Document:

Exhibit 10.1

EXHIBIT 10.1

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

7600 Wisconsin Avenue, 11th Floor

Bethesda, Maryland 20814

Dated as of: October 27, 2010

KeyBank National Association,

as Administrative Agent

127 Public Square

Cleveland, OH 44114

Attention: John C. Scott

	 	 	 	 
	 	Re:	 	Amendment No. 2 to Second Amended and Restated Revolving Credit Agreement

Ladies and Gentlemen:

We refer to the Second Amended and Restated Revolving Credit Agreement dated as of December
29, 2009 (as amended by Amendment No. 1 dated May 14, 2010 and as further modified by the
Commitment Increase Agreement, dated June 1, 2010, and as in effect from time to time, the
“Credit Agreement”), by and among FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP, a
Delaware limited partnership, and certain of its Wholly-owned Subsidiaries (collectively, the
“Borrowers”), KEYBANK NATIONAL ASSOCIATION and the other lending institutions which are
parties thereto (individually, a “Lender” and collectively, the “Lenders”), KEYBANK
NATIONAL ASSOCIATION, as administrative agent for itself and each other Lender (the
“Agent”) and certain other parties. Capitalized terms used in this letter of agreement
(this “Amendment”) which are not defined herein, but which are defined in the Credit
Agreement, shall have the same meanings herein as therein, as the context so requires.

We have requested the Lenders (i) to make certain amendments to the Credit Agreement,
including that the covenant relating to Restrictions on Indebtedness be amended to permit the
Borrowers to incur unsecured Indebtedness subject to certain conditions and (ii) to provide certain
consents under the Credit Agreement, including that the Borrowers be permitted to make a minority
investment, as more fully described in Annex 1 (the “950 F Street Investment”), and you
have advised us that the Lenders are prepared and would be pleased to make the amendments and
provide the consents so requested by us on the condition that we join in this Amendment.

 

 

 

Accordingly, in consideration of these premises, the promises, mutual covenants and agreements
contained in this Amendment, and fully intending to be legally bound by this Amendment, we hereby
agree as follows:

ARTICLE I

AMENDMENTS TO CREDIT AGREEMENT

Effective as of October 27, 2010 (the “Amendment Date”), and subject to the
fulfillment of the conditions contained in Article III of this Amendment, the Credit Agreement is
amended in each of the following respects:

(a) The term “Loan Documents” shall, wherever used in the Credit Agreement or any of the other
Loan Documents, be deemed to also mean and include this Amendment.

(b) Clause (iii) of the proviso contained in Section 9.1(f) of the Credit Agreement is amended
to read in its entirety as follows:

“(iii) such Indebtedness, in the aggregate, does not exceed forty percent (40%) of
Consolidated Gross Asset Value (it being acknowledged, for the avoidance of doubt, that the
outstanding Indebtedness under the 2007 Term Loan and the 2008 Term Loan shall count against the
fifteen percent (15%) basket referred to in clause (i) above)”

(c) Section 9.1 of the Credit Agreement is further amended (x) by inserting a new clause (i)
immediately following clause (h) thereof (and by deleting the word “and” at the end of clause (g)
and inserting “; and” at the end of clause (h) in place of the period) and (y) by inserting the
following sentence after such new clause (i):

“(i) unsecured Indebtedness of the Borrower (including subsidiary guarantees by any
Subsidiary of FPLP) and unsecured guarantees by the Trust with respect to such unsecured
Indebtedness, provided that (i) such Indebtedness shall at all times remain
unsecured in all respects (including, for the avoidance of doubt, that the Equity Interests
of FPLP or any other Borrower shall not be pledged as security for any such Indebtedness),
(ii) both before and immediately after giving effect to any such unsecured Indebtedness, no
Default or Event of Default has occurred or is continuing, (iii) prior to incurring any
such unsecured Indebtedness, the Borrower has provided the Agent with a certificate in the
form of Exhibit C-2 evidencing compliance with each of the financial covenants set
forth in §10 of the Credit Agreement on a pro forma basis immediately after
giving effect to such unsecured Indebtedness, and (iv) such unsecured Indebtedness shall
not be in the nature of a revolving credit facility.

For the avoidance of doubt, the 2007 Term Loan and the 2008 Term Loan are also permitted
Indebtedness under this §9.1.”

 

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(d) Section 9.2(ix) of the Credit Agreement is amended by inserting the following new
parenthetical at the end thereof (before the period): “(other than the unsecured Indebtedness
permitted under clause (i) of §9.1)”.

ARTICLE II

CONSENT TO 950 F STREET INVESTMENT

As more particularly described in Annex 1 attached hereto, FPLP, through a Subsidiary, intends
to aquire a preferred equity interest in Jemal LLC (as defined in Annex 1). Jemal LLC is the sole
managing member of a special purpose limited liability company (“SPE”) that owns the office
building located at 950 F Street, NW, Washington, DC (the “F Street Office Building”). The
950 F Street Investment will be made substantially on the terms outlined by the Borrowers in Annex
1. In addition, the 950 F Street Investment will, in accordance with GAAP, be treated as
Indebtedness by the Borrowers, and accordingly, the Borrowers have requested that for purposes of
the Credit Agreement, including the financial covenants and related definitions contained therein,
the 950 F Street Investment be treated as an acquisition of Indebtedness and accounted for at its
cost basis (similar to the treatment of an acquisition of a Mortgage Note) and not be treated as an
Investment in a Partially-Owned Entity (the “Cost Basis Treatment”).

The Borrowers have requested that the Lenders consent to (i) the 950 F Street Investment for
purposes of the Credit Agreement, including Section 9.3 thereof, (ii) the Cost Basis Treatment for
the 950 F Street Investment and (iii) the use of proceeds of the Loans in order to make the 950 F
Street Investment.

The Lenders hereby consent to (x) the 950 F Street Investment, (y) the Cost Basis Treatment
for the 950 F Street Investment and (z) the use of proceeds of the Loans to make the 950 F Street
Investment, subject in each case to the following conditions: (i) at the time of the 950 F Street
Investment and after giving effect thereto (and after giving effect to this consent), no Default or
Event of Default shall have occurred or be continuing, (ii) the F Street Office Building shall at
all times be a Permitted Property, (iii) the 950 F Street Investment be made on terms substantially
consistent with the terms outlined in Annex 1, (iv) the Cost Basis Treatment for the 950 F Street
Investment is permitted under GAAP, (v) after giving effect to the Cost Basis Treatment for the
950 F Street Investment, the Borrowers are in compliance with Section 9.3(h) of the Credit
Agreement (it being agreed that, for so long as it remains outstanding, the 950 F Street Investment
shall be deemed to be a “Mortgage Note” for purposes of determining compliance with Section 9.3(h)
of the Credit Agreement), (vi) any Indebtedness to which the F Street Office Building, the SPE or
Jemal LLC is subject is and remains Without Recourse to FPLP or any of its Subsidiaries and neither
FPLP nor any of its Subsidiaries pledges any of its respective assets or properties in support of
any such Indebtedness, and (vii) FPLP delivering to the Agent, at its request, copies of each of
the agreements and
documents evidencing the 950 F Street Investment and the transactions relating thereto
(including, without limitation, operating agreements and loan documents of the SPE).

 

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ARTICLE III

CONDITIONS PRECEDENT TO AMENDMENT AND CONSENT

The Lenders’ agreement herein to amend the Credit Agreement and provide the consents hereunder
as of the Amendment Date is subject to the fulfillment to the satisfaction of the Lenders of the
following conditions precedent on or prior to such date:

(a) Each of the Borrowers shall have executed and delivered (or caused to be delivered) to the
Agent a counterpart of this Amendment, which shall be in form and substance satisfactory to the
Lenders;

(b) The Guarantor shall have acknowledged and consented to the provisions of this Amendment;

(c) The Agent and the Required Lenders shall have executed this Amendment;

(d) The representations and warranties of the Borrowers set forth herein shall be true and
correct;

(e) The Borrower shall have furnished to the Agent and the Lenders a pro forma Compliance
Certificate evidencing compliance with the covenants set forth in Section 10 of the Credit
Agreement after giving effect to the 950 F Street Investment and the unsecured private placement
indebtedness currently contemplated by the Borrowers; and

(f) The Agent shall have received such other documentation and information as it may
reasonably request regarding the 950 F Street Investment, all of which shall be in form and
substance satisfactory to the Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

Each of the Borrowers and the Guarantor hereby represents and warrants to you as follows:

(a) Representations and Warranties. Each of the representations and warranties made
by the Borrowers and the Guarantor, as applicable, to the Agent and the Lenders in this Amendment,
the Credit Agreement and other Loan Documents, as applicable, was true, correct and complete when
made and is true, correct and complete
on and as of the Amendment Date with the same full force and effect as if each of such
representations and warranties had been made by the Borrowers and the Guarantor on the Amendment
Date and in this Amendment, except to the extent that such representations and warranties relate
solely to a prior date. The Borrowers hereby represent and warrant that the description of the 950
F Street Investment made herein and in Annex 1 provided by the Borrowers is accurate in all
material respects as of the date hereof.

 

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(b) No Defaults or Events of Default. No Default or Event of Default exists on the
Amendment Date, and no condition exists on the date hereof which would, with notice or the lapse of
time, or both, constitute a Default or an Event of Default under the Credit Agreement.

(c) Binding Effect of Documents. This Amendment has been duly authorized, executed
and delivered to you by each of the Borrowers and the Guarantor and is in full force and effect as
of the date hereof, and the agreements and obligations of each of the Borrowers and the Guarantor
contained herein and therein constitute the legal, valid and binding obligations of such Borrower
and Guarantor enforceable against such Borrower and Guarantor in accordance with their respective
terms.

(d) No Implied Waiver. Except as expressly set forth in this Amendment, this
Amendment shall not, by implication or otherwise, limit, impair, constitute a waiver of or
otherwise affect any rights or remedies of the Agent or the Lenders under the Credit Agreement or
the other Loan Documents, nor alter, modify, amend or in any way affect any of the terms,
obligations or covenants contained in the Credit Agreement or the Loan Documents, all of which
shall continue in full force and effect. Nothing in this Amendment shall be construed to imply any
willingness on the part of the Agent or the Lenders to grant any similar or future consent or
waiver of any of the terms and conditions of the Credit Agreement or the other Loan Documents.

ARTICLE V

MISCELLANEOUS

This Amendment may be executed in any number of counterparts, each of which when executed and
delivered shall be deemed an original, but all of which together shall constitute one instrument.
In making proof of this Amendment, it shall not be necessary to produce or account for more than
one counterpart thereof signed by each of the parties hereto. Except to the extent specifically
amended and supplemented hereby, all of the terms, conditions and the provisions of the Credit
Agreement and each of the other Loan Documents shall otherwise remain unmodified, and the Credit
Agreement and each of the other Loan Documents, as amended and supplemented by this Amendment, are
confirmed as being in full force and effect, and each of the Borrowers and the Guarantor hereby
ratifies and confirms all of its agreements and obligations contained therein, as applicable.

 

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If you are in agreement with the foregoing, please sign the form of acceptance on the enclosed
counterpart of this Amendment, whereupon this Amendment, as so accepted by you, shall become a
binding agreement between you and the undersigned.

	 	 	 	 	 
	 	Very truly yours,

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 
	 	By:  	/s/ Barry H.  Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	1400 CAVALIER, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 

	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	1441 CROSSWAYS BLVD., LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	FP ASHBURN, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

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	 	AIRPARK PLACE, LLC

 	 
	 	By:  	Airpark Place Holdings LLC
 	 
	 	 	Its Sole Member 	 
	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	FP AMMENDALE COMMERCE CENTER, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	AQUIA TWO, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 

(Signatures continued on next page)

 

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	 	CROSSWAYS II LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	FPR HOLDINGS LIMITED PARTNERSHIP

 	 
	 	By:  	FPR General Partner, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	FP DAVIS DRIVE LOT 5, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP PROPERTIES, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP PROPERTIES II, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP DIAMOND HILL, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP CAMPOSTELLA ROAD, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	GATEWAY HAMPTON ROADS, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP GATEWAY 270, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	GATEWAY MANASSAS II, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP 2550 ELLSMERE AVENUE, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP GATEWAY WEST II, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP GOLDENROD LANE, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP GREENBRIER CIRCLE, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	GTC I SECOND LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP HANOVER AB, LLC

 	 
	 	By:  	FPR Holdings Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	FPR General Partner, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	HERNDON CORPORATE CENTER, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	LINDEN II, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	LUCAS WAY HAMPTON, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP PARK CENTRAL V, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP PATRICK CENTER, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP PINE GLEN, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	RESTON BUSINESS CAMPUS, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP RIVERS BEND, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP 500 & 600 HP WAY, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP 1408 STEPHANIE WAY, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP STERLING PARK I, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

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	 	FP STERLING PARK 6, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP STERLING PARK 7, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

 

18

 

	 	 	 	 	 
	 	FP STERLING PARK LAND, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	VIRGINIA CENTER, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP WEST PARK, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

19

 

	 	 	 	 	 
	 	FP CRONRIDGE DRIVE, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP GIRARD BUSINESS CENTER, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP GIRARD PLACE, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

20

 

	 	 	 	 	 
	 	TECHCOURT, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP PARK CENTRAL I, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	FP TRIANGLE, LLC

 	 
	 	By:  	First Potomac Realty Investment Limited Partnership
 	 
	 	 	Its Sole Member 	 
	 	 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

21

 

[Consent to Amendment No. 2 to Second Amended and Restated Revolving Credit

Agreement]

CONSENT OF GUARANTOR

FIRST POTOMAC REALTY TRUST (the “Guarantor”) has guaranteed the Obligations (as
defined in the Guaranty by the Guarantor in favor of the Lenders and the Agent, dated as of
December 29, 2009 (the “Guaranty”). By executing this consent, the Guarantor hereby
absolutely and unconditionally reaffirms to the Agent and the Lenders that the Guarantor’s Guaranty
remains in full force and effect. In addition, the Guarantor hereby acknowledges and agrees to the
terms and conditions of this Amendment and Consent and the Credit Agreement and the other Loan
Documents as amended and supplemented hereby (including, without limitation, the making of the
representations and warranties and the performance of the covenants applicable to it herein or
therein).

	 	 	 	 	 
	 	GUARANTOR:

FIRST POTOMAC REALTY TRUST

 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Barry H. Bass, Executive Vice President and	 
	 	 	Chief Financial Officer 	 

 

22

 

ACCEPTED AND AGREED AS

OF THE 27 DAY OF

OCTOBER, 2010:

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

as a Lender, as Swingline Lender, and as

Administrative Agent

 	 
	 	By:  	/s/
John
C. Scott	 
	 	 	Name:  	John C. Scott 	 
	 	 	Title:  	Vice President 	 

(Signatures continue on next page)

 

23

 

	 	 	 	 	 
	 	WELLS FARGO NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Richard J. Vanderhyde	 
	 	 	Name:  	Richard J. Vanderhyde	 
	 	 	Title:  	Vice President	 

(Signatures continue on next page)

 

24

 

	 	 	 	 	 
	 	WACHOVIA BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Richard J. Vanderhyde	 
	 	 	Name:  	Richard J. Vanderhyde	 
	 	 	Title:  	Vice President	 

(Signatures continue on next page)

 

25

 

	 	 	 	 	 
	 	BANK OF MONTREAL,

as a Lender

 	 
	 	By:  	/s/ Aaron Lanski	 
	 	 	Name:  	Aaron Lanski	 
	 	 	Title:  	Director	 

(Signatures continue on next page)

 

26

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION

as Lender

 	 
	 	By:  	/s/ Benjamin Adams	 
	 	 	Name:  	Benjamin Adams	 
	 	 	Title:  	Vice President	 

(Signatures continue on next page)

 

27

 

	 	 	 	 	 
	 	CAPITAL ONE, N.A., 

(Sucessor by merger to Chevy Chase Bank) as a Lender

 
	 
	 	By:  	/s/ Frederick H. Denecke	 
	 	 	Name:  	Frederick H. Denecke	 
	 	 	Title:  	Vice President	 

(Signatures continue on next page)

 

28

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

as Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

(Signatures continue on next page)

 

29

 

	 	 	 	 	 
	 	TD BANK, N.A.

as Lender

 	 
	 	By:  	/s/ Mauricio Duran	 
	 	 	Name:  	Mauricio Duran	 
	 	 	Title:  	Vice President	 

 

30

 

ANNEX 1

FPLP, through a subsidiary, is proposing to make a preferred equity investment in a single
purpose entity limited liability company owned by Douglas Jemal (the “Jemal LLC”) and
certain of his relatives and affiliates. The Jemal LLC is the sole and managing member of
an single purpose entity limited liability company (the “Property Owner LLC”) that owns an
office building located at 950 F Street, NW, Washington, DC. The amount of the proposed
investment is twenty-five million dollars ($25,000,000), and FPLP will be entitled to a
preferred return of 12.5% per annum (17.5% in the event of a default or after seven years).
The Jemal LLC must also maintain a cash reserve account in an amount equal to 6 monthly
payments of the preferred return. The preferred interest is redeemable by the Jemal LLC at
any time after the third anniversary of issuance. Prior to that time, the preferred
interest may only be redeemed upon a sale of the property with the consent of FPLP and with
the payment of a make-whole premium. The preferred interest will become redeemable at the
option of FPLP beginning in 2018. In the event that the Property Owner LLC defaults in the
payment of any preferred return or if the Property Owner LLC defaults on its mortgage loan
in the original principal amount of One Hundred Fifty Million Dollars ($150,000,000), FPLP
will have the right to cause the Jemal LLC to redeem the common equity at 80% of fair
market value, at which time FPLP will become the sole member of the Jemal LLC. FPLP as
preferred member also will have customary major decision veto rights.

 

31

 

EXHIBIT C-2

COMPLIANCE CERTIFICATE

Reference is hereby made to that certain Second Amended and Restated Revolving Credit
Agreement dated as of December 29, 2009, among First Potomac Realty Investment Limited Partnership
(the “FPLP”) and certain other borrowers (collectively, the “Borrowers”), First Potomac Realty
Trust (“Guarantor”), KeyBank National Association, individually and as Administrative Agent, and
certain other parties (as the same may now or hereafter be amended from time to time, the “Credit
Agreement”). Unless otherwise defined herein, the terms used in this Compliance Certificate and
Schedule 1 hereto have the meanings ascribed to such terms in the Credit Agreement.

This Compliance Certificate is submitted pursuant to the following sections of the Credit
Agreement:

	 	•	 	Section 8.4(e) (accompanying financial statements)
	 
	 	•	 	Section 8.13(a) (in connection with Removal of Eligible
Unencumbered Property)
	 
	 	•	 	Section 8.13(c) (in connection with the addition of Real Estate
Asset to Unencumbered Pool)
	 
	 	•	 	Section 9.4(b) (in connection with Sales or Indebtedness Liens)
	 
	 	•	 	Section 14.1 (in connection with default cure)

The undersigned HEREBY CERTIFIES THAT:

I am the chief financial officer or accounting officer of the Borrower, and I am authorized by
each such entity to execute and deliver this Compliance Certificate on its behalf.

All of the real property comprising “Eligible Unencumbered Properties” within the meaning of
Section 1.1 of the Credit Agreement is listed on Annex 1 to Schedule 1 attached hereto.
The status of each property listed on Annex 1 has been reviewed by me and/or by employees or agents
under my immediate supervision. Based upon such review, I hereby certify that each property listed
on Annex 1:

	 	(a)	 	is a Permitted Property;

	 	(b)	 	is free and clear of any Lien, other than Liens specially
permitted to exist pursuant to Section 9.2 of the Credit Agreement;

	 	(c)	 	is not the subject of a Disqualifying Environmental Event or
Disqualifying Structural Event; and

	 	(d)	 	is wholly-owned in fee simple by the Borrower.

 

 

Accompanying this Compliance Certificate are consolidated financial statements of the
Guarantor, the Borrower and their respective Subsidiaries for the fiscal [year] [quarter] ended
_____ __ 200___ (the “Financial Statements”) prepared in accordance with GAAP (subject, in the case
of financial statements relating to the first three fiscal quarters, to year-end adjustments none
of which will be materially adverse, and to the absence of footnotes). The Financial Statements
present fairly the financial position of the Guarantor, the Borrowers and their respective
Subsidiaries as of the date thereof and the results of operations of the Guarantor, the Borrowers
and their respective Subsidiaries for the period covered thereby. The foregoing is also delivered
herewith for FPLP on a consolidated basis.

Schedule 1 hereto sets forth data and computations evidencing compliance with
Availability (separate certificate attached) and with the covenants contained in Section 10 of the
Credit Agreement and certain other calculations (the “Financial Covenants; Covenants Regarding
Eligible Unencumbered Property”) as of the relevant date of determination (the “Determination
Date”), all of which data and computations are true, complete and correct.

The activities of the Guarantor, the Borrowers and their respective Subsidiaries during the
period covered by the data and computations set forth in Schedule 1 have been reviewed by
me and/or by employees or agents under my immediate supervision. Based upon such review, during
such period, and as of the date of this Certificate, no Default or Event of Default has occurred
and is continuing, except as specifically disclosed herein or as has been previously disclosed in
writing to the Administrative Agent.

[remainder of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the undersigned has affixed his signature
below this _____ day of
_____, 200_____.

	 	 	 	 	 	 	 	 	 

	 	 	FIRST POTOMAC REALTY INVESTMENT
LIMITED PARTNERSHIP, for itself and as
agent for each other Borrower	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	First Potomac Realty Trust,

its sole general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Barry Bass	 	 
	 

	 	 	 	 	 	Senior Vice President and	 	 
	 

	 	 	 	 	 	Chief Financial OfficerExhibit 10.2

EXHIBIT
10.2

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

7600 Wisconsin Avenue, 11th Floor

Bethesda, Maryland 20814

Dated as of: October
27, 2010

KeyBank National Association,

as Administrative Agent

127 Public Square

Cleveland, OH 44114

Attention: John C. Scott

Re: Amendment No. 3 to Secured Term Loan Agreement

Ladies and Gentlemen:

We refer to the Secured Term Loan Agreement dated as of August 11, 2008 (as amended and in
effect from time to time, the “Credit Agreement”), by and among FIRST POTOMAC REALTY
INVESTMENT LIMITED PARTNERSHIP, a Delaware limited partnership (the “Borrower”), KEYBANK
NATIONAL ASSOCIATION and the other lending institutions which are parties thereto (individually, a
“Lender” and collectively, the “Lenders”), and KEYBANK NATIONAL ASSOCIATION, as
administrative agent for itself and each other Lender (the “Agent”). Capitalized terms
used in this letter of agreement (this “Amendment”) which are not defined herein, but which
are defined in the Credit Agreement, shall have the same meanings herein as therein, as the context
so requires.

We have requested the Lenders (i) to make certain amendments to the Credit Agreement,
including that the covenant relating to Restrictions on Indebtedness be amended to permit the
Borrower to incur unsecured Indebtedness subject to certain conditions and (ii) to provide certain
consents under the Credit Agreement, including that the Borrower be permitted to make a minority
investment, as more fully described in Annex 1 (the “950 F Street Investment”), and you
have advised us that the Lenders are prepared and would be pleased to make the amendments and
provide the consents so requested by us on the condition that we join in this Amendment.

 

 

 

Accordingly, in consideration of these premises, the promises, mutual covenants and agreements
contained in this Amendment, and fully intending to be legally bound by this Amendment, we hereby
agree as follows:

ARTICLE I

AMENDMENTS TO CREDIT AGREEMENT

Effective as of October
27, 2010 (the “Amendment Date”), and subject to the
fulfillment of the conditions contained in Article III of this Amendment, the Credit Agreement is
amended in each of the following respects:

(a) The term “Loan Documents” shall, wherever used in the Credit Agreement or any of the other
Loan Documents, be deemed to also mean and include this Amendment.

(b) Clause (iii) of the proviso contained in Section 9.1(f) of the Credit Agreement is amended
to read in its entirety as follows and to add the parenthetical at the end thereof:

“(iii) such Indebtedness, in the aggregate, does not exceed forty percent (40%) of
Consolidated Gross Asset Value (it being acknowledged, for the avoidance of doubt, that the
outstanding Indebtedness hereunder and under the Existing Term Loan Agreement shall count
against the fifteen percent (15%) basket referred to in clause (i) above)”.

(c) Section 9.1 of the Credit Agreement is further amended (x) by inserting a new clause (i)
immediately following clause (h) thereof (and by deleting the word “and” at the end of clause (g)
and inserting “; and” at the end of clause (h) in place of the period) and (y) by inserting the
following sentence after such new clause (i):

“(i) unsecured Indebtedness of the Borrower (including subsidiary guarantees by any
Subsidiary of FPLP) and unsecured guarantees by the Trust with respect to such unsecured
Indebtedness, provided that (i) such Indebtedness shall at all times remain
unsecured in all respects (including, for the avoidance of doubt, that the Equity Interests
of the Borrower or any Subsidiary Guarantor shall not be pledged as security for any such
Indebtedness), (ii) both before and immediately after giving effect to any such unsecured
Indebtedness, no Default or Event of Default has occurred or is continuing, (iii) prior to
incurring any such unsecured Indebtedness, the Borrower has provided the Agent with a
certificate in the form of Exhibit C-2 evidencing compliance with each of the
financial covenants set forth in §10 of the Credit Agreement on a pro forma
basis immediately after giving effect to such unsecured Indebtedness, and (iv) such
unsecured Indebtedness shall not be in the nature of a revolving credit facility.

 

2

 

ARTICLE II

CONSENT TO 950 F STREET INVESTMENT

As more particularly described in Annex 1 attached hereto, FPLP, through a Subsidiary, intends
to aquire a preferred equity interest in Jemal LLC (as defined in Annex 1). Jemal LLC is the sole
managing member of a special purpose limited liability company (“SPE”) that owns the office
building located at 950 F Street, NW, Washington, DC (the “F Street Office Building”). The
950 F Street Investment will be made substantially on the terms outlined by the Borrower in Annex
1. In addition, the 950 F Street Investment will, in accordance with GAAP, be treated as
Indebtedness by the Borrower, and accordingly, the Borrower has requested that for purposes of the
Credit Agreement, including the financial covenants and related definitions contained therein, the
950 F Street Investment be treated as an acquisition of Indebtedness and accounted for at its cost
basis (similar to the treatment of an acquisition of a Mortgage Note) and not be treated as an
Investment in a Partially-Owned Entity (the “Cost Basis Treatment”).

The Borrower has requested that the Lenders consent to (i) the 950 F Street Investment for
purposes of the Credit Agreement, including Section 9.3 thereof and (ii) the Cost Basis Treatment
for the 950 F Street.

The Lenders hereby consent to (x) the 950 F Street Investment and (y) the Cost Basis Treatment
for the 950 F Street Investment, subject in each case to the following conditions: (i) at the time
of the 950 F Street Investment and after giving effect thereto (and after giving effect to this
consent), no Default or Event of Default shall have occurred or be continuing, (ii) the F Street
Office Building shall at all times be a Permitted Property, (iii) the 950 F Street Investment be
made on terms substantially consistent with the terms outlined in Annex 1, (iv) the Cost Basis
Treatment for the 950 F Street Investment is permitted under GAAP, (v) after giving effect to the
Cost Basis Treatment for the 950 F Street Investment, the Borrowers are in compliance with Section
9.3(h) of the Credit Agreement (it being agreed that, for so long as it remains outstanding, the
950 F Street Investment shall be deemed to be a “Mortgage Note” for purposes of determining
compliance with Section 9.3(h) of the Credit Agreement), (vi) any Indebtedness to which the F
Street Office Building, the SPE or Jemal LLC is subject is and remains Without Recourse to FPLP or
any of its Subsidiaries and neither FPLP nor any of its Subsidiaries pledges any of its respective
assets or properties in support of any such Indebtedness, and (vii) FPLP delivering to the Agent,
at its request, copies of each of the agreements and documents evidencing the 950 F Street
Investment and the transactions relating thereto (including, without limitation, operating
agreements and loan documents of the SPE).

 

3

 

ARTICLE III

CONDITIONS PRECEDENT TO AMENDMENT AND CONSENT

The Lenders’ agreement herein to amend the Credit Agreement and provide the consents hereunder
as of the Amendment Date is subject to the fulfillment to the satisfaction of the Lenders of the
following conditions precedent on or prior to such date:

(a) The Borrower shall have executed and delivered (or caused to be delivered) to the Agent a
counterpart of this Amendment, which shall be in form and substance satisfactory to the Lender;

(b) Each of the Trust and the Subsidiary Guarantors (collectively, the “Guarantors”) shall
have acknowledged and consented to the provisions of this Amendment;

(c) The Agent and the Required Lenders shall have executed this Amendment;

(d) The representations and warranties of the Borrower set forth herein shall be true and
correct;

(e) The Borrower shall have furnished to the Agent and the Lenders a pro forma Compliance
Certificate evidencing compliance with the covenants set forth in Section 10 of the Credit
Agreement after giving effect to the 950 F Street Investment and the unsecured private placement
indebtedness currently contemplated by the Borrowers; and

(f) The Agent shall have received such other documentation and information as it may
reasonably request regarding the 950 F Street Investment, all of which shall be in form and
substance satisfactory to the Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

Each of the Borrower and the Guarantors hereby represents and warrants to you as follows:

(a) Representations and Warranties. Each of the representations and warranties made
by the Borrower and the Guarantors, as applicable, to the Agent and the Lenders in this Amendment,
the Credit Agreement and other Loan Documents, as applicable, was true, correct and complete when
made and is true, correct and complete on and as of the Amendment Date with the same full force and
effect as if each of such representations and warranties had been made by the Borrower and the
Guarantors on the
Amendment Date and in this Amendment, except to the extent that such representations and warranties
relate solely to a prior date. The Borrower hereby represents and warrants that the description of
the 950 F Street Investment made herein and in Annex 1 provided by the Borrower is accurate in all
material respects as of the date hereof.

 

4

 

(b) No Defaults or Events of Default. No Default or Event of Default exists on the
Amendment Date, and no condition exists on the date hereof which would, with notice or the lapse of
time, or both, constitute a Default or an Event of Default under the Credit Agreement.

(c) Binding Effect of Documents. This Amendment has been duly authorized, executed
and delivered to you by each of the Borrower and the Guarantors and is in full force and effect as
of the date hereof, and the agreements and obligations of each of the Borrower and the Guarantors
contained herein and therein constitute the legal, valid and binding obligations of such Borrower
and Guarantors enforceable against such Borrower and Guarantors in accordance with their respective
terms.

(d) No Implied Waiver. Except as expressly set forth in this Amendment, this
Amendment shall not, by implication or otherwise, limit, impair, constitute a waiver of or
otherwise affect any rights or remedies of the Agent or the Lenders under the Credit Agreement or
the other Loan Documents, nor alter, modify, amend or in any way affect any of the terms,
obligations or covenants contained in the Credit Agreement or the Loan Documents, all of which
shall continue in full force and effect. Nothing in this Amendment shall be construed to imply any
willingness on the part of the Agent or the Lenders to grant any similar or future consent or
waiver of any of the terms and conditions of the Credit Agreement or the other Loan Documents.

ARTICLE V

MISCELLANEOUS

This Amendment may be executed in any number of counterparts, each of which when executed and
delivered shall be deemed an original, but all of which together shall constitute one instrument.
In making proof of this Amendment, it shall not be necessary to produce or account for more than
one counterpart thereof signed by each of the parties hereto. Except to the extent specifically
amended and supplemented hereby, all of the terms, conditions and the provisions of the Credit
Agreement and each of the other Loan Documents shall otherwise remain unmodified, and the Credit
Agreement and each of the other Loan Documents, as amended and supplemented by this Amendment, are
confirmed as being in full force and effect, and each of the Borrower and the Guarantors hereby
ratifies and confirms all of its agreements and obligations contained therein, as applicable.

 

5

 

If you are in agreement with the foregoing, please sign the form of acceptance on the enclosed
counterpart of this Amendment, whereupon this Amendment, as so accepted by you, shall become a
binding agreement between you and the undersigned.

	 	 	 	 	 
	 	Very truly yours,

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

 	 
	 	By:  	First Potomac Realty Trust
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Name:  	Barry H. Bass 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

(Signatures continued on next page)

 

1

 

[Consent to Amendment No. 3 to Secured Term Loan Agreement]

CONSENT OF TRUST GUARANTOR

FIRST POTOMAC REALTY TRUST (the “Guarantor”) has guaranteed the Obligations (as
defined in the Guaranty by the Guarantor in favor of the Lenders and the Agent, dated as of August
11, 2008 (the “Guaranty”). By executing this consent, the Guarantor hereby absolutely and
unconditionally reaffirms to the Agent and the Lenders that the Guarantor’s Guaranty remains in
full force and effect and that the Obligations (as defined in the Guaranty). In addition, the
Guarantor hereby acknowledges and agrees to the terms and conditions of this Amendment and the
Credit Agreement as amended hereby (including, without limitation, the making of the
representations and warranties and the performance of the covenants applicable to it herein or
therein).

	 	 	 	 	 
	 	GUARANTOR:

FIRST POTOMAC REALTY TRUST

 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Barry H. Bass, Executive Vice President and
	 
	 	 	Chief Financial Officer 	 

(Signatures continued on next page)

 

 

 

[Consent to Amendment No. 3 to Secured Term Loan Agreement]

CONSENT OF SUBSIDIARY GUARANTORS

Each of the Subsidiary Guarantors (as defined in the Credit Agreement) has guaranteed the
Obligations (as defined in the Subsidiary Guaranty (as defined in the Credit Agreement. By
executing this consent, each of the Subsidiary Guarantors hereby absolutely and unconditionally
reaffirms to the Agent and the Lenders that the Subsidiary Guarantor’s Subsidiary Guaranty remains
in full force and effect and that the Obligations (as defined in the Subsidiary Guaranty). In
addition, each of the Subsidiary Guarantors hereby acknowledges and agrees to the terms and
conditions of this Amendment and the Credit Agreement as amended hereby (including, without
limitation, the making of the representations and warranties and the performance of the covenants
applicable to it herein or therein).

	 	 	 	 	 
	 	SUBSIDIARY GUARANTORS:

NORFOLK COMMERCE PARK, LLC

 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Barry H. Bass 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 
	 
	 	WINDSOR AT BATTLEFIELD, LLC

 	 
	 	By:  	/s/ Barry H. Bass
 	 
	 	 	Barry H. Bass 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 

(Signatures continue on next page)

 

 

 

ACCEPTED AND AGREED AS

OF THE 27

DAY OF

OCTOBER, 2010:

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

as a Lender and as Administrative Agent

 	 
	 	By:  	/s/
John C. Scott	 
	 	 	Name:  	John C. Scott 	 
	 	 	Title:  	Vice President 	 

(Signatures continue on next page)

 

 

 

	 	 	 	 	 
	 	WELLS FARGO NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Richard J. Vanderhype	 
	 	 	Name:  	Richard J. Vanderhype	 
	 	 	Title:  	Vice President	 

(End of Signatures)

 

 

 

ANNEX 1

FPLP, through a subsidiary, is proposing to make a preferred equity investment in a single
purpose entity limited liability company owned by Douglas Jemal (the “Jemal LLC”) and
certain of his relatives and affiliates. The Jemal LLC is the sole and managing member of
an single purpose entity limited liability company (the “Property Owner LLC”) that owns an
office building located at 950 F Street, NW, Washington, DC. The amount of the proposed
investment is twenty-five million dollars ($25,000,000), and FPLP will be entitled to a
preferred return of 12.5% per annum (17.5% in the event of a default or after seven years).
The Jemal LLC must also maintain a cash reserve account in an amount equal to 6 monthly
payments of the preferred return. The preferred interest is redeemable by the Jemal LLC at
any time after the third anniversary of issuance. Prior to that time, the preferred
interest may only be redeemed upon a sale of the property with the consent of FPLP and with
the payment of a make-whole premium. The preferred interest will become redeemable at the
option of FPLP beginning in 2018. In the event that the Property Owner LLC defaults in the
payment of any preferred return or if the Property Owner LLC defaults on its mortgage loan
in the original principal amount of One Hundred Fifty Million Dollars ($150,000,000), FPLP
will have the right to cause the Jemal LLC to redeem the common equity at 80% of fair
market value, at which time FPLP will become the sole member of the Jemal LLC. FPLP as
preferred member also will have customary major decision veto rights.

 

 

 

EXHIBIT C-2

COMPLIANCE CERTIFICATE

Reference is hereby made to that certain Secured Term Loan Agreement dated as of August 11,
2008 (as the same may now or hereafter be amended from time to time, the “Credit Agreement”) among
First Potomac Realty Investment Limited Partnership (“FPLP”), KeyBank National Association,
individually and as Administrative Agent, the other Lenders from time to time party thereto and
KeyBanc Capital Markets, as Sole Lead Arranger and Sole Book Manager. Unless otherwise defined
herein, the terms used in this Compliance Certificate and Schedule 1 hereto have the
meanings ascribed to such terms in the Credit Agreement.

This Compliance Certificate is submitted pursuant to the following sections of the Credit
Agreement:

	 	•	 	Section 8.4(e) (in connection with delivery of quarterly or annual
financial statements)
	 
	 	•	 	Section 9.4(b) (in connection with Sales or Indebtedness Liens)
	 
	 	•	 	Section 14.1 (in connection with default cure)

The undersigned HEREBY CERTIFIES THAT:

I am the chief financial officer or accounting officer of the Borrower, and I am authorized by
each such entity to execute and deliver this Compliance Certificate on its behalf.

Accompanying this Compliance Certificate are consolidated financial statements of the Borrower
and its Subsidiaries for the fiscal [year]
[quarter] ended _____ __ 201___ (the “Financial
Statements”) prepared in accordance with GAAP (subject, in the case of financial statements
relating to the first three fiscal quarters, to year-end adjustments none of which will be
materially adverse, and to the absence of footnotes). The Financial Statements present fairly the
financial position of the Borrower and its Subsidiaries as of the date thereof and the results of
operations of the Borrower and its Subsidiaries for the period covered thereby. The foregoing is
also delivered herewith for FPLP on a consolidated basis.

Schedule 1 hereto sets forth data and computations evidencing compliance with the
covenants contained in Section 10 of the Credit Agreement as of the relevant date of determination
(the “Determination Date”), all of which data and computations are true, complete and correct.

The activities of the Borrower and its Subsidiaries during the period covered by the data and
computations set forth in Schedule 1 have been reviewed by me and/or by employees or agents
under my immediate supervision. Based upon such review, during such period, and as of the date of
this Certificate, no Default or Event of Default has occurred and is continuing [, except as
specifically disclosed herein or as has been previously disclosed in writing to the Administrative
Agent].

[remainder of page intentionally left blank]

 

 

 

IN WITNESS WHEREOF, the undersigned has affixed his signature below
this _____ day of
_____, 201_____.

	 	 	 	 	 	 	 	 	 

	 	 	FIRST POTOMAC REALTY INVESTMENT
LIMITED PARTNERSHIP, for itself and as
agent for each Subsidiary Guarantor	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	First Potomac Realty Trust,

its sole general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Barry Bass

Senior Vice President and	 	 
	 

	 	 	 	 	 	Chief Financial Officer

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