Document:

exhibit10-1.htm

Exhibit 10-1

 

 

 

MORTGAGE WAREHOUSE LOAN AND SECURITY AGREEMENT

 

Dated as of November 14, 2011

 

among

 

CENTERLINE MORTGAGE CAPITAL INC. and

CENTERLINE MORTGAGE PARTNERS INC.,

as Borrowers

and

 

MANUFACTURERS AND TRADERS TRUST COMPANY,

as Lender

 

 

 

 

 

 

 

 

  

  

  

 

 

 

 

TABLE OF CONTENTS

 

 

 

	
SECTION 1.

	
DEFINITIONS

 

	
1

	  	
SECTION 1.1.

	
Definitions.

	
1

	  	
SECTION 1.2.

	
Consolidation.

	
18

	  	
SECTION 1.3.

	
Exhibits and Schedules.

	
18

	  	
SECTION 1.4.

	
Rules of Interpretation.

 

	
18

	
SECTION 2.

	
ADVANCES

 

	
19

	  	
SECTION 2.1.

	
Advances.

	
19

	  	
SECTION 2.2.

	
Credit Note.

	
20

	  	
SECTION 2.3.

	
Interest on Advances.

	
20

	  	
SECTION 2.4.

	
Principal Payments.

	
20

	  	
SECTION 2.5.

	
Procedure for Advances.

	
23

	  	
SECTION 2.6.

	
Method of Payment.

	
24

	  	
SECTION 2.7.

	
Record of Advances.

	
24

	  	
SECTION 2.8.

	
Application of Payments.

	
24

	  	
SECTION 2.9.

	
Following Business Day Convention.

	
24

	  	
SECTION 2.10.

	
Usury.

	
25

	  	
SECTION 2.11.

	
Joint and Several Obligations.

 

	
25

	
SECTION 3.

	
FEES

 

	
25

	  	
SECTION 3.1.

	
Nonusage Fee.

	
25

	  	
SECTION 3.2.

	
Miscellaneous Fees.

	
25

	  	
SECTION 3.3.

	
Fee Letter.

 

	
26

	
SECTION 4.

	
REPRESENTATIONS AND WARRANTIES

 

	
26

	  	
SECTION 4.1.

	
Organization, Powers, Etc.

	
26

	  	
SECTION 4.2.

	
Authority, Etc.

	
26

	  	
SECTION 4.3.

	
Compliance with Laws.

	
26

	  	
SECTION 4.4.

	
Government Approvals.

	
26

	  	
SECTION 4.5.

	
Valid and Binding Obligations.

	
27

	  	
SECTION 4.6.

	
Financial Statements.

	
27

	  	
SECTION 4.7.

	
Financial Condition.

	
27

	  	
SECTION 4.8.

	
Litigation.

	
27

	  	
SECTION 4.9.

	
Subsidiaries.

	
28

	  	
SECTION 4.10.

	
Accuracy of Information.

	
28

	  	
SECTION 4.11.

	
Accuracy of Representations and Warranties.

	
28

	  	
SECTION 4.12.

	
Investment Company.

	
28

	  	
SECTION 4.13.

	
ERISA.

	
28

	  	
SECTION 4.14.

	
Taxes/Tax Returns.

	
28

	  	
SECTION 4.15.

	
Properties.

	
29

	  	
SECTION 4.16.

	
Approved Lenders.

	
29

	  	
SECTION 4.17.

	
Agreements.

	
29

 

 

 

 

 

  

i

  

 

 

 

 

	  	
SECTION 4.18.

	
Foreign Asset Control Regulations.

	
29

	  	
SECTION 4.19.

	
Compliance with Federal Agency Law and Regulations.

	
30

	  	
SECTION 4.20.

	
Servicing.

	
30

	  	
SECTION 4.21.

	
Assumed Names.

 

	
30

	
SECTION 5.

	
COLLATERAL

 

	
30

	  	
SECTION 5.1.

	
Grant of Security Interest.

	
30

	  	
SECTION 5.2.

	
Eligible Collateral.

	
30

	  	
SECTION 5.3.

	
Release of Collateral.

	
31

	  	
SECTION 5.4.

	
Special Covenants.

	
31

	  	
SECTION 5.5.

	
Collection Rights.

	
33

	  	
SECTION 5.6.

	
Termination.

	
33

	  	
SECTION 5.7.

	
Collateral Transmittal Letter and Borrower Trust Receipt.

	
33

	  	
SECTION 5.8.

	
Security Interests in Mortgage Backed Securities.

	
34

	  	
SECTION 5.9.

	
Delivery and Review of Collateral.

 

	
35

	
SECTION 6.

	
CONDITIONS PRECEDENT

 

	
35

	  	
SECTION 6.1.

	
Opinions of Counsel.

	
35

	  	
SECTION 6.2.

	
No Default.

	
35

	  	
SECTION 6.3.

	
Supporting Documents.

	
35

	  	
SECTION 6.4.

	
Approvals, Etc.

	
37

	  	
SECTION 6.5.

	
Redemption

	
37

	  	
SECTION 6.6.

	
Each Advance.

	
37

	  	
SECTION 6.7.

	
Force Majeure.

 

	
38

	
SECTION 7.

	
AFFIRMATIVE COVENANTS

 

	
38

	  	
SECTION 7.1.

	
Payment of Debts, Taxes, Etc.; Maintenance of Insurance.

	
39

	  	
SECTION 7.2.

	
Preservation of Legal Existence.

	
39

	  	
SECTION 7.3.

	
Compliance with Laws, Etc.

	
39

	  	
SECTION 7.4.

	
Requested Information; Consult with Auditors.

	
39

	  	
SECTION 7.5.

	
Keeping of Records and Books of Account.

	
40

	  	
SECTION 7.6.

	
Maintenance of Approvals, Filings and Registrations.

	
40

	  	
SECTION 7.7.

	
Reporting Requirements.  Furnish to the Lender:

	
40

	  	
SECTION 7.8.

	
Indemnification.

	
45

	  	
SECTION 7.9.

	
Pledged Mortgages.

	
45

	  	
SECTION 7.10.

	
Further Assurance.

	
45

	  	
SECTION 7.11.

	
Appraisal of Servicing Agreements.

	
46

	  	
SECTION 7.12.

	
Bank Accounts.

	
46

	  	
SECTION 7.13.

	
Minimum Deposits.

 

	
46

	
SECTION 8.

	
NEGATIVE COVENANTS

 

	
46

	  	
SECTION 8.1.

	
Restrictions on Fundamental Changes.

	
46

	  	
SECTION 8.2.

	
Minimum Adjusted Net Worth.

	
47

	  	
SECTION 8.3.

	
Servicing Contracts.

	
47

 

 

 

 

 

  

ii

  

 

 

 

 

	 	
SECTION 8.4.

	
Debt Service Coverage Ratio.

	
47

	  	
SECTION 8.5.

	
Minimum Liquidity.

	
47

	  	
SECTION 8.6.

	
Debt.

	
48

	  	
SECTION 8.7.

	
Guaranties.

	
48

	  	
SECTION 8.8.

	
Liens.

	
48

	  	
SECTION 8.9.

	
Borrowing Base.

	
49

	  	
SECTION 8.10.

	
Conduct of Business.

	
49

	  	
SECTION 8.11.

	
Federal Agency Approvals.

	
49

	  	
SECTION 8.12.

	
Pledged Mortgages.

	
49

	  	
SECTION 8.13.

	
Distributions.

	
49

	  	
SECTION 8.14.

	
Servicing.

	
49

	  	
SECTION 8.15.

	
No Margin Loans.

	
50

	  	
SECTION 8.16.

	
Change of Control.

	
50

	  	
SECTION 8.17.

	
Subsidiaries.

	
51

	  	
SECTION 8.18.

	
Accounting Changes.

 

	
51

	
SECTION 9.

	
DEFAULTS

 

	
51

	  	
SECTION 9.1.

	
Defaults.

	
51

	  	
SECTION 9.2.

	
Remedies.

 

	
53

	
SECTION 10.

	
LENDER APPOINTED ATTORNEY-IN-FACT

 

	
56

	
SECTION 11.

	
BENEFIT OF AGREEMENT; ASSIGNMENT; PARTICIPATIONS

 

	
56

	  	
SECTION 11.1.

	
Successors and Assigns.

	
56

	  	
SECTION 11.2.

	
Right to Assign.

	
57

	  	
SECTION 11.3.

	
Pledge to Federal Reserve.

	
57

	  	
SECTION 11.4.

	
Participants.

 

	
57

	
SECTION 12.

	
MISCELLANEOUS SECTION

 

	
58

	  	
SECTION 12.1.

	
Notices.

	
58

	  	
SECTION 12.2.

	
Fees and Expenses of the Lender.

	
59

	  	
SECTION 12.3.

	
Applicable Law.

	
60

	  	
SECTION 12.4.

	
Amendments and Waivers.

	
60

	  	
SECTION 12.5.

	
Non-Waiver of Rights by the Lender.

	
60

	  	
SECTION 12.6.

	
Setoff.

	
60

	  	
SECTION 12.7.

	
Counterparts.

	
61

	  	
SECTION 12.8.

	
Severability.

	
61

	  	
SECTION 12.9.

	
Relationship of the Parties.

	
61

	  	
SECTION 12.10.

	
Confidentiality.

	
62

	  	
SECTION 12.11.

	
Consent to Jurisdiction.

	
62

	  	
SECTION 12.12.

	
Waiver of Jury Trial.

	
63

	  	
SECTION 12.13.

	
Integration Clause.

	
63

	  	
[Remainder of page intentionally left blank; signature page follows]

	
63

 

 

 

 

 

 

  

iii

  

 

 

LIST OF EXHIBITS AND SCHEDULES

 

 

	
Schedules

	  
	
Schedule 1 –

	
Fee Schedule

	
Schedule 2 –

	
Litigation

	
Schedule 3 –

	
Existing Debt Other Than Warehousing Debt

	
Schedule 4 –

	
Existing Liens

	
Schedule 5 –

	
Servicing Portfolio

	
Schedule 6 –

	
Letters of Credit

	  	  
	
Exhibits

	  
	
Exhibit A –

	
Form of Advance Request

	
Exhibit A-1 –

	
Eligible Collateral

	
Exhibit B-1 –

	
Fannie Mae DUS - Procedures for Documenting Advances

	
Exhibit B-2 –

	
FHA/Ginnie Mae - Procedures for Documenting Advances

	
Exhibit B-3 –

	
Freddie Mac Program Loans - Procedures for Documenting Advances

	
Exhibit C –

	
Form of Collateral Transmittal Letter

	
Exhibit D –

	
Form of Borrower Trust Receipt

	
Exhibit E –

	
List of Eligible Investors

	
Exhibit F –

	
Review of Collateral

	
Exhibit G –

	
Form of Compliance Certificate for Borrowers

	
Exhibit H –

	
Assumed Names

 

 

 

 

 

 

 

  

iv

  

 

 

MORTGAGE WAREHOUSE LOAN AND SECURITY AGREEMENT

 

 

This MORTGAGE WAREHOUSE LOAN AND SECURITY AGREEMENT dated as of November 14, 2011 by and among CENTERLINE MORTGAGE CAPITAL INC., a Delaware corporation having a principal place of business at 625 Madison Avenue, 5th Floor, New York, New York 10022 (“CMC”), CENTERLINE MORTGAGE PARTNERS INC., a Delaware corporation having a principal place of business at 625 Madison Avenue, 5th Floor, New York, New York 10022 (“CMP” and together with CMC collectively referred to as “Borrowers” and each individually as a “Borrower”), and Manufacturers and Traders Trust Company, with offices at 25 South Charles Street, 17th Floor, Baltimore, Maryland 21201 (the “Lender”). This Agreement shall be effective only on and after the Effective Date, as defined below.

 

WHEREAS, the Borrowers intend to originate from time to time certain Mortgage Loans (defined below);

 

WHEREAS, the Borrowers desire to fund such originations through Advances (defined below) from the Lender on the terms and conditions set forth herein;

 

WHEREAS, the Lender is willing to make Advances (defined below) to the Borrowers on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lender and the Borrowers hereby agree as follows:

 

	
SECTION 1.

	
DEFINITIONS

 

SECTION 1.1. Definitions.

 

The capitalized terms used in this Agreement shall have the following meanings, unless otherwise defined herein (such meanings to be equally applicable to both the singular and plural forms of the terms defined).

 

Adjusted Net Worth: means as to the Borrower and its consolidated Subsidiaries, on any day, (a) Adjusted Total Assets less (b) Adjusted Total Liabilities.

 

Adjusted Total Assets: means total assets determined on a consolidated basis consistent with GAAP and applied in a manner consistent with the financial statements delivered pursuant to this Agreement minus (i) advances to and receivables from Affiliates, Subsidiaries, directors and employees, (ii) Investments in Affiliates, (iii) assets pledged to secure obligations not included in Adjusted Total Liabilities, (iv) restricted cash, (v) intangible assets (but not including value associated with mortgage servicing rights), and (vi) goodwill.

 

Adjusted Total Liabilities: means total liabilities determined on a consolidated basis consistent with GAAP applied in a manner consistent with the financial statements delivered pursuant to this Agreement.

 

 

 

 

  

  

  

 

 

 

Advance:  means a cash advance made by the Lender to Borrowers in accordance with the terms and conditions of this Agreement.

 

Advance Date:  means a date on which an Advance is made hereunder.

 

Advance Request:  means a request for an Advance on a duly completed and submitted Advance Request Form.

 

Advance Request Form:  means a certificate in the form of Exhibit A attached hereto, pursuant to which the Borrowers may request an Advance from the Lender hereunder, together with all documents required to be attached thereto, as modified by the Lender from time to time in accordance with this Agreement.

 

Affiliate: means, for any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, that Person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by,” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of, voting securities, by contract, or otherwise.

 

Agreement:  means this Mortgage Warehouse Loan and Security Agreement among the Borrowers, the Lender, as the same from time to time may be extended, restated, amended, supplemented, waived or modified from time to time.

 

Applicable Nonusage Rate:  means the sum of the Minimum Nonusage Rate plus the Nonusage Rate Adjustment, provided that in no event shall the Applicable Nonusage Rate be less than the Minimum Nonusage Rate or greater than the Maximum Nonusage Rate.  The Applicable Nonusage Rate shall be determined quarterly as follows: for any calendar quarter, the Applicable Nonusage Rate shall be calculated using the Deposit Level Average of the prior calendar quarter, provided that for the first calendar quarter (or portion thereof) of the term of this Agreement, the Applicable Nonusage Rate shall mean .25%.  For illustration purposes only, the chart below shows what the Applicable Nonusage Rate would be for a calendar quarter when the corresponding Deposit Level Average of the prior calendar quarter is at the amount shown below.

 

	
Deposit Level Average

	
Applicable Nonusage Rate

	
$30,000,000

	
.25%

	
$20,000,000

	
.58%

	
$10,000,000

	
.92%

	
0

	
1.25%

 

 

Approved Custodian:  means a recognized financial institution or another Person that in each case is qualified in all respects and deemed acceptable to the Lender, in its sole discretion

 

 

 

 

 

  

  

  

 

 

 

exercised in good faith, to act as a custodian for either (i) a Mortgage Pool, or (ii) solely for purposes of Exhibit B, an Eligible Investor.

 

Approved Lender:  means a HUD-MAP-Approved Lender, a Ginnie Mae-Approved Lender, a Fannie Mae-Approved Lender and/or a Freddie Mac-Approved Lender.

 

ASAP Plus Agreement:  means that certain Multifamily As Soon As Pooled Plus Agreement dated as of ______________ between the applicable Borrower, as lender, and Fannie Mae to allow the Borrowers to deliver to Fannie Mae certain closed and funded multifamily mortgage loans (either to be securitized or sold to Fannie Mae as whole loans) from time to time under the DUS Program.

 

Assignment:  means a duly executed assignment to the Lender of a Mortgage, or the indebtedness secured thereby, and of all documents and rights related to the Mortgage Loan.

 

Assignment Documents: has the meaning assigned to such term in Section 11.2.

 

Authorized Persons: has the meaning assigned to such term in the Credit Note.

 

Automated Clearing House: means a nationwide electronic funds transfer network which enables participating financial institutions to distribute electronic credit and debit entries to bank accounts and to settle such entries.

 

Available Cash:  means, with respect to any Person, the sum of unrestricted cash and Cash Equivalents of such Person which are readily available to settle any Obligations, excluding cash or Cash Equivalents which have been attached or are subject to a Lien in favor of any Person.

 

Bailee Letter:  means a bailee letter substantially in the form prescribed by Fannie Mae or substantially comparable bailee letter or arrangements of Freddie Mac, HUD, or Ginnie Mae, if applicable, and otherwise in form and substance acceptable to the Lender.

 

BofA Warehouse Facility: means the Third Amended and Restated Warehousing Credit and Security Agreement, dated as of October 4, 2010, by and between the lenders referred to therein, Bank of America, N.A. as agent, and the Borrowers, as amended, restated, supplemented, or otherwise modified from time to time.

 

Borrower(s):  has the meaning ascribed to that term in the first paragraph of this Agreement.

 

Borrower Compliance Certificate: has the meaning assigned to such term in Section 7.7.4.

 

Borrower Liquidity Requirement:  has the meaning assigned to such term in Section 8.4.

 

Borrower Trust Receipt:  means a writing pursuant to which the Lender delivers documents to the Borrowers in order for such documents to be corrected or completed. With respect to Borrowers Trust Receipts referred to in this Agreement, the Lender, the Lender and the Borrowers acknowledge that Exhibit D hereto sets forth an acceptable form of Borrower Trust Receipt.

 

 

 

 

  

  

  

 

 

 

Borrowing Base:  means, as of any Advance Date, the Collateral Value as of such date.

 

Business Day:  means a day other than a Saturday, Sunday or a public holiday or the equivalent for banks generally under the applicable federal law and if no applicable federal law exists, then the applicable state law.

 

Capital Expenditure:  means a capital expenditure as determined in accordance with GAAP.

 

Cash Equivalents:  means (a) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than six (6) months from the date of acquisition (“Government Obligations”), (b) cash of a Borrower used to fund or partially fund Mortgage Loans originated by a Borrower that would be eligible for funding under this Agreement, and (c) Dollar denominated time and demand deposit accounts or money market accounts with the Lender.

 

CCG: means Centerline Capital Group Inc., a Delaware corporation.

 

Change of Control:  has the meaning assigned to such term in Section 8.16.

 

CHC: means Centerline Holding Company, a Delaware statutory trust.

 

CMC: has the meaning ascribed to that term in the first paragraph of this Agreement.

 

CMP: has the meaning ascribed to that term in the first paragraph of this Agreement.

 

Code:  means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time.

 

Collateral:  means all right, title and interest of the Borrowers, of every kind and nature, in and to all of the following property, assets and rights of the Borrowers wherever located, whether now existing or hereafter arising, and whether now or hereafter owned, acquired by or accruing or owing to the Borrowers, and whether or not constituting Eligible Collateral for purposes of determining the Borrowing Base, and any and all proceeds and products thereof, whether cash or non-cash, including insurance proceeds:

 

(i)           (a) all Mortgage Loans that are from time to time made or held by the Borrowers and delivered or caused to be delivered to the Lender (including delivery to a third party on behalf of the Lender) pursuant hereto, or come into the possession, custody or control of the Lender pursuant hereto and with respect to which an Advance has been made by the Lender hereunder and is outstanding; and all Promissory Notes and Mortgages evidencing and securing such Mortgage Loans and the indebtedness which is the subject of such Mortgage Loans (“Pledged Mortgages”); (b) all Securities which are from time to time created in whole or in part on the basis of Pledged Mortgages made or held by the Borrowers or in which the Borrowers have any other interest; and (c) all Purchase Commitments, Investor Security Commitments or other commitments of any Federal Agency or any other Person to purchase Pledged Mortgages or Securities from the Borrowers and deposits associated with any of the foregoing (collectively with all of the foregoing, the “Pledged Items”); together with all right, title and interest of the Borrowers in any and all of the documents listed on the applicable Exhibit B related to any of the foregoing Pledged Items;

 

 

 

 

  

  

  

 

 

(ii)           any commitments issued by any private mortgage insurer or by any Federal Agency to insure or guarantee any Pledged Mortgage or Security (but, excluding, any Purchase Commitments or Investor Security Commitments under which it would constitute a default if the Borrowers were to grant the Lender a security interest therein; provided, that all proceeds and other revenues received by the Borrowers with respect to such excluded Commitments shall constitute Collateral);

 

(iii)           the Operating Account, deposit accounts and/or securities accounts, all other deposit accounts with the Lender other than the Excepted Accounts and all other amounts standing to the credit of the Borrowers deposited in the Operating Account;

 

(iv)           all property related to the foregoing, including the right to service Pledged Mortgages while owned by the Borrowers, all accounts, accounts receivable, chattel paper, contract rights, and general intangibles of whatsoever kind so related and all documents or instruments in respect of any Pledged Item, including the right to receive all insurance proceeds and condemnation awards which may be payable in respect of the premises encumbered by any Pledged Mortgage other than Excluded Accounts Receivable;

 

(v)           all now existing and hereafter arising accounts, accounts receivable, including any and all accounts, accounts receivable, contract rights, general intangibles and other amounts due to the Borrowers for principal and interest advances, unpaid late charges, tax and insurance escrow account receivables and amounts held by the Borrowers as principal and interest escrows, and all tax, insurance and other mortgage escrow and compound accounts relating to a Pledged Item, (but not including the Excepted Accounts or Excluded Accounts Receivable);

 

(vi)           all files, surveys, certificates, correspondence, appraisals, computer programs, tapes, disks, cards, accounting records, and all other information, records and data of the Borrowers related to the Pledged Items (collectively, the “Data Files”);

 

 

 

 

 

 

 

  

  

  

 

 

 

(vii)           all now existing chattel paper, electronic chattel paper, ancillary rights, payment intangibles, contracts, contract rights and general intangibles constituting or relating to any of the Collateral;

 

(viii)           all securities, instruments, investment property, chattel paper, documents, commercial paper, certificates of deposit or deposit accounts related to the Pledged Items (other than the Excepted Accounts) delivered to or in the possession of the Lender or any other party for the benefit of the Lender which are the subject of the lien granted hereunder, or are otherwise subject to the lien of the Lender; and

 

(ix)           all of the Borrowers’ rights with respect to and all economic benefits accruing to the Borrowers under any interest rate protection agreement, interest rate swap agreement or similar hedge facility now or hereafter entered into by the Borrowers with respect to any Pledged Mortgages.

 

Lender hereby expressly acknowledges that it has no security interest in or other rights with respect to the Excepted Accounts.

 

Collateral Shortfall:  has the meaning set forth in Section 2.1.2.

 

Collateral Transmittal Letter:  means a letter containing the information set forth in Exhibit C hereto.

 

Collateral Value:  means, as of any date, as to any Eligible Collateral, the following amounts:

 

(i)           as to any Pledged Mortgage the lowest of (A) the outstanding principal balance of the Promissory Note for such Pledged Mortgage, or (B) the purchase price set forth in the Purchase Commitment for such Pledged Mortgage; or

 

(ii)           as to any Security which represents an undivided interest in an Eligible Mortgage Pool, the lowest of (A) 100% of the purchase price set forth in the Investor Security Commitment for such Security or (B) the value of the Mortgage Loans (determined in accordance with the terms of clause (i) of this definition) included in such Mortgage Pool immediately prior to their transfer to an Approved Custodian.

 

Commitment:  means the obligation of the Lender to make Advances not exceeding the Line of Credit Limit.

 

Controlled Group:  means all members of a controlled group of corporations and all trades or business (whether or not incorporated) under common control which, together with the Borrowers, are treated as a single employer under Section 414(b) or 414(c) of the Code.

 

Credit Note:  means that certain promissory note dated the date hereof in form and substance satisfactory to the Lender, executed and delivered by the Borrowers payable to the order of the Lender in the principal face amount of $50,000,000, as amended, modified and/or restated from time to time.

 

 

 

 

 

  

  

  

 

 

 

Data Files:  has the meaning assigned to such term in clause (vi) of the definition of Collateral.

 

Debt:  means, as to any Person, all obligations, contingent and otherwise, that in accordance with GAAP should be classified upon the consolidated balance sheet of such Person and such Person’s Subsidiaries as liabilities, including in any event and whether or not so classified: (a) all obligations for borrowed money or other extensions of credit whether secured or unsecured, absolute or contingent, including unmatured reimbursement obligations with respect to letters of credit or guarantees issued for the account of or on behalf of such Person and its Subsidiaries and all obligations representing the deferred purchase price of property; (b) all obligations evidenced by bonds, notes, debentures or other similar instruments; (c) all liabilities secured by any mortgage, pledge, security interest, lien, charge, or other encumbrance existing on property owned or acquired subject thereto, whether or not the liability secured thereby shall have been assumed; (d) all guarantees, endorsements and other contingent obligations whether direct or indirect, in respect of indebtedness of others or otherwise, including the negative value (to the extent not offset by collateral posted) of any Hedging Arrangements and otherwise with respect to puts, swaps, and other similar undertakings, any obligation to supply funds to or in any manner to invest in, directly or indirectly, the debtor, to purchase indebtedness, or to assure the owner of indebtedness against loss, through an agreement to purchase goods, supplies, or services for the purpose of enabling the debtor to make payment of the indebtedness held by such owner or otherwise; and (e) that portion of all obligations arising under capital leases that is required to be capitalized on the consolidated balance sheet of such Person and its Subsidiaries, but excluding, in all events, obligations arising under operating leases and accounts payable arising in the ordinary course of business.

 

Debt Service: means for any period of determination, for the Borrowers on a consolidated basis, the sum of (a) Interest Expense for such period, plus (b) the aggregate amount of regularly scheduled or mandatory principal payments of Indebtedness (excluding principal payments required under this Agreement or other Warehousing Debt and optional prepayments and balloon principal payments due on maturity) required to be made during such period.

 

Debt Service Coverage Ratio:  means the ratio of EBITDA to Debt Service.

 

Default:  means either an Event of Default or any event or condition that with the giving of notice or the passage of time or both would constitute an Event of Default.

 

Default Rate:  has the meaning assigned to such term in the Credit Note.

 

Defaulted Mortgage Loan:  means a Mortgage Loan being serviced by a Borrower pursuant to which Mortgage Loan the related mortgagor is in arrearage of its obligations of installment payments, and/or tax and insurance payments.

 

Deposit Level Average: has the meaning assigned to such term in the Credit Note.

 

 

 

 

  

  

  

 

 

 

Deposit Level Quotient: has the meaning assigned to such term in the Credit Note.

 

Derivative Agreement:  means any forward contract, futures contract, swap, option or other similar agreement or arrangement (including caps, floors, collars and similar agreements).

 

Distribution:  means any declaration to make, any making of, any payment of, or any incurrence of any liability to make (i) any distribution on account of any equity or membership interests in any Borrower, or (ii) any distribution through loans, or any other method, of cash, capital, funds or other assets of any Borrower, to the holder of any equity or membership interest in such Borrower.

 

DUS Program:  means Fannie Mae’s Delegated Underwriting and Servicing product line.

 

DUS Program Loans:  means the Multi-Family Loans, Seniors Loans or other Mortgage Loans sold to Fannie Mae pursuant to the DUS Program.

 

EBITDA: means, with respect to any fiscal period, the result (determined with respect to the same period and without duplication) of the following: (a) Net Income; plus (b) depreciation, amortization, and other non-cash items included as an expense of the Borrowers in the determination of Net Income; plus (c) all taxes included as an expense of the Borrowers in the determination of Net Income; plus (d) the expenses of the Borrowers for interest paid with respect to all Indebtedness (including, without limitation, the Loan) included as an expense of the Borrowers in the determination of Net Income; plus or minus (e) to the extent included in the determination of Net Income for such period, any extraordinary losses or gains resulting from sales, write-downs, write-ups, write-offs or other valuation adjustments of assets or liabilities; and minus (f) the non-cash amount of originated mortgage servicing rights included as income of the Borrowers in the determination of Net Income.

 

Effective Date:  means the date on which the conditions described in Section 6 are satisfied.

 

Eligible Collateral:  means, as of any date, any Pledged Item that at such time meets the requirements set forth in Exhibit A-1 hereto.

 

Eligible Investor:  means Fannie Mae, Freddie Mac or, as of any time, any other Person (other than a special purpose entity) which is reasonably acceptable to the Lender as an investor whose commitments may be relied upon for the timely purchase of Mortgage Loans, or Securities. The initial list of Eligible Investors, is attached hereto as Exhibit E; provided, however, the Lender may, from time to time, acting in its sole discretion, (a) eliminate any Person as an “Eligible Investor,” and/or (b) add as an “Eligible Investor” a Person proposed as such in writing by a Borrower; provided, further, however, the elimination of a Person as an “Eligible Investor” shall be effective only upon five (5) Business Days Notice from the Lender to the Borrowers and only with respect to Purchase Commitments relating to future Advances.  Exhibit E automatically shall be deemed to be amended from time to time to reflect the elimination or addition of Eligible Investors as provided herein.  The Lender’s records identifying Eligible Investors from time to time, reflecting all effective eliminations and additions, shall be conclusive, absent manifest error.  The Lender may, and at the Borrowers’ request shall, from time to time create an updated Exhibit E reflecting the then Eligible Investors, which the Lender shall furnish to the Borrowers.

 

 

 

 

 

  

  

  

 

 

 

Eligible Mortgage Pool:  means a Mortgage Pool for which (i) if the underlying Promissory Note is to be delivered to an Approved Custodian, the Approved Custodian has issued its initial certification (on the basis of which a Security is to be issued), (ii) there exists an Investor Security Commitment covering such Security, and (iii) such Security or the proceeds thereof will be delivered to the Lender or the Lender will otherwise receive a duly perfected first lien security interest therein.

 

Eligible Servicing Portfolio:  means the outstanding principal balance of all Mortgage Loans which the Borrowers are servicing under Servicing Agreements to which a Borrower is a party but excluding the outstanding principal balance of Mortgage Loans being serviced as of such date (a) which are Defaulted Mortgage Loans or where the mortgagor is a debtor in a proceeding under any chapter of the United States Bankruptcy Code or the mortgaged property is in foreclosure, (b) under Subservicing Agreement or delegated servicing basis, or (c) which Servicing Agreements are not owned by a Borrower free and clear of all Liens (other than in favor of a lender under Warehousing Debt).

 

ERISA:  means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

ERISA Affiliate:  means any corporation or trade or business which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as a Borrower is under common control (within the meaning of Section 414(c) of the Code) with such Borrower.

 

Event of Default:  means any of the events described in Section 9.1.

 

Excepted Accounts:  means any deposit accounts in which funds are being held in trust, in escrow or in a custodial capacity on behalf of third parties even though deposited by the Borrowers.

 

Excluded Accounts Receivable:  means accounts or accounts receivable due to or held by the Borrowers in an escrow or custodial capacity (such as (a) custodian under Servicing Agreements for Ginnie Mae, Freddie Mac, Fannie Mae or any other Eligible Investor, with respect to principal and interest payments or tax and insurance escrows related to Mortgage Loans, (b) other escrows such as replacement reserves or tenant improvements reserves, and (c) retainers and deposits on account of applications submitted by proposed mortgagors in connection with applying for a Mortgage Loan originated by the Borrowers).

 

Facility Termination Date:  means the earliest of (a) the date that is 365 days from the Effective Date, or (b) the date the Lender terminates the Commitment pursuant to Section 9.2.1; provided that if the Facility Termination Date, as so determined, is not a Business Day, the Facility Termination Date shall be the next succeeding Business Day.

 

Fannie Mae:  means Fannie Mae or other Federal Agency to which the powers and duties of Fannie Mae have been transferred.

 

 

 

 

 

 

  

  

  

 

 

Fannie Mae-Approved Lender:  means a Fannie Mae approved seller/servicer of Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage Loans to be sold to Fannie Mae under Fannie Mae’s so-called Prior Approval Program or DUS Program.

 

Fannie Mae Security:  means a security representing an undivided fractional interest in an Eligible Mortgage Pool or other instrument evidencing credit support provided by Fannie Mae for an Eligible Mortgage Pool, which security or other instrument is issued and guaranteed as to payment of principal and interest by Fannie Mae to an extent consistent with Fannie Mae’s customary practices. For purposes of this Agreement, a Fannie Mae Security shall also include an Eligible Mortgage Pool acquired by Fannie Mae from the Borrowers.

 

FDIC: means the Federal Deposit Insurance Corporation or any future equivalent agency of the United States of America.

 

Federal Agency:  means FHA, HUD, Freddie Mac, Fannie Mae or Ginnie Mae or any other instrumentality or agency of the United States of America or corporation organized under the laws of the United States of America which insures, guarantees or purchases Mortgage Loans.

 

Fee Letter: means that certain letter agreement dated as of the date hereof between the Borrowers and the Lender with respect to certain fees, as amended, modified and/or restated from time to time.

 

FHA:  means the Federal Housing Administration and any successor thereto.

 

FHA Construction Mortgage Loan:  means an FHA fully-insured Mortgage Loan for the construction or substantial rehabilitation of Multi-Family Properties or Seniors Properties.

 

FHA Mortgage Loan:  means an FHA Construction Mortgage Loan or an FHA Permanent Mortgage Loan.

 

FHA Permanent Mortgage Loan:  means an FHA fully-insured Mortgage Loan secured by a Mortgage on a Multi-Family Property or Seniors Property.

 

Following Business Day Convention:  has the meaning assigned to that term in Section 2.9.

 

Foreign Assets Control Regulation: has the meaning assigned to that term in Section 4.18.

 

Freddie Mac:  means the Federal Home Loan Mortgage Corporation or other Federal Agency, to which the powers and duties of the Federal Home Loan Mortgage Corporation have been transferred.

 

Freddie Mac-Approved Lender:  means a Freddie Mac approved seller/servicer of Mortgage Loans, eligible to originate, purchase, hold, sell and service Mortgage Loans to be sold to Freddie Mac under a Freddie Mac Program.

 

 

 

 

  

  

  

 

 

 

Freddie Mac Program:  means Freddie Mac’s Program Plus Seller/Servicer and Multifamily Targeted Affordable Seller/Servicer programs.

 

Freddie Mac Program Loan:  means a Mortgage Loan under a Freddie Mac Program.

 

Freddie Mac Security:  means a security representing an undivided fractional interest in an Eligible Mortgage Pool, which security is issued and guaranteed as to payment of interest and full collection of principal by Freddie Mac to an extent consistent with Freddie Mac’s customary practices.

 

Future Commitment:  has the meaning assigned to such term in Section 10.4.2.

 

GAAP:  means the generally accepted accounting principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors, as in effect from time to time.

 

Ginnie Mae:  means the Government National Mortgage Association or other Federal Agency as to which the powers and duties of the Government National Mortgage Association have been transferred.

 

Ginnie Mae Security:  means a security representing an undivided fractional interest in an Eligible Mortgage Pool, which security is guaranteed as to payment of principal and interest by Ginnie Mae to an extent consistent with Ginnie Mae’s customary practices, without regard as to whether the Borrowers collect any payments on such Mortgage Loans.

 

Ginnie Mae-Approved Lender:  means a Ginnie Mae approved seller/servicer of Mortgage Loans and issuer of mortgage-backed Securities guaranteed by Ginnie Mae.

 

Guaranty(ies):  means, with respect to any Person, any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt of any other Person or in any manner providing for the payment of any Debt of any other Person or otherwise protecting the holder of such Debt against loss (whether by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay or otherwise), including any and all obligations of such Person undertaken as a result of any prior or subsequent recourse sales of Mortgage Loans to a Federal Agency in connection with the issuance of a Security and recourse or co-insurance Servicing Agreements, provided that the term “Guaranty” and “Guaranties” shall not include endorsements for collection or deposit in the ordinary course of business or issuance of standard representations and warranties in conjunction with a “whole loan” sale of Mortgage Loans.

 

Hedging Arrangements: means, with respect to any Person, any agreements or other arrangements (including interest rate swap agreements, interest rate cap agreements and forward sale agreements) entered into to protect that Person against changes in interest rates or the market value of assets.

 

HUD:  means the United States Department of Housing and Urban Development.

 

HUD-MAP-Approved Lender:  means a lender approved by the United States Department of Housing and Urban Development eligible to originate, purchase, hold, sell and service Mortgage Loans pursuant to its Multi-Family Accelerated Processing Program.

 

 

 

 

 

  

  

  

 

 

 

Indebtedness: means, as to any Person, all obligations, contingent and otherwise, that in accordance with GAAP should be classified upon the consolidated balance sheet of such Person and such Person’s Subsidiaries as liabilities, or to which reference should be made by footnotes thereto, including in any event and whether or not so classified: (a) all obligations for borrowed money or other extensions of credit whether secured or unsecured, absolute or contingent, including, without limitation, unmatured reimbursement obligations with respect to letters of credit or guarantees issued for the account of or on behalf of such Person and its Subsidiaries and all obligations representing the deferred purchase price of property; (b) all obligations evidenced by bonds, notes, debentures or other similar instruments; (c) all liabilities secured by any mortgage, pledge, security interest, lien, charge, or other encumbrance existing on property owned or acquired subject thereto, whether or not the liability secured thereby shall have been assumed; (d) all guarantees, endorsements and other contingent obligations whether direct or indirect, in respect of indebtedness of others or otherwise, including any obligations under Hedging Arrangements and otherwise with respect to puts, swaps, and other similar undertakings, any obligation to supply funds to or in any manner to invest in, directly or indirectly, the debtor, to purchase indebtedness, or to assure the owner of indebtedness against loss, through an agreement to purchase goods, supplies, or services for the purpose of enabling the debtor to make payment of the indebtedness held by such owner or otherwise, and the obligations to reimburse the issuer in respect of any letters of credit; and (e) that portion of all obligations arising under capital leases that is required to be capitalized on the consolidated balance sheet of such Person and its Subsidiaries; but excluding, in all events obligations arising under operating leases and accounts payable arising in the ordinary course of business.

 

Interest Expense: means, for any period of determination, the sum (calculated on an annualized basis), on a consolidated basis of all interest, premium payments, debt discounts, fees, charges and related expenses of the Borrowers for such period in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, and specifically includes, without duplication, interest payable during such period under this Agreement, but only to the extent such interest expense exceeds interest income included in the Borrowers’ Net Income for such period.

 

Investor Security Commitment:  means a commitment issued by an Eligible Investor to purchase a Security representing an undivided interest in a Mortgage Pool, which commitment is satisfactory to the Lender in its sole discretion exercised in good faith.

 

Lender: has the meaning ascribed to that term in the first paragraph of this Agreement.

 

Lien:  means, with respect to any asset of any Person, any mortgage, lien, pledge, charge, security interest, claim or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, such Person shall be deemed to hold subject to a Lien any asset that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sales agreement, capital lease or other title retention agreement relating to such asset.

 

Line of Credit Limit:  means $50,000,000.

 

 

 

 

  

  

  

 

 

 

Loan:  means the aggregate amount of all Advances outstanding from time to time under this Agreement.

 

Loan Documents:  means this Agreement, the Credit Note, the Fee Letter, the Placement Fee Agreements (if any) and all documents executed in conjunction herewith, or therewith as the same from time to time may be extended, restated, amended, supplemented, waived or modified in whole or in part.

 

Margin Stock:  has the meaning assigned to that term in Regulation U.

 

Maximum Nonusage Rate: means one and one quarter percent (1.25%).

 

Maximum Nonusage Rate Adjustment: means one percent (1%).

 

Minimum Deposit Target: has the meaning set forth in Section 7.13.

 

Minimum Nonusage Rate: means one quarter of one percent (.25%).

 

Miscellaneous Fees and Charges:  means, without duplication, the miscellaneous fees payable to the Lender arising from disbursements, charges and expenses incurred by or on behalf of the Lender for the handling and administration of Advances and Collateral, including the fees set forth on Schedule 1 hereof, costs for Uniform Commercial Code, tax lien and judgment searches conducted by the Lender, filing fees, charges for wire transfers (outgoing and incoming) and check processing charges, charges for security delivery fees, recording fees, service fees, overdraft charges, costs and expenses of any site inspections conducted by the Lender, and any out-of-pocket fees and expenses incurred by the Lender in connection with the Agreement.

 

Moody’s:  means Moody’s Investors Services, Inc. and its successors.

 

Mortgage:  means a mortgage, deed of trust, security deed or similar instrument purporting to create a first lien or similar interest in real estate and improvements thereon.

 

Mortgage Loan:  means a loan of money evidenced by a Promissory Note and secured by a first lien (no subordinate liens shall be permitted) on land and a Multi-Family Property, a Seniors Property or other properties eligible under Fannie Mae, Freddie Mac, Ginnie Mae, FHA or HUD (or, for FHA fully insured loans, to be constructed) on land.

 

Mortgage Pool:  means a pool of one or more Pledged Mortgages based upon which a Security is issued.

 

Multi-Family Loan:  means a Mortgage Loan secured by a mortgage on a Multi-Family Property.

 

Multi-Family Property:  means improved real property containing or which will contain (among other uses) more than four (4) dwelling units, or more than four (4) pad sites to be occupied by manufactured homes.

 

 

 

 

  

  

  

 

 

 

Net Income: means, for any period, for any Person for such period without duplication, the net income (or loss), after all expenses, taxes and other proper charges, determined in accordance with GAAP eliminating (i) all inter-company items (ii) all earnings attributable to equity interests in Persons that are not Subsidiaries unless actually received by such Person, (iii) all income arising from the forgiveness, adjustment or negotiated settlement of any Debt, (iv) the undistributed earnings of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary of such amounts are not permitted by operation of the terms of its organizational documents or any agreement, instrument or laws applicable to such Subsidiary, and (v) any increase or decrease of income arising from any change in the method of accounting for any item from that employed in the preparation of the financial statements referred to in Section 7.7, in each case as determined in accordance with GAAP.

 

Nonusage Fee:  has the meaning set forth in Section 3.1.

 

Nonusage Rate Adjustment: means the Maximum Nonusage Rate Adjustment less the amount obtained by multiplying the Maximum Nonusage Rate Adjustment by the Deposit Level Quotient.

 

Obligations: means any and all amounts due from the Borrowers to the Lender hereunder or under any other Loan Document and all other liabilities and obligations of the Borrowers to the Lender however arising in connection with the Advances or any Loan Document, whether now existing or hereafter arising, direct or indirect, matured or unmatured, absolute or contingent, including without limitation any and all exposure under any Derivative Agreement and Automated Clearing House exposure or other accommodation by Lender to the Borrowers, in each case incurred hereunder or under any other Loan Document.

 

Operating Account:  means, collectively, with respect to the Borrowers, one or more demand deposit accounts maintained at the Lender in the Borrowers’ name.

 

PBGC:  means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

Person:  means an individual, corporation, limited liability company, partnership, joint venture, trust or unincorporated organization, or a government or any agency, instrumentality or political subdivision thereof, including a Federal Agency.

 

Placement Fee Agreement:  means a written agreement between the Borrowers and the Lender setting forth the terms and conditions under which the Lender has agreed to pay certain deposit placement fees to the Borrowers based upon available deposits maintained by the Borrowers with the Lender, as amended, modified and/or restated from time to time.

 

Plan:  means an employee pension benefit plan which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code as to which the Borrowers, or any member of the Controlled Group may have any liability.

 

Pledge Date:  means the date on which physical possession of the Promissory Note and other documents evidencing a Mortgage Loan or a Security is delivered in pledge to the Lender.

 

 

 

 

 

  

  

  

 

 

 

Pledged Item:  has the meaning set forth in clause (i) of the definition of “Collateral”.

 

Pledged Mortgage:  has the meaning set forth in clause (i) of the definition of “Collateral”.

 

Promissory Note:  means a note evidencing a Mortgage Loan indebtedness.

 

Purchase Commitment:  means a commitment in form reasonably satisfactory to the Lender to purchase Mortgage Loans from a Federal Agency or other Eligible Investor with respect to which the Lender holds a copy of such Purchase Commitment, or, if requested by the Lender, the original of such Purchase Commitment.

 

Rating Downgrade:  means (i) with respect to the obligations of Fannie Mae, either its Standard & Poor’s or Moody’s senior unsecured rating is downgraded below “A”, (ii) with respect to the obligations of the United States, either its Standard & Poor’s or Moody’s Local Long Term rating is downgraded below “A”, or (iii) with respect to the obligations of Freddie Mac, either its Standard & Poor’s or Moody’s senior unsecured rating is downgraded below “A”.

 

Recourse Delinquent Mortgage Loan:  means any Mortgage Loan which is 60 days or more past due as to which a Borrower is liable personally on a recourse basis for all or any portion of the loss on the Mortgage Loan.

 

Recourse Mortgage Loan:  means a Mortgage Loan serviced by a Borrower as to which such Borrower is liable personally on a recourse basis for all or any portion of the loss on the subject Mortgage Loan.

 

Regulation D:  means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.

 

Regulation U:  means Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the extension of credit by banks for the purpose of purchasing or carrying margin securities applicable to member banks of the Federal Reserve System and to non-bank lenders.

 

Regulation X:  means Regulation X of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor or other regulation or official interpretation of said Board of Governors relating to the provisions of Regulations G, T, and U for obtaining credit within or outside the United States for the purpose of purchasing securities applicable to borrowers who are subject to U.S. laws.

 

Reportable Event:  means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such section, with respect to a Plan, excluding, however, such events as to which the PBGC by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event, provided, however, that a failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

 

 

 

 

 

  

  

  

 

 

 

Requesting Borrower: a Borrower that is making a request for an Advance hereunder.

 

Required Mortgage Documents:  means, with respect to each Mortgage Loan (a) the Promissory Note, the Mortgage, and, if applicable, any security or pledge agreement, executed and delivered in connection with or relating to such Mortgage Loan; (b) as applicable, the original lender’s ALTA Policy of Title Insurance or its equivalent, documents evidencing the FHA commitment to insure, or private mortgage insurance, the appraisal, the environmental assessment, the engineering report, certificates of casualty or hazard insurance, credit information on the maker of the Promissory Note; (c) any other documents listed on Exhibits B-1, B-2, or B-3; and (d) any other document that is customarily desired for inspection or transfer incidental to the purchase of a Promissory Note, or a participation therein, by an Eligible Investor or that is customarily executed by the seller of a Promissory Note to an Eligible Investor.

 

Restricted Cash: means cash balances presented on a balance sheet as “Restricted Cash” in accordance with GAAP but net of any amounts that will be used exclusively to satisfy existing liabilities reflected on the balance sheet in accordance with GAAP.

 

Security or Securities:  means any Freddie Mac Security, Fannie Mae Security, Ginnie Mae Security or other mortgage-backed security issued by a Federal Agency or otherwise approved by the Lender and representing an undivided fractional interest in a Mortgage Pool that are created in whole or in part on the basis of Mortgages or that are delivered or caused to be delivered to the Lender pursuant hereto or that otherwise come into the possession, custody or control of the Lender pursuant hereto or that are registered by book-entry in the name of the Lender (including registration in the name of a third party on behalf of the Lender), in each case for the purpose of pledge, or in respect of which an Advance has been made by the Lender under this Agreement.

 

Seniors Loan:  means a Mortgage Loan secured by a mortgage on a Seniors Property.

 

Senior Officer:  means, for a particular Person, such Person’s president, chief executive officer, chief financial officer, or chief operating officer.

 

Seniors Property:  means improved real property containing or which will contain a retirement service center, board and care, intermediate care, chargeable care, assisted living, skilled nursing or other facility designed for occupancy by elderly persons.

 

Servicing Agreement:  means the right of a Borrower to collect, administer and enforce the rights of the holder of Mortgage Loans and to service Mortgage Loans, whether or not such Mortgage Loans are Pledged Mortgages.

 

Standard & Poor’s:  Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 

 

 

 

 

 

  

  

  

 

 

 

Subsequent Construction Draw: means, with respect to any FHA Construction Mortgage Loan, any borrowing advanced to the related mortgagor pursuant to such FHA Construction Mortgage Loan other than the initial advance.

 

Subservicing Agreement:  means a written contract or other understanding between a Borrower and another Person whereby such other Person delegates to such Borrower its rights and obligations to service Mortgage Loans under a Servicing Agreement which delegated rights and obligations cannot be terminated without cause by such other Person except if such Borrower is entitled to a fee on account of such termination.

 

Subsidiary:  of a Person means (i) any corporation more than 50% of the outstanding voting securities having ordinary voting power of which shall at the time be owned or controlled, directly or indirectly, by such Person or by one or more Subsidiaries of such Person or by such Person and one or more of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint venture or similar business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled. Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean a Subsidiary of a Borrower.

 

Treasury Regulations:  means regulations issued by the Department of the Treasury of the United States.

 

Under Application:  means that, with respect to any proposed DUS Program Loans, proposed FHA Construction Mortgage Loans or FHA Permanent Mortgage Loans, or proposed Freddie Mac Program Loans, the applicable Borrower has issued an application to the proposed borrower, such proposed borrower has delivered to the such Borrower an executed application in form and substance acceptable to such Borrower, and such proposed borrower has paid to such Borrower consideration sufficient for such Borrower to proceed with its approval process and due diligence with respect to such proposed DUS Program Loans, proposed FHA Construction Mortgage Loans or FHA Permanent Mortgage Loans, or proposed Freddie Mac Program Loans.

 

Unused Portion of the Line: means, for each day, the amount by which the Line of Credit Limit on such date exceeds the average outstanding principal balance of all Advances on such date.

 

Value of Servicing Agreements:  means the fair market value of the Servicing Agreements established from time to time pursuant to one or more updated appraisals of the Servicing Agreements prepared for the Lender in accordance with Section 7.11.

 

Warehousing Debt:  means Debt incurred under (i) this Agreement, (ii) the ASAP Plus Agreement, (iii) the BofA Warehouse Facility, or (iv) future mortgage warehouse lines of credit or similar facilities (including, but not limited to, repurchase facilities) used to finance the purchase or funding of mortgage loans that (a) are secured by mortgages on Multi-Family Properties, Seniors Properties, and other properties eligible under Fannie Mae, Freddie Mac, Ginnie Mae, FHA or HUD, (b) are subject to unconditional purchase commitments from Eligible Investors, and (c) provide for repayment of each advance made thereunder not more than sixty (60) days from the date such advance is made.

 

 

 

 

 

  

  

  

 

 

 

Warehouse Period:  means the number of days from the date of the Assignment of a Pledged Item until such Pledged Item ceases to be Eligible Collateral as provided on Exhibit A-1 for each type of Pledged Item.

 

SECTION 1.2. Consolidation.

 

Except as may be otherwise specifically provided herein, in each instance in this Agreement where a financial term is used or financial measurement is to be made on a so-called “consolidated” basis, such financial term or measurement shall apply to the Person named in such context on a consolidated basis in accordance with GAAP with such Person’s Subsidiaries or other subsidiaries (and not such Person’s other Affiliates).

 

SECTION 1.3. Exhibits and Schedules.

 

The Exhibits and Schedules attached to this Agreement are hereby incorporated herein, and all terms used therein that are defined herein shall have the same meanings therein as herein unless otherwise defined therein.

 

SECTION 1.4. Rules of Interpretation.

 

SECTION 1.4.1.  A reference to any document or agreement shall include such document or agreement as amended, modified or supplemented from time to time in accordance with its terms and the terms of this Agreement.

 

SECTION 1.4.2.  The singular includes the plural and the plural includes the singular (including all references to Borrower or Borrowers).

 

SECTION 1.4.3.  Unless otherwise expressly indicated, a reference to any law or regulation includes any amendment or modification to such law or regulation.

 

SECTION 1.4.4.  A reference to any Person includes its permitted successors and permitted assigns.

 

SECTION 1.4.5.  Accounting terms not otherwise defined herein have the meanings assigned to them by GAAP applied on a consistent basis by the accounting entity to which they refer.

 

SECTION 1.4.6.  The words “include”, “includes” and “including” are not limiting.

 

SECTION 1.4.7.  All terms not specifically defined herein or by GAAP, which terms are defined in the Uniform Commercial Code as in effect in the State of New York shall have the meaning provided therein.

 

SECTION 1.4.8.  Reference to a particular Section refers to that section of this Agreement unless otherwise indicated.

 

 

 

 

  

  

  

 

 

 

SECTION 1.4.9.  The words “herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement as a whole and not to any particular section or subdivision of this Agreement.

 

SECTION 1.4.10.  Unless otherwise expressly indicated, in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including,” the words “to” and “until” each mean “to but excluding,” and the word “through” means “to and including.”

 

SECTION 1.4.11.  This Agreement and the other Loan Documents are the result of negotiation among, and have been reviewed by counsel to, among others, the Lender, the Lender, and the Borrowers and are the product of discussions and negotiations among all parties. Accordingly, this Agreement and the other Loan Documents are not intended to be construed against the Lender merely on account of the Lender’s or any Lender’s involvement in the preparation of such documents.

 

SECTION 1.4.12.  If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrowers or Lender shall so request, the Lender and the Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrowers shall provide to the Lender financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

 

SECTION 1.4.13.  Whenever the Lender has reserved a right to make a decision or to take an action in its or their discretion or in its sole discretion, the Lender agrees to exercise such discretion or sole discretion, as is appropriate, in good faith.

 

	
SECTION 2.

	
ADVANCES

 

SECTION 2.1. Advances.

 

SECTION 2.1.1.  Advances Available Until Facility Termination Date.  Subject to the terms and conditions hereof, and provided no Default has occurred and is continuing, the Lender agrees to make Advances to the Borrowers from time to time prior to the Facility Termination Date, in amounts not to exceed the Line of Credit Limit, and the Borrowers may borrow, repay and reborrow in accordance with the terms of this Agreement; provided, however, that no borrowing shall be permitted to the extent that such borrowing would cause the total outstanding principal amount of the Advances to exceed the Borrowing Base as of the applicable Advance Date.

 

 

 

 

 

  

  

  

 

 

 

SECTION 2.1.2. Collateral Shortfall.

 

If (i) the aggregate outstanding amount of all Advances advanced hereunder exceeds the Borrowing Base (a “Collateral Shortfall”), (ii) the Lender provides to the Borrowers notice, or the Borrowers otherwise have actual knowledge, of such Collateral Shortfall, and (iii) the Borrowers do not deliver to the Lender within two (2) Business Days after such notice is given or such knowledge is obtained, sufficient Eligible Collateral required pursuant to Section 5.2 to cure such Collateral Shortfall, then no later than 2:00 p.m. (Eastern time) on such second Business Day after such written notice or actual knowledge, the Borrowers shall cure the then-current Collateral Shortfall by either: (1) depositing with the Lender cash in an amount equal to the then-current Collateral Shortfall, (2) providing to the Lender a first priority perfected security interest in Cash Equivalents held at the Lender in an amount equal to the then-current Collateral Shortfall, or (3) prepaying, without demand or notice, the principal amount of the Advances to the extent of the then-current Collateral Shortfall.

 

SECTION 2.2. Credit Note.

 

The Borrowers shall execute and deliver to the Lender the Credit Note.

 

Upon receipt of an affidavit and indemnity from the Lender as to the loss, theft, destruction or mutilation of the Lender’s Credit Note or any other Loan Document which is not of public record, and in case of any such loss, theft, destruction or mutilation, upon cancellation of such Credit Note or other Loan Document, the Borrowers will issue, in lieu thereof, a replacement Credit Note or other Loan Document of the same principal amount thereof and otherwise of like tenor.

 

SECTION 2.3. Interest on Advances.

 

SECTION 2.3.1. Rates on Advances:

 

Except as provided below, the outstanding principal balance of the Advances shall bear interest at the rate set forth in the Credit Note.  Absent demand by the Lender for payment of interest monthly, accrued interest on each Advance shall be due and payable upon payment in full of such Advance.

 

If, for any reason, (i) the Borrowers repay an Advance prior to at least two (2) days of interest accruing on such Advance, or (ii) the Borrowers instruct the Lender not to make a previously requested Advance after the Lender has reserved funds or made other arrangements necessary to enable Lender to fund that Advance, the Borrowers agree to pay to the Lender an administrative fee equal to two (2) days of interest on that Advance at the rate applicable to Advances set forth in the Credit Note.  Administrative fees are due and payable within five (5) Business Days after notice from the Lender.

 

SECTION 2.4. Principal Payments.

 

SECTION 2.4.1.  The Borrowers shall cause all Eligible Investors to wire transfer or otherwise send all payments with respect to proceeds of Pledged Items directly to the Lender.  In the event that, notwithstanding the foregoing, a Borrower receives any proceeds with respect to a Pledged Item, such Borrower shall deliver any such proceeds to the Lender within one (1) Business Day after its receipt thereof. On the first (1st) Business Day that the proceeds so delivered constitute collected funds at the Lender, the Lender shall, effective as of such date, apply the amount of such proceeds against the Advances. The Lender agrees that, provided there is then outstanding no Default, all collected funds in its possession as of 2:00 p.m. (Eastern time) on any Business Day shall be applied, if identifiable, against the Advances associated with the Purchase Commitment or Investor Security Commitment against which such payments are made, or, if not identifiable, against the Advances as the Borrowers may instruct in writing, or, in the absence of such instruction, as the Lender may determine, on such date and any collected funds which come into its possession after such time, shall be so applied on the next Business Day.

 

 

 

 

  

  

  

 

 

 

SECTION 2.4.2.  Each Advance, together with all accrued interest and other charges due with respect to such Advance, shall be repaid in full upon the earlier to occur of (i) the payment of the purchase price set forth in the Purchase Commitment or Investor Security Commitment from an Eligible Investor with respect to the Eligible Loan funded with such Advance, or (ii) the last day of the Warehouse Period applicable to such Advance, as set forth on Exhibit A-1.  The outstanding principal amount of all Advances, together with all accrued interest and other charges due hereunder, shall be due and payable in full upon the earliest of (a) the Facility Termination Date or (b) the acceleration of the Obligations pursuant to Section 9.2.

 

SECTION 2.4.3.  The Borrowers shall be obligated to pay the Lender, without the necessity of prior demand or notice from the Lender, the following amounts in good and immediately available funds upon the earlier to occur of any of the following events:

 

(i)           upon the failure by the Borrowers to furnish the Lender with sufficient Eligible Collateral or cash to cure a Collateral Shortfall within the time period specified in Section 2.1.2, the full amount necessary to cure such Collateral Shortfall; and

 

(ii)           within two (2) Business Days after the Lender’s written notice to the Borrowers that any Pledged Item fails to constitute Eligible Collateral or is otherwise not eligible for inclusion in the Borrowing Base, the amount of the Advance attributable to such Pledged Item.

 

SECTION 2.4.4.  Upon telephonic or written notice to the Borrowers by the Lender, the Borrowers must pay to Lender the amount of any outstanding Advance against a specific Pledged Item upon the earliest occurrence of any of the following events:

 

(i)           On the date an Advance was made, if the Mortgage Loan to be funded by that Advance is not closed and funded;

 

(ii)           Three (3) Business Days elapse from the date an Advance was made against a Pledged Mortgage, without receipt by Lender or its bailee of the documents relating to that Pledged Mortgage required to be delivered on that date;

 

 

 

 

 

 

 

  

  

  

 

 

 

(iii)           Ten (10) Business Days elapse without the return to the Lender of a document relating to a Pledged Mortgage delivered by the Lender to the Borrowers under a Borrower Trust Receipt for correction or completion;

 

(iv)           On the date on which a Pledged Mortgage is determined to have been originated based on untrue, incomplete or inaccurate information or otherwise to be subject to fraud, whether or not the Borrowers had knowledge of the misrepresentation, incomplete or incorrect information or fraud;

 

(v)           On the date on which the Borrowers know, have reason to know, or receive notice from the Lender, that (A) one or more of the representations and warranties set forth in Section 4 or Exhibit A-1 were inaccurate or incomplete in any material respect on any date when made or deemed made, or (B) the Borrowers have failed to perform or comply with any covenant, term or condition applicable to them set forth in Section 7 or Section 8;

 

(vi)           On the date a default occurs with respect to the Pledged Mortgage or a Lien prior to the Pledged Mortgage securing repayment of the Pledged Mortgage;

 

(vii)           On the mandatory delivery date of the related Purchase Commitment, if the specific Pledged Mortgage has not been delivered under the Purchase Commitment prior to such mandatory delivery date, or on the date the related Purchase Commitment expires or is terminated;

 

(viii)           Three (3) Business Days after the date a Pledged Mortgage is rejected for purchase by an Eligible Investor, unless another Purchase Commitment is provided within that three (3) Business Day period;

 

(ix)           Upon the sale, other disposition or prepayment in full of any Pledged Item or, with respect to a Pledged Mortgage included in an Eligible Mortgage Pool, upon the sale or other disposition of the related Security;

 

(x)           With respect to any Pledged Mortgage, any of the documents relating to the Pledged Mortgage, upon examination by the Lender, are found not to be in compliance with the requirements of this Agreement or the related Purchase Commitment; or

 

(xi)           On the date an issuer of a Purchase Commitment shall be adjudicated bankrupt or insolvent, or apply for or consent to the appointment of any receiver, trustee, custodian or similar officer for it or for all or any substantial part of its property; or such receiver, trustee, custodian or similar officer shall be appointed without the application or consent of said issuer of a Purchase Commitment, as the case may be; or the issuer of a Purchase Commitment shall institute (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding relating to it under the laws of any jurisdiction; or any such proceeding shall be instituted (by petition, application or otherwise).

 

 

 

 

 

 

  

  

  

 

 

 

 

 

 

SECTION 2.4.5.  If the principal amount of any Mortgage Loan that is pledged to the Lender under this Agreement is prepaid in part while an Advance is outstanding against such Mortgage Loan, the Borrowers must pay to the Lender within three (3) Business Days after a Borrower’s receipt of such amount, without the necessity of prior demand or notice from the Lender, to be applied against the Advance.

 

SECTION 2.4.6.  The Lender reserves the right to revalue any Mortgage Loan pledged to the Lender under this Agreement that is not (i) covered by a Purchase Commitment from an Eligible Investor, or (ii) an FHA Project Mortgage Loan or an FHA Construction Mortgage Loan, in each case if such Mortgage Loan is to be exchanged for an Security and such Security is not covered by a Purchase Commitment.  The Borrowers must pay to the Lender, without the necessity of prior demand or notice from the Lender, any amount required after any such revaluation to reduce the principal amount of the Advance outstanding against the revalued Mortgage Loan to an amount equal to the Collateral Value for the applicable type of Eligible Collateral less the fair market value of the Mortgage Loan.

 

SECTION 2.4.7.  The Borrowers shall have the right to prepay Advances at any time, in whole but not in part, without any premium or penalty.  Partial prepayments of Advances shall not be permitted.

 

SECTION 2.5. Procedure for Advances.

 

Subject to the requirement that all of the conditions precedent described in Section 6 have been satisfied, a Borrower may request an Advance by delivering to the Lender a completed and signed request for an Advance on an appropriate Advance Request Form, together with a description of the transaction in the form attached thereto, and all documents required to be submitted in conjunction with the Advance Request Form no later than 2:00 p.m. (Eastern time) on the Business Day prior to the date on which such Advance is requested to be made. Any Request for Advances pursuant to an Advance Request Form received by the Lender later than 2:00 p.m. (Eastern time) on a Business Day will be deemed received on the following Business Day. Before funding, the Lender shall have the right to examine such Advance Request Form and accompanying documents and may reject such of them as do not meet the requirements of this Agreement or of the related Purchase Commitment.  All Advances shall be wired by the Lender to the applicable title company or settlement attorney in accordance with the applicable Exhibit B.  Notwithstanding anything in this Agreement to the contrary, the Lender shall not be obligated to make any Advance unless such Advance can be matched by the Lender to a specific Mortgage Loan which has been closed or will be closed within one (1) Business Day of the date of such Advance.  The Lender shall have the right, upon prior written notice to the Borrowers, to modify the Advance Request Form, and any other Exhibit or document referred to in this Agreement, to conform to current legal requirements and/or customary practices of mortgage warehousing lenders, and, as so modified, those Exhibits and documents will become part of this Agreement.

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 2.6. Method of Payment.

 

All payments shall be made by the Borrowers to the Lender at its 25 South Charles Street, 17th Floor, Baltimore, Maryland offices or such other place as the Lender may from time to time specify in writing in lawful currency of the United States of America in immediately available funds, without counterclaim or set-off and free and clear of, and without any deduction or withholding for, any taxes or other payments by 2:00 p.m. (Eastern time) on the date when due.  The Lender is hereby authorized, on or after the due date, to charge the Operating Account and/or any other account that is not an Excepted Account with the amount of all principal and interest payments due under this Agreement, or the other Loan Documents and upon the occurrence and during the continuation of an Event of Default, Lender is hereby authorized on or after the due date, to charge (but without duplication) the Operating Account and/or any other account that is not an Excepted Account with the amount of all unpaid Miscellaneous Fees and Charges, and costs and expenses to which the Lender is entitled under this Agreement. The failure of the Lender to so charge such account shall not affect or limit the Borrowers’ obligation to make any required payment.

 

SECTION 2.7. Record of Advances.

 

The Lender is hereby authorized to record the principal amount of each of its Advances and each repayment on the schedule attached to the Credit Note; provided, however, that the failure to so record shall not affect each Borrower’s obligations under the Credit Note. The Lender shall send monthly invoices to the Borrowers in the Lender’s customary form, from time to time, which invoices shall indicate amounts due hereunder, provided, however, that the Lender’s failure to send any invoices shall not diminish in any way, or constitute a defense to, the Borrowers’ Obligations.

 

SECTION 2.8. Application of Payments.

 

All payments shall be applied, first, to the payment of all fees, expenses and other amounts due to the Lender (excluding principal and interest), then, to accrued interest, and the balance on account of outstanding principal; provided, however, that after the occurrence and during the continuance of an Event of Default hereunder, payments may be applied to the Obligations of the Borrowers by the Lender in such order of priority as the Lender may determine in its sole discretion.

 

SECTION 2.9. Following Business Day Convention.

 

Except as otherwise specifically provided in this Agreement, the Following Business Day Convention shall be used to adjust any relevant date if that date would otherwise fall on a day that is not a Business Day.  For purposes of this Agreement, the term “Following Business Day Convention” shall mean that an adjustment will be made if any relevant date would otherwise fall on a day that is not a Business Day so that the date will be the first following day that is a Business Day. All payments hereunder, including of principal, interest, fees, or otherwise, shall be adjusted in accordance with the Following Business Day Convention unless this Agreement shall specifically provide otherwise.

 

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 2.10. Usury.

 

All agreements between the Borrowers, the Lender are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of maturity of the Obligations or otherwise, shall the amount paid or agreed to be paid to Lender for the use or forbearance of the indebtedness evidenced hereby, exceed the maximum permissible under applicable law. As used herein, the term “applicable law” shall mean the law in effect as of the date hereof; provided, however, that in the event there is a change in the law which results in a higher permissible rate of interest, then, the Loan Documents shall be governed by such law as of its effective date. In this regard, it is expressly agreed that it is the intent of the Borrowers, the Lender in the execution, delivery and acceptance of the Loan Documents to contract in strict compliance with the laws of the State of New York from time to time in effect. If, under or from any circumstances whatsoever, fulfillment of any provision hereof or in any of the Loan Documents at the time of performance of such provision shall be due, (i) shall involve transcending a limit of such validity prescribed by applicable law, then the obligation to be fulfilled will automatically be reduced to the limit of such validity, and (ii) shall ever cause the Lender to receive an interest amount which would exceed the highest lawful rate, then such portion of the interest payment which would be classified as excessive interest instead shall be applied to the reduction of the principal balance evidenced hereby and not to the payment of interest. This provision shall control every other provision of all agreements between the Borrowers and the Lender.

 

SECTION 2.11. Joint and Several Obligations.

 

Each of CMC and CMP hereby acknowledges and agrees that that it shall be jointly and severally liable for all of the Obligations of the Borrowers under this Agreement and the other Loan Documents.

 

	
SECTION 3.

	
FEES

 

SECTION 3.1. Nonusage Fee.

 

For each calendar quarter (or part thereof) prior to the Facility Termination Date, the Borrowers shall pay to the Lender, for the account of the Lender, a nonusage fee (the “Nonusage Fee”) equal to the sum of all the products obtained by multiplying, for each day during such calendar quarter (or part thereof), the Applicable Nonusage Rate times the Unused Portion of the Line on such date.  Such Nonusage Fee shall be payable in arrears on the first (1st) Business Day of each calendar quarter occurring after the Effective Date and on the Facility Termination Date.  The Lender’s determination of the Nonusage Fee is conclusive and binding, absent manifest error.

 

SECTION 3.2. Miscellaneous Fees.

 

The Borrowers shall pay and/or reimburse to the Lender all Miscellaneous Fees and Charges within five (5) Business Days after being invoiced by the Lender.

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 3.3. Fee Letter.

 

Certain other fees due the Lender are set forth in the Fee Letter.

 

	
SECTION 4.

	
REPRESENTATIONS AND WARRANTIES

 

Each Borrower represents and warrants to the Lender that:

 

SECTION 4.1. Organization, Powers, Etc.

 

Each Borrower is a corporation duly organized, validly existing and authorized to exercise its powers, rights and privileges under the laws of the State of Delaware and is qualified to do business and is in good standing in each other jurisdiction in which the failure to be so qualified would reasonably be expected to have a material adverse effect on its business including its financial condition, properties and results of operations and has all requisite power and authority to conduct its business, to own its properties and to execute and deliver, and to perform all of its obligations under, this Agreement and the other Loan Documents.

 

SECTION 4.2. Authority, Etc.

 

The execution, delivery and performance of this Agreement and the other Loan Documents to which each of the Borrowers is, or is to become, a party and the transactions contemplated hereby and thereby (i) are within the authority of such Person, (ii) have been duly authorized by all necessary corporate proceedings, (iii) do not conflict with or result in any breach or contravention of any Legal Requirement (including, without limitation, Regulation U or X or the rules and regulations of the Securities Exchange Commission or any regulatory commission of any jurisdiction) to which such Person is subject or any judgment, order, writ, injunction, license or permit applicable to such Person, and (iv) do not conflict with any provision of such Person’s organizational documents or other charter documents or bylaws of, or any indenture or loan or credit agreement or any other agreement, lease or instrument to which such Borrower is a party or by which such Borrower or any of its respective properties may be  bound or affected, except where such conflict would not have a materially adverse effect on such Person, CHC or CCG.

 

SECTION 4.3. Compliance with Laws.

 

Such Borrower is in compliance with the requirements of all applicable laws, rules, regulations and orders of any governmental authority, except for non-compliance with which would not, singly or in the aggregate, have a material adverse effect on its business including its financial condition, properties and results of operations.

 

SECTION 4.4. Government Approvals.

 

No authorization, consent, approval, license, exemption of or filing or registration with any existing court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or will be necessary for the valid execution, delivery and performance by such Borrower of this Agreement or the other Loan Documents. Such Borrower is in compliance with all licensing requirements in all states in which it originates or sells Mortgage Loans and all rules, regulations and other requirements of all Federal Agencies with respect to which it originates or sells Mortgage Loans, except for any non-compliance which would not, singly or in the aggregate, have a material adverse effect on its business including its financial condition, properties or results of operations.

 

 

 

 

 

  

  

  

 

 

 

SECTION 4.5. Valid and Binding Obligations.

 

This Agreement, the Credit Note and each of the other Loan Documents to which such Borrower is a party constitute legal, valid and binding obligations of such Borrower enforceable against such Borrower in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity.

 

SECTION 4.6. Financial Statements.

 

SECTION 4.6.1.  The financial statements of the Borrower and their Subsidiaries as of the Borrowers’ fiscal year end on December 31, 2010, consisting of the Borrowers’ balance sheet and the related statements of income and changes in cash flows for the fiscal year then ended, audited by the Borrowers’ certified public accountants, copies of which have been heretofore furnished to the Lender, are in conformity with GAAP and fairly present, in all material respects, the financial condition of the Borrowers and their Subsidiaries as of such date and the results of the operations and changes in cash flows of the Borrowers and their Subsidiaries for such fiscal year.

 

SECTION 4.6.2.  The financial statements of the Borrowers and their Subsidiaries as of the period ending on June 30, 2011, consisting of the Borrowers’ balance sheet and the related statements of income and changes in financial position for the period then ended, certified to by a duly authorized Senior Officer of the Borrowers, copies of which have been heretofore furnished to the Lender, are in conformity with GAAP and fairly present, in all material respects, the financial condition of the Borrower and their Subsidiaries as of such date and the results of the operations of the Borrowers and their Subsidiaries for such period.

 

SECTION 4.7. Financial Condition.

 

After giving effect to the transactions contemplated hereby (i) the aggregate value of all assets and properties of the Borrowers at a fair valuation, will be greater than the total amount of their liability on claims, and (ii) the aggregate present fair salable value of the Borrowers’ assets on a going concern basis will be greater than the amount that will be required to pay their probable liability on their existing debts, including contingent liabilities, as they become absolute and mature. The Borrowers have, and have no reason to believe they will not have, sufficient capital for the conduct of their business. The Borrowers do not intend to incur, and do not believe they have incurred, debts beyond their ability to pay as they mature.

 

SECTION 4.8. Litigation.

 

Except as set forth on Schedule 2 hereto, there are no actions, suits or proceedings pending or, to the knowledge of such Borrower after reasonable investigation, threatened against or affecting such Borrower or any of its respective properties before any court, arbitrator or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign (including the Securities Exchange Commission or any regulatory commission of any jurisdiction), which, if determined adversely to such Borrower would, singly or in the aggregate, have a material adverse effect on the financial condition, or on the respective properties or operations, of such Borrower or the transactions contemplated by this Agreement and the Credit Note.

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 4.9. Subsidiaries.

 

The Borrowers have no Subsidiaries.

 

SECTION 4.10. Accuracy of Information.

 

All written information supplied by the Borrowers to the Lender relating to the Borrowers (or such other entities) was, when taken as a whole and together with the representations and warranties contained in this Agreement and any other Loan Documents, true, complete and accurate in all material respects when made, and there has been no change which has a material adverse effect on the condition, financial or otherwise, of the Borrowers (or such other entities) from the time such information was provided to the Lender, except as disclosed to the Lender in writing.

 

SECTION 4.11. Accuracy of Representations and Warranties.

 

The representations and warranties of the Borrowers contained in each other Loan Document delivered in connection with this Agreement are, or when such document is delivered will be, true and correct.

 

SECTION 4.12. Investment Company.

 

None of the Borrowers is an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or an “investment adviser” within the meaning of the Investment Advisers’ Act of 1940, as amended.

 

SECTION 4.13. ERISA.

 

Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and any other applicable Federal or state law; and no event or condition is occurring or exists with respect to any Plan concerning which such Borrower would be under an obligation to furnish a report to the Lender in accordance with Section 7.7.9.

 

SECTION 4.14. Taxes/Tax Returns.

 

Such Borrower has filed or caused to be filed all federal, state and local tax returns (i) which, to its knowledge, are required to be filed and (ii) which the failure to file could result in a material adverse effect on such Borrower’s business, including its financial condition, properties and operations, such taxes have been paid when due, except taxes the validity of which are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on such Borrower’s books, as necessary.

 

 

 

 

 

  

  

  

 

 

 

 

SECTION 4.15. Properties.

 

Such Borrower is the lawful owner of its respective Collateral and is and will be the lawful owner of the Collateral, free and clear of all Liens.

 

SECTION 4.16. Approved Lenders.

 

CMC is a HUD-MAP-Approved Lender, a Ginnie Mae-Approved Lender, a Fannie Mae-Approved Lender and is in good standing under the DUS Program.  CMP is a Freddie Mac-Approved Lender.  Schedule 6 is a true and complete list of all letters of credit issued in favor of Fannie Mae or Freddie Mac (and the principal amounts thereof).  Each such letter of credit is in full force and effect, there have been no draws advanced thereunder and the applicable Borrower has not received notice of non-renewal of any such letters of credit.

 

SECTION 4.17. Agreements.

 

Neither Borrower nor any Subsidiary of the Borrowers is a party to any agreement, instrument or indenture or subject to any restriction materially and adversely affecting its business, operations, assets or financial condition. Neither Borrower nor any Subsidiary of the Borrowers is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement, instrument, or indenture which default could result in a material adverse change in such Borrower’s business, operations, properties or financial condition as a whole.  No holder of any indebtedness of any Borrower or of any of its Subsidiaries has given notice of any asserted default under that indebtedness, and no liquidation or dissolution of such Borrower or of any of its Subsidiaries and no receivership, insolvency, bankruptcy, reorganization or other similar proceedings relative to such Borrower or of any of its Subsidiaries or any of its or their properties is pending, or to the knowledge of such Borrower, threatened.

 

SECTION 4.18. Foreign Asset Control Regulations.

 

Neither the Advances nor the use of the proceeds of any thereof will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading With the Enemy Act”) or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) (the “Foreign Assets Control Regulations”) or any enabling legislation or executive order relating thereto (which for the avoidance of doubt shall include, but shall not be limited to (a) Executive Order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)) (the “Patriot Act”). Furthermore, neither such Borrower nor its Subsidiaries (i) is or will become a “blocked person” as described in the Executive Order, the Trading With the Enemy Act or the Foreign Assets Control Regulations or (ii) engages or will engage in any dealings or transactions, or be otherwise associated, with any such “blocked person”.

 

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 4.19. Compliance with Federal Agency Law and Regulations.

 

To the extent necessary to maintain their ability to originate and to service Mortgage Loans, the Borrowers are in compliance with all laws and regulations of any Federal Agency, except where such noncompliance would not have a materially adverse effect on their ability to originate and service Mortgage Loans.

 

SECTION 4.20. Servicing.

 

Schedule 5 is a true and complete list of the Mortgage Loans that the Borrowers are servicing under Servicing Agreements as of June 30, 2011. There have been no material changes since such date.  All of the Borrowers’ Servicing Agreements are in full force and effect, and are unencumbered by Liens other than Liens disclosed in Schedule 4. No event of default or event that, with notice or lapse of time or both, would become an event of default, exists under any of such Borrowers’ Servicing Agreements.

 

SECTION 4.21. Assumed Names.

 

Such Borrower does not originate Mortgage Loans or otherwise conduct business under any names other than its legal name and the assumed names set forth on Exhibit H.  Such Borrower has made all filings and taken all other action as may be required under the laws of any jurisdiction in which it originates Mortgage Loans or otherwise conducts business under any assumed name.  Such Borrower’s use of the assumed names set forth on Exhibit H does not conflict with any other Person’s legal rights to any such name, nor otherwise give rise to any liability by such Borrower to any other Person.  Such Borrower may amend Exhibit H to add or delete any assumed names used by such Borrower to conduct business.  An amendment to Exhibit H to add an assumed name is not effective until such Borrower has delivered to the Lender an assumed name certificate in the jurisdictions in which the assumed name is to be used, which must be satisfactory in form and content to the Lender, in its sole discretion.  In connection with any amendment to delete a name from Exhibit H, such Borrower represents and warrants that it has ceased using that assumed name in all jurisdictions.

 

	
SECTION 5.

	
COLLATERAL

 

SECTION 5.1. Grant of Security Interest.

 

As security for the full and punctual payment of all Advances now or hereafter outstanding, and the payment and performance of all other Obligations, now existing or hereafter arising from the Borrowers to the Lender, whether under this Agreement, the Credit Note, or the other Loan Documents, each Borrower hereby grants to the Lender a security interest in and continuing Lien upon the Collateral.

 

SECTION 5.2. Eligible Collateral.

 

SECTION 5.2.1.  Pledged Items shall constitute Eligible Collateral if (i) such Pledged Items meet the requirements set forth in Exhibit A-1 hereto, including the Warehouse Periods as provided on Exhibit A-1 and (ii) each Borrower is in compliance with the representations and warranties contained in Exhibit A-1.

 

 

 

 

 

  

  

  

 

 

 

SECTION 5.2.2.  Promptly, upon the receipt by the Lender of any Pledged Item, the Lender shall determine whether such Pledged Item qualifies as Eligible Collateral.

 

SECTION 5.2.3.  Whenever a Borrower or the Lender determines that any Pledged Item no longer constitutes Eligible Collateral, the Borrowers or the Lender shall notify the other of the identity of such Pledged Item. If the reason for such ineligibility can be remedied by the correction or completion of a document relating to such Pledged Item in the Lender’s possession, such Borrower shall be given the opportunity to correct or complete such document; otherwise, such Borrower shall promptly deliver to the Lender Eligible Collateral with an aggregate Collateral Value at least equal to the Collateral Shortfall or shall furnish the Lender with cash or Cash Equivalents in such amounts, and in accordance with the terms and conditions, as provided in Section 2.1.2.

 

SECTION 5.2.4.  Whenever the Lender delivers a document relating to a Pledged Item to a Borrower for correction or completion, such delivery shall be against a properly executed Borrower Trust Receipt, with instructions to such Borrower either to return the corrected document to the Lender within five (5) days after such delivery or repay the portion of the Advance allocable to such Pledged Item for release.

 

SECTION 5.3. Release of Collateral.

 

Subject to Section 5.9, upon the request of a Borrower delivered from time to time to the Lender, the Lender shall release the Pledged Items of such Borrower specified in such notice from the Lien of this Agreement, if, but only if, either (a) such Pledged Item is being sold pursuant to a Purchase Commitment with respect to such Pledged Item, or (b) at the time of such release, no Default shall have occurred and then be continuing and, after giving effect to such release, the aggregate outstanding amount of all Advances shall not be greater than the Borrowing Base at such time.

 

SECTION 5.4. Special Covenants.

 

SECTION 5.4.1.  Each Borrower warrants and will defend the right, title and interest of the Lender in and to all Pledged Items and all other items of Collateral against the claims and demands of all other Persons.

 

SECTION 5.4.2.  The Borrowers shall not amend, modify or waive any of the material terms and conditions of, or settle or compromise any claim in respect of, any Collateral or any rights related to any of the foregoing.  The Borrowers shall deliver the Collateral and other items related thereto to the Lender within the timeframes set forth on the applicable Exhibit B.

 

SECTION 5.4.3.  The Borrowers shall not sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge or otherwise encumber (except pursuant to this Agreement), any of the Collateral or any interest therein, except as provided in Section 5.3 with respect to releases of Pledged Items, or except in accordance with Purchase Commitments which constitute Collateral.

 

 

 

 

  

  

  

 

 

 

SECTION 5.4.4.  Each Borrower shall promptly notify the Lender of any default under any Pledged Mortgage which continues beyond any applicable notice or grace periods.

 

SECTION 5.4.5.  Each Borrower shall execute and deliver such further instruments and shall do and perform all matters and things reasonably necessary or expedient to be done or observed for the purpose of effectively creating, maintaining and preserving the security, indebtedness and benefits intended to be afforded by this Agreement.

 

SECTION 5.4.6.  Each Borrower shall hold all escrow funds collected in respect of Pledged Mortgages and Mortgage Loans which are the subject of Securities in trust and in accordance with all applicable laws, without commingling the same with any other funds not held in trust, and apply the same for the purposes for which such funds were collected.

 

SECTION 5.4.7.  Each Borrower shall observe and perform all of its obligations in connection with each Purchase Commitment related to any Pledged Item.

 

SECTION 5.4.8.  Each Borrower shall promptly notify the Lender if and when such Borrower receives any prepayment arising from or relating to any Pledged Mortgage and, hold the same in trust, in a segregated, identifiable interest-bearing trust account maintained at the Lender, as security for the Lender, until released in accordance with this Agreement or if an Event of Default has occurred and is continuing under this Agreement, then, upon notice from the Lender, immediately remit to the Lender in accordance with its instructions all such prepayments (and all interest and earnings thereon or with respect thereto) which are then in its possession or are thereafter received.

 

SECTION 5.4.9.  Each Borrower shall cooperate with the Lender and its representatives in any review or inspection of the Pledged Mortgages or the property subject to any Pledged Mortgage, and make available to such person any books and records relating to such Pledged Mortgages as well as the appropriate employees of such Borrower for the purpose of discussing the same, all at such time during business hours as may be reasonably requested in advance by the Lender. So long as no Event of Default has occurred and is continuing, the Lender’s costs in connection with such review and inspection shall not be borne by such Borrower. The Lender agrees not to disclose any information so obtained except to the Lender and the employees, agents, successors, assigns, attorneys, directors, professional advisors of the Lender, and except as may be required by applicable law, regulation or court order, and except in connection with the exercise of the rights and remedies hereunder.

 

SECTION 5.4.10.  Each Borrower shall not waive or otherwise modify any material term of, or fail to perform its obligations under, any Required Mortgage Document or Pledged Mortgage or release any security or obligor, or, through any activity or inactivity, cause any Pledged Mortgage which shall have been eligible for FHA insurance to become ineligible for FHA insurance or for purchase in accordance with the Purchase Commitment related to such Pledged Mortgage or the issuance of Securities in respect of such Pledged Mortgage, which Securities are the subject of the Investor Security Commitment related to such Pledged Mortgage.

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 5.4.11.  Each Borrower shall do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, all such other acts, instruments and transfers (including Assignments) as the Lender may reasonably request from time to time in order to create and maintain a perfected first priority security interest in the Collateral in favor of the Lender and to create, maintain and preserve the security and benefits intended to be afforded to the Lender under this Agreement, subject to no other Liens or any other agreement purporting to grant to any Person a security interest in the Collateral, other than Liens expressly permitted to exist pursuant to Section 8.8. Each Borrower hereby authorizes the Lender to file financing statements under the UCC to perfect its security interest hereunder and hereby ratifies any filings made prior to the date hereof.

 

SECTION 5.5. Collection Rights.

 

SECTION 5.5.1.  Unless an Event of Default shall have occurred and then be continuing, a Borrower shall be entitled to receive and collect directly all sums payable to such Borrower in respect of the Collateral except proceeds from the sale thereof which shall be deposited in an account designated by the Lender.

 

SECTION 5.5.2.  Upon the occurrence and during the continuance of an Event of Default, the Lender shall be entitled to receive and collect all sums payable to the Borrowers in respect of the Collateral and (i) the Lender may, at its option, in its own name or in the name of the Borrowers or otherwise, demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any of the Collateral, (ii) the Borrowers shall, if requested by the Lender, pay to the Lender at its address for notice set forth in Section 12.1 all amounts thereafter received by the Borrowers upon or in respect of any of the Collateral, and advise the Lender as to the source of such amounts, and (iii) all amounts so received and collected by the Lender shall be applied against the Advances, subject to the requirements of the Loan Documents pursuant to which such amounts were paid to the Borrowers.

 

SECTION 5.6. Termination.

 

If the Commitment shall have expired or been terminated pursuant to the express terms of this Agreement and no Advances or other amounts shall be outstanding hereunder, the Lender shall return all Pledged Items to the Borrower. The receipt of the Borrowers of the Pledged Items returned or delivered to the Borrowers (in the same conditions as originally received by Lender) pursuant to any provision of this Agreement shall be a complete and full acquittance for the Pledged Items so delivered, and the Lender shall thereafter be discharged from any liability or responsibility therefor.

 

SECTION 5.7. Collateral Transmittal Letter and Borrower Trust Receipt.

 

SECTION 5.7.1.  Whenever a Borrower shall pledge and deliver any Mortgage Loans to the Lender, such delivery shall be accompanied by a Collateral Transmittal Letter. Whenever the Lender shall deliver a document relating to a Pledged Mortgage to a Borrower for correction or completion, such delivery shall be against a properly executed Borrower Trust Receipt, with instructions to such Borrower to either return the corrected document to the Lender within five (5) Business Days after such delivery or such Pledged Mortgage shall be deemed not to be Eligible Collateral in accordance with this Agreement.

 

 

 

 

 

  

  

  

 

 

 

SECTION 5.7.2.  To the extent necessary to consummate a purchase under a Purchase Commitment, the Lender will send a Bailee Letter to Fannie Mae, with respect to DUS Program Loans, and to U.S. Bank with respect to FHA Mortgage Loans, using forms of Bailee Letters prescribed by Fannie Mae, FHA or Ginnie Mae, respectively. With respect to an Eligible Investor issuing a Purchase Commitment, to the extent necessary to consummate such transaction, and to the extent not covered by a custodial agreement between an Approved Custodian and the Lender, the Lender will send a Bailee Letter to a bailee designated by such Eligible Investor. Any such Bailee Letter shall be in form and substance reasonably satisfactory to such Borrower and the Lender.

 

SECTION 5.8. Security Interests in Mortgage Backed Securities.

 

SECTION 5.8.1.  Pledged Mortgages which are to be transferred to a pool custodian or to a Federal Agency in connection with the issuance of a Security shall be released from the Lender’s security interest only upon payment to the Lender in cash of the amount due the Lender in connection with such Pledged Mortgages or against the issuance of such Security. Each Borrower agrees that Pledged Mortgages will not be placed in any Mortgage Pool, unless such Pledged Mortgages have been released from the Lien of this Agreement or other arrangements, satisfactory to the Lender in its sole discretion exercised in good faith, are made for redemption of such Pledged Mortgages pledged hereunder.

 

SECTION 5.8.2.  The Lender has the exclusive right to possession of all Securities or, if Securities are issued in book-entry form or issued in certificated form and delivered to a clearing corporation (as that term is defined in the Uniform Commercial Code of New York) or its nominee, the Lender has the right to have the Securities registered in the name of a securities intermediary (as that term is defined in the Uniform Commercial Code of New York) in an account containing only customer securities and credited to an account of the Lender.  The Lender has no duty or obligation to deliver Securities to an Eligible Investor or to credit Securities to the account of an Eligible Investor or an Eligible Investor’s designee except against payment for those Securities. Each Borrower acknowledges that the Lender may enter into one or more standing arrangements with securities intermediaries with respect to Securities issued in book entry form or issued in certificated form and delivered to a clearing corporation or its designee, under which the Securities are registered in the name of the securities intermediary, and each Borrower agrees, upon request of the Lender, to execute and deliver to those securities intermediaries Each Borrower’s written concurrence in any such standing arrangements.

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 5.9. Delivery and Review of Collateral.

 

If no Default exists, upon delivery by a Borrower to the Lender of shipping instructions pursuant to the applicable Exhibit B, or if there is no applicable Exhibit B as may be approved by Lender, the Lender will deliver the Promissory Notes evidencing Pledged Mortgages or Securities, together with all related documents and pool documents previously received by the Lender under the requirements of the applicable Exhibit B, or if there is no applicable Exhibit B as may be approved by Lender, to the designated Eligible Investor or Approved Custodian or to another party designated by such Borrower and acceptable to the Lender in its sole discretion. Without in any way limiting the Lender’s rights hereunder, under the Credit Note, or under any other Loan Documents, the Lender shall examine and review any Collateral consisting of Mortgage Loans or Securities in accordance with the review procedure attached hereto as Exhibit F.

 

	
SECTION 6.

	
CONDITIONS PRECEDENT

 

The Advances may be made only if the following conditions precedent are met:

 

SECTION 6.1. Opinions of Counsel.

 

On the Effective Date, the Lender shall have received the legal opinion of Nixon Peabody LLP as counsel to the Borrowers, dated such date, addressed to and in form and substance reasonably satisfactory to the Lender and its counsel.

 

SECTION 6.2. No Default.

 

Additionally, on the date of each Advance, the Borrowers shall be in compliance with all the terms and provisions set forth herein on its part to be observed or performed; the representations and warranties of the Borrowers set forth in Section 4 and Exhibit A-1 hereof shall be true and correct in all material respects on such date as if made on and as of such date; the aggregate outstanding Advances shall be no greater than the lesser of the Borrowing Base or the Line of Credit Limit as of such date after giving effect to such Advance or such other limitation provided in Section 2.1; and no Default shall have occurred and be continuing on such date. On the date of each Advance, the Borrowers shall be deemed to have certified to the Lender as set forth in the first sentence of this Section 6.2.

 

SECTION 6.3. Supporting Documents.

 

On or prior to the Effective Date, the Borrowers shall deliver, or cause to be delivered, to the Lender:

 

SECTION 6.3.1.  The duly executed Credit Note payable to the order of the Lender.

 

SECTION 6.3.2. The duly executed Placement Fee Agreement dated of even date herewith between the Borrowers and the Lender in form and substance acceptable to the Lender.

 

 

 

 

 

  

  

  

 

 

 

SECTION 6.3.3.  A certificate of the Secretary of each Borrower dated such date and certifying as to the certificate of incorporation, by-laws and other organizational documents of each Borrower, the incumbency and signatures of officers of each Borrower executing this Agreement, the Credit Note and the other Loan Documents or otherwise acting on behalf of each Borrower hereunder and the resolutions authorizing the transactions contemplated by the Loan Documents.

 

SECTION 6.3.4.  Evidence of insurance coverage required by Section 7.1.2 and copies of such documentation concerning each such Borrower’s status as an Approved Lender as the Lender shall request.

 

SECTION 6.3.5.  Certified copies of each Borrowers’ certificate of incorporation, with all amendments thereto, and certificates of good standing dated no earlier than thirty (30) days prior to the date of this Agreement.

 

SECTION 6.3.6.  A certificate of a Senior Officer of each Borrower (i) that, subject to exceptions acceptable to the Lender, all representations and warranties contained herein are true as of the Effective Date, (ii) that, subject to exceptions acceptable to the Lender, there has been no material adverse change in each Borrower’s financial condition from the financial statements submitted to the Lender pursuant to Section 4.6, and such financial statements fairly present in all material respects the financial condition of each Borrower in accordance with GAAP as of the date thereof, (iii) that each Borrower is in compliance with the covenants set forth in this Agreement, (iv) that, as of the Effective Date, there have occurred no Defaults under this Agreement that have not been cured or waived, and (v) certifying as to the identity of the holders of the equity interests in each Borrower.

 

SECTION 6.3.7.  Federal and state tax lien, litigation and bankruptcy searches with respect to each Borrower, which searches do not disclose the existence of any Lien in favor of any taxing authority against each Borrower.

 

SECTION 6.3.8.  UCC-11 Searches with respect to each Borrower from the offices of the Delaware Secretary of State, which searches do not disclose the existence of any Liens against the assets of each Borrower other than Liens permitted under Section 8.8.

 

SECTION 6.3.9.  If not previously opened and established, the execution of all required authorizing resolutions and other forms to establish the Operating Account and all other accounts required pursuant to Section 7.12 at the Lender.

 

SECTION 6.3.10.  Such financial statements and other information and projections as the Lender shall have reasonably requested.

 

SECTION 6.3.11.  Such other documents as the Lender reasonably may require, and evidence satisfactory to the Lender of the occurrence of any further conditions precedent to the closing of this Agreement established hereby.

 

SECTION 6.3.12.  Payment of any fees or expenses due upon the Effective Date.

 

 

 

 

 

  

  

  

 

 

 

SECTION 6.4. Approvals, Etc.

 

The Lender shall be satisfied that (i) each Borrower has obtained all material and appropriate authorizations and approvals of all Governmental Authorities (including, without limitation, any approvals required by any of Fannie Mae, Freddie Mac, FHA, Ginnie Mae, HUD and USDA), required for the due execution, delivery and performance by each Borrower of each of the Loan Documents and for the perfection of or the exercise by Lender of its rights and remedies under the Loan Documents, and (ii) the Loan and all transactions contemplated hereby, shall be in material compliance with, and each Borrower shall have obtained all material and appropriate approvals pertaining to, all applicable laws, rules, regulations and orders, including, without limitation, all governmental, environmental, ERISA retiree health benefits, workers’ compensation and other requirements, regulations and laws and shall not contravene any charter, by-law, debt instrument or other material contractual obligation of each Borrower and its Subsidiaries.

 

SECTION 6.5. Redemption

 

The redemption of the Centerline Series A Convertible Reinvestment Act Preferred shares owned by the Lender shall have closed upon terms mutually agreed upon by the parties.

 

SECTION 6.6. Each Advance.

 

The obligation of the Lender to make any Advance under this Agreement is subject to the satisfaction, in the judgment of the Lender exercised in good faith, as of the date of each such Advance, of the following additional conditions precedent:

 

SECTION 6.6.1.  The Requesting Borrower shall deliver to the Lender an Advance Request and the documents required by the appropriate Exhibit B and all other required documentation and shall satisfy the procedures set forth in Section 2.5 in each case in accordance with the terms hereof. All items delivered to the Lender shall be reasonably satisfactory to the Lender in form and content and the Lender may reject any item that does not satisfy the requirements of this Agreement or of any related Purchase Commitment.

 

SECTION 6.6.2.  No Default shall exist and be continuing under this Agreement or the other Loan Documents.

 

SECTION 6.6.3.  The representations and warranties of the Borrowers contained in Section 4 and Exhibit A-1 and in the other Loan Documents must be accurate and complete in all material respects as if made on and as of the date of each Advance.  Requesting an Advance shall be an affirmation of all of the representations, warranties and Schedules contained in or related to this Agreement, as true and correct unless the Requesting Borrower submits modified Schedules to this Agreement to the Lender with such Advance Request.

 

SECTION 6.6.4.  There shall not have been any material adverse change in the financial condition, business, affairs of the Borrowers, CCG or CHC since the date of this Agreement which in the Lender’s good faith judgment may jeopardize in a material manner the ability of the Borrowers to perform fully their obligations under each applicable Loan Document.

 

 

 

 

 

  

  

  

 

 

 

SECTION 6.6.5.  Notwithstanding anything contained in this Agreement to the contrary, (i) if Fannie Mae suffers a Rating Downgrade, during such time as Fannie Mae’s Standard & Poor’s or Moody’s senior unsecured rating is less than “A”, the Lender shall not be obligated to make Advances to the Borrowers the proceeds of which will be used by the Borrowers to fund DUS Program Loans; (ii) if the United States suffers a Rating Downgrade, during such time as the United States Standard & Poor’s or Moody’s Local Long Term rating is less than “A”, the Lender shall not be obligated to make Advances to the Borrowers the proceeds of which will be used by the Borrowers to fund FHA Construction Mortgage Loans or FHA Permanent Mortgage Loans; or (iii) if Freddie Mac suffers a Rating Downgrade, during such time as Freddie Mac’s Standard & Poor’s or Moody’s senior unsecured rating is less than “A”, the Lender shall not be obligated to make Advances to the Borrowers the proceeds of which will be used by the Borrowers to fund Freddie Mac Program Loans; provided, however, that during such time as a Rating Downgrade has occurred and is continuing, the Lender may make such Advances to the Borrowers in their sole and absolute discretion.  The making of one or more Advances by any Lender during the existence of a Rating Downgrade shall not obligate any other Lender to make Advances during the existence of a Rating Downgrade.

 

SECTION 6.6.6. The Lender shall not be required to make more than fifteen (15) Advances in any calendar month.

 

SECTION 6.6.7.The Lender shall have received and approved such other documents, and certificates as the Lender reasonably may request, in form and substance reasonably satisfactory to the Lender.

 

SECTION 6.7. Force Majeure.

 

Notwithstanding the Borrowers’ satisfaction of the conditions set forth in this Agreement, the Lender have no obligation to make an Advance if the Lender is prevented from obtaining the funds necessary to make an Advance, or is otherwise prevented from making an Advance as a result of any fire or other casualty, failure of power, strike, lockout or other labor trouble, banking moratorium, embargo, sabotage, confiscation, condemnation, riot, civil disturbance, insurrection, act of terrorism, war or other activity of armed forces, act of God or other similar reason beyond the control of Lender.  The Lender will make the requested Advance as soon as reasonably possible following the occurrence of such an event (provided that all applicable terms and conditions relating to such Advance continue to be satisfied).

 

	
SECTION 7.

	
AFFIRMATIVE COVENANTS

 

Each Borrower covenants and agrees with the Lender that, so long as this Agreement shall remain in effect or any Obligations are outstanding under the Credit Note or this Agreement, each Borrower shall:

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 7.1. Payment of Debts, Taxes, Etc.; Maintenance of Insurance.

 

SECTION 7.1.1.  Pay all debts and perform all obligations, promptly and in accordance with the terms thereof and pay and discharge, all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or upon any properties belonging to it, prior to the date on which penalties attach thereto, and all lawful claims, which, if unpaid, might become a Lien or charge upon any properties of such Borrower (providedthat such Borrower shall have the right to contest in good faith any such obligation without paying the same provided further that such Borrower has established adequate reserves therefor), except in each case to the extent any such nonpayment would not constitute a Default hereunder.

 

SECTION 7.1.2.  Maintain insurance on its properties and other insurance in amounts and types and with provisions and insurers as shall be reasonably satisfactory to the Lender. Such Borrower will at all times furnish to the Lender copies of its current Mortgage Bankers Blanket Bond and of its insurance policies containing errors and omissions coverage or mortgage impairment coverage, and each such Mortgage Bankers Blanket Bonds and policies, shall, to the extent possible, provide that it is not cancelable without thirty (30) days prior written notice to the Lender and shall name the Lender as a named insured, loss payee or additional insured, as applicable.

 

SECTION 7.2. Preservation of Legal Existence.

 

Preserve and maintain, its legal existence, rights, franchises and privileges in the jurisdiction of its organization, and qualify and remain qualified as a foreign corporation in each jurisdiction in which the failure to be so qualified would reasonably be expected to have a material adverse effect on its business including its financial condition, properties and results of operations.

 

SECTION 7.3. Compliance with Laws, Etc.

 

Comply with the requirements of all applicable laws, rules, regulations and orders of any governmental authority, except for non-compliance with which would not, singly or in the aggregate, have a material adverse effect on its business or credit (including all licensing requirements or other legal requirements applicable to mortgage companies originating Mortgage Loans in every state in which such Borrower originates Mortgage Loans), unless the same shall be contested by such Borrower in good faith and by appropriate proceedings and such contest shall operate to stay the material adverse effect of any such non-compliance.

 

SECTION 7.4. Requested Information; Consult with Auditors.

 

SECTION 7.4.1.  Subject to the terms of Section 5.4.9, at any reasonable time and from time to time, on reasonable prior notice, furnished by the Lender or its agents or representatives during normal business hours thereof, permit such agents or representatives to examine and make copies of, the records and books of account of, and visit the properties of, such Borrower and to discuss the affairs, finances and accounts of such Borrower with any of its officers. During such period when an Event of Default has occurred and is continuing, the Lender’s costs in connection with such review and inspection shall be borne by such Borrower (at all other times, such costs shall be borne by the Lender). The Lender agrees not to disclose any information so obtained except to the Lender and the employees, agents, successors, assigns, attorneys, directors, professional advisors of the Lender, and except as may be required by applicable law, regulation or court order and except in connection with the exercise of the Lender’s rights and remedies hereunder.

 

 

 

 

 

  

  

  

 

 

 

SECTION 7.4.2.  Subject to the terms of Section 5.4.9, each Borrower authorizes the Lender, (i) upon reasonable request at any time, during normal business hours for any reason prior to a Default, and (ii) at any time after a Default and during the continuation of any such Default to discuss such Borrower’s financial statements referred to in Section 7.7 with the auditors who prepared such statements or other independent auditors employed by such Borrower and authorize and request any representative of such auditor to participate in such discussions, an officer or representative of such Borrower to be present on such occasions if such Borrower so desires.

 

SECTION 7.5. Keeping of Records and Books of Account.

 

Keep or cause to be kept adequate records and books of account in which complete entries will be made in accordance with GAAP (except for changes concurred with by such Borrower’s independent auditors and the Lender) reflecting all financial transactions of such Borrower and any Subsidiary.

 

SECTION 7.6. Maintenance of Approvals, Filings and Registrations.

 

At all times maintain in effect, renew and comply with all the terms and conditions of all contracts, licenses (including all licensing requirements or other legal requirements applicable to mortgage companies originating Mortgage Loans in every state in which the Borrowers originate Mortgage Loans), approvals and authorizations as may be necessary under any applicable law or regulation for the execution, delivery and performance of this Agreement and the Credit Note and to make this Agreement and such other documents legal, valid, binding and enforceable.

 

SECTION 7.7. Reporting Requirements.  Furnish to the Lender:

 

SECTION 7.7.1.  As soon as possible after a Borrower has actual knowledge (i) of the occurrence of any Default, or (ii) that any of the representations and warranties contained in Section 4 or Exhibit A-1 hereof have ceased to be true and correct in any material respect at any time since the last Advance hereunder (or, if no Advance has taken place, the execution and delivery of this Agreement), telephone advice confirmed in writing within three (3) Business Days by a statement of a Senior Officer of such Borrower setting forth the details thereof and the action which such Borrower proposes to take with respect thereto.

 

SECTION 7.7.2. As soon as available and in any event within forty-five (45) days after the close of each fiscal quarter, (i) management prepared consolidated and consolidating statements of income and statements of cash flow of the Borrowers and their respective consolidated Subsidiaries for the period from the beginning of such fiscal year to the end of such fiscal quarter and (ii) the related management prepared consolidated and consolidating balance sheet of the Borrowers and their respective consolidated Subsidiaries as at the end of such fiscal quarter, each in reasonable detail, and certified by the chief financial officers of the Borrowers, respectively, that, to the best of his or her knowledge, such financial statements were prepared in accordance with GAAP and present fairly the financial condition and the results of operations for the period covered, subject, however, to year-end audit adjustments (none of which, to the best of such officers’ knowledge, will be material individually or in the aggregate) and the omission of footnotes.

 

 

 

 

  

  

  

 

 

 

 

SECTION 7.7.3. As soon as available and in any event within one hundred twenty (120) days after the close of each of its fiscal years, (i) consolidated and consolidating statements of income and changes in its stockholders’ equity and cash flows of the Borrowers and their respective consolidated Subsidiaries for such year and (ii) the related consolidated and consolidating balance sheet of the Borrowers and their respective Subsidiaries as at the end of such year setting forth in each in comparative form the corresponding figures for the preceding fiscal year, all in reasonable detail, prepared in accordance with GAAP and with all notes, and accompanied by:

 

(i)           a report and opinion of a firm of independent certified public accountants of recognized standing selected by the Borrowers and reasonably acceptable to the Lender, stating that such accountants have conducted audits of such financial statements in accordance with generally accepted auditing standards and that, in their opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Borrowers and their respective consolidated Subsidiaries as of the date thereof and the results of its operations and cash flows for the periods covered thereby in conformity with GAAP;

 

(ii)           a certificate signed by the chief financial officers of the Borrowers stating that said financial statements fairly present its financial condition and results of operations (and, if applicable, those of their respective Subsidiaries) as at the end of, and for, such year; and

 

(iii)           such other information related to such annual reports as the Lender may from time to time reasonably request.

 

SECTION 7.7.4.  Simultaneously with the delivery of each set of financial statements referred to in Sections 7.7.2 and 7.7.3, a certificate of a Senior Officer of the Borrowers substantially in the form of Exhibit G hereto (the “Borrower Compliance Certificate”) (a) setting forth in reasonable detail the calculations required to establish whether the Borrowers were in compliance with the requirements of Sections 8.2, 8.3, 8.4, 8.5, 8.13 and 8.14.2, inclusive on the date of such financial statements, and (b) stating whether there exists on the date of such certificate any Default and, if any Default then exists, setting forth the details thereof and the action which the Borrowers are taking or propose to take with respect thereto.

 

 

 

 

 

  

  

  

 

 

 

SECTION 7.7.5.  Promptly after the commencement thereof, notice of (i) any proceeding instituted by or against any Borrower in any federal or state court or before any commission or other regulatory body (federal, state or local, domestic or foreign), or

 

any such action or proceeding threatened against such Borrower in writing, which, if adversely determined, would have a material adverse effect upon the business, assets or conditions, financial or otherwise, of such Borrower, and (ii) any other action, event or condition of any nature which is reasonably likely to lead to or result in a material adverse effect upon the business, assets or condition, financial or otherwise, of such Borrower or which, with or without notice or lapse of time or both, would constitute a default by such Borrower under any other material contract, instrument or agreement to which such Borrower is a party or by which such Borrower, its properties or assets may be bound or subject.

 

SECTION 7.7.6.   Promptly after the filing thereof, copies of all regular periodic, financial and other reports, if any, which the Borrowers shall file with the Securities and Exchange Commission or any governmental agency successor thereto, all federal  income tax returns and state income tax returns (if requested by the Lender).

 

SECTION 7.7.7.  Any renewals, refinancings, replacements, and/or extensions of any Debt described on Schedule 3 annexed hereto, and the establishment of any Warehousing Debt facilities, after the date hereof, such notices to include, as applicable, the principal amount thereof and a general description of the collateral therefor.

 

SECTION 7.7.8.  Such other information, financial or otherwise, respecting the Collateral as the Lender may from time to time reasonably request.

 

SECTION 7.7.9.  As soon as possible, and in any event within thirty (30) days after any Borrower knows or has reason to know that any of the events or conditions enumerated below with respect to any Plan have occurred or exist, statements signed by a Senior Officer of such Borrower setting forth details respecting such event or condition and the action, if any, which such Borrower or, to the best knowledge of such Borrower, any ERISA Affiliate proposes to take with respect thereto; provided, however, that if such event or condition is required to be reported or notice thereof given to PBGC, such statement, together with a copy of the relevant report or notice to PBGC, shall be furnished to the Lender within ten (10) days after it is reported or notice thereof given to PBGC:

 

(i)           any Reportable Event, with respect to a Plan, as to which the PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event (provided that a failure to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA shall be a Reportable Event regardless of the issuance of any waivers in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code);

 

(ii)           the filing under Section 4041 of ERISA of a notice of intent to terminate any Plan or the termination of any Plan;

 

 

 

 

  

  

  

 

 

 

(iii)           the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; or

 

(iv)           the complete or partial withdrawal (as such terms are defined under Sections 4203 and 4205, respectively, of ERISA) by such Borrower, any Subsidiary or any ERISA Affiliate from a Plan, or the receipt by such Borrower, any Subsidiary or any ERISA Affiliate of notice from a Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA, if such withdrawal, reorganization, insolvency or termination has resulted or may reasonably be expected to result in any liability of such Borrower, any Subsidiary or any ERISA Affiliate to the PBGC in connection with such Plan or to such Plan.

 

SECTION 7.7.10.  Promptly after the request of the Lender, copies of each annual report filed pursuant to Section 104 of ERISA with respect to each Plan (including, to the extent required by Section 104 of ERISA, the related financial and actuarial statements and opinions and other supporting statements, certifications, schedules and information referred to in Section 103 of ERISA) and each annual report filed with respect to each Plan under Section 4065 of ERISA.

 

SECTION 7.7.11. As soon as available and in any event within sixty (60) days after the end of each calendar quarter, a consolidated report (a “Servicing Portfolio Report”) as of the end of the calendar quarter, as to all Mortgage Loans the servicing rights to which are owned by the Borrowers (specified by investor type, recourse and non-recourse) regardless of whether the Mortgage Loans are Collateral.  The Servicing Portfolio Report must indicate which Mortgage Loans (i) are current and in good standing, (ii) are more than thirty (30), sixty (60) or ninety (90) days past due, (iii) are the subject of pending bankruptcy or foreclosure proceedings, or (iv) have been converted (through foreclosure or other proceedings in lieu of foreclosure) into real estate owned by the Borrowers.

 

SECTION 7.7.12.    As soon as available and in any event within forty-five (45) days after the end of each calendar quarter, a consolidated loan production report as of the end of that calendar quarter, presenting the total dollar volume and the number of loans (including, without limitation, Mortgage Loans) originated and closed or purchased during that calendar quarter by the Borrowers and for the calendar year-to-date, specified by property type and loan type.

 

SECTION 7.7.13. As soon as available but in any event within thirty (30) days after request by the Lender, a projected income statement of the Borrowers for the then and next fiscal years, which shall be in such form and detail, and including such additional information, as the Lender may reasonably request.

 

SECTION 7.7.14.  Promptly upon receipt, a copy of any notice from any Federal Agency or any private mortgage insurer to the effect that it has withdrawn, or is contemplating withdrawing, its approval of the Borrowers, as applicable, as a HUD-MAP-Approved Lender, Ginnie Mae-Approved Lender, Fannie Mae-Approved Lender, Freddie Mac-Approved Lender or any Purchase Commitment.

 

 

 

 

 

  

  

  

 

 

 

 

SECTION 7.7.15. By no later than the 15th day following the end of each calendar quarter (or, if produced more frequently, within fifteen (15) days after such production), a

 

copy of Fannie Mae’s DUS watch list for mortgage loans serviced by CMC, including, without limitation, information on loans that have matured or are in default, and special servicing action plans related to the same.

 

SECTION 7.7.16. By no later than the 15th day following the end of each calendar quarter (or, if produced more frequently, within fifteen (15) days after such production), a copy of Freddie Mac’s Risk Share watch list for mortgage loans serviced by CMP, including, without limitation, information on loans that have matured or are in default.

 

SECTION 7.7.17. By no later than the 15th day following the end of each calendar quarter, a listing of all loss payments made by either of the Borrowers with respect to a Mortgage Loan made under the Fannie Mae DUS Program or with respect to a Freddie Mac Program Loan.

 

SECTION 7.7.18.  By no later than thirty (30) days after the occurrence of any of the following, written notice to Lender of each of the following:

 

(i)           any amendment to any Borrower’s contract with Fannie Mae or Freddie Mac, the reserve agreement, loss sharing agreements relating to DUS Program Loans, Freddie Mac Program Loans or Purchase Commitments under DUS Program Loans or Freddie Mac Program Loans, setting forth the substance of any such amendment and attaching a copy thereof;

 

(ii)           any change in a letter of credit, or issuance of an additional letter of credit, in favor of Fannie Mae or Freddie Mac such that Schedule 6 is no longer a true and complete list of all letters of credit issued in favor of Fannie Mae or Freddie Mac (and the principal amounts thereof).

 

SECTION 7.7.19.  If requested by the Lender, and if completed by Fannie Mae, Freddie Mac, Ginnie Mae or FHA, a written statement of the results of Fannie Mae’s, Freddie Mac’s Ginnie Mae’s or FHA’s initial review of each DUS Program Loan, Freddie Mac Program Loan, FHA Mortgage Loan or Ginnie Mae Security and the loss sharing level assigned to such DUS Program Loan, Freddie Mac Program Loan, FHA Mortgage Loan or Ginnie Mae Security including copies of relevant Fannie Mae, Freddie Mac, Ginnie Mae or FHA documents giving the results of the initial review and loss sharing level.

 

SECTION 7.7.20.  Such other information respecting the business, properties or the condition or operation of such Borrower, financial or otherwise, as the Lender may from time to time reasonably request.

 

 

 

 

 

  

  

  

 

 

 

SECTION 7.7.21.  Promptly after receipt, copies of any default or acceleration notices with respect to any Debt of such Borrower to any Person other than the Lender in excess of $100,000.

 

SECTION 7.8. Indemnification.

 

SECTION 7.8.1.  Pay, and protect, indemnify and save harmless the Lender and, in their capacity as such, their officers, directors, shareholders, controlling persons, employees, agents, representatives and servants from and against all liabilities, losses, claims, damages, penalties, causes of action, suits, costs and expenses (including reasonable attorneys’ fees and expenses for which the Lender shall provide an accounting) or judgments of any nature arising from the default of the Borrowers in the performance of its respective agreements, rights or obligations contained in this Agreement, the Credit Note or other Loan Documents.

 

SECTION 7.8.2.  Indemnify and hold the Lender harmless from and against any loss, including reasonable attorneys’ fees and costs, attributable to the failure of the title insurance company, agent or approved attorney to comply with the disbursement or instruction letter or letters of the Borrowers or of the Lender relating to any Mortgage Loan. The Lender shall have the right to pre-approve the closing instructions of the Borrowers to the title insurance company, agent or attorney with respect to the transmittal of Collateral in any case where the Mortgage Loan to be created at settlement is intended to be Eligible Collateral pursuant hereto.

 

SECTION 7.8.3.  If any action, suit or proceeding arising from the foregoing provisions is brought against the Lender or any other person indemnified pursuant to this Section 7.8, the Borrowers will, if within a reasonable time requested in writing to do so, and, at its expense, resist and defend such action, suit or proceeding, or cause the same to be resisted and defended by counsel designated by the Borrowers (which counsel shall be reasonably satisfactory to the party being indemnified). The obligations of the Borrowers under this Section 7.8 shall survive any termination of this Agreement.

 

Notwithstanding the foregoing to the contrary, the foregoing indemnification shall not, as to any person seeking indemnification (as “Indemnitee”), be available to the extent that such losses, claims, damages, liabilities or related expenses (x) resulted from gross negligence or willful misconduct of such Indemnitee, or (y) result from a claim brought by the Borrowers against an Indemnitee for breach of such Indemnitee’s obligations hereunder or under any other Loan Document.

 

SECTION 7.9. Pledged Mortgages.

 

Perform all of its obligations in connection with each Purchase Commitment related to any Pledged Mortgages.

 

SECTION 7.10. Further Assurance.

 

As from time to time specified by counsel for the Lender, at the cost and expense of the Borrowers, execute and deliver to the Lender all such documents and instruments and do all such other acts and things as may be reasonably required to enable the Lender to exercise and enforce their rights under this Agreement and to realize thereon, and as may be reasonably necessary to validate, preserve and protect the position of the Lender under this Agreement.

 

 

 

 

 

  

  

  

 

 

 

 

SECTION 7.11. Appraisal of Servicing Agreements.

 

Provide to the Lender appraisals of the Servicing Agreements prepared by The Prestwick Mortgage Group or any other appraiser which the Lender has approved, in writing (which approval shall not be unreasonably withheld or delayed), at least annually, no later than forty-five (45) days after the end of each calendar year as of the calendar year most recently ended, or more frequently to the extent obtained by such Borrower, all at such Borrower’s sole cost and expense.

 

SECTION 7.12. Bank Accounts.

 

To permit the Lender to monitor the financial performance of the Borrowers, each of the Borrowers shall maintain and fund the Operating Account and escrow depository accounts with the Lender.

 

SECTION 7.13. Minimum Deposits.

 

To maintain average deposit balances of the Borrowers and their Affiliates held at the Lender of not less than Thirty Million Dollars ($30,000,000) in the aggregate (the “Deposit Level Target”), provided that the sole remedy of the Lender for the Borrowers’ failure to satisfy the Minimum Deposit Target shall be an increase in the Applicable Interest Rate Spread (as defined in the Credit Note) and the Applicable Nonusage Rate as provided herein.

 

	
SECTION 8.

	
NEGATIVE COVENANTS

 

Each Borrower covenants and agrees with the Lender that so long as this Agreement shall remain in effect or any amounts are outstanding under the Credit Note or this Agreement, such Borrower will not, directly or indirectly:

 

SECTION 8.1. Restrictions on Fundamental Changes.

 

(i)           Consolidate with, merge with or into, or enter into any analogous reorganization or transaction with any Person.

 

(ii)           Amend or otherwise modify such Borrower’s certificate of incorporation, by-laws or other organizational documents that would result in (a) a material modification of, or fundamental change in, the corporate structure, ownership, management and/or business operations of such Borrower or (b) a violation of any other provision of this Agreement.

 

(iii)           Liquidate, wind up or dissolve (or suffer any liquidation or dissolution).

 

(iv)           Cease actively to engage in the business of originating, and servicing Mortgage Loans or make any other material change in the nature or scope of the business in which such Borrower engages as of the date of this Agreement.

 

 

 

 

 

  

  

  

 

 

 

(v)           Sell, assign, lease, convey, transfer or otherwise dispose of (whether in one transaction or a series of transactions) all or any material part of such Borrower’s business or assets, whether now owned or acquired after the Effective Date, other than, in the ordinary

 

course of business and to the extent not otherwise prohibited by this Agreement, sales of (a) Mortgage Loans, and (b) Securities and Servicing Agreements solely pursuant to Freddie Mac requirements.

 

(vi)           Acquire by purchase or in any other transaction all or substantially all of the business or property of, or all or substantially all of the stock or other ownership interests of, any Person, except in connection with the collection or restructuring of any loan made by such Borrower in the ordinary course of its business.

 

SECTION 8.2.  Minimum Adjusted Net Worth.

 

The Borrowers shall not permit the Adjusted Net Worth of CMC (and its Subsidiaries, on a consolidated basis) to be less than the greater of (x) $50,000,000.00 or (y) an amount sufficient to satisfy the requirements from time to time of both Fannie Mae and Freddie Mac, to be tested as of the date of this Agreement and on the last day of each calendar quarter thereafter.

 

The Borrowers shall not permit the Adjusted Net Worth of CMP (and its Subsidiaries, on a consolidated basis) to be less than the greater of (x) $7,000,000.00 or (y) an amount sufficient to satisfy the requirements from time to time to participate in any applicable Multi-Family Property program, to be tested as of the date of this Agreement and on the last day of each calendar quarter thereafter.

 

SECTION 8.3. Servicing Contracts.

 

The Borrowers shall not at any time permit the Eligible Servicing Portfolio to have an outstanding principal balance of less than Seven Billion Dollars ($7,000,000,000).

 

SECTION 8.4. Debt Service Coverage Ratio.

 

The Borrowers (on a consolidated basis, with their respective Subsidiaries) shall not permit the Debt Service Coverage Ratio to be less than 2.00 to 1.00, tested as of the last day of each of the Borrowers’ fiscal quarters for the period of four consecutive fiscal quarters then ending.

 

SECTION 8.5. Minimum Liquidity.

 

Permit the aggregate Available Cash of the Borrowers, at any time, to be less than the greater of (i) $3,000,000 in the aggregate or (ii) the minimum liquidity required of the Borrowers under their agreements with and in accordance with a program requirement of Fannie Mae, Freddie Mac, FHA, Ginnie Mae and HUD, as applicable (such greater amount the “Borrower Liquidity Requirement”). The Borrowers’ calculation of Available Cash shall include a statement of the minimum liquidity required of the Borrowers under their agreements and in accordance with a program requirement of Fannie Mae, Freddie Mac, FHA, Ginnie Mae and HUD, as applicable, and the calculation of compliance with this Section 8.5 shall be based on such requirement if it exceeds $3,000,000 in the aggregate.

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 8.6. Debt.

 

Incur or suffer to exist, any Debt, without the prior consent of the Lender, other than: (a) the Debt created under this Agreement and the other Loan Documents; (b) trade indebtedness incurred in the ordinary course of business and in accordance with usual credit terms; (c) Debt described on Schedule 3 (excluding other Debt described in clause (a), (b), (c), (d), (e) and (f) of this paragraph) hereto; (d) contingent Debt for Guaranties permitted under Section 8.7; (e) Warehousing Debt; and (f) Debt due to any Affiliate of the Borrowers and subordinated to the Obligations under this Agreement, which subordination shall be pursuant to a subordination agreement approved by Lender.

 

SECTION 8.7. Guaranties.

 

Enter into, directly or indirectly, any Guaranties, including incurring any additional liability to any Eligible Investor or other party under a Servicing Agreement or Subservicing Agreement on account of any recourse or co-insurance servicing obligations, except (i) such Borrower’s responsibility for certain credit losses with respect to DUS Program Loans originated or sold by such Borrower, (ii) such Borrower’s responsibility for certain credit losses with respect to Freddie Mac’s Targeted Affordable Housing Program and (iii) such Borrower’s responsibility for certain credit losses and/or to repurchase a Mortgage Loan on account of a breach of such Borrower’s representations and warranties made in connection with origination of such Mortgage Loan.

 

SECTION 8.8. Liens.

 

Permit any Lien to exist on any of its property or assets (including such Borrower’s rights under any contracts relating to mortgage sales and under any Servicing Agreements) other than:

 

(i)           Liens incurred or deposits made in the ordinary course of such Borrower’s business to secure the performance of bids, sales, leases, statutory obligations, surety, appeal and performance bonds, and other similar obligations incurred in the ordinary course of such Borrower’s business and not incurred in connection with borrowing money or obtaining credit and which, in the opinion of the Lender, does not in the aggregate materially detract from the value of such Borrower’s property or impair the use thereof;

 

(ii)           Liens for property taxes not delinquent;

 

(iii)           Liens arising under this Agreement, under any other Loan Documents, or under Warehousing Debt;

 

(iv)           Liens on assets not constituting Collateral hereunder securing Debt permitted under Section 8.6; and

 

(v)           Liens described on Schedule 4.

 

 

 

 

  

  

  

 

 

 

 

SECTION 8.9. Borrowing Base.

 

Fail to cure any Collateral Shortfall beyond the time for remedying such Collateral Shortfall as expressly provided in Section 2.1.2.

 

SECTION 8.10. Conduct of Business.

 

Fail to maintain its legal existence, licenses (including all licensing requirements or other legal requirements applicable to mortgage companies originating Mortgage Loans in every state in which the Borrowers originate Mortgage Loans), franchises and privileges or cease to carry on its business as now conducted, or, without the approval of the Lender, significantly change the scope or nature of its business.

 

SECTION 8.11. Federal Agency Approvals.

 

Cause, permit or suffer the withdrawal of any approval to sell or service Mortgage Loans by any Federal Agency.

 

SECTION 8.12. Pledged Mortgages.

 

Waive or otherwise modify any material term of any Pledged Mortgage or release any security or obligor, or, through any activity or inactivity, cause any Pledged Mortgage to become ineligible for FHA insurance, or private mortgage insurance, as the case may be, or for purchase in accordance with the Purchase Commitment related to such Pledged Mortgage or the issuance of Securities in respect of such Pledged Mortgage, which Securities are the subject of the Investor Security Commitment related to such Mortgage.

 

SECTION 8.13. Distributions.

 

Make any Distributions at any time (a) that would cause a Default to occur; or (b) following a Default hereunder; or (c) when such Borrower does not maintain the minimum Borrower Liquidity Requirement or satisfy the other requirements of this Section 8.

 

SECTION 8.14. Servicing.

 

SECTION 8.14.1.  Except for such Borrower’s responsibility for certain credit losses and/or to repurchase a Mortgage Loan on account of a breach of such Borrower’s representations and warranties made in connection with the origination or sale of such Mortgage Loan, sell Mortgage Loans to any person with recourse, co-insurance or any other contingent liability to such Borrower, without the Lender’s prior written consent, which may be withheld or granted in the Lender’s sole discretion exercised in good faith.

 

SECTION 8.14.2.  At any time permit the aggregate principal balance of all Recourse Delinquent Mortgage Loans to exceed two percent (2%) of the aggregate principal balance of all Recourse Mortgage Loans.

 

SECTION 8.14.3.  At any time, acquire Servicing Agreements or Subservicing Agreements that would cause such Borrower to incur Debt not permitted hereunder or use its Available Cash that would on a pro forma basis cause such Borrower to violate the Borrower Liquidity Requirement, unless such Borrower shall have obtained the prior written consent of the Lender.

 

 

 

 

 

  

  

  

 

 

 

SECTION 8.15. No Margin Loans.

 

Cause, permit or suffer any portion of the proceeds of the Advances to be used, in whole or in part, for the purpose of purchasing or carrying any “margin stock” as such term is defined in Regulation U.

 

SECTION 8.16. Change of Control.

 

Without the prior written consent of the Lender, permit or suffer to occur a Change of Control.  For purposes hereof, “Change of Control” means the occurrence of any of the following events:

 

(i)           the occurrence of any events or circumstances such that any of CMC, CMP or CCG, either directly or indirectly, shall no longer be controlled by CHC;

 

(ii)           as to CHC: (a) any merger or consolidation of CHC with or into any Person or any sale, transfer or other conveyance, whether direct or indirect, of all or substantially all of the assets of CHC, on a consolidated basis, in one transaction or a series of related transactions, if, immediately after giving effect to such transaction, any Person or group of Persons (within the meaning of Section 13 or 14 of the Securities Exchange Act) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by the SEC under the Securities Exchange Act) of the common shares representing a majority of the total voting power on a fully diluted basis of the aggregate outstanding securities of the transferee or surviving entity normally entitled to vote in the election of directors, managers, or trustees, as applicable, of the transferee or surviving entity; (b) any Person or group of Persons (within the meaning of Section 13 or 14 of the Securities Exchange Act) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by the SEC under the Securities Exchange Act) of the common shares representing a majority of total voting power of the aggregate outstanding common shares of CHC normally entitled to vote in the election of directors of CHC; (c) during any period of twelve (12) consecutive calendar months, individuals who were directors or trustees of CHC on the first day of such period (together with any new directors or trustees whose election by the board of directors or board of trustees of CHC or whose nomination for election by the stockholders of CHC was approved by a vote of a majority of the directors  or trustees then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the board of directors of CHC; or (d) any Person becomes entitled to either force a change in the individuals serving on CHC’s board of directors, or name one or more individuals to serve on CHC’s board of directors, as a result of such Person’s rights as a holder of any preferred capital stock of CHC; or

 

 

 

 

 

 

 

  

  

  

 

 

 

 

(iii)           in the event that CCG issues preferred capital stock creating rights to force any change in CCG’s board of directors, if any, or management, the exercise of any such rights resulting in any such forced changes.

 

SECTION 8.17. Subsidiaries.

 

Acquire or hold any equity interests in any other Person without the prior written consent of the Lender.  Should Lender approve of a subsidiary, then such subsidiary shall provide an unlimited guaranty of such Borrower’s Obligations.

 

SECTION 8.18. Accounting Changes.

 

Make, or permit any Subsidiary of such Borrower to make, any significant change in accounting treatment or reporting practices, except as required by GAAP, or change its fiscal year or the fiscal year of any Subsidiary of such Borrower.

 

	
SECTION 9.

	
DEFAULTS

 

SECTION 9.1. Defaults.

 

In case of the happening of any of the following events (herein called “Events of Default”):

 

SECTION 9.1.1.  Any payment, whether for principal, interest, fees, charges, or otherwise, due with respect to any Advance shall not be paid (i) (other than pursuant to Section 2.1.2) on the date when due and payable (including the payment of the full principal balance of all Advances on the Facility Termination Date); or (ii) with respect to any payments required under Section 2.1.2 within the two (2) Business Day period referenced in Section 2.1.2; or

 

SECTION 9.1.2.  Any representation or warranty made by the Borrowers (or any of its officers) herein, or in any certificate, agreement, instrument or statement contemplated by or made or delivered pursuant to or in connection herewith or therewith shall prove to have been incorrect when made in any material respect; or

 

SECTION 9.1.3.  The Borrowers shall fail to perform or observe any other term, covenant or agreement contained herein or in any agreement or document executed or delivered in conjunction herewith or with the Advances, or any other Loan Document, on its part to be performed or observed and any such failure remains unremedied for thirty (30) days after written notice thereof shall have been given to the Borrowers specifying such failure by the Lender, except with respect to Sections 5.4, 7.6, 7.12 and all subsections of Section 8 (except with respect to Section 8.7 as to involuntary Liens) with respect to which no notice and cure period shall be required; or

 

SECTION 9.1.4.  This Agreement shall, at any time after its execution and delivery, for any reason cease to be in full force and effect (unless such occurrence is in accordance with its terms or after payment thereof or except as a result of the Lender’s default hereunder) or shall be declared to be null and void, or the validity or enforceability thereof shall be contested by the Borrowers or the Borrowers shall deny that it has any further liability or obligation hereunder; or

 

 

 

 

 

  

  

  

 

 

 

 

SECTION 9.1.5.  Any judgment, writ, warrant of attachment or execution or similar process shall be issued or levied in respect of the Operating Account or any other account maintained by the Borrowers at the Lender, other than an Excepted Accounts, and shall not be discharged or released within thirty (30) days; or

 

SECTION 9.1.6.  Any of the Borrowers, CCG or CHC shall be adjudicated bankrupt or insolvent, or admit in writing its inability to pay its debts as they mature, or make an assignment for the benefit of creditors; or any such Person shall fail generally to pay its debts as such debts become due and payable; or any such Person shall apply for or consent to the appointment of any receiver, trustee, custodian or similar officer for it or for all or any substantial part of its property; or such receiver, trustee, custodian or similar officer shall be appointed without the application or consent of such Person, as the case may be, and such appointment shall continue undischarged for a period of sixty (60) days; or any such Person shall institute (by petition, application, answer, consent or otherwise) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding relating to it under the laws of any jurisdiction; or any such proceeding shall be instituted (by petition, application or otherwise) against any such Person and shall remain undismissed for a period of sixty (60) days; or any judgment, writ, warrant of attachment or execution or similar process shall be issued or levied in respect of an obligation (alleged or otherwise) of any such Person against any property or asset of such Person with a value in excess of $1,000,000 and such judgment, writ or similar process shall not be released, vacated, stayed or fully bonded within sixty (60) days after its issue or levy; or

 

SECTION 9.1.7.  The Borrowers shall receive a notice or declaration of default with respect to the payment when due of any principal of or interest on any of their other Debts in an amount in excess of $1,000,000 (except for Debts being contested in good faith for which adequate reserves have been established) or the Borrowers shall receive a notice or declaration of default with respect to any event specified in any note, agreement, indenture or other document evidencing or relating to any such Debt, if the effect of such event is to cause, or (with the giving of any notice or the lapse of time or both) to permit the holder or holders of such Debt (or a trustee or agent on behalf of such holder or holders) to cause, such Debt to become due, or to be prepaid in full, prior to its stated maturity; or

 

SECTION 9.1.8.  An event or condition occurs or exists with respect to any Plan concerning which the Borrowers are under an obligation to furnish a report to the Lender in accordance with Section 7.7.9 and as a result of such event or condition, together with all other such events or conditions, the Borrowers, or any ERISA Affiliate has incurred or in the opinion of the Lender is reasonably likely to incur a liability to a Plan or the PBGC (or any combination of the foregoing) which is material in relation to the financial position of the Borrowers; or 

 

 

 

 

  

  

  

 

 

 

 

SECTION 9.1.9.  Any of the Borrowers shall terminate its existence or suspend or discontinue its business; or

 

SECTION 9.1.10. There shall occur a default beyond applicable notice and cure periods under the BofA Warehouse Facility (or replacement warehouse lines of credit that constitute Warehousing Debt under this Agreement); or

 

SECTION 9.1.11.  There shall occur an event of default under any other agreement, understanding or credit accommodation between or among the Lender, on one hand, and one or more of a Borrower, or any Subsidiary of such Borrower, on the other hand.

 

then, and in every such event and at any time thereafter during the continuance of such event, the Lender shall have the rights described in the following subsections of this Section 9.

 

SECTION 9.2. Remedies.

 

SECTION 9.2.1.  Upon the occurrence of any Event of Default, the Lender shall have the right to take one or more of the following actions: (i) by notice to the Borrowers terminate the Commitment and it shall thereupon terminate, (ii) declare the Advances (together with accrued interest and all other Obligations including any other charges thereon) to be, and the Advances and such other Obligations shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers; provided that in the case of any of the Events of Default specified in Section 9.1.6, without any notice to the Borrowers or any other act by the Lender, the Commitment shall thereupon terminate and the Advances (together with accrued interest thereon and all other Obligations) shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrowers.

 

SECTION 9.2.2.  Upon the occurrence of any Event of Default, the Lender shall have as to any Collateral all other rights and remedies provided for herein and all rights and remedies of a secured party under the Uniform Commercial Code as in effect in the State of New York and, in addition thereto and not in lieu thereof, all other rights or remedies at law or in equity existing or conferred upon the Lender by other jurisdictions or other applicable law or given to the Lender pursuant to any security agreement, other instrument or agreement heretofore, now, or hereafter given as security for the Borrowers’ obligations hereunder.

 

SECTION 9.2.3.  Without limiting the generality of the foregoing, upon the occurrence of any Event of Default,

 

(i)           The Lender may apply the cash, if any, then held by it in the, Operating Account or as otherwise held by the Lender as Collateral to the payment of all outstanding Obligations.

 

(ii)           The Lender shall have the right, without any further action or consent of the Borrowers to immediately direct the issuer of any Security to identify the Lender or its designee on its books and records as the record, legal and beneficial owner of the Collateral in full substitution of the Borrowers. The Lender or its designee shall thereafter have the sole right to exercise all rights, privileges, options and powers relating to the Collateral, including the right to receive any and all distributions and cash distributions as to any Collateral.

 

 

 

 

 

 

  

  

  

 

 

 

(iii)           In the exercise of such rights and remedies, the Lender may, without notice except as specified below, sell the Collateral or any part thereof at one or more public or private sales held at any of the Lender’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Lender may deem reasonable. The Borrowers agree that any private sale may result in prices and other terms less favorable then if such sale were a public sale. The Borrowers agree that, to the extent notice of sale shall be required by law, at least ten (10) days’ prior notice to the Borrowers of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Lender may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(iv)           To the extent any Collateral is so saleable, the Lender may sell the Collateral at any broker’s board or on any securities exchange.

 

(v)           The Lender agrees not to seize or sell the Data Files separate and apart from the remainder of the Collateral. If the Lender is selling the Data Files it will give the Borrowers a reasonable opportunity at the Borrowers’ expense to make a copy of any data contained on such Data Files (provided that the Borrowers may not alter, delete, corrupt or destroy any data remaining on such Data Files and that such copying must be completed prior to the date set by the Lender for the sale of the Data Files in its notice of sale under the UCC). The Borrowers hereby agree to give the Lender or its agents or designees unrestricted access to the Data Files such that the Lender is able to assess the value of the Collateral and to enforce its remedies pursuant to Section 9.

 

(vi)           In any public or private sale of any of the Collateral, the Lender is authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order to comply with, or otherwise avoid any violation of applicable law regarding any public or private sale, including any required approval of the sale or of the purchaser by any governmental regulatory authority or official. Such compliance shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner. The Lender shall not be liable or accountable to the Borrowers for any price reduction resulting from, or expense incurred as a result of, the Lender’s compliance with any such limitation or restriction. The Lender shall be under no obligation to delay any sale of any of the Collateral for the period of time necessary to permit the Borrowers to register such Collateral for public sale under the Securities Act of 1933, as amended from time to time, or under applicable state securities laws.

 

 

 

 

 

 

 

 

 

  

  

  

 

 

 

 

(vii)           Upon any such sale, the Lender shall have the right to deliver, assign and transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the property sold, absolutely free from any claim or right of the Borrowers of any kind, including any equity or right of redemption of the Borrowers, and the Borrowers hereby specifically waive all rights of redemption, stay or appraisal which they have or may have under any rule of law or statute now existing or hereafter adopted.

 

(viii)           At any public or private sale the Collateral may be sold in one lot as an entirety or in separate portions, as the Lender may determine.

 

(ix)           In case of any sale of all or any part of the Collateral on credit or for future delivery, the Collateral so sold may be retained by the Lender until the selling price is paid by the purchaser thereof, but the Lender shall not incur any liability in case of the failure of such purchaser to take delivery of and pay for the Collateral so sold and, in case of any such failure, such Collateral may again be sold as provided herein.

 

(x)           Nothing contained in this Agreement shall prohibit the Lender from purchasing the Collateral at such sale.

 

(xi)           No remedy or right of the Lender hereunder or otherwise available under applicable law or in equity, shall be exclusive of any other right or remedy. Each such remedy or right shall be in addition to every other remedy or right now or hereafter existing under applicable law or in equity. No delay in the exercise of, or omission to exercise, any remedy or right after any Event of Default shall impair any such remedy or right or be construed as a waiver of any such Event of Default or an acquiescence thereto, nor shall it affect any subsequent Event of Default of the same or different nature. Every remedy or right may be exercised concurrently or independently and when and as often as may be deemed necessary by the Lender.

 

SECTION 9.2.4.  The Lender shall not incur any liability as a result of the sale of the Collateral, or any part thereof, at any public or private sale. The Borrowers hereby waive any claims it may have against the Lender arising by reason of the fact that the price at which the Collateral may have been sold at such private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Obligations then outstanding.

 

 

 

 

  

  

  

 

 

 

 

SECTION 9.2.5.  The Borrowers waive any right to require the Lender to (i) proceed against any Person, (ii) proceed against or exhaust any of the Collateral, marshal assets or otherwise pursue its rights and remedies as against the Collateral in any particular order or (iii) pursue any other remedy in its power. The Lender shall not be required to take any steps necessary to preserve any rights of the Borrowers against holders of mortgages prior in lien to the lien of any Mortgage included in the Pledged Mortgages.

 

SECTION 9.2.6.  The Lender may, but shall not be obligated to, advance any sums or do any act or thing necessary to uphold and enforce the lien and priority of, or the security intended to be afforded by, any Pledged Mortgage, including payment of delinquent taxes or assessments and insurance premiums. All advances, charges, costs and expenses, including reasonable attorneys fees (for which the Lender shall provide an accounting), incurred or paid by the Lender in exercising any right, power or remedy conferred by this Agreement, or in the enforcement hereof together with interest thereon at the Default Rate from the time of payment until repaid, shall become a part of the Obligations.

 

SECTION 9.2.7.  No failure on the part of the Lender to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Lender of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies herein provided are cumulative and are not exclusive of any remedies provided by law.

 

	
SECTION 10.

	
LENDER APPOINTED ATTORNEY-IN-FACT

 

The Lender is hereby appointed the attorney-in-fact of each Borrower for the purpose of carrying out the provisions hereof and taking any action and executing any instruments which the Lender may deem reasonably necessary to accomplish the purposes hereof with respect to the Collateral after the occurrence of an Event of Default, which appointment as attorney-in-fact is irrevocable and coupled with an interest. Without limiting the generality of the foregoing after the occurrence of an Event of Default, the Lender shall have the right and power to receive, endorse and collect all checks made payable to the order of the Borrowers representing any payment on account of the principal of or interest on any of the Pledged Mortgages or Securities and to give full discharge for the same.

 

	
SECTION 11.

	
BENEFIT OF AGREEMENT; ASSIGNMENT; PARTICIPATIONS

 

SECTION 11.1. Successors and Assigns.

 

The terms and provisions of this Agreement and the other Loan Documents shall be binding upon and inure to the benefit of the Borrowers, the Lender and their respective successors and assigns, except that the Borrowers shall not have the right to assign its rights or obligations under this Agreement or the other Loan Documents.

 

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 11.2. Right to Assign.

 

Lender shall have the unrestricted right at any time or from time to time, to assign all or any portion of its rights and obligations hereunder to one or more lenders or other financial institutions (each, an “Assignee”), and the Borrowers agree that they shall execute, or cause to be executed, such documents, including amendments to this Agreement, any other Loan Document, and to any other documents, instruments and agreements executed in connection herewith or therewith as the assigning Lender shall deem necessary to effect the foregoing (collectively, the “Assignment Documents”), provided that the Borrowers shall have the right to consent to such assignment if no Default or Event of Default exists and the proposed Assignee is not an Affiliate of the Lender.  In addition, at the request of the assigning Lender and any such Assignee, the Borrowers shall issue one or more new promissory notes, as applicable, to any such Assignee and, if such assigning Lender has retained any of its rights and obligations hereunder following such assignment, to such assigning Lender, which new promissory notes shall be issued in replacement of, but not in discharge of, the liability evidenced by the promissory note held by such assigning Lender prior to such assignment and shall reflect the amount of the respective Commitments and Advances held by such Assignee and assigning Lender after giving effect to such assignment. Upon the execution and delivery of the Assignment Documents in connection with an assignment, and the payment by Assignee of the purchase price agreed to by such assigning Lender and such Assignee, such Assignee shall be a party to this Agreement and shall have all of the rights and obligations of the Lender hereunder (and under any and all other Guaranties, documents, instruments and agreements executed in connection herewith) to the extent that such rights and obligations have been assigned by such assigning Lender pursuant to the assignment documentation between such assigning Lender and such Assignee, and such assigning Lender shall be released from its obligations hereunder and thereunder to a corresponding extent. Lender may furnish any information concerning the Borrowers in their possession from time to time to prospective Assignees, provided that Lender shall require any such prospective Assignees to agree in writing to maintain the confidentiality of such information.

 

SECTION 11.3. Pledge to Federal Reserve.

 

Lender may at any time pledge or assign all or any portion of its rights under the Loan Documents to any of the Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. §341. No such pledge or assignment or enforcement thereof shall relieve the Lender of its obligation under any of the Loan Documents.

 

SECTION 11.4. Participants.

 

Lender shall have the unrestricted right at any time and from time to time, and without the consent of or notice to the Borrowers, to grant to one or more banks or other financial institutions (each, a “Participant”) participation interests in the Loan Documents and/or any or all of the Advances held by the Lender hereunder. In the event of any such grant by the Lender of a participation interest to a Participant, whether or not upon notice to the Borrowers, the Lender shall remain responsible for the performance of its obligations hereunder and the Borrowers shall continue to deal solely and directly with the Lender in connection with the Lender’s rights and obligations hereunder. Lender may furnish any information concerning the Borrowers in its possession from time to time to prospective Participants, provided that the Lender shall require any such prospective Participant to agree in writing to maintain the confidentiality of such information.

 

 

 

 

 

  

  

  

 

 

 

 

	
SECTION 12.

	
 MISCELLANEOUS SECTION

 

SECTION 12.1. Notices.

 

(a)                Except where instructions or notices are authorized herein to be given by telephone (and except as provided in paragraph (b) below), all instructions, notices and other communications to be given to any party hereto shall be in writing and shall be personally delivered or sent by certified mail, postage prepaid, private delivery service (including recognized overnight courier) or by telecopy, and shall be deemed to be given for purposes of this Agreement on the day (or at the time of day, if applicable) when actually received by the intended party at its address or telecopy or telephone number as set forth below (or as such party may specify to the other parties in writing).

 

If to CMC and/or CMP:

 

Prior to February 1, 2012:

 

Centerline Mortgage Capital Inc.

Centerline Mortgage Partners Inc.

625 Madison Avenue, 5th Floor

New York, NY 10022

Attn: Michael Larsen

Tel: (212) 317-5727

Fax: (212) 593-5769

E-mail: mlarsen@centerline.com

 

On and after February 1, 2012:

 

Centerline Mortgage Capital Inc.

Centerline Mortgage Partners Inc.

100 Church Street, 15th Floor

New York, NY 10007

Attn: Michael Larsen

Tel: (212) 317-5727

Fax: (212) 593-5769

E-mail: mlarsen@centerline.com

 

With a copy to:

 

Alan S. Cohen, Esq.

Nixon Peabody LLP

437 Madison Avenue

New York, NY 10022

Tel: (212) 940-3093

Fax: (866) 201-5962

E-mail: ascohen@nixonpeabody.com

 

 

 

 

  

  

  

 

 

 

If to the Lender:

 

Manufacturers and Traders Trust Company

25 South Charles Street, 17th Floor

Baltimore, MD  21201

Attn: John G. Mangan, Vice President

Tel: (410) 545-2373

Fax: (410) 545-2385

E-mail: jmangan@mtb.com

 

With a copy to:

 

Francesco A. De Vito, Esq.

Rackemann, Sawyer & Brewster

160 Federal Street

Boston, MA  02110

Tel: (617) 951-1112

Fax: (617) 542-7437

E-mail: fdevito@rackemann.com

 

(b)                Notices and other communications to the Lender may be delivered or furnished by electronic mail pursuant to procedures approved by the Lender, provided that the foregoing shall not apply to notices to any Lender pursuant to Section 2 if the Lender has notified the Lender and the Borrowers that it cannot or does not want to receive notices under such Section by electronic mail.  The Lender or the Borrowers may, in its discretion, agree to accept notices and other communications to it by electronic mail pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.  Unless the Lender otherwise prescribes, notices and other communications sent to an electronic mail address shall be deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return electronic mail or other written acknowledgment), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.  Notwithstanding anything contained herein, the Borrowers shall be required to provide paper copies of the certificates required under Section 7.7.4 and paper copies of such other notices or communications specified by the Lender. 

 

SECTION 12.2. Fees and Expenses of the Lender.

 

The Borrowers will pay all reasonable out-of-pocket costs and expenses incurred by the Lender in connection with the initial preparation, execution and delivery of this Agreement and the Credit Note, and any other agreements or documents referred to herein or therein, and the Borrowers shall pay on demand all expenses of the Lender in connection with the preparation, administration, default, collection, waiver or amendment of loan terms or in connection with the Lender’s exercise, preservation, or enforcement of any of its rights, remedies or options hereunder, including reasonable fees of outside legal counsel or the allocated costs of in-house legal counsel, accounting, consulting, brokerage or other similar professional fees or expenses, and any fees or expenses associated with travel or other costs relating to any appraisals or examinations conducted in connection with the Advances or any Collateral therefor, and the amount of all such expenses shall, until paid, bear interest at the rate applicable to principal hereunder (including any Default Rate) and be an obligation secured by the Collateral; provided, however, that in the absence of the existence of the Default hereunder, the Borrowers shall have no liability for audit fees; provided, however, that there shall be no limitation on each Borrower’s obligations with respect to audit expenses during any period in which a Default exists and is continuing. In addition to the foregoing, the Borrowers shall pay on demand all expenses of each of the Lender arising during the existence of a Default related to the enforcement of any Lender’s rights or such other action by the Lender to preserve or realize on any Collateral. The Borrowers hereby authorize the Lender, at any time during the term of this Agreement, to make Advances in the amount of any such fees or expenses described in this Section 12.2.  The obligations of the Borrowers under this Section 12.2 shall survive any termination of this Agreement.

 

 

 

 

 

  

  

  

 

 

 

 

SECTION 12.3. Applicable Law.

 

This Agreement shall be construed in accordance with and governed by the law of the State of New York.

 

SECTION 12.4. Amendments and Waivers. This Agreement may not be amended, modified or supplemented unless the amendment, modification or supplement is set forth in a writing signed by both Borrower and Lender.

 

SECTION 12.5. Non-Waiver of Rights by the Lender.

 

Neither any failure nor any delay on the part of the Lender in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

SECTION 12.6. Setoff.

 

Subject to the second paragraph in this Section 12.6, the Borrowers hereby grant to the Lender a continuing security interest and right of setoff as security for all of the Obligations of the Borrowers to the Lender, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property now or hereafter in the possession, custody, safekeeping or control of Lender or any Lender or any entity under the control of the Lender and their respective successors and assigns or in transit to any of them. ANY AND ALL RIGHTS TO REQUIRE THE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE ADVANCES PRIOR TO EXERCISING ITS RIGHTS OF SETOFF, OR LIEN WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE BORROWER IS HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

 

 

 

 

 

 

 

  

  

  

 

 

 

 

If a Default shall have occurred and be continuing, the Lender shall have the right, at any time and from time to time without notice to the Borrowers, any such notice being hereby expressly waived, to set-off and to appropriate or apply any and all deposits of money or property or any other indebtedness at any time held or owing by the Lender or any of its affiliates to or for the credit of the account of the Borrowers against and on account of all outstanding Obligations then due hereunder and all other obligations and liabilities of the Borrowers to the Lender or any of its affiliates, irrespective of whether or not the Lender shall have made demand hereunder, whether or not such Obligations and liabilities shall have matured, and regardless of the adequacy of the Lender’s other Collateral; provided, however, notwithstanding anything in this Agreement to the contrary, neither the Lender nor any of its affiliates shall setoff, appropriate or apply any funds which are held in the Excepted Accounts.

 

SECTION 12.7. Counterparts.

 

This Agreement may be executed in counterparts which, taken together, shall constitute a single document.

 

SECTION 12.8. Severability.

 

In case any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby.

 

SECTION 12.9. Relationship of the Parties.

 

This Agreement provides for the making of Advances by the Lender, in its capacity as lender, to the Borrowers, in their capacity as borrowers, and for the payment of interest, repayment of principal by the Borrowers to the Lender, and for the payment of certain fees by the Borrowers to the Lender. The relationship between the Lender and the Borrowers is limited to that of creditors/secured party, on the one hand, and debtors, on the other hand. The provisions herein for compliance with financial covenants and delivery of financial statements are intended solely for the benefit of the Lender (and their respective successors and assigns, including any Assignee or Participant) to protect its interests as lender in assuring payments of interest and repayment of principal and payment of certain fees, and nothing contained in this Agreement shall be construed as permitting or obligating the Lender to act as a financial or business advisor or consultant to the Borrowers, as permitting or obligating the Lender to control the Borrowers or to conduct each Borrower’s operations, as creating any fiduciary obligation on the part of the Lender to the Borrowers, or as creating any joint venture, agency, or other relationship between the parties hereto other than as explicitly and specifically stated in this Agreement. Each Borrower acknowledges that it has had the opportunity to obtain the advice of experienced counsel of its own choosing in connection with the negotiation and execution of this Agreement and to obtain the advice of such counsel with respect to all matters contained herein, including the provision for waiver of trial by jury. Each Borrower further acknowledges that it is experienced with respect to financial and credit matters and has made its own independent decision to apply to the Lender for credit and to execute and deliver this Agreement.

 

 

 

 

 

 

 

 

  

  

  

 

 

 

SECTION 12.10. Confidentiality.

 

The Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its directors, officers, employees, representatives and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any governmental authority (provided that the Lender shall, to the extent reasonably practical, give the Borrowers reasonable notice prior to any such required disclosure and an opportunity to contest same, at the Borrowers’ sole cost and expense, and the Lender shall comply with any applicable protective order or equivalent imposed by any governmental authority as a condition of such disclosure), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement or any other Loan Document, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement, (g) with the consent of the Borrowers or (h) to the extent such Information becomes publicly available other than as a result of a breach of this Section.  For the purposes of this Section, “Information” means all information received from either of the Borrowers relating to either of the Borrowers or its business, including, without limitation, any information relating to any Pledged Mortgages or Pledged Items, other than any such information that is or becomes available to the Lender on a non-confidential basis from a source other than the Borrowers that is not, to the Lender’s knowledge, prohibited from transmitting the information to the Lender by a contractual or legal obligation.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

SECTION 12.11.Consent to Jurisdiction.

 

THE LENDER AND THE BORROWER IRREVOCABLY AND UNCONDITIONALLY (I) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT OF THE STATE OF NEW YORK OR OF THE STATE OF NEW YORK SITTING IN MANHATTAN OR SUFFOLK COUNTY (RESPECTIVELY), AND ANY APPELLATE COURT FROM ANY SUCH COURT, SOLELY FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT TO ENFORCE ITS OBLIGATIONS UNDER THIS AGREEMENT OR RELATING IN ANY WAY TO THIS AGREEMENT AND (II) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND ANY RIGHT OF JURISDICTION ON ACCOUNT OF ITS PLACE OF RESIDENCE OR DOMICILE.

 

 

 

 

 

 

 

 

 

  

  

  

 

 

 

 

SECTION 12.12. Waiver of Jury Trial.

 

THE BORROWERS AND THE LENDER (BY ACCEPTANCE OF THIS AGREEMENT) MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THE AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE LENDER RELATING TO THE ADMINISTRATION OF THE ADVANCES OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, THE BORROWERS HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE BORROWERS CERTIFY THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR THE LENDER TO ENTER INTO THIS AGREEMENT AND MAKE THE ADVANCES.

 

SECTION 12.13. Integration Clause.

 

This Agreement and the other Loan Documents are intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Agreement and the other Loan Documents. All prior or contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be superseded by this Agreement and the other Loan Documents. No parties may rely on any promise, agreement or understanding unless now set forth in this Agreement or the other Loan Documents.

 

[Remainder of page intentionally left blank; signature page follows]

 

 

 

 

 

 

 

 

 

 

  

  

  

 

 

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

 

 

	
 BORROWER:

	  
	
CENTERLINE MORTGAGE CAPITAL INC.

	
 

 

By:

	
  

 

/s/ William T. Hyman

	
Name:

	William T. Hyman
	
Title:

	Chief Executive Officer
	
 

 

CENTERLINE MORTGAGE PARTNERS INC.

	
 

 

By:

	  
 

/s/ William T. Hyman

	
Name:

	William T. Hyman
	
Title:

	Chief Executive Officer
	
 

 

MANUFACTURERS AND TRADERS TRUST COMPANY

	
 

 

By:

	
 

 

/s/ John G. Mangan

	
Name:

	 
John G. Mangan

	
Title:

	Vice PresidentEX-10.1

Exhibit 10.1

PURCHASE AND SALE AGREEMENT

between

FISHER MEDIA SERVICES COMPANY,

a Washington corporation

as SELLER

and

HINES GLOBAL REIT 100/140 FOURTH AVE LLC,

a Delaware limited liability company

as BUYER

DATED: November 17, 2011

TABLE OF CONTENTS

Page

	 	 	 
	ARTICLE 1.PURCHASE AND SALE

1.1Agreement to Buy and Sell

1.2Exclusions from Property

ARTICLE 2.PURCHASE PRICE

2.1Purchase Price

2.2Payment of Purchase Price

ARTICLE 3.TITLE TO PROPERTY

3.1Review of Title

3.2Conveyance

3.3Buyer’s Policy

3.4Seller’s Policy

	 	

	ARTICLE 4.CONDITION OF THE PROPERTY

	4.1Deliveries Made by Seller

4.2Disclosure Statement

4.3“AS-IS” Sale and Release

	 	

	4.4Continued Access to the Property

	ARTICLE 5.REPRESENTATIONS, WARRANTIES AND COVENANTS

	5.1Definitions

	 	

	5.2Seller’s Representations and Warranties

	5.3Incorrect Seller Representation or Warranty

	5.4Buyer’s Representations and Warranties

	5.5Seller’s Covenants.

5.6Buyer’s Covenants

	 	

	5.7Leaseback of Fisher Occupied Space

	ARTICLE 6.CONDITIONS TO CLOSING

	6.1Seller’s Conditions to Closing

	6.2Buyer’s Conditions to Closing

	ARTICLE 7.CLOSING

7.1Closing Procedure

7.2Deposits into Escrow

	 	

	7.3Closing Costs and Other Expenses

	7.4Prorations

7.5Closing of Escrow

7.6Possession

	 	

	ARTICLE 8.CONDEMNATION; DAMAGE; DESTRUCTION

	8.1Condemnation

8.2Damage or Destruction

	 	

	ARTICLE 9.BREACH OF AGREEMENT.

	9.1Seller’s Remedies

9.2Buyer’s Remedies

9.3Fees

	 	

	ARTICLE 10.[INTENTIONALLY DELETED]

	ARTICLE 11.GENERAL PROVISIONS

	11.1Counterparts

11.2Entire Agreement

11.3Counsel; Construction

11.4Choice of Law

11.5Severability

	 	

	11.6Waiver of Covenants, Conditions or Remedies

	11.7Business Day

11.8Exhibits and Schedules

11.9Amendment

11.10

11.11

11.12

11.13

11.14

11.15

11.16

11.17

11.18

11.19

11.20

11.21

11.22

11.23

	 	

Relationship of Parties

No Third-Party Benefit

Time of the Essence

Further Acts

No Recording

Assignment

Attorneys’ Fees

Advisors

Notices

Mutual Waivers of Jury Trial and Certain Damages

Confidentiality

Limitation of Liability

Joinder

Cooperation with Auditors and SEC Filings
	LIST OF EXHIBITS

	 	

	 

	EXHIBIT A

EXHIBIT B

EXHIBIT C

EXHIBIT D

EXHIBIT E

EXHIBIT F

EXHIBIT G

EXHIBIT H

EXHIBIT I-1

EXHIBIT I-2

EXHIBIT J

EXHIBIT K

EXHIBIT L

EXHIBIT M

EXHIBIT N

EXHIBIT O

EXHIBIT P

EXHIBIT Q

	 	Legal Description of Property

List of Excluded Personal Property and Excluded Permits

List of Due Diligence Materials

Commercial Real Property Disclosure Statement

List of Existing Leases and Security Deposits

List of Existing Service Contracts

List of Existing Environmental Reports

List of Existing Warranties

Form of Tenant Estoppel Certificate

Form of Landlord Estoppel Certificate

Form of Fisher Lease

Form of Rooftop Easement

Form of Deed

Form of Bill of Sale

Form of Assignment and Assumption Agreement

Form of General Assignment

Form of Tenant Notice

Form of Reimbursement Agreement

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (“Agreement”) is made and entered into as of this 17th day of
November, 2011 (“Effective Date”), by and between FISHER MEDIA SERVICES COMPANY, a Washington
corporation (“Seller”), and HINES GLOBAL REIT 100/140 FOURTH AVE LLC, a Delaware limited liability
company (“Buyer”).

RECITALS:

A. Seller owns certain land (“Land”) in the City of Seattle, County of King, State of
Washington as more particularly described on EXHIBIT A attached hereto, which is commonly
known as “Fisher Plaza.” The Land is comprised of two tax parcels (King County Tax Parcel Nos.
1991200150 and 1991200170) and is bound by Denny Way to the south, John Street to the north, Fourth
Avenue North to the west and Fifth Avenue North to the east.

B. The Land is improved with two buildings, one commonly known as 100 Fourth Avenue North,
Seattle, Washington 98109 (“Fisher Plaza West”), which contains six (6) stories and approximately
99,488 square feet, and the second commonly known as 140 Fourth Avenue North, Seattle, Washington
98109 (“Fisher Plaza East”), which contains five (5) stories and approximately 194,239 square feet
(such buildings together, “Buildings”). The Land is also improved with a subterranean parking
structure containing 504 stalls (“Parking Structure”).

C. Seller and its affiliates occupy approximately 120,969 square feet in Fisher Plaza East
(“Fisher Occupied Space”), which occupancy is undocumented by any lease or other agreement, given
that Seller owns the property. Different office, data center, retail, media, co-location and
carrier tenants occupy other space within the Buildings pursuant to various existing leases.

D. Prior to entering into this Agreement, Seller and its affiliates invited certain parties to
participate in a confidential process to select (“Selection Process”) an entity to purchase the
Property (defined below) and lease back portions thereof. During the Selection Process, Seller
made available to Buyer various documents, information and other materials related to the Property
and Buyer began its due diligence review of the Property. Seller has selected Buyer to purchase
the Property and is entering into this Agreement with Buyer in lieu of other potential purchasers
(“Potential Purchasers”).

E. Between its initial selection and finalization of this Agreement, Buyer completed its due
diligence review of the Land, Buildings, Parking Structure and other components of the Property to
its complete satisfaction. Buyer now desires to purchase from Seller the Land, Buildings, Parking
Structure and other components of the Property. Seller desires to sell to Buyer the Land,
Buildings, Parking Structure and other components of the Property on the condition that Buyer
leases back to Fisher Communications, Inc., a Washington corporation and an affiliate of Seller
(“Fisher Communications”), the Fisher Occupied Space, together with such other space and rights at
Fisher Plaza as are necessary or desirable for the continued occupation and operations of Seller
and its affiliates (which, among other affiliates, shall include Fisher Communications throughout
this Agreement) at Fisher Plaza.

F. The parties now wish to enter into this Agreement to set forth the terms and conditions
under which Buyer will purchase the Property from Seller and the terms and conditions under which
Buyer will lease back to Fisher Communications the Fisher Occupied Space.

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, Seller and Buyer agree as follows:

ARTICLE 1. PURCHASE AND SALE

1.1 Agreement to Buy and Sell. Subject to all of the terms and conditions of this
Agreement, Seller hereby agrees to sell to Buyer, and Buyer hereby agrees to purchase from Seller
the following (collectively, “Property”):

1.1.1 The Land, together with all of Seller’s right, title and interest in and to all
rights, licenses, privileges, reversions and easements appurtenant to the Land including,
without limitation, all minerals, oil, gas and other hydrocarbon substances on and under the
Land, as well as all air rights, water rights, water and water stock relating to the Land,
and all other appurtenances thereto;

1.1.2 All improvements, buildings, plazas, and other structures located on the Land,
including, without limitation, the Buildings and Parking Structure, and all infrastructure
and building fixtures located on or in any such improvements (collectively, “Improvements”
and together with the Land, “Real Property”);

1.1.3 All of Seller’s right, title and interest in and to all systems, appliances,
equipment, machinery, generators, furniture, furnishings, decorations, supplies,
above-ground storage tanks located in the Parking Structure (and any fuel therein as of the
Closing Date (defined in Section 7.1), except for any fuel in any jet fuel tank used for
refueling helicopters) and other personal property, if any, owned by Seller and located on
or about the Real Property and used in the operation and maintenance thereof (collectively,
“Tangible Personal Property”);

1.1.4 All of Seller’s right, title and interest in and to the following intangible
personal property, to the extent any is owned by Seller and freely transferable, which is
related to the ownership or operation of the Real Property: all development rights,
franchises, certificates of occupancy, soil and other reports and studies, surveys, maps,
utility contracts, and data relating to the operation or construction of the Real Property,
architect’s contracts, plans and specifications, engineering plans and studies, floor plans
and landscape plans (collectively, “Intangible Personal Property”). Seller may retain
copies of each of the foregoing items;

1.1.5 The Existing Leases (defined in Section 5.2.3) and any other leases, occupancy
licenses or other occupancy agreements affecting the Real Property that may be made by
Seller after the Effective Date as permitted by this Agreement (collectively, such permitted
agreements and the Existing Leases, “Leases”). Notwithstanding the foregoing, the Existing
Leases shall not include, and Seller hereby expressly reserves, that certain Office Space
Lease between Seller and LUT, LLC, a Washington limited liability company, dated March 10,
2010 (“LUT Lease”). LUT shall not be considered an Existing Occupant (defined in Section
4.4) as such term is used in this Agreement;

1.1.6 All of Seller’s right, title and interest in and to the Existing Service
Contracts (defined in Section 5.2.4) and any other service contracts affecting the
Property that may be made by Seller after the Effective Date as permitted by this Agreement
(collectively, such permitted contracts and the Existing Service Contracts, “Service
Contracts”), subject to Section 5.5.3 below;

1.1.7 All freely transferable Existing Warranties held by Seller (defined in Section
5.2.8); and

1.1.8 All freely transferable land use permits, building permits, variances, water
certificates or claims and other certificates, permits, licenses and approvals held by
Seller pertaining to the Property or the operation thereof (collectively, “Transferable
Permits”). Any of the foregoing items that are transferable, but require a particular
transfer process or governmental or other third-party approval, shall not be deemed “freely
transferable” (such permits being referred to herein as the “Process Permits,” and together
with the Transferable Permits, “Permits”), but shall be considered a part of the Property
and transferred pursuant to Section 5.5.4 below.

1.2 Exclusions from Property. Notwithstanding anything in Section 1.1 above to the
contrary, the term “Property” shall not include, and Seller hereby expressly reserves to itself all
of the following owned by Seller: (a) any Tangible Personal Property located within the Fisher
Occupied Space or otherwise on or about the Real Property in any space occupied by Seller or its
affiliates under the Fisher Lease, Rooftop Easement and Storage Space Agreement (all as defined in
Section 5.7); (b) any cars, trucks, vans, helicopters or similar vehicles owned by Seller or its
affiliates located on, around or outside of the Real Property (including any leasehold interests
therein); (c) all of Seller’s and its affiliates’ trademarks, service marks, logos and other marks,
trade or business names, and other proprietary information and other similar intangible property,
if any (provided that Buyer shall have the right to use the name “Fisher Plaza”, “Fisher Plaza
East” and “Fisher Plaza West” as the existing names of the Buildings pursuant to the terms of the
Fisher Lease); (d) the Plaza Telecom System, PlazaNet System and any Connection Lines (as each of
the foregoing terms are defined in Section 5.5.8 and Section 5.5.9), but only to the extent
described in Sections 5.5.8 and 5.5.9; and (e) any of the other items listed on
EXHIBIT B attached hereto. Buyer acknowledges that it is the intent of the parties that
Seller and its affiliates be allowed to retain all Property necessary for Seller’s or its
affiliates’ continued operations at the Real Property in the same manner as Seller and its
affiliates operate as of the Effective Date. If any such Property is not expressly excluded herein
or has been inadvertently left off EXHIBIT B, the parties shall work together in good faith
after Closing to effectuate the foregoing intent. This Section 1.2 shall survive Closing.

ARTICLE 2. PURCHASE PRICE

2.1  Purchase Price. The purchase price for the Property shall be One Hundred Sixty
Million and No/100 Dollars ($160,000,000.00) (“Purchase Price”). In order to timely pay an
approximation of the real estate excise tax which is due, the parties agree, for the immediate tax
reporting obligation only, that the real property allocation is One Hundred Fifty Nine Million Four
Hundred Thousand and No/100 Dollars ($159,400,000.00) and that the remaining portion of the
Purchase Price is allocated to personal property. Seller may contest the value of the real
property with the appropriate taxing authority. The Buyer’s personal property tax liability shall
not be increased from that existing at the Closing unless the parties have mutually agreed upon
such change, except as follows. Buyer shall indemnify and hold harmless Seller and its affiliates
from and against all costs, penalties and other liabilities that may arise in the event that any
applicable taxing authority disagrees with the above personal property allocation. In no event
shall the foregoing indemnity obligation be applicable for any personal property tax obligations of
Seller with respect to years prior to the year in which Closing occurs. This indemnification shall
survive Closing.

In connection with the purchase of the Property, Seller or one of its Affiliates has agreed to
pay to Buyer certain Reimbursement Payments as defined in, and under the terms and conditions set
forth in, the Reimbursement Agreement defined in Section 7.2.1(l) below. Any such Reimbursement
Payments that are made by Seller or its Affiliates to Buyer pursuant to the Reimbursement Agreement
shall be treated by the parties as an adjustment to (i.e., reduction in) the Purchase Price,
subject to the then prevailing accounting rules and tax regulations.

2.2 Payment of Purchase Price. The Purchase Price shall be paid as follows:

2.2.1 Deposit. The parties shall open an escrow account (“Escrow”) with
First American Title Insurance Company, at its office located at 818 Stewart Street, Suite
800, Seattle, Washington 98101 (in its capacity as escrow agent, “Escrow Agent”). No
later than the end of the next business day following the Effective Date, Buyer shall
deliver into Escrow Ten Million and No/100 Dollars ($10,000,000.00) by wire transfer of
immediately available federal funds to be held by Escrow Agent as an earnest money deposit
(“Deposit”). Escrow Agent shall invest the Deposit in any reasonable manner as agreed
upon by Seller and Buyer. Any interest that may accrue on the Deposit as a result of such
investment will accrue for the benefit of Buyer; provided, however, that if Seller is
entitled to the Deposit under the terms of this Agreement, other than for application to
the Purchase Price at Closing, then all interest accrued on the Deposit will be paid to
Seller with the Deposit. The Deposit shall be non-refundable, except as otherwise
expressly set forth herein. If Buyer fails to timely make the Deposit, (x) Seller shall
have the right to terminate this Agreement upon written notice delivered to Buyer and
Escrow Agent, and (y) neither party shall have any further rights or obligations
hereunder, except obligations hereunder that survive termination of this Agreement. The
Deposit shall be applied to the Purchase Price at Closing.

2.2.2 Closing Payment. The Purchase Price, as adjusted by the application of
the Deposit and any Extension Deposit (as defined in Section 7.1) and by the
prorations and credits specified herein, and together with all Closing costs to be paid by
Buyer as set forth on Buyer’s estimated settlement statement (“Buyer’s Closing Payment”),
shall be paid to Escrow Agent by wire transfer of immediately available federal funds
through Escrow no later than one (1) business day before the Closing Date.

ARTICLE 3. TITLE TO PROPERTY

3.1 Review of Title.

3.1.1 Prior to the Effective Date, Seller provided Buyer with (a) an ALTA Commitment
for an owner’s standard coverage policy of title insurance, prepared by First American
Title Insurance Company (in its capacity as title company, “Title Company”), under File
No. NCS-487994-WA1, having an effective date of November 7, 2011, along with copies of all
of the documents referenced as special exceptions therein (“Preliminary Report”), and (b)
an ALTA survey of the Real Property prepared by Bush, Roed & Hitchings, Inc. under Job
No. 2002249.02 dated August 29, 2011 (“Survey”). Buyer acknowledges that it had the
opportunity to review the Preliminary Report and Survey prior to the Effective Date.
Buyer does not object to Special Exception Nos. 4, 8 through 11, 14 (to the extent such
exception covers all Leases and Occupants) and 15 of the Preliminary Report, both parties
acknowledging, however, that Special Exception Nos. 5-7 and 11 have been deleted by the
Title Company and will not be included in Buyer’s Policy.

3.1.2 Within one (1) business day after the Effective Date, Seller shall deliver to
Buyer an update of the Preliminary Report along with copies of all of the documents
referenced as new exceptions therein (“Updated Report”). By giving written notice to
Seller on or before the date that is one (1) business day after receiving the Updated
Report, Buyer may object to the following exceptions only noted in the Updated Report: (a)
any new matters shown on the Updated Report or (b) any material discrepancies between the
Updated Report and the information shown on the Survey. Buyer shall not have the right to
object to any of the matters deemed Permitted Exceptions pursuant to Section
3.1.2.2 below. If any supplements to the Updated Report are issued after the Updated
Report has been delivered to Buyer, Buyer shall have one (1) business day from its receipt
of such supplement to object to any new matters shown thereon in accordance with the same
limitations as provided above in this Section 3.1.2. The Preliminary Report,
Updated Report and any supplements thereto shall be collectively referred to herein as the
“Title Report.”

3.1.2.1 Buyer shall be deemed to have approved title to the Real Property as shown in
the Title Report unless Buyer timely objects to any title exception as required in this
Section 3.1. If Buyer timely makes any such objection, Seller may, by giving
notice to Buyer within one (1) business day after Buyer’s objection notice, elect either
to remove such objection(s) or not to remove such objection(s). If Seller fails to timely
respond to Buyer’s objection notice, Seller shall be deemed to have elected not to remove
the objection(s) noted in Buyer’s notice. If Seller elects to remove any such
objection(s), Seller shall remove, or otherwise cure to Buyer’s reasonable satisfaction,
the title exception in question on or before the Closing Date at Seller’s expense. If
Seller elects (or is deemed to have elected) not to remove any such objection(s), Buyer
shall have the right, by giving written notice to Seller within one (1) business day after
Seller’s election not to remove (or deemed election not to remove), either to terminate
this Agreement or to withdraw such objection(s) by giving written notice to Seller. If
Buyer does not timely terminate this Agreement in accordance with the foregoing sentence,
Buyer shall be deemed to have approved title to the Real Property subject to the title
exception(s) in question.

3.1.2.2 Notwithstanding anything herein to the contrary, Seller shall remove on or
before the Closing Date (a) any mortgages, deeds of trust or other monetary liens (except
as noted in clauses (iii), (v) and (vii) below) encumbering the Real Property and (b) any
exceptions or encumbrances to title that are created by Seller after the Effective Date
without Buyer’s written consent. The term “Permitted Exceptions” as used herein shall
mean (i) the exceptions in the Title Report approved (or deemed approved) by Buyer
pursuant to this Section 3.1, (ii) all matters shown on the Survey, (iii)
non-delinquent real and personal property taxes, (iv) the Leases, the Fisher Lease and the
Rooftop Easement, (v) matters attributable to acts of Buyer and/or its members, managers,
partners, directors, officers, employees, consultants, agents, contractors, affiliates and
other representatives (“Buyer Parties”), (vi) provisions of existing laws, rules and
regulations including, without limitation, building, zoning and environmental laws, and
(vii) any non-delinquent lien for municipal betterments and special assessments assessed
against the Real Property.

3.1.2.3 If, on or before the Closing Date, Seller does not remove or cure any title
exception that Seller agreed to remove or cure or is required to remove according to the
terms of this Section 3.1, then Buyer shall have the right to terminate this
Agreement by delivering written notice thereof to Seller. If this Agreement is terminated
as provided in this Section 3.1.2.3, then the Deposit (and any Extension Deposit)
shall be returned to Buyer, Buyer shall receive the Liquidated Damages Payment from
Seller, Escrow shall be terminated and all documents and funds delivered into Escrow shall
be returned to the party that deposited the same (except as otherwise provided herein),
Seller shall pay any costs associated with terminating Escrow or cancelling the Title
Report, and neither party shall have any further rights or obligations hereunder, except
as expressly stated herein. All other elections to terminate this Agreement under this
Section 3.1 shall have a similar effect, except that both Buyer and Seller shall
equally pay any costs associated with terminating Escrow or cancelling the Title Report.

3.2 Conveyance. On the Closing Date, Seller shall convey to Buyer fee simple title to the
Real Property by a duly executed and acknowledged Special Warranty Deed (“Deed”), free and clear of
all defects and encumbrances other than the Permitted Exceptions.

3.3 Buyer’s Policy. Seller shall cause Title Company to issue to Buyer at Closing an ALTA
extended coverage owner’s policy of title insurance insuring Buyer’s title to the Real Property in
the full amount of the Purchase Price, subject only to the Permitted Exceptions and those general
exceptions and exclusions that are customary in such extended form of title insurance (“Buyer’s
Policy”). Buyer may request that Title Company issue special endorsements to Buyer’s Policy.
Seller shall furnish to Title Company any documents that Title Company reasonably requires to issue
such extended coverage or special endorsements reasonably requested by Buyer; provided, however,
that such documents shall be acceptable to Seller, in its reasonable discretion, and Seller shall
not be required to incur any non-customary additional obligations, liabilities, or expenses
associated with such extended coverage and Seller shall not be required to incur any additional
obligations, liabilities, or expenses associated with any special endorsements requested by Buyer.
Buyer shall be fully responsible for paying the additional costs associated with any extended
coverage and special endorsements that it requests. In no event shall the issuance of special
endorsements be a condition of Closing, and Closing shall timely proceed so long as an extended
coverage owner’s policy will be issued pursuant to the first sentence of this Section 3.3
and Title Company is irrevocably committed to issue extended coverage, subject only to the payment
of the applicable costs therefor and the delivery of the required documents from Seller.

3.4 Seller’s Policy. Seller shall have the right to request that Title Company provide a
simultaneously-issued seller’s policy of title insurance at Closing (“Seller’s Policy”), at
Seller’s sole cost and expense which policy shall be subject only to the same exceptions as
provided in Buyer’s Policy. Seller shall notify Buyer and Title Company no later than one (1)
business day before the scheduled Closing Date if Seller elects to obtain Seller’s Policy. In no
event shall the issuance of Seller’s Policy be a condition of the Closing.

ARTICLE 4. CONDITION OF THE PROPERTY

4.1 Deliveries Made by Seller. Buyer acknowledges that, prior to the Effective Date,
Seller delivered, and Buyer has received or was provided access to, all of the materials listed on
EXHIBIT C attached hereto (“Due Diligence Materials”). Except as expressly set forth in
this Agreement, Buyer acknowledges and agrees that neither Seller nor its affiliates or any of such
parties’ directors, officers, agents, contractors, employees or other representatives (such
affiliates and parties collectively, “Seller Parties”) make, and have not made, any warranty or
representation with respect to the accuracy, completeness, conclusions or statements expressed in
the Due Diligence Materials, nor do Seller or the Seller Parties represent or warrant that these
are the sole materials that were or now are available with respect to the matters covered thereby,
and Buyer hereby waives, relinquishes and releases any and all Claims (defined in Section
4.4.1) against Seller or any of the Seller Parties arising out of the accuracy, completeness,
conclusions or statements expressed in the Due Diligence Materials.

4.2 Disclosure Statement. Buyer and Seller acknowledge that the Real Property constitutes
“Commercial Real Estate” as defined in RCW 64.06.005. Buyer waives receipt of the seller
disclosure statement required under RCW 64.06 for transactions involving the sale of commercial
real estate, except for the section entitled “Environmental.” A completed copy of the
Environmental section of the seller disclosure statement is attached to this Agreement as
EXHIBIT D (“Disclosure Statement”). A fully executed original of the completed Disclosure
Statement will be delivered to Buyer as soon as practicable after the Effective Date hereof. Buyer
waives its right to rescind this Agreement under RCW 64.06.030. Buyer further acknowledges and
agrees that the Disclosure Statement (a) is for the purposes of disclosure only, (b) is not and
will not be part of this Agreement, and (c) is not and will not be construed as a representation or
warranty of any kind by Seller.

4.3 “AS-IS” Sale and Release.

4.3.1 Prior Due Diligence. Buyer acknowledges and agrees that (a) prior to
the Effective Date, Buyer and Seller negotiated the purchase and sale of the Property for
some time, (b) during such time, Buyer had ample opportunity to review the Due Diligence
Materials and to otherwise make any and all legal, factual and other inquiries, studies,
reviews and investigations as Buyer deemed necessary, desirable or appropriate with
respect to the Property, and (c) Buyer is fully satisfied with its prior review of the Due
Diligence Materials, all such investigations and all aspects of the Property. Buyer
therefore agrees that its purchase of the Property shall not be conditioned on the results
of any of Buyer’s prior or future inquiries, studies and investigations and hereby waives
any and all of such rights. Buyer further acknowledges that, during the parties’ prior
negotiation, Seller disclosed to Buyer that the outdoor fountain located in the southeast
corner of Fisher Plaza is not operational. Buyer agrees that Seller shall not have any
obligation whatsoever to repair such fountain and that Buyer shall take the Property,
including the fountain, in its current “AS-IS, WHERE-IS” condition as set forth in
Section 4.3.2 below.

4.3.2 As-Is” Sale. EXCEPT THOSE REPRESENTATIONS AND WARRANTIES PROVIDED IN
SECTION 5.2 BELOW AND ANY OTHER DOCUMENT EXECUTED AND DELIVERED BY SELLER OR
FISHER COMMUNICATIONS AT CLOSING, BUYER ACKNOWLEDGES AND AGREES THAT BUYER IS PURCHASING
THE PROPERTY IN AN “AS-IS, WHERE-IS” CONDITION “WITH ALL FAULTS AND DEFECTS”, WHETHER
KNOWN OR UNKNOWN, AND WITHOUT ANY WARRANTIES, REPRESENTATIONS OR GUARANTEES, EITHER
EXPRESSED OR IMPLIED, OF ANY KIND OR NATURE WHATSOEVER FROM OR ON BEHALF OF SELLER OR ANY
OF THE SELLER PARTIES, INCLUDING WITHOUT LIMITATION, THOSE OF FITNESS FOR A PARTICULAR
PURPOSE AND USE. Buyer acknowledges and agrees that (a) Buyer is a knowledgeable,
experienced and sophisticated buyer of real estate, (b) except as otherwise expressly set
forth in Section 5.2 below or in any other document executed and delivered by
Seller or Fisher Communications at Closing, neither Seller, the Seller Parties nor anyone
acting for or on behalf of any of them, has made any representation, warranty, promise or
statement, express or implied, to Buyer or the Buyer Parties, or to anyone acting for or
on behalf of any of them, concerning any aspect of or condition affecting the Property,
the use or development thereof or its fitness or any particular purpose, and (c) although
Buyer had access to the Due Diligence Materials, and notwithstanding the representations
made by Seller in Section 5.2 below or any other document executed and delivered
by Seller or Fisher Communications at Closing, Buyer is entering into this Agreement to
purchase the Property based solely upon its own investigation and examination of the
Property and upon the representations and warranties made by Seller in Sections
5.2 and 11.17 hereof as qualified therein. Therefore, as of Closing, Buyer
assumes the risk of all defects and conditions affecting the Property, whether known or
unknown, including but not limited to such defects and conditions that cannot be observed
by casual inspection, and Buyer assumes the risk that adverse matters affecting the
Property, including but not limited to adverse physical and environmental conditions, may
not have been revealed by Buyer’s due diligence performed with respect to the Property or
the Due Diligence Materials.

4.3.3 Release. By executing this Agreement, Buyer will be deemed to have (a)
made all studies, investigations and inspections that Buyer deemed necessary, appropriate
or desirable in connection with Buyer’s purchase of the Property, (b) fully satisfied
itself with its review of all such studies, investigations and inspections, the Due
Diligence Materials and all aspects of the Property, and (c) approved each of the
foregoing and this transaction without reservation. Except as expressly provided in this
Agreement, Buyer hereby waives, relinquishes and releases, on behalf of itself, the Buyer
Parties and their successors and assigns, Seller and the Seller Parties from any and all
Claims that Buyer has or may have arising from or related to any matter or thing in
connection with the Property, including, without limitation, any documents provided by
Seller or any Seller Party hereunder, any construction defects, errors or omissions in the
design or construction of the Property and any environmental conditions affecting the
Property, and Buyer shall not look to Seller or the Seller Parties in connection with any
of the foregoing for any redress or relief; provided, however, that Buyer is not releasing
Seller from any claims arising from Seller’s fraud or intentional misrepresentations
(“Non-Released Claims”). The release in this Section 4.3.3 shall be given full
force and effect according to each of its expressed terms and provisions and shall apply
to all Claims, regardless of whether such Claims are known or unknown, suspected or
unsuspected. Notwithstanding the foregoing, the waivers, releases and other matters set
forth in this Section 4.3.3 shall not limit Buyer’s right to implead or otherwise
seek joinder of Seller with respect to any claims for reimbursement or contribution
arising from Non-Released Claims.

4.3.4 Buyer’s Knowledge. Without limiting the generality of the release
contained in Section 4.3.3 above, and notwithstanding anything in this Agreement
to the contrary, neither Seller nor the Seller Parties shall have any liability whatsoever
with regard to any matter of which Buyer or the Buyer Parties have actual knowledge (as
defined in Section 5.1.4 below) prior to Closing. By executing this Agreement,
Buyer waives any such Claims; by Closing, Buyer shall be deemed to have waived any such
Claims; and Buyer shall not be entitled to “reserve” any such Claims of which it or the
Buyer Parties have actual knowledge at Closing.

4.3.5 Survival. The provisions of this Section 4.3 shall
indefinitely survive any Closing or termination of this Agreement.

Seller and Buyer each initial this Section 4.3 below to expressly acknowledge that the
waivers, releases and other terms herein have been specifically negotiated and agreed upon and to
further indicate their awareness and acceptance of each and every provision hereof.

	 	 	 	 	 	 	 
	 	 	 	 	Seller’s Initials:

	 	Buyer’s Initials:
	 	 	 	 	 

	 	 
	 	4.4	 	 	Continued Access to the Property.

	 	

	 	 	 	 	 

	 	

4.4.1 Access. Buyer and the Buyer Parties will have the right to enter the
Real Property, at reasonable times and at their own risk and expense, through and
including the Closing Date in order to confirm any existing or to conduct any further
studies, inquiries, or investigations or to take inventories, survey areas, monitor
conditions, prepare reports and otherwise prepare to take title to the Property, subject
to the terms and conditions of this Section 4.4; provided, however, that Buyer’s
purchase of the Property shall not be conditioned on the results of any such confirmation
or additional studies. Buyer shall not unreasonably interfere with the use of the
Property by any existing tenant, licensee or other occupant of the Real Property under any
Existing Lease (“Existing Occupants,” which definition shall not include LUT) or any
tenant, licensee, or other occupant of the Property under any Lease entered into after the
Effective Date as authorized herein (“New Occupant” and together with the Existing
Occupants, “Occupants”). Buyer shall not unreasonably interfere with Seller’s or its
affiliates’ use of the Property. Buyer shall not conduct any invasive or intrusive
testing, studies, or investigations, such as a phase two environmental assessment, without
Seller’s prior written consent. Buyer shall provide Seller with reasonable prior written
notice (or notice by electronic mail) of its desire to enter the Real Property for such
purpose, which notice shall include a description of the activities to be performed and
the areas of the Real Property to be accessed during such entry, and Buyer shall
coordinate all such entry in advance with Cheryl Mauer, a representative of CP Management
I, LLC, Seller’s Property Manager (“Property Manager”), or any other representative that
Seller may designate from time to time in writing to Buyer. Seller reserves the right to
have Cheryl Mauer or any other representative of Seller or Property Manager present at all
times during any such access, and Seller shall use commercially reasonable efforts to have
such representative available on the next business day following Buyer’s request during
normal business hours. Buyer acknowledges that its access to certain Occupant spaces
within the Real Property may be prohibited or limited by that Occupant’s Lease, or may
require Buyer to execute a non-disclosure or confidentiality agreement. Buyer agrees that
it shall not have access to such spaces unless it complies with such limitations and
executes any reasonable non-disclosure or confidentiality agreement as required by the
Occupant. As a condition of such entry, Buyer agrees to (a) obtain, carry and provide
evidence to Seller of not less than Two Million and No/100 Dollars ($2,000,000.00) worth
of commercial general liability insurance with a contractual liability endorsement
insuring Buyer’s indemnity obligations hereunder, (b) pay when due all costs of activities
performed by Buyer or the Buyer Parties in connection with such activities, (c) restore
promptly any physical damage caused by such activities, and (d) defend, indemnify and save
Seller and the Seller Parties harmless from any and all liabilities, costs, damages,
expenses (including, but not limited to, attorneys’ fees and other professional fees and
disbursements), claims, suits, actions, and losses of every name, kind and description by
any person or entity as a result of or on account of any actual or alleged injuries or
damages to persons or property received or sustained, or any liens filed against the
Property (collectively, “Claims”) incurred by or made or brought against Seller or any of
the Seller Parties which Claims in any way arise out of, in connection with, or as a
result of the acts or omissions of Buyer or the Buyer Parties in exercising Buyer’s rights
under this Section 4.4; provided that Buyer shall have no liability for any
preexisting condition on the Property that is discovered during Buyer’s inspections,
except to the extent that Buyer or any Buyer Party exacerbates any such preexisting
condition. Without limiting the generality of the foregoing, Buyer assumes all liability
for actions brought by any of the Buyer Parties. The obligations set forth in this
Section 4.4 shall survive the expiration or any termination whatsoever of this
Agreement and shall survive Closing.

4.4.2 [Intentionally Deleted].

ARTICLE 5. REPRESENTATIONS, WARRANTIES AND COVENANTS

5.1 Definitions. As used in this Agreement, including this Article 5:

5.1.1 The phrase “to Seller’s knowledge,” means the present, actual knowledge,
without any duty of inquiry or investigation other than to review the accuracy of the
representation and warranty with Cheryl Mauer, Seller’s Property Manager, of (a) Hassan
Natha, Chief Financial Officer of Seller and (b) Robert Dunlop, Executive Vice
President-Operations of Seller. Such persons have not undertaken or inquired into any
independent investigation or verification of the matters set forth in any representation
or warranty, including without limitation an investigation or review of any documents,
certificates, agreements or information that may be in, or may hereafter come into, the
possession of Seller or any of the Seller Parties. Buyer acknowledges that the
individuals named above are named solely for the purpose of defining and narrowing the
scope of Seller’s knowledge and not for the purpose of imposing any liability on or
creating any duties running from such individuals to Buyer. Buyer covenants that it will
not bring any action of any kind against such individuals related to or arising out of any
representations and warranties made by Seller herein except in connection with any fraud
action;

5.1.2 “Environmental Laws” means the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, the Superfund Amendments and Reauthorization Act
of 1986, the Resource Conservation and Recovery Act, the Toxic Substance Control Act, and
the Washington Model Toxics Control Act, all as amended, or any other similar state,
local, or federal environmental law and any rules and regulations promulgated thereunder;

5.1.3 “Hazardous Materials” means any chemical, substance, material, controlled
substance, object, condition, waste, living organisms or combination thereof that is or
may be hazardous to human health or safety or to the environment due to its radioactivity,
ignitability, corrosiveness, reactivity, explosivity, toxicity, carcinogenicity,
mutagenicity, phytotoxicity, infectiousness or other harmful or potentially harmful
properties or effects, including, without limitation, petroleum hydrocarbons and petroleum
products, lead, asbestos, radon, polychlorinated biphenyls (PCBs) and all of those
chemicals, substances, materials, controlled substances, objects, conditions, wastes,
living organisms or combinations thereof that are listed, defined or regulated as of the
Effective Date in any manner by any Environmental Law based upon, directly or indirectly,
such properties or effects;

5.1.4 “Exception Matter” means (a) any matters disclosed by the Due Diligence
Materials, (b) any matter of which Buyer or the Buyer Parties have actual knowledge prior
to Closing, “actual knowledge” meaning anything clearly described in any written document
given to or obtained by Buyer or the Buyer Parties in connection with the transactions
contemplated in this Agreement, and (c) any waived misrepresentations (pursuant to
Section 5.3); and

5.1.5 The phrases “commercially reasonable efforts” and “commercially reasonable
steps” shall not impose any obligation to institute legal proceedings or to expend any
monies therefor.

5.2 Seller’s Representations and Warranties. Seller represents and warrants the following
to Buyer as of the Effective Date. Each of such representations and warranties shall be deemed
remade on and as of the Closing Date.

5.2.1 Due Formation and Authorization. Seller is duly organized and validly
existing under the laws of the State of Washington, is qualified to do business in the
State of Washington, and has all requisite power, authority and legal right to execute,
deliver and perform the terms of this Agreement. This Agreement and all documents to be
executed by Seller in connection herewith constitute, or will constitute when executed and
delivered, valid and legally binding obligations of Seller enforceable in accordance with
their terms. Each individual executing this Agreement on behalf of Seller is duly
authorized to do so.

5.2.2 Consent. No consent, approval or authorization by any individual,
entity, court, administrative agency or other governmental authority is required in
connection with the execution and delivery of this Agreement or the consummation of the
transactions contemplated herein by Seller other than those consents, approvals and
authorizations that shall be obtained by Seller prior to Closing. As of Closing, the
consummation of the transactions contemplated by this Agreement will not result in a
breach of, or constitute a default under any agreement or other instrument to which Seller
is a party or by which Seller is bound or affected.

5.2.3 Existing Leases. As of the Effective Date, there are no existing
leases, occupancy licenses or other occupancy agreements affecting the Real Property to
which Seller is a party except as set forth on EXHIBIT E attached hereto
(collectively, “Existing Leases,” which definition shall not include the LUT Lease).
Seller has not given to or received from any Existing Occupant under any Existing Lease
written notice of default where such default remains uncured as of the Effective Date, and
to Seller’s knowledge there exists no continuing Default (as defined in such Existing
Lease) under any Existing Lease as of the Effective Date. True, complete and correct
copies of all Existing Leases and any amendments thereto were delivered or made available
to Buyer prior to the Effective Date as a part of the Due Diligence Materials. The rent
roll attached as a part of EXHIBIT E represents, as of the Effective Date, true,
complete and accurate information regarding the rent schedule, the amount of security
deposits and letters of credit held by Seller and the amount of prepaid rent paid to or
held by Seller for each Existing Lease. There are no Leasing Costs (hereinafter defined)
payable as of the Effective Date except as set forth on EXHIBIT E.

5.2.4 Service Contracts. As of the Effective Date, there are no management,
maintenance, service agreements pertaining to the Property to which Seller is a party
except as set forth on EXHIBIT F attached hereto (“Existing Service Contracts”).
Seller has not given to or received from any party under any Existing Service Contract
written notice of default where such default remains uncured as of the Effective Date, and
to Seller’s knowledge there exists no continuing Default (as defined in such Existing
Service Contract) under any Existing Service Contract as of the Effective Date. True,
complete and correct copies of all Existing Service Contracts and any and all amendments
thereto were delivered or made available to Buyer prior to the Effective Date as a part of
the Due Diligence Materials.

5.2.5 Litigation; Violation of Laws. Seller has not received written notice
of (a) any pending lawsuits affecting all or any material portion of Seller’s interest in
the Property, (b) any pending judicial, municipal or administrative proceedings in eminent
domain affecting all or any material portion of Seller’s interest in the Property, (c)
except as described in the Due Diligence Materials, any violation of any term or condition
of any Permit, or (d) except as described in the Due Diligence Materials, any violation
of law affecting all or any material portion of the Property, including, without
limitation, any violation of any applicable fire, health, building, use, occupancy, or
zoning laws or any other governmental regulation.

5.2.6 Environmental Reports. A true and complete copy of the Phase I
Environmental Site Assessment referenced in EXHIBIT G attached hereto (“Existing
Environmental Reports”) was delivered or made available to Buyer prior to the Effective
Date as a part of the Due Diligence Materials.

5.2.7 Environmental Condition. Buyer acknowledges that (a) Seller and LUT
have used and stored, currently use and store and will continue to use and store certain
chemicals, substances and materials in their operations of the heliport that may be
considered Hazardous Materials, including but not limited to fuel and (b) Seller has used
and stored, currently uses and stores and will continue to use and store reasonable
quantities of chemicals, substances and materials that may be considered Hazardous
Materials as are customarily maintained on-site by office, data center/network operations
center, broadcast, retail, media, carrier and co-location tenants and as may be reasonably
necessary for Seller to conduct all normal operations conducted by Seller with respect to
the Property. Except as disclosed in the Existing Environmental Reports, any other Due
Diligence Materials or this Section 5.2.7, (a) Seller has not, as of the Effective Date,
generated, manufactured, refined, transported, stored, handled, disposed of or released
any Hazardous Material on, in, from or onto the Property and will not intentionally take
any of the foregoing actions after the Effective Date and prior to Closing, except in
compliance with all Environmental Laws (provided, however, that Seller makes no
representation or warranty with respect to any of the foregoing by LUT or any Occupant),
(b) Seller has not received any written notice from any governmental agency of any
violation of any Environmental Laws at the Real Property that has not be corrected, (c) no
action has been commenced to Seller’s knowledge regarding the presence of any Hazardous
Material on or about the Real Property, and (d) no above- or below-ground tanks used for
the storage of any Hazardous Material are present on the Real Property, other than those
described in the Existing Environmental Reports included as a part of the Due Diligence
Materials.

5.2.8 Existing Guaranties and Warranties. To Seller’s knowledge, all of the
guaranties and warranties affecting the Property are referenced in EXHIBIT H
attached hereto (“Existing Warranties”).

5.2.9 Special Assessments. Except as noted in the Title Report to Seller’s
knowledge, no special assessments have been levied against the Real Property and Seller
has received no notice of any proposed special assessments that may be levied against the
Real Property.

5.2.10 Foreign Person. Seller is not a foreign corporation as defined in
Section 1445 of the Internal Revenue Code of 1986, as amended (“IRC”).

5.2.11 ERISA. Neither Seller nor Fisher Communications is an “employee
benefit plan” within the meaning of 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), a “plan” within the meaning of Section 4975 of the IRC, or an
entity deemed to hold “plan assets” within the meaning of 29 C.F. R. §2510.3-101 (as
modified by Section 3(42) of ERISA of any such plan.

5.2.12 Patriot Act.

(a) Seller is in compliance with the requirements of Executive Order No. 13224, 66 Fed. Reg.
49079 (Sept. 25, 2001) (the “Order”) and other similar requirements contained in the rules and
regulations of the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and in any
enabling legislation or other Executive Orders or regulations in respect thereof (the Order and
such other rules, regulations, legislation, or orders are collectively called the “Orders”).

(b) To Seller’s knowledge, neither Seller nor any owner of more than 10% of the beneficial
interests in Seller, nor, to Seller’s knowledge, any beneficial owner of Seller:

(i) is listed on the Specially Designated Nationals and Blocked Persons List maintained
by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist
organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to
any other applicable Orders (such lists are collectively referred to as the “Lists”);

(ii) is a person or entity who has been determined by competent authority to be subject
to the prohibitions contained in the Orders; or

(iii) is owned or controlled by, or acts for or on behalf of, any person or entity on
the Lists or any other person or entity who has been determined by competent authority to be
subject to the prohibitions contained in the Orders.

The above representations and warranties of Seller (other than any Exception Matter) shall
survive the Closing Date for a period of twelve (12) months. If Buyer fails to bring any Claim
within such time period based on Seller’s breach of such representations and warranties (regardless
of when the breach was discovered), such Claim shall be forever barred.

5.3 Incorrect Seller Representation or Warranty. If Buyer learns before the Closing Date
that any representation or warranty of Seller herein is materially incorrect or materially
misleading, Buyer shall notify Seller of such incorrectness within one (1) business day of Buyer’s
discovery thereof, failing which the incorrect representation or warranty shall be deemed waived.
Upon timely receiving such notification, Seller shall have the right to take such action as
necessary to render the incorrect representation or warranty correct. If Seller fails to notify
Buyer that Seller will take corrective action within one (1) business day of receiving Buyer’s
notice, Buyer’s sole and exclusive remedy shall be to terminate this Agreement by giving notice to
Seller within one (1) business day after Seller notifies Buyer that Seller will not take corrective
action (or the expiration of Seller’s one (1) business day response period if Seller does not
respond). If Buyer terminates this Agreement pursuant to this Section 5.3, such
termination shall have the same effect as a termination pursuant to Section 3.1.2.3 above
(except the last sentence thereof). Additionally, Seller shall pay Buyer, within five (5) business
days after Buyer’s written notice demanding payment, the amount of Two Hundred Thousand and No/100
DOLLARS ($200,000.00) as liquidated damages (and not as a penalty) (“Liquidated Damage Payment”)
for Seller’s breach of this Section 5.3, which payment shall be in lieu of, and as full
compensation for, all other rights or Claims of Buyer against Seller by reason of such breach, and
which payment the parties agree represents a fair estimation of Buyer’s potential damages, which
would otherwise be difficult to ascertain. If Buyer does not timely terminate this Agreement
pursuant to this Section 5.3, the incorrect representation or warranty shall be deemed waived.

5.4 Buyer’s Representations and Warranties. Buyer hereby represents and warrants the
following to Seller as of the Effective Date. Each of such representations and warranties shall be
deemed remade on and as of the Closing Date.

5.4.1 Due Formation and Authorization. Buyer is duly organized and validly
existing under the laws of the state of its formation, and has all requisite power,
authority and legal right to execute, deliver and perform the terms of this Agreement.
This Agreement and all documents to be executed by Buyer in connection herewith
constitute, or will constitute when executed and delivered, valid and legally binding
obligations of Buyer enforceable in accordance with their terms. Each individual
executing this Agreement on behalf of Buyer is duly authorized to do so.

5.4.2 Consent. No consent, approval or authorization by any individual or
entity or any court, administrative agency or other governmental authority is required in
connection with the execution and delivery of this Agreement or the consummation of the
transactions contemplated by this Agreement by Buyer. The consummation of the
transactions contemplated by this Agreement will not constitute a breach of, or constitute
a default under, any agreement or other instrument to which Buyer is a party or by which
Buyer is bound or affected.

5.4.3 Patriot Act.

(a) Buyer is in compliance with the requirements of the Order and other similar requirements
contained in the rules and regulations of OFAC and in any enabling legislation or other Orders.

(b) Neither Buyer nor any owner of more than 10% of the beneficial interests in Buyer, nor, to
Buyer’s knowledge, any beneficial owner of Buyer:

(i) is listed on the Lists;

(ii) is a person or entity who has been determined by competent authority to be subject
to the prohibitions contained in the Orders; or

(iii) is owned or controlled by, or acts for or on behalf of, any person or entity on the
Lists or any other person or entity who has been determined by competent authority to be subject to
the prohibitions contained in the Orders.

5.4.4 Buyer Affiliation. Buyer is a limited liability company having Hines
Global REIT Properties LP as its sole member. Hines Global REIT Properties LP is the
operating partnership for Hines Global REIT, Inc.

5.5 Seller’s Covenants.

5.5.1 Estoppel Certificates. Seller agrees to request estoppel certificates
from all of the Existing Occupants substantially in the form of EXHIBIT I-1
attached hereto (or in such other form as an Existing Lease may require) within two (2)
business days after the Effective Date. Seller shall use commercially reasonable efforts
to obtain completed estoppel certificates from Existing Occupants generating or that will
generate, collectively with Fisher Communications under the Fisher Lease, at least eighty
percent (80%) of the rental revenue of the Property (the “Threshold Estoppels”) (except
that Seller shall have no obligation to pay any sums to any Existing Occupants in
connection with its efforts). Upon Buyer’s request, Seller shall provide updates on the
status of the estoppel certificates. If Seller is unable to obtain such estoppel
certificates from Existing Occupants by November 29, 2011 (unless Buyer has extended the
Closing Date to December 15, 2011 in accordance with Section 7.1 below, then by
December 15, 2011) after using the efforts described herein, then Seller may complete and
execute estoppel certificates at Closing as “Landlord,” substantially in the form of
EXHIBIT I-2 attached hereto, for such Existing Occupants (but not for the Existing
Occupants listed on Schedule 1 of EXHIBIT I-1, unless Seller has extended the
Closing Date to December 30, 2011 pursuant to Section 7.1 below) and, in this
event, such “Landlord” estoppels shall be deemed Threshold Estoppels.

5.5.2 Leases. From the Effective Date until the Closing Date, Seller shall
comply with the terms and conditions of all Existing Leases in all material respects.
From the Effective Date until the Closing Date, Seller shall not execute any additional
lease, occupancy license or other occupancy agreement or amend, modify, renew, extend or
terminate any of the Existing Leases in any material respect without the prior approval of
Buyer, which approval shall not be unreasonably withheld or conditioned, provided that
Seller acknowledges that it shall be reasonable to withhold consent if Seller’s proposed
action does not fit with Buyer’s preferred leasing parameters, financial standards, or
anticipated use of the Property after Closing. Buyer shall be deemed to have approved any
proposed additional agreement or lease modification if it neither approves nor rejects the
same within one (1) business day after Seller’s written notice to Buyer requesting the
same. If Seller executes any such additional agreement or modification without Buyer’s
approval or deemed approval, Buyer shall have the right, as its sole and exclusive remedy,
to terminate this Agreement effective upon written notice to Seller, whereupon such
termination shall have the same effect as a termination pursuant to Section
3.1.2.3 above (except the last sentence thereof). Additionally, Seller shall pay
Buyer, within five (5) business days after Buyer’s written notice demanding payment, the
Liquidated Damage Payment. Notwithstanding anything herein to the contrary, Seller shall
have the right to execute any document necessary to reserve to itself at Closing the LUT
Lease, including any assignment, modification or subordination agreements necessary to
effectuate the same, all as more particularly described in Section 5.6 below.

5.5.3 Service Contracts and Warranties. Buyer may request, by giving written
notice to Seller delivered within two (2) calendar days of the Effective Date, that any of
the Existing Service Contracts that can be terminated on sixty (60) days’ notice or less
be terminated as of Closing to the extent possible. Buyer shall assume all Existing
Service Contracts that cannot be terminated upon sixty (60) days’ notice or less and all
other Existing Service Contracts not identified in Buyer’s notice to be terminated.
Seller shall use commercially reasonable efforts to cause any Existing Service Contract
identified by Buyer to be terminated upon the Closing or as soon as possible thereafter
(and this Section 5.5.3 shall survive Closing if necessary for the foregoing
purpose). Seller shall assign its interest in any assignable Service Contracts (not
terminated pursuant to the foregoing sentences) and any assignable Existing Warranties to
Buyer at Closing and Buyer shall assume Seller’s obligations thereunder. To the extent
any such assignment requires the consent of the other party to the Service Contract or
Existing Warranty, Seller shall use commercially reasonable efforts to obtain such consent
prior to the Closing, but a failure to obtain such consent shall not be a Seller default
under this Agreement. If any such consent is not obtained prior to the Closing, Seller
agrees to use commercially reasonable efforts to help Buyer obtain such consent after the
Closing Date (and this Section 5.5.3 shall survive Closing if necessary for the
foregoing purpose). If Seller must pay any consideration as a condition to the
termination of any Service Contract requested by Buyer (including any termination fee of
more than One Thousand Dollars ($1,000.00)), or as a condition of any consent necessary to
assign a Service Contract or any Existing Warranty hereunder, Seller shall have no
obligation to incur any such expense or pay any such consideration, unless Buyer agrees to
reimburse Seller for such expense or payment.

From the Effective Date until the Closing Date, Seller shall not amend any of the Existing
Service Contracts or become a party to any new service contracts without the prior approval of
Buyer, which approval shall not be unreasonably withheld or conditioned, and Seller further
covenants that any new service contracts shall be terminable on not more than thirty (30) days
notice. Buyer shall be deemed to have approved any proposed amendment or new contract if it
neither approves nor rejects the same within one (1) business day after Seller’s written notice to
Buyer requesting the same. If Seller executes any such amendment or new service contract without
Buyer’s approval or deemed approval, Buyer shall have the right, as its sole and exclusive remedy,
to terminate this Agreement effective upon written notice to Seller, whereupon such termination
shall have the same effect as a termination pursuant to Section 3.1.2.3 above (except the last
sentence thereof). Additionally, Seller shall pay Buyer, within five (5) business days after
Buyer’s written notice demanding payment, the Liquidated Damage Payment.

5.5.4 Permits. From the Effective Date until the Closing Date, Seller shall
not terminate, allow to lapse or amend in any material way any of the Permits without the
prior approval of Buyer, which approval shall not be unreasonably withheld or conditioned;
provided however, that if any such action is necessary for the continued operation of the
Property, such action shall be deemed approved and Seller further covenants not to
voluntarily terminate any existing Permit. Buyer shall also be deemed to have approved
any proposed termination, lapse or amendment if it neither approves nor rejects the same
within one (1) business day after Seller’s written notice to Buyer requesting the same.
If Seller terminates, allows to lapse or amends any Permit without Buyer’s approval or
deemed approval, Buyer shall have the right, as its sole and exclusive remedy, to
terminate this Agreement effective upon written notice to Seller, whereupon such
termination shall have the same effect as a termination pursuant to Section
3.1.2.3 above (except the last sentence thereof). Additionally, Seller shall pay
Buyer, within five (5) business days after Buyer’s written notice demanding payment, the
Liquidated Damage Payment.

All Transferable Permits shall be transferred to Buyer by a General Assignment at Closing
pursuant to Section 7.2 below. With respect to the Process Permits, Seller shall take
commercially reasonable steps to obtain all necessary approvals and take commercially reasonable
steps to transfer the Process Permits to Buyer on or before the Closing Date, provided that failure
to obtain such approvals or complete such transfers shall not be deemed a Seller default under this
Agreement. Instead, if any such approvals are not obtained or transfers completed prior to the
Closing, Seller agrees to use commercially reasonable efforts to help Buyer obtain such approvals
and complete such transfers after the Closing Date or to help Buyer obtain new or replacement
permits if such approvals cannot be obtained or if such transfers cannot be completed (and this
Section 5.5.4 shall survive Closing if necessary for the foregoing purpose).

5.5.5 Other Encumbrances. Except as authorized herein, after the Effective
Date, Seller shall not cause or create any new encumbrances that may affect title to the
Property after the Closing Date.

5.5.6 Operation and Maintenance of Property. Between the Effective Date and
the Closing Date, Seller shall (a) operate the Property in substantially the same manner
in which Seller operated the Property immediately prior to the Effective Date (although
Seller shall not have an obligation to purchase, lease or install prior to Closing any
capital improvements or to incur other expenditures not incurred in the ordinary course of
business unless required by any of the Existing Leases), and (b) maintain the Property in
substantially its present order and condition, reasonable wear and tear excepted and
subject to casualty and condemnation.

5.5.7 Insurance. Until the Closing, Seller shall keep the Property insured
against fire, vandalism and other loss, damage and destruction to the same extent as it
has customarily insured the same. Seller’s insurance policies shall not be assigned to
Buyer at Closing; Buyer shall be obligated to obtain its own insurance coverage from and
after Closing.

5.5.8 Plaza Systems. Buyer acknowledges that Seller and its affiliates
currently provide, as a convenience, to various Occupants in the Buildings (a) certain
telecommunications services to accommodate such Occupants’ telephone, facsimile and
similar needs and (b) certain wireless network services to accommodate such Occupants’
wireless needs. Various equipment, lines, infrastructure and other appurtenances thereto
are installed in both Buildings to provide such telecommunications services (collectively,
“Plaza Telecom System”) and various equipment, lines, routers, infrastructure and other
appurtenances are installed in both Buildings to provide such wireless services
(collectively, “PlazaNet System”). Seller shall have the right to continue providing both
services to Occupants’ after the Closing Date for a period of up to twelve (12) months
(“Transition Period”) in order to provide reasonable notice to Occupants that such systems
will be shut down and to provide a reasonable opportunity for Occupants to secure
replacement services. The foregoing shall not impose any obligation on Seller to continue
providing either service, and Seller may elect, in its sole discretion, to discontinue
providing either or both services to any or all Occupants at any time after the Closing
Date. Seller shall also have the right, but not the obligation, to continue using one or
both of such systems during and after the Transition Period for the business operations of
Seller and its affiliates until such time as Seller and its affiliates no longer require
use of such systems. If Seller elects to continue providing one or both of such services
to Occupants after Closing or elects to continue using one or both of such systems after
Closing, Seller shall remain responsible for operating, maintaining and repairing the
Plaza Telecom System and PlazaNet System (as applicable) until the same are completely
shutdown, at which time Seller shall not be required to remove either system, but shall be
allowed to leave both systems in place (or, at Seller’s or its affiliates’ election, to
decommission and remove the same). Seller acknowledges that both services produce only
nominal income after deducting the operational costs associated with the same; however,
Buyer agrees that in consideration of any continued operations of such services for the
convenience of the Occupants and Seller’s continued responsibility therefor, Seller shall
be entitled to retain any such income earned during any Transition Period. This
Section 5.5.8 shall survive Closing

5.5.9 Project Cabling. Seller and Buyer hereby acknowledge that portions of
the building management control systems for the Buildings and security system for the
Project utilize structured cabling located within the premises demised by the Fisher Lease
(“Security Lines”). Additionally, certain Existing Leases authorize certain Existing
Occupants to use cabling installed and used by Seller or its affiliates throughout the
Project (to the extent used by Existing Occupants, “Connection Lines,” and together with
the Security Lines, “Shared Lines”). The parties shall reasonably cooperate with one
another in good faith to reroute Security Lines outside of the Premises demised by the
Fisher Lease and to identify and separate any Connection Lines from those lines, cables
and other conduits that will continue to be used by Seller and its affiliates after
Closing as soon as practicable after Closing (but in no event later than six (6) months
thereafter, unless Seller has failed to reasonably cooperate in good faith with respect to
the rerouting and separation, in which case, the six (6) month period shall be extended as
reasonably necessary to complete such work). The parties acknowledge that it may be more
cost effective to install new lines for either or both of the foregoing purposes. The
parties shall equally share in the actual, out-of-pocket third party costs of rerouting
and separating the Shared Lines (and/or installing new lines); provided, however, that
Buyer shall bear the first Ten Thousand and No/100 Dollars ($10,000.00) of such costs and
Seller shall bear the next Forty Thousand and No/100 Dollars ($40,000.00) of such costs.
Until the earlier of six (6) months after Closing (unless Seller has failed to reasonably
cooperate in good faith with respect to the rerouting and separation, in which case, the
six (6) month period shall be extended as reasonably necessary to complete such work) or
such date that all Shared Lines can be rerouted and separated (or new lines installed),
Seller shall indemnify Buyer for any Claims that arise out of any damage to such Shared
Lines to the extent caused by Seller and its affiliates; provided, however, that if Seller
or its affiliates cease use of any Connection Lines at any time, Seller shall notify Buyer
of the same (which notice shall include sufficient detail regarding the location of the
applicable Connection Lines as to make them readily identifiable by Buyer) and Buyer shall
immediately become the owner thereof and responsible therefor. Any Connection Lines that
will be used by Seller or its affiliates after Closing shall be retained by Seller until
Seller ceases use thereof. All other Shared Lines that will not be used after Closing by
Seller or its affiliates shall immediately become the property and responsibility of
Buyer.

5.6 Buyer’s Covenants. Buyer acknowledges that Seller is reserving to itself at Closing
the LUT Lease, assigning the LUT Lease to Fisher Communications and subordinating the LUT Lease to
the Fisher Lease, such that the LUT Lease will become a sublease of the Fisher Lease; however,
Seller confirms that the portion of the Property demised by the LUT Lease is being transferred to
Buyer as part of the Real Property and then being leased to Fisher Communications. If requested by
Seller, Buyer shall promptly (and, if requested, before the Closing Date) execute any and all
reasonable modification or subordination agreements between Fisher (or its affiliates) and LUT to
effectuate the foregoing. Buyer further agrees that, if Seller does not request any such
agreements, then in the event that the Fisher Lease is terminated for any reason before the
expiration of the LUT Lease, Buyer shall not disturb LUT’s occupancy under the LUT Lease and shall
execute all documents necessary to allow such continued occupancy under the same terms and
conditions contained in the LUT Lease, so long as LUT is not in default under the LUT Lease beyond
any applicable notice and cure periods. This Section 5.6 shall survive Closing.

5.7 Leaseback of Fisher Occupied Space. As a material part of Seller’s willingness to sell
the Property to Buyer, Seller has required that Buyer lease back to Fisher Communications the
Fisher Occupied Space and the other space and rights at the Real Property described as follows: (a)
exclusive possession of the heliport located on the rooftop of Fisher Plaza East, (b) the right to
continue using the existing dishes and antennas on the rooftop of the Buildings that Seller and its
affiliates have located thereon as of the Effective Date and the right to install such additional
satellite dishes and antennas as Seller and its affiliates may reasonably require to accommodate
their future operational needs, all without interference from future users of such rooftop space,
(c) the right to continue using parking stalls in the Parking Structure, (d) the right to continue
using storage space in the Parking Structure for Fisher Communication’s and its affiliates’
continued storage needs and the housing of refueling and support facilities associated with the
heliport, and (e) the ability to maintain naming rights over Fisher Plaza and the Buildings, all as
outlined in the Fisher Lease, the Rooftop Easement and the Storage Space Agreement (all defined
below). For the foregoing purposes and in full satisfaction of the foregoing obligation, Buyer and
Fisher Communications shall enter into (x) a lease at Closing in the form of EXHIBIT J
attached hereto (“Fisher Lease”) to lease back the Fisher Occupied Space and to grant the rights
described in clauses (c) and (e) above, a memorandum of which shall be recorded at Closing
in a form mutually agreed upon by the parties (“Fisher Lease Memo”), (y) an easement at Closing in
the form of EXHIBIT K attached hereto (“Rooftop Easement”) to grant and protect the
heliport and rooftop rights described in clauses (a) and (b) above, and (z) a separate
agreement to use the storage space described in clause (d) above, the form of which is
attached to the Fisher Lease (“Storage Space Agreement”). Neither party shall make any
modifications to the form of Fisher Lease or the form of Rooftop Easement attached hereto after the
Effective Date without the prior written consent of the other party hereto.

ARTICLE 6. CONDITIONS TO CLOSING

6.1 Seller’s Conditions to Closing. Seller’s obligation to close the transactions
contemplated by this Agreement is conditioned on all of the following, any or all of which may be
waived by Seller in writing, at its sole option:

6.1.1 All representations and warranties made by Buyer in this Agreement shall be
true and correct in all material respects on and as of the Closing Date, as if made on and
as of such date, except to the extent they expressly relate to an earlier date and except
for those already qualified by materiality that shall be true and correct in all respects;
and

6.1.2 Buyer shall have delivered Buyer’s Closing Payment and all of the documents
required to be executed by Buyer into Escrow as required, and Buyer shall have performed
in all material respects all of its other obligations hereunder required to be performed
by the Closing Date, and complied with all conditions, required by this Agreement to be
performed or complied with by Buyer at or prior to the Closing.

6.2 Buyer’s Conditions to Closing. Buyer’s obligation to close the transactions
contemplated by this Agreement is conditioned on all of the following, any or all of which may be
waived by Buyer in writing, at its sole option:

6.2.1 All representations and warranties made by Seller in this Agreement shall be
true and correct in all material respects on and as of the Closing Date, as if made on and
as of such date, except to the extent they expressly relate to an earlier date and except
for those already qualified by materiality that shall be true and correct in all respects,
and except to the extent of any Exception Matter;

6.2.2 Seller shall have executed and delivered all of the documents required to be
delivered by Seller hereunder into Escrow, and shall have materially performed all of its
other obligations hereunder required to be performed by the Closing Date, and complied
with all conditions required by this Agreement to be performed or complied with by Seller
at or prior to the Closing;

6.2.3 Buyer has received (a) evidence that Seller has sent notices of termination on
all Existing Service Contracts required to be terminated pursuant to the terms of
Section 5.5.3 (provided that that actual termination may occur after Closing) and
(b) confirmation that Seller has sent termination notices to terminate any property
management agreements for the Property in effect as of the Effective Date (provided that
actual termination may occur after Closing);

6.2.4 Buyer has received estoppel certificates from the Existing Occupants listed on
Schedule 1 of EXHIBIT I-1 or has otherwise received Threshold Estoppels in
accordance with the requirements of Section 5.5.1 above or Section 7.1
below; and

6.2.5 Title Company shall be irrevocably committed to issue Buyer’s Policy and Title
Company is irrevocably bound and committed to issue extended coverage, subject only to the
payment of the applicable costs therefor and the delivery of the required documents from
Seller.

In the event of the failure of any of Buyer’s conditions to close hereunder, Buyer shall have the
right to terminate this Agreement and such termination shall have the same effect as a termination
pursuant to the last sentence of Section 3.1.2.3.

ARTICLE 7. CLOSING

7.1 Closing Procedure. The transaction contemplated in this Agreement will be closed
(“Closing”) in Escrow by Escrow Agent on December 1, 2011 (“Closing Date”); provided, however,
Buyer shall have the right to unilaterally extend the Closing Date to December 15, 2011 if Buyer
has not received the Threshold Estoppels upon delivery of written notice to Seller and Escrow Agent
no later than November 29, 2011 and payment of the Extension Deposit as required below. Upon
receiving such notice, Seller shall open a separate escrow account with Title Company and notify
Buyer thereof (which may occur by email). Buyer shall thereafter deposit an extension fee into
such separate account in the amount of Twenty Million and No/100 Dollars ($20,000,000.00)
(“Extension Deposit”) by the end of the next business day following Buyer’s receipt of Seller’s
notice, which Extension Deposit shall be non-refundable except as expressly provided herein and
shall represent additional consideration for Seller’s extension of the Closing Date. Failure to
timely make such Extension Deposit or otherwise timely close shall constitute a material breach of
this Agreement. The Extension Deposit shall be considered separate and apart from the “Deposit”
for all purposes hereunder, but shall be applicable to the Purchase Price at Closing. In addition
to the foregoing, Seller shall have the right, upon delivery of written notice to Buyer and Escrow
Agent, to unilaterally extend the Closing Date to December 30, 2011 if Seller has not been able to
obtain estoppel certificates from the Existing Occupants listed on Schedule 1 of EXHIBIT
I-1; provided, however, that if Seller sooner obtains such estoppel certificates, Closing shall
occur as soon as practicable thereafter. Notwithstanding anything in this Agreement to the
contrary, if Seller has extended the Closing Date and made the efforts required herein to obtain
estoppel certificates from the Existing Occupants listed on Schedule 1 of EXHIBIT I-1, then
Closing shall occur on December 30, 2011 regardless of whether Seller has obtained such estoppel
certificates. If the transaction contemplated by this Agreement fails to close by the Closing Date
(as may be extended as noted above), this Agreement, and all of Buyer’s rights with respect to the
acquisition of the Property, shall terminate, the parties shall have the rights and obligations as
provided in Article 9, and upon request, Escrow Agent shall return to the parties,
respectively (except as otherwise provided herein), the documents and funds deposited into Escrow.

7.2 Deposits into Escrow.

7.2.1 By Seller. At least one (1) business day prior to the Closing Date,
Seller shall deposit into Escrow (except as noted below):

(a) The original Deed in the form of EXHIBIT L attached hereto, duly executed by
Seller and acknowledged;

(b) Two (2) original counterparts of a Bill of Sale in the form of EXHIBIT M attached
hereto, duly executed by Seller, with respect to the Tangible Personal Property, if any (“Bill of
Sale”);

(c) Two (2) original counterparts of an Assignment and Assumption Agreement in the form of
EXHIBIT N attached hereto, duly executed by Seller and acknowledged, with respect to the
Leases and Service Contracts (“Assignment and Assumption Agreement”);

(d) Two (2) original counterparts of a General Assignment in the form of EXHIBIT O
attached hereto, duly executed by Seller, with respect to the Intangible Personal Property,
Existing Warranties and Transferable Permits (“General Assignment”);

(e) Two (2) original counterparts of the Fisher Lease, executed by Seller and acknowledged;

(f) Two (2) original counterparts of the Fisher Lease Memo, executed by Seller and
acknowledged;

(g) Two (2) original counterparts of the Rooftop Easement, executed by Seller and
acknowledged;

(h) Two (2) original counterparts of the Storage Space Agreement, executed by Seller and
acknowledged;

(i) An affidavit that satisfies the requirements of Section 1445 of the IRC, and the
regulations thereunder;

(j) A counterpart of a notice to each Occupant at the Real Property in the form of EXHIBIT
P attached hereto, executed by Seller and delivered outside of Escrow to Buyer, which Buyer
shall countersign and deliver directly to the Occupants immediately following Closing;

(k) Two (2) original counterparts of a real estate excise tax affidavit (“REETA”), duly
executed by Seller;

(l) Two (2) original counterpart of the Reimbursement Agreement in the form substantially
attached hereto as EXHIBIT Q (“Reimbursement Agreement”), executed by Seller; and

(m) One (1) original counterpart of any customary affidavits and other documents as may be
reasonably required by the Title Company to consummate the transaction contemplated by this
Agreement, including a customary seller’s affidavit, all in forms reasonably approved in advance by
Seller.

7.2.2 By Buyer. At least one (1) business day prior to the Closing Date,
Buyer shall deposit into Escrow:

(a) Buyer’s Closing Payment, as required in Section 2.2.2;

(b) Two (2) original counterparts of the Assignment and Assumption Agreement duly executed by
Buyer and acknowledged;

(c) Two (2) original counterparts of the General Assignment duly executed by Buyer;

(d) Two (2) original counterparts of the Fisher Lease, executed by Buyer and acknowledged;

(e) Two (2) original counterparts of the Fisher Lease Memo, executed by Buyer and
acknowledged;

(f) Two (2) original counterparts of the Rooftop Easement, executed by Buyer and acknowledged;

(g) Two (2) original counterparts of the Storage Space Agreement, executed by Buyer and
acknowledged;

(h) Two (2) original counterparts of a REETA, duly executed by Buyer; and

(i) Two (2) original counterparts of the Reimbursement Agreement, duly executed by Buyer.

7.2.3 Other Documents. Seller and Buyer shall each deposit such other
instruments and funds as are reasonably required by Escrow Agent or otherwise required to
close the sale of the Property in accordance with the terms of this Agreement.

7.3 Closing Costs and Other Expenses. The expenses and costs of the transactions
contemplated herein shall be paid as follows:

7.3.1 Advisors. Except as otherwise provided herein, each party hereto will
pay all of its own expenses incurred in connection with this Agreement and the
transactions contemplated hereby, including, without limitation, (a) all costs and
expenses stated herein to be borne by such party and (b) all of its own respective
accounting, legal, Advisor and appraisal fees.

7.3.2 Seller’s Expenses. Seller shall pay (a) all real estate excise taxes,
(b) the cost of an ALTA owner’s standard coverage policy of title insurance, (c) the cost
of any Seller’s Policy requested by Seller, and (d) one-half ( 1/2) of any escrow fees.

7.3.3 Buyer’s Expenses. Buyer shall pay all costs, expenses and fees
incurred in connection with all of Buyer’s due diligence performed in connection with the
Property. Buyer shall also pay (a) all premiums associated with any extended coverage
title insurance or title endorsements requested by Buyer, (b) all fees for recording the
Deed and any other conveyance documents, (c) all use tax imposed on the transfer of all
personal property (tangible or intangible) and (d) one-half (1/2) of any escrow fees.

7.3.4 Escrow and Other Expenses. All other Closing costs, if any, shall be
borne by the parties in accordance with the local customs of King County, Washington.

7.4 Prorations. The following items and any other items customarily prorated in similar
transactions shall be adjusted and apportioned by credits to the appropriate party noted in the
Proration Statement (defined in Section 7.4.10 below) as of the Closing Date (unless
otherwise specified below), it being hereby acknowledged and agreed, that all items of income and
expense for the period prior to the Closing Date shall be for Seller’s account and all items of
income and expense for the period from and after the Closing Date shall be for Buyer’s account.

7.4.1 Taxes. General real estate taxes, personal property taxes and ad
valorem taxes (collectively, “taxes”) for periods on or before the Closing Date shall be
prorated as follows: Buyer shall receive, at Closing, a credit for the portion of taxes
paid by Buyer for the period between July 1, 2011 and December 31, 2011 during which
Seller owned the Property (computed on a per diem basis). Seller shall be responsible for
all taxes attributable to any year or portion thereof on or before June 30, 2011. No
taxes payable in any year other than 2011 shall be prorated unless Closing occurs in any
other year. Buyer shall be responsible for the payment of all taxes that become due and
payable from and after the Closing Date, regardless of the period for which such taxes are
assessed. The proration of taxes at Closing under this Section 7.4.1 shall be
final.

7.4.2 Income and Expenses. Except as otherwise set forth herein, income from
the Property other than rents described below, and ordinary operating expenses incurred by
Seller with respect to the Property, shall be prorated between Seller and Buyer as of
11:59 p.m. on the day immediately prior to the Closing Date (“Pro-Ration Date”). Seller
shall be entitled to such income and responsible for such expenses through the Pro-Ration
Date and Buyer entitled to such income and responsible for such expenses after the
Pro-Ration Date. Such expenses include, without limitation, utility charges, the cost of
Service Contracts assigned at Closing to Buyer, and sewer, janitorial, cleaning and
maintenance costs. Insurance shall not be prorated as Seller shall terminate its
insurance with respect to the Property as of the Closing Date and Buyer shall thereafter
be responsible for its own insurance.

7.4.3 Fixed and Delinquent Rents. Rents under the Leases, including fixed
rent, storage fees, license fees, use fees and all other similar income (collectively,
“Fixed Rents”), shall be addressed in the manner set forth in this Section 7.4.3.
All prepaid Fixed Rents for any period after the Pro-Ration Date shall be credited to
Buyer at Closing. All collected Fixed Rents for the month in which the Closing occurs
shall be prorated as of the Pro-Ration Date. All Fixed Rents and any Percentage Rent and
Expense Reimbursements (defined below) (collectively, “Rents”) that are due but
uncollected as of the Closing Date (“Delinquent Rents”) shall not be prorated at Closing
but shall be paid to the party entitled to receive such Delinquent Rents upon receipt of
the same by either Seller or Buyer after Closing. Buyer agrees to use commercially
reasonable efforts to collect Delinquent Rents from each Occupant remaining in possession
of its space under a Lease. Any and all amounts received by Buyer or Seller after the
Closing Date from any party owing Delinquent Rents shall be paid and applied as follows:
first, to Buyer’s or Seller’s reasonable collection costs, as applicable (including
reasonable attorneys’ fees) incurred; second, to Buyer for Rents due for the then current
month; third, to Buyer for due but unpaid Rents accruing after the Closing Date, to be
applied in the inverse order as incurred (i.e., the most recently incurred Rents paid
first); fourth, to Delinquent Rents for the month in which the Closing occurs (which sums
shall, upon such collection, be prorated between Seller and Buyer as though collected
prior to Closing); and finally, to Seller for Delinquent Rents for the period before the
month of Closing. After Closing, Seller shall be permitted to commence or pursue any
legal proceedings against any Occupant for Delinquent Rents due before Closing, but in no
event shall Seller threaten eviction of such Occupant or the termination of such
Occupant’s underlying Lease.

7.4.4 Percentage Rents. If any Occupant is obligated to pay percentage rent
or overage rent (“Percentage Rent”) under any of the Leases based upon the calendar year
or lease year in which Closing occurs (“Percentage Rent Year”), such Percentage Rent
received by Seller for the month in which Closing occurs shall be prorated between Seller
and Buyer as of the Pro-Ration Date. Buyer shall, within thirty (30) days after receipt
by Buyer from an Occupant of any Percentage Rent with respect to the Percentage Rent Year,
remit to Seller funds such that Seller will have received that portion that is equal to
the number of days that elapsed between the commencement date of the Percentage Rent Year
for such Occupant and the Closing Date, over the total number of days in such Percentage
Rent Year. If Seller has received payments of Percentage Rent based on the Percentage
Rent Year in which Closing occurs in excess of its respective share as calculated as set
forth above in this Section 7.4.4, then Seller shall promptly pay such excess to
Buyer. If Seller has received payments of Percentage Rent based on the Percentage Rent
Year in which Closing occurs below its respective share as calculated as set forth above
in this Section 7.4.4, then Buyer shall promptly pay such deficiency to Seller.
All Percentage Rent payments that are due but uncollected as of the Closing Date shall not
be prorated at Closing, but shall be considered Delinquent Rents.

7.4.5 Security Deposits. Seller shall be entitled to keep, and Buyer shall
be entitled to a credit against the Purchase Price for, the total sum of all cash security
deposits reflected as owing in the Leases that are held by Seller as of Closing. Buyer
hereby assumes the obligation to return any cash security deposits to such Occupant to the
extent that such deposits are not applied in accordance with the terms of such Occupant’s
Lease, and hereby agrees to indemnify, defend, protect and hold harmless Seller from any
claims asserted by any Occupants with respect to such security deposits to the extent
credited to Buyer at Closing. Seller shall use commercially reasonable efforts to
transfer to Buyer before Closing any security deposits in the form of a letter of credit
and the parties shall share equally the cost of any transfer fees or other charges
required in connection with same.

7.4.6 Other Tenant Charges. Any amounts payable by the Occupants under the
Leases for taxes, common area expenses, operating expenses, or any other additional rent
and charges of a similar nature relating to the Real Property (“Expense Reimbursements”),
if any, shall be prorated as of the Pro-Ration Date with Seller retaining rights to
Expense Reimbursements relating to periods on or before the Pro-Ration Date and Buyer
being entitled to Expense Reimbursements relating to periods after the Pro-Ration Date.
If the Expense Reimbursements are required to be reconciled by the landlord at the end of
the calendar year or other specified time period, Buyer shall perform such reconciliation
as and when required and shall deliver a copy thereof to Seller. In such event, Seller
shall reimburse Buyer, or Buyer shall reimburse Seller, as appropriate, for any amounts
that such party is responsible to pay or is entitled to receive as the result of any
underpayments or overpayments and based on the timing of the collection of Expense
Reimbursements. All Expense Reimbursements that are due but uncollected as of the Closing
Date shall not be prorated at Closing, but shall be considered Delinquent Rents.

7.4.7 Utilities. Buyer and Seller shall arrange for all accounts for
services at the Property for which fees are based on usage (such as utilities, gas, fuel,
water) (“Utilities”) to be transferred to Buyer’s name as of Closing. If it is not
possible to so transfer such accounts to Buyer’s name, Seller shall close the same and
Buyer shall be responsible for opening its own respective account for such Utility.
Seller shall arrange for a billing of all Utilities for all services used up to the
Pro-Ration Date and shall pay the resultant bills. If it is not possible to arrange for a
measurement of usage as of the Pro-Ration Date, Seller and Buyer shall prorate the period
between the measurement of usage closest to the Pro-Ration Date using the most recent bill
as an estimate. The parties shall thereafter perform a final proration calculation in
accordance with Section 7.4.11.

7.4.8 Leasing Costs. Seller agrees to pay or discharge at or prior to
Closing all brokerage commissions, costs of tenant improvements, legal fees and other
costs and expenses (collectively, “Leasing Costs”) that become due and payable with
respect to the Existing Leases before Closing (which may be credited to Buyer at Closing);
provided, however, that Seller shall have no obligation to pay, and as of the Closing,
Buyer shall assume the obligation to pay, (a) all other Leasing Costs payable with respect
to the Existing Leases and any options to renew, options to expand, or similar rights
therein that have not been exercised as of the Closing Date, except as otherwise noted in
Schedule 1 to EXHIBIT E, and (b) all Leasing Costs incurred with respect to any
Leases and renewals, extensions, expansions, or similar rights therein and amendments
thereto and terminations thereof approved by Buyer and executed subsequent to the
Effective Date. If prior to the Closing Seller has paid any of the Leasing Costs that
Buyer is obligated to pay pursuant to this Section 7.4.8, then at Closing Buyer
shall reimburse Seller through Escrow for such costs so paid by Seller.

7.4.9 Parking Structure Income. Daily revenues and monthly fees and revenues
from and expenses of the Parking Structure will be prorated as of the Pro-ration Date and
shall be added to or deducted from the Purchase Price with Seller allocated all such fees,
revenues and expenses allocable to the period before the Pro-ration Date and Buyer
allocated the portion of such fees, revenues and expenses allocable to any period from and
after the Pro-ration Date.

7.4.10 Prorations Statement. As soon as reasonably practical after the
Effective Date, Seller shall prepare a statement containing all of the prorations of fees,
income, revenues and expenses required hereunder for Buyer’s review, and Seller shall
provide any backup documentation for the items in such statement as reasonably requested
by Buyer. If Buyer has any objections to such statement, the parties shall each cooperate
with the other diligently, promptly and in good faith to resolve such objections;
provided, however that the parties shall endeavor to agree upon and deliver a final
statement (“Proration Statement”) to Escrow Agent no later than one (1) business day
before the Closing Date.

7.4.11 Post Closing Adjustments. Any fees, income, revenues or expenses that
cannot be ascertained with certainty as of the Pro-Ration Date shall be prorated as of the
Pro-Ration Date on the basis of the parties’ reasonable estimates of such amounts based on
the best data then available, and such items prorated on the basis of estimates hereunder
shall be the subject of a final proration calculation as soon thereafter as the precise
amounts can be ascertained, but in no event later than twelve (12) months after the
Closing Date; provided, however, to the extent that one or more Occupant audits of such
items occur on or after the Closing Date, the parties agree to make further adjustments
after each such audit to the related prorations as soon as possible thereafter (which
adjustments shall include applicable attorney’s fees and costs and applicable audit costs
and fees). Seller and Buyer shall each cooperate with the other diligently and promptly
to correct any errors in computations made hereunder based on estimates or imprecise
information, including providing or making available all reports, records and other
information as the case may reasonably require, and shall promptly pay to the party
entitled thereto any refund, credit or other payment necessary to comply with this
Section 7.4 on demand therefor.

7.4.12 Survival. The provisions of this Section 7.4 shall survive
Closing.

7.5 Closing of Escrow.

7.5.1 Instructions. Escrow Agent is hereby instructed to record the Fisher
Lease Memo and the Rooftop Easement immediately after recording the Deed. The parties
hereto may submit to Escrow Agent any other reasonable closing instructions, so long as
such instructions are not contrary to the terms of this Agreement.

7.5.2 Reporting Requirements. Escrow Agent shall comply with all applicable
federal, state and local reporting and withholding requirements relating to the close of
the transactions contemplated herein. Without limiting the foregoing, pursuant to Section
6045 of the IRC, Escrow Agent shall be responsible for complying with the Tax Reform Act
of 1986 with regard to reporting all settlement information to the Internal Revenue
Service.

7.6 Possession. Subject to all Leases, the Fisher Lease, the Rooftop Easement and the
Permitted Exceptions, possession of the Property shall be delivered to Buyer upon Closing. To the
extent that they are then still in Seller’s possession, and have not theretofore been delivered to
Buyer, Seller shall either deliver at Closing or leave at a designated location at the Real
Property the following: (a) all original Leases, Service Contracts, Permits and Existing Warranties
that will remain in effect after Closing and all original Existing Environmental Reports; (b) all
operating manuals, codes and other items necessary to operate the Property; (c) any plans and
specifications for all Improvements; (d) all keys, access codes and other access control devices
for all Improvements; (e) all material documents relating to the Property; and (f) all
correspondence and records relating to the Leases, on-going operations (including tenant billings)
and maintenance of the Property. In addition, Seller shall direct Property Manager to deliver any
Property related documents or other files of Seller in Property Manager’s possession to Buyer at
the Closing or direct Property Manager to leave the same at a designated location at the Real
Property. For purposes of this Section 7.6, the foregoing shall be deemed to be in the
possession of Seller or Property Manager only if the same are located in Seller’s or Property
Manager’s offices in Seattle, Washington.

ARTICLE 8. CONDEMNATION; DAMAGE; DESTRUCTION

8.1 Condemnation. In the event that all or any portion of the Real Property shall be taken
in condemnation or under the right of eminent domain prior to the Closing Date, Seller shall
promptly notify Buyer thereof. A substantial portion of the Real Property shall be deemed taken if
(a) the value of such portion, as reasonably determined by Seller, exceeds the Damage Threshold
(defined in Section 8.2 below), (b) any Occupant generating five percent (5%) or more of
the revenue at the Property (a “Major Occupant”) has a right to terminate its Lease or abate rent
due to such taking, (c) there is a material reduction in parking spaces at the Property, or (d)
ingress and egress to the Property is materially impaired. If Seller notifies Buyer that a
substantial portion of the Real Property has been taken, within one (1) business day after receipt
of such notice, Buyer shall notify Seller and Escrow Agent, electing either to (w) to proceed with
this transaction and Closing notwithstanding such condemnation or (x) to terminate this Agreement.
If Buyer elects to proceed with this transaction, or if there is a taking in condemnation or
eminent domain that does not affect a substantial portion of the Real Property, there shall be no
reduction in the Purchase Price and Seller shall (y) deliver to Buyer at the Closing, or as soon
thereafter as available, any proceeds actually received by Seller attributable to the Real Property
from such condemnation or eminent domain proceeding and (z) assign to Buyer any and all rights
Seller may have with respect to payments from, and recovery against, any party for damages or
compensation relating to the Real Property on account of such condemnation or eminent domain
proceeding, including any rent abatement or other insurance proceeds. Buyer’s failure to notify
Seller within one (1) business day after receiving Seller’s notice of such taking shall be deemed
an election to proceed under clause (a) in this Section 8.1. If Buyer elects (or
is deemed to have elected) to proceed, Seller shall not compromise, settle or adjust any claims to
such award without Buyer’s prior written consent. In the event Buyer elects to terminate this
Agreement pursuant to clause (b) above, such termination shall have the same effect as a
termination pursuant to the last sentence of Section 3.1.2.3.

8.2 Damage or Destruction. If, before the Closing Date, the Real Property is damaged by
any casualty, Seller shall immediately notify Buyer of such occurrence. If (a) the cost to repair
such damage, as reasonably determined by Seller, is more than Twelve Million and No/Dollars
($12,000,000.00) (“Damage Threshold”), (b) such damage is uninsured or underinsured and is an
amount in excess of Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00) or (c) any
Major Occupant has a right to terminate its Lease or abate rent due to damage above the Damage
Threshold, then Buyer shall have the right, by giving notice to Seller within one (1) business day
after Seller notifies Buyer of the damage, to terminate this Agreement, in which event such
termination shall have the same effect as a termination pursuant to the last sentence of
Section 3.1.2.3. If, before the Closing Date, the Property is damaged by a casualty and
either (y) Buyer has the right to terminate this Agreement but does not exercise such right or (z)
the cost to repair such damage, as reasonably determined by Seller, is equal to or less than the
Damage Threshold, then this Agreement shall remain in full force and effect and, at Closing, Seller
shall assign to Buyer any insurance proceeds Seller receives or is entitled to by reason of such
damage (Buyer to receive a credit at Closing for (i) any insurance deductible payable with respect
to same unless such deductible is paid by Seller at or prior to Closing and (ii) any uninsured or
underinsured amount in excess of Seller’s property insurance deductible unless such amount is in
excess of Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00), in which case,
Seller shall have the right to terminate this Agreement by giving notice to Buyer within one (1)
business day after notifying Buyer of such damage, such termination having the same effect as a
termination pursuant to the last sentence of Section 3.1.2.3).

ARTICLE 9. BREACH OF AGREEMENT.

9.1 Seller’s Remedies. IN THE EVENT THAT (A) BUYER MATERIALLY BREACHES THIS AGREEMENT AND
THE BREACH IS NOT CURED WITHIN ONE (1) BUSINESS DAY AFTER NOTICE THEREOF FROM SELLER OR (B) THIS
TRANSACTION FAILS TO CLOSE BY REASON OF BUYER’S DEFAULT HEREUNDER, THEN SELLER SHALL, AS ITS SOLE
AND EXCLUSIVE REMEDY THEREFOR (EXCEPT AS EXPRESSLY PROVIDED OTHERWISE HEREIN), HAVE THE RIGHT TO
TERMINATE THIS AGREEMENT UPON DELIVERING WRITTEN NOTICE THEREOF TO BUYER AND, IN A SITUATION WHERE
THIS TRANSACTION FAILS TO CLOSE BY REASON OF BUYER’S DEFAULT HEREUNDER AND SELLER EXERCISES ITS
TERMINATION RIGHT, ESCROW AGENT SHALL RELEASE TO SELLER, AND SELLER SHALL BE ENTITLED TO RETAIN,
THE DEPOSIT, AS LIQUIDATED DAMAGES IN LIEU OF, AND AS FULL COMPENSATION FOR, ALL OTHER RIGHTS OR
CLAIMS OF SELLER AGAINST BUYER BY REASON OF SUCH FAILURE AND, IN THE EVENT THAT BUYER HAS MADE ANY
EXTENSION DEPOSIT, SELLER SHALL ALSO BE ENTITLED TO RETAIN SUCH AMOUNT AS SEPARATE CONSIDERATION
FOR ITS EXTENSION OF THE CLOSING DATE. IN CONNECTION WITH THE FOREGOING, THE PARTIES ACKNOWLEDGE
AND AGREE THAT (A) SELLER WILL INCUR SIGNIFICANT EXPENSES RELATED TO THE TRANSACTION CONTEMPLATED
BY THIS AGREEMENT, (B) THE PROPERTY WILL BE REMOVED FROM THE MARKET AND SELLER WILL FORGO
OPPORTUNITIES TO PURSUE OTHER POTENTIAL PURCHASERS, AND (C) FAILURE TO CLOSE THIS AGREEMENT WILL
RESULT IN OTHER IRREPARABLE HARM TO SELLER AND FISHER COMMUNICATIONS. THE PARTIES FURTHER AGREE
THAT, FOR THE FOREGOING REASONS, IT IS EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN THE
EXTENT OF DETRIMENT TO SELLER CAUSED BY THE FAILURE OF THE CONSUMMATION OF THE TRANSACTION
CONTEMPLATED BY THIS AGREEMENT OR THE AMOUNT OF THE COMPENSATION SELLER SHOULD RECEIVE AS A RESULT
OF BUYER’S FAILURE TO CLOSE; THEREFORE THE PARTIES AGREE THAT THE DEPOSIT REPRESENTS A REASONABLE
ESTIMATION AS OF THE EFFECTIVE DATE OF SELLER’S ANTICIPATED EXPENSES, LOSS AND OTHER POTENTIAL
DAMAGES AND IS NOT A PENALTY. THE PARTIES ACKNOWLEDGE THAT THE FOREGOING REMEDY HAS BEEN FAIRLY
AND KNOWINGLY NEGOTIATED BY SOPHISTICATED BUSINESS ENTITIES, EACH OF WHICH WAS REPRESENTED BY
COUNSEL. IF SELLER TERMINATES THIS AGREEMENT AND RETAINS THE ENTIRE DEPOSIT AS PROVIDED IN THIS
SECTION 9.1, THE PARTIES SHALL BE RELIEVED OF ALL FURTHER OBLIGATIONS AND LIABILITIES
HEREUNDER, EXCEPT AS EXPRESSLY SET FORTH HEREIN. IF, HOWEVER, BUYER CHALLENGES SELLER’S RIGHT TO
RETAIN THE ENTIRE DEPOSIT AS LIQUIDATED DAMAGES, THEN THIS SECTION 9.1 SHALL SURVIVE
TERMINATION AND BUYER SHALL ALSO INDEMNIFY SELLER FOR ALL REASONABLE ATTORNEYS FEES INCURRED BY
SELLER TO COLLECT THE DEPOSIT. NOTHING HEREIN SHALL LIMIT SELLER’S REMEDIES FOR ANY BREACH OF ANY
COVENANT OF BUYER TO INDEMNIFY, DEFEND, PROTECT OR HOLD HARMLESS SELLER OR TO REIMBURSE SELLER FOR
ANY SUMS OTHERWISE PAYABLE TO SELLER (INCLUDING ATTORNEYS’ FEES AND COSTS) TO THE EXTENT SUCH
COVENANT SURVIVES TERMINATION UNDER THE EXPRESS TERMS OF THIS AGREEMENT.

9.2 Buyer’s Remedies. In the event that the purchase and sale of the Property is not
closed solely because of a breach by Seller, and if such breach is not cured within one (1)
business day after Seller’s receipt of written notice from Buyer specifying such breach, Buyer
shall be entitled, as its sole and exclusive remedy, either to (a) terminate this Agreement and to
receive the return of the Deposit (and any Extension Deposit), and to be reimbursed by Seller for
the reasonable out-of-pocket costs and expenses actually paid by Buyer to third-party consultants
in connection with the transactions contemplated herein, as evidenced by invoices or receipts
therefor (not to exceed the Liquidated Damage Payment) or (b) seek specific performance of Seller’s
obligations under this Agreement, provided that any such action for specific performance shall not
limit the obligations of Buyer and Seller hereunder and shall not limit the prevailing party’s
right to recover its attorney’s fees and costs as provided herein. These remedies are mutually
exclusive and Buyer must elect, by giving notice to Seller and Escrow Agent no later than thirty
(30) days after the scheduled Closing Date, which of these remedies Buyer wishes to pursue. If
Buyer fails to deliver notice of its intent to commence an action for specific performance within
said period, Buyer will be deemed to have elected to terminate the Agreement and receive the funds
described in clause (a) above. Seller shall have no liability to Buyer under any
circumstances for any consequential or punitive damages.

9.3 Fees. In the event that either party terminates this Agreement as a result of the
other party’s breach or default hereunder, then, in addition to all other rights provided in this
Article 9, the defaulting party shall be responsible for paying all fees associated with
terminating Escrow and cancelling the Title Report.

ARTICLE 10. [INTENTIONALLY DELETED]

ARTICLE 11. GENERAL PROVISIONS

11.1 Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which, taken together, shall constitute one and the same instrument.
Counterparts of this Agreement delivered between the parties by facsimile or electronic mail shall
have the same force and effect as manually delivered originals; provided, however, that upon
request, such party shall deliver its original signature to the requesting party.

11.2 Entire Agreement. This Agreement, including all exhibits attached hereto (excluding
Exhibit D), contains the entire agreement of the parties respecting the subject matter
hereof and supersedes all prior and contemporaneous understandings and agreements, whether oral or
in writing, between the parties respecting the subject matter hereof. There are no
representations, agreements, arrangements or understandings, oral or in writing, between the
parties relating to the subject matter of this Agreement that are not fully expressed in this
Agreement. The terms of this Agreement are intended by the parties as a final expression of their
agreement with respect to those terms and they may not be contradicted by evidence of any prior or
contemporaneous agreement.

11.3 Counsel; Construction. Each party has received (or had the opportunity to receive)
independent legal advice from its attorneys with respect to the advisability of executing this
Agreement and the meaning and effect of the provisions hereof. The provisions of this Agreement
shall be given their fair meaning, and shall not be considered for or against any party based upon
one party’s drafting of such provisions. Headings used in this Agreement are for convenience of
reference only and shall not be used in construing this Agreement.

11.4 Choice of Law. This Agreement and the rights and obligations of the parties hereto
shall be governed by and construed and enforced in accordance with the laws of the State of
Washington exclusive of the conflict of laws principles of such state. Venue for any action
arising in connection with this Agreement shall exclusively lie in King County, Washington.

11.5 Severability. If any term, covenant, condition or provision of this Agreement, or the
application thereof to any person or circumstance, to any extent shall be held by a court of
competent jurisdiction to be invalid or unenforceable, the remainder of the terms, covenants,
conditions or provisions of this Agreement, or the application thereof to any person or
circumstance, shall remain in full force and effect.

11.6 Waiver of Covenants, Conditions or Remedies. Either party may waive any breach of the
terms and conditions hereof by the other party only by a written statement to that effect signed by
the waiving party. No waiver by a party of any breach of this Agreement by the other party shall
be deemed a waiver of any other breach by such other party (whether preceding or succeeding and
whether or not of the same or similar nature), and no acceptance of payment or performance by a
party after any breach by the other party shall be deemed to be a waiver of the breach, whether or
not the first party knows of the breach at the time it accepts payment or performance. No failure
or delay by a party to exercise any right it may have by reason of a default shall operate as a
waiver of default or modification of this Agreement or shall prevent the exercise of any right
while the other party continues to be in default. All remedies, rights, undertakings, obligations
and agreements herein shall be cumulative and not mutually exclusive.

11.7 Business Day. As used herein, “business day” means any calendar day except a
Saturday, Sunday, or legal holiday as defined in RCW 1.16.050. In the event that the date for
performance of any covenant or obligation under this Agreement falls on a Saturday, Sunday or legal
holiday, the date for performance thereof shall be extended to the next business day.

11.8 Exhibits and Schedules. All exhibits listed as such in the Table of Contents are
attached hereto and are incorporated by reference into this Agreement, except Exhibit D.

11.9 Amendment. This Agreement may be amended solely by the signed, written agreement of
Buyer and Seller.

11.10 Relationship of Parties. The parties agree that their relationship is that of seller
and buyer, and that nothing contained herein shall make either party the agent or legal
representative of the other for any purpose whatsoever, nor shall this Agreement be deemed to
create any form of business organization between the parties hereto, nor is either party granted
any right or authority to assume or create any obligation or responsibility on behalf of the other
party, nor shall either party in any way be liable for any debt of the other.

11.11 No Third-Party Benefit. This Agreement is intended to benefit only the parties
hereto and no other person or entity has or shall acquire any rights hereunder.

11.12 Time of the Essence. Time is of the essence of every term, covenant and condition in
this Agreement.

11.13 Further Acts. Each party agrees without further consideration to perform any further
acts and to execute, acknowledge and deliver any documents that may be reasonably necessary to
carry out the provisions of this Agreement.

11.14 No Recording. Buyer shall not record this Agreement, any memorandum of this
Agreement, any assignment of this Agreement or any other document that would cause a cloud on the
title to the Real Property. Notwithstanding the foregoing, the parties acknowledge that final,
executed versions of the Rooftop Easement and Fisher Lease Memo will be recorded at Closing.

11.15 Assignment. Upon at least one (1) business day’s prior written notice from Buyer to
Seller, Buyer may assign all of its rights hereunder, and delegate all of its obligations
hereunder, to any partnership, corporation or other entity that controls, is controlled by, or is
under common control with Buyer (control being defined as ownership of at least fifty percent (50%)
of the equity interests in, and the power to direct the management of, the relevant entity), or any
partnership, corporation or other entity resulting from a merger or consolidation with Buyer, or
any person or entity that acquires all or substantially all the assets of Buyer as a going concern.
Except as set forth above, Buyer shall not assign Buyer’s rights or delegate its obligations
hereunder without Seller’s prior written consent, which consent Seller may withhold in its sole and
absolute discretion. Subject to the foregoing, this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

11.16 Attorneys’ Fees. If any action is brought by either party against the other party,
relating to or arising out of this Agreement, the transaction described herein or the enforcement
hereof, the prevailing party shall be entitled to recover from the other party reasonable
attorneys’ fees, costs and expenses incurred in connection with prosecution or defense of such
action, including, without limitation, any attorneys’ fees incurred in connection with any appeals,
mediation or arbitration related to such action. The provisions of this Section 11.16
shall survive the entry of any judgment, and shall not merge or be deemed to have merged into any
judgment. The provisions of this Section 11.16 shall survive the Closing or any
termination of this Agreement.

11.17 Advisors. Buyer represents and warrants that Buyer has not dealt with any brokers,
finders, advisors or consultants (collectively, “Advisors,” and each individually an “Advisor”) in
connection with the purchase and sale of the Property. Seller represents to Buyer that Seller has
not dealt with any Advisors in connection with the purchase and sale of the Property except Moelis
& Company, LLC and CenturyPacific LLLP (“Seller’s Advisors”). Seller shall be solely responsible
for any payments due to Seller’s Advisors in connection with the purchase and sale of the Property.
Buyer agrees to indemnify and hold harmless Seller against any Claim incurred by reason of any
brokerage fee, commission, finder’s fee or other fee that is (or is alleged to be) payable to any
Advisor because of any agreement, act, omission or statement of Buyer. Seller agrees to indemnify
and hold harmless Buyer against any Claim incurred by reason of any brokerage fee, commission,
finder’s fee or other fee that is (or is alleged to be) payable to any Advisor because of any
agreement, act, omission or statement of Seller. The provisions of this Section 11.17
shall survive the Closing or any termination of this Agreement.

11.18 Notices. Any notice or election required or permitted to be given or made under this
Agreement shall be deemed given or made when addressed to Seller or Buyer, as the case may be (with
copies to all parties noted below), at the respective addresses set forth below. Notices shall be
transmitted, or delivered, as follows: (1) by personal delivery, (2) by recognized overnight
courier service, or (3) mailed by United States certified mail, return receipt requested, postage
prepaid. In addition, for all methods of notice, notices to each party shall be copied to the
respective email addresses set forth below. Notices shall be deemed to be delivered on the earlier
of (a) the date received, (b) one (1) business day after deposit with an overnight courier service,
or (c) three (3) business days after deposit in the United States mail, certified mail, postage
prepaid.

Seller’s Address for Notice:

Fisher Media Services Company

140 4th Avenue North, Suite 500

Seattle, Washington 98019

Attn: Chief Financial Officer and General Counsel

Email: HNatha@fsci.com (CFO); CBellavia@fsci.com (General Counsel)

with a copy to:

Perkins Coie LLP

10885 N.E. Fourth Street, Suite 700

Bellevue, Washington 98004-5579

Attn: Craig H. Shrontz

Email: CShrontz@perkinscoie.com

Buyer’s Address for Notice:

	 	 	 
	c/o Hines Interests Limited Partnership

	2800 Post Oak Boulevard, Suite 5000

	Houston, Texas 77056

Attn:

Email:

	 	

Charles N. Hazen

charles.hazen@hines.com
	
 
	 	 

with a copy to:

	 	 	 
	Hines Advisors Limited Partnership

	2800 Post Oak Boulevard, Suite 5000

	Houston, Texas 77056

	 	

	Attn: Jason P. Maxwell, Esq. – Corporate Counsel

	Email: jason.maxwell@hines.com

	 

	with copy to:

	 	

	Baker Botts L.L.P.

910 Louisiana Street

One Shell Plaza

Houston, Texas 77002

Attn:

Email:

	 	

Consuella S. Taylor

connie.simmons.taylor@bakerbotts.com
	
 
	 	 

Any party hereto may change its address for the service of notice hereunder by delivering written
notice of said change to the other party, in the manner above specified.

11.19 Mutual Waivers of Jury Trial and Certain Damages. BUYER AND SELLER EACH HEREBY
EXPRESSLY, IRREVOCABLY, FULLY AND FOREVER RELEASE, WAIVE AND RELINQUISH ANY AND ALL RIGHT TO TRIAL
BY JURY AND ALL RIGHT TO RECEIVE PUNITIVE, EXEMPLARY AND CONSEQUENTIAL DAMAGES FROM THE OTHER (OR
ANY BUYER PARTY OR SELLER PARTY) IN ANY CLAIM IN WHICH BUYER OR SELLER IS A PARTY THAT IN ANY WAY
(DIRECTLY OR INDIRECTLY) ARISES OUT OF, RESULTS FROM OR RELATES TO THIS AGREEMENT, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER BASED ON CONTRACT, TORT OR ANY OTHER LEGAL
BASIS.

11.20 Confidentiality. Buyer agrees that the existence of this Agreement, the negotiations
concerning a possible purchase and sale of the Property more generally, all of the terms,
conditions and provisions of this Agreement and any information obtained by Buyer, the Buyer
Parties or any of Buyer’s advisors, lenders, joint venturer or investors (collectively, “Permitted
Outside Parties”), including, without limitation, the Due Diligence Materials (but excluding any
information (a) generally available to the public other than by reason of Buyer’s breach of its
obligations hereunder and (b) that was or becomes available to Buyer on a nonconfidential basis
from a source other than Seller or its advisors not known to Buyer, after reasonable inquiry, to be
bound by a confidentiality agreement with or obligation to Seller) are and shall be treated as
confidential and shall be used only to evaluate the possible acquisition of the Property from
Seller. Buyer further acknowledges that any information relating to the leasing arrangements
between Seller and any Occupants or prospective occupants are proprietary and confidential in
nature. Buyer agrees not to divulge any information described in this Section 11.20 before
Closing, except when required by applicable law or court order (and only then after notice thereof
to Seller) and except to such Permitted Outside Parties who “need to know” to assist Buyer in
connection with the consummation of the transactions contemplated in this Agreement, so long as
Buyer first obtains each such party’s agreement to treat all such information as confidential as if
they were a party hereto. In the event that the transaction contemplated in this Agreement does
not close for any reason, Buyer shall return or destroy all Due Diligence Materials in Buyer’s or
the Permitted Outside Parties’ possession (and certify any such destruction in writing to Seller).
Notwithstanding anything to the contrary contained herein, Buyer and the Permitted Outside Parties
shall be entitled to retain one copy of the Due Diligence Materials to the extent necessary in
order to comply with any applicable laws or regulations and document retention policies and shall
only be required to use commercially reasonable efforts to return or destroy any materials stored
electronically, and Buyer and the Permitted Outside Parties shall not be required to return or
destroy any electronic copy of the Due Diligence Materials created pursuant to their standard
electronic backup and archival procedures. Any copies so retained and/or not destroyed by Buyer or
the Permitted Outside Parties shall be kept by Buyer and the Permitted Outside Parties in strict
compliance with this Section 11.20. Neither party shall issue any press release (or form
of press release) or make any statement to the media regarding such information or the transactions
contemplated hereunder without the other party’s prior written consent; provided, however, that if
the transactions contemplated herein close, Buyer and Seller shall reasonably cooperate and
coordinate the preparation and issuance of press releases announcing the sale, in form and content
mutually agreeable to both Buyer and Seller. In permitting Buyer and the Permitted Outside Parties
to review the Due Diligence Materials, this Agreement and other information, Seller has not waived
any privilege or claim of confidentiality with respect thereto. Buyer understands and agrees that
any breach of this Section 11.20 will result in ongoing and irreparable harm to Seller and
that monetary damages will not be completely sufficient to remedy any such breach. Therefore,
Seller shall be entitled to seek specific performance or injunctive or other equitable relief in
the event of any such breach in addition to monetary damages and any other remedies that may be
available to Seller. Buyer shall indemnify Seller and the Seller Parties from and against any and
all Claims resulting from, arising out of or in connection with any breach of this Section
11.20 by Buyer or any Permitted Outside Parties. This Section 11.20 shall survive the
Closing or any termination of this Agreement. Notwithstanding anything in this Section
11.20 to the contrary, (x) Seller and its affiliates shall have the right to disclose any
information deemed confidential herein to Seller’s Advisors, attorneys, Property Manager,
consultants or other professionals as necessary to evaluate and effectuate the sale of the Property
to Buyer without notice to Buyer and, after notice to Buyer, as necessary to comply with all
applicable laws, court orders and any other applicable rules or regulations and (y) Seller
recognizes that Hines Global may, and Buyer recognizes that Fisher Communications will, disclose to
the Securities and Exchange Commission (“SEC”) financial statements and/or other communications of
such information regarding the transactions contemplated hereby and any such information relating
to the Property, but only to the extent necessary under federal or state securities laws, rules, or
regulations (including SEC rules and regulations), generally accepted accounting principles, or
other accounting rules and procedures. Without limiting the foregoing, Hines Global and Fisher
Communications may file this Agreement with the SEC after the execution of the same and may file a
form “8K” and/or prospectus supplement to which this Agreement may be attached. Any required SEC
filings made under this Section 11.20 shall be made by Hines Global and Fisher
Communications within the time limits prescribed by law. Nothing in this Section 11.20
shall be interpreted as modifying or limiting any of the confidentiality or non-disclosure
provisions within any of the Leases or the Fisher Lease and, from and after Closing, Buyer shall be
bound by all such provisions.

11.21 Limitation of Liability. The obligations of Seller under this Agreement are binding
only on Seller and Seller’s assets and shall not be personally binding upon, nor shall any resort
be had to, the private properties of any of the partners, members, officers, directors,
shareholders, affiliates or beneficiaries of Seller, or of any partners, members, officers,
directors, shareholders, or beneficiaries of any partners, affiliates or members of Seller, or of
any of Seller’s employees or agents. The obligations of Buyer are binding only on Buyer and
Buyer’s assets and shall not be personally binding upon, nor shall any resort be had to, the
private properties of any of the partners, members, officers, directors, shareholders, affiliates
or beneficiaries of Buyer, or of any partners, members, officers, directors, shareholders or
beneficiaries of any of Buyer’s affiliates, employees or agents.

11.22 Joinder.

11.22.1 Of Fisher Communications. Seller hereby covenants and agrees that,
commencing on the Closing Date and continuing until the later of (a) the date that is twelve (12)
months after the Closing Date or (b) the date on which any and all Claims timely asserted by Buyer
against Seller in accordance with the terms of this Agreement shall have been finally compromised
and settled ((i) and (ii) being referred to herein as the “Fisher Applicable Time Period”), Fisher
Communications shall be jointly and severally liable for any breach of Seller’s representations and
warranties set forth in Sections 5.2 and 11.17. Fisher Communications shall have
no liability hereunder after the Fisher Applicable Time Period. Seller shall cause Fisher
Communications to execute a joinder to this Agreement to evidence Fisher Communications’ agreement
to be jointly and severally liable to Buyer for any breach of Seller’s representations and
warranties set forth in Sections 5.2 and 11.17.

11.22.2 Of Hines Global. Buyer hereby covenants and agrees that, commencing on the
Effective Date and continuing until the later of (a) the Closing Date or (b) the date on which any
and all Claims timely asserted by Seller against Buyer in accordance with the terms of this
Agreement, or Claims timely brought against Seller for which Buyer has an obligation to indemnify
Seller, shall have been finally compromised and settled ((a) and (b) being referred to herein as
the “Hines Applicable Time Period”), Hines Global REIT Properties LP (“Hines Global”) shall be
jointly and severally liable for any breach of Buyer’s obligations under this Agreement and any
indemnification obligation of Buyer under this Agreement. Hines Global shall have no liability
hereunder after the Hines Applicable Time Period. Buyer shall cause Hines Global to execute a
joinder to this Agreement to evidence Hines Global’s agreement to be jointly and severally liable
to Seller as provided in this Section 11.22.2.

11.23 Cooperation with Auditors and SEC Filings. The parties shall reasonably cooperate
with one another to provide (at the requesting party’s sole cost and expense) copies of, or
reasonable access to, such information as may be reasonably requested, to the extent in the
possession of the non-requesting party, to enable the requesting party’s auditor (which with
respect to Buyer shall be Deloitte & Touche LLP or any successor auditor selected by Buyer) to
conduct an audit of the expenses of the operation of the Property for the year in which Closing
occurs and, with respect to Buyer, the year immediately preceding the year in which Closing occurs.
The parties shall each reasonably cooperate with the other’s auditor on, and subject to, the same
terms as set forth above in the conduct of such audit. In addition, each party agrees to make
reasonably available to the other’s auditor, if requested by such auditor, expense statements for
the operation of the Property, whether required before or after Closing, but only to the extent
that such expense statements are in the possession of the non-requesting party. Without limiting
the foregoing, each party shall furnish to the other party hereto such Property expense information
as may be reasonably required by the requesting party or any affiliate of the requesting party to
make any filings required by law with the SEC or other governmental authority; provided the
foregoing obligations shall be limited to providing such information or documentation as may be in
the possession of the non-requesting party. This Section 11.23 will survive Closing for a
period of one (1) year.

[Signatures on Following Page.]

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the Effective
Date.

SELLER:

FISHER MEDIA SERVICES COMPANY,

a Washington corporation

By

Name

Title

BUYER:

HINES GLOBAL REIT 100/140 FOURTH AVE LLC, a Delaware
limited liability company

By

Name

Title

1

JOINDER BY FISHER COMMUNICATIONS

The undersigned joins herein solely to evidence the undersigned’s agreement to the provisions
of Section 11.22.1 and Schedule 1 to Exhibit E, and the undersigned shall have no other
responsibility under this Agreement.

	 	 	 
	Date:      , 2011

	 	FISHER COMMUNICATIONS, INC.

By:
	
 
	 	 
	Name:

	 	

	 

	 	

	Title:

	 	

	 

	 	

JOINDER BY HINES GLOBAL

The undersigned joins herein solely to evidence the undersigned’s agreement to the provisions
of Section 11.22.2, and the undersigned shall have no other responsibility under this
Agreement.

	 	 	 	 	 
	 	 	HINES GLOBAL REIT PROPERTIES LP
	Date:      , 2011

	 	By:

By:
	 	Hines Global REIT, Inc.

	
 
	 	 	 	 
	Name:

	 	

	 	

	 

	 	

	 	

	Title:

	 	

	 	

	 

	 	

	 	

EXHIBIT J

FORM OF FISHER LEASE

2

LEASE

BY AND BETWEEN

HINES GLOBAL REIT 100/140 FOURTH AVE LLC,

a Delaware limited liability company (“Landlord”)

AND

FISHER COMMUNICATIONS, INC.,

a Washington corporation

(“Tenant”)TABLE OF CONTENTS

ARTICLE 1 THE PREMISES

ARTICLE 2 TERM

ARTICLE 3 BASE RENT

ARTICLE 4 ADDITIONAL RENT

ARTICLE 5 SECURITY

ARTICLE 6 USE OF PREMISES AND PROPERTY

ARTICLE 7 ASSIGNMENT AND SUBLETTING

ARTICLE 8 MAINTENANCE AND REPAIRS

ARTICLE 9 ALTERATIONS

ARTICLE 10 SIGNS

ARTICLE 11 ACCESS

ARTICLE 12 INSURANCE

ARTICLE 13 SERVICES AND UTILITIES

ARTICLE 14 LIABILITY OF LANDLORD

ARTICLE 15 RULES AND REGULATIONS

ARTICLE 16 DAMAGE OR DESTRUCTION

ARTICLE 17 CONDEMNATION

ARTICLE 18 DEFAULT

ARTICLE 19 BANKRUPTCY

ARTICLE 20 SUBORDINATION; MORTGAGES

ARTICLE 21 HOLDING OVER

ARTICLE 22 COVENANTS OF LANDLORD

ARTICLE 23 PARKING

ARTICLE 24 GENERAL PROVISIONS

3

LIST OF EXHIBITS

	 	 	 
	A

B
	 	Legal Description of the Land and Project

The Premises

C Declaration Affirming the Lease Commencement Date and Rent Commencement Dates

	 	 	 
	D

E

F

G

H

I

J

K
	 	Rules and Regulations

Service Level Agreement

N/A

Cabling Specifications

Non-Disclosure Agreement

Garage Space Lease

Rooftop Easement Agreement

Form of “Estoppel”

LEASE

THIS LEASE (this “Lease”) is dated for reference purposes as of the        day of
     , 2011, by and between HINES GLOBAL REIT 100/140 FOURTH AVE LLC, a Delaware limited
liability company (“Landlord”), and FISHER COMMUNICATIONS, INC., a Washington corporation
(“Tenant”).

RECITALS:

A. Pursuant to that certain Real Estate Purchase and Sale Agreement dated as of October   ,
2011 (the “PSA”), between Tenant or Tenant’s affiliate, as seller, and Landlord, as buyer, Tenant
conveyed to Landlord its ownership interest in and to a mixed use project known as Fisher Plaza,
located at 100/140 Fourth Avenue North, Seattle, King County, Washington (the “Project”) and
situated on certain real property legally described on Exhibit A attached hereto (the
“Land”). The Project consists of two buildings, Fisher Plaza East and Fisher Plaza West (Fisher
Plaza East, individually, the “Building” (unless the context dictates otherwise herein), and both
buildings together, the “Buildings”), with an underground parking garage containing approximately
504 stalls appurtenant thereto (“Garage”). The Buildings and the Land together constitute the
“Property.”

B. Pursuant to the terms of the PSA, immediately following the closing of the sale of the
Property (the “Closing”), Tenant is to lease the areas of the Project identified herein, and
Landlord is willing to lease such portions of the Project to Tenant, upon the terms, conditions,
covenants and agreements set forth herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby covenant and agree
as follows:

ARTICLE 1.

THE PREMISES

1.1 Premises. Landlord hereby leases and demises to Tenant and Tenant hereby leases and
accepts from Landlord, for the term and upon the terms and conditions hereinafter set forth, the
space consisting of portions of the Buildings and the Project comprising an agreed 120,969 rentable
square feet, as described in Exhibit B, plus parking rights (the “Premises”).

1.2 Common Areas. Subject to the terms of this Lease, Tenant shall also have the
non-exclusive right to use the public and common areas and facilities in the Buildings and on the
Land that Landlord has designated as open for use by other users and tenants without special
restriction or additional charge (the “Common Areas”), including any lobby areas, stairwells,
elevators, areas devoted to the public and to other tenants of the Property as corridors, fire
vestibules, lobbies, restrooms, plaza (including plaza stage), fitness center, Building conference
rooms, and other similar facilities for the benefit of all tenants (or all invitees), specifically
including the Fisher Plaza West rooftop riser room. In addition, Tenant shall have the
non-exclusive right, to the extent reasonably necessary in order for Tenant to use the Premises for
Permitted Uses (hereinafter defined), upon request to Landlord and subject to Landlord’s reasonable
security procedures, to use, at no additional charge, the Meet Me Room, demarc rooms, vaults,
telephone rooms, risers, trays, chases and raceways located in the Building, subject to such
reasonable Rules and Regulations attached hereto as Exhibit D and directives as may from
time to time be promulgated by Landlord, and otherwise in accordance with the requirements of this
Lease.

1.3 Tenant’s right to reduce the Premises area shall be exercised, if at all, upon a prior
written notice to Landlord (“Reduction Notice”). A Reduction Notice shall specify, in Tenant’s
sole discretion, the portion of the Premises which will be subject to reduction, subject to the
above limitations (the “Terminated Space”). Tenant’s Reduction Notice (i) must be delivered to
Landlord, if at all, on or before (a) January 1, 2015 or (b) January 1, 2020, (ii) Elevator.
Tenant shall have the continued non-exclusive right to use the Technical Express Elevator in Fisher
Plaza East via the access card system.

1.4 Garage Space. Landlord and Tenant are also parties to that certain Garage Space Lease
(the “Garage Lease,” attached hereto as Exhibit I) for approximately 5,449 usable square
feet of storage space including helicopter fuel storage and appurtenant equipment in the Garage, at
the locations shown in the drawings attached to Exhibit I. Separate storage areas within
Fisher Plaza East (approximately 1,525 SF) are included as a part of the Premises hereunder and not
subject to the Garage Lease (“Building Storage”). Tenant shall also have the right to use portions
of the Garage as described in Section 23.

1.5 Rooftop Easement Agreement. Appurtenant to Tenant’s rights under this Lease, Tenant, its
affiliates and its authorized users shall have the exclusive right, during Tenant’s occupancy of
the Premises or any portion thereof, to use the heliport (“Heliport”) on the roof of Fisher Plaza
East, and the facilities appurtenant thereto, during the Lease Term, as it may be extended. In
addition, Tenant, its affiliates, service providers, and carriers shall have the right, during
Tenant’s occupancy of the Premises or any portion thereof, to install, replace, repair, operate,
relocate, move, and maintain existing and future satellite dishes and antennas or other
communications equipment on the roof of Fisher Plaza East and Fisher Plaza West, and the facilities
appurtenant thereto, during the Lease Term, as it may be extended. The rights described in this
Section 1.5 are more specifically described in that certain Rooftop Easement Agreement in the form
attached hereto as Exhibit J.

ARTICLE 2.

TERM

2.1 Term. The term of this Lease (hereinafter referred to as the “Term” or “Lease Term”)
shall commence on the date that Landlord’s purchase of the Project from Tenant or Tenant’s
affiliate is closed, as described in Recital B (the “Commencement Date”), and shall terminate on
December 31, 2023 (the “Expiration Date”), unless such Lease Term shall be extended, renewed or
terminated earlier in accordance with the provisions hereof or by separate agreement between
Landlord and Tenant. Promptly after the Commencement Date, Landlord and Tenant shall execute a
written declaration setting forth the Commencement Date and the date upon which the initial Lease
Term will expire. The form of such declaration is attached hereto as Exhibit C and made a
part hereof.

2.2 Option to Extend. Tenant shall have the right to extend the Lease Term beyond the
expiration of the initial Lease Term, with respect to all or any contiguous portion of each floor
within the Premises so long as the square footage on any floor that will not be included in the
Premises is demisable into a leasable configuration, for three (3) successive periods of five (5)
years each (each of which is an “Extended Term”). Landlord shall deliver to Tenant written notice
of Tenant’s right to exercise each such extension right (the “Landlord’s Advance Exercise Notice”)
no later than the date that is twelve (12) months prior to the Expiration Date of the then-existing
term of this Lease. Tenant may exercise an extension option by delivering to Landlord written
notice of Tenant’s exercise of such extension right no later than the date that is thirty (30) days
following Tenant’s receipt of Landlord’s Advance Exercise Notice. From and after the commencement
of each Extended Term, all of the terms, covenants, and conditions of this Lease shall continue in
full force and effect as written, except that this Section 2.2 shall be deemed modified to delete
Tenant’s right to extend for the current Extended Term (e.g., following commencement of the first
Extended Term, Tenant shall only have the right to extend for two (2) additional Extended Terms).
Each such Extended Term shall be on all of the terms and conditions contained in this Lease, except
that Base Rent for the first year of each Extended Term shall be one hundred three percent (103%)
of the Base Rent in effect for the last month of the prior Term, and Base Rent for each subsequent
year during the Extended Term shall be one hundred three percent (103%) of the Base Rent in effect
for the last month of the preceding year.

2.3 Reduction of Premises. Tenant shall have the right to reduce the Premises by up to twenty
percent (20%) of the rentable square footage thereof, provided that such reduced s Reduction of
Premises. Tenant shall have the right to reduce the Premises by up to twenty percent (20%) of the
rentable square footage thereof, provided that such reduced space is comprised of contiguous areas
(by floor) of the office and/or broadcast space, and is demisable into the leasable configuration,
but in no event shall such reduced space include the studio space on the fifth (5th) floor of the
Building.

2.3.1 must be accompanied by an amount equal to six (6) months’ Base Rent and
Additional Rent with respect to the Terminated Space (the “Reduction Payment”), and (iii)
shall be effective as of (x) January 1, 2016 or (y) January 1, 2021, as applicable (the
“Effective Termination Date”). If Tenant fails to timely deliver a Reduction Notice or
the applicable Reduction Payment by the second of the applicable dates shown in clause (i)
above, Tenant’s rights under this Section 2.3 shall be void and of no further force and
effect. Landlord and Tenant hereby acknowledge and agree that so long as the aggregate
amount of Terminates Space does not exceed twenty percent (20%) of the Premises as of the
Commencement Date, a Reduction may specify any portion of the Premises as Terminated
Space, subject to the above limitations. For example, if Tenants first Reduction Notice
designates five percent (5%) of the Premises as Terminated Space, Tenant’s second
Reduction Notice may designate up to fifteen percent (15%) of the Premises as Terminated
Space, subject in both cases to the above limitations.

2.3.2 The Terminated Space shall either be separately demised space as of the date of
the Reduction Notice, or Tenant shall pay the costs and expenses of demising the
Terminated Space in accordance with plans and specifications, with Building standard
finishes, approved by Landlord, such approval not to be unreasonably withheld,
conditioned, or delayed. Tenant shall pay Base Rent and Additional Rent, and any other
amounts due under this Lease for the Terminated Space until the later of (i) the date on
which the Terminated Space is vacated by Tenant and possession thereof delivered to
Landlord, or (ii) the Effective Termination Date. Such date shall hereafter be referred
to as the “Reduction Date.”

2.3.3 Upon delivery by Tenant to Landlord of the vacated Terminated Space, Tenant and
Landlord shall agree upon the revised rentable square footage of the Premises to be
available for Tenant’s use, based on the measurements in effect on the Commencement Date
of this Lease with respect to the Project and the Premises as reflected in Exhibit B (the
“Revised Premises Area”). The rentable square footage of the Revised Premises Area shall
be determined as of a Reduction Date by subtracting the rentable square footage of the
Terminated Space from the rentable square footage of the Premises immediately prior to
such reduction. The rentable square footage of the Terminated Space shall equal the
useable square footage of the Terminated Space multiplied by 1.2. From and after the
applicable Reduction Date, the Base Rent, Tenant’s Pro Rata Share of Operating
Expenses, and any other element of this Lease that is based on the rentable square footage
of the Premises, shall be adjusted to reflect the Revised Premises Area. Landlord and
Tenant shall execute an amendment to this Lease to reflect the Revised Premises Area, Pro
Rata Share, Base Rent, and Additional Rent effective as of a Reduction Date.

ARTICLE 3.

BASE RENT

3.1 Base Rent. Commencing on the first day of the first full calendar month following the
Commencement Date (the “Rent Commencement Date”), Tenant shall pay to Landlord annual rent (“Base
Rent”), net of all Operating Expenses (which term is defined in Section 4.2 below), for the
Premises, without set off, deduction, demand or counterclaim except as otherwise expressly provided
herein, in the amounts set forth below. The monthly Base Rent shall be due and payable in advance
on the first day of each successive month, prorated for any partial months.

3.1.1 Broadcast Space Base Rent. 

	 	 	 	 	 	 	 	 	 
	 	 	Broadcast (27,432 RSF)*
	Time Period	 	Rate per RSF per	 	Base Monthly Rent
	 	 	Year	 	 	 	 
	Commencement Date through December 31, 2012

	 	$	25.00	 	 	$	57,150.00	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2013

	 	$	25.75	 	 	$	58,864.50	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2014

	 	$	26.52	 	 	$	60,630.44	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2015

	 	$	27.32	 	 	$	62,449.35	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2016

	 	$	28.14	 	 	$	64,322.83	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2017

	 	$	28.98	 	 	$	66,252.51	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2018

	 	$	29.85	 	 	$	68,240.09	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2019

	 	$	30.75	 	 	$	70,287.29	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2020

	 	$	31.67	 	 	$	72,395.91	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2021

	 	$	32.62	 	 	$	74,567.79	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2022

	 	$	33.60	 	 	$	76,804.82	 
	 

	 	 	 	 	 	 	 	 
	Calendar Year 2023

	 	$	34.61	 	 	$	79,108.97	 
	 

	 	 	 	 	 	 	 	 

• Subject to adjustment for reduction of Premises.

3.1.2 Office Space Base Rent. 

4

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Office (85,694 RSF)*
	Time Period	 	Rate per RSF per	 	Base Monthly Rent
	 
	 	Year	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Commencement Date through December 31, 2012
	 	$	25.13	 	 	 	 	 	 	$	179,458.67	 
	 	 	 	 	 	 	 
	Calendar Year 2013
	 	$	25.88	 	 	 	 	 	 	$	184,842.43	 
	 	 	 	 	 	 	 
	Calendar Year 2014
	 	$	26.66	 	 	 	 	 	 	$	190,387.70	 
	 	 	 	 	 	 	 
	Calendar Year 2015
	 	$	27.46	 	 	 	 	 	 	$	196,099.33	 
	 	 	 	 	 	 	 
	Calendar Year 2016
	 	$	28.28	 	 	 	 	 	 	$	201,982.31	 
	 	 	 	 	 	 	 
	Calendar Year 2017
	 	$	29.13	 	 	 	 	 	 	$	208,041.78	 
	 	 	 	 	 	 	 
	Calendar Year 2018
	 	$	30.01	 	 	 	 	 	 	$	214,283.03	 
	 	 	 	 	 	 	 
	Calendar Year 2019
	 	$	30.91	 	 	 	 	 	 	$	220,711.52	 
	 	 	 	 	 	 	 
	Calendar Year 2020
	 	$	31.83	 	 	 	 	 	 	$	227,332.87	 
	 	 	 	 	 	 	 
	Calendar Year 2021
	 	$	32.79	 	 	 	 	 	 	$	234,152.86	 
	 	 	 	 	 	 	 
	Calendar Year 2022
	 	$	33.77	 	 	 	 	 	 	$	241,177.44	 
	 	 	 	 	 	 	 
	Calendar Year 2023
	 	$	34.79	 	 	 	 	 	 	$	248,412.76	 
	 	 	 	 	 	 	 

• Subject to adjustment for reduction of Premises.

3.1.3 Data Center Space Base Rent. 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Data Center (6,318 RSF)
	Time Period	 	Rate per RSF per	 	Base Monthly Rent
	 
	 	Year	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Commencement Date through December 31, 2012
	 	$	80.00	 	 	 	 	 	 	$	42,120.00	 
	 	 	 	 	 	 	 
	Calendar Year 2013
	 	$	82.40	 	 	 	 	 	 	$	43,383.60	 
	 	 	 	 	 	 	 
	Calendar Year 2014
	 	$	84.87	 	 	 	 	 	 	$	44,685.11	 
	 	 	 	 	 	 	 
	Calendar Year 2015
	 	$	87.42	 	 	 	 	 	 	$	46,025.66	 
	 	 	 	 	 	 	 
	Calendar Year 2016
	 	$	90.04	 	 	 	 	 	 	$	47,406.43	 
	 	 	 	 	 	 	 
	Calendar Year 2017
	 	$	92.74	 	 	 	 	 	 	$	48,828.62	 
	 	 	 	 	 	 	 
	Calendar Year 2018
	 	$	95.52	 	 	 	 	 	 	$	50,293.48	 
	 	 	 	 	 	 	 
	Calendar Year 2019
	 	$	98.39	 	 	 	 	 	 	$	51,802.29	 
	 	 	 	 	 	 	 
	Calendar Year 2020
	 	$	101.34	 	 	 	 	 	 	$	53,356.36	 
	 	 	 	 	 	 	 
	Calendar Year 2021
	 	$	104.38	 	 	 	 	 	 	$	54,957.05	 
	 	 	 	 	 	 	 
	Calendar Year 2022
	 	$	107.51	 	 	 	 	 	 	$	56,605.76	 
	 	 	 	 	 	 	 
	Calendar Year 2023
	 	$	110.74	 	 	 	 	 	 	$	58,303.93	 
	 	 	 	 	 	 	 

3.1.4 Building Storage Space Base Rent. 

	 	 	 	 	 	 	 
	 	 	Building Storage (1,525 RSF)
	Time Period	 	Rate per RSF per Year*	 	Base Monthly Rent
	Commencement Date through December 31, 2012	 	$12.00	 	$1,525.00
	* Such rate is subject to annual adjustment to Landlord’s then-standard rates for storage space in the

	Project on or after January 1, 2013, provided that Landlord provides at least 30 days’ prior written

	notice and that any adjustment shall not increase such rate to more than 103% of the rate in effect for

	the prior year. The square footage of Building Storage shall not be calculated in determining the

	Premises area for the purposes of Tenant’s Pro Rata Share, Operating Expenses and the like.

	3.1.5 Combined Broadcast, Data Center and Office Space Premises

	Base Rent.
	 	 	 	 
	 

	Time Period

	 	 	 	Total Premises
	 	

	 
	 	 
	 	 	 	 	Base Monthly Rent*#
	 	 	 	 	 
	 
	 	 
	Commencement Date through December 31, 2012	 	 	 	$278,728.67
	 	 	 	 	 
	Calendar Year 2013	 	 	 	$287,090.53
	 	 	 	 	 
	Calendar Year 2014	 	 	 	$295,703.24
	 	 	 	 	 
	Calendar Year 2015	 	 	 	$304,574.34
	 	 	 	 	 
	Calendar Year 2016	 	 	 	$313,711.57
	 	 	 	 	 
	Calendar Year 2017	 	 	 	$323,122.92
	 	 	 	 	 
	Calendar Year 2018	 	 	 	$332,816.60
	 	 	 	 	 
	Calendar Year 2019	 	 	 	$342,801.10
	 	 	 	 	 
	Calendar Year 2020	 	 	 	$353,085.14
	 	 	 	 	 
	Calendar Year 2021	 	 	 	$363,677.69
	 	 	 	 	 
	Calendar Year 2022	 	 	 	$374,588.02
	 	 	 	 	 
	Calendar Year 2023	 	 	 	$385,825.66
	 	 	 	 	 
	* Subject to adjustment for reduction of Premises.
	 	 	 	 
	# Does not include Rent for Building Storage or Garage Storage.
	 	 	 	 

3.2 Late Charge; Interest. Tenant acknowledges that late payment by Tenant to Landlord of
rent or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease,
the exact amount of which would be extremely difficult and impractical to ascertain. Such costs
include, but are not limited to, processing and accounting expenses, and late charges that may be
imposed upon Landlord by the terms of any mortgage or deed of trust covering the Premises.
Therefore, in the event Tenant should fail to pay any installment of rent or any other sum due
hereunder within five (5) Business Days after Tenant’s receipt of written notice from Landlord that
said amount was not received when due, Tenant shall pay to Landlord, as Additional Rent, a late
charge equal to five percent (5%) of each such installment or sum. Waiver of said five percent
(5%) late charge with respect to any installment or sum shall not be deemed to constitute a waiver
with respect to any subsequent late charge which may accrue. Notwithstanding anything to the
contrary stated in this Section 3.2, Landlord agrees that it will not assess the late charges
described herein for the first late payment made by Tenant during any twelve (12) month period of
the Term, unless such payment is more than five (5) Business Days past due. Tenant shall also pay
interest on any amounts not paid in accordance with the provisions of Section 18.7. A forty dollar
($40.00) charge will be paid by Tenant to Landlord for each returned check.

3.3 General. All rent and other amounts due to Landlord under this Lease shall be paid to
Landlord in legal tender of the United States at the address to which notices to Landlord are to be
given or to such other address as Landlord may designate from time to time by written notice to
Tenant. At the request of Tenant or Landlord, Tenant shall deliver and Landlord will accept
payment by electronic transfer to such account as Landlord may designate. If Landlord shall at any
time accept rent after it shall come due and payable, such acceptance shall not excuse a delay upon
subsequent occasions, or constitute or be construed as a waiver of any of Landlord’s rights
hereunder.

3.4 Letter of Credit. (a) Tenant shall deliver to Landlord on or before the date of this
Lease an irrevocable, unconditional, specifically assignable letter of credit for $3,000,000 in
form satisfactory to Landlord, which is issued to Landlord and its assigns by a bank satisfactory
to Landlord in its reasonable discretion, and which may be drawn on from Seattle, Washington (the
“Letter of Credit”). Such Letter of Credit shall serve as security for Tenant’s obligations under
this Lease. As used herein, Landlord, Landlord’s lender and their respective successors and
assigns shall each be referred to as a “LOC Party” and collectively as the “LOC Parties.”

(b) The term of the Letter of Credit shall be for no less than one (1) year. At any time and
from time to time, Tenant shall have the right to replace a Letter of Credit with a replacement
Letter of Credit (“Replacement Letter of Credit”) so long as such Replacement Letter of Credit
satisfies the following requirements:

(i) The Replacement Letter of Credit satisfies the requirements set forth in subsection (a)
above.

(ii) The Replacement Letter of Credit is in the face amount of the Letter of Credit being
replaced, subject to the adjustments set forth in this Section 3.5. Upon delivery by Tenant to an
LOC Party of a Replacement Letter of Credit, the LOC Party shall return to Tenant the Letter of
Credit being replaced, and such Replacement Letter of Credit shall then be deemed to be the “Letter
of Credit” for purposes of this Lease.

(c) The Letter of Credit shall be in a form reasonably acceptable to Landlord and shall be
issued by Wells Fargo Bank, N.A. or another bank acceptable to Landlord in its reasonable
discretion. The Letter of Credit shall provide that it may be drawn upon by the LOC Parties by
sight draft at any time whether or not the Lease is in default; provided, however, no LOC Party
shall have the right to draw on the Letter of Credit except as provided in Sections 3.4(d) and
3.4(e) below and Tenant shall have all rights and remedies at law or in equity with respect to any
draw not made in accordance with this Section 3.4.

(d) The LOC Parties may draw on the Letter of Credit if there is an Event of Default under
this Lease and such default continues beyond the applicable cure period set forth in this Lease.
If an LOC Party draws on the Letter of Credit pursuant to this Section 3.4(d), the amount drawn
from the Letter of Credit shall not exceed the actual amount necessary to cure Tenant’s default.
Within thirty (30) days after an LOC Party provides written notice to Tenant that the Letter of
Credit has been drawn upon pursuant to this Section 3.4(d), Tenant shall deliver a Replacement
Letter of Credit to such LOC Party in the amount of the Letter of Credit before it was drawn upon
(subject to the adjustments set forth in this Section 3.4), and the LOC Parties shall return to
Tenant the Letter of Credit drawn upon (if not surrendered in connection with such draw).

(e) The LOC Parties may draw on the Letter of Credit if (i) the Letter of Credit will expire
in accordance with its terms in less than thirty (30) days and (ii) no Replacement Letter of Credit
has been delivered to an LOC Party. If an LOC Party draws on the Letter of Credit pursuant to this
Section 3.4(e), the amount drawn from the Letter of Credit shall serve as a cash security deposit
under this Lease (the “Cash Security Deposit”). If Tenant delivers a Replacement Letter of Credit
to an LOC Party in the amount of the Letter of Credit before it was drawn upon (subject to the
adjustments set forth in this Section 3.4), then the LOC Parties shall return to Tenant the Letter
of Credit drawn upon and the full amount of any Cash Security Deposit.

(f) No Cash Security Deposit shall be considered an advance payment of Rent or a measure of
Landlord’s damages in case of default by Tenant and/or termination of this Lease (including any
extensions and renewals thereof). Tenant shall not be entitled to receive any interest on any Cash
Security Deposit.

(g) In the event of a sale of the Building, Landlord shall have the right to transfer the
Letter of Credit and any Cash Security Deposit to the purchaser of the Building (and the Letter of
Credit shall so provide), and upon such transfer, Landlord shall be released by Tenant from all
liability for the return of the Letter of Credit and the Cash Security Deposit upon the purchaser’s
assumption of such obligations. In such event, Tenant agrees to look solely to the new landlord
for the return of the Letter of Credit and any Cash Security Deposit. Landlord shall be
responsible for any fees or costs associated with transferring the Letter of Credit to the
purchaser.

(h) The Letter of Credit and any Cash Security Deposit shall be returned to Tenant (without
regard to any assignment or encumbrance of the same by Tenant) within ten (10) days after the
earliest to occur of (i) December 31, 2016, (ii) the termination of this Lease (provided the
termination is not the result of a default by Tenant), and (iii) the date when all sums due
Landlord under this Lease as of the earlier of the date listed in clause (i) or the date listed in
clause (ii) have been paid.

(i) Notwithstanding anything to the contrary contained herein, subject to (i) Tenant being
current on all payments due under this Lease, (ii) no other default then existing under this Lease,
and (iii) the Letter of Credit not having been previously drawn upon, the Letter of Credit, at
Tenant’s option, may be reduced by $1,000,000 annually commencing with the fourth year of the Term.
By way of example, after the expiration of the third year of the Term, provided that Tenant has
complied with the terms of this subsection, Tenant may deliver a Replacement Letter of Credit to
the LOC Parties in the amount of $2,000,000 so that the Letter of Credit for calendar year 2015
shall be $2,000,000 and for 2016 shall be $1,000,000.

ARTICLE 4.

ADDITIONAL RENT

4.1 Payment of Operating Expenses. The Project is a “mixed use” facility with different types
of occupancies that have different needs. In order to equitably distribute the Operating Expenses
for tenants throughout the Project, Landlord has segmented the Project into various use types.
These use types include office, data center, colocation, broadcast, and retail facilities.
Portions of the Premises are located within the office, data center and broadcast area of the
Project. Commencing on the Rent Commencement Date, Tenant shall pay its Pro Rata Share (defined
below) of the Operating Expenses incurred each year during the Lease Term, as extended if
applicable, in the operation of each use type of the Project. Tenant’s “Pro Rata Share” shall mean
the ratio of the rentable area then included in the Premises as compared to the total rentable area
in each use type of the Project. At the Commencement Date of the Lease, Tenant’s rentable area of
the Premises is 120,969 RSF.

As of the Commencement Date, Tenant’s Pro Rata Shares of the Operating Expenses for each use
type of the Project are agreed by Landlord and Tenant to be as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Use Type	 	RSF of Project in	 	RSF of Premises in	 	Tenant’s Pro Rata
	 	 	Use Type	 	Use Type	 	Share
	Office

	 	 	129,837	 	 	 	85,694	 	 	 	66.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Data Center

	 	 	89,058	 	 	 	6,318	 	 	 	7.1	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Colocation

	 	 	5,117	 	 	 	0	 	 	 	0.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Broadcast

	 	 	27,432	 	 	 	27,432	 	 	 	100.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Retail

	 	 	23,941	 	 	 	0	 	 	 	0.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Carrier Country

	 	 	4,772	 	 	 	0	 	 	 	0.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Meet Me Room

	 	 	1,357	 	 	 	0	 	 	 	0.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Restaurant

	 	 	10,688	 	 	 	0	 	 	 	0.0	%
	 

	 	 	 	 	 	 	 	 	 	 	 	 

Tenant’s Pro Rata Share of the rentable square feet of each use type in the Project will be
subject to adjustment through the term of the Lease, to the extent that portions of the Project
change from one use type to another. Effective January 1 of each year during the Lease Term,
Landlord will reasonably determine the square footage of the Project that is being used by each use
type, and will apportion the operating expenses of the Project to each use type in a manner which
Landlord reasonably determines in its discretion (by a methodology generally consistent with that
used immediately prior to the Commencement Date) equitably reflects the usage of such use type.
Tenant’s Pro Rata Share of each area of the Project shall be adjusted accordingly. The Office Area
of the Project shall be that portion of the Project at any given time being used by the Project’s
tenants (including Tenant) for general office uses. The Data Center Area of the Project shall be
that portion of the Project at any given time being used by the Project’s tenants (including
Tenant) for computer data centers. The Colocation Area of the Project shall mean that portion of
the Project at any given time being used by the Project’s tenants (including Tenant) for computer
or telecommunication equipment in the Project’s designated Colocation Room(s). The Broadcast Area
of the Project shall mean that portion of the Project at any given time being used by the Project’s
tenants (including Tenant) for radio or television broadcast facilities and studios. The Retail
Area of the Project shall mean that portion of the Project at any given time being used by the
Project’s tenants for retail sales of goods and services. The Central Equipment Room or “CER”
shall mean the Data Center located in Suite 300 of Fisher Plaza East, in which reside UPS Units A,
B, E, and F. Tenant has received a deduction in the rentable square footage of the Premises and
the CER to allow for the space in the CER occupied by Landlord’s UPS’s E and F. Landlord shall
have the right to enter the CER to access, service, and maintain UPS’s E and F on a 24 X 7 basis
without interfering with Tenant’s operations

4.2 Definitions

(a) “Operating Expenses” shall, subject to the exclusions set forth below, mean and include
all reasonable expenses actually incurred by Landlord in connection with operating and maintaining
the Project (or any portion thereof) calculated in accordance with generally accepted accounting
principles (as applicable) and real property management practices, both consistently applied,
including without limitation the following: (1) electricity, gas, water, sewer, storm water, fuel
and other reasonable utility charges (excluding electricity separately metered to and payable by
Tenant or any other tenant of the Project); (2) premiums and commercially reasonable deductibles
not to exceed One Hundred Thousand Dollars ($100,000) for insurance required to be carried pursuant
to Section 12.2 hereof and other insurance carried by Landlord (excluding earthquake insurance, as
to which the deductible may be thirty percent (30%)) which is commercially reasonable and
consistent with the types and levels of insurance carried by prudent institutional investors for
properties similar to the Project in the greater Puget Sound region; (3) maintenance and repair
expenses and supplies, including all costs incurred in connection with service and maintenance
contracts for the items Landlord is responsible for maintaining; (4) amortization on a straight
line basis (calculated over the useful life of the improvement or capital item, as determined by
Landlord using generally accepted accounting principles), for capital expenditures made or incurred
by Landlord (i) for the purpose of complying with legal requirements imposed subsequent to the
Commencement Date or (ii) after the Commencement Date that are intended to result in a net decrease
in Operating Expenses (but only to the extent of the reasonably contemplated decrease – Landlord
agrees that the “useful life” amortization calculations shall be consistently applied among tenants
in the Project); (5)  wages, salaries, reimbursable expenses and benefits of all on-site
and off-site personnel (including supervisory personnel who are directly involved in the management
of the Project) engaged in the operation, repair, maintenance and security of the Project
(prorated, in the case of employees, including supervisory personnel, performing services for one
or more properties, on the basis of the reasonably allocated number of hours spent performing
services for the Project) and the direct costs of training such employees; (6) reasonable third
party legal fees, administrative expenses, and accounting and other professional fees and expenses,
for the Project; (7) charges for security, janitorial, and cleaning services and supplies furnished
to or for Common Areas serving the Project; (8) costs of maintaining any Common Areas and
facilities or service amenities benefiting the Project; (9) expenses of landscaping and grounds
maintenance; (10) the reasonable cost of maintaining a management office (but not any leasing
office) in the Project (including any allocated rent related solely to portions of such office
dedicated to property management); (11) Taxes (defined below); (12) reasonable and customary
management fees not to exceed three (3) percent (3%) of the Base Rent, Operating Expenses, and
parking revenue for the Project during the initial Term of this Lease or any Extended Term; and
(13) any other expense reasonably incurred by Landlord in maintaining, repairing or operating the
Project for its intended purpose; provided, that any of the above categories of expenses that
solely benefit any specific use type of the Project (or its occupants) shall be one hundred percent
(100%) allocated to that use type of the Project, (or its occupants). To the extent Tenant pays
for HVAC, electrical power, or other utilities or any services directly (including contracting for
its own janitorial services), the cost of providing such services to other tenant premises shall be
excluded from Operating Expenses charged to Tenant.

Operating Expenses shall not include (a) the cost of any capital improvement or capital repair
to the Project except as otherwise provided above in this Section 4.2(a) including for the
foundation, roof or exterior walls of the Buildings or to the extent the costs result from
Landlord’s negligent performance of Landlord’s repair or maintenance obligations hereunder; (b) the
cost of repairs or other work to the extent Landlord is reimbursed by insurance (or that would have
been reimbursable by insurance had Landlord carried the insurance required to be carried by
Landlord under this Lease) or condemnation proceeds, other than the amount of any commercially
reasonable deductible payable under any insurance policy; (c) expenses Landlord incurs in
connection with leasing or procuring tenants or renovating space for new or existing tenants,
including brokerage commissions, lease concessions, rental abatements and construction allowances,
costs and fees including, without limitation, legal fees attributable to leasing, construction
management, lease enforcement and collection activity; (d) violations by Landlord relating to the
Premises, including, without limitations, any violation of an Environmental Law (hereinafter
defined) not arising from or attributable to a default by Tenant hereunder; (e) interest or
principal payments on any mortgages or other indebtedness of Landlord; (f) ground lease payments;
(g) the cost of repairs or other work to the extent Landlord is reimbursed by condemnation
proceeds; (h) sale or financing costs incurred in connection with the sale, financing or
refinancing of the Buildings and organizational expenses associated with the creation and/or
operation of the ownership entity that constitutes Landlord, Landlord or owner related corporate
accounting costs, or other Landlord administrative and overhead costs; (i) advertising, promotion,
charitable and tenant relations or party expenses; (j) any cost that does not benefit the Project;
(k) any amounts paid to subsidiaries of Landlord or any person or entity that directly or
indirectly through one or more intermediaries controls or is controlled by or is under common
control with Landlord (“affiliate”) for services on or to the Project, to the extent that such
above-described services exceed competitive costs for such services rendered by persons or entities
of similar skill, competence and experience other than a subsidiary or affiliate of Landlord; (l)
any amount for which Landlord is entitled to payment directly by a tenant or non-tenant other than
as an Operating Expense, (m) the cost of repairs to the structural portions of the Buildings; (n)
the cost of repairs for which Landlord is responsible under Sections 16 and 17 of this Lease; (o)
fines, interest and penalties incurred due to the late payment of Taxes or Operating Expenses; (p)
any penalties or damages that Landlord pays to Tenant under this Lease or to other tenants in the
Project under their respective leases; (q) any fines, penalties, damages, costs, claims, or
interest resulting from the negligence or willful misconduct of the Landlord or its agents,
contractors, or employees; (r) Landlord’s charitable and political contributions; (s) attorneys’
fees and other expenses incurred in connection with negotiations or disputes with prospective
tenants or occupants, or existing tenants or occupants of the Project (other than disputes with
respect to non-financial matters generally applicable to all tenants and occupants of the
Property),(t) the cost or expense of any services or benefits provided generally to other tenants
in the Project and not provided or available to Tenant; (u) costs incurred by Landlord in
connection with the correction of defects in design and original construction of the Buildings or
the Project; (v) expenses for the replacement of any item covered under warranty; (w) fines or
penalties incurred as a result of violation by Landlord or any Landlord Parties of any applicable
Legal Requirements; (x) reserves; (y) costs, liabilities and losses relating to the abatement or
cleanup of Hazardous Materials; and (z) insurance deductibles used to pay for restoration of any
casualty damage that results in the termination of this Lease pursuant to Section 16.1 of this
Lease.

(b) “Taxes” shall mean and include (i) all taxes on real property, all taxes on machinery,
equipment or other personal property used in the operation or maintenance of the Project (or any
portion thereof), ad valorem taxes, surcharges, general and special assessments and impositions,
general and special, ordinary and extraordinary, foreseen or unforeseen, of any kind levied or
imposed upon the Building or the Project, or any fixtures of Landlord thereon or therein, or
imposed in connection with the use thereof (including any transit, personal property (subject to
the provisions above), sales, rental, use, gross receipts and occupancy tax and other similar
charges); (ii) any other present or future taxes or governmental charges that are imposed upon or
assessed against the Building or the Project, including, but not limited to, any tax levied on or
measured by the rents payable by tenants in the Project that are in the nature of, or in
substitution for, real property taxes; (iii) any assessments against the Building or the Project,
or against Landlord with respect to the Building or the Project, by any association now or
hereafter established to administer, oversee or enforce common covenants or other rules and
regulations to which the Building or Common Areas are subject or to operate, maintain, repair or
replace common or public areas or facilities thereof; (iv) all taxes which are imposed upon
Landlord, and that are assessed against the value of any improvements to the Premises made by
Tenant or any machinery, equipment, fixtures or other personal property of Tenant used therein; and
(v) all of Landlord’s reasonable costs and expenses of contesting the validity or amount of any
such Taxes, so long as such costs are charged on an hourly basis (and not a contingency fee) and so
long as Landlord has a reasonable, good faith basis for believing it will prevail in such contest.
Taxes shall not include any income taxes, excess profits taxes, excise taxes, franchise taxes,
estate taxes, inheritance taxes, succession taxes, grantor’s taxes, recordation taxes, and transfer
taxes, except to the extent such taxes fall within clause (ii) above. If Landlord contests Taxes
for any calendar year contained within the Lease Term and such contest results in a decrease in
Taxes for such calendar year, the Landlord shall credit against the monthly installments of Base
Rent next coming due (or pay to Tenant directly if the refund occurs after the end of the Lease
Term) Tenant’s proportionate share of such refund, less Landlord’s reasonable costs and expenses
charged on an hourly basis (and not a contingency fee) for contesting the validity or amount of any
such Taxes, but only up to an amount equal to the payment made by Tenant for such calendar year on
account of Taxes. If Landlord contests the Taxes for any calendar year and such contest results in
an increase in Taxes for such calendar year, Landlord shall have the right to bill Tenant for prior
underpayments of Taxes thereby resulting. Landlord’s and Tenant’s obligations under this Section
4.2 shall survive the expiration of the Lease Term.

4.3 Proration. Tenant’s obligation to pay Operating Expenses for any calendar year during the
Lease Term shall be apportioned so that Tenant shall pay only that portion of Tenant’s Pro Rata
Share of Operating Expenses for such year as fall within the Lease Term. This provision shall
survive the expiration or earlier termination of this Lease for a period of twenty-four (24)
months.

4.4 Limit on Annual Increases; Adjustment for Vacancy. Notwithstanding the foregoing, during
the Term of this Lease (but following the first full calendar year during the Term) including any
extension thereof (with the exception of Uncontrollable Expenses as defined herein), Tenant’s pro
rata share of Operating Expenses for any calendar year shall not exceed one hundred percent (100%)
of Tenant’s total liability for Operating Expenses for the immediately preceding calendar year of
the Lease Term, as extended if applicable (excluding Uncontrollable Expenses), multiplied by the
greater of (x) three and one-half percent (3.5%) or (y) the percentage increase between the CPI
(hereinafter defined) on the first day of the immediately preceding calendar year and the CPI on
the first day of the calendar year for which this limitation is being determined, on a cumulative,
annually compounding basis. The term “CPI” as used herein shall mean the “All Items Component” of
the Consumer Price Index for All Urban Consumers (1982-1984=100), Seattle-Tacoma-Bremerton, WA, or
its successor, as published by the Bureau of Labor Statistics of the U.S. Department of Labor. The
term “Uncontrollable Expenses” as used herein means expenses for the cost of utility consumption
(not delivery and installation), insurance, real estate taxes and assessments, and other expenses
not directly controllable by Landlord such as, but not limited to, increases in the minimum wage or
collective bargaining/union wages that affect the cost of service contracts.

During any period that the average occupancy rate for the entire Project shall be less than
ninety percent (90%), then, for purposes of calculating the Additional Rent payable by Tenant
pursuant to this Article 4 for each calendar year, the Operating Expenses for such calendar year
that fluctuate depending on the level of occupancy of the Project shall, subject to Section 4.1 of
this Lease, be increased by the amount of additional costs and expenses that Landlord reasonably
estimates would have been incurred if the average occupancy rate for the entire Project had been
ninety percent (90%). Expenses under this Section 4.4 shall be calculated in good faith by
appropriately adjusting the cost of those components of Operating Expenses that are impacted by
changes in the occupancy of the Project.

4.5 Estimated Payments. Commencing on the Rent Commencement Date, and on the first day of
each month thereafter, Tenant shall make estimated monthly payments to Landlord on account of the
Operating Expenses that are expected to be incurred during each calendar year falling entirely or
partially within the Lease Term. The amount of such monthly payments shall be determined as
follows: commencing with the Rent Commencement Date and at the beginning of each calendar year
thereafter, Landlord shall submit to Tenant a statement setting forth Landlord’s reasonable
estimate of the Operating Expenses that are expected to be incurred during such calendar year and
Tenant’s Pro Rata Share thereof (as determined in accordance with Section 4.1 hereof), provided
that, if Landlord has not provided Tenant with the estimated Operating Expenses prior to the
beginning of any calendar year, Tenant shall continue to pay Tenant’s Pro Rata Share thereof at the
same rate as Tenant paid for the prior calendar year until Landlord shall have delivered an
estimate for that year. Tenant shall pay to Landlord on the first day of each month following
receipt of such statement during such calendar year an amount equal to Tenant’s Pro Rata Share of
the anticipated Operating Expenses multiplied by a fraction, the numerator of which is one (1) and
the denominator of which is twelve (12). Not more than one time per year of the Term, Landlord may
modify the amount of the anticipated Operating Expenses to reflect Landlord’s reasonable estimate
of such expenses for the year. As soon as reasonably practicable after the expiration of each
calendar year, but in any event no later than April 30th of each calendar year, Landlord shall
submit to Tenant a statement (the “Reconciliation Statement”), showing (i) the Operating Expenses
actually incurred during the preceding calendar year and Tenant’s Pro Rata Share thereof, and (ii)
the aggregate amount of the estimated payments made by Tenant on account thereof. If the aggregate
amount of such estimated payments exceeds Tenant’s actual liability for such Operating Expenses,
then Landlord shall, at Landlord’s option, either credit such excess against the next rent payment
or payments due from Tenant, or pay Tenant the excess at the time Landlord furnishes the
Reconciliation Statement. If the adjustment is to be made following the expiration or termination
of the Lease Term, then Landlord shall pay Tenant the excess. If Tenant’s actual liability for
such Operating Expenses exceeds the estimated payments made by Tenant on account thereof, then
Tenant shall pay to Landlord the total amount of such deficiency within ninety (90) days after
Tenant’s receipt of the Reconciliation Statement from Landlord. Provided, however, that
notwithstanding anything to the contrary set forth in this Lease, the total amount of Operating
Expenses liability of Tenant for any calendar year shall not exceed the limits described in Section
4.4 hereof. The provisions of this Section 4.5 shall survive the expiration or earlier termination
of this Lease.

4.6 Audit. So long as there is no Event of Default under this Lease whereby Tenant owes
Landlord more than one month’s Base Rent or Additional Rent, Tenant shall have the right to conduct
an audit of Landlord’s books and records relating to Operating Expenses during the immediately
preceding two (2) calendar years, provided that Tenant delivers to Landlord written notice of its
intent to audit within (a) ninety (90) days after receipt by Tenant of the Reconciliation Statement
for either of the two (2) years or (b) one hundred twenty (120) days after expiration of this
Lease. Tenant must complete such audit within one hundred twenty (120) days after the date of
Tenant’s notice of intent to audit, and may audit no more than once per calendar year except as
otherwise provided herein. Tenant’s audit shall be conducted by Tenant or an agent of Tenant (who
shall not be employed or engaged on a contingency basis, in whole or in part) during regular
business hours at a reasonable time and place at the Property. Landlord shall maintain its books
and records in a condition capable of being audited by Tenant for a period of at least five (5)
years from the date of delivery of the applicable Reconciliation Statement (or any supplement or
correction thereto). The results of Tenant’s audit shall be provided to Landlord within ten (10)
Business Days after the completion of the inspection. If Landlord desires to contest the result of
Tenant’s inspection, Landlord may do so within ten (10) Business Days of its receipt of the
inspection results, by submitting the results of the inspection to binding arbitration administered
by the American Arbitration Association in accordance with its Commercial Arbitration Rules, to be
conducted by a single arbitrator with not less than ten (10) years’ experience in arbitrating
issues related to commercial real estate leases. If the audit report or arbitration establishes
that the amount Landlord charged Tenant for Tenant’s Pro Rata Share of Operating Expenses was
greater than the amount this Article 4 obligates Tenant to pay, Landlord shall refund the excess
amount to Tenant, together with interest on the excess amount at the rate per annum that is three
percent (3%) higher than the prime rate of interest publicly announced by Wells Fargo Bank or its
successor from time to time (“Prime Rate”) (computed from the date of Landlord’s Reconciliation
Statement) within thirty (30) days after Landlord receives a copy of the audit report or the
arbitration is completed. If the audit report or arbitration establishes that the amount Landlord
charged Tenant for Tenant’s Pro Rata Share of Operating Expenses was less than the amount this
Article 4 obligates Tenant to pay, Tenant will pay to Landlord, as Additional Rent subject to the
provisions of Section 4.5, the difference between the amount Tenant paid and the amount determined
in the audit or arbitration, together with interest on the underpaid amount at the Prime Rate,
within thirty (30) days after Landlord receives a copy of the audit report or the arbitration is
completed. If the audit establishes that the amount Landlord charged Tenant for Tenant’s Pro Rata
Share of Operating Expenses exceeded the amount this Article 4 obligates Tenant to pay by three
percent (3%) or more, and either (i) Landlord does not contest the result of the audit or (ii)
Landlord does contest the results of the audit and the results of the arbitration affirm that the
amount Landlord charged Tenant for Tenant’s Pro Rata Share of Operating Expenses exceeded the
amount this Article 4 obligates Tenant to pay by three percent (3%) or more, then Landlord shall,
within ten (10) Business Days of receipt of written request accompanied by documentation reasonably
satisfactory to Landlord, reimburse Tenant for the reasonable out-of-pocket, third party costs
incurred by Tenant in conducting the audit. In the case of arbitration, the non-Prevailing Party
shall pay to the Prevailing Party all attorneys’ fees and costs as provided in Section 24.18 of
this Lease. The arbitrator shall have the exclusive, reasonable authority to determine which party
was the prevailing party in the arbitration. Tenant must keep all information it obtains in any
audit strictly confidential, may only use such information for the limited purpose this Section 4.6
describes and for Tenant’s own account, and shall not be discussed with nor disclosed to any third
party, except for disclosures required by applicable law, court rule or order, or in connection
with any litigation or arbitration involving Landlord or Tenant.

(a) Landlord shall notify Tenant of any necessary or appropriate correction or adjustment of
Operating Expenses reflected on any previously given Reconciliation Statement, within thirty (30)
days after Landlord learns of the facts supporting such correction or adjustment. If Landlord
fails to notify Tenant of a correction or adjustment to a previously given Reconciliation Statement
within two (2) years after the Reconciliation Statement has been delivered to Tenant and such
correction or adjustment would increase the amount payable by Tenant, then, in any such case,
Landlord shall have waived its right to thereafter correct the calculation of Operating Expenses
for the year in question and/or adjustment with respect to Landlord calculation set forth on such
Reconciliation Statement shall be final (except with respect to any manifest error or intentional
misconduct by Tenant), provided that, with respect to Taxes, Landlord shall not be time-barred from
delivering a correction to its calculation of Taxes if such correction is made due to a change in
Taxes assessed to the Project by the applicable governmental authority after the Reconciliation
Statement, in which case Landlord shall have an additional 180 days from receipt of such assessment
to deliver notice of a correction to the previously given Reconciliation Statement. If Tenant
fails to notify Landlord that Tenant intends to audit Landlord’s calculation of Operating Expenses
within two (2) years after the later of the date of a Reconciliation Statement thereof or the
correction or adjustment thereof has been delivered to Tenant, or, if Tenant fails to conclude its
audit or inspection within two (2) years after the later of the date that the Reconciliation
Statement or the correction or adjustment thereof has been delivered to Tenant, then, in any such
case, Tenant shall have waived its right to object to the calculation of Operating Expenses for the
year in question and the calculation set forth on such Reconciliation Statement shall be final
(except with respect to any manifest error or intentional misconduct by Landlord) provided that,
with respect to a change in the Taxes, Tenant shall not be time-barred from contesting its
calculation of the change in the Taxes within two (2) years from the date Tenant receives written
notice of a change in Taxes assessed to the Project.

(b) If the Tenant has commissioned an independent audit of Operating Expenses, and the result
of the audit reflects an overpayment by Tenant, and Landlord thereafter elects to arbitrate such
findings, then Tenant shall not be in default under this Lease for failing to pay such “Additional
Rent” if it elects not to continue to pay the amount the auditor ascertained was an overcharge
during the pendency of such arbitration, so long as Tenant pays any shortfall within the time
period required under this Article 4 following the conclusion of the arbitration.

(c) If Tenant’s audit of Operating Expenses shows that the calculation of Operating Expenses
in any particular category is in error by more than three percent (3%) for more than one calendar
year, then Tenant shall have the right, on written notice to Landlord, to conduct an audit of
Operating Expenses for three (3) additional years prior to the term initially audited by Tenant.

4.7 Power.

	 	 	 	 	 
	Data Center/Technical	 	Primary Tap Size	 	Redundant Tap Size
	Areas	 	(Amperes of 480 VAC)	 	(Amperes of 480 VAC)
	CER (Suite 300)

	 	600 Amperes
	 	600 Amperes
	 

	 	 
	 	 
	CER — UPS (Suite 305)

	 	600 Amperes
	 	600 Amperes
	 

	 	 
	 	 
	Dimmer Room (Suite 610)

	 	600 + 400 Amperes
	 	None
	 

	 	 
	 	 

Tenant’s primary and redundant power may be subject to subsequent increase or reduction as
described below in this Section 4.7 and in Section 13.4.

4.7.2.2 In the event Tenant requires electrical capacity in excess of the originally
agreed Rated Load, Landlord shall install such additional capacity at Tenant’s expense (but
only to the extent such added capacity exclusively serves Tenant), in accordance with the
terms and conditions set forth in Section 13.4. Notwithstanding the foregoing, to the
extent such added capacity does not exclusively serve Tenant, but Landlord incurs expenses
to add such capacity and Landlord has no further use for such capacity, Tenant shall be
responsible for all such expenses. Tenant hereby acknowledges that Landlord has the right
to reserve electrical capacity to serve all currently contemplated uses at the Project even
with respect to currently unoccupied space at the Project. In the event Tenant requires a
reduction in electrical capacity in any portion of the Data Center / Technical Areas,
Landlord shall reduce such capacity within thirty (30) days after written notice from
Tenant. Landlord and Tenant agree that the audit rights, deadlines and conclusive nature of
uncontested statements agreed upon in connection with Operating Expenses shall also apply to
electrical service bills.

4.7.3 Landlord acknowledges that Tenant currently leases space on real property owned
by a third party located near the Project at 4th Avenue and Denny for purposes of parking
vehicles related to its business operations and storing related equipment (the “4th and
Denny Property”). The 4th and Denny Property is served by separately metered electrical
service originating from the Project. Tenant shall pay to Landlord the cost of such
separately metered electrical service in the manner and at the rates charged to Landlord
by Seattle City Light, without profit or markup.

4.8 Chilled Water Charges. Landlord will provide chilled water from the Landlord’s chiller
system for Tenant’s HVAC system, separately metered, which meter(s) shall be installed by Tenant,
at its sole cost and expense. Tenant shall pay for chilled water usage, as Additional Rent, on a
monthly basis within thirty (30) days after such charges are billed by Landlord. Tenant will be
billed for its actual usage of chilled water based on Landlord’s full and complete costs for
chilled water (without markup) (“Chilled Water Charges”). In the event Tenant requires a supply of
chilled water in excess of the amount being supplied as of the Commencement Date, Landlord shall
take reasonable actions to provide such additional supply to be paid for by Tenant at the rate set
forth above (but Landlord shall not be required to install additional cooling towers for the sole
purpose of serving Tenant). Landlord shall use good faith efforts to provide chilled water to
Tenant at the lowest reasonable cost for same. Adjustments to Tenant’s Chilled Water Charges shall
reflect the costs of delivering chilled water to Tenant and may not be made as a result of costs
related to increasing the capacity of the system for other users. Landlord shall provide
statements for the Chilled Water Charges to Tenant within thirty (30) days from the end of the
month for which such charges relate. Landlord and Tenant agree that the audit rights, deadlines
and conclusive nature of uncontested statements agreed upon in connection with Operating Expenses
shall also apply to Chilled Water Charges.

ARTICLE 5.

SECURITY

The main entrance doors to the Buildings, including the appurtenant Garage, are, and shall
continue to be, equipped with a card reader security system. Tenant currently has access cards.
Landlord shall provide additional or replacement cards at a cost to Tenant equal to the rates
Landlord charges other tenants of the Project. In addition, if Landlord installs a security system
that requires the replacement of Tenant’s access cards with other cards (or similar devices),
Landlord shall provide such new cards or devices to replace all of Tenant’s access cards, at no
cost to Tenant.

At the Commencement Date, Tenant is using the Project’s security system, with Landlord’s
consent and at no additional charge to Tenant. Subject to Landlord’s review and approval of the
plans and specifications for such system, Tenant shall be entitled to install, at Tenant’s sole
cost and expense, and otherwise in accordance with this Lease, a security system inside the
Premises. Tenant shall coordinate any such additional security system with the main security
system of the Building and the Project (such that such systems shall be compatible) and Landlord
shall at all times have emergency access to such security system and the areas of the Premises
protected thereby. Landlord shall provide and maintain security for the Building in accordance
with Landlord’s standard security procedures and the specifications set forth in Exhibit E.
If there is a conflict between the Landlord’s standard security procedures and the specification
set forth in Exhibit E, the specifications set forth in Exhibit E shall control.

Landlord and Tenant hereby acknowledge that (a) a portion of the structured cabling for the
existing security system and the Building management control system (also known as the Alerton
Building Management System) is contained within the Premises and (b) the parties have agreed to
relocate such portions pursuant to Section 5.5.9 of the PSA. During any period when such portions
remain in the Premises, Landlord shall at all times have access to the area of the Premises where
such cabling is located to maintain and repair such cabling, subject to conditions (w) through (z)
set forth in Section 11.1 below, and Tenant covenants and agrees not to damage or alter such
cabling.

ARTICLE 6.

USE OF PREMISES AND PROPERTY

6.1 Tenant’s Permitted Uses. Tenant may use and occupy the Premises for any lawful use,
including but not limited to office uses, broadcasting and communications services, for operation
of a network operations center and/or computer data center, with equipment provided or owned by
Tenant or third parties, and related ancillary purposes and uses including, without limitation,
general office, storage, assembly and repair (“Permitted Uses”). In addition, Tenant shall have
the rights described in Section 1.5 above pertaining to the Project rooftop. Tenant may permit its
affiliates, customers, correspondents, and program providers to enter upon the Premises and to
locate, install, operate and maintain their equipment and personal property at the Premises during
the Lease Term and to avail themselves of any services provided to the Premises consistent with
Tenant’s use thereof, without any such activity being deemed to constitute an assignment,
subletting or other transfer in violation of this Lease or requiring Landlord’s prior consent.
Landlord shall not be entitled to share in any of Tenant’s profits, rents or income derived by
Tenant in connection with such use of the Premises by Tenant’s affiliates, customers,
correspondents, and/or program providers.

Tenant shall not use or occupy the Premises for any unlawful purpose or in any manner that
will constitute waste, nuisance or unreasonable annoyance to Landlord or other occupants of the
Building. Tenant’s use of the Premises shall also comply with all applicable present and future
laws, ordinances, regulations, and orders (collectively, “Legal Requirement(s)”), concerning the
use, occupancy and condition of the Premises and all machinery, equipment and furnishings therein.

6.2 Compliance by Tenant. Except as otherwise provided in this Lease, Tenant shall, at
Tenant’s sole cost and expense, promptly comply with all laws, ordinances, rules, regulations,
orders and other requirements of any government or public or quasi-public authority that are now in
force or that may hereafter be in force, with all requirements of any board of fire underwriters or
other similar body now or hereafter constituted, and with all directions and certificates of
occupancy issued pursuant to any law by any governmental agency or officer, insofar as any thereof
relate to or are required by Tenant’s particular use of the Premises or the operation, use or
maintenance of any personal property, trade fixtures, machinery, equipment or improvements
installed by Tenant in the Premises. Tenant shall not be required to make structural changes to the
Premises or Buildings unless specifically required by the terms and conditions of this Lease or for
any alteration or improvement that Tenant makes in the Premises or the Project, provided, that if
structural changes are so required, Landlord shall make any such required structural changes upon
Tenant’s request at Tenant’s expense. Tenant shall be responsible for obtaining all permits
required in connection with Tenant’s occupancy and use of the Premises, including certificates of
occupancy, Tenant’s business license, and any permits required in connection with equipment being
installed by Tenant. Tenant shall promptly pay all fines, penalties and damages that may arise out
of or be imposed on Landlord or Tenant (to the extent non-payment could adversely affect Landlord)
because of Tenant’s failure to comply with the provisions of this Section 6.2; provided, however,
Tenant shall have no obligation to pay to Landlord or otherwise any fine, penalty and/or damages
that may arise out of or be imposed as the result of Tenant’s compliance with a specific direction
or request by Landlord unless such direction or request by Landlord is otherwise required or
permitted under the terms of this Lease. Landlord shall promptly pay all fines, penalties and
damages that may arise out of or be imposed on Landlord or Tenant (to the extent non-payment could
adversely affect Tenant) because of Landlord’s failure to comply with the provisions of this Lease;
provided, however, Landlord shall have no obligation to pay to Tenant or otherwise any fine,
penalty and/or damages that may arise out of or be imposed as the result of Landlord’s compliance
with a specific direction or request by Tenant unless such direction or request by Tenant is
otherwise required or permitted under the terms of this Lease. Landlord shall reasonably cooperate
with Tenant, without delay, with regard to Tenant’s compliance with this Section 6.2.

6.3 Tenant’s Exclusive Use. Subject to the rights of other tenants occupying the Project as
of the Closing, Landlord shall not, but Tenant may, during the Term of this Lease, allow any
broadcast, news or local media company to use, occupy, or lease space or facilities at the Project,
including the Garage, data center, rooftop, antenna, colocation, connectivity, entry, or other
space or facilities, without the prior written consent of Tenant, which Tenant may withhold in its
sole discretion.

6.4 Compliance by Landlord. Landlord shall promptly comply with all laws, ordinances, rules,
regulations, orders and other requirements of any government or public or quasi-public authority
that are now in force or that may hereafter be in force, with all requirements of any board of fire
underwriters or other similar body now or hereafter constituted, and with all directions and
certificates of occupancy issued pursuant to any law by any governmental agency or officer, insofar
as any thereof relate to or are required by the condition, use or operation of the Property and
Premises (except to the extent the obligation is imposed on Tenant by Section 6.2) generally or the
general operation, use or maintenance of any of Landlord’s personal property, trade fixtures,
machinery, equipment or improvements at the Property or Premises. It is expressly understood that
if any Legal Requirement requires any other permit(s) for the Property (or any portion thereof) due
to Landlord’s use or operation thereof, or Landlord’s improvements or future alterations thereto,
Landlord shall obtain such permit(s) at Landlord’s own expense. Landlord will not knowingly allow
another tenant of the Project to have a permitted use that is in violation of Legal Requirements
and upon becoming aware of any violation shall use commercially reasonable efforts to cause such
tenant to cease the violation. Notwithstanding the foregoing, in no event shall Landlord have any
liability to Tenant for the noncompliance by other tenants or any other person with respect to any
of the foregoing requirements.

6.5 Compliance on Delivery Date. Notwithstanding any other provision herein to the contrary,
the parties acknowledge and agree that if the Project (not including the Premises or other tenant
spaces) is not in compliance with all Legal Requirements on the Commencement Date, Landlord shall
bear all costs of securing such compliance, except those items that are included within Tenant’s
responsibilities pursuant to this Lease.

6.6 Taxes on Tenant’s Exclusive Use or Property. Tenant shall pay any business, rent or other
taxes that are now or hereafter levied upon Tenant’s exclusive use or occupancy of the Premises,
the conduct of Tenant’s business at the Premises, or Tenant’s equipment, fixtures or personal
property. If any such taxes are enacted, changed, or altered so that any of such taxes are levied
against Landlord, or the mode of collection of such taxes is changed so that Landlord is
responsible for collection or payment of such taxes, Tenant shall pay any and all such taxes to
Landlord upon written demand from Landlord.

ARTICLE 7.

ASSIGNMENT AND SUBLETTING

7.1 Transfer. Except as otherwise provided in this Lease, Tenant shall not have the right to
assign, transfer, mortgage or otherwise encumber this Lease or to sublease or permit anyone to use
or occupy the Premises or any portion thereof, without the prior written consent of Landlord, which
consent shall not be unreasonably withheld, conditioned or delayed, provided that the
reasonableness standard shall be that of other owners of Class A commercial real estate in the
market area. Except as otherwise provided herein, no assignment or transfer of this Lease or the
right of occupancy hereunder may be effectuated by operation of law or otherwise without the prior
written consent of Landlord. Any attempted assignment or transfer by Tenant of this Lease or its
interest herein or sublease of the Premises or any portion thereof in violation of this Article 7
shall, at the option of Landlord, constitute an Event of Default under this Lease. Except with
respect to a transfer to an Affiliate as set forth in Section 7.3 hereof, Tenant agrees to give
Landlord at least ten (10) Business Days’ advance written notice of Tenant’s intention to assign or
transfer this Lease or to sublease the Premises or any portion thereof, and except for transfers to
an Affiliate pursuant to Section 7.3, Tenant shall also provide sufficient information about the
proposed assignee or transferee or sublessee to enable Landlord to make the determination called
for above.

7.2 Landlord Consent. The consent by Landlord to any assignment or subletting shall not be
construed as a waiver or release of Tenant from any and all liability for the performance of all
covenants and obligations to be performed by Tenant under this Lease nor shall the collection or
acceptance of rent from any assignee, transferee or subtenant constitute a waiver or release of
Tenant from any of its liabilities or obligations under this Lease. Landlord’s consent to any
assignment or subletting shall not be construed as relieving Tenant from the obligation of
complying with the provisions of Section 7.1 hereof, as applicable, with respect to any subsequent
assignment or subletting. Excluding the transfers described in Section 7.3, Tenant further agrees
to submit any and all instruments of assignment and sublease to Landlord (other than with regard to
Affiliates) at least ten (10) days in advance for Landlord’s prior written approval, which approval
shall not be unreasonably withheld, conditioned or delayed but which instruments, as an express
condition precedent to Landlord’s prior approval, shall provide that (i) such sublease or
assignment is subject and subordinate to this Lease in all respects, and to any amendments,
modifications, renewals, extensions or expansions hereof, (ii) such assignee or sublessee shall
conduct a business in the Premises that is a Permitted Use pursuant to Article 6 of this Lease,
(iii) in the case of an assignment, such assignee is bound by the terms and conditions of this
Lease and assumes all of the obligations and liabilities of Tenant hereunder arising after the
effective date of the assignment, (iv) in the case of a sublease, (A) Landlord is not, and will not
become, a party to such sublease, and (B) Landlord’s consent to such sublease does not create a
contractual relationship between Landlord and such sublessee, nor does it create any liability of
Landlord to such sublessee, (v) Landlord’s consent to such assignment or sublease does not affect
the obligations of Landlord or Tenant under this Lease, and (vi) Landlord’s consent to such
assignment or sublease shall not be construed to mean that Landlord has approved any plans or
specifications for renovations to the Premises intended by such assignee or sublessee and that any
such work to the Premises must be conducted in accordance with the terms of this Lease. The
foregoing shall not be construed as limiting or waiving Landlord’s right, under this Article 7, to
consent to an assignment, transfer, mortgage or other encumbrance of this Lease. With respect to
any written request from Tenant for an assignment, sublease or transfer of any interest in this
Lease, Landlord shall respond to Tenant’s written request for Landlord’s consent thereto within ten
(10) days of Landlord’s receipt of such request. Failure to respond within such ten (10) day
period shall be deemed approval of such assignment, sublease or transfer.

7.3 Affiliate Transfers. Notwithstanding anything to the contrary contained herein, Tenant
shall have the right, without the consent of Landlord, but upon written notice to Landlord within
ten (10) Business Days after the effective date of any such transfer, and in accordance with the
other provisions of this Article 7 as if consent had been obtained, to assign this Lease as to all
or any part of the Premises, or sublet the whole or part of the Premises to (i) any person or
entity that directly or indirectly through one or more intermediaries controls, is controlled by,
or is under common control with Tenant; (ii) any successor entity resulting from a merger or
consolidation with Tenant; or (iii) any entity that acquires all or substantially all of the assets
of any business unit of Tenant, and that occupies any portion of the Premises, in one or more
transactions (each of the persons and entities described in (i)-(iii) hereinafter called an
“Affiliate”), provided that such transfer is not for purposes of avoiding Tenant’s obligations
hereunder. As used in this Article 7, “control” means the power to direct or cause the direction
of the day-to-day management and policies of such entity, whether through the ownership of voting
securities, by contract, by interlocking boards of directors, or otherwise. Provided that the
transferee Affiliate (a) has a credit worthiness comparable to that of Tenant, or (b) provides a
Letter of Credit (the “New LC”) in an initial amount equal to $500,000 multiplied by the remaining
years, or portions thereof, in the initial Lease Term and then proportionally adjusted to reflect
the percentage of the Rent payable under this Lease represented by the Rent to be paid by the
Affiliate, Tenant shall be released from the obligations of Tenant under this Lease as to the
portion of the Premises so assigned or sublet to the Affiliate. The New LC shall be on terms
otherwise consistent with the requirements of Section 3.4 of this Lease; provided, however, the New
LC shall remain in place for the balance of initial Lease Term but shall be reduced each year on a
straight line basis. By way of example, if Tenant proposes such an assignment for an Affiliate not
meeting the credit worthiness standard when six (6) years remain on the initial Lease Term, and for
half the amount of the Rent being paid by Tenant then, if Tenant seeks to be released under this
Lease, then the New LC shall be equal to $3,000,000 (six (6) years times $500,000) divided by two
(2), or $1,500,000 and the New LC would be reduced on each anniversary of the assignment by
$250,000). If a New LC is provided as described herein, Tenant’s Letter of Credit shall be reduced
by an equal amount.

ARTICLE 8.

MAINTENANCE AND REPAIRS

8.1 Landlord’s Maintenance. Subject to Articles 16 and 17, Landlord shall keep in good
working order, test, and maintain the foundation and other structural components, roof and exterior
envelope of the Building, Common Areas, all equipment installed, owned, or operated by Landlord
outside of the Premises, including the building standard fire protection systems located throughout
the Building, as well as all mechanical, plumbing, heating, ventilation, air conditioning, power
generation, on-site fuel supplies, sprinkler and electrical systems and utility service lines of
the Building serving the Premises (including but not limited to the major Landlord systems such as
generators, including the generators supporting Tenant’s operations and operations of the Project,
any electrical distribution equipment, Landlord’s UPS equipment, chillers, cooling towers, chilled
water pumps, chilled water piping, and associated infrastructure equipment such as water treatment
and other infrastructure support systems), the telecommunications conduits, risers, cables, vaults
and manholes, Meet Me Room, demarc rooms, the plumbing system outside the Premises that does not
exclusively serve the Premises, all equipment, furnishings, fixtures and other personal property
used by Landlord in the operation of the Project, the Garage, and the driveways, parking and
grounds adjacent to the Buildings, as well as the Common Areas, fully operational and in good
operating condition and repair, and otherwise maintained consistent with first class office,
retail, broadcast, and data center standards. The reasonable costs incurred by Landlord in
maintaining, repairing and replacing such items shall be included in the Operating Expenses of the
Property to the extent permitted in Section 4.2 hereof. To the extent Landlord’s repair and
maintenance obligations set forth in this Section 8.1 require access to or through the Premises,
except in the event of emergency, Landlord shall first coordinate such access with Tenant so as to
minimize the interference with Tenant’s business operations in the Premises; provided, however,
Landlord may access areas within the Project through the Premises for the purpose of performing
routine repairs and maintenance required pursuant to this Section 8.1 so long as Landlord exercises
diligent good faith efforts to minimize interruption of Tenant’s business in the performance of
such repairs and maintenance.

8.2 Landlord’s Failure to Provide Maintenance. Except to the extent otherwise specifically
agreed upon in Exhibit E (and in the case of a conflict between this Article 8 and
Exhibit E, Exhibit E shall control), failure by Landlord to any extent to furnish
any maintenance service, or any cessation thereof, shall not be construed as an eviction of Tenant,
or work an abatement of rent, or relieve Tenant from fulfillment of any covenant or agreement
hereof, provided that if there is an interruption of maintenance service caused by Landlord’s
breach of this Lease or the negligence or willful misconduct of Landlord, rent shall thereafter be
credited back to Tenant for each day, or portion thereof, that the Premises, or any portion
thereof, are unusable for their normal purposes. Should any of the equipment or machinery utilized
in supplying the services described herein break down, or for any cause cease to function properly,
Landlord shall use reasonable diligence to repair same promptly, but Tenant shall have no right to
terminate this Lease, and shall have no claim for rebate or abatement of rent or damages, on
account of any interruption in service occasioned thereby or resulting therefrom except as provided
above and in Exhibit E. If, after notice by Tenant, Landlord fails to commence or refuses
to perform any maintenance, repairs, or replacements that it is required to perform under Section
8.1 or elsewhere in this Lease within a reasonable time specified by Tenant in its notice, Tenant
may declare an event of default and cure such default. Landlord shall reimburse Tenant within
thirty (30) days after Landlord receives Tenant’s invoice, failing which Tenant may deduct any
costs and expenses incurred by Tenant to cure such default from the Base Rent and or additional
rent due and to become due hereunder.

8.3 Tenant’s Maintenance. Tenant will keep and maintain the Premises (except to the extent
otherwise provided herein that such maintenance is Landlord’s obligation (e.g. Building standard
fire protection equipment)), in reasonably good condition and repair consistent with first class
office, broadcast and data center standards, normal wear and tear and casualty or other damage that
is not otherwise Tenant’s obligation under this Lease excepted. Tenant’s maintenance and repair
obligations may, at Tenant’s election, include security, janitorial and cleaning services and
supplies for the Premises, but shall not include the following, which shall be maintained by
Landlord: the Building fire alarm system, the Building fire protection system, the Building-wide
security system, power generation, and HVAC systems (including the chilled water piping and the
connection between chilled water piping and Tenant’s HVAC system). Except as otherwise expressly
agreed upon in Article 9 below, upon the permanent vacation by Tenant of the Premises, Tenant may,
at its option, remove all affixed appurtenances installed by or for the benefit of Tenant,
including but not limited to fixtures and broadcast communication and computer equipment installed
by Tenant, and shall surrender the Premises in the condition present at the Commencement Date,
excepting only normal wear and tear and casualty or other damage that is not otherwise Tenant’s
obligation under this Lease. Notwithstanding any other provisions of this Lease to the contrary,
Tenant shall not be required to remove the Premises flooring tiles, floor, interior or office build
out, internal stairways, or tenant improvements affixed to the Premises. Tenant shall, at its own
expense, replace any broken or damaged interior glass, windows, doors, locks, jambs and partition
walls, and such replacement items shall be of the same quality and design as those installed in the
Premises as of the Commencement Date. Notwithstanding the foregoing, Landlord shall be
responsible, at Landlord’s sole expense, for repairing all latent defects in the Premises (other
than those that are a part of the improvements installed by Tenant) during the Lease Term
(including any holdover period), even if Tenant had otherwise agreed in this Section 8.3 to
maintain the affected portion of the Premises.

8.4 Damage by Tenant. Neither Tenant nor any party for whom Tenant is responsible including,
but not limited to, its agents, employees, contractors, guests or invitees (each a “Tenant Party”)
shall cause or permit to occur, by act or omission, any injury, breakage or damage to the Premises
or to any other part of the Building or Property, including, without limitation, any damage to any
raised or tile flooring in the Premises (except to the extent such damage arises in connection with
work performed by or on behalf of Landlord or any Landlord Party) or the property thereunder
(hereinafter, “Property Damage”), or to any equipment, fixtures, personal property or improvements
located in the Building. Any such injury, breakage, or damage so caused shall, subject to the
provisions of Section 12.4(b) below if applicable, be repaired at the sole expense of Tenant,
except that Landlord shall have the right, at its option, after Tenant’s failure to commence to
cure and diligently pursue such cure to completion within ten (10) Business Days after notice to
Tenant of such injury, breakage or damage, to make such repairs and to charge Tenant for all
reasonable costs and expenses incurred in connection therewith. Should an emergency or similar
situation occur and delay would cause or is likely to cause preventable injury to persons or
property, Landlord may elect to act, at the sole expense of Tenant, upon prior notice to Tenant, to
repair or abate the emergency condition. Notwithstanding the above, the conditions caused by
customary bolting of racking to the floor shall not be deemed to constitute Property Damage.

8.5 Hazardous Materials.

(a) Tenant’s Covenants. Tenant shall not cause or permit any Hazardous Materials to be
generated, used, released, stored or disposed of in or about the Property, provided that Tenant may
use and store, in compliance with all Environmental Laws, reasonable quantities of materials as are
customarily maintained on site by office, data center/network operations center, broadcast, and
colocation tenants and as may be reasonably necessary, in Tenant’s discretion, for Tenant to
conduct normal operations in the Premises, taking into account the Permitted Uses, including,
without limitation, materials used in connection with the Heliport and storage areas and fueling
facilities related thereto in accordance with the Rooftop Easement Agreement. At the expiration or
earlier termination of this Lease, Tenant shall surrender the Premises to Landlord free of
Hazardous Materials generated, stored or disposed of by Tenant and free of any Environmental
Default (as defined below) by Tenant. For purposes of this Section 8.5:

	i.	 	“Hazardous Materials” means (A) asbestos and any asbestos containing material and any
substance that is then defined or listed in, or otherwise classified pursuant to, any
Environmental Law or any other applicable law as a “hazardous substance,” “hazardous
material,” “hazardous waste,” “infectious waste,” “toxic substance,” “toxic pollutant” or any
other formulation intended to define, list, or classify substances by reason of deleterious
properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity,
reproductive toxicity, or Toxicity Characteristic Leaching Procedure (TCLP) toxicity, (B) any
petroleum and drilling fluids, produced waters, and other wastes associated with the
exploration, development or production of crude oil, natural gas, or geothermal resources, and
(C) any petroleum product, polychlorinated biphenyls, urea formaldehyde, radon gas,
radioactive material (including any source, special nuclear, or by-product material), medical
waste, chlorofluorocarbon, lead or lead-based product, and any other substance whose presence
could be detrimental to the Building or the Project or hazardous to health or the environment;
and

ii. “Environmental Law” means any present and future law and any amendments (whether common
law, statute, rule, order, regulation or otherwise), permits and other requirements or guidelines
of governmental authorities applicable to the Building or the Land and relating to the environment
and environmental conditions or to any Hazardous Material (including, without limitation, CERCLA,
42 U.S.C. § 9601 et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et
seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq., the Federal Water
Pollution Control Act, 33 U.S.C. § 1251 et seq., the Clean Air Act, 42 U.S.C. § 7401 et seq., the
Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Safe Drinking Water Act, 42 U.S.C. §
300f et seq., the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., and any so-called
“Super Fund” or “Super Lien” law, any law requiring the filing of reports and notices relating to
hazardous substances, environmental laws administered by the Environmental Protection Agency, and
any similar state and local laws, all amendments thereto and all regulations, orders, decisions,
and decrees now or hereafter promulgated thereunder concerning the environment, industrial hygiene
or public health or safety).

(b) Hazardous Materials Indemnity. Notwithstanding any termination of this Lease, Tenant
shall indemnify and defend (with counsel acceptable to Landlord), protect and hold Landlord,
Landlord’s affiliates, Lenders (hereinafter defined), and the officers, directors, shareholders,
partners, employees, managers, independent contractors, attorneys and agents of the foregoing
harmless from and against any damage, injury, loss, liability, charge, demand or claim to the
extent based on or arising out of the presence or removal of, or failure to remove, Hazardous
Materials generated, used, released, spilled, stored or disposed of by Tenant or any Tenant Party
in or about the Property during the Term. In addition, Tenant shall give Landlord prompt written
notice of any actual or threatened Environmental Default of which Tenant has knowledge, which
Environmental Default Tenant shall cure in accordance with all Environmental Laws. An
“Environmental Default” means any violation of any Environmental Law by Tenant or any Tenant Party
during the Term including, without limitation, a release, spill, or discharge of a Hazardous
Material on or from the Premises, the Land or the Property.

(c) Landlord’s Warranty. Landlord and any Landlord Party shall not use, generate, store, or
dispose of Hazardous Materials on or about the Project except in a manner and quantity necessary
for the performance of Landlord’s business, and then only in compliance with all Environmental
Laws. Notwithstanding anything to the contrary contained herein, Landlord shall be responsible, at
its sole cost and expense, for the removal and/or disposal of any such Hazardous Materials brought
onto the Property by Landlord, including any expenses associated therewith. Notwithstanding
anything to the contrary contained herein and notwithstanding any termination of this Lease,
Landlord shall indemnify and hold Tenant, its employees and agents harmless from and against any
damage, injury, loss, liability, charge, demand or claim based on, or arising out of, (x) the
presence or removal of, or failure to remove, Hazardous Materials generated, used, released, stored
or disposed of at the Property or the Premises or (y) violation of Environmental Laws, each to the
extent not arising from an Environmental Default of any Tenant Party as provided in subsection (b)
above. In addition, Landlord shall give Tenant prompt written notice of any actual or threatened
violation of any Environmental Law that affects Tenant or Tenant’s use of the Premises and of which
Landlord has actual knowledge. Landlord shall cure in accordance with all Environmental Laws any
actual violation of any Environmental Laws except any such violation arising out of any
Environmental Default by any Tenant Party, for which Tenant shall remain responsible.

(d) Inspection. In addition to any environmental monitoring and insurance program of
Landlord, the cost of which is included in Operating Expenses, Landlord and the holders of any
mortgages, deeds of trust or ground leases on the Premises (each a “Lender” and collectively
“Lenders”) shall have the right to enter the Premises at any time Landlord reasonably deems an
Emergency (defined below) to exist, so long as the requirements for Emergency access set forth in
Section 11.1 below are followed, and otherwise at reasonable times in accordance with Article 11,
for the purpose of inspecting the condition of the Premises and for verifying compliance by Tenant
with this Lease and all Environmental Laws. As used in this Lease, “Emergency” shall mean a
condition in which there is an immediate and substantial likelihood of bodily injury or property
damage. Landlord shall be entitled to employ experts and/or consultants in connection therewith to
advise Landlord with respect to Tenant’s installation, operation, use, monitoring, maintenance, or
removal of any Hazardous Materials on or from the Premises. The cost and expenses of any such
inspections shall be paid by the party requesting same unless a violation of Environmental Laws by
Tenant or a Tenant Party exists or is imminent or the inspection is requested or ordered by a
governmental authority as a result of Tenant’s activities. In such case, Tenant shall within
thirty (30) days after Landlord’s request reimburse Landlord or Landlord’s Lender, as the case may
be, for the costs and expenses of such inspections.

ARTICLE 9.

ALTERATIONS

9.1 As-Is; Acceptance. Except as otherwise provided in this Lease, and based upon Tenant’s
current occupation of the Premises, and with the exception of latent defects, Tenant hereby
acknowledges and agrees that (A) the Premises are being leased to Tenant by Landlord in their “as
is, where is” condition as of the date of execution of this Lease, and (B) Landlord shall have no
obligation to make any alterations or improvements to or with respect to the Premises.

9.2 Approvals. Tenant shall be responsible for obtaining and maintaining during the Lease
Term all governmental approvals, consents, licenses, permits or certificates of use or occupancy
that shall or may be a condition of, required or necessary in connection with the use or occupancy
of the Premises by Tenant pursuant to this Lease, including any permits required in connection with
the equipment installed in the Premises by Tenant. Tenant shall promptly pay all fines, penalties
and damages that may arise out of or be imposed because of Tenant’s failure to comply with the
provisions of this Section 9.2.

9.3 Subsequent Alterations. Subject to the following sentence, Tenant shall not make or
permit anyone to make any alterations, additions or improvements (referred to herein collectively
as “improvements”) in or to the Premises without the prior written consent of Landlord (which
consent shall not be unreasonably withheld, conditioned or delayed). Notwithstanding anything to
the contrary contained in this Article 9, Landlord’s consent shall not be required with respect to
any proposed improvements that (i) do not affect the structure of the Building or the structural
components of the Premises, (ii) will not cause an interruption of, or reduction in, the
functioning of the mechanical, electrical, life safety, security, plumbing, HVAC,
telecommunications, or other systems in the Project or either Building, (iii) are not visible from
the exterior of the Premises, and (iv) comply in all respects with the Building Standards, provided
that Tenant shall provide Landlord in advance with a list of any contractors, subcontractors,
vendors or agents prior to such person(s) gaining access into the Building, and each such person(s)
shall be subject to Landlord’s approval and general and standard security protocols as are
uniformly enforced for the Project, and insurance requirements as are uniformly enforced for the
Project, prior to entry into the Building. Landlord shall have the right to prohibit any such
contractors, subcontractors, vendors or agents from performing work in the Building to the extent,
in Landlord’s reasonable opinion such contractors are not qualified to work in the Building and as
a result may negatively impact the Building’s or the other tenants’ operations in the Building.
Tenant shall furnish Landlord with advance written notification of any material improvement to the
Premises (each request for consent for improvements or each notice of material improvements to the
Premises is referred to as an “Improvement Notification”), which Improvement Notification shall
include sufficiently detailed plans and specifications as Landlord shall reasonably require. All
work under this Section 9.3 shall be scheduled with Landlord using the Rules and Regulations
(hereinafter defined).

Prior to performing any improvements where Landlord’s consent would be required, Tenant shall
obtain Landlord’s approval of all plans and specifications, and shall obtain the approval by
Landlord of the contractor or other persons who will perform the work (which approval, in each
case, shall not be unreasonably withheld, conditioned or delayed and which will be deemed given if
Landlord fails to respond within ten (10) days to Tenant’s request for consent). Tenant’s right to
perform any improvements shall be conditioned upon Tenant’s obtaining and delivering to Landlord
copies of all necessary permits and approvals for such work and Tenant’s obtaining and providing
Landlord with certificates of insurance evidencing specified insurance. All improvements performed
by or for Tenant must conform to all Legal Requirements. Landlord’s review and approval of any
plans and specifications or consent to the performance of work described therein (if such consent
is required hereunder) shall not be deemed an agreement by Landlord that such plans, specifications
and work conform with all applicable Legal Requirements and requirements of the insurers of the
Building (“Insurance Requirements”), shall not be deemed a waiver of Tenant’s obligations under
this Lease with respect to Legal Requirements and Insurance Requirements and shall not impose any
liability or obligation upon Landlord with respect to the completeness, design sufficiency or
compliance with Legal Requirements or Insurance Requirements of such plans, specifications and
work. Tenant agrees to permit Landlord to post notices of non-responsibility within the Premises.

Upon completion of any material improvements, Tenant shall provide Landlord with final release
of lien forms executed by all major contractors, subcontractors, laborers and materials suppliers.
If, notwithstanding the foregoing, any mechanic’s or materialmen’s lien is filed against the
Premises, the Building, the Project and/or the Land, for work claimed to have been done for, or
materials claimed to have been furnished to, the Premises on Tenant’s account, such lien shall be
discharged by Tenant within thirty (30) days after Tenant has notice thereof, at Tenant’s sole cost
and expense, by the payment thereof or by the filing of a surety bond in form legally sufficient to
discharge the lien. If Tenant shall fail to discharge any such mechanic’s or materialmen’s lien,
Landlord may, at its option, discharge such lien and treat the out-of-pocket cost thereof
(including reasonable attorneys’ fees incurred in connection therewith) as Additional Rent payable
with the next monthly installment of Base Rent falling due. It is understood and agreed that any
improvements to the Premises shall be conducted on behalf of Tenant and that Tenant shall be fully
responsible therefor. It is further agreed that if Landlord gives its written consent to the
making of any improvements to the Premises, such written consent shall not be deemed to be an
agreement or consent by Landlord to subject its interest in the Premises, the Building or the Land
to any mechanic’s, materialmen’s or other liens that may be filed in connection therewith. Upon
completion of any improvements by Tenant for which consent is required hereunder, Tenant shall
provide Landlord with as-built architectural plans showing the work including electrical, plumbing
and mechanical systems. Notwithstanding the foregoing, no improvements of any kind shall be made
that would (i) decrease the size of the Premises or any part thereof, (ii) materially diminish the
value of the Project, (iii) give or purport to give to any third party any easement or right of
way, or license to the Premises or Property except as otherwise described in Section 11.2 or
otherwise in this Lease, or (iv) interfere with the business operations of Landlord or another
tenant or occupant of the Building.

9.4 Waiver of Statutory Liens. Landlord waives, releases and relinquishes any statutory,
common law or constitutional pre-judgment liens it may have or at any time hereafter be entitled to
assert against the personal property, trade fixtures and telecommunications or other equipment that
Tenant installs, or is otherwise located, in the Premises.

9.5 Surrender. Improvements affixed to the Premises or the Building by Tenant and all movable
furniture, furnishings, trade fixtures and equipment installed in the Premises (including, without
limitation, wireless, microwave and satellite dishes, cabling, cages and racks and the contents
thereof, even if such cages and racks are bolted to floors and/or walls) may be removed by Tenant
during the Term, and (except for improvements affixed to the Premises or the Building at the
Commencement Date, or consented to by Landlord during the Lease Term without the requirement of
removal upon surrender of the Premises) shall be removed upon expiration or earlier termination of
the Term by Tenant or, at Tenant’s option, by Landlord at Tenant’s cost, not to exceed One Hundred
Fifty Thousand Dollars ($150,000) multiplied by the percentage increase between the CPI on the
Commencement Date and the CPI on the day of the removal, on a cumulative, annually compounding
basis . Any damage or injury to the Premises or the Building caused by such removal shall be
repaired by Tenant, at Tenant’s sole expense. If any property or improvement of Tenant is not
removed by Tenant as of the date Tenant vacates the Premises, the same shall become the property of
Landlord and shall, at Landlord’s election, be surrendered with the Premises as a part thereof, or
such improvements and/or property may be immediately removed by Landlord from the Premises and may
be disposed of, sold, or used, or stored, as determined by Landlord.

ARTICLE 10.

SIGNS

10.1 Naming Rights. For so long as Tenant continues to lease at least 58,745 square feet of
the Premises (the “Minimum Square Footage”), at the election of Tenant, the name of the Project
shall continue to be Fisher Plaza, and the names of the Buildings shall continue to be Fisher Plaza
East and Fisher Plaza West. If (i) Tenant ceases to lease the Minimum Square Footage, or (ii) the
Term of this Lease expires or is otherwise terminated, then Landlord shall have the right to change
the name of the Project and the Buildings to a name determined by Landlord in Landlord’s sole
discretion, and Landlord shall cease using and shall remove, at Landlord’s sole cost and expense,
all Project signage (outside of the Premises) referencing “Fisher” or any other names referring to
Tenant or Tenant’s Affiliates that are then being used to reference the Buildings or the Project.

If Tenant elects in its sole discretion, during the Lease Term, to change the name of the
Project and/or the names of the Buildings, or if Tenant no longer desires to have the right to name
the Buildings and/or the Project, then Tenant shall give Landlord written notice either of Tenant’s
desired new name of the Project and/or the Buildings (subject to Landlord’s approval, which shall
be granted unless the name is not appropriate for a first class office building), or of the fact
that Landlord shall re-name the Project and the Buildings to a name of Landlord’s choice. If the
name of the Project or the Buildings is being changed at Tenant’s election to a name selected by
Tenant (and approved by Landlord) pursuant to the preceding sentence, Landlord and Tenant shall
reasonably cooperate to agree on new Project signage, including the design, form and content of
such new signage, and Landlord shall install the new signage at the cost and expense of Tenant. If
(upon Tenant’s specific prior written notice) Landlord changes the name of the Project at a time
when Tenant is still in possession of the Premises under this Lease, to a name selected by
Landlord, then Landlord shall, at its expense, remove and replace only such signage as is general
to the Project and the Buildings, but shall not alter or disturb any signage that is specific to
any portion of the Premises, to Tenant’s operation, or to Tenant’s personal property. Tenant
grants to Landlord a non-exclusive license during the Term and all Extended Terms to use the name
“Fisher Plaza” solely in connection with the promotion and marketing of the Project, which license
may be revoked by Tenant in its discretion upon written notice to Landlord at any time when the
name of the Project is no longer “Fisher Plaza.”

10.2 Signage. Except with respect to all existing signs on or about the Project, the Common
Areas, or in either of the Buildings, no sign (including any directory board), advertisement or
notice referring to Tenant or any entity that is affiliated with Tenant (including a transferee of
Tenant), shall be inscribed, painted, affixed or otherwise displayed on any part of the exterior or
the Common Areas of the Buildings without the prior written approval of Landlord and Tenant;
provided, however, Landlord may continue to place general signs, advertisements, or notices of
general interest to all Project tenants in the Common Areas in a manner consistent with the way in
which such general signs, advertisements and notices are placed in the Common Areas of the Project
as of the Commencement Date. Landlord shall not affix, install and display any additional signs,
advertisements or notices on any part of the exterior or interior of the Buildings, without
Tenant’s prior written consent, except that interior directory and suite identification signage,
directional signage or ADA signage, in all cases comparable with other first-class office projects
in Seattle, shall not require Tenant’s consent. Landlord shall not use, permit the use of, or
otherwise employ the trade style, trademarks and/or trade names of Tenant, or any entity associated
with Tenant, in Landlord’s advertising or other promotional or marketing materials for the Project,
including listing of Tenant’s Premises and the furnishing of maps and other informational
materials, without Tenant’s prior written approval of any such use, which approval may be withheld
in Tenant’s sole discretion. Notwithstanding the foregoing, Landlord shall have the right to
install exterior signage for retail tenants at the Project consistent in quality, size and lighting
with the existing retail tenant signage as of the date hereof.

ARTICLE 11.

ACCESS

11.1 Access. Tenant shall have at all times during the Lease Term twenty four (24) hours a
day, seven (7) days a week, 365 days a year), reasonable access to the Common Areas, including,
without limitation, elevators and rooftop, and full and exclusive access to the Premises, which
includes from the top of the floor slab below the Premises to the bottom of the floor slab for the
units above the Premises without obtaining Landlord’s consent; and non-exclusive use of the area
below the Premises’ Floor slab and the ceiling of the units below the Premises (the “Subfloor
Area”) with Landlord’s advance consent, which will not be unreasonably withheld, conditioned or
delayed. Tenant’s non-exclusive use of the Subfloor Area will include, but not be limited to, the
purposes of construction and installation of Tenant’s alterations and improvements, and for
maintenance, repair and replacement of improvements, equipment, and cabling and other property of
Tenant. Landlord reserves the right to, and Tenant agrees to permit Landlord or its agents or
representatives to, enter the Premises, without charge therefor to Landlord and without diminution
of the rent payable by Tenant, (i) to examine, inspect and protect the Premises and the Building,
(ii) to make such alterations and/or repairs as in Landlord’s reasonable judgment may be required
by law or be necessary to maintain the Project in good condition and repair in accordance with
Article 8 hereof, (iii) with respect to the Terminated Space during the nine (9) month period prior
to the Reduction Date and with respect to the Premises after Tenant has failed to exercise its
right to renew this Lease for the next Extended Term, to conduct tours and otherwise market such
space after providing reasonable prior notice to Tenant, and (iv) to otherwise comply with and
carry out Landlord’s obligations under this Lease; provided, however, except when Landlord
reasonably deems an Emergency exists, (w) Tenant may establish reasonable time of day restrictions
on Landlord and/or third party entry to the Premises to avoid disruption of Tenant’s broadcast
operations, (x) Landlord shall not be entitled to access any portion of the Premises in a manner
that unreasonably interferes with Tenant’s use of the Premises in accordance with the Permitted
Uses, (y) any Landlord entry shall be subject to Tenant’s right to refuse access to any such agent
or representative of Landlord (other than those that have been pre-approved for access) if, in
Tenant’s reasonable opinion, such persons will compromise the confidentiality and/or security of
the Premises and/or Tenant’s business operations, and (z) Tenant may require visitors who are not
agents or contractors of Landlord to enter into a non-disclosure agreement satisfactory to Tenant
prior to any entry to the Premises. In connection with any such entry, Landlord shall (A) minimize
the disruption to Tenant’s use of the Premises, (B) give Tenant reasonable advance written and
email (if possible) notice of such entry, which shall not be less than one (1) Business Day advance
notice (except when Landlord reasonably deems an Emergency exists, in which case, no notice is
required), and (C) endeavor to conduct such entry only during normal working hours (except when
Landlord reasonably deems an Emergency exists). Tenant may at Tenant’s cost, at its option,
require that Landlord be accompanied by a representative of Tenant during any such entry (except in
circumstances where Landlord reasonably deems an Emergency exists). Tenant will provide Landlord
with an Emergency contact person and phone number, which Landlord shall attempt to contact even in
circumstances where Landlord reasonably deems an Emergency exists, to the extent practical. If
Landlord reasonably deems an Emergency exists, then Landlord will notify the Tenant contact at the
Emergency telephone contact number provided herein and will not enter the Premises unless
accompanied by a Tenant representative and otherwise in compliance with the provisions of this
Section 11.1, unless (1) Tenant fails to answer the telephone, or (2) Tenant waives such escort, or
(3) waiting for a Tenant escort is unreasonable given the nature of the Emergency. If Landlord
enters the Premises in case of an Emergency without prior notice to Tenant as provided in this
Lease, Landlord shall promptly, after such entry, notify Tenant of such entry and the events giving
rise to such entry.

11.2 Easements. Landlord reserves the right to grant easements, rights, and dedications that
Landlord deems necessary or desirable for the benefit of the Property, and to record personal maps
and restrictions in connection therewith; provided, however, Landlord shall not enter into any such
agreement or grant any such rights that would interfere with Tenant’s rights, use or occupancy of
the Premises in accordance with the Permitted Uses or the rooftops of the Buildings in accordance
with the Rooftop Easement Agreement attached hereto as Exhibit J.

11.3 Connectivity. Landlord shall, at no additional cost to or restrictions on Tenant, allow
Tenant and its telecommunications services providers (“Carriers”) to access the Building, so long
as such Carrier(s) have entered into a separate agreement with the Landlord and pay any fees
required by such agreement, for purposes of installing, testing, monitoring and maintaining network
connectivity to the Premises; and provided further that the costs and restrictions imposed on
Carriers are reasonable and consistent with those imposed throughout the Project. Such activities
may include, but are not limited to:

(a) Allowing Tenant and its Carriers access to the shared point for fiber entry into the
Building, including such areas as the vault, demarc room(s) and/or the “Meet Me Room” (or “MMR”);

(b) Allowing each of Tenant’s Carriers to install a fiber distribution panel within the Meet
Me Room for purposes of providing connectivity to the Premises;

(c) Granting Tenant’s Carriers access to and use of existing cable distribution facilities
between the Carrier’s point of entry, the Carrier’s premises and the Meet Me Room;

(d) Allowing Tenant and its Carriers, subject to Tenant’s payment of Landlord’s standard fees
consistent with those imposed for the Project (the “Meet Me Room Fees”), which fees are currently
$150.00 per month per fiber panel and $125.00 per month per T-1 panel located in the MMR, to
install equipment within the Meet Me Room for purposes of providing, receiving and monitoring
network connectivity to the Premises, and to access such equipment for purposes of testing,
monitoring and maintaining such equipment, provided that the Meet Me Room Fees assessed to Tenant
will only relate to Tenant’s (and not the Carriers) installation of equipment in the Meet Me Room;
and

(e) From and after the date of this Lease, Tenant shall comply in all respect with the Cabling
Specifications attached as Exhibit G hereto in all of Tenant’s cabling to be installed
within the Premises, connections to the Meet Me Room and within the Meet Me Room, as the same may
be reasonably modified from time to time by Landlord provided that such modified specifications are
equally applicable and applied to all tenants and occupants of the Project.

ARTICLE 12.

INSURANCE

12.1 Increases Due to Tenant. If any increase in the rate of fire insurance or other
insurance is stated by any insurance company or by the applicable Insurance Rating Bureau to be due
to the extent relating directly to any activity of Tenant in the Project that is unique to Tenant,
or the placing of any equipment, property or other materials by Tenant in or about the Premises or
the Project (except to the extent such equipment, property or materials are necessary for or
related to Tenant’s Permitted Use of the Premises or the Buildings’ rooftops) such statement (each
an “Insurance Increase Statement”) shall be evidence that the increase in such rate is due to such
activity or equipment and, as a result thereof, Tenant shall be liable for the amount of any
increase caused by Tenant. Tenant shall reimburse Landlord for such amount within thirty (30) days
following written demand from Landlord (accompanied by reasonable backup documentation). In the
absence of an Insurance Increase Statement, any increases in insurance rates applicable to the
Building shall be included as an insurance cost in Operating Expenses.

12.2 Landlord’s Insurance. Throughout the Lease Term, Landlord shall insure, but shall not
self-insure, the Building and all equipment and fixtures installed therein by Landlord against loss
due to fire and other casualties included in all-risks property insurance with comprehensive
electrical and mechanical breakdown coverage insurance policies, in an amount equal to the full
replacement cost thereof, exclusive of architectural and engineering fees, excavation, footings and
foundations, together with any other coverages reasonably deemed appropriate by Landlord or
Landlord’s lender. Tenant assumes the risk of loss to its improvements, furnishings, trade
fixtures, equipment and supplies, which shall not be insured under the above policy and for which
Landlord shall not be responsible. Landlord shall obtain and maintain Commercial General Liability
and Umbrella Liability insurance, covering the Common Areas of the Premises, with an insurance
company with an A.M. Best rating of “A-VII” or better, licensed to do business in the location of
the Premises, and covering all operations by or on the behalf of the Landlord on an occurrence
basis against claims for bodily injury, personal injury, advertising injury and property damage.
Such insurance shall have the following minimum limits:

	 	 	 
	$2,000,000

$2,000,000

$1,000,000

$1,000,000

$500,000

$25,000
	 	General Aggregate

Products/Completed Operations Aggregate

Personal and Advertising Injury Limit Each

Occurrence Limit

Fire Damage, Per Fire

Medical Expense, Per Person

Certificates or endorsements evidencing such insurance shall be delivered by Landlord within
thirty (30) days after the Commencement Date and upon Tenant’s written request, at each policy
renewal thereafter, which certificates shall demonstrate the above required insurance limits and
coverages.

12.3 Tenant’s Insurance.

12.3.1 Insurance Requirements. Throughout the Lease Term, Tenant shall insure all
tenant improvements, furnishings, trade fixtures, and equipment installed in the Premises
by Tenant, and any other personal property of Tenant therein (and excluding all equipment
installed by Landlord), against loss due to fire and other casualties included in
all-risks property insurance with comprehensive electrical and mechanical breakdown
coverage insurance policies in an amount equal to the full replacement cost thereof or
such other amount as Tenant deems commercially reasonable. Tenant shall obtain and
maintain Commercial General Liability and Umbrella Liability insurance with an insurance
company with A.M. Best rating of “A-VII” or better, licensed to do business in the
location of the Premises, and covering all operations by or on behalf of Tenant on an
occurrence basis against claims for bodily injury, personal injury, advertising injury and
property damage. Such insurance shall have the following minimum limits:

	 	 	 
	$2,000,000

$2,000,000

$1,000,000

$1,000,000

$500,000

$25,000
	 	General Aggregate

Products/Completed Operations Aggregate

Personal and Advertising Injury Limit Each Occurrence

Occurrence Limit

Fire Damage, Per Fire

Medical Expense, Per Person

With respect to the Personal and Advertising Injury, equivalent coverage under other types
of insurance, for example, Media Professional Liability insurance, is acceptable. Tenant
shall name Landlord as an additional insured under its Commercial General Liability
insurance policy, with regards to the operation of the Premises. Certificates or
endorsements evidencing such insurance shall be delivered by Tenant within thirty (30) days
after the Commencement Date and upon Landlord’s written request, at each policy renewal
thereafter, which certificates shall demonstrate the above required insurance limits and
coverages.

12.3.2 Self Insurance Option. So long as Tenant’s net worth is at least One Hundred
Million Dollars ($100,000,000.00), Tenant shall have the right and option to self-insure
(in whole or in part) against the risks described in Section 12.3.1 above, provided,
Tenant’s self insurance program (in Landlord’s reasonable discretion) provides at least
the same coverage and benefits to Landlord as the insurance described in Section 12.3.1
above. Within thirty (30) days of notice of any request, Tenant shall provide Landlord
such reasonable information as Landlord may reasonably request from time respecting
Tenant’s self insurance program. In no event shall this Section 12.3.2, or Landlord’s
agreement respecting self insurance hereunder, apply to or inure to the benefit of any
subtenant or non Affiliate assignee of Tenant. If Tenant elects to terminate its program
of self insurance for any reason, Tenant shall promptly notify Landlord, which notice
shall be accompanied by a third party certificate of insurance in compliance with the
terms of Section 12.3.1.

12.4 (a) Tenant’s Release & Waiver of Subrogation. Notwithstanding any provisions of this
Lease to the contrary, Tenant hereby waives its right of recovery against Landlord and any
Landlord’s lender and releases Landlord and any Landlord’s lender from any claim for which Landlord
or such lender may otherwise be liable arising out of losses, claims, casualties or other damages
to the extent either (i) the type of loss, claim, casualty or other damage is covered under
property insurance coverage Tenant is required to maintain pursuant to this Article 12 (or would
have been covered had such insurance been maintained if Tenant fails to maintain such insurance or
elects to self insure pursuant to Section 12.3.2 above) or (ii) Tenant receives insurance proceeds
from its property insurance on account of any such losses, claims, casualties or other damages (or
would have received had such insurance been maintained if Tenant fails to maintain such insurance
or elects to self insure pursuant to Section 12.3.2 above). Each policy of property insurance
obtained by Tenant pursuant to the provisions of this Article 12 shall include a waiver of the
insurer’s right of subrogation against Landlord, and shall contain an endorsement to the effect
that any loss payable under such policy shall be payable notwithstanding any act, omission or
negligence of Landlord, or any party for whom Landlord is responsible including, but not limited
to, its agents, employees, contractors, guests or invitees (“Landlord Party”), which might, absent
such agreement, result in the forfeiture of payment for such loss.

(b) Landlord’s Release & Waiver of Subrogation. Notwithstanding any provisions of this Lease
to the contrary, Landlord hereby waives its right of recovery against Tenant and releases Tenant
from any claim for which Tenant may otherwise be liable arising out of losses, claims, casualties
or other damages to the extent either (i) the type of loss, claim, casualty or other damage is
covered under insurance coverage Landlord is required to maintain pursuant to this Article 12 or
(ii) Landlord receives insurance proceeds on account of any such losses, claims, casualties or
other damages. Each policy of property insurance obtained by Landlord with respect to the Building
or Project shall include a waiver of the insurer’s right of subrogation against Tenant, and shall
contain an endorsement to the effect that any loss payable under such policy shall be payable
notwithstanding any act, omission or negligence of Tenant, or any Tenant Party, which might, absent
such agreement, result in the forfeiture of payment for such loss.

ARTICLE 13.

SERVICES AND UTILITIES

13.1 Landlord Control. All of the following provisions of this Section 13.1 are subject to
the provisions of Article 11 and Exhibit E. To the extent there is a conflict between the
provisions of this Section 13.1 or Article 11 and Exhibit E, Exhibit E shall
control. The Project, excluding the Premises, is at all times subject to the exclusive control,
management and operation of Landlord. Landlord has the right with respect to such control,
management and operation to:

i. obstruct or close off all or any part of the Project for the purpose of maintenance, repair
or construction, provided that Tenant’s use of or access to the Premises is not materially impaired
thereby;

ii. employ all personnel reasonably necessary for the operation and management of the
Building, either directly or through a third party property management or operating company with
significant experience managing a project similar to the Project and consistent with the
requirements set forth in Exhibit E;

iii. construct other improvements and make alterations, additions, subtractions or
re-arrangements, construct facilities adjoining or proximate to the Building, including underground
tunnels and pedestrian walkways and overpasses, provided that (A) Tenant’s use of, and normal
operations in or access to, the Premises or the Project is not materially impaired thereby and/or
(B) such acts of Landlord should not reasonably be expected to damage any equipment or other
personal property of Tenant located in the Premises or the Project;

iv. do and perform such other acts in and to the Building and, in connection with performing
any maintenance or repair obligations of Landlord, in and to the Premises and to have access
thereto, as, in the use of reasonable business judgment, Landlord determines to be advisable for
the more efficient and proper operation of the Building and Premises, provided that (A) Tenant’s
use of, normal operations in or access to, the Premises in accordance with the Permitted Uses is
not materially impaired thereby and/or (B) such acts of Landlord do no damage to any wiring,
cabling, equipment or other personal property of Tenant located in the Premises; and

v. reasonably control, supervise and regulate the parking areas in such manner as the Landlord
determines from time to time in a manner consistent with the management and operation of similar
security-intensive assets within the Puget Sound market;

vi. to the extent that Landlord reasonably believes that electrical service to the Premises or
the Project is in imminent danger of suffering a material negative impact (a “Power Deficiency”),
Landlord may enter the Premises upon not less than twenty-four (24) hours’ advance written notice
(except, in circumstances where Landlord reasonably deems an Emergency exists, such notice may be
telephonic pursuant to Section 11.1 above) to perform such work required to remedy the cause of
such imminent Power Deficiency, provided Landlord shall (a) use diligent efforts to perform such
work as expeditiously as is reasonably practicable under the circumstances and (b) notify Tenant
immediately after completion of such work; and

vii. interrupt any other Building services benefiting the Premises (excluding the interruption
of power to the Premises and the Building which shall be governed by subsection (vi) above and by
Exhibit E in connection with Landlord’s regularly-scheduled maintenance of Building
systems), provided (a) Landlord exercises diligent efforts to minimize interference with the
conduct of Tenant’s business operations in the Premises, (b) Landlord provides Tenant no less than
twenty-four (24) hours’ advance written notice of any such maintenance interruptions (except, in
circumstances where Landlord reasonably deems an Emergency exists, such notice may be telephonic
pursuant to Section 11.1 above), and (c) Landlord notifies Tenant immediately after completion of
such work.

13.2 Landlord Obligations. In addition to Landlord’s other obligations in this Lease, during
the Lease Term, the Landlord shall provide, or cause to be provided to the Premises, the following
services and utilities in at least the amounts serving the Premises as of the Commencement Date,
upon the terms and subject to the conditions set out in this Article 13 and in Exhibit E:

i. Chilled water for heating, ventilation and air conditioning (“HVAC”) for the Premises shall
be provided at all times to the standards described in Exhibit E;

ii. water and fuel in sufficient amounts as installed in the Building and Premises;

iii. the critical load power specified in Exhibit E (“Critical Load Power”) available
at all times at the Premises and all other power appropriate to operate the supporting HVAC, CRAC,
lighting, and other mechanical and electrical systems affecting the Premises. Notwithstanding
anything to the contrary set forth in this Lease or Exhibit E, Landlord covenants that as
of the Commencement Date the primary power and redundant power stated in Section 4.7 will be
available to supply electrical service to the Premises;

iv. connectivity (at Tenant’s cost and expense subject to the provisions of Section 11.3) to
one or more cable or fiber providers shall be provided from the Premises to carrier access points
serving the Building; provided, however, that Tenant may, pursuant to Section 11.3, utilize one or
more approved Carriers for the connection of new cable or fiber lines to the Building at Tenant’s
cost and expense;

v. security for the Building in accordance with Landlord’s standard security procedures and
the specifications set forth in Exhibit E (if there is a conflict between the Landlord’s
standard security procedures and the specification set forth in Exhibit E, the
specifications set forth in Exhibit E shall control);

vi. loading dock facilities within the Project accessible from the Premises twenty four 24
hours a day, seven (7) days a week;

vii. monitoring of the facilities and services of the Building twenty-four (24) hours a day,
seven (7) days a week to (A) detect interruptions in performance and in any continuous provision of
services in accordance with the standards, and in the amounts, specified in this Lease, (B) receive
notices of service interruptions twenty-four (24) hours a day, seven (7) days a week, and (C)
provide prompt notice to Tenant of any interruptions or reductions of power required to be provided
by Landlord hereunder and/or any reductions in levels of redundancy. “Critical Services” means the
provision of continuous electrical power, chilled water for HVAC and monitoring services in
accordance with the standards, and in the amounts, specified herein; and

viii. subject to Landlord’s Rules and Regulations (attached hereto as Exhibit D) and
such reasonable amendments to such Rules and Regulations that do not conflict with the terms of
this Lease, (A) to the extent that Tenant or any Tenant representative is not at the Premises to
receive any equipment or property delivered to the Property for Tenant’s receipt or benefit (each
such item of delivered property, a “Tenant Delivery”) delivered Monday through Friday, between the
hours of 8:00 a.m. and 5:00 p.m., Landlord shall receive and hold the Tenant Delivery on behalf of
Tenant in accordance with Landlord’s standard procedures, provided that Landlord shall have no
obligation to receive and/or hold any Tenant Delivery delivered on Saturday or Sunday and/or
outside the hours of 8:00 a.m. and 5:00 p.m., (B) Landlord shall not be required to receive and/or
hold any oversized item, (C) Landlord shall allow Tenant the reasonable use of available equipment
necessary to receive and transport such items, and (D) Landlord shall have no liability for the
theft, damage or disappearance of any Tenant Delivery except to the extent of Landlord’s gross
negligence or willful misconduct.

13.3 Distribution of Power.

(a) Tenant shall be solely responsible for the distribution of electrical power from the
Tenant’s taps on the risers located in the Building’s electrical room located on the Building’s
third and fifth floors to the Premises and for the installation and related maintenance of
equipment and systems required in connection with such distribution. Tenant shall, in no event,
whether by the installation or placement of equipment or improvements or otherwise, interfere with
Landlord’s delivery of electrical power to the taps on the risers. Any service or utility that is
separately metered or submetered to the Premises shall be billed directly to Tenant (without any
mark-up by Landlord) and paid monthly to Landlord. Payments to Landlord for power shall be made
within thirty (30) days of Tenant’s receipt of an invoice therefor. All other services or
utilities that are required to be provided by Landlord under Section 13.2 that are not separately
metered or submetered shall be included in Operating Expenses and shall be paid by Tenant each
month as provided in Article 4, provided, however, that to the extent certain of the utilities and
services are utilized more heavily by the retail and restaurant tenants of the Project (e.g.,
trash, gas), Landlord agrees to equitably apportion such utilities and services so that Tenant is
not paying an inequitable portion for such utilities and services.

(b) The Critical Load Power supplied to the Premises, as well as the power to operate all heat
rejections systems related to Tenant’s operations (including CRACs or other HVAC), shall be
separately metered or submetered at Tenant’s expense.

13.4 Additional Power. If Tenant requests utilities in excess of the quantities supplied by
Landlord pursuant to Section 13.2 above and if excess quantities that could be delivered to Tenant
are available to Landlord, Landlord will make the excess quantities available, subject to the
following conditions:

(a) Tenant shall have provided Landlord with a written request for a specified increase in the
maximum load Limit at least three (3) months prior to the date Tenant requires such increase;

(b) The cost of supplying such additional facilities or excess utilities shall be disclosed to
Tenant prior to Landlord providing same, and, to the extent Tenant requests such additional
facilities or excess services and Landlord provides same to Tenant, the specific costs reflecting
the quantity of Tenant’s request shall be paid by Tenant to Landlord within thirty (30) days after
Landlord’s demand therefor; and

(c) If Landlord requires additional time to increase the maximum load limit due to events
outside Landlord’s control, which shall not exceed sixty (60) days, Landlord shall provide Tenant
notice and adjust the schedule accordingly. The provisions of this Section 13.4(c) are in lieu of
and not in addition to any Force Majeure event, and Force Majeure shall never apply to extend the
time set forth in this Section 13.4(c).

13.5 Disclosure. Notwithstanding anything to the contrary contained herein:

Tenant shall not be required to submit information about its equipment (including power
requirements, engineering plans, weight of equipment and improvements or any other specifications)
prior to installation except as provided in Section 13.6. Tenant shall ensure proper regulatory
compliance (UL) of its equipment and shall stay within the power utilization specifications set
forth in this Lease or as otherwise agreed in writing by the parties.

13.6 Maximum Load. Except to the extent approved in advance by Landlord in writing and
subject to the other provisions of this Lease, Tenant will not (a) utilize more power than that
specified in Sections 4.7 and 13.2 unless excess power is provided as described in Section 13.4,
(b) install any equipment that will exceed or overload the capacity of any utility, electrical,
HVAC, floor loading or mechanical facilities in the Premises or Building, or (c) bring into the
Premises or install any utility, electrical, HVAC, or mechanical facility that Landlord does not
approve in advance, such approval not to be unreasonably withheld, conditioned, or delayed.

13.7 Tenant Damage. If any damage is caused to the Building or the Premises by overloading by
Tenant (loads in excess of the design for the Critical Load Power and the specifications contained
in this Lease, including exhibits), Tenant will forthwith repair such damage, or, at the option of
Landlord, pay Landlord within thirty (30) days after demand, the cost of repairing such damage.

13.8 Interruptions. Except as expressly set forth in this Lease, neither Landlord nor Tenant
will take any action that would interrupt the Critical Services without the prior written consent
of the other party, which consent may be granted or withheld in such party’s sole and absolute
discretion. Landlord will use diligent efforts not to interfere with or interrupt Tenant’s
operations within the Premises and will take prompt action to remedy any circumstances when
Tenant’s Critical Services are interfered with or interrupted pursuant to the timetable set forth
in Exhibit E (except to the extent such interruption is expressly permitted by this Lease);
provided that Landlord shall be permitted to perform scheduled maintenance upon reasonable advance
notice to Tenant in accordance with Section 13.1 and Exhibit E. In the event of any
interruption of Critical Services other than pursuant to scheduled maintenance, Tenant shall
promptly notify Landlord; such notice shall state with reasonable detail the nature of the
interruption in question. Landlord shall respond to all such notices as provided for in
Exhibit E.

13.9 Failure. Except to the extent otherwise agreed upon in this Lease or Exhibit E,
failure by Landlord to any extent to furnish any service, or any cessation thereof, shall not be
construed as an eviction of Tenant, or work an abatement of rent, or relieve Tenant from
fulfillment of any covenant or agreement hereof, provided that if there is an interruption of
service caused by the negligence or willful misconduct of Landlord that continues for twenty four
(24) hours or more and materially interferes with Tenant’s use of the Premises, then in addition to
the other remedies afforded Tenant herein, rent shall thereafter be credited back to Tenant to the
extent the Premises are unusable for the Permitted Uses. Except to the extent otherwise agreed
upon in this Lease or Exhibit E, should any of the equipment or machinery utilized in
supplying the services described herein break down, or for any cause cease to function properly,
Landlord shall use reasonable diligence to repair same promptly, but Tenant shall have no right to
terminate this Lease, and shall have no claim for rebate or abatement of rent or damages, on
account of any interruption in service occasioned thereby or resulting therefrom except as provided
above.

ARTICLE 14.

LIABILITY OF LANDLORD

14.1 Liability Exclusions. Except as expressly provided to the contrary in this Lease,
Landlord shall not be liable to Tenant or its employees, agents, business invitees, licensees,
customers, clients, family members or guests (the “Tenant Parties”) for any damage, injury, loss,
compensation or claim, including, but not limited to, claims for the interruption of or loss to
Tenant’s business, based on, arising out of or resulting from (i) repairs to any portion of the
Premises or the Building; (ii) any accident or damage resulting from the use or operation (by
Landlord, Tenant or any other person or persons) of the heating, cooling, electrical or plumbing
equipment or apparatus; (iii) the termination of this Lease by reason of the destruction of the
Premises or the Building; or (iv) any fire, robbery, theft, mysterious disappearance and/or any
other casualty; provided, however, that Landlord shall not be released pursuant to this Section
14.1 from any liability (A) to the extent resulting from Landlord’s breach of, or default as to,
any of its covenants, warranties or other obligations under this Lease, or (B) to the extent
resulting from Landlord’s negligence or willful misconduct or the negligence or willful misconduct
of any Landlord Party. Notwithstanding anything in the immediately preceding sentence or this
Lease, and subject to the remedies provided in Exhibit E, in no event shall Landlord have
any liability to Tenant for any claims based upon lost profit, damage to or loss of business or any
form of special, indirect or consequential damage.

14.2 Indemnification.

(a) Tenant’s Indemnity. From and after the Commencement Date, and subject to the other
provisions of this Lease, Tenant hereby agrees to indemnify and hold Landlord and the Landlord
Parties harmless from and against all costs, damages, claims, liabilities (including reasonable
attorneys’ fees and any costs of litigation) suffered by or claimed against Landlord or any
Landlord Party, directly or indirectly, to the extent based on, arising out of or resulting from
(i) Tenant’s use and occupancy of the Premises during the Lease Term, including, without
limitation, any event relating to the installation or other placement of improvements or equipment
therein by Tenant or any Tenant Party, the operation or placement of the equipment in the Premises
by Tenant or any Tenant Party, or the business conducted by Tenant therein, including Tenant’s
actions with respect to the structured cabling described in Article 5 hereof, but excluding such
matters related to equipment installed in the Premises by Landlord, (ii) any Property Damage by
Tenant or any Tenant Party or any default by Tenant with respect to any Tenant Delivery during the
Lease Term, (iii) damage to the improvements, conduits, or fiber or systems of any other tenant or
occupant in the Building or any accident, injury or damage whatsoever caused to any person, or to
the property of any person, occurring within the Premises or otherwise caused by Tenant or caused
by any Tenant Party during the Lease Term, (iv) any negligent, tortious or wrongful act or omission
to act by Tenant or any Tenant Party during the Lease Term, or (v) any breach or default by Tenant
in the performance or observance of its covenants or obligations under this Lease; provided that
Tenant’s obligations to indemnify and hold Landlord harmless pursuant to this Section 14.2 shall
not include any costs, damages, claims, liabilities, or Operating Expenses suffered by or claimed
against Landlord to the extent based on, arising out of, or resulting from any negligence, tortious
or willful misconduct of Landlord or any Landlord Party or any default by Landlord in the
performance of its obligations under this Lease or its contractual obligations to the person or
entity making the claim. Notwithstanding any other provision of this Lease, in no event shall
Tenant have any liability to Landlord for any claims based upon lost profit, damage to or loss of
business or any form of special, indirect or consequential damage except pursuant to Article 21
hereof.

(b) Landlord’s Indemnity. Landlord hereby agrees to indemnify and hold Tenant and the Tenant
Parties harmless from and against all costs, damages, claims, and liabilities (including reasonable
attorneys’ fees and any reasonable costs of litigation) suffered by or claimed against Tenant or
any Tenant Party, directly or indirectly, based on, arising out of, or resulting from (i) the
installation, operation or placement of improvements or equipment in the Premises or Project by
Landlord or a Landlord Party, (ii) the negligence of or any wrongful act or tortious or wrongful
omission to act by Landlord or any Landlord Party, or (iii) any breach or default by Landlord in
the performance or observance of its covenants or obligations under this Lease.

14.3 Landlord Transfers. Except as expressly provided in this Lease, if Landlord sells or
transfers the Building or the Project, provided the purchaser or transferee expressly assumes in
writing the obligations of Landlord hereunder, the Landlord named herein shall not be liable to
Tenant for any obligations or liabilities based on or arising out of events or conditions occurring
on or after the date of such sale or transfer. Furthermore, upon such assumption, Tenant agrees to
attorn to any such purchaser or transferee upon all the terms and conditions of this Lease.

14.4 Limitation of Liability. None of the direct or indirect members, managers,
partners, shareholders, directors or officers of Landlord or Tenant (collectively, the “Ownership
Parties”) shall be personally liable for the performance of Landlord’s or Tenant’s obligations
under this Lease. Tenant and Landlord shall look solely to the other party to enforce their
respective obligations hereunder and shall not seek any damages against any of the Ownership
Parties because of any breach of Landlord’s or Tenant’s obligations hereunder. Landlord’s
liability under this Lease shall be limited to the assets owned by Landlord that relate to or are
derived from the Property, and Tenant shall not look to any other unrelated property or assets of
Landlord or the property or assets of any of the Ownership Parties in seeking either to enforce
Landlord’s obligations under this Lease or to satisfy a judgment against Landlord.

ARTICLE 15.

RULES AND REGULATIONS

Tenant agrees to comply with and observe such reasonable rules and regulations pertaining to
the use and occupancy of the Premises or the Building set forth in Exhibit D attached
hereto, together with all reasonable amendments thereto as may be promulgated in writing hereafter
by Landlord (the “Rules and Regulations”). Landlord reserves the right from time to time to
reasonably amend or supplement said Rules and Regulations and to adopt and promulgate additional
reasonable Rules and Regulations that are applicable to the Premises and the Building and
applicable to all tenants of the Property, and upon receipt thereof, Tenant agrees thereupon to
comply with and observe any such additional, amended or supplemental Rules and Regulations. In the
event of any inconsistency between this Lease and the Rules and Regulations, the provisions of this
Lease shall prevail and control. Landlord shall promulgate and enforce the Rules and Regulations
in a non-discriminatory manner.

ARTICLE 16.

DAMAGE OR DESTRUCTION

16.1 Damage. In the event of total damage or destruction of the Building or Project, Tenant
shall have the right to terminate this Lease upon five (5) days’ written notice to Landlord
effective as of the date of the damage. In the event of a partial damage or destruction of the
Premises, Building or Project that materially negatively impacts (a) Tenant’s equipment or services
described in this Lease or (b) Tenant’s access to or use of the Premises; then as soon as possible,
but not later than five (5) days from the date of the damage, Landlord shall provide Tenant with
written notice (“Landlord’s Repair Notice”) of (1) the nature of the damage; (2) whether or
not Landlord shall repair the damage; (3) Landlord’s estimated time to repair the damage; and (4)
Landlord’s plan to mitigate the impact to Tenant during such repair. Tenant shall have the right to
consult with Landlord regarding Landlord’s proposed mitigation plan. Such mitigation plan shall
include, among other things, Tenant’s ability to operate from alternate Premises, whether in the
Project or elsewhere, with the costs and expenses of such alternate space and Tenant’s relocation
from and back to the Premises, together with all additional elements of cost and expense incurred
by Tenant as a result of such partial damage or destruction, allocated as agreed upon by the
parties pursuant to such mitigation plan. Landlord and Tenant shall each act reasonably and in
good faith in their efforts to agree upon a mitigation plan. If Landlord (x) elects not to repair
the damage or (y) the estimated time to restore essential services or access to the Premises
exceeds ten (10) days and Landlord and Tenant cannot agree upon a mitigation plan, then Tenant
shall have the right to terminate this Lease upon written notice to Landlord, effective as of the
date of such damage.

16.2 Repair. If this Lease is not terminated as provided above, Landlord shall thereafter
diligently (taking into account the time necessary to effectuate a satisfactory settlement with any
insurance company involved and obtain permits) restore and repair the Premises and the Building in
which the Premises is located to substantially the same condition they were in prior to such damage
using materials and workmanship equal to or better in quality than those originally incorporated
into the Premises; provided, however, if (i) if the damage or destruction was caused by a risk not
insured under the insurance policies that Landlord maintains on the Project, (ii) insurance
proceeds that, when added to any necessary deductible payment, would be sufficient for restoration
are unavailable for any reason (other than due to Landlord’s failure to maintain the insurance
coverage required hereunder) to restore the Premises and the Building, (iii) more than twenty-five
percent (25%) of a Building is destroyed as a result of such damage, (iv) Landlord cannot
reasonably reconstruct the damage within one hundred eighty (180) days from the date of casualty,
(v) any mortgagee under a mortgage or deed of trust covering a Building requires that the insurance
proceeds payable as a result of said casualty be used to retire all or any portion of the mortgage
debt, (vi) the Premises are materially damaged during the last year of the Term (subject to
Tenant’s right to extend the Term if Extended Terms remain available), or (vii) then-existing laws
or ordinances do not permit such restoration, then Landlord shall have the right, at its sole
option, to terminate this Lease by giving written notice of termination to Tenant within sixty (60)
days following the date of the damage, and further provided that Landlord’s determination of
whether to terminate shall be made in good faith and in a non-discriminatory manner, it being the
intent of the parties that Landlord not be able to use the provisions of this Article 16 to
terminate certain leases based solely on their being “below market” leases. If this Lease is
terminated pursuant to the preceding sentence, all Base Rent and Additional Rent payable hereunder
shall be equitably apportioned and paid to the date of the occurrence of such damage or
destruction, and neither Landlord nor Tenant shall have any further rights or remedies or
obligations as against each other pursuant to this Lease accruing after the date of termination.

16.3 Non-Termination. If this Lease is not terminated in accordance with the provisions of
Section 16.1, then, until the repair and restoration of the Premises is completed Tenant shall be
required to pay Base Rent and Additional Rent only for that portion of the Premises that Tenant, in
its reasonable judgment, is able to use (as such use is contemplated by this Lease) while repairs
are being made, provided that if Tenant asserts that Tenant is unable to use a portion of the
Premises pursuant to this Section 16.3, Tenant must cease its use of such portion of the Premises
during the abatement period. Landlord shall bear the costs and expense of repairing and restoring
the Premises, subject to the limitations on Landlord’s obligations set forth in this Article 16.
Notwithstanding any other provision of this Lease, if the Premises or the Building shall be totally
or partially damaged by fire or other casualty resulting from the gross negligence or the
intentional misconduct of Tenant, or its agents, employees, licensees, or invitees during the Lease
Term, and such damage is in whole or in part not covered by the insurance required of Landlord
hereunder, then the non-covered damage shall be repaired at the expense of Tenant under the
direction and supervision of Landlord, provided that Tenant shall not be liable for any insurance
deductibles unless the casualty was due solely to Tenant’s intentional misconduct.

16.4 Restoration of Tenant’s Property. If Landlord repairs and restores the Premises as
provided in this Article 16, Landlord shall not be required to repair or restore any alterations or
improvements to the Premises previously made by or at the expense of Tenant or any trade fixtures,
furnishings, equipment installed in the Premises by Tenant or personal property belonging to
Tenant. It shall be up to Tenant whether to elect to restore such items.

16.5 Tenant’s Right to Terminate. Notwithstanding anything to the contrary contained herein,
Tenant shall have the right to terminate this Lease by delivering written notice of such
termination to Landlord within thirty (30) days of Tenant’s receipt of Landlord’s Repair Notice if
Landlord’s Repair Notice states that the damage caused by such casualty cannot be fully repaired
within one hundred eighty (180) days from the date of casualty and if Tenant’s use of the Premises
is materially impaired by the damage. In addition, if, notwithstanding the time stated in
Landlord’s Repair Notice, the damage is not in fact materially restored within two hundred ten
(210) days of the date of casualty (subject to Tenant delay) and Tenant’s use of the Premises is
materially impaired during such period, then Tenant may terminate this Lease by delivering written
notice to Landlord within ten (10) days after the expiration of such period. Force Majeure shall
not apply to extend the time periods for restoration set forth in this Section 16.5. If Tenant
fails to elect to timely terminate this Lease pursuant to the preceding provisions, then such right
shall lapse and be of no further force or effect. If Tenant elects to terminate this Lease
immediately as permitted herein, Base Rent and Additional Rent shall abate from the date of the
occurrence of such casualty to the effective date of termination.

ARTICLE 17.

CONDEMNATION

17.1 Condemnation. If the whole or a substantial part of the Premises or all or a portion of
the Building required for Tenant’s reasonable use of the Premises is condemned or acquired in lieu
of condemnation by any governmental authority for any public or quasi-public use or purpose, then
the Lease Term shall cease and terminate as of the date when title vests in such governmental
authority. If less than a substantial part of the Premises, or a portion of the Building not
required for Tenant’s reasonable use of the Premises, is condemned or acquired in lieu of
condemnation by any governmental authority for any public or quasi-public use or purpose, the rent
shall be adjusted on a pro rata basis on the date when title vests in such governmental authority,
and this Lease shall otherwise continue in full force and effect. For purposes of this Section
17.1, a “substantial part of the Premises” shall be considered to have been taken if twenty-five
percent (25%) or more of the Premises is condemned or acquired in lieu of condemnation, or if less
than twenty-five (25%) of the Premises is taken if the portion of the Premises taken renders the
entire Premises unusable for the conduct of Tenant’s business. If twenty-five percent (25%) or
more of the Building is condemned (whether or not the Premises shall have been condemned), either
Landlord or Tenant may elect to terminate this Lease, provided that Landlord’s determination of
whether to terminate shall be made in good faith and in a non-discriminatory manner, it being the
intent of the parties that Landlord not be able to use the provisions of this Article 17 to
terminate certain leases based solely on their being “below market” leases.

17.2 Awards. All awards, damages and other compensation paid by the condemning authority on
account of such taking or condemnation (or sale under threat of such a taking) shall belong to
Landlord, whether made as compensation for diminution in value of the leasehold, for the taking of
the fee, or for severance damages. Tenant agrees not to make any claim against Landlord or the
condemning authority for any portion of such award or compensation attributable to damages to the
Premises, the value of the unexpired Term of this Lease, the loss of profits or goodwill, leasehold
improvements or severance damages. Nothing contained herein, however, shall prevent Tenant from
pursuing a separate claim against the condemning authority for the value of furnishings, equipment
and trade fixtures installed in the Premises at Tenant’s expense and for relocation expenses,
provided that such amounts are separately awarded and do not in any way diminish the award or
compensation payable to or recoverable by Landlord in connection with such taking or condemnation.

ARTICLE 18.

DEFAULT

18.1 Default by Tenant. The occurrence of any of the following shall constitute an “Event of
Default” by Tenant under this Lease:

(a) If Tenant shall fail to pay any scheduled installment of Base Rent or Additional Rent when
due and such failure shall continue uncured for a period of five (5) days after Landlord notifies
Tenant in writing of such failure.

(b) If Tenant shall fail to pay when due any other payment required by this Lease (other than
scheduled installments of Base Rent or Additional Rent), and such failure shall continue for a
period of twenty (20) days after Landlord notifies Tenant in writing of such failure.

(c) If Tenant shall violate or fail to perform any other material term, condition, covenant or
agreement to be performed or observed by Tenant under this Lease and such violation or failure
shall continue uncured for a period of thirty (30) days after Landlord notifies Tenant in writing
of such failure (or, if such failure is not reasonably susceptible to cure within such thirty (30)
day period, such longer period as may be reasonably necessary to complete such cure so long as
Tenant commences such cure within thirty (30) days and thereafter diligently prosecutes such cure
to completion).

(d) An Event of Bankruptcy as defined in Article 19 hereof.

18.2 (a) Termination of Lease or Termination of Possession. If there shall occur an Event of
Default under this Lease, Landlord shall have the right at its sole option, to the extent not in
violation of applicable law, without giving Tenant any further right to cure the Event of Default,
to terminate this Lease and Tenant’s right to possession, or Landlord may terminate Tenant’s right
to possession without termination of this Lease.

(b) Possession. After notice of an Event of Default and a termination of Tenant’s right to
possession or termination of this Lease as provided in Section 18.2 (a), Landlord, without further
notice and with no liability to Tenant, may lawfully repossess the Premises, by summary
proceedings, ejectment or otherwise, and may remove Tenant and all other persons and all property
from the Premises. After such repossession, Landlord shall use reasonable efforts to mitigate its
damages and may re-let the Premises, any part thereof, or the Premises with additional premises, in
Landlord’s name, without notice to Tenant, on commercially reasonable terms, including length of
term (which may be more or less than the period that would have been the balance of the Lease
Term).

(c) Termination Not Implied. No re-entry or taking of possession of the Premises by Landlord
shall be construed as an election to terminate this Lease unless a written notice of such intention
is given to Tenant or unless the termination thereof is decreed by a court of competent
jurisdiction.

18.3 (a) Survival. No provision in Section 18.2 shall relieve Tenant of its liabilities and
obligations under this Lease, all of which shall survive any termination, repossession and/or re
letting. Landlord shall not be deemed to accept a surrender of Tenant’s lease or otherwise
discharge Tenant because Landlord takes or accepts possession of the Premises or exercises control
over the Premises following an Event of Default. Acceptance of surrender and discharge may be done
only by an instrument executed on behalf of Landlord by its duly authorized officer or employee.

(b) Compensation. In the event of termination or repossession following an Event of Default,
Tenant shall pay to Landlord all Base Rent and Additional Rent (including, but not limited to, the
reasonable attorneys’ fees and other reasonable costs and expenses incurred by Landlord in the
enforcement of its rights with respect to such Event of Default) due through the earlier of the
date of termination or repossession. Further Tenant, with respect to that period of time beginning
on the day after the date of such termination or repossession and continuing through the end of
what would have been the Term in the absence of termination and whether or not the Premises or any
part have been re-let, is liable to Landlord for, and shall pay to Landlord, at Landlord’s election
either:

i. an amount equal to the Base Rent and Additional Rent that is due or that would have become
due from the date of the subject termination through the remainder of the Lease Term, less the
amount of net rents, if any, that Landlord receives during such period from others to whom the
Premises may be re let, which amount shall be computed and payable in monthly installments, in
advance, on the 1st day of each calendar month following such termination and continuing until the
date on which the Lease Term would have expired but for such termination, it being understood that
separate suits may be brought from time to time to collect any such damages for any month(s) (and
any such separate suit shall not in any manner prejudice the right of Landlord to collect any
damages for any subsequent month(s)), or Landlord may defer initiating any such suit until after
the expiration of the Lease Term (in which event such deferral shall not be construed as a waiver
of Landlord’s rights set forth herein and Landlord’s cause of action shall be deemed not to have
accrued until the expiration of the Term), it being further understood that any “net rent” (defined
below) shall operate only as an offsetting credit against the amount of Base Rent and Additional
Rent as the same thereafter becomes due and payable hereunder, but the use of such offsetting
credit to reduce the amount of Base Rent and Additional Rent due shall not be deemed to give Tenant
any right, title or interest in or to the same and any such net rent shall belong to Landlord
solely, and in no event shall Tenant be entitled to a credit on its indebtedness to Landlord in
excess of the aggregate sum of Base Rent and Additional Rent payable for the portion of the Term
corresponding to the term of the subject re-letting; or

ii. as liquidated damages for all Base Rent and Additional Rent due and payable under this
Lease through the balance of the Lease Term, an amount equal to the difference between (x) (A) the
value of all Base Rent and Additional Rent that had been earned by Landlord at the time of
termination of Tenant’s right to possession, plus interest thereon at the rate per annum that is
three percent (3%) higher than the Prime Rate, plus (B) the present value of all Base Rent and
Additional Rent that would have been earned after the date of termination of Tenant’s right to
possession through the end of the Term, plus (C) all other reasonable expenses incurred by Landlord
on account of Tenant’s default, less (y) the present value of all rents that Tenant proves Landlord
could have reasonably avoided by re-letting the Premises (net of all expenses, concessions and
other inducements, and all vacancy periods reasonably projected to be incurred in connection with
the re-letting of the Premises). The present value is to be determined in each case by discounting
at a rate per annum equal to the Prime Rate (defined in Section 4.6) existing on the date such
payment is demanded by Landlord, discounting from the respective dates upon which components of the
above referenced rents would have been payable, and which resulting amount shall be payable to
Landlord in a lump sum upon demand.

(c) Definitions. For purposes of this Section 18.3, the following terms shall apply:

i. The “net rents” received by Landlord from a re-letting shall be determined by first
deducting from the gross rents as and when received by Landlord from such re-letting, the costs
incurred or paid by Landlord in terminating this Lease or in re-entering the Premises and in
securing possession thereof, as well as the costs of re-letting, including altering and preparing
the Premises for new tenants, brokerage commissions and other costs chargeable to the Premises and
the re-rental thereof, it being understood that any such re-letting may be for a period shorter or
longer than the balance of the Lease Term but that such costs and concessions shall be amortized
over the duration of the replacement lease.

ii. As used in this Section 18.3 and elsewhere in this Lease, “Additional Rent” shall mean
Tenant’s obligations for payment of Tenant’s Pro Rata Share of Operating Expenses, Chilled Water
Charges, Meet Me Room Fees, and all other charges and amounts due and owing under this Lease.

(d) Mitigation. Notwithstanding any other provisions of this Lease to the contrary, Landlord
shall be obligated to use commercially reasonable efforts to mitigate its damages arising from any
Event of Default.

18.4 Remedies Cumulative. All rights and remedies of Landlord set forth herein are in
addition to all other rights and remedies available to Landlord at law or in equity. Subject to
the foregoing sentence, all rights and remedies available to Landlord hereunder or at law or in
equity are expressly declared to be cumulative, and the exercise by Landlord of any such right or
remedy shall not prevent the concurrent or subsequent exercise of any other right or remedy. No
delay in the enforcement or exercise of any such right or remedy shall constitute a waiver of any
default by Tenant hereunder or of any of Landlord’s rights or remedies in connection therewith.
Landlord shall not be deemed to have waived any default by Tenant hereunder unless such waiver is
set forth in a written instrument signed by Landlord. If Landlord waives in writing any default by
Tenant, such waiver shall not be construed as a waiver of any covenant, condition or agreement set
forth in this Lease except as to specific circumstances described in such written waiver.

18.5 No Waiver. If Landlord shall have a dispute with or institute proceedings against Tenant
and a compromise or settlement thereof shall be made, the same shall not constitute a waiver of any
default or of any other covenant, condition or agreement set forth herein, or of any of Landlord’s
rights hereunder, except to the extent agreed by Landlord in writing in connection with such
compromise or settlement. Neither the payment by Tenant of a lesser amount than the installments
of Base Rent, Additional Rent or of any sums due hereunder nor any endorsement or statement on any
check or letter accompanying a check for payment of rent or other sums payable hereunder shall be
deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such rent or other sums or to pursue any other remedy
available to Landlord. Notwithstanding any request or designation by Tenant, Landlord may apply
any payment received from Tenant to any payment then due. No act or conduct of Landlord, whether
consisting of the acceptance of the keys to the Premises, or otherwise, shall be deemed to be or
constitute an acceptance of the surrender of the Premises by Tenant prior to the expiration of the
Lease Term, and such acceptance by Landlord of surrender by Tenant shall only flow from and must be
evidenced by a written acknowledgment of acceptance of surrender signed by Landlord. The surrender
of this Lease by Tenant, voluntarily or otherwise, shall not work a merger unless Landlord elects
in writing that such merger take place, but shall operate as an assignment to Landlord of any and
all existing subleases, or Landlord may, at its option, elect in writing to treat such surrender as
a merger terminating Tenant’s estate under this Lease, and thereupon Landlord may terminate any or
all such subleases by notifying the sublessee of its election so to do effective immediately upon
Landlord’s delivery of such written notice.

18.6 Cure Right. Notwithstanding anything in this Lease to the contrary, if Tenant defaults
in the making of any payment or in the doing of any act herein required to be made or done by
Tenant, then Landlord may, but shall not be required to, make such payment or do such act
immediately upon delivery of written notice to Tenant. If Landlord elects to make such payment or
do such act, all costs and Operating Expenses incurred by Landlord, plus interest thereon at the
rate per annum that is three percent (3%) higher than the Prime Rate from the date paid by Landlord
to the date of payment thereof by Tenant, shall constitute Additional Rent hereunder and shall be
immediately paid by Tenant to Landlord; provided, however, that nothing contained herein shall be
construed as permitting Landlord to charge or receive interest in excess of the maximum rate then
allowed by law. The taking of such action by Landlord shall not be considered as a cure of such
default by Tenant or prevent Landlord from pursuing any remedy it is otherwise entitled to in
connection with such default.

18.7 Default Interest. If Tenant fails to make any payment of Base Rent or Additional Rent
(including any late charge) on or before the date such payment is due and payable, such payment
shall bear interest at the rate per annum that is three percent (3%) higher than the Prime Rate
from the date that failure to make such payment becomes an Event of Default; provided, however,
that nothing contained herein shall be construed as permitting Landlord to charge or receive
interest in excess of the maximum rate then allowed by law. Such interest shall be due and payable
hereunder with the next installment of Base Rent due hereunder.

18.8 Landlord Default. If Landlord defaults in the performance of any of its obligations
under this Lease, Tenant may notify Landlord of the default and, in such event, Landlord shall have
fifteen (15) days after receiving such notice to cure such default (or if such default cannot
reasonably be cured within fifteen (15) days, Landlord shall not be in default if it commences to
cure such default within fifteen (15) days of receiving Tenant’s notice and thereafter diligently
completes performance within a reasonable time, not to exceed ninety (90) days). The notice and
cure provisions for a Landlord’s default do not apply to a material breach of the requirements set
forth in Exhibit E, and the notice and cure periods, if any, stated in Exhibit E
shall be the sole notice and cure periods applicable to such defaults.

18.9 Tenant’s Remedies Cumulative. All rights and remedies of Tenant set forth herein are in
addition to all other rights and remedies available to Tenant at law or in equity. Subject to the
foregoing sentence, all rights and remedies available to Tenant hereunder or at law or in equity
are expressly declared to be cumulative, and the exercise by Tenant of any such right or remedy
shall not prevent the concurrent or subsequent exercise of any other right or remedy. No delay in
the enforcement or exercise of any such right or remedy shall constitute a waiver of any default by
Landlord hereunder or of any of Tenant’s rights or remedies in connection therewith. Tenant shall
not be deemed to have waived any default by Landlord hereunder unless such waiver is set forth in a
written instrument signed by Tenant. If Tenant waives in writing any default by Landlord, such
waiver shall not be construed as a waiver of any covenant, condition or agreement set forth in this
Lease except as to specific circumstances described in such written waiver.

ARTICLE 19.

BANKRUPTCY

19.1 Bankruptcy. The following shall be an “Event of Bankruptcy” under this Lease:

(a) The appointment of a receiver or custodian for a material percentage of Tenant’s property
or assets, or the institution of a foreclosure action upon any of Tenant’s real or personal
property, that is not dismissed within one hundred twenty (120) days of filing;

(b) The filing of a voluntary petition under the provisions of the Bankruptcy Code or similar
insolvency laws;

(c) The filing of an involuntary petition against Tenant as the subject debtor under the
Bankruptcy Code or similar insolvency laws that either (i) is not dismissed within ninety (90) days
of filing or (ii) results in the issuance of an order or relief against the debtor; or

(d) Tenant’s making or consenting to an assignment for the benefit of creditors or a common
law composition of creditors.

19.2 Remedies. Upon occurrence of an Event of Bankruptcy, Landlord shall have all rights and
remedies available to Landlord pursuant to Article 18, provided that while a case in which Tenant
is the subject debtor under the Bankruptcy Code is pending and only for so long as Tenant or its
trustee in Bankruptcy (hereinafter referred to as “Trustee”) is in compliance with the provisions
of Section 19.3 below, Landlord shall not exercise its rights and remedies pursuant to Article 18
unless permitted to do so under the Bankruptcy Code.

19.3 Trustee’s Rights. If Tenant becomes the subject debtor in a case pending under the
Bankruptcy Code, Landlord’s right to terminate this Lease pursuant to Section 19.2 shall be subject
to the rights of Trustee under the Bankruptcy Code. Trustee shall not have the right to assume or
assign this Lease unless Trustee promptly (i) cures all defaults under this Lease (to the extent
such cure is required pursuant to the Bankruptcy Code, as interpreted under applicable case law),
(ii) compensates Landlord for monetary damages incurred as a result of defaults that are required
to be cured, and (iii) provides adequate assurance of future performance on the part of Tenant as
debtor in possession or on the part of the assignee tenant.

ARTICLE 20.

SUBORDINATION; MORTGAGES

20.1 Subordination. This Lease shall be subject and subordinate to any and all mortgages
(which term “mortgages” shall include both construction and permanent financing and shall include
deeds of trust and similar security instruments) that may now or hereafter encumber the Land and/or
the Project, and to all and any renewals, extensions, modifications, recastings or refinancing
thereof, on the condition that Landlord shall deliver to Tenant an executed subordination,
non-disturbance and attornment agreement (“SNDA”) in favor of Tenant from any Landlord’s lender, in
a form as to which Tenant and such lender shall agree, within forty-five (45) days after (a) the
date of this Lease, or (b) the date of any subsequent lender recording, provided that such SNDA
shall not modify the rights or obligations of Tenant hereunder and that the Landlord’s lender
agrees to recognize this Lease and not disturb the Tenant so long as there is not an Event of
Default that would permit a termination of the Lease. Notwithstanding the foregoing, in the event
of a foreclosure of any such mortgage or of any other action or proceeding for the enforcement
thereof, or of any sale thereunder, the terms and conditions of this Lease shall continue in full
force and effect and this Lease shall not be terminated or extinguished, nor shall the rights and
possession of Tenant hereunder be disturbed, if no Event of Default exists under this Lease that
would permit a termination of the tenancy, and Tenant shall attorn to the person who acquires
Landlord’s interest hereunder through any such mortgage.

20.2 SNDAs. Tenant shall also execute and deliver to Landlord or Landlord’s lender, not more
often than once per calendar year within ten (10) Business Days after written demand therefor, one
or more additional SNDAs, in commercially reasonable form and substance and otherwise consistent
with the provisions of Section 20.1 above.

20.3 Notice to Mortgagees. Except as otherwise set forth in an SNDA with respect to a future
lender, after Tenant receives notice from any person, firm or other entity that it holds a mortgage
on the Building or the Land, no notice from Tenant to Landlord alleging any default by Landlord
shall be effective unless and until a copy of the same is given to such holder or trustee;
provided, however, that Tenant shall have been furnished written notice of the name and address of
such holder or trustee. The curing of any of Landlord’s defaults by such holder or trustee shall
be treated as performance by Landlord.

ARTICLE 21.

HOLDING OVER

Upon expiration or earlier termination of this Lease, Tenant shall promptly vacate the
Premises, leaving the Premises in the condition required hereunder. Unless otherwise expressly
agreed in writing, if Tenant remains in possession of all or any portion of the Premises after
expiration or termination of the Lease Term (as this Lease may be extended pursuant to Section 2.2
above) with Landlord’s consent, such possession by Tenant shall be deemed to be a month-to-month
tenancy of the space then occupied by Tenant (the “Occupied Space”) terminable by either party,
effective on the first day of the month following thirty (30) days’ advance written notice. All
provisions of this Lease, except those pertaining to Term and Base Rent, shall apply to the
month-to-month tenancy of the Occupied Space. If Tenant holds over with the Landlord’s consent,
during any holdover term, Tenant shall pay Base Rent for the Occupied Space in an amount equal to
the then applicable fair market rental value for the Occupied Space, but in no event shall Tenant
pay at a rate less than the Base Rent payable immediately prior to such holdover term. If Tenant
holds over without Landlord’s consent, then during any holdover term, Tenant will pay a
proportionate amount of the Base Rent for the Occupied Space at the rate applicable to the Occupied
Space in an amount (a) for the first sixty (60) days of holdover, equal to one hundred twenty five
percent (125%) of Base Rent for the Occupied Space for the last full calendar month during the
regular or extended Lease Term and (b) after the first sixty (60) days of holdover, equal to one
hundred fifty percent (150%) of Base Rent for the Occupied Space for the last full calendar month
during the regular or extended Lease Term, plus (c) one hundred percent (100%) of Tenant’s Pro Rata
Share of Additional Rent allocable to the Occupied Space, plus (d) any other amounts due under the
Lease, but except as specifically otherwise provided in this Article 21, Tenant shall not be liable
for any consequential damages arising from or relating to Landlord’s lost business opportunities or
otherwise. Acceptance by Landlord of Rents and/or other amounts due during any period of Tenant’s
holdover shall not result in a renewal of this Lease. The provisions of this Article 21 are in
addition to and do not affect Landlord’s right of re-entry or any other rights of Landlord
hereunder or as otherwise provided by law; provided, however, Tenant’s liability for rental
payments in connection with Tenant’s holdover of the Premises without consent is limited as stated
in this Article 21.

Landlord shall give Tenant written notice within ten (10) days after Landlord has a new tenant
(“New Tenant”) for the Premises or any portion thereof (“New Tenant Space”). If Tenant holds over
in the New Tenant Space without the consent of Landlord, and such holdover causes Landlord to
default under, or is otherwise the direct cause of damages suffered by Landlord under the terms of
the lease between Landlord and New Tenant with respect to the New Tenant Space, then Tenant shall
indemnify Landlord for Landlord’s actual out-of-pocket losses, costs, damages, and expenses
incurred by Landlord in connection with the New Tenant’s lease of the New Tenant Space.

ARTICLE 22.

COVENANTS OF LANDLORD

Landlord covenants that it has the right to make this Lease for the Lease Term
aforesaid, and that so long as Tenant shall pay all rent when due and perform all the
covenants, terms, conditions and agreements of this Lease to be performed by Tenant,
Landlord covenants that Tenant shall, subject to Landlord’s rights under this Lease,
during the term hereby created, freely, peaceably and quietly occupy and enjoy the full
possession of the Premises without disturbance, molestation or hindrance by any person
whatever either claiming by, through or under Landlord.

ARTICLE 23.

PARKING

23.1 During the Lease Term and all extensions and renewals, Landlord shall make available for
Tenant’s use without additional charge, the right to occupy areas of the Garage for parking,
including 296 spaces that shall be marked and reserved for the exclusive use of Tenant and its
designees during the hours of 7 a.m. to 5 p.m. on weekdays and available to Tenant on an
unassigned, first-come, first-served basis (the “Fisher Daily Parking Spaces”), and fifty (50)
parking spaces on levels P1, P2, and P3 of the Garage as designated at the Commencement Date by
mutual agreement of Landlord and Tenant (Landlord agreeing that any spaces designated as reserved
prior to the Commencement Date shall not need to be relocated), which shall be reserved for the
exclusive use of Tenant and its designees at all times, 24/7/365 (the “Reserved Spaces”). Landlord
shall issue to Tenant the appropriate passes, permits, or other devices necessary to grant Tenant
and its designees access to the Garage for all purposes stated in this Section 23. Landlord and
Tenant acknowledge that Tenant is not required to pay separate fees or charges for parking under
this Lease, but if any government authority implies any such fees or charges that result in any
parking related tax obligations, Tenant shall pay the same as and when due. Tenant shall comply
with that certain Transportation Management Program applicable to the Project, a memorandum of
which is recorded under King County Recording No. 20000314001539, to the extent that such program
requires tenants of the Building to comply with the same.

23.2 Tenant shall also have the right at all times without additional charge, to park and
store news, operations, and technology vehicles and equipment in the portion of level P2 of the
Garage segregated and reserved for Tenant’s exclusive use, as existing on the Commencement Date
(the “Operations Parking”). The Operations Parking consists of an agreed twenty seven (27) parking
spaces.

23.3 Upon any reduction in the Premises pursuant to Section 2.3 of this Lease or by agreement
with Landlord or otherwise, Tenant’s right to use Fisher Daily Parking Spaces shall be reduced in
proportion to the reduction in Premises.

23.4 Tenant shall have the right, without the consent of Landlord or any other person or
entity, to assign, sublease, sell, or otherwise transfer all or any of Tenant’s right to use the
Garage, either with or without such transfer being made in conjunction with any sublease of the
Premises or assignment of the Lease.

ARTICLE 24.

GENERAL PROVISIONS

24.1 Representations. Tenant acknowledges that neither Landlord nor any broker, agent or
employee of Landlord has made any representations or promises with respect to the Premises or the
Building except as herein expressly set forth, and no rights, privileges, easements or licenses are
being acquired by Tenant except as herein expressly set forth.

24.2 No Partnership. Nothing contained in this Lease shall be construed as creating a
partnership or joint venture of or between Landlord and Tenant, or to create any other relationship
between the parties hereto other than that of landlord and tenant.

24.3 Commissions. Landlord and Tenant each represents and warrants to the other that neither
of them has employed or dealt with any broker or agent in carrying on the negotiations relating to
this Lease except for CP Management I, LLC and CenturyPacific, L.L.L.P., engaged by Tenant
(“Tenant’s Agents”). The Tenant’s Agents shall be compensated by Tenant pursuant to a separate
agreement. Each party shall indemnify and hold the other harmless from and against any claim or
claims for brokerage or other commissions asserted by any broker or agent engaged or claiming to be
engaged by the indemnifying party or with whom the indemnifying party has dealt in connection with
this Lease.

24.4 Tenant Estoppel. Tenant agrees, at any time and from time to time, upon not less than
ten (10) Business Days’ prior written notice by Landlord, to execute, acknowledge and deliver to
the requesting party a statement in writing, substantially in the form attached hereto as
Exhibit K, (i) certifying, if true, that this Lease is unmodified and in full force and
effect (or if there have been any modifications, that the Lease is in full force and effect as
modified and stating the modifications); (ii) stating the dates to which the rent and any other
charges hereunder have been paid by Tenant; (iii) stating whether or not, to the best knowledge of
Tenant, Landlord is in default in the performance of any covenant, agreement or condition contained
in this Lease, and if so, specifying the nature of such default; (iv) stating the address to which
notices to Tenant are to be sent; and (v) stating such other information as Landlord or any
mortgagee or prospective mortgagee of the Project may reasonably request. Any such statement
delivered by Tenant may be relied upon by any landlord of the Project or the land upon which it is
situated, any prospective purchaser of the Project or such land, any mortgagee or prospective
mortgagee of the Project or such land or of Landlord’s interest therein, or any prospective
assignee of any such mortgagee. If Tenant fails to respond within the time period set forth above,
then Landlord shall deliver a notice accompanied by a second copy of the same estoppel, and if
Tenant fails thereafter to respond within five (5) Business Days from receipt of such second copy,
then Tenant shall be deemed to have assented to all matters set forth in good faith therein.

24.5 Landlord Estoppel. Landlord agrees, at any time and from time to time, upon not less
than fifteen (15) days’ prior written notice by Tenant, to execute, acknowledge and deliver to the
requesting party a statement in writing, substantially in the form attached hereto as Exhibit
K, (i) certifying, if true, that this Lease is unmodified and in full force and effect (or if
there have been any modifications, that the Lease is in full force and effect as modified and
stating the modifications); (ii) stating the dates to which the rent and any other charges
hereunder have been paid by Tenant; (iii) stating whether or not, to the best knowledge of
Landlord, Tenant is in default in the performance of any covenant, agreement or condition contained
in this Lease, and if so, specifying the nature of such default; (iv) stating the address to which
notices to Landlord are to be sent; and (v) stating such other information as Tenant may reasonably
request. Tenant may give any such statement by Landlord to any lender, prospective lender,
assignee, subtenant or purchaser of all or any substantial part of Tenant or its assets, or any
purchaser of Tenant’s assets in the Building and any such party may rely upon such statement as of
the date set forth in the statement. If Landlord fails to respond within the time period set forth
above, then Tenant shall deliver a notice accompanied by a second copy of the same estoppel, and if
Landlord fails thereafter to respond within five (5) Business Days from receipt of such second
copy, then Landlord shall be deemed have assented to all matters set forth in good faith therein.

24.6 Waiver of Trial by Jury. LANDLORD AND TENANT EACH HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM AGAINST THE OTHER IN CONNECTION WITH
ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND
TENANT HEREUNDER, TENANT’S USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM OF INJURY OR DAMAGE.

24.7 Notices. Subject to the terms and conditions of this Lease to the contrary, all notices
or other communications required hereunder shall be in writing and shall be sent by either
certified or registered mail, return receipt requested, or by FedEx or another nationally
recognized overnight courier service, with postage prepaid, and shall be deemed sufficiently given
only if served in a manner set forth herein, to the following addresses:

If to Landlord:

	 	 	 
	c/o Hines Interests Limited Partnership

	2800 Post Oak Boulevard, Suite 5000

	Houston, Texas 77056

Attn:

	 	

Charles N. Hazen

and

	 	 	 
	Hines

	 	

	800 Fifth Avenue, Suite 3838

	Seattle, Washington 98104

	Attn:

	 	Ty Bennion

with a copy to:

Hines Advisors Limited Partnership

2800 Post Oak Boulevard, Suite 5000

Houston, Texas 77056

Attn: Jason P. Maxwell, Esq. – Corporate Counsel

and

	 	 	 
	Baker Botts L.L.P.

	910 Louisiana Street

	One Shell Plaza

	Houston, Texas 77002

	Attn:

	 	Consuella S. Taylor

The Emergency telephone contact number for Landlord shall be:       .

If to Tenant, then duplicate notices need to be sent to each of the General Counsel and CFO
of Tenant at the following addresses:

Fisher Communications, Inc.

140 4th Avenue North, Suite 500

Seattle, Washington 98019

Attn: Chief Financial Officer / General Counsel

with a copy to:

Gordon Derr LLP

2025 First Avenue, Suite 500

Seattle, Washington 98121

Attn: Susan A. Shyne

The Emergency telephone contact number for Tenant shall be:       .

Either party may change its address or Emergency phone contact numbers for the giving of notices by
notice given in accordance with this Section 24.7. Notices delivered by FedEx or other nationally
recognized overnight courier service shall be deemed given on the Business Day immediately
following deposit with the overnight courier. Notices shall not be effective if sent by any other
method. A copy of all notices required or permitted to be given to Landlord hereunder shall be
concurrently transmitted to such party or parties at such addresses as Landlord shall from time to
time hereafter designate by notice to Tenant.

24.8 Invalidity. If any provision of this Lease or the application thereof to any person or
circumstances shall to any extent be invalid or unenforceable, the remainder of this Lease, or the
application of such provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be
valid and enforced to the fullest extent permitted by law.

24.9 Pronouns. Feminine or neuter pronouns shall be substituted for those of the masculine
form, and the plural shall be substituted for the singular number, in any place or places herein in
which the context may require such substitution.

24.10 Successors & Assigns. The provisions of this Lease shall be binding upon, and shall
inure to the benefit of, the parties hereto and each of their respective representatives,
successors and assigns, subject to the provisions hereof restricting assignment or subletting by
Tenant.

24.11 Entire Agreement. This Lease contains and embodies the entire agreement of the parties
hereto with respect to the Lease of the Premises and supersedes all prior agreements, negotiations
and discussions between the parties hereto. Any representation, inducement or agreement that is
not contained in this Lease shall not be of any force or effect. This Lease may not be modified or
changed in whole or in part in any manner other than by an instrument in writing duly signed by
both parties hereto.

24.12 Governing Law/Venue. This Lease shall be governed by and construed in accordance with
the laws of the State of Washington. The venue for any action to enforce the terms of this Lease
shall be in the Superior Court for King County, Washington.

24.13 Headings. Article and section headings are used herein for the convenience of reference
and shall not be considered when construing or interpreting this Lease.

24.14 Not an Offer. The submission of an unsigned copy of this document to either party for
consideration does not constitute an offer to lease the Premises or an option to or for the
Premises. This document shall become effective and binding only upon the execution and delivery of
this Lease by both Landlord and Tenant, and the closing of the purchase by Landlord of the Project.

24.15 Time. Time is of the essence of each provision of this Lease.

24.16 Recording. This Lease shall not be recorded. However, the parties shall prepare and
record a memorandum of this Lease in a form reasonably acceptable to both parties. Tenant shall
pay all costs of filing such memorandum. Upon termination of this Lease, Tenant covenants to
execute and deliver a recordable memorandum of such termination.

24.17 Timing of Payments. Except as otherwise provided in this Lease, any Additional Rent
owed by Tenant to Landlord and any cost, expense, damage or liability shall be due to Landlord
within thirty (30) days after the date Landlord notifies Tenant of the amount of such Additional
Rent or such cost, expense, damage or liability. If any payment hereunder is due after the end of
the Lease Term, such Additional Rent or such cost, expense, damage or liability shall be paid by
Tenant to Landlord not later than thirty (30) days after Landlord notifies Tenant of the amount of
such Additional Rent or such cost, expense, damage or liability.

24.18 Attorneys’ Fees. If any party brings an action or proceeding to enforce the terms
hereof or declare rights hereunder, the Prevailing Party (hereafter defined) in any such proceeding
shall be entitled to reasonable attorneys’ fees. The term “Prevailing Party” shall include,
without limitation, a party who substantially obtains or defeats the relief sought.

24.19 Survival. Except as expressly set forth herein to the contrary, all of the parties’
duties and obligations hereunder shall survive the termination of this Lease for any reason
whatsoever.

24.20 Force Majeure. Subject to limitations set forth in other provisions of this Lease, if
either party is in any way delayed, interrupted or prevented from performing any of its obligations
under this Lease (other than the payment of amounts due hereunder), and such delay, interruption or
prevention is caused by war, enemy action, acts of God or similar catastrophe or similar events
beyond such party’s reasonable control (but specifically excluding by reason of failure of power to
be delivered to the Building by any third party including any local utility provider, except as may
be provided otherwise in Exhibit E) (all of which are collectively referred to herein as
“Force Majeure”), then such adversely affected party shall be excused from performing the affected
obligations for the period of such delay, interruption or prevention.

24.21 Authority. Each party hereby represents and warrants to the other that all necessary
corporate or company action has been taken to enter into this Lease, that the person signing this
Lease on behalf of such party has been duly authorized to do so, that all consents required by such
party to enter into this Lease have been received and that no further consent from any party is
required to enter into this Lease.

24.22 Additional Rent. Any amounts required to be paid by Tenant under this Lease other than
Base Rent shall be considered “Additional Rent.”

24.23 Announcements Regarding Lease and Tenant’s Occupancy. Both Landlord and Tenant
acknowledge that the terms and conditions of this Lease are to remain confidential for both
parties’ benefit, and may not be disclosed by either party to anyone, by any manner or means,
directly or indirectly, without the other party’s prior written consent, not to be unreasonably
withheld, conditioned or delayed, to be given within ten (10) days of the request therefor; failure
to respond to the other party’s request for consent within said time period shall be deemed to be
consent thereto; however, Landlord or Tenant may file a copy of this Lease with the Securities and
Exchange Commission and disclose the terms and conditions of this Lease to its respective
attorneys, accountants, employees and existing or prospective financial partners and their agents
and employees, purchasers and prospective purchasers of any Affiliate, division or business unit of
Tenant and their agents and employees, and existing or prospective lenders and their agents and
employees, provided same are advised by Landlord or Tenant (as the case may be) of the confidential
nature of such terms and conditions and agree to maintain the confidentiality thereof (in each
case, prior to disclosure). Subject to the other terms and conditions of this Lease, the
disclosing party shall be liable for any direct damages resulting from disclosure made in violation
of this Section 24.23 by the disclosing party or by any entity or individual to whom the terms and
conditions of this Lease were disclosed or made available by the disclosing party. The consent by
either party to any disclosures shall not be deemed to be a waiver on the part of such party of any
prohibition against any future disclosures. Tenant represents to Landlord and Landlord represents
to Tenant that as of the date hereof, no information has been disclosed by either party which
disclosure would have constituted a violation of this Section 24.23 had it been in effect at the
time of such disclosure.

24.24 Confidential Information. Landlord and Tenant shall each comply with the Non-Disclosure
Agreement for all Confidential Information as defined therein, in the form attached as Exhibit
H or such other form as the parties hereto reasonably agree upon.

24.25 Compliance with Applicable Laws. Nothing contained in this Section 24 shall prohibit
Landlord or Tenant from disclosing information, or impose any liability on Landlord or Tenant or
Landlord’s or Tenant’s respective legal representatives, employees or agents, for disclosures of
information made to comply with applicable laws, court orders, or any applicable rules or
regulations, including rules and regulations of the Securities and Exchange Commission. If
Landlord or Tenant reasonably believes it is obligated by law to disclose terms and conditions of
this Lease, and/or all or a portion of the Confidential Information (including, without limitation,
under the terms of a subpoena or other order issued by a court of competent jurisdiction or by a
government agency or other request), the party to whom such request is made shall: (i) promptly
notify the other party in writing of the existence, terms and circumstances surrounding such a
request, if applicable; (ii) reasonably cooperate with such other party, at no cost to the party to
whom the request was made (and such other party shall reimburse the party to whom the request was
made for its reasonable out-of-pocket attorneys’ fees), to determine what portion of the
Confidential Information is legally required to be disclosed, and to obtain an order or other
reliable assurance that confidential treatment (if legally possible) will be accorded to any
portion of the Confidential Information that is required to be disclosed. Unless otherwise
mutually agreed in writing, a party’s confidentiality obligations with respect to each item of
Confidential Information shall terminate upon the expiration or earlier termination of this Lease.

24.26 Exhibits. This Lease includes and incorporates Exhibits A, B, C, D, E, F, G, H, I, J,
and K, attached hereto. 

24.27 Counterparts. This Lease may be executed in separate counterparts, each of which shall
constitute an original and all of which, together, shall constitute one and the same instrument.
This Lease shall be fully executed when each party whose signature is required has signed and
delivered to each of the parties at least one counterpart, even though no single counterpart
contains the signatures of all parties hereto.

24.28 Business Day. The term “Business Day” means any day other than (a) Saturday, (b)
Sunday, or (c) any legal holiday on which banking institutions are authorized or required by law to
be closed for business in the city where the Premises are located.

24.29 Right of First Opportunity.

24.29.1 Marketing Notice/Notice of Sale. Provided there then exists no uncured Event
of Default (beyond all applicable notice and cure periods) by Tenant under this Lease,
Tenant shall have the right of first opportunity to repurchase the Project or one of the
Buildings as described in the Sale Notice (defined below) (“Repurchase ROFO”) in the event
Landlord, in its sole discretion, elects to sell the Project or one of the Buildings. Prior
to completing any sale, Landlord shall provide Tenant with written notice (the “Sale
Notice”) of Landlord’s intent to sell the Project or one of the Buildings (such described
property, the “ROFO Property”). Tenant shall have ten (10) Business Days from receipt of
such notice to provide Landlord with irrevocable written notice (the “ROFO Notice”) of its
intent to purchase the ROFO Property (“ROFO Effective Date”) on the terms and conditions set
forth in the Sale Notice, pursuant to a purchase and sale agreement with customary terms to
be agreed to and executed by Tenant and Landlord (“ROFO PSA”). Along with its ROFO Notice,
Tenant shall tender to escrow a deposit equal to five percent (5%) of the offer price listed
in the Sale Notice (the “Offer Price”). The closing date shall occur pursuant to the terms
of the ROFO PSA no later than ninety (90) days after the ROFO Effective Date.

24.29.2 Reapplication of Repurchase ROFO. If Tenant does not provide the ROFO Notice
or the deposit described above, Landlord shall be free to market the ROFO Property for sale
to a third party. So long as such a sale closes within thirteen (13) months of Landlord’s
Sale Notice, and so long as the purchase price is not less than ninety percent (90%) of the
Offer Price, Landlord shall be free to close such a sale. In the event that Landlord does
close such a sale, Tenant’s Repurchase ROFO shall terminate permanently as to the portion of
the Project sold. If Landlord does not close a sale within the required time, or if the
purchase price is less than ninety percent (90%) of the Offer Price, then the Repurchase
ROFO shall be reinstated and Landlord must offer the ROFO Property to Tenant again prior to
closing a sale.

24.29.3 Inapplicability of Repurchase ROFO. Notwithstanding the above, the Repurchase
ROFO is intended to apply only to voluntary transfers involving third party transferees.
This Repurchase ROFO shall not, therefore, apply where the Project, or any portion thereof,
is transferred pursuant to foreclosure of a mortgage or deed in lieu thereof, is taken by
eminent domain or sold under threat of condemnation, or is transferred to affiliates of
Landlord or Hines Interests Limited Partnership, nor shall it apply to inter-family or
inter-ownership transfers, to transfers by Landlord to any trust created by Landlord, or, if
Landlord is a trust, to transfers to a trust beneficiary.

24.29.4 Assignment. The Repurchase ROFO is granted to Tenant and may not be assigned
as part of an assignment of this Lease in accordance with Article 7 above except to a Tenant
Affiliate. Upon any attempted assignment of any right in or to the “bare” Repurchase ROFO
to any other person or entity except as permitted in this Lease, the Repurchase ROFO (and
all of this Section 24.29) shall be immediately null and void. Furthermore, the Repurchase
ROFO shall not survive any termination of this Lease, but shall automatically terminate
without any required further action on the part of any party concurrent with termination of
this Lease for any reason whatsoever.

24.30 Leasehold Financing.

Notwithstanding any other provision of this Lease to the contrary, Tenant shall have the right
to encumber the leasehold estate created by this Lease to any bank, savings and loan association,
insurance company or other institutional lender without the consent of Landlord, and to replace
such encumbrance with a replacement encumbrance in favor of an institutional lender upon one or
more subsequent refinancings. With respect to any such mortgagee of Tenant’s leasehold interest
(“leasehold mortgagee”), the name and address of which shall have been furnished to Landlord,
Landlord agrees to give such leasehold mortgagee written notice of any Event of Default by Tenant
and grants to such leasehold mortgagee an opportunity to cure any such Event of Default by Tenant
within the same period of time granted Tenant hereunder to cure such Event of Default. During such
period, Landlord shall refrain from exercising any of its rights and remedies to terminate this
Lease. All such notices shall be sent to Tenant’s leasehold mortgagee at the most recent address
as to which Tenant shall have notified Landlord, in writing. This provision shall be binding in
accordance with its terms upon beneficiaries and trustees in deeds of trust, mortgagees in
mortgages, and receivers thereunder and purchasers at any sale pursuant thereto, and transferees of
any deed given in lieu thereof, and the holder of any other lien.

[REMAINDER OF PAGE BLANK, SIGNATURES ON NEXT PAGES]

5

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease under seal on or as of the
day and year first above written.

LANDLORD:

HINES GLOBAL REIT 100/140 FOURTH AVE LLC

a Delaware limited liability company

By:

Name

Title:

Date Signed:

	 	 	 
	STATE OF WASHINGTON

COUNTY OF

	 	)

) ss.

)

I certify that I know or have satisfactory evidence that        is the person who
appeared before me, and he/she acknowledged that he/she signed this instrument, on oath stated that
he/she was authorized to execute the instrument and acknowledged it as the       ,
     of       , a       , to be the
free and voluntary act of such party for the uses and purposes mentioned in this instrument.

DATED:       

(Signature of Notary Public)

(Printed Name of Notary Public)

My Appointment expires

(Insert notary seal here)

TENANT:

FISHER COMMUNICATIONS, INC.

a Washington corporation

By:

Name

Title:

Date Signed:

	 	 	 
	STATE OF WASHINGTON

COUNTY OF

	 	)

) ss.

)

I certify that I know or have satisfactory evidence that        is the person
who appeared before me, and he/she acknowledged that he/she signed this instrument, on oath stated
that he/she was authorized to execute the instrument and acknowledged it as the        of
FISHER COMMUNICATIONS, INC., a Washington corporation, to be the free and voluntary act of such
party for the uses and purposes mentioned in this instrument.

DATED:       

(Signature of Notary Public)

(Printed Name of Notary Public)

My Appointment expires

EXHIBIT Q

FORM OF REIMBURSEMENT AGREEMENT

6

REIMBURSEMENT AGREEMENT

This REIMBURSEMENT AGREEMENT (“Reimbursement Agreement”) is made and entered into as of
     , 2011 (“Effective Date”), by and between FISHER COMMUNICATIONS, INC., a
Washington corporation (“Fisher”), and HINES GLOBAL REIT 100/140 FOURTH AVE LLC, a Delaware limited
liability company (“Hines”). Fisher and Hines are collectively referred to herein as the “Parties”
and are individually referred to herein as a “Party.”

RECITALS

A. Hines owns that certain real property located in Seattle, Washington that is more
particularly described on EXHIBIT A attached hereto (“Property”), which property is
commonly known as “Fisher Plaza.” The Property is comprised of two tax parcels (King County Tax
Parcel Nos. 1991200150 and 1991200170) and is improved with two buildings, one commonly known as
100 Fourth Avenue North, Seattle, Washington 98109 (“Fisher Plaza West”), and the second commonly
known as 140 Fourth Avenue North, Seattle, Washington 98109 (“Fisher Plaza East,” such buildings
together with the Property, “Project”).

B. Hines currently leases space within Fisher Plaza East to Fisher pursuant to that certain
Lease dated     , 2011 (“Fisher Lease”). A Service Level Agreement is attached as
Exhibit E to the Fisher Lease (the “SLA”), which governs the parties’ rights and obligations with
respect to power and chilled water to be supplied to the Premises. Hines also currently leases
other portions of the Project to different office, data center, retail, co-location and carrier
tenants and to certain occupants. A list of all of the tenants and occupants in Fisher Plaza East
(the “Existing East Occupants”) and their respective leases and occupancy agreements as of the
Effective Date hereof, including Fisher and the Fisher Lease, is attached hereto as EXHIBIT
B.

C. Hines purchased the Property from Fisher Media Services Company, a Washington corporation
and an affiliate of Fisher (the “Property Purchase”). To ensure that the existing power and
cooling facilities for Fisher Plaza East (“Existing East Facilities”) remain sufficient, an
additional generator and/or chiller may be required to be installed at Fisher Plaza East
(collectively, “Upgrade Facilities”).

D. Fisher has agreed to share in a portion of cost of the Upgrade Facilities if they are ever
required for Fisher Plaza East as a result of the Existing East Occupants’ demand for power or
chiller use under the terms of their respective leases and occupancy agreements (as such leases and
occupancy agreements exist on the Effective Date hereof, “Existing East Leases”). The parties now
desire to enter into this Reimbursement Agreement to memorialize the terms under which Fisher will
be required to bear a portion of the cost of the Upgrade Facilities.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:

1. Reimbursement Obligation. Subject to the terms of this Reimbursement Agreement, if the
Existing East Occupants increase their power and/or chiller consumption as authorized under the
terms of their respective Existing East Leases such that (a) the combined power consumption at
Fisher Plaza East exceeds a daily maximum of 6,096 Amps (480 VAC) for fourteen (14) consecutive
days (as measured by Hines’ PowerLogic SquareD system) (“Power Consumption Threshold”) and/or (b)
the combined chiller consumption at Fisher Plaza East exceeds 600 tons of cooling for any portion
of the day for fourteen (14) consecutive days (as measured by the Alerton Building Management
System) (“Chiller Consumption Threshold” and together with the Power Consumption Threshold,
“Consumption Thresholds”); and, as a result of either or both of (a) and (b) above, Hines is
required to install Upgrade Facilities to ensure that Fisher Plaza East can meet such increased
demands of the Existing East Occupants, then, and only in such event, Fisher shall reimburse Hines
for fifty percent (50%) of the actual, reasonable third party out-of-pocket, as-built cost for any
required Upgrade Facilities actually installed (i.e., no administrative fees) up to a maximum
aggregate reimbursement amount of One Million Five Hundred Thousand and No/100 Dollars
($1,500,000.00) (“Reimbursement Payment”). Fisher shall have no obligation to make the
Reimbursement Payment unless and until Hines installs and operates the Upgrade Facilities and
supplies Fisher with copies of all invoices therefor and any other documentation reasonably
required by Fisher. If neither Consumption Threshold is reached, or Hines does not deliver any
Upgrade Notice (defined below) to Fisher before the expiration of the initial Term of the Fisher
Lease, then this Reimbursement Agreement shall terminate and Fisher’s obligation to make the
Reimbursement Payment shall automatically expire. The parties hereto agree that any Reimbursement
Payment made by Fisher to Hines shall be treated by the parties as an adjustment to (i.e.,
reduction in) the purchase price paid by Hines in connection with the Property Purchase, subject to
then prevailing accounting rules and tax regulations.

2. Notice.

2.1 Threshold Notification. To be eligible to receive the Reimbursement Payment, Hines must
notify Fisher on each occasion when power or chiller consumption at Fisher Plaza East as a result
of authorized use by the Existing East Occupants reaches seventy percent (70%) of the applicable
Consumption Threshold (“70% Notice”), again when such power or chiller consumption reaches eighty
percent (80%) of the applicable Consumption Threshold (“80% Notice,” together with the 70% Notice,
“Early Notices”) and finally whenever such power or chiller consumption reaches or exceeds the
applicable Consumption Threshold (“Upgrade Notice”). If Hines sends any 80% Notice, the notice
shall identify the Consumption Threshold that has been reached or exceeded, and shall include a
reasonably detailed description of and a preliminary budget for the Upgrade Facilities that Hines
proposes to install and the estimated cost therefor. Hines shall thereafter immediately commence
the planning, designing and permitting of such Upgrade Facilities (but shall have no obligation to
commence installation until such Upgrade Facilities are approved as provided herein). Hines shall
proceed to diligently complete the installation of the Upgrade Facilities, unless Fisher objects to
the proposed Upgrade Facilities pursuant to Section 2.2 below; provided, however, that in no event
will Fisher have any obligation to make any Reimbursement Payment unless and until one or both of
the applicable Consumption Thresholds are reached, the Upgrade Notice is delivered to Fisher, and
the approved Upgrade Facilities are installed and operating.

2.2 Right to Audit and Inspect. Fisher shall have the right to audit all records concerning
power and/or chiller consumption at Fisher Plaza East that are in the possession or under the
control of Hines or any property manager or similar agent of Hines (collectively “Power & Chiller
Records”) and the right to inspect the Existing East Facilities at any time after receiving an
Early Notice. Hines shall make all Power & Chiller Records available, and reasonably cooperate
with Fisher and its representatives regarding any desired inspections, provided that Hines shall
have the right to have a representative present during any such inspections. If Fisher conducts
any such audits or inspections after an Early Notice, Fisher shall share the results of the same
with Hines.

2.3 Objections. Upon receiving any 80% Notice, Fisher shall have the right, based on evidence
collected by Fisher, to reasonably object to (a) the fact that consumption has reached eighty
percent (80%) of one or both of the Consumption Thresholds , (b) the suitability of the type of
Upgrade Facilities that Hines proposes to install (provided that Fisher shall have no right to
object to the type of Upgrade Facilities that Hines intends to install if such Upgrade Facilities
are comparable to the existing generators and/or chillers, as applicable, serving Fisher Plaza East
on the Effective Date), and/or (c) the estimated cost of such Upgrade Facilities. Upon receiving
any Upgrade Notice indicating that either or both Consumption Thresholds have been reached, Fisher
shall again have the right, based on evidence collected by Fisher, to reasonably object to the fact
that one or both of the Consumption Thresholds have been reached. Fisher shall deliver any such
objection notices (“Objection Notice”) and any evidence therefor to Hines within ten (10) business
days of Fisher’s receipt of any 80% Notice or Upgrade Notice, as applicable. If, after reviewing
any Objection Notice and the evidence provided therefor, Hines disagrees with such Objection
Notice, Hines shall notify Fisher by written notice (“Exception Notice”) given to Fisher within ten
(10) business days after Hines’ receipt of any Objection Notice. The matter shall thereafter be
resolved by binding arbitration in accordance with the following. The Parties shall mutually agree
to appoint one (1) licensed professional engineer with substantial experience dealing with systems
similar to the Existing East Facilities, improvements similar to the contemplated Upgrade
Facilities and projects similar to Fisher Plaza East, which engineer shall be appointed within
thirty (30) days after any Exception Notice. Failing such agreement on an engineer, either Party
shall have the right to petition for the appointment of an engineer with the foregoing
qualifications by the Presiding Judge of the Superior Court of King County. The engineer
ultimately appointed shall serve as the arbitrator for the dispute. Within ten (10) days after any
appointment of the engineer as provided above, the Parties shall each submit to the engineer (and
to each other) any written evidence that either Party reasonably deems appropriate and relevant to
the matter. There shall be no hearing or oral presentation to the engineer. Within thirty (30)
days after the end of any such ten (10) day evidentiary period, the engineer shall decide (y) with
respect to any objection to an 80% Notice, (i) if consumption has reached eighty percent (80%) of
either or both Consumption Thresholds (as applicable), (ii) if the type of Upgrade Facilities
specifically proposed by Hines are necessary (provided that the engineer shall not decide if the
type of Upgrade Facilities that Hines intends to install are necessary if such Upgrade Facilities
are comparable to the existing generators and/or chillers, as applicable, serving Fisher Plaza East
on the Effective Date); and (iii) whether the estimated cost of such Upgrade Facilities proposed by
Hines is proper and reasonable, and (z) with respect to any objection to an Upgrade Notice, if
either or both Consumption Thresholds (as applicable) were reached. If the engineer determines
that Upgrade Facilities in general are suitable, but that the specific Upgrade Facilities proposed
by Hines are not necessary, Fisher’s Reimbursement Payment obligations shall be based only on those
Upgrade Facilities that the engineer determines are reasonably necessary and suitable. In making
its determination, the engineer shall be entitled to review all Power & Chiller Records, to make
any desired inspections of the Existing East Facilities and to consult any experts that he or she
deems necessary and suitable. Any decision of the engineer shall be final and binding upon the
Parties. The cost of the engineer and any experts consulted shall be paid for by Hines if it is
determined that its proposed Upgrade Facilities are not reasonably necessary, by Fisher if it is
determined that Hines’ specifically proposed Upgrade Facilities are necessary, or split equally
between the Parties if it is determined that the Upgrade Facilities proposed by Hines are
reasonably necessary, but the cost proposed therefor is found to be excessive. Nothing in this
Section 2.3 shall prevent Hines from proceeding to install any Upgrade Facilities it desires to
install; provided, however, that if Fisher has delivered an Objection Notice as provided herein,
then Fisher shall have no obligation to make the Reimbursement Payment until the Parties reach
mutual agreement upon settlement of Fisher’s objection or until the foregoing arbitration process
has been concluded (in which case Fisher shall make the Reimbursement Payment in accordance with
Section 1 and Section 2.1 above).

2.4 SLA and Lease Obligations. Once Upgrade Facilities have been approved as provided herein
(whether through the procedures in Section 2.3 or otherwise), Hines agrees to comply with the
following schedule (the “Upgrade Construction Schedule”): (a) within two (2) weeks following
approval, Hines shall complete the design and planning for the Upgrade Facilities; provided,
however, if Hines has not been required to deliver the 80% Notice to date, or there have not been
at least twelve (12) weeks between delivery of the 80% Notice and delivery of the Upgrade Notice,
the two (2) week period in this clause (a) shall be extended to be (i) twelve (12) weeks less the
number of weeks between delivery of the 80% Notice and delivery of the Upgrade Notice (but in no
event less than two (2) weeks) or (ii) twelve (12) weeks if Hines has not been required to deliver
the 80% Notice; (b) within two (2) weeks thereafter, Hines shall submit the design and plans for
permits and diligently work to obtain the applicable permit(s); (c) within one (1) week after
receipt of the applicable permits, Hines shall order all long lead time items (including, without
limitation, the generator and/or chiller, as applicable); and (d) within one (1) week after receipt
of all long lead time items, Hines shall commence installation of the Upgrade Facilities. Hines
shall diligently pursue all aspects of the Upgrade Construction Schedule through completion of the
Upgrade Facilities. During the period of time commencing on the delivery of an Upgrade Notice to
Fisher and continuing through the earlier of (y) the date that the engineer has determined under
Section 2.3 above that neither Consumption Threshold has been reached, or (z) the date on which
Hines has completed the installation and commenced operation of the approved Upgrade Facilities in
compliance with the Upgrade Construction Schedule (the “N+1 Abeyance Period”), Fisher agrees that
Hines shall not be deemed in violation of the Fisher Lease or the SLA for the failure to provide
the applicable N+1 level of Power and/or CHW capacity (whichever Consumption Threshold has been
met); provided that Hines continues to supply Power and CHW to Fisher in the amounts and types
required to be provided as of the Effective Date under the Fisher Lease and the SLA, and further
provided that Hines does not, during the N+1 Abeyance Period, supply Power and/or CHW to any other
tenant or occupant of Fisher Plaza East at levels in excess of those committed to the Existing East
Occupants as of the Effective Date. The N+1 Abeyance Period shall not exceed a total of eight (8)
months unless Hines can establish that it is unable to obtain delivery of the Upgrade Facilities
despite its diligent good faith efforts to do so, because of delivery delays of the manufacturer,
or other reasons outside the control of Hines. After the end of the N+1 Abeyance Period, Hines
shall resume the provision of N+1 levels of Power and CHW capacity to Fisher as set forth in the
Fisher Lease and the SLA.

        .

2.5 Notices. Any notice given under this Reimbursement Agreement must be in writing and
personally delivered, delivered by recognized overnight courier services, or given by U.S. first
class certified mail. In addition, for all methods of notice, notices to each party shall be
copied to the respective email addresses set forth below. Notices shall be delivered to the
following addresses:

	 	 	 
	Fisher:
	 	Fisher Communications, Inc.

140 4th Avenue North, Suite 500

Seattle, Washington 98019

Attn: Chief Financial Officer and General Counsel

Email: HNatha@fsci.com (CFO)

	 	 	 

	 	 	CBellavia@fsci.com (General Counsel)

	 	 	 

	 	 	Copy to:

	 	 	 

	 	 	Perkins Coie LLP

10885 N.E. Fourth Street, Suite 700

Bellevue, Washington 98004-5579

Attn: Craig H. Shrontz

Email: CShrontz@perkinscoie.com

	 	 	 

	Hines:
	 	     

     

Attn:       

Copy to:

     

     

Attn:       

Any notice will be deemed to have been given, if personally delivered, when delivered, and if
delivered by overnight courier service, one (1) business day after deposit with the courier
service, and if mailed, three (3) business days after deposit at any post office in the United
States. The Parties shall have the right to change their respective addresses or contact persons
for notice upon delivering notice to the other Party hereto in accordance with this Section 2.5.

3. Entire Agreement. This Reimbursement Agreement constitutes the entire agreement between
the Parties with respect to the subject matters described herein, and supersedes all prior
agreements and understandings between the Parties related to such subject matters. This
Reimbursement Agreement may be amended or modified only by a written instrument executed by both of
the Parties.

4. Attorney’s Fees. In the event of any dispute between the Parties in connection with this
Reimbursement Agreement, the prevailing Party shall recover its reasonable costs and attorneys’
fees actually incurred. The Parties covenant and agree that they intend by this Section 4 to
compensate for attorneys’ fees actually incurred by the prevailing Party to the particular
attorneys involved at such attorneys’ then normal hourly rates and that this Section 4 shall
constitute a request to the court that such rate or rates be deemed reasonable.

5. Governing Law; Venue. This Reimbursement Agreement shall be construed and enforced in
accordance with the laws of the State of Washington. Venue for any legal action shall lie in King
County, Washington.

6. Counterparts. This Reimbursement Agreement may be executed in any number of counterparts,
each of which will be deemed an original for all purposes and all counterparts will collectively
constitute one Reimbursement Agreement. To facilitate execution hereof, facsimile transmission or
transmission by electronic mail of any signed original shall be the same as delivery of an
original. At the request of either Party, the other Party shall confirm the transmission of any
signatures transmitted by facsimile or electronic mail by delivering an original to the requesting
Party.

IN WITNESS WHEREOF, the Parties have duly executed this Reimbursement Agreement as of the date
first above written.

FISHER:

Fisher Communications, Inc.,

a Washington corporation

By:

Name:

Its:

HINES:

Hines Global REIT 100/140 Fourth Ave LLC,

a Delaware limited liability company

By:

Name:

Its:

7

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