Document:

Exhibit 10.41

EXHIBIT 10.41

SENIOR SECURED TERM LOAN AGREEMENT

among

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

and

KEYBANK NATIONAL ASSOCIATION,

and

OTHER LENDERS WHICH MAY BECOME PARTIES TO THIS AGREEMENT

and

KEYBANK NATIONAL ASSOCIATION,

AS ADMINISTRATIVE AGENT

with

KEYBANC CAPITAL MARKETS INC.,

AS SOLE LEAD ARRANGER AND SOLE BOOK MANAGER

Dated as of November 10, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	§1. DEFINITIONS AND RULES OF INTERPRETATION
	 	 	1	 
	§1.1. Definitions
	 	 	1	 
	§1.2. Rules of Interpretation
	 	 	23	 
	 
	 	 	 	 
	§2. THE TERM LOAN
	 	 	23	 
	§2.1. Commitment to Lend
	 	 	23	 
	§2.2. The Term Notes
	 	 	24	 
	§2.3. Interest on the Term Loan; Fees
	 	 	24	 
	§2.4. Request for the Term Loan
	 	 	25	 
	§2.5. Conversion Options
	 	 	25	 
	§2.6. [Reserved]
	 	 	26	 
	§2.7. [Reserved]
	 	 	26	 
	§2.8. Increase in Total Commitment
	 	 	26	 
	§2.9. Extension of Term Loan Maturity Date
	 	 	27	 
	 
	 	 	 	 
	§3. REPAYMENT OF THE TERM LOAN
	 	 	27	 
	§3.1. Maturity
	 	 	27	 
	§3.2. Optional Repayments of the Term Loan
	 	 	27	 
	§3.3. Mandatory Repayment of the Term Loan
	 	 	27	 
	 
	 	 	 	 
	§4. CERTAIN GENERAL PROVISIONS
	 	 	28	 
	§4.1. Funds for Payments
	 	 	28	 
	§4.2. Computations
	 	 	28	 
	§4.3. Inability to Determine Libor Rate
	 	 	29	 
	§4.4. Illegality
	 	 	29	 
	§4.5. Additional Costs, Etc.
	 	 	29	 
	§4.6. Capital Adequacy
	 	 	31	 
	§4.7. Certificate; Limitations
	 	 	31	 
	§4.8. Indemnity
	 	 	31	 
	§4.9. Interest on Overdue Amounts; Late Charge
	 	 	32	 
	 
	 	 	 	 
	§5. COLLATERAL
	 	 	32	 
	§5.1. Security Interests
	 	 	32	 
	 
	 	 	 	 
	§6. RECOURSE OBLIGATIONS; JOINT AND SEVERAL LIABILITY
	 	 	32	 

 

-i- 

 

	 	 	 	 	 
	§7. REPRESENTATIONS AND WARRANTIES
	 	 	32	 
	§7.1. Authority, Etc.
	 	 	33	 
	§7.2. Governmental Approvals
	 	 	35	 
	§7.3. Title to Properties; Leases
	 	 	35	 
	§7.4. Financial Statements
	 	 	36	 
	§7.5. No Material Changes, Etc.
	 	 	36	 
	§7.6. Franchises, Patents, Copyrights, Etc.
	 	 	37	 
	§7.7. Litigation
	 	 	37	 
	§7.8. No Materially Adverse Contracts, Etc.
	 	 	37	 
	§7.9. Compliance With Other Instruments, Laws, Etc.
	 	 	37	 
	§7.10. Tax Status
	 	 	38	 
	§7.11. No Event of Default
	 	 	38	 
	§7.12. Investment Company Acts
	 	 	38	 
	§7.13. Name; Jurisdiction of Organization; Absence of UCC Financing Statements, Etc.
	 	 	38	 
	§7.14. Absence of Liens
	 	 	38	 
	§7.15. Certain Transactions
	 	 	39	 
	§7.16. Employee Benefit Plans; Multiemployer Plans; Guaranteed Pension Plans
	 	 	39	 
	§7.17. Regulations U and X
	 	 	39	 
	§7.18. Environmental Compliance
	 	 	39	 
	§7.19. Subsidiaries
	 	 	41	 
	§7.20. Loan Documents
	 	 	41	 
	§7.21. REIT Status
	 	 	41	 
	§7.22. Anti-Terrorism Regulations
	 	 	42	 
	 
	 	 	 	 
	§8. AFFIRMATIVE COVENANTS OF THE BORROWER AND THE TRUST
	 	 	42	 
	§8.1. Punctual Payment
	 	 	43	 
	§8.2. Maintenance of Office; Jurisdiction of Organization, Etc.
	 	 	43	 
	§8.3. Records and Accounts
	 	 	43	 
	§8.4. Financial Statements, Certificates and Information
	 	 	43	 
	§8.5. Notices
	 	 	46	 
	§8.6. Existence of Borrower; Maintenance of Properties
	 	 	48	 
	§8.7. Existence of the Trust; Maintenance of REIT Status of the Trust; Maintenance of Properties
	 	 	48	 
	§8.8. Insurance
	 	 	49	 
	§8.9. Taxes
	 	 	49	 
	§8.10. Inspection of Properties and Books
	 	 	50	 
	§8.11. Compliance with Laws, Contracts, Licenses, and Permits
	 	 	51	 
	§8.12. Use of Proceeds
	 	 	51	 
	§8.13. Additional Borrower; Solvency of Borrower; Removal of Borrower; Addition of Real Estate
Asset to Borrowing Base Pool
	 	 	52	 
	§8.14. Further Assurances; Release of Liens
	 	 	53	 
	§8.15. Interest Rate Protection
	 	 	53	 
	§8.16. Environmental Indemnification
	 	 	54	 
	§8.17. Response Actions
	 	 	54	 
	§8.18. Environmental Assessments
	 	 	54	 
	§8.19. Employee Benefit Plans
	 	 	55	 
	§8.20. No Amendments to Certain Documents
	 	 	55	 

 

-ii- 

 

	 	 	 	 	 
	§9. CERTAIN NEGATIVE COVENANTS OF THE BORROWER AND THE TRUST
	 	 	56	 
	§9.1. Restrictions on Indebtedness
	 	 	56	 
	§9.2. Restrictions on Liens, Etc.
	 	 	58	 
	§9.3. Restrictions on Investments
	 	 	60	 
	§9.4. Merger, Consolidation and Disposition of Assets; Assets of the Trust
	 	 	61	 
	§9.5. Compliance with Environmental Laws
	 	 	62	 
	§9.6. Distributions
	 	 	62	 
	§9.7. Government Regulation
	 	 	63	 
	 
	 	 	 	 
	§10. FINANCIAL COVENANTS; COVENANTS REGARDING ELIGIBLE UNENCUMERED PROPERTIES
	 	 	63	 
	§10.1. Consolidated Total Leverage Ratio
	 	 	63	 
	§10.2. Consolidated Debt Yield
	 	 	63	 
	§10.3. Fixed Charge Coverage Ratio
	 	 	63	 
	§10.4. Net Worth
	 	 	64	 
	§10.5. Unencumbered Pool Leverage
	 	 	64	 
	§10.6. Unencumbered Pool Debt Service Coverage Ratio
	 	 	64	 
	§10.7. Occupancy
	 	 	64	 
	 
	 	 	 	 
	§11. 950 F STREET INVESTMENT
	 	 	65	 
	 
	 	 	 	 
	§12. CONDITIONS TO THE FIRST ADVANCE
	 	 	65	 
	§12.1. Loan Documents
	 	 	65	 
	§12.2. Certified Copies of Organization Documents
	 	 	66	 
	§12.3. By-laws; Resolutions
	 	 	66	 
	§12.4. Incumbency Certificate: Authorized Signers
	 	 	66	 
	§12.5. Opinion of Counsel Concerning Organization and Loan Documents
	 	 	66	 
	§12.6. Guarantees
	 	 	66	 
	§12.7. Financial Analysis of Eligible Borrowing Base Properties; Diligence on Eligible Borrowing
Base Properties
	 	 	67	 
	§12.8. Inspection of Eligible Borrowing Base Properties
	 	 	67	 
	§12.9. Certifications from Government Officials; UCC-11 Reports
	 	 	67	 
	§12.10. Proceedings and Documents
	 	 	67	 
	§12.11. Fees
	 	 	67	 
	§12.12. Closing Certificate
	 	 	67	 
	§12.13. Other Matters
	 	 	68	 
	 
	 	 	 	 
	§13. [RESERVED]
	 	 	68	 
	 
	 	 	 	 
	§14. EVENTS OF DEFAULT; ACCELERATION; ETC.
	 	 	68	 
	§14.1. Events of Default and Acceleration
	 	 	68	 
	§14.3. Remedies
	 	 	72	 

 

-iii- 

 

	 	 	 	 	 
	15. SECURITY INTEREST AND SET-OFF
	 	 	72	 
	15.1. Security Interest
	 	 	72	 
	15.2. Set-Off and Debit
	 	 	73	 
	15.3. Right to Freeze
	 	 	74	 
	15.4. Additional Rights
	 	 	74	 
	 
	 	 	 	 
	§16. THE AGENT
	 	 	74	 
	§16.1. Authorization
	 	 	74	 
	§16.2. Employees and Agents
	 	 	74	 
	§16.3. No Liability
	 	 	74	 
	§16.4. No Representations
	 	 	75	 
	§16.5. Payments
	 	 	75	 
	§16.6. Holders of Notes
	 	 	76	 
	§16.7. Indemnity
	 	 	76	 
	§16.8. Agent as Lender
	 	 	77	 
	§16.9. Notification of Defaults and Events of Default
	 	 	77	 
	§16.10. Duties in Case of Enforcement
	 	 	77	 
	§16.11. Successor Agent
	 	 	78	 
	§16.12. Notices
	 	 	78	 
	 
	 	 	 	 
	§17. EXPENSES
	 	 	78	 
	 
	 	 	 	 
	§18. INDEMNIFICATION
	 	 	79	 
	 
	 	 	 	 
	§19. SURVIVAL OF COVENANTS, ETC.
	 	 	80	 
	 
	 	 	 	 
	§20. ASSIGNMENT; PARTICIPATIONS; ETC.
	 	 	81	 
	§20.1. Conditions to Assignment by Lenders
	 	 	81	 
	§20.2. Certain Representations and Warranties; Limitations; Covenants
	 	 	81	 
	§20.3. Register
	 	 	82	 
	§20.4. New Notes
	 	 	82	 
	§20.5. Participations
	 	 	83	 
	§20.6. Pledge by Lender
	 	 	83	 
	§20.7. No Assignment by Borrower
	 	 	83	 
	§20.8. Disclosure
	 	 	83	 
	§20.9. Syndication
	 	 	83	 
	 
	 	 	 	 
	§21. NOTICES, ETC.
	 	 	84	 
	§22. FPLP AS AGENT FOR THE SUBSIDIARY GUARANTORS
	 	 	86	 
	§23. GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE
	 	 	86	 
	§24. HEADINGS
	 	 	87	 
	§25. COUNTERPARTS
	 	 	87	 
	§26. ENTIRE AGREEMENT, ETC.
	 	 	87	 
	§27. WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS
	 	 	87	 
	§28. CONSENTS, AMENDMENTS, WAIVERS, ETC.
	 	 	88	 
	§29. SEVERABILITY
	 	 	89	 
	§30. INTEREST RATE LIMITATION
	 	 	90	 
	§31. USA PATRIOT ACT NOTIFICATION
	 	 	90	 

 

-iv- 

 

Exhibits to Secured Term Loan Agreement

Exhibit A — Form of Note

Exhibit B — Form of Completed Loan Request

Exhibit C — Forms of Compliance Certificates

Exhibit D — Form of Assignment and Assumption

Exhibit E — Form of Joinder Agreement

 

-v- 

 

Schedules to Secured Term Loan Agreement

	 	 	 
	Schedule 1

	 	Subsidiary Guarantors
	 
	 	 
	Schedule 1A

	 	Borrowing Base Pool
	 
	 	 
	Schedule 2

	 	Lender’s Commitments
	 
	 	 
	Schedule 3

	 	950 F Street Investment
	 
	 	 
	Schedule 7.1(b)

	 	Capitalization
	 
	 	 
	Schedule 7.3(a)

	 	Liens to be Discharged
	 
	 	 
	Schedule 7.3(c)

	 	Partially-Owned Entities
	 
	 	 
	Schedule 7.7

	 	Litigation
	 
	 	 
	Schedule 7.13

	 	Legal Name; Jurisdiction
	 
	 	 
	Schedule 7.15

	 	Affiliate Transactions
	 
	 	 
	Schedule 7.16

	 	Employee Benefit Plans
	 
	 	 
	Schedule 7.19

	 	Subsidiaries
	 
	 	 
	Schedule 9.1(g)

	 	Contingent Liabilities
	 
	 	 
	Schedule 9.6

	 	Negative Pledge Agreements

 

-vi 

 

SECURED TERM LOAN AGREEMENT

This SECURED TERM LOAN AGREEMENT is made as of the 10th day of November, 2010, by
and among FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP, a Delaware limited partnership (the
“Borrower” or “FPLP”), having its principal place of business at 7600 Wisconsin Avenue,
11th Floor, Bethesda, Maryland 20814; KEYBANK NATIONAL ASSOCIATION (“KeyBank”), having a
principal place of business at 127 Public Square, Cleveland, Ohio 44114 and the other lending
institutions which are as of the date hereof or may become parties hereto pursuant to §20
(individually, a “Lender” and collectively, the “Lenders”); and KEYBANK NATIONAL ASSOCIATION, as
administrative agent for itself and each other Lender (the “Agent”); and KEYBANC CAPITAL MARKETS
INC., as Sole Lead Arranger and Sole Book Manager.

RECITALS

A. The Borrower is primarily engaged in the business of owning, acquiring, developing,
renovating and operating office, industrial and so-called flex properties in the Mid-Atlantic
region of the United States.

B. First Potomac Realty Trust, a Maryland real estate investment trust (the “Trust”), is the
sole general partner of FPLP, holds in excess of 80% of the partnership interests in FPLP as of the
date of this Agreement, and is qualified to elect REIT status for income tax purposes and has
agreed to guaranty the obligations of the Borrower hereunder and under the other Loan Documents (as
defined below).

C. The Borrower and the Trust have requested, and the Lenders have agreed to establish, a
senior secured term loan in favor of the Borrower pursuant to the terms and conditions hereof.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the
parties hereto agree to the terms and conditions of this Agreement as set forth below:

§1. DEFINITIONS AND RULES OF INTERPRETATION.

§1.1. Definitions. The following terms shall have the meanings set forth in this §1 or
elsewhere in the provisions of this Agreement referred to below:

AAP Qualification. See §7.6.

 

-1-

 

Account Agreement. Collectively, (i) any Account Pledge, Assignment and Control
Agreement entered into from time to time in accordance with the terms hereof in favor of the Agent
on behalf of the Lenders with respect to the pledged deposit account into which Distributions
pledged pursuant to an Equity Pledge Agreement may be required to be deposited and (ii) each of the
other documents, agreements and instruments, if any, including control agreements, entered into by
the Borrower or a Subsidiary Guarantor and/or any financial institution in favor of the Agent on
behalf of the Lenders with respect to Distributions.

Accountants. In each case, independent certified public accountants reasonably
acceptable to the Majority Lenders. The Lenders hereby acknowledge that the Accountants may
include KPMG LLP and any other so-called “big-four” accounting firm.

Accounts Payable. Accounts payable of the Borrower, the Trust and their respective
Subsidiaries, as determined in accordance with GAAP.

Addition Request. See §8.13(a)(i).

Adjusted EBITDA. As at any date of determination, an amount equal to (i) Consolidated
EBITDA for the applicable period; minus (ii) the Capital Reserve on such date.

Adjusted Net Operating Income. As at any date of determination, an amount equal to
(i) the Net Operating Income of the Unencumbered Pool for the applicable period; minus (ii)
the Unencumbered Pool Capital Reserve on such date.

Affiliate. With reference to any Person, (i) any director, officer, general partner,
trustee or managing member (or the equivalent thereof) of that Person, (ii) any other Person
controlling, controlled by or under direct or indirect common control of that Person, (iii) any
other Person directly or indirectly holding 5% or more of any class of the capital stock or other
equity interests (including options, warrants, convertible securities and similar rights) of that
Person, (iv) any other Person 5% or more of any class of whose capital stock or other equity
interests (including options, warrants, convertible securities and similar rights) is held directly
or indirectly by that Person, and (v) any Person directly or indirectly controlling that Person,
whether through a management agreement, voting agreement, other contract or otherwise. In no event
shall the Agent or any Lender be deemed to be an Affiliate of the Borrower.

Agent. See the preamble to this Agreement. The Agent shall include any successor
agent, as permitted by §16.

Agent’s Head Office. The Agent’s office located at 127 Public Square, Cleveland, Ohio
44114, or at such other location as the Agent may designate from time to time, or the office of any
successor agent permitted under §16.

 

-2-

 

Agreement. This Senior Secured Term Loan Agreement, including the Schedules
and Exhibits hereto, as the same may be from time to time amended, restated, modified
and/or supplemented and in effect.

Agreement of Limited Partnership of the Borrower. The Amended and Restated Agreement
of Limited Partnership of FPLP, dated September 15, 2003, as amended, among the Trust and the
limited partners named therein, as amended through the date hereof and as the same may be further
amended from time to time as permitted by §8.20.

Anti-Terrorism Laws. Any laws relating to terrorism or money laundering, including
Executive Order No. 13224, the USA Patriot Act of 2001, 31 U.S.C. Section 5318, the laws comprising
or implementing the Bank Secrecy Act, and the laws administered by the United States Treasury
Department’s Office of Foreign Asset Control (as any of the foregoing laws may from time to time be
amended, renewed, extended, or replaced).

Applicable Base Rate Margin. The Applicable Base Rate Margin is set forth in §2.3(c).

Applicable Libor Margin. The Applicable Libor Margin is set forth in §2.3(c).

Arranger. KeyBanc Capital Markets Inc.

Assignment and Assumption. See §20.1.

Base Rate. As at any applicable date of determination, the greater of (i) the
fluctuating annual rate of interest announced from time to time by the Agent at the Agent’s Head
Office as its “prime rate” and (ii) one half of one percent (0.50%) plus the Federal Funds
Effective Rate. The Base Rate is a reference rate and does not necessarily represent the lowest or
best rate being charged to any customer. Any change in the rate of interest payable hereunder
resulting from a change in the Base Rate shall become effective as of the opening of business on
the day on which such change in the Base Rate becomes effective, without notice or demand of any
kind.

Base Rate Loan(s). The portion(s) of the Term Loan bearing interest calculated by
reference to the Base Rate.

Borrower. See the preamble hereto.

 

-3-

 

Borrowing Base Pool. As determined from time to time, collectively, the Eligible
Borrowing Base Properties that the Borrower has designated in writing to be included in the
Borrowing Base Pool, subject to and in accordance with the terms hereof. The Borrowing Base Pool
as of the Closing Date is set forth on Schedule 1A.

Borrowing Base Property Conditions. See definition of “Eligible Borrowing Base
Property(ies)”.

Building(s). Individually and collectively, the buildings, structures and
improvements now or hereafter located on the Real Estate Assets.

Business Day. (i) For all purposes other than as covered by clause (ii) below, any
day other than a Saturday, Sunday or legal holiday on which banks in Cleveland, Ohio are open for
the conduct of a substantial part of their commercial banking business; and (ii) with respect to
all notices and determinations in connection with, and payments of principal and interest on, Libor
Rate Loans, any day that is a Business Day described in clause (i) and that is also a Libor
Business Day.

Capital Expenditures. Any expenditure for any item that would be treated or defined
as a capital expenditure under GAAP.

Capital Reserve. As at any date of determination, a capital reserve equal to the
weighted average of square feet of the Real Estate Assets during the applicable period, multiplied
by $0.15 per annum.

Capitalization Rate. The Capitalization Rate shall be 8.50%.

Capitalized Leases. Leases under which the Borrower or any of its Subsidiaries or any
Partially-Owned Entity is the lessee or obligor, the discounted future rental obligations under
which are required to be capitalized on the balance sheet of the lessee or obligor in accordance
with GAAP.

Cash and Cash Equivalents. As of any date of determination, the sum of (a) the
aggregate amount of unrestricted cash then actually held by the Borrower or any of its
Subsidiaries, (b) the aggregate amount of unrestricted cash equivalents (valued at fair market
value) then held by the Borrower or any of its Subsidiaries and (c) the aggregate amount of cash
then actually held by the Borrower or any of its Subsidiaries in the form of tenant security
deposits, but only to the extent such tenant security deposits are included as a liability on the
Borrower’s Consolidated balance sheet, escrows and reserves. As used in this definition, (i)
“unrestricted” means the specified asset is not subject to any Liens in favor of any Person, and
(ii) “cash equivalents” means that such asset has a liquid, par value in cash and is convertible to
cash on demand. Notwithstanding anything contained herein to the contrary, the term Cash and Cash
Equivalents shall not include the Loan.

 

-4-

 

CERCLA. See §7.18.

Closing Date. November 10, 2010.

Code. The Internal Revenue Code of 1986, as amended and in effect from time to time.

Collateral. Collectively, the property, rights and interests of the Borrower and the
Subsidiary Guarantors which are subject to the security interests and liens created by the Security
Documents.

Commitment. With respect to each Lender, the amount set forth from time to time on
Schedule 2 hereto as the amount of such Lender’s Commitment to make the Term Loan to the
Borrower, as such Schedule 2 may be updated by the Agent from time to time.

Commitment Percentage. With respect to each Lender, the percentage set forth on
Schedule 2 hereto as such Lender’s percentage of the Total Commitment, as such Schedule
2 may be updated by the Agent from time to time.

Completed Loan Request. A loan request accompanied by all information required to be
supplied under the applicable provisions of §2.4.

Consolidated or consolidated. With reference to any term defined herein, shall mean
that term as applied to the accounts of the Borrower, the Trust and their respective Subsidiaries,
consolidated in accordance with GAAP.

Consolidated Debt Yield. In relation to the Borrower, the Trust and their respective
Subsidiaries for any fiscal quarter, the percentage determined by dividing (i) Consolidated EBITDA
for the most recent fiscal quarter, annualized by (ii) Consolidated Total Indebtedness as of the
last day of such fiscal quarter.

Consolidated EBITDA. In relation to the Borrower, the Trust and their respective
Subsidiaries for any applicable period, an amount equal to, without double-counting, the net income
or loss of the Borrower, the Trust and their respective Subsidiaries determined in accordance with
GAAP (before minority interests and excluding the adjustment for so-called “straight-line rent
accounting”) for such period, plus (x) the following to the extent deducted in computing
such Consolidated net income for such period: (i) Consolidated Total Interest Expense for such
period, (ii) losses attributable to the sale or other disposition of assets or debt restructurings
in such period, (iii) real estate depreciation and amortization for such period, and (iv) other
non-cash charges for such period; and minus (y) all gains attributable to the sale or other
disposition of assets or debt restructurings in such period, in each case adjusted to include the
Borrower’s, the Trust’s or any Subsidiary’s pro rata share of EBITDA (and the items
comprising EBITDA) from any Partially-Owned Entity in such period, based on its percentage
ownership interest in such Partially-Owned Entity (or such other amount to which the Borrower, the
Trust or such Subsidiary is entitled or for which the Borrower, the Trust or such Subsidiary is obligated
based on an arm’s length agreement).

 

-5-

 

Consolidated Fixed Charges. For any applicable period, an amount equal to the sum of
(i) Consolidated Total Interest Expense for such period plus (ii) the aggregate amount of
scheduled principal payments of Indebtedness (excluding balloon payments at maturity) required to
be made during such period by the Borrower, the Trust and their respective Subsidiaries on a
Consolidated basis plus (iii) the dividends and distributions, if any, paid or required to
be paid during such period on the Preferred Equity, if any, of the Borrower, the Trust and their
respective Subsidiaries (other than dividends paid in the form of capital stock), in each case
adjusted to include the Borrower’s, the Trust’s or any Subsidiary’s pro rata share of the foregoing
items of any Partially-Owned Entity in such period, based on its percentage ownership interest in
such Partially-Owned Entity (or such other amount for which the Borrower, the Trust or such
Subsidiary is obligated based on an arm’s length agreement).

Consolidated Gross Asset Value. As of any date of determination, the sum of (i)(x)
the Net Operating Income of all of the Real Estate Assets (except as provided below) for the most
recent fiscal quarter, less the Management Fee Adjustment, with the sum thereof multiplied by (y)
4; with the product thereof being divided by (z) the Capitalization Rate; plus (ii) an amount equal
to the Cost Basis Value of Real Estate Assets Under Development on such date, plus (iii) the Cost
Basis Value of Land on such date, plus (iv) the cost basis of Mortgage Notes on such date, plus (v)
the value of Cash and Cash Equivalents on such date, as determined in accordance with GAAP and
approved by the Agent, provided that (i) Net Operating Income from Real Estate Assets acquired
during the applicable fiscal quarter and the immediately preceding fiscal quarter shall be
excluded, and such acquired Real Estate Assets shall be included at their Cost Basis Value, and
(ii) Net Operating Income from Real Estate Assets sold or otherwise transferred during the
applicable fiscal quarter shall be excluded, with Consolidated Gross Asset Value being adjusted to
include the Borrower’s, the Trust’s or any Subsidiary’s pro rata share of Net Operating Income (and
the items comprising Net Operating Income) from any Partially-Owned Entity in such period, based on
its percentage ownership interest in such Partially-Owned Entity (or such other amount to which the
Borrower, the Trust or such Subsidiary is entitled based on an arm’s length agreement).

Consolidated Tangible Net Worth. As of any date of determination, an amount equal to
the Consolidated Gross Asset Value of the Borrower and its Subsidiaries at such date, minus
Consolidated Total Indebtedness outstanding on such date, provided that any amounts
attributable to Real Estate Assets that are required to be reported as “intangibles” under GAAP
pursuant to Financial Accounting Standards Board Statement of Policy No. 141 and 142 shall be
permitted to be added back to “tangible property” for purposes of calculating such Consolidated
Tangible Net Worth.

 

-6-

 

Consolidated Total Indebtedness. As of any date of determination, Consolidated Total
Indebtedness means for the Borrower, the Trust and their respective Subsidiaries, all obligations,
contingent or otherwise, which should be classified on the obligor’s balance sheet as liabilities,
or to which reference should be made by footnotes thereto, all in accordance with GAAP, including,
in any event, the sum of (without double-counting), (i) all Accounts Payable on such date, and (ii)
all Indebtedness outstanding on such date, in each case whether Recourse, Without Recourse or
contingent, provided, however, that amounts not drawn under the Unsecured Revolver
Agreement on such date shall not be included in calculating Consolidated Total Indebtedness,
and provided, further, that (without double-counting), each of the following shall
be included in Consolidated Total Indebtedness: (a) all amounts of guarantees, indemnities for
borrowed money, stop-loss agreements and the like provided by the Borrower, the Trust and their
respective Subsidiaries, in each case in connection with and guarantying repayment of amounts
outstanding under any other Indebtedness; (b) all amounts for which a letter of credit (including
Letters of Credit issued under the Unsecured Revolver Agreement) has been issued for the account of
the Borrower, the Trust or any of their respective Subsidiaries; (c) all amounts of bonds posted by
the Borrower, the Trust or any of their respective Subsidiaries guaranteeing performance or payment
obligations; (d) all lease obligations (including under Capital Leases, but excluding obligations
under ground leases); and (e) all liabilities of the Borrower, the Trust or any of their respective
Subsidiaries as partners, members or the like for liabilities (whether such liabilities are
Recourse, Without Recourse or contingent obligations of the applicable partnership or other Person)
of partnerships or other Persons in which any of them have an equity interest, which liabilities
are for borrowed money or any of the matters listed in clauses (a), (b), (c) or (d) above. Without
limitation of the foregoing (without double counting), with respect to any Partially-Owned Entity,
(x) to the extent that the Borrower, the Trust or any of their respective Subsidiaries or such
Partially-Owned Entity is providing a completion guaranty in connection with a construction loan
entered into by a Partially-Owned Entity, Consolidated Total Indebtedness shall include the
Borrower’s, the Trust’s or such Subsidiary’s pro rata liability under the
Indebtedness relating to such completion guaranty (or, if greater, the Borrower’s, the Trust’s or
such Subsidiary’s potential liability under such completion guaranty) and (y) in connection with
the liabilities described in clauses (a) and (d) above (other than completion guarantees, which are
referred to in clause (x)), the Consolidated Total Indebtedness shall include the portion of the
liabilities of such Partially-Owned Entity which are attributable to the Borrower’s, the Trust’s or
such Subsidiary’s percentage equity interest in such Partially-Owned Entity or such greater amount
of such liabilities for which the Borrower, the Trust or their respective Subsidiaries are, or
have agreed to be, liable by way of guaranty, indemnity for borrowed money, stop-loss agreement or
the like, it being agreed that, in any case, Indebtedness of a Partially-Owned Entity shall not be
excluded from Consolidated Total Indebtedness by virtue of the liability of such Partially-Owned
Entity being Without Recourse. For purposes hereof, the amount of borrowed money shall equal the
sum of (1) the amount of borrowed money as determined in accordance with GAAP plus (2) the
amount of those contingent liabilities for borrowed money set forth in subsections (a) through (e) above, but shall
exclude any adjustment for so-called “straight-line interest accounting”.

 

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Consolidated Total Interest Expense. For any applicable period, the aggregate amount
of interest required in accordance with GAAP to be paid, accrued, expensed or, to the extent it
could be a cash expense in the applicable period, capitalized, without double-counting, by the
Borrower, the Trust and their respective Subsidiaries during such period on: (i) all Indebtedness
of the Borrower, the Trust and their respective Subsidiaries (including the Term Loan and
obligations under Capital Leases (to the extent Consolidated EBITDA has not been reduced by such
Capital Lease obligations in the applicable period) and any Subordinated Indebtedness and including
original issue discount and amortization of prepaid interest, if any, but excluding any
Distribution on Preferred Equity), (ii) all amounts available for borrowing, or for drawing under
letters of credit (including Letters of Credit issued under the Unsecured Revolver Agreement), if
any, issued for the account of the Borrower, the Trust or any of their respective Subsidiaries, but
only if such interest was or is required to be reflected as an item of expense, and (iii) all
commitment fees, agency fees, facility fees, balance deficiency fees and similar fees and expenses
in connection with the borrowing of money, in each case adjusted to include the Borrower’s, the
Trust’s or any Subsidiary’s pro rata share of the foregoing items of any Partially-Owned Entity in
such period, based on its percentage ownership interest in such Partially-Owned Entity (or such
other amount for which the Borrower, the Trust or such Subsidiary is obligated based on an arm’s
length agreement).

Conversion Request. A notice given by the Borrower to the Agent of its election to
convert or continue a Loan in accordance with §2.5.

Cost Basis Value. The total contract purchase price of a Real Estate Asset plus all
commercially reasonable acquisition costs (including but not limited to title, legal and settlement
costs, but excluding financing costs) that are capitalized in accordance with GAAP.

Default. When used with reference to this Agreement or any other Loan Document, an
event or condition specified in §14.1 that, but for the requirement that time elapse or notice be
given, or both, would constitute an Event of Default.

Delinquent Lender. See §16.5(c).

Disqualifying Environmental Event. Any Release or threatened Release of Hazardous
Substances, any violation of Environmental Laws or any other similar environmental event with
respect to any Eligible Borrowing Base Property that could reasonably be expected to cost in excess
of $500,000 to remediate or, which, with respect to all of the Eligible Borrowing Base Properties,
could reasonably be expected to cost in excess of $1,000,000 in the aggregate to remediate.

 

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Disqualifying Structural Event. Any structural issue which, with respect to any
Eligible Borrowing Base Property, could reasonably be expected to cost in excess of $500,000 to
remediate or, which, with respect to all of the Eligible Borrowing Base Properties, could
reasonably be expected to cost in excess of $1,000,000 in the aggregate to remediate.

Distribution. With respect to:

	 	(i)	 	the Borrower, any distribution of cash or other cash
equivalent, directly or indirectly, to the partners or other equity holders of
the Borrower; or any other distribution on or in respect of any Equity
Interests of the Borrower; and

	 	(ii)	 	the Trust, the declaration or payment of any dividend on or
in respect of any shares of any class of capital stock or other Equity
Interests of the Trust, other than dividends payable solely in shares of
common stock by the Trust; the purchase, redemption, or other retirement of
any shares of any class of capital stock or other Equity Interests of the
Trust, directly or indirectly through a Subsidiary of the Trust or otherwise;
the return of capital by the Trust to its shareholders as such; or any other
distribution on or in respect of any shares of any class of capital stock or
other Equity Interests of the Trust.

Dollars or $. Lawful currency of the United States of America.

Drawdown Date. The date on which the Term Loan is made, and the date on which any
portion of the Term Loan is converted or continued in accordance with §2.5.

Eligible Assignee. Any of (a) a commercial bank (or similar financial institution)
organized under the laws of the United States, or any State thereof or the District of Columbia,
and having total assets in excess of $500,000,000; (b) a savings and loan association or savings
bank organized under the laws of the United States, or any State thereof or the District of
Columbia, and having a net worth of at least $100,000,000, calculated in accordance with GAAP; and
(c) a commercial bank (or similar financial institution) organized under the laws of any other
country (including the central bank of such country) which is a member of the Organization for
Economic Cooperation and Development (the “OECD”), or a political subdivision of any such country,
and having total assets in excess of $500,000,000, provided that such bank (or similar
financial institution) is acting through a branch or agency located in the United States of
America; (d) a Lender, and (e) an Affiliate of a Lender, provided that such Affiliate would
otherwise meet the criteria set forth in clause (a), (b) or (c) above. In no event will the
Borrower or any Subsidiary or Affiliate of the Borrower be an Eligible Assignee.

 

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Eligible Borrowing Base Property(ies). As of any date of determination, a Real Estate
Asset that: (i) is a Permitted Property, (ii) is wholly-owned in fee simple by the Borrower or a
Subsidiary Guarantor, (iii) the Borrower or such Subsidiary Guarantor has total control over all
decisions regarding such Real Estate Asset (including the operation, financing and disposition
thereof), (iv) is not the subject of a Disqualifying Environmental Event or a Disqualifying
Structural Event, (v) is not subject to any Liens (other than Permitted Liens) or any material
title, survey or similar defect, and (vi) if owned by any Subsidiary Guarantor, the Equity
Interests of such Subsidiary Guarantor are not subject to any Lien in favor of any Person other
than the Agent and the Lenders and are not subject to any negative pledge in favor of any Person
other than the Agent and the Lenders (the foregoing clauses (i) through (vi) being herein referred
to collectively as the “Borrowing Base Property Conditions”); provided, however,
that notwithstanding the foregoing, with respect to the Redland Property: (A) clauses (ii) and (vi)
above shall be deemed satisfied so long as (x) the Borrower owns, directly or indirectly, the FP
Redland Tech Equity Interests, (y) the FP Redland Tech Equity Interests are pledged to the Agent
pursuant to an Equity Pledge Agreement and the Agent has a perfected first-priority security
interest in the FP Redland Tech Equity Interests and (z) the FP Redland Tech Equity Interests are
not subject to any Lien in favor of any Person other than the Agent and the Lenders and, without
prejudice to Section 14.1(n), solely with respect to the JV Springing Rights, Perseus, and are not
subject to any negative pledge in favor of any Person other than the Agent and the Lenders; and (B)
clause (iii) above shall be deemed satisfied so long as the only exceptions thereto are the rights
of Perseus in connection with Major Decisions (as defined in Section 6.4 of the Tech LP Agreement),
in all cases with the requirements of clauses (i), (iv) and (v) above of this definition to be
satisfied.

Eligible Unencumbered Property. Has the meaning set forth therefor in the Unsecured
Revolver Agreement.

Employee Benefit Plan. Any employee benefit plan within the meaning of §3(3) of ERISA
maintained or contributed to by the Borrower or any ERISA Affiliate, other than a Multiemployer
Plan.

Environmental Laws. See §7.18(a).

Environmental Reports. See §7.18

Equity Interests. Any and all shares, partnership or member interests, participations
or other equivalents (however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person which is not a corporation and any and all warrants, options or
other rights to purchase any of the foregoing.

 

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Equity Pledge Agreement. The one or more Equity Pledge Agreements entered into by the
Borrower and/or a Subsidiary Guarantor pursuant to which the Pledged Equity Interests are pledged
to the Agent and the Lenders.

ERISA. The Employee Retirement Income Security Act of 1974, as amended and in effect
from time to time.

ERISA Affiliate. Any Person which is treated as a single employer with the Borrower
under §414 of the Code.

ERISA Reportable Event. A reportable event with respect to a Guaranteed Pension Plan
within the meaning of §4043 of ERISA and the regulations promulgated thereunder.

Event of Default. See §14.1.

Existing Term Loan Agreement. The Secured Term Loan Agreement dated as of August 7,
2007, among the Borrower and certain of its subsidiaries, KeyBank National Association,
individually and as administrative agent and certain other lenders, as the same may be modified,
increased, amended or restated from time to time.

Extension. See §2.9.

Federal Funds Effective Rate. For any day, a fluctuating interest rate per annum equal
to the weighted average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such
day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day that is a Business Day, the average of the
quotations for such day on such transactions received by the Agent from 3 federal funds brokers of
recognized standing selected by the Agent.

Financial Statement Date. September 30, 2010.

FP Redland Tech. FP Redland Technology Center, L.P., a Delaware limited partnership.

 

FP Redland Tech Equity Interests. Collectively, (i) the sole general partnership
interest, (ii) no less than 90% of the common equity limited partnership interests, and (iii) all
of the preferred limited partnership interests, in each case, in FP Redland Tech.

 

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“funds from operations”. As defined in accordance with resolutions adopted by the
Board of Governors of the National Association of Real Estate Investment Trusts, as in effect at
the applicable date of determination.

GAAP. Generally accepted accounting principles, consistently applied.

Guaranteed Pension Plan. Any employee pension benefit plan within the meaning of
§3(2) of ERISA maintained or contributed to by the Borrower or the Trust, as the case may be, or
any ERISA Affiliate of any of them the benefits of which are guaranteed on termination in full or
in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer Plan.

Hazardous Substances. See §7.18(b).

Indebtedness. All obligations, contingent and otherwise, that in accordance with GAAP
should be classified upon the obligor’s balance sheet as liabilities, or to which reference should
be made by footnotes thereto, including in any event and whether or not so classified: (a) all debt
and similar monetary obligations, whether direct or indirect, including, without limitation, all
Obligations and all obligations under any hedge, swap or other interest rate protection
arrangement, any forward purchase contract or any put (it being agreed that for purposes of
determining the amount of the obligations under any such hedge, swap or other interest rate
protection arrangement, the Borrower shall mark-to-market such arrangements in accordance with GAAP
on a quarterly basis); (b) all liabilities secured by any Lien, or other encumbrance existing on
property owned or acquired subject thereto, whether or not the liability secured thereby shall have
been assumed; (c) all reimbursement obligations under letters of credit (including the Letters of
Credit issued under the Unsecured Revolver Agreement); and (d) all guarantees of borrowed money,
endorsements and other contingent obligations, whether direct or indirect, in respect of
indebtedness or obligations of others, including any obligation to supply funds (including
partnership obligations and capital requirements) to or in any manner to invest in, directly or
indirectly, the debtor, to purchase indebtedness, or to assure the owner of indebtedness against
loss, through an agreement to purchase goods, supplies, or services for the purpose of enabling the
debtor to make payment of the indebtedness held by such owner or otherwise.

Interest Payment Date. As to any portion of the Term Loan, the last day of every
calendar month in which such Loan is outstanding, and, in addition, with respect to any Libor Rate
Loan, the last day of the applicable Interest Period.

 

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Interest Period. With respect to any portion of the Term Loan, but without
duplication of any other Interest Period, (a) initially, the period commencing on the Drawdown Date
of such Loan and ending on the last day of one of the following periods (as selected by the
Borrower in a Completed Loan Request): (i) for any Base Rate Loan, the calendar month in which such
Base Rate Loan is made (whether by borrowing or by conversion from a Libor Rate Loan), and (ii) for
any Libor Rate Loan, [1, 2 or 3] months; and (b) thereafter, each period commencing at the end of
the last day of the immediately preceding Interest Period applicable to such portion of the Term
Loan and ending on the last day of the applicable period set forth in (a)(i) and (ii) above (as
selected by the Borrower in a Conversion Request); provided that all of the foregoing
provisions relating to Interest Periods are subject to the following:

(A) if any Interest Period with respect to a LIBOR Rate Loan would otherwise
end on a day that is not a LIBOR Business Day, such Interest Period shall end on
the next succeeding LIBOR Business Day, unless such next succeeding LIBOR
Business Day occurs in the next calendar month, in which case such Interest
Period shall end on the next preceding LIBOR Business Day, as determined
conclusively by the Agent in accordance with the then current bank practice in
London;

(B) if the Borrower shall fail to give notice of conversion as provided in
§2.5, the Borrower shall be deemed to have requested a conversion of the affected
Libor Rate Loan to a Base Rate Loan on the last day of the then current Interest
Period with respect thereto;

(C) any Interest Period relating to any Libor Rate Loan that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall, subject to subparagraph (D) below, end on the last Business Day of
a calendar month; and

(D) no Interest Period may extend beyond the Maturity Date.

Investments. All expenditures made and all liabilities incurred (contingently or
otherwise, but without double-counting): (i) for the acquisition of stock, partnership or other
equity interests or for the acquisition of Indebtedness of, or for loans, advances, capital
contributions or transfers of property to, any Person; (ii) in connection with Real Estate Assets
Under Development; and (iii) for the acquisition of any other obligations of any Person. In
determining the aggregate amount of Investments outstanding at any particular time: (a) there shall
be deducted in respect of each such Investment any amount received as a return of capital (but only
by repurchase, redemption, retirement, repayment, liquidating dividend or liquidating
distribution); (b) there shall not be deducted in respect of any Investment any amounts received as
earnings on such Investment, whether as dividends, interest or otherwise; and (c) there shall not
be deducted from the aggregate amount of Investments any decrease in the value thereof.

 

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Joinder Documents. The one or more Joinder Agreements among the Agent (on behalf of
itself and the Lenders) and any Wholly-owned Subsidiary which is to become a Subsidiary Guarantor
at any time after the Closing Date, the form of which is attached hereto as Exhibit E,
together with all other documents, instruments and certificates required by any such Joinder
Agreement to be delivered by such Wholly-owned Subsidiary to the Agent and the Lenders on the date
such Wholly-owned Subsidiary becomes a Subsidiary Guarantor hereunder.

JV Springing Rights. Those certain rights of Perseus under Section 3.8 of the Tech LP
Agreement as in effect on the date hereof.

Land. An undeveloped Real Estate Asset owned in fee by the Borrower.

Leases. Leases, licenses and other written agreements relating to the use or
occupation of space in or on the Buildings or on the Real Estate Assets by persons other than the
Borrower or any other member of the Potomac Group.

Lenders. Collectively, KeyBank and each other lending institution which, as of any
date of determination, is a party to this Agreement, and any other Person who becomes an assignee
of any rights of a Lender pursuant to §20 or a Person who acquires all or substantially all of the
stock or assets of a Lender.

Libor Business Day. Any day on which commercial banks are open for international
business (including dealings in Dollar deposits) in London, England.

Libor Breakage Costs. With respect to any Libor Rate Loan to be prepaid prior to the
end of the applicable Interest Period or not borrowed, converted or continued (“drawn” and, with
correlative meaning, “draw”) after elected, a prepayment “breakage” fee in an amount, as reasonably
determined by the Agent, required to compensate the Lenders for any and all additional losses,
costs or expenses that such Lenders incur as a result of such prepayment or failure to borrow,
convert or continue a Libor Rate Loan, including, without limitation, any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of
deposits of other funds acquired by any Lender to fund or maintain such Libor Rate Loan.

Libor Rate. For any Libor Rate Loan for any Interest Period, the average rates as
shown in Reuters Screen LIBOR01 Page (or any successor service) at which deposits in U.S. dollars
are offered by first class banks in the London Interbank Market at approximately 11:00 a.m. (London
time) on the day that is two (2) Libor Business Days prior to the first day of such Interest Period
with a maturity approximately equal to such Interest Period and in an amount approximately equal to
the amount to which such Interest Period relates, adjusted for reserves and taxes if required by
future regulations. If Reuters no longer reports such rate or Agent determines in good faith that
the rate so reported no longer accurately reflects the rate available to Agent in the London
Interbank Market, then any and all outstanding Loans shall be Base Rate Loans and bear interest at
the Base Rate plus the Applicable Base Rate Margin. For any period during which a Reserve
Percentage shall apply, the Libor Rate with respect to Libor Rate Loans shall be equal to the
amount determined above divided by an amount equal to 1 minus the Reserve Percentage.

 

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Libor Rate Loan(s). The portion(s) of the Term Loan bearing interest calculated by
reference to the Libor Rate.

Lien. See §9.2.

Loan. The Term Loan or any portion thereof, as the context may require.

Loan Documents. Collectively, this Agreement, the Trust Guaranty, each Subsidiary
Guaranty, the Notes, the Security Documents, the Joinder Documents and any and all other
agreements, instruments, documents or certificates now or hereafter evidencing or otherwise
relating to the Term Loan and executed and delivered by or on behalf of the Borrower or its
Subsidiaries or the Trust or its Subsidiaries in connection with or in any way relating to the Term
Loan or the transactions contemplated by this Agreement, and all schedules, exhibits and annexes
hereto or thereto, as any of the same may from time to time be amended and in effect.

Majority Lenders. As of any date of determination, the Lenders whose aggregate
Commitments constitute at least sixty-six and two-thirds percent (66-2/3%) of the Total Commitment.

Management Fee. For any applicable period, an amount equal to three percent (3%) of
revenue.

Management Fee Adjustment. For any applicable period, the difference between the
Management Fee and the Overhead Allocation, expressed as a positive or negative number, as the case
may be.

Maturity Date. February 10, 2011, or such earlier date (or later date pursuant to
§2.9) on which the Term Loan shall become due and payable pursuant to the terms hereof. The
Maturity Date may be extended to May 10, 2011 in accordance with the terms of §2.9.

Merger. The merger of USPF III RTC GP LLC, a Delaware limited liability company and the
general partner of USPF III Redland Technology Center LP, a Delaware limited partnership, with and
into USPF III Redland Technology Center LP, with USPF III Redland Technology Center LP surviving
such merger, all as more fully described in the Agreement and Plan of Merger dated as of November
10, 2010 between such entities.

 

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Mortgage Note(s). A mortgage note, in which the Borrower holds a direct interest as
payee, for real estate that is developed, so long as at the relevant date of determination, such
Mortgage Note is not in default.

Multiemployer Plan. Any multiemployer plan within the meaning of §3(37) of ERISA
maintained or contributed to by the Borrower or the Trust, as the case may be, or any ERISA
Affiliate.

950 F Street Investment. The minority investment described in Schedule 3.

Net Operating Income. For any period, an amount equal to (i) the aggregate rental and
other income from the operation of the applicable Real Estate Assets during such period;
minus (ii) all expenses and other proper charges incurred in connection with the operation
of such Real Estate Assets (including, without limitation, real estate taxes, management fees (or
Overhead Allocation, as applicable), payments under ground leases and bad debt expenses) during
such period; but, in any case, before payment of or provision for debt service charges for such
period, income taxes for such period, capital expenses for such period, and depreciation,
amortization, and other non-cash expenses for such period, all as determined in accordance with
GAAP (except that any rent leveling adjustments shall be excluded from rental income).

New Debt. Indebtedness secured by ownership or partnership interests in Real Estate
Assets incurred by the Borrower after the date hereof pursuant to §9.1(f) that is not fully
supported by one or more unencumbered Real Estate Assets (not including the Eligible Unencumbered
Properties under (and as defined in) the Unsecured Revolver Agreement), and for the avoidance of
doubt, neither the 2007 Term Loan or the 2008 Term Loan nor any refinancing thereof on
substantially the same structure and collateral therefor shall constitute New Debt, unless the 2007
Term Loan or 2008 Term Loan is increased above the principal amount thereof on the date hereof.

New Property Diligence Documents. See §8.13(a)(i).

Note Record. A Record with respect to any Note.

Notes. Collectively, the separate promissory notes of the Borrower in favor of each
Lender in substantially the form of Exhibit A hereto, in an aggregate principal amount
equal to the Total Commitment in effect from time to time, dated as of the date hereof or as of
such later date as any Person becomes a Lender under this Agreement, and completed with appropriate
insertions, as each of such notes may be amended, replaced, substituted and/or restated from time
to time.

 

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Obligations. All indebtedness, obligations and liabilities of the Trust, the Borrower
and the Subsidiary Guarantors to any of the Lenders or the Agent, individually or collectively (but
without double-counting), under this Agreement and each of the other Loan Documents and in respect
of any of the Term Loan, the Notes and the Security Documents and other instruments at any time
evidencing any thereof, whether existing on the date of this Agreement or arising or incurred
hereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured,
liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or
otherwise, and including any indebtedness, obligations and liabilities of the Borrower and the
Subsidiary Guarantors under any Protected Interest Rate Agreement entered into with any Lender,
provided that such Protected Interest Rate Agreement is for the purpose of hedging interest exposure under
this Agreement.

Organizational Documents. Collectively, (i) the Agreement of Limited Partnership of
FPLP, (ii) the Certificate of Limited Partnership of FPLP, (iii) the Amended and Restated
Declaration of Trust of the Trust, (iv) the Amended and Restated By-Laws of the Trust, (v) all of
the partnership agreements, corporate charters and by-laws, limited liability company operating
agreements, joint venture agreements or similar agreements, charter documents and certificates or
other agreements relating to the formation, organization or governance of the Borrower and each
Subsidiary Guarantor, and (vi) with respect to FP Redland Tech, the Tech LP Agreement and the
certificate of limited partnership of FP Redland Tech, in each case as any of the foregoing may be
amended in accordance with §8.20.

Overhead Allocation. For any period, the amount of corporate overhead included as a
property operating expense in lieu of a management fee.

Partially-Owned Entity(ies). Any of the partnerships, associations, corporations,
limited liability companies, trusts, joint ventures or other business entities or Persons in which
the Borrower or the Trust, directly, or indirectly through its full or partial ownership of another
entity, own an equity interest, but which is not required in accordance with GAAP to be
consolidated with the Borrower or the Trust for financial reporting purposes.

PBGC. The Pension Benefit Guaranty Corporation created by §4002 of ERISA and any
successor entity or entities having similar responsibilities.

Permits. All governmental permits, licenses, and approvals necessary for the lawful
operation and maintenance of the Real Estate Assets.

Permitted Liens. Liens permitted by §9.2.

Permitted Property. A property which is an income producing office, industrial or a
so-called flex property and is located in the States of Maryland or West Virginia or the
Commonwealth of Virginia.

Perseus. Perseus Redland Investments LLC, a Delaware limited liability company, and
its successors and assigns under the Tech LP Agreement.

 

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Person. Any individual, corporation, general partnership, limited partnership, trust,
limited liability company, limited liability partnership, unincorporated association, business, or
other legal entity, and any government (or any governmental agency or political subdivision
thereof).

Pledged Entity (ies). Collectively, the direct or indirect Subsidiaries of the
Borrower whose Equity Interests become Pledged Equity Interests.

Pledged Equity Interests. Collectively, one hundred percent (100%) of the legal,
equitable and beneficial ownership interests owned by the Borrower or any Subsidiary Guarantor in
any Subsidiary Guarantor that is a direct or indirect owner of an Eligible Borrowing Base Property,
including, in any event, 100% of the legal, equitable and beneficial ownership interests owned by
the Borrower or any Subsidiary Guarantor in FP Redland Tech (including, without limitation, the FP
Redland Tech Equity Interests).

Pledged Properties. Collectively, the Eligible Borrowing Base Properties directly or
indirectly owned by the Pledged Equity Entities.

Potomac Group. Collectively, (i) FPLP, (ii) the Trust, (iii) the respective
Subsidiaries of FPLP and the Trust, and (iv) the Partially-Owned Entities.

Purchase and Sale Agreement. See definition of Purchase Transaction Documents.

Purchase Transaction. The purchase by the Borrower or its Wholly-owned Subsidiaries
of the FP Redland Tech Equity Interests pursuant to the Purchase Transaction Documents (and
including the consummation of the Merger).

Purchase Transaction Documents. Collectively, (i) the Purchase and Sale Agreement
dated as of October 26, 2010, among U.S. Property Fund III GMBH & Co. KG, Perseus and the Borrower
(the “Purchase and Sale Agreement”), (ii) the Amended and Restated Limited Partnership Agreement,
dated November 10, 2010, among FP Redland Tech, Perseus, FP Redland GP, LLC and FP Redland, LLC
(the “Tech LP Agreement”), (iii) the Agreement and Plan of Merger, dated as of November 10, 2010,
by and between USPF III Redland Technology Center LP, a Delaware limited partnership, and USPF III
RTC GP LLC, a Delaware limited liability company and (iv) each of the other documents, agreements
and instruments entered into in connection with such Purchase and Sale Agreement, the Tech LP
Agreement or such Agreement and Plan of Merger.

Preferred Equity. Any preferred stock, preferred partnership interests, preferred
member interests or other preferred equity interests issued by the Borrower, the Trust or any of
their respective Subsidiaries.

 

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Protected Interest Rate Agreement. An agreement which evidences the interest
protection arrangements required by §8.15, and all extensions, renewals, modifications, amendments,
substitutions and replacements thereof.

RCRA. See §7.18.

Real Estate Assets. The fixed and tangible properties consisting of Land and/or
Buildings owned by the Borrower or any of its Subsidiaries at the relevant time of reference
thereto, including, without limitation, the Eligible Borrowing Base Properties at such time of
reference.

Real Estate Assets Under Development. Any Real Estate Assets for which the Borrower
or any of its Subsidiaries is actively pursuing construction of one or more Buildings or other
improvements and for which construction is proceeding to completion without undue delay from Permit
denial, construction delays or otherwise, all pursuant to such Person’s ordinary course of
business, provided that any such Real Estate Asset (or, if applicable, any Building comprising a
portion of any such Real Estate Asset) will no longer be considered a Real Estate Asset Under
Development on the date upon which a certificate of occupancy has issued for such Real Estate Asset
(or Building) or such Real Estate Asset (or Building) may otherwise be lawfully occupied for its
intended use.

Record. The grid attached to any Note, or the continuation of such grid, or any other
similar record, including computer records, maintained by any Lender with respect to any Loan.

Recourse. With reference to any obligation or liability, any liability or obligation
that is not Without Recourse to the obligor thereunder, directly or indirectly. For purposes
hereof, a Person shall not be deemed to be “indirectly” liable for the liabilities or obligations
of an obligor solely by reason of the fact that such Person has an ownership interest in such
obligor, provided that such Person is not otherwise legally liable, directly or indirectly,
for such obligor’s liabilities or obligations (e.g., without limitation, by reason of a guaranty or
contribution obligation, by operation of law or by reason of such Person being a general partner of
such obligor).

Redlands Property. The Real Property commonly referred to as the Redlands in
Rockville, Maryland that is the subject of the Purchase Transaction Documents.

REIT. A “real estate investment trust”, as such term is defined in Section 856 of the
Code.

Related Parties. With respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

 

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Release. See §7.18(c)(iii).

Reserve Percentage. The maximum aggregate reserve requirement (including all basic,
supplemental, marginal and other reserves) which is imposed on member banks of
the Federal Reserve System against “Euro-currency Liabilities” as defined in Regulation D.

SARA. See §7.18.

SEC. The Securities and Exchange Commission, or any successor thereto.

SEC Filings. Collectively, (i) each Form 10-K, 10-Q and Form 8-K filed by the Trust
with the SEC from time to time and (ii) each of the other public forms and reports filed by the
Trust with the SEC from time to time.

Security Documents. Collectively, (i) the Equity Pledge Agreement, (ii) any Account
Agreement entered into from time to time, (iii) any UCC-1 financing statement relating to the
Collateral, and (iv) each other document, agreement or instrument that at any time evidences the
Collateral.

Subsidiary. Any corporation, association, partnership, limited liability company,
trust, joint venture or other business entity or Person which is required to be consolidated with
the Borrower or the Trust in accordance with GAAP.

Subsidiary Guarantors. (i) With respect to the Redlands Property, FP Redland, LLC, a
Delaware limited liability company, and FP Redland GP, LLC, a Delaware limited liability company,
and (ii) with respect to each other Eligible Borrowing Base Property, each of the direct and
indirect Subsidiaries of the Borrower which either directly or indirectly owns such Eligible
Borrowing Base Property or which has entered into a Subsidiary Guaranty or any Security Document,
as applicable. All of the Subsidiary Guarantors as of the Closing Date are set forth on
Schedule 1.

Subsidiary Guaranty. Collectively, the one or more Subsidiary Guaranties made by
certain Subsidiary Guarantors, on a joint and several basis, in favor of the Agent and the Lenders
pursuant to which the Subsidiary Guarantors guarantee to the Agent and the Lenders the
unconditional payment and performance of the Obligations, as the same may be modified, amended,
restated or reaffirmed from time to time.

2007 Term Loan. The Term Loan made pursuant to the Existing Term Loan Agreement.

2008 Term Loan. The Term Loan made pursuant to the 2008 Term Loan Agreement.

 

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2008 Term Loan Agreement. The Secured Term Loan Agreement dated as of August 11, 2008,
among the Borrower and certain of its subsidiaries, KeyBank National Association, individually and
as administrative agent and certain other lenders, as the same may be modified, increased, amended
or restated from time to time.

Tech LP Agreement. See definition of Purchase Transaction Documents.

Term Loan. The term loan made by the Lenders to the Borrower on the Closing Date
pursuant to §2.

Total Commitment. As of any date, the sum of the then current Commitments of the
Lenders. As of the Closing Date, the Total Commitment is $50,000,000.

Trust. See preamble.

Trust Guaranty. The Guaranty, dated as of the date hereof, made by the Trust in favor
of the Agent and the Lenders pursuant to which the Trust guarantees to the Agent and the Lenders
the unconditional payment and performance of the Obligations, as the same may be modified, amended,
restated or reaffirmed from time to time.

Type. As to any portion of the Term Loan, its nature as a Base Rate Loan or a Libor
Rate Loan.

Unanimous Lender Approval. The written consent of each Lender that is a party to this
Agreement at the time of reference.

Unencumbered Land. The Real Estate Asset commonly referred to as the Sterling Park
Land Parcel, so long as such Real Estate Asset is not subject to any Liens, except for Permitted
Liens under the Unsecured Revolver Agreement.

Unencumbered Pool. Has the meaning set forth therefor in the Unsecured Revolver
Agreement.

Unencumbered Pool Capital Reserve. Has the meaning set forth therefor in the Unsecured
Revolver Agreement.

Unsecured Revolver. The up to $275,000,000 revolving credit facility pursuant to the
Unsecured Revolver Agreement, as the same may be modified, increased, amended or restated from time
to time.

Unsecured Revolver Agreement. The Second Amended and Restated Revolving Credit
Agreement dated as of December 29, 2009, among the Borrower and certain of its Subsidiaries,
KeyBank National Association, individually and as administrative agent and certain other lenders,
as the same may be modified, increased, amended or restated from time to time.

 

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Unsecured Consolidated Total Indebtedness. As of any date of determination, the
aggregate principal amount of Consolidated Total Indebtedness outstanding at such date
(including all Obligations), that is not secured by a Lien evidenced by a mortgage, deed of trust,
negative pledge, assignment of partnership interests or other security interest or otherwise.

Unsecured Interest Expense. For any period of determination, Consolidated Total
Interest Expense for such period attributable to the Unsecured Consolidated Total Indebtedness of
the Borrower, the Trust and their respective Subsidiaries.

Value of Unencumbered Properties. At any date of determination, an amount equal to
the sum of (i) (x) the Net Operating Income for the most recent fiscal quarter of the Eligible
Unencumbered Properties owned by the Borrower for at least two complete fiscal quarters, less the
Management Fee Adjustment relating to such Eligible Unencumbered Properties, with the sum thereof
multiplied by (y) 4; with the product thereof being divided by (z)
the Capitalization Rate, plus (ii) an amount equal to the Cost Basis Value of any Eligible
Unencumbered Property not owned for two complete fiscal quarters, plus (iii) an amount
equal to the Cost Basis Value of the Eligible Unencumbered Properties that are Real Estate Assets
under Development, plus (iv) an amount equal to the Cost Basis Value of the Unencumbered Land,
provided that (a) the Net Operating Income attributable to any Eligible Unencumbered
Property sold or otherwise transferred during the applicable period shall be excluded from the
calculation of the Value of Unencumbered Properties, (b) the Net Operating Income of Eligible
Unencumbered Properties included at their Cost Basis Value shall be excluded and (c) the value
included as a result of clause (iii) above shall not exceed ten percent (10%) of the aggregate
Value of Unencumbered Properties at any time.

Wholly-owned Subsidiary. Any single purpose entity which is a Subsidiary of FPLP and
of which FPLP at all times owns directly or indirectly (through a Subsidiary or Subsidiaries) 100%
of the outstanding voting or controlling interests and of the economic interests, as a result of
which FPLP, directly or indirectly (through a Subsidiary or Subsidiaries) has total control over
all decisions regarding such Subsidiary.

“Without Recourse” or “without recourse”. With reference to any obligation or
liability, any obligation or liability for which the obligor thereunder is not liable or obligated
other than as to its interest in a designated Real Estate Asset or other specifically identified
asset only, subject to such limited exceptions to the non-recourse nature of such obligation or
liability, such as fraud, misappropriation and misapplication indemnities, as are usual and
customary in like transactions involving institutional lenders at the time of the incurrence of
such obligation or liability, and to usual and customary environmental indemnification obligations
in connection with such designated Real Estate Asset.

 

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§1.2. Rules of Interpretation.

(i) A reference to any document or agreement shall include such document or
agreement as amended, modified or supplemented from time to time in accordance with
its terms or the terms of this Agreement.

(ii) The singular includes the plural and the plural includes the singular.

(iii) A reference to any law includes any amendment or modification to such law.

(iv) A reference to any Person includes its permitted successors and permitted
assigns.

(v) Accounting terms not otherwise defined herein have the meanings assigned to
them by generally accepted accounting principles applied on a consistent basis by the
accounting entity to which they refer.

(vi) The words “include”, “includes” and “including” are not limiting.

(vii) All terms not specifically defined herein or by generally accepted
accounting principles, which terms are defined in the Uniform Commercial Code as in
effect in New York, have the meanings assigned to them therein.

(viii) Reference to a particular “§” refers to that section of this Agreement
unless otherwise indicated.

(ix) The words “herein”, “hereof”, “hereunder” and words of like import shall
refer to this Agreement as a whole and not to any particular section or subdivision
of this Agreement.

§2. THE TERM LOAN.

§2.1 Commitment to Lend. Subject to the provisions of §2.4, §12 and the other terms
and conditions set forth in this Agreement, each of the Lenders severally agrees to make a term
loan to the Borrower on the Closing Date in an aggregate principal amount equal to such Lender’s
Commitment Percentage of the Total Commitment. The outstanding amount of the Term Loan shall not
at any time exceed the Total Commitment. In no event shall any Lender be required to fund any
amounts in excess of its then-current Commitment.

 

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The Term Loan shall be made pro rata in accordance with each Lender’s
Commitment Percentage. The request for the Term Loan shall constitute a representation and
warranty by the Borrower that the conditions set forth in §12 have been satisfied as of the Closing
Date, provided that the making of such representation and warranty by the Borrower shall
not limit the right of any Lender not to lend if such conditions have not been met. No portion of
the Term Loan or other extension of credit shall be required to be made by any Lender unless all of
the conditions contained in §12 have been satisfied as of the Closing Date.

§2.2. The Notes. The Term Loan shall be evidenced by the Notes. A Note shall be
payable to the order of each Lender in an aggregate principal amount equal to such Lender’s
Commitment. The Borrower irrevocably authorizes each Lender to make or cause to be made an
appropriate notation on such Lender’s applicable Note Record reflecting the making of its portion
of the Term Loan or (as the case may be) the receipt of any payment thereon. The outstanding
amount of the Term Loan set forth on such applicable Note Record shall be prima
facie evidence of the principal amount thereof owing and unpaid to such Lender, but the
failure to record, or any error in so recording, any such amount on such Note Record shall not
limit or otherwise affect the rights and obligations of the Borrower hereunder or under any Note to
make payments of principal of or interest on any Note when due.

§2.3. Interest on the Term Loan; Fees.

(a) Each Base Rate Loan shall bear interest for the period commencing with the Drawdown Date
thereof and ending on the last day of each Interest Period with respect thereto (unless earlier
paid in accordance with §3.2) at a rate equal to the Base Rate plus the Applicable Base
Rate Margin.

(b) Each Libor Rate Loan shall bear interest for the period commencing with the Drawdown Date
thereof and ending on the last day of each Interest Period with respect thereto (unless earlier
paid in accordance with §3.2) at a rate equal to the Libor Rate determined for such Interest Period
plus the Applicable Libor Margin.

(c) With reference to Base Rate Loans, the “Applicable Base Rate Margin” shall be equal to
2.25% and, with reference to Libor Rate Loans, the “Applicable Libor Margin” shall be equal to
3.50%.

(d) The Borrower unconditionally promises to pay interest on the Term Loan in arrears on each
Interest Payment Date with respect thereto, and when the principal of such Term Loan is due
(whether at maturity, by reason of acceleration or otherwise).

 

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§2.4. Request for the Term Loan.

The following provisions shall apply to the initial request by the Borrower for the Term Loan:

(i) The Borrower shall submit a Completed Loan Request to the Agent. The
Completed Loan Request shall be irrevocable and binding on the Borrower and shall
obligate the Borrower to accept the Term Loan requested from the Lenders on the
Closing Date.

(ii) The Completed Loan Request shall specify: (1) the principal amount of the
Term Loan, (2) the Interest Period applicable to such Term Loan (or portions
thereof), and (3) the Type of Loan being requested, and certifying that, after
giving effect to such requested Term Loan, no Default or Event of Default will
exist under this Agreement or any other Loan Document and that, after giving effect
to the Term Loan, the Borrower is in compliance with the covenants set forth in §10
(which calculations required by such covenants shall be submitted with such
Completed Loan Request).

(iii) No Lender shall be obligated to fund any portion of the Term Loan
unless:

(a) a Completed Loan Request has been timely received by the Agent as
provided in subsection (i) above; and

(b) both before and after giving effect to the Term Loan to be made
pursuant to the Completed Loan Request, all of the conditions contained in
§12 shall have been satisfied as of the Closing Date.

§2.5. Conversion Options.

(a) The Borrower may elect from time to time to convert any portion of the outstanding Term
Loan to another Type, provided that (i) subject to the further proviso at the end of this
§2.5(a) and subject to §2.5(b) and §2.5(d), with respect to any conversion of a Base Rate Loan to a
Libor Rate Loan (or a continuation of a Libor Rate Loan, as provided in §2.5(b)), the Borrower
shall give the Agent at least three (3) Business Days’ prior written notice of such election, which
such notice must be received by the Agent by 10:00 a.m. on any Business Day; and (ii) no Loan may
be converted into a Libor Rate Loan when any Default or Event of Default has occurred and is
continuing. All or any part of the outstanding Term Loan of any Type may be converted as provided
herein, provided that each Conversion Request relating to the conversion of a Base Rate
Loan to a Libor Rate Loan shall be for an amount equal to $1,000,000 or an integral multiple of
$100,000 in excess thereof and shall be irrevocable by the Borrower.

 

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(b) Any portion of the Term Loan of any Type may be continued as such upon the expiration of
the Interest Period with respect thereto (i) in the case of Base Rate Loans, automatically and (ii)
in the case of Libor Rate Loans by compliance by the Borrower with the notice provisions contained
in §2.5(a)(i); provided that no Libor Rate Loan may be continued as such when any Default
or Event of Default has occurred and is continuing but shall be automatically converted to a Base
Rate Loan on the last day of the first Interest Period relating thereto ending during the
continuance of any Default or Event of Default. The Borrower shall notify the Agent promptly when
any such automatic conversion contemplated by this §2.5(b) is scheduled to occur.

(c) In the event that the Borrower does not notify the Agent of its election hereunder with
respect to any portion of the Term Loan in accordance with the terms hereof, such portion of the
Term Loan shall be automatically converted to a Base Rate Loan at the end of the applicable
Interest Period.

(d) The Borrower may not request or elect a Libor Rate Loan pursuant to §2.4, elect to convert
a Base Rate Loan to a Libor Rate Loan pursuant to §2.5(a) or elect to continue a Libor Rate Loan
pursuant to §2.5(b) if, after giving effect thereto, there would be greater than five (5) Libor
Rate Loans then outstanding. Any Loan Request or Conversion Request for a Libor Rate Loan that
would create greater than five (5) Libor Rate Loans outstanding shall be deemed to be a Loan
Request or Conversion Request for a Base Rate Loan. By way of explanation of the foregoing, in the
event that the Borrower wishes to convert or continue two or more portions of the Term Loan into
one Libor Rate Loan on the same day and for identical Interest Periods, such Libor Rate Loan shall
constitute one single Libor Rate Loan for purposes of this clause (d).

(e) The Agent will promptly notify each Lender of any Conversion Request received pursuant to
§2.5(a) or continuation pursuant to §2.5(b) in accordance with its customary practices.

§2.6. [Reserved].

§2.7. [Reserved].

§2.8. [Reserved].

 

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§2.9. Extension of Term Loan Maturity Date. At least 30 days but in no event more
than 80 days prior to February 10, 2011, the Borrower, by written notice to the Agent, may request
an extension of the Maturity Date by a period of three (3) months from the Maturity Date then in
effect (the “Extension”). The Extension shall become effective on February 10, 2011 so long as (i)
the Borrower has not repaid the Term Loan in full on or prior to the Maturity Date, (ii) the Borrower has paid to the Agent on such
date, for the ratable accounts of the Lenders, an extension fee in an amount equal to 15 basis
points on the Total Commitment in effect on such date, and (iii) no Default or Event of Default has
occurred and is continuing on such date and all representations and warranties contained in the
Loan Documents are true and correct in all material respects as of such date (except to the extent
that such representations and warranties relate expressly to an earlier date). The notice referred
to in the first sentence of this §2.9 shall constitute and shall be deemed to be a certification by
the Borrower as to the truth and accuracy of the statements contained in clause (ii) of the
preceding sentence. In addition, the Borrower shall deliver to the Agent a Certificate of
Compliance certifying compliance with the covenants set forth in §10 as of the date of such
Extension.

§3. REPAYMENT OF THE TERM LOAN.

§3.1. Maturity. The Borrower promises to pay on the Maturity Date, and there shall
become absolutely due and payable on the Maturity Date, all unpaid principal of the Term Loan
outstanding on such date, together with any and all accrued and unpaid interest thereon and any and
all other unpaid amounts due under this Agreement, the Notes or any other of the Loan Documents.

§3.2. Optional Repayments of the Term Loan. The Borrower shall have the right, at its
election, to prepay the outstanding amount of the Term Loan, in whole or in part, at any time
without penalty or premium; provided that the outstanding amount of any Libor Rate Loans
may not be prepaid on a date other than the last day of an Interest Period unless the Borrower pays
the Libor Breakage Costs for each Libor Rate Loan so prepaid at the time of such prepayment. The
Borrower shall give the Agent (with copies to the Agent for each Lender), no later than 10:00 a.m.,
Cleveland, Ohio time, at least two (2) Business Days’ prior written notice of any prepayment
pursuant to this §3.2 of any Base Rate Loans, and at least four (4) Business Days’ notice of any
proposed prepayment pursuant to this §3.2 of Libor Rate Loans, specifying the proposed date of
prepayment and the principal amount to be prepaid. Each such partial prepayment of the Term Loan
shall be in an amount equal to $1,000,000 or an integral multiple of $1,000,000 in excess thereof,
shall be accompanied by the payment of all charges, if any, outstanding on the Term Loan so prepaid
and of all accrued interest on the principal prepaid to the date of payment, and shall be applied,
in the absence of instruction by the Borrower, first to the principal of Base Rate Loans and then
to the principal of Libor Rate Loans.

§3.3. [Reserved.].

 

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§4. CERTAIN GENERAL PROVISIONS.

§4.1. Funds for Payments.

(a) All payments of principal, interest, fees, and any other amounts due hereunder or under
any of the other Loan Documents shall be made to the Agent, for the respective accounts of the
Lenders or (as the case may be) the Agent, at the Agent’s Head Office, in each case in Dollars and
in immediately available funds. The Borrower shall make each payment of principal of and interest
on the Term Loan and of fees hereunder not later than 12:00 p.m. (Cleveland, Ohio time) on the due
date thereof.

(b) All payments by the Borrower hereunder and under any of the other Loan Documents shall be
made without setoff or counterclaim and free and clear of and without deduction for any taxes,
levies, imposts, duties, charges, fees, deductions, withholdings, compulsory liens, restrictions or
conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political
subdivision thereof or taxing or other authority therein unless the Borrower is compelled by law to
make such deduction or withholding. If the Borrower is compelled by law to make any such deduction
or withholding with respect to any amount payable by it hereunder or under any of the other Loan
Documents (except with respect to taxes on the income or profits of the Agent or any Lender), the
Borrower shall pay to the Agent, for the account of the Lenders or (as the case may be) the Agent,
on the date on which such amount is due and payable hereunder or under such other Loan Document,
such additional amount in Dollars as shall be necessary to enable the Lenders to receive the same
net amount which the Lenders would have received on such due date had no such deduction or
withholding obligation been imposed upon the Borrower. The Borrower will deliver promptly to the
Agent (with copies to the Agent for each Lender) certificates or other valid vouchers for all taxes
or other charges deducted from or paid with respect to payments made by the Borrower hereunder or
under such other Loan Document.

§4.2. Computations. All computations of interest on Libor Rate Loans and of other
fees to the extent applicable shall be based on a 360-day year and all computations of interest on
Base Rate Loans shall be based on a 365/366 day year, in each case paid for the actual number of
days elapsed. Except as otherwise provided in the definition of the term “Interest Period” with
respect to Libor Rate Loans, whenever a payment hereunder or under any of the other Loan Documents
becomes due on a day that is not a Business Day, the due date for such payment shall be extended to
the next succeeding Business Day, and interest shall accrue during such extension. The outstanding
amount of the Loans as reflected on the Note Records or record attached to any other Note from time
to time shall constitute prima facie evidence of the principal amount thereof.

 

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§4.3. Inability to Determine Libor Rate. In the event, prior to the commencement of
any Interest Period relating to any Libor Rate Loan, the Agent shall determine that adequate and
reasonable methods do not exist for ascertaining the Libor
Rate that would otherwise determine the rate of interest to be applicable to any Libor Rate Loan
during any Interest Period, the Agent shall forthwith give notice of such determination (which
shall be conclusive and binding on the Borrower) to the Borrower and the Lenders. In such event
(a) any Conversion Request with respect to Libor Rate Loans shall be automatically withdrawn and
shall be deemed a request for Base Rate Loans, (b) each Libor Rate Loan will automatically, on the
last day of the then current Interest Period applicable thereto, become a Base Rate Loan, and (c)
the obligations of the Lenders to make Libor Rate Loans shall be suspended, in each case unless and
until the Agent determines that the circumstances giving rise to such suspension no longer exist,
whereupon the Agent shall so notify the Borrower and the Lenders.

§4.4. Illegality. Notwithstanding any other provisions herein, if any present or
future law, regulation, treaty or directive or in the interpretation or application thereof shall
make it unlawful for any Lender to make or maintain Libor Rate Loans, such Lender shall forthwith
give notice of such circumstances to the Agent and the Borrower and thereupon (a) the obligation of
such Lender to make Libor Rate Loans or convert Base Rate Loans to Libor Rate Loans shall forthwith
be suspended and (b) such Lender’s Commitment Percentage of Libor Rate Loans then outstanding shall
be converted automatically to Base Rate Loans on the last day of each Interest Period applicable to
such Libor Rate Loans or within such earlier period as may be required by law, all until such time
as it is no longer unlawful for such Lender to make or maintain Libor Rate Loans. The Borrower
hereby agrees promptly to pay the Agent for the account of such Lender, upon demand, any additional
amounts necessary to compensate such Lender for Libor Breakage Costs incurred by such Lender in
making any conversion required by this §4.4 prior to the last day of an Interest Period.

§4.5. Additional Costs, Etc. If any present or future applicable law, which
expression, as used herein, includes statutes, rules and regulations thereunder and interpretations
thereof by any competent court or by any governmental or other regulatory body or official charged
with the administration or the interpretation thereof and requests, directives, instructions and
notices at any time or from time to time hereafter made upon or otherwise issued to any Lender or
the Agent by any central bank or other fiscal, monetary or other authority (whether or not having
the force of law, but if not having the force of law, then generally applied by the Lenders or the
Agent with respect to similar loans), shall:

(a) subject any Lender or the Agent to any tax, levy, impost, duty, charge, fee, deduction or
withholding of any nature with respect to this Agreement, the other Loan Documents, such Lender’s
Commitment or the Loans (other than taxes based upon or measured by the income or profits of such
Lender or the Agent), or

(b) change the basis of taxation (except for changes in taxes on income or profits) of
payments to any Lender of the principal of or the interest on the Term Loan
or any other amounts payable to the Agent or any Lender under this Agreement or the other Loan
Documents, or

 

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(c) impose or increase or render applicable (other than to the extent specifically provided
for elsewhere in this Agreement) any special deposit, reserve, assessment, liquidity, capital
adequacy or other similar requirements (whether or not having the force of law) against assets held
by, or deposits in or for the account of, or loans by, or letters of credit issued by, or
commitments of an office of any Lender, or

(d) impose on any Lender or the Agent any other conditions or requirements with respect to
this Agreement, the other Loan Documents, the Loans, such Lender’s Commitment, or any class of
loans or commitments of which any of the Loans or such Lender’s Commitment forms a part;

and the result of any of the foregoing is

(i) to increase the cost to any Lender of making, funding, issuing, renewing,
extending or maintaining any of the Loans or such Lender’s Commitment, or

(ii) to reduce the amount of principal, interest or other amount payable to
such Lender or the Agent hereunder on account of such Lender’s Commitment or any of
the Loans, or

(iii) to require such Lender or the Agent to make any payment or to forego any
interest or other sum payable hereunder, the amount of which payment or foregone
interest or other sum is calculated by reference to the gross amount of any sum
receivable or deemed received by such Lender or the Agent from the Borrower
hereunder,

then, and in each such case, the Borrower will, upon demand made by the Agent or such Lender (such
demand to be made promptly by the Agent or such Lender upon the making of any such determination),
at any time and from time to time and as often as the occasion therefor may arise, pay to such
Lender or the Agent such additional amounts as such Lender or the Agent shall determine in good
faith to be sufficient to compensate such Lender or the Agent for such additional cost, reduction,
payment or foregone interest or other sum, provided that such Lender or the Agent is
generally imposing similar charges on its other similarly situated borrowers. The Agent shall
provide the Borrower with a calculation, in reasonable detail, of such amounts in accordance with
its customary practices.

 

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§4.6. Capital Adequacy. If any future law, governmental rule, regulation, policy,
guideline or directive (whether or not having the force of law, but if not having the force of law,
then generally applied by the Lenders with respect to similar loans) or the
interpretation thereof by a court or governmental authority with appropriate jurisdiction affects
the amount of capital required or expected to be maintained by banks or bank holding companies and
any Lender or the Agent determines that the amount of capital required to be maintained by it is
increased by or based upon the existence of Loans made or deemed to be made pursuant hereto, then
such Lender or the Agent may notify the Borrower of such fact, and the Borrower shall pay to such
Lender or the Agent from time to time, upon demand made by the Agent or such Lender (such demand to
be made promptly by the Agent or such Lender upon the making of any such determination), as an
additional fee payable hereunder, such amount as such Lender or the Agent shall determine
reasonably and in good faith and certify in a notice to the Borrower to be an amount that will
adequately compensate such Lender in light of these circumstances for its increased costs of
maintaining such capital. Each Lender and the Agent shall allocate such cost increases among its
customers in good faith and on an equitable basis, and will not charge the Borrower unless it is
generally imposing a similar charge on its other similarly situated borrowers. The Agent shall
provide the Borrower with a calculation, in reasonable detail, of such amounts in accordance with
its customary practices.

§4.7. Certificate; Limitations. A certificate setting forth any additional amounts
payable pursuant to §§4.5 or 4.6 and a brief explanation of such amounts which are due, submitted
by any Lender or the Agent to the Borrower, shall be prima facie evidence that such
amounts are due and owing. Notwithstanding anything to the contrary contained in this Article 4,
to the extent reasonably possible, each Lender shall designate an alternate lending office in the
continental United States to make the Loans in order to reduce any liability of Borrower to such
Lender under §§4.4, 4.5 or 4.6 or to avoid the unavailability of a Libor Rate Loan, so long as such
designation is not disadvantageous to such Lender.

§4.8. Indemnity. In addition to the other provisions of this Agreement regarding such
matters, the Borrower agrees to indemnify the Agent and each Lender and to hold the Agent and each
Lender harmless from and against any loss, cost or expense (including loss of anticipated profits)
that the Agent or such Lender may sustain or incur as a consequence of (a) a default by the
Borrower in the payment of any principal amount of or any interest on any Libor Rate Loans as and
when due and payable, including any such loss or expense arising from interest or fees payable by
the Agent or such Lender to lenders of funds obtained by it in order to maintain its Libor Rate
Loans, (b) the failure by the Borrower to make a borrowing or conversion after the Borrower has
given the Completed Loan Request for a Libor Rate Loan or a Conversion Request for a Libor Rate
Loan, and (c) the making of any payment of a Libor Rate Loan or the making of any conversion of any
such Loan to a Base Rate Loan on a day that is not the last day of the applicable Interest Period
with respect thereto, including interest or fees payable by the Agent or a Lender to lenders of
funds obtained by it in order to maintain any such Libor Rate Loans.

 

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§4.9. Interest on Overdue Amounts; Late Charge. Notwithstanding anything to the
contrary stated herein, upon the occurrence and during the continuance of an Event of
Default, at the option of the Majority Lenders, to the extent permitted by applicable law, the
unpaid balance of all Obligations shall bear interest at the rate otherwise applicable thereto
plus 2%, compounded daily until such Event of Default is cured or waived to the
satisfaction of the Agent and the required Lenders. In addition, the Borrower shall pay a late
charge equal to five percent (5%) of any amount of interest charges on the Term Loan which is not
paid within ten (10) days of the date when due.

§5. COLLATERAL

§5.1. Security Interests. The Obligations shall be secured by (i) a perfected
first-priority lien on, or security title and security interest to be held by the Agent for the
benefit of the Lenders in, the Collateral, which Collateral shall include the Pledged Equity
Interests, and (ii) such additional collateral, if any, as the Agent, for the benefit of the
Lenders from time to time may accept as security for the Obligations. The Obligations shall also
be guaranteed pursuant to the terms of the Trust Guaranty and the Subsidiary Guaranties.

§6. RECOURSE OBLIGATIONS; JOINT AND SEVERAL LIABILITY. The Obligations are full
recourse obligations of the Borrower, and all of the respective assets and properties of the
Borrower shall be available for the payment in full in cash and performance of the Obligations.
The obligations of the Trust under the Trust Guaranty are full recourse obligations of the Trust,
and all of the respective assets and properties of the Trust shall be available for the payment in
full in cash and performance thereof. The obligations of the Subsidiary Guarantors under the
Subsidiary Guaranty are full recourse obligations of the Subsidiary Guarantors, and all of the
respective assets and properties of the Subsidiary Guarantors shall be available for the payment
and performance thereof. The liability of the Borrower and each Subsidiary Guarantor shall be
joint and several for all Obligations.

§7. REPRESENTATIONS AND WARRANTIES. The Borrower and the Trust, on their own behalf
and on behalf of their respective Subsidiaries, jointly and severally represent and warrant to the
Agent and the Lenders all of the statements contained in this §7.

 

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§7.1. Authority, Etc.

(a) Organization: Good Standing.

(i) FPLP is a limited partnership duly organized, validly existing
and in good standing under the laws of its state of organization; FPLP has
all requisite limited partnership power to own its properties and conduct
its business as now conducted and as presently contemplated; and FPLP is
in good standing as a foreign entity and is duly authorized to do business
in the jurisdictions where the Eligible Borrowing Base Properties owned by
it are located and in each other jurisdiction where such qualification is
necessary except where a failure to be so qualified would not have a
materially adverse effect on its business, operations, assets, condition
(financial or otherwise) or properties. Each Subsidiary Guarantor is a
limited partnership, general partnership, nominee trust or limited
liability company, as the case may be, duly organized, validly existing
and in good standing under the laws of its state of organization; each
such Subsidiary Guarantor has all requisite limited partnership, general
partnership, trust, limited liability company or corporate, as the case
may be, power to own its respective properties and conduct its respective
business as now conducted and as presently contemplated; and each such
Subsidiary Guarantor or other Subsidiary of the Borrower which is an owner
of an Eligible Borrowing Base Property is in good standing as a foreign
entity and is duly authorized to do business in the jurisdictions where
the Eligible Borrowing Base Properties owned by it are located and in each
other jurisdiction where such qualification is necessary except where a
failure to be so qualified in such other jurisdiction would not have a
materially adverse effect on the business, operations, assets, condition
(financial or otherwise) or properties of such Borrower.

(ii) the Trust is a corporation duly organized, validly existing and
in good standing under the laws of the State of Maryland; each Subsidiary
of the Trust is duly organized, validly existing and in good standing as a
corporation, nominee trust, limited liability company, limited partnership
or general partnership, as the case may be, under the laws of the state of
its organization; the Trust and each of its Subsidiaries has all requisite
corporate, trust, limited liability company, limited partnership or
general partnership, as the case may be, power to own its respective
properties and conduct its respective business as now conducted and as
presently contemplated; and the Trust is in good standing as a foreign
entity and is duly authorized to do business in the jurisdictions where
such qualification is necessary, except where a failure to be so qualified
in such other jurisdiction would not have a materially adverse effect on
the business, operations, assets, condition (financial or otherwise) or
properties of the Trust or any such Subsidiary.

 

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(b) Capitalization. The outstanding equity of FPLP is comprised of a general partner
interest and limited partner interests, all of which have been duly issued
and are outstanding and fully paid and non-assessable and, as of the Closing Date, are owned and
held of record by the Persons set forth on Schedule 7.1(b) attached hereto. All of the issued and
outstanding general partner interests of FPLP are owned and held of record by the Trust. There are
no outstanding securities or agreements exchangeable for or convertible into or carrying any rights
to acquire a general partner interest in FPLP. There are no outstanding commitments, options,
warrants, calls or other agreements (whether written or oral) binding on FPLP or the Trust which
require or could require FPLP or the Trust to sell, grant, transfer, assign, mortgage, pledge or
otherwise dispose of any general partner interest in FPLP. Except as set forth in the Agreement of
Limited Partnership of FPLP, no general partner interests of FPLP are subject to any restrictions
on transfer or any partner agreements, voting agreements, trust deeds, irrevocable proxies; or any
other similar agreements or interests (whether written or oral). FPLP owns, directly or
indirectly, 100% (by number of votes or controlling interests) of the outstanding voting interests
and of the economic interests in each Subsidiary Guarantor and the FP Redland Tech Equity
Interests. All of the issued and outstanding equity interests of each Subsidiary Guarantor and FP
Redland Tech are owned and held of record by the Persons set forth on Schedule 7.1(b) attached
hereto, and all of such equity interests held by the Borrower or a Subsidiary Guarantor have been
duly issued. There are no outstanding securities or agreements exchangeable for or convertible into
or carrying any rights to acquire any equity interests in any Subsidiary Guarantor or FP Redland
Tech. There are no outstanding commitments, options, warrants, calls or other agreements (whether
written or oral) binding on any Subsidiary Guarantor or any other Subsidiary of the Borrower which
owns an Eligible Borrowing Base Property which require or could require any Subsidiary Guarantor or
such Subsidiary to sell, grant, transfer, assign, mortgage, pledge or otherwise dispose of any
equity interest of such Subsidiary Guarantor or of FP Redland Tech. Except as disclosed on
Schedule 7.1(b) attached hereto, no equity interests of any Subsidiary Guarantor or FP Redland Tech
are subject to any restrictions on transfer or any partner agreements, voting agreements, trust
deeds, irrevocable proxies; or any other similar agreements or interests (whether written or oral)
and any such restrictions or other agreements relating to FPLP are as forth on Schedule 7.1(b).
All of the Preferred Equity which exists as of the Closing Date in respect of FP Redland Tech or
any Subsidiary Guarantor, and each of the agreements or other documents entered into and/or setting
forth the terms, rights and restrictions applicable to any such Preferred Equity, are listed and
described on Schedule 7.1(b) attached hereto. All of the agreements and other documents relating
to the Preferred Equity have been furnished to the Agent.

 

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(c) Due Authorization. The execution, delivery and performance of this Agreement and
the other Loan Documents to which the Borrower, any Subsidiary Guarantor or the Trust is or is to
become a party and the transactions contemplated hereby and thereby (i) are within the authority of
the Borrower, such Subsidiary Guarantor and the Trust, (ii) have been duly authorized by all
necessary proceedings on the part of the Borrower, such Subsidiary Guarantor or the Trust and any
general partner or manager thereof, (iii) do not conflict with or result in any breach or
contravention of any provision
of law, statute, rule or regulation to which the Borrower, such Subsidiary Guarantor or the Trust
is subject or any judgment, order, writ, injunction, license or permit applicable to the Borrower,
such Subsidiary Guarantor or the Trust, (iv) do not conflict with any provision of the
Organizational Documents of the Borrower, such Subsidiary Guarantor or the Trust or any general
partner or manager thereof, or with the Tech LP Agreement, (v) do not contravene any provisions of,
or constitute Default or Event of Default hereunder, and (vi) will not cause a failure to comply
with any term, condition or provision of, any other agreement, instrument, judgment, order, decree,
permit, license or undertaking binding upon or applicable to the Borrower, such Subsidiary
Guarantor, FP Redland Tech or the Trust or any of the Borrower’s, such Subsidiary Guarantor’s, FP
Redland Tech’s or the Trust’s properties (except for any such failure to comply under any such
other agreement, instrument, judgment, order, decree, permit, license, or undertaking as would not
materially and adversely affect the business, operations, assets, condition (financial or
otherwise) or properties of the Trust, FPLP or any other member of the Potomac Group) or result in
the creation of any mortgage, pledge, security interest, lien, encumbrance or charge upon any of
the properties or assets of the Borrower, such Subsidiary Guarantor, FP Redland Tech or the Trust.

(d) Enforceability. Each of the Loan Documents to which the Borrower, any Subsidiary
Guarantor or the Trust is a party has been duly executed and delivered and constitutes the legal,
valid and binding obligations of the Borrower, such Subsidiary Guarantor and the Trust, as the case
may be, subject only to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting generally the enforcement of creditors’ rights.

§7.2. Governmental Approvals. The execution, delivery and performance by the Borrower
of this Agreement and the other Loan Documents to which the Borrower or the Trust is or is to
become a party and the transactions contemplated hereby and thereby do not require (i) the approval
or consent of any governmental agency or authority other than those already obtained and delivered
to the Agent, or (ii) filing with any governmental agency or authority, other than filings which
will be made with the SEC when and as required by law or deemed appropriate by the Trust.

§7.3. Title to Properties; Leases.

The Borrower, each Subsidiary Guarantor and the Trust each has good fee to all of its
respective properties, assets and rights of every name and nature purported to be owned by it,
including, without limitation, that:

(a) The Borrower and/or each Subsidiary Guarantor (or with respect to the Redlands Property,
FP Redland Tech) holds good and clear record and marketable fee simple title to the Eligible
Borrowing Base Properties and all assets or properties relating thereto, subject to no Liens other
than Permitted Liens and, for a period not to exceed 30 days following the Closing Date, Liens
listed in Schedule 7.3(a).

 

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(b) The Borrower, the Subsidiary Guarantors and the Trust will, as of the Closing Date, own
all of the assets as reflected in the financial statements of the Borrower, the Subsidiary
Guarantors and the Trust described in §7.4, or acquired since the date of such financial statements
(except property and assets sold or otherwise disposed of in the ordinary course of business since
that date).

(c) Each of the direct or indirect interests of any Subsidiary Guarantor or FP Redland Tech in
any Partially-Owned Entity is set forth on Schedule 7.3(c) attached hereto, including the type of
entity in which the interest is held, the percentage interest owned by such Subsidiary Guarantor or
FP Redland Tech in such entity, the capacity in which such Subsidiary Guarantor or FP Redland Tech
holds the interest, and such Subsidiary Guarantor’s or FP Redland Tech’s ownership interest
therein.

§7.4. Financial Statements. The Borrower has furnished to each of the Lenders (i) the
audited consolidated balance sheet of the Trust and its Subsidiaries as of December 31, 2009, and
the related audited consolidated statements of income, changes in shareholder’s equity and cash
flows for the year then ended and (ii) the unaudited consolidated balance sheet of the Trust and
its Subsidiaries as of the fiscal quarter ended September 30, 2010, and the related unaudited
consolidated statements of income, changes in shareholder’s equity and cash flows for the quarter
then ended (collectively, the “Initial Financials”). Such Initial Financials have been prepared in
accordance with GAAP and, with respect to the annual audited statements, are accompanied by an
auditors’ report prepared without qualification by the Accountants. The Initial Financials fairly
present the financial condition of the Trust and its Subsidiaries as at the close of business on
the date thereof and the results of operations for the fiscal year (or quarter) then ended, subject
in the case of interim statements to normal and customary year-end adjustments. There are no
contingent liabilities of the Trust or any of its Subsidiaries as of such date known to the
officers of the Trust or any of its Subsidiaries not disclosed in the Initial Financials.

§7.5 No Material Changes, Etc. Since the Financial Statement Date, there has occurred
no materially adverse change in the business, operations, assets, condition (financial or
otherwise) or properties of the Trust, FPLP or any other member of the Potomac Group. Since the
Financial Statement Date and the Closing Date (or such later date upon which a Real Estate Asset
became part of the Borrowing Base Pool or the Unencumbered Pool), there has been no material
adverse change to the Net Operating Income of any Real Estate Asset that is part of the Borrowing
Base Pool or Unencumbered Pool.

 

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§7.6. Franchises, Patents, Copyrights, Etc. The Borrower, the Trust and each of their
respective Subsidiaries possess all franchises, patents, copyrights, trademarks, trade names,
licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their
respective businesses substantially as now conducted without known
conflict with any rights of others, except where the failure to so possess could not reasonably be
expected to have a material adverse effect on the business, operations, assets, condition
(financial or otherwise) or properties of the Trust, FPLP or any other member of the Potomac Group.
The Borrower, the Trust and each of their respective Subsidiaries possess all material Permits
relating to each of the Eligible Borrowing Base Properties and Eligible Unencumbered Properties.
FPLP is pre-approved as a landlord for the United States government by the General Services
Administration as part of the General Services Administration’s Advanced Acquisition Program (the
“AAP Qualification”).

§7.7 Litigation. Except as disclosed on Schedule 7.7, there are no actions,
suits, proceedings or investigations of any kind pending or, to the Borrower’s or the Trust’s
knowledge, threatened against the Borrower, the Trust or any of their respective Subsidiaries
before any court, tribunal or administrative agency or board that, if adversely determined, could
reasonably be expected to, either individually or in the aggregate, materially adversely affect the
business, operations, assets, condition (financial or otherwise) or properties of the Trust, FPLP
or any other member of the Potomac Group, or materially impair the right of the Trust, FPLP or any
other member of the Potomac Group, to carry on its businesses substantially as now conducted by it,
or result in any substantial liability not fully covered by insurance, or for which adequate
reserves are not maintained, as reflected in the applicable consolidated financial statements or
SEC Filings of the Borrower and the Trust, or which question the validity of this Agreement or any
of the other Loan Documents, or any action taken or to be taken pursuant hereto or thereto.

§7.8. No Materially Adverse Contracts, Etc. Neither the Borrower, the Trust nor any
of their respective Subsidiaries is subject to any charter, corporate, partnership or other legal
restriction, or any judgment, decree, order, rule or regulation that has or could reasonably
expected in the future to have a materially adverse effect on the business, operations, assets,
condition (financial or otherwise) or properties of the Trust, FPLP or any other member of the
Potomac Group. None of the Borrower, the Trust or any of their respective Subsidiaries is a party
to any contract or agreement that has had, or could reasonably be expected to have, any materially
adverse effect on the business, operations, assets, condition (financial or otherwise) or
properties of the Trust, FPLP or any other member of the Potomac Group.

§7.9. Compliance With Other Instruments, Laws, Etc. Neither the Borrower, the Trust
nor any of their respective Subsidiaries is in violation of any provision of its partnership
agreement, charter or other Organizational Document, as the case may be, or any agreement or
instrument to which it may be subject or by which it or any of its properties may be bound or any
decree, order, judgment, statute, license, rule or regulation, in any of the foregoing cases in a
manner that could reasonably be expected to result, individually or in the aggregate, in the
imposition of substantial penalties or
materially and adversely affect the business, operations, assets, condition (financial or
otherwise) or properties of the Trust, FPLP or any other member of the Potomac Group.

 

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§7.10. Tax Status. (i) Each of the Borrower, the Trust and their respective
Subsidiaries (a) has made or filed all federal, state and local income and all other tax returns,
reports and declarations required by any jurisdiction to which it is subject, (b) has paid all
taxes and other governmental assessments and charges shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith and by appropriate
proceedings, and (c) has set aside on its books provisions reasonably adequate for the payment of
all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply, and (ii) there are no unpaid taxes claimed to be due by the taxing authority of any
jurisdiction, and the respective officers of the Borrower and the Trust and their respective
Subsidiaries know of no basis for any such claim.

§7.11 No Event of Default. No Default or Event of Default has occurred and is
continuing.

§7.12. Investment Company Acts. None of the Borrower, the Trust or any of their
respective Subsidiaries is an “investment company”, or an “affiliated company” or a “principal
underwriter” of an “investment company”, as such terms are defined in the Investment Company Act of
1940.

§7.13. Name; Jurisdiction of Organization; Absence of UCC Financing Statements, Etc.
The exact legal name of the Borrower, the Subsidiary Guarantors, FP Redland Tech and the Trust, and
their respective jurisdictions of organization, are set forth on Schedule 7.13 attached
hereto. Except for Permitted Liens or as permitted pursuant to Section 7.3(a) solely with respect
to any Eligible Borrowing Base Property (but not any Pledged Equity Interests), there is no
financing statement, security agreement, chattel mortgage, real estate mortgage, equipment lease,
financing lease, option, encumbrance or other document filed or recorded with any filing records,
registry, or other public office, that purports to cover, affect or give notice of any present or
possible future lien or encumbrance on, or security interest in, any Eligible Borrowing Base
Property, any Pledged Entity, any Pledged Equity Interests or the Equity Interests of any Pledged
Entity. Neither the Borrower, any Subsidiary Guarantor, FP Redland Tech nor the Trust has pledged
or granted any lien on or security interest in or otherwise encumbered or transferred any of their
respective interests in the Borrower or any Subsidiary Guarantor, FP Redland Tech or the Redlands
Property, as applicable (including in the case of the Trust, its interests in FPLP), other than
pursuant to the Loan Documents.

§7.14. Absence of Liens. The Borrower, FP Redland Tech or a Subsidiary Guarantor is
the owner of the Eligible Borrowing Base Properties free from any Lien,
except for Permitted Liens. The Borrower or a Subsidiary Guarantor is the owner of the Pledged
Equity Interests free from any Lien.

 

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§7.15. Certain Transactions. Except as set forth on Schedule 7.15, none of
the officers, partners, directors, or employees of the Trust, the Borrower or any of their
Subsidiaries is presently a party to any transaction with the Borrower, the Trust or any of their
respective Subsidiaries (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, or otherwise requiring payments to or
from any officer, partner, director or such employee or, to the knowledge of the Borrower or the
Trust, any corporation, partnership, trust or other entity in which any officer, partner, director,
or any such employee or natural Person related to such officer, partner, director or employee or
other Person in which such officer, partner, director or employee has a direct or indirect
beneficial interest has a substantial interest or is an officer, director, trustee or partner.
Other than those transactions set forth on Schedule 7.15, none of the Trust, the Borrower
or any of their Subsidiaries will enter into any transaction of any kind with Perseus, whether or
not in the ordinary course of business, other than on fair and reasonable terms substantially as
favorable to the Trust, the Borrower or such Subsidiary as would be obtainable by the Trust, the
Borrower or such Subsidiary at the time in a comparable arm’s length transaction with an unrelated,
unaffiliated Person.

§7.16. Employee Benefit Plans; Multiemployer Plans; Guaranteed Pension Plans. Except
as disclosed in the SEC Filings or on Schedule 7.16, none of the Borrower, the Trust nor
any ERISA Affiliate maintains or contributes to any Employee Benefit Plan, Multiemployer Plan or
Guaranteed Pension Plan.

§7.17. Regulations U and X. No portion of any Loan is to be used for the purpose of
purchasing or carrying any “margin security” or “margin stock” as such terms are used in
Regulations U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 221
and 224.

§7.18. Environmental Compliance. The Borrower has caused Phase I and other
environmental assessments or similar assessments (collectively, the “Environmental Reports”) to be
conducted to investigate the past and present environmental condition and usage of the Real Estate
Assets, true and complete copies of which have been delivered to the Agent. To the Borrower’s
knowledge, except as otherwise expressly specified in the Environmental Reports, the Borrower makes
the following representations and warranties:

(a) None of the Borrower, its Subsidiaries, the Trust or any operator of the Real Estate
Assets or any portion thereof, or any operations thereon is in violation, or alleged violation, of
any judgment, decree, order, law, license, rule or regulation pertaining to environmental matters,
including without limitation, those arising under the
Resource Conservation and Recovery Act (“RCRA”), the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 as amended (“CERCLA”), the Superfund Amendments and
Reauthorization Act of 1986 (“SARA”), the Federal Clean Water Act, the Federal Clean Air Act, the
Toxic Substances Control Act, or any state or local statute, regulation, ordinance, order or decree
relating to health, safety or the environment (hereinafter “Environmental Laws”), which violation
or alleged violation has, or its remediation would have, by itself or when aggregated with all such
other violations or alleged violations, a material adverse effect on the business, operations,
assets, condition (financial or otherwise), properties or prospects of the Trust, FPLP or any other
member of the Potomac Group, or constitutes a Disqualifying Environmental Event with respect to any
of the Eligible Borrowing Base Properties.

 

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(b) None of the Borrower, the Trust or any of their respective Subsidiaries has received
written notice from any third party, including, without limitation, any federal, state or local
governmental authority, (i) that it has been identified by the United States Environmental
Protection Agency (“EPA”) as a potentially responsible party under CERCLA with respect to a site
listed on the National Priorities List, 40 C.F.R. Part 300 Appendix B (1986), (ii) that any
hazardous waste, as defined by 42 U.S.C. § 9601(5), any hazardous substances as defined by 42
U.S.C. § 9601(14), any pollutant or contaminant as defined by 42 U.S.C. §9601(33) or any toxic
substances, oil or hazardous materials or other chemicals or substances regulated by any
Environmental Laws (“Hazardous Substances”) which it has generated, transported or disposed of have
been found at any site at which a federal, state or local agency or other third party has conducted
or has ordered that the Borrower, the Trust or any of their respective Subsidiaries conduct a
remedial investigation, removal or other response action pursuant to any Environmental Law, or
(iii) that it is or shall be a named party to any claim, action, cause of action, complaint, or
legal or administrative proceeding (in each case, contingent or otherwise) arising out of any third
party’s incurrence of costs, expenses, losses or damages of any kind whatsoever in connection with
the release of Hazardous Substances, which event described in any such notice would have a material
adverse effect on the business, operations, assets, condition (financial or otherwise), properties
or prospects of the Trust, FPLP or any other member of the Potomac Group, or constitutes a
Disqualifying Environmental Event with respect to any of the Eligible Borrowing Base Properties.

 

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(c) (i) No portion of the Real Estate Assets has been used for the handling, processing,
storage or disposal of Hazardous Substances except in accordance with applicable Environmental
Laws; and no underground tank or other underground storage receptacle for Hazardous Substances is
located on any portion of any Real Estate Assets except in accordance with applicable Environmental
Laws, (ii) in the course of any activities conducted by the Borrower, the Trust, their respective
Subsidiaries or the operators of their respective properties or any ground or space tenants on any
Real Estate Asset, no Hazardous Substances have been generated or are being used on such Real
Estate Asset except in accordance with applicable Environmental Laws, (iii) there has
been no present or past releasing, spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, disposing or dumping (a “Release”) or threatened Release of
Hazardous Substances on, upon, into or from the Real Estate Assets in violation of applicable
Environmental Laws, (iv) there have been no Releases in violation of applicable Environmental Laws
upon, from or into any real property in the vicinity of any of the Real Estate Assets which,
through soil or groundwater contamination, may have come to be located on such Real Estate Asset,
and (v) to the best of Borrower’s knowledge, any Hazardous Substances that have been generated on
any of the Real Estate Assets during ownership thereof by the Borrower, the Trust, their respective
Subsidiaries or the operations of their respective properties have been transported off-site only
in compliance with all applicable Environmental Laws; any of which events described in clauses (i)
through (v) above would have a material adverse effect on the business, operations, assets,
condition (financial or otherwise), properties or prospects of the Trust, FPLP or any other member
of the Potomac Group, or constitutes a Disqualifying Environmental Event with respect to any of the
Eligible Borrowing Base Properties.

(d) None of the Borrower, the Trust or any of the Real Estate Assets is subject to any
applicable Environmental Law requiring the performance of Hazardous Substances site assessments, or
the removal or remediation of Hazardous Substances, or the giving of notice to any governmental
agency or the recording or delivery to other Persons of an environmental disclosure document or
statement, by virtue of the transactions set forth herein and contemplated hereby, or as a
condition to the effectiveness of any other transactions contemplated hereby.

§7.19. Subsidiaries. Schedule 7.19 sets forth, as of the Closing Date, the
exact legal name and the tax identification number of (a) the Trust, (b) the Borrower, (c) FP
Redland Tech and each of its Subsidiaries and (d) each Subsidiary of the Borrower and each
Subsidiary Guarantor, which directly or indirectly owns the Redlands Property. FP Redland Tech is
a Subsidiary of the Borrower (and not a Partially-Owned Entity).

§7.20. Loan Documents. All of the representations and warranties by or on behalf of
the Borrower and the Trust and their respective Subsidiaries made in this Agreement and in the
other Loan Documents or any document or instrument delivered to the Agent or the Lenders pursuant
to or in connection with any of such Loan Documents are true and correct in all material respects
and do not include any untrue statement of a material fact or omit to state a material fact
required to be stated or necessary to make such representations and warranties not materially
misleading.

§7.21. REIT Status. The Trust has not taken any action that would prevent it from
maintaining its qualification as a REIT for its tax years ending December 31, 2005, December 31,
2006, December 31, 2007, December 31, 2008 or December 31, 2009, or from maintaining such
qualification at all times during the term of this Agreement.

 

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§7.22. Anti-Terrorism Regulations.

(a) General. Neither the Borrower, the Trust nor any Affiliate thereof is in
violation of any Anti-Terrorism Law or engages in or conspires to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law.

(b) Executive Order No. 13224. Neither Borrower, the Trust nor any Affiliate thereof
is any of the following (each a “Blocked Person”):

(i) a Person that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

(ii) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed
in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224;

(iii) a Person or entity with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law;

(iv) a Person or entity that commits, threatens or conspires to commit or supports “terrorism”
as defined in Executive Order No. 13224;

(v) a Person or entity that is named as a “specially designated national” on the most current
list published by the U.S. Treasury Department Office of Foreign Asset Control at its official
website or any replacement website or other replacement official publication of such list; or

(vi) a person or entity who is affiliated or associated with a person or entity listed above.

(c) Neither Borrower, the Trust nor any Affiliate thereof (i) conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for the benefit of any
Blocked Person, or (ii) deals in, or otherwise engages in any transaction relating to, any property
or interests in property blocked pursuant to Executive Order No. 13224.

(d) Neither Borrower, the Trust nor any Affiliate thereof are a “Special Designated National”
or “Blocked Person” as those terms are defined in the office of Foreign Asset Control Regulations
(31 C.F.R. § 500 et. seq.).

§8. AFFIRMATIVE COVENANTS OF THE BORROWER AND THE TRUST. The Borrower and the Trust,
on their own behalf and on behalf of their respective Subsidiaries, jointly and severally covenant
and agree that:

 

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§8.1. Punctual Payment. The Borrower will duly and punctually pay or cause to be paid
the principal and interest on the Loans and all interest, fees, charges and other amounts and
Obligations provided for in this Agreement and the other Loan Documents, all in accordance with the
terms of this Agreement, the Notes and the other Loan Documents.

§8.2. Maintenance of Office; Jurisdiction of Organization, Etc.. Each of the
Borrower, the Subsidiary Guarantors, FP Redland Tech and the Trust will maintain its chief
executive office in Bethesda, Maryland, or at such other place in the United States of America as
each of them shall designate by written notice to the Agent to be delivered at least thirty (30)
days prior to any change of chief executive office, where, subject to §21, notices, presentations
and demands to or upon the Borrower, the Subsidiary Guarantors and the Trust in respect of the Loan
Documents may be given or made. Neither the Borrower, any Subsidiary Guarantor, FP Redland Tech or
the Trust will change its jurisdiction of organization, name or corporate structure without giving
the Agent at least thirty (30) days prior written notice of such change, and, in the case of a
change in corporate structure, without the prior written consent of the Agent, which consent may
not be unreasonably withheld.

§8.3. Records and Accounts. Each of the Borrower, the Subsidiary Guarantors, FP
Redland Tech and the Trust will (a) keep, and cause each of its Subsidiaries to keep, true and
accurate records and books of account in which full, true and correct entries will be made in
accordance with GAAP and (b) maintain adequate accounts and reserves for all taxes (including
income taxes), contingencies, depreciation and amortization of its properties and the properties of
its Subsidiaries.

§8.4. Financial Statements, Certificates and Information. The Borrower and the Trust
will deliver to the Agent:

(a) as soon as practicable, but in any event not later than ninety (90) days after the end of
each fiscal year of the Trust, the audited consolidated balance sheet of the Trust and its
Subsidiaries at the end of such year, and the related audited consolidated statements of income,
changes in shareholder’s equity and cash flows for the year then ended, in each case, setting forth
in comparative form the figures as of the end of and for the previous fiscal year and all such
statements to be in reasonable detail, prepared in accordance with GAAP (which may be provided by
inclusion in the Form 10-K of the Trust filed with the SEC for such period and delivered to the
Agent), and, in each case, accompanied by an auditor’s report prepared without qualification by the
Accountants (and the Borrower also shall deliver the foregoing for FPLP on a consolidated basis);
together with (i) a certification by the principal financial or accounting officer of the Borrower
and the Trust that the information contained in such financial statements fairly presents the
financial position of the Trust and its Subsidiaries on the date thereof (which may be provided by
inclusion in the Form 10-K of the Trust
filed with the SEC for such period and delivered to the Agent) and (ii) a written statement from
such Accountants to the effect that they have read a copy of this Agreement, and that, in making
the examination necessary to said certification, they have obtained no knowledge of any Default or
Event of Default under §10 or otherwise under the provisions of this Agreement relating to the
financial condition of the Trust or any of its Subsidiaries, or of any facts or circumstances that
would cause the Trust not to continue to qualify as a REIT for federal income tax purposes, or, if
such Accountants shall have obtained knowledge of any then existing Default, Event of Default or
such facts or circumstances, they shall make disclosure thereof in such statement;

 

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(b) as soon as practicable, but in any event not later than forty-five (45) days after the end
of each of its March 31, June 30 and September 30 fiscal quarters, copies of the unaudited
consolidated balance sheet of the Trust and its Subsidiaries, as at the end of such quarter, and
the related unaudited consolidated statements of income, changes in shareholders’ equity and cash
flows for the portion of the Trust’s fiscal year then elapsed, all in reasonable detail and
prepared in accordance with GAAP (which may be provided by inclusion in the Form 10-Q of the Trust
filed with the SEC for such period and delivered to the Agent), together with a certification by
the principal financial or accounting officer of the Borrower and the Trust that the information
contained in such financial statements fairly presents the financial position of the Trust and its
Subsidiaries on the date thereof (which may be provided by inclusion in the Form 10-Q of the Trust
filed with the SEC for such period and delivered to the Agent) (subject to year-end adjustments
none of which shall be materially adverse and the absence of footnotes) (and the Borrower also
shall deliver the foregoing for FPLP on a consolidated basis);

(c) as soon as practicable, but in any event not later than ninety (90) days after the end of
each of its fiscal years, a rent roll and operating statement in respect of each Eligible Borrowing
Base Property, certified by the chief financial or accounting officer of the Borrower as true and
correct;

(d) as soon as practicable, but in any event not later than forty-five (45) days after the end
of each of the fiscal quarters of the Borrower, a rent roll and operating statement in respect of
each Eligible Borrowing Base Property, certified by the chief financial or accounting officer of
the Borrower as true and correct;

(e) simultaneously with the delivery of the financial statements referred to in subsections
(a) and (b) above, a Certificate of Compliance in the form of Exhibit C hereto signed by
the chief financial or accounting officer of the Borrower, and setting forth in reasonable detail
computations evidencing compliance with the covenants contained in §10;

 

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(f) promptly as they become available, a copy of each report submitted to the Borrower, the
Trust or any of their respective subsidiaries by the
Accountants in connection with each annual audit of the books of the Borrower, the Trust or such
Subsidiary by such Accountants or in connection with any interim audit thereof pertaining to any
phase of the business of the Borrower, the Trust or any such Subsidiary;

(g) contemporaneously with (or promptly after) the filing or mailing thereof, copies of all
material of a financial nature sent to the holders of any Indebtedness of the Borrower or any
Subsidiary Guarantor for borrowed money (other than the Term Loan), to the extent that the
information or disclosure contained in such material refers to or could reasonably be expected to
have a material adverse effect on the business, operations, assets, condition (financial or
otherwise) or properties of the Trust, FPLP or any other member of the Potomac Group;

(h) contemporaneously with the filing or mailing thereof, copies of all material of a
financial nature filed with the SEC or sent to the stockholders of the Trust;

(i) unless delivered pursuant to clauses (a) or (b) above, as applicable, as soon as
practicable, but in any event not later than ninety (90) days after the end of each fiscal year of
the Trust, copies of the Form 10-K statement filed by the Trust with the SEC for such fiscal year,
and as soon as practicable, but in any event not later than fifty (50) days after the end of each
fiscal quarter of the Trust copies of the Form 10-Q statement filed by the Trust with the SEC for
such fiscal quarter, provided that, in either case, if the SEC has granted an extension for
the filing of such statements, the Trust shall deliver such statements to the Agent within ten (10)
days after the filing thereof with the SEC;

(j) in the case of the Borrower and the Trust, as soon as practicable, but in any event not
later than thirty (30) days prior to the end of each of their respective fiscal years, a business
plan for the next fiscal year (including pro forma projections for such period);

(k) if requested by the Agent, a certification by the chief financial or accounting officer of
the Borrower of the state and federal taxable income of the Trust and its Subsidiaries as of the
end of any applicable fiscal year; and

(l) from time to time such other financial data and other information about the Borrower, the
Trust, the Subsidiary Guarantors, their respective Subsidiaries, the Real Estate Assets (including
the Eligible Borrowing Base Properties), the Pledged Equity Interests and the Partially-Owned
Entities as the Agent or any Lender (through the Agent) may reasonably request. Without limitation
of the foregoing, at the request of the Agent, the Borrower will deliver to the Agent information
relating to (i) the determination of the existence or absence of a Disqualifying Environmental
Event or a Disqualifying Structural Event, (ii) title to any Eligible Borrowing Base Property,
(iii) insurance coverage and (iv) compliance with the financial covenants set forth in §10.

 

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§8.5. Notices.

(a) Defaults. The Borrower will, promptly after obtaining knowledge of the same,
notify the Agent in writing (with copies to the Agent for each Lender) of the occurrence of any
Default or Event of Default and any dispute under any of the Organizational Documents of a
Subsidiary Guarantor or FP Redland Tech or relating to the Pledged Equity Interests. If any Person
shall give any notice or take any other action in respect of (x) a claimed Default (whether or not
constituting an Event of Default) under this Agreement or (y) a claimed failure by the Borrower,
any Subsidiary Guarantor or the Trust or any of their respective Subsidiaries, as applicable, to
comply with any term, condition or provision of or under any note, evidence of Indebtedness,
indenture or other obligation in excess of $20,000,000, individually or in the aggregate, in
respect of Indebtedness that is Without Recourse and in excess of $2,000,000, individually or in
the aggregate, in respect of Indebtedness that is Recourse, to which or with respect to which any
of them is a party or obligor, whether as principal or surety, and such failure to comply would
permit the holder of such note or obligation or other evidence of Indebtedness to accelerate the
maturity thereof, the Borrower shall forthwith give written notice thereof to the Agent and each of
the Lenders, describing the notice or action and the nature of the claimed failure to comply.
Without limitation of the foregoing, the Borrower and each Subsidiary Guarantor will immediately
provide the Agent with (x) a copy of any notice given or received by it pursuant to Section 3.8 of
the Tech LP Agreement, (y) a copy of each Funding Notice given by FP Redland GP, LLC under the Tech
LP Agreement and (z) evidence of each Contribution made by the Borrower or any Subsidiary Guarantor
pursuant to any Funding Notice upon the making thereof.

(b) Environmental Events. The Borrower will promptly give notice in writing to the
Agent (with copies to the Agent for each Lender) (i) upon Borrower’s, the Subsidiary Guarantor’s,
FP Redland Tech’s or the Trust’s obtaining knowledge of any material violation (as determined by
the Borrower, the Subsidiary Guarantor, FP Redland Tech or the Trust in the exercise of its
reasonable discretion) of any Environmental Law regarding any Real Estate Asset or Borrower’s, the
Subsidiary Guarantor’s, FP Redland Tech’s or the Trust’s operations, (ii) upon Borrower’s, the
Subsidiary Guarantor’s, FP Redland Tech’s or the Trust’s obtaining knowledge of any known Release
of any Hazardous Substance at, from, or into any Real Estate Asset which it reports in writing or
is reportable by it in writing to any governmental authority and which is material in amount or
nature or which could materially affect the value of such Real Estate Asset, (iii) upon Borrower’s,
the Subsidiary Guarantor’s, FP Redland Tech’s or the Trust’s receipt of any notice of material
violation of any Environmental Laws or of any material Release of Hazardous Substances in violation
of any Environmental Laws or any matter that may be a Disqualifying Environmental Event with
respect to any of the Eligible Borrowing Base Properties, including a notice or claim of liability
or potential responsibility from any third party (including without limitation any federal, state
or local governmental officials) and including notice of any formal inquiry, proceeding, demand,
investigation or other action with regard to (A) Borrower’s or the Trust’s or any other
Person’s operation of any Real Estate Asset, (B) contamination on, from or into any Real Estate
Asset, or (C) investigation or remediation of off-site locations at which Borrower, the Subsidiary
Guarantor, FP Redland Tech or the Trust or any of its predecessors are alleged to have directly or
indirectly disposed of Hazardous Substances, or (iv) upon Borrower’s, the Subsidiary Guarantor’s,
FP Redland Tech’s or the Trust’s obtaining knowledge that any expense or loss has been incurred by
such governmental authority in connection with the assessment, containment, removal or remediation
of any Hazardous Substances with respect to which Borrower, the Subsidiary Guarantor, FP Redland
Tech or the Trust or any Partially-Owned Entity may be liable or for which a lien may be imposed on
any Real Estate Asset.

 

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(c) Notification of Claims against Eligible Borrowing Base Properties and Eligible
Unencumbered Properties. The Borrower will, and will cause each Subsidiary to, promptly upon
becoming aware thereof, notify the Agent in writing (with copies to the Agent for each Lender) of
any setoff, claims, withholdings or other defenses to which any of the Eligible Borrowing Base
Properties or Eligible Unencumbered Properties are subject, which (i) could reasonably be expected
to have a material adverse effect on (x) the business, operations, assets, condition (financial or
otherwise), properties or prospects of the Trust, FPLP or any other member of the Potomac Group, or
(y) the value of any such Eligible Borrowing Base Property or Eligible Unencumbered Property, or
(ii) with respect to such Eligible Borrowing Base Property or Eligible Unencumbered Property,
constitute a Disqualifying Environmental Event, a Disqualifying Structural Event or a Lien subject
to the bonding or insurance requirement of §9.2(vii).

(d) Notice of Litigation and Judgments. The Borrower will give notice to the Agent in
writing (with copies to the Agent for each Lender) within three (3) days of becoming aware of any
litigation or proceedings threatened in writing or any pending litigation and proceedings an
adverse determination in which could materially adversely affect FPLP, the Trust, any member of the
Potomac Group, any of the Pledged Equity Interests or any Eligible Borrowing Base Property or to
which the Borrower, a Subsidiary Guarantor, the Trust or any of their respective Subsidiaries is or
is to become a party involving a claim against the Borrower, a Subsidiary Guarantor, the Trust or
any of their respective Subsidiaries that could reasonably be expected to have a materially adverse
effect on the respective business, operations, assets, condition (financial or otherwise) or
properties of the Trust, FPLP or any other member of the Potomac Group, the Collateral or on the
value or operation of an Eligible Borrowing Base Property and stating the nature and status of such
litigation or proceedings. The Borrower will give notice to the Agent and each of the Lenders, in
writing, in form and detail reasonably satisfactory to the Agent, within three (3) days of any
judgment not covered by insurance, final or otherwise, against the Borrower, a Subsidiary
Guarantor, the Trust or any of such Subsidiaries in an amount in excess of $1,000,000.

 

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§8.6. Existence of Borrower; Maintenance of Properties. On the Closing Date,
concurrently with the effectiveness of this Agreement, the Borrower shall cause the Organizational
Documents of any Subsidiary Guarantor whose purpose under its existing Organizational Documents is
limited by reference to any particular specified indebtedness to be amended in the form previously
provided to the Agent. The Borrower, the Subsidiary Guarantors, FP Redland Tech and the Trust will
do or cause to be done all things necessary to, and shall, preserve and keep in full force and
effect its respective existence in its jurisdiction of organization and will do or cause to be done
all things necessary to preserve and keep in full force all of its respective rights and franchises
and those of its respective Subsidiaries which may be necessary to properly and advantageously
conduct the businesses conducted by it. The Borrower, FP Redland Tech and each of the Subsidiary
Guarantors (a) will cause all necessary repairs, renewals, replacements, betterments and
improvements to be made to all Real Estate Assets owned or controlled by it, all as in the judgment
of the Borrower, FP Redland Tech or such Subsidiary Guarantor may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted at all times,
subject to the terms of the applicable Leases and partnership agreements or other entity charter
documents, and in any event, will keep all of the Real Estate Assets (for so long as such Real
Estate Assets are owned by the Borrower, a Subsidiary Guarantor or any of their respective
Subsidiaries) in a condition consistent with the Real Estate Assets currently owned or controlled
by the Borrower, the Subsidiary Guarantors or their respective Subsidiaries, (b) will cause all of
its other properties and those of its Subsidiaries (to the extent controlled by the Borrower or the
Subsidiary Guarantor) used or useful in the conduct of its business or the business of its
Subsidiaries to be maintained and kept in good condition, repair and working order and supplied
with all necessary equipment, (c) will not permit the Trust to directly own or lease any Real
Estate Asset, and (d) will, and will cause each of their respective Subsidiaries to continue to
engage primarily in the businesses now conducted by them and in related businesses, all of the
foregoing to the extent necessary to comply with the other terms and conditions set forth in this
Agreement, and in the case of clauses (a) and (b) above to the extent, in the good faith judgment
of the Borrower, necessary to properly and advantageously conduct the businesses being conducted by
it. Without limitation of the foregoing, the business in which the Borrower and its Subsidiaries
are engaged will be limited to the acquisition, development, ownership and operation of
income-producing office, industrial and flex properties in the Mid-Atlantic United States and any
business activities and Investments permitted under §9.3 incidental thereto.

§8.7. Existence of the Trust; Maintenance of REIT Status of the Trust; Maintenance of
Properties. The Trust will do or cause to be done all things necessary to preserve and keep in
full force and effect the Trust’s existence as a Maryland corporation. The Trust will at all times
(i) maintain its status as a REIT and not take any action which could lead to its disqualification
as a REIT and (ii) continue to operate as a self-directed and self-administered REIT and be listed
on a nationally-recognized stock exchange. The Trust will not engage in any business other than the
business of acting as a
REIT and serving as the general partner and limited partner of the Borrower and matters directly
relating thereto, and shall (x) conduct all or substantially all of its business operations through
the Borrower or through subsidiary partnerships or other entities in which the Borrower owns 100%
of the economic interests and (y) own no real property or material personal property other than
through its ownership interests in the Borrower. The Trust will (a) cause all of its properties
and those of its Subsidiaries used or useful in the conduct of its business or the business of its
Subsidiaries to be maintained and kept in good condition, repair and working order, and supplied
with all necessary equipment, (b) cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Trust may be necessary so that
the business carried on in connection therewith may be properly and advantageously conducted at all
times and (c) cause each of its Subsidiaries to continue to engage primarily in the businesses now
conducted by it and in related businesses, in each case under clauses (a), (b) and (c) above to the
extent, in the good faith judgment of the Trust, necessary to properly and advantageously conduct
the businesses being conducted by it.

 

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§8.8. Insurance. The Borrower, the Subsidiary Guarantors and the Trust will maintain
with respect to their other properties, and will cause each of their respective Subsidiaries to
maintain, with financially sound and reputable insurers, insurance with respect to such properties
and its business against such casualties and contingencies as shall be in accordance with the
general practices of businesses engaged in similar activities in similar geographic areas and in
amounts, containing such terms, in such forms and for such periods as may be reasonable and
prudent.

§8.9. Taxes. The Borrower and the Subsidiary Guarantors will, and will cause each of
their respective Subsidiaries to, pay or cause to be paid real estate taxes, other taxes,
assessments and other governmental charges against the Real Estate Assets before the same become
delinquent and will duly pay and discharge, or cause to be paid and discharged, before the same
shall become overdue, all taxes, assessments and other governmental charges imposed upon its sales
and activities, or any part thereof, or upon the income or profits therefrom, as well as all claims
for labor, materials, or supplies that if unpaid might by law become a lien or charge upon any of
the Real Estate Assets; provided that any such tax, assessment, charge, levy or claim need
not be paid if the validity or amount thereof shall currently be contested in good faith by
appropriate proceedings and if the Borrower, the Subsidiary Guarantor or the Trust shall have set
aside on its books adequate reserves with respect thereto; and provided further that the
Borrower, the Subsidiary Guarantors or the Trust will pay all such taxes, assessments, charges,
levies or claims forthwith prior to the consummation of proceedings to foreclose any lien that may
have attached as security therefor. Promptly upon request by the Agent if required for bank
regulatory compliance purposes or similar bank purposes, the Borrower will provide evidence of the
payment of real estate taxes, other taxes, assessments and other governmental charges against the
Real Estate Assets in the form of receipted tax bills or other form reasonably acceptable to the
Agent, or evidence of the existence of applicable contests as contemplated herein.

 

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§8.10. Inspection of Properties and Books. (a) Subject to the rights of tenants to
limit or prohibit such access, as denoted in the applicable Leases, the Borrower, the Subsidiary
Guarantors and the Trust will, and will cause their respective Subsidiaries to, permit the Agent or
any of its designated representatives upon reasonable notice (which notice may be given orally or
in writing and provided that no notice shall be required if a Default or Event of Default
has occurred and is continuing), to visit and inspect any of the properties of the Borrower, such
Subsidiary Guarantor, the Trust or any of their respective Subsidiaries to examine the books of
account of the Borrower, such Subsidiary Guarantor, the Trust and their respective Subsidiaries
(and to make copies thereof and extracts therefrom) and to discuss the affairs, finances and
accounts of the Borrower, such Subsidiary Guarantor, the Trust and their respective Subsidiaries
with, and to be advised as to the same by, its officers, all at such reasonable times and intervals
as the Agent may reasonably request.

(b) The Borrower hereby agrees that each of the Lenders and the Agent (and each of their
respective, and their respective affiliates’, employees, officers, directors, agents and advisors
(collectively, “Representatives”) is, and has been from the commencement of discussions with
respect to the facility established by the Agreement (the “Facility”), permitted to disclose to any
and all Persons, without limitation of any kind, the structure and tax aspects (as such terms are
used in Code sections 6011 and 6111) of the Facility, and all materials of any kind (including
opinions or other tax analyses) that are or have been provided to such Lender or the Agent related
to such structure and tax aspects. In this regard, the Lenders and the Agent intend that this
transaction will not be a “confidential transaction” under Code sections 6011, 6111 or 6112, and
the regulations promulgated thereunder. Neither Borrower, the Trust, any Subsidiary Guarantor, nor
any Subsidiary of any of the foregoing intends to treat the Term Loan or the transactions
contemplated by this Agreement and the other Loan Documents as being a “reportable transaction”
(within the meaning of Treasury Regulation Section 1.6011-4). If the Borrower or any Subsidiary
Guarantor determines to take any action inconsistent with such intention, the Borrower will
promptly notify the Agent thereof. If the Borrower so notifies the Agent, the Borrower
acknowledges that the Agent may treat the Term Loan as part of a transaction that is subject to
Treasury Regulation Section 301.6112-1, and the Agent will maintain the lists and other records,
including the identity of the applicable party to the Term Loan as required by such Treasury
Regulation.

 

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(c) The Borrower hereby acknowledges that (a) the Agent and/or the Arranger will make
available to the Lenders materials and/or information provided by the Borrower hereunder by posting
such materials on SyndTrak or another similar electronic system (the “Platform”) and (b)
certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to the Borrower or its securities) (each, a
“Public Lender”). The Borrower hereby agrees that (w) all such materials that are to be
made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” by Borrower which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (x) by marking such materials “PUBLIC,” the
Borrower shall be deemed to have authorized the Agent, the Arranger and the Lenders to treat such
materials as not containing any material non-public information with respect to the Borrower, the
Subsidiary Guarantors, the Trust or their securities for purposes of United States Federal and
state securities laws; (y) all such materials marked “PUBLIC” by Borrower are permitted to be made
available through a portion of the Platform designated “Public Investor;” and (z) the Agent and the
Arranger shall be entitled to treat any such materials that are not marked “PUBLIC” as being
suitable only for posting on a portion of the Platform established for confidential non-public
information and materials with respect to Borrower, the Subsidiary Guarantors, the Trust or their
securities and not designated “Public Investor.” Notwithstanding the foregoing, Borrower shall be
under no obligation to mark any such materials “PUBLIC.” In addition, Agent, Arranger and the
Lenders all agree to maintain all such materials (other than any such materials as are marked
“PUBLIC”) in confidence and further agree that they shall not make any such materials available to
any other Person (including, without limitation, other proposed Lenders and/or participants) unless
and until such other Person agrees in writing to maintain such materials in confidence consistent
with the terms hereof.

§8.11. Compliance with Laws, Contracts, Licenses, and Permits. The Borrower, the
Subsidiary Guarantors and the Trust will comply with, and will cause each of their respective
Subsidiaries to comply with (a) all applicable laws and regulations now or hereafter in effect
wherever its business is conducted that are material in any respect to the operation of their
respective businesses in the ordinary course and consistent with past practices, including, without
limitation, all such Environmental Laws and all such applicable federal and state securities laws,
(b) the provisions of its partnership agreement or corporate charter and other Organizational
Documents, as applicable, (c) all material agreements and instruments to which it is a party or by
which it or any of its properties may be bound (including the Real Estate Assets and the Leases, as
applicable) and (d) all applicable decrees, orders, and judgments. If at any time while the Term
Loan or any Note or other Obligation is outstanding or the Lenders have any obligation to make,
continue or convert a portion of the Term Loan hereunder, any Permit shall become necessary or
required in order that the Borrower or any Subsidiary Guarantor may fulfill any of its obligations
hereunder, the Borrower, the Subsidiary Guarantors and the Trust and their respective Subsidiaries
will immediately take or cause to be taken all reasonable steps within the power of the Borrower,
such Subsidiary Guarantor or the Trust, as applicable, to obtain such Permit and furnish the Agent
with evidence thereof.

§8.12. Use of Proceeds. Subject at all times to the other provisions of this
Agreement, including without limitation §7.17, the Borrower will use the proceeds of the Loans
solely to finance the direct (or indirect through its Wholly-owned Subsidiaries that are Subsidiary
Guarantors hereunder) acquisition of the FP Redland Tech Equity Interests.

 

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§8.13. Additional Borrower; Solvency of Borrower; Removal of Subsidiary Guarantor;
Addition of Real Estate Asset to Borrowing Base Pool.

(a) (i) If, after the Closing Date, the Borrower wishes to designate as an Eligible Borrowing
Base Property a Real Estate Asset that otherwise qualifies as an Eligible Borrowing Base Property
but is owned by a Person other than the Borrower or a Subsidiary Guarantor, the Borrower shall give
the Agent a written request thereof (the “Addition Request”). With the Addition Request, the
Borrower and/or the potential Subsidiary Guarantor, as applicable, shall deliver to the Agent each
of the following, all of which must be satisfactory to and approved by the Agent: (i) the
organizational structure and Organizational Documents for the direct and indirect owners of such
potential Eligible Borrowing Base Property; (ii) the operating statements and rent roll with
respect to such potential Eligible Borrowing Base Property; (iii) a Certificate of Compliance in
the form of Exhibit C evidencing compliance with the covenants set forth in §10, and
containing a certification that no Default or Event of Default exists and that such potential
Borrowing Base Asset is not the subject of a Disqualifying Environmental Event or a Disqualifying
Structural Event, in each case after giving effect to the inclusion of the additional Eligible
Borrowing Base Property; and (iv) such other documents, instruments, agreements, amendments or
supplements to existing Security Documents, lien search results, opinions or other information as
the Agent deems necessary or advisable with respect to such potential Eligible Borrowing Base
Property, the potential Subsidiary Guarantor or the potential Pledged Equity Interests (the items
specified in clauses (i) through (iv), the “New Property Diligence Documents”). The requested
addition of such new Eligible Borrowing Base Property shall be effective upon the receipt of
Unanimous Lender Approval (it being hereby agreed that a Lender shall be deemed to have consented
to the Addition Request if, after ten (10) Business Days following the receipt by such Lender of
the Addition Request and the New Property Diligence Documents, such Lender shall not have responded
in writing to the Agent) and the Agent’s receipt of, and satisfaction with, the New Property
Diligence Documents and the applicable Joinder Documents, which shall include, without limitation,
a joinder to the Subsidiary Guaranty pursuant to which such Wholly-owned Subsidiary which owns the
potential Eligible Borrowing Base Property guarantees the Obligations, a supplement to the Equity
Pledge Agreement pursuant to which one hundred percent of the Equity Interests of such Subsidiary
shall be pledged to the Agent and, if applicable, a supplement to any Account Agreement.

(ii) FPLP will not permit any Subsidiary Guarantor that owns an Eligible Borrowing Base
Property or FP Redland Tech to have any Subsidiaries unless such Subsidiary is wholly-owned by such
Subsidiary Guarantor and such Subsidiary’s business, obligations and undertakings are exclusively
related to the business of such Subsidiary Guarantor.

(b) The Borrower and the Trust shall remain solvent at all times.

 

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(c) In the event the Borrower wishes to add a Real Estate Asset to the Borrowing Base Pool
which does not meet one or more of the Borrowing Base Property Conditions or the provisions of
§8.13(a), such Real Estate Asset may be included in the Borrowing Base with the approval of the
Agent and the Majority Lenders.

(d) Upon the request of the Agent if a Default or Event of Default has occurred and is
continuing, the Borrower will use its commercially reasonable efforts to cause FP Redland Tech to
become a Subsidiary Guarantor and to secure its Subsidiary Guaranty with a mortgage on the Redlands
Property (including to obtain any necessary consents thereto under the Tech LP Agreement), all in
form in substance and in a manner satisfactory to the Agent.

§8.14. Further Assurances; Release of Liens.

(a) The Borrower and the Trust will, and will cause each Subsidiary Guarantor to, cooperate
with the Agent and the Lenders and execute such further instruments and documents as the Lenders or
the Agent shall reasonably request to carry out to their satisfaction the transactions contemplated
by this Agreement and the other Loan Documents.

(b) The Borrower shall deliver to the Agent, no later than 30 days following the Closing Date,
recorded copies of the discharges and / or releases of each of the mortgages, deeds of trust,
collateral assignments of leases and UCC financing statements relating to the Eligible Borrowing
Base Properties, including, without limitation, terminations of the Liens specified in Schedule
7.3(a).

§8.15. Interest Rate Protection. In the event that the Borrower’s floating rate
Indebtedness that is not otherwise subject to interest rate protection arrangements at any time
exceeds twenty-five percent (25%) of Consolidated Gross Asset Value, the Borrower shall obtain and
maintain in effect interest rate protection arrangements (by means of hedging techniques or
vehicles such as interest rate swaps, interest rate caps, interest rate corridors or interest rate
collars, in each case to be capped at a rate reasonably satisfactory to the Agent and otherwise in
form and substance reasonably satisfactory to the Agent) for a term and in an amount reasonably
satisfactory to the Agent. Once obtained, the Borrower shall maintain such arrangements in full
force and effect as provided therein, and shall not, without the approval of the Agent, modify,
terminate, or transfer such arrangements during the period in which the Borrower’s floating rate
Indebtedness exceeds twenty-five percent (25%) of Consolidated Gross Asset Value.

 

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§8.16. Environmental Indemnification. The Borrower covenants and agrees that it will
indemnify and hold the Agent and each Lender, and each of their respective Affiliates, harmless
from and against any and all claims, expense, damage, loss or
liability incurred by the Agent or any Lender (including all reasonable costs of legal
representation incurred by the Agent or any Lender, but excluding, as applicable, for the Agent or
a Lender any claim, expense, damage, loss or liability as a result of the gross negligence or
willful misconduct of the Agent or such Lender or any of their respective Affiliates) relating to
(a) any Release or threatened Release of Hazardous Substances on any Real Estate Asset; (b) any
violation of any Environmental Laws with respect to conditions at any Real Estate Asset or the
operations conducted thereon; (c) the investigation or remediation of off-site locations at which
the Borrower, a Subsidiary Guarantor, the Trust or any of their respective Subsidiaries or their
predecessors are alleged to have directly or indirectly disposed of Hazardous Substances; or (d)
any action, suit, proceeding or investigation brought or threatened with respect to any Hazardous
Substances relating to Real Estate Assets (including, but not limited to, claims with respect to
wrongful death, personal injury or damage to property). It is expressly acknowledged by the
Borrower and the Subsidiary Guarantors that, notwithstanding the introductory paragraph of this §8,
this covenant of indemnification shall survive the repayment of the amounts owing under the Notes
and this Agreement and the termination of this Agreement and the obligations of the Lenders
hereunder and shall inure to the benefit of the Agent and the Lenders and their respective
Affiliates, their respective successors, and their respective assigns under the Loan Documents
permitted under this Agreement.

§8.17. Response Actions. The Borrower covenants and agrees that if any Release or
disposal of Hazardous Substances shall occur or shall have occurred on any Real Estate Asset owned
directly or indirectly by the Borrower, any of the Subsidiary Guarantors or the Trust, in violation
of applicable Environmental Laws, the Borrower will cause the prompt containment and removal of
such Hazardous Substances and remediation of such Real Estate Asset as necessary to comply with all
Environmental Laws or to preserve the value of any applicable Eligible Borrowing Base Property.

§8.18. Environmental Assessments. If the Agent reasonably believes, after discussion
with the Borrower and review of any environmental reports provided by the Borrower, that a
Disqualifying Environmental Event has occurred with respect to any one or more of the Eligible
Borrowing Base Properties, whether or not a Default or an Event of Default shall have occurred, the
Agent may, from time to time, for the purpose of assessing and determining whether a Disqualifying
Environmental Event has in fact occurred, cause the Borrower to obtain one or more environmental
assessments or audits of such Eligible Borrowing Base Property prepared by a hydrogeologist, an
independent engineer or other qualified consultant or expert approved by the Agent to evaluate or
confirm (i) whether any Hazardous Substances are present in the soil or water at such Eligible
Borrowing Base Property and (ii) whether the use and operation of such Eligible Borrowing Base
Property complies with all Environmental Laws. Environmental assessments may include without
limitation detailed visual inspections of such Eligible Borrowing Base Property including, without
limitation, any and all storage areas, storage tanks, drains, dry wells and leaching areas, and, if
and to the extent reasonable,
appropriate and required pursuant to applicable Environmental Laws, the taking of soil samples,
surface water samples and ground water samples, as well as such other investigations or analyses as
the Agent deems appropriate. All such environmental assessments shall be at the sole cost and
expense of the Borrower.

 

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§8.19. Employee Benefit Plans.

(a) Notice. The Borrower and the Trust will notify the Agent (with copies to the
Agent for each Lender) at least thirty (30) days prior to the establishment of any Employee Benefit
Plan, Multiemployer Plan or Guaranteed Pension Plan by any of them or any of their respective ERISA
Affiliates other than those disclosed on Schedule 7.16 attached hereto or disclosed in the
SEC Filings, and neither the Borrower nor the Trust will establish any Employee Benefit Plan,
Multiemployer Plan or Guaranteed Pension Plan which could reasonably be expected to have a material
adverse effect on FPLP, the Trust or any member of the Potomac Group.

(b) In General. Each Employee Benefit Plan maintained by the Borrower, the Trust or
any of their respective ERISA Affiliates will be operated in compliance with the provisions of
ERISA and, to the extent applicable, the Code, including but not limited to the provisions
thereunder respecting prohibited transactions.

(c) Terminability of Welfare Plans. With respect to each Employee Benefit Plan
maintained by the Borrower, the Trust or any of their respective ERISA Affiliates which is an
employee welfare benefit plan within the meaning of §3(l) or §3(2)(B) of ERISA, the Borrower, the
Trust, or any of their respective ERISA Affiliates, as the case may be, shall have the right to
terminate each such plan at any time (or at any time subsequent to the expiration of any applicable
bargaining agreement) without liability other than liability to pay claims incurred prior to the
date of termination.

(d) Unfunded or Underfunded Liabilities. The Borrower and the Trust will not at any
time have accruing or accrued unfunded or underfunded liabilities with respect to any Employee
Benefit Plan, Guaranteed Pension Plan or Multiemployer Plan, or permit any condition to exist under
any Multiemployer Plan that would create a withdrawal liability.

§8.20. No Amendments to Certain Documents. The Borrower, the Subsidiary Guarantors
and the Trust will not at any time cause or permit its certificate of limited partnership,
agreement of limited partnership (including without limitation the Agreement of Limited Partnership
of the Borrower), articles of incorporation, by-laws, operating agreement or other Organizational
Documents, the Tech LP Agreement or any of the Purchase Transaction Documents, as the case may be,
to be modified, amended or supplemented in any respect whatever, without (in each case) the express
prior written consent or approval of the Agent, if such changes could reasonably be expected to
affect
the Trust’s REIT status or otherwise adversely affect the rights of the Agent and the Lenders
hereunder or under any other Loan Document.

 

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§8.21. Regulations U and X. No portion of any Loan shall be used for the purpose of
purchasing or carrying any “margin security” or “margin stock” as such terms are used in
Regulations U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 221
and 224, or to extend credit to others for the purpose of purchasing or carrying any margin
security or margin stock.

§9. CERTAIN NEGATIVE COVENANTS OF THE BORROWER. The Borrower and the Trust, on their
own behalf and on behalf of their respective Subsidiaries, jointly and severally covenant and agree
that neither the Borrower, the Subsidiary Guarantors, FP Redland Tech nor the Trust will:

§9.1. Restrictions on Indebtedness. Create, incur, assume, guarantee or be or remain
liable, contingently or otherwise, with respect to any Indebtedness other than:

(a) Indebtedness arising under any of the Loan Documents, the Unsecured Revolver Agreement,
the Existing Term Loan Agreement and the 2008 Term Loan Agreement;

(b) current liabilities of the Borrower, FP Redland Tech or the Subsidiary Guarantors incurred
in the ordinary course of business other than through (i) the borrowing of money, or (ii) the
obtaining of credit except for credit on an open account basis customarily extended and in fact
extended in connection with normal purchases of goods and services;

(c) Indebtedness (other than relating to the Eligible Borrowing Base Properties) in an
aggregate amount not in excess of $250,000 in respect of taxes, assessments, governmental charges
or levies and claims for labor, materials and supplies to the extent that payment therefor shall
not at the time be required to be made in accordance with the provisions of §8.9;

(d) Indebtedness (other than relating to the Eligible Borrowing Base Properties) in an
aggregate amount not in excess of $1,000,000 in respect of judgments or awards that have been in
force for less than the applicable period for taking an appeal so long as execution is not levied
thereunder or in respect of which, at the time, a good faith appeal or proceeding for review is
being prosecuted, and in respect of which a stay of execution shall have been obtained pending such
appeal or review;

(e) endorsements for collection, deposit or negotiation incurred in the ordinary course of
business;

 

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(f) Secured Indebtedness of the Borrower incurred after the Closing Date, provided
that: (i) such Indebtedness is Without Recourse to the Borrower, the Trust or any Subsidiary
Guarantor and is Without Recourse to any Eligible Borrowing Base Property or to any of the
respective assets or Equity Interests of any of the Borrower, the Trust or any Subsidiary Guarantor
other than to the specific Real Estate Asset or Assets (other than any Eligible Borrowing Base
Property) acquired, refinanced or rehabilitated with the proceeds of such Indebtedness, except
that, notwithstanding the foregoing, a portion of such Indebtedness at any time outstanding not in
excess of fifteen percent (15%) of Consolidated Gross Asset Value may be Recourse Indebtedness of
the Borrower so long as such Indebtedness is not secured by any Eligible Borrowing Base Property or
any Eligible Unencumbered Property (as defined in the Unsecured Revolver Agreement) or a pledge of
the equity of any Subsidiary that owns an Eligible Borrowing Base Property or an Eligible
Unencumbered Property (as defined in the Unsecured Revolver Agreement), (ii) at the time any such
Indebtedness is incurred and after giving effect thereto, there exists no Default or Event of
Default hereunder and (iii) such Indebtedness, in the aggregate, does not exceed forty percent
(40%) of Consolidated Gross Asset Value (it being acknowledged, for the avoidance of doubt, that
the outstanding Indebtedness hereunder, under the Existing Term Loan Agreement and under the 2008
Term Loan Agreement shall count against the fifteen percent (15%) basket referred to in clause (i)
above);

(g) contingent liabilities of the Borrower or the Subsidiary Guarantors disclosed in the
financial statements referred to in §7.4 or on Schedule 9.1(g) hereto, and such other
contingent liabilities of the Borrower having a combined aggregate potential liability of not more
than $1,000,000 at any time;

(h) Indebtedness of the Borrower or the Subsidiary Guarantors for the purchase price of
capital assets (other than Real Estate Assets but including Indebtedness in respect of Capitalized
Leases) incurred in the ordinary course of business, provided that the aggregate principal
amount of Indebtedness permitted by this clause (h) shall not exceed $500,000 at any time
outstanding; and

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

 

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Notwithstanding the foregoing, (x) in no event shall the Borrower, the Trust or any of their
respective Subsidiaries incur or have outstanding unhedged variable rate Indebtedness in excess of
twenty-five percent (25%) of Consolidated Gross Asset Value; and (y) other than Indebtedness
permitted under §§9.1(b), (d) and (e), in no event will FP Redland Tech incur or suffer to exist
any Indebtedness (including, without limitation, any guaranty of Indebtedness for borrowed money)
in favor of any Person.

It is understood and agreed that the provisions of this §9.1 shall not apply to Indebtedness
of any Partially-Owned Entity which is Without Recourse to the Borrower, any Subsidiary Guarantor
or the Trust, or any of their respective assets. The terms and provisions of this §9.1 are in
addition to, and not in limitation of, the covenants set forth in §10.

§9.2. Restrictions on Liens, Etc. (a) Create or incur or suffer to be created or
incurred or to exist any lien, encumbrance, mortgage, pledge, attachment, security interest or
other rights of third parties of any kind upon any of the Eligible Borrowing Base Properties, the
Equity Interests of the Borrower, FP Redland Tech or any Subsidiary Guarantor or any other
Collateral, whether now owned or hereafter acquired, or upon the income or profits therefrom or the
Distributions attributable thereto, as applicable; (b) acquire, or agree or have an option to
acquire, any property or assets upon conditional sale or other title retention or purchase money
security agreement, device or arrangement in connection with the Pledged Equity Interests or the
operation of the Eligible Borrowing Base Properties; (c) suffer to exist with respect to the
Pledged Equity Interests or the Eligible Borrowing Base Properties, any taxes, assessments,
governmental charges and claims for labor, materials and supplies for which payment thereof is not
being contested or for which payment notwithstanding a contest is required to be made in accordance
with the provisions of §8.9 and has not been timely made; or (d) sell, assign, pledge or otherwise
transfer for security any accounts, contract rights, general intangibles, chattel paper or
instruments, with or without recourse, relating to the Eligible Borrowing Base Properties, the
Equity Interests of the Borrower, FP Redland Tech or any Subsidiary Guarantor or any other
Collateral (the foregoing types of liens and encumbrances described in clauses (a) through (d)
being sometimes referred to herein collectively as “Liens”), provided that the Borrower and
the Subsidiary Guarantors may create or incur or suffer to be created or incurred or to exist:

(i) Liens securing taxes, assessments, governmental charges or levies which are not yet due
and payable or which are not yet required to be paid under §8.9;

(ii) Liens arising out of deposits or pledges made in connection with, or to secure payment
of, worker’s compensation, unemployment insurance, old age pensions or other social security
obligations; and deposits with utility companies and other similar deposits made in the ordinary
course of business;

 

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(iii) Liens (other than affecting the Eligible Borrowing Base Properties or the Pledged Equity
Interests) in respect of judgments or awards, the Indebtedness with respect to which is not
prohibited by §9.1(d);

(iv) Encumbrances on properties consisting of easements, rights of way, covenants, zoning and
other land-use restrictions, building restrictions, restrictions on the use of real property and
defects and irregularities in the title thereto; landlord’s or lessor’s Liens under Leases to which
the Borrower is a party or bound; purchase options granted at a price not less than the market
value of such property; and other minor Liens or encumbrances on properties, none of which
interferes materially and adversely with the use of the property affected in the ordinary conduct
of the business of the Borrower, and which matters (x) do not individually or in the aggregate have
a material adverse effect on the business of FPLP, the Trust or any member of the Potomac Group and
(y) do not make title to such property unmarketable by the conveyancing standards in effect where
such property is located;

(v) any Leases entered into in the ordinary course of business;

(vi) as to Real Estate Assets which are acquired after the date of this Agreement, Liens and
other encumbrances or rights of others which exist on the date of acquisition and which do not
otherwise constitute a breach of this Agreement; provided that nothing in this clause (vi)
shall be deemed or construed to permit an Eligible Borrowing Base Property or any Pledged Equity
Interests to be subject to a Lien to secure Indebtedness;

(vii) Liens affecting the Eligible Borrowing Base Properties in respect of judgments or awards
that are under appeal or have been in force for less than the applicable period for taking an
appeal, so long as execution is not levied thereunder or in respect of which, at the time, a good
faith appeal or proceeding for review is being diligently prosecuted, and in respect of which a
stay of execution shall have been obtained pending such appeal or review; provided that the
Borrower shall have obtained a bond or insurance or made other arrangements with respect thereto,
in each case reasonably satisfactory to the Agent;

(viii) Liens securing Indebtedness for the purchase price of capital assets (other than Real
Estate Assets but including Indebtedness in respect of Capitalized Leases for equipment and other
equipment leases) to the extent not otherwise prohibited by §9.1(h);

(ix) other Liens (other than affecting Eligible Unencumbered Properties, Eligible Borrowing
Base Properties or Pledged Equity Interests) in connection with secured Indebtedness permitted
under §9.1(f); and

 

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(x) without prejudice to the provisions of Section 14.1(n), the JV Springing Rights, it being
acknowledged that it is the intent of the parties that in the event that Perseus at any time
obtains an actual security interest in any of the FP Redland Tech Equity Interests pursuant to the
provisions of Section 3.8 of the Tech LP Agreement, the granting of such security interest to
Perseus by the Defaulting Partner (as defined in the Tech LP Agreement) will constitute an Event of
Default hereunder.

Nothing contained in this §9.2 shall restrict or limit the Borrower or any of their respective
Wholly-owned Subsidiaries from creating a Lien on any Real Estate Asset which is not an Eligible
Borrowing Base Property and otherwise in compliance with the other terms of this Agreement.

The Trust shall not create or incur or suffer to be created or incurred any Lien on any of its
directly-owned properties or assets, including, in any event, its general partner interests and
limited partner interests in the Borrower. None of the Trust, the Borrower or any Subsidiary
Guarantor shall create or incur or suffer to be created or incurred any Lien on the Pledged Equity
Interests.

§9.3. Restrictions on Investments. Make or permit to exist or to remain outstanding
any Investment except, with respect to the Borrower and its Subsidiaries only, Investments in:

(a) marketable direct or guaranteed obligations of the United States of America that mature
within one (1) year from the date of purchase (including investments in securities guaranteed by
the United States of America such as securities in so-called “overseas private investment
corporations”);

(b) demand deposits, certificates of deposit, bankers acceptances and time deposits of United
States banks having total assets in excess of $1,000,000,000;

(c) securities commonly known as “commercial paper” issued by a corporation organized and
existing under the laws of the United States of America or any state thereof that at the time of
purchase have been rated and the ratings for which are not less than “P 1” if rated by Moody’s, and
not less than “A 1” if rated by S&P;

(d) Investments existing on the Closing Date and listed in the financial statements referred
to in §7.4;

(e) other Investments hereafter in connection with the acquisition and development of
Permitted Properties by the Borrower or any Wholly-owned Subsidiary of the Borrower,
provided that the aggregate amounts actually invested by Borrower (or if not invested
directly by Borrower, actually invested by an Affiliate of the Borrower for which the Borrower has
any funding obligation) and such Wholly-owned Subsidiary at any time in Real Estate Assets under
Development (including all development costs) will
not exceed ten percent (10%) of the Consolidated Gross Asset Value at the time of any such
Investment; and Investments in raw land intended to be developed by the Borrower or any
Wholly-owned Subsidiary of the Borrower for use as a Permitted Property, provided that the
aggregate amounts actually invested by Borrower (or if not invested directly by Borrower, actually
invested by an Affiliate of the Borrower for which the Borrower has any funding obligation) and
such Wholly-owned Subsidiary at any time in raw land will not exceed five percent (5%) of the
Consolidated Gross Asset Value at the time of any such Investment;

 

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(f) any Investments now or hereafter made in any Wholly-owned Subsidiary; and Investments now
or hereafter made in any Partially-Owned Entity (or other Person for which the Borrower has any
funding obligation) so long as such Investment is made in connection with Permitted Properties and
provided that the aggregate amounts actually invested by Borrower (or if not invested
directly by Borrower, actually invested by an Affiliate of the Borrower for which the Borrower has
any funding obligation) and such Wholly-owned Subsidiary at any time in any Partially-Owned Entity
(or other such Person) will not exceed twenty percent (20%) of the Consolidated Gross Asset Value
at the time of any such Investment; and

(g) Investments in respect of (1) equipment, inventory and other tangible personal property
acquired in the ordinary course of business, (2) current trade and customer accounts receivable for
services rendered in the ordinary course of business and payable in accordance with customary trade
terms, (3) advances in the ordinary course of business to employees for travel expenses, drawing
accounts and similar expenditures, and (4) prepaid expenses made in the ordinary course of
business; and

(h) Investments by the Borrower in Mortgage Notes, provided that the aggregate
investment in such Mortgage Notes will not exceed five percent (5%) of the Consolidated Gross Asset
Value at the time of any such Investment.

In no event shall the aggregate of Investments made pursuant to subclauses (e), (f), (g) and
(h) above exceed twenty-five percent (25%) of Consolidated Gross Asset Value at any time.

Notwithstanding the foregoing, the Trust shall be permitted to make and maintain Investments
in the Borrower and the Trust shall contribute to the Borrower, promptly upon, and in any event
within 3 Business Days of, the Trust’s receipt thereof, 100% of the aggregate proceeds received by
the Trust in connection with any offering of stock or debt in the Trust (net of fees and expenses
customarily incurred in such offerings).

§9.4. Merger, Consolidation and Disposition of Assets; Assets of the Trust.

(a) Become a party to any merger, consolidation, spin-off or other material business change
without the prior written approval of the Majority Lenders
(other than (x) the merger or consolidation of one or more Wholly-owned Subsidiaries with and into
the Borrower or (y) the merger or consolidation of two or more Wholly owned Subsidiaries of the
Borrower so long as, in each case, no Default or Event of Default has occurred and is continuing,
or would occur and be continuing after giving effect to such merger or consolidation); or

 

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(b) (i) sell, transfer or otherwise dispose of the Redlands Property or any Pledged Equity
Interests or (ii) sell, transfer or otherwise dispose of any other Real Estate Assets or other
property, including any equity interest in any Person in any one or more transactions in any
12-month period having a sales price (net of any Indebtedness secured by a Lien on such Real Estate
Assets, if any), in an amount in excess of twenty percent (20%) of Consolidated Gross Asset Value
(collectively and individually, “Sell” or a “Sale”) or grant a Lien to secure Indebtedness (an
“Indebtedness Lien”) in any one or more transactions in a 12-month period in an amount in excess of
twenty percent (20%) of Consolidated Gross Asset Value unless, in each such event, the Majority
Lenders have given their prior written consent thereto. In addition, prior to any Sale or grant of
an Indebtedness Lien, the Borrower shall have provided to the Agent (with copies to the Agent for
each Lender) a compliance certificate in the form of Exhibit C, hereto signed by the chief
financial officer or chief accounting officer of the Borrower, setting forth in reasonable detail
computations evidencing compliance with the covenants contained in §10 hereof and certifying that
no Default or Event of Default would exist or occur and be continuing after giving effect to all
such proposed Sales or Indebtedness Liens (and the use of proceeds of such Sales or Indebtedness
Liens to pay Indebtedness outstanding hereunder).

§9.5. Compliance with Environmental Laws. (a) Use any of the Real Estate Assets or
any portion thereof as a facility for the handling, processing, storage or disposal of Hazardous
Substances except for quantities of Hazardous Substances used in the ordinary course of business
and in compliance with all applicable Environmental Laws, (b) cause or permit to be located on any
of the Real Estate Assets any underground tank or other underground storage receptacle for
Hazardous Substances except in compliance with Environmental Laws, (c) generate any Hazardous
Substances on any of the Real Estate Assets except in compliance with Environmental Laws, or (d)
conduct any activity at any Real Estate Asset or use any Real Estate Asset in any manner so as to
cause a Release in violation of applicable Environmental Laws.

§9.6. Distributions.

(a) The Borrower will not make or declare (i) annual Distributions in excess of 95% of “funds
from operations”; or (ii) any Distributions during any period after any monetary Event of Default
has occurred; provided, however, (a) that the Borrower may at all times (including
while an Event of Default is continuing) make Distributions to the extent (after taking into
account all available funds of the Trust from all other sources) required in order to enable the
Trust to continue to qualify as a REIT
and (b) in the event that the Borrower cures any such Event of Default in clause (ii) above and the
Agent has accepted such cure prior to accelerating the Loan, the limitation of clause (ii) above
shall cease to apply with respect to such Event of Default.

 

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(b) The Trust will not, during any period when any monetary Event of Default has occurred and
is continuing, make any Distributions in excess of the minimum Distributions required to be made by
the Trust in order to maintain its status as a REIT.

(c) Except pursuant to contracts or agreements set forth on Schedule 9.6, neither the Borrower
nor any Subsidiary Guarantor will enter into any contract or agreement pursuant to which it agrees
not to pledge its legal, equitable or beneficial right, title and interest in and to Equity
Interests in or Distributions from its Subsidiaries.

(d) The Borrower will cause any and all Distributions made by FP Redland Tech during the
continuance of an Event of Default to be made into a deposit account maintained with and pledged to
the Agent as Collateral.

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

§10. FINANCIAL COVENANTS; COVENANTS REGARDING ELIGIBLE UNENCUMBERED PROPERTIES. The
Borrower and the Trust, on their own behalf and on behalf of their respective Subsidiaries, jointly
and severally covenant and agree that:

§10.1. Consolidated Total Leverage Ratio. At all times during each fiscal quarter
ending on or after December 31, 2010, Consolidated Total Indebtedness shall not exceed sixty-two
and one half of one percent (62.5%) of Consolidated Gross Asset Value. This covenant shall be
tested quarterly as of the last day of the applicable quarter.

§10.2. Consolidated Debt Yield. At all times, as tested at the end of each fiscal
quarter during each fiscal quarter ending on or after December 31, 2010, the Consolidated Debt
Yield shall not be less than ten and one half of one percent (10.5%).

§10.3. Fixed Charge Coverage Ratio. At all times, as tested at the end of each fiscal
quarter, the ratio of (i) Adjusted EBITDA for the four consecutive fiscal quarters
ending on the last day of such fiscal quarter to (ii) Consolidated Fixed Charges for the four
consecutive fiscal quarters ending on the last day of such fiscal quarter must exceed 1.50 to 1.0.

 

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§10.4. Net Worth. At all times, as tested at the end of each fiscal quarter and any
other date of measurement, the Consolidated Tangible Net Worth of the Borrower and its Subsidiaries
shall not be less than the sum of (i) $370,000,000 plus (ii) 80% of the aggregate proceeds
received by the Trust (net of fees and expenses customarily incurred in transactions of such type)
in connection with any offering of stock in the Trust, plus (iii) 80% of the aggregate
value of operating units issued by the Borrower in connection with asset or stock acquisitions
(valued at the time of issuance by reference to the terms of the agreement pursuant to which such
units are issued), in each case after the Closing Date and on or prior to the date such
determination of Consolidated Net Worth is made.

§10.5. Unencumbered Pool Leverage. At all times, as tested at the end of each fiscal
quarter and any other date of measurement, (i) for the fiscal quarter ending December 31, 2010
through the fiscal quarter ending September 30, 2011, the Borrower shall not permit Unsecured
Consolidated Total Indebtedness as at the last day of each fiscal quarter to exceed sixty-two and
one half of one percent (62.5%) of the aggregate Value of Unencumbered Properties on the last day
of such fiscal quarter, and (ii) for each fiscal quarter ending on or after December 31, 2011, the
Borrower shall not permit Unsecured Consolidated Total Indebtedness as at the last day of any
fiscal quarter to exceed sixty percent (60%) of the aggregate Value of Unencumbered Properties on
the last day of such fiscal quarter. For purposes of the covenant set forth in this §10.5, any
New Debt incurred by the Borrower after the date hereof shall be deemed to be Unsecured
Consolidated Total Indebtedness.

§10.6. Unencumbered Pool Debt Service Coverage Ratio. At all times, as tested at the
end of each fiscal quarter, the ratio of (i) Adjusted Net Operating Income for the applicable
quarter, annualized; divided by (ii) the Unsecured Interest Expense for the applicable quarter,
annualized, shall not be less than 1.75 to 1.0.

§10.7. Occupancy. Eligible Unencumbered Properties (other than any Real Estate Asset
Under Development included in the Unencumbered Pool) shall at all times maintain a stabilized
occupancy of 80% in the aggregate, provided that (i) any Eligible Unencumbered Property acquired
after the date hereof during the first half of any quarter shall be excluded from the foregoing
calculation for the fiscal quarter in which it was acquired and for the immediately following
fiscal quarter, and (ii) any Eligible Unencumbered Property acquired after the date hereof during
the last half of any quarter shall be excluded from the foregoing calculation for the fiscal
quarter in which it was acquired and for the immediately two following fiscal quarters.

 

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§11. 950 F STREET INVESTMENT. In connection with the 950 F Street Investment, the
Borrower, through a Subsidiary, intends to acquire a preferred
equity interest in Jemal LLC (as defined in Schedule 3). Jemal LLC is the sole
managing member of a special purpose limited liability company (“Jemal SPE”) that owns the
office building located at 950 F Street, NW, Washington, DC (the “F Street Office
Building”). The 950 F Street Investment will be made substantially on the terms outlined by
the Borrower in Schedule 3. In addition, the 950 F Street Investment will, in accordance
with GAAP, be treated as Indebtedness by the Borrower, and accordingly, the Borrower has requested
that for purposes of this Agreement, including the covenants set forth in §10 and the related
definitions contained therein, the 950 F Street Investment be treated as an acquisition of
Indebtedness and accounted for at its cost basis (similar to the treatment of an acquisition of a
Mortgage Note) and not be treated as an Investment in a Partially-Owned Entity (the “Cost Basis
Treatment”).

The parties hereby agree (x) that the 950 F Street Investment may be made by the Borrower (and its
applicable Subsidiary) and (y) to the Cost Basis Treatment for the 950 F Street Investment, subject
in each case to the satisfaction of following conditions in a manner satisfactory to the Agent:
(i) at the time of the 950 F Street Investment and after giving effect thereto, no Default or Event
of Default shall have occurred or be continuing, (ii) the F Street Office Building shall at all
times be a Permitted Property, (iii) the 950 F Street Investment be made on terms substantially
consistent with the terms outlined in Schedule 3, (iv) the Cost Basis Treatment for the 950
F Street Investment is permitted under GAAP, (v) after giving effect to the Cost Basis Treatment
for the 950 F Street Investment, the Borrower is in compliance with §9.3(h) of the Credit Agreement
(it being agreed that, for so long as it remains outstanding, the 950 F Street Investment shall be
deemed to be a “Mortgage Note” for purposes of determining compliance with §9.3(h) of the Credit
Agreement), (vi) any Indebtedness to which the F Street Office Building, the Jemal SPE or Jemal LLC
is subject is and remains Without Recourse to the Borrower and its Subsidiaries and neither the
Borrower nor any of its Subsidiaries shall pledge any of its respective assets or properties in
support of any such Indebtedness, and (vii) the Borrower shall deliver to the Agent, at its
request, copies of each of the agreements and documents evidencing the 950 F Street Investment and
the transactions relating thereto (including, without limitation, operating agreements and loan
documents of the Jemal SPE).

§12. CONDITIONS TO THE FIRST ADVANCE. The obligations of any Lender to make the Term
Loan (and to maintain the existing outstanding Term Loan) shall be subject to the satisfaction of
the following conditions precedent on or prior to the Closing Date with, in each instance, the
Agent, acting on behalf of the Lenders, having approved in its sole discretion each matter
submitted to it in compliance with such conditions:

§12.1. Loan Documents. Each of the Loan Documents shall have been duly executed and
delivered by the respective parties thereto and shall be in full force and effect.

 

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§12.2. Certified Copies of Organization Documents. The Agent shall have received (i)
from the Borrower a copy, certified as of a recent date by a duly authorized officer of the Trust,
in its capacity as general partner of the Borrower, to be true and complete, of the Agreement of
Limited Partnership of FPLP and all other Organizational Documents or other agreements governing
the rights of the partners or other equity owners of the Borrower and each Subsidiary Guarantor,
and (ii) from the Trust a copy, certified as of a recent date by the appropriate officer of the
State of Maryland to be true and correct, of the corporate charter of the Trust, in each case along
with any other organization documents of the Borrower or the Trust and their respective general
partners, as the case may be, and each as in effect on the date of such certification.

§12.3. By-laws; Resolutions. All action on the part of the Borrower, each Subsidiary
Guarantor and the Trust necessary for the valid execution, delivery and performance by the
Borrower, the Subsidiary Guarantors and the Trust of this Agreement and the other Loan Documents to
which any of them is or is to become a party shall have been duly and effectively taken, and
evidence thereof satisfactory to the Agent shall have been provided to the Agent. The Agent shall
have received from the Trust true copies of its by-laws and the resolutions adopted by its board of
directors or trustees authorizing the transactions described herein and evidencing the due
authorization, execution and delivery of the Loan Documents to which the Trust and/or the Borrower
is a party, each certified by the secretary as of a recent date to be true and complete.

§12.4. Incumbency Certificate; Authorized Signers. The Agent shall have received from
the Trust an incumbency certificate, dated as of the Closing Date, signed by a duly authorized
officer of the Trust, the Borrower and/or each Subsidiary Guarantor, as applicable, and giving the
name of each individual who shall be authorized: (a) to sign, in the name and on behalf of the
Borrower, the Subsidiary Guarantors and the Trust, as the case may be, each of the Loan Documents
to which the Borrower, a Subsidiary Guarantor or the Trust is or is to become a party; (b) to make
the Completed Loan Request and Conversion Requests on behalf of the Borrower and (c) to give
notices and to take other action on behalf of the Borrower, the Subsidiary Guarantors or the Trust,
as applicable, under the Loan Documents.

§12.5. Opinion of Counsel Concerning Organization and Loan Documents. Each of the
Lenders and the Agent shall have received favorable opinions addressed to the Lenders and the Agent
in form and substance reasonably satisfactory to the Lenders and the Agent from Hogan Lovells US
LLP and, if any, state specific local counsel who are reasonably satisfactory to Agent, each as
counsel to the Borrower, each Subsidiary Guarantor, the Trust and their respective Subsidiaries
(including, without limitation, with respect to the Pledged Equity Interests and the Loan
Documents).

§12.6. Guarantees. The Trust Guaranty shall have been duly executed and delivered by
the Trust. The Subsidiary Guaranty shall have been duly executed and delivered by each Subsidiary
Guarantor.

 

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§12.7. Financial Analysis of Eligible Borrowing Base Properties; Diligence on Eligible
Borrowing Base Properties. Each of the Lenders shall have completed to its satisfaction a
financial analysis of each Eligible Borrowing Base Property. The Agent shall have received and be
satisfied with such due diligence materials it shall request with respect to any prospective
Eligible Borrowing Base Property, including information and documentation with respect to title,
survey, insurance, zoning, permitting and environmental matters.

§12.8. Inspection of Eligible Borrowing Base Properties. If requested by the Agent,
the Agent shall have completed to its satisfaction an inspection of the Eligible Borrowing Base
Properties at the Borrower’s expense. The Agent shall distribute to the Lenders any written
reports resulting from any such inspections.

§12.9. Certifications from Government Officials; UCC-11 Reports.

The Agent shall have received (i) certifications from government officials evidencing the
legal existence and good standing of the Borrower, each Subsidiary Guarantor and the Trust, along
with a certified copy of the Organizational Documents, in effect as of immediately prior to the
effectiveness of this Agreement and as amended on the Closing Date, filed with any Secretary of
State for the Borrower, each Subsidiary Guarantor and the Trust, all certified as of the Closing
Date or other recent date satisfactory to the Agent; and (ii) UCC-11 search results from the
appropriate jurisdictions for the Borrower, each Subsidiary Guarantor and the Trust.

§12.10. Proceedings and Documents; Purchase Transaction. All proceedings in
connection with the transactions contemplated by this Agreement, the other Loan Documents and all
other documents incident thereto shall be satisfactory in form and substance to each of the
Lenders and to the Agent’s counsel, and the Agent, each of the Lenders and such counsel shall have
received all information and such counterpart originals or certified or other copies of such
documents as the Agent may reasonably request. Without limitation of the foregoing, the
acquisition contemplated by the Purchase Transaction Documents shall have been consummated pursuant
to the terms thereof, in a manner and pursuant to documentation (including evidence of any
necessary consents) satisfactory to the Agent.

§12.11. Fees. The Borrower shall have paid to the Agent, for the accounts of the
Lenders or for its own account, as applicable, all of the fees and expenses that are due and
payable as of the Closing Date in accordance with this Agreement or any separate fee letter entered
into by the Borrower and the Trust and the Agent.

§12.12. Closing Certificate. The Borrower and the Guarantor shall have delivered a
Closing Certificate to the Agent, in form and substance satisfactory to the Agent, including,
without limitation, a certification that as of the Closing Date, both before and
after giving effect to the making of the Term Loan, neither the Borrower nor any Subsidiary
Guarantor is in default under any Indebtedness for borrowed money or similar obligations having a
principal amount in excess of $5,000,000.

 

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§12.13. Other Matters. The Borrower, the Subsidiary Guarantors and the Trust shall
have delivered to the Agent, in form and substance satisfactory to the Agent, such other
information, documents, certificates and other items reasonably requested by the Agent.

§13. [RESERVED].

§14. EVENTS OF DEFAULT; ACCELERATION; ETC.

§14.1. Events of Default and Acceleration. If any of the following events (“Events of
Default”) shall occur:

(a) the Borrower shall fail to pay any principal of any Loans when the same shall become due
and payable, whether at the stated date of maturity or any accelerated date of maturity or at any
other date fixed for payment;

(b) the Borrower shall fail to pay any interest on the Loans or any other sums due hereunder
or under any of the other Loan Documents or any fee letter (including, without limitation, amounts
due under §8.16) when the same shall become due and payable, and such failure continues for three
(3) days;

(c) the Borrower, any Subsidiary Guarantor, the Trust or any of their respective Subsidiaries
shall fail to comply, or to cause the Trust to comply, as the case may be, with any of the
respective covenants contained in the following: §8.1 (except with respect to principal, interest
and other sums covered by clauses (a) or (b) above); §8.2; §§8.4 through §8.10, inclusive; §8.12;
§8.13; §8.14(b); §8.15; §8.19; §8.20; §9; §10 and §11;

(d) the Borrower, any Subsidiary Guarantor, the Trust or any of their respective Subsidiaries
shall fail to perform any other term, covenant or agreement contained herein or in any of the other
Loan Documents (other than those specified elsewhere in this §14) and such failure continues for
thirty (30) days;

(e) any representation or warranty made by or on behalf of the Borrower, any Subsidiary
Guarantor, the Trust or any of their respective Subsidiaries in this Agreement or any of the other
Loan Documents shall prove to have been false in any material respect upon the date when made or
deemed to have been made or repeated;

 

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(f) (i) the Borrower, any Subsidiary Guarantor, the Trust or any of its Subsidiaries or, to
the extent of Recourse to the Borrower, the Subsidiary Guarantor, the
Trust or such Subsidiaries thereunder, any Partially-Owned Entity or other of their respective
Affiliates, shall fail to pay at maturity, or within any applicable period of grace, any
Indebtedness for borrowed money or credit received or in respect of any Capitalized Leases, which
is in excess of (A) $25,000,000, either individually or in the aggregate, if such Indebtedness is
Without Recourse and (B) $5,000,000, either individually or in the aggregate, if such Indebtedness
is Recourse, or fail to observe or perform any material term, covenant, condition or agreement
contained in any agreement, document or instrument by which it is bound evidencing, securing or
otherwise relating to such Indebtedness or Recourse obligations, evidencing or securing borrowed
money or credit received or in respect of any Capitalized Leases for such period of time (after the
giving of appropriate notice if required) as would permit the holder or holders thereof or of any
obligations issued thereunder in excess of (A) $25,000,000, either individually or in the
aggregate, if such Indebtedness is without Recourse and (B) $5,000,000, either individually or in
the aggregate, if such Indebtedness is Recourse, to accelerate the maturity thereof; or (ii) any
Event of Default shall occur under (and as defined in, respectively) the Unsecured Revolver
Agreement, the Existing Term Loan Agreement or the 2008 Term Loan Agreement;

(g) any of FPLP, any Subsidiary Guarantor, the Trust or any of their respective Subsidiaries
shall make an assignment for the benefit of creditors, or admit in writing its inability to pay or
generally fail to pay its debts as they mature or become due, or shall petition or apply for the
appointment of a trustee or other custodian, liquidator or receiver of any of FPLP, a Subsidiary
Guarantor, the Trust or any of their respective Subsidiaries or of any substantial part of the
properties or assets of any of such parties or shall commence any case or other proceeding relating
to any of FPLP, a Subsidiary Guarantor, the Trust or any of their respective Subsidiaries under any
bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or
liquidation or similar law of any jurisdiction, now or hereafter in effect, or shall take any
action to authorize or in furtherance of any of the foregoing, or if any such petition or
application shall be filed or any such case or other proceeding shall be commenced against any of
FPLP, a Subsidiary Guarantor, the Trust or any of their respective Subsidiaries and (i) any of
FPLP, a Subsidiary Guarantor, the Trust or any of their respective Subsidiaries shall indicate its
approval thereof, consent thereto or acquiescence therein or (ii) any such petition, application,
case or other proceeding shall continue undismissed, or unstayed and in effect, for a period of
forty-five (45) days;

(h) a decree or order is entered appointing any trustee, custodian, liquidator or receiver or
adjudicating any of FPLP, a Subsidiary Guarantor, the Trust or any of their respective Subsidiaries
bankrupt or insolvent, or approving a petition in any such case or other proceeding, or a decree or
order for relief is entered in respect of any of FPLP, a Subsidiary Guarantor, the Trust or any of
their respective Subsidiaries in an involuntary case under federal bankruptcy laws as now or
hereafter constituted;

 

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(i) there shall remain in force, undischarged, unsatisfied and unstayed, for more than thirty
(30) days, whether or not consecutive, any uninsured final judgment against any of FPLP, a
Subsidiary Guarantor, the Trust or any of their respective Subsidiaries that, with other
outstanding uninsured final judgments, undischarged, unsatisfied and unstayed, against any of such
parties exceeds in the aggregate $2,000,000;

(j) any of the Loan Documents or any material provision of any Loan Document shall be
canceled, terminated, revoked or rescinded otherwise than in accordance with the terms thereof or
with the express prior written agreement, consent or approval of the Agent, or any action at law,
suit or in equity or other legal proceeding to make unenforceable, cancel, revoke or rescind any of
the Loan Documents shall be commenced by or on behalf of the Borrower or a Subsidiary Guarantor or
any of their Subsidiaries or the Trust or any of its Subsidiaries, or any court or any other
governmental or regulatory authority or agency of competent jurisdiction shall make a determination
that, or issue a judgment, order, decree or ruling to the effect that, any one or more of the Loan
Documents is illegal, invalid or unenforceable as to any material terms thereof; or the Agent shall
fail to have a perfected first-priority security interest in any of the Collateral;

(k) any “Event of Default” or default (after notice and expiration of any period of grace, to
the extent provided, as defined or provided in any of the other Loan Documents, shall occur and be
continuing;

(l) with respect to any Guaranteed Pension Plan, an ERISA Reportable Event shall have occurred
and the Majority Lenders shall have determined in their reasonable discretion that such event
reasonably could be expected to result in liability of the Borrower or any of its Subsidiaries or
the Trust or any of its Subsidiaries to the PBGC or such Guaranteed Pension Plan in an aggregate
amount exceeding $2,000,000 and such event in the circumstances occurring reasonably could
constitute grounds for the termination of such Guaranteed Pension Plan by the PBGC or for the
appointment by the appropriate United States District Court of a trustee to administer such
Guaranteed Pension Plan; or a trustee shall have been appointed by the United States District Court
to administer such Plan; or the PBGC shall have instituted proceedings to terminate such Guaranteed
Pension Plan;

(m) subject to the Borrower’s ability to remove Real Estate Assets from the Borrowing Base
Pool in accordance with the provisions set forth below in this §14, the failure of any of the Real
Estate Assets being included from time to time as part of the Borrowing Base Pool to comply with
any of the conditions set forth in the definition of Eligible Borrowing Base Properties;

 

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(n) the occurrence of any transaction in which any “person” or “group” (within the meaning of
Section 13(d) and 14(d)(2) of the Securities Exchange
Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock then
outstanding of the Trust ordinarily entitled to vote in the election of directors, empowering such
“person” or “group” to elect a majority of the Board of Directors or Board of Trustees of the
Trust, who did not have such power before such transaction; or during any twelve-month period on or
after the Closing Date, individuals who at the beginning of such period constituted the Board of
Trustees of the Trust (together with any new directors whose election by the Board of Trustees or
whose nomination for election by the shareholders of the Trust was approved by a vote of at least a
majority of the members of the Board of Trustees then in office who either were members of the
Board of Trustees at the beginning of such period or whose election or nomination for election was
previously so approved) ceased for any reason to constitute a majority of the members of the Board
of Trustees of the Trust then in office; or the occurrence of any “Capital Transaction” or
“Dissolution Event” (each as defined in the Tech LP Agreement); or the Borrower or any Subsidiary
Guarantor fails to make a capital contribution required pursuant to Article III of the Tech LP
Agreement and/or becomes a Defaulting Partner (as defined in Section 3.8 of the Tech LP
Agreement); or any Default Loan (as defined in Section 3.8 of the Tech LP Agreement) is made by
Perseus pursuant to Section 3.8 of the Tech LP Agreement;

(o) without limitation of the other provisions of this §14.1, the Trust shall at any time fail
to be the sole general partner of FPLP (or shall enter into any agreement to permit any other
Person to acquire a general partner interest in FPLP) or shall at any time be in contravention of
any of the requirements contained in the last paragraph of §9.2 hereof, or §9.3 (including, without
limitation, the last paragraph of §9.3); or

(p) (i) the Borrower shall fail to own, directly or indirectly, 100% of the Equity Interests
of each Subsidiary Guarantor, (ii) the Borrower shall fail to own, directly or indirectly, 100% of
the Equity Interests of the general partner of FP Redland Tech or (iii) the Borrower shall fail to
own, directly or indirectly, the FP Redland Tech Equity Interests; or the Agent shall fail to have,
for any reason, a first-priority, perfected security interest in the Pledged Equity Interests;

then, and in any such event, so long as the same may be continuing, the Agent may, and upon
the request of the Majority Lenders shall, declare all amounts owing with respect to this
Agreement, the Notes and the other Loan Documents to be, and they shall thereupon forthwith become,
immediately due and payable without presentment, demand, protest or other notice of any kind, all
of which are hereby expressly waived by the Borrower, each Subsidiary Guarantor, the Trust and each
of their respective Subsidiaries; provided that in the event of any Event of Default
specified in §14.1(g) or 14.1(h), all such amounts shall become immediately due and payable
automatically and without any requirement of notice from any of the Lenders or the Agent or action
by the Lenders or the Agent.

 

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Notwithstanding the foregoing provisions of this §14.1, in the event of a Default or Event of
Default arising as a result of the inclusion of any Real Estate Asset in the Borrowing Base Pool at
any particular time of reference, if such Default or Event of Default is capable of being cured by
the exclusion of such Real Estate Asset from the Borrowing Base Pool in accordance with, and
subject to, §8.13 and from all other covenant calculations under §10 or otherwise, the Borrower
shall be permitted a period not to exceed five (5) days to submit to the Agent (with copies to the
Agent for each Lender) a compliance certificate in the form of Exhibit C hereto evidencing
compliance with the covenants set forth in §10 (with calculations evidencing such compliance after
excluding from Adjusted Net Operating Income all of the Adjusted Net Operating Income generated by
the Real Estate Asset to be excluded from the Borrowing Base Pool) and with the Borrowing Base
Property Conditions, and otherwise certifying that, after giving effect to the exclusion of such
Real Estate Asset from the Borrowing Base Pool, no Default or Event of Default will be continuing.

§14.2. [Reserved.]

§14.3. Remedies. In the event that one or more Events of Default shall have occurred
and be continuing, whether or not the Lenders shall have accelerated the maturity of the Term Loan
pursuant to §14.1, the Majority Lenders may direct the Agent to proceed to protect and enforce the
rights and remedies of the Agent and the Lenders under this Agreement, the Notes, any or all of the
other Loan Documents or under applicable law by suit in equity, action at law or other appropriate
proceeding (including for the specific performance of any covenant or agreement contained in this
Agreement or the other Loan Documents or any instrument pursuant to which the Obligations are
evidenced and, to the full extent permitted by applicable law, the obtaining of the ex
parte appointment of a receiver), and, if any amount shall have become due, by declaration or
otherwise, proceed to enforce the payment thereof or any other legal or equitable right or remedy
of the Agent and the Lenders under the Loan Documents or applicable law. No remedy herein
conferred upon the Lenders or the Agent or the holder of any Note is intended to be exclusive of
any other remedy and each and every remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or under any of the other Loan Documents or now or hereafter existing
at law or in equity or by statute or any other provision of law.

§15. SECURITY INTEREST AND SET-OFF.

§15.1 Security Interest. Borrower hereby grants to the Agent, on behalf of and for
the benefit of the Lenders, and to each Lender, a lien, security interest and right of setoff as
security for all liabilities and obligations to the Lenders, whether now existing or hereafter
arising, upon and against all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of the Agent or any Lender or
any entity under the control of KeyCorp. and its successors and assigns, or in transit to any of
them.

 

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§15.2 Set-Off and Debit. (i) If any Event of Default or other event which would
entitle the Agent to accelerate the Term Loan occurs, or (ii) at any time, whether or not any
Default or Event of Default exists, in the event any attachment, trustee process, garnishment, or
other levy or lien is, or is sought to be, imposed on any property of the Borrower or a Subsidiary
Guarantor; then, in any such event, any such deposits, balances or other sums credited by or due
from the Agent or any Lender, or from any such affiliate of the Agent or any Lender, to the
Borrower or a Subsidiary Guarantor may to the fullest extent not prohibited by applicable law at
any time or from time to time, without regard to the existence, sufficiency or adequacy of any
other collateral, and without notice or compliance with any other condition precedent now or
hereafter imposed by statute, rule of law or otherwise, all of which are hereby waived, be set off,
debited and appropriated, and applied by the Agent or any Lender, as the case may be, against any
or all of the Obligations irrespective of whether demand shall have been made and although such
Obligations may be unmatured, in such manner as the Agent or the applicable Lender in its sole and
absolute discretion may determine. Within five (5) Business Days of making any such set off, debit
or appropriation and application, the Agent agrees to notify the Borrower thereof, provided
that the failure to give such notice shall not affect the validity of such set off, debit or
appropriation and application. ANY AND ALL RIGHTS TO REQUIRE THE AGENT OR ANY LENDER TO EXERCISE
ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOANS, PRIOR TO
EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE
BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. Each of the Lenders agrees
with each other Lender that (a) if an amount to be set off is to be applied to indebtedness of the
Borrower to such Lender, other than the obligations evidenced by the Note held by such Lender, such
amount shall be applied ratably to such other indebtedness and to the obligations evidenced by the
Note held by such Lender, and (b) if such Lender shall receive from the Borrower, whether by
voluntary payment, exercise of the right of setoff, counterclaim, cross action, enforcement of the
claim evidenced by the Note held by such Lender by proceedings against the Borrower or a Subsidiary
Guarantor at law or in equity or by proof thereof in bankruptcy, reorganization liquidation,
receivership or similar proceedings, or otherwise, and shall retain and apply to the payment of the
Note held by such Lender any amount in excess of its ratable portion of the payments received by
all of the Lenders with respect to the Note held by all of the Lenders, such Lender will make such
disposition and arrangements with the other Lenders with respect to such excess, either by way of
distribution, pro tanto assignment of claims, subrogation or otherwise as shall result in each
Lender receiving in respect of the Note held by it its proportionate payment as contemplated by
this Agreement; provided that if all or any part of such excess payment is thereafter recovered
from such Lender, such disposition and arrangements shall be rescinded and the amount restored to
the extent of such recovery, but without interest.

 

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§15.3 Right to Freeze. The Agent and each of the Lenders shall also have the right,
at its option, upon the occurrence of any event which would entitle the Agent or any Lender to set
off or debit as set forth in §15.2, to freeze, block or segregate any such deposits, balances and
other sums so that the Borrower and the Subsidiary Guarantors may not access, control or draw upon
the same.

§15.4 Additional Rights. The rights of the Agent, the Lenders and each affiliate of
Agent and each of the Lenders under this Section 15 are in addition to, and not in limitation of,
other rights and remedies, including other rights of set off, which the Agent or any Lender may
have.

§16. THE AGENT.

§16.1. Authorization. (a) The Agent is authorized to take such action on behalf of
each of the Lenders and to exercise all such powers as are hereunder and under any of the other
Loan Documents and any related documents delegated to the Agent, together with such powers as are
reasonably incident thereto, provided that no duties or responsibilities not expressly
assumed herein or therein shall be implied to have been assumed by the Agent. The relationship
between the Agent and the Lenders is and shall be that of agent and principal only, and nothing
contained in this Agreement or any of the other Loan Documents shall be construed to constitute the
Agent as a trustee or fiduciary for any Lender.

(b) The Borrower, without further inquiry or investigation, shall, and is hereby authorized by
the Lenders to, assume that all actions taken by the Agent hereunder and in connection with or
under the Loan Documents are duly authorized by the Lenders. The Lenders shall notify Borrower of
any successor to Agent by a writing signed by Majority Lenders, which successor shall be reasonably
acceptable to the Borrower so long as no Default or Event of Default has occurred and is
continuing. The Borrower acknowledges that any Lender which acquires KeyBank is acceptable as a
successor to the Agent.

§16.2. Employees and Agents. The Agent may exercise its powers and execute its duties
by or through employees or agents and shall be entitled to take, and to rely on, advice of counsel
concerning all matters pertaining to its rights and duties under this Agreement and the other Loan
Documents. The Agent may utilize the services of such Persons as the Agent in its sole discretion
may reasonably determine, and all reasonable fees and expenses of any such Persons shall be paid by
the Borrower.

§16.3. No Liability. Neither the Agent, nor any of its shareholders, directors,
officers or employees nor any other Person assisting them in their duties nor any agent or employee
thereof, shall be liable for any waiver, consent or approval given or any action taken, or omitted
to be taken, in good faith by it or them hereunder or under any of the
other Loan Documents, or in connection herewith or therewith, or be responsible for the
consequences of any oversight or error of judgment whatsoever, except that the Agent may be liable
for losses due to its willful misconduct or gross negligence, as finally determined by a court of
competent jurisdiction.

 

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§16.4. No Representations. The Agent shall not be responsible for the execution or
validity or enforceability of this Agreement, the Notes or any of the other Loan Documents or for
the validity, enforceability or collectibility of any such amounts owing with respect to the Notes,
or for any recitals or statements, warranties or representations made herein or in any of the other
Loan Documents or in any certificate or instrument hereafter furnished to it by or on behalf of the
Trust or the Borrower or any of their respective Subsidiaries, or be bound to ascertain or inquire
as to the performance or observance of any of the terms, conditions, covenants or agreements in
this Agreement or the other Loan Documents. The Agent shall not be bound to ascertain whether any
notice, consent, waiver or request delivered to it by the Borrower, a Subsidiary Guarantor or the
Trust or any holder of any of the Notes shall have been duly authorized or is true, accurate and
complete. The Agent has not made nor does it now make any representations or warranties, express
or implied, nor does it assume any liability to the Lenders, with respect to the credit worthiness
or financial condition of the Borrower or a Subsidiary Guarantor or any of their respective
Subsidiaries or the Trust or any of the Subsidiaries or any tenant under a Lease or any other
entity. Each Lender acknowledges that it has, independently and without reliance upon the Agent or
any other Lender, and based upon such information and documents as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement.

§16.5. Payments.

(a) A payment by the Borrower to the Agent hereunder or any of the other Loan Documents for
the account of any Lender shall constitute a payment to such Lender on the date received, if before
1:00 p.m. (Cleveland, Ohio time), and if after 1:00 p.m. (Cleveland, Ohio time), on the next
Business Day. The Agent agrees to distribute to each Lender such Lender’s pro rata share
of payments received by the Agent for the accounts of all the Lenders, as provided herein or in any
of the other Loan Documents. All such payments by the Agent to the Lenders shall be made on the
date received, if before 1:00 p.m., and if after 1:00 p.m., on the next Business Day.

(b) If in the reasonable opinion of the Agent the distribution of any amount received by it in
such capacity hereunder, under the Notes or under any of the other Loan Documents might involve it
in material liability, it may refrain from making distribution until its right to make distribution
shall have been adjudicated by a court of competent jurisdiction, provided that the Agent
shall invest any such undistributed amounts in overnight obligations on behalf of the Lenders and
interest thereon shall be paid pro rata to the Lenders. If a court of competent
jurisdiction shall adjudge that any amount received and distributed by the Agent is to be repaid,
each Person to whom any
such distribution shall have been made shall either repay to the Agent its proportionate share of
the amount so adjudged to be repaid or shall pay over the same in such manner and to such Persons
as shall be determined by such court.

 

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(c) Notwithstanding anything to the contrary contained in this Agreement or any of the other
Loan Documents, any Lender that fails (i) to make available to the Agent its pro
rata share of the Term Loan or (ii) to adjust promptly such Lender’s outstanding principal
and its pro rata Commitment Percentage as provided in §2.1, shall be deemed delinquent (a
“Delinquent Lender”) and shall be deemed a Delinquent Lender until such time as such delinquency is
satisfied. A Delinquent Lender shall be deemed to have assigned any and all payments due to it
from the Borrower, whether on account of the outstanding Term Loan, interest, fees or otherwise, to
the remaining nondelinquent Lenders for application to, and reduction of, their respective
pro rata shares of all outstanding Loans. The Delinquent Lender hereby authorizes
the Agent to distribute such payments to the nondelinquent Lenders in proportion to their
respective pro rata shares of the outstanding Term Loan. If not previously
satisfied directly by the Delinquent Lender, a Delinquent Lender shall be deemed to have satisfied
in full a delinquency when and if, as a result of application of the assigned payments to the
outstanding Term Loan of the nondelinquent Lenders, the Lenders’ respective pro rata shares
of the outstanding Term Loan have returned to those in effect immediately prior to such delinquency
and without giving effect to the nonpayment causing such delinquency. The Commitment of any
Delinquent Lender shall be excluded for purposes of making a determination of Majority Lenders or
Unanimous Lender Approval. At the written request of the Borrower, the Agent or, with the consent
of the Agent, any Lender or an Eligible Assignee, shall have the right (but not the obligation) to
purchase from any Delinquent Lender, and each Delinquent Lender shall, upon such request, sell and
assign to the Agent, such Lender or such Eligible Assignee, all of the Delinquent Lender’s
outstanding Term Loan hereunder. Such sale shall be consummated promptly after the Agent has
arranged for a purchase by the Agent, a Lender or an Eligible Assignee pursuant to an Assignment
and Assumption, and at a price equal to the outstanding principal balance of the Delinquent
Lender’s Term Loan plus accrued interest and fees, without premium or discount.

§16.6. Holders of Notes. The Agent may deem and treat the payee of any Notes as the
absolute owner or purchaser thereof for all purposes hereof until it shall have been furnished in
writing with a different name by such payee or by a subsequent holder, assignee or transferee.

§16.7. Indemnity. The Lenders ratably and severally agree hereby to indemnify and
hold harmless the Agent and its Affiliates from and against any and all claims, actions and suits
(whether groundless or otherwise), losses, damages, costs, expenses (including any expenses for
which the Agent has not been reimbursed by the Borrower as required by §17), and liabilities of
every nature and character arising out of or related to this Agreement, the Notes, or any of the
other Loan Documents or the transactions
contemplated or evidenced hereby or thereby, or the Agent’s actions taken hereunder or thereunder,
except to the extent that any of the same shall be directly caused by the Agent’s willful
misconduct or gross negligence, as finally determined by a court of competent jurisdiction.

 

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§16.8. Agent as Lender. In its individual capacity as a Lender, KeyBank shall have
the same obligations and the same rights, powers and privileges in respect to its Commitment and
the Term Loan made by it, and as the holder of any of the Notes, as it would have were it not also
the Agent.

§16.9. Notification of Defaults and Events of Default. Each Lender hereby agrees
that, upon learning of the existence of a Default or an Event of Default, it shall (to the extent
notice has not previously been provided) promptly notify the Agent thereof. The Agent hereby
agrees that upon receipt of any notice under this §16.9 it shall promptly notify the other Lenders
of the existence of such Default or Event of Default.

§16.10. Duties in Case of Enforcement. In the case one or more Events of Default
have occurred and shall be continuing, and whether or not acceleration of the Obligations shall
have occurred, the Agent shall, at the request, or may, upon the consent, of the Majority Lenders,
and provided that the Lenders have given to the Agent such additional indemnities and assurances
against expenses and liabilities as the Agent may reasonably request, proceed to enforce the
provisions of this Loan Agreement and the other Loan Documents and the exercise of any other legal
or equitable rights or remedies as it may have hereunder or under any other Loan Document or
otherwise by virtue of applicable law, or to refrain from so acting if similarly requested by the
Majority Lenders. The Agent shall be fully protected in so acting or refraining from acting upon
the instruction of the Majority Lenders, and such instruction shall be binding upon all the
Lenders. The Majority Lenders may direct the Agent in writing as to the method and the extent of
any such foreclosure, sale or other disposition or the exercise of any other right or remedy, the
Lenders hereby agreeing to severally indemnify and hold the Agent harmless from all costs and
liabilities incurred in respect of all actions taken or omitted in accordance with such direction,
provided that the Agent need not comply with any such direction to the extent that the
Agent reasonably believes the Agent’s compliance with such direction may expose the Agent to
liability or be contrary to the Loan Documents or applicable law. The Agent may, in its discretion
but without obligation, in the absence of direction from the Majority Lenders, take such interim
actions as it believes reasonably necessary to preserve the rights of the Lenders hereunder,
including but not limited to petitioning a court for injunctive relief or appointment of a
receiver. Each of the Lenders acknowledges and agrees that, except for any rights of set-off
pursuant to and in accordance with §15.2 hereof, no individual Lender may separately enforce or
exercise any of the provisions of any of the Loan Documents, including without limitation the
Notes, other than through the Agent. The Agent shall advise the Lenders of all such action taken
by the Agent.

 

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§16.11. Successor Agent. KeyBank, or any successor Agent, may resign as Agent at any
time by giving at least 30 days prior written notice thereof to the Lenders and to the Borrower.
Any such resignation shall be effective upon appointment and acceptance of a successor Agent, as
hereinafter provided. Upon any such resignation, the Majority Lenders shall have the right to
appoint a successor Agent, which is a Lender under this Agreement, provided that so long as
no Default or Event of Default has occurred and is continuing the Borrower shall have the right to
approve any successor Agent, which approval shall not be unreasonably withheld. If, in the case of
a resignation by the Agent, no successor Agent shall have been so appointed by the Majority Lenders
and approved by the Borrower, and shall have accepted such appointment, within thirty (30) days
after the retiring Agent’s giving of notice of resignation, then the retiring Agent may, on behalf
of the Lenders, appoint any one of the other Lenders as a successor Agent. The Borrower
acknowledges that any Lender which acquires KeyBank is acceptable as a successor Agent. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from all further duties and obligations
as Agent under this Agreement. After any Agent’s resignation hereunder as Agent, the provisions of
this §16 shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Agent under this Agreement. The Agent agrees that it shall not assign any of its rights or
duties as Agent to any other Person. The Agent may be removed at the direction of the Majority
Lenders in the event of a final judicial determination (in which the Agent had an opportunity to be
heard) that the Agent had acted in a grossly negligent manner or in willful misconduct.

§16.12. Notices. Any notices or other information required hereunder to be provided
to the Agent (with copies to the Agent for each Lender) shall be promptly forwarded by the Agent to
each of the Lenders.

§17. EXPENSES. The Borrower agrees to pay (a) the reasonable costs of producing and
reproducing this Agreement, the other Loan Documents and the other agreements and instruments
mentioned herein, (b) the reasonable fees, expenses and disbursements of the Agent’s outside
counsel or any local counsel to the Agent incurred in connection with the preparation,
administration or interpretation of the Loan Documents and other instruments mentioned herein, each
closing hereunder, and amendments, modifications, approvals, consents or waivers hereto or
hereunder, (c) the fees, expenses and disbursements of the Agent incurred by the Agent in
connection with the preparation, administration or interpretation of the Loan Documents and other
instruments mentioned herein, including, without limitation, the costs incurred by the Agent in
connection with its inspection of the Eligible Borrowing Base Properties, and, without
double-counting amounts under clause (b) above, the fees and disbursements of the Agent’s counsel
in preparing the documentation, (d) the fees, costs, expenses and disbursements of the Agent and
its Affiliates incurred in connection

 

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 with the syndication and/or participations of the Term Loan
(whether occurring before or after the closing hereunder), including, without limitation, reasonable legal fees, travel costs, costs of preparing
syndication materials and photocopying costs, (e) all reasonable expenses (including reasonable
attorneys’ fees and costs, which attorneys may be employees of any Lender or the Agent, and the
fees and costs of engineers, appraisers, surveyors, investment bankers, or other experts retained
by any Lender or the Agent in connection with any such enforcement proceedings) incurred by any
Lender or the Agent in connection with (i) the enforcement of or preservation of rights under any
of the Loan Documents against the Borrower, any Subsidiary Guarantor or any of their Subsidiaries
or the Trust or the administration thereof after the occurrence and during the continuance of a
Default or Event of Default (including, without limitation, expenses incurred in any restructuring
and/or “workout” of the Term Loan), and (ii) any litigation, proceeding or dispute whether arising
hereunder or otherwise, in any way related to any Lender’s or the Agent’s relationship with the
Borrower, any Subsidiary Guarantor or any of their respective Subsidiaries or the Trust, (f) all
reasonable fees, expenses and disbursements of the Agent incurred in connection with UCC searches
and filings, UCC terminations or mortgage discharges, or otherwise in connection with the
Collateral, and (g) all costs incurred by the Agent in the future in connection with its inspection
of the Eligible Borrowing Base Properties (or any proposed Eligible Borrowing Base Property) or
with the addition of any Eligible Borrowing Base Property. The covenants of this §17 shall survive
the repayment of the amounts owing under the Notes and this Agreement and the termination of this
Agreement and the obligations of the Lenders hereunder.

§18. INDEMNIFICATION. The Borrower agrees to indemnify and hold harmless the Agent
and each of the Lenders and the shareholders, directors, agents, officers, subsidiaries and
affiliates of the Agent and each of the Lenders from and against any and all claims, actions and
suits, whether groundless or otherwise, and from and against any and all liabilities, losses
(including amounts, if any, owing to any Lender pursuant to §§4.4, 4.5, 4.6 and 4.8), settlement
payments, obligations, damages and expenses of every nature and character in connection therewith,
arising out of this Agreement or any of the other Loan Documents or the transactions contemplated
hereby or thereby or which otherwise arise in connection with the financing, including, without
limitation, (a) any actual or proposed use by the Borrower or any of its Subsidiaries of the
proceeds of any of the Term Loans (b) the Borrower or any of its Subsidiaries entering into or
performing this Agreement or any of the other Loan Documents, or (c) pursuant to §8.16, in each
case including, without limitation, the reasonable fees and disbursements of counsel and allocated
costs of internal counsel incurred in connection with any such investigation, litigation or other
proceeding, provided, however, that the Borrower shall not be obligated under this §18 to
indemnify any Person for liabilities arising from such Person’s own gross negligence, willful
misconduct or breach of this Agreement, as finally determined by a court of competent jurisdiction.
In litigation, or the preparation therefor, the Borrower shall be entitled to select counsel
reasonably acceptable to the Majority Lenders, and the Agent (as approved by the Majority Lenders)
shall be entitled to select their own supervisory counsel, and, in addition to the foregoing
indemnity, the Borrower agrees to pay

 

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 promptly the reasonable fees and expenses of each such counsel. Prior to any settlement of any such litigation by the Lenders, the Lenders shall
provide the Borrower and the Trust with notice and an opportunity to address any of their concerns
with the Lenders, and the Lenders shall not settle any litigation without first obtaining
Borrower’s consent thereto, which consent shall not be unreasonably withheld or delayed,
provided that such consent shall not be required at any time that an Event of Default has
occurred and is continuing. If and to the extent that the obligations of the Borrower under this
§18 are unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution
to the payment in satisfaction of such obligations which is permissible under applicable law. The
provisions of this §18 shall survive the repayment of the amounts owing under the Notes and this
Agreement and the termination of this Agreement and the obligations of the Lenders hereunder and
shall continue in full force and effect as long as the possibility of any such claim, action, cause
of action or suit exists. The indemnification provisions of this §18 shall apply to any indemnity
proceeding arising during the pendency of any bankruptcy proceeding filed by or against the
Borrower, the Trust or any of their respective Subsidiaries.

§19. SURVIVAL OF COVENANTS, ETC. All covenants, agreements, representations and
warranties made herein, in the Notes, in any of the other Loan Documents or in any documents or
other papers delivered by or on behalf of the Borrower, any Subsidiary Guarantor or any of their
respective Subsidiaries or the Trust pursuant hereto shall be deemed to have been relied upon by
the Lenders and the Agent, notwithstanding any investigation heretofore or hereafter made by any of
them, and shall survive the making by the Lenders of the Term Loan as herein contemplated, and
shall continue in full force and effect so long as any amount due under this Agreement or the Notes
or any of the other Loan Documents remains outstanding. The indemnification obligations of the
Borrower provided herein and in the other Loan Documents shall survive the full repayment of
amounts due and the termination of the obligations of the Lenders hereunder and thereunder to the
extent provided herein and therein. All statements contained in any certificate or other paper
delivered to any Lender or the Agent at any time by or on behalf of the Borrower, any Subsidiary
Guarantor or any of their respective Subsidiaries or the Trust pursuant hereto or in connection
with the transactions contemplated hereby shall constitute representations and warranties by the
Borrower, such Subsidiary Guarantor or such Subsidiary or the Trust hereunder.

 

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§20. ASSIGNMENT; PARTICIPATIONS; ETC.

§20.1. Conditions to Assignment by Lenders. Except as provided herein, each Lender
may assign to one or more Eligible Assignees all or a portion (in a minimum amount of $5,000,000)
of its interests, rights and obligations under this Agreement (including all or a portion of its
Commitment Percentage and Commitment); provided that (a) other than during the continuance
of an Event of Default, the Agent and the Borrower each shall have the right to approve any
assignment to an Eligible Assignee, which approval shall not be unreasonably withheld or delayed,
(b) subject to the provisions of §2.7, each Lender shall have at all times an amount of its
Commitment of
not less than $5,000,000 unless otherwise consented to by the Agent and (c) the parties to such
assignment shall execute and deliver to the Agent, for recording in the Register (as hereinafter
defined), an assignment and assumption, substantially in the form of Exhibit D hereto (an
“Assignment and Assumption”), together with any Notes subject to such assignment. Upon such
execution, delivery, acceptance and recording, from and after the effective date specified in each
Assignment and Assumption, which effective date shall be at least two (2) Business Days after the
execution thereof unless otherwise agreed or accepted by the Agent (provided any assignee
has assumed the obligation to fund any outstanding Libor Rate Loans), (i) the assignee thereunder
shall be a party hereto and, to the extent provided in such Assignment and Assumption, have the
rights and obligations of a Lender hereunder and thereunder, and (ii) the assigning Lender shall,
to the extent provided in such assignment and upon payment to the Agent of the registration fee
referred to in §20.3, be released from its obligations under this Agreement. Any such Assignment
and Assumption shall run to the benefit of the Borrower and a copy of any such Assignment and
Assumption shall be delivered by the Assignor to the Borrower.

Notwithstanding the provisions of subclause (a) of the preceding paragraph, any Lender may,
without the consent of the Borrower, make an assignment otherwise permitted hereunder to (x)
another Lender, and (y) an Affiliate of such Lender, provided that such Affiliate is an
Eligible Assignee. In no event may any Lender assign or participate (under §20.5) all or any
portion of its Term Loan to the Borrower or any of its Subsidiaries or Affiliates.

§20.2. Certain Representations and Warranties; Limitations; Covenants. By executing
and delivering an Assignment and Assumption, the parties to the assignment thereunder confirm to
and agree with each other and the other parties hereto as follows: (a) other than the
representation and warranty that it is the legal and beneficial owner of the interest being
assigned thereby free and clear of any adverse claim, the assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, the other Loan Documents or
any other instrument or document furnished pursuant hereto; (b) the assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower, any Subsidiary Guarantor or their respective Subsidiaries or the Trust or any other
Person primarily or secondarily liable in respect of any of the Obligations, or the performance or
observance by the Borrower, any Subsidiary Guarantor or their respective Subsidiaries or the Trust
or any other Person primarily or secondarily liable in respect of any of the Obligations of any of
their obligations under this Agreement or any of the other Loan Documents or any other instrument
or document furnished pursuant hereto or thereto; (c) such assignee confirms that it has received a
copy of this Agreement, together with copies of the most recent financial statements referred to in
§7.4 and §8.4 and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Assumption; (d) such assignee will,
independently and without reliance upon the assigning Lender, the Agent or any other Lender and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under this Agreement; (e) such assignee
represents and warrants that it is an Eligible Assignee; (f) such assignee appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers under this
Agreement and the other Loan Documents as are delegated to the Agent by the terms hereof or
thereof, together with such powers as are reasonably incidental thereto; (g) such assignee agrees
that it will perform in accordance with their terms all of the obligations that by the terms of
this Agreement are required to be performed by it as a Lender; and (h) such assignee represents and
warrants that it is legally authorized to enter into such Assignment and Assumption.

 

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§20.3. Register. The Agent shall maintain a copy of each Assignment and Assumption
delivered to it and a register or similar list (the “Register”) for the recordation of the names
and addresses of the Lenders and the Commitment Percentages of, and principal amount of the Term
Loan owing to, the Lenders from time to time. The entries in the Register shall be conclusive, in
the absence of manifest error, and the Borrower, the Agent and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.
The Register shall be available for inspection by the Borrower and the Lenders at any reasonable
time and from time to time upon reasonable prior notice. Except in the case of an assignment by a
Lender to its Affiliate, upon each such recordation, the assigning Lender agrees to pay to the
Agent a registration fee in the sum of $3,500 and all legal fees and expenses incurred by the Agent
in connection with such assignment.

§20.4. New Notes. Upon its receipt of an Assignment and Assumption executed by the
parties to such assignment, together with each Note subject to such assignment, the Agent shall (a)
record the information contained therein in the Register, and (b) give prompt notice thereof to the
Borrower and the Lenders (other than the assigning Lender). Unless done simultaneously with the
Assignment and Assumption, within two (2) Business Days after receipt of such notice, the Borrower,
at its own expense, shall execute and deliver to the Agent, in exchange for each surrendered Note,
a new Note to the order of such Eligible Assignee in an amount equal to the amount assumed by such
Eligible Assignee pursuant to such Assignment and Assumption and, if the assigning Lender has
retained some portion of its obligations hereunder, a new Note to the order of the assigning Lender
in an amount equal to the amount retained by it hereunder. Such new Notes shall provide that they
are replacements for the surrendered Notes, shall be in an aggregate principal amount equal to the
aggregate principal amount of the surrendered Notes, shall be dated the effective date of such
Assignment and Assumption and shall otherwise be in substantially the form of the assigned Notes.
The surrendered Notes shall be canceled and returned to the Borrower.

 

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§20.5. Participations. Each Lender may sell participations to one or more lending
institutions or other entities in all or a portion of such Lender’s rights and obligations
under this Agreement and the other Loan Documents; provided that (a) each such
participation shall be in an amount of not less than $5,000,000, (b) any such sale or participation
shall not affect the rights and duties of the selling Lender hereunder to the Borrower and the
Agent and the Lender shall continue to exercise all approvals, disapprovals and other functions of
a Lender, (c) the only rights granted to the participant pursuant to such participation
arrangements with respect to waivers, amendments or modifications of, or approvals under, the Loan
Documents shall be the rights to approve waivers, amendments or modifications that would reduce the
principal of or the interest rate on the Term Loan, extend the term or increase the amount of the
Commitment of such Lender as it relates to such participant, reduce the amount of any fees to which
such participant is entitled or extend any regularly scheduled payment date for principal or
interest, and (d) no participant shall have the right to grant further participations or assign its
rights, obligations or interests under such participation to other Persons without the prior
written consent of the Agent, which consent shall not be unreasonably withheld.

§20.6. Pledge by Lender. Notwithstanding any other provision of this Agreement, any
Lender at no cost to the Borrower may at any time pledge all or any portion of its interest and
rights under this Agreement (including all or any portion of its Note) to any of the twelve Federal
Reserve Banks organized under §4 of the Federal Reserve Act, 12 U.S.C. §341. No such pledge or the
enforcement thereof shall release the pledgor Lender from its obligations hereunder or under any of
the other Loan Documents.

§20.7. No Assignment by Borrower. The Borrower shall not assign or transfer any of
its rights or obligations under any of the Loan Documents without prior Unanimous Lender Approval.

§20.8. Disclosure. The Borrower agrees that, in addition to disclosures made in
accordance with standard banking practices, any Lender may disclose information obtained by such
Lender pursuant to this Agreement to assignees or participants and potential assignees or
participants hereunder.

§20.9. Syndication. The Borrower acknowledges that each of the Agent and the Arranger
shall have the right, by itself or through its Affiliates, to syndicate or enter into co-lending
arrangements with respect to the Term Loan and the Total Commitment pursuant to this §20. The
Arranger, in cooperation with the Borrower, will manage all aspects of the syndication, including
the selection of co-lenders, the determination of when Arranger will approach potential co-lenders
and the final allocations among co-lenders. Each of the Borrower and the Trust agrees to assist
Arranger actively in achieving a timely syndication that is reasonably satisfactory to the
Arranger, such assistance to include, among other things, (a) direct contact during the syndication
between the Borrower’s and the Trust’s senior officers, representatives and advisors, on the one
hand, and prospective co-lenders, on the other hand at such times and places as Arranger may
reasonably request, (b) providing to Arranger all financial and other
information with respect to the Borrower, the Subsidiary Guarantors and the Trust and the
transactions contemplated hereby that Arranger may reasonably request, including but not limited to
financial projections relating to the foregoing, and (c) assistance in the preparation of a
confidential information memorandum and other marketing materials to be used in connection with the
syndication, and the Borrower and the Trust agree to cooperate with the Agent’s and the Arranger’s
and their Affiliate’s syndication and/or co-lending efforts, such cooperation to include, without
limitation, the provision of information reasonably requested by potential syndicate members.

 

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§21. NOTICES, ETC. (a) Except as otherwise expressly provided in this Agreement, all
notices and other communications made or required to be given pursuant to this Agreement or the
Notes shall be in writing and shall be delivered in hand, mailed by United States registered or
certified first class mail, postage prepaid, sent by overnight courier, or sent by facsimile and
confirmed by delivery via courier or postal service, addressed as follows:

(i) if to the Borrower or the Trust, at 7600 Wisconsin Avenue, 11th Floor,
Bethesda, Maryland 20814, attention Barry Bass, Chief Financial Officer (facsimile: (301)
986-5554), with a copy to David Slotkin, Esq., Hogan Lovells US LLP, Columbia Square, 555
13th St., NW, Washington, DC 20004, or to such other address for notice as the Borrower
or the Trust shall have last furnished in writing to the Agent;

(ii) if to the Agent, to KeyBank National Association, 127 Public Square, Cleveland,
Cleveland, OH 44114, attention John Scott (facsimile: (216) 689-4997), with a copy to Cheri Van
Klompenberg, KeyBank Institutional Real Estate, 1675 Broadway, Suite 400, Denver Colorado 80202
(facsimile: 720-904-4420), or such other address for notice as the Agent shall have last furnished
in writing to the Borrower, with a copy to Pamela M. MacKenzie, Esq., Goulston & Storrs, 400
Atlantic Avenue, Boston, Massachusetts 02110-3333 (facsimile: (617)-574-7615), or at such other
address for notice as the Agent shall last have furnished in writing to the Person giving the
notice; and

(iii) if to any Lender, at such Lender’s address set forth on Schedule 2 hereto, or
such other address for notice as such Lender shall have last furnished in writing to the Person
giving the notice.

Any such notice or demand shall be deemed to have been duly given or made and to have become
effective (i) if delivered by hand, overnight courier, or facsimile to the party to which it is
directed, at the time of the receipt thereof by such party or the sending of such facsimile and
(ii) if sent by registered or certified first-class mail, postage prepaid, on the third Business
Day following the mailing thereof.

 

-84-

 

(b) Electronic Communications. Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agent,
provided that the foregoing shall not apply to notices to any Lender if such Lender has
notified the Agent that it is incapable of receiving notices by electronic communication. The
Agent or the Borrower may, in its discretion, agree to accept notices and other communications to
it hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or communications.

Unless the Agent otherwise prescribes, (i) notices and other communications sent to an
electronic mail (“e-mail”) address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided that if such notice or
other communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent (and received, if the acknowledgment contemplated
above has been obtained) at the opening of business on the next business day for the recipient, and
(ii) notices or communications posted to an Internet or intranet website shall be deemed received
upon the deemed receipt by the intended recipient at its e-mail address as described in the
foregoing clause (i) of notification that such notice or communication is available and identifying
the website address therefor.

(c) The Platform. THE PLATFORM (as defined in §8.10(c)) IS PROVIDED “AS IS” AND “AS
AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF
THE BORROWER INFORMATION OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER INFORMATION. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
ANY AGENT PARTY IN CONNECTION WITH THE BORROWER INFORMATION OR THE PLATFORM. In no event shall the
Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability
to the Borrower, any Lender or any other Person for losses, claims, damages, liabilities or
expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the
Agent’s transmission of Borrower Information through the Internet, except to the extent that such
losses, claims, damages, liabilities or expenses have resulted from the gross negligence, willful
misconduct or bad faith breach of this Agreement of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to the Borrower, any
Lender or any other Person for indirect, special, incidental, consequential or punitive damages (as
opposed to direct or actual damages).

 

-85-

 

(d) Change of Address, Etc. Each of the Borrower and the Agent may change its
address, electronic mail address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other Lender may change its
address, electronic mail address, telecopier or telephone number for notices and other
communications hereunder by notice to the Borrower and the Agent. In addition, each Lender agrees
to notify the Agent from time to time to ensure that the Agent has on record (i) an effective
address, contact name, telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire instructions for such Lender.

(e) Reliance by Agent, Fronting Bank and Lenders. The Borrower shall indemnify the
Agent, each Lender and the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the good faith reliance by such Person on each notice purportedly given
by or on behalf of the Borrower, provided, however, that the Borrower shall have no
liability hereunder for any such indemnified party’s gross negligence or willful misconduct in
connection therewith. All telephonic notices to and other telephonic communications with the Agent
may be recorded by the Agent, and each of the parties hereto hereby consents to such recording.

§22. FPLP AS AGENT FOR THE SUBSIDIARY GUARANTORS. The Borrower shall cause each
Subsidiary Guarantor to appoint FPLP as its agent with respect to the receiving and giving of any
notices, requests, instructions, reports, certificates (including, without limitation, compliance
certificates), schedules, revisions, financial statements or any other written or oral
communications hereunder or under any other Loan Document. The Agent and each Lender is hereby
entitled to rely on any communications given or transmitted by FPLP as if such communication were
given or transmitted by each and every Subsidiary Guarantor; provided however, that
any communication given or transmitted by any Subsidiary Guarantor shall be binding with respect to
such Subsidiary Guarantor. Any communication given or transmitted by the Agent or any Lender to
FPLP shall be deemed given and transmitted to each and every Subsidiary Guarantor.

§23. GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE. THIS AGREEMENT AND EACH OF
THE OTHER LOAN DOCUMENTS, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED THEREIN, ARE CONTRACTS UNDER
THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF SUCH STATE (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).
EACH OF THE BORROWER AND THE TRUST, FOR ITSELF AND ON BEHALF OF EACH OF THEIR RESPECTIVE
SUBSIDIARIES, AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS MAY BE BROUGHT IN ANY COURT IN THE STATE OF OHIO OR IN THE STATE OF NEW YORK AND OF ANY
FEDERAL COURT LOCATED IN OHIO OR NEW YORK AND CONSENTS TO THE
NON-EXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE
UPON THE BORROWER, A SUBSIDIARY GUARANTOR, THE TRUST OR THEIR SUBSIDIARIES BY MAIL AT THE ADDRESS
SPECIFIED IN §21. EACH OF THE BORROWER AND THE TRUST, FOR ITSELF AND ON BEHALF OF EACH OF THEIR
RESPECTIVE SUBSIDIARIES, HEREBY WAIVES ANY OBJECTION THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO
THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

 

-86-

 

§24. HEADINGS. The captions in this Agreement are for convenience of reference only
and shall not define or limit the provisions hereof.

§25. COUNTERPARTS. This Agreement and any amendment hereof may be executed in several
counterparts and by each party on a separate counterpart, each of which when so executed and
delivered shall be an original, and all of which together shall constitute one instrument. In
proving this Agreement it shall not be necessary to produce or account for more than one such
counterpart signed by the party against whom enforcement is sought.

§26. ENTIRE AGREEMENT, ETC. The Loan Documents and any other documents executed in
connection herewith or therewith express the entire understanding of the parties with respect to
the transactions contemplated hereby. Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated, except as provided in §28.

§27. WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS. EXCEPT TO THE EXTENT EXPRESSLY
PROHIBITED BY LAW, THE BORROWER, THE SUBSIDIARY GUARANTORS AND THEIR SUBSIDIARIES HEREBY WAIVE
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY
DISPUTE IN CONNECTION WITH THIS AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS
OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. EXCEPT
TO THE EXTENT EXPRESSLY PROHIBITED BY LAW, THE BORROWER, THE SUBSIDIARY GUARANTORS AND THEIR
SUBSIDIARIES HEREBY WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION
REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR
ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. EACH OF THE BORROWER, THE SUBSIDIARY
GUARANTORS AND THEIR SUBSIDIARIES (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
LENDER OR THE AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT
THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS
CONTAINED HEREIN.

 

-87-

 

§28. CONSENTS, AMENDMENTS, WAIVERS, ETC. Except as otherwise expressly provided in
this Agreement, any consent or approval required or permitted by this Agreement may be given, and
any term of this Agreement or of any of the other Loan Documents may be amended, and the
performance or observance by the Borrower, a Subsidiary Guarantor or the Trust or any of their
respective Subsidiaries of any terms of this Agreement or the other Loan Documents or the
continuance of any Default or Event of Default may be waived (either generally or in a particular
instance and either retroactively or prospectively) with, but only with, the written consent of the
Majority Lenders.

Notwithstanding the foregoing, the approval of each Lender directly affected thereby shall be
required for any amendment, modification or waiver of this Agreement that:

(i) reduces or forgives any principal of any unpaid Loan or any
interest thereon (including any general waiver of interest “breakage”
costs) or any fees due to such Lender hereunder, or permits any prepayment
not otherwise permitted hereunder; or

(ii) changes the unpaid principal amount of the Term Loan, reduces
the rate of interest applicable to the Term Loan, or reduces any fee
payable to such Lender hereunder; or

(iii) changes the date fixed for any payment of principal of or
interest on the Term Loan (including, without limitation, any extension of
the Maturity Date not contemplated herein) or any fees payable hereunder
(including, without limitation, the waiver of any monetary Event of
Default); or

(iv) changes the amount of such Lender’s Commitment (other than
pursuant to an assignment permitted under §20.1);

 

-88-

 

And Unanimous Lender Approval shall be required for any amendment, modification or waiver of
this Agreement that:

(i) modifies any provision herein or in any other Loan Document which
by the terms thereof expressly requires Unanimous Lender Approval; or

(ii) changes the definitions of Majority Lenders or Unanimous Lender
Approval; or

(iii) releases the Guaranty of the Trust, any Subsidiary Guaranty or
a material portion of the Collateral, other than in accordance with the
terms hereof.

No waiver shall extend to or affect any obligation not expressly waived or impair any right
consequent thereon. No course of dealing or delay or omission on the part of the Agent or the
Lenders or any Lender in exercising any right shall operate as a waiver thereof or otherwise be
prejudicial to such right or any other rights of the Agent or the Lenders. No notice to or demand
upon the Borrower or a Subsidiary Guarantor shall entitle the Borrower to other or further notice
or demand in similar or other circumstances.

Notwithstanding the foregoing, in the event that the Borrower requests any consent, waiver or
approval under this Agreement or any other Loan Document, or an amendment or modification hereof or
thereof, and one or more Lenders determine not to consent or agree to such consent, waiver,
approval, amendment or modification, then the Lender then acting as Agent hereunder (or other
financial institution approved by the Agent that will become a Lender in connection with such
purchase) shall have the right to purchase the Commitment of such non-consenting Lender(s) at a
purchase price equal to the then outstanding amount of principal, interest and fees then owing to
such Lender(s) by the Borrower hereunder, and such non-consenting Lender(s) shall immediately upon
request, sell and assign its Commitment and all of its other right, title and interest in the Loans
and other Obligations to the Lender then acting as Agent (or such other financial institution)
pursuant to an Assignment and Assumption (provided that the selling Lender(s) shall not be
responsible to pay any assignment fee in connection therewith).

§29. SEVERABILITY. The provisions of this Agreement are severable, and if any one
clause or provision hereof shall be held invalid or unenforceable in whole or in part in any
jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision,
or part thereof, in such jurisdiction, and shall not in any manner affect such clause or provision
in any other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction.

 

-89-

 

§30. INTEREST RATE LIMITATION. Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to the Term Loan, together with all fees, charges and other
amounts which are treated as interest on such Term Loan under
applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum
Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such
Term Loan in accordance with applicable law, the rate of interest payable in respect of such Term
Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in
respect of such Term Loan but were not payable as a result of the operation of this §30 shall be
cumulated and the interest and Charges payable to such Lender in respect of other periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Rate to the date of repayment, shall have been received by
such Lender.

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

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person or entity that
opens an account, including any deposit account, treasury management account, loan, other extension
of credit, or other financial services product. The Agent and/or the Lenders will ask for
Borrower’s name, taxpayer identification number, business address, and other information that will
allow the Agent and the Lenders to identify Borrower and the Subsidiary Guarantors. The Agent
and/or the Lenders may also ask to see Borrower’s and Subsidiary Guarantors’ legal organizational
documents or other identifying documents.

 

-90-

 

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as a sealed instrument
as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION,	 	 
	 	 	Individually and as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Scott	 	 
	 

	 	 	 	 

Name: John Scott
	 	 
	 

	 	 	 	Title:   Vice President	 	 

(Signatures continued on next page)

[Signature Page to Senior Secured Term Loan Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	First Potomac Realty Trust,	 	 
	 	 	 	 	its sole general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Barry H. Bass	 	 
	 

	 	 	 	 	 	 

Barry H. Bass, Chief Financial Officer

and Executive Vice President
	 	 

[Signature Page to Senior Secured Term Loan Agreement]exv10w65

Exhibit 10.65

THIRD AMENDMENT TO LEASE

     This THIRD AMENDMENT TO LEASE (“Amendment”) is made and entered into as of the 10th
day of December, 2010 (the “Effective Date”), by and between BRITANNIA POINTE GRAND LIMITED
PARTNERSHIP, a Delaware limited partnership (“Landlord”), and CYTOKINETICS, INC., a Delaware
corporation (“Tenant”).

R E C I T A L S :

     A. Landlord and Tenant are parties to that certain Lease dated May 27, 1997 (the “Original
Lease”), as amended by that certain First Amendment to Lease dated April 13, 1998, and that certain
Second Amendment to Lease dated July 11, 1999 (the Original Lease as so amended shall be
collectively referred to herein as the “Lease”), whereby Tenant leases approximately 50,195
rentable square feet of space (the “Existing Premises”) comprised of the entire 2-story building
(the “280 Building”) located at 280 East Grand Avenue, South San Francisco, California 94080,
which Building is located in that certain office project currently known as “Britannia Pointe Grand
Business Park” (the “Center”).

     B. Tenant is the successor in interest to MetaXen, LLC, the original tenant under the Lease,
and to Exelixis, Inc., successor-in-interest to MetaXen, LLC, by operation of (i) that certain
Assignment and Assumption Agreement and Consent dated July 11, 1999, and (ii) that certain
Assignment and Assumption of Lease dated September 28, 2000.

     C. Tenant is presently occupying approximately 31,392 rentable square feet of space (the
“Expansion Premises”), as more particularly set forth on Exhibit A attached hereto, in the
building located at 256 East Grand Avenue, South San Francisco, California (the “256 Building”), as
a subtenant under that certain Sublease between Tenant and Millennium Pharmaceuticals, Inc. (the
“Master Tenant”) dated November 23, 2005 (the “Sublease”). Master Tenant currently leases the
Expansion Premises as the tenant under that certain Lease between Landlord and COR Therapeutics,
Inc., predecessor-in-interest to Master Tenant, dated July 1, 2001 (the “Millennium Lease”).

     D. Tenant desires to amend the lease to (i) expand the Existing Premises to include the
Expansion Premises, (ii) extend the Term of the Lease with respect to the Existing Premises and the
Expansion Premises, and (iii) to make other modifications to the Lease on the terms and conditions
set forth in this Amendment.

A G R E E M E N T :

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

			
	 	 	 
	 
	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	[Cytokinetics, Inc.]
	 
	 	[Third Amendment]

 

 

     1. Capitalized Terms. All capitalized terms when used herein shall have the same
meaning as is given such terms in the Lease unless expressly superseded by the terms of this
Amendment.

     2. Modification of Premises.

          2.1. Addition of Expansion Premises. Effective as of July 1, 2011 (the “Expansion
Commencement Date”), Tenant shall lease from Landlord and Landlord shall lease to Tenant the
Expansion Premises. Consequently, effective upon the Expansion Commencement Date, the Existing
Premises shall be increased to include the Expansion Premises. Landlord and Tenant hereby
acknowledge that such addition of the Expansion Premises to the Existing Premises shall, effective
as of the Expansion Commencement Date, increase the size of the Premises to approximately 81,587
rentable square feet of space. The Existing Premises and the Expansion Premises may hereinafter
collectively be referred to as the “Premises”, in appropriate contexts.

          2.2. Improvement of Expansion Premises. Tenant hereby acknowledges that Tenant is
presently occupying the Expansion Premises as a subtenant pursuant to the Sublease. Master Tenant
currently leases the Expansion Premises as the tenant under the Millennium Lease. Therefore,
except as specifically set forth in this Amendment and in the Tenant Work Letter attached hereto as
Exhibit B (the “Tenant Work Letter”), Tenant shall, on and after the Expansion Commencement
Date, continue to accept the Expansion Premises in its then existing “as-is” condition and Landlord
shall not be obligated to provide or pay for any improvement work or services related to the
improvement of the Expansion Premises (other than in connection with its maintenance and repair
obligations under the Original Lease). Tenant also acknowledges that neither Landlord nor any
agent of Landlord has made any representation or warranty regarding the condition of the Expansion
Premises, the Building or the Project or with respect to the suitability of any of the foregoing
for the conduct of Tenant’s business, except as specifically set forth in this Amendment and the
Tenant Work Letter.

          2.3. Early Termination of Millennium Lease.

               2.3.1 Early Termination. In the event the Millennium Lease is terminated for any
reason prior to the Expansion Commencement Date, (i) the Sublease shall terminate simultaneously
with the Millennium Lease, and (ii) Tenant shall be deemed to have taken possession of the
Expansion Premises immediately upon such early termination and Tenant shall thereafter lease such
Expansion Premises from Landlord pursuant to the terms of the Lease, as amended hereby, as if the
Expansion Commencement Date had occurred; provided, however, that during the period commencing on
the date the Millennium Lease terminates (the “Early Possession Date”) and ending on the day
immediately preceding the Expansion Commencement Date, the amount of Minimum Rental and Tenant’s
Operating Cost Share of the Operating Expenses that Tenant shall pay to Landlord with respect to
the Expansion Premises shall be the same amount that Tenant would have paid as “Base Rent” and
“Additional Rent,” respectively, pursuant to the terms of the Sublease, as if the Sublease remained
in full force and effect (although all other terms and conditions relating to Tenant’s lease of the
Expansion Premises shall be governed by the terms of the Lease, as amended hereby).

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-2-
	 	[Third Amendment]

 

 

               2.3.2 Surrender/Restoration. Landlord acknowledges and agrees that, from and after
the natural expiration or earlier termination of the Millennium Lease, Tenant shall not be
obligated to vacate the Expansion Premises, nor to perform any surrender or restoration obligations
with respect to the Expansion Premises imposed on “Subtenant” or “Tenant” by the Sublease or the
Millennium Lease.

               2.3.3 Subtenant’s Property. Landlord agrees that, from and after the natural
expiration or earlier termination of the Millennium Lease, Tenant shall be permitted to continue to
use the “Subtenant’s Property”, as defined in Section 10 of the Sublease, as security for
third-party financing during the Term of the Lease, as amended hereby.

               2.3.4 Waiver of Option. Landlord hereby waives Landlord’s option to purchase the
Option Property (defined in 9.2(b) of the Millennium Lease) pursuant to the provisions Section
9.2(g) of the Millennium Lease, and from and after the Effective Date the option shall be of no
further force or effect.

     2.4. Expiration of Option to Extend. Landlord hereby represents and warrants for the
benefit of Tenant that the options to extend granted to Master Tenant pursuant to Section 2.6 of
the Master Lease are of no further force or effect.

     3. Term of Lease.

          3.1. Extension of Term of Lease. Landlord and Tenant acknowledge that Tenant’s lease
of the Existing Premises is scheduled to expire on August 14, 2013 (the “Original Expiration
Date”), pursuant to the terms of the Lease. Notwithstanding the foregoing or anything to the
contrary in the Lease, Landlord and Tenant hereby agree to extend the Term to June 30, 2018 (the
“New Expiration Date”), unless sooner terminated as provided in the Lease, as hereby amended.
Notwithstanding the Original Expiration Date, Landlord and Tenant hereby agree to revise the rent
paid by Tenant with respect to the Existing Premises effective as of July 1, 2011, as set forth in
Section 4 of this Amendment, below. Therefore, for purposes of this Amendment, the period
of time commencing on July 1, 2011, and ending on the New Expiration Date shall be referred to
herein as the “Extended Term.” The term of Tenant’s lease of the Expansion Premises (the
“Expansion Term”) shall commence, as set forth in Section 2 above, on the Expansion
Commencement Date and shall expire coterminously with the term of Tenant’s lease of the Existing
Premises on the New Expiration Date, unless sooner terminated as provided in the Lease, as hereby
amended.

          3.2. Option Term.

               3.2.1 Option Right. Landlord hereby grants to (i) the Tenant originally named herein
(the “Original Tenant”), (ii) any assignee of Original Tenant’s entire interest in the Lease that
is approved by Landlord pursuant to Article 13 of the Original Lease, or (iii) an assignee
of Tenant’s entire interest in the Lease pursuant to a Permitted Transfer (each, an “Approved
Assignee”), one (1) option to extend the Term for a period of three (3) years (the “Option Term”).
The option to extend shall be exercisable only by notice delivered by Tenant to Landlord as
provided in Section 3.2.3, below, provided that, as of the date of delivery of such notice,
Tenant is not in default under the Lease, beyond the expiration of any applicable notice

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-3-
	 	[Third Amendment]

 

 

and cure period expressly set forth in the Lease, and has not been in default under the Lease,
beyond the expiration of any applicable notice and cure period expressly set forth in the Lease, at
any time during the immediately preceding twelve (12) month period. Upon the proper exercise of
the option to extend, and provided that as of the end of the Term, Tenant is not in default under
the Lease (beyond the expiration of any applicable notice and cure period expressly set forth in
the Lease), the Term shall be extended for a period of three (3) years with respect to the entire
Premises (i.e., the Existing Premises and the Expansion Premises). The rights contained in this
Section 3.2 shall be personal to the Original Tenant and any Approved Assignee and may only
be exercised by the Original Tenant or an Approved Assignee (and not any other assignee or
sublessee or transferee of Tenant’s interest in the Lease) if the Original Tenant or an Approved
Assignee, as applicable, occupies the entire Premises. In the event that Tenant fails to timely
and appropriately exercise its option to extend in accordance with the terms of this Section
3.2, then the option to extend granted to Tenant pursuant to the terms of this Section
3.2 shall automatically terminate and shall be of no further force or effect. Any such
exercise of the option to extend shall be with respect to all of the Existing Premises and
Expansion Premises, and not just to either or any portion thereof.

               3.2.2 Option Rent. The minimum rental payable by Tenant during the Option Term (the
“Option Rent”) shall be equal to one hundred percent (100%) of the fair market rental value of the
Premises, with the fair market rental value to be determined in accordance with the provisions of
Section 3.1(c) of the Original Lease (provided that “one hundred percent (100%) of the fair market
rental value” shall be substituted for “eighty-five percent (85%) of fair market rental value” in
such Section 3.1(c)).

               3.2.3 Exercise of Option. The option contained in this Section 3.2 shall be
exercised by Tenant, if at all, by Tenant’s delivery of written notice (the “Option Interest
Notice”) to Landlord not more than twelve (12) months nor less than nine (9) months prior to the
then scheduled expiration of the Term, stating that Tenant is irrevocably exercising its option.
Upon Landlord’s receipt of the Option Interest Notice, the parties shall determine the Option Rent
pursuant to the provisions of Section 3.1(c) of the Original Lease (with “one hundred
percent (100%) of the fair market rental value” substituted for “eighty-five percent (85%) of fair
market rental value” in such Section 3.1(c)).

               3.2.4 Deletion of Prior Option Right. Section 2.6 of the Original Lease is
hereby deleted in its entirety and is of no further force or effect.

     4. Minimum Rental.

Prior to July 1, 2011, Tenant shall continue to pay minimum rental (“Minimum Rental”) with respect
to the Existing Premises in accordance with the terms of the Lease. Notwithstanding anything to
the contrary contained in the Lease as hereby amended, commencing as of July 1, 2011, and
continuing throughout the Extended Term, Tenant shall pay to Landlord monthly installments of
Minimum Rental for the Premises (i.e., the Existing Premises and Expansion Premises) as follows:

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-4-
	 	[Third Amendment]

 

 

          Existing Premises Minimum Rental

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Period During	 	Annualized	 	Monthly Installment	 	Monthly Rental Rate per
	Extended Term	 	Minimum Rental	 	of Minimum Rental	 	Rentable Square Foot
	July 1, 2011 —
August 31, 2011
	 	$	1,560,060.60	 	 	$	130,005.05	 	 	$	2.59	 
	September 1, 2011
— August 31, 2012
	 	$	1,614,271.20	 	 	$	134,522.60	 	 	$	2.68	 
	September 1, 2012
— August 31, 2013
	 	$	1,475,733.00	 	 	$	122,977.75	 	 	$	2.45	 
	September 1, 2013
— August 31, 2014
	 	$	1,626,318.00	 	 	$	135,526.50	 	 	$	2.70	 
	September 1, 2014
— August 31, 2015
	 	$	1,674,505.20	 	 	$	139,542.10	 	 	$	2.78	 
	September 1, 2015
— August 31, 2016
	 	$	1,722,692.40	 	 	$	143,557.70	 	 	$	2.86	 
	September 1, 2016
— August 31, 2017
	 	$	1,776,903.00	 	 	$	148,075.25	 	 	$	2.95	 
	September 1, 2017
— June 30, 2018
	 	$	1,831,113.60	 	 	$	152,592.80	 	 	$	3.04	 

     Expansion Premises Minimum Rental

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Period During	 	Annualized	 	Monthly Installment	 	Monthly Rental Rate per
	Extended Term	 	Minimum Rental	 	of Minimum Rental	 	Rentable Square Foot
	July 1, 2011 —
August 31, 2011
	 	$	809,913.60	 	 	$	67,492.80	 	 	$	2.15	 
	September 1, 2011
— August 31, 2012
	 	$	809,913.60	 	 	$	67,492.80	 	 	$	2.15	 
	September 1, 2012
— August 31, 2013
	 	$	885,254.40	 	 	$	73,771.20	 	 	$	2.35	 
	September 1, 2013
— August 31, 2014
	 	$	1,017,100.80	 	 	$	84,758.40	 	 	$	2.70	 
	September 1, 2014
— August 31, 2015
	 	$	1,047,237.12	 	 	$	87,269.76	 	 	$	2.78	 

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
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	Period During	 	Annualized	 	Monthly Installment	 	Monthly Rental Rate per
	Extended Term	 	Minimum Rental	 	of Minimum Rental	 	Rentable Square Foot
	September 1, 2015
— August 31, 2016
	 	$	1,077,373.44	 	 	$	89,781.12	 	 	$	2.86	 
	September 1, 2016
— August 31, 2017
	 	$	1,111,276.80	 	 	$	92,606.40	 	 	$	2.95	 
	September 1, 2017
— June 30, 2018
	 	$	1,145,180.16	 	 	$	95,431.68	 	 	$	3.04	 

     5. Tenant’s Operating Costs Share of Operating Expenses. Notwithstanding any contrary
provision contained in the Lease, as hereby amended, Tenant shall continue to pay Tenant’s
Operating Costs Share of Operating Expenses in connection with the Existing Premises which arise or
accrue prior to Expansion Commencement Date, in accordance with the terms of the Lease. Effective
as of the Expansion Commencement Date, and continuing throughout the Extended Term, Tenant shall
pay Tenant’s Operating Costs Share of Operating Expenses in connection with the Premises (i.e., the
Existing Premises and the Expansion Premises), in accordance with the terms of the Lease, provided
that with respect to the calculation of Tenant’s Operating Costs Share of Operating Expenses,
Tenant’s Operating Costs Share shall equal twelve and ninety-four hundredths percent (12.94%),
based upon an estimated area of 81,587 rentable square feet for the Premises and an estimated
630,528 rentable square feet for the Center.

     6. Condition of Premises. Tenant acknowledges and agrees that, except as specifically
set forth in the Tenant Work Letter, it currently occupies and is fully aware of the condition of,
and shall continue to accept, the Existing Premises in its presently existing, “as-is” condition,
and Landlord shall not be obligated to provide or pay for any improvement work or services related
to the improvement of the Existing Premises (other than in connection with its maintenance and
repair obligations under the Original Lease). Tenant also acknowledges that, except as
specifically set forth in the Tenant Work Letter, it currently occupies (pursuant to the Sublease)
and is fully aware of the condition of, and shall accept, the Expansion Premises in its then
existing, “as-is” condition as of the Expansion Commencement Date and Landlord shall not be
obligated to provide or pay for any improvement work or services related to the improvement of the
Expansion Premises (other than in connection with its maintenance and repair obligations under the
Original Lease). Tenant further acknowledges that neither Landlord nor any agent of Landlord has
made any representation or warranty regarding the condition of the Existing Premises, the Expansion
Premises, the Building or the Project or with respect to the suitability of any of the foregoing
for the conduct of Tenant’s business. Notwithstanding anything to the contrary contained in this
Amendment or the Lease, Landlord acknowledges and agrees that, upon the expiration or early
termination of the Lease, as amended hereby, Tenant shall not remove from the Existing Premises or
the Expansion Premises (nor shall Landlord have the right to require removal of) any alterations,
additions or improvements (including, without limitation, the Tenant Improvements installed
pursuant to Exhibit C of the Original Lease and any tenant improvements installed pursuant
to Section 2.3 of the Millennium Lease) installed by or on

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
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behalf of Tenant or any predecessor in interest to Tenant prior to the Effective Date of this
Amendment.

     7. Right of First Offer. Landlord hereby grants to Original Tenant an ongoing right
of first offer (the “First Offer Right”) with respect to the building located in the Center at 250
East Grand (the “First Offer Space”) on the terms of this Section 7. Notwithstanding the
foregoing, such First Offer Right shall commence only following the expiration or earlier
termination of any existing leases or subleases in the First Offer Space (the “Existing Offer Space
Leases”), and shall be subordinate to (i) all rights set forth in any Existing Offer Space Lease,
including any renewal, extension or expansion rights set forth in such leases, regardless of
whether such renewal, extension or expansion rights are executed strictly in accordance with their
terms, or pursuant to a lease amendment or a new lease with any tenant or subtenant under an
Existing Offer Space Lease, and (ii) any expansion by Alios BioPharma, or its successors, into
Suites 70 or 90 of the First Offer Space prior to July 1, 2014 (collectively, the “Superior
Rights”) with respect to such First Offer Space. In addition, regardless of whether there exists a
Superior Right, Landlord shall have the right to extend any of the Existing Offer Space Leases (or
convert any sublease to a direct lease and extend such direct lease) through December 31, 2012,
without such extension being subject to the First Offer Right.

          7.1. Procedure for Offer. Landlord shall notify Tenant (the “First Offer Notice”)
from time to time when the First Offer Space or any portion thereof becomes available and Landlord
intends to market the same for lease to third parties, other than through a Superior Right.
Pursuant to such First Offer Notice, Landlord shall offer to lease to Tenant the then available
First Offer Space. The First Offer Notice shall describe the space so offered to Tenant and shall
set forth the “First Offer Rent,” as that term is defined in Section 7.3 below, and the
other economic terms upon which Landlord is willing to lease such space to Tenant.

          7.2. Procedure for Acceptance. If Tenant wishes to exercise its First Offer Right
with respect to the space described in the First Offer Notice, then within ten (10) business days
of delivery of the First Offer Notice to Tenant, Tenant shall deliver notice to Landlord of
Tenant’s election to exercise its First Offer Right with respect to the entire space described in
the First Offer Notice on the terms contained in such notice. If Tenant does not so notify
Landlord within the ten (10) business day period, then Landlord shall be free to lease the space
described in the First Offer Notice to anyone to whom Landlord desires on any terms Landlord
desires. Notwithstanding the foregoing, prior to leasing such space to a third party on net
economic terms which are more than seven and one-half percent (7.5%) more favorable to a tenant
than those contained in the First Offer Notice, Landlord shall first deliver another First Offer
Notice to Tenant on such more favorable terms. Notwithstanding anything to the contrary contained
herein, Tenant must elect to exercise its First Offer Right, if at all, with respect to all of the
space offered by Landlord to Tenant at any particular time, and Tenant may not elect to lease only
a portion thereof.

          7.3. Construction In First Offer Space. Except for any improvement allowance provided
in the applicable First Offer Notice, Tenant shall take the First Offer Space
in its “as is” condition, and the construction of improvements in the First Offer Space shall
comply with the applicable terms of the Lease.

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
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          7.4. Amendment to Lease. If Tenant timely exercises Tenant’s right to lease the First
Offer Space as set forth herein, Landlord and Tenant shall promptly thereafter execute an amendment
to the Lease adding such First Offer Space upon the terms and conditions as set forth in the First
Offer Notice and this Section 7. Tenant shall commence payment of Rent for the First Offer
Space, and the term of the First Offer Space shall commence upon the date of delivery of the First
Offer Space to Tenant (the “First Offer Commencement Date”) and terminate on the date set forth in
the First Offer Notice.

          7.5. Termination of Right of First Offer. The rights contained in this Section
7 shall be personal to the Original Tenant and any Approved Assignee (as defined in Section
3.2.1, above), and may only be exercised by the Original Tenant (and not any assignee,
sublessee or other transferee of the Original Tenant’s interest in the Lease) if the Original
Tenant occupies the entire Premises. The right of first offer granted herein shall terminate as to
any particular portion of the First Offer Space upon the failure by Tenant to exercise its right of
first offer with respect to such portion of the First Offer Space as offered by Landlord; provided,
however, that Tenant’s rejection (or deemed rejection) of any particular First Offer Space shall
not relieve Landlord of its obligation to again offer any First Offer Space to Tenant at any time
that the First Offer Space subsequently becomes available. Tenant shall not have the right to
lease First Offer Space, as provided in this Section 7, if, as of the date of the attempted
exercise of any right of first offer by Tenant, or as of the scheduled date of delivery of such
First Offer Space to Tenant, Tenant is in default under the Lease after expiration of any
applicable notice and cure periods. Notwithstanding anything to the contrary contained in this
Section 7, throughout the Term of the Lease Landlord and Tenant shall use commercially
reasonable good faith efforts to advise the other party about its intentions regarding the First
Offer Space. Landlord’s good faith efforts shall include providing Tenant with informal updates
regarding the status of leasing activity with respect to the First Offer Space upon request by
Tenant.

     7.6. Parking and Transportation Demand Management. Landlord has advised Tenant that
the City of South San Francisco has instituted Transportation Demand Management (“TDM”) ordinances
pursuant to which Landlord will be required to undertake various measures to try to reduce the
volume of traffic generated by the Project. Tenant and Landlord will use reasonable efforts to try
to reduce the volume of traffic generated by the Project, as contemplated by the TDM, including
(but not limited to) by substantially complying with any specific measures required by the City of
South San Francisco or any of its departments or agencies. Tenant hereby agrees (at no additional
direct cost to Tenant, except as may be included in Operating Expenses payable by Tenant under the
Lease) (i) to designate one of its employees to act as a liaison with Landlord’s designated
transportation coordinator in facilitating and coordinating such programs as may be required from
time to time by governmental agencies and/or by the terms of any such TDMP to reduce the traffic
generated by the Project and to facilitate and encourage the use of public transportation, (ii) to
use reasonable efforts to encourage cooperation and participation by Tenant’s employees in the
programs implemented from time to time pursuant to any such TDMP, including (but not limited to)
any applicable programs of the kind described in this Section, (iii) to cooperate reasonably with
Landlord’s designated transportation coordinator in identifying an appropriate area within the
Building where an information kiosk or bulletin board can be maintained for the dissemination of
transportation-related information, to be updated from time to time by Landlord’s designated

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
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transportation coordinator, and (iv) to cooperate reasonably with Landlord in providing any
information, reports or surveys as required in connection with the TDM.

     8. Notices. Notwithstanding any provision contained in the Lease to the contrary,
effective as of the date of this Amendment, any notices to Landlord or Tenant shall be sent,
transmitted, or delivered, as the case may be, in accordance with the terms of Section 19.1
of the Original Lease to the following addresses:

	 	 	 

	If to Landlord:

	 	Britannia Pointe Grand Limited Partnership 

c/o o HCP, Inc. 

400 Oyster Point Blvd, Suite 409

South San Francisco, California 94080

Attention: Jon Bergschneider
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Britannia Pointe Grand Limited Partnership 

c/o HCP, Inc. 

3760 Kilroy Airport Way, Suite 300

Long Beach, CA 90806-2473

Attn: Legal Department
	 
	 	 
	 

	 	and with courtesy copies to:
	 
	 	 
	 

	 	CB Richard Ellis 

Asset Services Group 

101 California Street, 44th Floor 

San Francisco, California 94111

Attention: Asset Services Managing Director 

Fax: (415) 772-0459
	 
	 	 
	 

	 	and

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
	 	-9-
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	 	Allen Matkins Leck Gamble Mallory & Natsis LLP 

1901 Avenue of the Stars, Suite 1800

Los Angeles, California 90067

Attention: Anton N. Natsis, Esq.
	 
	 	 
	If to Tenant:

	 	Cytokinetics, Inc. 

280 East Grand Ave. 

South San Francisco, CA 94577

Attention: Chief Financial Officer
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Cytokinetics, Inc. 

280 East Grand Ave. 

South San Francisco, CA 94577

Attention: Legal Department

     9. Brokers. Landlord and Tenant hereby warrant to each other that they have had no
dealings with any real estate broker or agent in connection with the negotiation of this Amendment
other than CB Richard Ellis, Inc., representing Landlord, and GVA Kidder Mathews, representing
Tenant (the “Brokers”), and that they know of no other real estate broker or agent who is entitled
to a commission in connection with this Amendment. Each party agrees to indemnify and defend the
other party against and hold the other party harmless from any and all claims, demands, losses,
liabilities, lawsuits, judgments, and costs and expenses (including, without limitation, reasonable
attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be
owing on account of the indemnifying party’s dealings with any real estate broker or agent, other
than the Brokers. Landlord shall be responsible to pay any brokerage commission due in connection
with this transaction pursuant to a separate written agreement. The terms of this Section
8 shall survive the expiration or earlier termination of this Amendment.

     10. Conflict; No Further Modification. In the event of any conflict between the terms
and provisions of the Lease, Sublease, and/or the Master Lease, and the terms and provisions of
this Amendment, the terms and provisions of this Amendment shall prevail. Except as specifically
set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified
and in full force and effect.

     11. Final Agreement; Further Amendment. This Amendment, together with the Exhibits
attached hereto, sets forth the complete, final and exclusive agreement between the parties with
respect to its subject matter, and supersedes all prior agreements and understandings between the
parties, oral or written, with respect to such subject matter. No subsequent modification to this
Amendment will be binding upon the parties unless reduced to writing and signed by an authorized
representative of each party.

     12. SNDA. Landlord will use commercially reasonable efforts to cause the existing
lender at the Project (“Lender”) to acknowledge, whether by separate letter, amendment, or
otherwise, that the terms of the subordination, non-disturbance and attornment agreement entered
into by Lender and Tenant with respect to the Lease will apply to the Expansion Premises and

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
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this Amendment and to inform Landlord of Lender’s reasonable estimate of the costs and fees to
prepare Lender’s acknowledgment. Landlord shall relay Lender’s estimate to Tenant for Tenant’s
approval, which Tenant shall approve or disapprove within two (2) business days after receipt from
Landlord. If Tenant approves the estimate, Landlord shall so notify Lender and request that Lender
prepare the documentation. If Tenant does not approve the estimate, Tenant shall rescind its
request for the Lender’s acknowledgment, and Landlord shall be deemed to have complied with the
provisions of this Section 12. Tenant shall not be responsible for payment of Lender’s costs and
fees in excess of the estimate approved by Tenant.

     IN WITNESS WHEREOF, this Amendment has been executed as of the day and year first above
written.

	 	 	 	 	 
	“LANDLORD”       	BRITANNIA POINTE GRAND LIMITED PARTNERSHIP,

a Delaware limited partnership

 	 
	 	By:  	/s/ Jonathan M. Bergschneider
 	 
	 	 	Name:  	Jonathan M. Bergschneider 	 
	 	 	 Its: 	 SVP 	 
	 
	“TENANT”         	CYTOKINETICS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Sharon A. Barbari
 	 
	 	 	Name:  	Sharon A. Barbari 	 
	 	 	Its: 	 EVP Finance and CFO 	 
	 

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-11-
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EXHIBIT A

BRITANNIA POINTE GRAND BUSINESS PARK

OUTLINE OF EXPANSION PREMISES

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	EXHIBIT A
	 	[Cytokinetics, Inc.]
	 
	 	-1-
	 	[Third Amendment]

 

 

EXHIBIT B

BRITANNIA POINTE GRAND BUSINESS PARK

TENANT WORK LETTER

     This Tenant Work Letter shall set forth the terms and conditions relating to the initial
improvement of the Premises for Tenant following the date of this Amendment. This Tenant Work
Letter is essentially organized chronologically and addresses the issues of construction, in
sequence, as such issues will arise during construction in the Premises. All references in this
Tenant Work Letter to Articles or Sections of “this Lease” shall mean the relevant portions of
Articles 1 through 19 of the Original Lease, all references to “this Amendment”
shall mean the relevant portions of Sections 1 through 12 of the Amendment to which
this Tenant Work Letter is attached as Exhibit B, and all references in this Tenant Work
Letter to Sections of “this Tenant Work Letter” shall mean the relevant portions of Sections
0 through 5 of this Tenant Work Letter. As used in the Tenant Work Letter, all
references to the “Premises” shall mean the Existing Premises and the Expansion Premises. Landlord
hereby acknowledges and agrees that Tenant may construct Tenant Improvements (defined below) in the
Premises in phases between January 1, 2011 and December 31, 2013, and that, depending upon the
scope of work for the Tenant Improvement construction at issue, certain provisions of this Tenant
Work Letter will not be applicable to a particular construction phase. At the time Tenant
commences any such particular phase, Landlord and Tenant shall mutually and reasonably agree upon
which provisions of this Work Letter will not apply to such phase.

SECTION 0

CONSENT OF MASTER TENANT

     If Tenant desires the construction of the “Tenant Improvements”, as defined in Section
2.1, below, in all or any portion of the Expansion Premises to commence prior to the Expansion
Commencement Date, then, prior to such commencement, and prior to any obligation on the part of
Landlord to disburse any portion of the Tenant Improvement Allowance with respect to the Expansion
Premises, other than such portion thereof that relates to the fees of Architect and Engineers as
provided in Section 2.2.1.1 of this Tenant Work Letter, and plan check, permit and license
fees as provided in Section 2.2.1.2 of this Tenant Work Letter, Landlord shall use
reasonable efforts (but with no obligation to make any payment or other monetary or other
concession to Master Tenant) to obtain the express written consent of Master Tenant, in accordance
with the terms of the Sublease, to proceed with the construction of the Tenant Improvements prior
to the expiration of the term of the Millennium Lease. Landlord shall obtain Tenant’s prior
written consent (which shall not be unreasonably withheld, conditioned or delayed) to Master
Tenant’s written consent to Tenant’s construction of the Tenant Improvements; provided, however,
that Tenant shall not withhold its consent to any disclaimer by Master Tenant of responsibility for
the cost to construct or for the removal of all or any portion of the Tenant Improvements.
Landlord shall deliver a copy of such consent to Tenant promptly upon Landlord’s receipt of the
same. Once such written consent is so obtained, the provisions of this Tenant Work Letter shall
supersede any provisions of the Millennium

					
	 	 	 	 	 
	 
	 	 
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	 	 	 	[Cytokinetics, Inc.]
	 
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Lease relating to Master Tenant obtaining the consent of Landlord to the construction of the Tenant
Improvements.

SECTION 1

LANDLORD WORK

     Notwithstanding anything to the contrary set forth in this Tenant Work Letter, Landlord shall,
at Landlord’s sole cost and expense (which costs shall not be passed through to Tenant as Operating
Expenses), replace certain AC units, air-handlers, fan units and boilers on the roof of the
Expansion Premises as listed on Schedule 1 attached hereto, which are located as set forth
on Schedule 2 attached hereto, and make the associated electrical connections and any
required structural or other repair work to the roof of the Expansion Premises (collectively, the
“Landlord Work”). The Landlord Work shall not include any work or improvements to any HVAC ducting
or distribution. Each portion of the Landlord Work shall be completed by Landlord in the calendar
year as to which such portion of the Landlord Work is associated as
shown on Schedule 1,provided that at Landlord’s option, Landlord may accelerate any such work, or, with the prior
approval of Tenant, adjust the sequence of such work. The plans and specifications for the
Landlord Work, as well as the contractor retained by Landlord to perform the Landlord Work, shall
be determined by Landlord in its reasonable discretion. The Landlord Work shall be completed to
Landlord’s “Building standards,” as generally applied by Landlord on a uniform basis in the
Project, and otherwise in accordance with the Schedules and in compliance with all applicable law,
in a good and workmanlike manner, free of defects and using new Building standard materials and
equipment of good quality. Within thirty (30) days after completion of any particular phase of the
Landlord’s Work, Tenant shall have the right to submit a written punch list to Landlord, setting
forth any defective item of Landlord’s Work, and Landlord shall promptly cause such items to be
corrected. Notwithstanding anything to the contrary contained herein or in the Lease, Tenant’s
submission of a punch list with respect to the Landlord’s Work shall not be deemed a waiver of
Tenant’s right to have defects in the Landlord’s Work repaired at no cost to Tenant during the
period of any applicable warranty from Landlord’s contractor(s). During such period Tenant shall
give notice to Landlord whenever any such defect becomes reasonably apparent, and Landlord shall
have such defect repaired as soon as practicable. Landlord and Tenant shall work together in good
faith in order to coordinate the construction of the Landlord Work concurrently with the
construction of the Tenant Improvements. Prior to Landlord’s commencement of any particular
portion of the Landlord Work, Tenant shall have the right to request reasonable changes to the
scope of the Landlord Work, provided that Tenant shall bear all costs related to any such change in
scope. Each party shall use commercially reasonable efforts to minimize any unnecessary
interference with the other during such simultaneous construction. Tenant shall inform Landlord
within thirty (30) days after Landlord’s completion of the Landlord Work whether of any portion
thereof is defective or incomplete, and Landlord shall promptly remedy the same.

SECTION 2

TENANT IMPROVEMENTS

     2.1 Tenant Improvement Allowance. Tenant shall be entitled to a one-time tenant
improvement allowance (the “Tenant Improvement Allowance”) in the amount of

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
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$1,631,740.00 (i.e., $20.00 per rentable square foot of the Premises) for the costs relating
to the initial design and construction of Tenant’s improvements which are permanently affixed to
the Premises or which are “Tenant Improvement Allowance Items,” as that term is defined in Section
2.2.1, below (collectively, the “Tenant Improvements”), which shall be available for disbursement
under this Tenant Work Letter commencing on January 1, 2011. Except with respect to the Landlord
Work, in no event shall Landlord be obligated to make disbursements pursuant to this Tenant Work
Letter in a total amount which exceeds the Tenant Improvement Allowance. Tenant hereby
acknowledges and agrees that any portion of the Tenant Improvement Allowance as to which Tenant has
not requested disbursement pursuant to the terms of this Tenant Work Letter as of December 31,
2013, shall revert to Landlord and Tenant shall have no further right thereto. All Tenant
Improvements for which the Tenant Improvement Allowance has been made available shall be deemed
Landlord’s property under the terms of the Lease; provided, however, Landlord may, by written
notice to Tenant given concurrently with Landlord’s approval of the “Final Working Drawings”, as
that term is defined in Section 3.3, below, require Tenant, not later than the end of the
Lease Term, or given following any earlier termination of this Lease, at Tenant’s expense, to
remove any Tenant Improvements and to repair any damage to the Premises and Building caused by such
removal and return the affected portion of the Premises to their condition existing prior to the
installation of such removed Tenant Improvements.

     2.2 Disbursement of the Tenant Improvement Allowance.

          2.2.1 Tenant Improvement Allowance Items. Except as otherwise set forth in this
Tenant Work Letter, the Tenant Improvement Allowance shall be disbursed by Landlord only for the
following items and costs (collectively the “Tenant Improvement Allowance Items”):

               2.2.1.1 Payment of all reasonable fees of the “Architect” and the “Engineers,” as those terms
are defined in Section 3.1 of this Tenant Work Letter, project management fees, and payment
of the fees incurred by, and the cost of documents and materials supplied by, Landlord and
Landlord’s consultants in connection with the preparation and review of the “Construction
Drawings,” as that term is defined in Section 3.2 of this Tenant Work Letter;

               2.2.1.2 The payment of plan check, permit and license fees relating to construction of the
Tenant Improvements;

               2.2.1.3 The cost of construction of the Tenant Improvements, including, without limitation,
testing and inspection costs, costs incurred for removal of existing furniture, fixtures or
equipment in the Premises, hoisting and trash removal costs, costs to purchase and install in the
Premises equipment customarily incorporated into laboratory improvements or laboratory utility
systems, including, without limitation, UPS, DI Systems, boilers, air compressors, glass/cage
washers and autoclaves, painting, and contractors’ fees and general conditions;

               2.2.1.4 The cost of any changes in the base building shell and building systems in either the
Existing Premises or the Expansion Premises (hereafter, the “Base Building”) when such changes are
required by the Construction Drawings (including if such changes are due to the fact that such work
is prepared on an unoccupied basis), such cost to

					
	 	 	 	 	 
	 
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include all direct architectural and/or engineering fees and expenses incurred in connection
therewith;

               2.2.1.5 The cost of any changes to the Construction Drawings or Tenant Improvements required
by all applicable building codes (the “Code”);

               2.2.1.6 Sales and use taxes;

               2.2.1.7 All other actual, documented out-of-pocket costs expended by Landlord in connection
with the construction of the Tenant Improvements, including, without limitation, costs expended by
Landlord pursuant to Section 4.1.1 of this Tenant Work Letter, below, provided, however,
that in no event shall Landlord’s out-of-pocket costs exceed three percent (3%) of the Tenant
Improvement Allowance.

          2.2.2 Disbursement of Tenant Improvement Allowance. During the construction of the
Tenant Improvements, but in no event prior to January 1, 2011, Landlord shall make monthly
disbursements of the Tenant Improvement Allowance for Tenant Improvement Allowance Items for the
benefit of Tenant and shall authorize the release of monies for the benefit of Tenant as follows.

               2.2.2.1 Monthly Disbursements. On or before the tenth (10th) day of each
calendar month, during the design and construction of the Tenant Improvements (or such other date
as Landlord may designate), Tenant shall deliver to Landlord: (i) a request for reimbursement of
amounts paid to the “Contractor,” as that term is defined in Section 4.1.1 of this Tenant
Work Letter, approved by Tenant, in a commercially reasonable form to be provided by Landlord,
showing the schedule, by trade, of percentage of completion of the Tenant Improvements in the
Premises, detailing the portion of the work completed and the portion not completed; (ii) invoices
from all of “Tenant’s Agents,” as that term is defined in Section 4.1.2 of this Tenant Work
Letter, for labor rendered and materials for the Premises; (iii) executed mechanic’s lien releases,
as applicable, from all of Tenant’s Agents which shall comply with the appropriate provisions, as
reasonably determined by Landlord, of California Civil Code Section 3262(d); and (iv) all other
information reasonably requested by Landlord. Within forty-five (45) days thereafter, Landlord
shall deliver a check to Tenant made payable to Tenant in payment of the lesser of: (A) the
amounts so requested by Tenant as set forth in this Section 2.2.2.1, above (or, subject to
the terms of Section 4.2.1, below, a percentage thereof), and (B) the balance of any
remaining available portion of the Tenant Improvement Allowance, provided that Landlord does not
dispute any request for payment based on non-compliance of any work with the “Approved Working
Drawings,” as that term is defined in Section 3.5 below, or due to any substandard work (as
reasonably determined by Landlord). Landlord’s payment of such amounts shall not be deemed
Landlord’s approval or acceptance of the work furnished or materials supplied as set forth in
Tenant’s payment request.

               2.2.2.2 Final Deliveries. Following the completion of construction of the Tenant
Improvements, Tenant shall deliver to Landlord properly executed final mechanic’s lien releases in
compliance with both California Civil Code Section 3262(d)(2) and either Section 3262(d)(3) or
Section 3262(d)(4) from all of Tenant’s Agents, and a certificate certifying that the construction
of the Tenant Improvements in the Premises has been substantially completed. Tenant shall record a
valid Notice of Completion in accordance with the requirements of Section 4.3 of this
Tenant Work Letter.

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-4-
	 	[Third Amendment]

 

 

               2.2.2.3 Other Terms. Landlord shall only be obligated to make disbursements from the
Tenant Improvement Allowance to the extent costs are incurred by Tenant for Tenant Improvement
Allowance Items. All Tenant Improvement Allowance Items for which the Tenant Improvement Allowance
has been made available shall be deemed Landlord’s property under the terms of this Lease.

     2.3 Building Standards. The quality of Tenant Improvements shall be in keeping with
the existing improvements in the Premises.

SECTION 3

CONSTRUCTION DRAWINGS

     3.1 Selection of Architect. Tenant shall retain an architect/space planner approved
in advance by Landlord (the “Architect”) to prepare the Final Space Plan and Final Working Drawings
as provided in Section 3.2 and 3.3, below. Landlord’s approval of the Architect shall not be
unreasonably withheld, conditioned or delayed. Tenant shall retain the engineering consultants or
design/build subcontractors designated by Tenant and reasonably approved in advance by Landlord
(the “Engineers”) to prepare all plans and engineering working drawings relating to the structural,
mechanical, electrical, plumbing, HVAC, lifesafety, and sprinkler work in the Premises, which work
is not part of the Base Building. All such plans and drawings shall comply with the drawing format
and specifications reasonably determined by Landlord, and shall be subject to Landlord’s reasonable
approval. Tenant and Architect shall verify, in the field, the dimensions and conditions as shown
on the relevant portions of the Base Building plans, and Tenant and Architect shall be solely
responsible for the same, and Landlord shall have no responsibility in connection therewith. Upon
Tenant’s request, Landlord shall provide Tenant with any applicable existing drawings or plans
relating to the Expansion Premises that are in Landlord’s possession and control. Landlord’s
review of any plans or drawings as set forth in this Section 3, shall be for its sole
purpose and shall not imply Landlord’s review of the same, or obligate Landlord to review the same,
for quality, design, Code compliance or other like matters.

     3.2 Final Space Plan. Tenant shall supply Landlord with four (4) copies signed by
Tenant of its final space plan for the Premises before any architectural working drawings or
engineering drawings have been commenced. The final space plan (the “Final Space Plan”) shall
include a layout and designation of all offices, labs, rooms and other partitioning, their intended
use, and equipment to be contained therein. Landlord may request clarification or more specific
drawings for special use items not included in the Final Space Plan. Landlord shall advise Tenant
within five (5) business days after Landlord’s receipt of the Final Space Plan for the Premises if
the same is unsatisfactory or incomplete in any respect. If Tenant is so advised, Tenant shall
promptly cause the Final Space Plan to be revised to correct any deficiencies or other matters
Landlord may reasonably require. In the event of a dispute relating to the Final Space Plan, the
parties shall promptly meet and confer and negotiate in good faith to resolve the dispute.

     3.3 Final Working Drawings. After the Final Space Plan has been approved by Landlord,
Tenant shall supply the Engineers with a complete listing of standard and non-standard equipment
and specifications, including, without limitation, Title 24 calculations, electrical requirements
and special electrical receptacle requirements for the Premises, to enable the

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-5-
	 	[Third Amendment]

 

 

Engineers and the Architect to complete the “Final Working Drawings” (as that term is defined
below) in the manner as set forth below. Upon the approval of the Final Space Plan by Landlord and
Tenant, Tenant shall promptly cause the Architect and the Engineers to complete the architectural
and engineering drawings for the Premises, and Architect shall compile a fully coordinated set of
architectural, structural, mechanical, electrical and plumbing working drawings in a form which is
sufficiently complete to allow all of Tenant’s Agents to bid on the work and to obtain all
applicable permits (collectively, the “Final Working Drawings”) and shall submit the same to
Landlord for Landlord’s approval, which shall not be unreasonably withheld, conditioned, or
delayed. Tenant shall supply Landlord with four (4) copies signed by Tenant of such Final Working
Drawings. Landlord shall advise Tenant within ten (10) business days after Landlord’s receipt of
the Final Working Drawings for the Premises if the same is unsatisfactory or incomplete in any
respect. If Tenant is so advised, Tenant shall promptly cause the Final Working Drawings to be
revised in accordance with such review and any disapproval of Landlord in connection therewith. In
the event of any dispute relating to the Final Working Drawings, the parties shall promptly meet
and confer and negotiate in good faith to resolve the dispute. In addition, if the Final Working
Drawings or any amendment thereof or supplement thereto shall require alterations in the Base
Building (as contrasted with the Tenant Improvements), and if Landlord in its reasonable discretion
agrees to any such alterations, and notifies Tenant of the need and cost for such alterations, then
Tenant shall have the right to review and approve the cost thereof (which approval shall not be
unreasonably withheld, conditioned or delayed), and shall pay the approved cost of such required
changes once completed by Landlord (provided, however, that Tenant may use the Tenant Improvement
Allowance to pay such cost).

     3.4 Approved Working Drawings. The Final Working Drawings shall be approved by
Landlord pursuant to Section 3.3, above (the “Approved Working Drawings”) prior to the
commencement of construction of the Premises by Tenant. Concurrently with Tenant’s delivery of the
Final Working Drawings to Landlord for Landlord’s approval, Tenant may submit the same to the
appropriate municipal authorities for all applicable building permits. Tenant hereby agrees that
neither Landlord nor Landlord’s consultants shall be responsible for obtaining any building permit
or certificate of occupancy for the Premises and that obtaining the same shall be Tenant’s
responsibility; provided, however, that Landlord shall cooperate with Tenant in executing permit
applications and performing other ministerial acts reasonably necessary to enable Tenant to obtain
any such permit or certificate of occupancy. No changes, modifications or alterations in the
Approved Working Drawings may be made without the prior written consent of Landlord, which shall
not be unreasonably withheld, conditioned, or delayed.

SECTION 4

CONSTRUCTION OF THE TENANT IMPROVEMENTS

     4.1 Tenant’s Selection of Contractors.

          4.1.1 The Contractor; Landlord’s Project Manager. Tenant shall retain a contractor to
construct the Tenant Improvements (“Contractor”) which shall be approved in advance by Landlord,
which approval shall not be unreasonably withheld, conditioned or delayed. Landlord shall retain
Project Management Advisors, Inc. (“PMA”) as a third party project manager to coordinate the
construction of the Tenant Improvements on behalf of

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-6-
	 	[Third Amendment]

 

 

Landlord, and Tenant shall pay to Landlord the actual out-of-pocket costs paid by Landlord to
PMA in connection with the construction of the Tenant Improvements (subject to the terms of
Section 2.2.1.7, above).

          4.1.2 Tenant’s Agents. All subcontractors, laborers, materialmen, and suppliers used
by Tenant, and the Contractor are referred to collectively as “Tenant’s Agents”. The
subcontractors used by Tenant, but not any laborers, materialmen, and suppliers, must be approved
in writing by Landlord, which approval shall not be unreasonably withheld, conditioned, or delayed;
provided, however, Landlord may nevertheless reasonably designate and require the use of particular
mechanical, engineering, plumbing, fire life-safety and other Base Building subcontractors. If
Landlord does not approve any of Tenant’s proposed subcontractors, Tenant shall submit other
proposed subcontractors for Landlord’s written approval.

     4.2 Construction of Tenant Improvements by Tenant’s Agents.

          4.2.1 Construction Contract; Cost Budget. Tenant shall engage the Contractor under a
commercially reasonable construction contract (the “Contract”). Prior to the commencement of the
construction of the Tenant Improvements, and after Tenant has accepted all bids for the Tenant
Improvements, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs
to be incurred or which have been incurred, as set forth more particularly in Sections
2.2.1.1 through 2.2.1.7, above, in connection with the design and construction of the
Tenant Improvements to be performed by or at the direction of Tenant or the Contractor, which costs
form a basis for the estimated total costs of the work of the Tenant Improvement project (the
“Final Budget”). Prior to the commencement of construction of the Tenant Improvements, Tenant
shall inform Landlord of the amount, if any, by which the amount of the Final Budget exceeds the
amount of the Tenant Improvement Allowance (less any portion thereof already disbursed by Landlord,
or in the process of being disbursed by Landlord, on or before the commencement of construction of
the Tenant Improvements) (the “Over-Allowance Amount”). Tenant shall be responsible to pay a
percentage of each disbursement under this Tenant Work Letter, which percentage shall be equal to
the amount of the Over-Allowance Amount, divided by the amount of the Final Budget, and such
payment by Tenant shall be a condition to Landlord’s obligation to pay any further amounts of the
Tenant Improvement Allowance. In the event that, after the Final Budget has been delivered by
Tenant to Landlord, the costs relating to the design and construction of the Tenant Improvements
shall exceed, or further exceed, as applicable, the Tenant Improvement Allowance, any such
additional costs necessary for such design and construction in excess of the Tenant Improvement
Allowance, shall be added to the Over-Allowance Amount and paid by Tenant pursuant to the terms of
this Section 4.2.1 (provided that Landlord and Tenant shall promptly reconcile any amount
owed to Landlord by Tenant as a result of such additional costs in order to effectuate the intent
of this Section 4.2.1). For the avoidance of doubt, changes in the Final Budget that do
not exceed the amount of the Tenant Improvement Allowance shall not affect Landlord’s
responsibility to reimburse Tenant for such non-excess costs.

          4.2.2 Tenant’s Agents.

               4.2.2.1 Compliance with Drawings and Schedule. Tenant’s and Tenant’s Agent’s
construction of the Tenant Improvements shall comply with the following: (i) the Tenant
Improvements shall be constructed in strict accordance with the Approved Working

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-7-
	 	[Third Amendment]

 

 

Drawings; and (ii) Tenant’s Agents shall submit schedules of all work relating to the Tenant’s
Improvements to Contractor and Contractor shall, within ten (10) business days of receipt thereof,
inform Tenant’s Agents of any changes which are necessary thereto, and Tenant’s Agents shall adhere
to such corrected schedule.

               4.2.2.2 Indemnity. Tenant’s indemnity of Landlord as set forth in this Lease shall
also apply with respect to any and all costs, losses, damages, injuries and liabilities related in
any way to any act or omission of Tenant or Tenant’s Agents, or anyone directly or indirectly
employed by any of them, or in connection with Tenant’s non-payment of any amount arising out of
the Tenant Improvements and/or Tenant’s disapproval of all or any portion of any request for
payment. The foregoing indemnity shall not apply to claims caused by the negligence or willful
misconduct of Landlord, its member partners, shareholders, officers, directors, agents, employees,
and/or contractors.

               4.2.2.3 Requirements of Tenant’s Agents. Each of Tenant’s Agents shall guarantee to
Tenant and for the benefit of Landlord that the portion of the Tenant Improvements for which it is
responsible shall be free from any defects in workmanship and materials for a period of not less
than one (1) year from the date of substantial completion of the work under the Contract
(“Substantial Completion”). Each of Tenant’s Agents shall be responsible for the replacement or
repair, without additional charge, of all work done or furnished in accordance with its contract
that shall become defective within one (1) year after Substantial Completion. The correction of
such work shall include, without additional charge, all additional expenses and damages incurred in
connection with such removal or replacement of all or any part of the Tenant Improvements, and/or
the Building and/or common areas that may be damaged or disturbed thereby. All such warranties or
guarantees as to materials or workmanship of or with respect to the Tenant Improvements shall be
contained in the Contract or subcontract and shall be written such that such guarantees or
warranties shall inure to the benefit of both Landlord and Tenant, as their respective interests
may appear, and can be directly enforced by either. Tenant covenants to give to Landlord any
assignment or other assurances which may be necessary to effect such right of direct enforcement.

               4.2.2.4 Insurance Requirements.

                    4.2.2.4.1 General Coverages. All of Tenant’s Agents shall carry worker’s
compensation insurance covering all of their respective employees, and shall also carry public
liability insurance, including property damage, all with limits, in form and with companies as are
required to be carried by Tenant as set forth in this Lease.

                    4.2.2.4.2 Special Coverages. Tenant shall carry “Builder’s All Risk” insurance in an
amount reasonably approved by Landlord covering the construction of the Tenant Improvements, and
such other insurance as Landlord may reasonably require, it being understood and agreed that the
Tenant Improvements shall be insured by Tenant pursuant to this Lease immediately upon completion
thereof. Such insurance shall be in amounts and shall include such extended coverage endorsements
as may be reasonably required by Landlord including, but not limited to, the requirement that all
of Tenant’s Agents, including all contractors, shall carry general liability, including Products
and Completed Operation Coverage insurance, each in amounts not less than $2,000,000 per incident,
$2,000,000 in aggregate, as well as workers compensation insurance and in form and with companies
as are required to be carried by Tenant as set forth in this Lease, or such commercially reasonable
lesser amounts as

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-8-
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reasonably approved by Landlord based on the scope of any particular phase of construction of
the Tenant Improvements.

                    4.2.2.4.3 General Terms. Certificates for all insurance carried pursuant to this
Section 4.2.2.4 shall be delivered to Landlord before the commencement of construction of
the Tenant Improvements and before any equipment of Tenant’s Agents is moved onto the site. All
such policies of insurance must contain a provision that the company writing said policy will
endeavor to give Landlord thirty (30) days prior written notice of any cancellation or lapse of the
effective date or any reduction in the amounts of such insurance. Tenant shall provide Landlord
notice of any cancellation or lapse of the effective date or reduction in the amounts of such
insurance promptly following Tenant’s receipt of such notice from its insurer. In the event that
the Tenant Improvements are damaged by any cause during the course of the construction thereof,
Tenant shall immediately repair the same at Tenant’s sole cost and expense. Tenant’s Agents shall
maintain all of the foregoing insurance coverage in force until the Tenant Improvements are fully
completed and accepted by Landlord, except for Products and Completed Operations Coverage insurance
required by Landlord, which is to be maintained for a commercially reasonable period following
completion of the Tenant Improvements and acceptance by Landlord and Tenant. The builders risk
policy carried under this Section 4.2.2.4 shall name Landlord as an additional insured.
All insurance maintained by Tenant’s Agents shall preclude subrogation claims by the insurer
against anyone insured thereunder, and the public liability insurance shall name Landlord, HCP,
Inc., Project Management Advisors, Inc., CB Richard Ellis, or other manager of the Project, as an
additional insured or loss payee, as applicable. Such insurance shall provide that it is primary
insurance and that any other insurance maintained by Landlord is excess and noncontributing with
the insurance required hereunder. The requirements for the foregoing insurance shall not serve to
limit the indemnification of Landlord by Tenant under Section 4.2.2.2 of this Tenant Work
Letter.

          4.2.3 Governmental Compliance. The Tenant Improvements shall comply in all respects
with the following: (i) all state, federal, city or quasi-governmental laws, codes, ordinances and
regulations, as each may apply according to the rulings of the controlling public official, agent
or other person; (ii) applicable standards of the American Insurance Association (formerly, the
National Board of Fire Underwriters) and the National Electrical Code; and (iii) building material
manufacturer’s specifications.

          4.2.4 Inspection by Landlord. Landlord shall have the right to inspect the Tenant
Improvements at all reasonable times upon reasonable prior notice, provided however, that
Landlord’s failure to inspect the Tenant Improvements shall in no event constitute a waiver of any
of Landlord’s rights hereunder nor shall Landlord’s inspection of the Tenant Improvements
constitute Landlord’s approval of the same. Should Landlord reasonably disapprove any portion of
the Tenant Improvements, on the grounds that the construction is defective or fails to comply with
the Approved Working Drawings, Landlord shall notify Tenant in writing of such disapproval and
shall specify the items disapproved. Any such defects or deviations shall be rectified by Tenant
at no expense to Landlord, provided however, that in the event Landlord determines that a defect or
deviation exists that might adversely affect the mechanical, electrical, plumbing, heating,
ventilating and air conditioning or life-safety systems of the Building, the structure or exterior
appearance of the Building or any other tenant’s use of such other tenant’s leased premises,
Landlord may, take such action as Landlord reasonably

					
	 	 	 	 	 
	 
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	 	 	 	[Cytokinetics, Inc.]
	 
	 	-9-
	 	[Third Amendment]

 

 

deems necessary, at Tenant’s expense and without incurring any liability on Landlord’s part,
to correct any such defect, deviation and/or matter, including, without limitation, causing the
cessation of performance of the construction of the Tenant Improvements until such time as the
defect, deviation and/or matter is corrected to Landlord’s reasonable satisfaction.

          4.2.5 Meetings. During periods of substantial Tenant Improvement construction
activity in the Premises, Tenant shall hold weekly meetings, or on a less frequent basis as
reasonably agreed upon by Landlord based on the scope of a particular phase of construction of the
Tenant Improvements. Any such meetings shall be held at a reasonable time, and shall include the
Architect and the Contractor and shall address the progress of the construction of the Tenant
Improvements, and Landlord and/or its agents shall receive prior notice of, and shall have the
right to attend, all such meetings, and, upon Landlord’s reasonable request, certain of Tenant’s
Agents shall attend such meetings. At Landlord’s request, a copy of any minutes taken at such
meetings shall be promptly delivered to Landlord. One such meeting each month may include the
review of Contractor’s current request for payment.

     4.3 Notice of Completion; Copy of Record Set of Plans. Within ten (10) business days
after completion of construction of the Tenant Improvements, Tenant shall cause a valid Notice of
Completion to be recorded in the office of the Recorder of the county in which the Building is
located in accordance with Section 3093 of the Civil Code of the State of California or any
successor statute, and shall furnish a copy thereof to Landlord upon such recordation. If Tenant
fails to do so, Landlord may execute and file the same on behalf of Tenant as Tenant’s agent for
such purpose, at Tenant’s sole cost and expense. At the conclusion of construction, (i) Tenant
shall cause the Architect and Contractor (x) to update the Approved Working Drawings as necessary
to reflect all changes made to the Approved Working Drawings during the course of construction, (y)
to certify to the best of their knowledge that the “record-set” of as-built drawings are true and
correct, which certification shall survive the expiration or termination of this Lease, and (z) to
deliver to Landlord two (2) sets of copies of such record set of drawings (hard copy and CAD files)
within ninety (90) days following issuance of a certificate of occupancy for the Premises, and (ii)
Tenant shall deliver to Landlord a copy of all warranties, guaranties, and operating manuals and
information relating to the improvements, equipment, and systems in the Premises. Within fifteen
(15) days after request by Tenant following the Substantial Completion of the Tenant Improvements,
Landlord will acknowledge its approval of the Tenant Improvements (provided that such approval has
been granted) by placing its signature on a Contractor’s Certificate of Substantial Completion
fully executed by the Architect, Contractor and Tenant. Landlord’s approval shall not create any
contingent liabilities for Landlord with respect to any latent quality, design, Code compliance or
other like matters that may arise subsequent to Landlord’s approval.

SECTION 5

MISCELLANEOUS

     5.1 Tenant’s Representative. Tenant has designated Robert McCollough as its sole
representative with respect to the matters set forth in this Tenant Work Letter, who shall each
have full authority and responsibility to act on behalf of the Tenant as required in this Tenant
Work Letter. Tenant may replace its representative by written notice to Landlord.

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-10-
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     5.2 Landlord’s Representative. Landlord has designated Bernie Baker and/or Jeff
Marcowitz with PMA, as its sole representatives with respect to the matters set forth in this
Tenant Work Letter, who, until further notice to Tenant, shall have full authority and
responsibility to act on behalf of the Landlord as required in this Tenant Work Letter.

     5.3 Time is of the Essence in This Tenant Work Letter. Unless otherwise indicated,
all references herein to a “number of days” shall mean and refer to calendar days. If any item
requiring approval is timely disapproved by Landlord, the procedure for preparation of the document
and approval thereof shall be repeated until the document is approved by Landlord.

     5.4 Tenant’s Lease Default. Notwithstanding any provision to the contrary contained
in the Lease or this Tenant Work Letter, if any default by Tenant under the Lease or this Tenant
Work Letter (including, without limitation, any failure by Tenant to fund any portion of the
Over-Allowance Amount) occurs at any time on or before the substantial completion of the Tenant
Improvements and such default remains uncured ten (10) business days following Landlord’s notice of
such default to Tenant, then in addition to all other rights and remedies granted to Landlord
pursuant to the Lease, Landlord shall have the right to withhold payment of all or any portion of
the Tenant Improvement Allowance and/or Landlord may, without any liability whatsoever, cause the
cessation of construction of the Tenant Improvements (in which case, Tenant shall be responsible
for any delay in the substantial completion of the Tenant Improvements and any costs occasioned
thereby).

     5.5 Occupancy of the Existing Premises During Construction of the Tenant Improvements.
Tenant hereby acknowledges that Tenant shall be occupying the Premises during the construction of
the Landlord Work. Tenant hereby acknowledges that, notwithstanding Tenant’s occupancy of the
Premises during the construction of the Landlord Work, Landlord shall be permitted to construct the
Landlord Work during normal business hours, provided, however, that Landlord provides Tenant with
at least five (5) business days’ prior notice of Landlord’s intent to commence construction of any
phase of the Landlord Work. Tenant hereby agrees that the construction of the Landlord Work shall
in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of rent
or damages of any kind. Furthermore, in no event shall Tenant be entitled to any compensation or
damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s
personal property or improvements resulting from the construction of the Landlord Work or
Landlord’s actions in connection with the construction of the Landlord Work, or for any
inconvenience or annoyance occasioned by the Landlord in connection with the construction of the
Landlord Work, except to the extent caused by the gross negligence or willful misconduct of
Landlord, its members, partners, shareholders, officers, directors, agents, employees and/or
contractors. Landlord shall use commercially reasonable efforts to minimize any interference with
Tenant’s access to and use of the Premises during the construction of the Landlord Work.

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	 	 	[Cytokinetics, Inc.]
	 
	 	-11-
	 	[Third Amendment]

 

 

SCHEDULE 1

LANDLORD WORK ITEMS AND SCHEDULE OF COMPLETION

	 	 	 	 	 
	2011	 	2012	 	2013
	Air conditioning units:
	 	Air conditioning units:
	 	Air handlers nos. 1 & 2
	AC-1
	 	AC-6
	 	
	AC-2
	 	AC-7
	 	Boiler B-1
	AC-3
	 	AC-8	 	 
	AC-5
	 	AC-9	 	4 exhaust fans
	8 exhaust fans
	 	AC-10

AC-11	 	 
	 
	 	AC-12	 	 
	 	 	 	 	 
	 
	 	Boiler B-3	 	 
	 	 	 	 	 
	 
	 	6 exhaust fans	 	 

					
	 	 	 	 	 
	 
	 	 	 	BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	SCHEDULE 1
	 	 [Cytokinetics, Inc.]
	 
	 	-1-
	 	[Third Amendment]

 

 

SCHEDULE 2

LOCATION OF LANDLORD WORK

					
	 	 	 	 	 
	 
	 	SCHEDULE 2
	 	 
	 
	 	LOCATION OF
	 	 BRITANNIA POINTE GRAND BUSINESS PARK
	 
	 	LANDLORD WORK
	 	 [Cytokinetics, Inc.]
	 
	 	-1-
	 	[Third Amendment]

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