NOTE 6: SECURED NOTES PAYABLE Secured notes payable consist of the following (in thousands): December 31, 2003 2002 8.45% note, due in August 2004, secured by one property in Lexington, MA $ 3,342 $ - L o an a t LIB OR plus 1.7%, due January 2005, secured by two properties in San Francisco, CA 22,520 21,853 8.75% note, due January 2006, with an effective interest rate of 7.25% (includes unamortized premium of $252 and $374 at December 31, 2003 and 2002, respectively), secured by one property in Worcester, MA 9,735 10,286 8.68% note, due December 2006, secured by two properties in Durham, NC 11,880 12,038 8.25% note, due August 2007, secured by three properties in Gaithersburg, MD 9,700 9,808 9.125% note, due October 2007, with an effective interest rate of 7.25% (includes unamortized premium of $1,379 at December 31, 2002), secured by one property in Cambridge, MA - 18,777 7.22% note, due May 2008, secured by two properties, one in Chantilly, VA and the other in Seattle, WA 34,410 34,852 6.95% note, due July 2009, secured by four properties in San Diego, CA 40,225 41,259 8.71% note, due January 2010, secured by two properties, one in Worcester, MA and the other in San Diego, CA 18,396 18,542 8.33% note, due November 2010, secured by two properties in Gaithersburg, MD 24,131 24,327 7.75% note, due July 2011, secured by six properties in San Diego, CA 23,633 23,839 7.40% note, due January 2012, secured by three properties in Gaithersburg, MD 27,778 28,031 6.21% note, due March 2013, secured by four properties, three in Alameda, CA and one in San Diego, CA 33,564 - 6.36% note, due in September 2013, secured by three properties, two in Rockville, MD and one in Beltsville, MD 29,898 - 7.165% note, due January 2014, secured by one property in Alameda, CA 2,138 3,520 7.75% note, due June 2016, secured by two properties in Seattle, WA 17,318 18,109 7.50% note, due August 2021, secured by one property in San Diego, CA 11,339 11,637 $ 320,007 $ 276,878 As of December 31, 2003, all of our secured notes payable, except for the 7.165% note, require monthly payments of principal and interest. The 7.165% note requires monthly payments of interest and semi-annual payments of principal. The LIBOR-based loan secured by the two properties in San Francisco, CA, may be extended, at our option, for an additional year. Future principal payments due on secured notes payable as of December 31, 2003, are as follows (in thousands): A loan related to a property developed in the San Francisco Bay market has a maturity date of 2005, which may be extended at our option for an additional year. If we extend the maturity date of this loan, the weighted average interest rates for 2005 and 2006 would be 7.29% and 5.57%, respectively Weighted Average Year Amount Interest Rate 2004 $ 9,415 7.69% 2005 28,370 3.82% 2006 25,571 7.89% 2007 15,123 7.86% 2008 37,859 7.22% Thereafter 203,417 7.29% Subtotal 319,755 7.06% Unamortized premium 252 $320,007 46