Document:

EX-10.49 Participation Agreement

 

EXHIBIT 10.49

 

 

PARTICIPATION AGREEMENT

Dated as of February 15, 2007

among

CULPEPER LESSOR 2007-1 LLC,

as the Lessor,

NAP OF THE CAPITAL REGION, LLC,

as the Lessee,

and

TERREMARK WORLDWIDE, INC.,

as the Guarantor

 

Lease Financing for

facility located in Culpeper, Virginia

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 1     DEFINITIONS; INTERPRETATION	 	 	1	 
	 	 	 	 	 	 	 	 	 
	SECTION 2     ACQUISITION AND LEASE; NATURE OF TRANSACTION	 	 	1	 
	     Section 2.1	 	Agreement to Acquire and Lease
	 	 	1	 
	     Section 2.2	 	Funding
	 	 	1	 
	     Section 2.3	 	Nature of Transaction
	 	 	1	 
	     Section 2.4	 	Amounts Due Under Lease
	 	 	2	 
	     Section 2.5	 	Controlling Agreements
	 	 	2	 
	     Section 2.6	 	Permitted Use of Lease Balance
	 	 	2	 
	 	 	 	 	 	 	 	 	 
	SECTION 3     CONDITIONS PRECEDENT; DOCUMENTS	 	 	3	 
	     Section 3.1	 	Conditions to the Closing Date
	 	 	3	 
	 	 	 	 	 	 	 	 	 
	SECTION 4     REPRESENTATIONS AND COVENANTS	 	 	5	 
	     Section 4.1	 	Representations and Covenants of the Lessee and Guarantor
	 	 	5	 
	     Section 4.2	 	Tax Treatment
	 	 	11	 
	 	 	 	 	 	 	 	 	 
	SECTION 5     ADDITIONAL COVENANTS OF LESSEE AND GUARANTOR	 	 	11	 
	     Section 5.1	 	Qualification as to Corporate Status; Fundamental Changes
	 	 	11	 
	     Section 5.2	 	Further Assurances
	 	 	11	 
	     Section 5.3	 	Reporting; Inspections
	 	 	12	 
	     Section 5.4	 	Compliance with Law
	 	 	12	 
	     Section 5.5	 	Payment of Taxes and Claims
	 	 	12	 
	     Section 5.6	 	Maintenance of Properties
	 	 	12	 
	     Section 5.7	 	Notice of Change of Executive Offices, Change of Name
	 	 	13	 
	     Section 5.8	 	Environmental Covenants and Remedies
	 	 	13	 
	     Section 5.9	 	Use of Proceeds; Margin Regulations
	 	 	15	 
	     Section 5.10	 	Increased Costs; Funding Losses
	 	 	15	 
	     Section 5.11	 	Assets Control Regulations and Anti-Money Laundering
	 	 	17	 
	     Section 5.12	 	Purchase Agreement
	 	 	17	 
	 	 	 	 	 	 	 	 	 
	SECTION 6     TRANSFERS BY LESSOR AND HOLDERS	 	 	17	 
	     Section 6.1	 	Lessor Transfers
	 	 	17	 
	     Section 6.2	 	Participations
	 	 	17	 
	 	 	 	 	 	 	 	 	 
	SECTION 7     INDEMNIFICATION	 	 	18	 
	     Section 7.1	 	General Indemnification
	 	 	18	 

     i     

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	     Section 7.2	 	Environmental Indemnity
	 	 	19	 
	     Section 7.3	 	Proceedings in Respect of Claims
	 	 	21	 
	     Section 7.4	 	General Tax Indemnity
	 	 	22	 
	     Section 7.5	 	Exculpation
	 	 	27	 
	     Section 7.6	 	Role of Lessor
	 	 	27	 
	     Section 7.7	 	Lessor’s Benefit
	 	 	28	 
	 	 	 	 	 	 	 	 	 
	SECTION 8     MISCELLANEOUS	 	 	28	 
	     Section 8.1	 	Survival of Agreements
	 	 	28	 
	     Section 8.2	 	Notices
	 	 	28	 
	     Section 8.3	 	Counterparts
	 	 	29	 
	     Section 8.4	 	Amendments
	 	 	29	 
	     Section 8.5	 	Headings, etc
	 	 	29	 
	     Section 8.6	 	Parties in Interest
	 	 	30	 
	     Section 8.7	 	Governing Law
	 	 	30	 
	     Section 8.8	 	Liability of Lessor Limited
	 	 	30	 
	     Section 8.9	 	Expenses
	 	 	30	 
	     Section 8.10	 	Severability
	 	 	30	 
	     Section 8.11	 	Submission to Jurisdiction; Waivers
	 	 	30	 
	     Section 8.12	 	Limitation on Interest
	 	 	31	 
	     Section 8.13	 	Reproduction of Documents
	 	 	32	 
	     Section 8.14	 	Payment of Expenses
	 	 	32	 
	 	 	 	 	 	 	 	 	 
	APPENDIX I     Definitions and Interpretation	 	 	 	 

     ii     

 

 

PARTICIPATION AGREEMENT

     THIS PARTICIPATION AGREEMENT (this “Agreement”), dated as of February 15, 2007, is
among CULPEPER LESSOR 2007-1 LLC, a Delaware limited liability company, as the Lessor; NAP OF THE
CAPITAL REGION, LLC, a Florida limited liability company, as the Lessee; and TERREMARK WORLDWIDE,
INC., a Delaware corporation, as the Guarantor.

W I T N E S S E T H:

     In accordance with the terms and provisions of this Agreement, the Lease and the other
Operative Documents, (i) the Lessor has agreed to acquire the Leased Property, (ii) the Lessor has
agreed to lease the Leased Property to the Lessee under the Lease and (iii) the Lessee has agreed
to rent the Leased Property from the Lessor under the Lease.

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

SECTION 1

DEFINITIONS; INTERPRETATION

     Unless the context shall otherwise require, capitalized terms used and not defined herein
shall have the meanings assigned thereto in Appendix I hereto for all purposes hereof and the rules
of interpretation set forth in Appendix I hereto shall apply to this Agreement.

SECTION 2

ACQUISITION AND LEASE; NATURE OF TRANSACTION

     SECTION 2.1 Agreement to Acquire and Lease. Subject to the terms and conditions of
this Agreement, on the Closing Date (i) the Lessor has agreed to acquire the Leased Property, (ii)
the Lessor shall lease the Leased Property to the Lessee, and the Lessee shall lease the Leased
Property from the Lessor, under the Lease, and (iii) the Lessee shall record the Lease (or a
memorandum thereof) and the other Operative Documents to be recorded as provided in this Agreement.

     SECTION 2.2 Funding. On the Closing Date, upon the Lessee’s satisfaction of the
conditions set forth in Section 3.1 hereof, the Lessor shall acquire the Leased Property and fund
the initial amount of the Lease Balance in an aggregate amount not to exceed $4,431,811.99.

     SECTION 2.3 Nature of Transaction. It is the intent of the parties hereto, and the
parties hereto expressly agree, that, as provided in Article XII of the Lease, for all
purposes, including Lessee’s financial accounting purposes, commercial, real estate and regulatory
law, bankruptcy (including the substantive law upon which bankruptcy proceedings are based) and
federal income tax and state and local income, property and transfer tax law, UCC and all other
purposes:

 

 

          (a) The Overall Transaction constitutes a financing transaction. The Overall Transaction
preserves beneficial ownership in the Leased Property in the Lessee and the obligations of the
Lessee to pay Basic Rent shall be treated as payments of principal and interest to the Lessor.

          (b) The Lessor holds title to the Leased Property as security for the Lessee’s obligations
under the Operative Documents, and the Lease grants a lien and security interest in the Leased
Property and the other collateral described therein for the benefit of the Lessor.

     Reference is made to Article XII of the Lease for the provisions thereof concerning
the intent of the parties and the nature of the interest held by the Lessor in the Leased Property.
Notwithstanding the foregoing and the provisions of Section 4.2 and Section 7.4
hereof, the Lessee acknowledges and agrees that neither the Lessor nor any Affiliates of the Lessor
nor any other Person, has made any representations or warranties to the Lessee concerning the tax,
financial, accounting or legal characteristics or treatment of the Operative Documents or any
aspect of the Overall Transaction and that the Lessee has obtained and relied solely upon the
advice of its own tax, accounting and legal advisors concerning the Operative Documents and the
accounting, tax, financial and legal consequences of the transactions contemplated therein.

     SECTION 2.4 Amounts Due Under Lease. Anything in this Agreement or in any of the
other Operative Documents to the contrary notwithstanding, it is the intention of the Lessee and
the Lessor that (i) the Lessee shall be obligated, pursuant to the terms of the Lease, to pay Rent
to the Lessor as and when due under the Lease, including payment of Basic Rent on each Rent Payment
Date, (ii) if the Lessee elects the Purchase Option or becomes obligated to purchase the Leased
Property under the Lease or any of the other Operative Documents, the principal amount of the Lease
Balance then outstanding, all interest accrued thereon and all other obligations of the Lessee
owing to the Lessor under the Operative Documents, shall be paid in full by the Lessee and (iii)
upon an Event of Default resulting in an acceleration of the Lessee’s obligation to purchase the
Leased Property under the Lease, the amounts then due and payable by the Lessee under the Lease
shall include all amounts necessary to pay in full the Lease Balance, accrued interest and all
other obligations of the Lessee under the Operative Documents. The foregoing notwithstanding, the
parties hereto acknowledge and agree that the obligations of the Lessor hereunder and under the
Lease and the other Operative Documents are limited as provided in Section 18.9 of the
Lease.

     SECTION 2.5 Controlling Agreements. In the event of any conflict between this
Agreement and any other Operative Document, this Agreement shall control.

     SECTION 2.6 Permitted Use of Lease Balance. The Lessee and the Guarantor acknowledge
and agree that all amounts advanced by the Lessor on the Closing Date shall only be applied in
payment of the purchase price and related costs incurred to acquire the Leased Property and, to the
extent agreed to by the Lessor and the Lessee, Transaction Expenses approved by the Lessor, and all
other amounts advanced by the Lessor as part of the Lease Balance shall be applied as provided in
the Operative Documents.

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SECTION 3

CONDITIONS PRECEDENT; DOCUMENTS

     SECTION 3.1 Conditions to the Closing Date. All documents and instruments required
to be delivered on the Closing Date shall be delivered at the offices of the Lessor in New York,
New York. The Closing Date (the “Closing Date”) shall occur on the earliest date on which
the following conditions precedent shall have been satisfied, or waived by the parties hereto
(acting directly or through their respective counsel), except that (i) the obligation of any party
hereto shall not be subject to such party’s own performance or compliance and (ii) waiver by the
Lessor of any condition shall be in such party’s sole and absolute discretion:

          (a) Documents. The following documents shall have been executed and delivered by the
respective parties thereto, and witnessed and acknowledged where appropriate:

          (i) Participation Agreement. Counterparts of this Agreement, duly executed by
the parties hereto, shall have been delivered to each of the parties hereto.

          (ii) Lease. The original of the Lease, together with the Lease Supplement,
each duly executed by the Lessor and the Lessee, provided that the Lease Supplement shall be
executed and acknowledged in recordable form, shall have been delivered to the parties
thereto.

          (iii) Guaranty. The original of the Guaranty, duly executed by the Guarantor,
shall have been delivered to the Lessor.

          (iv) Financing Statements. The Lessee Financing Statements, in form
satisfactory to the Lessor, shall have been delivered to the Lessor.

          (v) Title and Title Insurance. The Lessor shall receive from the Title
Insurance Company an Owner’s Policy in the aggregate amount of the Lease Balance (the
“Title Policy”) issued by the Title Insurance Company and acceptable in form and
substance to the Lessor. The Title Policy (A) shall be dated as of the Closing Date, and
(B) to the extent permitted under Applicable Law, shall include coverage over the general
exceptions to such Title Policy and shall contain such affirmative endorsements as to
easements and rights-of-way, encroachments, the nonviolation of covenants and restrictions,
survey matters, creditor’s rights (if available), tax parcel, access, contiguity and other
matters as the Lessor shall request and are available in the Commonwealth of Virginia.

          (vi) Survey. The Lessee shall have delivered, or shall have caused to be
delivered, to the Lessor, at the Lessee’s expense, an accurate ALTA Survey of the Leased
Property certified to the Lessor and the Title Insurance Company acceptable to the Lessor
and showing no state of facts unsatisfactory to the Lessor and prepared by a licensed
surveyor reasonably satisfactory to Lessor.

          (vii) Resolutions and Incumbency Certificates, etc. The Lessor shall have
received (A) a certificate of the Secretary or an Assistant Secretary of

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Terremark, as the Sole Member of the Lessee and as Guarantor, attaching and certifying
as to (1) the resolution of Terremark’s Board of Directors (or a duly authorized committee
of such Board) duly authorizing the execution, delivery and performance by Terremark, as
such Sole Member on behalf of the Lessee and as Guarantor, of each Operative Document to
which the Lessee or Guarantor (as applicable) is or will be a party, (2) the incumbency and
signatures of Persons authorized to execute and deliver Operative Documents on Terremark’s
behalf (as Sole Member of the Lessee and as Guarantor), (3) Terremark’s certificate of
incorporation, certified as of a recent date by the Secretary of State of the state of
Terremark’s incorporation, (4) Terremark’s by-laws and (5) the Lessee’s operating agreement
and all other documents and certificates evidencing the due organization of the Lessee, and
(B) good standing certificate for Terremark and the Lessee from the appropriate officer of
the state in which each such entity is organized and of the state in which the Leased
Property is located, all of which shall be in form and substance satisfactory to the Lessor.

          (viii) Recording Fees; Transfer Taxes. The Lessor shall have received
satisfactory evidence of the filing or recording, as applicable, and the payment by the
Lessee of all recording and filing fees and taxes with respect to any recordings or filings
made, of the Lease Supplement and any other documents that are to be recorded in connection
with the Overall Transaction (as the same may be approved by the Lessor).

          (ix) Opinion of Lessee’s and Guarantor’s Counsel. Opinions of counsel to the
Lessee and the Guarantor, dated the Closing Date, shall have been delivered and addressed to
the Lessor, which opinions shall be in form and substance acceptable to the Lessor.

          (x) Delivery of Other Documents and Instruments; Satisfaction of Conditions.
The Lessee shall have delivered to the Lessor such other documents and instruments as may be
required by the Lessor, including, without limitation, such documents and instruments as may
be required or contemplated by the Commitment, and the Lessee shall have satisfied all other
conditions set forth in such Commitment.

          (b) Litigation. No action or proceeding shall have been instituted or threatened nor
shall any governmental action, suit, proceeding or investigation be instituted or threatened by any
Governmental Authority, nor shall any order, judgment or decree have been issued or proposed to be
issued by any Governmental Authority, to set aside, restrain, enjoin or prevent the performance of
this Agreement or any of the other Operative Documents or any transaction contemplated hereby or
thereby, which could result in a Material Adverse Effect or which could otherwise materially
adversely affect the Leased Property or the transactions contemplated by the Operative Documents.

          (c) Legality. In the opinion of the Lessor or its counsel, the transactions
contemplated by the Operative Documents shall not violate any Applicable Law, and no change shall
have occurred or been proposed in Applicable Law that would make it illegal for the Lessor to
participate in any of the transactions contemplated by the Operative Documents.

4

 

          (d) No Events. (i) No Default, Event of Default, Event of Loss or Event of Taking
shall have occurred and be continuing and (ii) no action shall be pending or threatened by a
Governmental Authority to initiate a Condemnation or an Event of Taking, and (iii) the Lessee shall
not be in default under the Falcon Purchase Agreement, the Purchase Agreement or any other lease or
loan arrangement or obligation for borrowed money between the Lessor or any Affiliate of the Lessor
and the Lessee or the Guarantor or any of its or their Affiliates.

          (e) Representations. Each representation and warranty of the parties hereto or to any
other Operative Document contained herein or in any other Operative Document shall be true and
correct as though made on and as of the Closing Date.

          (f) No Material Adverse Effect. There shall not have occurred any event or events,
individually or in the aggregate, having a Material Adverse Effect since March 31, 2006.

          (g) Fees and Transaction Expenses. The Lessee or Guarantor shall have paid the fees
and expenses of the Lessor and their respective counsel and any Standby Fees then due and payable.

          (h) Taxes. All taxes payable on or prior to the Closing Date in connection with (i)
the execution, delivery, recording or filing of any of the Operative Documents, (ii) the extension
of credit evidenced by the Operative Documents, and (iii) the Leased Property shall have been paid
in full or otherwise provided for by the Lessee. All sales taxes and duties related to the
transactions contemplated by the Operative Documents due and payable as of the Closing Date have
been paid or otherwise provided for by the Lessee.

SECTION 4

REPRESENTATIONS AND COVENANTS

     SECTION 4.1 Representations and Covenants of the Lessee and Guarantor. Effective as
of the date of execution hereof and on the Closing Date, each of the Lessee and the Guarantor
represents, warrants and covenants to each of the other parties hereto as follows:

          (a) Organization; Corporate Powers. Each of the Sole Member of the Lessee, the
Lessee and the Guarantor (i) is a corporation (with respect to Terremark as such Sole Member and as
Guarantor) and a limited liability company (with respect to the Lessee) duly organized, validly
existing and in good standing under the laws of its jurisdiction of incorporation or formation (as
applicable), and each of such Sole Member and the Lessee is qualified to do business in the
Commonwealth of Virginia, (ii) is duly qualified as a foreign corporation and in good standing
under the laws of each jurisdiction where such qualification is required and where the failure to
be duly qualified and in good standing, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect and (iii) has all requisite corporate power and
authority to own, operate and encumber its property and assets and to conduct its business as
presently conducted and as proposed to be conducted in connection with and following the
consummation of the transactions contemplated by the Operative Documents.

          (b) Authority. Each of the Sole Member of the Lessee, the Lessee and the Guarantor
has the requisite power and authority to execute, deliver and perform the Operative Documents
executed or to be executed by it. The execution, delivery and performance (and the

5

 

recording or filing, as the case may be) of the Operative Documents, and the consummation of
the transactions contemplated on the part of the Lessee and the Guarantor hereby and thereby, have
been duly approved by the Board of Directors of Terremark, as the Sole Member of the Lessee and as
the Guarantor, and no corporate or other proceedings on the part of the Sole Member of the Lessee,
the Lessee or the Guarantor are necessary for the execution, delivery and performance by the Lessee
and the Guarantor of the Operative Documents or the consummation of the transactions so
contemplated thereby.

          (c) Due Execution and Delivery of Operative Documents. The Operative Documents
executed by the Lessee and/or the Guarantor have been duly executed and delivered (and recorded or
filed, as the case may be) by the Lessee and the Guarantor, as applicable, and, in each case,
constitute its and their legal, valid and binding obligations, enforceable against each of them in
accordance with the respective terms of each such Operative Document, except as enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or limiting
creditors’ rights generally or by general equitable principles.

          (d) No Conflict. The execution, delivery and performance by each of the Lessee and
the Guarantor of each Operative Document to which the Lessee and/or the Guarantor is a party, and
each of the transactions contemplated hereby and thereby do not and will not (i) violate any
Applicable Law or Contractual Obligation of the Lessee or the Guarantor, (ii) result in or require
the creation or imposition of any Lien whatsoever on the Leased Property (other than Permitted
Liens) or on any asset of the Lessee or the Guarantor except as contemplated by the Operative
Documents or (iii) require any approval of any Persons holding voting power with respect to the
affairs of either the Lessee or the Guarantor or any other consent or approval which has not been
obtained.

          (e) Governmental Consents. Except as have been made, obtained or given, no filing or
registration with, consent or approval of, notice to, with or by any Governmental Authority is
required to authorize, or is required in connection with, the execution, delivery and performance
by the Lessee or the Guarantor of the Operative Documents, the use of the funds provided by the
Lessor as provided in this Agreement, or the legality, validity, binding effect or enforceability
of any Operative Document.

          (f) Governmental Regulation. Neither the Lessee nor the Guarantor is (i) an
“investment company” within the meaning of the Investment Company Act of 1940, as amended or (ii) a
“holding company” as defined in, or subject to regulation under, the Public Utility Holding Company
Act of 1935, as amended.

          (g) Requirements of Law. Each of the Lessee and the Guarantor is in compliance with
all Requirements of Law applicable to the Lessee, the Guarantor and its or their business and the
Leased Property except for violations which, individually or in the aggregate, would not have a
Material Adverse Effect.

          (h) Rights in Respect of the Leased Property. Neither the Lessee nor the Guarantor
nor any of their Affiliates is a party to any contract or agreement to sell any interest in the
Leased Property or any part thereof other than pursuant to this Agreement, the Lease and the other
Operative Documents.

6

 

          (i) Hazardous Materials.

          (i) Except as are in full compliance with all Environmental Laws, there are no
Hazardous Materials present at, upon, under or within the Leased Property or released or
transported to or from the Leased Property.

          (ii) No Governmental Actions have been taken, or are in process or, to the Lessee’s
knowledge, have been threatened, which could subject the Leased Property or the Lessor to
any Claims or Liens under any Environmental Law which could have an adverse effect on the
Lessor, the Lessee or the Leased Property, or could result in a diminution of the value,
utility, usefulness or useful life of the Leased Property.

          (iii) The Lessee has or will obtain as and when required all Environmental Permits
necessary to operate and maintain the Leased Property, all in accordance with Environmental
Laws, and the Lessee will comply, and will cause the Leased Property to comply, with all
such Environmental Permits.

          (iv) With respect to the Leased Property, no written notice, notification, demand,
request for information, citations, summons, complaint or order has been issued or filed to
or with respect to the Lessee, and no penalty has been assessed on the Lessee or, to the
Lessee’s knowledge, the Leased Property, and no investigation or review is pending or, to
the Lessee’s knowledge, threatened by any Governmental Authority or other Person with
respect to any alleged violation or liability of the Lessee or the Leased Property under any
Environmental Law. To the Lessee’s knowledge, no written notice, notification, demand,
request for information, citation, summons, complaint or order has been issued or filed to
or with respect to any other Person, and no penalty has been assessed on any other Person,
and no investigation or review is pending or threatened by any Governmental Authority or
other Person relating to the Leased Property with respect to any alleged violation or
liability under any Environmental Law by any other Person.

          (v) The Leased Property and each portion thereof are presently in compliance with all
Environmental Laws, and, except as previously disclosed to the Lessor in writing, there are
no present or past facts, circumstances, activities, events, conditions or occurrences with
respect to environmental matters regarding the Leased Property (including, without
limitation, the Release or presence of Hazardous Materials) that could reasonably be
expected to: (A) form the basis of a Claim against the Leased Property, the Lessor or the
Lessee, (B) cause the Leased Property to be subject to any restrictions on ownership,
occupancy, use or transferability under any Environmental Law, (C) require the filing or
recording of any notice or restriction relating to the presence of Hazardous Materials in
the real estate records in the county or other appropriate municipality in which the Leased
Property is located or with any other applicable Governmental Authority, (D) prevent or
interfere with the continued operation and maintenance of the Leased Property as
contemplated by the Operative Documents, or (E) result in a diminution of the value,
usefulness or useful life of the Leased Property.

7

 

          (j) Leased Property. The Lessee will cause the condition and use of the Leased
Property to conform with all conditions or requirements of all permits and approvals issued with
respect to the Leased Property, and the present use of the Leased Property and the Lessee’s future
intended use of the Leased Property under the Lease do not and will not violate any Applicable Law
(including, without limitation, all zoning and land use laws and all Environmental Laws). No
notices, complaints or orders of violation or non-compliance have been issued or, to the Lessee’s
knowledge, threatened or contemplated by any Governmental Authority with respect to the Leased
Property or any present or intended future use thereof. All agreements, easements and other
rights, public or private, which are necessary to permit the lawful use and operation of the Leased
Property for the Permitted Use and which are necessary to permit the lawful intended use and
operation of all presently intended utilities, driveways, roads and other means of egress and
ingress to and from the same will be obtained as and when required for the development, occupancy,
use and operation of the Leased Property and will remain in full force and effect, and there is no
pending modification or cancellation of any of the same. All utility services necessary for use of
the Leased Property (including without limitation, electric, gas, telephone, water and sewer
service) are or will be available to the Leased Property. All necessary easements to provide such
utility services to the Leased Property have been or will be obtained as and when needed for the
development, occupancy, use and operation of the Leased Property.

          (k) Taxes. Except as disclosed to the Lessor in writing prior to the Closing Date,
the Lessee, the Guarantor and its or their Affiliates have filed all tax returns that are required
to have been filed in any jurisdiction and have paid all taxes shown to be due and payable on such
returns and all other taxes and assessments levied upon them or their properties, assets, income or
franchises, to the extent such taxes and assessments have become due and payable and before they
have become delinquent. The charges, accruals and reserves on the books of the Lessee and the
Guarantor in respect of Federal, state or other taxes for all fiscal periods are adequate. No tax
liens have been filed and no Claims have been asserted with respect to any such taxes. There are
no pending investigations of Lessee or the Guarantor by any taxing authority.

          (l) ERISA. Neither the Lessee nor the Guarantor nor any of their ERISA Affiliates has
incurred or is reasonably expected to incur any accumulated funding deficiency as defined in ERISA
and the regulations promulgated thereunder. No Reportable Event has occurred or is reasonably
expected to occur with respect to any Pension Plan involving the Lessee, the Guarantor or any of
their ERISA Affiliates. The transactions contemplated by this Agreement and the other Operative
Documents do not constitute a prohibited transaction under Section 406(a) of ERISA or Section 4975
of the Code for which an exemption from the prohibited transaction rules is not applicable. The
PBGC has not asserted that the Lessee, the Guarantor or any of their ERISA Affiliates has or have
incurred any liability in connection with any Pension Plan, nor has any Lien attached (nor any
Person threatened to attach a Lien) on any property of the Lessee, the Guarantor or any of their
ERISA Affiliates as a result of its or their failure to comply with ERISA or regulations
promulgated thereunder. Neither the Lessee, the Guarantor nor any of their ERISA Affiliates has
contributed to, has an obligation to contribute to, or has liability, including Withdrawal
Liability, with respect to a “multi-employer plan”, within the meaning of Section 4001(a)(3) of
ERISA.

8

 

          (m) Solvency. The transactions contemplated by this Agreement and the other Operative
Documents have not been entered into by the Lessee or the Guarantor in contemplation of its or
their insolvency nor have such transactions been entered into with the intent to hinder, delay or
defraud the equity holders or the creditors of the Lessee or the Guarantor. Neither the Lessee nor
the Guarantor is, as of the date of this Agreement, “insolvent” as that term is defined in 11
U.S.C. § 101(34), nor will the consummation of the transactions contemplated by this Agreement
render the Lessee or the Guarantor insolvent (giving effect to the fair valuation of its assets) or
result in the Lessee or the Guarantor having unreasonably small capital for the conduct of its or
their respective business.

          (n) Title to Collateral. The Lessee owns and will own good and marketable title to
the Leased Property which is pledged as security for its obligations pursuant to the Operative
Documents, free and clear of all Liens and encumbrances, except for Permitted Liens, and except
that the Lessor holds record title to the Leased Property. The Lease Supplement creates a valid
and enforceable Lien on the Leased Property and all other collateral covered thereby for the
benefit of the Lessor, and, upon the filing of UCC financing statements and the Lease Supplement in
the appropriate filing offices in the Commonwealth of Virginia, the Lessor will have a first
priority perfected Lien on the Leased Property which is pledged as security for the Lessee’s
obligations under the Operative Documents.

          (o) Financial Statements. The audited financial statements of the Guarantor for the
fiscal year ending as of March 31, 2006 and the unaudited financial statements for fiscal quarterly
periods ending as of June 30, 2006 and September 30, 2006, heretofore furnished to the Lessor, are
true and complete (subject, in the case of such quarterly statements, to normal year-end
adjustments), have been prepared in accordance with GAAP consistent with the respective prior
fiscal periods of the Guarantor, omit no material contingent liabilities of any kind that are not
disclosed or otherwise reflected therein, and fairly present the financial condition and results of
operations and cash flows of the Guarantor and its consolidated Subsidiaries as of the date thereof
and for such periods. Since March 31, 2006, there has been no material adverse change in the
condition (financial or otherwise), affairs, assets, properties, operations, prospects, or
businesses of the Guarantor and its Subsidiaries.

          (p) Other Information. All information (other than information presented in financial
statements) heretofore furnished by the Lessee and/or the Guarantor to the Lessor for purposes of
or in connection with this Agreement or any of the other Operative Documents or any transaction
contemplated hereby or thereby is, and all such information hereafter furnished by the Lessee,
and/or the Guarantor to the Lessor will be true, and accurate in all material respects on the date
as of which such information is stated or certified, and such information does not and will not
omit to state any information, the omission of which could cause such information to be false or
misleading.

          (q) Litigation and Contingent Obligations. There is no litigation, arbitration,
governmental investigation, proceeding or inquiry pending or, to the knowledge of the Lessee or the
Guarantor, threatened against or affecting the Lessee or the Guarantor (including, without
limitation, any such action involving Environmental Laws) which, in either case, could reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect, or could
adversely affect its or their right to enter into the Operative Documents and the transactions

9

 

contemplated thereby or that challenges the validity or enforceability of the Operative
Documents.

          (r) No Proceedings with Respect to Leased Property. There is no action, suit or
proceeding (including any proceeding with respect to a Condemnation or under any Environmental Law)
pending or, to the best of the Lessee’s and the Guarantor’s knowledge, threatened with respect to
or affecting the Leased Property or which could adversely affect the development, occupancy, use,
operation, title to, utility, useful life or value of the Leased Property or any portion thereof.

          (s) Intentionally Omitted.

          (t) Licenses, Approvals, Necessary Permits, etc. All licenses, approvals,
authorizations, consents and permits applicable to the Lessee required for the construction, use or
operation of the Leased Property, have, in each case, either been obtained from the appropriate
Governmental Authorities having jurisdiction or from private parties, as the case may be, or will
be obtained from the appropriate Governmental Authorities having jurisdiction or from private
parties, as the case may be, as soon as the acquisition of that permit is necessary or appropriate
and prior to commencing any such construction, use or operation for which such license, approval,
authorization, consent or permit is required. To the best knowledge of the Lessee and Guarantor,
the Leased Property does not include any cemetery, Native American burial ground or village or any
other matter of historic or archaeological significance that would require the notification or
consent of any state, local or federal agency or any third party (including, without limitation,
any agency of the Commonwealth of Virginia) in connection with any excavation or construction
thereon.

          (u) No Transfer Taxes. No sales, use, excise, transfer or other tax, fee or
imposition shall result from the sale, transfer, lease or purchase of any portion of the Leased
Property, except such taxes, fees or impositions that will have been paid in full as and when due.

          (v) Location of Chief Executive Office and Principal Place of Business, etc. The
chief executive office and principal place of business of the Lessee are at Lessee’s Address set
forth in Section 8.2 hereof. The Lessee is a limited liability company organized under the
laws of the State of Florida whose Sole Member is Terremark. The Lessee and such Sole Member are
each qualified to do business in the Commonwealth of Virginia. The Lessee shall keep its company
records concerning the Leased Property and the Operative Documents at such chief executive office
or, after thirty (30) days prior notice to the Lessor, at such other office specified in such
notice.

          (w) No Default. No Default or Event of Default, Event of Loss or Event of Taking has
occurred and is continuing or, upon giving effect to the transactions contemplated hereby, would
occur. Neither the Lessee nor Guarantor is in default in the payment or performance of any of its
Material obligations or in the performance of any Material contract, agreement or other instrument
to which it is a party or by which it or any of its assets may be bound and which will continue to
exist subsequent to the date hereof, which default could affect the Lessee’s right to enter into
this Agreement or the other Operative Documents, the validity or

10

 

effectiveness thereof or the ability of Lessee or the Guarantor to perform its obligations
hereunder and thereunder or could have a Material Adverse Effect.

          (x) Representations Truthful. All representations and warranties of Lessee and the
Guarantor in this Agreement and the other Operative Documents are true and correct and all
covenants set forth therein will be performed and observed by the Lessee and the Guarantor.

          (y) No Broker. Except for Scheer Partners, no broker’s commission or finder’s fee
relating to or in connection with the transactions contemplated in this Agreement or the other
Operative Documents is due. The Lessee agrees to pay all Standby Fees to Lessor or its Affiliate,
as applicable, as and when due.

     SECTION 4.2 Tax Treatment. Each of the Lessee and the Guarantor agrees that neither
it nor any member of any affiliated group of which it is or may become a member (whether or not
consolidated or combined returns are filed for such affiliated group for Federal, state or local
income Tax purposes) will at any time take any action, directly or indirectly, or file any return
or other document inconsistent with the intended income Tax treatment set forth in Section 2.3
hereof. Each of the Lessee and the Guarantor agrees that the Lessee, the Guarantor and any such
Affiliates will file such returns, maintain such records, take such actions and execute such
documents as may be appropriate to facilitate the realization of such intended income Tax
treatment.

SECTION 5

ADDITIONAL COVENANTS OF LESSEE AND GUARANTOR

     SECTION 5.1 Qualification as to Corporate Status; Fundamental Changes. Terremark, as
Sole Member of the Lessee and as the Guarantor, shall remain a validly existing corporation
organized under the laws of the State of Delaware, and the Lessee shall remain a valid existing
limited liability company organized under the laws of the State of Florida. Terremark, as the Sole
Member of the Lessee, and the Lessee shall remain qualified to do business in the Commonwealth of
Virginia. The Lessee and Terremark, as the Sole Member of the Lessee and as Guarantor, covenant
and agree that the Lessee shall not (i) enter into any transaction of merger or consolidation or
amalgamation, or (ii) liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or (iii) convey, sell, lease, transfer or otherwise dispose of, in one transaction or
a series of transactions, all or any interest in the Lessee or the Leased Property or all or any
substantial part of any of the Lessee’s other business or assets, whether now owned or hereafter
acquired.

     SECTION 5.2 Further Assurances. Each of the Lessee and the Guarantor shall, at its
own expense, promptly, and duly execute and deliver such further documents and assurances and take
such further action as any party to this Agreement may from time to time reasonably request in
order to more effectively carry out the intent and purpose of this Agreement and the other
Operative Documents and to establish and protect the rights and remedies created or intended to be
created in favor of any such Person hereunder and under the other Operative Documents. Upon the
written request of the Lessor, the Lessee, at its own cost and expense, will cause all financing
statements (including precautionary financing statements), fixture filings and other similar
documents to be recorded or filed at such places and times in such manner as may be

11

 

necessary to preserve, protect and perfect the interest of the Lessor in the Leased Property
as contemplated by the Operative Documents.

SECTION 5.3 Reporting; Inspections.

          (a) The Lessee and the Guarantor shall deliver or cause to be delivered to the Lessor and/or
its Affiliates such financial reports as may be required by the Purchase Agreement.

          (b) The Lessee and the Guarantor agree to permit the Lessor (or such representatives as the
Lessor may reasonably designate), at Lessee’s sole cost, expense and risk, at any time during
normal business hours after prior reasonable notice and subject to the Lessee’s reasonable security
procedures (other than in case of an emergency) to inspect the Leased Property and to discuss the
condition (financial and otherwise) of the Lessee and/or the Guarantor and its or their operations,
prospects, properties, assets, business and affairs and the status of the Leased Property with
appropriate officers of the Lessee, all such discussions and inspections to be at such times and as
often as the Lessor may reasonably request.

     SECTION 5.4 Compliance with Law. Each of the Lessee and the Guarantor will comply
with all Applicable Law, ordinances or governmental rules or regulations to which each of them is
subject and will obtain and maintain in effect all licenses, certificates, permits, franchises and
other governmental authorizations necessary to the ownership of its properties or to the conduct of
its businesses, in each case to the extent necessary to ensure that non-compliance with such laws,
ordinances or governmental rules or regulations or failures to obtain or maintain in effect such
licenses, certificates, permits, franchises and other governmental authorizations could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     SECTION 5.5 Payment of Taxes and Claims. Each of the Lessee and the Guarantor will
file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes
shown to be due and payable on such returns and/or otherwise required to be paid and all other
taxes, assessments, governmental charges, or levies imposed on it or any of its properties, assets,
income or franchises, to the extent such taxes and assessments have become due and payable and
before they have become delinquent and all claims for which sums have become due and payable that
have or might become a Lien on properties or assets of the Lessee, the Guarantor or any Subsidiary,
provided that neither the Lessee nor the Guarantor need pay any such tax or assessment or claims if
(i) the amount, applicability or validity thereof is contested by the Lessee or the Guarantor on a
timely basis in good faith and in appropriate proceedings, and the Lessee or the Guarantor has
established adequate reserves therefor in accordance with GAAP on the books of the Lessee or the
Guarantor or (ii) the nonpayment of all such taxes and assessments in the aggregate could not
reasonably be expected to have a Material Adverse Effect.

     SECTION 5.6 Maintenance of Properties. Each of the Lessee and the Guarantors will
maintain and keep, or cause to be maintained and kept, its properties in good repair, working order
and condition (other than ordinary wear and tear), so that the business carried on in connection
therewith may be properly conducted at all times, provided that this Section 5.4(c) shall
not prevent the Lessee or the Guarantor from discontinuing the operation and the maintenance of any
of its properties (other than the Leased Property) if such discontinuance is

12

 

desirable in the conduct of its business and such discontinuance could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

     SECTION 5.7 Notice of Change of Executive Offices, Change of Name. Each of the
Lessee and the Guarantor shall furnish to Lessor notice on or before the 30th day prior to any
relocation of its chief executive office or any change in its name or any change to its state of
organization.

     SECTION 5.8 Environmental Covenants and Remedies.

          (a) Environmental Covenants. Lessee covenants that it shall:

          (i) comply in all respects with all applicable Environmental Laws, including the
effecting of environmental responses or remediation, structural modifications, or other
environmental cures to maintain or ensure compliance with Environmental Laws, if applicable;

          (ii) obtain and maintain at all times during the effectiveness of this Agreement, all
Environmental Permits that are now or hereafter required with respect to the Leased Property
and comply with all terms and conditions of all Environmental Permits now or hereafter
required;

          (iii) (x) keep the Leased Property free of Hazardous Materials and (y) not use Leased
Property or allow any other Person at any time during the effectiveness of this Agreement to
use the Leased Property to generate, manufacture, refine, produce or process any Hazardous
Material or to store, handle, transfer or transport any Hazardous Material on the Leased
Property, other than (as to both clause (x) and (y)) normal and lawful uses of such
Hazardous Materials, taking into account Lessee’s intended use of the Leased Property, which
will not diminish the Fair Market Sales Value of the Leased Property and which at all times
will comply with Environmental Laws;

          (iv) except as permitted by Environmental Laws and all other Applicable Law, not
construct, operate, maintain or allow to be located in, under or on the Leased Property any
(w) surface impoundments, (x) underground storage tanks, (y) asbestos or asbestos-containing
material, or (z) PCB-containing equipment, including transformers;

          (v) cause any alterations of, improvements or construction on, the Leased Property to
be done in accordance with Environmental Laws and Environmental Permits, and in connection
with any such modifications, improvements or construction, shall remove and dispose of or
otherwise remediate, in compliance with Environmental Laws, any Hazardous Materials present
upon the Leased Property and generated or encountered during such activity and required to
be removed or remediated pursuant to any Environmental Laws;

          (vi) promptly upon obtaining actual knowledge thereof, give to the Lessor notice of the
occurrence of any of the following events: (t) the failure of the

13

 

Leased Property, or the Lessee or any permitted assignee of the Lessee with respect to
the Leased Property, to comply with any Environmental Law in any manner whatsoever; (u) the
issuance by any Governmental Authority to the Lessee or any permitted assignee of the
Lessee, of any notice, complaint or order of violation or non-compliance of any nature with
regard to the Leased Property or the use thereof with respect to Environmental Laws; (v) any
notice of a pending or threatened, non-routine investigation to determine whether the
operations of the Lessee or any permitted assignee of the Lessee on the Leased Property are
in violation of any Environmental Law; (w) any notice from any Governmental Authority
requiring any corrective action with respect to the Leased Property or any portion thereof
under any Environmental Law; (x) the initiation of any private party judicial or
administrative action relating to violation of any Environmental Law in connection with the
use, occupancy or operation of the Leased Property; (y) the existence or threat of a Release
of a Hazardous Material at the Leased Property or any condition regulated by any
Environmental Law which is or must be reported to a Governmental Authority or that could
have a Material Adverse Effect upon the Leased Property; or (z) any other occurrence or
discovery or any condition at the Leased Property related to Environmental Laws and which
would constitute a Material Adverse Effect on the Leased Property; and

          (vii) if, despite the foregoing prohibitions, during the Lease Term (x) there is any
actual or threatened Release, which is not in compliance with Environmental Laws or
Environmental Permits or (y) Hazardous Materials on, in, under or at the Leased Property
which give rise to a liability or Claim under common law or any Environmental Law or
Environmental Permit, the Lessee shall, with all deliberate speed, in any and all such
occurrences and at its sole cost and expense, promptly take all applicable action required
under and taken in compliance with Environmental Laws and the reasonable instructions of the
Lessor to correct, remove, remediate, clean up, prevent, mitigate, monitor, evaluate,
investigate, assess or abate the Release of such Hazardous Material.

          (b) Certain Environmental Remedies. The Lessor shall have the right, but not the
obligation, through such representatives or independent contractors as it may determine, to enter
upon the Leased Property and to expend funds to:

          (i) cause one or more Environmental Site Assessments of the Leased Property to be
undertaken, if the Lessor in its reasonable discretion determines that such assessment is
appropriate. Such Environmental Site Assessments shall be reasonable in scope considering
the history and use of the Leased Property and the data available from prior reports;
provided, however, that the foregoing shall not limit or restrict the
reasonable discretion of Lessor’s engineers and consultants in formulating the exact
parameters of any such Environmental Site Assessment, which may include, without limitation,
(w) detailed visual inspections of the Leased Property, including without limitation, all
storage areas, storage tanks, drains, drywells and leaching areas; (x) the taking of soils
and surface and sub-surface water samples; (y) the performance of soils and ground water
analysis; and (z) the performance of such other investigations or analyses as are necessary
or appropriate and consistent with sound professional environmental engineering practice in
order for the Lessor to obtain a complete

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assessment of the compliance of the Leased Property and the use thereof with all
Environmental Laws and to make a determination as to whether or not there is any risk of
contamination in violation of Environmental Laws which violation could have a Material
Adverse Effect and whether or not (A) resulting from Hazardous Materials originating on,
under, or from any surrounding property, or (B) having a material adverse effect on any
surrounding property resulting from Hazardous Materials originating on, under, or from the
Leased Property;

          (ii) cure any breach of the environmental representations, warranties, covenants and
conditions made by or imposed upon Lessee under the Operative Documents, including, without
limitation, any Environmental Violation by Lessee or affecting the Leased Property;

          (iii) take all actions as are reasonably necessary to (i) prevent the migration of
Hazardous Materials on, under, or from the Leased Property to any other property; or (ii)
prevent the migration of any Hazardous Materials on, under, or from any other property to
the Leased Property;

          (iv) comply with, settle, or otherwise satisfy any Environmental Law as the same
relates to the Leased Property including, but not limited to, the payment of any funds or
penalties imposed by any Governmental Authority and the payment of all amounts required to
remove any Lien or threat of Lien on or affecting the Leased Property; and

          (v) comply with, settle, or otherwise satisfy any Environmental Laws or order of any
Governmental Authority, or cure, correct or abate any Environmental Violation or any
environmental condition on, or that threatens, the Leased Property and that could cause
damage or injury to the Leased Property or to any Person.

     SECTION 5.9 Use of Proceeds; Margin Regulations. The Lessee will apply the funds
provided by the Lessor as the Lease Balance as set forth in Sections 2.2 and 2.6
hereof. No part of the funds provided by the Lessor as the Lease Balance will be used, directly or
indirectly by Lessee, for the purpose of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the
purpose of buying or carrying or trading in any securities.

     SECTION 5.10 Increased Costs; Funding Losses. 

          (a) Increased Costs. If any change in, or the introduction, adoption, effectiveness,
interpretation, reinterpretation or phase-in of, any law or regulation, directive, guideline,
decision or request (whether or not having the force of law) of any court, central bank regulator
or other Governmental Authority (“Change in Law”) imposes, modifies, affects or deems
applicable any reserve, special deposit, capital adequacy or other requirement required or expected
to be maintained by the Lessor or any participant in or assignee of any interest in the Lease
Balance (each, a “Participant”) directly or by its parent company (including, without
limitation, any reserve requirements specified under regulations issued from time to time by the
Board of Governors of the Federal Reserve System and then applicable to assets or liabilities

15

 

consisting of and including “Eurocurrency Liabilities” as defined in Regulation D of such
Board of Governors), or shall impose on the Lessor or any Participant (or its funding office) or on
the London interbank market any other condition or any tax, duty or other charge with respect to or
otherwise affecting the maintenance of the Lease Balance on a LIBO Rate basis, and the Lessor or
such Participant determines (in its sole and absolute discretion) that the rate of return on it or
its parent’s capital as a consequence of the funding made by the Lessor or such Participant
hereunder to fund its share of the Lease Balance is reduced to a level below that which the Lessor
or such Participant or its parent could have achieved but for the occurrence of any such
circumstances, or prevents or would prevent the Lessor or any Participant from being legally
entitled to a complete exemption from withholding Taxes with respect to the Lease Balance, then, in
any such case, upon written notification from time to time by the Lessor or such Participant to the
Lessee, the Lessee shall, within five (5) Business Days following receipt of the statement referred
to in the next sentence, pay to the Lessor or such Participant, as Supplemental Rent, additional
amounts sufficient to compensate the Lessor or such Participant or its parent for such reduction in
rate of return (on a Grossed-Up Basis). A statement of the Lessor or a Participant as to any such
additional amount or amounts (including calculations thereof in reasonable detail) shall, in the
absence of manifest error, be conclusive and binding on the Lessee. In determining such amount,
the Lessor or each Participant, as applicable, shall use any method of averaging or attribution
that it (in its reasonable discretion) shall deem applicable.

          (b) Funding Losses. The Lessee shall pay to the Lessor or any Participant as
Supplemental Rent, such amounts as may be necessary to reimburse the Lessor or any Participant for
any loss or expense (including, without limitation, any administration costs) incurred (including
any loss or expense incurred by reason of the liquidation or reemployment of deposits or other
funds acquired by the Lessor or any Participant to make, continue or maintain any portion of its
investment in the Lease Balance on a LIBO Rate basis) as a result of (x) the failure of the Lessee
to close on the Closing Date or to cause the Lease Balance to be applied to the purchase of the
Leased Property and to Transaction Expenses on the Closing Date or (y) any payment of all or any
portion of the Lease Balance for any reason on a date other than a Rent Payment Date, including,
without limitation, by reason of acceleration (the amount of such loss or expense, the “Break
Funding Amount”). The Lessor or such Participant shall promptly notify the Lessee in writing
of the amount of any claim under this paragraph, the reason or reasons therefor and the additional
amount required fully to compensate the Lessor or any Participant for such loss or expense. Such
written notice (which shall include calculations in reasonable detail) shall, in the absence of
manifest error, be conclusive and binding on the Lessee.

          (c) Gross Up. With respect to any payment which the Lessee is required to pay or
reimburse under any other provision of this Section 5.10 (each such payment or
reimbursement under this Section 5.10, (each such payment or reimbursement under this
Section 5.10, an “original payment”) and which original payment constitutes income
to the Lessor or any Participant when accrued or received, then the Lessee shall pay to the Lessor
or such Participant on demand the amount of such original payment on a grossed-up basis such that,
after subtracting all Taxes imposed on the Lessor or such Participant with respect to such
grossed-up payment by the Lessee (assuming for this purpose that the Lessor or such Participant was
subject to taxation at the highest Federal and applicable, state and local marginal rates
applicable to widely held corporations for the year in which such income is taxable), such amount
(i.e., the grossed-up payment minus the taxes thereon) shall be equal to the original payment to be
received or

16

 

reimbursed (net of any credits, deductions or other tax benefits then actually recognized that
arise from the payment by the Lessor or such Participant of any amount, including taxes, for which
the payment to be received is made) (“Grossed-Up Basis”).

     SECTION 5.11 Assets Control Regulations and Anti-Money Laundering. 

          (a) OFAC. None of the Lessee, Guarantor or any of its or their Subsidiaries (i) is a
person whose property or interest in property is blocked or subject to blocking pursuant to Section
1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii)
engages in any dealings or transactions prohibited by Section 2 of such executive order, or is
otherwise associated with any such person in any manner violative of Section 2, or (iii) is a
person on the list of Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order.

          (b) Patriot Act; Foreign Corrupt Practices Act. The Lessee, Guarantor and each of
their Subsidiaries is in compliance, in all material respects, with the Patriot Act. No part of
the funding provided by the Lessor will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

     SECTION 5.12 Purchase Agreement. Each of the Lessee and the Guarantor (a)
acknowledges that it has made or is deemed to have made certain representations, warranties and
covenants pursuant to the Purchase Agreement and that the representations, warranties and covenants
set forth in the Operative Documents are in addition to, and not in lieu of, the representations,
warranties and covenants set forth in the Purchase Agreement and (b) agrees that it shall comply
with all of its covenants and agreements provided for in the Purchase Agreement and in the
Operative Documents.

SECTION 6

TRANSFERS BY LESSOR AND HOLDERS

     SECTION 6.1 Lessor Transfers. All or any part of the interest of the Lessor in, to
or under this Agreement, the other Operative Documents and/or the Leased Property may be assigned
or transferred by the Lessor at any time without the consent of the Lessee to any assignee or
transferee, including any Affiliate of the Lessor.

     SECTION 6.2 Participations. The Lessor may, without the consent of the Lessee, sell
participations to one or more Persons (such Persons being hereinafter referred to, collectively, as
“Participants”) in all or a portion of its rights and obligations under this Agreement, the
other Operative Documents or the Leased Property; provided, however, that (i) the
Lessor shall remain responsible for the performance of the Lessor’s obligations (if any) under this
Agreement and the other Operative Documents to which the Lessor is a party, (ii) the Participant
shall be entitled to the cost protection and tax indemnification provisions contained in this
Agreement, (iii) the

17

 

Lessee shall continue to deal solely and directly with the Lessor in connection with the
Lessor’s rights and obligations under this Agreement and the other Operative Documents to which it
is a party and in connection with the cost protection and tax indemnification provisions of this
Agreement and the other applicable and Operative Documents to which any Participant is entitled
pursuant to this Section 6.2, and (iv) the Lessor shall retain the sole right and
responsibility to enforce the obligations of the Lessee relating to this Agreement, the Lease and
the other Operative Documents.

SECTION 7

INDEMNIFICATION

     SECTION 7.1 General Indemnification. The Lessee agrees, whether or not any of the
transactions contemplated hereby shall be consummated, to assume liability for, and to indemnify,
protect, defend, save and keep harmless, jointly and severally, each Indemnitee, on an After-Tax
Basis, from and against, any and all Claims by any Person that may be imposed on, incurred by or
asserted against such Indemnitee, whether or not such Indemnitee shall also be indemnified as to
any such Claim by any other Person and in any way relating to or arising out of:

          (a) any of the Operative Documents or any of the transactions contemplated thereby, and any
amendment, modification or waiver in respect thereof (except to the extent the Lessor’s actions
with respect to such matters are in material violation of Applicable Law);

          (b) the Leased Property or any part thereof or interest therein;

          (c) the purchase, design, construction, preparation, installation, inspection, delivery,
non-delivery, acceptance, rejection, ownership, management, possession, operation, rental, lease,
sublease, repossession, maintenance, repair, alteration, modification, addition or substitution,
storage, transfer or title, redelivery, use, financing, refinancing, disposition, operation,
condition, sale (including, without limitation, any sale pursuant to the Lease), return or other
disposition of all or any part or any interest in the Leased Property or the imposition of any Lien
other than a Lessor Lien or incurring of any liability to refund or pay over any amount as a result
of any Lien thereon, including without limitation (i) Claims or penalties arising from any
violation of law, contract (involving contracts of Lessee) or in tort (strict liability or
otherwise), (ii) latent or other defects, whether or not discoverable, (iii) any Claim based upon a
violation or alleged violation of the terms of any restriction, easement, condition or covenant or
other matter affecting title to the Leased Property, (iv) the making of any Alterations in
violation of any standards imposed by any insurance policies required to be maintained by the
Lessee pursuant to the Lease which are in effect at any time with respect to the Leased Property or
any part thereof, (v) any Claim for patent, trademark or copyright infringement and (vi) Claims
arising from any public improvements with respect to the Leased Property resulting in any change or
special assessments being levied against the Leased Property or any Claim for utility “tap-in”
fees;

          (d) the breach or alleged breach by the Lessee or any of its Affiliates of any representation,
warranty or covenant made by any of them or deemed made by any of them in any Operative Document or
any certificate required to be delivered under any Operative Document;

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          (e) the retaining or employment of any broker, finder or financial advisor by the Lessee or
any of its Affiliates to act on behalf of any of them in connection with this Agreement, or the
authorization of any broker or financial adviser retained or employed by any other Person who or
which acts on behalf of the Lessee or any of its Affiliates, or the incurring of any fees or
commissions to which the Lessor or any of its Affiliates might be subjected by virtue of the Lessor
entering into the transactions contemplated by this Agreement;

          (f) the existence of any Lien (other than a Lessor Lien) on or with respect to the Leased
Property and/or Alterations during the course of any construction (including any construction
materials), any Basic Rent or Supplemental Rent, including any Liens which arise out of the
possession, use, occupancy, construction, repair or rebuilding of or title to or interest of any
Person in the Leased Property or by reason of labor or materials furnished or claimed to have been
furnished to the Lessee or any of its Affiliates or any of their contractors or agents or by reason
of the financing of any personalty or equipment purchased or leased by the Lessee or any of its
Affiliates or Alterations constructed by the Lessee or any of its Affiliates;

          (g) any breach of any requirement, condition, restriction or limitation affecting title to any
part of the Leased Property;

          (h) (i) any failure of title to any part of the Leased Property or failure (including the
failure to create), lack of perfection, recordation, or loss of priority of the lien of any Lease,
the Lease Supplement or the security interests in personal property created thereby, or (ii) the
unenforceability, as a matter of law or equity, in whole or in part, of any Operative Document;

          (i) any violation of Applicable Law, rule, regulation or order by the Lessee or any Person in
connection with the use or operation of the Leased Property including the Lessee’s activities
thereon or therein;

          provided, however, that the Lessee shall not be required to indemnify any Indemnitee
under this Section for any Claim, but only to the extent that such Claim results solely from the
willful misconduct or gross negligence of such Indemnitee. It is expressly understood and agreed
that the indemnity provided for herein shall survive the expiration or termination of and shall be
separate and independent from any remedy under the Lease or any other Operative Document.

     SECTION 7.2 Environmental Indemnity. Without limiting the provisions of Section 7.1,
the Lessee agrees, to indemnify, hold harmless and defend each Indemnitee on an After-Tax Basis
from and against any and all Claims (including third party Claims for personal injury or real or
personal property damage), losses (including any loss of value of the Leased Property), damages,
liabilities (including liabilities arising under a theory of strict liability), fines, penalties,
charges, administrative and judicial proceedings (including informal proceedings) and orders,
judgments, remedial action, requirements, enforcement actions of any kind, and all costs and
expenses incurred in connection therewith (including all attorneys’ and/or paralegals’ fees and
expenses), and including all costs incurred in connection with any investigation or monitoring of
site conditions or any clean-up, remedial, removal or restoration work by any Governmental
Authority (except, in each of the foregoing cases, for any portion of an indemnifiable claim

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directly attributable to the gross negligence or willful misconduct of any Indemnitee),
arising directly or indirectly, in whole or in part, out of:

          (a) the presence in, on or under the Leased Property or any part thereof of any Hazardous
Materials, or any releases or discharges of any Hazardous Materials on, under, from or onto the
Leased Property or any part thereof;

          (b) any activity, including, without limitation, construction, carried on or undertaken on or
off the Leased Property or any part thereof, and whether by the Lessee or by any of its Affiliates,
or any predecessor in title or any employees, agents, contractors or subcontractors of the Lessee
or by any of its Affiliates or any predecessor in title, or any other Persons (including such
Indemnitee), in connection with the handling, treatment, removal, storage, decontamination,
clean-up, transport or disposal of any Hazardous Materials that at any time are located or present
on or under or that at any time migrate, flow, percolate, diffuse or in any way move onto or under
the Leased Property or any part thereof;

          (c) loss of or damage to any property or the environment (including clean-up costs, response
costs, remediation and removal costs, cost of corrective action, costs of financial assurance,
fines and penalties and natural resource damages), or death or injury to any Person, and all
expenses associated with the protection of wildlife, aquatic species, vegetation, flora and fauna,
and any mitigative action required by or under Environmental Laws;

          (d) any claim concerning lack of compliance with Environmental Laws, or any act or omission
causing an environmental condition that requires remediation or would allow any Governmental
Authority to record a Lien or encumbrance on the land records; or

          (e) any residual contamination on or under the Leased Property or any part thereof, or
affecting any natural resources, and any contamination of any property or natural resources arising
in connection with the generation, use, handling, storage, transport or disposal of any such
Hazardous Materials, and irrespective of whether any of such activities were or will be undertaken
in accordance with applicable laws, regulations, codes and ordinances, in any case arising or
occurring (y) prior to or during the Lease Term or (z) at any time during which the Lessee or any
of its Affiliates owns any interest in, including a leasehold interest, or otherwise occupies or
possesses the Leased Property or any portion thereof. It is expressly understood and agreed that
the indemnity provided for herein shall survive the expiration or termination of and shall be
separate and independent from any remedy under the Lease or any other Operative Document. The
Lessee, for itself and its Affiliates and its and their successors and assigns, hereby releases and
waives any future claims against the Lessor for indemnity or contribution in the event the Lessee
becomes liable for cleanup or other costs related to the Leased Property, including under any
applicable laws, rules, regulations or court orders. The Lessee or any of its Affiliates
acknowledges and agrees that Lessor shall in no respect be considered to be a receiver of the
Leased Property.

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     SECTION 7.3 Proceedings in Respect of Claims. The obligations and liabilities of the
Lessee (the “Indemnitor”), with respect to any Claims for which, if valid, the Indemnitor
is obligated to provide indemnification pursuant to the provisions of Section 7.1 and Section 7.2
(“Indemnified Claims”), shall be subject to the following terms and conditions:

          (a) Whenever an Indemnitee (for purposes of this Section 7.3, the word “Indemnitee”
shall be deemed to include members of the Indemnitee Group) shall have received notice that an
Indemnified Claim has been asserted or threatened against such Indemnitee, the Indemnitee shall
promptly notify the Indemnitor of such Claim, together with supporting facts and data within the
possession or knowledge of the Indemnitee related thereto, provided that the failure to deliver
such notice shall not relieve the Indemnitor of its indemnification obligations hereunder except to
the extent that such failure materially prejudices the Indemnitor’s defense of that Claim. With
respect to any amount that the Indemnitor is requested by an Indemnitee to pay by reason of
Section 7.1 or 7.2, such Indemnitee shall, if so requested by the Indemnitor, and
prior to any payment, submit such additional information to the Indemnitor as the Indemnitor may
reasonably request and which is in the possession of such Indemnitee to substantiate properly the
requested payment.

          (b) Indemnitor shall have the right to defend, at its expense, such Indemnified Claim with
counsel of its choice reasonably satisfactory to the Indemnitee, provided, however,
that the Indemnitor shall have no such right (i) unless the Indemnitor shall deliver to the
relevant Indemnitee a written acknowledgment of the Indemnitor’s obligation to indemnify such
Indemnitee with respect to such Claim; (ii) if any Default or Event of Default shall have occurred
and be continuing; (iii) if such Claim involves a possible imposition of any criminal liability or
penalty or civil penalty on such Indemnitee; or (iv) if such proceedings will involve a material
risk of the sale, forfeiture or loss of, or the creation of any Lien on the Leased Property or any
part thereof unless the Indemnitor shall have provided security for the Indemnitor’s obligations
under this Section with respect to such Claim reasonably satisfactory to the relevant Indemnitee
with respect to such risk. The Indemnitee shall promptly notify the Indemnitor of any compromise
or settlement proposal with respect to any such Claim and shall not unreasonably refuse to accept
any such proposal if the same is acceptable to the Indemnitor. The Indemnitee may participate in a
reasonable manner at its own expense and with its own counsel in any proceeding conducted by the
Indemnitor in accordance with the foregoing. The Indemnitor shall not enter into any settlement or
other compromise with respect to any Claim which is entitled to be indemnified under Section
7.1 or 7.2 without the prior written consent of the Lessor acting individually and on
behalf of the affected Indemnitee. The Indemnitor, and each Indemnitee (at the expense of the
Indemnitor) are and shall be bound to cooperate with each other in good faith in connection with
the defense of any such action, suit or proceeding in providing any information and bear witness or
give testimony which may be requested by counsel for any of such parties.

          (c) Upon payment in full of any Claim by the Indemnitor pursuant to Section 7.1 or
7.2 to or on behalf of an Indemnitee, the Indemnitor without any further action (but only
to the extent permitted by Applicable Law and contractual agreements), shall be subrogated to any
and all claims that such Indemnitee may have relating thereto (other than claims in respect of
insurance policies maintained by such Indemnitee at its own expense) (subject to the provisions of
this Section 7 and Section 8.6 of the Lease), and such Indemnitee shall execute
such instruments of assignment and conveyance, evidence of claims and payment and such other
documents,

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instruments and agreements as may be necessary to preserve any such Claims and otherwise
cooperate with the Indemnitor and give such further assurances as are necessary or advisable to
enable the Indemnitor vigorously to pursue such Claims.

          (d) Any amount payable to an Indemnitee pursuant to Section 7.1 or 7.2 shall
be paid to such Indemnitee promptly upon receipt of a written demand therefor from such Indemnitee.

          (e) If the Indemnitor fails to assume the defense of an Indemnified Claim within a reasonable
time after receipt of written notice thereof from the Indemnitee, the Indemnitee will (upon
delivering written notice to such effect to the Indemnitor) have the right to undertake, at the
Indemnitor’s cost and expense, the defense, compromise or settlement of such Claim on behalf of and
for the account and risk of the Indemnitor, subject to the right of the Indemnitor to assume and
control the defense of such Claim at any time prior to the settlement, compromise or final
determination thereof, provided, however, that the Indemnitor shall have no such
right (i) unless the Indemnitor shall deliver to the relevant Indemnitee a written acknowledgment
of the Indemnitor’s obligation to indemnify such Indemnitee with respect to such Claim, (ii) if any
Default or Event of Default shall have occurred and be continuing; (iii) if such Claim involves a
possible imposition of any criminal liability or penalty or civil penalty on such Indemnitee; or
(iv) if such proceedings will involve a material risk of the sale, forfeiture or loss of, or the
creation of any Lien on the Leased Property or any part thereof unless the Indemnitor shall have
provided security for the Indemnitor’s obligations under this Section with respect to such Claim
reasonably satisfactory to the relevant Indemnitee with respect to such risk. In the event the
Indemnitee assumes the defense of any such Claim, the Indemnitee will reasonably cooperate with the
Indemnitor in keeping the Indemnitor reasonably informed of the progress of any such defense,
compromise or settlement.

     SECTION 7.4 General Tax Indemnity.

          (a) The Lessee shall pay on an After-Tax Basis, and on written demand shall indemnify and hold
each Tax Indemnitee harmless from and against, any and all fees (including, without limitation,
documentation, recording, license and registration fees), taxes (including, without limitation,
income, gross receipts, franchise (including taxes based upon or measured by capital or net worth)
sales, rental, use, turnover, value-added, property, excise and stamp taxes and all recapture and
other payments in connection with any agreement relating to tax abatements granted in connection
with the Leased Property), levies, imposts, duties, charges, assessments or withholdings of any
nature whatsoever, together with any penalties, fines or interest thereon or additions thereto (any
of the foregoing being referred to herein as “Taxes” and individually as a “Tax”)
(for the purposes of this Section, the definition of “Taxes” excludes amounts imposed on, incurred
by, or asserted against each Tax Indemnitee as the result of any prohibited transaction, within the
meaning of Section 406 or 407 of ERISA or Section 4975(c) of the Code, arising out of the
transactions contemplated hereby or by any other Operative Document, as well as any penalties, fees
or interest on, or additions to taxes, caused solely by the failure of any of the Tax Indemnitees
to provide notice to the Lessee of the Lessee’s indemnity obligations hereunder) imposed on or with
respect to any Tax Indemnitee, the Lessee, the Leased Property or any portion thereof or the Land,
or any Lessee or user thereof, by the United States or by any state, local or foreign government or
other taxing authority in connection with or in any way relating to

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(i) the acquisition, financing, mortgaging, construction, preparation, installation,
inspection, delivery, non-delivery, acceptance, rejection, purchase, ownership, possession, rental,
lease, sublease, maintenance, repair, storage, transfer of title, redelivery, use, operation,
condition, sale, condemnation, casualty, return or other application or disposition of all or any
part of the Leased Property or the imposition of any Lien, other than a Lessor Lien (or incurrence
of any liability to refund or pay over any amount as a result of any Lien, other than a Lessor
Lien) thereon, (ii) Basic Rent or Supplemental Rent or the receipts or earnings arising from or
received with respect to the Leased Property or any part thereof, or any interest therein or any
applications or dispositions thereof, (iii) the Leased Property, the Land or any part thereof or
any interest therein, (iv) all or any of the Operative Documents, any other documents contemplated
thereby and any amendments and supplements thereto and (v) otherwise with respect to or in
connection with the transactions contemplated by the Operative Documents.

          (b) Section 7.4(a) shall not apply to:

          (i) Taxes on, based on, or measured by or with respect to, solely the net income of a
Tax Indemnitee (including, without limitation, minimum Taxes, capital gains Taxes, Taxes on
or measured by items of tax preference or alternative minimum Taxes) other than (A)
any such Taxes that are, or are in the nature of, sales, use, license, rental, ad valorem or
property Taxes, (B) withholding Taxes imposed by the United States or any state, local or
foreign taxing authority on Rent or payments on or with respect to any other amounts payable
by Lessee to Lessor under the Operative Documents, (C) any such Taxes to the extent that
such tax would not have been imposed if on the Closing Date the Lessor had advanced funds to
the Lessee in the form of a loan secured by the Leased Property in an amount equal to the
Lease Balance, with Rent for such loan equal to the Basic Rent payable on each Rent Payment
Date and a principal balance at the maturity of such loan in an amount equal to the Lease
Balance at the end of the Lease Term, provided that nothing in this clause (i) shall be
interpreted to prevent any payment from being made on an After-Tax Basis if otherwise
required to be so made;

          (ii) Taxes on, based on, or in the nature of or measured by Taxes solely on: doing
business, business privilege, capital, capital stock, net worth, or mercantile license or
similar taxes other than (A) any such Taxes imposed on such Tax Indemnitee by any
state or locality, net of any decrease in such taxes realized by such Tax Indemnitee, to the
extent that such tax would not have been imposed if on the Closing Date the Lessor had
advanced funds to the Lessee in the form of a loan secured by the Leased Property in an
amount equal to the Lease Balance, with Rent for such loan equal to the Basic Rent
attributable to the Lease Balance payable on each Rent Payment Date and a principal balance
at the maturity of such loan in an amount equal to the Lease Balance at the end of the Lease
Term or (B) any Taxes that are or are in the nature of sales, use, rental, license or
property Taxes;

          (iii) Taxes that result from any act, event or omission, or are attributable to any
period of time, that occurs after the discharge in full of the Lessee’s obligations to pay
the Lease Balance, or any amount determined by reference thereto, and all other amounts due
under the Operative Documents, unless such Taxes relate to acts, events or matters occurring
prior to the earliest of such times or are imposed on or with

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respect to any payments due under the Operative Documents after such expiration or
discharge;

          (iv) Taxes imposed on a Tax Indemnitee that result from any voluntary sale, assignment,
transfer or other disposition (other than any such sale, assignment, transfer or other
disposition made at the request of the Lessee) by such Tax Indemnitee of any interest in the
Leased Property or any part thereof, or any interest therein or any interest or obligation
arising under the Operative Documents or from any sale, assignment, transfer or other
disposition of any interest in such Tax Indemnitee or any related Tax Indemnitee, it being
understood that each of the following shall not be considered a voluntary sale: (A) any
substitution, replacement or removal of any of the property by the Lessee shall not be
treated as a voluntary action of any Tax Indemnitee, (B) any sale or transfer resulting from
the exercise by the Lessee of any termination option, any purchase option or sale option,
(C) any sale or transfer while a Default or an Event of Default shall have occurred and be
continuing under the Lease and (D) any sale or transfer resulting from the Lessor’s exercise
of remedies under the Lease;

          (v) any Tax which is being contested in accordance with the provisions of Section
7.4(c), during the pendency of such contest, provided that payment of such Tax is not
required during the pendency of such contest;

          (vi) any Tax that is imposed on a Tax Indemnitee solely as a result of such Tax
Indemnitee’s gross negligence or willful misconduct;

          (vii) any Tax that results from a Tax Indemnitee engaging, with respect to the Leased
Property, in transactions prohibited by the Operative Documents; or

          (viii) any interest, penalties or additions to tax to the extent resulting in whole or
in part from the failure of a Tax Indemnitee to file a return or pay any Tax that it is
required to file or pay in a proper and timely manner, unless such failure (A) results from
the transactions contemplated by the Operative Documents in circumstances where the Lessee
did not give timely notice to the Tax Indemnitee of such filing requirement that would have
permitted a proper and timely filing of such return or (B) results from the failure of the
Lessee to supply information necessary for the proper and timely filing of such return that
was not in the possession of the Lessor at least twenty (20) Business Days before due or
notifying the Tax Indemnitee that it is necessary to file a report, return or statement at
least twenty (20) Business Days before the due date for filing.

          (c) If any Claim shall be made against any Tax Indemnitee or if any proceeding shall be
commenced against any Tax Indemnitee (including a written notice of such proceeding) for any Taxes
as to which the Lessee may have an indemnity obligation pursuant to this Section, or if any Tax
Indemnitee shall determine that any Taxes as to which the Lessee may have an indemnity obligation
pursuant to this Section may be payable, such Tax Indemnitee shall promptly notify the Lessee in
writing, provided that the failure to deliver such notice shall not relieve the Lessee of
its indemnification obligations hereunder. The Lessee shall not be responsible for the costs,
interest, penalties or additions to taxes in the nature of penalties suffered

24

 

as a result of the failure of any of the Tax Indemnitees to notify the Lessee. The Lessee
shall be entitled, at its expense, to participate in and to the extent that the Lessee desires to,
assume and control the defense thereof; provided, however, that the Lessee shall not be entitled to
assume and control the defense of any such action, suit or proceeding (but the Tax Indemnitee shall
then contest any such action, suit or proceeding, at the sole cost and expense of the Lessee, on
behalf of the Lessee) if and to the extent that (A) a Default or an Event of Default has occurred
and is continuing, (B) such action, suit or proceeding involves matters which are unrelated to the
transactions contemplated by the Operative Documents and if determined adversely could be
materially detrimental to the interests of such Tax Indemnitee notwithstanding indemnification by
the Lessee, (C) such action, suit or proceeding involves the federal or any state income tax
liability of the Tax Indemnitee, (D) the Lessee fails to deliver to the Tax Indemnitee a written
acknowledgement of the Lessee’s obligation to fully indemnify the Tax Indemnitee with respect to
such action, suit or proceeding, or (E) if in the reasonable opinion of such Tax Indemnitee (i)
such action, suit or proceeding involves a possible imposition of criminal liability or penalty or
civil penalty on such Tax Indemnitee, or (ii) if such proceeding will involve a material risk of
the sale, forfeiture or loss of, or the creation of any Lien on the Leased Property or any part
thereof unless the Lessee shall have provided security for Lessee’s obligations under this Section
with respect to such action, suit or proceeding reasonably satisfactory to the Tax Indemnitee with
respect to such risk. If Lessee assumes and controls the defense of the proceeding, the Tax
Indemnitee may participate in a reasonable manner at its own expense and with its own counsel in
any proceeding conducted by the Lessee in accordance with the foregoing. Each Tax Indemnitee shall
at the Lessee’s expense supply the Lessee with such information and documents reasonably requested
by the Lessee as are necessary or advisable for the Lessee to participate in any action, suit or
proceeding to the extent permitted by this Section. Unless a Default or an Event of Default shall
have occurred and be continuing, no Tax Indemnitee shall enter into any settlement or other
compromise with respect to any Claim which is entitled to be indemnified under this Section without
the prior written consent of the Lessee, which consent shall not be unreasonably withheld or
delayed, unless such Tax Indemnitee waives its right to be indemnified under this Section with
respect to such Claim. Notwithstanding anything contained herein to the contrary, (i) a Tax
Indemnitee will not be required to contest (and the Lessee shall not be permitted to contest) a
Claim with respect to the imposition of any Tax if such Tax Indemnitee shall waive its right to
indemnification under this Section with respect to such Claim (and any related Claim with respect
to other taxable years the contest of which is precluded as a result of such waiver) and (ii) no
Tax Indemnitee shall be required to contest any Claim if the subject matter thereof shall be of a
continuing nature and shall have previously been decided adversely, unless there has been a change
in law which in the opinion of the Lessee’s counsel creates substantial authority for the success
of such contest. Each Tax Indemnitee and the Lessee shall consult in good faith with each other
regarding the conduct of such contest controlled by either. Lessee shall not settle any claims
without the consent of the Tax Indemnitee, which consent shall not be unreasonably withheld.

          (d) If (i) a Tax Indemnitee shall obtain a credit or refund of any Taxes paid by the Lessee
pursuant to this Section or (ii) by reason of the incurrence or imposition of any Tax for which a
Tax Indemnitee is indemnified hereunder or any payment made to or for the account of such Tax
Indemnitee by the Lessee pursuant to this Section, such Tax Indemnitee at any time realizes a
reduction in any Taxes for which the Lessee is not required to indemnify such Tax Indemnitee
pursuant to this Section, which reduction in Taxes was not taken into account in

25

 

computing such payment by the Lessee to or for the account of such Tax Indemnitee, then such
Tax Indemnitee shall promptly pay to the Lessee the amount of such credit or refund, together with
the amount of any interest received by such Tax Indemnitee on account of such credit or refund or
an amount equal to such reduction in Taxes, as the case may be; provided, however,
that no such payment shall be made so long as a Default or an Event of Default shall have occurred
and be continuing; and provided, further, that the amount payable to the Lessee by
any Tax Indemnitee pursuant to this subsection shall not at any time exceed the aggregate amount of
all indemnity payments made by the Lessee under this Section to such Tax Indemnitee and all related
Tax Indemnitees with respect to the Taxes which gave rise to a credit or refund or with respect to
the Tax which gave rise to a reduction in Taxes less the amount of all prior payments made to the
Lessee by such Tax Indemnitee and related Tax Indemnitees under this Section. The disallowance or
reduction of any credit, refund or other tax savings with respect to which a Tax Indemnitee has
made a payment to the Lessee under this subsection shall be treated as a Tax for which the Lessee
is obligated to indemnify such Tax Indemnitee hereunder.

          (e) Any Tax indemnifiable under this Section shall be paid directly to the applicable taxing
authority prior to delinquency if direct payment is practicable and permitted. If direct payment
to the applicable taxing authority is not permitted or is otherwise not made, any amount payable to
a Tax Indemnitee pursuant to this Section shall be paid within thirty (30) days after receipt of a
written demand therefor from such Tax Indemnitee accompanied by a written statement describing in
reasonable detail the amount so payable. Any payments made pursuant to this Section shall be made
directly to the Tax Indemnitee entitled thereto or the Lessee in immediately available funds at
such bank or to such account as specified by the payee in written directions to the payor, or, if
no such direction shall have been given, by check of the payor payable to the order of the payee by
certified mail, postage prepaid at its Address as set forth in this Agreement. Upon the request of
any Tax Indemnitee with respect to a Tax that the Lessee is required to pay, the Lessee shall
furnish to such Tax Indemnitee the original or a certified copy of a receipt for the Lessee’s
payment of such Tax or such other evidence of payment as is reasonably acceptable to such Tax
Indemnitee.

          (f) If the Lessee knows of any report, return or statement required to be filed with respect
to any Taxes that are subject to indemnification under this Section, the Lessee shall, if the
Lessee is permitted by Applicable Law, timely file such report, return or statement (and, to the
extent permitted by law, show ownership of the Leased Property in the Lessee); provided,
however, that if the Lessee is not permitted by Applicable Law or does not have access to
the information required to file any such report, return or statement, the Lessee will promptly so
notify the appropriate Tax Indemnitee at least thirty (30) days before due or notify the Tax
Indemnitee that it is necessary to file a report, return or statement at least thirty (30) days
before the due date for filing, in which case Tax Indemnitee will timely file such report, return
or statement. In any case in which the Tax Indemnitee will file any such report, return or
statement, Lessee shall, upon written request of such Tax Indemnitee, provide such Tax Indemnitee
with such information as is reasonably available or accessible to the Lessee. In any case in which
the Lessee will file any such report, return or statement, each Tax Indemnitee shall, upon written
request of the Lessee, provide the Lessee with such information as is reasonably requested and
reasonably available to the Tax Indemnitee.

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          (g) It is expressly understood and agreed that the indemnity provided for herein shall survive
the expiration or termination of and shall be separate and independent from any remedy under the
Lease or any other Operative Document.

     SECTION 7.5 Exculpation. Neither the Lessor nor any of its Affiliates has and shall
have any liability or obligation whatsoever or howsoever in connection with the design,
construction, completion or management of the Improvements and/or any Alterations and in no event
shall the Lessor or any of its Affiliates be obligated to inspect the Improvements and/or any
Alterations or all or any part of the Leased Property. Under no circumstances whatsoever shall the
Lessor or any of its Affiliates be or become liable for the performance or default of any
contractor or subcontractor, or for any failure to construct, complete, protect or insure the
Improvements and/or any Alterations, or any part thereof, or for the payment of any cost or expense
incurred in connection therewith, or for the performance or non-performance of any obligation of
the Lessee to the Lessor or to any other Person, firm or entity without limitation. Nothing,
including without limitation, any funding by the Lessor of the Lease Balance or acceptance of any
document or instrument, shall be construed as a representation or warranty, express or implied, on
the part of the Lessor or any of its Affiliates. Further, the Lessee shall be solely responsible
for all aspects of the Lessee’s business and conduct in connection with the construction and
completion of all Improvements and/or any Alterations.

     Neither the Lessor nor any of its Affiliates shall have any obligation to supervise, inspect
or inform the Lessee or any third party of any aspect of the work or construction of the
Improvements and/or any Alterations or any other matter referred to above. Any inspection or
review made by or on behalf of the Lessor shall be made for the purpose of determining whether or
not the obligations of the Lessee under the Operative Documents are being properly discharged, and
neither the Lessee, nor any third party shall be entitled to rely upon any such inspection or
review.

     Neither the Lessor nor any of its Affiliates owes any duty of care to the Lessee or any other
Person to protect against or inform the Lessee or any other Person of the existence of negligent,
faulty, inadequate or defective design or construction of the Improvements or any other aspect of
the Leased Property.

     SECTION 7.6 Role of Lessor. Any term or condition hereof or of any of the other
Operative Documents to the contrary notwithstanding, the Lessor shall not have, and by its
execution and acceptance of this Agreement, hereby expressly disclaims, any obligation or
responsibility for the design, construction, installation, testing, management, conduct or
operation of the Improvements or all or any part of the Leased Property or business and affairs of
the Lessee, and any term or condition hereof, or of any of the other Operative Documents,
permitting the Lessor to disburse funds, or to take or refrain from taking any action with respect
to the Lessee or the Leased Property shall be deemed to be solely for the benefit of the Lessor and
may not be relied upon by any other Person. Further, the Lessor shall not have, have not assumed
and by its execution and acceptance of this Agreement hereby expressly disclaims, any liability or
responsibility for the payment or performance of any indebtedness or obligation of the Lessee, and
no term or condition hereof, or of any of the other Operative Documents, shall be construed
otherwise.

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     SECTION 7.7 Lessor’s Benefit. All conditions precedent to the Lessor’s acquisition
of the Leased Property and funding of the Lease Balance or taking of any other action under the
Operative Documents are imposed hereby solely for the benefit of the Lessor. No party other than
the Lessor may require satisfaction of any such condition precedent. Any requirement of this
Agreement and any requirement of any other Operative Document may be waived by the Lessor, in whole
or in part, at any time. Any requirement herein or in any other Operative Document of submission
of evidence to the Lessor of the existence or non-existence of a fact shall be deemed, also, to be
a requirement that the fact shall exist or not exist, as the case may be, and without waiving any
condition or obligation of the Lessee, the Lessor may at all times independently establish to its
satisfaction such existence or non-existence.

SECTION 8

MISCELLANEOUS

     SECTION 8.1 Survival of Agreements. The indemnities of the parties provided for in
Section 7 of this Agreement and in the other Operative Documents, and all provisions for
the payment or reimbursement by the Lessee of expenses hereunder and in the other Operative
Documents, shall survive the termination or expiration of this Agreement and any of the other
Operative Documents (including, without limitation, the termination of the Lease pursuant to
Section 15.7 thereof), any disposition of any interest of the Lessor in the Leased Property
and shall be and continue in effect notwithstanding any investigation made by any party hereto or
to any of the other Operative Documents and the fact that any such party may waive compliance with
any of the other terms, provisions or conditions of any of the Operative Documents.

     SECTION 8.2 Notices. Unless otherwise specified herein or in an applicable Operative
Document, it shall, for purposes of this Agreement and the other Operative Documents, be sufficient
service or giving of any notice, request, complaint, demand, instruction or other instrument or
document to any Person, if it is in writing and sent to the Address set forth below. Any notice
given by facsimile transmission shall be deemed given when sent provided confirmed by a nationally
recognized overnight carrier service. Any notice given by mail shall be sent by registered or
certified mail, return receipt requested and shall be deemed to have been given when so sent. The
parties hereto may designate, by notice given to each of the other parties, any further or
different addresses than those set forth below to which subsequent notices shall be sent. For
purposes of the Operative Documents (but subject to the preceding sentence), the address of the
Lessee and the Lessor is as follows:

	 	 	 	 	 
	(i)
	 	Lessee:
	 	NAP of the Capital Region, LLC

	 	 	 	 	c/o Terremark Worldwide, Inc.

	 	 	 	 	2601 South Bayshore Drive, Suite 900

	 	 	 	 	Miami, Florida 33133

	 	 	 	 	Attention: Chief Financial Officer

	 	 	 	 	Facsimile: (305) 856-8190

	 	 	 	 	Telephone: (305) 860-7817

28

 

	 	 	 	 	 
	(ii)
	 	Lessor:
	 	Culpeper Lessor 2007-1 LLC

	 	 	 	 	c/o Credit Suisse

	 	 	 	 	Eleven Madison Avenue

	 	 	 	 	New York, New York 10010-3643

	 	 	 	 	Attention: Gregory Strzelichowski

	 	 	 	 	Attention: Larcy Naval

	 	 	 	 	Attention: Shane M. Hadden

	 	 	 	 	Facsimile: (212) 325-6666

	 	 	 	 	Telephone: (212) 325-2000

	 
	 	 	 	 

	(iii)
	 	Guarantor:
	 	Terremark Worldwide, Inc.

	 	 	 	 	2601 South Bayshore Drive, Suite 900

	 	 	 	 	Miami, Florida 33133

	 	 	 	 	Attention: Chief Financial Officer

	 	 	 	 	Facsimile: (305) 856-8190

	 	 	 	 	Telephone: (305) 860-7817

	 
	 	 	 	 

	(iv)
	 	With copy to:
	 	Greenberg Traurig, LLP

	 	 	 	 	1900 University Ave., 5th Floor

	 	 	 	 	East Palo Alto, California 94303

	 	 	 	 	Attention: Toni P. Wise

	 	 	 	 	Facsimile: (650) 462-7887

	 	 	 	 	Telephone: (650) 289-7887

     SECTION 8.3 Counterparts. This Agreement may be executed in any number of
counterparts as may be convenient or necessary, and it shall not be necessary that the signatures
of all parties hereto or thereto be contained on any one counterpart hereof or thereof.
Additionally, the parties hereto agree that for purposes of facilitating the execution of this
Agreement, (a) the signature pages taken from the separate individually executed counterparts of
this Agreement may be combined to form multiple fully executed counterparts and (b) a facsimile
transmission shall be deemed to be an original signature for all purposes. All executed
counterparts of this Agreement shall be deemed to be originals, but all such counterparts taken
together or collectively, as the case may be, shall constitute one and the same agreement.

     SECTION 8.4 Amendments. No Operative Document nor any of the terms thereof may be
terminated, amended, supplemented, waived or modified with respect to any party thereto except with
the prior written consent of such party thereto. If and to the extent that this Agreement, the
Lease or any other Operating Document constitutes an amendment, supplement, termination, waiver or
other modification to any Operative Document, each of the parties hereto, by its execution of this
Agreement, shall be deemed to have given its written consent to such amendment supplement,
termination, waiver or other modification.

     SECTION 8.5 Headings, etc. The Table of Contents and headings of the various
Sections of this Agreement are for convenience of reference only and shall not modify, define,
expand or limit any of the terms or provisions hereof.

29

 

     SECTION 8.6 Parties in Interest. Except as expressly provided herein, none of the
provisions of this Participation Agreement is intended for the benefit of any Person except the
parties hereto, their successors and their permitted assigns.

     SECTION 8.7 Governing Law. This Participation Agreement shall in all respects be
governed by the internal law of the State of New York as to all matters of construction, validity
and performance, without regard to conflicts of law principles to the extent permitted by
Applicable Law, except Title 14 of Article 5 of the New York General Obligations Law, except as to
matters relating to the creation of liens and the exercise of remedies with respect to the leased
Property, which shall be governed by and construed in accordance with the laws of the state in
which such Leased Property is located.

     SECTION 8.8 Liability of Lessor Limited. Recourse to the Lessor under this Agreement
shall be limited as provided in Section 18.12 of the Lease.

     SECTION 8.9 Expenses.

          (a) Expenses of Lessor. The fees, expenses and disbursements (including counsel fees
and the Standby Fee) of the Lessor in connection with the Operative Documents (including all costs
associated with the release and termination of the Operative Documents in accordance with the terms
thereof) shall be paid by the Lessee as Supplemental Rent as and when provided in this Agreement
and the other Operative Documents or upon demand therefor by the Lessor.

          (b) Amendments and Supplements. The Lessee agrees to pay all out-of-pocket costs and
expenses of the Lessor in connection with any proposed or successful amendment or supplementing any
of the Operative Documents and the documents and instruments referred to therein (including,
without limitation, the fees and disbursements of counsel for the Lessor).

     SECTION 8.10 Severability. Any provision of this Agreement that 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.

     SECTION 8.11 Submission to Jurisdiction; Waivers. Each party hereto irrevocably
and unconditionally:

          (a) submits for itself and its property in any legal action or proceeding
relating to this Participation Agreement or any other Operative Document, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
United States District Court for the Southern District of New York and of any New York state court
sitting in the borough of Manhattan, and appellate courts from any thereof; and

30

 

          (b) consents that any such action or proceedings may be brought to such courts,
and waives any objection that it may now or hereafter have the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same.

     Each party, to the extent permitted by law, hereby voluntarily,
knowingly, irrevocably and unconditionally waives any right to have a jury participate in resolving
any dispute, whether sounding in contract, tort, or otherwise, among or between the parties hereto
arising out of, in connection with, related to, or incidental to the relationship established among
the parties in connection with this Agreement, any other Operative Document or any other document
executed or delivered in connection herewith or the transactions related hereto. This waiver shall
not in any way affect, waive, limit, amend or modify the ability of the Lessor to pursue any
remedies contained in this Agreement, the other Operative Documents or any other agreement or
document related hereto. This provision is a material inducement to the Lessor to enter into this
Agreement and the other Operative Documents.

     SECTION 8.12 Limitation on Interest. Any provision to the contrary contained in this
Agreement or in any of the other Operative Documents notwithstanding, it is expressly provided that
in no case or event shall the aggregate of (i) all interest payable by the Lessee and (ii) the
aggregate of any other amounts accrued or paid pursuant to this Agreement or any of the other
Operative Documents, which under applicable laws are or may be deemed to constitute interest, ever
exceed the maximum rate of interest which could lawfully be contracted for, charged or received. In
this connection, it is expressly stipulated and agreed that it is the intent of the Lessee and the
Lessor to contract in strict compliance with the applicable usury laws of the State of New York and
of the United States (whichever permit the higher rate of interest) from time to time in effect.
In furtherance thereof, none of the terms of this Agreement or any of the other Operative Documents
shall ever be construed to create a contract to pay, as consideration for the use, forbearance or
detention of money, interest at a rate in excess of the maximum contract interest rate permitted to
be contracted for, charged or received by the applicable laws of the United States or the State of
New York (whichever permit the higher rate of interest). The Lessee and the other parties now or
hereafter becoming liable for payment of any indebtedness under this Agreement or any other
Operative Documents shall never be liable for interest in excess of the maximum rate that may be
lawfully contracted for or charged under the laws of the State of New York and of the United States
(whichever permit the higher rate of interest). If under any circumstances the aggregate amounts
paid include amounts which by law are deemed interest which would exceed the maximum amount of
interest which could lawfully have been contracted for, charged or received, the parties stipulate
that such amounts will be deemed to have been paid as a result of an error on the part of the
parties, and the party receiving such excess payment shall promptly, upon discovery of such error
or upon notice thereof from the party making such payment, refund the amount of such excess or at
the option of the Lessor, credit such excess against any unpaid principal balance owing. To the
maximum extent permitted by applicable law, all amounts contracted for, charged or received for the
use, forbearance, or detention of money shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of the Lease. The provisions of
this Section 8.12 shall control all of the Operative Documents.

31

 

     SECTION 8.13 Reproduction of Documents. The parties hereto agree and stipulate that,
to the extent permitted by applicable law, any reproduction of this Agreement or other Operative
Documents shall be admissible in evidence as the original itself in any judicial or administrative
proceeding (whether or not the original is in existence and whether or not such reproduction was
made in the regular course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence. This Section 8.13 shall not
prohibit the Lessor from contesting any such reproduction to the same extent that it could contest
the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

     SECTION 8.14 Payment of Expenses. Whether or not the transactions contemplated by
this Agreement shall be consummated, the Lessee and the Guarantor shall:

          (a) Fees and Expenses. Pay or cause to be paid (i) all fees and expenses incurred by
the Lessor in connection with the transactions described in this Agreement and the other Operative
Documents, (ii) all fees and expenses incurred by any of the Lessor in connection with any
refinancing, modification, supplement or amendment (or, if related to a request made by the Lessee,
interpretation) of this Agreement or any of the Operative Documents or any waiver or consent under
or in respect of this Agreement or any of the Operative Documents, whether or not such refinancing,
modification, supplement, amendment, waiver or consent is obtained or becomes effective, and in
connection with the consideration of any potential, actual or proposed restructuring or workout of
the transactions contemplated hereby or by the Operative Documents, (iii) all fees and expenses
incurred by any of the Lessor in connection with the consummation of the Overall Transaction,
including without limitation, in each instance set forth in clauses (i), (ii) and (iii), any and
all document production, duplication charges, printing, word processing and reproduction expenses,
legal and surveyor’s fees (including the legal fees and expenses of local counsel and counsel to
the Lessor), and (iv) other fees and expenses of the Lessor, as beneficiary or mortgagee, as
applicable, under applicable title insurance policies, fees and expenses of any appraisers and
environmental engineers and consultants, and all recording, registration and filing fees, taxes and
expenses.

          (b) Out-of-Pocket Expenses. Reimburse or cause to be reimbursed each of the
Indemnitees for its or their reasonable out-of-pocket expenses (other than income taxes) in
connection with (i) the transactions contemplated hereunder and under the Operative Documents, and
(ii) any modification, supplement or amendment of any of the Operative Documents or any waiver or
consent under or in respect of any of the Operative Documents and in connection with the
consideration of any potential, actual or proposed restructuring or workout of the transactions
contemplated hereby or by the Operative Documents, and pay or cause to be paid all reasonable
costs, expenses, taxes and fees incurred by the Lessor, in enforcing this Agreement or any
Operative Document, including reasonable attorneys’ fees and disbursements, in connection with any
Default or Event of Default thereunder or hereunder, or in responding to any subpoena or other
legal process or informal investigate demand issued in connection with this Agreement or any of the
Operative Documents, or the transactions contemplated hereby or thereby.

          (c) Stamp Taxes. Pay or cause to be paid, and save each of the Indemnitees (and each
nominee of, payee designated by or successor or assignee of the Lessor harmless from and against
any and all liability and loss with respect to or resulting from the nonpayment or

32

 

delayed payment of any and all stamp and other similar taxes, fees and excises, if any,
including any interest and penalties, which may be, or be determined to be, payable in connection
with the transactions contemplated by this Agreement, or in connection with any modification,
supplement or amendment of this Agreement or any of the Operative Documents or any waiver or
consent under or in respect of this Agreement or any of the Operative Documents.

          (d) Brokerage Fees. Hold each of the Indemnitees harmless from and against any and
all finders’ or brokerage fees and commissions which may be payable in connection with such
transactions or in connection with any modification, supplement or amendment of this Agreement or
any of the other Operative Documents or any waiver or consent under or in respect of this Agreement
or any of the other Operative Documents.

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

[SIGNATURE PAGE ATTACHED]

33

 

LESSOR:

CULPEPER LESSOR 2007-1 LLC

a Delaware limited liability company

By: Credit Suisse Management LLC,

Its: Sole Member

	 	 	 	 	 
	 	 	 
	 	By:  	                                     /s/ Damien Dwin
 	 
	 	 	Name:  	Damien Dwin 	 
	 	 	Title:  	Vice President 	 
	 

LESSEE:

NAP OF THE CAPITAL REGION, LLC,

a Florida limited liability company

By: Terremark Worldwide, Inc.

Its: Sole Member

	 	 	 	 	 
	 	 	 
	 	By:  	                                       /s/ Jose Segrera
 	 
	 	 	Name:  	Jose Segrera 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

GUARANTOR:

TERREMARK WORLDWIDE, INC.,

a Delaware corporation

	 	 	 	 	 
	 	 	 
	 	By:  	                                       /s/ Jose Segrera
 	 
	 	 	Name:  	Jose Segrera 	 
	 	 	Title:  	Chief Financial Officer 	 

34

 

	 	 	 	 	 

APPENDIX I

TO

PARTICIPATION AGREEMENT AND LEASE AGREEMENT

DEFINITIONS AND INTERPRETATION

[See separate text]

35EX-10.50 Lease Agreement

 

Exhibit 10.50

 

 

LEASE AGREEMENT

dated as of February 15, 2007

between

CULPEPER LESSOR 2007-1 LLC,

a Delaware limited liability company,

as Lessor

And

NAP OF THE CAPITAL REGION, LLC,

a Florida limited liability company,

as Lessee

Facility located in Culpeper, Virginia

 

 

 

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE I    DEFINITIONS; INTERPRETATION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II    LEASE OF LEASED PROPERTY	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 2.1
	 	Lease of Leased Property
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 2.2
	 	Lease Term
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III    [INTENTIONALLY OMITTED]	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV    RENT	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 4.1
	 	Rent
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 4.2
	 	Supplemental Rent
	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 4.3
	 	Method of Payment
	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 4.4
	 	Late Payment
	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 4.5
	 	Net Lease; No Setoff, Etc
	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 4.6
	 	The Lessee to Cooperate with the Lessor
	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V    CONDITION OF LEASED PROPERTY; LESSEE’S ACKNOWLEDGEMENT	 	 	4 	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI    LIENS; EASEMENTS; PARTIAL CONVEYANCES	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 6.1
	 	No Liens
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 6.2
	 	Easements and Related Conveyances
	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII    MAINTENANCE AND REPAIR; EXISTING IMPROVEMENTS; ALTERATIONS,	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 7.1
	 	Maintenance and Repair; Compliance With Law
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 7.2
	 	Existing Improvements
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 7.3
	 	Alterations
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 7.4
	 	Title to Alterations
	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII    USE AND POSSESSION; CERTAIN CHARGES	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 8.1
	 	Possession and Use of the Leased Property
	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 8.2
	 	Compliance with Requirements of Law and Insurance Requirements and Easements
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 8.3
	 	Utility Charges
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 8.4
	 	Taxes
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 8.5
	 	Environmental Matters
	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 8.6
	 	Permitted Contests
	 	 	11	 

i

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE IX    INSURANCE	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.1
	 	Insurance Coverages
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.2
	 	Liability Insurance
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.3
	 	Policies
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.4
	 	Insured and Loss Payee Provisions
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.5
	 	Other Insurance
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.6
	 	Deductibles
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 9.7
	 	Failure to Maintain Insurance
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X    ASSIGNMENT AND SUBLEASING; OTHER TRANSFERS	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 10.1
	 	Assignment
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 10.2
	 	Sublease
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 10.3
	 	No Release
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 10.4
	 	Leasehold Financing
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 10.5
	 	Transfer by Lessor
	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI    LOSS, DESTRUCTION, CONDEMNATION OR DAMAGE	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.1
	 	Event of Loss
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.2
	 	Event of Taking
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.3
	 	Casualty
	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.4
	 	Condemnation
	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.5
	 	Verification of Restoration and Rebuilding
	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.6
	 	Application of Payments
	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.7
	 	Prosecution of Awards
	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.8
	 	Application of Certain Payments Not Relating to an Event of Taking
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.9
	 	Other Dispositions
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 11.10
	 	 No Rent Abatement
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII    NATURE OF TRANSACTION; INTEREST CONVEYED TO LESSEE	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XIII    EVENTS OF DEFAULT	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XIV    ENFORCEMENT	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 14.1
	 	 Remedies
	 	 	25	 

ii

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	SECTION 14.2
	 	Remedies Cumulative; No Waiver; Consents
	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XV    PURCHASE OF LEASED PROPERTY	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 15.1
	 	The Lessee’s Option to Purchase
	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 15.2
	 	Purchase Obligation
	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 15.3
	 	Purchase Upon Event of Default
	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 15.4
	 	INTENTIONALLY OMITTED
	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 15.5
	 	Purchase Procedure
	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 15.6
	 	Effect of Conveyance to the Lessee
	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XVI    LESSEE’S PERSONAL PROPERTY	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XVII    RIGHT TO PERFORM FOR LESSEE	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XVIII    MISCELLANEOUS	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.1
	 	Binding Effect; Successors and Assigns; Survival
	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.2
	 	Notices
	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.3
	 	Severability
	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.4
	 	Amendment; Complete Agreements
	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.5
	 	Construction
	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.6
	 	Headings
	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.7
	 	Counterparts
	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.8
	 	Governing Law
	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.9
	 	Liability of the Lessor Limited
	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.10
	 	 Estoppel Certificates
	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.11
	 	 No Joint Venture
	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.12
	 	 No Accord and Satisfaction
	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.13
	 	 No Merger
	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.14
	 	 Survival
	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.15
	 	 Chattel Paper
	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.16
	 	 Time of Essence
	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.17
	 	 Recordation of Lease Supplement
	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.18
	 	 Security Funds
	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.19
	 	 No Illegal Interest to be Charged
	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SECTION 18.20
	 	 Submission to Jurisdiction; Waivers
	 	 	36	 

iii

 

LEASE AGREEMENT

     THIS LEASE AGREEMENT (as hereafter amended and supplemented, the “Lease”), dated as of
February 15, 2007, is made by and between CULPEPER LESSOR 2007-1 LLC, a Delaware limited liability
company, as the Lessor, and NAP OF THE CAPITAL REGION, LLC, a Florida limited liability company, as
the Lessee.

Preliminary Statement

     In accordance with the terms and provisions of the Participation Agreement, this Lease and the
other Operative Documents, (i) the Lessor has agreed to acquire the Leased Property described in
Appendix II hereto, (ii) the Lessor has agreed to lease the Leased Property to the Lessee,
and (iii) the Lessee has agreed to rent the Leased Property from the Lessor.

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

ARTICLE I

DEFINITIONS; INTERPRETATION

     Unless the context shall otherwise require, capitalized terms used and not defined herein
shall have the meanings assigned thereto in Appendix I hereto for all purposes hereof and the rules
of interpretation set forth in Appendix I hereto shall apply to this Lease.

ARTICLE II

LEASE OF LEASED PROPERTY

          SECTION 2.1 Lease of Leased Property. The Lessor hereby demises and leases all of the
Lessor’s interest in the Leased Property to the Lessee, and the Lessee hereby rents and leases all
of the Lessor’s interest in the Leased Property from the Lessor, for and during the entire Lease
Term.

          SECTION 2.2 Lease Term. The term of this Lease (the “Term”) shall commence on
the Closing Date and, unless earlier terminated, shall end on the Lease Termination Date.

ARTICLE III

[INTENTIONALLY OMITTED]

ARTICLE IV

RENT

          SECTION 4.1 Rent.

          (a) Basic Rent. During the Lease Term, the Lessee shall pay to the Lessor Basic Rent
in advance on each Rent Payment Date.

 

 

          (b) Lease Termination Date. On the Lease Termination Date, the Lessee shall pay to
the Lessor an amount equal to the Lease Balance, including all amounts payable as Supplemental Rent
in connection with the provisions of Article XI, Article XIV, and Sections
15.1, 15.2, 15.3, or 15.5 of this Lease and all other amounts provided
in the Operative Documents.

          SECTION 4.2 Supplemental Rent. The Lessee shall pay to the Lessor, or to whomever
shall be entitled thereto as expressly provided herein or in any other Operative Document, any and
all amounts constituting Supplemental Rent promptly as the same shall become due and payable,
provided that if no such date is specified, such item of Supplemental Rent shall be due and
payable promptly upon the Lessee’s receipt of a request for such payment from the Lessor or the
party to whom such payment is due. In the event of any failure on the part of the Lessee to pay
any Supplemental Rent, which failure constitutes an Event of Default, the Lessor shall have all
rights, powers and remedies provided for herein or by law or in equity or otherwise in the case of
nonpayment of Basic Rent. All Supplemental Rent to be paid pursuant to this Section 4.2
shall be payable in the type of funds and in the manner set forth in Section 4.3(a) of this
Lease.

          SECTION 4.3 Method of Payment.

          (a) Cash Payment. All Basic Rent and Supplemental Rent shall be paid by the Lessee to
the Lessor (or, in the case of Supplemental Rent, to such Person as may be entitled thereto) at
such place and in such manner as the Lessor (or such other Person) shall specify in writing to the
Lessee. Each payment of Rent (including payments under Article XV hereof) shall be made by
the Lessee prior to 10:00 a.m., New York, New York time (and payments made after such time shall be
deemed to have been made on the next day) at the place of payment in funds consisting of lawful
currency of the United States of America which shall be immediately available on the scheduled date
when such payment shall be due, unless with respect to Supplemental Rent such scheduled date shall
not be a Business Day, in which case such payment shall be made on the next succeeding Business
Day.

          (b) PIK Rent Payment. Notwithstanding the foregoing and in lieu of paying any
installment of Basic Rent in the manner provided in Section 4.3(a) above, during the Lease
Term, the Lessee hereby elects to increase the Lease Balance by the amount of such installment of
Basic Rent that would have otherwise been due and payable on the applicable Rent Payment Date (a
“PIK Rent Payment”), and the Lease Balance shall be automatically deemed to have been
increased by the amount of the installment of Basic Rent that would have otherwise been payable by
the Lessee on the applicable Rent Payment Date for all purposes, including, without limitation, for
purposes of determining the amount of future installments of Basic Rent. At the request of the
Lessor, the Lessee shall enter into any documents necessary to reflect an increase in the Lease
Balance as a result of the Lessee’s election to make a PIK Rent Payment. Alternatively, Lessee may
elect to pay any installment of Basic Rent in cash in lieu of a PIK Rent Payment by notifying the
Lessor of such election in writing at least five (5) Business Days prior to the applicable Rent
Payment Date.

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          SECTION 4.4 Late Payment. If any Rent shall not be paid when due, the Lessee shall
pay to the Lessor (or, in the case of Supplemental Rent, to such Person as may be entitled
thereto), as Supplemental Rent, a late charge equal to five percent (5%) of the overdue amount,
together with interest at the Overdue Rate (to the maximum extent permitted by law) on such overdue
amount from and including the due date thereof (without regard to any applicable grace period) to
but excluding the Business Day of payment thereof.

          SECTION 4.5 Net Lease; No Setoff, Etc. This Lease is a net lease and, notwithstanding
any other provision of this Lease, the Lessee shall pay all Basic Rent and Supplemental Rent and
all other amounts due and payable under the Operative Documents, and all costs, charges, taxes,
assessments and other expenses (foreseen or unforeseen) for which the Lessee or any Indemnitee is
or shall become liable by reason of the Lessee’s or such Indemnitee’s estate, right, title or
interest in the Leased Property, or that are connected with or arise out of the acquisition,
installation, possession, use, occupancy, leasing, subleasing, maintenance, ownership, leasing,
repairs and rebuilding of, or addition to, the Leased Property or any portion thereof, all of which
shall be paid without counterclaim, setoff, deduction or defense of any kind and without abatement,
suspension, deferment, diminution or reduction, and the Lessee’s obligation to pay all such amounts
throughout the Lease Term is absolute and unconditional; provided, however, that the Lessor shall
be solely responsible for income and franchise taxes as and to the extent provided in Section
7.4 of the Participation Agreement. The obligations and liabilities of the Lessee hereunder
shall be absolute, unconditional and irrevocable and shall in no way be released, discharged or
otherwise affected for any reason, including without limitation (i) any defect in the condition,
merchantability, design, quality or fitness for use of the Leased Property or any part thereof, or
the failure of the Leased Property to comply with Applicable Law, including any inability to occupy
or use the Leased Property by reason of such non-compliance, (ii) any damage to, removal,
abandonment, salvage, loss, contamination of or Release from, scrapping or destruction of or any
requisition or taking of the Leased Property or any part thereof, (iii) any restriction, prevention
or curtailment of or interference with any use of the Leased Property or any part thereof,
including eviction, (iv) any defect in title to or rights to the Leased Property or any Lien on
such title or rights or on the Leased Property, (v) any change, waiver, extension, indulgence or
other action or omission or breach in respect of any obligation or liability of or by the Lessor,
the Lessee or any other Person, (vi) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceedings relating to the Lessee, the Lessor,
or any other Person, or any action taken with respect to this Lease by any trustee or receiver of
the Lessee, the Lessor, or any other Person, or by any court, in any such proceeding, (vii) any
failure on the part of the Lessor or any other Person to perform or comply with any of the terms of
this Lease or any other Operative Document, (viii) any invalidity or unforceability or
disaffirmance of this Lease or any provision hereof or any of the other Operative Documents or any
provision of any thereof by or against the Lessee, (ix) any action by any court, administrative
agency or other Governmental Authority, (x) any restriction, prevention or curtailment of or
interference with any use of the Leased Property or any part thereof, (xi) the impossibility of
performance by the Lessee, the Lessor or both, (xii) any claim that the Lessee has or might have
against any Person, including without limitation, the Lessor, (xiii) the failure of the Lessee to
achieve any accounting or tax benefits or the charterization of the Transaction intended by
Article XII of this Lease and Section 2.3 of the Participation Agreement, or (xiv) any
other occurrence whatsoever, whether similar or dissimilar to the foregoing, that could constitute
a release or discharge, or otherwise affect, any

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obligation or liability of the Lessee, whether or not the Lessee shall have notice or
knowledge of any of the foregoing; provided that the waivers and acknowledgements in this
Section 4.5 shall not be deemed to be or construed as a waiver of the Purchase Option or
any of the Lessee’s rights set forth in Article XV or the Lessor’s obligations contained in
Article V. Except as specifically set forth in Articles XI or XV of this
Lease, this Lease shall be noncancellable by the Lessee for any reason whatsoever, and the Lessee,
to the extent permitted by Applicable Law, waives all rights now or hereafter conferred by statute
or otherwise to quit, terminate or surrender this Lease, or to any diminution, abatement or
reduction of Rent payable by the Lessee hereunder. If for any reason whatsoever this Lease shall
be terminated in whole or in part by operation of law or otherwise, except as expressly provided in
Article XI or Article XV of this Lease, the Lessee shall, unless prohibited by
Applicable Law, nonetheless pay to the Lessor (or, in the case of Supplemental Rent, to whomever
shall be entitled thereto) an amount equal to each Rent payment (including the Lease Balance or any
other amount due and payable under any Operative Documents) at the time and in the manner that such
payment would have become due and payable under the terms of this Lease if it had not been
terminated in whole or in part. Each payment of Rent and any payment of the Lease Balance made by
the Lessee hereunder shall be final and, absent manifest error in the computation of the amount
thereof, the Lessee shall not seek or have any right to recover all or any part of such payment
from the Lessor, or any party to any agreements related thereto for any reason whatsoever. The
Lessee assumes the sole responsibility for the condition, use, operation, maintenance, and
management of the Leased Property and the Lessor shall have no responsibility in respect thereof
and shall have no liability for damage to the property of either the Lessee or any subtenant of the
Lessee on any account or for any reason whatsoever other than by reason of the Lessor’s willful
misconduct or gross negligence or negligence in the handling of funds or breach of its obligations
contained in Article V or Article XV; provided, however, any
liability of the Lessor with respect to any such willful misconduct or gross negligence or
negligence in the handling of funds or breach of its obligations contained in Article V or
Article XV shall not limit or affect the Lessee’s absolute obligations as set forth in this
Section 4.5.

          SECTION 4.6 The Lessee to Cooperate with the Lessor. The Lessee hereby agrees to use
its best efforts to supply the Lessor with all such information necessary in order for the Lessor
to maintain its books and accounts and prepare all required federal, state and local tax returns.

ARTICLE V

CONDITION OF LEASED PROPERTY; LESSEE’S ACKNOWLEDGEMENT

     THE LESSEE ACKNOWLEDGES AND AGREES THAT IT IS LEASING THE LEASED PROPERTY “AS IS, WHERE IS”
WITHOUT REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR IMPLIED) BY THE LESSOR AND SUBJECT TO (A)
THE EXISTING STATE OF TITLE, (B) THE RIGHTS OF ANY PARTIES IN POSSESSION THEREOF, (C) ANY STATE OF
FACTS WHICH AN ACCURATE SURVEY OR PHYSICAL INSPECTION MIGHT SHOW, AND (D) ALL APPLICABLE LAWS AND
VIOLATIONS OF REQUIREMENTS OF LAW WHICH MAY EXIST ON THE DATE HEREOF OR ON THE CLOSING DATE. THE
LESSOR HAS NOT MADE AND SHALL NOT BE DEEMED TO HAVE MADE ANY REPRESENTATION, WARRANTY OR COVENANT
(EXPRESS OR IMPLIED) AND SHALL NOT BE DEEMED TO HAVE ANY

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LIABILITY WHATSOEVER AS TO THE TITLE (OTHER THAN FOR LESSOR LIENS), VALUE, HABITABILITY, USE,
CONDITION, DESIGN, COMPLIANCE WITH LAW, ENVIRONMENTAL CONDITION, OPERATION, OR FITNESS FOR USE OF
THE LEASED PROPERTY (OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT
WHATSOEVER (EXPRESS OR IMPLIED) WITH RESPECT TO THE LEASED PROPERTY (OR ANY PART THEREOF) AND THE
LESSOR SHALL NOT BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREIN (OTHER THAN FOR LESSOR
LIENS) OR THE FAILURE OF THE LEASED PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY REQUIREMENT
OF LAW. ALL RISKS INCIDENTAL TO THE LEASED PROPERTY SHALL BE BORNE BY THE LESSEE, AND THE LESSOR
SHALL HAVE NO RESPONSIBILITY WITH RESPECT THERETO. THE LESSOR HAS NOT MADE AND SHALL NOT BE DEEMED
TO HAVE MADE ANY REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) AND SHALL NOT BE DEEMED TO HAVE
ANY LIABILITY WHATSOEVER AS TO THE VALUE, MERCHANTABILITY, TITLE, HABITABILITY, CONDITION, DESIGN,
COMPLIANCE WITH LAW, ENVIRONMENTAL CONDITION, OPERATION, OR FITNESS FOR USE OF THE LEASED PROPERTY
(OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER (EXPRESS OR IMPLIED) WITH
RESPECT TO THE LEASED PROPERTY (OR ANY PART THEREOF), ALL SUCH WARRANTIES BEING HEREBY DISCLAIMED,
AND THE LESSOR SHALL NOT BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREIN OR THE FAILURE
OF THE LEASED PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY APPLICABLE LAW except that the
Lessor hereby represents, warrants and covenants and agrees that that the Leased Property shall at
all times remain free of Lessor Liens. As between the Lessor and the Lessee, the Lessee shall be
and acknowledges that it has been afforded full opportunity to inspect the Leased Property prior to
the Closing Date, and shall enter into this Lease solely on the basis of the results of its own
inspections and all risks incident to the matters discussed in the two preceding sentences, as
between the Lessor, on the one hand, and the Lessee, on the other, are to be borne by the Lessee.
The provisions of this Article V have been negotiated and, except to the extent otherwise
expressly stated, the foregoing provisions are intended to be a complete exclusion and negation of
any representations or warranties by the Lessor, express or implied, with respect to the Leased
Property that may arise pursuant to any law now or hereafter in effect or otherwise.

ARTICLE VI

LIENS; EASEMENTS; PARTIAL CONVEYANCES

          SECTION 6.1 No Liens. Commencing on the Closing Date and thereafter, the Lessee shall
not directly or indirectly create, incur or assume, any Lien on or with respect to the Leased
Property, the title thereto, or any interest therein, including any Liens which arise out of the
possession, use, occupancy, construction, repair or rebuilding of the Leased Property or by reason
of labor or materials furnished or claimed to have been furnished to the Lessee, or any of its
contractors or agents or by reason of the financing of any personalty or equipment purchased or
leased by the Lessee or Alterations constructed by the Lessee, except in all cases Permitted Liens.
The Lessee, at its own expense, will promptly pay, satisfy and otherwise take such actions as may
be necessary to keep the Leased Property free and clear of,

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and duly to discharge, eliminate or bond in a manner reasonably satisfactory to the Lessor,
any such Lien (other than Permitted Liens) if the same shall arise at any time.

          SECTION 6.2 Easements and Related Conveyances. Notwithstanding the provisions of
Section 6.1, at the written request of the Lessee, and provided that no Default or Event of
Default shall at the time have occurred and remain outstanding, the Lessor shall, from time to time
during the Lease Term and upon reasonable advance written notice from the Lessee and receipt of the
materials specified in the next succeeding sentence (and subject to the conditions set forth in the
next succeeding sentence), within fifteen (15) business days of receipt of a request, consent to
and join in any (i) grant of easements, licenses, rights of way and other rights in the nature of
easements, including, without limitation, utility easements to facilitate the Lessee’s use,
development and construction of the Leased Property, (ii) release or termination of easements,
licenses, rights of way or other rights in the nature of easements which are for the benefit of the
Leased Property or any portion thereof, (iii) dedication or transfer of portions of the Land, not
improved with a building, for road, highway or other public purposes, and (iv) execution of
agreements for ingress and egress and amendments to any covenants and restrictions affecting the
Leased Property or any portion thereof. The obligations of the Lessor pursuant to the preceding
sentence shall be subject to the requirements that:

          (a) any such action shall be at the sole cost and expense of the Lessee and the Lessee shall
pay all reasonable and documented out-of-pocket costs of the Lessor in connection therewith
(including, without limitation, the reasonable and documented fees of attorneys, engineers and
other professionals reasonably retained by such Persons in connection with any such action);

          (b) the Lessee shall have delivered to the Lessor a certificate of a Responsible Officer of
the Lessee stating that (1) such action will not cause the Leased Property or any portion thereof
to fail to comply with the provisions of this Lease or any other Operative Documents or with
Applicable Law, (2) such action will not impair the Fair Market Sales Value of the Leased Property
in any material respect, and (3) such action shall not affect any obligation of the Lessee
hereunder and that this Lease and other Operative Documents to which the Lessee is a party are in
full force and effect as against the Lessee;

          (c) all consideration received, if any, in connection with such action (net of all reasonable
out-of-pocket expenses incurred by the Lessee and the Lessor in connection therewith) shall be paid
to and retained by the Lessee, except that during the existence of any Default or Event of Default
such consideration shall be paid to the Lessor;

          (d) the documentation in connection with any release or conveyance shall be in a form
reasonably acceptable to the Lessor; and

          (e) in the case of any release or conveyance, if the Lessor so requests and to the extent
available in the State, the Lessee will cause to be issued and delivered to the Lessor by the Title
Insurance Company an endorsement to the Title Policy pursuant to which the Title Insurance Company
agrees that its liability for the payment of any loss or damage under the terms and provisions of
the Title Policy will not be affected by reason of the fact that a portion of
the real property referred to in Schedule A of the Title Policy has been released or conveyed
by the Lessor.

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ARTICLE VII

MAINTENANCE AND REPAIR; EXISTING IMPROVEMENTS;

ALTERATIONS,

          SECTION 7.1 Maintenance and Repair; Compliance With Law. The Lessee, at its own
expense, shall at all times during the Lease Term (i) maintain the Leased Property in good repair
and condition (subject to ordinary wear and tear) and in accordance with prudent industry standards
and all Insurance Requirements, (ii) make all repairs in accordance with, and maintain (whether or
not such repairs or maintenance requires structural modifications or Alterations) and operate and
otherwise keep the Leased Property in compliance with, Applicable Law (including, without
limitation, Environmental Laws) and (iii) make all structural and nonstructural and ordinary and
extraordinary (whether foreseen or unforeseen) repairs, replacements and renewals of the Leased
Property or any part thereof which may be required to keep the Leased Property in the condition
required by the preceding clauses (i) and (ii), including without limitation, (x) repairs,
replacements and renewals that would constitute capital expenditures under GAAP if incurred by an
owner of property, and (y) procuring, maintaining and complying with all licenses, permits, orders,
approvals, consents and other authorizations required for the use, occupancy, maintenance and
operation of the Leased Property. The Lessee waives any right that it may now have or hereafter
acquire to (a) require the Lessor to maintain, repair, replace, alter, remove or rebuild all or any
part of the Leased Property or (b) make repairs at the expense of the Lessor pursuant to any
Applicable Law or other agreements or otherwise. The Lessor shall not be liable to the Lessee or
to any contractors, subcontractors, laborers, materialmen, suppliers or vendors for services
performed or material provided on or in connection with the Leased Property or any part thereof.
The Lessor shall not be required to maintain, alter, repair, rebuild or replace the Leased Property
in any way.

          SECTION 7.2 Existing Improvements. Following the Commencement Date, the Lessor
acknowledges and agrees that the Lessee intends, at its sole cost and expense, to demolish all
existing improvements located on the Land. In connection therewith, the Lessee covenants and
agrees to complete all demolition work in compliance with all Applicable Law (including, without
limitation, Environmental Laws) and to manage, transport and dispose of any and all debris
resulting from such demolition work in compliance with all Applicable Law (including, without
limitation, Environmental Laws), which disposition shall be off site if required by Environmental
Laws and other Applicable Law. In addition, the Lessee further covenants and agrees not to cause
any Release on or about the Leased Property during the course of such demolition work or during the
management, transportation or disposal of the debris resulting from such demolition work.

          SECTION 7.3 Alterations. Following the demolition of the existing improvements on the
Land in accordance with Section 7.2 above, during the Lease Term, the Lessee shall have the
right, at any time and from time to time, without any notice to or consent of the Lessor, at the
Lessee’s sole cost and expense, to make such Alterations, structural or otherwise, to the Leased
Property as the Lessee shall deem necessary or desirable, subject to the following conditions:

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          (a) No Alterations shall be undertaken until the Lessee shall have procured and paid for, so
far as the same may be required from time to time, all required municipal and other governmental
permits and authorizations of the various municipal departments and governmental subdivisions
having jurisdiction, and the Lessor, at the Lessee’s expense, shall join in the application for
such permits or authorizations whenever such action is necessary;

          (b) Any structural Alterations which are alterations to then-existing structures on the Leased
Property shall not be undertaken until the Lessee has delivered to the Lessor (i) a certificate
from a structural engineer stating that such Alterations shall not adversely affect the structural
integrity of the Leased Property and (ii) a certificate from a Responsible Officer of the Lessee
stating that such Alterations shall not impair the revenue production potential (in the Lessee’s
business) of the Leased Property in any material respect;

          (c) All Alterations shall be located solely on the Leased Property and shall be of such a
character that, when completed, the Fair Market Sales Value of the Leased Property shall be not
less than the Fair Market Sales Value of the Leased Property immediately before any such
Alterations;

          (d) All work done in connection with any Alterations shall be done in a good and workmanlike
manner and in compliance with applicable building and zoning laws and with all other Applicable
Law, and with all Insurance Requirements; the cost of any such Alterations shall be paid by the
Lessee, so that the Leased Property shall at all times be free of Liens for labor and materials
supplied or claimed to have been supplied (other than inchoate liens or liens promptly paid or
bonded off in accordance with Applicable Law and with the Lessor’s prior written consent); and the
work of any Alterations shall be prosecuted with reasonable dispatch, unavoidable delays excepted;

          (e) Worker’s compensation insurance with the minimum coverage limits required by Applicable
Law covering all persons employed in connection therewith and with respect to whom death or bodily
injury claims could be asserted against the Lessor or the Lessee or the Leased Property and general
liability and property damage insurance in accordance with the requirements of Article IX
for the mutual benefit of the Lessor and the Lessee shall be maintained by the Lessee at all times
when any work is in process in connection with any Alterations; and

          (f) The Lessee shall not make any Alterations in violation of the terms of any restriction,
easement, condition, covenant or other similar matter affecting title to or binding on the Leased
Property.

          SECTION 7.4 Title to Alterations. Title to all Alterations shall without further act
vest in the Lessor and shall be deemed to constitute a part of the Leased Property and be subject
to this Lease.

ARTICLE VIII

USE AND POSSESSION; CERTAIN CHARGES

          SECTION 8.1 Possession and Use of the Leased Property. The Lessee intends to
construct Alterations on and to initially use and operate the Leased Property as a data

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center and collocation facility for Internet services and connections. Thereafter, during the
Lease Term, the Lessee may use the Leased Property for any other uses and purposes permitted under
applicable zoning and land use laws, provided such change in use does not have a material adverse
impact on the Fair Market Sales Value of the Leased Property. The Lessee shall pay, or cause to be
paid, all charges and costs required or incurred in connection with the use of the Leased Property
as contemplated by this Lease. The Lessee shall not commit or permit any waste of the Leased
Property or any part thereof.

          SECTION 8.2 Compliance with Requirements of Law and Insurance Requirements and
Easements. Subject to the terms hereof relating to permitted contests described in Section
8.6, below, the Lessee, at its sole cost and expense, shall (a) comply in all respects with all
Requirements of Law (including all Environmental Laws) and Insurance Requirements and Permitted
Liens relating to the Leased Property, including the use, construction, operation, maintenance,
repair and restoration thereof, whether or not compliance therewith shall require structural or
extraordinary changes in the Leased Property or interfere with the use and enjoyment of the Leased
Property, and (b) procure, maintain and comply with all licenses, permits, orders, approvals,
consents and other authorizations required for the construction, use, maintenance and operation of
the Leased Property and for the occupancy, use, operation, maintenance, repair and restoration of
the Leased Property.

          SECTION 8.3 Utility Charges. During the Lease Term, the Lessee shall pay or cause to
be paid all charges for electricity, power, gas, oil, water, telephone, sanitary sewer service and
all other rents and utilities used in or on the Leased Property. The Lessee shall be entitled to
receive any credit or refund with respect to any utility charge paid by the Lessee and the amount
of any credit or refund received by the Lessor on account of any utility charges paid by the
Lessee, net of the costs and expenses reasonably incurred by the Lessor in obtaining such credit or
refund, shall be promptly paid over to the Lessee.

          SECTION 8.4 Taxes. During the Lease Term, the Lessee shall pay when due and assume
liability for all Taxes affecting or that may at any time become a Lien upon the Leased Property,
and does hereby agree to indemnify, protect and defend the Leased Property and all Tax Indemnitees,
and hold them harmless against, all Taxes in accordance with the provisions of Section 7.4
of the Participation Agreement.

          SECTION 8.5 Environmental Matters.

          (a) Promptly, but in any event within fifteen (15) days, after the Lessee’s obtaining
knowledge of the existence of an Environmental Violation, the Lessee shall notify the Lessor in
writing of such Environmental Violation, and the Lessee shall within an additional sixty (60) days
deliver an Environmental Site Assessment in form and content acceptable to the Lessor evaluating
the Environmental Violation and accompanied by a plan of remediation in reasonable detail that
shall include, among other things, an estimate of the cost of implementing and completing the plan
of remediation and an estimated time of completion for the remediation. If the Lessor (or any
environmental engineer or consultant retained by the Lessor) shall require any supplements or
revisions to the Environmental Site Assessment or to the proposed plan of remediation, the Lessee
shall cause the same to be promptly supplemented and revised accordingly. If the Lessor shall not
elect to terminate this Lease as provided in Section 8.5(b)

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below, at the Lessee’s sole cost and expense, the Lessee shall promptly and diligently
commence any response, clean up, remedial or other action necessary to remove, clean up or
remediate the Environmental Violation in accordance with the Environmental Site Assessment and the
proposed plan of remediation, and in conformity with the terms of Section 8.2 hereof and
Section 5.4(e) of the Participation Agreement, and shall cause any Lien resulting from the
Environmental Violation to be released and discharged. If the Lessor does not deliver a
Termination Notice, as provided in Section 8.5(b) below, the Lessee shall, upon completion
of the remedial action, cause to be prepared a supplemental Environmental Site Assessment
reflecting the completion of the remediation plan and describing the remedial actions taken by the
Lessee (or its agents) pursuant thereto, and a statement by the consultant that the Environmental
Violation has been remedied in compliance in all respects with the plan of remediation and
applicable Environmental Laws.

          (b) If an Environmental Violation occurs or is discovered the cost of remediation of which
would exceed Two Hundred Fifty Thousand Dollars ($250,000) and the Lessee does not, within such
reasonable period of time as maybe prescribed by the Lessor, undertake such actions as the Lessor
may reasonably require to assure that such Environmental Violation will be remediated in accordance
with Applicable Law, the Lessor and the Lessee each may terminate this Lease by giving written
notice to the other party that this Lease is to be terminated as a consequence of the occurrence of
such Environmental Violation (a “Termination Notice”), and, upon the giving of such
Termination Notice, the Lessee shall be obligated, and hereby agrees, to purchase the Lessor’s
interest in the Leased Property on or prior to the date occurring sixty (60) days after the date of
the Termination Notice by paying to the Lessor an amount equal to the Lease Balance on such
termination date. On the day of the payment by the Lessee of the Lease Balance in accordance with
the Termination Notice (such day, the “Termination Date”), this Lease shall terminate with
respect to the Leased Property; provided, however, that such termination shall not
release the Lessee from or effect a waiver of any of the Lessee’s remaining obligations under the
Operative Documents (except to the extent of such payment of the Lease Balance), including, without
limitation, Lessee’s indemnification obligations under Section 7 of the Participation
Agreement. Upon the Lessor’s receipt of such amount, the Lessor shall cause its entire interest in
the Leased Property to be conveyed to the Lessee in accordance with and subject to the Purchase
Procedure as set forth in Section 15.5 below; provided, however, that (i)
such conveyance shall be subject to Permitted Liens, but free and clear of Lessor Liens, (ii) the
Lessor shall have no obligation to remove title defects other than the Lessor’s obligation to
remove Lessor Liens and (iii) the Lessee’s failure to obtain a title insurance policy shall not
affect the Lessee’s obligation to so purchase the Lessor’s interest in the Leased Property. Upon
completion of such purchase and payment in full of the Lease Balance, but not prior thereto, the
Leased Property shall be deemed released from this Lease, and all obligations of the Lessee and the
Lessor with respect to the Leased Property shall terminate, except with respect to obligations,
indemnities and liabilities hereunder, actual or contingent, that have arisen or relate to events
occurring on or prior to such date of purchase, or which are expressly stated in the Operative
Documents to survive termination of this Lease. Upon the consummation of the purchase of the
Leased Property pursuant to this Section, and the payment in full of the Lease Balance, any
proceeds derived from insurance maintained by the Lessee pursuant to this Lease for the Leased
Property in the hands of or under the control of the Lessor shall be paid over to, or retained by,
the Lessee or as it may direct, and, to the extent permitted by Applicable Law and applicable
contractual agreements and/or policies, the Lessor shall assign to the Lessee without warranty, all
of the Lessor’s rights to and interest in any claims relating to
the Leased Property under such insurance and to any subrogation claims resulting from such
Environmental Violation.

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          (c) Promptly, but in any event within fifteen (15) days from the Lessee’s obtaining knowledge
thereof, the Lessee shall provide to the Lessor written notice of any pending or, to the Lessee’s
knowledge, threatened claim, action or proceeding involving any Environmental Law or any Release on
or about the Leased Property (an “Environmental Claim”). All such notices shall describe
in reasonable detail the nature of the claim, action or proceeding and the Lessee’s proposed
response thereto. In addition, the Lessee shall provide to the Lessor, within fifteen (15) days of
receipt, copies of all written communications with any Governmental Authority relating to any
Environmental Claim. The Lessee shall also promptly provide such detailed reports of any
Environmental Claims as may reasonably be requested by the Lessor.

          SECTION 8.6 Permitted Contests. If no Default or Event of Default has occurred and
remains outstanding, to the extent and for so long as (a) a test, challenge, appeal or proceeding
for review of any Applicable Law relating to the Leased Property shall be prosecuted diligently and
in good faith in appropriate proceedings by the Lessee or (b) compliance with such Applicable Law
shall have been excused or exempted by a valid nonconforming use, variance, permit, waiver,
extension or forbearance, the Lessee shall not be required to comply with such Applicable Law but
only if and so long as any such test, challenge, appeal, proceeding, nonconforming use, variance,
permit, waiver, extension, forbearance or noncompliance shall not, in the reasonable opinion of the
Lessor, involve (A) any risk of criminal liability being imposed on the Lessor or the Leased
Property, or (B) any risk of (1) foreclosure, forfeiture or loss of the Leased Property, or any
part thereof, or (2) the nonpayment of Basic Rent or (C) any risk of (1) the sale of, or the
creation of any Lien (other than a Permitted Lien) on, any part of the Leased Property, (2) civil
liability being imposed on the Lessor or the Leased Property, or (3) interference with, the use,
possession or disposition of the Leased Property in any respect. The Lessor will not be required
to join in any proceedings pursuant to this Section 8.6 unless a provision of any
Applicable Law requires that such proceedings be brought by or in the name of the Lessor; and in
that event the Lessor will join in the proceedings or permit them or any part thereof to be brought
in its name if and so long as (i) no Default or Event of Default has occurred and is continuing and
(ii) the Lessee pays all related expenses and indemnifies the Lessor. The right of the Lessee to
contest any Applicable Law as provided in this Section 8.6 shall not limit the Lessee’s
indemnification obligations set forth in Article VII of the Participation Agreement and
elsewhere in the Operative Documents. To the extent of any conflicts between this Section
8.6 and Article VII of the Participation Agreement, the Participation Agreement shall
control.

ARTICLE IX

INSURANCE

          SECTION 9.1 Insurance Coverages. At all times (except as otherwise indicated) during
which there exist any Alterations on the Leased Property, the Lessee, at its sole cost and expense,
shall cause the Leased Property and such Alterations to be insured for the benefit of the Lessor
and the Lessee against the following:

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          (a) loss or damage by fire, vandalism and malicious mischief and such other risks as may be
included in the so-called “Special Form” form of insurance providing coverage against all risks of
physical loss, in an amount not less than the then Full Replacement Cost of all such Alterations on
the Leased Property; and

          (b) flood hazard coverage, if available under any applicable federal flood insurance program,
in an amount reasonably satisfactory to the Lessor (but only if the Leased Property is located in a
special flood hazard area).

     At any time during which the Lessee is making any Alterations, as to such Alterations under
construction, the Lessee shall carry or cause to be carried builder’s risk coverage under a
so-called “Special Form” non-reporting completed value form of policy. The term “Full
Replacement Cost” shall mean the actual replacement cost of the Alterations (excluding
foundation and excavation costs) without physical depreciation, including, without limitation, any
costs that may be required to cause the Alterations to be reconstructed in accordance with
then-current Applicable Law.

          SECTION 9.2 Liability Insurance. The Lessee shall also maintain insurance for the
mutual benefit of the Lessor, each other Indemnitee, and the Lessee against claims for death,
personal injury, bodily injury and property damage with respect to the Leased Property, under a
policy of general public liability insurance, on an occurrence basis, with such limits as may
reasonably be required by the Lessor from time to time, but not less than $2,000,000 combined
single limit, per occurrence (unless otherwise agreed to in writing by the Lessor), with excess
umbrella liability coverage of not less than $10,000,000.

          SECTION 9.3 Policies. All insurance provided for under this Lease shall be effected
under valid enforceable policies issued by insurers of recognized responsibility, qualified to do
business in the State in which the Leased Property is located, having a Best Insurance Guide Rating
of A/VIII or better (or an equivalent rating from another publication of a similar nature as shall
be in current use and approved by the Lessor), or otherwise reasonably acceptable to the Lessor.
Upon the execution of this Lease, the Lessee shall deliver to the Lessor original certificates of
such insurance and copies of such policies in form reasonably satisfactory to the Lessor. At least
thirty (30) days prior to the expiration date of any policy, a certificate of the renewal policy
for such insurance shall be delivered by the Lessee to the Lessor, and certificates thereof in form
reasonably satisfactory to the Lessor shall be delivered as aforesaid, together with satisfactory
evidence of payment of the premium thereon. All policies referred to in Section 9.1 shall
contain agreements by the insurers that (i) any loss shall be payable to the Lessor,
notwithstanding any act or negligence of the Lessee or any Person having an interest in the Leased
Property which might otherwise result in forfeiture of said insurance, provided that all such
policies of insurance (including, without limitation, builder’s risk insurance) shall name the
Lessor, its successors and assigns, as mortgagee and sole loss payee, (ii) such policies shall not
be cancelable except upon thirty (30) days’ prior written notice to each named insured and loss
payee, (iii) the coverage afforded thereby shall not be affected by the performance of any work in
or about the Leased Property, (iv) all rights of subrogation, offset, counterclaim or other
deduction are waived against the Lessor, the Lessee and their respective officers, employees,
directors, incorporators, shareholders and agents, and (v) the coverage afforded by such policies
is primary without any right of contribution. Notwithstanding the foregoing, in lieu of delivering

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copies of policies pursuant to this Article IX on the Closing Date, the Lessee may
provide certificates of such insurance on form ACCORD 28 (or the equivalent), executed by each
insurance company or its authorized agent, provided that all certificates and evidence of insurance
shall contain information reasonably satisfactory to the Lessor (including, without limitation,
attachment and/or itemization of all applicable coverages and endorsements). All policies shall be
written to avoid application of co-insurance.

          SECTION 9.4 Insured and Loss Payee Provisions. All policies of insurance required
herein shall name the Lessor, its successors and/or assigns, as an additional insured as its
interests may appear. All policies referred to in Section 9.1 (including, without
limitation, builder’s risk insurance), shall name the Lessor, its successors and/or assigns, as
mortgagee and sole loss payee. The loss, if any, under the policies referred to in Section
9.1 shall be adjusted with the insurance companies with joint participation by the Lessee and
the Lessor. To the extent there is a Fee Mortgagee or an Approved Leasehold Mortgagee at the time
of such loss, such Fee Mortgagee and/or such Approved Leasehold Mortgagee shall also be entitled to
participate with the Lessee and the Lessor in adjustment of such loss. The loss, if any, under all
policies referred to in Section 9.1 shall be payable to the Lessor. All such policies
shall expressly provide that loss thereunder shall be adjusted and paid as provided in this
Section. Any loss paid to the Lessee under any insurance policy referred to in Section 9.1
shall be held by the Lessee in trust for application to the cost of restoring, repairing, replacing
or rebuilding the Leased Property. Prior to the occurrence of any Default or Event of Default, any
loss paid to the Lessor shall be applied by it and disbursed by it in accordance with the
provisions of Section 11.6 of this Lease.

          SECTION 9.5 Other Insurance. With the prior written consent of the Lessor, the Lessee
may take out insurance of the kind and in the amounts provided for under Section 9.1 and
9.2 under a blanket insurance policy or policies which can cover other properties owned or
operated by the Lessee as well as the Leased Property; provided, however, that any
such policy of insurance shall (a) specify therein, or the Lessee shall furnish the Lessor with a
written statement from the insurers under such policies specifying, the amount of the total
insurance allocated to the Leased Property, which amount shall be not less than the amount required
by this Article IX to be carried, and (b) not contain any clause which would result in the
insured thereunder being required to carry insurance with respect to the property covered thereby
in an amount equal to a minimum specific percentage of the value of such property in order to
prevent the insured therein named from becoming a co-insurer of any loss with the insurer under
such policy. The Lessee shall furnish to the Lessor, within thirty (30) days after the filing
thereof with any insurance rate-making body, copies of the schedule or make-up of all property
covered by every such policy of blanket insurance.

          SECTION 9.6 Deductibles. Any insurance provided for under this Lease may provide for
commercially reasonable deductibles.

          SECTION 9.7 Failure to Maintain Insurance. If the Lessee shall fail to maintain any
insurance required to be maintained herein or in any other Operative Document, then without
limiting the application of the provisions of Article XIII(d) hereof, the Lessor may, but
shall not be required to, obtain such insurance on behalf of the Lessee. In the event the Lessor
shall obtain such insurance, (a) the Lessee shall pay the costs of obtaining such insurance

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as Supplemental Rent upon demand therefore, plus interest thereon at the Overdue Rate from
that due date until paid by the Lessee, and (b) the Lessee may provide other insurance conforming
to the requirements of this Lease, in which instance any insurance obtained by the Lessor shall be
cancelled at its request. The rights of the Lessor under this Section 9.7 shall be in
addition to, and not in place of, any other rights such parties may have under this Lease and the
other Operative Documents.

ARTICLE X

ASSIGNMENT AND SUBLEASING; OTHER TRANSFERS

          SECTION 10.1 Assignment. Except as provided in Section 10.4, during the Lease
Term, the Lessee may not assign, transfer or encumber, in whole or in part, any of its right, title
or interest in, to or under this Lease without the Lessor’s prior consent, which consent may be
given or withheld in the Lessor’s sole and absolute discretion. Any attempted assignment, transfer
or encumbrance made without the Lessor’s prior consent shall be null and void.

          SECTION 10.2 Sublease. During the Lease Term, the Lessee may not sublease, all or any
portion of the Leased Property to any Person, without the Lessor’s prior consent, which consent may
be given or withheld in the Lessor’s sole and absolute discretion. Notwithstanding the foregoing,
the Lessee may, without the prior consent of the Lessor, (i) as necessary or appropriate for the
operation of the Lessee’s business, sublease the Leased Property to a direct or indirect
wholly-owned subsidiary of the Lessee or the Guarantor, (ii) sublease the Leased Property to any
Person in connection with any merger, acquisition or consolidation of the Lessee and/or the
Guarantor or the acquisition of all or substantially all of the assets of the Lessee and/or the
Guarantor, and (iii) sublease (or grant a license to use) all or any portion of the Leased Property
to any Person on arm’s length terms in the ordinary course of the Lessee’s business operations.
The Lessee shall notify the Lessor promptly, and in any event within ten (10) days, of its entering
into any sublease (or license agreement) not requiring the Lessor’s prior consent and which is
Material and shall provide the Lessor with a copy of such sublease (or license agreement). The
Lessor covenants and agrees not to interfere with or disturb a subtenant’s possession of the Leased
Property or any applicable portion thereof, so long as (a) such subtenant is not then in default
under its sublease beyond any applicable notice and cure periods, (b) such subtenant continues to
pay the rent provided for in its sublease and to perform all of its other obligations under its
sublease as and when the same become due and (c) such subtenant agrees to attorn to and be bound
under its sublease to the Lessor or any subsequent purchaser of the Leased Property.

          SECTION 10.3 No Release. No assignment or sublease will discharge or diminish any of
the Lessee’s obligations hereunder, and the Lessee shall remain directly and primarily liable under
the Lease with respect to the Leased Property.

          SECTION 10.4 Leasehold Financing.

          (a) Notwithstanding anything contained in Section 10.1 above to the contrary, the
Lessee may, without the Lessor’s prior written consent, mortgage, pledge or collaterally assign all
of the Lessee’s right, title or interest in, to or under this Lease (each, an “Approved 

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Leasehold Financing”) to or for the benefit of the holders of the Subordinated Notes
and the holders of the Senior Notes (each, an “Approved Leasehold Mortgagee”). The Lessee
shall notify the Lessor promptly, and in any event within ten (10) days, of its entering into an
Approved Leasehold Financing, and shall provide the Lessor with copies of any and all documents
related to each such Approved Leasehold Financing.

          (b) In connection with an Approved Leasehold Financing, the Lessor covenants and agrees with
and for the benefit of the Approved Leasehold Mortgagee, subject to the terms of the Approved
Leasehold Financing, as follows:

     (i) Upon the occurrence of an Event of Default, the Lessor shall give written notice
thereof to the Approved Leasehold Mortgagee, and before the Lessor may exercise any remedies
hereunder as a result of such Event of Default, the Lessor shall provide the Approved
Leasehold Mortgagee with the right to cure such Event of Default for a period of thirty (30)
days after the Approved Leasehold Mortgagee’s receipt of such notice;

     (ii) Following the occurrence of an event of default and foreclosure under the Approved
Leasehold Financing, the Approved Leasehold Mortgagee may elect to exercise the Purchase
Option in accordance with the terms of Article XV;

     (iii) For so long as such Approved Leasehold Financing remains in effect, the economic
terms of this Lease may not be modified or amended without the prior written consent of the
Approved Leasehold Mortgagee;

     (iv) This Lease may be assigned by the Lessee to the Approved Leasehold Mortgagee
without the Lessor’s prior written consent; provided, however, in the event
of such assignment, the Lessor may, at its option, require the Approved Leasehold Mortgagee
to exercise the Purchase Option in accordance with the terms of Article XV; and

     (v) If this Lease terminates as a result of the Lessor exercising its remedies
hereunder following the occurrence of an Event of Default, upon the request of the Approved
Leasehold Mortgagee, the Lessor shall, within thirty (30) days of such termination, enter
into a new lease with the Approved Leasehold Mortgagee, upon substantially the same terms
and conditions as set forth herein, provided the Approved Leasehold Mortgagee has paid the
Lease Balance to the Lessor.

          (c) The Lessee acknowledges and agrees that an Approved Leasehold Financing shall encumber
only the Lessee’s right, title and interest in and to the Leased Property created by this Lease and
shall not in any way encumber the Lessor’s fee simple title to the Leased Property or affect the
Lessor’s right to receive any payments provided for under this Lease.

          SECTION 10.5 Transfer by Lessor. The Lessor shall have the right, without the consent
of the Lessee, to sell, transfer, assign, convey or mortgage all or any portion of its right, title
and interest in the Leased Property. If no Default or Event of Default shall have occurred and be
continuing, any such sale, transfer, assignment, conveyance or mortgage shall be made subject to
this Lease, and Lessee’s right of possession and other rights under this Lease,

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including the Lessee’s Purchase Option. At the request of the Lessor, the Lessee shall, at
the Lessee’s sole cost and expense, cooperate with the Lessor’s efforts to facilitate any such
sale, transfer, assignment, conveyance or mortgage transaction.

ARTICLE XI

LOSS, DESTRUCTION, CONDEMNATION OR DAMAGE

          SECTION 11.1 Event of Loss. Any single event (including a Release) affecting
Alterations to the Leased Property (i) which would otherwise constitute a Casualty, (ii) which (A)
in the good-faith judgment of the Lessee, renders repair and restoration of the Leased Property
impractical or uneconomical, or (B) requires in excess of $500,000 to remedy or repair, and (iii)
as to which the Lessee, within sixty (60) days after the occurrence of such event, delivers to the
Lessor an Officer’s Certificate notifying the Lessor of such event and of such judgment, shall
constitute an “Event of Loss”. Upon the occurrence of any Event of Loss or Casualty, the
Lessee shall promptly, and in any event within five (5) Business Days following the occurrence
thereof, deliver written notice describing the Event of Loss or Casualty to the Lessor. In the
case of any event (other than an Event of Loss) which constitutes a Casualty, the Lessee shall
restore and rebuild the Leased Property pursuant to Section 11.3. If an Event of Loss
other than an Event of Taking shall occur, the Lessee shall pay to the Lessor on the next Rent
Payment Date following delivery of the Officer’s Certificate pursuant to clause (iii) of the
preceding sentence an amount equal to the Lease Balance as of such date. Upon the Lessor’s receipt
of the Lease Balance on such date, the Lessor shall cause the Lessor’s interest in the Leased
Property to be conveyed to the Lessee in accordance with the Purchase Procedure as set forth in
Section 15.5 hereof. Upon completion of such purchase, including payment in full of the
Lease Balance, but not prior thereto, the Leased Property shall be deemed released from this Lease
and all obligations of the Lessee and the Lessor with respect to the Leased Property shall
terminate, except with respect to obligations, indemnities and liabilities hereunder, actual or
contingent, that have arisen or relate to events occurring on or prior to such date of purchase, or
which are expressly stated in Section 18.14 or elsewhere herein or the other Operative
Documents to survive termination of this Lease. Upon the consummation of the purchase of the
Leased Property pursuant to this Section 11.1, and the payment of the Lease Balance and all
other amounts owed to the Lessor, any proceeds derived from insurance maintained by the Lessee
pursuant to this Lease shall be paid over to, or retained by, the Lessee or as it may direct, and
the Lessor shall assign to the Lessee, without warranty, all of the Lessor’s rights to and interest
in the proceeds of insurance with respect to such Event of Loss required to be maintained by the
Lessee pursuant to this Lease.

          SECTION 11.2 Event of Taking. Any event which (a) constitutes a taking of title to
all or substantially all of the Leased Property (including, without limitation, any Appurtenances),
or (b) (i) would otherwise constitute a Condemnation of the Leased Property, (ii) that (A) either
(1) in the good-faith judgment of the Lessee, renders restoration and rebuilding of the Leased
Property impossible, impractical or uneconomical, or (2) involves a potential Award in excess of
$250,000 and (B) as to which the Lessee, within sixty (60) days after the occurrence of such event,
delivers to the Lessor an Officer’s Certificate notifying the Lessor of such event, of such
judgment and of the date (or the Lessee’s best estimate thereof) on which the Lessee shall be
required to relinquish possession of the Leased Property (or the affected portion thereof), shall
constitute an “Event of Taking”. Upon its receipt of any notice

16

 

from any Governmental Authority concerning any Condemnation, the Lessee shall promptly, and in
any event within five (5) Business Days following the receipt thereof, deliver a copy of such
notice to the Lessor. In the case of any event (other than an Event of Taking) which constitutes a
Condemnation, the Lessee shall restore and rebuild the Leased Property pursuant to Section
11.4. If an Event of Taking shall occur, the Lessee shall pay to the Lessor on the Rent
Payment Date next preceding the date on which the Lessee is required to relinquish possession of
the Leased Property (or the affected portion thereof), an amount equal to the Lease Balance. Upon
the Lessor’s receipt of the Lease Balance on such date, the Lessor shall cause the Lessor’s
interest in the Leased Property to be conveyed to the Lessee in accordance with and subject to the
Purchase Procedure as set forth in Section 15.5 hereof; provided, however,
that (A) such conveyance shall be free and clear of the Lessor Liens and the lien of the Operative
Documents, (B) such conveyance shall be subject to all rights of the condemning authority, (C) the
Lessor shall have no obligation to remove title defects other than the Lessor Liens and (D) the
Lessee’s ability to obtain a title insurance policy shall not affect the Lessee’s obligation to
purchase the Lessor’s interest in the Leased Property. Upon completion of such purchase, including
payment in full of the Lease Balance, but not prior thereto, the Leased Property shall be deemed
released from this Lease and all obligations of the Lessee and the Lessor under this Lease with
respect to the Leased Property shall terminate, except with respect to obligations, indemnities and
liabilities hereunder, actual or contingent, that have arisen or relate to events occurring on or
prior to such date of purchase, or which are expressly stated in Section 18.14 or elsewhere
herein or in the Operative Documents to survive termination of this Lease. Upon the payment of the
Lease Balance and the consummation of the purchase of the Leased Property pursuant to this
Section 11.2, the net amount of all Awards received by the Lessor, after deducting any
portion thereof applied to the payment of the Lease Balance, and any reasonable, documented and
unreimbursed costs incurred by the Lessor in collecting such Awards received or payable on account
of an Event of Taking during the Lease Term, shall be paid to the Lessee, and all rights of the
Lessor in Awards not then received shall be assigned to the Lessee, without warranty, by the
Lessor.

          SECTION 11.3 Casualty. Upon any Casualty during the Lease Term with respect to any
portion of any Alteration to the Leased Property which is not an Event of Loss, this Lease shall
remain in full force and effect, without any abatement or reduction of Rent. If the cost of repair
of such Casualty would exceed Two Hundred Fifty Thousand Dollars ($250,000), the Lessee shall give
to the Lessor written notice thereof. As soon as practicable after a Casualty, the Lessee, at its
sole cost and expense, shall repair and rebuild the affected portions of the Leased Property
suffering such Casualty (or cause such affected portions to be repaired and rebuilt) to the
condition required to be maintained by Section 7.1 hereof, whether or not insurance
proceeds are sufficient; provided, that the value and functional capability of such item as
restored is at least equivalent to the value and functional capability of such item as in effect
immediately prior to the occurrence of such Casualty (assuming such item was in the condition
required by this Lease). Insurance proceeds received with respect to any Casualty shall be held by
a creditworthy depository reasonably acceptable to the Lessor and the Lessee (which may be the Fee
Mortgagee, if applicable, provided the Fee Mortgagee is an institutional lender) and made available
to the Lessee to pay costs actually incurred by the Lessee to restore the Leased Property as
required herein and to comply with the provisions of Sections 7.1 and 7.2 hereof.

17

 

          SECTION 11.4 Condemnation. In case of a Condemnation or a requisition for temporary
use of all or a portion of the Leased Property, in either case, which is not an Event of Taking,
this Lease shall remain in full force and effect, without any abatement or reduction of Rent, and
the proceeds received from any Governmental Authority relating to a Condemnation for the affected
portion of the Leased Property shall, so long as no Default or Event of Default exists, be paid to
the Lessee. Notwithstanding anything herein to the contrary, any portion of such proceeds that is
awarded with respect to the time period after the expiration or termination of the Lease Term
(unless the Lessee shall have exercised an option to purchase the Leased Property and consummated
such purchase) shall be paid to the Lessor; provided, that if the Lessee has purchased the
Leased Property and the Lessor has received the full amount of the Lease Balance, such proceeds (or
the portion of such proceeds in excess of the portion thereof applied to the Lease Balance) shall
be paid over to the Lessee.

          SECTION 11.5 Verification of Restoration and Rebuilding. The Lessee will promptly
notify the Lessor of the completion of the restoration or rebuilding of the Leased Property, as
applicable, after a Casualty or Condemnation. After completion of such restoration and rebuilding
and in order to verify the Lessee’s compliance with the foregoing Sections 11.3 and
11.4, the Lessor and its representatives may, upon reasonable prior notice to the Lessee,
during normal business hours, inspect the Leased Property and the completion of the restoration and
rebuilding of the Leased Property, as applicable. All reasonable and documented out-of-pocket
costs of such inspection incurred by the Lessor will be paid by the Lessee promptly after written
request. No such inspection shall unreasonably interfere with the Lessee’s operations or the
operations of any other occupant of the Leased Property. None of the inspecting parties shall have
any duty to make any such inspection or inquiry and none of the inspecting parties shall incur any
liability or obligation by reason of not making any such inspection or inquiry. None of the
inspecting parties shall incur any liability or obligation by reason of making any such inspection
or inquiry unless and to the extent such inspecting party causes damage to the Leased Property or
any property of the Lessee or any other Person during the course of such inspection.

          SECTION 11.6 Application of Payments.

          (a) All proceeds (except for payments under insurance policies not required under Article
IX of this Lease) received at any time by the Lessor or the Lessee from any Governmental
Authority or other Person with respect to any Condemnation or Casualty to the Leased Property or
any part thereof or with respect to an Event of Loss or an Event of Taking, plus the amount of any
payment that would have been due from an insurer but for the Lessee’s deductibles (“Loss
Proceeds”), shall (except to the extent Section 11.9 applies) be applied as follows:

     (i) In the event the Lessee has purchased the Leased Property pursuant to Section
11.1 or Section 11.2 and the Lessor has received the full amount of the Lease
Balance, such Loss Proceeds shall be applied as set forth in Section 11.1 or
Section 11.2, as the case may be;

     (ii) In the event of a Casualty with respect to which the Lessee is obligated to repair
and rebuild the Leased Property pursuant to Section 11.3, the Loss Proceeds shall

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be deposited with a creditworthy depository reasonably acceptable to the Lessor and the
Lessee (which may be the Fee Mortgagee, if applicable, provided the Fee Mortgagee is an
institutional lender), and, so long as no Default or Event of Default has occurred or is
then continuing, such Loss Proceeds shall be made available to the Lessee as such repair and
restoration work progresses to pay the costs associated therewith, upon receipt by the
Lessor of certificates, bills, invoices and other evidence of such costs as the Lessor may
reasonably require. Any balance remaining after compliance with this Section
11.6(a)(ii) with respect to such Casualty shall be paid to the Lessee or to its Approved
Leasehold Mortgagee, provided that after the occurrence and during the continuance of a
Default or an Event of Default, such balance shall be paid to the Lessor for application to
the Lease Balance and all other amounts owing to the Lessor under the Operative Documents.
If a Default or Event of Default has occurred and is continuing, any amounts which otherwise
would have been made available to the Lessee hereunder shall be retained by the Lessor and
applied to payment of the Lease Balance and all other amounts owing to the Lessor under the
Operative Documents;

     (iii) In the event of a Condemnation with respect to which the Lessee is obligated to
repair and rebuild the Leased Property pursuant to Section 11.4, the Award shall be
deposited with a creditworthy depositary reasonably acceptable to the Lessor and the Lessee
(which may be the Fee Mortgagee, if applicable, provided the Fee Mortgagee is an
institutional lender), and so long as no Default or Event of Default has occurred and is
then continuing, such Award shall be made available to the Lessee as such repair and
restoration work progresses to pay the costs associated therewith, upon receipt by the
Lessor of certificates, bills, invoices and other evidence of such costs as the Lessor may
reasonably require. Any balance remaining after compliance with this Section
11.6(a)(iii) with respect to such Condemnation shall be paid to the Lessee or to its
Approved Leasehold Mortgagee, provided that after the occurrence and during the continuance
of a Default or an Event of Default, such balance shall be paid to the Lessor for
application to the Lease Balance. If a Default or Event of Default has occurred and is
continuing, any amounts which otherwise would be payable to the Lessee hereunder shall be
retained by the Lessor and applied to the payment of the Lease Balance and all other amounts
owing to the Lessor under the Operative Documents; and

     (iv) As provided in Section 11.8 if such Section is applicable.

          (b) During any period of repair or rebuilding pursuant to this Article XI, this Lease
will remain in full force and effect and Basic Rent and Supplemental Rent shall continue to accrue
and be payable without abatement or reduction. The Lessee shall maintain records setting forth
information relating to the receipt and application of payments in accordance with this Section
11.6. Such records shall be kept on file by the Lessee at its offices and shall be made
available to the Lessor upon request.

          SECTION 11.7 Prosecution of Awards.

          (a) If any Condemnation shall occur, the Lessee shall give to the Lessor promptly, but in any
event within five (5) Business Days after the occurrence of such Condemnation, written notice of
such occurrence and the date thereof, generally describing the

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nature and extent of such Condemnation. With respect to any Event of Taking or any
Condemnation, the Lessee and the Lessor shall jointly participate in the negotiations with the
relevant Governmental Authority as to the total amount of the Awards. To the extent there is a Fee
Mortgagee or an Approved Leasehold Mortgagee at the time of such Event of Taking or such
Condemnation, such Fee Mortgagee and/or such Approved Leasehold Mortgagee shall also be entitled to
participate with the Lessee and the Lessor in such negotiations.

          (b) Notwithstanding the foregoing, the Lessee may prosecute, and the Lessor shall have no
interest in, any claim with respect to the Lessee’s Personal Property, and the Lessee’s relocation
expenses and any other relocation benefits available to the Lessee under applicable law.

          SECTION 11.8 Application of Certain Payments Not Relating to an Event of Taking. In
case of a requisition for temporary use of all or a portion of the Leased Property which is not an
Event of Taking, this Lease shall remain in full force and effect, without any abatement or
reduction of Basic Rent, and unless a Default or an Event of Default has occurred and is
continuing, the Award attributable thereto shall be paid to the Lessee.

          SECTION 11.9 Other Dispositions. Notwithstanding the foregoing provisions of this
Article XI, upon the occurrence of any Default or Event of Default, any amount that would
otherwise be payable to or for the account of, or that would otherwise be retained by, the Lessee
pursuant to this Article XI shall be paid to, and retained by, the Lessor and applied to
the payment of the Lease Balance and all other amounts owing to the Lessor under the Operative
Documents.

          SECTION 11.10 No Rent Abatement. Rent shall not abate hereunder by reason of any
Casualty, any Event of Loss, any Event of Taking or any Condemnation, and the Lessee shall continue
to perform and fulfill all of the Lessee’s obligations, covenants and agreements hereunder
notwithstanding such Casualty, Event of Loss, Event of Taking or Condemnation until the Lease
Termination Date.

ARTICLE XII

NATURE OF TRANSACTION; INTEREST CONVEYED TO LESSEE

          (a) Intent of the Parties. The parties hereto intend that for all purposes, including
federal and all state and local income tax purposes, state property tax, transfer tax and
commercial law and bankruptcy purposes, (A) this Lease will be treated as a financing arrangement,
(B) the Lessor will be deemed to be making a loan to the Lessee in an aggregate amount equal to the
Lease Balance, which loan is secured by the Leased Property and (C) the Lessee will be treated as
the owner of the Leased Property and will be entitled to all tax benefits ordinarily available to
an owner of properties like the Leased Property for such tax purposes. Nevertheless, the Lessee
acknowledges and agrees that the Lessor has not made any representations or warranties to the
Lessee concerning the tax, accounting or legal characteristics of the Operative Documents and that
the Lessee has obtained and relied upon such tax, accounting and legal advice concerning the
Operative Documents as it deems appropriate. The parties hereto will not take any position
inconsistent with the intentions expressed herein.

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     It is the intent of the parties hereto that this Lease grants a security interest and deed of
trust lien, as the case may be, on the Leased Property to and for the benefit of the Lessor to
secure the Lessee’s performance under and payment of all amounts under this Lease and the other
Operative Documents.

          (b) Deed of Trust and Security Agreement. It is the intent of the parties hereto that
(i) the obligations of the Lessee under this Lease to pay Basic Rent and Supplemental Rent, and the
Lease Balance in connection with any purchase of the Leased Property, or as otherwise required
pursuant to this Lease, shall be treated as payments of interest on and principal of, respectively,
a loan to the Lessee in the amount of the Lease Balance, and (ii) this Lease shall be deemed to,
and does, constitute a deed of trust and security agreement, as more particularly set forth in the
Lease Supplement to be recorded in the Real Property Records, pursuant to which, in order to secure
payment of the aforesaid loan and all amounts advanced by the Lessor pursuant to the Operative
Documents, all other amounts payable hereunder and under the Operative Documents by the Lessee and
the performance by the Lessee of all of its covenants and obligations under this Lease and under
the Operative Documents, for and in consideration of the sum of One Dollar ($1.00) paid to the
Lessee, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Lessee does hereby grant, bargain, sell, convey, assign, transfer and set over to
the trustee named in the Lease Supplement, in trust, with the power of sale, for the benefit of the
Lessor, its successors and assigns, all of the Lessee’s present and future estate, right, title and
interest in and to the portions of the Leased Property which constitute interests in real property,
including all right, title and interest of the Lessee, if any, in and to the fee title to, and
reversionary interest in, the Leased Property, and a leasehold mortgage on the Lessee’s leasehold
estate under this Lease, and a security interest and lien on the portions of the Leased Property
which do not constitute interests in real property, and all proceeds of the conversion, voluntary
or involuntary, of any or all of the foregoing into cash, investments, securities or other
property, to have and to hold such interests in the Leased Property unto the Lessor, its successors
and assigns, forever, it being agreed that the provisions set forth in the Lease Supplement hereby
are entirely incorporated by reference with respect to the Leased Property with the same force and
effect as if set forth at length herein.

          (c) Nature of Transactions. Specifically, without limiting the generality of
subsections (a) and (b) of this Article XII, the Lessor and the Lessee intend and
agree that in the context of the exercise of remedies under the Operative Documents, and in the
event of any insolvency or receivership proceedings or a petition under the United States
bankruptcy laws or any other applicable insolvency laws or statutes of the United States of America
or any State or Commonwealth thereof affecting the Lessee, the Lessor or any other Person, or any
enforcement or collection actions, the transactions evidenced by this Lease and the other Operative
Documents is a loan in the amount of the Lease Balance made by the Lessor as an unrelated third
party lender to the Lessee, secured by the Leased Property (it being understood that the Lessee
hereby grants, bargains, sells, conveys, assigns, transfers and sets over to the trustee named in
the Lease Supplement, in trust, for the benefit of the Lessor, and grants a security interest in,
the Leased Property (consisting of a fee deed of trust with respect to all right, title and
interest of the Lessee in and to the fee title to, and reversionary interest in, the Leased
Property and consisting of a security agreement with respect to that portion of the Leased Property
constituting personal property and a deed of trust with respect to that portion of the Leased
Property constituting real property) and a deed of trust on the Lessee’s right, title, interest and
leasehold estate under this

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Lease and on the Lessee’s right, title and interest in and to the Leased Property, all to
secure such loan and all amounts due under the other Operative Documents, effective on the date
hereof, to have and to hold such interests in the Leased Property unto the Lessor and its
successors and assigns, forever, and all as more particularly set forth and provided for in the
Lease Supplement.

          (d) Security Agreement and Financing Statement. Specifically, but without limiting
the generality of subsections (a) and (b) of this Article XII, the Lessor and the
Lessee further intend and agree that, with respect to that portion of the Leased Property
constituting personal property, for the purpose of securing the Lessee’s obligations for the
repayment of the above-described loan and all other obligations of the Lessee under the Operative
Documents, (i) this Lease shall also be deemed to be a security agreement and financing statement
within the meaning of Article 9 of the Uniform Commercial Code; (ii) Lessee hereby grants, conveys,
assesses and transfers a lien and security interest in and, the conveyance provided for hereby
shall be deemed to be a grant by the Lessee to the Lessor of a lien and security interest in all of
the Lessee’s present and future right, title and interest in and to such portion of the Leased
Property, including but not limited to the Lessee’s leasehold estate therein and all proceeds 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 to secure
such loan, effective on the date hereof, to have and to hold such interests in the Leased Property
unto the Lessor and its successors and assigns forever; (iii) the possession by the Lessor of notes
and such other items of property as constitute instruments, money, negotiable documents or chattel
paper shall be deemed to be “possession by the secured party” for purposes of perfecting the
security interest pursuant to Section 9-313 of the Uniform Commercial Code; and (iv) notifications
to Persons holding such property, and acknowledgements, receipts or confirmations from financial
intermediaries, bankers or agents (as applicable) of the Lessee shall be deemed to have been given
for the purpose of perfecting such security interest under Applicable Law. The Lessor and the
Lessee shall, to the extent consistent with this Lease, take such actions and execute, deliver,
file and record such other documents, financing statements and deeds of trust, including, without
limitation, the Lease Supplement, as may be necessary to ensure that, if this Lease were deemed to
create a security interest in the Leased Property in accordance with this Article XII, such
security interest would be deemed to be a perfected security interest with priority over all Liens
other than Permitted Liens, under Applicable Law and will be maintained as such throughout the
Lease Term.

ARTICLE XIII

EVENTS OF DEFAULT

     The following events shall constitute Events of Default (whether any such event shall be
voluntary or involuntary or come about or be effected by operation of law or pursuant to or in
compliance with any judgment, decree or order of any court or any order, rule or regulation of any
Governmental Authority):

          (a) The Lessee shall fail to make any payment of Basic Rent when due hereunder;

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          (b) The Lessee shall fail to make any payment of Supplemental Rent when due and such failure
shall continue for a period of five (5) Business Days after written notice of non-payment is given
to the Lessee;

          (c) The Lessee shall fail to pay the Lease Balance when due under the Lease, including,
without limitation, pursuant to Sections 8.5(b), 11.1, 11.2 or Article
XV hereof;

          (d) The Lessee shall fail to deliver to the Lessor the insurance certificates required
pursuant to Section 9.3 hereof within ten (10) Business Days after the same are due or the
insurance required to be maintained pursuant to Article IX hereof shall lapse;

          (e) The Lessee shall fail to perform or observe any of its obligations under Article X
hereof (other than the failure to give notices of subleases and licenses entered into in accordance
with Section 10.2) or under Sections 5.1 or 5.10 of the Participation Agreement;

          (f) The Lessee shall fail to perform or observe any of its obligations under the Participation
Agreement (other than its obligations under Sections 5.1 or 5.10 thereof) or any of
the other Operative Documents and such failure shall continue for a period of twenty (20) days or
more after written notice is given to the Lessee;

          (g) (A) An involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Lessee or the Guarantor
or its or their debts, or of a substantial part of its assets, under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the Lessee or the Guarantor, or for a substantial part of its or their assets, and, in any such
case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or
decree providing or ordering any of the foregoing shall be entered; or (B) the Lessee or the
Guarantor thereof, shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in
clause (g)(A) of this Article, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the Lessee or the Guarantor,
or for a substantial part of its assets, (iv) file an answer admitting the material allegations of
a petition filed against it in any such proceeding, (v) make a general assignment for the benefit
of creditors or (vi) take any action for the purpose of effecting any of the foregoing; or (C) the
Lessee or the Guarantor shall become unable, admit in writing its inability or fail generally to
pay its debts as they become due;

          (h) Any representation or warranty made by or on behalf of the Lessee or the Guarantor in or
in connection with this Lease or any other Operative Document or any amendment or modification
hereof or thereof, or in any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Lease, any other Operative Document or any amendment or
modification hereof or thereof, shall prove to have been incorrect in any material respect when
made;

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          (i) The occurrence of any Event of Default under the Participation Agreement or any other
failure of the Lessee to perform or observe its obligations under any of the Operative Documents
after the expiration of any applicable notice or cure period (if any);

          (j) The Lessee shall fail to timely perform or observe any covenant, condition or agreement
(not included as an Event of Default in any other subsection of this Article) to be
performed or observed by it hereunder or under the other Operative Documents and such failure shall
continue for a period of thirty (30) days after the Lessee’s receipt of written notice thereof from
the Lessor (provided, however, if such failure is other than the payment of money
and is of such nature that it can be corrected but not within the applicable period, then that
failure shall not constitute an Event of Default so long as the Lessee institutes curative action
within the applicable period and diligently pursues that action to completion, but in no event for
a period longer than ninety (90) days from the date of notice thereof);

          (k) The occurrence of a “payment default” under the Senior Notes or the Subordinated Notes;

          (l) Any “default” or “event of default” or other similar occurrence shall have occurred after
the expiration of any applicable cure or notice periods under any other lease agreement between the
Lessor or any Affiliate of the Lessor and the Lessee or any Affiliate of the Lessee or the
Guarantor, but only to the extent the same results in the termination of such other lease
agreement;

          (m) A default occurs under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness of the Lessee, the Guarantor
or any of its Subsidiaries (or payment of which is guaranteed by the Lessee, the Guarantor or any
of its Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the
date of this Lease, or a default or early termination or other similar event occurs under a lease
agreement entered into in connection with a Contemplated Lease Financing, which default (i)
constitutes a failure to pay any portion of the principal of or a premium, if any, or interest on
such Indebtedness when due and payable after the expiration of any applicable grace period provided
in such Indebtedness on the date of such default (a “Payment Default”) or (ii) shall have
resulted in such Indebtedness being accelerated or otherwise becoming or being declared due and
payable prior to its stated maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness under which there
has been a Payment Default or the maturity of which has been so accelerated, aggregates $2,000,000
or more;

          (n) A final judgment or final judgments for the payment of money are entered by a court or
courts of competent jurisdiction against the Lessee, the Guarantor or any of its Subsidiaries and
such judgment or judgments remain unpaid and undischarged for a period (during which execution
shall not be effectively stayed) of 90 days, provided that the aggregate of all such undischarged
judgments exceeds $2,000,000;

          (o) If this Lease or any of the other Operative Documents or term or provision hereof or
thereof shall, in whole or in part, cease to be (or shall be claimed by any Person not to be) the
legal, valid, binding and enforceable obligations of the Lessee and in full force and effect,

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or the Lessee or any Affiliate thereof, in any capacity, directly or indirectly, shall purport
to terminate (except in accordance with the terms thereof), repudiate, declare voidable or void or
otherwise contest, this Lease or any other Operative Document to which it is a party or term or
provision hereof or thereof or any obligation or liability of Lessee in any capacity hereunder or
thereunder or the effectiveness, validity, binding nature or enforceability thereof; or the
security interests and liens securing the Lessee’s obligations under the Operative Documents, in
whole or in part, cease to be perfected first security interests and liens;

          (p) Any “default”, “event of default” or other similar occurrence shall have occurred after
the expiration of any applicable cure or notice periods under any loan agreement, credit agreement,
mortgage or other agreement between the Lessee, any Affiliate of the Lessee or the Guarantor, and
any Person, evidencing or securing any indebtedness relating to the Leased Property;

          (q) An ERISA event shall have occurred that, in the opinion of the Lessor, when taken together
with all other ERISA Events that have occurred, could reasonably be expected to result in liability
of the Lessee and its Subsidiaries and/or the Guarantor in an aggregate amount that could
reasonably be expected to result in a Material Adverse Effect; or

          (r) The Guarantor shall fail to pay or perform any of its obligations under the Guaranty.

ARTICLE XIV

ENFORCEMENT

          SECTION 14.1 Remedies. Upon the occurrence of any Event of Default of the type
described in clause (g) of Article XIII, the Lease Balance then outstanding, including,
without limitation, all accrued Basic Rent, Supplemental Rent and fees and other obligations of the
Lessee accrued under the Operative Documents, shall automatically become due and payable, without
presentment, demand, protest or other notice of an kind, all of which are hereby waived by the
Lessee. Upon the occurrence of any Event of Default other than an Event of Default of the type
described in clause (g) of Article XIII, and at any time thereafter during the
continuance of such event, the Lessor may, by notice to the Lessee, declare the Lease Balance then
outstanding to be due and payable in whole (or in part, in which case any portion of the Lease
Balance not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the Lease Balance (or the portion thereof so declared to be due and payable),
including, without limitation, all accrued Basic Rent, Supplemental Rent and all fees and other
obligations of the Lessee accrued under the Operative Documents, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Lessee. In addition, upon the occurrence of any Event of Default and at any
time thereafter, the Lessor may, so long as such Event of Default is continuing, do one or more of
the following, without limiting any other right or remedy that the Lessor may have on account of
such Event of Default (including, without limitation, accelerating and enforcing the obligation of
the Lessee to purchase the Leased Property as set forth in Sections 15.2 and 15.3):

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          (a) By notice to the Lessee, rescind or terminate this Lease as of the date specified in such
notice, which date shall, unless such notice is subsequently rescinded by the Lessor, become the
Lease Termination Date; provided, however, that (i) no reletting, reentry or taking
of possession of the Leased Property by the Lessor will be construed as an election on the part of
the Lessor to terminate this Lease unless written notice of such intention is given to the Lessee,
(ii) notwithstanding any reletting, reentry or taking of possession, the Lessor may at any time
thereafter elect to terminate this Lease for a continuing Event of Default, (iii) the Lessor shall
be under no obligation whatsoever to mitigate its damages hereunder but shall be entitled to
maintain an action for the payment in full of all amounts due hereunder (including but not limited
to payment of the Lease Balance, but subject to the terms and provisions of this Section
14.1), and (iv) no act or thing done by the Lessor or any of its agents, representatives or
employees and no agreement accepting a surrender of the Leased Property shall be valid unless the
same be made in writing and executed by the Lessor;

          (b) Without prejudice to any other remedy which the Lessor may have for possession of the
Leased Property, and to the extent and in the manner permitted by Applicable Law, enter upon the
Leased Property and take immediate possession of (to the exclusion of the Lessee) the Leased
Property or any part thereof and expel or remove the Lessee and any other Person who may be
occupying the Leased Property, by summary proceedings or otherwise by appropriate legal
proceedings, all without liability to the Lessee for or by reason of such entry or taking of
possession, whether for the restoration of damage to property caused by such taking or otherwise
and, in addition to the other damages of the Lessor, the Lessee shall be responsible for the
reasonable and documented costs and expenses of reletting, including brokers fees and the
reasonable and documented costs of any alterations or repairs made by the Lessor;

          (c) Pursuant to this Lease and the Lease Supplement, sell or cause to be sold all or any part
of the Leased Property at public or private sale, as the Lessor may determine, free and clear of
any rights of the Lessee and without any duty to account to the Lessee with respect to such action
or inaction or any proceeds with respect thereto (except as provided below), and if the Lessor
shall so elect, demand that the Lessee pay to the Lessor, and the Lessee shall pay to the Lessor,
on the date of such sale, as liquidated damages for loss of a bargain and not as a penalty (the
parties agreeing that actual damages would be difficult to predict, but the aforementioned
liquidated damages represent a reasonable approximation of such amount) (in lieu of Basic Rent due
for periods commencing on or after the Rent Payment Date coinciding with such date of sale (or, if
the sale date is not a Rent Payment Date, the Rent Payment Date next preceding the date of such
sale)), an amount equal to (A) the excess, if any, of (1) the sum of all Rent accrued and unpaid to
and including such Rent Payment Date plus an amount equal to the Lease Balance as of the date of
sale, over (2) the net proceeds of such sale, after deducting all costs and expenses incurred by
the Lessor incident to such sale, including, without limitation, all costs, expenses, fees,
premiums and taxes described in Section 15.5(c), plus (B) interest at the Overdue Rate on
the foregoing amount from the date of the applicable Event of Default until the date of payment.
Notwithstanding the foregoing, in the event the Lessor elects the foregoing remedy, the Lessor
shall, concurrent with the closing of the sale of the Leased Property (or any portion thereof), pay
to the Lessee or the party entitled thereto an amount equal to the excess, if any, of (i) the net
proceeds of such sale, after deducting all costs and expenses incurred by the Lessor incident to
such sale, including, without limitation, all costs, expenses, fees, premiums and taxes described
in Section 15.5(c), over (ii) the Lease Balance.

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          (d) Elect not to terminate this Lease, and continue to demand and collect all Basic Rent,
Supplemental Rent and all other amounts payable under this Lease (together with all costs of
collection) and enforce the Lessee’s obligations under this Lease as and when the same become due,
or are to be performed, and, upon any abandonment of the Leased Property by the Lessee and re-entry
of same by the Lessor, the Lessor may, in its sole and absolute discretion, elect not to terminate
this Lease and may make such alterations and repairs as shall be reasonable or necessary in the
judgment of the Lessor in order to relet the Leased Property, and relet the Leased Property or any
part thereof for such term or terms (which may be for a long term extending beyond the term of this
Lease) and at such rental or rentals and upon such other terms and conditions as the Lessor in its
reasonable discretion may deem advisable. Upon each such reletting all rentals actually received
by the Lessor from such reletting shall be applied to the Lessee’s obligations hereunder in such
order, proportion and priority as the Lessor may elect in its sole and absolute discretion, and if
such rentals received from such reletting during any Rent Period are less than the Rent to be paid
during that Rent Period by the Lessee hereunder, the Lessee shall pay any deficiency, as calculated
by the Lessor, to the Lessor on the Rent Payment Date in such Rent Period;

          (e) Unless the Leased Property has been sold in its entirety, and whether or not the Lessor
shall have exercised or shall thereafter at any time exercise any of its rights under
clauses (a), (b), (c) or (d) of this Article XIV,
the Lessor may demand, by written notice to the Lessee specifying a date not earlier than five (5)
Business Days following the date of such notice (the “Final Rent Payment Date”), that the
Lessee pay to the Lessor, and the Lessee shall pay to the Lessor, on such Final Rent Payment Date
as liquidated damages for loss of a bargain and not as a penalty (the parties agreeing that actual
damages would be difficult to predict, but the aforementioned liquidated damages represent a
reasonable approximation of such amount) in lieu of Basic Rent due for periods commencing on or
after such Final Payment Date, an amount equal to the sum of all Rent accrued and unpaid to and
including such Final Payment Date, plus an amount equal to the Lease Balance as of such Final
Payment Date, including, without limitation, all costs and expenses incurred by the Lessor, plus
interest at the Overdue Rate on the foregoing amount from the date of the applicable Event of
Default until the date of payment, and upon payment of the aggregate total of such amounts, the
Lessor shall convey the Leased Property to the Lessee by quit claim deed pursuant to the provisions
of Section 15.2 and Section 15.5 hereof;

          (f) Exercise any other right or remedy that may be available under Applicable Law, or proceed
by appropriate court action (legal or equitable) to enforce the terms hereof or to recover damages
for the breach hereof. Separate suits may be brought to collect any such damages for any Rent
Period(s), and such suits shall not in any manner prejudice the right of the Lessor to collect any
such damages for any subsequent Rent Period(s), or the Lessor may defer any such suit until after
the expiration of the Lease Term, in which event such suit shall be deemed not to have accrued
until the expiration of the Lease Term;

          (g) Retain and apply against the damages of the Lessor all sums which the Lessor would, absent
such Event of Default, be required to pay, or turn over, to the Lessee pursuant to the terms of
this Lease; and

27

 

          (h) Notwithstanding anything set forth in this Lease or any of the other Operative Documents
to the contrary, following the occurrence and during the continuance of any Event of Default
(provided that the Leased Property in its entirety has not been sold pursuant to the exercise of
remedies under this Lease or any of the other Operative Documents), upon the payment to the Lessor
of the Lease Balance and all other amounts owing to the Lessor under the Operative Documents, the
Lessee shall be deemed to have exercised its option to purchase the Leased Property pursuant to
Section 15.3 hereof, and the Lessor shall cause the interest of the Lessor in the Leased
Property to be conveyed to the Lessee in accordance with and subject to the Purchase Procedure set
forth in Section 15.5 hereof, by quitclaim deed.

          (i) All costs and expenses incurred by the Lessor in connection with the exercise of remedies
pursuant to the Operative Documents shall be payable by the Lessee upon demand.

          SECTION 14.2 Remedies Cumulative; No Waiver; Consents. Each and every right, power
and remedy herein specifically given to the Lessor in this Lease shall be cumulative and shall be
in addition to every other right, power and remedy herein specifically given or now or hereafter
existing at law, in equity or by statute, and each and every right, power and remedy whether
specifically herein given or otherwise existing may be exercised from time to time and as often and
in such order as is determined by the Lessor, and the exercise or the beginning of the exercise of
any power or remedy shall not be construed to be a waiver of the right to exercise at the same time
or thereafter any right, power or remedy. No delay or omission by the Lessor in the exercise of
any right, power or remedy or in the pursuit of any remedy shall impair any such right, power or
remedy or be construed to be a waiver of any default on the part of the Lessee or to be an
acquiescence therein. The consent of the Lessor to any request made by the Lessee shall not be
deemed to constitute or preclude the necessity for obtaining the consent of the Lessor in the
future, to all similar requests. No express or implied waiver by the Lessor of any Default or
Event of Default shall in any way be, or be construed to be, a waiver of any future Default or
Event of Default. To the extent permitted by Applicable Law, the Lessee hereby waives any rights
now or hereafter conferred by statute or otherwise that may require the Lessor to sell, lease or
otherwise use the Leased Property or part thereof in mitigation of any damages of the Lessor upon
the occurrence of a Default or Event of Default or that may otherwise limit or modify any of the
rights or remedies of the Lessor under this Article.

ARTICLE XV

PURCHASE OF LEASED PROPERTY

          SECTION 15.1 The Lessee’s Option to Purchase. Subject to the terms and conditions and
provisions set forth in this Article XV, the Lessee shall have the option (the
“Purchase Option”), exercisable at any time during the Lease Term, to purchase from the
Lessor all, but not less than all, of the Lessor’s interest in the Leased Property at the purchase
price equal to the Purchase Option Price. Such option must be exercised by written notice to the
Lessor, which exercise shall be irrevocable, and such notice shall specify the closing date for the
Lessee’s purchase of the Leased Property, which date shall be (i) not less than twenty (20)
calendar days following the date of such notice and (ii) in any event not later than the Lease
Termination Date. If the Purchase Option is exercised pursuant to the foregoing, then, subject to
the provisions set forth in this Article XV, on such closing date, the Lessor shall convey
to the

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Lessee, and the Lessee shall purchase from the Lessor, the Lessor’s interest in all, but not
less than all, of the Leased Property in accordance with the Purchase Procedure as set forth in
Section 15.5.

          SECTION 15.2 Purchase Obligation.

          (a) Unless the Lessee shall have properly exercised the Purchase Option and purchased all of
the Leased Property pursuant thereto, then, subject to the terms, conditions and provisions
set forth in this Article XV, the Lessee shall purchase from the Lessor for a purchase
price equal to the Lease Balance, and the Lessor shall convey to the Lessee, on the Lease
Termination Date, the Lessor’s entire interest in all, but not less than all, of the Leased
Property in accordance with the Purchase Procedure set forth in Section 15.5. The Lessee
may designate, in a notice given to the Lessor not less than ten (10) Business Days prior to the
closing of such purchase (time being of the essence), the transferee to whom the conveyance shall
be made (if other than to the Lessee), in which case such conveyance shall (subject to the terms
and conditions set forth herein) be made to such designee; provided, however, that
such designation of a transferee shall not cause the Lessee to be released, fully or partially,
from any of its obligations under this Lease or the other Operative Documents.

          (b) If the Lessee fails to purchase the Leased Property as provided in Section
15(a) above, the Lessee’s right to purchase the Leased Property pursuant to Section
15(a) shall terminate, and the Lessor shall have the unrestricted right, in addition to and not
in lieu of any other remedies available to the Lessor under Article XIV as a result of such
failure, to sell the Leased Property to a third party in full or partial satisfaction of the
Lessee’s obligations under this Lease. In the event the Lessor elects to sell the Leased Property
to a third party as provided herein, the Lessee shall continue to be liable to the Lessor for an
amount (the “Lessee’s Net Payment”) equal to the difference between (i) the net proceeds
from the sale of the Leased Property, after first deducting therefrom all costs and expenses
incurred by the Lessor incident to such sale, including, without limitation, all costs, expenses,
fees, premiums and taxes described in Section 15.5(c) (the “Sales Proceeds”), and
(ii) the Lease Balance, plus any and all other sums due and owing from the Lessee pursuant to this
Lease and the other Operative Documents (collectively, the “Outstanding Lease
Obligations”). The Lessor shall have the right to demand payment of the Lessee’s Net Payment
from the Lessee at any time following the Lease Termination Date, and the Lessee shall make such
payment to the Lessor within five (5) Business Days of the Lessee’s receipt of such demand. In the
event the Lessor demands payment of the Lessee’s Net Payment prior to the sale of the Leased
Property to a third party, then for purposes of calculating the Lessee’s Net Payment, the Sales
Proceeds shall be deemed to equal the Fair Market Sales Value of the Leased Property. Upon the
closing of the sale of the Leased Property, if the Sales Proceeds (plus the Lessee’s Net Payment,
if previously paid by the Lessee prior to the sale of the Leased Property) exceed the Outstanding
Lease Obligations, such excess shall be paid by the Lessor to the Lessee within five (5) Business
Days of such closing, and, if the Outstanding Lease Obligations exceed the Sales Proceeds (plus the
Lessee’s Net Payment, if previously paid by the Lessee prior to the sale of the Leased Property),
such excess shall be paid by the Lessee to the Lessor within five (5) Business Days of such
closing.

29

 

          SECTION 15.3 Purchase Upon Event of Default. Upon the occurrence of any Event of
Default, (i) the Lessor shall have the right, upon twenty (20) days prior written notice to the
Lessee, to require the Lessee to purchase the Lessor’s entire interest in all, but not less than
all, of the Leased Property, for a purchase price equal to the Lease Balance, and (ii) the Lessee
shall have the right, upon twenty (20) days prior written notice to the Lessor, to purchase the
Lessor’s entire interest in all, but not less than all, of the Leased Property, for a purchase
price equal to the Lease Balance. If the Lessee purchases the Leased Property in accordance with
this Section 15.3, the Lessor shall convey the Leased Property to the Lessee (or its
designee) in accordance with the Purchase Procedure set forth in Section 15.5.

          SECTION 15.4 INTENTIONALLY OMITTED.

          SECTION 15.5 Purchase Procedure. The provisions of this Section 15.5 are
herein and elsewhere in the Operative Documents sometimes referred to as the “Purchase
Procedure”.

          (a) If the Lessee shall purchase the Lessor’s interest in the Leased Property pursuant to any
provision of this Lease, (i) the Lessee shall accept from the Lessor, and the Lessor shall convey
to the Lessee (or its designee), the Lessor’s entire interest in the Leased Property, (ii) upon the
date fixed for any purchase of the Lessor’s interest in the Leased Property hereunder, the Lessee
shall pay to the order of the Lessor the Lease Balance by wire transfer of federal funds and (iii)
the Lessor shall convey to the Lessee the Lessor’s entire interest in the Leased Property by
quitclaim deed, together with such bills of sale and other instruments (including, without
limitation, a quitclaim deed to any Alterations) as may be necessary to transfer all of the
Lessor’s interest in the Leased Property. THE LESSOR’S TRANSFER OF ITS OWNERSHIP INTEREST IN THE
LEASED PROPERTY SHALL BE ON AN AS-IS, WHERE-IS, BASIS, WITHOUT ANY REPRESENTATION OR WARRANTY,
EITHER EXPRESS OR IMPLIED, AS TO DESIGN, CONDITION, QUALITY, CAPACITY, MERCHANTABILITY,
HABITABILITY, DURABILITY, SUITABILITY OR FITNESS OF THE LEASED PROPERTY FOR A PARTICULAR PURPOSE,
OR ANY OTHER MATTER CONCERNING THE LEASED PROPERTY OR ANY PORTION THEREOF. THE LESSEE HEREBY
WAIVES ANY CLAIM (INCLUDING ANY CLAIM BASED ON STRICT OR ABSOLUTE LIABILITY IN TORT OR
INFRINGEMENT) IT MIGHT HAVE AGAINST THE LESSOR FOR ANY LOSS, DAMAGE (INCLUDING INCIDENTAL OR
CONSEQUENTIAL DAMAGE) OR EXPENSE CAUSED BY THE LEASED PROPERTY OR BY THE LESSEE’S LOSS OF USE
THEREOF FOR ANY REASON WHATSOEVER. NO REPRESENTATION OR WARRANTY SHALL BE MADE BY THE LESSOR AS TO
THE EXISTENCE OF ANY LIENS OR ENCUMBRANCES (EXCEPT FOR LESSOR LIENS OTHER THAN PERMITTED LIENS) ON
THE LEASED PROPERTY AS OF THE DATE OF SUCH SALE. In connection with, and as a condition to, any
such transfer by the Lessor, the Lessee shall pay all charges and expenses incident to such
transfer of the Leased Property, including, without limitation, all transfer taxes, recording fees,
title insurance premiums, and federal, state and local taxes arising as a result of such transfer,
and all fees and expenses of legal counsel of the Lessor reasonably incurred by reason of such
transfer.

          (b) The Lessee shall, at the Lessee’s sole cost and expense, obtain all required governmental
and regulatory approval and consents and shall make such filings as required by

30

 

Applicable Law. In the event that the Lessor is requested and/or required by Applicable Law
to take any action in connection with such purchase and sale, the Lessee shall pay all costs
incurred by the Lessor in connection therewith. In addition, all charges incident to such
conveyance, including, without limitation, the Lessee’s attorneys’ fees, the reasonable attorneys’
fees of the Lessor, any brokerage commissions, all escrow fees, recording fees, title insurance
premiums and all applicable documentary transfer or other transfer taxes and other taxes required
to be paid in order to record the transfer documents that might be imposed by reason of such
conveyance and the delivery of such deed shall be borne entirely and paid by the Lessee.

          (c) Upon expiration or termination of this Lease resulting in conveyance of the Lessor’s
interest in the title to the Leased Property to the Lessee, the Lessor shall not be required to
make any apportionment of taxes, insurance, utility charges or other charges payable with respect
to the Leased Property, all of such taxes, insurance, utility or other charges due and payable with
respect to the Leased Property prior to termination being payable by the Lessee hereunder and all
due after such time being payable by the Lessee as then owner of the Leased Property.

          SECTION 15.6 Effect of Conveyance to the Lessee. Upon conveyance by the Lessor to the
Lessee of the Lessor’s interest in the Leased Property pursuant to this Article XV, the
payment in full of the Lease Balance and the payment and performance of all of the obligations of
the Lessee due and owing under this Lease and all of the other Operative Documents, this Lease
shall, subject to the terms of Section 18.14 hereof, terminate as to the Leased Property.

ARTICLE XVI

LESSEE’S PERSONAL PROPERTY

     The Lessee may, from time to time, own or hold under lease from Persons other than the Lessor,
furniture, trade fixtures and equipment which is located on or about the Leased Property
(collectively, the “Lessee’s Personal Property”). Except as expressly provided in this
Article XVI, the Lessor waives any statutory and/or contractual lien on the Lessee’s
Personal Property as security for this Lease. At any time during the Lease Term and upon the
expiration or earlier termination of this Lease, the Lessee may, at its sole cost and expense,
remove any or all of the Lessee’s Personal Property from the Leased Property; provided,
however, that the Lessee shall not remove, and the Lessor shall have a lien upon any
fixture, equipment or other personal property which has been incorporated in the Leased Property.
Any of the Lessee’s Personal Property remaining on the Leased Property following the expiration or
earlier termination of this Lease shall be considered abandoned by the Lessee, and, at the election
of the Lessor, title thereto shall without further act vest in the Lessor, and may be appropriated,
sold, destroyed or otherwise disposed of by the Lessor without notice to the Lessee and without
obligation to account therefor and the Lessee will pay the Lessor, upon written demand, all
reasonable and documented costs and expenses incurred by the Lessor in removing, storing or
disposing of the same and all costs and expenses incurred to repair any damage to the Leased
Property caused by such removal. The Lessee shall immediately repair at its expense all damage to
the Leased Property caused by any such removal (unless such removal is effected by the Lessor, in
which event the Lessee shall pay all costs and expenses incurred by the Lessor for such repairs).
The Lessor shall have no liability in exercising its rights under this Article XVI, nor
shall the Lessor be responsible for any loss of or damage to the Lessee’s Personal Property in connection
therewith.

31

 

ARTICLE XVII

RIGHT TO PERFORM FOR LESSEE

     If the Lessee shall fail to perform or comply with any of its agreements contained herein, and
such failure to perform continues beyond any applicable notice and cure periods, the Lessor may,
without prior notice to the Lessee, perform or comply with such agreement, and the Lessor shall not
thereby be deemed to have waived any Default or Event of Default caused by such failure, and the
amount of such payment and the amount of the expenses of the Lessor (including reasonable
attorney’s fees and expenses) incurred in connection with such payment or the performance of or
compliance with such agreement, as the case may be, shall be deemed Supplemental Rent, payable by
the Lessee to the Lessor, with interest at the Overdue Rate from the date of such action by the
Lessor.

ARTICLE XVIII

MISCELLANEOUS

          SECTION 18.1 Binding Effect; Successors and Assigns; Survival. The terms and
provisions of this Lease, and the respective rights and obligations of the parties hereunder, shall
be binding upon their respective permitted successors, legal representatives and assigns
(including, in the case of the Lessor, any Person to whom the Lessor may transfer the Leased
Property or any interest therein in accordance with the provisions of the Operative Documents), and
inure to the benefit of their respective permitted successors and assigns.

          SECTION 18.2 Notices. Unless otherwise specified herein, all notices, offers,
acceptances, rejections, consents, requests, demands or other communications to or upon the
respective parties hereto shall be in accordance with Section 8.2 of the Participation
Agreement.

          SECTION 18.3 Severability. Any provision of this Lease that shall be 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, and the Lessee shall remain liable to
perform its obligations hereunder except to the extent of such unenforceability. To the extent
permitted by Applicable Law, the parties hereby waive any provision of law that renders any
provision hereof prohibited or unenforceable in any respect.

          SECTION 18.4 Amendment; Complete Agreements. Neither this Lease nor any of the terms
hereof may be terminated, amended, supplemented, waived or modified orally, but only by an
instrument in writing signed by the party against which the enforcement of the termination,
amendment, supplement, waiver or modification shall be sought. This Lease, together with the other
Operative Documents, is intended by the parties as a final expression of their agreement and as a
complete and exclusive statement of the terms thereof, all negotiations, considerations and
representations between the parties having been incorporated herein and

32

 

therein. No course of prior dealings between the parties or their officers, employees, agents
or Affiliates shall be relevant or admissible to supplement, explain, or vary any of the terms of
this Lease or any other Operative Document. Acceptance of, or acquiescence in, a course of
performance rendered under this or any prior agreement between the parties or their Affiliates
shall not be relevant or admissible to determine the meaning of any of the terms of this Lease or
any other Operative Document. No representations, undertakings, or agreements have been made or
relied upon in the making of this Lease other than those specifically set forth in the Operative
Documents.

          SECTION 18.5 Construction. This Lease shall not be construed more strictly against
any one party, it being recognized that both of the parties hereto have contributed substantially
and materially to the preparation and negotiation of this Lease.

          SECTION 18.6 Headings. The Table of Contents and headings of the various Articles and
Sections of this Lease are for convenience of reference only and shall not modify, define or limit
any of the terms or provisions hereof.

          SECTION 18.7 Counterparts. This Lease may be executed in any number of counterparts
as may be convenient or necessary, and it shall not be necessary that the signatures of all parties
hereto or thereto be contained on any one counterpart hereof or thereof. Additionally, the parties
hereto agree that for purposes of facilitating the execution of this Lease, (a) the signature pages
taken from the separate individually executed counterparts of this Lease may be combined to form
multiple fully executed counterparts and (b) a facsimile transmission shall be deemed to be an
original signature for all purposes. All executed counterparts of this Lease shall be deemed to be
originals, but all such counterparts taken together or collectively, as the case may be, shall
constitute one and the same agreement.

          SECTION 18.8 Governing Law. THIS LEASE SHALL IN ALL RESPECTS BE GOVERNED BY THE
INTERNAL LAW OF THE STATE OF NEW YORK AS TO ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES TO THE EXTENT PERMITTED BY APPLICABLE LAW, EXCEPT
TITLE 14 OF ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW, EXCEPT AS TO MATTERS RELATING TO THE
CREATION OF LEASEHOLD ESTATES, LIENS AND THE EXERCISE OF RIGHTS AND REMEDIES WITH RESPECT TO THE
LEASED PROPERTY, WHICH SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
IN WHICH THE LEASED PROPERTY IS LOCATED.

          SECTION 18.9 Liability of the Lessor Limited. It is expressly understood and agreed
by and between the Lessee, the Lessor and their respective successors and assigns that, except as
expressly set forth herein, nothing herein contained shall be deemed to be a personal covenant,
stipulation, obligation or agreement of any present or future member, officer, agent or employee of
the Lessor in other than his official capacity, and no officer, agent or employee of the Lessor
shall be subject to any personal liability or accountability by reason of the stipulations,
obligations or agreements contained in this Lease. Any obligation of the Lessor created by or
arising out of this Lease other than the Lessor’s obligations under Article XV shall never
constitute a general debt of the Lessor but shall be payable solely out of Rent and the

33

 

liability of the Lessor hereunder shall be limited to, the right, title and interest of the
Lessor in the Leased Property, any proceeds from the Lessor’s sale or encumbrance thereof, and any
Awards or Loss Proceeds (provided, however, that the Lessee shall not be entitled
to any double recovery) for the performance of any obligation under this Lease and under the
Operative Documents and the satisfaction of any liability arising therefrom.

          SECTION 18.10 Estoppel Certificates. Each party hereto agrees that at any time and
from time to time during the Lease Term, it will promptly, but in no event later than fifteen (15)
days after request by the other party hereto, execute, acknowledge and deliver to such other party
or to any prospective purchaser (if such prospective purchaser has signed a commitment or letter of
intent to purchase the Leased Property or any part thereof), assignee or mortgagee or third party
designated by such other party, a certificate stating (i) that this Lease is unmodified and in
force and effect (or if there have been modifications, that this Lease is in force and effect as
modified, and identifying the modification agreements), (ii) the date to which Basic Rent has been
paid, (iii) whether or not there is any existing default by the Lessee in the payment of Basic Rent
or any Supplemental Rent, and whether or not there is any other existing default by either party
with respect to which a notice of default has been served, and, if there is any such default,
specifying the nature and extent thereof, (iv) whether or not, to the knowledge of the signer,
there are any setoffs, defenses or counterclaims against enforcement of the obligations to be
performed hereunder existing in favor of the party executing such certificate and (v) other matters
concerning the status of this Lease and of any of the Operative Documents to which the Lessee is a
party that may be reasonably requested; provided, however, that no such certificate
may be requested unless the requesting party has a good faith reason for such request.

          SECTION 18.11 No Joint Venture. Any intention to create a joint venture or
partnership relation between the Lessor and the Lessee is hereby expressly disclaimed.

          SECTION 18.12 No Accord and Satisfaction. The acceptance by the Lessor of any sums
from the Lessee (whether as Basic Rent or otherwise) in amounts which are less than the amounts due
and payable by the Lessee hereunder is not intended, nor shall any such acceptance be construed, to
constitute an accord and satisfaction of any dispute between the Lessor and the Lessee regarding
sums due and payable by the Lessee hereunder, unless the Lessor specifically deems it as such in
writing.

          SECTION 18.13 No Merger. In no event shall the leasehold interests, estates or rights
of the Lessee hereunder merge with any interests, estates or rights of the Lessor in or to the
Leased Property, it being understood that such leasehold interests, estates and rights of the
Lessee hereunder shall be deemed to be separate and distinct from the Lessor’s interests, estates
and rights in or to the Leased Property, notwithstanding that any such interests, estates or rights
shall at any time or times be held by or vested in the same person, corporation or other entity.

          SECTION 18.14 Survival. The obligations of the Lessee to be performed under this
Lease prior to the Lease Termination Date and the obligations of the Lessee pursuant to Article
IV, Section 8.4, Section 8.5, Articles XI, XII, and
XIV, Sections 15.2, 15.3, and 15.5, and Articles XVI and
XVII, and obligations of the Lessee to pay or reimburse the Lessor for expenses or costs or
for indemnification, shall survive the expiration or termination of this Lease.

34

 

The extension of any applicable statute of limitations by the Lessor, the Lessee or any
Indemnitee shall not affect such survival.

          SECTION 18.15 Chattel Paper. To the extent that this Lease constitutes chattel paper
(as such term is defined in the Uniform Commercial Code in any applicable jurisdiction), no
security interest in this Lease may be created through the transfer or possession of any
counterpart other than the original counterpart, which shall be identified as the original
counterpart by the receipt of the Lessor on its signature page.

          SECTION 18.16 Time of Essence. Time is of the essence of this Lease.

          SECTION 18.17 Recordation of Lease Supplement. The Lessee will, at its sole cost and
expense, cause the Lease Supplement to be recorded in the Real Property Records. Upon termination
of this Lease in accordance with its terms, except as the result of an Event of Default, the Lessor
agrees to execute and deliver such documents as may be reasonably be requested by the Lessee to
release such instruments of record.

          SECTION 18.18 Security Funds. Any amounts not payable to the Lessee (including
amounts paid to or retained by the Lessor), pursuant to any provision of Article IX,
XI or XV or other provisions of the Operative Documents or this Section as a result
of the occurrence of a Default or an Event of Default, shall be held by the Lessor as security for
the obligations of the Lessee under this Lease and the other Operative Documents. At such time as
no Default or Event of Default shall be continuing, such amounts, net of any amounts previously
applied to the Lessee’s obligations hereunder or under the other Operative Documents, shall be paid
to the Lessee. Any such amounts which are held by the Lessor pending application as provided
herein and in the other Operative Documents against the Lessee’s obligations herein and under the
Operative Documents or in connection with any exercise of remedies hereunder or thereunder need not
be invested but, if invested, may be invested as the Lessor may determine in its sole and absolute
discretion. Any gain (including interest received) realized as the result of any such investment
(net of any fees, commissions and other expenses, if any, incurred in connection with such
investment) shall be applied in the same manner as the principal invested.

          SECTION 18.19 No Illegal Interest to be Charged. All agreements between the Lessee
and the Lessor under this Lease and the other Operative Documents are expressly limited so that in
no contingency or event whatsoever shall the amount paid or agreed to be paid to the Lessor or its
successors or assigns for the use, forbearance or detention of the money to be advanced to the
Lessee exceed the highest rate permissible under law applicable thereto by a court of competent
jurisdiction. If, from any circumstances whatever, fulfillment of any provisions of this Lease or
any of the Operative Documents at the time performance of such provision shall be due, shall
involve payment of interest at a rate that exceeds the highest lawful rate as so determined, then
ipso facto the obligation to be fulfilled shall be reduced to such highest lawful rate. If from
any circumstances whatsoever, the Lessor or its successors or assigns shall ever receive interest,
the amount of which would exceed such highest lawful rate, the portion thereof that would be
excessive interest shall be applied to the reduction of the unpaid Basic Rent; provided,
however, that nothing contained herein, in the Participation Agreement, this Lease or any
of the Operative Documents shall be deemed to create a defense, contractual or otherwise, to any
sums due or to become due or coming due under this Lease, the Participation

35

 

Agreement or any of the Operative Documents where no such defense exists at law, as for
example, where corporations are barred from asserting the defense of usury or in a case wherein no
limit exists upon the rate of interest that may be charged.

          SECTION 18.20 Submission to Jurisdiction; Waivers. Each party hereto hereby
irrevocably and unconditionally (i) submits for itself and its property in any legal action or
proceeding relating to this Lease or any other Operative Document, or for recognition and
enforcement of any judgment in respect thereof, to the jurisdiction of the United States District
Court for the Southern District of New York and of any New York state court sitting in the borough
of Manhattan, and appellate courts from any thereof, (ii) consents that any such action or
proceedings may be brought to such courts, and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any court or that such action or proceeding
was brought in an inconvenient court and agrees not to plead or claim the same, (iii) agrees that
service of process in any such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage prepaid, to such
party at its address set forth in Section 8.2 of the Participation Agreement or such other
address of which the other parties hereto shall have been notified pursuant to said Section
8.2 and (iv) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by Applicable Law. EACH PARTY, TO THE EXTENT PERMITTED BY LAW, HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG OR BETWEEN THE PARTIES HERETO
ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THE PARTIES IN CONNECTION WITH THIS LEASE, ANY OTHER OPERATIVE DOCUMENT OR ANY OTHER DOCUMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO. THIS WAIVER SHALL
NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY THE LESSOR’S ABILITY TO PURSUE ANY REMEDIES
CONTAINED IN THIS LEASE, THE OTHER OPERATIVE DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT RELATED
HERETO. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY AND BETWEEN THE LESSEE AND THE LESSOR AND THEIR
RESPECTIVE SUCCESSORS AND ASSIGNS THAT NOTHING HEREIN CONTAINED SHALL BE DEEMED TO BE A COVENANT,
STIPULATION, OBLIGATION OR AGREEMENT OF ANY PRESENT OR FUTURE MEMBER, OFFICER, AGENT, OR EMPLOYEE
OF THE LESSOR IN OTHER THAN HIS OFFICIAL CAPACITY, AND NO OFFICER, AGENT OR EMPLOYEE OF THE LESSOR
SHALL BE SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF THE STIPULATIONS,
OBLIGATIONS OR AGREEMENTS CONTAINED IN THIS LEASE.

36

 

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

	 	 	 	 	 
	LESSEE: 	NAP OF THE CAPITAL REGION, LLC,

a Florida limited liability company

 	 
	 	 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	By:  	                   Terremark Worldwide, Inc.
 	 
	 	 	Its: Sole Member 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                                            /s/ Jose Segrera
 	 
	 	 	Name:  	Jose Segrera 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	LESSOR: 	CULPEPER LESSOR 2007-1 LLC,

a Delaware limited liability company

 	 
	 	 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	By:  	             Credit Suisse Management LLC
 	 
	 	 	Its: Sole Member 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	            /s/ Damien Dwin
 	 
	 	 	Name:  	Damien Dwin 	 
	 	 	Title:  	Vice President 	 

S-1

 

	 	 	 	 	 

APPENDIX I

TO

PARTICIPATION AGREEMENT, LEASE AGREEMENT

AND OTHER OPERATIVE DOCUMENTS

DEFINITIONS AND INTERPRETATION

[See separate text]

I-1

 

APPENDIX II

DESCRIPTION OF LEASED PROPERTY

I. Land: See Exhibit A attached, together with all Appurtenances.

II. Improvements:

Any and all buildings, structures and improvements hereafter erected on the Land by the
Lessee in connection with the making of any Alterations by the Lessee, together with all
fixtures, fittings, apparatus, furnishings and equipment constituting a part thereof or
incorporated therein, including, without limitation, all heating, electrical, lighting,
power, plumbing, air conditioning and ventilation equipment and all replacements of and
substitutions for any of the foregoing, but excluding the Lessee’s Personal Property, except
as expressly set forth in the Lease to which this Appendix II is appended.

II-1

 

EXHIBIT A

LEGAL DESCRIPTION OF LAND

PARCEL I:

ALL THAT CERTAIN LOT OR PARCEL OF LAND TOGETHER WITH ALL BUILDINGS AND IMPROVEMENTS THEREON AND
PRIVILEGES AND APPURTENANCES THEREUNTO BELONGING, SITUATED, LYING AND BEING ON THE NORTH SIDE OF
U.S. ROUTE 29 BY-PASS IN STEVENSBURG MAGISTERIAL DISTRICT, CULPEPER COUNTY, VIRGINIA, AND BY A
SURVEY OF JOHN R. HUDSON, CLS, DATED SEPTEMBER 5, 1979, RECORDED IN DEED BOOK 291 AT PAGE 232, SAID
LOT CONTAINS 10.0000 ACRES AND IS MORE FULLY DESCRIBED BY METES AND BOUNDS THEREON.

PARCEL II:

(a) ALL THAT CERTAIN LOT OR PARCEL OF LAND, TOGETHER WITH ALL BUILDINGS AND IMPROVEMENTS THEREON
AND PRIVILEGES AND APPURTENANCES THEREUNTO BELONGING, SITUATED, LYING AND BEING ON THE NORTHWEST
SIDE OF U.S. ROUTES 29-15 (BYPASS), LOCATED IN THE STEVENSBURG MAGISTERIAL DISTRICT, CULPEPER
COUNTY, VIRGINIA, AND ACCORDING TO A SURVEY OF BRIAN THROSSELL, CERTIFIED LAND SURVEYOR, DATED
OCTOBER 14, 1985, A COPY OF WHICH IS RECORDED WITH THE DEED RECORDED IN DEED BOOK 340, PAGE 60,
WHICH IS INCORPORATED HEREIN BY REFERENCE, IS MORE PARTICULARLY DESCRIBED AS FOLLOWS, TO-WIT:
“BEGINNING AT A POINT IN THE NORTHERLY RIGHT OF WAY LINE OF ROUTES 29 & 15 (BYPASS), SAID POINT
BEING THE MORE EASTERLY CORNER OF THE LAND OF TRICHILO; THENCE, DEPARTING ROUTES 29 & 15 AND
RUNNING WITH THE EASTERLY LINE OF SAID TRICHILO, N 24° 68’ 14” W. 770.00 FEET TO A POINT; THENCE,
DEPARTING TRICHILO AND RUNNING WITH NEW DIVISION LINES THROUGH THE TRACT; N, 56° 10’ 23” E. 934.32
FEET TO A POINT AND S. 53° 49’ 53” E. 809.68 FEET TO A POINT IN THE AFOREMENTIONED NORTHERLY RIGHT
OF WAY LINE OF ROUTES 29 & 15; THENCE, RUNNING WITH SAID NORTHERLY RIGHT OF WAY LINE, S. 51° 54’
01” W. 111.82 FEET TO A POINT; S. 55° 41’ 04” W. 598.08 FEET TO A POINT; S. 60° 10’ 57” W. 199.81
FEET TO A POINT; S. 53° 43’ 56” W. 199.57 FEET TO A POINT AND S. 58° 13’ 54” W. 221.72 FEET TO THE
POINT OF BEGINNING, CONTAINING 20.000 ACRES.”

(b) TOGETHER WITH A NON-EXCLUSIVE USE OF A CERTAIN 60-FOOT WIDE RIGHT OF WAY FOR THE PURPOSE OF
INGRESS AND EGRESS AS IS MORE FULLY SET FORTH IN A DEED RECORDED IN DEED BOOK 340, PAGE 60 AND ON A
PLAT BY BRIAN THROSSELL, C.L.S., DATED OCTOBER 14, 1985, WHICH IS INCORPORATED HEREIN BY REFERENCE.

A-1

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