Document:

EX-10.20

EXHIBIT 10.20 2007 credit facility with UNITED WESTERN BANK

CREDIT AGREEMENT

THIS CREDIT AGREEMENT (“Agreement”), dated as of May 7, 2007, is by and among ACROSS AMERICA
REAL ESTATE CORP., a Colorado corporation (“Company”), and UNITED WESTERN BANK (“Lender”).

RECITALS:

A. Company is engaged in the business of acquiring parcels of real estate throughout the lower
48 states of the United States for build-to-suit small box retail real estate construction projects
to be leased to various credit tenants.

B. Company has applied to Lender for a guidance line of credit facility for individual
construction loans to be made to the Company and its operating subsidiaries (individually, a “Loan”
and collectively, “Loans”), which in the aggregate will not exceed the Facility Amount (as
hereinafter defined), for the purpose of acquiring parcels of land and to pay for the costs
incurred in the development and construction of the improvements required under the leases to be
approved by Lender, all in accordance with plans and specifications to be approved by Lender.

C. Lender has agreed to make a revolving credit facility available to Company, subject to
Lender’s credit approval and underwriting of the economics of each such project, including, without
limitation, Lender’s approval of the lease, budget, schedule, appraisal, construction contracts,
title, zoning, environmental condition and other aspects of each such project, on the terms and
conditions stated herein.

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

AGREEMENT:

Section 1. Definitions. The following words shall have the following meanings when used in
this Agreement.

“Advance” or “Advances” shall mean a disbursement or disbursements made under any Loan
pursuant to the terms of the Loan Documents for the Project and this Agreement.

“Affiliate” shall mean with respect to a Person, any other Person that, directly or indirectly
through one or more intermediaries, controls, or is controlled by, or is under common control with,
such first Person; unless otherwise specified, “Affiliate” means an Affiliate of Borrower.

“Agreement” shall mean this Credit Agreement as may be amended or modified from time to time,
together with all exhibits and schedules attached to this Agreement from time to time.

“Approved Appraisal” shall mean an appraisal of the Project (i) ordered by the Lender, (ii)
prepared by an appraiser satisfactory to the Lender, (iii) prepared in accordance with the
requirements of Section 3.3, (iv) in compliance with all federal and state standards for
appraisals, (v) reviewed and approved by the Lender and (vi) in a form and substance satisfactory
to the Lender in its sole discretion.

“Approved Leases” shall mean the lease for the Project approved by Lender prior to the Closing
Date as more fully provided herein.

“Borrower” shall mean the Company and each Operating Subsidiary, collectively. A reference to
the Borrower shall be deemed a reference to any or all of the applicable borrowers.

“Borrower’s Deposits” shall mean such cash sums as may be deposited or may be required to be
deposited into the Collateral Account, including, but not limited to, the proceeds from insurance
claims, and additional sums deposited by Borrower as required in this Agreement.

“Borrower’s Equity” shall mean the investment by Borrower into each Project of Borrower’s cash
equity, in a manner satisfactory to Lender, prior to the Closing Date for the applicable Loan which
shall be in the amount not less than twenty-five percent (25%) of the Project Costs,
provided that in no event shall Borrower’s cash equity invested in each Project be less
than the difference between the applicable Project Costs and the Maximum Project Loan Amount.
Borrower’s Equity shall remain invested in each Project until the Loan with respect thereto has
been repaid in full. In addition to the Borrower’s Equity requirement, the Borrower is obligated
to fund cost overruns as provided in Section 4.5 below.

“Business Day” means (i) with respect to any borrowing, payment or rate as provided in the
Note, a day (other than a Saturday or Sunday) on which banks generally are open in Denver, Colorado
for the conduct of substantially all of their commercial lending activities and (ii) for all other
purposes, a day other than a Saturday, Sunday or any other day on which national banking
associations are authorized or obligated to close.

“Certified” shall mean, in connection with any document or instrument to be delivered to
Lender, that the same is certified by a principal of Borrower, that such document or instrument is
true, complete and correct.

“Closing” shall mean the making of first Advance under each Loan.

“Closing Date” shall mean the date of the first Advance under each Loan.

“Collateral” shall mean the Real Property, the Improvements, the Collateral Account, and all
other real and personal property in which Lender has obtained a lien, security interest or
assignment as described in any and all of the Security Documents.

“Collateral Account” shall mean a depository account to be opened and maintained with Lender
into which Lender may deposit Advances and in which Borrower may be required, under the terms
contained herein, to deposit Borrower’s Deposits and other sums as described herein.

“Company Subordinated Debt” shall mean, for purposes of making the computations called for in
Section 8.21, indebtedness and liabilities of the Company which have been subordinated to
indebtedness owed by the Company to Lender by written agreement in form and substance acceptable to
Lender.

“Completion Date” shall mean the date not later than the date scheduled for occupancy of the
Lessee under that applicable Approved Lease.

“Construction Contracts” shall mean the construction and development and architectural and
engineering contracts between Borrower or its agents and all Contractors and other persons for the
construction of the Improvements, including, with limitation, the General Contractor’s contract, as
they may be amended from time to time with Lender’s consent as provided herein.

“Contractors” shall mean the General Contractor and all architects, engineers, subcontractors,
sub-subcontractors, material suppliers or any other party who might now or may in the future claim
or have the right to claim a mechanic’s lien upon all or any portion of the Project.

“Debt” shall mean all of the Company’s liabilities excluding Company Subordinated Debt. Debt
shall include, without limitation (in each case, whether such obligation is with full or limited
recourse): (i) any obligation for borrowed money; (ii) any obligation evidenced by a bond,
debenture, note or other similar instrument; (iii) any obligation to pay the deferred purchase
price of property or services, except trade accounts payable within sixty (60) days and which arise
in the ordinary course of business only if and so long as such trade accounts are payable on
customary trade terms; (iv) any obligations as a lessee under a capitalized lease; (v) any
obligation to purchase securities or other property that arises out of or in connection with the
sale of the same or substantially similar securities or property; (vi) any contingent obligations
to reimburse any person in respect of amounts paid under a letter of credit or other guaranty
issued by such other person, to the extent that such reimbursement obligation remains outstanding
after it becomes noncontingent; (vii) any obligation with respect to interest rate or currency
swaps or similar obligations requiring a person to make payment, whether periodically or upon the
happening of a contingency, except that if any agreement relating to such obligation provides for
the netting of amounts payable by and to such person thereunder, or if such agreement provides for
the simultaneous payments of amounts by and to such person, then in such case the amount of such
obligation shall be the net amount thereof; (viii) any debt of others secured by (or which the
holder of such indebtedness has an existing right, contingent or otherwise to be secured by) a lien
on any asset of the Company; (ix) any indebtedness of others guaranteed by the Company; and (x) any
and all other liabilities reflected on the balance sheet of the Company.

“Debt Service Coverage Ratio” means, for any twelve (12)-month period, in the case of each
Project, the ratio, as determined by Lender, of (i) NOI of the Approved Lease for such period to
(ii) an amount equal to the principal and interest payments that would be due and payable during
such period based upon the amount necessary to fully amortize a hypothetical loan in an amount
equal to the Maximum Project Loan Amount, using an interest rate equal to the Interest Rate as of
the date of determination by Lender, in equal installments over an assumed amortization period of
25 years.

“Deed of Trust” shall mean the first priority deed of trust (or if approved by Lender, a
mortgage) to be delivered to Lender at each Closing for each Loan encumbering the Real Property and
the Improvements of the Project given by the owner, which shall be on Operating Subsidiary, for the
benefit of Lender, as the same may be amended, modified, extended, renewed, restated or
supplemented from time to time.

“Default Rate” has the meaning given such term in Section 11.

“ERISA” has the meaning given such term in Section 8.14.

“Event of Default” shall mean and include any of the Events of Default set forth below in the
section titled “Events of Default.”

“Facility” means the credit facility to be extended by Lender under this Agreement and shall
include all Loans made hereunder.

“Facility Amount” means Twenty-Five Million Dollars ($25,000,000.00).

“Facility Expiration Date” has the meaning given such term in Section 2.5.

“GAAP” shall mean generally accepted accounting principals consistently applied.

“General Contractor” shall mean any contractor selected by Borrower and approved by Lender to
act as the general contractor for any Project.

“Governmental Authority” shall mean the governmental or quasi-governmental agency or board
having zoning, subdivision and land use authority and other jurisdiction over the Real Property.

“Improvements” shall mean the buildings and all other improvements located on each Real
Property including, without limitation, foundations, all structural, heating, air conditioning,
ventilation and electrical improvements, all tenant finish improvements, and including the
Improvements to be constructed with the proceeds of each Loan pursuant to the applicable Project
Plans and Specifications.

“Inspector” shall mean the consulting firm hired by Lender, at Borrower’s expense, to perform
periodic observations of the Project and to advise Lender as to conformance of the Improvements, as
constructed, with the Construction Contracts, Project Plans and Specifications and Project Budget.
The initial Inspector shall be as designated by Lender, and may be changed from time to time in
Lender’s absolute discretion.

“Interest Rate” shall mean a rate of interest per annum equal to the Prime Rate less one-half
of one percent (0.5%), with the Interest Rate to be adjusted on the date of each change in the
Prime Rate.

“Lender” shall mean United Western Bank, and its successors and assigns.

“Lessee” shall mean any one or more persons or entities who lease or occupy space within the
Project under an Approved Lease.

“Loan Documents” shall mean collectively this Agreement, all Notes, all Project Loan
Agreements, the Security Documents, and any other document now or hereafter evidencing or securing
the Loans as they may be hereafter modified or amended.

“Loan Expenses” shall mean all expenses, charges, costs and fees of Lender referred to or
necessitated by the terms of this Agreement, or incurred by Lender in connection with this
Agreement or the other Loan Documents, including, without limitation, all recording and
registration fees, charges and taxes, title insurance charges and premiums, legal fees and
disbursements of counsel for Lender, documentation and processing fees, copying expenses, courier
charges for delivery of documents, loan commitment fees, costs of consultants retained by Lender,
long-distance telephone charges, costs of surveys, environmental audit expenses, fees of any
architect or engineer and other professional retained by Lender in connection with this Agreement,
costs of premiums on surety company bonds, appraisal fees and out-of-pocket expenses of Lender in
administering this Agreement, regardless of whether incurred before or after the Closing Date.

“Material Adverse Event” or “Material Adverse Effect” shall mean any circumstance, occurrence
or event which, in the reasonable discretion of Lender, may materially and adversely affect the
present or prospective financial condition or operations of Borrower or materially impair the
ability of Borrower to perform its obligations under the Loan Documents.

“Maturity Date” shall mean the maturity date stated in the Note evidencing each Loan.

“Maximum Project Loan Amount” shall mean the maximum principal amount of each Loan for each
Project determined by Lender in accordance with Section 2.2 regardless of the amount actually
disbursed.

“NOI” shall mean, for any period, the proforma, gross income from a Project based upon actual
lease rates contained in the Approved Lease, computed on an annualized basis, less all Operating
Expenses, as reasonably determined by Lender.

“Note” shall mean the promissory note for each Loan executed by Borrower in connection with
each Project payable to the order of Lender in the Maximum Project Loan Amount as they may be
amended, modified, extended, renewed, restated or supplemented from time to time. “Notes” shall
mean all of such promissory notes.

“Obligations” shall mean all of the direct and indirect, matured or unmatured financial and
other obligations, covenants and agreements to be performed by Borrower to or for the benefit of
Lender under any of the Loan Documents, including, without limitation, Borrower’s obligation to
repay to Lender all principal and interest due under each Loan.

“Operating Expenses” shall mean, for any period, all actual ordinary and normal costs and
expenses of the ownership, maintenance, management and operation of a Project and shall include
amounts reasonably estimated by Borrower to be reserved for the payment of taxes, insurance,
security deposits and similar current liabilities, including any management fees, as reasonably
determined by Lender.

“Operating Subsidiary” shall mean an Affiliate of the Company that is an operating subsidiary
of the Company, formed, pursuant to organizational documents satisfactory to Lender, for each
Project for the purpose of owning, constructing and operating the same. Each Operating Subsidiary
shall be a single-purpose entity.

“Person” means any individual, sole proprietorship, corporation, partnership, limited
liability company, trust, unincorporated organization, mutual company, joint stock company, estate,
union, employee organization, government or any agency or political subdivision thereof.

“Prime Rate” shall mean the “prime rate” designated in the “Money Rates” table published each
business day in the Central edition of The Wall Street Journal. If The Wall Street Journal prime
rate is unavailable at any time, Lender will select a replacement index or other appropriate
measure as the basis for the interest rate for the Notes. The Prime Rate is not necessarily the
lowest interest rate offered or charged by Lender at any given time for commercial or other
extensions of credit.

“Project” shall mean the performance of, as distinct separate projects, (i) the acquisition of
a parcel of Real Property in connection with an Approved Lease, and (ii) the development and
construction of the Improvements in connection with leasing of such Real Property to be completed
by the landlord under an Approved Lease entered into subsequent to the Closing Date, all to be
accomplished in accordance with the Project Budget, the Project Schedule, and the Project Plans and
Specifications. As the context may require, the term “Project” shall also mean and refer,
collectively, to the (i) Real Property and (ii) Improvements to be constructed thereon in
accordance with the Project Plans and Specifications. “Projects” shall mean all of such projects.

“Project Budget” shall mean a budget prepared for each Project, as approved by Lender as
provided herein, for the costs of acquiring each Real Property and the hard and soft costs of
development and construction of the Improvements for those specific line items shown in the Project
Budget, including the costs of the construction of the Improvements under an Approved Lease for
each Project. Each Project Budget shall include a trade payment breakdown. Further, without
limiting the generality of the foregoing, each Project Budget shall include an interest reserve
approved by Lender, provided Borrower will remain liable for the payment of all interest under the
Loan Documents in the event of any deficiency.

“Project Costs” shall mean the total costs of each Project as reflected in the Project
Budgets, including land costs, hard costs, soft costs, loan fees and leasing commissions.

“Project Loan Agreement” has the meaning given such term in Section 3.1(b). “Project Loan
Agreements” shall mean all of such loan agreements.

“Project Plans and Specifications” shall mean all plans, specifications, engineering studies
and other construction documents approved by Lender for each Project for the construction of the
Improvements as may be amended from time to time with Lender’s consent.

“Project Schedule” shall mean the construction schedule prepared by Borrower for each Project,
which shall be subject to approval by Lender, together with any amendments thereto approved by
Lender.

“Real Property” shall mean the real estate acquired for each Project and all Improvements.

“Security Documents” shall have the meaning ascribed in Section 3.1 hereof.

“State” shall mean, in the case of each Project, the state in which the Project is located.

“Subordinate Debt” means the loans made to the Company by Affiliates thereof set forth on
Exhibit C attached hereto and made a part hereof.

“Subordinate Lender” means each holder of Subordinate Debt.

“Subordination Agreement” means an agreement entered into by a Subordinate Lender, for the
benefit of Lender, in form and substance satisfactory to Lender, pursuant to which payments
(including principal and interest) on the Subordinate Debt held by such Subordinate Lender and the
exercise of any remedies by such Subordinate Lender with respect thereto are prohibited, on terms
and conditions satisfactory to Lender, until the Obligations have been paid in full to Lender.

“Tangible Net Worth” shall mean the Company’s total assets excluding all intangible assets
(i.e., goodwill, trademarks, patents, copyrights, and similar intangible items, but including
leaseholds and leasehold improvements) less total Debt.

“Title Company” shall mean First American Heritage Title Company, as agent for First American
Title Insurance Company, which shall insure the priority of the Deeds of Trust for the Projects.

Section 2. Loan Commitment; Project Approval; Facility. Lender and Borrower agree that
Lender’s obligation to make Loans to or for benefit of Borrower is subject to the following terms
and conditions.

2.1 Underwriting and Credit Approval. Lender shall have no obligation to make any Loan or
Advances until and unless Lender has completed its credit analysis of the Project and has approved
the Loan under the Lender’s then existing credit standards and policies; and Lender shall have
reviewed and approved all aspects of the Project as more fully provided herein, including without
limitation each of the following: Approved Appraisal, Project Budget, Project Schedule,
Construction Contracts, Approved Lease, the Lessee, Project Budget, General Contractor, Project
Costs and all of the conditions to initial disbursement as provided below. Lender offers no
assurance that any individual Project will be approved. Lender shall be under no obligation to
approve any particular Project. Lender shall be under no obligation to make a Loan unless and
until it has approved the Project, and then the closing and funding of the Loan shall be subject to
the conditions set forth in Sections 2, 3 and 4 below.

2.2 Conditions for Project Approval. In addition to all other conditions for Advances
contained in this Agreement and the Loan Documents, the following conditions precedent shall apply
to Lender’s approval for each Project:

(a) Project Type. The proposed Project must be for a pre-leased, single-tenant,
build-to-suit retail, commercial or industrial construction project, located within the lower 48
states of the continental United States, consisting of a small box retail facility for a nationally
or regionally recognized franchise from a franchisor approved by Lender (which can include, but is
not limited to, Family Dollar, Advanced Auto Parts, IHOP, Lone Star Steak House Grease Monkey,
Carl’s Jr. and FedEx Kinko’s).

(b) Approved Lease. No Loan shall be approved for any Project unless and until
Borrower has obtained a lease for the Project and the lease and the prospective tenant have been
approved by Lender as an Approved Lease under Section 2.3 below. There shall have occurred no
event of default or breach under the Approved Lease and no Material Adverse Event shall have
occurred affecting the Lessee under the Approved Lease.

(c) Borrower Due Diligence; Items to be Provided to Lender for Approval. Borrower
shall have delivered to Lender a copy of the Project due diligence gathered by Borrower, including
copies of the following:

(1) Fully executed letter of intent for a lease from a credit tenant;

(2) Proposed lease;

(3) Internally prepared available work product concerning the proposed

tenant (corporate store or franchisee), and financial strength thereof;

(4) Purchase contract for the Real Estate;

(5) Project Budget exhibiting 25% of Project Costs invested by

Borrower prior to Closing as borrower equity;

(6) Description/location of Real Estate;

(7) Franchise agreement of the tenant relating to the Project, and

(8) If Franchise, a notice of Good Standing from Franchisor.

(d) Budget. Borrower shall have submitted to Lender a proposed budget for the Project
itemizing the gross costs, including the direct or indirect costs for the acquisition of the Real
Property and the construction of the Improvements for the Approved Lease, certified by Borrower,
which shall be in a form and content satisfactory to Lender and shall be subject to approval by
Lender. Borrower shall have submitted the Project Schedule for the Project to Lender for its
approval.

(e) Construction Contracts. Lender shall have received certified copies of the true,
accurate and complete copies of the Construction Contracts, the form and content of which shall be
subject to Lender’s approval. The Construction Contract of the General Contractor shall be a firm
and binding fixed price contract for the construction of all of the Improvements. Thereafter, such
Contracts shall remain in full force and effect and no Material Adverse Event shall have occurred
affecting any of such Construction Contracts.

(f) Approved Appraisal. Lender shall have received, obtained and approved an Approved
Appraisal for the Project.

(g) Maximum Project Loan Amount. Each Loan shall be for a principal amount,
determined by Lender, not to exceed the lesser of 75% of the appraised value of the Real Property
under the Approved Appraisal for the Project or 75% of the Project Costs.

(h) Debt Service Coverage Ratio. The Approved Lease must reflect an NOI that is in
compliance with the Debt Service Coverage Ratio required herein. For a lease to be approved by
Lender, the Debt Service Coverage Ratio must equal or exceed 1.25 to 1 for the period or periods
determined by Lender.

Lender shall have three business days after receipt of all of the information required above
in which to review and approve or reject the proposed Project. If Lender fails to respond within
such ten (10) days, the proposed Project and the proposed lease shall be deemed to have been
disapproved by Lender. Even if approved, the Lender’s obligation to disburse funds under a Loan for
an approved Project shall be subject to the terms and conditions stated in Section 3 below.

2.3 Approval of Leases. All new proposed leases and each proposed tenant for each Project
must be pre-approved by Lender in accordance with the following:

(a) The lease must be a bona fide, arms-length lease executed in Borrower’s ordinary course of
business.

(b) Lender must have received a complete copy of the proposed lease (together with all
exhibits, work orders and other related documents) to be executed by the Lessee and Borrower,
clearly specifying the rental rate and all free rental periods, concessions and commissions related
to the lease.

(c) Unless disclosed to and approved by Lender, the Lessee must be a person or entity who is
not affiliated with or controlled by, controlling, or under common control with the Company, any
Operating Subsidiary or any member or partner thereof.

(d) The term of the Lease must be for a minimum of 5 years from the date of completion.

(e) The rental rate of the Lease must reflect an NOI that will, upon the Completion Date,
comply with the Debt Service Coverage Ratio required herein. For a lease to be approved by Lender,
the Debt Service Coverage Ratio must equal or exceed 1.25 to 1 for the period or periods determined
by Lender.

(f) The terms of the lease, including without limitation, the subordination provisions, shall
be acceptable to Lender.

(g) The present and future financial condition and business prospects of the proposed tenant
shall be acceptable to Lender and Lender shall have received financial statements and a credit
bureau report on the proposed tenant.

(h) Any additional information reasonably requested by Lender concerning the proposed tenant
or the terms of the lease.

2.4 Note; Payment Terms. Each Loan shall be evidenced by an individual Note to be
executed at closing of each Loan and shall be payable upon the terms provided therein, which may
include, but not be limited to, the following:

(a) As more fully provided in the Notes, interest shall accrue at the Interest Rate on the
outstanding principal balance of each Note.

(b) Upon and after the occurrence of an Event of Default, at the option of Lender, the
outstanding principal balance of each Note shall bear interest at a rate per annum equal to the
Default Rate.

(c) All accrued and unpaid interest shall be due and payable on the first day of each calendar
month from and after the date of the Note to and including the Maturity Date of such Loan as set
forth in Section 2.4(d).

(d) If not sooner paid, the entire unpaid principal balance, all accrued and unpaid interest,
and all other amounts payable under each Note shall be due and payable in full on the date that is
the twelve-month anniversary of the date of the Note; provided, however that each Note shall have a
single six-month extension option subject to the following conditions that must be satisfied as
determined by the Lender:

(1) the completion of the Project is scheduled to be completed in compliance with the Project
Budget and the Project Schedule;

(2) the Lessee is in compliance with the Approved Lease, no event of default or breach has
occurred under the Approved Lease, no material adverse event shall have occurred affecting the
Lease and the Lessee shall not have the option to terminate the Approved Lease;

(3) there shall have occurred no Event of Default nor shall there have occurred any event that
with the passage of time or giving of notice, or both, would constitute an Event of Default;

(4) Borrower shall have paid the extension fee as defined in section 2.6 below;

(5) Borrower shall have given Lender not less than thirty (30) days’ written notice of its
exercise of such extension option;

(6) The Debt Service Coverage Ratio must equal or exceed 1.25 to 1 for the period or periods
determined by Lender; and

(7) Borrower shall have paid the extension fee provided for in Section 2.6(c).

(e) Notwithstanding the foregoing, each Loan and all accrued and unpaid interest thereon,
together with all other sums payable under the Note and Deed of Trust relating thereto, shall be
due and payable in full upon the sale of any Project encumbered by such Loan.

2.5 Expiration of Facility. The facility shall expire twelve (12) months from the
date hereof (the “Facility Expiration Date”), at which time Lender shall have no obligation to
review or approve any additional Projects or establish any new Loans, but Lender shall continue to
make Advances with respect to any existing Loans in accordance with the terms and provisions of
this Agreement, and the Loan Documents shall remain in full force and effect until paid in full.

	2.6	 	Loan Fees and Expenses.

(a) On each Closing Date, Borrower shall pay to Lender a non-refundable loan fee for each Loan
in the amount of 1/2 of one percent of the Maximum Project Loan Amount.

(a) On each Closing Date, Borrower shall pay to Lender all Loan Expenses.

(c) For any extension approved by Lender, subject to the conditions stated herein for any
Note, Borrower shall pay an extension fee of 1/4 of one percent of the Maximum Project Loan Amount.

2.7 Facility. The purpose of this Agreement is to set forth the terms and conditions under
which Lender will make Loans. Requests for Loans shall be submitted by Borrower to Lender, and
such Loans shall be approved only upon the completion of the required procedures as set forth
herein for such approval. The Facility shall be revolving in nature such that prior to the
Facility Expiration Date, the Facility may be drawn, repaid and drawn again through individual
Loans in unlimited repetition so long as the sum of (a) the aggregate principal amounts outstanding
under Loans, and (b) the cumulative Loan amounts that are committed but not yet advanced under the
Facility never exceeds Twenty-Five Million Dollars ($25,000,000.00) at any one time, and so long as
no Event of Default has occurred.

2.9 Limitation on Facility Amount. Notwithstanding anything to the contrary contained
herein, until such time as Lender has granted a participation in the Facility in an amount not less
than Ten Million Dollars ($10,000,000.00) to a participant satisfactory to Lender, and such
participant has acquired such participation, the Facility Amount shall be Fifteen Million
Dollars ($15,000,000.00).

Section 3. Conditions Precedent to Lender’s Obligations; Conditions Precedent to Closing of
Each Loan. Lender shall have no obligation to make the initial Advance under a Loan for a
Project approved by Lender on the Closing Date, unless Lender has approved the Project, the
Approved Lease, the Lessee, the Project Budget and Project Schedule as provided in Section 2 above
and, in addition, each of the following conditions precedent set forth in this Section 3 have been
strictly satisfied, in each case in form and substance acceptable to Lender, or have been waived by
Lender.

Without limiting the generality of the foregoing, the obligations of Lender hereunder are
conditioned on the receipt by Lender of the following, each in form and substance satisfactory to
Lender in its sole discretion:

(a) A certificate of the Secretary or an Assistant Secretary of the Company, dated as of the
date hereof, containing an incumbency certification and otherwise in form satisfactory to Lender,
to which shall be attached copies of the resolutions and bylaws described below;

(b) A copy of the articles of incorporation of the Company, certified, as of a recent date, by
the Colorado Secretary of State;

(c) A good standing certificate with respect to the Company, issued, as of a recent date, by
the Colorado Secretary of State;

(d) A copy of the bylaws of the Company;

(e) Resolutions duly adopted by the board of directors of the Company authorizing,
inter alia, the transaction contemplated hereby, the entering into of this
Agreement by the Company and the execution of this Agreement on the Company’s behalf by an
authorized officer of the Company.

(f) An opinion of counsel for the Company, dated the date hereof, addressing such matters as
may reasonably be requested by Lender or its counsel;

(g) Subordination Agreements in favor of Lender executed by each of the Subordinate Lenders
with respect to the Subordinate Debt held by them;

(h) Certified copies of the promissory notes evidencing the Subordinate Debt; and

(i) Such other instruments, items and other documents as Lender may reasonably request.

3.1 Loan Documents. Borrower shall have executed and delivered any and all documents and
instruments requested by Lender in a form and substance satisfactory to Lender, in Lender’s sole
discretion, to evidence and secure the Loan, including, without limitation, the following:

	 	(a)	 	A promissory note for the Loan;

(b) A construction loan agreement for the Project (a “Project Loan

Agreement”);

(c) The following security instruments (the “Security Documents”):

(1) A first priority lien Deed of Trust encumbering the Real Property and

the Improvements;

(2) UCC-1 Financing Statements;

	 	(3)	 	A Security Agreement encumbering all personal
property related to

the Project;

(4)

A Pledge Agreement for the Collateral Account, at the option of

Lender;

(5) A valid and effective Present Assignment of Rents and Leases;

(6) A valid and effectual Assignment of all Project Plans and

Specifications and Construction Contracts, together with such

consents and agreements of the Contractors as Lenders may request;

(7) A separate environmental indemnity agreement, at the option of

Lender; and

(8) Any other documents which Lender may reasonably request of

Borrower as necessary, supplementary or convenient to perfect

Lender’s security interest in the Collateral.

3.2 Loan Fee/Expenses. At each Closing, Borrower shall pay to Lender the Loan fees and all
of Lender’s out-of-pocket Loan Expenses, in each case as set forth in Section 2.6, incurred in
connection with the Closing of the Loan and the making of the initial Advance. Without limiting the
generality of the foregoing, on the date hereof, Borrower shall pay to Lender all of Lender’s
out-of-pocket Loan Expenses incurred in connection with this Agreement.

3.3 Appraisal. Lender shall have received an Approved Appraisal of the Real Property
certified to Lender and issued by an MAI designated appraiser chosen by Lender containing a final
dollar estimate of the market value of the Real Property, as completed, as leased, with appropriate
discounting, and conforming with Lender’s underwriting standards and rules and regulations of the
Office of the Comptroller of the Currency. The appraisal shall be reviewed by and found to be
satisfactory to Lender in its sole discretion. The maximum amount of the principal balance of the
Loan shall not exceed a loan-to-value ratio stated in Section 2.2 above and thereafter the maximum
amount of the principal balance of the Loan shall not exceed the loan-to-value ratio stated in
Section 2.2 above.

3.4 Plat. Lender shall have received a copy of all plats, planned unit development maps,
planned building group maps, and preliminary or final site development plans for the Real Property.
Each Real Property must constitute a legally subdivided parcel.

3.5 Survey; Flood Hazard. Lender shall have received a current land survey plat certified
to Lender and the Title Company prepared and certified by a professional land surveyor licensed in
the state where the Project is located, which shall be prepared in accordance with the most recent
ALTA/ASCM standards for urban surveys including items 1-13 on Table A and shall be certified to
Lender, the Title Company and Borrower in a manner satisfactory to Lender. Lender shall have
received a certification, from a company of its choice, certifying that no portion of the Real
Property is located within a Federal Emergency Management Agency identified flood plain area and
state the map number or within any other flood hazard area.

3.6 Title. Borrower shall hold fee simple title to each Real Property, subject only to the
exceptions to title approved by Lender. Each Real Property shall be subject to no liens, other
than the lien of general real estate taxes and assessments not yet due and payable.

3.7 Title Insurance. Lender shall have received a binding mortgagee’s title insurance
commitment from the Title Company in form and substance satisfactory to Lender, together with
legible copies of all documents affecting title and a current tax certificate or the equivalent, in
which the Title Company has unconditionally committed to insure the lien of the Deed of Trust for
the benefit of Lender as a first priority lien encumbering the Real Property and Improvements under
an ALTA loan policy 1992 form, subject to no exceptions other than to those which Lender has
specifically consented to in writing (“Permitted Exceptions”) and containing a revolving credit
endorsement, a so-called comprehensive endorsement, a variable rate endorsement, an ALTA Form 8.1
environmental lien endorsement (construction form), and such other endorsements as Lender may
request. Such title commitment shall call for the deletion of all standard preprinted exceptions
(including survey exceptions). At Lender’s option, the policy to be issued will provide mechanic’s
lien coverage satisfactory to Lender. At Lender’s option, title commitment shall contain a pending
disbursement clause acceptable to Lender. Such title commitment shall require the policy to
contain such endorsements as Lender may request. Such commitment will be accompanied by such
re-insurance and co-insurance agreements and endorsements as Lender may require.

3.8 Plans and Specifications; Engineering Reports. Borrower shall have delivered to Lender
the Project Plans and Specifications approved by the required Governmental Authorities, which shall
be in a form and content satisfactory to Lender and shall be subject to approval by Lender. Lender
shall have received all engineering reports and other reports, data and information required by
Lender to indicate that the Real Property is suitable for its intended use, without extraordinary
land preparation or expense. Any recommendation in such reports must have been complied with or
incorporated into the Project Plans and Specifications.

3.9 Environmental Compliance. Lender shall have received a current Phase I environmental
audit of the Real Property in a form and substance acceptable to Lender, issued by an environmental
engineering firm acceptable to Lender, prepared in accordance with the ASTM standards for
environmental site assessments. The environmental assessment shall indicate that the Real Property
and Improvements do not contain, incorporate nor are threatened by contamination from any hazardous
materials and/or hazardous substances, including, but not limited to, asbestos, PCBs, underground
storage tanks, ground water or soil contamination, and that the Real Property does not contain any
wetlands or endangered species habitat. In the event that the environmental audit indicates that
further sampling and analysis is warranted, Lender may require further testing and evaluation at
Borrower’s expense. If the environmental reports or audits disclose risk of environmental
liability or if the auditors make recommendations regarding the abatement or removal of hazardous
materials or substances, Lender may refuse to make Advances or disbursements until such risk has
been removed or Borrower has performed all measures recommended by the auditor. In the event the
environmental reports or audits disclose risk of environmental liability, and the Borrower is not
pursuing appropriate remedies, Lender may require an environmental indemnity agreement (which may
be contained in the Project Loan Agreement or Deed of Trust) indemnifying Lender against all
environmental risks and liabilities, in a form acceptable to Lender.

3.10 Zoning. Lender shall have received evidence that the Real Property is properly zoned
for the Improvements and their intended use and that such zoning is final and not subject to
challenge.

3.11 Mechanic’s Lien Waivers. Lender shall have received lien waivers for any work
performed or materials supplied by Contractors prior to the Closing Date.

3.12 Insurance. Lender shall have received evidence of insurance as required in any of the
Loan Documents. All evidence of insurance shall be on an ACCORD 27 form.

3.13 Utilities. Lender shall have received evidence that all utilities and services to the
Real Property, including, without limitation, water, sewer, gas and electric, and telephone, are
available at the boundary of the Real Property in amounts sufficient to service the on-site
Improvements for their intended use.

3.14 Permits. Lender shall have received a copy of grading, building and any other permits
required from any Governmental Authority necessary for the construction of the Improvements and the
same shall be in full force and effect.

3.15 Organizational Documents. Lender shall have received a Certified copy of all
organizational documents (including operating agreements if the entity is a limited liability
company) of Borrower, including the Operating Subsidiary that owns the applicable Project, and
their managing members/managers, and their managing partners evidencing that each of them is
validly existing and in good standing under all states in which they are either formed or in which
they are conducting business. Lender shall have received certificates of good standing from the
secretaries of state or similar governmental authority indicating they are in good standing.

3.16 Borrowing Resolution. Borrower shall have delivered to Lender a copy of a written
consent of its owners/members consenting to (i) Borrower’s execution, delivery and performance of
the Loan, (ii) the execution and delivery and performance of all of Borrower’s obligations under
the Loan Documents, and (iii) authorizing the officers of Borrower to request all Advances under
the Loan and permitting Lender to rely on the signature of any person purporting to be a manager of
Borrower for an Advance under the Loan.

3.17 Legal Opinion. At the option of Lender, Borrower shall cause its independent legal
counsel, acceptable to Lender, to issue and deliver to Lender its legal opinion that Borrower is a
duly formed, validly existing corporation in good standing under the laws of the state of Colorado;
that the Loan Documents have been duly executed and delivered by Borrower and are enforceable in
accordance with their terms; and as to such other matters as Lender shall reasonably request.

3.18 Representations. All representations and warranties by Borrower shall remain true,
correct and complete.

3.19 No Event of Default. No Event of Default shall exist, and no event shall have
occurred or condition exist that, after notice of lapse of time, or both, would constitute an Event
of Default.

3.20 Owner’s Equity. Lender shall have received evidence sufficient to indicate that
Borrower has invested the minimum Borrower’s Equity. If Lender has not received sufficient
evidence indicating the minimum Borrower’s Equity, Lender may require Borrower to make a Borrower’s

Deposit to be held by Lender in the Collateral Account and disbursed in accordance with the
disbursement procedures contained herein.

3.21 Leases. Lender shall have received a copy of the fully executed Approved Lease
affecting the Real Property. Lender shall have received a subordination, non-disturbance and
attornment agreement on Lender’s standard form, executed by the Lessee and Borrower, subject to the
terms of Section 6.4. No materially adverse event, such as bankruptcy, shall have occurred
concerning the Lessee.

3.22 Payment and Performance Bonds, Etc. Lender shall have received Certified copies of
all Construction Contracts and, at Lender’s option, a payment and performance bond from the General
Contractor for the full amount of the Construction Contract, with a dual oblige endorsement issued
to Lender, all in a form and content acceptable to Lender.

3.23 Other Matters. Lender shall have received such other documents and items as it shall
reasonably request.

	 	 	Section 4. General Provisions for all Advances.

4.1 Advances. Subject to the strict satisfaction of the conditions contained in this
Agreement, Borrower may request and the Lender shall make Advances on each Loan in the manner set
forth in each Project Loan Agreement, only for the amounts and for the cost items set forth in the
Project Budget.

4.2 Satisfaction of Conditions. Although Lender shall have no obligation to make any
Advance unless and until all of the conditions and prior performances set forth herein have been
kept,

fulfilled or performed, and until all inspections, certifications, releases, waivers, or paid bills
or other requirements set forth herein or in the Project Loan Agreement have been made, delivered
and complied with, Lender, at its sole discretion, may make Advances prior to that time without
waiving or releasing any of the requirements or conditions of this Agreement; but Borrower shall
continue to be strictly obligated and subject thereto, and all such conditions, prior performances
and other requirements shall nevertheless be strictly and punctually complied with and fulfilled
and performed; and, notwithstanding any such disbursement, Lender, at its sole discretion, may
discontinue any further Advances at any time until all of the conditions, prior performances and
other requirements of this Agreement have been strictly fulfilled, performed and complied with.

Without limiting the generality of the foregoing, certain disbursement procedures for
Advances, including, without limitation, requirements for draw requests and supporting
documentation from Borrower and inspections by Lender’s Inspector, and limitations on Advances for
hard and soft costs shall be as set forth in the Project Loan Agreement for each Loan.

4.3 Excess Advances. Borrower shall immediately repay any Advance received by Borrower in
excess of the amount Borrower is entitled to under the provisions of this Agreement.

4.4 Other Discretionary Disbursements/Advances. At its discretion, Lender may pay, but
shall not be obligated to pay, from the Collateral Account or the undistributed proceeds of any
Loan, even without a disbursement request, any of the following: (a) Loan fees; (b) Loan Expenses;
(c) after an Event of Default, any amounts necessary to remove defects of title to the Real
Property, or to pay liens and other encumbrances on the Real Property, which are prior to Lender’s
interest in the Real Property or which claim a priority over Lender’s interest in the Real
Property; (d) amounts due and payable to third persons in accordance with the terms and provisions
of this Agreement, the Note, or the Loan Documents; (e) amounts to preserve or protect any
Collateral securing the Loan in accordance with the terms of this Agreement; and (f) after an Event
of Default, amounts necessary to complete the Improvements in accordance with the Construction
Contracts and the Project Plans and Specifications. Any such payments shall for all purposes be
deemed to be an Advance on the Loan. If the amount so disbursed results in total Advances
exceeding the maximum principal amount of the Loan, or if such Advances when added to disbursements
requested by the draw documents, exceed such amount, it shall nevertheless be deemed to be subject
to the terms and conditions of this Agreement, to accrue interest in the same manner as all other
disbursements hereunder, to be repaid by Borrower in the manner set forth herein, and shall be
secured by the Collateral. Lender shall be under no obligation to advance to Borrower an amount in
excess of the maximum principal amount of the Loan, even if, after making the optional Advances
allowed under this Section the remaining Loan funds are inadequate to complete construction of the
Project.

4.5 Project Cost Overruns. If, at any time, the remaining costs of completing any Project
exceeds the remaining undisbursed portion of the Loan allocated for that Project, as determined by
Lender, whether such increase is a consequence of modifications or amendments to the Construction
Contracts or cost overruns, then, Lender shall not be obligated to approve any Advances or further
disbursements from the Collateral Account until such time as Borrower has either provided evidence
that it has advanced from its own funds all expenses of such cost overruns or has paid additional
sums into the Collateral Account as hereinafter provided. Lender shall have the right to demand
that Borrower pay into the Collateral Account additional sums as calculated by Lender in its
reasonable discretion sufficient to complete the Project in accordance with the Construction
Contracts such that the amounts so deposited into the Collateral Account and the remaining
undisbursed balance of the Loan allocated to the Project is in an amount that equals or exceeds the
revised Project Budget; and Borrower’s failure to do so within ten (10) days of demand by Lender
shall constitute an Event of Default. Lender shall have no obligation to make disbursements from
the Collateral Account or make any Advances under the Loan until such funds have been deposited
with Lender, as Lender may request from time to time in accordance with the provisions of this
Agreement. Such funds shall constitute a portion of Borrower’s Deposits. The Collateral Account
shall be an account maintained with Lender into which all of Borrower’s Deposits shall be deposited
and into which Advances on the Loan may be deposited and against which checks may be drawn for the
purpose of disbursing the proceeds for the purposes described herein and for the other purposes
described in this Agreement. Borrower shall not have the right to withdraw the funds for any
purpose. No interest shall accrue on the funds deposited into the Collateral Account. All funds
in the Collateral Account are pledged as additional Collateral for the Loan.

Section 5. Responsibility for Completion/Indemnity. Lender assumes no responsibility for
completion of all or any portion of any Project. Lender shall have no obligation to any person to
complete any portion of any Project, to apply undisbursed portions of the Loan to claims
outstanding for the construction of any Project, or to exercise any of its rights hereunder.
Nothing herein shall be construed as establishing a relationship between the Lender and any other
party except the debtor/creditor relationship between Borrower and Lender. Lender shall owe no
duty to any person to review any of the Construction Contracts, to insure compliance with
Construction Contracts, to inspect the construction of the Improvements, or to warn Borrower or any
other party of any defect or mistake in the Improvements. By accepting, reviewing or approving
anything to be observed, performed or fulfilled by Borrower, Lender shall not be deemed to have
warranted or represented the sufficiency, legality, effectiveness, completeness, correctness or
legal effect of the same or of any term, provision or condition thereof. All inspections are
conducted for the sole benefit of Lender. Neither the Borrower, Contractors, nor any contract
purchaser or other person may rely, or have any right to rely, upon Lender’s determination of the
appropriateness of any Advance, approval of any inspection, or Lender’s approval of any other
matter contained herein. Borrower shall, on demand, indemnify, defend and hold harmless Lender,
its agents, participants, affiliates, officers, directors and employees of and from any and all
liabilities, claims, demands, actions, causes of action, costs and expenses, including, without
limitation, reasonable attorney fees and costs and expenses reasonably incurred in preparing or
defending against any litigation or claim, action, suit, proceeding or demand of any kind or
character, asserted against Lender or incurred by Lender at any time by reason of, arising out of,
or related to, directly or indirectly, the construction of the Project, the condition of the Real
Property, or any injury, death or accident occurring on or about the Real Property.

Section 6. Conditions Precedent to Initial and Subsequent Advances. Lender shall have no
obligation to make any Advances for any Improvements until, as to each such Advance, all of the
following conditions precedent are strictly satisfied, substantial completion being insufficient:

6.1 Prior Conditions. All conditions precedent listed in Sections 2, 3, and 4 have been
satisfied and continue to be satisfied on an on-going basis, and any written request by Lender for
any updated, additional or revised documentation or information required thereunder has been
satisfied within a reasonable time, but not more than ten (10) days following such request.

6.2 Title Update. If required by Lender, Lender shall have received the mortgagee’s title
insurance policy for the Loan excepting from coverage only the permitted exceptions and adding
affirmative protection for those matters requested by Lender and shall have received before each
and every Advance (other than a disbursement solely for interest) subsequent to the initial Advance
date-down endorsements as requested by Lender to its title policy indicating that since the
preceding Advance, there has been no change in the status of title and no other exceptions not
theretofore approved by Lender. No Material Adverse Event shall have occurred affecting title to
the Real Property.

6.3 Construction. The Improvements are being and have been constructed to date
substantially in accordance with the Construction Documents, the Project Budget, and the Project
Schedule.

6.4 Casualty. The Improvements shall not have been materially damaged by any casualty,
unless Lender shall have received insurance proceeds in an amount deemed by Lender to be sufficient
for complete repair of the damage and that when added to the undisbursed balance of the Loan are
sufficient for completion of the Project in accordance with the Construction Documents.

6.5 Updated Appraisal. The disbursement requested shall not cause the outstanding
principal balance of the Loan to exceed the maximum loan-to-value ratio or loan to cost ratio
stated in Section 2.2 above. If requested by Lender, Lender shall have received an updated
appraisal. If an Event of Default exists, if Lender has reasonable cause to believe that the value
of the Real Property has been impaired for any

reason whatsoever, if an appraisal is required in order to comply with regulatory requirements, if
the appraisal is ordered in connection with an extension of the Maturity Date or a casualty loss to
the Improvements, then the cost of such appraisal shall be at Borrower’s expense; provided that
Borrower shall not be responsible for the cost of more than one appraisal annually. Otherwise,
such appraisal shall be conducted at the Lender’s expense.

6.6 Financials. No Material Adverse Event shall have occurred affecting Borrower. Lender
may require that Borrower provide it with satisfactory evidence that there is not pending against
Borrower a petition in bankruptcy, whether voluntary or otherwise, any assignment for the benefit
of creditors or petition seeking reorganization or arrangement pursuant to federal bankruptcy laws
or of any similar state law, or any other action brought pursuant to the aforesaid bankruptcy laws.
Upon request of Lender, Borrower shall supply Lender with a written certification stating that no
condition exists, which materially adversely affects the financial condition of Borrower, or the
Real Property. Lender may also conduct a credit investigation which Lender deems advisable or
order any and all credit reports upon Borrower, and such investigation or reports shall not reveal
any Material Adverse Event.

6.7 Construction. Borrower shall not have done or permitted anything to be done that would
materially and negatively affect the completion of the Project or the performance of any of the
Construction Contracts.

6.8 Compliance. Borrower shall have theretofore complied with all of its covenants and
agreements contained in this Agreement, the Note and the other Loan Documents, and all
representations and warranties of Borrower contained herein or in any other Loan Document shall be
true as of the date of disbursement as if first made on that date; and there shall not exist an
Event of Default nor shall there exist the occurrence of an event which with the passage of time or
notice, or both, would result in an Event of Default.

6.9 Contractors. For each proposed Project, Borrower shall have provided a list certified
by Borrower and General Contractor of all subcontractors with whom Borrower or Contractors have
contracted, a list certified by each subcontractor shown on such list containing all
subcontractor’s suppliers, and subcontractors, and evidence that all persons shown on such lists
have received payment for all work performed for the period covered by the previous disbursement
request, and that all such persons have executed appropriate lien waivers for such work and
materials furnished. Such evidence may include, but is not necessarily limited to, copies of
canceled checks, original invoices, and original lien waivers.

6.10 Mechanic’s Liens. Lender shall have received the lien waivers described in Sections 4
and 5. Lender shall not have received a notice of intent to file a mechanic’s lien and no
statement of lien or other mechanic’s lien shall have been recorded affecting all or any of the
Real Property.

6.11 Owners Equity. Lender shall have received evidence sufficient to indicate that
Borrower has invested into the Project the minimum Borrower’s Equity. If Lender has not received
sufficient evidence, Lender may require Borrower to invest such amounts and provide evidence of the
same as a condition to any Advance or may require Borrower to make a Borrower’s Deposit to be held
by Lender in the Collateral Account and disbursed prior to any Advances on the Loan.

6.12 Final Project Advance. In the case of each Project, Lender will have no obligation to
make the final Advance until the following conditions have been complied with, provided that all
other conditions in this Agreement for Advances have been complied with:

(a) The Improvements have been fully completed and equipped in accordance with the Project
Plans and Specifications free and clear of mechanics’ liens and security interest and are ready for
occupancy;

(b) Borrower shall have furnished to Lender “all risks” casualty insurance in form and amount
and with companies satisfactory to Lender in accordance with the requirements contained in the Loan
Documents;

(c) Borrower shall have furnished to Lender copies of all licenses and permits required by any
Governmental Authority having jurisdiction for the occupancy of the Improvements and the operation
thereof, including a permanent certificate of occupancy from the municipality in which the Project
is located;

(d) The Lessee shall have executed acknowledgment of acceptance of the Project in form and
substance acceptable to Lender;

(e) Borrower shall have furnished a survey covering the completed Improvements in compliance
with Section 3.5, at Lender’s option;

(f) All fixtures, furnishings, furniture, equipment and other property required for the
operation of the Project shall have been installed free and clear of all liens and security
interests, except in favor of Lender;

(g) Borrower shall have furnished to Lender copies of all final waivers of lien and sworn
statements from Contractors and material suppliers and an affidavit from the General Contractor in
accordance with the mechanic’s lien law of the State or as otherwise established by Lender;

(h) Borrower shall have furnished to Lender a certificate from the General Contractor and, at
Lender’s option, Borrower’s architect, or other evidence satisfactory to Lender stating that
(i) the Improvements have been completed in accordance with the Plans and Specifications, and
(ii) the Improvements as so completed comply with all applicable law;

(i) Lender shall have received a certificate from the Lender’s Inspector for the sole benefit
of Lender that the Improvements have been satisfactorily completed in accordance with the Project
Plans and Specifications; and

(j) Such other conditions as may be set forth in the Project Loan Agreement shall have been
satisfied.

Section 7. Representations and Warranties. Borrower represents and warrants to Lender that
as of the date of this Agreement and as of the date of each disbursement of the Loan proceeds:

7.1 Recitals. The recitals and statements of intent appearing in this Agreement are true,
correct and complete.

7.2 Organization. The Company is a corporation validly formed, existing and in good
standing under the laws of the state of Colorado.

7.3 Power and Authorization. Borrower has the full power to carry out its business now
being conducted. The execution, delivery and performance of all Loan Documents by Borrower, to the
extent to be executed, delivered or performed by Borrower: (a) have been duly authorized by all
necessary corporate or other action; (b) do not require the consent or approval of any other
person, regulatory authority or governmental body; and (c) do not conflict with, result in
violation of, or constitute a default under any provision of any agreement or other instrument
binding upon Borrower, or any law, governmental regulation, court decree or order applicable to
Borrower.

7.4 Enforceability. This Agreement constitutes, and any instrument or agreement required
hereunder to be given by Borrower when delivered will constitute, legal, valid and binding
obligations of Borrower, enforceable against Borrower in accordance with their respective terms,
subject to bankruptcy and insolvency laws affecting the rights of creditors generally.

7.5 Litigation and Claims. There exists no litigation or claim (including those for
past-due taxes) against Borrower or the Collateral which is pending, or for which Borrower has
received written notice, and no other event has occurred which may have a Material Adverse Effect
on Borrower’s financial condition or properties.

7.6

Financial Information. The financial statements of Borrower supplied to Lender disclosed
their true and complete financial condition as of the date of the statements, and there has been no
Material Adverse Event subsequent to the date of the most recent financial statements supplied to
Lender. Borrower does not have any material contingent obligations except as disclosed in such
financial statements.

7.7 Taxes. All tax returns and reports of Borrower that are or were required to be filed
have been filed, and all taxes, assessments and other governmental charges have been paid in full.

7.8 Location of Borrower’s Offices and Records. The principal place of business of
Borrower is located at 700 17th Street, Suite 1200 Denver, Colorado, 80202.

7.9 Information. All information heretofore or contemporaneously herewith furnished by
Borrower to Lender for the purposes of or in connection with this Agreement or any transaction
contemplated hereby is, and all information hereafter furnished by or on behalf of Borrower to
Lender will be, true, and accurate in every material respect on the dates which such information is
dated or certified; and none of such information is or will be incomplete by omitting to state any
amendment, modification or any material fact necessary to make such document information not
misleading.

7.10 Survival of Representations and Warranties. Each request by Borrower for an Advance
shall constitute an affirmation on the part of Borrower that the above representations and
warranties are true, correct and complete as of the time of such request. Borrower understands and
agrees that Lender is relying upon the above representations and warranties in making the Loan to
Borrower. Borrower further agrees that the foregoing representations and warranties shall be
continuing in nature and shall remain in full force and effect until such time as the Loan shall be
paid in full.

7.11 Ownership of Borrower. The ownership of Borrower is as set forth on Exhibit B
attached hereto and made a part hereof.

7.12 Business Loan. The Facility is solely for business purposes, and is not for personal,
family, household or agricultural purposes.

7.13 Subordinate Debt. The Company has received no loans from any Affiliate other than the
Subordinate Debt.

7.14 ERISA. The Borrower is not a party in interest to any plan defined or regulated under
ERISA, and the assets of the Borrower are not “plan assets” of any employee benefit plan covered by
ERISA or Section 4975 of the Internal Revenue Code.

Section 8. Affirmative Covenants. Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will perform the following:

8.1 Payment of Loan. Borrower shall promptly pay and perform when due all obligations of
Borrower contained herein or in another Loan Document.

8.2 Payment of Laborers and Materialmen. Promptly and fully pay all laborers and
materialmen for the Improvements in such amounts and at such times as necessary to prevent
mechanics liens upon the Real Property. Borrower shall, upon demand, defend and indemnify Lender
of and from all claims, suits or proceedings brought by any person allegedly unpaid for labor or
materials supplied to the Project. This indemnity shall survive repayment and satisfaction of this
Loan.

8.3 Completion of Improvements. Borrower shall proceed with construction without
interruption and promptly complete the Improvements not later than the original Maturity Date in a
good and workmanlike manner according to the Project Plans and Specifications, free from all liens
and encumbrances, and in accordance with the Construction Documents, and all applicable ordinances
and statutes, zoning laws, and all regulations and building codes of any governmental or municipal
agency having jurisdiction over the Improvements.

8.4 Enforcement of Contracts. Borrower shall strictly enforce the Construction Documents
to ensure that the Contractors are required to promptly and diligently perform all of their
obligations thereunder and in such a manner as to preserve Lender’s security in the Real Property
and Improvements.

8.5 Additional Contractor Lists. Borrower, promptly upon request of Lender from time to
time, shall furnish to Lender correct lists of the Contractors, all subcontractors, suppliers and
materialmen employed or retained in connection with the construction of the Improvements, together
with, if required by Lender, copies of each such contract. Each such list shall show the name,
address and telephone number of each such person, a general statement of the nature of the work to
be done, the labor and materials to be supplied, the names of materialmen if known, and the
approximate dollar value of such labor or work with respect to each. Lender shall have the right
to telephone or otherwise communicate with the Contractors, each subcontractor and materialman to
verify the facts disclosed by said list or by any disbursement request, or for any other purpose.

8.6 No Other Security Interests. No materials, equipment, fixtures or any other part of
the Improvements or articles of personal property placed in the Improvements shall be purchased or
installed under any security agreement or other arrangements wherein the seller reserves or
purports to reserve the right to remove or to repossess any such items or to consider them personal
property after their incorporation into the Improvements.

8.7 Maintenance of Licenses and Permits. Borrower shall maintain in full force and effect
all rights and licenses necessary to carry on its business, and all permits, licenses, consents and
approvals necessary for the construction, maintenance and operation of the Improvements. Borrower
shall maintain its present existence and shall maintain executive personnel and management at a
level of experience and ability equivalent to present personnel and management.

8.8 Litigation. Borrower shall promptly inform Lender in writing of: (a) any Material
Adverse Event; (b) all litigation and claims and all threatened litigation and claims affecting
Borrower which could materially affect the financial condition of Borrower; and (c) all litigation
concerning all or any portion of the Collateral. In the event that such litigation concerns or
affects any of the Collateral, Lender may engage counsel to make an appearance and defend Lender’s
interest in the Collateral, all at Borrower’s expense. In addition, in the event that such
litigation asserts a lien, including, without limitation, a mechanic’s lien, or a claim to title of
all or any portion of the Collateral, Borrower shall, at Lender’s election, also either post a bond
or deliver other cash security with Lender (or, at Lender’s option, with the court in the case of a
mechanic’s lien bond) in an amount of one-and-one-half times the amount of such claims within
thirty (30) days of the date of the initiation of such litigation (provided that if the lien is
recorded, such as a mechanic’s lien, then the bond or security shall be posted within thirty (30)
days of recording). Such bond or cash security shall be held by Lender (or, at Lender’s option,
with the court in the case of a mechanic’s lien bond) until the conclusion of such litigation and
may be used at Borrower’s election to settle such litigation. If not settled or concluded in favor
of Borrower, the bond or cash security may be used by Lender to either pay off such claimants or
may be applied against the Loan. If cash security is pledged, Borrower may use the cash to settle
any such dispute (provided that the funds will only be released upon a final and complete
settlement of the claims).

8.9 Financial Records. Borrower shall maintain its books and records in accordance with
the accounting principles historically used by Borrower, applied on a consistent basis, and
Borrower will permit Lender to examine and audit Borrower’s books and records at all reasonable
times. All books and records shall separately account for the income and expenses attributable to
the Real Property. Borrower shall deliver to Lender the following financial information, all of
which shall be in a form and content reasonably acceptable to Lender, on or before the date
specified below:

(a) Whenever requested and in any event within ninety (90) days after the end of each fiscal
year, Borrower shall furnish to Lender its (i) unqualified audited annual financial statements
prepared by a certified public accountant acceptable to Lender, (ii) a balance sheet, (iii)
statement of income and expenses, and (iv) statement of cash flows that include the results of the
financial operations of Borrower. To the extent that they comply with the requirements of this
section, Borrower may furnish to Lender the reports filed with the Securities and Exchange
Commission.

(b) Semi-annually and as soon as practicable and in any event within forty-five (45) days
after the end of each semi-annual period, Borrower will furnish a certified, internally-prepared
balance sheet, income statement and operating statements.

(c) Within ninety (90) days after each fiscal year, Borrower shall furnish a covenant
compliance certificate in the form of Exhibit A for the prior fiscal year certifying
compliance with the financial covenants set forth herein, together with a copy of all brokerage and
bank statements and supporting documentation used to support the certification.

(d) Within forty-five (45) days of filing with the Internal Revenue Service, Borrower shall
furnish a certified copy of its federal income tax returns, together with all K-1s, 1099s, sub
chapter S corporation and partnership income tax returns, W-2s and other schedules and exhibits,
and, if any extensions are filed, Borrower shall furnish Lender with a copy of any extensions
within five (5) days of filing the same with the Internal Revenue Service.

(e) Borrower shall furnish such additional reasonable information and statements, lists of
assets and liabilities, aging of receivables and payables, inventory schedules, budgets, forecasts,
tax returns, and other reports with respect to Borrower’s financial condition, the Real Property,
and business operations as Lender may reasonably request from time to time.

8.10 Insurance. In addition to the insurance required under any other Loan Document,
Borrower shall obtain, maintain or cause to be maintained and shall deliver to the Lender policies
of insurance, at its expense, providing the following:

(a) Policies of insurance evidencing bodily injury, death or property damage liability
coverages in amounts not less than $1,000,000.00 (combined single limit), and an excess/umbrella
liability coverage in an amount not less than $1,000,000.00 shall be in effect with respect to the
Borrower. Such policies must be written on an occurrence basis so as to provide blanket
contractual liability, broad form property damage coverage, and coverage for products and completed
operations.

(b) “Special Cause of Loss” insurance on the Improvements in an amount not less than the full
insurable value on a replacement cost basis of the insured Improvements and personal property
related thereto. During the construction period, such policy shall be written in the so-called
“Builder’s Risk Completed Value Non-Reporting Form” with no coinsurance requirement and shall
contain a provision granting the insured permission to occupy. Such policy shall not contain an
exclusion for terrorist losses.

(c) If applicable, evidence of worker’s compensation insurance coverage satisfactory to
Lender.

(d) If the Real Property, or any part thereof, lies within a “special flood hazard area” as
designated on maps prepared by the Department of Housing and Urban Development, a National Flood
Insurance Association standard flood insurance policy, plus insurance from a private insurance
carrier if necessary, for the duration of the Loan in the amount of the full insurable value of the
Improvements.

(e) Such other insurance as the Lender may require, which may include, without limitation,
errors and omissions and liability insurance with respect to the contractors, architects and
engineers, earthquake insurance, rent abatement and/or business loss.

All insurance policies shall (i) be issued by an insurance company having a rating of “A” VII
or better by A.M. Best Co., in the Best’s Rating Guide, (ii) name the Lender as an additional
insured on all liability insurance and as mortgagee and lender loss payee on all casualty,
builder’s risk or property damage insurance, (iii) provide that the Lender is to receive thirty
(30) days written notice prior to non-renewal or cancellation, (iv) be evidenced by a certificate
of insurance to be held by the Lender, and (v) be in form and amounts acceptable to the Lender.
Borrower will provide Lender with loss payee endorsements, non-contributing mortgagee’s
endorsements, or other endorsements as Lender may require. If any insurance policies are blanket
policies, they shall contain an agreed amount endorsement, in amounts reasonably approved by
Lender.

8.11 Insurance Reports. In addition to any reports required in the Deed of Trust,
Borrower, upon request of Lender, will deliver to Lender from time to time the policies or
certificates of insurance in form satisfactory to Lender, including stipulations that coverages
will not be cancelled or diminished without at least 30 days’ prior written notice to Lender. In
connection with all policies covering the Real Property, Borrower shall furnish to Lender, upon
request of Lender, reports on each existing insurance policy showing such information as Lender may
reasonably request, including, without limitation the following: (a) the name of the insurer; (b)
the names of all insureds and loss payees; (c) the risks insured; (d) the amount of the policy; (e)
the properties insured; (f) the then-current property values on the basis of which insurance has
been obtained, and the manner of determining those values; and (g) the expiration date of the
policy.

8.12 Other Agreements. Borrower shall comply in all material respects with all easements,
covenants, declarations, other agreements affecting the Real Property including, without
limitation, whether now or hereafter existing, between Borrower and any other party and notify
Lender immediately in writing of any default in connection with any other such agreement.

8.13 Taxes, Charges and Liens. Borrower shall discharge when due any of its other
obligations, including, without limitation, all assessments, taxes, governmental charges, levies
and liens of every kind and nature imposed upon Borrower or its properties, income or profits prior
to the date on which penalties would attach, and all lawful claims that, if unpaid, might become a
lien or charge upon any of Borrower’s properties, income or profits, including, but not limited to,
the Real Property; provided, however, Borrower will not be required to pay and discharge any such
assessment, tax, charge, levy, lien or claim that affects the Collateral so long as: (a) the
amount or legality of the same shall be contested in good faith by appropriate proceedings; (b)
Borrower promptly notifies Lender of the contest and keeps Lender informed as to the status of the
contest; (c) the contest and delay in payment of such tax would not, in Lender’s opinion,
jeopardize Lender’s security interest in or the value of the Collateral; (d) within thirty (30)
days of the date the same became due, or the filing of the lien, whichever is earlier, Borrower
shall either (i) have established, with Lender’s approval, on its books adequate reserves with
respect to such contested assessment, tax, charge, levy, lien or claim in accordance with
generally-accepted accounting practices, or (ii) if Lender has not approved the reserve, have
posted a bond in favor of Lender, issued by a surety acceptable to Lender, in an amount equal to
one and one-half of the amount of such lien; and (e) Borrower promptly pays all amounts ultimately
determined to be payable.

8.14 Operations. Borrower shall conduct its business affairs in a reasonable and prudent
manner and in compliance with all applicable federal, state and municipal laws, ordinances, rules
and regulations respecting its properties, charters, businesses and operations, all minimum funding
standards and other requirements of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and other laws applicable to Borrower’s employee benefit plans, if any. Borrower’s sole

business is the development, construction and rental of the Real Property. Borrower shall not
engage in any business other than the ownership, development, construction and rental of the Real
Property.

8.15 Inspection of Books. Borrower shall permit employees or agents of Lender, at its own
expense, at any reasonable time to inspect any and all Collateral and Borrower’s other properties
and to examine or audit Borrower’s books, accounts and records and to make copies and memoranda of
Borrower’s books, accounts and records. If Borrower now or at any time hereafter maintains any
records (including, without limitation, computer-generated records and computer software programs
for the generation of such records) in the possession of a third party, Borrower, upon reasonable
request of Lender, shall notify such party to permit Lender free access to such records at all
reasonable times and to provide Lender with copies of any records it may request, all at Borrower’s
expense.

8.16 Collateral Inspection.

(a) Borrower shall permit Lender and its representatives, including Inspector, to enter upon
the Real Property and observe the construction of the Improvements and all materials to be used in
construction thereof; permit them to examine the Real Property Construction Documents; all detailed
plans and shop drawings for the Improvements, and all of Borrower’s books, records, contracts and
bills with respect to the Improvements; and cause the subcontractors to cooperate with Lender in
this regard. Observation by Lender of construction shall be for the purpose of protecting the
security of the Loan only, and such observation shall in no way be construed as an acknowledgement
that the Construction Documents have been complied with or that the construction is free from
defect or in compliance with the terms of this Agreement.

(b) In addition, Inspector, at Borrower’s expense, shall make regular observations of the Real
Property as construction progresses and at all critical times during construction to determine that
the work is progressing in a timely manner and in compliance with the Project Schedule, to review
each request for a loan disbursement to reasonably ascertain that all construction to the date of
request has been completed to the extent indicated in Borrower’s request and to furnish Lender with
full and complete reports of the construction and provide Borrower with copies of such reports.

8.17 Bonds. In the event that a mechanic’s or other lien is filed encumbering the Real
Property, Borrower shall, in addition to the other requirements of the Loan Documents, immediately
notify Lender thereof and obtain for the benefit of Lender a corporate surety bond in an amount and
with sureties satisfactory to Lender or, at Lender’s election, a cash deposit to be deposited with
Lender, the Title Company or the court, at Lender’s option, in the amount specified in this
Agreement and in such a manner as to cause the lien to be satisfactorily released within thirty
(30) days of the date filed.

8.18 Correction of Defects. Borrower shall proceed diligently to correct material defects
and the completion of Improvements described in the Construction Contracts.

8.19 Lien Waivers. Borrower shall obtain lien waivers from all Contractors through the use
of check endorsements and lien waiver forms acceptable to Lender.

8.20 Financial Covenants.

(a) Except as otherwise noted, all capitalized terms in this paragraph and not otherwise
defined in this Agreement shall have the meanings determined in accordance with GAAP. In addition,
except as otherwise noted, all financial computations shall be made in accordance with GAAP.

(b) The Company shall not permit its Debt as of the last day of each fiscal year to exceed
three hundred percent (300%) of its Tangible Net Worth.

8.21 Leases. Borrower shall exercise its good faith, best efforts to comply with and
perform all of its obligations under each Approved Lease. Borrower shall provide to Lender, within
five (5) days of Borrower’s receipt, copies of any correspondence, notices, demands or proposed
amendments pertaining to all Approved Leases. If Lender so requests, Borrower shall from time to
time obtain from any Lessee and deliver to Lender estoppel certificates, and, if required in the
tenant’s leases, a subordination, non-disturbance and attornment agreement, all in a form and
substance approved by Lender.

8.22 Additional Assurances. Borrower shall make, execute and deliver to Lender such
promissory notes, mortgages, deeds of trust, security agreements, financing statements,
instruments, documents and other agreements as Lender or its attorneys may reasonably request to
evidence and secure the Loan and to perfect all security interests and liens in the Collateral.

Section 9. Negative Covenants. Borrower covenants and agrees with Lender as follows:

9.1 Continuity of Operations. Without the prior written consent of Lender, Borrower
(specifically the parent “Company”) shall not: (a) engage in any business activities substantially
different than those in which Borrower is presently engaged; (b) cease operation, liquidate, merge
or consolidate with any other entity; (c) change its management or turn over management of its
affairs to any other person; (d) change its name or operate its business under any assumed name, or
(e) change the state of its formation.

9.2 Change in Accounting Period. Without the prior written consent of Lender, Borrower
(specifically the parent “Company”) shall not change the times of commencement or termination of
their fiscal year or other accounting periods, or change its methods of accounting other than to
conform to generally-accepted accounting principles applied on a consistent basis.

9.3 Government Regulation. Borrower shall not be or become subject at any time to any law,
regulation, or list of any government agency (including, without limitation, the U.S. Office of
Foreign Asset Control list) that prohibits or limits Lender from making any advance or extension of
credit to Borrower or from otherwise conducting business with Borrower, or fail to provide
documentary and other evidence of Borrower’s identity as may be requested by Lender at any time to
enable Lender to verify Borrower’s identity or to comply with any applicable law or regulation,
including, without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

9.4 Subordinate Debt. Borrower shall receive no loan from any Affiliate, other than the
Subordinate Debt, without the prior written consent of Lender. Borrower shall not amend or modify
any of the promissory notes evidencing the Subordinate Debt (as detailed in “Exhibit C”) without
the prior written consent of Lender.

9.17 Merger. Borrower shall not merge into or consolidate with any Person or otherwise
dispose of substantially all of its assets other than in the ordinary course of business.

Section 10. Events of Default. Each or any one of the following shall constitute an Event
of Default under this Agreement.

10.1 Event of Default. The occurrence of any one or more of the following events or
conditions shall constitute an “Event of Default” under this Agreement.

(a) Any failure to pay any principal or interest under the Note when the same becomes due and
payable and such failure continues for ten (10) days, or the failure to pay any other sum due under
the Note, this Agreement or any Loan Document when the same shall become due and payable and such
failure continues for ten (10) days after notice thereof to Borrower.

(b) Any failure or neglect to perform or observe, or default under, any of the covenants,
conditions or provisions of this Agreement (other than a failure or neglect described in one or
more of the other provisions of this Section 10) and such failure or neglect either cannot be
remedied or, if it can be remedied, it continues unremedied for a period of thirty (30) days after
notice thereof to Borrower.

(c) The occurrence of an Event of Default, or a default that remains uncured after the
expiration of any applicable grace period, under any other Loan Document.

(d) Any warranty, representation or statement contained in this Agreement, in the Note or in
any Loan Document or any other document or instrument executed or delivered in connection with the
Loan, or made or furnished to Lender by or on behalf of Borrower, shall be or shall prove to have
been false when made or furnished.

(e) The filing by Borrower (or against Borrower to which Borrower acquiesces or that is not
dismissed within

sixty (60) days after the filing thereof) of any proceeding under the federal bankruptcy laws now
or hereafter existing or any other similar statute now or hereafter in effect; the entry of an
order for relief under such laws with respect to Borrower; or the appointment of a receiver,
trustee, custodian or conservator of all or any part of the assets of Borrower.

(f) The insolvency of Borrower or the execution by Borrower of an assignment for the benefit
of creditors; or the convening by Borrower of a meeting of their creditors, or any class thereof,
for purposes of effecting a moratorium upon or extension or composition of its debts; or the
failure of Borrower to pay their debts as they mature; or if Borrower is generally not paying its
debts as they mature.

(g) The admission in writing by Borrower that it is unable to pay its debts as they mature or
that it is generally not paying its debts as they mature.

(h) The dissolution of Borrower.

(i) Any levy or execution upon, or judicial seizure of any portion of any Collateral.

(j) Any attachment or garnishment of, or the existence or filing of any lien or encumbrance,
other than any lien or encumbrance permitted by a Deed of Trust, against any portion of any
Collateral that is not removed or released within thirty (30) days after its creation.

(k) The institution of any legal action or proceedings to enforce any lien or encumbrance upon
any portion of any Collateral or security for the Loan, that is not dismissed within thirty (30)
days after its institution other than for mechanics liens for which a bond has been posted as
provided herein.

(l) The occurrence of any event of default under any document or instrument given by Borrower
or any Affiliate in connection with any other indebtedness or obligation of Borrower or any
Affiliate owed to Lender.

(m) Any action shall be taken by any Governmental Authority that would materially and
adversely affect timely substantial completion of the Project by the Completion Date or the use or
occupation of the Project for their intended purpose and such action shall not have been reversed
or remedied within a period of thirty (30) days from the taking thereof.

(n) If Borrower fails to construct the Improvements in substantial accordance with the Project
Plans and Specifications and applicable law and such failure is not cured within twenty (20) days
after written notice of such default by Lender to Borrower or if the failure is for a reason beyond
the control of Borrower, then for a reasonable time not to exceed sixty (60) days, so long as
Borrower is diligently pursuing a cure.

(o) If any Governmental Authority should declare a default under any subdivision improvement
or development agreement or otherwise refuses to issue any permits necessary for the development of
any Project or any certificates of occupancy required for the occupancy of any Project as a result
of any action or failure to act attributable to Borrower.

(p) A transfer, sale or conveyance of any of the Collateral prohibited under any of the Loan
Documents.

(q) Any direct or indirect transfer of any legal or beneficial interests in any Operating
Subsidiary that is the maker of a Note, unless after giving effect to such transfer the Company
continues to own not less than fifty-one percent (51%) of the legal and beneficial interests in,
and continues to control, such Operating Subsidiary.

Section 11. Effect of an Event of Default; Remedies. If any Event of Default shall occur,
Lender, at Lender’s option, may cease making any Advances under any Loan and/or may accelerate the
Obligations, at Lender’s option, to become immediately due and payable. Upon an Event of Default,
Lender shall have no obligation to review and approve any new proposed Projects. Upon an Event of
Default, all sums due under the Loan Documents shall accrue interest at a rate (“Default Rate”) of
interest equal to 18% per annum. In addition to accelerating the Obligations due and payable under
the Loan, Lender may exercise any other remedy it may have under this Agreement, any Loan Document,
or any Security Document, or those available at law or in equity or by statute, including, without
limitation, the rights of specific performance. Lender may elect to enforce the Loan or any of its
rights or remedies successively, concurrently, or consecutively, in any order and at any time or
from time to time as it may so determine in its sole and absolute discretion. No failure or delay
on the part of Lender in exercising any right, power or privilege under this Agreement, the Loan
Documents or under the law, and no course of dealing between Borrower and Lender shall operate as a
waiver hereof or thereof, nor

shall any single or partial exercise of any right, power or privilege hereunder preclude any other
or further exercise of any other right, power or privilege. Borrower hereby waives any defense or
claim of marshalling or that Lender must proceed against any particular Collateral in any
particular order or at any particular time. Without limiting the foregoing, upon the occurrence of
an Event of Default, Lender shall have the right, acting on its own behalf or through a court
appointed receiver which may be appointed upon ex parte application without notice to Borrower, to
take possession of the Collateral and perform any and all work it deems advisable or necessary to
protect the Improvements and complete them substantially in accordance with the Project Plans and
Specifications. Borrower hereby irrevocably constitutes and appoints Lender and/or any court
appointed receiver its attorney-in-fact with full power and authority upon the occurrence of an
Event of Default to do all or any of the following: (a) take possession of, protect and complete
the Improvements; (b) use funds not disbursed pursuant to the Loan for the purpose of completing
the Improvements and payment of costs related thereto; (c) make such additions, changes and
corrections in the Construction Contracts as deemed necessary or desirable by Lender to complete
the Project without loss to Lender; (d) employ such contractors, subcontractors, agents, architects
and other persons that Lender deems necessary or desirable to complete the Project; (e) pay, settle
or compromise all existing invoices, charges and claims relating to the Real Property and/or the
Improvements as it deems necessary for completion of the Improvements and clearance of title to the
Real Property for protection of its interest; (f) prosecute and defend all actions and proceedings
in connection with construction of the Improvements and apply the proceeds of any judgment in any
such action against any of the Obligations as it determines in its sole discretion; (g) execute,
acknowledge and deliver all instruments and documents in the name of Borrower and do and perform
all acts in the name of Borrower that Lender deems necessary or appropriate to complete the
construction of the Improvements; (h) lease the Real Property and execute and deliver leases in the
name of Borrower. Nothing contained in this Section shall prohibit Lender from altering the
Construction Contracts to effect a reduction of the cost of any item therein when in the exercise
of reasonable judgment Lender determines that such action is necessary to provide for the sale of
all or a portion of the Improvements or to protect or enhance the value of the Improvements or Real
Property as security for satisfaction of the Obligations. No delay or failure of Lender in the
exercise of any right or remedy shall be deemed a waiver of any further exercise of such right or
remedy or of any other rights of Lender as to any security for the Obligations, and shall not
affect the rights of Lender to enforce payment of the Loan and to recover judgment for any portion
thereof remaining unpaid. The rights and remedies herein expressed are cumulative and not
exclusive of any right or remedy that may be available to Lender under its Loan Documents or by law
or otherwise. Borrower specifically waives any obligation of Lender, if any, to accept a deed in
lieu or to pursue any Collateral at any particular time.

Section 12. Action Upon Agreement.

12.1 No Third Party Beneficiaries. This Agreement is made for the sole protection and
benefit of the parties hereto and no other person or organization shall have any right of action
hereon.

12.2 Integration. The Loan Documents constitute the entire understanding and agreement
between Borrower and Lender with respect to the transactions arising in connection with the Loan
and supersede all prior written or oral understandings and agreements between Borrower and Lender
with respect to the matters addressed in the Loan Documents. Borrower hereby acknowledges that,
except as incorporated in writing in the Loan Documents, there are not, and were not, and no
persons are or were authorized by Lender to make, any representations, understandings,
stipulations, agreements or promises, oral or written, with respect to the matters addressed in the
Loan Documents. Borrower hereby represents, warrants and acknowledges that counsel of Borrower’s
own choosing has advised Borrower in the negotiation, execution and delivery of the Loan Documents.

12.3 Modifications. No promise, representation, warranty or agreement made subsequent to
the execution and delivery of this Agreement by either party hereto, and no revocation, partial or
otherwise, or change, amendment or addition to, or alteration or modification of, this Agreement
shall be valid unless the same shall be in writing signed by all parties hereto.

12.4 No Joint Venture. Lender and Borrower each have separate and independent rights and
obligations under this Agreement. Nothing contained herein shall be construed as creating, forming
or constituting any partnership, joint venture, merger or consolidation of Borrower and Lender for
any purpose or in any respect.

Section 13. General. 

13.1 Setoff. Borrower hereby grants to Lender a security interest in, and Lender is hereby
authorized at any time and from time to time, without prior notice to Borrower (any such notice
being expressly waived by the Borrower), to set off and apply, any and all accounts and deposits
(general or special, time or demand, provisional or final) at any time held by Lender, or any
branch, subsidiary, or affiliate of Lender, and all other indebtedness at any time owing by Lender
or any branch, subsidiary, or affiliate of Lender, to or for the credit or the account of Borrower
(including all accounts held jointly with another, but excluding any IRA or Keogh accounts, or any
trust accounts for which a security interest would be prohibited by law), against any and all of
the Obligations of Borrower now or hereafter existing under the Loan Documents. Such security
interest may be enforced, and such right of setoff may be exercised, by Lender irrespective of (i)
whether or not Lender shall have made any demand under the Loan Documents and (ii) whether such
Obligations are contingent, matured, or unmatured. Lender agrees promptly to notify Borrower after
any such setoff and application, provided that the failure to give such notice shall not affect the
validity of such setoff and application. The rights of Lender under this paragraph are in addition
to other rights and remedies (including, without limitation, other rights of setoff) which Lender
may have.

13.2 Survival and Severability. This Agreement shall survive the making of the Loans and
shall continue so long as any part of the Loans, or any extension or renewal thereof, remains
outstanding. If any provision of this Agreement is held to be invalid, illegal, or unenforceable
in

any jurisdiction, the validity, legality and enforceability of that provision in any other
jurisdiction, and the validity, legality and enforceability of the remaining provisions hereof in
all jurisdictions, shall not be affected or impaired in any way.

13.3 Discretionary Rights. All rights, powers and remedies granted Lender herein, or
otherwise available to Lender, are for the sole benefit and protection of Lender, and Lender may
exercise any such right, power or remedy at its option and in its sole and absolute discretion
without any obligation to do so. In addition, if, under the terms hereof, Lender is given two or
more alternative courses of action, Lender may elect any alternative or combination of
alternatives, at its option and in its sole and absolute discretion. All monies advanced by Lender
under the terms hereof and all amounts paid, suffered or incurred by Lender in exercising any
authority granted herein, including reasonable attorneys’ fees, shall be secured by the Security
Documents, shall bear interest at the highest rate payable on the Loans until paid, and shall be
due and payable by Borrower to Lender immediately without demand.

13.4 Standard of Review. Whenever any of the Loan Documents require Lender’s consent or
approval, such consent or approval may be granted or withheld by Lender in Lender’s sole and
absolute discretion, for any reason or no reason whatsoever, unless the context of such sentence
specifically requires Lender to act reasonably. In such cases, it shall be reasonable for Lender
to act in accordance with the terms of the Loan Documents or as would otherwise be reasonable for
national banks located in Denver, Colorado. In either case, Lender may impose additional
conditions and requirements prior to granting such consents or approvals.

13.5 Indemnity. Borrower shall indemnify and hold Lender harmless from and against all
claims, costs, expenses, actions, suits, proceedings, losses, damages and liabilities of any kind
whatsoever, including but not limited to attorneys’ fees and expenses, arising out of any matter
relating, directly or indirectly, to the Loans, to the ownership, development, construction, or
sale of the Real Property and Improvements, whether resulting from internal disputes of Borrower,
or whether involving other third persons or entities, or out of any other matter whatsoever related
to any of the Loan Documents, or any property encumbered thereby, but excluding any claim or
liability which arises as the direct result of the gross negligence or willful misconduct of
Lender. This indemnity provision shall continue in full force and effect and shall survive not
only the making of the Loans and the Advances but shall also survive the repayment of the Loans and
the performance of all of Borrower’s other obligations hereunder.

13.6 Joint and Several. If Borrower consists of more than one person or entity their
liability shall be joint and several. The provisions hereof shall apply to the parties according
to the context thereof and without regard to the number or gender of words or expressions used.

13.7 Time of Essence. Time is expressly made of the essence of this Agreement.

13.8 Notices. All notices required or permitted to be given hereunder shall be in writing
and may be given in person or by United States mail, by delivery service or by telecopy
transmission. Any notice directed to a party to this Agreement shall become effective upon the
earliest of the following: (a) actual receipt by that party; (b) delivery to the designated
address of that party, addressed to that party; (c) if given by certified or registered United
States mail, two (2) Business Days after deposit with the United States Postal Service, postage
prepaid, addressed to that party at its designated address; or (d) if sent by telecopier when
transmitted to and received at the appropriate telecopier number. The initial designated address
of a party shall be the address of that party shown below or such other address as that party, from
time to time, may specify by notice to the other parties.

	 	 	 	 	 
	Borrower:
	 	Across America Real Estate Corp.

	 
	 	700 17th Street, Suite 1200
	 
	 	Denver, Colorado  80202

	 
	 	Attn: James W. Creamer, III

	 
	 	Telecopier No.: (303) 893-1008

	 
	 	Telephone No.: (303) 893-1003

	Lender:
	 	United Western Bank

	 
	 	700 17th Street, Suite 100
	 
	 	Denver, Colorado 80202

	 
	 	Attn:  David Livingston

	 
	 	Telecopier No.: (720) 932-3996

	 
	 	Telephone No.: (720) 956-6517

	With a copy to:
	 	United Western Bank

700 17th Street, Suite 100

Denver, Colorado 80202

Attn: General Counsel

Telephone No.: (720) 956-6500

13.9 Payment of Costs. Borrower shall pay upon demand all costs and expenses arising from
the preparation of this Agreement, the closing of the Loans, the making of Advances and the
monitoring and administration of the Loans, including but not limited to title insurance premiums,
other title company charges, recording and filing fees, costs of Uniform Commercial Code searches,
Lender’s in-house and outside attorneys’ fees and expenses, if any, Lender’s documentation fee,
Lender’s inspection fees, environmental review fees, appraisal and appraisal review fees, any
intangible or recording taxes and any other charges that may be imposed on Lender as a direct
result of this transaction.

13.10 Choice of Law. This Agreement shall be governed by and construed according to the
laws of the State of Colorado, without giving effect to conflict of laws principles.

13.11 Successors. Except as otherwise provided herein, this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their successors and assigns.

13.12 Headings. The headings or captions of sections and paragraphs in this Agreement are
for reference only, do not define or limit the provisions of such sections or paragraphs, and shall
not affect the interpretation of this Agreement.

13.13 Assignments and Participations and Information Sharing. Lender, at any time, shall
have the right to sell, assign, transfer, or negotiate the Loan and the Loan Documents, in whole or
in part, and to grant participation interests in the Loan and the Loan Documents. Borrower hereby
acknowledges and agrees that any such disposition shall give rise to a direct obligation of
Borrower to each such assignee or participant. Lender is authorized, without any limitations
whatsoever, to share with any actual or prospective assignee or participant, any Lender’s
affiliate, any derivative counter parties and any rating agencies, any customer information or
document that Lender may have or obtain regarding the Loans, the Loan Documents, the Projects, or
Borrower. In addition, Lender is authorized, without any limitations whatsoever, to furnish such
information to affiliates of Lender.

13.14 Counterparts. This Agreement may be executed in counterparts, all of which executed
counterparts shall together constitute a single document. Signature pages may be detached from the
counterparts and attached to a single copy of this Agreement to physically form one document.

13.15 Partial Payments. Borrower agrees that partial payments of any installment or
amount due to Lender, even if indorsed and negotiated by Lender, shall not constitute an accord and
satisfaction of the full installment or amount due unless Borrower follows the following
procedures: Any proposal by Borrower for a partial payment/accord and satisfaction must be
presented directly to the officer handling the administration of the Loan, together with
correspondence specifically requesting that Borrower be relieved of the balance of the obligation,
and stating the specific dollar amount of the requested release. Lender may unilaterally reject
such proposal. Such proposal shall only be deemed accepted if such officer responds to Borrower in
writing specifically relieving Borrower of the balance of the obligation by identifying the amount
forgiven in a specific dollar amount. In the event Lender cashes an instrument under which
Borrower asserts an accord and satisfaction, Lender shall have one (1) year from the date the
instrument was negotiated to return the partial payment and rescind the accord and satisfaction.

13.16 USA PATRIOT ACT NOTIFICATION. The following notification is provided to Borrower
pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify and record information that identifies each person or entity that
opens an account, including any deposit account, treasury management account, loan, other extension
of credit, or other financial services product. What this means for Borrower: When Borrower opens
an account, if Borrower is an individual Lender will ask for Borrower’s name, taxpayer
identification number, residential address, date of birth, and other information that will allow
Lender to identify Borrower, and if Borrower is not an individual Lender will ask for Borrower’s
name, taxpayer identification number, business address, and other information that will allow
Lender to identify Borrower. Lender may also ask, if Borrower is an individual to see Borrower’s
driver’s license or other identifying documents, and if Borrower is not an individual to see
Borrower’s legal organizational documents or other identifying documents.

13.17 Inconsistencies Among Loan Documents. In the event of any inconsistencies between
the terms of this Agreement and any terms of any of the other Loan Documents, the terms selected by
Lender in its sole subjective discretion shall be controlling.

13.18 WAIVER OF SPECIAL DAMAGES. BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY
LAW, ANY RIGHT BORROWER MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION OR PROCEEDING
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

13.19 JURY WAIVER. BORROWER AND LENDER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED
UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO
THIS DOCUMENT, ANY OTHER LOAN DOCUMENT OR ANY RELATIONSHIP BETWEEN LENDER AND BORROWER. THIS
PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE FINANCING DESCRIBED HEREIN OR IN THE
OTHER LOAN DOCUMENTS.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

1

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

“Lender”

UNITED WESTERN BANK

By: /s/

	 	 	 
	 	 	Name:	 	 	David R. Livingston
	 	 	Title:	 	 	President- Denver Region

“Borrower”

ACROSS AMERICA REAL ESTATE CORP.,

a Colorado corporation

By: /s/   Name:

Title:

2

EXHIBIT A

FORM OF COMPLIANCE CERTIFICATE

________________, 200__

United Western Bank

700 17th Street, Suite 100

Denver, Colorado 80202

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement (the “Loan Agreement”) dated as of      ,
2007, by and between Across America Real Estate Corp., a Colorado corporation (“Borrower”), and
United Western Bank (“Bank”). All capitalized terms used herein and not otherwise defined shall
have the meanings given to such terms in the Credit Agreement.

Borrower hereby certifies, represents and warrants to Bank that (i) the representations and
warranties of Borrower set forth in the Credit Agreement are true and correct on and as of the date
hereof; (ii) the proceeds of the Advances requested have been used only for the purposes set forth
in the Credit Agreement; and (iii) no condition or event has occurred that is an Event of Default
or potential Event of Default.

Borrower hereby further certifies that as of      , 200     (the “Determination Date”) and as
computed on the worksheet attached hereto:

The ratio of Borrower’s Debt to Tangible Net Worth is      .     : 1.00, compared to not more than
3.0 :1.00 as required by the Credit Agreement.

ACROSS AMERICA REAL ESTATE CORP., a Colorado
corporation

By:

Name:

Title:

3

EXHIBIT B

OWNERSHIP OF BORROWER (In Excess of 15%)

Across America Real Estate Corp. 

Represents 51% of Borrowing Entity

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount and	 	 	 	 	 	 	 	 
	 	 	 	 	Nature of	 	 	 	 	 	 	 	 
	 	 	 	 	Beneficial	 	 	 	Percent of	 	 	 	 
	Name and Address of Beneficial Owner	 	Ownership	 	 	 	Class	 	 	 	 
	G. Brent Backman

	 	 
	 	 	10,781,435	 	 	 
	 	 
	 	 	67.2	 	 	 	%	 
	
 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	700 Seventeenth

Street, Suite 1200

	 	

	 	

	 	

	 	

	 	

	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Denver, Colorado 80202

	 	

	 	

	 	

	 	

	 	

	 	

	 

	 	

	 	

	 	

	 	

	 	

	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sarmat, LLC

	 	 
	 	 	3,140,000	 	 	 
	 	 
	 	 	19.6	 	 	 	%	 
	
 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	700 Seventeenth

Street, Suite 1200

	 	

	 	

	 	

	 	

	 	

	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Denver, Colorado 80202

	 	

	 	

	 	

	 	

	 	

	 	

	 

	 	

	 	

	 	

	 	

	 	

	 	

_______________________________  (TBD Development Partner) 

Represents 49% of Borrowing Entity

	 	 	 	 	 	 	 	 	 
	 	 	Amount and	 	 	 	 	 	 
	 	 	Nature of	 	 	 	 	 	 
	 	 	Beneficial	 	Percent of	 	 	 	 
	Name and Address of Beneficial Owner	 	Ownership	 	Class	 	 	 	 
	
 
	 	 	 	 	 	 	%	 
	
 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	
 
	 	 	 	 	 	 	%	 
	
 
	 	 	 	 	 	 	 	 

4

EXHIBIT C

SUBORDINATE DEBT

	(1)	 	Revolving Note in the amount of $3,500,000 between Across America Real Estate Corp. (Maker)
and BOCO Investments, LLC (“Holder”) dated September 28, 2006, and

As amended on March 30, 2007 in order to re-define “Senior Debt” to include United Western Bank.

	(2)	 	Revolving Note in the amount of $3,500,000 between Across America Real Estate Corp. (Maker)
and GDBA Investments, LLLP (“Holder”) dated September 28, 2006, and

As amended on March 30, 2007 in order to re-define “Senior Debt” to include United Western Bank.

	(3)	 	Senior Subordinated Note in the amount of $3,500,000 between Across America Real Estate Corp.
(Maker) and BOCO Investments, LLC (“Holder”) dated September 28, 2006, and

As amended on March 30, 2007 in order to re-define “Senior Debt” to include United Western Bank.

	(4)	 	Senior Subordinated Note in the amount of $3,500,000 between Across America Real Estate Corp.
(Maker) and BOCO Investments, LLC (“Holder”) dated September 28, 2006, and

As amended on March 30, 2007 in order to re-define “Senior Debt” to include United Western Bank.

5ex_10-1.htm

    
      

      exhibit
        10.1
Execution Version

      

      

      

      

      

      

      

      

      

      Second
        Amendment

      

      to

      

      Credit
        Agreement

      

      Among

      

      Legacy
        Reserves LP

      as
        Borrower,

      

      BNP
        Paribas,

      as
        Administrative Agent,

      

      and

      

      The
        Lenders Signatory Hereto

      

      

      Effective
        as of May 3, 2007

       

      
 

      
        
          3240808v.1

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Second
        Amendment to Credit Agreement

      

      This
        Second Amendment to Credit Agreement (this “Second Amendment”) executed
        effective as of the 3rd day of May, 2007 (the “Second Amendment Effective
        Date”) is among Legacy Reserves LP, a limited partnership formed under the
        laws of the State of Delaware (the “Borrower”); each of the undersigned
        guarantors (the “Guarantors”, and together with the Borrower, the
“Obligors”); each of the Lenders that is a signatory hereto; and BNP
        Paribas, as administrative agent for the Lenders (in such capacity, together
        with its successors, the “Administrative Agent”).

      

      Recitals

      

      A.           The
        Borrower, the Administrative Agent and the Lenders are parties to that certain
        Credit Agreement dated as of March 15, 2006 (as amended to date, the “Credit
        Agreement”), pursuant to which the Lenders have made certain credit
        available to and on behalf of the Borrower.

      

      B.           The
        Borrower has requested and the Administrative Agent and the Lenders have
        agreed
        to amend certain provisions of the Credit Agreement.

      

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

      

      Section
        1.                                Defined
        Terms.  Each capitalized term which is defined in the Credit
        Agreement, but which is not defined in this Second Amendment, shall have
        the
        meaning ascribed to such term in the Credit Agreement.  Unless
        otherwise indicated, all section references in this Second Amendment refer
        to
        the Credit Agreement.

      

      Section
        2.                      Amendments
        to Credit Agreement.

      

      2.1           Definitions.  Section
        1.02 is hereby amended by amending and restating the following definition
        of
“Agreement” as follows:

      

      “
        ‘Agreement’ means this Credit Agreement, as amended by that certain First
        Amendment to Credit Agreement, dated as of July 7, 2006 and the Second Amendment
        to Credit Agreement, dated as of May 3, 2007, and as the same may from time
        to
        time be further amended, modified, supplemented or restated.”

      

      2.2    Annex
        I.  Annex I is hereby amended and restated in its entirety with
        the Annex I attached hereto.

      

      Section
        3.                      Assignment
        to New Lender; Borrowing Base.

      

      3.1    New
        Lender.  For
        an agreed consideration, each of the Administrative Agent and

       

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-2

          
            

          

        

        
          
          

        

         

        the
          Lenders party to the original Credit Agreement hereby irrevocably sells
          and
          assigns to Wachovia Bank, National Association (the “New Lender”), and
          the New Lender, by its signature hereto, hereby irrevocably purchases and
          assumes from the Administrative Agent and the other Lenders, subject to
          and in
          accordance with the Credit Agreement, as of the Second Amendment Effective
          Date
          (i) the Administrative Agent’s and the other Lenders’ rights and obligations in
          their capacities as Lenders under the Credit Agreement and any other documents
          or instruments delivered pursuant thereto to the extent related to the
          amount
          and percentage interest identified on the attached Annex I, of such
          outstanding rights and obligations of the Administrative Agent and the
          other
          Lenders under the Credit Agreement and (ii) to the extent permitted to
          be
          assigned under applicable law, all claims, suits, causes of action and
          any other
          right of the Administrative Agent and the other Lenders against any Person,
          whether known or unknown, arising under or in connection with the Credit
          Agreement, any other documents or instruments delivered pursuant thereto
          or the
          loan transactions governed thereby or in any way based on or related to
          any of
          the foregoing, including contract claims, tort claims, malpractice claims,
          statutory claims and all other claims at law or in equity related to the
          rights
          and obligations sold and assigned pursuant to clause (i)
          above.

      

      

      3.2           Borrowing
        Base.  For the period from and including the Second Amendment
        Effective Date to but excluding the next Redetermination Date, the amount
        of the
        Borrowing Base shall be equal to $150,000,000.  Notwithstanding the
        foregoing, the Borrowing Base may be subject to further adjustments from
        time to
        time pursuant to Section 8.13(c) or Section 9.12(d).

      

      Section
        4.                      Conditions
        Precedent.  The effectiveness of this Second Amendment is subject
        to the receipt by the Administrative Agent of the following documents and
        satisfaction of the other conditions provided in this Section 4, each of
        which shall be reasonably satisfactory to the Administrative Agent in form
        and
        substance:

      

      4.1           Second
        Amendment.  The Administrative Agent shall have received multiple
        counterparts as requested of this Second Amendment from each
        Lender.

      

      4.2           Notes.  The
        Administrative Agent shall have received a Note payable to the order of each
        Lender in the amount of such Lender’s Commitment after giving effect to the
        assignment pursuant to Section 3, duly executed and delivered by Borrower,
        to be
        dated as of the Second Amendment Effective Date.

       

      4.3           No
        Default.  No Default or Event of Default shall have occurred and
        be continuing as of the Second Amendment Effective Date.

      

      Section
        5.                      Representations
        and Warranties; Etc.  Each Obligor hereby affirms:  (a)
        that as of the date of execution and delivery of this Second Amendment, all
        of
        the representations and warranties contained in each Loan Document to which
        such
        Obligor is a party are true and correct in all material respects as though
        made
        on and as of the Second Amendment Effective Date (unless made as of a specific
        earlier date, in which case, was true as of such date); and (b) that after
        giving effect to this Second Amendment and to the transactions

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-3

          
            

          

        

        
          
          

        

         

        contemplated
          hereby, no Defaults exist under the Loan Documents or will exist under
          the Loan
          Documents.

      

      

      Section
        6.                      Miscellaneous.

      

      6.1           Confirmation.  The
        provisions of the Credit Agreement (as amended by this Second Amendment)
        shall
        remain in full force and effect in accordance with its terms following the
        effectiveness of this Second Amendment.

      

      6.2           Ratification
        and Affirmation of Obligors.  Each of the Obligors hereby
        expressly (i) acknowledges the terms of this Second Amendment, (ii) ratifies
        and
        affirms its obligations under the Guaranty Agreement and the other Security
        Instruments to which it is a party, (iii) acknowledges, renews and extends
        its
        continued liability under the Guaranty Agreement and the other Security
        Instruments to which it is a party and agrees that its guarantee under the
        Guaranty Agreement and the other Security Instruments to which it is a party
        remains in full force and effect with respect to the Indebtedness as amended
        hereby.

      

      6.3           Counterparts.  This
        Second Amendment may be executed by one or more of the parties hereto in
        any
        number of separate counterparts, and all of such counterparts taken together
        shall be deemed to constitute one and the same instrument.

      

      6.4           No
        Oral Agreement.  This written Second Amendment, the Credit
        Agreement and the other Loan Documents executed in connection herewith and
        therewith represent the final agreement between the parties and may not be
        contradicted by evidence of prior, contemporaneous, or unwritten oral agreements
        of the parties.  There are no subsequent oral agreements between the
        parties.

      

      6.5           Governing
        Law.  This Second Amendment (including, but not limited to, the
        validity and enforceability hereof) shall be governed by, and construed in
        accordance with, the laws of the State of Texas.

      IN
        WITNESS WHEREOF, the parties hereto have caused this Second Amendment to
        be duly
        executed effective as of the date first written above.

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-4

          
            

          

        

        
          
          

        

      

      

      
        	 BORROWER:	
                LEGACY
                  RESERVES LP

                 

                By: Legacy Reserves GP, LLC, its
                  general partner

              	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Steven
                H. Pruett	 
	 	 	Steven
                H. Pruett	 
	 	 	
                President,
                  Chief Financial Officer

                and Secretary

              	 
	 	 	 	 

        	 GUARANTORS:	
                LEGACY
                  RESERVES OPERATING LP

                 

                By: Legacy Reserves Operating GP
                  LLC, its general partner

              	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Steven
                H. Pruett	 
	 	 	Steven
                H. Pruett	 
	 	 	
                President,
                  Chief Financial Officer

                and Secretary 

              	 
	 	 	 	 

      

      
        	 	LEGACY
                RESERVES OPERATING GP LLC	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Steven
                H. Pruett	 
	 	 	Steven
                H. Pruett	 
	 	 	
                President,
                  Chief Financial Officer

                and Secretary

              	 

      

      
        	 	 	 	 

      

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-5

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	LEGACY
                RESERVES SERVICES, INC.	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Steven
                H. Pruett	 
	 	 	Steven
                H. Pruett	 
	 	 	
                President,
                  Chief Financial Officer

                and Secretary

              	 
	 	 	 	 

      

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-6

          
            

          

        

        
          
          

        

      

      

        	 ADMINISTRATIVE
                AGENT:	
                BNP
                  PARIBAS

                as Administrative Agent and Lender

              	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Russell
                Otts	 
	 	 	Russell
                Otts	 
	 	 	Vice
                President	 
	 	 	 	 

      

      
        	
                 

              	
                By:
                  

              	/s/ Robert
                Long	 
	 	 	Robert
                Long	 
	 	 	Vice
                President	 
	 	 	 	 

      

       

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-7

          
            

          

        

        
          
          

        

      

       

      
        	 LENDERS:	BANK
                OF AMERICA N.A.	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Charles
                W. Patterson	 
	 	 	Charles
                W. Patterson	 
	 	 	Managing
                Director 	 
	 	 	 	 

      

       

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-8

          
            

          

        

        
          
          

        

      

       

      
        	 	COMERICA
                BANK	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Matthew
                J. Purchase	 
	 	 	Matthew
                J. Purchase	 
	 	 	Vice
                President	 
	 	 	 	 

      

       

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-9

          
            

          

        

        
          
          

        

      

       

      
        	 	KEYBANK
                N.A.	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Thomas
                Rajan	 
	 	 	Thomas
                Rajan	 
	 	 	Senior
                Vice President	 
	 	 	 	 

      

       

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-10

          
            

          

        

        
          
          

        

      

       

      
        	 NEW
                LENDER:	WACHOVIA
                BANK, NATIONAL ASSOCIATION	 
	 	 	 	 
	
                Date

              	
                By:
                  

              	/s/ Jay
                Buckman	 
	 	 	Jay
                Buckman	 
	 	 	Vice
                President	 
	 	 	 	 

      

       

       

      
        
          3240808v.1

          
          

        

        
          Second
            Amendment-11

          
            

          

        

        
          
          

        

      

       

      ANNEX
        I

       

      LIST
        OF MAXIMUM CREDIT AMOUNTS

       

      Aggregate
        Maximum Credit Amounts

       

      
        	
                Name
                  of Lender

              	
                Applicable
                  Percentage

              	
                Maximum
                  Credit Amount

              
	
                BNP
                  Paribas

              	
                30.00%

              	
                $90,000,000.00

              
	
                Bank
                  of America N.A.

              	
                26.67%

              	
                $80,000,000.00

              
	
                Comerica
                  Bank

              	
                15.00%

              	
                $45,000,000.00

              
	
                KeyBank
                  N.A.

              	
                15.00%

              	
                $45,000,000.00

              
	
                Wachovia
                  Bank, National Association

              	
                13.33%

              	
                $40,000,000.00

              
	
                TOTAL

              	
                100%

              	
                $300,000,000.00

              

      

      

    

    

    

    
      
        3240808v.1

        
        

      

      
        Second
          Amendment-12

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