Document:

Exhibit
10.4

AMENDMENT

Reference is made to each of
those certain Subscription Agreements (the ‘‘Subscription
Agreements’’), dated January 17, 2007, by and between
Handheld Entertainment, Inc. (the ‘‘Company’’),
and each of the subscribers for Units (as defined in the Subscription
Agreement), to each of those certain Warrants to Purchase Common Stock
of the Company at an exercise price of $4.00 per Share (the
‘‘$4.00 Warrants’’) and to each of those
certain Warrants to Purchase Common Stock of the Company at an exercise
price of $3.50 per share (the ‘‘$3.50
Warrants’’) issued to subscribers for Units. Capitalized
terms used herein, but not otherwise defined, shall have the meanings
ascribed to such terms in the Subscription Agreements, the $4.00
Warrants or the $3.50 Warrants, respectively.

In consideration
of the premises and mutual agreements herein set forth and other good
and valuable consideration, the receipt and adequacy of which hereby
are acknowledged, the undersigned agree as
follows:

			
		1. 	No provision of Section 5(b) of the
Subscription Agreements shall apply to the $4.00 Warrants, and such
Section 5(b) is hereby amended to read in its entirety as follows:

‘‘Subject to the provisions of Section 5(f)
below, (i) if the Company fails to file the Registration Statement with
the SEC on or prior to January 31, 2007, then the exercise price of the
shares of Common Stock underlying the $3.50 Warrants (the
‘‘$3.50 Warrant Shares’’) shall be reduced by
10% of the original exercise price or (ii) if the Company fails
to obtain effectiveness of the Registration Statement by the SEC on or
prior to March 15, 2007, then the exercise price per $3.50 Warrant
Share shall be reduced by 20% of the original exercise price;
provided, however, that if the exercise price has been reduced pursuant
to clause (i) above, then the exercise price shall only be reduced by
an additional 10% pursuant to this clause (ii). To the extent
the Company has failed to obtain effectiveness of the Registration
Statement by the SEC on or prior to March 15, 2007 (and the exercise
price has been reduced by an aggregate of 20%), then at the end
of every 30 day period thereafter that the Company has still not
obtained the effectiveness of the Registration Statement, the exercise
price of the $3.50 Warrants Shares shall be reduced by an additional
10% of the original exercise
price.’’

			
		2. 	Section 8 of each of the
$4.00 Warrants is hereby amended by deleting the words
‘‘Reset of Warrant Price’’ from the
heading thereof, and by deleting paragraph (b) thereof in its
entirety.

			
		3. 	This Amendment shall be governed by
and construed in accordance with the internal laws of the State of New
York, without reference to principles of conflicts of laws. Any dispute
involving this Amendment or the agreements referred to herein shall be
brought only in the United States District Court for the Southern
District of New York.

			
		4. 	This Amendment shall be
binding upon and inure to the benefit of and be enforceable by the
respective successors and assigns of the parties hereto.

The
parties hereto have caused this Amendment to be duly executed as of
this      day of January  2007.

							
	 			HANDHELD
ENTERTAINMENT, INC.
	 			By:			    
	 			 			Name:
	 			 			Title:
	

[COUNTERPARTY
SIGNATURE ON NEXT PAGE]

EXECUTION BY NATURAL PERSONS

AGREED AND ACCEPTED:

                                                                    

Name:
 Date:

EXECUTION BY AN ENTITY

                                                                    

(Name of Entity)

		
	By:  	                                                                                                    

Name:
 Title:
 Date:exv10w1

 

LOAN AGREEMENT

Dated as of January 24, 2007

between

LTF CMBS I, LLC,

as Borrower,

and

GOLDMAN SACHS COMMERCIAL MORTGAGE CAPITAL, L.P.,

as Lender

Goldman Sachs Commercial Mortgage Capital, L.P.

Loan Agreement

Life Time Fitness Portfolio

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	DEFINITIONS

	 	 	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE I

	GENERAL TERMS

	 
	 	 	 	 	 	 
	Section 1.1.

	 	The Loan
	 	 	24	 
	Section 1.2.

	 	Interest and Principal
	 	 	25	 
	Section 1.3.

	 	Method and Place of Payment
	 	 	26	 
	Section 1.4.

	 	Taxes
	 	 	26	 
	Section 1.5.

	 	Release
	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE II

	DEFEASANCE, ASSUMPTION, AND PROPERTY SUBSTITUTION

	 
	 	 	 	 	 	 
	Section 2.4.

	 	Defeasance
	 	 	27	 
	Section 2.2.

	 	Assumption
	 	 	30	 
	Section 2.2.

	 	Substitution
	 	 	31	 
	Section 2.1.

	 	Voluntary Prepayment
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE III

	ACCOUNTS

	 
	 	 	 	 	 	 
	Section 3.1.

	 	Collection Account
	 	 	34	 
	Section 3.2.

	 	Cash Management Account
	 	 	35	 
	Section 3.3.

	 	Loss Proceeds Account
	 	 	36	 
	Section 3.4.

	 	Basic Carrying Costs Escrow Account
	 	 	37	 
	Section 3.5.

	 	TI/LC Reserve Account
	 	 	38	 
	Section 3.6.

	 	Capital Expenditure Reserve Account
	 	 	38	 
	Section 3.9.

	 	Excess Cash Flow Reserve Account
	 	 	39	 
	Section 3.10.

	 	Account Collateral
	 	 	39	 
	Section 3.11.

	 	Bankruptcy
	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	REPRESENTATIONS

	 
	 	 	 	 	 	 
	Section 4.1.

	 	Organization
	 	 	41	 
	Section 4.2.

	 	Authorization
	 	 	41	 
	Section 4.3.

	 	No Conflicts
	 	 	41	 
	Section 4.4.

	 	Consents
	 	 	42	 
	Section 4.5.

	 	Enforceable Obligations
	 	 	42	 
	Section 4.6.

	 	No Default
	 	 	42	 
	Section 4.7.

	 	Payment of Taxes
	 	 	42	 
	Section 4.8.

	 	Compliance with Law
	 	 	42	 

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	 	 	 	 	Page
	Section 4.9.

	 	ERISA
	 	 	42	 
	Section 4.10.

	 	Investment Company Act
	 	 	43	 
	Section 4.11.

	 	No Bankruptcy Filing
	 	 	43	 
	Section 4.12.

	 	Other Debt
	 	 	43	 
	Section 4.13.

	 	Litigation
	 	 	43	 
	Section 4.14.

	 	Leases; Material Agreements
	 	 	43	 
	Section 4.15.

	 	Full and Accurate Disclosure
	 	 	44	 
	Section 4.16.

	 	Financial Condition
	 	 	44	 
	Section 4.17.

	 	Single-Purpose Requirements
	 	 	44	 
	Section 4.18.

	 	[Intentionally Omitted]
	 	 	44	 
	Section 4.19.

	 	Not Foreign Person
	 	 	44	 
	Section 4.20.

	 	Labor Matters
	 	 	44	 
	Section 4.21.

	 	Title
	 	 	44	 
	Section 4.22.

	 	No Encroachments
	 	 	45	 
	Section 4.23.

	 	Physical Condition
	 	 	45	 
	Section 4.24.

	 	Fraudulent Conveyance
	 	 	45	 
	Section 4.25.

	 	Management
	 	 	46	 
	Section 4.26.

	 	Condemnation
	 	 	46	 
	Section 4.27.

	 	Utilities and Public Access
	 	 	46	 
	Section 4.28.

	 	Environmental Matters
	 	 	46	 
	Section 4.29.

	 	Assessments
	 	 	47	 
	Section 4.30.

	 	No Joint Assessment
	 	 	47	 
	Section 4.31.

	 	Separate Lots
	 	 	48	 
	Section 4.32.

	 	Permits; Certificate of Occupancy
	 	 	48	 
	Section 4.33.

	 	Flood Zone
	 	 	48	 
	Section 4.34.

	 	Security Deposits
	 	 	48	 
	Section 4.35.

	 	Acquisition Documents
	 	 	48	 
	Section 4.36.

	 	Insurance
	 	 	48	 
	Section 4.38.

	 	No Dealings
	 	 	48	 
	Section 4.39.

	 	Estoppel Certificates
	 	 	48	 
	Section 4.40.

	 	Embargoed Person
	 	 	48	 
	Section 4.41.

	 	Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws
	 	 	49	 
	Section 4.42.

	 	Survival
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE V

	AFFIRMATIVE COVENANTS

	 
	 	 	 	 	 	 
	Section 5.1.

	 	Existence
	 	 	49	 
	Section 5.2.

	 	Maintenance of Properties
	 	 	50	 
	Section 5.3.

	 	Compliance with Legal Requirements
	 	 	50	 
	Section 5.4.

	 	Impositions and Other Claims
	 	 	50	 
	Section 5.5.

	 	Access to Properties
	 	 	50	 
	Section 5.6.

	 	Cooperate in Legal Proceedings
	 	 	50	 

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	 	 	 	 	Page
	Section 5.7.

	 	Leases
	 	 	51	 
	Section 5.8.

	 	Plan Assets, etc.
	 	 	52	 
	Section 5.9.

	 	Further Assurances
	 	 	52	 
	Section 5.10.

	 	Management of Collateral
	 	 	52	 
	Section 5.11.

	 	Notice of Material Event
	 	 	53	 
	Section 5.12.

	 	Annual Financial Statements
	 	 	53	 
	Section 5.13.

	 	Quarterly Financial Statements
	 	 	54	 
	Section 5.14.

	 	Monthly Financial Statements
	 	 	54	 
	Section 5.15.

	 	Insurance
	 	 	54	 
	Section 5.16.

	 	Casualty and Condemnation
	 	 	58	 
	Section 5.17.

	 	Annual Budget
	 	 	61	 
	Section 5.18.

	 	General Indemnity
	 	 	61	 
	Section 5.19.

	 	Nonbinding Consultation
	 	 	61	 
	Section 5.20.

	 	Compliance with Encumbrances
	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	NEGATIVE COVENANTS

	 
	 	 	 	 	 	 
	Section 6.1.

	 	Liens on the Properties
	 	 	62	 
	Section 6.2.

	 	Ownership
	 	 	62	 
	Section 6.3.

	 	Transfer
	 	 	62	 
	Section 6.4.

	 	Debt
	 	 	62	 
	Section 6.5.

	 	Dissolution; Merger or Consolidation
	 	 	62	 
	Section 6.6.

	 	Change In Business
	 	 	62	 
	Section 6.7.

	 	Debt Cancellation
	 	 	63	 
	Section 6.8.

	 	Affiliate Transactions
	 	 	63	 
	Section 6.9.

	 	Misapplication of Funds
	 	 	63	 
	Section 6.10.

	 	Jurisdiction of Formation
	 	 	63	 
	Section 6.11.

	 	Modifications and Waivers
	 	 	63	 
	Section 6.12.

	 	ERISA
	 	 	63	 
	Section 6.13.

	 	Alterations and Expansions
	 	 	64	 
	Section 6.14.

	 	Advances and Investments
	 	 	64	 
	Section 6.15.

	 	Single-Purpose Entity
	 	 	64	 
	Section 6.16.

	 	Zoning and Uses
	 	 	64	 
	Section 6.17.

	 	Waste
	 	 	65	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	DEFAULTS

	 
	 	 	 	 	 	 
	Section 7.1.

	 	Event of Default
	 	 	65	 
	Section 7.2.

	 	Remedies
	 	 	67	 
	Section 7.3.

	 	No Waiver
	 	 	68	 
	Section 7.4.

	 	Application of Payments after an Event of Default
	 	 	68	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	CONDITIONS PRECEDENT

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	 	 	 	 	Page
	Section 8.1.

	 	Conditions Precedent to Closing
	 	 	69	 
	Section 8.2.

	 	Conditions Precedent to Addition of Qualified Substitute Property
	 	 	72	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 9.1.

	 	Successors
	 	 	74	 
	Section 9.2.

	 	GOVERNING LAW
	 	 	74	 
	Section 9.3.

	 	Modification, Waiver in Writing
	 	 	75	 
	Section 9.4.

	 	Notices
	 	 	75	 
	Section 9.5.

	 	TRIAL BY JURY
	 	 	76	 
	Section 9.6.

	 	Headings
	 	 	76	 
	Section 9.7.

	 	Assignment and Participation
	 	 	76	 
	Section 9.8.

	 	Severability
	 	 	77	 
	Section 9.9.

	 	Preferences
	 	 	78	 
	Section 9.10.

	 	Remedies of Borrower
	 	 	78	 
	Section 9.11.

	 	Offsets, Counterclaims and Defenses
	 	 	78	 
	Section 9.12.

	 	No Joint Venture
	 	 	78	 
	Section 9.13.

	 	Conflict; Construction of Documents
	 	 	78	 
	Section 9.14.

	 	Brokers and Financial Advisors
	 	 	78	 
	Section 9.15.

	 	Counterparts
	 	 	79	 
	Section 9.16.

	 	Estoppel Certificates
	 	 	79	 
	Section 9.17.

	 	Payment of Expenses; Mortgage Recording Taxes
	 	 	79	 
	Section 9.18.

	 	No Third-Party Beneficiaries
	 	 	79	 
	Section 9.19.

	 	Recourse
	 	 	80	 
	Section 9.20.

	 	Right of Set-Off
	 	 	82	 
	Section 9.21.

	 	Exculpation of Lender
	 	 	82	 
	Section 9.22.

	 	Servicer
	 	 	83	 
	Section 9.23.

	 	Prior Agreements
	 	 	83	 

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Exhibits

	 	 	 
	A-1

	 	Form of Collection Account Agreement
	A-2

	 	Form of Cash Management Agreement
	B-1

	 	Form of Minnesota Opinion
	B-2

	 	Form of Local Counsel Opinion
	B-3

	 	Form of Nonconsolidation Opinion
	B-4

	 	Form of Delaware Opinion
	C

	 	Form of Tenant Notice

Schedules

	 	 	 
	A

	 	Property
	B

	 	Exception Report
	C

	 	[none]
	D

	 	Initial Values
	E

	 	[none]
	F

	 	Rent Roll
	G

	 	Material Agreements
	H

	 	Allocated Loan Amounts
	I

	 	Organizational Chart

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LOAN AGREEMENT

          This Loan Agreement (this “Agreement”) is dated January 24, 2007 and is between
GOLDMAN SACHS COMMERCIAL MORTGAGE CAPITAL, L.P., a Delaware limited partnership, as lender
(together with its successors and assigns, including any lawful holder of any portion of the
Indebtedness, as hereinafter defined, “Lender”), and LTF CMBS I, LLC, a Delaware limited
liability company, as borrower (together with its permitted successors and assigns,
“Borrower”).

RECITALS

          Borrower desires to obtain from Lender the Loan (as hereinafter defined) in connection with
the financing of the Properties (as hereinafter defined).

          Lender is willing to make the Loan on the terms and conditions set forth in this Agreement if
Borrower joins in the execution and delivery of this Agreement, issues the Note and executes and
delivers the other Loan Documents.

          Lender and Borrower therefore agree as follows:

DEFINITIONS

          (a) When used in this Agreement, the following capitalized terms have the following meanings:

          “Account Collateral” means, collectively, the Collateral Accounts and all sums at any
time held, deposited or invested therein, together with any interest or other earnings thereon, and
all proceeds thereof (including proceeds of sales and other dispositions), whether accounts,
general intangibles, chattel paper, deposit accounts, instruments, documents or securities.

          “Affiliate” means, as to any person, any other person that, directly or indirectly, is
in control of, is controlled by or is under common control with such person.

          “Agreement” means this Loan Agreement, as the same may from time to time hereafter be
modified or replaced.

          “Allocated Loan Amount” means:

          (1) with respect to each Property on the date hereof, the portion of the Loan Amount allocated
thereto on the Closing Date, as set forth on Schedule H; and

          (2) with respect to any Qualified Substitute Property added to the Collateral in connection
with a Property Substitution pursuant to Section 2.2, the sum of the Allocated Loan Amounts
of the related Replaced Properties (which the Qualified Substitute Property replaced)

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immediately
prior to such Property Substitution (if a Property Substitution involves more than one Qualified
Substitute Property, the sum of the Allocated Loan Amounts of the related
Replaced Properties shall be allocated among such Qualified Substitute Properties in
proportion to each such Qualified Substitute Property’s Initial Value).

          “ALTA” means the American Land Title Association, or any successor thereto.

          “Alteration” means any demolition, alteration, installation, improvement or expansion
of or to any of the Properties or any portion thereof, but does not include work which is
Remodeling.

          “Annual Budget” means a capital and operating expenditure budget for the Properties
prepared by Borrower and specifying amounts, if any, that Borrower will be obligated to expend to
operate and maintain the Properties at a standard at least equal to that maintained on the Closing
Date.

          “Appraisal” means, with respect to each Property, an as-is appraisal of such Property
that is prepared by a member of the Appraisal Institute selected by Lender, meets the minimum
appraisal standards for national banks promulgated by the Comptroller of the Currency pursuant to
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended
(FIRREA) and complies with the Uniform Standards of Professional Appraisal Practice (USPAP).

          “Approved Annual Budget” has the meaning set forth in Section 5.17.

          “Approved Management Agreement” means any management agreement that is approved by
Lender and with respect to which Lender receives Rating Confirmation.

          “Approved Property Manager” means Borrower, any Affiliate of Borrower, or any other
management company that is approved by Lender and with respect to which Lender receives Rating
Confirmation, in each case unless and until Lender requests the termination of that management
company pursuant to Section 5.10(d).

          “Assignment” has the meaning set forth in Section 9.7(b).

          “Assumption” has the meaning set forth in Section 2.2.

          “Bankruptcy Code” has the meaning set forth in Section 7.1(d).

          “Basic Carrying Costs Escrow Account” has the meaning set forth in Section
3.4(a).

          “Borrower” has the meaning set forth in the first paragraph of this agreement.

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          “Budgeted Operating Expenses” means, with respect to any calendar month, (i) an amount
equal to the Operating Expenses for such calendar month in the then-applicable Approved Annual
Budget, or (ii) such greater amount as shall equal Borrower’s actual Operating Expenses for such
month, except that during the continuance of a Trigger Period such greater amount may in no
event exceed 105% of the amount specified in clause (i), with no individual budget line item
exceeding 110% of the amount set forth in the then-applicable Approved
Annual Budget with respect to such line item for such month, in each case without the prior
written consent of Lender, not to be unreasonably withheld or delayed.

          “Business Day” means any day other than (i) a Saturday and a Sunday and (ii) a day on
which federally insured depository institutions in the State of New York or the state in which the
offices of Lender, its trustee, its Servicer or its Servicer’s collection account are located are
authorized or obligated by law, governmental decree or executive order to be closed.

          “Capital Expenditure” means hard and soft costs incurred by Borrower with respect to
replacements and capital repairs made to the Properties (including repairs to, and replacements of,
structural components, roofs, building systems, parking garages and parking lots), in each case to
the extent capitalized in accordance with GAAP.

          “Capital Expenditure Reserve Account” has the meaning set forth in Section
3.6(a).

          “Cash Management Account” has the meaning set forth in Section 3.2(a).

          “Cash Management Agreement” means a cash management agreement in substantially the
form of Exhibit A-2, as the same may from time to time be modified or replaced in
accordance herewith.

          “Cash Management Bank” means a depository institution selected by Lender in which
Eligible Accounts may be maintained. The initial Cash Management Bank shall be LaSalle Bank
National Association.

          “Casualty” means a fire, explosion, flood, collapse, earthquake or other casualty
affecting all or any portion of any Property.

          “Certificates” means, collectively, any senior and/or subordinate notes, debentures or
pass-through certificates, or other evidence of indebtedness, or debt or equity securities, or any
combination of the foregoing, representing a direct or beneficial interest, in whole or in part, in
the Loan.

          “Change of Control” means the occurrence of either or both of the following: (i) the
failure of Borrower to be Controlled by one or more Qualified Equityholders (individually or
collectively), or (ii) the failure of the Single-Purpose Equityholder (if any) to be Controlled by
the same Qualified Equityholders that Control Borrower; provided, however, that for so long as Life
Time Fitness, Inc. directly or indirectly owns all membership interests in Borrower, transfers or
issuances of interests in Life Time Fitness, Inc on a national securities exchange or through the
NASDAQ national markets system shall not be deemed a Change of Control.

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          “Closing Date” means the date of this Agreement.

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

          “Collateral” means all assets owned from time to time by Borrower including the
Properties, the Revenues and all other tangible and intangible property (including any Defeasance
Collateral) in respect of which Lender is granted a Lien under the Loan Documents, and all proceeds
thereof.

          “Collateral Accounts” means, collectively, the Cash Management Account, the Loss
Proceeds Account, the Basic Carrying Costs Escrow Account, the Capital Expenditure Reserve Account,
and the Excess Cash Flow Reserve Account.

          “Collection Account” has the meaning set forth in Section 3.1(a).

          “Collection Account Agreement” has the meaning set forth in Section 3.1(a).

          “Condemnation” means a taking or voluntary conveyance of all or part of any of the
Properties or any interest in or right accruing to or use of any of the Properties, as the result
of, or in settlement of, any condemnation or other eminent domain proceeding by any Governmental
Authority.

          “Consumer Price Index” means the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the United States Department of Labor, New York
Metropolitan Statistical Area, All Items (1982-84=100), or any successor index thereto,
approximately adjusted, and in the event that the Consumer Price Index is converted to a different
standard reference base or otherwise revised, the determination of adjustments provided for herein
shall be made with the use of such conversion factor, formula or table for converting the Consumer
Price Index as may be published by the Bureau of Labor Statistics or, if said Bureau shall not
publish the same, then with the use of such conversion factor, formula or table as may be published
by Prentice-Hall, Inc., or any other nationally recognized publisher of similar statistical
information; and if the Consumer Price Index ceases to be published, and there is no successor
thereto, such other index as Lender and Borrower, both acting reasonably, shall agree upon in
writing.

          “Contingent Obligation” means, with respect to any Person, any obligation of such
Person directly or indirectly guaranteeing any Debt of any other Person in any manner and any
contingent obligation to purchase, to provide funds for payment, to supply funds to invest in any
other Person or otherwise to assure a creditor against loss.

          “Control” of any entity means the ownership, directly or indirectly, of at least 51%
of the equity interests in, and the right to at least 51% of the distributions from, such entity
and the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such entity, whether through the ability to exercise voting power, by
contract or otherwise (“Controlled” and “Controlling” each have the meanings
correlative thereto).

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          “Cooperation Agreement” means that certain Mortgage Loan Cooperation Agreement, dated
as of the Closing Date, among Borrower, Lender and Sponsor, as the same may from time to time be
modified or replaced in accordance herewith.

          “Damages” to a party means any and all liabilities, obligations, losses, damages,
penalties, assessments, actions, judgments, suits, claims, costs, expenses (including reasonable
attorneys’ fees whether or not suit is brought), settlement costs and disbursements imposed on,
incurred by or asserted against such party.

          “Debt” means, with respect to any Person, without duplication:

     (i) all indebtedness of such Person to any other party (regardless of whether such
indebtedness is evidenced by a written instrument such as a note, bond or debenture),
including indebtedness for borrowed money or for the deferred purchase price of property or
services;

     (ii) all letters of credit issued for the account of such Person and all unreimbursed
amounts drawn thereunder;

     (iii) all indebtedness secured by a Lien on any property owned by such Person (whether
or not such indebtedness has been assumed) except obligations for impositions which are not
yet due and payable;

     (iv) all Contingent Obligations of such Person;

     (v) all payment obligations of such Person under any interest rate protection agreement
(including any interest rate swaps, floors, collars or similar agreements) and similar
agreements;

     (vi) all contractual indemnity obligations of such Person; and

     (vii) any material actual or contingent liability to any Person or Governmental
Authority with respect to any employee benefit plan (within the meaning of Section 3(3) of
ERISA) subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

          “Default” means the occurrence of any event which, but for the giving of notice or the
passage of time, or both, would be an Event of Default.

          “Default Interest” means, during the continuance of an Event of Default, the amount by
which interest accrued on the Notes at their respective Default Rates exceeds the amount of
interest that would have accrued on the Notes at their respective Interest Rates.

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          “Default Rate” means, with respect to any Note, the greater of (x) 5% per annum in
excess of the interest rate otherwise applicable to such Note hereunder and (y) 1% per annum in
excess of the Prime Rate from time to time.

          “DSCR” means, with respect to any Test Period, the quotient of (i) Net Operating
Income for such period divided by (ii) the Debt Service for such period.

          “Easement Areas” has the meaning set forth in Section 4.27(ii).

          “Eligible Account” means (i) a segregated account maintained with a federal or
state-chartered depository institution or trust company which complies with the definition of
Eligible Institution, or (ii) a segregated trust account or accounts maintained with the corporate
trust department of a federal depository institution or state-chartered depository institution
which has an investment-grade rating and is subject to regulations regarding fiduciary funds on
deposit under, or similar to, Title 12 of the Code of Federal Regulations Section 9.10(b) which, in
either case, has corporate trust powers, acting in its fiduciary capacity.

          “Eligible Institution” means an institution (i) whose commercial paper, short-term
debt obligations or other short-term deposits are rated at least A–1, Prime-1 or F-1, as
applicable, by each of the Rating Agencies and whose long-term senior unsecured debt obligations
are rated at least A or A2, as applicable, by each of the Rating Agencies, and whose deposits are
insured by the FDIC or (ii) with respect to which Lender shall have received Rating Confirmation.

          “Embargoed Person” has the meaning set forth in Section 4.40.

          “Engineering Report” means a structural and seismic engineering report or reports with
respect to each of the Properties prepared by an independent engineer approved by Lender and
delivered to Lender in connection with the Loan, and any amendments or supplements thereto
delivered to Lender.

          “Environmental Claim” means any written notice, claim, proceeding, investigation or
demand by any Person or Governmental Authority alleging or asserting liability with respect to
Borrower or any of the Properties arising out of, based on or resulting from (i) the alleged
presence, Use or Release of any Hazardous Substance, (ii) any alleged violation of any
Environmental Law, or (iii) any alleged injury or threat of injury to property, health or safety or
to the environment caused by Hazardous Substances.

          “Environmental Indemnity” means, with respect to each Property, that certain
environmental indemnity agreement executed by Borrower and the Sponsor as of the Closing Date, as
the same may from time to time be modified or replaced in accordance herewith.

          “Environmental Laws” means any and all present and future federal, state and local
laws, statutes, ordinances, rules, regulations and the like, as well as common law, any judicial or
administrative orders, decrees or judgments thereunder, and any permits, approvals, licenses,
registrations, filings and authorizations, in each case as now or hereafter in effect,

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relating to the pollution, protection or cleanup of the environment, relating to the impact of
Hazardous Substances on property, health or safety, or the Use or Release of Hazardous Substances,
or relating to the liability for or costs of other actual or threatened danger to health or the
environment. The term “Environmental Law” includes, but is not limited to, the following statutes,
as amended, any successors thereto, and any regulations promulgated pursuant thereto, and any state
or local statutes, ordinances, rules, regulations and the like addressing similar issues: the
Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and
Community Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource Conservation
and Recovery Act (including Subtitle I relating to underground storage tanks); the Clean Water Act;
the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational
Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide
and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; and the
River and Harbors Appropriation Act. The term “Environmental Law” also includes, but is not
limited to, any present and future federal state and local laws, statutes ordinances, rules,
regulations and the like, as well as common law, conditioning transfer of property upon a negative
declaration or other approval of a Governmental Authority of the environmental condition of a
property; or requiring notification or disclosure of Releases of Hazardous Substances or other
environmental conditions of a property to any Governmental Authority or other Person, whether or
not in connection with transfer of title to or interest in property.

          “Environmental Reports” means “Phase I Environmental Site Assessments” as referred to
in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-94 (and,
if necessary, “Phase II Environmental Site Assessments”), prepared by an independent environmental
auditor approved by Lender and delivered to Lender and any amendments or supplements thereto
delivered to Lender, and shall also include any other environmental reports delivered to Lender
pursuant to this Agreement and the Environmental Indemnities.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated thereunder.

          “ERISA Affiliate,” at any time, means each trade or business (whether or not
incorporated) that would, at the time, be treated together with Borrower as a single employer under
Title IV or Section 302 of ERISA or Section 412 of the Code.

          “Escrow Period” means any period from (i) the conclusion of any Fiscal Quarter during
which DSCR is less than 1.15:1, to (ii) the conclusion of the second of two consecutive Fiscal
Quarters thereafter during each of which DSCR exceeds 1.15:1.

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

          “Excess Cash Flow Reserve Account” has the meaning set forth in Section
3.9(a).

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          “Exception Report” means the report prepared by Borrower and attached to this
Agreement as Schedule B, setting forth any exceptions to the representations set forth in
Article IV.

          “FF&E Account” means the bank account required by the terms of the LTF CO Lease to be
established (either in the name of Borrower or LTF CO), maintained and funded monthly by LTF CO in
the amount equal to (i) the product of (A) $7,333.33, and (B) the number of Properties then demised
by the LTF CO Lease, less any amounts expended by LTF CO during the prior month for which it would
have been entitled to withdraw funds from the FF& Account, or (ii) such lesser amount as is
necessary to cause the balance therein to equal the product of (C) $333,333.33, and (D) the number
of Properties then demised by the LTF Lease, which funds may be withdrawn by LTF CO from time to
time to pay for acquisitions, repairs to or replacements of furniture, fixtures and equipment,
including fitness and similar equipment used by LTF CO in the operation of its business in the
Properties.

          “Fiscal Quarter” means the three-month period ending on March 31, June 30, September
30 and December 31 of each year, or such other fiscal quarter of Borrower as Borrower may select
from time to time with the prior consent of Lender, such consent not to be unreasonably withheld.

          “Fiscal Year” means the 12-month period ending on December 31 of each year, or such
other fiscal year of Borrower as Borrower may select from time to time with the prior consent of
Lender, not to be unreasonably withheld.

          “Fitch” means Fitch, Inc. and its successors.

          “Form W-8BEN” means Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for
United States Tax Withholding) of the Department of Treasury of the United States of America, and
any successor form.

          “Form W-8ECI” means Form W-8ECI (Certificate of Foreign Person’s Claim for Exemption
from Withholding of Tax on Income Effectively Connected with the Conduct of a Trade or Business in
the United States) of the Department of the Treasury of the United States of America, and any
successor form.

          “GAAP” means generally accepted accounting principles in the United States of America,
consistently applied.

          “Governmental Authority” means any federal, state, county, regional, local or
municipal government, any bureau, department, agency or political subdivision thereof and any
Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government (including any court).

          “Guaranty” means that certain guaranty, dated as of the Closing Date, executed by
Sponsor for the benefit of Lender.

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          “Hazardous Substances” means any and all substances (whether solid, liquid or gas)
defined, listed, or otherwise classified as hazardous wastes, hazardous substances, hazardous
materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants, pollutants
or words of similar meaning or regulatory effect under any present or future Environmental Laws or
that may have a negative impact on human health or the environment or the presence of which on, in
or under any of the Properties is prohibited under Environmental Law, including petroleum and
petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead and
radon, and compounds containing them (including gasoline, diesel fuel, oil and lead-based paint),
and radioactive materials, flammables and explosives and compounds containing them.

          “Indebtedness” means the Principal Indebtedness, together with interest and all other
obligations and liabilities of Borrower under the Loan Documents, including all Transaction Costs,
Yield Maintenance Premiums and other amounts due or to become due to Lender pursuant to this
Agreement, under the Notes or in accordance with any of the other Loan Documents, and all other
amounts, sums and expenses reimbursable by Borrower to Lender hereunder or pursuant to the Notes or
any of the other Loan Documents.

          “Indemnified Liabilities” has the meaning set forth in Section 9.19(b).

          “Indemnified Parties” has the meaning set forth in Section 5.18.

          “Independent Director” of any corporation or limited liability company means an
individual who is duly appointed as a member of the board of directors or board of managers of such
corporation or limited liability company and who is not, and has never been, and will not while
serving as Independent Director, be any of the following:

     (i) a member, partner, equityholder, manager, director, officer or employee of
Borrower, any Single-Purpose Equityholder or any of their respective equityholders or
affiliates (other than as an independent director or manager of an affiliate of Borrower or
any Single-Purpose Equityholder that is not in the direct chain of ownership of Borrower and
that is required by a creditor to be a single purpose bankruptcy remote entity, provided
that such independent director or manager is employed by a company that routinely provides
professional independent directors or managers);

     (ii) a creditor, supplier or service provider (including provider of professional
services) to Borrower, any Single-Purpose Equityholder or any of their respective
equityholders or affiliates (other than a company that routinely provides professional
independent managers or directors and which also provides lien search and other similar
services to Borrower, any Single-Purpose Equityholder or any of their respective
equityholders or affiliates in the ordinary course of business);

     (iii) a family member of any such member, partner, equityholder, manager, director,
officer, employee, creditor, supplier or service provider; or

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     (iv) a Person that controls (whether directly, indirectly or otherwise) any of (i),
(ii) or (iii) above.

          “Initial Interest Rate” means 6.03% per annum.

          “Initial Principal Payment Date” means the Payment Date in March, 2007.

          “Initial Value” means, with respect to each initial Property, the dollar amount
specified opposite the name of such Property in Schedule D, and with respect to each
Qualified Substitute Property, the market value thereof at the time of substitution, based on a
then current Appraisal.

          “Insurance Requirements” means, collectively, (i) all material terms of any insurance
policy required pursuant to this Agreement and (ii) all material regulations and then-current
standards applicable to or affecting any of the Properties or any portion thereof or any use or
condition thereof, which may, at any time, be recommended by the board of fire underwriters, if
any, having jurisdiction over any of the Properties, or any other body exercising similar
functions.

          “Interest Accrual Period” means each period from and including the sixth day of a
calendar month through and including the fifth day of the immediately succeeding calendar month;
provided that, prior to a Securitization of the Loan, Lender shall have the right, in
connection with a change in the Payment Date in accordance with the definition thereof, to make a
corresponding change to the Interest Accrual Period. Notwithstanding the foregoing, the first
Interest Accrual Period shall commence on and include the Closing Date.

          “Interest Rate” means (i) with respect to the initial Note, the Initial Interest Rate,
and (ii) with respect to each Note resulting from the bifurcation of the initial Note into multiple
Notes pursuant to Section 1.1(c), the per annum interest rate of such Note as determined by
Lender in accordance with such Section.

          “Lease” means any lease, license, letting, concession, occupancy agreement, sublease
to which Borrower is a party or has a consent right, or other agreement (whether written or oral
and whether now or hereafter in effect) under which Borrower is a lessor, existing as of the
Closing Date or hereafter entered into by Borrower, in each case pursuant to which any Person is
granted a possessory interest in, or right to use or occupy all or any portion of any space in any
of the Properties, and every modification or amendment thereof, and every guarantee of the
performance and observance of the covenants, conditions and agreements to be performed and observed
by the other party thereto.

          “Legal Requirements” means all governmental statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities (including
Environmental Laws) affecting either Borrower or any of the Properties or any portion of or the
construction, ownership, use, alteration or operation of, or any portion of any
Property (whether now or hereafter enacted and in force), and all permits, licenses and
authorizations and regulations relating thereto.

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          “Lender” has the meaning set forth in the first paragraph of this Agreement and in
Section 9.7.

          “Lien” means any mortgage, lien (statutory or other), pledge, hypothecation,
assignment, preference, priority, security interest, or any other encumbrance or charge on or
affecting any Collateral or any portion thereof, or any interest therein (including any conditional
sale or other title retention agreement, any sale-leaseback, any financing lease or similar
transaction having substantially the same economic effect as any of the foregoing, the filing of
any financing statement or similar instrument under the Uniform Commercial Code or comparable law
of any other jurisdiction, domestic or foreign, and mechanics’, materialmen’s and other similar
liens and encumbrances, as well as any option to purchase, right of first refusal, right of first
offer or similar right).

          “Loan” has the meaning set forth in Section 1.1(a).

          “Loan Amount” means $105,000,000.

          “Loan Documents” means this Agreement, each of the Notes, each of the Mortgages (and
related financing statements), each of the Environmental Indemnities, each of the Subordination of
Property Management Agreements, the Cash Management Agreement, the Cooperation Agreement, any
Defeasance Pledge Agreement, the Guaranty, and all other agreements, instruments, certificates and
documents necessary to effectuate the granting to Lender of first-priority Liens on the Collateral
or otherwise in satisfaction of the requirements of this Agreement or the other documents listed
above, as all of the aforesaid may be modified or replaced from time to time in accordance
herewith.

          “Lockbox Bank” means a depositary institution selected by Borrower and approved by
Lender at which the lockbox for receipt of Revenues from the Properties is established. The
initial Lockbox Bank shall be the Minneapolis, Minnesota office of U.S. Bank National Association.

          “Lockout Period” means the period from the Closing Date to but excluding the first
Payment Date following the earlier to occur of (i) the fourth anniversary of the Closing Date and
(ii) the second anniversary of the date on which the entire Loan has been securitized pursuant to a
Securitization or series of Securitizations.

          “Loss Proceeds” means amounts, awards or payments payable to Borrower or Lender in
respect of all or any portion of any of the Properties in connection with a Casualty or
Condemnation thereof (after the deduction therefrom and payment to Borrower and Lender,
respectively, of any and all reasonable expenses incurred by Borrower and Lender in the recovery
thereof, including all reasonable attorneys’ fees and disbursements, the reasonable fees
of insurance experts and adjusters and the costs incurred in any litigation or arbitration
with respect to such Casualty or Condemnation).

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          “Loss Proceeds Account” has the meaning set forth in Section 3.3(a).

          “LTF CO” means LTF Club Operations, Inc., a Minnesota corporation, which is Controlled
by Sponsor, and any successor in interest to LTF CO as tenant under any Lease of any of the
Properties.

          “LTF CO Lease” means the unitary Lease between Borrower and LTF CO (whose obligations
thereunder are guaranteed by Sponsor) demising each and all of the Properties, which has been
approved by Lender on or prior to the date hereof, and which provides, among other things, that LTF
CO as Tenant shall create and thereafter maintain the FF&E Account, which shall be by the terms of
the LTF CO Lease either be in the name of or pledged to Borrower to secure the rental payment and
all other obligations of LTF CO as Tenant thereunder, and which shall permit the assignment by
Borrower of its interest in the FF&E Account to Lender.

          “Material Adverse Effect” means a material adverse effect upon (i) the ability of
Borrower to perform, or of Lender to enforce, any material provision of any Loan Document, (ii) the
enforceability of any material provision of any Loan Document, or (iii) the value, Net Operating
Income, use or enjoyment of any of the Properties or the operation thereof.

          “Material Agreements” means (x) each contract and agreement (other than Leases)
relating to the ownership, management, development, use, operation, leasing, maintenance, repair or
improvement of any of the Properties, or otherwise imposing obligations on Borrower, under which
Borrower would have the obligation to pay more than $50,000 per annum or which cannot be terminated
by Borrower without cause upon 60 days’ notice or less without payment of a termination fee, and
(y) any reciprocal easement agreement, declaration of covenants, condominium documents, ground
lease, parking agreement or other material Permitted Encumbrance.

          “Material Alteration” means any Alteration to be performed by or on behalf of Borrower
at any of the Properties which (a) is reasonably likely to have a Material Adverse Effect with
respect to the applicable Property, (b) is reasonably expected to cost in excess of 5% of the
Allocated Loan Amount of the applicable Property, as determined by an independent architect, or (c)
is reasonably expected to permit (or is reasonably likely to induce) any Tenant to terminate its
Lease or abate rent.

          “Maturity Date” means the Payment Date in February, 2017, or such earlier date as may
result from acceleration of the Loan in accordance with this Agreement.

          “Minimum Balance” has the meaning set forth in Section 3.2(a).

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          “Monthly Capital Expenditure Reserve Amount” means $54,445.00, but may be revised by
written notice given by Lender to Borrower in connection with a Property Substitution or Property
release pursuant to Article II.

          “Moody’s” means Moody’s Investors Service, Inc. and its successors.

          “Mortgage” means, with respect to each Property, that certain mortgage, deed of trust
or deed to secure debt, as the case may be, encumbering such Property, executed by Borrower as of
the Closing Date, as the same may from time to time be modified or replaced in accordance herewith.
Each Mortgage shall secure the entire Indebtedness, provided that in the event that the
jurisdiction in which the Property is located imposes a mortgage recording, intangibles or similar
Tax and does not permit the allocation of indebtedness for the purpose of determining the amount of
such Tax payable, the principal amount secured by such Mortgage shall be equal to the greater of
(x) 125% of such Property’s Allocated Loan Amount and (y) the appraised value of such Property.

          “Net Operating Income” means, with respect to any Test Period, the excess of (i)
Operating Income for the last Fiscal Quarter contained in such Test Period, times four,
minus (ii) Operating Expenses for such Test Period.

          “NOI Concentration Test” means a test which shall be satisfied if (i) no single
Property would contribute more than 20% of the aggregate Net Operating Income of the Properties
while there are six (6) Properties securing the Loan; (ii) no single Property would contribute more
than 22% of the aggregate Net Operating Income of the Properties while there are five (5)
Properties securing the Loan; or (iii) no single Property would contribute more than 26% of the
aggregate Net Operating Income of the Properties while there are four (4) Properties securing the
Loan.

          “Nonconsolidation Opinion” means the opinion letter, dated the Closing Date, delivered
by Borrower’s counsel to Lender and addressing issues relating to substantive consolidation in
bankruptcy.

          “Note” means that certain promissory note, dated as of the Closing Date, made by
Borrower to the order of Lender to evidence the Loan, as such note may be replaced by multiple
Notes in accordance with Section 1.1(c) and as otherwise modified, assigned (in whole or in
part) and/or replaced from time to time in accordance herewith.

          “OFAC List” means the list of specially designated nationals and blocked persons
subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of
Foreign Assets Control and any other similar list maintained by the U.S. Treasury Department,
Office of Foreign Assets Control pursuant to any applicable governmental statutes, laws, rules,
orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities,
including, without limitation, trade embargo, economic sanctions, or other prohibitions imposed by
Executive Order of the President of the United States. The OFAC List currently is accessible
through the internet website at www.treas.gov/ofac/t11sdn.pdf.

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          “Officer’s Certificate” means a certificate delivered to Lender which is signed by an
authorized officer of Borrower and certifies the information therein to the best of such officer’s
knowledge.

          “Operating Expenses” means, for any period, all operating, renting, administrative,
management, legal and other ordinary expenses of Borrower during such period, determined in
accordance with GAAP; provided, however, that such expenses shall not include (i)
depreciation, amortization or other noncash items (other than expenses that are due and payable but
not yet paid), (ii) interest, principal or any other sums due and owing with respect to the Loan,
(iii) income taxes or other taxes in the nature of income taxes, (iv) Capital Expenditures, or (v)
equity distributions.

          “Operating Income” means, for any period, all operating income of Borrower from each
of the Properties during such period, determined in accordance with GAAP (but without
straight-lining of rents), other than (i) Loss Proceeds (but Operating Income will include rental
loss insurance proceeds to the extent allocable to such period), (ii) any revenue attributable to a
Lease to the extent it is paid more than 30 days prior to the due date, (iii) any interest income
from any source, (iv) any repayments received from any third party of principal loaned or advanced
to such third party by Borrower, (v) any proceeds resulting from the Transfer of all or any portion
of such Property, (vi) sales, use and occupancy or other taxes on receipts required to be accounted
for by Borrower to any government or governmental agency, (vii) Termination Fees, and (viii) any
other extraordinary or non-recurring items.

          “Participation” has the meaning set forth in Section 9.7(b).

          “Payment Date” means, with respect to each Interest Accrual Period, the sixth day of
the calendar month in which such Interest Accrual Period ends (or if such sixth day is not a
Business Day, the first succeeding Business Day), provided, that prior to a Securitization,
Lender shall have the right to change the Payment Date so long as a corresponding change to the
Interest Accrual Period is also made.

          “Permits” means all licenses, permits, variances and certificates used in connection
with the ownership, operation, use or occupancy of each of the Properties (including certificates
of occupancy, business licenses, state health department licenses, licenses to conduct business and
all such other permits, licenses and rights, obtained from any Governmental Authority or private
Person concerning ownership, operation, use or occupancy of such Property).

          “Permitted Debt” means:

     (i) the Indebtedness; and

     (ii) Trade Payables not represented by a note, customarily paid by Borrower within 60
days of incurrence and in fact not more than 60 days outstanding, which are incurred in the
ordinary course of Borrower’s ownership and operation of the Properties,
in amounts reasonable and customary for similar properties and not exceeding 2.0% of
the Loan Amount in the aggregate.

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          “Permitted Encumbrances” means:

     (i) the Liens created by the Loan Documents;

     (ii) all Liens and other matters specifically disclosed on Schedule B of the Qualified
Title Insurance Policy;

     (iii) Liens, if any, for Taxes not yet delinquent;

     (iv) mechanics’, materialmen’s or similar Liens, if any, and Liens for delinquent taxes
or impositions, in each case only if being contested in good faith and by appropriate
proceedings, provided that no such Lien is in imminent danger of foreclosure and
provided further that either (a) each such Lien is released or discharged of
record or fully insured over by the title insurance company issuing the Qualified Title
Insurance Policy within 30 days of its creation, or (b) Borrower deposits with Lender, by
the expiration of such 30-day period, an amount equal to 150% of the dollar amount of such
Lien or a bond in the aforementioned amount from such surety, and upon such terms and
conditions, as is reasonably satisfactory to Lender, as security for the payment or release
of such Lien; and

     (v) rights of existing and future Tenants as tenants only pursuant to written Leases
entered into in conformity with the provisions of this Agreement.

          “Permitted Investments” means the following, subject to the qualifications hereinafter
set forth:

     (i) obligations of, or obligations guaranteed as to principal and interest by, the U.S.
government or any agency or instrumentality thereof, when such obligations are backed by the
full faith and credit of the United States of America;

     (ii) federal funds, unsecured certificates of deposit, time deposits, banker’s
acceptances, and repurchase agreements having maturities of not more than 365 days of any
bank, the short-term debt obligations of which are rated A-1+ (or the equivalent) by each of
the Rating Agencies and, if it has a term in excess of three months, the long-term debt
obligations of which are rated AAA (or the equivalent) by each of the Rating Agencies;

     (iii) deposits that are fully insured by the Federal Deposit Insurance Corp. (FDIC);

     (iv) debt obligations that are rated AAA or higher (or the equivalent) by each of the
Rating Agencies;

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     (v) commercial paper rated A–1+ (or the equivalent) by each of the Rating Agencies;

     (vi) investment in money market funds rated AAAm or AAAm–G (or the equivalent) by each
of the Rating Agencies; and

     (vii) such other investments as to which Lender shall have received Rating
Confirmation.

Notwithstanding the foregoing, “Permitted Investments” (i) shall exclude any security with the
Standard & Poor’s “r” symbol (or any other Rating Agency’s corresponding symbol) attached to the
rating (indicating high volatility or dramatic fluctuations in their expected returns because of
market risk), as well as any mortgage-backed securities and any security of the type commonly known
as “strips”; (ii) shall not have maturities in excess of one year; (iii) shall be limited to those
instruments that have a predetermined fixed dollar of principal due at maturity that cannot vary or
change; and (iv) shall exclude any investment where the right to receive principal and interest
derived from the underlying investment provides a yield to maturity in excess of 120% of the yield
to maturity at par of such underlying investment. Interest may either be fixed or variable, and
any variable interest must be tied to a single interest rate index plus a single fixed spread (if
any), and move proportionately with that index. No investment shall be made which requires a
payment above par for an obligation if the obligation may be prepaid at the option of the issuer
thereof prior to its maturity. All investments shall mature or be redeemable upon the option of
the holder thereof on or prior to the earlier of (x) three months from the date of their purchase
or (y) the Business Day preceding the day before the date such amounts are required to be applied
hereunder.

          “Person” means any individual, corporation, limited liability company, partnership,
joint venture, estate, trust, unincorporated association or Governmental Authority and any
fiduciary acting in such capacity on behalf of any of the foregoing.

          “Plan Assets” means assets of any (i) employee benefit plan (as defined in Section
3(3) of ERISA) subject to Title I of ERISA, (ii) plan (as defined in Section 4975(e)(1) of the
Code) subject to Section 4975 of the Code, or (iii) governmental plan (as defined in Section 3(32)
of ERISA) subject to federal, state or local laws, rules or regulations substantially similar to
Title I of ERISA or Section 4975 of the Code.

          “Policies” has the meaning set forth in Section 5.15(b).

          “Pooled Properties EBITDAR” has the meaning set forth in Section 2.3(a)(vi).

          “Pooled Properties Revenues” means all rents, rent equivalents, moneys payable as
damages pursuant to a Lease or in lieu of rent or rent equivalents, membership fees, income,
receivables, receipts, revenues, deposits (including security, utility and other deposits),
accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever
form or nature received by or paid to or for the account of or benefit of LTF CO from any and all
sources
including any obligations now existing or hereafter arising or created out of the sale, lease,
sublease, license, concession or other grant of the right of the use and occupancy of property or
rendering of services by LTF CO and proceeds, if any, from business interruption or other loss of
income insurance.

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          “Prepayment Period” means the final three interest accrual periods prior to the
Maturity Date.

          “Prime Rate” means the “prime rate” published in the “Money Rates” section of The
Wall Street Journal. If The Wall Street Journal ceases to publish the “prime rate,”
then Lender shall select an equivalent publication that publishes such “prime rate,” and if such
“prime rate” is no longer generally published or is limited, regulated or administered by a
governmental or quasi-governmental body, then Lender shall reasonably select a comparable interest
rate index.

          “Principal Indebtedness” means the principal balance of the Loan outstanding from time
to time.

          “Properties” means the real property described on Schedule A, and each
Qualified Substitute Property hereafter acquired by Borrower, in each case together with all
buildings and other improvements thereon, but shall not include any Property which as been released
pursuant to a defeasance pursuant to Section 2.1, Property Substitution pursuant to
Section 2.3 or release in connection with a voluntary prepayment pursuant Section
2.4(c).

          “Property” means one or more but less than all of the Properties, together with all
buildings and other improvements thereon.

          “Property Substitution” has the meaning set forth in Section 2.3(a).

          “Qualified Equityholder” means (i) Sponsor, (ii) U.S. Bank National Association or a
wholly owned subsidiary thereof, or (iii) a bank, saving and loan association, investment bank,
insurance company, trust company, commercial credit corporation, pension plan, pension fund or
pension advisory firm, mutual fund, government entity or plan, real estate company, investment fund
or an institution substantially similar to any of the foregoing, provided in each case under this
clause (ii) that such Person (x) has total assets (in name or under management) in excess of
$2,000,000,000 and (except with respect to a pension advisory firm or similar fiduciary)
capital/statutory surplus or shareholder’s equity in excess of $1,000,000,000 (in both cases,
exclusive of the Properties), and (y) is regularly engaged in the business of owning and operating
comparable properties in major metropolitan areas, or (iii) any other Person approved by Lender
with respect to which Rating Confirmation is received.

          “Qualified Substitute Property” means real property located in the United States of
America, together with all buildings and other improvements thereon, which real property is leased
to LTF Club Operations, Inc., a Minnesota corporation and is added to the Collateral in
connection with a Property Substitution pursuant to Section 2.3 after satisfaction of
the conditions described in such Section and in Section 8.2.

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          “Qualified Successor Borrower” means a Single-Purpose Entity that is Controlled by one
or more Qualified Equityholders.

          “Qualified Survey” means, with respect to each of the Properties, current title
surveys of such Property, certified to Borrower, the title company issuing the Qualified Title
Insurance Policy and Lender and their respective successors and assigns, in form and substance
reasonably satisfactory to Lender.

          “Qualified Title Insurance Policy” means, with respect to each of the Properties, an
ALTA extended coverage mortgagee’s title insurance policy in form and substance reasonably
satisfactory to Lender.

          “Rating Agency” shall mean, prior to the final Securitization of the Loan, each of
S&P, Moody’s and Fitch, or any other nationally-recognized statistical rating agency which has been
designated by Lender and, after the final Securitization of the Loan, shall mean any of the
foregoing that have rated and continue to rate any of the Certificates.

          “Rating Confirmation” means, with respect to any proposed action, confirmation in
writing from each of the Rating Agencies that such action shall not result, in and of itself, in a
downgrade, withdrawal or qualification of any rating then assigned to any outstanding Certificates;
except that if any portion of the Loan shall not have been securitized pursuant to a Securitization
rated by the Rating Agencies, then “Rating Confirmation” shall instead mean that the matter in
question is subject to the prior written approval of both (x) the applicable Rating Agencies (if
and to the extent that any portion of the Loan has been securitized pursuant to a Securitization or
series of Securitizations rated by such Rating Agencies), and (y) Lender in its sole discretion.
No Rating Confirmation shall be regarded as having been received unless and until any conditions
imposed on its effectiveness by any Rating Agency shall have been satisfied.

          “Release” with respect to any Hazardous Substance means any release, deposit,
discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring,
emptying, escaping, dumping, disposing or other movement of Hazardous Substances into the indoor or
outdoor environment (including the movement of Hazardous Substances through ambient air, soil,
surface water, ground water, wetlands, land or subsurface strata).

          “Release Price” means, with respect to each Property, 120% of its Allocated Loan
Amount, as such Allocated Loan Amount has been reduced by payments of principal assuming
proportionate allocation of such principal reduction payments to each Property’s Allocated Loan
Amount, together with the applicable Yield Maintenance Premium on such amount.

          “Remodeling” means remodeling, refurbishing, expansion, demolition and other
improvement work properly permitted under applicable law and performed by LTF CO, as permitted by
the LTF CO Lease, to the interior or exterior of a Property including without

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limitation the replacement of floor coverings or wall coverings, constructing, renovating or
reconfiguring locker rooms, workout areas, and office, retail or other spaces of the Property,
upgrading mechanical systems including but not limited to electrical, plumbing and HVAC systems,
and constructing, modifying or otherwise installing improvements customarily found in other
properties owned or leased by LTF CO or an Affiliate; provided that no such work shall reduce the
interior square footage by more than 5% in the aggregate or shall result in a material diminution
of the fair market value of the Property.

          “Rent Roll” has the meaning set forth in Section 4.14(a).

          “Replaced Property” shall have the meaning set forth in Section 2.3(a).

          “Revenues” means all rents, rent equivalents, moneys payable as damages pursuant to a
Lease or in lieu of rent or rent equivalents, royalties (including all oil and gas or other mineral
royalties and bonuses), income, receivables, receipts, revenues, deposits (including security,
utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and
other consideration of whatever form or nature received by or paid to or for the account of or
benefit of Borrower from any and all sources including any obligations now existing or hereafter
arising or created out of the sale, lease, sublease, license, concession or other grant of the
right of the use and occupancy of property or rendering of services by Borrower and proceeds, if
any, from business interruption or other loss of income insurance.

          “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc., and its successors.

          “Securitization” means a transaction in which all or any portion of the Loan is
deposited into one or more trusts which issue Certificates to investors, or a similar transaction.

          “Securitization Vehicle” means the issuer of Certificates in a Securitization of the
Loan.

          “Service” means the Internal Revenue Service or any successor agency thereto.

          “Servicer” means the entity or entities appointed by Lender from time to time to serve
as servicer and/or special servicer of the Loan. If at any time no entity is so appointed, the
term “Servicer” shall be deemed to refer to Lender.

          “Single Member LLC” means a limited liability company which either (x) has only one
member, or (y) has multiple members, none of which is a Single-Purpose Equityholder.

          “Single-Purpose Entity” means a Person which (a) was formed under the laws of the
State of Delaware solely for the purpose of acquiring and holding (i) an ownership interest in such
Property (or, if applicable, Defeasance Collateral), or (ii) in the case of a Single-Purpose
Equityholder, an ownership interest in the Borrower (or, if applicable, Defeasance Collateral), (b)
does not engage in any business unrelated to (i) such Property (or, if applicable, Defeasance

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Collateral), or (ii) in the case of a Single-Purpose Equityholder, its ownership interest in
the Borrower (or, if applicable, Defeasance Collateral), (c) does not have any assets other than
those related to (i) its interest in such Property (or, if applicable, Defeasance Collateral), or
(ii) in the case of a Single-Purpose Equityholder, its ownership interest in the Borrower (or, if
applicable, Defeasance Collateral), (d) does not have any Debt other than, in the case of Borrower,
Permitted Debt, (e) maintains books, accounts, records, financial statements, stationery, invoices
and checks which are separate and apart from those of any other Person (except that such Person’s
financial position, assets, results of operations and cash flows may be included in the
consolidated financial statements of an affiliate of such Person in accordance with GAAP,
provided that any such consolidated financial statements shall contain a note indicating
that such Person and its affiliates are separate legal entities and maintain records, books of
account separate and apart from any other Person), (f) is subject to and complies with all of the
limitations on powers and separateness requirements set forth in the organizational documentation
of such Person as of the Closing Date, (g) holds itself out as being a Person separate and apart
from each other Person and not as a division or part of another Person, (h) conducts its business
in its own name (except for services rendered under a management agreement with an affiliate, so
long as the manager, or equivalent thereof, under such management agreement holds itself out as an
agent of such Person), (i) exercises reasonable efforts to correct any known misunderstanding
actually known to it regarding its separate identity, and maintains an arm’s-length relationship
with its affiliates, (j) pays its own liabilities out of its own funds (including the salaries of
its own employees) and reasonably allocates any overhead that is shared with an affiliate,
including paying for shared office space and services performed by any officer or employee of an
affiliate, (k) maintains a sufficient number of employees in light of its contemplated business
operations, if any are required for such purpose, (l) conducts its business so that the assumptions
made with respect to it which are contained in the Nonconsolidation Opinion shall at all times be
true and correct in all material respects, (m) in the case of (i) a corporation, observes all
applicable corporate formalities in all material respects, (ii) a limited liability company,
observes all applicable limited liability company formalities in all material respects, and (iii) a
limited partnership, observes all applicable limited partnership formalities in all material
respects, (n) does not commingle its assets with those of any other Person and holds such assets in
its own name, (o) does not assume, guarantee or become obligated for the debts of any other Person,
and does not hold out its credit as being available to satisfy the obligations or securities of
others, (p) does not acquire obligations or securities of its shareholders, members or partners,
(q) does not pledge its assets for the benefit of any other Person and does not make any loans or
advances to any Person, (r) maintains adequate capital in light of its contemplated business
operations (without obligation to make additional contributions to capital), (s) has a
Single-Purpose Equityholder with two Independent Directors on such Single-Purpose Equityholder’s
board of directors or board of managers, (t) has by-laws or an operating agreement, or, in the case
of a limited partnership, has a Single-Purpose Equityholder with by-laws or an operating agreement,
which provides that, for so long as the Loan is outstanding, such Person shall not take or consent
to any of the follow
ing actions except to the extent expressly permitted in this Agreement and the
other Loan Documents:

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     (i) the dissolution, liquidation, consolidation, merger or sale of all or substantially
all of its assets (and, in the case of a Single-Purpose Equityholder, the assets of the
Borrower);

     (ii) the engagement by such Person (and, in the case of a Single-Purpose Equityholder,
the engagement by the Borrower) in any business other than the acquisition, development,
management, leasing, ownership, maintenance and operation of the Properties (or, if
applicable, Defeasance Collateral), and activities incidental thereto (and, in the case of a
Single-Purpose Equityholder, activities incidental to the acquisition and ownership of its
interest in the Borrower);

     (iii) the filing, or consent to the filing, of a bankruptcy or insolvency petition, any
general assignment for the benefit of creditors or the institution of any other insolvency
proceeding, or the seeking or consenting to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator, custodian or any similar official in respect of such Person
without the affirmative vote of both of its Independent Directors (and, in the case of a
Single-Purpose Equityholder, in respect of the Borrower without the affirmative vote of both
of such Single-Purpose Equityholder’s Independent Directors); and

     (iv) any amendment or modification of any provision of its (and, in the case of a
Single-Purpose Equityholder, the Borrower’s) organizational documents relating to
qualification as a “Single-Purpose Entity”;

and (u) if such entity is a Single Member LLC, has organizational documents which provide that upon
the occurrence of any event (other than a permitted equity transfer) that causes its sole member to
cease to be a member while the Loan is outstanding, at least one of its Independent Directors shall
automatically be admitted as the sole member of the Single Member LLC and shall preserve and
continue the existence of the Single Member LLC without dissolution.

          “Single-Purpose Equityholder” means a Single-Purpose Entity that (x) is a limited
liability company or corporation formed under the laws of the State of Delaware, (y) owns at least
a 1% direct equity interest in Borrower, and (z) serves as the general partner or managing member
of Borrower.

          “Sponsor” means Life Time Fitness, Inc. and the surviving entity in any merger or
consolidation involving Sponsor or any Person that acquires all or substantially all the assets of
Life Time Fitness, Inc..

          “Subordination of Property Management Agreement” means that certain consent and
agreement of manager and subordination of management agreement executed by Borrower and the
Approved Property Manager as of the Closing Date, as the same may from time to time be modified or
replaced in accordance herewith.

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          “Taxes” means all real estate and personal property taxes, assessments, fees, taxes on
rents or rentals, water rates or sewer rents, facilities and other governmental, municipal and
utility district charges or other similar taxes or assessments now or hereafter levied or
assessed or imposed against the Properties or Borrower with respect to the Properties or rents
therefrom or which may become Liens upon any of the Properties, without deduction for any amounts
reimbursable to Borrower by third parties.

          “Tenant” means any Person liable by contract or otherwise to pay monies (including a
percentage of gross income, revenue or profits) pursuant to a Lease.

          “Tenant Improvements” means, collectively, (i) tenant improvements to be undertaken
for any Tenant which are required to be completed by or on behalf of Borrower pursuant to the terms
of such Tenant’s Lease, and (ii) tenant improvements paid or reimbursed through allowances to a
Tenant pursuant to such Tenant’s Lease.

          “Tenant Notice” has the meaning set forth in Section 3.1(b).

          “Termination Fee” has the meaning set forth in Section 3.5(d).

          “Test Period” means each 12-month period ending on the last day of a Fiscal Quarter.

          “Trade Payables” means unsecured amounts payable by or on behalf of Borrower for or in
respect of the operation of the Properties in the ordinary course and which would under GAAP be
regarded as ordinary expenses, including amounts payable to suppliers, vendors, contractors,
mechanics, materialmen or other Persons providing property or services to the Properties or
Borrower and the capitalized amount of any ordinary-course financing leases.

          “Transaction” means, collectively, the transactions contemplated and/or financed by
the Loan Documents.

          “Transaction Costs” means the costs and expenses described in Section 9.17.

          “Transfer” means the sale or other whole or partial conveyance of all or any portion
of any of the Properties or any direct or indirect interest therein to a third party, including
granting of any purchase options, rights of first refusal, rights of first offer or similar rights
in respect of any portion of such Property or the subjecting of any portion of such Property to
restrictions on transfer; except that the conveyance of a space lease at such Property in
accordance herewith shall not constitute a Transfer.

          “Treasury Constant Yield” means the arithmetic mean of the rates published as
“Treasury Constant Maturities” as of 5:00 p.m., New York time, for the five Business Days preceding
the date on which acceleration has been declared, as shown on the USD screen of the Moneyline
Telerate Service (or such other page as may replace that page on that service, or such other page
or replacement therefor on any successor service), or if such service is not available, the
Bloomberg Service (or any successor service), or if neither the Moneyline Telerate Service nor the
Bloomberg Service is available, under Section 504 in the weekly statistical release

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designated H.15(519) (or any successor publication) published by the Board of Governors of the
Federal Reserve System, for “On the Run” U.S. Treasury obligations corresponding to the scheduled
Maturity Date. If no such maturity shall so exactly correspond, yields for the two most closely
corresponding published maturities shall be calculated pursuant to the foregoing sentence and the
Treasury Constant Yield shall be interpolated or extrapolated (as applicable) from such yields on a
straight-line basis (rounding, in the case of relevant periods, to the nearest month).

          “Trigger Period” means any Escrow Period or period when an Event of Default has
occurred and is continuing.

          “Use” means, with respect to any Hazardous Substance, the generation, manufacture,
processing, distribution, handling, use, treatment, recycling or storage of such Hazardous
Substance or transportation of such Hazardous Substance.

          “U.S. Person” means a United States person within the meaning of Section 7701(a)(30)
of the Code.

          “U.S. Tax” means any present or future tax, assessment or other charge or levy imposed
by or on behalf of the United States of America or any taxing authority thereof.

          “Waste” means any material abuse or destructive use (whether by action or inaction) of
any Property.

          “Yield Maintenance Premium” shall mean, with respect to any payment of principal (or
any portion thereof), the product of:

     (A) a fraction whose numerator is the amount so paid and whose denominator is the
outstanding principal balance of the Loan before giving effect to such payment, and

     (B) the excess of (1) the sum of the respective present values, computed as of the date
of such prepayment, of the remaining scheduled payments of principal and interest with
respect to the Loan (assuming no prepayments or acceleration of the Loan), determined by
discounting such payments to the date on which such payments are made at the Treasury
Constant Yield, over (2) the outstanding principal balance of the Loan on such date
immediately prior to such payment.

provided that in the case of any other prepayment of principal (or any portion thereof) other than
pursuant to Section 5.16(d), the Yield Maintenance Premium shall be not less than 1% of the
amount prepaid.

          The calculation of the Yield Maintenance Premium shall be made by Lender and shall, absent
manifest error, be final, conclusive and binding upon all parties.

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          (b) Rules of Construction. All references to sections, schedules and exhibits are to
sections, schedules and exhibits in or to this Agreement unless otherwise specified. Unless
otherwise specified: (i) all meanings attributed to defined terms in this Agreement shall be
equally applicable to both the singular and plural forms of the terms so defined, (ii) “including”
means “including, but not limited to”, and (iii) “mortgage” means a mortgage, deed of trust, deed
to secure debt or similar instrument, as applicable, and “mortgagee” means the secured party under
a mortgage, deed of trust, deed to secure debt or similar instrument. All accounting terms not
specifically defined in this Agreement shall be construed in accordance with GAAP, as same may be
modified in this Agreement.

ARTICLE I

GENERAL TERMS

          1.1. The Loan.

          (a) On the Closing Date, subject to the terms and conditions of this Agreement, Lender shall
make a loan to Borrower (the “Loan”) in an amount equal to the Loan Amount. The Loan shall
initially be represented by a single Note which shall bear interest as described in this Agreement
at a per annum rate equal to the Initial Interest Rate.

          (b) The Loan shall be secured by the Collateral.

          (c) Lender shall have the right at any time, at Lender’s sole discretion and expense, to
replace the initial Note with two or more replacement Notes, and the holder of each replacement
Note shall similarly have the right at any time, at such holder’s sole discretion, to replace its
Note with two or more replacement Notes. Each replacement Note shall be in the form of the Note so
replaced, but for its principal amount and Interest Rate. The principal amount of each Note shall
be determined by the applicable holder in its sole discretion, provided that the initial
sum of the principal amounts of the replacement Notes shall equal the then-outstanding principal
balance of the Notes that are so replaced. The Interest Rate of each replacement Note shall be
determined by the applicable holder in its sole discretion, provided that the initial
weighted average of such Interest Rates, weighted on the basis of the principal balances of the
respective Notes, shall initially equal the Interest Rate of the Note so replaced. Borrower shall
execute and return to Lender each such Note within five Business Days after Borrower’s receipt of
an execution copy thereof, and Borrower’s failure to do so within such time period shall, at
Lender’s election, constitute an immediate Event of Default hereunder. Borrower hereby authorizes
and appoints Lender as its attorney-in-fact to execute such replacement Notes on Borrower’s behalf
should Borrower fail to do so. The foregoing grant of authority is a power of attorney coupled
with an interest and such appointment shall be irrevocable for the term of this Agreement.
Borrower hereby ratifies all actions that such attorney shall lawfully take or cause to be taken in
accordance with this Section 1.1(c). If requested by Lender, Borrower shall deliver to
Lender, at Lender’s expense, together with such replacement Notes, an opinion of counsel with
respect to the due authorization and enforceability of such replacement Notes and confirming that
the delivery of such replacement Notes does not alter the conclusions reached in the legal opinions
delivered to Lender at Closing.

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          1.2. Interest and Principal.

          (a) On each Payment Date, Borrower shall pay to Lender a constant monthly payment of
$631,554.63, which amount shall be applied first toward the payment of interest on each Note for
the applicable Interest Accrual Period at the applicable Interest Rate (except that in each case,
interest shall be payable on the Indebtedness, including due but unpaid interest, at the Default
Rate with respect to any portion of such Interest Accrual Period falling during the continuance of
an Event of Default, in which case the monthly payment shall be increased by the amount of Default
Interest accrued on the Notes during the applicable Interest Accrual Period), and the balance shall
be applied toward the reduction of the outstanding principal balances of the Notes pro
rata in accordance with their then outstanding principal balances. On the Closing Date,
Borrower shall pay interest from and including the Closing Date through the end of the first
Interest Accrual Period. Interest payable hereunder shall be computed on the basis of a 360-day
year and the actual number of days elapsed in the related Interest Accrual Period.

          (b) No prepayments of the Loan shall be permitted except for (i) prepayments resulting from
Casualty or Condemnation as described in Section 5.16(d), (ii) a prepayment of the Loan in
whole (but not in part) during the Prepayment Period, (iii) a prepayment of the Loan in full (but
not in part) following the Lockout Period and prior to the Prepayment Period in accordance with
Section 2.4(b), or (iv) a prepayment in accordance with the release of an Individual
Property in accordance with Section 2.4(c), upon not less than 30 days and not more than 60 days
prior written notice in the case of prepayments pursuant to (ii) through (iv); provided
that any prepayment hereunder shall be accompanied by all interest accrued on the amount prepaid
plus, if such prepayment does not occur on a Payment Date, the amount of interest that would have
accrued thereon if the Loan had remained outstanding through the end of the Interest Accrual Period
in which such prepayment occurs, plus all other amounts then due under the Loan Documents.
Borrower’s notice of prepayment shall create an obligation of Borrower to prepay the Loan as set
forth therein, but may be rescinded with five days’ written notice to Lender (subject to payment of
any reasonable out-of-pocket costs and expenses resulting from such rescission). In addition,
Defeasance shall be permitted after the expiration of the Lockout Period as described in
Section 2.1. The entire outstanding principal balance of the Loan, together with interest
through the end of the applicable Interest Accrual Period and all other amounts then due under the
Loan Documents, shall be due and payable by Borrower to Lender on the Maturity Date.

          (c) If all or any portion of the Principal Indebtedness is paid to Lender following
acceleration of the Loan, Borrower shall pay to Lender an amount equal to the applicable Yield
Maintenance Premium. Amounts received in respect of the Indebtedness during the continuance of an
Event of Default shall be applied toward interest, principal and other components of the
Indebtedness (in such order as Lender shall determine) before any such amounts are applied toward
payment of Yield Maintenance Premiums, with the result that Yield Maintenance Premiums shall accrue
as the Principal Indebtedness is repaid but no amount received from Borrower shall constitute
payment of a Yield Maintenance Premium until the remainder of the Indebtedness shall have been paid
in full. Borrower acknowledges that (i) a
prepayment will cause damage to
Lender; (ii) the Yield Maintenance Premium is intended to

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compensate Lender for the loss of its investment and the expense incurred and time and effort
associated with making the Loan, which will not be fully repaid if the Loan is prepaid; (iii) it
will be extremely difficult and impractical to ascertain the extent of Lender’s damages caused by a
prepayment after an acceleration or any other prepayment not permitted by the Loan Documents; and
(iv) the Yield Maintenance Premium represents Lender’s and Borrower’s reasonable estimate of
Lender’s damages from the prepayment and is not a penalty.

          (d) Any payments of interest and/or principal not paid when due hereunder shall bear interest
at the applicable Default Rate and, when paid, shall be accompanied by a late fee in an amount
equal to 5% times the amount of such late payment in order to defray the expense incurred by Lender
in handling and processing such delinquent payment and to compensate Lender for the loss of the use
of such delinquent payment.

          (e) In the event of a prepayments resulting from Casualty or Condemnation as described in
Section 5.16(d) or a prepayment in accordance with the release of an Individual Property in
accordance with Section 2.1(c), Lender shall, upon written notice to Borrower, recalculate the
constant monthly payment subsequently due based on (i) the principal balance of the applicable Note
outstanding after application of any such prepayment, (ii) the amortization period of three hundred
sixty (360) months less the number of calendar months for which a constant monthly payment was made
hereunder on or prior to the date of the prepayment, and (iii) the Interest Rate.

          1.3. Method and Place of Payment. Except as otherwise specifically provided in this
Agreement, all payments and prepayments under this Agreement and the Notes (including any deposit
into the Cash Management Account pursuant to Section 3.2(c)) shall be made to Lender not
later than 11:00 a.m., New York City time, on the date when due and shall be made in lawful money
of the United States of America by wire transfer in federal or other immediately available funds to
the account specified from time to time by Lender. Any funds received by Lender after such time
shall be deemed to have been paid on the next succeeding Business Day. Lender shall notify
Borrower in writing of any changes in the account to which payments are to be made. If the amount
received from Borrower (or from the Cash Management Account pursuant to Section 3.2(b)) is
less than the sum of all amounts then due and payable hereunder, such amount shall be applied, at
Lender’s sole discretion, either toward the components of the Indebtedness (e.g., interest,
principal and other amounts payable hereunder) and the Notes, in such sequence as Lender shall
elect in its sole discretion, or toward the payment of Property expenses.

          1.4. Taxes.

          (a) Borrower agrees to indemnify Lender against any present or future stamp, documentary or
other similar or related taxes or other similar or related charges now or hereafter imposed,
levied, collected, withheld or assessed by any United States Governmental Authority by reason of
the execution and delivery of the Loan Documents and any consents, waivers, amendments and
enforcement of rights under the Loan Documents.

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          (b) If Borrower is required by law to withhold or deduct any amount from any payment hereunder
in respect of any U.S. Tax, Borrower shall withhold or deduct the appropriate amount, remit such
amount to the appropriate Governmental Authority and pay to each Person to whom there has been an
Assignment or Participation of a Loan and who is not a U.S. Person such additional amounts as are
necessary in order that the net payment of any amount due to such non-U.S. Person hereunder after
deduction for or withholding in respect of any U.S. Tax imposed with respect to such payment (or in
lieu thereof, payment of such U.S. Tax by such non-U.S. Person), will not be less than the amount
stated in this Agreement to be then due and payable; except that the foregoing obligation to pay
such additional amounts shall not apply (i) to any assignee that has not complied with the
obligations contained in Section 9.7(c), (ii) to any U.S. Taxes imposed solely by reason of
the failure by such Person (or, if such Person is not the beneficial owner of the relevant Loan,
such beneficial owner) to comply with applicable certification, information, documentation or other
reporting requirements concerning the nationality, residence, identity or connections with the
United States of America of such Person (or beneficial owner, as the case may be) if such
compliance is required by statute or regulation of the United States of America as a precondition
to relief or exemption from such U.S. Taxes; or (iii) with respect to any Person who is a fiduciary
or partnership or other than the sole beneficial owner of such payment, to any U.S. Tax imposed
with respect to payments made under any Note to a fiduciary or partnership to the extent that the
beneficial owner or member of the partnership would not have been entitled to the additional
amounts if such beneficial owner or member of the partnership had been the holder of the Note.

          (c) Within 30 days after paying any amount from which it is required by law to make any
deduction or withholding, and within 30 days after it is required by law to remit such deduction or
withholding to any relevant taxing or other authority, Borrower shall deliver to such non-U.S.
Person satisfactory evidence of such deduction, withholding or payment (as the case may be).

          1.5. Release. Upon payment of the Indebtedness in full when permitted or required
hereunder, Lender shall execute instruments prepared by Borrower and reasonably satisfactory to
Lender, which, at Borrower’s election: (a) release and discharge all Liens on all Collateral
securing payment of the Indebtedness (subject to Borrower’s obligation to pay any associated fees
and expenses), including all balances in the Collateral Accounts; or (b) assign such Liens (and the
Loan Documents) to a new lender designated by Borrower.

ARTICLE II

DEFEASANCE, ASSUMPTION, AND PROPERTY SUBSTITUTION 

          2.1. Defeasance.

          (a) On any date after the expiration of the Lockout Period, provided no Event of Default is
then continuing and subject to the notice requirement described in Section 2.1(e),
Borrower may from time to time obtain the release of one or more of the Properties from the
Liens of the Loan Documents by Defeasing a portion of the Loan equal to the sum of the Release

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Prices of the Properties so released, provided that (1) DSCR for the Fiscal Quarter then
most recently ended, recalculated to include only income and expense attributable to the Properties
remaining after the release and to exclude the interest expense and principal payments on the
aggregate amount to be prepaid, shall be equal to or greater than the DSCR for the Fiscal Quarter
then most recently ended for all Properties inclusive of the Property to be released, (2) Borrower
shall reimburse Lender for any actual out-of-pocket costs and expenses incurred by Lender in
connection with this Section 2.1 (including the reasonable fees and expenses of legal counsel and
the Servicer); provided further that unless the entire Loan is Defeased, there
shall be not fewer than four (4) Properties continuing to secure the Loan; and provided
further that all sums then due to Lender under the Loan Documents are paid and the
following are delivered to Lender:

     (i) Defeasance Collateral sufficient to provide payments on or prior to, and in any
event as close as possible to, all successive Payment Dates through and including the
Maturity Date in an amount sufficient (x) to pay the interest and principal due on such
Payment Dates in respect of a portion of the Loan equal to the amount Defeased and (y) to
repay the outstanding principal balance of such portion of the Loan on the first Payment
Date in the Prepayment Period;

     (ii) written confirmation from an independent certified public accounting firm
reasonably satisfactory to Lender that such Defeasance Collateral is sufficient to provide
the payments described in clause (i) above;

     (iii) a security agreement, in form and substance reasonably satisfactory to Lender,
creating in favor of Lender a first priority perfected security interest in such Defeasance
Collateral (a “Defeasance Pledge Agreement”);

     (iv) an opinion of counsel for Borrower, in form and substance reasonably satisfactory
to Lender and delivered by counsel reasonably satisfactory to Lender, opining (1) that the
Defeasance Pledge Agreement has been duly authorized and is enforceable against Borrower in
accordance with its terms and that Lender has a perfected first priority security interest
in such Defeasance Collateral; (2) that the Defeasance does not constitute a “significant
modification” of the Loan under Section 1001 of the Code or cause a tax to be imposed on the
Securitization Vehicle; and (3) that the defeasance does not cause the Securitization
Vehicle to be an “investment company” required to be registered under the Investment Company
Act of 1940;

     (v) if the Loan has been securitized, Rating Confirmation with respect to such
Defeasance;

     (vi) instruments reasonably satisfactory to Lender releasing and discharging or
assigning to a third party Lender’s Liens on the Collateral so released (other than the
Defeasance Collateral);

     (vii) such other customary certificates, opinions, documents or instruments as Lender
and the Rating Agencies may reasonably request;

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     (viii) reimbursement for any costs and expenses incurred by Lender in connection
with this Section 2.1 (including Rating Agency and Servicer fees and expenses,
reasonable fees and expenses of legal counsel and any revenue, documentary stamp or
intangible taxes or any other tax or charge due in connection herewith);

     (ix) an amendment to the LTF CO Lease deleting the Property to be released from the
Liens of the Loan Documents from the premises demised to LTF CO under the LTF CO Lease and
reducing the basic rent payable under the LTF CO Lease by $1,978,531.30 per Property
released.

Lender shall reasonably cooperate with Borrower to avoid the incurrence of mortgage recording taxes
in connection with a Defeasance.

          (b) If the Loan is not Defeased in full, Borrower shall execute and deliver all documents
necessary to amend and restate the Note with two substitute Notes (which shall be cross-defaulted
with each other): one note having a principal balance equal to the Defeased portion of the original
Note (the “Defeased Note”) and one note having a principal balance equal to the undefeased
portion of the original Note (the “Undefeased Note”). The Undefeased Notes may be the
subject of a further Defeasance in accordance with the terms of this Section 2.1 (the term
“Note”, as used in this Section 2.1, being deemed to refer to the Undefeased Note that is
the subject of further Defeasance).

          (c) Borrower may cause the Defeased Note to be assumed by a bankruptcy-remote entity
satisfactory to Lender and the Rating Agencies to which Borrower shall transfer all of the
Defeasance Collateral (a “Defeasance Borrower”), provided such Defeasance Borrower
shall have executed and delivered to Lender an assumption agreement in form and substance
reasonably satisfactory to Lender, such Uniform Commercial Code financing statements as may be
reasonably requested by Lender and legal opinions of counsel reasonably acceptable to Lender which
are substantially equivalent to the opinions delivered to Lender on the Closing Date, including new
nonconsolidation opinions reasonably satisfactory to Lender and satisfactory to the Rating
Agencies; and Borrower and the Defeasance Borrower shall have delivered such other documents,
certificates and legal opinions as Lender shall reasonably request.

          (d) At the time of Defeasance, Borrower shall transfer and assign all of its interest in the
Property or Properties released in connection with the Defeasance to a third party, unless the Loan
is Defeased in full and assumed by a Defeasance Borrower in accordance with Section 2.1(c),
in which event Borrower shall be completely released and relieved of all of its obligations under
the Loan Documents except those obligations which by their terms survive the repayment of the Loan.

          (e) Borrower must give Lender and each Rating Agency at least 30 days’ (and not more than 60
days’) prior written notice of any Defeasance under this Section 2.1, specifying the date
on which the Defeasance is to occur. If such Defeasance is not made on such date (x) Borrower’s
notice of Defeasance will be deemed rescinded, and (y) Borrower shall not such date pay to Lender
all reasonable losses, costs and expenses suffered by Lender as a consequence of such rescission.

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          (f) Upon satisfaction of the requirements contained in this Section 2.1, Lender will
execute and deliver to Borrower such instruments, prepared by Borrower and approved by Lender, as
shall be necessary to release the applicable Property or Properties from the Liens of the Loan
Documents or to assign the applicable portion of such Liens and the Defeased portions of the Note
to a third party to the extent necessary to avoid the incurrence of mortgage recording taxes.

          2.2. Assumption. The initial Borrower shall have the right to contemporaneously
Transfer all of the Collateral to a Qualified Successor Borrower that will assume all of the
obligations of Borrower hereunder (an “Assumption”), provided no Event of Default or
material monetary Default is then continuing or would result therefrom and the following conditions
are met to the reasonable satisfaction of Lender:

     (i) such Qualified Successor Borrower shall have executed and delivered to Lender an
assumption agreement, in form and substance reasonably acceptable to Lender, evidencing its
agreement to abide and be bound by the terms of the Loan Documents and containing
representations substantially equivalent to those contained in Article IV, and such
other representations (and evidence of the accuracy of such representations) as the Servicer
shall reasonably request;

     (ii) such Qualified Successor Borrower shall deliver such Uniform Commercial Code
financing statements as may be reasonably requested by Lender;

     (iii) a party satisfactory to Lender in its sole discretion assumes all obligations,
liabilities, guarantees and indemnities of Sponsor and any other guarantor under the Loan
Documents pursuant to documentation satisfactory to Lender;

     (iv) such Qualified Successor Borrower shall have delivered to Lender legal opinions of
counsel reasonably acceptable to Lender which are equivalent to the opinions delivered to
Lender on the Closing Date, including new nonconsolidation opinions which are reasonably
satisfactory to Lender and satisfactory to each of the Rating Agencies; and Borrower and the
Qualified Successor Borrower shall have delivered such other documents, certificates and
legal opinions as Lender shall reasonably request;

     (v) such Qualified Successor Borrower shall have delivered to Lender all documents
reasonably requested by it relating to the existence of such Qualified Successor Borrower
and the due authorization of the Qualified Successor Borrower to assume the Loan and to
execute and deliver the documents described in this Section 2.2, each in form and
substance reasonably satisfactory to Lender, including a certified copy
of the applicable resolutions from all appropriate persons, certified copies of the
organizational documents of the Qualified Successor Borrower, together with all amendments
thereto, and certificates of good standing or existence for the Qualified Successor Borrower
issued as of a recent date by its state of organization and each other state where such
entity, by the nature of its business, is required to qualify or register;

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     (vi) the Qualified Title Insurance Policy shall have been properly endorsed to reflect
the Transfer of the Properties to the Qualified Successor Borrower;

     (vii) Rating Confirmation shall have been received with respect to the legal structure
of the successor borrower, the documentation of the Assumption and the related legal
opinions; and

     (viii) Borrower shall have paid to Lender a nonrefundable assumption fee in an amount
equal to 1% of the Loan Amount, provided that such nonrefundable assumption fee shall be an
amount equal to 0.5% of the Loan Amount for the first such Assumption, and Borrower shall
have reimbursed Lender for its reasonable out-of-pocket costs and expenses incurred in
connection with such assumption.

          2.3. Substitution.

          (a) Subject to the terms and conditions set forth in this Section 2.3, so long as no
Event of Default is then continuing, Borrower may, from time to time, replace Properties
(individually, a “Replaced Property” and collectively, the “Replaced Properties”)
with Qualified Substitute Properties (a “Property Substitution”), provided, in the
case of each Property Substitution, the following conditions are met:

     (i) all conditions described in Section 8.2 shall have been satisfied with respect to
each Qualified Substitute Property;

     (ii) the date of the Property Substitution shall not be later than the ninth
anniversary of the Closing Date;

     (iii) the aggregate initial Allocated Loan Amounts of all Replaced Properties during
the term of the Loan shall not exceed 20% of the Loan Amount unless Rating Confirmation is
received; and the aggregate initial Allocated Loan Amount of all Replaced Properties during
the term of the Loan shall in any event not exceed 50% of the Loan Amount, regardless of
whether Rating Confirmation and the foregoing consents are received with respect thereto;

     (iv) construction of the Qualified Substitute Property shall be completed, and the
Qualified Substitute Property shall have been added to the premises demised to LTF CO under
the LTF CO Lease in lieu of the Replaced Property), which must be in occupancy, open for
business and have commenced payment of rent;

     (v) the sum of the market values of the proposed Qualified Substitute Properties shall
equal or exceed the sum of the Initial Values of the corresponding
Replaced Properties, based on Appraisals obtained by and certified to Lender and
prepared within the six (6) month period prior the Property Substitution;

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     (vi) after giving effect thereto, (A) the total aggregate Pooled Properties Revenues,
calculated on a trailing 12 month basis, shall be equal to or greater than the total
aggregate Pooled Properties Revenues, calculated on a trailing 12 month basis, immediately
prior to the Property Substitution, (B) the Earnings Before Interest, Taxes, Depreciation,
Amortization and Rent, calculated on a trailing 12 month basis and not including any
allocations of shared expenses or corporate overhead, of LTF CO attributable to the
Properties (“Pooled Properties EBITDAR”) shall be equal to or greater than the
Pooled Properties EBITDAR immediately prior to the Property Substitution, and (C) the number
of memberships at the Properties shall be equal to or greater than the number of memberships
immediately prior to the Property Substitution;

     (vii) after giving effect thereto, DSCR for the Test Period then most recently ended,
recalculated to include only income and expense attributable to the remaining Properties
(including the Qualified Substitute Properties, based on operating statements and rent rolls
certified as true and correct by an officer of Borrower), shall be equal to or greater than
the DSCR immediately prior to the Property Substitution;

     (viii) after giving effect thereto, the NOI Concentration Test shall be satisfied;

     (ix) after giving effect thereto, the number of individual Properties shall be not less
than 75% of the number of individual Properties immediately prior thereto, and shall in any
event not be less than four (4);

     (x) after giving effect thereto and if any Leases exist other than the LTF CO Lease,
the weighted average remaining term of all Leases at the Properties, weighted on the basis
of square footage leased, shall not be less than (x) the weighted average remaining term of
all Leases at the Properties immediately prior thereto, calculated in the same manner, minus
(y) three months;

     (xi) no Property shall be released from the Collateral if any Lease at any Property
that would remain part of the Collateral grants to the Tenant thereunder a right to lease
space at the Property proposed to be released or if as a result of such release the
representations contained in Sections 4.27 and 4.30 would no longer be true
in all material respects;

     (xii) the Borrower shall have delivered to Lender a certificate representing and
warranting to Lender that the proposed Property Substitution is not reasonably likely to
have a Material Adverse Effect;

     (xiii) the property conditions report, environmental site assessment and other
materials furnished to Lender to comply with Lender’s standard property underwriting
procedures with respect to the proposed Qualified Substitute Property, including such

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materials as Lender shall reasonably require to evaluate the demographics, psychographics
and market competition risk, shall be not less favorable than those
relating to the Replaced Property and otherwise reasonably satisfactory to Lender in
all material respects;

     (xiv) the Borrower shall have paid or reimbursed Lender for all reasonable
out-of-pocket costs and expenses actually incurred by Lender in connection with the
foregoing (including Rating Agency and Servicer out of pocket expenses and reasonable
attorneys’ fees and disbursements); and

     (xv) the Borrower shall have delivered to Lender an amendment to the LTF CO Lease
deleting the Replaced Property from and adding the Qualified Substitute Property to the
premises demised to LTF CO under the LTF CO Lease without adjustment of the basic rent
payable thereunder.

          (b) Borrower must give Lender at least 30 days’ prior written notice of any Property
Substitution under Section 2.3(a), identifying the proposed Replaced Property or
Properties, the proposed Qualified Substitute Property or Properties and the proposed date of the
Property Substitution (which date may be extended provided that Borrower gives Lender reasonable
prior written notice). If such Property Substitution does not occur on such date (as same may have
been extended), (x) Borrower’s notice will be deemed rescinded, and (y) Borrower shall on such date
pay to Lender all reasonable expenses actually incurred by Lender in connection therewith.

          (c) Upon the occurrence of the Property Substitution in accordance herewith, Lender shall
execute instruments prepared by Borrower and reasonably satisfactory to Lender releasing and
discharging each Replaced Property from the Liens of the Loan Documents.

          (d) Borrower must acquire title to the Substitute Property.

          2.4 Voluntary Prepayment.

          (a) Borrower shall be prohibited from prepaying the Loan, in whole or in part, during the
Lockout Period.

          (b) Provided no Event of Default is then continuing, on any Payment Date after the expiration
of the Lockout Period, or on any other date but in such case together with the payment of interest
to the next Payment Date as provided in Section 1.2(b), and in either event upon the prior notice
required by Section 1.2(b), Borrower may prepay the Loan (inclusive of any other sum due hereunder
or under any other Loan Document) in full (but not in part), which prepayment must be accompanied
by payment of the applicable Yield Maintenance Premium.

          (c) So long as no Event of Default is then continuing and all amounts then due and owing to
the Lender have been paid in full, Borrower may from time to time following the Lockout Period
obtain the release of one or more of the Properties from the Liens of the Loan

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Documents provided
that (1) at the time of such release, Borrower shall prepay the Loan, in accordance with Section
1.2(b) and this Section 2.4, in an amount equal to the applicable Release Price, (2) DSCR for the
Fiscal Quarter then most recently ended, recalculated to include only income and expense
attributable to the Properties remaining after the release and to exclude the
interest expense and principal payments on the aggregate amount to be prepaid, shall be equal
to or greater than the DSCR for the Fiscal Quarter then most recently ended for all Properties
inclusive of the Property to be released, (3) Borrower shall reimburse Lender for any actual
out-of-pocket costs and expenses incurred by Lender in connection with this Section 2.4 (including
the reasonable fees and expenses of legal counsel and the Servicer), (4) the Property or Properties
to be released are conveyed, concurrently with the release, to a legal entity other than Borrower,
(5) unless the entire Loan is prepaid, there shall be not fewer than four (4) Properties continuing
to secure the Loan, and (6) Borrower has delivered to Lender an amendment to the LTF CO Lease
deleting the Property to be released from the Liens of the Loan Documents from the premises demised
to LTF CO under the LTF CO Lease and reducing the basic rent payable under the LTF CO Lease by
$1,978,531.30 per Property released. Upon satisfaction of the requirements set forth in this
Section 2.4, Lender will execute and deliver to Borrower such instruments, prepared by Borrower and
reasonably approved by Lender, as shall be necessary to release the applicable Property from the
Liens of the Loan Documents and any funds in the Collateral Accounts relating solely to the
applicable Property.

          (d) If the Note has been componentized into multiple Note Components, all prepayments of the
Loan made in accordance with this Section 2.1 shall be applied to the Note Components pro
rata in accordance with their then outstanding principal balances so that the blended
Interest Rate continues to equal the Initial Interest Rate.

ARTICLE III

ACCOUNTS

          3.1. Collection Account.

          (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Lockbox Bank a lockbox and a collection account into which income from the Properties will be
collected and deposited (the “Collection Account”). As a condition precedent to the
closing of the Loan, Borrower shall cause the Lockbox Bank to execute and deliver a Blocked Account
Control Agreement (With Lockbox Services) (the “Collection Account Agreement”) in the form
of Exhibit A-1 attached hereto, which provides, inter alia, that there shall be
accumulated in the Collection Account until the balance therein equals the amount (the “Minimum
Balance”) necessary to pay to Lender on the next succeeding Payment Date the aggregate amount
required to be paid to or reserved with Lender on the next Payment Date pursuant hereto. Funds
deposited into the Collection Account Agreement in excess of the Minimum Balance shall be remitted
to an account specified by Borrower, at the end of each Business Day (or, at Borrower’s election,
on a less frequent basis), provided, however, that

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Lender shall terminate such
remittances during the continuance of an Event of Default or Escrow Period upon notice to the
Lockbox Bank. Lender may notify the Lockbox Bank at any time of any change in the Minimum Balance.
The fees and expenses of the Lockbox Bank shall be paid by Borrower.

          (b) On or prior to the Closing Date, Borrower shall deliver to each Tenant in the Properties a
written notice (a “Tenant Notice”) in the form of Exhibit C instructing that (i)
all payments under the Leases shall thereafter be transmitted by them directly to, and deposited
directly into, the Collection Account and (ii) such instruction may not be rescinded unless and
until such Tenant receives from Borrower or Lender a copy of Lender’s written consent to such
rescission. Borrower shall send a copy of each such written notice to Lender and shall redeliver
such notices to each Tenant until such time as such Tenant complies therewith. Borrower shall cause
all cash Revenues relating to the Properties and all other money received by Borrower or the
Approved Property Manager with respect to the Properties (other than tenant security deposits
required to be held in escrow accounts) to be deposited in the Collection Account by the end of the
first Business Day following Borrower’s or the Approved Property Manager’s receipt thereof.

          (c) Lender shall have the right at any time during the continuance of an Event of Default,
upon not less than 30 days’ prior written notice to Borrower, to replace the Lockbox Bank with any
other financial institution in which Eligible Accounts may be maintained which will promptly
execute and deliver to Lender a Collection Account Agreement in form and substance satisfactory to
Lender (and Borrower shall cooperate with Lender in connection with such transfer, including
delivery of an updated Tenant Notice to each Tenant).

          (d) If on any Payment Date the amount in the Collection Account shall be less than the Minimum
Balance, Borrower shall deposit into the Collection Account on such Payment Date the amount of such
deficiency. If Borrower shall fail to make such deposit, the same shall constitute an Event of
Default and, in addition to all other rights and remedies provided for under the Loan Documents,
Lender may disburse and apply the amounts in the Collateral Accounts in accordance with Section
3.10(c).

          3.2. Cash Management Account.

          (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank a deposit account into which funds transferred by the Lockbox Bank from the
Collection Account while an Event of Default or an Escrow Period is continuing will be collected
and deposited (the “Cash Management Account”). As a condition precedent to the closing of
the Loan, Borrower shall cause the Cash Management Bank to execute and deliver a Cash Management
Agreement (the “Cash Management Agreement”) in the form of Exhibit A-2 attached hereto
which provides, inter alia, that no party other than Lender and Servicer shall have
the right to withdraw funds from the Cash Management Account. The fees and expenses of the Cash
Management Bank shall be paid by Borrower.

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          (b) On each Payment Date during the continuance of an Event of Default or an Escrow Period,
Lender shall transfer amounts from the Cash Management Account, to the extent available therein, to
make the following payments in the following order of priority:

     (i) to the Basic Carrying Costs Escrow Account, the amounts then required to be
deposited therein pursuant to Section 3.4;

     (ii) to Lender, the amount of all scheduled or delinquent interest and principal on the
Loan and all other amounts then due and payable under the Loan Documents (with any amounts
in respect of principal paid last);

     (iii) to Borrower, an amount equal to the Budgeted Operating Expenses, if any, for the
month in which such Payment Date occurs, provided that the amounts disbursed to
Borrower pursuant to this clause (iii) shall be used by Borrower solely to pay Budgeted
Operating Expenses for such month (Borrower agreeing that, in the event that such Budgeted
Operating Expenses exceed the actual operating expenses for such month, such excess amounts
shall be remitted by Borrower to the Cash Management Account prior to the next succeeding
Payment Date) and provided further that, no amounts will be disbursed to
Borrower in respect of the fees of the Approved Property Manager for so long as Borrower or
an Affiliate is the Approved Property Manager, and if another property manager becomes the
Approved Property Manager, no amounts will be disbursed to Borrower in respect of the fees
of such Approved Property Manager to the extent such fees exceed 3% of Operating Income;

     (iv) to the Capital Expenditure Reserve Account, the amounts required to be deposited
therein pursuant to Section 3.6; and

     (v) all remaining amounts to the Excess Cash Flow Reserve Account.

          (c) If on any Payment Date the amount in the Cash Management Account shall be insufficient to
make all of the transfers described in Section 3.2(b)(i) through (iv), Borrower
shall deposit into the Cash Management Account on such Payment Date the amount of such deficiency.
If Borrower shall fail to make such deposit, the same shall constitute an Event of Default and, in
addition to all other rights and remedies provided for under the Loan Documents, Lender may
disburse and apply the amounts in the Collateral Accounts in accordance with Section
3.10(c).

          (d) Lender shall have the right at any time, upon not less than 30 days’ prior written notice
to Borrower, to replace the Cash Management Bank with any other financial institution in which
Eligible Accounts may be maintained which will promptly execute and deliver to Lender a Cash
Management Agreement (and Borrower shall cooperate with Lender in connection with such transfer).

          3.3 Loss Proceeds Account.

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          (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of depositing any Loss Proceeds (the “Loss
Proceeds Account”).

          (b) Provided no Event of Default is continuing, funds in the Loss Proceeds account shall be
applied in accordance with Section 5.16.

          3.4. Basic Carrying Costs Escrow Account.

          (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of reserving amounts payable by Borrower in respect
of Taxes and insurance premiums (the “Basic Carrying Costs Escrow Account”).

          (b) On the Closing Date, provided all Taxes in respect of the Properties are then paid
currently, and thereafter for so long as Taxes are paid in accordance with the requirements of this
Agreement, and evidence of such payment is delivered to Lender at least thirty (30) days prior to
the delinquency of such Taxes, and provided no Event of Default has occurred hereunder or under any
of the Loan Documents, Borrower’s obligation to make monthly deposits into the Basic Carrying Costs
Escrow Account with respect to Taxes shall be suspended. On the Closing Date, provided Borrower
has delivered to Lender the evidence that Borrower maintains the insurance required by the terms of
this Agreement with respect to each Property and the premiums therefor have been paid, and
thereafter for so long as the insurance required by this Agreement is maintained, Borrower provides
evidence of renewal or replacement (with insurance satisfying the requirements of this Agreement)
at least thirty (30) days prior to expiration and binders, endorsements and certificates are
delivered to Lender within thirty (30) days following the renewal dates, and provided no Event of
Default has occurred hereunder or under any of the Loan Documents, Borrower’s obligation to make
monthly deposits into the Basic Carrying Costs Escrow Account with respect to insurance premiums
shall be suspended.

          (c) If at any time any of the conditions set forth in Section 3.4(b) to the suspension of the
obligation to fund the Basic Carrying Costs Escrow Account shall fail, the Borrower shall fund the
Basic Carrying Costs Escrow Account with an amount equal to (i) an amount sufficient to pay all
Taxes by the 30th day prior to the date they come due, assuming subsequent monthly
fundings on Payment Dates of 1/12 of projected annual Taxes, plus (ii) an amount sufficient
to pay all insurance premiums by the 30th day prior to the date they come due, assuming
subsequent monthly fundings on Payment Dates of 1/12 of projected annual insurance premiums. On
each subsequent Payment Date, an additional deposit shall be made therein in an amount equal to the
sum of:

     (A) 1/12 of the Taxes that Lender reasonably estimates, based on information provided
by Borrower, will be payable during the next ensuing 12 months, plus

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     (B) 1/12 of the insurance premiums that Lender reasonably estimates, based on
information provided by Borrower, will be payable during the next ensuing 12 months;

provided, however, that if at any time Lender reasonably determines that the amount
in the Basic Carrying Costs Escrow Account will not be sufficient to accumulate (upon payment of
subsequent monthly amounts in accordance with the provisions of this Agreement) the full amount of
all installments of Taxes and insurance premiums by the date on which such amounts come due, then
Lender shall notify Borrower of such determination and Borrower shall increase
its monthly payments to the Basic Carrying Costs Escrow Account by the amount that Lender
reasonably estimates is sufficient to achieve such accumulation.

          (d) Borrower shall provide Lender with copies of all tax and insurance bills relating to each
Property promptly after Borrower’s receipt thereof. If the Basic Carrying Costs Escrow Account is
then being funded pursuant to Section 3.4(c), Lender will apply amounts in the Basic
Carrying Costs Escrow Account toward the purposes for which such amounts are deposited therein. In
connection with the making of any payment from the Basic Carrying Costs Escrow Account, Lender may
cause such payment to be made according to any bill, statement or estimate procured from the
appropriate public office or insurance carrier, without inquiry into the accuracy of such bill,
statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or
title or claim thereof unless given written advance notice by Borrower of such inaccuracy,
invalidity or other contest.

          3.5. TI/LC Reserve Account. [intentionally omitted]

          3.6. Capital Expenditure Reserve Account.

          (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of reserving amounts in respect of Capital
Expenditures when and if it is required to do so pursuant to this Section 3.6 (the
“Capital Expenditure Reserve Account”).

          (b) Borrower will not be required to make any payments for deposit into the Capital
Expenditure Reserve Account unless (i) an Event of Default exists, or (ii) an inspection of one or
more of the Properties reasonably indicates that Borrower is failing (whether or not such failure
constitutes an Event of Default hereunder) to maintain such Property or Properties in a good and
safe condition and repair and in keeping with the condition and repair of properties of a similar
use, value, age, nature and construction, and Borrower fails to rectify such condition within one
hundred eighty (180) days following notice from Lender. On each Payment Date during the existence
of an Event of Default or such failure to maintain, there shall be deposited into the Capital
Expenditure Reserve Account an amount equal to the Monthly Capital Expenditure Reserve Amount.

          (c) Upon the request of Borrower at any time that no Event of Default is continuing (but not
more often than once per calendar month), Lender shall cause disbursements to Borrower from the
Capital Expenditure Reserve Account to reimburse Borrower for Capital Expenditures that are
consistent with the Approved Annual Budget; provided that:

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     (i) Borrower shall deliver to Lender invoices evidencing that the costs for which such
disbursements are requested are due and payable;

     (ii) Borrower shall deliver to Lender an Officer’s Certificate confirming that all such
costs have been previously paid by Borrower or will be paid from the proceeds of the
requested disbursement; and

     (iii) Lender may condition the making of a requested disbursement on (1) reasonable
evidence establishing that Borrower has applied any amounts previously received by it in
accordance with this Section for the expenses to which specific draws made hereunder relate,
(2) reasonably satisfactory site inspections, and (3) receipt of lien releases and waivers
from any contractors, subcontractors and others with respect to such amounts.

          (d) Upon the cure of the Event of Default, or (provided no Event of Default is then continuing
and no Escrow Period is then continuing) upon correction to Lender’s reasonable satisfaction of the
failure to maintain the Property or Properties, Lender shall remit to Borrower the amount then
contained in the Capital Expenditure Reserve Account.

          3.7. [intentionally omitted]

          3.8. [intentionally omitted]

          3.9 Excess Cash Flow Reserve Account.

          (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the deposit of amounts required to be deposited therein in
accordance with Section 3.2(b)(v) (the “Excess Cash Flow Reserve Account”).

          (b) Provided that no Event of Default is then continuing, Lender shall release to Borrower all
amounts then contained in the Excess Cash Flow Reserve Account on the first Payment Date after
Borrower delivers to Lender evidence reasonably satisfactory to Lender establishing that no Trigger
Period is then continuing. Such a release shall not preclude the subsequent commencement of a
Trigger Period and the deposit of amounts into the Excess Cash Flow Reserve Account as set forth in
Section 3.2(b)(v).

          3.10. Account Collateral.

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          (a) Borrower hereby grants a perfected first-priority security interest in favor of Lender in
and to the Account Collateral as security for the Indebtedness, together with all rights of a
secured party with respect thereto. Each Collateral Account shall be an Eligible Account under the
sole dominion and control of Lender and shall be in the name of Borrower, as pledgor, and Lender,
as pledgee. Borrower shall have no right to make withdrawals from any of the Collateral Accounts.
Funds in the Collateral Accounts shall not be commingled with any other monies at any time.
Borrower shall execute any additional documents that Lender in its reasonable discretion may
require and shall provide all other evidence reasonably requested by Lender to evidence or perfect
its first-priority security interest in the Account Collateral. Funds in the Collateral Account
shall be invested at Lender’s discretion only in Permitted Investments. All income and gains from
the investment of funds in the Collateral Accounts other than the Basic Carrying Costs Escrow
Account shall be retained in the Collateral Accounts from which
they were derived. Unless otherwise required by applicable law, all income and gains from the
investment of funds in the Basic Carrying Costs Escrow Account shall be for the account of Lender
in consideration of its administration of such Collateral Account, and Lender shall have the right
at any time to cause the Cash Management Bank to remit such amounts to Lender. After the Loan and
all other Indebtedness have been paid in full, the Collateral Accounts shall be closed and the
balances therein, if any, shall be paid to Borrower.

          (b) The insufficiency of amounts contained in the Collateral Accounts shall not relieve
Borrower from its obligation to fulfill all covenants contained in the Loan Documents.

          (c) During the continuance of an Event of Default, Lender may, in its sole discretion, apply
funds in the Collateral Accounts, and funds resulting from the liquidation of Permitted Investments
contained in the Collateral Accounts, either toward the components of the Indebtedness
(e.g., interest, principal and other amounts payable hereunder), the Loan and the Notes, in
such sequence as Lender shall elect in its sole discretion, and/or toward the payment of Taxes,
Operating Expenses and Capital Expenditures.

          3.11. Bankruptcy. Borrower and Lender acknowledge and agree that upon the filing of a
bankruptcy petition by or against Borrower under the Bankruptcy Code, the Account Collateral and
the Revenues (whether then already in the Collateral Accounts, or then due or becoming due
thereafter) shall be deemed not to be property of Borrower’s bankruptcy estate within the meaning
of Section 541 of the Bankruptcy Code. If, however, a court of competent jurisdiction determines
that, notwithstanding the foregoing characterization of the Account Collateral and the Revenues by
Borrower and Lender, the Account Collateral and/or the Revenues do constitute property of
Borrower’s bankruptcy estate, then Borrower and Lender further acknowledge and agree that all such
Revenues, whether due and payable before or after the filing of the petition, are and shall be cash
collateral of Lender. Borrower acknowledges that Lender does not consent to Borrower’s use of such
cash collateral and that, in the event Lender elects (in its sole discretion) to give such consent,
such consent shall only be effective if given in writing signed by Lender. Except as provided in
the immediately preceding sentence, Borrower shall not have the right to use or apply or require
the use or application of such cash collateral (i) unless Borrower shall have received a court
order authorizing the use of the same, and (ii) Borrower shall have provided such adequate
protection to Lender as shall be required by the bankruptcy court in accordance with the Bankruptcy
Code.

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ARTICLE IV

REPRESENTATIONS

          Borrower represents to Lender that, as of the Closing Date, and, with respect to each
Qualified Substitute Property, as of the date of such Property Substitution, except as set forth in
the Exception Report or, with respect to a Qualified Substitute Property, as hereafter consented to
by Lender in its reasonable discretion:

          4.1. Organization.

          (a) Borrower is duly organized, validly existing and in good standing under the laws of the
State of Delaware, and is in good standing in each other jurisdiction where ownership of its
properties or the conduct of its business requires it to be so, and Borrower has all power and
authority under such laws and its organizational documents and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now conducted.

          Borrower’s sole managing member, LFT CMBS Managing Member, Inc., a Delaware corporation, is a
Single-Purpose Equityholder that is duly organized, validly existing and in good standing under the
laws of the State of Delaware, and is in good standing in each other jurisdiction where ownership
of its assets or the conduct of its business requires it to be so, and such general partner has all
power and authority under such laws and its organizational documents and all material governmental
licenses, authorizations, consents and approvals required to carry on its business as now
conducted.

          (b) Borrower has no subsidiaries and does not own any equity interest in any other Person.
Borrower’s Single-Purpose Equityholder has no subsidiaries and does not own any equity interest in
any other Person (other than Borrower).

          (c) The organizational chart contained in Schedule H is true and correct as of the
date hereof.

          4.2. Authorization. Borrower has the power and authority to enter into this Agreement
and the other Loan Documents, to perform its obligations hereunder and thereunder and to consummate
the transactions contemplated by the Loan Documents and has by proper action duly authorized the
execution and delivery of the Loan Documents.

          4.3. No Conflicts. Neither the execution and delivery of the Loan Documents, nor the
consummation of the transactions contemplated therein, nor performance of and compliance with the
terms and provisions thereof will (i) violate or conflict with any provision of its formation and
governance documents, (ii) violate any law, regulation (including Regulation U, Regulation X or
Regulation T), order, writ, judgment, injunction, decree or permit applicable to it, (iii) violate
or conflict with contractual provisions of, or cause an event of default under, any indenture, loan
agreement, mortgage, contract or other Material Agreement to which Borrower or Sponsor is a party
or by which Borrower or Sponsor may be bound, or (iv) result in or require the creation of any Lien
or other charge or encumbrance upon or with respect to the Collateral in favor of any party other
than Lender.

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          4.4. Consents. No consent, approval, authorization or order of, or qualification
with, any court or Governmental Authority is required in connection with the execution, delivery or
performance by Borrower of this Agreement or the other Loan Documents, except for any of the
foregoing which have already been obtained.

          4.5. Enforceable Obligations. This Agreement and the other Loan Documents have been
duly executed and delivered by Borrower and constitute Borrower’s legal, valid and binding
obligations, enforceable in accordance with their respective terms, subject to bankruptcy,
insolvency and similar laws of general applicability relating to or affecting creditors’ rights and
to general equity principles. The Loan Documents are not subject to any right of rescission,
set-off, counterclaim or defense by Borrower, including the defense of usury.

          4.6. No Default. No Default or Event of Default will exist immediately following the
making of the Loan.

          4.7. Payment of Taxes. Borrower has filed, or caused to be filed, all tax returns
(federal, state, local and foreign) required to be filed and paid all amounts of taxes due
(including interest and penalties) except for taxes which are not yet delinquent and has paid all
other taxes, fees, assessments and other governmental charges (including mortgage recording taxes,
documentary stamp taxes and intangible taxes) owing by it necessary to preserve the Liens in favor
of Lender.

          4.8. Compliance with Law. Borrower, each Property and the uses thereof comply in all
material respects with all applicable Insurance Requirements and Legal Requirements, including
building and zoning ordinances and codes. Each Property conforms to current zoning requirements
(including requirements relating to parking) and is neither an illegal nor a legal nonconforming
use. Borrower is not in default or violation of any order, writ, injunction, decree or demand of
any Governmental Authority the violation of which could adversely affect any Property or the
condition (financial or otherwise) or business of Borrower. There has not been committed by or on
behalf of Borrower or, to the best of Borrower’s knowledge, any other person in occupancy of or
involved with the operation or use of any Property, any act or omission affording any federal
Governmental Authority or any state or local Governmental Authority the right of forfeiture as
against any Property or any portion thereof or any monies paid in performance of its obligations
under any of the Loan Documents. Neither Borrower nor Sponsor has purchased any portion of the
Properties with proceeds of any illegal activity.

          4.9. ERISA. Neither Borrower nor any ERISA Affiliate of Borrower has incurred or
could be subjected to any liability under Title IV or Section 302 of ERISA or Section 412 of the
Code or maintains or contributes to, or is or has been required to maintain or contribute to, any
employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of
ERISA or Section 412 of the Code. The consummation of the transactions contemplated by this
Agreement will not constitute or result in any non-exempt prohibited transaction under Section 406
of ERISA, Section 4975 of the Code or substantially similar provisions under federal, state or
local laws, rules or regulations.

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          4.10. Investment Company Act. Borrower is not an “investment company”, or a company
“controlled” by an “investment company”, registered or required to be registered under the
Investment Company Act of 1940, as amended.

          4.11. No Bankruptcy Filing. Borrower is not contemplating either the filing of a
petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all
or a major portion of its assets or property. Borrower does not have knowledge of any Person
contemplating the filing of any such petition against it.

          4.12. Other Debt. Borrower does not have outstanding any Debt other than Permitted
Debt.

          4.13. Litigation. There are no actions, suits, proceedings, arbitrations or
governmental investigations by or before any Governmental Authority or other court or agency now
pending, and to the best of Borrower’s knowledge there are no such actions, suits, proceedings,
arbitrations or governmental investigations threatened, against or affecting Borrower or any
Property, in each case, except as listed in the Exception Report (and none of the matters listed in
the Exception Report, even if determined against Borrower or such Property, could reasonably be
expected to result in a Material Adverse Effect).

          4.14. Leases; Material Agreements.

          (a) Borrower has delivered to Lender a true and complete copy of the LTF CO Lease, of the
guaranty of the LTF CO Lease by Sponsor, and of any other presently existing Lease. No person has
any possessory interest in any of the Properties or right to occupy the same except under and
pursuant to the provisions of the Leases. The rent roll attached to this Agreement as Schedule
F (the “Rent Roll”) is true and correct as of the Closing Date. Except as indicated on
the Rent Roll or the Exception Report, no security deposits are being held by Borrower, no Tenant
has any extension, renewal or termination options, no Tenant or other party has any option, right
of first refusal or similar preferential right to purchase or lease all or any portion of any
Property, no fixed rent has been paid more than 30 days in advance of its due date and no payments
of rent are more than 30 days delinquent.

          (b) Except as indicated in Schedule E, all work to be performed by the landlord under
the Leases has been substantially performed, all contributions to be made by the landlord to the
Tenants thereunder have been made, all other conditions to each Tenant’s obligations thereunder
have been satisfied, no Tenant has the right to require Borrower to perform or finance Tenant
Improvements or Material Alterations and no Leasing Commissions are owed or would be owed upon the
exercise of any Tenant’s existing renewal or expansion options.

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          (c) There are no Material Agreements except as described in Schedule G. Borrower has
made available to Lender true and complete copies of all Material Agreements. Each Material
Agreement has been entered into at arm’s length in the ordinary course of business by or on behalf
of Borrower.

          (d) The Leases and the Material Agreements are in full force and effect and there are no
defaults thereunder by Borrower or, to Borrower’s best knowledge, any other party
thereto. Borrower is not in default in any material respect in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any Permitted
Encumbrance or any other agreement or instrument to which it is a party or by which it or any of
the Properties is bound.

          4.15. Full and Accurate Disclosure. To Borrower’s knowledge, no statement of fact
heretofore delivered by Sponsor or Borrower to Lender in writing in respect of the Properties or
the Borrower contains any untrue statement of a material fact or omits to state any material fact
necessary to make statements contained therein not misleading unless subsequently corrected. There
is no fact presently actually known to Borrower which has not been disclosed to Lender which is
reasonably likely to result in a Material Adverse Effect.

          4.16. Financial Condition. All financial data concerning Borrower and the Properties
heretofore provided to Lender fairly presents in accordance with GAAP the financial position of
Borrower in all material respects, as of the date on which it was made, and does not omit to state
any fact necessary to make statements contained herein or therein not misleading. Since the
delivery of such data, except as otherwise disclosed in writing to Lender, there have occurred no
changes or circumstances which have had or are reasonably likely to result in a Material Adverse
Effect.

          4.17. Single-Purpose Requirements. Each of Borrower and its Single-Purpose
Equityholder is now, and has always been since its formation, a Single-Purpose Entity.

          4.18. [Intentionally Omitted].

          4.19. Not Foreign Person. Borrower is not a “foreign person” within the meaning of
Section 1445(f)(3) of the Code.

          4.20. Labor Matters. Borrower is not a party to any collective bargaining agreements.

          4.21. Title. Borrower owns good, marketable and insurable title to the Properties and
good and marketable title to the related personal property, to the Collateral Accounts and to any
other Collateral, in each case free and clear of all Liens whatsoever except the Permitted
Encumbrances. The Mortgages, when properly recorded in the appropriate records, together with any
Uniform Commercial Code financing statements required to be filed in connection therewith, will
create (i) valid, perfected first priority Liens on the Properties and the rents therefrom,
enforceable as such against creditors of and purchasers from Borrower and

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subject only to Permitted
Encumbrances, and (ii) perfected Liens (pursuant to the Uniform Commercial Code of the State of
Delaware) in and to all personalty, all in accordance with the terms thereof, in each case subject
only to any applicable Permitted Encumbrances. The Permitted Encumbrances do not and will not
materially and adversely affect or interfere with the value, or current use or operation, of the
Properties, or the security intended to be provided by the Mortgage or Borrower’s ability to
repay the Indebtedness in accordance with the terms of the Loan Documents. Except as insured
over by a Qualified Title Insurance Policy, there are no claims for payment for work, labor or
materials affecting the Properties which are or may become a Lien prior to, or of equal priority
with, the Liens created by the Loan Documents. No creditor of Borrower other than Lender has in
its possession any goods that constitute or evidence the Collateral.

          4.22. No Encroachments. Except as shown on the applicable Qualified Survey, all of
the improvements on each Property lie wholly within the boundaries and building restriction lines
of the such Property, and no improvements on adjoining property encroach upon any Property, and no
easements or other encumbrances upon any Property encroach upon any of the improvements, so as, in
either case, to adversely affect the value or marketability of the applicable Property, except
those which are insured against by a Qualified Title Insurance Policy.

          4.23. Physical Condition.

          (a) Except for matters set forth in the Engineering Reports, each Property (including
sidewalks, storm drainage system, roof, plumbing system, HVAC system, fire protection system,
electrical system, equipment, elevators, exterior sidings and doors, irrigation system and all
structural components) is in good condition, order and repair in all respects material to its use,
operation or value.

          (b) Borrower is not aware of any material structural or other material defect or damages in
any of the Properties, whether latent or otherwise.

          (c) Borrower has not received and is not aware of any other party’s receipt of notice from any
insurance company or bonding company of any defects or inadequacies in any of the Properties which
would, alone or in the aggregate, adversely affect in any material respect 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.

          4.24. Fraudulent Conveyance. Borrower has not entered into the Transaction or any of
the Loan Documents with the actual intent to hinder, delay or defraud any creditor. Borrower has
received reasonably equivalent value in exchange for its obligations under the Loan Documents. On
the Closing Date, the fair salable value of Borrower’s aggregate assets is and will, immediately
following the making of the Loan and the use and disbursement of the proceeds thereof, be greater
than Borrower’s probable aggregate liabilities (including subordinated, unliquidated, disputed and
Contingent Obligations). Borrower’s aggregate assets do not and, immediately following the making
of the Loan and the use and disbursement of the

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proceeds thereof will not, constitute unreasonably
small capital to carry out its business as conducted or as proposed to be conducted. Borrower does
not intend to, and does not believe that it will, incur debts and liabilities (including Contingent
Obligations and other commitments) beyond its ability to pay such debts as they mature (taking into
account the timing and amounts to be payable on or in respect of obligations of Borrower).

          4.25. Management. No property management agreements are in effect with respect to the
Properties.

          4.26. Condemnation. No Condemnation has been commenced or, to Borrower’s knowledge,
is contemplated with respect to all or any material portion of any of the Properties or for the
relocation of roadways providing access to any of the Properties.

          4.27. Utilities and Public Access. The following statements are accurate in all
material respects:

     (i) Each Property has adequate rights of access to dedicated public ways (and makes no
material use of any means of access or egress that is not pursuant to such dedicated public
ways or recorded, irrevocable rights-of-way or easements) and is adequately served by all
public utilities necessary to the continued use and enjoyment of such Property as presently
used and enjoyed.

     (ii) All such utilities are located in the public right-of-way abutting the premises or
in areas (“Easement Areas”) that are the subject of recorded irrevocable easement
agreements which benefit such Property and which are listed in Schedule A of the applicable
Qualified Title Insurance Policy so as to be included in the coverage thereof.

     (iii) All such utilities are connected so as to serve the applicable Property without
passing over other property other than Easement Areas.

     (iv) All roads necessary for the full utilization of each Property for its current
purpose have been completed and are either part of such Property (by way of deed, easement
or ground lease) or dedicated to public use and accepted by all Governmental Authorities.

          4.28. Environmental Matters. Except as disclosed in the Environmental Reports:

     (i) To the best of Borrower’s actual knowledge, each Property is in compliance in all
material respects with all Environmental Laws applicable to such Property (which compliance
includes, but is not limited to, the possession of, and compliance with, all environmental,
health and safety permits, approvals, licenses, registrations and other governmental
authorizations required in connection with the ownership and operation of such Property
under all Environmental Laws).

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     (ii) No Environmental Claim is pending with respect to any of the Properties, nor, to
Borrower’s actual knowledge, is any threatened, nor are there any consent decrees or other
decrees, consent orders, administrative orders or other orders, or other administrative or
judicial requirements outstanding under any Environmental Law with respect to Borrower or
any of the Properties.

     (iii) Without limiting the generality of the foregoing, to the best of Borrower’s
actual knowledge, there is not present at, on, in or under any Property, any Hazardous
Substances, PCB-containing equipment, asbestos or asbestos containing materials, underground
storage tanks or surface impoundments for any Hazardous Substance, lead in drinking water
(except in concentrations that comply with all Environmental Laws), or lead-based paint,
except those that are (x) both (1) in compliance with all applicable Environmental Laws and
with permits issued pursuant thereto, as required, and (2) fully disclosed to Lender in
writing or routinely used in the operation and maintenance of, or by tenants in, commercial
properties similar to the Properties, and (y) not reasonably likely to result in a Material
Adverse Effect.

     (iv) To the best of Borrower’s actual knowledge, there have not been and are no past,
present or threatened Releases of any Hazardous Substance from or at any of the Properties
that are reasonably likely to form the basis of any Environmental Claim, and, to Borrower’s
actual knowledge, there is no threat of any Release of any Hazardous Substance migrating to
any of the Properties.

     (v) No Liens are presently recorded with the appropriate land records under or pursuant
to any Environmental Law with respect to any of the Properties and, to Borrower’s actual
knowledge, no Governmental Authority has been taking any action to subject any of the
Properties to Liens under any Environmental Law.

     (vi) For the purposes of this Agreement, Borrower’s knowledge, Borrower’s actual
knowledge, to the best of Borrower’s knowledge, and phrases of like effect, shall include
the knowledge of Sponsor and Borrower’s other Affiliates.

          4.29. Assessments. There are no pending or, to Borrower’s knowledge, proposed special
or other assessments for public improvements or otherwise affecting any of the Properties, nor are
there any contemplated improvements to any of the Properties that may result in such special or
other assessments. No extension of time for assessment or payment by Borrower of any federal,
state or local tax is in effect.

          4.30. No Joint Assessment. Borrower has not suffered, permitted or initiated the
joint assessment of any of the Properties (i) with any other real property constituting a separate
tax lot, or (ii) with any personal property, or any other procedure whereby the Lien of any Taxes
which may be levied against such other real property or personal property shall be assessed or
levied or charged to any of the Properties as a single Lien.

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          4.31. Separate Lots. No portion of any of the Properties is part of a tax lot that
also includes any real property that is not Collateral.

          4.32. Permits; Certificate of Occupancy. Borrower has obtained all Permits necessary
for the present and contemplated use and operation of each Property. The uses being made of each
Property are in conformity in all material respects with the certificate of occupancy and/or
Permits for such Property and any other restrictions, covenants or conditions affecting such
Property.

          4.33. Flood Zone. None of the Improvements on any of the Properties is located in an
area identified by the Federal Emergency Management Agency or the Federal Insurance Administration
as a “100 year flood plain” or as having special flood hazards (including Zones A, B, C, V and X
and Shaded X areas), or, to the extent that any portion of any of the Properties is located in such
an area, such Property is covered by flood insurance meeting the requirements set forth in
Section 5.15(a)(ii).

          4.34. Security Deposits. Borrower is in compliance in all material respects with all
Legal Requirements relating to security deposits.

          4.35. Acquisition Documents. Borrower has delivered to Lender true and complete
copies of all material agreements and instruments under which Borrower or any of its affiliates or
the seller of any of the Properties have remaining rights or obligations in respect of Borrower’s
acquisition of the Properties.

          4.36. Insurance. Borrower has obtained insurance policies reflecting the insurance
coverages, amounts and other requirements set forth in this Agreement. All premiums on such
insurance policies required to be paid as of the Closing Date have been paid for the current policy
period. No Person, including Borrower, has done, by act or omission, anything which would impair
the coverage of any such policy.

          4.37. [intentionally omitted]

          4.38. No Dealings. Neither Borrower nor the Sponsor is aware of any unlawful
influence on the assessed value of the Properties.

          4.39. Estoppel Certificates. Borrower has delivered to Lender true and complete
copies of (a) the form(s) of estoppel certificate heretofore sent by Borrower or an Affiliate to
every Tenant at the Property owned by Borrower, and (b) each estoppel certificate received back
from any such Tenant prior to the Closing Date.

          4.40 Embargoed Person. To Borrower’s actual knowledge (a) none of the funds or other
assets of any of Borrower, any Single-Purpose Equityholder or Sponsor constitute property of, or
are beneficially owned, directly or indirectly, by any person, entity or government subject to
trade restrictions under federal law, including, without limitation, the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act,

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50 U.S.C.
App. 1 et seq. , and any executive orders or regulations promulgated thereunder, with the
result that (i) the investment in any of Borrower, any Single-Purpose Equityholder or Sponsor, as
applicable (whether directly or indirectly), is prohibited by law or (ii) the Loan is in violation
of law (any such person, entity or government, an “Embargoed Person”); (b) no Embargoed
Person has any interest of any nature
whatsoever in any of Borrower, any Single-Purpose Equityholder or Sponsor, as applicable
(whether directly or indirectly), with the result that (i) the investment in any of Borrower, any
Single-Purpose Equityholder or Sponsor, as applicable (whether directly or indirectly) is
prohibited by law or (ii) the Loan is in violation of law and (c) none of the funds of any of
Borrower, any Single-Purpose Equityholder or Sponsor, as applicable, have been derived from any
unlawful activity with the result that (i) the investment in any of Borrower, any Single-Purpose
Equityholder or Sponsor, as applicable (whether directly or indirectly) is prohibited by law or
(ii) the Loan is in violation of law. Notwithstanding Section 4.42 to the contrary, the
representations and warranties contained in this Section 4.40 shall survive in perpetuity.

          4.41 Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering
Laws. To the best of Borrower’s knowledge, (a) Borrower, (b) each Person owning an interest in
any of Borrower, any Single-Purpose Equityholder or Sponsor, (c) each Single-Purpose Equityholder,
if any, (d) Sponsor, (e) each Property manager (including each Approved Property Manager) and (f)
each Tenant each of the Properties: (i) is not currently identified on the OFAC List and (ii) is
not a Person with whom a citizen of the United States is prohibited to engage in transactions by
any trade embargo, economic sanction, or other prohibition of any Legal Requirement. Borrower has
implemented procedures, and will consistently apply those procedures throughout the term of the
Loan, to ensure the foregoing representations and warranties remain true and correct during the
term of the Loan.

          4.42. Survival. Borrower agrees that all of the representations of Borrower set forth
in this Agreement and in the other Loan Documents shall survive for so long as any portion of the
Indebtedness is outstanding. All representations, covenants and agreements made by Borrower in
this Agreement or in the other Loan Documents shall be deemed to have been relied upon by Lender
notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. On the
date of any Securitization, on not less than three days’ prior written notice, Borrower shall
deliver to Lender a certification (x) confirming that all of the representations contained in this
Agreement are true and correct as of the date of such Securitization, or (y) otherwise specifying
any changes in or qualifications to such representations as of such date as may be necessary to
make such representations consistent with the facts as they exist on such date.

ARTICLE V

AFFIRMATIVE COVENANTS

          5.1. Existence. Borrower and, if applicable, each Single-Purpose Equityholder shall
do or cause to be done all things necessary to preserve, renew and keep in full force and effect
its existence and all rights, licenses, Permits, franchises and other agreements necessary for the
continued use and operation of its business. Borrower and, if applicable, each Single-Purpose
Equityholder shall deliver to Lender a copy of each amendment or other modification to any of its
organizational documents promptly after the execution thereof.

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          5.2. Maintenance of Properties. Borrower will keep each Property in good working
order and repair, reasonable wear and tear excepted. Subject to Section 6.13, Borrower
shall from time to time make, or cause to be made, all reasonably necessary and desirable repairs,
renewals, replacements, betterments and improvements thereto.

          5.3. Compliance with Legal Requirements. Borrower shall comply with, and shall cause
each Property to comply with and be operated, maintained, repaired and improved in compliance with,
all Legal Requirements, Insurance Requirements and all material contractual obligations by which
Borrower is legally bound.

          5.4. Impositions and Other Claims. Borrower shall pay and discharge all taxes,
assessments and governmental charges levied upon it, its income and its assets as and when such
taxes, assessments and charges are due and payable, as well as all lawful claims for labor,
materials and supplies or otherwise, subject to any rights to contest contained in the definition
of Permitted Encumbrances. Borrower shall file all federal, state and local tax returns and other
reports that it is required by law to file. If any law or regulation applicable to Lender, any
Note, any of the Properties or any of the Mortgages is enacted that deducts from the value of
property for the purpose of taxation any Lien thereon, or imposes upon Lender the payment of the
whole or any portion of the taxes or assessments or charges or Liens required by this Agreement to
be paid by Borrower, or changes in any way the laws or regulations relating to the taxation of
mortgages or security agreements or debts secured by mortgages or security agreements or the
interest of the mortgagee or secured party in the property covered thereby, or the manner of
collection of such taxes, so as to affect any of the Mortgages, the Indebtedness or Lender, then
Borrower, upon demand by Lender, shall pay such taxes, assessments, charges or Liens, or reimburse
Lender for any amounts paid by Lender. If in the opinion of Lender’s counsel it might be unlawful
to require Borrower to make such payment or the making of such payment might result in the
imposition of interest beyond the maximum amount permitted by applicable Law, Lender may elect to
declare all of the Indebtedness to be due and payable 90 days from the giving of written notice by
Lender to Borrower.

          5.5. Access to Properties. Borrower shall permit agents, representatives and
employees of Lender and the Servicer to inspect the Properties or any portion thereof, and/or the
books and records of Borrower, at such reasonable times as may be requested by Lender upon
reasonable advance notice.

          5.6. Cooperate in Legal Proceedings. Except with respect to any claim by Borrower
against Lender, Borrower shall cooperate fully with Lender with respect to any proceedings before
any Governmental Authority which may in any way affect the rights of Lender hereunder or under any
of the Loan Documents and, in connection therewith, Lender may, at its election, participate or
designate a representative to participate in any such proceedings.

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          5.7. Leases.

          (a) Borrower shall furnish Lender with executed copies of all Leases and any amendments to the
LTF CO Lease, together with a detailed breakdown of income and cost associated therewith. All new
Leases and any renewals or amendments of the LTF CO Lease must be entered into on an arms-length
basis with LTF CO, must provide for rental rates and other economic terms which, taken as a whole,
are at least equivalent to then-existing market rates, based on the applicable market, and must
contain terms and conditions that are commercially reasonable (in each case, unless Lender consents
to such Lease in its sole discretion). All new or amended Leases must provide that they are
subject and subordinate to any current or future mortgage financing on the applicable Property and
that the Tenant agrees to attorn to any foreclosing mortgagee at such mortgagee’s request.

          (b) Any terminations, renewals and amendments of the LTF CO Lease and any surrender of rights
under any such Lease, shall be subject to the prior written consent of Lender.

          (c) Borrower shall (i) observe and perform all the material obligations imposed upon the
lessor under the Leases; (ii) enforce all of the material terms, covenants and conditions contained
in the Leases or guaranties thereof on the part of the lessee or guarantor thereunder to be
observed or performed, short of termination thereof, except that Borrower may terminate any Lease
other than the LTF CO Lease following a material default thereunder by the Tenant; (iii) not
collect any of the rents thereunder more than one month in advance; (iv) not execute any assignment
of lessor’s interest in the Leases or associated rents other than the assignments of rents and
leases under the Mortgages; and (v) not cancel or terminate any guarantee of any LTF CO Lease or
any other Lease without the prior written consent of Lender. Borrower shall deliver to each new
Tenant a Tenant Notice upon execution of such Tenant’s Lease, and promptly thereafter deliver to
Lender a copy thereof and evidence of such Tenant’s receipt thereof.

          (d) Security deposits of Tenants under all Leases, whether held in cash or any other form,
shall not be commingled with any other funds of Borrower and, if cash, shall be deposited by
Borrower in an account at such commercial or savings bank as may be reasonably satisfactory to
Lender, which account is hereby pledged to Lender. Any bond or other instrument which Borrower is
permitted to hold in lieu of cash security deposits under any applicable Legal Requirements shall
be maintained in full force and effect unless replaced by cash deposits as described above, shall
be issued by an institution reasonably satisfactory to Lender, shall (if not prohibited by any
Legal Requirements) name Lender as payee or mortgagee thereunder (or at Lender’s option, be fully
assignable to Lender) or may name Borrower as payee thereunder so long as such bond or other
instrument is pledged to Lender as security for the Indebtedness and shall, in all respects, comply
with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender.
Borrower shall, upon Lender’s request, provide Lender with evidence reasonably satisfactory to
Lender of Borrower’s compliance with the foregoing. During the continuance of any Escrow Period or
Event of Default, Borrower shall, upon Lender’s request, deposit with Lender in an Eligible Account
pledged to Lender an amount equal to the aggregate security deposits of the Tenants (and any
interest theretofore earned on
such security deposits and actually received by Borrower) which Borrower had not returned to
the applicable Tenants or applied in accordance with the terms of the applicable Lease.

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          5.8. Plan Assets, etc. Borrower will do, or cause to be done, all things necessary to
ensure that it will not be deemed to hold Plan Assets at any time.

          5.9. Further Assurances. Borrower shall, at Borrower’s sole cost and expense, from
time to time as reasonably requested by Lender, execute, acknowledge, record, register, file and/or
deliver to Lender such other instruments, agreements, certificates and documents (including Uniform
Commercial Code financing statements and amended or replacement mortgages) as Lender may reasonably
request to evidence, confirm, perfect and maintain the Liens securing or intended to secure the
obligations of Borrower under the Loan Documents if requested by Lender, and do and execute all
such further lawful and reasonable acts, conveyances and assurances for the better and more
effective carrying out of the intents and purposes of this Agreement and the other Loan Documents
as Lender shall reasonably request from time to time. Borrower hereby authorizes and appoints
Lender as its attorney-in-fact to execute, acknowledge, record, register and/or file such
instruments, agreements, certificates and documents, and to do and execute such acts, conveyances
and assurances, should Borrower fail to do so itself in violation of this Agreement following
written request from Lender, in each case without the signature of Borrower. The foregoing grant
of authority is a power of attorney coupled with an interest and such appointment shall be
irrevocable for the term of this Agreement. Borrower hereby ratifies all actions that such
attorney shall lawfully take or cause to be taken in accordance with this Section 5.9.

          5.10. Management of Collateral.

          (a) Each Property shall be managed at all times by an Approved Property Manager. If Borrower
is not or does not remain the Approved Property Manager, the management shall be pursuant to an
Approved Management Agreement. Pursuant to the Subordination of Property Management Agreement or
Agreements, each Approved Property Manager (other than Borrower acting in a self-management
capacity without fee) shall agree that its Approved Management Agreement, and all fees thereunder
(including any incentive fees) are subject and subordinate to the Indebtedness. Borrower may from
time to time appoint an Approved Property Manager to manage the applicable Property pursuant to an
Approved Management Agreement, and such successor manager shall execute for Lender’s benefit a
Subordination of Property Management Agreement in form and substance reasonably satisfactory to
Lender. If the Approved Property Manager is other than Borrower acting in a self-management
capacity without fee, the per annum fees of the Approved Property Manager (including any incentive
fees) shall not, at any time, exceed 3% of the gross revenues of the relevant Property for the then
most recently concluded Test Period.

          (b) Borrower shall cause each Approved Property Manager (including any successor Approved
Property Manager) to maintain at all times worker’s compensation insurance as required by
Governmental Authorities.

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          (c) Borrower shall notify Lender in writing of any default of Borrower or an Approved
Property Manager under any of the Approved Management Agreements, after the expiration of any
applicable cure periods, of which Borrower has actual knowledge. Lender shall have the right,
after reasonable notice to Borrower and in accordance with such Subordination of Management
Agreement, to cure defaults of Borrower under such Approved Management Agreement. Any reasonable
out-of-pocket expenses incurred by Lender to cure any such default shall constitute a part of the
Indebtedness and shall be due from Borrower upon demand by Lender.

          (d) Upon the occurrence and during the continuance of an Event of Default, or a material
default by an Approved Property Manager under an Approved Management Agreement after the expiration
of any applicable cure period or upon the filing of a bankruptcy petition or the occurrence of a
similar event with respect to an Approved Property Manager, or at any time when Borrower is
obligated to make fundings of the Monthly Capital Expenditure Reserve Amount, Lender may, in its
sole discretion, require Borrower to terminate its own self management or the Approved Management
Agreement and engage an Approved Property Manager selected by Lender to serve as replacement
Approved Property Manager pursuant to an Approved Management Agreement.

          5.11. Notice of Material Event. Borrower shall give Lender prompt notice (containing
reasonable detail) of (x) any material change in the financial or physical condition of any of the
Properties, as reasonably determined by Borrower, including the termination or cancellation of any
Lease with LTF Club Operations, Inc., a Minnesota corporation and the termination or cancellation
of terrorism or other insurance required by this Agreement, and (y) any litigation or governmental
proceedings pending or threatened in writing against Borrower which is reasonably likely to have a
Material Adverse Effect.

          5.12. Annual Financial Statements. As soon as available, and in any event within 90
days after the close of each Fiscal Year or, if longer, within the period allowed by the Securities
and Exchange Commission to file annual financial statements, Borrower shall furnish to Lender, in
hard copy and electronic format, a balance sheet of Life Time Fitness, Inc. as of the end of such
year, together with related statements of income and equityholders’ capital for such Fiscal Year,
audited by a “Big Four” accounting firm whose opinion shall be to the effect that such financial
statements have been prepared in accordance with GAAP applied on a consistent basis and shall not
be qualified as to the scope of the audit or as to the status of Life Time Fitness, Inc. as a going
concern. Borrower shall furnish to Lender in hard copy and electronic format, a balance sheet of
Borrower as of the end of such year, which statement shall be accompanied by an officer’s
certificate certifying the same is true and correct and was prepared in accordance with GAPP
applied on a consistent basis. Together with such annual financial statements, Borrower shall
furnish to Lender, in hard copy and electronic format, on a combined basis for the Properties, an
annual report for the most recently completed fiscal year, describing Capital Expenditures incurred
by Borrower (stated separately with respect to any project costing in excess of $100,000), Tenant
Improvements and Leasing Commissions, if any.

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          5.13. Quarterly Financial Statements. As soon as available, and in any event within
45 days after the end of each Fiscal Quarter (including year-end), Borrower shall furnish to
Lender, in electronic format, quarterly and year-to-date unaudited financial statements
prepared for such fiscal quarter with respect to Borrower, including a balance sheet and
income statement as of the end of such Fiscal Quarter and for the portion of the Fiscal Year ending
with such Fiscal Quarter, which statements shall be accompanied by an Officer’s Certificate
certifying that the same are true and correct and were prepared in accordance with GAAP applied on
a consistent basis, subject to changes resulting from audit (if any) and normal year-end audit
adjustments (if any). Each such quarterly report shall be accompanied by a report of Borrower
detailing, for such Fiscal Quarter, (i) the deposits into, withdrawals from and balances in the
FF&E Account, (ii) the Pooled Property Revenues, (iii) the Pooled Properties EBITDAR, and (iv) the
number of memberships at the Properties.

          5.14. Monthly Financial Statements. Until the occurrence of a Securitization and
during the continuance of a Escrow Period or an Event of Default (or, in the case of item (iii)
below, at all times), Borrower shall furnish within 45 days after the end of each calendar month
(other than the calendar month immediately following Fiscal Year or the last calendar month of any
Fiscal Quarter), in electronic format, monthly and year-to-date unaudited financial statements
prepared for the applicable month with respect to Borrower, including a balance sheet and income
statement as of the end of such month, which statements shall be accompanied by an Officer’s
Certificate certifying that the same are true and correct and were prepared in accordance with GAAP
applied on a consistent basis, subject to changes resulting from audit (if any) and normal year-end
audit adjustments (if any).

Notwithstanding anything to the contrary in this Agreement, Borrower shall only be required to
deliver financial information for the aggregate of the Properties, and not for any individual
Property.

          5.15. Insurance. Borrower, at its sole cost and expense, for the mutual benefit of
Borrower and Lender, shall obtain and maintain during the entire term of the Loan (the
“Term”) the following policies of insurance:

          (a) All Risk or Special Causes of Loss Property Form including Business Interruption.

     (i) Comprehensive all risk insurance (including, without limitation, coverage against
riot and civil commotion, vandalism, malicious mischief, water, mold (based on a covered
peril), fire, burglary, theft and terrorism) on the improvements to and all other insurable
portions of the Properties and in each case (A) insuring against any peril now or hereafter
included within the classification “Special Form Cause of Loss”, (B) in an amount equal to
100% of the “Full Replacement Cost,” (C) containing an agreed amount endorsement with
respect to the improvements, equipment and all other insurable portions of the Properties
waiving all co-insurance provisions, and (D) providing that the deductible shall not exceed
the sum of $100,000.00, unless agreed to in writing by Lender. For the purposes of this
Agreement the term “Full Replacement Cost” means the

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actual replacement cost of the
improvements and equipment (without taking into account any depreciation, and exclusive of
excavations, footings and foundations, landscaping and paving) determined annually by an
insurer, a recognized independent insurance broker or an independent appraiser selected and
paid by Borrower and in no event less than the coverage required pursuant to the terms of
any Lease.

     (ii) Business income interruption insurance (A) with loss payable to Lender, (B)
covering losses of income and Revenues derived from the Properties resulting from any risk
or casualty whatsoever, (C) containing an extended period of indemnity endorsement which
provides that after the physical loss to the improvements and all other insurable portions
of the Properties have been repaired, the continued loss of income will be insured until
such income either returns to the same level it was at prior to the loss, or the expiration
of one hundred eighty (180) days from the date the affected Property is repaired or replaced
and operations resumed, whichever first occurs, and notwithstanding that the policy may
expire prior to the end of such period, and (D) in an amount equal to one hundred percent
(100%) of the projected Revenue from the Properties for a period of twelve (12) months. The
amount of such business income insurance shall be determined by Lender prior to the date
hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the
gross income from the Properties for the succeeding twelve (12) month period. All insurance
proceeds payable to Lender pursuant to this Section 5.15(a)(ii) shall be immediately
deposited into the Loss Proceeds Account and shall be applied to the Indebtedness and/or
disbursed to Borrower for payment of the costs and expenses to maintain and operate the
affected Property in accordance with Section 5.16; provided,
however, that nothing herein contained shall be deemed to relieve Borrower of its
obligation to pay the Indebtedness on the respective dates of payment provided for herein
except to the extent such amounts are actually paid out of the proceeds of such business
income insurance. The perils covered by this insurance shall be the same as those accepted
on the real property, including flood and earthquake, as necessary. This coverage shall be
written on the same basis as the property policy stated in Section 5.15(a)(i) above.

     (iii) The policy of insurance required pursuant to Section 5.15(a)(i) above
shall contain Demolition Costs, Increased Cost of Construction and “Ordinance or Law
Coverage” or “Enforcement” endorsements in amounts satisfactory to Lender if any of the
improvements or the use of the Properties shall at any time constitute legal non-conforming
structures or uses or the ability to rebuild the Improvements is restricted or prohibited.

     (iv) If windstorm coverage is excluded from the policy required under Section
5.15(a)(i) above, Borrower must provide separate windstorm insurance in an amount equal
to the lesser of the original principal balance of the Loan and the maximum amount permitted
by law, if any of the Properties are located in area where Lender requires such insurance.
Deductibles for windstorm coverage larger than 5% of the casualty policy limit applicable to
any Property are subject to approval by Lender.

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     (v) At all times during which structural construction, repairs or alterations are being
made with respect to the improvements: (A) owner’s contingent or protective liability
insurance covering claims not covered by or under the terms or provisions of the commercial
general liability insurance policy described in Section 5.15(b), and (B) the
insurance provided for in Section 5.15(a)(i) written on a so-called builder’s risk
completed value form (1) on a non-reporting basis, (2) against all risks insured against
pursuant to Section 5.15(a)(i), (3) including permission to occupy the improvements,
and
(4) with an agreed amount endorsement waiving co-insurance provisions. The amount of
such coverage must be approved by Lender.

          (b) Commercial General Liability/Umbrella Liability. Commercial general liability
insurance against claims for personal injury, bodily injury, death or property damage occurring
upon, in or about the Properties, such insurance (A) to be on the so-called “occurrence” form
containing minimum limits per occurrence of $1,000,000.00 and $2,000,000.00 in the aggregate,
together with excess and/or umbrella liability in an amount of at least $100,000,000; (B) to
contain a liquor liability endorsement if any part of a Property is covered by a liquor license;
(C) to continue at not less than the aforesaid limit until required to be changed by Lender in
writing by reason of changed economic conditions making such protection inadequate; (D) to cover at
least the following hazards, (1) premises and operations, (2) products and completed operations on
an “if any” basis, (3) independent contractors, (4) blanket contractual liability for all written
and oral contracts, (5) contractual liability covering the indemnities contained in Section
5.18 hereof to the extent the same is available, and (6) all legal liability imposed upon
Borrower and all court costs and attorneys’ fee incurred in connection with the ownership,
operation and maintenance of the Properties; and (E) subject to commercial availability, to have no
greater than a $500,000.00 self-insured retention, provided that such self-insured retention may be
increased but not more than proportionately to any increase in the total revenues of Sponsor, as
reflected by its most recent 10Q or 10K filing, as the case may be, from and after the date hereof.
If Borrower has a multi-location policy or loan, the primary general liability coverage must be
maintained on a “general aggregate per-location basis”.

          (c) Flood Insurance. Flood insurance will be required if any portion of the
improvements to a Property is situated in a federally designated “special flood hazard area” (for
example, Zones A and V) as designated by the Federal Emergency Management Agency, or any successor
thereto, as an area having special flood hazards pursuant to the National Flood Insurance Act of
1968, The Flood Disaster Protection Act of 1973, or the National Flood Insurance Reform Act of
1994, as each may be amended, (the “Flood Insurance Acts”). The minimum amount of flood
insurance required is the lesser of one hundred percent (100%) of the Full Replacement Cost (plus
business interruption coverage) or the maximum limit of coverage available for the Improvements
under the Flood Insurance Act. The maximum deductible shall be no more than $25,000.

          (d) Sinkhole, Mine Subsidence and Earthquake. Sinkhole, mine subsidence and
earthquake insurance shall be obtained and maintained if in the opinion of a professional engineer
with experience in this professional area there is a foreseeable risk of loss due to this hazard.
If necessary, as determined by such engineer, Borrower shall maintain coverage in the full
principal amount of the Loan.

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          (e) Boiler and Machinery Coverage. Comprehensive broad form boiler and machinery
insurance (without exclusion for explosion) covering all steam boilers, heating and air
conditioning equipment, high pressure piping, machinery and equipment, sprinkler systems, pressure
vessels, refrigeration equipment and piping, or similar apparatus now or hereafter installed in the
improvements (including “system breakdown coverage”) and insuring against loss of occupancy or use
arising from any breakdown, in an amount at least equal to the lesser of
the outstanding principal amount of the Loan or $2,000,000.00, with a deductible no greater
than $100,00.00, unless approved by Lender.

          (f) Worker’s Compensation and Employer’s Liability. If Borrower has any employees,
workers’ compensation, subject to the statutory limits of the state in which the Properties are
located, and employer’s liability insurance with a limit of at least $500,000.00 per accident and
per disease per employee, and $500,000.00 for disease aggregate in respect of any work or
operations on or about the Properties and improvements, or in connection with the Properties and
improvements, or their operation (if applicable).

          (g) Miscellaneous. Such other insurance as may from time to time be reasonably
required by Lender in order to protect its interests, including such insurance as may now be or
hereafter becomes available that Lender reasonably deems prudent in light of then prevailing market
or industry practices or applicable law, provided that absent a change of law, a change of
prevailing market or industry practices, or a material changes of circumstances relating to the
Collateral, no other such coverages shall be required.

All policies of insurance (the “Policies”) required pursuant to this Section 5.15
(i) shall be issued by companies licensed to do business in the state where the Properties are
located, with a claims paying ability rating of “A” or its equivalent by Standard & Poor’s Ratings
and Moody’s Investors Services, Inc. and a rating of “A: IX” or better in the current Best’s
Insurance Reports, (ii) shall name Lender and its successors and/or assigns as their interest may
appear as the Lender, (iii) shall contain a non-contributory standard Lender clause and a lender’s
loss payable endorsement, or their equivalents, naming Lender as the person to which all payments
made by such insurance company shall be paid, (iv) shall contain a waiver of subrogation against
Lender, (v) shall be maintained throughout the Term without cost to Lender, (vi) shall be assigned
to Lender, (vii) on or prior to the date hereof, Borrower shall deliver to Lender either certified
copies of the Policies in effect on the date hereof (the “Current Policies”) or ACORD Form
25-S, Certificate of Liability Insurance, and ACORD Form 28, Evidence of Commercial Property
Insurance (the “ACORD Certificates”) with respect to the Current Policies (and each ACORD
Certificate must specify the Lender, loss payee and additional insured status and/or waivers of
subrogation, state the amounts of all deductibles and self-insured retentions, if any, set forth
notice requirements for cancellation, material change, or non-renewal of insurance and be
accompanied by copies of all required endorsements, provided that Borrower shall deliver to Lender
certified copies of the Current Policies upon actual issuance; (viii) at least fifteen (15) days
prior to the expiration of the Policies, Borrower shall deliver to Lender either the original

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policies (or copies of the same certified by the issuers thereof) issued in renewal of each of the
expiring Policies or ACORD Certificates with respect thereto, provided that Borrower shall deliver
to Lender the original policies (or copies of the same certified by the issuers thereof) issued in
renewal of the expired Policies upon actual issuance of the renewal policies; (ix) shall contain
endorsements providing that Lender shall not be liable for the payment of any of the Insurance
Premiums, that neither Borrower, Lender nor any other party shall be a co-insurer under said
Policies, that no act or negligence of Borrower, or anyone acting for Borrower, or of any tenant
under any Lease or other occupant, or failure to comply with the provisions of any Policy which
might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way
affect the validity or enforceability of the insurance insofar as Lender is concerned, that Lender
shall receive at least thirty (30) days prior written notice of any material modification,
reduction or cancellation, and such other similar provisions as Lender deems reasonably necessary
or desirable to protect its interest, and (x) any material changes from the coverages and policies
approved by Lender prior to the date hereof shall be acceptable in form and substance to Lender and
shall be approved by Lender as to amounts, form, risk coverage, deductibles, loss payees and
insureds. Borrower shall pay the premiums for such Policies (the “Insurance Premiums”) as
the same become due and payable and shall furnish to Lender evidence of the renewal of each of the
Policies with receipts for the payment of the currently due installments of the Insurance Premiums
or other evidence of such payment reasonably satisfactory to Lender (provided, however, that
Borrower is not required to furnish such receipts for payment of Insurance Premiums in the event
that no Event of Default exists and Borrower has previously Basic Carrying Costs Escrow Account
with sufficient funds to pay all such Insurance Premiums therefrom. If Borrower does not furnish
such evidence and receipts for then currently due installments of Insurance Premiums at least
fifteen (15) days prior to the expiration of any expiring Policy, then Lender may procure, but
shall not be obligated to procure, such insurance and pay the Insurance Premiums therefor, and
Borrower agrees to reimburse Lender for the cost of such Insurance Premiums promptly on demand.
Borrower covenants and agrees to promptly forward to Lender a copy of each written notice received
by Borrower of any material modification, reduction or cancellation of any of the Policies or of
any of the coverages afforded under any of the Policies. Within thirty (30) days after request by
Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may
be reasonably requested by Lender, taking into consideration and based upon changes in the value of
money over time, changes in liability laws, changes in prudent customs and practices, and the like.

          5.16. Casualty and Condemnation.

          (a) Borrower shall give prompt notice to Lender of any Casualty or Condemnation. Lender may
(x) jointly with Borrower settle and adjust any claims, (y) during the continuance of an Event of
Default, settle and adjust any claims without the consent or cooperation of Borrower, or (z) allow
Borrower to settle and adjust any claims; except that if no Event of Default has occurred and is
continuing, Borrower may settle and adjust claims aggregating not in excess of $500,000 if such
settlement or adjustment is carried out in a competent and timely manner, but Lender shall be
entitled to collect and receive (as set forth below) any and all Loss Proceeds. The reasonable
expenses incurred by Lender in the adjustment and collection of Loss Proceeds shall become part of
the Indebtedness and shall be reimbursed by Borrower to Lender upon demand therefor.

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          (b) All Loss Proceeds shall be immediately deposited into the Loss Proceeds Account (monthly
rental loss/business interruption proceeds to be initially deposited into the Loss Proceeds Account
and subsequently deposited into the Cash Management Account in installments as and when the lost
rental income covered by such proceeds would have been payable). Following the occurrence of a
Casualty, Borrower, regardless of whether proceeds are available and unless it elects, within
thirty (30) days thereafter, to obtain a release of the affected Property pursuant to Section
2.1(c), shall in a reasonably prompt manner proceed to restore, repair, replace or rebuild, and
manage the process of restoration, repairing, replacing or rebuilding, the applicable Property to
be of at least equal value and of substantially the same character as prior to the Casualty, all in
accordance with the terms hereof applicable to
Alterations. If, at any Property, a Condemnation or Casualty occurs as to which, in the
reasonable judgment of Lender:

     (i) in the case of a Casualty, the cost of restoration would not exceed 25% of the
applicable Allocated Loan Amount and the Casualty does not render untenantable, or result in
the cancellation of Leases covering, more than 25% of the gross rentable area of such
Property, or result in cancellation of Leases covering more than 25% of the base contractual
rental revenue of such Property;

     (ii) in the case of a Condemnation, the Condemnation does not render untenantable, or
result in the cancellation of Leases covering, more than 15% of the gross rentable area of
such Property;

     (iii) restoration of such Property is reasonably expected to be completed prior to the
expiration of rental interruption insurance and at least six months prior to the Maturity
Date; and

     (iv) after such restoration, the fair market value of the restored Property is
reasonably expected to equal at least the fair market value of such Property immediately
prior to such Condemnation or Casualty (assuming the affected portion of such Property is
relet);

or if Lender otherwise elects to allow Borrower to restore such Property, then, provided no Event
of Default shall have occurred and is continuing, the Loss Proceeds after receipt thereof by Lender
and reimbursement of any reasonable expenses incurred by Lender in connection therewith shall be
applied to the cost of restoring, repairing, replacing or rebuilding such Property or part thereof
subject to the Casualty or Condemnation, in the manner set forth below (and Borrower shall commence
as promptly and diligently as practicable to prosecute such restoring, repairing, replacing or
rebuilding of such Properties in a workmanlike fashion and in accordance with applicable law to a
status at least equivalent to the quality and character of such Properties immediately prior to the
Condemnation or Casualty). Provided that no Event of Default shall have occurred and be then
continuing, Lender shall disburse such Loss Proceeds to

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Borrower within fifteen (15) days of
Lender’s being furnished with (i) evidence reasonably satisfactory to it of the estimated cost of
completion of the restoration, (ii) funds, or assurances reasonably satisfactory to Lender that
such funds are available and sufficient in addition to any remaining Loss Proceeds, to complete the
proposed restoration, and (iii) such architect’s certificates, waivers of lien, contractor’s sworn
statements, title insurance endorsements, bonds, plats of survey and such other evidences of cost,
payment and performance as Lender may reasonably request; and Lender may, in any event, require
that all plans and specifications for restoration reasonably estimated by Lender to exceed $500,000
and which provide for any material differences between the Property prior to the Condemnation or
Casualty and as restored be submitted to and approved by Lender prior to commencement of work
(which approval shall not be unreasonably withheld). If Lender reasonably estimates that the cost
to restore will exceed $500,000, Lender may retain a local construction consultant to inspect such
work and review Borrower’s request for payments and Borrower shall, on demand by Lender, reimburse
Lender for the reasonable fees and expenses of such consultant (which fees and expenses shall
constitute Indebtedness). No payment shall exceed 90% of the value of the work performed
from time to time until such time as 50% of the restoration (calculated based on the anticipated
aggregate cost of the work) has been completed, and amounts retained prior to completion of 50% of
the restoration shall not be paid prior to the final completion of the restoration. Funds other
than Loss Proceeds shall be disbursed prior to disbursement of such Loss Proceeds, and at all times
the undisbursed balance of such proceeds remaining in the Loss Proceeds Account, together with any
additional funds irrevocably and unconditionally deposited therein or irrevocably and
unconditionally committed for that purpose, shall be at least sufficient in the reasonable judgment
of Lender to pay for the cost of completion of the restoration free and clear of all Liens or
claims for Lien.

          (c) Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Loss
Proceeds lawfully or equitably payable to Lender in connection with the Properties. Lender shall
be reimbursed for any expenses reasonably incurred in connection therewith (including reasonable
attorneys’ fees and disbursements, and, if reasonably necessary to collect such proceeds, the
expense of an Appraisal on behalf of Lender) out of such Loss Proceeds or, if insufficient for such
purpose, by Borrower.

          (d) If Borrower is not entitled to apply Loss Proceeds toward the restoration of a Property
pursuant to Section 5.16(b) and Lender elects not to permit such Loss Proceeds to be so
applied, (i) such Loss Proceeds shall be applied on the first Payment Date following such election
to the prepayment of the Loan and shall be accompanied by interest through the end of the
applicable Interest Accrual Period (calculated as if the amount prepaid were outstanding for the
entire Interest Accrual Period), and (ii) Borrower shall have the right to obtain the release of
the affected Property by prepayment of the entire Allocated Loan Amount without Yield Maintenance
but otherwise as provided in Section 2.4, or to substitute such Property with a Qualified
Substitute Property without regard to the Lockout Period but otherwise as provided in Section
2.3 If the Note has been bifurcated into multiple Notes pursuant to Section 1.1(c),
all prepayments of the Loan made by Borrower in accordance with this Section 5.16(d) shall
be applied to the Notes prorata in proportion to their outstanding principal balances so that the
blended Interest Rate continues to equal the Initial Interest Rate.

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          5.17. Annual Budget. At least 45 days prior to the commencement of each Fiscal Year
during the term of the Loan and at least 30 days after the commencement of any Escrow Period or
Event of Default, Borrower shall deliver to Lender an Annual Budget for the Properties for the
ensuing Fiscal Year and, promptly after preparation thereof, any subsequent revisions to the Annual
Budget. During the continuance of any Escrow Period or Event of Default, such Annual Budget and
any such revisions shall be subject to Lender’s approval (the Annual Budget, as so approved, the
“Approved Annual Budget”); provided, however, that Borrower shall not amend
any Annual Budget more than once in any 60-day period. Without the prior written consent of
Lender, which consent shall not be unreasonably withheld or delayed, during the continuance of a
Trigger Period Borrower shall not make any expenditures that are either not provided for in the
Approved Annual Budget or that would, in the aggregate, cause any line item in the Approved Annual
Budget to be exceeded by 5% or more measured on an annual basis, other than expenditures for
non-discretionary items and expenditures required to be made by reason of the occurrence of any
emergency (i.e., an unexpected event which threatens imminent harm to persons or property
at a Property) and with respect to which it would be impracticable, under the circumstances, to
obtain Lender’s prior consent thereto.

          5.18. General Indemnity. Borrower shall indemnify, reimburse, defend and hold
harmless Lender and its officers, directors, employees and agents (collectively, the
“Indemnified Parties”) for, from and against any and all Damages of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the Indemnified Parties, in
any way relating to or arising out of the making or holding or enforcement of the Loan by Lender or
the administration of the Transaction to the extent resulting, directly or indirectly, from any
claim (including any Environmental Claim) made (whether or not in connection with any legal action,
suit, or proceeding) by or on behalf of any Person; provided, however, that no
Indemnified Party shall have the right to be indemnified hereunder for its own fraud, bad faith,
gross negligence or willful misconduct. The provisions of and undertakings and indemnification set
forth in this Section 5.18 shall survive the satisfaction and payment in full of the
Indebtedness and termination of this Agreement.

          5.19. Nonbinding Consultation. [intentionally omitted]

          5.20 Compliance with Encumbrances. Borrower covenants and agrees as follows:

     (i) Borrower shall comply with all material terms, conditions and covenants of each
material Permitted Encumbrance on the Property, including any reciprocal easement agreement,
any declaration of covenants, conditions and restrictions, and any condominium arrangements.

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     (ii) Borrower shall promptly deliver to Lender a true and complete copy of each and
every notice of default received by Borrower with respect to any obligation of such Borrower
under the provisions of any such Permitted Encumbrance.

     (iii) Borrower shall deliver to Lender copies of any written notices of default or
event of default relating to any such Permitted Encumbrance served by such Borrower.

     (iv) After the occurrence of an Event of Default, so long as the Loan is outstanding,
Borrower shall not grant or withhold any material consent, approval or waiver under any such
Permitted Encumbrance without the prior written consent of Lender.

     (v) Borrower shall deliver to each other party to any such Permitted Encumbrance notice
of the identity of Lender and each assignee of Lender of which such Borrower is aware if
such notice is required in order to protect Lender’s interest thereunder.

ARTICLE VI

NEGATIVE COVENANTS

          6.1. Liens on the Properties. Neither Borrower nor, if applicable, any Single-Purpose
Equityholder shall permit or suffer the existence of any Lien on any of its assets, other than
Permitted Encumbrances.

          6.2. Ownership. Borrower shall not own any assets other than the Properties and
related personal property and fixtures located therein or used in connection therewith.

          6.3. Transfer. Borrower shall not Transfer any Collateral other than in compliance
with Article II and other than the replacement or other disposition of obsolete or
non-useful personal property and fixtures in the ordinary course of business, and Borrower shall
not hereafter file a declaration of condominium with respect to any of the Properties.

          6.4. Debt. Borrower shall not have any Debt, other than Permitted Debt.

          6.5. Dissolution; Merger or Consolidation. Neither Borrower nor, if applicable, any
Single-Purpose Equityholder shall dissolve, terminate, liquidate, merge with or consolidate into
another Person without first causing the Loan to be assumed by a Qualified Successor Borrower
pursuant to Section 2.2.

          6.6. Change in Business. Borrower shall not make any material change in the scope or
nature of its business objectives, purposes or operations or undertake or participate in activities
other than the continuance of its present business.

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          6.7. Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any
material claim or Debt owed to it by any Person, except for adequate consideration or in the
ordinary course of its business.

          6.8. Affiliate Transactions. Borrower shall not enter into, or be a party to, any
transaction with any affiliate of Borrower, except on terms which are no less favorable to Borrower
than would be obtained in a comparable arm’s length transaction with an unrelated third party.

          6.9. Misapplication of Funds. Borrower shall not (a) distribute any Revenue or Loss
Proceeds in violation of the provisions of this Agreement (and shall promptly cause the reversal of
any such distributions made in error of which Borrower becomes aware), (b) fail to
remit amounts to the Collection Account as required by Section 3.1, or (c)
misappropriate any security deposit or portion thereof.

          6.10. Jurisdiction of Formation. Borrower shall not change its jurisdiction of
formation without receiving Lender’s prior written consent and promptly providing Lender such
information and replacement Uniform Commercial Code financing statements and legal opinions as
Lender may reasonably request in connection therewith.

          6.11. Modifications and Waivers. Unless otherwise consented to in writing by Lender:

     (i) Borrower shall not amend, modify, terminate, renew, waive, or surrender any rights
or remedies under any Lease, or enter into any Lease, except in compliance with Section
5.7;

     (ii) Neither Borrower nor, if applicable, any Single-Purpose Equityholder shall
terminate, amend or modify its organization documents (including, without limitation, any
operating agreement, limited partnership agreement, by-laws, certificate of formation,
certificate of limited partnership or certificate of incorporation);

     (iii) Borrower shall not terminate, amend or modify the Approved Management Agreement;
and

     (iv) Borrower shall not amend, modify, surrender or waive any material rights or
remedies under, or enter into or terminate, or default in its obligations under, any
Material Agreement.

          6.12. ERISA.

          (a) Borrower shall not maintain or contribute to, or agree to maintain or contribute to, or
permit any ERISA Affiliate of Borrower to maintain or contribute to or agree to maintain or
contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV
or Section 302 of ERISA or Section 412 of the Code.

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          (b) Borrower shall not engage in a non-exempt prohibited transaction under Section 406 of
ERISA, Section 4975 of the Code, or substantially similar provisions under federal, state or local
laws, rules or regulations or in any transaction that would cause any obligation or action taken or
to be taken hereunder (or the exercise by Lender of any of its rights under the Notes, this
Agreement, the Mortgages or any other Loan Document) to be a non-exempt prohibited transaction
under such provisions.

          6.13. Alterations and Expansions. During the continuance of an Escrow Period or Event
of Default, Borrower shall not perform or contract to perform any Capital Expenditures that are not
consistent with the Approved Annual Budget. Borrower shall not perform or contract to perform any
Material Alteration without the prior written consent of Lender, which consent (in the absence of
an Event of Default) shall not be unreasonably withheld. If Lender’s consent is requested
hereunder with respect to a Material Alteration, Lender may retain a construction consultant to
review such request and, if such request is granted, Lender may retain
a construction consultant to inspect the work from time to time. Borrower shall, on demand by
Lender, reimburse Lender for the reasonable fees and disbursements of such consultant.

          6.14. Advances and Investments. Borrower shall not lend money or make advances to any
Person, or purchase or acquire any stock, obligations or securities of, or any other interest in,
or make any capital contribution to, any Person, except for Permitted Investments.

          6.15. Single-Purpose Entity. Borrower shall not cease to be a Single-Purpose Entity.

          6.16. Zoning and Uses. Borrower shall not do any of the following:

          (i) initiate or support any limiting change in the permitted uses of any of the Properties (or
to the extent applicable, zoning reclassification of any of the Properties) or any portion thereof,
seek any variance under existing land use restrictions, laws, rules or regulations (or, to the
extent applicable, zoning ordinances) applicable to a Property, or use or permit the use of a
Property in a manner that would result in the use of such Property becoming a nonconforming use
under applicable land-use restrictions or zoning ordinances or that would violate the terms of any
Lease, Material Agreement or Legal Requirement;

          (ii) consent to any modification, amendment or supplement to any of the terms of, or
materially default in its obligations under, any Permitted Encumbrance;

          (iii) impose or consent to the imposition of any restrictive covenants, easements or
encumbrances upon a Property in any manner that adversely affects in any material respect its
value, utility or transferability;

          (iv) execute or file any subdivision plat affecting any of the Properties, or institute, or
permit the institution of, proceedings to alter any tax lot comprising any of the Properties;

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          (v) amend or cause to be amended any of the Material Agreements in any manner that might
diminish (x) the value of the applicable Property or Properties or (y) the rights of Borrower or
Lender thereunder, or terminate the same for any reason or purpose whatsoever, in each case,
without the prior written consent of Lender; or

          (vi) permit or consent to any of the Properties being used by the public or any Person in
such manner as might make possible a claim of adverse usage or possession or of any implied
dedication or easement.

          6.17. Waste. Borrower shall not commit or permit any Waste on any of the Properties,
nor take any actions that might invalidate any insurance carried on any of the Properties (and
Borrower shall promptly correct any such actions of which Borrower becomes aware).

ARTICLE VII

DEFAULTS

          7.1. Event of Default. The occurrence of any one or more of the following events
shall be, and shall constitute the commencement of, an “Event of Default” hereunder (any
Event of Default which has occurred shall continue unless and until waived by Lender in its sole
discretion):

          (a) Payment.

     (i) Borrower shall default in the payment when due of any principal or interest owing
hereunder or under the Notes (including any mandatory prepayment required hereunder); or

     (ii) Borrower shall default, and such default shall continue for at least five Business
Days after notice to Borrower that such amounts are owing, in the payment when due of fees,
expenses or other amounts owing hereunder, under the Notes or under any of the other Loan
Documents (other than principal and interest owing hereunder or under the Note).

          (b) Representations. Any representation made by Borrower in any of the Loan
Documents, or in any report, certificate, financial statement or other instrument, agreement or
document furnished to Lender, or any representation or warranty deemed to have been made by
Borrower in connection with the acquisition of a Qualified Substitute Property, shall have been
false or misleading in any material respect (or, with respect to any representation which itself
contains a materiality qualifier, in any respect) as of the date such representation was made.

          (c) Other Loan Documents. Any Loan Document shall fail to be in full force and effect
or to convey the material Liens, rights, powers and privileges purported to be created thereby; or
a default shall occur under any of the other Loan Documents or Material Agreements, in each case,
beyond the expiration of any applicable cure period.

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          (d) Bankruptcy, etc.

     (i) Borrower or, if applicable, any Single-Purpose Equityholder shall commence a
voluntary case concerning itself under Title 11 of the United States Code (as amended,
modified, succeeded or replaced, from time to time, the “Bankruptcy Code”);

     (ii) Borrower or, if applicable, any Single-Purpose Equityholder shall commence any
other proceeding under any reorganization, arrangement, adjustment of debt, relief of
creditors, dissolution, insolvency or similar law of any jurisdiction whether now or
hereafter in effect relating to Borrower or such Single-Purpose Equityholder, or shall
dissolve or otherwise cease to exist;

     (iii) there is commenced against Borrower or, if applicable, any Single-Purpose
Equityholder an involuntary case under the Bankruptcy Code, or any such other proceeding,
which remains undismissed for a period of 60 days after commencement;

     (iv) Borrower or, if applicable, any Single-Purpose Equityholder is adjudicated
insolvent or bankrupt;

     (v) Borrower or, if applicable, any Single-Purpose Equityholder suffers appointment of
any custodian or the like for it or for any substantial portion of its property and such
appointment continues unchanged or unstayed for a period of 60 days after commencement of
such appointment;

     (vi) Borrower or, if applicable, any Single-Purpose Equityholder makes a general
assignment for the benefit of creditors; or

     (vii) any action is taken by Borrower or, if applicable, any Single-Purpose
Equityholder for the purpose of effecting any of the foregoing.

          (e) Change of Control.

     (i) A Change of Control shall occur; or

     (ii) any party shall acquire more than 49% of the direct or indirect equity interest in
Borrower or a Single-Purpose Equityholder (even if not constituting a Change of Control) and
Borrower shall fail to deliver to Lender with respect to such new equityholder a new
non-consolidation opinion satisfactory to (A) prior to the occurrence of any Securitization
of the Loan, Lender (Lender’s approval of any such non-consolidation opinion which is in
substantially the form of the Nonconsolidation Opinion not to be unreasonably withheld), and
(B) at any time following any Securitization or series of Securitizations of the Loan, each
of the Rating Agencies rating such Securitization or Securitizations.

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          (f) Equity Pledge; Preferred Equity. Any direct equity interest in or right to
distributions from Borrower or Single Purpose Equityholder shall be subject to a Lien in favor of
any Person, or Borrower or Single Purpose Equityholder shall issue preferred equity (or debt
granting the holder thereof rights substantially similar to those generally associated with
preferred equity). Notwithstanding and without limiting the generality of the foregoing, a pledge
of the economic benefits, including the right to distributions from but excluding the direct
ownership interests themselves, in Borrower or Single Purpose Equityholder to U.S. Bank National
Association or any replacement lender to Sponsor is permitted.

          (g) Insurance. Borrower shall fail to maintain in full force and effect all Policies
required hereunder.

          (h) ERISA; Negative Covenants. A default shall occur in the due performance or
observance by Borrower of any term, covenant or agreement contained in Section 5.8 or in
Article VI.

          (i) Other Covenants. A default shall occur in the due performance or observance by
Borrower of any term, covenant or agreement (other than those referred to in subsections
(a) through (h), inclusive, of this Section 7.1) contained in this Agreement or
in any of the other Loan Documents, except that if such default referred to in this subsection
(i) is
susceptible of being cured, such default shall not constitute an Event of Default unless and
until it shall remain uncured for 10 days after Borrower receives written notice thereof, for a
default which can be cured by the payment of money, or for 30 days after Borrower receives written
notice thereof, for a default which cannot be cured by the payment of money; and if a default
cannot be cured by the payment of money but is susceptible of being cured and cannot reasonably be
cured within such 30-day period, and Borrower commences to cure such default within such 30-day
period and thereafter diligently and expeditiously proceeds to cure the same, Borrower shall have
such additional time as is reasonably necessary to effect such cure, but in no event in excess of
90 days from the original notice.

          7.2. Remedies.

          (a) During the continuance of an Event of Default, Lender may by written notice to Borrower,
in addition to any other rights or remedies available pursuant to this Agreement, the Notes, the
Mortgages and the other Loan Documents, at law or in equity, declare by written notice to Borrower
all or any portion of the Indebtedness to be immediately due and payable, whereupon all or such
portion of the Indebtedness shall so become due and payable, and Lender may enforce or avail itself
of any or all rights or remedies provided in the Loan Documents against Borrower and the Properties
(including all rights or remedies available at law or in equity); provided,
however, that, notwithstanding the foregoing, if an Event of Default specified in paragraph
7.1(d) shall occur, then the Indebtedness shall immediately become due and payable without
the giving of any notice or other action by Lender. Any actions taken by Lender shall be
cumulative and concurrent and may be pursued independently, singly, successively, together or
otherwise, at such time and in such order as Lender may determine in its sole discretion, to the
fullest extent permitted by law, without impairing or otherwise affecting the other rights and
remedies of Lender permitted by law, equity or contract or as set forth in this Agreement or in the
other Loan Documents.

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          (b) If Lender forecloses on any of the Properties, Lender shall apply all net proceeds of such
foreclosure to repay the Indebtedness, the Indebtedness shall be reduced to the extent of such net
proceeds and the remaining portion of the Indebtedness shall remain outstanding and secured by the
Properties and the other Loan Documents, it being understood and agreed by Borrower that Borrower
is liable for the repayment of all the Indebtedness; provided, however, that at the
election of Lender, the Notes shall be deemed to have been accelerated only to the extent of the
net proceeds actually received by Lender with respect to the Properties and applied in reduction of
the Indebtedness.

          (c) During the continuance of any Event of Default, Lender may, but without any obligation to
do so and without notice to or demand on Borrower and without releasing Borrower from any
obligation hereunder, take any action to cure such Event of Default. Lender may enter upon any or
all of the Properties upon reasonable notice to Borrower for such purposes or appear in, defend, or
bring any action or proceeding to protect its interest in the Properties or to foreclose the
Mortgages or collect the Indebtedness. The costs and expenses incurred by Lender in exercising
rights under this paragraph (including reasonable attorneys’ fees), with interest at the Default
Rate for the period after notice from Lender that such costs or expenses were incurred to the date
of payment to Lender, shall constitute a portion of the Indebtedness,
shall be secured by the Mortgages and other Loan Documents and shall be due and payable to
Lender upon demand therefor.

          (d) Interest shall accrue on any judgment obtained by Lender in connection with its
enforcement of the Loan at a rate of interest equal to the Default Rate.

          7.3. No Waiver. No delay or omission to exercise any remedy, right or power accruing
upon an Event of Default shall impair any such remedy, right or power or shall be construed as a
waiver thereof, but any such remedy, right or power may be exercised from time to time and as often
as may be deemed by Lender to be expedient. A waiver of any Default or Event of Default shall not
be construed to be a waiver of any subsequent Default or Event of Default or to impair any remedy,
right or power consequent thereon.

          7.4. Application of Payments after an Event of Default. Notwithstanding anything to
the contrary contained herein, during the continuance of an Event of Default, all amounts received
by Lender in respect of the Loan shall be applied at Lender’s sole discretion either toward the
components of the Indebtedness (e.g., Lender’s expenses in enforcing the Loan, interest,
principal and other amounts payable hereunder), and the Notes in such sequence as Lender shall
elect in its sole discretion, or toward the payment of Property expenses.

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ARTICLE VIII

CONDITIONS PRECEDENT

          8.1. Conditions Precedent to Closing. This Agreement shall become effective on the
date that all of the following conditions shall have been satisfied (or waived in accordance with
Section 9.3):

          (a) Loan Documents. Lender shall have received a duly executed copy of each Loan
Document. Each Loan Document which is to be recorded in the public records shall be in form
suitable for recording.

          (b) Collateral Accounts. Each of the Collateral Accounts shall have been established
with the Cash Management Bank and funded to the extent required under Article III.

          (c) Opinions of Counsel. Lender shall have received (i) a Minnesota legal opinion in
substantially the form of Exhibit B-1, (ii) a legal opinion with respect to the laws of
each state in which one of the Properties is located, in substantially the form of Exhibit
B-2, and (iii) a bankruptcy nonconsolidation opinion in substantially the form of Exhibit
B-3 with respect to each Person owning at least a 49% direct or indirect equity interest in
Borrower, if applicable, any Single-Purpose Equityholder and any affiliated property manager, (iv)
a Delaware legal opinion in substantially the form of Exhibit B-4, and (v) a true lease
opinion in form and substance satisfactory to Lender with respect to each Lease between Borrower
and LTF Club Operations, Inc., a Minnesota corporation.

          (d) Organizational Documents. Lender shall have received all documents reasonably
requested by Lender relating to the existence of Borrower, the validity of the Loan
Documents and other matters relating thereto, in form and substance satisfactory to Lender,
including:

     (i) Authorizing Resolutions. A certified copy of the resolutions approving and
adopting the Loan Documents to be executed by Borrower and authorizing the execution and
delivery thereof.

     (ii) Organizational Documents. Certified copies of the organizational
documents of Borrower and, if applicable, any Single-Purpose Equityholder (including any
certificate of formation, certificate of limited partnership, certificate of incorporation,
operating agreement, limited partnership agreement or by-laws), in each case together with
all amendments thereto.

     (iii) Certificates of Good Standing or Existence. Certificates of good
standing or existence for Borrower and, if applicable, any Single-Purpose Equityholder
issued as of a recent date by its state of organization and by each state in which one of
the Properties is located.

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          (e) Lease; Material Agreements. Lender shall have received true and complete copies
of all Leases and all Material Agreements.

          (f) Lien Search Reports. Lender shall have received satisfactory reports of Uniform
Commercial Code, tax lien, bankruptcy and judgment searches conducted by a search firm acceptable
to Lender with respect to the Properties and Borrower (including Borrower’s immediate predecessor,
if any), such searches to be conducted in such locations as Lender shall have requested.

          (g) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date either before or after the execution and delivery of this
Agreement.

          (h) No Injunction. No Legal Requirement shall exist, and no litigation shall be
pending or threatened, which in the good faith judgment of Lender would enjoin, prohibit or
restrain, or impose or result in the imposition of any material adverse condition upon, the making
or repayment of the Loan or the consummation of the Transaction.

          (i) Representations. The representations in this Agreement and in the other Loan
Documents shall be true and correct in all respects on and as of the Closing Date with the same
effect as if made on such date.

          (j) Estoppel Letters. Borrower shall have received and delivered to Lender estoppel
certificates from such parties and in such form and substance as shall be satisfactory to Lender,
each of which shall specify that Lender and its successors and assigns may rely thereon.

          (k) No Material Adverse Effect. No event or series of events shall have occurred
which Lender reasonably believes has had or is reasonably likely to have a Material Adverse Effect.

          (l) Transaction Costs. Borrower shall have paid all Transaction Costs (or provided
for the direct payment of such Transaction Costs by Lender from the proceeds of the Loan).

          (m) Insurance. Lender shall have received certificates of insurance on ACORD Form 28,
demonstrating insurance coverage in respect of the Properties of types, in amounts, with insurers
and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement.
Such certificates shall indicate that Lender and its successors and assigns are named as additional
insured on each liability policy, and that each casualty policy and rental interruption policy
contains a loss payee and mortgagee endorsement in favor of Lender, its successors and assigns.

          (n) Title. Lender shall have received a marked, signed commitment to issue, or a
pro-forma version of, a Qualified Title Insurance Policy in respect of each Property, listing only
such exceptions as are reasonably satisfactory to Lender.

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          (o) Zoning. Lender shall have received evidence reasonably satisfactory to Lender
that each Property is in compliance with all applicable zoning requirements (including a zoning
report, a zoning endorsement if obtainable and a letter from the applicable municipality if
obtainable).

          (p) Permits; Certificate of Occupancy. Lender shall have received a copy of all
Permits necessary for the use and operation of each Property and the certificate(s) of occupancy,
if required, for each Property, all of which shall be in form and substance reasonably satisfactory
to Lender.

          (q) Engineering Report. Lender shall have received a current Engineering Report with
respect to each Property, which report shall be in form and substance reasonably satisfactory to
Lender.

          (r) Environmental Report. Lender shall have received an Environmental Report (not
more than six months old) with respect to each Property which discloses no material environmental
contingencies with respect to the Properties.

          (s) Qualified Survey. Lender shall have received a Qualified Survey with respect to
each Property in form and substance reasonably satisfactory to Lender.

          (t) Appraisal. Lender shall have obtained an Appraisal of each Property satisfactory
to Lender.

          (u) Consents, Licenses, Approvals, etc. Lender shall have received copies of all
consents, licenses and approvals, if any, required in connection with the execution, delivery and
performance by Borrower, and the validity and enforceability, of the Loan Documents, and such
consents, licenses and approvals shall be in full force and effect.

          (v) Financial Information. Lender shall have received the financial information
relating to the Sponsor, Borrower and the Properties required by the loan application
executed by Sponsor and Lender with respect to the Loan and as otherwise required by this
Agreement, which is satisfactory to Lender.

          (w) Annual Budget. Lender shall have received the 2007 Annual Budget with respect to
the Properties.

          (x) Additional Matters. Lender shall have received such other certificates, opinions,
documents and instruments relating to the Loan as may have been reasonably requested by Lender.
All corporate and other proceedings, all other documents (including all documents referred to in
this Agreement and not appearing as exhibits to this Agreement) and all legal matters in connection
with the Loan shall be reasonably satisfactory in form and substance to Lender.

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          8.2. Conditions Precedent to Addition of Qualified Substitute Property. Any addition
of a Qualified Substitute Property to the Collateral which is otherwise permitted hereunder shall
be made only upon satisfaction of the following requirements: 

          (a) Representations and Warranties. Each of the representations and warranties
contained in Article IV of this Agreement shall be true and correct in all material
respects with respect to Borrower acquiring the Property and each Qualified Substitute Property on
and as of the date such Qualified Substitute Property is added to the Collateral except as set
forth in any Exception Report delivered to Lender (provided that any such Exception Report shall be
subject to Lender’s reasonable approval), and Borrower’s acquisition of such Property shall be
deemed to constitute such Obligor’s representation to such effect.

          (b) Loan Documents. Borrower shall have executed, acknowledged and delivered to
Lender, with respect to each Qualified Substitute Property, a Mortgage, an Environmental Indemnity
(or an amendment of the existing Environmental Indemnity) and applicable Uniform Commercial Code
financing statements, in each case with such state-specific modifications as shall be recommended
by counsel admitted to practice in such state and selected by Lender.

          (c) Legal Opinions. Lender shall have received such legal opinions as Lender shall
reasonably request, including a true lease opinion in form and substance satisfactory to Lender
with respect to the Lease between Borrower and LTF Club Operations, Inc., a Minnesota corporation,
with respect to the Qualified Substitute Property.

          (d) Lien Search Reports. Lender shall have received reports of Uniform Commercial
Code, tax lien and judgment searches conducted by a nationally recognized search firm with respect
to the Qualified Substitute Property and Borrower and showing no liens, claims or encumbrances
against such Obligor or the Qualified Substitute Property that are not reasonably approved by
Lender. Such searches to be conducted in such locations as Lender shall have reasonably requested.

          (e) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date either before or after the addition of such Qualified
Substitute Property to the Collateral.

          (f) Tenant Estoppel Letters. Lender shall have received an estoppel letter reasonably
satisfactory to Lender and containing no material exceptions or qualifications (unless reserves
satisfactory to Lender are established with respect thereto) from LTF Club Operations Company, Inc.
and from such other parties as Lender shall reasonably request; and Lender shall have received such
subordination, non-disturbance and attornment agreements as Lender shall reasonably require.

          (g) Transaction Costs. Borrower shall have paid all Transaction Costs.

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          (h) Insurance. Lender shall have received certificates of insurance (on ACORD Form
28, where available) demonstrating insurance coverage in respect of the Qualified Substitute
Property of types, in amounts, with insurers and otherwise in compliance with the terms, provisions
and conditions set forth herein. Such certificates shall indicate that Lender is named as
additional insured on each liability policy, and that each casualty policy and rental interruption
policy contains a loss payee endorsement in favor of Lender.

          (i) Title. Lender shall have received a marked, signed commitment to issue, or a
signed pro-forma version of, a Qualified Title Insurance Policy in respect of the Qualified
Substitute Property, listing only such exceptions as are reasonably satisfactory to Lender
(i.e., either conforming or legal nonconforming). If any Qualified Substitute Property is
subject to a ground lease, such ground lease shall satisfy customary Rating Agency financeability
criteria (including, without limitation, the incorporation of mortgagee notice and cure provisions
and so-called “pickup lease” provisions).

          (j) Zoning. Lender shall have received evidence reasonably satisfactory to Lender
that the Qualified Substitute Property is in compliance in all material respects with all
applicable zoning requirements.

          (k) Permits; Certificate of Occupancy. Lender shall have received a copy of all
material Permits for the use and operation of the Properties and the certificate(s) of occupancy,
if required and obtainable, for the Qualified Substitute Property.

          (l) Engineering and Environmental Reports. Lender shall have received reasonably
satisfactory Environmental Reports and Engineering Reports regarding the Qualified Substitute
Properties and, if corrective measures are recommended therein, the applicable Obligor shall have
either deposited into escrow with the Lender pursuant to documentation reasonably satisfactory to
the Lender 125% of the amount required to fund such corrective measures.

          (m) Expansion Obligations. If any Lease at the Qualified Substitute Property
obligates Borrower to construct expansion space for the applicable Tenant, Borrower shall deliver
to Lender 125% of the amount required to fund the anticipated expense thereof (as reasonably agreed
by Lender and Borrower).

          (n) Qualified Survey. Lender shall have received a Qualified Survey with respect to
the Qualified Substitute Property in form and substance reasonably satisfactory to Lender.

          (o) Consents, Licenses, Approvals, etc. Lender shall have received copies of all
consents, licenses and approvals, if any, required in connection with the execution, delivery and
performance by Borrower, and the validity and enforceability, of the Loan Documents, and such
consents, licenses and approvals shall be in full force and effect.

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          (p) Financial Information. Lender shall have received (i) operating statements for
the Qualified Substitute Property for the prior three years, prepared by an independent certified
public accountant reasonably acceptable to Lender to the extent such statements can be obtained
without undue burden or cost, (ii) current results from operations certified by an officer of the
Sponsor if an Affiliate of Borrower owned the Property for the prior fiscal year, and (iii) such
other financial information as Lender shall reasonably request, which information shall be in form
and substance reasonably satisfactory to Lender.

          (q) Annual Budget. Lender shall have received the then-current Annual Budget with
respect to the Qualified Substitute Property.

          (r) Lease; Material Agreements. Lender shall have received true and complete copies
of all Leases requested in writing by Lender (from a rent roll listing all Leases previously
delivered to Lender) and all Material Agreements.

          (s) Additional Matters. Lender shall have received such other certificates, opinions,
documents and instruments relating to the Loan as may have been reasonably requested by Lender.
All corporate and other proceedings, all other documents (including all documents referred to
herein and not appearing as exhibits hereto) and all legal matters in connection with the Loan
shall be reasonably satisfactory in form and substance to Lender.

ARTICLE IX

MISCELLANEOUS

          9.1. Successors. Except as otherwise provided in this Agreement, whenever in this
Agreement any of the parties to this Agreement is referred to, such reference shall be deemed to
include the successors and permitted assigns of such party. All covenants, promises and agreements
in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of Lender and
its successors and assigns.

          9.2. GOVERNING LAW.

          (A) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF MINNESOTA.

          (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST BORROWER OR THE SPONSOR ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (OTHER THAN ANY ACTION IN RESPECT OF
THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR SECURITY INTEREST CREATED PURSUANT TO ANY LOAN
DOCUMENTS NOT GOVERNED BY THE LAWS OF THE STATE OF MINNESOTA) MAY BE
INSTITUTED IN ANY FEDERAL OR STATE COURT IN MINNESOTA. BORROWER AND THE SPONSOR HEREBY (i)
IRREVOCABLY WAIVE, TO THE FULLEST EXTENT

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PERMITTED BY APPLICABLE LAW, ANY OBJECTION WHICH THEY MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH
A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM, (ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT,
ACTION OR PROCEEDING, AND (iii) IRREVOCABLY CONSENT TO SERVICE OF PROCESS BY MAIL, PERSONAL
SERVICE OR IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED IN SECTION
9.4.

          9.3. Modification, Waiver in Writing. Neither this Agreement nor any other Loan
Document may be amended, changed, waived, discharged or terminated, nor shall any consent or
approval of Lender be granted hereunder, unless such amendment, change, waiver, discharge,
termination, consent or approval is in writing signed by Lender.

          9.4. Notices. All notices, consents, approvals and requests required or permitted
hereunder or under any other Loan Document shall be given in writing by expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of delivery or attempted
delivery, addressed as follows (or at such other address and person as shall be designated from
time to time by any party to this Agreement, as the case may be, in a written notice to the other
parties to this Agreement in the manner provided for in this Section). A notice shall be deemed to
have been given when delivered or upon refusal to accept delivery.

If to Lender:

Goldman Sachs Commercial Mortgage Capital, L.P.

600 East Las Colinas Boulevard, Suite 800

Irving, Texas 75039

Attention: Michael Forbes

with copies to:

Goldman Sachs Commercial Mortgage Capital, L.P.

600 East Las Colinas Boulevard, Suite 450

Irving, Texas 75039

Attention: General Counsel

and

Kroll, McNamara, Evans & Delehanty, LLP

29 South Main Street

West Hartford, Connecticut 06107

Attention: Garrett Delehanty, Esq.

If to Borrower:

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LTF CMBS I, LLC

c/o Life Time Fitness

6442 City West Parkway

Eden Prairie, Minnesota 55344

Attention: Treasurer

with a copy to:

Faegre & Benson LLP

2200 Wells Fargo Center

90 South Seventh Street

Minneapolis, Minnesota 55402

Attention: Scott Anderegg, Esq.

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

          9.6. Headings. The Article and Section headings in this Agreement are included in
this Agreement for convenience of reference only and shall not constitute a part of this Agreement
for any other purpose.

          9.7. Assignment and Participation.

          (a) Except as explicitly set forth in Sections 2.1 and 2.2, Borrower may not
sell, assign or transfer any interest in the Loan Documents or any portion thereof (including
Borrower’s rights, title, interests, remedies, powers and duties hereunder and thereunder).

          (b) Lender and each assignee of all or a portion of the Loan shall have the right from time to
time in its discretion to sell one or more of the Notes or any interest therein (an
“Assignment”) and/or sell a participation interest in one or more of the Notes (a
“Participation”). Borrower agrees reasonably to cooperate with Lender, at Lender’s
request, in order to effectuate any such Assignment or Participation. In the case of an
Assignment, (i) each assignee shall have, to the extent of such Assignment, the rights, benefits
and obligations of the assigning Lender as a “Lender” hereunder and under the other Loan Documents,
(ii) the assigning Lender

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shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to an Assignment, relinquish its rights and be released from its
obligations under this Agreement, and
(iii) one Lender shall serve as agent for all Lenders and shall be the sole Lender to whom
notices, requests and other communications shall be addressed and the sole party authorized to
grant or withhold consents hereunder on behalf of the Lenders (subject, in each case, to
appointment of a Servicer, pursuant to Section 9.22, to receive such notices, requests and
other communications and/or to grant or withhold consents, as the case may be) and to be the sole
Lender to designate the account to which payments shall be made by Borrower to the Lenders
hereunder. Goldman Sachs Mortgage Company shall maintain, or cause to be maintained, as agent for
Borrower, a register at 85 Broad Street, New York, New York or such other address as it shall
notify Borrower in writing, on which it shall enter the name or names of the registered owner or
owners from time to time of the Notes. Borrower agrees that upon effectiveness of any Assignment
of any Note in part, Borrower will promptly provide to the assignor and the assignee separate
promissory notes in the amount of their respective interests (but, if applicable, with a notation
thereon that it is given in substitution for and replacement of an original Note or any replacement
thereof), and otherwise in the form of such Note, upon return of the Note then being replaced. The
assigning Lender shall notify in writing each of the other Lenders of any Assignment. Each
potential or actual assignee, participant or investor in a Securitization, and each Rating Agency,
shall be entitled to receive all information received by Lender under this Agreement. After the
effectiveness of any Assignment, the party conveying the Assignment shall provide notice to
Borrower and each Lender of the identity and address of the assignee. Notwithstanding anything in
this Agreement to the contrary, after an Assignment, the assigning Lender (in addition to the
assignee) shall continue to have the benefits of any indemnifications contained in this Agreement
which such assigning Lender had prior to such assignment with respect to matters occurring prior to
the date of such assignment.

          (c) If, pursuant to this Section 9.7, any interest in this Agreement or any Note is
transferred to any transferee that is not a U.S. Person, the transferor Lender shall cause such
transferee, concurrently with the effectiveness of such transfer, (i) to furnish to the transferor
Lender either Form W-8BEN or Form W-8ECI or any other form in order to establish an exemption from,
or reduction in the rate of, U.S. withholding tax on all interest payments hereunder, and (ii) to
agree (for the benefit of Lender and Borrower) to provide the transferor Lender a new Form W-8BEN
or Form W-8ECI or any forms reasonably requested in order to establish an exemption from, or
reduction in the rate of, U.S. withholding tax upon the expiration or obsolescence of any
previously delivered form and comparable statements in accordance with applicable U.S. laws and
regulations and amendments duly executed and completed by such transferee, and to comply from time
to time with all applicable U.S. laws and regulations with regard to such withholding tax
exemption.

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

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          9.9. Preferences. Lender shall have no obligation to marshal any assets in favor
of Borrower or any other party or against or in payment of any or all of the obligations of
Borrower pursuant to this Agreement, the Notes or any other Loan Document. Lender shall have the
continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to
any portion of the obligations of Borrower hereunder and under the Loan Documents. To the extent
Borrower makes a payment or payments to Lender, which payment or proceeds or any portion thereof
are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law,
common law or equitable cause, then, to the extent of such payment or proceeds received, the
obligations hereunder or portion thereof intended to be satisfied shall be revived and continue in
full force and effect, as if such payment or proceeds had not been received by Lender.

          9.10. Remedies of Borrower. If a claim is made that Lender or its agents have
unreasonably delayed acting or acted unreasonably in any case where by law or under this Agreement,
the Notes, the Mortgages or the other Loan Documents, any of such Persons has an obligation to act
promptly or reasonably, Borrower agrees that no such Person shall be liable for any monetary
damages, and Borrower’s sole remedy shall be limited to commencing an action seeking specific
performance, injunctive relief and/or declaratory judgment.

          9.11. Offsets, Counterclaims and Defenses. All payments made by Borrower hereunder or
under the other Loan Documents shall be made irrespective of, and without any deduction for, any
setoffs or counterclaims. Borrower waives the right to assert a counterclaim, other than a
mandatory or compulsory counterclaim, in any action or proceeding brought against it by Lender
arising out of or in any way connected with the Notes, this Agreement, the other Loan Documents or
the Indebtedness. Any assignee of Lender’s interest in the Loan shall take the same free and clear
of all offsets, counterclaims or defenses which are unrelated to the Loan.

          9.12. No Joint Venture. Nothing in this Agreement is intended to create a joint
venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender,
nor to grant Lender any interest in any Property other than that of mortgagee or lender.

          9.13. Conflict; Construction of Documents. In the event of any conflict between the
provisions of this Agreement and the provisions of the Notes, the Mortgages or any of the other
Loan Documents, the provisions of this Agreement shall prevail.

          9.14. Brokers and Financial Advisors. Borrower and Sponsor each represent that they
have dealt with
no financial advisors, brokers, underwriters, placement agents, agents or finders other than
RBC Capital Advisors in connection with the transactions contemplated by this Agreement. Borrower
and Sponsor each agree, jointly and severally, to indemnify and hold Lender harmless from and
against any and all claims, liabilities, costs and expenses of any kind in any way relating to or
arising from a claim by any Person that such Person acted on behalf of Borrower in connection with
the transactions contemplated in this Agreement. The provisions of this Section 9.14 shall
survive the expiration and termination of this Agreement and the repayment of the Indebtedness.

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

          9.16. Estoppel Certificates. Borrower agrees at any time and from time to time, to
execute, acknowledge and deliver to Lender, within five days after receipt of Lender’s written
request therefor, a statement in writing setting forth (A) the Principal Indebtedness, (B) the date
on which installments of interest and/or principal were last paid, (C) any offsets or defenses to
the payment of the Indebtedness, (D) that the Notes, this Agreement, the Mortgages and the other
Loan Documents are valid, legal and binding obligations and have not been modified or if modified,
giving particulars of such modification, (E) that neither Borrower nor, to Borrower’s knowledge,
Lender, is in default under the Loan Documents (or specifying any such default), and (F) such other
matters as Lender may reasonably request. Any prospective purchaser of any interest in a Loan
shall be permitted to rely on such certificate.

          9.17. Payment of Expenses; Mortgage Recording Taxes. Borrower shall reimburse Lender
upon receipt of written notice from Lender for (i) all reasonable out-of-pocket costs and expenses
incurred by Lender (or any of its affiliates) in connection with the origination of the Loan and
any Property Substitution, including legal fees and disbursements, accounting fees, and the costs
of the Appraisal, the Engineering Report, the Qualified Title Insurance Policy, the Qualified
Survey, the Environmental Report and any other third-party diligence materials; (ii) all reasonable
out-of-pocket costs and expenses incurred by Lender (or any of its affiliates) in connection with
(A) monitoring Borrower’s ongoing performance of and compliance with Borrower’s agreements and
covenants contained in this Agreement and the other Loan Documents on its part to be performed or
complied with after the Closing Date, including confirming compliance with environmental and
insurance requirements, (B) the negotiation, preparation, execution, delivery and administration of
any consents, amendments, waivers or other modifications to this Agreement and the other Loan
Documents and any other documents or matters requested by Borrower or by Lender, (C) filing and
recording fees and expenses and other similar expenses incurred in creating and perfecting the
Liens in favor of Lender pursuant to this Agreement and the other Loan Documents, (D) enforcing or
preserving any rights, in response to third party claims or the prosecuting or defending of any
action or proceeding or other litigation, in each case against, under or affecting Borrower, this
Agreement, the other Loan Documents or any Collateral, and (E) obtaining any Rating Confirmation
required or requested by Borrower hereunder; and (iii) all actual out-of-pocket costs and expenses
(including, if the Loan has been securitized, special servicing fees) incurred by Lender (or any of
its affiliates) in connection with the enforcement of any obligations of Borrower, or a
Default by Borrower, under the Loan Documents, including any actual or attempted foreclosure,
deed-in-lieu of foreclosure, refinancing, restructuring or workout and any insolvency or bankruptcy
proceedings (including any applicable transfer taxes).

          9.18. No Third-Party Beneficiaries. This Agreement and the other Loan Documents are
solely for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other
Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to
insist upon or to enforce the performance or observance of any

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of the obligations contained herein
or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed
solely and exclusively for the benefit of Lender, and no other Person shall have standing to
require satisfaction of such conditions in accordance with their terms or be entitled to assume
that Lender will refuse to make the Loan in the absence of strict compliance with any or all
thereof, and no other Person shall under any circumstances be deemed to be a beneficiary of such
conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s
sole discretion, Lender deems it advisable or desirable to do so.

          9.19. Recourse.

          (a) Except as set forth in Section 9.19(b), in the Environmental Indemnities, in the
Cooperation Agreement, in Section 5.18 and in Section 9.14, no recourse shall be
had for the Indebtedness against any affiliate of Borrower or any officer, director, partner or
equityholder of Borrower or any such affiliate and recourse to Borrower shall be limited to the
Liens of Lender on the Properties and the other Collateral.

          (b) Borrower and the Sponsor (as evidenced by the Sponsor’s signature below) agree to jointly
and severally indemnify Lender and hold Lender harmless from and against any and all Damages to
Lender (including the legal and other expenses of enforcing the obligations of the Borrower and the
Sponsor under this Section 9.19) resulting from or arising out of any of the following (the
“Indemnified Liabilities”), which Indemnified Liabilities shall be guaranteed by Sponsor
pursuant to the Guaranty:

     (i) any intentional physical Waste with respect to any of the Properties committed or
permitted by Borrower, the Sponsor or any of their respective affiliates;

     (ii) any fraud or intentional misrepresentation committed by Borrower, the Sponsor or
any of their respective affiliates;

     (iii) the misappropriation or misapplication by Borrower, the Sponsor or any of their
respective affiliates of any funds (including misappropriation or misapplication of
Revenues, security deposits and/or Loss Proceeds and the violation of the last sentence of
Section 5.7(d));

     (iv) any Transfer of Collateral, the creation of any voluntary Lien on Collateral or
the collusion by Borrower or any Affiliate of Borrower in the creation of an involuntary
Lien on Collateral, or Change of Control which is prohibited hereunder;

     (v) any breach by Borrower or the Sponsor of any representation or covenant regarding
environmental matters contained in this Agreement or in the Environmental Indemnities;

     (vi) the failure of Borrower, at any time, to be a Single-Purpose
Entity;

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     (vii) the failure of Borrower to pay any Taxes or to maintain any insurance policies
required by this Agreement except to the extent sufficient funds for such payment and
maintenance are then held in the Basic Carrying Costs Escrow Account and Lender does not
then have the right to cause the application of such funds to the Loan or other obligations
of Borrower hereunder;

     (viii) the occurrence of any filing by Borrower under the Bankruptcy Code or any
joining or colluding by Borrower or any of its affiliates (including Sponsor) in the filing
of an involuntary case in respect of Borrower under the Bankruptcy Code; provided
that, because the Damages to Lender resulting from the occurrence of an event described in
this clause (vii) (including the costs to Lender of delay in realizing upon the Collateral
and the additional resources required of Lender in connection with such delay) would be
significant but difficult to quantify, the Damages payable to Lender upon such an occurrence
shall be deemed to equal 10% of the Loan Amount, which represents Lender’s, Borrower’s and
Sponsor’s reasonable and fair estimates of the amount of such Damages and is agreed by such
parties to constitute reasonable liquidated damages and not a penalty; and

     (ix) the failure of Borrower to enforce or of Sponsor to pay and perform its
obligations under any guaranty of any Lease to LTF CO.

          (c) The liability of the Sponsor and Borrower under Section 9.19(b) shall be direct
and immediate and not conditional or contingent upon the pursuit of any remedies against Borrower
or any other Person, nor against the Collateral, and shall not be impaired or limited by any event,
including, without limitation, the following events, in each case whether occurring with or without
notice to the Sponsor or with or without consideration:

     (i) any extensions of time for performance required by any of the Loan Documents or any
extension or renewal of the Notes;

     (ii) any sale, assignment or foreclosure of the Notes, the Mortgages or any of the
other Loan Documents or any sale or transfer of any or all of the Properties;

     (iii) any Assumption or any other change in the composition of Borrower including the
withdrawal or removal of the Sponsor from any current or future position of ownership,
management or control of Borrower;

     (iv) the accuracy or inaccuracy of the representations made by Borrower in any of the
Loan Documents;

     (v) the release of Borrower or of any other Person from performance or observance of
any of the agreements, covenants, terms or conditions contained in any of the Loan Documents
by operation of law, Lender’s voluntary act or otherwise; or

     (vi) the modification of the terms of any one or more of the Loan Documents.

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The Sponsor acknowledges that Lender would not make the Loan but for the personal liability
undertaken by the Sponsor in this Agreement and in the Guaranty. The Sponsor agrees that its
rights and obligations are subject to the terms and conditions of the Guaranty.

          (d) The foregoing limitations on personal liability shall in no way impair or constitute a
waiver of the validity of the Notes, the Indebtedness secured by the Collateral, or the Liens on
the Collateral, or the right of Lender, as mortgagee or secured party, to foreclose and/or enforce
its rights with respect to the Collateral after an Event of Default. Nothing in this Agreement
shall be deemed to be a waiver of any right which Lender may have under the United States
Bankruptcy Code to file a claim for the full amount of the debt owing to Lender by Borrower or to
require that all Collateral shall continue to secure all of the Indebtedness owing to Lender in
accordance with the Loan Documents. Lender may seek a judgment on the Note (and, if necessary,
name Borrower in such suit) as part of judicial proceedings to foreclose under the Mortgages or to
foreclose pursuant to any other Loan Documents, or as a prerequisite to any such foreclosure or to
confirm any foreclosure or sale pursuant to power of sale thereunder, and in the event any suit is
brought on the Notes, or with respect to any Indebtedness or any judgment rendered in such judicial
proceedings, such judgment shall constitute a Lien on and will be and can be enforced on and
against the Collateral and the rents, profits, issues, products and proceeds thereof. Nothing in
this Agreement shall impair the right of Lender to accelerate the maturity of the Note upon the
occurrence of an Event of Default, nor shall anything in this Agreement impair or be construed to
impair the right of Lender to seek personal judgments, and to enforce all rights and remedies under
applicable law, jointly and severally against any guarantors to the extent allowed by any
applicable guarantees. The provisions set forth in this Section 9.19 are not intended as a
release or discharge of the obligations due under the Note or under any Collateral Documents, but
are intended as a limitation, to the extent provided in this Section, on Lender’s right to sue for
a deficiency or seek a personal judgment against Borrower or Sponsors.

          9.20. Right of Set-Off. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence
and during the continuance of an Event of Default, Lender may from time to time, without
presentment, demand, protest or other notice of any kind (all of such rights being hereby expressly
waived), set-off and appropriate and apply any and all deposits (general or special) and any other
indebtedness at any time held or owing by Lender (including branches, agencies or affiliates of
Lender wherever located) to or for the credit or the account of Borrower against the obligations
and liabilities of Borrower to Lender hereunder, under the Notes, the other Loan Documents or
otherwise, irrespective of whether Lender shall have made any demand hereunder and although such
obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any such
set-off shall be deemed to have been made immediately upon the occurrence of an Event of Default
even though such charge is made or entered on the books of Lender subsequent thereto.

          9.21. Exculpation of Lender. Lender neither undertakes nor assumes any
responsibility or duty to Borrower or any other party to select, review, inspect, examine,
supervise, pass judgment upon or inform Borrower or any third party of (a) the existence,

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quality,
adequacy or suitability of Appraisals of the Properties or other Collateral, (b) any environmental
report, or (c) any other matters or items, including engineering, soils and seismic reports which
are contemplated in the Loan Documents. Any such selection, review, inspection, examination and
the like, and any other due diligence conducted by Lender, is solely for the purpose of protecting
Lender’s rights under the Loan Documents, and shall not render Lender liable to Borrower or any
third party for the existence, sufficiency, accuracy, completeness or legality thereof.

          9.22. Servicer. Lender may delegate any and all rights and obligations of Lender
hereunder and under the other Loan Documents to the Servicer upon notice by Lender to Borrower,
whereupon any notice or consent from the Servicer to Borrower, and any action by Servicer on
Lender’s behalf, shall have the same force and effect as if Servicer were Lender.

          9.23 Prior Agreements. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS CONTAIN THE
ENTIRE AGREEMENT OF THE PARTIES HERETO AND THERETO IN RESPECT OF THE TRANSACTIONS CONTEMPLATED
HEREBY AND THEREBY, AND ALL PRIOR AGREEMENTS AMONG OR BETWEEN SUCH PARTIES, WHETHER ORAL OR
WRITTEN, INCLUDING ANY TERM SHEETS, CONFIDENTIALITY AGREEMENTS AND COMMITMENT LETTERS, ARE
SUPERSEDED BY THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT THAT ANY
INDEMNIFICATION PROVIDED FOR IN ANY SUCH TERM SHEET OR COMMITMENT LETTER SHALL SURVIVE THE
CLOSING).

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          Lender and Borrower are executing this Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	GOLDMAN SACHS COMMERCIAL MORTGAGE CAPITAL, L.P.,

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

(signature page to Loan Agreement)

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          Lender and Borrower are executing this Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	LTF CMBS I, LLC

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LTF CMBS Managing Member, Inc., 

a Delaware corporation	 	 
	 

	 	 	 	Its Managing Member	 	 

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

SPONSOR (solely with respect to Sections 9.14 and 9.19 hereof):

LIFE TIME FITNESS, INC.

a Minnesota corporation

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

(signature page to Loan Agreement)

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Exhibit A-1

Collection Account Agreement

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Exhibit A-2

Cash Management Agreement

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Exhibit B-1

Form of Minnesota Opinion Letter

                                         , 20__

[LENDER]

[ADDRESS]

[ADDRESS]

     Re: Loan From Goldman Sachs Commercial Mortgage Capital, L.P. to                      [LLC]

Ladies and Gentlemen:

     [Lead-in to be completed by Minnesota Counsel]

	I.	 	Documents Reviewed.

     In issuing this opinion, we have reviewed executed copies of the following documents in
connection with the Loan:

     [LIST DOCUMENTS REVIEWED]

	II.	 	Opinions.

     We are of the opinion that:

     1. The Company has all requisite [limited liability company][limited partnership] [corporate]
power and authority to own the Properties, borrow money and to execute and deliver the Loan
Documents, and the power to perform its obligations under such Loan Documents. [Add equivalent
opinion for each Sponsor].

     2. The Company has taken all necessary [limited liability company][limited
partnership][corporate] action, to duly authorize the execution, delivery and performance of the
Loan Documents to which it is a party. [Add equivalent opinion for each Sponsor].

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     3. The Company and each Sponsor has duly executed and delivered the Loan Documents to
which it is a party.

     4. Each of the Loan Documents is the valid and binding obligation of the Company, and each of
the Loan Documents is the valid and binding obligation of each Sponsor that is a party thereto,
enforceable in accordance with its terms, except as may be limited by (i) bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium, or other laws applicable to or affecting the
rights of creditors generally, and (ii) general principles of equity (regardless of whether
considered in a proceeding in equity or at law). The aforesaid opinion as to enforceability of the
Loan Documents as against the Company does not mean that every provision contained in the Loan
Documents is valid or enforceable against the Company, but such invalidity or unenforceability will
not render the Loan Documents invalid as a whole or preclude: (a) the judicial enforcement of the
obligation of the Company to repay the principal, together with interest thereon (to the extent not
deemed a penalty), as provided in the Loan Documents, and (b) acceleration of the obligation of the
Company to repay such principal, together with such interest, upon a material default by the
Company in the payment of such principal and interest.

     5. The execution and delivery by the Company of the Loan Documents to which it is a party does
not, and the performance by the Company of its obligations under each of the Loan Documents to
which it is a party will not, require any consent, authorization or approval of any governmental
authority or entity of the State of Minnesota that has not been previously obtained.

     6. Neither the execution nor the delivery by the Company of any of the Loan Documents to which
it is a party will contravene any law, statute, or regulation of the State of Minnesota applicable
to the Company.

     7. To our knowledge, neither the execution nor the delivery by the Company of any of the Loan
Documents to which it is a party will violate the organizational documents of the Company or any
order, writ, injunction or decree issued by any court of competent jurisdiction of the State of
Minnesota or any material agreement to which the Company or any Sponsor is a party.

     8. To our knowledge, there is no action, litigation, proceeding or governmental investigation
pending against or affecting the Properties, the improvements located thereon or the Company before
any court, quasi-judicial body or administrative agency of the State of Minnesota.

     9. A court of the State of Minnesota applying Minnesota law will give effect to the choice of
the laws of the State of Minnesota in the Loan Documents to govern the Loan Documents, to the
extent the Loan Documents provide they are to be so governed.

     10. The Loan, as made pursuant to the terms of the Loan Documents, complies with or is exempt
from applicable Minnesota laws pertaining to usury.

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     This opinion may be relied upon by you and your successors and assigns (including a trustee in
connection with a securitization) and by any rating agencies which rate securities issued in
connection with a securitization of the Loan.

[Insert Signature Block]

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Exhibit B-2

Form of Local Counsel Opinion Letter

                                         ___, 20___

[LENDER]

[ADDRESS]

[ADDRESS]

     Re: Loan From Goldman Sachs Commercial Mortgage Capital, L.P. to                      [LLC]

Ladies and Gentlemen:

     [Lead-in to be completed by Local Counsel]

	I.	 	Documents Reviewed.

     In issuing this opinion, we have reviewed executed copies of the following documents in
connection with the Loan:

     [LIST DOCUMENTS REVIEWED]

	II.	 	Opinions.

     We are of the opinion that:

     (1) The Company is duly qualified to own and operate the Mortgaged Property and to
conduct any business conducted by the Company relating to the Mortgaged Property in the State of
[                    ].

     (2) Assuming each Loan Document has been duly authorized, executed and delivered, each of the
Loan Documents constitutes the valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, and each contains adequate and customary remedies
for the practical realization of the benefits and the security afforded therein.

     (3) (a) The Mortgage is in proper form under the applicable laws of the State of [                    ] to
be accepted for recording by the [                    ] of [Counties]/[State]. The Mortgage is also in
proper form under the applicable laws of the State of [                    ] to be accepted for recording by
the [                    ] of [Counties]/[                    ] as a fixture filing. Upon due recordation in [identify
office[s]], the Mortgage will create in favor of the Lender a valid, enforceable, and perfected
mortgage lien of record on the entire interest of the Company in that portion of the Mortgaged
Property, including fixtures, that constitutes real property (the “Real Property”), as security for
the payment and performance of the Company’s obligations under the Loan Documents.

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     (b) The Loan Documents create a valid security interest in all of that portion of the
Mortgaged Property (the “Personal Property”) that is subject to the provisions of [Article
9] of the [                    ] Uniform Commercial Code (the “UCC”), to the extent such security interest
can be created by a security agreement under the UCC.

     (4) The terms and provisions of the Mortgage and the other Loan Documents with respect to the
performance of the Company’s obligations and the powers and remedies of the Lender thereunder
provide protection to the Lender equal to that customarily provided in (a) mortgages of real
property and fixtures and (b) assignments of rents and leases with respect to real property located
in the State of [                    ] given to banks and financial institutions in transactions involving
substantial amounts of credit.

     (6) [Except for...,there][There] will be no transfer, documentary stamp, mortgage, mortgage
registry, mortgage recording or other taxes payable to any governmental authority in the State of
[                    ] in connection with the execution, delivery, enforcement, recordation, filing or perfection
of any of the Loan Documents, except for customary per page or per document filing and recording
fees payable upon the recordation or filing of any of the Loan Documents which are subject to
recording or filing and court costs and fees that may be payable in connection with the enforcement
of any of the Loan Documents.

     (7) A federal court sitting in the State of [                    ] and applying the conflict of law rules of
the State of [                    ], and the state courts in the State of [                    ], would give effect to the choice
of law provisions contained in the Loan Documents.1

     (8) A holder of any of the Notes will not incur any tax liability or be required to obtain any
license, approval, or authorization in the State of [                    ] solely as a result of its making the
Loan, the acquisition and holding of any of the Notes or the receipt of payments thereon in
accordance with the terms of the Loan Documents or any other documents being executed in connection
therewith.

     (9) Except as set forth herein, no order, consent, approval, license or authorization of, or
filing, recording or registration with, any governmental or public body or authority of the State
of [                    ] or any agency or political subdivision thereof is required in connection with (i) the
execution, delivery and performance by the Company of its obligations under any Loan Document or
(ii) the validity, binding effect or enforceability of any Loan Document.

     (10) None of the execution, delivery or performance by the Company of any of the Loan
Documents will (i) contravene any law, statute or regulation of the State of [                    ] or any agency
or political subdivision thereof or (ii) to the best of our knowledge, violate any order, writ,
injunction or decree issued by any court or governmental authority of the State of [                    ] or any
agency or political subdivision thereof or (iii) to the best of our knowledge, violate any

 

			
	1	 	Please note that, if Local Counsel is not
able to give this opinion as an unqualified opinion, an opinion that the Loan
Agreement and Notes would be enforceable under the law of the State of
[                    ] if such law were held to apply will be required.

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material agreement to which the Company is a party, including those agreements identified
as “Material Agreements” in Schedule F of the Loan Agreement.

     (11) The Loan evidenced by the Notes does not violate the usury laws or laws regulating the
use or forbearance of money of the State of [___]. The operation of any term of the Loan
Documents, including, without limitation, the terms regarding late charges, default interest or
prepayment premiums, or the lawful exercise of any right thereunder, shall not render the Loan
Documents unenforceable, in whole or in part, or subject to any right of rescission, set-off,
counterclaim or defense.

     (12) We know of no pending or threatened lawsuits, claims or proceedings against the Company
or the Mortgaged Property.

          This opinion may be relied upon by you and your successors and assigns (including a trustee in
connection with a securitization) and by any rating agencies which rate securities issued in
connection with a securitization of the Loan.

[Insert Signature Block]

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Exhibit B-3

Form of Non-Consolidation Opinion Letter

                     ___, 20___

[LENDER]

[ADDRESS]

[ADDRESS]

     Re: Loan From Goldman Sachs Commercial Mortgage Capital, L.P. to                      [LLC]

Ladies and Gentlemen:

     You have requested our opinion as to whether a court of competent jurisdiction would, in the
event that [INSERT AFFILIATED ENTITIES] were to become a
debtor under II U.S.C. Sections 101 et
seq. (the “Bankruptcy Code”), disregard the separate existence of the Company so as to order the
substantive consolidation of the assets and liabilities of the Company with the assets and
liabilities of [INSERT AFFILIATED ENTITIES] and treat such assets and liabilities as though the
Company and [INSERT AFFILIATED ENTITIES] were one entity.

     Opinion

     In the event that [INSERT AFFILIATED ENTITIES] were to be a debtor in a case under the
Bankruptcy Code, it is our opinion that, under present reported decisional authority and statutes
applicable to federal bankruptcy cases, in a properly presented and argued case, a court would not,
in the proper exercise of its equitable discretion, disregard the separate existence of the Company
so as to order substantive consolidation under the Bankruptcy Code of the assets and liabilities of
[INSERT AFFILIATED ENTITIES] with the assets and liabilities of the Company and treat such assets
and liabilities as though the Company and [INSERT AFFILIATED ENTITIES] were one entity.

     This opinion may be relied upon by you and your successors and assigns (including a trustee in
connection with a securitization) and by any rating agencies which rate securities issued in
connection with a securitization of the Loan.

[Insert Signature Block]

Goldman Sachs Commercial Mortgage Capital, L.P.

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Exhibit B-4

Form of Delaware Opinion Letter

                     ___, 20__

[LENDER]

[ADDRESS]

[ADDRESS]

     Re: Loan From Goldman Sachs Commercial Mortgage Capital, L.P. to                      [LLC]

Ladies and Gentlemen:

     [Lead-in to be completed by Delaware Counsel]

I. Documents Reviewed.

     In issuing this opinion, we have reviewed executed copies of the following documents in
connection with the Loan:

     [LIST DOCUMENTS REVIEWED]

II. Opinions.

     We are of the opinion that:

     1. The Company has been duly formed and is validly existing in good standing as a [limited
liability company][limited partnership][corporation] under the laws of the State of Delaware.

     2. The [LLC Agreement][LP Agreement][By-Laws] [are][constitutes a] legal, valid and binding
[agreement of the [Member[s]][Partner[s]] of the Company], and [is][are] enforceable [against the
[Member[s]][Partner[s]]], in accordance with [its][their] terms.

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     3. If properly presented to a Delaware court, a Delaware court applying Delaware law would
conclude that (i) until such time as the Loan is paid in full or otherwise satisfied, in order for
a Person to file a voluntary bankruptcy petition on behalf of the Company, the prior unanimous
affirmative vote or written consent of the [Board of Managers][Board of Directors] [of the general
partner of the Company] (including the Independent [Managers][Directors] [thereof]), as provided
for in Section ___ of the [LLC Agreement][By-Laws][of the general partner of the Company], is
required, and (ii) such provision, contained in Section
___ of the [LLC Agreement][By-Laws][of the
general partner of the Company], that requires, until such time as the Loan is paid in full or
otherwise satisfied, the prior unanimous affirmative vote or written consent of the [Board of
Managers][Board of Directors][of the general partner of the Company] (including the Independent
[Managers][Directors][thereof]), in order for a Person to file a voluntary bankruptcy petition on
behalf of the Company, [is][constitutes a] legal, valid and binding [agreement of the
[Member[s]][of the general partner of the Company]], and is enforceable [against the [Member[s]][of
the general partner of the Company]], in accordance with its terms.

     [4.
Under the Delaware Limited Liability Company Act, 6 Del. C,
§ 18-101, et. seq.
(the “LLC Act”) and the LLC Agreement, the Bankruptcy or dissolution of [any of] the Member[s] will
not, by itself, cause the Company to be dissolved or its affairs to be wound up.

     5. While under the LLC Act, on application to a court of competent jurisdiction, a judgment
creditor of [any] Member may be able to charge [such] Member[’s] share of any profits and losses of
the Company and [such] Member[’s] right to receive distributions of the Company’s assets (a
“Member’s Interest”) with payment of the unsatisfied amount of the judgment with interest, to the
extent so charged, the judgment creditor of [such] Member has only the rights of an assignee of
[such] Member’s Interest, and the judgment creditor of [such] Member may not attach specific
assets of the Company directly. Thus, under the LLC Act, a judgment creditor of [any] Member may
not satisfy its claims against [such] Member by asserting a claim against the assets of the
Company.

     6. Under the LLC Act (i) the Company is a separate legal entity, and (ii) the existence of the
Company as a separate legal entity shall continue until the cancellation of the LLC Certificate.]

     7. A federal bankruptcy court would hold that Delaware law, and not federal law, governs the
determination of what persons or entities have authority to file a voluntary bankruptcy petition on
behalf of the Company.

     8. The execution and delivery by the Company of the Loan Documents, and the performance by the
Company of its obligations thereunder, do not violate (i) any Delaware law, rule or regulation, or
(ii) the organizational documents of the Company.

     9. No authorization, consent, approval or order of any Delaware court or any Delaware
governmental or administrative body is required solely in connection with the execution and
delivery by the Company of the Loan Documents, or the performance by the Company of its obligations
thereunder.

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     10. The Financing Statements comply with all applicable provisions of the UCC and are in
proper form for filing with [identify offices]. Upon filing with [identify offices], the Financing
Statements will perfect the security interests of the Lender in the collateral described therein,
including the Personal Property, and no other filing will be required to maintain the perfection of
the security interests of the Lender in such collateral.

     This opinion may be relied upon by you and your successors and assigns (including a trustee in
connection with a securitization) and by any rating agencies which rate securities issued in
connection with a securitization of the Loan.

[Insert Signature Block]

Goldman Sachs Commercial Mortgage Capital, L.P.

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Exhibit C

Form of Tenant Notice

[BORROWER’S LETTERHEAD]

                    , 20___

			
	Re:	 	Lease dated [_____], 200_ between [_____],

as Landlord, and [_____], as Tenant,

concerning premises known as [_____] (the “Building”).

Dear Tenant:

     [As of                     , 200_,                     , the owner of the Building, has transferred the Building to
                     (the “New Landlord”).] The undersigned hereby directs and authorizes you to make all
rental payments and other amounts payable by you pursuant to your lease as follows:

(x) If the payment is made by wire transfer, you shall transfer the applicable funds to the
following account:

Bank:

Account Name

Account No.:

ABA No.:

Contact:

(y) If the payment is made by check, you shall deliver your payment to the following address:
[LOCKBOX ADDRESS].

     [In addition, please amend the insurance policies which you are required to maintain under
your lease to include the new owner as an additional insured thereon.]

     The instructions set forth herein are irrevocable and are not subject to modification by us or
the New Landlord in any manner. Only [name of then-current Lender], or its successors and assigns,
may by written notice to you rescind or modify the instructions contained herein.

     Thank you in advance for your cooperation and if you have any questions, please call                     
at (___) ___-                    .

Very truly yours,]

Goldman Sachs Commercial Mortgage Capital, L.P.

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Schedule A

Property

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Schedule B

Exception Report

Two 5 year renewal options set forth in LTF CO Lease, and right of first offer in favor of LTF CO
in the event of a sale to an unrelated third party but not applicable to the granting of or
foreclosure or deed in lieu of foreclosure of any Mortgage.

The title policy on Sugarland, Texas insures over a $4,602.75 mechanic’s lien recorded December 15,
2004 in Clerk’s File No 20041511353 of the Official Records of Fort Bend County, Texas in favor of
S.T.A.R. Concrete Pumping Company, Inc. Borrower contests the validity of the claim. Suit must be
filed on the lien within two years, four months and fifteen days from its recordation. Borrower
has escrowed 150% of the amount claimed with First American Title Insurance Company

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Schedule C

[none]

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Schedule D

Initial Values

	 	 	 	 	 
	Tempe, Arizona
	 	$	31,000,000	 
	 
	Commerce, Michigan
	 	$	21,500,000	 
	 
	Garland, Texas
	 	$	29,000,000	 
	 
	Flower Mound, Texas
	 	$	28,000,000	 
	 
	Sugar Land, Texas
	 	$	28,520,000	 
	 
	Willowbrook, Texas
	 	$	28,910,000	 

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Schedule E

[none]

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Schedule F

Rent Roll

LTF CO Lease of even date herewith, initial term to 2/5/22, two 5 year renewal options, first offer
right in favor of LTF CO in the event of a sale to an unrelated third party but not applicable to
the granting of or foreclosure or deed in lieu of foreclosure of any Mortgage.

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Schedule G

Material Agreements

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Schedule H

Allocated Loan Amounts

	 	 	 	 	 
	Tempe, Arizona
	 	$	19,266,054	 
	 
	Commerce, Michigan
	 	$	16,135,324	 
	 
	Garland, Texas
	 	$	17,339,448	 
	 
	Flower Mound, Texas
	 	$	17,339,448	 
	 
	Sugar Land, Texas
	 	$	17,339,448	 
	 
	Willowbrook, Texas
	 	$	17,580,278	 

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Schedule I

Organizational Chart

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Schedule J

Intentionally deleted

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[Schedule K

Ground Leases]

None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]