Document:

exv10w10w3

 

Exhibit 10.10.3

CONFIDENTIAL

LEASE AND INSTALLATION AGREEMENT

     This Lease and Installation Agreement (the “Agreement”) is executed this 20th day of August,
2004, by and between TA Operating Corporation (“Landlord”) and IdleAire Technologies Corporation
(“Lessee”).

RECITALS:

     WHEREAS, Landlord is the owner and/or operator of the travel centers which are located at the
addresses listed on Exhibit A hereto (hereinafter referred to individually as a “Travel
Center" and collectively being referred to as the “Travel Centers”); and

     WHEREAS, Lessee has developed the concept and an apparatus (the “Unit”) which heats and cools
the interior of vehicles using only electrical power; and

     WHEREAS, Lessee can install these Units in a manner that will allow drivers to heat and cool
their vehicles while parked at the Travel Centers without idling their engines, as well as provide
in-cab 120 volt AC power, shore power, local connections to basic internet, basic television, and
local telephone services; and

     WHEREAS, Landlord and Lessee have previously entered into a Lease and Installation Agreement
dated May 12, 2003, as amended, providing for the installation of the Units at
Landlord‘s Travel Centers in Paulsboro, New Jersey and Dallas, San Antonio and Baytown,
Texas (the “Original Lease Agreement”); and

     WHEREAS, Landlord desires to have these Units installed at all of its Travel Centers to
provide services to its customers and to insure that the installations do not interfere with its
operations; and

     WHEREAS, Lessee is willing to install the Units at all of the Travel Centers and to pay to
Landlord a portion of the revenues derived from the provision of services at the Travel Centers.

     NOW, THEREFORE, in consideration of the above, the mutual covenants and conditions set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:

     1. Premises. Subject to the terms and conditions of this Agreement, and in
consideration of the monies to be paid to Landlord by Lessee, and the conditions and agreements to
be observed and performed by Lessee, Landlord hereby demises and leases to Lessee a portion of the
parking lot located at each Travel Center as more particularly described in Section 4(a) below (the
“Premises”). Lessee is not granted exclusive possession of the Premises and Landlord retains the
right to occupy and utilize the Premises.

 

			
	***	 	Indicates where material is omitted pursuant to a confidential treatment request and filed separately with the Commission.

 

 

     2. Term.

          (a) Except as otherwise provided herein, the term of this Agreement shall be for a period of
[***] , commencing with the date of execution set forth above.

          (b) The Agreement shall automatically renew for [***] if Landlord receives [***] (as defined
below) from Lessee during the [***] of this Agreement [***] from each parking space at which a Unit
has been installed at each of the Travel Centers and Lessee is not otherwise in default under the
terms of this Agreement at the time of such renewal.

          (c) In the event Landlord closes a Travel Center during the term of this Agreement, Landlord
shall have the right to terminate this Agreement early with respect to such Travel Center without
penalty or cost by providing sixty (60) days advanced written notice of termination to Lessee;
provided that Landlord may not terminate this Agreement early with respect to more than five (5)
Travel Centers pursuant to this Section 2(c) during any [***] period during the term of this
Agreement and closures resulting from condemnations or other takings as provided in Section 7(c)
shall not count toward this limitation.

     3. Lease Consideration.

          (a) Beginning sixty (60) days following the commencement of Services (as defined below) from
any Unit at each Travel Center pursuant to Paragraph 6 below, Lessee agrees to pay to Landlord the
consideration set forth in the Revenue and Profit Allocation Schedule attached hereto as
Exhibit B (the “Lease Consideration”). Lessee will report monthly to Landlord
the revenues generated. Each such monthly report shall be in the form attached hereto as
Exhibit C (with such additional information as Landlord may reasonably request from time to
time) and provided to Landlord within twenty-five (25) days of the end of each calendar month
accompanied by payment to Landlord by Lessee of the Lease Consideration. In addition, Lessee shall
provide Landlord with prior written notice at least forty-five (45) days prior to any changes from
time to time in the prices it charges customers for the Services, and shall not reduce prices from
the level in effect on the date of this Agreement by more than 20% without the prior written
consent of Landlord.

     4. Use of Premises.

          (a) Lessee shall, at its sole cost and expense, have the right and obligation to install the
Units and provide the services specifically listed on
Exhibit E, Section I (the “Basic
Services”) only at the truck parking spaces approved in advance in writing by Landlord
for each respective Travel Center. Lessee shall not make the Services available anywhere else at
the Travel Centers except at the truck parking spaces approved by Landlord with the understanding
that wireless internet access may be available to IdleAire customers wherever they choose to access
it. Under no circumstances will Lessee be permitted to deliver any physical products to customers
at the Travel Centers except for the items listed on Exhibit E, Section III, or

 

			
	***	 	Indicates where material is omitted pursuant to a confidential treatment request and filed separately with the Commission.

- 2 -

 

additional
items approved in writing by Landlord. Except for pre-existing contractual obligations for any
Travel Centers purchased by Landlord after the date of this Agreement, Landlord shall not permit
any person other than Lessee to install any device, equipment or apparatus in the parking lot for
provision of any Basic Services on the parking areas for which Landlord receives Lease
Consideration from Lessee, or to otherwise provide in-cab heating and/or cooling of
tractor-trailers at the Travel Centers, during the term of this Agreement provided Lessee is not in
breach of the terms of this Agreement and no default has occurred or is continuing. The foregoing
sentence shall apply to “wired-based” solutions only, shall not in any way restrict
Landlord‘s customers‘ use of self-contained equipment for the provision of
Basic Services or prohibit Landlord from offering, directly or indirectly, wireless internet access
at the Travel Centers.

          (b) Other
than the auxiliary services listed on Exhibit E, Section II. (the “Auxiliary
Services”), Lessee shall not offer or provide any goods or services other than the Basic
Services without the prior written approval of Landlord, which approval Landlord may withhold in
Landlord‘s sole discretion. In the event Lessee desires to offer other services Lessee
shall provide a written request to Landlord containing a complete description of the proposed
services to be offered and a proposal on the revenue sharing with respect to such services.
Auxiliary Services, together with Basic Services, are sometimes collectively referred to herein as
the “Services”.

     5. Landlord’s Obligations.

          (a) Landlord will maintain and repair, at its cost, the Travel Center truck parking areas at
which a Unit has been installed in a manner in keeping with the normal parking lot maintenance for
such Travel Center. Lessee hereby acknowledges that no maintenance or repair is required by
Landlord on the effective date of this Agreement and that Lessee is accepting the Travel Centers in
their present, “as-is” condition. Under no circumstances will Landlord be required to reconfigure
or re-stripe its existing truck parking areas, unless the parties mutually agree to do so in which
event the costs will be borne by Lessee, except as otherwise provided in Section 6(b) below. In
connection with the periodic re-paving of the truck parking areas by Landlord, Lessee shall provide
Landlord reasonable assistance to allow efficient access for the paving equipment in and around the
parking spaces at which the Units are installed.

          (b) Landlord will cooperate with Lessee to keep all Travel Center parking areas at which Units
will be installed clear such that Lessee may install its Units without interruption and such that
professional drivers have, subject to periodic maintenance and acts outside of Landlord’s control,
unimpeded access to the Units after installation. Landlord shall cooperate with Lessee to assist
Lessee to complete its installation process, but Landlord shall not be required to incur any costs
in this regard.

          (c) Landlord will allow Lessee to promote, in the parking areas at each Travel Center, the
Services listed on Exhibit E in a manner consistent with its promotions for the Services throughout
Lessee’s entire network. Further, Landlord will allow placement at Lessee’s cost of one (1) vending
machine, one (1) video monitor, POS materials, promotional advertising and video feeds through the
video monitor for Lessee’s use in connection with the rental and

- 3 -

 

promotion of the Units inside each
Travel Center with the placement and content to be mutually agreed upon prior to installation. The
POS materials, promotional advertising and video feeds shall not promote the Basic Services and
Auxiliary Services separate and apart from the core services of in cab heating and air
conditioning, in cab AC and in cab shore power and shall be subject to approval by Landlord which
will be deemed granted unless Lessee receives within ten (10) days of mailing or faxing of the
proposed material(s) to Landlord, written notice from Landlord that Landlord does not approve the
use of such material(s). Such written notice shall specify the reason(s) why Landlord does not
approve and such failure to approve shall not be based upon the fact that the Service(s) to be
promoted compete(s) with a service provided by Landlord.

          (d) Landlord will allow, and provide space and servicing for, the retail sale of IdleAire
pre-paid debit cards at each Travel Center and will collect all revenues therefor. Lessee will
consider working with Landlord’s over-the-counter point of sale activation vendor from time to time
to provide for point of sale activation of Lessee’s prepaid cards on such platform. Lessee shall,
subject to Landlord’s approval, develop an operations manual describing the retail sales process
for use by
Landlord’s employees. Lessee shall invoice Landlord on a monthly basis for all revenues owed
by Landlord from the sale of the IdleAire pre-paid debit cards within ten (10) days of each
calendar month end and Landlord shall provide payment to Lessee for all such revenues within twenty
five (25) days of each calendar month end.

          (e) Landlord shall allow Lessee to install, at Lessee’s sole cost and expense, and in
accordance with blue prints and procedures approved in writing by Landlord prior to the
commencement of installation, above ground and in the Equipment Area (as defined below), all of the
Units, mechanical supporting structures, distribution equipment, cabling and conduit for electrical
power, telephone and cable television, centralized servers, routers and other equipment, utility
service connections for electrical power, telephone, cable television and internet access,
equipment and related items necessary for proper operation of the Units and to provide the Services
at the designated truck parking spaces identified on the blue prints approved by Landlord at each
respective Travel Center (the “IdleAire System”).

          (f) Landlord shall, for the Term of this Agreement (and any renewal term), allow Lessee
unimpeded access to the Equipment Area and the truck parking spaces at which the Units are to be
installed for purposes of installing, maintaining, monitoring, repairing, replacing and operating
the IdleAire System and for the purpose of providing the Services. Lessee agrees to provide
advance notice to Landlord’s general manager at each Travel Center of Lessee’s intentions regarding
daily activity at the site involving third party contractors or relating to construction or
maintenance activities that may impede traffic flow.

          (g) Landlord shall allow Lessee (i) to construct and maintain, at Lessee’s sole cost and
expense, a portable building at a location and with a size and design approved in writing in
advance by Landlord in which to install the IdleAire System which may include video monitors and
kiosks for prepaid sales attached to the portable building (hereinafter referred to as the
“Equipment Area”).

- 4 -

 

          (h) Landlord shall, subject to periodic maintenance and acts outside of Landlord’s control,
take no action to discourage, limit or impair utilization of the Units, Services or the IdleAire
System. Notwithstanding the foregoing, Lessee acknowledges that the truck parking spaces at the
Travel Centers will be available to truck drivers on a first-come, first-served basis and that the
truck parking spaces at which the Units have been installed will not be reserved for the exclusive
use of truck drivers electing to utilize the IdleAire System and Services. Lessee also hereby
acknowledges that Landlord may from time to time charge a fee for truck drivers to park in the
parking spaces at certain of the Travel Centers according to terms determined by Landlord and that
Landlord shall not be obligated to share any portion of the parking fees with Lessee. In the event
Landlord provides customers a credit against the parking fee for dollars spent by the customer at
the Travel Center, Landlord agrees to count dollars spent by the customer on Lessee’s Services at
the Travel Center during the particular stay. In addition, Lessee acknowledges that Landlord may
establish priority or restricted parking spaces in its parking lots from time to time for certain
customers as determined by Landlord.

          (i) In addition to the Lease Consideration to be paid to Landlord hereunder, Lessee agrees
that the greater of [***] of the [***], or [***] of the [***] of any funds received by Lessee with
regard to the generation, sale, trading or other use of [***] resulting from the installation of
the Equipment on the Truck Parking Areas shall be paid to Landlord by Lessee.

          (j) Landlord may during the term of this Agreement acquire or construct additional travel
centers not listed on Exhibit A. In the event any such travel center is already subject to
a lease with Lessee at the time Landlord acquires the travel center, such travel center will become
subject to the terms of this Agreement and any prior lease applicable to such location will be void
at the time Landlord acquires the travel center. In the event any such travel center is not subject
to a lease with Lessee at the time Landlord acquires it, then such location will be automatically
added to this Agreement provided that Lessee is in compliance with the terms of this Agreement and
completes the installation of the Units at all truck parking spaces at the travel center (1) by the
third anniversary of the date of execution of this Agreement for travel centers acquired or
constructed by Landlord on or before the second anniversary of the date of execution of this
Agreement, or (2) within eighteen months of the date of acquisition or construction for travel
centers acquired or constructed by Landlord after the second anniversary of the date of execution
of this Agreement. Notwithstanding the foregoing, in the event a newly acquired travel center is
subject to pre-existing contractual restrictions on Landlord’s ability to permit Lessee to install
or operate the IdleAire System, Lessee’s obligation to install the IdleAire System at such location
shall not accrue until the pre-existing contractual restrictions expire or are terminated. In the
event Lessee does not complete installation of the Units at all of the truck parking spaces at the
travel center within the time periods specified above in this sub-section, then Landlord may remove
from this Agreement such travel center.

          (k) Landlord may from time to time construct additional structures or add on to existing
facilities at the Travel Centers. In the event such construction or additions result in a loss of
truck parking spaces at a Travel Center for which Units have been previously installed by

 

			
	***	 	Indicates where material is omitted pursuant
to a confidential treatment request and filed separately with the Commission.

- 5 -

 

Lessee,
then Landlord shall pay Lessee the actual costs incurred by Lessee in removing the Units and
re-installing the Units either at the affected Travel Center or another Travel Center. In lieu of
making such payment to Lessee, Landlord may at its option agree to provide Lessee a credit against
future Lease Consideration payable to Landlord for the affected Travel Center. The foregoing
obligation of the Landlord shall not apply in the event the facility construction or addition by
Landlord results from a condemnation or other taking of the Travel Center premises and the parties
rights in such circumstances shall be as provided in Section 7(c) below.

     6. Lessee’s Obligations.

          (a) On or before the [***] of the date of execution of this Agreement, Lessee shall install,
at Lessee’s sole cost and expense, the Units, the IdleAire System and the Equipment Area
(collectively, the “System”) at each Travel Center in a high quality, workmanlike and efficient
manner and in accordance with location-specific blue prints and procedures previously approved in
writing by Landlord prior to commencement of installation for each location. Without limiting the
generality of the foregoing, during the course of installation at each Travel Center, Lessee shall
take all reasonable steps to minimize the disruption to the traffic flow and the availability of
parking spaces at each Travel Center and, unless mutually agreed otherwise, no more than five (5)
truck parking spaces will be blocked at any one time for the purpose of installing or performing
maintenance or repairs on the System. Under no circumstances will the installation result in a net
reduction of truck parking spaces at each Travel Center. Subject to Landlord’s written approval of
final location blueprints for each installation, Lessee shall install the Units at all build-able
truck parking spaces at each Travel Center. Lessee shall complete the installations at Landlord’s
Travel Centers on a priority basis over any other installations of the System in the same markets
or funding regions as Landlord’s Travel Centers. Notwithstanding anything contained in this
Agreement to the contrary, at Travel Centers not currently subject to anti-idling regulations
Lessee shall be permitted to install Units in phases at each Travel
Center with a minimum number of Units per phase of 50 Units. Landlord may remove from this
Agreement any Travel Center at which Lessee has not completed the installation of 50 Units by the
third anniversary of the date of execution of this Agreement. Lessee’s obligation to install the
System at any of the Travel Centers is subject to: (i) Landlord having ownership or control over
such Travel Center at the time Lessee commences installation of the System; (ii) Landlord and
Lessee agreeing on the construction methods and materials with respect to the installation of the
System at such Travel Center; (iii) completion of satisfactory engineering and environmental
surveys at such Travel Center; (iv) confirmation that no part of the System crosses a public right
of way adjacent to such Travel Center; (v) receipt from Landlord of all requested maps, blue prints
and other relevant information already in the possession of Landlord relating to such Travel Center
on a timely basis; (v) receipt by Landlord of consent from its landlord at any Travel Centers
leased by Landlord; and (vii) Lessee not being able to complete any such installation because of
any of the following: floods, civil unrest, acts of God; war; governmental interference or
embargoes; labor strikes; failure of others to supply permits, fuel, power, materials or supplies;
transportation delays by third parties; or any other cause (whether or not

 

			
	***	 	Indicates where material is omitted
pursuant to a confidential treatment request and filed separately with the
Commission.

- 6 -

 

similar to those
described in this Section 6(a)) beyond the control of Lessee. As soon as Lessee becomes aware of
the need for any easements relating to the installation of the System, Lessee shall notify
Landlord. The placement and terms of any easement shall be subject to the prior approval of
Landlord. All costs arising from the creation, modification or removal of any easement shall be the
responsibility of Lessee.

          (b) Lessee shall use best efforts not to cause any damage to the Travel Center duringthe
installation, maintenance and/or operation of the System at each Travel Center, including, without
limitation, using best efforts to avoid digging in the area of any underground utilities presently
serving or crossing the Travel Centers. Lessee shall immediately cause to be removed any mechanics
liens, or other restrictions on Landlord’s title in the Travel Centers, resulting from the
installation or existence of the System at the Travel Centers. Lessee shall promptly repair, at its
sole cost and expense, any damage to the Travel Center or surrounding property that is caused by
Lessee or results from the installation, operation, maintenance or existence of the System at each
Travel Center. However, Lessee shall not be responsible for any existing defects or deficiencies or
the normal wear and tear to the parking lot or the Travel Center. Lessee shall provide Landlord
prompt written notice of any defects or deficiencies discovered by Lessee during installation.
Lessee shall remove any remaining PNV bollards from the entire parking lot at each Travel Center at
the time Lessee is first installing the System at a Travel Center. Lessee shall bear the expense of
removal of the bollards and surface patching in the vicinity of the parking lot where Units are
being installed in such phase. Landlord shall reimburse Lessee its direct out-of-pocket cost of
bollard removal and surface patching for those portions of the parking lot where removal is not
necessary for the installation of Units in such phase, provided that Lessee shall repay such
amounts to Landlord at the time Units are later installed in those portions of the parking lot as
required by Section 6(a) above. All bollard removals and surface patching shall be done in
accordance with a scope of work approved in advance by Landlord, and Lessee shall obtain
Landlord‘s prior written approval of the portion of the cost of bollard removal and
surface patching at each location for which Landlord will reimburse Lessee as provided in the
immediately preceding sentence. Lessee shall seal and re-stripe the entire parking lot in
accordance with blueprints approved in writing in advance by Landlord at each Travel Center at the
time Lessee is first installing the System at a Travel Center. Lessee shall bear the expense of
sealing and re-striping the parking lot in the vicinity of the parking lot where Units are being
installed in such phase. Landlord shall reimburse Lessee its direct out-of-pocket cost of sealing
and re-striping for those portions of the parking lot where removal is not necessary for the
installation of Units in such phase, provided that Lessee shall repay such amounts to Landlord at
the time Units are later installed in those portions of the parking lot as required by Section 6(a)
above. All sealing and re-striping shall be done in accordance with a scope of work approved in
advance by Landlord, and Lessee shall obtain
Landlord‘s prior written approval of the portion of the cost of sealing and
re-striping at each location for which Landlord will reimburse Lessee as provided in the
immediately preceding sentence.

          (c) Lessee shall, at its own cost and expense, on a timely basis secure, and continuously
maintain in full force and effect, all licenses, permits and approvals required with respect to the
installation, operation and maintenance of the System and the provision of the

- 7 -

 

Services. Lessee
shall at all times comply with all applicable laws, rules, tariffs, regulations, etc. in connection
with the installation, operation and maintenance of the System, the provisions of the Services, or
otherwise related to the performance of Lessee‘s obligations hereunder.

          (d) Lessee shall, at its own cost and expense, maintain and repair the Units, Equipment Area
and the System and keep the same in good condition at all times during the term of this Agreement.
Lessee shall use all reasonable efforts to keep all of the Units operational twenty-four (24) hours
per day, three hundred sixty-five (365) days per year; however, at no time will fewer than eighty
percent (80%) of the Units at each Travel Center be fully operational. Lessee shall locate at least
one (1) employee at each Travel Center on a twenty-four (24) hours per day, three hundred
sixty-five (365) days per year basis to respond to customer service requests. Lessee shall require
all of its employees to abide by Landlord’s employee guidelines as they reasonably relate to
conduct of Lessee’s employees in a Travel Center while present at a Travel Center. In addition,
Lessee shall maintain, and advertise to customers, a toll free telephone number for customer access
to a 24 hour help desk. In the event any Unit is not operational, Lessee will repair the Unit and
make it fully operational within fourteen (14) days of the original failure. Lessee shall design,
install and maintain the Units and the System so that it has sufficient capacity to provide the
Services (except for movies on demand) to each parking space at which a Unit has been installed.
Lessee acknowledges that Landlord has no responsibility for maintenance or repairs to the System,
including inspection or reporting of equipment or service outages. Without limiting the generality
of the foregoing, Lessee acknowledges that Landlord has no responsibility for damage to the System
resulting from misuse, vandalism or accident, except for damage to the System resulting directly
from accidents caused by the negligence of Landlord’s employees.

          (e) Lessee shall promptly respond to all reasonable requests from Landlord from time to time
for information regarding the installation, maintenance and operation of the System at the Travel
Centers.

          (f) Lessee shall timely pay all taxes, including, without limitation, taxes arising from the
provision of the Services and personal or real property taxes, related to the existence or
operation of the Units, Equipment Area, System or any other property owned by Lessee and located at
the Travel Centers, except for sales taxes related to over-the-counter sales which shall be the
responsibility of Landlord and shall be charged to customers in addition to the costs for the
Services.

          (g) Lessee shall provide Landlord (1) within ninety (90) days after the close of each fiscal
year of Lessee, audited financial statements of Lessee as of the end of such fiscal year; and (2)
within forty-five (45) days after the close of each of Lessee’s first three fiscal quarters each
year, an un-audited balance sheet of Lessee as of the end of such fiscal quarter and un-audited
statements of operations and cash flows of Lessee for the fiscal quarter just ended.

          (h) Lessee shall upgrade the Units and the System from time to time at each Travel Center so
that the Units and the System are equal to or better than the best units or system offered by
Lessee or its affiliates at any other truck stop or travel center location.

- 8 -

 

     7. Rights and Duties of the Parties with Respect to the Units and Related Equipment.

          (a) Notwithstanding the fact that certain parts of the Units may be affixed to each Travel
Center, neither the Units nor such parts of the Units shall become a fixture and the Units shall
remain the property of Lessee. Landlord acknowledges that the Units and the Services, and the
manner of their operation and installation, are proprietary to Lessee. Accordingly, Landlord shall
use reasonable efforts to insure that all information and data concerning the Units and the
Services shall not be divulged and Landlord shall not use any of such information or data for its
own purposes or to compete with Lessee in any manner. Likewise, Lessee shall use reasonable efforts
to insure that all information and data concerning Landlord or Landlord‘s operations at
the Travel Centers shall not be divulged and Lessee shall not use any of such information or data
for its own purposes or to compete with Landlord in any manner.

          (b) Upon the expiration or termination of this Agreement for any reason, Lessee shall have the
right and obligation to, within 120 days of the date of expiration or termination: (i) remove, at
its sole cost and expense, the System and related equipment from each Travel Center; or (ii) at
Landlord’s sole option, sell or lease it to the Landlord or its successors, nominees or assigns
together with a license to any technology or software needed to operate the System. After removal,
Lessee shall restore each Travel Center as near as reasonably possible to the condition of such
Premises prior to the installation of the System, normal wear and tear excepted, but shall not be
obligated or permitted to remove any underground cable, conduit, wiring or subsurface concrete
foundations. Lessee shall be obligated to remove any above surface concrete or improvements and
repair the parking lot so that it is a smooth, flush surface. Lessee shall bear all costs of
removal or vacation of any easements created for the installation or operation of the System upon
terms acceptable to Landlord. Any components of the System or other equipment or improvement not
removed within 120 days of the date of expiration or termination may be treated as abandoned by
Landlord and Landlord may either keep such equipment or improvement or have such equipment or
improvement removed at Lessee’s expense.

          (c) In the event of the condemnation or other taking, in whole or in part, of the Premises
under the power of eminent domain or otherwise, the condemnation award paid to the Landlord, or the
payment received by the Landlord in exchange for its voluntary conveyance in lieu of condemnation,
shall belong solely to the Landlord, and Lessee shall not, by virtue of this Agreement, be entitled
to any part thereof; provided, however, that nothing in this Agreement shall
preclude Lessee from prosecuting any claim directly against the condemning authority for loss of
business, or depreciation to, damage to, or cost of, removal of, or for the value of personal
property of Lessee; and further provided, however, that no such claim shall
diminish or otherwise adversely affect the Landlord’s award or proceeds.

          (d) Lessee agrees that it will deposit into an escrow account (the “Escrow
Account”) in the manner hereinafter provided $250 for each Unit installed at each Travel
Center, as hereinafter provided, during the period commencing with the date of this Agreement and
will

- 9 -

 

continue until such time that the total amount deposited into the Escrow Account equals
$2,000,000 (excluding any interest earned). The Escrow Account will be funded out of gross revenues
at the Travel Center where each Unit is installed at the rate of $10 per month, per Unit (gross
revenues permitting), commencing on the date of this Agreement for locations already installed and
on the date Lease Consideration becomes payable to Landlord under Section 3 of this Agreement for
all other locations, and continuing until $250 per installed unit has been escrowed, or until the
total of the Escrow Account, exclusive of interest, equals $2,000,000. The amounts deposited by
Lessee into the Escrow Account shall not count as an expense for purposes of determining Lease
Consideration under Exhibit B to this Agreement. Each month in which Lessee is obligated to make
escrow deposits hereunder, Lessee shall provide Landlord a written report reflecting the amounts
deposited with the Escrow Agent during the preceding month. This report shall be given no later
than the date Lessee’s monthly report of revenues
and expenses is due under Section 3 of this Agreement. Landlord shall further be entitled to
receive from the Escrow Agent a duplicate copy of the monthly statement rendered to Lessee in
connection with the Escrow Account. The Escrow Account shall be established with and held by
National City Bank, or another financial institution mutually agreeable to the parties (the “Escrow
Agent’’), pursuant to an Escrow Agreement substantially in the form of Exhibit F hereto (the
“Escrow Agreement"). All interest earned on or appreciation in the value of the Escrow
Account shall remain in the Escrow Account and shall accrue for the benefit of, and be payable to,
Lessee or Landlord in accordance with the terms of the Escrow Agreement. All fees and expenses
charged by the Escrow Agent shall be paid out of the gross revenues at each Travel Center in
proportion to the amounts deposited into escrow with respect to that Travel Center and will be
deducted as an expense for purposes of determining Lease Consideration under Exhibit B to this
Agreement. Subject to the remaining provisions of this Section, Landlord and Lessee agree that the
total amount placed in the Escrow Account shall be payable to Lessee following termination of the
Lease Agreement as provided in the Escrow Agreement unless Landlord has made a valid claim against
the Escrow Account as set forth in the Escrow Agreement. To initiate disbursement by the Escrow
Agent, Lessee or Landlord shall serve a Disbursement Instruction to Escrow Agent as described in
Section 4(b) of the Escrow Agreement. If Escrow Agent has not received an objection to the
Disbursement Instruction within 15 calendar days of Escrow Agent providing notice to the parties of
the receipt of the Disbursement Instruction, Escrow Agent shall disburse so much of the principal
amount of the Escrow Fund as is requested in the Disbursement Instruction, with the remainder of
the principal amount, together with all accrued interest and appreciation thereon, to be
distributed to Lessee. Any disbursement withheld by the Escrow Agent pursuant to an objection shall
be disbursed by Escrow Agent in accordance with Section 4 of the Escrow Agreement. When Escrow
Agent has disbursed the Escrow Fund in full, the Escrow Agreement shall terminate and the Escrow
Agent shall be discharged. Landlord agrees that Lessee may at any time substitute other collateral
of equivalent security, if acceptable to Landlord, for some or all of the Escrow Account. Lessee’s
failure to make a deposit into escrow as to any Travel Center shall be treated as a default or
breach by Lessee in the payment of Lease Consideration to Landlord as to that Travel Center,
entitling Landlord to the relief set forth this Agreement, including, without limitation, the right
to terminate this Agreement as provided herein. The existence of the Escrow Account shall not in
any way diminish Lessee’s obligations under this Agreement, including, without limitation, Section
7(b) above.

- 10 -

 

     8. Representations and Warranties of Lessee.

          (a) Lessee is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has full power and authority: (i) to enter into this Agreement;
and (ii) to carry out the other transactions and agreements contemplated by this Agreement.

          (b) The execution, delivery and performance of this Agreement by Lessee have been duly
authorized by all necessary action of Lessee. This Agreement, and each of the other documents to be
executed and delivered by Lessee pursuant to this Agreement, have been duly executed and delivered
by Lessee and are the valid and binding obligations of Lessee, enforceable in accordance with their
respective terms, subject only as to enforceability affected by bankruptcy, insolvency or similar
laws affecting the rights of creditors generally and by general equitable principles. The
execution, delivery and performance of this Agreement, and the other documents to be executed,
delivered and performed by Lessee pursuant to this Agreement, will not: (i) conflict with or
violate any provision of Lessee’s organizational documents, or any law, ordinance or regulation, or
any decree or order of any court or administrative or other governmental body, which is either
applicable to, binding upon or enforceable against Lessee; or (ii) result in any breach of, or
default under, or cause
the acceleration of performance of any mortgage, contract, agreement, indenture or other
instrument which is either binding upon or enforceable against Lessee.

          (c) Lessee is not required to obtain the approval, consent or waiver of any other person or
entity for the execution, delivery or performance of this Agreement.

          (d) Lessee has provided to Landlord audited financial statements for Lessee for the most
recently completed fiscal year of Lessee. Lessee represents that it has the capital available to
install and operate the System at the Travel Centers in accordance with the terms of this
Agreement:

          (e) All of the information contained in the representations and warranties of Lessee set forth
in this Agreement, or in any of the documents delivered, or to be delivered herewith or after the
execution hereof, as set forth in any provision of this Agreement, is true, accurate and complete.

     9. Representations and Warranties of Landlord.

          (a) Landlord is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, and has full corporate power and authority; (i) to enter into this
Agreement; and (ii) to carry out the other transactions and agreements contemplated by this
Agreement.

          (b) The execution, delivery and performance of this Agreement by Landlord have been duly
authorized by all necessary corporate action of Landlord. This Agreement, and each of the other
documents to be executed and delivered by Landlord pursuant to this Agreement, have been duly
executed and delivered by Landlord, and are the valid and binding

- 11 -

 

obligations of Landlord,
enforceable in accordance with their respective terms, subject only as to enforceability affected
by bankruptcy, insolvency or similar laws affecting the rights of creditors generally and by
general equitable principles. The execution, delivery and performance of this Agreement, and the
other documents to be executed, delivered and performed by Landlord pursuant to this Agreement,
will not: (i) conflict with or violate any provision of Landlord’s charter, bylaws or any law,
ordinance or regulation, or any decree or order of any court or administrative or other
governmental body which is either applicable to, binding upon or enforceable against Landlord; or
(ii) result in any breach of, or default under, or cause the acceleration of performance of any
mortgage, contract, agreement, indenture or other instrument which is either binding upon or
enforceable against Landlord.

          (c) Landlord is not required to obtain the approval, consent or waiver of any other person or
entity for the execution, delivery or performance of this Agreement.

          (d) All of the information contained in the representations and warranties of Landlord set
forth in this Agreement, or in any of the documents delivered or to be delivered herewith or after
the execution hereof as set forth in any provision of this Agreement, is true, accurate and
complete.

     10. Waiver of Subrogation. Each party hereto waives any and every claim which may
arise in its favor against the other party hereto during the term of this Agreement, or any renewal
or extension hereof, for any and all loss of, or damage to, any of its property located without or
upon or constituting a part of the Premises leased hereunder, if such loss or damage is covered by
valid and collectible fire and extended coverage insurance policies, and only to the extent that
such loss or damage is recoverable under said insurance policies. Said mutual waivers shall be in
addition to, and not in limitation or derogation of, any other
waiver or release contained in this Agreement with respect to any loss of, or damage to,
property of the parties hereto. Inasmuch as the above mutual waivers will preclude the assignment
of any claim described above by way of subrogation (or otherwise) to an insurance company (or any
other person), each party hereto agrees immediately to give to each insurance company which has
issued to it policies of fire and extended coverage insurance written notice of the terms of said
mutual waivers and to have said insurance policies properly endorsed, if necessary, to prevent the
invalidation of said insurance coverage by reason of said waivers.

     11. Indemnity. Lessee shall bear the risk of loss and hereby indemnifies and holds
harmless Landlord for (i) damage to or destruction of any property, including with out limitation,
damage to the Travel Center, the Units, the Equipment Area and the System, arising from the
existence, installation, operation, utilization or repair of, or otherwise in any way related to,
the Units, the Equipment Area, the Services and the System, except to the extent such damage is
caused by the gross negligence or willful misconduct of Landlord, its employees, contractors or
agents, and (ii) injury to, or death of, any person arising from the existence, installation,
operation, utilization or repair of, or otherwise in any way related to, the Units, the Equipment
Area, the Services and the System, except to the extent such damage is occasioned by the gross
negligence or willful misconduct of Landlord, its agents, employees, contractors, or agents. The
foregoing indemnity obligations of Lessee shall include reasonable attorneys’ fees, investigation
costs and all

- 12 -

 

other costs and expenses incurred by Landlord from the first notice that any claim or
demand has been made or may be made. The provisions of this Section 11 shall survive the
termination of this Agreement.

     12. Insurance. Both Landlord and Lessee shall maintain during the Term of this
Agreement (or any renewal term), at their sole cost and expense, commercial general liability
insurance in the minimum amount of Three Million Dollars ($3,000,000.00) plus an umbrella policy
providing total coverage of at least $5,000,000 against any claims arising out of its own
respective negligence and any liabilities arising out of its respective products and/or services,
shall ensure that each party is named as an additional insured in respect of such insurance or is
otherwise covered as its interest may appear. Each party hereto shall provide to the other party a
certificate of insurance evidencing insurance coverage in compliance with this Section 12. Lessee
and Landlord shall review the amount and terms of insurance coverage on an annual basis and make
such adjustments as may be reasonably necessary based upon the prior years’ claims experience and
other factors affecting the appropriate level of coverage.

     13. Force Majeure. Neither party shall have any liability for the failure to perform
or a delay in performing any of its obligations if such failure or delay is the result of any legal
restriction, labor dispute, strike, boycott (other than labor disputes, strikes or boycott’s
directly involving a party’s employees), flood, fire, public emergency, revolution, insurrection,
riot, was, unavoidable mechanical failure, interruption in the supply of electrical power or any
other cause beyond the control of any party acting in a reasonable business-like manner, whether
similar or dissimilar to the causes enumerated above. Notwithstanding the foregoing, in the event
either party is unable to perform as a result of one of the above-described circumstances for a
period of one hundred and eighty (180) days, the other party shall have the right to terminate this
Agreement with respect to the affected Travel Center(s).

     14. Assignment/Subordination/Estoppel.

          (a) Landlord may sell, assign, transfer or otherwise dispose of its interest in one or more of
the Travel Centers (through a change of control or otherwise) (collectively, a “Disposal”) provided
that in the event of a Disposal of all of the Travel Centers the acquiror of such interest or
assets shall assume the Landlord’s rights and obligations hereunder and shall be bound by the Terms
of this Agreement, in which case Lessee shall recognize the acquiror of such Travel Centers as its
Landlord for the purposes of this Agreement. In the event of a Disposal of less than all of the
Travel Centers, Landlord and Lessee shall take all reasonable steps to cause the acquiror of such
Travel Center(s) to enter into a separate agreement with Lessee with respect to such Travel
Center(s) on the same terms as contained in this Agreement pertaining to such Travel Center(s) for
the then remaining term of this Agreement. In the event the acquiror of such Travel Center(s) is
unwilling to enter into such separate agreement, Landlord may terminate this Agreement with respect
to such Travel Center (1) without penalty or cost for the first two (2) Travel Centers terminated
pursuant to this Section 14(a), or (2) by, at Landlord’s option, paying Lessee (i) the actual costs
of relocating and installing the Units at an alternative location, or (ii) the unamortized portion
of Lessee’s actual costs incurred in installing the System at such Travel

- 13 -

 

Center, amortized on a
straight line basis over ten (10) years, for any Travel Centers in excess of two (2) terminated
pursuant to this Section 14(a).

          (b) Lessee may pledge its interest in this Agreement to any party, including, without
limitation, to any bank, recognized lending or leasing institution or investor as collateral.
Lessee may sell, assign, transfer or otherwise dispose of its interest in this Agreement, provided
that the acquiror of such interest is not the owner or operator of one or more truck stops or
travel centers and provided further that said acquiror shall assume all of Lessee’s rights and
obligations hereunder and shall be bound by the terms of this Agreement. No such sale, assignment,
transfer or other disposal shall relieve Lessee of its obligations under this Agreement without the
prior written consent of Landlord.

          (c) This Agreement shall be subordinate to each and every underlying lease, deed of trust or
mortgage encumbering the Premises or any portion thereof, whether now existing or in the future,
and to any advances made on the security thereof and to any renewals, modifications,
consolidations, replacements or extensions thereof, whenever made or recorded. Landlord shall use
commercially reasonable efforts to obtain a non-disturbance agreement from all current and future
holders of mortgages or deeds of trust affecting the Premises (hereinafter collectively referred to
as the “Mortgagees”); provided, however, that Landlord shall not be required to pay any sum
demanded by any Mortgagee consideration for any such non-disturbance agreement. If any ground
lessor, beneficiary or mortgagee elects to have this Agreement prior to the lien of its ground
lease, deed of trust or mortgage and gives written notice thereof to Lessee, this Agreement shall
automatically be deemed prior to such ground lease, deed of trust or mortgage whether this
Agreement is dated prior or subsequent to the date of said ground lease, deed of trust or mortgage
or the date of recording thereof. Lessee shall sign and deliver any instrument or documents
necessary or appropriate to evidence any attornment or subordination or agreement to do so. If
Lessee fails to do so within twenty (20) days after written request, Lessee hereby makes,
constitutes and irrevocably appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact, coupled with an interest, of Lessee to execute and deliver any such instrument or
document.

          (d) Lessee shall from time to time, within ten (10) days after being requested to do so by
Landlord, execute, acknowledge and deliver to Landlord (or, at the Landlord’s request, to any
existing or prospective purchaser, transferee, assignee or mortgagee of any or all of the Leased
Premises, any interest therein or any of the Landlord‘s rights under this Agreement) an
instrument in recordable form certifying (i) that this Agreement is unmodified and in full force
and effect (or, if there has been any modification thereof, that it is in full force and effect as
so modified, stating therein the nature of such modification); (ii) as to the amount of any prepaid
rent or any credit due to Lessee
hereunder; (iii) as to whether, to the best knowledge, information and belief of the signer of
such certificate, Landlord or Lessee is then in default in performing any of its obligations under
this Agreement (and, if so, specifying the nature of each such default); and (iv) as to any other
fact or condition reasonably requested by Landlord or such other addressee.

- 14 -

 

     15. Ownership and Confidentiality. Landlord recognizes and agrees that Lessee shall,
during the Term of this Agreement and thereafter, retain sole ownership of the System. Landlord
recognizes the proprietary nature of the concept and the design of the System and Lessee recognized
the proprietary nature of certain information regarding Landlord’s business and locations.
Accordingly, Landlord and Lessee agree to maintain, and cause each of its employees and agents to
maintain, and keep strictly confidential all confidential information of the other party,
including, without limitation, the terms of this Agreement, that it obtains or receives in
conjunction with the installation and operation of the System under this Agreement. Landlord
further agrees that the “IdleAire” name and logo shall be and remain the property of Lessee and all
references by Landlord to the Units or the Services shall incorporate and/or refer to Lessee by its
full name (“IdleAire”), whether in literature, electronic or print displays, articles, advertising,
billboards, banners or otherwise. The name “IdleAire” is, or will be, a registered service mark of
Lessee and, to the extent required by Lessee, Landlord shall execute a no cost limited license
agreement for the use of such service mark. Except for the use of Landlord’s name or trademarks in
press releases approved by Landlord pursuant to Section 21, nothing in this Agreement shall grant
to Lessee any rights to Landlord‘s name, logos, trademarks or service marks.

     16. No Estate in Land. This Agreement shall create the relationship of Landlord and
Lessee between the parties hereto; no estate shall pass out of Landlord. Lessee has only a
usufruct, not subject to levy and sale, and not assignable by Lessee except as provided in Section
14 hereof.

     17. Holding Over. If Lessee remains in possession of the Premises after expiration of
the Term, with Landlord‘s acquiescence and without any express agreement of the parties,
Lessee shall be a tenant under a month-to-month tenancy at the same Lease Consideration in effect
at the end of this Agreement (and subject to all terms and conditions of this Agreement except as
modified by this Section 17), and there shall be no renewal of this Agreement by operation of law.

     18. Defaults. In the event either party hereto shall breach or otherwise become in
default of any of its obligations hereunder, then:

          (a) The non-defaulting party shall be entitled to have and recover all of its damages and
losses arising out of such default from the defaulting party; and

          (b) The non-defaulting party shall have the right to terminate this Agreement upon notice of
intent to terminate being given to the defaulting party unless the defaulting party cures such
default and pays to the non-defaulting party all losses and damages incurred by the non-defaulting
party within a period of thirty (30) days following notice of default having been given to the
defaulting party by the non-defaulting party (except for payment defaults which must be cured
within fifteen (15) days following notice of default). In addition to the foregoing, in the event
Lessee fails to pay the
Lease Consideration within twenty five (25) days of the end of each calendar month as provided
in Section 3(b) on two (2) or more occasions in any twelve (12) month period, Landlord shall have
the unrestricted right to terminate this Agreement by providing written notice of termination to
Lessee.

- 15 -

 

     19. Franchise Locations. In addition to the Travel Centers identified on Exhibit
A, as of the date of this Agreement twenty-three (23) additional travel centers as listed on
Exhibit D are operated by independent franchisees of TA Franchise Systems Inc., an
affiliate of Landlord (“Franchise Locations”). During the thirty-six (36) month period following
the execution date of this Agreement, Lessee shall install the IdleAire System at all Franchise
Locations who elect to enter into a lease agreement with Lessee. Landlord shall use reasonable
efforts to encourage all Franchise Locations to enter into lease agreements with Lessee, however
Lessee acknowledges that Landlord cannot guarantee that all Franchise Locations will elect to enter
into a lease agreement. Lessee hereby acknowledges that the Franchise Locations are operated by
independent third parties and Landlord is not responsible for the acts or omissions of the
operators of the Franchise Locations. Lessee will offer lease terms substantially similar to the
terms of this Agreement, as approved in advance by Landlord, to each Franchise Location. In the
event Landlord’s affiliates enter into franchise relationships with additional travel centers not
listed on Exhibit D during the term of this Agreement, Lessee shall similarly offer to
enter into lease agreements with such additional Franchise Locations and install the IdleAire
System at such additional Franchise Locations (1) by the third anniversary of the date of execution
of this Agreement for additional Franchise Locations added on or before the second anniversary of
the date of execution of this Agreement, or (2) within eighteen months of the date such additional
Franchise Location becomes a franchise for Franchise Locations added after the second anniversary
of the date of execution of this Agreement. In the event a Franchise Location at which the System
has been installed becomes a Landlord company-operated location during the term of this Agreement,
the converted location will become subject to the terms of this Agreement and the prior lease
applicable to such location will be void at the time Landlord begins operating the travel center.

     20. Rights Cumulative. All rights, powers and privileges conferred hereunder upon
either party hereto shall be cumulative but not restrictive to those given at law or in equity.

     21. Press Releases. Lessee and Landlord shall consult with each other as to the form
and content of all press releases and other public disclosures of matters relating to this
Agreement. Nothing in this section shall prohibit Lessee or Landlord from making any disclosure,
which its legal counsel deems necessary or advisable to fulfill such party’s disclosure obligations
under applicable law. All public disclosures shall be transmitted by telecopier to the other party
or its counsel for approval prior to publication or dissemination.

     22. Notices.

          (a) Any notice, election, or other communication required or permitted hereunder shall be in
writing and shall be either: (i) sent by same-day or overnight courier service, or (ii) sent by
certified or registered United States mail, return receipt requested, postage and charges prepaid,
to the following address:

	 	 	 	 	 
	 

	 	To Landlord:
	 	TA Operating Corporation
	 

	 	 	 	24601 Center Ridge Road, Suite 200
	 

	 	 	 	Westlake, Ohio 44145
	 

	 	 	 	Attn: Vice President — Retail Marketing
	 
	 	 	 	 
	 	 	With a required copy to the same address Attn: General Counsel.

- 16 -

 

	 	 	 	 	 
	 

	 	To Lessee:
	 	IdleAire Technologies Corporation
	 

	 	 	 	900 S. Gay Street, Ste. 300
	 

	 	 	 	Knoxville, Tennessee 37902
	 

	 	 	 	Attn: Senior Vice President and General Counsel

          (b) Any notice, election or other communication delivered or mailed as aforesaid shall, if
couriered by same-day or overnight delivery service, be deemed received on the date of delivery to
such addressee or address regardless of whether accepted, and if mailed, be deemed received upon
date of actual receipt or on the third (3rd) calendar day subsequent to date of postmark, whichever
is earlier.

          (c) Each party hereof may change its address and addressee for notice, election, and other
communication from time to time by notifying the other parties hereto of the new address and
addressee in the manner provided for giving notice herein.

          (d) Any notice shall be deemed received if provided as aforesaid to any of the above-named
attorneys and to the above-named parties, regardless if accepted or rejected.

     23. Parties. “Landlord,” as used in this Agreement, shall include Landlord and its
heirs, executors, legal representatives, successors and assigns and successor in title to the
Premises. “Lessee” shall include Lessee and its heirs, executors, legal representatives, successors
and, if this Agreement is validly assigned or sublet, its assigns or sublessees. “Landlord” and
“Lessee” shall include male and female, singular and plural, corporation, partnership or
individual, as may fit the particular parties.

     24. Severability. If any part or sub-part of this Agreement is found or held to be
invalid, that invalidity shall not affect the enforceability and binding nature of any other part
of this Agreement.

     25. Favored Nations. Lessee agrees that during the Term of this Agreement Lessee and
its Affiliates shall enter into no contractual arrangement with any other travel center or truck
stop with up front payments, Lease Consideration or any other economic consideration paid to, or
otherwise received by, any other travel center or truck stop more favorable than those provided to
Landlord hereunder, without also making such offer available to Landlord. In addition, in the event
Lessee or its Affiliates enter into an arrangement with any other travel center or truck stop
providing for gross receipts percentages payable to the travel center/truck stop operator greater
than 15%, then the gross receipts percentages payable to Landlord pursuant to Exhibit B
shall be increased so that Landlord’s gross receipts percentages are 2% higher than the
gross receipts percentages payable by Lessee or its Affiliates to all other travel center/truck
stop operators.

     26. Headings. The section headings contained in this Agreement are for convenience only and shall not
enlarge or limit the scope or meaning of the various and several sections hereof. Words in the
singular number shall be held to include the plural, unless the context otherwise requires.

- 17 -

 

     27. Entire Agreement; Modification. This Agreement and the exhibits, riders and
schedules attached hereto set forth the entire agreement between the parties and cancel all prior
negotiations, arrangements, brochures, agreements, and understandings, if any, between Landlord and
Lessee regarding the subject matter of this Agreement, including, without limitation, the Letter of
Intent dated February 6, 2002. No amendment or modification of this Agreement shall be binding or
valid unless expressed in a writing executed by both parties hereto. This Agreement shall supersede
and replace the terms of the Original Lease Agreement as to the four (4) Travel Centers covered
thereby, provided that Landlord shall retain all Initial Payments (as defined in the Original Lease
Agreement).

     28. Litigation; Prevailing Party. If litigation is brought with regard to this
Agreement, the prevailing party shall be entitled to receive from the non-prevailing party, and the
non-prevailing party shall immediately pay upon demand, all reasonable fees and expenses of counsel
of the prevailing party.

     29. Audits. During the term of this Agreement, upon fifteen (15) days written notice
being given to Lessee by Landlord, Landlord shall have the right to inspect or audit any and all
books and records related to calculation of the Lease Consideration to be paid to Landlord pursuant
to Paragraph 3(b) hereof or the verification of Lessee’s compliance with the terms of this
Agreement, including, without limitation, the terms of Section 25 above. Lessee’s officers and
employees shall cooperate with and facilitate Landlord‘s inspection and audit. Any such
inspection or audit shall be solely at Landlord’s expense.

     30. Arbitration. Any controversy, dispute or question arising out of, or in
connection with, or in relation to this Agreement or the interpretation, performance or
non-performance or any breach thereof shall be determined by arbitration conducted in Atlanta, GA
in accordance with the then existing rules of the American Arbitration Association. Lessee and
Landlord shall each select one arbitrator, and the two arbitrators shall select a third with the
same qualifications. Any decision rendered shall be binding upon the Parties, however, the
arbitrators shall have no authority to grant any relief that is inconsistent with this Agreement.
The expense of arbitration shall be borne by the non-prevailing Party.

     31. Counterparts. This Agreement may be executed in one or more counterparts, each of
which when so executed shall be deemed to be an original, and all of which together shall
constitute one and the same instrument.

- 18 -

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed pursuant to
appropriate authority duly given, hereunto affixed the day and year first above written.

LANDLORD:

TA OPERATING CORPORATION

By: /s/ Timothy L. Doane 

Title: President

LESSEE:

IDLEAIRE TECHNOLOGIES CORPORATION

By: /s/ Michael C. Crabtree

Title: President & CEO

- 19 -

 

EXHIBIT A

COMPANY OWNED/COMPANY OPERATED

	081	 	Albuquerque, NM
	 
	055	 	Amarillo, TX (West)
	 
	089	 	Ann Arbor, MI
	 
	117	 	Antioch, TN
	 
	001	 	Ashland, VA
	 
	216	 	Baltimore, MD
	 
	151	 	Baltimore South, MD (Jessup)
	 
	067	 	Barkeyville, PA (Harrisville)
	 
	017	 	Baytown, TX
	 
	207	 	Binghampton, NY
	 
	092	 	Bloomington, IL
	 
	212	 	Bloomsburg, PA
	 
	048	 	Bloomsbury, NJ
	 
	167	 	Boise, ID
	 
	003	 	Brookville, PA
	 
	160	 	Buttonwillow, CA
	 
	221	 	Candler, NC
	 
	146	 	Cartersville, GA
	 
	187	 	Cheyenne, WI (Burns)
	 
	030	 	Chicago North, IL
	 
	028	 	Cincinnati S., KY (Walton)
	 
	041	 	Coachella, CA

 

 

	006	 	Columbia, NJ
	 
	156	 	Commerce, GA
	 
	018	 	Concordia, MO
	 
	040	 	Corning, CA
	 
	066	 	Council Bluffs, IA
	 
	150	 	Dallas South, TX
	 
	208	 	Dansville, NY
	 
	011	 	Dayton, OH
	 
	148	 	Denver, CO (East)
	 
	174	 	Denver, CO (West)
	 
	035	 	Effingham, IL
	 
	044	 	Elgin, IL
	 
	019	 	Elkton, MD
	 
	007	 	Eloy, AZ
	 
	093	 	Florence, KY
	 
	157	 	Franklin, TN
	 
	188	 	Ft. Bridger, WY
	 
	209	 	Fultonville, NY
	 
	008	 	Gallup, NM
	 
	010	 	Gary, IN (Griffith)
	 
	193	 	Grand Island West, NE (Alda)
	 
	213	 	Greencastle, PA
	 
	211	 	Greenland, NH
	 
	002	 	Greensboro, NC

Exhibit A - Page 2

 

	215	 	Harborcreek, PA (Erie)
	 
	012	 	Harrisburg, PA
	 
	039	 	Hebron, OH (Columbus E.)
	 
	192	 	Hudson, WI
	 
	149	 	Hurricane, WV
	 
	139	 	Jeffersonville, OH (Nat-East)
	 
	094	 	Kingman, AZ
	 
	029	 	Kingsville, OH
013 Knoxville, TN
	 
	161	 	Lafayette, LA
	 
	219	 	Lake Station, IN
	 
	068	 	Lamar, PA
	 
	014	 	Las Cruces, NM
	 
	108	 	Las Vegas, NV
	 
	015	 	Lodi, OH (Seville)
	 
	024	 	London, OH (Columbus W.)
	 
	045	 	Madison, GA
	 
	050	 	Madison, WI (Deforest)
	 
	179	 	Manning, SC
	 
	178	 	Marianna, FL
	 
	051	 	Matthews, MO
	 
	210	 	Maybrook, NY
	 
	047	 	Meridian, MS
	 
	214	 	Milesburg, PA

Exhibit A - Page 3

 

	181	 	Mill City, NV
	 
	154	 	Milldale, CT (Southington)
	 
	054	 	Mobile, AL
	 
	069	 	Monroe, MI
	 
	043	 	Mount Veron, IL
	 
	034	 	Nashville, TN
	 
	171	 	New Haven, CT (Branford)
	 
	095	 	North Canton, OH
	 
	052	 	Oak Grove, MO
	 
	090	 	Ogallala, NE
	 
	036	 	Oklahoma City, OK (East)
	 
	059	 	Oklahoma City, OK (Nat)(West)
	 
	026	 	Ontario, CA (East)
	 
	162	 	Ontario, CA (West)
	 
	186	 	Parowan, UT
	 
	218	 	Paulsboro, NJ
	 
	220	 	Porter, IN
	 
	056	 	Portland, OR
	 
	057	 	Redding, CA
	 
	142	 	Richmond, VA (Ashland)
	 
	021	 	Roanoke, VA
	 
	049	 	Rockwall, TX
	 
	190	 	Rogers, MN
	 
	060	 	Salt Lake City, UT (Tooele)
	 
	147	 	San Antonio, TX

Exhibit A - Page 4

 

	163	 	Santa Nella, CA
	 
	023	 	Santa Rose, NM
	 
	177	 	Savannah, GA (Richmond Hill)
	 
	116	 	Sawyer, MI
	 
	152	 	Sayre, OK
	 
	176	 	Seattle, WA (East)
	 
	065	 	Seymour, IN
	 
	180	 	Slidell, AL
	 
	172	 	Sparks, NV
	 
	025	 	Spartanburg, SC (Duncan)
	 
	175	 	St. Louis MO (West)
	 
	046	 	Tallulah, LA
	 
	158	 	Tampa, FL
	 
	087	 	Toledo, OH
	 
	183	 	Troutdale, OR
	 
	016	 	Tuscaloosa, AL (Cottondale)
	 
	033	 	West Memphis, AR (Earle)
	 
	032	 	Wheeling, WV (Valley Grove)
	 
	173	 	Whitestown, IN
	 
	053	 	Wildwood, FL
	 
	022	 	Willington, CT
	 
	601	 	Woodstock, CN
	 
	143	 	Wytheville, VA
	 
	058	 	Youngstown, OH

Exhibit A - Page 5

 

EXHIBIT B

Revenue and Profit Allocation Schedule

	 	 	 	 	 	 	 	 	 
	 	 	DESCRIPTION OF
SERVICE OR SALE	 	LANDLORD’S PORTION
	 

	 	 	 	 	 	 	 	 
	A.	 	Basic
Services — [***] Based Programs	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	[***] from the retail
sale of IdleAire
service cards through
the travel center
cashiers.
	 	[***] retail price of
IdleAire service cards
shipped and invoiced
to the travel center
each month if
utilization is below
[***] at the travel
center, [***]of the
IdleAire service cards
shipped and invoiced
to the travel center
each month from dollar
one if utilization is
equal to or greater
than [***] at the
travel center.
	 

	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	[***] from usage of the
IdleAire System.
	 	[***] generated from
usage of IdleAire
System Services per
location each month if
utilization is below
[***] at the travel
center, [***] of [***]
generated from usage
of IdleAire System
Services each month
per location from
dollar one if
utilization is equal
to or greater than
[***] at the travel
center.
	 

	 	 	 	 	 	 	 	 
	B.

	 	Auxiliary
Services — [***] or [***] Based
Programs
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	[***] or [***] derived
from the sale of long
distance phone time.
	 	Greater of [***] of
[***] or [***] of
[***]
	 

	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	[***] or [***] derived
from Premium Movie
Sales.
	 	Greater of [***] of
[***] or [***] of
[***]
	 

	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	[***] or [***] derived
from all other
auxiliary services.
	 	Greater of [***] of
[***] or [***] of
[***]

[***]

[***]

[***]

 
 

*** Indicates where material is omitted pursuant to a confidential treatment request and filed
separately with the Commission.

 

 

Exhibit C

[Form of Monthly Report]

 

 

EXHIBIT D

FRANCHISE
LOCATIONS

	100	 	Atlanta South, GA (Jackson)
	 
	125	 	Baldwin, FL (Jacksonville)
	 
	102	 	Clayton, IN
	 
	103	 	Corfu, NY (Buffalo)
	 
	140	 	Denmark, TN (Jackson)
	 
	104	 	Denton, TX
	 
	107	 	Knoxville, TN
	 
	128	 	Lake Park, GA
	 
	111	 	Montgomery, AL
	 
	133	 	Saginaw, MI
	 
	126	 	St. Augustine, FL (Jacksonville)
	 
	113	 	Sweetwater, TX
	 
	115	 	Vero Beach, FL
	 
	134	 	Albert Lea, MN
	 
	070	 	(Beto Junction) Lebo, KS
	 
	075	 	Breezewood, PA
	 
	076	 	Edinburg, TX
	 
	078	 	(Eugene) Coburg, OR
	 
	071	 	Janesville, WI
	 
	074	 	Kenly, NC
	 
	072	 	Mt. Vernon, MO
	 
	137	 	Strafford, MO
	 
	077	 	Walcott, IA

 

 

EXHIBIT E

	I.	 	BASIC SERVICES: [Exclusive as to wired solution only]

     In-cab Heating and air conditioning

     In-cab AC (power and charging system)

     Shore power (external power and charging system) delivered from the Unit

     In-cab Basic Internet access

     In-cab Basic television

     In-cab Phone access

     In-cab Customer support for Basic Services

     In-cab Computer access

	II.	 	AUXILIARY SERVICES: [Non-Exclusive]

Prepaid IdleAire service cards (not convertible to prepaid calling cards or any
other service)

Refrigerated unit power delivered from the Unit

In-cab Computer services helpdesk

In-cab upgraded customer support services (direct dial though phone network to
the fleet or company, wake-up calls, electronic and conventional messaging,
secretarial service, tech support)

Security surveillance services delivered from the Unit

In-cab advertising on computer

In-cab e-commerce sales on computer

In-cab premium television

In-cab local and long-distance telephone services

In-cab video-on-demand/pay per view televisions

In-cab email accounts on computer

 

 

In-cab banking services through computer

In-truck ECM/ECU engine date retrieval

In-truck DC power and charging system

In-cab high speed Internet with Ethernet or wireless access

	III.	 	PRODUCTS:

Window Adaptors

12 ft coax cable

Ethernet Cable (RJ 45)

Telephone Cell Style (conair model)

Remote Control

Wired Keyboard without trackball

Zonet network card

Keyboard wireless w/mouse

Wireless starter kits

IdleAire Debit Member Cards

Complete kit includes (tote box,12 ft coax cable, conair phone, wireless keyboard )

Exhibit E - Page 2

 

EXHIBIT F

ESCROW AGREEMENT

     This Escrow Agreement is made and entered into this ___day of                     , 2004, by and among
IdleAire Technologies Corporation (“IdleAire”), TA Operating (“TA”) and                                         
(“Escrow Agreement”).

WITNESSETH:

     WHEREAS, pursuant to a Lease and Installation Agreement and addendum to the Lease and
Installation Agreement dated the ___day of                     , 2004 (collectively the “Lease
Agreement”) between IdleAire and TA, IdleAire has agreed to escrow the sum of $250 for each Unit of
IdleAire’s advanced travel center electrification center installed by IdleAire at TA travel
centers, up to a total of $2,000,000 (exclusive of interest), as set forth herein; and

     WHEREAS, Escrow Agent is willing to serve as the escrow agent required by the Lease Agreement;
and

     WHEREAS, by its signature hereinbelow, TA consents to the appointment of Escrow Agent and to
the terms and conditions hereinafter set forth.

     NOW, THEREFORE, for and in consideration of the premises, and other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly acknowledged, IdleAire and
Escrow Agent agree as follows:

SECTION 1. APPOINTMENT OF ESCROW AGENT.

     IdleAire hereby appoints Escrow Agent as the escrow agent under this Agreement on the terms
and conditions set forth herein. Escrow Agent hereby accepts its appointment as escrow agent and
agrees to carry out the duties and responsibilities set forth herein.

 

 

SECTION 2. THE ESCROW FUND OR ACCOUNT.

     (a) From time to time IdleAire shall tender to Escrow Agent the funds IdleAire is required to
escrow pursuant to the Lease Agreement for deposit in a segregated account maintained by Escrow
Account for the benefit of IdleAire and TA. All funds received by Escrow Agent pursuant to this
Agreement shall be held, invested and disbursed in accordance with the terms and conditions of this
Agreement. A copy of the Lease Agreement is attached as Exhibit 1.

     (b) The interest or other appreciation on the funds deposited with Escrow Agent pursuant to
this Agreement shall be added to the Escrow Account and become part of the Escrow Account as
earned.

     (c) Funds may be released or disbursed by Escrow Agent from the Escrow Account only under the
circumstances set forth in Section 4 hereof.

SECTION 3. INVESTMENT OF FUNDS BY ESCROW AGENT.

     Escrow Agent shall invest and reinvest all amounts from time to time credited to the Escrow
Account in (a) Escrow Agent’s U.S. Treasury money market fund; (b) direct obligations of, or
obligations of the principal and interest on which are unconditionally guaranteed by, the United
States of America; (c) repurchase agreements fully collateralized by securities described in clause
(b) above; (d) money market accounts maturing within 30 days of the acquisition thereof and issued
by a bank or trust company organized under the laws of the United States of America or of any of
the 50 states thereof (a “United States Bank”) and having combined capital, surplus and
undistributed profits in excess of $50,000,000; (e) demand deposits with any United States Bank
having combined capital, surplus and undistributed profits in excess of $50,000,000; or (f) as
directed in joint written instructions received from IdleAire and TA. Escrow Agent

Exhibit F - Page 2

 

shall provide quarterly statements to both IdleAire and TA showing account balance, investment
holdings, income, expenses and any disbursements occurring during the quarter.

SECTION 4. RELEASE OF FUNDS FROM THE ESCROW ACCOUNT.

     (a) Pursuant to Section 3. of the Addendum to Lease and Installation Agreement either IdleAire
or TA may give written instructions to Escrow Agent to disburse all or some portion of the Escrow
Account (a “Disbursement Notice”).

          (i) Disbursement Requested solely by IdleAire. IdleAire may submit a Disbursement
Notice to Escrow Agent at any time after 120 days following the date of expiration or termination
of the Lease Agreement for any reason other than the default or material breach of IdleAire,
provided that prior to submitting such Disbursement Notice IdleAire has completed the removal of
the IdleAire equipment from all of TA’s travel centers in accordance with the terms of the Lease
Agreement.

          (ii) Disbursement Requested solely by TA. TA may submit a Disbursement Notice only if
IdleAire defaults under the Lease Agreement by (a) failing to remove IdleAire equipment from a TA
travel center upon the expiration or termination of the Lease Agreement as to that travel center in
accordance with the terms of the Lease Agreement; or (b) defaulting in its obligation to pay lease
consideration to TA and failing to cure such default under the terms of the Lease Agreement; or (c)
at a time when IdleAire is the subject of a voluntary or involuntary petition in bankruptcy. Such
Disbursement Notice may only be for the actual costs incurred by TA for removal of the IdleAire
units and restoration of the parking lots covered by the TA Disbursement Notice.

Exhibit F - Page 3

 

          (iii) Joint Disbursement Request. At any time the parties may jointly submit a
Disbursement Notice with which Escrow Agent shall comply without need for complying with the
provisions herein relating to objections.

     (b) Within 72 hours of receiving a Disbursement Notice, Escrow Agent shall forward a copy
thereof to the other party in accordance with the Notice provisions set forth below. If Escrow
Agent has not received an objection to the Disbursement Notice within 15 days following Escrow
Agents forwarding the copy thereof to the other party, Escrow Agent shall promptly disburse from
the principal amount of the Escrow Account the amount requested in the Disbursement Notice to the
requesting party. If, within such 15-day period, Escrow Agent receives an objection from the
non-requesting party to the Disbursement Notice, Escrow Agent shall disburse to the requesting
party only such amount of the Escrow Account to which the non-requesting party has consented.

     (c) If the non-requesting party sends an objection to the Disbursement Notice, IdleAire and TA
shall use their best efforts to resolve such disputed claim. If the parties are unable to resolve
the disputed claim within thirty (30) days after the date the objection is received by the Escrow
Agent, then such disputed claim shall be settled solely and exclusively by arbitration to be held
in Atlanta, Georgia, in accordance with the then existing rules of the American Arbitration
Association. IdleAire and TA shall each select one arbitrator, and the two arbitrators shall
select a third with the same qualifications. Any decision rendered shall be binding upon the
parties, however, the arbitrators shall have no authority to grant any relief that is inconsistent
with this Agreement. The expense of arbitration shall be borne by the non-prevailing party. The
Escrow Agent shall abide by, and disburse the Escrow Account in accordance with, the arbitration
ruling.

Exhibit F - Page 4

 

SECTION 5. DUTIES AND LIABILITIES OF ESCROW AGENT.

     The Escrow Agent shall have no duty or obligation hereunder other than to take such specific
actions as are required of it from time to time by the provisions of this Agreement, and it shall
incur no liability hereunder or in connection herewith for anything whatsoever other than any
liability resulting from its own gross negligence or willful misconduct or unlawful acts or
omissions. The only duties and responsibilities of the Escrow Agent shall be the duties and
obligations specifically set forth in this Agreement. The Escrow Agent has no duty to perform any
calculations with respect to the proper amount to be deposited by IdleAire under the Lease
Agreement, or to ensure that such amounts are deposited with Escrow Agent.

SECTION 6. INDEMNIFICATION OF ESCROW AGENT.

     IdleAire shall indemnify, hold harmless and defend the Escrow Agent from and against any and
all losses, claims, liabilities and reasonable expenses, including reasonable attorney’s fees,
which it may suffer or incur in connection with the performance of its duties and obligations under
this Agreement and including any action taken under Section 4 hereof, except for those losses,
claims, liabilities and expenses resulting solely and directly from it own gross negligence,
willful misconduct, or unlawful act or omission. The Escrow Agent may seek the advice of counsel
at any time and such reasonable attorney fees shall be in addition to the administrative fees
charged by Escrow Agent for serving as Escrow Agent and the Escrow Agent may charge such costs
against the interest which accrues on the Escrow Account if not otherwise paid by IdleAire, but the
principal in the Escrow Account shall not be charged, used as an offset or otherwise encumbered by
the Escrow Agent or IdleAire.

Exhibit F - Page 5

 

SECTION 7. RESIGNATION OR REMOVAL OF ESCROW AGENT.

     Escrow Agent may resign at any time by giving IdleAire and TA 30 days’ prior written notice of
such intention. IdleAire and TA may jointly remove the Escrow Agent, as such, by giving the Escrow
Agent 30 days’ prior written notice of such removal. Upon the effective date of its resignation or
removal, the Escrow Agent will deliver the Escrow Funds held hereunder only to a successor escrow
agent named in the joint written instructions of IdleAire and TA. After the effective date of its
resignation or removal, the Escrow Agent shall have no duty with respect to the Escrow Funds except
to hold such property in safekeeping and deliver the Escrow Funds to its successor or as directed
by joint instructions from IdleAire and TA. If no successor escrow agent has been appointed by such
joint instructions within 60 days from the date such notice of resignation or removal has been
given, Escrow Agent shall be entitled to tender the Escrow Funds into the registry or custody of
any court of competent jurisdiction by giving notice of such action to IdleAire and TA.

SECTION 8. ESCROW AGENT FEES AND EXPENSES.

     IdleAire shall pay the Escrow Agent its reasonable fees and expenses, including all reasonable
expenses, charges, counsel fees and other disbursements incurred by it or by its attorneys, agents
and employees in the performance of its duties and obligation under this Agreement. If not paid by
IdleAire within 30 days of when due, fees costs and expenses payable to Escrow Agent hereunder may
be paid by Escrow Agent from interest earned on the Escrow Fund, but the principal of the Escrow
Funds shall not be charged or offset against the Escrow Fund.

Exhibit F - Page 6

 

SECTION 9. INTENDED BENEFICIARIES; SUCCESSORS.

     TA and its successors and assigns are the intended beneficiaries of this Agreement. No other
persons or entities are intended beneficiaries of this Agreement, and only IdleAire and TA, and its
successors and assigns, shall be entitled to enforce the terms of this Agreement.

SECTION 10. NOTICES.

     (a) Any notice required or permitted to be given by this Agreement shall be in writing, with a
copy provided simultaneously to TA, and shall be deemed to have been received (a) immediately if
sent by facsimile transmission (with a confirming copy sent the same Business Day by registered or
certified mail), or by hand delivery (with signed return receipt), or (b) the next Business Day if
sent by nationally recognized overnight courier, in any case at the following addresses, or such
other addresses as any party may, by Notice, designate:

If to Escrow Agent:

     If to IdleAire: IdleAire Technologies Corporation

410 North Cedar Bluff Road, Suite 200

Knoxville, Tennessee 37923

Attention: James H. Price, General Counsel

With a Copy to Chief Operating Officer

Fax No:

      If to TA: TA Operating Corporation

24601 Center Ridge Road, Suite 200

Westlake, Ohio 44145

Attn: Vice President — Retail Marketing

Fax No:

With a required copy to the same address

Attn: General Counsel.

Fax No: 440-808-4310

Exhibit F - Page 7

 

     (b) If either party changes its address for notices required by this Agreement, that entity
shall immediately notify the other parties in writing of the change of address. Written notice
required by this Agreement shall be sufficient and adequate if sent to the last know address of a
party in the manner provided under this Section.

SECTION 11. RESOLUTION OF DISPUTES.

     In the event of any disagreement resulting in adverse claims or demands being made on Escrow
Agent in connection herewith, the Escrow Agent may, at its option, refuse to comply with any claims
or demands on it, or refuse to take any other action hereunder, so long as such disagreement
continues, and in any such event, the Escrow Agent shall not be or become liable in any way or to
any person or entity for its failure or refusal to act, and the Escrow Agent shall be entitled to
continue to so refrain from acting until (i) the rights of all parties have been fully and finally
adjudicated by a court of competent jurisdiction, or (ii) all differences shall have been adjudged
and all doubt resolved by agreement among all of the interested parties, and the Escrow Agent shall
have been notified thereof in writing signed by all such persons. In addition to the foregoing,
the Escrow Agent is hereby authorized in the event of any such disagreement, to petition any court
of competent jurisdiction for instructions or to interplead the Escrow Fund into such court.
IdleAire and TA agree that upon final adjudication on such petition or interpleader action, Escrow
Agent will be relieved of further liability.

SECTION 12. MISCELLANEOUS PROVISIONS.

     Governing Law. This Agreement shall be construed in accordance with and governed by the laws
of the State of Tennessee.

     (a) Severability. If any provision of this Agreement shall under any circumstances be deemed
invalid or inoperative, this Agreement shall be construed with the invalid or inoperative

Exhibit F - Page 8

 

provisions deleted and the rights and obligations of the parties shall be construed and
enforced accordingly.

     (c) Amendments. This Agreement may be amended only by a written instrument executed by
IdleAire and Escrow Agent with the written approval of TA indicated thereon. The waiver by any
party, or TA, of any breach of this Agreement shall not be deemed to be or construed as a waiver of
any other breach, whether prior, subsequent or contemporaneous, of this Agreement, nor shall such
waiver be deemed to be or construed as a waiver by any other party.

     (d) Counterparts. This Agreement may be signed in any number of counterparts, each of which
shall be an original and one in the same instrument.

     (e) Captions. The captions herein are included for convenience of reference only and shall be
ignored in the construction and interpretation hereof.

Exhibit F - Page 9

 

IN WITNESS WHEREOF, this Agreement has been executed by the parties on the day and date first above
written.

	 	 	 	 	 
	IDLEAIRE TECHNOLOGIES CORPORATION	 	[ESCROW AGENT]
	 
	 	 	 	 
	By:

	 	 	 	By:
	 

	 	 	 	 
	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Its:

	 	 	 	Its:
	 

	 	 	 	 
	 
	 	 	 	 
	TA OPERATING CORPORATION	 	[ESCROW AGENT]
	 
	 	 	 	 
	By:

	 	 	 	By:
	 

	 	 	 	 
	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Its:

	 	 	 	Its:
	 

	 	 	 	 

Exhibit F - Page 10

 

FIRST ADDENDUM

TO LEASE AND INSTALLATION AGREEMENT

     This First Addendum to Lease and Installation Agreement (the “Addendum”) is executed this
15 day of July, 2004, by and between TA Operating Corporation, a Delaware corporation
having its principal place of business at 24601 Center Ridge Road, Suite 200,
Westlake, Ohio 44145-5634 (hereinafter referred to as “Landlord), and IdleAire Technologies
Corporation, a Delaware Corporation having of business at 900 S. Gay Street, Suite 300, Knoxville,
Tennessee 37902 (hereinafter referred to as “Lessee”).

WITNESSETH:

     WHEREAS, Landlord and Lessee have executed a Lease and Installation Agreement, dated May 12,
2003 (the “Lease Agreement"), pertaining to the Lease of the Premises and installation
of the Units (as defined in the Lease Agreement) at Landlord‘s locations listed on
Exhibit A to the Lease Agreement; and

     WHEREAS, Landlord and Lessee now wish to add Landlord‘s location in Paulsboro, NJ
to the Lease Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth
herein, the parties hereto agree as follows:

     1. Unless otherwise defined herein, capitalized terms that are used herein shall have the
meanings ascribed thereto in the Lease Agreement.

     2. Exhibit A to the Lease Agreement, shall be and herby is amended by adding the following to
Exhibit A, immediately after the final sentence of Exhibit A:

	 	“4. Paulsboro Travel Center
	 
	 	 	 	I-295, Exit 18 at Berkley Road
	 
	 	 	 	Paulsboro, NJ 08066

The ‘Completion Date’ for Paulsboro, NJ shall be July 31, 2004.”

     3. Exhibit D to the Lease Agreement shall be and hereby is supplemented by the addition to
Exhibit D of the drawings for Paulsboro, NJ prepared by Eaton Electrical, dated May 6, 2004, as
approved by Landlord and Lessee.

 

 

     4. The $25,000 Initial Payment for Paulsboro, NJ is due and payable and will be paid to
Landlord by Lessee within ten (10) days of the date of this Addendum.

     5. Except as expressly amended hereby, the Lease Agreement is hereby ratified and confirmed in
all respects and shall continue in full force and effect.

     IN WITNESS WHEREOF, the parties hereto intending to be legally bound hereby, have duly
executed and delivered this First Addendum to Lease and Installation Agreement on the day and year
first above written.

LANDLORD:

1. TA OPERATING CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Peter P. Greene
	 	 
	 

	 	 	 	 

Peter P. Greene

Senior Vice President of Development and Franchinsing

LESSEE:

IDLEAIRE TECHNOLOGIES CORPORATION

	 	 	 	 	 
	By:

	 	/s/ David Everhart
	 	 
	 

	 	 	 	 

David Everhart

COO

First Addendum  - Page 2exv10w29

 

Exhibit 10.29

 

LOAN AGREEMENT

Dated as of April 27, 2006

Between

2525 N WOODLAWN VSTRM WICHITA KS, LLC,

CI05 CLINTONVILLE WI LLC and

MSI05-3 LLC

collectively as Borrower

And

IXIS REAL ESTATE CAPITAL INC.

as Lender

 

Property Locations:

255 Spring Street, Clintonville, Wisconsin

2525 N Woodlawn Avenue, Wichita, Kansas

914 Wohlert Street, Angola, Indiana

801 East 11th Street, Rock Falls, Illinois

800 Growth Parkway, Angola Indiana.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1.	 	DEFINITIONS; PRINCIPLES OF CONSTRUCTION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1	 	Terms and Definitions	 	 	1	 
	 
	 	1.2	 	Index of Other Definitions	 	 	10	 
	 
	 	1.3	 	Principles of Construction	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	2.	 	GENERAL LOAN TERMS	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	The Loan	 	 	10	 
	 
	 	2.2	 	Interest; Monthly Payments	 	 	10	 
	 
	 	2.3	 	Loan Repayment and Defeasance	 	 	11	 
	 
	 	2.4	 	Release of Property	 	 	14	 
	 
	 	2.5	 	Payments and Computations	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	3.	 	CASH MANAGEMENT AND RESERVES	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Cash Management Arrangements	 	 	16	 
	 
	 	3.2	 	Required Repairs	 	 	16	 
	 
	 	3.3	 	Taxes and Insurance	 	 	17	 
	 
	 	3.4	 	[Intentionally Deleted]	 	 	18	 
	 
	 	3.5	 	Rollover Reserves	 	 	18	 
	 
	 	3.6	 	Operating Expense Subaccount	 	 	19	 
	 
	 	3.7	 	Casualty/Condemnation Subaccount	 	 	19	 
	 
	 	3.8	 	Security Deposits	 	 	20	 
	 
	 	3.9	 	Grant of Security Interest; Application of Funds	 	 	20	 
	 
	 	3.10	 	Property Cash Flow Allocation	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	4.	 	REPRESENTATIONS AND WARRANTIES	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.1	 	Organization; Special Purpose	 	 	21	 
	 
	 	4.2	 	Proceedings; Enforceability	 	 	21	 
	 
	 	4.3	 	No Conflicts	 	 	22	 
	 
	 	4.4	 	Litigation	 	 	22	 
	 
	 	4.5	 	Agreements	 	 	22	 
	 
	 	4.6	 	Title	 	 	22	 
	 
	 	4.7	 	No Bankruptcy Filing	 	 	23	 
	 
	 	4.8	 	Full and Accurate Disclosure	 	 	23	 
	 
	 	4.9	 	No Plan Assets	 	 	23	 
	 
	 	4.10	 	Compliance	 	 	24	 
	 
	 	4.11	 	Contracts	 	 	24	 
	 
	 	4.12	 	Federal Reserve Regulations; Investment Company Act	 	 	24	 
	 
	 	4.13	 	Utilities and Public Access	 	 	24	 
	 
	 	4.14	 	Physical Condition	 	 	25	 
	 
	 	4.15	 	Leases	 	 	25	 
	 
	 	4.16	 	Fraudulent Transfer	 	 	25	 
	 
	 	4.17	 	Ownership of Borrower	 	 	26	 
	-i-

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	4.18	 	Management Agreement	 	 	26	 
	 
	 	4.19	 	Hazardous Substances	 	 	26	 
	 
	 	4.20	 	Principal Place of Business	 	 	27	 
	 
	 	4.21	 	Other Debt	 	 	27	 
	 
	 	4.22	 	Embargoed Person	 	 	27	 
	 
	 	4.23	 	Anti-Money Laundering	 	 	27	 
	 
	 	4.24	 	Ground Lease and Other Bond Documents	 	 	27	 
	 
	 	 	 	 	 	 	 	 
	5.	 	COVENANTS	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.1	 	Existence	 	 	28	 
	 
	 	5.2	 	Taxes	 	 	28	 
	 
	 	5.3	 	Repairs; Maintenance and Compliance; Alterations	 	 	28	 
	 
	 	5.4	 	Performance of Other Agreements	 	 	29	 
	 
	 	5.5	 	Cooperate in Legal Proceedings	 	 	29	 
	 
	 	5.6	 	Further Assurances	 	 	29	 
	 
	 	5.7	 	Environmental Matters	 	 	30	 
	 
	 	5.8	 	Title to the Property; Liens	 	 	32	 
	 
	 	5.9	 	Leases	 	 	32	 
	 
	 	5.10	 	Estoppel Statement	 	 	34	 
	 
	 	5.11	 	Property Management	 	 	34	 
	 
	 	5.12	 	Special Purpose Bankruptcy Remote Entity	 	 	35	 
	 
	 	5.13	 	Intentionally Deleted	 	 	35	 
	 
	 	5.14	 	Change In Business or Operation of Property	 	 	35	 
	 
	 	5.15	 	Certain Prohibited Actions	 	 	35	 
	 
	 	5.16	 	Prohibited Transfers	 	 	36	 
	 
	 	5.17	 	Expenses	 	 	38	 
	 
	 	5.18	 	Indemnity	 	 	38	 
	 
	 	5.19	 	Embargoed Person	 	 	39	 
	 
	 	5.20	 	Anti-Money Laundering	 	 	40	 
	 
	 	5.21	 	ERISA	 	 	41	 
	 
	 	5.22	 	Ground Lease	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	6.	 	NOTICES AND REPORTING	 	 	42	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6.1	 	Borrower Notices and Deliveries	 	 	43	 
	 
	 	6.2	 	Financial Reporting	 	 	43	 
	 
	 	 	 	 	 	 	 	 
	7.	 	INSURANCE; CASUALTY; AND CONDEMNATION	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.1	 	Insurance	 	 	45	 
	 
	 	7.2	 	Casualty	 	 	48	 
	 
	 	7.3	 	Condemnation	 	 	48	 
	 
	 	7.4	 	Application of Proceeds or Award	 	 	49	 
	 
	 	 	 	 	 	 	 	 
	-ii-

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	8.	 	DEFAULTS	 	 	50	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.1	 	Events of Default	 	 	50	 
	 
	 	8.2	 	Remedies	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	9.
	 	SECONDARY MARKET PROVISIONS	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9.1	 	Transfer of Loan	 	 	53	 
	 
	 	9.2	 	Use of Information	 	 	54	 
	 
	 	9.3	 	Borrower Indemnity	 	 	54	 
	 
	 	9.4	 	Restructuring of Loan	 	 	55	 
	 
	 	 	 	 	 	 	 	 
	10.	 	MISCELLANEOUS	 	 	55	 
	 
	 	10.1	 	Exculpation	 	 	55	 
	 
	 	10.2	 	Brokers and Financial Advisors	 	 	57	 
	 
	 	10.3	 	Retention of Servicer	 	 	57	 
	 
	 	10.4	 	Survival	 	 	57	 
	 
	 	10.5	 	Lender’s Discretion	 	 	57	 
	 
	 	10.6	 	Governing Law	 	 	58	 
	 
	 	10.7	 	Modification, Waiver in Writing	 	 	58	 
	 
	 	10.8	 	Trial by Jury	 	 	59	 
	 
	 	10.9	 	Headings/Exhibits	 	 	59	 
	 
	 	10.10	 	Severability	 	 	59	 
	 
	 	10.11	 	Preferences	 	 	59	 
	 
	 	10.12	 	Waiver of Notice	 	 	59	 
	 
	 	10.13	 	Remedies of Borrower	 	 	59	 
	 
	 	10.14	 	Prior Agreements	 	 	60	 
	 
	 	10.15	 	Offsets, Counterclaims and Defenses	 	 	60	 
	 
	 	10.16	 	Publicity	 	 	60	 
	 
	 	10.17	 	No Usury	 	 	60	 
	 
	 	10.18	 	Conflict; Construction of Documents	 	 	61	 
	 
	 	10.19	 	No Third Party Beneficiaries	 	 	61	 
	 
	 	10.20	 	Yield Maintenance Premium	 	 	61	 
	 
	 	10.21	 	Assignment	 	 	61	 
	 
	 	10.22	 	Counterparts	 	 	62	 
	 
	 	 	 	 	 	 	 	 
	-iii-

 

 

LOAN AGREEMENT

     LOAN AGREEMENT dated as of April 27, 2006 (as the same may be modified, supplemented, amended
or otherwise changed, this “Agreement”) between 2525 N WOODLAWN VSTRM WICHITA KS, LLC, a Delaware
limited liability company, CI05 CLINTONVILLE WI LLC, a Delaware limited liability company, and
MSI05-3 LLC, a Delaware limited liability company (jointly and severally, and together with their
permitted successors and assigns, collectively, “Borrower”), and IXIS REAL ESTATE CAPITAL INC., a
New York corporation (together with its successors and assigns, “Lender”).

1. DEFINITIONS; PRINCIPLES OF CONSTRUCTION

     1.1 Terms and Definitions. The following terms have the meanings set forth below:

          1.1.1 Key Terms and Definitions.

          Amortization Schedule: 300 months.

          Borrower Representative: Gladstone Commercial Limited Partnership, a Delaware limited
partnership.

          Converting Borrower shall mean CI05 Clintonville WI LLC, the Delaware limited liability
company that owns the Converting Property.

          Deposit Bank: LaSalle Bank, N.A., or such other bank or depository selected by Lender in its
discretion.

          Guarantor: Gladstone Commercial Corporation, a Maryland corporation.

          Interest Rate: a rate of interest equal to 6.580% per annum.

          Manager: with respect to the T-Mobile Property only, Vantage Point Properties, Inc., a Kansas
corporation, or any successor, assignee or replacement manager appointed by Borrower in accordance
with Section 5.11; and with respect to the other Properties, any manager or managers of such
Properties, and any successor, assignee or replacement of such manager or managers, as may be
appointed in accordance with Section 5.11.

          Monthly Debt Service Payment Amount: $101,351.97.00.

          Principal: Original principal amount of $14,900,000.00.

          Property: individually and collectively, the parcels real property and Improvements thereon
owned by Borrower and encumbered by the Mortgage; together with all rights pertaining to such real
property and Improvements, and all other collateral for the Loan as more particularly described in
the Granting Clauses of the Mortgage and referred to therein as the Mortgaged Property. The
Property is located at 255 Spring Street, Clintonville, Wisconsin (the “Converting Property”); 2525
N Woodlawn Avenue, Wichita, Kansas (the “T-Mobile

 

 

Property”); and 914 Wohlert Street, Angola, Indiana (“Wohlert Property”), 801 East
11th Street, Rock Falls, Illinois (“Rock Falls Property”) and 800 Growth Parkway, Angola
Indiana (“Growth Property”). The Wohlert Property, Rock Falls Property and Growth Property are
sometimes collectively referred to herein as, the “Spinners Property” or “Spinners Properties”).

          Spinners Borrower shall mean MSI05-3 LLC, the Delaware limited liability company that owns the
Spinners Properties.

          Start-up Date: the earlier of (a) the third anniversary date hereof and (b) two (2) years
from the “start-up day” (within the meaning of Section 860G(a)(9) of the Code) of the REMIC Trust.

          Stated Maturity Date: May 5, 2016.

          T-Mobile Borrower shall mean 2525 N Woodlawn VSTRM Wichita KS, LLC, the Delaware limited
liability company that owns the T-Mobile Property.

          1.1.2 Additional Terms and Definitions.

          Affiliate: as to any Person, any other Person that, directly or indirectly, is in Control of,
is Controlled by or is under common Control with such Person or is a director or officer of such
Person or of an Affiliate of such Person, other than holders of publicly traded shares or other
securities of Guarantor who are not officers or directors of Guarantor.

          Allocated Loan Amount: with respect to any Property, the amount set forth on Schedule 5
attached hereto and made a part hereof.

          Approved Capital Expenses: Capital Expenses incurred by Borrower, provided that such Capital
Expenses shall either be (i) included in the approved Capital Budget for the current calendar month
or (ii) approved by Lender.

          Approved Leasing Expenses: actual out-of-pocket expenses incurred by Borrower and payable to
third parties that are not Affiliates of Borrower or Guarantor (or to Affiliates of Borrower or
Guarantor in arms length transactions entered into in the ordinary course of business and upon fair
market terms and conditions) in leasing space at the Property pursuant to the Property Leases and
any other Leases entered into in accordance with the Loan Documents, including brokerage
commissions and tenant improvements, which expenses (i) are (A) specifically approved by Lender in
connection with approving the applicable Lease, (B) incurred in the ordinary course of business and
on market terms and conditions in connection with Leases which do not require Lender’s approval
under the Loan Documents, or (C) otherwise approved by Lender, which approval shall not be
unreasonably withheld or delayed, and (ii) are substantiated by executed Lease documents and
brokerage agreements.

          Approved Operating Expenses: During a Cash Management Period, operating expenses incurred by
Borrower which (i) are included in the approved Operating Budget for the current calendar month,
(ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other
utility service to the Property or (iii) have been approved by Lender.

2

 

          Bond Documents: collectively, the Indenture, the Ground Lease, the Guaranty Agreement dated
as of October 1, 2000 as modified pursuant to that Assumption of Guaranty dated as of May 18, 2005
for the benefit of the holders, the Direct Pay Agreement, and all other documents and instruments
executed and delivered in connection with the Industrial Revenue Bonds.

          Business Day: any day other than a Saturday or a Sunday or any day on which commercial banks
in New York, New York are authorized or required to close.

          Capital Expenses: expenses that are capital in nature or required under GAAP to be
capitalized.

          Cash Management Period: shall commence upon Lender giving notice to the Borrower and the
Clearing Bank of the occurrence of any of the following: (i) an Event of Default, or (ii) the
failure by Borrower, after the end of a calendar quarter, to maintain a Debt Service Coverage Ratio
of at least 1.05:1; and shall end upon Lender giving notice promptly to the Borrower and the
Clearing Bank that the Cash Management Period has ended, which notice Lender shall only be required
to give if (1) the Loan and all other obligations under the Loan Documents have been repaid in full
or (2) there has been a Full Defeasance of the Loan or (3) for twelve (12) months since the
commencement of the existing Cash Management Period (A) no Default or Event of Default has
occurred, (B) no event that could trigger a separate Cash Management Period has occurred and (C)
the Debt Service Coverage Ratio is at least equal to 1.05:1.

          Code: the Internal Revenue Code of 1986, as amended and as it may be further amended from
time to time, any successor statutes thereto, and applicable U.S. Department of Treasury
regulations issued pursuant thereto in temporary or final form.

          Control: with respect to any Person, either (i) ownership, directly or indirectly, of
forty-nine percent (49%) or more of all equity interests in such Person or (ii) the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of such Person, through the ownership of voting securities, by contract or otherwise.

          Debt: the unpaid Principal, all interest accrued and unpaid thereon, any Yield Maintenance
Premium and all other sums due to Lender in respect of the Loan under any Loan Document.

          Debt Service: with respect to any particular period, the scheduled Principal and interest
payments due under the Note in such period.

          Debt Service Coverage Ratio: as of any date, the ratio calculated by Lender of (i) the Net
Operating Income for the twelve (12) month period ending with the most recently completed calendar
month to (ii) the Debt Service with respect to such period.

          Default: the occurrence of any event under any Loan Document which, with the giving of notice
or passage of time, or both, would be an Event of Default.

3

 

          Default Rate: a rate per annum equal to the lesser of (i) the maximum rate
permitted by applicable law, or (ii) five percent (5%) above the Interest Rate, compounded
monthly.

          Defeasance Percentage: the percentage derived by dividing, (i) in the case of an initial
Partial Defeasance, the original principal amount of the Defeased Note by the original principal
amount of the Note or (ii) in the case of a subsequent Defeasance, the amount of the subsequent
Defeased Note by the original principal amount of its corresponding Undefeased Note.

          ERISA: the Employment Retirement Income Security Act of 1974, as amended from time to time,
and the rules and regulations promulgated thereunder.

          ERISA Affiliate: all members of a controlled group of corporations and all trades and
business (whether or not incorporated) under common control and all other entities which, together
with Borrower, are treated as a single employer under any or all of Section 414(b), (c), (m) or (o)
of the Code.

          Escrows: amounts paid by Borrower into Subaccounts established following the occurrence and
during the continuance of an Event of Default, for the purpose of paying Taxes, the premiums for
Policies, ground rents, franchise and license fees and any other regularly occurring costs for
which a Subaccount is established hereunder.

          Excess Cash Flow: for any period, Net Operating Income for such period, less actual payments
of Debt Service for such period.

          GAAP: generally accepted accounting principles in the United States of America as of the date
of the applicable financial report.

          Governmental Authority: any court, board, agency, commission, office or authority of any
nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or
otherwise) now or hereafter in existence.

          Ground Lease: that certain Lease Agreement dated as of October 1, 2000 by and between the
City of Wichita, Kansas, as landlord, and Net Fund I, Ltd. as successor in interest to VS Property,
L.L.C., as tenant; and assigned by Assignment of Lease dated November 9, 2001 from VS Property,
L.L.C. to Net Fund I, Ltd., and further assigned by Assignment of Lease dated May 18, 2005 from Net
Fund I, Ltd. to 2525 N Woodlawn VStrm Wichita KS, LLC; as amended by that certain First Amendment
to Lease Agreement dated as of May 18, 2005; together with any extensions, renewals, modifications
or amendments thereof and all additional remainders, reversions and other rights and estates
appurtenant thereto.

          Ground Lease Option: the option of the T-Mobile Borrower to purchase the T-Mobile Property as
set forth in Section 17.1 of the Ground Lease.

          Indenture: that certain Indenture dated as of October 1, 2000 by and between the City of
Wichita, Kansas, a municipal corporation of the State of Kansas, as issuer of the Industrial
Revenue Bonds, and Commerce Bank, N.A., Wichita Kansas, in its capacity as trustee, bond registrar
and paying agent (the “Bond Trustee”) with respect to the Industrial Revenue
Bonds.

4

 

          Industrial Revenue Bonds: collectively, the (i) City of Wichita, Kansas, Taxable Industrial
Revenue Bonds, Series IV-A 2000 in the original aggregate principal amount of $7,500,000 (the
“Series A, 2000 Bonds”); and the (ii) City of Wichita, Kansas, Subordinated Taxable Industrial
Revenue Bonds, Series IV-B, 2000 in the initial principal amount of $2,644,764.18 (the “Series B,
2000 Bonds”), in the aggregate not to exceed $10,144,764.18, issued by the City of Wichita, Kansas
pursuant to an ordinance dated as of October 17, 2000.

          Interest Period: (i) the period from the date hereof through the next day of a calendar month
that is the fifth day of such calendar month, and (ii) each period thereafter from the sixth day of
each calendar month through the fifth day of the next calendar month; except that the Interest
Period, if any, that would otherwise commence before and end after the Maturity Date shall end on
the Maturity Date. Notwithstanding the foregoing, in the event Lender shall have elected to change
the date on which scheduled payments under the Loan are due, as described in the definition of
“Payment Date,” from and after the effective date of such election, each Interest Period shall
commence on the day of each month in which occurs such changed Payment Date and end on the day
immediately preceding the following Payment Date, as so changed.

          Leases: all leases and other agreements or arrangements heretofore or hereafter entered into
affecting the use, enjoyment or occupancy of, or the conduct of any activity upon or in, the
Property or the Improvements, including any guarantees, extensions, renewals, modifications or
amendments thereof and all additional remainders, reversions and other rights and estates
appurtenant thereunder.

          Legal Requirements: statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions of Governmental Authorities affecting Borrower, any Loan Document or all or
part of the Property or the construction, ownership, use, alteration or operation thereof, whether
now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations
relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any
instrument, either of record or known to Borrower, at any time in force affecting all or part of
the Property.

          Lien: any mortgage, deed of trust, lien (statutory or otherwise), pledge, hypothecation,
easement, restrictive covenant, preference, assignment, security interest or any other encumbrance,
charge or transfer of, or any agreement to enter into or create any of the foregoing, on or
affecting all or part of the Property or any interest therein, or in Borrower or Borrower
Representative, including any conditional sale or other title retention agreement, any financing
lease having substantially the same economic effect as any of the foregoing, the filing of any
financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances.

          Loan to Value Ratio: as to any Property, the ratio of the Allocated Loan Amount for the
Property to the fair market value of the Property as reasonably determined by Lender based on an
updated or current M.A.I. appraisal of the Property in its then current condition, obtained at
Borrower’s expense and satisfactory to Lender.

5

 

          Loan Documents: this Agreement and all other documents, agreements and instruments now or
hereafter evidencing, securing or delivered to Lender in connection with the Loan, including the
following, each of which is dated as of the date hereof: (i) Promissory Note made by Borrower to
Lender in the principal amount equal to the Loan (the “Note”), (ii) those certain Mortgages,
Assignment of Leases and Rents and Security Agreement made by Borrower (or the Deed of Trust,
Assignment of Leases and Rents and Security Agreement made by Borrower to a trustee, as the case
may be) in favor of Lender which covers the Property (collectively, the “Mortgage”), (iii) those
certain Assignment of Leases and Rents from Borrower to Lender, (iv) the Assignment of Agreements,
Licenses, Permits and Contracts from Borrower to Lender, (v) the Clearing Account Agreement (the
“Clearing Account Agreement”) among Borrower, Lender, Manager and Branch Banking and Trust Company
of Virginia, (vi) the Deposit Account Agreement (the “Deposit Account Agreement”) among Borrower,
Lender, Manager and the Deposit Bank, (vii) the Guaranty of Recourse Obligations made by Guarantor,
and (viii) the Pledge and Security Agreement (the “Pledge”) made by the T-Mobile Borrower in favor
of Lender which pledges to Lender all of the T-Mobile Borrower’s right, title and interest in and
to the Industrial Revenue Bonds, which are held by the T-Mobile Borrower and all right, title and
interest of the T-Mobile Borrower as beneficiary under the Indenture and other Bond Documents (the
“Pledged Collateral”); as each of the foregoing may be (and each of the foregoing defined terms
shall refer to such documents as they may be) amended, restated, replaced, supplemented or
otherwise modified from time to time.

          Management Agreement: with respect to the T-Mobile Property only, the T-Mobile Management
Agreement and with respect to the other Properties, any management agreement entered into between
Borrower and a property manager, pursuant to which such manager is to manage any Property, as the
same may be entered into, amended, restated, replaced, supplemented or otherwise modified from time
to time in accordance with Section 5.11.

          Material Alteration: any alteration affecting structural elements of the Property the cost of
which exceeds $250,000; provided, however, that in no event shall (i) any Required Repairs, (ii)
any tenant improvement work performed pursuant to any Lease existing on the date hereof or entered
into hereafter in accordance with the provisions of this Agreement, or (iii) alterations performed
as part of a Restoration, constitute a Material Alteration.

          Material Lease: all Leases which individually or in the aggregate with respect to the same
tenant and its Affiliates (i) constitute five percent (5%) or more of the Property’s gross leasable
area, (ii) have a gross annual rent of five percent (5%) or more of the total annual Rents, or
(iii) demise at least one full floor of the Improvements.

          Maturity Date: the date on which the final payment of principal of the Note (or the Defeased
Note, if applicable) becomes due and payable as therein provided, whether at the Stated Maturity
Date, by declaration of acceleration, or otherwise.

          Minor Lease: any Lease that is not a Material Lease.

6

 

          Net Operating Income: for any period, the actual net operating income of the Property after
deducting therefrom deposits to (but not withdrawals from) any reserves required
under this Agreement.

          Officer’s Certificate: a certificate delivered to Lender by Borrower which is signed by an
officer of the general partner of the Borrower Representative.

          Open Prepayment Date: the Payment Date which is closest to the 90th day prior to the Stated
Maturity Date for the Loan.

          Payment Date: the sixth (6th) day of each calendar month or, if such day is not a Business
Day, the first (1st) Business Day thereafter; provided, however, that Lender may elect once during
the Term, in its sole discretion, to change the date on which scheduled payments are due under the
Loan upon written notice thereof to Borrower setting forth such changed date (provided that such
changed date will be not be earlier than the sixth day of each month because rents under the
Property Leases are not received by Borrower until the fifth day of each month) in which event,
upon the effective date of such notice, the Payment Date shall be the date set forth therein.

          Permitted Encumbrances: (i) the Liens created by the Loan Documents and the Bond Documents,
(ii) all Liens and other matters disclosed in the title insurance policy insuring the Lien of the
Mortgage, (iii) Liens, if any, for Taxes or other charges not yet due and payable and not
delinquent, (iii) any workers’, mechanics’ or other similar Liens on the Property provided that any
such Lien is bonded or discharged within sixty (60) days after Borrower first receives notice of
such Lien, (iv) the Property Leases and (v) such other title and survey exceptions as Lender
approves in writing in Lender’s discretion.

          Permitted Indebtedness: the Debt and unsecured trade payables incurred in the ordinary course
of business relating to the ownership and operation of the Property which do not exceed, at any
time, a maximum amount of two percent (2%) of the original amount of the Principal and are paid
within sixty (60) days of the date incurred; and the obligations of
Borrower pursuant to the Indenture and the other Bond Documents.

          Permitted Transfers: (i) the Property Leases and any Lease entered into in accordance with
the Loan Documents, (ii) a Special Transfer in accordance with the requirements set forth in
Section 5.16, (iii) a Permitted Encumbrance, (iv) provided that no Default or Event of Default
shall then exist, a Transfer of an interest in Borrower other than the interests in Borrower held
by Borrower Representative, or a Transfer of an interest in Borrower Representative to any Person,
provided that (A) such Transfer shall not cause the transferee (together with its Affiliates) to
acquire Control of Borrower or Borrower Representative or to increase its direct or indirect
interest in Borrower or in Borrower Representative to an amount which equals or exceeds forty-nine
percent (49%), except as provided in Section 5.16(c), (B) [intentionally deleted], (C) Borrower
shall give Lender notice of such Transfer together with copies of all instruments effecting such
Transfer not less than ten (10) days prior to the date of such Transfer, and (D) the legal and
financial structure of Borrower and its members and the single purpose nature and bankruptcy
remoteness of Borrower and its members after such Transfer, shall satisfy Lender’s then current
applicable underwriting criteria and requirements, (v) a Transfer which would otherwise violate the
provisions of clause (iv) hereof in respect to a change in Control only but for Lender’s approval
following the satisfaction of the Transfer
approval criteria set forth in Section 5.16 clauses (i), (ii), (iii), (ix), (x), (xi) and
(xii) (a “Controlling Interest Transfer”).

7

 

          Person: any individual, corporation, partnership, limited liability company, joint venture,
estate, trust, unincorporated association, any other person or entity, and any federal, state,
county or municipal government or any bureau, department or agency thereof and any fiduciary acting
in such capacity on behalf of any of the foregoing.

          Plan: (i) an employee benefit or other plan established or maintained by Borrower or any
ERISA Affiliate or to which Borrower or any ERISA Affiliate makes or is obligated to make
contributions and (ii) which is covered by Title IV of ERISA or Section 302 of ERISA or Section 412
of the Code.

          Property Leases: that certain Lease Agreement between Metal Spinners, Inc. and the Spinners
Borrower, dated September 1, 2005; (ii) that certain Lease Agreement between Converting, Inc. and
the Converting Borrower, dated October 31, 2005; and (iii) the T-Mobile Lease; together with any
extensions, renewals, modifications or amendments thereof.

          Release Amount: with respect to any Property, the greater of (a) 125% of the Allocated Loan
Amount for such Property, and (b) an amount which after giving effect to the release of such
Property (i.e., after deducting Net Operating Income and Debt Service attributable (on a pro-rata
basis) to the Property proposed to be released, and treating the Debt as if it were being reduced
by such amount rather than partially defeased), results in a Loan to Value Ratio of 60% and less,
and a Debt Service Coverage Ratio of 1.35:1.00 or greater.

          Rating Agency: each of Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”), and Fitch, Inc. or any other
nationally-recognized statistical rating organization to the extent any of the foregoing have been
engaged by Lender or its designee in connection with or in anticipation of any Secondary Market
Transaction.

          Rating Comfort Letter: a letter issued by each of the applicable Rating Agencies which
confirms that the taking of the action referenced to therein will not result in any qualification,
withdrawal or downgrading of any existing ratings of Securities created in a Secondary Market
Transaction in effect immediately prior to a defeasance.

          REMIC Trust: a “real estate mortgage investment conduit” within the meaning of Section 860D
of the Code that holds the Note.

          Rents: all rents, rent equivalents, moneys payable as damages (including payments by reason
of the rejection of a Lease in a Bankruptcy Proceeding) or in lieu of rent or rent equivalents,
royalties (including all oil and gas or other mineral royalties and bonuses), income, fees,
receivables, receipts, revenues, deposits (including security, utility and other deposits),
accounts, cash, issues, profits, charges for services rendered, and other payment and consideration
of whatever form or nature received by or paid to or for the account of or benefit of Borrower,
Manager or any of their agents or employees from any and all sources arising from or attributable
to the Property and the Improvements, including all receivables, customer obligations, installment
payment obligations and other obligations now existing or hereafter

8

 

arising or created out of the sale, lease, sublease, license, concession or other grant of the
right of the use and occupancy of the Property or rendering of services by Borrower, Manager or any
of their agents or employees and proceeds, if any, from business interruption or other loss of
income insurance.

          Servicer: a servicer selected by Lender to service the Loan.

          State: with respect to each Property, the state in which the Property is located.

          T-Mobile Lease: that certain Lease Agreement dated as of March 13, 2000 between Borrower, as
successor in interest to Net Fund I, LLC, successor in interest to VS Property, LLC, as landlord,
and T-Mobile USA, Inc., formerly known as Voicestream Wireless Corporation, as tenant; as amended
by Amendment to Lease Agreement dated October 18, 2000, Second Amendment dated August 21, 2000,
Third Amendment dated October 2, 2000, Assignment of Lease dated November 9, 2001, Fourth Amendment
dated June 28, 2002 and Fifth Amendment dated March 17, 2003; together with any guarantees,
extensions, renewals, modifications or amendments thereof and all additional remainders, reversions
and other rights and estates appurtenant thereto.

          T-Mobile Management Agreement: that certain Property Management Agreement dated November 9,
2001 between the T-Mobile Borrower and the Manager of the T-Mobile Property.

          Taxes: all real estate and personal property taxes, assessments, water rates or sewer rents,
maintenance charges, impositions, vault charges and license fees, now or hereafter levied or
assessed or imposed against all or part of the Property.

          Term: the entire term of this Agreement, which shall expire upon repayment in full of the
Debt and full performance of each and every obligation to be performed by Borrower pursuant to the
Loan Documents.

          Toxic Mold: any toxic mold or fungus at the Property which is of a type (i) that might pose a
significant risk to human health or the environment or (ii) that would negatively impact the value
of the Property.

          Transfer: any sale, conveyance, transfer, lease or assignment, or the entry into any
agreement to sell, convey, transfer, lease or assign, whether by law or otherwise, of, on, in or
affecting (i) all or part of the Property (including any legal or beneficial direct or indirect
interest therein), (ii) any direct or indirect interest in Borrower (including any profit
interest), or (iii) any direct or indirect interest in Borrower Representative. Notwithstanding
the foregoing or anything inconsistent or to the contrary contained in this Agreement or in any
other Loan Document, in no event shall the trading or issuance of shares or other securities of
Guarantor in public markets constitute a Transfer except as set forth in Section 5.16(c).

          UCC: the Uniform Commercial Code as in effect in the State or the state in which any of the
Cash Management Accounts are located, as the case may be.

9

 

          U.S. Obligations: direct non-callable obligations backed by the full faith and
credit of the United States of America.

          Welfare Plan: an employee welfare benefit plan, as defined in Section 3(1) of ERISA.

          Yield Maintenance Premium: the amount, if any (but in no event less than zero), payable in
accordance with Section 10.20, which amount, when added to the unpaid Principal of the Note payable
on the Stated Maturity Date, would be sufficient to purchase U.S. Obligations providing payments
that are sufficient in amount to make the required Scheduled Defeasance Payments, it being
understood and agreed that, in connection with a Defeasance, Borrower shall not be required to pay
the amount hereinbefore described (to wit, the Yield Maintenance Premium) in addition to payment of
the Defeasance Deposit.

     1.2 Index of Other Definitions. An index of other terms which are defined in this
Agreement or in other Loan Documents is set forth on Schedule 1.

     1.3 Principles of Construction. Unless otherwise specified, (i) all references to
sections and schedules are to those in this Agreement, (ii) the words “hereof,” “herein” and
“hereunder” and words of similar import refer to this Agreement as a whole and not to any
particular provision, (iii) all definitions are equally applicable to the singular and plural forms
of the terms defined, (iv) the word “including” means “including but not limited to,” and (v)
accounting terms not specifically defined herein shall be construed in accordance with GAAP.

2. GENERAL LOAN TERMS

     2.1 The Loan. Lender is making a loan (the “Loan”) to Borrower on the date hereof, in
the original principal amount (the “Principal”) of $14,900,000.00, which shall mature on the Stated
Maturity Date. Borrower acknowledges receipt of the Loan, the proceeds of which are to be fully
advanced on the date hereof and shall be used to (i) return to Borrower a portion of the costs
incurred to acquire the Property, (ii) fund certain of the Subaccounts, and (iii) pay transaction
costs. Any excess proceeds may be used for any lawful purpose. No amount repaid in respect of the
Loan may be reborrowed.

     2.2 Interest; Monthly Payments.

          2.2.1 Generally. From and after the date hereof, interest on the unpaid Principal
shall accrue at the Interest Rate and be payable as hereinafter provided. On the date hereof,
Borrower shall pay interest on the unpaid Principal from the date hereof through and including May
5, 2006. On June 6, 2006 (which shall be the first Payment Date hereunder) and each Payment Date
thereafter through and including the Payment Date immediately preceding the Stated Maturity Date,
Borrower shall pay an amount equal to the Monthly Debt Service Payment Amount; which payment is
based on the Interest Rate and the Amortization Schedule. The Monthly Debt Service Payment Amount
due on any Payment Date shall first be applied to the payment of interest accrued from the
scheduled Payment Date preceding the Payment Date on which such Monthly Debt Service Payment Amount
is paid through the day of the month immediately preceding the Payment Date on which such Monthly
Debt Service Payment Amount is paid, notwithstanding that the actual Payment Date may not have been
the scheduled Payment
Date because the scheduled Payment Date is not a Business Day. The remainder of such Monthly
Debt Service Payment Amount shall be applied to the reduction of the unpaid Principal.

10

 

          2.2.2 Default Rate. After the occurrence and during the continuance of an Event of
Default, the entire unpaid Debt shall bear interest at the Default Rate, and shall be payable upon
demand from time to time, to the extent permitted by applicable law.

          2.2.3 Taxes. Any and all payments by Borrower hereunder and under the other Loan
Documents shall be made free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding taxes imposed on Lender’s income, and franchise taxes imposed on Lender by law
or regulation of any Governmental Authority (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to in this Section
2.2.3 as “Applicable Taxes”). If Borrower shall be required by law to deduct any Applicable Taxes
from or in respect of any sum payable hereunder to Lender, the following shall apply (to the
fullest extent permitted by applicable law): (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.2.3), Lender receives an amount equal to the sum it
would have received had no such deductions been made, (ii) Borrower shall make such deductions and
(iii) Borrower shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law. Payments pursuant to this Section 2.2.3 shall be made
within ten (10) Business Days after the date Lender makes written demand therefor.

     2.3 Loan Repayment and Defeasance.

          2.3.1 Repayment. Borrower shall repay the entire outstanding principal balance of the
Note in full on the Maturity Date, together with interest thereon to (but excluding) the date of
repayment and any other amounts due and owing under the Loan Documents. Borrower shall have no
right to prepay or defease all or any portion of the Principal, except in accordance with Sections
2.3.2, 2.3.3, 2.3.4, and 5.16(c) below. Except during the continuance of an Event of Default, all
proceeds of any repayment, including permitted prepayments, of the Loan shall be applied by Lender
as follows in the following order of priority: First, accrued and unpaid interest at the Interest
Rate; Second, to Principal; and Third, to any other amounts then due and owing under the Loan
Documents, including the Yield Maintenance Premium (if such repayment or prepayment occurs prior to
the Stated Maturity Date). Notwithstanding the foregoing, the Yield Maintenance Premium shall not
be due in connection with a prepayment of the Loan on or after the Open Prepayment Date. During
the continuance of an Event of Default, all proceeds of repayment, including any payment or
recovery on the Property (whether through foreclosure, deed-in-lieu of foreclosure, or otherwise)
shall, unless otherwise provided in the Loan Documents, be applied in such order and in such manner
as Lender shall elect in Lender’s discretion.

          2.3.2 Mandatory Prepayments. The Loan is subject to mandatory prepayment in certain
instances of Insured Casualty or Condemnation (each a “Casualty/Condemnation Prepayment”), in the
manner and to the extent set forth in Section 7.4.2. Each Casualty/Condemnation Prepayment, after
deducting Lender’s reasonable out-of-pocket third

11

 

party costs and expenses (including reasonable attorneys’ fees and expenses) in connection
with the settlement or collection of the Proceeds or Award, shall be made on a Payment Date and
shall be applied in the same manner as permitted repayments under Section 2.3.1. Provided that no
Event of Default is continuing, any such mandatory prepayment under this Section 2.3.2 shall be
without payment of the Yield Maintenance Premium.

          2.3.3 Voluntary Defeasance of the Note.

          (a) Subject to the terms and conditions set forth in this Section 2.3.3, Borrower may defease
the entire amount of the Principal and obtain the release of the entirety of the Property (a “Full
Defeasance”) or defease a portion of the Principal and obtain a release of the Converting Property
and/or the Spinners Properties (a “Partial Defeasance”) (any such Full Defeasance or Partial
Defeasance, a “Defeasance”); provided, that no Defeasance may occur (i) prior to the Start-up Date,
(ii) if an Event of Default shall have occurred (unless such Event of Default will be cured by the
Defeasance) and (iii) on any date other than a Payment Date. Each Defeasance shall be subject, in
each case, to the satisfaction of all of the following conditions precedent:

               (1) Borrower will give Lender not less than thirty (30) days prior written notice specifying a
Payment Date (the “Defeasance Date”) on which a Defeasance Deposit (hereinafter defined) is to be
made.

               (2) Payment to Lender of all accrued and unpaid interest on the unpaid Principal of the Note
to and including the Defeasance Date and the scheduled amortization payment due on such Defeasance
Date.

               (3) Payment to Lender of all other sums, not including scheduled interest or Principal
payments, then due and payable under the Note and the other Loan Documents.

               (4) Payment to Lender of an amount equal to the sum of (x) an amount sufficient to purchase
U.S. Obligations which provide payments that will meet the Scheduled Defeasance Payments, (y)
reasonable third party out-of-pocket costs and expenses incurred or to be incurred in the purchase
of the U.S. Obligations and (z) any revenue, documentary stamp or intangible taxes or any other tax
or charge due in connection with the Defeasance (the “Defeasance Deposit”).

               (5) Payment to Lender of all reasonable third party out-of-pocket costs and expenses incurred
by Lender in connection with such Defeasance, including reasonable attorneys’ fees.

               (6) In the case of a Partial Defeasance, the execution and delivery by Borrower of all
necessary documents to amend and restate the Note and issue two substitute notes, one having a
principal balance equal to the defeased portion of the original Note (the “Defeased Note”) and the
other having a principal balance equal to the undefeased portion of the original Note (the
“Undefeased Note”). The Defeased Note and Undefeased Note shall have terms identical to the terms
of the Note, except for the principal balance and a pro rata allocation of the Monthly Debt Service
Payment Amount. (After a Partial Defeasance, all references
hereunder and in the other Loan Documents to the term “Note” shall mean and be deemed to refer
to the Undefeased Note, unless expressly provided to the contrary.) A Defeased Note cannot be the
subject of any further Defeasance.

12

 

               (7) Delivery to Lender of: (A) a security agreement, in form and substance satisfactory to
Lender, creating and granting to Lender a first priority lien on the Defeasance Deposit and the
U.S. Obligations (hereinafter defined) purchased on behalf of Borrower with the Defeasance Deposit
in accordance with this provision of this paragraph (the “Security Agreement”); (B) an Officer’s
Certificate of Borrower certifying that the requirements set forth in Section 2.3.3(a) have been
satisfied; (C) an opinion of counsel for Borrower in form and substance satisfactory to Lender
stating, among other things, that Lender has a perfected first priority security interest in the
Defeasance Deposit and the U.S. Obligations purchased by Lender on behalf of Borrower, that the
Security Agreement is the legal, valid and binding obligation of Borrower enforceable against
Borrower in accordance with its terms (except as such enforceability may be limited by applicable
bankruptcy, insolvency and similar laws affecting rights of creditors generally, and general
principals of equity) and that the Defeasance will not adversely affect the status of any REMIC
Trust formed in connection with a Secondary Market Transaction; (D) a certificate of an accounting
firm acceptable to Lender which certifies that the U.S. Obligations are sufficient to make the
Scheduled Defeasance Payments; (E) a Rating Comfort Letter from each applicable Rating Agency with
respect to such Defeasance; and (F) such other certificates, documents or instruments as Lender may
reasonably request.

In connection with the conditions set forth in this Section 2.3.3(a), Borrower hereby appoints
Lender as its agent and attorney-in-fact for the purpose of using the Defeasance Deposit to
purchase U.S. Obligations which provide payments (A) on or prior to, but as close as possible to,
all successive Payment Dates after the date of calculation through the Stated Maturity Date and (B)
in amounts sufficient to pay, (x) in the case of a Full Defeasance, the Monthly Debt Service
Payment Amount required under the Note (or Undefeased Note, as the case may be) together with the
unpaid Principal of the Note (or Undefeased Note, as the case may be) payable on the Stated
Maturity Date and (y) in the case of a Partial Defeasance, the Monthly Debt Service Payment Amount
multiplied by the Defeasance Percentage together with the unpaid Principal of the Defeased Note
payable on the Stated Maturity Date (such payments, the “Scheduled Defeasance Payments”).
Borrower, pursuant to the Security Agreement or other appropriate document, shall authorize and
direct that the payments received from the U.S. Obligations may be made directly to Lender and
applied to satisfy the obligations of Borrower under the Note or the Defeased Note, as applicable.
Any amounts received in respect of the U.S. Obligations in excess of the amounts necessary to make
monthly payments hereunder shall be retained by Lender until payment in full of the Debt and then
promptly paid and set over to Borrower. Semi-annual payments in respect of the U.S. Obligations
shall be applied to the payments under the Note or the Defeased Note, as applicable, as the same
become due thereunder.

          (b) In connection with a Partial Defeasance or a Full Defeasance, Borrower shall establish or
designate a successor entity, which successor entity shall be acceptable to Lender (the “Successor
Borrower”) and Borrower shall transfer and assign all obligations, rights and duties under and to
the Note or the Defeased Note, as applicable, together with the pledged U.S. Obligations to the
Successor Borrower. The obligation of Lender to establish or designate a Successor Borrower shall
be retained by IXIS Real Estate Capital Inc. (but may be assigned to an

13

 

Affiliate) notwithstanding the sale, assignment or transfer of this Agreement unless such
obligation is specifically assumed by the transferee. The Successor Borrower shall assume all
obligations under the Loan Documents and the Security Agreement in the case of a Full Defeasance,
and as a co-obligor with Borrower in the case of a Partial Defeasance. Borrower shall be relieved
of its obligations under the Loan Documents and the Security Agreement only in connection with a
Full Defeasance. Borrower shall pay a $1,000 fee to any such Successor Borrower as consideration
for assuming such obligations. Notwithstanding anything herein to the contrary, no other
assumption fee shall be payable upon a transfer of the Note or the Defeased Note, as applicable, in
accordance with this Section 2.3.3, but Borrower shall pay all reasonable third party out-of-pocket
costs and expenses incurred by Lender, including Lender’s reasonable attorneys’ fees and expenses
and ongoing fees and expenses incurred in connection with this Section 2.3.3.

          2.3.4 Permitted Prepayment. On the Open Prepayment Date or at any time thereafter
prior to the Stated Maturity Date, Borrower shall have the right to pay the entire Debt upon ten
(10) Business Days notice to Lender, without payment of the Yield Maintenance Premium and without
effecting a Defeasance. If any such payment of the Debt pursuant to the preceding sentence is made
on any date other than the Open Prepayment Date or any Payment Date thereafter prior to the Stated
Maturity Date, such payment shall be accompanied by a payment in an amount equal to interest on the
unpaid Principal through the end of the Interest Period during which such payment is made.

     2.4 Release of Property. Except as set forth in this Section 2.4, no repayment,
prepayment or Defeasance shall cause, give rise to a right to require, or otherwise result in, the
release of the Lien of the Mortgage.

          2.4.1 Release on Defeasance. If Borrower has elected a Full Defeasance, and the
requirements of Section 2.3.3 have been satisfied, the Property shall be released from the Lien of
the Mortgage, and the U.S. Obligations pledged pursuant to the Security Agreement shall be the sole
source of collateral securing the Debt. In connection with such release, Borrower shall submit to
Lender, not less than ten (10) Business Days prior to the Defeasance Date, a form of release for
execution by Lender appropriate in the State and reasonably satisfactory to Lender, and all other
documentation Lender reasonably requires to be delivered by Borrower, together with an Officer’s
Certificate certifying that such documentation (i) is in material compliance with all Legal
Requirements and (ii) will effect such release in accordance with the terms of this Agreement.

          2.4.2 Release on Payment in Full. Lender shall, upon the written request and at the
expense of Borrower, upon payment in full of the Debt in accordance herewith, release or, if
requested by Borrower, assign to Borrower’s designee (without any representation or warranty by and
without any recourse against Lender whatsoever) the Lien of the Loan Documents if not theretofore
released.

          2.4.3 Sale and Release of Properties.

          (a) Borrower may obtain the release of all or any of the Converting Property and the Spinners
Properties from the Lien of the applicable Mortgage (and related Loan
Documents) upon a bona fide sale of any such Property provided each of the following
conditions are satisfied:

14

 

               (i) the sale of such Property is pursuant to an arms’ length agreement with a third party (A)
which is not an Affiliate of any Borrower or Guarantor (other than holders of publicly traded
shares or other securities of Guarantor) and (B) in which no direct or indirect member, partner or
shareholder of any Borrower or Guarantor (other than holders of publicly traded shares or other
securities of Guarantor) has any beneficial interest;

               (ii) Borrower shall pay to Lender (A) all accrued and unpaid interest on the Principal being
defeased pursuant to clause (B) of this subsection (ii) (including, if such payment is not made on
a Payment Date, interest through the end of the current Interest Period), and (B) an amount equal
to the Release Amount, which shall be applied to defease the outstanding Principal.

               (iii) both immediately before such sale and immediately thereafter, no Event of Default shall
be continuing;

               (iv) after giving effect to such release and the defeasance as if the Principal were being
prepaid therefrom, the Debt Service Coverage Ratio shall be not less than the greater of (A) Debt
Service Coverage Ratio as of the Closing Date and (B) the Debt Service Coverage Ratio immediately
prior to such release;

               (v) the representations and warranties made in this Agreement and the other Loan Documents
shall be true and correct in all material respects on and as of such sale (and after giving effect
to such sale);

               (vi) Borrower shall have given Lender not less than forty-five (45) days prior written notice
of such sale accompanied by a copy of the applicable contract of sale and, not less than ten (10)
days prior to closing thereof (or such shorter period as Lender may agree to in advance in
writing), drafts of any applicable release documents (which shall be subject to Lender’s approval,
which shall not be unreasonably withheld);

               (vii) Lender shall have approved the final closing settlement statement for such sale, a draft
of which settlement statement shall be delivered to Lender at least two (2) Business Days prior to
the closing of such sale (or such shorter period as Lender may agree to in advance in writing);

               (viii) Borrower shall have paid to Lender all reasonable third party out-of-pocket costs and
expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection
with the release of such Property from the Lien of the Loan Documents;

               (ix) Borrower and Guarantor shall have executed and delivered such documents as Lender may
reasonably request to confirm the continued validity of the Loan Documents and the Liens thereof on
the Property not so released pursuant to this Section 2.4.3;

15

 

               (x) The tenant of the T-Mobile Property is not at the time of the sale and release of any
Property pursuant to this Section 2.4.3 the subject of a proceeding under any state or federal
bankruptcy or insolvency law or the liquidation of all or a major portion of its property; and

               (xi) There exists at the time of the sale and release of any Property pursuant to this Section
2.4.3 no default or event of default under the T-Mobile Lease.

     2.5 Payments and Computations.

          2.5.1 Making of Payments. Each payment by Borrower shall be made in funds settled
through the New York Clearing House Interbank Payments System or other funds immediately available
to Lender by 11:00 a.m., New York City time, on the date such payment is due, to Lender by deposit
to such account as Lender may designate by written notice to Borrower. Whenever any such payment
shall be stated to be due on a day that is not a Business Day, such payment shall be made on the
first Business Day thereafter. All such payments shall be made irrespective of, and without any
deduction, set-off or counterclaim whatsoever and are payable without relief from valuation and
appraisement laws and with all reasonable third party out-of-pocket costs and charges incurred in
the collection or enforcement thereof, including reasonable attorneys’ fees and court costs.

          2.5.2 Computations. Interest payable under the Loan Documents shall be computed on
the basis of the actual number of days elapsed over a 360-day year.

          2.5.3 Late Payment Charge. If any Principal, interest or other sum due under any Loan
Document is not paid by Borrower on the date on which it is due, subject to any applicable grace or
cure period, if any, Borrower shall pay to Lender upon demand an amount equal to the lesser of five
percent (5%) of such unpaid sum or the maximum amount permitted by applicable law (the “Late
Payment Charge”), in order to defray the expense incurred by Lender in handling and processing such
delinquent payment and to compensate Lender for the loss of the use of such delinquent payment.
Such amount shall be secured by the Loan Documents.

3. CASH MANAGEMENT AND RESERVES

     3.1 Cash Management Arrangements. Borrower shall cause all Rents to be transmitted
directly by non-residential tenants or Managers of the Property into a trust account (the “Clearing
Account”) maintained by Borrower at a local bank selected by Borrower (the “Clearing Bank”) as more
fully described in the Clearing Account Agreement. Without in any way limiting the foregoing, all
Rents received by Borrower or Manager shall be deposited into the Clearing Account within one
Business Day of receipt. During a Cash Management Period, funds deposited into the Clearing
Account shall be swept by the Clearing Bank on a daily basis into an Eligible Account at the
Deposit Bank controlled by Lender (the “Deposit Account”) and applied and disbursed in accordance
with this Agreement. During a period other than a Cash Management Period, funds deposited into the
Clearing Account shall be swept by the Clearing Bank into an operating account set up by Borrower
as and when determined by Borrower. Funds in the Deposit Account shall be invested at Lender’s
discretion only in Permitted Investments.

16

 

Lender will also establish subaccounts of the Deposit Account which shall at all times be
Eligible Accounts (and may be ledger or book entry accounts and not actual accounts) (such
subaccounts are referred to herein as “Subaccounts”). Notwithstanding the foregoing, at all times
other than during the continuance of a Cash Management Period, Lender may, in its discretion, elect
to maintain the deposits and reserves required under this Agreement in an Eligible Account at a
bank or other depository selected by Lender other than the Deposit Bank in which case, all
references to the Deposit Account and any Subaccounts hereunder shall be deemed to include such
Eligible Account and the subaccounts of any such Eligible Account and all funds in such Eligible
Account shall be invested at Lender’s discretion only in Permitted Investments. The Deposit
Account and any Subaccount will be under the sole control and dominion of Lender, and Borrower
shall have no right of withdrawal therefrom. Borrower shall pay for all expenses of opening and
maintaining all of the above accounts.

     3.2 Required Repairs.

          3.2.1 Completion of Required Repairs. Borrower shall perform and complete each item
of the repairs and environmental remedial work at the Property described on Schedule 2 (the
“Required Repairs”) within twelve (12) months of the date hereof or such shorter period of time for
such item set forth on Schedule 2.

          3.2.2 Required Repairs Reserves. On the date hereof, Borrower shall deposit with
Lender the aggregate amount set forth on Schedule 2 as being required to complete the Required
Repairs and Lender shall cause such amount to be transferred to a Subaccount (the “Required Repairs
Subaccount”). Provided no Default or Event of Default has occurred and is continuing, Lender shall
disburse funds held in the Required Repairs Subaccount to Borrower, within fifteen (15) days after
the delivery by Borrower to Lender of a request therefor (but not more often than once per month),
in increments of at least $5,000), accompanied by the following items (which items shall be in form
and substance reasonably satisfactory to Lender): (i) an Officer’s Certificate (A) certifying that
the Required Repairs or any portion thereof which are the subject of the requested disbursement
have been completed in a good and workmanlike manner and in accordance with all applicable Legal
Requirements, (B) identifying each Person that supplied materials or labor in connection with such
Required Repairs or any portion thereof in any material respect and (C) stating that each such
Person has been or, upon receipt of the requested disbursement, will be paid in full with respect
to the portion of the Required Repairs which is the subject of the requested disbursement; (ii)
copies of appropriate Lien waivers or other evidence of payment satisfactory to Lender; (iii) at
Lender’s option, a title search for the Property indicating that it is free from all Liens not
previously approved by Lender; (iv) a copy of each License required to be obtained with respect to
the portion of the Required Repairs which is the subject of the requested disbursement; and (v)
such other evidence as Lender shall reasonably request that the Required Repairs which are the
subject of the requested disbursement have been completed and paid for.

     3.3 Taxes and Insurance. Borrower shall pay to Lender on each Payment Date (i)
one-twelfth of the Taxes that Lender estimates will be payable during the next twelve (12) months
in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days
prior to their respective due dates and (ii) one-twelfth of the Insurance Premiums that Lender
estimates will be payable for the renewal of the coverage afforded by the Policies upon

17

 

the expiration thereof in order to accumulate with Lender sufficient funds to pay all such
Insurance Premiums at least thirty (30) days prior to the expiration of the Policies. Such amounts
will be transferred by Lender to a Subaccount (the “Tax and Insurance Subaccount”). Provided that
no Default or Event of Default has occurred and is continuing, Lender will (a) apply funds in the
Tax and Insurance Subaccount to payments of Taxes and Insurance Premiums required to be made by
Borrower pursuant to Sections 5.2 and 7.1, provided that Borrower has promptly supplied Lender with
notices of all Taxes and Insurance Premiums due, or (b) reimburse Borrower for such amounts upon
presentation of evidence of payment and an Officer’s Certificate in form and substance satisfactory
to Lender; subject, however, to Borrower’s right to contest Taxes in accordance with Section 5.2.
In making any payment relating to Taxes and Insurance Premiums, Lender may do so according to any
bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or
insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such
bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien
or title or claim thereof. If Lender determines in its reasonable judgment that the funds in the
Tax and Insurance Subaccount will be insufficient to pay (or in excess of) the Taxes or Insurance
Premiums next coming due, Lender may increase (or decrease) the monthly contribution required to be
made by Borrower to the Tax and Insurance Subaccount.

     Notwithstanding the foregoing or anything to the contrary contained in this Agreement, so long
as no Event of Default under this Agreement or any other Loan Document has occurred, Borrower shall
not be required to make monthly payments of Taxes or Insurance Premiums to Lender as provided in
this Section 3.3, provided Borrower shall pay, or shall cause the tenant of any Property to pay,
all Taxes in accordance with Section 5.2 below and all Insurance Premiums in accordance with
Section 7.1 below, and shall deliver to Lender written evidence reasonably satisfactory to Lender
of the full payment of such Taxes and Insurance Premiums within the time periods and otherwise as
provided in Sections 5.2 and 7.1. The failure of Borrower to deliver to Lender such written
evidence of payment shall at the option of Lender be an Event of Default hereunder.

     3.4 [Intentionally Deleted.]

     3.5 Rollover Reserve/Letter of Credit.

          3.5.1 Rollover Reserve. If as of October 15, 2010, the T-Mobile Lease has not been
renewed or a new lease entered into with the existing tenant, or a new lease entered into with a
new tenant for the entire T-Mobile Property, which renewal or new leases are subject to the
approval of Lender as provided in Section 5.9 of this Agreement, commencing on the next occurring
Payment Date and continuing on each Payment Date thereafter, all Excess Cash Flow from all of the
Properties shall be paid to Lender, and transferred by Lender into a Subaccount (the “T-Mobile
Rollover Reserve Subaccount”) up to a maximum amount of $1,500,000 (the “T-Mobile Rollover Reserve
Cap”). Once the T-Mobile Rollover Reserve Cap has been met, and the entire T-Mobile Property has
been re-let pursuant to an approved Lease or Leases, the funds in the T-Mobile Rollover Reserve
Subaccount will be available for Approved Leasing Expenses for the T-Mobile Property with respect
to the T-Mobile Property. Borrower shall also pay to Lender for transfer into the T-Mobile Rollover
Reserve Subaccount all payments received from the tenant at the T-Mobile Property in connection
with the early termination or cancellation of

18

 

the T-Mobile Leases, including fees, penalties and commissions. Provided that no Default or
Event of Default has occurred and is continuing, Lender shall disburse funds held in the Rollover
Reserve Subaccount to Borrower within fifteen (15) days after the delivery by Borrower to Lender of
a request therefor (but not more often than once per month), in increments of at least $5,000,
provided (i) such disbursement is for an Approved Leasing Expense for the T-Mobile Property; (ii)
Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense)
performance of any construction work associated with such Approved Leasing Expense for the T-Mobile
Property; and (iii) the request for disbursement is accompanied by (A) an Officer’s Certificate
certifying (v) that such funds will be used only to pay (or reimburse Borrower for) Approved
Leasing Expenses for the T-Mobile Property and a description thereof, (w) that all outstanding
trade payables (other than those to be paid from the requested disbursement or those constituting
Permitted Indebtedness) are being paid as agreed, (x) that the same has not been the subject of a
previous disbursement, (y) that all previous disbursements have been used only to pay (or reimburse
Borrower for) the previously identified Approved Leasing Expenses for the T-Mobile Property and (z)
that any construction work associated with such Approved Leasing Expenses for the T-Mobile Property
has been completed in a good and workmanlike manner and in material compliance with all applicable
Legal Requirements, (B) reasonably detailed supporting documentation as to the amount, necessity
and purpose therefore, (C) copies of appropriate Lien waivers or other evidence of payment
satisfactory to Lender in connection with any construction work associated with such Approved
Leasing Expenses for the T-Mobile Property, and (D) at Lender’s option, a title search for the
Property indicating that it is free from all Liens not previously approved by Lender. Borrower
shall be entitled to request payment (rather than reimbursement) of Approved Leasing Expenses for
the T-Mobile Property, however, any such disbursement of more than $10,000 to pay (rather than
reimburse) Approved Leasing Expenses for the T-Mobile Property may, at Lender’s option, be made by
joint check payable to Borrower and the payee of such Approved Leasing Expenses for the T-Mobile
Property.

          3.5.2 Letter of Credit. In lieu of the requirement that all Excess Cash Flow be paid
to Lender as provided in Section 3.5.1, Borrower may deposit with Lender on October 15, 2010, as
additional security for the repayment of the Loan, an unconditional, irrevocable letter of credit
with a face available amount of $1,500,000.00 issued for the benefit of Lender by a Rated Financial
Institution, in form and substance satisfactory to Lender, in Lender’s sole discretion, and having
an expiration date not earlier than one year following its issuance date (as such letter of credit,
may be renewed, extended, or replaced, the “Letter of Credit”). The Letter of Credit shall provide
that it shall renew automatically for consecutive terms of not less than one year each, unless the
issuer thereof provides Lender with written notice not less than 90 days prior expiry date that the
Letter of Credit will not be renewed. If such notice is provided to Lender, then Borrower shall,
prior to the 30th day before the expiry date of the Letter of Credit, deliver to Lender a
replacement Letter of Credit satisfying the terms of this Section. Lender is authorized to draw
under the Letter of Credit: (i) upon of after an Event of Default, (ii) if fewer than 30 days
remain prior to the expiry thereof and the same has not been renewed or replaced with cash or an
new Letter of Credit, in each case conforming to the requirements of this Section 3.5, or (iii) at
Borrower’s request. In connection with a written request by Borrower to draw on the Letter of
Credit, Lender shall draw against the Letter of Credit within fifteen (15) days after the delivery
by Borrower to Lender of a request therefor (but not more often than once per month and in
increments of at least $5,000, provided the Letter of Credit permits partial draws thereunder) and
deposit the same into the Rollover Reserve Subaccount to be disbursed to pay Approved Leasing
Expenses for the T-Mobile Property in accordance with the terms and conditions of Section 3.5.1.

19

 

     3.6 Operating Expense Subaccount. During a Cash Management Period, Rents shall be
transferred into a Subaccount (the “Operating Expense Subaccount”) as provided in Section 3.10.
Provided no Default or Event of Default has occurred and is continuing, Lender shall disburse funds
held in the Operating Expense Subaccount to Borrower, within fifteen (15) days after delivery by
Borrower to Lender of a request therefor (but not more often than once per month), in increments of
at least $1,000, provided (i) such disbursement is for an Approved Operating Expense; and (ii) such
disbursement is accompanied by (A) an Officer’s Certificate certifying (w) that such funds will be
used to pay Approved Operating Expenses and a description thereof, (x) that all outstanding trade
payables (other than those to be paid from the requested disbursement or those constituting
Permitted Indebtedness) have been paid in full, (y) that the same has not been the subject of a
previous disbursement, and (z) that all previous disbursements have been or will be used to pay the
previously identified Approved Operating Expenses, and (B) reasonably detailed documentation
satisfactory to Lender as to the amount, necessity and purpose therefor.

     3.7 Casualty/Condemnation Subaccount. Borrower shall pay, or cause to be paid, to
Lender all Proceeds or Awards due to any Casualty or Condemnation to be transferred to a Subaccount
(the “Casualty/Condemnation Subaccount”) in accordance with the provisions of Section 7. All
amounts in the Casualty/Condemnation Subaccount shall disbursed in accordance with the provisions
of Section 7.

     3.8 Security Deposits. Borrower shall keep all security deposits under Leases at a
separately designated account under Borrower’s control at the Clearing Bank so that the security
deposits shall not be commingled with any other funds of Borrower (such account, the “Security
Deposit Account”). During a Cash Management Period, Borrower shall, upon Lender’s request, if
permitted by applicable Legal Requirements, turn over to Lender the security deposits (and any
interest theretofore earned thereon) under Leases, to be held by Lender in a Subaccount (the
“Security Deposit Subaccount”) subject to the terms of the Leases. Security deposits held in the
Security Deposit Subaccount will be released by Lender upon notice from Borrower together with such
evidence as Lender may reasonably request that such security deposit is required to be returned to
a tenant pursuant to the terms of a Lease or may be applied as Rent pursuant to the rights of
Borrower under the applicable Lease. Any letter of credit or other instrument that Borrower
receives in lieu of a cash security deposit under any Lease entered into after the date hereof
shall (i) be maintained in full force and effect in the full amount unless replaced by a cash
deposit as hereinabove described, (ii) if permitted pursuant to any Legal Requirements, name Lender
as payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender), (iii) the
original thereof shall be delivered to Lender during any Cash Management Period promptly upon
request by Lender.

     3.9 Grant of Security Interest; Application of Funds. As security for payment of the
Debt and the performance by Borrower of all other terms, conditions and provisions of the Loan
Documents, Borrower hereby pledges and assigns to Lender, and grants to Lender a security interest
in, all of Borrower’s right, title and interest in and to all Rents and in and to all

20

 

payments to or monies held in the Clearing Account, the Deposit Account and all Subaccounts
created pursuant to this Agreement (collectively, the “Cash Management Accounts”). Borrower hereby
grants to Lender a continuing security interest in, and agrees to hold in trust for the benefit of
Lender, all Rents in its possession prior to the (i) payment of such Rents to Lender or (ii)
deposit of such Rents into the Deposit Account. Borrower shall not, without obtaining the prior
written consent of Lender, further pledge, assign or grant any security interest in any Cash
Management Account, or permit any Lien to attach thereto, or any levy to be made thereon, or any
UCC-l Financing Statements, except those naming Lender as the secured party, to be filed with
respect thereto. This Agreement is, among other things, intended by the parties to be a security
agreement for purposes of the UCC. Upon the occurrence and during the continuance of an Event of
Default, Lender may apply any sums in any Cash Management Account in any order and in any manner as
Lender shall elect in Lender’s discretion without seeking the appointment of a receiver and without
adversely affecting the rights of Lender to foreclose the Lien of the Mortgage or exercise its
other rights under the Loan Documents. Cash Management Accounts shall not constitute trust funds
and may be commingled with other monies held by Lender. Borrower shall be entitled to receive on a
semi-annual basis interest on any balance in the Deposit Account and any Subaccounts other than
Subaccounts established for the collection of Escrows (including any Eligible Account maintained at
a bank or other depository other than the Deposit Bank selected by Lender in accordance with
Section 3.1) at a rate equal to the U.S. and Regional Composite National Bank Average Retail
Savings Money Market CD Yield, from time to time. Upon repayment in full of the Debt, all
remaining funds in the Subaccounts, if any, shall be promptly disbursed to Borrower.

     3.10 Property Cash Flow Allocation.

          (a) During a Cash Management Period, any Rents deposited into the Deposit Account during the
immediately preceding Interest Period shall be applied on each Payment Date as follows in the
following order of priority: (i) First, to make payments into the Tax and Insurance Subaccount as
required under Section 3.3; (ii) Second, to pay the monthly portion of the fees charged by the
Deposit Bank in accordance with the Deposit Account Agreement; (iii) Third, to Lender to pay the
Monthly Debt Service Payment Amount due on such Payment Date (plus, if applicable, interest at the
Default Rate and all other amounts, other than those described under other clauses of this Section
3.10(a), then due to Lender under the Loan Documents), which payments shall be made into a
Subaccount (the “Monthly Debt Service Subaccount”) to be established for such purpose under the
Deposit Account Agreement; (iv) Fourth, to make payments into the Capital Reserve Subaccount as
required under Section 3.4; (v) Fifth, to make payments for Approved Operating Expenses as required
under Section 3.6; (vi) Sixth, to make payments into the Rollover Reserve Subaccount as required
under Section 3.5; and (vii) Lastly, unless all Excess Cash Flow is payable to Lender as provided
in Section 3.5, payments to Borrower of any excess amounts.

          (b) The failure of Borrower to make all of the payments required under clauses (i) through
(vii) of Section 3.10(a) in full on each Payment Date shall constitute an Event of Default under
this Agreement.

21

 

          (c) Notwithstanding anything to the contrary contained in this Section 3.10, after the
occurrence of an Event of Default, Lender may apply all Rents deposited into the
Deposit Account and other proceeds of repayment in such order and in such manner as Lender
shall elect.

4. REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender as of the date hereof that:

     4.1 Organization; Special Purpose. Each of Borrower and Borrower Representative has
been duly organized and is validly existing and in good standing under the laws of the state of its
formation, with requisite power and authority, and all rights, licenses, permits and
authorizations, governmental or otherwise, necessary to own its properties and to transact the
business in which it is now engaged. Each of Borrower and Borrower Representative is duly
qualified to do business and is in good standing in each jurisdiction where it is required to be so
qualified in connection with its properties, business and operations. Borrower is a Special
Purpose Bankruptcy Remote Entity.

     4.2 Proceedings; Enforceability. Borrower has taken all necessary action to authorize
its execution, delivery and performance of the Loan Documents. The Loan Documents have been duly
executed and delivered by Borrower and constitute legal, valid and binding obligations of Borrower
enforceable against Borrower in accordance with their respective terms, subject to applicable
bankruptcy, insolvency and similar laws affecting rights of creditors generally, and general
principles of equity. To the knowledge of Borrower, the Loan Documents are not subject to any
right of rescission, set-off, counterclaim or defense, including the defense of usury, and Borrower
has not asserted any such right setoff, counterclaim, or defense. To the knowledge of Borrower, no
exercise of any of the terms of the Loan Documents, or any right thereunder, will render any Loan
Document unenforceable.

     4.3 No Conflicts. The execution, delivery and performance of the Loan Documents by
Borrower and the transactions contemplated hereby will not conflict with or result in a breach in
any material respect of any of the terms or provisions of, or constitute a default under, or result
in the creation or imposition of any Lien (other than pursuant to the Loan Documents) upon any of
the property of Borrower pursuant to the terms of, any agreement or instrument to which Borrower is
a party or by which its property is subject, nor will such action result in any violation of the
provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or any of its properties. Borrower’s rights under the Licenses and the
Management Agreement will not be adversely affected by the execution and delivery of the Loan
Documents, Borrower’s performance thereunder, the recordation of the Mortgage, or the exercise of
any remedies by Lender. Any consent, approval, authorization, order, registration or qualification
of or with any Governmental Authority required for the execution, delivery and performance by
Borrower of the Loan Documents has been obtained and is in full force and effect.

     4.4 Litigation. There are no actions, suits or other proceedings at law or in equity
by or before any Governmental Authority now pending or to Borrower’s knowledge threatened against
or affecting Borrower, Borrower Representative, the Property or the Pledge Collateral, which, if
adversely determined, might materially adversely affect the condition (financial or
otherwise) or business of Borrower, Borrower Representative, or the condition or ownership of
the Property or the Pledged Collateral.

22

 

     4.5 Agreements. Borrower is not a party to any agreement or instrument or to its
knowledge subject to any restriction which is likely to have a material adverse effect on Borrower,
the Property or the Pledged Collateral, or Borrower’s business, properties, operations or
condition, financial or otherwise. Borrower is not in default in any material respect in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in any Permitted Encumbrance or any other material agreement or instrument to which it is a party
or by which it or the Property is bound.

     4.6 Title. Borrower has good, marketable and indefeasible title to the leasehold
estate in the real property created pursuant to the Ground Lease and good title to the balance of
the Property, free and clear of all Liens except the Permitted Encumbrances. Borrower is the
holder of the Industrial Revenues Bonds, free and clear of all Liens, and as the holder thereof is
the sole beneficiary under the Indenture. All transfer taxes, deed stamps, intangible taxes or
other amounts in the nature of transfer taxes required to be paid by any Person under applicable
Legal Requirements in connection with the transfer of the Property to Borrower have been paid. The
Mortgage when properly recorded in the appropriate records, together with any UCC Financing
Statements required to be filed in connection therewith, will create (i) a valid, perfected first
priority lien on Borrower’s interest in the Property and (ii) valid and perfected first priority
security interests in and to, and perfected collateral assignments of, all personalty (including
the Leases), all in accordance with the terms thereof, in each case subject only to any applicable
Permitted Encumbrances. The execution and delivery of the Pledge Agreement creates a valid lien in
the Pledged Collateral and the proceeds thereof. All mortgage, recording, stamp, intangible or
other similar taxes required to be paid by any Person under applicable Legal Requirements in
connection with the execution, delivery, recordation, filing, registration, perfection or
enforcement of any of the Loan Documents have been paid. The Permitted Encumbrances do not
materially adversely affect the operation or use of the Property, or Borrower’s ability to repay
the Loan. No Condemnation or other proceeding has been commenced or, to Borrower’s knowledge, is
contemplated with respect to all or part of the Property or for the relocation of roadways
providing access to the Property. Except for the Ground Lease Option, there are no outstanding
options to purchase or rights of first refusal affecting all or any portion of the Property. To
Borrower’s knowledge, based solely on the survey, title work and appraisal obtained by borrower and
delivered to Lender, all of the Improvements included in determining the appraised value of the
Property lie wholly within the boundaries and building restriction lines of the Property, and no
improvement on an adjoining property encroaches upon the Property, and no easement or other
encumbrance upon the Property encroaches upon any of the Improvements, except those insured against
by the title insurance policy insuring the Lien of the Mortgage. Each parcel comprising the
Property is a separate tax lot and is not a portion of any other tax lot that is not a part of the
Property. There are no pending or to the knowledge of Borrower proposed, special or other
assessments for public improvements or otherwise affecting the Property, or any contemplated
improvements to the Property that may result in such special or other assessments.

23

 

     4.7 No Bankruptcy Filing. Borrower is not contemplating either the filing of a
petition by it under any state or federal bankruptcy or insolvency law or the liquidation of all or
a major portion of its property (a “Bankruptcy Proceeding”), and Borrower has no knowledge of
any Person contemplating the filing of any such petition against it. In addition, neither Borrower
nor Borrower Representative nor any principal nor Affiliate (other than holders of publicly traded
shares or securities of Guarantor) of either has been a party to, or the subject of a Bankruptcy
Proceeding for the past ten years.

     4.8 Full and Accurate Disclosure. No statement of fact made by Borrower in any Loan
Documents contains any untrue statement of a material fact or to the knowledge of Borrower omits to
state any material fact necessary to make statements contained therein not misleading. There is no
material fact presently known to Borrower that has not been disclosed to Lender which adversely
affects, or, as far as Borrower can reasonably foresee, might have a material adverse effect on,
the Property, the Pledged Collateral or the business, operations or condition (financial or
otherwise) of Borrower. All financial data, including the audited statements of cash flow and
income and operating expense, that have been delivered to Lender in respect of Borrower and the
Property (i) are true, complete and correct in all material respects, (ii) accurately represent the
financial condition of Borrower and the Property as of the date of such reports, and (iii) to the
extent prepared by an independent certified public accounting firm, have been prepared in
accordance with GAAP consistently applied throughout the periods covered, except as disclosed
therein. Except as disclosed by such audited statements, Borrower has no contingent liabilities,
liabilities for taxes, unusual forward or long-term commitments, unrealized or anticipated losses
from any unfavorable commitments or any liabilities or obligations not expressly permitted by this
Agreement. Since the date of such financial statements, there has been no materially adverse
change in the financial condition, operations or business of Borrower or the Property from that set
forth in said financial statements.

     4.9 No Plan Assets. Borrower is not an “employee benefit plan,” as defined in Section
3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes or will
constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section
2510.3-101.

     4.10 Compliance. Except as set forth in Schedule 4.10 attached hereto and made a part
hereof, Borrower and the Property and the use thereof comply in all material respects with all
applicable Legal Requirements (including with respect to parking and applicable zoning and land use
laws, regulations and ordinances). Borrower is not in default or violation of any order, writ,
injunction, decree or demand of any Governmental Authority, the violation of which might materially
adversely affect the condition (financial or otherwise) or business of Borrower. Borrower has
received no notice that the Property is used for any purpose other than the purposes expressly
permitted pursuant to the Property Leases. In the event that all or any part of the Improvements
are destroyed or damaged, said Improvements can, except as set forth in Section 4.10, be legally
reconstructed to their condition prior to such damage or destruction, and thereafter exist for the
same use without violating any zoning or other ordinances applicable thereto and without the
necessity of obtaining any variances or special permits. No legal proceedings are pending or, to
Borrower’s knowledge, threatened with respect to the zoning of the Property. Neither the zoning
nor any other right to construct, use or operate the Property is in any way dependent upon or
related to any property other than the Property. Except as set forth in Section 4.10, all
certifications, permits, licenses and approvals, including certificates of completion and occupancy
permits required for the legal use, occupancy and operation of the
Property (collectively, the “Licenses”), have been obtained and are in full force and effect.
The use being made of the Property is in conformity with the certificate of occupancy issued for
the Property and all other restrictions, covenants and conditions affecting the Property.

24

 

     4.11 Contracts. Except as set froth in Schedule 4.11 attached hereto and made a part
hereof, there are no service, maintenance or repair contracts affecting the Property that are not
terminable on one month’s notice or less without cause and without penalty or premium. All
service, maintenance or repair contracts to which Borrower is a party affecting the Property have
been entered into at arms-length in the ordinary course of Borrower’s business and provide for the
payment of fees in amounts and upon terms comparable to existing market rates.

     4.12 Federal Reserve Regulations; Investment Company Act. No part of the proceeds of
the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other
purpose that would be inconsistent with such Regulation U or any other regulation of such Board of
Governors, or for any purpose prohibited by Legal Requirements or any Loan Document. Borrower is
not (i) an “investment company” or a company “controlled” by an “investment company,” within the
meaning of the Investment Company Act of 1940, as amended; (ii) a “holding company” or a
“subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a
“subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as
amended; or (iii) subject to any other federal or state law or regulation which purports to
restrict or regulate its ability to borrow money.

     4.13 Utilities and Public Access. The Property has rights of access to public ways
and is served by water, sewer, sanitary sewer and storm drain facilities adequate to service it for
its intended uses. All public utilities necessary to the full use and enjoyment of the Property
are located in the public right-of-way abutting the Property, and all such utilities are connected
so as to serve the Property without passing over other property absent a valid easement. All roads
necessary for the use of the Property for its current purpose have been completed and dedicated to
public use and accepted by all Governmental Authorities.

     4.14 Physical Condition. Except as set forth in Schedule 2 of this Agreement and the
respective Property Condition Surveys for all five properties, each dated April 4, 2006, prepared
by Velocity Consulting, Inc., to Borrower’s knowledge, the Property, including all Improvements,
parking facilities, systems, Equipment and landscaping, are in good condition, order and repair in
all material respects; there exists no structural or other material defect or damages to the
Property, whether latent or otherwise. Borrower has not received notice from any insurance company
or bonding company of any defect or inadequacy in the Property, or any part thereof, which would
adversely affect in any material respect its insurability or cause the imposition of extraordinary
premiums or charges thereon or any termination of any policy of insurance or bond. No portion of
the Property is located in an area as identified by the Federal Emergency Management Agency as an
area having special flood hazards.

     4.15 Leases. Borrower has delivered to Lender a true, correct and complete rent roll
for the Property (the “Rent Roll”), which includes all Leases affecting the Property. No Leases
other than the Property Leases and the Ground Lease affect the Property. Except as set forth on
the Rent Roll: (i) each Property Lease is in full force and effect; (ii) the tenants under the

25

 

Property Leases have accepted possession of and are in occupancy of all of their respective
demised premises, have commenced the payment of rent under the Property Leases, and there are no
offsets, claims or defenses to the enforcement thereof; (iii) all rents due and payable under the
Property Leases have been paid current and no portion thereof has been paid for any period more
than thirty (30) days in advance; (iv) the rent payable for the month of April, 2006 under each
Property Lease is the amount of fixed rent set forth in the Rent Roll, and to the knowledge of
Borrower, there is no claim or basis for a claim by the tenant thereunder for an adjustment to the
rent; (v) no claim against Borrow has been asserted under any Property Lease which remains
outstanding, there are, to the knowledge of Borrower, no defaults on the part of the landlord under
any Property Lease, and no event has occurred which, with the giving of notice or passage of time,
or both, would constitute such a default; (vi) to Borrower’s knowledge, there is no present
material default by any tenant under any Property Lease; (vii) all security deposits under the
Property Leases are as set forth on the Rent Roll and are held consistent with Section 3.8; (viii)
Borrower is the sole owner of the entire lessor’s interest in each Property Lease; (ix) each Lease
is the valid, binding and enforceable obligation of Borrower subject to applicable bankruptcy,
insolvency and similar laws affecting rights of creditors generally, and general principles of
equity; (x) to the knowledge of Borrower, no Person has any possessory interest in, or right to
occupy, the Property except under the terms of the Property Lease; and (xi) each Property Lease is
subordinate to the Loan Documents, either pursuant to its terms or pursuant to a subordination and
attornment agreement. None of the Property Leases contains any option to purchase or right of
first refusal to purchase the Property or any part thereof. Except as set forth in the next
sentence, neither the Property Leases nor the Rents have been assigned or pledged except to Lender,
and no other Person has any interest therein except the tenants thereunder. The T-Mobile Lease is
encumbered by the Bond documents, and the Trustee has an interest in the T-Mobile Lease pursuant to
the Bond Documents.

     4.16 Fraudulent Transfer. Borrower has not entered into the Loan or any Loan Document
with the actual intent to hinder, delay, or defraud any creditor, and Borrower has received
reasonably equivalent value in exchange for its obligations under the Loan Documents. Giving
effect to the transactions contemplated by the Loan Documents, the fair saleable value of
Borrower’s assets exceeds and will, immediately following the execution and delivery of the Loan
Documents, exceed Borrower’s total liabilities, including subordinated, unliquidated, disputed or
contingent liabilities, including the maximum amount of its contingent liabilities or its debts as
such debts become absolute and matured. Borrower’s assets do not and, immediately following the
execution and delivery of the Loan Documents will not, constitute unreasonably small capital to
carry out its business as conducted or as proposed to be conducted. Borrower does not intend to,
and does not believe that it will, incur debts and liabilities (including contingent liabilities
and other commitments) beyond its ability to pay such debts as they mature (taking into account the
timing and amounts to be payable on or in respect of obligations of Borrower).

     4.17 Ownership of Borrower. The organizational chart attached hereto as Schedule 3 is
complete and accurate and illustrates all Persons who have a direct or indirect ownership interest
in Borrower.

26

 

     4.18 Management Agreement. The T-Mobile Management Agreement is in full force and
effect. To the knowledge of Borrower, there is no default, breach or violation existing
thereunder, and no event has occurred (other than payments due but not yet delinquent) that,
with the passage of time or the giving of notice, or both, would constitute a default, breach or
violation thereunder, by either party thereto. The terms and provisions of the T-Mobile Management
Agreement, are subordinate to the Loan Documents. With respect to Property other than the T-Mobile
Property, as of the date of this Agreement, Borrower has not engaged a property manager to operate
such Property, nor is there any management agreement in effect with respect to or affecting the
Property, and neither Borrower nor any other Person receives or is entitled to the payment of a fee
or other similar compensation for the management of such Property.

     4.19 Hazardous Substances. Except as set froth in the Environmental Reports listed on
Schedule 4.19 attached hereto and made a part hereof: (i) the Property is not to the knowledge of
Borrower in violation of any Legal Requirement pertaining to or imposing liability or standards of
conduct concerning environmental regulation, contamination or clean-up, including the Comprehensive
Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act,
the Emergency Planning and Community Right-to-Know Act of 1986, the Hazardous Substances
Transportation Act, the Solid Waste Disposal Act, the Clean Water Act, the Clean Air Act, the Toxic
Substance Control Act, the Safe Drinking Water Act, the Occupational Safety and Health Act, Legal
Requirements relating to Toxic Mold, and any state super-lien and environmental clean-up statutes,
any local law requiring related permits and licenses, any common law relating to Toxic Mold or
other Hazardous Substances, and all amendments to and regulations in respect of the foregoing laws
(collectively, “Environmental Laws”); (ii) the Property is not subject to any private or
governmental Lien or judicial or administrative notice or action or inquiry, investigation or claim
relating to hazardous, toxic and/or dangerous substances, including, Toxic Mold, or any other
substances or materials which are included under or regulated by Environmental Laws (collectively,
“Hazardous Substances”); (iii) to Borrower’s knowledge, no Hazardous Substances are or have been
(including the period prior to Borrower’s acquisition of the Property), discharged, generated,
treated, disposed of or stored on, incorporated in, or removed or transported to or from the
Property other than in compliance with all Environmental Laws; (iv) to Borrower’s knowledge,
without any obligation to enter upon and inspect any nearby real property, no Hazardous Substances
are present in, on or under any nearby real property which could migrate to or otherwise affect the
Property; (v) no underground storage tanks exist on the Property and the Property to Borrower’s
knowledge, has never been used as a landfill; and (vi) there have been no environmental
investigations, studies, audits, reviews or other analyses conducted by or on behalf of Borrower
which have not been provided to Lender.

     4.20 Principal Place of Business. The principal place of business of Borrower is its
primary address for notices as set forth in Section 6.1, and Borrower has no other place of
business.

     4.21 Other Debt. There is no indebtedness with respect to the Property or any excess
cash flow or any residual interest therein, whether secured or unsecured, other than Permitted
Encumbrances and Permitted Indebtedness.

27

 

     4.22 Embargoed Person. None of the funds or assets of Guarantor or of Borrower
constitute property of, or are beneficially owned directly or, to Borrower’s knowledge, indirectly
(other than holders of publicly traded shares or securities of Guarantor who are not officers
or directors of Guarantor), by any Embargoed Person (as hereinafter defined) and (b) no Embargoed
Person has any direct interest, and to Borrower’s knowledge, as of the date hereof, indirect
interest, of any nature whatsoever in Borrower or any Guarantor (other than holders publicly traded
shares or securities of Guarantor who are not officers or directors of Guarantor), as applicable,
with the result that the investment in Borrower or any Guarantor, as applicable (whether directly
or indirectly), is prohibited by law or the Loan is in violation of law. Notwithstanding the
foregoing, to Borrower’s actual knowledge (without any inquiry), no Embargoed Person currently
holds any publicly traded shares or securities of Guarantor.

     4.23 Anti-Money Laundering. At all times throughout the term of the Loan, including
after giving effect to any Transfers permitted pursuant to the Loan Documents, to the knowledge of
Borrower, none of the funds of Borrower, Borrower Representative or any Guarantor, as applicable,
that are used to consummate this transaction or to repay the Loan shall be derived from or are the
proceeds of any unlawful activity, with the result that the investment in Borrower, Borrower
Representative or any Guarantor, as applicable (whether directly or indirectly), is prohibited by
law or the Loan is in violation of law or may cause any of the Mortgaged Property to be subject to
forfeiture or seizure. Borrower has ascertained the identity of all persons and entities who have
provided funds to capitalize Borrower and has conducted verification procedures which are
sufficient to establish the identity and source of such funds.

     4.24 Ground Lease and Other Bond Documents. The Ground Lease and each of the other
Bond Documents is in full force and effect, and there are no events of default by Borrower
thereunder have been declared or exist, and to Borrower’s knowledge no event has occurred, which
but for the passage of time, or giving of notice, or both, would constitute an event of default.
All rents and other sums due and payable under the Ground Lease and the other Bond Documents,
including without limitation under the Direct Pay Agreement, have been paid in full.

All of the representations and warranties in this Article 4 and elsewhere in the Loan Documents (i)
shall survive for so long as any portion of the Debt remains owing to Lender and (ii) shall be
deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter
made by Lender or on its behalf, provided, however, that the representations, warranties and
covenants set forth in Section 4.19 shall survive so long as the Debt or any portion thereof is
outstanding and unpaid.

5. COVENANTS

Until the end of the Term, Borrower hereby covenants and agrees with Lender that:

     5.1 Existence. Each of Borrower and Borrower Representative shall (i) do or cause to
be done all things necessary to preserve, renew and keep in full force and effect its existence,
rights, and franchises, (ii) continue to engage in the business presently conducted by it, (iii)
obtain and maintain all Licenses, and (iv) qualify to do business and remain in good standing under
the laws of each jurisdiction, in each case as and to the extent required for the ownership,
maintenance, management and operation of the Property.

28

 

     5.2 Taxes. Subject to the contest provisions of this Section 5.1, Borrower shall pay
or cause the tenants under the Property Leases to pay all Taxes as the same become due and payable,
and deliver to Lender receipts for payment or other evidence satisfactory to Lender that the Taxes
have been so paid no later than thirty (30) days before they would be delinquent if not paid
(provided, however, that Borrower need not pay such Taxes nor furnish such receipts for payment of
Taxes paid by Lender pursuant to Section 3.3). Borrower shall not suffer and shall promptly cause
to be paid and discharged any Lien against the Property, and shall promptly pay or cause the
tenants under the Property Leases to pay for all utility services provided to the Property. After
prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the amount or validity or
application of any Taxes, provided that (i) no Default or Event of Default has occurred and is
continuing, (ii) such proceeding shall suspend the collection of the Taxes, (iii) such proceeding
shall be permitted under and be conducted in accordance with the provisions of any other instrument
to which Borrower is subject and shall not constitute a default thereunder, (iv) no part of or
interest in the Property will be in danger of being sold, forfeited, terminated, canceled or lost,
(v) Borrower shall have furnished such security as may be required in the proceeding, or as may be
requested by Lender, to insure the payment of any such Taxes, together with all interest and
penalties thereon, which shall not be less than one hundred twenty-five percent (125%) of the Taxes
being contested, and (vi) Borrower shall promptly upon final determination thereof pay or cause the
tenants under any Property Leases to pay the amount of such Taxes, together with all costs,
interest and penalties. Lender may pay over any such security or part thereof held by Lender to
the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such
claimant is established.

     Notwithstanding the foregoing or anything to the contrary contained in this Agreement, so long
as no Event of Default under this Agreement or any other Loan Document has occurred, Borrower shall
not be required to make monthly payments of Taxes to Lender as provided in this Section 5.2 and
Section 3.3 above, provided Borrower shall pay, or shall cause the tenant of any Property to pay,
all Taxes no later than the date when such amounts are due and shall deliver to Lender written
evidence reasonably satisfactory to Lender of the full payment of such Taxes, promptly upon such
payment but in no event later than fifteen (15) Business Days after the date when such payments are
due. The failure of Borrower to deliver to Lender such written evidence of payment as provided in
this Section 5.2 shall at the option of Lender be an Event of Default hereunder.

     5.3 Repairs; Maintenance and Compliance; Alterations.

          5.3.1 Repairs; Maintenance and Compliance. Borrower shall at all times maintain,
preserve and protect all franchises and trade names, and Borrower shall cause (including without
limitation through enforcement of the provisions of the Property Leases in a commercially
reasonable manner) the Property to be maintained in a good and safe condition and repair and shall
not except as otherwise permitted by the express terms of the Property Leases, remove, demolish or
alter the Improvements or Equipment (except for alterations performed in accordance with Section
5.3.2 or the Property Leases, and normal replacement of Equipment with Equipment of equivalent
value and functionality). Borrower shall promptly comply (including without limitation through use
of commercially reasonable efforts to cause the tenants under the Property Leases to comply) with
all Legal Requirements and promptly and timely cure

29

 

properly any violation of a Legal Requirement. Borrower shall notify Lender in writing within
one Business Day after Borrower first receives notice of any such non-compliance. Subject to
Section 7.2 with respect to a Casualty, Borrower shall or shall cause tenant under the Property
Leases promptly to repair, replace or rebuild any part of the Property that becomes damaged, worn
or dilapidated and shall complete and pay for any Improvements at any time in the process of
construction or repair.

          5.3.2 Alterations. Borrower may, or may permit a tenant in accordance with its
Property Lease to, without Lender’s consent, perform alterations to the Improvements and Equipment
which (i) do not constitute a Material Alteration, (ii) do not adversely affect Borrower’s
financial condition or the value or Net Operating Income of the Property and (iii) are in the
ordinary course of Borrower’s or such tenant’s business. Neither Borrower nor any tenant shall
perform any Material Alteration without Lender’s prior written consent, which consent shall not be
unreasonably withheld or delayed; provided, however, that Lender may, in its sole and absolute
discretion, withhold consent to any alteration the cost of which is reasonably estimated to exceed
$1,000,000 or which is likely to result in a decrease of Net Operating Income by two and one-half
percent (2.5%) or more for a period of thirty (30) days or longer. Lender may, as a condition to
giving its consent to a Material Alteration, require that Borrower deliver to Lender security for
payment of the cost of such Material Alteration in an amount equal to one hundred twenty-five
percent (125%) of the cost of the Material Alteration as estimated by Lender. Upon substantial
completion of the Material Alteration, Borrower shall provide evidence satisfactory to Lender that
(i) the Material Alteration was constructed in a good and workmanlike manner and in material
compliance with applicable Legal Requirements and substantially in accordance with plans and
specifications approved by Lender (which approval shall not be unreasonably withheld or delayed),
(ii) all contractors, subcontractors, materialmen and professionals who provided work, materials or
services in connection with the Material Alteration have been paid in full and have delivered
unconditional releases of lien (or similar instruments as required by local law) and (iii) all
material Licenses necessary for the use, operation and occupancy of the Material Alteration (other
than those which depend on the performance of tenant improvement work) have been issued. Borrower
shall reimburse Lender upon demand for all reasonable third party out-of-pocket costs and expenses
(including the reasonable fees of any architect, engineer or other professional engaged by Lender)
incurred by Lender in reviewing plans and specifications or in making any determinations necessary
to implement the provisions of this Section 5.3.2.

     5.4 Performance of Other Agreements. Borrower shall observe and perform each and
every term to be observed or performed by it pursuant to the terms of any agreement or instrument
affecting or pertaining to the Property, including the Loan Documents, the Ground Lease, the
Indenture and all other Bond Documents.

     5.5 Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with
respect to, and permit Lender, at its option, to participate in, any proceedings before any
Governmental Authority which may in any way affect the rights of Lender under any Loan Document.

30

 

     5.6 Further Assurances. Borrower shall, at Borrower’s sole cost and expense, (i)
execute and deliver to Lender such documents, instruments, certificates, assignments and
other writings, and do such other acts necessary or desirable, to evidence, preserve and/or
protect the collateral at any time securing or intended to secure the Debt and/or for the better
and more effective carrying out of the intents and purposes of the Loan Documents, as Lender may
reasonably require from time to time; and (ii) upon Lender’s request therefor given from time to
time after the occurrence of any Default or Event of Default pay for (a) reports of UCC, federal
tax lien, state tax lien, judgment and pending litigation searches with respect to Borrower and
Borrower Representative and (b) searches of title to the Property, each such search to be conducted
by search firms reasonably designated by Lender in each of the locations reasonably designated by
Lender.

     5.7 Environmental Matters.

          5.7.1 Hazardous Substances. So long as Borrower owns or is in possession of the
Property, Borrower shall (i) keep the Property free from Hazardous Substances and in compliance
with all Environmental Laws, (ii) promptly notify Lender if Borrower shall become aware that (A)
any Hazardous Substance is on or near the Property, (B) the Property is in direct or indirect
violation of any Environmental Laws or (C) any condition on or near the Property might pose a
threat to the health, safety or welfare of humans and (iii) remove such Hazardous Substances and/or
cure such violations and/or remove such threats, as applicable, as required by law, promptly after
Borrower becomes aware of same, at Borrower’s sole expense. Any removal, remediation and/or cure
of any violation relating to Toxic Mold shall include, without limitation, all acts required to
clean and disinfect any portions of the Property affected by Toxic Mold and to eliminate the
source(s) of Toxic Mold in or on the Property, including providing any necessary moisture control
systems at the Property. Nothing herein shall prevent Borrower from recovering such expenses from
any other party that may be liable for such removal or cure. Notwithstanding the provisions of
this Section 5.7.1, Borrower has informed Lender that the tenants under the Property Leases utilize
in connection with their respective business operations at the Property commercial products
generally available to the public or routinely used in such businesses which contain varying
degrees of Hazardous Substances that are permitted by applicable Environmental laws. Lender agrees
that such use shall not constitute a breach of the covenants and agreements set forth herein,
provided such Hazardous Substances are used for their intended purposes in accordance with the
Property Leases and in compliance with all Environmental Laws.

          5.7.2 Environmental Monitoring.

          (a) Borrower shall give prompt written notice to Lender of (i) any proceeding or inquiry by
any party (including any Governmental Authority) of which Borrower has knowledge with respect to
the presence of any Hazardous Substance on, under, from or about the Property, (ii) all claims made
or to Borrower’s knowledge threatened by any third party (including any Governmental Authority)
against Borrower or the Property or any party occupying the Property relating to any loss or injury
resulting from any Hazardous Substance, and (iii) Borrower’s discovery of any occurrence or
condition on any real property adjoining or in the vicinity of the Property that is reasonably
likely to cause the Property to be subject to any investigation or cleanup pursuant to any
Environmental Law. Borrower shall permit Lender to join and participate in, as a party if it so
elects (and is permitted by law), any legal or administrative proceedings or other actions
initiated with respect to the Property in connection
with any Environmental Law or Hazardous Substance, and Borrower shall pay all reasonable
attorneys’ fees and disbursements incurred by Lender in connection therewith.

31

 

          (b) Upon Lender’s request, at any time and from time to time, but so long as no Default or
Event of Default exists only if Lender, in its good faith judgment determines that reasonable cause
exists for the performance of an environmental inspection or audit of the Property, Borrower shall
provide an inspection or audit of the Property prepared by a licensed hydrogeologist, licensed
environmental engineer or qualified environmental consulting firm approved by Lender assessing the
presence or absence of Hazardous Substances on, in or near the Property. The cost and expense of
such audit or inspection shall be paid by Borrower, and copies of the reports relating to such
inspection sand audits shall be furnished to both Borrower and Lender. Such inspections and audit
may include, soil bearings and ground water monitoring. If Borrower fails to provide any such
inspection or audit within thirty (30) days after such request, Lender may order same, and Borrower
hereby grants to Lender and its employees and agents access to the Property and a license to
undertake such inspection or audit.

          (c) If any environmental site assessment report prepared in connection with such inspection or
audit recommends that an operations and maintenance plan be implemented for any Hazardous
Substance, whether such Hazardous Substance existed prior to the ownership of the Property by
Borrower, or presently exists or is reasonably suspected of existing, Borrower shall cause such
operations and maintenance plan to be prepared and implemented at its expense upon request of
Lender. If any investigation, site monitoring, containment, cleanup, removal, restoration or other
work of any kind is required under an applicable Environmental Law (“Remedial Work”), Borrower
shall commence all such Remedial Work within thirty (30) days after written demand by Lender and
thereafter diligently prosecute to completion all such Remedial Work within such period of time as
may be required under applicable law). All Remedial Work shall be performed by licensed
contractors approved in advance by Lender and under the supervision of a consulting engineer
approved by Lender. All costs of such Remedial Work shall be paid by Borrower, including Lender’s
reasonable attorneys’ fees and disbursements incurred in connection with the monitoring or review
of such Remedial Work. If Borrower does not timely commence and diligently prosecute to completion
the Remedial Work, Lender may (but shall not be obligated to) cause such Remedial Work to be
performed at Borrower’s expense. Notwithstanding the foregoing, Borrower shall not be required to
commence such Remedial Work within the above specified time period: (x) if prevented from doing so
by any Governmental Authority, (y) if commencing such Remedial Work within such time period would
result in Borrower or such Remedial Work violating any Environmental Law, or (z) if Borrower, at
its expense and after prior written notice to Lender, is contesting by appropriate legal,
administrative or other proceedings, conducted in good faith and with due diligence, the need to
perform Remedial Work. Borrower shall have the right to contest the need to perform such Remedial
Work, provided that, (1) Borrower is permitted by the applicable Environmental Laws to delay
performance of the Remedial Work pending such proceedings, (2) neither the Property nor any part
thereof or interest therein will be sold, forfeited or lost if Borrower fails to promptly perform
the Remedial Work being contested, and if Borrower fails to prevail in contest, Borrower would
thereafter have the opportunity to perform such Remedial Work, (3) Lender would not, by virtue of
such permitted contest, be exposed to any risk of any civil liability for which Borrower has not
furnished additional security as provided in clause (4) below, or to any risk of criminal
liability, and neither the Property nor any interest therein would

32

 

be subject to the imposition of any Lien for which Borrower has not furnished additional
security as provided in clause (4) below, as a result of the failure to perform such Remedial Work
and (4) Borrower shall have furnished to Lender additional security in respect of the Remedial Work
being contested and the loss or damage that may result from Borrower’s failure to prevail in such
contest in such amount as may be reasonably requested by Lender but in no event less than one
hundred twenty-five percent (125%) of the cost of such Remedial Work as estimated by Lender and any
loss or damage that may result from Borrower’s failure to prevail in such contest.

          (d) Borrower shall not install or permit to be installed on the Property any underground
storage tank.

     5.8 Title to the Property; Liens. Borrower will warrant and defend the title to the
Property and the Pledged Collateral, and the validity and priority of all Liens granted or
otherwise given to Lender under the Loan Documents, subject only to Permitted Encumbrances, against
the claims of all Persons. Without Lender’s prior written consent, Borrower shall not create,
incur, assume, permit or suffer to exist any Lien on all or any portion of the Property or the
Pledged Collateral or any direct or indirect legal or beneficial ownership interest in Borrower,
except Liens in favor of Lender and Permitted Encumbrances, unless such Lien is bonded or
discharged within thirty (30) days after Borrower first receives notice of such Lien.

     5.9 Leases.

          5.9.1 Generally. Upon request, Borrower shall furnish Lender with executed copies of
all Leases then in effect. All renewals of Leases and all proposed leases shall provide for rental
rates and terms comparable to then existing local market rates and shall be arm’s length
transactions with bona fide, independent third-party tenants.

          5.9.2 Material Leases. Borrower shall not enter into a proposed Material Lease or a
proposed renewal, extension or modification of an existing Material Lease without the prior written
consent of Lender, which consent shall not, so long as no Event of Default is continuing, be
unreasonably withheld or delayed. Prior to seeking Lender’s consent to any Material Lease,
Borrower shall deliver to Lender a copy of such proposed Material Lease (a “Proposed Material
Lease”). Lender shall approve or disapprove each Proposed Material Lease or proposed renewal,
extension or modification of an existing Material Lease for which Lender’s approval is required
under this Agreement within ten (10) Business Days of the submission by Borrower to Lender of a
written request for such approval, accompanied by a final copy of the Proposed Material Lease or
proposed renewal, extension or modification of an existing Material Lease. If requested by
Borrower, Lender will grant conditional approvals of a Proposed Material Lease or a proposed
renewal, extension or modification of an existing Material Lease at any stage of the leasing
process, from initial “term sheet” through negotiated lease drafts, provided that Lender shall
retain the right to disapprove any such Proposed Material Lease or proposed renewal, extension or
modification of an existing Material Lease if subsequent to any preliminary approval material
changes are made to the terms previously approved by Lender, or additional material terms are added
that had not previously been considered and approved by Lender in connection with such Proposed
Material Lease or proposed renewal, extension or modification of an existing Material Lease.
Provided that no Event of Default is continuing, if Borrower provides Lender with a written request
for approval (which written request shall specifically

33

 

refer to this Section 5.9.2 and shall explicitly state that failure by Lender to approve or
disapprove within ten (10) Business Days will constitute a deemed approval) and Lender fails to
reject the request in writing delivered to Borrower within ten (10) Business Days after receipt by
Lender of the request, the Proposed Material Lease or proposed renewal, extension or modification
of an existing Material Lease shall be deemed approved by Lender, and Borrower shall be entitled to
enter into such Proposed Material Lease or proposed renewal, extension or modification of an
existing Material Lease.

          5.9.3 Minor Leases. Notwithstanding the provisions of Section 5.9.2 above, provided
that no Event of Default is continuing, renewals, amendments and modifications of existing Leases
and proposed leases shall not be subject to the prior approval of Lender provided (i) the proposed
lease would be a Minor Lease or the existing Lease, as amended or modified, or the renewal Lease is
a Minor Lease, (ii) the Lease shall be written substantially in accordance with the standard form
of Lease which shall have been approved by Lender, subject to any commercially reasonable changes
made in the course of negotiation with the applicable tenant, (iii) the Lease as amended or
modified or the renewal Lease or series of leases or proposed lease or series of leases: (a) shall
provide for net effective rental rates comparable to then existing local market rates, (b) shall
have an initial term (together with all renewal options) of not less than three (3) years or
greater than ten (10) years, (c) shall provide for automatic self-operative subordination to the
Mortgage and, at Lender’s option, (x) attornment to Lender and (y) if the Property is located in a
jurisdiction in which the applicable law provides for the termination of leases that are
subordinate to the Lien of the Mortgage, the unilateral right by Lender to subordinate the Lien of
the Mortgage to the Lease, and (d) shall not contain any option to purchase, any right of first
refusal to purchase, any right to terminate (except in the event of the destruction or condemnation
of substantially all of the Property), any requirement for a non-disturbance or recognition
agreement, or any other provision which might adversely affect the rights of Lender under the Loan
Documents in any material respect. Borrower shall deliver to Lender copies of all Leases which are
entered into pursuant to the preceding sentence together with Borrower’s certification that it has
satisfied all of the conditions of the preceding sentence within ten days after the execution of
the Lease. With respect to any Lease or proposed renewal, extension or modification of an existing
Lease that requires Lender’s consent under this Section 5.9.3, provided that no Event of Default is
continuing, if Borrower provides Lender with a written request for approval (which written request
shall specifically refer to this Section 5.9.3 and shall explicitly state that failure by Lender to
approve or disapprove within ten (10) Business Days will constitute a deemed approval) and Lender
fails to reject the request in writing delivered to Borrower within ten (10) Business Days after
receipt by Lender of the request, the proposed Lease or proposed renewal, extension or modification
of an existing Lease shall be deemed approved by Lender, and Borrower shall be entitled to enter
into such proposed Lease or proposed renewal, extension or modification of an existing Lease.

          5.9.4 Additional Covenants with respect to Leases. Borrower (i) shall observe and
perform the material obligations imposed upon the lessor under the Property Leases and shall not do
or permit anything to impair the value of the Property Leases as security for the Debt; (ii) shall
promptly send copies to Lender of all notices of default that Borrower shall send or receive under
any Property Lease; (iii) shall enforce, in accordance with commercially reasonable practices for
properties similar to the Property, the terms, covenants and conditions in the Leases to be
observed or performed by the lessees, short of termination thereof; (iv) shall not

34

 

collect any of the Rents more than one month in advance (other than security deposits); (v)
shall not execute any other assignment of lessor’s interest in the Property Leases or the Rents
(except as contemplated by the Loan Documents or the Bond Documents); (vi) shall not modify any
Lease in a manner inconsistent with the Loan Documents; (vii) shall not convey or transfer or
suffer or permit a conveyance or transfer of the Property so as to effect a merger of the estates
and rights of, or a termination or diminution of the obligations of, lessees under Leases; (viii)
shall not consent to any assignment of or subletting under any Property Lease unless required in
accordance with its terms without the prior consent of Lender, which, with respect to a subletting,
may not, so long as no Event of Default is continuing, be unreasonably withheld or delayed; and
(ix) shall not cancel or terminate any Property Lease or accept a surrender thereof without the
prior consent of Lender, which consent shall not, so long as no Event of Default is continuing, be
unreasonably withheld or delayed.

     5.10 Estoppel Statement. After request by Lender, Borrower shall within ten days
furnish Lender with a statement addressed to Lender, its successors and assigns, duly acknowledged
and certified, setting forth (i) the unpaid Principal, (ii) the Interest Rate, (iii) the date
installments of interest and/or Principal were last paid, (iv) any offsets or defenses to the
payment of the Debt, (v) that no Default or Event of Default exists under the Loan Documents and
(vi) that the Loan Documents are valid, legal and binding obligations of the Borrower and have not
been modified by the Borrower or if modified, giving particulars of such modification.

     5.11 Property Management.

          5.11.1 Management Agreement. With respect to all Property other than the T-Mobile
Property, Borrower shall manage such Property in its own name and for its own account, and shall
not enter into any agreement relating to the management or operation of such Property with any
affiliate of Borrower or any third party, without the express prior written consent of Lender. If
at any time Lender consents to the appointment of a manager for the Property, as a condition of
Lender’s consent, the management fees payable to such manager and the terms and provisions of such
Management Agreement shall be subordinate to the Loan Documents and to Lender’s rights in the
Property, and Borrower and such manager shall execute a Subordination of Management Agreement in
the form then being used by Lender. With respect to the existing T-Mobile Management Agreement and
to any future Management Agreement for any Property as may be approved by Lender as provided in
this Section 5.11.1, Borrower shall (i) cause the Property to be managed pursuant to the Management
Agreement; (ii) promptly perform and observe in all material respects all of the covenants required
to be performed and observed by it under the Management Agreement and do all things necessary to
preserve and to keep unimpaired in all material respects its rights thereunder; (iii) within five
(5) Business Days of obtaining knowledge thereof, notify Lender of any default that extends beyond
any applicable notice and/or cure period under the Management Agreement of which it is aware; (iv)
within five (5) Business Days after receipt deliver to Lender a copy of each financial statement,
business plan, capital expenditure plan, and property improvement plan and any other notice, report
and estimate received by Borrower under the Management Agreement; and (v) promptly enforce in a
commercially reasonable manner the performance and observance of all of the covenants required to
be performed and observed by Manager under the Management Agreement. Further, with respect to the
existing T-Mobile Management Agreement and to any future Management Agreement for any Property as
may be approved by Lender as provided in this Section 5.11.1,

35

 

without Lender’s prior written consent, Borrower shall not (a) surrender, terminate, cancel,
extend or renew the Management Agreement (except for automatic extensions or renewals of T-Mobile
Management Agreement as provided therein) or otherwise replace the Manager or enter into any other
management agreement (except pursuant to Section 5.11.2); (b) reduce or consent to the reduction of
the term of the Management Agreement; (c) increase or consent to the increase of the amount of any
charges under the Management Agreement; (d) otherwise modify, change, supplement, alter or amend in
any material respect, or waive or release any of its rights and remedies under, the Management
Agreement; or (e) suffer or permit the occurrence and continuance of a default beyond any
applicable cure period under the Management Agreement (or any successor management agreement) if
such default permits the Manager to terminate the Management Agreement (or such successor
management agreement).

          5.11.2 Termination of Manager. If (i) an Event of Default shall be continuing, or
(ii) with respect to the T-Mobile Management Agreement presently in effect or any future Management
Agreement that may be entered into pursuant to Section 5.11.1 with respect to any Property, if
Manager is in default under the Management Agreement beyond the expiration of any applicable notice
and/or cure period, Borrower shall, at the request of Lender, terminate the Management Agreement
and replace Manager with a replacement manager, or if no Management Agreement is then in effect, at
Borrower’s and Owner’s expense install a new manager for the Property, which replacement manager,
or new manager as the case may be, shall be acceptable to Lender in Lender’s discretion and the
applicable Rating Agencies on terms and conditions satisfactory to Lender and the applicable Rating
Agencies Borrower’s failure to appoint an acceptable manager within thirty (30) days after Lender’s
request of Borrower to terminate the Management Agreement shall constitute an immediate Event of
Default. Provided that any request for approval by lender of an acceptable manager shall be deemed
approved by Lender if Lender fails to respond within five (5) Business Days after receipt of
written request therefor; provided further that each rejection by Lender of a proposed acceptable
manager shall extend the thirty day period by five (5) days. Borrower may from time to time
appoint a successor manager to manage the Property, which successor manager and Management
Agreement shall be approved in writing by Lender in Lender’s discretion and the applicable Rating
Agencies.

     5.12 Special Purpose Bankruptcy Remote Entity. Borrower shall at all times be a
Special Purpose Bankruptcy Remote Entity. A “Special Purpose Bankruptcy Remote Entity” shall have
the meaning set forth on Schedule 4 hereto.

     5.13 Intentionally Deleted.

     5.14 Change In Business or Operation of Property. Borrower shall not purchase or own
any real property other than the Property and shall not enter into any line of business other than
the ownership and operation of the Property, or make any material change in the scope or nature of
its business objectives, purposes or operations, or undertake or participate in activities other
than the continuance of its present business or otherwise cease to operate the Property as an
Industrial/Office property or terminate such business for any reason whatsoever (other than
temporary cessation in connection with renovations to the Property).

36

 

     5.15 Certain Prohibited Actions. Borrower shall not directly or indirectly do any of
the following: (i) change its principal place of business or chief executive office without first
giving Lender thirty (30) days’ prior notice; (ii) cancel or otherwise forgive or release any claim
or debt owed to Borrower by any Person, except for adequate consideration and in the ordinary
course of Borrower’s business in its reasonable judgment; (iii) Transfer any License required for
the operation of the Property; or (iv) maintain, sponsor, contribute to or become obligated to
contribute to, or suffer or permit any ERISA Affiliate of Borrower to, maintain, sponsor,
contribute to or become obligated to contribute to, any Plan or any Welfare Plan, or permit the
assets of Borrower to become “plan assets,” whether by operation of law or under regulations
promulgated under ERISA, unless written notice of such action is provided to Lender within a
reasonable period of time after Borrower becomes aware of such action.

     5.16 Prohibited Transfers.

     (a) Borrower shall not directly or indirectly make, suffer or permit the occurrence of any
Transfer other than a Permitted Transfer.

     (b) Notwithstanding the foregoing, Lender shall not unreasonably withhold its consent to a
sale of the Property in its entirety (a “Special Transfer”) to a Special Purpose Bankruptcy Remote
Entity with organizational documents containing provisions satisfying the Lender’s then-current
requirements of a Special Purpose Bankruptcy Remote Entity and otherwise acceptable to Lender (a
“Buyer”), provided that

          (i) No Default or Event of Default is then continuing;

          (ii) Borrower gives Lender written notice of the terms of such prospective Special Transfer
not less than forty-five (45) days before the date on which such sale is scheduled to close,
accompanied by all information concerning the proposed Buyer as Lender would require in evaluating
an initial extension of credit to a borrower and such reasonable non-refundable application fee as
shall be required by Lender. Lender shall have the right to approve or disapprove the proposed
Buyer in its reasonable discretion (it being acknowledged that Lender may, as a condition to
approving any proposed Buyer, require a Rating Comfort Letter from each of the Rating Agencies);

          (iii) Borrower pays Lender, concurrently with the closing of such Special Transfer, a non
refundable assumption fee in an amount equal to all reasonable out-of-pocket costs and expenses,
including, without limitation, reasonable attorneys’ fees and disbursements, incurred by Lender in
connection with the Special Transfer plus an amount equal to one percent (1.0%) of the then
outstanding Principal. No one percent (1%) payment is payable in the event of a Controlling
Interest Transfer;

          (iv) Buyer assumes all of the obligations of Borrower under this Agreement, the Note and the
other Loan Documents and, prior to or concurrently with the closing of such Special Transfer, Buyer
executes, without any cost or expense to Lender, such documents and agreements as Lender shall
reasonably require to evidence and effectuate said assumption and delivers such legal opinions as
Lender may reasonably require;

37

 

          (v) Borrower and Buyer execute and cause to be filed in such public records as Lender
reasonably deems appropriate, without any cost or expense to Lender, new financing statements or
financing statement amendments and any additional documents reasonably requested by Lender;

          (vi) Borrower causes to be delivered to Lender, without any cost or expense to Lender, such
endorsements to Lender’s title insurance policy, property and liability insurance endorsements or
certificates and other similar materials as Lender may reasonably deem necessary at the time of the
Special Transfer, all in form and substance satisfactory to Lender, including, without limitation,
an endorsement or endorsements to Lender’s title insurance policy insuring the lien of the
Mortgage, extending the effective date of such policy to the date of execution and delivery (or, if
later, of recording) of the assumption agreement referenced above in clause (iv) of this Section,
with no additional exceptions added to such policy except (i) Liens created by the assignment and
assumption of the Loan Documents, the Bond Documents and the Property Leases, (ii) Liens, if any,
for Taxes or other charges not yet due and payable as of the date of any assignment and assumption,
(iii) any other matter which does not affect in any material respect the Lien of the Mortgage
insured pursuant to Lender’s title insurance policy or the operation and use of the Property as
determined by Lender in its sole discretion, and insuring that fee simple title to the Property is
vested in Buyer;

          (vii) Borrower executes and delivers to Lender, without any cost or expense to Lender, a
release of Lender, its officers, directors, employees and agents, from all claims and liability
relating to the transactions evidenced by the Loan Documents through and including the date of the
closing of the Special Transfer, which agreement shall be in form and substance reasonably
satisfactory to Lender and shall be binding upon Buyer;

          (viii) Such Special Transfer is not construed so as to relieve Borrower of any personal
liability under the Note or any of the other Loan Documents for any acts or events occurring or
obligations arising prior to or simultaneously with the closing of such Special Transfer and
Borrower executes, without any cost or expense to Lender, such documents and agreements as Lender
shall reasonably require to evidence and effectuate the ratification of said personal liability.
Borrower shall be released from and relieved of any personal liability under the Note or any of the
other Loan Documents for any acts or events occurring or obligations arising after the closing of
such Special Transfer which are not caused by or arising out of any acts or events occurring or
obligations arising prior to or simultaneously with the closing of such Special Transfer;

          (ix) Such Special Transfer is not construed so as to relieve any Guarantor of its obligations
under any Loan Document, and a direct or indirect member, partner or shareholder of Buyer or other
Person affiliated with Buyer approved by Lender in its sole discretion (a “Successor Guarantor”)
assumes the obligations of such Guarantor and executes such documents as may be required by Lender
to evidence such assumption. Guarantor shall be released from and relieved of any of its
obligations under any indemnity or guaranty executed in connection with the Loan for any acts or
events occurring or obligations arising after the closing of such Special Transfer which are not
caused by or arising out of any acts or events occurring or obligations arising prior to or
simultaneously with the closing of such Special Transfer;

38

 

          (x) Buyer has furnished to Lender all appropriate documents and instruments evidencing Buyer’s
capacity and good standing, and the authority of the signers to execute the assumption of the Loan
and the Loan Documents, which documents and instruments shall include certified copies of all
documents and instruments relating to the organization and formation of Buyer and of the entities,
if any, which are direct or indirect members, partners or shareholders of Buyer, all of which shall
be reasonably satisfactory to Lender;

          (xi) Buyer shall assume the obligations of Borrower under any management agreements pertaining
to the Property, or shall cause any new manager and management agreement to satisfy the
requirements of Section 5.11 hereof, as applicable;

          (xii) Buyer shall furnish an opinion of counsel satisfactory to Lender that the acquisition of
the Property and the assumption of the Loan and the Loan Documents by Buyer and, to the extent
applicable, Successor Guarantor, was validly authorized, and duly executed and delivered, and
constitutes the legal, valid and binding obligations of Buyer and Successor Guarantor, enforceable
against each of them in accordance with their respective terms, and with respect to such other
matters as Lender may reasonably require; and

          (xiii) Buyer shall provide Lender with a fully executed copy of (1) a deed covering the
Property, (2) a bill of sale covering the personal property constituting a part of the Property and
(3) an assignment and assumption agreement in respect of the Leases, in form and substance
reasonably satisfactory to Lender.

     (c) Further notwithstanding the provisions of this Section 5.16, the definition of Permitted
Transfer in Section 1.1.2, or anything inconsistent or to the contrary contained in this Agreement
or any other Loan Document, the transfer of any direct or indirect ownership interests in Guarantor
(traded on the public markets or otherwise) that results in the transferee (together with its
Affiliates) holding an indirect interest in Borrower or in Borrower Representative in an amount
which exceeds 49% and occurs substantially contemporaneously with (i) the transfer of a majority of
shares held by the then current officers and directors of Guarantor, and (ii) a change in a
majority of the directors of Guarantor, shall be subject to the prior written consent of Lender in
its sole discretion. Borrower shall give Lender written notice not less than sixty (60) days
before the date on which such transfer is scheduled to close, accompanied by all information
relating to the transfer and the transferee as Lender would reasonably require in evaluating an
initial extension of credit to a borrower (it being acknowledged that Lender may, as a condition to
its approval, require a Rating Comfort Letter from each of the Rating Agencies). If such transfer
is disapproved by Lender prior to the Start-up Date, Borrower shall have the right to prepay the
entire outstanding balance of the Loan in full together with a Yield Maintenance Premium. If such
transfer is disapproved by Lender after the Start-up Date, Borrower shall have the right to prepay
the entire outstanding balance of the Loan in full together with a Yield Maintenance Premium, or to
cause a Full Defeasance of the Loan pursuant Section 2.3.3 above. Failure of Lender to consent in
writing to Borrower’s written notice within forty-five (45) days after receipt of such notice shall
be deemed a disapproval by Lender.

39

 

     5.17 Expenses. Borrower shall reimburse Lender upon receipt of notice for all
reasonable third party out-of-pocket costs and expenses (including reasonable attorneys’ fees and
disbursements) incurred by Lender in connection with the Loan, including (i) the preparation,
negotiation, execution and delivery of the Loan Documents and the consummation of the
transactions contemplated thereby and all the costs of furnishing all opinions by counsel for
Borrower; (ii) Borrower’s and Lender’s ongoing performance under and compliance with the Loan
Documents, including confirming compliance with environmental and insurance requirements; (iii) the
negotiation, preparation, execution, delivery and administration of any consents, amendments,
waivers or other modifications of or under any Loan Document and any other documents or matters
requested by Lender or Borrower; (iv) filing and recording of any Loan Documents; (v) title
insurance, surveys, inspections and appraisals; (vi) the creation, perfection or protection of
Lender’s Liens on the Property and the Cash Management Accounts (including fees and expenses for
title and lien searches, intangibles taxes, personal property taxes, Mortgage, recording taxes, due
diligence expenses, travel expenses, accounting firm fees, costs of appraisals, environmental
reports, surveys and engineering reports); (vii) enforcing or preserving any rights in response to
third party claims or the prosecuting or defending of any action or proceeding or other litigation,
in each case against, under or affecting Borrower, the Loan Documents, the Property, or any other
security given for the Loan; (viii) fees charged by Rating Agencies in connection with the Loan or
any modification thereof; (ix) enforcing any obligations of or collecting any payments due from
Borrower under any Loan Document or with respect to the Property or in connection with any
refinancing or restructuring of the Loan in the nature of a “work-out,” or any insolvency or
bankruptcy proceedings and (x) the fees and expenses of any special servicer retained in respect of
the Loan. Any reasonable third party out-of-pocket costs and expenses due and payable to Lender
hereunder which are not paid by Borrower within ten (10) Business Days after demand may be paid
from any amounts in the Deposit Account, with notice thereof to Borrower. The obligations and
liabilities of Borrower under this Section 5.17 shall survive the Term and the exercise by Lender
of any of its rights or remedies under the Loan Documents, including the acquisition of the
Property by foreclosure or a conveyance in lieu of foreclosure.

     5.18 Indemnity. Borrower shall defend, indemnify and hold harmless Lender and each of
its Affiliates and their respective successors and assigns, including the directors, officers,
partners, members, shareholders, participants, employees, professionals and agents of any of the
foregoing (including any Servicer) and each other Person, if any, who Controls Lender, its
Affiliates or any of the foregoing (each, an “Indemnified Party”), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs,
expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and
disbursements of counsel for an Indemnified Party in connection with any investigative,
administrative or judicial proceeding commenced or threatened, whether or not Lender shall be
designated a party thereto, court costs and costs of appeal at all appellate levels, investigation
and laboratory fees, consultant fees and litigation expenses), that may be imposed on, incurred by,
or asserted against any Indemnified Party (collectively, the “Indemnified Liabilities”) in any
manner, relating to or arising out of or by reason of the Loan, including: (i) any breach by
Borrower of its obligations under, or any misrepresentation contained in, any Loan Document; (ii)
the use or intended use of the proceeds of the Loan; (iii) any information provided by or on behalf
of Borrower, or contained in any documentation approved by Borrower; (iv) ownership of the Mortgage
or any of the other Loan Documents, or the Property or any interest therein, or receipt of any
Rents; (v) any accident, injury to or death of persons or loss of or damage to property occurring
in, on or about the Property or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (vi) any use, nonuse or condition in, on or

40

 

about the Property or on adjoining sidewalks, curbs, adjacent property or adjacent parking
areas, streets or ways; (vii) performance of any labor or services or the furnishing of any
materials or other property in respect of the Property; (viii) the presence, disposal, escape,
seepage, leakage, spillage, discharge, emission, release, or threatened release of any Hazardous
Substance on, from or affecting the Property; (ix) any personal injury (including wrongful death)
or property damage (real or personal) arising out of or related to such Hazardous Substance; (x)
any lawsuit brought or threatened, settlement reached, or government order relating to such
Hazardous Substance; (xi) any violation of the Environmental Laws which is based upon or in any way
related to such Hazardous Substance, including the costs and expenses of any Remedial Work; (xii)
any failure of the Property to comply in any material respect with any Legal Requirement; (xiii)
any claim by brokers, finders or similar persons claiming to be entitled to a commission in
connection with any Lease or other transaction involving the Property or any part thereof, or any
liability asserted against Lender with respect thereto; and (xiv) the claims of any lessee of any
portion of the Property or any Person acting through or under any lessee or otherwise arising under
or as a consequence of any Lease; provided, however, that Borrower shall not have any obligation to
any Indemnified Party hereunder if and to the limited extent that (A) it is finally judicially
determined that such Indemnified Liabilities arose solely from the gross negligence, illegal acts,
fraud or willful misconduct of such Indemnified Party, or (B) with respect to items (v) and (vi)
only above, and only as it relates to adjacent property, adjacent parking areas, or streets or
ways, if it is conclusively proven in a final non-appealable judgment to not be the fault of
Borrower, its Affiliates, or its agents or invitees, or the tenant under the applicable Property
Lease, or any agents or invitees of such tenant, then the costs and expenses (including attorneys’
fees) incurred by Lender in connection with such proceeding shall be excluded from the Indemnified
Liabilities. Any amounts payable to any Indemnified Party by reason of the application of this
paragraph shall be payable within ten (10) Business Days after written demand and shall bear
interest at the Default Rate from the date loss or damage is sustained by any Indemnified Party
until paid. The obligations and liabilities of Borrower under this Section 5.18 shall survive the
Term and the exercise by Lender of any of its rights or remedies under the Loan Documents,
including the acquisition of the Property by foreclosure or a conveyance in lieu of foreclosure.

     5.19 Embargoed Person. (a) At all times throughout the term of the Loan, including
after giving effect to any Transfers permitted pursuant to the Loan Documents, (i) none of the
funds or assets of Borrower, Borrower Representative or Guarantor, whether or not used to repay the
Loan, shall constitute property of, or shall be beneficially owned directly or, to Borrower’s
knowledge, indirectly (other than holders of publicly traded shares or other securities of
Guarantor who are not officers of directors of Guarantor), by any person, entity or government
subject to sanctions or trade restrictions under United States law (“Embargoed Person” or
“Embargoed Persons”) that are identified on (A) the “List of Specially Designated Nationals and
Blocked Persons” maintained by the Office of Foreign Assets Control (“OFAC”), U.S. Department of
the Treasury’s FINCEN list, and/or to Borrower’s knowledge, as of the date thereof, by Borrower, on
any other similar list maintained by OFAC or FINCEN pursuant to any authorizing statute including,
but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The
Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Order or regulation
promulgated thereunder, with the result that the investment in Borrower, Borrower Representative or
any Guarantor, as applicable (whether directly or indirectly), is prohibited by law, or the Loan
made by Lender would be in violation of law, or (B) Executive Order 13224 (September 23, 2001)
issued by the President of the United States

41

 

(“Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit,
Threaten to Commit, or Support Terrorism”), any related enabling legislation or any other similar
Executive Orders, and (ii) no Embargoed Person shall have any direct interest or, to Borrower’s
knowledge, indirect interest, of any nature whatsoever in Borrower, Borrower Representative or any
Guarantor, as applicable, with the result that the investment in Borrower, Borrower Representative
or any Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan
is in violation of law.

          (b) At all times throughout the term of the Loan, none of any of the Borrower, Borrower
Representative or Guarantor, nor any Person controlling, controlled by or under common control with
any of Borrower, Borrower Representative or Guarantor, nor any Person having a beneficial interest
in, or for whom any of the Borrower, Borrower Representative or Guarantor is acting as agent or
nominee in connection with the investment, is (a) a country, territory, person or entity named on
an OFAC or FINCEN list, or is a Person that resides in or has a place of business in a country or
territory named on such lists; (b) a Person resident in, or organized or chartered under the laws
of a jurisdiction identified as non-cooperative by the Financial Action Task Force (“FATF”); or (c)
a Person whose funds originate from or will be routed through , an account maintained at a foreign
shell bank or “offshore bank.”

          (c) None of the Borrower, Borrower Representative or Guarantor, nor any Person controlling,
controlled by or under common control with Borrower, Borrower Representative or Guarantor is a
“senior political figure” or an “immediate family” member or “close associate” (as all such terms
are defined below) of a senior foreign political figure within the meaning of the USA PATRIOT Act
(i.e., the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56, as may be amended). For the
purposes of this subsection (c), (i) “senior foreign political figure” means a senior official in
the executive, legislative, administrative, military or judicial branches of a foreign government
(whether elected or not), a senior official of a major foreign political party or a senior
executive of a foreign government-owned corporation, and such term also includes any corporation,
business or other entity that has been formed by, or for the benefit of, a senior political figure,
(ii) “immediate family” of a senior foreign political figure includes the figure’s parents,
siblings, spouse, children and in-laws, and (iii) “close associate” of a senior foreign political
figure means a person who is widely and publicly known to maintain an unusually close relationship
with the senior foreign political figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the senior foreign
political figure.

     5.20 Anti-Money Laundering. At all times throughout the term of the Loan, including
after giving effect to any Transfers permitted pursuant to the Loan Documents, none of the funds of
Borrower, Borrower Representative or any Guarantor, as applicable, that are used to consummate this
transaction or to repay the Loan shall be derived from or are the proceeds of any unlawful
activity, with the result that the investment in Borrower, Borrower Representative or any
Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in
violation of law or may cause any of the Mortgaged Property to be subject to forfeiture or seizure.
Borrower has ascertained the identity of all persons and entities who have provided funds to
capitalize Borrower and has conducted verification procedures which are sufficient to establish the
identity and source of such funds.

42

 

     5.21 ERISA. At all times throughout the Term, upon the request of Lender or any of
Lender’s successors, assigns or participants in the Loan, the management of Borrower shall make
itself available to consult with Lender or any of Lender’s successors, assigns or participants on
significant business issues relating to the operation of the Property quarterly either personally
or by telephone at mutually agreeable times; provided, however, that such consultation need not
result in any change in Borrower’s course of action, subject to Section 8.1. The aforementioned
consultation rights are intended to satisfy the requirement of management rights for purposes of
the U.S. Department of Labor “plan assets” regulation, 29 C.F.R. Section 2510.3-101.

     5.22 Ground Lease. Borrower shall or shall cause the T-Mobile Borrower to: (i) pay
all rents and other sums required to be paid by the T-Mobile Borrower as tenant under and pursuant
to the provisions of the Ground Lease, the Indenture, the Direct Pay Agreement, and any other Bond
Documents, as and when such rent or other sums are payable, (ii) diligently perform and observe all
of the terms, covenants and conditions of the Ground Lease on the part of the T-Mobile Borrower
thereunder to be performed and observed, and (iii) promptly notify Lender of the giving of any
notice pursuant to the Ground Lease, the Indenture, the Direct Pay Agreement, or any other Bond
Document of any default by the T-Mobile Borrower or any other party with respect thereto. The
T-Mobile Borrower shall not, without the prior written consent of Lender, surrender the leasehold
estate created by the Ground Lease or terminate or cancel the Ground Lease or modify, change,
supplement, alter or amend the Ground Lease, in any respect, either orally or in writing, and the
T-Mobile Borrower hereby assigns to Lender, as further security for the payment of the Debt and for
the performance and observance of the terms, covenants and conditions of this Agreement and the
other Loan Documents, all of the rights, privileges and prerogatives of the T-Mobile Borrower, as
tenant under the Ground Lease, to surrender the leasehold estate created by the Ground Lease or to
terminate, cancel, modify, change, supplement, alter or amend the Ground Lease, and any such
surrender of the leasehold estate created by the Ground Lease or termination, cancellation,
modification, change, supplement, alteration or amendment of the Ground Lease without the prior
written consent of Lender shall be void and of no force and effect. If the T-Mobile Borrower shall
default in the performance or observance of any term, covenant or condition of the Ground Lease on
the part of the T-Mobile Borrower, as tenant thereunder, to be performed or observed, then, without
limiting the generality of the other provisions of this Agreement, and without waiving or releasing
Borrower from any of its obligations hereunder, Lender shall have the right, but shall be under no
obligation, to pay any sums and to perform any act or take any action as may be appropriate to
cause all of the terms, covenants and conditions of the Ground Lease on the part of tenant
thereunder, to the end that the rights of the T-Mobile Borrower in, to and under the Ground Lease
shall be kept unimpaired and free from default, even though the existence of such event of default
or the nature thereof be questioned or denied by the T-Mobile Borrower or any other Borrower or by
any party on behalf of the T-Mobile Borrower or any other Borrower. If Lender shall make any
payment or perform any act or take action in accordance with the preceding sentence, Lender will
notify Borrower not less than five (5) days prior to the making of any such payment, the
performance of any such act, or the taking of any such action. In any such event, subject to the
rights of tenants, subtenants and other occupants under the Leases, Lender and any person
designated by Lender shall have, and are hereby granted, the right to enter upon the Property at
any time and from time to time for the purpose of taking any such action. Lender may pay and
expend such sums of money as Lender reasonably deems necessary

43

 

for any such purpose and upon so doing shall be subrogated to any and all rights of the
landlord under the Ground Lease. The T-Mobile Borrower hereby agrees to pay to Lender within five
(5) Business Day of request therefor, all such sums so paid and expended by Lender, together with
interest thereon from the date of such payment at the Default Rate (as defined in the Note). All
sums so paid and expended by Lender and the interest thereon shall be secured by this Mortgage. If
the landlord under the Ground Lease shall deliver to Lender a copy of any notice of default sent by
said landlord to Mortgagor, as tenant under the Ground Lease, such notice shall constitute full
protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in
reliance thereon. Unless T-Mobile Borrower shall exercise its option to purchase the T-Mobile
Property pursuant to the Ground Lease, T-Mobile Borrower shall exercise each individual option, if
any, to extend or renew the term of the Ground Lease upon demand by Lender made at any time within
six (6) months of the last day upon which any such option may be exercised, and T-Mobile Borrower
hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise any such option in
the name of and upon behalf of T-Mobile Borrower, which power of attorney shall be irrevocable and
shall be deemed to be coupled with an interest. T-Mobile Borrower will not subordinate or consent
to the subordination of the Ground Lease to any mortgage, security deed, lease or other interest on
or in the landlord’s interest in all or any part of the T-Mobile Property, unless, in each such
case, the written consent of Lender shall have been first had and obtained.

6. NOTICES AND REPORTING

     6.1 Notices. All notices, consents, approvals and requests required or permitted
hereunder or under any other Loan Document (a “Notice”) shall be given in writing and shall be
effective for all purposes if either hand delivered with receipt acknowledged, or by a nationally
recognized overnight delivery service (such as Federal Express), or by certified or registered
United States mail, return receipt requested, postage prepaid, or by facsimile and confirmed by
facsimile answer back, in each case addressed as follows (or to such other address or Person as a
party shall designate from time to time by Notice to the other party): If to Lender: IXIS Real
Estate Capital Inc., 9 West 57th Street, 36th Floor, New York, New York 10019; Attention: Real
Estate Administration (Gary DiGiuseppe), Telecopier: (212) 891-6851 with copies to: Brownstein
Hyatt & Farber, PC, 410 Seventeenth Street, 22nd Floor, Denver, Colorado 80202,
Attention: Ana Lazo Tenzer, Esq., Telecopier: (303) 223-0982; if to Borrower: c/o Gladstone
Commercial Corporation, 1521 Westbranch Drive, Suite 200, McLean, Virginia 22102, Attention: Gary
Gerson, Telecopier: (703) 287-5901, with a copy to: Dickstein Shapiro Morin & Oshinsky LLP,
Attention: James D. Kelly, Telecopier: (202) 887-0689. A Notice shall be deemed to have been
given: (a) in the case of hand delivery, at the time of delivery; (b) in the case of registered or
certified mail, when delivered or the first attempted delivery on a Business Day; (c) in the case
of overnight delivery, upon the first attempted delivery on a Business Day; or (d) in the case of
facsimile transmission, when sent and electronically confirmed.

     6.2 Borrower Notices and Deliveries. Borrower shall (a) give prompt written notice to
Lender of: (i) any litigation, governmental proceedings or claims or investigations pending or
threatened against Borrower or Borrower Representative which might materially adversely affect
Borrower’s or Borrower Representative’s condition (financial or otherwise) or business or the
Property; (ii) any material adverse change in Borrower’s or Borrower Representative’s condition,
financial or otherwise, or of the occurrence of any Default or Event of Default of which

44

 

Borrower has knowledge; and (b) furnish and provide to Lender: (i) any Securities and Exchange
Commission or other public filings, if any, of Borrower, Borrower Representative, Manager, or any
Affiliate of any of the foregoing within two (2) Business Days of such filing and (ii) all
instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and
specifications, appraisals, title and other insurance reports and agreements, reasonably requested,
from time to time, by Lender. In addition, after request by Lender (but no more frequently than
twice in any year), Borrower shall furnish to Lender within thirty (30) days, tenant estoppel
certificates addressed to Lender, its successors and assigns from each tenant at the Property in
form and substance reasonably satisfactory to Lender.

     6.3 Financial Reporting.

          6.3.1 Bookkeeping. Borrower shall keep on a calendar year basis, in accordance with
GAAP or any other accounting method as determined by Borrower and acceptable to Lender in its
reasonable discretion, consistently applied, proper and accurate books, records and accounts
reflecting all of the financial affairs of Borrower and all items of income and expense and any
services, Equipment or furnishings provided in connection with the operation of the Property,
whether such income or expense is realized by Borrower, Manager or any Affiliate of Borrower.
Lender shall have the right from time to time during normal business hours upon reasonable notice
to examine such books, records and accounts at the office of Borrower or other Person maintaining
them, and to make such copies or extracts thereof as Lender shall reasonably require. After an
Event of Default has occurred and is continuing, Borrower shall pay any reasonable third party
out-of-pocket costs incurred by Lender to examine such books, records and accounts, as Lender shall
determine to be necessary or appropriate in the protection of Lender’s interest.

          6.3.2 Annual Reports. Borrower shall furnish to Lender annually within ninety (90)
days after each calendar year, a complete copy of Guarantor’s consolidated (which includes
Borrower) annual financial statements certified by an independent certified public accountant
(accompanied by an unqualified opinion from such accounting firm or independent certified public
accountant) in form and content reasonably acceptable to Lender, prepared in accordance with GAAP
or any other accounting method determined by Borrower and acceptable to Lender, consistently
applied, and containing balance sheets and statements of profit and loss. Each such statement (x)
shall be in form and substance reasonably satisfactory to Lender, (y) shall set forth the financial
condition and the income and expenses for the property for the immediately preceding calendar year,
including statements of annual net Operating Income, and (z) shall be accompanied by an Officer’s
Certificate certifying (1) that such statement is true, correct, complete and accurate in all
material respects and presents fairly the financial condition of the Property and has been prepared
in accordance with GAAP or any other accounting method as determined by Borrower and approved by
Lender consistently applied and (2) whether there exists a Default or Event of Default, and if so,
the nature thereof, the period of time it has existed and the action then being taken to remedy it.

          6.3.3 Quarterly Reports. Borrower shall furnish to Lender within thirty (30) days
after the end of each calendar quarter, as applicable, the following items: (i) year-to-date
operating statements, noting Net Operating Income and other information necessary and sufficient
under GAAP or any other accounting method of accounting as determined by

45

 

Borrower and reasonably approved by Lender, consistently applied to fairly represent the
financial position and results of operation of the Property during such calendar quarter, all in
form satisfactory to Lender; (ii) a balance sheet for such calendar quarter; (iii) quarterly, with
respect to the T-Mobile Property, a comparison of the budgeted income and expenses and the actual
income and expenses for each quarter and year-to-date for the Property; (iv) a statement of the
actual Capital Expenses made by Borrower during each calendar quarter as of the last day of such
calendar quarter; (v) a statement that Borrower has not incurred any indebtedness other than
indebtedness permitted hereunder, (vi) [intentionally deleted]; and (vii) rent rolls identifying
the leased premises, names of all tenants, units leased, monthly rental and all other charges
payable under each Lease, date to which paid, term of Lease, date of occupancy, and date of
expiration. Each such statement shall be accompanied by an Officer’s Certificate certifying (1)
that such items are true, correct, accurate, and complete in all material respects and fairly
present the financial condition and results of the operations of Borrower and the Property in
accordance with GAAP or any other accounting method as determined by Borrower and approved by
Lender, consistently applied (subject to year-end adjustments) and (2) whether there exists an
Event of Default, and if so, the nature thereof, the period of time it has existed and the action
then being taken to remedy it. Notwithstanding the foregoing, Borrower shall notify Lender
promptly in writing of any material adverse change in the financial position of the Borrower or the
Property occurring during any calendar quarter.

          6.3.4 Other Reports. Borrower shall furnish to Lender, within ten (10) Business Days
after request, such further detailed information with respect to the operation of the Property and
the financial affairs of Borrower, or Borrower Representative as may be reasonably requested by
Lender or any applicable Rating Agency.

          6.3.5 Annual Budget. Borrower shall prepare and submit (or shall cause Manager to
prepare and submit) to Lender within thirty (30) days after a Cash Management Period and by
December 15th of each year thereafter during the Term for approval by Lender, which approval shall
not be unreasonably withheld or delayed, a proposed pro forma budget for the Property for the
succeeding calendar year (the “Annual Budget”), and, promptly after preparation thereof, any
revisions to such Annual Budget. Lender’s failure to approve or disapprove any Annual Budget or
revision within thirty (30) days after Lender’s receipt thereof shall be deemed to constitute
Lender’s approval thereof. The Annual Budget shall consist of (i) an operating expense budget (the
“Operating Budget”) showing, on a month-by-month basis, in reasonable detail, each line item of the
Borrower’s anticipated operating income and operating expenses (on a cash and accrual basis),
including amounts required to establish, maintain and/or increase any monthly payments required
hereunder, and (ii) a Capital Expense budget (the “Capital Budget”) showing, on a month-by-month
basis, in reasonable detail, each line item of anticipated Capital Expenses. Lender acknowledges
that as of the date hereof, an Annual Budget is prepared only with respect to the T-Mobile Property
and not the Converting Property or the Spinners Properties, and that no such Annual Budgets or
other budgets are anticipated with regard to the Converting Property or the Spinners Properties,
unless and until a Cash Management Period occurs and is continuing under this Agreement, and then
only to the extent required by Lender pursuant hereto.

46

 

          6.3.6 Breach. If Borrower fails to provide to Lender or its designee any of the
financial statements, certificates, reports or information (the “Required Records”) required by
this Section 6.3.6 within thirty (30) days after the date upon which such Required Record is
due, Borrower shall pay to Lender, at Lender’s option and in its discretion, an amount equal to
$500 for each Required Record that is not delivered; provided Lender has given Borrower at least
fifteen (15) days prior notice of such failure. In addition, thirty (30) days after Borrower’s
failure to deliver any Required Records, Lender shall have the option, upon fifteen (15) days
notice to Borrower to gain access to Borrower’s books and records and prepare or have prepared at
Borrower’s expense, any Required Records not delivered by Borrower.

7. INSURANCE; CASUALTY; AND CONDEMNATION

     7.1 Insurance.

          7.1.1 Coverage. Borrower, at its sole cost, for the mutual benefit of Borrower and
Lender, shall obtain and maintain, or shall cause the tenants under the Property Leases to obtain
and maintain, during the Term the following policies of insurance:

          (a) Property insurance insuring against loss or damage customarily included under so called
“all risk” or “special form” policies including fire, lightning, flood, earthquake, vandalism, and
malicious mischief, boiler and machinery and coverage for damage or destruction caused by “War,” if
available, and the “certified” (as defined in the Terrorism Risk Insurance Act of 2002) acts of
terrorists (or such policies shall have no exclusion from coverage with respect thereto) and such
other insurable hazards as, under good insurance practices, from time to time are insured against
for other property and buildings similar to the Property in nature, use, location, height, and type
of construction. Such insurance policy shall also insure costs of demolition and increased cost of
construction (which insurance for demolition and increased cost of construction may contain a
sub-limit satisfactory to Lender). Each such insurance policy shall (i) be in an amount equal to
the greater of (A) one hundred percent (100%) of the then replacement cost of the Improvements
without deduction for physical depreciation, and (B) such amount as is necessary so that the
insurer would not deem Borrower a co-insurer under such policies, (ii) have deductibles no greater
than the lesser of $100,000 or five percent (5%) of Net Operating Income per occurrence, (iii) be
paid annually in advance and (iv) contain an agreed amount replacement cost endorsement with a
waiver of depreciation, and shall cover, without limitation, all tenant improvements and
betterments that Borrower is required to insure pursuant to any Lease on a replacement cost basis.
If the insurance required under this subparagraph is not obtained by blanket insurance policies,
the insurance policy shall be endorsed to also provide guaranteed building replacement cost to the
Improvements and such tenant improvements in an amount to be subject to the consent of Lender,
which consent shall not be unreasonably withheld, but in all events, not less than would be
required to restore the Property following a Casualty. Lender shall be named Lender Loss Payee on
a Standard Mortgagee Endorsement.

          (b) Flood insurance if any part of the Property is located in an area identified by the
Federal Emergency Management Agency as an area having special flood hazards, in an amount at least
equal to the lesser of: (i) the greater of (A) the then full replacement cost of the Property
without deduction for physical depreciation and (B) the unpaid Principal and (ii) the maximum limit
of coverage available under the National Flood Insurance Plan with respect to the Property;
provided, however, that Lender shall be entitled to require flood insurance in amounts greater than
the foregoing, in its discretion.

47

 

          (c) Public liability insurance, including (i) ”Commercial General Liability Insurance,” (ii)
”Owned,” “Hired” and “Non Owned Auto Liability”; and (iii) umbrella liability coverage for personal
injury, bodily injury, death, accident and property damage, such insurance providing in combination
not less than $1,000,000 per occurrence, not less than $2,000,000 in the annual aggregate and not
less than $5,000,000 umbrella, each on a per location basis. If aggregate limits are shared with
other locations the coverage shall include either (A) a “Per Location Aggregate Endorsement” or (B)
the amount of umbrella liability insurance to be provided shall be not less than $5,000,000 in
excess of the umbrella coverage set forth in the preceding sentence. The policies described in
this subsection shall also include coverage for elevators, escalators, independent contractors,
“Contractual Liability” (covering, to the maximum extent permitted by law, Borrower’s obligation to
indemnify Lender as required under this Agreement and the other Loan Documents), “Products” and
“Completed Operations Liability” coverage.

          (d) Rental loss and/or business interruption insurance (i) with Lender being named as “Lender
Loss Payee,” (ii) in an amount equal to one hundred percent (100%) of the projected Rents from the
Property during the period of restoration; and (iii) containing an extended period of indemnity
endorsement which provides that after the physical loss to the Property has been repaired, the
continued loss of income will be insured until such income either returns to the same level it was
at prior to the loss, or the expiration of twelve (12) months from the date that the Property is
damaged, whichever first occurs, and notwithstanding that the policy may expire prior to the end of
such period. The amount of such insurance shall be increased from time to time during the Term as
and when the estimated or actual Rents increase.

          (e) To the extent such equipment is located at the Property, comprehensive boiler and
machinery insurance covering all mechanical and electrical equipment against physical damage, rent
loss and improvements loss and covering, without limitation, all tenant improvements and
betterments that Borrower is required to insure pursuant to the lease on a replacement cost basis
and in the minimum amount of $5,000,000.

          (f) Worker’s compensation insurance with respect to any employees of Borrower, as required by
any Legal Requirement.

          (g) During any period of repair or restoration, builder’s “all-risk” insurance in an amount
equal to not less than the full insurable value of the Property, against such risks (including fire
and extended coverage and collapse of the Improvements to agreed limits) as Lender may request, in
form and substance acceptable to Lender, and coverage to compensate for the cost of demolition and
the increased cost of construction in an amount satisfactory to Lender.

          (h) Such other insurance (including environmental liability insurance, earthquake insurance
and windstorm insurance) as may from time to time be reasonably required by Lender in order to
protect its interests.

48

 

          7.1.2 Policies. All policies of insurance (the “Policies”) required pursuant to
Section 7.1.1 shall (i) be issued by companies approved by Lender and licensed to do business in
the State, with a claims paying ability rating of “A” or better by S&P (and the equivalent by any
other Rating Agency) and a rating of A:VII or better in the current Best’s Insurance Report;
(ii) name Lender and its successors and/or assigns as their interests may appear as the mortgagee
(in the case of property and rent loss or business interruption insurance) or an additional insured
(in the case of liability insurance); (iii) contain (in the case of property insurance) a
Non-Contributory Standard Mortgagee Clause and a Lender’s Loss Payable Endorsement, or their
equivalents, naming Lender as the Person to which all payments made by such insurance company shall
be paid; (iv) contain provisions permitting Borrower to waive its right of subrogation against
Lender; (v) be assigned and the originals thereof delivered to Lender; (vi) contain such provisions
as Lender deems reasonably necessary or desirable to protect its interest, including (A)
endorsements providing that neither Borrower, Lender nor any other party shall be a co-insurer
under the Policies, (B) that Lender shall receive at least thirty (30) days’ prior written notice
of any modification, reduction or cancellation of any of the Policies, (C) an agreement whereby the
insurer waives any right to claim any premiums and commissions against Lender, provided that the
policy need not waive the requirement that the premium be paid in order for a claim to be paid to
the insured, and (D) providing that Lender is permitted to make payments to effect the continuation
of such Policy upon notice of cancellation due to non-payment of premiums; (vii) in the event any
insurance policy (except for general public and other liability and workers compensation insurance)
shall contain breach of warranty provisions, such policy shall provide that with respect to the
interest of Lender, such insurance policy shall not be invalidated by and shall insure Lender
regardless of (A) any act, failure to act or negligence of or violation of warranties, declarations
or conditions contained in such policy by any named insured, (B) the occupancy or use of the
premises for purposes more hazardous than permitted by the terms thereof, or (C) any foreclosure or
other action or proceeding taken by Lender pursuant to any provision of the Loan Documents; and
(viii) be satisfactory in form and substance to Lender and approved by Lender as to amounts, form,
risk coverage, deductibles, loss payees and insureds. Borrower shall pay or cause the tenants
under the Property Leases to pay the premiums for such Policies (the “Insurance Premiums”) as the
same become due and payable and furnish to Lender evidence of the renewal of each of the Policies
together with (unless such Insurance Premiums have been paid by Lender pursuant to Section 3.3)
receipts for or other evidence of the payment of the Insurance Premiums reasonably satisfactory to
Lender. If Borrower does not furnish such evidence and receipts at least fifteen (15) days prior
to the expiration of any expiring Policy, then Lender may, but shall not be obligated to, procure
such insurance and pay the Insurance Premiums therefor, and Borrower shall reimburse Lender for the
cost of such Insurance Premiums within five (5) Business Days of demand, with interest accruing at
the Default Rate. Borrower shall deliver to Lender a certified copy of each Policy within thirty
(30) days after its effective date. Notwithstanding the foregoing, Lender agrees that it is
acceptable for the property insurance carrier insurer of the 255 Spring Street, Clintonville,
Wisconsin portion of the Property to be rated BBB by S&P, A+XV by the current Best’s Insurance
Reports and AA- by Fitch.

     7.2 Casualty.

          7.2.1 Notice; Restoration. If the Property is damaged or destroyed, in whole or in
part, by fire or other casualty (a “Casualty”), Borrower shall give prompt notice thereof to
Lender. Following the occurrence of a Casualty, Borrower, provided that with respect to an Insured
Casualty the insurance proceeds are made available to Borrower as provided in Section 7.4 below,
shall promptly proceed to restore, repair, replace or rebuild the Property, and/or cause
the tenants under the Property Leases to so proceed as provided in the Property Leases, in
accordance with Legal Requirements to be of at least equal value and of substantially the same
character as prior to such damage or destruction.

49

 

          7.2.2 Settlement of Proceeds. If a Casualty covered by any of the Policies (an
“Insured Casualty”) occurs where the loss does not exceed $250,000, provided no Default or Event of
Default has occurred and is continuing, Borrower may settle and adjust any claim without the prior
consent of Lender; provided such adjustment is carried out in a competent and timely manner, and
Borrower is hereby authorized to collect and receipt for the insurance proceeds (the “Proceeds”).
In the event of an Insured Casualty where the loss equals or exceeds $250,000 (a “Significant
Casualty”), Lender may, in its sole discretion, settle and adjust any claim without the consent of
Borrower and agree with the insurer(s) on the amount to be paid on the loss, and the Proceeds shall
be due and payable solely to Lender and held by Lender in the Casualty/Condemnation Subaccount and
disbursed in accordance herewith. If Borrower or any party other than Lender is a payee on any
check representing Proceeds with respect to a Significant Casualty, Borrower shall immediately
endorse, and cause all such third parties to endorse, such check payable to the order of Lender.
Borrower hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an interest, to
endorse such check payable to the order of Lender. The reasonable out-of-pocket expenses incurred
by Lender in the settlement, adjustment and collection of the Proceeds shall become part of the
Debt and shall be reimbursed by Borrower to Lender within thirty (30) days of written request
therefor.

     7.3 Condemnation.

          7.3.1 Notice; Restoration. Borrower shall promptly give Lender notice of the actual
or threatened commencement of any condemnation or eminent domain proceeding affecting the Property
of which Borrower receives notice (a “Condemnation”) and shall deliver to Lender copies of any and
all papers served in connection with such Condemnation. Following the occurrence of a
Condemnation, Borrower, regardless of whether an Award is available (but provided that any Award
paid to and held by Lender shall be made available to Borrower as provided herein), shall promptly
proceed to restore, repair, replace or rebuild the Property, and/or shall cause the tenants under
any Property Leases to so proceed, in accordance with Legal Requirements to the extent practicable
to be of at least equal value and of substantially the same character (and to have the same
utility) as prior to such Condemnation.

          7.3.2 Collection of Award. Lender is hereby irrevocably appointed as Borrower’s
attorney-in-fact, coupled with an interest, with exclusive power to collect, receive and retain any
award or payment in respect of a Condemnation (an “Award”) and to make any compromise, adjustment
or settlement in connection with such Condemnation. Notwithstanding any Condemnation (or any
transfer made in lieu of or in anticipation of such Condemnation), Borrower shall continue to pay
the Debt at the time and in the manner provided for in the Loan Documents, and the Debt shall not
be reduced unless and until any Award shall have been actually received and applied by Lender to
expenses of collecting the Award and to discharge of the Debt. Lender shall not be limited to the
interest paid on the Award by the condemning authority but shall be entitled to receive out of the
Award interest at the rate or rates provided in the Note (or Undefeased Note, as the case may be).
If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of such
Award, Lender shall have the right, whether

50

 

or not a deficiency judgment on the Note shall be recoverable or shall have been sought,
recovered or denied, to receive all or a portion of the Award sufficient to pay the Debt. Borrower
shall cause any Award that is payable to Borrower to be paid directly to Lender. Lender shall hold
such Award in the Casualty/Condemnation Subaccount and disburse such Award in accordance with the
terms hereof.

     7.4 Application of Proceeds or Award.

          7.4.1 Application to Restoration. If an Insured Casualty or Condemnation occurs where
(i) [intentionally deleted], (ii) in the reasonable judgment of Lender, the Property can be
restored within the earliest to occur of (x) twelve (12) months from the date of the Insured
Casualty or Condemnation, (y) six (6) months before the Stated Maturity Date and (z) the expiration
of the rental or business interruption insurance with respect thereto, to the Property’s
pre-existing condition and utility as existed immediately prior to such Insured Casualty or
Condemnation and to an economic unit not less valuable and not less useful than the same was
immediately prior to the Insured Casualty or Condemnation, and after such restoration will
adequately secure the Debt and (iii) no Default or Event of Default shall have occurred and be then
continuing, then the Proceeds or the Award, as the case may be (after reimbursement of any expenses
incurred by Lender), shall be applied to reimburse Borrower for the cost of restoring, repairing,
replacing or rebuilding the Property (the “Restoration”), in the manner set forth herein. Borrower
shall commence and diligently prosecute such Restoration. Notwithstanding the foregoing, in no
event shall Lender be obligated to apply the Proceeds or Award to reimburse Borrower for the cost
of Restoration unless, in addition to satisfaction of the foregoing conditions, both (x) Borrower
shall pay (and if required by Lender, Borrower shall deposit with Lender in advance) all costs of
such Restoration in excess of the net amount of the Proceeds or the Award to be made available
pursuant to the terms hereof; and (y) Lender shall have received evidence reasonably satisfactory
to it that during the period of the Restoration, the Rents will be at least equal to the sum of the
operating expenses and Debt Service, as reasonably determined by Lender.

          7.4.2 Application to Debt. Except as provided in Section 7.4.1, any Proceeds and/or
Award may, at the option of Lender in its discretion, be applied to the payment of (i) accrued but
unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note
and/or any of the other Loan Documents, or applied to reimburse Borrower for the cost of any
Restoration, in the manner set forth in Section 7.4.3. Any such prepayment of the Loan shall be
without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at
the time the Proceeds are received from the insurance company or the Award is received from the
condemning authority, as the case may be, in which event Borrower shall pay to Lender an additional
amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the
amount of the Proceeds or Award applied to the unpaid Principal. After any such application to the
unpaid Principal, the remaining unpaid Principal shall be reamortized over the remaining term
hereof.

          7.4.3 Procedure for Application to Restoration. If Borrower is entitled to
reimbursement out of the Proceeds or an Award held by Lender, such Proceeds or Award shall be
disbursed from time to time from the Casualty/Condemnation Subaccount upon Lender being furnished
with (i) evidence satisfactory to Lender of the estimated cost of completion of the

51

 

Restoration, (ii) a fixed price or guaranteed maximum cost construction contract for
Restoration satisfactory to Lender, (iii) prior to the commencement of Restoration, all immediately
available funds in addition to the Proceeds or Award that in Lender’s judgment are required to
complete the proposed Restoration, (iv) such architect’s certificates, waivers of lien,
contractor’s sworn statements, title insurance endorsements, bonds, plats of survey, permits,
approvals, licenses and such other documents and items as Lender may reasonably require and approve
in Lender’s discretion, and (v) all plans and specifications and construction contracts for such
Restoration, such plans and specifications and construction contracts to be approved by Lender
prior to commencement of any work. Lender may, at Borrower’s expense, retain a consultant to
review and approve all requests for disbursements, which approval shall also be a condition
precedent to any disbursement. No payment made prior to the final completion of the Restoration
shall exceed ninety percent (90%) of the value of the work performed from time to time; funds other
than the Proceeds or Award shall be disbursed prior to disbursement of such Proceeds or Award; and
at all times, the undisbursed balance of such Proceeds or Award remaining in the hands of Lender,
together with funds deposited for that purpose or irrevocably committed to the satisfaction of
Lender by or on behalf of Borrower for that purpose, shall be at least sufficient in the reasonable
judgment of Lender to pay for the cost of completion of the Restoration, free and clear of all
Liens or claims for Lien. Provided no Default or Event of Default then exists, any surplus that
remains out of the Proceeds held by Lender after payment of such costs of Restoration shall be paid
to Borrower. Any surplus that remains out of the Award received by Lender after payment of such
costs of Restoration shall, in the discretion of Lender, be retained by Lender and applied to
payment of the Debt or returned to Borrower.

8. DEFAULTS

     8.1 Events of Default. An “Event of Default” shall exist with respect to the Loan if
any of the following shall occur:

          (a) any portion of the Debt is not paid when due or any other amount under Section 3.10(a)(i)
through (vii) is not paid in full when due (unless during a Cash Management Period sufficient funds
are available in the relevant Subaccount on the applicable due date);

          (b) any of the Taxes are not paid when due (unless Lender is paying such Taxes pursuant to
Section 3.3), subject to Borrower’s right to contest Taxes in accordance with Section 5.2;

          (c) the Policies are not kept in full force and effect, or are not delivered to Lender upon
request;

          (d) a Transfer other than a Permitted Transfer occurs;

          (e) any representation or warranty made in any Loan Document, or in any report, certificate,
financial statement or other instrument, agreement or document furnished by Borrower or Guarantor
in connection with any Loan Document, shall be false or misleading in any material respect as of
the date the representation or warranty was made;

52

 

          (f) Borrower, Borrower Representative or Guarantor shall make an assignment for the benefit of
creditors, or (ii) generally not be paying its debts as they become
due, to the extent that rents from the Property are available to pay its debts; provided
however, with respect to Guarantor, unless a replacement guarantor acceptable to Lender in its sole
discretion exercised in good faith executes a guaranty agreement in the form of the Guaranty of
Recourse Obligations dated of even date herewith within thirty (30) days;

          (g) a receiver, liquidator or trustee shall be appointed for Borrower, Borrower Representative
or Guarantor; or Borrower, Borrower Representative or Guarantor shall be adjudicated a bankrupt or
insolvent; or any petition for bankruptcy, reorganization or arrangement pursuant to federal
bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or
acquiesced in by, Borrower, Borrower Representative or Guarantor, as the case may be; or any
proceeding for the dissolution or liquidation of Borrower, Borrower Representative or Guarantor
shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding
was involuntary and not consented to by Borrower, Borrower Representative or Guarantor, as the case
may be, only upon the same not being discharged, stayed or dismissed within sixty (60) days;

          (h) any covenant contained in Sections 5.11.1 (a) — (f), 5.12, 5.14, 5.15 or 5.16 is breached;

          (i) except as expressly permitted hereunder, the actual or threatened alteration, improvement,
demolition or removal of all or any of portion of the Improvements without the prior written
consent of Lender or the physical waste of any portion of the Property;

          (j) an Event of Default as defined or described elsewhere in this Agreement or an event of
default under any other Loan Document after applicable notice and grace periods, if any;

          (k) a default occurs under any term, covenant or provision set forth herein or in any other
Loan Document which specifically contains a notice requirement or grace period and such notice has
been given and such grace period has expired;

          (l) [intentionally deleted];

          (m) a default shall be continuing under any of the other terms, covenants or conditions of
this Agreement or any other Loan Document not otherwise specified in this Section 8.1, for ten (10)
days after notice to Borrower (or Guarantor, if applicable) from Lender, in the case of any default
which can be cured by the payment of a sum of money, or for thirty (30) days after notice from
Lender in the case of any other default; provided, however, that if such non-monetary default is
susceptible of cure but cannot reasonably be cured within such thirty (30)-day period, and Borrower
(or Guarantor, if applicable) shall have commenced to cure such default within such thirty (30)-day
period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30)-day
period shall be extended for an additional period of time as is reasonably necessary for Borrower
(or Guarantor, if applicable) in the exercise of due diligence to cure such default, such
additional period not to exceed ninety (90) days;

          (n) [intentionally deleted.]

          (o) Any Event of Default, or event which with the passage of time or the giving of notice, or
both would constitute an Event of Default, occurs under the Ground Lease, the Indenture, the Direct
Pay Agreement or any other Bond Document.

53

 

     8.2 Remedies.

          8.2.1 Acceleration. Upon the occurrence of an Event of Default (other than an Event
of Default described in paragraph (f) or (g) of Section 8.1) and at any time and from time to time
thereafter, in addition to any other rights or remedies available to it pursuant to the Loan
Documents or at law or in equity, Lender may take such action, without notice or demand, that
Lender deems advisable to protect and enforce its rights against Borrower and in and to the
Property; including declaring the Debt to be immediately due and payable (including unpaid
interest), Default Rate interest, Late Payment Charges, Yield Maintenance Premium and any other
amounts owing by Borrower), without notice or demand; and upon any Event of Default described in
paragraph (f) or (g) of Section 8.1, the Debt (including unpaid interest, Default Rate interest,
Late Payment Charges, Yield Maintenance Premium and any other amounts owing by Borrower) shall
immediately and automatically become due and payable, without notice or demand, and Borrower hereby
expressly waives any such notice or demand, anything contained in any Loan Document to the contrary
notwithstanding.

          8.2.2 Remedies Cumulative. Upon the occurrence of an Event of Default, all or any one
or more of the rights, powers, privileges and other remedies available to Lender against Borrower
under the Loan Documents or at law or in equity may be exercised by Lender at any time and from
time to time, whether or not all or any of the Debt shall be declared, or be automatically, due and
payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action
for the enforcement of its rights and remedies under any of the Loan Documents. Any such actions
taken by Lender shall be cumulative and concurrent and may be pursued independently, singly,
successively, together or otherwise, at such time and in such order as Lender may determine in its
discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the
other rights and remedies of Lender permitted by law, equity or contract or as set forth in the
Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event
of Default is continuing, (i) to the extent permitted by applicable law, Lender is not subject to
any “one action” or “election of remedies” law or rule, and (ii) all Liens and other rights,
remedies or privileges provided to Lender shall remain in full force and effect until Lender has
exhausted all of its remedies against the Property, the Mortgage has been foreclosed, the Property
has been sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been paid
in full. To the extent permitted by applicable law, nothing contained in any Loan Document shall
be construed as requiring Lender to resort to any portion of the Property for the satisfaction of
any of the Debt in preference or priority to any other portion, and Lender may seek satisfaction
out of the entire Property or any part thereof, in its discretion.

          8.2.3 Severance. Lender shall have the right from time to time to sever the Note and
the other Loan Documents into one or more separate notes, mortgages and other security documents
(and, in connection therewith, to bifurcate or otherwise modify the nature of the collateral that
secures such notes) in such denominations and priorities of payment and liens as Lender shall
determine in its discretion for purposes of evidencing and enforcing its rights and

54

 

remedies. Borrower shall execute and deliver to Lender from time to time, promptly after the
request of Lender, a severance agreement and such other documents as Lender shall request in order
to effect the severance described in the preceding sentence, all in form and substance reasonably
satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and
lawful attorney, coupled with an interest, in its name and stead to make and execute all documents
necessary or desirable to effect such severance, Borrower ratifying all that such attorney shall do
by virtue thereof.

          8.2.4 Delay. No delay or omission to exercise any remedy, right or power accruing
upon an Event of Default, or the granting of any indulgence or compromise by Lender shall impair
any such remedy, right or power hereunder or be construed as a waiver thereof, but any such remedy,
right or power may be exercised from time to time and as often as may be deemed expedient. A
waiver of one Default or Event of Default shall not be construed to be a waiver of any subsequent
Default or Event of Default or to impair any remedy, right or power consequent thereon.
Notwithstanding any other provision of this Agreement, Lender reserves the right to seek a
deficiency judgment or preserve a deficiency claim in connection with the foreclosure of the
Mortgage to the extent necessary to foreclose on all or any portion of the Property, the Rents, the
Cash Management Accounts or any other collateral.

          8.2.5 Lender’s Right to Perform. If Borrower fails to perform any covenant or
obligation contained herein and such failure shall continue for a period of five Business Days
after Borrower’s receipt of written notice thereof from Lender, without in any way limiting
Lender’s right to exercise any of its rights, powers or remedies as provided hereunder, or under
any of the other Loan Documents, Lender may, but shall have no obligation to, perform, or cause
performance of, such covenant or obligation, and all costs, expenses, liabilities, penalties and
fines of Lender incurred or paid in connection therewith shall be payable by Borrower to Lender
upon demand and if not paid shall be added to the Debt (and to the extent permitted under
applicable laws, secured by the Mortgage and other Loan Documents) and shall bear interest
thereafter at the Default Rate. Notwithstanding the foregoing, Lender shall have no obligation to
send notice to Borrower of any such failure.

9. SECONDARY MARKET PROVISIONS

     9.1 Transfer of Loan. Lender may, at any time, sell, transfer or assign the Loan, the
Loan Documents and any or all servicing rights with respect thereto, or grant participations
therein or issue mortgage pass through certificates or other securities evidencing a beneficial
interest in a rated or unrated public offering or private placement (the “Securities”) secured by
or evidencing ownership interests in the Note and the Mortgage (each such sale, assignment,
participation and/or securitization, a “Secondary Market Transaction”). Lender may forward to each
purchaser, transferee, assignee, servicer, participant, investor in such Securities or any Rating
Agency (all of the foregoing entities collectively referred to as the “Investor”) and each
prospective Investor, all documents and information which Lender now has or may hereafter acquire
relating to the Loan and to Borrower, the Borrower Representative and Guarantor and the Property,
whether furnished by Borrower, the Borrower Representative, Guarantor or otherwise, as Lender
determines necessary or appropriate. Borrower, the Borrower Representative and Guarantor agree to
cooperate with Lender in connection with any transfer made or any Securities created pursuant to
this Section. Borrower shall also promptly furnish

55

 

and Borrower, the Borrower Representative, Guarantor consent to Lender furnishing to such
Investors or such prospective Investors or Rating Agency any and all available information
concerning the Property, the Leases, the financial condition of Borrower, the Borrower
Representative and Guarantor (the “Provided Information”) as may be requested by Lender, any
Investor or any prospective Investor or Rating Agency (including, but not limited to, copies of
information previously supplied to Lender) in connection with any sale, transfer or participation
interest. In addition to any other obligations Borrower may have hereunder, Borrower shall execute
such amendments to the Loan Documents and Borrower’s organizational documents as may be requested
by the holder of the Note or any Investor to effect the assignment of the Note and the other Loan
Documents and/or issuance of Securities including (i) bifurcating the Note into two or more notes
and/or splitting the Mortgage into two or more mortgages of the same or different priorities or
otherwise as determined by and acceptable to Lender or (ii) dividing the Note into multiple
components corresponding to tranches of certificates to be issued in a Secondary Market Transaction
each having a notional balance and an interest rate determined by Lender; provided, however, that
Borrower shall not be required to modify or amend any Loan Document if the overall effect of such
modification or amendment would (y) change the initial weighted average interest rate, the maturity
or the amortization of principal set forth in the Note, or (z) modify or amend any other material
economic term of the Note or the other Loan Documents. Lender will pay all costs and expenses
associated with a Secondary Market Transaction.

     9.2 Use of Information. Borrower understands that all or any portion of the Provided
Information may be included in disclosure documents in connection with a Secondary Market
Transaction. Lender may require Borrower to review and approve a brief narrative asset summary of
the Loan, Manager, the Property and Borrower (and its ownership), and Borrower shall cooperate with
Lender in updating the Provided Information for inclusion or summary in the narrative asset summary
or for other use reasonably required in connection with a Secondary Market Transaction by providing
all current information pertaining to the Loan, Borrower, Manager and the Property necessary to
keep the narrative asset summary accurate and complete in all material respects with respect to
such matters.

     9.3 Borrower Indemnity. Borrower shall indemnify Lender for any losses, claims,
damages or liabilities (“Liabilities”) arising out of or based upon the omission of any material
fact in the Provided Information or the failure to correct any misstatement in the Provided
Information in order to make the statements in the Provided Information, in light of the
circumstances under which they were made not misleading and shall reimburse Lender for any legal or
other expenses actually incurred by Lender in connection with defending or investigating the
Liabilities.

     9.4 [Intentionally Deleted.]

10. MISCELLANEOUS

     10.1 Exculpation. Subject to the qualifications below, Lender shall not enforce the
liability and obligation of Borrower to perform and observe the obligations contained in the Loan
Documents by any action or proceeding wherein a money judgment shall be sought against Borrower,
except that Lender may bring a foreclosure action, an action for specific performance

56

 

or any other appropriate action or proceeding to enable Lender to enforce and realize upon its
interest and rights under the Loan Documents, or in the Property, the Rents or any other collateral
given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically
provided herein, any judgment in any such action or proceeding shall be enforceable against
Borrower only to the extent of Borrower’s interest in the Property, in the Rents and in any other
collateral given to Lender, and Lender shall not sue for, seek or demand any deficiency judgment
against Borrower in any such action or proceeding under or by reason of or under or in connection
with any Loan Document. The provisions of this Section shall not, however, (i) constitute a
waiver, release or impairment of any obligation evidenced or secured by any Loan Document; (ii)
impair the right of Lender to name Borrower as a party defendant in any action or suit for
foreclosure and sale under the Mortgage; (iii) affect the validity or enforceability of any of the
Loan Documents or any guaranty made in connection with the Loan or any of the rights and remedies
of Lender thereunder; (iv) impair the right of Lender to obtain the appointment of a receiver; (v)
impair the enforcement of the Assignment of Leases; (vi) constitute a prohibition against Lender to
commence any other appropriate action or proceeding in order for Lender to fully realize the
security granted by the Mortgage or to exercise its remedies against the Property; or (vii)
constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by
money judgment or otherwise, to the extent of any loss, damage, cost, expense, liability, claim or
other obligation incurred by Lender (including attorneys’ fees and costs reasonably incurred)
arising out of or in connection with the following (all such liability and obligation of Borrower
for any or all of the foregoing being referred to herein as “Borrower’s Recourse Liabilities”): (a)
fraud or intentional misrepresentation by Borrower or any guarantor in connection with the Loan;
(b) [intentionally deleted]; (c) the breach of any representation, warranty, covenant or
indemnification in any Loan Document concerning Environmental Laws or Hazardous Substances,
including Sections 4.19 and 5.7, and clauses (viii) through (xi) of Section 5.18; (d) physical
waste occurring as a result of the gross negligence or willful misconduct of the Borrower or after
an Event of Default, the removal or disposal of any portion of the Property; (e) the misapplication
or conversion by Borrower of (x) any Proceeds paid by reason of any Insured Casualty, (y) any Award
received in connection with a Condemnation, or (z) any Rents, refund of Taxes or amounts in any
Subaccount (including any distributions or payments to members/partners/shareholders of Borrower
during a period which Lender did not receive the full amounts required to be paid to Lender under
the Loan Documents); (f) [intentionally deleted]; (g) any security deposits collected with respect
to the Property which are not delivered to Lender upon a foreclosure of the Mortgage or action in
lieu thereof, except to the extent any such security deposits were applied in accordance with the
terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave
rise to such foreclosure or action in lieu thereof; and (h) [intentionally deleted.}

Notwithstanding anything to the contrary in this Agreement or any of the Loan Documents, (A) Lender
shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b),
1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the
Debt or to require that all collateral shall continue to secure all of the Debt in accordance with
the Loan Documents, and (B) Lender’s agreement not to pursue personal liability of Borrower as set
forth above SHALL BECOME NULL AND VOID and shall be of no further force and effect, and the Debt
shall be fully recourse to Borrower in the event that one or more of the following occurs (each, a
“Springing Recourse Event”): (i) an Event of Default described in Section 8.1(d) shall have
occurred or (ii) a breach of the covenant set forth in

57

 

Section 5.12, or (iii) the occurrence of any condition or event described in either (y) Section
8.1(f), or (z) Section 8.1(g) and, with respect to such condition or event described in Section
8.1(g), either Borrower, Borrower Representative, Guarantor or any Person owning an interest
(directly or indirectly) in Borrower, Borrower Representative or Guarantor (other than the holder
of any publicly traded shares or securities of Guarantor who are not officers or directors of
Guarantor) causes such event or condition to occur (by way of example, but not limitation, such
Person seeks the appointment of a receiver or files a bankruptcy petition), consents to, aids,
solicits, supports, or otherwise cooperates or colludes to cause such condition or event to occur
or fails to contest such condition or event.

     10.2 Brokers and Financial Advisors. Borrower hereby represents that it has dealt
with no financial advisors, brokers, underwriters, placement agents, agents or finders who will not
be paid from the proceeds of the Loan at closing. Borrower shall indemnify and hold Lender
harmless from and against any and all claims, liabilities, costs and expenses (including attorneys’
fees, whether incurred in connection with enforcing this indemnity or defending claims of third
parties) of any kind in any way relating to or arising from a claim by any Person that such Person
acted on behalf of Borrower in connection with the transactions contemplated herein. The
provisions of this Section 10.2 shall survive the expiration and termination of this Agreement and
the repayment of the Debt. Borrower, Borrower Representative, and any sponsor of Borrower
acknowledge and agree that Lender and any of Lender’s agents or correspondents, reserve the right,
in their sole and absolute discretion, to provide additional compensation to any broker,
correspondent or originator of the Loan.

     10.3 Retention of Servicer. Lender reserves the right to retain the Servicer and any
special servicer to act as its agent(s) hereunder with such powers as are specifically delegated to
the Servicer and any special servicer by Lender, whether pursuant to the terms of this Agreement,
any pooling and servicing agreement or similar agreement entered into as a result of a Secondary
Market Transaction, the Deposit Account Agreement or otherwise, together with such other powers as
are reasonably incidental thereto. Borrower shall pay any reasonable fees and expenses of the
Servicer and any special servicer in connection with a Defeasance, release of the Property,
assumption or modification of the Loan, enforcement of the Loan Documents or workout or restructure
or any other action taken by Servicer or any special servicer hereunder on behalf of Lender.

     10.4 Survival. This Agreement and all covenants, agreements, representations and
warranties made herein and in the certificates delivered pursuant hereto shall survive the making
by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in
full force and effect so long as any of the Debt is unpaid or such longer period if expressly set
forth in this Agreement. All Borrower’s and Lender’s covenants and agreements in this Agreement
shall inure to the benefit of the respective legal representatives, successors and assigns of
Lender or Borrower (as applicable).

     10.5 Lender’s Discretion. Whenever pursuant to this Agreement or any other Loan
Document, Lender exercises any right given to it to approve or disapprove, or consent or withhold
consent, or any arrangement or term is to be satisfactory to Lender or is to be in Lender’s
discretion, the decision of Lender to approve or disapprove, to consent or withhold consent, or to
decide whether arrangements or terms are satisfactory or not satisfactory, or
acceptable or unacceptable or in Lender’s discretion shall (except as is otherwise
specifically herein provided) be in the sole discretion of Lender and shall be final and
conclusive.

58

 

     10.6 Governing Law.

          (a) THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK, PROVIDED THAT, TO THE EXTENT ANY OF SUCH LAWS MAY NOW OR HEREAFTER BE PREEMPTED BY
FEDERAL LAW, SUCH FEDERAL LAW SHALL SO GOVERN AND BE CONTROLLING.

          (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING
TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT OF COMPETENT JURISDICTION OVER
THE COUNTY OF NEW YORK AND BORROWER AND LENDER EACH WAIVES ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER AND
LENDER EACH HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. BORROWER AND LENDER EACH DOES HEREBY CONSENT AND AGREE TO SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY REGISTERED OR CERTIFIED
U.S. MAIL, POSTAGE PREPAID, TO BORROWER AND LENDER AT THE ADDRESS FOR NOTICES DESCRIBED IN SECTION
6.1 HEREOF, AND EACH CONSENTS AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE IN EVERY RESPECT VALID
AND EFFECTIVE SERVICE (BUT NOTHING HEREIN SHALL AFFECT THE VALIDITY OR EFFECTIVENESS OF PROCESS
SERVED IN ANY OTHER MANNER PERMITTED BY LAW).

     10.7 Modification, Waiver in Writing. No modification, amendment, extension,
discharge, termination or waiver of any provision of this Agreement or of any other Loan Document,
nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same
shall be in a writing signed by the party against whom enforcement is sought, and then such waiver
or consent shall be effective only in the specific instance, and for the purpose, for which given.
Except as otherwise expressly provided herein, no notice to or demand on Borrower shall entitle
Borrower to any other or future notice or demand in the same, similar or other circumstances.
Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any
term, condition, covenant or agreement, or exercising any right, power, remedy or privilege
hereunder, or under any other Loan Document, shall operate as or constitute a waiver thereof, nor
shall a single or partial exercise thereof preclude any other future exercise, or the exercise of
any other right, power, remedy or privilege. In particular, and not by way of limitation, by
accepting payment after the due date of any amount payable under any Loan Document, Lender shall
not be deemed to have waived any right either to require prompt payment when due of all other
amounts due under the Loan Documents, or to declare an Event of Default for failure to effect
prompt payment of any such other amount.

59

 

     10.8 Trial by Jury. BORROWER AND LENDER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF
ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE
ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN
CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY
BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO
WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EITHER PARTY IS HEREBY AUTHORIZED TO
FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER.

     10.9 Headings/Exhibits. The Section headings in this Agreement are included herein
for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose. The Exhibits attached hereto, are hereby incorporated by reference as a part of the
Agreement with the same force and effect as if set forth in the body hereof.

     10.10 Severability. Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

     10.11 Preferences. Upon the occurrence and continuance of an Event of Default, Lender
shall have the continuing and exclusive right to apply or reverse and reapply (or having so
applied, to reverse and reapply) any and all payments by Borrower to any portion of the Debt. To
the extent Borrower makes a payment to Lender, or Lender receives proceeds of any collateral, which
is in whole or in part subsequently invalidated, declared to be fraudulent or preferential, set
aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law,
state or federal law, common law or equitable cause, then, to the extent of such payment or
proceeds received, the Debt or part thereof intended to be satisfied shall be revived and continue
in full force and effect, as if such payment or proceeds had not been received by Lender. This
provision shall survive the expiration or termination of this Agreement and the repayment of the
Debt.

     10.12 Waiver of Notice. Borrower shall not be entitled to any notices of any nature
whatsoever from Lender except with respect to matters for which this Agreement or any other Loan
Document specifically and expressly requires the giving of notice by Lender to Borrower and except
with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements,
permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any
notice from Lender with respect to any matter for which no Loan Document specifically and expressly
requires the giving of notice by Lender to Borrower.

     10.13 Remedies of Borrower. If a claim or adjudication is made that Lender or any of
its agents, including Servicer, has acted unreasonably or unreasonably delayed acting in any case
where by law or under any Loan Document, Lender or any such agent, as the case may be, has an
obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents,
including Servicer, shall be liable for any monetary damages, and Borrower’s sole remedy shall be
to commence an action seeking injunctive relief or declaratory judgment. Any action or

60

 

proceeding to determine whether Lender has acted reasonably shall be determined by an action
seeking declaratory judgment. Borrower specifically waives any claim against Lender and its
agents, including Servicer, with respect to actions taken by Lender or its agents on Borrower’s
behalf, except for the gross negligence or willful misconduct of Servicer.

     10.14 Prior Agreements. This Agreement and the other Loan Documents contain the
entire agreement of the parties hereto and thereto in respect of the transactions contemplated
hereby and thereby, and all prior agreements, understandings and negotiations among or between such
parties, whether oral or written, are superseded by the terms of this Agreement and the other Loan
Documents.

     10.15 Offsets, Counterclaims and Defenses. Borrower hereby waives the right to assert
a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against
it by Lender or its agents, including Servicer, or otherwise offset any obligations to make
payments required under the Loan Documents. Any assignee of Lender’s interest in and to the Loan
Documents shall take the same free and clear of all offsets, counterclaims or defenses which
Borrower may otherwise have against any assignor of such documents, and no such offset,
counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding
brought by any such assignee upon such documents, and any such right to interpose or assert any
such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly
waived by Borrower.

     10.16 Publicity. All news releases, publicity or advertising by Borrower or its
Affiliates through any media intended to reach the general public, which refers to the Loan
Documents, the Loan, Lender, a Loan purchaser, the Servicer or the trustee in a Secondary Market
Transaction, shall be subject to the prior written approval of Lender; provided, however that the
Guarantor or its Affiliates shall be each entitled to make without the approval of Lender any
public announcement of, or any public filing relating to the foregoing, if such announcement is
required to comply with laws or any listing agreement with any national securities exchange or
inter-dealer quotation system or in the opinion of legal counsel a disclosure directly resulting
from Guarantor’s status as a public company. Lender shall have the right to issue any of the
foregoing without Borrower’s approval

     10.17 No Usury. Borrower and Lender intend at all times to comply with applicable
state law or applicable United States federal law (to the extent that it permits Lender to contract
for, charge, take, reserve or receive a greater amount of interest than under state law) and that
this Section 10.17 shall control every other agreement in the Loan Documents. If the applicable
law (state or federal) is ever judicially interpreted so as to render usurious any amount called
for under the Note or any other Loan Document, or contracted for, charged, taken, reserved or
received with respect to the Debt, or if Lender’s exercise of the option to accelerate the maturity
of the Loan or any prepayment by Borrower results in Borrower having paid any interest in excess of
that permitted by applicable law, then it is Borrower’s and Lender’s express intent that all excess
amounts theretofore collected by Lender shall be credited against the unpaid Principal and all
other Debt (or, if the Debt has been or would thereby be paid in full, refunded to Borrower), and
the provisions of the Loan Documents immediately be deemed reformed and the amounts thereafter
collectible thereunder reduced, without the necessity of the execution of any new document, so as
to comply with applicable law, but so as to permit the recovery of the

61

 

fullest amount otherwise called for thereunder. All sums paid or agreed to be paid to Lender
for the use, forbearance or detention of the Loan shall, to the extent permitted by applicable law,
be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until
payment in full so that the rate or amount of interest on account of the Debt does not exceed the
maximum lawful rate from time to time in effect and applicable to the Debt for so long as the Debt
is outstanding. Notwithstanding anything to the contrary contained in any Loan Document, it is not
the intention of Lender to accelerate the maturity of any interest that has not accrued at the time
of such acceleration or to collect unearned interest at the time of such acceleration.

     10.18 Conflict; Construction of Documents. In the event of any conflict between the
provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement
shall control. The parties hereto acknowledge that each is represented by separate counsel in
connection with the negotiation and drafting of the Loan Documents and that the Loan Documents
shall not be subject to the principle of construing their meaning against the party that drafted
them.

     10.19 No Third Party Beneficiaries. The Loan Documents are solely for the benefit of
Lender and Borrower and nothing contained in any Loan Document shall be deemed to confer upon
anyone other than the Lender and Borrower any right to insist upon or to enforce the performance or
observance of any of the obligations contained therein.

     10.20 Yield Maintenance Premium. Borrower acknowledges that (a) Lender is making the
Loan in consideration of the receipt by Lender of all interest and other benefits intended to be
conferred by the Loan Documents that is not prepayable prior to the Stated Maturity Date and (b) if
payments of Principal are made to Lender prior to the regularly scheduled due date for such
payment, for any reason whatsoever, including as a result of Lender’s acceleration of the Loan
after an Event of Default, by operation of law or otherwise, Lender will not receive all such
interest and other benefits and may, in addition, incur costs. For these reasons, and to induce
Lender to make the Loan, Borrower expressly waives any right or privilege to prepay the Loan except
as otherwise may be specifically permitted herein and agrees that, except as expressly provided in
Sections 2.3.4 and 7.4.2, all prepayments, if any, will be accompanied by the Yield Maintenance
Premium. Such Yield Maintenance Premium shall be required whether payment is made by Borrower, by
a Person on behalf of Borrower, or by the purchaser at any foreclosure sale, and may be included in
any bid by Lender at such sale. Borrower further acknowledges that (A) it is a knowledgeable real
estate developer and/or investor; (B) it fully understands the effect of the provisions of this
Section 10.20, as well as the other provisions of the Loan Documents; (C) the making of the Loan by
Lender at the Interest Rate and other terms set forth in the Loan Documents are sufficient
consideration for Borrower’s obligation to pay a Yield Maintenance Premium (if required); and (D)
Lender would not make the Loan on the terms set forth herein without the inclusion of such
provisions. Borrower also acknowledges that the provisions of this Agreement limiting the right of
prepayment and providing for the payment of the Yield Maintenance Premium and other charges
specified herein were independently negotiated and bargained for, and constitute a specific
material part of the consideration given by Borrower to Lender for the making of the Loan except as
expressly permitted hereunder.

62

 

     10.21 Assignment. The Loan, the Note, the Loan Documents and/or Lender’s rights,
title, obligations and interests therein may be assigned by Lender and any of its successors and
assigns to any Person at any time in its discretion, in whole or in part, whether by operation of
law (pursuant to a merger or other successor in interest) or otherwise. Upon such assignment, all
references to Lender in this Loan Agreement and in any Loan Document shall be deemed to refer to
such assignee or successor in interest and such assignee or successor in interest shall thereafter
stand in the place of Lender. Borrower may not assign its rights, title, interests or obligations
under this Loan Agreement or under any of the Loan Documents.

     10.22 Counterparts. This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument.

[NO FURTHER TEXT ON THIS PAGE]

63

 

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

	 	 	 	 	 
	 	 	2525 N WOODLAWN VSTRM WICHITA KS, LLC, 
a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Its: Vice President
	 
	 	 	 	 
	 	 	CI05 CLINTONVILLE WI LLC, a Delaware 
limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Its: Vice President
	 
	 	 	 	 
	 	 	MSI05-3 LLC, a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Its: Vice President
	 
	 	 	 	 
	 	 	IXIS REAL ESTATE CAPITAL INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:

 

 

Schedule 1

Index of Other Definitions

“Act” – Schedule 4

“Annual Budget” — 6.3.5

“Applicable Taxes” — 2.2.3

“Award” — 7.3.2

“Bankruptcy Action” – Schedule 4

“Bankruptcy Code” – Mortgage

“Bankruptcy Proceeding” — 4.7

“Borrower’s Recourse Liabilities” — 10.1

“Buyer” — 5.16

“Capital Budget” — 6.3.5

“Capital Reserve Subaccount” — 3.4

“Cash Management Accounts” — 3.9

“Casualty” — 7.2.1

“Casualty/Condemnation Prepayment” — 2.3.2

“Casualty/Condemnation Subaccount” — 3.7

“Clearing Account” — 3.1

“Clearing Bank” — 3.1

“Condemnation” — 7.3.1

“Defeasance” — 2.3.3

“Defeasance Date” — 2.3.3

“Defeasance Deposit” — 2.3.3

“Defeased Note” — 2.3.3

“Deposit Account” — 3.1

“Direct Pay Agreement” – Definition of Ground Lease

“Eligible Account” — Deposit Account Agreement

“Embargoed Person” – 5.19

“Environmental Laws” —  4.19

“Equipment” — Mortgage

“Full Defeasance” — 2.3.3

“Hazardous Substances” — 4.19

“Improvements” — Mortgage

“Indemnified Liabilities” — 5.18

“Indemnified Party” — 5.18

“Independent Director” – Schedule 4

“Independent Manager” – Schedule 4

“Insurance Premiums” — 7.1.2

“Insured Casualty” — 7.2.2

“Investor” — 9.1

“Late Payment Charge” — 2.5.3

“Liabilities” — 9.3

“Licenses” — 4.10

“Loan” — 2.1

Schedule 1 - 1

 

“Monthly Debt Service Payment Amount” — 2.2.1

“Monthly Debt Service Subaccount” – 3.10(a)

“New Mezzanine Loan” – 9.4

“Notice” — 6.1

“Operating Budget” — 6.3.5

“Operating Expense Subaccount” — 3.6

“Partial Defeasance” — 2.3.3

“Permitted Investments” — Deposit Account Agreement

“Policies” — 7.1.2

“Principal” — 2.1

“Proceeds” — 7.2.2

“Provided Information” — 9.1

“Registration Statement” — 9.1.3

“Remedial Work” — 5.7.2

“Rent Roll” — 4.15

“Required Repairs Subaccount” — 3.2.2

“Required Records” — 6.3.6

“Required Repairs” — 3.2.1

“Required Repairs Subaccount” — 3.2.2

“Restoration” — 7.4.1

“Rollover Reserve Subaccount” — 3.5

“Scheduled Defeasance Payments” — 2.3.3

“Secondary Market Transaction” — 9.1

“Securities” — 9.1.1

“Security Agreement” — 2.3.3

“Security Deposit Account” — 3.8

“Security Deposit Subaccount” — 3.8

“Significant Casualty” — 7.2.2

“Single Member Bankruptcy Remote LLC” – Schedule 4

“Sole Member” – Schedule 4

“Special Member” – Schedule 4

“Special Purpose Bankruptcy Remote Entity” – Schedule 4

“Special Transfer” — 5.16

“Springing Recourse Event” – 10.1

“Subaccounts” — 3.1

“Successor Borrower” — 2.3.3

“Successor Guarantor” – 5.16

“Tax and Insurance Subaccount” — 3.3

“Undefeased Note” — 2.3.3

Schedule 1 - 2

 

Schedule 2

Required Repairs

Converting Property: Borrower shall perform or shall cause the tenant under the Property Lease for
the Converting Property to perform on or before June 1, 2006 the roof replacement required pursuant
to that certain side letter dated as of October 31, 2005 between CI05 Clintonville WI LLC, RF
Associates, LLC and Converting, Inc.

Spinners Property: Borrower shall perform or shall cause the tenant under the Property Lease for
the Spinners Property to perform on or before August 31, 2010 the deferred capital improvements
required pursuant to that certain side letter dated September 1, 2005 between MSI05-3 LLC and Metal
Spinners, Inc.

Schedule 2 - 1

 

Schedule 3

Organization of Borrower

	 	 
	Last Updated 01/24/06

Pending Entities: None	GLADSTONE COMMERCIAL

	ORGANIZATION CHART

	1% GP

	GCLP

	Business Trust I

	GCLP

	Business Trust II

	CI05 Clintonville WI LLC (DE)
2525 N. Woodlawn VStrm Wichita KS, LLC (DE)
MSI05-3 LLC (DE)
Gladstone Commercial
Partners, LLC (DE)

	100% Interest
Last Updated 01/24/06
Pending Entities: None
100% Interest
100% Membership Interest
99% LP Interest
100% Membership Interest

	Gladstone Commercial
Limited Partnership (DE)
Gladstone Commercial
Corporation (MD)
GLADSTONE COMMERCIAL ORGANIZATION CHART

Schedule 3 - 1

 

Schedule 4

Definition of Special Purpose Bankruptcy Remote Entity

A “Special Purpose Bankruptcy Remote Entity” means (x) a limited liability company that is a Single
Member Bankruptcy Remote LLC or (y) a corporation, limited partnership or limited liability company
which at all times since its formation and at all times thereafter

     (i) was and will be organized solely for the purpose of (A) owning the Property or (B) acting
as a general partner of the limited partnership that owns the Property or member of the limited
liability company that owns the Property;

     (ii) has not engaged and will not engage in any business unrelated to (A) the ownership of the
Property, (B) acting as general partner of the limited partnership that owns the Property or (C)
acting as a member of the limited liability company that owns the Property, as applicable;

     (iii) has not had and will not have any assets other than those related to the Property or its
partnership or member interest in the limited partnership or limited liability company that owns
the Property, as applicable;

     (iv) has not engaged, sought or consented to and will not engage in, seek or consent to any
dissolution, winding up, liquidation, consolidation, merger, asset sale (except as expressly
permitted by this Agreement), transfer of partnership or membership interests or the like, or
amendment of its limited partnership agreement, articles of incorporation, or operating agreement
(as applicable);

     (v) if such entity is a limited partnership, has and will have, as its only general partner a
single purpose entity that is a corporation;

     (vi) if such entity is a corporation, has and will have at least one Independent Director, and
has not caused or allowed and will not cause or allow the board of directors of such entity to take
any action requiring the unanimous affirmative vote of one hundred percent (100%) of the members of
its board of directors unless all of the directors and an Independent Director shall have
participated in such vote;

     (vii) if such entity is a limited liability company, has and will have at least one member
that has been and will be a single purpose entity that is the managing member of such limited
liability company;

     (viii) if such entity is a limited liability company, has and will have articles of
organization, a certificate of formation and/or an operating agreement, as applicable, providing
that (A) such entity will dissolve only upon the bankruptcy of the managing member, (B) the vote of
a majority-in-interest of the remaining members is sufficient to continue the life of the limited
liability company in the event of such bankruptcy of the managing member and (C) if the vote of a
majority-in-interest of the remaining members to continue the life of the limited liability company
following the bankruptcy of the managing member is not obtained, the limited liability company may
not liquidate the Property without the consent of the applicable Rating

Schedule 4 - 1

 

Agencies for as long as the Loan is outstanding;

     (ix) has not, and without the unanimous consent of all of its partners, directors or members
(including any Independent Director and/or Independent Manager), as applicable, will not, with
respect to itself or to any other entity in which it has a direct or indirect legal or beneficial
ownership interest, take any Bankruptcy Action;

     (x) has maintained and will maintain adequate capital in light of its contemplated business
operations;

     (xi) has not failed and will not fail to correct any known misunderstanding regarding the
separate identity of such entity;

     (xii) has maintained and will maintain its accounts, books and records separate from any other
Person and will file its own tax returns;

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

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

     (xv) has held and will hold its assets in its own name;

     (xvi) has conducted and will conduct its business in its name only, and has not and will not
use any trade name,

     (xvii) has maintained and will maintain its financial statements, accounting records and other
entity documents separate from any other Person;

     (xviii) has paid and will pay its own liabilities, including the salaries of its own
employees, out of its own funds and assets;

     (xix) has observed and will observe all partnership, corporate or limited liability company
formalities, as applicable;

     (xx) has maintained and will maintain an arm’s-length relationship with its Affiliates;

     (xxi) (a) if such entity owns the Property, has and will have no indebtedness other than the
Permitted Indebtedness, or

             (b) if such entity acts as the general partner of a limited partnership which owns the
Property, has and will have no indebtedness other than unsecured trade payables in the ordinary
course of business relating to acting as general partner of the limited partnership which owns the
Property which (1) do not exceed, at any time, $10,000 and (2) are paid within thirty (30) days of
the date incurred, or

             (c) if such entity acts as a managing member of a limited liability company

Schedule 4 - 2

 

which owns the Property, has and will have no indebtedness other than unsecured trade payables
in the ordinary course of business relating to acting as a member of the limited liability company
which owns the Property which (1) do not exceed, at any time, $10,000 and (2) are paid within
thirty (30) days of the date incurred;

     (xxii) has not and will not assume or guarantee or become obligated for the debts of any other
Person or hold out its credit as being available to satisfy the obligations of any other Person
except for the Loan;

     (xxiii) has not and will not acquire obligations or securities of its partners, members or
shareholders;

     (xxiv) has allocated and will allocate fairly and reasonably shared expenses, including shared
office space, and uses separate stationery, invoices and checks;

     (xxv) except in connection with the Loan, has not pledged and will not pledge its assets for
the benefit of any other Person;

     (xxvi) has held itself out and identified itself and will hold itself out and identify itself
as a separate and distinct entity under its own name and not as a division or part of any other
Person;

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

     (xxviii) has not made and will not make loans to any Person;

     (xxix) has not entered into or been a party to, and will not enter into or be a party to, any
transaction with its partners, members, shareholders or Affiliates except in the ordinary course of
its business and on terms which are intrinsically fair and are no less favorable to it than would
be obtained in a comparable arm’s-length transaction with an unrelated third party; and

     (xxx) has and will have no obligation to indemnify its partners, officers, directors, members
or Special Members, as the case may be, or has such an obligation that is fully subordinated to the
Debt and will not constitute a claim against it if cash flow in excess of the amount required to
pay the Debt is insufficient to pay such obligation.

“Independent Director” means in the case of a corporation, a natural person who, for the five (5)
year period prior to his or her appointment as Independent Director has not been, and during the
continuation of his or her service as Independent Director is not, directly or indirectly:

     (i) an employee, manager, stockholder, director, member, partner, officer, attorney or counsel
of the corporation or any of its Affiliates (other than his or her service as an Independent
Director of the corporation),

     (ii) a creditor, customer of, or supplier or other Person who derives any of its purchases or
revenues from its activities with the corporation or any of its shareholders or

Schedule 4 - 3

 

Affiliates (other than his or her service as an Independent Director if such Person has been
provided by a nationally-recognized company that provides professional independent managers),

     (iii) a Person controlling or under common control with any such employee, manager,
stockholder, director, member, partner, officer, attorney, counsel, customer, supplier or other
Person, or

     (iv) any member of the immediate family (including a grandchild or sibling) of a person
described in clauses (i), (ii) or (iii) immediately above. A natural person who otherwise
satisfies the foregoing definition shall not be disqualified from serving as an Independent
Director of the corporation because such person is an independent director of a “Special Purpose
Bankruptcy Remote Entity” affiliated with the corporation that does not own a direct or indirect
equity interest in the corporation or any entity that is a co-borrower with the corporation if such
individual is an independent director provided by a nationally-recognized company that provides
professional independent directors.

“Independent Manager” means in the case of a limited liability company, (a) a member that is a
single purpose entity, (b) a single purpose entity that is not a member or (c) a natural person
who, for the five (5) year period prior to his or her appointment as Independent Manager is not,
directly or indirectly:

     (i) an employee, manager, stockholder, director, member, partner, officer, attorney or counsel
of the limited liability company or any of its Affiliates (other than his or her service as an
Independent Manager or Special Member of the limited liability company),

     (ii) a creditor, customer of, or supplier or other Person who derives any of its purchases or
revenues from its activities with the limited liability company or any of its members or Affiliates
(other than his or her service as an Independent Manager if such Person has been provided by a
nationally-recognized company that provides professional independent managers),

     (iii) a Person controlling or under common control with any such employee, manager,
stockholder, director, member, partner, officer, attorney, counsel, customer, supplier or other
Person, or

     (iv) any member of the immediate family (including grandchildren or siblings) of a person
described in clauses (i), (ii) or (iii) immediately above. A natural person who otherwise
satisfies the foregoing definition shall not be disqualified from serving as an Independent Manager
of the limited liability company because such person is an independent manager of a “Special
Purpose Bankruptcy Remote Entity” affiliated with the limited liability company that does not own a
direct or indirect equity interest in the limited liability company or any entity that is a
co-borrower with the limited liability company if such individual is an independent manager
provided by a nationally-recognized company that provides professional independent managers.

“Single Member Bankruptcy Remote LLC” means a limited liability company organized under the laws of
the State of Delaware which at all times since its formation and at all times thereafter

     (i) complies with the following clauses of the definition of Special Purpose Bankruptcy Remote
Entity above: (i)(A), (ii)(A), (iii), (iv), (ix), (x), (xi) and (xiii) through (xxx);

Schedule 4 - 4

 

     (ii) has maintained and will maintain its accounts, books and records separate from any other
person;

     (iii) has and will have an operating agreement which provides that the business and affairs of
Borrower shall be managed by or under the direction of

          (A) a board of one (1) or more directors designated by the sole member of the Single Member
Bankruptcy Remote LLC (the “Sole Member”), and at all times there shall be at least one (1) duly
appointed Independent Director on the board of directors, and the board of directors will not take
any action requiring the unanimous affirmative vote of one hundred percent (100%) of the members of
its board of directors unless, at the time of such action there is at least one (1) member of the
board of directors who is an Independent Director, and all of the directors and the Independent
Director shall have participated in such vote or

          (B) Sole Member, provided that at all times there shall be at least one (1) Independent
Manager designated by Sole Member and the operating agreement provides that Sole Member shall not
take any Bankruptcy Actions without the affirmative vote of the Independent Manager;

     (iv) has and will have an operating agreement which provides that, as long as any portion of
the Debt remains outstanding,

          (A) upon the occurrence of any event that causes Sole Member to cease to be a member of
Borrower (other than (x) upon an assignment by Sole Member of all of its limited liability company
interest in Borrower and the admission of the transferee, if permitted pursuant to the
organizational documents of Borrower and the Loan Documents, or (y) the resignation of Sole Member
and the admission of an additional member of Borrower, if permitted pursuant to the organizational
documents of Borrower and the Loan Documents), one of the Independent Managers shall, without any
action of any Person and simultaneously with Sole Member ceasing to be a member of Borrower,
automatically be admitted as the sole member of Borrower (the “Special Member”) and shall preserve
and continue the existence of Borrower without dissolution,

          (B) no Special Member may resign or transfer its rights as Special Member unless a successor
Special Member has been admitted to Borrower as a Special Member, and

          (C) except as expressly permitted pursuant to the terms of this Agreement, Sole Member may not
resign and no additional member shall be admitted to Borrower;

     (v) has and will have an operating agreement which provides that, as long as any portion of
the Debt remains outstanding,

          (A) Borrower shall be dissolved, and its affairs shall be would up only upon the first to
occur of the following: (x) the termination of the legal existence of the last remaining member of
Borrower or the occurrence of any other event which terminates the continued membership of the last
remaining member of Borrower in Borrower unless the business of Borrower is continued in a manner
permitted by its operating agreement or the Delaware Limited Liability Company Act (the “Act”) or
(y) the entry of a decree of judicial dissolution under

Schedule 4 - 5

 

Section 18 802 of the Act;

          (B) upon the occurrence of any event that causes the last remaining member of Borrower to
cease to be a member of Borrower or that causes Sole Member to cease to be a member of Borrower
(other than (x) upon an assignment by Sole Member of all of its limited liability company interest
in Borrower and the admission of the transferee, if permitted pursuant to the organizational
documents of Borrower and the Loan Documents, or (y) the resignation of Sole Member and the
admission of an additional member of Borrower, if permitted pursuant to the organizational
documents of Borrower and the Loan Documents), to the fullest extent permitted by law, the personal
representative of such member shall be authorized to, and shall, within ninety (90) days after the
occurrence of the event that terminated the continued membership of such member in Borrower, agree
in writing to continue the existence of Borrower and to the admission of the personal
representative or its nominee or designee, as the case may be, as a substitute member of Borrower,
effective as of the occurrence of the event that terminated the continued membership of such member
in Borrower;

          (C) the bankruptcy of Sole Member or a Special Member shall not cause such member or Special
Member, respectively, to cease to be a member of Borrower and upon the occurrence of such an event,
the business of Borrower shall continue without dissolution;

          (D) in the event of dissolution of Borrower, Borrower shall conduct only such activities as
are necessary to wind up its affairs (including the sale of the assets of Borrower in an orderly
manner), and the assets of Borrower shall be applied in the manner, and in the order of priority,
set forth in Section 18 804 of the Act; and

          (E) to the fullest extent permitted by law, each of Sole Member and the Special Members shall
irrevocably waive any right or power that they might have to cause Borrower or any of its assets to
be partitioned, to cause the appointment of a receiver for all or any portion of the assets of
Borrower, to compel any sale of all or any portion of the assets of Borrower pursuant to any
applicable law or to file a complaint or to institute any proceeding at law or in equity to cause
the dissolution, liquidation, winding up or termination of Borrower.

“Bankruptcy Action” means, with respect to any Person, if such Person

     (i) makes an assignment for the benefit of creditors,

     (ii) files a voluntary petition in bankruptcy,

     (iii) is adjudged a bankrupt or insolvent, or has entered against it an order for relief, in
any bankruptcy or insolvency proceedings,

     (iv) consents to or files a petition or answer seeking for itself any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief under any
statute, law or regulation,

     (v) files an answer or other pleading admitting or failing to contest the material allegations
of a petition filed against it in any bankruptcy or insolvency proceeding,

Schedule 4 - 6

 

     (vi) seeks, consents to or acquiesces in the appointment of a trustee, receiver, liquidator,
sequestrator, custodian or any similar official of or for such Person or of all or any substantial
part of its properties,

     (vii) one hundred twenty (120) days after the commencement of any proceeding against such
Person seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or
similar relief under any statute, law or regulation, if the proceeding has not been dismissed,

     (viii) within ninety (90) days after the appointment without such Person’s consent or
acquiescence of a trustee, receiver or liquidator of such Person or of all or any substantial part
of its properties, the appointment is not vacated or stayed, or within ninety (90) days after the
expiration of any such stay, the appointment is not vacated or

     (ix) takes any action in furtherance of any of the foregoing.

Schedule 4 - 7

 

Schedule 5

Allocated Loan Amounts

	 	 	 	 	 
	Property	 	Loan Allocation	 
	T-Mobile Property
	 	$	9,032,280	 
	Wohlert Property
	 	$	747,270	 
	Growth Property
	 	$	779,760	 
	Rock Falls Property
	 	$	714,780	 
	Converting Property
	 	$	3,625,910	 
	 
	 	 	 
	Total
	 	$	14,900,000	 

Schedule 5 - 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]