Document:

Exhibit
10.19

 

LOAN AGREEMENT

 

Dated: As of August 11,
2006

 

Between

 

STAG III ALBION, LLC

 

 (individually and collectively, together with
each other party who may become a borrower hereunder,  “Borrower”,)

 

and

 

ANGLO IRISH BANK CORPORATION
PLC (“Agent”)

 

and

 

any other Lenders, if any,
which may become parties to this Agreement

(together with ANGLO IRISH
BANK CORPORATION PLC, collectively the “Lenders”)

 

up to $300,000,000.00  TERM LOAN

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  BACKGROUND

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Defined Terms

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  Borrower

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3

  	
  Land and Improvements; Property

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4

  	
  Use of Loan Proceeds

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.5

  	
  Guaranties and Indemnities

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.6

  	
  Loan

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  LOAN PROVISIONS

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Amount of Loan

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Term of Loan; Extension Right

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  Interest Rate and Payment Terms

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  Loan Fees

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  Acceleration

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  Conditions to Extending Loan

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  Additional Property/Borrower

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.8

  	
  Joint and Several

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  SECURITY FOR THE LOAN; LOAN AND SECURITY DOCUMENTS

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Security

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Loan Documents and Security Documents

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  CONTINUING AUTHORITY OF AUTHORIZED REPRESENTATIVES

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  CONSULTANTS

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Right to Employ

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Functions

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  Payment

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  Access

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
  No Liability

  	
  7

  

 

i

 

	
  6.

  	
  LOAN DISBURSEMENT AND BORROWER’S REQUIRED EQUITY
  CONTRIBUTIONS

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Advance of Loan Proceeds

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Required Equity Contribution; Additional Funds From
  Borrower

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  CONDITIONS PRECEDENT

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Satisfactory Loan Documents

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2

  	
  No Material Change

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.3

  	
  Warranties and Representations Accurate

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.4

  	
  Financials and Appraisals

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.5

  	
  Validity and Sufficiency of Security Documents

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.6

  	
  No Other Liens; Taxes and Municipal Charges Current

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.7

  	
  Property Matters

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.8

  	
  Compliance With Law

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.9

  	
  Title Insurance; other Evidence of Perfection

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.10

  	
  Survey

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.11

  	
  Condition of Property

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.12

  	
  No Takings

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.13

  	
  Insurance

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.14

  	
  Utilities; Water; Drainage

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.15

  	
  Hazardous Waste, Hazardous Materials and Toxic
  Substances

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.16

  	
  Organizational Documents and Entity Agreements

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.17

  	
  Votes, Consents and Authorizations

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.18

  	
  Legal and Other Opinions

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.19

  	
  Leasing Matters

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.20

  	
  Zoning Compliance

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.21

  	
  No Default

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  WARRANTIES AND REPRESENTATIONS

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Financial Information

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  No Violations

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  No Litigation

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Leases

  	
  11

  

 

ii

 

	
   

  	
  8.5

  	
  Compliance With Legal Requirements

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.6

  	
  Required Licenses and Permits

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.7

  	
  Curb Cuts and Utility Connections

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.8

  	
  Good Title and No Liens

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.9

  	
  Use of Proceeds

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.10

  	
  Entity Matters

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.11

  	
  Valid and Binding

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.12

  	
  Deferred Compensation and ERISA

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.13

  	
  No Material Change; No Default

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.14

  	
  No Broker or Finder

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.15

  	
  Background Information and Certificates

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.16

  	
  Guarantor’s Warranties and Representations

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  COVENANTS

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Notices

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2

  	
  Financial Statements and Reports

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.3

  	
  Payment of Taxes and Other Obligations

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.4

  	
  Conduct of Business; Compliance With Law

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.5

  	
  Insurance

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.6

  	
  Restrictions on Liens, Transfers and Additional Debt

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.7

  	
  Limits on Guaranties and Distributions

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.8

  	
  Restrictions on Investments

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.9

  	
  Indemnification Against Payment of Brokers’ Fees

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.10

  	
  Limitations On Certain Transactions

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.11

  	
  Approval of Management and Management Contract

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.12

  	
  RESERVED

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.13

  	
  Place for Records: Inspection

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.14

  	
  Costs and Expenses

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.15

  	
  Compliance with Legal Requirements

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.16

  	
  Indemnification

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.17

  	
  Leasing Matters

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.18

  	
  Loan To Value Ratio Covenant

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.19

  	
  Debt Service Coverage Ratio

  	
  23

  

 

iii

 

	
   

  	
  9.20

  	
  Replacement Documentation

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.21

  	
  Partial Release

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  SPECIAL PROVISIONS

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Right to Contest

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.2

  	
  Limited Recourse Provisions

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  EVENTS OF DEFAULT

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Default and Events of Default

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.2

  	
  Grace Periods and Notice

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.3

  	
  Certain Remedies. If an Event of Default shall
  occur:

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  ADDITIONAL REMEDIES

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Remedies

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.2

  	
  Reimbursement

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.3

  	
  Power of Attorney

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  SECURITY INTEREST

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Security Interest

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  CASUALTY AND TAKING

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  Casualty and Obligation To Repair

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.2

  	
  Adjustment of Claims

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.3

  	
  Payment and Application of Insurance Proceeds

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.4

  	
  Conditions To Release of Insurance Proceeds

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.5

  	
  Taking

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  THE AGENT AND THE LENDERS

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.1

  	
  Appointment of Agent

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.2

  	
  Administration of Loans by Agent

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.3

  	
  Delegation of Duties

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.4

  	
  Exculpatory Provisions

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.5

  	
  Reliance by Agent

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.6

  	
  Notice of Default

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.7

  	
  Lenders’ Credit Decisions

  	
  35

  

 

iv

 

	
   

  	
  15.8

  	
  Agent’s Reimbursement and Indemnification

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.9

  	
  Agent in its Individual Capacity

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.10

  	
  Successor Agent

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.11

  	
  Duties in the Case of Enforcement

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.12

  	
  Respecting Loans and Payments

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.13

  	
  Delinquent Lender

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.14

  	
  Holders

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.15

  	
  Assignment and Participation

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.16

  	
  Disclosure

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.17

  	
  Miscellaneous Assignment Provisions

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.18

  	
  Assignment by Borrower

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.19

  	
  Administrative Matters

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.20

  	
  Deemed Consent or Approval

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  GENERAL PROVISIONS

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.1

  	
  Notices

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.2

  	
  Limitations on Assignment

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.3

  	
  Further Assurances

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.4

  	
  Parties Bound

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.5

  	
  Waivers, Extensions and Releases

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.6

  	
  Governing Law; Consent to Jurisdiction; Mutual
  Waiver of Jury Trial

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.7

  	
  Survival

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.8

  	
  Cumulative Rights

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.9

  	
  Claims Against Agent or the Lenders

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.10

  	
  Obligations Absolute

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.11

  	
  Table of Contents, Title and Headings

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.12

  	
  Counterparts

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.13

  	
  Satisfaction of Commitment

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.14

  	
  Time Of the Essence

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.15

  	
  Integration/No Oral Change

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.16

  	
  Monthly Statements

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.17

  	
  Survival

  	
  50

  

 

v

 

	
  Signatures

  	
   

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Definitions

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Ownership Interests and Taxpayer Identification Numbers

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Authorized Representatives

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Required Property, Hazard and Other Insurance

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Form of Assignment and Acceptance

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Lenders’ Commitment

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Note

  	
  67

  

 

vi

 

LOAN AGREEMENT

 

This Loan Agreement (“Loan Agreement” or “Agreement”)
made and entered into as of the 11th day of August, 2006, by and between STAG
III ALBION, LLC, a Delaware limited liability company having an address at c/o
STAG Capital Partners, 99 Chauncy Street, 10th floor, Boston, Massachusetts
02111 (individually and/or collectively, as the context so requires, together
with each other party who may hereafter become a borrower hereunder, the “Borrower”)
and ANGLO IRISH BANK CORPORATION PLC, a banking corporation having an address
at 265 Franklin Street, Boston, Massachusetts 02110 and the other lending
institutions which may become parties to this Agreement pursuant to Section 15.15
hereof (collectively the “Lenders”) and ANGLO IRISH BANK CORPORATION PLC, as
agent for itself and such other lending institutions (the “Agent”).

 

WITNESSETH:

 

1.                                       BACKGROUND.

 

1.1                                              Defined Terms.  Capitalized terms used in this Agreement are
defined either in Exhibit A, or in specific sections of this
Agreement, or in another Loan Document, as referenced in Exhibit A.

 

1.2                                              Borrower.  Each Borrower is a limited liability company
organized under the laws of the State of Delaware, whose sole member and
manager is STAG Investments Holdings III, LLC, a Delaware limited liability
company (hereinafter, “STAG III”).  The
sole member and manager of STAG III is SAgE III Aggregation, LLC, a Delaware
limited liability company (hereinafter “SAgE”).

 

1.3                                              Land and
Improvements; Property.  A
respective Borrower (or an affiliate of the Borrower) has acquired or proposes to acquire, among other Properties,
the following described parcels of land:

 

1.3.1                                                 the parcels of
land (the “Milwaukee Land”) located in Milwaukee, Wisconsin more particularly
described in the Mortgage, which Milwaukee Land is presently improved by a
270,000 warehouse/distribution facility with associated parking (the “Milwaukee
Improvements”).  The Milwaukee Land and
Milwaukee Improvements are collectively called the “Milwaukee Property”; and

 

1.3.2                                                 the parcels of
land (the “Kendallville Land”) located in Kendallville, Indiana and Albion, Indiana
more particularly described in the Mortgage, which Kendallville Land is
presently improved by a 294,253 manufacturing facility with associated parking
(the “Kendallville Improvements”).  The
Kendallville Land and Kendallville Improvements are collectively called the “Kendallville
Property”.

 

(The Milwaukee Land and the
Kendallville Land (in each instance, to the extent same are made subject to the
lien of the Security Documents), together with any other land which hereafter
is made subject to the lien of the Security Documents as set forth in Section 2.7,  are sometimes hereinafter referred to
collectively as the “Land”; the Milwaukee Improvements and the Kendallville
Improvements (in each instance, to the extent same 

 

 

are made subject to the lien
of the Security Documents), together with any other improvements which is
hereafter made subject to the lien of the Security Documents as set forth in Section 2.7,
are sometimes hereinafter referred to collectively as the “Improvements”; and
the Milwaukee Property and the Kendallville Property (in each instance, to the
extent same are made subject to the lien of the Security Documents), together
with any other property which is hereafter made subject to the lien of the
Security Documents as set forth in Section 2.7, are sometimes hereinafter
referred to collectively as the “Property”).

 

1.4                                              Use of Loan
Proceeds.  Borrower
has applied to Agent for loans up to the maximum aggregate amount of THREE
HUNDRED MILLION DOLLARS ($300,000,000.00) (each, a “Loan” and collectively, the
“Loans”), a portion of the proceeds of which are to be used to acquire  the
Kendallville Property and to pay costs and expenses incident to closing
the Loans, and the remainder of which may, under Section 2.7 below, be
used to acquire additional Properties, including, without limitation the
Milwaukee Property.

 

1.5                                              Guaranties and
Indemnities.  As an
inducement to Agent and the Lenders to make the Loans, STAG Investments
Holdings III, LLC (in such capacity, “Guarantor”) has agreed to furnish certain
guaranties and indemnities.

 

1.6                                              Loan.  Subject to all of the terms, conditions and
provisions of this Agreement, and of the agreements and instruments referred to
herein, each of the Lenders agrees severally to make loans to the Borrower up
to a maximum aggregate principal amount equal to such Lender’s Commitment, and
each Borrower agrees to accept and jointly and severally repay the Loans.

 

2.                                       LOAN PROVISIONS.

 

2.1                                              Amount of Loan.  The Loans shall be in the maximum aggregate
amount of $300,000,000.00; however, any advances of proceeds of the Loans shall
be made by the Lenders pro rata, in accordance with each Lender’s Commitment
Percentage.  The amounts available to be
advanced for each Property shall be limited to the lesser of (i) seventy
five percent (75%) of the acquisition cost of each such Property,  or (ii) the amount determined to be
advanced by the Lenders (as to each Property, its “Loan Amount”).

 

2.2                                              Term of Loan;
Extension Right.  The Loans
shall be for a term (“Initial Term”) commencing on the date hereof and ending
on August 11, 2009 (“Maturity Date”). 
The Initial Term may be extended for an “Extended Term” until August 11,
2010 (“Extended Maturity Date”) upon satisfaction of the conditions set forth
in Section 2.6.

 

2.3                                              Interest Rate
and Payment Terms.  The Loans
shall be payable as to interest and principal in accordance with the provisions
of this Agreement and the Note.  This Agreement
also provides for interest at a Default Rate, Late Charges and prepayment
rights and fees.  All payments for the
account of Lenders shall be applied to the respective accounts of the Lenders
in accordance with each Lender’s Commitment Percentage of the Loans.  The Agent will disburse such payments to the
Lenders on the date of receipt thereof if received prior to 11:00 a.m. on
such date and, if not, on the next Business Day.  Any and all interest rate selection and
conversion provisions in this Agreement are to be administered by the Agent and
to be allocated 

 

2

 

on a pro rata basis to the
Note held by each Lender based upon such Lender’s Commitment Percentage.

 

2.4                                              Loan Fees.  Borrower shall pay a commitment fee equal to
50 basis points of each Loan Amount in connection with the advance of each Loan
Amount made under the Loan.

 

2.5                                              Acceleration.  The Agent may, and upon the request of the
Majority Lenders shall, accelerate the Loans, during the continuance of an
Event of Default.  Upon such an
acceleration, all principal, accrued interest and costs and expenses shall be
due and payable together with interest on such principal at the Default Rate and any applicable Make Whole Provisions and
Yield Maintenance Prepayment Fee.

 

2.6                                              Conditions to
Extending Loan.  Upon
satisfaction of each of the following conditions, Borrower may extend the Loans
until the Extended Maturity Date:

 

2.6.1                                                 No Default.  No Default shall exist;

 

2.6.2                                                 Notice From
Borrower.  Borrower
shall have given Agent and the Lenders written notice of Borrower’s request to
exercise its extension right at least sixty (60) days, but not more than one
hundred twenty (120) days, before the Maturity Date;

 

2.6.3                                                 Covenant
Compliance.  No breach
of any covenants imposed upon Borrower shall exist including, without
limitation, the covenants relating to Debt Service Coverage and Loan To Value
Ratio;

 

2.6.4                                                 Conditions
Satisfied.  All of the
conditions set forth in §7 of this Agreement, to the extent applicable, shall
continue to be satisfied;

 

2.6.5                                                 Extension Fee.  A extension fee equal to 12.5 basis points of
the aggregate outstanding principal balance of the Loans as of the extension of
the term shall have been paid at least five (5) days prior to the Maturity
Date;

 

2.6.6                                                 Additional
Documents.  Borrower
and Guarantor shall have executed and delivered to Agent such agreements and
documents as the Agent may reasonably require incident to the extension as long
as such agreements or documents do not materially increase Borrower’s or
Guarantor’s obligations under the Loan Documents; and

 

2.6.7                                                 Before End of
Term.  Each of the foregoing
conditions are satisfied not later than, and on, the Maturity Date.

 

Within thirty (30) days following receipt by the Agent and each of the
Lenders of Borrower’s written notice under clause 2.6.2 above requesting the
extension, the Agent shall notify Borrower in writing if all of the conditions
precedent to the extension, other than payment of the extension fee, have been
satisfied, or if further information or certificates are required.  If the Agent determines that the conditions
to extension have been satisfied, other than payment of the extension fee, the
Agent shall so notify Borrower and upon the Agent’s receipt of the extension
fee not later than five (5) days prior to the Maturity Date, so long as no
Default exists, the Loan 

 

3

 

Term shall be extended until the Extended Maturity Date.

 

2.7                                              Additional
Property/Borrower.  At the
request of the Borrower, the Lenders will advance additional amounts hereunder,
not to exceed the Loan Amount for each Property, and, as necessary, consider
the increase of the maximum Commitment amount and the acceptance of additional
affiliate(s) of the Borrower as a new Borrower(s), and the granting of
additional Properties as collateral hereunder, on the following terms and
conditions:

 

2.7.1                                                 The acceptance
of the affiliate as a Borrower and the new Property as Collateral, and the
amount of the additional Loans to be provided with respect thereto, shall be in
the sole discretion of the Agent and the Lenders, and shall be subject to such
terms and conditions as the Agent and the Lenders may impose;

 

2.7.2                                                 The Borrower
shall supply the Agent with such financial information as the Agent may require
with respect to the new Property and the new Borrower;

 

2.7.3                                                 The Borrower
and such affiliate shall execute such documents as the Agent may request to
effect such transaction, including (a) the execution of Security Documents
with respect to such new Property and a joinder by such affiliate becoming a
party to this Loan Agreement, and (b) an amendment to, or an amendment and
restatement of, the Note, as necessary, to reflect such advances; and

 

2.7.4                                                 The Agent shall
have received and approved all due diligence and other items required with
respect to any Property pursuant to Section 7 of this Loan Agreement, and
shall have otherwise satisfied the conditions of said Section 7 hereof.

 

2.8                                              Joint and
Several.

 

2.8.1                                                 Notwithstanding
anything in this Agreement or any other Loan Document to the contrary, each
Borrower hereby accepts (or shall accept) joint and several liability hereunder
and under the other Loan Documents in consideration of the financial
accommodations to be provided by the Lender under this Agreement and the other
Loan Documents, for the mutual benefit, directly and indirectly, of each
Borrower and in consideration of the undertakings of each other Borrower to
accept joint and several liability for the Loan and the other Obligations
hereunder.  Each Borrower, jointly and
severally, hereby irrevocably and unconditionally accepts (or shall accept),
not merely as a surety but also as a co-debtor, joint and several liability
with each other Borrower, with respect to the payment and performance of all of
the Obligations (including, without limitation, any Obligations arising under
this Section 2.8, it being the intention of the parties hereto that all the
Obligations shall be the joint and several obligations of each Borrower without
preferences or distinction among them. 
If and to the extent that any Borrower shall fail to make any payment
with respect to any of the Obligations as and when due or to perform any of the
Obligations in accordance with the terms thereof, then in each such event each
other Borrower will make such payment with respect to, or perform, such
Obligation.  Subject to the terms and
conditions hereof, the Obligations of each Borrower under the provisions of
this Section 2.8 constitute the absolute and unconditional, full recourse
Obligations of each Borrower enforceable against each such person to the full
extent of its properties and assets, irrespective of the 

 

4

 

validity, regularity or enforceability
of this Agreement, the other Loan Documents or any other circumstances
whatsoever.

 

2.8.2                                                 The provisions
of this Section 2.8 are made for the benefit of the Agent, the Lender and
their successors and assigns, and may be enforced by them from time to time
against any Borrower as often as occasion therefor may arise and without
requirement on the part of the Agent, the Lender or such successors or assigns
first to marshall any of its or their claims or to exercise any of its or their
rights against any other Borrower or to exhaust any remedies available to it or
them against any other Borrower or to resort to any other source or means of
obtaining payment of any of the Obligations hereunder or to elect any other
remedy.  The provisions of this Section 2.8
shall remain in effect until all of the Obligations shall have been paid in
full or otherwise fully satisfied.

 

2.8.3                                                 Each Borrower
hereby agrees that it will not enforce any of its rights of contribution or
subrogation against any other Borrower with respect to any liability incurred
by it hereunder or under any of the other Loan Documents, any payments made by
it to the Agent or the Lenders with respect to any of the Obligations or any
Collateral until such time as all of the Obligations have been paid in
full.  Any claim which any Borrower may
have against another Borrower with respect to any payments to the Agent or the
Lenders hereunder or under any other Loan Documents are hereby expressly made
subordinate and junior in right of payment, without limitation as to any
increases in the Obligations arising hereunder or thereunder, to the prior
payment in full of the Obligations and, in the event of any insolvency,
bankruptcy, receivership, liquidation, reorganization or other similar
proceeding under the laws of any jurisdiction relating to any Borrower, its
debts or its assets, whether voluntary or involuntary, all such Obligations
shall be paid in full before any payment or distribution of any character,
whether in cash, securities or other property, shall be made to another
Borrower therefor.

 

3.                                       SECURITY FOR
THE LOAN; LOAN AND SECURITY DOCUMENTS.

 

3.1                                              Security.  The Loans together with interest thereon and
all other charges and amounts payable by, and all other obligations of,
Borrower and Guarantor to Agent
and each of the Lenders, with respect to each Property, whenever incurred,
direct or indirect, absolute or contingent, including any obligations under any
interest rate cap, swap or other rate management transaction entered into with
the Agent (“Obligations”) shall be secured by the following “Security” which
Borrower, and Guarantor where applicable, agree to provide and maintain:

 

3.1.1                                                 Mortgage/Deed and Security Agreement.  A first priority mortgage/deed of trust and security agreement (“Mortgage”)
granted to the Agent, on behalf of the Lenders, on (i) each Property; (ii) all
land, improvements, furniture, fixtures, goods, equipment, and other assets
(including, without limitation, accounts, contracts, contract rights, Licenses
and Permits, general intangibles, documents and instruments), including all
after-acquired property, owned, or in which Borrower has or obtains any
interest, in connection with each Property; (iii) all insurance proceeds
and other proceeds therefrom, and (iv) all other assets of each Borrower
whether now owned or hereafter acquired and whether or not related to the Property.

 

5

 

3.1.2                                                 Collateral
Assignment of Leases and Rents.  A first priority collateral assignment of
leases and rents (“Assignment of Leases and Rents”) granted to the Agent on
behalf of the Lenders, with respect to each Borrower’s interest in all leases,
subleases and occupancy rights of the Property and all income and profits to be
derived from the operation and leasing of the Property.

 

3.1.3                                                 Collateral
Assignment of Contracts, Licenses and Permits.  A first priority collateral assignment and
security agreement (“Assignment of Contracts”) granted to the Agent on behalf
of the Lenders, with respect to each Borrower’s interest in all Licenses and
Permits and all contracts, agreements and warranties now owned or hereafter
acquired by a Borrower and related in any manner to the Property.

 

3.1.4                                                 Guaranty.  A guaranty (“Guaranty”) from Guarantor
guaranteeing certain exculpating matters.

 

3.1.5                                                 Environmental
Compliance and Indemnification Agreement.  At Borrower’s election, either (i) an
environmental insurance policy naming Borrower as the named insured and Lender
as an additional named insured, in form and substance reasonably acceptable to
Lender, or (ii) a compliance and indemnification agreement with respect to
environmental matters (“Environmental Indemnity”) from Borrower and Guarantor
(collectively, “Indemnitors”).

 

3.2                                              Loan Documents
and Security Documents.  The
Loans shall be made, evidenced, administered, secured and governed by all of
the terms, conditions and provisions of the “Loan Documents”, each as the same
may be hereafter modified or amended, consisting of: (i) this Loan
Agreement; (ii) separate promissory notes in the form of Exhibit G,
annexed hereto, with one Note being payable to each Lender in the original
principal amount equal to such Lender’s Commitment, such promissory notes to be
in the aggregate original principal amount of up to THREE HUNDRED MILLION
DOLLARS ($300,000,000.00) (together with any additional Notes delivered as
provided herein, and as same may be hereafter amended and/or restated, the “Note”);
(iii) the Mortgage, (iv) UCC financing statements; (v) the
Assignment of Leases and Rents; (vi) the Assignment of Contracts, Licenses
and Permits; (vii) the Guaranty from Guarantor; and (viii) the
environmental insurance policy or Environmental Indemnity from Borrower and
Guarantor, as applicable.

 

Each of the Loan Documents listed in items (i) through
(ix), inclusive is dated of even date herewith. 
The Mortgage, Assignment of Leases and Rents, Assignment of Contracts,
Licenses and Permits, UCC Financing Statements, Environmental Indemnity and
Guaranty are sometimes collectively referred to as the “Security Documents”.

 

4.                                       CONTINUING
AUTHORITY OF AUTHORIZED REPRESENTATIVES.  Agent and each of the Lenders is authorized
to rely upon the continuing authority of the persons, officers, signatories or
agents hereafter designated (“Authorized Representatives”) to bind Borrower
with respect to all matters pertaining to the Loans and the Loan Documents
including, but not limited to, the selection of interest rates.  Such authorization may be changed only upon
written notice to Agent accompanied by evidence, reasonably satisfactory to
Agent, of the authority of the person giving such notice and such notice shall
be effective not sooner than five 

 

6

 

(5) Business Days
following receipt thereof by Agent.  The
present Authorized Representatives are listed on Exhibit C.  Agent shall have a right of approval, not to
be unreasonably withheld or delayed, over the identity of the Authorized
Representatives so as to assure Agent and each of the Lenders that each
Authorized Representative is a responsible and senior official of Borrower.

 

5.                                       CONSULTANTS.

 

5.1                                              Right to Employ.  Agent shall have the right to employ its own
personnel, on its behalf and on behalf of the Lenders, or one or more
engineers, architects, builders or other construction specialists,
environmental advisors, scientists, accountants, and attorneys to act as an
advisor to Agent and the Lenders in connection with the Loans (each of which
shall be a “Lenders’ Consultant”).

 

5.2                                              Functions.  The functions of a Lenders’ Consultant shall
include, without limitation: (i) inspection and physical review of the
Property at the initial closing of the Loans and restoration of the Property
after casualty; (ii) review and analysis of any work to be done in
connection with the Property at the initial closing and/or funding of the
Loans, the restoration of the Property after casualty or in connection with the
exercise by the Agent of its rights and remedies during the existence of an
Event of Default; (iii) review and analysis of environmental matters at
the initial closing and/or funding of the Loans, in connection with an
environmental Event of Default or in connection with the exercise by the Agent
of its rights and remedies during the existence of an Event of Default; and (iv) review
and analysis of financial and legal matters in connection with the initial
closing and/or funding of the Loans and any partial releases under Section 9.21.

 

5.3                                              Payment.  The reasonable and actual costs and fees of
Lenders’ Consultants shall be paid by Borrower upon billing therefor.

 

5.4                                              Access.  Subject to the rights of tenants under any
Lease, any other occupants of the Property and Borrower’s right to be present
at all times, Borrower shall provide Lenders’ Consultants with continuing
access to all aspects of the Property and Borrower’s books and records related
thereto at reasonable times during the day and upon at least five (5) Business
Days’ prior written notice to Borrower.

 

5.5                                              No Liability.  Neither Agent nor any Lender nor any of
Lenders’ Consultants shall have liability to Borrower, Guarantor, or any third
party, on account of: (i) services performed by Lenders’ Consultant; (ii) any
failure or neglect by Lenders’ Consultant to properly perform services; or (iii) any
approval or disapproval of work, plans or other matters, provided nothing
contained herein shall be deemed a release of any such party of any claim or
liability arising from such party’s willful misconduct or any other act in the
nature of a tort claim.  Neither Agent
nor any Lender nor Lenders’ Consultant shall have any obligation regarding
proper performance of work related to the Property.  Borrower shall have no rights under or
relating to any agreement, report, or similar document prepared by any Lenders’
Consultant for Agent or the Lenders.

 

7

 

6.                                       LOAN
DISBURSEMENT AND BORROWER’S REQUIRED EQUITY CONTRIBUTIONS.

 

6.1                                              Advance of Loan
Proceeds.

 

6.1.1                                              The Lenders
shall, on the date of this Agreement, subject to compliance with all of the
other terms, conditions and provisions of this Agreement, make an initial
disbursement of the Loan proceeds in an amount equal to the Loan Amount of the
Kendallville Property.  Any advances of
proceeds of the Loans shall be made by the Lenders pro rata in accordance with
each Lender’s Commitment Percentage.

 

6.1.2                                                 At such time as
a Borrower desires to obtain a Loan hereunder for the acquisition of a
Property, it shall provide the Agent at least fifteen (15) days written notice
of such request.  The Lenders providing
of Loans for such acquisition shall be subject to (a) there be no Default
in existence at such time, (b) the Borrower’s investment of the determined
amount of the Required Equity Contribution for the acquisition of such
Property, and (c) the Borrower’s satisfaction of all conditions precedent
set forth Section 2.7 and Section 7 below with respect to the
Property being acquired.

 

6.2                                              Required Equity
Contribution; Additional Funds From Borrower.  Borrower agrees to make and maintain Borrower’s
“Required Equity Contribution” which shall consist of the initial contribution
necessary to complete the acquisition of each Property.

 

7.                                       CONDITIONS
PRECEDENT.  It shall be
a condition precedent of Lenders’ obligation to close and fund the Loans that
each of the following conditions (in each instance, as applicable to the
Property being acquired) precedent be satisfied in full (as determined by each
Lender in its discretion which discretion shall be exercised in good faith
having due regard for the advice of Lenders’ Consultants), unless specifically
waived in writing by all of the Lenders at or prior to closing and funding the
Loans, Lender’s funding of a Loan conclusively establishing the satisfaction or
waiver of each of the following conditions precedent as to such Loan, such
Borrower and such Property being acquired:

 

7.1                                              Satisfactory
Loan Documents.  Each of the
Loan Documents and Security Documents shall be satisfactory in form, content
and manner of execution and delivery to Agent and each of the Lenders and Agent’s
counsel.

 

7.2                                              No Material
Change.  No material adverse change
shall have occurred in the financial condition, business, affairs, operations
or control of Borrower, or Guarantor, since the date of their
respective financial statements most recently delivered to Agent.

 

7.3                                              Warranties and
Representations Accurate.  All
warranties and representations made by or on behalf of any of Borrower  or
Guarantor to Agent or any Lender shall be true, accurate and complete in all
material respects and shall not omit any material fact necessary to make the
same not misleading.

 

7.4                                              Financials and
Appraisals.  Agent and
each of the Lenders shall have received and approved: (i) financial
statements from Guarantor complying with the standards set forth in Section 9.2.;
and (ii) an appraisal of the subject Property from an appraiser acceptable
to Agent and each of the Lenders setting forth an appraised value of the
Property which results in the amount of the Loan being advanced being no
greater than 75% of the Appraised Value of the Property being acquired.

 

8

 

7.5                                              Validity and
Sufficiency of Security Documents.  The Mortgage and the other Security Documents
shall create a valid and perfected lien on the property described therein (“Collateral”)
and each of the Security Documents and related UCC filings shall have been duly
recorded and filed to the satisfaction of Agent, each of the Lenders and Agent’s
counsel.

 

7.6                                              No Other Liens;
Taxes and Municipal Charges Current.  The Collateral shall not be subject to any
liens or encumbrances, whether inferior or superior to the Loan Documents or
the Security Documents, except in respect of: (i) real estate taxes and
personal property taxes not yet due and payable; and (ii) Permitted Title
Exceptions, if any.  All real estate
taxes, personal property taxes and other municipal charges relating to any of
the Collateral shall be current.

 

7.7                                              Property
Matters.  Agent and each of the Lenders
shall have received and independently approved each of the following: (i) evidence
of Licenses and Permits for the subject Property sufficient to allow the
subject Property to be operated in the ordinary course of business; (ii) a
report from a Lenders’ Consultant to the effect that the subject Property is in
good repair and safe condition with no structural deficiencies and no material
need for repairs or replacements except in the ordinary course of business; (iii) a
detailed, current rent roll together with copies of all leases and lease
guaranties; and (iv) a copy of each Lease with a Major Tenant.

 

7.8                                              Compliance With
Law.  Agent and each of the Lenders
shall have received and independently approved evidence that:

 

7.8.1                                                 Present
Compliance.  All real
estate and tangible personal property constituting or intended to constitute
Collateral for the Loan complies with all applicable Legal Requirements and the
provisions of all applicable Licenses and Permits.

 

7.8.2                                                 No Prohibitions
or Violations.  There are
no applicable Legal Requirements which prohibit or adversely limit the use of
the subject Property for the purposes the same are intended for, nor is there
any outstanding and uncured violation of any applicable Legal Requirements.

 

7.8.3                                                 Licenses and
Permits.  All Licenses and Permits and
private approvals of every nature whatsoever, if any, which are reasonably
necessary in order to allow the operation of the subject Property as contemplated
by this Agreement and as needed under applicable Legal Requirements have been
duly and finally received with all appeal periods therefrom having elapsed,
with no appeal having been taken therefrom, and with no violations existing
under the terms thereof.

 

7.9                                              Title
Insurance; other Evidence of Perfection.  Agent shall have received: (i) a
mortgagee’s title insurance policy (and, as required by the Agent, an
endorsement to any existing policy) which meets Agent’s and each of the Lenders’
title insurance requirements previously furnished to Borrower to the reasonable
satisfaction of Agent, each of the Lenders and Agent’s counsel; and (ii) such
other evidence of the perfection of its security interests as Agent and its
counsel may reasonably require.

 

7.10                                        Survey.  Agent shall have received and approved a
current, on-site instrument survey of the subject Land containing a
certification thereon, or on a separate surveyor’s 

 

9

 

certificate, of a Registered
Land Surveyor reasonably acceptable to Agent which meets Agent’s survey
requirements previously furnished to Borrower.

 

7.11                                        Condition of
Property.  There shall
have been no material unrepaired or unrestored damage or destruction by fire or
otherwise to any of the real or tangible personal property comprising or
intended to comprise the Collateral.

 

7.12                                        No Takings.  Neither the subject Property nor any material
portion thereof shall have been taken by eminent domain nor shall there be any
written threat of such a taking.

 

7.13                                        Insurance.  Borrower shall have provided to Agent and
each of the Lenders with respect to the subject Property and the Collateral
evidence of: (i) insurance coverages which meet the property, hazard and
other insurance requirements set forth on Exhibit D of this Loan Agreement
to the satisfaction of Agent and Agent’s Consultants; and (ii) premiums for
such insurance have been paid current.

 

7.14                                        Utilities;
Water; Drainage.  Agent shall
have received reports addressed to Agent from qualified engineers satisfactory
to Agent that sanitary drinking water, sanitary sewer disposal systems, utility
and power connections and storm drainage adequate for the subject Property are
available as a matter of right and that all Licenses and Permits and contracts
therefor have been duly obtained or an endorsement to Lender’s title insurance
policy reasonably satisfactory to Lender with respect to such matters.

 

7.15                                        Hazardous
Waste, Hazardous Materials and Toxic Substances.  Agent and each of the Lenders shall have
received, and in its sole discretion approved, satisfactory reports addressed
to Agent and each of the Lenders from acceptable, qualified professionals
prepared in accordance with Agent’s protocols indicating the acceptability of
the environmental risk associated with the subject Property, addressing the
existence of any Hazardous Materials at, or which may affect, the subject
Property and the Property’s compliance with Environmental Legal Requirements.

 

7.16                                        Organizational
Documents and Entity Agreements.  Agent and each of the Lenders shall have
received and approved the organizational documents of the subject Borrower,
Guarantor, SAgE and of those entities who execute any documents on their
behalf.

 

7.17                                        Votes, Consents
and Authorizations.  Agent and
each of the Lenders shall have received and approved certified copies of all
partnership, entity and corporate votes, consents and authorizations as may be
reasonably required to evidence authority for: (i) funding the Loans and
the transactions contemplated hereby; (ii) providing continuing
authorization to designated persons to deal in all respects on behalf of
Borrower; and (iii) the execution of all Loan Documents.

 

7.18                                        Legal and Other
Opinions.  Agent and
each of the Lenders shall have received and approved legal opinion letters from
counsel representing Borrower and Guarantor which meet Agent’s and each of the
Lenders’ reasonable legal opinion requirements with respect to the due
execution and enforceability of the Loan Documents.

 

10

 

7.19                                        Leasing Matters.  Agent shall have received and approved a
current rent roll for the subject Property, complete copies of the Major
Leases, and a subordination and attornment
agreements from the Major Tenants for the subject Property.

 

7.20                                        Zoning
Compliance.  Agent shall
have received a zoning report regarding the subject Property from Planning and
Zoning Resource Corporation or another zoning review company proposed by
Borrower and approved by Agent, which report shall be in form and substance
acceptable to Agent, and which states the subject Property is in material
compliance with applicable zoning requirements.

 

7.21                                        No Default.  There shall not be any Default under any of
the Loan Documents or any Bridge Loan Default.

 

8.                                       WARRANTIES AND
REPRESENTATIONS.  Borrower
warrants and represents to Agent and each of the Lenders to Borrower’s
knowledge for the express purpose of inducing Lenders to enter into this
Agreement, to make the Loan, and to otherwise complete all of the transactions
contemplated hereby, that as of the date of this Agreement, upon the date each
Loan is funded and at all times thereafter that Loan funds are outstanding from
Lenders to Borrower until the Loans have been repaid and all obligations to
each of the Lenders have been satisfied as follows (with each representation
and warranty as to each Property becoming effective as of the date such
Property becomes collateral for the Loans):

 

8.1                                              Financial
Information.  True,
accurate and complete financial statements of Borrower and Guarantor have been delivered to Agent and each of the Lenders
and the same fairly present the financial condition of Borrower and Guarantor as of the dates thereof
and no material and adverse change has occurred in such financial condition
since the dates thereof.  All financial
statements of Borrower and Guarantor
hereafter furnished to Agent and each of the Lenders shall be true, accurate
and complete and shall fairly present the financial condition of Borrower and Guarantor as of the dates thereof.

 

8.2                                              No Violations.  The consummation of the Loans and the
subsequent payment and performance of the obligations evidenced and secured by
the Loan Documents by Borrower shall not constitute a material violation of, or
material conflict with, any law, order, regulation, contract, agreement or
organizational document to which Borrower or Guarantor is a party or by which
Borrower or Guarantor, or the property thereof, may be bound.

 

8.3                                              No Litigation.  There is no material litigation now pending,
or to the best of Borrower’s knowledge threatened, against Borrower or Guarantor which if adversely
decided could materially impair the ability of Borrower or Guarantor to pay and perform its material obligations hereunder
or under the other Loan Documents.

 

8.4                                              Leases.  True and complete copies of all leases of the
Property which are now in effect (and all guaranties thereof) have been
delivered to Agent.  Such leases have not
been further amended or changed in any respect and are in full force and
effect, enforceable in accordance with the terms thereof, subject, however, to
the terms of the Loan Documents.

 

11

 

8.5                                              Compliance With
Legal Requirements.  The
Property complies with, and shall continue to comply with, all material Legal
Requirements and any and all covenants, conditions, restrictions or other
matters which materially affect the Property.

 

8.6                                              Required
Licenses and Permits.  All
Licenses and Permits which are reasonably required in order to operate the
Property in the usual course of business have been duly and properly obtained,
and will remain in full force and effect, and have been, and shall be complied
with, in all material respects.

 

8.7                                              Curb Cuts and
Utility Connections.  All
required curb cuts, utility connections and Licenses and Permits therefor have
been duly obtained and are in full force and effect and all utility services as
reasonably required for water, gas, electric, telephone, sewer and storm
drainage and sanitary waste disposal are and shall be available as a matter of
right and to an extent adequate to serve the Property for their intended uses.

 

8.8                                              Good Title and
No Liens.  Each
Borrower is the lawful owner of the subject Property (or the ground lessee’s
interest therein) and of areas over, under or on which utility or passage
easements are required to make use of such Property and parking as contemplated
by the Loan Documents, and is and will be the lawful owner of such Property,
free and clear of all liens and encumbrances of any nature whatsoever, except
for the matters, if any, which are listed as Permitted Title Exceptions in the
Mortgage and subject to rights of contest pursuant to the Loan Documents.

 

8.9                                              Use of Proceeds.  The proceeds of the Loans shall be used
solely and exclusively for the purposes set forth in Section 1.4 and
payment of costs and expenses incurred in connection with the financing
provided by the Loans.  No portion of the
proceeds of the Loans shall be used directly or indirectly, and whether
immediately, incidentally or ultimately (i) to purchase or carry any
margin stock, or to extend credit to others for the purpose thereof, or to
repay or refund indebtedness previously incurred for such purpose, or (ii) for
any purpose which would violate or is inconsistent with the provisions of
regulations of the Board of Governors of the Federal Reserve System including,
without limitation, Regulations G, T, U and X thereof.

 

8.10                                        Entity Matters.

 

8.10.1                                           Organization.  Each Borrower is a duly organized validly
existing limited liability company in good standing under the laws of Delaware,
and is duly qualified in each jurisdiction where the Property owned by such
Borrower is situated and in each jurisdiction where the nature of its business
is such that qualification is required and has all requisite power and
authority to conduct its business and to own its property, as now conducted or
owned, and as contemplated by this Loan Agreement.

 

8.10.2                                           Ownership and
Taxpayer Identification Numbers.  All of the members of each Borrower, and a description of the ownership
interests and debts of Borrower
held by the same, are listed in Exhibit B and no additional ownership
interests, or rights or instruments convertible into such ownership interests,
shall be issued, nor shall any ownership change, except for Permitted
Transfers.  Identity and ownership of any
Guarantor which is not a natural person is accurately stated on Exhibit B.  The taxpayer 

 

12

 

identification number(s) of
each Borrower  and the Guarantor
are accurately stated in Exhibit B.

 

8.10.3                                           Authorization.  All required entity actions and proceedings have been duly taken so as to
authorize the execution and delivery by each Borrower and Guarantor of the Loan
Documents.

 

8.11                                        Valid and
Binding.  Each of the Loan Documents
constitute legal, valid and binding obligations of each Borrower and, where
applicable, Guarantor and each constitute legal, valid and binding obligations
of the parties thereto, in accordance with the respective terms thereof,
subject to bankruptcy, insolvency and similar laws of general application
affecting the rights and remedies of creditors and, with respect to the
availability of the remedies of specific enforcement, subject to the discretion
of the court before which any proceeding therefor may be brought.

 

8.12                                        Deferred
Compensation and ERISA. 
Borrower does not have any pension, profit sharing, stock option,
insurance or other arrangement or plan for employees covered by Title IV of the
Employment Retirement Security Act of 1974, as now or hereafter amended (“ERISA”)
except as may be designated to Agent in writing by Borrower from time to time (“ERISA
Plan”) and no “Reportable Event” as defined in ERISA has occurred and is now continuing
with respect to any such ERISA Plan.  The
granting of the Loans, the performance by each Borrower of its obligations
under the Loan Documents and each Borrower’s conducting of its operations do
not and will not violate any provisions of ERISA.

 

8.13                                        No Material
Change; No Default.  There has
been no material and adverse change in the financial condition, business,
affairs or control of any Borrower or Guarantor since the date of their
respective last financial statements most recently delivered to the Agent and
each of the Lenders in accordance with the requirements of Section 9.2.
hereof.  No Default exists under any of
the Loan Documents or any Major Lease in excess of 10,000 square feet in any
single instance, or in excess of 50,000 square feet in the aggregate. There is
no Default on the part of Borrower or
Guarantor under this Agreement or any of the other Loan Documents and no
event has occurred and is continuing which could constitute a Default under any
Loan Document.  Each Borrower has filed
all required federal, state and local tax returns and has paid all taxes due
pursuant to such returns or any assessments against a Borrower or the Property.

 

8.14                                        No Broker or
Finder.  Neither Borrower, nor
Guarantor, nor anyone on behalf thereof, has dealt with any broker, finder or
other person or entity who or which may be entitled to a broker’s or finder’s
fee, or other compensation, payable by Agent or any Lender in connection with
this Loan.

 

8.15                                        Background
Information and Certificates.  All of the factual information contained or
referred to in Section 1 of this Agreement and in the Exhibits to this
Agreement or the other Loan Documents, and in the certificates and opinions
furnished to Agent or any Lender by or on behalf of Borrower in connection with
the Property or the Loans, is true, accurate and complete in all material
respects, and omits no material fact necessary to make the same not misleading.

 

13

 

8.16                                        Guarantor’s
Warranties and Representations.  Borrower has no reason to believe that any
warranties or representations made in writing by Guarantor to Agent are untrue,
incomplete or misleading in any respect.

 

9.                                       COVENANTS.  Each Borrower covenants and agrees that from
the date hereof and so long as any principal amount of the Loans remain unpaid
hereunder, or any of the Loans or other obligations remains outstanding, as
follows:

 

9.1                                              Notices.  Each Borrower shall, with reasonable
promptness, but in all events within ten (10) days after it has actual
knowledge thereof, notify Agent and each of the Lenders in writing of the
occurrence of any act, event or condition which constitutes a Default under any
of the Loan Documents.  Such notification
shall include a written statement of any remedial or curative actions which
Borrower proposes to undertake to cure or remedy such Default.

 

9.2                                              Financial
Statements and Reports. 
Borrower shall furnish or cause to be furnished to Agent and each of the
Lenders from time to time, the following financial statements and reports and
other information, all in form, manner of presentation and substance acceptable
to Agent and each of the Lenders (provided that Borrower statements, reports
and other information provided in forms substantially similar to forms previously
delivered to Agent shall be acceptable to Agent and each of the Lenders):

 

9.2.1                                                 Annual
Statements.  Within
ninety (90) days following the end of each calendar year, audited financial
statements of Borrower, Guarantor and SAgE prepared utilizing tax basis
accounting, or other recognized method of accounting acceptable to Agent,
consistently applied, in form and
manner of presentation acceptable to Agent by an independent, certified
public accountant acceptable to Agent, such financial statements to include and
to be supplemented by such detail and supporting data and schedules as Agent
may from time to time reasonably determine;

 

9.2.2                                                 Periodic
Statements.  Within
thirty (30) days following the end of each calendar quarter the following,
internally prepared by each Borrower and certified by each Borrower to be true,
accurate and complete: (i) an operating statement showing the results of
operation for the prior quarter and on a year-to-date basis for the period just
ended and, within thirty (30) days following the end of each calendar year, an
operating statement for the year just ended; (ii) a detailed, current rent
roll of the Property, containing such details as Agent may reasonably request,
and (iii) cash flows for the quarter just ended;

 

9.2.3                                                 Data Requested.  Within a reasonable period of time and from
time to time such other financial data or information as Agent may reasonably
request with respect to the Property or a Borrower, including, but not limited
to, rent rolls, aged receivables, aged payables, leases, budgets, forecasts,
reserves, cash flow projections, physical condition of the Property and pending
lease proposals;

 

9.2.4                                                 Tax Returns.  Upon
Agent’s request, complete copies of all federal and state tax returns
and supporting schedules of Borrower, Guarantor and SAgE;

 

14

 

9.2.5                                                 Lease Notices.  Concurrently with the giving thereof, and
within ten (10) Business Days of receipt thereof, copies of all notices,
other than routine correspondence, given or received with respect to the leases
to a Major Tenant.

 

9.2.6                                                 Pro Forma and
Business Plan.  Thirty (30)
days prior to the end of each calendar year, a pro-forma cash flow statement
for each Property for the next year, in form acceptable to Agent, together with
copies of all budgets, forecasts and projections which support the pro-forma
and an annual business plan for the ensuing calendar year.

 

9.2.7                                                 Guarantor’s
Statements.  The
financial statements and reports required to be furnished by Guarantor as set
forth in the Guaranty.

 

9.3                                              Payment of
Taxes and Other Obligations.  Subject
to the right to contest set forth in Section 10.1, each Borrower
shall duly pay and discharge, or cause to be paid and discharged, before the
same shall become overdue, all taxes, assessments and other governmental
charges payable by it, or with respect to the Property, as well as all claims
or obligations for labor, materials, supplies or services (involving an amount
in excess of $10,000.00 in any instance or $25,000.00 in the aggregate) or for
borrowed funds in any amount.

 

9.4                                              Conduct of
Business; Compliance With Law.  Each Borrower shall engage solely in the
ownership and operation of the Property, and will not enter into any new
ventures, or undertake any Investments, except as permitted in Section 9.8,
or any new business dealings, if unrelated to the acquisition, development,
maintenance, operation or disposition of the Property, without Agent’s express
prior written consent in each instance. 
As an express inducement to the Lenders to make and maintain the Loans,
each Borrower agrees at all times prior to payment and satisfaction of all
Obligations to be and remain a single purpose entity.  Each Borrower shall operate the Property and
conduct its affairs in a lawful manner and in compliance with all Legal
Requirements applicable thereto and all provisions of ERISA.

 

9.5                                              Insurance.  Each Borrower shall at all times maintain or
cause to be maintained in full force and effect the insurance coverages set
forth in Exhibit D of this Loan Agreement and shall cause Agent, on behalf
of the Lenders, to be designated as mortgagee/loss payee/additional insured in
accordance with the requirements of Exhibit D. All insurance premiums
shall be paid annually, in
advance, and Agent and each of the Lenders shall be provided with evidence of
such prepayment of insurance premiums prior to closing and thereafter at least
thirty (30) days prior to each annual
renewal or replacement of such coverages.

 

9.6                                              Restrictions on
Liens, Transfers and Additional Debt.

 

9.6.1                                                 Prohibited
Transactions.  Subject to
rights of contest under the Loan Documents, except for Permitted Transactions,
a Borrower shall not:

 

(i)                                                     create or
incur, or suffer to be created or incurred, or to exist, any encumbrance,
mortgage, pledge, lien, charge or other security interest of any kind upon any
of its assets of any character whether
or not related to the Property, or any portion thereof, whether now
owned or hereafter acquired or upon the proceeds or products thereof;

 

15

 

(ii)                                                  create or incur
any indebtedness for borrowed funds whether secured or unsecured either
directly or as a guarantor except for the Loans and the Bridge Loans;

 

(iii)                                               directly or
indirectly permit any sale, transfer, exchange, assignment or pledge of or
grant of any security interest in any ownership interests in Borrower; or

 

(iv)                                              sell, convey,
transfer or exchange any of its assets of any character, or any portion
thereof, whether now owned or hereafter acquired.

 

9.6.2                                                 Permitted
Transactions.  The term “Permitted
Transactions” shall mean Permitted Transfers, Permitted Additional Debt,
Permitted Title Exceptions and Approved Leases.

 

9.6.3                                                 Permitted
Transfers.  The term “Permitted
Transfers” shall mean:

 

(i)                                                     the Security
Documents and other agreements in favor of Agent including the Security
Documents in favor of Agent pertaining to the Loans and the Bridge Loans;

 

(ii)                                                  transactions,
whether outright or as security, for which Agent’s prior written consent has
been obtained, which consent may be withheld, granted or granted conditionally,
subject to such protective and other conditions as Agent may require in its
sole and absolute discretion;

 

(iii)                                               sales or
dispositions in the ordinary course of business of worn, obsolete or damaged
items of personal property or fixtures which are suitably replaced;

 

(iv)                                              transfers and
sales of a Property subject to the requirements of Section 9.21 below;

 

(v)                                                 any transfer
pursuant to the Bridge Loan Documents;

 

(vi)                                              a STAG III
Transfer;

 

(vii)                                           an NED
Transfer; and

 

(viii)                                        other matters
approved by Agent.

 

9.6.4                                                 Permitted
Additional Debt.  The term “Permitted
Additional Debt” shall mean:

 

(i)                                                     transactions,
whether secured or unsecured, for which Agent’s prior written consent has been
obtained, which consent may be withheld, granted or granted conditionally
subject to such protective and other conditions as Agent may require in its
sole and absolute discretion;

 

16

 

(ii)                                                  indebtedness
incurred in the ordinary course of business for the purchase of goods or
services which are payable, without interest, within thirty (30) days of
billing;

 

(iii)                                               fully
subordinated unsecured loans from owners of Borrower the proceeds of which are used solely to pay costs related to the
Property so long as the applicable creditor has entered into a
subordination and standstill agreement which is fully satisfactory to Agent in
Agent’s sole and absolute discretion; and

 

(iv)                                              the Bridge
Loan.

 

9.6.5                                                 Additional
Funds.  All funds required for the
operation of the Property in excess of those available from ordinary cash flow
of the Property shall be provided by Borrower, or its owners, or Guarantor, as
additional equity contributions or by Permitted Additional Debt.

 

9.6.6                                                 Right To
Accelerate Loans.  The Loans
shall become due and payable in full, and the Agent shall have the right to
accelerate the Loans and declare an Event of Default, at the option of Agent or
at the direction of the Majority Lenders, upon any breach or violation of the
provisions of Section 9.6., subject to Borrower’s rights to cure;  provided,
however, except for a voluntary conveyance, mortgage or lien (as to which no
notice or grace periods shall be applicable), a Default under Section 9.6
shall be subject to the grace or notice periods provided in Section 11.1.3
or 11.2.4, whichever is shorter.

 

9.6.7                                                 Agent’s Options.  Except as otherwise provided in Section 15.19
Agent may, with the approval of the Majority Lenders, in lieu of accelerating
the Loans, and in its sole and absolute discretion, agree to waive compliance
with the provisions of this Section 9.6. in any instance upon compliance
with such terms and conditions as the Agent or the Majority Lenders may impose,
including, without limitation, the payment of a material fee and an increase in
the interest rate and other terms. 
Except for Permitted Transfers, the Agent or the Majority Lenders may
grant or withhold, or conditionally grant, their consent to any proposed
transfer in its sole and absolute discretion. 
In the case of a sale or transfer with the required prior written
consent, or any such Permitted Transfer, the seller or transferor shall remain
jointly and severally liable with the purchaser or transferee for all
liabilities of Borrower or its owners hereunder.

 

9.6.8                                                 As used herein,
an “NED Transfer” means transfers of direct or indirect interests in SAgE as
long as, following any such transfer, at least 51% of SAgE continues to be
owned, directly or indirectly by NED Investors (as defined below) or their
Affiliates (as defined below) and/or by STAG Investors (as defined below) or
their Affiliates.

 

As used in this Agreement, “STAG
III Transfer”  means transfers of direct
or indirect interests in STAG III as long as, following any such transfer, at
least 51% of STAG III continues to be owned, directly or indirectly by STAG
Investors and/or NED Investors or their Affiliates; provided, however,
at the time of such STAG III Transfer, (i) no Event of Default shall have
occurred and be continuing, and (ii) the Bridge Loan shall 

 

17

 

have been repaid in full.

 

As used in this Agreement, “NED
Investors” means (i) Stephen Karp, (ii) Steven Fischman, (iii) Gregory
Sullivan, (iv) their family members or trusts for the benefit of the foregoing
individuals or their family members, and/or (y) any entity in which more
than fifty percent (50%) of the beneficial interests are directly or indirectly
owned by Stephen Karp, Steven Fischman, Gregory Sullivan, their family members
and/or by trusts for the benefit of such individuals and/or their family
members.

 

As used in this Agreement, “STAG
Investors” means (i) Benjamin S. Butcher, (ii) his family, members or
trusts for the benefit of Benjamin S. Butcher and/or his family members, (iii) institutional
members of STAG Investments III, LLC, (iv) any entity in which more than
fifty percent (50%) of the beneficial interests are directly or indirectly
owned by Benjamin S. Butcher, his family members and/or by trusts for the
benefit of Benjamin S. Butcher and/or his family members and/or (v) any
entity in which more than fifty percent (50%) of the beneficial interests are
directly or indirectly owned by the Treasurer of the State of North Carolina.

 

As used in this Agreement, “Affiliate(s)”
means a person or an entity that controls, is controlled by, or is under common
control with the person or entity with respect to which the determination is to
be made, and the terms “control,” “controls,” and “under common control with,”
mean the direct or indirect power to direct or cause the direction of the
management and policies of the company, partnership, limited liability company,
trust or entity with respect to which the determination is to be made, whether
through the ownership of voting securities, by contract or otherwise.

 

9.7                                              Limits on
Guaranties and Distributions.

 

9.7.1                                                 Limits.  A Borrower shall not guarantee to anyone the
obligations of any person or entity.  A
Borrower shall not pay any money or distribute any property (in any form) to
its owners, in any capacity, or
to any affiliated entity or related party, except for Permitted Distributions.

 

9.7.2                                                 Permitted
Distributions.  The term “Permitted
Distributions” shall mean so long as no Default or Event of Default has
occurred (unless waived by the Majority Lenders as set forth in Section 11.4)
any of the following payments: payments
to owners and affiliates in the normal course of business.

 

9.8                                              Restrictions on
Investments.  A Borrower
will not make or permit to exist or to remain outstanding any Investment out of
proceeds of the Loans or the proceeds of a Property except an Investment in
assets as to which Agent has a perfected first lien mortgage or security
interest and which are in:

 

(i)                                                     marketable
direct or guaranteed general obligations of the United States of America which
mature within one year from the date of purchase by Borrower;

 

(ii)                                                  bank deposits,
certificates of deposit and banker’ s acceptances, or other obligations in or
of Lenders or other banks located within and chartered by the United 

 

18

 

States
of America or a state and having assets of over $500,000,000.00; and

 

(iii)                                               personal
property and real estate acquired in the normal and ordinary course of Borrower’s
present business and in connection with a Property.

 

All such Investments shall
be made in a manner which assures that Agent shall have and maintain a
perfected first lien security interest therein.

 

9.9                                              Indemnification
Against Payment of Brokers’ Fees.  Each Borrower agrees to defend, indemnify and
save harmless Agent and each of the Lenders from and against any and all
liabilities, damages, penalties, costs, and expenses, relating in any manner to
any brokerage or finder’s fees in respect of the Loans.

 

9.10                                        Limitations On
Certain Transactions.  Each
Borrower agrees to the following limitations:

 

9.10.1                                           No Merger or
Acquisition.  Except with
respect to Permitted Transactions, a Borrower shall not dissolve or liquidate,
nor merge or consolidate with or otherwise acquire all or substantially all of
the assets of any other entity.

 

9.10.2                                           Contracts of a
Material or Significant Nature.  A Borrower shall not enter into any merger or
consolidation agreements.  Except for
contracts otherwise complying with this Agreement or any contact for the sale
of all or a portion of the Property and contracts incident to the routine
operation of the Property such as utilities, insurance and maintenance,
Borrower shall not enter into any other contracts, agreements or purchase
orders which would involve the expenditure of more than $100,000 in the
aggregate in any year relating to each Property without Agent’s prior written
consent, which consent shall not be unreasonably withheld or delayed, but which
consent may be conditioned upon a demonstration by Borrower to Agent’s
reasonable satisfaction that the contract, agreement or purchase order is
reasonable and that Borrower has adequate resources to pay and perform the
same.

 

9.11                                        Approval of
Management and Management Contract.  Agent shall have the continuing right to
approve the identity of any management company operating a Property and the
terms and conditions of the contract for such management.  Agent’s approval shall not be unreasonably
withheld, conditioned or delayed and Agent hereby approves STAG Capital
Partners LLC as a management company.

 

9.12                                        RESERVED.

 

9.13                                        Place for
Records: Inspection.  Each
Borrower shall maintain all of its business records at the address specified at
the beginning of this Agreement.  Upon
five (5) Business Days, prior notice and at reasonable times during normal
business hours Agent shall have the right (through such agents or Consultants
as Agent may designate) to examine Borrower’s property and make copies of and
abstracts from Borrower’s books of account, correspondence and other records
and to discuss its financial and other affairs with any of its owners and any
accountants hired by Borrower, it being agreed that Agent and each of the
Lenders shall use reasonable efforts to not divulge information obtained from
such examination to others except in 

 

19

 

connection with Legal
Requirements and in connection with administering the Loans, enforcing its
rights and remedies under the Loans Documents and in the conduct, operation and
regulation of its banking and lending business (which may include, without
limitation, the transfer of the Loans or of participation interests
therein).  Any assignee or transferee of
the Loans, co-lenders or any holder of a participation interest in the Loans
shall be entitled to deal with such information in the same manner and in
connection with any subsequent transfer of its interest in the Loans or of
further participation interests therein.

 

9.14                                        Costs and
Expenses.  Borrower
shall pay all costs and expenses (excluding salaries or wages of employees of
Agent) reasonably incurred by Agent in connection with the implementation of
the Loan and the administration of the Loans, including, without limitation,
reasonable legal fees and disbursements, appraisal fees, inspection fees, plan
review fees, travel costs, fees and out-of-pocket costs of independent
engineers and consultants, Borrower shall pay all costs and expenses (excluding
salary and wages of employees of Agent or any Lender) reasonably incurred by
Agent and each of the Lenders in connection with the enforcement of Agent’s and
the Lenders’ rights under the Loan Documents. 
Borrower’s obligations to pay such costs and expenses shall include,
without limitation, all reasonable attorneys, fees and other costs and expenses
reasonably incurred for preparing and conducting litigation or dispute
resolution arising from any breach by Borrower or any Guarantor or Indemnitor
of any covenant, warranty, representation or agreement under any one or more of
the Loan Documents.

 

9.15                                        Compliance with
Legal Requirements.  Each
Borrower shall comply with all Legal Requirements applicable to its Property,
such Borrower or both.

 

9.16                                        Indemnification.  Borrower shall at all times, both before and
after repayment of the Loans, at its sole cost and expense defend, indemnify,
exonerate and save harmless Agent and each of the Lenders and all those
claiming by, through or under Agent and each of the Lenders (“Indemnified Party”)
against and from all damages, losses, liabilities, obligations, penalties,
claims, litigation, demands, defenses, judgments, suits, proceedings, costs,
disbursements or expenses of any kind whatsoever, including, without
limitation, reasonable attorneys’ fees and experts, fees and disbursements, which
may at any time (including, without limitation, before or after discharge or
foreclosure of the Mortgage) be imposed upon, incurred by or asserted or
awarded against the Indemnified Party and arising from or out of:

 

(i)                                                     any Hazardous
Materials or any violation of, or failure to comply with, any Environmental
Legal Requirements all as more particularly provided for in the Environmental
Indemnity with respect to the Property or any other Collateral;

 

(ii)                                                  any liability
for damage to person or property arising out of any violation of any Legal
Requirement applicable to the Property, Borrower, or both, or

 

(iii)                                               any act,
omission, negligence or conduct at the Property, or arising or claimed to have
arisen, out of any act, omission, negligence or conduct of Borrower or any
contractor, sub-contractor, tenant, occupant or invitee thereof, which is in
any way related to the Property.

 

Notwithstanding the foregoing, an Indemnified Party shall not be
entitled to indemnification in 

 

20

 

respect of claims arising from acts of its own gross negligence or
willful misconduct.

 

9.17                                        Leasing Matters.

 

9.17.1                                           Agent’s Further
Approval Required.  Agent’s
prior written approval shall be required in each instance as to: the economic
and other terms of every lease and occupancy agreement of a Property or any
portion thereof; (ii) each tenant; (iii) each guarantor of a tenant’s
obligations; (iv) any consent to subletting or assignment; (v) any
modification or amendment to a lease; and (vi) any termination,
cancellation or surrender of a lease. 
Any lease, or modification or amendment of lease, which has been so
approved by Agent, and, if so requested by Agent as to which the tenant has
executed an SNDA Agreement, estoppel certificate, or both, acceptable to Agent
shall be an “Approved Lease.

 

9.17.2                                           Borrower’s
Requests.  Any request
by a Borrower for an approval from Agent with respect to leasing matters shall
be accompanied, at a minimum, by the following, to the extent applicable: (i) the
proposed lease or amendment or modification thereof complete with all
applicable schedules and exhibits; (ii) a complete copy of any proposed
guaranty, if applicable; (iii) comprehensive financial information with
respect to the proposed tenant, sub-tenant or assignee and, if applicable, the
proposed guarantor (as to new leases or amendments or modifications to existing
leases involving material economic changes, and as to proposed sub-lets or
assignments); (iv) executive summary of the terms and conditions of the
proposed lease, sub-lease or assignment, and, if applicable, the proposed
guaranty; and (v) an executive summary of the facts and conditions
relating to any proposed termination of lease.

 

9.17.3                                           Agent’s and
Lenders’ Response.  The Agent
shall act on requests from a Borrower for any approval under Section 9.17.2
in a commercially reasonable manner and shall use commercially reasonable
efforts to respond to any such request within ten (10) Business Days
following Agent’s receipt thereof.  Agent’s
response may consist of an approval or disapproval of the request, or a
conditional approval thereof subject to specified conditions, or a request for
further data or information, or any combination thereof.  In order to expedite the processing of requests
for such approvals, the applicable Borrower agrees to provide Agent with as
much advance information as is possible in a commercially reasonable manner in
advance of a Borrower’s formal request for an approval.  If the request for approval contains printed
in capital letters or boldface type, a legend substantially to the following
effect:

 

“THIS COMMUNICATION REQUIRES
IMMEDIATE RESPONSE.  FAILURE TO RESPOND
WITHIN FIFTEEN (15)  BUSINESS DAYS FROM
THE RECEIPT OF THIS COMMUNICATION SHALL CONSTITUTE A DEEMED APPROVAL BY THE
AGENT OF THE ACTION REQUESTED BY THE BORROWER AND RECITED ABOVE”

 

then in the event that the
Agent does not approve, reject or request additional information regarding any
such request for consent or acceptance within fifteen (15) Business Days of the
receipt by the Agent of such request and all material information for the Agent
to reasonably review such request, the Agent shall be deemed to have approved
or 

 

21

 

consented to the action
requested in the request and subject to the following conditions, the lease
with respect thereto shall be an Approved Lease: (i) the execution by the
Borrower and the subject tenant of a lease on terms that do not materially vary
from those set forth in the request, and (ii) Agent shall be provided,
within ten (10) Business Days following execution thereof with a full and
complete copy of the lease.

 

9.17.4                                           SNDAs and
Estoppels.  Agent shall
have the right to require each tenant to execute and deliver to Agent a
subordination, non-disturbance of possession and attornment agreement (“SNDA
Agreement”) in form, content and manner of execution reasonably acceptable to
Agent and, from time to time, an estoppel certificate in form and manner of
execution reasonably acceptable to Agent. 
Upon a Borrower’s request, Agent
shall execute an SNDA Agreement with each tenant under an Approved Lease
upon:  (i) satisfaction of all
landlord obligations under the applicable Approved Lease such that the tenant
has taken full possession of the leases premises and is obligated to pay rent,
and (ii) receipt by Agent of a satisfactory estoppel certificate
confirming the full performance of landlord obligations to date including, but
not limited to, landlord obligations relating to the construction of Tenant
Improvements, and the absence of any fact or circumstance which constitutes, or
with the passage of time or giving of notice, or both, would constitute, a
default under such lease.

 

9.18                                        Loan To Value
Ratio Covenant.

 

9.18.1                                           LTV.  At all times the ratio (“Loan To Value Ratio”
or “LTV”) obtained by dividing: (i) the outstanding principal balance of
the Loan, by (ii) the aggregate Value of the Property, expressed as a
percentage, shall not be greater than seventy-five percent (75%).  For the purposes of this Loan Agreement, the “Value
of the Property” shall mean such Value of the Property (on an aggregate basis)
as determined by the Agent pursuant to each Original Appraisal or by a new
appraisal ordered by and reasonably acceptable to Agent.

 

9.18.2                                           Updated
Appraisals.  Agent shall
have the right at its option, from time to time, to order an update, and shall
upon Borrower’s request, order an update, to the Original Appraisal or a new
appraisal (collectively, an “Updated Appraisal”). Each Updated Appraisal shall
be prepared by the original or more recent appraiser unless Agent makes a good
faith determination not to have such appraiser prepare the same in which event
the Updated Appraisal shall be prepared at Agent’s direction by an appraiser
selected by Agent.  Any appraiser
selected by Agent shall be: (i) an MAI member with not less than ten (10) years
experience appraising properties of a similar type to the Property in the
general area, (ii) otherwise qualified pursuant to provisions of
applicable laws and regulations under and pursuant to which Agent operates, and
(iii) each Updated Appraisal shall be approved by the Majority Lenders,
which approval shall not be unreasonably withheld.  In the event that Borrower does not
reasonably agree with any Updated Appraisal, Borrower may contest the amount
set forth therein by instituting an arbitration proceeding pursuant to Section 9.18.5.

 

9.18.3                                           Costs of
Appraisal.  Borrower
shall pay for the costs of the Original Appraisal and each Updated Appraisal;
provided that Borrower shall not be required to 

 

22

 

pay for more than one (1) Updated
Appraisal in any twelve (12) month period unless either: (i) an Event of
Default has occurred, or (ii) Agent has determined in good faith that
there is a material likelihood that an updated Appraisal would reflect a
diminution in Value of the Property of ten (10%) percent or more from the most
recent appraisal.

 

9.18.4                                           Principal
Reduction.  If at any time the Loan To Value Ratio is
not satisfied, Borrower shall within thirty (30) days following Agent’s
notice, make either (a) a principal payment in an amount sufficient to
reduce the Loan To Value Ratio to not more than seventy-five percent (75%) or
(b) deliver additional collateral to Agent acceptable to the Agent in its
reasonable discretion, together with such customary documentation and due
diligence as the Agent may reasonably require, with a value (as determined by
the Agent in its reasonable discretion) sufficient to reduce the Loan to Value
Ratio to not more than 75%.  It shall be
an Event of Default if such payment is not so made or additional collateral
delivered within such thirty (30) day period.

 

9.18.5                                           Arbitration. If Borrower
disputes the value of the Property set forth in an Updated Appraisal, and if
such dispute has not been settled by agreement. either party may submit the
dispute to arbitration in accordance with the commercial arbitration rules of
the American Arbitration Association within sixty (60) days after the Updated
Appraisal is delivered to Borrower. The arbitration panel shall consist of one (1) MAI
appraiser selected by each of Borrower and Agent, and a third arbitrator
jointly selected by the first two arbitrators and if the parties cannot agree
on a third arbitrator, the third arbitrator shall be an MAI appraiser with at
least ten (10) years’ experience in the market in which the relevant
portion of the Property is located who is selected by the highest ranking
officer of CB Richard Ellis, it successors or assigns. The arbitration shall be
conducted in Boston, Massachusetts. None of the arbitrators shall have a then
existing contractual or attorney-client relationship with Borrower or Agent.
The arbitrators shall render a written decision stating the reasons therefor.
The decision of the arbitrators shall be final and binding on Borrower and
Agent and judgment thereon may be entered in any court of competent
jurisdiction.  Each party shall bear its own
costs in connection with any such arbitration.

 

9.19                                        Debt Service
Coverage Ratio.

 

9.19.1                                           Certain
Definitions.

 

(i)                                                    “Calculation
Date” shall mean the last day of each calendar quarter commencing with September 30,
2006.

 

(ii)                                                 “Calculation
Period” shall mean each three (3) month
period which ends on a Calculation Date.

 

(iii)                                              “Debt Service
Coverage” shall mean the ratio for the Calculation Period of:  (A) Net Operating Income (in each
instance calculated with respect to each Property which is Collateral) to (B) Debt
Service on the Loan.

 

(iv)                                             “Net Operating
Income” shall mean all revenues paid to Landlord under Approved Leases (i.e., not including any amounts paid by tenants to third 

 

23

 

parties
pursuant to Approved Leases) and the
ownership and operation of the Property and the interim investment of
accumulated funds minus all Operating Expenses.

 

(v)                                                “Operating
Expenses” shall mean expenditures of all kinds made by Borrower (and not by
Tenant on behalf of Borrower) with respect to the operation of the Property in
the normal course of business including, but not limited to, expenditures for
taxes, insurance, repairs, replacements, maintenance, management fees,
salaries, advertising expenses, professional fees, wages and utility costs,
amounts payable with respect to the Property under or with respect to any
Permitted Title Exceptions, but expressly excluding: (a) any Debt Service
on the Loan, and (b) expenditures made out of reserves previously created,
(c) marketing, advertising and leasing costs and (d) non-recurring
expenses (including any expenditures related to Tenant Improvements which in
accordance with the accrual basis income tax accounting are depreciated or
amortized over a period of less than one (1) year).  Any
expenditures which in accordance with the accrual basis income tax accounting
are depreciated or amortized over a period which exceeds one (1) year
shall be treated as an expenditure, for the purposes of the foregoing
calculations, ratably over the period of depreciation or amortization.

 

(vi)                                             “Debt Service
on the Loan” shall mean (a) if the interest rate under the Loans has been
fixed for the duration of the Loans, the actual principal and interest paid or
payable under the Loan during the Calculation Period, or (b) if the interest
rate under the Loans is a floating rate, the higher of: (i) the actual
principal and interest paid or payable under the Loans during the Calculation
Period, or (ii) the payments of principal and interest that would have
been payable under an assumed loan during the Calculation Period in an amount
equal to the outstanding principal balance of the Loans at the inception of the
relevant Calculation Period bearing interest at the Deemed Rate of Interest
payable on a direct reduction basis over twenty (20) years.

 

(vii)                                          “Deemed Rate of
Interest” shall mean the higher of (a) the actual rates in effect under
the Note, or (b) the annual rate of interest payable on the relevant
Calculation Date (that is, the last day of the applicable Calculation Period)
on ten (10) year United States Treasury obligations in amounts
approximating the principal balance of the Loan at the inception of the
Calculation Period plus one and three quarters percent (1.75%).

 

9.19.2                                           DSC Covenant.  The Debt Service Coverage for each Calculation
Period determined on each Calculation Date shall be not less than 1.25:1.  If such Debt Service Coverage covenant shall
not be satisfied on any Calculation Date, Borrower shall prepay a sufficient
amount of principal outstanding on the Loans such that if such principal
reduction had been made on the first day of the Calculation Period the Debt
Service Coverage covenant would have been satisfied.  It shall be an Event of Default if Borrower
fails to make such a prepayment not later than the first to occur of: (i) thirty
(30) days  after notice from Agent to Borrower properly
requesting the payment, or (ii) if Borrower has failed to give Agent
sufficient reports to enable Agent to make the necessary calculations,
forty-five (45) days following the applicable Calculation Date.

 

24

 

9.20                                        Replacement
Documentation.  Upon
receipt of an affidavit of an officer of Agent or any Lender as to the loss,
theft, destruction or mutilation of the Note or any other security document
which is not of public record, and, in the case of any such loss, theft,
destruction or mutilation, upon surrender and cancellation of such Note or
other security document, Borrower will issue, in lieu thereof, a replacement
Note or other security document in the same principal amount thereof and
otherwise of like tenor.

 

9.21                                        Partial Release.  Provided no Event of Default is then in
existence hereunder, upon the written request of the Borrower, provided at
least ten (10) Business Days prior to the date of the requested release,
the Agent shall release a Property from the lien of the Security Documents upon
the satisfaction of the following conditions:

 

(i)                                                     The Agent shall
have received the Partial Release Payment for such Property. As used herein, “Partial
Release Payment” shall mean, for any Property, that amount which is equal to
1.2 multiplied by the Loan Amount advanced with respect to such Property;

 

(ii)                                                  The Borrower
shall simultaneous with the delivery of the Partial Release Payment, shall repay
the Bridge Loan in an amount equal to the Partial Release Payment required to
be paid pursuant to the Bridge Loan Documents;

 

(iii)                                               After giving
effect to the release of the subject Property, the Borrower will not violate
the minimum Debt Service Coverage covenant, as calculated pursuant to Section 9.19.2;
and

 

(iv)                                              After giving
effect to the release of the subject Property, the Borrower will not violate
the maximum Loan To Value Ratio covenant, as calculated pursuant to Section 9.18.1
hereof.

 

10.                                 SPECIAL
PROVISIONS.

 

10.1                                        Right to
Contest.

 

10.1.1                                           Taxes and
Claims by Third Parties. 
Subject to a Tenant’s rights under the applicable Lease, notwithstanding
the provisions of Section 9.3 which obligate Borrower to pay taxes and
other obligations to third parties when due, it is agreed that any tax,
assessment, charge, levy, claim or obligation to a third party (expressly
excluding an obligation created under the Loan Documents) need not be paid
while the validity or amount thereof shall be contested currently, diligently
and in good faith by appropriate proceedings and if Borrower shall have
adequate unencumbered (except in favor of Agent, on behalf of the Lenders) cash
reserves with respect thereto, and provided that such contest does not create a
default by landlord under any lease assigned to Agent, on behalf of Lenders;
and provided, further, that Borrower shall pay all taxes, assessments, charges,
levies or obligations: (i) immediately upon the commencement of proceedings to
enforce any lien which may have attached as security therefor, unless such
proceeding is stayed by proper court order pending the outcome of such contest;
and (ii) as to claims for labor, materials or supplies, prior to the
imposition of any lien on the Property unless the lien is discharged or bonded
as set forth in Section 11.1.4.

 

25

 

10.1.2             Legal Requirements.  Each Borrower may contest any claim, demand,
levy or assessment under any Legal Requirements by any person or entity if: (i) the
contest is based upon a material question of law or fact raised by the Borrower
in good faith; (ii) the Borrower properly commences and thereafter
diligently pursues the contest; (iii) the contest will not materially
impair the ability to ultimately comply with the contested Legal Requirement
should the contest not be successful and the conduct of the contest will not
materially interfere with the ability to obligate all tenants under Approved
Leases to pay rent without offset; (iv) the Borrower demonstrates to Agent’s
reasonable satisfaction that Borrower has the financial capability to undertake
and pay for such contest and any corrective or remedial action then or
thereafter reasonably likely to be necessary; (v) if the likely cost of
complying with the Legal Requirement in the event the contest is not
successfully resolved, as determined in good faith by Agent, is more than $25,000.00 there is no reason to
believe that the contest will not be resolved prior to the Maturity Date or if the Extended Term has become effective,
prior to the Extended Maturity Date; (vi) no Event of Default
exists; and (vii) if the contest relates to an Environmental Legal
Requirement, the conditions set forth in the Environmental Indemnity relating
to such contests shall be satisfied.

 

10.2            Limited Recourse Provisions.  Each Borrower shall be fully liable for the
Loans and the Obligations of each other Borrower to each of the Lenders;
provided, however, that the Agent and the Lenders agree that (a) they
shall have no recourse to any portion of the Collateral which has been released
pursuant to the provisions of Section 9.21., and (b) upon a release
of all Collateral granted by a specific Borrower, such Borrower shall be deemed
released from its Obligations under the Loan Documents, other than any
Obligations which, by their terms, survive repayment of the Loans.  No member, officer, manager or other direct
or indirect owner of a Borrower or Guarantor shall have any liability for the
Loan or the obligations of a Borrower or Guarantor to the Agent or the other
Lenders.  Guarantor’s recourse is limited
to the specific obligations set forth in the Guaranty.

 

11.          EVENTS OF DEFAULT. 
The following provisions deal with Default, Events of Default, notice,
grace and cure periods, and certain rights of Agent following an Event of
Default.

 

11.1            Default and Events of Default.  The term “Default” as used herein or in any
of the other Loan Documents shall mean an Event of Default, or any fact or
circumstance which constitutes, or upon the lapse of time, or giving of notice,
or both, could constitute, an Event of Default. 
Each of the following events, unless cured within any applicable grace
period set forth or referred to below in this Section 11.1., or in Section 11.2.,
shall constitute an “Event of Default”:

 

11.1.1             Generally.  A default by any Borrower in the performance
of any term, provision or condition of this Agreement to be performed by any
Borrower, or a breach, or other failure to satisfy, any other term, provision,
condition, covenant or warranty under this Agreement and such default remains
uncured beyond any applicable specific grace period provided for in this
Agreement, or as set forth in Section 11.2. below;

 

26

 

11.1.2             Note, Mortgage and Other Loan
Documents.  A default by any Borrower
in the performance of any term or provision of the Note, or of the Mortgage, or
of any of the other Loan Documents, or a breach, or other failure to satisfy,
any other term, provision, condition or warranty under the Note, the Mortgage
or any other Loan Document, regardless of whether the then undisbursed portion
of the Loans is sufficient to cover any payment of money required thereby, and
the specific grace period, if any, allowed for the default in question shall
have expired without such default having been cured and including, without limitation,
any Bridge Loan Default;

 

11.1.3             Financial Status and Insolvency.

 

A.     A Borrower shall: (i) admit in writing
its inability to pay its debts generally as they become due; (ii) file a
petition in bankruptcy or a petition to take advantage of any insolvency act; (iii) make
an assignment for the benefit of creditors; (iv) consent to, or acquiesce
in, the appointment of a receiver, liquidator or trustee of itself or of the
whole or any substantial part of its properties or assets; (v) file a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under the Federal
Bankruptcy laws or any other applicable law; (vi) have a court of
competent jurisdiction enter an order, judgment or decree appointing a
receiver, liquidator or trustee of a Borrower, or of the whole or any
substantial part of the property or assets of a Borrower, and such order,
judgment or decree shall remain unvacated or not set aside or unstayed for one
hundred twenty (120) days; (vii) have a petition filed against it seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the Federal Bankruptcy laws or any other
applicable law and such petition shall remain undismissed for one hundred
twenty (120) days; (viii) have, under the provisions of any other law for
the relief or aid of debtors, any court of competent jurisdiction assume
custody or control of a Borrower or of the whole or any substantial part of its
property or assets and such custody or control shall remain unterminated or
unstayed for one hundred twenty (120) days; (ix) have an attachment or
execution levied against any substantial portion of the property of a Borrower
or against any portion of the Collateral which is not discharged or dissolved
by a bond within thirty (30) days; or

 

B.     any such event shall occur with respect to
any Guarantor.

 

11.1.4             Liens.  A lien for the performance of work, or the
supply of materials, or a notice of contract, or an attachment, judgment,
execution or levy’ is filed against any Land or any Improvements and remains
unsatisfied or is not discharged or dissolved by a bond (or by cash collateral
acceptable to Agent) for a period of thirty (30) days after the filing thereof
or is not being contested pursuant to Article 10;

 

11.1.5             Breach of Representation or
Warranty.  Any material
representation or warranty made by a Borrower or Guarantor herein or in any
other instrument or document relating to the Loans or a Property shall at any time
be materially false or misleading, or any warranty shall be materially breached
and such breach or 

 

27

 

misrepresentation, if
capable of being cured, is not cured as set forth in Section 11.2 below;

 

11.1.6             Default Under Assigned Contract
or Lease.  A Borrower defaults under
any lease of a Property or under any contract assigned to Agent or the Lenders
and such default is not cured within the grace period applicable thereto such
that the tenant or contracting party obtains the right to terminate the
material contract or lease or to claim material damages and such party either
terminates such material contract or such default remains uncured beyond the
grace period set forth in Section 11.2 below.

 

11.1.7             Guarantor Default.  A default continuing beyond applicable cure
periods by Guarantor in the performance of any term or provision of this
Agreement or any other Loan Document to which Guarantor is a party, or the
breach, or any other failure to satisfy any other term, provision, condition or
warranty imposed upon the Guarantor in this Agreement or in any other Loan
Document to which Guarantor is a party or by which Guarantor is bound not cured
within all applicable notice and cure grace periods.

 

11.2            Grace Periods and Notice.  As to each of the foregoing events the
following provisions relating to grace periods and notice shall apply:

 

11.2.1             No Notice or Grace Period.  There shall be no grace period and no notice
provision with respect to the payment of principal at Maturity and no grace
period and no notice provision with respect to defaults related to the
voluntary filing of bankruptcy or reorganization proceedings or an assignment
for the benefit of creditors, or with respect to nonmonetary defaults which are
not reasonably capable of being cured, or with respect to a breach of warranty
or representation under Section 8.1. (regarding Financial Information), or
with respect to breaches under Section 9.6 (Restrictions on Liens,
Transfers and Additional Debt) except
as provided in Section 8 and 9.7 (Limits on Guaranties and
Distributions).

 

11.2.2             Nonpayment of Interest.  As to the nonpayment of interest, there shall
be a ten (10) day grace period without any requirement of notice from
Agent, except that as to a required principal reduction to comply with the Loan
To Value Ratio Covenant in Section 9.18 or the Debt Service Coverage Ratio
Covenant in Section 9.19, there shall be no grace period except as stated
therein.

 

11.2.3             Other Monetary Defaults.  All other monetary defaults shall have a ten (10) day
grace period following notice from Agent, or, if shorter, a grace period
without notice until five (5) Business Days before the last day on which
payment is required to be made in order to avoid: (i) the cancellation or
lapse of required insurance, or (ii) a tax sale or the imposition of late
charges or penalties in respect of taxes or other municipal charges.

 

11.2.4             Nonmonetary Defaults Capable of
Cure.  As to nonmonetary defaults
which are reasonably capable of being cured or remedied, unless there is a
specific shorter or longer grace period provided for in this Loan Agreement or
in another Loan 

 

28

 

Document, there shall be a
thirty (30) day grace period following notice from Agent or, if such default
would reasonably require more than thirty (30) days to cure or remedy, such
longer period of time not to exceed a total of one hundred twenty (120) days
from Agent’s notice as may be reasonably required so long as Borrower shall
commence reasonable actions to remedy or cure the default within thirty (30)
days following such notice and shall diligently prosecute such curative action
to completion within such one hundred twenty (120) day period.  However, where there is an emergency
situation in which there is danger to person or property such curative action
shall be commenced as promptly as possible. 
As to breaches of warranties and representations (other than those
related to financial information or construction documents) there shall be a
thirty (30) day grace period following notice from Agent.

 

11.3            Certain Remedies. If an Event of Default shall occur:

 

11.3.1             Withhold Loan Advance.  The Lenders shall not have any obligation to
make any further Loans hereunder (and for the purpose of withholding Loans the
Lenders may treat as an Event of Default an event which has occurred without
regard to notice or grace periods, if any, but if there is in fact a cure
within an applicable grace period, Lenders shall not thereafter withhold the
Loan on account thereof);

 

11.3.2             Accelerate Debt.  Agent may, and upon the direction of the
Majority Lenders shall, declare the indebtedness evidenced by the Note and
secured by the Mortgage immediately due and payable (provided that in the case
of a voluntary petition in bankruptcy filed by Borrower or (after the
expiration of the grace period if any set forth in Section 11.1.3 above)
an involuntary petition in bankruptcy filed against Borrower, such acceleration
shall be automatic); and

 

11.3.3             Pursue Remedies.  May pursue any and all remedies provided
for hereunder, or under any one or more of the other Loan Documents.

 

11.3.4             Written Waivers.  If a Default or an Event of Default is waived
by the Majority Lenders or the Agent, in their sole discretion, pursuant to a
specific written instrument executed by an authorized officer of Agent, the
Default or Event of Default so waived shall be deemed to have never occurred.

 

12.          ADDITIONAL REMEDIES.

 

12.1            Remedies. 
Upon the occurrence of an Event of Default, whether or not the
indebtedness evidenced by the Note and secured by the Mortgage shall be due and
payable or Agent shall have instituted any foreclosure or other action for the
enforcement of the Mortgage or the Note, Agent may, and shall upon the
direction of the Majority Lenders, in addition to any other remedies which
Agent may have hereunder or under the other Loan Documents, and not in
limitation thereof, and in Agent’s sole and absolute discretion:

 

12.1.1             Enter and Perform.  Enter upon the Property to perform
obligations under leases, or to operate, maintain, repair and improve the
Property and employ watchmen to protect the Property, all at the risk, cost and
expense of Borrower, consent to such entry being hereby given by Borrower;

 

29

 

12.1.2             Discontinue Work.  At any time discontinue any work commenced in
respect of the Property or change any course of action undertaken by it and not
be bound by any limitations or requirements of time whether set forth herein or
otherwise;

 

12.1.3             Exercise Rights.  Exercise the rights of Borrower under any
contract or other agreement in any way relating to the Property and take over
and use all or any part of the labor, materials, supplies and equipment
contracted for by Borrower, whether or not previously incorporated into the
realty; and

 

12.1.4             Other Actions.  In connection with any work or action
undertaken by Agent pursuant to the provisions of the Loan Documents,

 

(i)                  engage
builders, contractors, architects, engineers and others for the purpose of
furnishing labor, materials and equipment,

 

(ii)                 pay, settle
or compromise all bills or claims which may become liens against the property
constituting the Collateral, or which have been or may be incurred in any
manner in connection with the Property or for the discharge of liens,
encumbrances or defects in the title of the Property or the Collateral,

 

(iii)                take or
refrain from taking such action hereunder as Agent may from time to time
determine, and

 

(iv)               engage
marketing and leasing agents and real estate brokers to advertise, lease or
sell portions or all of the Property or other Collateral upon such terms and
conditions as Agent may in good faith determine.

 

12.2            Reimbursement. 
Borrower shall be liable to Agent and each of the Lenders for all sums
paid or incurred pursuant to any of the Loan Documents whether the same shall
be paid or incurred pursuant to this Section or otherwise, and all
payments made or liabilities incurred by Agent or any Lender hereunder of any
kind whatsoever shall be paid by Borrower to Agent upon demand with interest at
the Default Rate as provided in this Agreement or the Note from the date of
payment by Agent or any Lender (which payment date is at least 30 days after
invoice to Borrower) to the date of payment to Agent and repayment of such sums
with such interest shall be secured by the applicable Security Documents.

 

12.3            Power of Attorney. 
For the purpose of exercising the rights granted by this Section 12,
as well as any and all other rights and remedies of Agent, Borrower hereby
irrevocably constitutes and appoints Agent (or any agent designated by Agent)
its true and lawful attorney-in-fact, upon and following any Event of Default,
to execute, acknowledge and deliver any instruments and to do and perform any
acts permitted hereunder or by law in the name and on behalf of Borrower.

 

13.          SECURITY INTEREST.

 

13.1            Security Interest. 
Borrower hereby grants to Agent, on behalf of the Lenders, a lien and
security interest and as security for all liabilities and obligations to the
Lenders, whether now existing or hereafter arising, upon and against all
deposits, credits, collateral and property, 

 

30

 

now or hereafter in the
possession, custody, safekeeping or control of Agent or any Lender or any
entity under the control of Anglo Irish Bank Corporation plc, or in transit to
any of them.

 

14.          CASUALTY AND TAKING.

 

14.1            Casualty and Obligation To Repair.  In the event of any damage or destruction to
a Property or the other Collateral by reason of fire or other hazard or
casualty (collectively, a “Casualty”), Borrower shall give written notice
thereof to Agent and each of the Lenders as quickly as reasonably possible and
proceed with reasonable diligence, in full compliance with all Legal
Requirements and the other requirements of the Loan Documents, to repair,
restore, rebuild or replace the affected property (collectively, the “Repair
Work”).

 

14.2            Adjustment of Claims.  All insurance claims shall be adjusted by
Borrower, at Borrower’s sole cost and expense, but subject to Agent’s prior
written approval which approval shall not be unreasonably withheld, conditioned
or delayed; provided that if any Event of Default exists under any of the Loan
Documents, Agent shall have the right to adjust and compromise such claims
without the approval of Borrower.

 

14.3            Payment and Application of Insurance Proceeds.  All proceeds of insurance in excess of
$250,000.00 shall be paid to Agent and, if delivered to Agent, at Agent’s
option, be either applied to Borrower’s Obligations (without prepayment
premium, breakage costs or Cost Maintenance Fees) or released, in whole or in
part, to pay for the actual cost of repair, restoration, rebuilding or replacement
(collectively, “Cost To Repair”) as more fully set forth below.  If the Cost To Repair does not exceed
$250,000.00, Agent shall release so much of the insurance proceeds as may be
required to pay for the actual Cost to Repair in accordance with the provisions
of Section 14.4.  Notwithstanding
the foregoing, Agent shall also release so much of the insurance proceeds as
may be required to pay the actual Cost To Repair if:

 

(i)            In Agent’s good faith judgment such
proceeds together with any additional funds as may be deposited with and
pledged to Agent are sufficient to pay the Cost To Repair;

 

(ii)           In Agent’s good faith judgment the
Repair Work is likely to be completed prior to the Maturity Date;

 

(iii)          No Event of Default exists under the
Loan Documents; and

 

(iv)          Each tenant under a Major Lease which
might otherwise have a right to terminate its lease on account of such Casualty
shall have waived its right to so terminate conditioned upon the Repair Work
being completed within a reasonable period of time acceptable to Agent, all
such that at completion of the Repair Work the Loan to Value Ratio shall not be
less than 75% and the Debt Service Coverage shall be at least 1.25:1 (taking
into account any business or rental interruption coverage), as reasonably
projected by Agent.

 

Notwithstanding anything in
the Loan Documents to the contrary, if Agent shall apply the insurance proceeds
to the Obligations (which application shall be made in accordance with the
Note), then Borrower shall have the right (but not the obligation) to prepay
the 

 

31

 

balance of the Loan subject
to the prepayment premium, breakage costs and Cost Maintenance Fees set forth
in the Note.

 

14.4            Conditions To Release of Insurance Proceeds.  If Agent elects or is required to release
insurance proceeds, Agent may impose reasonable conditions on such release
which shall include, but not be limited to, the following:

 

(i)                  Prior written
approval by Agent, which approval shall not be unreasonably withheld,
conditioned or delayed of plans, specifications, cost estimates, contracts and
bonds for the restoration or repair of the loss or damage;

 

(ii)                 Waivers of
lien, architect’s certificates, contractor’s sworn statements and other
evidence of costs, payments and completion as Agent may reasonably require;

 

(iii)                If the Cost
To Repair does not exceed $250,000.00, the funds to pay therefor shall be
released to Borrower, otherwise, funds shall be released upon final completion
of the Repair Work, unless Borrower requests earlier funding, in which event
partial monthly disbursements equal to 95% of the value of the work completed
shall be made prior to final completion of the repair, restoration or
replacement and the balance of the disbursements shall be made upon full
completion and the receipt by Agent of satisfactory evidence of payment and
release of all liens, provided further that Agent shall release funds for the
payment of any contract, subcontract or materialman that has completed all of
such contract’s work in accordance with its contract upon reasonably
satisfactory evidence of completion and delivery of appropriate lien waivers;

 

(iv)               Determination
by Agent that the undisbursed balance of such proceeds on deposit with Agent,
together with additional funds deposited for the purpose, shall be at least
sufficient to pay for the remaining Cost To Repair, free and clear of all liens
and claims for lien;

 

(v)                All work to
comply with the standards, quality of construction and Legal Requirements
applicable to the original construction of the Property;

 

(vi)               each tenant of
the Property which might otherwise have a right to terminate its lease on
account of such Casualty shall have waived its right to so terminate
conditioned only upon the Repair Work being completed within a reasonable
period of time acceptable to Agent or such period as is expressly provided in
the applicable leases, whichever is longer, so long as the period does not
exceed the period for which rent loss insurance is available all such that upon
completion of the Repair Work the Loan To Value Ratio shall be satisfied and
the Debt Service Coverage covenant as projected by Agent will be complied with;
and

 

(vii)              the absence of
any Default under any Loan Documents.

 

Nothing herein shall limit Borrower’s
right to prepay the Loan at any time.

 

14.5            Taking.  If
there is any condemnation for public use of the Property or of any Collateral,
the awards on account thereof shall be paid to Agent and shall be applied to 

 

32

 

Borrower’s obligations, or
released to Borrower to pay for the Cost To Repair, in the same manner and
subject to the same thresholds and limitations set forth in Sections 14.3 and
14.4 hereof and such taking or condemnation shall not be deemed a violation of
Section 9.7.

 

15.          THE AGENT AND THE LENDERS.

 

15.1            Appointment of Agent.  Each Lender hereby irrevocably designates and
appoints Anglo Irish Bank Corporation plc as Agent of such Lender to act as
specified herein and in the other Loan Documents, and each such Lender hereby
irrevocably authorizes the Agent to take such actions, exercise such powers and
perform such duties as are expressly delegated to or conferred upon the Agent
by the terms of this Agreement and the other Loan Documents, together with such
other powers as are reasonably incidental thereto.  The Agent agrees to act as such upon the
express conditions contained in this Article 15.  The Agent shall not have any duties or
responsibilities except those expressly set forth herein or in the other Loan
Documents, nor shall it have any fiduciary relationship with any Lender, and no
implied covenants, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or otherwise exist against the Agent.  Except as set forth herein, the provisions of
this Article 15 are solely for the benefit of the Agent and the Lenders,
and the Borrower shall not have any rights as a third party beneficiary of any
of the provisions hereof.

 

15.2            Administration of Loans by Agent.  The Agent shall be responsible for
administering the Loans on a day-to-day basis. 
In the exercise of such administrative duties, the Agent shall use the
same diligence and standard of care that is customarily used by the Agent with
respect to similar loans held by the Agent solely for its own account.  Borrower may rely, without inquiry, on any
waiver or action by Agent under the Loan Documents if Agent indicates such
waiver or action is taken as Agent on behalf of the Lenders.

 

Each Lender delegates to the Agent the full right
and authority on its behalf to take the following specific actions in
connection with its administration of the Loans:

 

(i)                  to fund the
Loans in accordance with the provisions of the Loan Documents, but only to the
extent of immediately available funds provided to the Agent by the respective
Lenders for such purpose;

 

(ii)                 to receive
all payments of principal, interest, fees and other charges paid by, or on
behalf of, the Borrower and, except for fees to which the Agent is entitled
pursuant to the Loan Documents or otherwise, to distribute all such funds to
the respective Lenders as provided for hereunder;

 

(iii)                to keep and
maintain complete and accurate files and records of all material matters
pertaining to the Loans, and make such files and records available for
inspection and copying by each Lender and its respective employees and agents
during normal business hours upon reasonable prior notice to the Agent; and

 

(iv)               to do or omit
doing all such other actions as may be reasonably necessary or incident to the
implementation, administration and servicing of the Loans and the rights and
duties delegated hereinabove.

 

33

 

15.3            Delegation of Duties.  The Agent may execute any of its duties under
this Loan Agreement or any other Loan Document by or through its agent or
attorneys-in-fact, and shall be entitled to the advice of counsel concerning
all matters pertaining to its rights and duties hereunder or under the Loan
Documents.  The Agent shall not be
responsible to the other Lenders for the negligence or misconduct of any agents
or attorneys-in-fact selected by it with reasonable care.

 

15.4            Exculpatory Provisions.  Neither the Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates shall be liable
to any other Lenders for any action lawfully taken or omitted to be taken by it
or them under or in connection with this Agreement or the other Loan Documents,
except for its or their gross negligence or willful misconduct.  Neither the Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates shall be
responsible for or have any duty to ascertain, inquire into, or verify (i) any
recital, statement, representation or warranty made by the Borrower or any of
its officers or agents contained in this Agreement or the other Loan Documents
or in any certificate or other document delivered in connection therewith; (ii) the
performance or observance of any of the covenants or agreements contained in,
or the conditions of, this Agreement or the other Loan Documents; (iii) the
state or condition of any properties of the Borrower or any other obligor
hereunder constituting Collateral for the Obligations of the Borrower
hereunder, or any information contained in the books or records of the
Borrower; (iv) the validity, enforceability, collectibility, effectiveness
or genuineness of this Loan Agreement or any other Loan Document or any other
certificate, document or instrument furnished in connection therewith; or (v) the
validity, priority or perfection of any lien securing or purporting to secure
the Obligations or the value or sufficiency of any of the Collateral.

 

15.5            Reliance by Agent. 
The Agent shall be entitled to rely, and shall be fully protected in
relying, upon any notice, consent, certificate, affidavit, or other document or
writing believed by it to be genuine and correct and to have been signed, sent
or made by the proper person or persons, and upon the advice and statements of
legal counsel (including, without limitation, counsel to the Borrower),
independent accountants and other experts selected by the Agent.  The Agent shall be fully justified in failing
or refusing to take any action under this Agreement or any other Loan Document
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 the taking or failing to take any such
action.  The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement
and the other Loan Documents in accordance with any written request of the
Majority Lenders, and each such request of the Majority Lenders, and any action
taken or failure to act by the Agent pursuant thereto, shall be binding upon
all of the Lenders; provided, however, that the Agent shall not be required in
any event to act, or to refrain from acting, in any manner which is contrary to
the Loan Documents or to applicable law.

 

15.6            Notice of Default. 
The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Event of Default unless the Agent has actual knowledge of the
same or has received notice from a Lender or the Borrower referring to this
Agreement, describing such Event of Default and stating that such notice is a “notice
of default”.  In the event that the Agent
obtains such actual knowledge or receives such a notice, the Agent shall give
prompt notice 

 

34

 

thereof to each of the
Lenders.  The Agent shall take such
action with respect to such Event of Default as shall be reasonably directed by
the Majority Lenders.  Unless and until
the Agent shall have received such direction, the Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to any such Event of Default as it shall deem advisable in the best
interest of the Lenders.

 

15.7            Lenders’ Credit Decisions.  Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender, and
based on the financial statements prepared by the Borrower and such other
documents and information as it has deemed appropriate, made its own credit
analysis and investigation into the business, assets, operations, property, and
financial and other condition of the Borrower and has made its own decision to
enter into this Agreement and the other Loan Documents.  Each Lender also acknowledges that it will,
independently and without reliance upon the 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 determining whether or not
conditions precedent to closing any Loan hereunder have been satisfied and in
taking or not taking any action under this Agreement and the other Loan
Documents.

 

15.8            Agent’s Reimbursement and Indemnification.  The Lenders agree to reimburse and indemnify
the Agent, ratably in proportion to their respective Commitments, for (i) any
amounts not reimbursed by the Borrower for which the Agent is entitled to
reimbursement by the Borrower under this Agreement or the other Loan Documents,
(ii) any other expenses incurred by the Agent on behalf of the Lenders in
connection with the preparation, execution, delivery, administration,
amendment, waiver and/or enforcement of this Agreement and the other Loan
Documents, and (iii) any liabilities, obligations, losses, damages,
penalties, action, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Agent in any way relating to or arising out of this Agreement or
the other Loan Documents or any other document delivered in connection
therewith or any transaction contemplated thereby, or the enforcement of any of
the terms hereof or thereof, provided that no Lender shall be liable for any of
the foregoing to the extent that they arise from the gross negligence or
willful misconduct of the Agent.  If any
indemnity furnished to the Agent for any purpose shall, in the opinion of the
Agent, be insufficient or become impaired, the Agent may call for additional
indemnity and cease, or not commence, to do the action indemnified against
until such additional indemnity is furnished.

 

15.9            Agent in its Individual Capacity.  With respect to its Commitment as a Lender,
and the Loans made by it and the Note issued to it, the Agent shall have the
same rights and powers hereunder and under any other Loan Document as any
Lender and may exercise the same as though it were not the Agent, and the term “Lender”
or “Lenders” shall, unless the context otherwise indicates, include the Agent
in its individual capacity.  The Agent
may accept deposits from, lend money to, and generally engage in any kind of
banking or trust business with the Borrower or any subsidiary or affiliate of
the Borrower as if it were not the Agent hereunder.

 

15.10          Successor Agent. 
The Agent may resign at any time by giving thirty (30) days’ prior
written notice to the Lenders and Borrower. 
The Majority Lenders, for good cause, may remove Agent at any time by
giving thirty (30) days’ prior written notice to the Agent, the Borrower and
the other Lenders.  Upon any such
resignation or removal, the Majority Lenders 

 

35

 

shall have the right to
appoint a successor Agent.  If no
successor Agent shall have been so appointed by the Majority Lenders and
accepted such appointment within thirty (30) days after the retiring Agent’s
giving notice of resignation or the Majority Lenders’ giving notice of removal,
as the case may be, then the retiring Agent may appoint, on behalf of the
Borrower and the Lenders, a successor Agent. 
Each such successor Agent shall be a financial institution which meets
the requirements of an Eligible Assignee. 
Unless an Event of Default shall have occurred and be continuing, any
successor Agent shall be reasonably acceptable to the Borrower.  Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations hereunder and under the other Loan Documents.  After any retiring Agent’s resignation
hereunder, the provisions of this Article 15 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Agent hereunder.

 

15.11          Duties in the Case of Enforcement.  In the case one or more Events of Default
have occurred and shall be continuing, and whether or not acceleration of the
Obligations shall have occurred, the Agent shall, at the request, or may, upon
the consent, of the Majority Lenders, and provided that the Lenders have given
to the Agent such additional indemnities and assurances against expenses and
liabilities as the Agent may reasonably request, proceed to enforce the
provisions of this Loan Agreement and the other Loan Documents respecting the
foreclosure of mortgages, the sale or other disposition of all or any part of
the Collateral and the exercise of any other legal or equitable rights or
remedies as it may have hereunder or under any other Loan Document or otherwise
by virtue of applicable law, or to refrain from so acting if similarly
requested by the Majority Lenders.  The
Agent shall be fully protected in so acting or refraining from acting upon the
instruction of the Majority Lenders, and such instruction shall be binding upon
all the Lenders.  The Majority Lenders
may direct the Agent in writing as to the method and the extent of any such foreclosure,
sale or other disposition or the exercise of any other right or remedy, the
Lenders hereby agreeing to indemnify and hold the Agent harmless from all costs
and liabilities incurred in respect of all actions taken or omitted in
accordance with such direction, provided that the Agent need not comply with
any such direction to the extent that the Agent reasonably believes the Agent’s
compliance with such direction to be unlawful or commercially unreasonable in
any applicable jurisdiction.  The Agent
may, in its discretion but without obligation, in the absence of direction from
the Majority Lenders, take such interim actions as it believes necessary to
preserve the rights of the Lenders hereunder and in and to any Collateral
securing the Obligations, including but not limited to petitioning a court for
injunctive relief, appointment of a receiver or preservation of the proceeds of
any Collateral.  Each of the Lenders
acknowledges and agrees that no individual Lender may separately enforce or
exercise any of the provisions of any of the Loan Documents, including without
limitation the Notes, other than through the Agent.

 

15.12          Respecting Loans and Payments.

 

15.12.1           Procedures for Loans.  Agent shall give written notice to each
Lender of each request for a conversion of an existing Loan from a Variable
Rate Advance to a LIBO Rate Advance, by facsimile transmission, hand delivery
or overnight courier, not later than 11:00 a.m. (Boston time) (i) three
(3) Business Days prior to any LIBO Rate 

 

36

 

Advance or conversion to a
LIBO Rate Advance, or (ii) one (1) Business Day prior to any Variable
Rate Advance.  Each such notice shall be
accompanied by a written summary of the request for a Loan and shall specify (a) the
date of the requested Loan, (b) the aggregate amount of the requested
Loan, (c) each Lender’s pro rata share of the requested Loan, and (d) the
applicable interest rate selected by Borrower with respect to such Loan, or any
portion thereof, together with the applicable Interest Period, if any,
selected, or deemed selected, by Borrower. 
Each Lender shall, before 11:00 a.m. (Boston time) on the date set
forth in any such request for a Loan, make available to Agent, at an account to
be designated by Agent at Anglo Irish Bank Corporation plc, in same day funds,
each Lender’s ratable portion of the requested Loan.  After Agent’s receipt of such funds and upon
Agent’s determination that the applicable conditions to making the requested
Loan have been fulfilled, Agent shall make such funds available to Borrower as
provided for in this Loan Agreement. 
Within a reasonable period of time following the making of each Loan,
but in no event later than ten (10) Business Days following such Loan,
Agent shall deliver to each Lender a copy of Borrower’s request for Loans.  Promptly after receipt by Agent of written
request from any Lender, Agent shall deliver to the requesting Lender the
accompanying certifications and such other instruments, documents, certifications
and approvals delivered by or on behalf of Borrower to Agent in support of the
requested Loan.

 

15.12.2           Nature of Obligations of Lenders.  The obligations of the Lenders hereunder are
several and not joint.  Failure of any
Lender to fulfill its obligations hereunder shall not result in any other
Lender becoming obligated to advance more than its Commitment Percentage of the
Loans, nor shall such failure release or diminish the obligations of any other
Lender to fund its Commitment Percentage provided herein.

 

15.12.3           Payments to Agent.  All payments of principal of and interest on
the Loans or the Notes shall be made to the Agent by the Borrower or any other
obligor or guarantor for the account of the Lenders in immediately available
funds as provided in the Notes and this Agreement.  The Agent agrees promptly to distribute to
each Lender, on the same Business Day upon which each such payment is made if
possible, such Lender’s proportionate share of each such payment in immediately
available funds, except as otherwise expressly provided herein.  The Agent shall upon each distribution
promptly notify Borrower of such distribution and each Lender of the amounts
distributed to it applicable to principal of, and interest on, the
proportionate share held by the applicable Lender.  Each payment to the Agent under the first
sentence of this Section 15.12.3 shall constitute a payment by the
Borrower to each Lender in the amount of such Lender’s proportionate share of
such payment, and any such payment to the Agent shall not be considered
outstanding for any purpose after the date of such payment by the Borrower to
the Agent without regard to whether or when the Agent makes distribution
thereof as provided above.  If any payment
received by the Agent from the Borrower is insufficient to pay both all accrued
interest and all principal then due and owing, the Agent shall first apply such
payment to all outstanding interest until paid in full and shall then apply the
remainder of such payment to all principal then due and owing, and shall
distribute the payment to each Lender accordingly.

 

37

 

15.12.4                                Distribution of
Liquidation Proceeds.  Subject to
the terms and conditions hereof, the Agent shall distribute all Liquidation
Proceeds in the order and manner set forth below:

 

First:                                              To the Agent,
towards any fees and any expenses for which the Agent is entitled to
reimbursement under this Agreement or the other Loan Documents not theretofore
paid to the Agent.

 

Second:                             To all
applicable Lenders in accordance with their proportional share based upon their
respective Commitment Percentages until all Lenders have been reimbursed for
all expenses which such Lenders have previously paid to the Agent and not
theretofore paid to such Lenders.

 

Third:                                        To all
applicable Lenders in accordance with their proportional share based upon their
respective Commitment Percentages until all Lenders have been paid in full all
other amounts due to such Lenders under the Loans including, without
limitation, any costs and expenses incurred directly by such Lenders to the
extent such costs and expenses are reimbursable to such Lenders by the Borrower
under the Loan Documents.

 

Fourth:                                 To all Lenders
in accordance with their proportional share based upon their respective
Commitment Percentages until all Lenders have been paid in full all principal
and interest due to such Lenders under the Loans, with each Lender applying
such proceeds for purposes of this Agreement to the outstanding principal
balance due to such Lender and to accrued and unpaid interest due under the
Loans, in such order or preference as the Agent may determine.

 

Fifth:                                           To the Borrower
or such third parties as may be entitled to claim Liquidation Proceeds.

 

15.12.5                                Adjustments.  If, after Agent has paid each Lender’s
proportionate share of any payment received or applied by Agent in respect of
the Loans, that payment is rescinded or must otherwise be returned or paid over
by Agent, whether pursuant to any bankruptcy or insolvency law, sharing of
payments clause of any loan agreement or otherwise, such Lender shall, at Agent’s
request, promptly return its proportionate share of such payment or application
to Agent, together with the Lender’s proportionate share of any interest or
other amount required to be paid by Agent with respect to such payment or
application.

 

15.12.6                                Distribution by
Agent.  If in the opinion of the Agent
distribution of any amount received by it in such capacity hereunder or under
the Notes or under any of the other Loan Documents might involve any liability,
it may refrain from making distribution until its right to make distribution shall
have been adjudicated by a court of competent jurisdiction or has been resolved
by the mutual consent of all Lenders.  In
addition, the Agent may request full and complete indemnity, in form and
substance satisfactory to it, prior to making any such distribution.  If a court of competent jurisdiction shall
adjudge that any amount received and distributed by the Agent is to be repaid,
each person to whom any such distribution shall have been made shall either 

 

38

 

repay to the Agent its
proportionate share of the amount so adjudged to be repaid or shall pay over to
the same in such manner and to such persons as shall be determined by such
court.

 

15.12.7                                Actions by
Agent.  The Majority Lenders may direct
the Agent in writing as to the method and the extent of any sale of the
Collateral or other disposition and shall indemnify and hold the Agent harmless
from all liabilities incurred in respect to all actions taken or omitted in
accordance with such directions provided that Agent need not comply with any
such directions to the extent Agent reasonably believes the Agent’s compliance
with such directions would constitute a violation of the obligations undertaken
by the Agent and/or Lenders under the Loan Documents, or will constitute a
violation of any statute, ordinance or regulation applicable to the Agent.

 

15.13                              Delinquent
Lender.  If for any reason any Lender
shall fail or refuse to abide by its obligations under the Agreement, including
without limitation its obligation to make available to Agent its pro rata share
of any Loan, expenses or setoff (a “Delinquent Lender”) and such failure is not
cured within ten (10) days of receipt from the Agent of written notice
thereof, then, in addition to the rights and remedies that may be available to
Agent, other Lenders, the Borrower or any other party at law or in equity, and
not at limitation thereof, (i) such Delinquent Lender’s right to
participate in the administration of, or decision-making rights related to, the
Loans, this Agreement or the other Loan Documents shall be suspended during the
pendency of such failure or refusal, and (ii) a Delinquent Lender shall be
deemed to have assigned any and all payments due to it from the Borrower,
whether on account of the outstanding Loans, interest, fees or otherwise, to
the remaining non-delinquent Lenders for application to, and reduction of,
their proportionate shares of the outstanding Loans until, as a result of
application of such assigned payments the Lenders’ respective pro rata shares
of all the outstanding Loans shall have returned to those in effect immediately
prior to such delinquency and without giving effect to the nonpayment causing
such delinquency.  The Delinquent Lender’s
decision-making and participation rights to payments as set forth in clauses (i) and
(ii) hereinabove shall be restored only upon the payment by the Delinquent
Lender of its pro rata share of any Loans or expenses as to which it is
delinquent, together with interest thereon at the Default Rate from the date
when originally due until the date upon which any such amounts are actually
paid.

 

The non-delinquent Lenders shall also have the
right, but not the obligation, in their respective, sole and absolute
discretion, to acquire for no cash consideration, (pro rata, based on the
respective Commitments of those Lenders electing to exercise such right) the
Delinquent Lender’s Commitment to fund future Loans (the “Future Commitment”).  Upon any such purchase of the pro rata share
of any Delinquent Lender’s Future Commitment, the Delinquent Lender’s share in
future Loans and its rights under the Loan Documents with respect thereto shall
terminate on the date of purchase, and the Delinquent Lender shall promptly
execute all documents reasonably requested to surrender and transfer such
interest, including, if so requested, an Assignment and Acceptance.  Each Delinquent Lender shall indemnify Agent
and each non-delinquent Lender from and against any and all loss, damage or
expenses, including but not limited to reasonable attorneys’ fees and funds
advanced by Agent or by any non-delinquent Lender, on account of an Delinquent
Lender’s failure to timely fund its pro rata share of a Loan or to otherwise
perform its obligations under the Loan Documents.

 

39

 

15.14                              Holders.  The Agent may deem and treat the payee of any
Note as the owner thereof for all purposes hereof unless and until a written
notice of the assignment, transfer or endorsement thereof, as the case may be,
shall have been filed with the Agent. 
Any request, authority or consent of any person or entity who, at the
time of making such request or giving such authority or consent, is the holder
of any Note shall be conclusive and binding on any subsequent holder,
transferee or endorsee, as the case may be, of such Note or of any Note or
Notes issued in exchange therefor.

 

15.15                              Assignment and
Participation.

 

15.15.1                                Conditions to
Assignment by Lenders. 
Except as provided herein, each Lender may assign to one or more
Eligible Assignees all or a portion of its interests, rights and obligations
under this Agreement (including all or a portion of its Commitment Percentage
and Commitment and the same portion of the Loans at the time owing to it and the
Notes held by it), upon satisfaction of the following conditions: (a) each
of the Agent and the Borrower shall have given its prior written consent to
such assignment (provided that, in the case of the Borrower, such consent will
not be unreasonably withheld and shall not be required if a Default or Event of
Default shall have occurred and be continuing), (b) each such assignment
shall be of a constant, and not a varying, percentage of all the assigning
Lender’s rights and obligations under this Agreement, (c) prior to the
occurrence of an Event of Default and while same is continuing each assignment
shall be in an amount that is at least Fifteen Million Dollars ($15,000,000.00)
and is a whole multiple of One Million Dollars ($1,000,000.00), (d) prior
to the occurrence of an Event of Default and while same is continuing each
Lender which is a Lender at the time of such assignment shall retain, free of
any such assignment, an amount of its Commitment of not less than Fifteen
Million Dollars ($15,000,000.00), (e) prior to the occurrence of an Event
of Default and while same is continuing the Agent, in its individual capacity
as a Lender, shall retain, free of any such assignment, an amount of its
Commitment of not less than Ten Million Dollars ($10,000,000.00), (f) the
parties of such assignment shall execute and deliver to the Agent, for
recording in the Register (as hereinafter defined), an Assignment and
Acceptance, substantially in the form of Exhibit E hereto (an “Assignment
and Acceptance”), together with any Notes subject to such assignment, and (g) so
long as no Default or Event of Default has occurred and is continuing, Anglo
Irish Bank Corporation PLC shall remain as Agent.  Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and
Acceptance, which effective date shall be at least five (5) Business Days
after the execution thereof, (x) the assignee 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, and (y) the assigning Lender
shall, to the extent provided in such assignment and upon payment to the Agent
of the registration fee referred to in Section 15.15.3, be released from
its obligations under this Agreement. 
Notwithstanding anything herein to the contrary, in no event will there
be more than three Lenders participating in the Loan, including Agent.  Borrower may rely on the provisions of this Section 15.15.

 

40

 

15.15.2                                Certain
Representations and Warranties: Limitations, Covenants.  By executing and delivering an Assignment and
Acceptance, the parties to the assignment thereunder confirm to and agree with
each other and the other parties hereto as follows:

 

(i)                                                     other than the
representation and warranty that it is the legal and beneficial owner of the
interest being assigned thereby free and clear of any adverse claim, the
assigning Lender makes no representation or warranty, express or implied, and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or the attachment, perfection or priority of any
security interest or mortgage;

 

(ii)                                                  the
assigning  Lender makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of the Borrower and its affiliates, related entities or subsidiaries
or any other person primarily or secondarily liable in respect of any of the
Obligations, or the performance or observance by the Borrower or any other
person primarily secondarily liable in respect of any of the Obligations or any
of their obligations under this Agreement or any of the other Loan Documents or
any other instrument or document furnished pursuant hereto or thereto;

 

(iii)                                               such assignee
confirms that it has received a copy of this Agreement, together with copies of
the most recent financial statement provided by the Borrower as required by the
terms of this Agreement, together with such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter
into such Assignment and Acceptance;

 

(iv)                                              such assignee
will, independently and without reliance upon the assigning Lender, the 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 this Agreement;

 

(v)                                                 such assignee
represents and warrants that it is an Eligible Assignee if required hereunder;

 

(vi)                                              such assignee
appoints and authorizes the Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the other Loan Documents
as are delegated to the Agent by the terms hereof or thereof, together with
such powers as are reasonably incidental thereto;

 

(vii)                                           such assignee
agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as a Lender; and

 

(viii)                                        such assignee
represents and warrants that it is legally authorized to enter into such
Assignment and Acceptance.

 

41

 

15.15.3                                Register.  The Agent shall maintain a copy of each
Assignment and Acceptance delivered to it and a register or similar list (the “Register”)
for the recordation of the names and addresses of the Lenders and the
Commitment Percentage of, and principal amount of the Loans owing to the
Lenders from time to time.  The entries
in the Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Agent and the Lenders may treat each person whose name is
recorded in the Register as a Lender hereunder for all purposes of this
Agreement.  The Register shall be
available for inspection by the Borrower and the Lenders at any reasonable time
and from time to time upon reasonable prior notice.  Upon each such recordation, the assigning
Lender agrees to pay to the Agent a registration fee in the sum of Three Thousand
Five Hundred Dollars ($3,500.00).

 

15.15.4                                New Notes.  Upon its receipt of an Assignment and
Acceptance executed by the parties to such assignment, together with each Note
subject to such assignment, the Agent shall (a) record the information
contained therein in the Register, and (b) give prompt notice thereof to
the Borrower and the Lenders (other than the assigning Lender).  Within five (5) Business Days after
receipt of such notice, the Borrower, at its own expense, shall execute and
deliver to the Agent, in exchange for each surrendered Note, a new Note to the
order of such Eligible Assignee in an amount equal to the amount assumed by
such Eligible Assignee pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained some portion of its obligations hereunder, a new
Note to the order of the assigning Lender in an amount equal to the amount
retained by it hereunder.  Such new Notes
shall provide that they are replacements for the surrendered Notes, shall be in
an aggregate principal amount equal to the aggregate principal amount of the
surrendered Notes, shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be substantially in the form of the assigned
Notes.  Within ten (10) Business
Days of issuance of any new Notes pursuant to this Section 15.15.4, the
Borrower shall deliver an opinion of counsel, addressed to the Lenders and the
Agent, relating to the due authorization, execution and delivery of such new
Notes and the legality, validity and binding effect thereof, in form and substance
satisfactory to the Lenders.  The
surrendered Notes shall be canceled and returned to the Borrower.

 

15.15.5                                Participations.  Each Lender may sell participations to one or
more banks or other financial institutions in all or a portion of such Lender’s
rights and obligations under this Agreement and the other Loan Documents;
provided that (a) each such participation shall be in a minimum amount of
Ten Million Dollars ($10,000,000.00), (b) each participant shall meet the
requirements of an Eligible Assignee, (c) any such sale or participation
shall not affect the rights and duties of the selling Lender hereunder to the
Borrower, and (d) the only rights granted to the participant pursuant to
such participation arrangements with respect to waivers, amendments or
modifications of the Loan Documents shall be the rights to approve waivers,
amendments or modifications that would reduce the principal of or the interest
rate on any Loans, extend the term or increase the amount of the Commitment of
such Lender as it relates to such participant, reduce the amount of any
commitment fees to which such participant is entitled or extend any regularly
scheduled payment date for principal or interest.

 

42

 

15.15.6                                No Cost to Borrower.  Agent and the Lenders agree that Borrower
shall not bear any costs incurred or charged by Agent, Lenders, any Assignee or
Participant associated with the assignment and participation of the Loan as
provided for under this Agreement.

 

15.16                              Disclosure.  The Borrower agrees that in addition to
disclosures made in accordance with standard and customary banking practices
any Lender may disclose information obtained by such Lender pursuant to this
Agreement to assignees or participants and potential assignees or participants
hereunder; provided that such assignees or participants or potential assignees
or participants shall agree (a) to treat in confidence such information
unless such information otherwise becomes public knowledge, (b) not to
disclose such information to a third party, except as required by law or legal
process and (c) not to make use of such information for purposes of
transactions unrelated to such contemplated assignment or participation.

 

15.17                              Miscellaneous
Assignment Provisions.  Any
assigning Lender shall retain its rights to be indemnified pursuant to Section 9.16
with respect to any claims or actions arising prior to the date of such
assignment.  If any assignee Lender is
not incorporated under the laws of the United States of America or any state
thereof, it shall, prior to the date on which any interest or fees are payable
hereunder or under any of the other Loan Documents for its account, deliver to
the Borrower and the Agent certification as to its exemption from deduction or withholding
of any United States federal income taxes. 
Anything contained in this Section 15.17 to the contrary
notwithstanding, any Lender may at any time pledge all or any portion of its
interest and rights under this Agreement (including all or any portion of its
Notes to any of the twelve Federal Reserve Banks organized under §4 of the
Federal Reserve Act, 12 U.S.C.§341).  No
such pledge or the enforcement thereof shall release the pledgor Lender from
its obligations hereunder or under any of the other Loan Documents.

 

15.18                              Assignment by
Borrower.  Except as
expressly set forth herein, the Borrower shall not assign or transfer any of
its rights or obligations under any of the Loan Documents without the prior
written consent of each of the Lenders.

 

15.19                              Administrative
Matters.

 

15.19.1                                Amendment,
Waiver, Consent, Etc.  Except as otherwise provided herein or as to
any term or provision hereof which provides for the consent or approval of the
Agent, no term or provision of this Agreement or any other Loan Document may be
changed, waived, discharged or terminated, nor may any consent required or
permitted by this Agreement or any other Loan Document be given, unless such
change, waiver, discharge, termination or consent receives the written approval
of the Majority Lenders.

 

Notwithstanding the foregoing, the unanimous written
approval of all the Lenders (other than a Defaulting Lender) shall be required
with respect to any proposed amendment, waiver, discharge, termination, or
consent which:

 

(i)                                                     has the effect
of (a) extending the final scheduled maturity or the date of any
amortization payment of any Loan or Note, (b) reducing the rate or
extending the time of payment of interest or fees thereon, (c) increasing
or reducing the principal 

 

43

 

amount
thereof, or (d) otherwise postponing or forgiving any indebtedness
thereunder,

 

(ii)                                                  releases or
discharges any material portion of the Collateral other than in accordance with
the express provisions of the Loan Documents,

 

(iii)                                               amends,
modifies or waives any provisions of this paragraph,

 

(iv)                                              amends any of
the financial covenants set forth in Sections 9.18 and 9.19 of this Agreement,

 

(v)                                                 reduces the
percentage specified in the definition of Majority Lenders,

 

(vi)                                              except as
otherwise provided in this Agreement, change the amount of any Lender’s
Commitment or Commitment Percentage, or

 

(vii)                                           releases or
waives any guaranty of the Obligations or indemnifications provided in the Loan
Documents;

 

and provided, further, that without the consent of the
Agent, no such action shall amend, modify or waive any provision of this Article 15.19
or any other provisions of any Loan Document which relates to the rights or
obligations of the Agent.

 

15.20                              Deemed Consent
or Approval.  With
respect to any requested amendment, waiver, consent or other action which
requires the approval of the Majority Lenders or all of the Lenders, as the
case may be, in accordance with the terms of this Agreement, or if the Agent is
required hereunder to seek, or desires to seek, the approval of the Majority
Lenders or all of the Lenders, as the case may be, prior to undertaking a
particular action or course of conduct, the Agent in each such case shall
provide each Lender with written notice of any such request for amendment,
waiver or consent or any other requested or proposed action or course of
conduct, accompanied by such detailed background information and explanations
as may be reasonably necessary to determine whether to approve or disapprove such
amendment, waiver, consent or other action or course of conduct.  The Agent may (but shall not be required to)
include in any such notice, printed in capital letters or boldface type, a
legend substantially to the following effect;

 

“THIS COMMUNICATION REQUIRES IMMEDIATE RESPONSE.  FAILURE TO RESPOND WITHIN TEN (10) CALENDAR
DAYS FROM THE RECEIPT OF THIS COMMUNICATION SHALL CONSTITUTE A DEEMED APPROVAL
BY THE ADDRESSEE OF THE ACTION REQUESTED BY THE BORROWER OR THE COURSE OF
CONDUCT PROPOSED BY THE AGENT AND RECITED ABOVE.”

 

and if the foregoing legend is included by the Agent in its
communication, a Lender shall be deemed to have approved or consented to such
action or course of conduct for all purposes hereunder if such Lender fails to
object to such action or course of conduct by written notice to the Agent
within ten (10) calendar days of such Lender’s receipt of such notice.

 

44

 

16.                               GENERAL
PROVISIONS.

 

16.1                                     Notices.  Any notice or other communication in
connection with this Loan Agreement, the Note, the Mortgage, or any of the
other Loan Documents, shall be in writing, and (i) deposited in the United
States Mail, postage prepaid, by registered or certified mail, or (ii) hand
delivered by any commercially recognized courier service or overnight delivery
service such as Federal Express:

 

If to Borrower:

 

c/o STAG Capital Partners

99 Chauncy Street, 10th Floor

Boston, Massachusetts 02111

Attention:                                         Stephen C.
Mecke

                                                                                                Chief
Investment Officer

 

with copies by regular mail or such hand delivery
to:

 

DLA Piper Rudnick Gray Cary US LLP

33 Arch Street, 26th Floor

Boston, Massachusetts 02110-2600

Attention:                                         John L.
Sullivan, Esquire

 

and to:

 

New England Development

1 Wells Avenue, 4th Floor

Newton, Massachusetts 02459

Attention:                                         Gregory
Sullivan

 

If to Agent:

 

Anglo Irish Bank Corporation plc

265 Franklin Street

Boston, Massachusetts 02110

Attention:                                         Aidan C. Hume

 

with copies by regular mail or such hand delivery
to:

 

Riemer & Braunstein LLP

Three Center Plaza

Boston, Massachusetts 02108

Attention:                                         Kevin J. Lyons,
Esquire

 

and to such addresses as set forth in the Assignment and Acceptance.

 

Any such addressee may change its address for such
notices to such other address in the United States as such addressee shall have
specified by written notice given as set forth above.

 

45

 

All periods of notice shall be measured from the deemed date of
delivery.

 

A notice shall be deemed to have been given,
delivered and received for the purposes of all Loan Documents upon the earliest
of: (i) if sent by such certified or registered mail, on the date of
actual receipt at evidenced by the return receipt, or (ii) if hand
delivered at the specified address by such courier or overnight delivery
service, when so delivered or tendered for delivery during customary business
hours on a Business Day.

 

16.2                                     Limitations on
Assignment.  Except for
a Permitted Transaction, Borrower may not assign this Agreement or the monies
due thereunder or convey or, except for a Permitted Transaction, encumber a
Property or other Collateral or any interest therein without the prior written
consent of the Majority Lenders in each instance.

 

16.3                                     Further
Assurances.  Each
Borrower shall upon request from Agent from time to time execute, seal,
acknowledge and deliver such further instruments or documents which Agent may reasonably
require to better perfect and confirm its rights and remedies hereunder, under
the Note, under the Mortgage and under each of the other Loan Documents,

 

16.4                                     Parties Bound.  The provisions of this Agreement and of each
of the other Loan Documents shall be binding upon and inure to the benefit of
each Borrower, Agent and each of the Lenders and their respective successors
and assigns, except as otherwise prohibited by this Agreement or any of the
other Loan Documents.  This Agreement is
a contract by and among each Borrower, Agent and each of the Lenders for their
mutual benefit, and no third person shall have any right, claim or interest
against either Agent, or any Lender or a Borrower by virtue of any provision
hereof.

 

16.5                                     Waivers,
Extensions and Releases. 
Except as otherwise provided herein, Agent may, unless otherwise
directed by the Majority Lenders, at any time and from time to time waive any
one or more of the conditions contained herein or in any of the other Loan
Documents, or extend the time of payment of the Loan, or release portions of
the Collateral from the provisions of this Agreement and from the Mortgage or
any other Security Document, but any such waiver, extension or release shall be
deemed to be made in pursuance and not in modification hereof, and any such
waiver in any instance, or under any particular circumstance, shall not be
considered a waiver of such condition in any other instance or any other
circumstance.

 

16.6                                     Governing Law;
Consent to Jurisdiction; Mutual Waiver of Jury Trial.

 

16.6.1                                       Substantial
Relationship.  It is
understood and agreed that all of the Loan Documents were negotiated, executed
and delivered in the Commonwealth of
Massachusetts, which Commonwealth
the parties agree has a substantial relationship to the parties and to the
underlying transactions embodied by the Loan Documents.

 

16.6.2                                       Place of
Delivery.  Each
Borrower agrees to furnish to Agent at the Agent’s office in Boston, Massachusetts all further
instruments, certifications and documents to be furnished hereunder.

 

16.6.3                                       Governing Law.  This Agreement, except as otherwise provided in Section 16.6.4, and each of
the other Loan Documents shall in all respects be governed, 

 

46

 

construed, applied and
enforced in accordance with the internal laws of the Commonwealth of Massachusetts without regard to principles of
conflicts of law.

 

16.6.4                                       Exceptions.  Notwithstanding the foregoing choice of law:

 

(i)                                                     matters
relating to the creation, perfection, priority and enforcement of the liens on
and security interests in the Property or other assets situated in another
jurisdiction, including by way of illustration, but not in limitation, actions
for foreclosure, for injunctive relief, or for the appointment of a receiver,
shall be governed by the laws of the such state;

 

(ii)                                                  Agent and each
of the Lenders shall comply with applicable law in such state to the extent
required by the law of such jurisdiction in connection with the foreclosure of
the security interests and liens created under the Mortgage and the other Loan
Documents with respect to the Property or other assets situated in another
jurisdiction; and

 

(iii)                                               provisions of
Federal law and the law of such other jurisdiction shall apply in defining the terms
Hazardous Materials, Environmental Legal Requirements and Legal Requirements
applicable to the Property as such terms are used in this Loan Agreement, the
Environmental Indemnity and the other Loan Documents.

 

Nothing contained herein or any other provisions of
the Loan Documents shall be construed to provide that the substantive laws of
such other jurisdiction shall apply to any parties’ rights and obligations
under any of the Loan Documents, which, except as expressly provided in clauses
(i), (ii) and (iii) of this Section 16.6.4., are and shall
continue to be governed by the substantive law of Commonwealth of
Massachusetts, except as set forth in clauses (i), (ii) and (iii) of
this Section 16.6.4. In addition, the fact that portions of the Loan Documents
may include provisions drafted to conform to the law of such other jurisdiction
is not intended, nor shall it be deemed, in any way, to derogate the parties,
choice of law as set forth or referred to in this Loan Agreement or in the
other Loan Documents.  The parties
further agree that the Agent may enforce its rights under the Loan Documents
including, but not limited to, its rights to sue the Borrower or to collect any
outstanding indebtedness in accordance with applicable law.

 

16.6.5                                       Consent to Jurisdiction.  Each Borrower hereby consents to personal
jurisdiction in any state or Federal court located within the Commonwealth of Massachusetts.

 

16.6.6                                       JURY TRIAL
WAIVER.  EACH BORROWER, AGENT, AND EACH
OF THE LENDERS MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS LOAN
AGREEMENT, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LOAN AGREEMENT OR
ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR
ANY COURSE OF CONDUCT, COURSE OF DEALINGS, 

 

47

 

STATEMENTS (WHETHER VERBAL
OR WRITTEN) OR ACTIONS OF ANY PARTY. 
THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR EACH BORROWER, AGENT
AND EACH OF THE LENDERS TO ENTER INTO THE TRANSACTIONS CONTEMPLATED HEREBY.

 

16.7                                     Survival.  All representations, warranties, covenants
and agreements of Borrower, or
Guarantor, herein or in any other Loan Document, or in any notice,
certificate, or other paper delivered by or on behalf of Borrower or Guarantor
pursuant hereto are significant and shall be deemed to have been relied upon by
Agent and each of the Lenders notwithstanding any investigation made by Agent
or any Lender or on its behalf and shall survive the delivery of the Loan
Documents and the making of the Loan and each advance pursuant thereto until
the Loan is repaid.  No review or
approval by Agent, or any Lender or by Lenders’ Consultants or any of
representatives, of any plans and specifications, opinion letters, certificates
by professionals or other item of any nature shall relieve Borrower or anyone
else of any of the obligations, warranties or representations made by or on
behalf of Borrower or Guarantor, or any
one or more of them, under any one or more of the Loan Documents.

 

16.8                                     Cumulative
Rights.  All of the rights of Agent and
the Lenders hereunder and under each of the other Loan Documents and any other
agreement now or hereafter executed in connection herewith or therewith, shall
be cumulative and may be exercised singly, together, or in such combination as
Agent may determine in its sole good faith judgment.

 

16.9                                     Claims Against
Agent or the Lenders.

 

16.9.1                                       Borrower Must
Notify.  Agent and each of the Lenders
shall not be in default under this Agreement, or under any other Loan Document,
unless a written notice specifically setting forth the claim of Borrower shall
have been given to Agent and each of the Lenders within one hundred eighty (180)  days
after Borrower first had actual knowledge or actual notice of the occurrence of
the event which Borrower alleges gave rise to such claim and Agent and each of
the Lenders do not remedy or cure the default, if any there be, with reasonable
promptness thereafter.  Such actual
knowledge or actual notice shall refer to what was actually known by, or
expressed in a written notification furnished to, any of the persons or
officials referred to in Exhibit C as Authorized Representatives.

 

16.9.2                                       Remedies.  If it is determined by the final order of a
court of competent jurisdiction, which is not subject to further appeal, that
Agent or any Lender has breached any of their obligations under the Loan
Documents and has not remedied or cured the same with reasonable promptness
following notice thereof, and the Agent’s and the Lenders’ responsibilities
shall be limited to: (i) where the breach consists of the failure to grant
consent or give approval in violation of the terms and requirements of a Loan
Document, the obligation to grant such consent or give such approval and to pay
Borrower’s reasonable costs and expenses including, without limitation,
reasonable attorneys, fees and disbursements in connection with such court
proceedings; and (ii) the case of any such failure to grant such consent
or give such approval, or in the case of any other such default by Agent or any
Lender, where it is also so determined that Agent or any Lender acted in bad
faith, or that Agent’s or any Lenders’ default constituted gross 

 

48

 

negligence or willful
misconduct, the payment of any actual, direct, compensatory damages sustained
by Borrower as a result thereof plus Borrower’s reasonable costs and expenses,
including, without limitation, reasonable attorneys’ fees and disbursements in
connection with such court proceedings.

 

16.9.3                                       Limitations.  In no event, however, shall Agent or the
Lenders be liable to Borrower or to
Guarantor or anyone else for other damages such as, but not limited to,
indirect, speculative or punitive damages whatever the nature of the breach by
Agent of its obligations under this Loan Agreement or under any of the other
Loan Documents.  In no event shall Agent
or any Lender be liable to Borrower or
to Guarantor or anyone else unless a written notice specifically setting
forth the claim of Borrower shall have been given to Agent and each of the
Lenders within the time period specified above.

 

16.10                              Obligations
Absolute.  Except to
the extent prohibited by applicable law which cannot be waived, the Obligations
of Borrower and the obligations of the
Guarantor under the Loan Documents shall be joint and several, absolute, unconditional and irrevocable and
shall be paid strictly in accordance with the terms of the Loan Documents under
all circumstances whatsoever, including, without limitation, the existence of
any claim, set off, defense or other right which Borrower or any Guarantor may have at any time
against Agent or any Lender whether in connection with the Loan or any
unrelated transaction, except for any
such claim, setoff, defense or other right, if any, as to which a written
notice shall have been given to Agent and each of the Lenders in accordance
with the provisions of Section 16.9.

 

16.11                              Table of
Contents, Title and Headings.  Any Table of Contents, the titles and the
headings of sections are not parts of this Loan Agreement or any other Loan
Document and shall not be deemed to affect the meaning or construction of any
of their provisions.

 

16.12                              Counterparts.  This Loan Agreement may be executed in several
counterparts, each of which when executed and delivered is an original, but all
of which together shall constitute one instrument.  In making proof of this agreement, it shall
not be necessary to produce or account for more than one such counterpart which
is executed by the party against whom enforcement of such loan agreement is
sought.

 

16.13                              Satisfaction of
Commitment.  The Loans
being made pursuant to the terms hereof and of the other Loan Documents is
being made in satisfaction of Agent’s and each of the Lenders’ obligations
under the discussion term sheet dated July 7, 2006.  The terms, provisions and conditions of this
Agreement and the other Loan Documents supersede the provisions of the term
sheet.

 

16.14                              Time Of the
Essence.  Time is of the essence of each
provision of this Agreement and each other Loan Document.

 

16.15                              Integration/No
Oral Change.  This Loan
Agreement and each of the other Loan Documents is intended by the parties as
the final, complete and exclusive statement of the transactions evidenced by
this Loan Agreement and the other Loan Documents.  All prior or contemporaneous promises,
agreements and understandings, whether oral or written, are deemed to be
superseded by this Loan Agreement and each of the Loan Documents, and no party
is 

 

49

 

relying on any promise,
agreement or understanding not set forth in this Loan Agreement or any of the
other Loan Documents. Further, this Loan Agreement and each of the other Loan
Documents may only be amended, terminated, extended or otherwise modified by a
writing signed by the party against which enforcement is sought (except no such
writing shall be required for any party which, pursuant to a specific provision
of any Loan Document, is required to be bound by changes without such party’s
assent).  In no event shall any oral
agreements, promises, actions, inactions, knowledge, course of conduct, course
of dealings or the like be effective to amend, terminate, extend or otherwise
modify this Loan Agreement or any of the other Loan Documents.

 

16.16                              Monthly
Statements.  While Agent
may issue invoices or other statements on a monthly or periodic basis (a “Statement”),
it is expressly acknowledged and agreed that, except as otherwise specifically
provided in the Loan Documents: (i) the failure of Agent to issue any
Statement on one or more occasions shall not affect Borrower’s obligations to
make payments under the Loan Documents as and when due; (ii) the
inaccuracy of any Statement shall not be binding upon Agent and so Borrower
shall always remain obligated to pay the full amount(s) required under the
Loan Documents as and when due notwithstanding any provision to the contrary
contained in any Statement; (iii) all Statements are issued for
information purposes only and shall never constitute any type of offer,
acceptance, modification, or waiver of the Loan Documents or any of Agent’s
rights or remedies thereunder; and (iv) in no event shall any Statement
serve as the basis for, or a component of, any course of dealing, course of
conduct, or trade practice which would modify, alter, or otherwise affect the
express written terms of the Loan Documents.

 

16.17                              Survival.  Notwithstanding anything else in the Loan
Documents to the contrary. the obligations and liabilities of Borrower under Section 9.16
shall terminate (except with respect to pending claims for indemnification
thereunder) six (6) months after (i) the date on which the Loan is
paid in full, or (ii) with respect to each portion of the Property, the date
on which Lender has released such portion of the Property as set forth in Section 9.21.
or (iii) the date on which Lender or its designee shall have acquired
possession of or title to the Property by foreclosure, deed in lieu of
foreclosure or otherwise in the exercise of remedies after an Event of Default,
provided that Borrower’s obligations and liabilities shall be limited to the
period of Borrower’s ownership of the Property.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

50

 

IN WITNESS WHEREOF this Agreement has been duly
executed and delivered as of the date
first written above.

 

	
  BORROWER:

  	
  STAG III ALBION, LLC, a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
   

  	
  Name:

  	
  Stephen C. Mecke

  
	
   

  	
  Title:

  	
  Authorized Officer

  
	
   

  	
   

  	
   

  
	
  AGENT:

  	
  ANGLO IRISH BANK CORPORATION PLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Patraic Murray

  
	
   

  	
  Name:

  	
  Patraic Murray

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marcus Ryan

  
	
   

  	
  Name:

  	
  Marcus Ryan

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER:

  	
  ANGLO IRISH BANK CORPORATION PLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Patraic Murray

  
	
   

  	
  Name:

  	
  Patraic Murray

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marcus Ryan

  
	
   

  	
  Name:

  	
  Marcus Ryan

  
	
   

  	
  Title:

  	
  Associate Director

  

 

51

 

EXHIBITS:

 

	
   

  	
   

  	
   

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  	
   

  	
  Reference

  
	
   

  	
   

  	
   

  	
   

  	
  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Definitions

  	
   

  	
  1.1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Ownership Interests and Taxpayer Identification Numbers

  	
   

  	
  8.10.2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Authorized Representatives

  	
   

  	
  4 and 15.9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Required Hazard Property and Other Insurance

  	
   

  	
  7.13 and 9.5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Assignment and Acceptance

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Lenders’ Commitment

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Note

  	
   

  	
   

  

 

52

 

EXHIBIT A TO LOAN
AGREEMENT

 

DEFINITIONS

 

Agent shall mean
Anglo Irish Bank Corporation plc, acting as agent for the Lenders.

 

Agreement as defined in
the Preamble.

 

Approved Lease as defined in Section 9.17.2.

 

Authorized Representatives as defined in Section 4.
and listed on Exhibit C.

 

Banking Day.  The term “Banking Day” means a day on which
banks are not required or authorized by law to close in Boston, Massachusetts.

 

Borrower as defined in
the Preamble.

 

Bridge Loan Agreement shall mean
that certain Bridge Loan Agreement dated as of the date hereof by and among
Borrower, Agent and Lenders for loans in the maximum aggregate principal amount
of $60,000,000.00.

 

Bridge Loan Default shall mean
a  Default under any of the “Loan
Documents” as defined in the Bridge Loan Agreement.

 

Bridge Loans shall mean the
loans made by Lenders to Borrower under the Bridge Loan Agreement.

 

Business Day shall mean:
any Banking Day and any other day of the year on which offices of the Agent are
not required or authorized by law to be closed for business in Boston, Massachusetts.  If any day on which a payment is due is not a
Business Day, then the payment shall be due on the next day following which is
a Business Day.  Further, if there is no
corresponding day for a payment in the given calendar month (i.e., there is no “February 30th”),
the payment shall be due on the last Business Day of the calendar month.

 

Calculation Date as defined in Section 9.19.1(i).

 

Calculation Period as defined in Section 9.19.1(ii).

 

Casualty as defined in Section 14.1

 

Collateral as defined in Section 7.5.

 

Commitment.  With respect to each Lender, the amount set
forth on Exhibit F hereto as the amount of such Lender’s commitment
to make advances to the Borrower, as may be amended from time to time by the
Agent as provided in Section 15.

 

Commitment Percentage.  With respect to each Lender, the percentage
set forth on Exhibit F hereto as such Lender’s percentage of the
aggregate Commitments of all of the Lenders, as may be amended from time to
time by the Agent as provided in Section 15.

 

Consultant as defined in Section 5.1.

 

Cost To Repair as defined in Section 14.3.

 

53

 

Debt Service Coverage as defined in Section 9.19.1(iii).

 

Debt Service on the Loan as defined in Section 9.19.1(vi).

 

Deemed Rate of Interest as defined in Section 9.19.1(vii).

 

Default as defined in Section 11.1.

 

Delinquent Lender as defined in Section 15.13.

 

Depository
Bank as defined in Section 9.12.

 

Depository
Bank Letter Agreement as defined in Section 9.12.

 

Dollars shall mean
lawful money of the United States.

 

Eligible Assignee.  Any of (a) a commercial bank organized
under the laws of the United States, or any State thereof or the District of
Columbia, and having total assets in excess of $1,000,000,000; (b) a
savings and loan association or savings bank organized under the laws of the
United States, or any State thereof or the District of Columbia, and having a
net worth of at least $100,000,000, calculated in accordance with generally
accepted accounting principles; (c) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic
Cooperation and Development (the “OECD”), or a political subdivision of any
such country, and having total assets in excess of $1,000,000,000, provided
that such bank is acting through a branch or agency located in the country in
which it is organized or another country which is also a member of the OECD;
and (d) the central bank of any country which is a member of the OECD.

 

Environmental Indemnity as defined in Section 3.1.5.

 

Environmental Legal
Requirements as defined in the Environmental Indemnity.

 

ERISA and ERISA
Plan each as defined in Section 8.12.

 

Event of Default as defined in Section 11.1.

 

Extended
Maturity Date as defined in
Sections 2.2 and 2.6.

 

Extended
Term as defined in Section 2.2.

 

Future Commitment as defined in Section 15.13.

 

Guaranty as defined in Section 3.1.4.

 

Guarantor as defined in Section 1.5.

 

Hazardous Materials shall mean and
include asbestos, flammable materials, explosives, radioactive substances,
polychlorinated biphenyls, radioactive substances, other carcinogens, oil and
other petroleum products, pollutants or contaminants that could be a detriment
to the environment, and any other hazardous or toxic materials, wastes, or substances
which are defined, determined or identified as such in any past, present or
future federal, state or local laws, rules, codes or regulations, or any
judicial or administrative interpretation of such laws, rules, codes or
regulations.

 

54

 

Improvements as defined in Section 1.3.

 

Indemnified Party as defined in Section 9.16.

 

Indemnitors as defined in Section 3.1.5.

 

Initial Term as defined in Section 2.2.

 

Investment shall mean the
acquisition of any real or tangible personal property or of any stock or other
security, any loan, advance, bank deposit, money market fund, contribution to
capital, extension of credit (except for accounts receivable arising in the
ordinary course of business and payable in accordance with customary terms) ,
or purchase or commitment or option to purchase or otherwise acquire real
estate or tangible personal property or stock or other securities of any party
or any part of the business or assets comprising such business, or any part
thereof.

 

Kendallville Improvements as defined in Section 1.3.2.

 

Kendallville Land as defined in Section 1.3.2.

 

Kendallville Property as defined in Section 1.3.2.

 

Land as defined in Section 1.3.

 

Legal Requirements shall mean all
applicable federal, state, county and local laws, by-laws, rules, regulations,
codes and ordinances, and the requirements of any governmental agency or
authority having or claiming jurisdiction with respect thereto, including, but
not limited to, those applicable to zoning, subdivision, building, health,
fire, safety, sanitation, the protection of the handicapped, and environmental
matters and shall also include all orders and directives of any court,
governmental agency or authority having or claiming jurisdiction with respect
thereto.

 

Lenders as defined in
the Preamble.

 

Lenders’ Consultants as defined in Section 5.1.

 

Licenses and Permits shall mean all
licenses, permits, authorizations and agreements issued by or agreed to by any
governmental authority, or by a private party pursuant to a Permitted Title
Exception, and including, but not limited to, building permits, occupancy
permits and such special permits, variances and other relief as may be required
pursuant to Legal Requirements which may be applicable to the Property or the
Property.

 

Liquidation Proceeds.  Amounts received by the Agent and/or the
Lenders in the exercise of the rights and remedies under the Loan Documents
(including, but not limited to, all rents, profits and other proceeds received
by the Agent and/or the Lenders from the operation of the Property or the
liquidation of any Collateral, but not including any amount bid at a
foreclosure sale by or on behalf of the Agent or otherwise credited to the
Borrower in, any deed-in-lieu of foreclosure or similar transaction).

 

Loan and Loans
as defined in Section 1.4.

 

Loan Agreement as defined in
the Preamble.

 

Loan Documents as defined in Section 3.2.

 

Loan Amount as defined in Section 2.1.

 

55

 

Loan To Value Ratio or LTV
Ratio as defined in Section 9.18.1.

 

MAI shall mean
Member of the Appraisers Institute.

 

Major Lease shall mean a
lease(s) for a Property (or a portion thereof) with each Major Tenant.

 

Major Tenant shall mean
each tenant in a Property.

 

Majority
Lenders.  As
of any date, the Lenders holding at least Sixty-six and two thirds
(66 2/3%) of the outstanding principal amount of the Note on such date;
and if no such principal is outstanding, the Lenders whose aggregate
Commitments constitute at least Sixty-six and two thirds percent (66 2/3%)
of the Total Commitment.

 

Make Whole Provision.  As defined in the Note.

 

Maturity shall mean the
Maturity Date, or, if the Maturity Date has been extended pursuant to the
provisions of the Loan Agreement, the Extended Maturity Date, or in any
instance, upon acceleration of the Loan, if the Loan has been accelerated by
Agent upon an Event of Default.

 

Maturity Date as defined in Section 2.2.

 

Milwaukee Improvements as defined in Section 1.3.1.

 

Milwaukee Land as defined in Section 1.3.1.

 

Milwaukee Property as defined in Section 1.3.1.

 

Mortgage as defined in Section 3.1.1.

 

NED Investors as defined in Section 9.6.8.

 

Net Operating Income as defined in Section 9.19.1(iv).

 

Note.  Collectively, the Note(s) payable to
each of the Lenders in the aggregate principal amount of THREE HUNDRED MILLION
DOLLARS ($300,000,000.00), as same may be hereafter amended and/or restated.

 

Obligations as defined in Section 3.1

 

Operating Expenses as defined in Section 9.19.1(v).

 

Original Appraisal as defined in Section 9.18.1.

 

Permitted Additional Debt as defined in Section 9.6.4.

 

Permitted Distributions as defined in Section 9.7.2.

 

Permitted Title Exceptions as defined in Exhibit B
to the Mortgage.

 

Permitted Transactions as defined in Section 9.6.2.

 

Permitted Transfers as defined in Section 9.6.3.

 

Property as defined in Section 1.3.

 

56

 

Property
Costs shall mean all amounts paid or payable in
connection with owning, developing, leasing, operating, maintaining, repairing,
restoring, and managing a Property including, without limitation, all other
costs of construction, tenant inducements, leasing commissions, advertising,
interest, taxes, insurance, fees for architects, engineers, lawyers,
accountants and consultants, carrying costs, loan fees and other expenses of
owning, developing and operating a Property (other than the balance of
principal on the Loan due at Maturity).

 

Register as defined in Section 15.15.3.

 

Repair
Work as defined in Section 14.1.

 

Reportable
Event as defined in Section 8.12.

 

Required
Equity Contribution as defined in Section 6.2.

 

Registered
Land Surveyor shall mean a land
surveyor or engineer licensed as such in the jurisdiction where the Property is
situated.

 

SAgE as defined in Section 1.2.

 

Security as defined in Section 3.1.

 

Security
Documents as defined in Section 3.2.

 

SNDA
Agreement as defined in Section 9.17.4.

 

Statement as defined in Section 15.17.

 

STAG
III as defined in Section 1.2.

 

Surveyor and Survey Plan each as defined in Section 1.3.

 

Total Commitment.  The sum of the Commitments of the Lenders, as
in effect from time to time.

 

UCC means the
Uniform Commercial Code in effect in the Commonwealth of Massachusetts and the
jurisdiction where the Property is situated.

 

Updated Appraisal as defined in Section 9.18.2.

 

Variable Rate.  As defined in the Note.

 

Yield Maintenance Prepayment
Fee.   As defined in the Note.

 

57

 

EXHIBIT B TO LOAN
AGREEMENT

 

OWNERSHIP INTERESTS AND

TAXPAYER IDENTIFICATION
NUMBERS

 

58

 

EXHIBIT C TO LOAN
AGREEMENT

 

AUTHORIZED REPRESENTATIVES

 

Benjamin S. Butcher

 

59

 

EXHIBIT D TO LOAN
AGREEMENT

 

REQUIRED PROPERTY, HAZARD
AND OTHER INSURANCE

 

Borrower shall at all times provide and maintain the
following insurance coverages with respect to each Property and the Collateral
issued by companies qualified to do business in the jurisdiction where the applicable Property is located, having a
Best’s Rating of not less than A-VIII and otherwise acceptable to Agent in its
sole discretion:

 

(i)                                                     physical
insurance on an all-risk basis without exception (including, without limitation,
flood required if property is in a “Special Flood Hazard Area” A or V),
vandalism and malicious mischief, earthquake, collapse, boiler explosion,
sprinkler coverage, cost of demolition, increased costs of construction and the
value of the undamaged portion of the building and soft costs coverage)
covering all the real estate, fixtures and personal property to the extent of
the full insurable value thereof, on a builder’s risk nonreporting form prior
to completion and occupancy to Occupy Endorsement, having replacement cost and
agreed amount endorsements (with deductibles not in excess of 1% of insurable
value);

 

(ii)                                                  rent loss or
business interruption insurance in an amount equal to one year’s projected
rentals or gross revenues;

 

(iii)                                               public
liability insurance, with underlying and umbrella coverages totaling not less
than $1,000,000.00 per occurrence and $5,000,000.00 in the aggregate or such
other amounts as may be determined by Agent from time to time;

 

(iv)                                              automobile
liability insurance (including nonowned automobile) with a coverage of
$1,000,000 per occurrence during construction;

 

(v)                                                 worker’s
compensation, employer’s liability and other insurance required by law;

 

(vi)                                              errors and
omissions or similar coverages from the Architect and consulting engineers in
limits and written by companies satisfactory to Agent; and

 

(vii)                                           such other
insurance coverages in such amounts as Agent may request consistent with the
customary practices of prudent developers and owners of similar properties.

 

An actual insurance policy or certified copy thereof, or a binder,
certificate of insurance, or other evidence of property coverage in the form of
Acord 27 (Evidence of Property Coverage), Acord 25 (Certificate of Insurance),
or a 30-day binder in form acceptable to Agent with an unconditional
undertaking to deliver the policy or a certified copy within thirty (30) days,
shall be delivered at closing of the Loan and prior to the first Loan.

 

Flood insurance shall be provided if the property or
the collateral is located in a flood prone, flood risk or flood hazard area as
designated pursuant to the Federal Flood Disaster Protection Act of 1973, as
amended, and the Regulations thereunder, or if otherwise reasonably 

 

60

 

required by Agent.

 

Agent, on behalf of the Lenders, shall be named as
first mortgagee on policies of all risk-type insurance on the Property, as loss
payee on the Collateral and its contents, and as first mortgagee on rent-loss
or business interruption coverages related thereto.

 

Except with respect to public liability insurance,
as to which Agent, on behalf of the Lenders, shall be named as an additional
insured with respect to the Property or the Collateral, all other required
insurance coverages shall have a so-called “Mortgagee’s endorsement” or “Agent’s
loss-payable endorsement” which shall provide in substance as follows:

 

A.                                                             Loss or damage,
if any, under the policy shall be paid to Agent and its successors and assigns
(“Agent”) in whatever form or capacity its interest may appear and whether said
interest be vested in said Agent in its individual or in its disclosed or
undisclosed fiduciary or representative capacity, or otherwise, or vested in a
nominee or trustee of said Agent.

 

B.                                                             The insurance
under the policy, or under any rider or endorsement attached thereto, as to the
interest only of Agent, its successors and assigns, shall not be invalidated
nor suspended:

 

(a)      by any error,
omission or change respecting the ownership, description, possession or location
of the subject of the insurance or the interests therein or the title thereto;
or

 

(b)      by the
commencement of foreclosure or similar proceedings or the giving of notice of
sale of any of the property covered by the policy by virtue of any mortgage,
deed of trust, or security interest; or

 

(c)       by any breach
of warranty, act, omission, neglect, or noncompliance with any provisions of
the policy by the named insured, or any one else, whether before or after a
loss, which under the provisions of the policy of insurance, would invalidate
or suspend the insurance as to the named insured, excluding, however, any acts
or omissions of Agent while exercising active control and management of the
insured property.

 

C.                                                             Insurer shall
provide Agent and each of the Lenders with not less than thirty (30) days,
prior written notice of cancellation of the policy (for non-payment or any
other reason) or of the non-renewal thereof.

 

D.                                                             The insurer
reserves the right to cancel the policy at any time, but only as provided by
its terms.  However, in such case this
policy shall continue in force for the benefit of Agent for thirty (30) days
after written notice of such cancellation is received by Agent and shall then
cease.

 

E.                                                              Should legal
title to and beneficial ownership of any of the property covered under the
policy become vested in Agent or its agents, successors or assigns, insurance
under the policy shall continue for the term thereof for the benefit of Agent.

 

61

 

F.                                                               All notices
herein provided to be given by the insurer to Agent in connection with this
policy and Agent’s loss payable endorsement shall be mailed to or delivered to
Agent by certified or registered mail, return receipt requested, as follows:

 

Anglo Irish Bank Corporation
plc, as Agent

265 Franklin Street

Boston, MA  02110

 

62

 

EXHIBIT E TO LOAN AGREEMENT

 

FORM OF ASSIGNMENT AND ACCEPTANCE

 

Dated: as of                          

 

Reference is made to the Loan Agreement dated as of August 11,
2006 (the “Loan Agreement”), among STAG III ALBION, LLC and other affiliates
which may be joined to the Loan Agreement (“Borrower”) and ANGLO IRISH BANK
CORPORATION PLC, as Administrative Agent and the Lenders identified therein.  Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Loan
Agreement.

 

                                                                      (the
“Assignor”) and
                                    
(the “Assignee”) agree as follows:

 

1.                                      The Assignor
hereby sells and assigns to the Assignee, and the Assignee hereby purchases and
assumes from the Assignor, a
                            
(        %) interest in and to all of
the Assignor’s rights and obligations under the Loan Documents as of the
Effective Date (as hereinafter defined). 
The amount of the Assignor’s Commitment being purchased by and assigned
to the Assignee as of the Effective Date is
$                            .

 

2.                                      The Assignor (i) represents
that as of the date hereof, its Commitment Percentage (without giving effect to
assignments thereof which have not yet become effective) is
                
and the outstanding balance of the Loan owing to the Assignor under the Note
held by the Assignor (unreduced by any assignments thereof which have not yet
become effective) is
$                    ;
(ii) makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in
connection with the Loan Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
other instrument or document furnished pursuant thereto, other than that the
Assignor is the legal and beneficial owner of the interest being assigned by it
hereunder, that such interest is free and clear of any adverse claim, that it
is legally authorized to enter into this Assignment and Acceptance, and it has
no knowledge of the occurrence of an Event of Default under the Loan Agreement;
(iii) makes no representation or warranty and assumes no responsibility
with respect to the financial condition of the Borrower, Guarantor, or any
other person which may be primarily or secondarily liable in respect of any of
the Obligations or any of their obligations, or the performance or observance
by the Borrower, Guarantor, or any other person primarily or secondarily liable
in respect of any of the obligations under any of the Loan Documents or any
other instrument or document delivered or executed 

 

63

 

pursuant thereto; and (iv) requests that the Administrative Agent
reflect on the Register maintained by the Administrative Agent the assignment
to the Assignee of that portion of the Assignor’s Commitment as set forth
herein.

 

3.                                      The Assignee (i) represents
and warrants that it is legally authorized to enter into this Assignment and
Acceptance; (ii) confirms that it has received a copy of the Loan
Documents, together with copies of the most recent financial statements of the
Borrower and the Guarantor delivered pursuant to the Loan Agreement and such
other documents and information as the Assignee has deemed appropriate to make
its own credit analysis and decision to enter into this Assignment and
Acceptance; (iii) agrees that it will, independently and without reliance
upon the Assignor or any Lender and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents; (iv) confirms
that it is an Eligible Assignee; (v) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers as are expressly delegated to or conferred upon the Administrative
Agent as agent by the terms of the Loan Documents together with such other
powers as are reasonably incidental thereto; (vi) agrees that it will
perform all the obligations which by the terms of the Loan Documents are
required to be performed by the Assignee as a Lender in accordance with the
terms of the Loan Documents; and (vii) specifies as to its address for
notices the office set forth beneath its name on the signature page hereof.

 

4.                                      The effective
date for this Assignment and Acceptance shall be
                                  ,
                  
(the “Effective Date”).  Following the
execution of this Assignment and Acceptance, it will be delivered to the
Administrative Agent for acceptance and recording in the Register by the
Administrative Agent.

 

5.                                      Upon such
acceptance and recording, from and after the Effective Date, (i) the
Assignee shall be a party to the Loan Agreement and, to the extent provided in
this Assignment and Acceptance, have the rights and obligations of a Lender
thereunder, and (ii) the Assignor shall, with respect to that portion of
its interest under the Loan Documents assigned hereunder relinquish its future
rights and be released from its future obligations under the Loan Documents but
shall remain liable for all obligations which arose prior to such assignment.

 

6.                                      Upon such
acceptance and recording, from and after the Effective Date, the Administrative
Agent shall make all payments in respect of the rights and obligations assigned
hereby (including payments of principal, interest, fees and other amounts) to
the Assignee.  The Assignor and Assignee
shall make all appropriate adjustments in payments for periods prior to the
Effective Date by the Administrative Agent or with respect to the making of
this assignment directly between themselves.

 

7.                                      THIS ASSIGNMENT
AND ACCEPTANCE IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT TO BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF
MASSACHUSETTS.

 

64

 

IN WITNESS WHEREOF, intending to be legally bound,
each of the undersigned has caused this Assignment and Acceptance to be
executed on its behalf by its officer thereunto duly authorized, as of the date
first above written.

 

	
   

  	
   

  
	
   

  	
  “Assignor”

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “Assignee”

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Notice Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Telephone
  No.:

  
	
   

  	
  Telecopier
  No.:

  
				

 

65

 

EXHIBIT F TO LOAN AGREEMENT

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Commitment

  Percentage

  	
   

  
	
  Anglo Irish Bank
  Corporation plc

  	
   

  	
  $

  	
  300,000,000.00

  	
   

  	
  100

  	
  %

  
							

 

66

 

EXHIBIT G TO LOAN AGREEMENT

 

(Form of Note)

 

67

 

JOINDER TO LOAN AGREEMENT,

 

MODIFICATION TO SENIOR LOAN AGREEMENT, and

 

THIRD MODIFICATION TO BRIDGE LOAN AGREEMENT

 

This
Joinder to Loan Agreement, Modification Senior Loan Agreement and Third
Modification to Bridge Loan Agreement (this “Joinder”) is made this 20th day of December, 2007, by
and among:

 

(i) STAG III DANVILLE, LLC, a Delaware limited liability company
(hereinafter, “New Borrower”); (ii) STAG III ALBION, LLC, STAG III
MASON, LLC, STAG III ST. LOUIS, LLC, STAG III POMFRET, LLC, STAG III TAVARES,
LLC, STAG III STREAMWOOD, LLC, STAG III DAYTONA BEACH, LLC, STAG III MALDEN,
LLC,  STAG III GREAT BEND, LLC, STAG III
MILWAUKEE, LLC, STAG III YOUNGSTOWN, LLC, STAG III ROUND ROCK, L.P., STAG III
CHESTERFIELD, LLC, STAG III ARLINGTON, L.P., STAG III FARMINGTON, LLC, STAG III
CINCINNATI, LLC, STAG III APPLETON, LLC, STAG III JEFFERSON, LLC, STAG III
ELKHART, LLC, STAG III HOLLAND 2, LLC, STAG III FAIRFIELD, LLC, STAG III
MAYVILLE, LLC, STAG III MILWAUKEE 2, LLC, STAG III JACKSON, LLC, STAG III
MARYLAND BORROWER, LLC, STAG III POCATELLO, LLC, STAG III CANTON, LLC, STAG III
RAPID CITY, LLC, STAG III AMESBURY, LLC, STAG III HOLLAND, LLC, STAG III
SERGEANT BLUFF, LLC, STAG III LEWISTON, LLC, STAG III PENSACOLA, LLC, STAG III
BOARDMAN, LLC, STAG III NEWARK, LLC, STAG III TWINSBURG, LLC, and STAG III
DAYTON, LLC all Delaware limited liability companies or Delaware limited
partnerships (collectively referred to as the “Existing Borrower”, and,
together with New Borrower, collectively, “Borrower”), all having principal
executive offices at c/o STAG Capital Partners, 99 Chauncy Street, 10th Floor, Boston, Massachusetts 02111 and

 

(iii) ANGLO IRISH BANK CORPORATION PLC, with offices at 265
Franklin Street, 19th Floor, Boston, Massachusetts 02110, as agent (in such capacity,
the “Agent”) for its own benefit and the benefit of the other lenders;

 

in
consideration of the mutual covenants herein contained and benefits to be
derived herefrom.

 

W I T N E S S E T H :

 

A.            Reference is made to a certain Loan
Agreement dated as of August 11, 2006 (as amended, modified, supplemented
or restated and in effect from time to time, the “Senior Loan Agreement”)
and a certain Bridge Loan Agreement dated as of August 11, 2006 (as
amended, modified, supplemented or restated and in effect from time to time,
the “Bridge Loan Agreement”), by and among (i) Existing Borrower, (ii) the
Agent, and (iii) the Lenders party thereto (the “Lenders”).  All capitalized terms used herein, and not
otherwise defined herein, shall have the meanings assigned to such terms in the
Senior Loan Agreement and the Bridge Loan Agreement.

 

1

 

B.            The New Borrower desires to become a
party to, and to be bound by the terms of, the Senior Loan Agreement and the
Bridge Loan Agreement and the other Loan Documents in the same capacity and to
the same extent as the Existing Borrower thereunder.

 

C.            Pursuant to the terms of the Senior
Loan Agreement and the Bridge Loan Agreement, in order for the New Borrower to
become party to the Senior Loan Agreement and the Bridge Loan Agreement and the
other Loan Documents as provided herein, the New Borrower and the Existing
Borrower are required to execute this Joinder.

 

D.            Borrower has requested that Lender
permit a Mezzanine Loan (as defined below) by NED SAgE IV LLC, a Delaware
limited liability company (“NED”) to STAG Investments Holdings III, LLC
(“Holdings”) in the amount of $20,000,000.00 and, in furtherance
thereof, to make certain modifications, among other items, to the constituent
ownership structure of New Borrower and additional Borrowers hereafter joined
to the Senior and Bridge Loans.  Lender
has agreed to the foregoing, subject to the agreements, terms and conditions
set forth in this Joinder.

 

E.             The term “Mezzanine Loan” as
used herein shall mean the loan or loans evidenced by that certain Mezzanine
Loan Agreement dated as of December 18, 2007 by and between NED and
Holdings (the “Mezzanine Loan Agreement”) as evidenced by a Promissory
Note in the amount of $20,000,000.00 (the “Mezzanine Note”) of Holdings
in favor of NED and secured by a Pledge and Security Agreement (the “Pledge”)
by Holdings in favor of NED of its interests in SAgE IV Aggregation, LLC, a
Delaware limited liability company (“SAgE IV”).  The term “Mezzanine Loan Documents”
shall mean the Mezzanine Loan Agreement, Mezzanine Note and the Pledge.

 

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

 

1.                                       Joinder and
Assumption of Obligations. 
Effective as of the date of this Joinder, the New Borrower hereby
acknowledges that the New Borrower has received and reviewed a copy of the
Senior Loan Agreement and the Bridge Loan Agreement, and acknowledges and
agrees to:

 

(a)                                  join in the
execution of, and become a party to, the Senior Loan Agreement and the Bridge
Loan Agreement as a Borrower thereunder, as indicated with its signature below;

 

(b)                                 be bound by all
representations, warranties, covenants, agreements, liabilities and
acknowledgments of the Existing Borrower under the Senior Loan Agreement and
the Bridge Loan Agreement and the other Loan Documents, in each case, with the
same force and effect as if such New Borrower was a signatory to the Senior
Loan Agreement and the Bridge Loan Agreement and the other Loan Documents and
was expressly named as a Borrower therein; and

 

(c)                                  assume all
rights and interests and perform all applicable duties and Obligations of the
Existing Borrower under the Senior Loan Agreement and the Bridge Loan Agreement
and the other Loan Documents.

 

2

 

2.                                       Representations,
Warranties and Covenants.  The
New Borrower hereby makes all representations, warranties, and covenants set
forth in the Senior Loan Agreement and the Bridge Loan Agreement as of the date
hereof (other than representations, warranties and covenants that relate solely
to an earlier date).  To the extent that
any changes in any representations, warranties, and covenants require any
amendments to the schedules to the Senior Loan Agreement or the Bridge Loan
Agreement, such schedules are hereby updated, as evidenced by any supplemental
schedules (if any) annexed to this Joinder.

 

3.                                       Danville,
Kentucky Property.  New
Borrower will be utilizing loan proceeds advanced under the Senior Loan
Agreement and the Bridge Loan Agreement to acquire a parcel of land (the “Danville
Land”) located at 1355 Lebanon Road, Danville, Boyle County, Kentucky, more
particularly described in the Mortgage to be granted by New Borrower.  The Danville Land is presently improved by a
manufacturing, warehouse, and light assembly facility containing an aggregate
of approximately 766,185 square feet, with related parking and improvements
(the “Danville Improvements”).  The
Danville Land and the Danville Improvements are collectively called the “Danville
Property”, with the Danville Land being “Land” under the Senior Loan Agreement
and the Bridge Loan Agreement, the Danville Improvements being “Improvements”
under the Senior Loan Agreement and the Bridge Loan Agreement, and the Danville
Property being a “Property” under the Senior Loan Agreement and the Bridge Loan
Agreement.

 

4.                                       LaGrange,
Georgia Property  New Borrower
will be utilizing loan proceeds advanced under the Senior Loan Agreement and
the Bridge Loan Agreement to acquire a parcel of land (the “LaGrange Land”)
located at 1707 Shorewood Drive, LaGrange, Troup County, Georgia, more
particularly described in the Mortgage to be granted by New Borrower.  The LaGrange Land is presently improved by a
manufacturing facility containing an aggregate of approximately 239,537 square
feet, with related parking and improvements (the “LaGrange Improvements”).  The LaGrange Land and the LaGrange
Improvements are collectively called the “LaGrange Property”, with the LaGrange
Land being “Land” under the Senior Loan Agreement and the Bridge Loan
Agreement, the LaGrange Improvements being “Improvements” under the Senior Loan
Agreement and the Bridge Loan Agreement, and the LaGrange Property being a “Property”
under the Senior Loan Agreement and the Bridge Loan Agreement.

 

5.                                       Required Equity
Contribution.  Sections
6.2 of the Senior Loan Agreement and the Bridge Loan Agreement are hereby
modified to provide that the Borrower’s Required Equity Contribution may be
made by way of proceeds of the Mezzanine Loan.

 

6.                                       Other Liens.  Sections 7.6 of the Senior Loan Agreement and
the Bridge Loan Agreement are hereby deleted and replaced with the
following:  “No Other Liens; Taxes and
Municipal Charges Current.  The
Collateral shall not be subject to any liens or encumbrances, whether inferior
or superior to the Loan Documents or the Security Documents, except in respect
of: (i) real estate taxes and personal property taxes not yet due and
payable; (ii) Permitted Title Exceptions, if any and (iii) the
Pledge.  All real estate taxes, personal
property taxes and other municipal charges relating to any of the Collateral
shall be current.”

 

3

 

7.                                       Ownership of
future Borrowers.  Sections
8.10.2 and Exhibit B of the Senior Loan Agreement and the Bridge Loan
Agreement are hereby modified to provide that SAgE IV is permitted to be an
owner of 100% of the interests in New Borrower and in additional Borrowers
hereafter to be joined to the Loan transaction.

 

8.                                       Permitted
Transfers.  Sections
9.6.3 of the Senior Loan Agreement and the Bridge Loan Agreement are hereby
modified by adding an additional subsection “ix” and “viii” respectively, as
follows:  “an NED Transfer pursuant to
the Mezzanine Loan Documents”.

 

9.                                       Permitted
Additional Debt.  Sections
9.6.4 of the Senior Loan Agreement and the Bridge Loan Agreement are hereby
modified by adding an additional subsection “v” at the end thereof as
follows:  “the Mezzanine Loan.”

 

10.                                 Name Change.  Borrower (including any future Borrowers) is
hereby permitted to change the name of the entities owned by SAgE IV by
deleting in such names the roman numerals “III” and replacing with the roman
numerals “IV”; provided however, that evidence of such name changes be provided
within five (5) days to Agent and subject to such further name change
evidences on other documentation as Agent may require.

 

11.                                 Maturity Date
of Bridge Loan.  From and
after the effective date of this Joinder, it is agreed by and among the Agent,
Lender and Borrower that the Maturity Date of the Bridge Loan as defined in Section 2.2
of the Bridge Loan Agreement is hereby March 31, 2008, and wherever stated
in the Loan Documents, the Maturity Date of the Bridge Loan is March 31,
2008.

 

12.                                 Ratification of
Loan Documents.  Except as
specifically amended by this Joinder and the other documents executed and
delivered in connection herewith, all of the terms and conditions of the Senior
Loan Agreement and the Bridge Loan Agreement and of the other Loan Documents
shall remain in full force and effect as in effect prior to the date hereof, without
releasing any obligors thereon or collateral security therefor.

 

13.                                 Conditions
Precedent to Effectiveness.  This Joinder shall not be effective until
each of the following conditions precedent have been fulfilled to the
reasonable satisfaction of the Agent:

 

(a)                                  This Joinder
shall have been duly executed and delivered by the respective parties hereto,
and shall be in full force and effect and in form and substance reasonably
satisfactory to the Agent.

 

(b)                                 All action on
the part of the Borrower and each other party necessary for the valid
execution, delivery and performance by the Borrower of this Joinder and all
other documentation, instruments, and agreements to be executed in connection
herewith shall have been duly and effectively taken and evidence thereof
reasonably satisfactory to the Agent shall have been provided to the Agent.

 

4

 

(c)                                  All due
diligence items required under the Senior Loan Agreement and the Bridge Loan
Agreement with respect to the New Property have been delivered to the Agent.

 

(d)                                 The Borrower
shall have delivered the following to the Agent, in form and substance
reasonably satisfactory to the Agent:

 

(i)                                     A Certificate
of Legal Existence and Good Standing issued by the Secretary of the State of
the incorporation or organization of New Borrower.

 

(ii)                                  A certificate
of an authorized officer relating to the organization and existence of such
party, the authorization of the transactions contemplated by the Loan Documents
and this Joinder, and attesting to the true signatures of each Person authorized
as a signatory to any of the Loan Documents and this Joinder, together with
true and accurate copies of all organizational documents.

 

(iii)                               Execution and
delivery by the New Borrower of the following Loan Documents:

 

a)                                      Joinder to the
Promissory Note;

 

b)                                     The Security
Documents required under Section 3.1 of the Senior Loan Agreement and the
Bridge Loan Agreement;

 

c)                                      Such other
applicable documents and agreements required by the Agent.

 

(e)                                  The Agent shall
have received a written legal opinion of the Borrower’s counsel addressed to
the Agent and the other Lenders, covering such matters relating to the
Borrower, the Loan Documents and/or the transactions contemplated thereby as
the Agent shall reasonably request.

 

(f)                                    All fees and
expenses incurred by the Agent in connection with the preparation and
negotiation of this Joinder and related documents (including the reasonable
fees and expenses of counsel to the Agent) shall have been paid in full.

 

(g)                                 No Default or
Event of Default shall have occurred and be continuing.

 

(h)                                 The Borrower
shall have executed and delivered to the Agent such additional documents,
instruments, and agreements as the Agent may reasonably request.

 

(i)                                     The Borrower
shall have paid a Bridge Loan Extension fee of $65,000.00 to Lender.

 

5

 

14.                                 Miscellaneous.

 

(a)                                  This Joinder
may be executed in several counterparts and by each party on a separate
counterpart, each of which when so executed and delivered shall be an original,
and all of which together shall constitute one instrument.

 

(b)                                 This Joinder
expresses the entire understanding of the parties with respect to the
transactions contemplated hereby.  No
prior negotiations or discussions shall limit, modify, or otherwise affect the
provisions hereof.

 

(c)                                  Any
determination that any provision of this Joinder or any application hereof is
invalid, illegal or unenforceable in any respect and in any instance shall not
affect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions
of this Joinder.

 

(d)                                 The Borrower
shall pay all fees and expenses of the Agent, including, without limitation,
reasonable attorneys’ fees in connection with the preparation, negotiation,
execution and delivery of this Joinder in accordance with the terms of the
Senior Loan Agreement and the Bridge Loan Agreement.

 

(e)                                  The New
Borrower warrants and represents that the New Borrower has consulted with
independent legal counsel of its selection in connection with this Joinder and
is not relying on any representations or warranties of the Agent or the Lenders
or their counsel in entering into this Joinder.

 

(f)                                    THIS JOINDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PRINCIPLES THEREOF.

 

[Remainder of page intentionally
blank]

 

6

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Joinder to be duly
executed and delivered by its proper and duly authorized officer as of the date
set forth above.

 

	
   

  	
  NEW
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  STAG
  III DANVILLE, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  AGENT
  AND LENDER:

  
	
   

  	
   

  
	
   

  	
  ANGLO IRISH BANK
  CORPORATION PLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Matt Moran

  
	
   

  	
  Name:

  	
  Matt
  Moran

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Willie McAteer

  
	
   

  	
  Name:

  	
  Willie
  McAteer

  
	
   

  	
  Title:

  	
  Director

  

 

7

 

Acknowledged
and Agreed:

 

EXISTING
BORROWERS:

 

	
  STAG III ALBION, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III MASON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III ST. LOUIS, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III POMFRET, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III TAVARES, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III STREAMWOOD, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

8

 

	
  STAG III DAYTONA BEACH, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III MALDEN, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III GREAT BEND, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III MILWAUKEE, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III YOUNGSTOWN, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III ROUND ROCK, L.P.

  	
   

  
	
   

  	
   

  
	
  By:
  STAG Investments GP III, LLC, its sole general partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

9

 

	
  STAG III CHESTERFIELD, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III ARLINGTON, L.P.

  	
   

  
	
   

  	
   

  
	
  By: STAG Investments GP
  III, LLC, its sole general partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III FARMINGTON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III CINCINNATI, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III APPLETON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III JEFFERSON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

10

 

	
  STAG III ELKHART, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III HOLLAND 2, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III FAIRFIELD, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III MAYVILLE, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III MILWAUKEE 2, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III JACKSON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

11

 

	
  STAG III MARYLAND BORROWER, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III POCATELLO, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III CANTON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III RAPID CITY, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III AMESBURY, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III HOLLAND, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

12

 

	
  STAG III SERGEANT BLUFF,
  LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III LEWISTON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III PENSACOLA, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III BOARDMAN, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG III NEWARK, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG
  III TWINSBURG, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG
  III DAYTON, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  
	
  Title:

  	
  Authorized Officer

  	
   

  

 

13

 

Consented
to and Agreed:

 

GUARANTOR:

 

STAG INVESTMENTS HOLDINGS III, LLC

 

	
  BY:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

14

 

JOINDER TO LOAN AGREEMENT,

 

SECOND MODIFICATION TO SENIOR LOAN AGREEMENT, and

 

FOURTH MODIFICATION TO BRIDGE LOAN AGREEMENT

 

This
Joinder to Loan Agreement, Second Modification to Senior Loan Agreement and
Fourth Modification to Bridge Loan Agreement (this “Joinder”) is made
this 12th day of February, 2008, by and among:

 

STAG IV LEXINGTON, LLC, a Delaware limited liability company
(hereinafter, “New Borrower”), with its principal executive offices at
c/o STAG Capital Partners, 99 Chauncy Street, 10th Floor,
Boston, Massachusetts 02111, Existing Borrower (as defined in Recital A below
and, together with New Borrower, hereinafter collectively the “Borrower”);
and

 

ANGLO IRISH BANK CORPORATION PLC, with offices at 265 Franklin Street,
19th Floor, Boston, Massachusetts 02110, as agent (in such capacity, the “Agent”)
for its own benefit and the benefit of the other lenders;

 

in
consideration of the mutual covenants herein contained and benefits to be
derived herefrom.

 

W I T N E S S E T H :

 

A.                                   Reference is
made to a certain Loan Agreement dated as of August 11, 2006 (as amended,
modified, supplemented or restated and in effect from time to time, the “Senior
Loan Agreement”) and a certain Bridge Loan Agreement dated as of August 11,
2006 (as amended, modified, supplemented or restated and in effect from time to
time, the “Bridge Loan Agreement”), by and among (i) STAG III
ALBION, LLC, STAG III MASON, LLC, STAG III ST. LOUIS, LLC, STAG III POMFRET,
LLC, STAG III TAVARES, LLC, STAG III STREAMWOOD, LLC, STAG III DAYTONA BEACH,
LLC, STAG III MALDEN, LLC,  STAG III
GREAT BEND, LLC, STAG III MILWAUKEE, LLC, STAG III YOUNGSTOWN, LLC, STAG III
ROUND ROCK, L.P., STAG III CHESTERFIELD, LLC, STAG III ARLINGTON, L.P., STAG
III FARMINGTON, LLC, STAG III CINCINNATI, LLC, STAG III APPLETON, LLC, STAG III
JEFFERSON, LLC, STAG III ELKHART, LLC, STAG III HOLLAND 2, LLC, STAG III
FAIRFIELD, LLC, STAG III MAYVILLE, LLC, STAG III MILWAUKEE 2, LLC, STAG III
JACKSON, LLC, STAG III MARYLAND BORROWER, LLC, STAG III POCATELLO, LLC, STAG III
CANTON, LLC, STAG III RAPID CITY, LLC, STAG III AMESBURY, LLC, STAG III
HOLLAND, LLC, STAG III SERGEANT BLUFF, LLC, STAG III LEWISTON, LLC, STAG III
PENSACOLA, LLC, STAG III BOARDMAN, LLC, STAG III NEWARK, LLC, STAG III
TWINSBURG, LLC, STAG III DAYTON, LLC, 
STAG III DANVILLE, LLC, STAG III SEVILLE, LLC, STAG III PITTSBURGH, LLC
and STAG IV ALEXANDRIA, LLC all Delaware limited liability companies or
Delaware limited partnerships, all having an address at c/o STAG Capital
Partners, 99 Chauncy Street, 10th Floor,
Boston, Massachusetts 02111, (collectively referred to as the “Existing
Borrower”), (ii) the Agent, and (iii) the Lenders party thereto
(the “Lenders”).  All capitalized
terms used herein, and 

 

1

 

not
otherwise defined herein, shall have the meanings assigned to such terms in the
Senior Loan Agreement and the Bridge Loan Agreement.

 

B.                                     The New
Borrower desires to become a party to, and to be bound by the terms of, the
Senior Loan Agreement and the Bridge Loan Agreement and the other Loan
Documents in the same capacity and to the same extent as the Existing Borrower
thereunder.

 

C.                                     Pursuant to the
terms of the Senior Loan Agreement and the Bridge Loan Agreement, in order for
the New Borrower to become party to the Senior Loan Agreement and the Bridge
Loan Agreement and the other Loan Documents as provided herein, the New
Borrower and the Existing Borrower are required to execute this Joinder.

 

D.                                    Borrower has
requested that Lender permit a Second Mezzanine Loan (as defined below) by NED
SAgE IV LLC, a Delaware limited liability company (“NED”) to STAG
Investments Holdings III, LLC (“Holdings”) in the amount of
$5,000,000.00 and, in furtherance thereof, to make certain modifications, among
other items, to the constituent ownership structure of New Borrower and
additional Borrowers hereafter joined to the Senior and Bridge Loans.  Lender has agreed to the foregoing, subject
to the agreements, terms and conditions set forth in this Joinder.

 

E.                                      The term “Second
Mezzanine Loan” as used herein shall mean the loan or loans evidenced by
that certain Mezzanine Loan Agreement dated as of February 6, 2008 by and
between NED and Holdings (the “Second Mezzanine Loan Agreement”) as
evidenced by a Promissory Note in the amount of $5,000,000.00 (the “Second
Mezzanine Note”) of Holdings in favor of NED and secured by a Pledge and
Security Agreement (the “Second Pledge”) by Holdings in favor of NED of
its interests in STAG IV Holdings, LLC, a Delaware limited liability company (“STAG
IV”).  The term “Second Mezzanine
Loan Documents” shall mean the Second Mezzanine Loan Agreement, Second
Mezzanine Note and the Second Pledge.

 

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

 

1.                                       Joinder and
Assumption of Obligations. 
Effective as of the date of this Joinder, the New Borrower hereby
acknowledges that the New Borrower has received and reviewed a copy of the
Senior Loan Agreement and the Bridge Loan Agreement, and acknowledges and
agrees to:

 

(a)                                  join in the
execution of, and become a party to, the Senior Loan Agreement and the Bridge
Loan Agreement as a Borrower thereunder, as indicated with its signature below;

 

(b)                                 be bound by all
representations, warranties, covenants, agreements, liabilities and
acknowledgments of the Existing Borrower under the Senior Loan Agreement and
the Bridge Loan Agreement and the other Loan Documents, in each case, with the
same force and effect as if such New Borrower was a signatory to the Senior
Loan Agreement and the Bridge Loan Agreement and the other Loan Documents and
was expressly named as a Borrower therein; and

 

2

 

(c)                                  assume all
rights and interests and perform all applicable duties and Obligations of the
Existing Borrower under the Senior Loan Agreement and the Bridge Loan Agreement
and the other Loan Documents.

 

2.                                       Representations,
Warranties and Covenants.  The
New Borrower hereby makes all representations, warranties, and covenants set
forth in the Senior Loan Agreement and the Bridge Loan Agreement as of the date
hereof (other than representations, warranties and covenants that relate solely
to an earlier date).  To the extent that
any changes in any representations, warranties, and covenants require any
amendments to the schedules to the Senior Loan Agreement or the Bridge Loan
Agreement, such schedules are hereby updated, as evidenced by any supplemental
schedules (if any) annexed to this Joinder.

 

3.                                       Lexington,
North Carolina Property.  New
Borrower will be utilizing loan proceeds advanced under the Senior Loan
Agreement and the Bridge Loan Agreement to acquire a parcel of land (the “Lexington
Land”) located at 200 Woodside Drive, Lexington, Davidson County, North
Carolina more particularly described in the Mortgage to be granted by New
Borrower.  The Lexington Land is
presently improved by a warehouse and distribution facilities containing an
aggregate of approximately 201,886 +/- square feet, with related parking and
improvements (the “Lexington Improvements”). 
The Lexington Land and the Lexington Improvements are collectively
called the “Lexington Property”, with the Lexington Land being “Land” under the
Senior Loan Agreement and the Bridge Loan Agreement, the Lexington Improvements
being “Improvements” under the Senior Loan Agreement and the Bridge Loan
Agreement, and the Lexington Property being a “Property” under the Senior Loan
Agreement and the Bridge Loan Agreement.

 

4.                                       Required Equity
Contribution.  Sections
6.2 of the Senior Loan Agreement and the Bridge Loan Agreement are hereby
modified to provide that the Borrower’s Required Equity Contribution may be
made by way of proceeds of the Second Mezzanine Loan.

 

5.                                       Other Liens.  Sections 7.6 of the Senior Loan Agreement and
the Bridge Loan Agreement are hereby deleted and replaced with the
following:  “No Other Liens; Taxes and
Municipal Charges Current.  The
Collateral shall not be subject to any liens or encumbrances, whether inferior
or superior to the Loan Documents or the Security Documents, except in respect
of: (i) real estate taxes and personal property taxes not yet due and
payable; (ii) Permitted Title Exceptions, if any; (iii) the Pledge;
and (iv) the Second Pledge.  All
real estate taxes, personal property taxes and other municipal charges relating
to any of the Collateral shall be current.”

 

6.                                       Ratification of
Loan Documents.  Except as
specifically amended by this Joinder and the other documents executed and
delivered in connection herewith, all of the terms and conditions of the Senior
Loan Agreement and the Bridge Loan Agreement and of the other Loan Documents
shall remain in full force and effect as in effect prior to the date hereof, without
releasing any obligors thereon or collateral security therefor.

 

7.                                       Ownership of
future Borrowers.  Sections
8.10.2 and Exhibit B of the Senior Loan Agreement and the Bridge Loan
Agreement are hereby modified to provide that STAG 

 

3

 

IV Holdings, LLC is
permitted to be an owner of 100% of the interests in New Borrower and in
additional Borrowers hereafter to be joined to the Loan transaction.

 

8.                                       Permitted
Transfers.  Section 9.6.3
(ix) of the Senior Loan Agreement and Section 9.6.3 (viii) of
the Bridge Loan Agreement, respectively are hereby deleted and replaced as
follows: “an NED Transfer pursuant to the Mezzanine Loan Documents and the
Second Mezzanine Loan Documents”.

 

9.                                       Permitted
Additional Debt.  Sections
9.6.4 (v) of the Senior Loan Agreement and the Bridge Loan Agreement are
hereby deleted and replaced as follows:  “the
Mezzanine Loan and the Second Mezzanine Loan.”

 

10.                                 Conditions
Precedent to Effectiveness.  This Joinder shall not be effective until
each of the following conditions precedent have been fulfilled to the
reasonable satisfaction of the Agent:

 

(a)                                  This Joinder
shall have been duly executed and delivered by the respective parties hereto,
and shall be in full force and effect and in form and substance reasonably
satisfactory to the Agent.

 

(b)                                 All action on
the part of the Borrower and each other party necessary for the valid
execution, delivery and performance by the Borrower of this Joinder and all
other documentation, instruments, and agreements to be executed in connection
herewith shall have been duly and effectively taken and evidence thereof
reasonably satisfactory to the Agent shall have been provided to the Agent.

 

(c)                                  All due
diligence items required under the Senior Loan Agreement and the Bridge Loan
Agreement with respect to the New Property have been delivered to the Agent.

 

(d)                                 The Borrower
shall have delivered the following to the Agent, in form and substance
reasonably satisfactory to the Agent:

 

(i)            A Certificate
of Legal Existence and Good Standing issued by the Secretary of the State of
the incorporation or organization of New Borrower.

 

(ii)           A certificate
of an authorized officer relating to the organization and existence of such
party, the authorization of the transactions contemplated by the Loan Documents
and this Joinder, and attesting to the true signatures of each Person
authorized as a signatory to any of the Loan Documents and this Joinder,
together with true and accurate copies of all organizational documents.

 

(iii)          Execution and
delivery by the New Borrower of the following Loan Documents:

 

a)                                      Joinder to the
Promissory Note;

 

4

 

b)                                     The Security
Documents required under Section 3.1 of the Senior Loan Agreement and the
Bridge Loan Agreement;

 

c)                                      Such other
applicable documents and agreements required by the Agent.

 

(e)                                  The Agent shall
have received a written legal opinion of the Borrower’s counsel addressed to
the Agent and the other Lenders, covering such matters relating to the
Borrower, the Loan Documents and/or the transactions contemplated thereby as
the Agent shall reasonably request.

 

(f)                                    All fees and
expenses incurred by the Agent in connection with the preparation and
negotiation of this Joinder and related documents (including the reasonable
fees and expenses of counsel to the Agent) shall have been paid in full.

 

(g)                                 No Default or
Event of Default shall have occurred and be continuing.

 

(h)                                 The Borrower
shall have executed and delivered to the Agent such additional documents,
instruments, and agreements as the Agent may reasonably request.

 

11.                                 Miscellaneous.

 

(a)                                  This Joinder
may be executed in several counterparts and by each party on a separate
counterpart, each of which when so executed and delivered shall be an original,
and all of which together shall constitute one instrument.

 

(b)                                 This Joinder
expresses the entire understanding of the parties with respect to the
transactions contemplated hereby.  No
prior negotiations or discussions shall limit, modify, or otherwise affect the
provisions hereof.

 

(c)                                  Any
determination that any provision of this Joinder or any application hereof is
invalid, illegal or unenforceable in any respect and in any instance shall not
affect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions
of this Joinder.

 

(d)                                 The Borrower
shall pay all fees and expenses of the Agent, including, without limitation,
reasonable attorneys’ fees in connection with the preparation, negotiation,
execution and delivery of this Joinder in accordance with the terms of the
Senior Loan Agreement and the Bridge Loan Agreement.

 

(e)                                  The New
Borrower warrants and represents that the New Borrower has consulted with
independent legal counsel of its selection in connection with this Joinder and
is not relying on any representations or warranties of the Agent or the Lenders
or their counsel in entering into this Joinder.

 

(f)                                    THIS JOINDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF 

 

5

 

MASSACHUSETTS, WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

[Remainder of page intentionally
blank]

 

6

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Joinder to be duly
executed and delivered by its proper and duly authorized officer as of the date
set forth above.

 

	
   

  	
  NEW
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  STAG IV LEXINGTON, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Stephen C. Mecke

  
	
   

  	
  Name: 

  	
  Stephen C. Mecke

  
	
   

  	
  Title: 

  	
  Authorized Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT
  AND LENDER:

  
	
   

  	
   

  
	
   

  	
  ANGLO IRISH BANK
  CORPORATION PLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Nicholas Lyons

  
	
   

  	
  Name:
  

  	
  Nicholas
  Lyons

  
	
   

  	
  Title:
  

  	
  Associate
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Kieran Dowling

  
	
   

  	
  Name:
  

  	
  Kieran
  Dowling

  
	
   

  	
  Title:
  

  	
  Director

  

 

7

 

	
  Acknowledged
  and Agreed:

  	
   

  
	
   

  	
   

  
	
  EXISTING
  BORROWERS:

  	
   

  
	
   

  	
   

  
	
  STAG
  III ALBION, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III MASON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III ST. LOUIS, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III POMFRET, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III TAVARES, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III STREAMWOOD, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  

 

8

 

	
  STAG
  III DAYTONA BEACH, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III MALDEN, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III GREAT BEND, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III MILWAUKEE, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III YOUNGSTOWN, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III ROUND ROCK, L.P.

  	
   

  
	
   

  	
   

  
	
  By:
  STAG Investments GP III, LLC, its sole general partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  

 

9

 

	
  STAG
  III CHESTERFIELD, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III ARLINGTON, L.P.

  	
   

  
	
   

  	
   

  
	
  By: STAG Investments GP III, LLC, its sole general partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III FARMINGTON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III CINCINNATI, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III APPLETON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III JEFFERSON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  

 

10

 

	
  STAG
  III ELKHART, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III HOLLAND 2, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III FAIRFIELD, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III MAYVILLE, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III MILWAUKEE 2, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III JACKSON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG
  III MARYLAND BORROWER, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
  Name:
  

  	
  Stephen
  C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  

 

11

 

	
  STAG III POCATELLO, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG III CANTON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG III RAPID CITY, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG III AMESBURY, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG III HOLLAND, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  STAG III SERGEANT BLUFF, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
  STAG III LEWISTON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
  STAG III PENSACOLA, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  

 

12

 

	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
  STAG III BOARDMAN, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
  STAG III NEWARK, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title:
  

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
  STAG III TWINSBURG, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title: 

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  
	
  STAG III DAYTON, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title: 

  	
  Authorized Officer

  	
   

  

 

13

 

	
  STAG III DANVILLE, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title: 

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  
	
  STAG III SEVILLE, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title: 

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  
	
  STAG III PITTSBURGH, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title: 

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  
	
  STAG IV ALEXANDRIA, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen C. Mecke

  	
   

  
	
  Name: 

  	
  Stephen C. Mecke

  	
   

  
	
  Title: 

  	
  Authorized Officer

  	
   

  

 

14

 

Consented
to and Agreed:

 

	
  GUARANTOR:

  	
   

  
	
   

  	
   

  
	
  STAG INVESTMENTS HOLDINGS III,
  LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:
  

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
   

  	
  Name:
  Stephen C. Mecke

  	
   

  
	
   

  	
  Title:
  Authorized Officer

  	
   

  

 

15

 

THIRD MODIFICATION TO SENIOR LOAN AGREEMENT,

 

EIGHTH MODIFICATION TO BRIDGE LOAN AGREEMENT and

 

AGREEMENT TO RELEASE PROPERTIES

 

This
Third Modification to Senior Loan Agreement, Eighth Modification to Bridge Loan
Agreement and Agreement to Release Properties (this “Agreement”) is made
this 28th day of July, 2008 (the “Effective Date”), by and among STAG
III ALBION, LLC, STAG III MASON, LLC, STAG III ST. LOUIS, LLC, STAG III
POMFRET, LLC, STAG III TAVARES, LLC, STAG III STREAMWOOD, LLC, STAG III DAYTONA
BEACH, LLC, STAG III MALDEN, LLC,  STAG
III GREAT BEND, LLC, STAG III MILWAUKEE, LLC, STAG III YOUNGSTOWN, LLC, STAG
III ROUND ROCK, L.P., STAG III CHESTERFIELD, LLC, STAG III ARLINGTON, L.P.,
STAG III FARMINGTON, LLC, STAG III CINCINNATI, LLC, STAG III APPLETON, LLC,
STAG III JEFFERSON, LLC, STAG III ELKHART, LLC, STAG III HOLLAND 2, LLC, STAG
III FAIRFIELD, LLC, STAG III MAYVILLE, LLC, STAG III MILWAUKEE 2, LLC, STAG III
JACKSON, LLC, STAG III MARYLAND BORROWER, LLC, STAG III POCATELLO, LLC, STAG
III CANTON, LLC, STAG III RAPID CITY, LLC, STAG III AMESBURY, LLC, STAG III
HOLLAND, LLC, STAG III SERGEANT BLUFF, LLC, STAG III LEWISTON, LLC, STAG III
PENSACOLA, LLC, STAG III BOARDMAN, LLC, STAG III NEWARK, LLC, STAG III
TWINSBURG, LLC, STAG III DAYTON, LLC, 
STAG IV DANVILLE, LLC (“Danville Borrower”), STAG IV SEVILLE, LLC
(“Seville Borrower”), STAG IV PITTSBURGH, LLC (“Pittsburgh Borrower”),  STAG IV ALEXANDRIA, LLC (“Alexandria
Borrower”), STAG IV LEXINGTON, LLC (“Lexington Borrower”), STAG IV
PITTSBURGH 2, LLC (“Pittsburgh 2 Borrower”) and STAG IV WACO, L.P. (“Waco
Borrower”) all Delaware limited liability companies or Delaware limited
partnerships (each, a “Borrower” and collectively, the “Borrowers”)
all having principal executive offices at c/o STAG Capital Partners, 99 Chauncy
Street, 10th Floor, Boston, Massachusetts 02111 and ANGLO
IRISH BANK CORPORATION PLC, with offices at 265 Franklin Street, 19th Floor,
Boston, Massachusetts 02110, as agent (in such capacity, the “Agent”)
for its own benefit and the benefit of the other lenders; in consideration of
the mutual covenants herein contained and benefits to be derived herefrom.

 

W I T N E S S E T H :

 

A.                                   Reference is
made to a certain:

 

Loan
Agreement dated as of August 11, 2006 as amended by that certain Joinder
to Loan Agreement, Modification to Senior Loan Agreement and Third Modification
to Bridge Loan Agreement dated December 20, 2007, as further amended by
that certain Joinder to Loan Agreement, Second Modification to Senior Loan
Agreement and Fourth Modification to Bridge Loan Agreement dated February 12,
2008 (and as amended, modified, supplemented, or restated and in effect from
time to time, the “Senior Loan Agreement”) in the maximum aggregate
amount of $300,000,000.00 (the “Senior Loan”) by and among Borrowers,
Agent and the lenders party thereto (collectively the “Lender”) as 

 

1

 

further
evidenced by that certain Promissory Note dated as of August 11, 2006 in
the amount of the Senior Loan (the “Senior Note”);

 

and
a certain;

 

Bridge
Loan Agreement dated as of August 11, 2006, as amended by that certain
Loan Modification Agreement dated June 6, 2007, as further amended by that
certain Second Loan Modification Agreement dated July 1, 2007, as further
amended by that certain Joinder to Loan Agreement, Modification to Senior Loan
Agreement and Third Modification to Bridge Loan Agreement dated December 20,
2007, as further amended by that certain Joinder to Loan Agreement, Second
Modification to Senior Loan Agreement and Fourth Modification to Bridge Loan
Agreement dated February 12, 2008, as further amended by that certain
Fifth Modification to Bridge Loan Agreement dated March 28, 2008, as
further amended by that certain Sixth Modification to Bridge Loan Agreement
dated May 15, 2008, as further amended by that certain Seventh
Modification to Bridge Loan Agreement dated June 30, 2008  (as amended, modified, supplemented or
restated and in effect from time to time, the “Bridge Loan Agreement”)
in the maximum aggregate amount of $60,000,000.00 (the “Bridge Loan”),
by and among Borrowers, the Agent and the Lender party thereto, as further
evidenced by that certain Promissory Note dated as of August 11, 2006 in
the amount of the Bridge Loan (the “Bridge Note”).

 

All
capitalized terms used herein, and not otherwise defined herein, shall have the
meanings assigned to such terms in the Senior Loan Agreement and the Bridge
Loan Agreement.

 

B.                                     Borrowers have
requested that Lender release the Alexandria Borrower, Pittsburgh Borrower,
Lexington Borrower, Seville Borrower, Danville Borrower, Pittsburgh 2 Borrower
and Waco Borrower (collectively, the “Release Borrowers”) from their
obligations under the Senior Loan Agreement and under the Bridge Loan
Agreement; and release the respective properties owned by them and further
described on Exhibit A attached hereto (collectively, the “Release
Properties”) from the lien of any security documents of the Agent and
Lender with respect thereto (the “Release Security Documents”, also identified
on Exhibit A). The term “Remaining Borrowers” as used in this
Agreement shall mean all of the Borrowers as defined in the initial paragraph
to this Agreement, extracting from the list those Borrowers who have been
defined herein as Release Borrowers.

 

C.                                     Lender has
agreed to release the Release Borrowers from their obligations under the Senior
Loan and the Bridge Loan and the Release Properties from the lien of Lender’s
security interests, subject to the agreements, terms and conditions set forth
in this Agreement.

 

2

 

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

 

1.                                       Senior Loan
Principal  Payment.   On or before the Effective Date, Borrowers
shall make a payment in the amount of $47,020,009.00 to be applied in reduction
of the principal balance on the Senior Loan.

 

2.                                       Maximum Aggregate
Senior Loan Amount. 
Notwithstanding anything in the Senior Loan Agreement to the contrary,
the maximum aggregate amount of the Senior Loan is hereby $206,692,502.00.

 

3.                                       Bridge Loan
Principal  Payment.   On or before the Effective Date, Borrowers shall
make a payment in the amount of $9,404,004.00 to be applied in reduction of the
principal balance on the Bridge Loan.

 

4.                                       Maximum
Aggregate Bridge Loan Amount.  Notwithstanding anything in the Bridge  Loan Agreement to the contrary, the maximum
aggregate amount of the Bridge Loan is hereby $41,898,738.00.

 

5.                                       Maturity Date
of the Bridge Loan. From and after the Effective Date, it is agreed by
and among the Agent, Lender and Borrower that the Maturity Date of the Bridge
Loan as defined in Section 2.2 of the Bridge Loan Agreement is hereby
amended to be August 11, 2009, and wherever stated in the Loan Documents,
the Maturity Date of the Bridge Loan is August 11, 2009.

 

6.                                       Amendment to
Bridge Note.  The
definition of the term “Spread” at Section 5.13 of the Bridge Note is
hereby deleted and replaced with the following:

 

“The term “Spread” shall mean four hundred (400)
basis points.”

 

7.                                       Amendment to
Senior Loan Agreement.  Section 9.19.1(iii) of
the Senior Loan Agreement is hereby deleted and replaced with the following:

 

“Debt
Service Coverage” shall mean the ratio for the Calculation Period of:  (A) Net Operating Income (in each
instance calculated in the aggregate with respect to each Property which is
Collateral) to (B) aggregate Debt Service on the Loan.”

 

8.                                       Release of
Release  Borrowers.  As of the Effective Date, the Release
Borrowers are hereby released as Borrowers and loan parties pursuant to the
Senior Loan Agreement and Bridge Loan Agreement and are hereby released from
their obligations arising under the Release Security Documents. The mortgage
lien of the Agent with respect to the Release Properties shall terminate as of
the Effective Date.  Agent shall execute
such  documents and instruments
(including UCC-3 financing statements) to effectuate this release and
termination.

 

9.                                       Conditions
Precedent to Effectiveness.  This Agreement shall become effective as of
the Effective Date at such time when all of the following conditions are
satisfied:

 

3

 

(a)                                  All action on
the part of each Borrower and each other party necessary for the valid
execution, delivery and performance by each Borrower of this Agreement and all
other documentation, instruments, and agreements to be executed in connection
herewith shall have been duly and effectively taken and evidence thereof
reasonably satisfactory to the Agent shall have been provided to the Agent.

 

(b)                                 STAG
Investments Holdings III, LLC shall have executed a Consent to this Agreement
(signature page following Lender and Borrowers’ signature pages hereto).

 

(c)                                  With respect to
the Senior Loan, Steven R. Karp and Steven S. Fischman shall have executed a
$5,000,000.00 Guaranty in form acceptable to the Lender effective as of the
Effective Date, such Guaranty to be released when the conditions set forth
therein are satisfied.

 

(d)                                 With respect to
the Bridge Loan, Steven R. Karp and Steven S. Fischman shall have executed an
Amended and Restated Guaranty in form acceptable to the Lender effective as of
the Effective Date.

 

(e)                                  The Agent shall
have received such executed resolutions, secretary’s certificates and
certificates of legal existence as the Agent may reasonably specify all in form
and substance reasonably satisfactory to the Agent and its counsel.

 

(f)                                    The Agent shall
have received a written legal opinion of the Borrowers’ and Guarantors’ counsel
addressed to the Agent and the Lender, covering such matters relating to the
Borrowers, Guarantors, the Loan Documents and/or the transactions contemplated
thereby as the Agent shall reasonably request.

 

(g)                                 The Borrowers
shall have paid an arrangement fee in respect of the Bridge Loan maturity date
extension in the amount of $104,747.00.

 

(h)                                 All fees and
expenses incurred by the Agent in connection with the preparation and
negotiation of this Agreement and related documents (including the reasonable
fees and expenses of counsel to the Agent) shall have been paid in full.

 

(i)                                     No Event of
Default shall have occurred and be continuing.

 

(j)                                     The Borrowers
shall have executed and delivered to the Agent such additional documents,
instruments, and agreements as the Agent may reasonably request.

 

10.                                 Other
Provisions.

 

(a)                                  The Remaining
Borrowers hereby ratify, confirm, and reaffirm all of the terms and conditions
of the Senior Loan Agreement and the Bridge Loan Agreement, and all of the
other documents, instruments, and agreements evidencing the Senior Loan and the
Bridge Loan including, without limitation, the Senior Note and the Bridge
Note.  The Remaining Borrowers further
acknowledge and agree 

 

4

 

that all of the terms and
conditions of the Senior Loan arrangement and Bridge Loan arrangement shall
remain in full force and effect except as expressly provided in this
Agreement.  No novation of the
indebtedness evidenced by the Senior Note, Bridge Note, Senior Loan Agreement,
Bridge Loan Agreement any other loan document pertaining to the foregoing shall
occur as a result of the execution of this Agreement.

 

(b)                                 To the extent
any Defaults or Events of Default are existing as of the date hereof, the Agent
hereby  expressly reserves all of its rights and remedies in connection
therewith, and the execution of this Agreement shall not be deemed a waiver of
any such Default or Event of Default nor a waiver of any of the Agent’s rights
and remedies in connection therewith.

 

(c)                                  Except as
specifically amended by this Agreement and the other documents executed and
delivered in connection herewith, all of the terms and conditions of the Senior
Loan Agreement and the Bridge Loan Agreement and of the other Loan Documents
shall remain in full force and effect as in effect prior to the date hereof, without
releasing any obligors thereon or collateral security therefor, other than the
Release Borrowers and the Release Properties named herein.

 

(d)                                 The Borrowers
acknowledge, confirm and agree that they have no offsets, defenses, claims or
counterclaims against the Agent or Lender with respect to any of the Borrowers’
liabilities and obligations to the Lender under the Senior Loan arrangement and
the Bridge Loan arrangement, and to the extent that the Borrowers have any such
claims under the foregoing loan arrangements, the Borrowers affirmatively WAIVE
and RENOUNCE such claims as of the Effective Date.

 

(e)                                  Any
determination that any provision of this Agreement or any application hereof is
invalid, illegal or unenforceable in any respect and in any instance shall not
affect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions
of this Agreement.

 

(f)                                    This Agreement
may be executed in several counterparts and by each party on a separate
counterpart, each of which when so executed and delivered shall be an original,
and all of which together shall constitute one instrument.  In proving this Agreement, it shall not be
necessary to produce or account for more than one such counterpart signed by
the party against whom enforcement is sought.

 

(g)                                 Each Loan
Agreement, as amended by this Agreement, constitutes the entire agreement of
the parties regarding the matters contained herein and shall not be modified by
any prior oral or written communications.

 

(h)                                 THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF 

 

5

 

MASSACHUSETTS, WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

[Remainder
of page intentionally blank]

 

6

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly
executed and delivered by its proper and duly authorized officer as of the date
set forth above.

 

 

	
  BORROWERS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG
  III ALBION, LLC

  	
   

  	
  STAG
  III MALDEN, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:     Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III MASON, LLC

  	
   

  	
  STAG
  III GREAT BEND, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:     Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III ST. LOUIS, LLC

  	
   

  	
  STAG
  III MILWAUKEE, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:     Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III POMFRET, LLC

  	
   

  	
  STAG
  III YOUNGSTOWN, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:     Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III TAVARES, LLC

  	
   

  	
  STAG
  III ROUND ROCK, L.P.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:
  STAG Investments GP III, LLC, its sole general partner

  
	
  Name:  Stephen C. Mecke

  	
   

  	
   

  
	
  Title:    Authorized Officer

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  STAG
  III STREAMWOOD, LLC

  	
   

  	
  Title:     Authorized Officer

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  STAG
  III CHESTERFIELD, LLC

  
	
  Name:  Stephen C. Mecke

  	
   

  	
   

  
	
  Title:    Authorized Officer

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  STAG
  III DAYTONA BEACH, LLC

  	
   

  	
  Title:     Authorized Officer

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  
	
  Name:  Stephen C. Mecke

  	
   

  	
   

  
	
  Title:    Authorized Officer

  	
   

  	
   

  

 

7

 

	
  STAG
  III ARLINGTON, L.P.

  	
   

  	
  STAG
  III FAIRFIELD, LLC

  
	
   

  	
   

  	
   

  
	
  By:
  STAG Investments GP III, LLC, its sole general partner

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
  STAG
  III MAYVILLE, LLC

  
	
   

  	
   

  	
   

  
	
  STAG
  III FARMINGTON, LLC

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
  STAG
  III MILWAUKEE 2, LLC

  
	
   

  	
   

  	
   

  
	
  STAG
  III CINCINNATI, LLC

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
  STAG
  III JACKSON, LLC

  
	
   

  	
   

  	
   

  
	
  STAG
  III APPLETON, LLC

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
  STAG
  III MARYLAND BORROWER, LLC

  
	
   

  	
   

  	
   

  
	
  STAG
  III JEFFERSON, LLC

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
  STAG
  III POCATELLO, LLC

  
	
   

  	
   

  	
   

  
	
  STAG
  III ELKHART, LLC

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
  STAG
  III CANTON, LLC

  
	
   

  	
   

  	
   

  
	
  STAG
  III HOLLAND 2, LLC

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
  Name:   Stephen C. Mecke

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  Title:     Authorized Officer

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
   

  

 

8

 

	
  STAG
  III RAPID CITY, LLC

  	
   

  	
  STAG
  III NEWARK, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III AMESBURY, LLC

  	
   

  	
  STAG
  III TWINSBURG, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III HOLLAND, LLC

  	
   

  	
  STAG
  III DAYTON, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III SERGEANT BLUFF, LLC

  	
   

  	
  STAG
  IV DANVILLE, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III LEWISTON, LLC

  	
   

  	
  STAG
  IV SEVILLE, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III PENSACOLA, LLC

  	
   

  	
  STAG
  IV PITTSBURGH, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
	
   

  	
   

  	
   

  
	
  STAG
  III BOARDMAN, LLC

  	
   

  	
  STAG
  IV ALEXANDRIA, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:  Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:    Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  

 

9

 

	
  STAG
  IV LEXINGTON, LLC

  	
   

  	
  STAG
  IV PITTSBURGH 2, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  Name:   Stephen C. Mecke

  	
   

  	
  Name:  Stephen C. Mecke

  
	
  Title:     Authorized Officer

  	
   

  	
  Title:    Authorized Officer

  
					

 

 

	
  STAG
  IV WACO, L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By
  STAG Investments GP IV, LLC, its general partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
   

  
				

 

10

 

	
  AGENT AND LENDER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANGLO IRISH BANK CORPORATION PLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Kieran Dowling

  	
   

  	
   

  
	
  Name: Kieran Dowling

  	
   

  	
   

  
	
  Title: Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Paul Stephens

  	
   

  	
   

  
	
  Name: Paul Stephens

  	
   

  	
   

  
	
  Title: Associate Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANGLO IRISH BANK CORPORATION PLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Kieran Dowling

  	
   

  	
   

  
	
  Name: Kieran Dowling

  	
   

  	
   

  
	
  Title: Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Paul Stephens

  	
   

  	
   

  
	
  Name: Paul Stephens

  	
   

  	
   

  
	
  Title: Associate Director

  	
   

  	
   

  

 

11

 

	
  Consented to and Agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTOR:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG INVESTMENTS HOLDINGS
  III, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  
	
  Name:   Stephen C. Mecke

  	
   

  	
   

  
	
  Title:     Authorized Officer

  	
   

  	
   

  
				

 

12

 

EXHIBIT A

 

Released Properties and Released Security Documents

 

13

 

FOURTH MODIFICATION TO SENIOR LOAN AGREEMENT

 

This
Fourth Modification to Senior Loan Agreement (this “Agreement”) is made
as of this 31st day of January, 2009 (the “Effective Date”),
by and among STAG III ALBION, LLC, STAG III MASON, LLC, STAG III ST. LOUIS,
LLC, STAG III POMFRET, LLC, STAG III TAVARES, LLC, STAG III STREAMWOOD, LLC,
STAG III DAYTONA BEACH, LLC, STAG III MALDEN, LLC,  STAG III GREAT BEND, LLC, STAG III MILWAUKEE,
LLC, STAG III YOUNGSTOWN, LLC, STAG III ROUND ROCK, L.P., STAG III CHESTERFIELD,
LLC, STAG III ARLINGTON, L.P., STAG III FARMINGTON, LLC, STAG III CINCINNATI,
LLC, STAG III APPLETON, LLC, STAG III JEFFERSON, LLC, STAG III ELKHART, LLC,
STAG III HOLLAND 2, LLC, STAG III FAIRFIELD, LLC, STAG III MAYVILLE, LLC, STAG
III MILWAUKEE 2, LLC, STAG III JACKSON, LLC, STAG III MARYLAND BORROWER, LLC,
STAG III POCATELLO, LLC, STAG III CANTON, LLC, STAG III RAPID CITY, LLC, STAG
III AMESBURY, LLC, STAG III HOLLAND, LLC, STAG III SERGEANT BLUFF, LLC, STAG
III LEWISTON, LLC, STAG III PENSACOLA, LLC, STAG III BOARDMAN, LLC, STAG III
NEWARK, LLC, STAG III TWINSBURG, LLC and STAG III DAYTON, LLC all Delaware
limited liability companies or Delaware limited partnerships (each, a “Borrower”
and collectively, the “Borrowers”) all having principal executive
offices at c/o STAG Capital Partners, 99 Chauncy Street, 10th Floor, Boston, Massachusetts 02111 and ANGLO
IRISH BANK CORPORATION LIMITED, a private limited company incorporated under
the laws of Ireland having company registration number 22045 (f/k/a Anglo Irish
Bank Corporation plc, a banking corporation) and having its registered office
at Stephen Court, 18/21 St. Stephen’s Green, Dublin 2, Ireland and with
offices at 265 Franklin Street, 19th Floor, Boston, Massachusetts 02110,
as agent (in such capacity, the “Agent”) for its own benefit and the
benefit of the other lenders; in consideration of the mutual covenants herein
contained and benefits to be derived herefrom.

 

W I T N E S S E T H:

 

A.                                   Reference is
made to a certain:

 

Loan
Agreement dated as of August 11, 2006 as amended by that certain Joinder
to Loan Agreement, Modification to Senior Loan Agreement and Third Modification
to Bridge Loan Agreement dated December 20, 2007, as amended by that
certain Joinder to Loan Agreement, Second Modification to Senior Loan Agreement
and Fourth Modification to Bridge Loan Agreement dated February 12, 2008,
as further amended by that certain Third Modification to Senior Loan Agreement,
Eighth Modification to Bridge Loan Agreement and Agreement to Release Properties
dated July 28, 2008 (and as amended, modified, supplemented, or restated
and in effect from time to time, the “Senior Loan Agreement”) in the
maximum aggregate amount of $300,000,000.00 (the “Senior Loan”) by and
among Borrowers, Agent and the lenders party thereto (collectively the “Lender”)
as further evidenced by that certain Promissory Note dated as of August 11,
2006 in the maximum amount of $300,000,000.00 as amended and restated by that
certain Amended and Restated Promissory Note dated January 31, 2009 in the
maximum amount of $200,811,888.00 (the “Senior Note” and the other 

 

1

 

documents
evidencing, administering, securing and governing the terms and conditions of
the Senior Loan, the “Senior Loan Documents”);

 

and
a certain:

 

Bridge
Loan Agreement dated as of August 11, 2006, as amended by that certain
Loan Modification Agreement dated June 6, 2007, as further amended by that
certain Second Loan Modification Agreement dated July 1, 2007, as further
amended by that certain Joinder to Loan Agreement, Modification to Senior Loan
Agreement and Third Modification to Bridge Loan Agreement dated
December 20, 2007, as further amended by that certain Joinder to Loan
Agreement, Second Modification to Senior Loan Agreement and Fourth Modification
to Bridge Loan Agreement dated February 12, 2008, as further amended by
that certain Fifth Modification to Bridge Loan Agreement dated March 28,
2008, as further amended by that certain Sixth Modification to Bridge Loan
Agreement dated May 15, 2008, as further amended by that certain Seventh
Modification to Bridge Loan Agreement dated June 30, 2008, as further
amended by that certain Third Modification to Senior Loan Agreement, Eighth
Modification to Bridge Loan Agreement and Agreement to Release Properties dated
July 28, 2008 (as amended, modified, supplemented or restated and in
effect from time to time, the “Bridge Loan Agreement”) in the maximum
aggregate amount of $60,000,000.00 (the “Bridge Loan”), by and among Borrowers,
the Agent and the Lender party thereto, as further evidenced by that certain
Promissory Note dated as of August 11, 2006 in the maximum amount of
$60,000,000.00 as amended and restated by that certain Amended and Restated
Promissory Note dated January 31, 2009 in the maximum amount of
$40,826,734.00 (the “Bridge Note” and the other documents evidencing,
administering, securing and governing the terms and conditions of the Bridge
Loan, the “Bridge Loan Documents”).

 

All
capitalized terms used herein, and not otherwise defined herein, shall have the
meanings assigned to such terms in the Senior Loan Agreement and the Bridge
Loan Agreement.

 

B.                                     Borrowers have
requested that Lender extend the Maturity Date of the Senior Loan and the
Bridge Loan and Lender has agreed to so extend the Maturity Date subject to the
agreements, terms and conditions set forth in this Agreement.

 

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

 

1.                                       Agent/Lender
Name Change.  The name of
Agent and Lender is hereby changed to ANGLO IRISH BANK CORPORATION LIMITED, a
private limited company incorporated under the laws of Ireland.

 

2

 

2.                                       Senior Loan
Principal Payment.  On or
before February 3, 2009, Borrowers shall make a payment in the amount of
$5,000,000.00 to be applied in reduction of the principal balance on the Senior
Loan, after which the outstanding principal balance of the Senior Loan will be
$200,654,112.07.

 

3.                                       Maximum
Aggregate Senior Loan Amount.  Notwithstanding anything in the Senior Loan
Agreement to the contrary, the maximum aggregate amount of the Senior Loan is
hereby $200,811,888.00.

 

4.                                       Maturity Date
of the Senior Loan.  From and
after the Effective Date, it is agreed by and among the Agent, Lender and
Borrowers that the terms “Maturity Date” and “Extended Maturity Date” of the
Senior Loan as defined in Section 2.2 of the Senior Loan Agreement are
hereby modified to mean January 31, 2012 wherever stated in the Senior
Loan Documents.  The term “Extended Term”
as defined in Section 2.2 of the Senior Loan Agreement is hereby modified
in the Senior Loan Agreement to mean the period commencing January 31,
2009 and ending January 31, 2012 wherever stated in the Senior Loan
Documents.  There are no rights to
further extend the term of the Senior Loan available to the Borrowers.

 

5.                                       Interest Rate
Protection Arrangements.  Section 9.12
of the Senior Loan Agreement is hereby deleted and replaced by the following:

 

Borrowers
shall have the option to enter into Hedging Contracts with Agent for up to 100%
of the principal balance of the Senior Loan for the term of the Senior
Loan.  Any Hedging Obligations thereunder
shall be secured by all Collateral securing the Senior Loan.  “Hedging Obligations” as used
hereunder means, with respect to the Borrowers, all liabilities of the
Borrowers to the Agent under Hedging Contracts. 
“Hedging  Contracts” as used hereunder means, interest rate
swap agreements, interest rate cap agreements and interest rate collar
agreements, or any other agreements or arrangements entered into between the
Borrowers and the Agent and designed to protect the Borrowers against
fluctuations in interest rates or currency exchange rates with respect to the
Senior Loan.  The terms of any interest
rate swap agreements will be governed by the standard ISDA documents, with
modifications mutually agreed upon by Borrowers and Agent.

 

6.                                       Obligations.  The definition of “Obligations” as defined in
Section 3.1 of the Senior Loan Agreement shall be modified to include
Hedging Obligations.

 

7.                                       Assignment of
Interest Rate Protection Agreements.  The following shall be added as a new Section 3.1.6
of the Senior Loan Agreement:

 

Assignment
of Interest Rate Protection.  An assignment in favor of Agent on behalf of
the Lenders of any Hedging Contracts entered into by the Borrowers and Agent
with respect to the Senior Loan (the “Rate Protection Assignment”).

 

8.                                       Loan Documents.  The definition of “Loan Documents” in Section 3.2
of the Senior Loan Agreement is hereby modified to include the Rate Protection
Assignment.

 

3

 

9.                                       Loan to Value
Ratio.

 

(a)                                  Section 9.18.1
of the Senior Loan Agreement is hereby deleted and replaced by the following:

 

LTV.  After August 1,
2010 the ratio (“Loan To Value Ratio” or “LTV”) obtained by dividing: (i) the
outstanding principal balance of the Loan, by (ii) the aggregate Value of
the Property, expressed as a percentage, shall not be greater than seventy-five
percent (75%).  For the purposes of this
Loan Agreement, the “Value of the Property” shall mean such Value of the
Property (on an aggregate basis) as determined by the Agent pursuant to each
Original Appraisal or by a new appraisal ordered by and reasonably acceptable
to Agent.  The Loan To Value Ratio shall
be tested by Agent annually commencing on August 1, 2010.

 

10.                                 Debt Service
Covenant.

 

(a)                                  Section 9.19.1(i) of
the Senior Loan Agreement is hereby deleted and replaced by the following:

 

“Calculation
Date” shall mean the last day of each six (6) month period commencing with
June 30, 2009.

 

(b)                                 Section 9.19.1(ii) of
the Senior Loan Agreement is hereby deleted and replaced by the following:

 

“Calculation
Period” shall mean each six (6) month
period which ends on a Calculation Date.

 

(c)                                  Section 9.19.1(vi) of
the Senior Loan Agreement is hereby deleted and replaced by the following:

 

“Debt
Service on the Loan” shall mean the higher of: (i) the actual principal
and interest paid or payable under the Senior Loan during the Calculation
Period, or (ii) the payments of principal and interest that would have
been payable under an assumed loan during the Calculation Period in an amount
equal to the outstanding principal balance of the Senior Loan at the inception
of the relevant Calculation Period bearing interest at the Deemed Rate of
Interest payable on a direct reduction basis over twenty-five (25) years; provided,
that if in excess of 95% of the aggregate principal balance of the Senior Loan
is subject to an interest rate swap agreement through the Maturity Date, the
Debt Service on the Loan shall be determined by using the actual principal and
interest payable under the Senior Loan during the Calculation Period after
giving effect to the impact of such interest rate swap agreement.

 

(d)                                 Section 9.19.1(vii) of
the Senior Loan Agreement is hereby deleted and replaced by the following:

 

“Deemed
Rate of Interest” shall mean the higher of (a) the actual rates in effect
under the Note, or (b) the annual rate of interest payable on the relevant
Calculation Date (that is, the last day of the applicable Calculation Period)
on 

 

4

 

seven
(7) year United States Treasury obligations in amounts approximating the
principal balance of the Senior Loan at the inception of the Calculation Period
plus three percent (3.00%)

 

11.                                 Partial
Releases.  Section 9.21
of the Senior Loan Agreement is hereby deleted and replaced by the following:

 

9.21  Partial Release.  Provided no Event of Default is then in
existence hereunder, upon the written request of the Borrowers, provided at
least ten (10) Business Days prior to the date of the requested release,
the Agent shall release a Property from the lien of the Security Documents upon
the satisfaction of the following conditions:

 

(i)                                     The Agent shall
have received the Partial Release Payment for such Property. As used herein, “Partial
Release Payment” shall mean, for any Property, that amount which is equal to
1.2 multiplied by the Loan Amount advanced with respect to such Property;

 

(ii)                                  The Borrowers
shall simultaneous with the delivery of the Partial Release Payment, repay the
Bridge Loan in an amount equal to the Partial Release Payment required to be
paid pursuant to the Bridge Loan Documents;

 

(iii)                               After giving
effect to the release of the subject Property, either

 

a)                                      the Borrowers
will not violate the minimum Debt Service Coverage covenant, as calculated
pursuant to Section 9.19.2 with a Calculation Period beginning as of
effective date of the release of the Property, and with the Debt Service on the
Loan calculated using the higher of: (i) the actual principal and interest
paid or payable under the Senior Loan during the Calculation Period, or (ii) the
payments of principal and interest that would have been payable under an
assumed loan during the Calculation Period in an amount equal to the
outstanding principal balance of the Senior Loan at the inception of the
relevant Calculation Period bearing interest at the Deemed Rate of Interest
payable on a direct reduction basis over twenty (20) years; provided,
that if in excess of 95% of the aggregate principal balance of the Senior Loan
is subject to an interest rate swap agreement through the Maturity Date, the
Debt Service on the Loan shall be determined by using the actual principal and
interest payable under the Senior Loan during the Calculation Period after
giving effect to the impact of such interest rate swap agreement; or

 

b)                                     at Borrower’s
option, if such release is to take effect prior to June 30, 2009, in lieu
of compliance with the minimum Debt Service Coverage covenant as calculated in Section 9.21
(iii) (a) above, Borrowers shall pay Agent the Alternative Release
Payment as defined in Section 9.21 (v).

 

5

 

(iv)                              After giving
effect to the release of the subject Property, either

 

a)                                      the Borrowers
will not violate the maximum 75% Loan To Value Ratio covenant, as calculated
pursuant to Section 9.18.1 of the Senior Loan Agreement; or

 

b)                                     at Borrower’s
option, if such release is to take effect prior to August 1, 2010, in lieu
of compliance with the maximum Loan To Value Ratio covenant as calculated in Section 9.21
(iv) (a) above, Borrowers shall pay Agent the Alternative Release
Payment as defined in Section 9.21 (v).

 

(v)                                 The “Alternative
Release Payment” for purposes of this Section 9.21 is the higher of: (X) that
amount which is equal to 1.2 multiplied by the Loan Amount advanced with
respect to such Property; (Y) 100% of the applicable Borrower’s purchase
price for acquisition of the subject Property as set forth in the applicable
sale contracts and closing statements, plus closing costs incurred in
connection with the aforesaid acquisition as reasonably determined by the
settlement statement for such acquisition; or (Z) 100% of the gross sale
proceeds of the sale of the Property net of Approved Closing Costs.  “Approved Closing Costs” shall mean usual and
customary closing costs for commercial real estate transactions in the
applicable surrounding area in which the subject Property is located, such as
deed stamps, reasonable attorneys’ fees, real estate tax adjustments and a
broker’s commission (which broker’s commission shall not exceed the usual and
customary commission charged in the applicable surrounding area) and shall also
include negotiated payments made by the applicable Borrower under the relevant
purchase and sale agreement for the subject Property as part of the sale
transaction and as such payments are reflected by the settlement statement.

 

12.                                 CapEx Escrow
Account.  The
following shall be added as a new Section 9.22 of the Senior Loan
Agreement:

 

CapEx
Escrow Account.  The
Borrowers shall open and maintain an interest-bearing deposit account with the
Agent (the “CapEx Escrow Account”). 
Borrowers shall, on a monthly basis commencing as of March 1, 2009
and on the first day of each month thereafter, deposit into the CapEx Escrow
Account a sum of money in cash equal to the CapEx Escrow Payment Amount.  All such deposited sums shall stand as
additional security for the Obligations and shall not be removed or withdrawn
therefrom except as permitted in this Section 9.22.  As used herein, the term “CapEx Escrow
Payment Amount” means the successive monthly payment amounts set forth on the
schedule (the “CapEx Schedule”) attached hereto as Exhibit A; provided
however, that (a) following a partial prepayment of principal on the
Senior Loan made on account of a Partial Release pursuant to Section 9.21
of the Senior Loan Agreement, or (b) a partial prepayment of principal on
the Senior Loan (including payments made from condemnation or casualty 

 

6

 

proceeds)
in excess of $500,000.00, the remaining CapEx Escrow Payment Amounts shall be
adjusted in accordance with a revised CapEx Schedule to be provided by Agent.

 

(a)                                  No Default.  During the continuance of an Event of
Default, no funds may be withdrawn from the CapEx Escrow Account and Agent may
apply or set off all funds in the CapEx Escrow Account against the Obligations
and otherwise take such actions reasonably necessary for Agent and Lenders to
realize on such application or set off.

 

(b)                                 CapEx/TI/LC
Costs.  Subject to Agent’s prior
approval, which shall not be unreasonably withheld, conditioned or delayed,
funds may be withdrawn by the Borrowers to pay third parties for, or reimburse
Borrowers for capital expenditures, repairs or tenant improvements with respect
to any Property (hereinafter, collectively the “Work”) or leasing costs
with respect to the leasing of any Property (but not including costs relating
to the obtaining possession of any Property) (the “LC Costs”) subject to
the following conditions:

 

(i)                                     Withdrawals for
reimbursements to the Borrowers or to pay third party invoices may be made from
the CapEx Escrow Account at the Borrowers’ request to Agent, not more
frequently than twice a month, on the basis of written requests in accordance
with the method described in this Section 9.22.  Agent shall act upon such requests by the
Borrowers (including any requests for pre-approval of Work or LC Costs
described in paragraphs (ii) and (iii), respectively, within ten (10) Business
Days following the receipt of the written request for such withdrawal, which
action may include, without limitation, approval of the requested withdrawal or
specifying the basis for not approving the request and, where applicable,
requesting additional information and supporting documentation.

 

(ii)                                  All requests by
the Borrowers for reimbursement or to pay third party invoices for Work
performed shall be accompanied with invoices or paid receipts for the Work
performed.  With respect to any request
for withdrawals from the CapEx Escrow Account for Work to be performed in
excess of the lower of $200,000 or 10% of the Value of the Property for which
the request is being made, the Borrowers shall also include in their written
request, for Agent’s review and approval, those items reasonably requested by
Agent pertaining to the Work to be performed, including, without
limitation:  (i) a reasonably
detailed budget (the “Budget”) and estimated schedule for the subject Work; (ii) if
applicable, plans and specifications; (iii) to the extent available at the
time of submission, all applicable contracts or invoices which may include all
relevant construction, architect, or engineer services to be performed and (iv) if
applicable, copies of all final licenses and permits (to be delivered after
completion of the Work, if applicable, and not in any request for
approval).  Borrowers may request Agent’s
pre-approval of the scope of Work to be performed and the Budget for such Work
by submitting such a request to Agent, which pre-approval by Agent shall not be
unreasonably 

 

7

 

withheld, conditioned or
delayed.  Once Agent has pre-approved the
scope and Budget for such Work, as long as there has been no material
modification to such Budget or scope, requests for withdrawals to reimburse
payments made by the applicable Borrower with respect to such Work or to pay
third party invoices for Work performed will be granted, subject to Agent’s
receipt of invoices or receipts for the Work performed and the Consultant’s
approval, if required under paragraph (iv) below.

 

(iii)                               With respect to
any request for withdrawals from the CapEx Escrow Account for reimbursement of
any LC Costs or payment of any LC Costs then due, the Borrowers shall provide
to Agent for review and approval those items reasonably requested by Agent
pertaining to any LC Costs to be paid or reimbursed, including, without
limitation, detailed invoices, proposed leases (if not already provided to
Agent) or other documentation reasonably acceptable to Agent.  Borrowers may request Agent’s pre-approval of
any LC Costs before the applicable Borrower incurs such costs or executes any
leases with respect to such LC Costs by submitting such a request to Agent,
which pre-approval by Agent shall not be unreasonably withheld, conditioned or
delayed.  Any LC Costs that are set forth
in any Lease approved (or deemed approved) by Agent pursuant to Section 9.17
of the Senior Loan Agreement shall not require Agent’s additional approval
hereunder and shall be funded from the CapEx Escrow Account, subject to Agent’s
receipt of the paid invoices and receipts for reimbursement therefor, or other
acceptable evidence that payment of such LC Costs is then due.

 

(iv)                              With respect to
any request for withdrawals from the CapEx Escrow Account for Work to be
performed or LC Costs to be paid in excess of the lower of $200,000 or 10% of
the Value of the Property for which the request is being made, Agent shall have
the right to employ one or more independent engineers, architects, builders or
other construction specialists, environmental advisors, scientists,
accountants, and attorneys to act as an advisor to Agent, and to any Lender, in
connection with the proposed withdrawal to be made from the CapEx Escrow
Account (each of which shall be a “Consultant”). The reasonable costs and fees
of each Consultant permitted hereunder shall be paid by Borrower upon billing
therefor and, if not so paid within thirty (30) days, may be paid directly by
Agent on behalf of the Lenders through a withdrawal from the CapEx Escrow
Account.  Upon reasonable notice and at
reasonable times, subject to the provisions of the Leases, Borrower shall
provide Consultants with continuing access to all aspects of the Work being
performed.

 

(v)                                 Neither Agent
nor any Lender nor any of their Consultants shall have liability to Borrowers
or any contractor, architect, engineer or other Person working directly or
indirectly for or at the request of any Borrower on account of (i) services
performed by such Consultant; (ii) any failure or neglect (absent gross
negligence or willful misconduct) by any such 

 

8

 

Consultant to properly
perform services; or (iii) any approval or disapproval of work, construction
documents, plans and specifications, requisitions or other matters (except that
Agent may not unreasonably withhold, condition or deny its consent).  Neither Agent, nor any such Consultant, nor
any Lender, shall have any obligation regarding proper performance of the Work.

 

(vi)                              Agent reserves
the right to review the Work to be performed on a periodic basis and the LC
Costs to be withdrawn.  Amounts withdrawn
shall not exceed one hundred percent (100%) of the actual costs incurred by
Borrowers or paid by Borrowers in completing the Work or for the LC Costs to be
paid.  All Work performed by the
Borrowers shall be performed in a good and workmanlike manner in accordance
with applicable legal requirements, without defects.

 

(c)                                  Borrowers agree
and acknowledge that Agent is not obligated to permit the withdrawal of any
funds from the CapEx Escrow Account except as provided herein.  Borrowers hereby acknowledge and agree that
any permission for the withdrawal of the funds for any Work shall be
conditioned upon receipt by Agent, in form and substance reasonably
satisfactory to Agent, of such additional items as Agent may reasonably require
to confirm the validity and priority of its mortgage on the subject Property,
including but not limited, in the event of any Work in excess of One Million
Dollars ($1,000,000.00), to a title examination and endorsement to the Agent’s
title policy confirming the validity and priority of its mortgage and security
interest hereunder.

 

(d)                                 Borrowers
further agree and acknowledge that permission for withdrawal of the funds from
the CapEx Escrow Account shall be conditioned upon certification, by the
applicable Borrower with respect to the Property for which funds are requested,
that no event then exists or fails to exist which is or which, solely with the
passage of time or the giving of notice (or both), would be an Event of
Default.  Each requisition for permission
to withdraw funds shall be in form reasonably satisfactory to Agent and shall
be signed by the applicable Borrower setting forth the amount and purpose of
the withdrawal.  If costs for any Work or
LC Costs exceed the amount approved by Agent to be withdrawn from the CapEx
Escrow Account, the applicable Borrower shall be obligated to advance all funds
necessary to complete the Work or to pay for the LC Costs prior to the last
withdrawal to be made by the applicable Borrower with respect to the applicable
Work to be performed or the applicable LC Costs to be paid.

 

(e)                                  The parties
agree that amounts funded into the CapEx Escrow Account shall not be considered
Operating Expenses for the purposes of Section 9.19.1(v) of the
Senior Loan Agreement, provided however, that withdrawals from the CapEx Escrow
Account on account of any expenditures that are Operating Expenses under Section 9.19.1(v) shall
continue to be considered Operating Expenses under Section 9.19.1(v) for
purposes of any relevant calculations.

 

9

 

13.                                 Conditions
Precedent to Effectiveness.  This Agreement shall become effective as of
the Effective Date at such time when all of the following conditions are
satisfied:

 

(a)                                  All action on
the part of each Borrower and each other party necessary for the valid
execution, delivery and performance by each Borrower of this Agreement, that
certain Ninth Modification to Bridge Loan Agreement dated as of the date
hereof, and all other documentation, instruments, and agreements to be executed
in connection herewith shall have been duly and effectively taken and evidence
thereof reasonably satisfactory to the Agent shall have been provided to the
Agent.

 

(b)                                 Borrowers shall
have made the $5,000,000.00 Senior Loan principal payment.

 

(c)                                  STAG
Investments Holdings III, LLC shall have executed a Consent to this Agreement
(signature page following Lender and Borrowers’ signature pages hereto).

 

(d)                                 With respect to
the Senior Loan, Stephen R. Karp and Steven S. Fischman shall have executed a
$5,000,000.00 Amended and Restated Guaranty in form acceptable to the Lender
effective as of the Effective Date.

 

(e)                                  Borrowers shall
have opened the CapEx Escrow Account.

 

(f)                                    The Agent shall
have received such executed resolutions, secretary’s certificates and
certificates of legal existence as the Agent may reasonably specify all in form
and substance reasonably satisfactory to the Agent and its counsel.

 

(g)                                 The Agent shall
have received a written legal opinion of the Borrowers’ and Guarantors’ counsel
addressed to the Agent and the Lender, covering such matters relating to the
Borrowers, Guarantors, the Loan Documents and/or the transactions contemplated
thereby as the Agent shall reasonably request.

 

(h)                                 The Borrowers
shall have paid an extension fee in the amount of $302,048.00 in respect of the
extensions of the Senior Loan Maturity Date and Bridge Loan Maturity Date.

 

(i)                                     All fees and
expenses incurred by the Agent in connection with the preparation and
negotiation of this Agreement and related documents (including the reasonable
fees and expenses of counsel to the Agent) shall have been paid in full.

 

(j)                                     No Event of
Default shall have occurred and be continuing.

 

(k)                                  The Borrowers
shall have executed and delivered to the Agent such additional documents,
instruments, and agreements as the Agent may reasonably request.

 

10

 

14.                                 Other
Provisions.

 

(a)                                  The Borrowers
hereby ratify, confirm, and reaffirm all of the terms and conditions of the
Senior Loan Agreement and all of the other documents, instruments, and
agreements evidencing the Senior Loan. 
The Borrowers further acknowledge and agree that all of the terms and
conditions of the Senior Loan arrangement shall remain in full force and effect
except as expressly provided in this Agreement. 
No novation of the indebtedness evidenced by the Senior Note, Senior
Loan Agreement or any other loan document pertaining to the foregoing shall
occur as a result of the execution of this Agreement.

 

(b)                                 To the extent
any Defaults or Events of Default are existing as of the date hereof, the Agent
hereby expressly reserves all of its rights and remedies in connection
therewith, and the execution of this Agreement shall not be deemed a waiver of
any such Default or Event of Default nor a waiver of any of the Agent’s rights
and remedies in connection therewith.

 

(c)                                  Except as
specifically amended by this Agreement and the other documents executed and
delivered in connection herewith, all of the terms and conditions of the Senior
Loan Agreement and of the other Loan Documents shall remain in full force and
effect as in effect prior to the date hereof, without releasing any
obligors thereon or collateral security therefor.

 

(d)                                 The Borrowers
acknowledge, confirm and agree that they have no offsets, defenses, claims or
counterclaims against the Agent or Lender with respect to any of the Borrowers’
liabilities and obligations to the Lender under the Senior Loan arrangement and
to the extent that the Borrowers have any such claims under the foregoing loan
arrangements, the Borrowers affirmatively WAIVE and RENOUNCE such claims as of
the Effective Date.

 

(e)                                  Any
determination that any provision of this Agreement or any application hereof is
invalid, illegal or unenforceable in any respect and in any instance shall not
affect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions
of this Agreement.

 

(f)                                    This Agreement
may be executed in several counterparts and by each party on a separate
counterpart, each of which when so executed and delivered shall be an original,
and all of which together shall constitute one instrument.  In proving this Agreement, it shall not be
necessary to produce or account for more than one such counterpart signed by
the party against whom enforcement is sought.

 

(g)                                 The Senior Loan
Agreement, as amended by this Agreement, constitutes the entire agreement of
the parties regarding the matters contained herein and shall not be modified by
any prior oral or written communications.

 

(h)                                 THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF 

 

11

 

MASSACHUSETTS, WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

[Remainder of page intentionally
blank]

 

12

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly
executed and delivered by its proper and duly authorized officer as of the date
set forth above.

 

BORROWERS:

 

	
  STAG III ALBION, LLC

  	
   

  	
  STAG
  III MALDEN, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III MASON, LLC

  	
   

  	
  STAG
  III GREAT BEND, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III ST. LOUIS, LLC

  	
   

  	
  STAG
  III MILWAUKEE, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III POMFRET, LLC

  	
   

  	
  STAG
  III YOUNGSTOWN, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By: 

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III TAVARES, LLC

  	
   

  	
  STAG
  III ROUND ROCK, L.P.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By: STAG Investments GP
  III, LLC, its sole general partner

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  STAG III STREAMWOOD, LLC

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III CHESTERFIELD, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  STAG III DAYTONA BEACH, LLC

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  

 

13

 

	
  STAG III ARLINGTON, L.P.

  	
   

  	
  STAG
  III FAIRFIELD, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: STAG Investments GP
  III, LLC, its sole general partner

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III MAYVILLE, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  STAG III FARMINGTON, LLC

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III MILWAUKEE 2, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  STAG III CINCINNATI, LLC

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III JACKSON, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  STAG III APPLETON, LLC

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III MARYLAND BORROWER, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Stephen C. Mecke

  
	
  STAG III JEFFERSON, LLC

  	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III POCATELLO, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  STAG III ELKHART, LLC

  	
   

  	
  Name:

  	
  Stephen C. Mecke

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
  STAG
  III CANTON, LLC

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  STAG III HOLLAND 2, LLC

  	
   

  	
  Name:

  	
  Stephen C. Mecke

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
  By:

  	
  /s/
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  

 

14

 

	
  STAG III RAPID CITY, LLC

  	
   

  	
  STAG III NEWARK, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
  Name:

  	
  Stephen C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III AMESBURY, LLC

  	
   

  	
  STAG III TWINSBURG, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
  Name:

  	
  Stephen C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III HOLLAND, LLC

  	
   

  	
  STAG III DAYTON, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
  By:

  	
  /s/ Stephen C. Mecke

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
  Name:

  	
  Stephen C. Mecke

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
  Title:

  	
  Authorized Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III SERGEANT BLUFF,
  LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III LEWISTON, LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III PENSACOLA, LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STAG III BOARDMAN, LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Stephen C. Mecke

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Officer

  	
   

  	
   

  	
   

  

 

15

 

	
  AGENT AND LENDER:

  	
   

  
	
   

  	
   

  	
   

  
	
  ANGLO
  IRISH BANK CORPORATION LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Kieran Dowling

  	
   

  
	
  Name:

  	
  Kieran
  Dowling

  	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Nicholas Lyons

  	
   

  
	
  Name:

  	
  Nicholas
  Lyons

  	
   

  
	
  Title:

  	
  Associate
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANGLO
  IRISH BANK CORPORATION LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Kieran Dowling

  	
   

  
	
  Name:

  	
  Kieran
  Dowling

  	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Nicholas Lyons

  	
   

  
	
  Name:

  	
  Nicholas
  Lyons

  	
   

  
	
  Title:

  	
  Associate
  Director

  	
   

  

 

16

 

	
  Consented to and Agreed:

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTOR:

  	
   

  
	
   

  	
   

  	
   

  
	
  STAG INVESTMENTS
  HOLDINGS III, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/
  Stephen C. Mecke

  	
   

  
	
   

  	
  Name:

  	
  Stephen
  C. Mecke

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Officer

  	
   

  

 

17

 

Exhibit A

 

SENIOR LOAN CAP EX PAYMENT
SCHEDULE

 

	
   

  	
  Repayment

  Number

  	
   

  	
  Capex Payment

  Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1

  	
   

  	
  (151,343.28

  	
  )

  	
   

  	
   

  
	
   

  	
  2

  	
   

  	
  (151,973.88

  	
  )

  	
   

  	
   

  
	
   

  	
  3

  	
   

  	
  (152,607.10

  	
  )

  	
   

  	
   

  
	
   

  	
  4

  	
   

  	
  (153,242.97

  	
  )

  	
   

  	
   

  
	
   

  	
  5

  	
   

  	
  (153,881.48

  	
  )

  	
   

  	
   

  
	
   

  	
  6

  	
   

  	
  (154,522.65

  	
  )

  	
   

  	
   

  
	
   

  	
  7

  	
   

  	
  (155,166.49

  	
  )

  	
   

  	
   

  
	
   

  	
  8

  	
   

  	
  (155,813.02

  	
  )

  	
   

  	
   

  
	
   

  	
  9

  	
   

  	
  (156,462.24

  	
  )

  	
   

  	
   

  
	
   

  	
  10

  	
   

  	
  (157,114.17

  	
  )

  	
   

  	
   

  
	
   

  	
  11

  	
   

  	
  (157,768.81

  	
  )

  	
   

  	
   

  
	
   

  	
  12

  	
   

  	
  (158,426.18

  	
  )

  	
   

  	
   

  
	
   

  	
  13

  	
   

  	
  (159,086.29

  	
  )

  	
   

  	
   

  
	
   

  	
  14

  	
   

  	
  (159,749.15

  	
  )

  	
   

  	
   

  
	
   

  	
  15

  	
   

  	
  (160,414.77

  	
  )

  	
   

  	
   

  
	
   

  	
  16

  	
   

  	
  (161,083.17

  	
  )

  	
   

  	
   

  
	
   

  	
  17

  	
   

  	
  (161,754.35

  	
  )

  	
   

  	
   

  
	
   

  	
  18

  	
   

  	
  (162,428.32

  	
  )

  	
   

  	
   

  
	
   

  	
  19

  	
   

  	
  (163,105.11

  	
  )

  	
   

  	
   

  
	
   

  	
  20

  	
   

  	
  (163,784.71

  	
  )

  	
   

  	
   

  
	
   

  	
  21

  	
   

  	
  (164,467.15

  	
  )

  	
   

  	
   

  
	
   

  	
  22

  	
   

  	
  (165,152.43

  	
  )

  	
   

  	
   

  
	
   

  	
  23

  	
   

  	
  (165,840.56

  	
  )

  	
   

  	
   

  
	
   

  	
  24

  	
   

  	
  (166,531.57

  	
  )

  	
   

  	
   

  
	
   

  	
  25

  	
   

  	
  (167,225.45

  	
  )

  	
   

  	
   

  
	
   

  	
  26

  	
   

  	
  (167,922.22

  	
  )

  	
   

  	
   

  
	
   

  	
  27

  	
   

  	
  (168,621.90

  	
  )

  	
   

  	
   

  
	
   

  	
  28

  	
   

  	
  (169,324.49

  	
  )

  	
   

  	
   

  
	
   

  	
  29

  	
   

  	
  (170,030.01

  	
  )

  	
   

  	
   

  
	
   

  	
  30

  	
   

  	
  (170,738.46

  	
  )

  	
   

  	
   

  
	
   

  	
  31

  	
   

  	
  (171,449.87

  	
  )

  	
   

  	
   

  
	
   

  	
  32

  	
   

  	
  (172,164.25

  	
  )

  	
   

  	
   

  
	
   

  	
  33

  	
   

  	
  (172,881.60

  	
  )

  	
   

  	
   

  
	
   

  	
  34

  	
   

  	
  (173,601.94

  	
  )

  	
   

  	
   

  
	
   

  	
  35

  	
   

  	
  (174,325.28

  	
  )

  	
   

  	
   

  
	
   

  	
  36

  	
   

  	
  (176,670.04

  	
  )

  	
   

  	
   

  

 

18

 

Breakdown of Capex

payments

 

	
   

  	
  Variables

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Principal

  	
   

  	
  200,811,888.25

  	
   

  	
   

  
	
   

  	
  Term (Years)*

  	
   

  	
  20

  	
   

  	
   

  
	
   

  	
  Repayments Per Year

  	
   

  	
  12

  	
   

  	
   

  
	
   

  	
  Calculation Rate

  	
   

  	
  5.00

  	
  %

  	
   

  

 

*
25 year Senior Loan Principal Amortization less 20 year Senior Loan Principal
Amortization

 

19Exhibit 10.20

 

Connecticut
General Life Insurance Company

Loan No.                 

Master Loan Agreement

 

MASTER LOAN AGREEMENT

 

THIS MASTER LOAN AGREEMENT
(the “Loan Agreement”) is executed and delivered as of July 9, 2010
by and between STAG GI INVESTMENTS HOLDINGS,
LLC, a Delaware limited liability company (“Prime Borrower”
and, together with the Site Borrowers, as defined below, collectively and
individually referred to as the “Borrower” or “Borrowers”); and CONNECTICUT GENERAL LIFE INSURANCE COMPANY,
a Connecticut corporation (together with its successors, affiliates, nominees,
subsidiaries, investors, participants and assignees, “Lender”).

 

Recitals

 

A.            Lender and STAG
Capital Partners, LLC, a Delaware limited liability company (“STAG Capital”),
are parties to a Letter of Intent dated April 13, 2010 (the “Commitment”),
pursuant to which, inter alia,
Lender will make a mortgage loan to Prime Borrower and Site Borrowers in the
maximum aggregate original principal amount of Sixty-Three Million and No/100 Dollars
($63,000,000) (the “Loan” or the “Portfolio Loan”).

 

B.            Prime Borrower
is wholly owned by STAG GI Investments, LLC, a Delaware limited liability
company (“STAG GI Investments”). 
Prime Borrower intends to own all of the membership interests in one or
more special purposes entities (each, a “Site Borrower” and,
collectively, the “Site Borrowers”) created to acquire various parcels
of real property and all improvements thereon and all rights and appurtenances
thereto (each a “Site” and, collectively, the “Portfolio Properties”).

 

C.            The Portfolio
Loan will be evidenced and secured by (i) one or more promissory notes by
Prime Borrower and one or more Site Borrowers (as the same may be amended,
modified, substituted or supplemented from time to time, collectively and
individually referred to as the “Notes” or the “Portfolio Notes”),
(ii) a mortgage, deed of trust, or indemnity deed of trust, assignment of
leases, rents and contracts, security agreement and fixture filing that
encumbers a Site (one from the applicable Site Borrower for each Site, each, a “Portfolio
Mortgage” and collectively, the “Portfolio Mortgages,” as the same
may be amended, modified, substituted or supplemented from time to time) and
other items of collateral, and (iii) such other security agreements, loan
agreements, disbursement agreements, supplemental agreements, environmental
indemnity agreements, guaranties, assignments (both present and collateral) and
other instruments of indebtedness or security, including, without limitation,
those set forth on Exhibit B
hereto (including the Notes, the Portfolio Mortgages and this Loan Agreement,
as the same may be amended, modified, substituted or supplemented from time to
time, the “Loan Documents”).  All
indebtedness and obligations hereunder and under the other Loan Documents are
collectively referred to as the “Indebtedness.”

 

 

D.            Lender and
Borrowers are entering into this Loan Agreement to reflect the agreements of
Lender and Borrowers regarding the terms of the Loan.

 

Agreements

 

NOW
THEREFORE, for and in consideration of the foregoing recitals and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lender and Borrowers, jointly and severally, hereby agree as
follows:

 

1.             Incorporation of
Recitals; Defined Terms.  The
recitals are hereby incorporated into this Agreement.  Initially capitalized terms used but not
otherwise defined in this Loan Agreement have the same meanings given them in
the Loan Documents.

 

2.             Initial Advance
and Additional Advances.

 

2.1          Initial Advance.

 

(a)           Subject to
fulfilling the requirements of this Loan Agreement, Lender has agreed to
advance to Prime Borrower and one or more to-be-determined Site Borrowers (the “Initial
Site Borrower(s)”), and Prime Borrower has agreed to accept, and shall
cause the Initial Site Borrower(s) to accept, an initial advance of the
Loan proceeds in the original principal amount equal to sixty-two and one-half
percent (62.5%) of (i) the gross purchase price of the Sites to be
purchased by the Initial Site Borrower(s) (the “Initial Site(s)”),
to be set forth on Exhibit H
hereto, plus (ii) all amounts due to Lender or its attorneys or Affiliates
(as defined below) with respect to the closing and funding of the initial
advance of the Loan, plus (iii) the fees payable to STAG Capital or STAG
Capital Partners III, LLC (“STAG III”) or their respective
Affiliates or successors in connection with the acquisition of the Initial Site(s) in
accordance with the Limited Liability Company Operating Agreement of STAG GI
Investments dated as of July 6, 2010, plus (iv) the fees payable to
Holiday, Fenoglio, Fowler, L.P. in connection with the initial advance of the
Loan, plus (v) all other reasonable third party costs incurred in
connection with the underwriting and acquisition of the Initial Site(s) including,
without limitation, for the Title Commitment, Title Policy and Survey (as those
terms are defined below) expenses, brokerage fees, recording fees and transfer
taxes, mortgage recording fees, legal fees and disbursements, the cost of
obtaining the Zoning Materials and Environmental and Engineering Reports, and
the cost of the Searches, Tenant Bankruptcy Searches (as those terms are
defined below) and similar searches and reports (the “Initial Advance”).  Borrower and Lender shall update Exhibit H simultaneously with
the acquisition of the Initial Site(s) in accordance with the terms of
this Loan Agreement.

 

As
used in this Loan Agreement, “Affiliate(s)” means a person or an entity
that controls, is controlled by, or is under common control with the person or
entity with respect to which the determination is to be made, and the terms “control,”
“controls,” and “under common control with,” mean the direct or indirect power
to direct or cause the direction of the management and policies of the company,
partnership, limited liability company, trust or entity with respect to which
the determination is to be made, whether through the ownership of voting
securities, by contract or otherwise.

 

2

 

(b)           Prime Borrower
may seek to obtain the Initial Advance hereunder by identifying the Initial
Site(s) to secure the Loan.  Prime
Borrower shall deliver to Lender preliminary underwriting materials in support
thereof (the “Preliminary Underwriting Materials”).  Lender shall have the right to review,
underwrite, accept or reject any proposed Initial Site(s) and the Initial
Advance, in accordance with its then current underwriting standards, which will
be applied in Lender’s sole and absolute discretion, including Lender’s right
to review such proposed Initial Site(s) and Initial Advance in accordance
with Lender’s customary application and approval process.  Without limiting the generality of the
foregoing, the Preliminary Underwriting Materials shall contain the items
identified in Section 2.1(c)(i) below, together with a “Transaction
Summary,” describing the primary salient features of the Initial Site(s) and
the Initial Advance.  Prime Borrower
shall reimburse Lender for all actual costs and expenses incurred in connection
with the proposed Initial Site(s) and the Initial Advance, whether or not
the Initial Advance is ever made, including, without limitation, consultant’s
fees for the Environmental and Engineering Reports, the costs of the Title
Commitments and Surveys and legal fees of in-house and outside counsel.

 

Lender shall notify Prime
Borrower in writing within fourteen (14) days following receipt of the
Preliminary Underwriting Materials whether or not the Initial Site(s), or any
of them, and Initial Advance are approved. 
In all events, as of the Initial Advance (a) the loan-to-value
ratio of the Initial Site(s) as reasonably determined by Lender must be
less than or equal to sixty-two and one-half percent (62.5%), (b) the Debt
Coverage Ratio (as defined below) for each Initial Site must be at least 1.50
times, (c) each Initial Site must be an industrial property, primarily
used for warehouse/distribution, manufacturing and flex/R&D purposes, (d) each
Initial Site must be located in a primary or secondary market, as reasonably
determined by Lender, and (e) each Initial Site must be a Class A or Class B
property, as reasonably determined by Lender.

 

If
approved by Lender as provided above, Lender shall notify Prime Borrower in
writing of its agreement regarding the Initial Site(s) and Initial
Advance, whereupon Lender shall be obligated to make the Initial Advance
pursuant to this Loan Agreement so long as the requirements of Section 2.1(c) below
are satisfied.

 

(c)           Prior to making
the Initial Advance, and as a condition of Borrower’s right to receive any Loan
proceeds as contemplated by this Agreement, the following conditions shall be
satisfied to Lender’s satisfaction:

 

(i)            Borrower shall have
delivered to Lender true, correct and complete copies of each fully-executed
Lease (as hereinafter defined) affecting each Initial Site, together with a
current rent roll and an abstract of each Lease prepared by Borrower, which
Leases shall be in form and substance reasonably satisfactory to Lender.

 

(ii)           Borrower shall have
delivered to Lender a Lease Estoppel Certificate from each tenant under each
Lease of each Initial Site, substantially in the form attached hereto as Exhibit C (unless the Lender shall
expressly agree, in Lender’s sole discretion, to accept a Lease Estoppel
Certificate from Borrower for any of the Initial Site(s) in a form that
differs from the form 

 

3

 

attached
hereto as Exhibit C),
and otherwise in form and substance reasonably satisfactory to Lender (a “Tenant
Estoppel”).

 

(iii)          Borrower shall have
delivered to Lender a Subordination Non-Disturbance and Attornment Agreement
from each tenant under each Lease of each Initial Site, substantially in the
form attached hereto as Exhibit D,
and otherwise in form and substance reasonably satisfactory to Lender (a “SNDA”).

 

(iv)          Borrower shall have
delivered to Lender a true, correct and complete copy of the outstanding
Purchase and Sale Agreement for each Initial Site.

 

(v)           Borrower shall have
delivered to Lender true, correct and complete copies of the organizational
documents of each Site Borrower, together with evidence of the authority of
Prime Borrower and each Site Borrower to execute and deliver the Loan Documents
and perform its obligations thereunder, all in form and substance reasonably
satisfactory to Lender.

 

(vi)          Borrower shall have
delivered a title commitment for a mortgagee’s title insurance policy in form
and substance acceptable to Lender (the “Title Commitment”), issued by a
title insurance company or companies acceptable to Lender (the “Title
Company”), with the Title Company’s assurance that all of the requirements
for the issuance of the mortgagee’s title insurance policy contemplated thereby
have been satisfied and that the Title Company is unconditionally and
irrevocably prepared to issue such policy to Lender, with such endorsements,
reinsurance and/or co-insurance as Lender may reasonably require, insuring the
first priority lien of the Portfolio Mortgage on each Initial Site Borrower’s
interests in its applicable Initial Site, free from all liens and encumbrances
other than those expressly approved by Lender and without exception for
(A) filed or unfiled mechanics’ liens, (B) survey matters, (C) rights
of parties in possession (except for tenants under Leases as specifically noted
on the Title Commitment), (D) environmental liens, and (E) any other
matters of any kind or nature whatsoever other than those expressly approved by
Lender and the Loan Documents (the “Title Policy”).

 

(vii)         Borrower shall have
delivered to Lender a current instrument survey of each Initial Site,
acceptable in form and content to Lender and the Title Company, prepared in
accordance with the requirements set forth in EXHIBIT E attached hereto (the “Survey”), and
a certificate substantially in the form of EXHIBIT F
attached hereto (the “Surveyor’s Certificate”), prepared and signed by a
surveyor, acceptable to Lender and the Title Company, licensed to do business
in the State/Commonwealth of the applicable Initial Site with his or her seal
affixed thereto.  The Survey must show
that all buildings and improvements are within lot and building lines and must
locate all above or below ground easements, improvements, appurtenances,
utilities and rights of way, and ingress and egress, number 

 

4

 

and
size of parking spaces and otherwise contain information outlined on EXHIBIT E attached hereto.

 

(viii)        Borrower shall have
delivered to Lender such evidence as Lender may reasonably require that all
outstanding Impositions (as hereinafter defined) pertaining to each Initial
Site which are due and payable as of the date hereof have been paid in full.

 

(ix)          Borrower shall have
delivered evidence, reasonably acceptable to Lender, that Borrower and each
Initial Site are not subject to any federal or state tax liens, outstanding
judgments or bankruptcy matters (collectively, the “Searches”) and that
the tenants under the Leases are not subject to any bankruptcy matters (the “Tenant
Bankruptcy Searches”), which, in the case of the Tenant Bankruptcy
Searches, may be satisfied by a representation to that effect from the tenant
in its Tenant Estoppel.

 

(x)           Borrower shall have
delivered to Lender engineering, environmental, asbestos and other reports
reasonably requested by Lender, in form and content satisfactory to the Lender,
regarding the physical and environmental condition of each Initial Site
(collectively, the “Environmental and Engineering Reports”).

 

(xi)          Borrower shall have
delivered to Lender a report prepared by Planning and Zoning Resources, Inc.
(a “PZR Report”) regarding the zoning for each Initial Site, in form and
substance reasonably acceptable to Lender, together with copies of certificates
of occupancy (if reasonably available) and zoning certificates from the local
jurisdiction of the applicable Initial Site (if reasonably available) (together
with the PZR Report, the “Zoning Materials”).

 

(xii)         Borrower shall have
delivered to Lender insurance policies and/or certificates of insurance
required pursuant to the terms and provisions of this Loan Agreement.

 

(xiii)        Borrower shall have
delivered to Lender any Management Agreements (as hereinafter defined),
together with a written subordination of the Management Agreements by the
managers thereunder to the terms of the Loan Documents, all in form and
substance satisfactory to Lender.

 

(xiv)        Borrower shall have
delivered financial statements (A) of Borrower, covering at least the
previous three (3) calendar years in reasonable detail, sworn by Borrower
to be true and complete, in form and substance acceptable to Lender, and
(B) of each Initial Site for the previous three (3) calendar years,
or such shorter time as may be reasonably available to Borrower, in reasonable
detail, sworn by Borrower, to the best of Borrower’s knowledge, to be true and
complete in all material respects, in form and substance acceptable to Lender.

 

5

 

(xv)         Borrower shall have
delivered such evidence as Lender may require as to the satisfaction of such of
the terms and conditions of the Commitment, this Loan Agreement and the other
Loan Documents as may by their nature be satisfied prior to the making of the
Initial Advance.

 

(xvi)        Borrower shall have fully
executed and delivered the Loan Documents, in form and substance satisfactory
to Lender.

 

(xvii)       Borrower shall have
delivered opinions, in form and substance reasonably acceptable to Lender,
subject to customary limitations and qualifications in opinions for
transactions of this type, from Borrower’s counsel and from local counsel for
each Initial Site, regarding (A) the due execution, authority and
enforceability of the Loan Documents, (B) the compliance of the Loan Documents
with applicable usury laws, and (C) such other matters as Lender may
reasonably require (collectively the “Opinions”), substantially in the
forms attached hereto as Exhibit G.

 

(xviii)      Borrower shall have
delivered such evidence as Lender may reasonably require that (A) there
has been no material adverse change in (I) the financial position of
Borrower or any Constituent Owner (as hereinafter defined), (II) each
Initial Site, (III) the Rents, (IV) the Leases, (V) any other
material features or characteristics of the transaction or due diligence
materials and documentation submitted to Lender by or on behalf of the Borrower
from that which existed on the date Borrower submitted the Commitment to the
Lender, and/or (B) Borrower is not involved in any bankruptcy,
reorganization or insolvency proceeding, or in any criminal, government
receivership or FDIC proceeding, investigation or review (each, a “Material
Adverse Change”).

 

(xix)        No Event of Default, nor any
event which, with the giving of notice or passage of time, or both, would
constitute an Event of Default, shall exist hereunder or under any other Loan
Document.

 

(xx)         All of the representations
and warranties made hereunder and under the other Loan Documents shall be true
and correct in all material respects.

 

(xxi)        Such other conditions as
Lender may reasonably require.

 

(d)           All conditions
for Lender’s making the Initial Advance must be satisfied by Borrowers within
sixty (60) days after the date hereof, or Lender’s obligations under this Loan
Agreement shall terminate, Lender shall not be required to make the Initial
Advance or any Additional Advances under the Loan and this Loan Agreement and
all other Loan Documents shall terminate and be of no further force or effect,
except for such obligations of Borrower as expressly survive the termination of
the Loan Documents.

 

6

 

2.2         Additional Advances.

 

(a)           Prime Borrower,
together with each Site Borrower that is the owner of an Additional Portfolio
Property (as hereinafter defined), may elect to obtain one or more additional
advances of the Loan proceeds prior to the expiration of the Advancement Period
(as hereinafter defined) in the maximum aggregate original principal amount as
of the date hereof of up to the difference of (i) Sixty-Three Million and
No/100 Dollars ($63,000,000) less (ii) the amount of the Initial Advance
(individually and collectively, the “Additional Advances”) under the
terms and provisions provided herein. 
The amount of the Additional Advances will be equal to sixty-two and
one-half percent (62.5%) of (a) the gross purchase price of the applicable
Additional Portfolio Property, to be set forth on Exhibit H hereto, plus (b) all amounts due to
Lender or its attorneys or Affiliates (as defined below) with respect to the
closing and funding of the applicable Additional Advance, plus (c) the
fees payable to STAG Capital or STAG III or their respective Affiliates or
successors in connection with the acquisition of the applicable Additional
Portfolio Property in accordance with the Limited Liability Company Operating
Agreement of STAG GI Investments dated as of July 6, 2010, plus
(d) the fees payable to Holiday, Fenoglio, Fowler, L.P. in connection with
the applicable Additional Advance, plus (e) all other reasonable third
party costs incurred in connection with the underwriting and acquisition of the
applicable Additional Portfolio Property including, without limitation, for the
Title Commitment, Title Policy and Survey expenses, brokerage fees, recording
fees and transfer taxes, mortgage recording fees, legal fees and disbursements,
the cost of obtaining the Zoning Materials and Environmental and Engineering
Reports, and the cost of the Searches, Tenant Bankruptcy Searches and similar
searches and reports.  Borrower and
Lender shall update Exhibit H
simultaneously with the acquisition of each Additional Portfolio Property in
accordance with the terms of this Loan Agreement.

 

(b)           Prime Borrower
may seek to obtain Additional Advances hereunder by identifying additional Site(s) (each,
an “Additional Portfolio Property,” which also constitute Sites and
Portfolio Properties hereunder) to secure the Loan.  Prime Borrower shall deliver to Lender the
Preliminary Underwriting Materials in support thereof.  Lender shall have the right to review,
underwrite, accept or reject any proposed Additional Portfolio Properties and
Additional Advances, in accordance with its then current underwriting
standards, which will be applied in Lender’s sole and absolute discretion,
including Lender’s right to review such proposed Additional Portfolio
Properties and Additional Advances in accordance with Lender’s customary
application and approval process. 
Without limiting the generality of the foregoing, the Preliminary Underwriting
Materials shall contain the items identified in Section 2.2(c)(i) below,
together with a “Transaction Summary,” describing the primary salient features
of the Additional Portfolio Property and Additional Advances.  Prime Borrower shall reimburse Lender for all
actual costs and expenses incurred in connection with any proposed Additional
Portfolio Properties and Additional Advances, whether or not the Additional
Advance is ever made, including, without limitation, consultant’s fees for the
Environmental and Engineering Reports, the costs of the Title Commitments and
Surveys and legal fees of in-house and outside counsel.

 

Lender shall notify Prime
Borrower in writing within fourteen (14) days following receipt of the
Preliminary Underwriting Materials whether or not the Additional Portfolio
Properties and Additional Advances are approved.  In all events, as of each Additional Advance
(a) the loan-to-value ratio of the Portfolio Properties (including the Additional
Portfolio Properties) as 

 

7

 

reasonably determined by
Lender must be less than or equal to sixty-two and one-half percent (62.5%),
(b) the Debt Coverage Ratio (as defined below) must be at least 1.50
times, (c) the Portfolio Properties (including the Additional Portfolio
Properties) must be diversified with respect to geography, tenancy and
industry, as reasonably determined by Lender, (d) the Portfolio Properties
(including the Additional Portfolio Properties) must be industrial properties, primarily
used for warehouse/distribution, manufacturing and flex/R&D purposes, (e) the
Portfolio Properties must be located in primary and secondary markets, as
reasonably determined by Lender, and (f) the Portfolio Properties must be Class A
or Class B properties, as reasonably determined by Lender.

 

If approved by Lender as
provided above, Lender shall notify Prime Borrower in writing of its agreement
regarding the Additional Portfolio Properties and Additional Advances,
whereupon Lender shall be obligated to make the Additional Advance(s) pursuant
to this Loan Agreement so long as the requirements of Section 2.2(c) below
are satisfied.  All of the terms and
conditions of this Loan Agreement and all other Loan Documents shall pertain to
the Site Borrowers, the Additional Notes (as defined below), the Additional
Portfolio Mortgages (as hereinafter defined) and the Additional Portfolio
Properties to the same extent as if part of the Initial Advance.

 

(c)           Prior to making
any Additional Advances, and as a condition of Borrower’s right to receive any
Loan proceeds beyond the Initial Advance as contemplated by this Agreement, the
following conditions shall be satisfied to Lender’s satisfaction with respect
to the Additional Portfolio Properties:

 

(i)            Borrower shall have
delivered to Lender true, correct and complete copies of each fully-executed
Lease (as hereinafter defined) affecting the Additional Portfolio Properties,
together with a current rent roll and an abstract of each Lease prepared by
Borrower, which Leases shall be in form and substance reasonably satisfactory
to Lender.

 

(ii)           Borrower shall have
delivered to Lender a Tenant Estoppel from tenants occupying not less than
seventy-five percent (75%) of the leasable area of the Additional Portfolio
Properties.

 

(iii)          Borrower shall have
delivered to Lender a SNDA from tenants occupying not less than seventy-five
percent (75%) of the leasable area of the Additional Portfolio Properties.

 

(iv)          Borrower shall have
delivered to Lender true, correct and complete copies of each Purchase and Sale
Agreement for each Additional Portfolio Property.

 

(v)           Borrower shall have
delivered to Lender true, correct and complete copies of the organizational
documents of each Site Borrower, together with evidence of the authority of
each Borrower to execute and deliver the Additional Loan Documents (as
hereinafter defined) and perform its obligations thereunder, all in form and
substance reasonably satisfactory to Lender.

 

8

 

(vi)          Borrower shall have
delivered a Title Commitment issued by the Title Company, with the Title
Company’s assurance that all of the requirements for the issuance of the
mortgagee’s title insurance policy contemplated thereby have been satisfied and
that the Title Company is unconditionally and irrevocably prepared to issue
such policy to Lender, with such endorsements, reinsurance and/or co-insurance
as Lender may reasonably require, insuring the first priority lien of the
Additional Portfolio Mortgages on the Site Borrowers’ interest in the
Additional Portfolio Properties, free from all liens and encumbrances other
than those expressly approved by Lender and without exception for
(A) filed or unfiled mechanics’ liens, (B) survey matters,
(C) rights of parties in possession (except for tenants under Leases as
specifically noted on the Title Commitment), (D) environmental liens, and (E) any
other matters of any kind or nature whatsoever other than those expressly
approved by Lender and the Loan Documents; together with any endorsements to
the existing Title Policy requested by Lender to evidence the Additional
Advance and the Additional Portfolio Mortgages.

 

(vii)         Borrower shall have
delivered to Lender a Survey of each Additional Portfolio Property and Surveyor’s
Certificate with respect thereto, prepared and signed by a surveyor, acceptable
to Lender and the Title Company, licensed to do business in the state of the
respective Additional Portfolio Property with his or her seal affixed thereto.

 

(viii)        Borrower shall have
delivered to Lender such evidence as Lender may reasonably require that all
outstanding Impositions (as hereinafter defined) pertaining to the Additional
Portfolio Properties which are due and payable as of the date of the Additional
Advances have been paid in full.

 

(ix)          Borrower shall have
delivered updated Searches for the Prime Borrower and the Site Borrower that
will obtain the applicable Additional Advance (but not for the other Site
Borrowers); provided, however, that (i) such Searches shall not be
required (unless Lender otherwise so reasonably requests) for any Borrower as
to which Lender has received and approved Searches within the last calendar
quarter, and (ii) such Searches shall not be required with respect to any
Site Borrower created within thirty (30) days of the closing of the Additional
Advance.  Borrower shall have also
delivered prior to each Additional Advance the Tenant Bankruptcy Searches
related to the Additional Portfolio Property being acquired with the proceeds
of the Additional Advance; provided, however, that such Bankruptcy Searches
shall not be required with respect to any tenant that makes an appropriate
representation in its Tenant Estoppel.

 

(x)           Borrower shall have
delivered to Lender the Environmental and Engineering Reports with respect to
the Additional Portfolio Properties. 
Lender will use reasonable efforts to use Borrower’s existing
Environmental and Engineering Reports in connection with the Additional
Advances.

 

9

 

(xi)          Borrower shall have
delivered to Lender the Zoning Materials with respect to the Additional
Portfolio Properties.

 

(xii)         Borrower shall have
delivered to Lender insurance policies and/or certificates of insurance
required pursuant to the terms and provisions of this Loan Agreement.

 

(xiii)        Borrower shall have
delivered to Lender any Management Agreements (as hereinafter defined),
together with a written subordination of the Management Agreements by the
managers thereunder to the terms of the Loan Documents, all in form and
substance satisfactory to Lender.

 

(xiv)        Borrower shall have
delivered financial statements for each Additional Portfolio Property for the
previous three (3) calendar years, or such shorter time as may be
reasonably available to Borrower, in reasonable detail, sworn by Borrower, to
the best of Borrower’s knowledge, to be true and complete in all material
respects, in form and substance acceptable to Lender.

 

(xv)         Borrower shall have
delivered such evidence as Lender may require as to the satisfaction of such of
the terms and conditions of the Commitment, this Loan Agreement and of the
other Loan Documents as may by their nature be satisfied prior to the making of
the Additional Advance.

 

(xvi)        Borrower shall have fully
executed and delivered the Additional Loan Documents, in form and substance
satisfactory to Lender.

 

(xvii)       Borrower shall have
delivered the Opinions with respect to the Additional Loan Documents.

 

(xviii)      Borrower shall have
delivered such evidence as Lender may reasonably require that there has been no
Material Adverse Change since the date of the Preliminary Underwriting
Materials.

 

(xix)        No Event of Default, nor any
event which, with the giving of notice or passage of time, or both, would
constitute an Event of Default, shall exist hereunder or under any other Loan
Document.

 

(xx)         All of the representations
and warranties made hereunder and under the other Loan Documents shall continue
to be true and correct in all material respects (except to the extent modified
consistent with the terms of the Loan Documents).

 

(xxi)        The Additional Advance must
occur no later than twelve (12) months from the date hereof (the “Advancement
Period”).

 

(xxii)       Such other conditions as
Lender may reasonably require.

 

10

 

 

2.3          Advances, Generally.

 

(a)           Without at any
time waiving any of Lender’s rights hereunder, Lender shall have the right to
make advances of Loan proceeds hereunder without the satisfaction of each and
every condition precedent to Lender’s obligation to make such advance, and
Borrower agrees to accept such advance as Lender may elect to make in
connection with the acquisition of an Additional Portfolio Property.

 

(b)           The Initial
Advance and the Additional Advances shall each be evidenced by one or more Portfolio
Notes, in substantially the form attached hereto as Exhibit I, of even date with the
Initial Advance or Additional Advances, as applicable, executed by Prime
Borrower and each Site Borrower, each of which shall mature at the same time as
the Note evidencing the Initial Advance (the “Initial Note(s)”).  The interest rate (the “Interest Rate”)
for the Initial Notes shall be six and 50/100 percent (6.50%) per annum.  The Interest Rate for any Additional Note
executed and delivered within six (6) months after the earlier to occur of
(i) the date that is sixty (60) days after the date hereof and
(ii) the date of the Initial Advance (the “Initial Interest Rate Period”)
shall equal the Interest Rate set forth in the Initial Notes.  Thereafter, for each Additional Advance made
within the immediately succeeding six (6) month period following the
expiration of the Initial Interest Rate Period (the “Additional Interest
Rate Period”), the Interest Rate on such Additional Notes shall be equal to
the 7-Year Treasury Yield (hereinafter defined) plus a spread offered to
borrowers of substantially similar reputation and experience as the Prime
Borrower for a loan secured by properties substantially similar in quality and
geographical diversification as the Portfolio Properties (including the
Additional Portfolio Properties), such Interest Rate to be determined within
thirty (30) days prior to the expiration of the Initial Interest Rate Period;
provided, however, that the Interest Rate shall never be less than six and 50/100
percent (6.50%) per annum.  Lender agrees
to provide prompt written notice to Prime Borrower of the Interest Rate for the
Additional Interest Rate Period.  In no
event will Lender receive interest in excess of that allowed by applicable
law.  As used herein, the term “Additional
Notes” means any Portfolio Note(s) evidencing the applicable
Additional Advance(s).

 

Notwithstanding the
foregoing, if after twelve months from the date of the Initial Advance the
aggregate outstanding principal balance of the Loan is less than Forty-Five
Million and No/100 Dollars ($45,000,000), then commencing on the first (1st) day of the thirteenth (13th) month after the Initial
Advance (the “Interest Rate Adjustment Date”), the Interest Rate with
respect to the entire outstanding principal balance of the Loan shall increase
automatically on the Interest Rate Adjustment Date to the greater of
(a) fifty (50) basis points more than the current Interest Rate, or
(b) seven percent (7.00%) per annum.

 

The Portfolio Notes shall
provide for monthly installments of interest only until the date six
(6) months after the date of the Initial Advance, and thereafter monthly
installments of interest and principal (based upon a 30-year amortization
schedule from the date of such principal payments), which shall be due and
payable on each Monthly Payment Date (as defined in the Initial Notes).

 

As used herein, the “7-Year
Treasury Yield” will be determined by reference to the end of day yields on
U.S. Treasuries having a 7 year maturity date and reported in the federal
reserve Statistical Release H.15
(http://www.federalreserve.gov/releases/H15/update/), or in the event 

 

11

 

the website is discontinued
or otherwise generally unavailable, any comparable electronic rate index that
is readily available and verifiable to Lender, for the fifth (5th) Business Day prior to the
Additional Advance.

 

Subject
to the provisions of Section 4(b) hereof, the Initial Notes shall be
secured by one or more first priority (a) mortgages, deeds of trust, or
indemnity deeds of trust, assignments of leases, rents and contracts, security
agreements and fixture filings, in the full amount of the Loan that encumber
each Initial Site, substantially in the form attached hereto as Exhibit J (the “Initial
Portfolio Mortgage(s)”) and (b) assignments of rents and leases that
encumber each Initial Site, substantially in the form attached hereto as Exhibit O.  All other Loan Documents shall be amended, as
necessary, to reflect the Initial Advances, the Initial Site Borrowers and the
Initial Site, to the extent necessary in Lender’s reasonable discretion,
including, without limitation, pursuant to an Omnibus Amendment to Loan
Documents substantially in the form attached hereto as Exhibit K (as the same may be
amended, modified, substituted or supplemented from time to time, the “Omnibus
Amendment”).  The documents set forth
above in this paragraph shall constitute part of the Loan Documents hereunder.

 

Subject
to the provisions of Section 4(b) hereof, the Additional Notes shall
be secured by first priority (a) mortgages, deeds of trust, or indemnity
deeds of trust, assignments of leases, rents and contracts, security agreements
and fixture filings, each in the full amount of the Loan (as the same may be
amended, modified, substituted or supplemented from time to time, each, an “Additional
Portfolio Mortgage” and collectively part of the Portfolio Mortgages and
the Loan Documents) that encumber the Additional Portfolio Properties, substantially
in the forms attached hereto as Exhibit J
and (b) assignments of rents and leases (as the same may be amended,
modified, substituted or supplemented from time to time, each, an “Additional
Assignment” and collectively part of the Loan Documents) that encumber the
Additional Portfolio Properties, substantially in the forms attached hereto as Exhibit O.  All other Loan Documents shall be amended, as
necessary, to reflect the Additional Advances, the Site Borrowers and the
Additional Portfolio Properties, to the extent necessary in Lender’s reasonable
discretion, including, without limitation, pursuant to an Omnibus
Amendment.  The Additional Notes, the
Additional Portfolio Mortgages, the Additional Assignments, the Omnibus
Amendment and the amendments to the other Loan Documents as the same may be
amended, modified, substituted or supplemented from time to time, are
collectively called the “Additional Loan Documents,” which shall
constitute part of the Loan Documents hereunder.

 

(c)           Commencing with
the Initial Advance and continuing with each Additional Advance thereafter
made, Borrowers shall deliver to Lender a rent roll that accurately reflects in
all material respects the Leases and income from the Portfolio Properties as of
the date indicated thereon, which rent roll shall be attached hereto at the
time of such advance as Exhibit N.

 

(d)           Commencing with
the Initial Advance and continuing with each Additional Advance thereafter
made, Prime Borrower will use good faith efforts to deliver Preliminary Underwriting
Materials for multiple Portfolio Properties with each requested advance to
streamline Lender’s application and approval process described herein.

 

12

 

3.             Allocation of
Loan Amount.  The original
principal amount of the Loan advanced shall be allocated among the Sites as
shown in the table attached as Exhibit L.  The amount allocated to each Site is referred
to as the “Allocated Loan Amount.”

 

Allocated
Loan Amounts shall be reduced on a Site-specific basis to reflect any release
of a Site in accordance with Section 20 below, and the amount by which any
Release Prepayment exceeds the applicable Allocated Loan Amount shall be
allocated as provided for in Section 20. 
Allocated Loan Amounts also shall be reduced on a Site-specific basis to
reflect the application of any casualty or condemnation proceeds with respect
to such Site or any other partial prepayment made with respect to such Site in
accordance with the terms of the Loan Documents.  All other payments of any portion of the
Principal Indebtedness (as defined in the Notes) shall be applied against the
Allocated Loan Amounts in the manner determined by Lender in its reasonable
discretion and shall cause a re-calculation of debt service payments based upon
the reduced Loan balance, the remaining amortization schedule and the Interest
Rate.  No Site shall be released from the
lien of the Portfolio Mortgages until the applicable Allocated Loan Amount has
been paid in full.

 

4.             Payment of
Indebtedness. 
(a) Borrower will pay the principal indebtedness and interest
thereon in accordance with the provisions of the Notes and all prepayment
charges, late charges and fees required thereunder, and all extensions, renewals,
modifications, amendments and replacements thereof, and will keep and perform
all of the covenants, promises and agreements, and pay all sums provided in
(i) each of the Notes or any other promissory note or notes at any time
hereafter issued to evidence the Indebtedness, (ii) the Portfolio
Mortgages, (iii) this Loan Agreement, and (iv) any and all other Loan
Documents, all in the manner herein or therein set forth.  Each of the Borrowers hereunder shall be
fully liable for such payment and performance, and such liability shall be
joint and several.

 

(b)           Each Borrower
acknowledges and agrees that each of the Portfolio Properties (including,
without limitation, any Additional Portfolio Properties) is granted as security
for the entire Loan (including, without limitation, the Initial Advance and all
Additional Advances) and shall be deemed to be additional collateral securing
the complete payment, performance, observance and fulfillment of all of the
terms, covenants, conditions and warranties of this Loan Agreement and the
other Loan Documents.  Notwithstanding
the foregoing or anything else to the contrary in this Agreement or any other
Loan Document, however, to the extent any state imposes a mortgage tax,
transfer tax or other fee in an amount other than a nominal amount
(collectively, a “Mortgage Tax”) on a Portfolio Mortgage based upon the
full amount of the Loan, Lender agrees that such Portfolio Mortgage shall only
secure 125% of the Allocated Loan Amount attributable to the Site, and Lender
shall make such other adjustments to the Amended Loan Documents as may be
reasonable and/or necessary, in Lender’s reasonable opinion, to reduce the
burden of the Mortgage Tax on Borrower.

 

5.             Usury.  It is hereby expressly agreed that Borrowers
and Lender intend for the Loan to comply in all respects with applicable
federal and state law governing the maximum rate of interest and other charges
that may be charged or received in connection with a commercial loan.  Notwithstanding the foregoing, if from any
circumstances whatsoever fulfillment of any provision of the Notes, the
Portfolio Mortgages, this Loan Agreement or any other Loan Documents, at the
time performance of such provision shall be due, shall involve transcending 

 

13

 

the limit of validity presently
prescribed by any applicable usury statute or any other law, with regard to
obligations of like character and amount, then ipso  facto the
obligation to be fulfilled shall be reduced to the limit of such validity, so
that in no event shall any exaction be possible under the Loan Documents that
is in excess of the limit of such validity. 
In no event shall Borrower be bound to pay for the use, forbearance or
detention of the money loaned pursuant to the Loan Documents, interest of more
than the current legal limit; the right to demand any such excess being hereby
expressly waived by Lender and Lender further agrees that it is Lender’s
express intent that all excess amounts taken if usury has been charged or
collected shall be refunded to Borrower with interest, or credited to the
outstanding principal Indebtedness, to the extent as provided under applicable
law, but so as to permit the recovery of the fullest amount otherwise called
for hereunder.

 

6.             Impositions.  Borrower shall pay or cause to be paid, not
later than the last day on which the same may be paid without penalty or
interest, all real estate taxes, sewer rents, water charges, fees and other
payments to be made to any local, State or federal department, board or agency,
or any other agency or governmental board or entity having jurisdiction over
the Portfolio Properties (a “Governmental Authority”) in connection with
the Real Property (as defined in the Portfolio Mortgages), and all other
municipal and governmental assessments, rates, charges, impositions and liens
(collectively hereinafter referred to as “Impositions”) which now or
hereafter are imposed by law upon the Portfolio Properties.  If any Imposition is not paid within the time
hereinabove specified, Lender shall have the right to pay the same, together
with any penalty and interest thereon, and the amount or amounts so paid or
advanced shall forthwith be payable by Borrower to Lender and shall be secured
by the lien of the Portfolio Mortgages. 
Notwithstanding the foregoing, Borrower may in good faith contest, at
its own cost and expense, by proper legal proceedings, the validity or amount
of any Imposition, on the condition that Borrower first shall deposit with
Lender, as security for the payment of such contested item, an amount equal to
the contested item plus all penalties and interest that would be payable if
Borrower is ultimately required to pay such contested item, and on the further
condition that no amount so contested may remain unpaid for such length of time
as shall permit the Portfolio Properties, or the lien thereon created by the
item being contested, to be sold for the nonpayment thereof, or as shall permit
an action, either of foreclosure or otherwise, to be commenced by the holder of
any such lien.  Borrower will not claim
any credit on, or make any deduction from the Indebtedness by reason of the
payment of any Imposition.

 

Borrower hereby assigns to
Lender all rights of Borrower now or hereafter arising in and to the refund of
any Imposition and any interest thereon. 
If following receipt of any such refund by Lender, there exists no Event
of Default (as hereinafter defined) hereunder, then Lender shall pay over the
same to Borrower promptly after demand; if there exists an Event of Default
hereunder, Lender may apply said refund in reduction of the Indebtedness in
whatever order Lender may elect (subject, however, to any refund or credit owed
to any tenant under a Lease where such tenant is not in default under its
Lease).

 

7.             Tax Deposits.  Borrower and Lender have entered into a Real
Estate Tax Escrow and Security Agreement of even date herewith (as the same may
be amended, modified, substituted or supplemented from time to time, the “Tax
Escrow Agreement”), the terms of which provide for the escrow and payments
of money with respect to real estate taxes, assessments and other payments to
Governmental Authorities in lieu thereof (“Taxes”) that are 

 

14

 

not payable directly to the
applicable Governmental Authority by tenants under Leases approved by Lender or
otherwise entered into in accordance with the Loan Documents.  Notwithstanding the provisions of
Section 6 hereof, Borrower covenants to perform its obligations under the
Tax Escrow Agreement and Lender has agreed that Borrower may perform its
obligations under this Loan Agreement with respect to the Taxes in accordance
with the Tax Escrow Agreement.  In the
event that Borrower defaults under the Tax Escrow Agreement, or the Tax Escrow
Agreement is terminated for any reason, or in the event that the Tax Escrow
Agreement becomes ineffective or otherwise unenforceable, then the balance of
the terms and conditions of this Section shall be applicable and control
with respect to the Taxes.

 

Subject to the last
paragraph of this Section 7, Borrower shall deposit with Lender or with an
escrow agent selected by Lender, on the first (1st) day of the calendar month immediately following
the date of the Initial Advance and on the first (1st) day of each calendar month thereafter (each of
which dates is hereinafter called the “Monthly Tax Deposit Date”) until
the payment in full of the Indebtedness a sum equal to one-twelfth (1/12) of
the Taxes to be levied, charged, assessed or imposed upon or for the Portfolio
Properties within one (1) year after the Monthly Tax Deposit Date.  If on any Monthly Tax Deposit Date the amount
of Taxes to be levied, charged, assessed or imposed within the ensuing one
(1) year period shall not be fixed, such amount for the purpose of
computing the deposit to be made by Borrower hereunder, shall be reasonably
estimated by Lender, with appropriate adjustment when the amount of such Taxes
is fixed.

 

The sums deposited by
Borrower under this Section shall be held in an interest-bearing account
with interest being retained by Lender and free of trust except to the extent,
if any, that applicable law shall otherwise require and applied in payment of
such Taxes when due and except as provided in the paragraph immediately
below.  Borrower shall give thirty (30) days’
prior written notice to Lender in each instance when any Taxes are due,
specifying the Taxes to be paid and the amount thereof, the place of payment
and the last day on which the same may be paid in order to be within the time
limit specified in Section 6 hereof entitled “Impositions.”

 

Notwithstanding the
foregoing provisions and so long as Borrower holds title to and controls the
Portfolio Properties (subject to any Site that has been released from the lien
of the Loan Documents in  accordance with
this Agreement), Taxes are paid in full when due (subject to Borrower’s right
to contest as set forth herein) and there has been no Event of Default, or any
state of facts which, with the passage of time or giving of notice, or both,
would constitute an Event of Default under the Loan Documents, the interest
earned by such escrows, less reasonable escrow costs, will be credited to
Borrower against such escrow amounts next due, following Lender’s receipt of
evidence that such Taxes have been paid in full.

 

If for any reason the sums
on deposit with Lender or escrow agent under this Section shall not be
sufficient to pay any Taxes within the time specified in Section 6 hereof,
then Borrower shall, within ten (10) Business  Days after demand by Lender, deposit sufficient
sums so that Lender may pay such Taxes in full, together with any penalty and
interest thereon.  Lender, acting
reasonably, may change its estimate of Taxes for any period, on the basis of a
change in an assessment or tax rate or on the basis of a prior miscalculation
or for any other reason, in which event Borrower shall deposit with Lender or
escrow agent within ten (10)

 

15

 

Business Days after demand
the amount of any excess of the deposits which would theretofore have been
payable under the revised estimate over the sums actually deposited.

 

If any Taxes shall be
levied, charged, assessed or imposed upon or for the Portfolio Properties, or
any portion thereof, and if such Taxes shall also be a levy, charge, assessment
or imposition upon or for any other premises not covered by the lien of the
Portfolio Mortgages, then the computation of the amounts to be deposited under
this Section shall be based upon the entire amount of such Imposition and
Borrower shall not have the right to apportion any deposit with respect to such
Imposition.

 

Upon an assignment of the
Portfolio Mortgages, Lender shall have the right to arrange to transfer all
amounts deposited and still in its possession to the assignee and Lender shall
thereupon be completely released from all liability with respect to such
deposit and Borrower and/or any other owner of the Portfolio Properties shall
look solely to the assignee or transferee in reference thereto.

 

Upon the payment in full by
Borrower of the entire Indebtedness, any sums then held by Lender under this
Section shall be refunded to Borrower.

 

All amounts deposited shall
be held by Lender as additional security for the sums secured by the Portfolio
Mortgages, and Borrower hereby grants to Lender a security interest in such
sums, and upon the occurrence of an Event of Default hereunder Lender may, in
its sole and absolute discretion, apply said amounts to the payment of the
Indebtedness in whatever order Lender may elect.

 

Promptly upon receipt of
such by Borrower, Borrower shall deliver to Lender copies of all notices,
demands, claims, bills and receipts in relation to the Impositions.  Additionally, within thirty (30) days after
the final date that Taxes can be paid without penalty or interest, Borrower
shall deliver to Lender evidence of the payment in full of all Taxes, whether
or not such Taxes are payable directly to the applicable Governmental Authority
by tenants under Leases approved by Lender or otherwise entered into in accordance
with the Loan Documents.

 

Notwithstanding the
foregoing provisions, (a) Lender hereby waives the requirement for
deposits as to that portion of Taxes payable directly to the applicable
Governmental Authority by tenants under the terms of Leases (as hereinafter
defined) approved by Lender or otherwise entered into in accordance with the
Loan Documents, provided satisfactory proof of payment is promptly furnished to
Lender; and (b) Borrower may elect to provide Lender with an unconditional
and irrevocable sight draft letter of credit, in form and substance reasonably
satisfactory to Lender, drawn on a bank satisfactory to Lender, payable to
Lender and in the amount that would otherwise be required to be funded into the
escrow provided by this Section 7.

 

8.             Change in Taxes.  In the event any tax shall be due or become
due and payable to the United States of America, the Commonwealth of
Massachusetts, the state or commonwealth of any Site or any political
subdivision thereof with respect to the execution and delivery or recordation
of the Portfolio Mortgages or any other Loan Document or the interest of Lender
in the Portfolio Properties, Borrower shall pay such tax at the time and in the
manner required by 

 

16

 

applicable law and Borrower
shall hold Lender harmless and shall indemnify Lender against any liability of
any nature whatsoever as a result of the imposition of any such tax (provided
that in no case shall the foregoing apply to any income tax, franchise tax, or
similar tax on the income or profits of Lender).  In the event of the enactment, after the date
of this instrument, of any law changing in any way the present law as to the
taxation of notes or debts secured by mortgages, for Federal, State or local
purposes, or the manner of collection of any Impositions, so as to affect this
Loan Agreement, the Portfolio Mortgages or the Note secured thereby, then
Borrower shall, within sixty (60) days from written demand, make such payments
to Lender and take such other steps, as may be necessary in Lender’s reasonable
judgment, to place Lender in the same financial position as it was prior to any
such enactment, failing which, or if the Borrower is not permitted by law to
make such payments, the Indebtedness shall, at the option of Lender, become due
and payable one hundred and twenty (120) days after written notice to Borrower
(provided that in no case shall the foregoing apply to any income tax,
franchise tax, or similar tax on the income or profits of Lender).

 

9.             Sidewalks,
Municipal Charges.  Borrower
will, not later than the last day on which the same may be paid without penalty
or interest, and except to the extent that the same is the obligation of a
tenant to pay directly to the applicable Governmental Authority under a Lease
approved by Lender or otherwise entered into in accordance with the Loan
Documents, pay and discharge any and all license fees and similar charges, with
penalties and interest thereon, which may be imposed by the municipality in
which the Portfolio Properties are situated, for the use of vaults, chutes,
areas and other space beyond the lot line and under or abutting the public
sidewalks in front of or adjoining the Portfolio Properties, and except to the
extent that the same is the obligation of a tenant to pay directly to the
applicable Governmental Authority under a Lease approved by Lender or otherwise
entered into in accordance with the Loan Documents, Borrower will promptly cure
any violation of law and comply in all material respects with any order of such
municipality respecting the repair, replacement or condition of the sidewalk or
curb in front of or adjoining the Portfolio Properties, and in default thereof
Lender may, upon ten (10) Business Days’ prior written notice to Borrower,
pay any and all such license fees or similar charges, with penalties and
interest thereon, and the charges of the municipality for such repair or
replacement, and any amount so paid or advanced by Lender and all costs and
expenses incurred in connection therewith (including, without limitation,
attorneys’ fees), with interest thereon at the Default Rate (as defined below),
shall be a demand obligation of Borrower to Lender, and, to the extent
permitted by law, shall be added to the Indebtedness and shall be secured by
the lien of the Portfolio Mortgages.

 

10.          Insurance.  Borrower shall at all times until the
Indebtedness shall be paid in full, keep the Portfolio Properties insured
against loss or damage for its full replacement cost (which cost shall be reset
once a year at Lender’s option) under policies of All Risk Replacement Cost
Insurance with Agreed Amount Endorsement (including nuclear explosion, if
available), and otherwise upon the following terms and conditions:

 

(a)           Borrower shall further
provide the following insurance in such amounts as shall be reasonably approved
by Lender:  flood insurance (if any Site
is situated in an area which is considered a flood risk area by the federal
government or any agency thereof); boiler and machinery insurance; earthquake
and windstorm insurance; rent loss insurance in an amount sufficient to cover
the total of all Rents (as defined in the 

 

17

 

Portfolio
Mortgages) accruing from the Portfolio Properties for a one (1) year
period; worker’s compensation as required by law; comprehensive general
liability insurance in a minimum amount of $1,000,000, and excess or umbrella
liability of at least $10,000,000, a Demolition and Increased Cost of Construction
endorsement; and such other appropriate insurance as Lender may reasonably
require from time to time.

 

(b)           Such insurance shall contain
no exclusion for acts of terrorism and shall include coverages, limits,
deductibles and amounts relating to acts of terrorism acceptable to Lender in
its sole discretion, including without limitation, (i) coverage for acts
of domestic and international terrorism, (ii) coverage whether or not a
specific act is certified under the Terrorism Risk Insurance Act of 2002 as an
act of terrorism by the U.S. Secretary of the Treasury, and (iii) coverage
amounts, deductibles and limits/sublimits acceptable to Lender in its sole
discretion; provided, however, that notwithstanding anything to the contrary
herein, in no case shall Borrower be required to provide terrorism coverage
with respect to any Site unless such coverage is generally available on
commercially reasonable terms and unless the incremental premium for such
coverage would not exceed 150% of the cost thereof as of the Initial Advance.

 

(c)           During any period of
construction or restoration, Borrower shall provide a policy or policies of
builder’s “all risk” insurance in an amount not less than the full insurable
value of the Site(s).

 

(d)           The insurance policies must
include a waiver of subrogation in favor of Lender.

 

(e)           Within 90 days after the
issuance or renewal of any insurance policies required to be provided
hereunder, Borrower will deliver to Lender certified copies of each such
policy.  Each policy of insurance
provided by Borrower shall (i) be issued by a company or companies
approved by Lender and rated not less than A-/X in accordance with the latest
“Best Insurance Guide,” (ii) name Lender as an additional insured, and as
Mortgagee/Loss Payee under any mortgagee clauses, (iii) provide that all
proceeds shall be payable to Lender, (iv) provide that it may not be
cancelled or modified except upon thirty (30) days prior written notice to
Lender (if an ACCORD 25 form is given as evidence of liability coverage, the
words “endeavor to” and “but failure to mail such notice shall impose no
obligation or liability of any kind upon the company, its agents or
representatives” must be stricken from the clause on the certificate(s)),
(v) provide that no act or thing done by Borrower shall invalidate the
policy as against Lender, (vi) be endorsed with standard noncontributory
mortgagee clauses in favor of and in form acceptable to Lender,
(vii) indicate the exact location of the Portfolio Properties,
(viii) name Borrower as the named insured exactly as Borrower is named in
the Loan Documents, and (ix) otherwise be in such form as shall be
reasonably acceptable to Lender, so that at all times until the payment in full
of the Indebtedness, Lender shall have and hold the said policy and policies as
further collateral for the payment of all Indebtedness.  Throughout the term of this Loan, Borrower
will provide reasonable evidence indicating the anticipated renewal of such
insurance to Lender at least thirty (30) days prior to the expiration of any
policy or policies of insurance. 
Notwithstanding the foregoing, Borrower shall be permitted to maintain
the policies with insurance companies that do not meet the above rating
requirement (an “Otherwise Rated Insurer”), 

 

18

 

but in no event with a
rating of less than A, provided Borrower obtains a so-called “cut-through”
endorsement (i.e., an endorsement which permits recovery directly from
insurer’s reinsurers) from the Otherwise Rated Insurer.  In addition, if Borrower desires to maintain
insurance required hereunder from an insurance company which does not meet the
rating set forth above but the parent company of such insurance company, which
owns at least fifty-one percent (51%) of such insurance company, and is itself
an insurance company, maintains such ratings, Borrower may use such insurance
companies but only if such parent and the Otherwise Rated Insurer have
contractually agreed to honor each other’s financial obligations.

 

(f)            If Borrower shall
fail to obtain any such policy or policies required by Lender, or shall fail to
assign and deliver the same to Lender, then 
Lender may obtain such insurance and pay the premium or premiums  herefore, in which event Borrower shall, on
demand of Lender, repay such premium or premiums to Lender and such repayment
shall be secured by the lien of the Portfolio Mortgages. If Borrower fails to
maintain the level of insurance required under this Loan Agreement, then
Borrower shall indemnify Lender to the extent that a casualty occurs and
insurance proceeds would have been available had such insurance been
maintained.

 

(g)           Borrower shall
promptly provide to Lender copies of any and all notices (including notice of
non-renewal), claims, and demands which Borrower receives from insurers of the
Portfolio Properties.

 

(h)           Effective from
and after any Event of Default, Borrower hereby assigns to Lender all rights of
Borrower in and to any unearned premiums on any insurance policy required to be
furnished by Borrower.

 

Notwithstanding anything to
the contrary in this Section 10, to the extent that the provisions of a Lease,
existing as of the date hereof or entered into after the date hereof with
Lender’s prior written approval, requires the tenant to maintain and/or pay for
insurance that does not satisfy the above requirements, the insurance required
by such Lease will be deemed to satisfy the above provisions with respect to
the applicable Site.  The foregoing
sentence, however, shall not apply to a Lease that otherwise satisfies the
Approval Waiver Requirements set forth below and is not otherwise previously
approved in writing by Lender.

 

11.          Insurance/Condemnation
Proceeds.  Subject to
the provisions of this Section and of Sections 12 and 13 hereof, Borrower
hereby assigns to Lender all proceeds of any insurance or condemnation awards
which Borrower may be entitled to receive for loss or damage to, or a taking
of, the Portfolio Properties.  In the
event of loss or damage to, or a taking of, any Site, the proceeds of said
insurance or condemnation award shall be payable to Lender alone and Borrower
hereby authorizes and directs any affected insurance company or government
agency to make payment of the insurance proceeds or condemnation awards
directly to Lender; provided, however, that so long as (a) no Event of Default
exists hereunder, or any event which, with the giving of notice or passage of
time, or both, would constitute an Event of Default, (b) the insurance proceeds
or condemnation awards do not exceed Two Hundred Fifty Thousand Dollars
($250,000) (the “Loss Threshold”), and (c) if the casualty or
condemnation affects any Site owned under a ground lease, such ground lease
remains in full force and effect and is not terminable as a result of a
casualty or condemnation, Lender hereby authorizes payment of the

 

19

 

insurance proceeds or
condemnation awards directly to Borrower. 
In the event that any such insurance proceeds or condemnation awards are
paid directly to Borrower in contravention of the provisions of this Loan
Agreement, Borrower shall make such proceeds or awards available to Lender
within five (5) Business Days of Borrower’s receipt thereof.  No such loss or damage shall itself reduce
the Indebtedness.  Upon any Event of
Default, Lender is authorized to adjust and compromise such loss without the
consent of Borrower, to collect and receive such proceeds or awards in the name
of Lender and Borrower and to endorse Borrower’s name upon any check in payment
thereof.  Subject to the provisions of
Sections 12, 13 and 14 hereof, such proceeds or awards shall be applied first
toward reimbursement of all costs and expenses of Lender in collecting said
proceeds or awards, then toward payment of the Indebtedness or any portion
thereof, whether or not then due and payable, in whatever order Lender may
elect, or Lender may, at its option, apply said insurance proceeds or
condemnation awards in whole or in part toward restoration of the
Site(s) for which such insurance proceeds or condemnation awards shall
have been paid.

 

In the event of foreclosure
of the Portfolio Mortgages or other transfer of title to the Portfolio
Properties and extinguishment, in whole or in part, of the Indebtedness, all
right, title, and interest of Borrower in and to any insurance policy, or
premiums or payments in satisfaction of claims or any other rights thereunder
then in force, shall pass to the purchaser or grantee notwithstanding the
amount of any bid at such foreclosure sale. 
Nothing contained herein shall prevent the accrual of interest as
provided in the Notes on any portion of the principal balance due under the
Notes until such time as the insurance proceeds or condemnation awards are
actually received and applied to reduce the principal balance outstanding.

 

12.          Restoration
Following Fire and Other Casualty or Condemnation.  In the event of damage to any Site by reason
of fire or other hazard or casualty, Borrower shall give prompt written notice
thereof to Lender and shall proceed with reasonable diligence to perform
repair, replacement and/or rebuilding work (hereinafter referred to as the “Work”)
to restore the Site(s) to its condition prior to such damage in full
compliance with all legal requirements. 
In the event of a taking by power of eminent domain or conveyance in
lieu thereof (“condemnation”), if restoration is feasible as reasonably
determined by Borrower and Lender, then Borrower shall proceed with reasonable
diligence to perform such restoration (also referred to as the “Work”).  Before commencing the Work with a cost in
excess of the Loss Threshold, Borrower shall obtain the approval of Lender with
respect to any plans and specifications and any material design or construction
contracts, which approval shall not be unreasonably withheld, conditioned, or
delayed, and thereafter Borrower shall perform the Work diligently and in good
faith substantially in accordance with the approved plans and specifications
and shall cause the lien free completion of such Work.  Upon completion of the Work, Borrower shall
deliver to Lender a reasonably acceptable survey, architect’s and/or engineer’s
certificate, title endorsement, certificate of occupancy, and such other
documentation as is reasonably required by Lender.  If 
Lender shall have elected or, as provided in Section 13 hereof, is
required to apply any insurance proceeds or condemnation awards toward repair
or restoration of the Site(s), then Borrower shall enter into
escrow/construction funding arrangements reasonably satisfactory to Lender
prior to the disbursement of any proceeds.

 

20

 

 

13.          Disposition of
Condemnation or Insurance Proceeds.

 

(a)           Loss Less Than
or Equal to Loss Threshold.  Notwithstanding anything herein to the
contrary, with respect to any casualty or condemnation as to which the
insurance proceeds or condemnation awards do not exceed the Loss Threshold, and
so long as (a) no Event of Default exists hereunder, or any event which,
with the giving of notice or the passage of time, or both would constitute an
Event of Default (other than an Event of Default that will be cured by the
repair of the casualty in question), and (b) if the casualty or
condemnation affects a Site owned under a ground lease, such ground lease
remains in full force and effect and is not terminable as a result of a
casualty or condemnation (or any such termination rights have been irrevocable
waived), Lender agrees to make insurance proceeds and condemnation awards
available to Borrower for repair and restoration of the Site(s).  If the above conditions are not satisfied
with respect to any casualty or condemnation as to which the insurance proceeds
or condemnation awards do not exceed the Loss Threshold, Lender, in its
absolute discretion (except as set forth below), may decide whether and to what
extent, if any, proceeds of insurance or condemnation awards will be made
available to Borrower for repair or restoration of the Site(s), but (except if
an Event of Default exists) Borrower shall be relieved of any repair or
restoration obligations to the extent that Lender does not make such proceeds
available for that purpose.

 

(b)           Loss In Excess
of Loss Threshold.  With
respect to any casualty or condemnation as to which the insurance proceeds or
condemnation awards exceed the Loss Threshold, Lender, in its absolute
discretion (except as set forth below), may decide whether and to what extent,
if any, proceeds of insurance or condemnation awards will be made available to
Borrower for repair or restoration of the Site(s), but (except if an Event of
Default exists) Borrower shall be relieved of any repair or restoration
obligations to the extent that Lender does not make such proceeds available for
that purpose.  Notwithstanding the
foregoing to the contrary, with respect to any insurance proceeds or
condemnation awards that exceed the Loss Threshold, Lender agrees to make such
casualty insurance and condemnation proceeds available to Borrower for
restoration or repair of the Real Property, provided:

 

(i)            In the case of a
condemnation, the portion of the Real Property remaining after the taking is
still an economically viable unit for the purposes set forth in the Loan
Documents in the reasonable opinion of Lender;

 

(ii)           There has been no Event of
Default under the Loan Documents in the twelve (12) months preceding the damage
or taking, and there does not then exist an Event of Default, or any state of
facts which, with the passage of time or the giving of notice, or both, would
constitute an Event of Default under any of the Loan Documents (other than an
Event of Default that will be cured by the repair of the casualty in question);

 

(iii)          Borrower can demonstrate to
Lender’s reasonable satisfaction that Borrower has the financial ability to
make all scheduled payments when due under the Loan Documents during
reconstruction from the proceeds of rent insurance and/or Borrower’s own funds;

 

21

 

(iv)          Such damage or destruction
(or renovation or restoration of the remainder of the Site(s) in the event
of a condemnation) can be fully restored or repaired prior to the last six (6) months
of the term of the Loan;

 

(v)           The funds are released under
escrow/construction funding arrangements reasonably satisfactory to Lender;

 

(vi)          Annual income from Leases in
place and approved by Lender that are not terminable as a result of the
casualty or condemnation provide annual debt service coverage on the portion of
the Loan allocated to the Site(s) that is at least equal to that which
existed as to the Site(s) prior to such casualty or condemnation;

 

(vii)         The repairs and restoration
will restore the Improvements to substantially the size, design and utility (or
in the event of a condemnation, to an economically viable unit for purposes set
forth in the Loan Documents) as existed immediately prior to the casualty or
condemnation;

 

(viii)        Borrower can demonstrate to
Lender’s reasonable satisfaction that Borrower has the financial ability to
complete such repair and restoration from the proceeds of such insurance and
Borrower’s own funds; and

 

(ix)          if the casualty or
condemnation affects a Site owned under a ground lease, such ground lease
remains in full force and effect and is not terminable as a result of a
casualty or condemnation (or any such termination rights have been irrevocably
waived).

 

If
the conditions set forth in this Section 13 are not satisfied and Lender
elects not to make the proceeds available for the Work, then notwithstanding
anything in the Loan Documents to the contrary: 
(1) so long as there exists no Event of Default at the time of
prepayment other than one related to the casualty or condemnation in question,
such proceeds shall be applied to reduce the Indebtedness by first applying the
same to any accrued but unpaid expenses, then to any accrued but unpaid
interest and then to principal; (2) so long as there exists no Event of
Default at the time of prepayment other than one related to the casualty or
condemnation in question, any principal reduction from an early involuntary
payment as a result of the application of condemnation awards or insurance
proceeds will be at par without payment of any Prepayment Fee with respect to
such awards or proceeds and shall cause a re-calculation of debt service
payments based upon the reduced Loan balance, the remaining amortization
schedule and the Interest Rate; provided, however, that if there exists an
Event of Default other than one related solely to the casualty or condemnation
in question, a pro rata Prepayment Fee (as provided for in the Note) shall also
be due, (3) if the insurance or condemnation proceeds that Lender applies
to the Indebtedness equal or exceed the Allocated Loan Amount for the
applicable Site, and provided that no Event of Default exists (other than one
related to the casualty or condemnation in question), (y) Lender shall
release such Site from the lien and other provisions of the applicable
Portfolio Mortgage and all other Loan Documents and (z) any amount by
which such proceeds exceed the applicable Allocated Loan Amount shall be
applied to the Indebtedness (without Prepayment Fee) and shall cause a re-calculation
of debt service payments based upon the reduced Loan balance, the remaining
amortization schedule and the 

 

22

 

Interest
Rate, and (4) if the insurance or condemnation proceeds that Lender
applies to the Indebtedness are less than the Allocated Loan Amount for the
applicable Site, Borrower shall have the right to prepay the balance of the
applicable Allocated Loan Amount at par without payment of any Prepayment Fee,
in which event Lender shall release such Site from the lien and other
provisions of the applicable Portfolio Mortgage and all other Loan Documents.

 

14.          Fire and Other
Casualty; Self-Help.  If within
one hundred twenty (120) days after the occurrence of any damage to the Site(s) in
excess of the Loss Threshold or the condemnation of any material portion of the
Site(s), Borrower shall not have submitted to Lender and received Lender’s
approval of plans and specifications for the Work pursuant to Section 12,
or shall not have obtained approval of such plans and specifications from all
Governmental Authorities whose approval is required, or if, after such plans
and specifications are approved by Lender and all such Governmental
Authorities, Borrower shall fail to promptly commence the Work, or if
thereafter Borrower fails to perform the Work diligently or is delinquent in
the payment to mechanics, materialmen or others of the costs incurred in
connection with the Work, or, in the case of any loss or damage not in excess
of the Loss Threshold, if Borrower shall fail to complete the Work promptly,
then, in addition to all other rights herein set forth, and after giving
Borrower thirty (30) days’ written notice of the nonfulfillment of one or more
of the foregoing conditions Lender, or any lawfully appointed receiver of the
Site(s), may at its respective option, and subject to the rights of tenants
under Leases, perform or cause the Work to be performed, and may take such
other steps as it deems advisable to perform the Work, and may enter upon the Site(s) for
any of the foregoing purposes, and Borrower hereby waives, for Borrower and all
others holding under Borrower, any claim against Lender or such receiver
arising out of anything done by Lender or such receiver pursuant to this
Section, and Lender may apply insurance proceeds (without the need to fulfill
the requirements of Section 13 hereof) to reimburse Lender, and/or such
receiver for all amounts expended or incurred by them, respectively, in
connection with the performance of the Work, and any excess costs shall be paid
by Borrower to Lender upon demand, with interest at the Default Rate (as
hereinafter defined), and such payment shall be secured by the lien of the
Portfolio Mortgages.  Notwithstanding the
foregoing, provided that no Event of Default exists, (1) the foregoing
time periods for obtain approvals and commencing the Work shall be extended as
reasonably necessary so long as Borrower has commenced and is diligently
pursuing cure of such matters not to exceed a total of an additional one
hundred twenty (120) days, and (2) except if an Event of Default exists,
Borrower shall be relieved of any obligation to repair or restore to the extent
that Lender elects not to make insurance or condemnation proceeds available for
such purpose.

 

15.          Rent Insurance
Proceeds.  So long as
Borrower is proceeding diligently under the terms of Section 12 and/or 13
hereof, and there is no Event of Default under the Loan Documents, then (a) Lender
shall hold the rent insurance proceeds in an interest-bearing account, with
interest for the benefit of Borrower, and (b) Lender shall each month pay
to Borrower out of the rent insurance proceeds held by Lender a sum equal to
that amount, if any, of the rent insurance proceeds paid by the insurer which
is allocable to the rental loss for the current month.  Lender, at its option, may waive any of the
foregoing conditions to the payment of rent insurance proceeds.  If Borrower does not fulfill the foregoing
conditions entitling Borrower to monthly disbursements of rent insurance
proceeds, together with the interest thereon, then such rent insurance proceeds
may be applied by Lender, at Lender’s option, to the payment of the
Indebtedness in whatever order Lender may elect.

 

23

 

16.          Transfers;
Encumbrances.  Except as
specifically provided in this Agreement, (i) Borrower shall not transfer,
sell or assign the Portfolio Properties, any interest in the Portfolio
Properties, or any controlling interest in Borrower or any controlling interest
in an entity that owns or controls Borrower, and (ii) Borrower shall not (a) encumber
the Portfolio Properties with any lien other than the lien of the Portfolio
Mortgages, nor (b) pledge or otherwise encumber all or any of the direct
interests in any Borrower as security for any financings.  For purposes of this Section, the terms “control”
and “controlling” mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of
Borrower, whether through the ownership of voting securities, by contract or
otherwise.

 

17.          Right to
Transfer Portfolio Properties.  Notwithstanding the provisions contained in
Section 16 hereof or in any other provision of the Loan Documents,
Borrower shall have the right to a one-time sale, transfer or assignment in
whole or in part of its interest in the Portfolio Properties to any party that
is a Qualified Real Estate Investor (hereinafter defined) or that, directly or
indirectly, is at least 51% owned by one or more Qualified Real Estate
Investors (collectively, a “Permitted Transferee”), provided:

 

(a)           there is no Event of Default
under the Loan Documents at the time of transfer;

 

(b)           a property inspection by
Lender or Lender’s designee shows that all reasonably necessary maintenance on
or damage or destruction to the Portfolio Properties has been completed or
repaired (except to the extent that the same is the responsibility of the
tenant under a Lease that is in full force and effect);

 

(c)           the Debt Coverage Ratio on
the Loan exceeds 1.50 times;

 

(d)           At least thirty (30) days
prior to such a transfer, Borrower provides Lender with all of the material
provisions of such transfer, including without limitation the proposed date of
transfer, and the name, net worth, background and address of the proposed
transferee and the purchase price;

 

(e)           The proposed transferee
executes and delivers to Lender such documents as Lender may reasonably require
evidencing that the proposed transferee shall fulfill each and every obligation
of Borrower under the Loan Documents arising from and after the transfer and
that such transfer shall not affect or impair Lender’s security and rights
under the Loan Documents;

 

(f)            Except as otherwise
expressly provided below, at the closing of the assignment and assumption,
Borrower or the transferee pays Lender a non-refundable fee in the amount of
one-half of one percent (0.5%) of the then outstanding principal balance of the
Loan in cash or certified check or by wire transfer of immediately available
funds to be retained by Lender in order to induce Lender to allow the proposed
transferee to assume the obligations of Borrower under the Loan Documents;

 

(g)           the loan-to-value ratio of
the Loan based on the purchase price in the applicable sale must not exceed
sixty-two and one-half percent (62.5%) (Borrower or the transferee shall have
the right to make a partial paydown of the Loan at the time of the 

 

24

 

transfer
to the extent necessary to satisfy this condition, subject to payment of the
Prepayment Fee);

 

(h)           Borrower provides Lender
with such evidence as Lender may reasonably require that such transfer shall
not affect or impair Lender’s security and rights under the Loan Documents; and

 

(i)            Borrower or the transferee
pays for all of Lender’s costs and expenses associated with the transfer,
including without limitation, attorney’s fees charged by Lender’s counsel.

 

If
Prime Borrower is a Publicly Traded Entity (as defined below) or is owned
(directly or indirectly) by a Publicly Traded Entity during the Term and all
other requirements of this Section 17 are satisfied, Lender agrees to
waive the requirement of payment of the fee pursuant to Section 17(f) above.  As used herein, “Publicly Traded Entity”
means an entity whose stock is listed on the New York Stock Exchange or any
other nationally recognized stock exchange.

 

As
used in this Agreement, the following terms have the following meanings:

 

“Debt
Coverage Ratio” means the ratio, as reasonably determined by Lender, of (i) Net
Operating Income from the Portfolio Properties for the applicable period of
time to (ii) Total Annual Debt Service for the applicable period of time.

 

“Net
Operating Income” means all gross income from the operation and ownership
of the Portfolio Properties for the previous twelve (12) month period from
Leases of space therein (to the extent Lender reasonably projects such income
will continue for the immediately succeeding twelve (12) month period),
including, without limitation, Rents, Taxes, fees, utility charges and all
other amounts paid by tenants under their Leases (whether payable to Borrower
or directly to third parties such as taxing authorities) (collectively, “Gross
Revenues”); subtracting therefrom, to the extent (and only to the extent)
payable by Borrower without any right of reimbursement from tenants, all
necessary and ordinary operating expenses applicable to the Portfolio
Properties for such period of time (both fixed and variable to the extent
reasonably projected by lender to continue for the next succeeding twelve (12)
month period), including but not limited to, utilities, administrative,
cleaning, landscaping, security, repairs and maintenance, ground rent payments,
management fees, real estate and other taxes, assessments and insurance, but
excluding therefrom deductions for federal, state and other income taxes, debt
service expenses, depreciation or amortization of capital expenditures and
other similar noncash items.  Gross
Revenues shall not be anticipated for any greater time period than that
approved by generally accepted accounting principles nor shall ordinary
operating expenses be prepaid. 
Documentation of Net Operating Income shall be certified by an officer
of Prime Borrower with detail reasonably satisfactory to Lender and shall be
subject to the reasonable approval of Lender.

 

“Total
Annual Debt Service” means the sum of (i) the aggregate regularly
scheduled debt service payments on the Portfolio Loan for the applicable time
period, plus (ii) the aggregate regularly scheduled debt service payments
(including principal and interest) on all other indebtedness secured by a lien
on all or part of the Portfolio Properties for the applicable time period.

 

25

 

“Qualified
Real Estate Investor” is defined as any reputable corporation, partnership,
limited liability company, real estate investment trust, listed property trust,
bank, saving and loan association, trust company, commercial credit
corporation, public or private pension fund or endowment, joint venture,
joint-stock company, trust or other legal entity or individual (i) based
in the United States, (ii) free from any bankruptcy, reorganization or
insolvency proceedings or any criminal charges or proceedings, and
(iii) that shall not have been, at the time of transfer or within the ten (10) year
period prior thereto, a litigant, plaintiff or defendant in any suit brought
against or by Lender (other than uncontested foreclosures).  Further, a Qualified Real Estate Investor
(alone or together with entities controlled or under common control with it)
shall: (a) have a minimum net worth
of Forty Million Dollars ($40,000,000), and (b) own and/or manage at least
five million (5,000,000) square feet of industrial space or retain a property
manager reasonably acceptable to Lender.

 

18.          Right to Change
Ownership Interests in Borrower.  (a) Notwithstanding the provisions
contained in Section 16 hereof or in any other provision of the Loan
Documents, provided that there is no Event of Default under the Loan Documents,
the following transfers shall not require Lender’s consent and shall not
constitute the exercise of the one-time transfer right set forth in Section 17
above: (i) transfers of direct or indirect interests in STAG GI
Investments as long as, following any such transfer, at least 51% of STAG GI
Investments continues to be owned, directly or indirectly, by GI Investors (as
defined below) or their Affiliates and/or by STAG Investors (as defined below)
or their Affiliates; and (ii) transfers of direct or indirect interests in
Prime Borrower as long as, following any such transfer, at least 100% of Prime
Borrower is owned, directly or indirectly, by STAG GI Investments, STAG
Industrial Operating Partnership, L.P., a Delaware limited partnership, and/or
STAG Industrial, Inc., a Maryland corporation.

 

As used in this Agreement, “GI
Investors” means (i) GI STAG Investco, LLC, a Delaware limited liability
company (the “GI Member”), a member of STAG GI Investments and/or (ii) any
entity that controls, is controlled by, or under common control with, the GI
Member.

 

As used in this Agreement, “STAG
Investors” means (i) Benjamin S. Butcher, (ii) Stephen Karp, (iii) Steven
Fischman, (iv) Gregory Sullivan, (v) their family members or trusts
for the benefit of such foregoing individuals and/or their family members, and (vi) any
entity in which more than fifty percent (50%) of the beneficial interests are
directly or indirectly owned by Benjamin S. Butcher, Stephen Karp, Steven
Fischman, Gregory Sullivan, their family members and/or by trusts for the
benefit of such individuals and/or their family members.

 

Borrower
represents and warrants that a true and accurate copy of Borrower’s
organizational chart is attached hereto as Exhibit M.

 

19.          Substitution of
Collateral.  Borrower
shall have the right from time to time, provided no Event of Default or an
event or condition that, with notice or the passage of time, or both, would
constitute an Event of Default by Borrower under the Loan Documents has
occurred, to substitute other real estate collateral reasonably acceptable to
Lender in accordance with its then current underwriting standards (“Substitute
Collateral”) for any of the Sites and to obtain a release of the applicable
Site from the lien of the Loan Documents (“Substitution of 

 

26

 

Collateral”).  Anything herein to the contrary
notwithstanding, the right may not be exercised more than two (2) times in
any 12 month period.  The Substitute
Collateral for a Site, as reasonably determined by Lender must (i) be of
similar or better quality than the existing Site, and (ii) provide similar
geographic diversification to the Portfolio Properties.  In addition, no substitution shall be allowed
that would cause: (i) the substitution of more than six (6) Sites in
the aggregate over the Term; (ii) the loan-to-value ratio of all of the
Portfolio Properties (including the proposed Substitute Collateral) as
reasonably determined by Lender immediately after the proposed substitution to
be greater than the lesser of (y) the loan-to-value ratio of all of the
Portfolio Properties immediately prior to the proposed substitution, or
(z) sixty-two and one-half percent (62.5%), or (iii)  the aggregate Debt
Coverage Ratio of all of the Portfolio Properties (including the proposed
Substitute Collateral) immediately after the proposed substitution to be less
than the greater of (y) the aggregate Debt Coverage Ratio for all of the
Portfolio Properties immediately prior to the proposed substitution, or
(z) 1.50 times.  Notwithstanding
anything to the contrary in the Loan Documents, Borrower shall have the right
to make a partial paydown of the Loan to the extent necessary to satisfy the
above requirements, subject to payment of the Prepayment Fee.

 

Lender
shall have the right to review, underwrite, accept or reject any proposed
Substitute Collateral, in Lender’s sole and absolute discretion in accordance
with its then current underwriting standards (subject to the loan-to-value and
debt coverage tests as aforesaid), including Lender’s right to review such
proposed Substitute Collateral in accordance with Lender’s customary
application and approval process. 
Without limiting the generality of the foregoing, Lender shall have the
right to review and approve:  (i) an
ALTA survey and Title Commitment, (ii) as-built plans and specifications
of all improvements, if available, (iii) certificates of occupancy, if
available, (iv) all Leases, (v) tenant estoppel certificates from
tenants occupying not less than seventy-five percent (75%) of the leasable area
of the Substitute Collateral, (vi) insurance coverage, (vii) rent
rolls, (viii) tenant lease subordination agreements from tenants occupying
not less than seventy-five percent (75%) of the leasable area of the Substitute
Collateral on forms reasonably acceptable to Lender, (ix) financial
statements, operating statements, budgets and other financial information
concerning the operation of the proposed Substitute Collateral,
(x) engineering reports, (xi) environmental reports, and
(xii) appraisals.  In the event of
any approved Substitution of Collateral, Lender shall be paid a fee in the
amount equal to Twenty Thousand Dollars ($20,000) for each proposed
substitution.  Borrower shall reimburse
Lender for all actual costs and expenses incurred in connection with any
proposed substitution or actual Substitution of Collateral, including, without
limitation, reasonable legal fees of outside counsel.  Lender shall apply diligence standards with
respect to Substitute Collateral that are generally consistent with the
standards applied in connection with the Initial Loan.

 

If
approved by Lender as provided above, the Substitute Collateral shall be
substituted so long as (a) there is as of the date of substitution no
Event of Default or an event or condition that, with notice or the passage of
time, or both, would constitute an Event of Default by Borrower under the Loan
Documents, (b) all the conditions set forth in this Section above
have been satisfied, and (c) Lender has received (i) a title insurance
policy (or an endorsement to the title policy) for the proposed Substitute
Collateral, (ii) executed and recorded, as applicable, amendments to the Loan
Documents necessary to evidence and secure the Substitute Collateral, and (iii) legal
opinions and such other items as Lender may reasonably require.

 

27

 

20.          Prepayment
Limitations; Release of a Site.  So long as no Event of Default or an event or
condition that, with notice or the passage of time, or both, would constitute
an Event of Default by Borrower under the Loan Documents has occurred, Borrower
may from time to time request that one or more Site(s) be released from
the lien of the Loan Documents.  Lender
will grant such request(s) for release, subject to the satisfaction of the
following conditions:  (i) Borrowers
shall pay to Lender (A) one hundred ten percent (110%) of the Allocated
Loan Amount for such Site (such amount, the “Release Prepayment”), (B) if
applicable in accordance with the Portfolio Note, a pro rata Prepayment Fee calculated on such Release
Prepayment, and (C) all costs and expenses, including reasonable legal
fees of outside counsel, incurred by Lender in connection with the partial
release, and (ii) Lender shall have reasonably determined that
(A) the loan-to-value ratio of the remaining Portfolio Properties (i.e.,
without consideration of the Site(s) proposed to be released) immediately after
such proposed release will be less than or equal to the loan-to-value ratio of
the Portfolio Properties (including the Sites proposed to be released)
immediately prior to the proposed release, and in all events not more than
sixty-two and one-half percent (62.5%), and (B) the aggregate Debt
Coverage Ratio of the remaining Portfolio Properties (i.e., without
consideration of the income from and the debt service attributable to the
Allocated Loan Amount(s) applicable to the Site(s) proposed to be
released) immediately after such proposed release will be greater than or equal
to the aggregate Debt Coverage Ratio for the Portfolio Properties (including
that attributable to the Sites proposed to be released) immediately prior to
the proposed release, but in no event less than 1.50 times.  Notwithstanding anything to the contrary in
the Loan Documents, Borrower shall have the right to make a partial paydown of
the Loan to the extent necessary to satisfy the above requirements, subject to
payment of the Prepayment Fee.

 

Anything herein to the
contrary notwithstanding, (a) Borrower’s right to partial releases may not
be exercised more than two (2) times in any 12 month period, and (b) at
all times Sites shall have cumulative aggregate Allocated Loan Amounts equal to
at least Forty-Five Million Dollars ($45,000,000) and shall remain subject to
the lien of the Portfolio Mortgages.

 

Following
any Release Payment, monthly payments under the applicable Portfolio Note shall
be revised to reflect the reduction of that Portfolio Note by the applicable
Release Prepayment.  The amount by which
the Release Prepayment exceeds the Allocated Loan Amount for such Site will be
applied against the Allocated Loan Amounts in the manner determined by Lender
in its reasonable discretion.

 

If a Portfolio Property to
be released is located in a state where there are mortgage recording taxes or
fees, Lender shall, at the request of Borrower deliver an assignment of the
applicable Portfolio Mortgage rather than a release, provided that the
assignment shall be without representation or warranty by Lender (other than
that Lender is the Holder of the Loan, free of pledges or encumbrances) and the
assignment documentation otherwise shall be reasonably acceptable to Lender.

 

Upon the release of any Site
from the lien of the Loan Documents in accordance with the terms of this
Agreement, Lender promptly shall cause the applicable Portfolio Mortgage,
Assignment of Leases and Rents, Uniform Commercial Code Financing Statements
and other security documents to be released of record.

 

28

 

21.          Representations
and Warranties.  Borrower
hereby makes the following representations and warranties to, and for the
benefit of Lender:

 

(a)           A true and accurate copy of
Borrower’s organizational chart is attached as Exhibit M.

 

(b)           Except as disclosed in
writing to Lender, no actions, suits, investigations, litigation, bankruptcy,
reorganization or other proceedings are pending at law or in equity before any
Governmental Authority, or to its actual knowledge, are threatened by any
Governmental Authority, against or affecting (A) any Borrower, (B) STAG
GI Investments, (C) GI Member, (D) STAG GI, LLC, a Delaware limited
liability company, (E) STAG Manager, LLC, a Delaware limited liability
company, (F) STAG Capital Co-Investments JV, LLC, a Delaware limited
liability company, or (G) STAG Residual JV, LLC, a Delaware limited
liability company (the entities identified in (B) through (G) collectively
referred to as the “Constituent Owners”).  None of the Borrowers or any Constituent
Owners or any manager of any Borrower have ever been adjudicated as bankrupt,
have ever filed or have had filed against them, any petition in bankruptcy or
have otherwise ever taken advantage of any bankruptcy, insolvency or other
readjustment of debt laws.

 

(c)           The execution, delivery and
performance of the Commitment, this Loan Agreement, or any of the other Loan
Documents will not constitute a breach or default under any other agreement to
which any Borrower or any other party thereto (other than Lender or Escrow
Holder) is or may be bound or affected.

 

(d)           To the actual knowledge of
Borrower, no Borrower is in violation of or in default with respect to any term
or provision of any other loan commitment, mortgage, deed of trust, indenture,
contract, or instrument applicable to such Borrower or by which such Borrower
is bound or with respect to any order, writ, injunction, decree or demand of
any court or any governmental agency or authority.

 

(e)           To Borrower’s actual
knowledge, all factual information set forth in the Commitment and its
exhibits, and all financial statements previously furnished by or on behalf of
any Borrower to Lender in connection with the Portfolio Loan and all other
submissions referred to herein or required by the Commitment are true, complete
and correct in all material respects as of the date indicated thereon, are not
misleading in any material respect as of their respective dates and do not omit
any information required to prevent such statements, loan submissions or
materials from being materially misleading under the circumstances; provided
that as to any third party reports provided to Lender by or on behalf of
Borrower, the foregoing representation of Borrower is limited to having
provided true and complete copies of such reports, and does not constitute a
representation of Borrower that all statements and conclusions therein are
accurate (although Borrower is not aware of any inaccuracy).

 

(f)            Except as disclosed to
Lender in writing, to the actual knowledge of Borrower, no material adverse
change in the financial condition of any Borrower has occurred since the date
of preparation of the most recent financial statements delivered to Lender.

 

29

 

 

(g)           Borrower
covenants as of the date hereof and until such time as the Indebtedness is paid
in full that, unless otherwise agreed to in writing by Lender, each Site
Borrower shall be a single-purpose entity, and in furtherance thereof:

 

(i)            No Site Borrower shall dissolve or liquidate (or
suffer any liquidation or dissolution).

 

(ii)           No Site Borrower will enter into any transaction of
merger or consolidation, or acquire by purchase or otherwise all or
substantially all the business or assets of, or any stock or other evidence of
beneficial ownership of, any entity, except as expressly contemplated by this
Loan Agreement.

 

(iii)          Except as otherwise provided in this Loan Agreement,
no Site Borrower will guarantee or otherwise hold out its credit as being available
to satisfy obligations of any other person or entity.

 

(iv)          Each Site Borrower was organized for the sole
purpose of acquiring leasing, managing and operating its respective Portfolio
Property and activities ancillary thereto.

 

(v)           No Site Borrower has engaged or shall engage in any
business unrelated to the acquisition, ownership, leasing, management and
operation of the Portfolio Properties and activities ancillary thereto; and the
same shall conduct and operate its business as presently conducted and operated
at all times relevant hereto.

 

(vi)          No Site Borrower has made or shall make any loans or
advances to any third party and will not pledge such Borrower’s assets for the
benefit of any third party.

 

(vii)         Each Site Borrower shall be, and at all times shall
hold itself out to the public as, a legal entity separate and distinct from any
other entity (including any Affiliate thereof) and shall otherwise conduct its
business and own its assets in its own name and shall correct any known
misunderstanding regarding its separate identity.

 

(viii)        The sole assets of each Site Borrower are, and for
the entire Term of the Loan shall be, its respective Portfolio Property(ies).

 

(ix)           Each Site Borrower shall observe all in all material
respects the formalities applicable to its form of organization.

 

22.           OFAC and Patriot Act
Provisions.

 

(a)           OFAC.  The Office of Foreign Assets Control (“OFAC”)
administers a set of laws imposing economic sanctions against hostile targets
in order to further United States national security and foreign policy
objectives.  These laws include any and
all federal laws (whether under common law, statute or otherwise), regulations,
executive orders and guidance documents 

 

30

 

now in force, as amended
from time to time, in any way relating to regulations or prohibitions on
transactions with individuals and entities owned or controlled by, or acting
for or on behalf of, the governments of target countries or associated with
international narcotics trafficking or terrorism, and includes, without
limitation, the Trading With the Enemy Act, 50 U.S.C.A. App. §1, et seq., the
International Emergency Economic Powers Act, 50 U.S.C.A. §1701, et seq., the
United Nations Participation Act, 22 U.S.C.A. §287c, the International Security
and Development Cooperation Act, 22 U.S.C.A. §2151, et seq., the Cuban
Democracy Act 22 U.S.C.A. §6001, et seq., The Cuban Liberty and Democratic
Solidarity Act 22 U.S.C.A. §6021, et seq., the Antiterrorism and Effective
Death Penalty Act, Pub.L. 104-132, 1996 Stat. 735, the Foreign Narcotic Kingpin
Designation Act, Pub.L. 106-120, Title VIII, §801, 113 Stat. 1626, all
regulations adopted under the foregoing acts, and Executive Order 13224 (the “OFAC
Laws”).  Each Borrower represents and
warrants to Lender that it has not taken or failed to take any actions,
directly or indirectly, in violation of the OFAC Laws.

 

Each
Borrower and holders of any beneficial or ownership interest in any Borrower
agree, during the Term of the Portfolio Loan, that no interest in the Portfolio
Properties or in any Borrower will be transferred to any party in interest with
respect to any of the persons or entities listed on the OFAC Specially
Designated Nationals and Blocked Persons List, as it is amended from time to
time, nor will any actions be taken, or fail to be taken, in violation of the
OFAC Laws.

 

Borrowers
hereby jointly and severally indemnify, defend, and hold harmless Lender of,
from and against any and all losses, liabilities, damages, claims, injunctions,
suits, proceedings, disbursements or expenses (including, without limitation,
reasonable attorneys’ and experts’ fees and disbursements and court costs) of
whatever kind or nature, and whether or not incurred in connection with any
judicial or administrative proceedings, which may be imposed upon, suffered by,
incurred by, or asserted against Lender that directly or indirectly arise out
of or in connection with a breach of the representations and warranties
contained in this Section.

 

(b)           Patriot Act.  In addition to, and not by way of limitation
of, any provision of the Loan Documents regarding compliance with laws, each
Borrower hereby represents and warrants that as of the date hereof and
throughout the Term (as defined in the Portfolio Note) of the Portfolio Loan,
the following statements are and shall be true, correct and complete without
material misrepresentation or omission:

 

(i)            No Borrower
nor, to Borrower’s actual knowledge, any of its constituent members or partners
is in violation of any Anti-Terrorism Law (defined below).

 

(ii)           No Borrower
nor, to Borrower’s actual knowledge, any of its constituent members or partners
is a Prohibited Person.

 

(iii)          No Borrower
nor, to Borrower’s actual knowledge, any of its constituent members or partners
(A) conducts any business or engages in any transaction or dealing with
any Prohibited Person, including the making or receiving of any contribution of
funds, goods or services to or for the benefit of any Prohibited Person, (B) deals
in, or otherwise engages in any transaction relating to, any property or
interests in property blocked pursuant to Executive Order No. 13224; or
(C) engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose or intent of evading or 

 

31

 

avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

 

Each
Borrower covenants and agrees that upon request by Lender from time to time,
such Borrower will deliver to Lender a certification addressed to Lender
confirming such Borrower’s ongoing compliance with the foregoing requirements,
or such other evidence as may be required to enable Lender to perform its
obligations under Anti-Terrorism law. 
Each Borrower further covenants and agrees that in the event Lender
delivers to Borrowers a list of persons or entities with whom Lender is
prohibited from dealing or engaging in any transaction by any Anti-Terrorism
Law (a “Lender List”), each Borrower shall review such Lender List and
deliver a certification that conforms to clause (iii)(A) above with
respect to the persons and/or entities on the applicable Lender List.

 

As
used in this Loan Agreement, the following terms have the following meanings:

 

“Anti-Terrorism
Law” means any Law relating to terrorism or money-laundering in effect at
any time and from time to time, including Executive Order No. 13224 and
the USA Patriot Act and the regulations promulgated thereunder.

 

“Executive
Order No. 13224” means the Executive Order No. 13224 on Terrorist
Financing, effective September 24, 2001, relating to “Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism.”

 

“Prohibited
Person” means:

 

(i)            a person or entity
that is listed in the Annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

 

(ii)           a person or
entity owned or controlled by, or acting for or on behalf of, any person or
entity that is listed in the Annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

 

(iii)          a person or
entity who commits, threatens or conspires to commit or supports “terrorism” as
defined in Executive Order No. 13224;

 

(iv)          a person or
entity that is named as a “specially designated national and blocked person” on
the most current list published by the U.S. Treasury Department Office of
Foreign Assets Control at its official website,
http://www.treas.gov/ofac/t11sdn.pdf, or at any replacement website or other
official publication of such list.

 

“USA
Patriot Act” means the “Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001”
(Public Law 107-56).

 

Borrowers
hereby jointly and severally indemnify, defend, and hold harmless Lender of,
from and against any and all losses, liabilities, damages, claims, injunctions,
suits, proceedings, disbursements or expenses (including, without limitation,
reasonable attorneys’ and experts’ fees 

 

32

 

and
disbursements and court costs) of whatever kind or nature, and whether or not
incurred in connection with any judicial or administrative proceedings, which
may be imposed upon, suffered by, incurred by, or asserted against Lender that
directly or indirectly arise out of or in connection with a breach of the
representations and warranties contained in this Section.

 

23.           Leases; Property Management.

 

(a)           Lease Subordination. Borrowers
have agreed under the Portfolio Mortgages and other Loan Documents that Rents
payable under any Lease affecting any of the Portfolio Properties shall (after
the notice to the tenant described in the following sentence) be paid directly
by the tenant to Lender upon any Event of Default under the Loan Documents.  Borrowers agree that after a tenant’s receipt
of notice from Lender to such tenant that rentals under its Lease should be
paid to Lender, such tenant may pay to Lender, or at the direction of Lender,
all monies due or to become due to the landlord under such Lease, and that such
tenant shall have no responsibility to ascertain whether such demand by Lender
is permitted under the Loan Documents, or to inquire into the existence of an
Event of Default.  Each Borrower hereby
waives any right, claim, or demand it may now or hereafter have against any
such tenant by reason of such payment to Lender, and any such payment shall
discharge the obligations of such tenant to make such payment to the landlord
under the applicable Lease.

 

(b)           Lease Approvals.  Except as provided herein, all leases and any
amendments, modifications, replacements, extensions, renewals, terminations
(except on account of a tenant default), subleases or assignments thereof (each
a “Lease” and collectively, the “Leases”) executed after the date
hereof must be submitted to Lender for prior written approval accompanied by
the proposed Lease and supporting economic data in reasonable detail.  Lender shall use commercially reasonable
efforts to respond within ten (10) Business Days from its receipt of a
written request for approval.  Lender’s
approval shall not be unreasonably withheld and shall be deemed given if Lender
fails to respond in writing within thirty (30) days from its receipt of a
written request for approval and supporting documentation, provided, however,
Lender’s approval shall not be deemed given in such event where the proposed
Lease contains any provision which would materially impair Lender’s lien on
such Site.  Borrower shall promptly
deliver to Lender a fully-executed copy of all such approved Leases.

 

Notwithstanding
the forgoing provisions, whenever Lender’s approval or consent is required
pursuant to the above provisions of this Section 23(b), Borrower shall
have the right to submit a term sheet or letter of intent of such transaction
to Lender for Lender’s approval prior to the submission of the proposed
lease.   Any such term sheet or letter or
intent submitted to Lender shall set forth all material terms of the proposed
transaction including, without limitation, identity of tenant, square footage,
term, rent, rent credits, abatements, work allowances and tenant improvements
to be constructed by Borrower.  Lender’s
approval shall not be unreasonably withheld and shall be deemed given if Lender
fails to respond in writing within thirty (30) days from its receipt of a
written request for approval and supporting documentation, provided, however,
Lender’s approval shall not be deemed given in such event where the proposed
Lease contains any provision which would materially impair Lender’s lien on
such Site.  Borrower shall promptly
deliver to Lender a fully-executed copy of all such approved Leases.

 

33

 

Notwithstanding the
foregoing or the provisions of Section 8 of the Portfolio Mortgages or any
other provision of the Loan Documents, for so long as there is no Event of
Default under any of the Loan Documents, nor any event or condition that, with
notice or the passage of time, or both, would constitute an Event of Default,
Lender shall waive its requirement to approve all Leases provided the following
requirements are met (the “Approval Waiver Requirements”):

 

(i)            The Lease
covers an area no greater than 100,000 square feet of net rentable area;

 

(ii)           The Lease is
written on a standard form of lease which Lender has previously approved in
writing, with no material changes that are adverse to the interest of landlord
(or, in the case of a renewal, is on the same form as the existing Lease);

 

(iii)          The length of
the Lease term is not less than one (1) year and no greater twenty (20)
years, including any renewal or extension options;

 

(iv)          The effective
Rent provided for over the Lease term is consistent with the then current
market effective rent of comparable space in competitive properties.  The schedule of Rent shall not decline over
the term of the Lease, including any extension;

 

(v)           The Lease does
not (i) grant the tenant any purchase option or right of first refusal to
purchase all or any portion of the Portfolio Property, (ii) grant the
tenant any interest in the ownership of the Portfolio Property or provide any
incentives equivalent to an ownership interest in the Portfolio Property, or
(iii) otherwise contain terms that would cause a material impairment of
the Lender’s security;

 

(vi)          The Lease does
not provide for the payment for tenant improvement work or leasing commissions,
or the granting of any rental concessions, at any time other than at or about
the commencement of the Lease;

 

(vii)         The Lease shall
be an arms length transaction and not be to Borrower, an Affiliate of Borrower,
or a creditor of Borrower, and Borrower shall not assign any portion of the
Rent to any third party; and

 

(viii)        The tenant
shall be obligated to take possession promptly upon completion of any required
improvements to the leased premises.

 

Notwithstanding
the Approval Waiver Requirements, Lender agrees to conditionally modify
subsection (i) above by increasing the square footage requirement to
200,000 square feet, provided that all other requirements of subsections (ii) through
(viii) are met.  Borrower
acknowledges that Lender will from time to time review and evaluate the status
of the Loan and that Lender shall retain the right, in its sole discretion, to
reinstate the lower square footage requirement at any time and for any
reason.  Upon Borrower’s receipt of
Lender’s written notice to reinstate the lower square footage requirement, the
square footage requirement shown in subsection (i) above shall be
immediately reinstated.

 

34

 

Lender
agrees to enter into non-disturbance and attornment agreements with tenants
under approved Leases, provided that each such agreement is substantially in
the form attached hereto or is otherwise reasonably acceptable to Lender.

 

(c)           Property Management.  Borrower shall not be required to engage a
third party property manager for any of the Sites.  If, however, any of the Sites is subject to a
third party management agreement (the “Management Agreement”), the
management company and the form and substance of the Management Agreement shall
be subject to Lender’s written approval (which shall not be unreasonably
withheld or delayed).  Any such
Management Agreement may not be modified or amended in any material respect, nor
any successor management agreement entered into, nor any management company
appointed, without Lender’s prior written approval (which shall not be
unreasonably withheld or delayed), and any attempted change to any such
Management Agreement without such consent shall be void.  Any such Management Agreement and any
successor management agreement, and any liens and rights to payment to which
the manager under any such Management Agreement or any successor management agreement
may be entitled, shall be expressly subordinate to the lien and to the terms
and conditions of the Portfolio Mortgages or terminable without cause upon
thirty (30) days’ prior written notice, and may not be modified or amended in
any material manner without Lender’s prior written approval, which approval
shall not be unreasonably withheld or delayed. 
Except to the extent otherwise required by applicable law, management
fees shall not constitute a lien upon the Security (as defined in the Portfolio
Mortgages).

 

24.           Financial Reporting.  On an ongoing basis, Borrower will give to
Lender the following financial statements and information, all of which reports
shall be in hardcopy and electronic format (and prepared utilizing tax basis
accounting rather than GAAP, unless Borrower elects to report using GAAP
accounting):

 

(a)           a quarterly
rent roll, delivered within twenty (20) days after the end of the calendar
quarter;

 

(b)           quarterly
financial statements including a balance sheet and a statement of revenues and
expenses, within twenty (20) days after the end of each calendar quarter;

 

(c)           annual audited
balance sheets for the Portfolio Properties and annual audited financial
statements for Borrower, within ninety (90) days after the end of each calendar
year;

 

(d)           annual capital
expenditure summaries for the Portfolio Properties, within ninety (90) days
after the end of the calendar year; and

 

(e)           such other
financial information as Lender or any rating agency may reasonably request in
writing.

 

In
addition to the regularly scheduled reports required above, Borrower agrees to
provide Lender within five (5) Business Days of a written request herefore
the following:  (i) a current rent roll,
(ii) a balance sheet and year-to-date operating statements for the Portfolio
Properties certified as accurate in all material respects by the Borrower, and
(iii) if the any Portfolio Property is operated as a shopping center, all
sales information of tenants and anchors that make 

 

35

 

up
the center (total sales and sales per square foot) and that report sales to
Borrower.  Unless an Event of Default
exists, Lender agrees not to request items (i)-(iii) above more than two (2) times
in any twelve (12) month period. 
Borrower also agrees to cooperate as reasonably requested with Lender
and Lender’s loan servicer in providing information and access to the Portfolio
Properties in connection with the annual inspection of the Portfolio
Properties, or such other inspections as Lender may reasonably require.

 

Notwithstanding
the provisions of Sections (a) and (b) above, Lender agrees to
conditionally modify such reporting requirements on the terms set forth below,
but shall retain the right, in its sole discretion and at any time and from
time to time, to reinstate such requirements of subsections (a) and (b) by
written notice to Borrower effective upon receipt by Borrower of such notice:

 

(i)            Subsection (a) above
shall be modified such that Borrower shall be required to submit the rent roll
described therein annually, instead of quarterly; and

 

(ii)           Subsection (b) above
shall be waived.

 

If
Borrower omits to prepare and deliver promptly any report required by this
Section, Lender may, following written notice to Borrower and its continuing
failure to cure within ten (10) Business Days, elect, in addition to
exercising any remedy for an Event of Default as provided for in this Loan
Agreement or any other Loan Document, to make an audit of all books and records
of Borrower, including without limitation each Borrower’s bank accounts, which
in any way pertain to the Portfolio Properties, and to prepare the statement or
statements which Borrower failed to procure and deliver.  Such audit shall be made and such statements
shall be prepared by an independent Certified Public Accountant to be selected
by Lender.  Borrower shall pay all
out-of-pocket expenses of the audit and other services, which expenses shall be
secured hereby as part of the Indebtedness and shall be immediately due and
payable with interest thereon at the Default Rate.

 

Lender
shall afford any information received pursuant to this Section the same
degree of confidentiality that Lender affords similar information proprietary
to Lender; provided, however, that Lender does not in any way warrant or
represent that such information received from Borrower will remain
confidential, and, provided further, that Lender shall have the unconditional
right to disclose, as necessary, any such information in the event Lender
sells, transfers, conveys, or assigns the Portfolio Mortgages or any portion of
the Indebtedness.

 

25.           Plans and Specifications.  Borrowers shall keep and maintain, at the
applicable Site or at Prime Borrower’s corporate office specified in the notice
provisions of this Agreement, any as-built plans and specifications for each
Site, to the extent in Borrower’s possession or control, for inspection by
Lender or its agent upon reasonable prior notice.  Upon Lender’s request, Borrowers shall also
send copies of any plans to Lender or its agent to the extent that the same are
in Borrower’s possession or control.

 

26.           Repair; Alterations; Waste;
ADA.  Borrower shall keep, or cause
to be kept, all of the Portfolio Properties in good and substantial repair, and
expressly agree that they will neither permit nor commit any physical waste
upon the Portfolio Properties, nor do any act or suffer or permit any act to be
done, whereby the lien of the Portfolio Mortgages  may be impaired and 

 

36

 

shall comply, or cause the
compliance, in all material respects with all zoning laws, building codes,
subdivision laws, environmental laws, and other laws, ordinances, rules and
regulations made or promulgated by any government or municipality, or by any
agency thereof or by any other lawful authority, which are now or may hereafter
become applicable to the Portfolio Properties. 
Subject to the provisions of Sections 12, 13 and 14, Borrower shall
repair or restore, or cause the repair or restoration of, any building now or
hereafter under construction on the Portfolio Properties and shall complete, or
cause the completion of, the same within a reasonable period of time.  Borrower shall not initiate or acquiesce in
any zoning variance or reclassification, without Lender’s prior written
consent.  Except to the extent required
under any Lease approved by Lender or otherwise entered into in accordance with
the Loan Documents or as required by applicable law, Borrower shall not
construct any additional building or buildings or make any other material improvements
on the Land, nor materially alter, remove or demolish any building or other
Improvements on the Land, without the prior written consent of Lender, which
shall not be unreasonably withheld, conditioned, or delayed.

 

Without
limiting the generality of the foregoing, Borrower covenants that the Portfolio
Properties, to the extent applicable, and any additions or alterations thereto,
shall be maintained in material compliance with the provisions of the Americans
with Disabilities Act of 1990, including all regulations promulgated
thereunder, as heretofore and hereinafter amended (the “ADA”), except
for any non-compliance disclosed in writing to Lender before the date hereof
(or, with respect to any Additional Portfolio Property, disclosed before the
Additional Advance with respect to such Additional Portfolio Property).  Furthermore, Borrower shall keep Lender
informed from time to time if changed circumstances require Borrower to
implement actions to ensure compliance with the ADA.

 

If
Borrower fails to observe any of the provisions of this Section, or suffers or
permits any Event of Default to exist under this Section, Lender or a lawfully
appointed receiver of the Portfolio Properties at its option, from time to
time, may, after written notice to Borrower and its continuing failure to cure
within thirty (30) days of such notice (except in the case of an emergency,
where no notice or cure period shall be applicable), perform, or cause to be
performed, any and all repairs and such other work as it deems necessary to
bring the Portfolio Properties into compliance with the provisions of this Section and
may enter upon the Portfolio Properties for any of the foregoing purposes, and
Borrower hereby waives any claim against Lender and/or such receiver, arising
out of such entry or out of any other act carried out pursuant to this
Section.  If Borrower has commenced and
is diligently pursuing any required cure under this Section, the time for
Borrower to complete such cure shall be extended as reasonably necessary, not
to exceed a total of one hundred twenty (120) days.   Borrower shall upon demand repay to Lender
and such receiver, with interest at the Default Rate, all amounts expended or
incurred by them, respectively, in connection with any action taken pursuant to
this Section, and such repayment shall be secured by the lien of the Portfolio
Mortgages.

 

Borrower
hereby covenants to maintain as part of the Portfolio Properties, at all times
during the term of the Loan, the greater of: (a) the current number of
parking spaces per Site, or (b) sufficient parking spaces to comply with
all applicable governmental and private laws, rules, regulations, ordinances,
approvals and agreements, any applicable ground lease of a Site and all Leases.

 

37

 

27.           [Intentionally deleted].

 

28.           General Reserve Escrow
Agreement.  Borrower
and Lender have entered into a General Reserve Escrow and Security Agreement of
even date herewith (the “General Reserve Escrow Agreement”), the terms
of which provide for monthly deposits of an amount equal to eight (8) basis
points of the principal balance of the Loan outstanding from time to time (the “Monthly
Reserve Deposit”) into an escrow account (the “Reserve Escrow Account”)
for the purpose of establishing a reserve for replacement and third party
capital costs, including, but not limited to, repairs, replacements, tenant
improvements, and leasing commissions, subject to the Deposit Threshold, all as
more particularly provided in the General Reserve Escrow Agreement.  The General Reserve Escrow Agreement is an
additional Loan Document, and the obligations thereunder are secured by the
Portfolio Mortgages and the other Loan Documents.

 

29.           Event of Default.  Each of the following shall constitute an
event of default (“Event of Default”) hereunder:

 

(a)           Monetary and Performance
Defaults.

 

(i)            Failure to make
(A) any scheduled Monthly Payment due under the Portfolio Note (other than
the final payment and Prepayment Fee) on or before the fifth (5th) Business Day after such
payment is due, (B) the final payment and Prepayment Fee under the
Portfolio Note when due, whether at maturity, by reason of acceleration, as
part of a prepayment or otherwise, or (C) any scheduled escrow payment due
under any Loan Document within five (5) Business Days after such payment
is due; or

 

(ii)           Breach or
default in the performance of any of the other monetary or non-monetary
covenants or agreements of Borrowers contained herein or in any of the Loan
Documents (“Performance Default”), if such Performance Default shall
continue for thirty (30) days or more after written notice to a Borrower from
Lender specifying the nature of the Performance Default; provided, however,
that if such Performance Default is of a nature that it cannot be cured within
the thirty (30) day period, then Borrower shall not be in default so long as
Borrower have commenced and thereafter diligently pursue such cure to
completion and provided further that such cure occurs within a reasonable
period of time but in no event greater one hundred twenty (120) days after the
date of the original written notice of the Performance Default.   Notwithstanding the foregoing, if the breach
or default is one that is defined as an Event of Default elsewhere in any of
the Loan Documents, then Borrower shall not be entitled to any notice or cure
period upon the occurrence of such breach or default except for such notice and
cure periods, if any, as may be expressly granted in such other defined Event
of Default; or

 

(iii)          any Borrower
changes its name, its organizational identification number, if it has one, its
type of organization, or its jurisdiction of organization without giving Lender
thirty (30) days’ prior notice.

 

(b)           Bankruptcy, Insolvency,
Dissolution.

 

(i)            Any court of
competent jurisdiction shall enter an order (A) adjudicating any Borrower
or any general partner of any Borrower bankrupt or insolvent,

 

38

 

(B) appointing
a receiver, trustee or liquidator of any of the Portfolio Properties or of a
substantial part of the property of any Borrower or any general partner of any
Borrower, or (C) approving a petition for, or effecting an arrangement in
bankruptcy, or any other judicial modification or alteration of the rights of
Lender or of other creditors of any Borrower or any general partner of any
Borrower, in each case unless such order is discharged,
stayed or dismissed within one hundred and twenty (120) day; or

 

(ii)           any Borrower or
any general partner of any Borrower shall (A) apply for or consent to the
appointment of a receiver, trustee or liquidator for it or for any of its
property, (B) as debtor, file a voluntary petition in bankruptcy, or
petition or answer seeking reorganization or an arrangement with creditors or
to take advantage of any bankruptcy, reorganization, insolvency, readjustment
of debt, dissolution or liquidation law or statute, or an answer admitting the
material allegations of a petition filed against it and any proceeding under
such law, (C) admit in writing an inability to pay its debts as they
mature, or (D) make a general assignment for the benefit of creditors; or

 

(iii)          An involuntary
petition in bankruptcy is filed against any Borrower or any general partner of
Borrower and the same is not vacated or stayed within one hundred and twenty
(120) days of the filing date.

 

(c)           Misrepresentation.  Any Borrower makes or furnishes a
representation, warranty, statement, certificate, schedule and/or report to
Lender in or pursuant to any of the Loan Documents that is false or misleading
in any material respect as of the date made or furnished; provided, however,
that if such misrepresentation was unintentional and is susceptible of cure, Borrower
shall have thirty (30) days following written notice from Lender to cure the
same to Lender’s reasonable satisfaction (for purposes of the foregoing, the
term “material respect” shall mean that the information which is false
or misleading, if fairly presented, would reflect a material adverse change in
the value, financial condition or operations of the Prime Borrower from that
which was represented or warranted).

 

(d)           Breach of Due on Sale or
Encumbrance Provision.  Any
occurrence of a prohibited Transfer or voluntary encumbrance under Section 16
hereof, except to the extent otherwise allowed by the Loan Documents.

 

(e)           Other Loan Documents.  An “Event of Default” shall have occurred
under or as defined in any of the Portfolio Notes, the Portfolio Mortgages or
the other Loan Documents after any applicable notice and cure period (if any).

 

30.           Remedies.  If an Event of Default shall occur, Lender
shall have all of the rights and remedies available to it under any one or more
or all of the Portfolio Notes, the Portfolio Mortgages and the other Loan
Documents, at law, in equity, or by statute. 
No remedy herein conferred upon or reserved to Lender is intended to be
exclusive of any other remedy provided in the Loan Documents or by law, but
each shall be cumulative and shall be in addition to every other remedy given
under the Loan Documents or now or hereafter existing at law or in equity or by
statute.  No delay or omission of Lender
to exercise any right or power accruing upon any Event of Default shall impair
any right or power or shall be construed to be a waiver of any Event of Default
or any acquiescence therein.  Every power
and remedy given by any one or 

 

39

 

more of the Portfolio Notes,
the Portfolio Mortgages and the other Loan Documents to Lender may be exercised
separately, successively or concurrently from time to time as often as may be
deemed expedient by Lender.  Lender may
exercise its remedies under any one or more of the Loan Documents and not under
others at its sole discretion.

 

31.           Acceleration Interest.  In addition to any late payment charge which
may be due under the Notes, this Loan Agreement, the Portfolio Mortgages or any
other Loan Document (but without duplication thereof), following an Event of
Default all sums due hereunder or under any other Loan Document shall bear
interest at a rate (the “Default Rate”) equal to the lesser of
(a) the interest rate set forth in the Notes plus four percent (4%) per
annum, or (b) the maximum rate permitted by law, from and after the first
to occur of the following events: (i) if Lender elects to cause the
acceleration of the Indebtedness; (ii) if a petition under Title 11 of the
Bankruptcy Code, shall be filed by or against Borrower or if Borrower shall
seek or consent to the appointment of a receiver or trustee for itself or for
any of the Portfolio Properties, file a petition seeking relief under the
bankruptcy or other similar laws of the United States, any state or any
jurisdiction, make a general assignment for the benefit of creditors, or be
unable to pay its debts as they become due; (iii) if a court shall enter
an order, judgment or decree appointing, with or without the consent of
Borrower, a receiver or trustee for any of them or for any of the Portfolio
Properties or approving a petition filed against Borrower which seeks relief
under the bankruptcy or other similar laws of the United States, any state or
any jurisdiction, and any such order, judgment or decree shall remain in force,
undischarged or unstayed, sixty (60) days after it is entered; or (iv) if
all sums due hereunder are not paid on the Maturity Date as set forth in the
Note.

 

32.           Late Charge.  If any scheduled Monthly Payment due under
the Notes or scheduled escrow payment is not paid when due, without regard to
any notice and/or grace period, Borrower shall pay to Lender a one-time late
charge equal to the lesser of four percent (4%) of such installment or the
maximum amount allowed by law, as the reasonable estimate by Lender and
Borrower of a fair average compensation for the loss that may be sustained by
Lender due to the failure of Borrower to make timely payments, and such amount
shall be secured hereby, provided that such late charge shall in no event apply
to the principal balance of the Loan at maturity or upon acceleration following
an Event of Default.  Such late charge
shall be paid without prejudice to the right of Lender to collect any other
amounts provided to be paid or to declare an Event of Default under this Loan
Agreement or any other Loan Document.

 

33.           Estoppel Certificate.  Borrower, within fifteen (15) days after
written request from Lender, will furnish a signed statement in writing, duly
acknowledged, of the amount then due or outstanding hereunder and whether or
not, to Borrower’s actual knowledge, any offsets or defenses exist against the
Indebtedness, and if so, specifying such offsets and defenses.  Upon request by Lender, Borrower shall use
commercially reasonable efforts to exercise any right it may have to request an
estoppel certificate from any or all of the tenants of the Portfolio Properties
within ten (10) Business Days following Lender’s reasonable request,
provided that so long as there is no uncured Event of Default, Lender shall not
request an estoppel certificate from any tenant more than once in any twelve
(12) month period.

 

34.           Nonrecourse.  No direct or indirect owner of any Borrower,
nor any officer, director, manager, advisor, trustee, employee, agent or
representative of any Borrower, shall be personally liable for the payment of
any Indebtedness due hereunder or under the other Loan 

 

40

 

Documents or for the
performance of any obligations of any Borrower hereunder or under the other Loan
Documents, nor, except as expressly provided below in this Section 34,
shall any Borrower be personally liable for such obligations.  Except as provided below, no judgment for the
repayment of the Indebtedness or interest thereon will be enforced against any
Borrower personally or against any property of any Borrower other than the
Security and any other security furnished under the Loan Documents in any
action to foreclose the Portfolio Mortgages
or to otherwise realize upon any security furnished under the Loan Documents or
to collect any amount payable hereunder or under the other Loan Documents.

 

Nothing
herein contained, however, shall be construed as prohibiting Lender from
exercising any and all remedies which the Loan Documents permit, including,
without limitation, the right to bring actions or proceedings against any
Borrower and to enter a judgment against any Borrower, so long as the exercise
of any remedy does not extend to execution against or recovery out of any
property other than the Security furnished to Lender under any of the Loan
Documents.

 

Notwithstanding
any of the foregoing, except as set forth in this Loan Agreement:

 

(a)           Borrowers shall be fully and
personally liable for the following acts and omissions to the extent shown
below, after any applicable notice and cure periods (if any) set forth herein
or in any applicable Loan Documents:

 

 

	
  ACT
  OR OMISSION:

  	
   

  	
  LIABILITY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
  Any Borrower
  misappropriates any condemnation or insurance proceeds attributable to the
  Real Property,

  	
   

  	
  To the extent of such
  misappropriation;

  
	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
  Any Borrower
  misappropriates any security deposits or reserves attributable to the Real
  Property,

  	
   

  	
  To the extent of such
  misappropriation;

  
	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
  Any Borrower collects
  rents in advance in violation of any covenant under the Loan Documents,

  	
   

  	
  To the extent of such
  rents collected in advance;

  
	
   

  	
   

  	
   

  	
   

  
	
  (iv)

  	
  Any Borrower commits any
  (1) fraud, (2) intentional and material misrepresentation, (3) grossly
  negligent misrepresentation, or (4) physical waste of the Real Property,

  	
   

  	
  To the extent of any
  remedies available at law or in equity;

  

 

41

 

	
  ACT
  OR OMISSION:

  	
   

  	
  LIABILITY:

  
	
   

  	
   

  	
   

  	
   

  
	
  (v)

  	
  Gross revenues from the
  Real Property are sufficient to pay any regularly scheduled payment of the
  Indebtedness then due and payable, operating and maintenance expenses
  (including real estate taxes) then due and payable, insurance premiums then
  due and payable, deposits then required to be made into a reserve account, or
  other sums then required to be paid by the Loan Documents, and any Borrower
  fails to make such payments or deposits when due,

  	
   

  	
  To the extent of any funds
  diverted by any Borrower (or anyone acting on such Borrower’s behalf) from
  such payments or expenses during the period six (6) months prior to
  Lender’s notice of acceleration through the date Lender takes title to the
  Real Property; and

  
	
   

  	
   

  	
   

  	
   

  
	
  (vi)

  	
  Any Borrower or, to the
  extent applicable, any tenant under a Lease that is obligated to maintain
  insurance pursuant to the terms of such Lease, fails to maintain the levels,
  coverages and maximum deductibles of insurance required under the Loan
  Documents, to the extent that a casualty or liability occurs or arises and
  insurance proceeds would have been available had such insurance been
  maintained,

  	
   

  	
  In the amount of the loss
  incurred as the result of such uninsured casualty or uninsured liability.

  

 

(b)           There shall be no limitation
on or prejudice to the rights of Lender to proceed against any person or
entity, including, without limitation, any Borrower, or on the exercise of any
of Lender’s rights under any indemnity from Borrower to Lender;

 

(c)           There shall be no limitation
on or prejudice to the rights of Lender to proceed against any entity or person
whatsoever, including, without limitation, any Borrower, with respect to the
enforcement of any guarantees of the Indebtedness or other sums due hereunder
or under any of the other Loan Documents or any part thereof, any master
leases, or any similar rights of payment.

 

35.           Notices.  Any notice, demand, request, statement,
consent or other communication made hereunder shall be in writing, signed by
the party giving such notice, request, demand, statement, consent or other
communication, and shall be deemed to have been properly given when either
delivered personally (whether or not refused by the recipient), delivered to a
reputable overnight delivery service providing a receipt or deposited in the
United States mail, postage prepaid and registered or certified return receipt
requested, at the address set forth below, or at such other address within the
continental United States of America as may have theretofore have been
designated in writing.  The effective
date of any notice given as aforesaid shall be the date of personal service or
refusal thereof, one (1) Business Day after

 

42

 

delivery to such overnight
delivery service, or three (3) Business Days after being deposited in the
United States mail, whichever is applicable. 
For purposes hereof, the addresses are as follows:

 

If
to Lender:

 

Connecticut
General Life Insurance Company

c/o
CIGNA Investments, Inc.

900
Cottage Grove Road, Wilde Building

Hartford,
CT 06152

Attn:  Debt Asset Management, A4CRI

 

With copies to:

 

CIGNA Corporation 

900 Cottage Grove Road, Wilde Building

Hartford, CT  06152

Attn:  Real Estate Law, A5LGL

 

and

 

Nutter, McClennen &
Fish, LLP

155 Seaport Boulevard

Boston, Massachusetts
02210-2604

Attn:  Beth H. Mitchell, Esq.

 

If to Borrower:

 

c/o STAG Capital Partners,
LLC

99 Chauncy Street

Boston, MA 02111

Attn:  Benjamin S. Butcher

 

and

 

c/o GI Partners

2180 Sand Hill Road, Suite 210

Menlo Park, CA 94025

Attn:  Alexander Fraser

 

43

 

With copies to:

 

c/o STAG Capital Partners,
LLC

99 Chauncy Street

Boston, MA 02111

Attn:  General Counsel

 

and

 

DLA Piper LLP (US)

33 Arch Street

Boston, MA 02110

Attn:  Barbara A. Trachtenberg, Esq.

 

and

 

Paul Hastings Janofsky &
Walker LLP

695 Town Center Drive, 17th Floor

Costa Mesa, CA 92626

Attn:  John Simonis, Esq.

 

36.           Participation.  Borrowers
acknowledge that Lender may sell, transfer or assign the Portfolio Loan, or any
interest therein (whether by the issuance of participation certificates in
private unrated transactions, or in connection with a securitization of the
Portfolio Loan individually or as part of a pool of loans in a public or
private rated transaction, or otherwise). 
In connection therewith, Borrowers agree that Lender shall be entitled
to disclose, as Lender may deem necessary or desirable, to any and all
investors, purchasers, transferees, servicers, participants, investors, rating
agencies or organizations maintaining databases on the underwriting and
performance of commercial mortgage loans, all documents and information that
Lender has or may hereafter acquire relating to the Portfolio Loan, whether
furnished by Borrowers or any guarantor or indemnitor.  Upon the assignment and assumption of the
entire outstanding portion of the Portfolio Loan, the assigning Lender shall
thereafter be released from its obligations and liability hereunder arising
from and after such assignment. 
Borrowers agree that all of the rights and remedies of Lender in
connection with the interest so assigned shall be enforceable against Borrowers
by such assignee with the same force and effect and to the same extent as the
same would have been enforceable by the assigning Lender but for such
assignment.  Notwithstanding anything in Section 37
hereof or any other provision of the Loan Documents, (a) in no event shall
Borrowers bear or be responsible for any costs of Lender incurred in connection
with any assignment, participation, securitization, syndication or any similar
transaction engaged in by Lender in connection with the Loan and (b) Lender
named herein agrees to retain primary servicing responsibility for the Loan
until the expiration of the Advancement Period.

 

37.           Lender Costs and Expenses.  Lender agrees that any cost, fee, expense or
other charge (including attorneys’ fees and expenses) for which Lender seeks or
is entitled to reimbursement from Borrowers or any related party under or in
connection with the Loan Documents shall be reasonable in amount, except that
no such limitation shall apply to any cost,

 

44

 

fee, expense or other charge
(including attorneys’ fees and expenses) that arise after the occurrence and
continuance of, or are incurred in connection with or as a result of, an Event
of Default.  Whenever a Borrower’s
payment of Lender’s attorneys’ fees is referred to or required in the Loan
Documents, such reference to “attorneys’ fees” shall be deemed to refer to the
fees and expenses of Lender’s outside counsel and Lender’s in-house or staff
counsel.

 

38.           Further Assurances.  Each Borrower, from time to time, will
execute, acknowledge, subscribe and deliver to or at the direction of Lender
such documents and further assurance as Lender may reasonably require for the
purpose of evidencing, perfecting or confirming the lien and security interest
created by the Portfolio Mortgages or the security to be afforded by the other
Loan Documents, provided that in no case shall any such document or further
assurance materially increase the obligations or materially decrease the rights
of any Borrower under the Loan Documents. 
Without limiting the foregoing and notwithstanding anything in the
Portfolio Mortgages or other Loan Documents to the contrary, Borrowers hereby
jointly and severally defend, indemnify and hold Lender harmless with respect
to any suit or proceeding in which the validity, enforceability or priority of
any such lien or security interest, or both, is endangered or contested,
directly or indirectly.  If Borrowers
fail to undertake the defense of any such claim in a timely manner or, in
Lender’s sole determination, fail to prosecute such defense with due diligence,
then, after ten (10) Business Days’ notice to Borrowers, Lender is
authorized to take, at the sole expense of Borrowers, all necessary and proper
action in defense of any such claim, including, without limitation, the
retention of legal counsel, the prosecution or defense of litigation and the
compromise or discharge of claims, including payment of all costs and attorneys’
and paralegals’ fees.  All costs,
expenses and losses, if any, so incurred by Lender, including all attorneys’
and paralegals’ fees, regardless of whether suit is brought, for all
administrative, trial and appellate proceedings, if any, will constitute
advances by Lender as provided in the Portfolio Mortgages.

 

39.           Continued Existence.  Each Site Borrower shall at all times during
the Term (as defined in the Note) of the Portfolio Loan maintain its legal
existence and qualification to do or transact business in the state in which
the Site it owns is located.  So long as
any portion of the Portfolio Loan remains outstanding, each Borrower will
provide Lender with thirty (30) days’ prior written notice of any change in
such Borrower’s name, organizational identification number, state of
organization or, if any individual, principal residence.

 

40.           Rights Personal to Borrowers.  The rights granted to Borrowers in this Loan
Agreement shall be personal to Borrowers and shall not inure to the benefit of
any subsequent owner of any of the Portfolio Properties, except in the case of
a transfer permitted in accordance with the terms of the Loan Documents.

 

41.           Master Loan Agreement
Governs.  In the event of any conflict
or inconsistency between the terms and provisions hereof and those of any of
the other Loan Documents (including, without limitation, the Commitment), the
terms and provisions hereof shall govern and control to the extent of such
conflict or inconsistency.

 

45

 

42.           Miscellaneous.

 

(a)           Amendment and Waiver.  This Agreement may not be amended except by a
writing signed by Lender and Borrowers, nor shall observance of any term of
this Agreement be waived except with the written consent of the Lender.

 

(b)           Governing Law.  Except as may be otherwise expressly provided
in this Loan Agreement or in any other Loan Document, all claims relating, in
any way, to the negotiation and/or consummation of the Portfolio Loan, Lender’s
relationship with Borrower in connection with the Portfolio Loan and/or the
performance of any obligation under this Loan Agreement or any of the other
Loan Documents shall in all respects be governed, construed, applied and
enforced in accordance with the internal laws of the Commonwealth of
Massachusetts (the “State”) without regard to principles of conflicts of
law.  Notwithstanding the foregoing
choice of law:

 

(a)           the procedures
governing the creation, perfection and priority of the liens pertaining to the
Security and the enforcement by
Lender of its rights and remedies under the Portfolio Mortgages and the other
Loan Documents with respect to the Security, including without limitation,
actions for foreclosure, for injunctive relief or for appointment of a
receiver, shall be governed by the laws of the state where the Security is located;
and

 

(b)           Lender shall
comply with applicable law in the state where the Security is located to the
extent required by the law of such jurisdiction in connection with the
foreclosure of the liens created by the Portfolio Mortgages and the other Loan
Documents with respect to the Security.

 

Nothing
contained herein or in any provisions of the other Loan Documents shall be
construed to provide that the substantive law of the state where the Security
is located shall apply to any parties’ rights and obligations under any of the
Loan Documents, which, except as expressly provided above, are and shall
continue to be governed by the substantive law of the State.  In addition, the fact that portions of the
Loan Documents may include provisions drafted to conform to the law of the
state where the Security is located is not intended, nor shall it be deemed, in
any way, to derogate the parties’ choice of law as set forth or referred to in
this Loan Agreement or in the other Loan Documents.  The parties further agree that, subject to
clauses (a) and (b) above, Lender may enforce its rights under the
Loan Documents, including, without limitation, its rights to sue Borrower or to
collect any outstanding Indebtedness in accordance with the State law.

 

Borrower
hereby consents to personal jurisdiction in any state or federal court located
within the State, as well as to the jurisdiction of all courts from which an
appeal may be taken from the courts within the State, for the purposes of any
suit, action or other proceeding arising out of, or with respect to, any of the
Loan Documents, the negotiation and/or consummation of the Portfolio Loan,
Lender’s relationship with Borrower in connection with the Portfolio Loan
and/or the performance of any obligation or the exercise of any remedy under
any of the Loan Documents, and expressly waives any and all objections it may
have as to venue in any of such courts.

 

46

 

(c)           Waivers.  With respect to the cross-collateralization
of all or any portion of the Indebtedness as provided in this Loan Agreement,
each Borrower hereby acknowledges that it is receiving a direct and substantial
benefit from the Portfolio Loan, as a whole, and is receiving fair and adequate
consideration for granting the Portfolio Mortgages to secure the entire
Indebtedness, and each Borrower waives any right to require Lender to:  (i) proceed against any other Borrower
regarding any of the Indebtedness, or (ii) pursue any other remedy in
Lender’s power whatsoever.  Each Borrower
waives any defenses to the enforceability of this Loan Agreement, including,
without limitation by reason of any disability or other defense of any other
Borrower.  Until the complete payment and
performance of all of the Indebtedness, each Borrower hereby waives any right
of subrogation arising against any other Borrower in connection with the
payment and/or performance of the Indebtedness and Lender’s enforcement of any
rights and remedies hereunder.  Each
Borrower also hereby waives any right to enforce any remedy which Lender now
has or may hereafter have against any other Borrower, and hereby waives any
benefit of rights to participate in any security now or hereafter held by
Lender.  Each Borrower hereby waives any
right or claim of right to cause a marshalling of the assets of any other
Borrower.  No delay on the part of Lender
in the exercise of any right, power or privilege under any documentation with
any Borrower hereunder shall operate as a waiver of any such privilege, power
or right.  Each Borrower hereby waives
notice of acceptance hereof and reliance hereon, notice of any action taken or
omitted by Lender in reliance hereon, suretyship defenses, presentment, demand,
protest, notice of nonpayment, notice of dishonor, protest of any dishonor,
notice of protest and giving notice of:

 

(X)          any default by any other
Borrower under any of the applicable Loan Documents or the assertion of any
right of Lender thereunder or hereunder;

 

(Y)           all other notices (except as
otherwise expressly provided in the Loan Documents) in connection with the
delivery, acceptance, performance, default or enforcement of the payment and
performance of the Indebtedness; and

 

(Z)           notices of the existence,
creation or incurring of new or additional indebtedness, liabilities,
covenants, obligations or agreements which shall be included in the
Indebtedness.

 

(d)           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, and all of which
taken together shall constitute one and the same agreement.

 

(e)           Severability.  All provisions contained in this Agreement
are severable and the invalidity or unenforceability of any provision shall not
affect or impair the validity or enforceability of the remaining provisions of
this Agreement.

 

(f)            Headings.  The descriptive headings of the Sections of
this Agreement are inserted for convenience only and do not constitute a part
of this Agreement.

 

(g)           Loan Documents.  This Loan Agreement shall constitute one of
the Loan Documents.

 

47

 

(h)           Joint and Several
Obligations.  All
obligations of Borrowers hereunder or under the Portfolio Notes, the Portfolio
Mortgages and any of the other Loan Documents shall be the joint and several obligations
of Prime Borrower and every Site Borrower.

 

(i)            WAIVER OF
TRIAL BY JURY. 
BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY
JURY AS TO ANY MATTER ARISING OUT OF OR CONCERNING THE SUBJECT MATTER OF THIS
LOAN AGREEMENT.

 

(j)            Business Days.  As used herein or in any other Loan Document,
the term “Business Day” means any day other than (i) a Saturday, Sunday or
federal or state holiday or any day on which the U.S. Postal Service offices
are closed for business in Hartford, Connecticut or Boston, Massachusetts, or
both, (ii) a day on which banking institutions in Boston, Massachusetts
and/or Hartford, Connecticut are obligated or authorized by law or executive
action to be closed to the transaction of normal banking business, or (iii) a
day on which governmental functions in the Boston, Massachusetts and/or
Hartford, Connecticut are interrupted because of extraordinary events such as
hurricanes, blizzards, power outages or acts of terrorism.  Whenever the time of performance of any obligation
under this Agreement or any other Loan Document falls on a day that it not a
Business Day, the time for performance shall be extended until the next
Business Day.

 

*              *              *              *              *

 

[Signature
Page Follows]

 

48

 

IN WITNESS WHEREOF, this
Loan Agreement has been executed as of the date first above written.

 

	
   

  	
  PRIME
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  STAG GI INVESTMENTS
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin S. Butcher

  
	
   

  	
   

  	
  Benjamin S. Butcher,
  President

  

 

49

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  CONNECTICUT GENERAL LIFE
  INSURANCE COMPANY, a Connecticut Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CIGNA INVESTMENTS, INC.,

  
	
   

  	
   

  	
  Its Authorized Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michele A.C. Kadis

  
	
   

  	
   

  	
   

  	
  Name: Michele A.C. Kadis

  
	
   

  	
   

  	
   

  	
  Title: Managing Director

  

 

50

 

EXHIBIT A

 

LEGAL
DESCRIPTION OF 

PORTFOLIO
PROPERTIES

 

(CITY,
STATE)

 

 

EXHIBIT B

 

SCHEDULE
OF LOAN DOCUMENTS

 

GENERAL

 

Master Loan Agreement

Real Estate Tax Escrow Account

General Reserve Escrow Account

Environmental Indemnification Agreement

 

SITES

 

(CITY, STATE)

 

Note A

Mortgage, Security Agreement and Fixture Filing

Assignment of Rents and Leases

UCC Financing Statement

Subordination, Non-Disturbance and Attornment Agreement

 

 

EXHIBIT C

 

LEASE ESTOPPEL CERTIFICATE

(OFFICE
AND INDUSTRIAL PROPERTIES)

 

Landlord:

 

Tenant:

 

Tenant
Trade Name:

 

Lender: Connecticut
General Life Insurance Company

 

Premises:

 

	
  Area:                                    Sq.Ft.

  	
  Lease Date:                             

  

 

The undersigned Landlord and
Tenant of the above-referenced lease (the “Lease”) hereby ratify the
Lease and certifies to Lender as mortgagee of the Real Property of which the
premises demised under the Lease (the “Premises”) is a part, as follows:

 

1.             That the term of the Lease
commenced on                   , 20   and
the Tenant is in full and complete possession of the Premises and has commenced
full occupancy and use of the Premises, such possession having been delivered
by the original landlord and having been accepted by the Tenant.

 

2.             That the Lease calls for
monthly rent installments of $              to date and that the Tenant is paying monthly
installments of rent of $               which commenced to accrue on the           day of                 , 20   .

 

3.             That no advance rental or
other payment has been made in connection with the Lease, except rental for the
current month, there is no “free rent” or other concession under the remaining
term of the lease and the rent has been paid to and including              , 20  .

 

4.             That a security deposit in
the amount $              is being held by Landlord, which amount is not
subject to any set-off or reduction or to any increase for interest or other
credit due to Tenant.

 

5.             That all obligations and conditions
under said Lease to be performed to date by Landlord or Tenant have been
satisfied, free of defenses and set-offs including all construction work in the
Premises.

 

6.             That the Lease is a valid
lease and in full force and effect and represents the entire agreement between
the parties; that there is no existing default on the part of the Landlord or
the Tenant in any of the terms and conditions thereof and no event has 

 

 

occurred which, with the
passing of time or giving of notice or both, would constitute an event of
default; and that said Lease has: 
(initial one)

 

o not been
amended, modified, supplemented, extended, renewed or assigned.

 

o been amended,
modified, supplemented, extended, renewed or assigned as follows by the
following described agreements:

 

 

 

 

7.             That the Lease provides for
a primary term of               months; the term of the Lease expires on the           day of            20   ;
and that:

(initial
all applicable subparagraphs)

 

o neither the
Lease nor any of the documents listed above in Paragraph 6, if any, contain an
option for any additional term or terms or an option to terminate the Lease
prior to the expiration date set forth above.

 

o the Lease
and/or the documents listed above in Paragraph 6 contain an option for           additional term(s) of            year(s) and            months(s) (each) at a rent to be determined as
follows:

 

 

 

 

o the Lease
and/or the documents listed above in Paragraph 6 contain an option to terminate
the lease prior to the date set forth above as follows:

 

 

 

 

8.             That Landlord has not
rebated, reduced or waived any amounts due from Tenant under the Lease, either
orally or in writing, nor has Landlord provided financing for, made loans or
advances to, or invested in the business of Tenant.

 

9.             That, to the best of Tenant’s
knowledge, there is no apparent or likely contamination of the Real Property or
the Premises by Hazardous Materials, and Tenant does not use, nor has Tenant
disposed of Hazardous Materials in violation of Environmental Laws on the Real
Property or the Premises.

 

C-2

 

10.          That there are no actions,
voluntary or involuntary, pending against the Tenant under the bankruptcy laws
of the United States or any state thereof.

 

11.          That this certification is
made knowing that Lender is relying upon the representations herein made.

 

 

	
  Tenant:

  	
   

  	
   

  	
  Landlord:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Typed Name:

  	
   

  	
   

  	
  Typed Name:

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Typed Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

C-3

 

EXHIBIT D

 

SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

Tenant
Name:                                  

Trade
Name:                                   

Room/Unit
No.:                                

 

THIS
AGREEMENT is dated the       day of                     , 20  , and is made by and among CONNECTICUT
GENERAL LIFE INSURANCE COMPANY, having an address c/o CIGNA Investments, Inc.,
Wilde Building, A4-CR1, 900 Cottage Grove Road, Hartford, Connecticut  06152, Attn: 
Debt Asset Management (“Mortgagee”),                           , d/b/a                               , having an
address of                                (“Tenant”), and                                 , having an
address of                                (“Landlord).

 

RECITALS:

 

A.            Tenant has entered into a
lease (“Lease”) dated                      with                      as lessor (“Landlord”), covering the premises
known as                      (the “Premises”) within the property known as                     , more particularly described as
shown on Exhibit A, attached hereto (the “Real Property”).

 

B.            Mortgagee has agreed to make
or has made a mortgage loan in the amount of                      to Landlord, secured by a mortgage of the Real
Property (the “Mortgage”), and the parties desire to set forth their agreement
herein.

 

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

 

1.             The Lease and all
extensions, renewals, replacements or modifications thereof are and shall be
subject and subordinate to the Mortgage and all terms and conditions thereof
insofar as it affects the Real Property of which the Premises form a part, and
to all renewals, modifications, consolidations, replacements and extensions
thereof, to the full extent of amounts secured thereby and interest thereon.

 

2.             Tenant shall attorn to and
recognize any purchaser at a foreclosure sale under the Mortgage, any
transferee who acquires the Premises by deed in lieu of foreclosure, and the
successors and assigns of such purchaser(s), as its landlord for the unexpired
balance (and any

 

 

extensions, if exercised) of
the term of the Lease on the same terms and conditions set forth in the Lease.

 

3.             If it becomes necessary to
foreclose the Mortgage, Mortgagee shall neither terminate the Lease nor join
Tenant in summary or foreclosure proceedings for the purpose of terminating the
Lease so long as Tenant is not in default under any of the terms, covenants, or
conditions of the Lease beyond any applicable notice and cure periods.

 

4.             If Mortgagee succeeds to the
interest of Landlord under the Lease, Mortgagee shall not be: (a) liable for
the return of any security deposit unless such deposit has been delivered to
Mortgagee by Landlord or is in an escrow fund available to Mortgagee, (b) bound
by any rent or additional rent that Tenant might have paid for more than the
current month to any prior landlord (including Landlord), (c) bound by any
amendment, modification, or termination of the Lease made without Mortgagee’s
prior written consent (which consent shall not be unreasonably withheld or
delayed), or (d) personally liable under the Lease, Mortgagee’s liability
thereunder being limited to its interest in the Real Property.

 

5.             This Agreement shall be
binding on and shall inure to the benefit of the parties hereto and their
successors and assigns.

 

6.             Tenant shall give Mortgagee,
by commercial overnight delivery service, a copy of any notice of default
served on Landlord at the same time such notice is sent to the Landlord,
addressed to Mortgagee at Mortgagee’s address set forth above or at such other
address as to which Tenant has been notified in writing.  Mortgagee shall have the right, but not the
obligation, to cure such default within the time period specified in the Lease.

 

7.             Landlord has agreed under
the Mortgage and other loan documents that rentals payable under the Lease
shall be paid directly by Tenant to Mortgagee upon default by Landlord under
the Mortgage.  After receipt of notice
from Mortgagee to Tenant, at the address set forth above or at such other
address as to which Mortgagee has been notified in writing, that rentals under
the Lease should be paid to Mortgagee, Tenant shall pay to Mortgagee, or at the
direction of Mortgagee, all monies due or to become due to Landlord under the
Lease.  Tenant shall have no
responsibility to ascertain whether such demand by Mortgagee is permitted under
the Mortgage, or to inquire into the existence of a default.  Landlord hereby waives any right, claim, or
demand it may now or hereafter have against Tenant by reason of such payment to
Mortgagee, and any such payment shall discharge the obligations of Tenant to
make such payment to Landlord.

 

D-2

 

IN
WITNESS WHEREOF, the parties hereto have executed these presents as of the day
and year first above written.

 

 

	
  WITNESSES:

  	
   

  	
  MORTGAGEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONNECTICUT GENERAL LIFE
  INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:     CIGNA
  Investments, Inc., its authorized representative

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Its:

  
						

 

D-3

 

 

STATE OR COMMONWEALTH OF                 

COUNTY OF                                

 

On this, the       day
of                 , 20   , before me, the undersigned officer,
personally appeared                        , who acknowledged
himself/herself to be the                              of                            , and signed the
foregoing instrument for the purposes therein contained as his/her free act and
deed and the free act and deed of such entity.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal the day and year aforesaid.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My Commission Expires:

  

 

STATE OR COMMONWEALTH OF                 

COUNTY OF                                

 

On this, the       day
of                 , 20   , before me, the undersigned officer,
personally appeared                        , who acknowledged
himself/herself to be the                              of                            , and signed the
foregoing instrument for the purposes therein contained as his/her free act and
deed and the free act and deed of such entity.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal the day and year aforesaid.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My Commission Expires:

  

 

STATE OR COMMONWEALTH OF                 

COUNTY OF                                

 

On this, the       day
of                 , 20   , before me, the undersigned officer,
personally appeared                        , who acknowledged
himself/herself to be the                              of                            , and signed the foregoing
instrument for the purposes therein contained as his/her free act and deed and
the free act and deed of such entity.

 

IN WITNESS WHEREOF, I
hereunto set my hand and official seal the day and year aforesaid.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My Commission Expires:

  

 

D-4

 

EXHIBIT E

 

SURVEY
REQUIREMENTS

 

The following information
should be included on the Survey:

 

1.             Scale

2.             Date

3.             North arrow

4.             Legend

5.             Encroachments

6.             Adjoining street, road
highway, alleys, right-of-way lines, names, right-of-way width, and distance to
property.

7.             All points of reference
should be tied to an identifiable monument or intersection of streets.

8.             Delineate all improvements
in place and show their measurements:

(a)           Boundaries (all
property line deflection points must have an iron pin set in place).  All boundary distances should be expressed in
feet and hundredths of feet, all courses in degrees, minutes and seconds.

(b)           Utilities (including
connecting lines to this project from public utility lines).

(c)           Pavement and
paved parking area, including size and number of spaces (please shade edges and
show parking space lines).

(d)           Walkways (please “dot”
concrete).

(e)           Ingress and egress (curb
cuts and driveways).

(f)            Buildings, signs,
structures.

9.             Building set-back lines
shown on property (as defined by local zoning entity, plat map and/or
restrictive covenants) and any other building restrictions including the volume
and page number if recorded.

10.          Lot, block or square
designation, if applicable, and written legal description by metes and bounds
on the survey plat.

11.          Location and dimensions
(with same information as boundaries) of all easements or encroachments
identified in the Title Report together with complete recording information.

12.          Identification of all
abutting owners, lot numbers and names of subdivisions.

13.          Section, township and range
if applicable.

14.          Street address (of each
building).

15.          Area of land and area of
buildings; and distance of buildings to boundary of property and to building
line.

16.          Vicinity sketch showing
closest thoroughfare intersection.

17.          The point of beginning of
description (labeled on plat map).

18.          True point of beginning of
description (labeled on plat map).

19.          Certification of “True and
Correct” survey by surveyor to include this terminology:

“The undersigned hereby
certifies to Connecticut General Life Insurance Company, (name of partnership)
and (name of title company), as of the date hereof, that this survey correctly
shows, on the basis of a field transit survey and in accordance with the
current Minimum Standard Detail Requirements of Land Title Survey jointly
established and adopted by ALTA and ACSM: (i) a fixed and determinable position
and location of the land described thereon (including the position of the point
of beginning); (ii) the location

 

 

of all buildings, structures
and other improvements situated on the land; and (iii) all driveways or other
cuts in the curbs along any street upon which the land abuts.  Except as shown on said print of survey there
are no visible easements or rights of way affecting the land or other easements
or rights of way of which the undersigned has been advised or which are of
record nor, except as shown, are there any building restriction or set back
lines, party walls, encroachments or overhangs of any improvements upon any
easements, rights of way or adjacent land, or encroachments by improvements
located on adjacent land upon the described land.  The print of survey reflects boundary lines
of the described land which “close” by engineering calculation.

20.          Surveyor’s seal or stamp
clearly showing registration number.

21.          Original surveyor’s
signature on all copies of survey.

22.          Chart of curve
data/information to support length of curves used on survey.

23.          Curve tangent points
indicated on survey lines.

24.          Reference baseline for
azimuth used.

25.          Note whether survey has been
balanced and adjusted.

26.          Note whether a title report
was used in defining easements and other recordings.

27.          Field notes on survey if
applicable.

28.          Indicate on survey, at all
survey line deflections, whether the survey monument was found or set; such as,
“Found Iron Pin” or “Iron Pin Set”.

29.          State whether or not the
property appears in any Flood Insurance Boundary Map, and if so, further state
map number and whether or not the property appears to be in the “Flood Hazard
Area” shown on that map.

Title and/or improvements
may necessitate other requirements.

 

A second sheet to the survey
may be added, should it become too crowded or complex to show everything on one
sheet.  Both sheets should show
buildings, roads and paved areas.

 

E-2

 

EXHIBIT F

 

SURVEYOR’S
CERTIFICATE

 

“The undersigned hereby
certifies to Connecticut General Life Insurance Company, (name of partnership)
and (name of title company), as of the date hereof, that this survey correctly
shows, on the basis of a field transit survey and in accordance with the
current Minimum Standard Detail Requirements of Land Title Survey jointly
established and adopted by ALTA and ACSM: (i) a fixed and determinable position
and location of the land described thereon (including the position of the point
of beginning); (ii) the location of all buildings, structures and other improvements
situated on the land; and (iii) all driveways or other cuts in the curbs along
any street upon which the land abuts. 
Except as shown on said print of survey there are no visible easements
or rights of way affecting the land or other easements or rights of way of
which the undersigned has been advised or which are of record nor, except as
shown, are there any building restriction or set back lines, party walls,
encroachments or overhangs of any improvements upon any easements, rights of
way or adjacent land, or encroachments by improvements located on adjacent land
upon the described land.  The print of
survey reflects boundary lines of the described land which “close” by
engineering calculation.”

 

 

EXHIBIT G

 

FORM
OF OPINIONS

 

	
   

  	
  DLA Piper US LLP

  
	
   

  	
  33 Arch Street

  
	
   

  	
  Boston, Massachusetts
  02110

  
	
   

  	
  T 617.406.6000

  
	
   

  	
  F 617.406.6100

  
	
   

  	
  W www.dlapiper.com

  

 

As
of          , 20  

 

Connecticut General Life
Insurance Company

c/o CIGNA Investments, Inc.

Wilde Building, A4-CR1

900 cottage Grove Road

Hartford, Connecticut   06152

 

Re:          $63,000,000 loan (the “Loan”)
from Connecticut General Life Insurance Company (“Lender”) to the Borrowers (as
defined below)

 

Ladies and Gentlemen:

 

We
have acted as special counsel for (i) each of the entities listed on the attached
Exhibit A-1 (each a Borrower and collectively, the “Borrowers”), and (ii)
each of the entities listed on the attached Exhibit A-2 (each a “Manager”
and collectively, the “Managers”), in connection with the amendment of the
Loan.  Collectively, the Borrowers and
the Managers are referred to as the “Parties.”

 

In connection with this
opinion we have reviewed the following documents:

 

1.
            The documents
evidencing the Loan listed on the attached Exhibit B (the “Existing Loan
Documents”) and the documents amending the Loan listed on the attached Exhibit
B-1 (the “Additional Advance Documents,” and the Existing Loan Documents as
amended or affected by the Additional Advance Documents, the “Loan Documents”);

 

2.
            The
Governmental Certificates regarding the organization of the Parties attached as
Exhibit C and certain entity documents listed on the attached Exhibit
D (collectively, the “Organizational Documents”); and

 

3.
            The Opinion
Certificate attached hereto as Exhibit E (the “Opinion Certificate”).

 

 

In addition to the above we
have also examined and relied on as to matters of fact the representations and
warranties contained in the Loan Documents, the Organizational Documents, the
Opinion Certificate, and certificates or statements of public officials and officers
of the Parties and we have made no independent review or investigation of these
or any other matters. Whenever in this opinion reference is made to our “knowledge”,
such knowledge is based upon information obtained from the documents and
certificates referred to above and is limited to the actual knowledge of the
attorneys in our firm who are actively involved in representing the Parties in
connection with this transaction.  No
opinion is being expressed as to the effect of any event, fact or circumstance
of which we have no actual knowledge. 
Although we represent the Parties in connection with this transaction,
we call to your attention that our engagement has been limited to specific
matters as to which we have been consulted.

 

In examining all documents,
we have assumed the competency of all signatories, the genuineness of all
signatures, other than signatures on behalf of the Parties, the authenticity of
all documents submitted to us as originals, the conformity to the originals of
all documents furnished to us as copies and the accuracy and completeness of
all documents.

 

Our
opinions as to the legal existence and good standing of the Parties are based
solely on the Governmental Certificates referred to in Exhibit C and are
limited accordingly.  As to all such
matters, our opinions are rendered as of the respective dates of such
Governmental Certificates.

 

We
have assumed that (i) the Loan Documents have been duly authorized, executed
and delivered by the parties thereto (other than the Parties), are within their
respective powers, and are their legal, valid and binding obligation(s) and
that such parties are in compliance with all applicable laws, rules and
regulations governing the conduct of their respective businesses and this
transaction, (ii) the Loan Documents will be enforced in circumstances and in a
manner which are commercially reasonable, (iii) the parties to the Loan
Documents (other than the Parties) are not subject to any statute, rule or
regulation or any impediment that requires them, or the Parties, to obtain the
consent or to make any declaration or filing with any governmental authority or
any other person in connection with the transactions contemplated, (iv) the
correct name of the Lender is Connecticut General Life Insurance Company, (v) that
there has not been any mutual mistake of fact or understanding, fraud, duress,
coercion, or undue influence with respect to the Loan Documents; and (vi) that
all applicable Loan Documents will be duly and correctly filed, indexed and
recorded at the appropriate public records, with all applicable fees and
charges paid.

 

Our opinions are subject to
the qualifications that the legality, validity, binding effect or
enforceability of the Loan Documents are, or may be, subject to limitations on
account of (i) applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or transfer and other law, including decisional law,
heretofore or hereafter affecting the rights and remedies of debtors, creditors
and secured parties generally and to general equitable principles; (ii) the
exercise of judicial discretion and/or principles of equity and of public
policy including without limitation to availability of specific performance or
other injunctive relief; (iii) provisions in the nature of penalties,
forfeitures, waivers, rights of set off, exculpatory provisions,
indemnification and contribution provisions, and self-help rights including
rights allowing the Lender to act for or on behalf of the Borrower; (iv) such
duties as creditors and

 

G-2

 

secured parties may have to
act in good faith and in a commercially reasonable manner and (v) provisions
purporting to confer, waive or consent to the jurisdiction of any court.  Requirements in the Loan Documents specifying
that provisions may only be waived in writing or that written consents are
required may not be enforceable to the extent that an oral agreement or an
implied agreement by trade practice or course of conduct has been created modifying
any provision of such documents.  In
addition, to the extent that any mortgage, deed of trust, assignment of leases,
or similar security instrument is governed in whole or in part by the law of a
state other than Massachusetts, we express no opinion with respect to the
enforceability of such instruments under the law of such other state, and our
opinions as to the enforceability of any such security instrument under
Massachusetts law are further limited to the extent such enforcement would be
inconsistent with the laws of the state in which the applicable property is
located.

 

We express no opinion herein
as to the laws of any state or jurisdiction other than the federal laws of the
United States of America, the laws of The Commonwealth of Massachusetts, the
Delaware Limited Liability Company Act, all as in effect on the date
hereof.  The attorneys participating in
the preparation and issuance of this opinion are not authorized or qualified to
practice in the State of Delaware, and our opinions with respect to the
Delaware Limited Liability Company Act are based on our reasonable familiarity
with such laws as a result of our prior involvement in transactions concerning
such laws.  We express no opinion except
as expressly stated in this letter.  Without
limiting the foregoing, we express no opinion as to: (i) title to or ownership
of any real or personal property or the existence, priority, or perfection of
any security interest, lien or encumbrance, (ii) the compliance of the
properties now or hereafter with applicable health, safety, zoning, building,
environmental, pollution or other laws or regulations, or (iii) the application
of choice of law or conflicts of law principles or the enforceability of any
choice of law and/or governing law provisions of the Loan Documents.

 

In addition, we call your
attention to the following:

 

(i)            the effectiveness of UCC
financing statements generally lapses five years from the date of filing unless
continuation statements are properly filed within six months prior to such
lapse in accordance with Section 9-515 of Article 9 of the UCC;

 

(ii)           continued perfection of
security interests may require the filing of new appropriate financing
statements or of amendments to financing statements in the event of a change of
the name, location, or legal identity or structure of a debtor, or, in certain
cases, a change in the location of collateral;

 

(iii)          under certain circumstances
described in Section 9-315 of Article 9 of the UCC, perfection of and the
rights of a secured party to enforce a security interest in proceeds of
collateral may be limited.

 

Further, Section 552 of the
United States Bankruptcy Code (11 U.S.C. §552) limits the extent to which
property acquired by a debtor after the commencement of a case under the Bankruptcy
Code may be subject to a lien resulting from any security agreement entered
into by the debtor before the commencement of the case.

 

G-3

 

Based upon and subject to
the assumptions, limitations and qualifications set forth in this letter, it is
our opinion that:

 

1.          The Borrowers are duly
organized and validly existing Delaware limited liability companies, are in
good standing in Delaware, and each has the full power, authority and legal
right to enter into and perform the transactions contemplated for each of them
by the Additional Advance Documents to which it is a signatory.

 

2.          The Managers are duly
organized and validly existing Delaware limited liability companies and are in
good standing in Delaware, and the Managers have the full power, authority and
legal right to enter into and perform the transactions contemplated for each of
them by the Additional Advance Documents to which it is a signatory.

 

3.          Each of the Additional
Advance Documents has been duly and validly authorized, executed, acknowledged
(if appropriate) and delivered by and on behalf of each of the Parties that is
a party thereto.  To the extent governed
by Massachusetts law, each of the Loan Documents is the legal, valid and
binding obligation of each of the applicable Parties that is a party thereto,
and is enforceable against each such party thereto in accordance with its
terms.

 

4.          The execution and delivery
of the Additional Advance Documents by each of the Borrowers and the Managers
that is a signatory thereto do not, and the performance by each of the
Borrowers and the Managers of their respective obligations under the Loan
Documents will not, contravene or result in a breach of (a) any provision of
the respective Organizational Documents of each of the Borrowers or the
Managers, or (b) any presently existing provision of the laws of The
Commonwealth of Massachusetts or of federal law to which any of the Borrowers
or the Managers are subject, or (c) to our knowledge, any order, writ,
injunction, determination, decree or judgment specifically naming and binding
upon any of the Borrowers or the Managers, or (d) to our knowledge, any
agreement executed by and binding upon any of the Borrowers or the Managers.

 

5.             Under existing provisions of
law, no authorization or approval of any governmental authority of The
Commonwealth of Massachusetts or of the United States of America is necessary
in connection with the valid execution and delivery by the Borrowers or the
Managers of the Additional Advance Documents.

 

[balance
of page left blank]

 

G-4

 

This opinion is limited to
the matters stated herein and except as otherwise indicated herein, the
opinions expressed are given as of the date hereof and we disclaim any
obligation to advise you, and no opinion may be inferred beyond the matters
expressly stated, in the event of changes in applicable law or facts or if
additional information is brought to our attention.  This opinion is provided to you as a legal
opinion only and not as a guaranty or warranty of the matters discussed.  No portion of this opinion may be quoted or
in any other way published without the prior written consent of the
undersigned.  Further, this opinion may
be relied upon only by the addressee hereof, its legal counsel and its
permitted successors and assigns under the Loan Documents.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  DLA PIPER LLP (US)

  

 

	
  Exhibit A-1

  	
  List of Borrowers

  
	
  Exhibit A-2

  	
  List of Managers

  
	
  Exhibit B

  	
  List of Existing Loan
  Documents

  
	
  Exhibit B-1

  	
  List of Additional Advance
  Documents

  
	
  Exhibit C

  	
  Governmental Certificates

  
	
  Exhibit D

  	
  Entity Documents

  
	
  Exhibit E

  	
  Opinion Certificate

  

 

G-5

 

 

EXHIBIT A-1

 

Borrowers

 

G-6

 

EXHIBIT A-2

 

Managers

 

STAG GI Investments
Holdings, LLC, in its capacity as member-manager of each of the other
Borrowers.

 

G-7

 

EXHIBIT B

 

Existing
Loan Documents

 

*All documents dated as of                            ,
2010 unless otherwise noted below

 

1.                                       Master Loan
Agreement by and among STAG GI Investments Holdings, LLC (“Prime Borrower”),
and Lender.

 

2.                                       Real Estate Tax
Escrow Agreement by and among Borrower and Lender.

 

3.                                       General Reserve
Escrow Agreement by and among Borrower and Lender.

 

4.                                       Environmental
Indemnification Agreement by Borrower to Lender.

 

[List any previous
amendments to the Loan Documents]

 

G-8

 

EXHIBIT B-1

 

Additional
Advance Documents

 

*All documents dated as of
the date hereof unless otherwise noted below

 

1.               Omnibus
Amendment to Loan Documents by and among Borrowers and Lender.

 

2.               Promissory Note
      made by Prime Borrower and New Borrower to the
order of Lender.

 

3.               Deed of
Trust/Mortgage, Security Agreement and Fixture Filing by New Borrower for the
benefit of Lender.

 

4.               Assignment of
Rents and Leases by New Borrower for the benefit of the Lender.

 

5.               Subordination,
Non-Disturbance and Attornment Agreement by and among New Borrower, Lender and
the tenant of the Portfolio Property owned by New Borrower.

 

6.               UCC Financing
Statement naming New Borrower as the debtor and Lender as the secured party.

 

G-9

 

EXHIBIT C

 

Governmental
Certificates

 

G-10

 

EXHIBIT D

 

Entity
Documents

 

G-11

 

EXHIBIT E

 

Opinion
Certificate

 

CERTIFICATE
REGARDING

CERTAIN
MATTERS COVERED IN LEGAL OPINION

 

(CIGNA
Financing)

 

As of             ,
20    

 

Reference
is made that certain opinion letter to be issued by DLA Piper US LLP (the “Borrowers’
Counsel”) on or about the date hereof (the “Opinion Letter”) in favor of
Connecticut General Life Insurance Company (“Lender”).  Capitalized terms used herein without
definition have the meanings given to them in the Opinion Letter.

 

The
undersigned is an authorized signatory of the Borrowers.  The undersigned submits the following
certifications in connection with Borrowers’ Counsel issuance of the Opinion
Letter with respect to an amendment of an existing loan of up to $63,000,000
(the “Loan”) made to the Borrowers (and Site Borrowers (as defined in the Loan
Agreement)) by Lender, secured or to be secured by those certain properties
listed on Exhibit A hereto (each a “Property”, and collectively,
the “Properties”).  In connection with
the Opinion Letter, the undersigned hereby certifies to Borrowers’ Counsel, for
its reliance, the truth, accuracy and completeness of the following matters, to
the extent relating to factual questions:

 

1.                                       The
Organizational Documents are the only documents creating or governing the
internal affairs of the Parties.  The
Organizational Documents have not been amended or modified.

 

2.                                       The execution
and delivery by the respective Parties of the Additional Advance Documents to
which any of them is a party have been duly authorized by each of them.  To the knowledge of the undersigned, each of the Parties  has all requisite power and authority to own, lease, and operate
their respective Properties, to borrow the Loan, and each of the Parties has all requisite power and authority to
execute, deliver and perform each of their respective obligations under the
Additional Advance Documents to which each of them is a party.

 

3.                                       Except with
respect to any modifications set forth in the Additional Advance Documents, the
terms and conditions of the Loan as reflected in the Loan Documents have not
been amended, modified or supplemented, directly or indirectly, by any other
agreement or understanding of the parties or waiver of any of the material
provisions of the Loan Documents, and accurately reflect the complete
understanding of the parties with respect to the transactions contemplated
thereby.

 

4.                                       No consent or
approval of, giving of notice to, registration with, or taking of any other
action in respect of or by any federal, state or local authority, agencies or
other person is 

 

G-12

 

required
with respect to the execution and delivery of any of the Additional Advance
Documents.

 

5.                                       The execution
and delivery of the Additional Advance Documents by the Parties of the
Additional Advance Documents to which any of them is a party do not, and the
performance and observance by each such Party of its respective obligations
thereunder will not, (i)  cause any of the Parties to be in default under
or violate the provisions of any of the Organizational Documents or any other
agreement or obligation to which any Party may be subject or any provision of
applicable law, or (ii) conflict with or result in a breach by any Party
of or constitute a default or event of default under any order, writ, injunction,
determination, decree or judgment specifically naming and binding upon any of
the Parties, or any agreement executed by or binding upon any of the Parties.

 

6.                                       There are no
judgments, orders, writs, injunctions, decrees, or rules of any court,
administrative agency or other governmental authority, or any determination or
award of any arbitrator affecting the Parties. 
There are no legal or administrative proceedings pending or threatened
before any court or governmental agency against the Parties.

 

7.                                       To the knowledge of the undersigned, the execution and delivery of the
Additional Advance Documents and performance of the obligations of the Parties
thereunder will not violate any laws, regulations, rules or guidelines of
any federal, state or local authority, agencies or other person having
jurisdiction over any of the Parties or the Properties.

 

8.                                       The undersigned
has reviewed the contents of the Opinion and this Certificate and hereby
certify that, to its knowledge, the facts and assumptions contained in the Opinions,
insofar as they pertain to the respective Parties and their operations, are
true, correct and complete.

 

[balance of page intentionally left blank]

 

G-13

 

IN WITNESS WHEREOF, the
undersigned has hereunto signed and sealed this Certificate as of the date
first set forth above.

 

 

	
   

  	
  [ADD SIGNATURES]

  

 

G-14

 

Exhibit A

Borrowers
and Properties

 

	
  Borrower

  	
   

  	
  Property Address

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

G-15

 

EXHIBIT H

 

PURCHASE
PRICES

 

	
  PROPERTY

  	
   

  	
  PURCHASE PRICE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

EXHIBIT I

 

FORM OF
NOTE

 

MORTGAGE
NOTE     

 

Boston,
Massachusetts

 

	
  $

  	
  ,
  20   

  

 

FOR VALUE RECEIVED, STAG GI INVESTMENTS HOLDINGS, LLC, a
Delaware limited liability company (the “Prime Borrower”), and                                           
[INSERT NAME OF SITE BORROWER], a Delaware limited liability company (“                              
Borrower,” and together with Prime Borrower collectively referred to as the
“Maker”), promise to pay to the order of CONNECTICUT GENERAL LIFE INSURANCE COMPANY, a Connecticut
corporation, having its principal office at Wilde Building, A4-CRI, 900 Cottage
Grove Road, Hartford, Connecticut 06152, together with its successors,
affiliates, nominees, subsidiaries, investors, participants or assignees (the “Payee”),
or such other place as the holder hereof may designate in writing (the legal
holder from time to time of this Note, including Payee as the initial holder,
referred to as the “Holder”), the principal sum of                                                                     
and NO/100 DOLLARS ($                          ),
or so much thereof as may be advanced to or for the benefit of Maker by Holder
(the “Principal Indebtedness”), together with interest thereon at an
annual rate of            
and        /100 percent (   .   %),
subject to adjustment as provided below (the “Interest Rate”), in
accordance with the provisions hereinafter set forth.

 

Notwithstanding the
foregoing, if after twelve (12) months from the Initial Advancement Date (as
defined below) the aggregate outstanding original principal balance of the Loan
(as defined in the Master Loan Agreement dated as of July 9, 2010 by and
among Prime Borrower and Payee, among others, as amended by Omnibus Amendment
and Agreement of even date herewith, by and among Maker and Payee, among others
(as amended, modified, substituted or supplemented from time to time, the “Loan
Agreement”)), is less than Forty-Five Million and No/100 Dollars
($45,000,000), then commencing on the first (1st) day of the thirteenth (13th) month after the Initial
Advancement Date (the “Interest Rate Adjustment Date”), the Interest
Rate shall increase automatically on the Interest Rate Adjustment Date to the
greater of (a) one-half of one percent (0.5%) more than the current
Interest Rate, or (b) seven percent (7.00%) per annum.  The “Initial Advancement Date” is the
date that Lender makes the Initial Advance under the Loan Agreement.

 

 

1.             Terms of Payment. 
On the date on which any portion of the Principal Indebtedness is first
advanced to Maker (the “Advancement Date”), unless such date is the
first (1st) day of a
calendar month, Maker shall pay to Holder interest on the Principal
Indebtedness so advanced, at the Interest Rate, for the period from and
including the Advancement Date to and including the last day of the calendar
month in which the Advancement Date occurs. 
Interest paid on the Advancement Date shall be calculated on the basis
of a 365-day year and the actual number of days from and including the
Advancement Date to and including the last day of the calendar month in which
the Advancement Date occurs.

 

Commencing on the first (1st) day of the second (2nd) calendar month following
the Advancement Date (or on the first (1st) day of the first (1st) calendar month following the Advancement Date, if
the Advancement Date is the first (1st) day of the calendar month), and on the first (1st) day of each calendar month
thereafter (such payment dates being hereinafter referred to as “Monthly
Payment Dates”) through and including                           
[6 months after the Initial Advancement Date],
Maker shall pay to Holder interest only on the Principal Indebtedness from time
to time outstanding, at the Interest Rate, for the immediately preceding
calendar month (the “Monthly Interest Payments”).  Interest shall be calculated and applied on
the basis of a 360-day year consisting of twelve (12) 30-day months.  The Monthly Interest Payments shall be
applied first to any unpaid costs, expenses and other charges under the Loan
(as hereinafter defined) and then to interest on the Principal Indebtedness at
the Interest Rate.

 

Commencing on                                 
[1st day of the 7th month after Initial Advancement Date] (the “Amortization
Date”), and on the first (1st) day of each calendar month thereafter, through and
including the Maturity Date (as hereinafter defined) (each such payment date
also referred to as a “Monthly Payment Date”), Maker shall pay to Holder
payments comprised of (a) interest on the Principal Indebtedness from time
to time outstanding, at the Interest Rate, for the immediately preceding
calendar month, together with (b) a portion of the Principal Indebtedness
from time to time outstanding, amortized on the basis of a thirty (30) year
amortization schedule calculated from the Amortization Date (the “Monthly
Debt Service Payments,” and together with the Monthly Interest Payments,
the “Monthly Payments”).  The
Monthly Debt Service Payments shall be applied first to any unpaid costs,
expenses and other charges under the Loan, then to interest on the Principal
Indebtedness at the Interest Rate, with the balance to be applied in reduction
of the Principal Indebtedness remaining unpaid. 
The interest component of the Monthly Debt Service Payments shall be
calculated and applied on the basis of a 360-day year consisting of twelve (12)
30-day months.  In the event of a
permitted partial prepayment of the Principal Indebtedness under the Loan
Documents, the amount of the Monthly Debt Service Payments shall be
recalculated to account for changes in the amortization of the remaining
Principal Indebtedness.

 

On                               
[7 years and 6 months after Initial
Advancement Date] (the “Maturity Date”), Maker shall pay to
Holder the entire Principal Indebtedness then remaining unpaid, together with
accrued and unpaid interest thereon at the Interest Rate and any other charges
due under this Note, the Portfolio Mortgages
(as defined in the Loan Agreement) and any other documents evidencing, securing
or otherwise executed by Borrower (as defined in the Loan Agreement) in
connection with the Indebtedness (as defined in the Loan Agreement) (as such
documents may be amended, modified, supplemented or replaced, collectively, the
“Loan 

 

I-2

 

Documents”).  The loan evidenced by the Loan Documents is
referred to as the “Loan.”  The
period from and including the date hereof to the Maturity Date is referred to
as the “Term.”

 

Notwithstanding anything to
the contrary set forth above, if a Monthly Payment Date in any calendar month
is not a “Business Day,” then the Monthly Payment Date shall be extended until
the next succeeding Business Day.  As
used herein, “Business Day” shall have the meaning set forth in the Loan
Agreement.

 

2.             Prepayment. 
Each twelve (12) month period commencing on the first (1st) Monthly Payment Date is
referred to as a “Loan Year.” 
Maker may prepay the Principal Indebtedness in full, but not in part,
provided Maker gives Holder at least thirty (30) days’ prior written notice and
pays a prepayment fee (the “Prepayment Fee”) equal to the greater of:

 

(a)                                  One percent
(1%) of the outstanding Principal Indebtedness, or

 

(b)                                 Yield
Maintenance (as defined below).

 

Notwithstanding the
foregoing, the Loan may be prepaid at par during the last six (6) months
of the Term.  The Prepayment Fee will be
due when the Loan is prepaid prior to the date (the “Open Date”) that is
six (6) months before the Maturity Date, whether such prepayment is
voluntary or results from default, acceleration or any other cause.

 

“Yield Maintenance”
is defined as the sum of Present Values (as defined below) on the date of
prepayment of each Monthly Interest Shortfall (as defined below) for the
remaining Term of the Loan, discounted at the monthly Treasury Yield (as
defined below) plus fifty (50) basis points.

 

The “Monthly Interest
Shortfall” is calculated for each Monthly Payment Date (including the
Maturity Date) and is the product of (i) one-twelfth (1/12) of the
positive difference, if any, of (x) the Semi-Annual Equivalent Rate (as
defined below) less (y) the Treasury Yield plus fifty (50) basis points,
times (ii) the outstanding principal balance of the Loan on each Monthly
Payment Date (before application of any principal installment due for that
month) for each full and partial month remaining in the Term.

 

The “Present Value”
is then determined by discounting each Monthly Interest Shortfall at 1/12 the
Treasury Yield plus fifty (50) basis points.

 

The “Semi-Annual
Equivalent Rate” for this Loan is    .   %.

 

The “Treasury Yield”
will be determined by reference to the end of day yields on
U. S. Treasuries reported in the Federal Reserve Statistical Release
H.15 (http://www.federalreserve.gov/releases/H15/update/), or in the event the
website is discontinued or otherwise generally unavailable, any comparable
electronic rate index that is readily available and verifiable to Maker, for
the fifth (5th) Business Day
prior to the prepayment date.  If the
remaining Term is equal to or less than one (1) year, the Treasury Yield
will equal the yield for Treasuries having a one (1) year maturity
date.  If the remaining Term is equal to
one of the reported two (2), five (5), ten (10) or thirty (30) year
maturity dates, then the Treasury Yield will equal the yield for the Treasury
with a maturity equaling the remaining Term. 
If the remaining 

 

I-3

 

Term is longer than one (1) year
but does not equal one of the reported maturity dates, then the Treasury Yield
will be determined by straight-line interpolation of the yields of the two
Treasuries maturing immediately before and immediately after the expiration of
remaining Term.

 

The Prepayment Fee does not
constitute a penalty, but rather represents the reasonable estimate, agreed to
between Maker and Payee, of a fair compensation for the loss that may be
sustained by Holder due to prepayment of the Principal Indebtedness prior to
the Maturity Date.  Any Prepayment Fee
required hereunder shall be paid without prejudice to the right of Holder to
collect any of the amounts owing under this Note or the Portfolio Mortgages or otherwise, or to enforce
any of its rights or remedies arising out of an Event of Default (as defined
below).

 

Notwithstanding anything
herein to the contrary, (1) to the extent provided in the Loan Agreement,
no Prepayment Fee shall be due in the event of a reduction of the Principal
Indebtedness by application of the proceeds of insurance or a condemnation
proceeding, (2) in connection with the release of one or more Sites in
accordance with the Loan Agreement, Maker has certain rights to prepay the
Principal Indebtedness in part and in connection with any such prepayment only
a pro rata share of the Prepayment Fee shall be required to be paid, all as
further described in the Loan Agreement, and (3) under the terms of the
Loan Agreement, Maker may have other rights to prepay some or all of the
Principal Indebtedness with no or a reduced prepayment fee, in which event the
terms of the Loan Agreement shall control.

 

3.             Security. 
This Note is further evidenced by, among other things, the Loan
Agreement, pursuant to which, inter alia,
Payee has agreed to make, subject to the terms of the Loan Agreement,
(i) an Initial Advance of the Loan to Prime Borrower and one or more of
its Affiliates (collectively, the “Site Borrowers”),
(ii) Additional Advances of the Loan to Prime Borrower and its Affiliates,
such that the Initial Advance and all Additional Advances shall be in the
maximum aggregate original principal amount of SIXTY-THREE MILLION and NO/100 Dollars
($63,000,000) (the Loan, including the Initial Advance and all Additional
Advances, is also referred to as the “Portfolio Loan,” and the Maker and
the Site Borrowers are collectively referred to as the “Borrowers”).  This Note is secured by, among other things,
(a) the Portfolio Mortgages (as defined in the Loan Agreement) encumbering
certain real property with the improvements thereon (as more particularly
described in the Loan Agreement, the “Real Property”) and certain
personal property situated thereon (as more particularly described in the Loan
Agreement, collectively, the “Portfolio Properties”), and (b) the
other collateral described in the other Loan Documents (collectively, the “Security”),
as limited to the extent provided in the Loan Agreement.  The terms and provisions of the Loan
Agreement are hereby incorporated herein by reference, including, without
limitation, the provisions of Section 5 thereof regarding usury.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed to such terms in the Loan Agreement.

 

4.             Location and Medium of Payments.  Any amounts payable under this Note or under
the other Loan Documents shall be paid to Holder by federal funds wire transfer
instructions provided by Holder to Maker from time to time or National
Automated Clearing House transfer, or by such other means as Holder may from
time to time hereafter designate to Maker in writing, in legal tender of the
United States of America.

 

I-4

 

5.             Acceleration of Maturity.  At the option of Holder, upon any Event of
Default (as defined in the Loan Agreement), the whole of the Principal
Indebtedness then outstanding, together with all other Indebtedness due under
any of the Loan Documents, shall immediately become due and payable (“Acceleration
of Maturity”).

 

6.             Late Charges; Interest Following Event of Default.  Maker shall be obligated to pay late charges
and interest on any and all sums due hereunder at the Default Rate as and when
provided in the Loan Agreement.  The
provision for such late charges and Default Rate interest shall not be
construed to permit Maker to make any payment after its due date, to obligate
Holder to accept any overdue payment, or to limit Holder’s rights and remedies
for Maker’s default under this Note or the other Loan Documents.

 

7.             Collection and Enforcement Costs.  Maker, upon demand, shall pay Holder for all
actual out-of-pocket costs and expenses, including without limitation attorneys’
fees, paid or incurred by Holder in connection with the collection of any sum
due hereunder, or in connection with the enforcement of any of Holder’s rights
or Maker’s obligations under this Note, the Portfolio Mortgages or any of the other Loan Documents.

 

8.             Continuing Liability.  The obligation of Maker to pay the Principal
Indebtedness, interest and all other Indebtedness due hereunder or under the
other Loan Documents shall continue in full force and effect and in no way be
impaired, until the actual payment thereof to Holder, and in the case of a sale
or transfer of all or any part of the Security, or in the case of any further
agreement given to secure the payment of this Note, or in the case of any
agreement or stipulation extending the time or modifying the terms of payment
above recited, Maker shall nevertheless continue to be liable on this Note, as
extended or modified by any such agreement or stipulation, unless expressly
released and discharged in writing by Holder.

 

9.             Joint and Several Liability.  If more than one person, corporation,
partnership or other entity shall execute this Note or any amendment,
modification or extension hereof or any substitution or replacement hereof as
Maker, then each person and entity shall be fully liable for all obligations of
Maker hereunder, and such obligations shall be joint and several.

 

10.           No Oral Changes; Waivers.  This Note may not be changed orally, but only
by an agreement in writing signed by the party against whom enforcement of a
change is sought.  The provisions of this
Note shall extend and be applicable to all renewals, amendments, extensions,
consolidations, and modifications of the Portfolio Mortgages and/or the other Loan Documents, and any and all
references herein to the Portfolio Mortgages
and/or the Loan Documents shall be deemed to include any such renewals,
amendments, extensions, consolidations, or modifications thereof.

 

Maker and any future
endorsers, sureties, and guarantors hereof, jointly and severally, waive
presentment for payment, demand, notice of nonpayment, notice of dishonor,
protest of any dishonor, notice of protest, notice of intent to accelerate,
notice of acceleration, and protest of this Note, and all other notices in
connection with the delivery, acceptance, performance, default (except notice of
default required hereby, if any), or enforcement of the payment of this Note,
and they agree that the liability of each of them shall, subject to any
explicit limits contained herein or in any other Loan Documents, be
unconditional without regard to the 

 

I-5

 

liability of any other party
and shall not be in any manner affected by any indulgence, extension of time,
renewal, waiver, or modification granted or consented to by Holder; and Maker
and all future endorsers, sureties and guarantors hereof consent to any and all
extensions of time, renewals, waivers, or modifications that may be granted by
Holder with respect to the payment or other provisions of this Note, and to the
release of the collateral, or any part thereof, with or without substitution,
and agree that additional makers, endorsers, guarantors, or sureties may become
parties hereto or to any other Loan Document without notice to them or without
affecting their liability hereunder or under any other Loan Document.

 

Holder shall not by any act
of omission or commission be deemed to waive any of its rights or remedies
hereunder unless such waiver be in writing and signed by Holder, and then only
to the extent specifically set forth therein; 
a waiver on one event shall not be construed as continuing or as a bar
to or waiver of such right or remedy on a subsequent event.  The acceptance by Holder of payment hereunder
that is less than payment in full of all amounts due at the time of such
payment shall not without the express written consent of Holder:  (a) constitute a waiver of the right to
exercise any of Holder’s remedies at that time or at any subsequent time, (b) constitute
an accord and satisfaction, or (c) nullify any prior exercise of any
remedy.

 

No failure to cause an
Acceleration of Maturity, acceptance of a past due installment, or any
indulgence granted from time to time by Holder shall be construed (i) as a
novation of this Note or as a reinstatement of the indebtedness evidenced
hereby or as a waiver of such right of acceleration or of the right of Holder
thereafter to insist upon strict compliance with the terms of this Note, or (ii) to
prevent the exercise of such right of acceleration or any other right granted
hereunder or by the laws of the Commonwealth of Massachusetts; and, to the
maximum extent permitted by law, Maker hereby expressly waives the benefit of
any statute or rule of law or equity now provided, or which may hereafter
be provided, which would produce a result contrary to or in conflict with the
foregoing.

 

To the maximum extent
permitted by law, Maker hereby waives and renounces for itself, its heirs,
successors and assigns, all rights to the benefits of any statute of
limitations and any moratorium laws and any and all present and future laws
which (i) exempt any of the Security or any other real or personal
property or any part of the proceeds of any sale of any such property from
attachment, levy, foreclosure or sale under execution, (ii) provide for
any reinstatement, marshaling, forbearance, valuation, stay of execution,
extension of time for payment, redemption, appraisement or exemption from civil
process as to Maker or any of the Security or any other real or personal
property, or (iii) conflict with any provision of this Note or any other
Loan Document.  As used herein, “laws”
shall mean the Constitution and laws of the United States of America and of the
Commonwealth of Massachusetts.

 

11.           Bind and Inure. 
This Note shall be binding upon and inure to the benefit of the parties
hereto and their respective legal representatives, heirs, successors and
assigns.

 

12.           Applicable Law; Severability.  Except as may be otherwise expressly provided
in this Note, in the Portfolio Mortgages or in any other Loan Document, all
claims relating, in any way, to the negotiation and/or consummation of the
Portfolio Loan, Holder’s relationship with Maker in connection with the
Portfolio Loan and/or the performance of any obligation under this 

 

I-6

 

Note or any of the other
Loan Documents shall in all respects be governed, construed, applied and
enforced in accordance with the internal laws of the Commonwealth of
Massachusetts (the “State”) without regard to principles of conflicts of
law.  Notwithstanding the foregoing
choice of law:

 

(a)           the procedures governing the
creation, perfection and priority of the liens pertaining to the Security and the enforcement by Holder of its
rights and remedies under the Portfolio Mortgages and the other Loan Documents
with respect to the Security, including without limitation, actions for
foreclosure, for injunctive relief or for appointment of a receiver, shall be
governed by the laws of the state where the Security is located; and

 

(b)           Holder shall comply with applicable
law in the state where the Security is located to the extent required by the
law of such jurisdiction in connection with the foreclosure of the liens
created by the Portfolio Mortgages and the other Loan Documents with respect to
the Security.

 

Nothing contained herein or
in any provisions of the other Loan Documents shall be construed to provide
that the substantive law of the state where the Security is located shall apply
to any parties’ rights and obligations under any of the Loan Documents, which,
except as expressly provided above, are and shall continue to be governed by
the substantive law of the State.  In
addition, the fact that portions of the Loan Documents may include provisions
drafted to conform to the law of the state where the Security is located is not
intended, nor shall it be deemed, in any way, to derogate the parties’ choice
of law as set forth or referred to in this Note, the Portfolio Mortgages or in
the other Loan Documents.  The parties
further agree that, subject to clauses (a) and (b) above, Holder may
enforce its rights under the Loan Documents, including, without limitation, its
rights to sue Maker or to collect any outstanding indebtedness in accordance
with the State law.

 

Maker hereby consents to
personal jurisdiction in any state or federal court located within the State,
as well as to the jurisdiction of all courts from which an appeal may be taken
from the courts within the State, for the purposes of any suit, action or other
proceeding arising out of, or with respect to, any of the Loan Documents, the
negotiation and/or consummation of the Portfolio Loan, Holder’s relationship
with Maker in connection with the Portfolio Loan and/or the performance of any
obligation or the exercise of any remedy under any of the Loan Documents, and
expressly waives any and all objections it may have as to venue in any of such
courts.

 

If any provision of this
Note or the application hereof to any person or circumstance shall, for any
reason and to any extent, be determined to be invalid or unenforceable, neither
the remainder of this Note nor the application of such provision to any other
person or circumstance shall be affected thereby, but rather the same shall be
enforced to the greatest extent permitted by law, except that if such provision
relates to the payment of a monetary sum, then Holder may, at its option,
declare the entire Indebtedness due and payable upon sixty (60) days’ prior
written notice to Maker and, provided no Event of Default is then continuing,
without Prepayment Fee.

 

I-7

 

13.          Notice.  Any
notice, demand, request, statement or consent made hereunder shall be in
writing signed by the party giving such notice, request, demand, statement or
consent, and shall be deemed to have been properly given when either delivered
in accordance with the terms of the Loan Agreement.

 

14.          Nonrecourse. 
No direct or indirect owner of Maker, nor any officer, director,
manager, advisor, trustee, employee, agent or representative of Maker, shall be
personally liable for the payment of any Indebtedness due hereunder or under
the other Loan Documents or for the performance of any obligations of Maker
hereunder or under the other Loan Documents, nor, except as expressly provided
below in this Section 14, shall Maker be personally liable for such obligations.  Except as provided below, no judgment for the
repayment of the Principal Indebtedness or interest thereon will be enforced
against the Maker personally or against any property of the Maker other than
the Security and any other security furnished under the Loan Documents in any
action to foreclose the Portfolio Mortgages
or to otherwise realize upon any security furnished under the Loan Documents or
to collect any amount payable hereunder or under the other Loan Documents.

 

Nothing herein contained,
however, shall be construed as prohibiting Holder from exercising any and all
remedies which the Loan Documents permit, including, without limitation, the
right to bring actions or proceedings against Maker and to enter a judgment
against Maker, so long as the exercise of any remedy does not extend to
execution against or recovery out of any property other than the Security
furnished to Holder under any of the Loan Documents.

 

Notwithstanding any of the
foregoing:

 

(a)           Maker shall be fully and personally liable for the
following acts and omissions to the extent shown below, after any applicable
notice and cure periods (if any) set forth herein or in any applicable Loan
Documents:

 

	
  ACT
  OR OMISSION:

  	
   

  	
  LIABILITY:

  
	
   

  	
   

  	
   

  
	
  (i)                       Maker
  misappropriates any condemnation or insurance proceeds attributable to the
  Real Property,

  	
   

  	
  To the extent of such
  misappropriation;

  
	
   

  	
   

  	
   

  
	
  (ii)                    Maker
  misappropriates any security deposits or reserves attributable to the Real
  Property,

  	
   

  	
  To the extent of such
  misappropriation;

  
	
   

  	
   

  	
   

  
	
  (iii)                 Maker
  collects rents in advance in violation of any covenant under the Loan
  Documents,

  	
   

  	
  To the extent of such
  rents collected in advance;

  
	
   

  	
   

  	
   

  
	
  (iv)                Maker commits
  any (1) fraud, (2) intentional and material misrepresentation,
  (3) grossly negligent misrepresentation, or (4) physical waste 

  	
   

  	
  To the extent of any
  remedies available at law or in equity;

   

  

 

I-8

 

	
  ACT
  OR OMISSION:

  	
   

  	
  LIABILITY:

  
	
   

  	
   

  	
   

  
	
  of the Real Property,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (v)                   Gross
  revenues from the Real Property are sufficient to pay any regularly scheduled
  payment of the indebtedness then due and payable, operating and maintenance
  expenses (including real estate taxes) then due and payable, insurance
  premiums then due and payable, deposits then required to be made into a
  reserve account, or other sums then required to be paid by the Loan
  Documents, and Maker fails to make such payments or deposits when due,

  	
   

  	
  To the extent of any funds
  diverted by Maker (or anyone acting on Maker’s behalf) from such payments or
  expenses during the period six (6) months prior to Holder’s notice of
  acceleration through the date Holder takes title to the Real Property; and

  
	
   

  	
   

  	
   

  
	
  (vi)                Maker or, to
  the extent applicable, any tenant under a Lease that is obligated to maintain
  insurance pursuant to the terms of such Lease, fails to maintain the levels,
  coverages and maximum deductibles of insurance required under the Loan
  Documents, to the extent that a casualty or liability occurs or arises and
  insurance proceeds would have been available had such insurance been
  maintained,

  	
   

  	
  In the amount of the loss
  incurred as the result of such uninsured casualty or uninsured liability.

  

 

(b)           There shall be no limitation on or prejudice to the rights
of Holder to proceed against any person or entity, including, without
limitation, Maker, or on the exercise of any of Holder’s rights under any
indemnity from Maker to Holder;

 

(c)           There shall be no limitation on or prejudice to the rights
of Holder to proceed against any entity or person whatsoever, including,
without limitation, Maker, with respect to the enforcement of any guarantees of
the Principal Indebtedness or other sums due hereunder or under any of the
other Loan Documents or any part thereof, any master leases, or any similar
rights of payment.

 

15.          Time of the Essence. 
Time is of the essence in this Note and the other Loan Documents.

 

16.          Attorneys’ Fees. 
Any reference to “attorney fees,” “attorney’s fees” or “attorneys’ fees”
in this document includes but is not limited to the fees, charges and costs
incurred by Holder through its retention of outside legal counsel and the
reasonably allocated fees, costs and 

 

I-9

 

charges for services
rendered by Holder’s in-house counsel. 
Any reference to “attorney fees,” “attorney’s fees” or “attorneys’ fees”
shall also include but not be limited to those attorneys or legal fees, costs
and charges incurred by Holder following an Event of Default in the collection
of any Indebtedness (or any portion thereof), the enforcement of any
obligations hereunder or under any of the Loan Documents, the protection of the
Security, the foreclosure of (or exercise of power under) the Portfolio Mortgages, the sale of the Security,
the defense of actions arising hereunder and the collection, protection or set
off of any claim Holder may have in a proceeding under Title 11, United States
Code.  Attorney’s fees provided for
hereunder shall accrue whether or not Holder has provided notice of an Event of
Default or of an intention to exercise its remedies for such Event of Default.

 

17.          WAIVER OF TRIAL BY JURY.  MAKER AND HOLDER HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY AS TO ANY MATTER ARISING OUT OF OR
CONCERNING THE SUBJECT MATTER OF THIS NOTE.

 

18.          Wire Transfer. 
Payment by Maker to Holder of the entire indebtedness evidenced by the
Note and the other Loan Documents, whether by prepayment, at the Maturity Date,
by Acceleration of Maturity, or otherwise, shall be deemed made on a designated
Business Day only if such funds are both sent by a federal wire transfer of
immediately available funds and are received by Holder on such designated
Business Day no later than 2:00 p.m. local time in the state where Holder’s
account is located.   Funds not so
received shall continue to bear interest at the applicable rate until payment
is received in compliance with the foregoing.

 

19.          Business Purpose.  Maker warrants that the Portfolio Loan is
being made solely to acquire or carry on a business or commercial enterprise,
and Maker is a business or commercial organization.  Maker further warrants that all of the
proceeds of the Portfolio Loan shall be used for commercial purposes and
stipulates that the Portfolio Loan shall be construed for all purposes as a
commercial loan, and is not made for personal, family, household or
agricultural purposes.

 

[SIGNATURES
ON NEXT PAGE]

 

I-10

 

IN WITNESS WHEREOF, Maker
has duly executed this Note as a sealed instrument as of the day and year first
above written.

 

	
  WITNESS TO ALL:

  	
   

  	
  MAKER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PRIME
  BORROWER:

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  STAG GI INVESTMENTS
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                          BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
					

 

[Signatures
Continued on Next Page]

 

I-11

 

EXHIBIT J

 

FORM OF
PORTFOLIO MORTGAGE

 

MORTGAGE,
SECURITY AGREEMENT AND FIXTURE FILING

 

THIS MORTGAGE, SECURITY
AGREEMENT AND FIXTURE FILING (this “Mortgage”) is made as of the        
day of                         ,
20   , by                                            
[INSERT NAME OF NEW SITE BORROWER], a Delaware limited liability company,
having its principal place of business at c/o STAG Capital Partners, LLC, 99
Chauncy Street, Boston, Massachusetts 02111 (hereinafter referred to as “Mortgagor”),
for the benefit of CONNECTICUT GENERAL LIFE
INSURANCE COMPANY, a Connecticut corporation, having its principal
place of business at Wilde Building, A4-CRI, 900 Cottage Grove Road, Hartford,
Connecticut 06152, together with its successors, affiliates, nominees,
subsidiaries, investors, participants or assignees (hereinafter referred to
together as “Mortgagee”).

 

W I T N
E S S E T H:

 

WHEREAS, Mortgagee has
entered into a Master Loan Agreement with STAG GI INVESTMENTS HOLDINGS, LLC, a
Delaware limited liability company (the “Prime  Borrower”), dated
as of July 9, 2010, as amended by an Omnibus Amendment and Agreement by
and among Prime Borrower, Mortgagor and Mortgagee, among others, of even date
herewith (as amended, modified, substituted or supplemented from time to time,
the “Loan Agreement”), pursuant to which, inter alia, Mortgagee has
agreed, subject to the terms of the Loan Agreement, to make a mortgage loan to
Prime Borrower and Site Borrowers (as defined below) in the maximum aggregate
original principal amount of Sixty-Three Million and No/100 Dollars
($63,000,000) (the “Loan” or the “Portfolio Loan”);

 

WHEREAS, Prime Borrower
intends to own all of the membership interests in one or more special purpose
entities (each, a “Site Borrower” and, collectively, the “Site
Borrowers” and, together with the Prime Borrower, collectively and
individually, the “Borrower” or “Borrowers”) created to acquire
various parcels of real property and all improvements thereon and all rights
and appurtenances thereto (each, a “Site” and, collectively, the “Portfolio
Properties”);

 

WHEREAS, the Portfolio Loan
is evidenced and secured by (i) one or more promissory notes by Prime
Borrowers and one or more Site Borrowers (collectively and individually
referred to as the “Notes” or the “Portfolio Notes,” as the same
may be amended, modified, substituted or supplemented from time to time),
(iii) a mortgage, deed of trust, or indemnity deed of trust, assignment of
leases, rents and contracts, security agreement and fixture filing that
encumbers a Site (one from the applicable Site Borrower for each Site, each a “Portfolio
Mortgage” and collectively the “Portfolio Mortgages,” as the same
may be amended, modified, substituted or supplemented from time to time) and
other items of collateral, and (iv) such other security agreements, loan
agreements, disbursement agreements, supplemental agreements, 

 

 

environmental indemnity
agreements, guaranties, assignments (both present and collateral) and other
instruments of indebtedness or security, including, without limitation, those
referenced in the Loan Agreement (including the Notes, the Portfolio Mortgages,
the Loan Agreement and this Mortgage, as the same may be amended, modified,
substituted or supplemented from time to time, the “Loan Documents”)
(all of the indebtedness and obligations under the Loan Documents being herein
called, the “Indebtedness”);

 

WHEREAS, pursuant to the
terms of the Loan Agreement, Lender will make an advance of the Loan proceeds
to Prime Borrower and Mortgagor, in the original principal amount of                                         
and No/100 Dollars ($               )
(the “           Advance”)
together with interest thereon, as evidenced by a Mortgage Note     
(“Note     ”) of even date
herewith, by Prime Borrower and Mortgagor payable to the order of Lender (Note     
constituting one of the “Notes” as defined above);

 

WHEREAS, the                 
Advance is secured by, in addition to the other Loan Documents, this Mortgage;

 

WHEREAS, Mortgagor
constitutes a Site Borrower, the                
Advance constitutes [the Initial Advance/an Additional Advance] (as defined in
the Loan Agreement), Note      constitutes [the Initial Note/a
Note], and this Mortgage constitutes [the Initial Portfolio Mortgage/a
Portfolio Mortgage]; and

 

NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Mortgagor does hereby mortgage, grant with MORTGAGE COVENANTS,
bargain, sell, assign, pledge, transfer and convey unto Mortgagee and to
Mortgagee’s successors and assigns forever, all of the following described
land, improvements, real and personal property, rents and leases, and all of
its estate, right, title and interest therein (hereinafter collectively called
the “Security”):

 

The land described in Exhibit A attached hereto and made
a part hereof, situate, lying and begin in the City/Town of                ,
County of                ,
and State/Commonwealth of                
(the “Land”);

 

TOGETHER with all buildings
and other improvements now or hereafter located on the Land or any part
thereof, including but not limited to, all extensions, betterments, renewals,
renovations, substitutes and replacements of, and all additions and
appurtenances to the Security (the “Improvements”);

 

TOGETHER with all of the
right, title and interest of Mortgagor in and to the land lying in the bed of
any street, road, highway or avenue in front of or adjoining the Land to the
center lines thereof;

 

TOGETHER with all easements
now or hereafter located on or appurtenant to the Land and/or the Improvements
or under or above the same or any part thereof, rights-of-way, licenses,
permits, approvals, and privileges, belonging or in any way appertaining to the
Land and/or the Improvements including without limitation (i) any drainage
ponds or other like drainage areas

 

J-2

 

not located on the Land
which may be required for water run-off, (ii) any easements necessary to
obtain access from the Land to such drainage areas, or to any other location to
which Mortgagor has a right to drain water or sewage, (iii) any land
required to be maintained as undeveloped land by the zoning rules and
regulations applicable to the Land, (iv) any easements and agreements
which are or may be established to allow satisfactory ingress to, egress from
and operation of the Land and/or the Improvements, and (v) any sanitary
sewer, drainage, water and utility service agreements benefiting the Real
Property (as hereinafter defined) or any part thereof;

 

TOGETHER with any and all
awards heretofore made and hereafter to be made by any governmental, municipal
or State (as hereinafter defined) authorities to the present and all subsequent
owners of the Security for the taking of all or any portion of the Security by
power of eminent domain, including, without limitation, awards for damage to
the remainder of the Security and any awards for any change or changes of grade
of streets affecting the Security, which said awards are hereby assigned to
Mortgagee, and Mortgagee, at its option, is hereby authorized, directed and
empowered to collect and receive the proceeds of any such awards from the
authorities making the same and to give proper receipts and acquittances
therefor, and to apply the same toward the payment of the Indebtedness (as
defined in the Loan Agreement), notwithstanding the fact that such amount may
not then be due and payable; and Mortgagor hereby covenants and agrees to and
with Mortgagee, upon request by Mortgagee, to make, execute and deliver, at
Mortgagor’s expense, any and all assignments and other instruments sufficient
for the purpose of assigning the aforesaid awards to Mortgagee, free, clear and
discharged of any and all encumbrances of any kind or nature whatsoever (all of
the foregoing Land, Improvements, rights, easements, rights-of-way,
licenses, privileges, and awards, collectively, the “Real Property”);

 

TOGETHER with all proceeds,
insurance or otherwise, paid for the damage done to any of the Security and all
proceeds of the conversion, voluntarily or involuntarily, of any of the
Security into cash or liquidated claims;

 

TOGETHER with all fixtures,
machinery, equipment, goods, and every other article of personal property,
tangible and intangible, now or hereafter attached to or used in connection
with the Real Property, or placed on any part thereof and whether or not
attached thereto, appertaining or adapted to the use, management, operation or
improvement of the Real Property, insofar as the same and any reversionary
right thereto may now or hereafter be owned or acquired by Mortgagor,
including, without limitation:  all
partitions; screens; awnings; shades; blinds; floor coverings; hall and lobby
equipment; heating, lighting, plumbing, ventilating, refrigerating,
incinerating, elevator, escalator, air conditioning and communication plants or
systems with appurtenant fixtures; vacuum cleaning systems; call systems;
sprinkler systems and other fire prevention and extinguishing apparatus and
materials; all equipment, manual, mechanical and motorized, for the
construction, maintenance, repair and cleaning of, and removal of snow from,
parking areas, walks, underground ways, truck ways, driveways, common areas,
roadways, highways and streets; all equipment, manual, mechanical and
motorized, for the transportation of customers or employees to and from the
store facilities on the Real Property; all telephone, computer and other electronic
equipment and appurtenances thereto, including software; and all other
machinery, pipes, poles, appliances, equipment, wiring, fittings, panels and
fixtures; and any proceeds therefrom, any replacements thereof or additions or
accessions

 

J-3

 

thereto; and all building
materials, supplies and other property delivered to the Real Property for
incorporation into the Improvements thereon, all of which are declared to be a
part of the realty and covered by the lien hereof, but said lien shall not
cover any fixture, machinery, equipment or article of personal property which
is owned by a lessee and not required for the operation or maintenance of the
Real Property, provided said fixture, machinery, equipment or article of
personal property is not permanently affixed to the realty and may be removed
without material damage thereto and is not a replacement of any item which
shall have been subject to the lien hereof; but said lien shall include any
other fixture, machinery, equipment or article of personal property so
incorporated into the Improvements so as to constitute realty under applicable
law, whether or not owned by the Mortgagor;

 

TOGETHER with all of
Mortgagor’s books of account and records relating to the Security, including
all computerized or electronic books and records;

 

TOGETHER with all contracts
for sale, leases in the nature of sales and all leases and subleases of the
Real Property, or any portion thereof, now and hereafter entered into and all
right, title and interest of Mortgagor thereunder, including, without
limitation, cash or securities deposited thereunder to secure performance by
the lessees or contract purchasers; all rents, royalties, issues and profits;
all proceeds and revenue arising from or out of the Real Property or any part
thereof; all licenses, permits, franchises, governmental approvals and all
sanitary sewer, drainage, water and utility service agreements benefiting the
Real Property or any part thereof, together with all accounts, accounts
receivable, credit card receipts, contract rights, reserve accounts required to
be established hereunder, general intangibles, documents, instruments and
chattel paper, and proceeds of any of the foregoing arising from or in
connection with the Real Property, including all books and records in
connection therewith; and all rights of Mortgagor under any leases, covenants,
agreements, easements, restrictions or declarations recorded with respect to,
or as an appurtenance to, the Real Property or any part thereof (all of the
tangible and intangible personal property described in this and the previous
paragraphs, and Mortgagor’s interest, as lessee, under any lease of property
included within the description of the tangible and intangible personal property
described above, collectively, the “Personal Property”);

 

TOGETHER with all of the
right, title and interest of Mortgagor in and to all and singular the
tenements, hereditaments and appurtenances belonging to or in any way
pertaining to the Security; all the estate, right, title and claim whatsoever
of Mortgagor, either in law or in equity, in and to the Security; and any and
all other, further or additional title, estate, interest or right which may at
any time be acquired by Mortgagor in or to the Security, and if Mortgagor shall
at any time acquire any further estate or interest in or to the Security, the
lien of this Mortgage shall attach, extend to, cover and be a lien upon such
further estate or interest automatically without further instrument or
instruments, and Mortgagor, upon request of Mortgagee, shall execute such
instrument or instruments as shall reasonably be requested by Mortgagee to
confirm such lien, and Mortgagor hereby irrevocably appoints Mortgagee as
Mortgagor’s attorney-in-fact (which appointment is coupled with an interest) to
execute all such instruments if Mortgagor shall fail to do so within ten (10) days
after demand;

 

TO HAVE AND TO HOLD the
Security, and each and every part thereof, unto Mortgagee and its successors
and assigns forever, for the purposes and uses herein set forth.

 

J-4

 

THIS
MORTGAGE IS GRANTED TO SECURE THE INDEBTEDNESS AS PROVIDED IN THE LOAN
AGREEMENT, AS THE INDEBTEDNESS MAY BE ALLOCATED AND RE-ALLOCATED AMONG THE
BORROWERS, ALL AS MORE PARTICULARLY PROVIDED IN THE LOAN AGREEMENT.

 

AND, Mortgagor hereby
further covenants, agrees and warrants as follows:

 

1.             Payment of Indebtedness.  Mortgagor and each Borrower (except as
otherwise provided in the Loan Agreement) will pay the Indebtedness in
accordance with the provisions of the Notes and the Loan Agreement and all
prepayment charges, late charges and fees required thereunder, and all
extensions, renewals, modifications, amendments and replacements thereof, and
will keep and perform all of the covenants, promises and agreements, and pay
all sums provided in (i) each of the Notes or any other promissory note or
notes at any time hereafter issued to evidence the Indebtedness, (ii) the
Portfolio Mortgages, (iii) the Loan Agreement, and (iv) any and all
other Loan Documents, all in the manner herein or therein set forth.

 

2.             Covenants of Title.  Mortgagor has good, clear record and
marketable title to the entire Real Property in fee simple; has absolute
unencumbered title to the Personal Property; and has good right and full power
to sell, mortgage and convey the same; the Security is free and clear of
easements, restrictions, liens, leases and encumbrances, in each case except
those easements, restrictions, liens, leases and encumbrances listed on Schedule
B of the policy or policies of title insurance delivered to Mortgagee as of
the recordation of this Mortgage (the “Permitted Encumbrances”), to
which this Mortgage is expressly subject, or which may hereafter be created in
accordance with the terms hereof; and Mortgagor will warrant and defend title
to the Security against all claims and demands whatsoever except the Permitted
Encumbrances.  Mortgagee shall have the
right, at its option and at such time or times as it, in its sole discretion,
shall deem necessary, to take whatever action it may deem necessary to defend
or uphold the lien of this Mortgage and, subject to the notice and cure rights
set forth herein and in the other Loan Documents, to enforce any of the rights
of Mortgagee hereunder or any obligation secured hereby, including without
limitation, the right to institute appropriate legal proceedings for such
purposes.

 

3.             Loan Agreement.  The terms of the Loan Agreement are hereby
incorporated herein by reference.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
to such terms in the Loan Agreement. 
Mortgagor agrees to pay and perform all obligations and covenants set
forth in the Loan Agreement as if fully set forth herein.  This Mortgage also secures Mortgagor’s
obligations under the Loan Agreement, to the extent provided therein.

 

4.             Independence of Security.  Mortgagor shall not by act or omission permit
any building or other improvement on any premises not subject to the lien of
this Mortgage to rely on the Security or any part thereof or any interest
therein to fulfill any municipal or governmental requirement, and Mortgagor
hereby assigns to Mortgagee any and all rights to give consent for all or any
portion of the Security or any interest therein to be so used.  Similarly, no part of the Security shall rely
on any premises not subject to the lien of this Mortgage or any interest
therein to fulfill any governmental or municipal requirement.  Mortgagor shall not by act or omission impair
the integrity of the Real Property as one or more zoning lots that are separate
and apart 

 

J-5

 

from any premises not
subject to the lien of this Mortgage, and as one or more complete tax parcels,
separate and apart from all other premises. 
Any act or omission by Mortgagor which would result in a violation of
any of the provisions of this Section shall be void.

 

5.             No Transfer.  Except as otherwise set forth in the Loan
Agreement, Mortgagor shall not transfer, sell or assign the Security, any
interest in the Security, or any controlling interest in Mortgagor or any
controlling interest in an entity that owns or controls Mortgagor.  For purposes of this Section, the terms “control”
and “controlling” mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of
Mortgagor, whether through the ownership of voting securities, by contract or
otherwise.

 

6.             No Other Liens.  Mortgagor shall not consent, agree to, or
permit any mortgage, lien or security interest, upon or affecting the Security
or any part thereof except as granted or permitted in this Mortgage and any
other lien or security interest granted to Mortgagee, and shall not pledge or
otherwise encumber all or any of the interests in Mortgagor, as security for
any financings.

 

Mortgagor
will promptly pay and discharge any and all amounts which are now or hereafter
become liens against the Security whether or not superior to the lien hereof or
to any assignment of rents and leases given to Mortgagee.

 

The
covenants of this Section shall survive any foreclosure and sale of the
Security and any conveyance thereof by deed in lieu of foreclosure with respect
to any such liens in existence as of the date of transfer of title.

 

7.             Assignment of Rents and Leases.  Subject to the limited license granted by
Mortgagor in the Assignment of Rents and Leases (defined below), Mortgagor
hereby presently, irrevocably, absolutely and unconditionally transfers,
assigns and sets over unto Mortgagee all of its right, title and interest in
and to all present and future leases, subleases, license agreements, concession
agreements, lease termination agreements and other occupancy agreements of any
nature, oral or written, of all or any portion of the Real Property, together
with all modifications, supplements, extensions, renewals and replacements
thereof now existing or hereafter made (each a “Lease” and collectively,
the “Leases”), and also together with the rights to sue for, collect and
receive all rents, prepaid rents, additional rents, royalties, security
deposits, damages payable upon default by tenant, or other sums in any of the
Leases provided to be paid to the landlord thereunder, profits, income, license
fees, concession fees, lease termination fees and issues of the Security
(collectively, “Rents”), to be applied by Mortgagee in payment of the
Indebtedness and also together with the rights of Mortgagor to receive, hold
and apply all bonds and security in all of the Leases provided to be furnished
to the landlord thereunder, and also together with any and all guaranties of
the obligations of the tenants thereunder and the rights of Mortgagor to
enforce any and all of the agreements, terms, covenants and conditions in all
of the Leases provided and to give notices thereunder.  Mortgagee may receive and collect the Rents,
personally or through a receiver, upon the occurrence of an Event of Default.  Mortgagor agrees to consent to a receiver if
this is believed necessary or desirable by Mortgagee to enforce its rights
under this Section.

 

J-6

 

Mortgagor
shall not otherwise assign or pledge, or contract, expressly or by implication,
to assign or pledge, any Lease or the rights to sue for, collect and receive
any Rents, or the rights to receive, hold and apply any bonds and security in
any of the Leases provided to be furnished to the landlord thereunder, or the
rights to enforce any of the agreements, terms, covenants or conditions of the
Leases or to give notices thereunder, unless in each instance the written
consent thereto of Mortgagee be first obtained.

 

Nothing
in this Mortgage shall be construed to obligate Mortgagee, expressly or by
implication, to perform any of the covenants of Mortgagor as landlord under any
of the Leases hereinabove assigned or to pay any sum of money or damages therein
provided to be paid by the landlord.

 

If
Mortgagee shall from time to time suffer or permit Mortgagor to sue for,
collect or receive any Rents, or to receive, hold or apply any bonds or
security under the Leases, or to enforce any of the agreements, terms,
covenants or conditions thereunder or to give notices thereunder, neither such
sufferance nor permission shall constitute a waiver or relinquishment by
Mortgagee of the rights hereunder and hereby assigned to Mortgagee with respect
to any subsequent Rents or with respect to any subsequent receipt, holding or
application of bonds or security or any subsequent enforcement of such
agreements, terms, covenants or conditions or any subsequent notices.

 

Reference
is made to that certain Assignment of Rents and Leases, executed by Mortgagor
in favor of Mortgagee, of even date and record herewith (the “Assignment of
Rents and Leases”).  To the extent
not provided herein, the terms and provisions of the Assignment of Rents and
Leases are by this reference incorporated herein as though fully set forth
herein.  This Mortgage also secures
Mortgagor’s obligations under the Assignment of Rents and Leases.

 

8.             Future Leases.  Except as otherwise set forth in the Loan
Agreement, Mortgagor will not hereafter make any Lease to any tenant, or amend,
modify, terminate, renew or extend any Lease (other than a renewal, extension
or expansion to which a tenant is entitled under the terms of an existing Lease
or contained in a Lease that is subsequently approved by Mortgagee), affecting
the Security unless Mortgagee shall first consent in writing to the terms of
the Lease and the form of the Lease. 
Except as otherwise set forth in the Loan Agreement, all Leases and
subleases and any amendments, modifications, replacements, extensions, renewals
or terminations thereof executed after the date hereof must be submitted to
Mortgagee for prior written approval. 
Notwithstanding the foregoing, (i) Mortgagee’s consent to the above
matters shall be required only to the extent provided for in the Loan
Agreement, and (ii) whenever such consent is required, the standards and
procedures for the giving (or deemed giving) or withholding of such consent
shall be as set forth in the Loan Agreement.

 

Mortgagor
shall promptly deliver to Mortgagee a fully-executed copy (certified by
Mortgagor to be true, complete and correct) of each approved Lease, together
with a Lease estoppel certificate and subordination, non-disturbance and
attornment agreement (an “SNDA”), each in form reasonably acceptable to
Mortgagee.

 

J-7

 

All
Leases must be subordinate to the lien of this Mortgage unless Mortgagee
otherwise specifies.  Unless otherwise
approved by Mortgagee, each Lease must contain a provision that, upon notice to
tenant by Mortgagee, the Lease shall become superior, in whole or in part, to
the lien of the Mortgage.  Without
limiting the foregoing, Mortgagee hereby reserves the right to subordinate this
Mortgage to any Lease subsequently made by recording with the                                         
[INSERT RECORDING OFFICE] in which this Mortgage is recorded, a declaration to
that effect, executed by Mortgagee, which declaration once so recorded shall be
binding upon the tenant under such Lease and such tenant’s successors and
assigns.

 

Mortgagor
will from time to time upon reasonable demand of Mortgagee, confirm in writing
the assignment to Mortgagee of any or all Leases of the Land and space in the
Improvements, and such written confirmation shall be in such form as Mortgagee
shall reasonably require and as shall be necessary to make the same recordable.

 

Nothing
in this Mortgage shall be construed to obligate Mortgagee, expressly or by
implication, to perform any of the covenants of Mortgagor as landlord under any
of the Leases hereinabove assigned or to pay any sum of money or damages
therein provided to be paid by the landlord.

 

9.             Mortgagor’s Obligations as
Landlord.  (a) Mortgagor shall,
at Mortgagor’s cost and expense, promptly and fully perform in all material
respects each and every covenant, condition, promise and obligation on the part
of the landlord to be performed pursuant to the terms of each and every Lease
or letting, written or oral, now or hereafter made with respect to the Security
or any part or parts thereof, and shall not suffer or permit there to exist any
default in such performance on the part of such landlord or permit any event to
occur which would give the tenant under any such Lease the right to terminate
the same or to offset Rent.

 

(b)          Mortgagor shall give
Mortgagee prompt notice of any default under any Lease upon Mortgagor becoming
aware of such matter, and immediate notice of the receipt by Mortgagor of any
notice of default from the tenant or its successors or assigns under a Lease,
and Mortgagor shall furnish to Mortgagee promptly any and all information which
Mortgagee may reasonably request concerning the performance and observance of
all covenants, agreements and conditions contained in the Leases by the
landlord thereunder to be kept, observed and performed and concerning the
compliance with all terms and conditions of the Leases.  Mortgagor hereby authorizes Mortgagee and its
representatives to make reasonable investigations and examinations concerning
such performance, observance and compliance, and Mortgagor, upon reasonable
request, shall promptly deposit with Mortgagee any and all documentary evidence
relating to such performance, observance and compliance and copies of any and
all notices, communications, plans, specifications or other instruments or
documents received or given by Mortgagor in any way relating to or affecting
the Leases which may concern or affect the estate of the landlord or the tenant
in or under the Leases or in the premises thereby demised.

 

(c)           In the event of any
failure by Mortgagor to keep, observe or perform any covenant, agreement or
condition contained in the Leases or to comply with the terms and conditions of
the Leases, any performance, observance or compliance by Mortgagee pursuant to 

 

J-8

 

this Mortgage on behalf of Mortgagor shall not remove or waive, as
between Mortgagor and Mortgagee the corresponding Event of Default under the
terms of this Mortgage.

 

10.                                 Leases;
Foreclosure.  Any proceedings
or other steps taken by Mortgagee to foreclose this Mortgage, or otherwise to
protect the interests of Mortgagee hereunder, shall not operate to terminate
the rights of any present or future tenant of space in the Improvements,
notwithstanding that said rights may be subject and subordinate to the lien of
this Mortgage, unless Mortgagee specifically elects otherwise in the case of
any particular tenant.  The failure to
make any such tenant a defendant in any such foreclosure proceeding and to
foreclose such tenant’s rights will not be asserted by Mortgagor or any other
defendant in such foreclosure proceeding as a defense to any proceeding
instituted by Mortgagee to foreclose this Mortgage or otherwise protect the
interests of Mortgagee hereunder.

 

11.                                 Events of
Default.  Each of the following shall
constitute an “Event of Default” hereunder and shall entitle the Mortgagee to
exercise its remedies hereunder and under any of the other Loan Documents or as
otherwise provided by law:

 

(a)                                  An Event of Default
occurs under the Loan Agreement;

 

(b)                                 An Event of
Default occurs under any other Loan Document, including, without limitation,
any other Portfolio Mortgage;

 

(c)                                  Breach of the
provisions of Section 5 or 6 of this Mortgage; provided, however, that if such
breach was the result of an involuntary transfer or lien, such breach remains
uncured for more than thirty (30) days following notice from Mortgagee to
Mortgagor with respect thereto.

 

12.                                 Remedies Upon
Default.  Immediately upon the
occurrence of any Event of Default, Mortgagee shall have the option, in
addition to and not in lieu of or substitution for all other rights and
remedies provided in this Mortgage or any other Loan Document or provided by
law or in equity, and is hereby authorized and empowered by Mortgagor, to do
any or all of the following, to the extent permitted by applicable law:

 

(a)                                                  Declare without
notice the entire unpaid amount of the Indebtedness immediately due and payable
and, at Mortgagee’s option, (i) to bring suit therefor, or (ii) to
bring suit for any delinquent payment of or upon the Indebtedness, or (iii) to
take any and all steps and institute any and all other proceedings in law or in
equity that Mortgagee deems necessary to enforce payment of the Indebtedness
and performance of other obligations secured hereunder and to protect the lien
of this Mortgage.

 

(b)                                                 Commence
foreclosure proceedings against the Security, in a single parcel or in several
parcels, through judicial proceedings, by advertisement or as otherwise provided
by law, at the option of Mortgagee, pursuant to the statutes in such case made
and provided, and to sell the Security or to cause the same to be sold at
public sale, and to convey the same to the purchaser, in accordance with said
statutes in a single parcel or in several parcels at the option of Mortgagee.

 

J-9

 

(c)                 Proceed
against the Personal Property in accordance with Mortgagee’s rights and
remedies with respect to the Personal Property including the right to sell the
Personal Property together with the Real Property separately and without regard
to the remainder of the Security in accordance with Mortgagee’s rights and
remedies provided by the                         
[INSERT STATE] Uniform Commercial Code as well as other rights and remedies
available at law or in equity.

 

(d)                Cause to be
brought down to date a title examination and tax histories of the Security,
procure title insurance or title reports or, if necessary, procure new
abstracts and tax histories.

 

(e)                 Procure an
updated or entirely new environmental audit of the Security including building,
soil, ground water and subsurface investigations; have the Improvements
inspected by an engineer or other qualified inspector and procure a building inspection
report; procure an MAI or other appraisal of the Security or any portion
thereof; enter upon the Security at any time and from time to time to
accomplish the foregoing and to show the Security to potential purchasers and
potential bidders at foreclosure sale; make available to potential purchasers
and potential bidders all information obtained pursuant to the foregoing and
any other information in the possession of Mortgagee regarding the Security.

 

(f)                 Either by
itself or by its agent to be appointed by it for that purpose or by a receiver
appointed by a court of competent jurisdiction, as a matter of strict right,
without notice and without regard to the adequacy or value of any security for
the Indebtedness or the solvency of any party bound for its payment, to take
possession of and to operate the Security, Mortgagor hereby waiving any right
Mortgagor might have to object to or oppose any such possession, and whether or
not Mortgagee has taken possession of the Security, to collect and apply the
Rents, including those past due and unpaid, after payment of all necessary
charges and expenses, in reduction of the Indebtedness.  The receiver shall have all of the rights and
powers permitted under the laws of the State/Commonwealth of                         
[INSERT STATE].  Except for damage caused
by Mortgagee’s willful misconduct, Mortgagor hereby waives any claim Mortgagor
may have against Mortgagee for mismanagement of the Security during Mortgagee’s
operation of the Security under this subparagraph or as mortgagee in actual
possession under applicable statutes.

 

(g)                Mortgagee may,
at its option, without waiving any Event of Default, pay, perform or observe
the same, and all payments made or costs or expenses incurred by Mortgagee in
connection therewith shall be secured hereby and shall be, without demand,
immediately repaid by Mortgagor to Mortgagee with interest thereon at the
Default Rate hereunder.  Mortgagee shall
be the sole judge of the necessity for any such actions and of the amounts to be
paid.  Mortgagee is hereby empowered to
enter and to authorize others to enter upon the Security or any part thereof
for the purpose of performing or observing any such defaulted term, covenant or
condition without thereby becoming liable to Mortgagor or any person in
possession holding under Mortgagor.

 

(h)                Apply against
the Indebtedness in such order as Mortgagee shall determine any funds held for
the benefit of Mortgagor in escrow by Mortgagee or by any third-party escrow 

 

J-10

 

agent
under any of the Loan Documents, including without limitation, any funds held
under the Tax Escrow Agreement and/or the General Reserve Escrow Agreement (as
each are defined in the Loan Agreement).

 

(i)                  Upon any
foreclosure sale, Mortgagee may bid for and purchase the Security and shall be
entitled to apply all or any part of the Indebtedness as a credit to the
purchase price.  In the event of any sale
of the Security by foreclosure, through judicial proceedings, by advertisement
or otherwise, the proceeds of any such sale which are applied in accordance
with this Mortgage shall be applied in the following order to:  (i) all expenses incurred for the
collection of the Indebtedness and the foreclosure of this Mortgage, including
reasonable attorneys’ fees, or such attorneys’ fees as are permitted by law; (ii) all
sums expended or incurred by Mortgagee directly or indirectly in carrying out
the terms, covenants and agreements of the Notes evidencing the Indebtedness,
of this Mortgage and any other Loan Documents, together with interest thereon
as therein provided; (iii) all late payment charges, prepayment fees,
advances and other amounts due under any of the Loan Documents; (iv) all
accrued and unpaid interest upon the Indebtedness; (v) the unpaid
principal amount of the Indebtedness; and (vi) the surplus, if any, to the
person or persons legally entitled thereto.

 

Mortgagor will pay to
Mortgagee upon demand all costs and expenses incurred by Mortgagee in the
exercise of Mortgagee’s rights and remedies under this Mortgage and the other
Loan Documents for collection of the Indebtedness, foreclosure on the Security
or otherwise, including without limitation title insurance fees and premiums,
environmental consultant’s charges and appraisal, engineering and inspection
fees, receiver’s fees, costs and agent’s compensation, auctioneer’s fees and
foreclosure sale advertising costs, any deed excise tax stamps required to be
affixed to the foreclosure deed and court filing fees, together with attorneys’
fees and costs which shall include without limitation all attorneys’ fees and
costs incurred in connection with (A) the exercise of Mortgagee’s rights
and remedies as aforesaid, (B) any negotiations, other services and advice
rendered regarding restructuring of the Indebtedness prior to any foreclosure
sale, whether or not any such restructuring is actually accomplished, and (C) any
petition filed by or against Mortgagor under Title 11 of the Bankruptcy
Code.  Any such amounts incurred by Mortgagee
shall be secured hereby and shall be immediately repaid by Mortgagor to
Mortgagee upon demand with interest thereon at the Default Rate.

 

To the maximum extent
permitted under applicable law, Mortgagor hereby waives any right Mortgagor may
have to interfere with any foreclosure auction sale held upon the Security and
agrees that after such sale, Mortgagor will have no right to possess or remain
upon the Security, Mortgagor acknowledging Mortgagor’s status as a trespasser
in such circumstances.

 

In the event of any
acceleration of the Indebtedness pursuant to the first paragraph of this
Section, Mortgagor shall pay to Mortgagee together with the principal
indebtedness and interest thereon, an amount equal to the Prepayment Fee
provided for in the Notes and such fee shall be included as part of the
Indebtedness.

 

Failure to exercise any
option to accelerate in the event of a default or other circumstance permitting
the exercise of such option, shall not constitute a waiver of the default or of
the right 

 

J-11

 

to exercise such option at a
later time, or a waiver of the right to exercise such option in the event of
any other default or circumstance specified above.

 

13.           Waiver of Statutory Rights.  Mortgagor agrees, to the full extent
permitted by law, that in an Event of Default on the part of Mortgagor
hereunder, neither Mortgagor nor anyone claiming through or under Mortgagor
will set up, claim, or seek to take advantage of any moratorium, reinstatement,
forbearance, appraisement, valuation, stay, homestead, extension, exemption or
redemption laws now or hereafter in force, in order to prevent or hinder the
enforcement or foreclosure of this Mortgage, or the sale of the Security or the
delivery of possession thereof immediately after such sale to the purchaser at
such sale, and Mortgagor, for itself and all who may at any time claim through
or under it, hereby waives to the full extent that it may lawfully do so, the
benefit of all such laws, and any and all rights to have the assets subject to
the security interest of this Mortgage marshaled upon any foreclosure or sale
under the power granted herein.

 

14.           Security Interest.  This Mortgage shall, as to any equipment and
other Personal Property covered hereby, be deemed to constitute a security
agreement, and Mortgagor, as debtor, hereby grants to Mortgagee, as secured
party, a security interest therein pursuant to the                        
[INSERT STATE] Uniform Commercial Code (the “UCC”).  Mortgagor agrees, upon reasonable request of
Mortgagee, to furnish an inventory of Personal Property owned by Mortgagor and
subject to this Mortgage and, upon request by Mortgagee, to execute any
supplements to this Mortgage, any separate security agreement and any financing
statements and continuation statements in order to include specifically said
inventory of Personal Property or otherwise to perfect the security interest
granted hereby, provided that the same are consistent with and do not
materially increase the obligations of Mortgagor under the Loan Documents.  Upon any Event of Default, Mortgagee shall
have all of the rights and remedies provided in the UCC or otherwise provided
by law or by this Mortgage, including but not limited to the right to require
Mortgagor to assemble such Personal Property and make it available to Mortgagee
at a place to be designated by Mortgagee which is reasonably convenient to both
parties, the right to take possession of such Personal Property with or without
demand and with or without process of law and the right to sell and dispose of
the same and distribute the proceeds according to law.  The parties hereto agree that any requirement
of reasonable notice shall be met if Mortgagee sends such notice to Mortgagor
at least five (5) days prior to the date of sale, disposition or other
event giving rise to the required notice, and that the proceeds of any
disposition of any such Personal Property may be applied by Mortgagee first to
the reasonable expenses in connection therewith, including reasonable attorneys’
fees and legal expenses incurred, and then to payment of the Indebtedness.  With respect to the Personal Property that
has become so attached to the Real Property that an interest therein arises
under the real property law of the State of                                 
[INSERT STATE], this Mortgage shall also constitute a financing statement and a
fixture filing under the UCC.

 

15.           Right of Entry.  Mortgagee and Mortgagee’s representatives may
at all reasonable times and upon reasonable prior notice to Mortgagor enter
upon the Security and inspect the same, or cause it to be inspected by agents,
employees or independent contractors of Mortgagee, and show the same to others,
provided that (a) Mortgagee shall not be obligated to make any such entry
or inspection, (b) any entry, inspection or other activities shall be
subject to the rights of tenants under Leases and shall not unreasonably
interfere with any activities of any tenant at 

 

J-12

 

the Real Property, and
(c) upon any Event of Default, Mortgagee and Mortgagee’s representatives
may make such entry and carry on such activities at all times and without
notice to Mortgagor, but subject to the rights of any tenant of the Real
Property.

 

16.           Rights Cumulative.  Each right and remedy of Mortgagee under this
Mortgage, the Notes and any other Loan Documents shall be in addition to every
other right and remedy of Mortgagee and such rights and remedies may be
enforced separately or in any combination.

 

17.           Subrogation.  To the extent that proceeds of the
Indebtedness are used to pay any outstanding lien, charge or encumbrance
affecting the Security, such proceeds have been advanced by Mortgagee at
Mortgagor’s request, and Mortgagee shall be subrogated to all rights, interest
and liens owned or held by any owner or holder of such outstanding liens,
charges and encumbrances, irrespective of whether such liens, charges or
encumbrances are released of record; provided, however, that the terms and
provisions hereof shall govern the rights and remedies of Mortgagee and shall
supersede the terms, provisions, rights, and remedies under the lien or liens
to which Mortgagee is subrogated hereunder.

 

18.           No Waiver.  Any failure by Mortgagee to insist upon the
strict performance by Mortgagor of any of the terms and provisions hereof shall
not be deemed to be a waiver of any of the terms and provisions hereof, and
Mortgagee, notwithstanding any such failure, shall have the right thereafter to
insist upon the strict performance by Mortgagor of any and all of the terms and
provisions hereof to be performed by Mortgagor.

 

19.           Mortgage Extension.  The lien hereof shall remain in full force
and effect during any postponement or extension of the time of payment of the
Indebtedness, or of any part thereof, and any number of extensions or
modifications hereof, or any additional notes taken by Mortgagee, shall not
affect the lien hereof or the liability of Mortgagor or of any subsequent
obligor to pay the Indebtedness unless and until such lien or liability be
expressly released in writing by Mortgagee.

 

20.           Indemnification.  Mortgagor shall indemnify and hold Mortgagee
harmless from and against all obligations, liabilities, losses, costs,
expenses, fines, penalties or damages (including attorneys’ fees) which
Mortgagee may incur by reason of this Mortgage or with regard to the Security
prior to the exercise of any remedies under this Mortgage; provided, however,
that such indemnity shall not apply to (i) any liabilities, losses, costs,
expenses, fines, penalties or damages arising on account of the gross
negligence or willful misconduct of Mortgagee, or (ii) any income or
franchise taxes imposed on Mortgagee. 
Mortgagor shall defend Mortgagee against any claim or litigation
involving Mortgagee for the same, and should Mortgagee incur such obligation,
liability, loss, cost, expense, fine, penalty or damage, then Mortgagor shall
reimburse Mortgagee upon demand.  Any
amount owed Mortgagee under this provision shall bear interest at the Default
Rate and shall be secured hereby.

 

21.           Nonrecourse.  The provisions set forth in Section 14
of the Notes are hereby incorporated herein by reference, mutatis mutandis,
and shall be applicable to this Mortgage as if set forth in full herein.

 

J-13

 

22.           Attorneys’ Fees.  Any reference to “attorney fees”, “attorneys’
fees”, or “attorney’s fees” in this document includes but is not limited to the
fees, charges and costs incurred by Mortgagee through its retention of outside
legal counsel and the reasonably allocated fees, costs and charges for services
rendered by Mortgagee’s in-house counsel. 
Any reference to “attorney fees”, “attorneys’ fees”, or “attorney’s fees”
shall also include but not be limited to those attorneys or legal fees, costs
and charges incurred by Mortgagee following an Event of Default in the
collection of the Indebtedness (or any portion thereof), the enforcement of any
obligations hereunder or under any of the Loan Documents, the protection of the
Security, the foreclosure of (or exercise of power under) this Mortgage, the
sale of the Security, the defense of actions arising hereunder and the
collection, protection or set off of any claim the Mortgagee may have in a
proceeding under Title 11 of the Bankruptcy Code.  Attorneys fees provided for hereunder shall
accrue whether or not Mortgagee has provided notice of an Event of Default or
of an intention to exercise its remedies for such Event of Default.

 

23.           Administrative Fees.  Mortgagee shall have the right to charge
administrative fees during the term of the Notes as Mortgagee may determine, in
its sole reasonable discretion, in connection with any servicing requests made
by Mortgagor requiring Mortgagee’s evaluation, preparation and processing of
any such requests.  Administrative fees
shall not be charged for routine servicing matters contemplated by the Loan
Documents including, without limitation: 
processing payments; processing insurance and UCC continuation documentation;
processing escrow draws; review of tenant leases, SNDAs and tenant estoppels on
standard forms approved by Mortgagee without material modifications.  Such administrative fees shall apply without
limitation to requests for matters not permitted or contemplated by the Loan
Documents (including, without limitation, requests for transfers or
assignments, and requests for partial releases; requests for review of new
easements), and to requests, which, while contemplated by the Loan Documents,
because of the nature of the request, will require significantly more time than
an institutional lender, acting reasonably, would contemplate for such request
(including without limitation, requests for the approval of tenant leases,
tenant estoppels and SNDAs which contain material differences from Mortgagee’s
standard forms and approvals for transfers or assignments or partial releases
requiring the review of substantial materials by Mortgagee).  Mortgagee shall also be entitled to
reimbursement for professional fees it incurs for such administration,
including without limitation, those of architects, engineers and attorneys
(whether (i) employed by Mortgagee or its affiliate, or (ii) engaged
by Mortgagee or its affiliates as independent contractors).

 

24.           Protection of Security; Costs and
Expenses.  Mortgagor shall appear in
and defend any action or proceeding purporting to affect the security hereof or
the rights or powers of the Mortgagee, and shall pay all costs and expenses,
including without limitation cost of evidence of title and reasonable attorneys’
fees, in any such action or proceeding in which Mortgagee may appear, and in
any suit brought by Mortgagee to foreclose this Mortgage or to enforce or
establish any other rights or remedies of Mortgagee hereunder.  If Mortgagor fails to perform any of the
covenants or agreements contained in this Mortgage, or if any action or
proceeding is commenced which affects Mortgagee’s interest in the Security or
any part thereof, including, but not limited to, eminent domain, code
enforcement, or proceedings of any nature whatsoever under any federal or state
law, whether now existing or hereafter enacted or amended, relating to
bankruptcy, insolvency, arrangement, reorganization or other form of debtor
relief, or to a decedent, then Mortgagee may, but without obligation to do so
and without

 

J-14

 

notice to or demand upon
Mortgagor and without releasing Mortgagor from any obligation hereunder, make
such appearances, disburse such sums and take such action as Mortgagee deems
necessary or appropriate to protect Mortgagee’s interest, including, but not
limited to, disbursement of attorneys’ fees, entry upon the Security to make
repairs or take other action to protect the security hereof, and payment,
purchase, contest or compromise of any encumbrance, charge or lien which in the
judgment of Mortgagee appears to be prior or superior hereto.  Mortgagor further agrees to pay all expenses
of Mortgagee incurred upon an Event of Default (including without limitation
fees and disbursements of counsel) incident to the protection of the rights of
Mortgagee hereunder, or to enforcement or collection of payment of the
Indebtedness, whether by judicial or non-judicial proceedings, or in connection
with any bankruptcy, insolvency, arrangement, reorganization or other debtor
relief proceeding of Mortgagor, or otherwise. 
Any amounts disbursed by Mortgagee pursuant to this Section shall
be additional indebtedness of Mortgagor secured by the Loan Documents as of the
date of disbursement and shall bear interest at the Default Rate (as defined in
the Loan Agreement).  All such amounts
shall be payable by Mortgagor immediately without demand.  Nothing contained in this Section shall
be construed to require Mortgagee to incur any expense, make any appearance, or
take any other action.

 

25.           Notices.  Any notice, demand, request, statement or
consent made hereunder shall be in writing, signed by the party giving such
notice, request, demand, statement, or consent, and shall be deemed to have
been properly given when delivered in accordance with the terms of the Loan
Agreement.

 

26.           Release.  As provided in Section 3 and Section 20
of the Loan Agreement, upon the satisfaction in full of the Allocated Loan
Amount (as defined in the Loan Agreement), or upon the satisfaction of the
applicable conditions in the Loan Agreement relating to the substitution or
partial release of the Security, Mortgagee shall release of record the Security
from the lien hereof and shall surrender this Mortgage and all notes evidencing
indebtedness secured by this Mortgage to Mortgagor.  Mortgagor shall pay all costs of recordation.

 

27.           Applicable Law.  Except as may be otherwise expressly provided
in this Mortgage or in any other Loan Document, all claims relating, in any
way, to the negotiation and/or consummation of the Portfolio Loan, Mortgagee’s
relationship with the Borrowers in connection with the Portfolio Loan and/or
the performance of any obligation under any of the Loan Documents shall in all
respects be governed, construed, applied and enforced in accordance with the
internal laws of the Commonwealth of Massachusetts (the “State”) without
regard to principles of conflicts of law. 
Notwithstanding the foregoing choice of law:

 

(a)           the procedures governing the
creation, perfection and priority of the liens pertaining to the Security and the enforcement by Mortgagee of its
rights and remedies under this Mortgage and the other Loan Documents with
respect to the Security, including without limitation, actions for foreclosure,
for injunctive relief or for appointment of a receiver, shall be governed by
the laws of the state where the Security is located; and

 

(b)           Mortgagee shall comply with
applicable law in the state where the Security is located to the extent
required by the law of such jurisdiction in connection 

 

J-15

 

with the foreclosure of the
liens created by the Mortgage and the other Loan Documents with respect to the
Security.

 

Nothing
contained herein or in any provisions of the other Loan Documents shall be
construed to provide that the substantive law of the state where the Security
is located shall apply to any parties’ rights and obligations under any of the
Loan Documents, which, except as expressly provided above, are and shall
continue to be governed by the substantive law of the State.  In addition, the fact that portions of the
Loan Documents may include provisions drafted to conform to the law of the
state where the Security is located is not intended, nor shall it be deemed, in
any way, to derogate the parties’ choice of law as set forth or referred to in
this Mortgage or in the other Loan Documents. 
The parties further agree that Mortgagee may enforce its rights under the
Loan Documents, including, without limitation, its rights to sue Mortgagor or
to collect any outstanding indebtedness in accordance with the State law,
subject to clauses (a) and (b) above.

 

Mortgagor
hereby consents to personal jurisdiction in any state or federal court located
within the State, as well as to the jurisdiction of all courts from which an
appeal may be taken from the courts within the State, for the purposes of any
suit, action or other proceeding arising out of, or with respect to, any of the
Loan Documents, the negotiation and/or consummation of the Portfolio Loan,
Mortgagee’s relationship with Mortgagor or any other Borrower in connection
with the Portfolio Loan and/or the performance of any obligation or the
exercise of any remedy under any of the Loan Documents, and expressly waives
any and all objections it may have as to venue in any of such courts.

 

28.           Invalidity.  If any provision of this Mortgage shall be
held invalid or unenforceable, the same shall not affect in any respect whatsoever
the validity of the remainder of this Mortgage, except that if such provision
relates to the payment of a monetary sum, then the Mortgagee may, at its
option, declare the Indebtedness due and payable upon sixty (60) days prior
written notice to Mortgagor and, provided there exists no Event of Default
hereunder, without prepayment fee or premium.

 

29.           Captions; Counterparts.  The captions in this instrument are inserted
only as a matter of convenience and for reference, and are not and shall not be
deemed to be any part hereof.  This
Mortgage and all of the Loan Documents may be signed in any number of
counterparts, each of which may be signed by any one or more of the parties
hereto, but all of which shall constitute one and the same instrument and shall
be binding and effective when all parties have signed at least one counterpart.

 

30.           Modifications.  This Mortgage may not be changed or
terminated except in writing signed by both parties.  The provisions of this Mortgage shall extend
and be applicable to all renewals, amendments, extensions, consolidations, and
modifications of the other Loan Documents, and any and all references herein to
the Loan Documents shall be deemed to include any such renewals, amendments,
extensions, consolidations or modifications thereof.

 

31.           Bind and Inure.  The provisions of this Mortgage shall be
binding on the Mortgagor and its heirs, successors and assigns, and any
subsequent owners of the Security.  The
covenants of Mortgagor herein shall run with the land, and this Mortgage and
all of the 

 

J-16

 

covenants herein contained
shall inure to the benefit of the Mortgagee, and its affiliates, nominees,
subsidiaries, investors, participants, successors and assigns.

 

32.           Replacement of Notes.  Upon receipt of evidence reasonably
satisfactory to Mortgagor of the loss, theft, destruction or mutilation of any
Note, and in the case of any such loss, theft or destruction, upon delivery of
an indemnity agreement reasonably satisfactory to Mortgagor or, in the case of
any such mutilation, upon surrender and cancellation of any Note, Mortgagor
will execute and deliver, in lieu thereof, a replacement Note, identical in
form and substance to such Note and dated as of the date of such Note and upon
such execution and delivery all references in this Mortgage to the Notes shall
be deemed to refer to such replacement Note or Notes.

 

33.           Time of the Essence.  Time is of the essence with respect to each
and every covenant, agreement and obligation of Mortgagor under this Mortgage,
the Notes, any other Loan Document and any and all other instruments now or
hereafter evidencing, securing or otherwise relating to the Indebtedness.

 

34.           Waiver of Trial by Jury.  Mortgagor and Mortgagee hereby waive their
respective rights to a trial by jury as to any matter arising out of or
concerning the subject matter of this Mortgage.

 

35.           Statutory Condition; Statutory
Power of Sale.  This Mortgage is upon
the STATUTORY CONDITION for any breach of which, or upon the breach of any
other of Mortgagor’s covenants and undertakings hereunder, Mortgagee shall have
the STATUTORY POWER OF SALE.

 

[SIGNATURE ON FOLLOWING
PAGE]

 

J-17

 

IN WITNESS WHEREOF, the
Mortgagor has duly executed this Mortgage as a sealed instrument as of the date
first above written.

 

 

	
   

  	
  MORTGAGOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

COMMONWEALTH OF
MASSACHUSETTS

 

COUNTY OF SUFFOLK

 

On this                 
day of                            ,
20   , before me, the undersigned notary public, personally
appeared                                 ,
proved to me through satisfactory evidence of identification, which was
personal knowledge of identity, to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he signed it
voluntarily for its stated purpose as the               
of                                  .

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  My commission expires: 

  

 

J-18

 

EXHIBIT A

TO

MORTGAGE
AND SECURITY AGREEMENT

 

Description
of Real Property

 

J-19

 

EXHIBIT K

 

FORM OF
OMNIBUS AMENDMENT TO LOAN DOCUMENTS

 

OMNIBUS AMENDMENT AND AGREEMENT

 

THIS OMNIBUS AMENDMENT
AGREEMENT (this “Agreement”) is executed and delivered as of                              ,
20      by and between STAG GI INVESTMENTS HOLDINGS, LLC, a Delaware limited
liability company (the “Prime Borrower”);                          , a Delaware limited liability company (“                     Borrower”) [INSERT ANY
EXISTING SITE BORROWERS] (                     
Borrower also known as a “Site Borrower,” and together with Prime
Borrower collectively and individually referred to as the “Borrower” or “Borrowers”);
                                                 
[INSERT NEW BORROWER NAME] (“___________________Borrower”); CONNECTICUT GENERAL LIFE INSURANCE COMPANY,
a Connecticut corporation (together with its successors, affiliates, nominees,
subsidiaries, investors, participants and assignees, “Lender”); and MIDLAND LOAN SERVICES, INC., a Delaware
corporation (the “Escrow Holder”).

 

Recitals

 

A.            Lender and Prime Borrower are parties to that certain
Master Loan Agreement (as amended, modified, substituted or supplemented from
time to time, the “Loan Agreement”), dated as of July 9, 2010,
pursuant to which, inter alia,
Lender has agreed, subject to the terms of the Loan Agreement, to make a
mortgage loan to Prime Borrower and Site Borrowers in the maximum aggregate
original principal amount of Sixty-Three Million and No/100 Dollars
($63,000,000) (the “Loan” or the “Portfolio Loan”), as more
particularly provided in the Loan Agreement.

 

B.            [FOR ADDITIONAL
ADVANCES ONLY]  [Pursuant to
the terms of the Loan Agreement, Lender advanced to Prime Borrower and                      
Borrower an advance of the Loan proceeds in the original principal amount of $                           
(the “Initial Advance”).

 

C.            Pursuant to the terms of the Loan Agreement, Prime
Borrower, together with each Site Borrower, may elect to obtain one or more
additional advances of the Loan proceeds prior to the expiration of the
Advancement Period (as defined in the Loan Agreement) in the maximum aggregate original
principal amount as of the date hereof of up to                                                   
and No/100 Dollars ($                  )
(individually and collectively, the “Additional Advances”), as evidenced
by one or more Notes.]

 

D.            The Portfolio Loan is evidenced and secured by (i) 
one or more promissory notes by Prime Borrower and Affiliates of Prime Borrower
(the “Site Borrowers,” and together with Prime Borrower, also part of
the “Borrowers”) (collectively and individually referred to as the “Notes”
or the “Portfolio Notes,” as the same may be amended, modified,
substituted or supplemented from time to time), (ii) the Portfolio
Mortgages (as defined in the Loan Agreement), and (iii) the other Loan
Documents (as defined in the Loan Agreement).

 

E.            In connection with the Loan, Lender, Borrowers and Escrow
Holder are parties to (i) a General Reserve Escrow and Security Agreement
(the “General Reserve Escrow

 

 

Agreement,” as the same
may be amended, modified, substituted or supplemented from time to time), dated
as of                                 ,
2010, pursuant to which Borrowers and Lender appointed Escrow Holder to act as
holder of the Escrow Funds thereunder on the terms and conditions set forth
therein, and (ii) a Real Estate Tax Escrow and Security Agreement (the “Tax
Escrow Agreement,” as the same may be amended, modified, substituted or
supplemented from time to time), dated as of                                    ,
2010, pursuant to which Borrowers and Lender appointed Escrow Holder to act as
holder of the Escrow Funds thereunder on the terms and conditions set forth
therein.

 

F.             In connection with the Loan, Borrowers have executed and
delivered to Lender an Environmental Indemnification Agreement (the “Environmental
Indemnification Agreement,” as the same may be amended, modified,
substituted or supplemented from time to time), dated as of                                              ,
2010.

 

G.            Pursuant to the terms of the Loan Agreement, Lender will
make an [Initial Advance, as defined in the Loan Agreement,/Additional Advance]
to Prime Borrower and                                           
[INSERT NAME OF SITE BORROWER], a Delaware limited liability company (“                              Borrower”),
an Affiliate of Prime Borrower, in the original principal amount of                                              
and No/100 Dollars ($                          )
together with interest thereon (the “                    Advance”), as evidenced by a Mortgage
Note          (as the same may be
amended, modified, substituted or supplemented from time to time, “Note         ”)
of even date herewith, by Prime Borrower and                                 
Borrower payable to the order of Lender.

 

H.                                                   
Borrower is or will be the owner of the parcels of real property and all
improvements thereon and all rights and appurtenances thereto located in the
State/Commonwealth of                                      ,
and more particularly described in Exhibit A attached hereto (the “                                Site”).

 

I.             The                                  
Advance is secured by, among other documents, a mortgage, assignment of leases,
rents and contracts, security agreement and fixture filing of even date herewith
that encumbers the                                      
Site (the “                          Portfolio
Mortgage”).

 

J.             Lender, Borrowers and                             
Borrower desire to amend the Loan Agreement to reflect the approval and grant
of the                             
Advance to Prime Borrower and                             
Borrower as [the Initial Advance/an Additional Advance] under the Loan
Agreement.

 

K.            Lender, Borrowers, Escrow Holder and                             
Borrower desire to amend the General Reserve Escrow Agreement and the Tax
Escrow Agreement to reflect the approval and grant of the                             
Advance to Prime Borrower and                             
Borrower as [the Initial Advance/an Additional Advance] under the Loan
Agreement.

 

L.            Lender and Borrowers desire to amend the Environmental
Indemnification Agreement to reflect the approval and grant of the                               
Advance to Prime 

 

K-2

 

Borrower and                        
Borrower as [the Initial Advance/an Additional Advance] under the Loan
Agreement and the addition of the                           
Site as an additional Portfolio Property.

 

M.           Capitalized terms used in this Agreement and not otherwise
defined herein have the meanings given to them in the Loan Agreement.

 

Agreements

 

NOW
THEREFORE, for and in consideration of the foregoing recitals and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lender, Borrowers and                             
Borrower, and Lender, Borrowers, Escrow Holder and                             
Borrower, hereby amend the Loan Agreement, and the General Reserve Escrow
Agreement and the Tax Escrow Agreement, respectively, and agree as follows:

 

1.                                         
Borrower shall constitute a Site Borrower under the Loan Agreement, the General
Reserve Escrow Agreement and the Tax Escrow Agreement.

 

2.             The                             
Advance shall constitute [the Initial Advance/an Additional Advance] under the
Loan Agreement.

 

3.             Note            
shall constitute [the Initial Note/an Additional Note] under the Loan
Agreement.

 

4.             The                             
Portfolio Mortgage shall constitute [the Initial Portfolio Mortgage/an
Additional Portfolio Mortgage] under the Loan Agreement.

 

5.             The                             
Site shall constitute (i) [the Initial Site/an Additional Portfolio
Property] under the Loan Agreement, (ii) a Portfolio Property under the
General Reserve Escrow Agreement and the Tax Escrow Agreement, and (iii) a
part of the Security under the Portfolio Mortgages and the Environmental
Indemnity Agreement.

 

6.             [FOR
THE INITIAL ADVANCE ONLY]  Section 21
of the Loan Agreement is amended by adding the following new subsections
(h)-(w):

 

“(h)         Except as disclosed
in writing to Lender, no actions, suits, investigations, litigation,
bankruptcy, reorganization or other proceedings are pending at law or in equity
before any Governmental Authority, or to its actual knowledge, are threatened
by any Governmental Authority, against or affecting the operations of any of
the Portfolio Properties, nor has any Borrower received written notice of any
such matter with respect to any tenant of any of the Portfolio Properties
which: (i) would, as of the date hereof, affect the validity or priority
of the lien of any of the Portfolio Mortgages, (ii) could reasonably be
expected to materially and adversely affect the ability of any Borrower to
perform its obligations pursuant to and as contemplated by the terms and
provisions of this Loan Agreement or the Loan Documents, or (iii) could
reasonably be expected to materially and adversely affect the operations or
financial condition of any Borrower, any Constituent Owner or any Portfolio
Property.

 

K-3

 

(i)            The execution,
delivery and performance of this Agreement, the Notes, any of the Portfolio
Mortgages, or any of the other Loan Documents will not constitute a breach or
default under any other agreement to which any Borrower or any other party
thereto (other than Lender or Escrow Holder) is or may be bound or affected, or
a violation of any law or court order which may affect any of the Portfolio
Properties, any part thereof, any interest therein, or the use thereof.

 

(j)            To the actual
knowledge of Borrower, no Borrower is in violation of or in default with
respect to any term or provision of any other loan commitment, mortgage, deed
of trust, indenture, contract, or instrument applicable to such Borrower or any
of the Portfolio Properties or by which such Borrower is bound or with respect
to any order, writ, injunction, decree or demand of any court or any
governmental agency or authority.

 

(k)           The rent roll
attached as Exhibit N
accurately reflects in all material respects the Leases and income from the
Portfolio Properties as of the date indicated thereon.

 

(l)            No Borrower has
entered into any Leases nor, to the actual knowledge of Borrower, are there any
unrecorded Leases or other arrangements for occupancy of space within any of
the Portfolio Properties other than the Leases reflected in the rent roll
attached as Exhibit N.

 

(m)          No Borrower has
received written notice of any condemnation of any portion of any of the
Portfolio Properties nor, to any Borrower’s actual knowledge, is any such
action contemplated by any governmental authority.

 

(n)           To Borrower’s actual
knowledge, all factual information set forth in the Commitment and its exhibits,
all financial statements, operating statements, Leases and rent rolls
previously furnished by or on behalf of any Borrower to Lender in connection
with the Portfolio Loan and all other submissions referred to herein or
required by the Commitment are true, complete and correct in all material
respects as of the date indicated thereon, are not misleading in any material
respect as of their respective dates and do not omit any information required
to prevent such statements, loan submissions or materials from being materially
misleading under the circumstances; provided that as to any third party reports
provided to Lender by or on behalf of Borrower, the foregoing representation of
Borrower is limited to having provided true and complete copies of such reports,
and does not constitute a representation of Borrower that all statements and
conclusions therein are accurate (although Borrower is not aware of any
inaccuracy).

 

(o)           Except as disclosed
to Lender in writing, to the actual knowledge of Borrower, no material adverse
change in the operations of any of the Portfolio Properties or in the financial
condition of any Borrower has occurred since the date of preparation of the
most recent financial statements and operating statements delivered to Lender.

 

(p)           Except as otherwise
disclosed in writing to Lender, to Borrower’s actual knowledge, the operation
of the Portfolio Properties complies in all material respects with all
applicable zoning, environmental protection or control codes and fire,
electrical and

 

K-4

 

building
codes, rules and regulations. 
Except as otherwise disclosed in writing to Lender, to Borrower’s actual
knowledge, there is no license, approval or permit, necessary for either the
lawful operation of any of the Portfolio Properties or the lawful occupancy
thereof, including, without limitation, utility, building, zoning, subdivision
control, land and water use, environmental protection and flood hazard permits,
which has not been obtained.

 

(q)           To Borrower’s actual
knowledge, and except as otherwise disclosed in any estoppel certificate
provided to Lender, in the Leases or rent roll delivered by any Borrower to
Lender or as otherwise disclosed to Lender in writing, (1) no Borrower is
in default in any material respect under any Lease; (2) no tenant of any
of the Portfolio Properties has committed an uncured monetary default under its
Lease; (3) all conditions precedent to any tenant’s obligation to pay rent
have been satisfied and no tenant of any of the Portfolio Properties has
committed a non-monetary default under its Lease; and (4) no tenant Lease
contains any option or right of first refusal to purchase any interest in any
of the Portfolio Properties.

 

(r)            To Borrower’s
actual knowledge, there are no unrecorded contracts to purchase any of the
Portfolio Properties or any interest therein.

 

(s)            Except as otherwise
disclosed to Lender in writing prior to the date hereof, each Site consists of
a separate tax lot or lots assessed separately and apart from any other
property owned by any Borrower or any other owner.

 

(t)            Except as otherwise
disclosed on the respective surveys of the Portfolio Properties delivered to
Lender in connection with the Portfolio Loan, to Borrower’s actual knowledge,
no Portfolio Property lies in a 100 year flood plain that has been identified
by the Secretary of Housing and Urban Development or any other governmental
authority.

 

(u)           Attached hereto as Exhibit H is a true and accurate
list of each of the Sites and the purchase price paid by the applicable
Borrower for each Site as of the date hereof.

 

(v)           Borrower represents,
warrants and covenants as of the date hereof and until such time as the
Indebtedness is paid in full that, unless otherwise agreed to in writing by
Lender, each Site Borrower shall be a single-purpose entity, and in furtherance
thereof:

 

(i)            No
Site Borrower shall dissolve or liquidate (or suffer any liquidation or
dissolution).

 

(ii)           No
Site Borrower will enter into any transaction of merger or consolidation, or
acquire by purchase or otherwise all or substantially all the business or
assets of, or any stock or other evidence of beneficial ownership of, any
entity, except as expressly contemplated by this Loan Agreement.

 

K-5

 

(iii)          Except
as otherwise provided in this Loan Agreement, no Site Borrower will guarantee
or otherwise hold out its credit as being available to satisfy obligations of
any other person or entity.

 

(iv)          Each
Site Borrower was organized for the sole purpose of acquiring leasing, managing
and operating its respective Portfolio Property and activities ancillary
thereto.

 

(v)           No
Site Borrower has engaged or shall engage in any business unrelated to the
acquisition, ownership, leasing, management and operation of the Portfolio
Properties and activities ancillary thereto; and the same shall conduct and
operate its business as presently conducted and operated at all times relevant
hereto.

 

(vi)          No
Site Borrower has made or shall make any loans or advances to any third party
and will not pledge such Borrower’s assets for the benefit of any third party.

 

(vii)         Each
Site Borrower shall be, and at all times shall hold itself out to the public
as, a legal entity separate and distinct from any other entity (including any
Affiliate thereof) and shall otherwise conduct its business and own its assets
in its own name and shall correct any known misunderstanding regarding its
separate identity.

 

(viii)        The
sole assets of each Site Borrower are, and for the entire Term of the Loan
shall be, its respective Portfolio Property(ies).

 

(ix)          Each
Site Borrower shall observe all in all material respects the formalities
applicable to its form of organization.”

 

7.             Section 21 of the Loan
Agreement is amended by adding the following new subsection (     ):

 

“(     )                                    
Borrower has good and marketable fee simple title to the                               
Site, and good title to the Security described in the                               
Portfolio Mortgage, free and clear of all liens or encumbrances other than the
Permitted Exceptions set forth in the                               
Portfolio Mortgage and those which shall be released or removed on or prior to
the date hereof.”

 

8.             Exhibit A of the Loan
Agreement is hereby amended by incorporating the legal description of the                               
Site attached as Exhibit A hereto.

 

9.             Exhibit B of the Loan
Agreement is hereby deleted in its entirety and replaced with Exhibit B
attached hereto.

 

10.          Exhibit H of the Loan
Agreement is hereby deleted in its entirety and replaced with Exhibit H
attached hereto.

 

K-6

 

11.          Exhibit L of the Loan
Agreement is hereby deleted in its entirety and replaced with Exhibit L
attached hereto.

 

12.          Exhibit M of the Loan
Agreement is hereby deleted in its entirety and replaced with Exhibit M
attached hereto.

 

13.          Exhibit N of the Loan
Agreement is hereby amended by incorporating the rent roll for the                          
Site attached as Exhibit N hereto.

 

14.          The third paragraph of Section 3(a) of
the General Reserve Escrow Agreement is amended by deleting the words “                                                    
and No/100 Dollars ($              )”
and replacing it with the following:  “                                                   
and No/100 Dollars ($          )”.  [increase
by 8 basis points of new advance]

 

15.          [On the date hereof and pursuant to
the Tax Escrow Agreement, Prime Borrower and                               
Borrower have deposited with Escrow Holder the sum of $                   .  The deposit shall be deposited by Escrow
Holder into the Escrow Account and shall be governed by the applicable terms of
the Tax Escrow Agreement.]  [No deposit
is required from Prime Borrower and                       
Borrower pursuant to the Tax Escrow Agreement.]

 

16.          [The third paragraph of Section 3(a) of
the Tax Escrow Agreement is amended by deleting the figure “$                ”
and replacing it with the figure “$                ”.]  [The third paragraph of Section 3(a) of
the Tax Escrow Agreement is unamended by this Agreement.]

 

17.          [FOR
THE INITIAL ADVANCE ONLY]  Section 6
of the Environmental Indemnification Agreement is amended by adding the
following new subsections (b)-(f):

 

“(b)         Indemnitors have identified and made
available to Beneficiary all environmental investigations, studies, audits,
tests and other technical analyses conducted by, for, or in the possession or
control of Indemnitors in relation to the Security (the “Environmental
Reports”) as of the date of this Agreement, and all such Environmental
Reports are identified in Exhibit B attached hereto and made a part
hereof.  Except to the extent disclosed
in any of the Environmental Reports,  (i) Indemnitors
have not used and are not using, and to the Indemnitors’ actual knowledge, no
prior owner or current or prior tenant, subtenant, or other occupant of all or
any part of the Security has used or is using Hazardous Materials at, on, or
from the Security which constitutes a Violation, (ii) to the best of
Indemnitors’ knowledge, there has been no Disposal with respect to the Security
that could reasonably be expected to give rise to a liability under any
Hazardous Materials Law, (iii) to the best of Indemnitors’ knowledge, no
Disposal or threatened Disposal has occurred or is occurring at, on, under, in,
or from the Security for which any Hazardous Materials Law requires notice to
any person, further investigation, or any form of response action, and (iv) to
any Indemnitor’s actual knowledge, no underground storage tanks or underground
deposits of Hazardous Materials are or were located on any of the Security and
subsequently removed or filled;

 

(c)           Except to the extent disclosed in any
of the Environmental Reports, Indemnitors have not received, and to the
Indemnitors’ actual knowledge, no prior owner or current or prior tenant,
subtenant, or other occupant of all or any part of the Security have received,
any notice from any person or entity, public or private, alleging any Violation
of or potential liability or 

 

K-7

 

obligation
to perform any investigation or remediation activity under any Hazardous
Materials Law with regard to the Security. 
Nor have Indemnitors, nor to the best of Indemnitors’ knowledge has any
of the third parties described above, received any administrative order or
entered into any administrative consent order with any governmental agency with
respect to Hazardous Materials on or at the Security;

 

(d)           To the Indemnitors’ actual knowledge,
except to the extent disclosed in any of the Environmental Reports, the
Security does not contain, and has not in the past contained, any asbestos
containing material in friable form, and to the best of Indemnitors’  knowledge there is no current or potential
airborne contamination of the Security by asbestos fiber at concentrations
exceeding those allowed by the Hazardous Materials Laws, including any
potential contamination that would be caused by maintenance or tenant finish
activities in the Security;

 

(e)           All Indemnitors have received
adequate consideration for the execution, delivery and performance of
obligations under this Agreement, Indemnitors acknowledging that Beneficiary’s
making the Loan to Borrower has provided substantial benefit to Indemnitors and
Beneficiary would not have made the Loan to Borrower if Indemnitors had not
executed and delivered this Agreement to Beneficiary; and

 

(f)            Indemnitors represent and warrant
that prior to its acquisition of the Security, Borrower performed “all
appropriate inquiry” as defined under CERCLA.”

 

18.          All references in the Loan Documents,
including, without limitation, the Loan Agreement, to the General Reserve
Escrow Agreement, the Tax Escrow Agreement and the Environmental
Indemnification Agreement shall be deemed to refer to the General Reserve
Escrow Agreement, the Tax Escrow Agreement and the Environmental
Indemnification Agreement as amended by this Agreement.

 

19.          All references in the Loan Documents,
including, without limitation, the General Reserve Escrow Agreement, the Tax
Escrow Agreement and the Environmental Indemnification Agreement, to the Loan
Agreement shall be deemed to refer to the Loan Agreement as amended by this
Agreement.

 

20.          As an inducement to Lender to execute
this Agreement, Borrowers hereby represent and warrant to and for the benefit
of Lender, taking effect of this Agreement, that each of the representations
and warranties of the Borrowers contained in the Loan Agreement, the General
Reserve Escrow Agreement, the Tax Escrow Agreement and the Environmental
Indemnification Agreement were true as of the date on which they were made and
are also true as of the date hereof.

 

21.                                           
Borrower (i) hereby agrees to be bound by all of the terms of the Loan
Agreement, the General Reserve Escrow Agreement and the Tax Escrow Agreement,
as amended by this Agreement, applicable to Site Borrowers and to perform the
express and/or implied obligations of Site Borrowers set forth therein, and (ii) hereby
represents and warrants to and for the benefit of Lender that each of the
representations and warranties contained in the Loan Agreement, the General
Reserve Escrow Agreement and the Tax Escrow Agreement 

 

K-8

 

relative to the undersigned
as a Site Borrower and the                                     
Site as an Additional Portfolio Property or a Portfolio Property are true as of
the date hereof.

 

22.          Except as expressly set forth herein,
the Loan Agreement, the General Reserve Escrow Agreement, the Tax Escrow
Agreement and the Environmental Indemnification Agreement remain unchanged and
are hereby ratified and confirmed to be and remain in full force and effect.

 

*       *       *       *       *

 

[Signature
Page Follows]

 

K-9

 

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

 

	
  WITNESS:

  	
   

  	
  PRIME
  BORROWER:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STAG GI INVESTMENTS
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SITE
  BORROWERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

K-10

 

	
   

  	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONNECTICUT GENERAL LIFE
  INSURANCE COMPANY, a Connecticut Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  CIGNA INVESTMENTS, INC.,

  
	
   

  	
   

  	
   

  	
  Its Authorized Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

K-11

 

	
   

  	
   

  	
  ESCROW
  AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MIDLAND LOAN SERVICES, INC.,
  a Delaware Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

K-12

 

EXHIBIT A

 

LEGAL
DESCRIPTION

 

K-13

 

EXHIBIT B

SCHEDULE
OF LOAN DOCUMENTS

 

GENERAL

 

Master Loan Agreement

Real Estate Tax Escrow Account

General Reserve Escrow Account

Environmental Indemnification Agreement

Omnibus Amendment and Agreement

 

PORTFOLIO PROPERTIES

 

(CITY, STATE)

 

Mortgage Note A

Mortgage, Security Agreement and Fixture Filing

Assignment of Rents and Leases

UCC Financing Statement

Subordination, Non-Disturbance and Attornment Agreement

 

ADDITIONAL PORTFOLIO PROPERTIES

 

K-14

 

EXHIBIT H

 

PURCHASE
PRICES

 

K-15

 

EXHIBIT L

 

ALLOCATED LOAN AMOUNTS

 

K-16

 

EXHIBIT M

 

ORGANIZATIONAL
CHARTS

 

K-17

 

EXHIBIT N

 

RENT
ROLL

 

K-18

 

EXHIBIT L

 

ALLOCATED
LOAN AMOUNTS

 

	
  Site

  	
   

  	
  Allocated Loan Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (CITY, STATE)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Advanced

  	
   

  	
  $

  	
   

  

 

 

EXHIBIT M

 

ORGANIZATIONAL
CHARTS

 

 

EXHIBIT N

 

RENT ROLL

 

 

EXHIBIT O

 

FORM OF
ADDITIONAL ASSIGNMENT

 

ASSIGNMENT OF RENTS AND LEASES

 

This ASSIGNMENT OF RENTS AND
LEASES (this “Assignment”) is made as of the      
day of                      ,
20     , by                                          
[INSERT NAME OF NEW SITE BORROWER], a Delaware limited liability
company, having its principal place of business at c/o STAG Capital Partners,
LLC, 99 Chauncy Street, Boston, Massachusetts 02111 (“Assignor”), for
the benefit of CONNECTICUT GENERAL LIFE
INSURANCE COMPANY, a Connecticut corporation, having its principal
place of business at Wilde Building, A4-CRI, 900 Cottage Grove Road, Hartford,
Connecticut  06152, together with its
successors, affiliates, nominees, subsidiaries, investors, participants or
assignees (collectively, “Lender”).

 

W I T N E S S E T H:

 

WHEREAS, Lender has entered
into a Master Loan Agreement with STAG GI INVESTMENTS HOLDINGS, LLC, a Delaware
limited liability company (the “Prime Borrower”), dated as of July 9,
2010, as amended by an Omnibus Amendment and Agreement by and among Prime
Borrower and Assignor, among others, of even date herewith (as amended,
modified, substituted or supplemented from time to time, the “Loan Agreement”),
pursuant to which, inter alia, Lender has agreed, subject to the terms of the
Loan Agreement, to make a mortgage loan to Prime Borrower and Site Borrowers
(as defined below) in the maximum aggregate original principal amount of
Sixty-Three Million and No/100 Dollars ($63,000,000) (the “Loan” or the “Portfolio
Loan”);

 

WHEREAS, Prime Borrower
intends to own all of the membership interests in one or more special purpose
entities (each, a “Site Borrower” and, collectively, the “Site
Borrowers” and, together with the Prime Borrower, collectively and
individually, the “Borrower” or “Borrowers”) created to acquire
various parcels of real property and all improvements thereon and all rights
and appurtenances thereto (each, a “Site” and, collectively, the “Portfolio
Properties”);

 

WHEREAS, the Portfolio Loan
is evidenced and secured by (i) one or more promissory notes by Prime
Borrowers and one or more Site Borrowers (collectively and individually
referred to as the “Notes” or the “Portfolio Notes,” as the same
may be amended, modified, substituted or supplemented from time to time),
(ii) a mortgage, deed of trust, or indemnity deed of trust, assignment of
leases, rents and contracts, security agreement and fixture filing that
encumbers a Site (one from the applicable Site Borrower for each Site, each a “Portfolio
Mortgage,” and collectively the “Portfolio Mortgages,” as the same
may be amended, modified, substituted or supplemented from time to time) and
other items of collateral, and (iii) such other security agreements, loan
agreements, disbursement agreements, supplemental agreements, environmental
indemnity agreements, guaranties, assignments (both present and collateral) and

 

 

other instruments of
indebtedness or security, including, without limitation, those referenced in
the Loan Agreement (including the Notes, the Portfolio Mortgages, the Loan
Agreement and this Assignment, as the same may be amended, modified,
substituted or supplemented from time to time, the “Loan Documents”)
(all of the indebtedness and obligations under the Loan Documents being herein
called, the “Indebtedness”);

 

WHEREAS, pursuant to the
terms of the Loan Agreement, Lender will make an advance of the Loan proceeds
to Prime Borrower and Assignor, in the original principal amount of                                
and No/100 Dollars ($                     )
(the “                       
Advance”) together with interest thereon, as evidenced by a Mortgage Note            
(“Note           ”)
of even date herewith, by Prime Borrower and Assignor payable to the order of
Lender (“Note             
constituting one of the “Notes” as defined above);

 

WHEREAS, the                       
Advance is secured by, in addition to the other Loan Documents, a Mortgage
Security Agreement and Fixture Filing, of even date and record herewith, by
Assignor to Lender (the “                       Mortgage”);

 

WHEREAS, Assignor
constitutes a Site Borrower, the                         
Advance constitutes [the Initial Advance/an Additional Advance] (as defined in
the Loan Agreement), Note          
constitutes [the Initial Note/an Additional Note] (as defined in the Loan
Agreement), and the                     
Mortgage constitutes [the Initial Portfolio Mortgage/a Portfolio Mortgage];

 

WHEREAS Lender has required
an assignment of rents and leases affecting the real property and all of the
improvements thereon in the City/Town of                      ,
County of                               ,
and State/Commonwealth of                              
described in Exhibit A hereto (as more particularly described in
the                              
, the “Real Property”) as additional security for the Indebtedness.

 

NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lender and Assignor, in consideration of the foregoing, hereby
agree as follows:

 

I.  ASSIGNMENT

 

1.1.             Assignment of
Leases.  Assignor hereby presently,
irrevocably, absolutely and unconditionally transfers, assigns and sets over
unto Lender all of Assignor’s right, title, and interest in and to all present
and future leases, subleases, license agreements, concession agreements, lease
termination agreements, and other occupancy agreements of any nature, oral or
written, encumbering or affecting all or any part of the Real Property
(collectively, the “Leases”), including but not limited to the leases
listed on Exhibit B attached hereto (the “Schedule of Leases”),
together with all extensions, modifications, supplements, renewals, and
replacements thereof, now existing or hereafter made, and together with any and
all guarantees of the obligations of the tenants, licensees, concessionaires
and occupants thereunder (collectively, the “Tenants”), and also
together with the rights of Assignor to receive, hold and apply all bonds and
security in all of the Leases provided to be furnished to the lessor
thereunder, 

 

O-2

 

and also together with the
rights of Assignor to enforce any and all of the agreements, terms, covenants
and conditions in all of the Leases provided and to give notices thereunder.

 

1.2.             Assignment of
Rents.  Assignor hereby presently,
irrevocably, absolutely and unconditionally transfers, assigns and sets over
unto Lender all of Assignor’s right, title, and interest in and to all present
and future rents (including, without limitation, prepaid rents and additional
rents), parking revenues, income, profits, royalties, issues, security and
other deposits, refunds, rebates, receipts, fees (including, without
limitation, license fees, concession fees, lease termination fees, option
payments, reimbursements, and lease modification and extension fees), damages,
charges, and all other income and revenue of every kind and nature now existing
or hereafter arising out of, related to, or generated by the Leases, including
all proceeds and products thereof (collectively, the “Rents”).

 

1.3.             Assignment of
Security Deposit.  If any of
the Leases provide for a security deposit paid by any Tenant to Assignor (the “Security
Deposits”), Assignor hereby assigns its right, title and interest in and to
the Security Deposits to Lender. 
Assignor, however, shall have the right to retain the Security Deposits
so long as no Event of Default exists hereunder, provided Lender shall not be
obligated to any Tenant for any Security Deposit until Lender obtains
possession or control of the Security Deposit after an Event of Default.

 

1.4.             Assignment
Absolute.  This
Assignment shall be a present, irrevocable, absolute and unconditional
assignment, and shall, immediately upon execution, give Lender the right to sue
for, collect and receive all Rents and Security Deposits and to deal with the
Leases as the lessor thereunder.  Lender
shall have the right to notify the Tenants of the existence of this Assignment,
but Lender will not exercise its right to collect Rents or any other rights
under this Article I unless an Event of Default (as hereinafter defined)
occurs hereunder or under any of the other Loan Documents.  So long as there is no Event of Default, the
assignment in this Article I shall be subject to the limited license set
forth in Article II.

 

II.  LICENSE TO COLLECT

 

Lender grants to Assignor a
revocable license to hold and administer the Security Deposits and to collect
the Rents as they respectively become due and to enforce the Leases and to
exercise the rights of lessor thereunder, so long as there is no Event of
Default by Assignor hereunder.  Assignor
hereby irrevocably authorizes and directs that upon the occurrence of any Event
of Default, each of the Tenants under the Leases, upon receipt of a written
notice from Lender so demanding, are to pay all Rent and Security Deposits due
or which becomes due under its Lease to Lender.

 

O-3

 

III.  WARRANTIES AND COVENANTS

 

3.1.             Warranties of
Assignor.  Assignor
hereby warrants and represents the following:

 

(a)              Assignor is the
sole holder of the landlord’s or owner’s interest under the Leases and has good
right to sell, assign, transfer and set over the Leases and the Rents to
Lender;

 

(b)              Assignor has
made no assignment other than this Assignment of any of Assignor’s rights in
any of the Leases or the Rents (and other than any assignment with respect to
any loan being repaid in full with the proceeds of the Loan);

 

(c)              Except as
otherwise disclosed in writing to Lender, all of the Leases provide for Rent to
be paid monthly in advance, all Rent due to date has been collected and no Rent
has been collected more than one month in advance;

 

(d)              To the best of
Assignor’s actual knowledge, and except as otherwise disclosed in writing to
Lender, no Tenant under any of the Leases has any defense, set off or
counterclaim against Assignor;

 

(e)              The Schedule of
Leases attached as Exhibit B lists all of the Leases currently in
effect for the Real Property;

 

(f)               Each of the
Leases and any amendments thereto submitted by Assignor to Lender constitutes
the entire agreement between the parties thereto, and to Assignor’s actual
knowledge there are no agreements, undertakings, representations, or
warranties, either oral or written, which have not been submitted to Lender;

 

(g)              To the best of
Assignor’s actual knowledge, each of the Leases is valid, in full force and
effect, and enforceable in accordance with its terms; and

 

(h)              Except as
otherwise disclosed in writing to Lender, no rental concession in the form of
any period of free rent or any other waiver, release, reduction, discount or
other alteration of the Rent due or to become due has been granted by Assignor
or, to the best of Assignor’s actual knowledge, any prior landlord to any
Tenant under the Leases for any period subsequent to the effective date of this
Assignment.

 

3.2.             Covenants of
Assignor.  Assignor
hereby covenants and agrees that Assignor shall:

 

(a)              Fulfill,
perform and observe in all material respects all of the obligations of landlord
under the Leases;

 

(b)              Give prompt
written notice to Lender of any default or claim of default by Assignor or by
any Tenant under any of the Leases, of which Assignor has notice, along with a
complete copy of any written notice of such default or claim of default;

 

O-4

 

(c)              Enforce, short
of termination, the performance in all material respects of the Leases by the
Tenants;

 

(d)              Except as
otherwise provided in the Loan Agreement, not alter, modify, amend, terminate
or cancel any of the Leases, nor accept a surrender of any of the Leases, nor
waive any term or condition of any of the Leases without the prior written
consent of Lender;

 

(e)              Not collect or
accept Rent more than one (1) month in advance of the time any such Rent
becomes due;

 

(f)               Except as
otherwise provided in the Loan Agreement, not execute any future Leases (or any
amendments, modifications, extensions or renewals thereof), nor consent to the
assignment of Tenant’s interest under any of the Leases, nor consent to the
subletting thereunder without the prior written consent of Lender;

 

(g)              Not execute any
further assignment of the landlord’s interest under any of the Leases or of the
Rents or any interest therein or suffer or permit such to occur by operation of
law;

 

(h)              Not permit any
of the Leases to become subordinate to any lien other than the lien of the              
Mortgage;

 

(i)               Except as otherwise
provided in the Loan Agreement, not alter, modify, change, release, waive,
cancel, nor terminate the terms of any guarantee of any of Tenant’s obligations
under any of the Leases in whole or in part without the prior written consent
of Lender; and

 

(j)               Not take any
action which will cause or permit the estate of any Tenants under the Leases to
merge with Assignor’s interest in the Real Property.

 

3.3.          Covenant of
Lender.  Upon the payment in full of
the Indebtedness, or upon the satisfaction of the applicable conditions in the
Loan Agreement relating to substitution or partial release of the Property,
this Assignment shall be terminated and released by Lender without further
action and shall thereupon be of no further force or effect.

 

ARTICLE IV.  DEFAULTS; LENDER’S REMEDIES

 

4.1.          Events of
Default.  The occurrence of an “Event of
Default” under, and as defined and described in, the Loan Agreement, the Notes,
the Portfolio Mortgages or any other of the Loan Documents shall constitute an “Event
of Default” hereunder.

 

4.2.             Remedies.  Upon an Event of Default, Lender may at any
time thereafter, at its option and without notice or demand of any kind, and
without regard to the adequacy of security for payment of the Indebtedness,
exercise any or all of the following remedies to the extent permitted by
applicable law and subject to the Loan Agreement:

 

(a)              Declare all of
the Indebtedness immediately due and payable;

 

O-5

 

(b)              Take physical
possession of the Real Property and of all books, records, documents and
accounts relating to the Real Property and the Assignor’s business thereon, and
manage and operate the Real Property and the Assignor’s business thereon
without interference from Assignor, at Assignor’s expense, including, without
limitation, the right to rent and lease the Real Property and to hire a manager
for the Real Property;

 

(c)              With or without
taking possession of the Real Property, collect the Rents and any other sums
owing under any of the Leases, either by itself or through a receiver, the
license to collect Rents given to Assignor by Lender pursuant to Article II
hereof being deemed automatically revoked upon an Event of Default, and
Assignor hereby consenting to the appointment of a receiver upon the occurrence
of an Event of Default;

 

(d)              In Assignor’s
or Lender’s name, institute any legal or equitable action which Lender, in its
sole discretion, deems desirable to collect any or all of the Rents;

 

(e)              Perform any or
all obligations of Assignor under any of the Leases or this Assignment and take
such actions as Lender deems appropriate to protect its security, including,
without limitation:  (i) appearing
in any action or proceeding affecting any of the Leases or the Real Property;
(ii) executing new leases and modifying, terminating or canceling existing
Leases; (iii) collecting, modifying and compromising any Rents payable
under the Leases; and (iv) enforcing any of the Leases, including, if
necessary, evicting tenants; and

 

(f)               Any other remedies
permitted to Lender under applicable law.

 

The foregoing remedies are
in addition to any remedies afforded Lender under any other of the Loan
Documents or in law or equity, by statute or otherwise, all of which rights and
remedies are reserved by Lender.  All of
the remedies of Lender shall be cumulative and may be exercised at Lender’s
option concurrently or successively and the exercise or beginning of exercise
by Lender of any such remedies shall not preclude the simultaneous or
subsequent exercise of the same remedy or any other remedy available to
Lender.  No failure or delay on the part
of Lender to exercise any remedy shall operate as a waiver thereof.

 

4.3.             Application of
Proceeds.  Any amounts
collected by Lender hereunder shall be applied by Lender, to pay, in such order
as Lender shall elect, the Indebtedness, including all principal; accrued,
unpaid interest; prepayment fees; late charges; advances; and all costs and
expenses, including attorneys’ fees, incurred by Lender in operating, protecting,
preserving and realizing on Lender’s interest in the Real Property including
any fees incurred in the representation of Lender in any proceeding under Title
11, United States Code; and any other amount due under the Loan Agreement, the
Notes, the Portfolio Mortgages or any other of the other Loan Documents.

 

It is understood and agreed
that neither the assignment of the Rents to Lender nor the exercise by Lender
of any of its rights or remedies under this Assignment shall be deemed to make
Lender a “mortgagee-in-possession” or otherwise responsible or liable in any
manner with respect to the Real Property or the use, occupancy, enjoyment or
operation of all or any portion thereof, unless and until Lender, in person or
through its authorized agent, assumes actual possession thereof and executes
and records a Certificate of Entry under M.G.L. Chapter 244, 

 

O-6

 

Sections 1 and 2 [confirm whether any local law provision],
nor shall appointment of a receiver by any court at the request of Lender or by
agreement with Assignor or the entering into possession of the Real Property or
any part thereof by such receiver be deemed to make Lender a “mortgagee-in-possession”
or otherwise responsible or liable in any manner with respect to the Real
Property or the use, occupancy, enjoyment or operation of all or any portion
thereof.

 

ARTICLE V.  NO LIABILITY, INDEMNIFICATION

 

5.1.             No Liability.  Nothing in this Assignment shall be construed
to impose upon Lender any obligation or responsibility to any Tenant under any
of the Leases or to any other third party for the control, care, management or
repair of the Real Property, the performance of any of the landlord’s
obligations under the Leases, or for any dangerous or defective condition on
the Real Property.

 

5.2.             Indemnification.  Assignor shall indemnify and hold Lender
harmless from and against all obligations, liabilities, losses, costs,
expenses, civil fines, penalties or damages (including attorneys’ fees) which
Lender may incur by reason of this Assignment or in connection with any of the
Leases or with regard to the Real Property prior to such time as Lender takes
actual physical possession (to the exclusion of Assignor) of the Real Property
after an Event of Default, provided that such indemnity shall not apply to
(i) any liabilities, losses, costs, expenses, fines, penalties or damages, etc.,
arising on account of the gross negligence or willful misconduct of Lender or
(ii) any income or franchise taxes imposed on Lender.  Assignor shall, with counsel reasonably
satisfactory to Lender, defend Lender against any claim or litigation involving
Lender for the same.  Should Lender incur
such obligation, liability, loss, cost, expense, civil fine, penalty or damage,
Assignor shall reimburse Lender upon demand. 
Any amount owed Lender under this provision shall bear interest at the “Default
Rate” defined and described in the Loan Agreement and shall be secured by the
Loan Documents.

 

ARTICLE VI.  MISCELLANEOUS

 

6.1.             Modifications, Etc.  Assignor hereby consents and agrees that
Lender may at any time and from time to time, without notice to or further
consent from Assignor, either with or without consideration, surrender any
property or other security of any kind or nature whatsoever held by Lender or
by any person, firm or corporation on Lender’s behalf or for its account,
securing the Indebtedness; substitute for any collateral so held by Lender,
other collateral of like kind, or of any kind; agree to modification of the terms
of the Loan Agreement, the Notes, the Portfolio Mortgages or any of the other
Loan Documents; extend or renew the Loan Agreement, the Notes, the Portfolio
Mortgages or any of the other Loan Documents for any period; grant releases,
compromises and indulgences with respect to the Loan Agreement, the Notes, the
Portfolio Mortgages or any of the other Loan Documents to any person or
entities now or hereafter liable thereunder or hereunder; release any guarantor
or endorser of the Loan Agreement, the Notes, the Portfolio Mortgages or any of
the other Loan Documents; or take or fail to take any action of any type
whatsoever; and no such action which Lender shall take or fail to take in
connection with the Loan Documents, or any of them, or any security for the
payment of the Indebtedness or for the performance of any obligations or
undertakings of Assignor, nor any course of dealing with Assignor or any other
person, shall release Assignor’s obligations hereunder, affect this Assignment
in any way or afford Assignor any recourse against Lender, 

 

O-7

 

other than for Lender’s
gross negligence or willful misconduct. 
The provisions of this Assignment shall extend and be applicable to all
renewals, amendments, extensions, consolidations and modifications of the Loan
Documents and the Leases, and any and all references herein to the Loan
Documents, or the Leases shall be deemed to include any such renewals,
amendments, extensions, consolidations or modifications thereof.

 

6.2.             Further
Assurance.  At any time
and from time to time, upon reasonable request by Lender, Assignor will make,
execute and deliver, or cause to be made, executed and delivered, to Lender
and, where appropriate, cause to be recorded and/or filed and from time to time
thereafter to be re-recorded and/or refiled at such time and in such offices
and places as shall be deemed desirable by Lender, any and all such other and
further assignments, deeds to secure debt, mortgages, deeds of trust, security
agreements, financing statements, continuation statements, instruments of
further assurance, certificates and other documents as may, in the reasonable
opinion of Lender, be necessary or desirable in order to effectuate, complete,
or perfect, or to continue and preserve (a) the obligations of Assignor
under this Assignment and (b) the security interest created by this
Assignment as a first and prior security interest upon the Leases and the
Rents, provided that the same are consistent with and do not materially
increase the obligations of Assignor under the Loan Documents.  Upon any failure by Assignor so to do, Lender
may make, execute, record, file, re-record and/or refile any and all such
assignments, deeds to secure debt, mortgages, deeds of trust, security agreements,
financing statements, continuation statements, instruments, certificates, and
documents for and in the name of Assignor, and Assignor hereby irrevocably
appoints Lender the agent and attorney in fact of Assignor so to do.

 

6.3.             Successors and
Assigns.  All of the terms and
conditions of this Assignment are hereby made binding upon the executors,
heirs, administrators, successors and permitted assigns of both Lender and
Assignor, including any trustee or debtor-in-possession appointed in any proceeding
under Title 11, United States Code.

 

6.4.             Notices.  Any notice, demand, request, statement,
consent or other communication made hereunder shall be in writing, signed by
the party giving such notice, request, demand, statement, consent or other
communication, and shall be deemed to have been properly given when delivered
in accordance with the terms of the Loan Agreement.

 

6.5.             Governing Law.  Except as may be otherwise expressly provided
in this Assignment or in any other Loan Document, all claims relating, in any
way, to the negotiation and/or consummation of the Portfolio Loan, Lender’s
relationship with the Borrowers in connection with the Portfolio Loan and/or
the performance of any obligation under any of the Loan Documents shall in all
respects be governed, construed, applied and enforced in accordance with the
internal laws of the Commonwealth of Massachusetts (the “State”) without
regard to principles of conflicts of law. 
Notwithstanding the foregoing choice of law:

 

(a)           the procedures
governing the creation, perfection and priority of the liens pertaining to the
Real Property and the
enforcement by Lender of its rights and remedies under this Assignment and the
other Loan Documents with respect to the Real Property, including without
limitation, actions for foreclosure, for injunctive relief or for 

 

O-8

 

appointment of a receiver,
shall be governed by the laws of the state where the Real Property is located;
and

 

(b)           Lender shall
comply with applicable law in the state where the Real Property is located to
the extent required by the law of such jurisdiction in connection with the
foreclosure of the liens created by this Assignment and the other Loan
Documents with respect to the Real Property.

 

Nothing
contained herein or in any provisions of the other Loan Documents shall be
construed to provide that the substantive law of the state where the Real
Property is located shall apply to any parties’ rights and obligations under
any of the Loan Documents, which, except as expressly provided above, are and
shall continue to be governed by the substantive law of the State.  In addition, the fact that portions of the
Loan Documents may include provisions drafted to conform to the law of the
state where the Real Property is located is not intended, nor shall it be
deemed, in any way, to derogate the parties’ choice of law as set forth or
referred to in this Assignment or in the other Loan Documents.  The parties further agree that Lender may
enforce its rights under the Loan Documents, including, without limitation, its
rights to sue Assignor or to collect any outstanding indebtedness in accordance
with the State law, subject to clauses (a) and (b) above.

 

Assignor
hereby consents to personal jurisdiction in any state or federal court located
within the State, as well as to the jurisdiction of all courts from which an
appeal may be taken from the courts within the State, for the purposes of any
suit, action or other proceeding arising out of, or with respect to, any of the
Loan Documents, the negotiation and/or consummation of the Portfolio Loan,
Lender’s relationship with Assignor or any other Borrower in connection with
the Portfolio Loan and/or the performance of any obligation or the exercise of
any remedy under any of the Loan Documents, and expressly waives any and all
objections it may have as to venue in any of such courts.

 

6.6.             Captions;
Counterparts.  The
captions of this Assignment are inserted only as a matter of convenience and
for reference, and are not and shall not be deemed to be any part hereof.  This Assignment and all of the other Loan
Documents may be signed in any number of counterparts, each of which shall be
an original and all of which, together, shall constitute one and the same
instrument.

 

6.7.             Exhibits.  All Exhibits referred to herein and attached
hereto are hereby incorporated and made a part of this Assignment.

 

6.8.             No Oral
Modifications; Amendments.  No
oral amendment to this Assignment shall be binding on the parties hereto.  Any modification of or amendment to this
Assignment must be in writing signed by both parties.

 

6.9.             Terms.  Common nouns and pronouns shall be deemed to
refer to the masculine, feminine, neuter, singular and plural, as the identity
of the person or persons, firm or corporation may in the context require.

 

6.10.           Invalidity.  If any provision of this Assignment shall be
held invalid, the same shall not affect in any respect whatsoever the validity
of the remainder of this Assignment.

 

O-9

 

6.11.           Attorneys’ Fees.  Any reference to “attorney fees,” “attorney’s
fees” or “attorneys’ fees” in this document includes but is not limited to the
fees, charges and costs incurred by Lender through its retention of outside
legal counsel and the reasonably allocated fees, costs and charges for services
rendered by Lender’s in-house counsel. 
Any reference to “attorney fees”, “attorney’s fees,” or “attorneys’ fees”
shall also include but not be limited to those attorneys or legal fees, costs
and charges incurred by Lender following an Event of Default in the collection
of any Indebtedness (or any portion thereof), the enforcement of any
obligations hereunder, the protection of the Real Property, the foreclosure of
(or exercise of power under) the Portfolio Mortgages, the sale of the Real
Property, the defense of actions arising hereunder and the collection,
protection or set off of any claim the Lender may have in a proceeding under
Title 11, United States Code. 
Attorney’s fees provided for hereunder shall accrue whether or not
Lender has provided notice of an Event of Default or of an intention to
exercise its remedies for such Event of Default.

 

6.12.           WAIVER OF TRIAL
BY JURY.  ASSIGNOR AND LENDER HEREBY
WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY AS TO ANY MATTER ARISING OUT
OF OR CONCERNING THE SUBJECT MATTER OF THIS ASSIGNMENT.

 

6.13.           Joint and
Several Liability.  If more
than one person, corporation, partnership or other entity shall execute this
Assignment, then each person and entity shall be fully liable for all
obligations of Assignor hereunder, and such obligations shall be joint and
several.

 

6.14            Nonrecourse.  The provisions set forth in Section 14
of the Notes are hereby incorporated herein by reference, mutatis  mutandis,
and shall be applicable to this Assignment as if set forth in full herein.

 

6.15.           Definitions.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed to those terms in the Loan Agreement.

 

[SIGNATURES ON NEXT PAGE]

 

O-10

 

 

 

In Witness whereof, Assignor
has duly executed this Assignment as a sealed instrument on the day and year
first above written.

 

	
   

  	
   

  
	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

COMMONWEALTH OF
MASSACHUSETTS

 

COUNTY OF SUFFOLK

 

On this
              
day of
                ,
20    , before me, the undersigned notary public,
personally appeared
                                  ,
proved to me through satisfactory evidence of identification, which was
personal knowledge of identity, to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he signed it
voluntarily for its stated purpose as the
             of
                                                  .

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

O-11

 

EXHIBIT A

TO

ASSIGNMENT
OF RENTS AND LEASES

Description
of Real Property

 

O-12

 

EXHIBIT B

TO

ASSIGNMENT
OF RENTS AND LEASES

Schedule
of Leases

 

Lease dated
                              ,
by and between                                         
[predecessor in interest to [INSERT NAME OF SITE BORROWER]], as Landlord, and
                                        ,
as tenant, as amended by First Amendment to Lease dated
                                        .

 

O-13

 

MASTER LOAN AGREEMENT

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Incorporation of Recitals;
  Defined Terms

  	
  2

  
	
  2.

  	
  Initial Advance and
  Additional Advances

  	
  2

  
	
  3.

  	
  Allocation of Loan Amount

  	
  13

  
	
  4.

  	
  Payment of Indebtedness

  	
  13

  
	
  5.

  	
  Usury

  	
  13

  
	
  6.

  	
  Impositions

  	
  14

  
	
  7.

  	
  Tax Deposits

  	
  14

  
	
  8.

  	
  Change in Taxes

  	
  16

  
	
  9.

  	
  Sidewalks, Municipal
  Charges

  	
  17

  
	
  10.

  	
  Insurance

  	
  17

  
	
  11.

  	
  Insurance/Condemnation
  Proceeds

  	
  19

  
	
  12.

  	
  Restoration Following Fire
  and Other Casualty or Condemnation

  	
  20

  
	
  13.

  	
  Disposition of
  Condemnation or Insurance Proceeds

  	
  21

  
	
  14.

  	
  Fire and Other Casualty;
  Self-Help

  	
  23

  
	
  15.

  	
  Rent Insurance Proceeds

  	
  23

  
	
  16.

  	
  Transfers; Encumbrances

  	
  24

  
	
  17.

  	
  Right to Transfer
  Portfolio Properties

  	
  24

  
	
  18.

  	
  Right to Change Ownership
  Interests in Borrower

  	
  26

  
	
  19.

  	
  Substitution of Collateral

  	
  26

  
	
  20.

  	
  Prepayment Limitations;
  Release of a Site

  	
  28

  
	
  21.

  	
  Representations and
  Warranties

  	
  29

  
	
  22.

  	
  OFAC and Patriot Act
  Provisions

  	
  30

  
	
  23.

  	
  Leases; Property
  Management

  	
  33

  
	
  24.

  	
  Financial Reporting

  	
  35

  
	
  25.

  	
  Plans and Specifications

  	
  36

  
	
  26.

  	
  Repair; Alterations;
  Waste; ADA

  	
  36

  
	
  27.

  	
  [Intentionally deleted]

  	
  38

  
	
  28.

  	
  General Reserve Escrow
  Agreement

  	
  38

  
	
  29.

  	
  Event of Default

  	
  38

  
	
  30.

  	
  Remedies

  	
  39

  
	
  31.

  	
  Acceleration Interest

  	
  40

  
	
  32.

  	
  Late Charge

  	
  40

  
	
  33.

  	
  Estoppel Certificate

  	
  40

  
	
  34.

  	
  Nonrecourse

  	
  40

  
	
  35.

  	
  Notices

  	
  42

  
	
  36.

  	
  Participation

  	
  44

  
	
  37.

  	
  Lender Costs and Expenses

  	
  44

  
	
  38.

  	
  Further Assurances

  	
  45

  
	
  39.

  	
  Continued Existence

  	
  45

  
	
  40.

  	
  Rights Personal to
  Borrowers

  	
  45

  
	
  41.

  	
  Master Loan Agreement Governs

  	
  45

  
	
  42.

  	
  Miscellaneous

  	
  46

  

 

i

 

	
  EXHIBIT A

  	
   

  	
  Legal Description of
  Portfolio Properties

  
	
  EXHIBIT B

  	
   

  	
  Schedule of Loan Documents

  
	
  EXHIBIT C

  	
   

  	
  Tenant Estoppel
  Certificate

  
	
  EXHIBIT D

  	
   

  	
  Subordination,
  Non-Disturbance and Attornment Agreement

  
	
  EXHIBIT E

  	
   

  	
  Survey Requirements

  
	
  EXHIBIT F

  	
   

  	
  Surveyor’s Certificate

  
	
  EXHIBIT G

  	
   

  	
  Form of Opinions

  
	
  EXHIBIT H

  	
   

  	
  Purchase Prices

  
	
  EXHIBIT I

  	
   

  	
  Form of Note

  
	
  EXHIBIT J

  	
   

  	
  Form of Additional
  Portfolio Mortgage

  
	
  EXHIBIT K

  	
   

  	
  Form of Omnibus Amendment
  to Loan Documents

  
	
  EXHIBIT L

  	
   

  	
  Allocated Loan Amounts

  
	
  EXHIBIT M

  	
   

  	
  Organizational Charts

  
	
  EXHIBIT N

  	
   

  	
  Rent Roll

  
	
  EXHIBIT O

  	
   

  	
  Form of Additional
  Assignment

  

 

ii

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