Document:

exv10w1

 

Exhibit 10.1

COLLATERAL LOAN AGREEMENT

Dated as of February 14, 2007

by and among

AMB-SGP CALIFORNIA, LLC,

AMB-SGP CIF-CALIFORNIA, LLC,

AMB-SGP CIF-I, LLC,

AMB-SGP DOCKS, LLC,

AMB-SGP GEORGIA, LLC,

AMB-SGP CIF-ILLINOIS, L.P., and

AMB-SGP TX/IL SUB, LLC

(individually as “Borrower” and collectively, “Borrowers”)

and

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

and

PRUDENTIAL MORTGAGE CAPITAL COMPANY, LLC

(each as a “Co-Lender”, and individually and collectively as the context requires, as “Lender”)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	SECTION 1. GENERAL DEFINITIONS
	 	 	1	 
	1.1 Loan Documents Defined Terms
	 	 	1	 
	1.2 General Terms
	 	 	1	 
	1.3 Other Defined Terms
	 	 	9	 
	SECTION 2. SALE OR ENCUMBRANCE OF PROPERTIES IN SECURITY POOL
	 	 	9	 
	2.1 Due on Sale or Encumbrance
	 	 	9	 
	2.2 Permitted Transfers
	 	 	10	 
	2.3 One-time Transfer
	 	 	11	 
	SECTION 3. LIEN RELEASES FROM THE SECURITY POOL
	 	 	13	 
	3.1 Lien Releases
	 	 	13	 
	SECTION 4. SUBSTITUTION RIGHTS IN THE SECURITY POOL
	 	 	16	 
	4.1 Properties Substituted into the Security Pool
	 	 	16	 
	SECTION 5. EVENTS OF DEFAULT
	 	 	19	 
	5.1 Definition
	 	 	19	 
	5.2 Bankruptcy
	 	 	20	 
	5.3 Acceleration
	 	 	21	 
	5.4 Definition of Materiality in Certain Circumstances
	 	 	22	 
	5.5 Multiple Obligations
	 	 	22	 
	5.6 Application of Proceeds
	 	 	22	 
	SECTION 6. SECONDARY MARKET TRANSACTIONS
	 	 	22	 
	6.1 General
	 	 	22	 
	6.2 Borrower Cooperation
	 	 	23	 
	6.3 Financial Statements
	 	 	23	 
	6.4 Dissemination of Information
	 	 	23	 
	6.5 Change of Due Date
	 	 	23	 
	6.6 Borrower Indemnification
	 	 	23	 
	SECTION 7. MULTI-BORROWER AND MULTI-PROPERTY PROVISIONS
	 	 	24	 
	7.1 Use of Terms
	 	 	24	 
	7.2 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets
	 	 	24	 
	7.3 Joint and Several Liability
	 	 	25	 
	SECTION 8. MISCELLANEOUS
	 	 	25	 
	8.1 Amendments and Waivers
	 	 	25	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	8.2 Independence of Covenants
	 	 	25	 
	8.3 Notices
	 	 	25	 
	8.4 Survival of Warranties and Certain Agreements
	 	 	26	 
	8.5 Failure or Indulgence Not Waiver; Remedies Cumulative
	 	 	26	 
	8.6 Severability
	 	 	27	 
	8.7 Headings
	 	 	27	 
	8.8 Applicable Law
	 	 	27	 
	8.9 Successors and Assigns; Subsequent Holders of Notes
	 	 	27	 
	8.10 Consent to Jurisdiction and Service of Process; Waiver of Jury Trial
	 	 	27	 
	8.11 Counterparts
	 	 	28	 
	8.12 Exhibits and Schedules
	 	 	28	 
	8.13 Confidentiality
	 	 	28	 
	8.14 Limited Recourse Liability
	 	 	28	 
	8.15 Leasing Rights of Borrowers
	 	 	28	 
	8.16 Co-Lenders
	 	 	28	 
	8.17 Certain Additional Rights of Lender (VCOC)
	 	 	29	 
	8.18 Note Registration
	 	 	29	 
	8.19 Lender Discretion
	 	 	30	 
	8.20 Further Assurances
	 	 	30	 
	8.21 Assignment of Loan Documents
	 	 	30	 

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Loan Nos. 406 107 028 / 706 107 030 / 706 107 029 / 706 107 031

COLLATERAL LOAN AGREEMENT

     THIS COLLATERAL LOAN AGREEMENT (the “Agreement”), dated as of February 14, 2007, is made and
entered into by and among THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey corporation and
PRUDENTIAL MORTGAGE CAPITAL COMPANY, LLC, a Delaware limited liability company (together with their
respective successors and assigns, each a “Co-Lender”, collectively, “Lender”) and AMB-SGP
CALIFORNIA, LLC, a Delaware limited liability company, AMB-SGP CIF-CALIFORNIA, LLC, a Delaware
limited liability company, AMB-SGP CIF-I, LLC, a Delaware limited liability company, AMB-SGP DOCKS,
LLC, a Delaware limited liability company, AMB-SGP GEORGIA, LLC, a Delaware limited liability
company, AMB-SGP CIF-ILLINOIS, L.P., a Delaware limited partnership, and AMB-SGP TX/IL SUB, LLC, a
Delaware limited partnership (each a “Borrower”, collectively, “Borrowers”).

RECITALS:

     This Agreement is entered into on the basis of the following facts, understandings and
intentions of the parties:

     A. These Recitals refer to and utilize certain terms defined in this Agreement, which defined
terms are incorporated into these Recitals by reference when used herein.

     B. Lender has made the Loan to Borrowers concurrently with entering into this Agreement. The
Loan is evidenced and secured by the Loan Documents, including this Agreement.

     C. In connection with the Loan, Borrowers have requested certain rights with respect to (i)
Permitted Transfers, (ii) a one-time transfer of all of the Properties in the Security Pool, (iii)
Substitutions, and (iv) Releases. Lender is willing to grant Borrowers such rights on the terms
and conditions specified by Lender as set forth in this Agreement.

     D. The parties desire to enter into this Agreement in order to set forth their respective
rights and obligations in connection with the administration of the Loan.

     NOW, THEREFORE, IN CONSIDERATION of the foregoing recitals, and the mutual covenants and
promises of the parties contained in this Agreement, the parties agree as follows:

     Section 1. General Definitions.

          1.1 Loan Documents Defined Terms. Capitalized terms which are not otherwise defined
in this Agreement shall have the same meaning given to such terms in the Instruments (defined
below) or other Loan Documents in which such terms are expressly defined.

          1.2 General Terms. In addition to other capitalized terms defined herein, when used
herein the following terms shall have the following meanings:

     “Agreement” means this Collateral Loan Agreement dated as of the date first written above, as
it may be amended, supplemented or otherwise modified from time to time.

 

 

     “Allocable Loan Amount” means the pro rata allocation of the entire Loan amount to each
Building or Property, as applicable, as currently set forth on Exhibit A attached to this
Agreement, as such allocation may be reduced by any amortization of such Allocable Loan Amount.

     “ALTA/ACSM Survey” means with respect to a Property an ALTA/ACSM Land Title Survey prepared
for and certified to Lender by a registered land surveyor approved by Lender. The ALTA/ACSM Survey
shall comply with Lender’s then current survey requirements.

     “Appraised Value” means, with respect to any Property or Proposed Property, the appraised
value as reasonably determined by Lender.

     “Asbestos Bulk Survey” means, with respect to a Property, a survey by an asbestos consultant
approved by Lender to determine the presence of asbestos containing materials. Any Asbestos Bulk
Survey shall comply with the Asbestos Bulk Survey Scope of Work Guidelines previously delivered by
Lender to Borrowers, as the same may be amended, modified or supplemented by Lender from time to
time.

     “Assignment of Leases” means an assignment of the lessor’s interest in leases and rents (which
may be incorporated in the applicable Instrument) executed and delivered by any Borrower in
connection with a Property for the benefit of Lender, modified to reflect the laws of the state
where the Property is located and otherwise as Lender deems necessary or appropriate in its sole
discretion, as amended, supplemented, restated, or otherwise modified from time to time in
accordance with the provisions hereof or thereof.

     “Assignment of Permits” means an assignment of permits and developer’s rights (which may be
incorporated in the applicable Instrument) executed and delivered by any Borrower in connection
with a Property, modified by Lender to reflect the laws of the state where the Property is located
and otherwise as Lender deems necessary or appropriate in its sole discretion, as amended,
supplemented, restated, or otherwise modified from time to time in accordance with the provisions
hereof or thereof.

     “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now and
hereafter in effect, or any successor statute.

     “Borrower” means, individually, each of AMB-SGP California, LLC, a Delaware limited liability
company, AMB-SGP CIF-California, LLC, a Delaware limited liability company, AMB-SGP CIF-I, LLC, a
Delaware limited liability company, AMB-SGP Docks, LLC, a Delaware limited liability company,
AMB-SGP Georgia, LLC, a Delaware limited liability company, AMB-SGP CIF-Illinois, L.P., a Delaware
limited partnership, and AMB-SGP TX/IL SUB, LLC, a Delaware limited liability company, together
with the permitted successors and assigns of each under Section 2 of this Agreement.

     “Borrowers” means, collectively, AMB-SGP California, LLC, a Delaware limited liability
company, AMB-SGP CIF-California, LLC, a Delaware limited liability company, AMB-SGP CIF-I, LLC, a
Delaware limited liability company, AMB-SGP Docks, LLC, a Delaware limited liability company,
AMB-SGP Georgia, LLC, a Delaware limited liability company, AMB-SGP CIF-Illinois, L.P., a Delaware
limited partnership, and AMB-SGP TX/IL SUB, LLC, a Delaware limited liability company, together
with their permitted successors and assigns under Section 2 of this Agreement.

     “Building” means an individual building located on the Property (and all fixtures located
therein), now or hereafter included in the Security Pool, as more particularly set forth in
Exhibit A.

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     “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial
banks in New York City are required or authorized to be closed.

     “Closing” or “Closing Date” means the date of this Agreement.

     “Closing Certification” means, collectively, the Closing Certifications executed and delivered
by the applicable Borrower to Lender as of the date hereof in a form satisfactory to Lender.

     “Collateral Documents” means, collectively, the Instruments, the Assignments of Leases, the
Assignments of Permits, the Financing Statements, and all other instruments or documents now or
hereafter granting Liens on property of any Borrower or any related entity for the benefit of
Lender in connection with the Loan and all other instruments or documents evidencing or securing
the Loan.

     “Control” (including with correlative meanings, the terms “controlling”, “controlled by” and
“under common control with”) means the possession directly or indirectly of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of
voting securities or by contract or otherwise.

     “Debt Service Coverage Ratio” shall have the meaning given to such term in the last paragraph
of Section 2.3.

     “Due Date” shall have the meaning given to such term in the Notes.

     “Due Diligence Documents” means the following: (i) Asbestos Bulk Survey, if applicable, (ii)
Environmental Site Assessment, (iii) Environmental Certification (required with respect to
Properties or Proposed Properties located in the State of California only), (iv) Estoppel
Certificates, (v) ALTA/ACSM Survey, (vi) Engineering Report, (vii) Closing Certification, (viii)
Rent Roll, (ix) preliminary title report together with copies of all underlying exceptions, (x)
three (3) years of operating statements, if available, (xi) site plan, (xii) an appraisal of the
property prepared by a member of the Appraisal Institute (MAI), if available, (xiii) leases and, if
available, lease abstracts, (xiv) any internal projected discounted cash flow model with
assumptions, and (xv) such other documents, information and certificates as Lender may reasonably
require. The cost of all Due Diligence Documents shall be paid by the applicable Borrower owning
the Property in question.

     “Engineering Report” means a comprehensive structural evaluation of a Property prepared by a
third party engineer approved by Lender, in its discretion. With respect to each Proposed Property
which is added to the Security Pool after the Closing Date, if any Borrower has an existing
engineering report for the Proposed Property which is substantially equivalent in all material
respects (including, without limitation, scope, comprehensiveness and age of such report as
determined with reference to the date of such report and the date of submittal of such report to
Lender) to the other Engineering Reports previously approved by Lender, then such existing
engineering report for the Proposed Property shall constitute the Engineering Report therefor.

     “Environmental Certification” means, with respect to a Property or Properties located in the
State of California only, an Environmental Certification, if any, prepared by the applicable
Borrower owning such Property or Properties in the form previously delivered by Lender to
Borrowers, as the same may be amended, modified or supplemented by Lender from time to time.

     “Environmental Indemnity” means, (i) with respect to a Property or Properties located in the
State of California, the Environmental Indemnity Agreement executed and delivered by Guarantor

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to Lender in a form satisfactory to Lender and modified to reflect the laws of the state where
the Property is located and otherwise as Lender deems necessary or appropriate in its sole
discretion, and as amended, supplemented, restated, or otherwise modified from time to time in
accordance with the provisions hereof or thereof, and (ii) with respect to a Property or Properties
located in a State other than the State of California, the Environmental and ERISA Indemnity
Agreement executed and delivered by Guarantor to Lender in a form satisfactory to Lender and
modified to reflect the laws of the state where the Property is located and otherwise as Lender
deems necessary or appropriate in its sole discretion, and as amended, supplemented, restated, or
otherwise modified from time to time in accordance with the provisions hereof or thereof.

     “Environmental Site Assessment” means, with respect to a Property, an assessment by an
environmental consultant approved by Lender to determine the presence of hazardous material and/or
wastes. Any Environmental Site Assessment shall comply with the Environmental Site Assessment
Scope of Work Guidelines previously delivered by Lender to Borrowers, as the same may be amended,
modified or supplemented by Lender from time to time.

     “ERISA Indemnity” means, with respect to a Property or Properties located in the State of
California, the ERISA Indemnity Agreement executed and delivered by Guarantor to Lender in a form
satisfactory to Lender and modified to reflect the laws of the state where the Property is located
and otherwise as Lender deems necessary or appropriate in its sole discretion, and as amended,
supplemented, restated, or otherwise modified from time to time in accordance with the provisions
hereof or thereof.

     “Estoppel Certificate” means, with respect to a Property, a duly executed Estoppel Certificate
by the applicable tenants substantially in the form previously delivered by Lender to Borrower for
execution by tenants at such Property, as the same may be amended, modified or supplemented by
Lender from time to time.

     “Event of Default” has the meaning ascribed to such term in Section 5.1 of this
Agreement.

     “Financing Statement” means, with respect to a Property, a UCC-1 Financing Statement naming
that Borrower who owns the personal property described in the Financing Statement as “Debtor” and
Lender as “Secured Party”, as amended, supplemented, restated, or otherwise modified from time to
time in accordance with the provisions hereof or thereof.

     “Fixed A-1 Note” means that certain Amended, Restated and Consolidated Promissory Note (Fixed
A-1), dated even date herewith, in the original principal amount of $160,000,000.00, executed by
Borrowers, as maker, and payable to Lender or its order, together with any and all amendments,
renewals, extensions, supplements, restatements and modifications thereof and all substitutions
therefor.

     “Fixed B-1 Note” means that certain Amended, Restated and Consolidated Promissory Note (Fixed
B-1), dated even date herewith, in the original principal amount of $84,000,000.00, executed by
Borrowers, as maker, and payable to Lender or its order, together with any and all amendments,
renewals, extensions, supplements, restatements and modifications thereof and all substitutions
therefor.

     “Fixed Rate Notes” means, collectively, the Fixed A-1 Note and the Fixed B-1 Note.

     “Floating A-2 Note” means that certain Amended, Restated and Consolidated Promissory Note
(Floating A-2), dated even date herewith, in the original principal amount of $40,000,000.00,
executed by Borrowers, as maker, and payable to Lender or its order, together with any

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and all amendments, renewals, extensions, supplements, restatements and modifications thereof
and all substitutions therefor.

     “Floating B-2 Note” means that certain Amended, Restated and Consolidated Promissory Note
(Floating B-2), dated even date herewith, in the original principal amount of $21,000,000.00,
executed by Borrowers, as maker, and payable to Lender or its order, together with any and all
amendments, renewals, extensions, supplements, restatements and modifications thereof and all
substitutions therefor.

     “Floating Rate Notes” means, collectively, the Floating A-2 Note and the Floating B-2 Note.

     “Fraudulent Conveyance Indemnity Agreement” means the Fraudulent Conveyance Indemnity
Agreement executed by Guarantor in favor of Lender of even date herewith, and as amended,
supplemented, restated, or otherwise modified from time to time in accordance with the provisions
hereof or thereof.

     “GICR” means Government of Singapore Investment Corporation (Realty) Pte. Ltd., a subsidiary
of the government of Singapore.

     “Guarantor” means AMB-SGP, L.P. a Delaware limited partnership.

     “Guaranty” means that certain Recourse Liabilities Guaranty made by Guarantor in favor of
Lender of even date herewith.

     “IJV” means Industrial JV Pte. Ltd., a real estate investment subsidiary of the government of
Singapore Investment Corporation.

     “Indebtedness” means the principal of and all other amounts, payments and premiums due under
the Notes, and all other indebtedness of Borrowers to Lender and any additional advances under,
evidenced by and/or secured by the Loan Documents, plus interest on all such amounts.

     “Indemnified Party” means each of Lender, each of its affiliates and their respective
successors and assigns, any Person who is or will have been involved with the servicing of the
Loan, Persons who may hold or acquire or will have held a full or partial interest in the Loan
(including Investors, as well as custodians, trustees and other fiduciaries who hold or have held a
full or partial interest in the Loan for the benefit of third parties) (including any other Person
who holds or acquires or will have held a participation or other full or partial interest in the
Loan or the collateral therefor), and the respective officers, directors, and employees, agents,
affiliates, successors and assigns of any and all of the foregoing, but excluding any Person (other
than Lender or its affiliates) who acquires the Property at a foreclosure sale or through a deed in
lieu of foreclosure.

     “Instrument” means a deed of trust, mortgage, deed to secure debt or other similar instrument,
executed and delivered by any Borrower who owns the Property or Properties described in the
Instrument as “Trustor,” “Mortgagor,” or “Grantor”, to or for the benefit of Lender as
“Beneficiary,” “Mortgagee” or “Grantee” for a Property, modified to reflect the laws of the state
where the Property is located and otherwise in form satisfactory to Lender and as amended,
supplemented, restated, or otherwise modified from time to time in accordance with the provisions
hereof or thereof.

     “Junior Lender” means The Prudential Insurance Company of America, a New Jersey corporation,
or any subsequent holder of the Fixed B-1 Note and the Floating B-2 Note.

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     “Lease” means any and all leasehold interests, including subleases and tenancies following
attornment, now or hereafter covering any part of a Property.

     “Lender” means, collectively, The Prudential Insurance Company of America, a New Jersey
corporation and Prudential Mortgage Capital Company, LLC together with their respective successors
and assigns.

     “Lien” means any mortgage, deed of trust, deed to secure debt, pledge security interest,
encumbrance, lien or charge of any kind (including any agreement to give any of the foregoing), any
conditional sale or other title retention agreement, any financing lease in the nature thereof, and
the filing of or agreement to give any financing statement under the Uniform Commercial Code of any
jurisdiction.

     “Loan” means the loan evidenced and secured by the Loan Documents.

     “Loan Documents” means this Agreement, the Notes, the Cash Management Agreement, the
Collateral Documents and any other document or certificate executed and delivered by any Borrower
to Lender in connection with the transactions contemplated by this Agreement.

     “Loan to Value Ratio” shall have the meaning given to such term in the last paragraph of
Section 2.3.

     “Losses” means any claims, suits, liabilities (including strict liabilities), actions,
proceedings, obligations, debts, damages, losses, costs, expenses, fines, penalties, charges, fees,
judgments, awards, and amounts paid in settlement of whatever kind including attorneys’ fees (both
in-house staff and retained attorneys) and all other costs of defense.

     “Manager” means the property management company engaged by or on behalf of Borrower to manage
each Property.

     “Management Agreement” means individually and collectively the agreements entered into for
management of each Property.

     “Maturity Date” means March 5, 2012, or such earlier date on which the Loan shall become due
and payable pursuant to Section 5 of this Agreement or otherwise.

     “Note” means, individually, any one of the Notes.

     “Notes” means, collectively, each of the Fixed Rate Notes and the Floating Rate Notes.

     “Obligations” means all monetary and non-monetary obligations of every nature of Borrower from
time to time to be performed by Borrowers under any of the Loan Documents, the Environmental
Indemnities, and the ERISA Indemnities, whether for principal, interest, fees, expenses,
indemnification or otherwise.

     “Permitted Transferee” means (i) AMB Property Corporation; (ii) AMB Property, L.P.; (iii) a
Person controlled by or controlling AMB Property Corporation or AMB Property, L.P., provided that
(A) AMB Property, L.P. owns, directly or indirectly, at least a ten percent (10%) ownership
interest in each Borrower, and (B) AMB Property, L.P. directly or indirectly manages and
directs the day-to-day activities of, and controls, each Borrower; and (iv) a Person (including
IJV) wholly-owned and controlled by GICR provided that the asset manager, if any, retained is
acceptable to Lender in its sole and absolute discretion (provided, further, that any affiliate of
AMB Property Corporation or AMB Property, L.P.

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directly or indirectly controlled, managed and directed by AMB Property, L.P. shall be deemed
an acceptable asset manager) and Lender shall not unreasonably withhold its approval of an
institutional quality asset manager that (a) is domiciled in the United States or whose domicile is
otherwise acceptable to Lender, in its reasonable discretion, (b) has institutional quality
managerial and operational capability and experience with similar industrial properties, has
financial strength and business reputation reasonably acceptable to Lender, and (c) satisfies other
requirements as reasonably determined by Lender (including without limitation, if required by
Lender, after a Secondary Market Transaction, Lender shall have received a Rating Agency
Confirmation with respect to such asset manager).

     “Person” means and includes natural persons, corporations, limited partnerships, general
partnerships, joint stock companies, limited liability companies, joint ventures, associations,
companies, trusts, banks, trust companies, land trusts, business trusts, REITs or other
organizations, whether or not legal entities, and governments and agencies and political
subdivisions thereof.

     “Post Closing Obligations Letter” means that certain letter agreement of even date herewith
from Borrowers to Lender regarding certain post-closing repair and obligations of Borrower.

     “Potential Event of Default” means a condition or event that, after notice or lapse of time or
both, would constitute an Event of Default; provided no Potential Event of Default shall be deemed
to have occurred prior to Lender giving any Borrower notice thereof if required by any applicable
Loan Document.

     “Prepayment Premium” means the Fixed A-1 Prepayment Premium, the Fixed B-1 Prepayment Premium,
the Floating A-2 Prepayment Premium, and/or the Floating B-2 Prepayment Premium, as applicable.

     “Processing Fee” means a non-refundable fee payable by Borrowers to Lender as follows: (i)
with respect to each Substitution, an amount equal to the greater of (A) Twenty-Five Thousand
Dollars ($25,000), or (B) the product obtained by multiplying the Allocable Loan Amount for the
Property being removed from the Security Pool by one half of one percent (0.5%); and (ii) with
respect to each Release (other than by reason of Substitution in accordance with the provisions of
Section 4.1 of this Agreement), an amount equal to Ten Thousand Dollars ($10,000). One
half of such Processing Fee shall be fully earned and non-refundable at the time of any Borrower’s
application for such Substitution or Release, and the remainder of such Processing Fee shall be
fully earned and non-refundable at the closing of such Substitution or Release.

     “Properties” means one or more of the Properties in the Security Pool.

     “Property” means a real property or real properties (including, without limitation, all
buildings, fixtures or other improvements located thereon), now or hereafter included in the
Security Pool, as more particularly set forth in Exhibit B; provided that the term Property
shall refer to an entire Property and not individual buildings within a Property.

     “Proposed Property” means a property that any Borrower is proposing to substitute into the
Security Pool in accordance with the terms of Section 4.1 hereof.

     “Proposed Property Closing Documents” means the Instrument, the Assignment of Leases, the
Assignment of Permits, the Financing Statement, the Environmental Indemnity, the ERISA Indemnity
(if applicable), and all other instruments or documents now or hereafter granting liens on the
Proposed Property for the benefit of Lender. Each such document shall be substantially in the form
delivered by the applicable Borrower at Closing, modified to reflect the laws of the state where
the

7

 

Property is located and otherwise in form satisfactory to Lender. Proposed Property Closing
Documents shall also include such endorsements to the existing Title Policies, or new Title
Policies referencing the Proposed Property as Lender shall require in its reasonable discretion and
legal opinions of counsel acceptable to Lender opining on the due authorization, execution,
delivery, enforceability and such other matters as Lender shall reasonably require with respect to
the Proposed Property Closing Documents and any other documents or agreements executed by any
Borrower in connection therewith.

     “Rating Agencies” means Fitch, Inc., Moody’s Investors Service, Inc., S&P, and Dominion Bond
Rating Service Limited or any successor thereto, and any other nationally recognized statistical
rating organization to the extent that any of the foregoing have been or will be engaged by Lender
or its designees in connection with or in anticipation of a Secondary Market Transaction (each,
individually, a “Rating Agency”).

     “Rating Agency Confirmation” means a confirmation by each of the applicable Rating Agencies
which confirms that the taking of the action referenced therein will not result in any
qualification, withdrawal or downgrading of any existing ratings of securities created in the
applicable Secondary Market Transaction.

     “Release” shall have the meaning given to such term in Section 3.1.

     “Release Price” means, with respect to a Property (or Building, as applicable), the product
obtained by multiplying the Allocable Loan Amount for the Property (or Building, as applicable) by:
(i) if prior to and including such Release, the Property known as Dock’s Corner is part of the
Security Pool, one hundred fifteen percent (115%) or (ii) if prior to and including such Release,
the Property known as Dock’s Corner is not part of the Security Pool, one hundred ten percent
(110%).

     “Rent Roll” means the standard rent roll by Property prepared for Borrowers and the supplement
thereto setting forth, to the extent not set forth in the standard rent roll, each of the leases
pertaining to the Property, and containing the following information: (i) each tenant’s name and
suite number, (ii) the net rentable square footage covered by each lease, (iii) the annual base
rental rate per square foot per tenant, (iv) the annual base rent per tenant, (v) all items of
additional rent, (vi) the commencement and expiration dates of each lease and any termination
options, (vii) any option(s) to renew and/or any option(s) to terminate granted to any tenant,
(viii) the security deposit held for each lease, (ix) any free rent and any other liquidated
monetary concessions granted to any tenant and any obligations of such tenant assumed by the
applicable Borrower, (x) the tenant’s reimbursement obligations for operating expenses (triple net,
modified gross, etc.) and (xi) any right of first refusal or any right or option to purchase all or
any portion of the Properties granted thereunder. The Rent Roll shall be certified by an officer
of Borrowers and shall also include certified copies of all leases at the Property or Proposed
Property, as applicable, which have not previously been certified to Lender.

     “Secondary Market Transaction” shall have the meaning given to such term in Section
6.1.

     “Security Pool” means, collectively, all Properties on which Lender has a Lien as security for
the Loan, as the same may change from time to time in accordance with the terms and conditions
hereof. The Properties in the Security Pool as of the date hereof are set forth on Exhibit
B attached hereto.

     “Senior Lender” means Prudential Mortgage Capital Company, LLC, a Delaware limited liability
company and The Prudential Insurance Company of America, a New Jersey corporation

8

 

or the subsequent holders of the Fixed A-1 Note and Floating A-2 Note, each with rights as may
be allocated as between the holder Fixed A-1 Note and the Floating A-2 Note in separate writing.

     “Single Purpose Entity” shall have the meaning given to such term on Exhibit C
attached hereto.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc.

     “SPE Equity Owner” means AMB-SGP CIF ILLINOIS GP LLC.

     “Substitution” shall have the meaning given to such term in Section 4.1.

     “Title Company” means Chicago Title Insurance Company.

     “Title Policy” means each Lender’s ALTA (form B-1970, if available) Lender’s Policy of title
insurance in the aggregate amount of the Loan issued by the Title Company (with reinsurance
provided by Fidelity National Title Insurance Company) to Lender, dated as of the time of recording
of the applicable Instruments (as the same may have been thereafter updated with Lender’s consent),
showing Lender as insured with a first priority lien on and title to the Property vested fee simple
in Borrower, with such endorsements as are customary for multi-state, cross-collateralized
commercial mortgage loans (including, but not limited to, CLTA 100, 103.6, 103.7, 104.6, 108.8,
110.5, 110.9, 111.5, 116, 116.1 and 123.2 or the equivalent thereof, to the extent available in the
applicable state in which the Property is located) and in form acceptable to Lender in its sole
discretion.

     “Unisource Lease” means that certain Standard Industrial Lease dated for reference purposes
May 1, 1996 by and between Fairway Drive Venture, LLC (the predecessor in interest to AMB-SGP
CIF-California, LLC) and National Business Services, Inc. doing business as Unisource Office
Services as amended.

          1.3 Other Defined Terms. Certain other terms used in this Agreement shall have the
meaning ascribed to such terms elsewhere in this Agreement.

     Section 2. Sale or Encumbrance of Properties in Security Pool.

          2.1 Due on Sale or Encumbrance.

               (a) It shall be an Event of Default and, at the sole option of Lender, Lender may
accelerate the Obligations and the entire Obligations (including any Prepayment Premium) shall
become immediately due and payable, if without Lender’s prior written consent (which may be
withheld for any or no reason including the possibility of an ERISA violation or the proposed
transferee’s failure to agree in writing to Lender increasing the interest payable on the
Obligations to any rate, changing any other terms (including maturity) of the Obligations or
Documents, or requiring the payment of a transfer fee)(except pursuant to and in compliance with
the provisions of Sections 2.2, 2.3, 3.1 or 4.1 of this Agreement):

                    (i) if any Borrower shall sell, convey, assign, transfer, dispose of or be divested
of its title to, convey security title to any Property, mortgage, encumber or cause to be
encumbered (except for the imposition of mechanics’ or materialmen’s liens) any Property or any
interest therein, in any manner or way, whether voluntary or involuntary; or

9

 

                    (ii) subject to Section 2.2 below, in the event of any merger, consolidation, sale,
transfer, assignment, or dissolution involving all or substantially all of the assets of any
Borrower; or

                    (iii) subject to Section 2.2 below, in the event of the assignment, transfer,
pledge, voluntary or involuntary sale, or encumbrance (or any of the foregoing at one time or over
any period of time) of:

                         (1) ten percent (10%) or more of (1) the ownership interest of any Borrower or SPE Equity
Owner, regardless of the type or form of entity of such Borrower or SPE Equity Owner, (2) the
voting stock or ownership interest of any corporation or limited liability company which is,
respectively, general partner or managing member of any Borrower or SPE Equity Owner or any
corporation or limited liability company directly or indirectly owning ten percent (10%) or more of
any such corporation or limited liability company, (3) the ownership interests of any owner of ten
percent (10%) or more of the beneficial interests of any Borrower or SPE Equity Owner if such
Borrower or SPE Equity Owner is a trust; or

                         (2) any general partnership interest in (1) any Borrower or SPE Equity Owner, (2) a
partnership which is in any Borrower’s or SPE Equity Owner’s chain of ownership and which is
derivatively liable for the obligations of such Borrower or SPE Equity Owner, or (3) any general
partner who has the right to participate directly or indirectly in the control of the management or
operations of any Borrower or SPE Equity Owner; or

                         (3) more than forty-nine percent (49%) of the total direct or indirect legal or beneficial
ownership interests in Borrower or SPE Equity Owner; or

                         (4) any direct or indirect legal or beneficial ownership interests in Borrower or SPE Equity
Owner which results in a change in control of Borrower or SPE Equity Owner.

                    (iv) subject to Section 2.2 below, in the event of the conversion of any general
partnership interest in any Borrower or SPE Equity Owner to a limited partnership interest; or

                    (v) subject to Section 2.2 below, in the event of any change, removal, or
resignation of any general partner of any Borrower or SPE Equity Owner; or

                    (vi) subject to Section 2.2 below, in the event of any change, removal, addition or
resignation of a managing member of any Borrower or SPE Equity Owner; or

                    (vii) in the event of any assignment, transfer, pledge, voluntary or involuntary
sale, or encumbrance of any interest in Borrower by SPE Equity Owner.

               (b) The provisions of Section 2.1(a) shall not apply to transfers under any will or
applicable law of descent. Further, the provisions of Section 2.1(a) shall not operate to prohibit
or apply to (x) the transfer, sale or conveyance of publicly traded shares in AMB Property
Corporation, (y) the transfer, sale or conveyance of shares in AMB Property Holding Corporation so
long as (1) either AMB Property Corporation or AMB Property, L.P. (I) shall own, directly or
indirectly, at least a ten percent (10%) ownership interest in AMB Property Holding Corporation,
and (II) directly or indirectly controls, manages, and directs AMB Property Holding Corporation, or
(z) the transfer, sale or conveyance of limited partnership interests in AMB Property, L.P. or AMB
Property II, L.P.

10

 

Notwithstanding the foregoing, if any such transfer results in any Person’s direct or indirect
interest in any SPE Equity Owner or Borrower exceeding forty-nine percent (49%) and such Person’s
direct and indirect interest in such SPE Equity Owner or Borrower did not exceed forty-nine percent
(49%) prior to such transfer then prior to such transfer, Borrower shall, if requested by any
Rating Agency, deliver a non-consolidation opinion reasonably acceptable to Lender.

          2.2 Permitted Transfers.

               (a) Notwithstanding Section 2.1(a) above, any Borrower may engage in the
transactions described below after at least thirty (30) days’ prior written notice to Lender,
provided that all of the following conditions are met: (i) there is no Event of Default or
Potential Event of Default under the Loan Documents; (ii) the proposed transferee complies with and
delivers an ERISA certification and indemnification agreement in the form delivered by original
Borrowers in connection with the Loan (or, if the statements required by the certification are not
true with respect to the proposed transferee, Lender shall have received such evidence as it may
require in its sole discretion to determine that the proposed transfer is not and would not render
the Loan a prohibited transaction under ERISA); (iii) the proposed transferee shall have provided
such information about the proposed transferee as is reasonably requested by Lender; and (iv)
payment by such Borrower or the proposed transferee of (1) all third party out-of-pocket costs and
expenses reasonably incurred by Lender for the processing of said transfer, including a processing
fee (which shall be the only fee paid to Lender or any servicer of the Loan) of $20,000.00 with
respect to each such transfer if title to any Property is transferred as the result of such
transfer (it being understood that if multiple Properties owned by one or more Borrowers are to be
simultaneously transferred to a single proposed transferee, the processing fee due in connection
with such transaction shall be $20,000.00 regardless of the number of Properties to be transferred
by such Borrower to such transferee), (2) any documentary stamp taxes, intangibles taxes, mortgage
taxes, recording fees, and other costs and expenses required in connection with the transfer, (3)
all other reasonable third party costs and expenses (including reasonable attorneys’ fees and
expenses for Lender’s staff attorneys and outside counsel), and (4) any Rating Agency fees and
expenses, if applicable. Provided all of the foregoing conditions are fulfilled with respect to
each such transfer, and provided further that (i) the guarantor (or a replacement guarantor
acceptable to Lender) of the Loan following such transfer maintains a net worth, as reasonably
determined by Lender, of at least $50 million (ii) counsel to transferee and the replacement
guarantors and indemnitors shall deliver to Lender opinion letters relating to such transfer
(including enforceability and nonconsolidation opinions) in form and substance reasonably
satisfactory to Lender:

          (1) A transfer of the direct or indirect interests in any Borrower (other than the interests
of an SPE Equity Owner in Borrower) and the direct or indirect interest in any related SPE Equity
Owner, if applicable, to a Permitted Transferee; and

          (2) A transfer of one or more Properties to a Permitted Transferee; provided that each of the
conditions the following sections are satisfied: 2.3(b), 2.3(c), 2.3(d), 2.3(g), 2.3(j), 2.3(k),
2.3(m) (except that Borrower shall only be required to deliver the REMIC opinion if requested by a
Rating Agency), 2.3(n), 2.3(o), and 2.3(p).

               (b) No violation of the provisions of Sections 2.1(a)(iii)(1), 2.1(a)(iii)(2),
2.1(a)(iii)(3), 2.1(a)(iii)(4), or 2.1(a)(vi) above shall occur so long as (i) either AMB Property
Corporation or AMB Property, L.P. (A) shall own, directly or indirectly, at least a ten percent
(10%) ownership interest in each Borrower and (B)(1) is a managing member of each Borrower or (2)
directly or indirectly manages and directs the day-to-day activities of, and controls, each
Borrower, as reasonably determined by Lender, and (ii) the guarantor of the Loan maintains a net
worth, as reasonably determined by Lender, of at least $50 million. Notwithstanding the foregoing,
if any such transfer results

11

 

in any Person’s direct or indirect interest in any Borrower exceeding forty-nine percent (49%)
and such Person’s direct and indirect interest in such Borrower did not exceed forty-nine percent
(49%) prior to such transfer then prior to such transfer, Borrower shall, if requested by any
Rating Agency, deliver a non-consolidation opinion reasonably acceptable to Lender.

               (c) Consent by Lender to any one transfer shall not be deemed a waiver of its right
to require consent to further or future transfers.

Notwithstanding anything in this Agreement to the contrary, in no event shall any SPE Equity Owner
be permitted to assign, transfer, pledge, sell, or encumber any of its interest in any Borrower.

          2.3 One-time Transfer. Notwithstanding Section 2.1, and so long as there is no Event
of Default or Potential Event of Default under the Loan Documents, at any time following the first
(1st) anniversary of the date of this Agreement, Lender agrees, upon thirty (30) days’
prior written request, to consent to one transfer of all of the Properties in the Security Pool (or
all of the direct or indirect interests in each SPE Equity Owner and Borrower (other than the
interests of any SPE Equity Owner in Borrower)) if:

               (a) the proposed transferee of the Properties is an unaffiliated third party which,
in the sole and absolute judgment of Lender, has substantial financial capability and
creditworthiness, reputation and experience in the ownership, operation, management, and leasing of
similar properties;

               (b) following such transfer, the proposed transferee, such transferee’s affiliates’
or related entities’ credit obligations shall not exceed Lender’s individual or related borrower
limits as established by Lender from time to time in its sole discretion;

               (c) the single purpose nature and bankruptcy remoteness of the transferee shall be
reasonably satisfactory to Lender;

               (d) if necessary in Lender’s reasonable discretion, the proposed transferee enters
into an asset management contract, for the Property with a Person (i) having experience in the
ownership, operation, management and leasing of properties similar in character to the Property and
(ii) satisfactory in all respect to Lender;

               (e) at the time of transfer, the Loan to Value Ratio (defined below) does not exceed
sixty-five percent (65%); provided, however, that if the foregoing requirement is not
satisfied and Borrowers may, through the prepayment of principal outstanding under the Loan (but
only if such prepayment is otherwise permitted pursuant to the terms of each Note), satisfy such
requirement, then Borrowers may pay down a portion of the outstanding principal balance of the Loan
which Lender determines is necessary to satisfy such requirement (and paying any Prepayment Premium
applicable thereto);

               (f) Borrowers pay Lender a non-refundable servicing fee in the amount of $20,000 at
the time of the request, and an additional fee equal to one half of one percent (0.5%) of the
outstanding principal balance of the Loan at the time of the transfer, less the amount of the
non-refundable servicing fee previously paid to Lender;

               (g) at Lender’s option, Lender’s title policies are endorsed to verify the first
priority of the Loan Documents at Borrowers’ expense;

12

 

               (h) the Debt Service Coverage Ratio (defined below) for the prior twelve (12) months
is at least 1.30 to 1.00; provided, however, that if the foregoing requirement is not
satisfied and Borrowers may, through the prepayment of principal outstanding under the Loan (but
only if such prepayment is otherwise permitted pursuant to the terms of each Note), satisfy such
requirement, then Borrowers may pay down a portion of the outstanding principal balance of the Loan
which Lender determines is necessary to satisfy such requirement (and paying any Prepayment Premium
applicable thereto);

               (i) the Debt Service Coverage Ratio (as defined below, but based on NOI as projected
by Lender for the next succeeding twelve (12) months) is at least 1.30 to 1.00; provided,
however, that if the foregoing requirement is not satisfied and Borrowers may, through the
prepayment of principal outstanding under the Loan (but only if such prepayment is otherwise
permitted pursuant to the terms of each Note), satisfy such requirement, then Borrowers may pay
down a portion of the outstanding principal balance of the Loan which Lender determines is
necessary to satisfy such requirement (and paying any Prepayment Premium applicable thereto);

               (j) the proposed transferee, proposed guarantor and proposed indemnitor, expressly
assume all obligations under the Loan Documents and all guarantees and indemnities arising from and
after the date of the transfer and execute any documents reasonably required by Lender and any
documents required by the Rating Agencies, and all of these documents are satisfactory in form and
substance to Lender and satisfactory to the Rating Agencies;

               (k) Lender reasonably approves the form and content of all transfer documents, and
Lender is furnished with a certified copy of the recorded transfer documents;

               (l) if required by Lender, after a Secondary Market Transaction, Lender shall have
received a Rating Agency Confirmation with respect to such Transfer;

               (m) counsel to the proposed transferee and the proposed guarantors and indemnitors
shall deliver to Lender and the Rating Agencies opinion letters in substantially the same form as
those delivered in connection with the making of the Loan (including without limitation a
non-consolidation opinion and REMIC opinion) relating to such transfer in form and substance
reasonably satisfactory to Lender and satisfactory to the Rating Agencies;

               (n) the proposed transferee signs and delivers Lender’s then current credit
certification, which shall include a representation that the transferee and all Persons holding any
legal or beneficial interest whatsoever in such proposed transferee are not included in, owned by,
controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or services
of any kind to, or otherwise associated with any of the persons or entities referred to or
described in Executive Order 13224 – Blocking Property and Prohibiting Transaction with Persons Who
Commit, Threaten to Commit, or Support Terrorism, as amended;

               (o) the proposed transferee complies with and delivers the ERISA certification and
indemnity agreement in the form delivered by original Borrowers in connection with the Loan (or, if
the statements required by the certification are not true with respect to the proposed transferee,
Lender shall have received such evidence as it may require in its sole discretion to determine that
the proposed transfer is not and would not render the Loan a prohibited transaction under ERISA);
and

13

 

               (p) Borrowers or the proposed transferee pay all fees, costs, and expenses incurred
by Lender in connection with the proposed transfer, including, without limitation, all reasonable
legal (for both outside counsel and Lender’s staff attorneys) and accounting fees, title insurance
fees, Rating Agency fees and expenses, documentary stamps taxes, intangible taxes, mortgage taxes,
recording and filing costs and fees, and reasonable appraisal fees, whether or not the transfer is
actually consummated.

     The term “Loan to Value Ratio” shall mean the ratio, as reasonably determined by Lender, of
(i) the aggregate principal balance of all encumbrances against the Properties in the Security Pool
to (ii) the fair market value of the Properties in the Security Pool. The term “Debt Service
Coverage Ratio” shall mean the ratio, as reasonably determined by Lender, calculated by dividing
(i) net operating income (“NOI”) by (ii) total annual debt service (“TADS”). NOI is the gross
annual income realized from operations of all Properties in the Security Pool for the applicable
twelve (12) month period after subtracting all necessary and ordinary operating expenses (both
fixed and variable) for that twelve (12) month period (assuming for expense purposes only that all
such Properties are 95% leased and occupied if actual leasing is less than 95%), including, without
limitation, utilities, administrative, cleaning, landscaping, security, repairs, and maintenance,
ground rent payments, management fees, real estate and other taxes (on a fully-assessed basis,
except in jurisdictions where taxes are not based on current assessed value, such as California, in
which case such taxes shall be based on actual tax bills), assessments and insurance, but excluding
deduction for federal, state and other income taxes, debt service expenses, depreciation or
amortization of capital expenditures, and other similar non-cash items. Gross income shall be
based on (1) the cash actually received for the preceding twelve months (if gross income for the
preceding twelve months is being calculated) or (2) projected income based on leases in place for
the next succeeding twelve (12) months (if gross income for the next succeeding twelve (12) months
is being calculated) (and, to the extent that real estate tax pass-throughs are included in such
projected income, such taxes shall be determined on a fully assessed basis to the extent that is
the basis for calculating the corresponding taxes that were used for projecting operating
expenses), and ordinary operating expenses shall not be prepaid. Documentation of NOI and expenses
shall be certified by an officer of the applicable Borrower with detail satisfactory to Lender and
shall be subject to the approval of Lender. TADS shall mean the aggregate debt service payments
for the applicable twelve (12) months on the Loan and on all other indebtedness secured, or to be
secured, by any part of the Properties in the Security Pool, assuming at all times, for purposes of
calculating the Debt Service Coverage Ratio, that the Floating Rate Notes bear interest at the
weighted average interest rate of the Fixed Rate Notes (weighted based on their respective
outstanding principal balances).

       Section 3. Lien Releases from the Security Pool.

          3.1 Lien Releases. Notwithstanding Section 2, commencing on August 14, 2007,
any Borrower shall be entitled to obtain a release of Lender’s Liens under the Collateral Documents
relating to a Property or Building (a “Release”) in accordance with the following, subject to
satisfaction by such Borrower of each and every condition precedent set forth in subsection
3.1(a).

               (a) The conditions precedent to Lender’s obligations under this Section 3.1
are as follows:

                    (i) Lender shall have received at least thirty (30) days prior written notice from
such Borrower of the proposed Release and accompanying partial repayment of the Loan (which shall
be in an amount required by clause (iv) below), and Borrowers shall pay to Lender the applicable
Processing Fee for the proposed for Release at the time of such Borrower’s application for the
Release. One-half (1/2) of the Processing Fee shall be fully earned and non-refundable at the time
of such

14

 

Borrower’s application for such Release, and the remainder of the Processing Fee shall be
fully earned and non-refundable at the closing of such Release;

                    (ii) in connection with the partial prepayment of the Loan, such Borrower shall
identify the Building(s) or Property or Properties for which a Release is requested;

                    (iii) no Event of Default or Potential Event of Default shall then exist;

                    (iv) Borrowers shall have paid in full the Release Price attributable to the
particular Building(s), Property or Properties for which a Release is being requested, plus all
accrued and unpaid interest and any applicable Prepayment Premium attributable thereto;

                    (v) Intentionally Omitted;

                    (vi) payment of the Release Price will not reduce the outstanding principal balance
of the Loan below Sixty-Five Million Dollars ($65,000,000.00);

                    (vii) if following the proposed Release, the Property known as Dock’s Corner remains
part of the Security Pool, payment of the Release Price will not reduce the outstanding principal
balance of the Loan below One Hundred and Fifty Million Dollars ($150,000,000.00);

                    (viii) such Borrower shall provide evidence, in form and substance satisfactory to
Lender (as reasonably determined in accordance with Lender’s then-customary standards), that for
the next succeeding twelve (12) months after giving effect to the proposed Release, as reasonably
determined by Lender at the time of the proposed release: (A) the Debt Service Coverage Ratio
shall be equal to or greater than the greater of (i) the Debt Service Coverage Ratio immediately
prior to such proposed Release or (ii) the applicable Debt Service Coverage Ratio set forth in the
table shown below, and (B) the Loan to Value Ratio shall be equal to or less than the lesser of (i)
the Loan to Value Ratio immediately prior to such proposed Release or (ii) the applicable Loan to
Value Ratio set forth in the table below; provided, however, that if one or more of the
foregoing requirements is not satisfied and such Borrower may, through the prepayment of principal
outstanding under the Loan (but only if such prepayment is otherwise permitted pursuant to the
terms of each Note), satisfy such requirements, then such Borrower may qualify for a Release by
paying down a portion of the outstanding principal balance of the Loan which Borrower demonstrates
to Lender (as reasonably determined in accordance with Lender’s then customary standards) is
necessary to satisfy such requirements (and paying any Prepayment Premium applicable thereto);
provided, further, however, that Lender shall advise such Borrower of its determination
within fourteen (14) days after such Borrower submits to Lender, in detail satisfactory to Lender,
in its reasonable discretion, their written analysis of the effect of the Release upon the
foregoing requirements;

15

 

	 	 	 	 	 	 	 	 	 
	   PERCENT OF ORIGINAL LOAN AMOUNT	 	LOAN TO VALUE	 	 	DEBT SERVICE	 
	                  OUTSTANDING AFTER	 	RATIO NOT	 	 	COVERAGE RATIO	 
	GIVING EFFECT TO SUCH PARTIAL RELEASE	 	GREATER THAN:	 	 	NOT LESS THAN:	 
	Greater than or equal to 80%
	 	 	70	%	 	 	1.25 to 1.00	 
	Less than 80% but greater than or equal to 60%
	 	 	65	%	 	 	1.35 to 1.00	 
	Less than 60% but greater than or equal to 40%
	 	 	60	%	 	 	1.45 to 1:00	 
	Less than 40% but greater than or equal to 21%
	 	 	55	%	 	 	1.50 to 1.00	 
	Less than 21%	 	Partial Release Not Available

                    (ix) Lender shall receive, at Borrowers’ sole cost and expense, such endorsement(s)
to the Title Policy as Lender may deem reasonably necessary to insure the Instrument(s) encumbering
the Buildings and Properties not so released remain valid liens against such Buildings and
Properties notwithstanding any such Release, subject only to such title exceptions as were
originally shown in the Title Policy;

                    (x) after giving effect to the Release, both of the Building(s) and Property or
Properties to be released and all remaining Buildings and Properties in the Security Pool shall be
in compliance with all applicable laws, including, but not limited to, lot split and platting
requirements, building codes and subdivision, zoning and land use laws;

                    (xi) after giving effect to the Release, both the Building(s), Property or
Properties to be released and the remaining Buildings and Properties in the Security Pool will
constitute separate real estate tax parcels and accordingly each will be separately taxed and
assessed;

                    (xii) after giving effect to the Release, any Leases encumbering the Building(s),
Property or Properties to be released shall be separate and independent of all Leases applicable to
the remaining Buildings and Properties in the Security Pool, and any Leases encumbering the
remaining Buildings and Properties shall not be dependent on or tied in any way to any Lease on the
Building(s), Property or Properties to be released;

                    (xiii) intentionally omitted; and

                    (xiv) prior to a Secondary Market Transaction, the date of the proposed Release
shall be not be within sixty (60) days of the date of any planned Secondary Market Transaction as
to which Lender has provided Borrower with written notice specifying the date of such planned
Secondary Market Transaction (and provided such notice is provided to Borrower prior to Borrower
having provided Lender with notice of the proposed Release) and after a Secondary Market
Transaction, shall be at least sixty (60) days after such Secondary Market Transaction.

     In addition to the Processing Fee applicable to a Lien release, Borrowers shall pay, on or
before the date any Release is granted, all third party, out-of-pocket costs and expenses incurred
by Lender in connection with any requested Release, including, without limitation, all reasonable
legal and accounting fees, title fees, all Rating Agency fees and expenses, all reasonable
inspection fees, documentary stamp taxes, mortgage taxes, intangible taxes, and recording and
filing fees and costs, but excluding any additional fees, including any fees payable to a servicer
of the Loan. In the event that (i) any Borrower, at any time after submittal of the notice to
Lender under subsection 3.1, withdraws the Release request, or (ii) Borrower fails to meet
the conditions for such request for a Release (to the extent that Borrower is required to meet
specified conditions pursuant to this Agreement), then Borrowers shall remain obligated to pay all
third-party, out-of-pocket costs incurred by Lender in connection with the Release request,
including, without limitation, all reasonable legal and accounting fees, title fees, reasonable
inspection fees, reasonable appraisal fees, documentary stamp taxes, mortgage taxes, intangible
taxes, and recording
and filing fees and costs, which amounts shall be payable to Lender within fifteen (15) days after
such withdrawal or failure to meet conditions.

16

 

               (b) The Release Price shall be applied in such order as Lender shall determine;
provided, however, that so long as no Event of Default has occurred, the applicable Borrower shall
have the right, in its sole discretion, to determine the allocation of the Release Price between
(i) the Floating Rate Notes and (ii) the Fixed Rate Notes; provided further that (i) payments
allocated to the Floating Rate Notes shall be applied pro rata to each of the Floating Rate Notes
based on their outstanding principal balance and (ii) payments allocated to the Fixed Rate Notes
shall be applied pro rata to each of the Fixed Rate Notes based on their outstanding principal
balance. Notwithstanding anything contained herein to the contrary, no Release shall be permitted
if the associated prepayments would not otherwise be permitted pursuant to the terms of the Notes.

               (c) Intentionally Omitted.

               (d) In addition, following a partial prepayment in connection with a Release, the
debt service payment on the Loan shall be adjusted downward to reflect such partial principal
payment.

               (e) Borrowers understand that the right of Release set forth in this Section
3.1 is personal to the original Borrowers and any Permitted Transferee, and Borrowers further
understand and agree that the right of Release set forth in this Section 3.1 shall not be
available to any third-party transferee under Section 2.3.

     Section 4. Substitution Rights in the Security Pool.

          4.1 Properties Substituted into the Security Pool. Notwithstanding Section 2,
at any time (1) commencing on August 14, 2007 but (2) prior to March 14 2011, Borrowers shall have
the right, on up to five (5) occasions during the term of the Loan, to substitute one or more
Proposed Properties for a single Property in the Security Pool, and Lender shall release its Lien
on such Property then in the Security Pool (each such substitution and Lien release, a
“Substitution”), which Substitution shall be made subject to and in accordance with the conditions
and procedures set forth in this Section 4.1; provided, however, that in no event shall the
aggregate Allocable Loan Amount (as determined by Lender) of the Properties released from the
Security Pool in connection with such substitutions exceed thirty-five percent (35%) of the entire
Loan amount (i.e., $106,750,000.00). The Substitution shall not give Borrowers the right to borrow
or re-borrow any additional funds under the Loan Documents.

               (a) The conditions precedent to Lender’s obligations under Section 4.1 are
as follows:

                    (i) Lender’s receipt of a complete package of Due Diligence Documents, as determined
by Lender, with respect to the Proposed Property, which Due Diligence Documents shall be
satisfactory to Lender in all respects in Lender’s sole discretion. In order to accommodate
Borrowers’ desire to complete a Substitution within forty-five (45) days after Lender’s receipt of
a complete Due Diligence Documents package therefor, together with the applicable Processing Fee,
Borrowers shall, as early as possible, provide written notice to Lender of the intended
Substitution and a complete Due Diligence Documents package for the Proposed Property. The costs
of preparation of the Due Diligence Documents package and all necessary inspections shall be paid
by Borrowers;

                    (ii) no Event of Default or Potential Event of Default shall then exist;

17

 

                    (iii) Borrowers shall provide evidence, in form and substance satisfactory to Lender
in its sole discretion, that for the next succeeding twelve (12) months after giving effect to the
Substitution (A) the Debt Service Coverage Ratio shall be not less than the greater of (i) the
Debt Service Coverage Ratio immediately prior to the date of such Substitution or (ii) 1.40 to 1.0,
and (B) the Loan to Value Ratio shall be no greater than seventy percent (70%); provided,
however, that if one or more of the foregoing requirements is not satisfied and Borrowers may,
through the prepayment of principal outstanding under the Loan (but only if such prepayment is
otherwise permitted pursuant to the terms of each applicable Note), satisfy such requirements, then
Borrowers may qualify for a Substitution by paying down a portion of the outstanding principal
balance of the Loan necessary to satisfy such requirements (and paying any Prepayment Premium
applicable thereto);

                    (iv) the Proposed Property shall have (A) a then-current Appraised Value equal to or
greater than the then-current Appraised Value of the Property being released as part of the
Substitution, both as reasonably determined by Lender, and (B) NOI, as may be adjusted and
determined in accordance with Lender’s then standard underwriting practice which may include
reasonable reserves for capital expenditures with respect to the Proposed Property and an estimate
of the income which will actually be earned by the Proposed Property for the next succeeding twelve
(12) months, which is equal to or greater than the NOI of the Property being released as part of
the Substitution, as may be adjusted and determined in accordance with Lender’s then standard
underwriting practice which may include reasonable reserves for capital expenditures with respect
to the Property being released and a reasonable estimate of the income which will actually be
earned by the Property being released for the next succeeding twelve (12) months;

                    (v) Lender shall receive, at Borrowers’ sole cost and expense, such endorsement(s)
to the applicable Title Policy(ies) as Lender may deem reasonably necessary to ensure the
Instruments encumbering the Properties not so released remain valid Liens against such properties
notwithstanding any such release of a Property, subject only to such title exceptions as were
originally shown in the applicable Title Policy(ies);

                    (vi) the proposed Substitution will not, when added to all prior Substitutions
effected by Borrowers pursuant to this Section 4.1 after the date of this Agreement, cause
the total number of Properties removed from the Security Pool as a result of Substitutions during
the term of the Loan to exceed five (5);

                    (vii) Borrower shall demonstrate that the Proposed Property is a fully constructed
industrial bulk warehouse, distribution or generally similar property which is similar in type and
quality to the Property being released, as reasonably determined by Lender; and the Leases for the
Proposed Property (including the Lease expiration profile for the Proposed Property) and the credit
of the tenants under the Leases for the Proposed Property shall be generally similar to those of
the Property being released as part of the Substitution;

                    (viii) Borrower shall demonstrate that the Proposed Property shall be not less than
ninety percent (90%) leased to third-party tenants whose terms have commenced and are paying rent
with an average remaining lease term satisfactory to Lender as reasonably determined by Lender, and
free rent or other rental concessions shall have been extinguished except as may otherwise be
approved in writing by Lender, and such tenants shall not be in default under their Leases;

                    (ix) Borrower shall be demonstrate that the location (including, without limitation,
the character and demographics of the market area) of the Proposed Property shall of equal to or
superior quality than the Property being released;

18

 

                    (x) after giving effect to the substitution of the Proposed Property in the Security
Pool, not more than fifty percent (50%) of the aggregate Appraised Values of all Properties
(including the Proposed Property) in the Security Pool shall be situated in any single metropolitan
area;

                    (xi) the Proposed Property shall meet Lender’s then current environmental,
engineering, title/land use, leasing, legal, insurance and other underwriting standards;

                    (xii) the Proposed Property shall be owned in fee simple and shall not consist of
any partial interests in a property, including, but not limited to, partnership or joint venture
interests;

                    (xiii) to the extent applicable to the Proposed Property, all conditions that
Borrowers were obligated to meet and satisfy in connection with the Closing of the Loan and under
the Loan Documents, or, if required by Lender, the then-current closing requirements of a prudent
institutional lender, shall be satisfied with respect to the Proposed Property, including without
limitation, that (i) all Proposed Property Closing Documents (including, without limitation, a
Title Policy) and the Closing Certification, shall be satisfactory to Lender and shall create a
first priority Lien on the Proposed Property, (ii) Lender receives satisfactory legal opinions from
Borrowers’ counsel (including customary opinions required in connection with the closing of a
loan), (iii) title to the Proposed Property shall be satisfactory in all respects to Lender, and
Lender shall have received a satisfactory survey, (iv) Lender receives evidence that the Proposed
Property complies with all applicable governmental requirements, (v) construction of the Proposed
Property is complete and in accordance with the plans and specifications therefor, (vi) all bills
in connection with such construction have been paid in full, and (vii) Borrowers’ current financial
condition shall be reasonably satisfactory to Lender;

                    (xiv) Borrowers shall pay to Lender, at the time of Borrowers’ application for such
Substitution, the applicable Processing Fee. One half of such Processing Fee shall be fully earned
and non-refundable at the time of Borrowers’ application for the Substitution, and the remainder of
such Processing Fee shall be fully earned and non-refundable at the closing of such substitution;

                    (xv) after a Secondary Market Transaction, Lender shall have received, with respect
to such Substitution, (A) a Rating Agency Confirmation and (B) if requested by any Rating Agency, a
REMIC opinion; and

                    (xvi) prior to a Secondary Market Transaction, the date of the proposed Substitution
shall be not be within sixty (60) days of the date of any planned Secondary Market Substitution and
after a Secondary Market Transaction, shall be at least sixty (60) days after such Secondary Market
Transaction.

               (b) In addition to the satisfaction of the conditions precedent set forth in
subsection 4.1(a), Borrowers shall pay, on or before the date on which the applicable
Instrument is recorded against the Proposed Property, all third-party, out-of-pocket costs and
expenses incurred by Lender in connection with any requested Substitution (including, without
limitation, all reasonable legal and accounting fees, all Rating Agency fees and expenses,
reasonable appraisal fees, title company fees,
documentary stamp taxes, mortgage taxes, intangible taxes, recording and filing fees and
costs), but excluding any additional fees, including any fees payable to a servicer of the Loan.
Lender shall be entitled to receive, and Borrowers shall be obligated to pay, the entire amount of
such third-party, out-of-pocket expenses (including, without limitation, all reasonable legal and
accounting fees, reasonable

19

 

appraisal
fees, title company fees, documentary stamp taxes, mortgage
taxes, intangible taxes, and recording and filing fees and costs) with respect to a Proposed
Property which is (i) withdrawn as a Substitution candidate by any Borrower at any time after such
Borrower’s application for such Substitution, or (ii) fails to meet the applicable conditions for
Substitution, which amounts shall be paid to Lender within fifteen (15) days after such withdrawal
or failure to meet conditions.

               (c) Borrowers understand that the right of Substitution set forth in this
Section 4.1 is personal to the original Borrowers and any Permitted Transferee, and no
other entities shall have any rights under this Section 4.1, and Borrowers further
understand and agree that the right of Substitution set forth in this Section 4.1 shall not
be available to any third-party transferee under Section 2.3.

     Section 5. Events of Default.

          5.1 Definition.

     If one or more of the following events shall have occurred and be continuing:

                    (a) Any Borrower shall fail to pay when due any part of the Indebtedness;

                    (b) Subject to subsection 5.4, any Borrower shall fail to timely observe,
perform or discharge any Obligation or any material obligations on its part to be performed or
observed under any other agreement relating to a Property other than as described in
subsections 5.1(a), (c), (d), (e), (f), (g), (h) and (i), and any such failure shall remain
unremedied for thirty (30) days or such lesser period as may be otherwise specified in the
applicable Loan Document or agreement (the “Grace Period”) after notice to any Borrower of the
occurrence of such failure; provided, however, that Lender shall extend the Grace Period up to an
additional sixty (60) days (for a total of ninety (90) days from the date of default) if (i)
Borrower promptly commences and diligently pursues the cure of such default and delivers (within
the Grace Period) to Lender a written request for more time and (ii) Lender determines in good
faith that (1) such default cannot reasonably be cured within the Grace Period but can be cured
within ninety (90) days after the default, (2) no lien or security interest created by the Loan
Documents will be impaired prior to completion of such cure, and (3) Lender’s immediate exercise of
any remedies provided hereunder or by law is not necessary for the protection or preservation of
any of the Properties or Lender’s lien, security interest or security title;

                    (c) Any Borrower shall fail to timely observe, perform or discharge any provision of
any of the Loan Documents, the Environmental Indemnity or the Fraudulent Conveyance Indemnity
Agreement, and such failure shall remain unremedied beyond the cure period, if any, specified in
the applicable agreement;

                    (d) Default by any Borrower after the expiration of all applicable grace or cure
periods under any agreement other than the Loan Documents to which one or more of Borrowers is a
party, which agreement relates to the borrowing of money by any Borrower from any Person, and such
default has a material adverse effect upon any Borrower’s ability to perform or the value or the
operation of a Property, or the security for the Loan;

                    (e) Any representation or warranty made by any Borrower, in, under or pursuant to
the Loan Documents was false or misleading in any material respect as of the date on which such
representation or warranty was made or deemed remade; provided, however, that if such
Borrower remedies the factual circumstances that created such false or misleading representation or

20

 

warranty within thirty (30) days after the earlier to occur of any Borrower’s discovery of such
factual circumstances or Lender’s written notice of such false or misleading representation or
 warranty, then no Event of Default shall be deemed to exist;

                    (f) Any claim or Lien shall be filed against a Property or any part thereof, whether
or not such Lien shall be prior to the Instrument, which shall be maintained for a period of thirty
(30) days after any Borrower is made or becomes aware of such claim or Lien without discharge,
satisfaction or adequate bonding;

                    (g) Any of the Loan Documents, the Environmental Indemnity or the Fraudulent
Conveyance Indemnity Agreement, at any time after their respective execution and delivery and for
any reason, other than an act or omission of Lender, shall cease to be in full force and effect or
be declared null and void, or shall cease to constitute valid and subsisting liens and/or valid and
perfected security interests in and to a Property, or any Borrower shall contest or deny in writing
that it has any further liability or obligation under any of the Loan Documents;

                    (h) Guarantor shall breach the Net Worth Covenant contained in the Guaranty; or

                    (i) Borrower shall breach any of its covenants in Section 8.23(a) or
Section 8.23(b) or Section 8.23(d) of this Agreement.

THEN and in any such event Lender may, by written notice delivered
to any Borrower, declare Borrowers to be in default. Upon the
occurrence of such event and the giving of such notice where
required, the same shall constitute an event of default (an “Event
of Default”).

Notwithstanding anything contained herein to the contrary, to the
extent an Event of Default occurs under Section 5.1(a) hereof,
Lender shall not exercise its remedies hereunder (except Lender’s
right to collect Late Charges (as defined in each Note) and interest
at the Default Rate (as defined in each Note)) if Borrower cures
such Event of Default within five (5) days of any such Event of
Default; provided that Borrower shall only have the right to
effectuate such cure once every twelve (12) calendar months.

               5.2 Bankruptcy. It shall also constitute an Event of Default and a bankruptcy default
(a “Bankruptcy Default”) hereunder without the requirement of any notice if one or more of the
following events shall have occurred and be continuing:

     (a) Any Borrower, or any general partner of any Borrower or any parent company of
such partner, or any manager or managing member of any Borrower, or any other direct owner of a
Property or any direct interest therein (individually, an “Affected Party”, collectively, the
“Affected Parties”), generally fails to pay its debts as they become due or admits in writing its
inability to pay its debts, or makes a general assignment for the benefit of creditors;

     (b) Any Affected Party commences any case, proceeding or other action seeking
reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts
under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeks to
have an order for relief entered against it as debtor, or seeks appointment of a receiver (a
“Receiver”), for it or for all or any substantial part of its property (collectively, a
“Proceeding”);

21

 

     (c) Any Affected Party shall take any action to authorize any of the actions set
forth above in Section 5.2(b);

     (d) Any Proceeding is commenced against any Affected Party, and such Proceeding (i)
results in an entry of an order for relief against it which is not fully stayed within seven (7)
Business Days after the entry thereof, or (ii) remains undismissed for an aggregate of forty-five
(45) days (whether or not consecutive); or

     (e) A Receiver shall have been appointed with respect to (i) any Affected Party; or
(ii) all or any substantial part of the property of any Affected Party.

          5.3 Acceleration. Upon the occurrence of a Bankruptcy Default, all of the
Indebtedness shall become immediately due and payable together with any prepayment fee due in
accordance with the terms of the Notes, without presentment, demand, protect or notice of any kind.
Upon the occurrence of any other Event of Default, Lender may at any time declare all of the
Indebtedness to be due and payable and the same shall thereupon become immediately due and payable,
together with any Prepayment Premium due in accordance with the terms of the Notes, without any
further presentment, demand, protect or notice of any kind. Upon the occurrence of an Event of
Default, Lender may, in its sole discretion, also do any of the following:

               (a) in person, by agent, or by a Receiver, and without regard to the adequacy of
security, the solvency of any Borrower or the condition of the Properties, enter upon and take
possession of one or more of the Properties, or any part thereof, in its own name and do any acts
which Lender deems necessary to preserve the value, marketability or rentability of such
Properties; sue for or otherwise collect the rents, issues and profits therefrom, including those
past due and unpaid, and apply the same, less costs and expenses of operation and collection,
including reasonable attorneys’ fees, against the Indebtedness, all in such order as Lender may
determine. The entering upon and taking possession of said property, the collection of such rents,
issues and profits and the application thereof as aforesaid shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to such notice;

               (b) commence an action to foreclose (non-judicially or judicially) one or more of
the Instruments in the manner provided thereunder or by law;

               (c) with respect to any Personalty (as defined in the applicable Instrument),
proceed as to both the real and personal property in accordance with Lender’s rights and remedies
in respect of the Property, or proceed to sell said Personalty separately and without regard to the
Land in accordance with Lender’s rights and remedies as to personal property;

               (d) deliver to any Borrower a written declaration of default and demand for sale,
and a written notice of default and election to cause one or more of the Properties to be sold,
which notice Lender shall cause to be duly filed for record.

          5.4 Definition of Materiality in Certain Circumstances. Lender hereby confirms that
for purposes of subsection 5.1(b) of this Agreement, an Event of Default shall not exist
for any breach of a “non-material obligation.” For purposes of this subsection 5.4, a
“non-material obligation” shall mean an agreement the breach of which would not have a material
adverse effect upon the business, properties or condition (financial or otherwise) or the
operations of Borrowers as a whole, or upon the Security Pool, as a whole.

22

 

          5.5 Multiple Obligations. Borrowers understand, acknowledge and agree that each of
the Notes is a separate and distinct legal obligation and that the execution of a single Collateral
Loan Agreement and references herein to the “Loan” is for purposes of administrative convenience
only. Borrowers further understand, acknowledge and agree that the occurrence of an Event of
Default under any of the Notes or other Loan Documents shall constitute an Event of Default under
all other Notes and other Loan Documents and shall entitle Lender to exercise all of its rights and
remedies under all of the Loan Documents, including, without limitation, accelerating the Maturity
Date of any or all of the Notes and foreclosing the liens of any or all of the Instruments in such
order and manner as Lender may elect in its sole and absolute discretion.

          5.6 Application of Proceeds. In the event of a foreclosure (non-judicial or judicial)
of any of the Instruments encumbering any of the Properties, Borrowers agree that Lender shall have
full and complete discretion to apply any proceeds from the sale of the applicable Property, after
payment of any and all costs of foreclosure, attorneys’ and trustee’s fees, and after satisfaction
of the foreclosed obligation (any such remaining proceeds being defined as the “Excess Proceeds”)
to the prepayment or repayment (together with applicable Prepayment Premium, if any) of the
indebtedness evidenced by any of the other Notes. Borrowers hereby irrevocably assign, transfer
and convey to Lender any and all of its right, title and interest in and to the Excess Proceeds and
consents to the prepayment or repayment of indebtedness herein above provided. Borrowers hereby
waive any right to require Lender to (i) marshal any assets of any Borrower (including, without
limitation, the Properties), or (ii) any right to require a sale in inverse order of alienation in
the event of foreclosure of the liens and security interests created by the Instruments or any of
the other Loan Documents. Following an Event of Default, all proceeds of payment or any other
recovery on the collateral for the Loan, including any payment or recovery on any Property, shall
be applied to the Indebtedness in such order and manner as Lender may elect in its sole and
absolute discretion.

     Section 6. Secondary Market Transactions.

          6.1 General. Borrower hereby acknowledges that Lender may in one or more transactions
(a) sell or securitize the Loan or portions thereof in one or more transactions through the
issuance of securities, which securities may be rated by the Rating Agencies, (b) sell or otherwise
transfer the Loan or any portion thereof one or more times (including selling or assigning its
duties, rights or obligations hereunder or under any Loan Document in whole, or in part, to a
servicer and/or a trustee), (c) sell participation interests in the Loan one or more times, (d)
re-securitize the securities issued in connection with any securitization, (e) further divide the
Loan into additional separate notes or components, (f) reallocate a portion of the Loan between the
Fixed Rate Notes, and/or (g) reallocate a portion of the Loan between the Floating Rate Notes, (the
transactions referred to in clauses (a) through (g) above, each a “Secondary Market
Transaction” and collectively “Secondary Market Transactions”). With respect to any
Secondary Market Transaction described in clauses (e) – (g) above, (i) such notes and note
components may be assigned different principal amounts and interest rates, so long as immediately
after the effective date of such modification, the aggregate amount of, and the weighted average of
the interest rates payable under, the Loan and such component note(s), equal the outstanding
Obligations and weighted average interest rate of the Notes, respectively, immediately prior to
such modification, (ii) such notes and note components may be assigned different principal amounts,
so long as immediately after the
effective date of such modification, the aggregate amount of each of the Fixed Rate Notes and
the Floating Rate Notes equal the aggregate amount of each of the Fixed Rate Notes and the Floating
Rate Notes, respectively, immediately prior to such modification, (iii) the principal balance of
the Fixed A-1 Note shall not be increased to an amount greater than $176,000,000.00 and (iii)
Borrower agrees to execute and deliver to Lender such amendments to the Loan Documents, title
insurance endorsements, legal opinions and other customary loan documentation as Lender may
reasonably require in connection therewith.

23

 

          6.2 Borrower Cooperation. Borrower shall execute and deliver to Lender such
documents, instruments, certificates, financial statements, assignments and other writings, do such
other acts and provide such information, and participate in such meetings and discussions, in each
case that are necessary to facilitate the consummation of each Secondary Market Transaction.

          6.3 Financial Statements. Prior to a Secondary Market Transaction, at Lender’s
request, Borrower shall deliver the reports, statements, and items required to be delivered
pursuant to Section 3.15 of each Instrument within twenty (20) days of the end of any calendar
month. Following a Secondary Market Transaction, if requested by Lender, Borrower shall deliver
the reports, statements, and items required to be delivered pursuant to Section 3.15 of each
Instrument on quarterly basis.

          6.4 Dissemination of Information. If Lender determines at any time to participate in
a Secondary Market Transaction, Lender may forward to each purchaser, transferee, assignee,
servicer, participant or investor in such securities (collectively, the “Investors”), any
Rating Agency rating such securities, any organization maintaining databases on the underwriting
and performance of commercial loans, trustee, counsel, accountant, and each prospective Investor,
all documents and information which Lender now has or may hereafter acquire relating to the Loan,
Borrower, any direct or indirect equity owner of Borrower, any guarantor, any indemnitor and the
Property, which shall have been furnished by Borrower any affiliate of Borrower, any guarantor, any
indemnitor, or any party to any Loan Document, or otherwise furnished in connection with the Loan,
as Lender in its discretion determines necessary or desirable.

          6.5 Change of Due Date. At any time prior to securitization of the Loan by Lender,
Lender shall have the right to change the Due Date to a day of the month other than as set forth in
the Note (such new date, the “New Due Date”) on thirty (30) days notice to Borrower;
provided, however, that any such change in the Due Date: (i) shall not modify the
amount of regularly scheduled monthly principal and interest payments, except that the first
payment of principal and interest payable on the New Due Date shall be accompanied by interest (as
calculated under the Notes) for the period from the Due Date in the month in which the New Due Date
first occurs to the New Due Date and (ii) shall extend the Maturity Date to the New Due Date
occurring in March 2012.

          6.6 Borrower Indemnification. In connection with any Secondary Market Transaction,
Borrower shall indemnify (a) the Indemnified Parties and (b) the party that has filed the
registration statement relating to the Secondary Market Transaction (the “Registration
Statement”), each of its directors and officers who have signed the Registration Statement and
each Person that controls such party within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, and the party named as depositor in any private placement
memorandum and each of its directors and officers who have signed the Registration Statement and
each Person that controls such party (collectively, the “Underwriter Group”), for any
Losses to which any of them may become subject (i) insofar as the Losses arise out of or are based
upon any untrue statement of any material fact made by Borrower or Guarantor with respect to
Borrower, its affiliates, Guarantor, the Property, or the Manager, or arise out of or are based
upon the omission by Borrower or Guarantor to state therein a material fact required to be stated
in
order to make such statements, in light of the circumstances under which they were made, not
misleading, or (ii) as a result of any untrue statement of material fact in any of the financial
statements of Borrower or Guarantor or the failure to include in such financial statements any
material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. In addition, in connection with the foregoing,
Borrower agrees to reimburse the Indemnified Party and the Underwriter Group for any legal or other
expenses reasonably incurred by the Indemnified Party and the Underwriter Group in connection with
investigating or defending the Losses.

24

 

          6.7 No Cost to Borrower. Notwithstanding anything to the contrary contained in this
Section 6, Lender shall pay all costs and expenses relating to a Secondary Market Transaction,
except that Borrower shall pay its own attorney’s fees and costs relating to any such Secondary
Market Transaction.

     Section 7. Multi-Borrower and Multi-Property Provisions

          7.1 Use of Terms. All references to “Borrower” in this Agreement shall be deemed to
refer to one or more Borrower, as the context requires. All references to “Property” in this
Agreement shall be deemed to refer to one or more of the properties identified on Exhibit
B, as the context requires. It is the intent of the parties hereto in making any determination
under the Loan Documents (including, without limitation, in determining whether (a) a breach of a
representation, warranty or a covenant has occurred, (b) there has occurred an Event of Default,
and (c) an event has occurred which would create recourse obligations under the Note) that any
breach, occurrence or event with respect to any Borrower or Property shall be deemed to be a
breach, occurrence or event with respect to all Borrowers and all Properties, and that all
Borrowers and/or all Properties need not have been involved with or be the subject of such breach,
occurrence or event in order for the same to be deemed such a breach, occurrence or event with
respect to every Borrower, every Property, and the Loan.

          7.2 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets.

               (a) Borrower acknowledges that Lender has made the Loan to Borrower upon the
security of its collective interest in the Property and in reliance upon the aggregate of the
Property taken together being of greater value as collateral security than the sum of each Property
taken separately. Borrower agrees that the Instruments are and will be cross-collateralized and
cross-defaulted with each other so that (i) an Event of Default under any of the Instruments shall
constitute an Event of Default under each of the other Instruments which secure the Note; (ii) an
Event of Default under the Note or this Agreement shall constitute an Event of Default under each
Instrument; (iii) each Instrument shall constitute security for the Note as if a single blanket
lien were placed on all of the Properties as security for the Note; and (iv) such
cross-collateralization shall in no event be deemed to constitute a fraudulent conveyance.

               (b) To the fullest extent permitted by law, Borrower, for itself and its successors
and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s partners and
others with interests in Borrower, and of the Property, or to a sale in inverse order of alienation
in the event of foreclosure of all or any of the Instruments, and agrees not to assert any right
under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation,
homestead exemption, the administration of estates of decedents, or any other matters whatsoever to
defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Property for
the collection of the Loan without any prior or different resort for collection or of the right of
Lender to the payment of the Indebtedness out of the net proceeds of the Property in preference to
every other claimant whatsoever. In addition, Borrower, for itself and its successors and assigns,
waives in the event of foreclosure of any or
all of the Instruments, any equitable right otherwise available to Borrower which would
require the separate sale of any portion of the Property or require Lender to exhaust its remedies
against any Property or any combination of the Properties before proceeding against any other
Property or combination of Properties; and further in the event of such foreclosure Borrower does
hereby expressly consents to and authorizes, at the option of Lender, the foreclosure and sale
either separately or together of any combination of the Properties.

25

 

          7.3 Joint and Several Liability. Each Borrower shall be jointly and severally liable
for payment of the Indebtedness and performance of all other obligations of all Borrowers (or any
of them) under this Agreement and any other Loan Document.

     Section 8. Miscellaneous.

          8.1 Amendments and Waivers. No amendment, modification, termination or waiver of any
provision of this Agreement, any loan document or of the Notes, or consent to any departure by any
Borrower therefrom, shall in any event be effective without the written concurrence of Lender and
Borrowers. No amendment, modification, termination or waiver of any provision of any Note shall be
effective without the written concurrence of the holder of that Note and Borrowers. Any waiver or
consent shall be effective only in the specific instance and for the specific purpose for which it
was given. No notice to or demand on any Borrower in any case shall entitle any Borrower to any
other or further notice or demand in similar or other circumstances. Any amendment, modification,
termination, waiver or consent effective in accordance with this Section 8.1 shall be
binding upon each holder of the Notes at the time outstanding, each future holder of the Notes,
and, if signed by Borrowers, on Borrowers. In the event of any inconsistency between the terms and
conditions of the other Loan Documents and this Agreement, the terms and conditions of this
Agreement shall control.

          8.2 Independence of Covenants. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or be otherwise within the limitations of,
another covenant shall not avoid the occurrence of an Event of Default or Potential Event of
Default if such action is taken or condition exists.

          8.3 Notices. Unless otherwise specifically provided herein, any notice, request,
demand, consent, approval, direction, agreement, or other communication (any “notice”) required or
permitted under this Agreement shall be in writing and shall be validly given if sent by a
nationally-recognized courier that obtains receipts, delivered personally by a courier that obtains
receipts, or mailed by United States certified mail (with return receipt requested and postage
prepaid) addressed to the applicable person as follows:

	 	 	 	 	 
	 

	 	If to
Borrowers:
	 	AMB-SGP California, LLC,
	 

	 	 	 	AMB-SGP CIF-California, LLC,
	 

	 	 	 	AMB-SGP CIF-I, LLC,
	 

	 	 	 	AMB-SGP Docks, LLC,
	 

	 	 	 	AMB-SGP Georgia, LLC,
	 

	 	 	 	AMB-SGP CIF-Illinois, L.P.,
	 

	 	 	 	AMB-SGP TX/IL Sub, LLC
	 

	 	 	 	c/o AMB Property Corporation
	 

	 	 	 	Pier 1, Bay 1
	 

	 	 	 	San Francisco, California 94111
	 

	 	 	 	Attention: Gayle P. Starr, Senior Vice President
	 
	 	 	 	 
	 

	 	With a copy of
notices
sent to
Borrowers
to:
	 	MORRISON & FOERSTER LLP
	 

	 	 	 	755 Page Mill Road
	 

	 	 	 	Palo Alto, California 94304
	 

	 	 	 	Attention: Philip J. Levine, Esq.

26

 

	 	 	 	 	 
	 

	 	If to Lender:
	 	PRUDENTIAL ASSET RESOURCES
	 

	 	 	 	2200 Ross Avenue, Suite 4900 E
	 

	 	 	 	Dallas, Texas 75201
	 

	 	 	 	Attention: Asset Management — Vice President
	 

	 	 	 	Reference Loan Nos. 706 107 030 / 706 107 029 / 706 107 031 / 406 107 028
	 
	 	 	 	 
	 

	 	With a copy of notices
sent to Lender to:
	 	PRUDENTIAL MORTGAGE CAPITAL COMPANY, LLC
	 

	 	 	 	100 Mulberry Street, 8th Floor
	 

	 	 	 	Gateway Center Four
	 

	 	 	 	Newark, New Jersey 07102
	 

	 	 	 	Attention: General Counsel
	 

	 	 	 	Reference Loan Nos. 406 107 028
	 
	 	 	 	 
	 

	 	With a copy of notices
sent to Lender to:
	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
	 

	 	 	 	Four Embarcadero Center, Suite 2700
	 

	 	 	 	San Francisco, California 94111
	 

	 	 	 	Attention: Regional Counsel
	 

	 	 	 	Reference Loan Nos. 706 107 030 / 706 107 029 / 706 107 031

Each notice shall be effective upon being so sent, delivered, or mailed, but the time period for
response or action shall run from the date of receipt as shown on the delivery receipt. Refusal to
accept delivery or the inability to deliver because of a changed address for which no notice was
given shall be deemed receipt. Any party may periodically change its address for notice and
specify up to two (2) additional addresses for copies by giving the other party at least ten (10)
days’ prior written notice.

          8.4 Survival of Warranties and Certain Agreements. All agreements, representations
and warranties made herein shall survive the execution and delivery of this Agreement, the making
of the Loans hereunder and the execution and delivery of the Notes.

          8.5 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the
part of Lender or any holder of any Note in the exercise of any power, right or privilege hereunder
or under the Notes shall impair such power, right or privilege or be construed to be a waiver of
any default or acquiescence therein, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other right, power or
privilege. All rights and remedies existing under this Agreement and the Notes are cumulative to,
and not exclusive of, any rights or remedies otherwise available.

          8.6 Severability. In case any provision in or obligation under this Agreement or the
Notes shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

          8.7 Headings. Sections and subsection headings in this Agreement are included herein
for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose or be given any substantive effect.

          8.8 Applicable Law. THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT (EXCEPT TO THE EXTENT
SUCH OTHER LOAN DOCUMENT CONTAINS A

27

 

CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCE IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES.

          8.9 Successors and Assigns; Subsequent Holders of Notes. This Agreement shall be
binding upon the parties hereto and their respective successors and assigns and shall inure to the
benefit of the parties hereto and the successors and assigns of Lender. The terms and provisions
of this Agreement shall inure to the benefit of any assignee or transferee of the Notes, and in the
event of such transfer or assignment, the rights and privileges herein conferred upon Lender shall
automatically extend to and be vested in such transferee or assignee, all subject to the terms and
conditions hereof. Borrowers’ rights or any interest therein hereunder may not be assigned without
the prior written consent of Lender.

          8.10 Consent to Jurisdiction and Service of Process; Waiver of Jury Trial. All
judicial proceedings arising out of or relating to this Agreement, any Note or other Loan Document
or any Obligation may be brought only in any state or Federal court of competent jurisdiction in
the State of Texas, and, by execution and delivery of this Agreement, each Borrower accepts for
itself and in connection with its properties, generally and unconditionally, the nonexclusive
jurisdiction of the aforesaid courts and waives any defense of forum non conveniens, and
irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement,
such Note, such other Loan Document or such Obligation; provided, however, that Lender in its sole
discretion shall have the right to commence proceedings with respect to any Collateral Document
(and the Note governed by the laws of such state) in the state where the Property secured by such
Collateral Document is located. ALL PARTIES TO THIS AGREEMENT IRREVOCABLY WAIVE ALL RIGHT TO TRIAL
BY JURY IN ANY JUDICIAL PROCEEDING ARISING OUT OR RELATING TO THIS AGREEMENT, ANY NOTE OR ANY
OBLIGATION. Each Borrower designates and appoints the Chief Financial Officer of AMB Property,
L.P. from time to time, with offices at c/o AMB Property Corporation, Pier 1, Bay 1, San Francisco,
California 94111, and such other Persons as may hereafter be selected by each Borrower irrevocably
agreeing in writing to so serve, as its agent to receive on its behalf service of all process in
any such proceedings in any such court, such service being hereby acknowledged by each Borrower to
be effective and binding service in any respect. A copy of any such process so served shall be
mailed by registered mail to such Borrower at its address provided in Section 8.3 above, except
that unless otherwise provided by applicable law, any failure to mail such copy shall not affect
the validity of service of process. If any agent appointed by any Borrower refuses to accept
service, each Borrower hereby agrees that service upon it by mail shall constitute sufficient
notice. Nothing herein shall affect the right to serve process in any other manner permitted by
law or shall limit the right of Lender to bring proceedings against any Borrower in the courts of
any other jurisdictions.

          8.11 Counterparts. This Agreement and any amendments, waivers, consents or
supplements may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed an original,
but all such counterparts together shall constitute but one and the same Agreement.

          8.12 Exhibits and Schedules. The exhibits and schedules annexed hereto are
incorporated herein and shall be a part of this Agreement.

          8.13 Confidentiality. Except as set forth in Section 6, each Borrower and Lender
shall each use reasonable efforts to keep confidential the terms and conditions of the Loan and not
to reveal such terms and conditions to any other Person except for their respective officers,
directors, attorneys, accountants, auditors and consultants (each of which shall similarly agree to
use such

28

 

reasonable efforts), the investors in any Borrower, a potential investor (whether by purchase,
participation or syndication) in all or a portion of the Loan (and, in connection therewith, to the
officers, directors, attorneys, accountants, auditors and consultants of each such potential
investor), internal disclosures in connection with its due diligence, or as may otherwise be
required by law or applicable regulations governing any Borrower or Lender. In the event any
disclosure is made, each Borrower and Lender agree that none of them shall have any liability to
the other or to any other person on account of such disclosure. Furthermore, none of the Loan
Documents which will be filed or recorded in any public records shall contain any reference,
directly or by cross-reference, to the foregoing undertaking. Except as set forth Section 6, any
written publicity initiated by Lender with respect to the Loan shall be subject to the approval of
Borrowers prior to its release. Notwithstanding the foregoing, with Borrower’s prior written
consent, such consent not to be unreasonably withheld, conditioned or delayed, Lender shall have
the right to issue press releases, advertisements and other promotional materials describing the
Loan (including the amount and purpose of the Loan) and Lender’s participation in the origination
of the Loan or the Loan’s including in any Secondary Market Transaction effectuated or to be
effectuated by Lender, provided that nothing herein shall restrict Lender’s rights set forth in
Section 6.4.

          8.14 Limited Recourse Liability. The provisions of Paragraphs 8, 9 and 10 of the
Notes are incorporated into this Agreement as if such provisions were set forth in their entirety
in this Agreement.

          8.15 Leasing Rights of Borrowers. Except in accordance with Paragraph 7(a) of the
Assignment of Leases, each Borrower covenants not to do any of the following without the prior
written consent of Lender: (i) alter, modify, amend or change the terms of any Lease, or (ii) give
any consent or permission or exercise any option required or permitted by the terms of any Lease,
or (iii) waive any obligation required to be performed by any lessee under any Lease, or (iv)
execute, cancel or terminate any Lease, or (v) accept a surrender of any Lease, or (vi) enter into
any Lease after the date hereof.

          8.16 Co-Lenders

               (a) All copies of documents, reports, requests and other delivery obligations of
Borrower required hereunder shall be delivered by Borrower to each Co-Lender.

               (b) Following the Closing Date (i) the liabilities of Lender shall be several and
not joint, and (ii) neither Co-Lender shall be responsible for the obligations of the other
Co-Lender. All indemnities by Borrower and obligations for costs, expenses, damages or advances
set forth herein shall run to and benefit each Co-Lender.

          8.17 Certain Additional Rights of Lender (VCOC). Notwithstanding anything to the
contrary which may be contained in this Agreement, Lender and any holder of any note representing
all or any portion of the Loan (“Noteholder”) shall have:

               (a) the right to call one annual meeting (at which meeting the Lender and the other
Noteholders who have similar rights under this Section 8.17(a) may be permitted to attend,
and any Noteholder may attend other meetings at such other times as the Lender or other Noteholders
who have similar rights under this Section 8.17(a) may be entitled to have) with Borrower’s
management regarding the significant business activities and business and financial developments of
the Borrower, provided, however, that such meetings shall not include discussions of environmental
compliance programs or disposal of Hazardous Materials (as defined in the Instrument).
Consultation meetings should occur at a mutually agreeable time and location; provided that the
Borrower shall be under no obligation to follow or implement any advice or recommendations of
Lender or any Noteholder

29

 

at any such meeting. Otherwise, the Borrower shall not be required to hold any other meetings
with Lender or any Noteholder unless it demonstrates to the reasonable satisfaction of the Borrower
that other times (but not more frequently than quarterly) are required under applicable law after
the date of this Agreement for Lender or any Noteholder to maintain its status as a “venture
capital operating company” (a “VCOC”) as such term is defined in the U.S. Department of Labor
Regulations codified at 29 C.F.R. Section 2510.3-101(d) (the “Plan Asset Regulation”);

               (b) the right, in accordance with the terms of this Agreement, subject to compliance
with applicable laws and confidentiality obligations to third parties, to examine the books and
records of Borrower at any time upon reasonable notice and to a reasonable extent; provided that
the rights granted in this Section 8.17(b) shall be exercised no more than once during any
twelve-month period or unless Lender or any Noteholder demonstrates to the reasonable satisfaction
of the Borrower that other times are required by applicable law after the date of this Agreement
for Lender or any Noteholder to maintain its status as a VCOC; provided further that Lender’s
rights under this paragraph shall be at Lender’s cost unless Borrower is otherwise obligated to pay
such costs pursuant to the Loan Documents; and

               (c) the right, in accordance with the terms of this Agreement, to receive all
financial reports required hereunder; provided, however, the obligation of the Borrower to deliver
the materials described in this paragraph shall be deemed satisfied if delivered by the Borrower to
the Lender and any Noteholder (it being understood that the Lender and any Noteholder shall be
entitled to distribute copies of such materials to each Lender or any Noteholder who have rights
under this paragraph).

     The aforementioned consultation rights are intended by Lender and each Noteholder to satisfy
the requirement of management rights for purposes of the Department of Labor “plan assets”
regulation 29 C.F.R., Section 2510.3-101.

     The rights described in this Section 8.17 may be exercised by Lender, any Noteholder
and any Person which is intended to qualify as a VCOC and owns directly or indirectly,
substantially all of the interests in Lender or any Noteholder.

          8.18 Note Registration. The Borrowers shall maintain, or cause to be maintained, (i)
a copy of each assignment agreement delivered to it and (ii) a registry within the meaning of US
Treasury Regulation Section 5(f).103-1(c) (the “Register”), in which it will register the name and
address of Lender and the name and address of each assignee of Lender under this Agreement, and the
principal amount of the Loans owing to each such Lender pursuant to the terms hereof and each
Assignment Agreement. The Borrowers shall treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary or any notation of ownership or other writing or any Note.
The Register shall be available for inspection by any Lender at the Borrowers’ principal place of
business, at any reasonable time and from time to time, upon reasonable prior notice.

          8.19 Lender Discretion. The Junior Lender shall make all determinations under
Section 3 and Section 4, provided that the Junior Lender’s determinations pursuant
to Section 3 and Section 4 shall be subject to confirmation by the Senior Lender.
The Junior Lender shall be reasonable in making all determinations under Section 3 or
Section 4 of this Agreement acting as it would for similar loans serviced for its own
account; notwithstanding the foregoing, to the extent required by Lender’s REMIC counsel, any
co-lender agreement, any pooling and servicing agreement or any similar agreement entered into in
connection with a Secondary Market Transaction, Lender’s determinations shall be

30

 

reasonable acting as would a reasonably prudent lender servicing, for its own account,
commercial mortgage loans similar to the Loan, in locations similar to those of the Properties.

          8.20 Further Assurances. Borrower shall execute and deliver to Lender such documents,
instruments, certificates, assignments and other writings, and do such other acts necessary, to (a)
evidence, preserve and/or protect the Property at any time securing or intended to secure the
Indebtedness, and/or (b) enable Lender to perfect, exercise and enforce Lender’s rights and
remedies under any Loan Document, as Lender shall reasonably require from time to time.

          8.21 Assignment of Loan Documents. If the entire outstanding Obligations are repaid
or prepaid in accordance with the Loan Documents, upon not less than thirty (30) days written
notice to Lender by Borrower and provided that the Loan Documents continue to secure a bona fide
obligation of Borrower, Lender agrees, in lieu of a release of any portion of the Property from the
lien of the Instruments pursuant to this Agreement, to assign the Note, the Instruments and the
other Loan Documents, all without recourse, covenant or warranty of any nature, express or implied,
to any party designated by Borrower (other than Borrower, an affiliate of Borrower or a nominee of
Borrower) provided that Borrower shall have first caused the same to be purchased (in the event of
a prepayment) for an amount equal to the outstanding Obligations (including, without limitation,
all unpaid principal, interest and any prepayment penalty or premium due). In addition, any such
assignment shall be conditioned on the following: (a) payment by Borrower of (i) Lender’s
reasonable fees and an administrative fee for processing assignments of mortgages; (ii) the
reasonable expenses of Lender incurred in connection therewith; and (iii) Lender’s reasonable
attorney’s fees for the preparation, delivery and performance of such an assignment; (b) if
applicable, Borrower shall have caused the delivery of an executed Statement of Oath under Section
275 of the New York Real Property Law; (c) such an assignment is not then prohibited by any
federal, state or local law, rule, regulation, order, or by any other governmental authority; and
(d) Borrower shall provide such other items, information and documents reasonably necessary in the
determination of Lender to effectuate such assignment. Borrower shall be responsible for all
taxes, recording fees and other charges payable in connection with any such assignments.

          8.22 Lender Statement of Loan Information. Lender hereby agrees to execute and
deliver to Borrower, within fifteen (15) business days after a written request therefor, which
request shall be limited to one time per any twelve (12) month period, a statement confirming the
outstanding principal amount of each Note, the rate of interest payable under each Note and
whether, to Lender’s knowledge, there are any modifications to the Loan Documents.

          8.23 Additional Covenants.

               (a) Unisource Lease Termination. Borrower hereby covenants to terminate or
cause the termination of the Unisource Lease and any right of first offer, right of first refusal,
purchase option, right to receive any “Offer to Purchase”, and any similar provision, contained
therein by February 15, 2007.

               (b) Additional Unisource Lease Covenant. Borrower hereby covenants not to
take any action which could give rise to an obligation on behalf of Borrower to deliver an “Offer
to Purchase” (as defined in the Unisource Lease) to the tenant under the Unisource Lease.

               (c) Cash Management. Borrower shall comply and cause Manager and each of
their respective affiliates to comply with the terms and provisions of the Cash Management
Agreement.

31

 

               (d) Intentionally Omitted.

     Section 9. Prepayment. Borrower shall not be permitted at any time to prepay all or
any part of the Loan except as expressly provided in this Section 9. No principal amount
repaid may be reborrowed. Any capitalized terms used in this Section 9 and not defined in
this Agreement shall have their respective meanings ascribed to them in the applicable Note.

          9.1 Additional Defined Terms.

               (a) The “Discount Rate” is the rate which, when compounded monthly, is: (i) in the
case of the Fixed A-1 Note, equivalent to the Treasury Rate (defined below), when compounded
semi-annually and (ii) in the case of the Fixed B-1 Note, equivalent to the Treasury Rate (defined
below) plus 50 basis points, when compounded semi-annually.

               (b) The “Treasury Rate” is the semi-annual yield on the Treasury Constant Maturity
Series with maturity equal to the remaining weighted average life of the Loan, for the week prior
to the prepayment date, as reported in Federal Reserve Statistical Release H.15 — Selected Interest
Rates, conclusively determined by Lender (absent a clear mathematical calculation error) on the
prepayment date. The rate will be determined by linear interpolation between the yields reported
in Release H.15, if necessary. If Release H.15 is no longer published, Lender shall select a
comparable publication to determine the Treasury Rate.

          9.2 Fixed A-1 Note.

               (a) The Fixed A-1 Note may be prepaid, commencing on February 14, 2009, in whole or
in part, upon at least thirty (30) days’ (but not more than ninety (90) days’) prior written notice
to Lender and upon payment of all accrued interest (and other amounts due under the Fixed A-1 Note)
and a prepayment premium (“Fixed A-1 Prepayment Premium”) equal to the greater of (1) the product
of (a) one percent (1%) of the principal amount being prepaid multiplied by (b) the quotient of (i)
the number of full months remaining until the Maturity Date divided by (ii) the number of full
months comprising the term of the Loan, or (2) the Present Value of the Fixed A-1 Note (defined
below) less the amount of principal and accrued interest (if any) being prepaid, calculated as of
the prepayment date. The Fixed A-1 Prepayment Premium shall be due and payable, except as provided
in this Agreement, the Instrument, or as limited by law, upon any prepayment of the Fixed A-1 Note,
whether voluntary or involuntary, and Lender shall not be obligated to accept any prepayment of the
Fixed A-1 Note unless it is accompanied by the Fixed A-1 Prepayment Premium (if any), all accrued
interest and all other amounts due under the Fixed A-1 Note. Lender shall notify Borrower of the
amount and calculation of the Fixed A-1 Prepayment Premium. Borrower agrees that (a) Lender shall
not be obligated to actually reinvest the amount prepaid in any Treasury obligation and (b) the
Fixed A-1 Prepayment Premium is directly related to the damages that Lender will suffer as a result
of the prepayment. The “Present Value of the Fixed A-1 Note” shall be determined by discounting
all scheduled payments remaining to the Maturity Date attributable to the amount being prepaid at
the Discount Rate (defined above); provided that if the prepayment occurs on a date other than a
Due Date, the actual number of days remaining from the date of prepayment to the next Due Date will
be used to discount within such period. If any such prepayment is not made on a Due Date, Borrower
shall also pay to Lender interest calculated at the Note Rate that would have accrued on such
amount of the Balance prepaid through and excluding the subsequent Due Date.

               (b) Notwithstanding the foregoing, the Fixed A-1 Note may be prepaid, commencing on
September 14, 2011, in an amount, which together with all other amounts prepaid on the Fixed A-1
Note on or after September 14, 2011, does not exceed one-half (1/2) of the

32

 

principal balance of the
Fixed A-1 Note on September 14, 2011, upon at least thirty (30) days’ prior
written notice to Lender and upon payment of all accrued interest (and other amounts due under
the Fixed A-1 Note, but there shall be no Fixed A-1 Prepayment Premium assessed against Borrower by
reason of such prepayment). If any such prepayment is not made on a Due Date, Borrower shall also
pay to Lender interest calculated at the Note Rate that would have accrued on such amount of the
Balance prepaid through and excluding the subsequent Due Date.

               (c) Notwithstanding the foregoing, commencing on January 14, 2012, Borrower may
prepay the Fixed A-1 Note, in whole or in part, upon at least thirty (30) days’ prior written
notice to Lender and upon payment of all accrued interest (and other amounts due under the Fixed
A-1 Note, but there shall be no Fixed A-1 Prepayment Premium assessed against Borrower by reason of
such prepayment). If any such prepayment is not made on a Due Date, Borrower shall also pay to
Lender interest calculated at the Note Rate that would have accrued on such amount of the Balance
prepaid through and excluding the subsequent Due Date.

               (d) Notwithstanding the foregoing, in connection with any prepayment resulting from
Lender applying insurance or condemnation proceeds to reduce the outstanding principal balance of
the Fixed A-1 Note as provided in the Loan Documents, so long as no Event of Default has occurred,
no Fixed A-1 Prepayment Premium shall be due. No notice of prepayment shall be required under the
circumstance specified in the preceding sentence.

          9.3 Fixed B-1 Note.

               (a) The Fixed B-1 Note may be prepaid, commencing on February 14, 2009, in whole or
in part, upon at least thirty (30) days’ (but not more than ninety (90) days’) prior written notice
to Lender and upon payment of all accrued interest (and other amounts due under the Fixed B-1 Note)
and prepayment premium (“Fixed B-1 Prepayment Premium”) equal to the greater of (1) the product of
(a) one percent (1%) of the principal amount being prepaid multiplied by (b) the quotient of (i)
the number of full months remaining until the Maturity Date divided by (ii) the number of full
months comprising the term of the Loan, or (2) the Present Value of the Fixed B-1 Note (defined
below) less the amount of principal and accrued interest (if any) being prepaid, calculated as of
the prepayment date. The Fixed B-1 Prepayment Premium shall be due and payable, except as provided
in this Agreement, the Instrument, or as limited by law, upon any prepayment of the Fixed B-1 Note,
whether voluntary or involuntary, and Lender shall not be obligated to accept any prepayment of the
Fixed B-1 Note unless it is accompanied by the Fixed B-1 Prepayment Premium (if any), all accrued
interest and all other amounts due under the Fixed B-1 Note. Lender shall notify Borrower of the
amount and calculation of the Fixed B-1 Prepayment Premium. Borrower agrees that (a) Lender shall
not be obligated to actually reinvest the amount prepaid in any Treasury obligation and (b) the
Fixed B-1 Prepayment Premium is directly related to the damages that Lender will suffer as a result
of the prepayment. The “Present Value of the Fixed B-1 Note” shall be determined by discounting
all scheduled payments remaining to the Maturity Date attributable to the amount being prepaid at
the Discount Rate (defined above); provided that if the prepayment occurs on a date other than a
Due Date, the actual number of days remaining from the date of prepayment to the next Due Date will
be used to discount within such period.

               (b) Notwithstanding the foregoing, the Fixed B-1 Note may be prepaid, commencing on
September 14, 2011, in an amount, which together with all other amounts prepaid on the Fixed B-1
Note or after September 14, 2011, does not exceed one-half (1/2) of the principal balance of the
Fixed B-1 Note on September 14, 2011, upon at least thirty (30) days’ prior written notice to
Lender and upon payment of all accrued interest (and other amounts due under the Fixed B-1 Note,
but there shall be no Fixed B-1 Prepayment Premium assessed against Borrower by reason of such
prepayment).

33

 

               (c) Notwithstanding the foregoing, commencing on January 14, 2012, Borrower may
prepay the Fixed B-1 Note, in whole or in part, upon at least thirty (30) days’ prior written
notice to Lender and upon payment of all accrued interest (and other amounts due under the Fixed
B-1 Note, but there shall be no Fixed B-1 Prepayment Premium assessed against Borrower by reason of
such prepayment).

               (d) Notwithstanding the foregoing, in connection with any prepayment resulting from
Lender applying insurance or condemnation proceeds to reduce the outstanding principal balance of
the Fixed B-1 Note as provided in the Loan Documents, so long as no Event of Default has occurred,
no Fixed B-1 Prepayment Premium shall be due. No notice of prepayment shall be required under the
circumstance specified in the preceding sentence.

     9.4 Floating A-2 Note.

               (a) Commencing on August 14, 2007, the Floating A-2 Note may be prepaid, in whole or
in part, provided that:

                    (i) written notice of such prepayment is received by Lender not less than thirty
(30) days or more than ninety (90) days prior to the date of such prepayment, which notice, once
given, shall be irrevocable;

                    (ii) Borrower pays in full (A) all accrued interest and all other sums due under the
Floating A-2 Note, (B) all actual out-of-pocket costs incurred by Lender in connection with such
prepayment, and (C) if and to the extent that the Reference Rate is then applicable in respect of
the Floating A-2 Note, any prepayment of the Floating A-2 Note shall not be made other than on a
Due Date unless such prepayment is accompanied by the payment of a prepayment fee (the “Floating
A-2 Breakage Fee”) in an amount equal to the applicable Interest Compensation Sum (if any);
provided, however, that Lender shall not have any obligation to cancel any contract that
Lender or the Treasury Department of Lender may have entered into in order to obtain the Reference
Rate prior to the maturity of such contract, and provided further that the amount due as
the Floating A-2 Breakage Fee shall be without duplication to amounts owed pursuant to Paragraph
1(a)(v) of the Floating A-2 Note;

                    (iii) Borrower pays a prepayment premium (the “Floating A-2 Prepayment Premium”),
which Floating A-2 Prepayment Premium shall be (A) in addition to the outstanding principal balance
of the Floating A-2 Note, accrued interest due under the Floating A-2 Note, and any Floating A-2
Breakage Fee under the Floating A-2 Note, and (B) calculated as follows:

	 	 	 
	Date	 	Floating A-2 Prepayment Premium
	 	 	 
	On or after August 14, 2007 but prior to
February 14, 2009
	 	Floating A-2 Spread Maintenance
	 	 	 
	On or after February 14, 2009
	 	Zero

     “Floating A-2 Spread Maintenance” shall mean an amount equal to the product of (i) eighty-one
hundredths of one percent (0.81%), (ii) the principal amount of the Floating A-2 Note being
prepaid,

34

 

and (iii) a fraction whose numerator is (a) the number of days remaining from the date of
prepayment to but excluding February 14, 2009 and whose denominator is (b) 365.

               (b) Notwithstanding the foregoing, (i) no Floating A-2 Prepayment Premium shall be
due if the Floating A-2 Note is prepaid, in whole or in part, on or after February 14, 2009, and
(ii) if Lender has reasonably determined that any amounts will actually become payable by Borrower
pursuant to Paragraph 1(a)(iv) or Paragraph 1(a)(v) of the Floating A-2 Note, then Borrower shall
be entitled to prepay the Floating A-2 Note in its entirety without payment of any Floating A-2
Prepayment Premium within ninety (90) days after written notification thereof from Lender.

               (c) All sums payable pursuant to Section 9.4(a) above shall also be due and
payable by Borrower upon demand in the event of any involuntary prepayments or any acceleration of
the Floating A-2 Note or any indebtedness secured by the Instrument, unless no Event of Default has
occurred and the prepayment results from a condemnation or casualty loss. In the event that any
Floating A-2 Breakage Fee is due hereunder, Lender shall deliver to Borrower a statement setting
forth the amount and determination of the Floating A-2 Breakage Fee, and, provided that Lender
shall have in good faith applied the applicable formula, Borrower shall not have the right to
challenge the calculation or the method of calculation set forth in any such statement in the
absence of manifest error. Lender shall not be obligated or required to have actually reinvested
the prepaid principal balance as a condition to receiving the Floating A-2 Breakage Fee. In
addition to the aforesaid Floating A-2 Breakage Fee and without waiving any prepayment condition,
if, upon any such prepayment, the aforesaid prior written notice has not been timely received by
Lender, and the prepayment is accepted by Lender, the Floating A-2 Breakage Fee shall be increased
by an amount equal to the lesser of (i) thirty (30) days’ unearned interest computed on the
outstanding principal balance of the Floating A-2 Note so prepaid and (ii) unearned interest
computed on the outstanding principal balance of the Floating A-2 Note so prepaid for the period
from, and including, the date of prepayment through the otherwise stated Maturity Date of the
Floating A-2 Note.

               (d) Except as otherwise expressly provided in Sections 9.4(a) and 9.4(b) above, the
Floating A-2 Breakage Fee provided above shall be due, to the extent permitted by applicable law,
under any and all circumstances where all or any portion of the Floating A-2 Note is paid prior to
the Maturity Date, whether such prepayment is voluntary or involuntary, even if such prepayment
results from Lender’s exercise of its rights upon Borrower’s default and acceleration of the
Maturity of the Floating A-2 Note (irrespective of whether foreclosure proceedings have been
commenced), and shall be in addition to any other sums due hereunder or under any of the other Loan
Documents. No tender of a prepayment of the Floating A-2 Note with respect to which a Floating A-2
Breakage Fee or other prepayment fee or reimbursement of costs is due shall be effective unless
such prepayment is accompanied by the applicable Floating A-2 Breakage Fee, prepayment fee or cost
reimbursement (if any).

               (e) Notwithstanding the foregoing, in connection with any prepayment resulting from
Lender applying insurance or condemnation proceeds to reduce the outstanding principal balance of
the Floating A-2 Note as provided in the Loan Documents, so long as no Event of Default has
occurred, no Floating A-2 Prepayment Premium shall be due. No notice of prepayment shall be
required under the circumstance specified in the preceding sentence.

     9.5 Floating B-2 Note.

               (a) Commencing on August 14, 2007, the Floating B-2 Note may be prepaid, in whole or
in part, provided that:

35

 

                    (i) written notice of such prepayment is received by Lender not less than thirty
(30) days or more than ninety (90) days prior to the date of such prepayment, which notice, once
given, shall be irrevocable;

                    (ii) Borrower pays in full (A) all accrued interest and all other sums due under the
Floating B-2 Note, (B) all actual out-of-pocket costs incurred by Lender in connection with such
prepayment, and (C) if and to the extent that the Reference Rate is then applicable in respect of
the Floating B-2 Note, any prepayment of the Floating B-2 Note shall not be made other than on a
Due Date unless such prepayment is accompanied by the payment of a prepayment fee (the “Floating
B-2 Breakage Fee”) in an amount equal to the applicable Interest Compensation Sum (if any);
provided, however, that Lender shall not have any obligation to cancel any contract that
Lender or the Treasury Department of Lender may have entered into in order to obtain the Reference
Rate prior to the maturity of such contract, and provided further that the amount due as
the Floating B-2 Breakage Fee shall be without duplication to amounts owed pursuant to Paragraph
1(a)(v) of the Floating B-2 Note;

                    (iii) Borrower pays a prepayment premium (the “Floating B-2 Prepayment Premium”),
which Floating B-2 Prepayment Premium shall be (A) in addition to the outstanding principal balance
of the Floating B-2 Note, accrued interest due under the Floating B-2 Note, and any Floating B-2
Breakage Fee under the Floating B-2 Note, and (B) calculated as follows:

	 	 	 
	Date	 	Floating B-2 Prepayment Premium
	 	 	 
	On or after August 14, 2007 but prior to
February 14, 2009
	 	Floating B-2 Spread Maintenance
	 	 	 
	On or after February 14, 2009
	 	Zero

     “Floating B-2 Spread Maintenance” shall mean an amount equal to the product of (i) one and
thirty-five hundredths of one percent (1.35%), (ii) the principal amount of the Floating B-2 Note
being prepaid, and (iii) a fraction whose numerator is (a) the number of days remaining from the
date of prepayment to but excluding February 14, 2009 and whose denominator is (b) 365.

               (b) Notwithstanding the foregoing, (i) no Floating B-2 Prepayment Premium shall be
due if the Floating B-2 Note is prepaid, in whole or in part, on or after February 14, 2009, and
(ii) if Lender has reasonably determined that any amounts will actually become payable by Borrower
pursuant to Paragraph 1(a)(iv) or Paragraph 1(a)(v) of the Floating B-2 Note, then Borrower shall
be entitled to prepay the Floating B-2 Note in its entirety without payment of any Floating B-2
Prepayment Premium within ninety (90) days after written notification thereof from Lender.

               (c) All sums payable pursuant to Section 9.5(a) above shall also be due and
payable by Borrower upon demand in the event of any involuntary prepayments or any acceleration of
the Floating B-2 Note or any indebtedness secured by the Instrument, unless no Event of Default has
occurred and the prepayment results from a condemnation or casualty loss. In the event that any
Floating B-2 Breakage Fee is due hereunder, Lender shall deliver to Borrower a statement setting
forth the amount and determination of the Floating B-2 Breakage Fee, and, provided that Lender
shall have in good faith applied the applicable formula, Borrower shall not have the right to
challenge the

36

 

calculation or the method of calculation set forth in any such statement in the
absence of manifest error.
Lender shall not be obligated or required to have actually reinvested the prepaid principal
balance as a condition to receiving the Floating B-2 Breakage Fee. In addition to the aforesaid
Floating B-2 Breakage Fee and without waiving any prepayment condition, if, upon any such
prepayment, the aforesaid prior written notice has not been timely received by Lender, and the
prepayment is accepted by Lender, the Floating B-2 Breakage Fee shall be increased by an amount
equal to the lesser of (i) thirty (30) days’ unearned interest computed on the outstanding
principal balance of the Floating B-2 Note so prepaid and (ii) unearned interest computed on the
outstanding principal balance of the Floating B-2 Note so prepaid for the period from, and
including, the date of prepayment through the otherwise stated Maturity Date of the Floating B-2
Note.

               (d) Except as otherwise expressly provided in Sections 9.5(a) and 9.5(b) above, the
Floating B-2 Breakage Fee provided above shall be due, to the extent permitted by applicable law,
under any and all circumstances where all or any portion of the Floating B-2 Note is paid prior to
the Maturity Date, whether such prepayment is voluntary or involuntary, even if such prepayment
results from Lender’s exercise of its rights upon Borrower’s default and acceleration of the
Maturity of the Floating B-2 Note (irrespective of whether foreclosure proceedings have been
commenced), and shall be in addition to any other sums due hereunder or under any of the other Loan
Documents. No tender of a prepayment of the Floating B-2 Note with respect to which a Floating B-2
Breakage Fee or other prepayment fee or reimbursement of costs is due shall be effective unless
such prepayment is accompanied by the applicable Floating B-2 Breakage Fee, prepayment fee or cost
reimbursement (if any).

               (e) Notwithstanding the foregoing, in connection with any prepayment resulting from
Lender applying insurance or condemnation proceeds to reduce the outstanding principal balance of
the Floating B-2 Note as provided in the Loan Documents, so long as no Event of Default has
occurred, no Floating B-2 Prepayment Premium shall be due. No notice of prepayment shall be
required under the circumstance specified in the preceding sentence.

          9.6 Application of Prepayments.

               (a) The prepayments shall be applied in such order as Lender shall determine;
provided, however, that so long as no Event of Default has occurred, Borrower shall have the right,
in its sole discretion, to determine the allocation of prepayments between (i) the Floating Rate
Notes and (ii) the Fixed Rate Notes; provided further that (i) payments allocated to the Floating
Rate Notes shall be applied pro rata to each of the Floating Rate Notes based on their outstanding
principal balance and (ii) payments allocated to the Fixed Rate Notes shall be applied pro rata to
each of the Fixed Rate Notes based on their outstanding principal balance. Notwithstanding the
foregoing to the contrary, no prepayment shall be permitted under this Section 9.6 if not otherwise
permitted pursuant to Sections 9.1 — 9.5.

     Section 10. Insurance.

          10.1 Property and Time Element Insurance. Borrower shall keep the Property insured
for the benefit of Borrower and Lender (with Lender named as mortgagee) by (i) an “all risk”
property insurance policy with an agreed amount endorsement for Full Replacement Cost (defined
below) without any coinsurance provisions or penalties, or the broadest, subject to the limitations
on terrorism and earthquake coverage set forth in this Section 10.1, all-risks of direct physical
loss form of coverage commercially available, in an amount sufficient to prevent Lender
from ever becoming a coinsurer under the policy or Laws (as defined each Instrument), and with a
deductible not to exceed Fifty Thousand Dollars ($50,000.00); provided, however that so long as the
original Borrower or a Permitted

37

 

Transferee shall own the Property, such “all-risk” policy may have
either (A) a deductible not to exceed
Two Hundred and Fifty Thousand Dollars ($250,000.00) or (B) industry standard percentage
deductibles (not in excess of ten percent) for loss arising from catastrophic perils including
earthquake, flood, windstorm and other natural phenomenon; (ii) a policy or endorsement insuring
against acts of terrorism, (provided however, for so long as the Property is owned by the original
Borrower or a Permitted Transferee, if the Terrorism Risk Insurance Act of 2002, Public Law 107-297
is no longer in effect, in no event shall Borrower be obligated to spend an amount in excess of
$215,000.00 per annum (such amount is hereinafter, the “Terrorism Cost Cap”) and provided
further in the event that the cost to Borrower to maintain the terrorism insurance described in
this Section 10.1 (together with the terrorism insurance described in Section 10.2) exceeds the
Terrorism Cost Cap per annum, Borrower shall maintain so much terrorism insurance described in this
Section 10.1 and Section 10.2 as can be maintained for the Terrorism Cost Cap per annum); (iii)
[INTENTIONALLY DELETED]; (iv) a policy or endorsement providing business income insurance
(including business interruption insurance, extra expense insurance or rent insurance)
on an actual loss sustained basis in an amount equal to at least one (1) year’s total income from
the Property including all rents plus all other pro forma rental annual income such as
percentage rent and tenant reimbursements of fixed and continuing operating expenses;
(v) a policy or endorsement insuring against damage by flood if the Property is located in a
Special Flood Hazard Area identified by the Federal Emergency Management Agency or any successor or
related government agency as a 100 year flood plain currently classified as Flood Insurance Rate
Map Zones “A”, “AO”, “AH”, “A1-A30”, “AE”, “A99”, “V”, “V1-V30”, and “VE”, under which flood
insurance has been made available under the Flood Acts, in an amount equal to the lesser of (1) the
Allocable Loan Amount (as defined in the Loan Agreement) with respect to the Property or (2) the
maximum limit of coverage available for the Property under the Flood Acts; (vi) a policy or
endorsement covering against damage or loss from (A) sprinkler system leakage and (B) boilers,
boiler tanks, HVAC systems, heating and air-conditioning equipment, pressure vessels, auxiliary
piping, and similar apparatus, in the amount reasonably required by Lender; (vii) during the period
of any construction, repair, restoration, or replacement of the Property, a standard builder’s risk
policy with extended coverage (or its equivalent) in an amount at least equal to the Full
Replacement Cost of such Property, and worker’s compensation, in statutory amounts; and (viii) a
policy or endorsement covering against damage or loss by earthquake and other natural phenomenon in
the amounts reasonably required by Lender, if other institutional owners of real property
customarily carry insurance against damage or loss by earthquake for properties which are similar
in kind and similarly situated to the Property (provided that, notwithstanding the foregoing,
Borrower shall be required to maintain earthquake insurance in amounts reasonably required by
Lender with respect to each Earthquake Building (as defined below) for which Borrower has not (i)
completed the seismic work identified in the Post Closing Obligations Letter and (ii) delivered a
PML report in form and substance reasonably acceptable to Lender reflecting a PML of less than or
equal to twenty percent (20%)). “Full Replacement Cost” shall mean the one hundred percent (100%)
replacement cost of the Property, without allowance for depreciation and exclusive of the cost of
excavations, foundations, footings, and value of land, and shall be subject to verification by
Lender. Full Replacement Cost will be determined, at Borrower’s expense, periodically
(but at least five (5) business days prior to policy expiration or renewal) by the insurance
company or an appraiser, engineer, architect, or contractor approved by said company and Lender.
“Earthquake Building” shall mean each of (i) 20640 — 20810 Fordyce Avenue at the Property known as
Carson, (ii) 48366 Milmont Ave at the Property known as Milmont Page Business Center, (iii) 48340
Milmont Ave at the Property known as Milmont Page Business Center, (iv) 48438 Milmont Ave. at the
Property known as Milmont Page Business Center, (v) 2960 — 2976 Alvarado Street at the Property
known as Alvarado Business Center, and (vi) 2992 — 2998 Alvarado Street at the Property known as
Alvarado Business Center.

          10.2 Liability and Other Insurance. Borrower shall maintain commercial general
liability insurance with per occurrence limits of $1,000,000, a products/completed operations limit
of $2,000,000, and a general aggregate limit of $2,000,000, with an excess/umbrella liability
policy

38

 

of not less than $10,000,000 per occurrence and annual aggregate covering Borrower, as
direct insured,
with Lender named as an additional insured, against claims for bodily injury or death or
property damage occurring in, upon, or about the Property. In addition to any other requirements,
such commercial general liability and excess/umbrella liability insurance shall provide insurance
against acts of terrorism (provided that, for so long as the Property is owned by the original
Borrower or a Permitted Transferee, such terrorism insurance together with the terrorism insurance
required under Section 10.1 hereof shall not exceed the Terrorism Cost Cap per annum and provided
further in the event that the cost to Borrower to maintain the terrorism insurance described in
this Section 10.2 together with the terrorism insurance described in Section 10.1 exceeds the
Terrorism Cost Cap per annum, Borrower shall maintain so much terrorism insurance described in
Section 10.1 and Section 10.2 as can be maintained for the Terrorism Cost Cap per annum), or such
coverage shall be provided by separate policies or endorsements. The insurance policies shall also
include operations and blanket contractual liability coverage which insures contractual liability
under the indemnifications set forth in Section 8.02 of the Instruments (but such coverage or the
amount thereof shall in no way limit such indemnifications). Upon request, Borrower shall also
carry additional insurance or additional amounts of insurance covering Borrower or the Property as
Lender shall reasonably require.

          10.3 Form of Policy. All insurance required under this Section 10 shall be fully paid
for, non-assessable, and the policies shall contain such provisions and endorsements as Lender
shall reasonably require. The policies shall be issued by insurance companies authorized to do
business in the states of each Property State (as defined in each Instrument), approved by Lender,
and must have and maintain (i) a current financial strength rating of “A-, VIII” (or higher) from
A.M. Best or equivalent (or if a rating by A.M. Best is no longer available, a similar rating from
a similar or successor service) and (ii) a claims paying ability of “A” or better by at least two
of the Rating Agencies one of which shall be Standard & Poor’s; provided that if the required
insurance is issued by a syndicate of insurers, if (1) there are 4 or fewer members of the
syndicate, at least seventy-five (75%) of the coverage will be provided by insurers having a claims
paying ability rating by Standard & Poor’s not lower than “A-” and the balance of the coverage is,
in each case, with insurers having a claims paying ability rating by Standard & Poor’s of not lower
than “BBB” or (2) there are 5 or more members of the syndicate, at least sixty (60%) of the
coverage will be provided by insurers having a claims paying ability rating by Standard & Poor’s
not lower than “A-” and the balance of the coverage is, in each case, with insurers having a claims
paying ability rating by Standard & Poor’s of not lower than “BBB”; provided further that in each
of the foregoing clauses (1) or (2), the first loss risk is borne by the insurers having a claims
paying rating by Standard & Poor’s of not lower than “A-”. Notwithstanding the foregoing in the
preceding sentence, the insurance policies in place on the date hereof which have been reviewed and
approved by Lender are acceptable; provided that such approval shall not extend to any replacement
or renewal insurance policy (unless the insurer with respect to each portion of such replacement or
renewal policy has a Standard & Poor’s claims paying rating which is equal to or greater than that
of the current insurer’s current Standard & Poor’s claims paying rating with respect to such
portion) or to any insurance policy which is issued by an insurance company whose claims paying
ability is downgraded after the date hereof. In addition, all policies shall (i) include a
standard mortgagee clause, without contribution, in the name of Lender, (ii) provide that they
shall not be canceled, amended, or materially altered (including reduction in the scope or limits
of coverage) without at least thirty (30) days’ prior written notice to Lender except in the event
of cancellation for non-payment of premium, in which case only ten (10) days’ prior written notice
will be given to Lender, and (iii) include a waiver of subrogation clause substantially equivalent
to the following: “The Company may require from the Insured an assignment of all rights of recovery
against any party for loss to the extent that payment therefor is made by the Company, but the
Company shall not acquire any rights of recovery which the Insured has expressly waived prior to
loss, nor shall such waiver affect the Insured’s rights under this policy.”

39

 

          10.4 Original Policies. Borrower shall deliver to Lender (i) original or certified
copies of all policies (and renewals) required under this Section 10 and (ii) receipts evidencing
payment of all premiums on such policies (or letter evidencing payment from an authorized
agent) and evidence of policy renewal (or evidence of substitute coverage) at least five (5) days
prior to policy expiration. If original and renewal policies are unavailable or if coverage is
under a blanket policy, Borrower shall deliver duplicate originals, or, if unavailable, original
ACORD 27 and ACORD 25-S certificates (or equivalent certificates) evidencing that such policies are
in full force and effect together with certified copies of the original primary policies once
issued by the insurance carrier.

          10.5 General Provisions. Borrower shall not carry separate or additional insurance
concurrent in form or contributing in the event of loss with that required under this Section 10
unless endorsed in favor of Lender as per this Section 10 and approved by Lender in all respects.
In the event of foreclosure of this Instrument or other transfer of title or assignment of the
Property in extinguishment, in whole or in part, of the Obligations, all right, title, and interest
of Borrower in and to all policies of insurance then in force regarding the Property and all
proceeds payable thereunder and unearned premiums thereon shall immediately vest in the purchaser
or other transferee of the Property. No approval by Lender of any insurer shall be construed to be
a representation, certification, or warranty of its solvency. No approval by Lender as to the
amount, type, or form of any insurance shall be construed to be a representation, certification, or
warranty of its sufficiency. Borrower shall comply with all insurance requirements and shall not
cause or permit any condition to exist which would be prohibited by any insurance requirement or
would invalidate the insurance coverage on the Property.

          10.6 Waiver of Subrogation. Borrower and Lender each waive and release the other from
any and all liability or responsibility to the other or anyone claiming by, through or under them
by way of subrogation or otherwise for any liability or loss resulting from or relating to any
damage to the Property caused by fire or any other casualty, even if such fire or other casualty
shall have been caused by the fault or negligence of the other party or anyone for whom such party
may be responsible.

[Signature pages follow]

40

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by a duly authorized officer of each
of Borrower and Lender as of the date first above written.

	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	AMB-SGP CALIFORNIA, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	AMB-SGP Operating Partnership, a Delaware limited
	 

	 	 	 	partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	AMB Property, L.P., a Delaware limited
	 

	 	 	 	partnership, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,
	 

	 	 	 	a Maryland corporation, its general partner

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

	 	 	 	 	 
	 	 	AMB-SGP CIF-CALIFORNIA, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	AMB-SGP Operating Partnership, a Delaware limited
	 

	 	 	 	partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	AMB Property, L.P., a Delaware limited
	 

	 	 	 	partnership, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,
	 

	 	 	 	a Maryland corporation, its general partner

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	AMB-SGP CIF-I, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	AMB-SGP Operating Partnership, a Delaware limited
	 

	 	 	 	partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	AMB Property, L.P., a Delaware limited
	 

	 	 	 	partnership, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,
	 

	 	 	 	a Maryland corporation, its general partner

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

	 	 	 	 	 
	 	 	AMB-SGP DOCKS, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	AMB-SGP Operating Partnership, a Delaware limited
	 

	 	 	 	partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	AMB Property, L.P., a Delaware limited
	 

	 	 	 	partnership, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,
	 

	 	 	 	a Maryland corporation, its general partner

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	AMB-SGP GEORGIA, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	AMB-SGP Operating Partnership, a Delaware limited
	 

	 	 	 	partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	AMB Property, L.P., a Delaware limited
	 

	 	 	 	partnership, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,
	 

	 	 	 	a Maryland corporation, its general partner

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 
	 	 	AMB-SGP CIF-ILLINOIS, L.P.,
	 	 	a Delaware limited partnership
	 
	 	 	 	 
	 

	 	By:
	 	AMB SGP CIF-Illinois GP LLC, a Delaware limited liability
	 

	 	 	 	company, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property II, L.P., a Delaware limited 
	 	 	partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	Texas AMB I, LLC, a Delaware limited liability
	 

	 	 	 	company, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Holding Corporation,
	 

	 	 	 	a Maryland corporation, its sole member

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

	 	 	 	 	 
	 	 	AMB-SGP TX/IL SUB, LLC
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	AMB SGP TX/IL, L.P., a Delaware
limited partnership, its sole member

	 	 	 	 	 
	 

	 	By:
	 	AMB Property II, L.P., a Delaware limited
	 	 	partnership, its general partner

	 	 	 	 	 
	 

	 	By:
	 	Texas AMB I, LLC, a Delaware limited liability
	 

	 	 	 	company, its general partner

	 	 	 	 	 
	 

	 	By:
	 	AMB Property Holding Corporation,
	 

	 	 	 	a Maryland corporation, its sole member

	 	 	 	 	 
	 

	 	By:	 	/s/ Gayle P. Starr 
	 

	 	 	 	
 

	 

	 	 	 	Name: Gayle P. Starr
	 

	 	 	 	Title: Senior Vice President

 

 

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA,	 	 
	 	 	a New Jersey corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Frederick Van Overbeek	 	 
	 

	 	 	 	 

Name: Frederick Van Overbeek
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	PRUDENTIAL MORTGAGE CAPITAL COMPANY, LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard Jarocki 	 	 
	 

	 	 	 	 

Name: Richard Jarocki
	 	 
	 

	 	 	 	Title: Vice President	 	 

 

 

EXHIBIT A

Allocable Loan Amounts

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Allocable	 	 	 	 	 	 	 	 
	Prop.	 	 	 	 	 	 	 	Building	 	 	 	 	 	%	 	 	 	Loan	 	Fixed A-1	 	Floating A-2	 	Fixed B-1	 	Floating B-2
	#	 	Address	 	City	 	State	 	Type	 	NRA	 	Office	 	Submarket	 	Amount	 	Loan	 	Loan	 	Loan	 	Loan
	 	1	 	 	Docks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	200 Docks Corner 

Road

	 	South Brunswick
	 	NJ
	 	Bulk Warehouse
	 	 	1,205,623	 	 	 	3	%	 	South Brunswick
	 	$	47,047,000	 	 	$	24,680,000	 	 	$	6,170,000	 	 	$	12,958,000	 	 	$	3,239,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	2	 	 	JFK Airgate	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	151-02 132nd St

	 	Jamaica
	 	NY
	 	Warehouse
	 	 	65,363	 	 	 	24	%	 	JFK Airgate
	 	$	5,879,000	 	 	$	3,084,000	 	 	$	771,000	 	 	$	1,619,000	 	 	$	405,000	 
	 	 	 	 	150-10 132nd Ave

	 	Jamaica
	 	NY
	 	Warehouse
	 	 	66,135	 	 	 	42	%	 	JFK Airgate
	 	$	6,489,000	 	 	$	3,404,000	 	 	$	851,000	 	 	$	1,787,000	 	 	$	447,000	 
	 	 	 	 	152-02 Baisley 

Boulevard

	 	Jamaica
	 	NY
	 	Warehouse
	 	 	72,952	 	 	 	28	%	 	JFK Airgate
	 	$	7,124,000	 	 	$	3,737,000	 	 	$	934,000	 	 	$	1,962,000	 	 	$	491,000	 
	 	 	 	 	150-06 133rd Ave

	 	Jamaica
	 	NY
	 	Office
	 	 	24,724	 	 	 	 98	%	 	JFK Airgate
	 	$	4,846,000	 	 	$	2,541,000	 	 	$	636,000	 	 	$	1,335,000	 	 	$	334,000	 
	 	 	 	 	JFK Airgate Total	 	 	229,174	 	 	 	38	%	 	JFK Airgate	 	$	24,338,000	 	 	$	12,766,000	 	 	$	3,192,000	 	 	$	6,703,000	 	 	$	1,677,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	3	 	 	Emery, Southfield 235/245 & V	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	205 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Warehouse
	 	 	77,825	 	 	 	26	%	 	Atlanta Airport
	 	$	3,936,000	 	 	$	2,065,000	 	 	$	516,000	 	 	$	1,084,000	 	 	$	271,000	 
	 	 	 	 	235 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Warehouse
	 	 	132,360	 	 	 	18	%	 	Atlanta Airport
	 	$	5,327,000	 	 	$	2,794,000	 	 	$	699,000	 	 	$	1,467,000	 	 	$	367,000	 
	 	 	 	 	245 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Bulk Warehouse
	 	 	137,430	 	 	 	4	%	 	Atlanta Airport
	 	$	5,003,000	 	 	$	2,625,000	 	 	$	656,000	 	 	$	1,378,000	 	 	$	344,000	 
	 	 	 	 	220 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Bulk Warehouse
	 	 	125,000	 	 	 	6	%	 	Atlanta Airport
	 	$	4,233,000	 	 	$	2,221,000	 	 	$	555,000	 	 	$	1,166,000	 	 	$	291,000	 
	 	 	 	 	105 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Light Industrial
	 	 	93,440	 	 	 	15	%	 	Atlanta Airport
	 	$	4,476,000	 	 	$	2,348,000	 	 	$	587,000	 	 	$	1,233,000	 	 	$	308,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Southfield / KRDC 

Industrial	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	277 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Light Industrial
	 	 	49,217	 	 	 	57	%	 	Atlanta Airport
	 	$	2,950,000	 	 	$	1,548,000	 	 	$	387,000	 	 	$	812,000	 	 	$	203,000	 
	 	 	 	 	5165 Kennedy Road

	 	Forest Park
	 	GA
	 	Bulk Warehouse
	 	 	297,000	 	 	 	4	%	 	Atlanta Airport
	 	$	8,062,000	 	 	$	4,229,000	 	 	$	1,058,000	 	 	$	2,220,000	 	 	$	555,000	 
	 	 	 	 	5445 Old Dixie 

Highway

	 	Forest Park
	 	GA
	 	Bulk Warehouse
	 	 	134,500	 	 	 	8	%	 	Atlanta Airport
	 	$	4,621,000	 	 	$	2,424,000	 	 	$	606,000	 	 	$	1,273,000	 	 	$	318,000	 
	 	 	 	 	5690 Southfield 

Court

	 	Forest Park
	 	GA
	 	Warehouse
	 	 	122,400	 	 	 	7	%	 	Atlanta Airport
	 	$	5,063,000	 	 	$	2,656,000	 	 	$	664,000	 	 	$	1,394,000	 	 	$	349,000	 

A-1 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Allocable	 	 	 	 	 	 	 	 
	Prop.	 	 	 	 	 	 	 	Building	 	 	 	 	 	%	 	 	 	Loan	 	Fixed A-1	 	Floating A-2	 	Fixed B-1	 	Floating B-2
	#	 	Address	 	City	 	State	 	Type	 	NRA	 	Office	 	Submarket	 	Amount	 	Loan	 	Loan	 	Loan	 	Loan
	 	 	 	 	5673 Old Dixie 

Highway

	 	Forest Park
	 	GA
	 	Light Industrial
	 	 	34,288	 	 	 	30	%	 	Atlanta Airport
	 	$	1,847,000	 	 	$	969,000	 	 	$	242,000	 	 	$	509,000	 	 	$	127,000	 
	 	 	 	 	5651 Old Dixie 

Highway

	 	Forest Park
	 	GA
	 	Light Industrial
	 	 	34,288	 	 	 	17	%	 	Atlanta Airport
	 	$	1,574,000	 	 	$	826,000	 	 	$	207,000	 	 	$	433,000	 	 	$	108,000	 
	 	 	 	 	114 Southfield 

Parkway

	 	Forest Park
	 	GA
	 	Light Industrial
	 	 	60,264	 	 	 	31	%	 	Atlanta Airport
	 	$	2,888,000	 	 	$	1,515,000	 	 	$	379,000	 	 	$	795,000	 	 	$	199,000	 
	 	 	 	 	150 Penney Road

	 	Forest Park
	 	GA
	 	Warehouse
	 	 	48,718	 	 	 	17	%	 	Atlanta Airport
	 	$	2,093,000	 	 	$	1,096,000	 	 	$	274,000	 	 	$	580,000	 	 	$	143,000	 
	 	 	 	 	Emery, Southfield 235/245 & V / Southfield / KRDC Industrial Total	 	 	1,346,730	 	 	 	13	%	 	 Atlanta Airport	 	 	$52,073,000 	 	 	 	$27,316,000 	 	 	 	$6,830,000	 	 	 	 $14,344,000 	 	 	 	$3,583,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	4	 	 	Northbrook	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	3350-3600 Woodhead Dr.

	 	Northbrook
	 	IL
	 	Warehouse
	 	 	68,244	 	 	 	14	%	 	Chicago North Cook
	 	$	1,940,000	 	 	$	1,018,000	 	 	$	254,000	 	 	$	534,000	 	 	$	134,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5	 	 	Elk Grove Village	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	1500 Greenleaf Ave

	 	Elk Grove Village
	 	IL
	 	Warehouse
	 	 	29,633	 	 	 	14	%	 	Chicago O’Hare
	 	$	808,000	 	 	$	424,000	 	 	$	106,000	 	 	$	222,000	 	 	$	56,000	 
	 	 	 	 	1281 Arthur Ave

	 	Elk Grove Village
	 	IL
	 	Warehouse
	 	 	35,908	 	 	 	10	%	 	Chicago O’Hare
	 	$	1,084,000	 	 	$	569,000	 	 	$	142,000	 	 	$	298,000	 	 	$	75,000	 
	 	 	 	 	1455 Estes Ave

	 	Elk Grove Village
	 	IL
	 	Warehouse
	 	 	62,500	 	 	 	6	%	 	Chicago O’Hare
	 	$	2,481,000	 	 	$	1,302,000	 	 	$	325,000	 	 	$	683,000	 	 	$	171,000	 
	 	 	 	 	1450 Greenleaf Ave

	 	Elk Grove Village
	 	IL
	 	Warehouse
	 	 	35,493	 	 	 	10	%	 	Chicago O’Hare
	 	$	1,097,000	 	 	$	575,000	 	 	$	144,000	 	 	$	302,000	 	 	$	76,000	 
	 	 	 	 	1550 Greenleaf

	 	Elk Grove Village
	 	IL
	 	Warehouse
	 	 	50,695	 	 	 	9	%	 	Chicago O’Hare
	 	$	1,627,000	 	 	$	854,000	 	 	$	213,000	 	 	$	448,000	 	 	$	112,000	 
	 	 	 	 	Elk Grove Total	 	 	 	 	 	 	214,229	 	 	 	9	%	 	Chicago O’Hare	 	$	7,097,000	 	 	$	3,724,000	 	 	$	930,000	 	 	$	1,953,000	 	 	$	490,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	6	 	 	Itasca
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	1131-1139 Bryn Mawr

	 	Itasca
	 	IL
	 	Warehouse
	 	 	125,955	 	 	 	5	%	 	Chicago O’Hare
	 	$	5,883,000	 	 	$	3,086,000	 	 	$	772,000	 	 	$	1,620,000	 	 	$	405,000	 
	 	 	 	 	1141-1149 W Bryn 

Mawr

	 	Itasca
	 	IL
	 	Warehouse
	 	 	93,211	 	 	 	5	%	 	Chicago O’Hare
	 	$	3,474,000	 	 	$	1,822,000	 	 	$	456,000	 	 	$	957,000	 	 	$	239,000	 
	 	 	 	 	1151-1159 Bryn Mawr

	 	Itasca
	 	IL
	 	Warehouse
	 	 	93,640	 	 	 	16	%	 	Chicago O’Hare
	 	$	4,163,000	 	 	$	2,184,000	 	 	$	546,000	 	 	$	1,146,000	 	 	$	287,000	 
	 	 	 	 	900-950 Hollywood

	 	Itasca
	 	IL
	 	Warehouse
	 	 	83,520	 	 	 	6	%	 	Chicago O’Hare
	 	$	3,163,000	 	 	$	1,659,000	 	 	$	415,000	 	 	$	871,000	 	 	$	218,000	 
	 	 	 	 	Itasca Total	 	 	396,326	 	 	 	8	%	 	Chicago O’Hare	 	$	16,683,000	 	 	$	8,751,000	 	 	$	2,189,000	 	 	$	4,594,000	 	 	$	1,149,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	7	 	 	Bleden Ave	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	710 Belden Ave

	 	Addison
	 	IL
	 	Bulk Warehouse
	 	 	96,960	 	 	 	15	%	 	Chicago West Suburbs
	 	$	4,756,000	 	 	$	2,495,000	 	 	$	624,000	 	 	$	1,310,000	 	 	$	327,000	 
	 	 	 	 	775 Belden Ave

	 	Addison
	 	IL
	 	Bulk Warehouse
	 	 	195,131	 	 	 	11	%	 	Chicago West Suburbs
	 	$	7,838,000	 	 	$	4,112,000	 	 	$	1,028,000	 	 	$	2,158,000	 	 	$	540,000	 

A-2 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Allocable	 	 	 	 	 	 	 	 
	Prop.	 	 	 	 	 	 	 	Building	 	 	 	 	 	%	 	 	 	Loan	 	Fixed A-1	 	Floating A-2	 	Fixed B-1	 	Floating B-2
	#	 	Address	 	City	 	State	 	Type	 	NRA	 	Office	 	Submarket	 	Amount	 	Loan	 	Loan	 	Loan	 	Loan
	 	 	 	 	780 Belden Ave

	 	Addison
	 	IL
	 	Warehouse
	 	 	54,142	 	 	 	32	%	 	Chicago West Suburbs
	 	$	3,098,000	 	 	$	1,625,000	 	 	$	406,000	 	 	$	854,000	 	 	$	213,000	 
	 	 	 	 	Bleden Ave Total	 	 	346,233	 	 	 	15	%	 	Chicago West Suburbs	 	$	15,692,000	 	 	$	8,232,000	 	 	$	2,058,000	 	 	$	4,322,000	 	 	$	1,080,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	8	 	 	Wheeling	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	747 Glenn Ave

	 	Wheeling
	 	IL
	 	Warehouse
	 	 	82,000	 	 	 	15	%	 	Chicago North Cook
	 	$	2,467,000	 	 	$	1,294,000	 	 	$	324,000	 	 	$	679,000	 	 	$	170,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	9	 	 	Wood Dale	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	908-938 Central Ave

	 	Wood Dale
	 	IL
	 	Light Industrial
	 	 	43,958	 	 	 	11	%	 	Chicago O’Hare
	 	$	1,273,000	 	 	$	668,000	 	 	$	167,000	 	 	$	350,000	 	 	$	88,000	 
	 	 	 	 	852-864 Lively

	 	Wood Dale
	 	IL
	 	Light Industrial
	 	 	45,760	 	 	 	12	%	 	Chicago O’Hare
	 	$	1,101,000	 	 	$	578,000	 	 	$	144,000	 	 	$	303,000	 	 	$	76,000	 
	 	 	 	 	Wood Dale Total	 	 	89,718	 	 	 	12	%	 	Chicago O’Hare	 	$	2,374,000	 	 	$	1,246,000	 	 	$	311,000	 	 	$	653,000	 	 	$	164,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	10	 	 	Bonnie Lane	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	775-825 Bonnie Lane

	 	Elk Grove
	 	IL
	 	Light Industrial
	 	 	54,450	 	 	 	9	%	 	Chicago O’Hare
	 	$	1,959,000	 	 	$	1,028,000	 	 	$	257,000	 	 	$	539,000	 	 	$	135,000	 
	 	 	 	 	835-865 Bonnie Lane

	 	Elk Grove
	 	IL
	 	Light Industrial
	 	 	65,140	 	 	 	9	%	 	Chicago O’Hare
	 	$	1,903,000	 	 	$	998,000	 	 	$	250,000	 	 	$	524,000	 	 	$	131,000	 
	 	 	 	 	Bonnie Lane Total	 	 	119,590	 	 	 	9	%	 	Chicago O’Hare	 	$	3,862,000	 	 	$	2,026,000	 	 	$	507,000	 	 	$	1,063,000	 	 	$	266,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	11	 	 	Richardson Tech 

Center	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	1350 N. Glenville
Ave.

	 	Dallas
	 	TX
	 	Flex Industrial
	 	 	25,600	 	 	 	100	%	 	DFW Richardson
	 	$	2,032,000	 	 	$	1,066,000	 	 	$	266,000	 	 	$	560,000	 	 	$	140,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	12	 	 	Carson
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	20640-20810 Fordyce
Ave

	 	Carson
	 	CA
	 	Bulk Warehouse
	 	 	300,636	 	 	 	2	%	 	LA South Bay
	 	$	18,251,000	 	 	$	9,574,000	 	 	$	2,394,000	 	 	$	5,026,000	 	 	$	1,257,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	13	 	 	City of Industry	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	18955-18979 East 

Railroad Ave

	 	City of Industry
	 	CA
	 	Bulk Warehouse
	 	 	89,924	 	 	 	5	%	 	LA San Gabriel
	 	$	4,376,000	 	 	$	2,296,000	 	 	$	574,000	 	 	$	1,205,000	 	 	$	301,000	 
	 	 	 	 	18901 East Railroad 

Ave

	 	City of Industry
	 	CA
	 	Bulk Warehouse
	 	 	100,000	 	 	 	4	%	 	LA San Gabriel
	 	$	4,866,000	 	 	$	2,553,000	 	 	$	638,000	 	 	$	1,340,000	 	 	$	335,000	 
	 	 	 	 	18825 East Railroad 

Ave

	 	City of Industry
	 	CA
	 	Bulk Warehouse
	 	 	75,000	 	 	 	9	%	 	LA San Gabriel
	 	$	3,334,000	 	 	$	1,749,000	 	 	$	437,000	 	 	$	918,000	 	 	$	230,000	 
	 	 	 	 	19430-19449 Arenth 

Ave

	 	City of Industry
	 	CA
	 	Bulk Warehouse
	 	 	194,471	 	 	 	5	%	 	LA San Gabriel
	 	$	9,258,000	 	 	$	4,857,000	 	 	$	1,214,000	 	 	$	2,550,000	 	 	$	637,000	 

A-3 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Allocable	 	 	 	 	 	 	 	 
	Prop.	 	 	 	 	 	 	 	Building	 	 	 	 	 	%	 	 	 	Loan	 	Fixed A-1	 	Floating A-2	 	Fixed B-1	 	Floating B-2
	#	 	Address	 	City	 	State	 	Type	 	NRA	 	Office	 	Submarket	 	Amount	 	Loan	 	Loan	 	Loan	 	Loan
	 	 	 	 	City of Industry Total	 	 	459,395	 	 	 	5	%	 	LA San Gabriel	 	$	21,834,000	 	 	$	11,455,000	 	 	$	2,863,000	 	 	$	6,013,000	 	 	$	1,503,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	14	 	 	Norwalk
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	15408 Black Burn Ave

	 	Norwalk
	 	CA
	 	Warehouse
	 	 	60,000	 	 	 	10	%	 	LA Mid Counties
	 	$	3,023,000	 	 	$	1,586,000	 	 	$	396,000	 	 	$	833,000	 	 	$	208,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	15	 	 	Alvarado Business 

Center	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	3012 Alvarado Street

	 	San Leandro
	 	CA
	 	Warehouse
	 	 	32,640	 	 	 	0	%	 	San Leandro
	 	$	3,473,000	 	 	$	1,822,000	 	 	$	455,000	 	 	$	957,000	 	 	$	239,000	 
	 	 	 	 	3004 Alvarado Street

	 	San Leandro
	 	CA
	 	Warehouse
	 	 	109,094	 	 	 	8	%	 	San Leandro
	 	$	5,372,000	 	 	$	2,818,000	 	 	$	705,000	 	 	$	1,479,000	 	 	$	370,000	 
	 	 	 	 	2960-2976 Alvarado 

Street

	 	San Leandro
	 	CA
	 	Warehouse
	 	 	200,800	 	 	 	19	%	 	San Leandro
	 	$	10,528,000	 	 	$	5,523,000	 	 	$	1,381,000	 	 	$	2,901,000	 	 	$	723,000	 
	 	 	 	 	2992-2998 Alvarado 

Street

	 	San Leandro
	 	CA
	 	Warehouse
	 	 	310,432	 	 	 	10	%	 	San Leandro
	 	$	18,355,000	 	 	$	9,629,000	 	 	$	2,407,000	 	 	$	5,055,000	 	 	$	1,264,000	 
	 	 	 	 	3018 Alvarado Street

	 	San Leandro
	 	CA
	 	Warehouse
	 	 	43,059	 	 	 	20	%	 	San Leandro
	 	$	2,622,000	 	 	$	1,375,000	 	 	$	344,000	 	 	$	722,000	 	 	$	181,000	 
	 	 	 	 	Alvarado Business Center Total	 	 	696,025	 	 	 	12	%	 	San Leandro	 	$	40,350,000	 	 	$	21,167,000	 	 	$	5,292,000	 	 	$	11,114,000	 	 	$	2,777,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	16	 	 	Fairway Drive	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	1932 Fairway Dr

	 	San Leandro
	 	CA
	 	Bulk Warehouse
	 	 	18,000	 	 	 	0	%	 	San Leandro
	 	$	2,274,000	 	 	$	1,193,000	 	 	$	298,000	 	 	$	626,000	 	 	$	157,000	 
	 	 	 	 	1934 Fairway Dr

	 	San Leandro
	 	CA
	 	Bulk Warehouse
	 	 	80,080	 	 	 	7	%	 	San Leandro
	 	$	4,397,000	 	 	$	2,307,000	 	 	$	577,000	 	 	$	1,211,000	 	 	$	302,000	 
	 	 	 	 	1933 Fairway Dr

	 	San Leandro
	 	CA
	 	Bulk Warehouse
	 	 	157,324	 	 	 	5	%	 	San Leandro
	 	$	7,640,000	 	 	$	4,008,000	 	 	$	1,002,000	 	 	$	2,104,000	 	 	$	526,000	 
	 	 	 	 	1940 Fairway Dr

	 	San Leandro
	 	CA
	 	Bulk Warehouse
	 	 	115,660	 	 	 	6	%	 	San Leandro
	 	$	6,477,000	 	 	$	3,398,000	 	 	$	849,000	 	 	$	1,784,000	 	 	$	446,000	 
	 	 	 	 	Fairway Drive Total	 	 	371,064	 	 	 	6	%	 	San Leandro	 	$	20,788,000	 	 	$	10,906,000	 	 	$	2,726,000	 	 	$	5,725,000	 	 	$	1,431,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	17	 	 	Los Nietos	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	9142-9160 Norwalk 

Blvd

	 	Santa Fe Springs
	 	CA
	 	Warehouse
	 	 	99,501	 	 	 	12	%	 	LA Mid Counties
	 	$	4,138,000	 	 	$	2,171,000	 	 	$	543,000	 	 	$	1,140,000	 	 	$	284,000	 
	 	 	 	 	9130-9140 Norwalk 

Blvd

	 	Santa Fe Springs
	 	CA
	 	Warehouse
	 	 	71,156	 	 	 	10	%	 	LA Mid Counties
	 	$	4,253,000	 	 	$	2,231,000	 	 	$	558,000	 	 	$	1,171,000	 	 	$	293,000	 
	 	 	 	 	11925-11933 Los 

Nietos

	 	Santa Fe Springs
	 	CA
	 	Flex Industrial
	 	 	22,764	 	 	 	55	%	 	LA Mid Counties
	 	$	1,795,000	 	 	$	942,000	 	 	$	235,000	 	 	$	494,000	 	 	$	124,000	 
	 	 	 	 	9120-9128 Norwalk 

Blvd

	 	Santa Fe Springs
	 	CA
	 	Flex Industrial
	 	 	19,536	 	 	 	44	%	 	LA Mid Counties
	 	$	1,686,000	 	 	$	884,000	 	 	$	221,000	 	 	$	464,000	 	 	$	117,000	 
	 	 	 	 	Los Nietos Total	 	 	212,957	 	 	 	19	%	 	LA Mid Counties	 	$	11,872,000	 	 	$	6,228,000	 	 	$	1,557,000	 	 	$	3,269,000	 	 	$	818,000	 

A-4 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Allocable	 	 	 	 	 	 	 	 
	Prop.	 	 	 	 	 	 	 	Building	 	 	 	 	 	%	 	 	 	Loan	 	Fixed A-1	 	Floating A-2	 	Fixed B-1	 	Floating B-2
	#	 	Address	 	City	 	State	 	Type	 	NRA	 	Office	 	Submarket	 	Amount	 	Loan	 	Loan	 	Loan	 	Loan
	 	18	 	 	Milmont Page	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	48366 Milmont Ave

	 	Fremont
	 	CA
	 	Warehouse
	 	 	132,652	 	 	 	11	%	 	Fremont
	 	$	6,301,000	 	 	$	3,305,000	 	 	$	826,000	 	 	$	1,735,000	 	 	$	435,000	 
	 	 	 	 	48340 Milmont Ave

	 	Fremont
	 	CA
	 	Light Industrial
	 	 	33,600	 	 	 	42	%	 	Fremont
	 	$	1,676,000	 	 	$	879,000	 	 	$	220,000	 	 	$	462,000	 	 	$	115,000	 
	 	 	 	 	48438 Milmont Ave

	 	Fremont
	 	CA
	 	Light Industrial
	 	 	33,610	 	 	 	42	%	 	Fremont
	 	$	1,982,000	 	 	$	1,040,000	 	 	$	260,000	 	 	$	546,000	 	 	$	136,000	 
	 	 	 	 	Milmont Page Total	 	 	199,862	 	 	 	21	%	 	Fremont	 	$	9,959,000	 	 	$	5,224,000	 	 	$	1,306,000	 	 	$	2,743,000	 	 	$	686,000	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	19	 	 	Pardee Drive	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	8455 Pardee Drive

	 	Oakland
	 	CA
	 	Warehouse
	 	 	33,411	 	 	 	16	%	 	Oakland
	 	$	3,318,000	 	 	$	1,741,000	 	 	$	435,000	 	 	$	914,000	 	 	$	228,000	 
	 	 	 	 	Portfolio Total	 	 	 	 	 	 	6,456,817	 	 	 	10	%	 	Various	 	$	305,000,000	 	 	$	160,000,000	 	 	$	40,000,000	 	 	$	84,000,000	 	 	$	21,000,000	 

A-5 

 

EXHIBIT B

Security Pool

	 	 	 	 	 	 	 	 	 	 	 
	#	 	PROPERTY	 	BORROWER	 	ADDRESS	 	CITY	 	STATE
	1.

	 	Docks Corner
	 	AMB-SGP Docks, LLC
	 	200 Docks Corner Road
	 	South Brunswick
	 	NJ
	 
	 	 	 	 	 	 	 	 	 	 
	2.

	 	JFK Airgate Center
	 	AMB-SGP Georgia, LLC
	 	151-02 132nd St

150-10 132nd Ave

152-02 Baisley Boulevard

150-06 133rd Ave
	 	Jamaica
	 	NY
	 
	 	 	 	 	 	 	 	 	 	 
	3.

	 	Emery, Southfield 235/245 & V /
	 	AMB-SGP Georgia, LLC /
	 	205 Southfield Parkway

235 Southfield Parkway

245 Southfield Parkway

220 Southfield Parkway

105 Southfield Parkway	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Southfield/KRDC Industrial
	 	AMB-SGP CIF-I, LLC
	 	277 Southfield Parkway

5165 Kennedy Road

5445 Old Dixie Highway

5690 Southfield Court

5673 Old Dixie Highway

5651 Old Dixie Highway

114 Southfield Parkway

150 Penney Road
	 	Forest Park
	 	GA
	 
	 	 	 	 	 	 	 	 	 	 
	5.

	 	Northbrook
	 	AMB-SGP CIF-Illinois, LP
	 	3350-3600 Woodhead Dr.
	 	Northbrook
	 	IL
	 
	 	 	 	 	 	 	 	 	 	 
	6.

	 	Elk Grove
	 	AMB-SGP CIF-Illinois, LP
	 	1500 Greenleaf Ave

1281 Arthur Ave

1455 Estes Ave

1450 Greenleaf Ave

1550 Greenleaf
	 	Elk Grove Village
	 	IL

B-1 

 

	 	 	 	 	 	 	 	 	 	 	 
	#	 	PROPERTY	 	BORROWER	 	ADDRESS	 	CITY	 	STATE
	7.

	 	Itasca
	 	AMB-SGP CIF-Illinois, LP
	 	1131-1139 Bryn Mawr

1141-1149 W Bryn Mawr

1151-1159 Bryn Mawr

900-950 Hollywood
	 	Itasca
	 	IL
	 
	 	 	 	 	 	 	 	 	 	 
	8.

	 	Belden Business Center
	 	AMB-SGP CIF-Illinois, LP
	 	710 Belden Ave

775 Belden Ave

780 Belden Ave
	 	Addison
	 	IL
	 
	 	 	 	 	 	 	 	 	 	 
	9.

	 	Wheeling
	 	AMB-SGP TX/IL Sub, LLC
	 	747 Glenn Ave
	 	Wheeling
	 	IL
	 
	 	 	 	 	 	 	 	 	 	 
	10.

	 	Wood Dale
	 	AMB-SGP TX/IL Sub, LLC
	 	908-938 Central Ave

852-864 Lively
	 	Wood Dale
	 	IL
	 
	 	 	 	 	 	 	 	 	 	 
	11.

	 	Bonnie Lane
	 	AMB-SGP TX/IL Sub, LLC
	 	775-825 Bonnie Lane

835-865 Bonnie Lane
	 	Elk Grove Village
	 	IL
	 
	 	 	 	 	 	 	 	 	 	 
	12.

	 	Richardson Tech #2
	 	AMB-SGP TX/IL Sub, LLC
	 	1350 N. Glenville Ave.
	 	Richardson
	 	TX
	 
	 	 	 	 	 	 	 	 	 	 
	13.

	 	Los Nietos
	 	AMB-SGP California, LLC
	 	9142-9160 Norwalk Blvd

9130-9140 Norwalk Blvd

11925-11933 Los Nietos

9120-9128 Norwalk Blvd
	 	Santa Fe Springs
	 	CA
	 
	 	 	 	 	 	 	 	 	 	 
	14.

	 	Carson
	 	AMB-SGP CIF-California, LLC
	 	20640-20810 Fordyce Ave
	 	Carson
	 	CA
	 
	 	 	 	 	 	 	 	 	 	 
	15.

	 	City of Industry
	 	AMB-SGP CIF-California, LLC
	 	18955-18979 East
Railroad Ave

18901 East Railroad Ave

18825 East Railroad Ave

19430-19449 Arenth Ave
	 	City of Industry
	 	CA
	 
	 	 	 	 	 	 	 	 	 	 
	16.

	 	Norwalk
	 	AMB-SGP CIF-California, LLC
	 	15408 Black Burn Ave
	 	Norwalk
	 	CA

B-2 

 

	 	 	 	 	 	 	 	 	 	 	 
	#	 	PROPERTY	 	BORROWER	 	ADDRESS	 	CITY	 	STATE
	17.

	 	Alvarado Business Center
	 	AMB-SGP CIF-I, LLC
	 	3012 Alvarado Street

3004 Alvarado Street

2960-2976 Alvarado
Street

2992-2998 Alvarado
Street

3018 Alvarado Street
	 	San Leandro
	 	CA
	 
	 	 	 	 	 	 	 	 	 	 
	18.

	 	Fairway Drive Industrial
	 	AMB-SGP CIF-California, LLC
	 	1932 Fairway Dr

1934 Fairway Dr

1933 Fairway Dr

1940 Fairway Dr
	 	San Leandro
	 	CA
	 
	 	 	 	 	 	 	 	 	 	 
	19.

	 	Milmont Page Business Center
	 	AMB-SGP CIF-California, LLC
	 	48366 Milmont Ave

48340 Milmont Ave

48438 Milmont Ave
	 	Fremont
	 	CA
	 
	 	 	 	 	 	 	 	 	 	 
	20.

	 	Pardee Drive
	 	AMB-SGP California, LLC
	 	8455 Pardee Drive
	 	Oakland
	 	CA

B-3 

 

EXHIBIT C

Definition of Single-Purpose Entity

          “Single Purpose Entity” means a corporation, limited partnership, or limited liability
company which, at all times since its formation and thereafter

          (i) was and will be organized solely for the purpose of (x) owning the Property or (y) acting
as the managing member of the limited liability company which owns the Property or (z) acting as
the general partner of a limited partnership which owns the Property,

          (ii) has not and will not engage in any business unrelated to (x) the ownership, management,
leasing, financing and operation of the Property or (y) acting as a member of a limited liability
company which owns the Property or (z) acting as a general partner of a limited partnership which
owns the Property, and in any case, will conduct its business as presently conducted and operated,

          (iii) has not and will not own any asset or property other than (x) the Property and
incidental personal property necessary for the ownership, management, leasing, financing and
operation of the Property or (y) its member interest in the limited liability company which owns
the Property or (z) its general partnership interest in the limited partnership which owns the
Property, as applicable,

          (iv) to the fullest extent permitted by law, has not and will not engage in, seek or consent
to any dissolution, winding up, liquidation, consolidation or merger, in whole or in part, and,
except as otherwise expressly permitted by this Agreement, has not and will not engage in, seek or
consent to any asset sale, transfer of partnership or membership or shareholder interests, or
amendment of its limited partnership agreement, articles of incorporation, articles of
organization, certificate of formation or operating agreement (as applicable),

          (v) if such entity is a limited partnership, has and will have as its only general partners,
general partners which are and will be Single-Purpose Entities which are corporations or Single
Member LLCs,

          (vi) if such entity is a corporation or a Single Member LLC (as defined below), at all
relevant times, has and will have at least one (1) Independent Director (as defined below),

          (vii) the board of directors of such entity (or if such entity is a Single Member LLC, the
entity, each member, each director, each manager, the board of managers, if any, and all other
Persons on behalf of such entity), has not taken and will not take any action requiring the
unanimous affirmative vote of one hundred percent (100%) of the members and all directors and
managers, as applicable, unless all of the directors or managers, as applicable, including, without
limitation, the Independent Director, shall have participated in such vote,

          (viii) has not and will not fail to correct any known misunderstanding regarding the separate
identity of such entity,

          (ix) if such entity is a limited liability company (other than a Single Member LLC), has and
will have at least one member that is and will be a Single-Purpose Entity which is and will be a
corporation, and such corporation is and will be the managing member of such limited liability
company,

C-1 

 

          (x) without the unanimous consent of all of the partners, directors or managers (including,
without limitation, the Independent Director) or members, as applicable, has not and will not with
respect to itself or to any other entity in which it has a direct or indirect legal or beneficial
ownership interest (w) file a bankruptcy, insolvency or reorganization petition or otherwise
institute insolvency proceedings or otherwise seek any relief under any laws relating to the relief
from debts or the protection of debtors generally; (x) seek or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for such
entity or all or any portion of such entity’s properties; (y) make any assignment for the benefit
of such entity’s creditors; or (z) take any action that might cause such entity to become
insolvent,

          (xi) has maintained and will maintain its books, records, accounting records, bank accounts
and other entity documents in its own name and separate from any other Person,

          (xii) has maintained and will maintain its books, records, resolutions and agreements as
official records,

          (xiii) has not commingled and will not commingle its funds or other assets with those of any
other Person,

          (xiv) has held and will hold its assets in its own name, and has maintained and will maintain
its assets in such a manner that it will not be costly or difficult to segregate, ascertain or
identify its individual assets from those of any other Person,

          (xv) has conducted and will conduct its business in its name,

          (xvi) has filed and will file its own tax returns if any, as may be required under applicable
law, to the extent (1) not part of a consolidated group filing a consolidated return or returns or
(2) not treated as a division for tax purposes of another taxpayer, and pay any taxes so required
to be paid under applicable law;

          (xvii) is and intends to remain solvent, and has paid and will pay its own debts and
liabilities out of its own funds and assets (to the extent of such funds and assets) as the same
shall become due (provided, however, the foregoing shall not require any partner or member to make
any additional capital contributions to such entity), and will give prompt written notice to Lender
of the insolvency or bankruptcy filing of Borrower or any general partner, managing member or
controlling shareholder of Borrower, or the death, insolvency or bankruptcy filing of any
Guarantor;

          (xviii) has done or caused to be done, and will do or cause to be done, all things necessary
to observe all partnership, corporate or limited liability company formalities (as applicable) and
preserve its existence and good standing, and, has not, and without the prior written consent of
Lender, will not, amend, modify or otherwise change any of the single purpose, separateness or
bankruptcy remote provisions or requirements of the partnership certificate, partnership agreement,
articles of incorporation and bylaws, articles of organization or operating agreement, trust or
other organizational documents (except as required by law),

          (xix) has maintained and will maintain an arms-length relationship with its affiliates,

          (xx) if (A) such entity owns the Property, has and will have no indebtedness other than the
Indebtedness and unsecured trade payables in the ordinary course of business relating to the
ownership and operation of the Property which (1) together with the unsecured trade payables in the
ordinary course of business relating to the ownership and operation of the Property of each other
entity

C-2 

 

which owns a Property, does not exceed, at any time, a maximum amount of two percent (2%) of
the aggregate Loan amount and (2) are paid within 60 days of the date incurred, or (B) if such
entity acts as the general partner of a limited partnership which owns the Property, has and will
have no indebtedness other than unsecured trade payables in the ordinary course of business
relating to acting as general partner of the limited partnership which owns the Property which (1)
do not exceed, at any time, $10,000 and (2) are paid within 60 days of the date incurred, or (z) if
such entity acts as a managing member of a limited liability company which owns the Property, has
and will have no indebtedness other than unsecured trade payables in the ordinary course of
business relating to acting as a member of the limited liability company which owns the Property
which (1) do not exceed, at any time, $10,000 and (2) are paid within 60 days of the date incurred
(the foregoing, as applicable to the referenced Person, “Permitted Trade Payables”);
provided that the term “trade payables” for avoidance of doubt, shall not be read to include real
estate taxes or the costs of tenant or capital improvements for which no credit has been extended,

          (xxi) except as contemplated by the Loan Documents, has not and will not assume, guarantee,
become obligated for or hold out its credit as being available to satisfy the debts or obligations
of any other Person, or the decisions or actions respecting the daily business or affairs of any
other Person,

          (xxii) has not acquired and will not acquire obligations or securities of its partners,
members or shareholders or any other Person,

          (xxiii) has allocated and will allocate fairly and reasonably shared expenses, including,
without limitation, shared office space, and has maintained and utilized and will maintain and
utilize separate stationery, invoices and checks bearing its own name,

          (xxiv) except as permitted under the Loan Documents, has not and will not pledge its assets
for the benefit of any other Person,

          (xxv) has held and identified itself and will hold itself out to the public as a legal entity
separate and distinct from any other Person and under its own name,

          (xxvi) has not made and will not make loans or advances to any Person,

          (xxvii) has not and will not identify itself or any of its affiliates as a division or part of
the other, except for services rendered under a business management services agreement with an
affiliate that complies with the terms set forth in clause (xxviii) below, so long as the manager,
or equivalent thereof, under such business management services agreement holds itself out as an
agent of such Single Purpose Entity,

          (xxviii) except as permitted under the Loan Documents, has not entered and will not enter into
any contract or agreement with its partners, members, shareholders or its affiliates except in the
ordinary course of its business and on terms which are no less favorable to it than would be
obtained in a comparable arms-length transaction with an unrelated third party,

          (xxix) has paid and will pay the salaries of its own employees, if any, from its own funds (to
the extent of such funds); provided, however, the foregoing shall not require any partner or member
to make any additional capital contributions to such entity,

          (xxx) has maintained and intends to maintain adequate capital for the normal obligations
reasonably foreseeable in a business of its size and character and in light of its contemplated

C-3 

 

business operations; provided, however, the foregoing shall not require any partner or member
to make any additional capital contributions to such entity,

          (xxxi) if such entity is a limited liability company (other than a Single Member LLC), such
entity shall dissolve only upon the bankruptcy of the managing member, and such entity’s articles
of organization, certificate of formation and/or operating agreement, as applicable, shall contain
such provision,

          (xxxii) if such entity is a limited liability company (other than a Single Member LLC) or
limited partnership, and such entity has one or more managing members or general partners, as
applicable, then such entity shall continue (and not dissolve) for so long as a solvent managing
member or general partner, as applicable, exists and such entity’s organizational documents shall
contain such provision,

          (xxxiii) if the aggregate Loan amount is $15,000,000 or more, if such entity is a Single
Member LLC, its organizational documents shall provide that, as long as any portion of the
Indebtedness remains outstanding, upon the occurrence of any event that causes the last remaining
member of such Single Member LLC to cease to be a member of such Single Member LLC (other than (y)
upon an assignment by such member of all of its limited liability company interest in such Single
Member LLC and the admission of the transferee, if permitted pursuant to the organizational
documents of such Single Member LLC and the Loan Documents, or (z) the resignation of such member
and the admission of an additional member of such Single Member LLC, if permitted pursuant to the
organizational documents of such Single Member LLC and the Loan Documents), the individual(s)
acting as the Independent Director(s) of such Single Member LLC shall, without any action of any
Person and simultaneously with the last remaining member of the Single Member LLC ceasing to be a
member of the Single Member LLC, automatically be admitted as members of the Single Member LLC (the
“Special Member”) and shall preserve and continue the existence of the Single Member LLC
without dissolution thereof,

          (xxxiv) if the aggregate Loan amount is $15,000,000 or more, if such entity is a Single Member
LLC, its organizational documents shall provide that for so long as any portion of the Indebtedness
is outstanding, no Special Member may resign or transfer its rights as Special Member unless (A) a
successor Special Member has been admitted to such Single Member LLC as a Special Member, and (B)
such successor Special Member has also accepted its appointment as the Independent Director,

          (xxxv) intentionally omitted,

          (xxxvi) has not and will not have any obligation to indemnify or indemnify the SPE Equity
Owner or any Special Member, as the case may be, unless such an obligation was and is fully
subordinated to the Indebtedness and, to the fullest extent permitted by law, will not constitute a
claim against such entity in the event that cash flow in excess of the amount required to pay the
Indebtedness is insufficient to pay such indemnity obligation,

          (xxxvii) intentionally omitted,

          (xxxviii) to the fullest extent permitted by law, including Section 18-1101(c) of the Delaware
Limited Liability Company Act, will consider the interests of its creditors in connection with all
of limited liability company or limited partnership actions, as applicable; and

C-4 

 

          (xxxix) has caused and will cause its agents and other representatives to act at all times
with respect to such entity consistently and in furtherance of the foregoing and in the best
interests of such entity.

          “Independent Director” means a duly appointed member of the board of directors (or
with respect to a Single Member LLC, the board of managers) of the relevant entity who shall not
have been, at the time of such appointment or at any time while serving as a director or manager of
the relevant entity and may not have been at any time in the preceding five (5) years, (a) a direct
or indirect legal or beneficial owner in such entity or any of its affiliates, (b) a creditor,
supplier, employee, officer, director (other than in its capacity as Independent Director), family
member, manager, or contractor of such entity or any of its affiliates, or (c) a Person who
controls (directly, indirectly, or otherwise) such entity or any of its affiliates or any creditor,
supplier, employee, officer, director, family member, manager, or contractor of such Person or any
of its affiliates.

          “Single Member LLC” means a limited liability company that (a) is either (i) a single
member limited liability company or (ii) a multiple member limited liability company that does not
have a Single-Purpose Entity that owns at least one percent (1%) of the equity interests in such
limited liability company as its managing member, and (b) is organized under the laws of the State
of Delaware.

C-5exv10w2

 

Exhibit 10.2

AMENDED, RESTATED AND CONSOLIDATED PROMISSORY NOTE

(FIXED A-1)

			
	 	 	 
	$160,000,000.00
	 	February 14, 2007
	 	 	 

Loan No. 406-107-028

FOR VALUE RECEIVED, AMB-SGP CALIFORNIA, LLC, a Delaware limited liability company, AMB-SGP
CIF-CALIFORNIA, LLC, a Delaware limited liability company, AMB-SGP CIF-I, LLC, a Delaware limited
liability company, AMB-SGP DOCKS, LLC, a Delaware limited liability company, AMB-SGP GEORGIA, LLC,
a Delaware limited liability company, AMB-SGP CIF-ILLINOIS, L.P., a Delaware limited partnership,
AMB-SGP TX/IL SUB, LLC, a Delaware limited liability company (each a “Borrower”, collectively,
"Borrowers”), promise to pay to the order of PRUDENTIAL MORTGAGE CAPITAL COMPANY LLC, a Delaware
limited liability company whose address is 100 Mulberry Street, 8-GC4, Newark, NJ 07102 (together
with their respective successors and assigns, collectively, “Lender”), the principal sum of ONE
HUNDRED SIXTY MILLION AND NO/100 U.S. DOLLARS ($160,000,000.00), with interest on the unpaid
balance (“Balance”) at the rate of FIVE AND TWENTY-NINE HUNDREDTHS PERCENT (5.29%) per annum (“Note
Rate”) from and including the date of the disbursement of Loan proceeds under this Note (“Funding
Date”) until and including Maturity (defined below). Capitalized terms used without definition
shall have the meanings ascribed to them in that certain Collateral Loan Agreement dated of even
date herewith by and between Borrower and Lender (as the same may be amended, supplemented,
restated or otherwise modified from time to time in accordance with the provisions thereof, the
"Loan Agreement”) or in the Instrument (defined below).

     1. Regular Payments. Principal and interest shall be payable as follows:

          (a) Interest from and including the Funding Date to and including March 4, 2007 shall be due
and payable on the Funding Date.

          (b) Principal and interest shall be paid in monthly installments of Nine Hundred Twenty Eight
Thousand Six Hundred Forty-Four and 15/100 U.S. Dollars ($928,644.15) each, commencing on April 5,
2007 and continuing on the fifth (5th) day of each succeeding month to and including the
Maturity Date. Each payment due date is referred to as a “Due Date”.

          (c) The entire Obligations (as defined in the Loan Agreement) shall be due and payable on
March 5, 2012 (“Maturity Date”). “Maturity” shall mean the Maturity Date or earlier date that the
Obligations may be due and payable by acceleration by Lender as provided in the Documents.

          (d) Interest on the Balance for any full month shall be calculated on the basis of a three
hundred sixty (360) day year and the actual number of days elapsed. For any partial month,
interest shall be due in an amount equal to (i) the Note Rate divided by 360 multiplied by (ii) the
number of days in such month any Balance is outstanding through and including the day of payment.

     2. Late Payment and Default Interest.

          (a) Late Charge. If any payment due under the Documents (other than any payment due
on the Maturity Date) is not fully paid by its Due Date, a late charge equal to the lesser of (i)
four percent (4%) of such payments, or (ii) the maximum amount allowed by law (the “Late Charge”)
shall be assessed and be immediately due and payable. The Late Charge may be assessed only once on
each overdue payment. These charges shall be paid to defray the expenses incurred by Lender
in

 

 

handling and processing such delinquent payment(s) and to compensate Lender for the loss of the
use of such funds. Late Charge shall be secured by the Documents. The imposition of the Late
Charge and/or requirement that interest be paid at the Default Rate (defined below) shall not be
construed in any way to (i) excuse Borrower from its obligation to make each payment under this
Note promptly when due or (ii) preclude Lender from exercising any rights or remedies available
under the Documents upon an Event of Default.

          (b) Acceleration. Upon an Event of Default, including a breach of Section 2.1 of the
Loan Agreement, Lender may declare the Balance, unpaid accrued interest, the applicable Prepayment
Premium (defined below) and all other Obligations immediately due and payable in full.

          (c) Default Rate. Upon an Event of Default or at Maturity, whether by acceleration
(due to a voluntary or involuntary default) or otherwise, the entire Obligations (excluding accrued
but unpaid interest if prohibited by law) shall bear interest at the Default Rate. The “Default
Rate” shall be the lesser of (i) the maximum rate allowed by law or (ii) five percent (5%) plus the
greater of (A) the Note Rate or (B) the prime rate (for corporate loans at large United States
money center commercial banks) published in The Wall Street Journal on the first Business
Day (defined below) of the month in which the Event of Default or Maturity occurs or
continues and on the first Business Day of every month thereafter. The term “Business Day” shall
mean a day on which commercial banks are authorized or required by law to close in New York or in
the State where payments made by Borrower are received.

     3. Application of Payments. Before an Event of Default, all payments received under
this Note shall be applied in the following order: (a) to unpaid Late Charges and costs of
collection; (b) to any Prepayment Premium due; (c) to interest on the Balance; and (d) then to the
Balance. After an Event of Default, all payments shall be applied in any order determined by
Lender in its sole discretion.

     4. Prepayment. This Note may only be prepaid in strict accordance with the provisions
of the Loan Agreement.

     5. No Usury. Under no circumstances shall the aggregate amount paid or to be paid as
interest under this Note exceed the highest lawful rate permitted under applicable usury law
(“Maximum Rate”). If under any circumstances the aggregate amounts paid on this Note shall include
interest payments which would exceed the Maximum Rate, Borrower stipulates that payment and
collection of interest in excess of the Maximum Rate (“Excess Amount”) shall be deemed the result
of a mistake by both Borrower and Lender and Lender shall promptly credit the Excess Amount against
the Balance or refund to Borrower any portion of the Excess Amount which cannot be so credited.

     6. Security and Documents Incorporated. This Note is the Fixed A-1 Note referred to
and secured by, among other security, the Instruments (as defined in the Loan Agreement) and
certain other Documents, which contain provisions for the acceleration of the maturity of this Note
upon the occurrence of certain described events. Borrower shall observe and perform all of the
terms and conditions in the Documents. The Documents are incorporated into this Note as if fully
set forth in this Note.

     7. Treatment of Payments. All payments under this Note shall be made, without offset
or deduction, (a) in lawful money of the United States of America at the office of Lender or at the
place (and in the manner) Lender may specify by written notice to Borrower, (b) in immediately
available federal funds, and (c) if received by Lender prior to 2:00 p.m. local time at such place,
shall be credited on that day or else, at Lender’s option, shall be credited on the next Business
Day. Initially (unless waived by Lender), and until Lender shall direct Borrower otherwise,
Borrower shall make all payments due under this Note in the manner set forth in Section 3.13 of the
Instrument. If any Due Date falls on a

2

 

day which is not a Business Day, then the Due Date shall be
deemed to have fallen on the next succeeding Business Day.

     8. Limited Recourse Liability. Except to the extent set forth in this Paragraph 8 and
Paragraph 9 of this Note, Borrower shall not have any personal liability for the Obligations.
Notwithstanding the preceding sentence, Lender may bring a foreclosure action or other appropriate
action to enforce the Documents or realize upon and protect the Property (including, without
limitation, naming Borrower in the actions) and in addition BORROWER SHALL HAVE PERSONAL
LIABILITY FOR:

          (a) the indemnification provisions set forth in Sections 8.03, 8.04, 8.05, 8.06 and 8.07 of
the Instrument, the Environmental Indemnity Agreement, the ERISA Indemnity and any guaranties,
master leases, or similar instruments furnished in connection with the Loan;

          (b) any unpaid assessments and taxes (accrued and/or payable during the term of the Loan) with
respect to the Property;

          (c) (i) any unapplied security deposits (A) not turned over or paid to Lender upon
foreclosure, sale (pursuant to power of sale), or conveyance in lieu thereof, or (B) not turned
over or paid to a receiver or trustee for the Property after appointment; and (ii) any prepaid
rents or prepaid expenses of tenants (to the extent of any such amounts which are applicable to any
period after a default
under the Documents) (A) not turned over or paid to Lender upon foreclosure, sale (pursuant to
power of sale), or conveyance in lieu thereof, or (B) not turned over or paid to a receiver or
trustee for the Property after appointment;

          (d) any insurance proceeds or condemnation awards neither turned over to Lender (to the extent
required by the Instrument) nor used in compliance with Sections 3.07 and 3.08 of the Instrument;

          (e) if Borrower executes an amendment or termination of any Lease without Lender’s prior
written consent (and Lender’s consent was required under the Documents; except that if the sole
reason why Lender’s consent is required is because of the existence of a Potential Event of Default
(as defined in the Loan Agreement), then execution by Borrower of an amendment or termination of a
Lease at the time such Potential Event of Default exists shall not give rise to any personal
liability on the part of Borrower unless it had actual knowledge of the existence of such Potential
Event of Default), Borrower shall have personal liability for the greater of:

               (i) the present value (calculated at the Discount Rate) of the aggregate total dollar amount
(if any) by which (A) rental income and/or other tenant obligations prior to the amendment or
termination of such Lease exceeds (B) rental income and/or other tenant obligations after the
amendment or termination of such Lease (with consideration given to a replacement lease, if any,
having been consummated); or

               (ii) any termination fee or other consideration paid;

          (f) waste of the Property (which shall not include a failure to rebuild after a casualty or
condemnation to the extent Restoration is not required under Sections 3.07 or 3.08 of the
Instrument, as applicable);

          (g) any rents or other income from the Property received by Borrower after an Event of Default
under the Documents and not otherwise applied to the Obligations evidenced by this Note or to the
current (not deferred) operating expenses of the Property; PROVIDED, HOWEVER,

3

 

THAT BORROWER SHALL
HAVE PERSONAL LIABILITY for amounts paid as expenses to a person or entity related to or affiliated
with Borrower unless the payments are expressly permitted in the Documents; provided, however, that
if a person or entity that is related to or affiliated with Borrower is the property manager of the
Property, it may be paid management fees for the management of the Property and Borrower shall not
have personal liability for the amounts paid to such person or entity so long as (i) the management
fees do not exceed the customary management fees in the market area, (ii) no management fees are
paid in advance, and (iii) all other expenses of the Property (including reserves for taxes,
insurance, and similar matters) have been paid or funded prior to the payment of any management
fees to such person or entity;

          (h) Borrower’s failure to maintain any letter of credit required under the Documents, if any;

          (i) any security deposit (a “Security Deposit”) cashed or applied by Borrower or any
termination fee, cancellation fee or any other fee (collectively, a “Termination Fee”) received by
Borrower (x) in connection with a lease termination, cancellation or expiration within three (3)
months prior to or after an Event of Default under the Documents, (y) which is greater than one
month’s base rent for the Lease to which the Security Deposit and/or Termination Fee applies, and
(z) which is not paid to Lender (or an escrow agent selected by Lender) to be disbursed for the
payment of Lender approved (1) tenant improvements and/or (2) market leasing commissions;

          (j) following a default under the Documents, all reasonable attorneys’ fees, including the
reasonable allocated costs of Lender’s staff attorneys, and other expenses incurred by Lender in
enforcing the Documents if Borrower contests, delays, or otherwise hinders or opposes (including,
without limitation, the filing of a bankruptcy) any of Lender’s enforcement actions; provided,
however, that if in such action Borrower successfully proves that a default under the Documents did
not occur, Borrower shall not be required to reimburse Lender for such attorneys’ fees, allocated
costs and other expenses;

          (k) there shall be a breach or violation of Section 2.11 of any of the Instruments;

          (l) without the prior written consent of the Lender, if Borrower or its affiliate shall (i)
terminate, amend, revoke, modify or contradict any Bank Direction Letter (as defined in the Cash
Management Agreement), (ii) direct, cause or permit Clearing Bank (as defined in the Cash
Management Agreement) to transfer funds in the Sweep Accounts (as defined in the Cash Management
Agreement) other than to the Clearing Account (as defined in the Cash Management Agreement), or
(iii) direct or cause any Tenant or any other Person to pay any amount in any manner other than as
provided specifically in the Documents; or

          (m) any amounts for which Borrower or Lender becomes liable pursuant to Section 8.0 of that
certain Exclusive Broker Leasing Agreement between AMB Property, L.P. and Corporate National
Realty, LLC dated June 10, 2006 relating to the Property known as JFK Airgate Center.

     Notwithstanding anything to the contrary contained in this Paragraph 8, if a Cash Management
Period (as defined in the Cash Management Agreement) is in effect, Borrower shall only have
personal liability under Paragraph 8(b) or 8(f) above to the extent that: (A) (i) all amounts then
due and payable to Lender under the Documents (provided that if the Notes have been accelerated
then the amount considered to be due and payable for purposes of clause (i) shall be the amount
that would have been due and payable under the Documents if the Notes had not been accelerated) and
(ii) all amounts otherwise required to be paid by Borrower pursuant to the Documents in connection
with the operation,

4

 

maintenance, repair or restoration of the Property and exceeds (B) (i) any
amounts that Lender has applied in reduction of the principal balance of Notes as a result of the
acceleration of the Notes (i.e. amounts in excess of regularly scheduled payments of principal) and
(ii) the amount of any funds in the Clearing Account (as defined in the Cash Management Agreement)
and Cash Management Account (as defined in the Cash Management Agreement).

     9. Full Recourse Liability. Notwithstanding the provisions of Paragraph 8 of this
Note, BORROWER SHALL HAVE PERSONAL LIABILITY for the Obligations if:

          (a) there shall be any material breach or violation of Section 2 of the Loan Agreement; or

          (b) there shall be any fraud or intentional misrepresentation by Borrower in connection with
the Property, the Documents, the Loan application, or any other aspect of the Loan; provided,
however, that to the extent any such fraud or intentional misrepresentation relates only to one or
more Properties, but not all of the Properties, then personal liability under this Section 9(b)
shall extend only to the amount of the Obligations (including Interest at the Note Rate during the
pendency of any litigation involving title to any Property, whether before or after a foreclosure
of such Property) pertaining to the Properties as to which such fraud or intentional
misrepresentation shall have occurred;

          (c) the Property or any part thereof shall become an asset in (i) a voluntary bankruptcy or
insolvency proceeding or (ii) an involuntary bankruptcy or insolvency proceeding which is not
dismissed within ninety (90) days of filing; provided, however, that this Paragraph 9(c) shall not
apply if an involuntary bankruptcy is filed by Lender;

          (d) any assets of Guarantor (as defined in the Loan Agreement) shall become an asset in (i) a
voluntary bankruptcy or insolvency proceeding or (ii) an involuntary bankruptcy or insolvency
proceeding which is not dismissed within ninety (90) days of filing; provided, however, that this
Paragraph 9(d) shall not apply if an involuntary bankruptcy is filed by Lender; or

          (e) there shall be a breach or violation of Section 8.23(a) or Section 8.23(b) of the Loan
Agreement; provided that Borrower’s liability under this Paragraph 9(e) shall be the Allocated Loan
Amount attributable to the Property known as Alvarado Business Center as set forth on Exhibit A to
the Loan Agreement.

     10. Recourse Limitations. Notwithstanding anything to the contrary in Paragraphs 8
and 9 hereof, Lender acknowledges and agrees that the obligations and liability of Borrower
hereunder shall be limited to the property and assets of the Borrower only, and no other recourse
shall be had to any of the property or assets of any other partners, members, trustees,
beneficiaries, officers, directors, shareholders, employees or agents of the Borrower, or any of
their respective partners, members, trustees, beneficiaries, officers, directors, shareholders,
employees or agents.

     11. Joint and Several Liability. This Note shall be the joint and several obligation
of all makers, endorsers, guarantors and sureties, and shall be binding upon them and their
respective successors and assigns and shall inure to the benefit of Lender and its successors and
assigns.

     12. WAIVER OF TRIAL BY JURY. BORROWER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM FILED BY EITHER PARTY,
WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE DOCUMENTS,
OR ANY ALLEGED ACTS OR OMISSIONS OF LENDER IN CONNECTION THEREWITH.

5

 

     13. Governing Law. This Note shall be governed by and construed in accordance with
the laws of the State of New York.

     14. Amend, Restate and Consolidate. This Note together with the Floating A-2 Note,
Fixed B-1 Note and Floating B-2 Note (i) amends, restates and increases the principal amounts of
those certain promissory notes set forth in Exhibit A attached hereto (the “Other
Notes”) and (ii) does not constitute a novation with respect to any indebtedness evidenced by
the Other Notes.

[Balance of page intentionally left blank]

[Signatures on following page]

6

 

     IN WITNESS WHEREOF, this Note has been executed by Borrower as of the date first set forth
above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP CALIFORNIA, LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB-SGP Operating Partnership,

a Delaware limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property, L.P.,

a Delaware limited partnership,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	AMB Property Corporation,

a Maryland corporation,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	
 

	 

	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	Title:
	 	 Senior Vice President

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP CIF-CALIFORNIA, LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB-SGP Operating Partnership,

a Delaware limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property, L.P.,

a Delaware limited partnership,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	AMB Property Corporation,

a Maryland corporation,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	
 

	 

	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	Title:
	 	 Senior Vice President

7

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP CIF-I, LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB-SGP Operating Partnership,

a Delaware limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property, L.P.,

a Delaware limited partnership,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	AMB Property Corporation,

a Maryland corporation,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	
 

	 

	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	Title:
	 	 Senior Vice President

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP DOCKS, LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB-SGP Operating Partnership,

a Delaware limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property, L.P.,

a Delaware limited partnership,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	AMB Property Corporation,

a Maryland corporation,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	
 

	 

	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	Title:
	 	 Senior Vice President

8

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP GEORGIA, LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB-SGP Operating Partnership,

a Delaware limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property, L.P.,

a Delaware limited partnership,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	AMB Property Corporation,

a Maryland corporation,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	
 

	 

	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	Title:
	 	 Senior Vice President

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP CIF-ILLINOIS, L.P.,

a Delaware limited partnership
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB SGP CIF-Illinois GP LLC,

a Delaware limited liability company,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property II, L.P.,

a Delaware limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Texas AMB I, LLC,

a Delaware limited liability company,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	AMB Property Holding Corporation,

a Maryland corporation,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	 	 	
 

	 

	 	 	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	 	 	Title:
	 	Senior Vice President

9

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	AMB-SGP TX/IL SUB, LLC,

a Delaware limited partnership
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	AMB SGP TX/IL, LP,

a Delaware limited liability company,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	AMB Property II, L.P.,

a Delaware limited partnership,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Texas AMB I, LLC,

a Delaware limited liability company,

its general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	AMB Property Holding Corporation,

a Maryland corporation,

its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:	 	/s/ Gayle P. Starr 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Name:
	 	Gayle P. Starr
	 

	 	 	 	 	 	 	 	 	 	 	 	Title:
	 	Senior Vice President

10

 

EXHIBIT A

Other Notes

1. Amended, restated and consolidated mortgage note (GA/NY) dated March 15, 2005, executed by
AMB-SGP TX/IL, L.P., a Delaware limited partnership, AMB-SGP California, LLC, a Delaware limited
liability company and AMB-SGP Georgia, LLC, a Delaware limited liability company, payable to The
Prudential Insurance Company of America, a New Jersey corporation;

2. (i) Promissory Note in the amount of $31,872,000.00 dated September 20, 2001 made by AMB-SGP
GEORGIA, LLC, a Delaware limited liability company, and AMB-SGP TX/IL, L.P., a Delaware limited
partnership, payable to The Prudential Insurance Company of America, a New Jersey corporation, (ii)
Promissory Note in the amount of $9,843,000.00 dated September 20, 2001 made by AMB-SGP GEORGIA,
LLC, a Delaware limited liability company, and AMB-SGP TX/IL, L.P., a Delaware limited partnership,
payable to The Prudential Insurance Company of America, a New Jersey corporation, (iii) Promissory
Note in the amount of $9,051,000.00 dated September 20, 2001 made by AMB-SGP GEORGIA, LLC, a
Delaware limited liability company, and AMB-SGP TX/IL, L.P., a Delaware limited partnership,
payable to The Prudential Insurance Company of America, a New Jersey corporation, and (iv)
Promissory Note in the amount of $1,934,000.00 dated September 20, 2001 made by AMB-SGP GEORGIA,
LLC, a Delaware limited liability company, and AMB-SGP TX/IL, L.P., a Delaware limited partnership,
payable to The Prudential Insurance Company of America, a New Jersey corporation;

3. Secured Promissory Note in the amount of $12,700,000.00 dated October 28, 1997 made by Airgate
Associates, LLC, a New York limited liability company, payable to AUSA Life Insurance Company,
Inc., a New York corporation (n/k/a Transamerica Financial Life Insurance Company, a New York
corporation);

4. Note in the amount of $2,500,000.00 dated June 19, 1985 executed by Airgate Associates, a New
York general partnership, payable to National Westminster Bank USA;

5. Mortgage Note in the amount of $500,000.00 dated September 19, 1986 executed by Airgate
Associates, a New York general partnership, payable to National Westminster Bank USA;

7. Note in the amount of $3,200,000.00 dated January 30, 1987 executed by Airgate Associates
Second, a New York general partnership, payable to National Westminster Bank USA;

8. Restated Promissory Note in the amount of $3,850,000.00 dated December 14, 1987 executed by
Airgate Associates Second, a general partnership organized and existing under the laws of the State
of New York, payable to The Dime Savings Bank of New York, FSB;

A-1

 

9. Restated Promissory Note in the amount of $3,150,000.00 dated December 14, 1987 executed by
Airgate Associates, a general partnership organized and existing under the laws of the State of New
York, payable to The Dime Savings Bank of New York, FSB;

10. Note in the amount of $4,300,000.00 dated December 18, 1987 executed by Airgate Associates
Third, a New York general partnership, payable to National Westminster Bank USA;

11. Note in the amount of $2,600,000.00 dated August 3, 1988 executed by Airgate Associates Fourth,
a New York general partnership, payable to National Westminster Bank USA;

12. Restated Promissory Note in the amount of $4,500,000.00 dated October 17, 1988 executed by
Airgate Associates Third, a general partnership organized and existing under the laws of the State
of New York, payable to The Dime Savings Bank of New York, FSB.

A-2

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