Document:

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                                                                   EXHIBIT 10.10

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                        AMENDED, RESTATED AND REPLACEMENT
                                 LEASE AGREEMENT

                          Dated as of December 31, 1999

                                     between

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
                                not individually,
                         but solely as the Owner Trustee
                    under the RFMD Real Estate Trust 1999-1,
                                    as Lessor

                                       and

                             RF MICRO DEVICES, INC.,
                                    as Lessee

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This Lease Agreement is subject to a security interest in favor of First Union
National Bank, as the agent for the Lenders and respecting the Security
Documents, as the agent for the Lenders and the Holders, to the extent of their
interests (the "Agent") under an Amended, Restated and Replacement Security
Agreement dated as of December 31, 1999, between First Security Bank, National
Association, not individually, but solely as the Owner Trustee under the RFMD
Real Estate Trust 1999-1 and the Agent, as amended, modified, extended,
supplemented, restated and/or replaced from time to time in accordance with the
applicable provisions thereof. This Lease Agreement has been executed in several
counterparts. To the extent, if any, that this Lease Agreement constitutes
chattel paper (as such term is defined in the Uniform Commercial Code as in
effect in any applicable jurisdiction), no security interest in this Lease
Agreement may be created through the transfer or possession of any counterpart
other than the original counterpart containing the receipt therefor executed by
the Agent on the signature page hereof.

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                                TABLE OF CONTENTS

ARTICLE I......................................................................1
         1.1 Definitions.......................................................1
         1.2 Interpretation....................................................2
ARTICLE II.....................................................................2
         2.1 Property..........................................................2
         2.2 Lease Term........................................................2
         2.3 Title.............................................................2
         2.4 Lease Supplements.................................................2
ARTICLE III....................................................................3
         3.1 Rent..............................................................3
         3.2 Payment of Basic Rent.............................................3
         3.3 Supplemental Rent.................................................3
         3.4 Performance on a Non-Business Day.................................4
         3.5 Rent Payment Provisions...........................................4
ARTICLE IV.....................................................................4
         4.1 Taxes; Utility Charges............................................4
ARTICLE V......................................................................5
         5.1 Quiet Enjoyment...................................................5
ARTICLE VI.....................................................................5
         6.1 Net Lease.........................................................5
         6.2 No Termination or Abatement.......................................6
ARTICLE VII....................................................................6
         7.1 Ownership of the Properties.......................................6
ARTICLE VIII...................................................................7
         8.1 Condition of the Properties.......................................7
         8.2 Possession and Use of the Properties..............................8
         8.3 Integrated Properties.............................................9
ARTICLE IX....................................................................10
         9.1 Compliance With Legal Requirements, Insurance Requirements and
         Manufacturer's Specifications and Standards..........................10
ARTICLE X.....................................................................10
         10.1 Maintenance and Repair; Return..................................10
         10.2 Environmental Inspection........................................13
ARTICLE XI....................................................................14
         11.1 Modifications...................................................14
ARTICLE XII...................................................................15
         12.1 Warranty of Title...............................................15
ARTICLE XIII..................................................................16
         13.1 Permitted Contests Other Than in Respect of Indemnities.........16
         13.2 Impositions, Utility Charges, Other Matters; Compliance
         with Legal Requirements..............................................16
ARTICLE XIV...................................................................16
         14.1 Public Liability and Workers'Compensation Insurance.............16
         14.2 Permanent Hazard and Other Insurance............................17

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         14.3 Coverage........................................................18
ARTICLE XV....................................................................19
         15.1 Casualty and Condemnation.......................................19
         15.2 Environmental Matters...........................................21
         15.3 Notice of Environmental Matters.................................22
ARTICLE XVI...................................................................22
         16.1 Termination Upon Certain Events.................................22
         16.2 Procedures......................................................22
ARTICLE XVII..................................................................22
         17.1 Lease Events of Default.........................................22
         17.2 Surrender of Possession.........................................26
         17.3 Reletting.......................................................26
         17.4 Damages.........................................................26
         17.5 Power of Sale...................................................27
         17.6 Final Liquidated Damages........................................27
         17.7 Environmental Costs.............................................28
         17.8 Waiver of Certain Rights........................................28
         17.9 Assignment of Rights Under Contracts............................28
         17.10 Remedies Cumulative............................................29
ARTICLE XVIII.................................................................29
         18.1 Lessor's Right to Cure Lessee's Lease Defaults..................29
ARTICLE XIX...................................................................29
         19.1 Provisions Relating to Lessee's Exercise of its Purchase
         Option...............................................................29
         19.2 No Purchase or Termination With Respect to Less than All of
         a Property...........................................................29
ARTICLE XX....................................................................30
         20.1 Purchase Option or Sale Option-General Provisions...............30
         20.2 Lessee Purchase Option..........................................30
         20.3 Third Party Sale Option.........................................31
ARTICLE XXI...................................................................32
         21.1 [Intentionally Reserved]........................................32
ARTICLE XXII..................................................................32
         22.1 Sale Procedure..................................................32
         22.2 Application of Proceeds of Sale.................................34
         22.3 Indemnity for Excessive Wear....................................35
         22.4 Appraisal Procedure.............................................35
         22.5 Certain Obligations Continue....................................35
ARTICLE XXIII.................................................................36
         23.1 Holding Over....................................................36
ARTICLE XXIV..................................................................36
         24.1 Risk of Loss....................................................36
ARTICLE XXV...................................................................37
         25.1 Assignment......................................................37
         25.2 Subleases.......................................................37
ARTICLE XXVI..................................................................38
         26.1 No Waiver.......................................................38

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ARTICLE XXVII.................................................................38
         27.1 Acceptance of Surrender.........................................38
         27.2 No Merger of Title..............................................38
ARTICLE XXVIII................................................................38
         28.1 [Intentionally Reserved]........................................38
ARTICLE XXIX..................................................................38
         29.1 Notices.........................................................38
ARTICLE XXX...................................................................39
         30.1 Miscellaneous...................................................39
         30.2 Amendments and Modifications....................................39
         30.3 Successors and Assigns..........................................39
         30.4 Headings and Table of Contents..................................39
         30.5 Counterparts....................................................39
         30.6 GOVERNING LAW...................................................39
         30.7 Calculation of Rent.............................................39
         30.8 Memoranda of Lease and Lease Supplements........................40
         30.9 Allocations between the Lenders and the Holders.................40
         30.10 Limitations on Recourse........................................40
         30.11 WAIVERS OF JURY TRIAL..........................................40
         30.12 Exercise of Lessor Rights......................................40
         30.13 SUBMISSION TO JURISDICTION; VENUE; ARBITRATION.................41
         30.14 USURY SAVINGS PROVISION........................................41

EXHIBITS
--------

EXHIBIT A      -      Lease Supplement No. ____
EXHIBIT B      -      Memorandum of Lease and Lease Supplement No. ____

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                        AMENDED, RESTATED AND REPLACEMENT
                                 LEASE AGREEMENT

         THIS AMENDED, RESTATED AND REPLACEMENT LEASE AGREEMENT dated as of
December 31, 1999 (as amended, modified, extended, supplemented, restated and/or
replaced from time to time, this "Lease") is between FIRST SECURITY BANK,
NATIONAL ASSOCIATION, a national banking association, having its principal
office at 79 South Main Street, Salt Lake City, Utah 84111, not individually,
but solely as the Owner Trustee under the RFMD Real Estate Trust 1999-1, as
lessor (the "Lessor"), and RF MICRO DEVICES, INC., a North Carolina corporation,
having its principal place of business at 7628 Thorndike Road, Greensboro, North
Carolina 27409-9421, as lessee (the "Lessee").

                              W I T N E S S E T H:

         A. WHEREAS, subject to the terms and conditions of the Participation
Agreement and the Agency Agreement, Lessor will (i) purchase or ground lease
various parcels of real property, some of which will (or may) have existing
Improvements thereon, from one (1) or more third parties designated by Lessee
and (ii) fund the acquisition, installation, testing, use, development,
construction, operation, maintenance, repair, refurbishment and restoration of
the Properties by the Construction Agent; and

         B. WHEREAS, the Term shall commence with respect to each Property upon
the Commencement Date with respect thereto; Basic Rent with respect thereto
shall not be payable until the applicable Rent Commencement Date; and

         C. WHEREAS, Lessor desires to lease to Lessee, and Lessee desires to
lease from Lessor, each Property;

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

                                    ARTICLE I

         1.1 DEFINITIONS.

         For purposes of this Lease, capitalized terms used in this Lease and
not otherwise defined herein shall have the meanings assigned to them in
Appendix A to that certain Amended, Restated and Replacement Participation
Agreement dated as of December 31, 1999 (as amended, modified, extended,
supplemented, restated and/or replaced from time to time in accordance with the
applicable provisions thereof, the "Participation Agreement") among Lessee,
Lessor, the various banks and other lending institutions which are parties
thereto from time to time, as the

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Holders, the various banks and other lending institutions which are parties
thereto from time to time, as the Lenders, and First Union National Bank, as
agent for the Lenders and respecting the Security Documents, as the agent for
the Lenders and the Holders, to the extent of their interests. Unless otherwise
indicated, references in this Lease to articles, sections, paragraphs, clauses,
appendices, schedules and exhibits are to the same contained in this Lease.

         1.2 INTERPRETATION.

         The rules of usage set forth in Appendix A to the Participation
Agreement shall apply to this Lease.

                                   ARTICLE II

         2.1 PROPERTY.

         Subject to the terms and conditions hereinafter set forth and contained
in the respective Lease Supplement relating to each Property, Lessor hereby
leases to Lessee and Lessee hereby leases from Lessor, each Property.

         2.2 LEASE TERM.

         The term of this Lease with respect to each Property (the "Term") shall
begin upon the earlier of (i) the Completion Date for such Property or (ii) the
date any Agency Event of Default shall occur (in each case the "Commencement
Date") and shall end on November 13, 2004, unless the Term is earlier
terminated. Notwithstanding the foregoing, Lessee shall not be obligated to pay
Basic Rent until the Rent Commencement Date with respect to such Property.

         2.3 TITLE.

         Each Property is leased to Lessee without any representation or
warranty, express or implied, by Lessor and subject to the rights of parties in
possession (if any), the existing state of title (including without limitation
the Permitted Liens) and all applicable Legal Requirements. Lessee shall in no
event have any recourse against Lessor for any defect in Lessor's title to any
Property or any interest of Lessee therein other than for Lessor Liens.

         2.4 LEASE SUPPLEMENTS.

         On or prior to each Commencement Date, Lessee and Lessor shall each
execute and deliver a Lease Supplement for the Property to be leased effective
as of such Commencement Date in substantially the form of Exhibit A hereto.

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                                   ARTICLE III

         3.1 RENT.

                  (a) Lessee shall pay Basic Rent in arrears on each Payment
         Date, and on any date on which this Lease shall terminate with respect
         to any or all Properties during the Term; provided, however, with
         respect to each individual Property, Lessee shall have no obligation to
         pay Basic Rent with respect to such Property until the Rent
         Commencement Date with respect to such Property (notwithstanding that
         Basic Rent for such Property shall accrue from and including the
         Scheduled Interest Payment Date immediately preceding such Rent
         Commencement Date).

                  (b) Basic Rent shall be due and payable in lawful money of the
         United States and shall be paid by wire transfer of immediately
         available funds on the due date therefor (or within the applicable
         grace period) to such account or accounts at such bank or banks as
         Lessor shall from time to time direct.

                  (c) Lessee's inability or failure to take possession of all or
         any portion of any Property when delivered by Lessor, whether or not
         attributable to any act or omission of Lessor, the Construction Agent,
         Lessee or any other Person or for any other reason whatsoever, shall
         not delay or otherwise affect Lessee's obligation to pay Rent for such
         Property in accordance with the terms of this Lease.

                  (d) Lessee shall make all payments of Rent prior to 12:00
         Noon, New York time, on the applicable date for payment of such amount.

         3.2 PAYMENT OF BASIC RENT.

         Basic Rent shall be paid absolutely net to Lessor or its designee, so
that this Lease shall yield to Lessor the full amount thereof, without setoff,
deduction or reduction.

         3.3 SUPPLEMENTAL RENT.

         Lessee shall pay to the Person entitled thereto any and all
Supplemental Rent when and as the same shall become due and payable, and if
Lessee fails to pay any Supplemental Rent within three (3) days after the same
is due, Lessor shall have all rights, powers and remedies provided for herein or
by law or equity or otherwise in the case of nonpayment of Basic Rent. All such
payments of Supplemental Rent shall be in the full amount thereof, without
setoff, deduction or reduction. Lessee shall pay to the appropriate Person, as
Supplemental Rent due and owing to such Person, among other things, on demand,
(a) any and all payment obligations (except for amounts payable as Basic Rent)
owing from time to time under the Operative Agreements by any Person to the
Agent, any Lender, any Holder or any other Person, (b) interest at the
applicable Overdue Rate on any installment of Basic Rent not paid when due
(subject to the applicable grace period) for the period for which the same shall
be overdue and on any payment of Supplemental Rent not paid when due or demanded
by the appropriate Person (subject to any

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applicable grace period) for the period from the due date or the date of any
such demand, as the case may be, until the same shall be paid and (c) amounts
referenced as Supplemental Rent obligations pursuant to Section 8.3 of the
Participation Agreement. It shall be an additional Supplemental Rent obligation
of Lessee to pay to the appropriate Person all rent and other amounts when such
become due and owing from time to time under each Ground Lease and without the
necessity of any notice from Lessor with regard thereto. The expiration or other
termination of Lessee's obligations to pay Basic Rent hereunder shall not limit
or modify the obligations of Lessee with respect to Supplemental Rent. Unless
expressly provided otherwise in this Lease, in the event of any failure on the
part of Lessee to pay and discharge any Supplemental Rent as and when due,
Lessee shall also promptly pay and discharge any fine, penalty, interest or cost
which may be assessed or added for nonpayment or late payment of such
Supplemental Rent, all of which shall also constitute Supplemental Rent.

         3.4 PERFORMANCE ON A NON-BUSINESS DAY.

         If any Basic Rent is required hereunder on a day that is not a Business
Day, then such Basic Rent shall be due on the corresponding Scheduled Interest
Payment Date or the date any amounts specified in Schedule 1 to the
Participation Agreement are due, as the case may be. If any Supplemental Rent is
required hereunder on a day that is not a Business Day, then such Supplemental
Rent shall be due on the next succeeding Business Day.

         3.5 RENT PAYMENT PROVISIONS.

         Lessee shall make payment of all Basic Rent and Supplemental Rent when
due (subject to the applicable grace periods) regardless of whether any of the
Operative Agreements pursuant to which same is calculated and is owing shall
have been rejected, avoided or disavowed in any bankruptcy or insolvency
proceeding involving any of the parties to any of the Operative Agreements. Such
provisions of such Operative Agreements and their related definitions are
incorporated herein by reference and shall survive any termination, amendment or
rejection of any such Operative Agreements.

                                   ARTICLE IV

         4.1 TAXES; UTILITY CHARGES.

         Lessee shall pay or cause to be paid all Impositions with respect to
the Properties and/or the use, occupancy, operation, repair, access, maintenance
or operation thereof and all charges for electricity, power, gas, oil, water,
telephone, sanitary sewer service and all other rents, utilities and operating
expenses of any kind or type used in or on any Property and related real
property during the Term. Upon Lessor's request, Lessee shall provide from time
to time Lessor with evidence of all such payments referenced in the foregoing
sentence. Lessee shall be entitled to receive any credit or refund with respect
to any Imposition or utility charge paid by Lessee. Unless an Event of Default
shall have occurred and be continuing, the amount of any credit or refund
received by Lessor on account of any Imposition or utility charge paid by
Lessee, net of

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the costs and expenses incurred by Lessor in obtaining such credit or refund,
shall be promptly paid over to Lessee. All charges for Impositions or utilities
imposed with respect to any Property for a period during which this Lease
expires or terminates shall be adjusted and prorated on a daily basis between
Lessor and Lessee, and each party shall pay or reimburse the other for such
party's pro rata share thereof.

                                    ARTICLE V

         5.1 QUIET ENJOYMENT.

         Subject to the rights of Lessor contained in Sections 17.2, 17.3 and
20.3 and the other terms of this Lease and the other Operative Agreements and so
long as no Event of Default shall have occurred and be continuing, Lessee shall
peaceably and quietly have, hold and enjoy each Property for the applicable
Term, free of any claim or other action by Lessor or anyone rightfully claiming
by, through or under Lessor (other than Lessee) with respect to any matters
arising from and after the applicable Commencement Date.

                                   ARTICLE VI

         6.1 NET LEASE.

         This Lease shall constitute a net lease, and the obligations of Lessee
hereunder are absolute and unconditional. Lessee shall pay all operating
expenses arising out of the use, operation and/or occupancy of each Property.
Any present or future law to the contrary notwithstanding, this Lease shall not
terminate, nor shall Lessee be entitled to any abatement, suspension, deferment,
reduction, setoff, counterclaim, or defense with respect to the Rent, nor shall
the obligations of Lessee hereunder be affected (except as expressly herein
permitted and by performance of the obligations in connection therewith) for any
reason whatsoever, including without limitation by reason of: (a) any damage to
or destruction of any Property or any part thereof; (b) any taking of any
Property or any part thereof or interest therein by Condemnation or otherwise;
(c) any prohibition, limitation, restriction or prevention of Lessee's use,
occupancy or enjoyment of any Property or any part thereof, or any interference
with such use, occupancy or enjoyment by any Person or for any other reason; (d)
any title defect, Lien or any matter affecting title to any Property; (e) any
eviction by paramount title or otherwise; (f) any default by Lessor hereunder;
(g) any action for bankruptcy, insolvency, reorganization, liquidation,
dissolution or other proceeding relating to or affecting the Agent, any Lender,
Lessor, Lessee, any Holder or any Governmental Authority; (h) the impossibility
or illegality of performance by Lessor, Lessee or both; (i) any action of any
Governmental Authority or any other Person; (j) Lessee's acquisition of
ownership of all or part of any Property; (k) breach of any warranty or
representation with respect to any Property or any Operative Agreement; (l) any
defect in the condition, quality or fitness for use of any Property or any part
thereof; or (m) any other cause or circumstance whether similar or dissimilar to
the foregoing and whether or not Lessee shall have notice or knowledge of any of
the foregoing. The parties intend that the obligations of Lessee

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hereunder shall be covenants, agreements and obligations that are separate and
independent from any obligations of Lessor hereunder and shall continue
unaffected unless such covenants, agreements and obligations shall have been
modified or terminated in accordance with an express provision of this Lease.
Lessor and Lessee acknowledge and agree that the provisions of this Section 6.1
have been specifically reviewed and subject to negotiation.

         6.2 NO TERMINATION OR ABATEMENT.

         Lessee shall remain obligated under this Lease in accordance with its
terms and shall not take any action to terminate, rescind or avoid this Lease,
notwithstanding any action for bankruptcy, insolvency, reorganization,
liquidation, dissolution, or other proceeding affecting any Person or any
Governmental Authority, or any action with respect to this Lease or any
Operative Agreement which may be taken by any trustee, receiver or liquidator of
any Person or any Governmental Authority or by any court with respect to any
Person, or any Governmental Authority. Lessee hereby waives all right (a) to
terminate or surrender this Lease (except as permitted under the terms of the
Operative Agreements) or (b) to avail itself of any abatement, suspension,
deferment, reduction, setoff, counterclaim or defense with respect to any Rent.
Lessee shall remain obligated under this Lease in accordance with its terms and
Lessee hereby waives any and all rights now or hereafter conferred by statute or
otherwise to modify or to avoid strict compliance with its obligations under
this Lease. Notwithstanding any such statute or otherwise, Lessee shall be bound
by all of the terms and conditions contained in this Lease.

                                   ARTICLE VII

         7.1 OWNERSHIP OF THE PROPERTIES.

                  (a) Lessor and Lessee intend that (i) for financial accounting
         purposes with respect to Lessee (A) this Lease will be treated as an
         "operating lease" pursuant to Statement of Financial Accounting
         Standards No. 13, as amended, (B) Lessor will be treated as the owner
         and lessor of each Property and (C) Lessee will be treated as the
         lessee of each Property, but (ii) for federal and all state and local
         income tax purposes, bankruptcy purposes, regulatory purposes,
         commercial law and real estate purposes and all other purposes (A) this
         Lease will be treated as a financing arrangement and (B) Lessee will be
         treated as the owner of the Properties and will be entitled to all tax
         benefits ordinarily available to owners of property similar to the
         Properties for such tax purposes. Notwithstanding the foregoing,
         neither party hereto has made, or shall be deemed to have made, any
         representation or warranty as to the availability of any of the
         foregoing treatments under applicable accounting rules, tax,
         bankruptcy, regulatory, commercial or real estate law or under any
         other set of rules. Lessee shall claim the cost recovery deductions
         associated with each Property, and Lessor shall not, to the extent not
         prohibited by Law, take on its tax return a position inconsistent with
         Lessee's claim of such deductions.

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                  (b) For all purposes other than as set forth in Section
         7.1(a)(i), Lessor and Lessee intend this Lease to constitute a finance
         lease and not a true lease. In order to secure the obligations of
         Lessee now existing or hereafter arising under any and all Operative
         Agreements, Lessee hereby conveys, grants, assigns, transfers,
         hypothecates, mortgages and sets over to Lessor, for the benefit of all
         Financing Parties, a first priority security interest (but subject to
         the security interest in the assets granted by Lessee in favor of the
         Agent in accordance with the Security Agreement) in and lien on all
         right, title and interest of Lessee (now owned or hereafter acquired)
         in and to all Properties, to the extent such is personal property and
         irrevocably grants and conveys a lien and deed of trust on all right,
         title and interest of Lessee (now owned or hereafter acquired) in and
         to all Properties to the extent such is real property. Lessor and
         Lessee further intend and agree that, for the purpose of securing the
         obligations of Lessee and/or the Construction Agent now existing or
         hereafter arising under the Operative Agreements, (i) this Lease shall
         be a security agreement and financing statement within the meaning of
         Article 9 of the Uniform Commercial Code respecting each of the
         Properties and all proceeds (including without limitation insurance
         proceeds thereof) to the extent such is personal property and an
         irrevocable grant and conveyance of a lien, and deed of trust on each
         of the Properties and all proceeds (including without limitation
         insurance proceeds thereof) to the extent such is real property; (ii)
         the acquisition of title by Lessor (or to the extent applicable, a
         leasehold interest pursuant to a Ground Lease) in each Property
         referenced in Article II constitutes a grant by Lessee to Lessor of a
         security interest, lien, deed of trust and mortgage in all of Lessee's
         right, title and interest in and to each Property and all proceeds
         (including without limitation insurance proceeds thereof) of the
         conversion, voluntary or involuntary, of the foregoing into cash,
         investments, securities or other property, whether in the form of cash,
         investments, securities or other property, and an assignment of all
         rents, profits and income produced by each Property; and (iii)
         notifications to Persons holding such property, and acknowledgments,
         receipts or confirmations from financial intermediaries, bankers or
         agents (as applicable) of Lessee shall be deemed to have been given for
         the purpose of perfecting such lien, security interest, mortgage lien
         and deed of trust under applicable law. Lessee shall promptly take such
         actions as necessary (including without limitation the filing of
         Uniform Commercial Code Financing Statements, Uniform Commercial Code
         Fixture Filings and memoranda (or short forms) of this Lease and the
         various Lease Supplements) to ensure that the lien, security interest,
         mortgage lien and deed of trust in each Property and the other items
         referenced above will be deemed to be a perfected lien, security
         interest, mortgage lien and deed of trust of first priority under
         applicable law and will be maintained as such throughout the Term.

                                  ARTICLE VIII

         8.1 CONDITION OF THE PROPERTIES.

         LESSEE ACKNOWLEDGES AND AGREES THAT IT IS LEASING EACH PROPERTY "AS-IS
WHERE-IS" WITHOUT REPRESENTATION, WARRANTY OR

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COVENANT (EXPRESS OR IMPLIED) BY LESSOR (EXCEPT THAT LESSOR SHALL KEEP EACH
PROPERTY FREE AND CLEAR OF LESSOR LIENS) AND IN EACH CASE SUBJECT TO (A) THE
EXISTING STATE OF TITLE, (B) THE RIGHTS OF ANY PARTIES IN POSSESSION THEREOF (IF
ANY), (C) ANY STATE OF FACTS REGARDING ITS PHYSICAL CONDITION OR WHICH AN
ACCURATE SURVEY MIGHT SHOW, (D) ALL APPLICABLE LEGAL REQUIREMENTS AND (E)
VIOLATIONS OF LEGAL REQUIREMENTS WHICH MAY EXIST ON THE DATE HEREOF AND/OR THE
DATE OF THE APPLICABLE LEASE SUPPLEMENT. NEITHER LESSOR NOR THE AGENT NOR ANY
LENDER NOR ANY HOLDER HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY
REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR IMPLIED) (EXCEPT THAT LESSOR
SHALL KEEP EACH PROPERTY FREE AND CLEAR OF LESSOR LIENS) OR SHALL BE DEEMED TO
HAVE ANY LIABILITY WHATSOEVER AS TO THE TITLE, VALUE, HABITABILITY, USE,
CONDITION, DESIGN, OPERATION, MERCHANTABILITY OR FITNESS FOR USE OF ANY PROPERTY
(OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT
WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY PROPERTY (OR ANY PART
THEREOF), AND NEITHER LESSOR NOR THE AGENT NOR ANY LENDER NOR ANY HOLDER SHALL
BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREON OR THE FAILURE OF ANY
PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY LEGAL REQUIREMENT. LESSEE HAS
OR PRIOR TO THE COMMENCEMENT DATE WILL HAVE BEEN AFFORDED FULL OPPORTUNITY TO
INSPECT EACH PROPERTY AND THE IMPROVEMENTS THEREON (IF ANY), IS OR WILL BE
(INSOFAR AS LESSOR, THE AGENT, EACH LENDER AND EACH HOLDER ARE CONCERNED)
SATISFIED WITH THE RESULTS OF ITS INSPECTIONS AND IS ENTERING INTO THIS LEASE
SOLELY ON THE BASIS OF THE RESULTS OF ITS OWN INSPECTIONS, AND ALL RISKS
INCIDENT TO THE MATTERS DESCRIBED IN THE PRECEDING SENTENCE, AS BETWEEN LESSOR,
THE AGENT, THE LENDERS AND THE HOLDERS, ON THE ONE HAND, AND LESSEE, ON THE
OTHER HAND, ARE TO BE BORNE BY LESSEE.

         8.2 POSSESSION AND USE OF THE PROPERTIES.

                  (a) At all times during the Term with respect to each
         Property, such Property shall be a Permitted Facility and shall be used
         by Lessee in the ordinary course of its business. Lessee shall pay, or
         cause to be paid, all charges and costs required in connection with the
         use of the Properties as contemplated by this Lease. Lessee shall not
         commit or permit any waste of the Properties or any part thereof.

                  (b) The address stated in Section 29.1 of this Lease is the
         principal place of business and chief executive office of Lessee (as
         such terms are used in Section 9-103(3) of the Uniform Commercial Code
         of any applicable jurisdiction), and Lessee will provide Lessor with
         prior written notice of any change of location of its principal place
         of business or chief executive office. Regarding a particular Property,
         each Lease Supplement correctly identifies the initial location of the
         related Equipment (if any) and Improvements (if any) and contains an
         accurate legal description for the related parcel of

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         Land or a copy of the Ground Lease (if any). The Equipment and
         Improvements respecting each particular Property will be located only
         at the location identified in the applicable Lease Supplement.

                  (c) Lessee will not attach or incorporate any item of
         Equipment to or in any other item of equipment or personal property or
         to or in any real property in a manner that could give rise to the
         assertion of any Lien on such item of Equipment by reason of such
         attachment or the assertion of a claim that such item of Equipment has
         become a fixture and is subject to a Lien in favor of a third party
         that is prior to the Liens thereon created by the Operative Agreements.

                  (d) On the Commencement Date for each Property, Lessor and
         Lessee shall execute a Lease Supplement in regard to such Property
         which shall contain an Equipment Schedule that has a general
         description of the Equipment which shall comprise the Property, an
         Improvement Schedule that has a general description of the Improvements
         which shall comprise the Property and a legal description of the Land
         to be leased hereunder (or in the case of any Property subject to a
         Ground Lease to be subleased hereunder) as of such date. Each Property
         subject to a Ground Lease shall be deemed to be ground subleased from
         Lessor to Lessee as of the Commencement Date, and such ground sublease
         shall be in effect until this Lease is terminated or expires, in each
         case in accordance with the terms and provisions hereof. Lessee shall
         satisfy and perform all obligations imposed on Lessor under each Ground
         Lease. Simultaneously with the execution and delivery of each Lease
         Supplement, such Equipment, Improvements, Land, ground subleasehold
         interest, all additional Equipment and all additional Improvements
         which are financed under the Operative Agreements after the
         Commencement Date and the remainder of such Property shall be deemed to
         have been accepted by Lessee for all purposes of this Lease and to be
         subject to this Lease (but subject to all rights Lessee, Construction
         Agent or Lessor may have against vendors, manufacturers, contractors
         and other third parties with respect to any such Equipment or
         Improvements).

                  (e) At all times during the Term with respect to each
         Property, Lessee will comply with all obligations under and (to the
         extent no Event of Default exists and provided that such exercise will
         not impair the value, utility or remaining useful life of such
         Property) shall be permitted to exercise all rights and remedies under,
         all operation and easement agreements and related or similar agreements
         applicable to such Property.

         8.3 INTEGRATED PROPERTIES.

         On the Rent Commencement Date for each Property, Lessee shall, at its
sole cost and expense, cause such Property and the applicable property subject
to a Ground Lease to constitute (and for the duration of the Term shall continue
to constitute) all of the equipment, facilities, rights, other personal property
and other real property necessary or appropriate to operate, utilize, maintain
and control a Permitted Facility in a commercially reasonable manner.

                                       9

<PAGE>   14

                                   ARTICLE IX

         9.1 COMPLIANCE WITH LEGAL REQUIREMENTS, INSURANCE REQUIREMENTS AND
             MANUFACTURER'S SPECIFICATIONS AND STANDARDS.

         Subject to the terms of Article XIII relating to permitted contests,
Lessee, at its sole cost and expense, shall (a) comply with all applicable Legal
Requirements (including without limitation all Environmental Laws) and all
Insurance Requirements relating to the Properties, (b) procure, maintain and
comply with all licenses, permits, orders, approvals, consents and other
authorizations required for the acquisition, installation, testing, use,
development, construction, operation, maintenance, repair, refurbishment and
restoration of the Properties, and (c) comply with all manufacturer's
specifications and standards, including without limitation the acquisition,
installation, testing, use, development, construction, operation, maintenance,
repair, refurbishment and restoration of the Properties, whether or not
compliance therewith shall require structural or extraordinary changes in any
Property or interfere with the use and enjoyment of any Property unless the
failure to procure, maintain and comply with Legal Requirements relating to the
Properties other than Environmental Laws or such items identified in
subparagraphs (b) and (c), individually or in the aggregate, shall not and could
not reasonably be expected to have a Material Adverse Effect. Lessor agrees to
take such actions as may be reasonably requested by Lessee in connection with
the compliance by Lessee of its obligations under this Section 9.1.

                                    ARTICLE X

         10.1 MAINTENANCE AND REPAIR; RETURN.

                  (a) Lessee, at its sole cost and expense, shall maintain each
         Property in good condition, repair and working order (ordinary wear and
         tear excepted) and in the repair and condition as when originally
         delivered to Lessor and make all necessary repairs thereto and
         replacements thereof, of every kind and nature whatsoever, whether
         interior or exterior, ordinary or extraordinary, structural or
         nonstructural or foreseen or unforeseen, in each case as required by
         Section 9.1 and on a basis consistent with the operation and
         maintenance of properties or equipment comparable in type and function
         to the applicable Property, such that such Property is capable of being
         immediately utilized by a third party and in compliance with standard
         industry practice subject, however, to the provisions of Article XV
         with respect to Casualty and Condemnation.

                  (b) Lessee shall not use or locate any component of any
         Property outside of the Approved State therefor. Lessee shall not move
         or relocate any component of any Property beyond the boundaries of the
         Land (comprising part of such Property) described in the applicable
         Lease Supplement, except for the temporary removal of Equipment and
         other personal property for repair or replacement.

                                       10

<PAGE>   15

                  (c) If any component of any Property becomes worn out, lost,
         destroyed, damaged beyond repair or otherwise permanently rendered
         unfit for use, Lessee, at its own expense, will within a reasonable
         time replace such component with a replacement component which is free
         and clear of all Liens (other than Permitted Liens and Lessor Liens)
         and has a value, utility and useful life at least equal to the
         component replaced (assuming the component replaced had been maintained
         and repaired in accordance with the requirements of this Lease). All
         components which are added to any Property shall immediately become the
         property of (and title thereto shall vest in) Lessor and shall be
         deemed incorporated in such Property and subject to the terms of this
         Lease as if originally leased hereunder.

                  (d) Upon reasonable advance notice, Lessor and its agents
         shall have the right to inspect each Property and all maintenance
         records with respect thereto at any reasonable time during normal
         business hours but shall not, in the absence of an Event of Default,
         materially disrupt the business of Lessee.

                  (e) If, at any time, the aggregate appraised value of
         Properties then subject to this Lease for which the Agent has received
         an Appraisal pursuant to the terms of Section 5.3 of the Participation
         Agreement is less than twenty-five percent (25%) of the aggregate
         Property Cost at such time (the "Base Amount"), then Lessee will cause
         an additional. Appraisal or Appraisals to be immediately delivered to
         Lessor in an amount sufficient to cause such aggregate appraised value
         to equal or exceed the Base Amount. In addition, Lessee shall cause to
         be delivered to Lessor (at Lessee's sole expense) one (1) or more
         Appraisals (or reappraisals of Property) as Lessor may request if any
         one (1) of Lessor, the Agent, the Trust Company, any Lender or any
         Holder is required pursuant to any applicable Legal Requirement to
         obtain such Appraisals (or reappraisals) and upon the occurrence of any
         Event of Default.

                  (f) Lessor shall under no circumstances be required to build
         any improvements or install any equipment on any Property, make any
         repairs, replacements, alterations or renewals of any nature or
         description to any Property, make any expenditure whatsoever in
         connection with this Lease or maintain any Property in any way. Lessor
         shall not be required to maintain, repair or rebuild all or any part of
         any Property, and Lessee waives the right to (i) require Lessor to
         maintain, repair, or rebuild all or any part of any Property, or (ii)
         make repairs at the expense of Lessor pursuant to any Legal
         Requirement, Insurance Requirement, contract, agreement, covenant,
         condition or restriction at any time in effect.

                  (g) Lessee shall, upon the expiration or earlier termination
         of this Lease with respect to a Property, if Lessee shall not have
         exercised its Purchase Option with respect to such Property and
         purchased such Property, surrender such Property (i) to Lessor pursuant
         to the exercise of the applicable remedies upon the occurrence of a
         Lease Event of Default or (ii) pursuant to the second paragraph of
         Section 22.1(a) hereof, to Lessor or the third party purchaser, as the
         case may be, subject to Lessee's obligations under this

                                       11

<PAGE>   16

         Lease (including without limitation the obligations of Lessee at the
         time of such surrender under Sections 9.1, 10.1(a) through (f), 10.2,
         11.1, 12.1, 22.1 and 23.1).

                  In any event, regarding the surrender of such Property Lessee
will at its expense, dismantle, surrender and deliver possession of each item of
Equipment to Lessor at the Redelivery Location with a certificate executed by a
Responsible Officer of Lessee certifying that the item of Equipment is in the
condition required hereunder, a copy of an inventory list for each item of
Equipment, all then current plans, specifications and operating, maintenance,
and repair manuals and logs relating to each item of Equipment that have been
prepared or received by Lessee, and with respect to any item of Equipment which
qualifies for or is subject to any manufacturer's maintenance, repair or
warranty policy, to the extent reasonably available, a statement or certificate
that has been signed by an authorized representative of the manufacturer
attesting to such condition. At the time of such return to Lessor, each item of
Equipment (and each part or component thereof) shall (a) meet the original
design specifications and operating standards of such item, (b) all software
shall be the latest version available, (c) all Equipment shall operate to the
highest tolerances and specifications, (d) be in as good operating condition,
state of repair and appearance as when delivered to Lessee hereunder, ordinary
wear and tear excepted, and in the condition required pursuant to the Lease, (e)
have no missing or damaged components such that its value, utility or remaining
useful life will be reduced, (f) comply with all laws and rules referred to in
Sections 9.1, 10.1, 10.2 hereof and any other applicable provision of any
Operative Agreement, (g) have attached or affixed thereto any addition,
modification or improvement considered an accession thereto as provided in
Section 11.1 hereof and (h) have had removed therefrom in a workmanlike manner,
(i) at Lessee's option, any addition, modification or improvement which, as
provided in Section 11.1 hereof, is owned by Lessee, and (ii) any insignia or
marking permitted pursuant to Section 13 hereof, and (g) be free and clear of
all Liens, other than a Lien granted or placed thereon by the Lessor or the
Agent. With respect to any item of Equipment which has an hour meter or similar
device affixed to or relating to such Equipment, Lessee must provide evidence of
the total operating hours on such item at redelivery, as evidenced by such meter
or similar device. All operating licenses and agreements, including without
limitation all software licenses pertinent to operation of each Item of
Equipment, which are capable of being transferred, shall be fully transferable
upon the expiration of the Term to Lessor or its designee. Lessee shall transfer
all operating licenses or agreements, including without limitation all software
licenses, upon return of the item of Equipment at Lessee's cost and expense.
Each item of Equipment that qualified for or is subject to any manufacturer's
maintenance, repair or warranty policy must be properly deinstalled in a manner
consistent with such policy and in such a way that the item remains eligible for
or subject to such policy, as appropriate, and Lessee shall, to the extent
reasonably practicable, provide or shall cause a representative of the
manufacturer of such item to provide a certificate certifying that each item of
Equipment was deinstalled in a manner consistent with such policy and remains
eligible for or subject to such policy, as appropriate. All disassembly and
deinstallation of each item of Equipment shall be done in a clean-room
environment and each item of Equipment shall be decontaminated and safe for
travel pursuant to all Legal Requirements. Upon deinstallation each item of
Equipment shall be secured properly for air or overland transport. Each item of
Equipment originally delivered to Lessee, secured for shock proof and minimum
vibration travel or delivered via air ride van shall be redelivered in a similar
manner, and each other item of

                                       12

<PAGE>   17

Equipment shall be delivered in the manner in which it was delivered to Lessee
or such other manner as is customary for such item of Equipment. Lessee shall
pay for any repairs necessary to restore any item of Equipment to the condition
required by this Section 10.1. The term "ordinary wear and tear" as used herein
shall not be construed as permitting any material broken, damaged or missing
items or components of any item of Equipment. Upon redelivery, Lessee shall
provide any additional documentation reasonably requested by Lessor, at Lessee's
cost, relating to the redelivery of or Lessor's interest in each item of
Equipment.

         (h) For the purpose of delivering possession of any item of Equipment
to Lessor as above required, Lessee shall at its own cost, expense and risk
cause each such item of Equipment to be insured, including insurance during
transport, in an amount equal to or in excess of the greater of (i) the
Termination Value and (ii) the Fair Market Sales Value and in accordance with
Article XIV hereof and stored at the Redelivery Location identified therefor by
Lessor at the risk of Lessee without charge to Lessor or any Assignee for
insurance, rent or storage until all such items of Equipment have been sold,
leased or otherwise disposed of by Lessor; provided however, Lessee's
obligations under this Section 10.1(h) shall terminate with respect to each item
of Equipment on the 90th day after delivery of such item to the Redelivery
Location in the condition required by Section 10.1 hereof.

         (i) Each item of Equipment shall be deemed redelivered upon
satisfaction of the obligations and conditions set forth in Section 10.1 hereof.
Until each such item of Equipment has been returned to Lessor in the condition
and as otherwise provided in this Section 10.1, Lessee shall continue to pay
Lessor, on the same dates on which an Equipment Payment for such item was
payable during the Term thereof 125% of the Equipment Payment for such item that
was payable on the last Payment Date of the Term thereof; provided, that during
such holdover period, Lessee shall use its best efforts to secure the return of
the Equipment as required under this Section 10.1. The provision for payment
pursuant to this Section 10.1 shall not abrogate Lessor's right under this
Section 10.1 to have such Equipment returned to it hereunder.

         (j) The provisions of this Section 10.1 are essential to this Lease,
and upon application to any court of equity having jurisdiction in the premises,
Lessor shall be entitled to a decree against Lessee requiring specific
performance of the covenants of Lessee set forth in this Section 10.1.

         10.2 ENVIRONMENTAL INSPECTION.

         If Lessee has not given notice of exercise of its Purchase Option on
the Expiration Date pursuant to Section 20.1 or for whatever reason Lessee does
not purchase a Property in accordance with the terms of this Lease, then not
more than one hundred twenty (120) days nor less than sixty (60) days prior to
the Expiration Date, Lessee at its expense shall cause to be delivered to Lessor
a Phase I environmental site assessment recently prepared (no more than thirty
(30) days prior to the date of delivery) by an independent recognized
professional

                                       13

<PAGE>   18

reasonably acceptable to Lessor, and in form, scope and content reasonably
satisfactory to Lessor.

                                   ARTICLE XI

         11.1 MODIFICATIONS.

                  (a) Lessee at its sole cost and expense, at any time and from
         time to time without the consent of Lessor may make modifications,
         alterations, renovations, improvements and additions to any Property or
         any part thereof and substitutions and replacements therefor
         (collectively, "Modifications"), and Lessee shall make any and all
         Modifications required to be made pursuant to all Legal Requirements,
         Insurance Requirements and manufacturer's specifications and standards;
         provided, that: (i) no Modification shall materially impair the value,
         utility or useful life of any Property from that which existed
         immediately prior to such Modification; (ii) each Modification shall be
         done expeditiously and in a good and workmanlike manner; (iii) no
         Modification shall adversely affect the structural integrity of any
         Property; (iv) to the extent required by Section 14.2(a), Lessee shall
         maintain builders' risk insurance at all times when a Modification is
         in progress; (v) subject to the terms of Article XIII relating to
         permitted contests, Lessee shall pay all costs and expenses and
         discharge any Liens arising with respect to any Modification; (vi) each
         Modification shall comply with the requirements of this Lease
         (including without limitation Sections 8.2 and 10.1); and (vii) no
         Improvement shall be demolished or otherwise rendered unfit for use
         unless Lessee shall finance the proposed replacement Modification
         outside of this lease facility; provided, further, Lessee shall not
         make any Modification (unless required by any Legal Requirement) to the
         extent any such Modification, individually or in the aggregate, shall
         or could reasonably be expected to have a Material Adverse Effect. All
         Modifications shall immediately and without further action upon their
         incorporation into the applicable Property (1) become property of
         Lessor, (2) be subject to this Lease and (3) be titled in the name of
         Lessor. Lessee shall not remove or attempt to remove any Modification
         from any Property. Each Ground Lease for a Property shall expressly
         provide for the provisions of the foregoing sentence. Lessee, at its
         own cost and expense, will pay for the repairs of any damage to any
         Property caused by the removal or attempted removal of any
         Modification. Upon redelivery of any item of Equipment Lessee shall, if
         instructed by Lessor, remove any Modification and repair such item of
         Equipment to comply with the provisions of Section 9.1, 10.1 and any
         other applicable provisions in any Operative Agreement.

                  (b) The construction process provided for in the Agency
         Agreement is acknowledged by Lessor to be consistent with and in
         compliance with the terms and provisions of this Article XI.

                                       14

<PAGE>   19

                                   ARTICLE XII

         12.1 WARRANTY OF TITLE.

                  (a) Lessee hereby acknowledges and shall cause title in each
         Property (including without limitation all Equipment, all Improvements,
         all replacement components to each Property and all Modifications)
         immediately and without further action to vest in and become the
         property of Lessor and to be subject to the terms of this Lease
         (provided, respecting each Property subject to a Ground Lease, Lessor's
         interest therein is acknowledged to be a leasehold interest pursuant to
         such Ground Lease) from and after the date hereof or such date of
         incorporation into any Property. Lessee agrees that, subject to the
         terms of Article XIII relating to permitted contests, Lessee shall not
         directly or indirectly create or allow to remain, and shall promptly
         discharge at its sole cost and expense, any Lien, defect, attachment,
         levy, title retention agreement or claim upon any Property, any
         component thereof or any Modifications or any Lien, attachment, levy or
         claim with respect to the Rent or with respect to any amounts held by
         Lessor, the Agent, any Lender or any Holder pursuant to any Operative
         Agreement, other than Permitted Liens and Lessor Liens. Lessee shall
         promptly notify Lessor in the event it receives actual knowledge that a
         Lien other than a Permitted Lien or Lessor Lien has occurred with
         respect to a Property, the Rent or any other such amounts, and Lessee
         represents and warrants to, and covenants with, Lessor that the Liens
         in favor of Lessor and/or the Agent created by the Operative Agreements
         are (and until the Financing Parties under the Operative Agreements
         have been paid in full shall remain) first priority perfected Liens
         subject only to Permitted Liens and Lessor Liens. At all times
         subsequent to the Commencement Date respecting a Property, Lessee shall
         (i) cause a valid, perfected, first priority Lien on each applicable
         Property to be in place in favor of the Agent (for the benefit of the
         Lenders and the Holders) and (ii) file, or cause to be filed, all
         necessary documents under the applicable real property law and Article
         9 of the Uniform Commercial Code to perfect such title and Liens.

                  (b) Nothing contained in this Lease shall be construed as
         constituting the consent or request of Lessor, expressed or implied, to
         or for the performance by any contractor, mechanic, laborer,
         materialman, supplier or vendor of any labor or services or for the
         furnishing of any materials for any construction, alteration, addition,
         repair or demolition of or to any Property or any part thereof. NOTICE
         IS HEREBY GIVEN THAT LESSOR IS NOT AND SHALL NOT BE LIABLE FOR ANY
         LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO LESSEE, OR
         TO ANYONE HOLDING A PROPERTY OR ANY PART THEREOF THROUGH OR UNDER
         LESSEE, AND THAT NO MECHANIC'S OR OTHER LIENS FOR ANY SUCH LABOR,
         SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LESSOR
         IN AND TO ANY PROPERTY.

                                       15

<PAGE>   20

                                  ARTICLE XIII

         13.1 PERMITTED CONTESTS OTHER THAN IN RESPECT OF INDEMNITIES.

         Except to the extent otherwise provided for in Section 11 of the
Participation Agreement, Lessee, on its own or on Lessor's behalf but at
Lessee's sole cost and expense, may contest, by appropriate administrative or
judicial proceedings conducted in good faith and with due diligence, the amount,
validity or application, in whole or in part, of any Legal Requirement,
Imposition or utility charge payable pursuant to Section 4.1 or any Lien,
attachment, levy, encumbrance or encroachment, and Lessor agrees not to pay,
settle or otherwise compromise any such item, provided, that (a) the
commencement and continuation of such proceedings shall suspend the collection
of any such contested amount from, and suspend the enforcement thereof against,
the applicable Properties, Lessor, each Holder, the Agent and each Lender; (b)
there shall not be imposed a Lien (other than Permitted Liens and Lessor Liens)
on any Property and no part of any Property nor any Rent would be in any danger
of being sold, forfeited, lost or deferred; (c) at no time during the permitted
contest shall there be a risk of the imposition of criminal liability or
material civil liability on Lessor, any Holder, the Agent or any Lender for
failure to comply therewith; and (d) in the event that, at any time, there shall
be a material risk of extending the application of such item beyond the end of
the Term, then Lessee shall deliver to Lessor an Officer's Certificate
certifying as to the matters set forth in clauses (a), (b) and (c) of this
Section 13.1. Lessor, at Lessee's sole cost and expense, shall execute and
deliver to Lessee such authorizations and other documents as may reasonably be
required in connection with any such contest and, if reasonably requested by
Lessee, shall join as a party therein at Lessee's sole cost and expense.

         13.2 IMPOSITIONS, UTILITY CHARGES, OTHER MATTERS; COMPLIANCE WITH LEGAL
              REQUIREMENTS.

         Except with respect to Impositions, Legal Requirements, utility charges
and such other matters referenced in Section 13.1 which are the subject of
ongoing proceedings contesting the same in a manner consistent with the
requirements of Section 13.1, Lessee shall cause (a) all Impositions, utility
charges and such other matters to be timely paid, settled or compromised, as
appropriate, with respect to each Property and (b) each Property to comply with
all applicable Legal Requirements.

                                   ARTICLE XIV

         14.1 PUBLIC LIABILITY AND WORKERS' COMPENSATION INSURANCE.

         During the Term for each Property, Lessee shall procure and carry, at
Lessee's sole cost and expense, commercial general liability and umbrella
liability insurance for claims for injuries or death sustained by persons or
damage to property while on such Property or respecting the Equipment and such
other public liability coverages as are then customarily carried by similarly
situated companies conducting business similar to that conducted by Lessee. Such
insurance

                                       16

<PAGE>   21

shall be on terms and in amounts that are no less favorable than insurance
maintained by Lessee with respect to similar properties and equipment that it
owns and are then carried by similarly situated companies conducting business
similar to that conducted by Lessee, and in no event shall have a minimum
combined single limit per occurrence coverage (i) for commercial general
liability of less than $1,000,000.00 and (ii) for umbrella liability of less
than $30,000,000.00. The policies shall name Lessee as the insured and shall be
endorsed to name Lessor, the Holders, the Agent and the Lenders as additional
insureds. The policies shall also specifically provide that such policies shall
be considered primary insurance which shall apply to any loss or claim before
any contribution by any insurance which Lessor, any Holder, the Agent or any
Lender may have in force. In the operation of the Properties, Lessee shall
comply with applicable workers' compensation laws and protect Lessor, each
Holder, the Agent and each Lender against any liability under such laws.

         14.2 PERMANENT HAZARD AND OTHER INSURANCE.

                  (a) During the Term for each Property, Lessee shall keep such
         Property insured against all risk of physical loss or damage by fire
         and other risks and shall maintain builders' risk insurance during
         construction of any Improvements or Modifications in each case in
         amounts no less than the Property Cost of such Property from time to
         time and on terms that (i) are no less favorable than insurance
         covering other similar properties owned by Lessee and (ii) are then
         carried by similarly situated companies conducting business similar to
         that conducted by Lessee. The policies shall name Lessee as the insured
         and shall be endorsed to name Lessor and the Agent (on behalf of the
         Lenders and the Holders) as a named additional insured and loss payee,
         to the extent of their respective interests; provided, so long as no
         Event of Default exists, any loss payable under the insurance policies
         required by this Section for losses up to $2,000,000.00 will be paid to
         Lessee.

                  (b) If, during the Term with respect to a Property the area in
         which such Property is located is designated a "flood-prone" area
         pursuant to the Flood Disaster Protection Act of 1973, or any
         amendments or supplements thereto or is in a zone designated A or V,
         then Lessee shall comply with the National Flood Insurance Program as
         set forth in the Flood Disaster Protection Act of 1973. In addition,
         Lessee will fully comply with the requirements of the National Flood
         Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, as
         each may be amended from time to time, and with any other Legal
         Requirement, concerning flood insurance to the extent that it applies
         to any such Property. During the Term, Lessee shall, in the operation
         and use of each Property, maintain workers' compensation insurance
         consistent with that carried by similarly situated companies conducting
         business similar to that conducted by Lessee and containing minimum
         liability limits of no less than $100,000.00. In the operation of each
         Property, Lessee shall comply with workers' compensation laws
         applicable to Lessee, and protect Lessor, each Holder, the Agent and
         each Lender against any liability under such laws.

                                       17

<PAGE>   22

         14.3 COVERAGE.

                  (a) As of the date of this Lease and annually thereafter
         during the Term, Lessee shall furnish the Agent (on behalf of Lessor
         and the other beneficiaries of such insurance coverage) with
         certificates prepared by the insurers or insurance broker of Lessee
         showing the insurance required under Sections 14.1 and 14.2 to be in
         effect, naming (to the extent of their respective interests) Lessor,
         the Holders, the Agent and the Lenders as additional insureds and loss
         payees and evidencing the other requirements of this Article XIV. All
         such insurance shall be at the cost and expense of Lessee and provided
         by nationally recognized, financially sound insurance companies having
         an A+ or better rating by A.M. Best's Key Rating Guide. Lessee shall
         cause such certificates to include a provision for thirty (30) days'
         advance written notice by the insurer to the Agent (on behalf of Lessor
         and the other beneficiaries of such insurance coverage) in the event of
         cancellation or material alteration of such insurance. If an Event of
         Default has occurred and is continuing and the Agent (on behalf of
         Lessor and the other beneficiaries of such insurance coverage) so
         requests, Lessee shall deliver to the Agent (on behalf of Lessor and
         the other beneficiaries of such insurance coverage) copies of all
         insurance policies required by Sections 14.1 and 14.2.

                  (b) Lessee agrees that the insurance policy or policies
         required by Sections 14.1, 14.2(a) and 14.2(b) shall include an
         appropriate clause pursuant to which any such policy shall provide that
         it will not be invalidated should Lessee or any Contractor, as the case
         may be, waive, at any time, any or all rights of recovery against any
         party for losses covered by such policy or due to any breach of
         warranty, fraud, action, inaction or misrepresentation by Lessee or any
         Person acting on behalf of Lessee. Lessee hereby waives any and all
         such rights against Lessor, the Holders, the Agent and the Lenders to
         the extent of payments made to any such Person under any such policy.

                  (c) Neither Lessor nor Lessee shall carry separate insurance
         concurrent in kind or form or contributing in the event of loss with
         any insurance required under this Article XIV, except that Lessor may
         carry separate liability insurance at Lessor's sole cost so long as (i)
         Lessee's insurance is designated as primary and in no event excess or
         contributory to any insurance Lessor may have in force which would
         apply to a loss covered under Lessee's policy and (ii) each such
         insurance policy will not cause Lessee's insurance required under this
         Article XIV to be subject to a coinsurance exception of any kind.

                  (d) Lessee shall pay as they become due all premiums for the
         insurance required by Section 14.1 and Section 14.2, shall renew or
         replace each policy prior to the expiration date thereof or otherwise
         maintain the coverage required by such Sections without any lapse in
         coverage.

                                       18

<PAGE>   23

                                   ARTICLE XV

         15.1 CASUALTY AND CONDEMNATION.

                  (a) Subject to the provisions of the Agency Agreement and this
         Article XV and Article XVI (in the event Lessee delivers, or is
         obligated to deliver or is deemed to have delivered, a Termination
         Notice), and prior to the occurrence and continuation of a Default or
         an Event of Default, Lessee shall be entitled to receive (and Lessor
         hereby irrevocably assigns to Lessee all of Lessor's right, title and
         interest in) any condemnation proceeds, award, compensation or
         insurance proceeds under Sections 14.2(a) or 14.2(b) hereof to which
         Lessee or Lessor may become entitled by reason of their respective
         interests in a Property (i) if all or a portion of such Property is
         damaged or destroyed in whole or in part by a Casualty or (ii) if the
         use, access, occupancy, easement rights or title to such Property or
         any part thereof is the subject of a Condemnation; provided, however,
         if a Default or an Event of Default shall have occurred and be
         continuing or if such award, compensation or insurance proceeds shall
         exceed $2,000,000.00, then such award, compensation or insurance
         proceeds shall be paid directly to Lessor or, if received by Lessee,
         shall be held in trust for Lessor, and shall be paid over by Lessee to
         Lessor and held in accordance with the terms of this paragraph (a). All
         amounts held by Lessor hereunder on account of any award, compensation
         or insurance proceeds either paid directly to Lessor or turned over to
         Lessor shall be held as security for the performance of Lessee's
         obligations hereunder and under the other Operative Agreements and (i)
         to the extent no Default or Event of Default shall have occurred and be
         continuing at such time, Lessor shall pay such amounts so held by
         Lessor (A) from time to time as Lessee either restores and repairs such
         Property pursuant to Section 15.1(e) and gives Lessor reasonable
         evidence of such restoration and repair work or (b) promptly to Lessee
         upon Lessee's payment in full of the Termination Value for such
         Property pursuant to Article XVI or (ii) to the extent a Default or
         Event of Default shall have occurred and be continuing at such time,
         all amounts so held by Lessor shall be paid over to Lessee when all
         such obligations of Lessee with respect to such matters (and all other
         obligations of Lessee which should have been satisfied pursuant to the
         Operative Agreements as of such date) have been satisfied and no
         Default or Event of Default is then continuing.

                  (b) Lessee may appear in any proceeding or action to
         negotiate, prosecute, adjust or appeal any claim for any award,
         compensation or insurance payment on account of any such Casualty or
         Condemnation and shall pay all expenses thereof. At Lessee's reasonable
         request, and at Lessee's sole cost and expense, Lessor and the Agent
         shall participate in any such proceeding, action, negotiation,
         prosecution or adjustment. Lessor and Lessee agree that this Lease
         shall control the rights of Lessor and Lessee in and to any such award,
         compensation or insurance payment.

                  (c) If Lessee shall receive notice of a Casualty or a
         Condemnation of a Property or any interest therein where damage to the
         affected Property is estimated to equal or exceed fifty percent (50%)
         of the Property Cost of such Property, Lessee shall give notice thereof
         to Lessor promptly after Lessee's receipt of such notice. In the event

                                       19

<PAGE>   24

         such a Casualty or Condemnation occurs (regardless of whether Lessee
         gives notice thereof), then Lessee shall be deemed to have delivered a
         Termination Notice to Lessor and the provisions of Sections 16.1 and
         16.2 shall apply.

                  (d) In the event of a Casualty or a Condemnation (regardless
         of whether notice thereof must be given pursuant to paragraph (c)),
         this Lease shall terminate with respect to the applicable Property in
         accordance with Section 16.1 if Lessee, within thirty (30) days after
         such occurrence, delivers to Lessor a notice to such effect.

                  (e) If pursuant to this Section 15.1 this Lease shall continue
         in full force and effect following a Casualty or Condemnation with
         respect to the affected Property, Lessee shall, at its sole cost and
         expense (subject to reimbursement in accordance with Section 15.1(a))
         promptly and diligently repair any damage to the applicable Property
         caused by such Casualty or Condemnation in conformity with the
         requirements of Sections 10.1 and 11.1, using the as-built Plans and
         Specifications or manufacturer's specifications for the applicable
         Improvements, Equipment or other components of the applicable Property
         (as modified to give effect to any subsequent Modifications, any
         Condemnation affecting the applicable Property and all applicable Legal
         Requirements), so as to restore the applicable Property to the same or
         a greater remaining economic value, useful life, utility, condition,
         operation and function as existed immediately prior to such Casualty or
         Condemnation (assuming all maintenance and repair standards have been
         satisfied). In such event, title to the applicable Property shall
         remain with Lessor.

                  (f) In no event shall a Casualty or Condemnation affect
         Lessee's obligations to pay Rent pursuant to Article III unless the
         Lease is terminated and Lessee has paid all amounts then due and owing.

                  (g) Notwithstanding anything to the contrary set forth in
         Section 15.1(a) or Section 15.1(e), if during the Term with respect to
         a Property a Casualty occurs with respect to such Property or Lessee
         receives notice of a Condemnation with respect to such Property, and
         following such Casualty or Condemnation, the applicable Property cannot
         reasonably be restored, repaired or replaced on or before the day one
         hundred eighty (180) days prior to the Expiration Date or the date nine
         (9) months after the occurrence of such Casualty or Condemnation (if
         such Casualty or Condemnation occurs during the Term) to the same or a
         greater remaining economic value, useful life, utility, condition,
         operation and function as existed immediately prior to such Casualty or
         Condemnation (assuming all maintenance and repair standards have been
         satisfied) or on or before such day such Property is not in fact so
         restored, repaired or replaced, then Lessee shall be required to
         exercise its Purchase Option for such Property on the next Payment Date
         (notwithstanding the limits on such exercise contained in Section 20.2)
         and pay Lessor the Termination Value for such Property; provided, if
         any Default or Event of Default has occurred and is continuing, Lessee
         shall also promptly (and in any event within three (3) Business Days)
         pay Lessor any award, compensation or insurance proceeds received on
         account of any Casualty or Condemnation with respect to any Property;
         provided, further, that if no Default or Event of Default has occurred
         and is continuing, any Excess

                                       20

<PAGE>   25

         Proceeds shall be paid to Lessee. If a Default or an Event of Default
         has occurred and is continuing and any Loans, Holder Advances or other
         amounts are owing with respect thereto, then any Excess Proceeds (to
         the extent of any such Loans, Holder Advances or other amounts owing
         with respect thereto) shall be paid to Lessor, held as security for the
         performance of Lessee's obligations hereunder and under the other
         Operative Agreements and applied to such obligations upon the exercise
         of remedies in connection with the occurrence of an Event of Default,
         with the remainder of such Excess Proceeds in excess of such Loans,
         Holder Advances and other amounts owing with respect thereto being
         distributed to the Lessee.

         15.2 ENVIRONMENTAL MATTERS.

         Within five (5) Business Days of the date any Responsible Officer of
Lessee initially had actual knowledge or should have known of the presence of
Hazardous Substances in any portion of any Property or Properties in
concentrations and conditions that constitute an Environmental Violation and
which, in the reasonable opinion of Lessee, the cost to undertake any legally
required response, clean up, remedial or other action will or might result in a
cost to Lessee of more than $25,000.00, Lessee shall notify Lessor in writing of
such condition. In the event of any Environmental Violation (regardless of
whether notice thereof must be given), Lessee shall, not later than thirty (30)
days after Lessee has actual knowledge of such Environmental Violation, either
deliver to Lessor a Termination Notice with respect to the applicable Property
or Properties pursuant to Section 16.1, if applicable, or, at Lessee's sole cost
and expense, promptly and diligently undertake and diligently complete any
response, clean up, remedial or other action (including without limitation the
pursuit by Lessee of appropriate action against any off-site or third party
source for contamination) necessary to remove, cleanup or remediate the
Environmental Violation in accordance with all applicable Environmental Laws.
Any such undertaking shall be timely completed in accordance with prudent
industry standards. If Lessee does not deliver a Termination Notice with respect
to such Property pursuant to Section 16.1, Lessee shall, upon completion of
remedial action by Lessee, cause to be prepared by a reputable environmental
consultant acceptable to Lessor a report describing the Environmental Violation
and the actions taken by Lessee (or its agents) in response to such
Environmental Violation, and a statement by the consultant that the
Environmental Violation has been remedied in full compliance with applicable
Environmental Law. Not less than sixty (60) days prior to any time that Lessee
elects to cease operations with respect to any Property or to remarket any
Property pursuant to Section 20.1 hereof or any other provision of any Operative
Agreement, Lessee at its expense shall cause to be delivered to Lessor a Phase I
environmental site assessment respecting such Property recently prepared (no
more than thirty (30) days prior to the date of delivery) by an independent
recognized professional acceptable to Lessor in its reasonable discretion and in
form, scope and content satisfactory to Lessor in its reasonable discretion.
Notwithstanding any other provision of any Operative Agreement, if Lessee fails
to comply with the foregoing obligation regarding the Phase I environmental site
assessment, Lessee shall be obligated to purchase such Property for its
Termination Value and shall not be permitted to exercise (and Lessor shall have
no obligation to honor any such exercise) any rights under any Operative
Agreement regarding a sale of such Property to a Person other than Lessee or any
Affiliate of Lessee.

                                       21

<PAGE>   26

         15.3 NOTICE OF ENVIRONMENTAL MATTERS.

         Promptly, but in any event within five (5) Business Days from the date
a Responsible Officer of the Lessee has actual knowledge or should have known
thereof, Lessee shall provide to Lessor written notice of any pending or
threatened claim, action or proceeding involving any Environmental Law or any
Release on or in connection with any Property or Properties. All such notices
shall describe in reasonable detail the nature of the claim, action or
proceeding and Lessee's proposed response thereto. In addition, Lessee shall
provide to Lessor, within five (5) Business Days of receipt, copies of all
material written communications with any Governmental Authority relating to any
Environmental Law in connection with any Property. Lessee shall also provide,
within a reasonable amount of time after Lessor's request, such detailed reports
of any such material environmental claims as may reasonably be requested by
Lessor.

                                   ARTICLE XVI

         16.1 TERMINATION UPON CERTAIN EVENTS.

         If Lessee has delivered, or is deemed to have delivered, written notice
of a termination of this Lease with respect to the applicable Property to Lessor
in the form described in Section 16.2(a) (a "Termination Notice") pursuant to
the provisions of this Lease, then following the applicable Casualty,
Condemnation or Environmental Violation, this Lease shall terminate with respect
to the affected Property on the applicable Termination Date.

         16.2 PROCEDURES.

                  (a) A Termination Notice shall contain: (i) notice of
         termination of this Lease with respect to the affected Property on a
         Payment Date not more than sixty (60) days after Lessor's receipt of
         such Termination Notice (the "Termination Date"); and (ii) a binding
         and irrevocable agreement of Lessee to pay the Termination Value for
         the applicable Property and purchase such Property on such Termination
         Date.

                  (b) On each Termination Date, Lessee shall pay to Lessor the
         Termination Value for the applicable Property, and Lessor shall convey
         such Property or the remaining portion thereof, if any, to Lessee (or
         Lessee's designee), all in accordance with Section 20.2.

                                  ARTICLE XVII

         17.1 LEASE EVENTS OF DEFAULT.

         If any one (1) or more of the following events (each a "Lease Event of
Default") shall occur:

                                       22

<PAGE>   27

                  (a) Lessee shall fail to make payment of (i) any Basic Rent
         (except as set forth in clause (ii)) within three (3) Business Days
         after the same has become due and payable or (ii) any Termination
         Value, on the date any such payment is due and payable, or any payment
         of Basic Rent or Supplemental Rent due on the due date of any such
         payment of Termination Value, or any amount due on the Expiration Date;

                  (b) Lessee shall fail to make payment of any Supplemental Rent
         (other than Supplemental Rent referred to in Section 17.1(a)(ii)) which
         has become due and payable within three (3) Business Days after receipt
         of notice that such payment is due;

                  (c) Lessee shall fail to maintain insurance as required by
         Article XIV of this Lease or to deliver any requisite annual
         certificate with respect thereto within ten (10) days of the date such
         certificate is due under the terms hereof;

                  (d) (i) Lessee shall fail to observe or perform any term,
         covenant, obligation or condition of Lessee under this Lease or any
         other Operative Agreement to which Lessee is a party other than those
         set forth in Sections 17.1(a), (b) or (c) hereof, and such failure
         shall continue for fifteen (15) days after notice thereof to the
         Lessee, provided if any such failure other than those set forth in
         Sections 17.1(a), (b) or (c) hereof is not capable of remedy within
         such fifteen (15) day period but can be remedied with further diligence
         and if the Lessee has and continues to pursue diligently such remedy,
         then the Lessee shall be granted additional time to pursue such remedy
         but in no event more than an additional fifteen (15) days or (ii) any
         representation or warranty made by Lessee set forth in this Lease or in
         any other Operative Agreement or in any document entered into in
         connection herewith or therewith or in any document, certificate or
         financial or other statement delivered in connection herewith or
         therewith shall be false or inaccurate in any material way when made;

                  (e) An Agency Agreement Event of Default shall have occurred
         and be continuing;

                  (f) Lessee or any of its Subsidiaries shall default (beyond
         applicable periods of grace and/or notice and cure) in the payment when
         due of any principal of or interest on any Indebtedness having an
         outstanding principal amount of at least $10,000,000.00; or any other
         event or condition shall occur which results in a default of any such
         Indebtedness or enables the holder of any such Indebtedness or any
         Person acting on such holder's behalf to accelerate the maturity
         thereof;

                  (g) The liquidation or dissolution of Lessee, or the
         suspension of the business of Lessee, or the filing by Lessee of a
         voluntary petition or an answer seeking reorganization, arrangement,
         readjustment of its debts or for any other relief under the United
         States Bankruptcy Code, as amended, or under any other insolvency act
         or law, state or federal, now or hereafter existing, or any other
         action of Lessee indicating its consent to, approval of or acquiescence
         in, any such petition or proceeding; the

                                       23

<PAGE>   28

         application by Lessee for, or the appointment by consent or
         acquiescence of Lessee of a receiver, a trustee or a custodian of
         Lessee for all or a substantial part of its property; the making by
         Lessee of any assignment for the benefit of creditors; the admission by
         Lessee in writing of its inability to pay its debts as they mature or
         Lessee is generally not paying its debts and other financial
         obligations as they become due and payable; or Lessee taking any
         corporate action to authorize any of the foregoing;

                  (h) The filing of an involuntary petition against Lessee in
         bankruptcy or seeking reorganization, arrangement, readjustment of its
         debts or for any other relief under the United States Bankruptcy Code,
         as amended, or under any other insolvency act or law, state or federal,
         now or hereafter existing; or the involuntary appointment of a
         receiver, a trustee or a custodian of Lessee for all or a substantial
         part of its property; or the issuance of a warrant of attachment,
         execution or similar process against any substantial part of the
         property of Lessee, and the continuance of any of such events for
         ninety (90) days undismissed or undischarged;

                  (i) The adjudication of Lessee as bankrupt or insolvent;

                  (j) The entering of any order in any proceedings against
         Lessee or any Subsidiary decreeing the dissolution, divestiture or
         split-up of Lessee or any Subsidiary, and such order remains in effect
         for more than sixty (60) days;

                  (k) Any report, certificate, financial statement or other
         instrument delivered to Lessor by or on behalf of Lessee pursuant to
         the terms of this Lease or any other Operative Agreement is false or
         misleading in any material respect when made or delivered;

                  (l) [INTENTIONALLY RESERVED];

                  (m) A final judgment or judgments for the payment of money
         shall be rendered by a court or courts against Lessee or any of its
         Subsidiaries or any of their assets in excess of $2,000,000.00 in the
         aggregate, and (i) the same shall not be discharged (or provision shall
         not be made for such discharge), or a stay of execution thereof shall
         not be procured, within thirty (30) days from the date of entry
         thereof, or (ii) Lessee or such Subsidiary shall not, within said
         period of thirty (30) days, or such longer period during which
         execution of the same shall have been stayed, appeal therefrom and
         cause the execution thereof to be stayed during such appeal, or (iii)
         such judgment or judgments shall not be discharged (or provisions shall
         not be made for such discharge) within thirty (30) days after a
         decision has been reached with respect to such appeal and the related
         stay has been lifted;

                  (n) Lessee or any member of the Controlled Group shall fail to
         pay when due an amount or amounts aggregating in excess of
         $2,000,000.00 which it shall have become liable to pay to the PBGC or
         to a Pension Plan under Title IV of ERISA; or notice of intent to
         terminate a Pension Plan or Pension Plans having aggregate Unfunded

                                       24

<PAGE>   29

         Liabilities in excess of $2,000,000.00 shall be filed under Title IV of
         ERISA by Lessee or any member of the Controlled Group, any plan
         administrator or any combination of the foregoing; or the PBGC shall
         institute proceedings under Title IV of ERISA to terminate or to cause
         a trustee to be appointed to administer any such Pension Plan or
         Pension Plans or a proceeding shall be instituted by a fiduciary of any
         such Pension Plan or Pension Plans against Lessee or any member of the
         Controlled Group to enforce Section 515 or 4219(c)(5) of ERISA; or a
         condition shall exist by reason of which the PBGC would be entitled to
         obtain a decree adjudicating that any such Pension Plan or Pension
         Plans must be terminated;

                  (o) (i) As a result of one (1) or more transactions after the
         date of this Lease, any "person" or "group" of persons, shall have
         "beneficial ownership" (within the meaning of Section 13(d) or 14(d) of
         the Securities Exchange Act of 1934, as amended, and the applicable
         rules and regulations thereunder) of thirty percent (30%) or more of
         the outstanding common stock of Lessee (excluding any such instances of
         beneficial ownership arising as a direct result of the solicitation of
         revocable proxies by or on behalf of the board of directors of Lessee)
         provided, however, it is agreed that TRW, Inc. shall be permitted to
         have "beneficial ownership" of up to forty-one percent (41%) of the
         outstanding common stock of Lessee; or (ii) without limiting the
         generality of the foregoing, during any period of twelve (12)
         consecutive months, commencing after the date of this Lease,
         individuals who at the beginning of such period of twelve (12) months
         were directors of Lessee shall cease for any reason to constitute a
         majority of the board of directors of Lessee, provided, that the
         relationships among the respective shareholders of Lessee on the
         Initial Closing Date shall not be deemed to constitute all or any
         combination of them as a "group" for purposes of clause (o)(i); or

                  (p) Any Operative Agreement shall cease to be in full force
         and effect;

then, in any such event, Lessor may, in addition to the other rights and
remedies provided for in this Article XVII and in Section 18.1, terminate this
Lease by giving Lessee five (5) days notice of such termination (provided,
notwithstanding the foregoing, this Lease shall be deemed to be automatically
terminated without the giving of notice upon the occurrence of a Lease Event of
Default under Sections 17.1(g), (h) or (i)), and this Lease shall terminate, and
all rights of Lessee under this Lease shall cease. Lessee shall, to the fullest
extent permitted by law, pay as Supplemental Rent all costs and expenses
incurred by or on behalf of Lessor or any other Financing Party, including
without limitation reasonable fees and expenses of counsel, as a result of any
Lease Event of Default hereunder.

         A POWER OF SALE HAS BEEN GRANTED IN THIS LEASE. A POWER OF SALE MAY
ALLOW LEA STROMIRE JOHNSON OR HER SUCCESSORS OR ASSIGNEE, AS TRUSTEE FOR THE
BENEFIT OF LESSOR, TO TAKE THE PROPERTIES AND SELL THE PROPERTIES WITHOUT GOING
TO COURT IN A FORECLOSURE ACTION UPON THE OCCURRENCE OF A LEASE EVENT OF
DEFAULT.

                                       25

<PAGE>   30

         17.2 SURRENDER OF POSSESSION.

         If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessee shall, upon thirty (30) days written notice, surrender to Lessor
possession of the Properties. Lessor may enter upon and repossess the Properties
by such means as are available at law or in equity, and may remove Lessee and
all other Persons and any and all personal property and Lessee's equipment and
personalty and severable Modifications from the Properties. Lessor shall have no
liability by reason of any such entry, repossession or removal performed in
accordance with applicable law. Upon the written demand of Lessor, Lessee shall
return the Properties promptly to Lessor, in the manner and condition required
by, and otherwise in accordance with the provisions of, Section 22.1(c) hereof.

         17.3 RELETTING.

         If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessor may, but shall be under no obligation to, relet any or all of the
Properties, for the account of Lessee or otherwise, for such term or terms
(which may be greater or less than the period which would otherwise have
constituted the balance of the Term) and on such conditions (which may include
concessions or free rent) and for such purposes as Lessor may determine, and
Lessor may collect, receive and retain the rents resulting from such reletting.
Lessor shall not be liable to Lessee for any failure to relet any Property or
for any failure to collect any rent due upon such reletting.

         17.4 DAMAGES.

         Neither (a) the termination of this Lease as to all or any of the
Properties pursuant to Section 17.1; (b) the repossession of all or any of the
Properties; nor (c) the failure of Lessor to relet all or any of the Properties,
the reletting of all or any portion thereof, nor the failure of Lessor to
collect or receive any rentals due upon any such reletting, shall relieve Lessee
of its liabilities and obligations hereunder, all of which shall survive any
such termination, repossession or reletting. If any Lease Event of Default shall
have occurred and be continuing and notwithstanding any termination of this
Lease pursuant to Section 17.1, Lessee shall forthwith pay to Lessor all Rent
and other sums due and payable hereunder to and including without limitation the
date of such termination. Thereafter, on the days on which the Basic Rent or
Supplemental Rent, as applicable, are payable under this Lease or would have
been payable under this Lease if the same had not been terminated pursuant to
Section 17.1 and until the end of the Term hereof or what would have been the
Term in the absence of such termination, Lessee shall pay Lessor, as current
liquidated damages (it being agreed that it would be impossible accurately to
determine actual damages) an amount equal to the Basic Rent and Supplemental
Rent that are payable under this Lease or would have been payable by Lessee
hereunder if this Lease had not been terminated pursuant to Section 17.1, less
the net proceeds, if any, which are actually received by Lessor with respect to
the period in question of any reletting of any Property or any portion thereof;
provided, that Lessee's obligation to make payments of Basic Rent and
Supplemental Rent under this Section 17.4 shall continue only so long as Lessor
shall not have

                                       26

<PAGE>   31

received the amounts specified in Section 17.6. In calculating the amount of
such net proceeds from reletting, there shall be deducted all of Lessor's, any
Holder's, the Agent's and any Lender's reasonable expenses in connection
therewith, including without limitation repossession costs, brokerage or sales
commissions, fees and expenses for counsel and any necessary repair or
alteration costs and expenses incurred in preparation for such reletting. To the
extent Lessor receives any damages pursuant to this Section 17.4, such amounts
shall be regarded as amounts paid on account of Rent. Lessee specifically
acknowledges and agrees that its obligations under this Section 17.4 shall be
absolute and unconditional under any and all circumstances and shall be paid
and/or performed, as the case may be, without notice or demand and without any
abatement, reduction, diminution, setoff, defense, counterclaim or recoupment
whatsoever.

         17.5 POWER OF SALE.

         Without limiting any other remedies set forth in this Lease, Lessor and
Lessee agree that Lessee has granted, pursuant to Section 7.1(b) hereof and each
Lease Supplement, a Lien against the Properties WITH POWER OF SALE, and that,
upon the occurrence and during the continuance of any Lease Event of Default,
Lea Stromire Johnson, or her successors or assignee, as trustee for the benefit
of Lessor, shall have the power and authority, to the extent provided by law,
after prior notice and lapse of such time as may be required by law, to
foreclose its interest (or cause such interest to be foreclosed) in all or any
part of the Properties.

         17.6 FINAL LIQUIDATED DAMAGES.

         If a Lease Event of Default shall have occurred and be continuing,
whether or not this Lease shall have been terminated pursuant to Section 17.1
and whether or not Lessor shall have collected any current liquidated damages
pursuant to Section 17.4, Lessor shall have the right to recover, by demand to
Lessee and at Lessor's election, and Lessee shall pay to Lessor, as and for
final liquidated damages, but exclusive of the indemnities payable under Section
11 of the Participation Agreement (which, if requested, shall be paid
concurrently), and in lieu of all current liquidated damages beyond the date of
such demand (it being agreed that it would be impossible accurately to determine
actual damages) the Termination Value. Upon payment of the amount specified
pursuant to the first sentence of this Section 17.6, Lessee shall be entitled to
receive from Lessor, either at Lessee's request or upon Lessor's election, in
either case at Lessee's cost, an assignment of Lessor's entire right, title and
interest in and to the Properties, Improvements, Fixtures, Modifications,
Equipment and all components thereof, in each case in recordable form and
otherwise in conformity with local custom and free and clear of the Lien of this
Lease (including without limitation the release of any memoranda of Lease and/or
the Lease Supplement recorded in connection therewith) and any Lessor Liens. The
Properties shall be conveyed to Lessee "AS-IS, WHERE-IS" and in their then
present physical condition. If any statute or rule of law shall limit the amount
of such final liquidated damages to less than the amount agreed upon, Lessor
shall be entitled to the maximum amount allowable under such statute or rule of
law; provided, however, Lessee shall not be entitled to receive an assignment of
Lessor's interest in the Properties, the Improvements, Fixtures, Modifications,
Equipment or the components thereof unless Lessee shall have paid in full the
Termination Value. Lessee specifically acknowledges and agrees that its
obligations under this Section 17.6 shall be

                                       27

<PAGE>   32

absolute and unconditional under any and all circumstances and shall be paid
and/or performed, as the case may be, without notice or demand and without any
abatement, reduction, diminution, setoff, defense, counterclaim or recoupment
whatsoever.

         17.7 ENVIRONMENTAL COSTS.

         If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessee shall pay directly to a reputable environmental consultant selected by
the Agent and reasonably acceptable to the Lessee, such acceptance by Lessee
shall not be unreasonably withheld, for the cost of any environmental testing
and/or remediation work undertaken respecting any Property, as such testing or
work is deemed appropriate in the reasonable judgment of Lessor in consultation
with an environmental consultant, and shall indemnify and hold harmless Lessor
and each other Indemnified Person therefrom for the costs of the testing or
remediation work (the foregoing shall not limit Lessee's obligations pursuant to
Section 11 of the Participation Agreement). Lessee shall pay all amounts
referenced in the immediately preceding sentence within fifteen (15) days of any
written request by Lessor for such payment. The provisions of this Section 17.7
shall not limit the obligations of Lessee under any Operative Agreement
regarding indemnification obligations, environmental testing, remediation and/or
work.

         17.8 WAIVER OF CERTAIN RIGHTS.

         If this Lease shall be terminated pursuant to Section 17.1, Lessee
waives, to the fullest extent permitted by Law, (a) any notice of re-entry or
the institution of legal proceedings to obtain re-entry or possession; (b) any
right of redemption, re-entry or possession; (c) the benefit of any laws now or
hereafter in force exempting property from liability for rent or for debt; and
(d) any other rights which might otherwise limit or modify any of Lessor's
rights or remedies under this Article XVII.

         17.9 ASSIGNMENT OF RIGHTS UNDER CONTRACTS.

         If a Lease Event of Default shall have occurred and be continuing, and
whether or not this Lease shall have been terminated pursuant to Section 17.1,
Lessee shall upon Lessor's demand immediately assign, transfer and set over to
Lessor all of Lessee's right, title and interest in and to each agreement
executed by Lessee in connection with the acquisition, installation, testing,
use, development, construction, operation, maintenance, repair, refurbishment
and restoration of the Properties (including without limitation all right, title
and interest of Lessee with respect to all warranty, performance, service and
indemnity provisions), as and to the extent that the same relate to the
acquisition, installation, testing, use, development, construction, operation,
maintenance, repair, refurbishment and restoration of the Properties or any of
them.

                                       28

<PAGE>   33

         17.10 REMEDIES CUMULATIVE.

         The remedies herein provided shall be cumulative and in addition to
(and not in limitation of) any other remedies available at law, equity or
otherwise, including without limitation any mortgage foreclosure remedies.

                                  ARTICLE XVIII

         18.1 LESSOR'S RIGHT TO CURE LESSEE'S LEASE DEFAULTS.

         Lessor, without waiving or releasing any obligation or Lease Event of
Default, may (but shall be under no obligation to) remedy any Lease Event of
Default for the account and at the sole cost and expense of Lessee, including
without limitation the failure by Lessee to maintain the insurance required by
Article XIV, and may, to the fullest extent permitted by law, and
notwithstanding any right of quiet enjoyment in favor of Lessee, enter upon any
Property, and take all such action thereon as may be necessary or appropriate
therefor. No such entry shall be deemed an eviction of any lessee. All
out-of-pocket costs and expenses so incurred (including without limitation fees
and expenses of counsel), together with interest thereon at the Overdue Rate
from the date on which such sums or expenses are paid by Lessor, shall be paid
by Lessee to Lessor on demand.

                                   ARTICLE XIX

         19.1 PROVISIONS RELATING TO LESSEE'S EXERCISE OF ITS PURCHASE OPTION.

         Subject to Section 19.2, in connection with any termination of this
Lease with respect to any Property pursuant to the terms of Section 16.2, or in
connection with Lessee's exercise of its Purchase Option, upon the date on which
this Lease is to terminate with respect to any Property, and upon tender by
Lessee of the amounts set forth in Sections 16.2(b) or 20.2, as applicable,
Lessor shall execute and deliver to Lessee (or to Lessee's designee) at Lessee's
cost and expense an assignment (by deed or other appropriate instrument) of
Lessor's entire interest in such Property, in each case in recordable form and
otherwise in conformity with local custom and free and clear of any Lessor Liens
attributable to Lessor but without any other warranties (of title or otherwise)
from Lessor. Such Property shall be conveyed to Lessee "AS-IS, "WHERE-IS" and in
then present physical condition.

         19.2 NO PURCHASE OR TERMINATION WITH RESPECT TO LESS THAN ALL OF A
              PROPERTY.

         Lessee shall not be entitled to exercise its Purchase Option or the
Sale Option separately with respect to a portion of any Property consisting of
Land, Equipment, Improvements and/or any interest pursuant to a Ground Lease but
shall be required to exercise its Purchase Option or the Sale Option with
respect to an entire Property.

                                       29

<PAGE>   34

                                   ARTICLE XX

         20.1 PURCHASE OPTION OR SALE OPTION-GENERAL PROVISIONS.

         Not less than one hundred eighty (180) days and no more than two
hundred forty (240) days prior to the Expiration Date or, respecting the
Purchase Option only, not less than sixty (60) days and no more than ninety (90)
days prior to any Payment Date occurring after August 13, 2001 (such Expiration
Date or, respecting the Purchase Option only, any such Payment Date occurring
after August 13, 2001 being hereinafter referred to as the "Election Date"),
Lessee may give Lessor irrevocable written notice (the "Election Notice") that
Lessee is electing to exercise either (a) the option to purchase all, but not
less than all, the Properties on the applicable Election Date (the "Purchase
Option") or (b) with respect to an Election Notice given in connection with the
Expiration Date only, the option to remarket all, but not less than all, the
Properties to a Person other than Lessee or any Affiliate of Lessee and cause a
sale of such Properties to occur on the applicable Election Date pursuant to the
terms of Section 22.1 (the "Sale Option"). If Lessee does not give an Election
Notice indicating the Purchase Option or the Sale Option at least one hundred
eighty (180) days and not more than two hundred forty (240) days prior to the
Expiration Date then Lessee shall be deemed to have elected for the Purchase
Option to apply on the Expiration Date. If Lessee shall either (i) elect (or be
deemed to have elected) to exercise the Purchase Option or (ii) elect the Sale
Option and fail to cause all, but not less than all, the Properties to be sold
in accordance with the terms of Section 22.1 on the applicable Election Date,
then in either case Lessee shall pay to Lessor on the date on which such
purchase or sale is scheduled to occur an amount equal to the Termination Value
for all, but not less than all, the Properties (which the parties do not intend
to be a "bargain" purchase price) and, upon receipt of such amounts and
satisfaction of such obligations, Lessor shall transfer to Lessee all of
Lessor's right, title and interest in and to all, but not less than all, the
Properties in accordance with Section 20.2.

         20.2 LESSEE PURCHASE OPTION.

         Provided, no Default or Event of Default shall have occurred and be
continuing (other than those that will be cured by the payment of the
Termination Value for all the Properties) and provided, that the Election Notice
has been appropriately given specifying the Purchase Option, Lessee shall
purchase all the Properties on the applicable Election Date at a price equal to
the Termination Value for such Properties (which the parties do not intend to be
a "bargain" purchase price).

         Subject to Section 19.2, in connection with any termination of this
Lease with respect to any Property pursuant to the terms of Section 16.2, or in
connection with Lessee's exercise of its Purchase Option, upon the date on which
this Lease is to terminate with respect to a Property or all of the Properties,
and upon tender by Lessee of the amounts set forth in Section 16.2(b) or this
Section 20.2, as applicable, Lessor shall execute, acknowledge (where required)
and deliver to Lessee, at Lessee's cost and expense, each of the following: (a)
a termination or assignment (as requested by the Lessee) of each applicable
Ground Lease and special or limited warranty Deeds

                                       30

<PAGE>   35

conveying each Property (to the extent it is real property not subject to a
Ground Lease) to Lessee free and clear of the Lien of this Lease, the Lien of
the Credit Documents and any Lessor Liens; (b) a Bill of Sale conveying each
Property (to the extent it is personal property) to Lessee free and clear of the
Lien of this Lease, the Lien of the Credit Documents and any Lessor Liens; (c)
any real estate tax affidavit or other document required by law to be executed
and filed in order to record the applicable Deed and/or the applicable Ground
Lease termination; and (d) FIRPTA affidavits. All of the foregoing documentation
must be in form and substance reasonably satisfactory to Lessor. The applicable
Property shall be conveyed to Lessee "AS-IS, WHERE-IS" and in then present
physical condition.

         If any Property is the subject of remediation efforts respecting
Hazardous Substances at the applicable Election Date which could materially and
adversely impact the Fair Market Sales Value of such Property (with materiality
determined in Lessor's discretion), then Lessee shall be obligated to purchase
each such Property pursuant to Section 20.2.

         On the applicable Election Date on which Lessee has elected to exercise
its Purchase Option, Lessee shall pay (or cause to be paid) to Lessor, the Agent
and all other parties, as appropriate, the sum of all costs and expenses
incurred by any such party in connection with the election by Lessee to exercise
its Purchase Option and all Rent and all other amounts then due and payable or
accrued under this Lease and/or any other Operative Agreement.

         20.3 THIRD PARTY SALE OPTION.

                  (a) Provided, that (i) no Default or Event of Default shall
         have occurred and be continuing and (ii) the Election Notice has been
         appropriately given specifying the Sale Option, Lessee shall undertake
         to cause a sale of the Properties on the applicable Election Date (all
         as specified in the Election Notice), in accordance with the provisions
         of Section 22.1 hereof. Such Election Date on which a sale is required
         may be hereafter referred to as the "Sale Date".

                  (b) In the event Lessee exercises the Sale Option then, as
         soon as practicable and in all events not less than sixty (60) days and
         not more than ninety (90) days prior to the Sale Date, Lessee at its
         expense shall cause to be delivered to Lessor a Phase I environmental
         site assessment for each of the Properties recently prepared (no more
         than thirty (30) days old prior to the delivery date) by an independent
         recognized professional reasonably acceptable to Lessor and in form,
         scope and content reasonably satisfactory to Lessor. In the event that
         Lessor shall not have received such environmental site assessment by
         the date sixty (60) days prior to the Sale Date or in the event that
         such environmental assessment shall reveal the existence of any
         material violation of Environmental Laws, other material Environmental
         Violation or potential material Environmental Violation (with
         materiality determined in each case by Lessor in its reasonable
         discretion), then Lessee on the Sale Date shall pay to Lessor an amount
         equal to the Termination Value for all the Properties and any and all
         other amounts due and owing hereunder. Upon receipt of such payment and
         all other amounts due under the

                                       31

<PAGE>   36

         Operative Agreements, Lessor shall transfer to Lessee all of Lessor's
         right, title and interest in and to all the Properties in accordance
         with Section 19.1.

                                   ARTICLE XXI

         21.1 [INTENTIONALLY RESERVED].

                                  ARTICLE XXII

         22.1 SALE PROCEDURE.

                  (a) During the Marketing Period, Lessee, on behalf of Lessor,
         shall obtain bids for the cash purchase of all the Properties in
         connection with a sale to one (1) or more third party purchasers to be
         consummated on the Sale Date for the highest price available, shall
         notify Lessor promptly of the name and address of each prospective
         purchaser and the cash price which each prospective purchaser shall
         have offered to pay for each such Property and shall provide Lessor
         with such additional information about the bids and the bid
         solicitation procedure as Lessor may reasonably request from time to
         time. All such prospective purchasers must be Persons other than Lessee
         or any Affiliate of Lessee. On the Sale Date, Lessee shall pay (or
         cause to be paid) to Lessor and all other parties, as appropriate, the
         sum of all costs and expenses incurred by Lessor and/or the Agent (as
         the case may be) in connection with such sale of one or more
         Properties, all Rent and all other amounts then due and payable or
         accrued under this Lease and/or any other Operative Agreement.

                  Lessor may reject any and all bids and may solicit and obtain
         bids by giving Lessee written notice to that effect; provided, however,
         that notwithstanding the foregoing, Lessor may not reject the bids
         submitted by Lessee if such bids, in the aggregate, are greater than or
         equal to the sum of the Limited Recourse Amount for all the Properties,
         and represent bona fide offers from one (1) or more third party
         purchasers. If the highest price which a prospective purchaser or the
         prospective purchasers shall have offered to pay for all the Properties
         on the Sale Date is less than the sum of the Limited Recourse Amount
         for all the Properties or if such bids do not represent bona fide
         offers from one (1) or more third parties or if there are no bids,
         Lessor may elect to retain one or more of the Properties by giving
         Lessee prior written notice of Lessor's election to retain the same,
         and promptly upon receipt of such notice, Lessee shall surrender, or
         cause to be surrendered, each of the Properties specified in such
         notice in accordance with the terms and conditions of Section 10.1.
         Upon acceptance of any bid, Lessor agrees, at Lessee's request and
         expense, to execute a contract of sale with respect to such sale, so
         long as the same is consistent with the terms of this Article 22 and
         provides by its terms that it is nonrecourse to Lessor.

                                       32

<PAGE>   37

                  Unless Lessor shall have elected to retain one or more of the
         Properties pursuant to the provisions of the preceding paragraph,
         Lessee shall arrange for Lessor to sell all the Properties free and
         clear of the Lien of this Lease and any Lessor Liens attributable to
         Lessor, without recourse or warranty (of title or otherwise), for cash
         on the Sale Date to the purchaser or purchasers offering the highest
         cash sales price, as identified by Lessee or Lessor, as the case may
         be; provided, however, solely as to Lessor or the Trust Company, in its
         individual capacity, any Lessor Lien shall not constitute a Lessor Lien
         so long as Lessor or the Trust Company, in its individual capacity, is
         diligently and in good faith contesting, at the cost and expense of
         Lessor or the Trust Company, in its individual capacity, such Lessor
         Lien by appropriate proceedings in which event the applicable Sale
         Date, all without penalty or cost to Lessee, shall be delayed for the
         period of such contest. To effect such transfer and assignment, Lessor
         shall execute, acknowledge (where required) and deliver to the
         appropriate purchaser each of the following: (a) special or limited
         warranty Deeds conveying each such Property (to the extent it is real
         property titled to Lessor) and an assignment of the Ground Lease
         conveying the leasehold interest of Lessor in each such Property (to
         the extent it is real property and subject to a Ground Lease) to the
         appropriate purchaser free and clear of the Lien of this Lease, the
         Lien of the Credit Documents and any Lessor Liens; (b) a Bill of Sale
         conveying each such Property (to the extent it is personal property)
         titled to Lessor to the appropriate purchaser free and clear of the
         Lien of this Lease, the Lien of the Credit Documents and any Lessor
         Liens; (c) any real estate tax affidavit or other document required by
         law to be executed and filed in order to record each Deed and/or each
         Ground Lease assignment; and (d) FIRPTA affidavits, as appropriate. All
         of the foregoing documentation must be in form and substance reasonably
         satisfactory to Lessor. Lessee shall surrender the Properties so sold
         or subject to such documents to each purchaser in the condition
         specified in Section 10.1, or in such other condition as may be agreed
         between Lessee and such purchaser. Lessee shall not take or fail to
         take any action which would have the effect of unreasonably
         discouraging bona fide third party bids for any Property. If each of
         the Properties is not either (i) sold on the Sale Date in accordance
         with the terms of this Section 22.1, or (ii) retained by Lessor
         pursuant to an affirmative election made by Lessor pursuant to the
         second sentence of the second paragraph of this Section 22.1(a), then
         (x) Lessee shall be obligated to pay Lessor on the Sale Date an amount
         equal to the aggregate Termination Value for all the Properties less
         any sales proceeds received, and (y) Lessor shall transfer each
         applicable Property to Lessee in accordance with Section 20.2.

                  (b) If the Properties are sold on a Sale Date to one (1) or
         more third party purchasers in accordance with the terms of Section
         22.1(a) and the aggregate purchase price paid for all the Properties is
         less than the sum of the aggregate Property Cost for all the Properties
         plus all Rent and all other amounts then due and owing pursuant to the
         Operative Agreements (hereinafter such difference shall be referred to
         as the "Deficiency Balance"), then Lessee hereby unconditionally
         promises to pay to Lessor on the Sale Date the lesser of (i) the
         Deficiency Balance, or (ii) the Maximum Residual Guarantee Amount for
         all the Properties. On a Sale Date if (x) Lessor receives the aggregate
         Termination Value for all the Properties from one (1) or more third
         party purchasers, (y) Lessor and such other parties receive all other
         amounts specified in the last sentence of the first

                                       33

<PAGE>   38

         paragraph of Section 22.1(a) and (z) the aggregate purchase price paid
         for all the Properties on such date exceeds the sum of the aggregate
         Property Cost for all the Properties, then Lessee may retain such
         excess. If one or more of the Properties are retained by Lessor
         pursuant to an affirmative election made by Lessor pursuant to the
         provisions of Section 22.1(a), then Lessee hereby unconditionally
         promises to pay to Lessor on the Sale Date all Rent and all other
         amounts then due and owing pursuant to the Operative Agreements and an
         amount equal to the Maximum Residual Guarantee Amount for the
         Properties so retained. Any payment of the foregoing amounts described
         in this Section 22.1(b) shall be made together with a payment of all
         other amounts referenced in the last sentence of the first paragraph of
         Section 22.1(a) (without duplication).

                  (c) In the event that all the Properties are either sold to
         one (1) or more third party purchasers on the Sale Date or retained by
         Lessor in connection with an affirmative election made by Lessor
         pursuant to the provisions of Section 22.1(a), then in either case on
         the applicable Sale Date Lessee shall provide Lessor or such third
         party purchaser (unless otherwise agreed by such third party purchaser)
         with (i) to the extent permitted by applicable Legal Requirements, all
         permits, certificates of occupancy, governmental licenses and
         authorizations necessary to use, operate, repair, access and maintain
         each such Property for the purpose it is being used by Lessee, and (ii)
         such manuals, permits, easements, licenses, intellectual property,
         know-how, rights-of-way and other rights and privileges in the nature
         of an easement as are reasonably necessary or desirable in connection
         with the use, operation, repair, access to or maintenance of each such
         Property for its intended purpose or otherwise as Lessor or such third
         party purchaser(s) shall reasonably request (and a royalty-free license
         or similar agreement to effectuate the foregoing on terms reasonably
         agreeable to Lessor or such third party purchaser(s), as applicable).
         All assignments, licenses, easements, agreements and other deliveries
         required by clauses (i) and (ii) of this paragraph (c) shall be in form
         reasonably satisfactory to Lessor or such third party purchaser(s), as
         applicable, and shall be fully assignable (including without limitation
         both primary assignments and assignments given in the nature of
         security) without payment of any fee, cost or other charge. Lessee
         shall also execute any documentation requested by Lessor or such third
         party purchaser(s), as applicable, evidencing the continuation or
         assignment of each Ground Lease.

         22.2 APPLICATION OF PROCEEDS OF SALE.

         Lessor shall apply the proceeds of sale of any Property in the
following order of priority:

                  (a) FIRST, to pay or to reimburse Lessor (and/or the Agent, as
         the case may be) for the payment of all reasonable costs and expenses
         incurred by Lessor (and/or the Agent, as the case may be) in connection
         with the sale (to the extent Lessee has not satisfied its obligation to
         pay such costs and expenses);

                  (b) SECOND, so long as the Credit Agreement is in effect and
         any Loans or Holder Advances or any amount is owing to the Financing
         Parties under any Operative

                                       34

<PAGE>   39

         Agreement, to the Agent to be applied pursuant to intercreditor
         provisions among Lessor, the Lenders and the Holders contained in the
         Operative Agreements; and

                  (c) THIRD, to Lessee.

         22.3 INDEMNITY FOR EXCESSIVE WEAR.

         If the proceeds of the sale described in Section 22.1 with respect to
the Properties shall be less than the Limited Recourse Amount with respect to
the Properties, and at the time of such sale it shall have been reasonably
determined (pursuant to the Appraisal Procedure) that the Fair Market Sales
Value of the Properties shall have been impaired by greater than expected wear
and tear during the term of the Lease, Lessee shall pay to Lessor within ten
(10) days after receipt of Lessor's written statement (i) the amount of such
excess wear and tear determined by the Appraisal Procedure or (ii) the amount of
the Sale Proceeds Shortfall, whichever amount is less.

         22.4 APPRAISAL PROCEDURE.

         For determining the Fair Market Sales Value of the Properties or any
other amount which may, pursuant to any provision of any Operative Agreement, be
determined by an appraisal procedure, Lessor and Lessee shall use the following
procedure (the "Appraisal Procedure"). Lessor and Lessee shall endeavor to reach
a mutual agreement as to such amount for a period of ten (10) days from
commencement of the Appraisal Procedure under the applicable section of the
Lease, and if they cannot agree within ten (10) days, then two (2) qualified
appraisers, one (1) chosen by Lessee and one (1) chosen by Lessor, shall
mutually agree thereupon, but if either party shall fail to choose an appraiser
within twenty (20) days after notice from the other party of the selection of
its appraiser, then the appraisal by such appointed appraiser shall be binding
on Lessee and Lessor. If the two (2) appraisers cannot agree within twenty (20)
days after both shall have been appointed, then a third appraiser shall be
selected by the two (2) appraisers or, failing agreement as to such third
appraiser within thirty (30) days after both shall have been appointed, by the
American Arbitration Association. The decisions of the three (3) appraisers
shall be given within twenty (20) days of the appointment of the third appraiser
and the decision of the appraiser most different from the average of the other
two (2) shall be discarded and such average shall be binding on Lessor and
Lessee; provided, that if the highest appraisal and the lowest appraisal are
equidistant from the third appraisal, the third appraisal shall be binding on
Lessor and Lessee. The fees and expenses of the appraiser appointed by Lessee
shall be paid by Lessee; the fees and expenses of the appraiser appointed by
Lessor shall be paid by Lessor (such fees and expenses not being indemnified
pursuant to Section 11 of the Participation Agreement); and the fees and
expenses of the third appraiser shall be divided equally between Lessee and
Lessor.

         22.5 CERTAIN OBLIGATIONS CONTINUE.

         During the Marketing Period, the obligation of Lessee to pay Rent with
respect to the Properties (including without limitation the installment of Basic
Rent due on the Sale Date) shall continue undiminished until payment in full to
Lessor of the sale proceeds, if any, the Maximum

                                       35

<PAGE>   40

Residual Guarantee Amount, the amount due under Section 22.3, if any, and all
other amounts due to Lessor or any other Person with respect to all Properties
or any Operative Agreement. Lessor shall have the right, but shall be under no
duty, to solicit bids, to inquire into the efforts of Lessee to obtain bids or
otherwise to take action in connection with any such sale, other than as
expressly provided in this Article XXII.

                                  ARTICLE XXIII

         23.1 HOLDING OVER.

         If Lessee shall for any reason remain in possession of a Property after
the expiration or earlier termination of this Lease as to such Property (unless
such Property is conveyed to Lessee), such possession shall be as a tenancy at
sufferance during which time Lessee shall continue to pay Supplemental Rent that
would be payable by Lessee hereunder were the Lease then in full force and
effect with respect to such Property and Lessee shall continue to pay Basic Rent
at the lesser of the highest lawful rate and one hundred ten percent (110%) of
the last payment of Basic Rent due with respect to such Property prior to such
expiration or earlier termination of this Lease. Such Basic Rent shall be
payable from time to time upon demand by Lessor and such additional amount of
Basic Rent shall be applied by Lessor ratably to the Lenders and the Holders
based on their relative amounts of the then outstanding aggregate Property Cost
for all Properties. During any period of tenancy at sufferance, Lessee shall,
subject to the second preceding sentence, be obligated to perform and observe
all of the terms, covenants and conditions of this Lease, but shall have no
rights hereunder other than the right, to the extent given by law to tenants at
sufferance, to continue their occupancy and use of such Property. Nothing
contained in this Article XXIII shall constitute the consent, express or
implied, of Lessor to the holding over of Lessee after the expiration or earlier
termination of this Lease as to any Property (unless such Property is conveyed
to Lessee) and nothing contained herein shall be read or construed as preventing
Lessor from maintaining a suit for possession of such Property or exercising any
other remedy available to Lessor at law or in equity.

                                  ARTICLE XXIV

         24.1 RISK OF LOSS.

         During the Term, unless Lessee shall not be in actual possession of any
Property in question solely by reason of Lessor's exercise of its remedies of
dispossession under Article XVII, the risk of loss or decrease in the enjoyment
and beneficial use of such Property as a result of the damage or destruction
thereof by fire, the elements, casualties, thefts, riots, wars or otherwise is
assumed by Lessee, and Lessor shall in no event be answerable or accountable
therefor.

                                       36

<PAGE>   41

                                   ARTICLE XXV

         25.1 ASSIGNMENT.

                  (a) Lessee may not assign this Lease or any of its rights or
         obligations hereunder or with respect to any Property in whole or in
         part to any Person without the prior written consent of the Agent, the
         Lenders, the Holders and Lessor.

                  (b) No assignment by Lessee (referenced in this Section 25.1
         or otherwise) or other relinquishment of possession to any Property
         shall in any way discharge or diminish any of the obligations of Lessee
         to Lessor hereunder and Lessee shall remain directly and primarily
         liable under the Operative Agreements as to any rights or obligations
         assigned by Lessee or regarding any Property in which rights or
         obligations have been assigned or otherwise transferred.

         25.2 SUBLEASES.

                  (a) Promptly, but in any event within five (5) Business Days,
         following the execution and delivery of any sublease permitted by this
         Article XXV, Lessee shall notify Lessor of the execution of such
         sublease. As of the date of each Lease Supplement, Lessee shall lease
         the respective Property described in such Lease Supplement from Lessor,
         and any existing tenant respecting such Property shall automatically be
         deemed to be a subtenant of Lessee and not a tenant of Lessor.

                  (b) Without the prior written consent of the Agent, any
         Lender, any Holder or Lessor and subject to the other provisions of
         this Section 25.2, Lessee may sublet any Property or portion thereof to
         any wholly-owned Subsidiary of Lessee. Except as referenced in the
         immediately preceding sentence, no other subleases shall be permitted
         unless consented to in writing by Lessor. All subleasing shall be done
         on market terms and shall in no way diminish the fair market value or
         useful life of any applicable Property.

                  (c) No sublease (referenced in this Section 25.2 or otherwise)
         or other relinquishment of possession to any Property shall in any way
         discharge or diminish any of Lessee's obligations to Lessor hereunder
         and Lessee shall remain directly and primarily liable under this Lease
         as to such Property, or portion thereof, so sublet. The term of any
         such sublease shall not extend beyond the Term. Each sublease shall be
         expressly subject and subordinate to this Lease.

                                       37

<PAGE>   42

                                  ARTICLE XXVI

         26.1 NO WAIVER.

         No failure by Lessor or Lessee to insist upon the strict performance of
any term hereof or to exercise any right, power or remedy upon a default
hereunder, and no acceptance of full or partial payment of Rent during the
continuance of any such default, shall constitute a waiver of any such default
or of any such term. To the fullest extent permitted by law, no waiver of any
default shall affect or alter this Lease, and this Lease shall continue in full
force and effect with respect to any other then existing or subsequent default.

                                  ARTICLE XXVII

         27.1 ACCEPTANCE OF SURRENDER.

         No surrender to Lessor of this Lease or of all or any portion of any
Property or of any part of any thereof or of any interest therein shall be valid
or effective unless agreed to and accepted in writing by Lessor and no act by
Lessor or the Agent or any representative or agent of Lessor or the Agent, other
than a written acceptance, shall constitute an acceptance of any such surrender.

         27.2 NO MERGER OF TITLE.

         There shall be no merger of this Lease or of the leasehold estate
created hereby by reason of the fact that the same Person may acquire, own or
hold, directly or indirectly, in whole or in part, (a) this Lease or the
leasehold estate created hereby or any interest in this Lease or such leasehold
estate, (b) any right, title or interest in any Property, (c) any Notes, or (d)
a beneficial interest in Lessor.

                                 ARTICLE XXVIII

         28.1 [INTENTIONALLY RESERVED]

                                  ARTICLE XXIX

         29.1 NOTICES.

         All notices required or permitted to be given under this Lease shall be
in writing and delivered as provided in the Participation Agreement.

                                       38

<PAGE>   43

                                   ARTICLE XXX

         30.1 MISCELLANEOUS.

         Anything contained in this Lease to the contrary notwithstanding, all
claims against and liabilities of Lessee or Lessor arising from events
commencing prior to the expiration or earlier termination of this Lease shall
survive such expiration or earlier termination. If any provision of this Lease
shall be held to be unenforceable in any jurisdiction, such unenforceability
shall not affect the enforceability of any other provision of this Lease and
such jurisdiction or of such provision or of any other provision hereof in any
other jurisdiction.

         30.2 AMENDMENTS AND MODIFICATIONS.

         Neither this Lease nor any Lease Supplement may be amended, waived,
discharged or terminated except in accordance with the provisions of Section
12.4 of the Participation Agreement.

         30.3 SUCCESSORS AND ASSIGNS.

         All the terms and provisions of this Lease shall inure to the benefit
of the parties hereto and their respective successors and permitted assigns.

         30.4 HEADINGS AND TABLE OF CONTENTS.

         The headings and table of contents in this Lease are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         30.5 COUNTERPARTS.

         This Lease may be executed in any number of counterparts, each of which
shall be an original, but all of which shall together constitute one (1) and the
same instrument.

         30.6 GOVERNING LAW.

         THIS LEASE SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA, EXCEPT TO THE EXTENT
THE LAWS OF THE STATE WHERE A PARTICULAR PROPERTY IS LOCATED ARE REQUIRED TO
APPLY.

         30.7 CALCULATION OF RENT.

         All calculation of Rent payable hereunder shall be computed based on
the actual number of days elapsed over a year of three hundred sixty (360) days
or, to the extent such Rent is based on the Prime Lending Rate, three hundred
sixty-five (365) (or three hundred sixty-six (366), as applicable) days.

                                       39

<PAGE>   44

         30.8 MEMORANDA OF LEASE AND LEASE SUPPLEMENTS.

         This Lease shall not be recorded; provided, Lessor and Lessee shall
promptly record (a) a memorandum of this Lease and the applicable Lease
Supplement (in substantially the form of Exhibit B attached hereto) or a short
form lease (in form and substance reasonably satisfactory to Lessor) regarding
each Property promptly after the acquisition thereof in the local filing office
with respect thereto, in all cases at Lessee's cost and expense, and as required
under applicable law to sufficiently evidence this Lease and any such Lease
Supplement in the applicable real estate filing records.

         30.9 ALLOCATIONS BETWEEN THE LENDERS AND THE HOLDERS.

         Notwithstanding any other term or provision of this Lease to the
contrary, the allocations of the proceeds of the Properties and any and all
other Rent and other amounts received hereunder shall be subject to the
inter-creditor provisions between the Lenders and the Holders contained in the
Operative Agreements (or as otherwise agreed among the Lenders and the Holders
from time to time).

         30.10 LIMITATIONS ON RECOURSE.

         Notwithstanding anything contained in this Lease to the contrary,
Lessee agrees to look solely to Lessor's estate and interest in the Properties
(and in no circumstance to the Agent, the Lenders, the Holders or otherwise to
Lessor) for the collection of any judgment requiring the payment of money by
Lessor in the event of liability by Lessor, and no other property or assets of
Lessor or any shareholder, owner or partner (direct or indirect) in or of
Lessor, or any director, officer, employee, beneficiary, Affiliate of any of the
foregoing shall be subject to levy, execution or other enforcement procedure for
the satisfaction of the remedies of Lessee under or with respect to this Lease,
the relationship of Lessor and Lessee hereunder or Lessee's use of the
Properties or any other liability of Lessor to Lessee. Nothing in this Section
shall be interpreted so as to limit the terms of Sections 6.1 or 6.2 or the
provisions of Section 12.9 of the Participation Agreement.

         30.11 WAIVERS OF JURY TRIAL.

         EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY, TO THE
FULLEST EXTENT ALLOWED BY APPLICABLE LAW, WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS LEASE AND FOR ANY COUNTERCLAIM THEREIN.

         30.12 EXERCISE OF LESSOR RIGHTS.

         Lessee hereby acknowledges and agrees that the rights and powers of
Lessor under this Lease have been assigned to the Agent pursuant to the terms of
the Security Agreement and the other Operative Agreements. Lessor and Lessee
hereby acknowledge and agree that (a) the

                                       40

<PAGE>   45

Agent shall, in its discretion, direct and/or act on behalf of Lessor pursuant
to the provisions of Sections 8.2(h) and 8.6 of the Participation Agreement, (b)
all notices to be given to Lessor shall be given to the Agent and (c) all
notices to be given by Lessor may be given by the Agent, at its election.

         30.13 SUBMISSION TO JURISDICTION; VENUE; ARBITRATION.

         THE PROVISIONS OF THE PARTICIPATION AGREEMENT RELATING TO SUBMISSION TO
JURISDICTION, VENUE AND ARBITRATION ARE HEREBY INCORPORATED BY REFERENCE HEREIN,
MUTATIS MUTANDIS.

         30.14 USURY SAVINGS PROVISION.

         IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND CONTRACT IN
STRICT COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT. TO THE
EXTENT ANY RENT OR PAYMENTS HEREUNDER ARE HEREINAFTER CHARACTERIZED BY ANY COURT
OF COMPETENT JURISDICTION AS THE REPAYMENT OF PRINCIPAL AND INTEREST THEREON,
THIS SECTION 30.14 SHALL APPLY. ANY SUCH RENT OR PAYMENTS SO CHARACTERIZED AS
INTEREST MAY BE REFERRED TO HEREIN AS "INTEREST." ALL AGREEMENTS AMONG THE
PARTIES HERETO ARE HEREBY LIMITED BY THE PROVISIONS OF THIS PARAGRAPH WHICH
SHALL OVERRIDE AND CONTROL ALL SUCH AGREEMENTS, WHETHER NOW EXISTING OR
HEREAFTER ARISING AND WHETHER WRITTEN OR ORAL. IN NO WAY, NOR IN ANY EVENT OR
CONTINGENCY (INCLUDING WITHOUT LIMITATION PREPAYMENT OR ACCELERATION OF THE
MATURITY OF ANY OBLIGATION), SHALL ANY INTEREST TAKEN, RESERVED, CONTRACTED FOR,
CHARGED, OR RECEIVED UNDER THIS LEASE OR OTHERWISE, EXCEED THE MAXIMUM
NONUSURIOUS AMOUNT PERMISSIBLE UNDER APPLICABLE LAW. IF, FROM ANY POSSIBLE
CONSTRUCTION OF ANY OF THE OPERATIVE AGREEMENTS OR ANY OTHER DOCUMENT OR
AGREEMENT, INTEREST WOULD OTHERWISE BE PAYABLE IN EXCESS OF THE MAXIMUM
NONUSURIOUS AMOUNT, ANY SUCH CONSTRUCTION SHALL BE SUBJECT TO THE PROVISIONS OF
THIS PARAGRAPH AND SUCH AMOUNTS UNDER SUCH DOCUMENTS OR AGREEMENTS SHALL BE
AUTOMATICALLY REDUCED TO THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED UNDER
APPLICABLE LAW, WITHOUT THE NECESSITY OF EXECUTION OF ANY AMENDMENT OR NEW
DOCUMENT OR AGREEMENT. IF LESSOR SHALL EVER RECEIVE ANYTHING OF VALUE WHICH IS
CHARACTERIZED AS INTEREST WITH RESPECT TO THE OBLIGATIONS OWED HEREUNDER OR
UNDER APPLICABLE LAW AND WHICH WOULD, APART FROM THIS PROVISION, BE IN EXCESS OF
THE MAXIMUM LAWFUL AMOUNT, AN AMOUNT EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN
EXCESSIVE INTEREST SHALL, WITHOUT PENALTY, BE APPLIED TO THE REDUCTION OF THE
COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL AND NOT TO THE PAYMENT OF INTEREST,
OR REFUNDED TO LESSEE OR ANY OTHER PAYOR THEREOF, IF AND TO THE EXTENT

                                       41

<PAGE>   46

SUCH AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE EXCEEDS THE COMPONENT OF PAYMENTS
DEEMED TO BE PRINCIPAL. THE RIGHT TO DEMAND PAYMENT OF ANY AMOUNTS EVIDENCED BY
ANY OF THE OPERATIVE AGREEMENTS DOES NOT INCLUDE THE RIGHT TO RECEIVE ANY
INTEREST WHICH HAS NOT OTHERWISE ACCRUED ON THE DATE OF SUCH DEMAND, AND LESSOR
DOES NOT INTEND TO CHARGE OR RECEIVE ANY UNEARNED INTEREST IN THE EVENT OF SUCH
DEMAND. ALL INTEREST PAID OR AGREED TO BE PAID TO LESSOR SHALL, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, BE AMORTIZED, PRORATED, ALLOCATED, AND SPREAD
THROUGHOUT THE FULL STATED TERM (INCLUDING WITHOUT LIMITATION ANY RENEWAL OR
EXTENSION) OF THIS LEASE SO THAT THE AMOUNT OF INTEREST ON ACCOUNT OF SUCH
PAYMENTS DOES NOT EXCEED THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED BY APPLICABLE
LAW.

                            [signature pages follow]

                                       42

<PAGE>   47

         IN WITNESS WHEREOF, the parties have caused this Lease to be duly
executed and delivered as of the date first above written.

                                    FIRST SECURITY BANK, NATIONAL
                                    ASSOCIATION, not individually, but solely as
                                    the Owner Trustee under the RFMD Real Estate
                                    Trust 1999-1, as Lessor

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                           [signature pages continue]

                                                                 Lease Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   48

                                    RF MICRO DEVICES, INC., as Lessee

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                           [signature pages continue]

                                                                 Lease Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   49

Receipt of this original
counterpart of the foregoing
Lease is hereby acknowledged
as the date hereof

FIRST UNION NATIONAL BANK,
as the Agent

By:
   -------------------------------------
Name:
     -----------------------------------
Title:
      -----------------------------------

                              [signature pages end]

                                                                 Lease Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   50

                             EXHIBIT A TO THE LEASE

                            LEASE SUPPLEMENT NO. ___

         THIS LEASE SUPPLEMENT NO. ___ (this "Lease Supplement") dated as of
August __, 1999 between FIRST SECURITY BANK, NATIONAL ASSOCIATION, a national
banking association, not individually, but solely as the Owner Trustee under the
RFMD Real Estate Trust 1999-1, as lessor (the "Lessor"), and RF MICRO DEVICES,
INC., a [____________] corporation, as lessee (the "Lessee").

         WHEREAS, Lessor is the owner or will be the owner of the Property
described on Schedule 1 hereto (the "Leased Property") and wishes to lease the
same to Lessee;

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

         SECTION 1. DEFINITIONS; RULES OF USAGE. For purposes of this Lease
Supplement, capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in Appendix A to the Participation Agreement,
dated as of August __, 1999, among Lessee, Lessor, not individually, except as
expressly stated therein, but solely as the Owner Trustee under the RFMD Real
Estate Trust 1999-1, the various banks and other lending institutions which are
parties thereto from time to time, as the Holders, the various banks and other
lending institutions which are parties thereto from time to time, as the
Lenders, and First Union National Bank, as the Agent for the Lenders and
respecting the Security Documents, as the Agent for the Lenders and Holders, to
the extent of their interests, as such may be amended, modified, extended,
supplemented, restated and/or replaced from time to time.

         SECTION 2. THE PROPERTIES. Attached hereto as Schedule 1 is the
description of the Leased Property, with an Equipment Schedule attached hereto
as Schedule 1-A, an Improvement Schedule attached hereto as Schedule 1-B and [A
LEGAL DESCRIPTION OF THE LAND / A COPY OF THE GROUND LEASE] attached hereto as
Schedule 1-C. Effective upon the execution and delivery of this Lease Supplement
by Lessor and Lessee, the Leased Property shall be subject to the terms and
provisions of the Lease. Without further action, any and all additional
Equipment funded under the Operative Agreements and any and all additional
Improvements made to the Land shall be deemed to be titled to the Lessor and
subject to the terms and conditions of the Lease and this Lease Supplement.

         This Lease Supplement shall constitute a mortgage, deed of trust,
security agreement and financing statement under the laws of the state in which
the Leased Property is situated. The maturity date of the obligations secured
hereby shall be [___________] unless extended to not later than [___________].

<PAGE>   51

         For purposes of provisions of the Lease and this Lease Supplement
related to the creation and enforcement of the Lease and this Lease Supplement
as a security agreement and a fixture filing, Lessee is the debtor and Lessor is
the secured party. The mailing addresses of the debtor (Lessee herein) and of
the secured party (Lessor herein) from which information concerning security
interests hereunder may be obtained are set forth on the signature pages hereto.
A carbon, photographic or other reproduction of the Lease and this Lease
Supplement or of any financing statement related to the Lease and this Lease
Supplement shall be sufficient as a financing statement for any of the purposes
referenced herein.

         SECTION 3. USE OF PROPERTY. At all times during the Term with respect
to each Property, Lessee will comply with all obligations under and (to the
extent no Event of Default exists and provided, that such exercise will not
impair the value of such Property) shall be permitted to exercise all rights and
remedies under, all operation and easement agreements and related or similar
agreements applicable to such Property.

         SECTION 4. RATIFICATION; INCORPORATION BY REFERENCE. Except as
specifically modified hereby, the terms and provisions of the Lease and the
Operative Agreements are hereby ratified and confirmed and remain in full force
and effect. The Lease is hereby incorporated herein by reference as though
restated herein in its entirety.

         SECTION 5. ORIGINAL LEASE SUPPLEMENT. The single executed original of
this Lease Supplement marked "THIS COUNTERPART IS THE ORIGINAL EXECUTED
COUNTERPART" on the signature page thereof and containing the receipt of the
Agent therefor on or following the signature page thereof shall be the original
executed counterpart of this Lease Supplement (the "Original Executed
Counterpart"). To the extent that this Lease Supplement constitutes chattel
paper, as such term is defined in the Uniform Commercial Code as in effect in
any applicable jurisdiction, no security interest in this Lease Supplement may
be created through the transfer or possession of any counterpart other than the
Original Executed Counterpart.

         SECTION 6. GOVERNING LAW. THIS LEASE SUPPLEMENT SHALL BE GOVERNED BY
AND CONSTRUED, INTERPRETED TO AND ENFORCED IN ACCORDANCE WITH THE LAW OF THE
STATE OF [__________], EXCEPT TO THE EXTENT THE LAWS OF THE STATE WHERE A
PARTICULAR PROPERTY IS LOCATED ARE REQUIRED TO APPLY.

         SECTION 7. MORTGAGE; POWER OF SALE. Without limiting any other remedies
set forth in the Lease, in the event that a court of competent jurisdiction
rules that the Lease constitutes a mortgage, deed of trust or other secured
financing as is the intent of the parties, then Lessor and Lessee agree that
Lessee hereby grants a Lien against the Leased Property WITH POWER OF SALE, and
that, upon the occurrence of any Lease Event of Default, Lessor shall have the
power and authority, to the extent provided by law, after prior notice and lapse
of such time as may be required by law, to foreclose its interest (or cause such
interest to be foreclosed) in all or any part of the Leased Property.

                                      A-2

<PAGE>   52

         SECTION 8. COUNTERPART EXECUTION. This Lease Supplement may be executed
in any number of counterparts and by each of the parties hereto in separate
counterparts, all such counterparts together constituting but one (1) and the
same instrument.

         For purposes of the provisions of this Lease Supplement concerning this
Lease Supplement constituting a security agreement and fixture filing, the
addresses of the debtor (Lessee herein) and the secured party (Lessor herein),
from whom information may be obtained about this Lease Supplement, are as set
forth on the signature pages hereto.

         [The remainder of this page has been intentionally left blank.]

                                      A-3

<PAGE>   53

         IN WITNESS WHEREOF, each of the parties hereto has caused this Lease
Supplement to be duly executed by an officer thereunto duly authorized as of the
date and year first above written.

                                    FIRST SECURITY BANK, NATIONAL
                                    ASSOCIATION, not individually, but solely as
                                    the Owner Trustee under the RFMD Real Estate
                                    Trust 1999-1, as Lessor

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    First Security Bank, National Association
                                    79 South Main Street
                                    Third Floor
                                    Salt Lake City, Utah 84111
                                    Attn: Val T. Orton
                                          Vice President

                                    RF MICRO DEVICES, INC., as Lessee

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    [LESSEE ADDRESS]

                                    --------------------------------------------

                                    --------------------------------------------
                                    Attn:

Receipt of this original counterpart of the foregoing Lease Supplement is hereby
acknowledged as the date hereof.

                                    FIRST UNION NATIONAL BANK, as
                                    the Agent

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    First Union National Bank
                                    c/o First Union Securities, Inc.
                                    301 South College Street, DC-6
                                    Charlotte, North Carolina 28288-0166

                                      A-4

<PAGE>   54

                       [CONFORM TO STATE LAW REQUIREMENTS]

STATE OF _______________ )
                         )        ss:
COUNTY OF ______________ )

         The foregoing Lease Supplement was acknowledged before me, the
undersigned Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of FIRST SECURITY
BANK, NATIONAL ASSOCIATION, a national banking association, not individually,
but solely as the Owner Trustee under the RFMD Real Estate Trust 1999-1, on
behalf of the Owner Trustee.

[Notarial Seal]
                                             -----------------------------------
                                                    Notary Public
My commission expires: ____________

STATE OF _______________ )
                         )        ss:
COUNTY OF ______________ )

         The foregoing Lease Supplement was acknowledged before me, the
undersigned Notary Public, in the County of _________________ this _____ day of
______________, by ________________, as __________________ of [_______________,
a ________________] corporation, on behalf of the corporation.

[Notarial Seal]
                                             -----------------------------------
                                                    Notary Public
My commission expires: ____________

STATE OF _______________ )
                         )        ss:
COUNTY OF ______________ )

         The foregoing Lease Supplement was acknowledged before me, the
undersigned Notary Public, in the County of ________________ this ____ day of
___________, by _____________, as __________________ of FIRST UNION NATIONAL
BANK, a national banking association, as the Agent.

[Notarial Seal]
                                             -----------------------------------
                                                    Notary Public
My commission expires: ____________

                                      A-5

<PAGE>   55

                                   SCHEDULE 1
                          TO LEASE SUPPLEMENT NO. ____

                      (Description of the Leased Property)

                                      A-6

<PAGE>   56

                                  SCHEDULE 1-A
                          TO LEASE SUPPLEMENT NO. ____

                                   (Equipment)

                                      A-7

<PAGE>   57

                                  SCHEDULE 1-B
                          TO LEASE SUPPLEMENT NO. ____

                                 (Improvements)

                                      A-8

<PAGE>   58

                                  SCHEDULE 1-C
                          TO LEASE SUPPLEMENT NO. ____

                                    [(LAND)/
                                 (GROUND LEASE)]

                                      A-9

<PAGE>   59

                                                          EXHIBIT B TO THE LEASE

                    [MODIFY OR SUBSTITUTE SHORT FORM LEASE AS
                      NECESSARY FOR LOCAL LAW REQUIREMENTS]

Recordation requested by:

Moore & Van Allen, PLLC

After recordation return to:

Moore & Van Allen, PLLC (WMA)
100 North Tryon Street, Floor 47
Charlotte, NC  28202-4003
                                        Space above this line for Recorder's use

--------------------------------------------------------------------------------

                         MEMORANDUM OF LEASE AGREEMENT,
                   LEASE SUPPLEMENT NO. ____ AND DEED OF TRUST

         THIS MEMORANDUM OF LEASE AGREEMENT AND LEASE SUPPLEMENT NO. ____
("Memorandum"), dated as of [_____________, 199___], is by and between FIRST
SECURITY BANK, NATIONAL ASSOCIATION, a national banking association, not
individually, but solely as the Owner Trustee under the RFMD Real Estate Trust
1999-1, with an office at 79 South Main Street, Salt Lake City, Utah 84111
(hereinafter referred to as "Lessor") and [_______________, a __________]
corporation, with an office at [___________________] (hereinafter referred to as
"Lessee").

                                   WITNESSETH:

         That for value received, Lessor and Lessee do hereby covenant, promise
and agree as follows:

         1. DEMISED PREMISES AND DATE OF LEASE. Lessor has leased to Lessee, and
Lessee has leased from Lessor, for the Term (as hereinafter defined), certain
real property and other property located in [________________], which is
described in the attached Schedule 1 (the "Property"), pursuant to the terms of
a Lease Agreement between Lessor and Lessee dated as of [__________, 199__] (as
such may be amended, modified, extended, supplemented, restated and/or replaced
from time to time, "Lease") and a Lease Supplement No. _____ between Lessor and
Lessee dated as of ______________ (the "Lease Supplement").

<PAGE>   60

         The Lease and the Lease Supplement shall constitute a mortgage, deed of
trust and security agreement and financing statement under the laws of the state
in which the Property is situated. The maturity date of the obligations secured
thereby shall be ___________, unless extended to not later than ___________.

         For purposes of provisions of the Lease and the Lease Supplement
related to the creation and enforcement of the Lease and the Lease Supplement as
a security agreement and a fixture filing, Lessee is the debtor and Lessor is
the secured party. The mailing addresses of the debtor (Lessee herein) and of
the secured party (Lessor herein) from which information concerning security
interests hereunder may be obtained are as set forth on the signature pages
hereof. A carbon, photographic or other reproduction of this Memorandum or of
any financing statement related to the Lease and the Lease Supplement shall be
sufficient as a financing statement for any of the purposes referenced herein.

         2. TERM, RENEWAL, EXTENSION AND PURCHASE OPTION. The term of the Lease
for the Property ("Term") commenced as of __________, 19__ and shall end as of
_________, 19__, unless the Term is extended or earlier terminated in accordance
with the provisions of the Lease. The Lease contains provisions for renewal and
extension. The tenant has a purchase option under the Lease.

         3. TAX PAYER NUMBERS.

            Lessor's tax payer number:  __________________.

            Lessee's tax payer number:  __________________.

         4. MORTGAGE; POWER OF SALE. Without limiting any other remedies set
forth in the Lease, in the event that a court of competent jurisdiction rules
that the Lease constitutes a mortgage, deed of trust or other secured financing
as is the intent of the parties, then Lessor and Lessee agree that Lessee has
granted, pursuant to the terms of the Lease and the Lease Supplement, a Lien
against the Property WITH POWER OF SALE, and that, upon the occurrence and
during the continuance of any Lease Event of Default, Lessor shall have the
power and authority, to the extent provided by law, after prior notice and lapse
of such time as may be required by law, to foreclose its interest (or cause such
interest to be foreclosed) in all or any part of the Property.

         5. EFFECT OF MEMORANDUM. The purpose of this instrument is to give
notice of the Lease and the Lease Supplement and their respective terms,
covenants and conditions to the same extent as if the Lease and the Lease
Supplement were fully set forth herein. This Memorandum shall not modify in any
manner the terms, conditions or intent of the Lease or the Lease Supplement and
the parties agree that this Memorandum is not intended nor shall it be used to
interpret the Lease or the Lease Supplement or determine the intent of the
parties under the Lease or the Lease Supplement.

                                      B-2

<PAGE>   61

         [The remainder of this page has been intentionally left blank.]

                                      B-3

<PAGE>   62

         IN WITNESS WHEREOF, the parties hereto have duly executed this
instrument as of the day and year first written.

                                    LESSOR:

                                    FIRST SECURITY BANK, NATIONAL
                                    ASSOCIATION, not individually, but solely as
                                    the Owner Trustee under the RFMD Real Estate
                                    Trust 1999-1

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    First Security Bank, National Association
                                    79 South Main Street
                                    Third Floor
                                    Salt Lake City, Utah 84111
                                    Attn: Val T. Orton
                                          Vice President

                                    LESSEE:

                                    RF MICRO DEVICES, INC.

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    [LESSEE ADDRESS]

                                    --------------------------------------------

                                    --------------------------------------------
                                    Attn:

                                      B-4

<PAGE>   63

                                   SCHEDULE 1

                            (Description of Property)

                                      B-5

<PAGE>   64

                       [CONFORM TO STATE LAW REQUIREMENTS]

STATE OF _______________       )
                               )        ss:
COUNTY OF ______________       )

         The foregoing Memorandum of Lease Agreement and Lease Supplement No.
_____ was acknowledged before me, the undersigned Notary Public, in the County
of _________________ this _____ day of ______________, by ________________, as
__________________ of FIRST SECURITY BANK, NATIONAL ASSOCIATION, a national
banking association, not individually, but solely as the Owner Trustee under the
[_____ Real Estate Trust _____], on behalf of the Owner Trustee.

[Notarial Seal]
                                            ------------------------------------
                                            Notary Public
My commission expires: ____________

STATE OF _______________       )
                               )        ss:
COUNTY OF ______________       )

         The foregoing Memorandum of Lease Agreement and Lease Supplement No.
_____ was acknowledged before me, the undersigned Notary Public, in the County
of _________________ this _____ day of ______________, by ________________, as
__________________ of [_______________, a __________] corporation, on behalf of
the corporation.

[Notarial Seal]
                                            ------------------------------------
                                            Notary Public
My commission expires: ____________

                                      B-6<PAGE>   1

                                                                   EXHIBIT 10.11

--------------------------------------------------------------------------------

                        AMENDED, RESTATED AND REPLACEMENT
                                CREDIT AGREEMENT

                          Dated as of December 31, 1999

                                      among

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
                           not individually, except as
                            expressly stated herein,
                         but solely as the Owner Trustee
                    under the RFMD Real Estate Trust 1999-1,
                                as the Borrower,

                               The Several Lenders
                        from Time to Time Parties Hereto,

                                       and

                           FIRST UNION NATIONAL BANK,
                                  as the Agent

--------------------------------------------------------------------------------

<PAGE>   2

                                TABLE OF CONTENTS

                                                                            Page
SECTION 1.  DEFINITIONS........................................................1
         1.1 Definitions.......................................................1
         1.2 Interpretation....................................................1
SECTION 2.  AMOUNT AND TERMS OF COMMITMENTS....................................1
         2.1 Commitments.......................................................1
         2.2 Notes.............................................................2
         2.3 Procedure for Borrowing...........................................2
         2.4 Lender Unused Fees................................................3
         2.5 Termination or Reduction of Commitments...........................3
         2.6 Prepayments and Payments..........................................4
         2.7 Conversion and Continuation Options...............................5
         2.8 Interest Rates and Payment Dates..................................6
         2.9 Computation of Interest...........................................6
         2.10 Pro Rata Treatment and Payments..................................7
         2.11 Notice of Amounts Payable; Mandatory Assignment..................8
SECTION 3.  REPRESENTATIONS AND WARRANTIES.....................................9
SECTION 4.  CONDITIONS PRECEDENT...............................................9
         4.1 Conditions to Effectiveness.......................................9
         4.2 Conditions to Each Loan...........................................9
SECTION 5.  COVENANTS..........................................................9
         5.1 Other Activities..................................................9
         5.2 Ownership of Properties, Indebtedness............................10
         5.3 Disposition of Assets............................................10
         5.4 Compliance with Operative Agreements.............................10
         5.5 Further Assurances...............................................10
         5.6 Notices..........................................................10
         5.7 Discharge of Liens...............................................10
         5.8 Trust Agreement..................................................11
SECTION 6.  EVENTS OF DEFAULT.................................................11
SECTION 7.  THE AGENT.........................................................14
         7.1 Appointment......................................................14
         7.2 Delegation of Duties.............................................14
         7.3 Exculpatory Provisions...........................................14
         7.4 Reliance by the Agent............................................15
         7.5 Notice of Default................................................15
         7.6 Non-Reliance on the Agent and Other Lenders......................16
         7.7 Indemnification..................................................16
         7.8 The Agent in Its Individual Capacity.............................17
         7.9 Successor Agent..................................................17
         7.10 Actions of the Agent on Behalf of Holders.......................17
         7.11 The Agent's Duty of Care........................................17

                                       i

<PAGE>   3

SECTION 8.  MATTERS RELATING TO PAYMENT AND COLLATERAL........................18
         8.1 Collection and Allocation of Payments and Other Amounts..........18
         8.2 Certain Remedial Matters.........................................18
         8.3 Excepted Payments................................................18
SECTION 9.  MISCELLANEOUS.....................................................19
         9.1 Amendments and Waivers...........................................19
         9.2 Notices..........................................................19
         9.3 No Waiver; Cumulative Remedies...................................19
         9.4 Survival of Representations and Warranties.......................19
         9.5 Payment of Expenses and Taxes....................................19
         9.6 Successors and Assigns; Participations and Assignments...........20
         9.7 Participations...................................................20
         9.8 Assignments......................................................21
         9.9 The Register; Disclosure; Pledges to Federal Reserve Banks.......23
         9.10 Adjustments; Set-off............................................23
         9.11 Counterparts....................................................24
         9.12 Severability....................................................24
         9.13 Integration.....................................................24
         9.14 GOVERNING LAW...................................................25
         9.15 SUBMISSION TO JURISDICTION; VENUE; ARBITRATION..................25
         9.16 Acknowledgments.................................................25
         9.17 WAIVERS OF JURY TRIAL...........................................25
         9.18 Nonrecourse.....................................................25
         9.19 USURY SAVINGS PROVISION.........................................26

SCHEDULES

Schedule 2.1      Commitments and Addresses of Lenders

EXHIBITS

Exhibit A-1       Form of Tranche A Note
Exhibit A-2       Form of Tranche B Note
Exhibit B         Form of Assignment and Acceptance

                                       ii

<PAGE>   4

                        AMENDED, RESTATED AND REPLACEMENT
                                CREDIT AGREEMENT

         THIS AMENDED, RESTATED AND REPLACEMENT CREDIT AGREEMENT, dated as of
December 31, 1999 (as amended, modified, extended, supplemented, restated and/or
replaced from time to time, the "Agreement") is among FIRST SECURITY BANK,
NATIONAL ASSOCIATION, not individually, except as expressly stated herein, but
solely as the Owner Trustee under the RFMD Real Estate Trust 1999-1 (the "Owner
Trustee" or the "Borrower"), the several banks and other financial institutions
from time to time parties to this Agreement (the "Lenders") and FIRST UNION
NATIONAL BANK, a national banking association, as a Lender and as the agent for
the Lenders (the "Agent").

         The parties hereto hereby agree as follows:

                             SECTION 1. DEFINITIONS

         1.1 DEFINITIONS.

         For purposes of this Agreement, capitalized terms used in this
Agreement and not otherwise defined herein shall have the meanings assigned to
them in Appendix A to that certain Amended, Restated and Replacement
Participation Agreement dated as of December 31, 1999 (as amended, modified,
extended, supplemented, restated and/or replaced from time to time in accordance
with the applicable provisions thereof, the "Participation Agreement") among RF
Micro Devices, Inc., the Borrower, the various banks and other lending
institutions which are parties thereto from time to time, as the Holders, the
various banks and other lending institutions which are parties thereto from time
to time, as the Lenders, and First Union National Bank, as agent for the Lenders
and respecting the Security Documents, as the agent for the Lenders and the
Holders, to the extent of their interests. Unless otherwise indicated,
references in this Agreement to articles, sections, paragraphs, clauses,
appendices, schedules and exhibits are to the same contained in this Agreement.

         1.2 INTERPRETATION.

         The rules of usage set forth in Appendix A to the Participation
Agreement shall apply to this Agreement.

                   SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

         2.1 COMMITMENTS.

                  (a) Subject to the terms and conditions hereof, each of the
         Lenders severally agrees to make the portion of the Tranche A Loans and
         the Tranche B Loans to the Borrower from time to time during the
         Commitment Period in an amount up to such Lender's Commitment as is set
         forth adjacent to such Lender's name in Schedule 2.1

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         hereto for the purpose of enabling the Borrower to purchase the
         Properties and to pay Property Acquisition Costs, Property Costs and
         Transaction Expenses, provided, that the aggregate principal amount at
         any one (1) time outstanding with respect to each of the Tranche A
         Loans and the Tranche B Loans shall not exceed the amount of the
         Tranche A Commitments and the Tranche B Commitments respectively. Any
         prepayments of the Loans, whether mandatory or at the Borrower's
         election, shall not be subject to reborrowing except as set forth in
         Section 5.2(d) of the Participation Agreement.

                  (b) The Loans may from time to time be (i) Eurodollar Loans,
         (ii) ABR Loans, or (iii) a combination thereof, as determined by the
         Borrower and notified to the Agent in accordance with Sections 2.3 and
         2.7. In the event the Borrower fails to provide notice pursuant to
         Section 2.3, the Loan shall be an ABR Loan. Further, any Loans by the
         Lenders on a given date in an aggregate amount less than $100,000.00
         shall be ABR Loans, unless the remaining Available Commitment for the
         Lenders in the aggregate is less than $100,000.00, in which case, the
         Borrower may elect a Eurodollar Loan for such remaining amount.

                  (c) The Commitment of each Lender to make Tranche A Loans and
         Tranche B Loans shall be pro rata.

         2.2 NOTES.

         The Loans made by each Lender shall be evidenced by promissory notes of
the Borrower, substantially in the form of Exhibit A-1 in the case of the
Tranche A Loans (each, a "Tranche A Note") or Exhibit A-2 in the case of the
Tranche B Loans (each, a "Tranche B Note," and with the Tranche A Notes, the
"Notes"), with appropriate insertions as to payee and date, payable to the order
of such Lender and in a principal amount up to the Tranche A Commitment or
Tranche B Commitment, as the case may be, of such Lender. Each Lender is hereby
authorized to record the date, Type and amount of each Loan made by such Lender,
each continuation thereof, each conversion of all or a portion thereof to
another Type, and the date and amount of each payment or prepayment of principal
thereof on the schedule annexed to and constituting a part of its Note, and any
such recordation shall constitute prima facie evidence of the accuracy of the
information so recorded, provided, that the failure to make any such recordation
or any error in such recordation shall not affect the Borrower's obligations
hereunder or under such Note. Each Note shall (i) be dated the Initial Closing
Date, (ii) be stated to mature on the Maturity Date and (iii) provide for the
payment of principal in accordance with Section 2.6(d) and the payment of
interest in accordance with Section 2.8.

         2.3 PROCEDURE FOR BORROWING.

                  (a) The Borrower may borrow under the Commitments during the
         Commitment Period on any Business Day that an Advance may be requested
         pursuant to the terms of Section 5.2 of the Participation Agreement,
         provided, that the Borrower shall give the Agent irrevocable notice
         (which must be received by the Agent prior to 12:00 Noon, New York
         time, at least three (3) Business Days prior to the requested Borrowing

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         Date specifying (i) the amount to be borrowed (which on any date shall
         not be in excess of the then Available Commitments), (ii) the requested
         Borrowing Date, (iii) whether the borrowing is to be of Eurodollar
         Loans, ABR Loans or a combination thereof, (iv) if the borrowing is to
         be a combination of Eurodollar Loans and ABR Loans, the respective
         amounts of each Type of Loan and (v) the Interest Period applicable to
         each Eurodollar Loan. Pursuant to the terms of the Participation
         Agreement, the Borrower shall be deemed to have delivered such notice
         upon the delivery of a notice by the Construction Agent or the Lessee
         containing such required information. Upon receipt of any such notice
         from the Borrower, the Agent shall promptly notify each Lender thereof.
         Each Lender will make the amount of its pro rata share of each
         borrowing available to the Agent for the account of the Borrower at the
         office of the Agent specified in Section 9.2 prior to 12:00 Noon, New
         York time, on the Borrowing Date requested by the Borrower in funds
         immediately available to the Agent. Such borrowing will then be made
         available to the Borrower by the Agent crediting an account designated,
         subject to Section 9.1 of the Participation Agreement, by the Borrower
         on the books of such office with the aggregate of the amounts made
         available to the Agent by the Lenders and in like funds as received by
         the Agent. No amount of any Loan which is repaid or prepaid by the
         Borrower may be reborrowed hereunder, except as set forth in Section
         5.2(d) of the Participation Agreement.

                  (b) Interest accruing on each Loan during the Construction
         Period with respect to any Property shall, subject to the limitations
         set forth in Section 5.1(b) of the Participation Agreement be added to
         the principal amount of such Loan on the relevant Scheduled Interest
         Payment Date. On each such Scheduled Interest Payment Date, the Loan
         Property Cost and Construction Loan Property Cost shall be increased by
         the amount of interest added to the Loans.

         2.4 LENDER UNUSED FEES.

         Promptly after receipt from the Lessee of the payment of the Lender
Unused Fee payable pursuant to Section 7.4 of the Participation Agreement, the
Agent shall distribute such payments to the Lenders pro rata in accordance with
their respective Commitments.

         2.5 TERMINATION OR REDUCTION OF COMMITMENTS.

                  (a) The Borrower shall have the right, upon not less than
         three (3) Business Days' written notice to the Agent, to terminate the
         Commitments or, from time to time, to reduce the amount of the
         Commitments, provided, that (i) after giving effect to such reduction,
         the aggregate outstanding principal amount of the Loans shall not
         exceed the aggregate Commitments and (ii) such notice shall be
         accompanied by a certificate of the Construction Agent stating that the
         amount equal to ninety-seven percent (97%) of aggregate Budgeted Total
         Property Costs as of the date of such reduction does not exceed the
         aggregate amount of Available Commitments as of such date after giving
         effect to such reduction. Any such reduction (A) shall be in an amount
         equal to the lesser of (1) $1,000,000.00 (or a positive integer
         multiple thereof) or (2) the remaining Available

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         Commitments, (B) shall reduce permanently the Commitments then in
         effect and (C) shall be pro rata for the Commitments of all Lenders and
         pro rata between the Tranche A Loans and the Tranche B Loans.

                  (b) The Commitments respecting any particular Property shall
         automatically be reduced to zero (0) upon the occurrence of the Rent
         Commencement Date respecting such Property. On any date on which the
         Commitments shall automatically be reduced to zero (0) pursuant to
         Section 6, the Borrower shall prepay all outstanding Loans, together
         with accrued unpaid interest thereon and all other amounts owing
         thereunder.

         2.6 PREPAYMENTS AND PAYMENTS.

                  (a) Subject to Sections 11.2(e), 11.3 and 11.4 of the
         Participation Agreement, the Borrower may at any time and from time to
         time prepay the Loans, in whole or in part, without premium or penalty,
         upon at least three (3) Business Days' irrevocable notice to the Agent,
         specifying the date and amount of prepayment and whether the prepayment
         is of Eurodollar Loans, ABR Loans or a combination thereof, and, if a
         combination thereof, the amount allocable to each. Upon receipt of any
         such notice the Agent shall promptly notify each Lender thereof. If any
         such notice is given, the amount specified in such notice shall be due
         and payable on the date specified therein. Amounts prepaid may not be
         reborrowed, and shall reduce the Commitments and the Available
         Commitments, except in each case as set forth in Section 5.2(d) of the
         Participation Agreement. All Loans outstanding shall be due and payable
         in full on the Maturity Date.

                  (b) If on any date the Agent or the Lessor shall receive any
         payment in respect of (i) any Casualty, Condemnation or Environmental
         Violation pursuant to Sections 15.1(a) or 15.1(g) or Article XVI of the
         Lease (excluding any payments in respect thereof which are payable to
         the Lessee in accordance with the Lease), or (ii) the Termination Value
         of any Property in connection with the delivery of a Termination Notice
         pursuant to Article XVI of the Lease, or (iii) the Termination Value of
         any Property in connection with the exercise of the Purchase Option
         under Article XX of the Lease or the exercise of the option of the
         Lessor to transfer the Properties to the Lessee pursuant to Section
         20.3 of the Lease, or (iv) any payment required to be made or elected
         to be made by the Construction Agent to the Lessor pursuant to the
         terms of the Agency Agreement, then in each case, the Borrower shall
         pay such amounts to the Agent and the Agent shall be required to apply
         and pay such amounts in accordance with the provisions of Section
         8.7(b)(ii) of the Participation Agreement.

                  (c) Each prepayment of the Loans pursuant to Section 2.6(a)
         shall be allocated to reduce the respective Loan Property Costs of all
         Properties pro rata according to the Loan Property Costs of such
         Properties immediately before giving effect to such prepayment. Each
         prepayment of the Loans pursuant to Section 2.6(b) shall be allocated
         to reduce the Loan Property Cost of the Property or Properties subject
         to the respective Casualty, Condemnation, Environmental Violation,
         termination, purchase, transfer or other circumstance giving rise to
         such prepayment. Any amounts applied to reduce the

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         Loan Property Cost of any Construction Period Property pursuant to this
         paragraph (c) shall also be applied to reduce the Construction Loan
         Property Cost of such Property until such Construction Loan Property
         Cost has been reduced to zero (0).

                  (d) On each date set forth on Schedule 1 to the Participation
         Agreement, the Borrower shall repay the outstanding principal balance
         of the Tranche A Loans in part in an amount equal to the product of (i)
         the percentage set forth beside such date on such Schedule 1 to the
         Participation Agreement multiplied by (ii) the aggregate principal
         amount of Loans and Holder Advances expended for Equipment as set forth
         in the Completion Certificate. In the event the Rent Commencement Date
         occurs prior to February 13, 2001, then Schedule 1 to the Participation
         Agreement shall be amended to provide for a straight amortization of
         seventy-seven percent (77%) of Tranche A Loans expended for Equipment
         as such amendments are reasonably acceptable to the Agent. All such
         partial repayments of the principal balance of the Tranche A Loans
         pursuant to this Section 2.6(d) shall be applied to reduce the Loan
         Property Cost regarding the Tranche A Loans. If any such principal
         payment is required on a day that is not a Business Day, then such
         principal payment shall be due on the next succeeding Business Day.

         2.7 CONVERSION AND CONTINUATION OPTIONS.

                  (a) The Borrower may elect from time to time to convert
         Eurodollar Loans to ABR Loans by giving the Agent at least three (3)
         Business Days' prior irrevocable notice of such election, provided,
         that any such conversion of Eurodollar Loans may only be made on the
         last day of an Interest Period with respect thereto, and provided,
         further, to the extent an Event of Default has occurred and is
         continuing on the last day of any such Interest Period, the applicable
         Eurodollar Loan shall automatically be converted to an ABR Loan. The
         Borrower may elect from time to time to convert ABR Loans to Eurodollar
         Loans by giving the Agent at least three (3) Business Days' prior
         irrevocable notice of such election. Upon receipt of any such notice,
         the Agent shall promptly notify each Lender thereof. All or any part of
         outstanding Eurodollar Loans or ABR Loans may be converted as provided
         herein, provided, that (i) no ABR Loan may be converted into a
         Eurodollar Loan after the date that is one (1) month prior to the
         Maturity Date and (ii) such notice of conversion regarding any
         Eurodollar Loan shall contain an election by the Borrower of an
         Interest Period for such Eurodollar Loan to be created by such
         conversion and such Interest Period shall be in accordance with the
         terms of the definition of the term "Interest Period" including without
         limitation subparagraphs (A) through (D) thereof.

                  (b) Subject to the restrictions set forth in Section 2.3
         hereof, any Eurodollar Loan may be continued as such upon the
         expiration of the current Interest Period with respect thereto by the
         Borrower giving irrevocable notice to the Agent, in accordance with the
         applicable notice provision for the conversion of ABR Loans to
         Eurodollar Loans set forth herein, of the length of the next Interest
         Period to be applicable to such Loans, provided, that no Eurodollar
         Loan may be continued as such after the date that is one (1) month
         prior to the Maturity Date, provided, further, no Eurodollar Loans may
         be

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         continued as such if an Event of Default has occurred and is continuing
         as of the last day of the Interest Period for such Eurodollar Loan, and
         provided, further, that if the Borrower shall fail to give any required
         notice as described above or otherwise herein, or if such continuation
         is not permitted pursuant to the proceeding proviso, such Loan shall
         automatically be converted to an ABR Loan on the last day of such then
         expiring Interest Period.

         2.8 INTEREST RATES AND PAYMENT DATES.

                  (a) The Loans outstanding hereunder from time to time shall
         bear interest at a rate per annum equal to either (i) with respect to a
         Eurodollar Loan, the Eurodollar Rate determined for the applicable
         Interest Period plus the Applicable Percentage or (ii) with respect to
         an ABR Loan, the ABR plus the Applicable Percentage, as selected by the
         Borrower in accordance with the provisions hereof; provided, however,
         (A) upon delivery by the Agent of the notice described in Section
         2.9(c), the Loans of each of the Lenders shall bear interest at the ABR
         plus the Applicable Percentage applicable from time to time from and
         after the dates and during the periods specified in Section 2.9(c), (B)
         upon the delivery by a Lender of the notice described in Section
         11.3(f) of the Participation Agreement, the Loans of such Lender shall
         bear interest at the ABR plus the Applicable Percentage applicable from
         time to time from and after the dates and during the periods specified
         in Section 11.3(f) of the Participation Agreement and (C) in such other
         circumstances as expressly provided herein, the Loans shall bear
         interest at the ABR plus the Applicable Percentage.

                  (b) If all or a portion of (i) the principal amount of any
         Loan, (ii) any interest payable thereon or (iii) any other amount
         payable hereunder shall not be paid when due (whether at the stated
         maturity, by acceleration or otherwise), such overdue amount shall bear
         interest at a rate per annum which is the lesser of (x) the then
         current rate of interest respecting such payment plus two percent (2%)
         and (y) the highest interest rate permitted by applicable law, in each
         case from the date of such non-payment until such amount is paid in
         full (whether after or before judgment).

                  (c) Interest shall be payable in arrears on the applicable
         Scheduled Interest Payment Date, provided, that (i) interest accruing
         pursuant to paragraph (b) of this Section 2.8 shall be payable from
         time to time on demand and (ii) each prepayment of the Loans shall be
         accompanied by accrued interest to the date of such prepayment on the
         amount prepaid.

         2.9 COMPUTATION OF INTEREST.

                  (a) Whenever it is calculated on the basis of the Prime
         Lending Rate, interest shall be calculated on the basis of a year of
         three hundred sixty-five (365) days (or three hundred sixty-six (366)
         days, as the case may be) for the actual days elapsed; and, otherwise,
         interest shall be calculated on the basis of a year of three hundred
         sixty (360) days for the actual days elapsed. The Agent shall as soon
         as practicable notify the

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         Borrower and the Lenders of each determination of a Eurodollar Rate.
         Any change in the interest rate on a Loan resulting from a change in
         the ABR or the Eurocurrency Reserve Requirements shall become effective
         as of the day on which such change becomes effective. The Agent shall
         as soon as practicable notify the Borrower and the Lenders of the
         effective date and the amount of each such change in interest rate.

                  (b) Each determination of an interest rate by the Agent
         pursuant to any provision of this Agreement shall be conclusive and
         binding on the Borrower and the Lenders in the absence of manifest
         error.

                  (c) If the Eurodollar Rate cannot be determined by the Agent
         in the manner specified in the definition of the term "Eurodollar
         Rate", the Agent shall give telecopy or telephonic notice thereof to
         the Borrower and the Lenders as soon as practicable thereafter. Until
         such time as the Eurodollar Rate can be determined by the Agent in the
         manner specified in the definition of such term, no further Eurodollar
         Loans shall be made or shall be continued as such at the end of the
         then current Interest Period nor shall the Borrower have the right to
         convert ABR Loans to Eurodollar Loans.

         2.10 PRO RATA TREATMENT AND PAYMENTS.

                  (a) Each borrowing by the Borrower from the Lenders hereunder
         and any reduction of the Commitments of the Lenders shall be made pro
         rata according to their respective Commitments. Subject to the
         provisions of Section 8.7 of the Participation Agreement and Section
         2.11(b) hereof, each payment (including without limitation each
         prepayment) by the Borrower on account of principal of and interest on
         the Loans shall be made pro rata according to the respective
         outstanding principal amounts on the Loans then held by the Lenders.
         All payments (including without limitation prepayments) to be made by
         the Borrower hereunder and under the Notes, whether on account of
         principal, interest or otherwise, shall be made without setoff or
         counterclaim and shall be made prior to 12:00 Noon, New York time, on
         the due date thereof to the Agent, for the account of the Lenders, at
         the Agent's office specified in Section 9.2, in Dollars and in
         immediately available funds. The Agent shall distribute such payments
         to the Lenders promptly upon receipt in like funds as received. If any
         payment hereunder becomes due and payable on a day other than a
         Business Day, such payment shall be extended to the next succeeding
         Business Day; provided, however, if such payment includes an amount of
         interest calculated with reference to the Eurodollar Rate and the
         result of such extension would be to extend such payment into another
         calendar month, then such payment shall be made on the immediately
         preceding Business Day. In the case of any extension of any payment of
         principal pursuant to the preceding two (2) sentences, interest thereon
         shall be payable at the then applicable rate during such extension.

                  (b) Unless the Agent shall have been notified in writing by
         any Lender prior to a borrowing that such Lender will not make its
         share of such borrowing available to the Agent, the Agent may assume
         that such Lender is making such amount available to the Agent, and the
         Agent may, in reliance upon such assumption, make available to the

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         Borrower a corresponding amount. If such amount is not made available
         to the Agent by the required time on the Borrowing Date therefor, such
         Lender shall pay to the Agent, on demand, such amount with interest
         thereon at a rate equal to the daily average Federal Funds Effective
         Rate for the period until such Lender makes such amount immediately
         available to the Agent. A certificate of the Agent submitted to any
         Lender with respect to any amounts owing under this Section 2.10(b)
         shall be conclusive in the absence of manifest error. If such Lender's
         share of such borrowing is not made available to the Agent by such
         Lender within three (3) Business Days of such Borrowing Date, the Agent
         shall also be entitled to recover such amount with interest thereon at
         the rate as set forth above on demand from the Borrower.

         2.11 NOTICE OF AMOUNTS PAYABLE; MANDATORY ASSIGNMENT.

                  (a) In the event that any Lender becomes aware that any
         amounts are or will be owed to it pursuant to Sections 11.2(e) or 11.3
         of the Participation Agreement or that it is unable to make Eurodollar
         Loans, then it shall promptly notify the Borrower, the Lessee and the
         Agent thereof and, as soon as possible thereafter, such Lender shall
         submit to the Borrower (with a copy to the Agent) a certificate
         indicating the amount owing to it and the calculation thereof. The
         amounts set forth in such certificate shall be prima facie evidence of
         the obligations of the Borrower hereunder.

                  (b) In the event that any Lender delivers to the Borrower a
         certificate in accordance with Section 2.11(a) in connection with
         amounts payable pursuant to Sections 11.2(e) or 11.3 of the
         Participation Agreement or such Lender is required to make Loans as ABR
         Loans in accordance with Section 11.3(d) of the Participation Agreement
         then, subject to Section 9.1 of the Participation Agreement, the
         Borrower may, at its own expense (provided, such amounts shall be
         reimbursed or paid entirely (as elected by the Borrower) by the Lessee,
         as Supplemental Rent) and in the discretion of the Borrower, (i)
         require such Lender to transfer or assign, in whole or (with such
         Lender's consent) in part, without recourse (in accordance with Section
         9.8), all or (with such Lender's consent) part of its interests, rights
         (except for rights to be indemnified for actions taken while a party
         hereunder) and obligations under this Agreement to a replacement bank
         or institution if the Borrower (subject to Section 9.1 of the
         Participation Agreement), with the full cooperation of such Lender, can
         identify a Person who is ready, willing and able to be such replacement
         bank or institution with respect thereto and such replacement bank or
         institution (which may be another Lender) shall assume such assigned
         obligations, or (ii) during such time as no Default or Event of Default
         has occurred and is continuing, terminate the Commitment of such Lender
         and prepay all outstanding Loans of such Lender; provided, however,
         that (x) subject to Section 9.1 of the Participation Agreement, the
         Borrower or such replacement bank or institution, as the case may be,
         shall have paid to such Lender in immediately available funds the
         principal of and interest accrued to the date of such payment on the
         Loans made by it hereunder and all other amounts owed to it hereunder
         (and, if such Lender is also a Holder, all Holder Advances and Holder
         Yield accrued and unpaid thereon), (y) any termination of Commitments
         shall be subject to the terms of Section 2.5(a) and (z) such assignment
         or termination of the Commitment of

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         such Lender and prepayment of Loans does not conflict with any law,
         rule or regulation or order of any court or Governmental Authority.

                    SECTION 3. REPRESENTATIONS AND WARRANTIES

         To induce the Agent and the Lenders to enter into this Agreement and to
make the Loans, each of the Trust Company and the Owner Trustee hereby makes and
affirms the representations and warranties set forth in Section 6.1 of the
Participation Agreement to the same extent as if such representations and
warranties were set forth in this Agreement in their entirety.

                         SECTION 4. CONDITIONS PRECEDENT

         4.1 CONDITIONS TO EFFECTIVENESS.

         The effectiveness of this Agreement is subject to the satisfaction of
all conditions precedent set forth in Section 5.3 of the Participation Agreement
required by said Section to be satisfied on or prior to the Initial Closing
Date.

         4.2 CONDITIONS TO EACH LOAN.

         The agreement of each Lender to make any Loan requested to be made by
it on any date is subject to the satisfaction of all conditions precedent set
forth in Section 5.3 and 5.4 of the Participation Agreement required by said
Sections to be satisfied on or prior to the date of the applicable Loan.

         Each borrowing by the Borrower hereunder shall constitute a
representation and warranty by the Borrower as of the date of such Loan that the
conditions contained in this Section 4.2 have been satisfied.

                              SECTION 5. COVENANTS

         Unless the Agent and each Lender has otherwise given its express
written consent during such period that any Loan or Note remains outstanding and
unpaid or any other amount is owing to any Lender or the Agent hereunder:

         5.1 OTHER ACTIVITIES.

         The Borrower shall not conduct, transact or otherwise engage in, or
commit to transact, conduct or otherwise engage in, any business or operations
other than the entry into, and exercise of rights and performance of obligations
in respect of, the Operative Agreements and other activities incidental or
related to the foregoing.

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         5.2 OWNERSHIP OF PROPERTIES, INDEBTEDNESS.

         The Borrower shall not own, lease, manage or otherwise operate any
properties or assets other than in connection with the activities described in
Section 5.1, or incur, create, assume or suffer to exist any Indebtedness or
other consensual liabilities or financial obligations other than as may be
incurred, created or assumed or as may exist in connection with the activities
described in Section 5.1 (including without limitation the Loans and other
obligations incurred by the Borrower hereunder).

         5.3 DISPOSITION OF ASSETS.

         The Borrower shall not convey, sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets, whether now owned
or hereafter acquired, except to the extent expressly contemplated by the
Operative Agreements.

         5.4 COMPLIANCE WITH OPERATIVE AGREEMENTS.

         The Borrower shall at all times (a) observe and perform all of the
covenants, conditions and obligations required to be performed by it (whether in
its capacity as the Lessor, the Owner Trustee or otherwise) under each Operative
Agreement to which it is a party and (b) observe and perform, or cause to be
observed and performed, all of the covenants, conditions and obligations of the
Lessor under the Lease, even in the event that the Lease is terminated at stated
expiration following a Lease Event of Default or otherwise.

         5.5 FURTHER ASSURANCES.

         At any time and from time to time, upon the written request of the
Agent, and at the expense of the Borrower (provided, such amounts shall be
reimbursed or paid entirely (as elected by the Borrower) by the Lessee, as
Supplemental Rent), the Borrower will promptly and duly execute and deliver such
further instruments and documents and take such further action as the Agent or
the Majority Lenders may reasonably request for the purpose of obtaining or
preserving the full benefits of this Agreement and the other Operative
Agreements and of the rights and powers herein or therein granted.

         5.6 NOTICES.

         If on any date, a Responsible Officer of the Borrower shall obtain
actual knowledge of the occurrence of a Default or Event of Default, the
Borrower will give written notice thereof to the Agent within five (5) Business
Days after such date.

         5.7 DISCHARGE OF LIENS.

         Neither the Borrower nor the Trust Company will create or permit to
exist at any time, and will, at its own expense, promptly take such action as
may be necessary duly to discharge, or cause to be discharged, all Lessor Liens
attributable to it, provided, that the Borrower and the

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Trust Company shall not be required to discharge any Lessor Lien while the same
is being contested in good faith by appropriate proceedings diligently
prosecuted so long as such proceedings shall not involve any material danger of
impairment of any of the Liens contemplated by the Security Documents or of the
sale, forfeiture or loss of, and shall not materially interfere with the
disposition of, any Property or title thereto or any interest therein or the
payment of Rent.

         5.8 TRUST AGREEMENT.

         Without prejudice to any right under the Trust Agreement of the Owner
Trustee to resign, the Owner Trustee (a) agrees not to terminate or revoke the
trust created by the Trust Agreement except as permitted by Article VIII of the
Trust Agreement, (b) agrees not to amend, supplement, terminate, revoke or
otherwise modify any provision of the Trust Agreement in any manner which could
reasonably be expected to have an adverse effect on the rights or interests of
the Agent or the Lenders hereunder or under the other Operative Agreements and
(c) agrees to comply with all of the terms of the Trust Agreement.

                          SECTION 6. EVENTS OF DEFAULT

         Upon the occurrence of any of the following specified events (each an
"Event of Default"):

                  (a) Except as provided in Sections 6(c), the Borrower shall
         default in the payment when due of any principal on the Loans or
         default in the payment when due of any interest on the Loans, and in
         either such case, such default shall continue for three (3) or more
         days; or

                  (b) Except as provided in Sections 6(a) and 6(c), the Borrower
         shall default, and such default shall continue for three (3) or more
         days, in the payment of any amount owing under any Credit Document; or

                  (c) (i) The Borrower shall default in the payment of any
         amount due on the Maturity Date owing under any Credit Document or (ii)
         the Borrower shall default in the payment when due of any principal or
         interest on the Loans payable with regard to any obligation of Lessee
         to pay Termination Value when due or to pay Basic Rent or Supplemental
         Rent at such time as any Termination Value is due; or

                  (d) The Borrower shall default in the due performance or
         observance by it of any term, covenant or agreement contained in any
         Credit Document to which it is a party (other than those referred to in
         paragraphs (a), (b) and (c) above), provided, that in the case of any
         such default under Sections 5.4, 5.5 or 5.8(c), such default shall have
         continued unremedied for a period of at least fifteen (15) days after
         notice to the Borrower by the Agent or the Majority Lenders, provided,
         further, if any such default under Sections 5.4, 5.5 or 5.8(c) is not
         capable of remedy within such fifteen (15) day period but may be
         remedied with further diligence and if the Borrower has and continues

                                       11

<PAGE>   15

         to pursue diligently such remedy, then the Borrower shall be granted
         additional time to pursue such remedy but in no event more than an
         additional thirty (30) days.

                  (e) Any representation, warranty or statement made or deemed
         made by the Borrower herein or in any other Credit Document or by the
         Borrower or the Lessee in the Participation Agreement, or in any
         statement or certificate delivered or required to be delivered pursuant
         hereto or thereto, shall prove to be untrue in any material respect on
         the date as of which made or deemed made; or

                  (f) (i) Any Lease Event of Default shall have occurred and be
         continuing, or (ii) the Owner Trustee shall default in the due
         performance or observance by it of any term, covenant or agreement
         contained in the Participation Agreement or in the Trust Agreement to
         or for the benefit of the Agent or a Lender, provided, that in the case
         of this clause (ii) such default shall have continued unremedied for a
         period of at least fifteen (15) days after notice to the Owner Trustee
         and Lessee by the Agent or the Majority Lenders, provided, further,
         that in the case of this clause (ii), such default is not capable of
         remedy within such fifteen (15) day period but may be remedied with
         further diligence and if the Borrower has and continues to pursue
         diligently such remedy, then the Borrower shall be granted additional
         time to pursue such remedy but in no event more than an additional
         thirty (30) days; or

                  (g) The Borrower shall commence a voluntary case concerning
         itself under the Bankruptcy Code or an involuntary case is commenced
         against the Borrower and the petition is not contravened within ten
         (10) days after commencement of the case or an involuntary case is
         commenced against the Borrower and the petition is not dismissed within
         sixty (60) days after commencement of the case; or a custodian (as
         defined in the Bankruptcy Code) is appointed for, or takes charge of,
         all or substantially all of the property of the Borrower; or the
         Borrower commences any other proceeding under any reorganization,
         arrangement, adjustment of debt, relief of debtors, dissolution,
         insolvency or liquidation or similar law of any jurisdiction whether
         now or hereafter in effect relating to the Borrower, or there is
         commenced against the Borrower any such proceeding which remains
         undismissed for a period of sixty (60) days; or the Borrower is
         adjudicated insolvent or bankrupt, or any order of relief or other
         order approving any such case or proceeding is entered; or the Borrower
         suffers any appointment of any custodian or the like for it or any
         substantial part of its property to continue undischarged or unstayed
         for a period of sixty (60) days; or the Borrower makes a general
         assignment for the benefit of creditors; or any corporate or
         partnership action is taken by the Borrower for the purpose of
         effecting any of the foregoing; or

                  (h) Any Security Document shall cease to be in full force and
         effect, or shall cease to give the Agent the Liens, rights, powers and
         privileges purported to be created thereby (including without
         limitation a first priority perfected security interest in, and Lien
         on, all of the Properties), in favor of the Agent on behalf of the
         Lenders and the Holders, superior to and prior to the rights of all
         third Persons and subject to no other

                                       12

<PAGE>   16

         Liens (except in each case to the extent expressly permitted herein or
         in any Operative Agreement) other than any Ground Lease; or

                  (i) The Lease shall cease to be enforceable against the
         Lessee; or

                  (j) One (1) or more judgments or decrees shall be entered
         against the Borrower involving a liability of $100,000.00 or more in
         the aggregate for all such judgments and decrees for the Borrower and
         any such judgments or decrees shall not have been vacated, discharged
         or stayed or bonded pending appeal within sixty (60) days from the
         entry thereof,

then, and in any such event, (A) if such event is an Event of Default specified
in paragraph (g) above with respect to the Borrower, automatically the
Commitments shall immediately terminate and the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the Notes
shall immediately become due and payable, and (B) if such event is any other
Event of Default, either or both of the following actions may be taken: (i) with
the consent of the Majority Lenders, the Agent may, or upon the request of the
Majority Lenders, the Agent shall, by notice to the Borrower declare the
Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate; and (ii) with the consent of the Majority Lenders, the
Agent may, or upon the request of the Majority Lenders, the Agent shall, by
notice to the Borrower, declare the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement and the Notes to be
due and payable forthwith, whereupon the same shall immediately become due and
payable (any of the foregoing occurrences or actions referred to in clause (A)
or (B) above, an "Acceleration"). Except as expressly provided above in this
Section 6, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

         Upon the occurrence of any Event of Default and at any time thereafter
so long as any Event of Default shall be continuing, the Agent shall, upon the
written instructions of the Majority Secured Parties, exercise any or all of the
rights and powers and pursue any and all of the remedies available to it
hereunder and (subject to the terms thereof) under the other Credit Documents,
the Lease and the other Operative Agreements and shall have any and all rights
and remedies available under the Uniform Commercial Code or any provision of
law.

         Upon the occurrence of any Event of Default and at any time thereafter
so long as any Event of Default shall be continuing, the Agent may, and upon
request of the Majority Secured Parties shall, proceed to protect and enforce
this Agreement, the Notes, the other Credit Documents and the Lease by suit or
suits or proceedings in equity, at law or in bankruptcy, and whether for the
specific performance of any covenant or agreement herein contained or in
execution or aid of any power herein granted, or for foreclosure hereunder, or
for the appointment of a receiver or receivers for the Property or for the
recovery of judgment for the indebtedness secured thereby or for the enforcement
of any other proper, legal or equitable remedy available under applicable laws.

                                       13

<PAGE>   17

         The Borrower shall be liable for any and all accrued and unpaid amounts
due hereunder before, after or during the exercise of any of the foregoing
remedies, including without limitation all reasonable legal fees and other
reasonable costs and expenses incurred by the Agent or any Lender by reason of
the occurrence of any Event of Default or the exercise of remedies with respect
thereto.

                              SECTION 7. THE AGENT

         7.1 APPOINTMENT.

         Each Lender hereby irrevocably designates and appoints the Agent as the
agent of such Lender under this Agreement and the other Operative Agreements,
and each such Lender irrevocably authorizes the Agent, in such capacity, to
execute the Operative Agreements as agent for and on behalf of such Lender, to
take such action on behalf of such Lender under the provisions of this Agreement
and the other Operative Agreements and to exercise such powers and perform such
duties as are expressly delegated to the Agent by the terms of this Agreement
and other Operative Agreements, together with such other powers as are
reasonably incidental thereto. Without limiting the generality of the foregoing,
each of the Lenders hereby specifically acknowledges the terms and provisions of
the Participation Agreement and directs the Agent to exercise such powers, make
such decisions and otherwise perform such duties as are delegated to the Agent
thereunder without being required to obtain any specific consent with respect
thereto from any Lender, unless the matter under consideration is a Unanimous
Vote Matter or otherwise requires the consent of the Majority Lenders and/or the
Majority Secured Parties. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Operative Agreement or otherwise exist against the Agent.

         7.2 DELEGATION OF DUTIES.

         The Agent may execute any of its duties under this Agreement and the
other Operative Agreements by or through agents or attorneys-in-fact and shall
be entitled to advice of counsel concerning all matters pertaining to such
duties. The Agent shall not be responsible for the negligence or misconduct of
any agents or attorneys-in-fact selected by it with reasonable care.

         7.3 EXCULPATORY PROVISIONS.

         Neither the Agent nor any of its officers, directors, employees,
agents, attorneys-in-fact or Affiliates shall be (a) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Operative Agreement (except for its
or such Person's own gross negligence or willful misconduct) or (b) responsible
in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or the Lessee or any officer
thereof contained in this Agreement or any other Operative Agreement or in any
certificate, report, statement or other document referred to or

                                       14

<PAGE>   18

provided for in, or received by the Agent under or in connection with, this
Agreement or any other Operative Agreement or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Operative Agreement or for any failure of the Borrower or the Lessee
to perform its obligations hereunder or thereunder. The Agent shall not be under
any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement or any other Operative Agreement, or to inspect the properties, books
or records of the Borrower or the Lessee.

         7.4 RELIANCE BY THE AGENT.

         The Agent shall be entitled to rely, and shall be fully protected in
relying, upon any Note, writing, resolution, notice, consent, certificate,
affidavit, letter, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice
and statements of legal counsel (including without limitation counsel to the
Borrower or the Lessee), independent accountants and other experts selected by
the Agent. The Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Agent. The Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Operative Agreement unless it shall first receive such advice or
concurrence of the Majority Lenders, the Majority Secured Parties or all Secured
Parties, as the case may be, as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. The Agent shall in all cases be fully protected in acting, or
in refraining from acting, under this Agreement and the other Operative
Agreements in accordance with a request of the Majority Lenders, the Majority
Secured Parties or all Secured Parties, as the case may be, and such and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Notes (or all Secured Parties, as the case
may be).

         7.5 NOTICE OF DEFAULT.

         The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless the Agent has
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a "notice of default". In the event that the Agent receives such a
notice, the Agent shall give notice thereof to the Lenders. The Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Majority Secured Parties; provided, that unless and
until the Agent shall have received such directions, the Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Secured Parties; provided, further, the foregoing shall
not limit (a) the rights of the Majority Secured Parties to elect remedies as
set forth in Section 6 and/or (b) the rights of the Majority Secured Parties or
all Secured Parties, as the case may be, as described in the Participation
Agreement (including without limitation Sections 8.2(h) and 8.6 of the
Participation Agreement).

                                       15

<PAGE>   19

         7.6 NON-RELIANCE ON THE AGENT AND OTHER LENDERS.

         Each Lender expressly acknowledges that neither the Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the Agent
hereinafter taken, including without limitation any review of the affairs of the
Borrower or the Lessee, shall be deemed to constitute any representation or
warranty by the Agent to any Lender. Each Lender represents to the Agent that it
has, independently and without reliance upon the Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and the
Lessee and made its own decision to make its Loans hereunder and enter into this
Agreement. Each Lender also represents that it will, independently and without
reliance upon the Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Operative Agreements, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrower and the Lessee. Except for notices, reports and other documents
expressly required to be furnished to the Lenders by the Agent hereunder, the
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, operations, property,
condition (financial or otherwise), prospects or creditworthiness of the
Borrower or the Lessee which may come into the possession of the Agent or any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

         7.7 INDEMNIFICATION.

         The Lenders agree to indemnify the Agent, in its capacity as such (to
the extent not reimbursed by the Borrower and without limiting the obligation of
the Borrower to do so), ratably according to their respective Commitment
Percentages in effect on the date on which indemnification is sought under this
Section 7.7 (or, if indemnification is sought after the date upon which the
Commitments shall have terminated and the Loans shall have been paid in full,
ratably in accordance with their Commitment Percentages immediately prior to
such date), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including without limitation at
any time following the payment of the Notes) be imposed on, incurred by or
asserted against any of them in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Operative Agreements or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by any of them
under or in connection with any of the foregoing; provided, that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the gross negligence or willful misconduct of the Agent.
The agreements in this Section 7.7 shall survive the payment of the Notes and
all other amounts payable hereunder.

                                       16

<PAGE>   20

         7.8 THE AGENT IN ITS INDIVIDUAL CAPACITY.

         The Agent and its Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower or the Lessee as
though the Agent were not the Agent hereunder and under the other Operative
Agreements. With respect to its Loans made or renewed by it and any Note issued
to it, the Agent shall have the same rights and powers under this Agreement and
the other Operative Agreements as any Lender and may exercise the same as though
it were not the Agent, and the terms "Lender" and "Lenders" shall include the
Agent in its individual capacity.

         7.9 SUCCESSOR AGENT.

         The Agent may resign at any time as the Agent upon thirty (30) days'
notice to the Lenders, the Borrower and, so long as no Lease Event of Default
shall have occurred and be continuing, the Lessee. If the Agent shall resign as
the Agent under this Agreement, the Majority Lenders shall appoint from among
the Lenders a successor Agent which successor Agent shall be subject to the
approval of the Borrower and, so long as no Lease Event of Default shall have
occurred and be continuing, the Lessee, such approval not to be unreasonably
withheld or delayed. If no successor Agent is appointed prior to the effective
date of the resignation of the resigning Agent, the Agent may appoint, after
consulting with the Lenders and subject to the approval of the Borrower and, so
long as no Lease Event of Default shall have occurred and be continuing, the
Lessee, such approval not to be unreasonably withheld or delayed, a successor
Agent from among the Lenders. If no successor Agent has accepted appointment as
the Agent by the date which is thirty (30) days following a retiring Agent's
notice of resignation, the retiring Agent's notice of resignation shall
nevertheless thereupon become effective and the Lenders shall perform all of the
duties of the Agent until such time, if any, as the Majority Lenders appoint a
successor Agent, as provided for above. Upon the effective date of such
resignation, only such successor Agent shall succeed to all the rights, powers
and duties of the retiring Agent and the term "Agent" shall mean such successor
agent and the retiring Agent's rights, powers and duties in such capacity shall
be terminated. After any retiring Agent resigns hereunder as the Agent, the
provisions of this Article VII and Section 9.5 shall inure to their respective
benefit as to any actions taken or omitted to be taken by it while it was the
Agent under this Agreement.

         7.10 ACTIONS OF THE AGENT ON BEHALF OF HOLDERS.

         The parties hereto specifically acknowledge and consent to the Agent's
acting on behalf of the Holders as provided in the Participation Agreement, and,
in any such case, the Lenders acknowledge that the Holders shall be entitled to
vote as "Secured Parties" hereunder to the extent required or permitted by the
Operative Agreements (including without limitation Sections 8.2(h) and 8.6 of
the Participation Agreement).

         7.11 THE AGENT'S DUTY OF CARE.

         Other than the exercise of reasonable care to assure the safe custody
of the Collateral while being held by the Agent hereunder or under any other
Operative Agreement, the Agent

                                       17

<PAGE>   21

shall have no duty or liability to preserve rights pertaining thereto, it being
understood and agreed that the Lessee shall be responsible for preservation of
all rights in the Collateral, and the Agent shall be relieved of all
responsibility for the Collateral upon surrendering it or tendering the
surrender of it to the Lessee. The Agent shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral in its
possession if the Collateral is accorded treatment substantially equal to that
which the Agent accords its own property, which shall be no less than the
treatment employed by a reasonable and prudent agent in the industry, it being
understood that the Agent shall not have responsibility for taking any necessary
steps to preserve rights against any parties with respect to any of the
Collateral.

              SECTION 8. MATTERS RELATING TO PAYMENT AND COLLATERAL

         8.1 COLLECTION AND ALLOCATION OF PAYMENTS AND OTHER AMOUNTS.

         The Lessee, the Construction Agent, the Agent, the Lenders, the Holders
and the Borrower have agreed pursuant to the terms of Section 8.7 of the
Participation Agreement to a procedure for the allocation and distribution of
certain payments and distributions, including without limitation the proceeds of
Collateral.

         8.2 CERTAIN REMEDIAL MATTERS.

         Notwithstanding any other provision of this Agreement or any other
Credit Document:

                  (a) the Borrower shall at all times retain to the exclusion of
         all other parties, all rights to Excepted Payments payable to it and to
         demand, collect or commence an action at law to obtain such payments
         and to enforce any judgment with respect thereto; and

                  (b) the Borrower and each Holder shall at all times retain the
         right, but not to the exclusion of the Agent, (i) to retain all rights
         with respect to insurance that Article XIV of the Lease specifically
         confers upon the "Lessor", (ii) to provide such insurance as the Lessee
         shall have failed to maintain or as the Borrower or any Holder may
         desire, and (iii) to enforce compliance by the Lessee with the
         provisions of Articles VIII, IX, X, XI, XIV and XVII of the Lease.

         8.3 EXCEPTED PAYMENTS.

         Notwithstanding any other provision of this Agreement or the Security
Documents, any Excepted Payment received at any time by the Agent shall be
distributed promptly to the Person entitled to receive such Excepted Payment.

                                       18

<PAGE>   22

                            SECTION 9. MISCELLANEOUS

         9.1 AMENDMENTS AND WAIVERS.

         None of the terms or provisions of this Agreement may be terminated,
amended, supplemented, waived or modified except in accordance with the terms of
Section 12.4 of the Participation Agreement.

         9.2 NOTICES.

         All notices required or permitted to be given under this Agreement
shall be given in accordance with Section 12.2 of the Participation Agreement.

         9.3 NO WAIVER; CUMULATIVE REMEDIES.

         No failure to exercise and no delay in exercising, on the part of the
Agent or any Lender, any right, remedy, power or privilege hereunder or under
the other Credit Documents shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or future exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law.

         9.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         All representations and warranties made by the Borrower under the
Operative Agreements shall survive the execution and delivery of this Agreement
and the Notes and the making of the Loans hereunder.

         9.5 PAYMENT OF EXPENSES AND TAXES.

         The Borrower agrees to (with funds provided by the Lessee as
Supplemental Rent): (a) pay all reasonable out-of-pocket costs and expenses of
(i) the Agent whether or not the transactions herein contemplated are
consummated, in connection with the negotiation, preparation, execution and
delivery of the Operative Agreements and the documents and instruments referred
to therein (including without limitation the reasonable fees and disbursements
of Moore & Van Allen, PLLC) and any amendment, waiver or consent relating
thereto (including without limitation the reasonable fees and disbursements of
counsel to the Agent) and (ii) the Agent and each of the Lenders in connection
with the enforcement of the Operative Agreements and the documents and
instruments referred to therein (including without limitation the reasonable
fees and disbursements of counsel for the Agent and for each of the Lenders) and
(b) pay and hold each of the Lenders harmless from and against any and all
present and future stamp and other similar taxes with respect to the foregoing
matters and save each of the Lenders harmless from and against any and all
liabilities with respect to or resulting from any delay or omission (other than
to the extent attributable to such Lender) to pay such taxes.

                                       19

<PAGE>   23

         9.6 SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS.

         This Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Agent, all future holders of the Notes and their
respective successors and assigns, except that the Borrower may not assign or
transfer any of its rights or obligations under this Agreement without the prior
written consent of each Lender.

         9.7 PARTICIPATIONS.

         Subject to and in accordance with Section 10.1 of the Participation
Agreement, any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time sell to one (1) or more banks,
financial institutions or other entities (each, a "Participant") participating
interests in any Loan owing to such Lender, any Note held by such Lender, any
Commitment of such Lender or any other interest of such Lender hereunder and
under the other Operative Agreements; provided, that any such sale of a
participating interest shall be in a principal amount of at least $2,000,000.00
or such lesser amount constituting such Lender's entire interest in this
Agreement and the Notes. In the event of any such sale by a Lender of a
participating interest to a Participant, such Lender's obligations under this
Agreement to the other parties to this Agreement shall remain unchanged, such
Lender shall remain solely responsible for the performance thereof, such Lender
shall remain the holder of any such Note for all purposes under this Agreement
and the Notes, and the Borrower and the Agent shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and the Notes. In no event shall any
Participant have any right to approve any amendment or waiver of any provision
of this Agreement or any other Operative Agreement, or any consent to any
departure by the Borrower or any other Person therefrom, except to the extent
that such amendment, waiver or consent would (a) reduce the principal of, or
interest on, any Loan or Note, or postpone the date of the final maturity of any
Loan or Note, or reduce the amount of any Lender Unused Fee, in each case to the
extent subject to such participation or (b) release all or substantially all of
the Collateral. The Borrower agrees that, while an Event of Default shall have
occurred and be continuing, if amounts outstanding under this Agreement and the
Notes are due or unpaid, or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall, to the maximum extent
permitted by applicable law, be deemed to have the right of setoff in respect of
its participating interests in amounts owing directly to it as a Lender under
this Agreement or any Note, provided, that in purchasing such participating
interest, such Participant shall be deemed to have agreed to share with the
Lenders the proceeds thereof as provided in Section 9.10(a) as fully as if it
were a Lender hereunder. The Borrower also agrees that each Participant shall be
entitled to the benefits of Sections 11.2(e), 11.3 and 11.4 of the Participation
Agreement with respect to its participation in the Commitments and the Loans
outstanding from time to time as if it was a Lender; provided, that such
Participant shall have complied with the requirements of said Sections and
provided, further, that no Participant shall be entitled to receive any greater
amount pursuant to any such Section than the transferor Lender would have been
entitled to receive in respect of the amount of the participation transferred by
such transferor Lender to such Participant had no such transfer occurred.

                                       20

<PAGE>   24

         9.8 ASSIGNMENTS.

                  (a) Subject to and in accordance with Section 10.1 of the
         Participation Agreement, any Lender may, in the ordinary course of its
         business and in accordance with applicable law, at any time and from
         time to time assign to any Lender or any affiliate of any Lender or,
         with the consent, subject to Section 9.1 of the Participation
         Agreement, of the Borrower and the Agent (which in each case shall not
         be unreasonably withheld or delayed and which consent of the Borrower
         shall not be required during the continuation of any Event of Default),
         to an additional bank, financial institution or other entity that is
         either organized under the laws of the United States or any state
         thereof or is a foreign bank that operates a branch office in the
         United States, (each, a "Purchasing Lender") all or any part of its
         rights and obligations under this Agreement and the other Operative
         Agreements pursuant to an Assignment and Acceptance, substantially in
         the form of Exhibit B, executed by such Purchasing Lender, such
         assigning Lender (and, in the case of a Purchasing Lender that is not a
         Lender or an affiliate thereof, subject to Section 9.1 of the
         Participation Agreement, by the Borrower and the Agent) and delivered
         to the Agent for its acceptance and recording in the Register;
         provided, that no such assignment to a Purchasing Lender (other than
         any Lender or any affiliate thereof) shall be in an aggregate principal
         amount less than $5,000,000.00 (other than in the case of an assignment
         of all of a Lender's interests under this Agreement and the Notes).
         Upon such execution, delivery, acceptance and recording, from and after
         the effective date determined pursuant to such Assignment and
         Acceptance, (x) the Purchasing Lender thereunder shall be a party
         hereto and, to the extent provided in such Assignment and Acceptance,
         have the rights and obligations of a Lender hereunder with a Commitment
         as set forth therein, and (y) the assigning Lender thereunder shall, to
         the extent provided in such Assignment and Acceptance, be released from
         its obligations under this Agreement (and, in the case of an Assignment
         and Acceptance covering all of the remaining portion of an assigning
         Lender's rights and obligations under this Agreement, such assigning
         Lender shall cease to be a party hereto). Notwithstanding anything to
         the contrary in this Agreement, the consent of the Borrower shall not
         be required, and, unless requested by the relevant Purchasing Lender
         and/or assigning Lender, new Notes shall not be required to be executed
         and delivered by the Borrower, for any assignment which occurs at any
         time when any of the events described in Section 6(g) shall have
         occurred and be continuing.

                  (b) Upon its receipt of an Assignment and Acceptance executed
         by an assigning Lender and a Purchasing Lender (and, in the case of a
         Purchasing Lender that is not a Lender or an affiliate thereof, by the
         Borrower and the Agent) together with payment to the Agent of a
         registration and processing fee of $2,500.00 (which shall not be
         payable by the Borrower or the Lessee, except as otherwise provided in
         connection with an assignment requested in accordance with Section
         2.11(b)), the Agent shall (i) promptly accept such Assignment and
         Acceptance and (ii) promptly after the effective date determined
         pursuant thereto, record the information contained therein in the
         Register and give notice of such acceptance and recordation to the
         Lenders and the Borrower. On or prior to such effective date, the
         Borrower, at its own expense, shall execute and deliver

                                       21

<PAGE>   25

         to the Agent new Notes (in exchange for the Notes of the assigning
         Lender), each in an amount equal to the Commitment assumed or Loans
         purchased by the relevant Purchasing Lender pursuant to such Assignment
         and Acceptance, and, if the assigning Lender has retained a Commitment
         or any Loan hereunder, new Notes to the order of the assigning Lender,
         each in an amount equal to the Commitment or Loans retained by it
         hereunder. Such new Notes shall be dated the effective date of the
         applicable Assignment and Acceptance and shall otherwise be in the form
         of the Notes replaced thereby.

                  (c) Each Purchasing Lender (other than any Lender organized
         and existing under the laws of the U.S. or any political subdivision in
         or of the U.S.), by executing and delivering an Assignment and
         Acceptance,

                           (i) agrees to execute and deliver to the Agent, as
                  promptly as practicable, four (4) signed copies (two (2) for
                  the Agent and two (2) for delivery by the Agent to the
                  Borrower) of Form 1001 or Form 4224 (or any successor form or
                  comparable form) (it being understood that if the applicable
                  form is not so delivered, payments under or in respect of this
                  Agreement may be subject to withholding and deduction);

                           (ii) represents and warrants to the Borrower and the
                  Agent that the form so delivered is true and accurate and
                  that, as of the effective date of the applicable Assignment
                  and Acceptance, each of such Purchasing Lender's lending
                  offices is entitled to receive payments of principal and
                  interest under or in respect of this Agreement without
                  withholding or deduction for or on account of any taxes
                  imposed by the U.S. Federal government;

                           (iii) agrees to annually hereafter deliver to each of
                  the Borrower and the Agent not later than December 31 of the
                  year preceding the year to which it will apply, two (2)
                  further properly completed signed copies of Form 1001 or Form
                  4224 (or any successor form or comparable form), as
                  appropriate, unless an event has occurred which renders the
                  relevant form inapplicable (it being understood that if the
                  applicable form is not so delivered, payments under or in
                  respect of this Agreement may be subject to withholding and
                  deduction);

                           (iv) agrees to promptly notify the Borrower and the
                  Agent in writing if it ceases to be entitled to receive
                  payments of principal and interest under or in respect of this
                  Agreement without withholding or deduction for or on account
                  of any taxes imposed by the U.S. or any political subdivision
                  in or of the U.S. (it being understood that payments under or
                  in respect of this Agreement may be subject to withholding and
                  deduction in such event);

                           (v) acknowledges that in the event it ceases to be
                  exempt from withholding and/or deduction of such taxes, the
                  Agent may withhold and/or deduct the applicable amount from
                  any payments to which such assignee Lender

                                       22

<PAGE>   26

                  would otherwise be entitled, without any liability to such
                  assignee Lender therefor; and

                           (vi) agrees to indemnify the Borrower and the Agent
                  from and against any and all liabilities, obligations, losses,
                  damages, penalties, actions, judgments, suits, costs or
                  expenses that result from such assignee Lender's breach of any
                  such representation, warranty or agreement.

                  (d) Any Lender party to this Agreement may, from time to time
         and without the consent of the Borrower or any other Person, pledge or
         assign for security purposes any portion of its Loans or any other
         interests in this Agreement and the other Credit Documents to any
         Federal Reserve Bank.

         9.9 THE REGISTER; DISCLOSURE; PLEDGES TO FEDERAL RESERVE BANKS.

                  (a) The Agent shall maintain for the benefit of the Lenders at
         its address referred to in Section 9.2 a copy of each Assignment and
         Acceptance delivered to it and a register (the "Register") for the
         recordation of the names and addresses of the Lenders, the Commitments
         of the Lenders, and the principal amount of the Loans owing to each
         Lender from time to time. The entries in the Register shall be
         conclusive, in the absence of clearly demonstrable error, and the
         Borrower, the Agent and the Lenders may treat each Person whose name is
         recorded in the Register as the owner of the Loan recorded therein for
         all purposes of this Agreement. The Register shall be available for
         inspection by the Borrower or any Lender at any reasonable time and
         from time to time upon reasonable notice.

                  (b) Nothing herein shall prohibit any Lender from pledging or
         assigning any Note to any Federal Reserve Bank in accordance with
         applicable law.

         9.10 ADJUSTMENTS; SET-OFF.

                  (a) Except as otherwise expressly provided in Section 8.1
         hereof and Section 8.7 of the Participation Agreement where, and to the
         extent, one (1) Lender is entitled to payments prior to other Lenders,
         if any Lender (a "Benefitted Lender") shall at any time receive any
         payment of all or part of its Loans, or interest thereon, or receive
         any collateral in respect thereof (whether voluntarily or
         involuntarily, by set-off, pursuant to events or proceedings of the
         nature referred to in Section 6(g), or otherwise), in a greater
         proportion than any such payment to or collateral received by any other
         Lender, if any, in respect of such other Lender's Loans, or interest
         thereon, such Benefitted Lender shall purchase for cash from the other
         Lenders a participating interest in such portion of each such other
         Lender's Loan, or shall provide such other Lenders with the benefits of
         any such collateral, or the proceeds thereof, as shall be necessary to
         cause such Benefitted Lender to share the excess payment or benefits of
         such collateral or proceeds ratably with each of the Lenders; provided,
         however, that if all or any portion of such excess payment or benefits
         is thereafter recovered from such Benefitted Lender, such purchase
         shall be

                                       23

<PAGE>   27

         rescinded, and the purchase price and benefits returned, to the event
         of such recovery, but without interest.

                  (b) In addition to any rights now or hereafter granted under
         applicable law or otherwise, and not by way of limitation of any such
         rights, upon the occurrence of an Event of Default, the Agent and each
         Lender is hereby authorized at any time or from time to time, without
         presentment, demand, protest or other notice of any kind to the
         Borrower or to any other Person, any such notice being hereby expressly
         waived, to set off and to appropriate and apply any and all deposits
         (general or special) and any other Indebtedness at any time held or
         owing by the Agent or such Lender (including without limitation by
         branches and agencies of the Agent or such Lender wherever located) or
         any affiliate of such Lender to or for the credit or the account of the
         Borrower against and on account of the obligations and liabilities of
         the Borrower to the Agent or such Lender under this Agreement or under
         any of the other Operative Agreements, including without limitation all
         interests in obligations of the Borrower purchased by any such Lender
         pursuant to Section 9.10(a), and all other claims of any nature or
         description arising out of or connected with this Agreement or any
         other Operative Agreement, irrespective or whether or not the Agent or
         such Lender shall have made any demand and although said obligations,
         liabilities or claims, or any of them, shall be contingent or
         unmatured.

         9.11 COUNTERPARTS.

         This Agreement may be executed by one (1) or more of the parties to
this Agreement on any number of separate counterparts (including without
limitation by telecopy), and all of said counterparts taken together shall be
deemed to constitute one (1) and the same instrument. A set of the copies of
this Agreement signed by all the parties shall be lodged with the Borrower and
the Agent.

         9.12 SEVERABILITY.

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

         9.13 INTEGRATION.

         This Agreement and the other Credit Documents represent the agreement
of the Borrower, the Agent, and the Lenders with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or
warranties by the Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Credit Documents.

                                       24

<PAGE>   28

         9.14 GOVERNING LAW.

         THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED,
INTERPRETED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH
CAROLINA.

         9.15 SUBMISSION TO JURISDICTION; VENUE; ARBITRATION.

         THE PROVISIONS OF THE PARTICIPATION AGREEMENT RELATING TO SUBMISSION TO
JURISDICTION, VENUE AND ARBITRATION ARE HEREBY INCORPORATED BY REFERENCE HEREIN,
MUTATIS MUTANDIS.

         9.16 ACKNOWLEDGMENTS.

         The Borrower hereby acknowledges that:

                  (a) neither the Agent nor any Lender has any fiduciary
         relationship with or duty to the Borrower arising out of or in
         connection with this Agreement or any of the other Credit Documents,
         and the relationship between the Agent and the Lenders, on one (1)
         hand, and the Borrower, on the other hand, in connection herewith or
         therewith is solely that of debtor and creditor; and

                  (b) no joint venture is created hereby or by the other Credit
         Documents or otherwise exists by virtue of the transactions
         contemplated hereby among the Lenders or among the Borrower and the
         Lenders.

         9.17 WAIVERS OF JURY TRIAL.

         THE BORROWER, THE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW, TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

         9.18 NONRECOURSE.

         In addition to and not in limitation of Section 12.9 of the
Participation Agreement, anything to the contrary contained in this Agreement or
in any other Operative Agreement notwithstanding, no Exculpated Person shall be
personally liable in any respect for any liability or obligation hereunder or
under any other Operative Agreement including without limitation the payment of
the principal of, or interest on, the Notes, or for monetary damages for the
breach of performance of any of the covenants contained in this Agreement, the
Notes or any of the other Operative Agreements. The Agent and the Lenders agree
that, in the event any of them pursues any remedies available to them under this
Agreement, the Notes or any other Operative

                                       25

<PAGE>   29

Agreement, neither the Agent nor the Lenders shall have any recourse against the
Borrower, nor any other Exculpated Person, for any deficiency, loss or claim for
monetary damages or otherwise resulting therefrom and recourse shall be had
solely and exclusively against the Trust Estate and the Lessee; but nothing
contained herein shall be taken to prevent recourse against or the enforcement
of remedies against the Trust Estate in respect of any and all liabilities,
obligations and undertakings contained in this Agreement, the Notes or any other
Operative Agreement. The Agent and the Lenders further agree that the Borrower
shall not be responsible for the payment of any amounts owing hereunder
(excluding principal and interest (other than Overdue Interest) in respect of
the Loans) (such non-excluded amounts, "Supplemental Amounts") except to the
extent that payments of Supplemental Rent designated by the Lessee for
application to such Supplemental Amounts shall have been paid by the Lessee
pursuant to the Lease (it being understood that the failure by the Lessee for
any reason to pay any Supplemental Rent in respect of such Supplemental Amounts
shall nevertheless be deemed to constitute a default by the Borrower for the
purposes of Section 6). Notwithstanding the foregoing provisions of this Section
9.18, nothing in this Agreement or any other Operative Agreement shall (a)
constitute a waiver, release or discharge of any obligation evidenced or secured
by this Agreement or any other Credit Document, (b) limit the right of the Agent
or any Lender to name the Borrower as a party defendant in any action or suit
for judicial foreclosure and sale under any Security Document, or (c) affect in
any way the validity or enforceability of any guaranty (whether of payment
and/or performance) given to the Lessor, the Agent or the Lenders, or of any
indemnity agreement given by the Borrower, in connection with the Loans made
hereunder.

         9.19 USURY SAVINGS PROVISION.

         IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND CONTRACT IN
STRICT COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT AND THAT
N.C. GEN. STAT. ss. 24-9 SHALL APPLY WITH RESPECT TO THIS AGREEMENT. TO THE
EXTENT N.C. GEN. STAT. ss. 24-9 IS HEREAFTER DEEMED NOT TO APPLY BY A COURT OF
COMPETENT JURISDICTION AND ANY PAYMENTS HEREUNDER ARE HEREINAFTER CHARACTERIZED
BY ANY COURT OF COMPETENT JURISDICTION AS THE REPAYMENT OF PRINCIPAL AND
INTEREST THEREON, THE FOLLOWING PROVISIONS OF THIS SECTION 9.19 SHALL APPLY. ANY
SUCH PAYMENTS SO CHARACTERIZED AS INTEREST MAY BE REFERRED TO HEREIN AS
"INTEREST." ALL AGREEMENTS AMONG THE PARTIES HERETO ARE HEREBY LIMITED BY THE
PROVISIONS OF THIS PARAGRAPH WHICH SHALL OVERRIDE AND CONTROL ALL SUCH
AGREEMENTS, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER WRITTEN OR
ORAL. IN NO WAY, NOR IN ANY EVENT OR CONTINGENCY (INCLUDING WITHOUT LIMITATION
PREPAYMENT OR ACCELERATION OF THE MATURITY OF ANY OBLIGATION), SHALL ANY
INTEREST TAKEN, RESERVED, CONTRACTED FOR, CHARGED, OR RECEIVED UNDER THIS
AGREEMENT OR OTHERWISE, EXCEED THE MAXIMUM NONUSURIOUS AMOUNT PERMISSIBLE UNDER
APPLICABLE LAW. IF, FROM ANY POSSIBLE CONSTRUCTION OF ANY OF THE OPERATIVE
AGREEMENTS OR ANY OTHER DOCUMENT OR AGREEMENT, INTEREST WOULD OTHERWISE BE
PAYABLE IN EXCESS OF THE MAXIMUM NONUSURIOUS AMOUNT, ANY SUCH

                                       26

<PAGE>   30

CONSTRUCTION SHALL BE SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH AND SUCH
AMOUNTS UNDER SUCH DOCUMENTS OR AGREEMENTS SHALL BE AUTOMATICALLY REDUCED TO THE
MAXIMUM NONUSURIOUS AMOUNT PERMITTED UNDER APPLICABLE LAW, WITHOUT THE NECESSITY
OF EXECUTION OF ANY AMENDMENT OR NEW DOCUMENT OR AGREEMENT. IF THE AGENT OR ANY
LENDER SHALL EVER RECEIVE ANYTHING OF VALUE WHICH IS CHARACTERIZED AS INTEREST
WITH RESPECT TO THE OBLIGATIONS OWED HEREUNDER OR UNDER APPLICABLE LAW AND WHICH
WOULD, APART FROM THIS PROVISION, BE IN EXCESS OF THE MAXIMUM LAWFUL AMOUNT, AN
AMOUNT EQUAL TO THE AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE INTEREST SHALL,
WITHOUT PENALTY, BE APPLIED TO THE REDUCTION OF THE COMPONENT OF PAYMENTS DEEMED
TO BE PRINCIPAL AND NOT TO THE PAYMENT OF INTEREST, OR REFUNDED TO THE BORROWER
OR ANY OTHER PAYOR THEREOF, IF AND TO THE EXTENT SUCH AMOUNT WHICH WOULD HAVE
BEEN EXCESSIVE EXCEEDS THE COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL. THE
RIGHT TO DEMAND PAYMENT OF ANY AMOUNTS EVIDENCED BY ANY OF THE OPERATIVE
AGREEMENTS DOES NOT INCLUDE THE RIGHT TO RECEIVE ANY INTEREST WHICH HAS NOT
OTHERWISE ACCRUED ON THE DATE OF SUCH DEMAND, AND NEITHER THE AGENT NOR ANY
LENDER INTENDS TO CHARGE OR RECEIVE ANY UNEARNED INTEREST IN THE EVENT OF SUCH
DEMAND. ALL INTEREST PAID OR AGREED TO BE PAID TO THE AGENT OR ANY LENDER SHALL,
TO THE EXTENT PERMITTED BY APPLICABLE LAW, BE AMORTIZED, PRORATED, ALLOCATED,
AND SPREAD THROUGHOUT THE FULL STATED TERM (INCLUDING WITHOUT LIMITATION ANY
RENEWAL OR EXTENSION) OF THIS AGREEMENT SO THAT THE AMOUNT OF INTEREST ON
ACCOUNT OF SUCH PAYMENTS DOES NOT EXCEED THE MAXIMUM NONUSURIOUS AMOUNT
PERMITTED BY APPLICABLE LAW.

                            [signature pages follow]

                                       27

<PAGE>   31

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

                                        FIRST SECURITY BANK, NATIONAL
                                        ASSOCIATION, not individually, except as
                                        expressly stated herein, but solely as
                                        the Owner Trustee under the RFMD Real
                                        Estate Trust 1999-1

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                           [signature pages continue]

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   32

                                        FIRST UNION NATIONAL BANK, as the Agent
                                        and a Lender

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   33

                                        CREDIT SUISSE FIRST BOSTON, as a Lender

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                           [signature pages continue]

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   34

                                        COMERICA BANK, as a Lender

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                           [signature pages continue]

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   35

                                        SUNTRUST BANK, ATLANTA, as a Lender

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                           [signature pages continue]

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   36

                                        CITICORP USA, Inc., as a Lender

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                           [signature pages continue]

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   37

                                        FLEET NATIONAL BANK, as a Lender

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                              [signature pages end]

                                                                Credit Agreement
                                                   RFMD Real Estate Trust 1999-1

<PAGE>   38

                                  Schedule 2.1
                                  ------------

                                        Tranche A                Tranche B
                                        Commitment               Commitment
                                        ----------               ----------
Name and Address of Lenders       Amount     Percentage      Amount   Percentage
---------------------------       ------     ----------      ------   ----------

First Union National Bank     $21,250,000.00   25.0000%  $2,400,000.00  20.0000%
First Union Securities, Inc.
301 South College Street, DC6
Charlotte, NC 28288-0166
Attn:    Christy Lee Foster
Phone:   704-383-5398
Fax:     704-383-7989

Credit Suisse First Boston    $17,000,000.00   20.0000%  $1,650,000.00   3.7500%
Eleven Madison Avenue
New York, New York  10010
Attn:    Chris Horgan
Phone:   212-325-9157
Fax:     212-325-8309

Comerica Bank                 $14,875,000.00   17.5000%  $2,625,000.00  21.8750%
U.S. Banking East
500 Woodward Avenue, 9th Floor, MC 3280
Detroit, MI  48275-3280
Attn:    Dan M. Roman
Phone:   313-222-3803
Fax:     313-222-3330

SunTrust Bank, Atlanta        $14,875,000.00   17.5000%  $2,625,000.00  21.8750%
200 South Orange Avenue, 11th Floor
Orlando, FL  32801
Attn:    Andrew J. Hines
Phone:   407-237-4839
Fax:     407-237-6894

Citicorp USA, Inc.             $8,500,000.00   10.0000%   1,500,000.00  12.5000%
390 Greenwich Street
1st Floor
New York, NY  10013
Attn:    Nicolas Erni
Phone:   212-723-6560
Fax:     212-723-8547

Fleet National Bank            $8,500,000.00   10.0000%  $1,200,000.00  10.0000%
100 Federal Street
MA BOS 01-08-08
Boston, MA  02110
Attn:    David Crane
Phone:   617-434-5584
Fax:     617-434-0819

TOTAL                         $85,000,000.00     100%   $12,000,000.00    100%

<PAGE>   39

                                   Exhibit A-1

                                 TRANCHE A NOTE

                         (RFMD Real Estate Trust 1999-1)

                                                               December 31, 1999

         FOR VALUE RECEIVED, the undersigned, FIRST SECURITY BANK, NATIONAL
ASSOCIATION, not in its individual capacity, but solely as the Owner Trustee
under the RFMD Real Estate Trust 1999-1 (the "Borrower"), hereby unconditionally
promises to pay to the order of [LENDER] (the "Lender"), at the office of First
Union National Bank, located at c/o First Union Securities, Inc., DC-6, 301
South College Street, Charlotte, North Carolina 28288-0166 or at such other
address as may be specified by First Union National Bank, in lawful money of the
United States of America and in immediately available funds, the respective
dates specified in Schedule 1 to the Participation Agreement, the amounts
described in such Schedule 1 and on the Maturity Date, the aggregate unpaid
principal amount of all Tranche A Loans made by the Lender to the Borrower
pursuant to Section 2.1 of the Credit Agreement (as defined below). The Borrower
agrees to pay interest in like money at such office on the unpaid principal
amount hereof from time to time outstanding at the rates and on the dates
specified in Section 2.8 of such Credit Agreement.

         The holder of this Note is authorized to endorse on the schedules
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date, Type and amount of each
Tranche A Loan made pursuant to the Credit Agreement and the date and amount of
each payment or prepayment of principal thereof, each continuation thereof and
each conversion of all or a portion thereof to another Type. Each such
endorsement shall constitute prima facie evidence of the accuracy of the
information endorsed. The failure to make any such endorsement or any error in
such endorsement shall not affect the obligations of the Borrower in respect of
such Loan.

         This Note (a) is one (1) of the Notes referred to in the Credit
Agreement dated as of December 31, 1999 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Borrower, the
Lender, the other banks and financial institutions from time to time parties
thereto and First Union National Bank, as the Agent, (b) is subject to the
provisions of the Credit Agreement (including without limitation Section 9.18
thereof) and (c) is subject to optional and mandatory prepayment in whole or in
part as provided in the Credit Agreement. Reference is hereby made to the Credit
Documents for a description of the properties and assets in which a security
interest has been granted, the nature and extent of the security and the
guarantees, the terms and conditions upon which the security interests and each
guarantee were granted and the rights of the holder of this Note in respect
thereof.

                                      A1-1

<PAGE>   40

         Upon the occurrence of any one (1) or more of the Events of Default,
all amounts then remaining unpaid on this Note shall become, or may be declared
to be, immediately due and payable, all as provided in the Credit Agreement.

         All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

         Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED, INTERPRETED AND ENFORCED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA.

         IN WITNESS WHEREOF, THE UNDERSIGNED AUTHORIZED OFFICER OF THE BORROWER
HAS EXECUTED THIS NOTE AS OF THE DATE FIRST SET FORTH ABOVE.

                                        FIRST SECURITY BANK, NATIONAL
                                        ASSOCIATION, not individually, but
                                        solely as the Owner Trustee under the
                                        RFMD Real Estate Trust 1999-1

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                      A1-2

<PAGE>   41

                                   Exhibit A-2

                                 TRANCHE B NOTE

                         (RFMD Real Estate Trust 1999-1)

                                                               December 31, 1999

         FOR VALUE RECEIVED, the undersigned, FIRST SECURITY BANK, NATIONAL
ASSOCIATION, not in its individual capacity, but solely as the Owner Trustee
under the RFMD Real Estate Trust 1999-1 (the "Borrower"), hereby unconditionally
promises to pay to the order of [LENDER] (the "Lender") at the office of First
Union National Bank located at c/o First Union Securities, Inc., DC-6, 301 South
College Street, Charlotte, North Carolina 28288-0166 or at such other address as
may be specified by First Union National Bank, in lawful money of the United
States of America and in immediately available funds, on the Maturity Date, the
aggregate unpaid principal amount of all Tranche B Loans made by the Lender to
the Borrower pursuant to Section 2.1 of the Credit Agreement (as defined below).
The Borrower agrees to pay interest in like money at such office on the unpaid
principal amount hereof from time to time outstanding at the rates and on the
dates specified in Section 2.8 of such Credit Agreement.

         The holder of this Note is authorized to endorse on the schedules
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the date, Type and amount of each
Tranche B Loan made pursuant to the Credit Agreement and the date and amount of
each payment or prepayment of principal thereof, each continuation thereof and
each conversion of all or a portion thereof to another Type. Each such
endorsement shall constitute prima facie evidence of the accuracy of the
information endorsed. The failure to make any such endorsement or any error in
such endorsement shall not affect the obligations of the Borrower in respect of
such Loan.

         This Note (a) is one (1) of the Notes referred to in the Credit
Agreement dated as of December __, 1999 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among the Borrower, the
Lender, the other banks and financial institutions from time to time parties
thereto and First Union National Bank, as the Agent, (b) is subject to the
provisions of the Credit Agreement (including without limitation Section 9.18
thereof) and (c) is subject to optional and mandatory prepayment in whole or in
part as provided in the Credit Agreement. Reference is hereby made to the Credit
Documents for a description of the properties and assets in which a security
interest has been granted, the nature and extent of the security and the
guarantees, the terms and conditions upon which the security interests and each
guarantee were granted and the rights of the holder of this Note in respect
thereof.

         Upon the occurrence of any one (1) or more of the Events of Default,
all amounts then remaining unpaid on this Note shall become, or may be declared
to be, immediately due and payable, all as provided in the Credit Agreement.

                                      A2-1

<PAGE>   42

         All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest and all other notices of any kind.

         Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED, INTERPRETED AND ENFORCED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA.

         IN WITNESS WHEREOF, THE UNDERSIGNED AUTHORIZED OFFICER OF THE BORROWER
HAS EXECUTED THIS NOTE AS OF THE DATE FIRST SET FORTH ABOVE.

                                        FIRST SECURITY BANK, NATIONAL
                                        ASSOCIATION, not individually, but
                                        solely as the Owner Trustee under the
                                        RFMD Real Estate Trust 1999-1

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                      A2-2

<PAGE>   43

                                    Exhibit B

                            ASSIGNMENT AND ACCEPTANCE

         THIS ASSIGNMENT AND ACCEPTANCE dated as of ____________, 1999 (as
amended, modified, supplemented, restated and/or replaced from time to time, the
"Assignment and Acceptance") is between [____________________] (the "Assignor")
and [_______________] (the "Assignee").

         Reference is made to the Credit Agreement, dated as of August ____,
1999 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"), among FIRST SECURITY BANK, NATIONAL ASSOCIATION, not in its
individual capacity, but solely as the Owner Trustee under the RFMD Real Estate
Trust 1999-1 (the "Owner Trustee" or the "Borrower"), the Lenders named therein
and FIRST UNION NATIONAL BANK, as the Agent. Unless otherwise defined herein,
terms defined in the Credit Agreement (or pursuant to Section 1 of the Credit
Agreement, defined in other agreements) and used herein shall have the meanings
given to them in or pursuant to the Credit Agreement.

         The Assignor and the Assignee agree as follows:

         1. The Assignor hereby irrevocably sells and assigns to the Assignee
without recourse to the Assignor, and the Assignee hereby irrevocably purchases
and assumes from the Assignor without recourse to the Assignor, as of the
Effective Date (as defined below), a [___%] interest (the "Assigned Interest")
in and to the Assignor's rights and obligations under the Credit Agreement with
respect to the credit facility contained in the Credit Agreement as are set
forth on Schedule 1 hereto (the "Assigned Facility"), in a principal amount for
the Assigned Facility as set forth on Schedule 1.

         2. The Assignor (a) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or any other Operative
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other Operative Agreement or
any other instrument or document furnished pursuant thereto, other than that it
has not created any adverse claim upon the interest being assigned by it
hereunder and that such interest is free and clear of any such adverse claim;
(b) makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower, or any other obligor or the
performance or observance by the Borrower, or any other obligor of any of their
respective obligations under the Credit Agreement or any other Operative
Agreement or any other instrument or document furnished pursuant hereto or
thereto; and (c) attaches the Note held by it evidencing the Assigned Facility
and requests that the Agent exchange such Note for a new Note payable to the
Assignee and (if the Assignor has retained any interest in the Assigned
Facility) a new Note payable to the Assignor in the respective amounts

                                      B-1

<PAGE>   44

which reflect the assignment being made hereby (and after giving effect to any
other assignments which have become effective on the Effective Date).

         3. The Assignee (a) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (b) confirms that it
has received copies of the Operative Agreements, and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (c) agrees that it will,
independently and without reliance upon the Assignor, the Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement, the other Operative Agreements or any other
instrument or document furnished pursuant hereto or thereto; (d) appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement, the other Operative
Agreements or any other instrument or document furnished pursuant hereto or
thereto as are delegated to the Agent by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by the
provisions of the Credit Agreement and the other Operative Agreements to which
Assignee is a party and will perform in accordance herewith all the obligations
which by the terms of the Credit Agreement and the other Operative Agreements to
which Assignee is a party are required to be performed by it as a Lender
including without limitation, if it is organized under the laws of a
jurisdiction outside the U.S., its obligation pursuant to Section 11.2(e) of the
Participation Agreement.

         4. The effective date of this Assignment and Acceptance shall be
[________, 19__] (the "Effective Date"). Following the execution of this
Assignment and Acceptance, it will be delivered to the Agent for acceptance by
it and recording by the Agent pursuant to Section 9.9 of the Credit Agreement,
effective as of the Effective Date (which shall not, unless otherwise agreed to
by the Agent, be earlier than five (5) Business Days after the date of such
acceptance and recording by the Agent).

         5. Upon such acceptance and recording, from and after the Effective
Date, the Agent shall make all payments in respect of the Assigned Interest
(including without limitation payments of principal, interest, fees and other
amounts) to the Assignee whether such amounts have accrued prior to the
Effective Date or accrue subsequent to the Effective Date. The Assignor and the
Assignee shall make all appropriate adjustments in payments by the Agent for
periods prior to the Effective Date or with respect to the making of this
assignment directly between themselves.

         6. From and after the Effective Date, (a) the Assignee shall be a party
to the Credit Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and under the
other Operative Agreements and shall be bound by the provisions thereof and (b)
the Assignor shall, to the extent provided in this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Credit
Agreement and the other Operative Agreements.

                                      B-2

<PAGE>   45

         7. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED,
INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH
CAROLINA.

                                      B-3

<PAGE>   46

         IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed as of the date first above written by their respective
duly authorized officers on Schedule 1 hereto.

                                        [Name of Assignor]

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        [Name of Assignee]

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        Consented To:

                                        FIRST SECURITY BANK, NATIONAL
                                        ASSOCIATION, not individually, but
                                        solely as the Owner Trustee under the
                                        RFMD Real Estate Trust 1999-1

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        FIRST UNION NATIONAL BANK, as the Agent

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

[consents required only to the extent expressly provided in Section 9.8 of the
Credit Agreement]

                                      B-4

<PAGE>   47

                                   SCHEDULE 1
                          TO ASSIGNMENT AND ACCEPTANCE
                        RELATING TO THE CREDIT AGREEMENT,
                          DATED AS OF AUGUST __, 1999,
                                      AMONG
                    FIRST SECURITY BANK, NATIONAL ASSOCIATION
                                NOT INDIVIDUALLY,
                        BUT SOLELY AS THE OWNER TRUSTEE,
                            THE LENDERS NAMED THEREIN
                                       AND
                     FIRST UNION NATIONAL BANK, AS THE AGENT
                 FOR THE LENDERS (IN SUCH CAPACITY, THE "AGENT")

Name of Assignor:
                 -------------------------------

Name of Assignee:
                 -------------------------------

Effective Date of Assignment:
                             -------------------

         Credit Principal      Commitment
         Facility Assigned     Amount Assigned     Percentage Assigned
         -----------------     ---------------     -------------------

                               $                               %
         -----------------      ------------       ------------

         [Name of Assignor]

         By:
            -----------------------------------------
         Name:
              ---------------------------------------
         Title:
               --------------------------------------

         [Name of Assignee]

         By:
            -----------------------------------------
         Name:
              ---------------------------------------
         Title:
               --------------------------------------

                                      B-5

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