered pursuant to
Section 6.1(c) of the Participation Agreement. All capitalized terms used
herein, and not otherwise defined herein, shall have the meanings assigned
thereto in Appendix A to the Participation Agreement.

In connection with the foregoing, we have examined originals, or copies
certified to our satisfaction, of the Operative Agreements, and such other
corporate documents and records of the Credit Parties, certificates of public
officials and representatives of the Credit Parties as to certain factual
matters, and such other instruments and documents which we have deemed necessary
or advisable to examine for the purpose of this opinion. With respect to such
examination, we have assumed (i) the statements of fact made in all such
certificates, documents and instruments are true, accurate and complete; (ii)
the due authorization, execution and delivery of the Operative Agreements by the
parties thereto other than the Credit Parties; (iii) the genuineness of all
signatures (other than the signatures of persons signing on behalf of the Credit
Parties), the authenticity and completeness of all documents, certificates,
instruments, records and corporate records submitted to us as originals and the
conformity to the original instruments of all documents

                                      C-1
<PAGE>

submitted to us as copies, and the authenticity and completeness of the
originals of such copies; (iv) that all parties other than the Credit Parties
have all requisite corporate power and authority to execute, deliver and perform
the Operative Agreements; and (v) the enforceability of the Operative Agreements
against all parties thereto other than the Credit Parties.

Based on the foregoing, and having due regard for such legal considerations as
we deem relevant, and subject to the limitations and assumptions set forth
herein, including the matters set forth in the last two paragraphs hereof, we
are of the opinion that:

     (a) Each Credit Party is a corporation duly incorporated, validly existing
and in good standing under the laws of the state of its incorporation or
formation and has the power and authority to conduct its business as presently
conducted and to execute, deliver and perform its obligations under the
Operative Agreements to which it is a party. Each Credit Party is duly qualified
to do business in all jurisdictions in which its failure to so qualify would
materially impair its ability to perform its obligations under the Operative
Agreements to which it is a party or its financial position or its business as
now and now proposed to be conducted.

     (b) The execution, delivery and performance by each Credit Party of the
Operative Agreements to which it is a party have been duly authorized by all
necessary corporate action on the part of such Credit Party and the Operative
Agreements to which such Credit Party is a party have been duly executed and
delivered by such Credit Party.

     (c) The Operative Agreements to which each Credit Party is a party
constitute valid and binding obligations of such Credit Party enforceable
against such Credit Party in accordance with the terms thereof, subject to
bankruptcy, insolvency, liquidation, reorganization, fraudulent conveyance, and
similar laws affecting creditors' rights generally, and general principles of
equity (regardless of whether the application of such principles is considered
in a proceeding in equity or at law).

     (d) The execution and delivery by each Credit Party of the Operative
Agreements to which it is a party and compliance by such Credit Party with all
of the provisions thereof do not and will not (i) contravene the provisions of,
or result in any breach of or constitute any default under, or result in the
creation of any Lien (other than Permitted Liens) upon any of its property
under, its Articles of Incorporation or By-Laws or any indenture, mortgage,
chattel mortgage, deed of trust, lease, conditional sales contract, bank loan or
credit agreement or other agreement or instrument to which such Credit Party is
a party or by which it or any of its property may be bound or affected, or (ii)
contravene any Laws or any order of any Governmental Authority applicable to or
binding on such Credit Party.

     (e) No Governmental Action by, and no notice to or filing with, any
Governmental Authority is required for the due execution, delivery or
performance by any Credit Party of any of the Operative Agreements to which it
is a party.

     (f) Except as set forth on Schedule 1 hereto, there are no actions, suits
or proceedings pending or to our knowledge, threatened against any Credit Party
in any court or before any

                                      C-2
<PAGE>

Governmental Authority, that concern the Property or any Credit Party's interest
therein or that question the validity or enforceability of any Operative
Agreement to which such Credit Party is a party or the overall transaction
described in the Operative Agreements to which such Credit Party is a party.

     (g) Neither the nature of the Property, nor any relationship between any
Credit Party and any other Person, nor any circumstance in connection with the
execution, delivery and performance of the Operative Agreements to which such
Credit Party is a party is such as to require any approval of stockholders of,
or approval or consent of any trustee or holders of indebtedness of, such Credit
Party, except for such approvals and consents which have been duly obtained and
are in full force and effect.

     (h) The Security Documents which have been executed and delivered as of the
date of this opinion create, for the benefit of the holders of the Notes, the
security interest in the C Collateral described therein which by their terms
such Security Documents purports to create. Upon filing of the UCC-1 financing
statements with ________________________ [identify filing offices], the Agent
will have a perfected security interest in that portion of the Collateral which
can be perfected by such filing under Article 9 of the UCC.

     (i) The Operative Agreements to which First Security Bank, National
Association, as Owner Trustee, is a party constitute are enforceable against
First Security Bank, National Association, as Owner Trustee, as the case may be,
enforceable against First Security Bank, National Association, individually or
as Owner Trustee, in accordance with the terms thereof, subject to bankruptcy,
insolvency, liquidation, reorganization, fraudulent conveyance, and similar laws
affecting creditors, rights generally, and general principles of equity
(regardless of whether the application of such principles is considered in a
proceeding in equity or at law).

     (j) The execution and delivery by First Security Bank, National
Association, individually or as Owner Trustee, as the case may be, of the
Operative Agreements (other than the Trust Agreement) to which it is a party and
compliance by First Security Bank, National Association, individually or as
Owner Trustee, with all of the provisions thereof do not and will not contravene
any law, rule or regulation of ___________________.

     (k) The Mortgage Instrument and UCC fixture filings relating thereto are in
proper form for recording and/or filing with the _________________ and
___________________ [identify filing offices in state], respectively.

     This opinion is limited to the matters stated herein and no opinion is
implied or may be inferred beyond the matters stated herein. This opinion is
based on and is limited to the laws of the ______________________, and the
federal laws of the United States of America. Insofar as the foregoing opinion
relates to matters of law other than the foregoing, no opinion is hereby given.

This opinion is for the sole benefit of Lessee, the Guarantor, Bank of America,
N.A., as the Administrative Agent, the Holders, the Lenders, First Security
Bank, National Association, not individually, but solely as Owner Trustee under
the Capital One Realty Trust 1998-1 and their

                                      C-3
<PAGE>

respective successors and assigns and may not be relied upon by any other person
other than such parties and their respective successors and assigns without the
express written consent of the undersigned. The opinions expressed herein are as
of the date hereof and we make no undertaking to amend or supplement such
opinions if facts come to our attention or changes in the current law of the
jurisdictions mentioned herein occur which could affect such opinions.

                                   Very truly yours,

                                   [LESSEE'S COUNSEL]

                                      C-4
<PAGE>

                               Distribution List

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

The various banks and other lending institutions which are parties to the
Participation Agreement from time to time, as the Lenders.

The various banks and other lending institutions which are parties to the
Participation Agreement from time to time, as the Holders.

First Security Bank, National Association, not individually, but solely as Owner
Trustee under the Capital One Realty Trust 1998-1

                                      C-5
<PAGE>

                                   EXHIBIT D
                                   ---------

                            [NAME OF CREDIT PARTY]

                             OFFICER'S CERTIFICATE
          (Pursuant to Section 6.1(g) of the Participation Agreement)

     [NAME OF CREDIT PARTY], a ________ corporation (the "Company"), DOES HEREBY
CERTIFY as follows:

1.   Each and every representation and warranty of the Company contained in the
     Operative Agreements to which it is a party is true and correct on and as
     of the date hereof.

2.   No Default or Event of Default has occurred and is continuing under any
     Operative Agreement.

3.   Each Operative Agreement to which the Company is a party is in full force
     and effect with respect to it.

4.   The Company has duly performed and complied with all covenants, agreements
     and conditions contained in the Participation Agreement (hereinafter
     defined) or in any Operative Agreement required to be performed or complied
     with by it on or prior to the date hereof.

Capitalized terms used in this Officer's Certificate and not otherwise defined
herein have the respective meanings ascribed thereto in the Participation
Agreement dated as of September 3, 1999 among the Capital One Realty, Inc., as
Lessee and as Construction Agent, Capital One Bank, as guarantor (the
"Guarantor"), First Security Bank, National Association, not individually, but
 ---------
solely as owner Trustee under the Capital One Realty Trust 1998-1, the various
banks and other lending institutions which are parties thereto from time to
time, as holders (the "Holders"), the various banks and other lending
                       -------
institutions which are parties thereto from time to time, as lenders (the
"Lenders") and Bank of America, N.A., as Administrative Agent for the Lenders
and respecting the Security Documents, as Administrative Agent for the Lenders
and the Holders, to the extent of their interests (the "Agent")
                                                        -----

IN WITNESS WHEREOF, the Company has caused this Officer's Certificate to be duly
executed and delivered as of this _____ day of __________, 1999.

                              [NAME OF CREDIT PARTY]

                              By:_______________________________________________
                              Name:_____________________________________________
                              Title:____________________________________________

                                      D-1
<PAGE>

                                   EXHIBIT E
                                   ---------

                            [NAME OF CREDIT PARTY]

                             OFFICER'S CERTIFICATE
                             ---------------------
          (Pursuant to Section 6.1(h) of the Participation Agreement)

     [NAME OF CREDIT PARTY], a __________________ corporation (the "Company")
DOES HEREBY CERTIFY as follows:

1.   Attached hereto as Schedule I is a true, correct and complete copy of the
                        ----------
     resolutions of the Board of Directors of the Company duly adopted by the
     Board of Directors of the Company on __________. Such resolutions have not
     been amended, modified or rescinded since their date of adoption and remain
     in full force and effect as of the date hereof.

2.   Attached hereto as Schedule II is a true, correct and complete copy of the
                        -----------
     Articles of Incorporation of the Company on file in the Office of
     _____________. Such Articles of Incorporation have not been amended,
     modified or rescinded since their date of adoption and remain in full force
     and effect as of the date hereof.

3.   Attached hereto as Schedule III is a true, correct and complete copy of the
                        ------------
     Bylaws of the Company. Such Bylaws have not been amended, modified or
     rescinded since their date of adoption and remain in full force and effect
     as of the date hereof.

4.   The persons named below now hold the offices set forth opposite their
     names, and the signatures opposite their names and titles are their true
     and correct signatures.

<TABLE>
<CAPTION>

          Name                   Office                Signature
          ----                   ------                ---------
     <S>                    <C>                    <C>

     ________________       ________________       ________________

     ________________       ________________       ________________
</TABLE>

IN WITNESS WHEREOF, the Company has caused this Officer's Certificate to be duly
executed and delivered as of this _____ day of ___________, 1999.

                              [NAME OF CREDIT PARTY]

                              By:_______________________________________________
                              Name:_____________________________________________
                              Title:____________________________________________

                                      E-1
<PAGE>

                                  SCHEDULE I
                                  ----------

                               BOARD RESOLUTIONS

                                      E-2
<PAGE>

                                  SCHEDULE II
                                  -----------

                           ARTICLES OF INCORPORATION

                                      E-3
<PAGE>

                                 SCHEDULE III
                                 ------------

                                    BYLAWS

                                      E-4
<PAGE>

                                   EXHIBIT F
                                   ---------

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION

                             OFFICER'S CERTIFICATE
          (Pursuant to Section 6.2(d) of the Participation Agreement)

     FIRST SECURITY BANK, NATIONAL ASSOCIATION, not individually (except with
respect to paragraph 1 below, to the extent any such representations and
warranties are made in its individual capacity) but solely as owner trustee
under the Capital One Realty Trust 1998-1 (the "Owner Trustee"), DOES HEREBY
CERTIFY as follows:

(a)  Each and every representation and warranty of the Owner Trustee contained
     in the Operative Agreements to which it is a party is true and correct on
     and as of the date hereof.

(b)  Each Operative Agreement to which the Owner Trustee is a party is in full
     force and effect with respect to it.

(c)  The Owner Trustee has duly performed and complied with all covenants,
     agreements and conditions contained in the Participation Agreement
     (hereinafter defined) or in any Operative Agreement required to be
     performed or complied with by it on or prior to the date hereof.

Capitalized terms used in this Officer's Certificate and not otherwise defined
herein have the respective meanings ascribed thereto in the Participation
Agreement dated as of September 3, 1999 among Capital One Realty, Inc., as
Lessee and as Construction Agent, Capital One Bank, as guarantor (the
"Guarantor"), the Owner Trustee, the various banks and other lending
 ---------
institutions which are parties thereto from time to time, as holders (the
"Holders"), the various banks and other lending institutions which are parties
 -------
thereto from time to time, as lenders (the "Lenders") and Bank of America, N.A.,
as Administrative Agent for the Lenders and respecting the Security Documents,
as Administrative Agent for the Lenders and the Holders, to the extent of their
interests (the "Agent").
                -----

IN WITNESS WHEREOF, the Owner Trustee has caused this Officer's Certificate to
be duly executed and delivered as of this _____ day of __________ 1999.

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

                              By:______________________________________________
                              Name:____________________________________________
                              Title:___________________________________________

                                      F-1
<PAGE>

                                   EXHIBIT G
                                   ---------

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION

                             OFFICER'S CERTIFICATE
                             ---------------------
          (Pursuant to Section 6.2(e) of the Participation Agreement)

                      CERTIFICATE OF ASSISTANT SECRETARY

     I, ______________________, duly elected and qualified Assistant Secretary
of the Board of Directors of First Security Bank, National Association (the
"Association"), hereby certify as follows:

     1.   The Association is a National Banking Association duly organized,
validly existing and in good standing under the laws of the United States. With
respect thereto the following is noted:

     A.   Pursuant to Revised Statutes 324, et seq., as amended, 12 U.S.C. 1, et
          seq., the Comptroller of the Currency charters and exercises
          regulatory and supervisory authority over all National Banking
          Associations;

     B.   On December 9, 1881, the First National Bank of Ogden, Utah was
          chartered as a National Banking Association under the laws of the
          United States and under Charter No. 2597;

     C.   On October 2, 1922, in connection with a consolidation of The First
          National Bank of Ogden, Ogden, Utah, and The Utah National Bank of
          Ogden, Ogden, Utah, the title was changed to "The First & Utah
          National Bank of Ogden"; on January 18, 1923, The First & Utah
          National Bank of Ogden changed its title to "First Utah National Bank
          of Ogden"; on January 19, 1926, the title was changed to "First
          National Bank of Ogden"; on February 24, 1934, the title was changed
          to "First Security Bank of Utah, National Association"; on June 21,
          1996, the title was changed to "First Security Bank, National
          Association"; and

     D.   First Security Bank, National Association, Ogden, Utah, continues to
          hold a valid certificate to do business as a National Banking
          Association.

     2.   The Association's Articles of Association, as amended, are in full
force and effect, and a true, correct and complete copy is attached hereto as
Schedule A and incorporated herein by reference. Said Articles were last amended
October 20, 1975, as required by law on notice at a duly called special meeting
of the shareholders of the Association.

                                      G-1
<PAGE>

     3.   The Association's By-Laws, as amended, are in full force and effect;
and a true, correct and complete copy is attached hereto as Schedule B and
incorporated herein by reference. Said By-Laws, still in full force and effect,
were adopted September 17, 1942, by resolution, after proper notice of
consideration and adoption of By-Laws was given to each and every shareholder,
at a regularly called meeting of the Board of Directors with a quorum present.

     4.   Pursuant to the authority vested in it by an Act of Congress approved
December 23, 1913 and known as the Federal Reserve Act, as amended, the Federal
Reserve Board (now the Board of Governors of the Federal Reserve System) has
granted to the Association now known as "First Security Bank, National
Association" of Ogden, Utah, the right to act, when not in contravention of
State or local law, as trustee, executor, administrator, registrar of stocks and
bonds, guardian of estates, assignee, receiver, committee of estates of
lunatics, or in any other fiduciary capacity in which State banks, trust
companies or other corporations which come into competition with National Banks
are permitted to act under the laws of the State of Utah; and under the
provisions of applicable law, the authority so granted remains in full force and
effect.

     5.   Pursuant to authority vested by Act of Congress (12 U.S.C. 92a and 12
U.S.C. 481, as amended) the Comptroller of the Currency has issued Regulation 9,
as amended, dealing, in part, with the Fiduciary Powers of National Banks, said
regulation providing in subparagraph 9.7 (a) (1-2):

     (1)  The board of directors is responsible for the proper exercise of
          fiduciary powers by the Bank.  All matters pertinent thereto,
          including the determination of policies, the investment and
          disposition of property held in fiduciary capacity, and the direction
          and review of the actions of all officers, employees, and committees
          utilized by the Bank in the exercise of its fiduciary powers, are the
          responsibility of the board.  In discharging this responsibility, the
          board of directors may assign, by action duly entered in the minutes,
          the administration of such of the Bank's fiduciary powers as it may
          consider proper to assign to such director(s), officer(s), employee(s)
          or committee(s) as it may designate.

     (2)  No fiduciary account shall be accepted without the prior approval of
          the board, or of the director(s), officer(s), or committee(s) to whom
          the board may have designated the performance of that responsibility.

     6.   A Resolution relating to Exercise of Fiduciary Powers was adopted by
the Board of Directors at a meeting held July 26, 1994 at which time there was a
quorum present; said resolution is still in full force and effect and has not
been rescinded. Said resolution is attached hereto as Schedule C and
incorporated herein by reference.

                                      G-2
<PAGE>

     7.   A Resolution relating to the Designation of Officers and Employees to
Exercise Fiduciary Powers was adopted by the Trust Policy Committee at a meeting
held February 7, 1996 at which time a quorum was present; said resolution is
still in full force and effect and has not been rescinded.  Said resolution is
attached hereto as Schedule D and is incorporated herein by reference.

     8.   Attached hereto as Schedule E and incorporated herein by reference, is
a listing of facsimile signatures of persons authorized (herein "Authorized
Signatory or Signatories") on behalf of the Association and its Trust Group to
act in exercise of its fiduciary powers subject to the resolutions in Paragraphs
6 and 7, above.

     9.   The principal office of the First Security Bank, National Association,
Trust Group and of its departments, except for the St. George, Utah, Ogden,
Utah, and Provo, Utah, branch offices, is located at 79 South Main Street, Salt
Lake City, Utah 84111 and all records relating to fiduciary accounts are located
at such principal office of the Trust Group or in storage facilities within Salt
Lake County, Utah, except for those of the Ogden, Utah, St. George, Utah, and
Provo, Utah, branch offices, which are located at said office.

     10.  Each Authorized Signatory (i) is a duly elected or appointed, duly
qualified officer or employee of the Association; (ii) holds the office or job
title set forth below his or her name on the date hereof; (iii) and the
facsimile signature appearing opposite the name of each such officer or employee
is a true replica of his or her signature.

                                      G-3
<PAGE>

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
Association this __________ day of _________________, ______.

(SEAL)

                                   ________________________________________
                                   R. James Steenblik
                                   Senior Vice President
                                   Assistant Secretary

                                      G-4
<PAGE>

                                  Schedule A
                                  ----------

                            Articles of Association

                                      G-5
<PAGE>

                                  Schedule B
                                  ----------

                                    Bylaws

                                      G-6
<PAGE>

                                  Schedule C
                                  ----------

                            Resolution Relating to
                         Exercise of Fiduciary Powers

                                      G-7
<PAGE>

                                  Schedule D
                                  ----------

                          Resolution Relating to the
                     Designation of Officers and Employees
                         To Exercise Fiduciary Powers

                                      G-8
<PAGE>

                                  Schedule E
                                  ----------

                      Authorized Signatory or Signatories

                                      G-9
<PAGE>

                                   EXHIBIT H
                                   ---------

                   [Owner Trustee's Outside Counsel Opinion]
                      (Pursuant to Section 6.2(f) of the
                           Participation Agreement)

                              __________ __, 1999

TO THOSE ON THE ATTACHED DISTRIBUTION LIST

Re:  Amended and Restated Trust Agreement dated as of August 31, 1999

Dear Sirs:

We have acted as special counsel for First Security Bank, National Association,
a national banking association, in its individual capacity ("FSB") and in its
capacity as trustee (the "Owner Trustee") under the Amended and Restated Trust
Agreement dated as of September 3, 1999 (the "Trust Agreement") by and among it
and the Holders, in connection with the execution and delivery by the Owner
Trustee of the Operative Agreements to which it is a party.  Except as otherwise
defined herein, the terms used herein shall have the meanings set forth in
Appendix A to the Participation Agreement dated as of September 3, 1999 among
Capital One Realty, Inc., as Lessee and as Construction Agent, Capital One Bank,
as guarantor (the "Guarantor"), the Owner Trustee, the various banks and other
                   ---------
lending institutions which are parties thereto from time to time, as holders
(the "Holders"), the various banks and other lending institutions which are
      -------
parties thereto from time to time, as lenders (the "Lenders") and Bank of
America, N.A., as Administrative Agent for the Lenders and respecting the
Security Documents, as Administrative Agent for the Lenders and the Holders, to
the extent of their interests (the "Agent").
                                    -----

We have examined originals or copies, certified or otherwise identified to our
satisfaction, of such documents, corporate records and other instruments as we
have deemed necessary or advisable for the purpose of rendering this opinion.

Based upon the foregoing, we are of the opinion that:

     1.   FSB is a national banking association duly organized, validly existing
     and in good standing under the laws of United States of America and each of
     FSB and the Owner Trustee has under the laws of the State of Utah and
     federal banking law the power and authority to enter into and perform its
     obligations under the Trust Agreement and each other Operative Agreement to
     which it is a party.

                                      H-1
<PAGE>

     2.   The Owner Trustee is the duly-appointed trustee under the Trust
     Agreement.

     3.   The Trust Agreement has been duly authorized, executed and delivered
     by one of the officers of FSB and, assuming due authorization, execution
     and delivery by the Holders, is a legal, valid and binding obligation of
     the Owner Trustee (and to the extent set forth therein, against FSB),
     enforceable against the Owner Trustee (and to the extent set forth therein,
     against FSB) in accordance with its terms, and the Trust Agreement creates
     under the laws of the State of Utah for the Holders the beneficial interest
     in the CORI Trust Estate it purports to create and is a valid trust under
     the laws of the State of Utah.

     4.   The Operative Agreements to which it is party have been duly
     authorized, executed and delivered by FSB, and, assuming due authorization,
     execution and delivery by the other parties thereto, are legal, valid and
     binding obligations of FSB, enforceable against FSB in accordance with
     their respective terms.

     5.   The Operative Agreements to which it is party have been duly
     authorized, executed and delivered by the Owner Trustee, and, assuming due
     authorization, execution and delivery by the other parties thereto, are
     legal, valid and binding obligations of the Owner Trustee, enforceable
     against the Owner Trustee in accordance with their respective terms. The
     Notes and the Certificates have been duly issued, executed and delivered by
     the Owner Trustee, pursuant to authorization contained in the Trust
     Agreement, and the Certificates are entitled to the benefits and security
     afforded by the Trust Agreement in accordance with its terms and the terms
     of the Trust Agreement.

     6.   The execution and delivery by each of FSB and the Owner Trustee of the
     Trust Agreement and the Operative Agreements to which it is a party, and
     compliance by FSB or Owner Trustee, as the case may be, with all of the
     provisions thereof do not and will not contravene any Laws applicable to or
     binding on FSB, or as Owner Trustee, or contravene the provisions of, or
     constitute a default under, its charter documents or by-laws or, to our
     knowledge after due inquiry, any indenture, mortgage contract or other
     agreement or instrument to which FSB or Owner Trustee is a party or by
     which it or any of its property may be bound or affected.

     7.   The execution and delivery of the Operative Agreements by each of FSB
     and the Owner Trustee and the performance by each of FSB and the Owner
     Trustee of their respective obligations thereunder does not require on or
     prior to the date hereof the consent or approval of, the giving of notice
     to, the registration or filing with, or the taking of any action in respect
     of any Governmental Authority or any court.

     8.   Assuming that the trust created by the Trust Agreement is treated as a
     grantor trust for federal income tax purposes within the contemplation of
     Section 671 through 678 of the Internal Revenue Code of 1986, there are no
     fees, taxes, or other charges (except taxes imposed on fees payable to the
     Owner Trustee) payable to the State of Utah or any political subdivision
     thereof in connection with the execution, delivery or performance by the
     Owner Trustee, the Agent, the Lenders, the Lessee or the Holders, as the
     case may be, of the

                                      H-2
<PAGE>

     Operative Agreements or in connection with the acquisition of any Property
     by the Owner Trustee or in connection with the making by any Holder of its
     investment in the Trust or its acquisition of the beneficial interest in
     the CORI Trust Estate or in connection with the issuance and acquisition of
     the Certificate, or the Notes, and neither the Owner Trustee, the CORI
     Trust Estate nor the trust created by the Trust Agreement will be subject
     to any fee, tax or other governmental charge (except taxes on fees payable
     to the Owner Trustee) under the laws of the State of Utah or any political
     subdivision thereof on, based on or measured by, directly or indirectly,
     the gross receipts, net income or value of the CORI Trust Estate by reason
     of the creation or continued existence of the trust under the terms of the
     Trust Agreement pursuant to the laws of the State of Utah or the Owner
     Trustee's performance of its duties under the Trust Agreement.

     9.   There is no fee, tax or other governmental charge under the laws of
     the State of Utah or any political subdivision thereof in existence on the
     date hereof on, based on or measured by any payments under the
     Certificates, Notes or the beneficial interests in the CORI Trust Estate,
     by reason of the creation of the trust under the Trust Agreement pursuant
     to the laws of the State of Utah or the Owner Trustee's performance of its
     duties under the Trust Agreement within the State of Utah.

     10.  Upon the filing of the financing statement on form UCC-1 in the form
     attached hereto as Exhibit A with the _____________, the Administrative
     Agent's security interest in the CORI Trust Estate, for the benefit of the
     Lenders, will be perfected, to the extent that such perfection is governed
     by Article 9 of the Uniform Commercial Code as in effect in the State of
     Utah (the "Utah UCC").

Your attention is directed to the Utah UCC, which provides, in part, that a
filed financing statement which does not state a maturity date or which states a
maturity date of more than five years is effective only for a period of five
years from the date of filing, unless within six months prior to the expiration
of said period a continuation statement is filed in the same office or offices
in which the original statement was filed.  The continuation statement must be
signed by the secured party, identify the original statement by file number and
state that the original statement is still effective.  Upon the timely filing of
a continuation statement, the effectiveness of the original financing statement
is continued for five years after the last date to which the original statement
was effective.  Succeeding continuation statements may be filed in the same
manner to continue the effectiveness of the original statement.

The opinions set forth in paragraphs 3 and 4 above are subject to the
qualification that enforceability of the Trust Agreement and the other Operative
Agreements to which the Owner Trustee is a party, in accordance with their
respective terms, may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting enforcement of creditors' rights generally.

We are attorneys admitted to practice in the State of Utah and in rendering the
foregoing opinions we have not passed upon, or purported to pass upon, the laws
of any jurisdictions other than the State of Utah and the federal banking law
governing the banking and trust powers of FSB.

                                      H-3
<PAGE>

This opinion is for the sole benefit of Capital One Realty, Inc., Capital One
Bank, Bank of America, N.A., as the Administrative Agent, the Lenders, the
Holders, FSB, not individually, but solely as Owner Trustee under the Capital
One Realty Trust 1998-1 and their respective successors and assigns and may not
be relied upon by any other person other than such parties and their respective
successors and assigns without the express written consent of the undersigned.
The opinions expressed herein are as of the date hereof and we make no
undertaking to amend or supplement such opinions if facts come to our attention
or changes in the current law of the jurisdictions mentioned herein occur which
could affect such opinions.

                                   Very truly yours,

                                   RAY, QUINNEY & NEBEKER
                                   M. John Ashton

                                      H-4
<PAGE>

                               Distribution List
                               -----------------

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

The various banks and other lending institutions which are parties to the
Participation Agreement from time to time, as Holders

The various banks and other lending institutions which are parties to the
Participation Agreement from time to time, as Lenders

Capital One Realty, Inc., as the Lessee and as the Construction Agent

Capital One Bank, as Guarantor

First Security Bank, National Association, not individually, but solely as Owner
Trustee under the Capital One Realty Trust 1998-1

                                      H-5
<PAGE>

                                   EXHIBIT I
                                   ---------

                      [Description of Material Litigation]

     In connection with the transfer of substantially all of Signet Bank's
credit card business to Capital One Bank in November 1994, Capital One Financial
Corporation and Capital One Bank agreed to indemnify Signet Bank (which has
since been acquired by First Union Bank on November 30, 1997) for certain
liabilities incurred in litigation arising from that business, which may include
liabilities, if any, incurred in the purported class action case described
below.

     During 1995, Capital One Financial Corporation and Capital One Bank became
involved in a purported class action suit relating to certain collection
practices engaged in by Signet Bank and, subsequently, by Capital One Bank. The
complaint in this case alleges that Signet Bank and/or Capital One Bank violated
a variety of California state statutes and constitutional and common law duties
by filing collection lawsuits, obtaining judgements and pursuing garnishment
proceedings in the Virginia state courts against defaulted credit card customers
who were not residents of Virginia. This case was filed in the Superior Court of
California in the County of Alameda, Southern Division, on behalf of a class of
California residents. The complaint in this case seeks unspecified statutory
damages, compensatory damages, punitive damages, restitution, attorneys' fees
and costs, a permanent injunction and other equitable relief.

     In early 1997, the California court entered judgment in favor of Capital
One Bank on all of the plaintiffs' claims. The plaintiffs appealed the ruling to
the California Court of Appeal First Appellate District Division 4. In early
1999, the Court of Appeals affirmed the trial court's ruling in favor of Capital
One Bank on six counts, but reversed the trial court's ruling on two counts of
the plaintiffs' complaint. The California Supreme Court rejected Capital One
Bank's Petition for Review of the remaining two counts and remitted them to the
trial court. The Bank intends to petition for further appellate review of the
ruling on the two remaining counts.

     Because no specific measure of damages is demanded in the complaint of the
California case and the trial court entered judgment in favor of Capital One
Bank before the parties completed any significant discovery, an informed
assessment of the ultimate outcome of this case cannot be made at this time.
Management believes, however, that there are meritorious defenses to this
lawsuit and intends to continue to defend it vigorously.

     Capital One Financial Corporation is commonly subject to various other
pending and threatened legal actions arising from the conduct of its normal
business activities. In the opinion of management, the ultimate aggregate
liability, if any, arising out of any pending or threatened action will not have
a material adverse effect on the consolidated financial condition of Capital One
Financial Corporation. At the present time, however, management is not in a
position to determine whether the resolution of pending or threatened litigation
will have a material effect on Capital One Financial Corporation's results of
operations in any future reporting period.

                                      I-1
<PAGE>

                                   EXHIBIT J
                                   ---------

                      [Form of Confidentiality Agreement]

______________, 1999

[Address]

Attention:

Re:  Confidentiality Agreement
     -------------------------

Dear __________________:

     In the course of further discussions between you and Capital One Financial
Corporation and/or any one or more of its subsidiaries or affiliates
(individually and collectively, "Capital One"), you may be supplied with
materials and information concerning Capital One and its subsidiaries or
affiliates and our business, which information is non-public, confidential or
proprietary in nature ("Confidential Information"). Because the use or
disclosure of such Confidential Information would be damaging to Capital One,
Capital One is willing to supply you with such information only if you agree to
the conditions set forth in this confidentiality agreement (this "Agreement").

          1. The Transaction. The services you are contemplating providing to
             ---------------
Capital One are in connection with those certain Participation Agreements dated
as of September 3, 1999 (together, the "Participation Agreement"), among (i)
Capital One Reality, Inc., as Construction Agent and Lessee, Capital One Bank,
as Guarantor, First Security Bank, National Association, as Owner Trustee, the
Holders named therein and the Lenders named therein and (ii) Capital One
Services, Inc., as Construction Agent and Lessee, Capital One Financial
Corporation, as Guarantor, First Security Bank, National Association, as Owner
Trustee, the Holders named therein and the Lenders named therein (the
"Transaction"). Terms used herein but not defined herein have the meanings set
forth in the respective Participation Agreements.

          2. Description of Information. Confidential Information includes
             --------------------------
without limitation (i) information transmitted in written, oral, magnetic or any
other medium, and (ii) all copies and reproductions, in whole or in part, of
such information and (iii) all summaries, analyses, compilations, studies, notes
or other records which contain, reflect, or are generated from such information.
Confidential Information does not include information that (w) has become part
of the public domain through no act or omission of you; (x) was lawfully
disclosed

                                      J-1
<PAGE>

to you without restriction on disclosure by a third party; (y) was developed
independently by you; or (z) is or was lawfully and independently provided to
you prior to disclosure hereunder, from a third party who is not subject to an
obligation of confidentiality or otherwise prohibited from transmitting such
information.

          3. Nondisclosure of Information. You agree that you will use the
             ----------------------------
Confidential Information solely for the purpose of the Transaction and, except
as provided in paragraph 7 hereof, agree to reveal the Confidential Information
only to your affiliates, subsidiaries, directors, officers, employees and agents
(collectively "Affiliates") with a need to know the Confidential Information for
the purpose of the Transaction. Except as provided in paragraph 7 hereof, you
agree not to disclose to any third party any of the Confidential Information now
or hereafter received or obtained by you without our prior written consent;
provided, however, that you may disclose any such Confidential Information to
your respective accountants, attorneys and other confidential advisors
(collectively "Advisors") who need to know such information for the purpose of
assisting you in connection with the Transaction. You agree to be responsible
for any breach of this Agreement by your Affiliates and Advisors, and you agree
that your Affiliates and Advisors will be advised by you of the confidential
nature of such information and shall agree to be bound by this Agreement.

          4. Nondisclosure of Transaction. Neither you nor your Agents or
             ----------------------------
Advisors, without our prior written consent, will disclose to any person the
fact that Confidential Information has been provided to you or them, that
discussions or negotiations are taking place with respect to the Transaction, or
the existence, terms, conditions, or other facts of such Transaction, including
the status thereof.

          5. Ownership of Information. You acknowledge and agree that any
             ------------------------
Confidential Information provided to you, in whatever form, is the sole property
of Capital One. Neither you nor your Affiliates or Advisors shall use any of the
Confidential Information now or hereafter received or obtained from Capital One
in furtherance of your business or the business of anyone else whether or not in
competition with Capital One, or for any other purpose whatsoever, other than as
contemplated by the Transaction. You agree that if we should request that you
destroy or return the Confidential Information, you shall return or destroy such
Confidential Information as so directed.

          6. Remedies. You acknowledge that all Confidential Information is
             --------
considered to be proprietary and of competitive value, and in many instances
trade secrets. You agree that because of the unique nature of the Confidential
Information any breach of this Agreement would cause Capital One irreparable
harm, and money damages and other remedies available at law in the event of a
breach would not be adequate to compensate Capital One for any such breach.
Accordingly, you agree that we shall be entitled, without the requirement of
posting a bond or other security, to equitable relief, including, without
limitation, injunctive relief and specific performance, as a remedy for any such
breach. Such relief shall be in addition to, and not in lieu of, all other
remedies available to us whether at law or in equity.

                                      J-2
<PAGE>

          7. Compelled Disclosure. If you or any of your Affiliates or Advisors
             --------------------
is legally compelled (whether by deposition, interrogatory, request for
documents, subpoena, civil investigation, demand or similar process) to disclose
any of the Confidential Information (including the fact that discussions or
negotiations are taking place with respect to the Transaction) you shall use
your best efforts to notify Capital One in writing of such requirement prior to
disclosure thereof so that we may seek a protective order or other appropriate
remedy and/or waive compliance with the provisions hereof; provided, that you
                                                           --------
shall not be subject to any liability whatsoever for any failure to so notify
Capital One.

          8. No Waiver of Rights. It is understood and agreed that no failure or
             -------------------
delay by Capital One in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any right,
power or privilege hereunder.

          9. No Representations and Warranties. You understand and acknowledge
             ---------------------------------
that Capital One is not making any representation or warranty, expressed or
implied, as to the accuracy or completeness of the Confidential Information and
we shall not be liable to you or to any other person resulting from the use of
the Confidential Information. Only those representations or warranties that are
made in any definitive agreement executed in connection with the Transaction,
and subject to any limitations and restrictions as may be specified in such
definitive agreement, shall have any legal effect.

          10. Indemnification; Expenses. You agree to indemnify Capital One for
              -------------------------
any and all losses, liabilities, obligations, damages, penalties, judgments,
suits, costs, expenses or disbursements of any kind (including, without
limitation, attorneys' fees and expenses) arising out of, or incurred by us, as
the result of a violation, breach or non-performance by you of any of the terms
of this Agreement.

          11. Governing Law. This Agreement shall be governed by and construed
              -------------
in accordance with the laws of the Commonwealth of Virginia, shall be binding
upon you and your successors and assigns, and shall inure to the benefit of the
Capital One and its successors and assigns.

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

          13. Facsimile Signatures. This Agreement may be executed and
              --------------------
delivered by facsimile. Any facsimile signatures shall have the same legal
effect as manual signatures.

          14. Term. This Agreement shall terminate on the date definitive
              ----
documentation is executed by you and any other appropriate parties in connection
with the Transaction.

                                      J-3
<PAGE>

     PLEASE ACKNOWLEDGE YOUR ACCEPTANCE OF THIS AGREEMENT, INCLUDING YOUR
AGREEMENT TO HOLD ALL MATTERS STRICTLY CONFIDENTIAL AS DISCUSSED HEREIN, BY
SIGNING IN THE SPACE PROVIDED BELOW.

                              Very truly yours,

                              CAPITAL ONE FINANCIAL CORPORATION

                              By: ____________________________

ACCEPTED AND AGREED TO AS OF THIS ___
DAY OF ____________, 1999

By:______________________

                                      J-4
<PAGE>

________________________________________________________________________________

                                  Appendix A
                        Rules of Usage and Definitions

________________________________________________________________________________

                                 Rules of Usage

     The following rules of usage shall apply to this Appendix A and the
Operative Agreements (and each appendix, schedule, exhibit and annex to the
foregoing) unless otherwise required by the context or unless otherwise defined
therein:

          (a) Except as otherwise expressly provided, any definitions set forth
     herein or in any other document shall be equally applicable to the singular
     and plural forms of the terms defined.

          (b) Except as otherwise expressly provided, references in any document
     to articles, sections, paragraphs, clauses, annexes, appendices, schedules
     or exhibits are references to articles, sections, paragraphs, clauses,
     annexes, appendices, schedules or exhibits in or to such document.

          (c) The headings, subheadings and table of contents used in any
     document are solely for convenience of reference and shall not constitute a
     part of any such document nor shall they affect the meaning, construction
     or effect of any provision thereof.

          (d) References to any Person shall include such Person, its successors
     and permitted assigns and transferees.

          (e) Except as otherwise expressly provided, reference to any agreement
     means such agreement as amended, modified, extended, supplemented, restated
     and/or replaced from time to time in accordance with the applicable
     provisions thereof.

          (f) Except as otherwise expressly provided, references to any law
     includes any amendment or modification to such law and any rules or
     regulations issued thereunder or any law enacted in substitution or
     replacement therefor.

          (g) When used in any document, words such as "hereunder", "hereto",
     "hereof" and "herein" and other words of like import shall, unless the
     context clearly indicates to the contrary, refer to the whole of the
     applicable document and not to any particular article, section, subsection,
     paragraph or clause thereof.

                                 Appendix - 1
<PAGE>

          (h) References to "including" means including without limiting the
     generality of any description preceding such term and for purposes hereof
     the rule of ejusdem generis shall not be applicable to limit a general
     statement, followed by or referable to an enumeration of specific matters,
     to matters similar to those specifically mentioned.

          (i) References herein to "attorney's fees", "legal fees", "costs of
     counsel" or other such references shall be deemed to include the allocated
     cost of in-house counsel.

          (j) Each of the parties to the Operative Agreements and their counsel
     have reviewed and revised, or requested revisions to, the Operative
     Agreements, and the usual rule of construction that any ambiguities are to
     be resolved against the drafting party shall be inapplicable in the
     construing and interpretation of the Operative Agreements and any
     amendments or exhibits thereto.

          (k) Capitalized terms used in any Operative Agreements which are not
     defined in this Appendix A but are defined in another Operative Agreement
                     ----------
     shall have the meaning so ascribed to such term in the applicable Operative
     Agreement.

                                  Definitions

     "ABR" shall mean, for any day, a rate per annum equal to the greater of (a)
the Prime Lending Rate in effect on such day, and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof:
"Prime Lending Rate" shall mean the rate which the Administrative Agent
 -------------------
announces from time to time as its prime lending rate as in effect from time to
time. The Prime Lending Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer. Any Lender
may make commercial loans or other loans at rates of interest at, above or below
the Prime Lending Rate. The Prime Lending Rate shall change automatically and
without notice from time to time as and when the prime lending rate of the
Administrative Agent changes. "Federal Funds Effective Rate" shall mean, for
                               ----------------------------
any period, a fluctuating interest rate per annum equal for each day during such
period to the weighted average of the rates on overnight Federal funds
transactions with members or the Federal Reserve System arranged by Federal
funds brokers, as published for such day (or, if such day is not a Business Day,
for the next preceding Business Day) by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the
average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it. Any change in the ABR due to a change in the Prime Lending Rate
or the Federal Funds Effective Rate shall be effective as of the opening of
business on the effective day of such change in the Prime Lending Rate or the
Federal Funds Effective Rate, respectively.

     "ABR Holder Funding" shall mean a Holder Funding bearing a Holder Yield
based on the ABR.

                                 Appendix - 2
<PAGE>

     "ABR Loans" shall mean Loans the rate of interest applicable to which is
based upon the ABR.

     "Acceleration" shall have the meaning given to such term in Section 6 of
the Credit Agreement.

     "acquire" or "purchase" shall mean, with respect to any Property, the
acquisition or purchase of such Property by the Lessor from any Person.

     "Acquisition Advance" shall have the meaning given to such term in Section
5.3 of the Participation Agreement.

     "Administration Fee" shall mean a construction administration fee payable
to the Agent pursuant to Section 9.5 of the Participation Agreement.

     "Advance" shall mean a Construction Advance or an Acquisition Advance.

     "Affiliate" shall mean, with respect to any Person, any Person or group
acting in concert in respect of the Person in question that, directly or
indirectly, controls or is controlled by or is under common control with such
Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlled by" and "under common control with")
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of management and policies of a Person, whether through the
ownership of voting securities or by contract or otherwise.

     "After Tax Basis" shall mean, with respect to any payment to be received,
the amount of such payment increased so that, after deduction of the amount of
all taxes required to be paid by the recipient calculated at the then maximum
marginal rates generally applicable to Persons of the same type as the
recipients (less any tax savings realized as a result of the payment of the
indemnified amount) with respect to the receipt by the recipient of such
amounts, such increased payment (as so reduced) is equal to the payment
otherwise required to be made.

     "Agency Agreement" shall mean the Agency Agreement (Capital One Realty,
Inc.) dated as of the Initial Closing Date between the Construction Agent and
the Lessor.

     "Agency Agreement Event of Default" shall mean an "Event of Default" as
defined in Section 5.1 of the Agency Agreement.

     "Agent" or "Administrative Agent" shall mean Bank of America, N.A., as
Administrative Agent for the Lenders pursuant to the Credit Agreement, or any
successor agent appointed in accordance with the terms of the Credit Agreement
and respecting the Security Documents, for the Lenders and the Holders, to the
extent of their interests.

     "Applicable Percentage" shall mean with respect to the applicable Level
Status, the applicable rate per annum set forth opposite such Level Status:

                                 appendix - 3
<PAGE>

<TABLE>
<CAPTION>
================================================================================
                        Applicable Percentage       Applicable Percentage
   Level Status                for                        for
                          Eurodollar Loans            Facility Fee
<S>                      <C>                         <C>
-------------------------------------------------------------------------------
Level I Status                   .375%                     .125%
-------------------------------------------------------------------------------
Level II Status                   .55%                      .15%
-------------------------------------------------------------------------------
Level III Status                 .675%                     .175%
-------------------------------------------------------------------------------
Level IV Status                  1.10%                       .25%
-------------------------------------------------------------------------------
Level V Status                   1.725%                     .375%
================================================================================
</TABLE>

Changes in the Applicable Percentage resulting from changes in the Debt Rating
shall become effective on the date on which such Debt Rating is announced to the
public by S&P, Moody's or Fitch, as applicable, and shall remain in effect until
the next change in such Debt Rating; provided, that, until the effectiveness of
                                     --------
any change in the Applicable Percentage based upon a Debt Rating announced after
the Initial Closing Date, Level II Status shall apply.

     "Appraisal" shall mean, with respect to any Property, an appraisal to be
delivered in connection with the Participation Agreement or in accordance with
the terms of the Lease, in each case prepared by a reputable appraiser
reasonably acceptable to the Agent, which in the judgment of counsel to the
Agent, complies with all of the provisions of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as amended, the rules and regulations
adopted pursuant thereto, and all other applicable Legal Requirements.

     "Appraisal Procedure" shall have the meaning given such term in Section
22.4 of the Lease.

     "Approved State" means Florida, Washington and any other state within the
continental United States proposed by the Lessee and consented to in writing by
the Agent.

     "Appurtenant Rights" shall mean (i) all agreements, easements, rights of
way or use, rights of ingress or egress, privileges, appurtenances, tenements,
hereditaments and other rights and benefits at any time belonging or pertaining
to the Land underlying the Improvements or the Improvements, including, without
limitation, the use of any streets, ways, alleys, vaults or strips of land
adjoining, abutting, adjacent or contiguous to the Land and (ii) all permits,
licenses and rights, whether or not of record, appurtenant to such Land or the
Improvements.

     "Assignment and Acceptance" shall mean the Assignment and Acceptance in the
form attached to the Credit Agreement as Exhibit B.
                                         ---------

     "Available Commitment" shall mean, as to any Lender at any time, an amount
equal to the excess, if any, of (a) the amount of such Lender's Commitment over
(b) the aggregate principal

                                 Appendix - 4
<PAGE>

amount of all Loans made by such Lender as of such date after giving effect to
any repayments pursuant to Section 5.2(d) of the Participation Agreement (but
without giving effect to any other repayments or prepayments of any Loans
hereunder).

     "Available Holder Commitments" shall mean an amount equal to the excess, if
any, of (i) the amount of the Holder Commitments over (ii) the aggregate amount
of the Holder Fundings made since the Initial Closing Date after giving effect
to any repayments pursuant to Section 5.2(d) of the Participation Agreement (but
without giving effect to any other repayments or prepayments of any Holder
Fundings).

     "Bankruptcy Code" shall mean Title 11 of the U. S. Code entitled
"Bankruptcy," as now or hereafter in effect or any successor thereto.

     "Basic Rent" shall mean, the sum of (i) the Loan Basic Rent and (ii) the
Lessor Basic Rent, calculated as of the applicable date on which Basic Rent is
due.

     "Basic Term" shall have the meaning specified in Section 2.2 of the Lease.

     "Basic Term Commencement Date" shall have the meaning specified in the
recitals to of the Lease.

     "Basic Term Expiration Date" shall have the meaning specified in Section
2.2 of the Lease.

     "Bill of Sale" shall mean a Bill of Sale regarding Equipment in form and
substance satisfactory to the Holders, the Agent and the Owner Trustee.

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

     "Borrowing Date" shall mean any Business Day specified in a notice
delivered pursuant to Section 2.3 of the Credit Agreement as a date on which the
Lessor requests the Lenders to make Loans hereunder.

     "Budgeted Total Loan Property Cost" shall mean, at any date of
determination with respect to any Construction Period Property, an amount equal
to the aggregate amount which the Construction Agent in good faith expects to be
expended in order to achieve Completion with respect to such Property, including
interest on Loans and yield on Holder Fundings through the Basic Term
Commencement Date respecting such Construction Period Property.

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

                                 Appendix - 5
<PAGE>

     "Capital One Bank" shall mean Capital One Bank, a Virginia banking
corporation, and its successors and permitted assigns.

     "Capital One Credit Agreement" shall have the meaning given such term in
Section 28.1 of the Lease.

     "Capital One Credit Agreement Event of Default" shall mean an Event of
Default as defined in Section 9 of the Capital One Credit Agreement,

     "Capitalized Lease" shall mean, as applied to any Person, any lease of
property (whether real, personal, tangible, intangible or mixed of such Person)
by such Person as lessee which would be capitalized on a balance sheet of such
Person prepared in accordance with GAAP.

     "Casualty" shall mean any damage or destruction of all or any portion of
the Property as a result of a fire or other casualty.

     "CERCLA" shall mean the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, 42 U.S.C. (S)(S) 9601 et seq., as amended by the
Superfund Amendments and Reauthorization Act of 1986.

     "Certificate" shall mean a Certificate (Capital One Realty, Inc.) in favor
of each Holder regarding the Holder Commitment of such Holder issued pursuant to
the terms and conditions of the Trust Agreement in favor of each Holder.

     "Claims" shall mean any and all obligations, liabilities, losses, actions,
suits, penalties, claims, demands, costs and expenses (including, without
limitation, reasonable attorney's fees and expenses) of any nature whatsoever.

     "Closing Date" shall mean the Initial Closing Date and each Property
Closing Date.

     "Capital One Realty Trust 1998-1" shall mean the grantor trust created
pursuant to the terms and conditions of the Trust Agreement.

     "Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time, or any successor statute hereto.

     "COFC" shall mean Capital One Financial Corporation, a Delaware
corporation, and its successors and assigns.

     "Collateral" shall mean all assets of the Lessor, now owned or hereafter
acquired, upon which a lien is purported to be created by the Security
Documents.

     "Commitment" shall mean, as to any Lender, the obligation of such Lender to
make the portion of the Loans to the Lessor in an aggregate principal amount at
any time outstanding not to exceed the amount set forth opposite such Lender's
name on Schedule 1.1 of the Credit Agreement,

                                 Appendix - 6
<PAGE>

as such amount may be increased or reduced from time to time in accordance with
the provisions of the Credit Agreement.

     "Commitment Percentage" shall mean, as to any Lender at any time, the
percentage which such Lender's Commitment then constitutes of the aggregate
Commitments (or, at any time after the Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such Lender's
Loans then outstanding constitutes of the aggregate principal amount of all of
the Loans then outstanding), and such Commitment Percentage shall take into
account both the Lender's Tranche A Commitment and the Lender's Tranche B
Commitment.

     "Commitment Period" shall mean the period from and including the Initial
Closing Date to and including the Construction Period Termination Date, or such
earlier date as the Commitments shall terminate as provided in the Credit
Agreement.

     "Company Obligations" shall mean the obligations of CORI, in any and all
capacities under and with respect to the Operative Agreements and each Property.

     "Completion" shall mean, with respect to a Property, such time as
substantial completion of the Improvements on such Property has been achieved in
accordance with the Plans and Specifications, the Agency Agreement and/or the
Lease, and in compliance with all material Legal Requirements and Insurance
Requirements and a certificate of occupancy has been issued with respect to such
Property by the appropriate governmental entity. If the Lessor purchases a
Property that includes existing Improvements that are to be immediately occupied
by the Lessee, the date of Completion for such Property shall be the Property
Closing Date.

     "Completion Date" shall mean, with respect to a Property, the date on which
Completion for such Property has occurred.

     "Condemnation" shall mean any taking or sale of the use, access, occupancy,
easement rights or title to any Property or any part thereof, wholly or
partially (temporarily or permanently), by or on account of any actual or
threatened eminent domain proceeding or other taking of action by any Person
having the power of eminent domain, including an action by a Governmental
Authority to change the grade of, or widen the streets adjacent to, any Property
or alter the pedestrian or vehicular traffic flow to any Property so as to
result in a change in access to such Property, or by or on account of an
eviction by paramount title or any transfer made in lieu of any such proceeding
or action.

     "Contractor" shall mean each entity with whom the Construction Agent or the
Lessee contracts to construct any Improvements or any portion thereof on the
Property.

     "Construction Advance" shall mean an advance of funds to pay Property Costs
pursuant to Section 5.4 of the Participation Agreement.

     "Construction Agent" shall mean Capital One Realty, Inc., a Delaware
corporation, as construction agent under the Agency Agreement.

                                 Appendix - 7
<PAGE>

     "Construction Agent Options" shall have the meaning given to such term in
Section 2.1(c) of the Agency Agreement.

     "Construction Budget" shall mean the cost of constructing and developing
any Improvements as determined by the Construction Agent in its reasonable, good
faith judgment.

     "Construction Commencement Date" shall mean, with respect to Improvements,
the date on which construction of such Improvements commences pursuant to the
Agency Agreement.

     "Construction Contract" shall mean any contract entered into between the
Construction Agent or the Lessee with a Contractor for the construction of
Improvements or any portion thereof on the Property.

     "Construction Loan" shall mean any Loan made in connection with a
Construction Advance, including Loans to pay interest thereon.

     "Construction Loan Property Cost" shall mean with respect to each
Construction Period Property at the date of determination, an amount equal to
(a) the aggregate principal amount of Construction Loans made on or prior to
such date with respect to the Property minus (b) the aggregate principal amount
                                       -----
of prepayments or repayments of the Loans allocated to reduce the Construction
Loan Property Cost of such Property pursuant to Section 2.6(c) of the Credit
Agreement.

     "Construction Period" shall mean, with respect to a Property, the period
commencing on the Construction Commencement Date for such Property and ending on
the Completion Date for such Property.

     "Construction Period Property" means, at any date of determination, any
Property as to which the Basic Term has not commenced on or prior to such date.

     "Construction Period Termination Date" shall mean the earlier of (i) the
date that the Commitments have been terminated in their entirety in accordance
with the terms of Section 2.5(a) of the Credit Agreement, or (ii) the third
anniversary of the Initial Closing Date.

     "Contingent Obligation" shall mean, as applied to any Person, any
agreement, undertaking or arrangement by which such Person assumes, guarantees,
endorses, contingently agrees to purchase or provide funds for the payment of,
or otherwise becomes or is contingently liable upon, the obligation or liability
of any other Person or agrees to maintain the net worth or working capital or
other financial condition of any other Person, or otherwise assures any creditor
of such other Person against loss, including, without limitation, any comfort
letter, operating agreement, take-or-pay contract or application for a letter of
credit (or similar instrument which is issued upon the application of such
Person or upon which such Person becomes an account party or for which such
Person is in any way liable), but excluding the endorsement of instruments for
deposit or collection in the ordinary course of business.

                                 Appendix - 8
<PAGE>

     "Control" shall mean (including the correlative meanings of the terms
"controlled by" and "under common control with"), as used with respect to any
Person, the possession directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through the
ownership of voting securities or by contract or otherwise.

     "Co-Owner Trustee" shall have the meaning specified in Section 9.2 of the
Trust Agreement.

     "CORI" shall mean Capital One Realty, Inc., a Delaware corporation, and its
successors and permitted assigns.

     "CORI Participation Agreement" shall have the meaning given to such term in
Section 1.1 of the Trust Agreement.

     "CORI Trust Estate" shall have the meaning given to such term in Section
2.2 of the Trust Agreement.

     "COSI" shall mean Capital One Services, Inc., a Delaware corporation, and
its successors and permitted assigns.

     "COSI Participation Agreement" shall have the meaning given to such term in
Section 1.1 of the Trust Agreement.

     "COSI Trust Estate" shall have the meaning given to such term in Section
2.2 of the Trust Agreement.

     "Credit Agreement" shall mean the Credit Agreement (Capital One Realty,
Inc.), dated as of the Initial Closing Date, among the Lessor, the Agent and the
Lenders, as specified therein.

     "Credit Agreement Default" shall mean any event or condition which, with
the lapse of time or the giving of notice, or both, would constitute a Credit
Agreement Event of Default.

     "Credit Agreement Event of Default" shall mean any event or condition
defined as an "Event of Default" in Section 6 of the Credit Agreement.

     "Credit Documents" shall mean the Credit Agreement, the Notes and the
Security Documents.

     "Credit Parties" shall mean the Lessee and the Guarantor.

     "Debt Rating" shall mean, as of any date of determination thereof, the
ratings most recently published by the Rating Agencies relating to the
unsecured, unsupported senior long-term debt obligations of the Guarantor.

                                 Appendix - 9
<PAGE>

     "Deed" shall mean a warranty deed regarding the Land and/or Improvements in
form and substance satisfactory to the Holders, the Agent and the Owner Trustee.

     "Default" shall mean any event, act or condition which with notice or lapse
of time, or both, would constitute an Event of Default.

     "Defaulting Lender" shall have the meaning given to such term in Section
9.1 of the Credit Agreement.

     "Dollars" and "$" shall mean dollars in lawful currency of the United
States of America.

     "Election Notice" shall have the meaning given to such term in Section 20.1
of the Lease.

     "Employee Benefit Plan" or "Plan" shall mean an employee benefit plan
(within the meaning of Section 3(3) of ERISA, including any Multiemployer Plan),
or any "plan" as defined in Section 4975(e)(1) of the Code and as interpreted by
the Internal Revenue Service and the Department of Labor in rules, regulations,
releases or bulletins in effect on any Closing Date.

     "Environmental Claims" shall mean any investigation, notice, violation,
demand, allegation, action, suit, injunction, judgment, order, consent decree,
penalty, fine, lien, proceeding, or claim (whether administrative, judicial, or
private in nature) arising (a) pursuant to, or in connection with, an actual or
alleged violation of, any Environmental Law, (b) in connection with any
Hazardous Substance, (c) from any abatement, removal, remedial, corrective, or
other response action in connection with a Hazardous Substance, Environmental
Law, or other order of a Tribunal or (d) from any actual or alleged damage,
injury, threat, or harm to health, safety, natural resources, or the
environment.

     "Environmental Laws" shall mean any Law, permit, consent, approval,
license, award, or other authorization or requirement of any Tribunal relating
to emissions, discharges, releases, threatened releases of any Hazardous
Substance into ambient air, surface water, ground water, publicly owned
treatment works, septic system, or land, or otherwise relating to the handling,
storage, treatment, generation, use, or disposal of Hazardous Substances,
pollution or to the protection of health or the environment, including without
limitation CERCLA, the Resource Conservation and Recovery Act, 42 U.S.C. (S)
6901, et seq., and state statutes analogous thereto.

     "Environmental Violation" shall mean any activity, occurrence or condition
that violates or threatens (if the threat requires remediation under any
Environmental Law and is not remediated during any grace period allowed under
such Environmental Law) to violate or results in or threatens (if the threat
requires remediation under any Environmental Law and is not remediated during
any grace period allowed under such Environmental Law) to result in
noncompliance with any Environmental Law.

     "Equipment" shall mean equipment, apparatus, furnishings, fittings and
personal property of every kind and nature whatsoever purchased, leased or
otherwise acquired using the proceeds of the Loans or the Holder Fundings by the
Construction Agent, the Lessee or the Lessor as specified

                                 Appendix -10
<PAGE>

or described in either a requisition or a Lease Supplement, whether or not now
or subsequently attached to, contained in or used or usable in any way in
connection with any operation of any Improvements or other improvements to real
property, including but without limiting the generality of the foregoing, all
equipment described in the Appraisal including, without limitation, all heating,
electrical, and mechanical equipment, lighting, switchboards, plumbing,
ventilation, air conditioning and air-cooling apparatus, refrigerating, and
incinerating equipment, escalators, elevators, loading and unloading equipment
and systems, cleaning systems (including window cleaning apparatus), telephones,
communication systems (including satellite dishes and antennae), televisions,
computers, sprinkler systems and other fire prevention and extinguishing
apparatus and materials, security systems, motors, engines, machinery, pipes,
pumps, tanks, conduits, appliances, fittings and fixtures of every kind and
description.

     "Equipment Schedule" shall mean (a) each Equipment Schedule attached to the
applicable Requisition and (b) each Equipment Schedule attached to the
applicable Lease Supplement.

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" shall mean each entity required to be aggregated with the
Construction Agent or any Credit Party pursuant to the requirements of Section
414(b) or (c) of the Code.

     "Eurocurrency Reserve Requirements" shall mean for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the maximum rates
(expressed as a decimal fraction) of reserve requirements in effect on such day
(including, without limitation, basic, supplemental, marginal and emergency
reserves under any regulations of the Board or other Governmental Authority
having jurisdiction with respect thereto) dealing with reserve requirements
prescribed or eurocurrency funding (currently referred to as "Eurocurrency
liabilities" in Regulation D) maintained by a member bank of the Federal Reserve
System.

     "Eurodollar Holder Funding" shall mean a Holder Funding bearing a Holder
Yield based on the Eurodollar Rate.

     "Eurodollar Loans" shall mean Loans the rate of interest applicable to
which is based upon the Eurodollar Rate.

     "Eurodollar Rate" shall mean for the Interest Period for each Eurodollar
Loan or Eurodollar Holder Funding comprising part of the same borrowing or
advance (including conversions, extensions and renewals), a per annum interest
rate equal to the per annum rate determined by the Administrative Agent on the
basis of the offered rates for deposits in dollars for a period of time
corresponding to such Interest Period (and commencing on the first day of such
Interest Period), which appear on the Reuters Screen LIBO Page as of 11:00 a.m.
(London time) two (2) Business Days before the first day of such Interest Period
(provided that, if at least two such offered rates appear on the Reuters Screen
 --------
LIBO Page, the rate in respect of such Interest Period will be the arithmetic
mean of such offered rates).  As used herein, "Reuters Screen LIBO Page" means
the display designated as page "LIBO" on the Reuters Monitor Money Rates Service
(or such other page as may replace the LIBO page on that service for the purpose
of displaying London interbank

                                 Appendix - 11
<PAGE>

offered rates of major banks) ("RMMRS"). In the event the RMMRS is not then
quoting such offered rates, "Eurodollar Rate" shall mean for the Interest Period
for each Eurodollar Loan or Eurodollar Holder Funding comprising part of the
same borrowing or advance (including conversions, extensions and renewals), the
average (rounded upward to the nearest one-sixteenth (1/16) of one percent) per
annum rate of interest determined by the office of the Administrative Agent
(each such determination to be conclusive and binding) as of two Business Days
prior to the first day of such Interest Period, as the effective rate at which
deposits in immediately available funds in U.S. dollars are being, have been, or
would be offered or quoted by the Administrative Agent to major banks in the
applicable interbank market for Eurodollar deposits at any time during the
Business Day which is the second Business Day immediately preceding the first
day of such Interest Period, for a term comparable to such Interest Period and
in the amount of the requested Eurodollar Loan and Eurodollar Holder Funding. If
no such offers or quotes are generally available for such amount, then the
Administrative Agent shall be entitled to determine the Eurodollar Rate by
estimating in its reasonable judgment the per annum rate (as described above)
that would be applicable if such quote or offers were generally available.

     "Event of Default" shall mean a Lease Event of Default, an Agency Agreement
Event of Default or a Credit Agreement Event of Default.

     "Excepted Payments" shall mean: (a) all indemnity payments (including
indemnity payments made pursuant to Section 13 of the Participation Agreement),
whether made by adjustment to Basic Rent or otherwise, to which the Owner
Trustee, any Holder or any of their respective Affiliates, agents, officers,
directors or employees is entitled;

     (b) any amounts (other than Basic Rent or Termination Value) payable under
any Operative Agreement to reimburse the Owner Trustee, any Holder or any of
their respective Affiliates (including the reasonable expenses of the Owner
Trustee, the Trust Company and the Holders incurred in connection with any such
payment) for performing or complying with any of the obligations of any Credit
Party under and as permitted by any Operative Agreement;

     (c) any amount payable to a Holder by any transferee of such interest of a
Holder as the purchase price of such Holder's interest in the CORI Trust Estate
(or a portion thereof);

     (d) any insurance proceeds (or payments with respect to risks self-insured
or policy deductibles) under liability policies other than such proceeds or
payments payable to the Agent or any Lender;

     (e) any insurance proceeds under policies maintained by the Owner Trustee
or any Holder;

     (f) Transaction Expenses or other amounts or expenses paid or payable to or
for the benefit of the Owner Trustee or any Holder;

                                 Appendix - 12
<PAGE>

     (g) all right, title and interest of any Holder or the Owner Trustee to any
Property or any portion thereof or any other property to the extent any of the
foregoing has been released from the Liens of the Security Documents and the
Lease pursuant to the terms thereof;

     (h) upon termination of the Credit Agreement pursuant to the terms thereof,
all remaining property covered by the Lease or Security Documents;

     (i) all payments in respect of the Holder Yield;

     (j) any payments in respect of interest to the extent attributable to
payments referred to in clauses (a) through (i) above; and

     (k) any rights of either the Owner Trustee or Trust Company to demand,
collect, sue for or otherwise receive and enforce payment of any of the
foregoing amounts, provided that such rights shall not include the right to
terminate the Lease.

     "Excepted Rights" shall mean the rights retained by the Owner Trustee
pursuant to Section 8.2(a)(i) of the Credit Agreement.

     "Excess Proceeds" shall mean the excess, if any, of the aggregate of all
awards, compensation or insurance proceeds payable in connection with a Casualty
or Condemnation over the Termination Value paid by the Lessee pursuant to the
Lease with respect to such Casualty or Condemnation.

     "Exculpated Persons" shall have the meaning given to such term in Section
14.10 of the Participation Agreement.

     "Expiration Date" shall mean the later of (i) the Basic Term Expiration
Date and (ii) the last day of any Renewal Term.

     "Expiration Date Purchase Option" shall mean the Lessee's option to
purchase all (but not less than all) of the Properties on the Expiration Date.

     "Facility" shall mean a facility used for the treatment, storage or
disposal of Hazardous Substances.

     "Facility Fee" shall mean that fee payable by the Lessee pursuant to
Section 9.4 of the Participation Agreement.

     "Facility Fee Payment Date" shall mean the 15th day of each January, April,
July and October of each year and the last day of the Term.

     "Fair Market Sales Value" shall mean, with respect to any Property, the
amount, which in any event, shall not be less than zero, that would be paid in
cash in an arms-length transaction between an informed and willing purchaser and
an informed and willing seller, neither of whom is

                                 Appendix - 13
<PAGE>

under any compulsion to purchase or sell, respectively, such Property. Fair
Market Sales Value of any Property shall be determined based on the assumption
that, except for purposes of Section 17 of the Lease, such Property is in the
condition and state of repair required under Section 10.1 of the Lease and each
Credit Party is in compliance with the other requirements of the Operative
Agreements.

     "Federal Funds Effective Rate" shall have the meaning given to such term in
the definition of ABR.

     "Financing Parties" shall mean the Lessor, the Owner Trustee, in its trust
capacity, the Agent, the Holders and the Lenders.

     "Fitch" shall mean Fitch Investors Service, Inc.

     "Fixtures" shall mean all fixtures relating to the Improvements, including
all components thereof, located in or on the Improvements, together with all
replacements, modifications, alterations and additions thereto.

     "Force Majeure Event" shall mean any event beyond the control of the
Construction Agent, other than a Casualty or Condemnation, including, but not
limited to, strikes or lockouts (but only when the Construction Agent is legally
prevented from securing replacement labor or materials as a result thereof),
adverse soil conditions, acts of God, adverse weather conditions, inability to
obtain labor or materials, governmental activities or regulations, civil
commotion and enemy action; but excluding any event, cause or condition that
results from the Construction Agent's financial condition.

     "Future Amounts" shall have the meaning given to such term in Section 2.1
of the Agency Agreement.

     "GAAP" shall mean generally accepted accounting principles set forth in the
opinions and pronouncements of the accounting principles board of the American
Institute of Certified Public Accountants, and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession, that are applicable to the circumstances as of the date of
determination.

     "Governmental Action" shall mean all permits, authorizations,
registrations, consents, approvals, waivers, exceptions, variances, orders,
judgments, written interpretations, decrees, licenses, exemptions, publications,
filings, notices to and declarations of or with, or required by, any
Governmental Authority, or required by any Legal Requirement, and shall include,
without limitation, all environmental and operating permits and licenses that
are required for the full use, occupancy, zoning and operating of the Property.

     "Governmental Authority" shall mean any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.
                                 Appendix - 14
<PAGE>

     "Ground Lease" shall mean a ground lease (in form and substance
satisfactory to the Agent and the Holder) respecting any Property owned by the
Lessee and leased to the Lessor where such lease (i) has a 99 year term and
payments set at $1.00 per year, or (ii) is subject to such other terms and
conditions as are satisfactory to the Agent, the Lenders and the Holders.

     "Guarantor" shall mean Capital One Bank, a Virginia banking corporation.

     "Hard Costs" shall mean all costs and expenses payable for supplies,
materials, labor and profit with respect to the Improvements under any
Construction Contract.

     "Hazardous Substance" shall mean any of the following:  (i) any petroleum
or petroleum product, explosives, radioactive materials, asbestos, formaldehyde,
polychlorinated biphenyls, lead and radon gas; (ii) any substance, material,
product, derivative, compound or mixture, mineral, chemical, waste, gas, medical
waste, or pollutant, in each case whether naturally occurring, man-made or the
by-product of any process, that is toxic, harmful or hazardous to the
environment or human health or safety as determined in accordance with any
Environmental Law; or (iii) any substance, material, product, derivative,
compound or mixture, mineral, chemical, waste, gas, medical waste or pollutant
that would support the assertion of any claim under any Environmental Law,
whether or not defined as hazardous as such under any Environmental Law.

     "Holder Funding" shall mean any advance made by any Holder to the Owner
Trustee pursuant to the terms of the Trust Agreement (solely as it relates to
the CORI Trust Estate) or the Participation Agreement.

     "Holder Amount" shall mean as of any date, the aggregate amount of Holder
Fundings made by each Holder to the CORI Trust Estate pursuant to Section 2 of
the Participation Agreement and Section 3.1 of the Trust Agreement less any
payments of any Holder Fundings received by the Holders pursuant to Section 3.4
of the Trust Agreement.

     "Holder Applicable Margin" shall mean (i) with respect to Eurodollar Holder
Fundings, the Applicable Percentage for Eurodollar Loans of the same Interest
Period as such Eurodollar Holder Funding, plus one percent (1.00%), or (ii) with
respect to ABR Holder Fundings, a percentage equal to the ABR plus one percent
(1.00%).

     "Holder Commitments" shall mean $3,450,000 respecting the CORI Trust
Estate, provided, that the Holder Commitment of each Holder shall be as set
forth on the Holder Certificate issued in favor of such Holder pursuant to the
Trust Agreement.

     "Holder Construction Property Cost" shall mean, with respect to each
Construction Period Property for which the Basic Term has not commenced, at any
date of determination, an amount equal to the outstanding Holder Fundings made
with respect thereto under the Trust Agreement.

     "Holder Overdue Rate" shall mean the lesser of (i) the ABR plus two percent
(2%) and (ii) the highest rate permitted by applicable law.

                                 Appendix - 15
<PAGE>

     "Holder Property Cost" shall mean with respect to a Property an amount
equal to the outstanding Holder Fundings with respect thereto.

     "Holders" shall mean Bank of America, N.A. and shall include the other
banks and other financial institutions which are from time to time holders of
Certificates in connection with the Capital One Realty Trust 1998-1.

     "Holder Yield" shall mean with respect to Holder Fundings from time to time
either the Eurodollar Rate plus the Holder Applicable Margin or the ABR as
elected by the Owner Trustee from time to time with respect to such Holder
Fundings in accordance with the terms of the Trust Agreement; provided, however,
(i) upon delivery of the notice described in Section 3.7(c) of the Trust
Agreement, the outstanding Holder Fundings of each Holder shall bear a yield at
the ABR applicable from time to time from and after the dates and during the
periods specified in Section 3.7(c) of the Trust Agreement, and (ii) upon the
delivery by a Holder of the notice described in Section 3.9(d) of the Trust
Agreement, the Holder Fundings of such Holder shall bear a yield at the ABR
applicable from time to time after the dates and during the periods specified in
Section 3.9(d) of the Trust Agreement.

     "Impositions" shall mean any and all liabilities, losses, expenses, costs,
charges and Liens of any kind whatsoever for fees, taxes, levies, imposts,
duties, charges, assessments or foreign withholdings ("Taxes") and all interest,
additions to tax and penalties thereon, which at any time prior to, during or
with respect to the Term or in respect of any period for which the Lessee shall
be obligated to pay Supplemental Rent, may be levied, assessed or imposed by any
Governmental Authority upon or with respect to (a) any Property or the leasing,
financing, refinancing, demolition, construction, substitution, subleasing,
assignment, control, condition, occupancy, servicing, maintenance, repair,
ownership, possession, activity conducted on, delivery, insuring, use,
operation, improvement, sale, transfer of title, return or other disposition of
such Property or any part thereof or interest therein or any rentals, receipts
or earnings arising therefrom; (b) the Notes or Certificates or any part thereof
or interest therein; or (c) the Operative Agreements, the performance thereof,
or any payment made or accrued pursuant thereto or otherwise in connection with
the transactions contemplated thereby.

     "Improvements" shall mean, with respect to the construction, renovations
and/or Modifications on any Land, all buildings, structures, Fixtures, and other
improvements of every kind existing at any time and from time to time on or
under the Land purchased, leased or otherwise acquired using the proceeds of the
Loans or the Holder Fundings, together with any and all appurtenances to such
buildings, structures or improvements, including sidewalks, utility pipes,
conduits and lines, parking areas and roadways, and including all Modifications
and other additions to or changes in the Improvements at any time, including
without limitation (a) any Improvements existing as of the Property Closing Date
as such Improvements may be referenced on the applicable Requisition and (b) any
Improvements made subsequent to such Property Closing Date.

     "Incorporated Covenants" shall have the meaning given to such term in
Section 28.1 of the Lease.

                                 Appendix - 16
<PAGE>

     "Incorporated Representations and Warranties" shall have the meaning given
to such term in Section 28.1 of the Lease.

     "Indebtedness" of a Person shall mean, without duplication, such Person's:

          (i)  obligations for borrowed money;

          (ii)  obligations representing the deferred purchase price of Property
     (whether real, personal, tangible, intangible or mixed) or services (other
     than accounts payable arising in the ordinary course of such Person's
     business payable on terms customary in the trade);

          (iii) obligations, whether or not assumed, secured by liens or payable
     out of the proceeds or production from property now or hereafter owned or
     acquired by such Person;

          (iv)  obligations which are evidenced by notes, acceptances or other
     instruments;

          (v)  Capitalized Lease Obligations;

          (vi) net liabilities under interest rate swap, exchange or cap
     agreements; and

          (vii)  contingent obligations.

     "Indemnified Person" shall mean the Lessor, the Owner Trustee, in its
individual and its trust capacity, the Agent, the Holders, the Lenders, and
their respective successors, assigns, directors, shareholders, partners,
officers, employees, agents and Affiliates.

     "Indemnity Provider" shall mean, respecting each Property, the Lessee.

     "Individual Property Sale Requirements" shall have the meaning given to
such term in Section 20.1 of the Lease.

     "Initial Closing Date" shall mean September 3, 1999.

     "Initial Construction Advance" shall mean any initial Advance to pay for:
(i) Property Costs for construction of any Improvements; and (ii) the Property
Costs of restoring or repairing any Property which is required to be restored or
repaired in accordance with Section 15.1(e) of the Lease.

     "Inspector" shall mean any Person engaged by the Agent to oversee the
monitoring of the progress of any Improvements and reviewing of Requisitions and
to provide related services relating to administration of such Improvements
during the Construction Period.

     "Insurance Requirements" shall mean all terms and conditions of any
insurance policy either required by the Lease to be maintained by the Lessee or
required by the Agency Agreement

                                 Appendix - 17
<PAGE>

to be maintained by the Construction Agent, and all requirements of the issuer
of any such policy and, regarding self insurance, any other requirements of
Lessee.

     "Interest Period" shall mean during the Commitment Period and thereafter as
to any Eurodollar Loan or Eurodollar Holder Funding (i) with respect to the
initial Interest Period, the period beginning on the date of the first
Eurodollar Loan and Eurodollar Holder Funding and ending one (1) month, two (2)
months, three (3) months or (to the extent available to all Lenders and all
Holders) six (6) months thereafter, as selected by the Lessor (in the case of a
Eurodollar Loan) or the Owner Trustee (in the case of a Eurodollar Holder
Funding) in its applicable notice given with respect thereto and (ii)
thereafter, each period commencing on the last day of the next preceding
Interest Period applicable to such Eurodollar Loan or Eurodollar Holder Funding
and ending one (1) month, two (2) months, three (3) months or (to the extent
available to all Lenders and all Holders) six (6) months thereafter, as selected
by the Lessor by irrevocable notice to the Agent (in the case of a Eurodollar
Loan) or by the Owner Trustee (in the case of a Eurodollar Holder Funding) in
each case not less than three (3) Business Days prior to the last day of the
then current Interest Period with respect thereto; provided, however, that all
                                                   --------  -------
of the foregoing provisions relating to Interest Periods are subject to the
following: (A) if any Interest Period would end on a day which is not a Business
Day, such Interest Period shall be extended to the next succeeding Business Day
(except that where the next succeeding Business Day falls in the next succeeding
calendar month, then on the next preceding Business Day), (B) no Interest Period
shall extend beyond the Maturity Date or the Expiration Date, as the case may
be, (C) where an Interest Period begins on a day for which there is no
numerically corresponding day in the calendar month in which the Interest Period
is to end, such Interest Period shall end on the last Business Day of such
calendar month, (D) there shall not be more than four (4) Interest Periods
outstanding at any one (1) time.

     "Investment Company Act" shall mean the Investment Company Act of 1940, as
amended, together with the rules and regulations promulgated thereunder.

     "IRS" shall mean the United States Internal Revenue Service, or any
successor or analogous organization.

     "Land" shall mean a parcel of real property described on (a) the
Requisition issued by the Construction Agent on the Property Closing Date
relating to such parcel and (b) the schedules to each applicable Lease
Supplement executed and delivered in accordance with the requirements of Section
2.4 of the Lease.

     "Law" shall mean any statute, law, ordinance, regulation, rule, directive,
order, writ, injunction or decree of any Tribunal.

     "Lease" or "Lease Agreement" shall mean the Lease Agreement (Capital One
Realty, Inc.) (Tax Retention Operating Lease) dated as of the Initial Closing
Date, between the Lessor and the Lessee, together with any Lease Supplements
thereto, as such Lease Agreement may from time to time be supplemented, amended
or modified in accordance with the terms thereof.

                                 Appendix - 18
<PAGE>

     "Lease Default" shall mean any event or condition which, with the lapse of
time or the giving of notice, or both, would constitute a Lease Event of
Default.

     "Lease Event of Default" shall have the meaning specified in Section 17.1
of the Lease.

     "Lease Supplement" shall mean each Lease Supplement substantially in the
form of Exhibit A to the Lease, together with all attachments and schedules
thereto, as such Lease Supplement may be supplemented, amended or modified from
time to time.

     "Legal Requirements" shall mean all foreign, federal, state, county,
municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions affecting the Owner Trustee, the
Holders, the Lessor, any Credit Party, the Agent, any Lender or any Property,
Land, Improvement, Equipment or the taxation, demolition, construction, use or
alteration of such Improvements, whether now or hereafter enacted and in force,
including any that require repairs, modifications or alterations in or to any
Property or in any way limit the use and enjoyment thereof (including all
building, zoning and fire codes and the Americans with Disabilities Act of 1990,
42 U.S.C. (S) 12101 et. seq., and any other similar federal, state or local laws
or ordinances and the regulations promulgated thereunder) and any that may
relate to environmental requirements (including all Environmental Laws), and all
permits, certificates of occupancy, licenses, authorizations and regulations
relating thereto, and all covenants, agreements, restrictions and encumbrances
contained in any instruments which are either of record or known to any Credit
Party affecting any Property or the Appurtenant Rights.

     "Lender Commitments" shall mean $86,550,000 as such amount may be increased
or reduced from time to time pursuant to the Credit Agreement; provided if there
shall be more than one Lender, the Lender Commitment of each Lender shall be as
set forth in Schedule 1.1 to the Credit Agreement as such Schedule 1.1 may be
amended and replaced from time to time.

     "Lender Financing Statements" shall mean UCC financing statements and
fixture filings appropriately completed and executed for filing in the
applicable jurisdiction in order to procure a security interest in favor of the
Agent in any Equipment or in any Improvements.

     "Lenders" shall mean the several banks and other financial institutions
from time to time party to the Credit Agreement.

     "Lessee" shall mean Capital One Realty, Inc., a Delaware corporation.

     "Lessor" shall mean the Owner Trustee, not in its individual capacity, but
as Lessor under the Lease.

     "Lessor Basic Rent" shall mean the scheduled Holder Yield due on the Holder
Fundings on any Scheduled Interest Payment Date pursuant to the Trust Agreement
(but not including interest on (i) any such scheduled Holder Yield due on the
Holder Fundings prior to the Basic Term Commencement Date with respect to the
Property to which such Holder Fundings relate or (ii) overdue amounts under the
Trust Agreement or otherwise).

                                 Appendix - 19
<PAGE>

     "Lessor Financing Statements" shall mean UCC financing statements and
fixture filings appropriately completed and executed for filing in the
applicable jurisdictions in order to protect the Lessor's interest under the
Lease to the extent the Lease is a security agreement or a mortgage.

     "Lessor Lien" shall mean any Lien, true lease or sublease or disposition of
title arising as a result of (a) any claim against the Lessor or Trust Company,
in its individual capacity, not resulting from the transactions contemplated by
the Operative Agreements, (b) any act or omission of the Lessor or Trust
Company, in its individual capacity, which is not required by the Operative
Agreements or is in violation of any of the terms of the Operative Agreements,
(c) any claim against the Lessor or Trust Company, in its individual capacity,
with respect to Taxes or Transaction Expenses against which the Lessee is not
required to indemnify Lessor or Trust Company, in its individual capacity,
pursuant to Section 13 of the Participation Agreement or (d) any claim against
the Lessor arising out of any transfer by the Lessor of all or any portion of
the interest of the Lessor in the Properties, the CORI Trust Estate or the
Operative Agreements other than the transfer of title to or possession of any
Properties by the Lessor pursuant to and in accordance with the Lease, the
Credit Agreement, the Security Agreement or the Participation Agreement or
pursuant to the exercise of the remedies set forth in Article XVII of the Lease.

     "Level Status" means the applicable Level Status set forth in the table
below (with Level Status V being the lowest Level Status and Level Status I
being the highest Level Status), it being agreed that the applicable Level
Status as of any date of determination shall be deemed to be the lowest Level
Status which includes the applicable Debt Rating by at least two of the Rating
Agencies:

<TABLE>
<CAPTION>
=========================================================================================================
                           Moody's Investors          Standard & Poor's          Fitch Investors Service,
Level Status               Service, Inc.              Ratings Services           Inc.
---------------------------------------------------------------------------------------------------------
<S>                        <C>                        <C>                        <C>
Level Status I             Baa1 or higher             BBB+ or higher             BBB+ or higher
---------------------------------------------------------------------------------------------------------
Level Status II            Baa2 or higher             BBB or higher              BBB or higher
---------------------------------------------------------------------------------------------------------
Level Status III           Baa3 or higher             BBB- or higher             BBB- or higher
---------------------------------------------------------------------------------------------------------
Level Status IV            Ba1 or higher              BB+ or higher              BB+ or higher
---------------------------------------------------------------------------------------------------------
Level Status V             Below Ba1 or unrated       Below BB+ or unrated       Below BB+ or unrated
=========================================================================================================
</TABLE>

     "Lien" shall mean any mortgage, pledge, security interest, encumbrance,
lien, option or charge of any kind.

     "Limited Recourse Amount" shall mean with respect to the Properties on an
aggregate basis, an amount equal to the sum of the Termination Values with
respect to all of the Properties on each Payment Date, less the Maximum Residual
Guarantee Amount as of such date with respect to the Properties.

                                 Appendix - 20
<PAGE>

     "Loans" shall have the meaning given to such term in Section 2.1(a) in the
Credit Agreement and shall include both the Tranche A Loans and the Tranche B
Loans.

     "Loan Basic Rent" shall mean the interest due on the Loans on any Scheduled
Interest Payment Date pursuant to the Credit Agreement (but not including
interest on (i) any such Loan prior to the Basic Term Commencement Date with
respect to the Property to which such Loan relates or (ii) any overdue amounts
under Section 2.8(c) of the Credit Agreement or otherwise).

     "Loan Property Cost" shall mean, with respect to each Property at any date
of determination, an amount equal to (a) the aggregate principal amount all
Loans (including without limitation all Acquisition Loans and Construction
Loans) made on or prior to such date with respect to such Property (including
any Loans made to fund interest, Transaction Expenses and indemnity payments
prior to the Basic Term Commencement Date for each Property Date attributed or
allocated to such Property), minus (b) the aggregate amount of prepayments or
                             -----
repayments as the case may be of the Loans allocated to reduce the Loan Property
Cost of such Property pursuant to Section 2.6(c) of the Credit Agreement.

     "Majority Lenders" shall mean at any time, Lenders whose Loans outstanding
represent at least fifty-one percent (51%) of the aggregate Loans outstanding.

     "Marketing Period" shall mean, if the Lessee has given a Sale Notice in
accordance with Section 20.1 of the Lease, the period commencing on the date
such Sale Notice is given and ending on the Expiration Date.

     "Material Adverse Effect" shall, mean a material adverse effect on (a) the
business, condition (financial or otherwise), assets, liabilities or operations
of the Credit Parties and their Affiliates taken as a whole, (b) the ability of
any Credit Party to perform its respective obligations under any Operative
Agreement to which it is a party, (c) the validity or enforceability of any
Operative Agreement or the rights and remedies of the Agent, the Lenders, the
Holders, or the Lessor thereunder, (d) the validity, priority or enforceability
of any Lien on any Property created by any of the Operative Agreements, or (e)
the value, utility or useful life of any Property or the use, or ability of the
applicable Lessee to use, any Property for the purpose for which it was
intended.

     "Maturity Date" shall mean the Expiration Date.

     "Maximum Amount" shall mean, as of any date of payment, without
duplication, (a) one hundred percent (100%) of the cost of acquiring the Land
for all, but not less than all, the Construction Period Properties
(collectively, the "Land Cost"), plus (b) the product of eighty-nine and nine-
tenths percent (89.9%) multiplied by the following: aggregate Termination Value
for all, but not less than all, the Construction Period Properties, minus the
                                                                    -----
Land Cost, minus all structuring fees payable in connection with the
           -----
transactions evidenced by the Operative Agreements to Bank of America Securities
LLC, Bank of America, N.A. and/or any Affiliates of either of the foregoing,
minus accrued, unpaid Holder Yield respecting any and all Construction Period
-----
Properties) minus (c) the value (calculated at a rate of six and one tenth
            -----
percent
                                 Appendix - 21
<PAGE>

(6.10%) per annum) of any payments previously made by the Construction Agent or
the Lessee regarding any and all Construction Period Properties and not
reimbursed minus (d) the product of ten and one-tenth percent (10.1%) multiplied
           -----
by the aggregate Future Amounts deposited into escrow with the Agent pursuant to
Section 2.1 of the Agency Agreement.

     "Maximum Property Cost" shall mean the aggregate amount of the Property
Costs for all Properties subject to the Lease as of the applicable determination
date (calculated without regard to the purchase or sale of any Property).

     "Maximum Residual Guarantee Amount" shall mean an amount equal to the
product of the aggregate Property Cost for all of Properties times 85%.

     "Modifications" shall have the meaning specified in Section 11.1(a) of the
Lease.

     "Moody's" shall mean Moody's Investors Service, Inc.

     "Mortgage Instrument" shall mean any mortgage, deed of trust or any other
instrument executed by the Owner Trustee and the Lessee in favor of the Agent
(for the benefit of the Lenders and the Holders) and evidencing a Lien on the
Property, in form and substance reasonably acceptable to the Agent.

     "Multiemployer Plan" shall mean any plan described in Section 4001(a)(3) of
ERISA to which contributions are or have been made or required by the
Construction Agent or any Credit Party or any of its Subsidiaries or ERISA
Affiliates.

     "Multiple Employer Plan" shall mean a plan to which the Construction Agent
or any Credit Party or any ERISA Affiliate and at least one other employer other
than an ERISA Affiliate is making or accruing an obligation to make, or has made
or accrued an obligation to make, contributions.

     "Net Proceeds" shall mean all amounts paid in connection with any Casualty
or Condemnation, and all interest earned thereon, less the expense of claiming
and collecting such amounts, including all costs and expenses in connection
therewith for which the Agent or Lessor are entitled to be reimbursed pursuant
to the Lease.

     "Net Sale Proceeds Shortfall" shall mean the amount by which the proceeds
of a sale described in Section 22.1 of the Lease (net of all expenses of sale)
are less than the Limited Recourse Amount with respect to the Properties to the
extent it has been determined that the Fair Market Sales Value of the Properties
at the expiration of the term of the Lease has been impaired by greater than
expected wear and tear during the Term of the Lease.

     "Non-Excluded Taxes" shall have the meaning given to such term in Section
2.13 of the Credit Agreement.

                                 Appendix - 22
<PAGE>

     "Notes" shall mean those notes issued to the Lenders pursuant to the Credit
Agreement and shall include both the Tranche A Notes and the Tranche B Notes.

     "Occupational Safety and Health Law" shall mean the Occupational Safety and
Health Act of 1970 and any other federal, state or local statute, law,
ordinance, code, rule, regulation, order or decree regulating or relating to, or
imposing liability or standards of conduct concerning, employee health and/or
safety, as now or at any time hereafter in effect.

     "Officer's Certificate" with respect to any person shall mean a certificate
executed on behalf of such person by a Responsible Officer who has made or
caused to be made such examination or investigation as is necessary to enable
such Responsible Officer to express an informed opinion with respect to the
subject matter of such Officer's Certificate.

     "Operative Agreements" shall mean the following: the Participation
Agreement, the Agency Agreement, the Trust Agreement, the Certificates, the
Credit Agreement, the Notes, the Lease (and a memorandum thereof in a form
reasonably acceptable to the Agent), each Lease Supplement (and a memorandum
thereof in a form reasonably acceptable to the Agent), the Security Documents
and each Ground Lease.

     "Overdue Interest" shall mean any interest payable pursuant to Section
2.8(b) of the Credit Agreement.

     "Overdue Rate" shall mean (i) with respect to Loan Basic Rent, and any
other amount owed under or with respect to the Credit Agreement or the Security
Documents, the rate specified in Section 2.8(b) of the Credit Agreement, (ii)
with respect to Lessor Basic Rent, the Holder Yield and any other amount owed
under or with respect to the Trust Agreement, the applicable rate specified in
the Trust Agreement, and (iii) with respect to any other amount, the lesser of
the ABR plus two percent (2%) or the amount referred to in clause (y) of Section
2.8(b) of the Credit Agreement.

     "Owner Trustee," "Borrower" or "Lessor" shall mean First Security Bank,
National Association, not individually, except as expressly stated in the
various Operative Agreements, but solely as Owner Trustee under the Capital One
Realty Trust 1998-1, and any successor or replacement Owner Trustee expressly
permitted under the Operative Agreements.

     "Participant" shall have the meaning given to such term in Section 9.7 of
the Credit Agreement.

     "Participation Agreement" shall mean the Participation Agreement (Capital
One Realty, Inc.) dated as of the Initial Closing Date, among the Lessee, the
Guarantor, the Owner Trustee, not in its individual capacity except as expressly
stated therein, the Holders, the Lenders and the Agent, as such Participation
Agreement may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof or of any other Operative Agreement.

                                 Appendix - 23
<PAGE>

     "Payment Date" shall mean any Scheduled Interest Payment Date and any date
on which interest or Holder Yield in connection with a prepayment of principal
on the Loans or of the Holder Fundings is due under the Credit Agreement or the
Trust Agreement.

     "PBGC" shall mean the Pension Benefit Guaranty Corporation created by
Section 4002(a) of ERISA or any successor thereto.

     "Pension Plan" shall mean a "pension plan", as such term is defined in
section 3(2) of ERISA, which is subject to title IV of ERISA (other than a
Multiemployer Plan), and to which the Lessee or any ERISA Affiliate may have any
liability, including any liability by reason of having been a substantial
employer within the meaning of section 4063 of ERISA at any time during the
preceding five (5) years, or by reason of being deemed to be a contributing
sponsor under section 4069 of ERISA.

     "Permitted Exceptions" shall mean Liens of the types described in clauses
(i), (ii), (iii), (v) and (viii) of the definition of Permitted Liens.

     "Permitted Facility" shall mean (a) that certain campus facility in Federal
Way, Washington, Phase I of which contains 10.29 acres and will have a single
building of 143,958 square feet and Phase II of which contains 11.87 acres is
anticipated to have two three-story buildings of approximately 100,000 square
feet each, one of which (including the related real property) may be financed
hereunder and (b) that certain 4-story office building at 8715 Henderson Road,
Tampa, Florida  33634, its respective interest in the related 5-story parking
garage and the related ground lease for the real property at such location or
such other facility proposed by the Lessee and acceptable to the Lenders and the
Holders, as provided in Section 5.3(t) of the Participation Agreement.

     "Permitted Liens" shall mean:

               (i) the respective rights and interests of the parties to the
     Operative Agreements as provided in the Operative Agreements;

               (ii) the rights of any sublessee or assignee under a sublease or
     an assignment expressly permitted by the terms of the Lease;

               (iii)  Liens for Taxes that either are not yet due or are being
     contested in accordance with the provisions of Section 13.1 of the Lease;

               (iv) Liens arising by operation of law, materialmen's,
     mechanics', workmen's, repairmen's, employees', carriers', warehousemen's
     and other like Liens relating to the construction of the Improvements or in
     connection with any Modifications or arising in the ordinary course of
     business for amounts that either are not more than 30 days past due or are
     being diligently contested in good faith by appropriate proceedings, so
     long as such proceedings satisfy the conditions for the continuation of
     proceedings to contest Taxes set forth in Section 13.1 of the Lease;

                                 Appendix - 24
<PAGE>

               (v)     Liens of any of the types referred to in clause (iv)
     above that have been bonded for not less than the full amount in dispute
     (or as to which other security arrangements satisfactory to the Lessor and
     the Agent have been made), which bonding (or arrangements) shall comply
     with applicable Legal Requirements, and shall have effectively stayed any
     execution or enforcement of such Liens;

               (vi)    Liens arising out of judgments or awards with respect to
     which appeals or other proceedings for review are being prosecuted in good
     faith and for the payment of which adequate reserves have been provided as
     required by GAAP or other appropriate provisions have been made, so long as
     such proceedings have the effect of staying the execution of such judgments
     or awards and satisfy the conditions for the continuation of proceedings to
     contest Taxes set forth in Section 13.1 of the Lease;

               (vii)   Liens in favor of municipalities to the extent agreed to
     by the Lessor; and

               (viii)  all encumbrances, exceptions, restrictions, easements,
     rights of way, servitudes, encroachments and irregularities in title, other
     than Liens which, in the reasonable assessment of the Agent, do not
     materially impair the value or the use of the Property for its intended
     purpose.

     "Person" shall mean any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
governmental authority or any other entity.

     "Plans and Specifications" shall mean, with respect to Improvements, the
plans and specifications for such Improvements to be constructed or already
existing, as such Plans and Specifications may be amended, modified or
supplemented from time to time in accordance with the terms of the Participation
Agreement.

     "Prime Lending Rate" shall have the meaning given to such term in the
definition of ABR.

     "Property" shall mean, with respect to each Permitted Facility that is (or
is to be) acquired, constructed and/or renovated pursuant to the terms of the
Operative Agreements, the Land and each item of Equipment and the various
Improvements, in each case located on such Land, including without limitation
each Construction Period Property and each Property for which the Basic Term has
commenced.

     "Property Acquisition Cost" shall mean the cost to Lessor to purchase a
Property on a Property Closing Date.

     "Property Closing Date" shall mean the date on which the Lessor purchases
or leases (pursuant to a Ground Lease) a Property or, with respect to the first
Advance, the date on which the Lessor seeks reimbursement for Property
previously purchased or leased by the Lessor.

                                 Appendix - 25
<PAGE>

     "Property Cost" shall mean with respect to a Property the aggregate amount
of the Loan Property Cost, plus the Holder Property Cost for such Property (as
such amounts shall be increased equally among all Properties respecting the
Holder Fundings and the Loans extended from time to time to pay for the
Transaction Expenses, fees, expenses and other disbursements referenced in
Article IX and indemnity payments pursuant to Section 13.6, in each case of the
Participation Agreement).

     "Purchase Option" shall have the meaning given to such term in Section 20.1
of the Lease.

     "Purchasing Lender" shall have the meaning given to such term in Section
9.8(a) of the Credit Agreement.

     "Rating Agencies" shall mean Moody's, S&P and Fitch or, in each case, any
successor nationally recognized statistical rating organization.

     "Redemption Date" shall have the meaning given to such term in Section
3.1(d) of the Trust Agreement.

     "Register" shall have the meaning given to such term in Section 9.9(a) of
the Credit Agreement.

     "Release" shall mean any release, pumping, pouring, emptying, injecting,
escaping, leaching, dumping, seepage, spill, leek, flow, discharge, disposal or
emission of a Hazardous Substance.

     "Regulation D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System (or any successor), as the same may be modified and
supplemented and in effect from time to time.

     "Renewal Term" shall have the meaning specified in Section 2.2 of the
Lease.

     "Rent" shall mean, collectively, the Basic Rent and the Supplemental Rent,
in each case payable under the Lease.

     "Reportable Event" shall have the meaning specified in ERISA.

     "Requested Funds" shall mean any funds requested by the Lessee or the
Construction Agent, as applicable, in accordance with Section 5 of the
Participation Agreement.

     "Requirement of Law" shall mean, as to any Person, the Certificate of
Incorporation and By-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

                                 Appendix - 26
<PAGE>

     "Requisition" shall have the meaning specified in Section 4.2 of the
Participation Agreement.

     "Responsible Officer" shall mean the Chairman or Vice Chairman of the Board
of Directors, the Chairman or Vice Chairman of the Executive Committee of the
Board of Directors, the President, any Senior Vice President or Executive Vice
President, any Vice President, the Secretary, any Assistant Secretary, the
Treasurer, or any Assistant Treasurer or any other officer with responsibility
for and knowledge of the subject matter, except that when used with respect to
the Trust Company or the Owner Trustee, "Responsible Officer" shall also include
the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust
Officer, the Controller and any Assistant Controller or any other officer of the
Trust Company or the Owner Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

     "S&P" shall mean Standard and Poors Rating Group, a division of McGraw
Hill, Inc.

     "Sale Date" shall have the meaning given to such term in Section 22.1(a) of
the Lease.

     "Sale Notice" shall mean a notice given to Lessor in connection with the
election by Lessee of its Sale Option.

     "Sale Option" shall have the meaning given to such term in Section 20.1 of
the Lease.

     "Scheduled Interest Payment Date" shall mean (a) as to any Eurodollar Loan
or Eurodollar Holder Funding, the last day of the Interest Period applicable to
such Eurodollar Loan or Eurodollar Holder Funding (or respecting any Eurodollar
Loan or Eurodollar Holder Funding having an Interest Period of six (6) months,
the three (3) month anniversary of such Interest Period), (b) as to any ABR Loan
or any ABR Holder Funding, the fifteenth day of each month, unless such day is
not a Business Day and in such case on the next occurring Business Day and (c)
as to all Loans and Holder Fundings, the date of any voluntary or involuntary
payment, prepayment, return or redemption, and the Redemption Date or the
Expiration Date, as the case may be.

     "Securities Act" shall mean the Securities Act of 1933, as amended,
together with the rules and regulations promulgated thereunder.

     "Security Agreement" shall mean the Security Agreement (Capital One Realty,
Inc.) dated as of the Initial Closing Date between the Lessor and the Agent, for
the benefit of the Lenders and, respecting the Security Documents, the Holders,
as amended, supplemented or otherwise modified from time to time.

     "Security Documents" shall mean the collective reference to the Security
Agreement, the Mortgage Instruments, and all other security documents hereafter
delivered to the Agent granting a lien on any asset or assets of any Person to
secure the obligations and liabilities of the Lessor under

                                 Appendix - 27
<PAGE>

the Credit Agreement and/or under any of the other Credit Documents or to secure
any guarantee of any such obligations and liabilities.

     "Soft Costs" shall mean all costs related to the development and
construction of the Improvements other than Hard Costs.

     "Subsidiary" shall mean, as to any Person, any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power to elect a majority of the board of directors of such corporation
(irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person, or by one or
more Subsidiaries, or by such Person and one or more Subsidiaries.

     "Supplemental Rent" shall mean all amounts, liabilities and obligations
(other than Basic Rent) which the Lessee assumes or agrees to pay to Lessor, the
Trust Company, the Holders, the Agent, the Lenders or any other Person under the
Lease or under any of the other Operative Agreements including, without
limitation, payments of the Termination Value and the Maximum Residual Guarantee
Amount and all indemnification amounts, liabilities and obligations.

     "Taxes" shall have the meaning specified in the definition of Impositions.

     "Term" shall mean the Basic Term (including any Renewal Term).

     "Termination Date" shall have the meaning specified in Section 16.2(a) of
the Lease.

     "Termination Event" shall mean (a) with respect to any Pension Plan, the
occurrence of a Reportable Event or an event described in Section 4062(e) of
ERISA, (b) the withdrawal of the Construction Agent or any Credit Party or any
ERISA Affiliate from a Multiple Employer Plan during a plan year in which it was
a substantial employer (as such term is defined in Section 4001(a)(2) of ERISA),
or the termination of a Multiple Employer Plan, (c) the distribution of a notice
of intent to terminate a Plan or Multiemployer Plan pursuant to Section
4041(a)(2) or 4041A of ERISA, (d) the institution of proceedings to terminate a
Plan or Multiemployer Plan by the PBGC under Section 4042 of ERISA, (e) any
other event or condition which might constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Plan or Multiemployer Plan, or (f) the complete or partial withdrawal of the
Construction Agent or any Credit Party or any ERISA Affiliate from a
Multiemployer Plan.

     "Termination Notice" shall have the meaning specified in Section 16.1 of
the Lease.

     "Termination Value" shall mean, without duplication, the sum of (a) either
(i) with respect to all Properties, an amount equal to the aggregate outstanding
Property Cost for all the Properties, in each case as of the last occurring
Payment Date, or (ii) with respect to a particular Property, an amount equal to
the product of the Termination Value of all the Properties times a fraction, the
numerator of which is the Property Cost allocable to the particular Property in
question and the denominator of which is the aggregate Property Cost for all the
Properties, in each case as of the

                                 Appendix - 28
<PAGE>

last occurring Payment Date, plus (b) respecting the amounts described in each
of the foregoing subclause (i) or (ii), as applicable, any and all accrued and
unpaid interest on the Loans and any and all accrued and unpaid Holder Yield on
the Holder Fundings related to the applicable Property Cost plus (c) all other
Rent and other amounts then due and payable or accrued and unpaid under the
Agency Agreement, Lease and/or under any other Operative Agreement (including
without limitation all costs and expenses referred to in clause FIRST of Section
                                                                -----
22.2 of the Lease).

     "Total Condemnation" shall mean a Condemnation that involves a taking of
Lessor's entire title to a Property.

     "Tranche A Commitments" shall mean the obligation of the Tranche A Lenders
to make the Tranche A Loans to the Lessor in an aggregate principal amount at
any one time outstanding not to exceed the aggregate of the amounts set forth
opposite each Tranche A Lender's name on Schedule 1.1 to the Credit Agreement,
as such amount may be reduced from time to time in accordance with the
provisions of the Operative Agreements; provided no Tranche A Lender shall be
obligated to make Tranche A Loans in excess of such Tranche A Lender's share of
the Tranche A Commitments as set forth adjacent to such Tranche A Lender's name
on Schedule 1.1 to Credit Agreement.

     "Tranche A Lenders" shall mean the several banks and other financial
institutions from time to time party to the Credit Agreement that commit to make
the Tranche A Loans, together with their successors and assigns.

     "Tranche A Loans" shall mean the Loans made pursuant to the Tranche A
Commitment.

     "Tranche A Note" shall have the meaning given to it in Section 2.2 of the
Credit Agreement.

     "Tranche B Commitments" shall mean the obligation of the Tranche B Lenders
to make the Tranche B Loans to the Lessor in an aggregate principal amount at
any one time outstanding not to exceed the aggregate of the amounts set forth
opposite each Tranche B Lender's name on Schedule 1.1 to the Credit Agreement,
as such amount may be reduced from time to time in accordance with the
provisions of the Operative Agreements; provided no Tranche B Lender shall be
obligated to make Tranche B Loans in excess of such Tranche B Lender's share of
the Tranche B Commitments as set forth adjacent to such Tranche B Lender's name
on Schedule 1.1 to Credit Agreement.

     "Tranche B Lenders" shall mean the several banks and other financial
institutions from time to time party to the Credit Agreement that commit to make
the Tranche B Loans, together with their successors and assigns.

     "Tranche B Loan" shall mean the Loans made pursuant to the Tranche B
Commitment.

     "Tranche B Note" shall have the meaning given to it in Section 2.2 of the
Credit Agreement.
                                 Appendix - 29
<PAGE>

     "Transaction Expenses" shall mean all costs and expenses incurred in
connection with the preparation, execution and delivery of the Operative
Agreements and the transactions contemplated by the Operative Agreements
including without limitation:

          (a) the reasonable fees, out-of-pocket expenses and disbursements of
     counsel in negotiating the terms of the Operative Agreements and the other
     transaction documents, preparing for the closings under, and rendering
     opinions in connection with, such transactions and in rendering other
     services customary for counsel representing parties to transactions of the
     types involved in the transactions contemplated by the Operative
     Agreements;

          (b) any and all other reasonable fees, charges or other amounts
     payable to the Lenders, Agent, the Holders, the Owner Trustee or any broker
     which arises under any of the Operative Agreements;

          (c) any other reasonable fee, out-of-pocket expenses, disbursement or
     cost of any party to the Operative Agreements or any of the other
     transaction documents; and

          (d) any and all Taxes and fees incurred in recording or filing any
     Operative Agreement or any other transaction document, any deed,
     declaration, mortgage, security agreement, notice or financing statement
     with any public office, registry or governmental agency in connection with
     the transactions contemplated by the Operative Agreement.

     "Tribunal" shall mean any state, commonwealth, federal, foreign,
territorial, or other court or government body, subdivision agency, department,
commission, board, bureau or instrumentality of a governmental body.

     "Trust Agreement" shall mean the Amended and Restated Trust Agreement dated
as of the Initial Closing Date between the Holders and the Owner Trustee.

     "Trust Company" shall mean First Security Bank, National Association, in
its individual capacity, and any successor owner trustee under the Trust
Agreement in its individual capacity.

     "Trust Estate" shall have the meaning specified in Section 2.2 of the Trust
Agreement.

     "Type" shall mean, as to any Loan, whether it is an ABR Loan or a
Eurodollar Loan.

     "UCC Financing Statements" shall mean collectively the Lender Financing
Statements and the Lessor Financing Statements.

     "Unanimous Vote Matters" shall have the meaning given it in Section 10.2(j)
of the Participation Agreement.

     "Unfunded Amount" shall have the meaning specified in Section 3.2 of the
Agency Agreement.

                                 Appendix - 30
<PAGE>

     "Uniform Commercial Code" and "UCC" shall mean the Uniform Commercial Code
as in effect in any applicable jurisdiction.

     "United States Bankruptcy Code" shall mean Title 11 of the United States
Code.

     "Voting Power" shall mean, with respect to securities issued by any Person,
the combined voting power of all securities of such person which are issued and
outstanding at the time of determination and which are entitled to vote in the
election of directors or such Person, other than securities having such power
only by reason of the happening of a contingency.

     "Wholly-Owned Entity" shall mean a Person all of the shares of capital
stock or other ownership interest of which are owned by the referenced Person
and/or one of its wholly-owned Subsidiaries or other wholly-owned entities.

     "Withdrawal Liability" shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

     "Work" shall mean the furnishing of labor, materials, components,
furniture, furnishings, fixtures, appliances, machinery, equipment, tools,
power, water, fuel, lubricants, supplies, goods and/or services with respect to
any Property.

     "Year 2000 Problem" shall have the meaning specified in Section 7.3(i) of
the Participation Agreement.
                                 Appendix - 31<PAGE>

--------------------------------------------------------------------------------

                                 Exhibit 10.24
                                 -------------

                               CREDIT AGREEMENT
                         (Capital One Services, Inc.)

                                     among

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

                              The Several Lenders
                       from Time to Time Parties Hereto,

                                      and

                             BANK OF AMERICA, N.A.
                            as Administrative Agent

                         Dated as of September 3, 1999

--------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
<S>                                                                                                             <C>
SECTION 1   DEFINITIONS........................................................................................  1
     1.1 Definitional Provisions...............................................................................  1
SECTION 2   AMOUNT AND TERMS OF COMMITMENTS....................................................................  2
     2.1 Commitments...........................................................................................  2
     2.2 Notes.................................................................................................  2
     2.3 Procedure for Borrowing...............................................................................  3
     2.4 Facility Fee..........................................................................................  3
     2.5 Termination or Reduction of Commitments...............................................................  4
     2.6 Prepayments and Payments..............................................................................  4
     2.7 Conversion and Continuation Options...................................................................  5
     2.8 Interest Rates and Payment Dates......................................................................  6
     2.9 Computation of Interest...............................................................................  6
     2.10 Pro Rata Treatment and Payments......................................................................  7
     2.11 Increased Costs, Illegality, etc.....................................................................  8
     2.12 Funding Indemnity....................................................................................  9
     2.13 Taxes................................................................................................ 10
     2.14 Notice of Amounts Payable; Mandatory Assignment...................................................... 12
SECTION 3   REPRESENTATIONS AND WARRANTIES..................................................................... 12
      3.1 Due Organization, etc................................................................................ 13
      3.2 Authorization; No Conflict........................................................................... 13
      3.3 Enforceability, Etc.................................................................................. 13
      3.4 Litigation........................................................................................... 14
      3.5 Lessor Liens......................................................................................... 14
      3.6 Assignment........................................................................................... 14
      3.7 Defaults............................................................................................. 14
      3.8 Documentation........................................................................................ 14
      3.9 Use of Proceeds...................................................................................... 14
     3.10 Securities Act....................................................................................... 14
     3.11 Chief Place of Business.............................................................................. 15
     3.12 Federal Reserve Regulations.......................................................................... 15
     3.13 Investment Company Act............................................................................... 15
SECTION 4   CONDITIONS PRECEDENT............................................................................... 15
     4.1 Conditions to Effectiveness........................................................................... 15
     4.2 Conditions to Each Loan............................................................................... 15
SECTION 5   COVENANTS.......................................................................................... 16
     5.1 Other Activities...................................................................................... 16
     5.2 Ownership of Properties, Indebtedness................................................................. 16
     5.3 Disposition of Assets................................................................................. 17
     5.4 Compliance with Operative Agreements.................................................................. 17
     5.5 Further Assurances.................................................................................... 17
     5.6 Notices............................................................................................... 17
     5.7 Discharge of Liens.................................................................................... 17
     5.8 Trust Agreement....................................................................................... 18
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                              <C>
SECTION 6   EVENTS OF DEFAULT................................................................................... 18
SECTION 7   THE ADMINISTRATIVE AGENT............................................................................ 20
     7.1 Appointment............................................................................................ 20
     7.2 Delegation of Duties................................................................................... 21
     7.3 Exculpatory Provisions................................................................................. 21
     7.4 Reliance by Administrative Agent....................................................................... 21
     7.5 Notice of Default...................................................................................... 22
     7.6 Non-Reliance on Administrative Agent and Other Lenders................................................. 22
     7.7 Indemnification........................................................................................ 23
     7.8 Administrative Agent in Its Individual Capacity........................................................ 23
     7.9 Successor Administrative Agent......................................................................... 23
    7.10 Actions of Administrative Agent on Behalf of Holders................................................... 24
SECTION 8   MATTERS RELATING TO PAYMENT AND COLLATERAL.......................................................... 24
     8.1 Collection of Payments and Other Amounts............................................................... 24
     8.2 Certain Remedial Matters............................................................................... 27
     8.3 Release of Properties, etc............................................................................. 28
     8.4 Excepted Payments...................................................................................... 28
SECTION 9   MISCELLANEOUS....................................................................................... 28
     9.1 Amendments and Waivers................................................................................. 28
     9.2 Notices................................................................................................ 30
     9.3 No Waiver; Cumulative Remedies......................................................................... 31
     9.4 Survival of Representations and Warranties............................................................. 31
     9.5 Payment of Expenses and Taxes.......................................................................... 31
     9.6 Successors and Assigns; Participations and Assignments................................................. 31
     9.7 Participations......................................................................................... 31
     9.8 Assignments............................................................................................ 32
     9.9 The Register; Disclosure; Pledges to Federal Reserve Banks............................................. 34
    9.10 Adjustments; Set-off................................................................................... 35
    9.11 Counterparts........................................................................................... 36
    9.12 Severability........................................................................................... 36
    9.13 Integration............................................................................................ 36
    9.14 GOVERNING LAW.......................................................................................... 36
    9.15 Submission To Jurisdiction; Waivers.................................................................... 36
    9.16 Acknowledgments........................................................................................ 37
    9.17 WAIVERS OF JURY TRIAL.................................................................................. 37
    9.18 Nonrecourse............................................................................................ 37
    9.19 USURY SAVINGS PROVISION................................................................................ 38
</TABLE>

SCHEDULES

Schedule 1.1......Commitments and Addresses of Lenders

                                      ii
<PAGE>

EXHIBITS

Exhibit A-1         Form of Tranche A Note

Exhibit A-2         Form of Tranche B Note

Exhibit B           Form of Assignment and Acceptance

                                      iii
<PAGE>

                               CREDIT AGREEMENT
                         (Capital One Services, Inc.)

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

     The parties hereto hereby agree as follows:

                            SECTION 1   DEFINITIONS

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

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

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

          (c)  The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

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

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

          SECTION 2 AMOUNT AND TERMS OF COMMITMENTS

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

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

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

          2.2  Notes.
               -----

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

                                       2
<PAGE>

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

          (a)  The Borrower may borrow under the Commitments during the
Commitment Period on any Business Day that an Advance may be requested pursuant
to the terms of Section 5.2 of the Participation Agreement, provided that the
                                                            --------
Borrower shall give the Administrative Agent irrevocable notice (which must be
received by the Administrative Agent (i) prior to 12:00 Noon, Dallas, Texas
time, three Business Days prior to the requested Borrowing Date if all or any
part of the requested Loans are to be Eurodollar Loans, or (ii) prior to 10:00
a.m. Dallas, Texas time three Business Days prior to the requested Borrowing
Date with respect to any Loans that are to be ABR Loans) specifying (A) the
amount to be borrowed (which on any date shall not be in excess of the then
Available Commitments), (B) the requested Borrowing Date, (C) whether the
borrowing is to be of Eurodollar Loans, ABR Loans or a combination thereof, (D)
if the borrowing is to be a combination of Eurodollar Loans and ABR Loans, the
respective amounts of each Type of Loan and (E) the Interest Period applicable
to any Eurodollar Loan; provided, however, that during the Commitment Period (1)
there shall be only one Interest Period applicable for all amounts outstanding
hereunder bearing interest based on the Eurodollar Rate, (2) such Interest
Period shall commence on the date that the first Eurodollar Loan hereunder is
extended and (3) any amounts thereafter borrowed or converted hereunder during
the Commitment Period which are to bear interest based on the Eurodollar Rate
may only be borrowed or converted on the first day of the Interest Period
applicable to Eurodollar Loans.  Pursuant to the terms of the Participation
Agreement, the Borrower shall be deemed to have delivered such notice upon the
delivery of a notice by the Construction Agent or the Lessee containing such
required information.  Upon receipt of any such notice from the Borrower, the
Administrative Agent shall promptly notify each Lender thereof.  Each Lender
will make the amount of its pro rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the office of the
Administrative Agent specified in Section 9.2 prior to 12:00 Noon, Dallas, Texas
time, on the Borrowing Date requested by the Borrower in funds immediately
available to the Administrative Agent.  Such borrowing will then be made
available to the Borrower by the Administrative Agent crediting an account
designated, subject to Section 11.1 of the Participation Agreement, by the
Borrower on the books of such office with the aggregate of the amounts made
available to the Administrative Agent by the Lenders and in like funds as
received by the Administrative Agent.  No amount of any Loan which is repaid or
prepaid by the Borrower may be reborrowed hereunder.

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

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

          (a)  Promptly after receipt of the payment of the Facility Fee payable
pursuant to Section 9.4 of the Participation Agreement, the Agent shall
distribute such payments to the

                                       3
<PAGE>

Lenders and the Holders pro rata in accordance with their respective Commitments
and Holder Commitments.

          (b)  On each Facility Fee Payment Date during the Construction Period,
the Loan Property Cost and Construction Loan Property Cost of each Property
shall be increased by a pro rata share of any Facility Fees funded on such date
with the proceeds of Loans in accordance with the Operative Agreements.

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

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

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

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

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

          (b)  If on any date the Administrative Agent or the Lessor shall
receive any payment in respect of (i) any Casualty or Condemnation pursuant to
Section 15.1(a) or 15.1(g) of the Lease (excluding any payments in respect
thereof which are payable to Lessee in accordance with the Lease or held by
Lessor as security for performance of Lessee's obligations under the Lease), or
(ii) the Termination Value of any Property in connection with the delivery of a
Termination Notice pursuant to Article XVI of the Lease, or (iii) the
Termination Value of any Property in connection with the exercise of the
Purchase Option under Section 20.1 of the Lease or the exercise of the option of
the Lessor to transfer the Properties to the Lessee pursuant to

                                       4
<PAGE>

Section 20.3 of the Lease, or (iv) any payment in an amount equal to the
Termination Value for any and all Construction Period Properties required to be
made or elected to be made by the Construction Agent to the Lessor pursuant to
the terms of the Agency Agreement, then in each case, such amounts shall be
applied and allocated in the manner contemplated by Section 8.1(b)(ii).

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

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

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

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

                                       5
<PAGE>

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

          (a)  The Loans outstanding hereunder from time to time shall bear
interest for each day during each Interest Period with respect thereto at a rate
per annum equal to either (i) the Eurodollar Rate determined for such day plus
the Applicable Percentage or (ii) the ABR, as selected by the Borrower in
accordance with the provisions hereof; provided, however, (A) upon delivery by
the Administrative Agent of the notice described in Section 2.9(c), the Loans of
each of the Lenders shall bear interest at the ABR applicable from time to time
from and after the dates and during the periods specified in Section 2.9(c), (B)
upon the delivery by a Lender of the notice described in Section 2.11(d), the
Loans of such Lender shall bear interest at the ABR applicable from time to time
from and after the dates and during the periods specified in Section 2.11(d) and
(C) in such other circumstances as expressly provided herein, the Loans shall
bear interest at the ABR.

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

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

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

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

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

                                       6
<PAGE>

          (c)  If the Eurodollar Rate cannot be determined by the Administrative
Agent in the manner specified in the definition of the term "Eurodollar Rate"
contained in Appendix A to the Participation Agreement, the Administrative Agent
shall give telecopy or telephonic notice thereof to the Borrower and the Lenders
as soon as practicable thereafter.  Until such time as the Eurodollar Rate can
be determined by the Administrative Agent in the manner specified in the
definition of such term, no further Eurodollar Loans shall be made or shall be
continued as such at the end of the then current Interest Period nor shall the
Borrower have the right to convert ABR Loans to Eurodollar Loans.

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

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

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

                                       7
<PAGE>

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

          (a)  If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation or (ii) the compliance with any
guideline or request hereafter adopted, promulgated or made by any central bank
or other governmental authority (whether or not having the force of law), there
shall be any increase in the cost to any Lender of agreeing to make or making,
funding or maintaining Loans, then the Borrower shall from time to time, upon
demand by such Lender (with a copy of such demand to the Administrative Agent
but subject to the terms of Section 2.14), pay (with funds provided by the
Lessee as Supplemental Rent pursuant to Section 3.3 of the Lease after the Basic
Term Commencement Date or pursuant to Article IX or Section 13.6 of the
Participation Agreement prior to the Basic Term Commencement Date) to the
Administrative Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost.  A certificate as
to the amount of such increased cost, submitted to the Borrower and the
Administrative Agent by such Lender, shall be conclusive and binding for all
purposes, absent manifest error.

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

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

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

          (ii)   the remainder of (x) a fraction the numerator of which is
     the rate (expressed as a decimal) at which interest accrues on such
     Eurodollar Loan for such

                                       8
<PAGE>

     Interest Period as provided in this Credit Agreement (less the Applicable
     Percentage) and the denominator of which is one minus the effective rate
     (expressed as a decimal) at which such reserve requirements are imposed
     on such Lender on such day minus (y) such numerator; and
                                -----
          (iii)  1/360.

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

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

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

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

                                       9
<PAGE>

such Loan for such Interest Period over  the amount of interest (as determined
by such Lender) which would have accrued to such Lender on such amount by
reemploying such funds in loans of the same type and amount during the period
from the date of prepayment or failure to borrow to the last day of the then
applicable Interest Period (or, in the case of a failure to borrow, the Interest
Period that would have commenced on the date of such failure).  This covenant
shall survive the termination of this Agreement and the payment of all other
amounts payable hereunder.

          2.13 Taxes.
               -----

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

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

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

                                       10
<PAGE>

For the purposes of this Section 2.13(a), (A) "U.S. Person" shall mean a
                                               -----------
citizen, national or resident of the United States of America, a corporation,
partnership or other entity created or organized in or under any laws of the
United States of America or any State thereof, or any estate or trust that is
subject to Federal income taxation regardless of the source of its income, (B)
"U.S. Taxes" shall mean any present or future tax, assessment or other charge or
 ----------
levy imposed by or on behalf of the United States of America or any taxing
authority thereof or therein, (C) "Form 1001" shall mean Form 1001 (Ownership,
                                   ---------
Exemption, or Reduced Rate Certificate) of the Department of the Treasury of the
United States of America and (D) "Form 4224" shall mean Form 4224 (Exemption
                                  ---------
from Withholding of Tax on Income Effectively Connected with the Conduct of a
Trade or Business in the United States) of the Department of Treasury of the
United States of America (or in relation to either such Form such successor and
related forms as may from time to time be adopted by the relevant taxing
authorities of the United States of America to document a claim to which such
Form relates).  Each of the Forms referred to in the foregoing clauses (C) and
(D) shall include such successor and related forms as may from time to time be
adopted by the relevant taxing authorities of the United States of America to
document a claim to which such Form relates.

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

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

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

                                       11
<PAGE>

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

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

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

                  SECTION 3 REPRESENTATIONS AND WARRANTIES

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

                                       12
<PAGE>

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

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

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

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

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

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

                                       13
<PAGE>

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

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

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

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

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

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

          3.7  Defaults.
               --------

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

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

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

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

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

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

          Neither the Owner Trustee nor any Person authorized by the Owner
Trustee to act on its behalf has offered or sold any interest in the COSI Trust
Estate or the Notes, or in any similar security relating to a Property, or in
any security the offering of which for the purposes of the Securities Act of
1933, as amended, would be deemed to be part of the same offering as the
offering of the aforementioned securities to, or solicited any offer to acquire
any of the same

                                       14
<PAGE>

from, any Person other than in the case of the Notes, the Lenders, and neither
the Owner Trustee nor any Person authorized by the Owner Trustee to act on its
behalf will take any action which would subject, as a direct result of such
action alone, the issuance or sale of any interest in the COSI Trust Estate or
the Notes to the provisions of Section 5 of the Securities Act of 1933, as
amended, or require the qualification of any Operative Agreement under the Trust
Indenture Act of 1939, as amended.

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

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

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

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

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

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

                       SECTION 4 CONDITIONS PRECEDENT

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

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

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

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

                                       15
<PAGE>

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

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

          (c)  Participation Agreement Conditions.  With respect to each
               ----------------------------------
Acquisition Loan and each Construction Loan, the  applicable conditions
precedent to the Advance associated therewith specified in Section 5 of the
Participation Agreement shall have been satisfied.

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

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

                             SECTION 5 COVENANTS

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

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

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

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

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

                                       16
<PAGE>

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

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

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

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

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

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

          5.6  Notices.
               -------

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

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

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

                                       17
<PAGE>

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

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

                         SECTION 6  EVENTS OF DEFAULT

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

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

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

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

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

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

                                       18
<PAGE>

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

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

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

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

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

then, and in any such event, (A) if such event is an Event of Default specified
in paragraph (g) above with respect to the Borrower, automatically the
Commitments shall immediately terminate and the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the Notes
shall immediately become due and payable, and (B) if such event is any other
Event of Default, either or both of the following actions may be taken:  (i)
with the

                                       19
<PAGE>

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

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

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

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

                      SECTION 7  THE ADMINISTRATIVE AGENT

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

          Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the
other Operative Agreements, and each such Lender irrevocably authorizes the
Administrative Agent, in such capacity, to execute the Operative Agreements as
agent for and on behalf of such Lender, to take such action on behalf of such
Lender under the provisions of this Agreement and the other Operative Agreements
and to

                                       20
<PAGE>

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

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

          The Administrative Agent may execute any of its duties under this
Agreement and the other Operative Agreements by or through agents or attorneys-
in-fact and shall be entitled to advice of counsel concerning all matters
pertaining to such duties.  The Administrative Agent shall not be responsible
for the negligence or misconduct of any agents or attorneys-in-fact selected by
it with reasonable care.

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

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

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

          The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any Note, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and correct
and to have been signed, sent or made by the proper Person or Persons and

                                       21
<PAGE>

upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower or the Lessee), independent accountants and other
experts selected by the Administrative Agent. The Administrative Agent may deem
and treat the payee of any Note as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been
filed with the Administrative Agent. The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Operative Agreement unless it shall first receive such advice or
concurrence of the Majority Lenders as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. The Administrative Agent shall in all cases be fully protected
in acting, or in refraining from acting, under this Agreement and the other
Operative Agreements in accordance with a request of the Majority Lenders, and
such and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future holders of the Notes.

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

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

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

          Each Lender expressly acknowledges that neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates has made any representations or warranties to it and that no act
by the Administrative Agent hereinafter taken, including any review of the
affairs of the Borrower or the Lessee, shall be deemed to constitute any
representation or warranty by the Administrative Agent to any Lender.  Each
Lender represents to the Administrative Agent that it has, independently and
without reliance upon the Administrative Agent or any other Lender, and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and the
Lessee and made its own decision to make its Loans hereunder and enter into this
Agreement.  Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking
action under this Agreement and the other Operative Agreements, and to make such
investigation as it deems necessary to inform itself as to the

                                       22
<PAGE>

business, operations, property, financial and other condition and
creditworthiness of the Borrower, the Lessee and the Guarantor. Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by the Administrative Agent hereunder, the Administrative Agent shall
not have any duty or responsibility to provide any Lender with any credit or
other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of the Borrower, the
Lessee or the Guarantor which may come into the possession of the Administrative
Agent or any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

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

          The Lenders agree to indemnify the Administrative Agent, in its
capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Commitment Percentages in effect on the date on which indemnification
is sought under this Section 7.7 (or, if indemnification is sought after the
date upon which the Commitments shall have terminated and the Loans shall have
been paid in full, ratably in accordance with their Commitment Percentages
immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Notes)
be imposed on, incurred by or asserted against any of them in any way relating
to or arising out of, the Commitments, this Agreement, any of the other
Operative Agreements or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by any of them under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment or any portion of such
--------
liabilities, obligations, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting solely from the gross negligence or willful
misconduct of the Administrative Agent.  The agreements in this Section 7.7
shall survive the payment of the Notes and all other amounts payable hereunder.

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

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

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

          The Administrative Agent may resign as Administrative Agent upon
thirty days' notice to the Lenders, the Borrower, the Lessee and the Guarantor.
If the Administrative Agent

                                       23
<PAGE>

shall resign as Administrative Agent under this Agreement, the Majority Lenders
shall appoint from among the Lenders a successor Administrative Agent which
successor Administrative Agent shall be subject to the approval of the Borrower
and, so long as no Lease Event of Default shall have occurred and be continuing,
the Lessee and the Guarantor, such approval not to be unreasonably withheld or
delayed. If no successor Administrative Agent is appointed prior to the
effective date of the resignation of the resigning Administrative Agent, the
Administrative Agent may appoint, after consulting with the Lenders and subject
to the approval of the Borrower and, so long as no Lease Event of Default shall
have occurred and be continuing, the Lessee and the Guarantor, such approval not
to be unreasonably withheld or delayed, a successor Administrative Agent from
among the Lenders. If no successor Administrative Agent has accepted appointment
as Administrative Agent by the date which is thirty days following a retiring
Administrative Agent's notice of resignation, the retiring agent's notice of
resignation shall nevertheless thereupon become effective and the Lenders shall
perform all of the duties of Administrative Agent until such time, if any, as
the Majority Lenders appoint a successor Administrative Agent, as provided for
above. Upon the effective date of such resignation, only the Lenders or such
successor Administrative Agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term "Administrative Agent"
shall mean such successor agent and the retiring Administrative Agent's rights,
powers and duties in such capacity shall be terminated. After any retiring
Administrative Agent resigns hereunder as Administrative Agent, the provisions
of this Article VII and Section 9.5 shall inure to their respective benefit as
to any actions taken or omitted to be taken by it while it was Administrative
Agent under this Agreement.

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

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

            SECTION 8  MATTERS RELATING TO PAYMENT AND COLLATERAL

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

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

                                       24
<PAGE>

by the Administrative Agent or any of the Lenders in connection with the
Collateral, the Security Documents or any of the other Operative Agreements.

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

          (i)    Any such payment or amount identified as or deemed to be
     Basic Rent shall be applied and allocated by the Administrative Agent
     first, ratably to the Lenders and the Holders for application and
     -----
     allocation to the payment of interest on the Loans and thereafter the
     principal of the Loans which is due and payable on such date and to the
     payment of accrued Holder Yield with respect to the Holder Fundings and
     thereafter the portion of the Holder Fundings which is due on such date;
     and second, if no Default or Event of Default is in effect, any excess
         ------
     shall be paid to such Person or Persons as the Lessee may designate;
     provided, that if a Default or Event of Default is in effect, such excess
     --------
     (if any) shall instead be held by the Administrative Agent until the
     earlier of (I) the first date thereafter on which no Default or Event of
     Default shall be in effect (in which case such payments or returns shall
     then be made to such other Person or Persons as the Lessee may designate)
     and (II) the Maturity Date or the Expiration Date, as the case may be (or,
     if earlier, the date of any Acceleration), in which case such amounts shall
     be applied and allocated in the manner contemplated by Section 8.1(b)(iv).

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

          (iii)  An amount equal to any payment identified as proceeds of
     the sale or other disposition (or lease upon the exercise of remedies) of
     the Properties or any portion thereof, whether pursuant to Article XXII of
     the Lease or the exercise of remedies under

                                       25
<PAGE>

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

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

          (v)    An amount equal to any such payment identified as
     Supplemental Rent and any payment by the Construction Agent not otherwise
     covered under Sections

                                       26
<PAGE>

     8.1(b)(i)-(iv) hereof shall be applied and allocated by the Administrative
     Agent to the payment of any amounts then owing to the Administrative Agent,
     the Lenders, the Holders and the other parties to the Operative Agreements
     (or any of them) (other than any such amounts payable pursuant to the
     preceding provisions of this Section 8.1(b)) as shall be determined by the
     Administrative Agent in its reasonable discretion; provided, however, that
                                                        --------  -------
     Supplemental Rent received upon the exercise of remedies after the
     occurrence and continuance of an Event of Default in lieu of or in
     substitution of the Maximum Residual Guarantee Amount or as a partial
     payment thereon shall be applied and allocated as set forth in Section
     8.1(b)(iv).

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

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

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

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

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

          (b)  the Borrower and each Holder shall at all times retain the right,
but not to the exclusion of the Administrative Agent, (A) to receive from the
Lessee all notices, certificates and other documents and all information that
the Lessee is permitted or required to give or furnish to the "Borrower" or the
"Lessor" pursuant to the Lease, the Participation Agreement or any other
Operative Agreement, (B) to retain all rights with respect to insurance that
Article XIV

                                       27
<PAGE>

of the Lease specifically confers upon the "Lessor", (C) to provide such
insurance as the Lessee shall have failed to maintain or as the Borrower or any
Holder may desire, and (D) to enforce compliance by the Lessee with the
provisions of Articles VIII, IX, X, XI, XIV and XVII of the Lease.

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

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

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

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

                           SECTION 9 MISCELLANEOUS

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

          Neither this Agreement, any other Credit Document, nor any terms
hereof or thereof may be amended, supplemented or modified except in accordance
with the provisions of this Section 9.1.  The Majority Lenders may, or, with the
written consent of the Majority Lenders, the Administrative Agent may, from time
to time, (a) with the consent of the Lessee and the Guarantor (so long as no
Default or Event of Default shall have occurred and be continuing and,
respecting an amendment, supplement or modification to Section 8.1 only, so long
as Lessee has rights in any Property under the Operative Agreements), enter into
with the Borrower written amendments, supplements or modifications to the Credit
Documents (including, without limitation, any amendment to Section 8.1 hereof)
for the purpose of adding any provisions to the Credit Documents or changing in
any manner the rights of the Administrative Agent, the Lenders or the Borrower
thereunder or (b) waive, on such terms and conditions as the Majority Lenders or
the Administrative Agent, as the case may be, may specify in such instrument,
any of the requirements of the Credit Documents or any Default or Event of
Default and its consequences.  In addition, the Administrative Agent may from
time to time consent in writing to amendments,

                                       28
<PAGE>

supplements, modifications or waivers with respect to any Operative Agreement
(other than the Credit Documents), subject to receipt of the prior written
consent of the Majority Lenders and, so long as no Default or Event of Default
shall have occurred and be continuing, the Lessee and the Guarantor; provided,
                                                                     --------
however, that so long as the Administrative Agent has no actual knowledge of the
-------
existence of an Event of Default the Administrative Agent may grant waivers
and/or consents with respect to the terms and requirements of the Participation
Agreement without the prior consent of the Lenders to the extent provided
therein (as such authority of the Administrative Agent is more specifically
described in Section 7.1 hereof). Notwithstanding the foregoing, no such
amendment, supplement, modification or waiver shall (i) reduce the amount or
extend the scheduled date of maturity of any Note, or reduce the stated rate of
any interest payable hereunder (other than as a result of waiving the
applicability of any post-default increase in interest rates) or any Facility
Fees payable under the Participation Agreement or extend the scheduled date of
any payment of such interest or Commitment Fees or increase the amount or extend
the expiration date of any Lender's Commitment, in each case without the consent
of each Lender directly affected thereby, or (ii) amend, modify or waive any
provision of this Section 9.1 or the definition of Majority Lenders, or reduce
the percentage specified in the definition of Majority Lenders, or consent to
the assignment or transfer by the Borrower of any of its rights and obligations
under the Credit Documents or release a material portion of the Collateral
(except in accordance with Section 8.3) or release the Lessee from its
obligations under the Lease or otherwise alter any payment obligations of the
Lessee to the Lessor under the Operative Agreements, in each case without the
written consent of all the Lenders, or (iii) amend, modify or waive any
provision of Section 7 without the written consent of the then Administrative
Agent or (iv) permit Advances for Work in excess of the Construction Budget
without the unanimous consent of the Lenders and Holders, or (v) eliminate the
automatic option (in the absence of the unanimous election of the Lenders and
the Holders) under Section 5.3(a) of the Agency Agreement requiring that the
Construction Agent pay certain liquidated damages in exchange for the conveyance
of a Property to the Construction Agent or (vi) permit the extension of the
Construction Period Termination Date beyond the date that is three (3) years
from the Initial Closing Date without the unanimous consent of the Lenders and
the Holders. Any such waiver and any such amendment, supplement or modification
shall apply equally to each of the Lenders and shall be binding upon the
Borrower, the Lessee, the Guarantor, the Lenders and the Administrative Agent
and all future holders of the Notes. In the case of any waiver, the Borrower,
the Lessee, the Guarantor, the Lenders and the Administrative Agent shall be
restored to their former position and rights under the Credit Documents, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extent to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

          Anything in this Agreement to the contrary notwithstanding, if at a
time when the conditions precedent set forth in Section 4.2 hereof to any Loan
hereunder are, in the opinion of the Majority Lenders, satisfied, any Lender
shall fail to fulfill its obligations to make such Loan (any such Lender, a
"Defaulting Lender") then, for so long as such failure shall continue, the
------------------
Defaulting Lender shall (unless the Borrower and the Majority Lenders,
determined as if the Defaulting Lender were not a "Lender" hereunder, shall
otherwise consent in writing) be deemed for all purposes relating to amendments,
modifications, waivers or consents under this Agreement (including, without
limitation, under this Section 9.1) to have no Loans, shall not be

                                       29
<PAGE>

treated as a "Lender" hereunder when performing the computation of Majority
Lenders, and shall have no rights under the preceding paragraph of this Section
9.1; provided that any action taken by the other Lenders pursuant to this
paragraph with respect to the matters referred to in clause (i) through (vi) of
the preceding paragraph shall not be effective as against the Defaulting Lender.

          9.2  Notices.
               -------

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

     The Borrower:

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

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

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

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

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

                                       30
<PAGE>

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

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

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

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

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

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

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

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

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

          Any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time sell to one or more banks, financial
institutions or other entities (each, a "Participant") participating interests
                                         -----------
in any Loan owing to such Lender, any Note held by such

                                       31
<PAGE>

Lender, any Commitment of such Lender or any other interest of such Lender
hereunder and under the other Operative Agreements; provided that any such sale
                                                    --------
of a participating interest shall be in a principal amount of at least
$2,000,000. In the event of any such sale by a Lender of a participating
interest to a Participant, such Lender's obligations under this Agreement to the
other parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the
holder of any such Note for all purposes under this Agreement and the Notes, and
the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and the Notes. In no event shall any
Participant have any right to approve any amendment or waiver of any provision
of this Agreement or any other Operative Agreement, or any consent to any
departure by the Borrower or any other Person therefrom, except to the extent
that such amendment, waiver or consent would (a) reduce the principal of, or
interest on, any Loan or Note, or postpone the date of the final maturity of any
Loan or Note, or reduce the amount of any Facility Fee, in each case to the
extent subject to such participation or (b) release all or substantially all of
the Collateral. The Borrower agrees that, while an Event of Default shall have
occurred and be continuing, if amounts outstanding under this Agreement and the
Notes are due or unpaid, or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall, to the maximum extent
permitted by applicable law, be deemed to have the right of setoff in respect of
its participating interests in amounts owing directly to it as a Lender under
this Agreement or any Note, provided that, in purchasing such participating
                            --------
interest, such Participant shall be deemed to have agreed to share with the
Lenders the proceeds thereof as provided in Section 9.10(a) as fully as if it
were a Lender hereunder. The Borrower also agrees that each Participant shall be
entitled to the benefits of Sections 2.11, 2.12 and 2.13 with respect to its
participation in the Commitments and the Loans outstanding from time to time as
if it was a Lender; provided that, in the case of Section 2.13, such Participant
                    --------
shall have complied with the requirements of said Section and provided, further,
                                                              --------  -------
that no Participant shall be entitled to receive any greater amount pursuant to
any such Section than the transferor Lender would have been entitled to receive
in respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred.

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

          (a)  Any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time and from time to time assign to any
Lender or any affiliate of any Lender or, with the consent, subject to Section
11.1 of the Participation Agreement, of the Borrower and the Administrative
Agent and, so long as no Default or Event of Default shall have occurred and be
continuing, the Lessee and the Guarantor (which in each case shall not be
unreasonably withheld or delayed), to an additional bank, financial institution
or other entity that is either organized under the laws of the United States or
any state thereof or is a foreign bank that operates a branch office in the
United States, (each, a "Purchasing Lender") all or any part of its rights and
                         -----------------
obligations under this Agreement and the other Operative Agreements pursuant to
an Assignment and Acceptance, substantially in the form of Exhibit B, executed
                                                           ---------
by such Purchasing Lender, such assigning Lender (and, in the case of a
Purchasing Lender that is not a Lender or an affiliate thereof, subject to
Section 11.1 of the Participation Agreement, by the

                                       32
<PAGE>

Borrower and the Administrative Agent) and delivered to the Administrative Agent
for its acceptance and recording in the Register; provided that no such
                                                  --------
assignment to a Purchasing Lender (other than any Lender or any affiliate
thereof) shall be in an aggregate principal amount less than $5,000,000 (other
than in the case of an assignment of all of a Lender's interests under this
Agreement and the Notes). Upon such execution, delivery, acceptance and
recording, from and after the effective date determined pursuant to such
Assignment and Acceptance, (x) the Purchasing Lender thereunder shall be a party
hereto and, to the extent provided in such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder with a Commitment as set forth
therein, and (y) the assigning Lender thereunder shall, to the extent provided
in such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
remaining portion of an assigning Lender's rights and obligations under this
Agreement, such assigning Lender shall cease to be a party hereto).
Notwithstanding anything to the contrary in this Agreement, the consent of the
Borrower shall not be required, and, unless requested by the relevant Purchasing
Lender and/or assigning Lender, new Notes shall not be required to be executed
and delivered by the Borrower, for any assignment which occurs at any time when
any of the events described in Section 6(g) shall have occurred and be
continuing.

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

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

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

                                       33
<PAGE>

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

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

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

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

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

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

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

          (a)  The Administrative Agent shall maintain at its address referred
to in Section 9.2 a copy of each Assignment and Acceptance delivered to it and a
register (the "Register") for the recordation of the names and addresses of the
               --------
Lenders, the Commitments of the Lenders, and the principal amount of the Loans
owing to each Lender from time to time. The entries in the Register shall be
conclusive, in the absence of clearly demonstrable error, and the

                                       34
<PAGE>

Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as the owner of the Loan recorded therein for
all purposes of this Agreement. The Register shall be available for inspection
by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable notice.

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

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

          (a)  Except as otherwise expressly provided in Section 8.1 hereof
where, and to the extent, one Lender is entitled to payments prior to other
Lenders, if any Lender (a "Benefited Lender") shall at any time receive any
                           ----------------
payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off,
pursuant to events or proceedings of the nature referred to in Section 6(g), or
otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of such other Lender's Loans,
or interest thereon, such Benefited Lender shall purchase for cash from the
other Lenders a participating interest in such portion of each such other
Lender's Loan, or shall provide such other Lenders with the benefits of any such
collateral, or the proceeds thereof, as shall be necessary to cause such
Benefited Lender to share the excess payment or benefits of such collateral or
proceeds ratably with each of the Lenders; provided, however, that if all or any
                                           --------  -------
portion of such excess payment or benefits is thereafter recovered from such
Benefited Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the event of such recovery, but without interest.

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

                                       35
<PAGE>

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

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

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

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

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

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

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

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

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

          The Borrower hereby irrevocably and unconditionally:

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

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

                                       36
<PAGE>

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

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

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

          Borrower hereby acknowledges that:

          (a)  neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duly to the Borrower arising out of or in connection with
this Agreement or any of the other Credit Documents, and the relationship
between the Administrative Agent and the Lenders, on one hand, and the Borrower,
on the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and

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

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

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

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

          Anything to the contrary contained in this Agreement or in any other
Operative Agreement notwithstanding, neither the Borrower nor any officer,
director or shareholder thereof, nor any of the Borrower's successors or assigns
(all such Persons being hereinafter referred to collectively as the "Exculpated
                                                                     ----------
Persons"), shall be personally liable in any respect for any liability or
-------
obligation hereunder or under any other Operative Agreement including the
payment of the principal of, or interest on, the Notes, or for monetary damages
for the breach of performance of any of the covenants contained in this
Agreement, the Notes or any of the other Operative Agreements.  The
Administrative Agent and the Lenders agree that, in the event any of them
pursues any remedies available to them under this Agreement, the Notes or any
other Operative Agreement, neither the Administrative Agent nor the Lenders
shall have any recourse against the Borrower, nor any other Exculpated Person,
for any deficiency, loss or claim for monetary damages or otherwise resulting
therefrom and recourse shall be had solely and exclusively against the COSI
Trust Estate and as permitted under the Operative Agreements; but nothing
contained herein shall be taken to prevent recourse against or the enforcement
of

                                       37
<PAGE>

remedies against the COSI Trust Estate in respect of any and all liabilities,
obligations and undertakings contained in this Agreement, the Notes or any other
Operative Agreement.  The Administrative Agent and the Lenders further agree
that the Borrower shall not be responsible for the payment of any amounts owing
hereunder (excluding principal and interest (other than Overdue Interest) in
respect of the Loans) (such non-excluded amounts, "Supplemental Amounts") except
                                                   --------------------
to the extent that payments of Supplemental Rent designated by the Lessee for
application to such Supplemental Amounts shall have been paid by the Lessee
pursuant to the Lease (it being understood that the failure by the Lessee for
any reason to pay any Supplemental Rent in respect of such Supplemental Amounts
shall nevertheless be deemed to constitute a default by the Borrower for the
purposes of Section 6(a)(ii)).  Notwithstanding the foregoing provisions of this
Section 9.18, nothing in this Agreement or any other Operative Agreement shall
(a) constitute a waiver, release or discharge of any obligation evidenced or
secured by this Agreement or any other Credit Document, (b) limit the right of
the Administrative Agent or any Lender to name the Borrower as a party defendant
in any action or suit for judicial foreclosure and sale under any Security
Document, or (c) affect in any way the validity or enforceability of any
guaranty (whether of payment and/or performance) given to the Lessor, the
Administrative Agent or the Lenders, or of any indemnity agreement given by the
Borrower, in connection with the Loans made hereunder.

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

          IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND CONTRACT IN
STRICT COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT.  TO THE
EXTENT ANY PAYMENTS HEREUNDER ARE HEREINAFTER CHARACTERIZED BY ANY COURT OF
COMPETENT JURISDICTION AS THE REPAYMENT OF PRINCIPAL AND INTEREST THEREON, THIS
SECTION 9.19 SHALL APPLY.  ANY SUCH PAYMENTS SO CHARACTERIZED AS INTEREST MAY BE
REFERRED TO HEREIN AS "INTEREST."  ALL AGREEMENTS AMONG THE PARTIES HERETO ARE
HEREBY LIMITED BY THE PROVISIONS OF THIS PARAGRAPH WHICH SHALL OVERRIDE AND
CONTROL ALL SUCH AGREEMENTS, WHETHER NOW EXISTING OR HEREAFTER ARISING AND
WHETHER WRITTEN OR ORAL.  IN NO WAY, NOR IN ANY EVENT OR CONTINGENCY (INCLUDING,
BUT NOT LIMITED TO, PREPAYMENT OR ACCELERATION OF THE MATURITY OF ANY
OBLIGATION), SHALL ANY INTEREST TAKEN, RESERVED, CONTRACTED FOR, CHARGED, OR
RECEIVED UNDER THIS AGREEMENT OR OTHERWISE, EXCEED THE MAXIMUM NONUSURIOUS
AMOUNT PERMISSIBLE UNDER APPLICABLE LAW.  IF, FROM ANY POSSIBLE CONSTRUCTION OF
ANY OF THE OPERATIVE AGREEMENTS OR ANY OTHER DOCUMENT OR AGREEMENT, INTEREST
WOULD OTHERWISE BE PAYABLE IN EXCESS OF THE MAXIMUM NONUSURIOUS AMOUNT, ANY SUCH
CONSTRUCTION SHALL BE SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH AND SUCH
AMOUNTS UNDER SUCH DOCUMENTS OR AGREEMENTS SHALL BE AUTOMATICALLY REDUCED TO THE
MAXIMUM NONUSURIOUS AMOUNT PERMITTED UNDER APPLICABLE LAW, WITHOUT THE NECESSITY
OF EXECUTION OF ANY AMENDMENT OR NEW DOCUMENT OR AGREEMENT.  IF THE AGENT OR ANY
LENDER SHALL EVER RECEIVE ANYTHING OF VALUE WHICH IS

                                       38
<PAGE>

CHARACTERIZED AS INTEREST WITH RESPECT TO THE OBLIGATIONS OWED HEREUNDER OR
UNDER APPLICABLE LAW AND WHICH WOULD, APART FROM THIS PROVISION, BE IN EXCESS OF
THE MAXIMUM LAWFUL AMOUNT, AN AMOUNT EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN
EXCESSIVE INTEREST SHALL, WITHOUT PENALTY, BE APPLIED TO THE REDUCTION OF THE
COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL AND NOT TO THE PAYMENT OF INTEREST,
OR REFUNDED TO BORROWER OR ANY OTHER PAYOR THEREOF, IF AND TO THE EXTENT SUCH
AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE EXCEEDS THE COMPONENT OF PAYMENTS DEEMED
TO BE PRINCIPAL. THE RIGHT TO DEMAND PAYMENT OF ANY AMOUNTS EVIDENCED BY ANY OF
THE OPERATIVE AGREEMENTS DOES NOT INCLUDE THE RIGHT TO RECEIVE ANY INTEREST
WHICH HAS NOT OTHERWISE ACCRUED ON THE DATE OF SUCH DEMAND, AND NEITHER THE
AGENT NOR ANY LENDER INTENDS TO CHARGE OR RECEIVE ANY UNEARNED INTEREST IN THE
EVENT OF SUCH DEMAND. ALL INTEREST PAID OR AGREED TO BE PAID TO THE AGENT OR ANY
LENDER SHALL, TO THE EXTENT PERMITTED BY APPLICABLE LAW, BE AMORTIZED, PRORATED,
ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED TERM (INCLUDING ANY RENEWAL OR
EXTENSION) OF THIS AGREEMENT SO THAT THE AMOUNT OF INTEREST ON ACCOUNT OF SUCH
PAYMENTS DOES NOT EXCEED THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED BY APPLICABLE
LAW.

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

                                       39
<PAGE>

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

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

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

                          [Signature pages continue]
<PAGE>

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

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

                          [Signature pages continue]
<PAGE>

                              FIRST NATIONAL BANK OF CHICAGO, as a Lender

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

                          [Signature pages continue]
<PAGE>

                              BARCLAYS BANK PLC, as a Lender

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

                          [Signature pages continue]
<PAGE>

                              FIRST UNION NATIONAL BANK, as a Lender

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

                          [Signature pages continue]
<PAGE>

                              KBC BANK N.V., as a Lender

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

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

                          [Signature pages continue]
<PAGE>

                              CREDIT LYONNAIS - NY BRANCH, as a Lender

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

                          [Signature page continues]
<PAGE>

                              BMO GLOBAL CAPITAL SOLUTIONS, INC., as a Lender

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

                          [Signature page continues]
<PAGE>

                              BANK OF MONTREAL, as a Lender

                              By: /s/ Kanu Modi
                                  ------------------------
                              Name: Kanu Modi
                                    ----------------------
                              Title: Director
                                     ---------------------

                             [Signature pages end]
<PAGE>

                                 Schedule 1.1
                                 ------------

<TABLE>
<CAPTION>
                                                           Tranche A                    Tranche B
                                                          Commitment                    Commitment
                                                  ---------------------------    --------------------------
Name and Address of Lender                            Amount      Percentage        Amount      Percentage
--------------------------                        -------------  ------------    -----------   ------------
<S>                                               <C>            <C>             <C>           <C>
Bank of America, N.A.                             $5,114,825.58     20.0581%     $608,091.09      18.1520%
901 Main Street, 66th Floor
Dallas, TX  75202
Attn: Shelly K. Harper, Vice President
Telephone:  214-209-0567
Facsimile:  214-209-0604

First National Bank of Chicago                    $   3,187,500     12.5000%     $   418,750      12.5000%
1 First National Plaza, Suite 0155
Chicago, IL  60670
Attn: R. Eric Weidelman
Telephone: 312-732-5294
Facsimile: 312-732-6222

Barclays Bank PLC                                 $   3,187,500     12.5000%     $   418,750      12.5000%
222 Broadway
New York, NY 10038
Attn: Richard Herder
Telephone: 212-412-7660
Facsimile: 212-412-5610

First Union National Bank                         $   3,187,500     12.5000%     $   418,750      12.5000%
7 N. 8th Street, VA  3246
Richmond, VA 23219
Attn: Carrie H. McAllister, Vice President
Telephone: 804-771-7294
Facsimile: 804-771-7577

KBC Bank, N.V. - Atlanta Rep. Office              $3,286,337.21     12.8876%     $463,662.79      13.8407%
1349 W. Peachtree St., Suite 1750
Atlanta, GA 30309
Attn: Jackie Brunetto, Vice President
Telephone: 404-876-2566
Facsimile: 404-876-3212

Credit Lyonnais - NY Branch                       $3,286,337.21     12.8876%     $463,662.79      13.8407%
1301 6th Avenue
New York, NY 10019
Attn: Jay Buckley, Vice President
Telephone: 212-261-7430
Facsimile: 212-261-3401
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                           Tranche A                    Tranche B
                                                          Commitment                    Commitment
                                                  ---------------------------    --------------------------
Name and Address of Lender                            Amount      Percentage        Amount      Percentage
--------------------------                        -------------  ------------    -----------   ------------
<S>                                               <C>            <C>             <C>           <C>
Bank of Montreal                                    $ 4,250,000      16.6667%    $      0.00       0.0000%
115 S. LaSalle St., 12th Floor
Chicago, IL 60603
Attn: Kanu Modi, Director
Telephone: 312-750-3891
Facsimile: 312-756-6057

BMO Global Capital Solutions                        $      0.00       0.0000%    $558,333.33      16.6667%
115 S. LaSalle St., 13th Floor
Chicago, IL 60603
Attn: Doug Deal
Telephone: (312) 845-2074
Facsimile: (312) 750-1790

Total                                               $25,500,000          100%    $  3,350,000         100%
</TABLE>
<PAGE>

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

                                TRANCHE A NOTE
                         (Capital One Services, Inc.)

$______________                                                  _______________
                                                                 _______________

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

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

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

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

                                       1
<PAGE>

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

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

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

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

                                       2
<PAGE>

     IN WITNESS WHEREOF, the undersigned authorized officer of the borrower has
executed this note as of the date first set forth above.

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

                              By:_____________________________
                              Name:___________________________
                              Title:__________________________

                                       3
<PAGE>

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

                                TRANCHE B NOTE
                         (Capital One Services, Inc.)

$______________                                                  _______________
                                                                 _______________

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>

     IN WITNESS WHEREOF, the undersigned authorized officer of the borrower has
executed this note as of the date first set forth above.

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

                               By:_____________________________________
                               Name:___________________________________
                               Title:__________________________________

                                      -3-
<PAGE>

                                                                       Exhibit B
                                                                       ---------

                           ASSIGNMENT AND ACCEPTANCE

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

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

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

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

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

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

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

     Upon such acceptance and recording, from and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the
Assignee whether such amounts have accrued prior to the Effective Date or accrue
subsequent to the Effective Date.  The Assignor and the Assignee shall make all
appropriate adjustments in payments by the Administrative Agent for periods
prior to the Effective Date or with respect to the making of this assignment
directly between themselves.

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

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

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

                                      -2-
<PAGE>

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

                              [Name of Assignor]

                              By:__________________________________
                              Name:________________________________
                              Title:_______________________________

                              [Name of Assignee]

                              By:__________________________________
                              Name:________________________________
                              Title:_______________________________

Consented To:

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

By:__________________________________
Name:________________________________
Title:_______________________________

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

By:__________________________________
Name:________________________________
Title:_______________________________

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

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

Name of Assignor:_________________________

Name of Assignee:_________________________

Effective Date of Assignment:_____________

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

       ---------------          $----------------        ----------------------%

       [Name of Assignor]

       By:__________________________________
       Name:________________________________
       Title:_______________________________

       [Name of Assignee]

       By:__________________________________
       Name:________________________________
       Title:_______________________________

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