Document:

EX-10.2

AMENDED AND RESTATED LOAN AGREEMENT

by and among

HF LOGISTICS-SKX T1, LLC, a Delaware limited liability company

as Borrower

and

BANK OF AMERICA, N.A.,

a national banking association

as Administrative Agent

and

The Other Financial Institutions

Party Hereto

Dated as of August 12, 2015

Merrill Lynch Pierce Fenner & Smith Incorporated

as

Sole Lead Arranger and Sole Bookrunner

TABLE OF CONTENTS

Page

EXHIBITS

	 	 	 	 	 
	EXHIBIT A

EXHIBIT B

EXHIBIT C

EXHIBIT D

EXHIBIT E

EXHIBIT F

EXHIBIT G

EXHIBIT H

EXHIBIT I

EXHIBIT J

EXHIBIT K-1

EXHIBIT K-2

EXHIBIT K-3

EXHIBIT K-4

EXHIBIT L

EXHIBIT M

EXHIBIT N

EXHIBIT O

EXHIBIT P

EXHIBIT Q

EXHIBIT R

EXHIBIT S
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	 	Legal Description of Land

Definitions and Financial Statements

Conditions Precedent to the Advance of the Loan

Survey Requirements

Leasing and Tenant Matters

Assignment and Assumption

Note

Schedule of Lenders

Swap Contracts

Financial Covenants

Form of U.S. Tax Compliance Certificate (For Foreign

Lenders That Are Not Partnerships For U.S. Federal Income

Tax Purposes)

Form of U.S. Tax Compliance Certificate (For Foreign

Participants That Are Not Partnerships For U.S. Federal

Income Tax Purposes)

Form of U.S. Tax Compliance Certificate (For Foreign

Participants That Are Partnerships For U.S. Federal Income

Tax Purposes)

Form of U.S. Tax Compliance Certificate (For Foreign

Lenders That Are Partnerships For U.S. Federal Income Tax

Purposes)

Permitted Encumbrances

Intentionally Omitted

Structure Chart

Rent Roll

Intentionally Omitted

Form of Compliance Certificates

Extension Conditions

Form of Secured Party Designation Notice

AMENDED AND RESTATED LOAN AGREEMENT

THIS AMENDED AND RESTATED LOAN AGREEMENT (“Agreement”) is made by and among each
lender from time to time a party hereto (individually, a “Lender” and collectively, the
“Lenders”), and BANK OF AMERICA, N.A., a national banking association as Administrative
Agent, and HF LOGISTICS-SKX T1, LLC, a Delaware limited liability company (“Borrower”), who
agree as follows:

ARTICLE 1 — THE LOAN

1.1 General Information and Exhibits. This Agreement includes all of the Exhibits listed
below, all of which Exhibits are attached hereto and made a part hereof for all purposes. Borrower
and Lenders agree that if any Exhibit attached to this Agreement contains blanks, the same shall be
completed correctly and in accordance with this Agreement prior to or at the time of the execution
and delivery thereof.

	 	 	 	 	 	 	 
	     

     

     

     

     

     

     

     

     

     
	 	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

Exhibit I

Exhibit J

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	 	Legal Description of the Land

Definitions and Financial Statements

Conditions Precedent to the Advance of the Loan

Survey Requirements

Leasing and Tenant Matters

Assignment and Assumption

Note

Schedule of Lenders

Swap Contracts

Financial Covenants

	 	 	 	       Exhibit K-1 — Form of U.S. Tax Compliance Certificate (For Foreign Lenders That
Are Not Partnerships For U.S. Federal Income Tax Purposes)

	 	 	 	       Exhibit K-2 — Form of U.S. Tax Compliance Certificate (For Foreign Participants
That Are Not Partnerships For U.S. Federal Income Tax Purposes)

	 	 	 	       Exhibit K-3 — Form of U.S. Tax Compliance Certificate (For Foreign Participants
That Are Partnerships For U.S. Federal Income Tax Purposes)

	 	 	 	       Exhibit K-4 — Form of U.S. Tax Compliance Certificate (For Foreign Lenders That
Are Partnerships For U.S. Federal Income Tax Purposes)

	 	 	 	 	 	 	 
	     

     

     

     

     

     

     

     
	 	Exhibit L

Exhibit M

Exhibit N

Exhibit O

Exhibit P

Exhibit Q

Exhibit R

Exhibit S

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	 	Permitted Encumbrances

Intentionally Omitted

Structure Chart

Rent Roll

Intentionally Omitted

Form of Compliance Certificates

Extension Conditions

Form of Secured Party Designation Notice

The Exhibits contain other terms, provisions and conditions applicable to the Loan.
Capitalized terms used in this Agreement shall have the meanings assigned to them in Exhibit
B. This Agreement and the other Loan Documents, which must be in form, detail and substance
satisfactory to Administrative Agent and Lenders, evidence the agreements of Borrower,
Administrative Agent and Lenders with respect to the Loan. Borrower shall comply with all of the
Loan Documents.

This Agreement amends and restates in its entirety that certain Construction Loan Agreement
dated April 30, 2010 by and among Borrower, Bank of America, N.A., as administrative agent, for the
benefit of itself as a lender and for the other lenders from time to time a party thereto, and
Raymond James Bank, FSB as a lender (the “Original Loan Agreement”), as modified by Letter
Agreement dated June 11, 2010, Letter Agreement dated July 15, 2010, Letter Agreement dated
September 2, 2010, and Letter Agreement dated May 9, 2012, each by and among Borrower and Bank of
America, N.A., as administrative agent, for the benefit of itself as a lender and for the other
lenders, and Raymond James Bank, FSB as a lender, as further modified by Loan Extension Agreement
effective as of October 30, 2012 entered into by and among Borrower, Bank of America, N.A. as
administrative agent and as a lender and Raymond James Bank, N.A., (formerly known as Raymond James
Bank, FSB) as a lender, and as further modified by Modification to Construction Loan Agreement and
Other Loan Documents dated as of November 16, 2012 (the “Modification Agreement”), by and
among Borrower, Bank of America, N.A. as administrative agent for the benefit of itself as a
lender and for the other lenders, Raymond James Bank, N.A. as a lender and OneWest Bank, FSB (now
known as CIT Bank, N.A.) as a lender (all of the foregoing, collectively, the “Prior Loan
Agreement”) and hereby supersedes and the Prior Loan Agreement. The Original Loan Agreement
was entered into in connection with a loan made by Lenders to Borrower in the principal amount of
$55,000,000 (the “Original Loan”) and secured by, among other things, the Property. In
connection with the Modification Agreement, the principal balance of the Original Loan was
increased to $80,000,000 (the “Existing Loan”), and which Existing Loan, immediately prior
to this amendment and restatement, had an outstanding principal balance of $70,000,000. The Loan
is a modification and renewal of the Existing Loan and is made subject to the terms and conditions
of this Agreement and the other Loan Documents. The execution and delivery of this Agreement shall
not constitute a novation of the debt evidenced and secured by the Loan Documents.

1.2 Purpose. The proceeds of the Loan shall be used by Borrower to pay costs related to
the renewal of the indebtedness with respect to the Property, pursuing Borrower’s business at the
Property, paying fees, costs and expenses relating to the Loan and for working capital purposes;
provided, however, Borrower shall not in any case directly or indirectly use the proceeds of the
Loan, or lend, contribute or otherwise make available such proceeds to any individual or entity, to
fund any activities of or business with any individual or entity, or in any Designated
Jurisdiction, that, at the time of such funding, is the subject of Sanctions or in any other manner
that will result in a violation by any individual or entity (including any individual or entity
participating in the transaction, whether as Lender, Administrative Agent or otherwise) of
Sanctions. It is understood that Borrower may distribute the proceeds of the Loan to its sole
member (HF Logistics-SKX, LLC) which may then use the proceeds for the purposes set forth above or
for any other purpose.

1.3 Commitment to Lend. Borrower agrees to borrow from each Lender, and each Lender
severally agrees to make advances of its Pro Rata Share of the Loan proceeds to Borrower in amounts
at any one time outstanding not to exceed such Lender’s Pro Rata Share of the Loan and (except for
Administrative Agent with respect to Administrative Agent Advances), on the terms and subject to
the conditions set forth in this Agreement and Exhibit C. Lenders’ Commitments to lend
pursuant to this Agreement shall expire and terminate automatically (a) if the Loan is prepaid in
full, and (b) upon the occurrence of a Default, and (c) on the Maturity Date. The Loan is not
revolving. Any amount repaid may not be reborrowed.

1.4 Interest Rates.The unpaid principal balance of the Loan from day to day outstanding
which is not past due, shall bear interest at a fluctuating rate of interest equal to the LIBOR
Rate, computed as provided in Section 1.4.1 below.

1.4.1 Computations and Determinations. All computations of interest at the Base Rate (to
the extent applicable) shall be made on the basis of a year of 365 or 366 days, as the case may be,
and actual days elapsed.  All other computations of fees and interest shall be made on the basis of
a 360-day year and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Administrative Agent shall determine
the interest rate(s) applicable to the Principal Debt in accordance with this Agreement and its
determination thereof shall be conclusive in the absence of manifest error.  The books and records
of Administrative Agent shall be prima facie evidence of all sums owing to Lenders from
time to time under the Loan, but the failure to record any such information shall not limit or
affect the obligations of Borrower under the Loan Documents.

1.4.2 Intentionally Omitted.

1.4.3 Reserves on LIBOR Rate Principal. Borrower shall pay to each Lender, as long as such
Lender shall be required to maintain reserves with respect to liabilities or assets consisting of
or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
additional interest on the unpaid principal amount of the Loan bearing interest at the LIBOR Daily
Floating Rate equal to the actual costs of such reserves allocated to such principal by such Lender
(as determined by such Lender in good faith, which determination shall be conclusive), which shall
be due and payable on each date on which interest is payable on the Loan, provided Borrower
shall have received at least 10 days’ prior notice (with a copy to Administrative Agent) of such
additional interest from such Lender.  If a Lender fails to give notice 10 days prior to the
relevant interest payment date, such additional interest shall be due and payable 10 days from
receipt of such notice.

1.4.4 Late Charge. If Borrower shall fail to make any payment due hereunder or under the
terms of any Note within fifteen (15) days after the date such payment is due, Borrower shall pay
to the applicable Lender or Lenders on demand a late charge equal to four percent (4%) of such
payment. Such fifteen (15) day period shall not be construed as in any way extending the due date
of any payment. The “late charge” is imposed for the purpose of defraying the expenses of a Lender
incident to handling such defaulting payment. This charge shall be in addition to, and not in lieu
of, any other amount that Lenders may be entitled to receive or action that Administrative Agent
and Lenders may be authorized to take as a result of such late payment, including any other remedy
Lenders may have and any fees and charges of any agents or attorneys which Administrative Agent or
Lenders may employ upon the occurrence of a Default, whether authorized herein or by Law.

1.4.5 Default Rate. After the occurrence and during the continuance of a Default
(including the expiration of any applicable cure period), upon the request of the Required Lenders,
Administrative Agent, without notice or demand, may raise the rate of interest accruing on the
outstanding principal balance under any Loan Document by three hundred (300) basis points above the
rate of interest otherwise applicable (“Default Rate”), independent of whether
Administrative Agent accelerates the outstanding principal balance under any Loan Document.

1.5 Prepayment. Borrower may prepay the principal balance of the Loan, in full at any time
or in part from time to time, without fee, premium or penalty, provided that: (a) Administrative
Agent shall have actually received written notice from Borrower of (i) Borrower’s intent to prepay,
(ii) the amount of principal which will be prepaid (the “Prepaid Principal”), and (iii) the
date on which the prepayment will be made; (b) each prepayment shall be in the amount of $1,000 or
a larger integral multiple of $1,000 (unless the prepayment retires the outstanding balance of the
Loan in full); (c) each prepayment shall be in the amount of 100% of the Prepaid Principal, plus
accrued unpaid interest thereon to the date of prepayment, plus any other sums which have become
due to Administrative Agent and Lenders under the Loan Documents on or before the date of
prepayment but have not been paid and (d) concurrently with such prepayment, Borrower shall
(x) reduce the notional amount of any outstanding Swap Contract by the amount of such prepayment,
(y) pay all sums, if any, payable pursuant to such Swap Contract with respect to such reduction and
(z) provide evidence to Administrative Agent of Borrower’s compliance with the foregoing
clauses (x) and (y). If the Loan is prepaid in full, any commitment of Lenders (if
any) for further advances shall automatically terminate. Notwithstanding the foregoing, if a
Default shall have occurred and be continuing as of the date that any prepayment is made,
Administrative Agent may apply such prepayment to all or such portions of the Indebtedness as
Administrative Agent determines in its sole discretion.

1.6 Payment Schedule and Maturity Date.

(a) The entire principal balance of the Loan then unpaid and all accrued interest then unpaid
shall be due and payable in full on the Maturity Date. Accrued unpaid interest shall be due and
payable in arrears on the 15th day of the first calendar month after the Closing Date
and on the same day of each succeeding calendar month thereafter until all principal and accrued
interest owing on the Loan shall have been fully paid and satisfied.

(b) Subject to the conditions set forth in Exhibit R, Borrower shall have one (1)
option to extend the then Maturity Date. Such option shall extend the Maturity from the Initial
Maturity Date to August 12, 2022 (such extension period is referred to herein as the “Extension
Term”).

(c) Principal payments on the Loan in the amount of One Hundred Twenty One Thousand Three
Hundred and No/100 Dollars ($121,300.00) shall be due and payable on the fifteenth (15) day of the
first calendar month after the Closing Date and on the same day of each succeeding calendar month
thereafter until all principal owing on the Loan shall have been fully paid and satisfied.

1.7 Payments.

(a) All payments by Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all
payments by Borrower hereunder shall be made to Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at Administrative Agent’s Office in U.S. Dollars
and in immediately available funds not later than 12:00 p.m. (Administrative Agent’s Time) on the
date specified herein. Administrative Agent will promptly distribute to each Lender its Pro Rata
Share (or other applicable share as provided herein) of such payment in like funds as received by
wire transfer to such Lender’s Lending Office. All payments received by Administrative Agent after
12:00 p.m. (Administrative Agent’s Time) shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue. If any payment to be made by
Borrower shall come due on a day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected in computing interest or
fees, as the case may be.

(b) For the avoidance of doubt, Administrative Agent will distribute payments to each Lender,
(i) on the date of receipt, if Administrative Agent receives such funds on or before 12:00 p.m.
(Administrative Agent’s Time), or (ii) on the Business Day following the date of receipt, if
Administrative Agent receives such funds after 12:00 p.m. (Administrative Agent’s Time). If
Administrative Agent fails to timely pay any amount to any Lender in accordance with this
Section 1.7, Administrative Agent shall pay to such Lender interest on such amount at the
greater of the Federal Funds Rate and a rate determined by Administrative Agent in accordance with
banking industry rules on interbank compensation, for each day from the day such amount was to be
paid until it is paid to such Lender. Unless Administrative Agent shall have received notice from
Borrower prior to the date on which any payment is due to Administrative Agent for the account of
Lenders hereunder that Borrower will not make such payment, Administrative Agent may assume that
Borrower has made such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to Lenders the amount due. In such event, if Borrower has not in fact made
such payment, then each of the Lenders severally agrees to repay to Administrative Agent forthwith
on demand the amount so distributed to such Lender immediately available funds with interest
thereon, for each day from and including the date such amount is distributed to it to but excluding
the date of payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on interbank
compensation.

(c) A notice of Administrative Agent to any Lender or to Borrower with respect to any amount
owing under this Section 1.7 shall be conclusive, absent manifest error.

1.8 Evidence of Debt. Amounts of the Loan funded by each Lender shall be evidenced by one
or more accounts or records maintained by such Lender and by Administrative Agent in the ordinary
course of business. The accounts or records maintained by Administrative Agent and each Lender
shall be conclusive, in the absence of manifest error, of the amounts of the Loan funded by Lenders
to Borrower, the interest and payments thereon, and all other sums owing to Administrative Agent
and each Lender from time to time under the Loan Documents. Any failure to so record such
information or any error in doing so shall not, however, limit or otherwise affect the obligation
of Borrower hereunder to pay any amount owing with respect to the Indebtedness or the obligations
of the Property under the Loan Documents. In the event of any conflict between the accounts and
records maintained by any Lender and the accounts and records of Administrative Agent in respect of
such matters, the accounts and records of Administrative Agent shall control in the absence of
manifest error. Each Lender may attach schedules to its Note(s) and endorse thereon the date,
amount and maturity of the applicable Note and payments with respect thereto.

	 	 	 	 	 	 	 
	 	1.9	 	 	Intentionally Omitted.

	 	 	 	 	 

	 	1.10	 	 	Intentionally Omitted.

	 	 	 	 	 

	ARTICLE 2 —	 	TAXES, YIELD PROTECTION, UNAVAILABILITY AND ILLEGALITY
	 	2.1	 	 	Taxes.

	 	

	 	 	 	 	 

	 	

(a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.

(i) Any and all payments by or on account of any obligation of Borrower or Guarantor
under any Loan Document shall be made without deduction or withholding for any Taxes,
except as required by applicable Laws. If any applicable Laws (as determined in the good
faith discretion of Administrative Agent) require the deduction or withholding of any Tax
from any such payment by Administrative Agent or Borrower or Guarantor, then
Administrative Agent or Borrower or Guarantor shall be entitled to make such deduction or
withholding, upon the basis of the information and documentation to be delivered pursuant
to Section 2.1(e).

(ii) If Borrower or Guarantor or Administrative Agent shall be required by the Code
to withhold or deduct any Taxes, including both United States Federal backup withholding
and withholding taxes, from any payment, then (A) Administrative Agent shall withhold or
make such deductions as are determined by Administrative Agent to be required based upon
the information and documentation it has received pursuant to Section 2.1(e),
(B) Administrative Agent shall timely pay the full amount withheld or deducted to the
relevant Governmental Authority in accordance with the Code, and (C) to the extent that
the withholding or deduction is made on account of Indemnified Taxes, the sum payable by
Borrower or Guarantor, as applicable, shall be increased as necessary so that after any
required withholding or the making of all required deductions (including deductions
applicable to additional sums payable under this Section 2.1) the applicable
Recipient receives an amount equal to the sum it would have received had no such
withholding or deduction been made.

(iii) If Borrower or Guarantor or Administrative Agent shall be required by any
applicable Laws other than the Code to withhold or deduct any Taxes from any payment,
then (A) Borrower or Guarantor or Administrative Agent, as required by such Laws, shall
withhold or make such deductions as are determined by it to be required based upon the
information and documentation it has received pursuant to Section 2.1(e),
(B) Borrower or Guarantor or Administrative Agent, to the extent required by such Laws,
shall timely pay the full amount withheld or deducted to the relevant Governmental
Authority in accordance with such Laws, and (C) to the extent that the withholding or
deduction is made on account of Indemnified Taxes, the sum payable by Borrower or
Guarantor, as applicable, shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions applicable to
additional sums payable under this Section 2.1) the applicable Recipient receives
an amount equal to the sum it would have received had no such withholding or deduction
been made. Borrower shall cause Guarantor to comply with its obligations pursuant to
this Section 2.1.

(b) Payment of Other Taxes by Borrower or Guarantor. Without limiting the provisions
of Section 2.1(a) above, Borrower shall timely pay, and shall cause Guarantor to timely
pay, to the relevant Governmental Authority in accordance with applicable Law, or at the option of
Administrative Agent reimburse within ten (10) days after demand for the payment of, any Other
Taxes.

(c) Tax Indemnifications.

(i) Borrower shall, and does hereby indemnify each Recipient, and shall make payment
in respect thereof within ten (10 ) days after demand therefor, for the full amount of
any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable
to amounts payable under this Section 2.1) payable or paid by such Recipient or
required to be withheld or deducted from a payment to such Recipient, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability
delivered to Borrower by a Lender (with a copy to Administrative Agent), or by
Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive
absent manifest error. Borrower shall, and does hereby indemnify Administrative Agent,
and shall make payment in respect thereof within ten (10) days after demand therefor, for
any amount which a Lender for any reason fails to pay indefeasibly to Administrative
Agent as required pursuant to Section 2.1(c)(ii).

(ii) Each Lender shall, and does hereby, severally indemnify, and shall make payment
in respect thereof within ten (10) days after demand therefor, (A) Administrative Agent
against any Indemnified Taxes attributable to such Lender (but only to the extent that
Borrower has not already indemnified Administrative Agent for such Indemnified Taxes and
without limiting the obligation of Borrower to do so), (B) Administrative Agent and
Borrower, as applicable, against any Taxes attributable to such Lender’s failure to
comply with the provisions of Section 9.5(d) relating to the maintenance of a
Participant Register and (C) Administrative Agent and Borrower and Guarantor, as
applicable, against any Excluded Taxes attributable to such Lender, in each case, that
are payable or paid by Administrative Agent or Borrower or Guarantor in connection with
any Loan Document, and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability
delivered to any Lender by Administrative Agent shall be conclusive absent manifest
error. Each Lender hereby authorizes Administrative Agent to set off and apply any and
all amounts at any time owing to such Lender as the case may be, under this Agreement or
any other Loan Document against any amount due to Administrative Agent under this
Section 2.1(c)(ii).

(d) Evidence of Payments. Upon written request by Borrower or Administrative Agent,
as the case may be, after any payment of Taxes by Borrower or Guarantor or by Administrative Agent
to a Governmental Authority as provided in this Section 2.1, Borrower shall deliver, or
shall cause Guarantor to deliver, to Administrative Agent or Administrative Agent shall deliver to
Borrower, as the case may be, the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of any return required by Laws to report
such payment or other evidence of such payment reasonably satisfactory to Borrower or
Administrative Agent, as the case may be.

(e) Status of Lenders; Tax Documentation.

(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax
with respect to payments made under any Loan Document shall deliver to Borrower and
Administrative Agent, at the time or times reasonably requested by Borrower or
Administrative Agent, such properly completed and executed documentation reasonably
requested by Borrower or Administrative Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, any Lender, if
reasonably requested by Borrower or Administrative Agent, shall deliver such other
documentation prescribed by applicable Law or reasonably requested by Borrower or
Administrative Agent as will enable Borrower, Guarantor or Administrative Agent to
determine whether or not such Lender is subject to backup withholding or information
reporting requirements. Notwithstanding anything to the contrary in the preceding two
sentences, the completion, execution and submission of such documentation (other than
such documentation set forth in clauses (A), (B) and (D) of
Section 2.1(e)(ii)) shall not be required if in the Lender’s reasonable judgment
such completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would materially prejudice the legal or commercial
position of such Lender.

(ii) Without limiting the generality of the foregoing, in the event that Borrower or
Guarantor is a U.S. Person,

(A) any Lender that is a U.S. Person shall deliver to Borrower and
Administrative Agent on or prior to the date on which such Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable written
request of Borrower or Administrative Agent), executed originals of IRS Form W-9
certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B) any Foreign Lender shall, to the extent it is legally entitled to do so,
deliver to Borrower and Administrative Agent (in such number of copies as shall be
requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the
reasonable written request of Borrower or Administrative Agent), whichever of the
following is applicable:

(I) in the case of a Foreign Lender claiming the benefits of an income
tax treaty to which the United States is a party (x) with respect to
payments of interest under any Loan Document, executed originals of IRS Form
W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “interest” article of such tax treaty and
(y) with respect to any other applicable payments under any Loan Document,
IRS Form W-8BEN establishing an exemption from, or reduction of, U.S.
federal withholding Tax pursuant to the “business profits” or
“other income” article of such tax treaty;

(II) executed originals of IRS Form W-8ECI;

(III) in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under Section 881(c) of the Code, (x) a
certificate substantially in the form of Exhibit K-1 to the effect
that such Foreign Lender is not a “bank” within the meaning of Section
881(c)(3)(A) of the Code, and “10 percent shareholder” of Borrower within
the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign
corporation” described in Section 881(c)(C) of the Code (a “U.S. Tax
Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN;
or

(IV) to the extent a Foreign Lender is not the beneficial owner,
executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of
Exhibit K-2 or Exhibit K-3, IRS Form W-9, and/or other
certification documents from each beneficial owner, as applicable;
provided that if the Foreign Lender is a partnership and one or more
direct or indirect partners of such Foreign Lender are claiming the
portfolio interest exemption, such Foreign Lender may provide a U.S. Tax
Compliance Certificate substantially in the form of Exhibit K-4 on
behalf of each such direct and indirect partner.

(C) any Foreign Lender shall, to the extent it is legally entitled to do so,
deliver to Borrower and Administrative Agent (in such number of copies as shall be
requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the
reasonable written request of Borrower or Administrative Agent), executed originals
of any other form prescribed by applicable Law as a basis for claiming exemption
from or a reduction in U.S. federal withholding Tax, duly completed, together with
such supplementary documentation as may be prescribed by applicable Law to permit
Borrower or Administrative Agent to determine the withholding or deduction required
to be made; and

(D) if a payment made to a Lender under any Loan Document would be subject to
U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply
with the applicable reporting requirements of FATCA (including those contained in
Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to
Borrower and Administrative Agent at the time or times reasonably requested by
Borrower or Administrative Agent such documentation prescribed by applicable Law
(including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such
additional documentation reasonably requested by Borrower or Administrative Agent as
may be necessary for Borrower, Guarantor and Administrative Agent to comply with
their obligations under FATCA and to determine that such Lender has complied with
such Lender’s obligations under FATCA or to determine the amount to deduct and
withhold from such payment. Solely for purposes of this clause (D), “FATCA”
shall include any amendments made to FATCA after the Closing Date.

(iii) Each Lender agrees that if any form or certification it previously delivered
pursuant to this Section 2.1 expires or becomes obsolete or inaccurate in any
respect, it shall update such form or certification or promptly notify Borrower and
Administrative Agent in writing of its legal inability to do so.

(f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender.
If any Recipient determines, in its sole discretion exercised in good faith, that it has received a
refund of any Taxes as to which it has been indemnified by Borrower or Guarantor with respect to
which Borrower or Guarantor has paid additional amounts pursuant to this Section 2.1, it
shall promptly pay to Borrower or Guarantor an amount equal to such refund (but only to the extent
of indemnity payments made, or additional amounts paid, by Borrower or Guarantor under this
Section 2.1 with respect to the Taxes giving right to such refund), net of all
out-of-pocket expenses (including Taxes) incurred by such Recipient, and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund),
provided that Borrower or Guarantor, upon the written request of the Recipient, agrees to
repay the amount paid over to Borrower or Guarantor (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Recipient in the event the Recipient is
required to repay such refund to such Governmental Authority. Notwithstanding anything to the
contrary in this Section 2.1(f), in no event will the applicable Recipient be required to
pay any amount to Borrower or Guarantor pursuant to this Section 2.1(f) the payment of
which would place the Recipient in a less favorable net after-Tax position than such Recipient
would have been in if the Tax subject to indemnification and giving rise to such refund had not
been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts
with respect to such Tax had never been paid. This Section 2.1(f) shall not be construed
to require any Recipient to make available its tax returns (or any other information relating to
its taxes that it deems confidential) to Borrower or Guarantor or any other Person.

(g) Survival. Each party’s obligations under this Section 2.1 shall survive
the resignation or replacement of Administrative Agent, any assignment of rights by, or the
replacement of, a Lender, the termination of the Commitments, the termination of this Agreement and
the repayment, satisfaction or discharge of all other Obligations.

2.2 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its Lending Office to
perform any of its obligations hereunder or to make, maintain or fund or charge interest with
respect to any Loan advance or to determine or charge interest rates based upon the LIBOR Daily
Floating Rate, or any Governmental Authority has imposed material restrictions on the authority of
such Lender to purchase or sell, or to take deposits of, U.S. Dollars in the London interbank
eurodollar market, then on notice thereof by such Lender to Borrower through Administrative Agent,
any obligation of such Lender to make, maintain, fund or charge interest with respect to any such
Loan advance at the LIBOR Rate shall be suspended, in each case until such Lender notifies
Administrative Agent and Borrower that the circumstances giving rise to such determination no
longer exist.  Upon receipt of such notice, Borrower shall, upon demand from such Lender (with a
copy to Administrative Agent), immediately prepay or, if applicable, convert all LIBOR Rate
Principal to Base Rate Principal.  Upon any such prepayment or conversion, Borrower shall also pay
accrued interest on the amount so prepaid or converted.

2.3 Inability to Determine Rates. If (a) Administrative Agent determines that (i) U.S.
Dollar deposits are not being offered to banks in the London interbank eurodollar market in the
amount of any proposed or existing advance of the Loan at the time of determination for terms equal
to one (1) month, or (ii) adequate and reasonable means do not exist for determining the LIBOR
Daily Floating Rate for proposed or existing advances of the Loan (in each case with respect to
clause (a)(i) above, “Impacted Advances”), or (b) Administrative Agent or Required
Lenders determine that for any reason the LIBOR Rate does not adequately and fairly reflect the
cost to such Lenders of funding the Loan, Administrative Agent will promptly so notify Borrower and
each Lender.  Thereafter, the obligation of Lenders to make or maintain advances of the Loan at the
LIBOR Rate shall be suspended, in each case until Administrative Agent (upon the instruction of
Required Lenders) revokes such notice.  During the period of such suspension, all proposed advances
and all amounts from day to day outstanding which are not past due, shall bear interest at the Base
Rate.

Notwithstanding the foregoing, if Administrative Agent has made the determination described in
subsection (a)(i) of this Section 2.3, Administrative Agent, in consultation with
Borrower and the affected Lenders, may establish an alternative interest rate for the Impacted
Advances, in which case, such alternative rate of interest shall apply with respect to the Impacted
Advances until (1) Administrative Agent revokes the notice delivered with respect to the Impacted
Advances under subsection (a) of the first sentence of this Section 2.3, (2)
Administrative Agent or Required Lenders notify Administrative Agent and Borrower that such
alternative interest rate does not adequately and fairly reflect the cost to such Lenders of
funding the Impacted Advances, or (3) any Lender determines that any Law has made it unlawful, or
that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable
Lending Office to make, maintain or fund Loan advances whose interest is determined by reference to
such alternative rate of interest or to determine or charge interest rates based upon such rate or
any Governmental Authority has imposed material restrictions on the authority of such Lender to do
any of the foregoing and provides Administrative Agent and Borrower written notice thereof.

2.4 Increased Costs.

(a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the
account of, or credit extended or participated in by, any Lender (except any reserve
requirement reflected in the LIBOR Rate;

(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes
described in clauses (b) through (d) of the definition of Excluded Taxes
and (C) Connection Income Taxes) on its loans, loan principal, letters of credit,
commitments, or other obligations, or its deposits, reserves, other liabilities or
capital attributable thereto; or

(iii) impose on any Lender or the London interbank eurodollar market any other
condition, cost or expense affecting this Agreement or any Note;

and the result of any of the foregoing shall be to increase the cost to such Lender of making,
converting to, continuing or maintaining any advance or other portion of the Loan the interest on
which is determined by reference to the LIBOR Daily Floating Rate (or of maintaining its obligation
to make any such advance), or to reduce the amount of any sum received or receivable by such Lender
hereunder (whether of principal, interest or any other amount) then Borrower will pay to such
Lender such additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

(b) Capital Requirements. If any Lender determines that any Change in Law affecting
such Lender or any Lending Office of such Lender or such Lender’s holding company, if any,
regarding capital or liquidity requirements has or would have the effect of reducing the rate of
return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a
consequence of this Agreement, any Note, the Commitments of such Lender or the advances made by
such Lender, to a level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy), then from time to time
Borrower will pay to such Lender, such additional amount or amounts as will compensate such Lender
or such Lender’s holding company for any such reduction suffered.

(c) Certificates for Reimbursement. A certificate of a Lender setting forth the
amount or amounts necessary to compensate such Lender or its holding company, as the case may be,
as specified in Section 2.4(a) or Section 2.4(b) and delivered to Borrower shall be
conclusive absent manifest error. Borrower shall pay such Lender, as the case may be, the amount
shown as due on any such certificate within ten (10) days after receipt thereof.

(d) Delay in Requests; Survival. Failure or delay on the part of any Lender to demand
compensation pursuant to the foregoing provisions of this Section 2.4 shall not constitute
a waiver of such Lender’s right to demand such compensation, provided that Borrower shall
not be required to compensate a Lender pursuant to the foregoing provisions of this Section
2.4 for any increased costs incurred or reductions suffered more than nine (9) months prior to
the date that such Lender notifies Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine
(9) month period referred to above shall be extended to include the period of retroactive effect
thereof). Subject to the foregoing, all of Borrower’s obligations under this Section  2.4
shall survive payment in full, satisfaction or discharge of the Indebtedness, the resignation or
removal of Administrative Agent or replacement of any Lender, and any release, enforcement or
termination of this Agreement or of any other Loan Documents.

2.5 Intentionally Omitted.

2.6 Mitigation Obligations; Replacement of Lenders.

(a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 2.4, or requires Borrower to pay any Indemnified Taxes or additional amounts
to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.1, or if any Lender gives a notice pursuant to Section 2.2, then at the
written request of Borrower such Lender shall, as applicable, use reasonable efforts to designate a
different Lending Office for funding or booking its advances hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 2.1 or 2.4 in the future, or eliminate the need for the notice pursuant
to Section 2.2, and (ii) in each case, would not subject such Lender, as the case may be,
to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender, as
the case may be. Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment within ten (10) days of written demand
of such Lender.

(b) Replacement of Lenders. If any Lender requests compensation under Section
2.4, or if Borrower is required to pay any Indemnified Taxes or additional amounts to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.1
and, in each case, such Lender has declined or is unable to designate a different lending office in
accordance with Section 2.6(a), Borrower may replace such Lender in accordance with
Section 9.12.

2.7 Survival. All of Borrower’s obligations under this Article 2 shall survive the
resignation or replacement of Administrative Agent, any assignment of rights by, or the replacement
of, a Lender, the termination of the Commitments, the termination of this Agreement and the
repayment, satisfaction or discharge of all other Obligations.

	 	 	 
	ARTICLE 3 —

ARTICLE 4 —

	 	INTENTIONALLY OMITTED

AFFIRMATIVE COVENANTS

4.1 Existence; Qualifications.  Borrower shall do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its existence and comply in all
material respects with all Laws applicable to it, shall not cease to be validly existing and in
good standing under the laws of the State of Delaware or cease to be authorized to do business in,
and if required by Law, in good standing in, each state in which the Property is located. In the
event that Borrower shall fail to file certain administrative documentation or pay minor fees
required to maintain its good standing in the State of Delaware or its authority to do business in
the state in which the Property is located, then Borrower shall have the opportunity to cure such
failure so long as Borrower shall cure such failure within five (5) days notice thereof from such
applicable Governmental Authority. Borrower shall at all times maintain, preserve and protect all
material franchises and trade names used in connection with the operation of the Property. If
requested by Administrative Agent, Borrower shall provide a certification certifying that it is not
a foreign corporation, foreign partnership, foreign trust, foreign estate or nonresident alien or a
disregarded entity owned by any of them (as those terms are defined in the Code), together with
such additional information as Administrative Agent may reasonably request.

4.2 Maintenance, Repair and Restoration.

(a) Borrower shall keep the Property in such order, repair, operating condition and appearance
as is consistent with good management and operating practices for comparable competitive
properties, causing all necessary repairs, renewals, replacements, additions and improvements to be
promptly made with good quality materials and in a good and workmanlike manner, and shall not allow
the Property to be the subject of any waste or to be misused or abused or to deteriorate, subject,
however, to the other provisions of this Agreement and the other Loan Documents requiring consent
or approval of Administrative Agent. If any act or occurrence of any kind or nature (including any
condemnation or any casualty for which insurance was not obtained or obtainable) shall result in
damage to or loss or destruction of the Property, Borrower shall give prompt notice thereof to
Administrative Agent and Borrower shall promptly, subject to Section 4.8 and 4.9,
at Borrower’s sole cost and expense and regardless of whether insurance or condemnation proceeds
(if any) shall be available or sufficient for the purpose pursuant to Section 4.8 or
4.9 or otherwise, secure the Property as necessary and commence and continue diligently to
completion to restore, repair, replace and rebuild the Property as nearly as possible to its value,
condition and character immediately prior to the damage, loss or destruction.

(b) Notwithstanding the foregoing, Borrower shall not, without the prior written consent of
Required Lenders, (i) remove from the Property any fixtures or personal property comprising
Collateral except such as is obsolete or no longer useful, or as is replaced by Borrower by an
article of equal suitability and value, owned by Borrower, free and clear of any lien or security
interest (except for that created by the Mortgage or any other Loan Document or other Permitted
Encumbrances), or (ii) make any alteration to the Property; provided, however, that
the consent of Required Lenders shall not be required in the case of (i) any alteration, the cost
of which, when aggregated with the total cost of all alterations in the applicable calendar year,
does not result in costs in excess of $5,000,000; (ii) any alteration required pursuant to any
Lease entered into in accordance with Exhibit E (including the Skechers Lease) and any
other provision of this Agreement and the other Loan Documents and (iii) any alteration required
for the maintenance and upkeep of the Property in accordance with the Loan Documents that could not
reasonably be expected to have a Material Adverse Effect.

(c) As a condition to the approval of Required Lenders under Section 4.2(b), Required
Lenders may, among other things, require that Borrower deliver to Administrative Agent as security
for the payment of the costs of the applicable work cash or other collateral, as reasonably
determined by Required Lenders.

(d) Prior to commencing any alteration that requires the consent of Required Lenders:

(i) Borrower shall have given Administrative Agent prior notice of same containing a
description of such alteration and Borrower’s good faith estimate of the cost thereof;

(ii) Borrower shall confirm in writing that such alteration shall not violate the terms
of any Law, Lease or Permitted Encumbrance, and could not reasonably be expected to have a
Material Adverse Effect;

(iii) if Required Lenders or Administrative Agent requests, Borrower shall have
delivered to Administrative Agent all plans, specifications and drawings and architect’s and
other construction contracts, if any, for such alteration; and

(iv) Borrower shall have delivered to Administrative Agent such other information and
documentation as Required Lenders or Administrative Agent may reasonably request regarding
such alteration.

(e) With respect to alterations which require the approval of the Required Lenders, the terms
and conditions of this Section 4.2(e) shall apply. Borrower shall, at Administrative
Agent’s request, inform Administrative Agent as to the progress of such alteration. Administrative
Agent may, but shall not be obligated, at Borrower’s expense, to inspect the work or cause an
inspection of the work by consultants engaged by Administrative Agent at Borrower’s expense. All
alterations shall be performed diligently and continuously to completion in a good and workmanlike
manner, in compliance with all applicable Laws in all material respects, and in compliance with all
applicable requirements of the Leases and Permitted Encumbrances, After completion of each
alteration, Borrower shall provide Administrative Agent with a copy of the as-built plans and
specifications for same, if any. Borrower shall maintain and make available to, or, at
Administrative Agent’s request, provide to Administrative Agent copies of (i) all plans,
specifications and drawings, including drawings that to reflect as-built conditions, substitutions
and changes pertaining to the performance of each alteration, or such other adequate records to
reflect as-built conditions, substitutions and changes, (ii) any contracts, bills of sale,
statements, receipts or vouchers pertaining to each alteration, and (iii) all books, contracts and
records of Borrower pertaining to each alteration, including all work done, labor performed or
materials furnished in connection therewith.

4.3 Operation of Property.

(a) Borrower will operate the Property in a manner and at a level consistent with good
management and operating practices for comparable competitive properties and will pay all fees or
charges of any kind in connection therewith. Borrower will use commercially reasonable efforts to
keep the Property occupied so as not to impair the insurance carried thereon. Borrower will not
use or occupy or conduct any activity on, or knowingly allow the use or occupancy of or the conduct
of any activity on, the Property in any manner which constitutes a public or private nuisance or
which makes void, voidable or cancelable, or increases the premium of, any insurance then in force
with respect thereto. Borrower will not do or knowingly suffer to be done any act whereby the
value of any part of the Property may be lessened. Borrower shall not commit, permit or knowingly
suffer to exist any act or omission, including any use or occupy of, or activity at or on, the
Property, which affords or may afford any Governmental Authority the right of forfeiture as against
the Property, or any part thereof or any monies paid in performance of Borrower’s obligations under
any of the Loan Documents.

(b) Borrower will preserve, protect, renew, extend and retain all requisite rights, powers,
authority, privileges and franchises which are necessary or required to carry on its business and
to own and operate the Property in accordance with the Leases, the Permitted Encumbrances and
otherwise in accordance with this Agreement, and all other material rights and privileges granted
for or applicable to the Property. Borrower will not initiate or permit any zoning
reclassification of the Property or seek any variance under existing zoning ordinances applicable
to the Property. Borrower shall not use or permit the use of the Property in such a manner which
would result in such use becoming a nonconforming use under applicable zoning ordinances or other
Law. If under applicable zoning provisions the use of all or any portion of the Property is or
shall become a nonconforming use, Borrower will not cause or permit the nonconforming use to be
discontinued or the nonconforming Improvement to be abandoned without the prior written consent of
Administrative Agent.

(c) Borrower will not hereafter impose any easement, restrictive covenant or encumbrance upon
the Property, execute or file any subdivision plat or condominium declaration affecting the
Property or consent to the annexation of the Property to any municipality, without the prior
written consent of Administrative Agent which consent shall not be unreasonably withheld. Without
the prior written consent of Administrative Agent, there shall be no drilling or exploration for or
extraction, removal or production of any mineral, hydrocarbon, gas, natural element, compound or
substance (including sand and gravel) from the surface or subsurface of the Land regardless of the
depth thereof or the method of mining or extraction thereof.

(d) Borrower will cause all debts and liabilities of any character (including without all
debts and liabilities for labor, material and equipment (including software embedded therein) and
all debts and charges for utilities servicing the Property) incurred in the construction,
maintenance, operation and development of the Property to be promptly paid.

4.4 Intentionally Omitted.

4.5 Inspection.  Administrative Agent and its agents may enter upon the Property to
inspect the Property during normal business hours, upon reasonable notice and subject to the rights
of tenants and reasonable and customary safety rules and regulations, unless Administrative Agent
reasonably deems such inspection is an emergency, in which event Borrower shall provide
Administrative Agent and its agents with immediate access to the Property, subject to the rights of
tenants. Borrower will furnish to Administrative Agent and its agents, for inspection and copying,
all books and records, and other documents and information relating to the Borrower or the Property
that Administrative Agent may reasonably request in writing from time to time.

4.6 Real Property Taxes.

(a) Borrower will pay, or cause to be paid, all Real Property Taxes at least ten (10) days
prior to the date the same shall become delinquent. Notwithstanding the foregoing, so long as no
Default shall have occurred and be continuing, Borrower shall have the right to challenge or appeal
any Real Property Taxes so long as (a) Borrower shall prosecute such challenge or appeal in good
faith, at its own expense and by appropriate legal proceedings, (b) Administrative Agent shall have
received assurance reasonably satisfactory to Administrative Agent that (i) such contest will not
result in the imposition of any civil or criminal liability or penalty, (ii) either Borrower shall
have paid such Real Property Taxes in full or such contest shall suspend the payment and collection
thereof by and from Borrower and the Property, and (iii) the Property would not be in any danger of
being sold, forfeited or lost in any respect, nor would the value or use of the Property be
impaired or curtailed, as a result of such contest or deferral of payment, (c) unless such Real
Property Taxes shall have been paid in full, Borrower shall have furnished such security as may be
required in the proceeding or as may be reasonably requested by Administrative Agent, to insure the
cost of compliance, including all interest and penalties in connection therewith, which security
shall not be less than one hundred and ten percent (110%) of the maximum liability of Borrower as
reasonably determined by Administrative Agent, (d) promptly after such challenge or appeal, and in
any event on or prior to the date that payment is required under applicable Law, Borrower shall pay
any such Real Property Taxes, fees, penalties, interest and other sums determined to be payable and
(e) such challenge or appeal is made and performed in accordance with applicable Laws.

(b) Subject to Borrower’s right to contest set forth in Section 4.6(a), Borrower shall
furnish to Administrative Agent upon written request, receipts for the payment of Real Property
Taxes at least five (5) days prior to the date the same shall become delinquent. If Borrower shall
fail to pay any Real Property Taxes in accordance with this Section 4.6 (subject to
Borrower’s right to contest set forth in Section 4.6(a)), in addition to all other rights
and remedies of Administrative Agent and Lenders, Administrative Agent shall have the right, but
shall not be obligated, to pay Real Property Taxes, and Borrower shall repay same to Administrative
Agent upon demand, with interest thereon at the Default Rate accruing from the date such advance is
due to be repaid by Borrower to the date of repayment, and such amount shall constitute a portion
of the Obligations secured by the Mortgage.

4.7 Insurance.

(a) Borrower shall obtain and maintain at Borrower’s sole expense: (1) property insurance with
respect to all insurable Property, against loss or damage by fire, lightning, windstorm, explosion,
hail, tornado and such additional hazards as are presently included in “Special Form” (also known
as “all-risk”) coverage and against any and all acts of terrorism and such other insurable hazards
as Administrative Agent may require, in an amount not less than 100% of the full replacement cost,
including the cost of debris removal, without deduction for depreciation and sufficient to prevent
Borrower and Administrative Agent from becoming a coinsurer (such insurance to be in “builder’s
risk” completed value (non-reporting) form during and with respect to any construction on the
Property); (2) if and to the extent any portion of the Improvements is, under the Flood Disaster
Protection Act of 1973 (“FDPA”), as it may be amended from time to time, in a Special Flood
Hazard Area, within a Flood Zone designated A or V in a participating community, a flood insurance
policy on the Improvements and any Borrower owned contents in an amount required by Administrative
Agent, but in no event less than the amount sufficient to meet the requirements of applicable Law
and the FDPA, as such requirements may from time to time be in effect; provided, that if
the Indebtedness relates to construction of the Improvements, then the flood insurance policy on
contents shall be required upon completion of the Improvements or any unit or component thereof, or
as soon thereafter as a flood insurance policy on contents may be obtained; provided
further that Borrower shall not commence construction of any portion of any structure or
improvement on the Land located within a Special Flood Hazard Area without giving at least ten (10)
days written advance notice to Administrative Agent and each of the Lenders, and obtaining flood
insurance coverage as required herein; (3) general liability insurance, on an “occurrence” basis,
against claims for “personal injury” liability, including bodily injury, death or property damage
liability, for the benefit of Borrower as named insured and Administrative Agent as additional
insured; (4) statutory workers’ compensation insurance with respect to any work on or about the
Property (including employer’s liability insurance, if required by Administrative Agent), covering
all employees of Borrower and any contractor; (5) if there is a general contractor, commercial
general liability insurance, including products and completed operations coverage, and in other
respects similar to that described in clause (3) above, for the benefit of the general
contractor as named insured and Borrower and Administrative Agent as additional insureds, in
addition to statutory workers’ compensation insurance with respect to any work on or about the
Property (including employer’s liability insurance, if required by Administrative Agent), covering
all employees of the general contractor or any contractor; and (6) such other insurance on the
Property and endorsements as may from time to time be required by Administrative Agent (including
automobile liability insurance, business interruption insurance, boiler and machinery insurance,
earthquake insurance, wind insurance, and/or sinkhole coverage) and against other insurable hazards
or casualties which at the time are commonly insured against in the case of premises similarly
situated, due regard being given to the height, type, construction, location, use and occupancy of
buildings and improvements. All insurance policies shall be issued and maintained by insurers, in
amounts, with deductibles, limits and retentions, and in forms satisfactory to Administrative
Agent, and shall require not less than ten (10) days’ prior written notice to Administrative Agent
of any cancellation for nonpayment of premiums, and not less than thirty (30) days’ prior written
notice to Administrative Agent of any other cancellation or any change of coverage. All insurance
companies must be licensed to do business in the state in which the Property is located and must
have an A.M. Best Company financial and performance ratings of A-:IX or better. All insurance
policies maintained, or caused to be maintained, with respect to the Property, except for general
liability insurance, shall provide that each such policy shall be primary without right of
contribution from any other insurance that may be carried by Borrower or Administrative Agent and
that all of the provisions thereof, except the limits of liability, shall operate in the same
manner as if there were a separate policy covering each insured. If any insurer which has issued a
policy of title, hazard, liability or other insurance required pursuant to this Agreement or any
other Loan Document becomes insolvent or the subject of any petition, case, proceeding or other
action pursuant to any Debtor Relief Law, or if in Administrative Agent’s reasonable opinion the
financial responsibility of such insurer is or becomes inadequate, Borrower shall, in each instance
promptly upon its discovery thereof or upon the written request of Administrative Agent therefor,
and at Borrower’s expense, promptly obtain and deliver to Administrative Agent a like policy (or,
if and to the extent permitted by Administrative Agent, acceptable evidence of insurance) issued by
another insurer, which insurer and policy meet the requirements of this Agreement or such other
Loan Document, as the case may be. Without limiting the discretion of Administrative Agent with
respect to required endorsements to insurance policies, all such policies for loss of or damage to
the Property shall contain a standard mortgagee “Loss Payee” clause (without contribution) naming
Administrative Agent as “Loss Payee” with loss proceeds payable to Administrative Agent
notwithstanding (i) any act, failure to act or negligence of or violation of any warranty,
declaration or condition contained in any such policy by any named or additional insured; (ii) the
occupation or use of the Property for purposes more hazardous than permitted by the terms of any
such policy; (iii) any foreclosure or other action by Administrative Agent under the Loan
Documents; or (iv) any change in title to or ownership of the Property or any portion thereof, such
proceeds to be held for application as provided in the Loan Documents. Borrower shall pay all
premiums on policies required hereunder as they become due and payable. If any loss occurs at any
time when Borrower has failed to perform Borrower’s covenants and agreements in this paragraph with
respect to any insurance payable because of loss sustained to any part of the Property whether or
not such insurance is required by Administrative Agent, Administrative Agent shall nevertheless be
entitled to the benefit of all insurance covering the loss and held by or for Borrower, to the same
extent as if it had been made payable to Administrative Agent.

(b) The originals of each initial insurance policy (or a copy of the original policy and such
evidence of insurance acceptable to Administrative Agent such as an Acord certificate of insurance)
shall be delivered to Administrative Agent at the time of execution of this Agreement, with all
premiums fully paid current, and each renewal or substitute policy (or to the extent permitted by
Administrative Agent, a copy thereof and such evidence of insurance acceptable to Administrative
Agent) shall be delivered to Administrative Agent, with all premiums fully paid current, at least
ten (10) days before the termination of the policy it renews or replaces. Borrower shall promptly
deliver to Administrative Agent evidence satisfactory to Administrative Agent of the timely payment
of all premiums on the policies required hereunder.

(c) Intentionally Omitted.

(d) Upon any foreclosure of the Mortgage or transfer of title to the Property in
extinguishment of the whole or any part of the Obligations, all of Borrower’s right, title and
interest in and to the insurance policies referred to in this Section 4.7 (including
unearned premiums) and all proceeds payable thereunder shall thereupon vest in the purchaser at
foreclosure or other such transferee, to the extent permissible under such policies. Following the
occurrence of and during the continuance of any Default, Administrative Agent shall have the right
(but not the obligation) to make proof of loss for, settle and adjust any claim under, and receive
the proceeds of, all insurance for loss of or damage to the Property, regardless of whether or not
such insurance policies are required by Administrative Agent, and the expenses incurred by
Administrative Agent, including reasonable attorneys’ fees, in the adjustment and collection of
insurance proceeds shall be a part of the Indebtedness and shall be due and payable to
Administrative Agent on demand. Administrative Agent shall not be, under any circumstances, liable
or responsible for failure to collect or exercise diligence in the collection of any of such
proceeds or for the obtaining, maintaining or adequacy of any insurance or for failure to see to
the proper application of any amount paid over to Borrower. Following the occurrence of and
during the continuance of any Default, any proceeds of insurance policies received by
Administrative Agent shall, after deduction therefrom of all expenses incurred by Administrative
Agent, including reasonable attorneys’ fees, at Administrative Agent’s option be (1) released to
Borrower, or (2) applied (upon compliance with such terms and conditions as may be required by
Administrative Agent) to repair or restoration, either partly or entirely, of the Property so
damaged, or (3) applied to the payment of the Indebtedness and other Obligations in such order and
manner as Administrative Agent, in its sole discretion, may elect, whether or not due. In any
event, the unpaid portion of the Indebtedness and other Obligations shall remain in full force and
effect and the payment thereof shall not be excused. Borrower shall at all times comply with the
requirements of the insurance policies required hereunder and of the issuers of such policies and
of any board of fire underwriters or similar body as applicable to or affecting the Property.

4.8 Damage or Destruction.

(a) Promptly after Borrower obtains knowledge of the occurrence thereof, Borrower shall notify
Administrative Agent of any fire or other Casualty with respect to any portion of the Property.
Such notice also shall generally describe the nature and extent of such Casualty and set forth
Borrower’s best preliminary estimate of the cost of Restoration.

(b) Subject to the proviso in this Section 4.8(b), Administrative Agent shall be entitled to
receive all insurance proceeds payable with respect to the Property on account of a Casualty and
Borrower hereby irrevocably assigns, transfers and sets over to Administrative Agent all rights of
Borrower to any such insurance proceeds, award or payment. Borrower hereby irrevocably authorizes
and empowers Administrative Agent, in the name of Borrower or otherwise, to file for and prosecute
in its own name what would otherwise be Borrower’s claim for any such insurance proceeds.
Notwithstanding the foregoing, so long as no Default shall have occurred and shall then be
continuing and provided Borrower promptly files all claims and diligently prosecutes same, Borrower
shall have the right to file, adjust, settle and prosecute any claim for such insurance proceeds;
provided, however, that Borrower shall not agree to any adjustment or settlement of
any such claim payable with respect to a Casualty the insurance proceeds with respect to which are
equal to or greater than $5,000,000 (the “Casualty Proceeds Disbursement Threshold”)
without Administrative Agent’s prior written consent. All expenses incurred by Administrative
Agent (including the fees of any insurance consultant or adjuster and reasonable attorneys’ fees)
in connection with a Casualty and seeking and obtaining any insurance proceeds, award or payment
with respect thereto shall be a part of the Indebtedness and shall be due and payable to
Administrative Agent on demand. Net Proceeds held by Administrative Agent, together with any
interest earned thereon, shall constitute additional security for the payment of the Obligations (a
security interest therein being granted hereby), until disbursed in accordance with this
Section 4.8 or Section 4.10. Notwithstanding the foregoing, or anything else
herein, to the contrary, all proceeds of business interruption/rent loss insurance shall be
deposited in Borrower’s operating account maintained with Administrative Agent and utilized by
Borrower for the payment of principal and interest due under the Loan for the time period covered
by such insurance. Notwithstanding the foregoing, to the extent the amount of the proceeds exceeds
the amount of principal and interest due under the Loan for the time period covered by such
insurance, such excess proceeds can be used by Borrower in any manner that does not violate the
terms of the Loan Documents.

(c) Borrower shall, at its sole cost and expense, promptly commence and diligently and
continuously perform to completion the Restoration in a good and workmanlike manner and in
compliance with all Laws and the requirements of the Permitted Encumbrances, whether or not
Borrower shall have satisfied the requirements of Section 4.8(d) in order to cause the Net
Proceeds to be made available for such Restoration and whether or not such insurance proceeds on
account of the Casualty shall be sufficient for such purpose.

(d) In the case of any Casualty with respect to which the insurance proceeds payable are less
than the Casualty Proceeds Disbursement Threshold, provided no Default shall have occurred and be
continuing, the Net Proceeds shall be held by Borrower and shall be used by Borrower for the
applicable Restoration and to the extent there is excess funds, any other lawful purposes without
any further consent or approval from the Administrative Agent or any Lender. In the case of any
Casualty with respect to which the insurance proceeds payable are equal to or greater than the
Casualty Proceeds Disbursement Threshold, the Net Proceeds shall be held by Administrative Agent,
if Administrative Agent so elects, as a part of the Collateral and shall be applied or dealt with
by Administrative Agent as follows:

(i) The Net Proceeds shall be disbursed if the following conditions are satisfied
(each a “Release Condition” and collectively, the “Release Conditions”):

(A) no Default or Potential Default shall have occurred and be continuing;

(B) Borrower shall have delivered to Administrative Agent within sixty (60)
days after the occurrence of the Casualty, a notice of Borrower’s desire to
undertake the Restoration;

(C) Borrower shall have demonstrated to the satisfaction of Administrative
Agent that the Restoration can be completed prior to the earlier of (1) the date
that is three (3) months prior to the then-current Maturity Date or (2) the date of
repair or restoration as may be required by applicable Law;

(D) Borrower shall have demonstrated to the satisfaction of Administrative
Agent that sufficient funds are available to Borrower through rent and/or business
interruption insurance maintained pursuant to Section 4.7, cash, and/or a
letter of credit or other similar cash-equivalent security reasonably satisfactory
to Administrative Agent as to form, content and issuer, and which shall be for the
benefit of Administrative Agent, to pay all Obligations and all operating expenses
with respect to the Property during the period reasonably estimated by Borrower as
necessary for the completion of the Restoration;

(E) if required by Administrative Agent, Borrower shall have provided
Administrative Agent, a guaranty of completion satisfactory to Agent in form and
content and from a guarantor approved by Administrative Agent which guaranty, among
other things, guarantees the timely and lien-free completion of the Restoration;

(F) to the extent, in Administrative Agent’s reasonable judgment, the Net
Proceeds are insufficient to pay the costs of the Restoration, Borrower shall have
provided Administrative Agent with a letter of credit, cash deposit or similar
equivalent security in the amount of such deficiency in form, content and issuer
satisfactory to Administrative Agent;

(G) Intentionally Omitted;

(H) Administrative Agent shall have received certificates of insurance, copies
of insurance policies or other evidence reasonably satisfactory to Administrative
Agent that the insurance coverage required hereunder, including insurance with
respect to such Casualty, is in full force and effect in accordance with the terms
hereof and shall remain in effect during the course of the Restoration (subject to
normal annual renewals);

(I) Administrative Agent shall have received a budget and plans and
specifications for the Restoration approved Administrative Agent; and

(J) Prior to any disbursement by Administrative Agent, the following
information and documentation shall have been obtained by Borrower, at Borrower’s
expense, and submitted to Administrative Agent, which information and documentation
shall be in form and substance reasonably satisfactory to Administrative Agent:

(I) A request for disbursement signed by Borrower, accompanied by
billing statements, vouchers or invoices, which request for disbursement
shall expressly warrant that the work with respect to which the advance is
requested has been substantially performed in accordance with the approved
plans and specifications for the Restoration;

(II) Proof that all invoices for labor and materials previously
submitted by Borrower and approved and reimbursed by Administrative Agent
have been paid, except for those that are the subject of the current request
for disbursement;

(III) Lien waivers for all payees under previous requests for
disbursements;

(IV) A report from Borrower’s architect or, if Administrative Agent
shall elect, Administrative Agent’s inspector, which shall specify the
percentage of completion of the Restoration, shall provide detailed comments
on specific work performed since the date of the last such report, and, if
required by Administrative Agent, an estimate of the cost to complete the
Restoration after taking into account the work then completed;

(V) At the request of Administrative Agent, a Title Insurance Report;

(VI) Copies of the agreements pursuant to which the restoration or
repair shall be done, all of which shall be in form and substance reasonably
satisfactory to Administrative Agent, and which also shall be reasonably
satisfactory to Administrative Agent as to the party performing the
construction obligations thereunder;

(VII) Written consents by parties to any general construction
contracts, architect/design contracts and other material contracts
consenting to the assignment of such contracts pursuant to the Mortgage
(which may be included in any such contract) and/or will-serve agreements in
favor of Administrative Agent in form reasonably satisfactory to it from
such contractors, architects or designers; and

(VIII) Such other information and documentation as Administrative Agent
may reasonably request regarding the Improvements and the Restoration and
the cost thereof.

(ii) Notwithstanding Section 4.8(d)(i), in the case of any Casualty with
respect to which the insurance proceeds payable are equal to or greater than the Casualty
Proceeds Disbursement Threshold, if Administrative Agent does not elect to hold the Net
Proceeds, and with respect to any proceeds held by Borrower pursuant to Section
4.8(d), Borrower shall not disburse any Net Proceeds other than in accordance with
the conditions of this Section 4.8(d) and Sections 4.8(e) and
4.8(f).

(e) If a Default shall have occurred and be continuing, the Release Condition set forth in
Section 4.8(d)(i)(B) hereof is not satisfied within the period set forth therein, or one or
more of the other Release Conditions set forth in Section 4.8(d)(i)(C) through (I)
above are not satisfied within one hundred and twenty (120) days of the occurrence of any Casualty,
then all Net Proceeds shall be applied in accordance with Section 4.10. If a Potential
Default shall have occurred and be continuing, Administrative shall not make the requested
disbursement until such time, if any, as such Potential Default does not exist (and the other
Release Conditions are satisfied).

(f) All expenses incurred by Administrative Agent in connection with making the Net Proceeds
available for the Restoration (including reasonable attorneys’ fees and reasonable fees of
Administrative Agent’s construction consultants and inspectors) shall be a part of the Indebtedness
and shall be due and payable to Administrative Agent upon demand. Any Net Proceeds remaining after
the Restoration and the payment in full of all costs incurred in connection with the Restoration
will be immediately returned to Borrower or, if a Default then exists, such Net Proceeds shall, in
the Administrative Agent’s sole discretion, either will be distributed by Administrative Agent to
Borrower or applied as a mandatory prepayment of the Loan.

4.9 Taking of the Mortgaged Property.

(a) Promptly after Borrower obtains knowledge of the occurrence thereof, Borrower shall notify
Administrative Agent of any Condemnation or the commencement of any proceedings or negotiations
which might result in a Condemnation. Such notice shall generally describe the nature and extent
of such Condemnation or the nature of such proceedings or negotiations and the nature and extent of
the Condemnation which might result therefrom. Administrative Agent shall be entitled hereunder to
all awards or compensation payable on account of a Condemnation to be applied in the manner set
forth herein. Borrower hereby irrevocably assigns, transfers and sets over to Administrative Agent
all rights of Borrower to any such awards or compensation and irrevocably authorizes and empowers
Administrative Agent, in the name of Borrower or otherwise, to collect and receipt for any such
award or compensation and delegates to Administrative Agent the right to file and prosecute any and
all claims for any such awards or compensation and to participate in any and all hearings, trials
and appeals in connection with a Condemnation on behalf of Borrower. Administrative Agent may
participate in such proceedings or negotiations and Borrower will deliver or cause to be delivered
to Administrative Agent all instruments requested by Administrative Agent to permit such
participation; provided, however, that Administrative Agent shall be under no
obligation to question the amount of the award or compensation. Although it is hereby expressly
agreed that the same shall not be necessary, and in any event, Borrower shall, upon demand of
Administrative Agent, make, execute and deliver any and all assignments and other instruments
sufficient for the purpose of assigning any such award or compensation to Administrative Agent,
free and clear of any encumbrances of any kind or nature whatsoever. Administrative Agent may be
represented in any Condemnation proceeding by counsel satisfactory to it at the expense of
Borrower. All expenses incurred by Administrative Agent in connection with making any Condemnation
and seeking and obtaining any award or payment on account thereof (including reasonable attorneys’
fees and reasonable fees of any appraiser or other consultant) shall be a part of the Indebtedness
and shall be due and payable to Administrative Agent upon demand.

(b) Borrower shall, at its sole cost and expense, promptly commence and diligently and
continuously perform to completion the Restoration in a good and workmanlike manner and in
compliance with all Laws and the requirements of the Permitted Encumbrances, whether or not
Borrower shall have satisfied the Release Conditions in order to cause the Net Restoration Award to
be made available for such Restoration and whether or not such awards or compensation, if any, on
account of the Taking shall be sufficient for such purpose.

(c) All Net Restoration Awards shall be held by Administrative Agent at its election. All Net
Restoration Awards shall be applied as follows:

(i) If the Condemnation is not a Material Condemnation, the amount of Net
Restoration Award is less than $5,000,000.00 (the “Net Restoration Award
Threshold”), and there is no Default then in existence, the Net Restoration Award
shall be held by the Borrower and applied by the Borrower to pay the cost of the
Restoration.

(ii) If the Condemnation is not a Material Condemnation, and the amount of the Net
Restoration Award is equal to or greater than the Net Restoration Award Threshold,
provided that the Release Conditions are satisfied, the Net Restoration Award shall be
made available to the Borrower to pay the cost of Restoration, such application to be
effected in the same manner and subject to the conditions provided in
Section 4.8(d) with respect to Net Proceeds. Any Net Restoration Awards
remaining after the Restoration and the payment in full of all costs incurred in
connection with the Restoration, in Administrative Agent’s sole discretion, either will
be distributed by Administrative Agent to Borrower or applied as a mandatory prepayment
of the Loan.

(iii) If the Condemnation is a Material Condemnation, or, the satisfaction of the
Release Conditions is required in order for Borrower to receive a Net Restoration Award
and one or more of the Release Conditions are not satisfied, all Net Restoration Awards
shall be applied in accordance with Section 4.10.

(iv) In the case of a Condemnation for temporary use, any Net Restoration Awards
shall be deposited and applied in the same manner and subject to the conditions provided
with respect to business interruption/rent loss insurance proceeds.

4.10 Application of Proceeds of Casualty or Taking to Loan;. Upon a Casualty, if the
disposition of the Net Proceeds is governed by Section 4.8(e) or upon a Condemnation, if
the disposition of the Net Restoration Awards is governed by Section 4.9(c)(iii), at the
option of Administrative Agent, the Net Proceeds or Net Restoration Awards, as applicable, shall be
applied to prepay the Loan. Notwithstanding the foregoing, Administrative Agent shall have the
option to (a) make available the Net Proceeds or the Net Restoration Awards, as the case may be, to
Borrower for Restoration in the manner provided in Section 4.8(d) or (b) apply the Net
Proceeds and/or the Net Restoration Awards to the Obligations, in such order and manner as
Administrative Agent determines, as the case may be. Borrower acknowledges and agrees that in the
event a Default has occurred and is continuing, Administrative Agent shall have the sole right to
receive any Net Proceeds or Net Restoration Awards and apply such funds for any purpose in
Administrative Agent’s sole determination, including without limitation Restoration or to prepay
the Loan. Such rights are in addition to any other rights Administrative Agent has hereunder
following the occurrence and during the continuance of a Default.

4.11 Compliance with Law. Borrower shall not, by act or omission, permit any building or
other improvement not subject to the lien of the Mortgage to rely on the Property or any interest
therein to fulfill any requirement of any Law. Borrower shall preserve in force all requisite
zoning, utility, building, health, environmental and operating permits from all Governmental
Authorities having jurisdiction over the Property, and preserve and maintain all other rights,
privileges and franchises necessary to own and operate the Property in accordance with applicable
Law in all material respects. Borrower shall comply in all material respects with all applicable
Laws affecting the Property, including the use, operation, occupancy, maintenance and other
activity thereof or thereon and shall ensure that the Property complies with the terms and
conditions set forth in that certain Settlement Agreement dated January 7, 2010 by and between the
Sierra Club, The City of Moreno Valley, Highland Fairview Partners I, Highland Fairview Partners,
II, Highland Fairview Partners III, and Highland Fairview Partners IV, and HF Logistics I, LLC.
Borrower shall furnish Administrative Agent, on demand, proof of compliance with this Section
4.11 reasonably satisfactory in all respects to Administrative Agent. Notwithstanding the
foregoing, Borrower shall have the right to challenge or appeal any such Law so long as
(a) Borrower shall prosecute such challenge or appeal in good faith, at its own expense and by
appropriate legal proceedings, (b) Administrative Agent shall have received assurance reasonably
satisfactory to Administrative Agent that (i) such contest will not result in the imposition of any
civil or criminal liability or penalty and (ii) the Property would not be in any danger of being
sold, forfeited or lost in any respect, nor would the value or use of the Property be impaired or
curtailed, as a result of such contest or deferral of compliance, (c) Borrower shall have furnished
such security as may be required in the proceeding or as may be reasonably requested by
Administrative Agent, to insure the cost of compliance, including all interest and penalties in
connection therewith, which security shall not be less than one hundred and ten percent (110%) of
the maximum liability of Borrower as reasonably determined by Administrative Agent, (d) the subject
matter of the applicable Law will be addressed to the reasonable satisfaction of Administrative
Agent promptly after such contest but in any event prior to the time the security granted to
Administrative Agent in the Property shall be subjected to any Lien or otherwise jeopardized or
Borrower or the Property otherwise becomes subject to any enforcement or penalties, in the sole
opinion of Administrative Agent, and (e) such challenge or appeal is made and performed in
accordance with applicable Laws.

If Borrower receives a bona fide notice or claim from any Person that the Property or any use,
operation, occupancy, maintenance or other activity thereof or thereon is not in compliance with
any Law, Borrower will promptly furnish a copy of such notice or claim to Administrative Agent.

4.12 Leasing Requirements. Borrower shall comply with the terms and conditions of
Exhibit E with respect to the matters described therein.

4.13 Financial Matters. All reports, statements, plans, budgets, applications, agreements
and other data and information heretofore furnished or hereafter to be furnished by or on behalf of
Borrower to Administrative Agent in connection with the Loan (including all financial statements
and financial information) will be true, correct and complete in all material respects as of their
respective dates and will not omit to state any fact or circumstance necessary to make the
statements contained therein not misleading in any material respect. For the purposes of this
paragraph, “Borrower” shall also include any other Person liable for the Indebtedness or
any part thereof and any joint venturer or general partner of Borrower.

4.14 Statement Concerning Note or Mortgage. Borrower shall at any time and from time to
time furnish within ten (10) business days of written request by Administrative Agent a written
statement in such form as may be required by Administrative Agent stating that (a) the Notes, this
Agreement and the other Loan Documents are valid and binding obligations of Borrower, enforceable
against Borrower in accordance with their terms; (b) the Principal Debt; (c) the date to which
interest on the Notes is paid; (d) the Notes, this Agreement and the other Loan Documents have not
been released, subordinated or modified; and (e) there are no offsets, counterclaims or defenses
against the enforcement of the Notes, this Agreement or any other Loan Document. If any of the
foregoing statements are untrue, Borrower shall, alternatively, specify the reasons therefor.

4.15 Notice to Lenders. Borrower shall, within three (3) days after Borrower obtains
knowledge of the occurrence of any of the following events, notify Administrative Agent and each
Lender in writing thereof, specifying in each case the action Borrower has taken or will take with
respect thereto: (a) any Default or Potential Default hereunder or under any of the other Loan
Documents; (b) any material violation of any Law by Borrower or any Guarantor, or any claim or
assertion by any Governmental Authority that the Property or Improvements fail to comply in any
material respect with any Law; (c) any investigation by any Governmental Authority, or any
litigation, arbitration or other proceeding instituted or threatened against the Property and any
material development therein; (d) any investigation by any Governmental Authority, or any
litigation, arbitration or other proceeding instituted or threatened against Borrower or any
Guarantor which if resolved unfavorably to Borrower or Guarantor would have a Material Adverse
Effect on Borrower or Guarantor, and any material development therein; (e) any actual or threatened
condemnation of any portion of the Property, any negotiations with respect to any such taking, or
any loss of or substantial damage to the Property; (f) any labor controversy pending or threatened
against Borrower, and any material development in any labor controversy; (g) any notice received by
Borrower with respect to the cancellation, alteration or non-renewal of any insurance coverage
maintained with respect to the Property (other than an annual notice of non-renewal delivered by an
insurance carrier in the normal course of business and prior to the expiration of the applicable
policy and where Borrower has a reasonable expectation that such coverage will in fact be renewed
or maintained) and ; (h) any lien (other than Permitted Encumbrances) filed against the Property or
any stop notice served on Borrower; (i) any required permit, license, certificate or approval with
respect to the Property lapses or ceases to be in full force and effect, the lack of which would
have a Material Adverse Effect; or (j) any Material Adverse Effect in the financial condition,
results of operations, business or properties of Borrower, Guarantor or any other Person liable for
the payment or performance of any of the Obligations.

4.16 Financial Statements.

(a) Borrower shall deliver to Administrative Agent and each Lender, in form and detail
satisfactory to Administrative Agent and Required Lenders, the Financial Statements and other
statements and information at the times and for the periods described in (i) Exhibit B
attached hereto and (ii) any other Loan Document.

(b) Borrower will keep and maintain full and accurate books and records administered in
accordance with sound accounting principles, consistently applied, showing in detail the earnings
and expenses of the Property and the operation thereof. All Financial Statements and Property
Schedules shall be in form and detail reasonably satisfactory to Administrative Agent and shall
contain or be attached to the signed and dated written certification of the reporting party in form
specified by Administrative Agent to certify that the Financial Statements are furnished to
Administrative Agent in connection with the extension of credit by Lenders and constitute a true
and correct statement of the reporting party’s financial position. Administrative Agent and each
Lender agrees that the forms that have been provided by Borrower in connection with the Existing
Loan (and the detail contained therein) are acceptable and Borrower may continue to use such forms.
All certifications and signatures on behalf of corporations, partnerships, limited liability
companies or other entities shall be by a representative of the reporting party satisfactory to
Administrative Agent. All Financial Statements and Property Schedules for a reporting party who
is an individual shall be on Administrative Agent’s then-current personal financial statement form
or in another form reasonably satisfactory to Administrative Agent. All fiscal year-end Financial
Statements of Borrower and Guarantor may be prepared by the reporting party. All Property
Schedules may be prepared by the applicable reporting party. Borrower shall provide, upon
Administrative Agent’s request, convenient facilities for the audit and verification of any such
statement. Additionally, Borrower will provide Administrative Agent at Borrower’s expense with all
evidence that Administrative Agent may from time to time reasonably request in writing as to
compliance with all provisions of the Loan Documents.

4.17 Reports and Testing. Borrower shall (a) upon written request from Administrative
Agent, promptly deliver to Administrative Agent copies of all reports, studies, inspections and
tests made on or of the Property; and (b) make such additional tests on or of the Property as
Administrative Agent reasonably requires. Borrower shall immediately notify Administrative Agent
of any report, study, inspection or test that indicates any material adverse condition relating to
the Property or any such materials.

4.18 Appraisal. Administrative Agent may obtain from time to time, an appraisal of all or
any part of the Property prepared in accordance with written instructions from Administrative Agent
by a third-party appraiser engaged directly by Administrative Agent. Each such appraiser and the
form of the appraisal shall be satisfactory to Administrative Agent (including satisfaction of
applicable regulatory requirements). The cost of any such appraisal, including any costs for
internal review thereof, shall be borne by Borrower if such appraisal is the first appraisal in any
calendar year and in all events if Administrative Agent obtains such appraisal after the occurrence
of a Default. Whenever Borrower is obligated to pay the cost of an appraisal hereunder, such cost
is due and payable by Borrower on demand and shall be secured by the Loan Documents.
Administrative Agent shall provide a copy of such appraisal to each Lender upon receipt as well as
to Borrower provided that Borrower delivers to Administrative Agent an indemnification agreement
with respect to such appraisal on Administrative Agent’s standard form.

4.19 ERISA and Prohibited Transaction Taxes. As of the date hereof and throughout the term
of this Agreement, (a) Borrower is not and will not be (i) an “employee benefit plan,” as defined
in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”); or (ii) a “plan” within the meaning of Section 4975(e) of the Code; (b) the
assets of Borrower do not and will not constitute “plan assets” within the meaning of the United
States Department of Labor Regulations set forth in 29 C.F.R. §2510.3-101; (c) Borrower is not and
will not be a “governmental plan” within the meaning of Section 3(32) of ERISA; (d) transactions by
or with Borrower are not and will not be subject to state statutes applicable to Borrower
regulating investments of fiduciaries with respect to governmental plans; and (e) Borrower shall
not engage in any transaction which would cause any obligation, or action taken or to be taken,
hereunder (or the exercise by Administrative Agent of any of Lender’s rights under this Agreement,
any Note or the other Loan Documents) to be a non-exempt (under a statutory or administrative class
exemption) prohibited transaction under ERISA or Section 4975 of the Code. Borrower further agrees
to deliver to Administrative Agent such certifications or other evidence of compliance with the
provisions of this Section 4.19 as Administrative Agent may from time to time request.

4.20 Financial Covenants. Borrower shall comply and shall cause Guarantor to comply with
the terms and conditions of Exhibit J with respect to the matters described therein.

4.21 Organizational Restrictions.

(a) Intentionally Omitted.

(b) Borrower shall conduct business only in its own name (including its trade name or names)
and shall not change its name, identity, or type of organization specified in the first paragraph
of this Agreement unless Borrower shall have obtained the prior written consent of Administrative
Agent. Borrower shall promptly notify Administrative Agent (a) of any change of its organizational
identification number, or (b) if Borrower does not now have an organization identification number
and later obtains one, of such organizational identification number.

(c) Borrower shall not change the location of its chief executive office or principal place of
business unless Borrower (a) shall have given Administrative Agent at least ten (10) Business Days’
prior written notice and (b) shall have taken all actions necessary or reasonably requested by
Administrative Agent to file or amend any UCC financing statement or continuation statement
reasonably required to assure perfection and continuation of perfection of security interests under
the Loan Documents. Borrower’s principal place of business and chief executive office, and the
place where Borrower keeps its books and records, including recorded data of any kind or nature,
regardless of the medium of recording including software, writings, plans, specifications and
schematics concerning the Property, shall be the same.

4.22 Title and Permitted Encumbrances. Borrower shall maintain lawful, good and marketable
title to the Property and the right to convey the same, free and clear of all liens, charges,
claims, security interests, and encumbrances except for (a) the Permitted Encumbrances, (b) the
liens and security interests evidenced by the Mortgage, (c) statutory liens for Real Property Taxes
on the Property which are not yet delinquent, and (d) other liens and security interests (if any)
in favor of Administrative Agent. Borrower shall not suffer and shall promptly cause to be paid
and discharged all liens, charges, claims, security interests, and encumbrances against the
Property (except those expressly permitted pursuant to the foregoing sentence or under another
section of this Agreement) within ten (10) days of the date that any such liens, charges, claims,
security interests and encumbrances are filed or recorded against the Property. Borrower, and
Borrower’s successors and assigns, will warrant generally and forever defend title to the Property,
subject as aforesaid, to Administrative Agent and its successors or substitutes and assigns,
against the claims and demands of all Persons claiming or to claim the same or any part thereof.
Borrower will punctually pay, perform, observe and keep all covenants, obligations and conditions
in or pursuant to any Permitted Encumbrances and will not modify or permit modification of any
Permitted Encumbrance without the prior written consent of Administrative Agent. Inclusion of any
matter as a Permitted Encumbrance does not constitute approval or waiver by Administrative Agent of
any existing or future violation or other breach thereof by Borrower, by the Property or otherwise.
If any right or interest of Administrative Agent or Lenders in the Property shall be endangered or
questioned or shall be attacked directly or indirectly, Administrative Agent (whether or not it or
any Lender is named as a party to legal proceedings with respect thereto), is hereby authorized and
empowered to take such steps as in its discretion may be proper for the defense of any such legal
proceedings or the protection of such right or interest of Administrative Agent and Lenders,
including the employment of independent counsel, the prosecution or defense of litigation, and the
compromise or discharge of adverse claims. All expenses so incurred by Administrative Agent shall
be a part of the Indebtedness and shall be due and payable to Administrative Agent upon demand.
Administrative Agent shall be subrogated to all rights of the Person receiving such payment.

4.23 Swap Transaction. Borrower shall comply with the terms and conditions of Exhibit
I with respect to the matters described therein.

4.24 Borrower Taxes; Effect on Loan Documents. Borrower shall promptly pay all income,
franchise and other taxes now or hereafter owed by Borrower under any Law.  In the event (a) any
Law directly or indirectly imposes upon Administrative Agent or any Lender the payment of any of
such taxes, the payment of any of such taxes is required in order to create or preserve any of the
Liens granted to Administrative Agent or to enforce any of the rights and remedies of
Administrative Agent and Lenders under the Mortgage, any other Loan Document at law or in equity,
or any of such taxes otherwise affects the Mortgage, any other Loan Document, Administrative Agent
or any Lender, including their interests in any of the Collateral, (b) any Law deducts from the
value of the Property for the purpose of taxation any lien, charge or security interest thereon, or
requires Administrative Agent or Lender to pay any such lien, charge or security interest or the
value thereof, or any other assessment against Borrower or the Property, or (c) there is any change
in law regarding the taxation of deeds of trust or mortgages or security agreements or debts
secured by deeds of trust or mortgages or security agreements or the interest of the beneficiary,
mortgagee or secured party in the property covered thereby, or the manner of collection of such
taxes, so as to affect the Mortgage or any other Loan Document, then, and in any such event,
Borrower, upon demand by Administrative Agent, shall pay such taxes, liens, charges and security
interests or reimburse Administrative Agent or Lenders, as applicable, therefor; provided,
however, that if in the opinion of counsel for Administrative Agent (a) it might be
unlawful to require Borrower to make such payment or (b) the making of such payment might result in
the imposition of interest beyond the maximum amount permitted by law, then and in such event,
Administrative Agent may elect, by notice in writing given to Borrower, to declare all of the
Indebtedness to be and become due and payable one hundred twenty (120) days from the giving of such
notice.

4.25 Controlled Substances. Without limiting the provisions of Section 6.2,
Borrower shall not, and shall not permit or knowingly suffer any tenant leasing space in the
Improvements to violate the Controlled Substances Act, or any other Laws affecting the Property
which could otherwise result in the occurrence of a Default under Section 7.1(n), including
the commencement of any proceedings under the Civil Asset Forfeiture Reform Act. Upon learning of
any conduct contrary to this Section 4.25, Borrower shall immediately take all actions
reasonably expected under the circumstances to terminate any such use of the Property, including:
(a) to give timely notice to any appropriate law enforcement agency of information that led
Borrower to know such conduct had occurred, and (b) in a timely fashion to revoke or make a good
faith attempt to revoke permission for those engaging in such conduct to use the Property or to
take reasonable actions in consultation with a law enforcement agency to discourage or prevent
illegal use of the Property.

ARTICLE 5 — NEGATIVE COVENANTS

5.1 Additional Indebtedness. Borrower shall not avail itself of or permit any additional
extension of credit or debt of any kind (whether recourse or non-recourse, secured or unsecured)
without the prior written consent of the Required Lenders except for (a) Permitted Debt, and
(b) the Obligations.

5.2 Limitation on Distributions, etc. During the continuance of a Default, Borrower shall
not make any dividend, payment or distribution to any of its Constituent Members.

5.3 Contracts.

(a) Affiliates. Without the prior written consent of Administrative Agent, Borrower
shall not, nor shall Borrower’s Constituent Member, enter into any contract or otherwise engage in
any transactions with an Affiliate of Borrower or such Constituent Member, except for contracts,
amendments and transactions entered into in the ordinary course of business of Borrower and at
prices and on terms that are commercially reasonable and are no less favorable to Borrower or such
Constituent Member, as applicable, than would be obtained in a comparable arm’s-length transaction
with an unrelated third party.

(b) Third Parties. Without the prior written consent of Administrative Agent,
Borrower shall not enter into any contract, amend any contract or otherwise engage in any
transactions with any third party, except for contracts, amendments and transactions entered into
in the ordinary course of business of Borrower, on an arm’s-length basis and on commercially
reasonable terms.

5.4 Transfers; Encumbrances. Borrower shall not, voluntarily or involuntarily, directly or
indirectly, sell, convey, transfer, lease or otherwise dispose of, grant easements or other rights
with respect to, or mortgage, encumber or create a Lien or security interest in, the Property or
the income or any other revenues therefrom or permit or knowingly suffer any such action to be
taken, except in each case as permitted or not prohibited by the Loan Documents.

5.5 Ownership; Merger; Consolidation; Purchase or Sale of Assets.

(a) Without the prior written consent of Administrative Agent, except as expressly permitted
by this Agreement, Borrower shall not, directly or indirectly: (i) change, or permit to be changed,
the structure or ownership of Borrower or of any Constituent Member from that existing on the
Closing Date; (ii) consolidate with, be acquired by, or merge into or with any Person; (iii) permit
any sale, transfer, assignment, pledge, mortgage, encumbrance or other disposition (each a
“Transfer”) of all or part of the Property; (iv) acquire any property other than the
Property; (v) permit any change in the members or managers of, or change of Control of, Borrower or
any Constituent Member from that existing on the Closing Date; or (vi) permit any Transfer of all
or any part of any direct or indirect interest in Borrower (other than the existing pledge by
Skechers of its membership interest in Skechers R.B., LLC, a Delaware limited liability company,
which pledge shall not be deemed to be a prohibited Transfer hereunder).

(b) Notwithstanding the terms of clause (a) above, a Transfer of a direct or indirect
interest in the Borrower shall be permitted without Administrative Agent’s consent upon
satisfaction of all of the following conditions:

(i) after giving effect to such Transfer:

(A) a Trump Entity or a Skechers Entity (or both) continues directly or
indirectly to Control the Borrower; and

(B) a Trump Entity or Skechers Entity directly or indirectly owns at least a
fifty one percent (51%) interest in the Borrower or a Trump Entity and Skechers
Entity each directly or indirectly continue to own a fifty percent (50%) interest in
the Borrower;

(ii) such Transfer is of less than twenty five percent (25%) of the direct or
indirect interests in the Borrower and does not result in a Person who prior to such
Transfer had a direct or indirect interest in the Borrower of less than twenty five
percent (25%) having a direct or indirect interest in the Borrower equal to or greater
than twenty five percent (25%) after giving effect to such Transfer unless such Person
has first satisfied Administrative Agent’s requirements with respect to any “know your
customer” regulations imposed by any applicable Governmental Authority);

(iii) the transferee is not a Prohibited Person; and

(iv) Borrower provides Administrative Agent with written notice of such Transfer at
least five (5) days before such Transfer shall become effective, with such notice
containing a description of such Transfer, the interest transferred and the identity of
the transferor and transferee.

(c) For avoidance of any doubt, Borrower acknowledges and agrees that with respect to any
Transfer that is a pledge of, or other similar encumbrance on, a direct or indirect interest in the
Borrower, in the event a secured party exercises its remedies under any such pledge or other
encumbrance and the conditions set forth in either Section 5.5(b)(i)(A) or Section 5.5.(b)(i)(B)
are not thereafter satisfied, the pledge and the exercise of such remedy shall each be deemed a
prohibited Transfer hereunder.

ARTICLE 6 — REPRESENTATIONS AND WARRANTIES

To induce Lenders to make the Loan, Borrower hereby represents and warrants to Administrative
Agent and Lenders as follows as of the date hereof:

6.1 Organization; Authorization; Enforceability. Borrower is a limited liability company
duly organized, validly existing and in good standing under the laws of the State of Delaware.
Borrower is  authorized to do business in, and if required by Law, in good standing in, each state
in which the Property is located, and (iii) possesses of all requisite power and authority to carry
on its business and to own and operate the Property. Borrower has complied with any and all Laws
and regulations concerning its organization, existence and the transaction of its business, and has
the right and power to own the Property as contemplated in this Agreement and the other Loan
Documents. Borrower is authorized to execute, deliver and perform all of its obligations under the
Loan Documents. No authorization, approval or other action by, and no notice to or filing with,
any Governmental Authority is required for the due execution, delivery and performance by Borrower
of this Agreement, the other Loan Documents and all other documents executed in connection herewith
and therewith except such as have been obtained by Borrower and are in full force and effect. The
execution, delivery and performance by Borrower of this Agreement, the other Loan Documents and all
other documents executed in connection herewith and therewith are not and will not be in
contravention of any Law or any other document or agreement to which Borrower or the Property is
subject, and do not and will not result in the creation of any encumbrance against any assets or
properties of Borrower, Guarantor or any other Person liable for any of the Obligations. This
Agreement, the other Loan Documents and all other documents executed in connection herewith and
therewith are the legal, valid and binding obligations of Borrower, enforceable against Borrower in
the accordance with their terms, subject to applicable bankruptcy, insolvency or similar laws
generally affecting the enforcement of creditors’ rights. Borrower has heretofore delivered to
Administrative Agent true and complete copies of the Constituent Documents of Borrower, Guarantor
and their respective Constituent Members. The structure chart attached hereto as Exhibit N
set forth a true, correct and complete representation of Borrower’s organizational structure and
the ownership of the Property, and without limiting the foregoing, HF Logistics-SKX, LLC, a
Delaware limited liability company, is in Control of Borrower. Borrower does not have any
employees.

6.2 Applicable Laws; Governmental Approvals Regarding the Property.

(a) Borrower is not in violation in any material respect of any Law, regulation or ordinance,
or any order of any court or Governmental Authority, and no provision of the Loan Documents
violates any order of any court or Governmental Authority or any contract or agreement binding on
Borrower. No provision of the Loan Documents violates any covenants or restrictions affecting the
Property or any order of any court or any Governmental Authority or any contract or agreement
binding on the Property. The Property and the use, operation and maintenance thereof and all
activities thereon comply in all material respects with all applicable Laws, including all
subdivision and platting requirements, without reliance on any adjoining or neighboring property.

(b) Borrower is not a party to any tax sharing agreement; to the best of Borrower’s knowledge,
there is no proposed tax assessment against Borrower or Guarantor; to the extent required by
applicable Law, Borrower and Guarantor have filed all necessary tax returns and reports and have
paid all taxes and governmental charges thereby shown to be or otherwise owing.

(c) The Property is not part of a larger tract of land owned by Borrower or any of its
affiliates or Guarantor, is not otherwise included under any unity of title or similar covenant
with other real property not encumbered by the Mortgage, and constitutes a separate tax lot or lots
with a separate tax assessment or assessments, independent of those for any other lands or
improvements. The Property is not, and shall not be, dependent on any property or premises or any
interest therein other than the Property to fulfill any requirement of any Law. No land, building
or other improvement not subject to the lien of the Mortgage relies on the Property or any interest
therein to fulfill any requirement of any Law.

(d) The Improvements comply in all material respects with all Laws regarding access and
facilities for handicapped or disabled persons.

(e) All Governmental Approvals, including certificates of completion or occupancy, necessary
in connection with the ownership, use, management and operation the Property have been duly
obtained, are in full force and effect, and are held in the name of Borrower, and Borrower is not
in default thereunder.

(f) There is no proceeding pending or, to Borrower’s knowledge, threatened, that seeks, or may
reasonably be expected, to rescind, terminate, modify or suspend any such Governmental Approval nor
has any act or omission been committed which could afford any Governmental Authority the right of
forfeiture as against the Property, any part thereof or any monies paid in performance of
Borrower’s obligations under any of the Loan Documents.

(g) The current and any anticipated use of the Property complies in all material respects with
all applicable zoning, land use and similar laws, ordinances, regulations and all restrictive
covenants affecting the Property without the existence of any variance, non-complying use,
nonconforming use or other special exception, all use restrictions of any Governmental Authority
having jurisdiction have been satisfied, and no violation of any Law or regulation exists with
respect thereto, and no violation of the Controlled Substances Act, or any other Laws affecting the
Property which could otherwise result in the occurrence of a Default under Section 7.1(n),
including the commencement of any proceedings under the Civil Asset Forfeiture Reform Act, exists
with respect thereto.

6.3 No Broker. No financial advisers, brokers, underwriters, placement agents, agents or
finders have been dealt with by Borrower, Guarantor or any Affiliate thereof in connection with the
Loan.

6.4 Encroachments.

(a) To Borrower’s knowledge, other than as disclosed in the Title Insurance or the Survey,
there are no encroachments on the Property and the Improvements do not encroach upon any adjoining
land or adjoining streets and lie wholly within the boundaries and building restriction lines of
the Property.

6.5 Agreements. Borrower has not directly or indirectly conveyed, assigned or otherwise
disposed of or transferred (or agreed to do so) any development rights, air rights or other similar
rights, privileges or attributes with respect to the Property, including those arising under any
zoning or land use ordinance or other Law. Borrower is not a party to any agreement or instrument
or subject to any restriction which would materially and adversely affect Borrower or the Property,
or Borrower’s business, properties or assets, operations or condition, financial or otherwise. To
Borrower’s knowledge, 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
agreement or instrument to which it is a party or by which Borrower or the Property is bound.
Borrower does not have any material financial obligation under any agreement or instrument to which
Borrower is a party or by which Borrower or the Property is otherwise bound, other than
(a) obligations incurred in the ordinary course of the operation of the Property (b) obligations
under the Loan Documents, and (c) Permitted Debt. Neither Borrower, nor Borrower’s Constituent
Member, is a party to any contract, or is engaged in any transaction, which would constitute a
breach of Section 5.3.

6.6 Financial Condition.

(a) All reports, statements, plans, budgets, applications, agreements and other data and
information heretofore furnished or hereafter to be furnished by or on behalf of Borrower to
Administrative Agent in connection with the Loan (including all Financial Statements and financial
information) are true, correct, and complete in all material respects and do not and will not omit
to state any fact or circumstance necessary to make the statements contained therein not
misleading. No Material Adverse Effect has occurred since the dates of such reports, statements
and other data in the financial condition of Borrower or, to Borrower’s knowledge, of any tenant
under any lease described therein. For the purposes of this paragraph, “Borrower” shall
also include any other Person liable for any part of the Indebtedness and any joint venturer or
general partner or member of Borrower.

(b) Neither Borrower nor Guarantor is the subject of any petition, case, proceeding or other
action pursuant to any Debtor Relief Law or contemplating filing any such petition, case,
proceeding or other action , and, to Borrower’s knowledge, no Person is contemplating the filing of
any petition, case, proceeding or other action pursuant to any Debtor Relief Law against Borrower
or Guarantor.

(c) Borrower is not insolvent (as such term is defined in the Bankruptcy Code) and Borrower
will not be rendered insolvent by the execution of the Loan Documents or otherwise.

(d) Borrower has not entered into this transaction or executed any Note, this Agreement or any
other Loan Documents 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
and the Liens on the Collateral granted or otherwise arising thereunder.

6.7 Utility Services. All utility services necessary for the operation and management of
the Property are available at the boundaries of the Land, including electric and natural gas
facilities, telephone service, water supply, storm and sanitary sewer facilities, except, in each
case, as otherwise could not reasonably be expected to have a Material Adverse Effect. All such
utility services cross only dedicated public roads or property subject to properly recorded
easements in favor of the utility company providing the service in question.

6.8 Liens. Except as otherwise provided for in the Loan Documents, Borrower has not made
any contract or arrangement of any kind the performance of which by the other party thereto would
give rise to a Lien on the Property other than Permitted Encumbrances.

6.9 Intentionally Omitted.

6.10 Status of Borrower; Not a Foreign Person. Borrower is not a “foreign person”
within the meaning of Section 1445 or 7701 of the Code. Without limiting the foregoing, Borrower
is not a foreign corporation, foreign partnership, foreign trust, foreign estate or nonresident
alien or a disregarded entity owned by any of them (as those terms are defined in the Code). The
Loan is solely for business and/or investment purposes, and is not intended for personal, family,
household or agricultural purposes. Borrower further warrants that the proceeds of the Loan shall
be used for commercial purposes and stipulates that the Loan shall be construed for all purposes as
a commercial loan. Borrower’s exact legal name is correctly set forth at the end of this
Agreement. Borrower’s organizational identification number, if any, assigned by the state of
incorporation or organization, and Borrower’s federal tax identification number, are correctly set
forth on the on the signature page of this Agreement.

6.11 Flood Zone. None of the Improvements are located in an area identified by the Federal
Emergency Management Agency as an area having special flood hazards, or, if any portion of the
Improvements is located within such area, Borrower has obtained the insurance prescribed herein.

6.12 Litigation. There are no actions, suits or proceedings pending, or to Borrower’s
knowledge, threatened, against or affecting Borrower and/or the Property which, in each case, if
adversely determined, shall materially affect the ability of Borrower to perform its respective
obligations hereunder or under any of the Loan Documents, or the Property or involving the validity
or enforceability of the Mortgage or the priority of the Lien thereof, at law or in equity, or
before any court or Governmental Authority, and Borrower is not in any material respect in default
or violation with respect to any order, writ, injunction, decree or demand of any court of
Governmental Authority. There are no actions or proceedings pending before any court,
quasi-judicial body or administrative agency relating to compliance of the Property with any
applicable zoning, subdivision, building, environmental or land use law, ordinance or resolution.

6.13 No Conflicts. Neither the execution, delivery or performance of, nor the consummation
of the transactions contemplated by, this Agreement, the Mortgage, the Notes or any other Loan
Documents will result in a breach of, or constitute a default under any other mortgage, deed of
trust, lease, bank loan or credit agreement, articles of organization, operating agreement,
corporate charter, bylaws, partnership agreement or other agreement or instrument to which Borrower
or Guarantor is a party or by which Borrower or Guarantor or any of their respective properties may
be bound or affected.

6.14 Public Access. All easements and rights of way necessary for the utilization of the
Improvements for their current uses have been acquired.

6.15 Leases. (a) The rent roll (the “Rent Roll”), attached hereto as Exhibit
O, contains a true, correct and complete list of all existing Leases for the Property and all
information set forth on such Rent Roll is true and correct in all material respects; (b) all
Leases are valid and enforceable, and in full force and effect, and are unmodified except as stated
therein; (c) except as set forth on Exhibit O, neither Borrower nor any tenant in the
Property is in default under its Lease (and no event has occurred which with the passage of time or
notice or both would result in a default under its Lease), other than with respect to rents owed by
any tenants that are less than thirty (30) days overdue, (d) no tenant is the subject of any
bankruptcy, insolvency or similar proceeding; (e) the copies of the Leases and any related
guaranties delivered to Administrative Agent are true and complete in all material respects;
(f) Borrower has no knowledge of any notice of termination or default with respect to any Lease;
(g) Borrower has not assigned or pledged any of the Leases, the Rents or any interests therein
except to Administrative Agent (on behalf of the Lenders); (h) no tenant or other party has an
unexpired option, right of first refusal or other preferential right to purchase all or any portion
of the Property, except as set forth on Exhibit O; (i) no tenant has the unilateral right
to terminate its Lease prior to expiration of the stated term of such Lease absent the occurrence
of any casualty, condemnation or default by Borrower thereunder, except as set forth on Exhibit
O; and (j) no tenant has prepaid more than one (1) month’s rent in advance (except for security
deposits and other charges collected in accordance with the terms of the applicable Lease).

6.16 Insurance. Borrower has obtained and delivered to Administrative Agent certificates
of insurance for the Property reflecting the insurance coverages, amounts and other insurance
requirements set forth in the Loan Documents. No Person, including Borrower, has done, by act or
omission, anything which would materially and adversely impair the coverage of any such policy.

6.17 Condemnation. Borrower has not received any written notice of, and to Borrower’s
knowledge, no Person has threatened, any actual or proposed Condemnation.

6.18 Physical Condition. To Borrower’s knowledge, the Property, including all buildings,
improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC
systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and
doors, landscaping, irrigation systems and all structural components, are in good condition, order
and repair in all material respects. To Borrower’s knowledge, there exists no structural or other
material defects or damages in the Property, as a result of a Casualty or otherwise. Borrower has
not received any written notice from any insurance company or bonding company of any material
defects or inadequacies in the Property which would adversely affect the insurability of the same
or cause the imposition of extraordinary premiums or charges thereon or of any termination or
threatened termination of any policy of insurance or bond.

6.19 Title. Borrower has lawful, good, marketable and insurable fee simple title to the
real property comprising part of the Property and lawful and good title to the balance of the
Property, free and clear of all liens, charges, claims, security interests, and encumbrances
whatsoever except the Permitted Encumbrances and such other Liens as are permitted pursuant to the
express provisions of the Loan Documents. None of the Permitted Encumbrances, individually or in
the aggregate, materially interferes with the benefits of the security intended to be provided by
the Loan Documents, materially and adversely impairs the use or operation of the Property or
materially impairs Borrower’s ability to pay its obligations in a timely manner. The Mortgage,
when properly recorded in the appropriate records, together with any Uniform Commercial Code
financing statements required to be filed in connection therewith, will create (a) a valid,
perfected first priority lien on the Property, subject only to Permitted Encumbrances and
(b) perfected security interests in and to, and perfected collateral assignments of, all personalty
(including the Leases), all in accordance with the terms hereof, in each case subject only to
Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the
Liens created by the Loan Documents. There are no claims for payment for work, labor or materials
affecting the Property which are a Lien prior to, or of equal priority with, the Liens created by
the Loan Documents other than Permitted Encumbrances and those for which the Property have received
affirmative insurance in the applicable title insurance policy.

6.20 Sanctions. Neither Borrower, Guarantor, any subsidiary of Borrower or Guarantor nor,
to Borrower’s knowledge, any other Affiliate of Borrower, Guarantor or any subsidiary of Borrower
or Guarantor or any of the partners, directors, officers, employees, agents, trustees,
administrators, managers, advisors and representatives of Borrower, Guarantor or any of Borrower’s
or Guarantor’s subsidiaries or other Affiliates, is an individual or entity currently the subject
of any Sanctions, nor is Borrower, Guarantor or any subsidiary of Borrower or Guarantor located,
organized or resident in a Designated Jurisdiction.

6.21 Usury; Offsets. The terms of this Agreement are not usurious. Borrower has no
offsets, counterclaims or defenses with respect to its Obligations.

6.22 ERISA. (a) Borrower is not (i) an “employee benefit plan,” as defined in Section 3(3)
of ERISA or (ii) a “plan” within the meaning of Section 4975(e) of the Code; (b) the assets of
Borrower do not constitute “plan assets” within the meaning of the United States Department of
Labor Regulations set forth in 29 C.F.R. §2510.3-101; and (c) Borrower is not a “governmental plan”
within the meaning of Section 3(32) of ERISA; (d) transactions by or with Borrower are not subject
to state statutes applicable to Borrower regulating investments of fiduciaries with respect to
governmental plans.

ARTICLE 7 — DEFAULT AND REMEDIES

7.1 Events of Default. The occurrence of any one of the following shall be a default under
this Agreement (“Default”):

(a) any of the Indebtedness is not paid when due, whether on the scheduled due date or upon
acceleration, maturity or otherwise;

(b) any covenant or agreement in this Agreement or in any other Loan Document (other than
covenants to pay the Indebtedness and other than Defaults expressly listed elsewhere in this
Section 7.1) is not fully and timely performed, observed or kept and such failure shall
continue unremedied for more than thirty (30) days after notice thereof shall have been given to
Borrower by Administrative Agent; provided, however, that if such failure is of a
nature such that it cannot be cured by the payment of money and if such failure requires work to be
performed, acts to be done or conditions to be removed which cannot reasonably, with due diligence,
be performed, done or removed, as the case may be, within such thirty (30) day period and Borrower
shall have commenced to cure such failure within such thirty (30) day period, such period shall be
deemed extended for so long as shall be required by Borrower in the exercise of due diligence to
cure such failure, but in no event shall such thirty (30) day period be so extended to be a period
in excess of ninety (90) days;

(c) any statement, representation or warranty in any of the Loan Documents, or in any
Financial Statement or any other writing heretofore or hereafter delivered to Administrative Agent
or any Lender in connection with the Indebtedness, is false, misleading or erroneous in any
material respect on the Closing Date or on the date as of which such statement, representation or
warranty is made;

(d) the occurrence of a default or breach by Guarantor of any obligation under any Loan
Document (taking into account any applicable notice and cure period set forth in such Loan
Document);

(e) the occurrence of any “Termination Event” under any Swap Contract;

(f) Borrower shall fail in the due performance and observance of any of its covenants
contained in Section4.1, 4.3(b) or (c), 4.5, 4.6(a),
4.7(a), 4.12, 4.15, 4.20, 4.21, 4.22, 4.23
or Article 5;

(g) Borrower shall fail in the due performance and observance of any of its covenants
contained in Section, 4.16, 4.17 or 9.23 and such failure shall
continue for ten (10) days after notice thereof shall have been given to Borrower by Administrative
Agent;

(h) a default or event of default occurs under any lien, security interest or assignment
covering the Property other than those created by any of the Loan Documents (whether or not
Administrative Agent has consented, and without hereby implying Administrative Agent’s consent, to
any such lien, security interest or assignment not created hereunder) and is not cured within any
applicable notice or cure period, or the holder of any such lien, security interest or assignment
declares a default or institutes foreclosure or other proceedings for the enforcement of its
remedies thereunder;

(i) Administrative Agent determines that an event or condition that could reasonably be
expected to have a Material Adverse Effect has occurred in the financial condition of Borrower or
any Guarantor or in the condition of the Property and such matter is not remedied within thirty
(30) days after written notice thereof is given to the Borrower by the Administrative Agent or
within sixty (60) days if such matter cannot reasonably be cured within thirty (30) days so long as
a cure is being diligently and continuously pursued;

(j) any Loan Document shall for any reason without Administrative Agent’s specific written
consent cease to be in full force and effect, or shall be declared null and void or unenforceable
in whole or in part, or the validity or enforceability thereof, in whole or in part, shall be
challenged or denied by any party thereto other than Administrative Agent and as a result, the
material benefits of the Loan would not be available to the Lenders or any of them; or the liens,
mortgages or security interests of Administrative Agent in any of the Property become unenforceable
in whole or in part, or cease to be of the priority herein required, or the validity or
enforceability thereof, in whole or in part, shall be challenged or denied by Borrower, Guarantor
or any other Person liable for any of the Indebtedness;

(k) a default or event of default occurs under any document executed and delivered in
connection with Borrower’s financing of the solar panels installed at the Property and continues
beyond any applicable cure or grace period;

(l) the death, incompetency, dissolution or insolvency of Borrower, Guarantor or any other
Person liable for any part of the Indebtedness;

(m) Borrower, Guarantor, or any other Person liable for any part of the Indebtedness (or any
general partner or joint venturer of any of the foregoing):

(i) (A) executes an assignment for the benefit of creditors, or takes any action in
furtherance thereof; or (B) admits in writing its inability to pay, or fails to pay, its
debts generally as they become due; or (C) as a debtor, files a petition, case,
proceeding or other action pursuant to, or voluntarily seeks the benefit or benefits of,
any Debtor Relief Law, or takes any action in furtherance thereof; or (D) seeks the
appointment of a receiver, trustee, custodian or liquidator of the Property or any part
thereof or of any significant portion of its other property; or

(ii) Suffers the filing of a petition, case, proceeding or other action against it
as a debtor under any Debtor Relief Law or seeking appointment of a receiver, trustee,
custodian or liquidator of the Property or any part thereof or of any significant portion
of its other property, and (A) admits, acquiesces in or fails to contest diligently the
material allegations thereof, or (B) the petition, case, proceeding or other action
results in entry of any order for relief or order granting relief sought against it, or
(C) in a proceeding under Debtor Relief Laws, the case is converted from one chapter to
another, or (D) fails to have the petition, case, proceeding or other action permanently
dismissed or discharged on or before the earlier of trial thereon or the sixtieth (60th)
day following the date of its filing; or

(iii) Conceals, removes, or permits to be concealed or removed, any part of its
property, with intent to hinder, delay or defraud its creditors or any of them, or makes
or suffers a transfer of any of its property which may be fraudulent under any fraudulent
conveyance law or Debtor Relief Law; or makes any transfer of its property to or for the
benefit of a creditor at a time when other creditors similarly situated have not been
paid; or suffers or permits, while insolvent, any creditor to obtain a lien (other than
as described in clause (iv) below) upon any of its property through legal
proceedings which are not vacated and such lien is not discharged prior to enforcement
thereof or in any event within sixty (60) days from the date thereof; or

(iv) Fails to have discharged or fully bonded within a period of fifteen (15) days
any attachment, sequestration, or similar writ levied upon any of its property; or

(v) Fails to pay (or cause to be paid) any final and non-appealable money judgment
exceeding $1,000,000 against it within thirty (30) days after the entry of such judgment;
or

(n) A judicial or nonjudicial forfeiture or seizure proceeding is commenced by a Governmental
Authority and remains pending with respect to the Property or any part thereof, on the grounds that
the Property or any part thereof had been used to commit or facilitate the commission of a criminal
offense by any Person, including any tenant, pursuant to any Law, including the Controlled
Substances Act or the Civil Asset Forfeiture Reform Act, regardless of whether or not the Property
or the Mortgage shall become subject to forfeiture or seizure in connection therewith.

(o) Skechers or any Tenant Affiliate (as such term is defined in Section 17 of the Skechers
Lease as in effect on the date hereof) at any time is not in sole possession of one hundred percent
(100%) of the Property pursuant to the Skechers Lease.

7.2 Remedies. Upon the occurrence and during the continuance of a Default, Administrative
Agent at its election may (but shall not be obligated to) without the consent of and shall at the
direction of the Required Lenders, without notice, exercise any and all rights and remedies
afforded by this Agreement, the other Loan Documents, Law, equity or otherwise, including
(a) declaring any and all Indebtedness immediately due and payable (provided that, without
limitation of the foregoing, upon the occurrence of an actual or deemed entry of an order for
relief with respect to Borrower under any Debtor Relief Law, any obligation of Lenders to make
advances shall automatically terminate, and the unpaid principal amount of the Loan outstanding and
all interest and other amounts as aforesaid shall automatically become due and payable, in each
case without further act of Administrative Agent or Lenders); (b) reducing any claim to judgment;
(c) obtaining appointment of a receiver (to which Borrower hereby consents) and/or judicial or
nonjudicial foreclosure under the Mortgage; (d) terminating Lenders’ Commitments; (e) in its own
name on behalf of the Lenders or in the name of Borrower, entering into possession of the Property,
leasing and operating the Property, performing all work and constructing Improvements; and
(f) setting-off and applying, to the extent thereof and to the maximum extent permitted by Law, any
and all deposits, funds, or assets at any time held and any and all other indebtedness at any time
owing by Administrative Agent or any Lender to or for the credit or account of Borrower against any
Indebtedness.

Borrower hereby appoints Administrative Agent as Borrower’s attorney-in-fact, which power of
attorney is irrevocable and coupled with an interest, with full power of substitution if
Administrative Agent so elects, to do any of the following in Borrower’s name upon the occurrence
and during the continuance of a Default: (i) endorse the name of Borrower on any checks or drafts
representing proceeds of any insurance policies, or other checks or instruments payable to Borrower
with respect to the Property; (ii) prosecute or defend any action or proceeding incident to the
Property; (iii) pay, settle, or compromise all bills and claims regarding the Property; (iv)
perform the obligations and exercise the rights of Borrower under all Leases, guaranties and other
agreements to which it is a party or by which the Property is bound, enter into Leases, guaranties
and other agreements regarding the Property and pay all leasing, operating and capital expenses of
the Property; and (v) take over and use all or any part of the labor, materials, supplies and
equipment contracted for, owned by, or under the control of Borrower, whether or not previously
incorporated into the Improvements. Neither Administrative Agent nor any Lender shall have any
liability to Borrower for the sufficiency or adequacy of any such actions taken by Administrative
Agent.

	 	 	 	 	 
	ARTICLE 8 — ADMINISTRATIVE AGENT
	 	8.1	 	 	Appointment and Authorization of Administrative Agent.

	 	 	 	 	 

(a) Each Lender hereby irrevocably (subject to Section 8.9) appoints, designates and
authorizes Administrative Agent to take such action on its behalf under the provisions of this
Agreement and each other Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan Document, together with
such powers as are reasonably incidental thereto. The term “agent” herein and in the other Loan
Documents with reference to Administrative Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any applicable Law. Instead,
such term is used merely as a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

(b) Notwithstanding any provision to the contrary contained elsewhere herein or in any other
Loan Document, Administrative Agent shall not have any duties or responsibilities except those
expressly set forth herein, and its duties and responsibilities shall be administrative in nature.
Without limiting the generality of the foregoing, the Administrative Agent and its Related Parties:

(i) shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, and no implied covenants, functions,
responsibilities, obligations or liabilities shall be read into this Agreement or any
other Loan Document or otherwise exist against Administrative Agent or its Related
Parties;

(ii) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated
hereby or by the other Loan Documents that Administrative Agent is required to exercise
as directed in writing by the Required Lenders (or such other number or percentage of the
Lenders as shall be expressly provided for herein or in the other Loan Documents),
provided that Administrative Agent shall not be required to take any action that,
in its opinion or the opinion of its counsel, may expose Administrative Agent to
liability or that is contrary to any Loan Document or applicable Law, including for the
avoidance of doubt any action that may be in violation of the automatic stay under any
Debtor Relief Law or that may effect a forfeiture, modification or termination of
property of a Defaulting Lender in violation of any Debtor Relief Law; and

(iii) shall not, except as expressly set forth herein and in the other Loan
Documents, have any duty or responsibility to disclose, and shall not be liable for the
failure to disclose, any information relating to Borrower, Guarantor or any of their
Related Parties that is communicated to or obtained by the Person serving as
Administrative Agent or any of its Related Parties in any capacity.

(c) No individual Lender or group of Lenders shall have any right to amend or waive, or
consent to the departure of any party from any provision of any Loan Document, or secure or enforce
the obligations of Borrower or any other party pursuant to the Loan Documents, or otherwise. All
such rights, on behalf of Administrative Agent or any Lender or Lenders, shall be held and
exercised solely by and at the option of Administrative Agent for the pro rata benefit of the
Lenders. Such rights, however, are subject to the rights of a Lender or Lenders, as expressly set
forth in this Agreement, to approve matters or direct Administrative Agent to take or refrain from
taking action as set forth in this Agreement. Except as expressly otherwise provided in this
Agreement or the other Loan Documents, Administrative Agent shall have and may use its sole
discretion with respect to exercising or refraining from exercising any discretionary rights, or
taking or refraining from taking any actions which Administrative Agent is expressly entitled to
exercise or take under this Agreement and the other Loan Documents, including (i) the determination
if and to what extent matters or items subject to Administrative Agent’s satisfaction are
acceptable or otherwise within its discretion, (ii) the making of Administrative Agent Advances,
and (iii) the exercise of remedies pursuant to, but subject to, Article 7 or pursuant to
any other Loan Document and any action so taken or not taken shall be deemed consented to by
Lenders.

(d) In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to
Borrower, Guarantor or any other Person liable for any part of the Indebtedness, no individual
Lender or group of Lenders shall have the right, and Administrative Agent (irrespective of whether
the principal of the Loan shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any demand on Borrower
or any other Person) shall be exclusively entitled and empowered on behalf of itself and the
Lenders, by intervention in such proceeding or otherwise:

(i) to file and prove a claim for the whole amount of the principal and interest
owing and unpaid in respect of the Loan and all other Obligations that are owing and
unpaid and to file such other documents as may be necessary or advisable in order to have
the claims of Lenders and Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of Lenders and Administrative Agent
and their respective agents and counsel and all other amounts due Lenders and
Administrative Agent under Section 9.11 allowed in such judicial proceeding; and

(ii) to collect and receive any monies or other property payable or deliverable on
any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to
Administrative Agent and, in the event that Administrative Agent shall consent to the making of
such payments directly to Lenders, to pay to Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of Administrative Agent and its agents and
counsel, and any other amounts due Administrative Agent under Section 9.11.

Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of Lenders except as approved by
the Required Lenders or to authorize Administrative Agent to vote in respect of the claims of
Lenders except as approved by the Required Lenders in any such proceeding.

8.2 Delegation of Duties; Advice.

(a) Administrative Agent may execute any of its duties under this Agreement or any other Loan
Document by or through one or more sub-agents appointed by Administrative Agent. Administrative
Agent and any such sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties. The exculpatory provisions of this
Article 8 shall apply to any such sub-agent and to the Related Parties of Administrative
Agent and any such sub-agent, and shall apply to their respective activities in connection with the
syndication of the Loan as well as activities as Administrative Agent. Administrative Agent shall
not be responsible for the negligence or misconduct of any sub-agents except to the extent that a
court of competent jurisdiction determines in a final and non appealable judgment that
Administrative Agent acted with gross negligence or willful misconduct in the selection of such
sub-agents.

(b) Administrative Agent shall be entitled to advice of counsel and other consultant experts
concerning all matters pertaining to such duties. Administrative Agent shall not be liable for any
action taken or not taken by it in accordance with the advice of any such counsel or other
consultant experts.

8.3 Liability of Administrative Agent. Neither Administrative Agent nor any Related Party
of Administrative Agent shall (a) be liable to any Lender for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby or thereby (i) with the consent or at the request of the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary), or as
Administrative Agent shall believe in good faith shall be necessary or (ii) in the absence of its
own gross negligence or willful misconduct as determined by a court of competent jurisdiction by
final and nonappealable judgment, or (b) be responsible in any manner to any Lender for any
recital, statement, representation or warranty made by Borrower, Guarantor, any subsidiary or
Affiliate of Borrower or Guarantor, or any other Person, or any officer thereof, contained herein
or in any other Loan Document, or in any certificate, report, statement or other document referred
to or provided for in, or received by Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or any
other party to any Loan Document to perform its obligations hereunder or thereunder. Neither
Administrative Agent nor any Related Party of Administrative Agent shall be under any obligation to
any Lender or participant or any other Person to inspect the properties, books or records of
Borrower, Guarantor, any of their Related Parties or any other Person, or to ascertain or inquire
into (u) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (v) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (w) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (x) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien purported to be created by the Loan Documents, (y) the value or
the sufficiency of any Collateral, or (z) the satisfaction of any condition set forth herein or
therein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

8.4 Reliance by Administrative Agent; Authorized Signers. Administrative Agent is
authorized to rely upon the continuing authority of the Authorized Signers to bind Borrower with
respect to all matters pertaining to the Loan and the Loan Documents, including the selection of
interest rates. Such authorization may be changed only upon written notice addressed to
Administrative Agent accompanied by evidence, reasonably satisfactory to Administrative Agent, of
the authority of the Person giving such notice. Such notice shall be effective not sooner than
five (5) Business Days following receipt thereof by Administrative Agent. Without limitation of
the foregoing, Administrative Agent shall be entitled to rely, and shall be fully protected, and
shall be indemnified by Lenders pursuant to Section 8.7, in relying, upon any writing ,
resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex, telephone
message, email or other electronic (including any Internet or intranet website posting or other
distribution) communication, statement or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel (including counsel to any party to the Loan Documents),
independent accountants and other experts selected by Administrative Agent. In determining
compliance with any condition hereunder to the making of the Loan that by its terms must be
fulfilled to the satisfaction of a Lender, Administrative Agent may presume that such condition is
satisfactory to such Lender unless Administrative Agent shall have received notice to the contrary
from such Lender prior to the making of the Loan. For purposes of determining compliance with the
conditions specified in Exhibit C, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each document or other
matter required thereunder to be consented to or approved by or acceptable or satisfactory to a
Lender unless Administrative Agent shall have received notice from such Lender prior to the
proposed Closing Date specifying its objections. Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Required Lenders or all Lenders if required
hereunder as it deems appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by Lenders against any and all liability and expense which may be incurred by it by
reason of taking or continuing to take any such action. Administrative Agent shall in all cases be
fully protected, and shall be indemnified by Lenders pursuant to Section 8.7, in acting, or
in refraining from acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the Required Lenders or such greater number of Lenders as may be expressly
required hereby in any instance, and such request and any action taken or failure to act pursuant
thereto shall be binding upon all Lenders. In the absence of written instructions from the
Required Lenders or such greater number of Lenders, as expressly required hereunder, Administrative
Agent may take or not take any action, at its discretion, unless this Agreement specifically
requires the consent of the Required Lenders or such greater number of Lenders. Notwithstanding
anything to the contrary herein, in no event shall Administrative Agent be required to take any
action that it determines may expose Administrative Agent to liability or that is contrary to any
Loan Document or applicable Law, including for the avoidance of doubt any action that may be in
violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture,
modification or termination of property of a Defaulting Lender in violation of any Debtor Relief
Law, and Administrative Agent shall be indemnified by Lenders pursuant to Section 8.7 with
respect to such determination.

8.5 Notice of Default. Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Potential Default unless Administrative Agent shall have
received written notice from a Lender or Borrower referring to this Agreement and describing such
Default or Potential Default, and Administrative Agent determines that such Default or such
Potential Default (if it were to become a Default) will have a Material Adverse Effect.
Administrative Agent will notify Lenders of its receipt of any such notice. Administrative Agent
shall take such action with respect to any such Default as may be requested by the Required Lenders
in accordance with Article 7; provided, however, that unless and until
Administrative Agent has received any such request, Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect to such Default as
it shall deem advisable or in the best interest of Lenders.

8.6 Credit Decision; Disclosure of Information by Administrative Agent.

(a) Each Lender acknowledges that neither Administrative Agent nor any Related Party of
Administrative Agent has made any representation or warranty to it, and that no act by
Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of Borrower and Guarantor, shall be deemed to constitute any representation
or warranty by Administrative Agent or any Related Party of Administrative Agent to any Lenders as
to any matter, including whether Administrative Agent or any Related Party of Administrative Agent
have disclosed material information in their possession. Each Lender represents to Administrative
Agent that it has, independently and without reliance upon Administrative Agent or any Related
Party of Administrative Agent and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrower and Guarantor, and all
applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made
its own decision to enter into this Agreement and to extend credit to Borrower and Guarantor
hereunder. Each Lender also represents that it will, independently and without reliance upon
Administrative Agent or any Related Party of Administrative Agent and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and creditworthiness of
Borrower and Guarantor.

(b) Administrative Agent promptly after its receipt shall provide each Lender such notices,
reports and other documents expressly required to be furnished to Lenders by Administrative Agent
herein. To the extent not already available to a Lender, Administrative Agent shall also provide
each Lender and/or make available for such Lender’s inspection during reasonable business hours and
at such Lender’s expense, promptly after such Lender’s written request therefor: (i) copies of the
Loan Documents; (ii) such information as is then in Administrative Agent’s possession in respect of
the current status of principal and interest payments and accruals in respect of the Loan; (iii)
copies of all current financial statements in respect of Borrower, Guarantor or other Person liable
for payment or performance by Borrower of any obligations under the Loan Documents, then in
Administrative Agent’s possession with respect to the Loan; and (iv) other current factual
information then in Administrative Agent’s possession with respect to the Loan and bearing on the
continuing creditworthiness of Borrower or Guarantor, or any of their respective Affiliates;
provided that nothing contained in this Section shall impose any liability upon
Administrative Agent for its failure to provide a Lender any of such Loan Documents, information,
or financial statements, unless such failure constitutes willful misconduct or gross negligence on
Administrative Agent’s part; and provided, further, that Administrative Agent shall
not be obligated to provide any Lender with any information in violation of Law or any contractual
restrictions on the disclosure thereof (provided such contractual restrictions shall not apply to
distributing to a Lender factual and financial information expressly required to be provided
herein). Except as set forth above, Administrative Agent shall not have any duty or responsibility
to provide any Lenders with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of Borrower or Guarantor or
any of their respective Affiliates which may come into the possession of Administrative Agent or
any Related Party of Administrative Agent.

8.7 Indemnification of Administrative Agent. Whether or not the transactions contemplated
hereby are consummated, Lenders hereby indemnify Administrative Agent and each Related Party of
Administrative Agent (to the extent not reimbursed by or on behalf of Borrower and without limiting
the obligation of Borrower to do so), pro rata, and hold harmless Administrative Agent and each
Related Party of Administrative Agent from and against any and all Indemnified Liabilities incurred
by it, including before, during and after any foreclosure of the Mortgage, other exercise of rights
and remedies or sale of the Property; provided, however, that no Lender shall be
liable for the payment to Administrative Agent or any Related Party of Administrative Agent of any
portion of such Indemnified Liabilities to the extent determined in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from such Person’s own gross
negligence or willful misconduct; provided, further, that no action taken in
accordance with the directions of the Required Lenders shall be deemed to constitute gross
negligence or willful misconduct for purposes of this Section. All payments on account of the
foregoing shall be due and payable ten (10) days after demand by Administrative Agent therefor.
Without limitation of the foregoing, to the extent that Administrative Agent is not reimbursed by
or on behalf of Borrower, each Lender shall reimburse Administrative Agent within ten (10) days
after demand for its ratable share of any costs or out-of-pocket expenses (including attorneys’
fees) incurred by Administrative Agent as described in Section 9.11. The undertaking in
this Section shall survive the resignation or replacement of Administrative Agent, any assignment
of rights by, or the replacement of, a Lender, the termination of the Commitments, the termination
of this Agreement and the repayment, satisfaction or discharge of all Obligations.

8.8 Administrative Agent in Individual Capacity. Administrative Agent, in its individual
capacity, and its Affiliates may make loans to, issue letters of credit for the account of, accept
deposits from, acquire equity interests in and securities of, act as the financial advisor or in
any other advisory capacity for and generally engage in any kind of banking, trust, financial,
advisory, underwriting or other business with any party to the Loan Documents and their respective
subsidiaries and other Affiliates as though Administrative Agent was not Administrative Agent
hereunder, without notice to or consent of Lenders and without any duty to account therefor to
Lenders. Lenders acknowledge that Borrower and Bank of America or its Affiliate have entered or
may enter into Swap Transactions. Lenders acknowledge that, pursuant to such activities, Bank of
America or its Affiliates may receive information regarding any party to the Loan Documents, or
their respective Affiliates (including information that may be subject to confidentiality
obligations in favor of such parties or such parties’ Affiliates) and acknowledge that
Administrative Agent shall be under no obligation to provide such information to them. With
respect to its Pro Rata Share of the Loan, Bank of America shall have the same rights and powers
under this Agreement as any other Lenders and may exercise such rights and powers as though it were
not Administrative Agent or party to Swap Transactions, and the terms “Lender” and “Lenders”
include Bank of America in its individual capacity.

8.9 Successor Administrative Agent. Administrative Agent may resign as Administrative
Agent upon thirty (30) days’ notice to Lenders and Borrower. Additionally, if the Person serving
as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition
thereof, the Required Lenders may, to the extent permitted by applicable law, by notice in writing
to Borrower and such Person, remove such Person as Administrative Agent. If Administrative Agent
resigns or is so removed by the Required Lenders under this Agreement, the Required Lenders shall
appoint from among Lenders a successor administrative agent for Lenders, which successor
administrative agent shall be consented to by Borrower at all times other than during the existence
of a Default (which consent of Borrower shall not be unreasonably withheld or delayed). Upon the
acceptance by the successor administrative agent of its appointment as successor administrative
agent hereunder, the retiring Administrative Agent’s resignation or removal, as applicable, shall
be effective, such successor administrative agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such
successor administrative agent, and the retiring Administrative Agent’s appointment, powers and
duties as Administrative Agent shall be terminated. If no successor administrative agent has
accepted appointment as Administrative Agent by the date which is thirty (30) days following a
retiring Administrative Agent’s notice of resignation, or on or before the removal day specified by
Required Lenders in their removal notice to Administrative Agent and Borrower, whichever applies,
then the retiring Administrative Agent may appoint, after consulting with Lenders and Borrower, a
successor administrative agent from among Lenders; provided, however, that the
retiring Administrative Agent’s resignation or removal, as applicable, shall nevertheless become
effective upon such thirtieth (30th) day, or upon the removal day set forth in Required
Lenders’ removal notice, whichever applies, and on such day Lenders shall perform all of the duties
of Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above. After the effective date any retiring Administrative
Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this
Article VIII and other applicable Sections of this Agreement shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative Agent under this
Agreement.

8.10 Releases; Acquisition and Transfers of Collateral.

(a) Lenders hereby irrevocably authorize Administrative Agent to transfer or release any lien
on, or after foreclosure or other acquisition of title by Administrative Agent on behalf of Lenders
to transfer or sell, any Collateral (i) upon the termination of the Commitments, the termination of
all obligations of each Swap Counterparty to advance any funds under any Swap Contract, and payment
and satisfaction in full of all Indebtedness; (ii) constituting a release, transfer or sale of a
lien or Collateral if Borrower will certify to Administrative Agent that the release, transfer or
sale is permitted under this Agreement or the other Loan Documents (and Administrative Agent may
rely conclusively on any such certificate, without further inquiry); or (iii) after foreclosure or
other acquisition of title if approved by the Required Lenders.

(b) If all or any portion of the Collateral is acquired by foreclosure or by deed (or
assignment) in lieu of foreclosure, Administrative Agent shall take title to the Collateral in its
name or by an Affiliate of Administrative Agent, but for the benefit of all Lenders in their Pro
Rata Shares on the date of the foreclosure sale or recordation of the deed (or assignment) in lieu
of foreclosure (the “Acquisition Date”). Administrative Agent and all Lenders hereby
expressly waive and relinquish any right of partition with respect to any collateral so acquired.
After any Collateral is acquired, Administrative Agent shall appoint and retain one or more Persons
(individually and collectively, the “OREO Property Manager”) experienced in the management,
leasing, sale and/or disposition of similar properties.

(c) After consulting with the OREO Property Manager, Administrative Agent shall prepare a
written plan for operation, management, improvement, maintenance, repair, sale and disposition of
the Collateral and a budget for the aforesaid, which may include a reasonable management fee
payable to Administrative Agent (the “Business Plan”). Administrative Agent will deliver
the Business Plan not later than the sixtieth (60th) day after the Acquisition Date to each Lender
with a written request for approval of the Business Plan. If the Business Plan is approved by the
Required Lenders, Administrative Agent and the OREO Property Manager shall adhere to the Business
Plan until a different Business Plan is approved by the Required Lenders. Administrative Agent may
propose an amendment to the Business Plan as it deems appropriate, which shall also be subject to
Required Lender approval. If the Business Plan (as may be amended) proposed by Administrative
Agent is not approved by the Required Lenders, or if sixty (60) days have elapsed following the
Acquisition Date without a Business Plan being proposed by Administrative Agent, any Lender may
propose an alternative Business Plan, which Administrative Agent shall submit to all Lenders for
their approval. If an alternative Business Plan is approved by the Required Lenders,
Administrative Agent may appoint one of the approving Lenders to implement the alternative Business
Plan. Notwithstanding any other provision of this Agreement, unless in violation of an approved
Business Plan or otherwise in an emergency situation, Administrative Agent shall, subject to
Section 8.10(a), have the right but not the obligation to take any action in connection
with the Collateral (including those with respect to all Real Property Taxes, Insurance Premiums,
operation, management, improvement, maintenance, repair, sale and disposition), or any portion
thereof.

(d) Upon request by Administrative Agent or Borrower at any time, Lenders will confirm in
writing Administrative Agent’s authority to sell, transfer or release any such liens of particular
types or items of Collateral pursuant to this Section 8.10; provided,
however, that (i) Administrative Agent shall not be required to execute any document
necessary to evidence such release, transfer or sale on terms that, in Administrative Agent’s
opinion, would expose Administrative Agent to liability or create any obligation or entail any
consequence other than the transfer, release or sale without recourse, representation or warranty,
and (ii) such transfer, release or sale shall not in any manner discharge, affect or impair the
obligations of Borrower other than those expressly being released.

(e) If only two (2) Lenders exist at the time Administrative Agent receives a purchase offer
for Collateral, the consent of the Required Lenders is required pursuant to Section
8.10(a), and one of the Lenders does not consent within ten (10) Business Days after
notification from Administrative Agent, the consenting Lender may, in writing to the other Lender,
offer (“Purchase Offer”) to purchase all of the non-consenting Lender’s right, title and
interest in such Collateral for a purchase price equal to the non-consenting Lender’s Pro Rata
Share of the net proceeds anticipated from such sale of such Collateral (as reasonably determined
by Administrative Agent, including the undiscounted face principal amount of any purchase money
obligation not payable at closing) (“Lender Net Sale Proceeds”). Within ten (10) Business
Days thereafter the non-consenting Lender shall be deemed to have accepted such Purchase Offer
unless the non-consenting Lender notifies Administrative Agent that it elects to purchase all of
the consenting Lender’s right, title and interest in such Collateral for a purchase price payable
by the non-consenting Lender in an amount equal to the consenting Lender’s Pro Rata Share of the
Lender Net Sale Proceeds. Any amount payable hereunder by a Lender shall be due on the earlier to
occur of the closing of the sale of such Collateral or ninety (90) days after receipt by the
non-consenting Lender of the Purchase Offer, regardless of whether such Collateral is sold.

8.11 Application of Payments. Except as otherwise provided below with respect to
Defaulting Lenders, aggregate principal and interest payments, payments for Indemnified Liabilities
and/or foreclosure or sale of the collateral, and net operating income from the collateral during
any period it is owned by Administrative Agent on behalf of Lenders (“Payments”) shall be
apportioned pro rata among Lenders and payments of any fees (other than fees designated for
Administrative Agent’s separate account) shall, as applicable, be apportioned pro rata among
Lenders. All pro rata Payments shall be remitted to Administrative Agent and all such payments
not constituting payment of specific fees, and all proceeds of the Collateral received by
Administrative Agent, shall be applied first, to pay any fees, indemnities, costs, expenses
(including those in Section 8.7) and reimbursements then due to Administrative Agent from
Borrower (including any of the foregoing constituting Administrative Agent Advances, together with
interest thereon); second, to pay any fees, costs, expenses and reimbursements then due to
Lenders from Borrower (including any of the foregoing constituting Administrative Agent Advances,
together with interest thereon, reimbursed by Lenders); third, to pay (on a pari passu
basis) pro rata interest and late charges due in respect of the Indebtedness and regularly
occurring payments under any Swap Contract; fourth, to pay (on a pari passu basis) or
prepay pro rata principal of the Indebtedness and “Settlement Amounts” or “Close-Out Amounts”, and
similar payments, as applicable, payable by Borrower under Swap Transactions; and last, to
Borrower, if required by Law, or Lenders in Pro Rata Share percentages equal to their percentages
at the termination of the Aggregate Commitments.

Notwithstanding anything to the contrary in this Agreement, obligations arising under Swap
Contracts shall be excluded from the application described above in this Section 8.11 if
Administrative Agent has not received a Secured Party Designation Notice, together with such
supporting documentation as Administrative Agent may request, from the applicable Hedge Bank. Each
Hedge Bank not a party to this Agreement that has given the notice contemplated by the preceding
sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of
Administrative Agent pursuant to the terms of this Article VIII for itself and its
Affiliates as if a “Lender” party hereto.

8.12 Administrative Agent Advances.

(a) Administrative Agent is authorized, from time to time, in Administrative Agent’s sole
discretion to make, authorize or determine Additional Advances and other advances, or otherwise
expend funds, on behalf of Lenders (“Administrative Agent Advances”), (i) to pay any costs,
fees and expenses as described in Section 9.11, (ii) when the applicable conditions
precedent set forth in Exhibit C have been satisfied to the extent required by
Administrative Agent, and (iii) when Administrative Agent deems necessary or desirable to preserve
or protect the Collateral or any portion thereof (including those with respect to Real Property
Taxes, Insurance Premiums, operation, management, improvements, maintenance, repair, sale and
disposition) (A) subject to Section 8.5, after the occurrence of a Default, and (B) subject
to Section 8.10, after acquisition of all or a portion of the Collateral by foreclosure or
otherwise.

(b) Administrative Agent Advances shall constitute obligatory advances of Lenders under this
Agreement, shall be repayable on demand and secured by the Collateral, and if unpaid by Lenders as
set forth below shall bear interest at the rate applicable to such amount under the Loan or if no
longer applicable, at the Base Rate. Administrative Agent shall notify each Lender in writing of
each Administrative Agent Advance. Upon receipt of notice from Administrative Agent of its making
of an Administrative Agent Advance, each Lender shall make the amount of such Lender’s Pro Rata
Share of the outstanding principal amount of the Administrative Agent Advance available to
Administrative Agent, in same day funds, to such account of Administrative Agent as Administrative
Agent may designate, (i) on or before 3:00 p.m. (Administrative Agent’s Time) on the day
Administrative Agent provides Lenders with notice of the making of such Administrative Agent
Advance if Administrative Agent provides such notice on or before 12:00 p.m. (Administrative
Agent’s Time), or (ii) on or before 12:00 p.m. (Administrative Agent’s Time) on the Business Day
immediately following the day Administrative Agent provides Lenders with notice of the making of
such Administrative Agent Advance if Administrative Agent provides notice after 12:00 p.m.
(Administrative Agent’s Time).

8.13 Defaulting Lender.

8.13.1 Adjustments. Notwithstanding anything to the contrary contained in this Agreement,
if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a
Defaulting Lender, to the extent permitted by applicable Law:

(a) Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove
any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in
the definition of “Required Lenders” and Section 9.9.

(b) Any payment of principal, interest, fees or other amounts received by Administrative Agent
for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to
Article 7 or otherwise) or received by Administrative Agent from a Defaulting Lender
pursuant to Section 9.7 shall be applied at such time or times as may be determined by
Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting
Lender to Administrative Agent hereunder; second, as Borrower may request (so long as no Default or
Potential Default exists), to the funding of any advance in respect of which such Defaulting Lender
has failed to fund its portion thereof as required by this Agreement, as determined by
Administrative Agent; third, if so determined by Administrative Agent and Borrower, to be held in a
deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future
funding obligations with respect to advances under this Agreement; fourth, to the payment of any
amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction
obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s
breach of its obligations under this Agreement; fifth, so long as no Default or Potential Default
exists, to the payment of any amounts owing to Borrower as a result of any judgment of a court of
competent jurisdiction obtained by Borrower against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting
Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x)
such payment is a payment of the principal amount of any advances in respect of which such
Defaulting Lender has not fully funded its appropriate share, and (y) such advances were made at a
time when the conditions for same, if any, were satisfied or waived, such payment shall be applied
solely to pay the advances of all Non-Defaulting Lenders on a pro rata basis prior to being applied
to the payment of any advances of such Defaulting Lender until such time as all advances are held
by the Lenders pro rata in accordance with the Commitments hereunder. Any payments, prepayments or
other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed
by a Defaulting Lender shall be deemed paid to and redirected by such Defaulting Lender, and each
Lender irrevocably consents hereto.

8.13.2 Defaulting Lender Cure. If Borrower and Administrative Agent agree in writing that
a Lender is no longer a Defaulting Lender, Administrative Agent will so notify the parties hereto,
whereupon as of the effective date specified in such notice and subject to any conditions set forth
therein, that Lender will, to the extent applicable, purchase at par that portion of outstanding
advances of the other Lenders or take such other actions as Administrative Agent may determine to
be necessary to cause the Commitments (and outstanding principal balance of all advances) to be
held on a pro rata basis by the Lenders in accordance with their Pro Rata Shares, whereupon such
Lender will cease to be a Defaulting Lender; provided that no adjustments will be made
retroactively with respect to fees accrued or payments made by or on behalf of Borrower while that
Lender was a Defaulting Lender; and provided, further, that except to the extent
otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to
Lender will constitute a waiver or release of any claim of any party hereunder arising from that
Lender’s having been a Defaulting Lender.

8.14 Benefit. The terms and conditions of this Article are inserted for the sole
benefit of Administrative Agent and Lenders; the same may be waived in whole or in part, with or
without terms or conditions, without prejudicing Administrative Agent’s or Lenders’ rights to later
assert them in whole or in part.

8.15 Co-Agents; Lead Managers. None of the Lenders or other Persons identified on the
facing page or signature pages of this Agreement as a “syndication agent,” “documentation agent,”
“co-agent,” “bookrunner,” or “lead manager,” “arranger,” “lead arranger” or “co-arranger” shall
have any right, power, obligation, liability, responsibility or duty under this Agreement other
than, in the case of such lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified as a “syndication agent,”
“documentation agent,” “co-agent” or “lead manager” shall have or be deemed to have any fiduciary
relationship with any Lenders. Each Lender acknowledges that it has not relied, and will not rely,
on any of Lenders or other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

8.16 Lender Participation in Swap Transactions. If Borrower enters into any Swap
Transaction and Swap Contract with one or more Lenders, such Lender(s) shall notify each other
then-existing Lender of the terms of each such Swap Transaction and each then-existing Lender
(other than a Defaulting Lender) shall have the right in its sole discretion to participate in each
such Swap Transaction pro rata according to such Lender’s Pro Rata Share of the amount of the
applicable Swap Transaction. All such participation interests shall be governed pursuant to
separate documentation.

8.17 Swap Contracts. Except as otherwise expressly set forth herein, no Hedge Bank that
obtains the benefit of the provisions of Section 8.11 or any Collateral by virtue of the
provisions hereof or any Loan Document shall have any right to notice of any action or to consent
to, direct or object to any action hereunder or under any other Loan Document or otherwise in
respect of the Collateral (including the release or impairment of any Collateral) (or to notice of
or to consent to any amendment, waiver or modification of the provisions hereof or any Loan
Document) other than in its capacity as a Lender and, in such case, only to the extent expressly
provided in the Loan Documents. Notwithstanding any other provision of this Article VIII
to the contrary, Administrative Agent shall not be required to verify the payment of, or that other
satisfactory arrangements have been made with respect to, Obligations arising under Swap Contracts
except to the extent expressly provided herein and unless Administrative Agent has received a
Secured Party Designation Notice with respect to the related Swap Obligations, together with such
supporting documentation as Administrative Agent may request, from the applicable Hedge Bank.
Administrative Agent shall not be required to verify the payment of, or that other satisfactory
arrangements have been made with respect to, Obligations arising under Swap Contracts.

ARTICLE 9 — GENERAL TERMS AND CONDITIONS

9.1 Consents; Borrower’s Indemnity. Except where otherwise expressly provided in the Loan
Documents, in any instance where the approval, consent or the exercise of Administrative Agent’s or
Lenders’ judgment is required under any Loan Document, the granting or denial of such approval or
consent and the exercise of such judgment shall be (a) within the sole discretion of Administrative
Agent or Lenders; (b) deemed to have been given only by a specific writing intended for the purpose
given and executed by Administrative Agent or Lenders; and (c) free from any limitation or
requirement of reasonableness. Notwithstanding any approvals or consents by Administrative Agent
or Lenders, neither Administrative Agent nor any Lender has any obligation or responsibility
whatsoever for the adequacy, form or content of any appraisal, environmental, engineering, property
condition or other inspection, audit, report or assessment, any contract, any change order, any
lease, or any other matter incident to the Property. Any appraisal, inspection, audit, report or
assessment of the Property or the books and records of Borrower or Guarantor, or the procuring of
documents and financial and other information, by or on behalf of Administrative Agent shall be for
Administrative Agent’s and Lenders’ protection only, and shall not constitute an assumption of
responsibility to Borrower or anyone else with regard to the condition, value, construction,
maintenance or operation of the Property, or relieve Borrower or Guarantor of any of its
obligations. Neither Administrative Agent nor any Lender shall be liable or responsible for, and
Borrower shall indemnify Administrative Agent, each Lender and each Related Party of Administrative
Agent and each Lender and their respective Affiliates, directors, officers, agents, attorneys and
employees (collectively, the “Indemnitees”) from and against: (a) any claim, action, loss
or cost (including attorneys’ fees and costs) arising from, relating to or otherwise in connection
with (i) the Leases, the Property, the Improvements and the other Collateral, including any defect
therein, (ii) any accounts of Borrower or the Property, (iii)  the protection, preservation,
operation, management, improvement, maintenance, repair, sale and disposition of the Property and
other Collateral (including those with respect to Real Property Taxes, Insurance Premiums, and
leasing costs and broker fees) or (iv) the performance of any obligation of Borrower whatsoever;
(b) any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses and disbursements (including attorneys’ fees and costs) of any
kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any
such Indemnitee in any way relating to or arising out of or in connection with (i) any of the
matters described in the foregoing clause (a), (ii) the execution, delivery, enforcement,
performance or administration of any Loan Document or any other agreement, letter or instrument
delivered in connection with the transactions contemplated thereby or the consummation of the
transactions contemplated thereby, (iii) any Commitment or the Loan, including all claims by any
actual or alleged broker for Borrower or any Related Party of Borrower for brokerage fees in
connection with the Loan or (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory
(including any investigation of, preparation for, or defense of any pending or threatened claim,
investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party
thereto, including all costs and expenses incurred by any Indemnitee in connection with any
subpoena, deposition or otherwise acting as a witness; (c) any and all claims, demands, actions or
causes of action arising out of or relating to the use of Information (as defined in Section
9.6) or other materials obtained through internet, Intralinks or other similar information
transmission systems in connection with this Agreement; and (d) any and all liabilities, losses,
costs or expenses (including attorneys’ fees and costs) that any Indemnitee suffers or incurs as a
result of the assertion of any foregoing claim, demand, action, cause of action or proceeding, or
as a result of the preparation of any defense in connection with any foregoing claim, demand,
action, cause of action or proceeding, in all cases, whether or not an Indemnitee is a party to
such claim, demand, action, cause of action or proceeding and whether it is defeated, successful or
withdrawn, (all of the foregoing, collectively, the “Indemnified Liabilities”);
provided, however, that such indemnity shall not, as to any Indemnitee, be
available to the extent that such liabilities, obligations, losses, damages, penalties, claims,
demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee. Further, Borrower shall not be obligated to
indemnify any of the Indemnitees from matters which relate solely to disputes or disagreements
among Lenders and/or Administrative Agent, or any default by any of the Lenders and/or
Administrative Agent of any of their respective obligations under this Agreement to Borrower or to
each other. Nothing, including any advance or acceptance of any document or instrument, shall be
construed as a representation or warranty, express or implied, to any party by Administrative Agent
or Lenders. All payments on account of the Indemnified Liabilities shall be due and payable ten
(10) days after demand by Administrative Agent therefor. The indemnities in this Section
9.1 shall not terminate upon the release, foreclosure or other termination of the Mortgage but
will survive the release, foreclosure of the Mortgage or conveyance in lieu of foreclosure, the
repayment of the Indebtedness, the discharge and release of the Mortgage and the other Loan
Documents, any bankruptcy or other debtor relief proceeding, and any other event whatsoever.

9.2 Miscellaneous.

9.2.1 Counterparts. This Agreement may be executed in several counterparts (and by
different parties hereto in different counterparts), all of which are identical, and all of which
counterparts together shall constitute one and the same instrument.

9.2.2 Effectiveness; Signature Copies. This Agreement shall become effective when it shall
have been executed by Administrative Agent and when Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of the other parties
hereto. Loan Documents, and all signed certificates and other documents delivered thereunder or in
connection therewith, may be transmitted and/or signed by facsimile or e-mail transmission (e.g.
“pdf” or “tif”). The effectiveness of any such documents and signatures shall, subject to
applicable Law, have the same force and effect as manually-signed originals and shall be binding on
all parties to the Loan Documents. Administrative Agent may also require that any such documents
and signatures be confirmed by a manually-signed original thereof; provided,
however, that the failure to request or deliver the same shall not limit the effectiveness
of any facsimile or e-mail document or signature.

9.2.3 Electronic Signatures. The words “execute,” “execution,” “signed,” “signature,” and
words of like import in any Assignment and Assumption or in any amendment or other modification
hereof (including waivers and consents) shall be deemed to include electronic signatures, the
electronic matching of assignment terms and contract formations on electronic platforms approved by
Administrative Agent, or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act or
any other similar state laws based on the Uniform Electronic Transactions Act.

9.2.4 Severability. A determination that any provision of this Agreement or any other Loan
Document is unenforceable or invalid shall not affect the enforceability or validity of any other
provision and the determination that the application of any provision of this Agreement to any
Person or circumstance is illegal or unenforceable shall not affect the enforceability or validity
of such provision as it may apply to other Persons or circumstances. The parties shall endeavor in
good faith negotiations to replace the unenforceable or invalid provisions with valid provisions
the economic effect of which comes as close as possible to that of the unenforceable or invalid
provisions. The unenforceability or invalidity of a provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting
the foregoing provisions of this Section 9.2.4, if and to the extent that the
enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited
by Debtor Relief Laws, as determined in good faith by Administrative Agent, then such provisions
shall be deemed to be in effect only to the extent not so limited.

9.2.5 Time of the Essence. Time shall be of the essence with respect to Borrower’s
obligations under the Loan Documents.

9.2.6 Governing Law. This Agreement and each other Loan Document (except to the extent
expressly set forth therein), and their respective validity, enforcement and interpretation, shall
be governed by the Laws of the State of Florida (without regard to any conflict of Laws principles)
and applicable United States federal Law.

9.3 Notices.

9.3.1 Modes of Delivery; Changes. Except as otherwise provided herein, all notices, and
other communications required or which any party desires to give under this Agreement or any other
Loan Document shall be in writing. Unless otherwise specifically provided in such other Loan
Document, all such notices and other communications shall be deemed sufficiently given or furnished
if delivered by personal delivery, by nationally recognized overnight courier service, by
registered or certified United States mail, postage prepaid, or by facsimile (with, subject to
Section 9.3.2, a confirmatory duplicate copy sent by one of the other methods of service),
addressed to the party to whom directed or by (subject to Section 9.3.3) electronic mail
addressed to Borrower, at the addresses set forth at the end of this Agreement or to Administrative
Agent or Lenders at the addresses specified for notices on the Schedule of Lenders (unless changed
by similar notice in writing given by the particular party whose address is to be changed). Any
such notice or communication shall be deemed to have been given and received either at the time of
personal delivery or, in the case of courier or mail, as of the date of first attempted delivery at
the address and in the manner provided herein, or, in the case of facsimile, upon receipt;
provided, however, that service of a notice required by any applicable statute
shall be considered complete when the requirements of that statute are met. Notwithstanding the
foregoing, no notice of change of address shall be effective except upon actual receipt. This
Section 9.3 shall not be construed in any way to affect or impair any waiver of notice or
demand provided in any Loan Document or to require giving of notice or demand to or upon any Person
in any situation or for any reason.

9.3.2 Limited Use of Electronic Mail. Electronic mail and internet and intranet websites
may be used only to distribute routine communications, such as financial statements and other
information, and to distribute Loan Documents for execution by the parties thereto, and for other
purposes described herein, and may not be used for any other purpose.

9.3.3 Electronic Delivery.

(a) Documents required to be delivered pursuant to Sections 4.9 and 4.20 and
Exhibits B and J (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed
to have been delivered on the date (i) on which Borrower posts such documents, or provides a link
thereto on Borrower’s website on the Internet at the website address listed on Borrower’s signature
page to this Agreement; or (ii) on which such documents are posted on Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by Administrative Agent); provided
that: (A) Borrower shall deliver paper copies of such documents to Administrative Agent or any
Lender upon its request to Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by Administrative Agent or such Lender and (B) Borrower shall
notify Administrative Agent and each Lender (by facsimile or electronic mail) of the posting of any
such documents and provide to Administrative Agent by electronic mail electronic versions (i.e.,
soft copies) of such documents. Administrative Agent shall have no obligation to request the
delivery of or to maintain paper copies of the documents referred to above, and in any event shall
have no responsibility to monitor compliance by Borrower with any such request by a Lender for
delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

(b) Borrower hereby acknowledges that (i) Administrative Agent and/or Arranger may, but shall
not be obligated to, make available to the Lenders materials and/or information provided by or on
behalf of Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower
Materials on Debt Domain, IntraLinks, Syndtrak or another similar electronic system (the
“Platform”) and (ii) certain of the Lenders (each, a “Public Lender”) may have
personnel who do not wish to receive material non-public information with respect to Borrower or
its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in
investment and other market-related activities with respect to such Person’s securities. Borrower
hereby agrees that so long as Borrower is the issuer of any outstanding debt or equity securities
that are registered or issued pursuant to a private offering or is actively contemplating issuing
any such securities (w) all Borrower Materials that are to be made available to Public Lenders
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (A) by marking Borrower Materials
“PUBLIC,” Borrower shall be deemed to have authorized Administrative Agent, Arranger and Lenders to
treat such Borrower Materials as not containing any material non-public information with respect to
Borrower or its securities for purposes of United States Federal and state securities Laws
(provided, however, that to the extent such Borrower Materials constitute
Information, they shall be treated as set forth in Section 9.6); (B) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the Platform designated
“Public Side Information,” and (C) Administrative Agent and Arranger shall be entitled to treat any
Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of
the Platform not designated “Public Side Information.” Notwithstanding the foregoing, Borrower
shall be under no obligation to mark any Borrower Materials “PUBLIC.”

9.3.4 Reliance by Administrative Agent and Lenders. Administrative Agent and Lenders shall
be entitled to rely and act upon any notices delivered in a manner specified herein purportedly
given by or on behalf of Borrower even if (i) such notices were incomplete, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. Borrower shall
indemnify each Indemnitee from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of Borrower. All
telephonic notices to and other communications with Administrative Agent may be recorded by
Administrative Agent, and each of the parties hereto hereby consents to such recording. If a
Lender does not notify or inform Administrative Agent of whether or not it consents to, or approves
of or agrees to any matter of any nature whatsoever with respect to which its consent, approval or
agreement is required under the express provisions of this Agreement or with respect to which its
consent, approval or agreement is otherwise requested by Administrative Agent, in connection with
the Loan or any matter pertaining to the Loan, within ten (10) Business Days (or such longer period
as may be specified by Administrative Agent) after such consent, approval or agreement is requested
by Administrative Agent, Lender shall be deemed to have given its consent, approval or agreement,
as the case may be, with respect to the matter in question.

9.4 Payments Set Aside. To the extent that any payment by or on behalf of Borrower is made
to Administrative Agent or any Lender, or Administrative Agent or any Lender exercises any right of
set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant
to any settlement entered into by Administrative Agent or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Debtor Relief Law, to a depository (including Administrative Agent, any Lender or its or their
Affiliates) for returned items or insufficient collected funds, or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to be satisfied shall
be revived and continued in full force and effect as if such payment had not been made or such
set-off had not occurred, and (b) each Lender severally agrees to pay to Administrative Agent upon
demand its applicable share of any amount so recovered from or repaid by Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect.

9.5 Successors and Assigns.

(a) Successors and Assigns Generally. Subject to Section 8.14, the provisions
of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder without the prior written consent of
Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
Section 9.5(b), (ii) by way of participation in accordance with the provisions of
Section 9.5(d), or (iii) by way of pledge or assignment of a security interest subject to
the restrictions of Section 9.5(e) (and any other attempted assignment or transfer by any
party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent permitted in Section 9.5(d) and, to
the extent expressly contemplated hereby, the Related Parties of each of Administrative Agent and
Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

(b) Assignments by Lenders. Any Lender may assign to one or more assignees all or a
portion of its rights and obligations under this Agreement (including all or a portion of its
Commitment and Pro Rata Share of the Loan at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

(i) Minimum Amounts.

(A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and Pro Rata Share of the Loan at the time owing to it
or contemporaneous assignments to related Approved Funds that equal at least the
amount specified in Section 9.5(b)(i)(B) in the aggregate or in the case of
an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum
amount need be assigned; and

(B) in any case not described in Section 9.5(b)(i)(A), the aggregate
amount of the Commitment (which for this purpose includes the Pro Rata Share of the
Loan outstanding) or, if the Commitment is not then in effect, the principal
outstanding Pro Rata Share of the Loan that is subject to each such assignment,
determined as of the date the “Effective Date” specified in the Assignment and
Assumption, shall not be less than $10,000,000 unless each of Administrative Agent
and, so long as no Default has occurred and is continuing, Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed).

(ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to its Pro Rata Share of the Loan and the Commitment
assigned.

(iii) Required Consents. No consent shall be required for any assignment
except to the extent required by Section 9.5(b)(i)(B) and, in addition:

(A) the consent of Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) a Default has occurred and is continuing at
the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a
Lender or an Approved Fund; provided that Borrower shall be deemed to have
consented to any such assignment unless it shall object thereto by written notice to
Administrative Agent within five (5) Business Days after having received notice
thereof, and provided, further, that Borrower’s consent shall not be
required during the primary syndication of the Loan; and

(B) the consent of Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required if such assignment is to a Person that is not
a Lender, an Affiliate of such Lender or an Approved Fund with respect to such
Lender.

(iv) Assignment and Assumption. The parties to each assignment shall
execute and deliver to Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount of $3,500 plus the cost of any applicable
endorsement to the Title Insurance or new Title Insurance; provided,
however, that Administrative Agent may, in its sole discretion, elect to waive
such processing and recordation fee in the case of any assignment. The assignee, if it
is not a Lender, shall deliver to Administrative Agent an Administrative Details Reply
Form.

(v) No Assignment to Certain Persons. No such assignment shall be made (A)
to Borrower, Guarantor or any other Person liable for any part of the Obligations or any
Affiliate or Subsidiary of the foregoing, (B) to any Defaulting Lender or any of its
Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any
of the foregoing Persons described in this clause (B), or (C) to a natural
Person.

(vi) Certain Additional Payments. In connection with any assignment of
rights and obligations of any Defaulting Lender hereunder, no such assignment shall be
effective unless and until, in addition to the other conditions thereto set forth herein,
the parties to the assignment shall make such additional payments to Administrative Agent
in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be
outright payment, purchases by the assignee of participations or subparticipations, or
other compensating actions, including funding, with the consent of Borrower and
Administrative Agent, the applicable Pro Rata Share of the Loan previously requested but
not funded by the Defaulting Lender, to each of which the applicable assignee and
assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment
liabilities then owed by such Defaulting Lender to Administrative Agent or any Lender
hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its
full Pro Rata Share of the Loan. Notwithstanding the foregoing, in the event that any
assignment of rights and obligations of any Defaulting Lender hereunder shall become
effective under applicable Law without compliance with the provisions of this Section
9.5(b), then the assignee of such interest shall be deemed to be a Defaulting Lender
for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by Administrative Agent pursuant to Section
9.5(c), from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of this Agreement with respect to Borrower’s obligations surviving
termination of this Agreement); provided, that except to the extent otherwise expressly
agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or
release of any claim of any party hereunder arising from that Lender’s having been a Defaulting
Lender. Upon request by Administrative Agent, Borrower (at its expense) shall execute and deliver
substitute Note(s) to Administrative Agent for the assignee, and, for partial assignments, the
assignor in replacement of the assignor’s then-existing Note (each, a “Replacement Note”).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not
comply with this Section 9.5(b) shall be treated for purposes of this Agreement as a sale
by such Lender of a participation in such rights and obligations in accordance with Section
9.5(d).

(c) Register. Administrative Agent, acting solely for this purpose as an agent of
Borrower (and such agency being solely for tax purposes), shall forward the Assignment and
Assumption and the Replacement Note(s) to the Title Company for issuance of an applicable
endorsement to the Title Insurance or new Title Insurance, and shall maintain at Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it (or the equivalent thereof
in electronic form) and a register for the recordation of the names and addresses of Lenders, and
the Commitments of, and the principal amount (and stated interest) of each Lender’s Pro Rata Share
of the Loan owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive absent manifest error, and
Borrower, Administrative Agent and Lenders shall treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.
The Register shall be available for inspection by Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior written notice.

(d) Participations. Any Lender may at any time, without the consent of, or notice to,
Borrower or Administrative Agent, sell participations to any Person (other than a natural Person, a
Defaulting Lender, Borrower, Guarantor or any Affiliate or Subsidiary of Borrower or Guarantor)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or its Pro Rata Share of the
Loan owing to it); provided that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, (iii) Borrower, Administrative Agent and Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for
the indemnity under Section 8.7 without regard to the existence of any participation.

Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso of Section
9.9 that affects such Participant. Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.1, and 2.4 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to Section 9.5(b) (it being understood
that the documentation required under Section 2.1(e) shall be delivered to the Lender who
sells the participation) to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 9.5(b); provided that such Participant (A) agrees to
be subject to the provisions of Sections 2.6 and 9.12 as if it were an assignee
under Section 9.5(b) and (B) shall not be entitled to receive any greater payment under
Section 2.1 or 2.4, with respect to any participation, than the Lender from whom it
acquired the applicable participation would have been entitled to receive, except to the extent
such entitlement to receive a greater payment results from a Change in Law that occurs after the
Participant acquired the applicable participation. Each Lender that sells a participation agrees,
at Borrower’s written request and expense, to use reasonable efforts to cooperate with Borrower to
effectuate the provisions of Section 2.6 with respect to any Participant. To the extent
permitted by Law, each Participant also shall be entitled to the benefits of Section 9.7 as
though it were a Lender; provided that such Participant agrees to be subject to Section
9.8 as though it were a Lender. Each Lender that sells a participation shall, acting solely
for this purpose as an agent of Borrower, maintain a register on which it enters the name and
address of each Participant and the principal amount (and stated interest) of each Participant’s
interest in the Loan or other obligations under the Loan Documents (the “Participant
Register”); provided that no Lender shall have any obligation to disclose all or any
portion of the Participant Register (including the identity of any Participant or any information
relating to a Participant’s interest in any commitments, loans, letters of credit or its other
obligations under any Loan Document) to any Person except to the extent that such disclosure is
necessary to establish that such commitment, loan, letter of credit or other obligation is in
registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries
in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat
each Person whose name is recorded in the Participant Register as the owner of such participation
for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance
of doubt, Administrative Agent (in its capacity as Administrative Agent) shall have no
responsibility for maintaining a Participant Register.

(e) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release a Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

9.6 Confidentiality. Administrative Agent and each Lender agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such
Information confidential); (b) to the extent requested by any regulatory authority; (c) to the
extent required by applicable Laws or regulations or by any subpoena or similar legal process;
(d) to any other party to this Agreement; (e) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights
hereunder; (f) subject to an agreement containing provisions substantially the same as those of
this Section, to (i) any assignee of or participant in, pledgee of or assignee of a security
interest in, or any prospective assignee of or participant in, or pledgee of or assignee of a
security interest in, any of its rights or obligations under this Agreement, or (ii) any direct or
indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s
or prospective counterparty’s professional advisor) to any Swap Transaction or credit derivative
transaction relating to obligations of Borrower or Guarantor; (g) with the consent of Borrower;
(h) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to Administrative Agent or any Lender on a
nonconfidential basis from a source other than Borrower or Guarantor; or (i) to the National
Association of Insurance Commissioners or any other similar organization. For the purposes of this
Section, “Information” means all information received from Borrower or Guarantor relating
to Borrower or Guarantor or their business, other than any such information that is available to
Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by Borrower or
Guarantor; provided that in the case of information received from Borrower or Guarantor
after the Closing Date, such information is clearly identified in writing at the time of delivery
as confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section 9.6 shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information. Administrative Agent and Lenders may
disclose the existence of this Agreement and the other Loan Documents and information about this
Agreement and the other Loan Documents to market data collectors, similar service providers to the
lending industry, and service providers to Administrative Agent and Lenders in connection with the
administration and management of this Agreement, the Loan and Loan Documents.

9.7 Set-off. In addition to any rights and remedies of Administrative Agent and Lenders
provided by Law, upon the occurrence and during the continuance of any Default, Administrative
Agent and, with the prior written consent of Administrative Agent, each Lender, is authorized at
any time and from time to time, without prior notice to Borrower or any other party to the Loan
Documents, any such notice being waived by Borrower (on its own behalf and on behalf of each party
to the Loan Documents to the fullest extent permitted by Law), to set-off and apply any and all
deposits, general or special, time or demand, provisional or final, any time owing by
Administrative Agent or Lenders hereunder or under any other Loan Document to or for the credit or
the account of such parties to the Loan Documents against any and all Indebtedness, irrespective of
whether or not Administrative Agent or Lenders shall have made demand under this Agreement or any
other Loan Document and although such Indebtedness may be contingent or unmatured or denominated in
a currency different from that of the applicable depositor indebtedness. Each Lender agrees
promptly to notify Borrower and Administrative Agent after any such set-off and application made by
such Lender; provided, however, that the failure to give such notice shall not
affect the validity of such set-off and application.

9.8 Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender
shall obtain on account of the portions of the Loan advanced by it, any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) in excess of its ratable
share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify
Administrative Agent of such fact, and (b) purchase from the other Lenders such participations in
the portions of the Loan made by them as shall be necessary to cause such purchasing Lender to
share the excess payment in respect of such portions of the Loan or such participations, as the
case may be, pro rata with each of them; provided, however, that if all or any
portion of such excess payment is thereafter recovered from the purchasing Lender, such purchase
shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the
purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share
(according to the proportion of (i) the amount of such paying Lender’s required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid
or payable by the purchasing Lender in respect of the total amount so recovered without further
interest thereon. Borrower agrees that any Lender so purchasing a participation from another
Lender may, to the fullest extent permitted by Law, exercise all of its rights of payment
(including the right of set-off), but subject to Section 9.7 with respect to such
participation as fully as if such Lender were the direct creditor of Borrower in the amount of such
participation. Administrative Agent will keep records (which shall be conclusive and binding in
the absence of manifest error) of participations purchased under this Section and will in each case
notify Lenders following any such purchases or repayments. Each Lender that purchases a
participation pursuant to this Section shall from and after such purchase have the right to give
all notices, requests, demands, directions and other communications under this Agreement with
respect to the portion of the Obligations purchased to the same extent as though the purchasing
Lender were the original owner of the Obligations purchased.

9.9 Amendments; Survival. Administrative Agent and Lenders shall be entitled to amend
(whether pursuant to a separate intercreditor agreement or otherwise) any of the terms, conditions
or agreements set forth in Article 8 or as to any other matter in the Loan Documents
respecting payments by and between Administrative Agent and Lenders or the required number of
Lenders to approve or disapprove any matter or to take or refrain from taking any action, without
the consent of Borrower or any other Person or the execution by Borrower or any other Person of any
such amendment or intercreditor agreement. Except as set forth in the previous sentence, no
amendment, waiver, or consent shall be effective unless in writing, signed by the Required Lenders
and Borrower or the applicable party to the Loan Documents, as the case may be, and acknowledged by
Administrative Agent, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; and provided, further, that
no such amendment, waiver or consent shall:

(a) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 7.2), without the written consent of such Lender (it being understood
that a waiver of a Default shall not constitute an extension or increase in any Lender’s
Commitment);

(b) postpone any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to Lenders (or any of them) hereunder or under any
other Loan Document, without the written consent of each Lender directly affected thereby;

(c) reduce the principal of, or the rate of interest specified herein on, any portion of the
Loan, or any fees or other amounts payable hereunder or under any other Loan Document, without the
written consent of each Lender directly affected thereby; provided, however, that
Administrative Agent may waive any obligation of Borrower to pay interest at the Default Rate
and/or late charges for periods of up to thirty (30) days, and only the consent of the Required
Lenders shall be necessary to waive any obligation of Borrower to pay interest at the Default Rate
or late charges thereafter, or to amend the definition of “Default Rate” or “late charges”;

(d) change the percentage of the combined Commitments or of the aggregate unpaid principal
amount of the Loan which is required for the Lenders or any of them to take any action hereunder,
without the written consent of each Lender;

(e) change the definition of “Pro Rata Share” or “Required Lenders” or any other provision
hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify
any rights hereunder or make any determination or grant any consent hereunder, without the written
consent of each Lender;

(f) amend this Section 9.9, or Section 9.8, without the written consent of
each Lender;

(g) permit the sale, transfer, pledge, mortgage or assignment of any Collateral or any direct
or indirect interest in Borrower, except as expressly permitted under the Loan Documents, without
the written consent of each Lender; or

(h) transfer or release any lien on, or after foreclosure or other acquisition of title by
Administrative Agent on behalf of the Lenders transfer or sell, any Collateral except as permitted
in Section 8.10, without the prior written consent of each Lender,

and provided, further, that no amendment, waiver or consent shall, unless in
writing and signed by Administrative Agent in addition to the Lenders required above, affect the
rights or duties of Administrative Agent under this Agreement or any other Loan Document.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or
consent which by its terms requires the consent of all Lenders or each affected Lender may be
effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x)
the Commitment of any Defaulting Lender may not be increased or extended without the consent of
such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or
each affected Lender that by its terms affects any Defaulting Lender disproportionately adversely
relative to other affected Lenders shall require the consent of such Defaulting Lender.

This Agreement shall continue in full force and effect until the Indebtedness is paid in full
and all of Administrative Agent’s and Lenders’ obligations under this Agreement are terminated; and
all representations and warranties and all provisions herein for indemnity of the Indemnitees,
Administrative Agent and Lenders (and any other provisions herein specified to survive) shall
survive the resignation or removal of Administrative Agent, any assignment of rights by, or the
replacement of, any Lender, the termination of the Commitments, the termination of this Agreement
and the repayment, satisfaction or discharge of all other Obligations.

9.10 Several Obligations; No Liability; No Release. Notwithstanding anything to the
contrary set forth in this Agreement or any other Loan Document, (a) the obligations of Lenders
hereunder to make Loan advances and to make payments pursuant to Sections 8.7 and
8.12 are several and not joint and (b) such obligations are and shall remain the several,
and not joint, obligations of Lenders despite that certain of the Loan Documents now or hereafter
may have been or will be executed only by or in favor of Administrative Agent in its capacity as
such, and not by or in favor of Lenders. The failure of any Lender to make any Loan advance or to
make any payment under Section 8.7 or 8.12 on any date required hereunder shall not
relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall
be responsible for the failure of any other Lender to so make its Loan advance or to make its
payment under Section 8.7 or 8.12. Except as may be specifically provided in this
Agreement, no Lender shall have any liability for the acts of any other Lender. No Lender shall be
responsible to Borrower or any other Person to take any action on behalf of another Lender
hereunder or in connection with the financing contemplated herein. In furtherance of the
foregoing, Lenders shall comply with their obligations under the Loan Documents, including the
obligations to make payments pursuant to Sections 8.7 and 8.12 regardless of
(i) the occurrence of any Default hereunder or under any Loan Document; (ii) any failure of
consideration, absence of consideration, misrepresentation, fraud, or any other event, failure,
deficiency, breach or irregularity of any nature whatsoever in the Loan Documents; or (iii) any
bankruptcy, insolvency or other like event with regard to Borrower or Guarantor. Such obligations
of Lenders are in all regards independent of any claims between Administrative Agent and any
Lender.

9.11 Costs and Expenses. Without limiting any Loan Document and to the extent not
prohibited by applicable Laws, Borrower shall pay when due, shall reimburse to Administrative Agent
for the benefit of itself and Lenders on demand and shall indemnify Administrative Agent and
Lenders from, all out-of-pocket fees, costs, and expenses paid or incurred by Administrative Agent
in connection with the negotiation, preparation and execution of this Agreement and the other Loan
Documents (and any amendments, approvals, consents, waivers and releases requested, required,
proposed or done from time to time), or in connection with the disbursement, administration or
collection of the Loan or the enforcement of the obligations of Borrower or the exercise of any
right or remedy of Administrative Agent, including (a) all reasonable fees and expenses of
Administrative Agent’s counsel; (b) fees and charges of inspector and engineer engaged by
Administrative Agent; (c) appraisal, re-appraisal and survey costs; (d) title insurance charges and
premiums; (e) title search or examination costs, including abstracts, abstractors’ certificates and
Uniform Commercial Code searches; (f) judgment and tax lien searches for Borrower and each
Guarantor; (g) escrow fees; (h) fees and costs of environmental investigations, site assessments
and remediations; (i) recordation taxes, documentary taxes, transfer taxes and mortgage taxes; (j)
filing and recording fees; and (k) loan brokerage fees. Borrower shall pay all costs and expenses
incurred by Administrative Agent, including reasonable attorneys’ fees, if the obligations or any
part thereof are sought to be collected by or through an attorney at law, whether or not involving
probate, appellate or administrative proceedings or proceedings under any Debtor Relief Law.
Borrower shall pay all costs and expenses of complying with the Loan Documents. Borrower’s
obligations under this Section shall survive the delivery of the Loan Documents, the making of
advances, the repayment, satisfaction or discharge of all other Obligations, the termination of the
Commitments, the resignation or replacement of Administrative Agent, any assignment of rights by,
or the replacement of, a Lender, the termination of this Agreement, the release or reconveyance of
any of the Loan Documents, the foreclosure of the Mortgage or conveyance in lieu of foreclosure,
any proceeding under any Debtor Relief Law, and any other event whatsoever. Borrower acknowledges
that Administrative Agent may receive a benefit, including a discount, credit or other
accommodation, from Administrative Agent’s counsel based on the fees such counsel may receive on
account of such counsel’s relationship with Administrative Agent, including fees paid in connection
with this Agreement.

9.12 Replacement of Lenders. If Borrower is entitled to replace a Lender pursuant to the
provisions of Section 2.6, or if any Lender is a Defaulting Lender or a Non-Consenting
Lender, then Borrower may, at its sole expense and effort, upon notice to such Lender and
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section 9.5),
all of its interests, rights (other than its existing rights to payments pursuant to
Sections 2.1 and 2.4) and obligations under this Agreement and the related Loan
Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment), provided that:

(a) Borrower shall have paid to Administrative Agent the assignment fee (if any) specified in
Section 9.5(b) and the other conditions set forth in Section 9.5(b) shall have been
satisfied;

(b) such Lender shall have received payment of an amount equal to the Principal Debt owing to
it, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under
the other Loan Documents from the assignee (to the extent of such Principal Debt and accrued
interest and fees) or Borrower (in case of all other amounts);

(c) in the case of any such assignment resulting from a claim for compensation under
Section 2.4 or payments required to be made pursuant to Section 2.1, such
assignment will result in a reduction in such compensation or payments thereafter; and

(d) such assignment does not conflict with applicable Laws; and

(e) in the case of an assignment resulting from a Lender becoming a Non-Consenting Lender, the
applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling Borrower to require
such assignment and delegation cease to apply.

9.13 Further Assurances. Borrower will, upon Administrative Agent’s request, (a) promptly
correct any defect, error or omission in any Loan Document; (b) execute, acknowledge, deliver,
procure, record or file such further instruments and do such further acts as Administrative Agent
deems necessary, desirable or proper to carry out the purposes of the Loan Documents and to
identify and subject to the liens and security interest of the Loan Documents any property intended
to be covered thereby, including any renewals, additions, substitutions, replacements, or
appurtenances to the Property; (c) execute, acknowledge, deliver, procure, file or record any
document or instrument Administrative Agent deems necessary, desirable, or proper to protect the
liens or the security interest under the Loan Documents against the rights or interests of third
persons; and (d) provide such certificates, documents, reports, information, affidavits and other
instruments and do such further acts deemed necessary, desirable or proper by Administrative Agent
or any Lender to comply with the requirements of any Governmental Authority having jurisdiction
over Administrative Agent or such Lender. In addition, at any time, and from time to time, upon
request by Administrative Agent or any Lender, Borrower will, at Borrower’s expense, provide any
and all further instruments, certificates and other documents as may, in the opinion of
Administrative Agent or such Lender, be necessary or desirable in order to verify Borrower’s
identity and background in a manner satisfactory to Administrative Agent or such Lender.

9.14 Inducement to Lenders. The representations, warranties, covenants, and agreements
contained in this Agreement and the other Loan Documents (a) are made to induce Lenders to make the
Loan and extend any other credit to or for the account of Borrower pursuant hereto, and
Administrative Agent and Lenders are relying thereon, and will continue to rely thereon, and (b)
shall survive any foreclosure, any conveyance (or assignment) in lieu of foreclosure, or any
proceedings under any Debtor Relief Law involving Borrower, Guarantor or the Property.

9.15 Forum. Borrower hereby irrevocably submits generally and unconditionally for itself
and in respect of its property to the non-exclusive jurisdiction of any state court, or any United
States federal court, sitting in the State specified in Section 9.2 of this Agreement and
to the non-exclusive jurisdiction of any state court or any United States federal court, sitting in
the state in which any of the Property is located, over any suit, action or proceeding arising out
of or relating to this Agreement, the other Loan Documents or the Obligations. Borrower hereby
irrevocably waives, to the fullest extent permitted by Law, any objection that they may now or
hereafter have to the laying of venue in any such court and any claim that any such court is an
inconvenient forum. Borrower hereby agrees and consents that, in addition to any methods of
service of process provided for under applicable Law, all service of process in any such suit,
action or proceeding in any state court, or any United States federal court, sitting in the State
specified in Section 9.2 may be made by certified or registered mail, return receipt
requested, directed to such party at its address for notice stated in the Loan Documents, or at a
subsequent address of which Administrative Agent received actual notice from Borrower in accordance
with the Loan Documents, and service so made shall be complete five (5) days after the same shall
have been so mailed. Nothing herein shall affect the right of Administrative Agent to serve
process in any manner permitted by Law or limit the right of Administrative Agent to bring
proceedings against any party in any other court or jurisdiction.

9.16 Interpretation. References to Articles, Sections, and Exhibits are, unless specified
otherwise, references to articles, sections and exhibits of this Agreement. Captions and headings
in the Loan Documents are for convenience only and shall not affect the construction of the Loan
Documents. All references (a) to the Loan Documents are to the same as extended, amended,
restated, supplemented or otherwise modified from time to time unless expressly indicated
otherwise, and (b) to the Land, the Improvements or the Property shall mean all or any portion of
each of the foregoing, respectively. References to “Dollars,” “$,”
“money,” “payments” or other similar financial or monetary terms are references to
lawful money of the United States of America. Words of any gender shall include each other gender.
Words in the singular shall include the plural and words in the plural shall include the singular.
References to Borrower or Guarantor shall mean, each Person comprising same, jointly and
severally. The words “herein,” “hereof,” “hereunder” and other similar
compounds of the word “here” shall refer to this entire Agreement (including the attached
exhibits) and not to any particular Article, Section, paragraph or provision. The terms
“agree” and “agreements” mean and include “covenant” and
“covenants”. The words “include” and “including” shall be interpreted as
if followed by the words “without limitation”.

9.17 No Partnership, etc. The relationship between Lenders (including Administrative
Agent) and Borrower is solely that of lender and borrower. Neither Administrative Agent nor any
Lender has any fiduciary or other special relationship with or duty to Borrower and none is created
by the Loan Documents. Nothing contained in the Loan Documents, and no action taken or omitted
pursuant to the Loan Documents, is intended or shall be construed to create any partnership, joint
venture, association, or special relationship between Borrower and Administrative Agent or any
Lender or in any way make Administrative Agent or any Lender a co-principal with Borrower with
reference to the Property or otherwise. In no event shall Administrative Agent’s or Lenders’
rights and interests under the Loan Documents be construed to give Administrative Agent or any
Lender the right to control, or be deemed to indicate that Administrative Agent or any Lender is in
control of, the business, properties, management or operations of Borrower.

9.18 Commercial Purpose. Borrower warrants that the Loan is being made solely to acquire
or carry on a business or commercial enterprise, and/or Borrower is a business or commercial
organization. Borrower further warrants that all of the proceeds of the Loan shall be used for
commercial purposes and stipulates that the Loan shall be construed for all purposes as a
commercial loan, and is made for other than personal, family, household or agricultural purposes.

9.19 Usury. It is expressly stipulated and agreed to be the intent of Borrower,
Administrative Agent and Lenders at all times to comply with applicable state Law or applicable
United States federal Law (to the extent that it permits a Lender to contract for, charge, take,
reserve, or receive a greater amount of interest than under state Law) and that this Section
9.19 shall control every other covenant and agreement in this Agreement, the Notes and the
other Loan Documents. If applicable state or federal Law should at any time be judicially
interpreted so as to render usurious any amount called for under any of the Loan Documents, or
contracted for, charged, taken, reserved, or received with respect to the Loan, or if
Administrative Agent’s exercise of the option to accelerate the Maturity Date, or if any prepayment
by Borrower results in Borrower having paid any interest in excess of that permitted by applicable
Law, then it is Administrative Agent’s and each Lender’s express intent that all excess amounts
theretofore collected by Administrative Agent or any Lender shall be credited on the Principal Debt
and all other Indebtedness and the provisions of the Loan Documents shall immediately be deemed
reformed and the amounts thereafter collectible hereunder and thereunder reduced, without the
necessity of the execution of any new documents, so as to comply with the applicable Law, but so as
to permit the recovery of the fullest amount otherwise called for hereunder or thereunder. All
sums paid or agreed to be paid to Lenders 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 Loan does not exceed the maximum lawful rate from time to time in effect and
applicable to the Loan for so long as the Loan is outstanding.

9.20 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
OR ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTE, THE
MORTGAGE, OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO HEREBY:
(a) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER; (b) ACKNOWLEDGES THAT THIS WAIVER AND THE PROVISIONS OF THIS SECTION
WERE A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE LOAN DOCUMENTS; (c) CERTIFIES THAT
THIS WAIVER IS KNOWINGLY, WILLINGLY, AND VOLUNTARILY MADE; (d) AGREES AND UNDERSTANDS THAT THIS
WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH PROCEEDING
OR ACTION, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS OR ANY OTHER AGREEMENT, AND
FURTHER AGREES THAT SUCH PARTY SHALL NOT SEEK TO CONSOLIDATE ANY SUCH PROCEEDING OR ACTION WITH ANY
OTHER PROCEEDING OR ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; (e) AGREES THAT
BORROWER, ADMINISTRATIVE AGENT AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION
IN ANY PROCEEDING OR ACTION AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL; AND (f) REPRESENTS
AND WARRANTS THAT SUCH PARTY HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE
MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL.

9.21 Service of Process. Borrower hereby consents to process being served in any suit,
action, or proceeding instituted in connection with the Loan by (a) the mailing of a copy thereof
by certified mail, postage prepaid, return receipt requested, to Borrower and (b) serving a copy
thereof upon the agent designated and appointed by Borrower as Borrower’s agent for service of
process. Borrower irrevocably agrees that such service shall be deemed to be service of process
upon Borrower in any such suit, action, or proceeding. Nothing herein or in any other Loan
Document shall (i) affect the right of Administrative Agent to serve process in any manner
otherwise permitted by Law or (ii) limit the right of Administrative Agent on behalf of the Lenders
otherwise to bring proceedings against Borrower in the courts of any jurisdiction or jurisdictions.

9.22 No Delays; Defaults. No delay or omission of Administrative Agent or Lenders to
exercise any right, power or remedy accruing upon the happening of a Default shall impair any such
right, power or remedy or shall be construed to be a waiver of any such Default or any acquiescence
therein. No delay or omission on the part of Administrative Agent or Lenders to exercise any
option for acceleration of the maturity of the Indebtedness, or for foreclosure of the Mortgage
following any Default as aforesaid, or any other option granted to Administrative Agent and Lenders
hereunder in any one or more instances, or the acceptances by Administrative Agent or Lenders of
any partial payment on account of the Obligations, shall constitute a waiver of any such Default,
and each such option shall remain continuously in full force and effect. No remedy herein
conferred upon or reserved to Administrative Agent and/or Lenders is intended to be exclusive of
any other remedies provided for in any Note or any of the other Loan Documents, and each and every
such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder, or
under any Note or any of the other Loan Documents, or now or hereafter existing at Law or in equity
or by statute. Every right, power and remedy given to Administrative Agent and Lenders by this
Agreement, any Note or any of the other Loan Documents shall be concurrent, and may be pursued
separately, successively or together against Borrower, Guarantor, any other Person liable for any
part of the Obligations, the Property, or any other Collateral, and every right, power and remedy
given by this Agreement, any Note or any of the other Loan Documents may be exercised from time to
time as often as may be deemed expedient by the Required Lenders. No application of payments will
cure any Default, or prevent acceleration, or continued acceleration, of amounts payable under the
Loan Documents, or prevent the exercise, or continued exercise, of rights or remedies of
Administrative Agent and Lenders hereunder or thereunder or at Law or in equity.

9.23 USA Patriot Act Notice. Each Lender that is subject to the Patriot Act (as
hereinafter defined) and Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain,
verify and record information that identifies Borrower, which information includes the name and
address of Borrower and other information that will allow such Lender or Administrative Agent, as
applicable, to identify Borrower in accordance with the Patriot Act. Borrower shall, promptly
following a request by Administrative Agent or any Lender, provide all documentation and other
information that Administrative Agent or such Lender requests in order to comply with its ongoing
obligation under “know your customer” and anti-money laundering rules and regulations, including
the Patriot Act.

9.24 Entire Agreement. The Loan Documents constitute the entire understanding and
agreement between and among Borrower, Administrative Agent and Lenders with respect to the
transactions arising in connection with the Loan, and supersede all prior written or oral
understandings and agreements between and among Borrower, Administrative Agent and Lenders with
respect to the matters addressed in the Loan Documents. In particular, and without limitation, the
terms of any commitment letter, letter of intent or quote letter by Administrative Agent or any
Lender to make the Loan are merged into the Loan Documents. Neither Administrative Agent nor any
Lender has made any commitments to extend the term of the Loan past its stated maturity date or to
provide Borrower with financing except as set forth in the Loan Documents. Except as incorporated
in writing into the Loan Documents, there are not, and were not, and no Persons are or were
authorized by Administrative Agent or any Lender to make, any representations, understandings,
stipulations, agreements or promises, oral or written, with respect to the matters addressed in the
Loan Documents.

BORROWER FURTHER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, IN CONNECTION WITH ANY SUIT,
ACTION OR PROCEEDING BROUGHT BY OR ON BEHALF OF ADMINISTRATIVE AGENT OR LENDERS WITH RESPECT TO
THIS AGREEMENT, THE NOTES OR OTHERWISE IN RESPECT OF THE LOAN, ANY AND EVERY RIGHT BORROWER MAY
HAVE TO (X) INTERPOSE ANY COUNTERCLAIM THEREIN, OTHER THAN A COMPULSORY COUNTERCLAIM, AND (Y) HAVE
THE SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT, ACTION OR PROCEEDING. NOTHING CONTAINED IN
THE IMMEDIATELY PRECEDING SENTENCE SHALL PREVENT OR PROHIBIT BORROWER FROM INSTITUTING OR
MAINTAINING A SEPARATE ACTION AGAINST LENDER WITH RESPECT TO ANY ASSERTED CLAIM.

9.25 Limitation on Liability. To the fullest extent permitted by applicable Law, Borrower
shall not assert, and Borrower hereby waives, and acknowledges that no other Person shall have, any
claim against any Indemnitee, on any theory of liability, for special, indirect, incidental,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loan or the
use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed to such unintended
recipients by such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual damages resulting from
the gross negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

9.26 Third Parties; Benefit. All conditions to the obligation of Lenders or Administrative
Agent to make advances hereunder are imposed solely and exclusively for the benefit of Lenders,
Administrative Agent and their assigns and no other Persons shall have standing to require
satisfaction of such conditions in accordance with their terms or be entitled to assume that
Lenders or Administrative Agent will refuse to make advances in the absence of strict compliance
with any or all thereof and no other Person shall, under any circumstances, be deemed to be the
beneficiary of such conditions, any or all of which may be freely waived in whole or in part by
Lenders or Administrative Agent at any time in the sole and absolute exercise of their discretion.
Subject to Section 8.14, the provisions of this Agreement and, except to the extent
expressly set forth therein, each other Loan Document, are for the sole benefit of Administrative
Agent, Lenders and Borrower, and no other Person shall have any right or cause of action on account
thereof or interest therein.

9.27 Other Transactions. In connection with all aspects of each transaction contemplated
hereby (including in connection with any amendment, waiver or other modification hereof or of any
other Loan Document), Borrower acknowledges and agrees, and acknowledges Guarantor’s and Borrower’s
other Affiliates’ understanding, that: (a) (i) the arranging and other services regarding this
Agreement provided by the Administrative Agent, the Arranger, and the Lenders are arm’s-length
commercial transactions between Borrower, Guarantor and their respective Affiliates, on the one
hand, and Administrative Agent, the Arranger, and the Lenders, on the other hand, (ii) each of
Borrower and Guarantor has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate, and (iii) each of Borrower and Guarantor is capable of
evaluating, and understands and accepts, the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents; (b) (i) Administrative Agent, the Arranger and
each Lender is and has been acting solely as a principal and, except as expressly agreed in writing
by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or
fiduciary for Borrower, Guarantor or any of their respective Affiliates, or any other Person and
(ii) neither Administrative Agent, the Arranger, nor any Lender has any obligation to Borrower,
Guarantor or any of their respective Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other Loan Documents; and
(c) Administrative Agent, the Arranger, the Lenders and their respective Affiliates may be engaged
in a broad range of transactions that involve interests that differ from those of Borrower,
Guarantor and their respective Affiliates, and neither Administrative Agent, the Arranger, nor any
Lender has any obligation to disclose any of such interests to Borrower, Guarantor or any of their
respective Affiliates.  To the fullest extent permitted by law, each of Borrower and Guarantor
hereby waives and releases any claims that it may have against Administrative Agent, the Arranger
or any Lender with respect to any breach or alleged breach of agency or fiduciary duty in
connection with any aspect of any transaction contemplated hereby.

9.28 Additional Representations.

(a) On each date on which a Swap Transaction is entered into, Borrower will be deemed to
represent to Administrative Agent and Lenders that Borrower is a Qualified ECP Borrower (or if any
Affiliate of Borrower entered into such Swap Transaction, that each such Affiliate is a Qualified
ECP Borrower (assuming for this purpose only that such Affiliate was a “Borrower” hereunder)

(b) On each date on which a Swap Transaction is entered into, each guarantor, if any, of
Borrower’s (or any such Affiliate’s) Swap Obligations that are included as part of the indebtedness
and/or obligations the payment and/or performance of which are guaranteed by such guarantor is an
“eligible contract participant,” as such term is defined in the Commodity Exchange Act.

IN WITNESS WHEREOF, THIS AMENDED AND RESTATED LOAN AGREEMENT IS EXECUTED AND DELIVERED AS OF
THE DATE FIRST ABOVE WRITTEN.

	 	 	 
	WITNESS/ATTEST:

	 	BORROWER:
	CM. Colucci

Name: Christina M. Colucci

Borrower’s Address for Notices:

c/o Highland Fairview Properties

14225 Corporate Way

Moreno Valley, CA 92553

Telephone: (951) 867-5301

Facsimile: (951) 242-9165

Electronic Mail: iddo@highlandfairview.com

With a copy to:

TG Services Inc.

4 Stage Coach Run

East Brunswick, NJ 08816

Attn: James Lieb, EVP

Telephone: (732) 390-9400

Facsimile: (732) 390-3319

Electronic Mail: jimlieb@trumpgroup.com

	 	HF LOGISTICS-SKX T1, LLC, a

Delaware limited liability company

By: HF Logistics-SKX, LLC, a

Delaware limited liability company,

its sole member

By: HF Logistics I, LLC, a Delaware

limited liability company, its

managing member

By: /s/ Iddo Benzeevi

—

Name: Iddo Benzeevi

Title: President and Chief

Executive Officer

	 

	 	

	Borrower’s Federal Tax Identification Number:

	 	

	27-1865350

Borrower’s Organizational Identification

Number:

	 	

	4786545

	 	

A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

	 	 	 	 	 
	STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

	 	)

)

)
	 	

ss

On August 5, 2015 before me, J. Moore, Notary Public, personally appeared Iddo Benzeevi, who
proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his authorized capacity, and
that by his signature on the instrument the person, or the entity upon behalf of which the person
acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.

WITNESS my hand and official seal.

/s/ J Moore      

NOTARY PUBLIC

[SEAL]

1

	 	 	 
	 
	WITNESS/ATTEST:

/s/ Carolyn Champion

Name: Carolyn Champion
	 	BANK OF AMERICA, N.A.,

a national banking association, individually as

Administrative Agent, and a Lender

By: /s/ Brenda Dawkins

	 	 	 

	 	 	Name: Brenda Dawkins

	 	 	 

	 	 	Title: VP

	 
	 	 

	STATE OF NORTH CAROLINA )
)ss.:
COUNTY OF MECKLENBURG )
On the 6th day of August in the year 2015, before me, the undersigned, a notary public in and for
said state, personally appeared Brenda Dawkins, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her capacity, and that by his/her signature on the
instrument, the individual, or the person on behalf of which the individual acted, executed the instrument.
/s/ Leslie
BeCoats—
 
Notary Public
Commission expires: 9/21/2018
[Seal]

[Signature Page for Amended and Restated Loan Agreement]

2

	 	 	 
	 	 	RAYMOND JAMES BANK, N.A., a national banking association, as
	 	 	a Lender,
	WITNESS/ATTEST:	 	 
	/s/ Erica Medina	 	By:	/s/ Alexander L. Rody
	 	 	Name: Alexander L. Rody
	Name: Erica Medina	 	Title: Senior Vice President
	STATE OF TENNESSEE
COUNTY OF DAVIDSON
On the 11th day of August in the year 2015, before me, the undersigned, a notary public in and for said
state, personally appeared Alexander L. Rody, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she
executed the same in his/her capacity, and that by his/her signature on the instrument, the individual, or the
person on behalf of which the individual acted, executed the instrument.
/s/ Jennie E.
Butler—
 
Notary Public
Commission expires:
My commission expires March 08, 2016
[Seal]

[Signature Page for Amended and Restated Loan Agreement]

3

	 	 	 
	 
	WITNESS/ATTEST:

/s/ Trenton Riggs
	 	CIT BANK, N.A., a national banking association, as a

Lender

By: /s/ John Farrace

	 
	 	 

	 	 	Name: John Farrace

	 	 	 

	Name: Trenton Riggs
	 	Title: Managing Director

	 
	 	 

A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

	 	 	 	 	 
	STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

	 	)

)

)
	 	

ss

On August 11, 2015 before me, Linda Dahlgren, Notary Public, personally appeared John Farrace,
who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his authorized capacity,
and that by his signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.

WITNESS my hand and official seal.

/s/ Linda Dahlgren      

NOTARY PUBLIC

[SEAL]

[Signature Page for Amended and Restated Loan Agreement]

4

EXHIBIT A

LEGAL DESCRIPTION OF LAND

PARCEL 1 OF PARCEL MAP NO. 35629, IN THE CITY OF MORENO VALLEY, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS PER THE MAP THEREOF RECORDED ON AUGUST 26, 2010 IN BOOK 231, PAGES 77-82 OF PARCEL
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA.

5

EXHIBIT B

DEFINITIONS AND FINANCIAL STATEMENTS

1. DEFINITIONS: As used in this Agreement and the attached exhibits, the following
terms shall have the following meanings:

“Additional Financial Reporting” means (i) Financial Statements and/or Property
Schedules requested more frequently than quarterly and/or (ii) such additional information, reports
and statements respecting the Property and the Improvements, or the business operations and
financial condition of each reporting party, as Administrative Agent may reasonably request.

“Additional Interest” means all payments required to be made by Borrower under a Swap
Contract.

“Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

“Administrative Agent Advances” has the meaning set forth in Section 8.12(a).

“Administrative Agent’s Office” means Administrative Agent’s address and, as
appropriate, account as set forth on the Schedule of Lenders, or such other address or account as
Administrative Agent hereafter may from time to time notify Borrower and Lenders.

“Administrative Agent’s Time” means the time of day observed in the city where
Administrative Agent’s Office is located.

“Administrative Details Reply Form” means an Administrative Details Reply Form in a
form approved by Administrative Agent.

“Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

“Aggregate Commitments” means the Commitments of all Lenders.

“Agreement” has the meaning set forth in the introductory paragraph of this Agreement,
and includes all exhibits attached hereto and referenced in Section 1.1.

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

“Arranger” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, in its capacity
as sole arranger and sole bookrunner.

“Assignment and Assumption” means an Assignment and Assumption substantially in the
form of Exhibit F.

“Authorized Signer” means any signer of this Agreement on behalf of Borrower, acting
alone, or any other representative of Borrower duly designated and authorized by Borrower in a
writing addressed to Administrative Agent to bind Borrower with respect to all matters pertaining
to the Loan and the Loan Documents, including the selection of interest rates.

“Bank of America” means Bank of America, N.A. and its successors.

“Bankruptcy Code” means Title 11 of the United States Code, as in effect from time to
time.

“Base Rate” means, for any day, a fluctuating rate per annum equal to the Base Rate
Margin plus the higher of (a) the Federal Funds Rate plus 1/2 of 1%, and (b) the rate of interest in
effect for such day as publicly announced from time to time by Bank of America as its “Prime Rate.

“Base Rate Margin” means one percent (1%) per annum.

“Base Rate Principal” means, at any time, the Principal Debt minus the portion, if
any, of such Principal Debt which is LIBOR Rate Principal.

“Borrower” has the meaning set forth in the introductory paragraph of this Agreement.

“Borrower Materials” has the meaning set forth in Section 9.3.4(b).

“Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where Administrative Agent’s Office is located.

“Business Plan” has the meaning set forth in Section 8.10(c).

“Casualty” means any act or occurrence of any kind or nature that results in damage,
loss or destruction to the Property.

“Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in the
administration, interpretation, implementation or application thereof by any Governmental
Authority, or (c) the making or issuance of any request, rule, guideline, or directive (whether or
not having the force of Law) by any Governmental Authority; provided that notwithstanding
anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, rules, guidelines or directives thereunder or issued in connection therewith and
(y) all requests, rules, guidelines, or directives promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority), or
the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in
each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, or issued.

“Civil Asset Forfeiture Reform Act” means the Civil Asset Forfeiture Reform Act of
2000 (18 U.S.C. Sections 983 et seq.), as amended from time to time, and any
successor thereto.

“Closing Date” means the date of this Agreement.

“Collateral” has the meaning set forth in Section 1.2 of the Mortgage.

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Commitment” means, as to each Lender, its obligation to advance its Pro Rata Share of
the Loan in an aggregate principal amount not exceeding the amount set forth opposite such Lender’s
name on the Schedule of Lenders at any one time outstanding, as such amount may be reduced or
adjusted from time to time in accordance with this Agreement.

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et
seq.), as amended from time to time, and any successor statute.

“Condemnation” means any taking of title to, use of, or any other interest in the
Property under the exercise of the power of condemnation or eminent domain, whether temporarily or
permanently, by any Governmental Authority or by any other Person acting under or for the benefit
of a Governmental Authority.

“Condemnation Awards” means any all judgments, awards of damages (including severance
and consequential damages), payments, proceeds, settlements, amounts paid for a taking in lieu of
Condemnation, or other compensation hereafter made, including interest thereon, and the right to
receive the same, as a result of, or in connection with, any Condemnation or threatened
Condemnation.

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured
by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

“Constituent Member” means the constituent members or other direct equity owners of a
Person and for clarification, the Constituent Member of the Borrower is HF Logistics-SKX, LLC, a
Delaware limited liability company.

“Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

“Controlled Substances Act” means the Controlled Substances Act (21 U.S.C. Sections
801 et seq.), as amended from time to time, and any successor statute.

“Debtor Relief Law(s)” means any federal, state or local law, domestic or foreign, as
now or hereafter in effect relating to bankruptcy, insolvency, liquidation, receivership,
reorganization, arrangement, composition, extension or adjustment of debts, or any similar law
affecting the rights of creditors, including Title 11 of the United States Code, as in effect from
time to time.

“Default” has the meaning set forth in Section 7.1.

“Default Rate” shall have the meaning set forth in Section 1.4.5.

“Defaulting Lender” means, subject to Section 8.13.2, any Lender that (a) has
failed to (i) fund all or any portion of its advances within two (2) Business Days of the date such
advances were required to be funded hereunder unless such Lender notifies Administrative Agent and
Borrower in writing that such failure is the result of such Lender’s determination that one or more
conditions precedent to advances (each of which conditions precedent, together with any applicable
default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to
Administrative Agent or any Lender any other amount required to be paid by it hereunder within two
(2) Business Days of the date when due, (b) has notified Borrower or Administrative Agent in
writing that it does not intend to comply with its funding obligations hereunder, or has made a
public statement to that effect (unless such writing or public statement relates to such Lender’s
obligation to fund an advance hereunder and states that such position is based on such Lender’s
determination that a condition precedent to funding (which condition precedent together with any
applicable default, shall be specifically identified in such writing or public statement) cannot be
satisfied), (c) has failed, within three (3) Business Days after written request by Administrative
Agent or Borrower to confirm in writing to Administrative Agent and Borrower that it will comply
with its prospective funding obligations hereunder (provided that such Lender shall cease
to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written
confirmation by Administrative Agent and Borrower), or (d) has, or has a direct or indirect parent
company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had
appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the
benefit of creditors or similar Person charged with reorganization or liquidation of its business
or assets, including the Federal Deposit Insurance Corporation or any other state or federal
regulatory authority acting in such a capacity; provided that a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that
Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such
ownership interest does not result in or provide such Lender with immunity from the jurisdiction of
courts within the United States or from the enforcement of judgments or writs of attachment on its
assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow, or
disaffirm any contracts or agreements made with such Lender. Any determination by Administrative
Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through
(d) above, and of the effective date of such status, shall be conclusive and binding absent
manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section
8.13.2) as of the date established therefor by Administrative Agent in a written notice of such
determination, which shall be delivered by Administrative Agent to Borrower and each Lender
promptly following such determination.

“Designated Jurisdiction” means any country or territory to the extent that such
country or territory itself is the subject of any Sanction.

“Eligible Account” means a separate and identifiable account from all other funds held
by the holding institution that is either (a) an account or accounts maintained with Bank of
America or any other federal or state chartered depository institution or trust company which
complies with the definition of Eligible Institution or (b) a segregated trust account or accounts
maintained with the corporate trust department of a federal or state chartered depository
institution or trust company acting in its fiduciary capacity which, in the case of a federally
chartered depository institution or trust company acting in its fiduciary capacity is subject to
the regulations regarding adversary funds on deposit therein under 12 C.F.R. §9.10(b), and in the
case of a state chartered depository institution or trust company, is subject to regulations
substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital surplus of at
least $50,000,000 and subject to supervision or examination by federal and state authority. An
Eligible Account shall not be evidenced by a certificate of deposit, passbook or other instrument.

“Eligible Assignee” means any Person that meets the requirements to be an assignee
under Sections 9.5(b)(iii) and (v) (subject to such consents, if any, as may be
required under Section 9.5(b)(iii)).

“Eligible Institution” means a depository institution or trust company insured by the
Federal Deposit Insurance Corporation, the short term unsecured debt obligations or commercial
paper of which are rated at least “A 1+” by S&P, “P 1” by Moody’s and “F 1+” by Fitch in the case
of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in
which funds are held for more than thirty (30) days, the long term unsecured debt obligations of
which are rated at least “A+” by Fitch and S&P and “Aa3” by Moody’s), or such other depository
institution or trust company reasonably approved by Administrative Agent from time to time.
Notwithstanding the foregoing, Bank of America shall be an Eligible Institution.

“Environmental Agreement” means the Environmental Indemnity Agreement, of even date,
by and among Borrower, Guarantor and Administrative Agent for the benefit of Lenders and certain
other parties, as amended, modified, replaced, restated, extended or renewed from time to time.

“ERISA” has the meaning set forth in Section 4.19.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to any
Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed
on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in
each case, (i) imposed as a result of such Recipient being organized under the Laws of, or having
its principal office or, in the case of any Lender, its Lending Office located in, the jurisdiction
imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes,
(b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for
the account of such Lender with respect to an applicable interest in a Loan advance or Commitment
pursuant to a Law in effect on the date on which (i) such Lender acquires such interest in the Loan
advance or Commitment (other than pursuant to an assignment request by Borrower under
Section 2.6) or (ii) such Lender changes its Lending Office, except in each case to the
extent that, pursuant to Section 2.1(a)(ii), (a)(iii) or (c), amounts with
respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender
became a party hereto or to such Lender immediately before it changed its Lending Office, (c) Taxes
attributable to such Recipient’s failure to comply with Section 2.1(e) and (d) any U.S.
federal withholding Taxes imposed pursuant to FATCA.

“Extension Fee” means a fee equal to one fifth of one percent (.20%) of the Principal
Debt as of the Initial Maturity Date

“Extension Term” has the meaning set forth in Section 1.6(b).

“FATCA” means Sections 1471 through 1474 of the Code, as in effect on the date of this
Agreement (or any amended or successor version that is substantively comparable and not materially
more onerous to comply with), any current or future regulations or official interpretations thereof
and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

“FDPA” has the meaning set forth in Section 4.7(a).

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank on
the Business Day next succeeding such day; provided that (a) if such day is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate
is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be
the average rate (rounded upwards to the next higher 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by Administrative Agent.

“Financial Statements” means (i) for each reporting party other than an individual, a
balance sheet, income statement and additional schedules as reasonably determined by Administrative
Agent: amounts and sources of contingent liabilities, real estate schedules providing details on
each individual real property in the reporting party’s portfolio, including raw land, land under
development, construction in process and stabilized properties, any additional schedules as may be
required by Administrative Agent, and unless Administrative Agent otherwise consents, consolidated
and consolidating statements if the reporting party is a holding company or a parent of a
subsidiary entity; and (ii) for each reporting party who is an individual, a balance sheet,
statements of cash flow and additional schedules as reasonably determined by Administrative Agent:
and amounts and sources of contingent liabilities, sources and uses of cash and liquidity
verification, real estate schedules providing details on each individual real property in the
reporting party’s portfolio, including raw land, land under development, any additional schedules
as may be required by Administrative Agent, and unless Administrative Agent otherwise consents,
Financial Statements for each entity owned or jointly owned by the reporting party. For purposes
of this definition and any covenant requiring the delivery of Financial Statements, each party for
whom Financial Statements are required is a “reporting party” and a specified period to which the
required Financial Statements relate is a “reporting period”.

“Foreign Lender” means (a) if Borrower is a U.S. Person, a Lender that is not a U.S.
Person, and (b) if Borrower is not a U.S. Person, a Lender that is resident or organized under the
laws of a jurisdiction other than that in which Borrower is resident for tax purposes. For
purposes of this definition, the United States, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

“Fund” means any Person (other than a natural Person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its activities.

“Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

“Guarantor” means HF Logistics–SKX T2, LLC, a Delaware limited liability company.

“Hedge Bank” means any Person in its capacity as a Swap Counterparty.

“Impacted Advances” has the meaning set forth in Section 2.3.

“Improvements” means all on-site and off-site improvements to the Land, together with
all fixtures, tenant improvements, and appurtenances now or later to be located on or in the Land
and/or in such improvements.

“Indebtedness” means any and all obligations, indebtedness and liabilities of Borrower
that constitute Obligations.

“Indemnified Liabilities” has the meaning set forth in Section 9.1.

“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by or on account of any obligation of Borrower or Guarantor under any
Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

“Initial Maturity Date” means August 12, 2020.

“Insurance Premiums” means those premiums due in connection with any insurance
policies required to be maintained by Borrower pursuant to any Loan Document.

“Land” means the real property described in Exhibit A.

“Law” or “Laws” means all constitutions, treaties, statutes, laws, ordinances,
regulations, rules, orders, writs, injunctions, or decrees of any Governmental Authority, including
with respect to Borrower and the Property, all of the foregoing regarding access and facilities for
handicapped or disabled persons including and to the extent applicable, The Federal Architectural
Barriers Act (42 U.S.C. § 4151 et seq.), The Fair Housing Amendments Act of 1988
(42 U.S.C. § 3601 et seq.), The Americans With Disabilities Act of 1990 (42 U.S.C.
§ 12101 et seq.), The Rehabilitation Act of 1973 (29 U.S.C. § 794), each as amended
to date and further amended from time to time.

“Lease” means each existing or future lease, sublease (to the extent of Borrower’s
rights thereunder) or other agreement under the terms of which any Person has or acquires any right
to occupy or use the Property, or any part thereof, or interest therein, and each existing or
future guaranty of payment or performance thereunder, and all extensions, renewals, modifications
and replacements of each such lease, sublease, agreement or guaranty.

“Lender” or “Lenders” means, singly or collectively, each lender from time to
time party to this Agreement.

“Lender Net Sale Proceeds” has the meaning set forth in Section 8.10(e).

“Lending Office” means, as to any Lender, the office or offices of such Lender
described as such on the Schedule of Lenders, or such other office or offices as such Lender may
from time to time notify Borrower and Administrative Agent.

“LIBOR” means the London Interbank Offered Rate.

“LIBOR Business Day” means a Business Day which is also a London Banking Day.

“LIBOR Daily Floating Rate” means, for any day, a fluctuating rate of interest equal
to LIBOR, or a comparable or successor rate, which rate is approved by Administrative Agent, as
published on the applicable Bloomberg screen page (or such commercially available source providing
such quotations as may be designated by Administrative Agent from time to time) at approximately
11:00 a.m., London time, two (2) LIBOR Business Days prior to such day, for U.S. Dollar deposits
with a term of one (1) month commencing that day; provided that (a) to the extent a
comparable or successor rate is approved by Administrative Agent in connection herewith, the
approved rate shall be applied in a manner consistent with market practice; provided,
further, that to the extent such market practice is not administratively feasible for
Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably
determined by Administrative Agent, and (b) if the LIBOR Daily Floating Rate shall be less than
zero, such rate shall be deemed zero for purposes of this Agreement.

“LIBOR Margin” means two percent (2%) per annum.

“LIBOR Rate” means, for any day, a fluctuating rate per annum equal to the LIBOR
Margin plus the LIBOR Daily Floating Rate.

“LIBOR Rate Principal” means any portion of the Principal Debt which bears interest at
an applicable LIBOR Rate at the time in question.

“Loan” means the loan by Lenders to Borrower, in the amount of Seventy Million and
No/100 Dollars ($70,000,000).

“Loan Documents” means this Agreement (including all exhibits), the Mortgage, any
Note, the Environmental Agreement, any Swap Contract, any guaranty, financing statements, and such
other documents evidencing, securing or pertaining to the Loan as shall, from time to time, be
executed and/or delivered by Borrower, Guarantor or any other Person to Administrative Agent or any
Lender pursuant to this Agreement, as they may be amended, modified, restated, replaced or
supplemented from time to time.

“London Banking Day” means a day on which dealings in U.S. Dollar deposits are
conducted by and between banks in the London interbank eurodollar market.

“Master Agreement” has the meaning set forth in the definition of “Swap Contract” set
forth in this Exhibit B.

“Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the Property, or the operations, business, properties, liabilities (actual or
contingent), or condition (financial or otherwise, including credit rating) of Borrower, Guarantor
or Borrower, Guarantor and their respective Subsidiaries taken as a whole; (b) a material
impairment of the ability of Borrower or Guarantor (or any other Person liable for the
Obligations) to perform its obligations under any Loan Document to which it is a party; or (c) a
material adverse effect upon the legality, validity, binding effect or enforceability against
Borrower or Guarantor (or any other Person liable for the Obligations) of any Loan Document to
which it is a party.

“Material Condemnation” means a Condemnation (a) of any portion of the Property unless
the portion so taken constitutes less than ten percent (10%) of the Land, such land is located
along the perimeter or periphery of the Land (or is not otherwise being utilized) and no material
portion of the Improvements is located on such land, or (b) of such portion of the Property which
when so taken would, in Administrative Agent’s reasonable determination, leave remaining a balance
of the Property which, due to the amount and/or nature of the area so taken and/or the location of
the area taken in relation to the area not so taken would not, under economic conditions,
applicable zoning laws, building regulations and the requirements of this Agreement, the Leases and
the Permitted Encumbrances permit the Restoration of the Property.

“Maturity Date” means the Initial Maturity Date, as it may be earlier accelerated or
extended in accordance with the terms hereof.

“Mortgage” means collectively, that certain Construction Deed of Trust, Assignment of
Rents and Leases, Security Agreement and Fixture Filing dated as of April 30, 2010 executed by
Borrower as trustor in favor of PRLAP, Inc. as trustee for the benefit of the Bank of America,
N.A., as Administrative Agent, for the benefit of itself as a lender and for the other lenders from
time to time a party to the Prior Loan Agreement, and Raymond James Bank, FSB as a lender and
recorded on May 4, 2010 as Document No. 2010-0204347 in the Official Records of Riverside County,
California as modified by Modification of Deed of Trust and Other Loan Documents dated September
22, 2010 executed by and among Borrower, Bank of America, N.A., as Administrative Agent and a
lender and Raymond James Bank, FSB, as a lender and recorded on September 22, 2010 as Document No.
2010-0453055 in the Official Records of Riverside County, California, as further modified by Second
Modification to Deed of Trust dated November 16, 2012 executed by and among Borrower, Bank of
America, N.A., as Administrative Agent and a lender, Raymond James Bank, N.A. (formerly known as
Raymond James Bank, FSB) as a lender and OneWest Bank, FSB as a lender, recorded on November 19,
2012 as Document No. 2012-0557451 in the Official Records of Riverside County, California, as
further amended by Third Modification to Deed of Trust of even date executed by and among Borrower,
Bank of America, N.A. as Administrative Agent and a lender, Raymond James Bank, N.A. as a lender
and CIT Bank, N.A., (formerly known as OneWest Bank, FSB) as a lender recorded or to be recorded in
the Official Records of Riverside County, California, as the same may be from time to time renewed,
extended, amended, supplemented, restated, or replaced from time to time.

“Net Proceeds” means the amount of all insurance proceeds paid pursuant to any
Insurance Policy as the result of a Casualty, after deduction of the costs and expenses (including
fees of any insurance consultant or adjuster and reasonable attorneys’ fees and disbursements), if
any, incurred in collecting the same.

“Net Restoration Award” means the amount of all awards and payments received on
account of a Taking, after deduction of the costs and expenses (including reasonable attorneys’
fees and disbursements), if any, incurred in collecting the same.

“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or
amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with
the terms of Section 9.9 and (b) has been approved by the Required Lenders.

“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting
Lender at such time.

“Notes” means, collectively, the promissory note(s), dated as of the Closing Date,
executed by Borrower and payable to the order of each Lender in the amount of each Lender’s
Commitment and collectively in the maximum principal amount of the Loan substantially in the form
of Exhibit G, together with all replacements and substitutes thereof, in each case, as
amended, modified, replaced, restated, extended or renewed from time to time.

“Obligations” means all liabilities, obligations, covenants and duties (including
paying all Additional Interest) of, Borrower arising under or otherwise with respect to any Loan
Document or any Swap Contract, whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising and including
interest and fees that accrue after the commencement by or against Borrower or any other party to a
Loan Document or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such
Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed
claims in such proceedings.

“OFAC” means the Office of Foreign Assets Control of the United States Department of
the Treasury.

“OREO Property Manager” has the meaning specified in Section 8.10(b).

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and the jurisdiction imposing such
Tax (other than connections arising from such Recipient having executed, delivered, become a party
to, performed its obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold
or assigned an interest in any Loan or Loan Document).

“Other Taxes” means all present or future stamp, court or documentary, intangible,
recording, filing or similar Taxes that arise from any payment made under, from the execution,
delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are
Other Connection Taxes imposed with respect to an assignment (other than an assignment made
pursuant to Section 2.6).

“Participant” has the meaning specified in Section 9.5(d).

“Patriot Act” has the meaning specified in Section 9.23.

“Payment Amount” means an advance of the Loan, an unreimbursed Administrative Agent
Advance, an unreimbursed Indemnified Liability, or any other amount that a Lender is required to
fund under this Agreement.

“Payments” has the meaning set forth in Section 8.11.

“Permitted Debt” means (a) sums owed by Borrower from time to time under any Swap
Contract (b) unsecured trade payables incurred by Borrower in the ordinary course of operating the
Property which (i) do not exceed, at any time, $1,000,000, and (ii) are paid within thirty (30)
days of the date incurred (unless contested by Borrower in good faith); and (c) indebtedness that
is owed to the vendor of the solar panels which have already been installed at the Property
provided that such indebtedness does not exceed the current outstanding balance of such
indebtedness existing as of the date hereof.

“Permitted Encumbrances” means (a) the encumbrances set forth in Exhibit L;
(b) the liens and security interests evidenced by the Mortgage; and (c) other liens and security
interests in favor of Administrative Agent and/or the Lenders.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

“Platform” has the meaning set forth in Section 9.3.4(b).

“Potential Default” means any condition or event which with the giving of notice or
lapse of time or both would, unless cured or waived, become a Default.

“Prior Loan Agreement” has the meaning set forth in Section 1.1.

“Prime Rate” means a rate set by Bank of America based upon various factors including
Bank of America’s costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at, above, or below such
announced rate. Any change in such Prime Rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such change.

“Principal Debt” means the aggregate unpaid principal balance of this Loan at the time
in question.

“Pro Rata Share” means, with respect to each Lender at any time, a fraction expressed
as a percentage, the numerator of which is the amount of the Commitment of such Lender at such time
and the denominator of which is the amount of the Aggregate Commitments at such time or, if the
Aggregate Commitments have been terminated, a fraction (expressed as a percentage, carried out to
the ninth decimal place), the numerator of which is the total outstanding amount of all
Indebtedness held by such Lender at such time and the denominator of which is the total outstanding
amount of all Indebtedness at such time. The initial Pro Rata Share of each Lender named on the
signature pages hereto is set forth opposite the name of that Lender on the Schedule of Lenders.

“Prohibited Person” means any Person:

(a) listed in the annex to, or who is otherwise subject to the provisions of, Executive Order
No. 13224 on Terrorist Financing, effective September 24, 2001, and relating to Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (the
“Executive Order”);

(b) that is owned or controlled by, or acting for or on behalf of, any person or entity that
is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order;

(c) with whom a Person is prohibited from dealing or otherwise engaging in any transaction by
any terrorism or money laundering law, including the Executive Order;

(d) who commits, threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order;

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

(f) who is an Affiliate of a Person listed in clauses (a) through (e) above.

“Property” means the Land, the Improvements and all other property constituting the
“Property,” as described and defined in the Mortgage, or subject to a right, lien or security
interest to secure the Loan pursuant to any other Loan Document.

“Property Schedules” means any one or combination of the following, as reasonably
determined by Administrative Agent: property operating statements, rent rolls, leasing status
reports (including tenants’ names, occupied tenant space, lease terms, rents, vacant space and
proposed rents), sales reports, inventory reports, capital and operating budgets.

“Public Lender” has the meaning set forth in Section 9.3.4(b).

“Purchase Offer” has the meaning set forth in Section 8.10(e).

“Qualified ECP Borrower” means, at any time, each Borrower with total assets exceeding
$10,000,000 or that qualifies at such time as an “eligible contract participant” under the
Commodity Exchange Act and can cause another Person to qualify as an “eligible contract
participant” at such time under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Real Property Taxes” mean taxes, assessments and other charges or levies imposed upon
or against or with respect to the Property or the ownership, use, occupancy or enjoyment of any
portion thereof, or any utility service thereto, as the same become due and payable, including all
taxes assessed against the Property or any part thereof.

“Recipient” means Administrative Agent, any Lender or any other recipient of any
payment to be made by or on account of any obligation of Borrower or Guarantor under the Loan
Documents.

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and
representatives of such Person and such Person’s Affiliates.

“Release Condition” and “Release Conditions” have the meanings set forth in
Section 4.8(d).

“Rents” has the meaning set forth in the Mortgage.

“Replacement Note” has the meaning specified in Section 9.5(b).

“Required Lenders” means as of any date of determination at least two (2) Lenders
having at least 66-2/3% of the Aggregate Commitments or, if the Aggregate Commitments have been
terminated, at least two Lenders holding in the aggregate at least 66-2/3% of the total outstanding
amount of all Indebtedness; provided that the Commitment of, and the portion of the total
outstanding amount of all Indebtedness held by, any Defaulting Lender shall be excluded for
purposes of making a determination of the Required Lenders. At any time that there is only one (1)
Lender, then “Required Lenders” shall mean such Lender. At any time that there are only two (2)
Lenders, then, subject to the following sentence, “Required Lenders” shall mean each such Lender.
At any time that all but one (1) of the Lender are Defaulting Lenders, then “Required Lenders”
shall mean the non-Defaulting Lender.

“Restoration” means in case of a Casualty or a Condemnation, the restoration,
replacement or rebuilding of the portion of the Property affected by the Casualty or Condemnation
substantially in accordance with plans and specifications approved by Administrative Agent such
that when such restoration, replacement or rebuilding is completed, the Property shall have been
restored, in the case of any Casualty, substantially to the same character and condition as prior
to such Casualty, and in the case of any Condemnation, to an integral unit as substantially similar
as possible, taking into account the extent of the Condemnation, to the character and condition of
the Property prior to such Condemnation and otherwise in accordance with this Agreement, all Laws,
the Leases and the Permitted Encumbrances. In any case, Restoration shall (i) provide
substantially the same (but in no case less than what is required by Law, the Leases and the
Permitted Encumbrances) amount and type of, and rights with respect to, utilities and parking
spaces applicable to the Property as existed prior to such Casualty or Condemnation, and (ii)
provide sufficient (in Administrative Agent’s reasonable determination) access across and over the
Property to the public roads and highways.

“Sanction(s)” means any international economic sanction administered or enforced by
the United States Government, including OFAC, the United Nations Security Council, the European
Union, Her Majesty’s Treasury or other relevant sanctions authority.

“Schedule of Lenders” means the schedule of Lenders party to this Agreement as set
forth on Exhibit H, as it may be modified from time to time in accordance with this
Agreement.

“Secured Party Designation Notice” means a notice from any Lender or an Affiliate of a
Lender substantially in the form of Exhibit S.

“Skechers” means Skechers U.S.A., Inc., a Delaware corporation.

“Skechers Entity” means any Person that is (a) directly or indirectly Controlled by
Skechers; and (b) directly or indirectly owned by Skechers provided that Skechers’ direct or
indirect ownership interest is equal to or exceeds fifty one percent (51%) of the total ownership
interest of such Person.

“Skechers Lease” means that certain Lease Agreement made September 25, 2007 by and
between Skechers and HF Logistics I, LLC, a Delaware limited liability company (the “Original
Landlord”) as amended by that certain Amendment to Lease Agreement made and entered into
December 18, 2009 by and between Skechers and Original Landlord, as assigned to Borrower by
Original Landlord pursuant to that certain Assignment of Lease (Skechers Lease) made and entered
into April 12, 2010, as further modified by that certain Second Amendment to Lease Agreement made
and entered into April 12, 2010 by and between Skechers and Borrower as further modified by Third
Amendment to Lease Agreement made and entered into August 18, 2010 by and between Skechers and
Borrower, as it may be amended hereafter (in strict conformity with the terms and conditions of
this Agreement).

“Survey” means a survey prepared in accordance with Exhibit D or as otherwise
approved by Administrative Agent in its sole discretion.

“Swap Contract” means any agreement, whether or not in writing, relating to any Swap
Transaction, including, unless the context otherwise clearly requires, any agreement or contract
that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act and
CFTC Regulation 1.3(xxx), any form of master agreement (the “Master Agreement”) published
by the International Swaps and Derivatives Association, Inc., and any other master agreement,
entered into on or prior to the Closing Date or any time after the Closing Date, between Swap
Counterparty, together with any related schedule and confirmation, as amended, supplemented,
superseded or replaced from time to time.

“Swap Counterparty” means any Person in its capacity as a party to a Swap Contract
that, at the time it enters into a Swap Contract not prohibited under this Agreement, is a Lender
or an Affiliate of a Lender, in its capacity as a party to such Swap Contract (even if such Person
ceases to be a Lender or such Person’s Affiliate ceased to be a Lender); provided, in the
case of a Swap Contract with a Person who is no longer a Lender (or Affiliate of a Lender), such
Person shall be considered a Swap Counterparty only through the stated termination date (without
extension or renewal) of such Swap Contract and provided, further, that for any of
the foregoing to be included as a “Swap Contract” on any date of determination by Administrative
Agent, the applicable Hedge Bank (other than Administrative Agent or an Affiliate of Administrative
Agent) must have delivered a Secured Party Designation Notice to Administrative Agent prior to such
date of determination.

“Swap Obligation” means any obligation to pay or perform under any Swap Contract, or
any other agreement, contract or transaction entered into in connection with a Swap Transaction.

“Swap Transaction” means any transaction that is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity index swap or option,
bond option, note or bill option, interest rate option, forward foreign exchange transaction, cap
transaction, spot or floor transaction, collar transaction, floor transaction, currency swap
transaction, cross-currency rate swap transaction, swap option, currency option, credit swap or
default transaction, T-lock, or any other similar transaction (including any option to enter into
the foregoing) or any combination of the foregoing, entered into prior to the Closing Date or
anytime after the Closing Date between Swap Counterparty and Borrower (or its Affiliate) so long as
a writing, such as a Swap Contract, evidences the parties’ intent that such obligations shall be
secured by the Mortgage

“Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

“Title Company” means First American Title Insurance Company.

“Title Insurance” means the loan policy or policies of title insurance issued to
Administrative Agent for the benefit of Lenders by the Title Company, in an amount equal to the
maximum principal amount of the Loan, insuring the validity and priority of the Mortgage
encumbering the Land and Improvements for the benefit of Administrative Agent and Lenders.

“Title Insurance Report” means an update of the Title Insurance in a form and
substance satisfactory to Administrative Agent.

“Transfer” has the meaning set forth in Section 5.5(a).

“Trump Entity” means any Person that is (a) directly or indirectly Controlled by one
or both of Jules Trump and Eddie Trump, or in the event that each of foregoing individuals is
either deceased or declared incompetent, directly Controlled by one or more of any of the following
three individuals: James Lieb, Johnathan Robertson or Mark Hirsch; and (b) directly or indirectly
owned by one or both of Jules Trump and Eddie Trump or their heirs provided that such direct or
indirect ownership interest is equal to or exceeds fifty one percent (51%) of the total ownership
interests of such Person.

“U.S. Person” means any Person that is a “United States person” as defined in
Section 7701(a)(30) of the Code.

“U.S. Tax Compliance Certificate” has the meaning specified in
Section 2.1(e)(ii)(B)(III).

2. FINANCIAL STATEMENTS:

Borrower shall provide or cause to be provided to Administrative Agent:

1. All of the following:

(a) Financial Statements of Borrower for each fiscal year, as soon as reasonably practicable
and in any event within ninety (90) days after the close of each fiscal year. Financial
Statements of Borrower shall be certified by the manager (or managing member as applicable) of the
Borrower.

(b) Property Schedules within the same scheduled time frames as permitted for fiscal year
Financial Statement reporting.

(c) Financial Statements of Guarantor for each fiscal year, as soon as reasonably practicable
and in any event within ninety (90) days after the close of each fiscal year. Financial Statements
of Guarantor shall be certified by the manager (or managing member as applicable) of the Guarantor.

(d) Concurrently with the delivery of the financial statements referred to in clause
(a) above, evidence of compliance with the financial covenants set forth in Exhibit J of this
Agreement in form and content reasonably satisfactory to Administrative Agent.

(e) Copies of filed federal and state income tax returns and any extensions thereof, of
Borrower and Guarantor for each taxable year (with all K-1s and other forms and supporting
schedules attached if an individual), within thirty (30) days after filing the same, but in any
event not later than one hundred twenty (120) days after the close of each taxable year.
Notwithstanding the foregoing, in the event Borrower timely files for an extension for the filing
of a federal or state tax return and provides Administrative Agent with a copy of the extension
filing within thirty (30) days of filing same, a copy of the return shall be provided to
Administrative Agent within thirty (30) days after the filing of such return but in any event not
later than the expiration of the applicable extension period.

2. Additional Financial Reporting: Additional Financial Reporting, as reasonably
required by Administrative Agent or as required by any Governmental Authority, shall be provided at
certain times, including but not limited to: during initial lease-up and stabilization, at times of
current or potential tenant roll-over or as a result of local, regional or macro-economic market
disturbance, or other situations whether within or outside of Borrower’s or Administrative Agent’s
control. If Additional Financial Reporting is required hereunder, Borrower shall submit such
reporting to Administrative Agent within thirty (30) days of each period end for which the
statement is requested.

6

EXHIBIT C

CONDITIONS PRECEDENT TO THE ADVANCE OF THE LOAN

As conditions precedent to the advance of the Loan, if and to the extent required by
Administrative Agent, Administrative Agent shall have received and approved the following:

1) Fees and Expenses. Any and all required commitment and other fees, and evidence
satisfactory to Administrative Agent that Borrower has paid all other fees, costs and expenses
(including the fees and costs of Administrative Agent’s counsel) then required to be paid pursuant
to this Agreement and all other Loan Documents or otherwise, including all fees, costs and expenses
that Borrower is required to pay pursuant to any loan application or commitment.

3. Financial Statements. The Financial Statements of Borrower and Guarantor or any
other Person required by any loan application or commitment or otherwise required by Administrative
Agent.

4. Appraisal. A market value appraisal of the Property made within one hundred eighty
(180) days prior to the Closing Date, which appraises the Property on an “as-is value” basis at an
amount satisfactory to Administrative Agent. The appraiser, appraisal and Appraised Value of the
Property must be satisfactory to Administrative Agent (including satisfaction of applicable
regulatory requirements) and the appraiser must be engaged directly by Administrative Agent.

5. Authorization. Evidence Administrative Agent requires of the existence, good
standing, authority and capacity of Borrower, Guarantor, and their respective constituent partners,
members, managers and owners (however remote) to execute, deliver and perform their respective
obligations to Administrative Agent and Lenders under the Loan Documents, including:

(a) For each partnership (including a joint venture or limited partnership): (i) a true and
complete copy of an executed partnership agreement or limited partnership agreement and all
amendments thereto; (ii) for each limited partnership, a copy of the certificate of limited
partnership and all amendments thereto accompanied by a certificate issued by the appropriate
governmental official of the jurisdiction of formation that the copy is true and complete, and
evidence Administrative Agent requires of registration or qualification to do business in the state
where Borrower’s principal place of business is located and the state where the Property is
located; and (iii) a partnership affidavit certifying who are authorized to execute or attest any
of the Loan Documents, and a true and complete copy of the partnership resolutions approving the
Loan Documents and authorizing the transactions contemplated in this Agreement and the other Loan
Documents.

(b) For each corporation: (i) a true and complete copy of its by-laws and all amendments
thereto; (ii) a copy of its articles of incorporation and all amendments thereto accompanied by a
certificate issued by the appropriate governmental official of the jurisdiction of incorporation
that the copy is true and complete; (iii) a certificate of incumbency of all of its officers who
are authorized to execute or attest to any of the Loan Documents, and a true and complete copy of
resolutions approving the Loan Documents and authorizing the transactions contemplated in this
Agreement and the other Loan Documents and (iv) certificates of existence, good standing and
qualification to do business issued by the appropriate governmental officials in the state of its
incorporation and, if different, the state in which the Property is located.

(c) For each limited liability company or limited liability partnership: (i) a true and
complete copy of its operating agreement and all amendments thereto; (ii) a copy of its articles of
organization and all amendments thereto accompanied by a certificate issued by the appropriate
governmental official of the jurisdiction of formation that the copy is true and complete; (iii) a
certificate of incumbency of all of its members and officers who are authorized to execute or
attest to any of the Loan Documents, and a true and complete copy of resolutions approving the Loan
Documents and authorizing the transactions contemplated in this Agreement and the other Loan
Documents and (iv) certificates of existence, good standing and qualification to do business issued
by the appropriate governmental officials in the state of its formation and, if different, the
state in which the Property is located.

(d) For each entity or organization that is not a corporation, partnership, limited
partnership, limited liability company or limited liability partnership, a copy of each document
creating it or governing the existence, operation, power or authority of it or its representatives.

(e) All certificates, resolutions, and consents required by Administrative Agent applicable to
the foregoing.

6. Loan Documents. From Borrower, Guarantor and each other Person a party thereto,
duly executed, acknowledged and/or sworn to as required, and delivered to Administrative Agent
(with a copy for each Lender) all Loan Documents then required by Administrative Agent, dated as of
the Closing Date, each in form and content satisfactory to Administrative Agent.

7. Swap Contract. If required pursuant to Paragraph 1 of Exhibit I, a Swap
Contract and all other items set forth in said Paragraph 1.

8. Opinions. Written opinions of counsel satisfactory to Administrative Agent for
Borrower, Guarantor, and any other Persons required by Administrative Agent addressed to
Administrative Agent for the benefit of Lenders, dated the Closing Date.

9. Survey; Flood Hazard Area. (a) Two (2) prints of an original survey (with a copy
for each Lender) of the Land and improvements thereon dated not more than sixty (60) days prior to
the Closing Date (or dated such earlier date, if any, as is satisfactory to the Title Company, but
in any event not more than one hundred eighty (180) days prior to the Closing Date) satisfactory to
Administrative Agent and the Title Company and otherwise, to the extent required by Administrative
Agent, complying with Exhibit D; and (b) evidence satisfactory to Administrative Agent that
none of the Land is located in a flood hazard area or a flood insurance policy (with a copy for
each Lender) insuring any structure or portion thereof and any Borrower owned contents against
casualty by flood in form and amount acceptable to Administrative Agent but in no amount less than
the amount sufficient to meet the requirements of applicable Law as such requirements may from time
to time be in effect. The flood insurance policy on contents shall be required upon completion of
the structure or any unit or component thereof, or as soon thereafter as a flood insurance policy
on such contents may be obtained.

10. Title Insurance. An ALTA extended coverage lender’s title insurance policy,
issued by the Title Company (which shall be approved by Administrative Agent) in the maximum amount
of the Loan plus any other amount secured by the Mortgage, on a coinsurance and/or reinsurance
basis if and as required by Administrative Agent: (a) insuring that the Mortgage constitutes a
valid lien covering the Land and all Improvements thereon, having the priority required by
Administrative Agent and subject only to those exceptions and encumbrances (regardless of rank or
priority) Administrative Agent approves, in a form acceptable to Administrative Agent, and with all
“standard” exceptions which can be deleted, including the exception for matters which a current
survey would show, deleted to the fullest extent authorized under applicable title insurance rules,
and Borrower shall satisfy all requirements therefor permitted; (b) containing no exception for
standby fees or real estate taxes or assessments other than those for the year in which the closing
occurs to the extent the same are not then due and payable and endorsed “not yet due and payable”
and no exception for subsequent assessments for prior years; (c) providing full coverage against
mechanics’, materialmen’s and other similar liens to the extent authorized under applicable title
insurance rules, and Borrower shall satisfy all requirements therefor; (d) insuring that no
restrictive covenants shown in the Title Insurance have been violated, and that no violation of the
restrictions will result in a reversion or forfeiture of title; (e) insuring all appurtenant
easements; insuring that indefeasible or marketable (as coverage is available) fee simple title to
the Land and fee simple title to the Improvements is vested in Borrower; (f) containing such
affirmative coverage and endorsements (including the standard California endorsements) as
Administrative Agent may require and are available under applicable title insurance rules, and
Borrower shall satisfy all requirements therefor; (g) insuring any easements, leasehold estates or
other matters appurtenant to or benefiting the Land and/or the Improvements as part of the insured
estate; (h) insuring the right of access to the Land to the extent authorized under applicable
title insurance rules, and Borrower shall satisfy all requirements therefor; and (i) containing
provisions acceptable to Administrative Agent regarding advances and/or readvances of Loan funds
after closing. Borrower and Borrower’s counsel shall not have any interest, direct or indirect, in
the Title Company (or its agent) or any portion of the premium paid for the Title Insurance.

11. Insurance Policies. The insurance policies initially required by Administrative
Agent, pursuant to the Loan Documents, together with evidence satisfactory to Administrative Agent
that all premiums therefor have been paid for the current term of the policies (which shall run for
not less than one (1) year) and that the policies are in full force and effect.

12. Leases. (a) True and correct copies of all leases and subleases, and guaranties
thereof; (b) estoppel certificates and subordination and attornment agreements (including
nondisturbance agreements if and to the extent agreed by Administrative Agent in its discretion),
dated within thirty (30) days prior to this Agreement in form and content satisfactory to
Administrative Agent, from the tenants and subtenants as Administrative Agent requires;
(c) evidence satisfactory to Administrative Agent of Borrower’s compliance with the leases; and
(d) evidence satisfactory to Administrative Agent of the tenants’ approval of all matters requiring
their approval.

13. Environmental Compliance/Report. Evidence satisfactory to Administrative Agent
that no portion of the Land is “wetlands” under any applicable Law and that the Land does not
contain and is not within or near any area designated as a hazardous waste site by any Governmental
Authority, that neither the Property nor any adjoining property contains or has ever contained any
substance classified as hazardous or toxic (or otherwise regulated, such as, without limitation,
asbestos, radon and/or petroleum products) under any Law or governmental requirement pertaining to
health or the environment, and that neither the Property nor any use or activity thereon violates
or is or could be subject to any response, remediation, clean-up or other obligation under any Law
or governmental requirement pertaining to health or the environment including a written report of
an environmental assessment of the Property, made within twelve (12) months prior to the Closing
Date, by an engineering firm, and of a scope and in form and content satisfactory to Administrative
Agent, complying with Administrative Agent’s established guidelines, showing that there is no
evidence of any such substance which has been generated, treated, stored, released or disposed of
in the Property, and such additional evidence as may be required by Administrative Agent. All
reports, drafts of reports, and recommendations, whether written or oral, from such engineering
firm shall be made available and communicated to Administrative Agent.

14. Access, Utilities, and Laws. (a) Evidence satisfactory to Administrative Agent
that the Property abuts and has fully adequate direct and free access to one or more public
streets, dedicated to public use, fully installed and accepted by the appropriate Governmental
Authority, that all fees, costs and expenses of the installation and acceptance thereof have been
paid in full, and that there are no restrictions on the use and enjoyment of such streets which
would adversely affect the Property; (b) letters from the applicable utility companies or
Governmental Authorities confirming that all utilities necessary for the Improvements are available
at the Land in sufficient capacity, together with evidence satisfactory to Administrative Agent of
paid impact fees, utility reservation deposits, and connection fees required to assure the
availability of such services; (c) evidence satisfactory to Administrative Agent that all
applicable zoning ordinances, restrictive covenants, Laws and governmental requirements affecting
the Property permit the use for which the Property is intended and have been or will be complied
with without the existence of any variance, non-complying use, nonconforming use or other special
exception; (d) evidence satisfactory to Administrative Agent that the Land and Improvements comply
and will comply with all Laws and governmental requirements regarding subdivision and platting and
would so comply if the Land and the Improvements thereon were conveyed as a separate parcel; and
(e)  evidence satisfactory to Administrative Agent of compliance by Borrower and the Property, and
the construction, use and occupancy of the Improvements, with such other applicable Laws and
governmental requirements as Administrative Agent may request.

15. Tax and Standby Fee Certificates. Taxes and Impact Fees. Evidence
satisfactory to Administrative Agent (a) of the identity of all taxing authorities and utility
districts (or similar authorities) having jurisdiction over the Property or any portion thereof;
(b) that all taxes, impact fees, standby fees, water and sewer connection charges and any other
similar charges have been paid, including copies of receipts or statements marked “paid” by the
appropriate authority; and (c) that the Land is a separate tax lot or lots with separate assessment
or assessments thereof, independent of any other land or improvements and that the Land is a
separate legally subdivided parcel.

16. Agreements. True and correct copies of all material agreements to which Borrower
is a party or by which the Property is bound, including the Permitted Encumbrances.

17. Other Documents. Such other instruments, documents, certificates and other
information as Administrative Agent may reasonably request from Borrower, Guarantor, and any other
Person, in form and content satisfactory to Administrative Agent.

18. Borrower Identification Due Diligence. All due diligence materials deemed
necessary by Administrative Agent and each Lender with respect to verifying Borrower’s identity and
background information in a manner satisfactory to Administrative Agent and each Lender.

7

EXHIBIT D

SURVEY REQUIREMENTS

1. Requirements. The survey shall be made in accordance with, and meet the
requirements of, the certification below by a registered professional engineer or registered
professional land surveyor. The description shall be a single metes and bounds perimeter
description of the entire land, and a separate metes and bounds description of the perimeter of
each constituent tract or parcel out of the land. The total acreage and square footage of the land
and each constituent tract or parcel of the land shall be certified. If the land has been recorded
on a map or plat as part of an abstract or subdivision, all survey lines must be shown, and all lot
and block lines (with distances and bearings) and numbers, must be shown. The date of any
revisions subsequent to the initial survey prepared pursuant to these requirements must also be
shown.

2. Certification. The certification for the property description and the map or plat
shall be addressed to Administrative Agent for the Lenders, Borrower and the Title Company, signed
by the surveyor (a registered professional land surveyor or registered professional engineer),
bearing current date, registration number, and seal, and shall be in the following form or its
substantial equivalent:

To Bank of America, N.A., as Administrative Agent for certain Lenders,       , as
Borrower, and       , as Title Company:

This is to certify that this map or plat and the survey on which it is based were made in
accordance with the 2011 Minimum Standard Detail Requirements for ALTA/ACSM Land Title
Surveys, jointly established and adopted by ALTA and NSPS, and includes Items 1, 2, 3, 4 (in
square feet or acres), 6(b), 8, 11(b), [13], 14, 16, 17, 18, 19, 20(a), and if buildings are
located on the land, optional items 7(a), 7(b)(1), 7(c), and 9, [ and 10(a)] of Table A
thereof. The field work was completed on       .

Date of Plat or Map:      

(Surveyor’s signature, printed name and seal with Registration/License Number)

8

EXHIBIT E

LEASING AND TENANT MATTERS

Borrower and Lenders agree as follows:

1. Approved Leases. Borrower shall not enter into any Lease in the Improvements
unless approved by Administrative Agent prior to execution. Borrower shall provide to
Administrative Agent a correct and complete copy of each Lease, including any exhibits, and each
guaranty thereof (if any), prior to execution. Borrower shall, throughout the term of this
Agreement, pay all reasonable costs incurred by Administrative Agent in connection with
Administrative Agent’s review and approval of Leases and each guaranty thereof (if any), and also
in connection with Administrative Agent’s negotiation of subordination agreements and
subordination, nondisturbance and attornment agreements with tenants, including reasonable
attorneys’ fees and costs.

2. Effect of Lease Approval. No approval of any Lease by Administrative Agent shall
be for any purpose other than to protect Lenders’ security and to preserve Lenders’ rights under
the Loan Documents. No approval by Administrative Agent shall result in a waiver of any Default.
In no event shall any approval by Administrative Agent of a Lease be a representation of any kind,
with regard to the Lease or its adequacy or enforceability, or the financial capacity of any tenant
or guarantor.

3. Covenants Regarding Leases. (a) Borrower agrees that (i) Borrower will observe and
perform in all material respects all of the obligations imposed upon the landlord in the Leases and
will not do or permit to be done anything to impair the security thereof; (ii) Borrower will use
its commercially reasonable efforts to enforce or secure, or cause to be enforced or secured, the
performance of each and every material obligation and undertaking of the respective tenants under
the Leases and will appear in and defend, at Borrower’s sole cost and expense, any action or
proceeding arising under, or in any manner connected with, the Leases; (iii) no Rents will be
waived, released, discounted, set off or compromised; (iv) except as stated in the Leases, Borrower
has not received any funds or deposits from any tenant which for credit has not already been made
on account of accrued Rents; (v) Borrower will not without the prior written consent of
Administrative Agent waive, release, discount, set off, compromise, reduce or defer any Rent,
receive or collect Rents more than one (1) month in advance, grant any rent-free period to any
tenant, reduce any Lease term or waive, release or otherwise modify any other material obligation
under any Lease, renew or extend any Lease except in accordance with a right of the tenant thereto
in such Lease, approve or consent to an assignment of a Lease or a subletting of any part of the
premises covered by a Lease, or settle or compromise any claim against a tenant under a Lease in
bankruptcy or otherwise; (vi) Borrower will not, without the prior written consent of
Administrative Agent, terminate or consent to the cancellation or surrender of any Lease having an
unexpired term of one (1) year or more unless promptly after the cancellation or surrender a new
Lease of such premises is made with a new tenant having a credit standing, in Administrative
Agent’s judgment, at least equivalent to that of the tenant whose Lease was cancelled, on
substantially the same terms as the terminated or cancelled Lease; (vii) Borrower will not execute
any Lease except in accordance with the Loan Documents and for actual occupancy by the tenant
thereunder; and (viii) Borrower shall give prompt notice to Administrative Agent, as soon as
Borrower first obtains notice, of any claim, or the commencement of any action, by any tenant or
subtenant under or with respect to a Lease regarding any claimed damage, default, diminution of or
offset against Rent, cancellation of the Lease, or constructive eviction, excluding, however,
notices of default under residential Leases, and Borrower shall defend, at Borrower’s expense, any
proceeding pertaining to any Lease, including, if Administrative Agent so requests, any such
proceeding to which Administrative Agent is a party. Borrower further covenants that Borrower will
not, and will not permit or knowingly suffer a tenant under any Lease of space in the Improvements
to, violate any Laws affecting the Property, including the Controlled Substances Act, or which
could otherwise result in the occurrence of a Default under Section 7.1(n), including the
commencement of any proceedings under the Civil Asset Forfeiture Reform Act.

(b) Borrower agrees that (i) there shall be no merger of the leasehold estates, created by the
Leases, with the fee estate of the Land without the prior written consent and express written
agreement of Administrative Agent; and (ii) Administrative Agent may at any time and from time to
time by specific written instrument intended for the purpose, unilaterally subordinate the lien of
the Mortgage to any Lease, without joinder or consent of, or notice to, Borrower, any tenant or any
other Person. No such subordination shall constitute a subordination to any lien or other
encumbrance, whenever arising, or improve the right of any junior lien mortgagee; and nothing
herein shall be construed as subordinating the Mortgage to any Lease.

4. Estoppel Certificates. All Leases shall require the tenant to execute and deliver
to Administrative Agent an estoppel certificate in form and substance acceptable to Administrative
Agent within fifteen (15) days after notice from the Administrative Agent (or with respect solely
to the Skechers Lease, such other time period for the delivery of estoppel certificates as may be
set forth therein).

5. Delivery of Leasing Information and Documents. From time to time upon
Administrative Agent’s request, Borrower shall deliver to Administrative Agent within fifteen (15)
days of such request, (a) complete executed copies of each Lease, including any exhibits thereto
and each guaranty thereof (if any), (b) a complete rent roll of the Property in such detail as
Administrative Agent may require, together with such operating statements and leasing schedules and
reports as Administrative Agent may require, (c) any and all financial statements of the tenants,
subtenants and lease guarantors (if any) to the extent available to Borrower, (d) such other
information regarding tenants and prospective tenants and other leasing information as
Administrative Agent may reasonably request, and (e) such estoppel certificates and subordination
agreements and/or subordination, nondisturbance and attornment agreements executed by such tenants,
subtenants and guarantors, if any in such forms as Administrative Agent may reasonably require (it
being acknowledged and agreed that Administrative Agent and the Lenders have already received and
approved the documentation described in subsections (a), (c), and (e) above with respect to the
Skechers Lease).

6. Compliance and Default. Borrower shall promptly notify Administrative Agent in
writing of any failure by any Person to perform any material obligation under any Lease, any event
or condition which would permit a tenant to terminate or cancel a Lease, or any notice given by a
tenant with respect to the foregoing, specifying in each case the action Borrower has taken or will
take with respect thereto.

7. Skechers Lease. Administrative Agent and Borrower hereby acknowledge that the
Skechers Lease is acceptable to Administrative Agent and Lenders and Borrower shall comply with the
requirements of this Exhibit “E” with respect to the Skechers Lease. Notwithstanding anything to
the contrary contained herein, Borrower shall not modify any terms or provisions of the Skechers
Lease without the prior written consent of Required Lenders which consent shall be in the sole and
absolute discretion of the Required Lenders.

9

EXHIBIT F

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this “Assignment”) is dated as of the Effective Date
set forth below and is entered into by and between        (the “Assignor”) and
     (the “Assignee”). Capitalized terms used but not defined herein shall
have the meanings given to them in the Loan Agreement identified below (the “Loan
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard
Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Loan Agreement, as of the
Effective Date inserted by Administrative Agent as contemplated below, (i) all of the Assignor’s
rights and obligations as a Lender under the Loan Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage interest identified
below of all of such outstanding rights and obligations of the Assignor under the respective
facilities identified below (including Guaranties), and (ii) to the extent permitted to be assigned
under applicable Law, all claims, suits, causes of action and any other right of the Assignor (in
its capacity as a Lender) against any Person, whether known or unknown, arising under or in
connection with the Loan Agreement, any other documents or instruments delivered pursuant thereto
or in any way based on or related to any of the foregoing, including, but not limited to contract
claims, tort claims, malpractice claims, statutory claims and all other claims at Law or in equity,
related to the rights and obligations sold and assigned pursuant to clause (i) above (the
rights and obligations sold and assigned pursuant to clauses (i) and (ii) above
being referred to herein collectively as the “Assigned Interest”). Such sale and
assignment is without recourse to the Assignor and, except as expressly provided in this
Assignment, without representation or warranty by the Assignor.

1. Assignor:       

[Assignor [is] [is not] a Defaulting Lender]

2. Assignee:        [, an Affiliate/Approved Fund of       ]

3. Borrower(s):       

4. Administrative Agent:       , as the administrative agent under the Loan
Agreement

5. Loan Agreement: The Loan Agreement, dated as of       , by and among Borrower(s), the Lenders
parties thereto, [and] Administrative Agent[, and the other agents parties thereto]

6. Assigned Interest:

	 	 	 	 	 
	Aggregate

Amount of

Commitment/Loans

for all Lenders

	 	

Amount of

Commitment/Loans

Assigned
	 	

Percentage

Assigned of

Commitment/Loans
	 

	 	 
	 	 
	$     

	 	$     
	 	     %
	 

	 	 
	 	 

Effective Date:       , 20       [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE
THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment are hereby agreed to:

ASSIGNOR:

      

	 	 	 	By:

Name:

Title:

ASSIGNEE:

      

	 	 	 	By:

Name:

Title:

[Consented to and] Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By:       

Name:      

Title:      

[Consented to:]

      

By:       

Name:      

Title:      

10

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and to consummate the transactions
contemplated hereby, and (iv) it is not a Defaulting Lender; and (b) assumes no responsibility with
respect to (i) any statements, warranties or representations made in or in connection with the Loan
Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents, or any collateral thereunder, (iii) the
financial condition of Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or observance by Borrower, any of
its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and to
consummate the transactions contemplated hereby and to become a Lender under the Loan Agreement,
(ii) it meets all requirements of an Eligible Assignee under the Loan Agreement (subject to receipt
of such consents as may be required under the Loan Agreement), (iii) from and after the Effective
Date, it shall be bound by the provisions of the Loan Agreement as a Lender thereunder and, to the
extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has
received a copy of the Loan Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 4.16 thereof, as applicable, and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision independently
and without reliance on Administrative Agent or any other Lender to enter into this Assignment and
to purchase the Assigned Interest on the basis of which it has made such analysis and decision, and
(v) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it
pursuant to the terms of the Loan Agreement, duly completed and executed by the Assignee; and (b)
agrees that (i) it will, independently and without reliance on Administrative Agent, the Assignor
or any other Lender, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the obligations which by
the terms of the Loan Documents are required to be performed by it as a Lender.

1.3 Assignee’s Address for Notices, etc. Attached hereto as Schedule 1 is all
contact information, address, account and other administrative information relating to the
Assignee.

2. Payments. From and after the Effective Date, Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignee whether such amounts have accrued prior to or on or after the
Effective Date. The Assignor and the Assignee shall make all appropriate adjustments in payments
by Administrative Agent for periods prior to the Effective Date or with respect to the making of
this Assignment directly between themselves.

3. General Provisions. This Assignment shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment may be
executed in any number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment by facsimile shall be effective
as delivery of a manually executed counterpart of this Assignment. This Assignment shall be
governed by, and construed in accordance with, the Law of the State of Florida.

11

SCHEDULE 1 TO ASSIGNMENT AND ASSUMPTION

ADMINISTRATIVE DETAILS

(Assignee to list names of credit contacts, addresses, phone and facsimile numbers, electronic mail

addresses and account and payment information)

(a) LIBOR Lending Office:

Assignee name:

Address:

Attention:

Telephone: ( )

Facsimile: ( )

Electronic Mail:

(b) Domestic Lending Office:

Assignee name:

Address:

Attention:

Telephone: ( )

Facsimile: ( )

Electronic Mail:

(c) Notice Address:

Assignee name:

Address:

Attention:

Telephone: ( )

Facsimile: ( )

Electronic Mail:

(d) Payment Instructions:

Account No.

Attention:

Reference:

12

EXHIBIT G

PROMISSORY NOTE

$            

FOR VALUE RECEIVED,        ([individually and
collectively,] “Borrower”) hereby promises to pay to the order of        as
a “Lender” under that certain Loan Agreement (as the same may be amended or modified from
time to time, the “Loan Agreement”), dated as of [      , 20      ] [the date hereof]
among Borrower, certain lenders, and Bank of America, N.A., a national banking association, as
Administrative Agent (together with any and all of its successors and assigns in such capacity,
“Administrative Agent”), without offset, in immediately available funds in lawful money of
the United States of America, at the Administrative Agent’s Office as defined in the Loan
Agreement, the principal sum of        DOLLARS
($     ) (or the unpaid balance of all principal advanced against this Note, if
that amount is less), together with interest on the unpaid principal balance of this Note from day
to day outstanding as hereinafter provided. Capitalized terms used herein and not otherwise
defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

1. Note; Interest; Payment Schedule. This Note (as may be amended, modified,
supplemented, restated and replaced from time to time, the “Note”) is [one of] the Note[s]
referred to in the Loan Agreement and is entitled to the benefits thereof [and subject to
prepayment in whole or in part as provided therein]. The entire principal balance of this Note
then unpaid shall be due and payable at the times as set forth in the Loan Agreement. Accrued
unpaid interest shall be due and payable at the times and at the interest rate as set forth in the
Loan Agreement until all principal and accrued interest owing on this Note shall have been fully
paid and satisfied. Any amount not paid when due and payable hereunder shall, to the extent
permitted by applicable Law, bear interest and if applicable a late charge as set forth in the Loan
Agreement.

2. Security; Loan Documents. The security for this Note includes a
            (which, as it may
have been or may be amended, restated, modified or supplemented from time to time, is herein called
the “Mortgage”) dated [as of       , 20      ] [of even date herewith] from Borrower to
     , covering certain property in [CITY], [COUNTY], State of
     described therein (the “Property”). This Note, the Mortgage, the
Loan Agreement and all other documents now or hereafter securing, guaranteeing or executed in
connection with the loan evidenced, in whole or in part, by this Note (the “Loan”), are, as
the same have been or may be amended, restated, modified or supplemented from time to time, herein
sometimes called individually a “Loan Document” and together the “Loan Documents.”

3. Defaults.

(a) Upon the occurrence and during the continuance of a Default, Administrative Agent on
behalf of the Lender and the other Lenders shall have the rights to declare the unpaid principal
balance and accrued but unpaid interest on this Note, and all other amounts due hereunder and under
the other Loan Documents, at once due and payable (and upon such declaration, the same shall be at
once due and payable), to foreclose any liens and security interests securing payment hereof and to
exercise any of its other rights, powers and remedies under this Note, under any other Loan
Document, or at Law or in equity.

(b) All of the rights, remedies, powers and privileges (together, “Rights”) of
Administrative Agent on behalf of the Lender and the other Lenders provided for in this Note and in
any other Loan Document are cumulative of each other and of any and all other Rights at Law or in
equity. The resort to any Right shall not prevent the concurrent or subsequent employment of any
other appropriate Right. No single or partial exercise of any Right shall exhaust it or preclude
any other or further exercise thereof, and every Right may be exercised at any time and from time
to time. No failure by Administrative Agent, Lender and the other Lenders to exercise, and no
delay in exercising any Right, including, but not limited to, the right to accelerate the maturity
of this Note, shall be construed as a waiver of any Default or as a waiver of any Right. Without
limiting the generality of the foregoing provisions, the acceptance by the holder hereof from time
to time of any payment under this Note which is past due or which is less than the payment in full
of all amounts due and payable at the time of such payment, shall not (i) constitute a waiver of or
impair or extinguish the right of Administrative Agent, Lender and the other Lenders to accelerate
the maturity of this Note or to exercise any other Right at the time or at any subsequent time, or
nullify any prior exercise of any such Right, (ii) constitute a waiver of the requirement of
punctual payment and performance or a novation in any respect, or (iii) in any way excuse the
existence of a Default.

(c) If any holder of this Note retains an attorney in connection with any Default or at
maturity or to collect, enforce or defend this Note or any other Loan Document in any lawsuit or in
any probate, reorganization, bankruptcy, arbitration or other proceeding, or if Borrower sues any
holder in connection with this Note or any other Loan Document and does not prevail, then Borrower
agrees to pay to such holder, in addition to principal, interest and any other sums owing to such
holder hereunder and under the other Loan Documents, all costs and expenses incurred by such holder
in trying to collect this Note or in any such suit or proceeding, including attorneys’ fees and
expenses, investigation costs and all court costs, whether or not suit is filed hereon, whether
before or after the Maturity Date, or whether in connection with bankruptcy, insolvency or appeal,
or whether collection is made against Borrower or any guarantor or endorser or any other Person
primarily or secondarily liable hereunder.

4. Heirs, Successors and Assigns. The terms of this Note and of the other Loan
Documents shall bind and inure to the benefit of Borrower and Lender and their respective
successors and assigns permitted by the Loan Agreement. The foregoing sentence shall not be
construed to permit Borrower to assign the Loan except as otherwise permitted under the Loan
Agreement. As further provided in the Loan Agreement, Lender may, at any time, sell, transfer, or
assign all or a portion of its interest in this Note, the Mortgage and the other Loan Documents, as
set forth in the Loan Agreement.

5. General Provisions. Time is of the essence with respect to Borrower’s obligations
under this Note. If more than one Person executes this Note as Borrower, all of said parties shall
be jointly and severally liable for payment of the indebtedness evidenced hereby. Borrower and all
sureties, endorsers, guarantors and any other party now or hereafter liable for the payment of this
Note in whole or in part, hereby severally (a) waive demand, presentment for payment, notice of
dishonor and of nonpayment, protest, notice of protest, notice of intent to accelerate, notice of
acceleration and all other notices (except any notices which are specifically required by this Note
or any other Loan Document), filing of suit and diligence in collecting this Note or enforcing any
of the security herefor; (b) agree to any substitution, subordination, exchange or release of any
such security or the release of any party primarily or secondarily liable hereon; (c) agree that
neither Administrative Agent, Lender nor any other Lender shall be required first to institute suit
or exhaust its remedies hereon against Borrower or others liable or to become liable hereon or to
perfect or enforce its rights against them or any security herefor; (d) consent to any extensions
or postponements of time of payment of this Note for any period or periods of time and to any
partial payments, before or after maturity, and to any other indulgences with respect hereto,
without notice thereof to any of them; (e) waive the benefit of all homestead and similar
exemptions as to this Note; (f) agree that their liability under this Note shall not be affected or
impaired by any determination that any security interest or lien given to secure this Note is
invalid or unperfected; and (g) hereby subordinate any and all rights against Borrower and any of
the security for the payment of this Note, whether by subrogation, agreement or otherwise, until
this Note is paid in full. A determination that any provision of this Note is unenforceable or
invalid shall not affect the enforceability or validity of any other provision and the
determination that the application of any provision of this Note to any Person or circumstance is
illegal or unenforceable shall not affect the enforceability or validity of such provision as it
may apply to other Persons or circumstances. This Note may not be amended except in a writing
specifically intended for such purpose and executed by the party against whom enforcement of the
amendment is sought. Captions and headings in this Note are for convenience only and shall be
disregarded in construing it. The words “include” and “including” shall be
interpreted as if followed by the words “without limitation.” THIS NOTE, AND ITS VALIDITY,
ENFORCEMENT AND INTERPRETATION, SHALL BE GOVERNED BY FLORIDA LAW (WITHOUT REGARD TO ANY CONFLICT OF
LAWS PRINCIPLES) AND APPLICABLE UNITED STATES FEDERAL LAW.

6. Notices. Any notice, request, or demand to or upon Borrower or the holder hereof
shall be deemed to have been properly given or made when delivered in accordance with the Loan
Agreement.

7. No Usury. It is expressly stipulated and agreed to be the intent of Borrower and
Lender 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 shall control every other covenant
and agreement in this Note and the other Loan Documents. If applicable state or federal law should
at any time be judicially interpreted so as to render usurious any amount called for under this
Note or under any of the other Loan Documents, or contracted for, charged, taken, reserved, or
received with respect to the Loan, or if Lender’s exercise of the option to accelerate the Maturity
Date, or if any prepayment by Borrower results in Borrower having paid any interest in excess of
that permitted by applicable law, then it is Lender’s express intent that all excess amounts
theretofore collected by Lender shall be credited on the principal balance of this Note and all
other indebtedness and the provisions of this Note and the other Loan Documents shall immediately
be deemed reformed and the amounts thereafter collectible hereunder and thereunder reduced, without
the necessity of the execution of any new documents, so as to comply with the applicable law, but
so as to permit the recovery of the fullest amount otherwise called for hereunder or 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 Loan does not exceed the maximum lawful rate from time to time in effect
and applicable to the Loan (the “Maximum Rate”) for so long as the Loan is outstanding. The Lender
may, in determining the Maximum Rate, take advantage of: (i) the rate of interest permitted by
Florida Statutes, Chapter 658, by reason of both Section 687.12 Florida Statutes (“Interest rates;
parity among licensed lenders or creditors”) and 12 United States Code, Sections 85 and 86, and
(ii) any other law, rule, or regulation in effect from time to time, available to Lender which
exempts Lender from any limit upon the rate of interest it may charge or grants to Lender the right
to charge a higher rate of interest than that allowed by Florida Statutes, Chapter 687

8. WAIVER OF JURY TRIAL. EACH OF BORROWER AND LENDER HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING OR ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE AND
HERREBY: (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER; (b) ACKNOWLEDGES THAT THIS WAIVER AND THE PROVISIONS OF THIS
SECTION WERE A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE LOAN DOCUMENTS; (c) CERTIFIES
THAT THIS WAIVER IS KNOWINGLY, WILLINGLY, AND VOLUNTARILY MADE; (d) AGREES AND UNDERSTANDS THAT
THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH
PROCEEDING OR ACTION, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS OR ANY OTHER
AGREEMENT, AND FURTHER AGREES THAT SUCH PARTY SHALL NOT SEEK TO CONSOLIDATE ANY SUCH PROCEEDING OR
ACTION WITH ANY OTHER PROCEEDING OR ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED;
(e) AGREES THAT BORROWER AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN
ANY PROCEEDING OR ACTION AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL; AND (f) REPRESENTS
AND WARRANTS THAT SUCH PARTY HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE
MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO
DISCUSS THIS WAIVER WITH COUNSEL

THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

IN WITNESS WHEREOF, Borrower has duly executed this Note as of the date first above written.

	 
	BORROWER

     

	 

	FORM

By:

	Name:

	Title:

13

EXHIBIT H

SCHEDULE OF LENDERS

BANK OF AMERICA, N.A., as Administrative Agent:

Notices:

	 	 	 
	101 E. Kennedy Boulevard, 6th Floor

	Tampa, Florida 33602

Mail Code: FL-1-400-06-10

Attn:

	 	

Janet Forshey

Telephone: (813) 225-8488

Facsimile:

Electronic Mail: janet.n.forshey@baml.com

 

Payment Instructions:

Account No.: 1367051723000

Attention: Janet Forshey

Reference: HF Logistics-SKX T1, LLC

BANK OF AMERICA, N.A., as Lender:

	 	 	 	 	 
	Domestic and LIBOR Lending Office:
	 	Commitment Amount: $35,000,000.00
	
 
	 	 	 	Pro Rata Share: 50%
	
 
	 	 	 	 
	101 E. Kennedy Boulevard, 6th Floor
	 	 
	Tampa, Florida 33602

Mail Code: FL-1-400-06-10

Attn:

	 	

Janet Forshey

Telephone: (813) 225-8488

Facsimile:
	 	

Electronic Mail: janet.n.forshey@baml.com

Notices:

	 	 	 
	101 E. Kennedy Boulevard, 6th Floor

	Tampa, Florida 33602

Mail Code: FL-1-400-06-10

Attn:

	 	

Janet Forshey

Telephone: (813) 225-8488

Facsimile:

Electronic Mail: janet.n.forshey@baml.com

Payment Instructions:

Account No.: 1367051723000

Attention: Janet Forshey

Reference: HF Logistics-SKX T1, LLC

CIT BANK, N.A., as a Lender:

	 	 	 	 	 
	Domestic and LIBOR Lending Office:	 	Commitment Amount: $17,500,000.00
	CIT Bank, N.A.
	 	
 
	 	Pro Rata Share: 25%
	 	 	
 
	 	 
	888 East Walnut Street	 	 
	Pasadena, California 91101	 	 
	Attn:
	 	Olga Fomina

Telephone: (310) 449-2414

Facsimile: (866) 518-6540

Electronic Mail: olga.fomina@owb.com

	 	

Notices:

	 	 	 
	CIT Bank, N.A.
	 	

	888 East Walnut Street
	Pasadena, California 91101
	Attn:
	 	Sandra Tahan

Telephone: (626) 535-8013

Facsimile: (866) 518-6540

Electronic Mail: sandra.tahan@owb.com

Payment Instructions:

Account No.: 8519808800000

Attention: Olga Fomina

Reference: HF Logistics-SKX T1, LLC

RAYMOND JAMES BANK, N.A., as a Lender:

	 	 	 
	Domestic and LIBOR Lending Office:Commitment Amount: $17,500,000.00
	Raymond James Bank, N.A. Pro Rata Share: 25%
	 
	710 Carillon Parkway

St. Petersburg, Florida 33716

Attn:
	 	

Gregory Hargrove

Telephone: (727) 567-4173

Facsimile: (866) 597-8830

Electronic Mail: greg.hargrove@raymondjames.com

	 	 	 

Notices:

	 	 	 
	Raymond James Bank, N.A.
	710 Carillon Parkway
	St. Petersburg, Florida 33716
	Attn:
	 	Tonia Armes

Telephone: (727) 567-1922

Facsimile: (866) 597-4002

Electronic Mail: tonia.armes@raymondjames.com

	 	 	 

Payment Instructions:

Account No.: 3574100

Attention: Tonia Armes

Reference: RJBank — HF Logistics-SKX T1, LLC

14

EXHIBIT I

SWAP CONTRACTS

1. Swap Documentation. Borrower shall deliver to Swap Counterparty the following
documents and other items, executed and acknowledged as appropriate, all in form and substance
satisfactory to Administrative Agent and Swap Counterparty: (a) Master Agreement in the form
published by the International Swaps and Derivatives Association, Inc. and related schedule in the
form agreed upon between Borrower (or its Affiliate) and Swap Counterparty; (b) a confirmation
under the foregoing, if applicable; (c) an acknowledgment from Swap Counterparty agreeing, among
other things, to pay to Administrative Agent all payments due from Swap Counterparty pursuant to
the Swap Contract; (d) if Borrower (or its Affiliate) is anything other than a natural Person,
evidence of due authorization to enter into transactions under the foregoing Swap Contract with
Swap Counterparty, together with evidence of due authorization and execution of any Swap Contract;
and (e) such other title endorsements, documents, instruments, opinions and agreements as
Administrative Agent and Swap Counterparty may require to evidence satisfaction of the conditions
set forth in this Section 1, including a swap endorsement to the Title Insurance in form and
substance satisfactory to Administrative Agent to the extent available.

2. Conveyance and Security Interest. To secure the Obligations, Borrower hereby
transfers, assigns and transfers to Administrative Agent, and grants to Administrative Agent a
security interest in, all of Borrower’s right, title and interest, but not its obligations, duties
or liabilities for any breach, in, under and to the Swap Contract, any and all amounts received by
Borrower in connection therewith or to which Borrower is entitled thereunder, and all proceeds of
the foregoing. All amounts payable to Borrower under the Swap Contract shall be paid to
Administrative Agent and shall be applied to such Obligations as Administrative Agent determines in
its sole discretion (except upon the occurrence and during the continuance of a Default, in which
event Administrative Agent shall not be obligated to apply same to the Obligations).

3. Cross-Default. It shall be a Default under this Agreement if any default occurs as
defined under any Swap Contract as to which Borrower (or its Affiliate) is the Defaulting Party and
is not cured prior to the expiration of any applicable cure or notice period, or if any Termination
Event occurs under any Swap Contract as to which Borrower (or its Affiliate) is an Affected Party.
As used in this Section, the terms “Defaulting Party,” “Termination Event” and
“Affected Party” have the meanings ascribed to them in the Swap Contract.

4. Remedies; Cure Rights. In addition to any and all other remedies to which
Administrative Agent, Lenders and Swap Counterparty are entitled at law or in equity, Swap
Counterparty shall have the right, to the extent so provided in any Swap Contract or any Master
Agreement relating thereto, (a) to declare an event of default, termination event or other similar
event thereunder and to designate an Early Termination Date as defined under the Master Agreement,
and (b) to determine net termination amounts in accordance with the Swap Contract and to setoff
amounts between Swap Contracts. Administrative Agent shall have the right at any time (but shall
have no obligation) to take in its name or in the name of Borrower (or its Affiliate) such action
as Administrative Agent may at any time determine to be necessary or advisable to cure any default
under any Swap Contract or to protect the rights of Borrower (or its Affiliate) or Swap
Counterparty thereunder; provided, however, that Administrative Agent shall give
prior written notice to Borrower before taking any such action. For this purpose, Borrower hereby
constitutes Administrative Agent its true and lawful attorney-in-fact with full power of
substitution, which power of attorney is coupled with an interest and irrevocable, to exercise, at
the election of Administrative Agent, any and all rights and remedies of Borrower (or its
Affiliate) under the Swap Contract, including making any payments thereunder and consummating any
transactions contemplated thereby, and to take any action that Administrative Agent may deem proper
in order to collect, assert or enforce any claim, right or title, in and to the Swap Contract
hereby assigned and conveyed, and generally to take any and all such action in relation thereto as
Administrative Agent shall deem advisable. Administrative Agent shall not incur any liability if
any action so taken by Administrative Agent or on its behalf shall prove to be inadequate or
invalid. Borrower expressly understands and agrees that Administrative Agent is not hereby
assuming any duties or obligations of Borrower (or its Affiliate) to make payments to Swap
Counterparty under any Swap Contract or under any other Loan Document. Such payment duties and
obligations remain the responsibility of Borrower (or its Affiliate) notwithstanding any language
in this Agreement.

5. Miscellaneous Covenants.

(a) Borrower shall, upon entering into any Swap Contract, pay all sums required to be paid by
Borrower thereunder. Borrower shall keep the Swap Contract in full force and effect, and shall not
amend or permit the amendment of same without the prior consent of Administrative Agent.

(b) In the event that Borrower breaches any of its obligations pursuant to Section 1 or
Section 5(a) of this Exhibit I, in addition to all other rights and remedies of
Administrative Agent and Lenders, Administrative Agent may, but shall have no obligation to, at
Borrower’s sole cost and expense and on Borrower’s behalf, enter into a Swap Contract required
hereunder. Borrower hereby constitutes Administrative Agent its true and lawful attorney-in-fact
with full power of substitution, which power of attorney is coupled with an interest and
irrevocable, to enter into such Swap Contract if Borrower fails to do so within two (2) days after
written demand from Administrative Agent or at any time after the occurrence of and during the
continuance of a Default or to amend and terminate such Swap Contract, pay all sums due thereunder,
and generally to take any and all such action in relation thereto as Administrative Agent shall
deem advisable. Administrative Agent shall not incur any liability if any action so taken by
Administrative Agent or on its behalf shall prove to be inadequate or invalid. Borrower expressly
understands and agrees that Administrative Agent is not hereby assuming any duties or obligations
of Borrower under any Swap Contract or under any other Loan Document. All payment duties to the
Swap Counterparty, and other obligations under such Swap Contract entered into by Administrative
Agent on behalf of Borrower, shall be the responsibility of Borrower notwithstanding any language
in this Agreement.

(c) No Swap Contract shall alter, impair, restrict, limit or modify in any respect the
obligation of Borrower to pay interest or other sums due under the Loan Documents, as and when the
same become due and payable.

15

EXHIBIT J

FINANCIAL COVENANTS

(a) Debt Service Coverage Ratio. Borrower shall maintain a Debt Service Coverage
Ratio as of any Determination Date of at least 1.15 to 1.00. This ratio will be tested annually.
The Debt Service Coverage Ratio may be satisfied by a voluntary paydown of the Loan by Borrower,
subject to the satisfaction of any conditions to prepayment, including the payment of any
prepayment fee or premium, together with a mutually agreed-upon reduction in the committed amount
of the Loan.

(b) Minimum Tangible Net Worth Covenant of Guarantor. Guarantor shall maintain on a
consolidated basis a Minimum Tangible Net Worth equal to at least Six Million Dollars ($6,000,000).
The foregoing may be satisfied by the contribution of additional cash equity (or other assets
acceptable to Administrative Agent in its sole discretion) to Guarantor by its Constituent Member.
This covenant will be tested annually.

(c) Definitions.

“Debt Service Coverage Ratio” means, as of any Determination Date, for the applicable
Calculation Period the ratio, as determined by Lender, of Net Operating Income to Debt Service.

“Actual Operating Revenue” means, with respect to any period of time, all income, computed
on an annualized basis in accordance with generally accepted accounting principles, collected from
the ownership and operation of the Property from whatever source (other than any source affiliated
with Borrower or any Guarantor but including revenue derived from the Skechers Lease), including
rents, utility charges, escalations, service fees or charges, license fees, parking fees, and other
required pass-throughs, but excluding sales, use and occupancy or other taxes on receipts
required to be accounted for by Borrower to any Governmental Authority, refunds from tenants,
uncollectible accounts, sales of furniture, fixtures and equipment, interest income, condemnation
awards, insurance proceeds (other than business interruption or other loss of income insurance),
unforfeited security deposits, utility and other similar deposits, income from tenants not paying
rent, income from tenants in bankruptcy, and non-recurring or extraordinary income, including lease
termination payments. Actual Operating Revenue shall be net of rent concessions and credits. Actual
Operating Revenue shall be subject to appropriate seasonal and other adjustments in Lender’s
reasonable discretion.

“Assumed Interest Rate” means six percent (6%) per annum.

“Calculation Period” means the most recently ended twelve (12) month period ending on the
last day of the applicable reporting period for which Lender requires Financial Statements.

“Debt Service” means the higher of the following:

(a) the actual principal (if any) and interest payable under the Loan (after giving effect to
any Swap Contract) during the applicable Calculation Period; or

(b) the payments of principal and interest that would have been payable under a hypothetical
loan during the Calculation Period, assuming (i) an initial loan balance equal to the outstanding
principal balance of the Loan at the inception of the Calculation Period, (ii) an interest rate
equal to the Assumed Interest Rate, and (iii) amortization of the aggregate principal indebtedness
over a twenty five (25) year amortization period.

“Determination Date” means the last day of each calendar year during the term of the Loan.

“Minimum Tangible Net Worth” means as of any Determination Date the value of total assets
as evidenced by Guarantor’s then current Financial Statement (including leaseholds and leasehold
improvements and reserves against assets but excluding goodwill, patents, trademarks, trade names,
organization expense, unamortized debt discount and expense, capitalized or deferred research and
development costs, deferred marketing expenses, and other like intangibles, and monies due from
affiliates, officers, directors, employees, shareholders, members or managers) less total
liabilities, including but not limited to accrued and deferred income taxes, but excluding the
non-current portion of Subordinated Liabilities. For the purposes of computing Minimum Tangible
Net Worth of the Guarantor, the real property owned by the Guarantor shall be valued at cost.

“Net Operating Income” means, with respect to any period of time, the amount obtained by
subtracting actual Operating Expenses from Actual Operating Revenue.

“Operating Expenses” means, with respect to any period of time, the total of all expenses
actually paid or payable, computed on an annualized basis in accordance with generally accepted
accounting principles, of whatever kind relating to the ownership, operation, maintenance or
management of the Property, including utilities, ordinary repairs and maintenance, insurance
premiums, ground rents, if any, license fees, Taxes, advertising expenses, payroll and related
taxes, the management fees actually paid under any management agreement, operational equipment or
other lease payments as approved by Lender, normalized capital expenditures, and normalized tenant
improvement costs and/or leasing commissions and capital reserve payments or deposits, but
specifically excluding depreciation and amortization, income taxes, debt service on the Loan,
and any item of expense that would otherwise be covered by the provisions hereof but which is paid
by any tenant under such tenant’s Lease or other agreement provided such reimbursement by tenant is
not included in the calculation of Actual Operating Revenue. Operating Expenses shall be subject
to other adjustments in Lender’s reasonable discretion. Any expense which in accordance with
accrual basis income tax accounting is depreciated or amortized over a period which exceeds one (1)
year shall be treated as an expense, for the purposes of the foregoing calculations, ratably over
the period of depreciation or amortization.

“Subordinated Liabilities” means liabilities subordinated to Borrower’s obligations to
Lender in a manner acceptable to Lender in its sole discretion.

16

EXHIBIT K-1

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement, dated as of [      ], 20[      ], by and
among [      ], as borrower, Bank of America, N.A., as Administrative Agent,
and each lender from time to time party thereto (as amended, modified, extended, restated,
replaced, or supplemented from time to time, the “Loan Agreement”).

Pursuant to the provisions of Section 2.1(e) of the Loan Agreement, the undersigned
hereby certifies that (i) it is the sole record and beneficial owner of the interest in the Loan
(as well as any Note evidencing such interest in the Loan) in respect of which it is providing this
certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it
is not a ten percent shareholder of Borrower within the meaning of Section 871(h)(3)(B) of the Code
and (iv) it is not a controlled foreign corporation related to Borrower as described in Section
881(c)(3)(C) of the Code.

The undersigned has furnished Administrative Agent and Borrower with a certificate of its
non-U.S. Person status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees
that (1) if the information provided on this certificate changes, the undersigned shall promptly so
inform Borrower and Administrative Agent, and (2) the undersigned shall have at all times furnished
Borrower and Administrative Agent with a properly completed and currently effective certificate in
either the calendar year in which each payment is to be made to the undersigned, or in either of
the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall
have the meanings given to them in the Loan Agreement.

	 	 	 
	[NAME OF LENDER]

	By:

Date:

	 	     

Name:     

Title:     

     , 20[      ]

17

EXHIBIT K-2

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement, dated as of [      ], 20[      ], by and
among [      ], as borrower, Bank of America, N.A., as Administrative Agent,
and each lender from time to time party thereto (as amended, modified, extended, restated,
replaced, or supplemented from time to time, the “Loan Agreement”).

Pursuant to the provisions of Section 2.1(e) of the Loan Agreement, the undersigned
hereby certifies that (i) it is the sole record and beneficial owner of the participation in
respect of which it is providing this certificate, (ii) it is not a bank within the meaning of
Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of Borrower within the
meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation
related to Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S.
Person status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees that (1)
if the information provided on this certificate changes, the undersigned shall promptly so inform
such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with
a properly completed and currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar years preceding such
payments.

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall
have the meanings given to them in the Loan Agreement.

	 	 	 
	[NAME OF PARTICIPANT]

	By:

Date:

	 	     

Name:     

Title:     

     , 20[      ]

18

EXHIBIT K-3

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement, dated as of [      ], 20[      ], by and
among [      ], as borrower, Bank of America, N.A., as Administrative Agent,
and each lender from time to time party thereto (as amended, modified, extended, restated,
replaced, or supplemented from time to time, the “Loan Agreement”).

Pursuant to the provisions of Section 2.1(e) of the Loan Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the participation in respect of which it
is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial
owners of such participation, (iii) with respect to such participation, neither the undersigned nor
any of its direct or indirect partners/members is a bank extending credit pursuant to a loan
agreement entered into in the ordinary course of its trade or business within the meaning of
Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten
percent shareholder of Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none
of its direct or indirect partners/members is a controlled foreign corporation related to Borrower
as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one
of the following forms from each of its partners/members that is claiming the portfolio interest
exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN
from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest
exemption. By executing this certificate, the undersigned agrees that (1) if the information
provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2)
the undersigned shall have at all times furnished such Lender with a properly completed and
currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall
have the meanings given to them in the Loan Agreement.

	 	 	 
	[NAME OF PARTICIPANT]

	By:

Date:

	 	     

Name:     

Title:     

     , 20[      ]

19

EXHIBIT K-4

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement, dated as of [      ], 20[      ], by and
among [      ], as borrower, Bank of America, N.A., as Administrative Agent,
and each lender from time to time party thereto (as amended, modified, extended, restated,
replaced, or supplemented from time to time, the “Loan Agreement”).

Pursuant to the provisions of Section 2.1(e) of the Loan Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the interest in the Loan (as well as any
Note evidencing such interest in the Loan) in respect of which it is providing this certificate,
(ii) its direct or indirect partners/members are the sole beneficial owners of such interest in the
Loan (as well as any Note evidencing such interest in the Loan), (iii) with respect to the
extension of credit pursuant to the Loan Agreement or any other Loan Document, neither the
undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant
to a loan agreement entered into in the ordinary course of its trade or business within the meaning
of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten
percent shareholder of Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none
of its direct or indirect partners/members is a controlled foreign corporation related to Borrower
as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished Administrative Agent and Borrower with IRS FormW-8IMY
accompanied by one of the following forms from each of its partners/members that is claiming the
portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an
IRS Form W-8BEN from each of such partner’s/member’s beneficial owners that is claiming the
portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if
the information provided on this certificate changes, the undersigned shall promptly so inform
Borrower and Administrative Agent, and (2) the undersigned shall have at all times furnished
Borrower and Administrative Agent with a properly completed and currently effective certificate in
either the calendar year in which each payment is to be made to the undersigned, or in either of
the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall
have the meanings given to them in the Loan Agreement.

	 	 	 
	[NAME OF LENDER]

	By:

Date:

	 	     

Name:     

Title:     

     , 20[      ]

20

EXHIBIT L

PERMITTED ENCUMBRANCE

21

EXHIBIT M

INTENTIONALLY OMITTED

22

EXHIBIT N

STRUCTURE CHART

23

EXHIBIT O

RENT ROLL

The Property is occupied entirely by Skechers pursuant to and subject to the terms and conditions
of the Skechers Lease, which lease is in good standing as of the date hereof.

24

EXHIBIT P

INTENTIONALLY OMITTED

25

EXHIBIT Q

INTENTIONALLY OMITTED

26

EXHIBIT R

EXTENSION CONDITIONS

Borrower’s option to extend the Maturity Date for the Extension Term shall be subject to the
following conditions being satisfied by Borrower at its sole expense to the satisfaction of
Administrative Agent and the Required Lenders:

(a) Borrower shall have delivered to Administrative Agent a written notice of Borrower’s
election to extend the Maturity Date no later than forty-five (45) days, but no earlier than one
hundred twenty (120) days, prior to the Initial Maturity Date;

(b) No Default or Potential Default shall have occurred and then be continuing as of (i) the
date of Borrower’s notice of election to extend the Maturity Date or (ii) the Initial Maturity
Date;

(c) All representations and warranties made by Borrower and Guarantor in the Loan Documents
(and any certificate, document or financial or any other statement furnished pursuant to or in
connection therewith) shall be true and correct in all material respects on and as of the Initial
Maturity Date to the extent such representations and warranties are applicable on such date, with
the same force and effect as if made on and as of such date;

(d) No event shall have occurred or other state of facts shall exist on and as of the Initial
Maturity Date which has or could reasonably have a Material Adverse Effect;

(e) If the then-existing Swap Contract is scheduled to expire upon the commencement of or
during the Extension Term, Borrower shall, in connection with the extension of the Maturity Date,
on or before the Initial Maturity Date, enter into a new Swap Contract and satisfy all of the terms
and conditions of Exhibit I;

(f) On the Initial Maturity Date, Borrower shall have delivered to Administrative Agent a
certificate of a duly authorized officer of Borrower, reasonably satisfactory to Administrative
Agent, certifying as to the matters set forth in the foregoing clauses (a) through
(e), a certificate of a duly authorized officer of Guarantor certifying as to its
representations and warranties as provided in the foregoing clause (c) and any other
certificates, instruments and other documents reasonably required by Administrative Agent to
evidence satisfaction of the conditions in this Exhibit R;

(g) Borrower shall have satisfied a Debt Service Coverage Ratio (as defined in Exhibit
J) of at least 1.15 to 1.00 as of the Determination Date immediately preceding the Initial
Maturity Date, provided that the definition of Debt Service that shall be used in the calculation
of the Debt Service Coverage Ratio with respect to this Exhibit R shall be as set forth in
clause (k) of this Exhibit R.

(h) All applicable regulatory requirements including appraisal requirements, shall have been
satisfied (provided that the extension shall not be conditioned on a loan to value determination);

(i) Borrower shall have paid the Extension Fee to Administrative Agent for the benefit of
Lenders on or prior to the Initial Maturity Date; and

(j) Borrower shall have paid to Administrative Agent all other reasonable costs and expenses
incurred by Administrative Agent and Lenders in connection with such extension on or prior to the
Initial Maturity Date, whether or not the extension is effective.

(k) For the purposes of calculating the Debt Service Coverage Ratio under this Exhibit
R only, “Debt Service” shall mean the higher of the following:

(i) the actual principal (if any) and interest payable under the Loan (after giving
effect to any Swap Contract) during the applicable Calculation Period;

(ii) the payments of principal and interest that would have been payable under a
hypothetical loan during the Calculation Period, assuming (i) an initial loan balance equal
to the outstanding principal balance of the Loan at the inception of the Calculation
Period, (ii) an interest rate equal to the Assumed Interest Rate, and (iii) amortization of
the aggregate principal indebtedness over a twenty five (25) year amortization period; or

(iii) the payments of principal and interest that would have been payable under a
hypothetical loan during the Calculation Period assuming (i) an initial loan balance equal
to the outstanding principal balance of the Loan at the inception of the Calculation
Period, (ii) an interest rate equal to then-current rate on ten (10) year United States
treasury securities plus two hundred fifty (250) basis points and (iii) amortization of the
aggregate principal indebtedness over a twenty five (25) year amortization period.

(iv)

27

EXHIBIT S

FORM OF SECURED PARTY DESIGNATION NOTICE

Secured Party Designation Notice

	 	 	 
	TO:
	 	Bank of America, N.A., as Administrative Agent

	RE:
	 	Loan Agreement, dated as of [Date of Loan Agreement], by and among

[Borrower(s) Name(s)], a [Jurisdiction(s) and Type(s) of

Organization(s)], the Lenders and Bank of America, N.A., as

Administrative Agent (as amended, modified, extended, restated,

replaced, or supplemented from time to time, the “Loan Agreement”;

capitalized terms used herein and not otherwise defined shall have

the meanings set forth in the Loan Agreement)

	DATE:
	 	[Date]

[Name of Hedge Bank] (the “Secured Party”) hereby notifies you, pursuant to the terms
of the Loan Agreement, that the Secured Party meets the requirements of a Hedge Bank under the
terms of the Loan Agreement and is a Hedge Bank under the Loan Agreement and the other Loan
Documents.

Delivery of an executed counterpart of a signature page of this notice by fax transmission or
other electronic mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a
manually executed counterpart of this notice.

A duly authorized officer of the undersigned has executed this notice as of the day and year
set forth above.

        ,

as a Hedge Bank

By:

Name:

Title:

28exhibit_4-1.htm

Exhibit 4.1

Articles of Association

of

Partner Communications Company Ltd.

 

Table of Contents

	
Chapter One - General

	
3

	
1.

	
Definitions and Interpretation

	
3

	
2.

	
Public Company

	
5

	
3.

	
The Purpose of the Company

	
5

	
4.

	
The Objectives of the Company

	
5

	
5.

	
Limited Liability

	
5

	
Chapter Two - The Share Capital of the Company

	
6

	
6.

	
Share Capital

	
6

	
7.

	
The Issuance of Shares and Other Equity Securities

	
6

	
8.

	
Calls for Payment

	
6

	
9.

	
The Shareholder Registers of the Company and the Issuance of Share Certificates

	
8

	
10.

	
Transfer of Shares of the Company

	
9

	
10A.

	
Limitations on Transfer of Shares

	
11

	
10B.

	
Required Minimum Holdings

	
13

	
11.

	
Bearer Share Certificate

	  13
	
12.

	
Pledge of Shares

	
13

	
13.

	
Changes in the Share Capital

	  14
	
Chapter Three - General Meetings

	  16
	
14.

	
The Authority of the General Meeting

	
16

	
15.

	
Kinds of General Meetings

	
17

	
16.

	
The Holding of General Meetings

	
18

	
17.

	
The Agenda of General Meetings

	
19

	
18.

	
Discussions in General Meetings

	
20

	
19.

	
Voting of the Shareholders

	
21

	
20.

	
The Appointment of a Proxy

	
24

	
21.

	
Deed of Vote, Voting Via the Internet

	
26

	
Chapter Four - The Board of Directors

	
27

	
22.

	
The Authority of the Board of Directors

	
27

	
23.

	
The Appointment of Directors and the Termination of Their Office

	
27

	
24.

	
Actions of Directors

	
34

	
25.

	
Committees of the Board of Directors

	
37

	
25A.

	
Committee for Security Matters

	
38

	
25B.

	
Approval of Certain Related Party Transactions

	
39

	
26.

	
Chairman of the Board of Directors

	  40
	
Chapter Five - Office Holders who are not Directors and the Auditor

	
41

 

	
27.

	
The General Manager

	
41

	
28.

	
The Corporate Secretary, Internal Controller and Other Office Holders of the Company

	
43

	
29.

	
The Auditor

	
44

	
Chapter Six - The Share Capital of the Company and its Distribution

	
45

	
30.

	
Permitted Distributions

	
45

	
31.

	
Dividends and Bonus Shares

	45
	
32.

	
The Acquisition of Shares

	
45

	
Chapter Seven - Insurance, Indemnification and Release of Officers

	50
	
33.

	
Insurance of Office Holders

	
50

	
34.

	
Indemnification of Office Holders

	
50

	
35.

	
Release of Office Holders

	
52

	
35A.

	
Certain Legal Amendments

	
53

	
Chapter Eight - Liquidation and Reorganization of the Company

	
53

	
36.

	
Liquidation

	
53

	
37.

	
Reorganization

	
53

	
Chapter Nine - Miscellaneous

	
54

	
38.

	
Notices

	
54

	
Chapter 10 - Intentionally Deleted

	
55

	
39.

	
Intentionally Deleted

	55
	
40.

	
Intentionally Deleted

	
55

	
41.

	
Intentionally Deleted

	
55

	
42.

	
Intentionally Deleted

	
55

	
Chapter 11 - Compliance with the License/ Limitations on Ownership and Control

	55
	
43.

	
Compliance

	55
	
44.

	
Limitations on Ownership and Control

	
55

	
45.

	
Cross Ownership and Control

	60

 

  

2

  

Chapter One - General

 

	
1.

	
Definitions and Interpretation

 

	
  

	
 1.1.

	
The following terms in these Articles of Association bear the meaning appearing alongside them below:

 

	
Articles of Association

	
The Articles of Association of the Company, as set forth herein or as amended, whether explicitly or pursuant to any Law.

 

	
Business Day

	
Sunday to Thursday, inclusive, with the exception of holidays and official days of rest in the State of Israel.

 

	
Companies Law

	
The Companies Law, 1999, as amended.

 

	
Companies Ordinance

 

	
The Companies Ordinance [New Version], 1983, as amended.

	
Companies Regulations

 

Company

	
Regulations issued pursuant to the Companies Ordinance or Companies Law.

 

Partner Communications Company Ltd.

 

	
Deed of Authorization

	
As specified in Article 20 of these Articles.

 

	
Director

	
A Director of the Company in accordance with the definition in Section 1 of the Companies Law, including an Alternate Director or an empowered representative.

 

	
Document

	
A printout and any other form of written or printed words, including documents transmitted in writing, via facsimile, telegram, telex, e–mail, on a computer or through any other electronic instrumentation, producing or allowing the production of a copy and/or an output of a document.

 

	
Founding Shareholder

	
A “founding shareholder or its substitute” as defined in Section 21.8 of the License.

 

	
Founding Israeli Shareholder

	
A Founding Shareholder who also qualifies as an “Israeli Entity” as defined for purposes of Section 22A of the License.

 

	
Financial Statements

	
The balance sheet, profit and loss statement, statement of changes in the share capital and cash flow statements, including the notes attached to them.

 

	
Law

	
The provisions of any law (“din”) as defined in the Interpretation Law, 1981.

 

	
License

	
The Company’s General License for the Provision of Mobile Radio Telephone Services using the Cellular Method in Israel dated April 7, 1998, and the permit issued by the Ministry of Communications dated April 7, 1998, as amended.

 

 

  

3

  

 

	
Linkage

	
Payments with respect to changes in the Israeli consumer price index or the representative exchange rate of NIS vis-a-vis the U.S. dollar, as published by the Bank of Israel, or any other rate which replaces such rate.

 

	
Minimum Founding 

Shareholders Holding

	
The minimum shareholding in the Company required to be held by Founding Shareholders pursuant to Section 22A.1 of the License.

	 	 
	
Minimum Israeli Holding

	
The minimum shareholding in the Company required to be held by Founding Israeli Shareholders pursuant to Section 22A.2 of the License.

 

	
NIS

	
New Israeli Shekel

 

	
Office

 

Office Holder

	
The registered office of the Company.

 

An office holder of the Company in accordance with the definition of "nose misra" in Section 1 of the Companies Law.

 

	
Ordinary Majority

	
A simple majority of the shareholders who are entitled to vote and who voted in a General Meeting in person, by means of a proxy or by means of a deed of voting.

	  	  
	
Qualified Israeli Director

	
A director who at all times (i) is a citizen of Israel and resident in Israel, (ii) qualifies to serve as a director under applicable law, (iii) qualifies as a Director with Clearance as defined in section 25A, and (iv) is appointed to the Board of Directors of the Company pursuant to section 23.2.6 of these Articles.

 

	
Record Date

	
The date on which a shareholder must be registered as a Shareholder in the Shareholders Register in order to receive the right to participate in and vote at an upcoming general meeting of Shareholders.

 

	
Securities

	
Shares, bonds, capital notes or securities negotiable into shares and certificates, conferring a right in such securities, or other securities issued by the Company.

 

	
Securities Law

	
The Securities Law, 1968, as amended.

 

	
Securities Regulations

 

	
Regulations issued pursuant to the Securities Law.

	
Shares

	
shares in the share capital of the Company.

 

  

4

  

	
Shareholder

	
Anyone registered as a shareholder in the Shareholder Register of the Company and any other shareholder of the Company.

 

	
Shareholders Register

 

	
the Company’s Shareholders Register.

	
Special Majority

	
A majority of at least three quarters of the votes of shareholders who are entitled to vote and who voted in a general meeting, in person, by means of a proxy or by means of a deed of voting.

 

	
  

	
1.2.

	
The provisions of Sections 3 through 10 of the Interpretation Law, 1981, shall also apply to the interpretation of these Articles of Association, mutatis mutandis, unless the context otherwise requires.

 

	
  

	
1.3.

	
Except as otherwise provided in this Article, each word and expression in these Articles of Association shall have the meaning given to it in accordance with the Companies Law, and to the extent that no meaning is attached to it in the Companies Law, the meaning given to it in the Companies Regulations, and if they lack reference thereto, as stated, the meaning given to it in the Securities Law or Securities Regulations, and in the absence of any meaning, as stated, the meaning given to it in another Law, unless it contradicts the relevant provision or its contents.

	
2.

	
Public Company

The Company is a public company.

	
3.

	
The Purpose of the Company

The purpose of the Company is to operate in accordance with business considerations to generate profits; provided, however, the Board of Directors is entitled to donate reasonable amounts to worthy causes, even if such a donation is not within the framework of business considerations, as stated.

 

	
4.

	
The Objectives of the Company

The Company shall engage in any legal business.

 

	
5.

	
Limited Liability

The liability of the Shareholders of the Company is limited, each one up to the par value of the Shares allotted to him which remains unpaid, and only to that amount. In any event, if the Company’s share capital shall include at any time Shares without a nominal value, the Shareholders’ liability in respect of such Shares shall be limited to the payment of up to NIS 0.01 for each such Share allotted to them and which remains unpaid, and only to that amount.

  

5

  

Chapter Two - The Share Capital of the Company

 

	
6.

	
Share Capital

 

	
  

	
 6.1.

	
The authorized share capital of the Company is NIS 2,350,000, divided into 235,000,000 ordinary shares at a par value of NIS 0.01 each (hereinafter: the “Ordinary Shares”).

 

	
  

	
 6.2.

	
Each Ordinary Share shall confer upon its holder the right to receive notices of, and to attend and vote in, general meetings, and to one vote for each Ordinary Share held by him.

 

	
  

	
 6.3.

	
Each class of Shares shall also confer equal rights to each holder in the class with respect to the amounts of equity which were paid or credited as paid with respect to their par value, in all matters pertaining to dividends, the distribution of bonus shares and any other distribution, return of capital and participation in the distribution of the balance of the assets of the Company upon liquidation.

 

	
  

	
 6.4.

	
The provisions of these Articles of Association with respect to Shares, shall also apply to other Securities issued by the Company, mutatis mutandis.

 

	
7.

	
The Issuance of Shares and Other Securities

 

	
  

	
 7.1.

	
The Board of Directors of the Company may issue Shares and other equity Securities of the Company, up to the limit of the registered share capital of the Company. In the event that the share capital of the Company includes several classes of Shares and other equity Securities, no shares and other equity Securities shall be issued above the limit of the registered share capital for its class.

 

	
  

	
 7.2.

	
The Board of Directors of the Company may issue redeemable Securities, having such rights and subject to such conditions as will be determined by the Board of Directors.

 

	
  

	
 7.3.

	
Subject to the provisions of these Articles of Association, the Board of Directors may allot Shares and other Securities according to such stipulations and conditions, at par value or by way of a premium, as it deems fit.

 

	
  

	
 7.4.

	
The Board of Directors may decide on the issuance of a series of bonds or other debt securities within the framework of its authority or to take a loan on behalf of the Company and within the limits of the same authority.

 

	
  

	
 7.5.

	
The Shareholders of the Company at any given time shall not have any preemption right or priority or any other right whatsoever with respect to the acquisition of Securities of the Company. The Board of Directors, in its sole discretion, may decide to offer Securities of the Company first to existing Shareholders or to any one or more of them.

 

	
  

	
 7.6.

	
The Company is entitled to pay a commission (including underwriting fees) to any person, in consideration for underwriting services, or the marketing or distribution of Securities of the Company, whether reserved or unreserved, as determined by the Board of Directors. Payments, as stated in this Article, may be paid in cash or in Securities of the Company, or partly in one manner and partly in another manner.

 

  

6

  

	
8.

	
Calls of Payment

 

	
  

	
 8.1.

	
In the event that according to the terms of a Share allotment, there is no fixed date for the payment of any part of the price that is to be paid for the Shares, the Board of Directors may issue from time to time calls of payment to the Shareholders with respect to the moneys which were not yet paid by them in relation to the Shares (hereinafter: “Calls of Payment” or a “Call of Payment”, as the case may be).

 

	
  

	
 8.2.

	
A Call of Payment shall set a date, which will not be earlier than thirty days from the date of the notice, by which the amount indicated in the Call of Payment must be paid, together with interest, Linkage and expenses incurred in consequence of the non–payment, according to the rates and amounts set by the Board of Directors. The notice shall further specify that in the event of a failure to pay within the date fixed, the Shares in respect of which payment or the rate is required may be forfeited. In the event that a Shareholder fails to meet any of its obligations, under a Call of Payment, the Share in respect of which said notice was issued pursuant to the resolution of the Board of Directors may be forfeited at any time thereafter. The forfeiture of Shares shall include the forfeiture of all the dividends on same Shares which were not paid prior to the forfeiture, even if such dividends were declared.

 

	
  

	
 8.3.

	
Any amount, which according to the terms of a Share allotment, must be paid at the time of issuance or at a fixed date, whether at the par value of the Share or at a premium, shall be deemed for the purposes of these Articles of Association to be combined in a duly issued Call of Payment. In the event of non-payment of any such amount, all the provisions of these Articles of Association shall apply with respect to such an amount, as if a proper Call of Payment has been made and an appropriate notice thereof was given.

 

	
  

	
 8.4.

	
The Board of Directors, acting reasonably and in good faith, may differentiate among Shareholders with respect to amounts of Calls of Payment and/or their payment time.

 

	
  

	
 8.5.

	
The joint holders of Shares shall be liable, jointly and severally, for the payment of Calls of Payment in respect of such Shares.

 

	
  

	
 8.6.

	
Any payment for Shares shall be credited, pro rata, according to the par value of and according to the premium on such Shares.

 

	
  

	
 8.7.

	
A Call of Payment may be cancelled or deferred to another date, as may be decided by the Board of Directors. The Board of Directors may waive any interest, Linkage and expenses or any part of them.

 

  

7

  

	
  

	
 8.8.

	
The Board of Directors may receive from a Shareholder any payments for his Shares, in addition to the amount of any Call of Payment, and the Board of Directors may pay to the same Shareholder interest on amounts which were paid in advance, as stated above, or on same part of them, in excess of the amount of the Call of Payment, or to make any other arrangement with him which may compensate him for the advancement of the payment.

 

	
  

	
 8.9.

	
A Shareholder shall not be entitled to a dividend or to his other rights as a Shareholder, unless he has fully paid the amounts specified in the Calls of Payment issued to him, together with interest, Linkage and expenses, if any, unless otherwise determined by the Board of Directors.

 

	
  

	
 8.10.

	
The Board of Directors is entitled to sell, re-allot or transfer in any other manner any Share which was forfeited, in the manner it decides, with or without any amount paid on the Share or deemed as paid on it.

 

	
  

	
 8.11.

	
The Board of Directors is entitled at all times prior to the sale, reallotment or transfer of the forfeited Share to cancel the forfeiture on the conditions it may decide.

 

	
   

	
 8.12.

	
A person whose Shares have been forfeited shall, notwithstanding the forfeiture, remain liable to pay to the Company all moneys which, up until the date of forfeiture, were due and payable by him to the Company in respect of the Shares, including interest, Linkage and expenses up until the actual payment date in the same manner as if the Shares were not forfeited, and shall be compelled to fulfill all the requirements and claims which the Company was entitled to enforce with respect to the Shares up until the forfeiture date, without any decrease or discount for the value of the Shares at the time of forfeiture. His liability shall cease only if and when the Company receives the full payment set at the time of allotment of the Shares.

 

	
  

	
 8.13.

	
The Board of Directors may collect any Calls of Payment which were not paid on the forfeited Shares or any part of them, as it deems fit, but it is not obligated to do so.

 

	
  

	
 8.14.

	
The forfeiture of a Share shall cause, as of the time of forfeiture, the cancellation of all rights in the Company and of any claim or demand against the Company with respect to that Share, and of other  rights and obligations of the Shareholder in respect of the Company, save as otherwise provided by Law.

 

	
9.

	
The Shareholder Registers of the Company and the Issuance of Share Certificates

 

	
  

	
 9.1.

	
The Company shall maintain a Shareholder Register and a Register of Significant Shareholders, together with a notation of any Exceptional Holdings in accordance with the provisions set forth in Article 10A below, to be administered by the corporate secretary of the Company, subject to the oversight of the Board of Directors.

 

  

8

  

	
  

	
 9.2.

	
A Shareholder registered in the Shareholders Register is entitled to receive from the Company, free of charge, within two months after an allotment or the registration of a transfer (unless the conditions of the allotment fix a different period) one or several certificates with respect to all the Shares of a certain class registered in his favor, which certificate must specify the number of the Shares, the class of the Shares and the amount paid for them and also any other detail deemed important by the Board of Directors. In the event a Share is held jointly, the Company shall not be obligated to issue more than one certificate for all the joint holders, and the delivery of such a certificate to any of the joint holders shall be viewed as if it was delivered to all of them.

 

	
  

	
 9.3.

	
Each and every Share certificate shall be stamped with the seal or the stamp of the Company or bear the Company’s printed name, and shall also bear the signature of one Director and of the corporate secretary of the Company, or of two Directors or of any other person appointed by the Board of Directors for this purpose.

 

	
  

	
 9.4.

	
The Company is entitled to issue a new Share certificate in place of an issued Share certificate which was lost or spoiled or corrupted, following evidence thereto and guarantees and indemnities, as may be required by the Company and the payment of an amount determined by the Board of Directors.

 

	
  

	
 9.5.

	
Where two people or more are registered as joint holders of Shares, each of them is entitled to acknowledge the receipt of a dividend or other payments in connection with such jointly held Shares, and such acknowledgement of any one of them shall be good discharge of the Company’s obligation to pay such dividend or other payments.

 

	
10.

	
Transfer of Shares

 

	
  

	
 10.1.

	
The Shares are transferable. The transfer of Shares shall not be registered unless the Company receives a deed of transfer (hereinafter: “Deed of Transfer”) or other proper Document or instrument of transfer. A Deed of Transfer shall be drawn up in the following manner or in any substantially similar manner or in any other manner approved by the Board of Directors.

Deed of Transfer

I, _________________, (hereinafter: “The Transferor”) of ____________, do hereby transfer to ___________ (hereinafter: “The Transferee”) of __________, for valuable consideration paid to me, _________ Share(s) having a par value of NIS 0.01 each, numbered ________ to ________ (inclusive), of Partner Communications Company Ltd. (hereinafter: the “Company”) to hold unto the Transferee, his executors, administrators and assigns, subject to the same terms and conditions on which I held the same at the time of the execution hereof; and I, the said Transferee, do hereby agree to take the said Share(s) subject to the aforesaid terms and conditions.

  

9

  

In witness whereof we have hereunto set our hands this _____ day of _________, _____.

 

The Transferor                                                      The Transferee

Name: _______________                                  Name: _______________

Signature: ____________                                  Signature: ____________

Witness to the Signature of:

The Transferor                                                      The Transferee

Name: _____________                                       Name: _____________

Signature: ____________                                  Signature: ____________

 

	
  

	
10.2.

	
The transfer of Shares which are not fully paid, or Shares on which the Company has a lien or pledge, shall have no validity unless approved by the Board of Directors, which may, in its absolute discretion and without giving any reasoning thereto, decline the registration of such a transfer. The Board of Directors may deny a transfer of Shares as aforesaid and may also impose as a condition on the transfer of Shares as aforesaid an undertaking by the transferee to meet the obligations of the transferor with respect to the Shares or the obligations for which the Company has a lien or pledge on the Shares, signed by the transferee together with the signature of a witness, authenticating the signature of the transferee.

 

	
  

	
10.3.

	
The transfer of a fraction of a Share shall lack validity.

 

	
  

	
10.4.

	
A transferor of Shares shall continue to be regarded as the holder of the transferred Shares, until the name of the transferee of the Shares is registered in the Shareholder Register of the Company.

 

	
  

	
10.5.

	
A Deed of Transfer shall be filed with the Company’s office for registration, together with the Share Certificates for the Shares which are to be transferred (if such are issued) and also any other evidence which the Company may require with respect to the proprietary right of the transferor or with respect to his right to transfer the Shares. Deeds of Transfer which are registered shall remain with the Company. The Company is not obligated to retain the Deeds of Transfer and the Share Certificates, which may be cancelled, after the completion of a seven-year period from the registration of the transfer.

 

	
  

	
10.6.

	
A joint Shareholder may transfer his right in a Share. In the event the transferring Shareholder does not hold the relevant Share Certificate, the transferor shall not be obligated to attach the Share Certificate to the Deed of Transfer, so long as the Deed of Transfer shall indicate that the transferor does not hold the Share Certificate, that the right he has in the Shares therein is being transferred, and that the transferred Share is held jointly with others, together with their details.

 

	
  

	
10.7.

	
The Company may require payment of a fee for the registration of the transfer, at an amount or a rate determined by the Board of Directors from time to time.

 

  

10

  

	
  

	
 10.8.

	
The Board of Directors may close the Shareholder Register for a period of up to thirty days in each calendar year.

 

	
  

	
 10.9.

	
Subject to Article 10.10, upon the death of a Shareholder registered in the Shareholders Register, the Company shall recognize the custodians or administrators of the estate or executors of the will, and in the absence of such, the lawful heirs of such Shareholder, as the only holders of the right for the Shares of the deceased Shareholder, after receipt of evidence to the entitlement thereto, as determined by the Board of Directors.

 

	
  

	
 10.10.

	
In the event that a deceased Shareholder registered in the Shareholders Register held Shares jointly with others, the Company shall acknowledge each survivor as a joint Shareholder with respect to said Shares, unless all the joint holders in the Share notify the Company in writing, prior to the death of any of them, of their will that the provisions of this Article shall not apply to them. The foregoing shall not release the estate of such joint Shareholder of any obligation in relation to a Share which is held jointly.

 

	
  

	
 10.11.

	
A person acquiring a right in Shares in consequence of being a custodian, administrator of the estate, the heir of a Shareholder registered in the Shareholders Register, a receiver, liquidator or a trustee in a bankruptcy of a Shareholder registered in the Shareholders Register or according to another provision of the Law, is entitled, after providing evidence to his right, to the satisfaction of the Board of Directors, to be registered as the Shareholder or to transfer such Shares to another person, subject to the provisions of these Articles of Association with respect to transfers.

 

	
  

	
 10.12.

	
A person becoming entitled to a Share because of the death of a Shareholder registered in the Shareholders Register shall be entitled to receive, and to give receipts for, dividends or other payments paid or distributions made, with respect to the Share, but shall not be entitled to receive notices with respect to General Meetings of the Company or to participate or vote therein with respect to that Share, or to exercise any other right of such Shareholder, until he has been registered in the Shareholder Register as the holder of that Share.

 

	
  

	
 10.13.

	
Intentionally Deleted

 

	
10A.

	
Limitations on Transfer of Shares

 

	 	
10A.1.

	
Exceptional Holdings shall be registered in the Register of Members (Shareholder Register) together with a notation that such holdings have been classified as “Exceptional Holdings”, immediately upon the Company’s learning of such matter.  Notice of such registration shall be sent by the Company to the registered holder of the Exceptional Holding and to the Minister of Communications.

 

	 	
10A.2.

	
Exceptional Holdings, registered in the manner set forth in Article 10A.1, shall not entitle the holder to any rights in respect to his holdings, and such holdings shall be considered “Dormant Shares” within the meaning of Section 308 of the Companies Law, except, however, that the holder of such shares shall be entitled to receive dividends and other distributions to shareholders (including the right to participate in a rights offering calculated on the basis of Means of Control of the Company (as defined in the License), provided, however, that such additional holdings shall be considered Exceptional Holdings).  Therefore, any action taken or claim made on the basis of a right deriving from an Exceptional Holdings shall have no effect, except for the receipt of dividends or other distribution as stated above.

  

11

  

Without derogating from the above:

 

	
  

	
 10A.2.1

	
A Shareholder participating in a vote of the General Meeting will certify to the Company prior to the vote or, if the vote is by Deed of Vote, on the Deed of Vote, as to whether or not his holdings in the Company or his vote require consent pursuant to Sections 21 and 23 to the License; in the event the shareholder does not provide notification as aforesaid, he shall not vote and his vote shall not be counted.

 

	
  

	
 10A.2.2

	
No Director shall be appointed, elected or removed on the basis of Exceptional Holdings.  In the event a Director is appointed, elected or removed from his position as a Director as set forth above, such appointment, election or removal shall have no effect.

 

	
  

	
 10A.2.3

	
Exceptional Holdings shall have no voting rights at a General Meeting of the Company.

For the purposes of this Article 10A, “Exceptional Holdings” means the holdings of Traded Means of Control held without the consent of the Minister of Communications pursuant to Section 21 to the License or as a result of a breach of the provisions of Section 23 to the License, and all holdings of a holder of Traded Means of Control who acted contrary to the provisions of Section 24 to the License; and as long as the consent of the Minister of Communications  is required but has not been obtained pursuant to Section 21 to the License, or the circumstances exist which constitute a violation of the provisions of Sections 23 or 24 to the License.

For the purposes of this Article 10A, “Traded Means of Control” means Means of Control (as defined in the License) including Global or American Depositary Shares (GDRs or ADRs) or similar certificates, registered for trade on a securities exchange in Israel or abroad or which have been offered to the public in connection with a prospectus, and are held by the public in Israel or abroad.

 

	
  

	
 10A.3.

	
The provisions of Article 10A shall not apply to those who were Shareholders of the Company on the eve of the first registration of the Company's Shares for trade.

 

  

12

  

 

	
10B.

	
Required Minimum Holdings

	
  

	
10B.1.

	
Our License requires that Founding Shareholders hold Shares constituting at least the Minimum Founding Shareholders Holding and that Founding Israeli Shareholders hold Shares constituting at least the Minimum Israeli Holding.

	
  

	
10B.2.

	
Shares held by Founding Shareholders, to the extent such Shares constitute all or a portion of the Minimum Founding Shareholders Holding, shall be registered directly in the name of the Founding Shareholder in the shareholder register of the Company, with a note indicating that such Shares are “Minimum Founding Shareholders Shares.”  Minimum Founding Shareholders Shares that are held by Founding Israeli Shareholders, to the extent such Shares constitute all or a portion of the Minimum Israeli Holding, shall also be recorded in the shareholder register with a note indicating that such Shares are “Minimum Israeli Holding Shares".

 

	
  

	
10B.3.

	
No transfer by a Founding Shareholder of Minimum Founding Shareholder Shares or by a Founding Israeli Shareholder of Minimum Israeli Holding Shares shall be recorded in the Company’s shareholder register, or have any effect, unless the Company’s Secretary shall have received written confirmation from the Ministry of Communications that the transfer complies with section 21.8 of the License.  The Company Secretary may, in his or her discretion, refer any question in connection with the recording of Minimum Founding Shareholders Shares or Minimum Israeli Holding Shares, or their transfer, to the Company’s audit committee whose decision shall be binding on the Company.  As a condition to any transfer of Minimum Founding Shareholders Shares or Minimum Israeli Holding Shares, the transferee shall be required to deliver to the Company’s Secretary (a) a share transfer deed that includes an undertaking by the transferee to comply with all requirements of section 22A of the License and (b) all information requested with respect to the transferee’s qualification as a Founding Shareholder and/or a Founding Israeli Shareholder.

 

	
11.

	
Bearer Share Certificate

The Company shall not issue bearer Share Certificates which grant the bearer rights in the Shares specified therein.

 

	
12.

	
Pledge of Shares

 

	
  

	
 12.1.

	
The Company shall have a first degree pledge on, and a right to create a lien on, all Shares which are not fully paid and registered in the name of any Shareholder, and the proceeds of their sale, with respect to moneys (which payment time is due or not) whose payment was already called or are to be paid up within a fixed time. Furthermore, the Company shall have a first degree pledge right on all the Shares (other than Shares which were fully paid) registered in the name of any Shareholder to secure the payment of moneys which are due from him or from his property, whether with respect to his own debts or debts jointly with others. The said pledge shall also apply to dividends, declared from time to time, with respect to these Shares.

 

  

13

  

	
  

	
 12.2.

	
For purposes of the realization of any such pledge and or lien, the Board of Directors is entitled to sell the Shares which are the subject of the pledge or lien, or any part of them, as it deems fit. No sale, as aforesaid, shall be carried out, until the date fixed for the payment has passed and a notice in writing was transferred to same Shareholder with respect to the intention of the Company to sell them, on condition that the amounts were not paid within fourteen days after the notice.

 

	
  

	
 12.3.

	
The proceeds of any such sale, after deduction for the payment of the sale expenses, shall serve for the covering of the debts or obligations of said Shareholder, and the balance (if any) shall be paid to him.

 

	
  

	
 12.4.

	
In the event that a sale of Shares was carried out pursuant to the realization of a pledge or a lien, pursuant to the presumptive authority conferred above, the Board of Directors is entitled to register such Shares in the Shareholder Register in favor of the buyer, and the buyer shall not be under the obligation to examine the fitness of such actions or the manner in which the purchase price paid for such Shares was used. After the said Shares are registered in the Shareholder Register in favor of the buyer, no person shall have the right to object to the validity of the sale.

	
13.

	
Changes in the Share Capital

The General Meeting is entitled to take any of the following actions at all times, so long as the resolution of the General Meeting is adopted by a Special Majority.

	
  

	
 13.1.

	
 Increasing the Share Capital

To increase the share capital of the Company, regardless of whether all the Shares registered at such a time were issued or not. The increased share capital shall be divided into Shares having ordinary rights or preference rights or deferred rights or other special rights (subject to the special rights of an existing class of Shares) or subject to conditions and restrictions with respect to entitlement to dividend, return of capital, voting or other conditions, as may be instructed by the General Meeting in a resolution with respect to the increase of the share capital, and in the absence of a special provision, according to the terms determined by the Board of Directors.

 

	
  

	
 13.2.

	
 Classes of Shares

To divide the share capital of the Company into various classes of Shares, and to set and change the rights attaching to each class of Shares, according to the conditions specified below:

 

	
  

	
13.2.1.

	
So long as it was not otherwise set in the Share allotment conditions, the rights of any class may be changed pursuant to a resolution of the General Meeting of the Shareholders of each class of Shares, separately, or upon the written consent of all the Shareholders of all classes.

 

  

14

  

	
  

	
13.2.2.

	
The rights conferred on the holders of Shares of a certain class shall not be deemed to have been changed as a result of the creation or allotment of other Shares having identical rights, unless it was otherwise stipulated in the allotment conditions of said Shares.

 

	
  

	
13.3.

	
Amalgamation and Redivision of the Share Capital

To amalgamate and redivide the share capital of the Company, entirely or partially, into Shares having a higher or lesser par value than that stated in these Articles of Association. In the event that in consequence of such amalgamation, there are Shareholders left with fractions of Shares, the Board of Directors if approved by the Shareholders at a General Meeting in adopting the resolution for amalgamation of the capital, may agree as follows:

 

	
  

	
13.3.1.

	
To sell the total of all the fractional shares and to appoint a trustee for this purpose, in whose name Share Certificates representing the fractions shall be issued, who will sell them, with the proceeds received after the deduction of commissions and expenses to be distributed to those entitled. The Board of Directors shall be entitled to decide that Shareholders who are entitled to proceeds which are below an amount determined by it, shall not receive the proceeds of the sale of the fractional shares, and their share in the proceeds shall be distributed among the Shareholders who are entitled to proceeds, in an amount greater than the amount that was determined, relative to the proceeds to which they are entitled;

 

	
  

	
13.3.2.

	
To allot to any Shareholder, who is left with a fractional Share following the amalgamation, Shares of the class of Shares prior to the amalgamation, which are fully paid, in such a number, the amalgamation of which together with the fractional Share shall complete a whole Share, and an allotment as stated shall be viewed as valid shortly before the amalgamation;

 

	
  

	
13.3.3.

	
To determine that Shareholders shall not be entitled to receive a Share in exchange for a fractional Share resulting from the amalgamation of a half or smaller fraction of the number of Shares, whose amalgamation creates a single Share, and they shall be entitled to receive a whole Share in exchange for a fractional Share, resulting from the amalgamation of more than a half of the number of Shares, whose amalgamation creates a whole Share.

 

In the event that an action pursuant to Articles 13.3.2 or 13.3.3 above requires the allotment of additional Shares, their payment shall be effected in a manner similar to that applicable to the payment of Bonus Shares. An amalgamation and redivision, as aforesaid, shall not be regarded as a change in the rights attaching to the Shares which are the subject of the amalgamation and redivision.

 

  

15

  

	
  

	
13.4.

	
 Cancellation of Unissued Share Capital

To cancel registered share capital which has not yet been allotted, so long as the Company is not under an obligation to allot these Shares.

 

	
  

	
13.5.

	
 The Division of the Share Capital

To divide the share capital of the Company, entirely or partially, into Shares having a lower par value than those stated in these Articles of Association, by way of dividing the Shares of the Company at such a time, entirely or partially.

 

	
  

	
13.6.

	
 The provisions specified in this Article 13 shall also apply to other equity Securities of the Company, mutatis mutandis.

Chapter Three - General Meetings

 

	
14.

	
The Authority of the General Meeting

	
  

	
 14.1.

	
 Subjects within the authority of the General Meeting

The following matters shall require the approval of the General Meeting:

	
  

	
14.1.1.

	
Changes in the Articles of Association, if adopted by a Special Majority.

 

	
  

	
14.1.2.

	
The exercise of the authority of the Board of Directors, if resolved by a Special Majority that the Board of Directors is incapable of exercising its authority, and that the exercise of any of its authority is essential to the orderly management of the Company.

 

	
  

	
14.1.3.

	
The appointment or reappointment of the Company’s auditor, the termination or non-renewal of his service, and to the extent required by Law and not delegated to the Board of Directors, the determination of his fee.

 

	
  

	
14.1.4.

	
The appointment of Directors, including external Directors.

 

	
  

	
14.1.5.

	
To the extent required by the provisions of Section 255 of the Companies Law, the approval of actions and transactions with interested parties and also the approval of an action or a transaction of an Office Holder which might constitute a breach of the duty of loyalty.

 

	
  

	
14.1.6.

	
Changes in the share capital of the Company, if adopted by a Special Majority as set forth in Article 13 above.

 

  

16

  

	
  

	
14.1.7.

	
A merger of the Company, as defined in the Companies Law.

 

	
  

	
14.1.8.

	
Changes in the objectives of the Company as set forth in Article 4 above, if adopted by a Special Majority.

 

	
  

	
14.1.9.

	
Changes in the name of the Company, if adopted by a Special Majority.

 

	
  

	
14.1.10.

	
Liquidation, if adopted by a Special Majority.

 

	
  

	
14.1.11.

	
Settlements or Arrangements pursuant to Section 350 of the Companies Law.

 

	
  

	
14.1.12.

	
Any other matters which applicable Law requires to be dealt with at General Meetings of the Company.

	
  

	
14.2.

	
The authority of the General Meeting to transfer authorities between corporate organs.

The General Meeting, by a Special Majority, may assume the authority which is given to another corporate organ, and may transfer the authority which is given to the General Manager to the Board of Directors.

The taking or transferring of authorities, as aforesaid, shall be with regard to a specific issue or for a specific period of time not exceeding the required period of time under the circumstances, all as stated in the resolution of the General Meeting.

 

	
15.

	
Kinds of General Meetings

	
  

	
15.1.

	
 Annual Meetings

A General Meeting shall be convened at least once a year, within fifteen months of the last general meeting. The meeting shall be held at the registered offices of the Company, unless otherwise determined by the Board of Directors. These General Meetings shall be referred to as “Annual Meetings”.

 

	
  

	
15.1.1.

	
An Annual Meeting shall be convened to discuss the following:

	
  

	
(One)

	
The Financial Statements and the Report of the Board of Directors, as of December 31st of the calendar year preceding the year of the annual meeting.

	
  

	
(Two)

	
The Report of the Board of Directors with respect to the fee paid to the Company’s auditor.

  

17

  

	
  

	
15.1.2.

	
The Annual Meeting shall be convened to also adopt resolutions on the following matters:

	
  

	
(One)

	
The appointment of Directors and the termination of their office in accordance with Article 23 below.

	
  

	
(Two)

	
The appointment of an auditor or the renewal of his office, subject to the provisions of Article 29 below.

	
  

	
15.1.3.

	
The Annual Meeting may discuss, and decide upon, any additional matter on the agenda of such meeting.

 

	
  

	
 15.2.

	
Extraordinary Meetings

General Meetings of the Shareholders of the Company which are not convened in accordance with the provisions of Article 15.1 above, shall be referred to as “Extraordinary Meetings”. An Extraordinary Meeting shall discuss, and decide upon, any matter  (other than those referred to in Article 15.1.1 or 15.1.2),  for which the Extraordinary Meeting was convened.

	
  

	
 15.3.

	
Class Meetings

The provisions of these Articles of Association with respect to General Meetings shall apply, mutatis mutandis, to meetings of a class of Shareholders of the Company.

 

	
16.

	
The Holding of General Meetings

 

	
  

	
 16.1.

	
The Convening of the Annual Meeting

The Board of Directors shall convene Annual Meetings in accordance with the provisions of Article 15.1 above.

 

	
  

	
 16.2.

	
The Convening of an Extraordinary Meeting

The Board of Directors may convene an Extraordinary Meeting, as it decides, provided, however, that it shall be obligated to convene an Extraordinary Meeting upon the demand of one of the following:

 

	
  

	
16.2.1.

	
Any two Directors or a quarter of the Directors, whichever is lower; or

 

	
  

	
16.2.2.

	
any one or more Shareholders, holding alone or together (i) at least 5% of the issued share capital of the Company and at least 1% of the voting rights of the Company; or (ii) at least 5% of the voting right of the Company.

  

18

  

	
  

	
16.3.

	
Date of Convening an Extraordinary Meeting Upon Demand

The Board of Directors, which is required to convene a general meeting in accordance with Article 16.2 above shall announce the convening of the General Meeting within twenty-one (21) days from the receipt of a demand in that respect, and the date fixed for the meeting shall not be more than thirty-five (35) days from the publication date of the announcement of the General Meeting.

In the event that the Board of Directors shall not have convened an Extraordinary Meeting, as required in this Article, those demanding its convening or half of the Shareholders which demand it subject to Article 16.2.2, are entitled to convene the meeting themselves, so long as it is convened within three months from the date on which the demand was filed, and it shall be convened, inasmuch as possible, in the same manner by which meetings are convened by the Board of Directors. In the event that a General Meeting is convened as aforesaid, the Company shall bear the reasonable costs and expenses incurred by those demanding it.

 

	
  

	
16.4.

	
Notice of Convening a General Meeting

Notice of a General Meeting shall be sent to each registered Shareholder in the Shareholders Register of the Company as of the Record Date set by the Board of Directors for that meeting, no later than five (5) days after that Record Date, unless a different notice time is required by Law and cannot be altered or waived in the Company’s Articles of Association.

A General Meeting may be convened following a shorter notice period, if the written consent of all the Shareholders who are entitled at such time to receive notices has been obtained. A waiver by a Shareholder can also be made in writing after the fact and even after the convening of the General Meeting.

	
  

	
16.5.

	
Contents of the Notice

Subject to the provisions of any Law, a notice with respect to a general meeting shall specify the agenda of the meeting, the location, the proposed resolutions and also the arrangements for voting by means of a Deed of Vote or a Deed of Authorization, and the requirements of Article 10A.2.1.

Any notice to be sent to the Shareholders registered in the Shareholders Register shall also include a draft of the proposed resolutions or a concise description of their particulars.

 

	
17.

	
The Agenda of General Meetings

 

	
  

	
17.1.

	
The agenda of the General Meeting shall be determined by the Board of Directors and shall also include issues for which an Extraordinary Meeting is being convened in accordance with Article 15.2 above, or demanded in accordance with Article 17.2 below.

	
  

	
17.2.

	
One or more Shareholders holding alone or in the aggregate, one percent or more of the share capital of the Company may request that the Board of Directors include an issue on the agenda of a general meeting to be convened in the future. The Board of Directors shall incorporate such issue on the agenda of such a future general meeting, provided that the Board of Directors determines, in its discretion, such issue is suitable to be discussed in the General Meeting of the Company.

  

19

  

	
  

	
17.3.

	
The General Meeting shall only adopt resolutions on issues which are on its agenda.

 

	
  

	
17.4.

	
So long as it is not otherwise prescribed by Law, the General Meeting is entitled to accept or reject a proposed resolution which is on the agenda of the General Meeting, the draft or concise description of the particulars of which were published by the Company, including slight alterations, however, it is not entitled to take a resolution, which is materially different than the proposed resolution, unless permitted under applicable Law.

 

	
18.

	
Discussions in General Meetings

	
  

	
18.1.

	
Quorum

No discussion shall be held in the General Meeting unless a lawful quorum is present.  Subject to the requirements of the applicable Law in force at the time these Articles of Association come into force, the Nasdaq Corporate Governance Rules and any other exchange on which the Company’s securities are or may become quoted or listed, and the provisions of these Articles, any two Shareholders, present by themselves or by means of a proxy, or who have delivered to the Company a Deed of Voting indicating their manner of voting, and who hold or represent at least one-third of the voting rights in the Company shall constitute a lawful quorum. A Shareholder or his proxy, who may also serve as a proxy for other Shareholders, shall be regarded as two Shareholders or more, in accordance with the number of Shareholders he is representing.

 

	
  

	
18.2.

	
Deferral of the General Meeting in the Absence of Lawful Quorum

 

In the event that a legal quorum is not present after the lapsing of 30 minutes from the time specified in the convening notice for the commencement of the meeting, the meeting may be adjourned to the same day of the following week (or the first business day thereafter) at the same time and venue, or to another time and venue, as determined by the Board of Directors in a notice to the Shareholders, and the adjourned meeting shall discuss the same issues for which the original meeting was convened. If at the adjourned meeting, a legal quorum is not present after the lapsing of 30 minutes from the time specified for the commencement of the meeting, then and in such event one or more Shareholders holding or representing in the aggregate at least 10% of the voting rights in the Company, shall be deemed to form a proper quorum, except as specified in Section 79(b) of the Companies Law.

 

  

20

  

	
  

	
 18.3.

	
The Chairman of the General Meeting

The chairman of the Board of Directors (if appointed) shall preside at each General Meeting. In the absence of the chairman, or if he fails to appear at the meeting within 15 minutes after the time fixed for the meeting, the Shareholders present at the meeting shall choose any one of the Directors of the Company as the chairman, and if there is no Director present at the meeting, one of the Shareholders shall be chosen to preside over the meeting. The chairman shall not have an additional vote or casting vote.

 

	
  

	
 18.4.

	
Adjourned Meeting

 

	
  

	
18.4.1.

	
Upon adoption of a resolution at a General Meeting at which a lawful quorum is present, the chairman may, and upon demand of the General Meeting shall, adjourn the General Meeting, the discussion or the adoption of a resolution on an issue detailed on the Agenda, from time to time and from venue to venue, as the meeting may decide (for the purpose of this Article: an “Adjourned Meeting”).

 

	
  

	
18.4.2.

	
In the event that a meeting is adjourned for more than twenty one days, a notice of the Adjourned Meeting shall be given in the same manner as the notice of the original meeting. With the exception of the aforesaid, a Shareholder shall not be entitled to receive notice of an Adjourned Meeting or of the issues which are to be discussed in the Adjourned Meeting. The Adjourned Meeting shall only discuss issues that were on the Agenda of the General Meeting which was adjourned with respect to which no resolution was adopted. The provisions of Articles 17.1, 17.2 and 17.3 of the Articles of Association shall apply to an Adjourned Meeting.

 

	
19.

	
Voting of the Shareholders

	
  

	
 19.1.

	
Resolutions

In any General Meeting, a proposed resolution shall be adopted if it receives an Ordinary Majority, or any other majority of votes set by Law or in accordance with these Articles of Association. For the avoidance of doubt, any proposed resolution requiring a Special Majority under the Companies Ordinance shall continue to require the same Special Majority even after the effective date of the Companies Law.

In the event of a tie vote, the resolution shall be deemed rejected.

 

	
  

	
 19.2.

	
Checking Majority

 

	
  

	
19.2.1.

	
The checking of the majority shall be carried out by means of a count of votes, at which each Shareholder shall be entitled to vote in each case in accordance with rights fixed for such Shares, subject to Articles 10A above and Article 44 below. A Shareholder shall be entitled to a single vote for each share he holds which is fully paid or that Calls of Payment in respect of which was fully paid.

 

  

21

  

	
  

	
19.2.2.

	
The announcement of the chairman that a resolution in the General Meeting was adopted or rejected, whether unanimously or with a specific majority, shall be regarded as prima facie evidence thereof.

	
  

	
19.3.

	
 Written Resolutions

Subject to the provisions of applicable Law, a written resolution signed by all of the Shareholders of the Company holding Shares which entitle their holders to participate in General Meetings of the Company and vote therein, or of the same class of Shares to which the resolution refers, as the case may be, shall be regarded as a valid resolution for all purposes, and as a resolution adopted at a General Meeting of the Company or at a class meeting of the relevant class of Shares, as the case may be, which was properly summoned and convened, for the purpose of adopting such a resolution.

Such a resolution could be stated in several copies of the same document, each of them signed by one Shareholder or by several Shareholders.

	
  

	
19.4.

	
 Record Date For Participation and Voting

The Record Date shall be set by the Board of Directors, or by a person or persons authorized by the Board of Directors, in accordance with applicable Law.

 

	
  

	
19.5.

	
 A Right to Participate and Vote

A Shareholder shall not be entitled to participate and vote in any General Meeting or to be counted among those present, so long as (i) he owes the Company a payment which was called for the Shares held by him, unless the allotment conditions of the Shares provide otherwise, and/or (ii) his holdings are registered in the Shareholder Register together with a notation that such holdings have been classified as Exceptional Holdings, as defined in Article 10A or Affected Shares, as defined in Article 44.

	
  

	
19.6.

	
 Personal Interest in Resolutions

A Shareholder seeking to vote with respect to a resolution which requires that the majority for its adoption include at least a specified majority of the votes of all those not having a personal interest (as defined in the Companies Law) in the resolution shall notify the registered office of the Company at least seventy two hours prior to the time of the General Meeting, whether he has a personal interest in the resolution or not, as a condition for his right to vote and be counted with respect to such resolution.

  

22

  

A Shareholder voting on a resolution, as aforesaid, by means of a Deed of Vote, may include his notice with regard to his personal interest on the Deed of Vote.

	
  

	
19.7.

	
 The Disqualification of Deeds of Vote and Deed of Authorization

Subject to the provisions of applicable Law, the corporate secretary of the Company may, in his discretion, disqualify Deeds of Vote and Deeds of Authorization and so notify the Shareholder registered in the Shareholders Register who submitted a Deed of Vote or Deeds of Authorization in the following cases:

 

	
  

	
19.7.1.

	
If there is a reasonable suspicion that they are forged;

 

	
  

	
19.7.2.

	
If there is a reasonable suspicion that they are falsified, or given with respect to Shares for which one or more Deeds of Vote or Deeds of Authorization have been given and not withdrawn; or

 

	
  

	
19.7.3.

	
If there is no note on the Deed of Vote or Deed of Authorization as to whether or not his holding in the Company or his vote require the consent of the Minister of Communications pursuant to Sections 21 and 23 to the License.

 

	
  

	
19.7.4.

	
With respect to Deeds of Vote:

 

	
  

	
(One)

	
If more than one choice is marked for the same resolution; or

	
  

	
(Two)

	
With respect to resolutions which require that the majority for their adoption includes a specified majority of the votes of those not having a personal interest in the approval of the resolution, where it was not marked whether the relevant Shareholder has a personal interest or not, as aforesaid.

Any Shareholder registered in the Shareholders Register shall be entitled to appeal on any such disqualification to the Board of Directors at least one business day prior to the relevant General Meeting.

	
  

	
19.8.

	
The Voting of a Person without Legal Capacity

A person without legal capacity is entitled to vote only by means of a trustee or a legal custodian.

	
  

	
19.9.

	
The Voting of Joint Holders of a Share

Where two or more Shareholders registered in the Shareholders Register are registered joint holders of a Share, only the first named joint holder shall vote, without taking into account the other registered joint holders of the Share. For this purpose, the first named joint holder shall be the person whose name is registered first in the Shareholder Register.

 

  

23

  

	
  

	
 19.10.

	
 Minutes of the General Meeting

The chairman of the General Meeting shall cause that the minutes of each General Meeting shall be properly maintained and shall include the following:

 

	
  

	
19.10.1.

	
The name of each Shareholder registered in the Shareholders Register present in person, by Deed of Vote or by proxy and the number of Shares held or represented by him;

 

	
  

	
19.10.2.

	
The principal issues of the discussion, all the resolutions which were adopted or rejected at the General Meeting, and if adopted - according to what majority.

 

	
20.

	
The Appointment of a Proxy

 

	
  

	
 20.1.

	
Voting by Means of a Proxy

A Shareholder registered in the Shareholder Register is entitled to appoint by deed of authorization ("Deed of Authorization") a proxy to participate and vote in his stead, whether at a certain General Meeting or generally at General Meetings of the Company, whether personally or by means of a Deed of Vote, so long as the Deed of Authorization with respect to the appointment of the proxy was delivered to the Company at least seventy two hours prior to the time of the General Meeting.

In the event that the Deed of Authorization is not limited to a certain General Meeting, then the Deed of Authorization, which was deposited prior to a certain General Meeting, shall also be good for other General Meetings thereafter. This Article 20 shall also apply to a Shareholder which is a corporation, appointing a person to participate and vote in a General Meeting in its stead. A proxy is not required to be a Shareholder of the Company.

	
  

	
 20.2.

	
The Draft of the Deed of Authorization

The Deed of Authorization shall be signed by the Shareholder and shall be in or substantially in the form specified below or any such other form acceptable to the Board of Directors of the Company. The corporate secretary, in his discretion, may accept a Deed of Authorization differing from that set forth below provided the changes are immaterial.

Without limiting the generality of the foregoing, the Company may send to the Shareholders prior to any General Meeting, a form of Deed of Authorization (approved by the corporate secretary) enabling shareholders to authorize specified persons to vote on the issues on the Agenda of such Meeting in accordance with the shareholders’ instructions.

  

24

  

The corporate secretary shall only accept either an original Deed of Authorization, or a copy of the Deed of Authorization which is certified as an original copy by a lawyer having an Israeli license or a notary.

Deed  of Authorization

 

	 	 	
Date: ________

	
To:

	
Partner Communications Company Ltd.

	 
	Attn.:	
Corporate Secretary

	 

 

Re: [Annual/Extraordinary] General Meeting of the Company

to be Held On __________________

I, the undersigned _________________, Identification No. / Registration No. _____________, of ________________, being the registered holder of ________1 Shares [Ordinary Shares having a par value of NIS 0.01, each], hereby authorize ___________, Identification No. ___________ 2 and/or ___________, Identification No. ___________ and/or ___________, Identification No. ___________ to participate and vote in my stead and on my behalf at the referenced meeting and in any adjournment of the referenced meeting of the Company / at any General Meeting of the Company, until I shall otherwise notify you.

I declare and detail in the designated space below whether I have a Personal Interest3 in the pertinent resolution on the agenda: 4

	
Item 

No.

	
Subject of the Resolution

	
Yes5

	
No

	  	
 

	  	  
	  	  	  	  
	  	  	  	  

Regarding the pertinent resolutions, why do I have a “Personal Interest” in the resolution?

 

__________________________________

1 A shareholder is entitled to give several Deeds of Authorization, each of which refers to a different quantity of Shares of the Company held by him, so long as he shall not give Deeds of Authorization with respect to an aggregate number of Shares exceeding the total number he holds.  

2 In the event that the proxy does not hold an Israeli Identification number, indicate a passport number, if any, and the name of the country which issued the passport.

3 The shareholder needs to provide details regarding the nature of the personal interest in the resolution, at the designated space after the table. “Personal Interest” is defined in Section 1 of the Companies Law as a person’s personal interest in an act or a transaction of a company, including, without limitation, the personal interest of said person's relative and of another entity in which said person or said person's relative is an interested party, excluding a personal interest that stems from the fact of holding shares in the company, including, without limitation, a personal interest of a person voting by proxy which was given by another person, even if the other person does not have a personal interest, and a person voting on behalf of a person having a personal interest will be deemed as having a personal interest, whether the voting discretion is in the voter’s hands or not.

4 If an X is not marked in either column, or if an X is marked in the "Yes" column for the pertinent item and the shareholder does not provide details, the authorization (and the vote thereunder) in respect of this item shall be disqualified.

5 The shareholder is required to provide details at the designated space below regarding the shareholder’s "Personal Interest" (with respect to the pertinent items).

 

  

25

  

I declare the following6:

	
o

	
I, the undersigned, hereby declare that either my holdings or my vote requires the consent of the Minister of Communications pursuant to Sections 21 (Transfer of Means of Control) or 23 (Prohibition of Cross-Ownership) of the Company’s General License for the Provision of Mobile Radio Telephone Services using the Cellular Method in Israel dated April 7, 1998, as amended (the “License”).

	
o

	
I, the undersigned, hereby declare that neither my holdings nor my vote, require the consent of the Minister of Communications pursuant to Sections 21 (Transfer of Means of Control) or 23 (Prohibition of Cross-Ownership) of the License.

 

-----------------------

Signature 

Date: _____________

Name (print):_______________

              Title:_______________ 

 

 

	
  

	
 20.3.

	
A vote in accordance with a Deed of Authorization shall be lawful even if prior to it, the appointer died or became incapacitated or bankrupt, or if it is a corporation – was liquidated, or if he cancelled the Deed of Authorization or transferred the Share in respect of which it was given, unless a notice in writing was received at the Office of the Company prior to the meeting with respect to the occurrence of such an event.

 

	
21.

	
Deed of Vote, Voting Via the Internet

 

	
  

	
 21.1.

	
A Shareholder may vote in a General Meeting by means of a Deed of Vote (ktav hatba’ah) on any issue for which voting by Deed of Vote is required to be offered under applicable Law and on any other issue for which the Board of Directors has approved voting by Deed of Vote, either generally or specifically.  The form of the Deed of Vote shall be set by the corporate secretary or any one so authorized by the Board of Directors and may include additional matters, as determined by the corporate secretary or such authorized person.

 

__________________________________

6 If an X is not marked in either box, or if an X is marked in both boxes, this Deed of Authorization shall be disqualified. In the event that the shareholder is an “Interested Party,” as defined in the License, voting in a different manner with respect to each part of the shareholder's Ordinary Shares, a separate Deed of Authorization should be filed for each quantity of Ordinary Shares in respect of which the shareholder intends to vote differently.

 

  

26

  

 

	
  

	
 21.2.

	
The Board of Directors may authorize Shareholder voting in a General Meeting via the Internet, subject to any applicable Law.

Chapter Four - The Board of Directors

 

	
22.

	
The Authority of the Board of Directors

 

	
  

	
 22.1.

	
The authority of the Board of Directors is as specified both in the Law and in the provisions of these Articles of Association.

 

	
  

	
 22.2.

	
Signature Authority and Powers of Attorney

 

	
  

	
22.2.1.

	
The Board of Directors shall determine the person(s) with authority to sign for and on behalf of the Company with respect to various issues. The signature of such person(s), appointed from time to time by the Board of Directors, whether generally or for a specific issue, whether alone or together with others, or together with the seal or the stamp of the Company or its printed name, shall bind the Company, subject to the terms and conditions set by the Board of Directors.

 

	
  

	
22.2.2.

	
The Board of Directors may set separate signature authorities with respect to different issues and different amounts.

 

The Board of Directors may, from time to time, authorize any person to be the representative of the Company with respect to those objectives and subject to those conditions and for that time period, as the Board of Directors deems fit. The Board of Directors may also grant any representative the authority to delegate any or all of the authorities, powers and discretion given to the Board of Directors.

 

	
  

	
 22.3.

	
The Registered Office of the Company

 

The Board of Directors shall fix the location of the registered office of the Company.

 

	
23.

	
The Appointment of Directors and the Termination of Their Office

	
  

	
 23.1.

	
The Number of Directors

 

The number of Directors in the Company shall not be less than seven (7) or more than seventeen (17).

 

  

27

  

	
  

	
 23.2.

	
The Identity of a Director

 

	
  

	
23.2.1.

	
A member of the Board of Directors may hold another position with the Company.

 

	
  

	
23.2.2.

	
Intentionally Deleted

 

	
  

	
23.2.3.

	
Without derogating from the other provisions of these Articles of Association, a member of the Board of Directors shall comply with the provisions of Article 45 below.

 

	
  

	
23.2.4.

	
The Board of Directors shall include independent and/or external Directors required to comply with the applicable requirements of any Law, the Nasdaq Corporate Governance Rules and any other investment exchange on which the securities of the Company are or may become quoted or listed. The requirements of the Companies Law applicable to an external Director (Dahatz) shall prevail over the provisions of these Articles of Association to the extent these Articles of Associations are inconsistent with the Companies Law, and shall apply to the extent these Articles of Associations are silent.

 

	
  

	
23.2.5.

	
At least 10% of the members of the Board of Directors of the Company shall be comprised of Qualified Israeli Directors.  Notwithstanding the above, if the board is comprised of up to 14 members, one Qualified Israeli Director shall be sufficient, and if the board is comprised of between 15 and 24 members, two Qualified Israeli Directors shall be sufficient.

 

	
  

	
23.2.6.

	
Notwithstanding any other provision of these Articles, a Qualified Israeli Director shall be appointed as a member of the Board of Directors, and may be removed from such office, only upon written notice to the Company’s company secretary of his or her appointment or removal by Founding Israeli Shareholders in the following manner:

 

	
  

	
 23.2.6.1.

	
In the event of receipt of such notice signed by at least two of the Founding Israeli Shareholders who are the record holders of more than 50% of Minimum Israeli Holding Shares, the person proposed thereby shall be appointed or removed (as the case will be) as the Qualified Israeli Director (without a need for a further notice).

 

  

28

  

	
  

	
23.2.6.2.

	
In the event that no notice signed by at least two of the Founding Israeli Shareholders who are the record holders of more than 50% of Minimum Israeli Holding Shares is so received, the Qualified Israeli Director shall be appointed by a notice signed by at least two of the Founding Israeli Shareholders, who hold in the aggregate the highest number of Minimum Israeli Holding Shares among the Founding Israeli Shareholders who sent such notices, as follows:

 

	
  

	
23.2.6.2.1

	
In the event that the Company so receives a notice proposing a person as a Qualified Israeli Director (the “Proposed Director”) signed by at least two of the Founding Israeli Shareholders who are not the record holders of more than 50% of Minimum Israeli Holding Shares, the Company shall send a notice (the “Company Notice”) regarding that Proposed Director to all the Founding Israeli Shareholders. Any Founding Israeli Shareholder may, within seven Business Days from receipt of the Company Notice, support the Proposed Director or propose an alternative person as the Qualified Israeli Director (an “Alternative Director”).

 

	
  

	
23.2.6.2.2

	
In the event that by the end of such seven Business Days period, the Company receives written notices supporting the Proposed Director, signed by at least two of the Founding Israeli Shareholders (for the avoidance of doubt, including in this Article 23.2 the shareholders who originally proposed such person), who are the record holders of more than 50% of Minimum Israeli Holding Shares, the Proposed Director shall be appointed as the Qualified Israeli Director (even if an Alternative Director was proposed).

 

	
  

	
23.2.6.2.3

	
In the event that by the end of such seven Business Days period, the Company receives written notices supporting the Proposed Director, signed by at least two of the Founding Israeli Shareholders, who are not the record holders of more than 50% of Minimum Israeli Holding Shares, and no Alternative Director was proposed, the Proposed Director shall be appointed as the Qualified Israeli Director.

 

  

29

  

	
  

	
23.2.6.2.4

	
In the event that by the end of such seven Business Days period, the Company receives written notices supporting the Proposed Director, signed by at least two of the Founding Israeli Shareholders, who are not the record holders of more than 50% of Minimum Israeli Holding Shares, and an Alternative Director was proposed by at least two of the Founding Israeli Shareholders, the Company shall send another notice (the “Second Company Notice”) regarding the Proposed Director and the Alternative Director(s) to all the Founding Israeli Shareholders. Any Founding Israeli Shareholder may, within seven Business Days from receipt of the Second Company Notice, support one person of the Proposed Director or the Alternative Director(s) so proposed for appointment as a Qualified Israeli Director. At the end of such (second) seven Business Days period, the person (among the persons included in the Second Company Notice), who’s appointment was supported by written notices, signed by at least two of the Founding Israeli Shareholders, who are record holders holding in the aggregate the highest number of Minimum Israeli Holding Shares among the Founding Israeli Shareholders who sent such notices (as compared to any other person so proposed) shall be appointed as the Qualified Israeli Director.

 

	
  

	
23.2.6.3.

	
Notwithstanding the foregoing in this Article 23.2.6, any Founding Israeli Shareholder (i) who is an Interested Party (as defined in the License) in a Competing MRT Operator (as defined in the License) of the Company, (ii) in which a Competing MRT Operator of the Company is an Interested Party, or (iii) an Interested Party therein is also an Interested Party in a Competing MRT Operator of the Company, shall not participate  in any appointment or replacement process of a Qualified Israeli Director, by providing notices under this Article 23.2.6 or otherwise.

 

  

30

  

	
  

	
23.3.

	
The Election of Directors and their Terms of Office

	
  

	
23.3.1.

	
The Directors shall be elected at each Annual Meeting and shall serve in office until the close of the next Annual Meeting, unless their office becomes vacant earlier in accordance with the provisions of these Articles of Association.  Each Director of the Company shall be elected by an Ordinary Majority at the Annual Meeting; provided, however, that external Directors shall be elected in accordance with applicable law and/or any relevant stock exchange rule applicable to the Company. The elected Directors shall commence their terms from the close of the Annual Meeting at which they are elected, unless a later date is stated in the resolution with respect to their appointment.  Election of Directors shall not be conducted by separate vote on each candidate, unless so determined by the Board of Directors.

 

	
  

	
23.3.2.

	
In each Annual Meeting, the Directors that were elected in the previous Annual Meeting, and thereafter, in any Extraordinary Meeting shall be deemed to have resigned from their office. A resigning Director may be reelected.

 

	
  

	
23.3.3.

	
Notwithstanding the other provisions of these Articles of Association and without derogating from Article 23.4, an Extraordinary Meeting of the Company may elect any person as a Director, to fill an office which became vacant, or to serve as an additional member to the then existing Board of Directors, or to serve as an external Director (Dahatz) or an independent Director and also in any event in which the number of the members of the Board of Directors is less than the minimum set in the Articles of Association provided that the maximum number of Directors permitted under Article 23.1 is not exceeded. Any Director elected in such manner (excluding an external Director (Dahatz) shall serve in office until the coming Annual Meeting, unless his office becomes vacant earlier in accordance with the provisions of these Articles of Association and may be reelected.

 

	
  

	
23.3.4.

	
An elected external Director (Dahatz) shall commence his term from the close of the General Meeting at which he is elected, unless a later date is stated in the resolution with respect to his appointment, and shall serve for the period in accordance with the provisions of the Companies Law, notwithstanding Article 23.3 above, unless his office becomes vacant earlier in accordance with the provisions of the Companies Law. A General Meeting may reelect an external Director (Dahatz) for additional term(s) as permitted by the Companies Law and the Companies Regulations.

 

  

31

  

	
  

	
23.4.

	
 The election of Directors by the Board of Directors

The Board of Directors shall have the right, at all times, upon approval of at least an Ordinary Majority of the Directors of the Company, to elect any person as a Director, to fill an office which became vacant, or to serve as an additional member to the then existing Board of Directors provided that the maximum number of Directors permitted under Article 23.1 is not exceeded. Any Director elected in such manner shall serve in office until the coming Annual Meeting and may be reelected.

	
  

	
23.5.

	
 Alternate Director

Any Director may, from time to time, appoint for himself an alternate Director (hereinafter: the “Alternate Director”), dismiss such Alternate Director and also appoint another Alternate Director instead of any Alternate Director, whose office becomes vacant, due to whatever cause, whether for a certain meeting or generally. Anyone who is not qualified to be appointed as a Director and also anyone serving as a Director or as an existing Alternate Director shall not serve as an Alternate Director.

 

	
  

	
23.6.

	
 Intentionally Deleted

 

	
  

	
23.7.

	
 Manner of Appointment or Dismissal of an Alternate Director

Any appointment or dismissal of Alternate Directors, shall be made by means of an advance notice in writing to the corporate secretary, at least 48 hours before the first meeting in which the Alternate Director wishes to participate, signed by the appointing or dismissing body and shall become valid upon the date indicated in the appointment or dismissal notice or upon the date of its delivery to the corporate secretary, whichever is the later, as long as the Alternate Director is qualified to serve as such. The Alternate Director should provide the Company with a declaration regarding his qualifications to serve as a director in the Company, in a form acceptable to the Company Secretary, at least 24 hours before the first meeting in which the Alternate Director wishes to participate.

	
  

	
23.8.

	
Miscellaneous Provisions with Respect to Alternate Directors

 

	
  

	
 23.8.1.

	
Intentionally Deleted

 

	
  

	
 23.8.2.

	
Intentionally Deleted

 

	
  

	
 23.8.3.

	
An Alternate Director shall have all the authority of the Director for whom he is serving as an Alternate Director, with the exception of the authority to vote in meetings at which the Director is present in person.

 

  

32

  

	
  

	
23.8.4.

	
The office of an Alternate Director shall automatically become vacant, if the office of the Director for whom he is serving as an Alternate Director becomes vacant.

	
  

	
23.9.

	
Termination of the Term of a Director

 

The term of a Director shall be terminated in any of the following cases:

 

	
  

	
23.9.1.

	
If he resigns from his office by way of a signed letter, filed with the  corporate secretary at the Company’s Office;

 

	
  

	
23.9.2.

	
If he is declared bankrupt or if he reaches a settlement with his creditors within the framework of bankruptcy procedures;

 

	
  

	
23.9.3.

	
If he is declared by an appropriate court to be incapacitated or convicted out of Israel as stated in Section 233(2) of the Companies Law;

 

	
  

	
23.9.4.

	
Upon his death;

 

	
  

	
23.9.5.

	
If he is removed from his office by way of a resolution, adopted by the General Meeting of the Company, even prior to the completion of his term of office;

 

	
  

	
23.9.6.

	
At the time of giving notice of conviction of a crime, as stated in Section 232 of the Companies Law;

 

	
  

	
23.9.7.

	
If his term is terminated by the Board of Directors in accordance with the provisions of Section 231 of the Companies Law;

 

	
  

	
23.9.8.

	
If his term is terminated by the Board of Directors in case the Board of Directors concludes that the office of such Director is in violation to the provisions of the License or any other telecommunications license granted to the Company or to any of its subsidiaries or to any other entity it controls;

 

	
  

	
23.9.9.

	
At the time of giving notice of imposition of enforcement measures pursuant to section 232A of the Companies Law; or

 

	
  

	
23.9.10.

	
At the time of giving notice pursuant to section 227A or 245A of the Companies Law.

 

  

33

  

	
  

	
23.10.

	
 The Implications on the Board of Directors of the Termination of the Term of a Director.

In the event that an office of a Director becomes vacant, the remaining Directors are entitled to continue operating, so long as their number has not decreased below the minimum number of Directors set forth in Article 23.1.

In the event that the number of Directors decreased below that minimum number, the remaining Directors shall be entitled to act solely for the convening of a General Meeting of the Company for the purpose of electing additional Directors to the Board of Directors.

	
  

	
23.11.

	
 Compensation of Members of the Board of Directors

Members of the Board of Directors who do not hold other positions in the Company and who are not external Directors shall not receive any compensation from the Company, unless such compensation is approved by the General Meeting and according to the amount determined by the General Meeting, subject to the provisions of the Law.

The compensation of the Directors may be fixed, as an all-inclusive payment or as payment for participation in meetings or in any combination thereof.

The Company may reimburse expenses incurred by a Director in connection with the performance of his office, to the extent provided in a resolution of the Board of Directors.

 

	
24.

	
Actions of Directors

 

	
  

	
 24.1.

	
 Convening Meetings of the Board of Directors

 

	
   

	
 24.1.1.

	
The chairman of the Board of Directors may convene a meeting of the Board of Directors at any time.

 

	
  

	
 24.1.2.

	
The chairman of the Board of Directors shall convene a meeting of the Board of Directors at least four times a year, in a manner allowing the Company to fulfill the provisions of the Law with respect to the publication of Financial Statements and reporting to the public.

 

	
  

	
 24.1.3.

	
The chairman of the Board of Directors shall convene a meeting of the Board of Directors on a specific issue if requested by at least two Directors or one Director, if he is an external Director, within no more than 14 days from the date of the request.

 

	
  

	
 24.1.4.

	
The chairman of the Board of Directors shall act forthwith for the convening of a meeting of the Board of Directors, within 14 days from the time that a Director in the Company has informed him of a matter related to the Company in which there is an apparent violation of the Law or a breach of proper management of the business, or from the time that the auditor of the Company has reported to him that he had become aware of material flaws in the accounting oversight of the Company.

  

34

  

	
  

	
24.1.5.

	
In the event that a notice or a report of the General Manager requires an action of the Board of Directors, the chairman of the Board of Directors shall forthwith convene a meeting of the Board of Directors, which should be held within 14 days from the date of the notice or the report.

 

	
  

	
24.2.

	
Convening of a Meeting of the Board of Directors

 

	
  

	
24.2.1.

	
Any notice with respect to a meeting of the Board of Directors may be given in writing, so long as the notice is given a reasonable time  prior to the date fixed for the meeting, unless  a majority of the members of the Board of Directors or their Alternate Directors agree on a shorter time period or, in urgent matters, that no notice will be given. A notice, as stated, shall be delivered in writing or transmitted via facsimile or E-mail or through another means of communication, to the address or facsimile number or to the E-mail address or to an address where messages can be delivered through other means of communication, as the case may be, as the Director informed the corporate secretary, upon his appointment, or by means of a written notice to the corporate secretary thereafter.

A notice, which was delivered or transmitted, as provided in this Article, shall be deemed to be personally delivered to the Director on its delivery date.

 

	
  

	
24.2.2.

	
In the event that a Director appointed an Alternate Director , the notice shall be delivered to the Alternate Director, unless the Director instructed that the notice should be delivered to him as well.

 

	
  

	
24.2.3.

	
The notice shall include the venue, date and time of the meeting of the Board of Directors, arrangements with respect to the manner of management of the meeting (in cases where telecommunications are used), the details of the issues on its agenda and any other material that the chairman of the Board of Directors requests be attached to the summoning notice with respect to the meeting.

 

	
  

	
24.3.

	
The Agenda of Meetings of Board of Directors

 

The agenda of meetings of the Board of Directors shall be determined by the chairman of the Board of Directors and shall include the following issues:

 

	
  

	
24.3.1.

	
Issues determined by the chairman of the Board of Directors.

 

  

35

  

	
  

	
24.3.2.

	
Issues for which the meeting is convened in accordance with Article 24.1 above.

 

	
  

	
24.3.3.

	
Any issue requested by a Director or by the General Manager within a reasonable time prior to the date of the meeting of the Board of Directors (taking into account the nature of the issue).

 

	
  

	
24.4.

	
Quorum

 

The quorum for meetings of the Board of Directors shall be a majority of the Directors, which must include at least one external Director.

 

	
  

	
24.5.

	
Conducting a Meeting Through Means of Communication

 

The Board of Directors may conduct a meeting of the Board of Directors through the use of any means of communications, provided all of the participating Directors can hear each other simultaneously.

 

	
  

	
24.6.

	
Voting in the Board of Directors

 

Subject to Article 44, issues presented at meetings of the Board of Directors shall be decided upon by a majority of the votes of the Directors present (or participating, in the case of a vote through a permitted means of communications) and voting, subject to the provisions of Article 23.8 above, with respect to Alternate Directors.

Each Director shall have a single vote.

 

	
  

	
24.7.

	
Written Resolutions

 

A written resolution signed by all the Directors shall be deemed as a resolution lawfully adopted at a meeting of the Board of Directors. Such a resolution may be made in several copies of the same Document, each of them signed by one Director or by several Directors. Such a resolution may be adopted by signature of only a portion of the Directors, if all of the Directors who have not signed the resolution were not entitled to participate in the discussion and to vote on such resolution in accordance with any Law whatsoever, so long as they confirm in writing that they are aware of the intention to adopt such a resolution.

 

	
  

	
24.8.

	
Resolutions Approved by Means of Communications

 

A resolution approved by use of a means of communications by the Directors shall be deemed to be a resolution lawfully adopted at a meeting of the Board of Directors, and the provisions of Article 24.6 above shall apply to the said resolution.

 

  

36

  

	
  

	
 24.9.

	
The Validity of Actions of the Directors

 

All actions taken in good faith in a meeting of the Board of Directors or by a committee of the Board of Directors or by any person acting as a Director shall be valid, even if it subsequently transpires that there was a flaw in the appointment of such a Director or person acting as such, or if any of them were disqualified, as if any such person was lawfully appointed and was qualified to serve as a Director.

 

	
  

	
 24.10.

	
Minutes of Meetings of the Board of Directors

 

The chairman of the Board of Directors shall cause that the minutes of meetings of the Board of Directors shall be properly maintained and shall include the following:

 

	
  

	
24.10.1.

	
Names of those present and participating at each meeting.

 

	
  

	
24.10.2.

	
All the resolutions and particulars of the discussion of said meetings.

 

Any such minutes signed by the chairman of the Board of Directors presiding over that meeting or by the chairman of the Board of Directors at the following meeting, shall be viewed as prima facie evidence of the issues recorded in the minutes.

 

	
25.

	
Committees of the Board of Directors

 

	
  

	
 25.1.

	
Subject to the provisions of the Companies Law, the Board of Directors may delegate its authorities or any part of them to committees, as they deem fit, and they may from time to time cancel the delegation of such an authority. Any such committee, while utilizing an authority as stated, is obligated to fulfill all of the instructions given to it from time to time by the Board of Directors.

 

	
  

	
 25.2.

	
Subject to the provisions of the Companies Law, each committee of the Board of Directors shall consist of at least two Directors, which shall include at least one external Director, and it may include members who are not Directors, with the exception of the audit committee which shall consist of at least three (3) Directors, including all of the external Directors of the Company,  and the majority of members who are independent Directors ("bilti taluy") as defined in the Companies Law.

 

	
  

	
 25.3.

	
The provisions with respect to meetings of the Board of Directors shall apply to the meetings and discussions of each committee of the Board of Directors, with the appropriate changes, provided that no other terms are set by the Board of Directors in this matter, and provided that the lawful quorum for the meetings of the committee, as stated, shall be at least a majority of the members of the committee, unless otherwise required by Law. The lawful quorum for meetings of the audit committee shall be at least a majority of the members of the committee, provided, that the majority of the present Directors are independent Directors and at least one of them is an external Director.

 

  

37

  

	
  

	
 25.4.

	
Decisions or recommendations of a committee of the Board of Directors that require approval of the Board of Directors, will be brought to the attention of the Directors a reasonable time before the Board of Directors' discussion.

 

	
25A.

	
Committee for Security Matters

 

	
  

	
 25A.1.

	
Notwithstanding any other provision in these Articles, the Board of Directors shall appoint from among its members who have security clearance and security compatibility to be determined by the General Security Service (“Directors with Clearance”) a committee to be designated the “Committee for Security Matters”.  The members of the Committee for Security Matters shall include at least four (4) Directors with Clearance including at least one external Director.  Subject to section 25A.2 below, security matters shall be considered only in the context of the Committee for Security Matters.  Any decision of, or action by the Committee for Security Matters shall have the same effect as if it had been made or taken by the Board of Directors.  The Board of Directors shall consider a security matter only if required pursuant to section 25A.2 below, and subject to the terms of that section.  For purposes of this section 25A, “security matters” shall be defined in the same manner as defined in the Bezeq Order (Determination of Essential Service Provided by Bezeq-The Israeli Telecommunications Company Ltd.), 1997, as of March 9, 2005.

 

	
  

	
 25A.2.

	
Security matters which the audit committee or Board of Directors shall be required to consider in accordance with the mandatory rules of the Companies Law or other Law applicable to the Company, shall be considered to the extent necessary only by Directors with Clearance.  Other Directors shall not be entitled to participate in meetings of the audit committee or Board of Directors dealing with security matters, or to receive information or documents related to these matters. A quorum for these meetings shall include only Directors with Clearance.

 

	
  

	
 25A.3.

	
Any Office Holder of the Company who would otherwise be required to receive information or participate in meetings by virtue of his or her position or these Articles or any Law, but who is prevented from doing so by the provisions of this Article 25A, will be released from any liability for any claim of breach of duty of care to the Company which results from her or his inability to receive information or participate in meetings, and the Company shall indemnify any such Office Holder or other officers and hold her or him harmless to the maximum extent permitted by law for any injury or damage she or he incurs as a result of the inability to receive such information or participate in such meetings.

 

	
  

	
 25A.4.

	
The shareholders at a general meeting shall not be entitled to assume, delegate, transfer or exercise any of the authorities granted to any other corporate body in the Company with respect to security matters.

 

	
                25A.5.

	(1) 	
The Minister of Communications shall be entitled to appoint an observer (the “Security Observer”) to all meetings of the Board of Directors and its committees. The Security Observer shall have the security clearance and security compatibility to be determined by the General Security Service.

 

  

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(2)

	
The Security Observer shall be an employee of the State of Israel qualified to serve as a director pursuant to Chapter C of the Government Companies Law, 1975.

 

	
  

	
(3)

	
In addition to any other obligations under Law, the Security Observer shall be bound to preserve the confidentiality of information relating to the Company, except as required to fulfill his responsibilities as an observer.  The Security Observer will not act as an observer or in any other position at a competitor of the Company, and will avoid a conflict between his position as an observer and the interests of the Company.  The Security Observer shall undertake not to serve as an observer or officer or director, and not serve in any other capacity or be employed, directly or indirectly, by any entity competing with the Company or in a position of conflict of interest with the Company during the period of his service as the Security Observer and for two years after termination of such period.

 

	
  

	
(4)

	
Notices of meetings of the Board of Directors and its committees, including of the Committee for Security Matters, shall be delivered to the Security Observer, and he shall be entitled to participate in each such meeting.

 

	
  

	
(5)

	
The Security Observer shall have the same right to obtain information from the Company as that of a Director.  If the Company believes that specific information requested is commercially sensitive and not required by the Security Observer for fulfillment of his duties, the Company may delay delivery of the information upon notice to the Security Observer.  If the Security Observer still believes the information is needed for his duties, the matter shall be brought for decision to the head of the General Security Service.

 

	
  

	
(6)

	
If the Security Observer believes that the Company has made a decision, or is about to make a decision, in a security matter, which conflicts with a provision of the License or section 13 of the Communications Law (Telecommunications and Broadcasting), 1982 or section 11 of the General Security Service Law, 2002, he shall promptly notify the Company in writing.  Said notice shall be delivered to the chairman of the Board of Directors and chairman of the Committee for Security Matters and shall provide an appropriate defined period of time, in light of the circumstances, in which the Company shall be required to correct the violation or change the decision, to the extent possible.

	
25B.

	
Approval of Certain Related Party Transactions

 

A transaction of the type described in Section 270(1) of the Companies Law; i.e., a transaction with an Office Holder or a transaction in which an Office Holder has a personal interest (as specified in Section 270(1)), provided that such transactions are in the Company's ordinary course of business, are on market terms and are not likely to substantially influence the profitability of the Company, its assets or its liabilities, may be approved by the audit committee, without the need for Board of Director's approval, or by the Board of Directors, subject to any applicable Law and any relevant stock exchange rule applicable to the Company.

  

39

  

	
26.

	
Chairman of the Board of Directors

 

	
  

	
 26.1.

	
Appointment

 

	
  

	
26.1.1.

	
The Board of Directors shall choose one of its members to serve as the chairman of the Board of Directors, and shall set in the appointing resolution the term for his service.

 

	
  

	
26.1.2.

	
The chairman of the Board of Directors shall serve until the earlier of (i) the date or time provided in the appointing resolution; (ii) election of a substitute chairman by the Board of Directors; (iii) resignation of the chairman from his position as chairman; or (iv) cessation of the chairman’s service as a Director.

 

	
  

	
26.1.3.

	
In the event that the chairman of the Board of Directors ceases to serve as chairman, the Board of Directors in its first meeting held thereafter shall choose one of its members to serve as a new chairman.

 

	
  

	
26.1.4.

	
In the event that the chairman of the Board of Directors is absent from a meeting, the Board of Directors shall choose one of the Directors present to preside at the meeting.

 

	
  

	
26.2.

	
Authority

 

	
  

	
26.2.1.

	
The chairman of the Board of Directors shall preside over meetings of the Board of Directors.

 

	
  

	
26.2.2.

	
In the event of a deadlock vote, the chairman of the Board of Directors shall not have an additional or casting vote.

 

	
  

	
26.2.3.

	
The chairman of the Board of Directors is entitled,  at all times, at his initiative or pursuant to a resolution of the Board of Directors, to require reports from the General Manager in matters pertaining to the business affairs of the Company.

 

	
  

	
26.3.

	
Reservations with Regard to Actions of the Chairman of the Board of Directors

 

	
  

	
26.3.1.

	
The chairman of the Board of Directors or his Relative shall not serve as the General Manager of the Company, unless he is appointed in accordance with the provisions of Article 27.2 below.

 

	
  

	
26.3.2.

	
The chairman of the Board of Directors shall not serve as a member of the audit committee.

 

  

40

  

	
  

	
26.3.3.

	
A subordinate to the General Manager, directly or indirectly, shall not serve as chairman of the Board of Directors. A director in a company controlled by the Company may serve as chairman of the Board of Directors.

 

	
  

	
26.3.4.

	
Powers of the General Manager shall not be granted to the chairman of the Board of Directors or his Relative, except in accordance with the provisions of Article 27.2 below. The chairman of the Board of Directors shall not be granted powers granted to those who are subordinated to the General Manager, directly or indirectly.

 

	
  

	
26.3.5.

	
The chairman of the Board of Directors shall not serve in another position in the Company or in a company controlled by it, but may serve as chairman of the Board of Directors or a director of a company controlled by the Company.

 

Chapter Five - Office Holders who are not Directors and the Auditor

 

	
27.

	
The General Manager

 

	
  

	
 27.1.

	
The Appointment and Dismissal of the General Manager

 

	
  

	
27.1.1.

	
The Board of Directors shall appoint a General Manager for a fixed period of time or for an indefinite period of time. The Board of Directors may appoint more than one General Manager.

 

	
  

	
27.1.2.

	
The compensation and employment conditions of the General Manager shall require the prior approval of the compensation committee, the Board of Directors and the General Meeting of the Company, unless otherwise permitted by the Companies Law.

 

	
  

	
27.1.3.

	
The Board of Directors may from time to time remove the General Manager from his office or dismiss the General Manager and appoint another or others in his stead.

 

	
  

	
 27.2.

	
The Chairman of the Board of Directors as the General Manager

 

	
  

	
27.2.1.

	
The General Meeting of the Company is entitled to authorize the chairman of the Board of Directors or his Relative to fulfill the position of the General Manager or to exercise his authority and to authorize the General Manager or his Relative to fulfill the position of the chairman of the Board of Directors or to exercise his authority, so long as one of the following exists:

 

The majority of the votes in the General Meeting adopting such a resolution include at least two thirds of the votes of Shareholders present and entitled to vote at the meeting who are not either the Controlling Parties in the Company as defined in the Companies Law or anyone having a Personal Interest (as defined in the Companies Law) in the approval of the resolution, who participate in the vote. “Abstain” votes shall not be taken into account in the counting of the votes of the Shareholders.

 

  

41

  

The total opposition votes from the Shareholders referred to in Article 27.2.1.1 above do not exceed two percent of the entire voting rights in the Company.

 

	
  

	
27.2.2.

	
The validity of a resolution provided in Article 27.2.1 above is restricted to periods, each not exceeding three years, from the date of the adoption of the resolution by the General Meeting. In the event that no period was set in the resolution, the period shall be deemed to be for three years. Prior to the completion of the three year period, as aforesaid, and even after the end of this period, the General Meeting is entitled to extend the validity of such resolution.

 

	
  

	
27.2.3.

	
A resolution, as stated, may relate to the authority of the chairman of the Board of Directors, generally, or to a specific person who is serving as the chairman of the Board of Directors.

 

	
  

	
 27.3.

	
The Authority of the General Manager and Subordination to the Board of Directors

 

	
  

	
27.3.1.

	
The General Manager is responsible for the day-to-day management of the affairs of the Company within the framework of the policy set by the Board of Directors and subject to its instructions.

The General Manager shall have all administrative and operational authority which were not conferred by Law or pursuant to these Articles of Association to any other corporate organ of the Company, and he shall be under the supervision of the Board of Directors and subject to its instructions.

The General Manager shall appoint and dismiss Office Holders of the Company, with the exception of Directors, and he shall also determine the terms of their employment subject to the prior approval of the compensation committee and the Board of Directors, unless otherwise permitted or required by the Companies Law and provided, however, that the appointment and dismissal of senior managers of the Company shall require consultation with and approval by the Board of Directors.

  

42

  

 

	
  

	
27.3.2.

	
The Board of Directors may instruct the General Manager on how to act with respect to a certain issue. If the General Manager fails to fulfill the instruction, the Board of Directors may exercise the required authority in order to act in the place of the General Manager.

 

The Board of Directors may assume the authority granted to the General Manager, either with respect to a certain issue or for a certain period of time.

 

	
  

	
27.3.3.

	
In the event that the General Manager is unable to exercise his authority, the Board of Directors may exercise such authority in his stead, or authorize another to exercise such authority.

	
  

	
 27.4.

	
Reporting Duties of the General Manager

 

The General Manager is obligated to notify the chairman of the Board of Directors of any exceptional matter which is material to the Company, or of any material deviation by the Company from the policy set by the Board of Directors. In the event that the Company shall be without a chairman of the Board of Directors for whatever reason the General Manager shall notify all the members of the Board of Directors, as aforesaid. The General Manager shall deliver to the Board of Directors reports on issues, at such time and in such scope, as is determined by the Board of Directors.

 

	
  

	
 27.5.

	
Delegating Authority of the General Manager

 

The General Manager, upon approval of the Board of Directors, may delegate to his subordinates any of his authority. However, such delegation of authority shall not release the General Manager from his liability.

 

	
28.

	
The Corporate Secretary, Internal Controller and Other Office Holders of the Company

 

	
  

	
 28.1.

	
The Corporate Secretary

 

	
  

	
28.1.1.

	
The Board of Directors is entitled to appoint a corporate secretary on terms it deems fit, joint secretaries, sub–secretaries and to determine the areas of their functions and authorities.

 

	
  

	
28.1.2.

	
In the event that no corporate secretary has been appointed, the General Manager or anyone authorized by him shall fulfill the functions assigned to the corporate secretary, in accordance with any Law, to these Articles of Association and the resolutions of the Board of Directors.

 

  

43

  

	
  

	
28.1.3.

	
The corporate secretary shall be responsible for all documents which are kept at the Office, as stated in Section 124 of the Companies Law, and he shall manage all the registries maintained by the Company in accordance with the Law or Companies Law.

 

	
  

	
 28.2.

	
Internal Controller

 

	
  

	
28.2.1.

	
The internal controller of the Company shall report to the chairman of the Board of Directors.

 

	
  

	
28.2.2.

	
The internal controller shall file with the Board of Directors a proposal for an annual or other periodic work plan, which shall be approved by the Board of Directors, subject to any changes it deems fit.

	
  

	
 28.3.

	
Other Office Holders of the Company

The Board of Directors may decide that in addition to the General Manager and the corporate secretary, other Office Holders may be appointed, whether generally or for a specific issue. In such event, the Board of Directors shall appoint the Office Holder, define his position and authority, and set his compensation and terms of employment, following approval of the compensation committee unless otherwise permitted  or required by the Companies Law.

The Board of Directors is entitled, subject to the Companies Law, to authorize the General Manager to fulfill any or all of its authorities, as stated.

 

	
29.

	
The Auditor

 

	
  

	
 29.1.

	
The Shareholders at the Annual Meeting shall appoint an auditor for a period until the close of the following Annual Meeting. The Annual Meeting may appoint an auditor for a period not to extend beyond the close of the third Annual Meeting following the Annual Meeting in which he was appointed. In the event that the auditor was appointed for said period, the Annual Meeting shall not address the appointment of the auditor during said period, unless a resolution is adopted with respect to the termination of his service.

 

	
   

	
 29.2.

	
The General Meeting is entitled at all times to terminate the service of the auditor or to decide not to renew it.

 

	
  

	
 29.3.

	
The Board of Directors shall determine the compensation of the auditor of the Company and it shall report in that respect to the Annual Meeting of the Company.

 

  

44

  

	
  

	
 29.4.

	
The Board of Directors shall set the compensation of the auditor for additional services which are not regarded as oversight activities, and it shall report in this respect at the Annual Meeting of the Company.

Chapter Six - The Share Capital of the Company and its Distribution

 

	
30.

	
Permitted Distributions

	
  

	
 30.1.

	
Definitions

In this Chapter, the following terms shall be construed, in accordance with their definition in Sections 1, 301 and 302 of the Companies Law: “distribution”, “acquisition”, “profits”, “profit test”, “adjusted financial statements” and  “balances”.

	
  

	
 30.2.

	
Distribution of Profits

The Company shall not make any distribution other than from its profits, provided that the Company shall not make any distribution if there is a reasonable concern that such distribution shall preclude the Company from having the ability to meet its present and anticipated liabilities, as they become due. Notwithstanding the aforesaid, the Company, with the approval of an authorized court, is entitled to make a distribution which fails to meet the profit test.

	
  

	
 30.3.

	
Allotment for a Consideration Below the Par Value

In the event the Board of Directors decides to allot Shares having a par value, for consideration which is less than their par value, including Bonus Shares, the Company shall convert into share capital from its profits, premium on its Shares, or any other source, included in its shareholders equity, as stated in its most recent Financial Statements, an amount equal to the difference between the par value and the consideration.

Even if the aforesaid is not done, with the approval of an authorized court, the Company shall be entitled to make an allotment of Shares, for consideration which is less than their par value.

 

	
31.

	
Dividends and Bonus Shares

 

	
  

	
 31.1.

	
Right to Dividends or Bonus Shares

 

	
  

	
31.1.1.

	
A Shareholder of the Company shall have the right to receive dividends or Bonus Shares, if the Company so decides in accordance with Article 31.2 below, consistent with the rights attaching to such Shares.

 

  

45

  

	
  

	
31.1.2.

	
Dividends or Bonus Shares shall be distributed or allotted to those who are registered in the Shareholder Register on the date of the resolution approving the distribution or allotment or upon a later date, if another date is determined for this purpose in same resolution (hereinafter: the “Determining Date”).

 

	
  

	
31.1.3.

	
In the event that the share capital of the Company consists of Shares having various par values, dividends or Bonus Shares shall be distributed in proportion to the par value of each Share.

 

	
  

	
31.1.4.

	
Subject to special rights conferred upon Shares in accordance with the conditions of their allotment, profits of the Company which the Company decides to distribute as a dividend or as Bonus Shares shall be paid in proportion to the amount which was paid or credited on the account of the par value of the Shares, held by the Shareholder.

 

	
  

	
31.1.5.

	
In the event that it was not otherwise determined in the conditions applicable to the allotment of the Shares or in a resolution of the General Meeting, all the dividends or Bonus Shares with respect to Shares, which were not fully paid within the period in which the dividends or Bonus Shares are paid, shall be paid in proportion to the amounts which were actually paid or credited as paid on the par value of the Shares during any part of said period (pro rata temporis).

	
  

	
31.2.

	
Resolution of the Company with Respect to a Dividend or Bonus Shares

 

	
  

	
31.2.1.

	
The Authority to Distribute Dividends or Bonus Shares

The resolution of the Company on the distribution of a dividend or Bonus Shares to be distributed to the Shareholders according to their respective rights and benefits, and on their time of payment, shall be made by the Board of Directors.

 

	
  

	
31.2.2.

	
Funds

The Board of Directors may, in its discretion, allocate to special funds any amount whatsoever from the profits of the Company or from the revaluation of its assets or its relative share in the revaluation of assets of “branch companies,” and also to determine the designation of these funds.

  

46

  

	
  

	
31.3.

	
The Payment of Dividends

 

	
  

	
31.3.1.

	
Manner of Payment

Unless otherwise provided in the resolution with respect to the distribution of the dividend, the Company may pay any dividend with the withholding of any tax required by Law, by way of a cheque to the order of the beneficiary alone, which should be sent by means of registered mail to the registered address of the Shareholder entitled thereto, or by way of a bank transfer. Any cheque, as stated, shall be drawn up to the order of the person to whom it is intended.

In the event of registered joint holders, the cheque shall be passed to the same Shareholder whose name is registered first in the Shareholder Register with respect to the joint holding.

The sending of a cheque to a person whose name is registered in the Shareholder Register as the holder of the Share upon the Determining Date or, in the case of joint holders, to any of the joint holders, shall serve as evidence with respect to all the payments made in connection with same Shares.

The Company may decide that a cheque under a certain amount shall not be sent and the amount of the dividend which was supposed to be paid shall be deemed to be an unclaimed dividend.

 

	
  

	
31.3.2.

	
An Unclaimed Dividend

The Board of Directors is entitled to invest the amount of any unclaimed dividend for one year after it was declared or to utilize it in any other manner to the benefit of the Company until it is claimed. The Company shall not be obligated to pay interest or Linkage on an unclaimed dividend.

 

	
  

	
31.3.3.

	
Specific Dividend

In the event the Company declares a dividend, as provided in Article 31.2.1 above, it may decide that same dividend shall be paid, entirely or partially, by way of the distribution of certain assets, including fully paid shares or bonds of any other company or in any combination of these assets.

 

  

47

  

	
  

	
31.4.

	
Manner of Capitalization of Profits and the Distribution of Bonus Shares

 

	
  

	
31.4.1.

	
Subject to the provisions of Article 30 above in the event of a capitalization of profits and distribution of Bonus Shares, the undistributed profits of the Company, or premium on Shares, or funds derived from the revaluation of the assets of the Company, or funds derived on the basis of equity from the profits of “branch companies,” or from the revaluation of assets of “branch companies” and capital redemption funds shall be capitalized and distributed among the Shareholders entitled thereto, as per the provisions of Article 31.1 above, to be held by the shareholders as capital, and that this capital, entirely or partially, shall be used on behalf of same Shareholders as full payment, whether according to the par value of the Shares or together with premium decided upon, for Shares to be distributed accordingly, and that this distribution or payment shall be received by same Shareholders as full consideration for their portion of the benefit in the capitalized amount, as determined by the Board of Directors.

The provisions of this chapter six shall also apply to the distribution of bonds.

 

	
  

	
31.4.2.

	
The Company, in the resolution with respect to the distribution of Bonus Shares, is entitled in accordance with the recommendation of the Board of Directors, to decide that the Company shall transfer to a special fund, designated for the future distribution of Bonus Shares, an amount the capitalization of which shall be sufficient in order to allot to anyone having at such time a right to acquire Shares of the Company (including a right which can be exercised only upon a later date), Bonus Shares at the par value which would have been due to him had he exercised the right to acquire the Shares shortly before the Determining Date, at the price of the right in effect at such time. In the event that after the Determining Date, the holder of said right shall exercise his right to acquire the Shares or any part of them, the Board of Directors shall allot to him fully paid Bonus Shares at such  par value and of such class, which would have been due to him had he exercised shortly before the Determining Date the right to acquire those Shares he actually acquired, by way of an appropriate capitalization made by the Board of Directors out of the special fund, as aforesaid. For the purpose of the determination of the par value of the Bonus Shares which are to be distributed, any amount transferred to the special fund, with respect to a previous distribution of previous Bonus Shares shall be viewed as if it had already been capitalized and that Shares entitling the holders to the right to acquire Shares of the Company were already allotted as Bonus Shares.

 

	
  

	
31.4.3.

	
Upon the distribution of Bonus Shares, each Shareholder of the Company shall receive Shares of a uniform class or of the class which confers on its holder the right to receive the Bonus Shares, as determined by the Board of Directors.

 

  

48

  

	
  

	
31.4.4.

	
For purposes of carrying out any resolution pursuant to the provisions of Article 30, the Board of Directors may settle, as it deems fit, any difficulty arising with regard to the distribution of Bonus Shares, and, in particular, to issue certificates for fractions of Shares and sell such fractions of Shares, in order to pay their consideration to those entitled thereto, and also to set the value for the distribution of certain assets and to decide that cash payments shall be paid to the Shareholders on the basis of the value determined in such a way, or that fractions whose value is less than NIS 0.01 shall not be taken into account, pursuant to the adjustment of the rights of all parties. The Board of Directors may pay cash or convey these certain assets to trustees in trust in favor of those people who are entitled to a dividend or to a capitalized fund, as the Board of Directors shall deem beneficial.

 

	
32.

	
Acquisition of Shares

 

	
  

	
 32.1.

	
The Company is entitled to acquire or to finance an acquisition, directly or indirectly, of Shares of the Company or securities convertible into Shares of the Company or which could be exercised into Shares of the Company, including incurring an obligation to take any of these actions, subject to the fulfillment of the conditions of a permissible distribution, as stated in Article 30 above.

 

	
  

	
 32.2.

	
In the event that the Company acquired any of its Shares, such a Share shall become a dormant Share, and shall not confer any rights, so long as it is owned by the Company.

	
  

	
 32.3.

	
A subsidiary or another company under the control of the Company is entitled to acquire Shares of the Company or securities convertible into Shares of the Company or which can be exercised into Shares of the Company, including an obligation to take any of these actions, to the same extent the Company may make a distribution, so long as the board of directors of the subsidiary or the managers of the acquiring company have determined that had the acquisition of the Shares or convertible securities been carried out by the Company it would have been regarded as a permissible distribution, as specified in Article 30 above. Notwithstanding the foregoing, an acquisition by a subsidiary or by another company under the control of the Company, which is not fully-owned by the Company, will be considered a distribution of an amount equal to the product of the amount acquired multiplied by the percentage of the rights in the capital of the subsidiary or in the capital of said company which is held by the Company.

 

	
  

	
 32.4.

	
In the event that a Share of the Company is acquired by a subsidiary or by a corporation in the control of the Company, the Share shall not confer any voting rights, for so long as said Share is held by the subsidiary or by said controlled corporation.

  

49

  

Chapter Seven - Insurance, Indemnification and Release of Office Holders

 

	
33.

	
Insurance of Office Holders

 

	
  

	
 33.1.

	
The Company may insure the liability of an Office Holder in the Company, to the fullest extent permitted by Law.

 

	
  

	
 33.2.

	
Without derogating from the aforesaid, the Company may enter into an insurance contract and/or arrange and pay all premiums in respect of an insurance contract, for the insurance of the liability of an Office Holder in the Company, resulting directly or indirectly from an action or inaction by him (or together with other Office Holders or other officers of the Company) in his capacity as an Office Holder in the Company, for any of the following:

 

	
  

	
33.2.1.

	
The breach of the duty of care toward the Company or toward any other person;

 

	
  

	
33.2.2.

	
The breach of the duty of loyalty toward the Company provided the Office Holder has acted in good faith and had reasonable grounds to assume that the action would not harm the Company; and

 

	
  

	
33.2.3.

	
A financial liability imposed on him in favor of another person.

 

	
  

	
33.2.4.

	
Any other matter in respect of which it is permitted or will be permitted under Law to insure the liability of an Office Holder in the Company.

	
  

	
33.2.5

	
A payment which the Office Holder is obligated to pay to an injured party as set forth in Section 52.54(a)(1)(a) of the Securities Law and expenses that the Office Holder incurred in connection with a proceeding under Chapters H3, H4 or I1 of the Securities Law, or under Chapter 4 of Part 9 of the Companies Law, in connection with any affairs, including reasonable legal expenses, which term includes attorney fees.

	
34.

	
Indemnification of Office Holders

 

	
  

	
 34.1.

	
The Company may indemnify an Office Holder in the Company to the fullest extent permitted by Law.  Without derogating from the aforesaid, the Company may indemnify an Office Holder in the Company as specified in Articles 34.2 through 34.4 below.

  

50

  

	
  

	
 34.2.

	
Indemnification

The Company may indemnify an Office Holder in the Company for liability or expense he incurs or that is imposed on him in consequence with an action or inaction by him (or together with other Office Holders or other officers of the Company) in his capacity as an Office Holder in the Company, as follows:

 

	
  

	
34.2.1.

	
Any financial liability he incurs or is imposed on him in favor of another person in accordance with a judgment, including a judgment given in a settlement or a judgment of an arbitrator, approved by an authorized court.

 

	
  

	
34.2.2.

	
Reasonable legal expenses, including attorney fees, incurred by the Office Holder or which he was ordered to pay by an authorized court, in the context of a proceeding filed against him by the Company or on its behalf or by a third party, or in a criminal proceeding in which he was acquitted, or in a criminal proceeding in which he was convicted of an offense which does not require criminal intent.

 

	
  

	
34.2.3.

	
Reasonable legal expenses, including attorney fees, incurred by the Office Holder due to such investigation or proceeding conducted against him by an authority authorized to conduct an investigation or proceeding, and which was ended without filing an indictment against him and without the imposition of  a financial liability as a substitute for a criminal proceeding, or that was ended without filing an indictment against him but for which he was subject to a financial liability as a substitute for a criminal proceeding relating to an offense which does not require criminal intent, within the meaning of the relevant terms under the Law, or in connection with a financial sanction ("itzum caspi").

 

	
  

	
34.2.4.

	
Any other liability or expense in respect of which it is permitted or will be permitted under Law to indemnify an Office Holder in the Company.

 

	
  

	
34.2.5.

	
A payment which the Office Holder is obligated to pay to an injured party as set forth in Section 52.54(a)(1)(a) of the Securities Law and expenses that the Office Holder incurred in connection with a proceeding under Chapters H3, H4 or I1 of the Securities Law, or under Chapter 4 of Part 9 of the Companies Law, in connection with any affairs, including reasonable legal expenses, which term includes attorney fees.

  

51

  

	
  

	
 34.3.

	
Indemnification in Advance

 

The Company may undertake in advance to indemnify an Office Holder of the Company in respect of the following matters:

 

	
  

	
34.3.1.

	
Matters as detailed in Article 34.2.1; provided, however, that the undertaking to indemnify is restricted to events which in the opinion of the Board of Directors are anticipated in light of the Company’s activities at the time of granting the obligation to indemnify, and is limited to a sum or measurement determined by the Board of Directors to be reasonable in the circumstances. The aggregate indemnification amount payable by the Company to all indemnified persons, pursuant to all letters of indemnification issued to them by the Company on or after October 17, 2013, which indemnification letters include a maximum indemnity amount substantially similar to the maximum indemnity amount in this article 34.3.1, in respect of any occurrence of an event specified in the appendix to the pertinent indemnification letter, shall not exceed 25% of shareholders’ equity (according to the latest reviewed or audited financial statements approved by the Company’s Board of Directors prior to approval of the indemnification payment). The undertaking to indemnify shall specify the events that, in the opinion of the Board of Directors are expected in light of the Company’s actual activity at the time of grant of the indemnification and the sum or measurement which the Board of Directors determined to be reasonable under the circumstances.

 

	
  

	
34.3.2.

	
Matters as detailed in Article 34.2.2 to 34.2.5 (inclusive).

 

	
  

	
34.3.3.

	
Any other matter permitted by Law.

	
  

	
 34.4.

	
Indemnification after the Fact

 

The Company may indemnify an Office Holder in the Company for any and all kinds of events, retrospectively, subject to any applicable Law.

 

	
35.

	
Release of Office Holders

 

	
  

	
 35.1.

	
The Company shall not release an Office Holder from his liability for a breach of the duty of care toward the Company, other than in accordance with the provisions of this Article.

 

	
  

	
 35.2.

	
The Company may release an Office Holder in the Company, in advance, from his liability, entirely or partially, for damage in consequence of the breach of the duty of care toward the Company.

 

	
  

	
 35.3.

	
Notwithstanding the foregoing, the Company may not release an Office Holder from his liability, resulting from any of the following events:

 

	
  

	
35.3.1.

	
The breach of the duty of loyalty toward the Company;

 

  

52

  

	
  

	
35.3.2.

	
The breach of the duty of care made intentionally or recklessly (“pezizut”), other than if made only by negligence;

 

	
  

	
35.3.3.

	
An act intended to unlawfully yield a personal profit;

 

	
  

	
35.3.4.

	
A fine ("knass"), a civil fine ("knass ezrahi"), a financial sanction ("itzum caspi") or a penalty ("kofer") imposed on him; and

 

	
  

	
35.3.5.

	
The breach of the duty of care in a Distribution ("haluka").

 

	
35A.

	
Certain Legal Amendments

Any amendment to the Companies Law, the Securities Law or any other applicable law adversely affecting the right of any Office Holder to be indemnified, insured or released pursuant to Articles 33 to Article 35 (including Article 35), shall be prospective in effect, and shall not affect the Company’s obligation or ability to indemnify, insure or release an Office Holder for any act or omission occurring prior to such amendment, unless otherwise expressly provided under the Companies Law, the Securities Law or such other applicable law.

Chapter Eight - Liquidation and Reorganization of the Company

 

	
36.

	
Liquidation

 

	
  

	
 36.1.

	
In the event that the Company is liquidated, whether voluntarily or otherwise, the liquidator, upon the approval of an Extraordinary Meeting, may make a distribution in kind to the Shareholders of all or part of the property of the Company, and he may with a similar approval of the General Meeting, deposit any part of the property of the Company with trustees in favor of the Shareholders, as the liquidator with the aforementioned approval, deems fit.

 

	
  

	
 36.2.

	
The Shares of the Company shall confer equal rights among them with respect to capital amounts which were paid or which were credited as paid on the par value of the Shares, in all matters pertaining to the refund of the capital and to the participation in the distribution of the balance of the assets of the Company in liquidation.

 

	
37.

	
Reorganization

 

	
  

	
 37.1.

	
Upon the sale of the property of the Company, the Board of Directors or the liquidators (in case of a liquidation), if they are so authorized by a resolution of the General Meeting of the Company adopted with a Special Majority, may receive fully or partially paid up Shares, bonds or securities of another company, either Israeli or foreign, whether incorporated or which is about to incorporated for the purpose of acquiring property of the Company, or any part thereof, and the Directors (if the profits of the Company allow for it) or the liquidators (in case of a liquidation) may distribute among the Shareholders the Shares or the securities mentioned above or any other property of the Company without selling them or depositing them with trustees on behalf of the Shareholders.

 

  

53

  

	
  

	
 37.2.

	
The General Meeting may, pursuant to a resolution adopted by a Special Majority, decide on the valuation of the securities or of the aforementioned property at a  price and in the same manner as it deems appropriate and all the Shareholders shall be obligated to accept any valuation or distribution, authorized in accordance with the foregoing and to waive their rights in this matter, unless the Company is about to liquidate or is in a liquidation process, of same lawful rights (if any) which according to the provisions of the Law should not be altered or denied.

Chapter Nine - Miscellaneous

 

	
38.

	
Notices

 

	
  

	
 38.1.

	
A notice or other document may be sent by the Company to any Shareholder appearing in the Shareholder Register of the Company either personally or by way of sending by registered mail, at the registered address of the Shareholder in the Shareholder Register, or at such address as such Shareholder shall have provided in writing to the Company as the address for the delivery of notices.

 

	
  

	
 38.2.

	
All the notices to be given to Shareholders registered in the Shareholders Register, shall, in respect of Shares held jointly, be given to the person whose name is mentioned first in the Shareholder Register, and any notice given in such a manner shall be viewed as a sufficient notice to all such joint Shareholders.

 

	
  

	
 38.3.

	
Any Shareholder registered in the Shareholder Register, with an address, whether in Israel or overseas, is entitled to receive, at such address, any notice he is entitled to receive in accordance with the Articles of Association or according to the provisions of the Law. Unless otherwise stated above, no person who is not registered in the Shareholder Register shall be entitled to receive any notices from the Company.

 

	
  

	
 38.4.

	
Any notice or other document which is sent to a Shareholder in accordance with these Articles of Association shall be considered lawfully sent with respect to all the Shares held by him (whether with respect to Shares held by him alone or held by him jointly with others) even if same Shareholder had died by that time or had become bankrupt or had received an order for its liquidation or if a trustee or a liquidator or a receiver was appointed with respect to his Shares (whether the Company was aware of it or not) until another person is registered in the Shareholder Register in his stead, as the holder thereof. The sending of a notice or other document, as aforesaid, shall be viewed as a sufficient sending to any person having a right in these Shares.

 

	
  

	
 38.5.

	
Any notice or other document which was sent by the Company via registered mail, to an address in Israel, shall be considered sent within 72 hours from its posting at the post office. In order to prove sufficient sending, it is enough to show that the letter containing the notice or the document was addressed to the correct address and was posted at the post office.

 

  

54

  

	
  

	
 38.6.

	
Any accidental omission with respect to the giving of a notice of a General Meeting to any Shareholder or the non-receipt of a notice with respect to a meeting or any other notice on the part of whatever Shareholder shall not cause the cancellation of a resolution taken at that meeting, or the cancellation of processes based on such notice.

 

	
  

	
 38.7.

	
Any Shareholder and any member of the Board of Directors may waive his right to receive notices or waive his right to receive notices during a specific time period or in general and he may consent that a General Meeting of the Company or a meeting of the Board of Directors, as the case may be, shall be convened and held notwithstanding the fact that he did not receive a notice with respect to it, or notwithstanding the fact that the notice was not received by him within the required time, in each case subject to the provisions of any Law prohibiting any such waiver or consent.

Chapter 10 - Intentionally Deleted

 

	
39.

	
Intentionally Deleted

 

	
40.

	
Intentionally Deleted

 

	
41.

	
Intentionally Deleted

 

	
42.

	
Intentionally Deleted

Chapter 11- Compliance with the License /

Limitations on Ownership and Control

 

	
43.

	
Compliance

The Shareholders and the Company shall at all times comply with the terms of the License and of any other telecommunications license held by the Company. Nothing herein shall be construed as requiring or permitting the performance of any acts which are inconsistent with the terms of the License and of any other telecommunications license held by the Company. If any article of these Articles shall be found to be inconsistent with the terms of the License and of any other telecommunications license held by the Company, the provisions of such Article shall be null and void, but the validity, legality or enforceability of provisions of the other Articles shall not be affected thereby.

 

	
44.

	
Limitations on Ownership and Control

 

	
  

	
 44.1.

	
This Article is to ensure that so long as and to the extent that any Operating Right is conditional on or subject to any conditions or restrictions relating to ownership or control over the Company imposed by the Ministry, the Company is so owned and controlled.  This Article shall not affect or influence in any way the interpretation or application of Article 10A.

  

55

  

	
  

	
 44.2.

	
In this Article:

“Affected Share” means any Share determined to be dealt with as such pursuant to Article 44.4;

“Affected Share Notice” means a notice in writing served in accordance with Article 44.5;

“Depositary” means a custodian or other person appointed under contractual arrangements with the Company (or a nominee for such custodian or other person) whereby such custodian or other person holds or is interested in Shares and which issues securities evidencing the right to receive such Shares;

“Depositary Receipts” means receipts or similar documents of title issued by or on behalf of a Depositary;

“Depositary Shares” means the Shares held by a Depositary or in which a Depositary is interested in its capacity as a Depositary;

“Intervening Act” means the refusal, withholding, suspension or revocation of any Operating Right applied for, granted to or enjoyed by the Company, or the imposition of any conditions or limitations upon any such Operating Right which materially inhibit the exercise thereof, in either case by any state, authority or person (including the Ministry) by reason of the activities of persons holding Shares in and/or controlling the Company;

“Ministry” means the Ministry of Communications and/or Minister of Communications;

“Operating Right” means all or any part of any authority, permission, licence or privilege applied for, granted to or enjoyed by the Company, including the Licence, for the establishment, subsistence, maintenance and operation of a mobile radio telephone system using the cellular method and the provision of mobile radio telephone services to the public in Israel;

“Permitted Maximum” means the maximum aggregate permitted number of Relevant Shares specified by the Board of Directors in accordance with the terms of the Licence, any other requirements of the Ministry and any relevant requirements of Law;

“Relevant Person” means:

 

	
  

	
 (a)

	
any person who, without the approval of the Ministry, acquires, directly or indirectly, any Means of Control (as defined in the Licence) in breach of Section 21 of the Licence other than a person who falls within Article 10A; or

 

  

56

  

	
  

	
 (b)

	
any Interested Party (as defined in the Licence) who, or who has an Office Holder (as defined in the Licence) who, is in breach of Sections 23 or 24 of the License other than a person who falls within Article 10A;

“Relevant Share” means any Share (other than a Share removed from the Relevant Shares Register (defined in Article 44.3.2) pursuant to Article 44.3.5), in which a Relevant Person has an interest or which is declared to be a Relevant Share pursuant to Article 44.3.4;

 

44.3.

 

	
  

	
44.3.1.

	
The Board of Directors shall not register a person as a holder of a Share unless the person has given to the Board of Directors a declaration (in a form prescribed by the Board of Directors) signed by him or on his behalf, stating his name, nationality, that he is not a Relevant Person falling within paragraphs (a) or (b) of the definition of that term and other information required by the Board of Directors.

 

	
  

	
44.3.2.

	
The Board of Directors shall maintain a register (the “Relevant Shares Register”), in which particulars shall be entered of any Share which has been:

	
  

	
 (a)

	
acknowledged by the holder (or by a joint holder) to be a Relevant Share;

	
  

	
 (b)

	
declared to be a Relevant Share pursuant to Article 44.3.4; or

	
  

	
 (c)

	
determined to be an Affected Share pursuant to Article 44.4.2;

and which has not ceased to be a Relevant Share. The particulars in the Relevant Shares Register in respect of any Share shall include the identity of the holder or joint holders and information requested by and supplied to the Board of Directors.

 

	
  

	
44.3.3.

	
Each registered holder of a Share which has not been acknowledged to be a Relevant Share who becomes aware that such Share is or has become a Relevant Share shall forthwith notify the Company accordingly.

 

	
  

	
44.3.4.

	
The Board of Directors may notify in writing the registered holder of a Share which is not in the Relevant Shares Register and appears to be a Relevant Share, requiring him to show that the Share is not a Relevant Share.  Any person to whom such notice has been issued may within 21 clear days after the issue of the notice (or such longer period as the Board of Directors may decide) represent to the Board of Directors why such Share should not be treated as a Relevant Share but if, after considering such representations and other relevant information, the Board of Directors is not so satisfied, it shall declare such Share to be a Relevant Share and treat it as such.

 

  

57

  

	
  

	
44.3.5.

	
The Board of Directors shall remove a Relevant Share from the Relevant Shares Register if the holder of the Relevant Share gives to the Board of Directors a declaration (in a form prescribed by the Board of Directors), together with such other evidence as the Board of Directors may require, which satisfies it that such Share is no longer, or should not be treated, as a Relevant Share.

 

44.4.

 

	
  

	
44.4.1.

	
Article 44.4.2 shall apply for so long as the Company holds or enjoys any Operating Right where the Board of Directors determines that it is necessary to take steps to protect any Operating Right because an Intervening Act is contemplated, threatened or intended, may take place or has taken place;

 

	
  

	
44.4.2.

	
Where a determination has been made under Article 44.4.1, the Board of Directors shall take such of the following steps as they consider necessary or desirable to overcome, prevent or avoid an Intervening Act:

 

the Board of Directors may remove any Director from office, by a resolution passed by a majority of 75 per cent or more of the other Directors present and voting at the relevant meeting;

 

the Board of Directors may seek to identify those Relevant Shares  which gave rise to the determination under Article 44.4.1 and by a resolution passed by a majority of 75 per cent or more of the Directors present and voting at the relevant meeting deal with such Shares as Affected Shares; and

 

when the aggregate number of Relevant Shares in the Relevant Shares Register exceeds the Permitted Maximum, the Board of Directors may deal with the Relevant Shares which it decides, by a resolution passed by a majority of 75 per cent or more of the Directors present and voting at the relevant meeting, are in excess of the Permitted Maximum as Affected Shares.

 

  

58

  

	
  

	
 44.5.

	
The Board of Directors shall give an Affected Share Notice to the registered holder of any Affected Share and state that Article 44.6 is to be applied forthwith in respect of such Affected Share. The registered holder of the Affected Share may within 21clear days after the issue of the notice (or such longer period as the Board of Directors may decide) represent to the Board of Directors why such Share should not be treated as an Affected Share and if, after considering such representations and other relevant information, the Board of Directors considers that the Share should not be treated as an Affected Share it shall forthwith withdraw the Affected Share Notice and Article 44.6 shall no longer apply to the Share.

 

	
  

	
 44.6.

	
An Affected Share in respect of which an Affected Share Notice has been served shall be treated as a dormant share (as defined in section 308 of the Companies Law) except that the registered holder of the Affected Share shall continue to have the right to receive dividends and other distributions of the Company and participate in bonus or rights issues of the Company in respect of such Share.

 

	
  

	
 44.7.

	
In deciding which Shares are to be treated as Affected Shares, the Board of Directors shall have regard to the Relevant Shares which in its opinion have directly or indirectly caused the determination under Article 44.4 and the chronological order in which Relevant Shares have been entered in the  Relevant Shares Register (and accordingly treat as Affected Shares those Relevant Shares entered in the Relevant Shares Register most recently) except where such criterion would in their opinion be inequitable, in which event the Board of Directors shall apply such other criterion or criteria as they may consider appropriate.

 

	
  

	
 44.8.

	
Subject to the other provisions of this Article 44, the Board of Directors shall be entitled to assume without enquiry that:

 

	
  

	
44.8.1.

	
all Shares not in the Relevant Shares Register and not falling within clause 44.8.2 are neither Relevant Shares nor Shares which would be or be capable of being treated as Affected Shares; and

 

	
  

	
44.8.2.

	
all or some specified number of the Shares are Relevant Shares held by a Relevant Person falling within paragraphs (a)-(b) in the definition of that term if they (or interests in them) are held by a Depositary, trustee, registration or nominee company or other agent unless and for so long as, in respect of any such Shares, it is established to their satisfaction that such Shares are not Relevant Shares.

 

	
  

	
 44.9.

	
Any resolution or determination of, or any decision or the exercise of any discretion or power by, the Board of Directors or any one of the Directors under this Article 44 shall be final and conclusive.

 

44.10.

 

	
  

	
44.10.1.

	
On withdrawal of the determination under Article 44.4.1, the Board of Directors shall cease to act pursuant to such determination and inform every person on whom an Affected Share Notice has been served that Article 44.6 no longer applies in respect of such Share. The withdrawal of such a determination shall not affect the validity of any action taken by the Board of Directors under this Article whilst that determination remained in effect and such actions shall not be open to challenge on any ground whatsoever.

 

  

59

  

	
  

	
44.10.2.

	
The  Board of Directors shall, so long as it acts reasonably and in good faith, be under no liability to the Company or to any other person for failing to treat any Share as an Affected Share or any person as a Relevant Person in accordance with this Article and it shall not be liable to the Company or any other person if, having acted reasonably and in good faith it determines erroneously that any Share is an Affected Share, or any person is a Relevant Person or on the basis of such determination or any other determination or resolution, they perform or exercise their duties, powers, rights or discretions under this Article in relation to such Share.

 

	
  

	
 44.11.

	
A person who has an interest in Shares by virtue of having an interest in Depositary Receipts shall be deemed to have an interest in the number of Shares represented by such Depositary Receipts and not (in the absence of any other reason why he should be so treated) in the remainder of the Depositary Shares held by the relevant Depositary.

 

	
45.

	
Cross Ownership and Control

 

	
  

	
 45.1.

	
An Office Holder in the Company, an Interested Party in the Company, or an Office Holder in any Interested Party in the Company will not be a party to any agreement, arrangement or understanding with a Competing MRT Operator of the Company, or an Interested Party or an Office Holder in it, or an Office Holder in an Interested Party in a Competing MRT Operator of the Company, or any other body in which a Competing MRT Operator of the Company is an Interested Party, which are intended to or might reduce or harm competition in anything that pertains to MRT Services, MRT Terminal Equipment or any other Telecommunications (Bezeq) Services.

 

	
  

	
 45.2.

	
An Office Holder in the Company, an Interested Party in the Company, or an Office Holder in any Interested Party in the Company will not Hold, directly or indirectly, five percent (5%) or more of any Mean of Control of a Competing MRT Operator of the Company, or serve as an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator of the Company (subject to certain exceptions specified in the License); for this matter, "Holding" includes holding as an agent.

 

	
  

	
 45.3.

	
An Office Holder in the Company, an Interested Party in the Company, or an Office Holder in any Interested Party in the Company will not Control a Competing MRT Operator of the Company, and will not cause himself, by any act or omission, to be Controlled by a Competing MRT Operator of the Company or by an Office Holder or an Interested Party in a Competing MRT Operator of the Company, or by an Interested Party in a Competing MRT Operator of the Company, or by a person or entity that Controls a Competing MRT Operator of the Company.

 

For the purposes of Article 45, the terms - "Competing MRT Operator," "Interested Party," "Office Holder," "MRT Services," "MRT Terminal Equipment," "Telecommunications (Bezeq) Services," "Means of Control," "Holding" and “Control” - shall bear the same meaning as in, and shall be interpreted in accordance with, the License.

 

60

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