Document:

<PAGE>

                                                                    EXHIBIT 10.1

                       NASTECH PHARMACEUTICAL COMPANY INC.
                            2004 STOCK INCENTIVE PLAN
                        RESTRICTED STOCK GRANT AGREEMENT

     This Restricted Stock Grant Agreement (the "Agreement") is entered into
this 14th day of July, 2006, by and between Nastech Pharmaceutical Company Inc.
(the "Company"), a Delaware Corporation, and Bruce R. York ("Grantee").

GRANT OF RESTRICTED STOCK

     Grant of Restricted Stock. Pursuant to, and subject to, the terms and
conditions set forth herein and in the Nastech Pharmaceutical Company Inc. 2004
Stock Incentive Plan (the "Plan"), the Company hereby grants to the Grantee
3,093 restricted shares (the "Restricted Stock") of common stock of the Company
("Common Stock").

     Grant Date. The Grant Date of the Restricted Stock is July 14, 2006.

     Incorporation of Plan. All terms, conditions and restrictions of the Plan
are incorporated herein and made part hereof as if stated herein. If there is
any conflict between the terms and conditions of the Plan and this Agreement,
the terms and conditions of the Plan, as interpreted by the Compensation
Committee of the Board of Directors of the Company (the "Committee"), shall
govern. Except as otherwise provided herein, all capitalized terms used herein
shall have the meaning given to such terms in the Plan.

VESTING

     Vesting. Subject to the further provision of this Agreement, the Restricted
Stock shall vest with respect to a number of whole shares as close as possible
to the following percentage of the total number of shares of Restricted Stock
granted hereunder on the following dates (each, a "Vesting Date"):

<TABLE>
<CAPTION>
PERCENTAGE OF TOTAL SHARES            VESTING DATE
--------------------------   -----------------------------
<S>                          <C>
           33.3%             1st anniversary of Grant Date
           33.3%             2nd anniversary of Grant Date
           33.3%             3rd anniversary of Grant Date
</TABLE>

TERMINATION OF EMPLOYMENT

     Termination of Employment. In the event that the Grantee's employment
(which for purposes of this Agreement shall include service as a director or
consultant) with the Company or one of the Company's subsidiaries terminates for
any reason, all unvested shares of Restricted Stock, together with any property
in respect of such shares held by the custodian pursuant to Section 4.3 hereof,
shall be forfeited as of the date of such termination of employment and the
Grantee promptly shall return to the Company any certificates evidencing such
shares. For purposes of this Agreement, the Grantee shall be deemed to have
terminated employment or incurred a termination of employment upon (i) the date
the Grantee ceases to be employed by, or to provide consulting services for, the
Company or any Company subsidiary; or (ii) the date the Grantee ceases to be a
Board member, provided, however, that if the Grantee (x) at the time of
reference is both an employee or consultant and a Board member, or (y) ceases to
be engaged as an employee, consultant or Board member and immediately is engaged
in another of such relationships with the Company or any Company subsidiary, the
Grantee shall not be deemed to have a "termination of employment" until the last
of the dates determined pursuant to subparagraphs (i) and (ii) above. The
Committee, in its discretion, may determine whether any leave of absence
constitutes a termination of employment for purposes of this Agreement.

RESTRICTIONS

     Restrictions on Transferability. Until a share of Restricted Stock vests,
such share may not be sold, assigned, transferred, alienated, commuted,
anticipated, or otherwise disposed of (except by will or the laws of descent and
distribution), or pledged or hypothecated as collateral for a loan or as
security for the performance of any obligation, or be otherwise encumbered, and
are not subject to attachment, garnishment, execution or other legal or
equitable process, and any attempt to do so shall be null and void. If the
Grantee attempts to dispose of or encumber the Grantee's unvested shares of
Restricted Stock, such shares of Restricted Stock, together with any property in
respect of such shares held by the custodian pursuant to Section 4.3 hereof,
shall be forfeited as of the date of such attempted transfer and the Grantee
promptly shall return to the Company any certificates evidencing such shares.

     Issuance of Certificates.

     (a) Reasonably promptly after the Grant Date, the Company shall issue and
deliver to the Grantee stock certificates, registered in the name of the
Grantee, evidencing the shares of Restricted Stock. Each such certificate may
bear the following legend:

     "THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION ENCUMBRANCE OR OTHER
DISPOSAL OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
TERMS OF THE NASTECH PHARMACEUTICAL COMPANY INC. 2004 STOCK INCENTIVE PLAN AND A
RESTRICTED STOCK GRANT AGREEMENT BETWEEN NASTECH PHARMACEUTICAL COMPANY INC. AND
THE HOLDER OF RECORD OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE. NO
TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IN CONTRAVENTION OF
SUCH PLAN AND RESTRICTED STOCK GRANT AGREEMENT SHALL BE VALID OR EFFECTIVE.
COPIES OF SUCH AGREEMENT MAY BE OBTAINED BY WRITTEN REQUEST MADE BY THE HOLDER
OF RECORD OF THE CERTIFICATE TO THE SECRETARY OF NASTECH PHARMACEUTICAL COMPANY
INC."

     Such legend shall not be removed from such certificates until such shares
of Restricted Stock vest.

     (b) Reasonably promptly after any such shares of Restricted Stock vest
pursuant to Section 2.1 hereof, in exchange for the surrender to the Company of
the certificates evidencing such shares of Restricted Stock delivered to the
Grantee under Section 4.2(a) hereof, the Company shall

<PAGE>

issue and deliver to the Grantee (or the Grantee's legal representative,
beneficiary or heir) certificates evidencing such shares of Restricted Stock,
free of the legend provided in Section 4.2(a) hereof, together with any property
in respect of such shares held by the custodian pursuant to Section 4.3 hereof.

     (c) The Company may require as a condition of the delivery of stock
certificates pursuant to Section 4.2(b) hereof that the Grantee remit to the
Company an amount sufficient in the opinion of the Company to satisfy any
federal, state and other governmental tax withholding requirements related to
the vesting of the shares represented by such certificate.

     (d) The Grantee shall not be deemed for any purpose to be, or have rights
as, a shareholder of the Company by virtue of the grant of Restricted Stock,
except to the extent a stock certificate is issued therefore pursuant to Section
4.2(a) hereof, and then only from the date such certificate is issued. Upon the
issuance of a stock certificate, the Grantee shall have the rights of a
shareholder with respect to the Restricted Stock, including the right to vote
the shares, subject to the restrictions on transferability, the forfeiture
provisions and the requirement that dividends be held in escrow until the shares
vest, as set forth in this Agreement.

     Dividends, etc. Unless the Committee otherwise determines, any property,
including cash dividends, received by a Grantee with respect to a share of
Restricted Stock as a result of any dividend, recapitalization, merger,
consolidation, combination, exchange of shares or otherwise and for which the
Grant Date occurs prior to such event but which has not vested as of the date of
such event, will not vest until such share of Restricted Stock vests, and shall
be promptly deposited with the Company or a custodian designated by the Company.
The Company shall or shall cause such custodian to issue to the Grantee a
receipt evidencing the property held by it in respect of the Restricted Stock.

MISCELLANEOUS

     Delays or Omissions. No delay or omission to exercise any right, power or
remedy accruing to any party hereto upon any breach or default of any party
under this Agreement, shall impair any such right, power or remedy of such
party, nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default thereafter
occurring, nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of any
party of any breach or default under this Agreement, or any waiver on the part
of any party or any provisions or conditions of this Agreement, must be in a
writing signed by such party and shall be effective only to the extent
specifically set forth in such writing.

     Right of Discharge Preserved. Nothing in this Agreement shall confer upon
the Grantee the right to continue in the employ or other service of the Company
or one of the Company's subsidiaries, or affect any right which the Company may
have to terminate such employment or service.

     Integration. This Agreement contains the entire understanding of the
parties with respect to its subject matter. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings
with respect to the subject matter hereof other than those expressly set forth
herein. This Agreement, including, without limitation, the Plan, supersedes all
prior agreements and understandings between the parties with respect to its
subject matter.

     Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

     Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware, without regard to
the provisions governing conflict of laws.

     Grantee Acknowledgment. The Grantee hereby acknowledges receipt of a copy
of the Plan. The Grantee hereby acknowledges that all decisions, determinations
and interpretations of the Committee in respect of the Plan, this Agreement and
the Restricted Stock shall be final and conclusive.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its duly authorized officer, and the Grantee has hereunto signed
this Agreement on his own behalf, thereby representing that he has carefully
read and understands this Agreement and the Plan as of the day and year first
written above.

                                        NASTECH PHARMACEUTICAL COMPANY INC.

                                        By: /s/ Philip C. Ranker
                                            ------------------------------------
                                        Name: Philip Ranker
                                        Title: CFO

                                        /s/ Bruce R. York
                                        ----------------------------------------
                                        Bruce R. Yorkexv10w40

 

Exhibit 10.40

LOAN AGREEMENT

by and between

ASSET CAPITAL PARTNERS, L.P., a Delaware limited partnership,

as Borrower

and

CITIZENS BANK OF PENNSYLVANIA, a Pennsylvania banking corporation,

as Lender,

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE I General Information
	 	 	1	 
	Section 1.1 Schedules
	 	 	1	 
	Section 1.2 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Advances of the Loan
	 	 	2	 
	Section 2.1 The Loan
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties
	 	 	4	 
	Section 3.1 Organization, Power and Authority of Borrower; Loan Documents
	 	 	4	 
	Section 3.2 Authorization; Enforceability
	 	 	4	 
	Section 3.3 Organizational Documents
	 	 	4	 
	Section 3.4 Tenant Estoppels
	 	 	4	 
	Section 3.5 Other Documents; Laws
	 	 	4	 
	Section 3.6 Taxes
	 	 	5	 
	Section 3.7 Legal Actions
	 	 	5	 
	Section 3.8 Nature of Loan
	 	 	5	 
	Section 3.9 Trade Names
	 	 	5	 
	Section 3.10 Financial Statements
	 	 	5	 
	Section 3.11 ERISA and Prohibited Transactions
	 	 	5	 
	Section 3.12 Compliance with Zoning and Other Requirements
	 	 	6	 
	Section 3.13 Other Liens
	 	 	6	 
	Section 3.14 No Material Adverse Change
	 	 	6	 
	Section 3.15 Access; Roads
	 	 	6	 
	Section 3.16 Leases
	 	 	6	 
	Section 3.17 Federal Reserve Regulations
	 	 	6	 
	Section 3.18 Investment Company Act
	 	 	7	 
	Section 3.19 Unregistered Securities
	 	 	7	 
	Section 3.20 Accuracy of Information
	 	 	7	 
	Section 3.21 Anti-Terrorism Regulations
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV Affirmative Covenants and Agreements
	 	 	8	 
	Section 4.1 Use of Proceeds
	 	 	8	 
	Section 4.2 Inspections; Cooperation
	 	 	8	 
	Section 4.3 Payment and Performance of Contractual Obligations
	 	 	9	 
	Section 4.4 Insurance
	 	 	9	 
	Section 4.5 Adjustment of Condemnation and Insurance Claims
	 	 	10	 
	Section 4.6 Utilization of Net Proceeds
	 	 	11	 
	Section 4.7 Leases
	 	 	11	 
	Section 4.8 Books and Records; Financial Statements; Tax Returns
	 	 	12	 
	Section 4.9 Debt Service Coverage
	 	 	12	 
	Section 4.10 Estoppel Certificates
	 	 	12	 
	Section 4.11 Taxes
	 	 	13	 
	Section 4.12 Notification by Borrower
	 	 	13	 
	Section 4.13 Indemnification by Borrower
	 	 	13	 
	Section 4.14 Fees and Expenses
	 	 	13	 

i

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 4.15 Negative Covenants
	 	 	14	 
	Section 4.16 Appraisals
	 	 	14	 
	Section 4.17 Publicity
	 	 	14	 
	 
	 	 	 	 
	ARTICLE V Conditions to Closing
	 	 	15	 
	Section 5.1 Pre-Closing Requirements
	 	 	15	 
	Section 5.2 Security
	 	 	15	 
	Section 5.3 Opinion of Counsel
	 	 	16	 
	Section 5.4 Appraisal
	 	 	16	 
	Section 5.5 Additional Security
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VI Events of Default
	 	 	16	 
	Section 6.1 Payment Default
	 	 	16	 
	Section 6.2 Default Under Other Loan Documents
	 	 	17	 
	Section 6.3 Accuracy of Information; Representations and Warranties
	 	 	17	 
	Section 6.4 Deposits
	 	 	17	 
	Section 6.5 Insurance Obligations
	 	 	17	 
	Section 6.6 Other Obligations
	 	 	17	 
	Section 6.7 Mechanic’s Lien
	 	 	17	 
	Section 6.8 Bankruptcy
	 	 	18	 
	Section 6.9 Judgment
	 	 	18	 
	Section 6.10 Dissolution; Change in Business Status; Modification of
Organizational Documents
	 	 	18	 
	Section 6.11 Material Adverse Change
	 	 	18	 
	Section 6.12 Transfer or Encumbrances of Membership Interests
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VII Remedies on Default
	 	 	19	 
	Section 7.1 Remedies on Default
	 	 	19	 
	Section 7.2 No Release or Waiver; Remedies Cumulative and Concurrent
	 	 	19	 
	Section 7.3 Lender’s Rights to Pay and Reform
	 	 	20	 
	Section 7.4 Reimbursement; Interest
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VIII
Property Release
	 	 	20	 
	Section 8.1 Right to Release
	 	 	20	 
	Section 8.2 Terms of Release
	 	 	21	 
	Section 8.3 Liens of Deed of Trust Otherwise Unaffected
	 	 	21	 
	Section 8.4 Reduction in Borrowing Base Availability
	 	 	21	 
	Section 8.5
Property Substitution
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	21	 
	Section 9.1 Further Assurances; Authorization to File Documents
	 	 	21	 
	Section 9.2 No Warranty by Lender
	 	 	22	 
	Section 9.3 Standard of Conduct of Lender
	 	 	22	 
	Section 9.4 No Partnership
	 	 	22	 
	Section 9.5 Severability
	 	 	22	 
	Section 9.6 Notices
	 	 	23	 
	Section 9.7 Permitted Successors and Assigns; Disclosure of Information
	 	 	24	 

ii

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 9.8 Modification; Waiver
	 	 	24	 
	Section 9.9 Third Parties; Benefit
	 	 	25	 
	Section 9.10 Rules of Construction
	 	 	25	 
	Section 9.11 Counterparts
	 	 	25	 
	Section 9.12 Governing Law
	 	 	25	 
	Section 9.13 Time of Essence
	 	 	25	 
	Section 9.14 Electronic Transmission of Data
	 	 	25	 
	Section 9.15 Intentionally Omitted
	 	 	26	 
	Section 9.16 Forum
	 	 	26	 
	Section 9.17 WAIVER OF JURY TRIAL
	 	 	26	 
	Section 9.18 Entire Agreement
	 	 	27	 
	 
	 	 	 	 
	Schedule 1 Definitions
	 	 	 	 
	Schedule 2 Release Prices
	 	 	 	 
	Schedule 3 Rent Roll
	 	 	 	 

iii

 

Loan Agreement

This Loan Agreement (this “Agreement”) is made as of the 20th day of March, 2006, by and
between ASSET CAPITAL PARTNERS, L.P., a Delaware limited partnership and (the “Borrower”)
and CITIZENS BANK OF PENNSYLVANIA, a Pennsylvania banking corporation (together with its successors
and assigns, “Lender”).

Recitals

     A. Lender has agreed to make a loan to Borrower in the maximum principal amount of $19,000,000
(the “Loan”), subject to the terns and conditions contained herein.

     B. The Loan is evidenced by that certain Revolving Credit Note of even date herewith in the
original principal balance of $19,000,000 (as the same may be amended, modified, supplemented,
replaced, or restated from time to time, the “Note”). The terms and provisions of the Note are
hereby incorporated by reference into this Agreement.

     C. Payment of the Note, and the due performance by Borrower of all of its obligations under
the Note is guaranteed by Asset Capital Corporation, Inc., a Maryland corporation (“Guarantor”),
and by ACC Timonium LLC, a Delaware limited liability company (“Timonium”), ACC Columbia Medical
Campus LLC, a Delaware limited liability company (“Columbia”) and ACC Frederick Medical Center LLC,
a Delaware limited liability company (“Frederick”, and together with Timonium and Columbia, the
”IDOT Guarantors”). The obligations of IDOT Guarantors are secured by the lien of that certain
Indemnity Deed of Trust, Assignment, Security Agreement and Fixture Filing of even date (the “Deed
of Trust”). This Agreement, the Note, the Deed of Trust and any other document executed and
delivered in connection with the Loan, as the same may be amended or modified from time to time,
are sometimes individually referred to herein as a “Loan Document” and collectively as the “Loan
Documents.”

     D. The parties hereto desire to set forth the terms and conditions under which the Loan shall
be made and administered.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby covenant
and agree as follows:

Agreements

ARTICLE I

General Information.

Section
1.1   Schedules.

     The Schedules attached to this Agreement are incorporated herein and made a part hereof.

Section
1.2   Defined Terms.

1

 

Capitalized terms in this Agreement shall have the meanings ascribed to such terms in the Preamble
hereto and in Schedule 1.

ARTICLE II

Advances of the Loan.

Section
2.1   The Loan.

Borrower agrees to borrow the Loan from Lender, and Lender agrees to lend the Loan to Borrower,
subject to the terms and conditions herein set forth.

     (a) Initial Advance of Maximum Loan Amount. On the Closing Date, Lenders shall make an initial
advance of a portion of the Maximum Loan Amount in the amount of up to $276,119.75 (“Initial
Advance”). Interest shall accrue and be payable in arrears on the principal amount
outstanding.

     (b) Interest Payment; Debt Service Advance Amount and Use. Borrower shall either (i) remit to
Lender interest due on the unpaid principal balance of the Loan outstanding in monthly installments
on each Payment Date in accordance with Section 2 of the Note (“Debt Service Payment”) or
(ii) at Borrower’s option, Borrower may request Lender to make an advance from the Interest Reserve
(each, a “Debt Service Advance”) on any Payment Date in an amount equal to the Debt Service
Payment provided that the aggregate amount of Debt Service Advances shall at no time exceed amounts
available under the Interest Reserve. Each Debt Service Advance shall be added to the unpaid
principal balance of the Loan as of the day such advance is made; provided, (i) Lender shall have
no obligation to make any Debt Service Advance at any time during which a Default exists and (ii)
if insufficient funds remain in the Interest Reserve to pay accrued interest on any Payment Date,
Borrower shall make such payment(s) from its own funds. The making of any advance by Lender at the
time when a Default exists shall not be deemed a waiver or cure by Lender of such Default, nor
shall Lender’s rights and remedies by prejudiced in any manner thereby.

     (c) Working Capital Advances; Borrowing Base Availability and Revolving Borrowings. The
Borrower shall be entitled to request working capital advances (“Working Capital Advances”) from
Lender in an aggregate amount not to exceed the Maximum Working Capital Advance Amount
provided that at no time shall the aggregate principal amount outstanding under the Loan
(including Advances under the Interest Reserve) exceed the lesser of (X) the Maximum Loan Amount or
(Y) the aggregate of the Release Prices (as such amounts shall be determined based on eighty
percent (80%) of the aggregate “as is” appraised value of the Property and subject to adjustment
pursuant to the terms hereof) of the Property, or part thereof, pledged as collateral for the Loan
(the “Borrowing Base Availability”) in accordance with the terms and conditions of this
Loan Agreement; provided further that Borrower shall not be entitled to any Advance
hereunder (i) should there exist an Event of Default at the time such Advance is requested or (ii)
at any time after thirty (30) days preceding the Maturity Date. Notwithstanding anything to the
contrary contained herein, the Borrowing Base Availability shall be determined by Lender, in
Lender’s sole discretion, and shall be subject to adjustment pursuant to Section 8.4 hereof.
Subject to the restrictions on Advances set forth in this Section 2.1, following the completion of
the IPO of Guarantor, Borrower shall be entitled to borrow, repay and reborrow amounts under the
Loan.

2

 

     (d)
Advances. The Borrower shall give Lender written notice (or telephonic notice promptly
confirmed in writing) of each request for Advance hereunder prior to 11:00 a.m. on the requested
date of each Advance. Each request for Advance shall be irrevocable and shall specify: (i) the
aggregate principal amount of such Borrowing; (ii) the date of such Borrowing (which shall be a
Business Day) and (iii) the account of the Borrower to which the proceeds of the Advance should be
credited.

     (e)
Optional Prepayments. The Borrower shall have the right at any time and from time to time
to prepay the Loan, in whole or in part, by giving written notice (or telephonic notice promptly
confirmed in writing) to the Lender no later than 11:00 a.m. on the date of such prepayment. Each
such notice shall be irrevocable and shall specify the proposed date of such prepayment and the
principal amount to be prepaid. If such notice is given, the aggregate amount specified in such
notice shall be due and payable on the date designated in such notice, together with accrued and
unpaid interest to such date on the amount so prepaid.

     (f)
Maturity Date.

          (i)
Initial Maturity. Subject to Borrower’s right to extend the term of the Loan as set
forth below, if not sooner paid, the entire outstanding principal balance, together with all
accrued interest thereon, shall be payable on the Initial Maturity Date.

          (ii)
Extension Option. Borrower has the right to extend the maturity of the Loan until the
Extended Maturity Date upon Borrower’s satisfaction of each of the conditions set forth in this
Section 2.1(f).

          (iii)
Conditions Precedent to Extension. Each of the following conditions must be satisfied
in a manner acceptable to Lender (or waived in writing by Lender) as a condition precedent to
extension of the Initial Maturity Date:

                    (A) Borrower delivers written notice to Lender not more than ninety (90) days and
not less than thirty (30) days prior to the Initial Maturity Date advising that Borrower
is exercising its extension option, together with all materials requested by Lender to
confirm that the performance criteria identified in subsection (E) below have been
satisfied.

                    (B) No Event of Default exists as of the date Borrower exercises its extension
option and/or as of the Initial Maturity Date.

                    (C) Borrower executes and delivers to Lender a confirmation or amendment to this
Loan Agreement, as applicable, acceptable to Lender in all respects, which confirms that
the term of the Loan has been extended until the Extended Maturity Date, and such other
matters as Lender may require.

                    (D) Borrower reimburses Lender for all costs reasonably incurred by Lender in
processing the extension request, including, without limitation, reasonable legal fees
and expenses.

3

 

                    (E) The Two Year Anniversary Date Debt Service Coverage Ratio Test has been
satisfied, as determined by Lender in Lender’s sole discretion.

ARTICLE III

Representations and Warranties.

Borrower represents and warrants to Lender that:

Section
3.1   Organization, Power and Authority of Borrower; Loan Documents.

Borrower (a) is a limited partnership duly organized, existing and in good standing under the laws
of the state in which it is organized and is duly qualified to do business and in good standing in
the state in which the Land is located (if different from the state of its formation) and in any
other state where the nature of Borrower’s business or property requires it to be qualified to do
business, and (b) has the power, authority and legal right to own its property and carry on the
business now being conducted by it and to engage in the transactions contemplated by the Loan
Documents.

Section
3.2   Authorization; Enforceability.

The Loan Documents to which Borrower is a party have been duly executed and delivered by Borrower,
and the execution and delivery of, and the carrying out of the transactions contemplated by, such
Loan Documents, and the performance and observance of the terms and conditions thereof, have been
duly authorized by all necessary organizational action by and on behalf of Borrower. The Loan
Documents to which Borrower is a party constitute the valid and legally binding obligations of
Borrower and are fully enforceable against Borrower in accordance with their respective terms,
except to the extent that such enforceability may be limited by laws generally affecting the
enforcement of creditors’ rights.

Section
3.3   Organizational Documents.

The organizational documents of Borrower, Guarantor and each IDOT Guarantor heretofore delivered to
Lender are true, correct and complete copies thereof, and are in full force and effect, without
modification or amendment.

Section
3.4   Tenant Estoppels.

Borrower certifies that the tenant estoppels received from the tenants at the Property and
delivered to Lender by Borrower in conjunction with this Agreement or any transaction contemplated
hereby are true, correct and complete copies thereof. Borrower acknowledges that in making the
Loan to Borrower contemplated herein, Lender is acting on reliance of the foregoing.

Section
3.5   Other Documents; Laws.

The execution and performance of the Loan Documents to which Borrower is a party and the
consummation of the transactions contemplated thereby will not conflict with, result in any

4

 

breach of, or constitute a default under, the organizational documents of Borrower, or any
contract, agreement, document or other instrument to which Borrower is a party or by which Borrower
or any of its properties may be bound or affected, and such actions do not and will not violate or
contravene any Law to which Borrower is subject.

Section
3.6   Taxes.

Borrower has filed all federal, state, county and municipal Tax returns required to have been filed
by Borrower and has paid all Taxes which have become due pursuant to such returns or pursuant to
any Tax assessments received by Borrower.

Section
3.7   Legal Actions.

Borrower has received no notice of and has no knowledge that there are any Claims or investigations
by or before any court or Governmental Authority, pending, or to the best of Borrower’s knowledge
and belief, threatened against or affecting Borrower, Borrower’s business, any IDOT Guarantor or
the Property. Neither Borrower nor any IDOT Guarantor is in default with respect to any order,
writ, injunction, decree or demand of any court or any Governmental Authority affecting Borrower,
IDOT Guarantor or the Property.

Section
3.8   Nature of Loan.

Borrower is a business or commercial organization. The Loan is being obtained solely for business
or investment purposes, and will not be used for personal, family, household or agricultural
purposes.

Section
3.9   Trade Names.

Borrower conducts it business solely under the set forth in the Preamble of this Agreement and each
IDOT Guarantor conduct their business solely under the name set forth in Schedule 1 to this
Agreement and neither Borrower nor any IDOT Guarantor make use of any trade names in connection
therewith, unless such trade names have been previously disclosed to Lender in writing.

Section
3.10   Financial Statements.

The financial statements heretofore delivered by Borrower, Guarantor and each IDOT Guarantor to
Lender are true and correct in all material respects, have been prepared in accordance with sound
accounting principles consistently applied, and fairly present the respective financial conditions
of the subjects thereof as of the respective dates thereof.

Section
3.11   ERISA and Prohibited Transactions.

To the best of Borrower’s knowledge, as of the date hereof and throughout the term of the Loan: (a)
Borrower is not and will not be (i) an “employee benefit plan,” as defined in Section 3(3) of
ERISA, (ii) a “governmental plan” within the meaning of Section 3(32) of ERISA, or (iii) a “plan”
within the meaning of Section 4975(e) of the Code; (b) the assets of Borrower do not and will not
constitute “plan assets” within the meaning of the United States Department of Labor

5

 

Regulations set forth in Section 2510.3-101 of Title 29 of the Code of Federal Regulations; (c)
transactions by or with Borrower are not and will not be subject to state statutes applicable to
Borrower regulating investments of fiduciaries with respect to governmental plans; and (d) Borrower
will not engage in any transaction that would cause any Obligation or any action taken or to be
taken hereunder (or the exercise by Lender of any of its rights under the Deed of Trust or any of
the other Loan Documents) to be a non-exempt (under a statutory or administrative class exemption)
prohibited transaction under ERISA or Section 4975 of the Code. Borrower agrees to deliver to
Lender such certifications or other evidence of compliance with the provisions of this Section as
Lender may from time to time request.

Section
3.12  Compliance with Zoning and Other Requirements.

The use of the Property complies with applicable zoning ordinances, regulations and restrictive
covenants affecting the Land. All use and other requirements of any Governmental Authority having
jurisdiction over the Property have been satisfied, and no material violation of any Law exists
with respect to the Property.

Section
3.13  Other Liens.

Neither Borrower nor any IDOT Guarantor has made any contract or arrangement of any kind the
performance of which by the other party thereto would give rise to a lien on the Property, or any
part thereof, having priority over the Deed of Trust or the rights of Lender thereunder.

Section
3.14  No Material Adverse Change.

No material adverse change has occurred in the financial conditions reflected in the financial
statements of Borrower, Guarantor or any IDOT Guarantor since the respective dates of such
statements, and no material additional liabilities have been incurred by Borrower since the dates
of such statements other than the borrowings contemplated herein or as approved in writing by
Lender.

Section
3.15  Access; Roads.

The Property abuts and has direct access to a legally opened public right of way.

Section
3.16  Leases.

Attached hereto as Schedule 3 is a rent roll for the Property. As of the date hereof, to
the best of Borrower’s knowledge, information and belief, there is no Lease affecting the Project
other than as set forth in Schedule 3. To the best of Borrower’s knowledge, information and
belief, the rent roll is true, correct and complete in all material respects as of the date hereof.
Borrower has previously delivered to Lender true, correct and complete copies of all Leases.

Section
3.17  Federal Reserve Regulations.

No part of the proceeds of the Loan hereunder will be used to purchase or carry any “margin stock”
as defined in Regulation U of the Board of Governors of the Federal Reserve System of the United
States or for the purpose of reducing or retiring any indebtedness which was

6

 

originally incurred to purchase or carry any margin security or for any other purpose which might
constitute this transaction a “purpose credit” within the meaning of said Regulation U. No part of
the proceeds of the Loan hereunder will be used for any purpose that violates, or which is
inconsistent with, the provisions of Regulation X of the Board of Governors of the Federal Reserve
System or any other regulation of said Board of Governors.

Section
3.18  Investment Company Act.

Borrower is not an “investment company,” or an “affiliated person” of, or a “promoter” or
“principal underwriter” for, an “investment company,” as such terms are defined in the Investment
Company Act of 1940, as amended. The making of the Loan, the application of the proceeds and
repayment thereof by Borrower and the performance of the transactions contemplated by this
Agreement will not violate any provision of said Act, or any rule, regulation or order issued by
the Securities and Exchange Commission thereunder.

Section
3.19  Unregistered Securities.

Borrower has not: (a) issued any unregistered securities in violation of the registration
requirements of Section 5 of the Securities Act of 1933, as amended, or any other law; or (b)
violated any rule, regulation or requirement under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, in either case where the effect of such violation
constitute a Material Adverse Change.

Section
3.20  Accuracy of Information.

All factual information heretofore or herewith furnished by Borrower to Lender for purposes of or
in connection with this Agreement or any transaction contemplated hereby is true and accurate in
every material respect on the date as of which such information is dated or certified and no such
information contains any material misstatement of fact or omits to state a material fact or any
fact necessary to make the statements contained therein not misleading as of such date.

Section
3.21  Anti-Terrorism Regulations.

     (a) General. None of Borrower, Guarantor or any IDOT Guarantor is in violation
of any Anti-Terrorism Law or engages in or conspires to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any Anti-Terrorism Law.

     (b) Executive Order No. 13224. None of Borrower, Guarantor or any IDOT
Guarantor is any of the following (each a “Blocked Person”):

     (i) a Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

     (ii) a Person owned or controlled by, or acting for or on behalf of, any Person
that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

7

 

     (iii) a Person or entity with which Lender is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law;

     (iv) a Person or entity that commits, threatens or conspires to commit or
supports “terrorism” as defined in Executive Order No. 13224;

     (v) a Person or entity that is named as a “specially designated national” on
the most current list published by the U.S. Treasury Department Office of Foreign
Asset Control at its official website or any replacement website or other
replacement official publication of such list; or

     (vi) a Person or entity who is affiliated or associated with a Person or entity
listed above.

     (c) None of Borrower, Guarantor or any IDOT Guarantor (i) conducts any business or
engages in making or receiving any contribution of funds, goods or services to or for the
benefit of any Blocked Person, or (ii) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to Executive Order No.
13224.

     (d) None of Borrower, Guarantor or any IDOT Guarantor, nor any partner of Borrower nor
any member of any IDOT Guarantor, are a “Special Designated National” or “Blocked Person” as
those terms are defined in the office of Foreign Asset Control Regulations (31 C.F.R. § 500
et. seq.).

ARTICLE
IV

Affirmative
Covenants and Agreements.

Section
4.1  Use of Proceeds.

Borrower shall use the proceeds of the Loan for proper business purposes as contemplated by its
organizational documents and in compliance with Law.

Section
4.2  Inspections; Cooperation.

Subject to the rights of tenants of the Property under their Leases and subject to applicable law,
Borrower shall cause each IDOT Guarantor to permit representatives of Lender to enter upon the
Land, to inspect the Improvements, to examine all records and books of account maintained by or on
behalf of Borrower and/or IDOT Guarantors relating to the use and operation of all Improvements and
to discuss the affairs, finances and accounts pertaining to the Loan and the Improvements with
representatives of Borrower and/or IDOT Guarantors (provided, except in the event of an emergency,
Lender shall give IDOT Guarantors at least one (1) Business Day’s notice by telephone in each
instance before entering upon the Land and/or exercising any other rights granted in this Section).
Provided that no Event of Default has occurred or is continuing, Lender shall be limited to making
such inspections contemplated herein to no more than one (1) time in any twelve (12) month period
for the Improvements at each of the parcels as more fully described in Exhibits A-1 through Exhibit
A-3 of the Deed of Trust at a cost to Borrower not to exceed $1,500 in the aggregate in any such
twelve (12) month period.

8

 

Section
4.3  Payment and Performance of Contractual Obligations.

Borrower shall perform, and shall cause IDOT Guarantors to perform in a timely manner all of their
respective obligations under any and all contracts and agreements to which they are parties
(including, without limitation, those related to the operation of the Improvements), and to pay
when due all bills for services or labor performed and materials supplied in connection therewith.

Section
4.4  Insurance.

Borrower shall cause IDOT Guarantors to maintain the following insurance at its sole cost and
expense:

     (a) Insurance against Casualty to the Property under a policy or policies covering such risks as are
presently included in “special form” (also known as “all risk”) coverage, including such risks as
are ordinarily insured against by similar businesses, but in any event including fire, lightning,
windstorm, hail, explosion, riot, riot attending a strike, civil commotion, damage from aircraft,
smoke, vandalism and malicious mischief and shall not contain an exclusion for acts of terrorism.
Such insurance shall name Lender as mortgagee and loss payee. Unless otherwise agreed in writing
by Lender, such insurance shall be for the full insurable value of the Property, with a deductible
amount, if any, satisfactory to Lender. No policy of insurance shall be written such that the
proceeds thereof will produce less than the minimum coverage required by this Section by reason of
co-insurance provisions or otherwise. The term “full insurable value” means one hundred percent
(100%) of the actual replacement cost of the Property (excluding land, foundation and excavation
costs, site work costs and costs of underground flues, pipes, drains and other uninsurable items).

     (b) Comprehensive (also known as commercial) general liability insurance on an “occurrence” basis
against claims for “personal injury” liability and liability for death, bodily injury and damage to
property, products and completed operations, in limits satisfactory to Lender with respect to any
one occurrence and the aggregate of all occurrences during any given annual policy period. Such
insurance shall name Lender as an additional insured.

     (c) If at any time any portion of any structure on the Property is insurable against Casualty by flood
and is located in a Special Flood Hazard Area under the Flood Disaster Protection Act of 1973, as
amended, a flood insurance policy in form and amount acceptable to Lender but in no amount less
than the amount sufficient to meet the requirements of applicable Law as such requirements may from
time to time be in effect.

     (d) Loss of rental value insurance or business interruption insurance covering a period of at least
twelve (12) months in an amount acceptable to Lender.

     (e) Such other and further insurance as may be required from time to time by Lender in order to comply
with regular requirements and practices of Lender in similar transactions including, if required by
Lender, wind insurance and earthquake insurance, so long as any such insurance is generally
available at commercially reasonable premiums as determined by Lender from time to time.

9

 

Each policy of insurance (i) shall be issued by one or more insurance companies each of which must
have an A.M. Best Company financial and performance rating of A-IX or better and are qualified or
authorized by the Laws of the State to assume the risks covered by such policy, (ii) with respect
to the insurance described under the preceding Subsections (a), (c) and (d) and (e), shall
have attached thereto standard non-contributing, non-reporting mortgagee clauses in favor of and
entitling Lender without contribution to collect any and all proceeds payable under such insurance,
either as sole payee or as joint payee with the applicable IDOT Guarantor, (iii) shall provide that
such policy shall not be canceled or modified without at least thirty (30) days prior written
notice to Lender, and (iv) shall provide that any loss otherwise payable thereunder shall be
payable notwithstanding any act or negligence of Borrower or the IDOT Guarantors which might,
absent such agreement, result in a forfeiture of all or a part of such insurance payment. Borrower
shall or shall cause the IDOT Guarantors to promptly pay all premiums when due on such insurance
and, not less than thirty (30) days prior to the expiration dates of each such policy, Borrower
will deliver or cause IDOT Guarantors to Lender acceptable evidence of insurance, such as a renewal
policy or policies marked “premium paid” or other evidence satisfactory to Lender reflecting that
all required insurance is current and in force. Borrower shall or shall cause IDOT Guarantors to
immediately give notice to Lender of any cancellation of, or change in, any insurance policy.
Lender shall not, because of accepting, rejecting, approving or obtaining insurance, incur any
liability for (A) the existence, nonexistence, form or legal sufficiency thereof, (B) the solvency
of any insurer, or (C) the payment of losses. Borrower or IDOT Guarantors may satisfy any
insurance requirement hereunder by providing one or more “blanket” insurance policies, subject to
Lender’s approval in each instance as to limits, coverages, forms, deductibles, inception and
expiration dates, and cancellation provisions.

Section
4.5   Adjustment of Condemnation and Insurance Claims.

Borrower shall give prompt notice to Lender of any Casualty or any Condemnation or threatened
Condemnation. Borrower shall cause the applicable IDOT Guarantor, at its expense, to diligently
prosecute any such proceedings, and to consult with Lender, its attorneys and experts, and
cooperate with them in the carrying on or defense of any such proceedings. If an Event of Default
occurs hereunder, Lender is authorized, at its sole and absolute option, to commence, appear in and
prosecute, in its own or the applicable IDOT Guarantor’s name, any action or proceeding relating to
any Condemnation or Casualty, and to make proof of loss for and to settle or compromise any Claim
in connection therewith. In such case, Lender shall have the right to receive all Condemnation
Awards and Insurance Proceeds, and may deduct therefrom any payment all of its Expenses. Borrower
agrees to cause the applicable IDOT Guarantor to diligently assert its rights and remedies with
respect to each Claim and to promptly pursue the settlement and compromise of each Claim subject to
Lender’s approval, which approval shall not be unreasonably withheld or delayed. If, prior to the
receipt by Lender of any Condemnation Award or Insurance Proceeds, the Property shall have been
sold pursuant to the provisions of the Deed of Trust, Lender shall have the right to receive such
funds (a) to the extent of any deficiency found to be due upon such sale with interest thereon
(whether or not a deficiency judgment on the Deed of Trust shall have been sought or recovered or
denied), and (b) to the extent necessary to reimburse Lender for its Expenses. If any Condemnation
Awards or Insurance Proceeds are paid to Borrower or any IDOT Guarantor, Borrower or such IDOT
Guarantor shall receive the same in trust for Lender. Within ten (10) days after Borrower’s or
IDOT Guarantor’s receipt of any Condemnation Awards or Insurance Proceeds, Borrower shall

10

 

or shall cause the applicable IDOT Guarantor to deliver such awards or proceeds to Lender in the
form in which they were received, together with any endorsements or documents that may be necessary
to effectively negotiate or transfer the same to Lender. Borrower agrees to or to cause each IDOT
Guarantor to execute and deliver from time to time, upon the request of Lender, such further
instruments or documents as may be requested by Lender to confirm the grant and assignment to
Lender of any Condemnation Awards or Insurance Proceeds.

Section
4.6   Utilization of Net Proceeds.

Net Proceeds must be utilized either for payment of the Obligations or for the restoration of the
Property. Net Proceeds shall be utilized for the restoration of the Property provided that no
Event of Default shall have occurred and if in the reasonable judgment of Lender (i) there has been
no material adverse change in the financial viability of the construction or operation of the
Improvements and (ii) the Net Proceeds, together with other funds deposited with Lender for that
purpose, are sufficient to pay the cost of the restoration pursuant to a budget and plans and
specifications approved by Lender. Otherwise, Net Proceeds shall be utilized for payment of the
Obligations.

If Net Proceeds are to be utilized for the restoration of the Property, the Net Proceeds, together
with any other funds deposited with Lender for that purpose, must be deposited in an
interest-bearing account with Lender, which account will be assigned to Lender as additional
security for the Loan (the “Deposit Account”). In the event of a deficiency in the funds available
to complete restoration as herein contemplated Borrower shall deposit funds in an amount equal to
such deficiency in the Deposit Account. Lender shall have the exclusive right to manage and
control all funds in the Borrower’s Deposit Account, but Lender shall have no fiduciary duty with
respect to such funds. Advances of the deposited funds will be made from time to time for the
payment of deficient line item amounts, prior to the advance of proceeds of the Loan for such
amounts. Disbursements of funds from the Deposit Account will be made in a manner consistent with,
and subject to, the Lender’s then standard requirements for the closing and funding of construction
loans. Any account fees and charges may be deducted from the balance, if any, in the Borrower’s
Deposit Account. Borrower grants to Lender a security interest in the Borrower’s Deposit Account
and all such deposited funds hereafter deposited to such deposit account, and any proceeds thereof,
as security for the Obligations. Such security interest shall be governed by the Uniform
Commercial Code of the State, and Lender shall have available to it all of the rights and remedies
available to a secured party thereunder. The Borrower’s Deposit Account may be established and
held in such name or names as Lender shall deem appropriate, including in the name of Lender.

Section
4.7   Leases.

Borrower shall cause IDOT Guarantors to enforce the landlord’s rights and perform the landlord’s
obligations under each Lease in a commercially reasonable manner unless and until terminated by
Borrower in accordance with the terms thereof. All Leases executed by IDOT Guarantors after the
date hereof shall be (a) on commercially reasonable terms (including the term and rental rate)
based on comparable properties in the geographic region of the Property; (b) with third parties
unaffiliated with Borrower, Guarantor or any IDOT Guarantor; (c) specifically subordinate to the
lien of the Deed of Trust and (d) for uses that are in compliance with Law.

11

 

Section
4.8   Books and Records; Financial Statements; Tax Returns.

          Borrower shall and shall cause Guarantor and each IDOT Guarantor to keep and maintain full and
accurate books and records administered in accordance with sound accounting principles,
consistently applied, which shall include in detail the earnings and expenses of the Property and
the operation thereof. Borrower (a) shall keep and maintain its books and records, including
recorded data of any kind and regardless of the medium of recording, at the address of Borrower set
forth in Section 9.06 hereof and (b) shall cause Guarantor and each IDOT Guarantor to keep and
maintain its books and records, including recorded data of any kind and regardless of the medium of
recording, in each case, at 4733 Bethesda Avenue, Suite 800, Bethesda, Maryland 20814. Borrower
shall permit and shall cause Guarantor and each IDOT Guarantor to permit Lender, or any Person
authorized by Lender, to inspect and examine such books and records (regardless of where
maintained) and all supporting vouchers and data and to make copies and extracts therefrom at all
reasonable times and as often as may be requested by Lender.

     Borrower will furnish or cause to be furnished to Lender (i) annual audited financial
statements, including balance sheets and income statements, together with copies of filed federal
and state income tax returns for each of the Borrower, Guarantor, and IDOT Guarantors for each
taxable year, within thirty (30) days after filing but in any event not later than one hundred and
twenty (120) days after the close of each such taxable year or fiscal year, as applicable and (ii)
with reasonable promptness, such additional information, reports or statements in connection
therewith, as Lender may from time to time reasonably request. All financial statements submitted
pursuant to this paragraph shall be prepared in accordance with generally accepted accounting
principles, consistently applied, shall be in form and detail acceptable to Lender in all respects,
and shall be certified in writing as true and correct by the Borrower, Guarantor and each of the
IDOT Guarantors, as applicable. Notwithstanding the foregoing or anything to the contrary
contained herein, Borrower may provide to Lender such information as required hereunder on a
consolidated basis together with the information as required for each of the Guarantor and IDOT
Guarantors provided that Borrower shall provide to Lender and Lender shall be entitled to receive
such financial information as necessary for Lender to calculate covenants and/or ratios as required
pursuant to this Loan Agreement, including without limitation the Debt Service Coverage Ratio.

Section
4.9   Debt Service Coverage.

The minimum Debt Service Coverage Ratio (as hereinafter defined), as calculated by Lender, shall be
(a) 1.00 to 1 as tested within thirty (30) days following the One Year Anniversary Date (the “One
Year Anniversary Date Debt Service Coverage Ratio Test”) and (b) 1.15 to 1 as tested at least
thirty (30) days prior to the Two Year Anniversary Date but no more than sixty (60) days prior to
the Two Year Anniversary Date (the “Two Year Anniversary Date Debt Service Coverage Ratio Test”).

Section
4.10   Estoppel Certificates.

Within ten (10) Business Days after any request by Lender or a proposed assignee or purchaser of
the Loan or any interest therein, Borrower shall certify in writing to Lender, or to such proposed
assignee or purchaser, the then unpaid balance of the Loan and whether Borrower

12

 

claims any right of defense or setoff to the payment or performance of any of the Obligations, and
if Borrower claims any such right of defense or setoff, Borrower shall give a detailed written
description of such claimed right.

Section
4.11   Taxes.

Borrower shall pay and discharge all Taxes prior to the date on which penalties are attached
thereto.

Section
4.12   Notification by Borrower.

Borrower will promptly give notice to Lender of the occurrence of any Default or Event of Default
hereunder or under any of the other Loan Documents. Borrower will also promptly give (or cause to
be given) notice to Lender of any claim of a default by Borrower or any IDOT Guarantor or any claim
by Borrower or any IDOT Guarantor of a default by any other party, under any Lease, or other
contract or agreement pertaining to the ownership, operation or use of the Property.

Section
4.13   Indemnification by Borrower.

Borrower agrees to indemnify Lender and to hold Lender harmless from and against, and to defend
Lender by counsel approved by Lender against, any and all Claims directly or indirectly arising out
of or resulting from any transaction, act, omission, event or circumstance in any way connected
with the Property or the Loan, including any Claim arising out of or resulting from (a) any failure
by Borrower or any IDOT Guarantor to comply with the requirements of any Laws or to comply with any
agreement that applies or pertains to the Property, including any agreement with a broker or
“finder” in connection with the Loan or other financing of the Property; (b) any failure by
Borrower or any IDOT Guarantor to observe and perform any of the obligations imposed upon the
landlord under the Leases; (c) any other default or Event of Default hereunder or under any of the
other Loan Documents; or (d) any assertion or allegation that Lender is liable for any act or
omission of Borrower, any IDOT Guarantor or any other Person in connection with the ownership,
development, financing, leasing, operation or sale of the Property; provided,
however, that Borrower shall not be obligated to indemnify Lender with respect to any Claim
arising from the gross negligence or willful misconduct of Lender. The agreements and
indemnifications contained in this Section shall apply to Claims arising both before and after the
repayment of the Loan and shall survive the repayment of the Loan, any foreclosure or deed,
assignment or conveyance in lieu thereof and any other action by Lender to enforce the rights and
remedies of Lender hereunder or under the other Loan Documents.

Section
4.14   Fees and Expenses.

Borrower shall pay all fees, charges, costs and expenses required to satisfy the conditions of the
Loan Documents. Without limitation of the foregoing, Borrower will pay, when due, and if paid by
Lender will reimburse Lender on demand for, all fees and expenses of the title insurer,
environmental engineers, appraisers, surveyors and Lender’s counsel in connection with the closing,
administration, modification or any “workout” of the Loan, or the enforcement of Lender’s rights
and remedies under any of the Loan Documents.

13

 

Section
4.15  Negative Covenants.

     So long as the Loan is outstanding, without Lender’s prior written consent:

	(a)	 	Merger. No IDOT Guarantor may merge or consolidate into any Person or permit any other
Person to merge into it, or acquire (in a transaction analogous in purpose or effect to a
consolidation or merger) all or substantially all of the assets of any other Person.
	(b)	 	Distributions. Upon the occurrence of an Event of Default, none of Borrower, Guarantor or
IDOT Guarantor may directly or indirectly make any distribution of money or property to any of its
partners/members/ shareholders or make any loan or advance to Borrower, Guarantor or an IDOT
Guarantor, or pay any fees or other compensation to any of such Persons.
	(c)	 	Indebtedness. No IDOT Guarantor may create, incur, assume or suffer to exist any
indebtedness except for trade payables incurred in the ordinary course of business.
	(d)	 	Guaranties. No IDOT Guarantor may assume, guarantee or endorse or otherwise become directly
or contingently liable in connection with any other liability of any other Person; provided,
however, that the foregoing shall not prohibit the endorsement of negotiable instruments for
deposit or collection and similar transactions in the ordinary course of business.
	(e)	 	Investments. No IDOT Guarantor may acquire all or any portion of the stock, securities or
assets of any Person.
	(f)	 	Encumbrances. No IDOT Guarantor may create, purport to create, or suffer to exist any lien,
encumbrance, mortgage or security interest on any of such IDOT Guarantor’s property, except
presently existing liens in favor of Lender.

Section 4.16  Appraisals.

The Lender shall have the right (at Lender’s expense, unless the Loan is in default or the
appraisal is in connection with an extension or other modification of the Loan) to require an
updated appraisal of the Property periodically during the term of the Loan and upon the occurrence
of a default, which appraisal(s) shall be prepared by an appraiser or appraisers designated by the
Lender and shall be in all respects acceptable to the Lender in its sole, but reasonable,
discretion. The Borrower shall reimburse the Lender for all costs and expenses incurred by the
Lender in connection with the preparation and review of the initial appraisal and, if the loan is
in default or the appraisal is in connection with an extension or other modification of the Loan,
updated appraisals.

Section
4.17  Publicity.

Subject to Borrower’s reasonable consent, Lender may, at Lender’s expense, prepare and furnish to
the news media for publication from time to time news releases with respect to Lender’s involvement
with the financing contemplated hereunder.

Deed of Agreement and Declaration of Covenants, Easements, Charges and Liens.

14

 

     Within thirty (30) days following the Closing Date, Borrower shall deliver to Lender an
estoppel certificate in form and substance acceptable to Lender in Lender’s sole discretion from
The Columbia Park and Recreation Association, Inc. (the “Grantor”) evidencing that the applicable
IDOT Guarantor and Grantor is in compliance with the obligations and requirements set forth in the
Deed, Agreement and Declaration of Covenants, Easements, Charges and Liens dated as of December 13,
1966 as recorded in the Land Records of Howard County at Liber WHH 463, folio 0158.

ARTICLE V

Conditions to Closing

          Lender shall not be required to make any Advance hereunder until the requirements, conditions
and other requirements set forth below have been completed and fulfilled to the reasonable
satisfaction of Lender, at Borrower’s sole cost and expense.

Section
5.1  Pre-Closing Requirements. At or prior to the closing of the Loan, Lender shall have received each
of the following, in form and substance acceptable to Lender:

	      (a)	 	A commitment for the Title Policy issued by a title insurance company approved by Lender, complying
with Lender’s standard requirements therefor.

	
	
	
	

 
	      (b)	 	A copy of an ALTA/ACSM Survey of each Property prepared for IDOT Guarantors, dated on or about the
date of acquisition of the Property by IDOT Guarantors.
 
	
	
	
	

 
	      (c)	 	Certificates and/or policies of insurance indicating that all insurance required hereunder is in
place.
	
	
	
	

 
	      (d)	 	Evidence that the Property is zoned so as to permit the use and occupancy thereof in its current
state.
	
	
	
	

 
	      (e)	 	A copy of Borrower’s, Guarantor’s and each IDOT Guarantor’s organizational documents, certificates
of good standing certified by the secretaries State of Delaware and/or Maryland, as applicable; and
resolutions and consents of any parties necessary to authorize the transaction described herein.
	
	
	
	

 
	      (f)	 	Other agreements, documents and exhibits, without limitation, which may be required, in Lender’s
judgment, to assure compliance with the requirements of this Agreement.
	
	
	
	

 
	Section
5.2  Security. As security for the Note and all of the Borrower’s obligations thereunder and hereunder,
the Borrower shall execute and deliver to Lender or cause to be executed and delivered to Lender,
as the case may be, the following documents at Borrower’s cost and expense, which documents shall
be in form and substance satisfactory to Lender.
	
	
	
	

 
	      (a)	 	The Deed of Trust executed and delivered by the IDOT Guarantors for the benefit of the Lender.
	
	
	
	

15

 

     (b)
IDOT Guarantors shall have executed and delivered that certain Assignment of Rents and Leases for
the benefit of the Lender.

     (c)
Uniform Commercial Code financing statements perfecting Lender’s security interests granted
pursuant to the Deed of Trust (as the same may be amended, modified, supplemented, replaced, or
restated from time to time, the “Financing Statement”).

     (d)
The Corporate Guaranty shall be executed and delivered by Guarantor.

     (e)
The IDOT Guaranty shall be executed and delivered by IDOT Guarantors.

     (f)
An Environmental Indemnification Agreement shall be executed and delivered by Borrower, Guarantor
and IDOT Guarantors in favor of Lender.

     (g)
Borrower, Guarantor and/or IDOT Guarantors shall deliver such additional documents and instruments
as Lender shall require in order to perfect the Lender’s interest in any of the foregoing property.
All Loan Documents shall be in form and substance satisfactory to Lender, and all necessary filing
and recording fees with respect thereto shall be paid by the Borrower.

Section
5.3  Opinion of Counsel. Lender shall have received from outside counsel for Borrower, Guarantor and
IDOT Guarantors current written opinions, in scope, form and substance acceptable to Lender. The
opinions shall be addressed to Lender.

Section
5.4  Appraisal. Prior to the Closing Date, Lender shall have received MAI appraisals indicating the
value of the Property. The appraisals shall be addressed to Lender, prepared by an appraiser
acceptable to Lender in substantial conformance with the regulations promulgated by the appropriate
federal regulatory agency pursuant to Section 1110 of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989 (12 U.S.C. § 3339), as amended, and the regulations thereunder, and
shall have been reviewed and approved by Lender and/or its consultant.

Section
5.5  Additional Security. As additional security for the Note and all of the Borrower’s obligations
thereunder and hereunder, Borrower hereby irrevocably assigns to Lender and grants to Lender a
security interest in all of its right, title and interest in and to all Loan funds held by Lender,
all funds deposited by the Borrower with Lender under this Agreement or otherwise, and all
reserves, deferred payments, deposits, refunds, cost savings and payments of any kind relating to
the Property. In addition, Lender shall have all other rights and remedies with respect to any of
the foregoing which are provided under applicable law or in equity.

ARTICLE VI

Events of Default.

The occurrence or happening, from time to time, of any one or more of the following shall
constitute an Event of Default under this Agreement:

Section
6.1  Payment Default.

16

 

            Borrower fails to pay any Obligation under this Agreement within ten (10) days of the date
when due or within ten (10) days following prior written notice as such notice may be required
pursuant to this Section 6.1, whether on the scheduled due date or upon acceleration, maturity or
otherwise provided that so long as there is availability under the Interest Reserve and there
remains Borrower Base Availability to make any such advance from the Interest Reserve, Lender shall
first provide Borrower with prior written notice of failure to make any debt service payment due
hereunder on a Payment Date.

Section
6.2   Default Under Other Loan Documents.

An Event of Default (as defined therein) occurs under the Note or the Deed of Trust, or a Default
shall occur under any of the other Loan Documents and shall remain uncured after the expiration of
any grace or cure period provided therefor.

Section
6.3   Accuracy of Information; Representations and Warranties.

Any information contained in any financial statement, schedule, report or any other document
prepared by Borrower, Guarantor or any IDOT Guarantor to Lender in connection with the Loan proves
at any time not to have been be in all respects true and accurate in all material respects, or
Borrower, Guarantor or any IDOT Guarantor shall have failed to state any material fact or any fact
necessary to make such information not materially misleading, or any representation or warranty
contained in this Agreement or in any other Loan Document or other document, certificate or opinion
delivered to Lender in connection with the Loan, proves at any time to be incorrect or misleading
in any material respect either on the date when made or on the date when reaffirmed pursuant to the
terms of this Agreement.

Section
6.4   Deposits

Any IDOT Guarantor fails or Borrow fails to cause such IDOT Guarantor to deliver to Lender any
Condemnation Awards or Insurance Proceeds within ten (10) Business Days after its receipt thereof.

Section
6.5   Insurance Obligations.

Borrower fails to promptly perform or comply with any of the covenants contained in the Loan
Documents with respect to maintaining insurance, including the covenants contained in 0.

Section
6.6   Other Obligations.

Borrower fails to promptly perform or comply with any of the Obligations set forth in this
Agreement (other than those expressly described in other Sections of this 0), and such
failure continues uncured for a period of thirty (30) days after notice from Lender to Borrower,
unless (a) such failure, by its nature, is not reasonably susceptible to cure within such period,
and (b) within such period, Borrower commences to cure such failure and thereafter diligently
prosecutes the cure thereof, and (c) Borrower causes such failure to be cured no later than sixty
(60) days after the date of such notice from Lender.

Section
6.7   Mechanic’s Lien.

17

 

A lien for the performance of work or the supply of materials is filed against the Property,
unless, within thirty (30) days after the date of filing or service, such lien is bonded and
released of record, waived, covered by affirmative title insurance coverage acceptable to Lender or
is otherwise satisfied and released to the satisfaction of Lender.

Section
6.8   Bankruptcy.

Any of Borrower, Guarantor, an IDOT Guarantor or the general partner of Borrower shall commit an
act of bankruptcy; or shall apply for, consent to or permit the appointment of a receiver,
custodian, trustee or liquidator for it or any of its property or assets; or shall generally fail
to, or admit in writing its inability to, pay its debts as they mature; or shall make a general
assignment for the benefit of creditors or shall be adjudicated bankrupt or insolvent; or shall
take other similar action for the benefit or protection of its creditors; or shall give notice to
any governmental body of insolvency of pending insolvency or suspension of operations; or shall
file a voluntary petition in bankruptcy or a petition or an answer seeking reorganization or an
arrangement with creditors, or to take advantage of any bankruptcy, reorganization, insolvency,
readjustment of debt, rearrangement, dissolution, liquidation or other similar debtor relief law or
statute; or shall file an answer admitting the material allegations of a petition filed against it
in any proceeding under any such law or statute; or shall be dissolved, liquidated, terminated or
merged; or shall effect a plan or other arrangement with creditors; or a trustee, receiver,
liquidator or custodian shall be appointed for it or for any of its property or assets and shall
not be discharged within sixty (60) days after the date of his appointment; or a petition in
involuntary bankruptcy or similar proceedings is filed against it and is not dismissed within sixty
(60) days after the date of its filing

Section
6.9   Judgment.

A final nonappealable judgment for the payment of money involving more than $500,000, and such
judgment is not fully insured and/or the proceeds of such insurance are not available to cover such
judgment, is entered against Borrower, Guarantor or any IDOT Guarantor, and Borrower, Guarantor or
such IDOT Guarantor fails to discharge the same, or causes it to be discharged or bonded off to
Lender’s satisfaction, within thirty (30) days from the date of the entry of such judgment.

Section
6.10   Change in Business Status; Modification of
Organizational Documents.

Unless the written consent of Lender is previously obtained, not to be unreasonably withheld, (i)
all or substantially all of the business assets of Borrower, Guarantor or any IDOT Guarantor are
sold, or (ii) Borrower, Guarantor or any IDOT Guarantor is dissolved (by virtue of a transfer that
is not a Permitted Transfer or does not otherwise constitute a transfer permitted pursuant to the
terms of this Agreement) or otherwise ceases to do business.

Section
6.11   Material Adverse Change.

In the reasonable opinion of Lender a Material Adverse Change occurs.

Section
6.12   Transfer or Encumbrances of Membership Interests.

18

 

Except for Permitted Transfers, if any owner of an interest in the Borrower or any IDOT Guarantor
(i) sells, assigns, mortgages, pledges, hypothecates, transfers or otherwise encumbers or permits
to be encumbered any or all of its interest in the Borrower or such IDOT Guarantor or withdraws
voluntarily or involuntarily (by operation of law or otherwise) from the Borrower or such IDOT
Guarantor or (ii) admits any new members or partners, as applicable.

Section 6.13   Accuracy of Fiscal Year End 2005 Financial Information.

The audited fiscal year end 2005 financial statements of the Guarantor are materially different, as
such determination shall be made by Lender in Lender’s sole discretion, from the draft financial
statements of Guarantor delivered to Lender in conjunction with the underwriting of the Loan.

ARTICLE VII

Remedies on Default.

Section
7.1   Remedies on Default.

Upon the occurrence of any Event of Default, Lender shall have the right, in addition to any other
rights or remedies available to Lender under the Deed of Trust or any of the other Loan Documents
or under applicable Law, to exercise any one or more of the following rights and remedies:

	 	 
	(a)	Lender may accelerate all of Borrower’s Obligations under the Loan Documents whereupon such
Obligations shall become immediately due and payable, without notice of default, acceleration or
intention to accelerate, presentment or demand for payment, protest or notice of nonpayment or
dishonor, or notices or demands of any kind or character (all of which are hereby waived by
Borrower).

	 	 
	(b)	Lender may apply to any court of competent jurisdiction for, and obtain appointment of, a receiver
for the Property.

	 	 
	(c)	Lender may set off the amounts due Lender under the Loan Documents against any and all accounts,
credits, money, securities or other property of Borrower now or hereafter on deposit with, held by
or in the possession of Lender to the credit or for the account of Borrower, without notice to or
the consent of Borrower.

Section
7.2   No Release or Waiver; Remedies Cumulative and Concurrent.

Borrower shall not be relieved of any Obligation by reason of the failure of Lender to comply with
any request of Borrower or of any other Person to take action to foreclose on the Property under
the Deed of Trust or otherwise to enforce any provision of the Loan Documents, or by reason of the
release, regardless of consideration, of all or any part of the Property. No delay or omission of
Lender to exercise any right, power or remedy accruing upon the happening of an Event of Default
shall impair any such right, power or remedy or shall be construed to be a waiver of any such Event
of Default or any acquiescence therein. No delay or omission on the part of Lender to exercise any
option for acceleration of the maturity of the Obligations, or for

19

 

foreclosure of the Deed of Trust following any Event of Default as aforesaid, or any other option
granted to Lender hereunder in any one or more instances, or the acceptance by Lender of any
partial payment on account of the Obligations shall constitute a waiver of any such Event of
Default and each such option shall remain continuously in full force and effect. No remedy herein
conferred upon or reserved to Lender is intended to be exclusive of any other remedies provided for
in the Loan Documents, and each and every such remedy shall be cumulative, and shall be in addition
to every other remedy given hereunder, or under the Loan Documents, or now or hereafter existing at
Law or in equity or by statute. Every right, power and remedy given by the Loan Documents to
Lender shall be concurrent and may be pursued separately, successively or together against
Borrower, Guarantor, any IDOT Guarantor or the Property or any part thereof, and every right, power
and remedy given by the Loan Documents may be exercised from time to time as often as may be deemed
expedient by Lender.

Section
7.3   Lender’s Rights to Pay and Reform.

If, after any required notice, Borrower fails to promptly pay or perform any of the Obligations
within any applicable grace or cure periods, Lender, without notice to or demand upon Borrower, and
without waiving or releasing any Obligation or default, may (but shall be under no obligation to)
at any time thereafter make such payment or perform such act for the account and at the expense of
Borrower.

Section
7.4   Reimbursement; Interest.

If Lender shall incur any expenses or pay any claims by reason of the Loan or the rights and
remedies provided under the Loan Documents (regardless of whether or not any of the Loan Documents
expressly provide for an indemnification by Borrower against such claims), Lender’s payment of such
expenses and claims shall constitute advances to Borrower which shall be paid by Borrower to Lender
on demand, together with interest thereon from the date incurred until paid in full at the rate of
interest then applicable to the Loan under the terms of the Note. Each advance shall be secured by
the Deed of Trust and the other Loan Documents as fully as if made to Borrower, regardless of the
disposition thereof by the party or parties to whom such advance is made. Notwithstanding the
foregoing, however, in any action or proceeding to foreclose the Deed of Trust or to recover or
collect the Obligations, the provisions of Law governing the recovery of costs, disbursements and
allowances shall prevail unaffected by this Section.

ARTICLE VIII

Property Release

Section
8.1   Right to Release.

Borrower shall have the right, from time to time, to obtain a partial release (“Partial Release”)
of one or more parcels comprising the Property from the lien of the Deed of Trust and related
Financing Statements in connection with the sale thereof in accordance with the provisions of this
Article VIII (the portion of Property so released hereinafter referred to as the “Released
Portion”).

20

 

Section
8.2  Terms of Release.

As used herein, “Release Price” shall have the meaning set forth on Schedule 2 attached
hereto and made a part hereof. Lender shall allow for one or more Partial Releases upon
satisfaction of the following conditions: (i) Lender shall have received payment of an amount
equal to the Release Price by wire transfer or other immediately available funds, which shall be
applied in partial prepayment of the principal balance of the Note, (ii) after giving effect to
such Partial Release, the outstanding principal balance under the Loan shall be no greater than
eighty percent (80%) of the aggregate Release Prices of the remaining Property; (iii) Borrower
shall have paid all costs in connection with the Partial Release; (iv) at the time of such Partial
Release, no Default shall have occurred and be continuing hereunder, (v) Borrower shall have
delivered to Lender the documents necessary to release the Released Portion from the lien created
by the Deed of Trust and Financing Statements, each in appropriate form required by the State and
otherwise reasonably satisfactory to Lender; (vi) Borrower shall have paid all amounts then due and
unpaid under the Loan Documents through (and including) amounts due on the date of Partial Release,
and (vii) Borrower shall have paid Lender’s reasonable out-of-pocket expenses (including reasonable
attorneys’ fees) incurred in connection with the review and documentation of such Partial Release.

Section
8.3  Liens of Deed of Trust Otherwise Unaffected.

No Partial Release shall, in any way, impair or affect the lien or priority of the Deed of Trust
with respect to any portion of the Property other than the Released Portion, or improve the
position of any subordinate lienholder with respect thereto. The Deed of Trust shall continue as a
lien and security interest on the portion of the Property other than the Released Portion.

Section
8.4  Reduction in Borrowing Base Availability.

Upon the Partial Release of Property, the Release Price of such Released Portion shall no longer be
included in the calculation of Borrowing Base Availability as set forth under Section 2.1 hereof
and Borrowing Base Availability shall be calculated based on the Release Price of the remaining
Property.

Section
8.5  Property Substitution.

Borrower may request and Lender may consider a substitution of real property collateral for the
Released Portion of the Property. Such substitution shall be in Lender’s sole discretion and
subject to the Lender’s then applicable underwriting standards and the Lender’s evaluation of the
economic performance of the proposed substitution property.

ARTICLE IX

Miscellaneous.

Section
9.1  Further Assurances; Authorization to File Documents.

21

 

     At any time, and from time to time, upon request by Lender, Borrower shall or shall cause IDOT
Guarantors to, at Borrower’s expense, (a) correct any defect, error or omission which may be
discovered in the form or content of any of the Loan Documents, and (b) make, execute, deliver and
record, or cause to be made, executed, delivered and recorded, any and all further instruments,
certificates and other documents as may, in the opinion of Lender, be necessary or desirable in
order to complete, perfect or continue and preserve the lien of the Deed of Trust. Upon any
failure by Borrower to do so, Lender may make, execute and record any and all such instruments,
certificates and other documents for and in the name of Borrower, all at the sole expense of
Borrower, and Borrower hereby appoints Lender the agent and attorney-in-fact of Borrower to do so,
this appointment being coupled with an interest and being irrevocable. Without limitation of the
foregoing, Borrower irrevocably authorizes Lender at any time and from time to time to file any
initial financing statements, amendments thereto and continuation statements deemed necessary or
desirable by Lender to establish or maintain the validity, perfection and priority of the security
interests granted in the Deed of Trust, and Borrower ratifies any such filings made by Lender
prior to the date hereof.

Section
9.2   No Warranty by Lender.

     By accepting or approving anything required to be observed, performed or fulfilled by Borrower
or to be given to Lender pursuant to this Agreement, including any certificate, survey, receipt,
appraisal or insurance policy, Lender shall not be deemed to have warranted or represented the
sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or
condition thereof and any such acceptance or approval thereof shall not be or constitute any
warranty or representation with respect thereto by Lender.

Section
9.3   Standard of Conduct of Lender.

     Except as otherwise set forth in this Agreement, nothing contained in this Agreement or any
other Loan Document shall limit the right of Lender to exercise its business judgment or to act, in
the context of the granting or withholding of any advance or consent under this Agreement or any
other Loan Document, in a subjective manner, whether or not objectively reasonable under the
circumstances, so long as Lender’s exercise of its business judgment or action is made or
undertaken in good faith. Borrower and Lender intend by the foregoing to set forth and affirm
their entire understanding with respect to the standard pursuant to which Lender’s duties and
obligations are to be judged and the parameters within which Lender’s discretion may be exercised
hereunder and under the other Loan Documents. As used herein, “good faith” means honesty in fact
in the conduct and transaction concerned.

Section
9.4   No Partnership

Nothing contained in this Agreement shall be construed in a manner to create any relationship
between Borrower and Lender other than the relationship of borrower and lender and Borrower and
Lender shall not be considered partners or co-venturers for any purpose on account of this
Agreement.

Section
9.5   Severability.

In the event any one or more of the provisions of this Agreement or any of the other Loan Documents
shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part

22

 

or in any other respect, or in the event any one or more of the provisions of any of the Loan
Documents operates or would prospectively operate to invalidate this Agreement or any of the other
Loan Documents, then and in either of those events, at the option of Lender, such provision or
provisions only shall be deemed null and void and shall not affect the validity of the remaining
Obligations, and the remaining provisions of the Loan Documents shall remain operative and in full
force and effect and shall in no way be affected, prejudiced or disturbed thereby.

Section
9.6   Notices.

All notices required or which any party desires to give hereunder or under any other Loan Document
shall be in writing and, unless otherwise specifically provided in such other Loan Document, shall
be deemed sufficiently given or furnished if delivered by personal delivery, by nationally
recognized overnight courier service or by certified United States mail, postage prepaid, addressed
to the party to whom directed at the applicable address set forth below (unless changed by similar
notice in writing given by the particular party whose address is to be changed). Any notice shall
be deemed to have been given either at the time of personal delivery or, in the case of courier or
mail, as of the date of first attempted delivery at the address and in the manner provided herein;
provided that service of a notice required by any applicable statute shall be considered complete
when the requirements of that statute are met. Notwithstanding the foregoing, no notice of change
of address shall be effective except upon actual receipt. This Section shall not be construed in
any way to affect or impair any waiver of notice or demand provided in this Agreement or in any
other Loan Document or to require giving of notice or demand to or upon any Person in any situation
or for any reason.

The address and fax number of Borrower are:

Asset Capital Corporation, Inc.

4733 Bethesda Avenue

Suite 800

Bethesda, Maryland 20814

Attention: Peter C. Minshall

Fax Number: 301-656-1960

With a copy to:

Kennerly, Lamishaw & Rossi LLP

707 Wilshire Boulevard, Suite 1400

Los Angeles, California 90017

Attn: Howard Parelskin, Esq.

Fax: 213-596-5791

The address and fax number of Lender are:

Citizens Bank of Pennsylvania

7 East Market Street

Georgetown, Delaware 19947

Attn: Gayle Rogers

23

 

Fax Number: 302-855-1868

with a copy to:

Buchanan Ingersoll, PC

1770 K Street, NW, Suite 300

Washington, D.C. 20006

Attn: Ronald D. Abramson, Esq.

Fax Number: 202-452-7989

Section
9.7  Permitted Successors and Assigns; Disclosure of Information.

     (a) Each and every one of the covenants, terms, provisions and conditions of this Agreement and the
Loan Documents shall apply to, bind and inure to the benefit of Borrower, its successors and those
assigns of Borrower consented to in writing by Lender, and shall apply to, bind and inure to the
benefit of Lender and the endorsees, transferees, successors and assigns of Lender, and all Persons
claiming under or through any of them.

     (b) Borrower agrees not to transfer, assign, pledge or hypothecate any right or interest in any payment
or advance due pursuant to this Agreement, or any of the other benefits of this Agreement, without
the prior written consent of Lender, which consent may be withheld by Lender in its sole and
absolute discretion. Any such transfer, assignment, pledge or hypothecation made or attempted by
Borrower without the prior written consent of Lender shall be void and of no effect. No consent by
Lender to an assignment shall be deemed to be a waiver of the requirement of prior written consent
by Lender with respect to each and every further assignment and as a condition precedent to the
effectiveness of such assignment.

     (c) Lender may sell or offer to sell the Loan or interests therein to one or more assignees or
participants provided that either Lender or one such assignee or participant shall be designated as
“agent” for purposes of notice hereunder and submission of information and payments by Borrower
required hereunder. Borrower shall execute, acknowledge and deliver any and all instruments
reasonably requested by Lender in connection therewith, and to the extent, if any, specified in any
such assignment or participation, such assignee(s) or participant(s) shall have the same rights and
benefits with respect to the Loan Documents as such Person(s) would have if such Person(s) were
Lender hereunder. Lender may disseminate any information it now has or hereafter obtains
pertaining to the Loan, including any security for the Loan, any credit or other information on the
Property (including environmental reports and assessments), Borrower, any of Borrower’s principals,
Guarantor or any IDOT Guarantor, to any actual or prospective assignee or participant, to any
regulatory body having jurisdiction over Lender or to any other party as necessary or appropriate
in Lender’s reasonable judgment.

Section
9.8  Modification; Waiver.

None of the terms or provisions of this Agreement may be changed, waived, modified, discharged or
terminated except by instrument in writing executed by the party or parties against whom
enforcement of the change, waiver, modification, discharge or termination is asserted. None of the
terms or provisions of this Agreement shall be deemed to have been abrogated or waived by reason of
any failure or failures to enforce the same.

24

 

Section
9.9   Third Parties; Benefit.

All conditions to the obligation of Lender to make advances hereunder are imposed solely and
exclusively for the benefit of Lender and its assigns and no other Persons shall have standing to
require satisfaction of such conditions in accordance with their terms or be entitled to assume
that Lender will refuse to make advances in the absence of strict compliance with any or all
thereof and no other Person shall, under any circumstances, be deemed to be the beneficiary of such
conditions, any or all of which may be freely waived in whole or in part by Lender at any time in
the sole and absolute exercise of its discretion. The terms and provisions of this Agreement are
for the benefit of the parties hereto and, except as herein specifically provided, no other Person
shall have any right or cause of action on account thereof.

Section
9.10   Rules of Construction.

The words “hereof,” “herein,” “hereunder,” “hereto,” and other words of similar import refer to
this Agreement in its entirety. The terms “agree” and “agreements” mean and include “covenant” and
“covenants.” The words “include” and “including” shall be interpreted as if followed by the words
“without limitation.” The captions and headings contained in this Agreement are included herein
for convenience of reference only and shall not be considered a part hereof and are not in any way
intended to define, limit or enlarge the terms hereof. All references (a) made in the neuter,
masculine or feminine gender shall be deemed to have been made in all such genders, (b) made in the
singular or plural number shall be deemed to have been made, respectively, in the plural or
singular number as well, (c) to the Loan Documents are to the same as extended, amended, restated,
supplemented or otherwise modified from time to time unless expressly indicated otherwise, (d) to
the Land, the Improvements or the Property shall mean all or any portion of each of the foregoing,
respectively, and (e) to Articles, Sections and Schedules are to the respective Articles, Sections
and Schedules contained in this Agreement unless expressly indicated otherwise.

Section
9.11   Counterparts.

This Agreement may be executed in any number of counterparts, each of which shall be considered an
original for all purposes; provided, however, that all such counterparts shall together constitute
one and the same instrument.

Section
9.12   Governing Law.

This Agreement shall be governed by and construed, interpreted and enforced in accordance with the
laws of the State.

Section
9.13   Time of Essence.

Time shall be of the essence for each and every provision of this Agreement of which time is an
element.

Section
9.14   Electronic Transmission of Data.

25

 

Lender and Borrower agree that certain data related to the Loan (including confidential
information, documents, applications and reports) may be transmitted electronically, including
transmission over the Internet. This data may be transmitted to, received from or circulated among
agents and representatives of Borrower and/or Lender and their affiliates and other Persons
involved with the subject matter of this Agreement. Borrower acknowledges and agrees that (a)
there are risks associated with the use of electronic transmission and that Lender does not control
the method of transmittal or service providers, (b) Lender has no obligation or responsibility
whatsoever and assumes no duty or obligation for the security, receipt or third party interception
of any such transmission, and (c) Borrower will release, hold harmless and indemnify Lender from
any claim, damage or loss, including that arising in whole or part from Lender’s strict liability
or sole, comparative or contributory negligence, which is related to the electronic transmission of
data.

Section
9.15   Intentionally Omitted.

Section
9.16   Forum.

Borrower hereby irrevocably submits generally and unconditionally for itself and in respect of its
property to the jurisdiction of any state court or any United States federal court sitting in the
State specified in the governing law section of this Agreement and to the jurisdiction of any state
court or any United States federal court sitting in the state in which any of the Property is
located, over any Dispute. Borrower hereby irrevocably waives, to the fullest extent permitted by
Law, any objection that Borrower may now or hereafter have to the laying of venue in any such court
and any claim that any such court is an inconvenient forum. Borrower hereby agrees and consents
that, in addition to any methods of service of process provided for under applicable law, all
service of process in any such suit, action or proceeding in any state court or any United States
federal court sitting in the state specified in the governing law section of this Agreement may be
made by certified or registered mail, return receipt requested, directed to Borrower at its address
for notice set forth in this Agreement, or at a subsequent address of which Lender received actual
notice from Borrower in accordance with the notice section of this Agreement, and service so made
shall be complete five (5) days after the same shall have been so mailed. Nothing herein shall
affect the right of Lender to serve process in any manner permitted by Law or limit the right of
Lender to bring proceedings against Borrower in any other court or jurisdiction.

Section
9.17   WAIVER OF JURY TRIAL.

BORROWER AND LENDER WAIVE TRIAL BY JURY IN RESPECT OF ANY DISPUTE (AS SUCH TERM IS DEFINED IN
SCHEDULE 1 ATTACHED HERETO) AND ANY ACTION ON SUCH DISPUTE. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY BORROWER AND LENDER, AND BORROWER AND LENDER HEREBY REPRESENT
THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY TO INDUCE THIS
WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE LOAN DOCUMENTS. BORROWER AND LENDER ARE EACH
HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION

26

 

IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL. BORROWER FURTHER REPRESENTS
AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF
THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL.

Section
9.18  Entire Agreement.

The Loan Documents constitute the entire understanding and agreement between Borrower and Lender
with respect to the transactions arising in connection with the Loan, and supersede all prior
written or oral understandings and agreements between Borrower and Lender with respect to the
matters addressed in the Loan Documents. In particular, and without limitation, the terms of any
commitment by Lender to make the Loan are merged into the Loan Documents. Except as incorporated
in writing into the Loan Documents, there are no representations, understandings, stipulations,
agreements or promises, oral or written, with respect to the matters addressed in the Loan
Documents.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

27

 

IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed under seal
as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	ASSET CAPITAL
PARTNERS, L.P.,

a Delaware limited partnership
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	ACC GP, LLC, a Delaware limited liability company, its general partner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: Asset Capital Corporation, Inc., a
Maryland corporation, its sole member
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	     By:
	 	/s/ Peter Minshall
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	     Name:
	 	Peter Minshall
	 

	 	 	 	 	 	 	 	     Title:
	 	Chief Executive Officer

	 	 	 	 	 
	 	LENDER:

CITIZENS BANK OF PENNSYLVANIA,

 a Pennsylvania banking corporation

 	 
	 	By:  	/s/ Gayle R. Rogers
 	 
	 	 	Name:  	Gayle R. Rogers 	 
	 	 	Title:  	Senior Vice President 	 
	 

[Signature Page to Loan Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]