Document:

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                                                                   Exhibit 10.16

                           SECOND AMENDED AND RESTATED
                            REVOLVING LOAN AGREEMENT

                          Dated as of February 11, 2000

                                      among

                      ALEXANDRIA REAL ESTATE EQUITIES, INC.
                      ALEXANDRIA REAL ESTATE EQUITIES, L.P.
                                 ARE - QRS CORP.
                              ARE ACQUISITIONS, LLC
                               THE OTHER BORROWERS
                         NOW OR HEREAFTER A PARTY HERETO

                             THE BANKS HEREIN NAMED

                        THE OTHER BANKS WHICH MAY BECOME
                            PARTIES TO THIS AGREEMENT

                       BANKBOSTON, N.A., as Managing Agent

                 THE CHASE MANHATTAN BANK, as Syndication Agent

                FIRST UNION NATIONAL BANK, as Documentation Agent

                       SOCIETE GENERALE SOUTHWEST AGENCY,
                          KEYBANK, NATIONAL ASSOCIATION
                    and DRESDNER BANK AG, NEW YORK and GRAND
                          CAYMAN BRANCHES, as Co-Agents

                                       and

                     BANCBOSTON ROBERTSON STEPHENS, INC. and
                     CHASE SECURITIES, INC., as Co-Arrangers

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<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                           PAGE
<S>                                                                                                         <C>
Article 1
         DEFINITIONS AND ACCOUNTING TERMS.....................................................................2
         1.1     Defined Terms................................................................................2
         1.2     Use of Defined Terms........................................................................28
         1.3     Accounting Terms............................................................................28
         1.4     Rounding....................................................................................28
         1.5     Exhibits and Schedules......................................................................28
         1.6     References to "Borrowers and Their Subsidiaries"............................................29
         1.7     Miscellaneous Terms.........................................................................29

Article 2
         LOANS...............................................................................................29
         2.1     Committed Loans-General.....................................................................29
         2.2     Alternate Base Rate Loans...................................................................30
         2.3     Libor Rate Loans............................................................................30
         2.4     Competitive Advances........................................................................31
         2.5     Swing Loan Commitments......................................................................34
         2.6     Letters of Credit.  ........................................................................37
         2.7     Voluntary Reduction of Commitments..........................................................40
         2.8     Optional Termination of Commitments.........................................................40
         2.9     Managing Agent's Right to Assume Funds Available for Advances...............................40
         2.10    Extension of Maturity Date..................................................................41
         2.11    Unencumbered Asset Pool.....................................................................42
         2.12    Representative of Borrowers.................................................................42

Article 3
         PAYMENTS AND FEES...................................................................................43
         3.1     Principal and Interest......................................................................43
         3.2     Closing Fee.................................................................................45
         3.3     [Intentionally Omitted.]....................................................................45
         3.4     Commitment Fee..............................................................................46
         3.5     Agency Fee..................................................................................46
         3.6     Extension Fees..............................................................................46
         3.7     Increased Commitment Costs..................................................................46
         3.8     Libor Costs and Related Matters.............................................................46
         3.9     Late Payments...............................................................................50
         3.10    Computation of Interest and Fees............................................................51
         3.11    Non-banking Days............................................................................51
         3.12    Manner and Treatment of Payments............................................................51
         3.13    Funding Sources.............................................................................52

                                       i
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         3.14    Failure to Charge Not Subsequent Waiver.....................................................52
         3.15    Managing Agent's Right to Assume Payments Will Be Made By Borrowers.........................52
         3.16    Fee Determination Detail....................................................................53
         3.17    Survivability...............................................................................53

Article 4
         REPRESENTATIONS AND WARRANTIES......................................................................53
         4.1     Existence and Qualification; Power; Compliance With Laws....................................53
         4.2     Authority; Compliance With Other Agreements and Instruments and Government Regulations......53
         4.3     No Governmental Approvals Required..........................................................54
         4.4     Subsidiaries................................................................................54
         4.5     Financial Statements........................................................................54
         4.6     No Other Liabilities; No Material Adverse Changes...........................................55
         4.7     Title to Property...........................................................................55
         4.8     Intangible Assets...........................................................................55
         4.9     Public Utility Holding Company Act..........................................................55
         4.10    Litigation..................................................................................55
         4.11    Binding Obligations.........................................................................56
         4.12    No Default..................................................................................56
         4.13    Erisa.......................................................................................56
         4.14    Regulations T, U and X; Investment Company Act..............................................56
         4.15    Disclosure..................................................................................57
         4.16    Tax Liability...............................................................................57
         4.17    Hazardous Materials.........................................................................57
         4.18    Initial Pool Properties.....................................................................57
         4.19    Property....................................................................................57
         4.20    Brokers.....................................................................................58
         4.21    Other Debt..................................................................................58
         4.22    Solvency....................................................................................58
         4.23    No Fraudulent Intent........................................................................59
         4.24    Transaction In Best Interests of Borrowers; Consideration...................................59
         4.25    No Bankruptcy Filing........................................................................59
         4.26    Year 2000 Compliance........................................................................59

Article 5
         AFFIRMATIVE COVENANTS(OTHER THAN INFORMATION ANDREPORTING REQUIREMENTS).............................59
         5.1     Payment of Taxes and Other Potential Liens..................................................60
         5.2     Preservation of Existence...................................................................60
         5.3     Maintenance of Properties...................................................................60
         5.4     Maintenance of Insurance....................................................................60
         5.5     Compliance With Laws........................................................................60

                                       ii
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         5.6     Inspection Rights...........................................................................60
         5.7     Keeping of Records and Books of Account.....................................................61
         5.8     Compliance With Agreements..................................................................61
         5.9     Use of Proceeds.............................................................................61
         5.10    Hazardous Materials Laws....................................................................61
         5.11    Unencumbered Asset Pool.....................................................................61
         5.12    Reit Status.................................................................................61
         5.13    Additional Borrowers........................................................................62
         5.14    Inspection of Properties and Books..........................................................62
         5.15    More Restrictive Agreements.................................................................62
         5.16    Distributions of Income to The Borrowers....................................................62
         5.17    Unencumbered Asset Pool.....................................................................63

Article 6
         NEGATIVE COVENANTS..................................................................................64
         6.1     Mergers.....................................................................................64
         6.2     ERISA.......................................................................................64
         6.3     Change In Nature of Business................................................................64
         6.4     Transactions With Affiliates................................................................64
         6.5     Leverage Ratio..............................................................................64
         6.6     Debt Service Coverage.......................................................................65
         6.7     Fixed Charge Coverage.......................................................................65
         6.8     Distributions...............................................................................65
         6.9     Stockholders' Equity........................................................................65
         6.10    Development Investments.....................................................................65
         6.11    Secured Debt................................................................................65
         6.12    Recourse Debt...............................................................................66
         6.13    Investments In Certain Persons..............................................................66
         6.14    Negative Pledges............................................................................66
         6.15    [Intentionally Omitted].....................................................................66
         6.16    Limiting Agreements.........................................................................66
         6.17    Restriction On Prepayment of Indebtedness...................................................66
         6.18    Restrictions On Transfer....................................................................66

Article 7
         INFORMATION AND REPORTING REQUIREMENTS..............................................................67
         7.1     Financial and Business Information..........................................................67
         7.2     Compliance Certificates.....................................................................71

Article 8
         CONDITIONS..........................................................................................71
         8.1     Initial Advances............................................................................71
         8.2     Any Advance.................................................................................73

                                       iii
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Article 9
         EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT................................................74
         9.1     Events of Default...........................................................................74
         9.2     Remedies Upon Event of Default..............................................................76

Article 10
         THE MANAGING AGENT..................................................................................78
         10.1    Appointment and Authorization...............................................................78
         10.2    Managing Agent and Affiliates...............................................................79
         10.3    Proportionate Interest In Any Collateral....................................................79
         10.4    Banks' Credit Decisions.....................................................................79
         10.5    Action By Managing Agent....................................................................80
         10.6    Liability of Managing Agent.................................................................80
         10.7    Indemnification.............................................................................82
         10.8    Successor Managing Agent....................................................................82
         10.9    No Obligations of Borrowers.................................................................83

Article 11
         MISCELLANEOUS.......................................................................................83
         11.1    Cumulative Remedies; No Waiver..............................................................83
         11.2    [Intentionally Omitted].....................................................................83
         11.3    Costs, Expenses and Taxes...................................................................83
         11.4    Nature of Banks' Obligations................................................................84
         11.5    Survival of Representations and Warranties..................................................85
         11.6    Notices.....................................................................................85
         11.7    Execution of Loan Documents.................................................................85
         11.8    Binding Effect; Assignment..................................................................85
         11.9    Right of Setoff.............................................................................88
         11.10   Sharing of Setoffs..........................................................................88
         11.11   Indemnity By Borrowers......................................................................89
         11.12   Nonliability of The Banks...................................................................90
         11.13   No Third Parties Benefitted.................................................................91
         11.14   Confidentiality.............................................................................91
         11.15   Further Assurances..........................................................................91
         11.16   Integration.................................................................................91
         11.17   Governing Law...............................................................................92
         11.18   Severability of Provisions..................................................................92
         11.19   Headings....................................................................................92
         11.20   Time of The Essence.........................................................................92
         11.21   Foreign Banks and Participants..............................................................92
         11.22   Hazardous Material Indemnity................................................................93
         11.23   Joint and Several...........................................................................94
         11.24   Removal of a Bank...........................................................................94
         11.25   Waiver of Right to Trial By Jury............................................................94

                                       iv
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         11.26   Purported Oral Amendments...................................................................94
         11.27   Replacement of Notes........................................................................95

Article 12
         AMENDMENTS; CONSENTS................................................................................95
         12.1    Amendments; Consents........................................................................95
</TABLE>

EXHIBITS

A       -      Commitments Assignment and Acceptance
B       -      Competitive Advance Note
C       -      Competitive Bid
D       -      Competitive Bid Request
E       -      Compliance Certificate
F       -      Joinder Agreement
G       -      Line Note
H       -      Reserved
I-1     -      Opinion of Counsel
I-2     -      Opinion of Counsel
J       -      Pricing Certificate
K       -      Request for Loan
L       -      Joint Borrower Provisions
M       -      Swing Loan Note
N       -      Letter of Credit Request

SCHEDULES

1.1            Bank Commitments
1.2            Test Debt Service Coverage Amount Calculation
4.4            Subsidiaries
4.7            Existing Liens, Negative Pledges and Rights of Others
4.10           Material Litigation
4.17           Hazardous Materials Matters
4.18           Initial Pool Properties
4.19           Real Property
4.21           Indebtedness

                                       v

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                           SECOND AMENDED AND RESTATED
                            REVOLVING LOAN AGREEMENT

                          Dated as of February 11, 2000

                  This SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT
("Agreement") is entered into by and among Alexandria Real Estate Equities,
Inc., a Maryland corporation ("Parent"), Alexandria Real Estate Equities, L.P.,
a Delaware limited partnership ("Operating Partnership"), ARE-QRS Corp., a
Maryland corporation ("QRS"), ARE Acquisitions, LLC, a Delaware limited
liability company ("ARE"), the other borrowers whose names are set forth on the
signature pages of this Agreement, each other Wholly-Owned Subsidiary of Parent
which may hereafter become a party to this Agreement as a borrower pursuant to
Section 5.13 (collectively, with Parent, Operating Partnership, QRS and ARE, the
"Borrowers", all on a joint and several basis); each bank whose name is set
forth on the signature pages of this Agreement and each lender which may
hereafter become a party to this Agreement pursuant to Section 11.8
(collectively, the "Banks" and individually, a "Bank"); BankBoston, N.A., as
Managing Agent; The Chase Manhattan Bank, as Syndication Agent; First Union
National Bank, as Documentation Agent; Societe Generale Southwest Agency,
KeyBank National Association and Dresdner Bank AG, New York and Grand Cayman
Branches, as Co-Agents; and BancBoston Robertson Stephens, Inc. and Chase
Securities, Inc., as Co-Arrangers.

                                    RECITALS

         WHEREAS, Parent, QRS, ARE, Bank of America National Trust and Savings
Association, individually and as managing agent, and certain other banks entered
into that certain Revolving Loan Agreement dated as of June 2, 1997 (the
"Original Credit Agreement"); and

         WHEREAS, Bank of America National Trust and Savings Association has
assigned its position as managing agent to the Managing Agent; and

         WHEREAS, the Borrowers, Managing Agent and certain other banks entered
into that certain First Amended and Restated Revolving Loan Agreement dated as
of August 4, 1998, which amended and restated the Original Credit Agreement in
its entirety (the "First Amended Credit Agreement"); and

         WHEREAS, the Borrowers, Managing Agent and the other banks a party to
the First Amended Credit Agreement entered into that certain First Amendment to
First Amended and Restated Revolving Loan Agreement dated as of October 21, 1998
(the "First Amendment"); and

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         WHEREAS, Borrowers have requested that the Banks amend certain
provisions of the First Amended Credit Agreement, as amended by the First
Amendment; and

         WHEREAS, Managing Agent, Borrowers and the Banks desire to amend and
restate the First Amended Credit Agreement , as amended by the First Amendment,
in its entirety;

         NOW, THEREFORE, in consideration of the recitals herein and the mutual
covenants contained herein, the parties hereto hereby amend and restate the
First Amended Credit Agreement , as amended by the First Amendment, in its
entirety as follows:

                                    Article 1
                        DEFINITIONS AND ACCOUNTING TERMS

                  1.1 DEFINED TERMS. As used in this Agreement, the following
terms shall have the meanings set forth below:

                  "ABSOLUTE RATE BID" means the bid defined in Section 2.4(b).

                  "ADJUSTED EBITDA" means with respect to any fiscal period, an
         amount equal to the sum of (a) EBITDA of Parent and its Subsidiaries
         for such period consolidated in accordance with Generally Accepted
         Accounting Principles MINUS (b) the Capital Improvement Reserve for the
         Real Property of Parent and its Subsidiaries.

                  "ADJUSTED NOI" means, with respect to any Revenue-Producing
         Property and for any fiscal period, (a) NOI of that Revenue-Producing
         Property MINUS (b) the Capital Improvements Reserve for such
         Revenue-Producing Property.

                  "ADJUSTED TANGIBLE ASSETS" means, as of any date of
         determination, without duplication, the SUM OF (a) Total Assets of
         Parent and its Subsidiaries as of that date, MINUS (b) Intangible
         Assets of Parent and its Subsidiaries as of that date MINUS (c) any
         Aminority interest@ held by third parties and included within Total
         Assets as of that date, determined on a consolidated basis in
         accordance with Generally Accepted Accounting Principles.

                  "ADVANCE" means any advance made or to be made by any Bank to
         Borrowers as provided in ARTICLE 2, and INCLUDES each Alternate Base
         Rate Advance and LIBOR Rate Advance.

                  "AFFILIATE" means, as to any Person, any other Person which
         directly or indirectly controls, or is under common control with, or is
         controlled by, such Person. As used in this definition, "control" (and
         the correlative terms, "controlled by" and "under common control with")
         shall mean possession, directly or indirectly, of power to direct or
         cause the direction of management or policies (whether through
         ownership of securities or partnership or other ownership interests, by
         contract or otherwise);

                                       2
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         PROVIDED that, in any event, any Person that owns, directly or
         indirectly, 10% or more of the securities having ordinary voting
         power for the election of directors or other governing body
         of a corporation, or 10% or more of the partnership or other
         ownership interests of any other Person, will be deemed to be an
         Affiliate of such corporation, partnership or other Person.

                  "AGREEMENT" means this Second Amended and Restated Revolving
         Loan Agreement, either as originally executed or as it may from time to
         time be supplemented, modified, amended, restated or extended.

                  "AGREEMENT REGARDING FEES" means the Agreement Regarding Fees
         dated of even date herewith among the Borrowers and Managing Agent.

                  "ALTERNATE BASE RATE" means, as of any date of determination,
         the rate per annum equal to the HIGHER OF (a) the Reference Rate in
         effect on such date and (b) the Federal Funds Rate in effect on such
         date plus 1/2 of 1% (50 basis points) (rounded upwards, if necessary,
         to the next 1/100 of 1%).

                  "ALTERNATE BASE RATE ADVANCE" means an Advance made hereunder
         and specified to be an Alternate Base Rate Advance in accordance with
         ARTICLE 2.

                  "ALTERNATE BASE RATE LOAN" means a Loan made hereunder and
         specified to be an Alternate Base Rate Loan in accordance with ARTICLE
         2.

                  "APPLICABLE ALTERNATE BASE RATE MARGIN" means, for each
         Pricing Period, the interest rate margin set forth below (expressed in
         basis points per annum) opposite the Applicable Pricing Level for that
         Pricing Period:

                         APPLICABLE
                       PRICING LEVEL                      MARGIN
                       -------------                      ------
                               I                              0
                               II                             0
                               III                            0
                               IV                             0
                               V                             25
                               VI                            25

                  "APPLICABLE LIBOR RATE MARGIN" means, for each Pricing Period,
         the interest rate margin set forth below (expressed in basis points per
         annum) opposite the Applicable Pricing Level for that Pricing Period:

                                       3
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                                     APPLICABLE
                                    PRICING LEVEL                      MARGIN
                                    -------------                      ------
                                            I                          100.00
                                            II                         120.00
                                            III                        130.00
                                            IV                         150.00
                                            V                          162.50
                                            VI                         187.50

                  "APPLICABLE PRICING LEVEL" means (a) for any Pricing Period
         during which Parent holds a Credit Rating of BBB+/Baa1 (or its
         equivalent) or better, Pricing Level I, (b) for any Pricing Period
         during which Parent holds a Credit Rating of BBB/Baa2 (or its
         equivalent), Pricing Level II, (c) for any Pricing Period during which
         Parent holds a Credit Rating of BBB-/Baa3 (or its equivalent), Pricing
         Level III and (d) for any Pricing Period during which Parent does not
         hold a Credit Rating of BBB-/Baa3 (or its equivalent) or better, the
         pricing level set forth below opposite the Leverage Ratio as of the
         last day of the Fiscal Quarter most recently ended prior to the
         commencement of that Pricing Period:

            PRICING LEVEL               LEVERAGE RATIO
            -------------               --------------
                     IV                 Less than .35 to 1.00
                     V                  Equal to or greater than .35 to 1.00
                                               but less than .50 to 1.00
                     VI                 Equal to or greater than .50 to 1.00
                                               but less than or equal to .55 to
                                               1.00;

         PROVIDED that (a) the Applicable Pricing Level for the initial Pricing
         Period shall (UNLESS Pricing Level I, Pricing Level II or Pricing Level
         III is then in effect) be PRICING LEVEL V, (b) in the event that
         Borrowers do not deliver a Pricing Certificate with respect to any
         Pricing Period prior to the commencement of such Pricing Period, then
         until (but only until) such Pricing Certificate is delivered the
         Applicable Pricing Level for that Pricing Period shall be Pricing Level
         VI and (c) if any Pricing Certificate is subsequently determined to be
         in error, then the resulting change in the Applicable Pricing Level
         shall be made retroactively to the beginning of the relevant Pricing
         Period.

                  "ASSET VALUE" means, as of any date of determination and with
         respect to any improved Real Property owned by a Person that is not
         under development for the purposes of Section 6.10, an amount equal to
         (a) the Adjusted NOI of such Person from such Real Property for the
         period covered by the previous four full consecutive Fiscal Quarters
         divided by (b) the Capitalization Rate. Prior to such time as a
         Borrower or any of its Subsidiaries has owned and operated any Real
         Property for four full Fiscal Quarters, the Adjusted NOI with respect
         to such Real Property for the

                                       4
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         number of full Fiscal Quarters which the Borrower or any of its
         Subsidiaries has owned and operated such parcel of Real Property
         shall be adjusted by the applicable Borrower to an annual Adjusted
         NOI in a manner reasonably acceptable to the Managing Agent.

                  "BANK" means each bank whose name is set forth in the
         signature pages of this Agreement and each lender which may hereafter
         become a party to this Agreement pursuant to Section 11.8.

                  "BANKBOSTON" means BankBoston, N.A., a national banking
         association.

                  "BANKING DAY" means any Monday, Tuesday, Wednesday, Thursday
         or Friday, OTHER THAN a day on which banks are authorized or required
         to be closed in Massachusetts, New York or California.

                  "BORROWING BASE" means, as of any date of determination, the
         LESSER OF (a) the maximum amount which, when added to the total
         outstanding balance of all unsecured Indebtedness of Parent and its
         Subsidiaries (including the Loans), would not exceed fifty-five percent
         (55%) of the aggregate Asset Value of the Unencumbered Asset Pool as of
         such date, and (b) the maximum amount which, when added to the total
         outstanding balance of all unsecured Indebtedness of Parent and its
         Subsidiaries (including the Loans), would not cause the "Test Debt
         Service Coverage Amount" (as hereinafter defined) for the Unencumbered
         Asset Pool to be less than two (2). "TEST DEBT SERVICE COVERAGE AMOUNT"
         means at any time determined under this Agreement, an amount obtained
         by dividing (a) the sum of the aggregate Adjusted NOI from the
         Unencumbered Asset Pool for the preceding four (4) full Fiscal
         Quarters, by (b) the annual amount of principal and interest that would
         be payable on the total outstanding balance of all unsecured
         Indebtedness of the Parent and its Subsidiaries (including the Loans
         and any requested Loans) when bearing interest at a rate per annum
         equal to the then-current annual yield on ten (10) year obligations
         issued by the United States Treasury most recently prior to the date of
         determination plus two percent (2.0%) and payable based on a
         twenty-five year mortgage style amortization schedule (expressed as a
         mortgage constant percentage). The Test Debt Service Coverage Amount
         shall be determined by the Borrowers and shall be satisfactory to the
         Managing Agent, provided that in the event that, as of any date under
         this Agreement, the Test Debt Service Coverage Amount is required to be
         determined hereunder and such determination shall have not been made as
         provided above, then such amount shall be determined by the Managing
         Agent. An example of the calculation of the Test Debt Service Coverage
         Amount is set forth in SCHEDULE 1.2 attached hereto. In the event that
         a Borrower shall have owned a property within the Unencumbered Asset
         Pool for less than four (4) full consecutive Fiscal Quarters, then for
         the purposes of performing such calculation, the Adjusted NOI with
         respect to such property shall be annualized by the applicable Borrower
         in a manner reasonably acceptable to the Managing Agent.

                                       5
<PAGE>

                  "BORROWERS" means, collectively, (a) Parent, (b) Operating
         Partnership, (c) QRS, (d) ARE, (e) the other borrowers whose names are
         set forth on the signature pages of this Agreement and (f) any other
         Wholly-Owned Subsidiary of Parent that hereafter executes a Joinder
         Agreement pursuant to SECTION 5.13. Borrowers are jointly and severally
         obligated with respect to the Obligations.

                  "CAPITAL IMPROVEMENT RESERVE" means with respect to any Real
         Property now or hereafter owned by the Borrowers or their Subsidiaries,
         an annual capital replacement reserve in the amount of thirty cents
         ($.30) multiplied by the Net Rentable Area contained therein.

                  "CAPITAL LEASE OBLIGATIONS" means all monetary obligations of
         a Person under any leasing or similar arrangement which, in accordance
         with Generally Accepted Accounting Principles, is classified as a
         capital lease.

                  "CAPITALIZATION RATE" means initially ten percent (10%), as
         such rate may be changed from time to time as provided in this
         definition. The Borrowers may request that the Banks modify the
         prevailing Capitalization Rate based upon information provided to the
         Borrowers and the Banks by an independent expert mutually acceptable to
         Parent and the Managing Agent concerning the prevailing capitalization
         rate used by sophisticated real estate industry professionals to value
         properties comparable to those in the Unencumbered Asset Pool for
         comparable purposes, provided that any change to the Capitalization
         Rate shall be subject to the prior written approval of the Requisite
         Banks.

                  "CASH" means, when used in connection with any Person, all
         monetary and non-monetary items owned by that Person that are treated
         as cash in accordance with Generally Accepted Accounting Principles,
         consistently applied.

                  "CASH INTEREST EXPENSE" means Interest Expense that is paid or
         currently payable in Cash.

                  "CERTIFICATE" means a certificate signed by a Senior Officer
         or Responsible Official (as applicable) of the Person providing the
         certificate.

                  "CHANGE IN CONTROL" means (a) any transaction or series of
         related transactions in which any Unrelated Person or two or more
         Unrelated Persons acting in concert acquire beneficial ownership
         (within the meaning of Rule 13d-3(a)(1) under the Securities Exchange
         Act of 1934, as amended), directly or indirectly, of 40% or more of the
         outstanding Common Stock, (b) Parent consolidates with or merges into
         another Person or conveys, transfers or leases its properties and
         assets substantially as an entirety to any Person or any Person
         consolidates with or merges into Parent, in either event pursuant to a
         transaction in which the outstanding Common Stock is changed into or
         exchanged for cash, securities or other property, with the effect that
         any

                                       6
<PAGE>

         Unrelated Person becomes the beneficial owner, directly or
         indirectly, of 40% or more of Common Stock or that the Persons who were
         the holders of Common Stock immediately prior to the transaction hold
         less than 60% of the common stock of the surviving corporation after
         the transaction, (c) during any period of 24 consecutive months,
         individuals who at the beginning of such period constituted the board
         of directors of Parent (together with any new or replacement directors
         whose election by the board of directors, or whose nomination for
         election, was approved by a vote of at least a majority of the
         directors then still in office who were either directors at the
         beginning of such period or whose election or nomination for reelection
         was previously so approved) cease for any reason to constitute a
         majority of the directors then in office, or (d) a "change in control"
         as defined in any document governing Indebtedness of Parent in excess
         of $25,000,000 which gives the holders of such Indebtedness the right
         to accelerate or otherwise require payment of such Indebtedness prior
         to the maturity date thereof. For purposes of the foregoing, the term
         "UNRELATED PERSON" means any Person OTHER THAN (i) a Subsidiary of
         Parent, (ii) an employee stock ownership plan or other employee benefit
         plan covering the employees of Parent and its Subsidiaries or (iii) any
         Person that held Common Stock on the day prior to the effective date of
         Parent's registration statement under the Securities Act of 1933
         covering the initial public offering of Common Stock.

                  "CLOSING DATE" means the time and Banking Day on which the
         conditions set forth in Section 8.1 are satisfied or waived. The
         Managing Agent shall notify Borrowers and the Banks of the date that is
         the Closing Date.

                  "CODE" means the Internal Revenue Code of 1986, as amended or
         replaced and as in effect from time to time.

                  "COMMITMENTS" means the Line Commitment.

                  "COMMITMENTS ASSIGNMENT AND ACCEPTANCE" means a commitment
         assignment and acceptance substantially in the form of EXHIBIT A.

                  "COMMITTED ADVANCE" means an Advance made to Borrowers by any
         Bank in accordance with its Pro Rata Share of the Commitments pursuant
         to Section 2.1.

                  "COMMITTED LOANS" means Loans that are comprised of Committed
         Advances.

                  "COMMON STOCK" means the common stock of Parent or its
         successor.

                  "COMPETITIVE ADVANCE" means an Advance made to Borrowers by
         any Bank not determined by that Bank's Pro Rata Share of the
         Commitments pursuant to Section 2.4.

                                       7
<PAGE>

                  "COMPETITIVE ADVANCE NOTE" means the promissory note made by
         Borrowers in favor of a Bank to evidence the Competitive Advances made
         by that Bank, substantially in the form of EXHIBIT B, either as
         originally executed or as the same may from time to time be
         supplemented, modified, amended, renewed, extended or supplanted.

                  "COMPETITIVE BID" means a written bid to provide a Competitive
         Advance substantially in the form of EXHIBIT C, signed by a Responsible
         Official of a Bank and properly completed to provide all information
         required to be included therein.

                  "COMPETITIVE BID REQUEST" means a written request submitted by
         Borrowers to the Managing Agent to provide a Competitive Bid,
         substantially in the form of EXHIBIT D, signed by a Responsible
         Official of Borrowers and properly completed to provide all information
         required to be included therein.

                  "COMPLIANCE CERTIFICATE" means a certificate in the form of
         EXHIBIT E, properly completed and signed by a Senior Officer of
         Borrowers.

                  "CONTRACTUAL OBLIGATION" means, as to any Person, any
         provision of any outstanding security issued by that Person or of any
         material agreement, instrument or undertaking to which that Person is a
         party or by which it or any of its Property is bound.

                  "CONTROLLED ENTITY" means a Person (a) that is a Subsidiary of
         Parent, (b) that is a general partnership or a limited partnership in
         which a Wholly-Owned Subsidiary is the sole managing general partner
         and such managing general partner has the sole power to (i) sell all or
         substantially all of the assets of such Person, (ii) incur Indebtedness
         in the name of such Person, (iii) grant a Lien on all or any portion of
         the assets of such Person and (iv) otherwise generally manage the
         business and assets of such Person or (c) that is a limited liability
         company for which a Wholly-Owned Subsidiary is the sole manager and
         such manager has the sole power to do the acts described in subclauses
         (i) through (iv) of clause (b) above.

                  "CREDIT RATING" means, as of any date of determination, the
         higher of the credit ratings (or their equivalents) then assigned to
         Parent's long-term senior unsecured debt by either of the Rating
         Agencies; PROVIDED that any credit rating so assigned by a Rating
         Agency shall be deemed for this purpose to include all lower credit
         ratings of such Rating Agency. For purposes of the foregoing, "RATING
         AGENCIES" means (a) Standard & Poor's Rating Group (a division of
         McGraw Hill, Inc.) ("S&P") and its successors, and (b) Moody's Investor
         Services, Inc. ("Moody's") and its successors. A credit rating of BBB-
         from S&P is equivalent to a credit rating of Baa3 from Moody's and vice
         versa. A credit rating of BBB from S&P is equivalent to a credit rating
         of Baa2 from Moody's and vice versa. It is the intention of the parties
         that if Parent shall only obtain a credit rating from one of the Rating
         Agencies without seeking a credit

                                       8
<PAGE>
         rating from the other of the Rating Agencies, the Borrowers
         shall be entitled to the benefit of the Pricing Level for
         such credit rating. If Parent shall have obtained a credit rating
         from both of the Rating Agencies, the higher of the two ratings
         shall control, provided that the lower rating is only one level below
         that of the higher rating. If the lower rating is more than one level
         below that of the higher credit rating, the lower credit rating shall
         control. In the event that Parent shall have obtained a credit rating
         from both of the Rating Agencies and shall thereafter lose such rating
         from one of the Rating Agencies, the Parent shall be deemed for the
         purposes hereof not to have a credit rating. If at any time either of
         the Rating Agencies shall no longer perform the functions of a
         securities rating agency, then the Borrowers and the Managing Agent
         shall promptly negotiate in good faith to agree upon a substitute
         rating agency or agencies (and to correlate the system of ratings of
         each substitute rating agency with that of the rating agency being
         replaced), and pending such amendment, the Credit Rating of the other
         of the Rating Agencies, if one has been provided, shall continue to
         apply.

                  "DEBT OFFERING" means the issuance and sale by any Borrower of
         any debt securities of such Borrower.

                  "DEBT SERVICE" means for any period, the sum of all Interest
         Charges and mandatory or regularly scheduled principal payments due and
         payable during such period excluding any balloon payments due upon
         maturity of any indebtedness. Debt Service shall include the portion of
         rent payable by a Person during such period under Capital Lease
         Obligations that should be treated as principal in accordance with
         Generally Accepted Accounting Principles.

                  "DEBT SERVICE COVERAGE" means, as of the last day of each
         Fiscal Quarter, the RATIO OF (a) Adjusted EBITDA for the fiscal period
         consisting of that Fiscal Quarter and the three immediately preceding
         Fiscal Quarters TO (b) Debt Service of the Parent and its Subsidiaries
         for that fiscal period.

                  "DEBTOR RELIEF LAWS" means the Bankruptcy Code of the United
         States of America, as amended from time to time, and all other
         applicable liquidation, conservatorship, bankruptcy, moratorium,
         rearrangement, receivership, insolvency, reorganization, or similar
         debtor relief Laws from time to time in effect affecting the rights of
         creditors generally.

                  "DEFAULT" means any event that, with the giving of any
         applicable notice or passage of time specified in Section 9.1, or both,
         would be an Event of Default.

                  "DEFAULT RATE" means the interest rate prescribed in Section
         3.9.

                                       9
<PAGE>

                  "DESIGNATED DEPOSIT ACCOUNT" means a deposit account to be
         maintained by Borrowers with BankBoston or one of its Affiliates, as
         from time to time designated by Borrowers by written notification to
         the Managing Agent.

                  "DEVELOPMENT INVESTMENTS" shall have the meaning contained in
         Section 6.10.

                  "DISQUALIFIED STOCK" means any capital stock, warrants,
         options or other rights to acquire capital stock (but excluding any
         debt security which is convertible, or exchangeable, for capital
         stock), which, by its terms (or by the terms of any security into which
         it is convertible or for which it is exchangeable), or upon the
         happening of any event, matures or is mandatorily redeemable, pursuant
         to a sinking fund obligation or otherwise, or is redeemable at the
         option of the holder thereof, in whole or in part, on or prior to the
         Maturity Date.

                  "DISTRIBUTION" means, with respect to any shares of capital
         stock or any warrant or option to purchase an equity security or other
         equity security or interest issued by a Person, (i) the retirement,
         redemption, purchase or other acquisition for Cash or for Property by
         such Person of any such security or interest, (ii) the declaration or
         (without duplication) payment by such Person of any dividend in Cash or
         in Property on or with respect to any such security or interest, (iii)
         any Investment by such Person in the holder of 5% or more of any such
         security or interest if a purpose of such Investment is to avoid
         characterization of the transaction as a Distribution and (iv) any
         other payment in Cash or Property by such Person constituting a
         distribution under applicable Laws with respect to such security or
         interest.

                  "DOLLARS" or "$" means United States dollars.

                  "DOMESTIC REFERENCE BANK" means BankBoston or such other Bank
         as may be appointed by the Managing Agent with the approval of Parent
         (which shall not be unreasonably withheld).

                  "EBITDA" means, with respect to any Person (or any asset of a
         Person) for any fiscal period, the SUM OF (a) the Net Income of such
         Person (or attributable to such asset) for that period, PLUS (b) any
         non-operating non-recurring loss reflected in such Net Income, MINUS
         (c) any non-operating non-recurring gain reflected in such Net Income,
         PLUS (d) Interest Expense of such Person for that period, PLUS (e) the
         aggregate amount of federal and state taxes on or measured by income of
         such Person for that period (whether or not payable during that
         period), PLUS (f) depreciation, amortization and all other non-cash
         expenses (INCLUDING non-cash officer compensation) of such Person for
         that period, in each case as determined in accordance with Generally
         Accepted Accounting Principles.

                  "ELIGIBLE ASSIGNEE" means (a) another Bank, (b) with respect
         to any Bank, any Affiliate of that Bank, (c) any commercial bank having
         a combined capital and surplus

                                     -10-
<PAGE>

         of $100,000,000 or more, (d) any (i) savings bank, savings and loan
         association or similar financial institution or (ii) insurance
         company engaged in the business of writing insurance which, in
         either case (A) has a net worth of $200,000,000 or more, (B) is
         engaged in the business of lending money and extending credit under
         credit facilities substantially similar to those extended under this
         Agreement and (C) is operationally and procedurally able to meet the
         obligations of a Bank hereunder to the same degree as a commercial
         bank and (e) any other financial institution (INCLUDING a mutual
         fund or other fund) having total assets of $250,000,000 or more
         which meets the requirements set forth in subclauses (B) and (C) of
         clause (d) above; PROVIDED that each Eligible Assignee must either
         (a) be organized under the Laws of the United States of America, any
         State thereof or the District of Columbia or (b) be organized under
         the Laws of the Cayman Islands or any country which is a member of
         the Organization for Economic Cooperation and Development, or a
         political subdivision of such a country, and (i) act hereunder
         through a branch, agency or funding office located in the United
         States of America and (ii) be exempt from withholding of tax on
         interest and deliver the documents related thereto pursuant to
         Section 11.21.

                  "EMPLOYEE PLAN" means any (a) employee benefit plan (as
         defined in Section 3(3) of ERISA) that is subject to Title I of ERISA,
         (b) any plan (as defined in Section 4975(e)(1) of the Code) that is
         subject to Section 4975 of the Code, (c) any entity the underlying
         assets of which include plan assets (as defined in 29 C.F.R. Section
         2510.3-101 or otherwise under ERISA) by reason of a plan's investment
         in such entity (INCLUDING an insurance company general account), or (d)
         a governmental plan (as defined in Section 3(32) of ERISA or Section
         414(d) of the Code) organized in a jurisdiction within the United
         States of America having prohibitions on transactions with such
         governmental plan substantially similar to those contained in Section
         406 of ERISA or Section 4975 of the Code.

                  "EQUITY OFFERING" means the issuance and sale by any Borrower
         of any equity securities of such Borrower.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, and any regulations issued pursuant thereto, as amended or
         replaced and as in effect from time to time.

                  "ERISA AFFILIATE" means each Person (whether or not
         incorporated) which is required to be aggregated with Parent pursuant
         to Section 414 of the Code.

                  "EVENT OF DEFAULT" shall have the meaning provided in Section
         9.1.

                  "FEDERAL FUNDS RATE" means, as of any date of determination,
         the rate per annum equal to the weighted average of the rates on
         overnight Federal funds transactions with members of the Federal
         Reserve System arranged by Federal funds

                                     -11-
<PAGE>

         brokers, as published for such day (or, if such day is not a Banking
         Day, for the next preceding Banking Day) by the Federal Reserve Bank
         of New York, or, if such rate is not so published for any day that
         is a Banking Day, the average of the quotations for such day on such
         transactions received by the Managing Agent from three (3) Federal
         funds brokers of recognized standing selected by the Managing Agent.
         For purposes of this Agreement, any change in the Alternate Base
         Rate due to a change in the Federal Funds Rate shall be effective as
         of the opening of business on the effective date of such change.

                  "FISCAL QUARTER" means the fiscal quarter of Borrowers ending
         on each March 31, June 30, September 30 and December 31.

                  "FISCAL YEAR" means the fiscal year of Borrowers ending on
         each December 31.

                  "FIXED CHARGE COVERAGE" means, as of the last day of each
         Fiscal Quarter, the RATIO of (a) Adjusted EBITDA for the fiscal period
         consisting of that Fiscal Quarter and the three immediately preceding
         Fiscal Quarters TO (b) the SUM of (i) Debt Service of the Parent and
         its Subsidiaries for such fiscal period PLUS (ii) all Preferred
         Distributions of Parent and its Subsidiaries made during such fiscal
         period.

                  "FIXED RATE LOAN" means any Competitive Advance bearing
         interest on the basis of a fixed rate specified by the Bank making such
         Competitive Advance in response to a request for an Absolute Rate Bid.

                  "FUNDS AVAILABLE FOR DISTRIBUTION" means with respect to any
         fiscal period, an amount equal to Funds From Operations, MINUS Net
         Capital Expenditures of Parent and its Subsidiaries incurred during
         such fiscal period.

                  "FUNDS FROM OPERATIONS" means, with respect to any fiscal
         period, (a) the Net Income of Parent for that period, PLUS (b) any loss
         resulting from the restructuring of Indebtedness, sale of Property or
         other non-operating non-recurring cause during that period, MINUS (c)
         any gain resulting from the restructuring of Indebtedness, sale of
         Property or other non-operating non-recurring cause during that period,
         PLUS (d) depreciation and amortization of Revenue-Producing Properties
         (including with respect to trade fixtures and tenant improvements which
         are a part thereof and capitalized leasing expenses, such as leasing
         commissions and tenant improvement allowances), and ADJUSTED to take
         into account (i) the results of operations of any unconsolidated
         Related Ventures calculated on the same basis and (ii) any unusual and
         non-recurring expense which otherwise would materially distort a
         comparative evaluation of Funds From Operation for different fiscal
         periods.

                  "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" means, as of any
         date of determination, accounting principles (a) set forth as generally
         accepted in then currently effective Opinions of the Accounting
         Principles Board of the American

                                     -12-
<PAGE>

         Institute of Certified Public Accountants, (b) set forth as
         generally accepted in then currently effective Statements of the
         Financial Accounting Standards Board or (c) that are then approved
         by such other entity as may be approved by a significant segment of
         the accounting profession in the United States of America. The term
         "CONSISTENTLY APPLIED," as used in connection therewith, means that
         the accounting principles applied are consistent in all material
         respects with those applied at prior dates or for prior periods.

                  "GOVERNMENTAL AGENCY" means (a) any international, foreign,
         federal, state, county or municipal government, or political
         subdivision thereof, (b) any governmental or quasi-governmental agency,
         authority, board, bureau, commission, department, instrumentality or
         public body or (c) any court or administrative tribunal of competent
         jurisdiction.

                  "GUARANTY OBLIGATION" means, as to any Person, any (a)
         guarantee by that Person of Indebtedness of, or other obligation
         performable by, any other Person or (b) assurance given by that Person
         to an obligee of any other Person with respect to the performance of an
         obligation by, or the financial condition of, such other Person,
         whether direct, indirect or contingent, INCLUDING any purchase or
         repurchase agreement covering such obligation or any collateral
         security therefor, any agreement to provide funds (by means of loans,
         capital contributions or otherwise) to such other Person, any agreement
         to support the solvency or level of any balance sheet item of such
         other Person or any "keep-well" or other arrangement of whatever nature
         given for the purpose of assuring or holding harmless such obligee
         against loss with respect to any obligation of such other Person;
         PROVIDED, HOWEVER, that the term Guaranty Obligation shall not include
         endorsements of instruments for deposit or collection in the ordinary
         course of business. The amount of any Guaranty Obligation in respect of
         Indebtedness shall be deemed to be an amount equal to the stated or
         determinable amount of the related Indebtedness (unless the Guaranty
         Obligation is limited by its terms to a lesser amount, in which case to
         the extent of such amount) or, if not stated or determinable, the
         reasonably anticipated liability in respect thereof as determined by
         the Person in good faith pursuant to Generally Accepted Accounting
         Principles.

                  "HAZARDOUS MATERIALS" means substances defined as
         "hazardous substances" pursuant to the Comprehensive Environmental
         Response, Compensation and Liability Act of 1980, 42 U.S.C. Section
         9601 et seq., or as "hazardous", "toxic" or "pollutant" substances
         or as "solid waste" pursuant to the Hazardous Materials
         Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource
         Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or
         as "friable asbestos" pursuant to the Toxic Substances Control Act,
         15 U.S.C. Section 2601 et seq. or any other applicable Hazardous
         Materials Law, in each case as such Laws are amended from time to
         time.

                                     -13-
<PAGE>

                  "HAZARDOUS MATERIALS LAWS" means all Laws governing the
         treatment, transportation or disposal of Hazardous Materials applicable
         to any of the Real Property.

                  "INDEBTEDNESS" means, as to any Person (without duplication),
         (a) indebtedness of such Person for borrowed money or for the deferred
         purchase price of Property (EXCLUDING trade and other accounts payable
         in the ordinary course of business in accordance with ordinary trade
         terms), INCLUDING any Guaranty Obligation, (b) indebtedness of such
         Person of the nature described in clause (A) that is non-recourse to
         the credit of such Person but is secured by assets of such Person, to
         the extent of the fair market value of such assets as determined in
         good faith by such Person, (c) Capital Lease Obligations of such
         Person, (d) indebtedness of such Person arising under bankers'
         acceptance facilities or under facilities for the discount of accounts
         receivable of such Person, (e) the undrawn face amount of any letters
         of credit issued for the account of such Person, (f) any net
         obligations of such Person under Swap Agreements, (g) all liabilities
         secured by any mortgage, pledge, security interest, lien, charge or
         other encumbrance existing on property owned or acquired subject
         thereto, whether or not the liability secured thereby shall have been
         assumed, and (h) without duplication, a Person's pro rata share of any
         of the above-described obligations of its unconsolidated Affiliates.
         Indebtedness shall include all obligations, contingent and otherwise,
         that in accordance with Generally Accepted Accounting Principles should
         be classified upon the obligor's balance sheet as liabilities,
         including all of the foregoing whether or not so classified.

                  "INITIAL POOL PROPERTIES" means the Revenue-Producing
         Properties described in SCHEDULE 4.18.

                  "INTANGIBLE ASSETS" means assets that are considered
         intangible assets under Generally Accepted Accounting Principles,
         INCLUDING customer lists, goodwill, copyrights, trade names, trademarks
         and patents.

                  "INTEREST CHARGES" means, as of the last day of any fiscal
         period, the SUM OF (a) Cash Interest Expense of a Person PLUS (b) all
         interest currently payable by a Person in Cash incurred during that
         fiscal period which is capitalized under Generally Accepted

                                     -14-
<PAGE>

         Accounting Principles PLUS (c) a Person's Proportional Share of the
         Cash Interest Expense and capitalized interest payable in Cash of
         Related Ventures during that fiscal period.

                  "INTEREST EXPENSE" means, with respect to any Person and as of
         the last day of any fiscal period, the SUM OF (a) all interest, fees,
         charges and related expenses paid or payable (without duplication) for
         that fiscal period by that Person to a lender in connection with
         borrowed money (INCLUDING any obligations for fees, charges and related
         expenses payable to the issuer of any letter of credit) or the deferred
         purchase price of assets that are considered "interest expense" under
         Generally Accepted Accounting Principles PLUS (b) the portion of rent
         paid or payable (without duplication) for that fiscal period by that
         Person under Capital Lease Obligations that should be treated as
         interest in accordance with Financial Accounting Standards Board
         Statement No. 13 MINUS (PLUS) (c) amounts received (paid) under Swap
         Agreements.

                  "INTEREST PERIOD" means, with respect to any LIBOR Rate Loan,
         the related LIBOR Period.

                  "INVESTMENT" means, when used in connection with any Person,
         any investment by or of that Person, whether by means of purchase or
         other acquisition of stock or other securities of any other Person or
         by means of a loan, advance creating a debt, capital contribution,
         guaranty or other debt or equity participation or interest in any other
         Person, INCLUDING any partnership and joint venture interests of such
         Person. The amount of any Investment shall be the amount actually
         invested (MINUS any return of capital with respect to such Investment
         which has actually been received in Cash or has been converted into
         Cash), without adjustment for subsequent increases or decreases in the
         value of such Investment.

                  "JOINDER AGREEMENT" means the joinder agreement with respect
         to this Agreement to be executed and delivered pursuant to Section 5.13
         by any additional Borrower in the form of EXHIBIT F, either as
         originally executed or as it may from time to time be supplemented,
         modified, amended, extended or supplanted.

                  "LAWS" means, collectively, all international, foreign,
         federal, state and local statutes, treaties, rules, regulations,
         ordinances, codes and administrative or judicial precedents.

                  "LETTER OF CREDIT" means a standby letter of credit which is
         payable upon presentation of a sight draft and other documents, as
         originally issued pursuant to this Agreement or as amended, modified,
         extended, renewed or supplemented thereafter.

                  "LETTER OF CREDIT EXPOSURE" means, at any time, the sum of (a)
         the aggregate undrawn amount of all outstanding Letters of Credit at
         such time PLUS (b) the aggregate amount of all unreimbursed drawings
         under Letters of Credit at such time.

                  "LETTER OF CREDIT REQUEST" means the request described in
         Section 2.6.

                  "LEVERAGE RATIO" means, as of the last day of each Fiscal
         Quarter, the RATIO OF (a) Total Liabilities of Parent and its
         Subsidiaries as of that date TO (b) Adjusted Tangible Assets as of that
         date.

                  "LIBOR BANKING DAY" means any Banking Day on which dealings in
         Dollar deposits are conducted by and among banks in the London
         interbank market.

                                     -15-
<PAGE>

                  "LIBOR LENDING OFFICE" means, as to each Bank, its office or
         branch so designated by written notice to Borrowers and the Managing
         Agent as its LIBOR Lending Office. If no LIBOR Lending Office is
         designated by a Bank, its LIBOR Lending Office shall be its office at
         its address for purposes of notices hereunder.

                  "LIBOR MARGIN BID" means the bid defined in Section 2.4(B).

                  "LIBOR OBLIGATIONS" means eurocurrency liabilities, as defined
         in Regulation D or any comparable regulation of any Governmental Agency
         having jurisdiction over any Bank.

                  "LIBOR PERIOD" means, as to each LIBOR Rate Loan, the period
         commencing on the date specified by Borrowers pursuant to Section
         2.1(C) and ending 1, 2, 3 or 6 months (or, with the written consent of
         all of the Banks, any other period) thereafter, as specified by
         Borrowers in the applicable Request for Loan; PROVIDED that:

                           (a) The first day of any LIBOR Period shall be a
                  LIBOR Banking Day;

                           (b) Any LIBOR Period that would otherwise end on a
                  day that is not a LIBOR Banking Day shall be extended to the
                  next succeeding LIBOR Banking Day unless such LIBOR Banking
                  Day falls in another calendar month, in which case such LIBOR
                  Period shall end on the next preceding LIBOR Banking Day; and

                           (c) No LIBOR Period shall extend beyond the Maturity
                  Date.

                  "LIBOR RATE" means, with respect to any LIBOR Rate Loan, the
         interest rate per annum as determined by the LIBOR Reference Bank
         (rounded upward, if necessary, to the next 1/100 of 1%) at which
         deposits in Dollars are offered to prime banks by such banks in the
         London interbank market (based on Dow Jones Markets quotes, page 3750,
         or such other page as containing the same information as presently on
         page 3750, or if such information is not available, in such other
         manner as the LIBOR Reference Bank shall determine) at or about 11:00
         a.m. local time in the London interbank market, two (2) LIBOR Banking
         Days before the first day of the applicable LIBOR Period for delivery
         on the first day of such LIBOR Period in an aggregate amount
         approximately equal to the amount of the Advance with respect to such
         LIBOR Rate Loan and for a period of time comparable to the number of
         days in the applicable LIBOR Period.

                  "LIBOR RATE ADVANCE" means an Advance made hereunder and
         specified to be a LIBOR Rate Advance in accordance with ARTICLE 2.

                                     -16-
<PAGE>

                  "LIBOR RATE LOAN" means a Loan made hereunder and specified to
         be a LIBOR Rate Loan in accordance with ARTICLE 2.

                  "LIBOR REFERENCE BANK" means BankBoston or such other Bank as
         may be appointed by the Managing Agent with the approval of Parent
         (which shall not be unreasonably withheld).

                  "LIEN" means any mortgage, deed of trust, pledge,
         hypothecation, assignment for security, security interest, encumbrance,
         lien or charge of any kind, whether voluntarily incurred or arising by
         operation of Law or otherwise, affecting any Property, INCLUDING any
         conditional sale or other title retention agreement, any lease in the
         nature of a security interest, and/or the filing of any financing
         statement (OTHER THAN a precautionary financing statement with respect
         to a lease that is not in the nature of a security interest) under the
         Uniform Commercial Code or comparable Law of any jurisdiction with
         respect to any Property.

                  "LINE COMMITMENT" means, subject to Sections 2.7,
         $325,000,000. The respective Pro Rata Shares of the Banks with respect
         to the Line Commitment are set forth in SCHEDULE 1.1.

                  "LINE LOAN" means any Loan made under the Line Commitment.

                  "LINE NOTE" means any of the promissory notes made by
         Borrowers to a Bank evidencing Advances under that Bank's Pro Rata
         Share of the Line Commitment, substantially in the form of EXHIBIT G,
         either as originally executed or as the same may from time to time be
         supplemented, modified, amended, renewed, extended or supplanted. By
         delivery of the Line Notes, there shall not be deemed to have occurred,
         and there has not otherwise occurred, any payment, satisfaction or
         novation of the indebtedness evidenced by the "Notes" as defined in the
         First Amended Credit Agreement, which indebtedness is instead allocated
         among the Banks as of the date hereof and evidenced by the Line Notes
         in accordance with their respective Pro Rata Shares.

                  "LOAN" means the aggregate of the Advances made at any one
         time by the Banks pursuant to Section 2.1, Competitive Advances made
         pursuant to Section 2.4 and the Swing Loans made pursuant to Section
         2.5.

                  "LOAN DOCUMENTS" means, collectively, this Agreement, the
         Notes, each Joinder Agreement and any other agreements of any type or
         nature hereafter executed and delivered by Borrowers to the Managing
         Agent or to any Bank in any way relating to or in furtherance of this
         Agreement, in each case either as originally executed or as the same
         may from time to time be supplemented, modified, amended, restated,
         extended or supplanted.

                                     -17-
<PAGE>

                  "MAJORITY BANKS" means (a) as of any date of determination if
         the Commitments are then in effect, Banks having in the aggregate more
         than 50% of the Commitments then in effect and (b) as of any date of
         determination if the Commitments have then been suspended or terminated
         and there is then any Indebtedness evidenced by the Notes, Banks
         holding Notes evidencing in the aggregate more than 50% of the
         aggregate Indebtedness then evidenced by the Notes.

                  "MANAGING AGENT" means BankBoston, when acting in its capacity
         as the Managing Agent under any of the Loan Documents, or any successor
         Managing Agent.

                  "MANAGING AGENT'S OFFICE" means the Managing Agent's address
         at 100 Federal Street, Boston, Massachusetts 02110, or such other
         address as the Managing Agent hereafter may designate by written notice
         to Borrowers and the Banks. With respect to notices to be sent to
         BankBoston as Managing Agent with respect to Requests for Loans, Letter
         of Credit Requests and any other requests, such notices shall be sent
         to the office of Managing Agent located in Atlanta, Georgia as
         specified in this Agreement, or at such other office as Managing Agent
         may designate by written notice to the Banks and the Borrowers.

                  "MARGIN STOCK" means "margin stock" as such term is defined in
         Regulation T, U or X.

                  "MATERIAL ADVERSE EFFECT" means any set of circumstances or
         events which (a) has had or could reasonably be expected to have any
         material adverse effect whatsoever upon the validity or enforceability
         of any Loan Document (OTHER THAN as a result of any action or inaction
         of the Managing Agent or any Bank), (b) has been or could reasonably be
         expected to be material and adverse to the business or condition
         (financial or otherwise) of Borrowers or (c) has materially impaired or
         could reasonably be expected to materially impair the ability of
         Borrowers to perform the Obligations.

                  "MATURITY DATE" means February 11, 2003, or if the Maturity
         Date has then been extended pursuant to Section 2.10, such extended
         Maturity Date.

                  "MAXIMUM COMPETITIVE ADVANCE" means, with respect to any
         Competitive Bid made by a Bank, the amount set forth therein as the
         maximum Competitive Advance which that Bank is willing to make in
         response to the related Competitive Bid Request.

                  "MONTHLY PAYMENT DATE" means the first day of each calendar
         month.

                  "MORTGAGEABLE GROUND LEASE" means any lease (a) which is a
         direct lease granted by the fee owner of real property, (b) which has a
         remaining term (calculated one time only from the later of the Closing
         Date or the date the property subject to such lease becomes part of the
         Qualified Unencumbered Asset Pool) of not less than

                                     -18-
<PAGE>

         thirty (30) years, including extension options which are exercisable
         solely at the discretion of a Borrower, (c) under which no material
         default has occurred and is continuing, and (d) with respect to
         which a security interest may be granted without the consent of the
         lessor.

                  "MULTIEMPLOYER PLAN" means any employee benefit plan of the
         type described in Section 4001(a)(3) of ERISA to which Borrowers or any
         of their ERISA Affiliates contribute or are obligated to contribute.

                  "NEGATIVE PLEDGE" means a Contractual Obligation that contains
         a covenant binding on Borrowers that prohibits Liens on any of their
         Property, OTHER THAN (a) any such covenant contained in a Contractual
         Obligation granting or relating to a particular Lien which affects only
         the Property that is the subject of such Lien and (b) any such covenant
         that does not apply to Liens which may secure the Obligations now or in
         the future.

                  "NET CAPITAL EXPENDITURES" means with respect to any Person
         for any fiscal period, an amount equal to the sum of the amount of
         capital expenditures paid in cash by such Person in order to maintain
         the general condition and operation of its Real Property during such
         fiscal period, excluding any non-recurring capital expenditures made to
         update or enhance building infrastructure or building systems on such
         Real Property, PLUS the amount of leasing costs (including leasing
         commissions and standard tenant improvements) paid in cash by such
         Person with respect to its Real Property during such fiscal period.

                  "NET INCOME" means, with respect to any Person and with
         respect to any fiscal period, the net income of that Person for that
         period, determined in accordance with Generally Accepted Accounting
         Principles, consistently applied.

                  "NON-RECOURSE DEBT" means Indebtedness of Parent or any of its
         Subsidiaries for which the liability of Parent or such Subsidiary
         (EXCEPT with respect to fraud, Hazardous Materials Laws liability and
         other customary exceptions) either is contractually limited to
         collateral securing such Indebtedness or is so limited by operation of
         Law.

                  "NET RENTABLE AREA" means with respect to any Real Property,
         the floor area of any buildings, structures or improvements available
         for leasing to tenants (excluding storage lockers and parking spaces)
         determined in accordance with the Rent Roll for such Real Property, the
         manner of such determination to be consistent for all Real Property
         unless otherwise approved by the Managing Agent.

                  "NOI" means, with respect to any Revenue-Producing Property
         and with respect to any fiscal period, the SUM OF (a) the net income of
         that Revenue-Producing Property for that period, PLUS (b) Interest
         Expense of that Revenue-Producing Property for that period, PLUS (c)
         the aggregate amount of federal and state taxes on or measured

                                     -19-
<PAGE>

         by income of that Revenue-Producing Property for that period
         (whether or not payable during that period), PLUS (d) depreciation,
         amortization and all other non-cash expenses of that
         Revenue-Producing Property for that period, in each case as
         determined in accordance with Generally Accepted Accounting
         Principles.

                  "NOTES" means the Line Notes, the Competitive Advance Notes
         and the Swing Loan Note.

                  "OBLIGATIONS" means all present and future obligations of
         every kind or nature of Borrowers at any time and from time to time
         owed to the Managing Agent or the Banks or any one or more of them,
         under any one or more of the Loan Documents, whether due or to become
         due, matured or unmatured, liquidated or unliquidated, or contingent or
         noncontingent, INCLUDING obligations of performance as well as
         obligations of payment, and INCLUDING interest that accrues after the
         commencement of any proceeding under any Debtor Relief Law by or
         against Borrowers.

                  "OPINIONS OF COUNSEL" means the favorable written legal
         opinions of (a) Ballard Spahr Andrews & Ingersoll, LLP, special
         Maryland counsel to Borrowers and (b) Skadden, Arps, Slate, Meagher &
         Flom, LLP, special counsel to Borrowers, substantially in the form of
         EXHIBITS I-1 AND I-2 , respectively, together with copies of all
         factual certificates and legal opinions delivered to such counsel in
         connection with such opinion upon which such counsel has relied.

                  "PARENT'S PROPORTIONAL SHARE" means, with respect to any
         Related Venture, the percentage of the direct and indirect equity
         ownership interest of Parent in the Related Venture.

                  "PARTY" means any Person other than the Managing Agent and the
         Banks, which now or hereafter is a party to any of the Loan Documents.

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
         successor thereof established under ERISA.

                  "PENSION PLAN" means any "employee pension benefit plan" (as
         such term is defined in Section 3(2) of ERISA), OTHER THAN a
         Multiemployer Plan, which is subject to Title IV of ERISA and is
         maintained by Borrowers or to which Borrowers contribute or have an
         obligation to contribute.

                  "PERMITTED ENCUMBRANCES" means:

                           (a) Inchoate Liens incident to construction on or
                  maintenance of Property; or Liens incident to construction on
                  or maintenance of Property now or hereafter filed of record
                  for which adequate reserves have been set aside (or deposits
                  made pursuant to applicable Law) and which are being contested
                  in good faith by appropriate proceedings and have not
                  proceeded to judgment,

                                     -20-
<PAGE>

                  PROVIDED that, by reason of nonpayment of the obligations
                  secured by such Liens, no such Property is subject to a
                  material impending risk of loss or forfeiture;

                           (b) Liens for taxes and assessments on Property which
                  are not yet past due; or Liens for taxes and assessments on
                  Property for which adequate reserves have been set aside and
                  are being contested in good faith by appropriate proceedings
                  and have not proceeded to judgment, PROVIDED that, by reason
                  of nonpayment of the obligations secured by such Liens, no
                  such Property is subject to a material impending risk of loss
                  or forfeiture;

                           (c) defects and irregularities in title to any
                  Property which in the aggregate do not materially impair the
                  fair market value or use of the Property for the purposes for
                  which it is or may reasonably be expected to be held;

                           (d) easements, exceptions, reservations, or other
                  agreements for the purpose of pipelines, conduits, cables,
                  wire communication lines, power lines and substations,
                  streets, trails, walkways, drainage, irrigation, water, and
                  sewerage purposes, dikes, canals, ditches, the removal of oil,
                  gas, coal, or other minerals, and other like purposes
                  affecting Property which in the aggregate do not materially
                  burden or impair the fair market value or use of such Property
                  for the purposes for which it is or may reasonably be expected
                  to be held;

                           (e) easements, exceptions, reservations, or other
                  agreements for the purpose of facilitating the joint or common
                  use of Property in or adjacent to a shopping center or similar
                  project affecting Property which in the aggregate do not
                  materially burden or impair the fair market value or use of
                  such Property for the purposes for which it is or may
                  reasonably be expected to be held;

                           (f) rights reserved to or vested in any Governmental
                  Agency to control or regulate, or obligations or duties to any
                  Governmental Agency with respect to, the use of any Property;

                           (g) rights reserved to or vested in any Governmental
                  Agency to control or regulate, or obligations or duties to any
                  Governmental Agency with respect to, any right, power,
                  franchise, grant, license, or permit;

                           (h) present or future zoning laws and ordinances or
                  other laws and ordinances restricting the occupancy, use, or
                  enjoyment of Property which in the aggregate do not materially
                  burden or impair the fair market value or use of such Property
                  for the purposes for which it is or may reasonably be expected
                  to be held;

                           (i) statutory Liens, other than those described in
                  clauses (A) or (B) above, arising in the ordinary course of
                  business (but not in connection with

                                     -21-
<PAGE>

                  the incurrence of any Indebtedness) with respect to
                  obligations which are not delinquent or are being contested
                  in good faith, PROVIDED that, if delinquent, adequate
                  reserves have been set aside with respect thereto and, by
                  reason of nonpayment, no Property is subject to a material
                  impending risk of loss or forfeiture;

                           (j) covenants, conditions, and restrictions affecting
                  the use of Property which may not give rise to any Lien
                  against such Property and which in the aggregate do not
                  materially impair the fair market value or use of the Property
                  for the purposes for which it is or may reasonably be expected
                  to be held;

                           (k) rights of tenants as tenants only under leases
                  and rental agreements covering Property entered into in the
                  ordinary course of business of the Person owning such
                  Property;

                           (l) Liens consisting of pledges or deposits to secure
                  obligations under workers' compensation laws or similar
                  legislation, including Liens of judgments thereunder which are
                  not currently dischargeable;

                           (m) Liens consisting of pledges or deposits of
                  Property to secure performance in connection with operating
                  leases made in the ordinary course of business, PROVIDED the
                  aggregate value of all such pledges and deposits in connection
                  with any such lease does not at any time exceed 20% of the
                  annual fixed rentals payable under such lease;

                           (n) Liens consisting of deposits of Property to
                  secure bids made with respect to, or performance of, contracts
                  (OTHER THAN contracts creating or evidencing an extension of
                  credit to the depositor);

                           (o) Liens consisting of any right of offset, or
                  statutory bankers' lien, on bank deposit accounts maintained
                  in the ordinary course of business so long as such bank
                  deposit accounts are not established or maintained for the
                  purpose of providing such right of offset or bankers' lien;

                           (p) Liens consisting of deposits of Property to
                  secure statutory obligations of Borrowers;

                           (q) Liens created by or resulting from any litigation
                  or legal proceeding in the ordinary course of business which
                  is currently being contested in good faith by appropriate
                  proceedings, PROVIDED that, adequate reserves have been set
                  aside and no material Property is subject to a material
                  impending risk of loss or forfeiture; and

                                     -22-
<PAGE>

                           (r) other non-consensual Liens incurred in the
                  ordinary course of business but not in connection with the
                  incurrence of any Indebtedness, which do not individually
                  involve amounts in excess of $200,000.00 or in the aggregate
                  involve amounts in excess of $500,000.00.

                  "PERMITTED RIGHT OF OTHERS" means a Right of Others consisting
         of (a) an interest (OTHER THAN a legal or equitable co-ownership
         interest, an option or right to acquire a legal or equitable
         co-ownership interest and any interest of a ground lessor under a
         ground lease), that does not materially impair the fair market value or
         use of Property for the purposes for which it is or may reasonably be
         expected to be held, (b) an option or right to acquire a Lien that
         would be a Permitted Encumbrance, (c) the subordination of a lease or
         sublease in favor of a financing entity and (d) a license, or similar
         right, of or to Intangible Assets granted in the ordinary course of
         business.

                  "PERSON" means any individual or entity, INCLUDING a trustee,
         corporation, limited liability company, general partnership, limited
         partnership, joint stock company, trust, estate, unincorporated
         organization, business association, firm, joint venture, Governmental
         Agency, or other entity.

                  "PREFERRED DISTRIBUTIONS" means for any period, the amount of
         any and all Distributions due and payable to the holders of any form of
         preferred stock (whether perpetual, convertible or otherwise) or other
         ownership or beneficial interest in Parent or any of its Subsidiaries
         that entitles the holders thereof to preferential payment or
         distribution priority with respect to dividends, assets or other
         payments over the holders of any other stock or other ownership or
         beneficial interest in such Person.

                  "PRICING CERTIFICATE" means a certificate in the form of
         EXHIBIT J, properly completed and signed by a Senior Officer of
         Borrowers.

                  "PRICING PERIOD" means (a) the period commencing on the
         Closing Date and ending on June 1, 2000, (b) the period commencing on
         each June 2, and ending on the next following September 1, (c) the
         period commencing on each September 2, and ending on the next following
         December 1, (d) the period commencing on each December 2 and ending on
         the next following March 1, and (e) the period commencing on each March
         2 and ending on the next following June 1.

                  "PROPERTY" means any interest in any kind of property or
         asset, whether real, personal or mixed, or tangible or intangible.

                  "PRO RATA SHARE" means, with respect to each Bank, the
         percentage of the Commitments set forth opposite the name of that Bank
         on SCHEDULE 1.1, as such percentage may be increased or decreased
         pursuant to a Commitments Assignment and Acceptance executed in
         accordance with Section 11.8.

                                     -23-
<PAGE>

                  "QUALIFIED UNENCUMBERED ASSET POOL PROPERTY" means a
         Revenue-Producing Property that (a) is wholly owned in fee simple
         absolute or a leasehold interest pursuant to a Mortgageable Ground
         Lease by Parent or any other Borrower that is a Wholly-Owned
         Subsidiary, (b) is occupied or available for occupancy, (c) to the best
         of Borrowers' knowledge and belief, does not have any title, survey,
         environmental or other defects that would give rise to a materially
         adverse effect as to the value, use of or ability to sell or refinance
         such property, (d) is Unencumbered, and (e) would not cause the
         Borrowers to be in violation of the covenant set forth in Section 5.17.

                  "QUARTERLY PAYMENT DATE" means each July 1, October 1, January
         1 and April 1.

                  "REAL PROPERTY" means, as of any date of determination, all
         real property then or theretofore owned, leased or occupied by any of
         Borrowers.

                  "REFERENCE RATE" means the rate of interest announced from
         time to time by the Domestic Reference Bank in Boston, Massachusetts
         (or other headquarters city of the Domestic Reference Bank), as its
         "base rate." It is a rate set by the Domestic Reference Bank based upon
         various factors including the Domestic Reference Bank's costs and
         desired return, general economic conditions and other factors, and is
         used as a reference point for pricing some loans, which may be priced
         at, above, or below such announced rate. Any change in the Reference
         Rate announced by the Domestic Reference Bank shall take effect at the
         opening of business on the day on which such change in the base rate
         becomes effective.

                  "REGULATION D" means Regulation D, as at any time amended, of
         the Board of Governors of the Federal Reserve System, or any other
         regulation in substance substituted therefor.

                  "REGULATIONS T, U AND X" means Regulations T, U and X, as at
         any time amended, of the Board of Governors of the Federal Reserve
         System, or any other regulations in substance substituted therefor.

                  "RELATED VENTURE" means a corporation, limited liability
         company, partnership or other Person that owns one or more
         Revenue-Producing Properties and which is not a Wholly-Owned
         Subsidiary.

                  "RENT ROLL" means a report prepared by a Borrower showing for
         the Real Property owned by it, its occupancy, lease expiration dates,
         lease rent and other information in substantially the form presented to
         the Managing Agent prior to the date hereof or in such other form as
         may have been approved by the Managing Agent.

                  "REQUEST FOR LOAN" means a written request for a Loan
         substantially in the form of EXHIBIT K, signed by a Responsible
         Official of any of Borrowers, on behalf of Borrowers, and properly
         completed to provide all information required to be included therein.

                                     -24-
<PAGE>

                  "REQUIREMENT OF LAW" means, as to any Person, the articles or
         certificate of incorporation and by-laws or other organizational or
         governing documents of such Person, and any Law, or judgment, award,
         decree, writ or determination of a Governmental Agency, in each case
         applicable to or binding upon such Person or any of its Property or to
         which such Person or any of its Property is subject.

                  "REQUISITE BANKS" means (a) as of any date of determination if
         the Commitments are then in effect, Banks having in the aggregate 67%
         or more of the Commitments then in effect and (b) as of any date of
         determination if the Commitments have then been suspended or terminated
         and there is then any Indebtedness evidenced by the Notes, Banks
         holding Notes evidencing in the aggregate 67% or more of the aggregate
         Indebtedness then evidenced by the Notes.

                  "RESPONSIBLE OFFICIAL" means (a) when used with reference to a
         Person other than an individual, any corporate officer of such Person,
         general partner or managing member of such Person, corporate officer of
         a corporate general partner or managing member of such Person, or
         corporate officer of a corporate general partner of a partnership that
         is a general partner of such Person or corporate managing member of a
         limited liability company that is a managing member of such Person, or
         any other responsible official thereof duly acting on behalf thereof,
         and (b) when used with reference to a Person who is an individual, such
         Person. The Banks shall be entitled to conclusively rely upon any
         document or certificate that is signed or executed by a Responsible
         Official of Parent or any of its Subsidiaries as having been authorized
         by all necessary corporate, partnership and/or other action on the part
         of Parent or such Subsidiary.

                  "REVENUE-PRODUCING PROPERTY" means an identifiable improved
         real estate property that is utilized principally for office,
         office/laboratory, research or manufacturing/warehouse purposes
         (INCLUDING the underlying real property and all appurtenant real
         property rights) or for such other purposes as the Requisite Banks may
         approve which produces revenue to a Borrower or its Subsidiary.

                  "RIGHT OF OTHERS" means, as to any Property in which a Person
         has an interest, any legal or equitable right, title or other interest
         (other than a Lien) held by any other Person in that Property, and any
         option or right held by any other Person to acquire any such right,
         title or other interest in that Property, INCLUDING any option or right
         to acquire a Lien; PROVIDED, however, that (a) no covenant restricting
         the use or disposition of Property of such Person contained in any
         Contractual Obligation of such Person and (b) no provision contained in
         a contract creating a right of payment or performance in favor of a
         Person that conditions, limits, restricts, diminishes, transfers or
         terminates such right shall be deemed to constitute a Right of Others.

                  "SECURED DEBT" means Indebtedness of Parent or any of its
         Subsidiaries (INCLUDING Indebtedness of a Related Venture which is the
         subject of a Guaranty Obligation of Parent or a Subsidiary of Parent
         or, if such Person is a partnership, of

                                     -25-
<PAGE>

         which Parent or a Subsidiary of Parent is a general partner,
         Parent=s or such Subsidiaries= pro rata share of any such
         Indebtedness of unconsolidated Persons) that is secured by a Lien or
         is subject to a Negative Pledge.

                  "SENIOR OFFICER" means (a) the chief executive officer, (b)
         the chairman or (c) the chief financial officer, in each case of any of
         the Borrowers or of any of their corporate general partners or managing
         members, as applicable.

                  "SPECIAL LIBOR CIRCUMSTANCE" means the application or adoption
         after the Closing Date of any Law or interpretation, or any change
         therein or thereof, or any change in the interpretation or
         administration thereof by any Governmental Agency, central bank or
         comparable authority charged with the interpretation or administration
         thereof, or compliance by any Bank or its LIBOR Lending Office with any
         request or directive (whether or not having the force of Law) of any
         such Governmental Agency, central bank or comparable authority.

                  "STOCKHOLDERS' EQUITY" means, as of any date of determination,
         the Adjusted Tangible Assets of the Parent and its Subsidiaries as of
         that date MINUS Total Liabilities of Parent and its Subsidiaries as of
         such date.

                  "SUBSIDIARY" means, as of any date of determination and with
         respect to any Person, (a) any corporation, limited liability company,
         partnership or other Person (whether or not, in any case, characterized
         as such or as a "joint venture"), whether now existing or hereafter
         organized or acquired: (i) in the case of a corporation or limited
         liability company, of which a majority of the securities having
         ordinary voting power for the election of directors or other governing
         body (other than securities having such power only by reason of the
         happening of a contingency) are at the time beneficially owned by such
         Person and/or one or more Subsidiaries of such Person, or (ii) in the
         case of a partnership, of which a majority of the partnership or other
         ownership interests are at the time beneficially owned by such Person
         and/or one or more of its Subsidiaries; and (b) any other Person the
         accounts of which are consolidated with the accounts of the designated
         parent.

                  "SWAP AGREEMENT" means a written agreement between Borrowers
         and one or more financial institutions, including without limitation,
         BankBoston, providing for "swap", "cap", "collar" or other interest
         rate protection with respect to any Indebtedness.

                  "SWING LOANS" means the loans described in Section 2.5.

                  "SWING LOAN BANK" means, collectively, BankBoston, in its
         capacity as Swing Loan Bank and any other Bank who shall agree to make
         Swing Loans.

                  "SWING LOAN COMMITMENT" means the sum of $10,000,000.00, as
         the same may be changed from time to time in accordance with the terms
         of this Agreement.

                                     -26-
<PAGE>

                  "SWING LOAN NOTE" means the note described in Section 2.5.

                  "TEST DEBT SERVICE COVERAGE AMOUNT" means the amount described
         in the definition of "Borrowing Base."

                  "TOTAL ASSETS" means all assets of a Person and its
         Subsidiaries determined on a consolidated basis in accordance with
         Generally Accepted Accounting Principles; provided that all Real
         Property owned by a Person that is improved and is not under
         development for the purposes of Section 6.10 shall be valued based on
         its Asset Value. In the event that a Person has an ownership or other
         equity interest in any other Person, which investment is not
         consolidated in accordance with Generally Accepted Accounting
         Principles (that is, such interest is a "minority interest"), then the
         assets of a Person and its Subsidiaries shall include such Person=s or
         its Subsidiaries= allocable share of all assets of such Person in which
         a minority interest is owned based on such Person=s respective
         ownership interest in such other Person.

                  "TOTAL LIABILITIES" means all liabilities of a Person and its
         Subsidiaries determined on a consolidated basis in accordance with
         Generally Accepted Accounting Principles and all Indebtedness and
         Guaranty Obligations of such Person and its Subsidiaries, whether or
         not so classified. In the event that a Person has an ownership or other
         equity interest in any other Person, which investment is not
         consolidated in accordance with Generally Accepted Accounting
         Principles (that is, such interest is a Aminority interest@), then the
         liabilities of a Person and its Subsidiaries shall include such
         Person=s or its Subsidiaries= allocable share of all indebtedness of
         such Person in which a minority interest is owned based on such
         Person=s respective ownership interest in such other Person.

                  "TO THE BEST KNOWLEDGE OF" means, when modifying a
         representation, warranty or other statement of any Person, that the
         fact or situation described therein is known by the Person (or, in the
         case of a Person other than a natural Person, known by a Responsible
         Official of that Person) making the representation, warranty or other
         statement, or with the exercise of reasonable due diligence under the
         circumstances (in accordance with the standard of what a reasonable
         Person in similar circumstances would have done) would have been known
         by the Person (or, in the case of a Person other than a natural Person,
         would have been known by a Responsible Official of that Person).

                  "TYPE", when used with respect to any Loan or Advance, means
         the designation of whether such Loan or Advance is an Alternate Base
         Rate Loan or Advance, or a LIBOR Rate Loan or Advance.

                  "UNENCUMBERED" means, with respect to any Revenue-Producing
         Property, that such Revenue-Producing Property (a) is not subject to
         any Lien OTHER THAN Permitted Encumbrances, (b) is not subject to any
         Negative Pledge and (c) is not held by a

                                     -27-

<PAGE>

         Person any of whose equity interests are subject to a Lien or
         Negative Pledge in favor of any creditor of Parent or any of its
         Subsidiaries.

                  "UNENCUMBERED ASSET POOL" means, as of any date of
         determination, (a) the Initial Pool Properties, PLUS (b) each other
         Qualified Unencumbered Asset Pool Property which has been added to the
         Unencumbered Asset Pool pursuant to Section 2.11 as of such date, MINUS
         (c) any Revenue-Producing Property which has been removed from the
         Unencumbered Asset Pool pursuant to Section 2.11 as of such date.

                  "WHOLLY-OWNED SUBSIDIARY" means a Subsidiary of Parent, 100%
         of the capital stock or other equity interest of which is owned,
         directly or indirectly, by Parent, EXCEPT for director's qualifying
         shares required by applicable Laws.

                  1.2 USE OF DEFINED TERMS. Any defined term used in the plural
shall refer to all members of the relevant class, and any defined term used in
the singular shall refer to any one or more of the members of the relevant
class.

                  1.3 ACCOUNTING TERMS. All accounting terms not specifically
defined in this Agreement shall be construed in conformity with, and all
financial data required to be submitted by this Agreement shall be prepared in
conformity with, Generally Accepted Accounting Principles applied on a
consistent basis, EXCEPT as otherwise specifically prescribed herein. In the
event that Generally Accepted Accounting Principles change during the term of
this Agreement such that the covenants contained in Sections 6.5 through 6.15,
inclusive, would then be calculated in a different manner or with different
components, (a) Borrowers and the Banks agree to amend this Agreement in such
respects as are necessary to conform those covenants as criteria for evaluating
Borrowers' financial condition to substantially the same criteria as were
effective prior to such change in Generally Accepted Accounting Principles and
(b) Borrowers shall be deemed to be in compliance with the covenants contained
in the aforesaid Sections if and to the extent that Borrowers would have been in
compliance therewith under Generally Accepted Accounting Principles as in effect
immediately prior to such change, but shall have the obligation to deliver each
of the materials described in ARTICLE 7 to the Managing Agent and the Banks, on
the dates therein specified, with financial data presented in a manner which
conforms with Generally Accepted Accounting Principles as in effect immediately
prior to such change.

                  1.4 ROUNDING. Any financial ratios required to be maintained
by Borrowers pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed in this
Agreement and rounding the result up or down to the nearest number (with a
round-up if there is no nearest number) to the number of places by which such
ratio is expressed in this Agreement.

                  1.5 EXHIBITS AND SCHEDULES. All Exhibits and Schedules to this
Agreement, either as originally existing or as the same may from time to time be
supplemented, modified

                                     -28-
<PAGE>

or amended, are incorporated herein by this reference. A matter disclosed on
any Schedule shall be deemed disclosed on all Schedules.

                  1.6 REFERENCES TO "BORROWERS AND THEIR SUBSIDIARIES". Any
reference herein to "Borrowers and their Subsidiaries" or the like shall refer
solely to Borrowers during such times, if any, as Borrowers shall have no
Subsidiaries.

                  1.7 MISCELLANEOUS TERMS. The term "or" is disjunctive; the
term "and" is conjunctive. The term "shall" is mandatory; the term "may" is
permissive. Masculine terms also apply to females; feminine terms also apply to
males. The term "including" is by way of example and not limitation.

                                     Article 2
                                       LOANS

                  2.1  COMMITTED LOANS-GENERAL.

                           (a) Subject to the terms and conditions set forth in
         this Agreement, at any time and from time to time from the Closing Date
         through the Maturity Date, each Bank shall, pro rata according to that
         Bank's Pro Rata Share of the then applicable Line Commitment, make
         Advances to Borrowers under the Line Commitment in such amounts as
         Borrowers may request that do not result in (i) the aggregate principal
         amount outstanding under the Line Notes (after giving effect to all
         amounts requested thereunder) PLUS the Letter of Credit Exposure PLUS
         the aggregate amount of Swing Loans outstanding being in excess of the
         Line Commitment, and (ii) the aggregate principal amount outstanding
         under the Notes (after giving effect to all amounts requested
         thereunder) PLUS the Letter of Credit Exposure being in excess of the
         LESSER OF (A) the Line Commitment or (B) the Borrowing Base; provided
         that in all events no Default or Event of Default shall have occurred
         and be continuing. Subject to the limitations set forth herein,
         Borrowers may borrow, repay and reborrow under the Line Commitment
         without premium or penalty.

                           (b) [INTENTIONALLY OMITTED].

                           (c) Subject to the next sentence, each Loan shall be
         made pursuant to a Request for Loan which shall specify the requested
         (i) date of such Loan, (ii) type of Loan, (iii) amount of such Loan,
         and (iv) in the case of a LIBOR Rate Loan, the Interest Period for such
         Loan. Unless the Managing Agent has notified, in its sole and absolute
         discretion, Borrowers to the contrary, a Loan may be requested by
         telephone by a Responsible Official of Borrowers, in which case
         Borrowers shall confirm such request by promptly delivering a Request
         for Loan in person or by telecopier conforming to the preceding
         sentence to the Managing Agent. Managing Agent shall incur no liability
         whatsoever hereunder in acting upon any telephonic request for Loan
         purportedly made by a Responsible Official of Borrowers, and Borrowers
         hereby agree

                                     -29-
<PAGE>

         to indemnify the Managing Agent from any loss, cost, expense or
         liability as a result of so acting.

                           (d) Promptly following receipt of a Request for Loan,
         the Managing Agent shall notify each Bank by telephone or telecopier
         (and if by telephone, promptly confirmed by telecopier) of the date and
         type of the Loan, the applicable Interest Period, and that Bank's Pro
         Rata Share of the Loan. Not later than 2:00 p.m., Massachusetts time,
         on the date specified for any Loan (which must be a Banking Day), each
         Bank shall make its Pro Rata Share of the Loan in immediately available
         funds available to the Managing Agent at the Managing Agent's Office.
         Upon satisfaction or waiver of the applicable conditions set forth in
         ARTICLE 8, all Advances shall be credited on that date in immediately
         available funds to the Designated Deposit Account.

                           (e) Unless the Requisite Banks otherwise consent,
         each Alternate Base Rate Loan shall be not less than $1,000,000, each
         LIBOR Rate Loan shall be not less than $2,000,000 and all Loans shall
         be in an integral multiple of $100,000.

                           (f) The Advances made by each Bank under the Line
         Commitment shall be evidenced by that Bank's Line Note.

                           (g) A Request for Loan shall be irrevocable upon the
         Managing Agent's first notification thereof.

                           (h) If no Request for Loan (or telephonic request for
         Loan referred to in the second sentence of Section 2.1(c), if
         applicable) has been made within the requisite notice periods set forth
         in Section 2.2 or 2.3 prior to the end of the Interest Period for any
         LIBOR Rate Loan, then on the last day of such Interest Period, such
         LIBOR Rate Loan shall be automatically converted into an Alternate Base
         Rate Loan in the same amount.

                  2.2 ALTERNATE BASE RATE LOANS. Each request by Borrowers for
an Alternate Base Rate Loan shall be made pursuant to a Request for Loan (or
telephonic or other request for loan referred to in the second sentence of
Section 2.1(C), if applicable) received by the Managing Agent, at the Managing
Agent's Office, not later than 2:00 p.m. Massachusetts time, on the date (which
must be a Banking Day) prior to the date of the requested Alternate Base Rate
Loan. All Loans shall constitute Alternate Base Rate Loans unless properly
designated as a LIBOR Rate Loan pursuant to Section 2.3.

                  2.3  LIBOR RATE LOANS.

                           (a) Each request by Borrowers for a LIBOR Rate Loan
         shall be made pursuant to a Request for Loan (or telephonic or other
         request for Loan referred to in the second sentence of SECTION 2.1(C),
         if applicable) received by the Managing Agent, at the Managing Agent's
         Office, not later than 2:00 p.m., Massachusetts time, at

                                     -30-
<PAGE>

         least three (3) LIBOR Banking Days before the first day of the
         applicable LIBOR Period.

                           (b) On the date which is two (2) LIBOR Banking Days
         before the first day of the applicable LIBOR Period, the Managing Agent
         shall confirm its determination of the applicable LIBOR Rate (which
         determination shall be conclusive in the absence of manifest error) and
         promptly shall give notice of the same to Borrowers and the Banks by
         telephone or telecopier (and if by telephone, promptly confirmed by
         telecopier).

                           (c) Unless the Managing Agent and the Requisite Banks
         otherwise consent, no more than fifteen (15) LIBOR Rate Loans shall be
         outstanding at any one time.

                           (d) No LIBOR Rate Loan may be requested or continued
         during the continuation of a Default or Event of Default.

                           (e) Nothing contained herein shall require any Bank
         to fund any LIBOR Rate Advance in the London interbank market.

                  2.4  COMPETITIVE ADVANCES.

                           (a) Subject to the terms and conditions hereof, at
         any time and from time to time from the Closing Date through the
         Maturity Date, each Bank may in its sole and absolute discretion make
         Competitive Advances to Borrowers in such principal amounts as
         Borrowers may request pursuant to a Competitive Bid Request that do not
         result in (i) the aggregate principal amount outstanding under the
         Competitive Advance Notes (after giving effect to all amounts requested
         thereunder) PLUS the Letter of Credit Exposure PLUS the aggregate
         amount of Swing Loans outstanding being in excess of the LESSER OF (A)
         $75,000,000 or (B) an amount equal to 33-1/3% of the Line Commitment,
         and (ii) the aggregate principal amount outstanding under the Notes
         (after giving effect to all amounts requested thereunder) PLUS the
         Letter of Credit Exposure being in excess of the LESSER OF (A) the Line
         Commitment or (B) the available Borrowing Base. A Bank lending to the
         Borrowers pursuant to this Section 2.4 shall remain obligated to make
         Committed Loans in accordance with its Pro Rata Share as provided in
         Section 2.1.

                           (b) Borrowers shall request Competitive Advances by
         submitting a duly completed Competitive Bid Request to the Managing
         Agent, which Competitive Bid Request shall specify the relevant date,
         amount and maturity for the proposed Competitive Advance and shall
         state whether a Competitive Bid is requested on the basis of a fixed
         interest rate (an "Absolute Rate Bid") or on the basis of a margin over
         the LIBOR Rate (a "LIBOR Margin Bid") and which shall be accompanied by
         payment of a nonrefundable $2500 competitive bid request fee for the
         account of the Managing Agent. If a LIBOR Margin Bid is requested, the
         maturity date shall be one

                                     -31-
<PAGE>

         of the periods permitted for a LIBOR Period for LIBOR Rate Loans,
         and any such advance shall be a LIBOR Rate Loan. The proposed
         funding date shall be a Banking Day in the case of an Absolute Rate
         Bid or a LIBOR Banking Day in the case of a LIBOR Margin Bid. The
         Managing Agent shall incur no liability whatsoever hereunder in
         acting upon any Competitive Bid Request purportedly made by a
         Responsible Official of Borrowers, which hereby agrees to indemnify
         the Managing Agent from any loss, cost, expense or liability as a
         result of so acting. The Competitive Bid Request must be received by
         the Managing Agent not later than 12:00 noon Massachusetts time on a
         Banking Day that is at least five (5) Banking Days prior to the date
         of the proposed Competitive Advance.

                           (c) Unless the Managing Agent otherwise agrees, in
         its sole and absolute discretion, no Competitive Bid Request shall be
         made by Borrowers if Borrowers have within the current calendar month
         submitted five (5) or more Competitive Bid Requests.

                           (d) Each Competitive Bid Request must be made for a
         Competitive Advance of at least $10,000,000 and shall be in an integral
         multiple of $1,000,000.

                           (e) No Competitive Bid Request shall be made for a
         Competitive Advance with a maturity of less than 7 days or more than
         180 days, or with a maturity date subsequent to the Maturity Date.

                           (f) The Managing Agent shall, promptly after receipt
         of a Competitive Bid Request, provide the Banks a copy thereof by
         telecopier. Any Bank may, by written notice to the Managing Agent,
         advise the Managing Agent that it elects not to be so notified of
         Competitive Bid Requests, in which case the Managing Agent shall not
         notify such Bank of the Competitive Bid Request.

                           (g) Each Bank receiving a Competitive Bid Request
         may, in its sole and absolute discretion, make or not make a
         Competitive Bid responsive to the Competitive Bid Request. Each
         Competitive Bid shall be submitted so as to be received by the Managing
         Agent not later than 12:00 noon (or, in the case of the Domestic
         Reference Bank, not later than 11:45 a.m.) Massachusetts time on the
         date which is four (4) Banking Days prior to the requested Competitive
         Advance. Any Competitive Bid received by the Managing Agent after 12:00
         noon (or 11:45 a.m. in the case of the Domestic Reference Bank) on such
         date shall be disregarded for purposes of this Agreement. The Managing
         Agent shall incur no liability whatsoever hereunder in acting upon any
         Competitive Bid purportedly made by a Responsible Official of a Bank,
         each of which hereby agrees to indemnify the Managing Agent from any
         loss, cost, expense or liability as a result of so acting with respect
         to that Bank.

                           (h) Each Competitive Bid shall specify the fixed
         interest rate or the margin over the LIBOR Rate, as applicable, for the
         offered Maximum Competitive

                                     -32-
<PAGE>

         Advance set forth in the Competitive Bid. The Maximum Competitive
         Advance offered by a Bank in a Competitive Bid shall not exceed the
         Competitive Advance requested and may be less than the Competitive
         Advance requested by Borrowers in the Competitive Bid Request, but
         shall be an integral multiple of $1,000,000. Any Competitive Bid
         which offers an interest rate OTHER THAN a fixed interest rate or a
         margin over the LIBOR Rate, is in a form other than set forth in
         EXHIBIT C or which otherwise contains any term, condition,
         qualification or provision not contained in the Competitive Bid
         Request (including without limitation a requirement of a minimum
         advance) or is received after the time set forth in Section 2.4(g)
         shall be disregarded for purposes of this Agreement. A Competitive
         Bid once submitted to the Managing Agent shall, subject to the terms
         of Sections 3.8(c), 3.8(d) and Section 8.2, be irrevocable until
         12:00 noon Massachusetts time on the date which is three (3) Banking
         Days prior to the requested Competitive Advance set forth in the
         related Competitive Bid Request, and shall expire by its terms at
         such time unless accepted by Borrowers prior thereto.

                           (i) Promptly after 12:00 noon Massachusetts time on
         the date which is four (4) Banking Days prior to the date of the
         proposed Competitive Advance, the Managing Agent shall notify Borrowers
         of the names of the Banks providing Competitive Bids to the Managing
         Agent at or before 12:00 noon on that date (or 11:45 a.m. in the case
         of the Domestic Reference Bank) and satisfying the conditions of this
         Section 2.4 and the Maximum Competitive Advance and fixed interest rate
         or margin over the LIBOR Rate set forth by each such Bank in its
         Competitive Bid.

                           (j) Borrowers may, in their sole and absolute
         discretion, reject any or all of the Competitive Bids. If Borrowers
         accept any Competitive Bid, the following shall apply: (i) Borrowers
         must accept all Absolute Rate Bids at all lower fixed interest rates
         before accepting any portion of an Absolute Rate Bid at a higher fixed
         interest rate, (ii) Borrowers must accept all LIBOR Margin Bids at all
         lower margins over the LIBOR Rate before accepting any portion of a
         LIBOR Margin Bid at a higher margin over the LIBOR Rate, (iii) if two
         or more Banks have submitted a Competitive Bid at the same fixed
         interest rate or margin, then Borrowers must accept either all of such
         Competitive Bids or accept such Competitive Bids in the same proportion
         as the Maximum Competitive Advance of each Bank bears to the aggregate
         Maximum Competitive Advances of all such Banks, (iv) Borrowers may not
         accept Competitive Bids for an aggregate amount in excess of the
         requested Competitive Advance set forth in the Competitive Bid Request,
         and (v) the principal amount of the Competitive Bids accepted must be
         at least $10,000,000 and shall be in an integral multiple of
         $1,000,000. Acceptance by Borrowers of a LIBOR Margin Bid or Absolute
         Rate Bid must be made prior to 12:00 noon Massachusetts time on the
         date which is three (3) Banking Days prior to the requested Competitive
         Advance. Acceptance of a Competitive Bid by Borrowers shall be
         accomplished by written notification thereof to the Managing Agent and
         shall be irrevocable upon such notification. The Managing Agent shall
         promptly notify each of the Banks whose

                                     -33-
<PAGE>

         Competitive Bid has been accepted by Borrowers by telephone, which
         notification shall promptly be confirmed in writing delivered in
         person or by telecopier to such Banks. Any Competitive Bid not
         accepted or rejected by Borrowers by 12:00 noon Massachusetts time,
         on the date which is three (3) Banking Days prior to the proposed
         Competitive Advance, shall be deemed rejected.

                           (k) In the case of a LIBOR Margin Bid, the Managing
         Agent shall determine the LIBOR Rate on the date which is two (2) LIBOR
         Banking Days prior to the date of the proposed Competitive Advance, and
         shall promptly thereafter notify Borrowers and the Banks whose LIBOR
         Margin Bids were accepted by Borrowers of such LIBOR Rate.

                           (l) A Bank whose Competitive Bid has been accepted by
         Borrowers shall make the Competitive Advance in accordance with the
         Competitive Bid Request and with its Competitive Bid, subject to the
         applicable conditions set forth in this Agreement, by making funds
         immediately available to the Managing Agent at the Managing Agent's
         Office in the amount of such Competitive Advance not later than 1:00
         p.m., Massachusetts time, on the date set forth in the Competitive Bid
         Request. The Managing Agent shall then promptly make available to the
         Borrowers the aggregate amount of the Competitive Advances made
         available to the Managing Agent by crediting such amount in immediately
         available funds to the Designated Deposit Account.

                           (m) The Managing Agent shall notify Borrowers and the
         Banks promptly after any Competitive Advance is made of the amounts and
         maturity of such Competitive Advances and the identity of the Banks
         making such Competitive Advances.

                           (n) The Competitive Advances made by a Bank shall be
         evidenced by that Bank's Competitive Advance Note.

                           (o) No Competitive Advance may be prepaid without the
         prior written consent of the affected Bank.

                           (p) Notwithstanding anything in this Section 2.4 or
         this Agreement to the contrary, the provisions of this Section 2.4
         shall not be effective and the Borrowers shall not be entitled to
         obtain Competitive Advances until Parent shall have delivered to
         Managing Agent evidence satisfactory to Managing Agent that Parent has
         subsequent to the Closing Date obtained a Credit Rating of at least
         BBB-/Baa3.

                  2.5  SWING LOAN COMMITMENTS.

                           (a) Subject to the terms and conditions set forth in
         this Agreement, Swing Loan Bank agrees to lend to the Borrowers (the
         "Swing Loans"), and the Borrowers may borrow (and repay and reborrow)
         from time to time between the Closing Date and the

                                     -34-
<PAGE>

         date which is thirty (30) Banking Days prior to the Maturity Date
         upon notice by the Borrowers to the Swing Loan Bank given in
         accordance with this Section 2.5 such sums as are requested by the
         Borrower for the purposes set forth in Section 5.9 that do not
         result in (i) an aggregate principal amount at any one time
         outstanding being in excess of the Swing Loan Commitment, and (ii)
         the aggregate principal amount outstanding under the Notes (after
         giving effect to all amounts requested thereunder) PLUS the Letter
         of Credit Exposure being in excess of the LESSER OF (A) the Line
         Commitment or (B) the Borrowing Base. Swing Loans shall constitute
         "Loans" for all purposes hereunder, but shall not be considered the
         utilization of a Bank's Pro Rata Share of the Commitments. The
         funding of a Swing Loan hereunder shall constitute a representation
         and warranty by the Borrowers that all of the conditions set forth
         in ARTICLE 8 have been satisfied on the date of such funding (other
         than minimum Loan amount and advance notice requirements).

                           (b) The Swing Loans shall be evidenced by a separate
         promissory note of the Borrowers in substantially the form of EXHIBIT M
         hereto (the "Swing Loan Note"), dated the date of this Agreement and
         completed with appropriate insertions. The Swing Loan Note shall be
         payable to the order of the Swing Loan Bank in such amount as may be
         outstanding from time to time thereunder and shall be payable as set
         forth below. The Borrowers irrevocably authorize the Swing Loan Bank to
         make or cause to be made, at or about the time of the date of any Swing
         Loan or at the time of receipt of any payment of principal thereof, an
         appropriate notation on the Swing Loan Bank's record reflecting the
         making of such Swing Loan or (as the case may be) the receipt of such
         payment. The outstanding amount of the Swing Loans set forth on the
         Swing Loan Bank's record shall be PRIMA facie evidence of the principal
         amount thereof owing and unpaid to the Swing Loan Bank, but the failure
         to record, or any error in so recording, any such amount on the Swing
         Loan Bank's record shall not limit or otherwise affect the obligations
         of the Borrowers hereunder or under the Swing Loan Note to make
         payments of principal of or interest on any Swing Loan Note when due.

                           (c) Each borrowing of a Swing Loan shall be subject
         to the limits for Alternate Base Rate Loans and LIBOR Rate Loans set
         forth in this Agreement. The Borrowers shall request a Swing Loan by
         delivering to the Swing Loan Bank a Request for Loan no later than 2:00
         p.m. (Massachusetts time) on the requested date specifying the amount
         of the requested Swing Loan. Each such Request for Loan shall be
         irrevocable and binding on the Borrowers and shall obligate the
         Borrowers to accept such Swing Loan on the requested date.
         Notwithstanding anything herein to the contrary, a Swing Loan shall
         either be an Alternate Base Rate Loan or a LIBOR Rate Loan having an
         Interest Period of one month, and in the event that the Borrowers fail
         to specify whether they have selected an Alternate Base Rate Loan or a
         LIBOR Rate Loan, the Borrowers shall be deemed conclusively to have
         selected a LIBOR Rate Loan with an Interest Period of one month.
         Notwithstanding the foregoing, upon the date that the Banks shall be
         required to fund the Loans pursuant to Section 2.5(D) to refund such
         Swing Loan, the interest rate shall be reset to a LIBOR Rate Loan with
         an Interest Period as specified in the Request for Loan given by the
         Borrowers to the Managing Agent in connection with such Swing Loan, or
         if no Interest Period is specified, then as an Alternate Base Rate
         Loan. The proceeds of the Swing Loan will be made available

                                     -35-
<PAGE>

         by the Swing Loan Bank to the Borrowers at the Managing Agent's
         Office by crediting the account of the Borrowers at such office with
         such proceeds.

                           (d) The Swing Loan Bank shall within four (4) Banking
         Days after the date a Swing Loan is made, request each Bank, including
         the Swing Loan Bank, to make a Loan pursuant to Section 2.1 in an
         amount equal to such Bank's Pro Rata Share of the amount of the Swing
         Loan outstanding on the date such notice is given. The Borrowers hereby
         irrevocably authorize and direct the Swing Loan Bank to so act on their
         behalf, and agree that any amount advanced to the Managing Agent for
         the benefit of the Swing Loan Bank pursuant to this Section 2.5(D)
         shall be considered a Line Loan pursuant to Section 2.1. Unless any of
         the events described in Section 9.1(J) shall have occurred (in which
         event the procedures of Section 2.5(E) shall apply), each Bank shall
         make the proceeds of its Line Loan available to the Swing Loan Bank for
         the account of the Swing Loan Bank at the Managing Agent's Office prior
         to 2:00 p.m. (Boston time) in funds immediately available no later than
         the third (3rd) Banking Day after the date such notice is given just as
         if the Banks were funding directly to the Borrowers, so that thereafter
         such Obligations shall be evidenced by the Line Notes. The proceeds of
         such Line Loan shall be immediately applied to repay the Swing Loans.

                           (e) If prior to the making of a Line Loan pursuant to
         Section 2.5(D) by all of the Banks, one of the events described in
         Section 9.1(J) shall have occurred, each Bank will, on the date such
         Line Loan pursuant to Section 2.5(D) was to have been made, purchase an
         undivided participating interest in the Swing Loan in an amount equal
         to its Pro Rata Share of such Swing Loan. Each Bank will immediately
         transfer to the Swing Loan Bank in immediately available funds the
         amount of its participation and upon receipt thereof the Swing Loan
         Bank will deliver to such Bank a Swing Loan participation certificate
         dated the date of receipt of such funds and in such amount.

                           (f) Whenever at any time after the Swing Loan Bank
         has received from any Bank such Bank's participating interest in a
         Swing Loan, the Swing Loan Bank receives any payment on account
         thereof, the Swing Loan Bank will distribute to such Bank its
         participating interest in such amount (appropriately adjusted in the
         case of interest payments to reflect the period of time during which
         such Bank's participating interest was outstanding and funded);
         PROVIDED, HOWEVER, that in the event that such payment received by the
         Swing Loan Bank is required to be returned, such Bank will return to
         the Swing Loan Bank any portion thereof previously distributed by the
         Swing Loan Bank to it.

                           (g) Each Bank's obligation to fund a Line Loan as
         provided in Section 2.5(D) or to purchase participating interests
         pursuant to Section 2.5(E) shall be absolute and unconditional and
         shall not be affected by any circumstance (except only the failure of
         the Swing Loan Bank to make the request described in Section 2.5(D)),
         including, without limitation, (i) any setoff, counterclaim,
         recoupment, defense or other right which such Bank or the Borrowers may
         have against the Swing Loan Bank, the Borrowers or anyone else for any
         reason whatsoever; (ii) the occurrence or continuance of a Default or
         an Event of Default; (iii) any adverse change in the condition
         (financial or otherwise) of any of the Borrowers or any of their
         respective Subsidiaries; (iv) any breach of this Agreement or any of
         the other

                                     -36-
<PAGE>

         Loan Documents by any of the Borrowers or any Bank; or (v) any other
         circumstance, happening or event whatsoever, whether or not similar
         to any of the foregoing. The provisions of Section 2.9 shall apply
         to any Bank which fails or refuses to make a Line Loan or fund its
         participation as provided herein. Each Swing Loan, once so
         converted, shall cease to be a Swing Loan for the purposes of this
         Agreement, but shall be a Line Loan made by each Bank under its Pro
         Rata Share of the Commitments.

         2.6 LETTERS OF CREDIT.

                           (a) Subject to the terms and conditions set forth in
         this Agreement, at any time and from time to time from the Closing Date
         through the day that is thirty (30) Banking Days prior to the Maturity
         Date, the Managing Agent shall issue such Letters of Credit as the
         Borrowers may request, for the purposes provided in Section 5.9, upon
         the delivery of a written request in the form of EXHIBIT N hereto (a
         "Letter of Credit Request") to the Managing Agent, PROVIDED that (i)
         upon issuance of such Letter of Credit, the Letter of Credit Exposure
         shall not exceed Fifteen Million and No/100 Dollars ($15,000,000.00),
         (ii) the aggregate principal amount outstanding under the Notes (after
         giving effect to all amounts requested thereunder) PLUS the Letter of
         Credit Exposure shall not exceed the LESSER OF (A) the Line Commitment
         or (B) the Borrowing Base, (iii) the conditions set forth in ARTICLE 8
         shall have been satisfied, and (iv) in no event shall any amount drawn
         under a Letter of Credit be available for reinstatement or a subsequent
         drawing under such Letter of Credit. Unless the Managing Agent
         otherwise consents, the term of any Letter of Credit shall not exceed
         the lesser of twelve (12) months or a period of time commencing on the
         issuance of the Letter of Credit and ending on the date which is
         fifteen (15) days prior to the Maturity Date (but in any event the term
         shall not extend beyond the Maturity Date), and no Letter of Credit
         shall contain an automatic extension or renewal clause. The amount
         available to be drawn under any Letter of Credit shall reduce on a
         dollar for dollar basis the amount available to be drawn under the
         Commitments as a Loan.

                           (b) Each Letter of Credit Request shall be submitted
         to the Managing Agent at least five (5) Banking Days prior to the date
         upon which the requested Letter of Credit is to be issued. Following
         the receipt of a Letter of Credit Request, the Managing Agent shall
         promptly notify each of the Banks of the Letter of Credit Request. Each
         such Letter of Credit Request shall contain (i) a statement as to the
         purpose for which such Letter of Credit shall be used (which purpose
         shall be in accordance with the terms of Section 5.9), and (ii) a
         certification by a Responsible Official of the Borrowers that the
         Borrowers are and will be in compliance with all covenants under the
         Loan Documents after giving effect to the issuance of such Letter of
         Credit. The Borrowers shall further deliver to the Managing Agent such
         additional applications and documents as the Managing Agent may
         require, in conformity with the then standard practices of its letter
         of credit department in connection with the issuance of such Letter of
         Credit; provided that in the event of any conflict, the terms of this
         Agreement shall control.

                                     -37-
<PAGE>

                           (c) The Managing Agent shall, if it approves of the
         content of the Letter of Credit Request (which approval shall not be
         unreasonably withheld), and subject to the conditions set forth in this
         Agreement, issue the Letter of Credit. Each Letter of Credit shall be
         in form and substance satisfactory to the Managing Agent in its sole
         discretion. Upon issuance of a Letter of Credit, the Managing Agent
         shall provide copies of each Letter of Credit to any Bank which
         requests same.

                           (d) Upon the issuance of a Letter of Credit, each
         Bank shall be deemed to have purchased a participation therein from
         Managing Agent in an amount equal to its respective Pro Rata Share of
         the amount of such Letter of Credit, provided that no Bank shall be
         obligated to transfer funds in such amount to the Managing Agent at
         such time.

                           (e) Upon the issuance of each Letter of Credit, the
         Borrowers shall pay to the Managing Agent (i) for its own account, a
         set-up fee in the usual and customary amount charged by the Managing
         Agent=s letter of credit department, and (ii) for the accounts of the
         Banks in accordance with their respective percentage shares of
         participation in such Letter of Credit, a Letter of Credit fee
         calculated at the rate of the then Applicable LIBOR Rate Margin per
         annum (which shall not be less than 162.50 basis points per annum in
         any event) on the amount available to be drawn under such Letter of
         Credit during the period from and including the issuance date of such
         Letter of Credit to its expiration or termination date. Such fees shall
         be computed on the basis of a year of 360 days and shall be payable in
         advance with respect to each Letter of Credit on the respective date of
         issuance of each.

                           (f) If and to the extent that any amounts are drawn
         upon any Letter of Credit, the amounts so drawn shall, from the date of
         payment thereof by the Managing Agent to either the date of
         reimbursement thereof by the Borrowers or repayment through a Line Loan
         as hereinafter provided, bear interest at the Alternate Base Rate. Upon
         the receipt by the Managing Agent of any draw or other presentation for
         payment of a Letter of Credit and the payment by the Managing Agent of
         any amount under a Letter of Credit which is not reimbursed by the
         Borrowers within twenty-four (24) hours of receipt of notice from the
         Managing Agent of such draw, the Managing Agent shall, without further
         notice to or the consent of the Borrowers, direct the Banks to fund to
         the Managing Agent in accordance with Section 2.9 on or before 2:00
         p.m. (Boston time) on the next Banking Day following the Borrowers'
         failure to reimburse the Managing Agent, their respective Pro Rata
         Shares of the amount so paid by the Managing Agent as a Line Loan. The
         proceeds of such funding shall be paid to the Managing Agent to
         reimburse the Managing Agent for the payment made by it under the
         Letter of Credit and shall thereafter be evidenced by the Line Notes.
         The provisions of Section 2.9 shall apply to any Bank or Banks failing
         or refusing to fund its Pro Rata Share of any such draw. The Banks
         shall be required to make such Line Loans regardless of whether all of
         the conditions to disbursement set forth in ARTICLE 8 have been
         satisfied.

                           (g) If after the issuance of a Letter of Credit
         pursuant to Section 2.6(C) by the Managing Agent, but prior to any draw
         thereunder, one of the events described in Section 9.1(J) shall have
         occurred, each Bank will immediately transfer to the Managing Agent in
         immediately available funds the amount of its participation in such
         Letter of Credit

                                     -38-

<PAGE>

         described in Section 2.6(D) above, and upon receipt thereof the
         Managing Agent will deliver to such Bank a Letter of Credit
         participation certificate dated the date of receipt of such funds
         and in such amount. The provisions of Section 2.9 shall apply to any
         Bank which fails or refuses to fund its participation as provided
         herein. Whenever at any time after the Managing Agent has received
         from any Bank such Bank's payment of funds for its participation in
         such Letter of Credit, such Letter of Credit expires pursuant to its
         terms or is otherwise surrendered by the holder thereof, the
         Managing Agent will distribute to each Bank its participating
         interest in the undrawn amount thereof.

                           (h) Whenever at any time after the Managing Agent has
         received from any Bank such Bank's payment of funds under a Letter of
         Credit, the Managing Agent receives any payment on account thereof, the
         Managing Agent will distribute to such Bank its participating interest
         in such amount (appropriately adjusted in the case of interest payments
         to reflect the period of time during which such Bank's participating
         interest was outstanding and funded); PROVIDED, HOWEVER, that in the
         event that such payment received by the Managing Agent is required to
         be returned, such Bank will return to the Managing Agent any portion
         thereof previously distributed by the Managing Agent to it.

                           (i) [INTENTIONALLY OMITTED].

                           (j) The issuance of any supplement, modification,
         amendment, renewal or extension to or of any Letter of Credit shall be
         treated in all respects the same as the issuance of a new Letter of
         Credit.

                           (k) The obligations of the Borrowers to the Banks to
         reimburse drawings under Letters of Credit under this Agreement shall
         be absolute, unconditional and irrevocable, and shall be paid and
         performed strictly in accordance with the terms of this Agreement,
         under all circumstances whatsoever and irrespective of any setoff,
         counterclaim or defense to payment which Borrowers may have or have had
         against Managing Agent or any of the Banks (except such as may arise
         out of Managing Agent=s or any Bank=s gross negligence or willful
         misconduct), including, without limitation, any setoff, counterclaim or
         defense based upon or arising out of the following circumstances: (i)
         any improper use which may be made of any Letter of Credit or any
         improper acts or omissions of any beneficiary or transferee of any
         Letter of Credit in connection therewith; (ii) the existence of any
         claim, set-off, defense or any right which the Borrowers may have at
         any time against any beneficiary or any transferee of any Letter of
         Credit (or persons or entities for whom any such beneficiary or any
         such transferee may be acting) or the Banks (other than the defense of
         payment to the Banks in accordance with the terms of this Agreement) or
         any other person, whether in connection with any Letter of Credit, this
         Agreement, any other Loan Document, or any unrelated transaction; (iii)
         any statement or any other documents presented under any Letter of
         Credit proving to be insufficient, forged, fraudulent or invalid in any
         respect or any statement therein being untrue or inaccurate in any
         respect whatsoever; (iv) any breach of any agreement between any
         Borrower and any beneficiary or transferee of any Letter of Credit; (v)
         any irregularity in the transaction with respect to which any Letter of
         Credit is issued, including any fraud by the beneficiary or any
         transferee of such Letter of Credit; and (vi) payment by the

                                     -39-

<PAGE>

         Managing Agent under any Letter of Credit against presentation of a
         sight draft or a certificate which does not comply with the terms of
         such Letter of Credit, provided that such payment shall not have
         constituted gross negligence or willful misconduct on the part of
         the Managing Agent.

                  2.7 VOLUNTARY REDUCTION OF COMMITMENTS. Borrowers shall have
the right, at any time and from time to time, without penalty or charge, upon at
least three (3) Banking Days' prior written notice by a Responsible Official of
Borrowers to the Managing Agent, voluntarily to reduce, permanently and
irrevocably, in aggregate principal amounts in an integral multiple of
$1,000,000 but not less than $5,000,000, or to terminate, all or a portion of
the then undisbursed portion of the Commitments; provided that in no event shall
the Commitments be reduced to an amount less than $150,000,000.00. The Managing
Agent shall promptly notify the Banks of any reduction or termination of the
Commitments under this Section. Any reduction of the Commitments shall be
allocated PRO RATA among the Banks.

                  2.8 OPTIONAL TERMINATION OF COMMITMENTS. Following the
occurrence of a Change in Control, the Requisite Banks may in their sole and
absolute discretion elect, during the thirty (30) day period immediately
subsequent to the LATER OF (a) such occurrence or (b) the EARLIER of (i) receipt
of Borrowers' written notice to the Managing Agent of such occurrence or (ii) if
no such notice has been received by the Managing Agent, the date upon which the
Managing Agent has actual knowledge thereof, to terminate the Commitments, in
which case the Commitments shall be terminated effective on the date which is
thirty (30) days subsequent to written notice from the Managing Agent to
Borrowers thereof.

                  2.9 MANAGING AGENT'S RIGHT TO ASSUME FUNDS AVAILABLE FOR
ADVANCES. Unless the Managing Agent shall have been notified by any Bank no
later than 10:00 a.m. Massachusetts time on the Banking Day of the proposed
funding by the Managing Agent of any Loan that such Bank does not intend to make
available to the Managing Agent such Bank's portion of the total amount of such
Loan, the Managing Agent may assume that such Bank has made such amount
available to the Managing Agent on the date of the Loan and the Managing Agent
may, in reliance upon such assumption, make available to Borrowers a
corresponding amount. If the Managing Agent has made funds available to
Borrowers based on such assumption and such corresponding amount is not in fact
made available to the Managing Agent by such Bank, the Managing Agent shall be
entitled to recover such corresponding amount on demand from such Bank. If such
Bank does not pay such corresponding amount forthwith upon the Managing Agent's
demand therefor, the Managing Agent promptly shall notify Borrowers and
Borrowers shall pay such corresponding amount to the Managing Agent. The
Managing Agent also shall be entitled to recover from such Bank interest on such
corresponding amount in respect of each day from the date such corresponding
amount was made available by the Managing Agent to Borrowers to the date such
corresponding amount is recovered by the Managing Agent, at a rate per annum
equal to the daily Federal Funds Rate. Nothing herein shall be deemed to relieve
any Bank from its obligation to fulfill its share of the Commitments or to
prejudice any rights which the Managing Agent or Borrowers may have against any
Bank as a result of any default by such Bank hereunder.

                                     -40-

<PAGE>

                  2.10     EXTENSION OF MATURITY DATE.

                           (a) The Maturity Date may be extended for a one-year
         period at the request of Borrowers and with the written consent of all
         of the Banks (which may be withheld in the sole and absolute discretion
         of each Bank) pursuant to this Section. Not later than December 11,
         2002, or by December 11 in the subsequent year as provided in Section
         2.10(D), and provided that Borrowers are then in compliance with
         Section 7.1, Borrowers may deliver to the Managing Agent and the Banks
         a written request for a one year extension of the Maturity Date
         together with a Certificate of a Responsible Official signed by a
         Senior Officer on behalf of Borrowers stating that the representations
         and warranties contained in ARTICLE 4 (OTHER THAN (i) representations
         and warranties which expressly speak as of a particular date or are no
         longer true and correct as a result of a change which is not a
         violation of this Agreement and (ii) as otherwise disclosed by
         Borrowers and approved in writing by the Requisite Banks) will be true
         and correct in all material respects, both immediately before and after
         giving effect to such request, as though such representations and
         warranties were made on and as of that date. Each Bank shall, on or
         prior to the date that is thirty (30) days after receipt of such
         written request, notify in writing the Managing Agent whether (in its
         sole and absolute discretion) it consents to such request and the
         Managing Agent shall, after receiving the notifications from all of the
         Banks or the expiration of such period, whichever is earlier, notify
         Borrowers and the Banks of the results thereof. If all of the Banks
         have consented, then the Maturity Date shall be automatically extended
         for one year upon payment by Borrowers to the Managing Agent of the
         extension fee pursuant to Section 3.6.

                           (b) If Banks holding 80% or more of the Commitments
         (the "Approving Banks") consent to the request for extension, but one
         or more Banks (the "Disapproving Banks") notifies the Managing Agent
         that it will not consent to the request for extension (or fails to
         notify the Managing Agent in writing of its consent to the extension by
         the date that is thirty (30) days after receipt of such written
         request), Borrowers may at their option reduce the Commitments at the
         then scheduled Maturity Date by an amount equal to the amount thereof
         held by the Disapproving Banks (each of which shall be paid the
         aggregate outstanding principal amount under their respective Note and
         all accrued interest and fees and other amounts payable hereunder),
         adjust the Pro-Rata Shares (but not the amount) of the reduced
         Commitments of the Approving Banks to correspond with the reduced
         Commitments and, subject to the further written consent of all the
         Approving Banks, the Maturity Date shall automatically be extended for
         one year upon payment by Borrowers to the Managing Agent of the
         extension fee pursuant to Section 3.6. The Borrowers shall notify the
         Managing Agent of their intention to exercise their option pursuant to
         this Section 2.10(B) by delivery of written notice to the Managing
         Agent of their exercise of such option not less than fifteen (15) days
         prior to the then scheduled Maturity Date.

                           (c) If Banks holding 80% or more of the Commitments
         do not consent to the request for extension, Borrowers may, within the
         thirty (30) day period

                                     -41-
<PAGE>

         following expiration of the aforesaid thirty (30) day period (but in
         any event prior to the then scheduled Maturity Date), cause the
         Disapproving Banks to assign their Pro Rata Shares of the
         Commitments to an Eligible Assignee acceptable to Borrowers and the
         Managing Agent pursuant to Section 11.24. The Managing Agent shall
         reserve the right to approve the allocation of Commitments; it being
         acknowledged that the Managing Agent shall not be required to
         approve an assignment which results in a Bank having a greater Pro
         Rata Share of the Commitments than that of the Managing Agent. Upon
         completion of such assignments, the request for extension shall be
         renewed and, subject to the written consent of all of the Banks
         (INCLUDING the new Banks), the Maturity Date shall automatically be
         extended for one year upon payment by Borrowers to the Managing
         Agent of the extension fee pursuant to Section 3.6.

                           (d) If a request for extension is approved as
         provided in this Section 2.10, the Borrowers shall retain the right to
         request one (1) additional one (1) year extension in the manner
         provided in this Section 2.10.

                  2.11 UNENCUMBERED ASSET POOL. Borrowers may at any time add a
Qualified Unencumbered Asset Pool Property to the Unencumbered Asset Pool
pursuant to this Section 2.11, which process shall be initiated by delivery by
Borrowers to the Managing Agent (which the Managing Agent shall promptly
distribute to the Banks) of a complete description of the Qualified Unencumbered
Asset Pool Property, the most recent year operating income statement related
thereto (to the extent available), cash flow projections for such property for
at least the next twelve (12) months, a description of all tenants and leases
with respect thereto, a certification of a Senior Officer of the Borrowers that
Parent has obtained a current written report prepared by a qualified independent
expert with respect to Hazardous Materials related thereto which discloses that
such property would not be in violation of the representations and covenants of
this Agreement and other written materials reasonably requested by any Bank.
Borrowers may remove a Revenue-Producing Property from the Unencumbered Asset
Pool by delivery to the Managing Agent (for distribution to the Banks) of a
written notice to that effect, accompanied by a Certificate of a Senior Officer
of Borrowers setting forth the revised Borrowing Base as of the most
recently-ended Fiscal Quarter resulting from such removal, which removal shall
be effective on the third (3rd) day after the date of such notice.

                  2.12 REPRESENTATIVE OF BORROWERS. Each of Borrowers hereby
appoints Parent as its agent, attorney-in-fact and representative for the
purpose of making Requests for Loans, Competitive Bid Requests, acceptance of
Competitive Bids, Letter of Credit Requests, payment and prepayment of Loans and
Competitive Advances, the giving and receipt of notices by and to Borrowers
under this Agreement and all other purposes incidental to any of the foregoing.
Each of Borrowers agrees that any action taken by Parent as the agent,
attorney-in-fact and representative of such Borrowers shall be binding on such
Borrowers to the same extent as if directly taken by such Borrower.

                                     -42-

<PAGE>

                                                    Article 3
                                                PAYMENTS AND FEES

                  3.1  PRINCIPAL AND INTEREST.

                           (a) Interest shall be payable on the outstanding
         daily unpaid principal amount of each Advance from the date thereof
         until payment in full is made and shall accrue and be payable at the
         rates set forth or provided for herein before and after Default, before
         and after maturity, before and after judgment, and before and after the
         commencement of any proceeding under any Debtor Relief Law, with
         interest on overdue interest at the Default Rate to the fullest extent
         permitted by applicable Laws.

                           (b) Interest accrued on each Alternate Base Rate Loan
         shall be due and payable on each Monthly Payment Date. EXCEPT as
         otherwise provided in Section 3.9, the unpaid principal amount of any
         Alternate Base Rate Loan shall bear interest at a fluctuating rate per
         annum equal to the Alternate Base Rate PLUS the Applicable Alternate
         Base Rate Margin. Each change in the interest rate under this Section
         3.1(b) due to a change in the Alternate Base Rate shall take effect
         simultaneously with the corresponding change in the Alternate Base
         Rate.

                           (c) Interest accrued on each LIBOR Rate Loan shall be
         due and payable on each Monthly Payment Date. EXCEPT as otherwise
         provided in Section 3.9, the unpaid principal amount of any LIBOR Rate
         Loan shall bear interest at a rate per annum equal to the LIBOR Rate
         for that LIBOR Rate Loan PLUS the Applicable LIBOR Rate Margin.

                           (d) Interest accrued on each Fixed Rate Loan shall be
         due and payable on each Monthly Payment Date. EXCEPT as otherwise
         provided in Section 3.9, the unpaid principal amount of any Fixed Rate
         Loan shall bear interest at the rate per annum quoted by the Bank
         making such Loan in accordance with Section 2.4.

                           (e) In the event that any additional interest becomes
         due and payable for any period with respect to a Loan as a result of
         the Pricing Level being determined based on the Leverage Ratio or any
         change in the Leverage Ratio, and the interest for such period has
         previously been paid by the Borrowers, the Borrowers shall pay to the
         Managing Agent for the account of the Banks the amount of such increase
         within ten (10) days of demand.

                           (f) If not sooner paid, the principal Indebtedness
         evidenced by the Notes shall be payable as follows:

                                    (i) the amount, if any, by which the
                  principal Indebtedness evidenced by the Line Notes (after
                  giving effect to all amounts requested thereunder) PLUS the
                  Letter of Credit Exposure PLUS the aggregate amount of

                                      43
<PAGE>
                  Swing Loans outstanding, at any time exceeds the then
                  applicable Line Commitment shall be payable immediately;

                                    (ii) the amount, if any, by which the
                  principal Indebtedness evidenced by the Notes (after giving
                  effect to all amounts requested thereunder) PLUS the Letter of
                  Credit Exposure PLUS the aggregate amount of Swing Loans
                  outstanding, at any time exceeds the Line Commitment shall be
                  payable immediately;

                                    (iii) the amount, if any, by which the
                  principal Indebtedness evidenced by the Notes (after giving
                  effect to all amounts requested thereunder) PLUS the Letter of
                  Credit Exposure PLUS the aggregate amount of Swing Loans
                  outstanding, at any time exceeds the Borrowing Base shall be
                  payable immediately;

                                    (iv) the principal Indebtedness evidenced by
                  each Competitive Advance Note shall be payable on the maturity
                  date of each Competitive Advance in the amount of such
                  Competitive Advance; and

                                    (v) the principal Indebtedness evidenced by
                  the Notes shall in any event be payable on the Maturity Date.

                           (g) Except as otherwise provided in Section 2.4(o),
         the Notes may, at any time and from time to time, voluntarily be paid
         or prepaid in whole or in part without premium or penalty, EXCEPT that
         with respect to any voluntary prepayment under this Section, (i) any
         partial prepayment shall be not less than $1,000,000, (ii) the Managing
         Agent shall have received written notice of any prepayment by 12:00
         noon Massachusetts time on the date of prepayment (which must be a
         Banking Day) in the case of an Alternate Base Rate Loan, and, in the
         case of a LIBOR Rate Loan, three (3) Banking Days before the date of
         prepayment, which notice shall identify the date and amount of the
         prepayment and the Loan(s) being prepaid, (iii) each prepayment of
         principal on any Loan shall be accompanied by payment of interest
         accrued to the date of payment on the amount of principal paid, (iv)
         any payment or prepayment of all or any part of any LIBOR Rate Loan on
         a day other than the last day of the applicable Interest Period shall
         be subject to Section 3.8(e) and (v) upon any partial prepayment of a
         LIBOR Rate Loan that reduces it below $2,000,000, the remaining portion
         thereof shall automatically convert to an Alternate Base Rate Loan.
         Notwithstanding the foregoing, no prior notice shall be required for
         the prepayment of any Swing Loan.

                           (h) All of the Borrowers' interest in the gross
         proceeds of each and every sale or refinancing of real estate assets of
         the Borrowers and their respective Subsidiaries (whether held directly
         or indirectly) or of a sale of a Borrower as permitted by Section 6.18,
         less all reasonable costs, expenses and commissions paid to unrelated
         parties and less any Indebtedness (other than the Obligations) secured
         by such asset to be satisfied as a part of such sale or refinance,
         shall be promptly paid by

                                      44
<PAGE>

         the Borrowers to the Managing Agent for the account of the
         Banks as a prepayment of the Loans to the extent of the outstanding
         balance of the Loans (provided that such amounts may be
         deposited with Managing Agent as security for the Obligations and
         applied against the Obligations upon the expiration of the next
         succeeding LIBOR Periods, if applicable, following the occurrence of
         such event requiring such prepayment, to minimize the payment of costs
         pursuant to Section 3.8(e)). The Borrowers shall upon the request of
         the Managing Agent enter into such further instruments (including
         financing statements) to further evidence or perfect such security
         interest. In the event any amounts are deposited pursuant to this
         paragraph, the Borrowers may upon the approval of the Managing Agent
         obtain a release of amounts from such collateral account for such
         purposes as proceeds of the Loans may be used hereunder provided that
         the Borrowers would otherwise be entitled to an Advance under this
         Agreement. The Banks may elect at any time to apply any such deposited
         amounts as a prepayment of the Loan, provided that in connection with
         such application no costs pursuant to Section 3.8(e) shall be charged
         to Borrowers.

                           (i) Unless otherwise approved by the Managing Agent,
         the Borrowers shall cause all gross proceeds of each and every Debt
         Offering and Equity Offering, less all reasonable costs, fees,
         expenses, underwriting commissions, fees and discounts incurred in
         connection therewith, to be paid by the Borrowers to the Managing Agent
         for the account of the Banks as a prepayment of the Loans within ten
         (10) days of the date of such offering to the extent of the outstanding
         balance of the Loans (provided that such amounts may be deposited with
         Managing Agent as security for the Obligations and applied against the
         Obligations upon the expiration of the next succeeding LIBOR Periods,
         if applicable, following the occurrence of such event requiring such
         prepayment, to minimize the payment of costs pursuant to Section
         3.8(e)). The Borrowers shall upon the request of the Managing Agent
         enter into such further instruments (including financing statements) to
         further evidence or perfect such security interest. In the event any
         amounts are deposited pursuant to this paragraph, the Borrowers may
         upon the approval of the Managing Agent obtain a release of amounts
         from such collateral account for such purposes as proceeds of the Loans
         may be used hereunder provided that the Borrowers would otherwise be
         entitled to an Advance under this Agreement. The Banks may elect at any
         time to apply any such deposited amounts as a prepayment of the Loan,
         provided that in connection with such application no costs pursuant to
         Section 3.8(e) shall be charged to Borrowers.

                  3.2 CLOSING FEE. On the Closing Date, Borrowers shall pay to
the Managing Agent the balance of the closing fee as heretofore agreed upon
pursuant to the Agreement Regarding Fees between Borrowers and the Managing
Agent. The closing fee paid to the Managing Agent is solely for its own account
and is nonrefundable. Managing Agent shall pay to the other Banks on the Closing
Date a closing fee in accordance with their separate written agreement.

                  3.3  [INTENTIONALLY OMITTED.].

                                      45
<PAGE>

                  3.4 COMMITMENT FEE. From the Closing Date through the Maturity
Date, Borrowers shall pay to the Managing Agent, for the ratable accounts of the
Banks pro rata according to their Pro Rata Share of the Commitments, a
commitment fee equal to one fourth of one percent (0.25%) on the average daily
amount by which the Line Commitment exceeds the aggregate daily principal
Indebtedness evidenced by the Line Notes and the aggregate amount of outstanding
Letters of Credit. The commitment fee shall be payable quarterly in arrears on
each Quarterly Payment Date, on any earlier date on which the Line Commitment
shall be reduced or shall terminate as provided in Section 2.7, and on the
Maturity Date.

                  3.5 AGENCY FEE. Borrowers shall pay to the Managing Agent an
agency fee in such amounts and at such times as heretofore agreed pursuant to
the Agreement Regarding Fees between Borrowers and the Managing Agent. The
agency fee paid to the Managing Agent is solely for its own account and is
nonrefundable.

                  3.6 EXTENSION FEES. Borrowers shall pay to the Managing Agent
for the account of the Banks an extension fee concurrently with each extension
of the Maturity Date pursuant to Section 2.10 in an amount to be determined by
the parties at the time each such extension is requested.

                  3.7 INCREASED COMMITMENT COSTS. If any Bank shall determine in
good faith that the introduction after the Closing Date of any applicable law,
rule, regulation or guideline regarding capital adequacy, or any change therein
or any change in the interpretation or administration thereof by any central
bank or other Governmental Agency charged with the interpretation or
administration thereof, or compliance by such Bank (or its LIBOR Lending Office)
or any corporation controlling such Bank, with any request, guideline or
directive regarding capital adequacy (whether or not having the force of Law) of
any such central bank or other authority not imposed as a result of such Bank's
or such corporation's failure to comply with any other Laws, affects or would
affect the amount of capital required or expected to be maintained by such Bank
or any corporation controlling such Bank and (taking into consideration such
Bank's or such corporation's policies with respect to capital adequacy and such
Bank's desired return on capital) determines in good faith that the amount of
such capital is increased, or the rate of return on capital is reduced, as a
consequence of its obligations under this Agreement, then, within ten (10)
Banking Days after demand of such Bank, Borrowers shall pay to such Bank, from
time to time as specified in good faith by such Bank, additional amounts
sufficient to compensate such Bank in light of such circumstances, to the extent
reasonably allocable to such obligations under this Agreement, PROVIDED that
Borrowers shall not be obligated to pay any such amount which arose prior to the
date which is ninety (90) days preceding the date of such demand or is
attributable to periods prior to the date which is ninety (90) days preceding
the date of such demand. Each Bank's determination of such amounts shall be
conclusive in the absence of manifest error.

                  3.8  LIBOR COSTS AND RELATED MATTERS.

                           (a) In the event that any Governmental Agency imposes
         on any Bank any reserve or comparable requirement (INCLUDING any
         emergency, supplemental

                                      46
<PAGE>

         or other reserve) with respect to the LIBOR Obligations of that
         Bank, Borrowers shall pay that Bank within five (5) Banking Days
         after demand all amounts necessary to compensate such Bank
         (determined as though such Bank's LIBOR Lending Office had funded 100%
         of its LIBOR Rate Advance in the London interbank market) in respect of
         the imposition of such reserve requirements on each LIBOR Rate Advance
         made by such Bank (PROVIDED, that Borrowers shall not be obligated to
         pay any such amount which arose prior to the date which is ninety (90)
         days preceding the date of such demand or is attributable to periods
         prior to the date which is ninety (90) days preceding the date of such
         demand). The Bank's determination of such amount shall be conclusive in
         the absence of manifest error.

                           (b) If, after the date hereof, the existence or
         occurrence of any Special LIBOR Circumstance:

                                    (1) shall subject any Bank or its LIBOR
                  Lending Office to any tax, duty or other charge or cost with
                  respect to any LIBOR Rate Advance, any of its Notes evidencing
                  LIBOR Rate Loans or its obligation to make LIBOR Rate
                  Advances, or shall change the basis of taxation of payments to
                  any Bank attributable to the principal of or interest on any
                  LIBOR Rate Advance or any other amounts due under this
                  Agreement in respect of any LIBOR Rate Advance, any of its
                  Notes evidencing LIBOR Rate Loans or its obligation to make
                  LIBOR Rate Advances (PROVIDED, that Borrowers shall not be
                  obligated to pay any such amount which arose prior to the date
                  which is ninety (90) days preceding the date of such demand or
                  is attributable to periods prior to the date which is ninety
                  (90) days preceding the date of such demand), EXCLUDING (i)
                  taxes imposed on or measured in whole or in part by its
                  overall net income by (A) any jurisdiction (or political
                  subdivision thereof) in which it is organized or maintains its
                  principal office or LIBOR Lending Office or (B) any
                  jurisdiction (or political subdivision thereof) in which it is
                  "doing business" and (ii) any withholding taxes or other taxes
                  based on gross income imposed by the United States of America
                  for any period with respect to which it has failed to provide
                  Borrowers with the appropriate form or forms required by
                  Section 11.21, to the extent such forms are then required by
                  applicable Laws;

                                    (2) shall impose, modify or deem applicable
                  any reserve not applicable or deemed applicable on the date
                  hereof (INCLUDING any reserve imposed by the Board of
                  Governors of the Federal Reserve System, special deposit,
                  capital or similar requirements against assets of, deposits
                  with or for the account of, or credit extended by, any Bank or
                  its LIBOR Lending Office); or

                                    (3) shall impose on any Bank or its LIBOR
                  Lending Office or the London interbank market any other
                  condition affecting any LIBOR Rate Advance, any of its Notes
                  evidencing LIBOR Rate Loans, its obligation to

                                      47
<PAGE>

                  make LIBOR Rate Advances or this Agreement, or shall
                  otherwise affect any of the same;

         and the result of any of the foregoing, as determined in good faith by
         such Bank, increases the cost to such Bank or its LIBOR Lending Office
         of making or maintaining any LIBOR Rate Advance or in respect of any
         LIBOR Rate Advance, any of its Notes evidencing LIBOR Rate Loans or its
         obligation to make LIBOR Rate Advances or reduces the amount of any sum
         received or receivable by such Bank or its LIBOR Lending Office with
         respect to any LIBOR Rate Advance, any of its Notes evidencing LIBOR
         Rate Loans or its obligation to make LIBOR Rate Advances (assuming such
         Bank's LIBOR Lending Office had funded 100% of its LIBOR Rate Advance
         in the London interbank market), then, within five (5) Banking Days
         after demand by such Bank (with a copy to the Managing Agent),
         Borrowers shall pay to such Bank such additional amount or amounts as
         will compensate such Bank for such increased cost or reduction
         (determined as though such Bank's LIBOR Lending Office had funded 100%
         of its LIBOR Rate Advance in the London interbank market). A statement
         of any Bank claiming compensation under this subsection shall be
         conclusive in the absence of manifest error.

                           (c) If, after the date hereof, the existence or
         occurrence of any Special LIBOR Circumstance shall, in the good faith
         opinion of any Bank, make it unlawful or impossible for such Bank or
         its LIBOR Lending Office to make, maintain or fund its portion of any
         LIBOR Rate Loan, or materially restrict the authority of such Bank to
         purchase or sell, or to take deposits of, Dollars in the London
         interbank market, or to determine or charge interest rates based upon
         the LIBOR Rate, and such Bank shall so notify the Managing Agent, then
         such Bank's obligation to make LIBOR Rate Advances shall be suspended
         for the duration of such illegality or impossibility and the Managing
         Agent forthwith shall give notice thereof to the other Banks and
         Borrowers. Upon receipt of such notice, the outstanding principal
         amount of such Bank's LIBOR Rate Advances, together with accrued
         interest thereon, automatically shall be converted to Alternate Base
         Rate Advances on either (1) the last day of the LIBOR Period(s)
         applicable to such LIBOR Rate Advances if such Bank may lawfully
         continue to maintain and fund such LIBOR Rate Advances to such day(s)
         or (2) immediately if such Bank may not lawfully continue to fund and
         maintain such LIBOR Rate Advances to such day(s), PROVIDED that in such
         event the conversion shall not be subject to payment of a prepayment
         fee under Section 3.8(e). Each Bank agrees to endeavor promptly to
         notify Borrowers of any event of which it has actual knowledge,
         occurring after the Closing Date, which will cause that Bank to notify
         the Managing Agent under this Section, and agrees to designate a
         different LIBOR Lending Office if such designation will avoid the need
         for such notice and will not, in the good faith judgment of such Bank,
         otherwise be materially disadvantageous to such Bank. In the event that
         any Bank is unable, for the reasons set forth above, to make, maintain
         or fund its portion of any LIBOR Rate Loan, such Bank shall fund such
         amount as an Alternate Base Rate Advance for the same period of time,
         and such amount shall be treated in all respects as an Alternate Base
         Rate Advance. Any Bank

                                      48
<PAGE>

         whose obligation to make LIBOR Rate Advances has been suspended
         under this Section shall promptly notify the Managing Agent and
         Borrowers of the cessation of the Special LIBOR Circumstance
         which gave rise to such suspension.

                           (d) If, with respect to any proposed LIBOR Rate Loan:

                                    (1) the Managing Agent reasonably determines
                  that, by reason of circumstances affecting the London
                  interbank market generally that are beyond the reasonable
                  control of the Banks, deposits in Dollars (in the applicable
                  amounts) are not being offered to any Bank in the London
                  interbank market for the applicable LIBOR Period; or

                                    (2) the Requisite Banks advise the Managing
                  Agent that the LIBOR Rate as determined by the Managing Agent
                  (i) does not represent the effective pricing to such Banks for
                  deposits in Dollars in the London interbank market in the
                  relevant amount for the applicable LIBOR Period, or (ii) will
                  not adequately and fairly reflect the cost to such Banks of
                  making the applicable LIBOR Rate Advances;

         then the Managing Agent forthwith shall give notice thereof to
         Borrowers and the Banks, whereupon until the Managing Agent notifies
         Borrowers that the circumstances giving rise to such suspension no
         longer exist, the obligation of the Banks to make any future LIBOR Rate
         Advances shall be suspended.

                           (e) Upon payment or prepayment of any LIBOR Rate
         Advance (OTHER THAN as the result of a conversion required under
         Section 3.8(c) or as provided in the last sentence of each of Section
         3.1(h) and 3.1(i) or as the result of a conversion of a Swing Loan to a
         Line Loan as provided in Section 2.5(d)) or a Fixed Rate Loan on a day
         other than the last day in the applicable LIBOR Period or the maturity
         of such Fixed Rate Loan, as applicable, (whether voluntarily,
         involuntarily, by reason of acceleration, or otherwise), or upon the
         failure of Borrowers (for a reason other than the breach by a Bank of
         its obligation pursuant to Section 2.1(a) to make an Advance) to borrow
         on the date or in the amount specified for a LIBOR Rate Loan in any
         Request for Loan or for a Fixed Rate Loan, Borrowers shall pay to the
         appropriate Bank within ten (10) Banking Days after demand a prepayment
         fee or failure to borrow fee, as the case may be (determined with
         respect to LIBOR Rate Loans as though 100% of the LIBOR Rate Advance
         had been funded in the London interbank market) equal to the SUM of:

                                    (1)     $250; PLUS

                                    (2) with respect to LIBOR Rate Loans, the
                  amount, if any, by which (i) the additional interest that
                  would have accrued on the amount prepaid or not borrowed at
                  the LIBOR Rate PLUS the Applicable LIBOR Rate Margin if that
                  amount had remained or been outstanding through the last day
                  of

                                      49
<PAGE>

                  the applicable Interest Period EXCEEDS (ii) the interest
                  that the Bank could recover by placing such amount on deposit
                  in the London interbank market for a period beginning on the
                  date of the prepayment or failure to borrow and ending on the
                  last day of the applicable Interest Period (or, if no deposit
                  rate quotation is available for such period, for the most
                  comparable period for which a deposit rate quotation may be
                  obtained); or with respect to Fixed Rate Loans, the amount, if
                  any, by which (i) the additional interest that would have
                  accrued on the amount prepaid or not borrowed at the rate
                  applicable to such Fixed Rate Loan if that amount had remained
                  or been outstanding through the last day of the applicable
                  Advance EXCEEDS (ii) the yield that the Bank could recover by
                  purchasing a debt security customarily issued by the Treasury
                  of the United States of America having a maturity date ending
                  on the last day of the term of such Fixed Rate Loan (or, if no
                  such security is available for such period, for the most
                  comparable period for which such security may be obtained);
                  PLUS

                                    (3) all out-of-pocket expenses incurred by
                  the Bank reasonably attributable to such payment, prepayment
                  or failure to borrow.

         Each Bank's determination of the amount of any prepayment fee payable
         under this Section shall be conclusive in the absence of manifest
         error.

                           (f) Each Bank agrees to endeavor promptly to notify
         Borrowers of any event of which it has actual knowledge, occurring
         after the Closing Date, which will entitle such Bank to compensation
         pursuant to clause (a) or clause (b) of this Section 3.8, and agrees to
         designate a different LIBOR Lending Office if such designation will
         avoid the need for or reduce the amount of such compensation and will
         not, in the good faith judgment of such Bank, otherwise be materially
         disadvantageous to such Bank. Any request for compensation by a Bank
         under this Section 3.8 shall set forth the basis upon which it has been
         determined that such an amount is due from Borrowers, a calculation of
         the amount due, and a certification that the corresponding costs have
         been incurred by the Bank.

                  3.9 LATE PAYMENTS. If any installment of principal or interest
or any fee or cost or other amount payable under any Loan Document to the
Managing Agent or any Bank is not paid when due, it shall thereafter bear
interest at a fluctuating interest rate per annum (the "Default Rate") at all
times equal to the SUM OF the Alternate Base Rate PLUS the Applicable Alternate
Base Rate Margin PLUS 2%, to the fullest extent permitted by applicable Laws.
Accrued and unpaid interest on past due amounts (INCLUDING, without limitation,
interest on past due interest) shall be compounded monthly, on the last day of
each calendar month, to the fullest extent permitted by applicable Laws. In
addition, the Borrowers shall pay a late charge equal to three percent (3%) of
any amount of interest and/or principal payable on the Loans or any other
amounts payable hereunder or under the other Loan Documents which is not paid
within ten (10) days of the date when due.

                                      50
<PAGE>

                  3.10 COMPUTATION OF INTEREST AND FEES. Computation of interest
and fees under this Agreement shall be calculated on the basis of a year of 360
days and the actual number of days elapsed. Interest shall accrue on each Loan
for the day on which the Loan is made; interest shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid. Any
Loan that is repaid on the same day on which it is made shall bear interest for
one day. Notwithstanding anything in this Agreement to the contrary, interest in
excess of the maximum amount permitted by applicable Laws shall not accrue or be
payable hereunder or under the Notes, and any amount paid as interest hereunder
or under the Notes which would otherwise be in excess of such maximum permitted
amount shall instead be treated as a payment of principal.

                  3.11 NON-BANKING DAYS. If any payment to be made by Borrowers
or any other Party under any Loan Document shall come due on a day other than a
Banking Day, payment shall instead be considered due on the next succeeding
Banking Day, unless, in the case of a payment relating to a LIBOR Rate Loan,
such next succeeding Banking Day is in the next calendar month, in which case
such payment shall be made on the next preceding Bank Day, and the extension of
time shall be reflected in computing interest and fees.

                  3.12  MANNER AND TREATMENT OF PAYMENTS.

                           (a) Each payment hereunder (EXCEPT payments pursuant
         to Sections 3.7, 3.8, 11.3, 11.11 and 11.22) or on the Notes or under
         any other Loan Document shall be made to the Managing Agent at the
         Managing Agent's Office for the account of each of the Banks or the
         Managing Agent, as the case may be, in immediately available funds not
         later than 1:00 p.m. Massachusetts time, on the day of payment (which
         must be a Banking Day). All payments received after such time, on any
         Banking Day, shall be deemed received on the next succeeding Banking
         Day. The amount of all payments received by the Managing Agent for the
         account of each Bank shall be immediately paid by the Managing Agent to
         the applicable Bank in immediately available funds and, if such payment
         was received by the Managing Agent by 1:00 p.m., Massachusetts time, on
         a Banking Day and not so made available to the account of a Bank on
         that Banking Day, the Managing Agent shall reimburse that Bank for the
         cost to such Bank of funding the amount of such payment at the Federal
         Funds Rate. All payments shall be made in lawful money of the United
         States of America.

                           (b) Each payment or prepayment on account of any Loan
         shall be applied pro rata according to the outstanding Advances made by
         each Bank comprising such Loan.

                           (c) Each Bank shall use its best efforts to keep a
         record (in writing or by an electronic data entry system) of Advances
         made by it and payments received by it with respect to each of its
         Notes and, subject to Section 10.6(g), such record shall, as against
         Borrowers, be presumptive evidence of the amounts owing.
         Notwithstanding the foregoing sentence, the failure by any Bank to keep
         such a record shall not affect Borrowers' obligation to pay the
         Obligations.

                                      51
<PAGE>

                           (d) Each payment of any amount payable by Borrowers
         or any other Party under this Agreement or any other Loan Document
         shall be made without setoff or counterclaim and free and clear of, and
         without reduction by reason of, any taxes, assessments or other charges
         imposed by any Governmental Agency, central bank or comparable
         authority, EXCLUDING (i) taxes imposed on or measured in whole or in
         part by any Bank's overall net income by (A) any jurisdiction (or
         political subdivision thereof) in which such Bank is organized or
         maintains its principal office or LIBOR Lending Office or (B) any
         jurisdiction (or political subdivision thereof) in which such Bank is
         "doing business" and (ii) any withholding taxes or other taxes based on
         gross income imposed by the United States of America for any period
         with respect to which any Bank has failed to provide Borrowers with the
         appropriate form or forms required by Section 11.21, to the extent such
         forms are then required by applicable Laws (all such non-excluded
         taxes, assessments or other charges being hereinafter referred to as
         "Taxes"). To the extent that Borrowers are obligated by applicable Laws
         to make any deduction or withholding on account of Taxes from any
         amount payable to any Bank under this Agreement, Borrowers shall (i)
         make such deduction or withholding and pay the same to the relevant
         Governmental Agency and (ii) pay such additional amount to that Bank as
         is necessary to result in that Bank's receiving a net after-Tax amount
         equal to the amount to which that Bank would have been entitled under
         this Agreement absent such deduction or withholding. If and when
         receipt of such payment results in an excess payment or credit to that
         Bank on account of such Taxes, that Bank shall promptly refund such
         excess to Borrowers.

                  3.13 FUNDING SOURCES. Nothing in this Agreement shall be
deemed to obligate any Bank to obtain the funds for any Loan or Advance in any
particular place or manner or to constitute a representation by any Bank that it
has obtained or will obtain the funds for any Loan or Advance in any particular
place or manner.

                  3.14 FAILURE TO CHARGE NOT SUBSEQUENT WAIVER. Any decision by
the Managing Agent or any Bank not to require payment of any interest (INCLUDING
interest arising under Section 3.9), fee, cost or other amount payable under any
Loan Document, or to calculate any amount payable by a particular method, on any
occasion shall in no way limit or be deemed a waiver of the Managing Agent's or
such Bank's right to require full payment of any interest (INCLUDING interest
arising under Section 3.9), fee, cost or other amount payable under any Loan
Document, or to calculate an amount payable by another method that is not
inconsistent with this Agreement, on any other or subsequent occasion.

                  3.15 MANAGING AGENT'S RIGHT TO ASSUME PAYMENTS WILL BE MADE BY
BORROWERS. Unless the Managing Agent shall have been notified by Borrowers prior
to the date on which any payment to be made by Borrowers hereunder is due that
Borrowers do not intend to remit such payment, the Managing Agent may, in its
discretion, assume that Borrowers have remitted such payment when so due and the
Managing Agent may, in its discretion and in reliance upon such assumption, make
available to each Bank on such payment date an amount equal to such Bank's share
of such assumed payment. If Borrowers have not in fact remitted such payment to
the Managing Agent, each Bank shall forthwith on demand repay to the Managing
Agent the amount of such assumed payment made available to

                                      52

<PAGE>

such Bank, together with interest thereon in respect of each day from and
including the date such amount was made available by the Managing Agent to
such Bank to the date such amount is repaid to the Managing Agent at the
Federal Funds Rate.

                  3.16 FEE DETERMINATION DETAIL. The Managing Agent, and any
Bank, shall provide reasonable detail to Borrowers regarding the manner in which
the amount of any payment to the Managing Agent and the Banks, or that Bank,
under ARTICLE 3 has been determined, concurrently with demand for such payment.

                  3.17 SURVIVABILITY. All of Borrowers' obligations under
Sections 3.7 and 3.8 shall survive for the ninety (90) day period following the
date on which the Commitments are terminated and all Loans hereunder are fully
paid, and Borrowers shall remain obligated thereunder for all claims under such
Sections made by any Bank to Borrowers prior to the expiration of such period.

                                    Article 4
                         REPRESENTATIONS AND WARRANTIES

               Borrowers represent and warrant to the Banks that:

                  4.1 EXISTENCE AND QUALIFICATION; POWER; COMPLIANCE WITH LAWS.
Parent is a corporation duly formed, validly existing and in good standing under
the Laws of Maryland and each other Borrower is a corporation, limited
partnership or limited liability company duly formed, validly existing and in
good standing under the Laws of its state of formation. Each of Borrowers is
duly qualified or registered to transact business and is in good standing in
each other jurisdiction in which the conduct of its business or the ownership or
leasing of its Properties makes such qualification or registration necessary,
EXCEPT where the failure so to qualify or register and to be in good standing
would not constitute a Material Adverse Effect. Each of Borrowers has all
requisite power and authority to conduct its business, to own and lease its
Properties and to execute and deliver each Loan Document to which it is a Party
and to perform its Obligations. All outstanding shares of capital stock of
Parent are duly authorized, validly issued, fully paid and non-assessable, and
no holder thereof has any enforceable right of rescission under any applicable
state or federal securities Laws. Each of Borrowers is in compliance with all
Laws and other legal requirements applicable to its business, has obtained all
authorizations, consents, approvals, orders, licenses and permits from, and has
accomplished all filings, registrations and qualifications with, or obtained
exemptions from any of the foregoing from, any Governmental Agency that are
necessary for the transaction of its business, EXCEPT where the failure so to
comply, obtain authorizations, etc., file, register, qualify or obtain
exemptions does not constitute a Material Adverse Effect. Parent is a "real
estate investment trust" within the meaning of Section 856 of the Code, and is
subject to federal income taxation as a real estate investment trust pursuant
to Sections 856-860 of the Code.

                  4.2 AUTHORITY; COMPLIANCE WITH OTHER AGREEMENTS AND
INSTRUMENTS AND GOVERNMENT REGULATIONS. The execution, delivery and performance
by each of Borrowers of

                                      53
<PAGE>

the Loan Documents to which it is a Party have been duly authorized by all
necessary corporate, partnership or limited liability company action, as
applicable, and do not and will not:

                           (a) Require any consent or approval not heretofore
         obtained of any partner, director, stockholder, security holder or
         creditor of Borrowers;

                           (b) Violate or conflict with any provision of
         Borrowers' charter, articles of incorporation, bylaws or other
         organizational agreements, as applicable;

                           (c) Result in or require the creation or imposition
         of any Lien or Right of Others upon or with respect to any Property now
         owned or leased or hereafter acquired by Borrowers;

                           (d) Violate any Requirement of Law applicable to
         Borrowers;

                           (e) Result in a breach of or constitute a default
         under, or cause or permit the acceleration of any obligation owed
         under, any indenture or loan or credit agreement or any other
         Contractual Obligation to which Borrowers are a party or by which
         Borrowers or any of their Property is bound or affected;

and none of Borrowers is in violation of, or default under, any Requirement of
Law or Contractual Obligation, or any indenture, loan or credit agreement
described in Section 4.2(e), in any respect that constitutes a Material Adverse
Effect.

                  4.3 NO GOVERNMENTAL APPROVALS REQUIRED. EXCEPT as previously
obtained or made, no authorization, consent, approval, order, license or permit
from, or filing, registration or qualification with, any Governmental Agency is
or will be required to authorize or permit under applicable Laws the execution,
delivery and performance by any of Borrowers of the Loan Documents to which it
is a Party.

                  4.4 SUBSIDIARIES. SCHEDULE 4.4 hereto correctly sets forth the
names, form of legal entity, number of shares of capital stock (or other
applicable unit of equity interest) issued and outstanding, and the record owner
thereof and jurisdictions of organization of all Subsidiaries of Parent. Unless
otherwise indicated in SCHEDULE 4.4, all of the outstanding shares of capital
stock, or all of the units of equity interest, as the case may be, of each such
Subsidiary are owned of record and beneficially by Parent, there are no
outstanding options, warrants or other rights to purchase capital stock of any
such Subsidiary, and all such shares or equity interests so owned are duly
authorized, validly issued, fully paid and non-assessable, and were issued in
compliance with all applicable state and federal securities and other Laws, and
are free and clear of all Liens and Rights of Others, EXCEPT for Permitted
Encumbrances and Permitted Rights of Others.

                  4.5 FINANCIAL STATEMENTS. Borrowers have furnished to the
Banks the audited consolidated financial statements of Parent and its
Subsidiaries for the Fiscal Year ended

                                      54
<PAGE>

December 31, 1998 and the unaudited consolidated financial statements for the
nine months ended September 30, 1999. The financial statements described
above fairly present in all material respects the financial condition,
results of operations and cash flows as of such date and for such period in
conformity with Generally Accepted Accounting Principles consistently applied.

     4.6  NO OTHER LIABILITIES; NO MATERIAL ADVERSE CHANGES. Borrowers do not
have any material liability or material contingent liability required under
Generally Accepted Accounting Principles to be reflected or disclosed, and
not reflected or disclosed, in the balance sheets described in Section 4.5,
OTHER THAN liabilities and contingent liabilities arising in the ordinary
course of business since the date of such financial statements. As of the
Closing Date, no circumstance or event has occurred that constitutes a
Material Adverse Effect. As of any date subsequent to the Closing Date, no
circumstance or event has occurred that constitutes a Material Adverse Effect
since the Closing Date.

     4.7  TITLE TO PROPERTY. Borrowers have valid title to the Property
(OTHER THAN assets which are the subject of a Capital Lease Obligation)
reflected in the balance sheet described in Section 4.5, OTHER THAN items of
Property or exceptions to title which are in each case immaterial to
Borrowers and Property subsequently sold or disposed of in the ordinary
course of business. Such Property is free and clear of all Liens and Rights
of Others, OTHER THAN Liens or Rights of Others described in SCHEDULE 4.7 and
Permitted Encumbrances and Permitted Rights of Others.

     4.8  INTANGIBLE ASSETS. Borrowers own, or possess the right to use to
the extent necessary in their respective businesses, all material trademarks,
trade names, copyrights, patents, patent rights, computer software, licenses
and other Intangible Assets that are used in the conduct of their businesses
as now operated, and no such Intangible Asset, to the best knowledge of
Borrowers, conflicts with the valid trademark, trade name, copyright, patent,
patent right or Intangible Asset of any other Person to the extent that such
conflict constitutes a Material Adverse Effect.

     4.9  PUBLIC UTILITY HOLDING COMPANY ACT. None of Borrowers is a "holding
company", or a "subsidiary company" of a "holding company", or an "affiliate"
of a "holding company" or of a "subsidiary company" of a "holding company",
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

     4.10  LITIGATION. EXCEPT for (a) any matter fully covered as to subject
matter and amount (subject to applicable deductibles and retentions) by
insurance for which the insurance carrier has not asserted lack of subject
matter coverage or reserved its right to do so, (b) any matter, or series of
related matters, involving a claim against Parent or any of its Subsidiaries
of less than $1,000,000, (c) matters of an administrative nature not
involving a claim or charge against Parent or any of its Subsidiaries and (d)
matters set forth in SCHEDULE 4.10, there are no actions, suits, proceedings
or investigations pending as to which Parent or any of its Subsidiaries have
been served or have received notice or, to the best

                                      -55-

<PAGE>

knowledge of Borrowers, threatened against or affecting Parent or any of its
Subsidiaries or any Property of any of them before any Governmental Agency,
mediator or arbitrator.

     4.11  BINDING OBLIGATIONS. Each of the Loan Documents to which Borrowers
are a Party will, when executed and delivered by Borrowers, constitute the
legal, valid and binding obligation of Borrowers, enforceable against
Borrowers in accordance with its terms, EXCEPT as enforcement may be limited
by Debtor Relief Laws or equitable principles relating to the granting of
specific performance and other equitable remedies as a matter of judicial
discretion.

     4.12  NO DEFAULT. No event has occurred and is continuing that is a
Default or Event of Default.

     4.13  ERISA.

          (a)  With respect to each Pension Plan:

               (i)  such Pension Plan complies in all material respects with
          ERISA and any other applicable Laws to the extent that
          noncompliance could reasonably be expected to have a Material
          Adverse Effect;

              (ii)  such Pension Plan has not incurred any "accumulated
          funding deficiency" (as defined in Section 302 of ERISA) that could
          reasonably be expected to have a Material Adverse Effect;

             (iii)  no "reportable event" (as defined in Section 4043 of
          ERISA, but EXCLUDING such events as to which the PBGC has by
          regulation waived the requirement therein contained that it be
          notified within thirty days of the occurrence of such event) has
          occurred that could reasonably be expected to have a Material
          Adverse Effect; and

              (iv)  none of Parent nor any of its Subsidiaries has engaged in
          any non-exempt "prohibited transaction" (as defined in Section 4975
          of the Code) that could reasonably be expected to have a Material
          Adverse Effect.

          (b)  None of Parent nor any of its Subsidiaries has incurred or
      expects to incur any withdrawal liability to any Multiemployer Plan that
      could reasonably be expected to have a Material Adverse Effect.

     4.14  REGULATIONS T, U AND X; INVESTMENT COMPANY ACT. No part of the
proceeds of any Loan hereunder will be used to purchase or carry, or to
extend credit to others for the purpose of purchasing or carrying, any Margin
Stock in violation of Regulations T, U and X. Neither Parent nor any of its
Subsidiaries is or is required to be registered as an "investment company"
under the Investment Company Act of 1940.

                                      -56-

<PAGE>

     4.15  DISCLOSURE. No written statement made by a Senior Officer to the
Managing Agent or any Bank in connection with this Agreement, or in
connection with any Loan, as of the date thereof contained any untrue
statement of a material fact or omitted a material fact necessary to make the
statement made not misleading in light of all the circumstances existing at
the date the statement was made.

     4.16  TAX LIABILITY. Parent and its Subsidiaries have filed all tax
returns which are required to be filed, and have paid, or made provision for
the payment of, all taxes with respect to the periods, Property or
transactions covered by said returns, or pursuant to any assessment received
by Parent or any of its Subsidiaries, EXCEPT (a) such taxes, if any, as are
being contested in good faith by appropriate proceedings and as to which
adequate reserves have been established and maintained and (b) immaterial
taxes so long as no material Property of Parent or any of its Subsidiaries is
at impending risk of being seized, levied upon or forfeited.

     4.17  HAZARDOUS MATERIALS. Except as described in SCHEDULE 4.17, as of
the Closing Date (a) none of Borrowers, nor to the best knowledge of
Borrowers, any other Person at any time has disposed of, discharged, released
or threatened the release of any Hazardous Materials on, from or under the
Real Property in violation of any Hazardous Materials Law that would
individually or in the aggregate constitute a Material Adverse Effect, (b) to
the best knowledge of Borrowers, no condition exists that violates any
Hazardous Material Law affecting any Real Property except for such violations
that would not individually or in the aggregate constitute a Material Adverse
Effect, (c) no Real Property or any portion thereof is or has been utilized
by Borrowers nor, to the best knowledge of Borrowers, any other Person as a
site for the manufacture of any Hazardous Materials, (d) to the extent that
any Hazardous Materials are used, generated or stored by Borrowers or any
other Person on any Real Property, or transported to or from such Real
Property by Borrowers or any other Person, such use, generation, storage and
transportation by Borrowers and, to the best knowledge of Borrowers, by any
other Person are in compliance with all Hazardous Materials Laws except for
such non-compliance that would not constitute a Material Adverse Effect or be
materially adverse to the interests of the Banks, and (e) no Real Property is
subject to any remediation, removal, containment or similar action conducted
by or on behalf of any Borrower or any other Person, or with respect to any
such Real Property listed on SCHEDULE 4.17 which is subject to any such
action, the estimated costs for completing such action are as set forth on
SCHEDULE 4.17.

     4.18  INITIAL POOL PROPERTIES. The Initial Pool Properties described on
SCHEDULE 4.18 are, as of the Closing Date, Qualified Unencumbered Asset Pool
Properties and comprise the initial Unencumbered Asset Pool.

     4.19  PROPERTY. All of the Borrowers' and their respective Subsidiaries'
properties are in good repair and condition, subject to ordinary wear and
tear, other than with respect to deferred maintenance existing as of the date
of acquisition of such property as permitted in this Section 4.19 and except
for such defects relating to properties other than properties in the
Unencumbered Asset Pool which would not have a Material Adverse Effect.

                                      -57-

<PAGE>

The Borrowers further have completed or caused to be completed an appropriate
investigation of the environmental condition of each such property as of the
later of (a) the date of the Borrowers' or such Subsidiaries' purchase
thereof or (b) the date upon which such property was last security for
Indebtedness of such Borrower or such Subsidiary if such financing was not
closed on or about the date of the acquisition of such property, including
preparation of a "Phase I" report and, if appropriate, a "Phase II" report,
in each case prepared by a recognized environmental consultant in accordance
with customary standards which discloses that such property is not in
violation of the representations and covenants set forth in this Agreement,
unless such violation as to properties in the Unencumbered Asset Pool has
been disclosed in writing to the Managing Agent and satisfactory remediation
actions are being taken. There are no unpaid or outstanding real estate or
other taxes or assessments on or against any property of any Borrower or any
of their respective Subsidiaries which are payable by such Person (except
only real estate or other taxes or assessments, that are not yet due and
payable). There are no pending eminent domain proceedings against any
property included within the Unencumbered Asset Pool, and, to the knowledge
of the Borrowers, no such proceedings are presently threatened or
contemplated by any taking authority which may individually or in the
aggregate have a Material Adverse Effect. None of the property of Borrowers
or their respective Subsidiaries is now damaged or injured as a result of any
fire, explosion, accident, flood or other casualty in any manner which
individually or in the aggregate would have a Material Adverse Effect. The
Real Property owned by Parent, each of the other Borrowers and their
respective Subsidiaries as of the date hereof is set forth on SCHEDULE 4.19
hereto.

     4.20  BROKERS. None of the Borrowers nor any of their respective
Subsidiaries has engaged or otherwise dealt with any broker, finder or
similar entity in connection with this Agreement or the Loans contemplated
hereunder.

    4.21  OTHER DEBT. None of the Borrowers or any of their respective
Subsidiaries is in default (after expiration of all applicable grace and cure
periods) in the payment of any other Indebtedness or under any mortgage, deed
of trust, security agreement, financing agreement or indenture involving
Indebtedness of $5,000,000.00 or more or under any other material agreement
or lease to which any of them is a party. None of the Borrowers is a party to
or bound by any agreement, instrument or indenture that may require the
subordination in right or time of payment of any of the Obligations to any
other indebtedness or obligation of such Borrower. SCHEDULE 4.21 hereto sets
forth all of the Indebtedness of the type described in Sections 6.11 and 6.12
of the Borrowers and their respective Subsidiaries as of the date hereof.

     4.22  SOLVENCY. As of the Closing Date and after giving effect to the
transactions contemplated by this Agreement and the other Loan Documents,
including all of the Loans made or to be made hereunder, none of the
Borrowers is insolvent on a balance sheet basis such that the sum of such
Person's assets exceeds the sum of such Person=s liabilities, each Borrower
is able to pay its debts as they become due, and each Borrower has sufficient
capital to carry on its business.

                                      -58-
<PAGE>

     4.23  NO FRAUDULENT INTENT. Neither the execution and delivery of this
Agreement or any of the other Loan Documents nor the performance of any
actions required hereunder or thereunder is being undertaken by any Borrower
with or as a result of any actual intent by any of such Persons to hinder,
delay or defraud any entity to which any of such Persons is now or will
hereafter become indebted.

     4.24  TRANSACTION IN BEST INTERESTS OF BORROWERS; CONSIDERATION. The
transaction evidenced by this Agreement and the other Loan Documents is in
the best interests of the Borrowers. The direct and indirect benefits to
inure to the Borrowers pursuant to this Agreement and the other Loan
Documents constitute substantially more than "reasonably equivalent value"
(as such term is used in Section 548 of the Bankruptcy Code) and "valuable
consideration," "fair value," and "fair consideration" (as such terms are
used in any applicable state fraudulent conveyance law), in exchange for the
benefits to be provided by the Borrowers pursuant to this Agreement and the
other Loan Documents, and but for the willingness of the Borrowers to be
jointly and severally liable as co-borrowers for the Loan, Borrowers would be
unable to obtain the financing contemplated hereunder which financing will
enable the Borrowers and their respective Subsidiaries to have available
financing to conduct and expand their business.

     4.25  NO BANKRUPTCY FILING. None of the Borrowers nor any of their
respective Subsidiaries is contemplating either the filing of a petition by
it under any state or federal bankruptcy or insolvency laws or the
liquidation of its assets or property, and none of the Borrowers has any
knowledge of any Person contemplating the filing of any such petition against
it or any of such other Persons.

     4.26  YEAR 2000 COMPLIANCE. The Borrowers have taken all action
necessary to ensure that the Borrowers are "Year 2000 compliant" (as defined
below) and that their business is not materially interrupted as a result of
any "Year 2000 Problem". "Year 2000 compliant" means that material
date-affected technology, including, without limitation, computers, hardware,
imbedded microchips and software, used in the Borrowers' business operations
or in the business operations of the Borrowers' key vendors, suppliers and
customers, as the case may be, are able to correctly and effectively store,
process and otherwise deal with date data from, into, between and otherwise
concerning the twentieth and twenty-first centuries, and otherwise continue
to function properly and unimpaired with respect to all calendar dates
falling on or after January 1, 2000.

                                    Article 5
                              AFFIRMATIVE COVENANTS
                           (OTHER THAN INFORMATION AND
                             REPORTING REQUIREMENTS)

    So long as any Advance remains unpaid, or any Letter of Credit remains
outstanding, or any other Obligation remains unpaid, or any portion of the
Commitments

                                      -59-

<PAGE>

remains in force, Borrowers shall, unless the Managing Agent (with the
written approval of the Requisite Banks) otherwise consents:

     5.1  PAYMENT OF TAXES AND OTHER POTENTIAL LIENS. Pay and discharge
promptly all taxes, assessments and governmental charges or levies imposed
upon any of them, upon their respective Property or any part thereof and upon
their respective income or profits or any part thereof, and all claims for
labor, materials or supplies that if unpaid might by law become a lien or
charge upon any of their respective Property, EXCEPT that Borrowers shall not
be required to pay or cause to be paid (a) any tax, assessment, charge, levy
or claim that is not yet past due, or is being contested in good faith by
appropriate proceedings so long as the relevant entity has established and
maintains adequate reserves for the payment of the same or (b) any immaterial
tax or claim so long as no material Property of Borrowers is at impending
risk of being seized, levied upon or forfeited.

     5.2  PRESERVATION OF EXISTENCE. Preserve and maintain their respective
existences in the jurisdiction of their formation and all material
authorizations, rights, franchises, privileges, consents, approvals, orders,
licenses, permits, or registrations from any Governmental Agency that are
necessary for the transaction of their respective business and qualify and
remain qualified to transact business in each jurisdiction in which such
qualification is necessary in view of their respective business or the
ownership or leasing of their respective Properties EXCEPT (a) as otherwise
permitted by this Agreement and (b) where the failure to so qualify or remain
qualified would not constitute a Material Adverse Effect.

     5.3  MAINTENANCE OF PROPERTIES. Maintain, preserve and protect all of
their respective Properties in good order and condition, subject to wear and
tear in the ordinary course of business, and not permit any waste of their
respective Properties, EXCEPT that the failure to maintain, preserve and
protect a particular item of Property that is at the end of its useful life
or that is not of significant value, either intrinsically or to the
operations of Borrowers, shall not constitute a violation of this covenant.

     5.4  MAINTENANCE OF INSURANCE. Maintain liability, casualty and other
insurance (subject to customary deductibles and retentions) with responsible
insurance companies in such amounts and against such risks as is carried by
responsible companies engaged in similar businesses and owning similar assets
in the general areas in which Borrowers operate.

     5.5  COMPLIANCE WITH LAWS. Comply with all Requirements of Law
noncompliance with which constitutes a Material Adverse Effect, EXCEPT that
Borrowers need not comply with a Requirement of Law then being contested by
any of them in good faith by appropriate proceedings.

     5.6  INSPECTION RIGHTS. Upon reasonable notice, at any time during
regular business hours and as often as reasonably requested (but not so as to
materially interfere with the business of Parent or any of its Subsidiaries)
permit the Managing Agent or any Bank, or any authorized employee, agent or
representative thereof, to examine, audit and make copies and abstracts from
the records and books of account of, and to visit and inspect the Properties

                                      -60-

<PAGE>

(subject to the rights of any tenants) of, Parent and its Subsidiaries and to
discuss the affairs, finances and accounts of Parent and its Subsidiaries
with any of their officers, key employees or accountants.

     5.7  KEEPING OF RECORDS AND BOOKS OF ACCOUNT. Keep adequate records and
books of account reflecting all financial transactions in conformity with
Generally Accepted Accounting Principles, consistently applied, and in
material conformity with all applicable requirements of any Governmental
Agency having regulatory jurisdiction over Borrowers.

     5.8  COMPLIANCE WITH AGREEMENTS. Promptly and fully comply with all
Contractual Obligations to which any one or more of them is a party, EXCEPT
for any such Contractual Obligations (a) the performance of which would cause
a Default or (b) then being contested by any of them in good faith by
appropriate proceedings or if the failure to comply with such agreements,
indentures, leases or instruments does not constitute a Material Adverse
Effect.

     5.9  USE OF PROCEEDS. Use the proceeds of all Loans and issuances of
Letters of Credit for working capital and general corporate purposes of
Borrowers, INCLUDING the acquisition and/or improvement of Revenue-Producing
Properties and land.

     5.10  HAZARDOUS MATERIALS LAWS. Keep and maintain all Real Property and
each portion thereof in compliance in all material respects with all
applicable Hazardous Materials Laws and promptly notify the Managing Agent in
writing (attaching a copy of any pertinent written material) of (a) any and
all material enforcement, cleanup, removal or other governmental or
regulatory actions instituted, completed or threatened in writing by a
Governmental Agency pursuant to any applicable Hazardous Materials Laws, (b)
any and all material claims made or threatened in writing by any Person
against Borrowers relating to damage, contribution, cost recovery,
compensation, loss or injury resulting from any Hazardous Materials and (c)
discovery by any Senior Officer of any of Borrowers of any material
occurrence or condition on any Real Property or on any real property
adjoining or in the vicinity of such Real Property that could reasonably be
expected to cause such Real Property or any part thereof to be subject to any
restrictions on the ownership, occupancy, transferability or use of such Real
Property under any applicable Hazardous Materials Laws.

     5.11  UNENCUMBERED ASSET POOL. Cause each Revenue-Producing Property in
the Unencumbered Asset Pool to remain a Qualified Unencumbered Asset Pool
Property so long as it is in the Unencumbered Asset Pool; PROVIDED that
nothing herein shall preclude the removal of any Revenue-Producing Property
from the Unencumbered Asset Pool pursuant to Section 2.11.

     5.12  REIT STATUS. Maintain the status of Parent as a "real estate
investment trust" under Section 856 of the Code and comply with the dividend
and other requirements applicable under Section 857(a) of the Code.

                                      -61-

<PAGE>

     5.13  ADDITIONAL BORROWERS. Cause each Wholly-Owned Subsidiary of Parent
which is not then a Borrower and which holds a Revenue-Producing Property
that is or will become part of the Unencumbered Asset Pool to execute and
deliver the Joinder Agreement concurrently with the addition of such
Revenue-Producing Property to the Unencumbered Asset Pool.

     5.14  INSPECTION OF PROPERTIES AND BOOKS. Permit the Banks, through the
Managing Agent or any representative designated by the Managing Agent, at the
Borrowers' expense, to visit and inspect any of the properties of the
Borrowers or any of their respective Subsidiaries, to examine the books of
account of the Borrowers and their respective Subsidiaries (and to make
copies thereof and extracts therefrom) and to discuss the affairs, finances
and accounts of the Borrowers and their respective Subsidiaries with, and to
be advised as to the same by, its Senior Officers, all at such reasonable
times (typically during normal business hours) and intervals as the Managing
Agent or any Bank may reasonably request upon not less than four (4) Banking
Days notice. The Banks shall use good faith efforts to coordinate such visits
and inspections so as to minimize the interference with and disruption to the
Borrowers' normal business operations. At least once annually, the Borrowers
shall attend a meeting with the Banks and the Managing Agent to discuss the
financial condition and affairs of the Borrowers and their respective
Subsidiaries.

     5.15  MORE RESTRICTIVE AGREEMENTS. Promptly notify the Managing Agent
should any Borrower enter into or modify any agreements or documents
pertaining to any existing or future Indebtedness, Debt Offering or Equity
Offering, which agreements or documents include covenants, whether
affirmative or negative, which are individually or in the aggregate more
restrictive against any Borrower or their respective Subsidiaries than those
set forth in Sections 5.17, 6.1, 6.5 through 6.13, inclusive, or 6.15 (or any
other provision which may have the same practical effect as any of the
foregoing) or which provide for a guaranty of the obligations thereunder by a
Person that is not liable for the Obligations. If requested by the Requisite
Banks, the Borrowers, the Managing Agent, and the Requisite Banks shall
promptly amend this Agreement and the other Loan Documents to include some or
all of such more restrictive provisions or provide for a guaranty of the
Obligations by such Person as determined by the Requisite Banks in their sole
discretion. Notwithstanding the foregoing, this Section 5.15 shall not apply
to covenants contained in any agreements or documents that relate only to
specific Real Property that is collateral for any existing or future
Indebtedness of any of the Borrowers that is permitted by the terms of this
Agreement.

     5.16  DISTRIBUTIONS OF INCOME TO THE BORROWERS. Cause all of their
respective Subsidiaries to promptly transfer to such Borrower (but not less
frequently than once each fiscal quarter of such Borrower), whether in the
form of dividends, distributions or otherwise, all profits, proceeds or other
income relating to or arising from its Subsidiaries' use, operation,
financing, refinancing, sale or other disposition of their respective assets
and properties after (a) the payment by each Subsidiary of its Debt Service
and operating expenses for such quarter and (b) the establishment of
reasonable reserves for the payment of operating expenses not paid on at
least a quarterly basis and capital improvements to be made to such
Subsidiary's

                                      -62-

<PAGE>

assets and properties approved by such Subsidiary in the ordinary course of
business consistent with its past practices.

     5.17  UNENCUMBERED ASSET POOL.

          (a)  Cause each of the Revenue-Producing Properties in the
Unencumbered Asset Pool to satisfy all of the following conditions:

               (i) the Revenue-Producing Properties shall be owned by a
          Borrower or leased by a Borrower pursuant to a Mortgageable Ground
          Lease (subject to the terms of this Agreement);

              (ii) no more than twenty-five percent (25%) of the Asset Value
          of the Revenue-Producing Properties in the Unencumbered Asset Pool
          may be leased by a Borrower pursuant to a Mortgageable Ground Lease;

             (iii) the Revenue-Producing Properties in the Unencumbered Asset
          Pool shall consist solely of Revenue-Producing Properties which
          have an aggregate occupancy level (on a portfolio basis) of at
          least eighty-five percent (85%) as of the end of the previous four
          (4) fiscal quarters of the Borrowers based on bona fide arms-length
          tenant leases which are in full force and effect requiring current
          rental payments and which are in good standing; and

              (iv) no more than thirty-three percent (33%) of the Asset Value
          of the Revenue-Producing Properties in the Unencumbered Asset Pool
          may be located in any one city or metropolitan area; provided that
          no more than fifty percent (50%) of the Asset Value of the
          Revenue-Producing Properties in the Unencumbered Asset Pool may be
          located in suburban Washington, D.C.

          (b)  Provide to the Managing Agent as of the Closing Date and
concurrently with the delivery of the financial statements described in
Section 7.1(c) as part of the Compliance Certificate required pursuant to
Section 7.2 (i) a list of the Revenue-Producing Properties in the
Unencumbered Asset Pool, (ii) the certification of a Senior Officer of the
Borrowers of the Asset Values of such properties and that such properties are
in compliance with Section 5.17(a), (iii) operating statements setting forth
the NOI and Net Capital Expenditures for each of the Revenue-Producing
Properties in the Unencumbered Asset Pool for the previous four (4) fiscal
quarters (or such shorter period as the Revenue-Producing Property has been
held by the Borrowers if such statements are not available to Borrowers)
certified as true and correct by a Senior Officer of the Borrowers, and (iv)
a certificate that the Revenue-Producing Properties in the Unencumbered Asset
Pool comply with the terms of Sections 4.17 and 4.19. In the event that all
or any material portion of a Revenue-Producing Property within the
Unencumbered Asset Pool shall be damaged or taken by condemnation, then such
property shall no longer be a part of the Unencumbered Asset Pool unless and
until any damage to such Revenue-Producing Property is repaired or restored,
such Revenue-Producing Property becomes fully operational and the Managing
Agent shall

                                      -63-

<PAGE>

receive evidence satisfactory to the Managing Agent of the value and NOI of
such Revenue-Producing Property following such repair or restoration.

                                    Article 6
                               NEGATIVE COVENANTS

     So long as any Advance remains unpaid, or any Letter of Credit remains
outstanding, or any other Obligation remains unpaid, or any portion of the
Commitments remains in force, Borrowers shall not, unless the Managing Agent
(with the written approval of the Requisite Banks or, if required by Section
12.1, of all of the Banks) otherwise consents:

     6.1  MERGERS. Merge or consolidate with or into any Person, EXCEPT a
merger or consolidation of one or more Borrowers with and into another
Borrower or a merger or consolidation where Parent or a Borrower is the
surviving corporation that does not result in a Change in Control.

     6.2  ERISA. (a) At any time, permit any Pension Plan to: (i) engage in
any non-exempt "prohibited transaction" (as defined in Section 4975 of the
Code) which could reasonably be expected to result in a Material Adverse
Effect, (ii) fail to comply with ERISA which could reasonably be expected to
result in a Material Adverse Effect, (iii) incur any material "accumulated
funding deficiency" (as defined in Section 302 of ERISA) which could
reasonably be expected to result in a Material Adverse Effect or (iv)
terminate in any manner which could reasonably be expected to result in a
Material Adverse Effect, or (b) withdraw, completely or partially, from any
Multiemployer Plan if to do so could reasonably be expected to result in a
Material Adverse Effect.

     6.3  CHANGE IN NATURE OF BUSINESS. Make any material change in the
principal nature of the business of Borrowers, such business being the
acquisition, ownership and development of buildings for use as office or,
with respect to the life science industry only, office/laboratory, research
or manufacturing/warehouse properties.

     6.4  TRANSACTIONS WITH AFFILIATES. Enter into any transaction of any
kind with any Affiliate of Borrowers OTHER THAN (a) salary, bonus, employee
stock option, relocation assistance and other compensation arrangements with
directors or officers in the ordinary course of business, (b) transactions
that are fully disclosed to the board of directors of Parent and expressly
authorized by a resolution of the board of directors of Parent which is
approved by a majority of the directors not having an interest in the
transaction, (c) transactions expressly permitted by this Agreement, (d)
transactions between one Borrower and another Borrower and (e) transactions
on overall terms at least as favorable to Borrowers as would be the case in
an arm's-length transaction between unrelated parties of equal bargaining
power.

     6.5  LEVERAGE RATIO. Permit the Leverage Ratio, as of the last day of
any Fiscal Quarter, to be greater than .55 to 1.00.

                                       -64-

<PAGE>

     6.6  DEBT SERVICE COVERAGE. Permit Debt Service Coverage, as of the last
day of any Fiscal Quarter, to be less than 2.0 to 1.00.

     6.7  FIXED CHARGE COVERAGE. Permit Fixed Charge Coverage, as of the last
day of any Fiscal Quarter, to be less than 1.70 to 1.00.

     6.8  DISTRIBUTIONS. Make any Distribution (a) with respect to any Fiscal
Quarter or Fiscal Year in excess of (i) an amount equal to 90% of Funds From
Operations of Parent and its Subsidiaries for that Fiscal Quarter or Fiscal
Year or (ii) an amount equal to 100% of Funds Available for Distribution of
Parent and its Subsidiaries for the four (4) consecutive Fiscal Quarters
ending prior to the Fiscal Quarter in which such Distribution is paid
(provided that Parent shall be permitted to pay the minimum Distribution
required under the Code to maintain and preserve Parent's status as a real
estate investment trust under the Code, as evidenced by a certification of a
Senior Officer of Parent containing calculations in reasonable detail
satisfactory in form and substance to the Managing Agent, if such
Distribution is greater than the amount set forth in clause (a) (i) and (ii)
above), or (b) during the continuance of an Event of Default, in excess of
the minimum amount necessary to comply with Section 857(a) of the Code.

     6.9  STOCKHOLDERS' EQUITY. Permit Stockholders' Equity, as of
the last day of any Fiscal Quarter, to be less than the sum of (a) $325,000,000
PLUS (b) ninety percent of the net proceeds from any Equity Offering of any
Borrower made after the Closing Date.

     6.10  DEVELOPMENT INVESTMENTS. Permit any Borrower or any Subsidiary or
Affiliate thereof to engage, directly or indirectly, in the development of
Real Property, except that a Borrower or a Subsidiary or Affiliate thereof
may (a) hold direct and indirect interests in non-income producing land
assets, provided that the book value of such interests does not exceed five
percent (5%) of Adjusted Tangible Assets as of the most recently-ended Fiscal
Quarter, and (b) develop for its own account properties to be used
principally for office, office/laboratory, research or manufacturing/
warehouse purposes, provided that such development shall be limited to such
number of projects with respect to which the aggregate cost as of the date of
computation of acquiring Real Property (including the non-income producing
land assets described in (a) above) and developing, constructing, renovating,
rehabilitating and leasing the improvements thereon (assuming the full cost
of completion thereof) does not exceed twenty percent (20%) of Adjusted
Tangible Assets as of the most recently-ended Fiscal Quarter (such projects
are hereinafter referred to collectively as the "Development Investments"). A
project shall be considered to be a Development Investment from the issuance
of permits for construction until final certificates of occupancy or their
equivalent have been issued for the entire project. For purposes of this
Section 6.10, the term "development" shall include new construction or the
substantial renovation of improvements to real property.

     6.11  SECURED DEBT. Permit Secured Debt of Parent and its Subsidiaries
to exceed an amount equal to 35% of Adjusted Tangible Assets as of the most
recently-ended Fiscal Quarter.

                                      -65-

<PAGE>

     6.12  RECOURSE DEBT. Permit recourse Indebtedness (whether secured or
unsecured) of Parent and its Subsidiaries (excluding the Obligations) to
exceed an amount equal to 20% of Adjusted Tangible Assets as of the most
recently-ended Fiscal Quarter.

     6.13  INVESTMENTS IN CERTAIN PERSONS. Make Investments in (a) any Person
that is not a Wholly-Owned Subsidiary of Parent existing as of the date
hereof or new Wholly-Owned Subsidiaries of Parent acquired or created after
the date of this Agreement which become Borrowers except as permitted in
Section 6.13(b), or (b) any Person (other than Investments by a Subsidiary of
Parent in Parent), if the aggregate value of the Investments pursuant to this
Section 6.13(b) shall exceed ten percent (10%) of the Adjusted Tangible
Assets as of the most recently-ended Fiscal Quarter.

     6.14  NEGATIVE PLEDGES. Grant to any Person a Negative Pledge on any
Revenue-Producing Property of Parent and its Subsidiaries that, as of the
LATER OF the "Closing Date" of the Original Credit Agreement or the date of
its acquisition, is not subject to a Lien (OTHER THAN Permitted Encumbrances).

     6.15  [INTENTIONALLY OMITTED].

     6.16  LIMITING AGREEMENTS. Enter into any agreement, instrument or
transaction which has or may have the effect of prohibiting or limiting such
Borrower's ability to pledge to Managing Agent the Revenue-Producing Property
within the Unencumbered Asset Pool. Borrowers shall take, and shall cause the
their respective Subsidiaries to take, such actions as are necessary to
preserve the right and ability of Borrowers to pledge those Revenue-Producing
Properties without any such pledge after the date hereof causing or
permitting the acceleration (after the giving of notice or the passage of
time, or otherwise) of any other Indebtedness of Borrowers or any of their
respective Subsidiaries. Borrowers shall, upon demand, provide to the
Managing Agent such evidence as the Managing Agent may reasonably require to
evidence compliance with this Section 6.16, which evidence shall include,
without limitation, copies of any agreements or instruments which would in
any way restrict or limit a Borrower's ability to pledge assets as security
for Indebtedness, or which provide for the occurrence of a default (after the
giving of notice or the passage of time, or otherwise) if assets are pledged
in the future as security for Indebtedness of such Borrower or any of its
Subsidiaries.

     6.17  RESTRICTION ON PREPAYMENT OF INDEBTEDNESS. Prepay the principal
amount, in whole or in part, of any Indebtedness other than the Obligations
after the occurrence of any Event of Default of a monetary nature or
consisting of a failure to comply with the covenants contained in Sections
6.5 and 6.6; provided, however, that this Section 6.17 shall not prohibit the
prepayment of Indebtedness which is financed solely from the proceeds of a
new loan which would otherwise be permitted by the terms of this Agreement.

     6.18  RESTRICTIONS ON TRANSFER. Parent will not, directly or indirectly,
make or permit to be made, by voluntary or involuntary means, any sale,
assignment, transfer, disposition, mortgage, pledge, hypothecation or
encumbrance of its direct or indirect interest

                                      -66-

<PAGE>

in Operating Partnership, ARE, QRS or any other Borrower (provided that the
foregoing shall not prohibit transfers of Parent's interest in Operating
Partnership, ARE, QRS or any other Borrower provided such Borrower remains a
Wholly-Owned Subsidiary of Parent), or any dilution of its direct or indirect
interest in Operating Partnership, ARE, QRS or any other Borrower. Parent
shall not in any manner transfer, assign, diminish or otherwise restrict its
direct or indirect right to vote or other rights with respect to Operating
Partnership, ARE, QRS or any other Borrower. Notwithstanding the foregoing,
Parent may sell, assign, transfer or dispose of its interest in another
Borrower (other than Operating Partnership) that is a Subsidiary of Parent,
provided that on or before the closing of such sale the Borrower shall have
delivered to the Managing Agent a certification, together with such other
evidence as Managing Agent may require, that the Borrowers will be in
compliance with all covenants in this Agreement after giving effect to such
sale, assignment, transfer or other disposition, and provided further that
from and after any such sale, the assets of such Borrower shall no longer be
included within the Unencumbered Asset Pool. In the event that the Borrower
shall comply with the foregoing provisions, such Borrower shall be released
from liability under this Agreement by the Managing Agent. The Managing Agent
may also release a Borrower from liability if all of the Revenue Producing
Properties of such Borrower are sold (subject to the requirement in Section
3.1(h) that the gross proceeds of any such sale be deposited with the
Managing Agent) or all of the Revenue Producing Properties of such Borrower
cease to be Unencumbered, provided that on or before the effective date of
such release, the Borrowers shall have delivered to the Managing Agent a
certification, together with such other evidence as the Managing Agent may
require, that the Borrowers will be in compliance with all covenants in this
Agreement after giving effect to such release.

                                    Article 7
                     INFORMATION AND REPORTING REQUIREMENTS

     7.1  FINANCIAL AND BUSINESS INFORMATION. So long as any Advance remains
unpaid, or any Letter of Credit remains outstanding, or any other Obligation
remains unpaid, or any portion of the Commitments remains in force, Borrowers
shall, unless the Managing Agent (with the written approval of the Requisite
Banks) otherwise consents, at Borrowers' sole expense, deliver to the
Managing Agent for distribution by it to the Banks, a sufficient number of
copies for all of the Banks of the following:

          (a)  As soon as practicable, and in any event within 60 days after
     the end of each Fiscal Quarter (OTHER THAN the fourth Fiscal Quarter in
     any Fiscal Year), the consolidated balance sheet of Parent and its
     Subsidiaries as at the end of such Fiscal Quarter and the consolidated
     statements of operations and cash flows for such Fiscal Quarter, and the
     portion of the Fiscal Year ended with such Fiscal Quarter, all in
     reasonable detail. Such financial statements shall be certified by a
     Senior Officer of Parent as fairly presenting the financial condition,
     results of operations and cash flows of Parent and its Subsidiaries in
     accordance with Generally Accepted Accounting Principles (other than
     footnote disclosures), consistently applied, as at such date and for
     such periods, subject only to normal year-end accruals and audit
     adjustments;

                                      -67-

<PAGE>

          (b) As soon as practicable, and in any event within 60 days after
     the end of each Fiscal Quarter, a Pricing Certificate setting forth a
     calculation of the Leverage Ratio as of the last day of such Fiscal
     Quarter, and providing reasonable detail as to the calculation thereof,
     which calculations in the case of the fourth Fiscal Quarter in any
     Fiscal Year shall be based on the preliminary unaudited financial
     statements of Parent and its Subsidiaries for such Fiscal Quarter, and
     as soon as practicable thereafter, in the event of any material variance
     in the actual calculation of the Leverage Ratio from such preliminary
     calculation, a revised Pricing Certificate setting forth the actual
     calculation thereof;

          (c)  As soon as practicable, and in any event within 60 days after
     the end of each Fiscal Quarter, statements of operating income for such
     Fiscal Quarter and Fiscal Year to date for each of the Revenue-Producing
     Properties in the Unencumbered Asset Pool and a summary Rent Roll for
     each of the Revenue-Producing Properties in the Unencumbered Asset Pool,
     each in reasonable detail;

          (d)  As soon as practicable, and in any event within 60 days after
     the end of each Fiscal Quarter, supplemental disclosure information
     setting forth the effect on Net Income reflected in the financial
     statements for such Fiscal Quarter and Fiscal Year to date of any
     difference between the rents payable by tenants during the periods
     covered by such financial statements and the "straight line" rents
     payable over the terms of their respective leases, in reasonable detail;

          (e)  As soon as practicable, and in any event within 120 days after
     the end of each Fiscal Year, the consolidated balance sheet of Parent
     and its Subsidiaries as at the end of such Fiscal Year and the
     consolidated statements of operations, stockholders' equity and cash
     flows, in each case of Parent and its Subsidiaries for such Fiscal Year,
     all in reasonable detail. Such financial statements shall be prepared in
     accordance with Generally Accepted Accounting Principles, consistently
     applied, and shall be accompanied by a report of Ernst & Young LLP or
     other independent public accountants of recognized standing selected by
     Parent and reasonably satisfactory to the Requisite Banks, which report
     shall be prepared in accordance with generally accepted auditing
     standards as at such date, and shall not be subject to any
     qualifications or exceptions as to the scope of the audit nor to any
     other qualification or exception determined by the Requisite Banks in
     their good faith business judgment to be adverse to the interests of the
     Banks;

          (f) As soon as practicable, and in any event before the
     commencement of each Fiscal Year, a budget and projection by Fiscal
     Quarter for that Fiscal Year and by Fiscal Year for the next two
     succeeding Fiscal Years, INCLUDING for the first such Fiscal Year,
     projected consolidated balance sheets, statements of operations and
     statements of cash flow and, for the second and third such Fiscal Years,
     projected consolidated condensed balance sheets and statements of
     operations and cash flows, of Parent and its Subsidiaries, all in
     reasonable detail;

                                      -68-

<PAGE>

          (g)  Promptly after request by the Managing Agent or any Bank,
     copies of any detailed audit reports, management letters or
     recommendations submitted to the board of directors (or the audit
     committee of the board of directors) of Parent by independent
     accountants in connection with the accounts or books of Parent or any of
     its Subsidiaries, or any audit of any of them;

          (h)  Promptly after the same are available, and in any event within
     five (5) Banking Days after filing with the Securities and Exchange
     Commission, copies of each annual report, proxy or financial statement
     or other report or communication sent to the stockholders of Parent, and
     copies of all annual, regular, periodic and special reports and
     registration statements which Parent may file or be required to file
     with the Securities and Exchange Commission under Section 13 or 15(d) of
     the Securities Exchange Act of 1934, as amended, and not otherwise
     required to be delivered to the Banks pursuant to other provisions of
     this Section 8.1;

          (i)  Promptly after request by the Managing Agent or any Bank,
     copies of any other report or other document that was filed by Borrowers
     with any Governmental Agency;

          (j)  Promptly upon a Senior Officer becoming aware, and in any event
     within five (5) Banking Days after becoming aware, of the occurrence of
     any (i) "reportable event" (as such term is defined in Section 4043 of
     ERISA, but EXCLUDING such events as to which the PBGC has by regulation
     waived the requirement therein contained that it be notified within
     thirty days of the occurrence of such event) or (ii) non-exempt
     "prohibited transaction" (as such term is defined in Section 406 of
     ERISA or Section 4975 of the Code) involving any Pension Plan or any
     trust created thereunder, telephonic notice specifying the nature
     thereof, and, no more than two (2) Banking Days after such telephonic
     notice, written notice again specifying the nature thereof and
     specifying what action Borrowers are taking or propose to take with
     respect thereto, and, when known, any action taken by the Internal
     Revenue Service with respect thereto;

          (k)  As soon as practicable, and in any event within two (2) Banking
     Days after a Senior Officer becomes aware of the existence of any
     condition or event which constitutes a Default or Event of Default,
     telephonic notice specifying the nature and period of existence thereof,
     and, no more than two (2) Banking Days after such telephonic notice,
     written notice again specifying the nature and period of existence
     thereof and specifying what action Borrowers are taking or propose to
     take with respect thereto;

          (l)  Promptly upon a Senior Officer becoming aware that (i) any
     Person has commenced a legal proceeding with respect to a claim against
     Borrowers that is $1,000,000 or more in excess of the amount thereof
     that is fully covered by insurance, (ii) any creditor under a credit
     agreement involving Indebtedness of $1,000,000 or more or any lessor
     under a lease involving aggregate rent of $1,000,000

                                      -69-

<PAGE>

     or more has asserted a default thereunder on the part of Borrowers or,
     (iii) any Person has commenced a legal proceeding with respect to a
     claim against Borrowers under a contract (that is not a credit agreement
     or material lease) in excess of $1,000,000 or which otherwise may
     reasonably be expected to result in a Material Adverse Effect, a written
     notice describing the pertinent facts relating thereto and what action
     Borrowers are taking or propose to take with respect thereto;

          (m)  Promptly upon request after they are filed with the Internal
     Revenue Service, copies of all annual federal income tax returns and
     amendments thereto of each of the Borrowers;

          (n)  Not later than sixty (60) days after the end of each fiscal
     quarter of the Borrowers (including the fourth fiscal quarter in each
     year), a list (which may be included in the Compliance Certificates)
     setting forth the following information with respect to each new
     Subsidiary or Controlled Entity of any of the Borrowers: (i) the name,
     structure and ownership of the Subsidiary or Controlled Entity, (ii) a
     description of the property owned by such Subsidiary or Controlled
     Entity, and (iii) such other information as the Managing Agent may
     reasonably request;

          (o)  Simultaneously with the delivery of the financial statement
     referred to in Section 7.1(e) above (if such information is not
     otherwise included in the financial statement or other information
     presented to the Banks pursuant to this Section 7.1), a statement (which
     may be included in the Compliance Certificates) listing (i) the Real
     Property owned by Parent and its Subsidiaries (or in which Parent or its
     Subsidiaries owns an interest) and stating the location thereof, the
     date acquired and the acquisition cost, (ii) the Indebtedness of Parent
     and its Subsidiaries, which statement shall include, without limitation,
     a statement of the original principal amount of such Indebtedness and
     the current amount outstanding, the holder thereof, the maturity date
     and any extension options, the interest rate, the collateral provided
     for such Indebtedness and whether such Indebtedness is recourse or
     non-recourse, and (iii) the properties of Parent and its respective
     Subsidiaries which are under "development" (as used in Section 6.10) and
     providing a brief summary of the status of such development;

          (p)  Contemporaneously with the release thereof, copies of all press
     releases or other public announcements;

          (q)  Promptly upon a Senior Officer becoming aware of a change in
     the credit rating given by a Rating Agency to Parent's long-term senior
     unsecured debt or any announcement that any rating is "under review" or
     that such rating has been placed on a watch list or that any similar
     action has been taken by a Rating Agency, written notice of such change,
     announcement or action;

                                      -70-

<PAGE>

          (r)  When and as required by Section 2.11, the information
     regarding each Qualified Unencumbered Asset Pool Property, as more
     particularly described in Section 2.11;

          (s)  When and as required by Section 5.17(b), the information
     regarding the Unencumbered Asset Pool, as more particularly described in
     Section 5.17(b); and

          (t)  Such other data and information as from time to time may be
     reasonably requested by the Managing Agent, any Bank (through the
     Managing Agent) or the Requisite Banks.

     7.2  COMPLIANCE CERTIFICATES. So long as any Advance remains unpaid, or
any other Obligation remains unpaid or unperformed, or any portion of the
Commitments remains outstanding, Borrowers shall, at Borrowers' sole expense,
deliver to the Managing Agent for distribution by it to the Banks
concurrently with the financial statements required pursuant to Sections
7.1(a), 7.1(c) and 7.1(e), Compliance Certificates signed by a Senior Officer.

                                    Article 8
                                    CONDITIONS

     8.1  INITIAL ADVANCES. The obligation of each Bank to make the initial
Advance to be made by it or of the Managing Agent to issue the initial Letter
of Credit is subject to the following conditions precedent, each of which
shall be satisfied prior to the making of the initial Advances (unless all of
the Banks, in their sole and absolute discretion, shall agree otherwise):

          (a)  The Managing Agent shall have received all of the following,
     each of which shall be originals unless otherwise specified, each
     properly executed by a Responsible Official of each party thereto, each
     dated as of the Closing Date and each in form and substance satisfactory
     to the Managing Agent and its legal counsel (unless otherwise specified
     or, in the case of the date of any of the following, unless the Managing
     Agent otherwise agrees or directs):

               (1)  at least one (1) executed counterpart of this Agreement,
          together with arrangements satisfactory to the Managing Agent for
          additional executed counterparts, sufficient in number for
          distribution to the Banks and Borrowers;

               (2)  Line Notes executed by Borrowers in favor of each Bank,
          each in a principal amount equal to that Bank's Pro Rata Share of
          the Line Commitment;

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<PAGE>

               (3)  Competitive Advance Notes executed by Borrowers in favor
          of each Bank, each in the principal amount of $75,000,000;

               (4)  Swing Loan Note executed by Borrowers in favor of the
          Swing Loan Bank in the principal amount of $10,000,000;

               (5)  with respect to each of Borrowers, such documentation as
          the Managing Agent may require to establish the due organization,
          valid existence and good standing of each of Borrowers, its
          qualification to engage in business in each material jurisdiction
          in which it is engaged in business or required to be so qualified,
          its authority to execute, deliver and perform the Loan Documents to
          which it is a Party, the identity, authority and capacity of each
          Responsible Official thereof authorized to act on its behalf,
          INCLUDING certified copies of articles of incorporation and
          amendments thereto, bylaws and amendments thereto, certificates of
          good standing and/or qualification to engage in business, tax
          clearance certificates, certificates of corporate resolutions,
          incumbency certificates, Certificates of Responsible Officials, and
          the like;

               (6)  the Opinions of Counsel;

               (7)  such other assurances, certificates, documents, consents
          or opinions as the Managing Agent or the Requisite Banks reasonably
          may require.

          (b)  The closing fee payable pursuant to Section 3.2 shall have
     been paid.

          (c)  Any agency fees payable on the Closing Date ursuant to Section
     3.5 shall have been paid.

          (d)  The reasonable costs and expenses of the Managing Agent in
     connection with the preparation of the Loan Documents payable pursuant
     to Section 11.3, and invoiced to Borrowers prior to the Closing Date,
     shall have been paid.

          (e)  The representations and warranties of Borrowers contained in
     ARTICLE 4 shall be true and correct in all material respects.

          (f)  Borrowers and any other Parties shall be in compliance with
     all the terms and provisions of the Loan Documents, and giving effect to
     the initial Advance no Default or Event of Default shall have occurred
     and be continuing.

          (g)  All legal matters relating to the Loan Documents shall be
     satisfactory to Long Aldridge & Norman, LLP, special counsel to the
     Managing Agent.

                                       -72-

<PAGE>

          (h)  The Managing Agent shall have received a Compliance
     Certificate dated as of the date of the Closing Date demonstrating
     compliance with each of the covenants calculated therein as of the most
     recent Fiscal Quarter end for which the Borrowers have provided
     financial statements under Section 7.1 adjusted in the best good faith
     estimate of the Borrowers dated as of the date of the Closing Date.

          (i)  The Managing Agent shall have reviewed such other documents,
     instruments, certificates, opinions, assurances, consents and approvals
     as the Managing Agent or the Managing Agent's special counsel may
     reasonably have requested.

     8.2  ANY ADVANCE. The obligation of each Bank to make any Advance or of
the Swing Loan Bank to make a Swing Loan or of the Managing Agent to issue a
Letter of Credit is subject to the following conditions precedent (unless the
Requisite Banks, in their sole and absolute discretion, shall agree
otherwise):

          (a)  EXCEPT (i) for representations and warranties which expressly
     speak as of a particular date or are no longer true and correct as a
     result of a change which is permitted by this Agreement or (ii) as
     disclosed by Borrowers and approved in writing by the Requisite Banks,
     the representations and warranties contained in ARTICLE 4 (OTHER THAN
     Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent such
     representations relate expressly to an earlier date) shall be true and
     correct in all material respects on and as of the date of the Advance as
     though made on that date;

          (b)  other than matters described in SCHEDULE 4.10 or not required
     as of the Closing Date to be therein described, there shall not be then
     pending or threatened any action, suit, proceeding or investigation
     against or affecting Parent or any of its Subsidiaries or any Property
     of any of them before any Governmental Agency that constitutes a
     Material Adverse Effect;

          (c)  the Managing Agent shall have timely received a Request for
     Loan, Competitive Bid Request or Letter of Credit Request in compliance
     with ARTICLE 2 (or telephonic or other request for Loan referred to in
     the second sentence of Section 2.1(C), if applicable), in compliance
     with ARTICLE 2;

          (d)  no Default or Event of Default shall have occurred and be
     continuing;

          (e)  the Managing Agent shall have received a current calculation
     of the Borrowing Base with such supporting information as the Managing
     Agent may require adjusted in the best good faith estimate of the
     Borrowers to the date of such certification; and

                                      -73-

<PAGE>

          (f)  the Managing Agent shall have received, in form and substance
     satisfactory to the Managing Agent, such other assurances, certificates,
     documents or consents related to the foregoing as the Managing Agent or
     Requisite Banks reasonably may require.

                                   Article 9
              EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT

     9.1  EVENTS OF DEFAULT. The existence or occurrence of any one or more of
the following events, whatever the reason therefor and under any circumstances
whatsoever, shall constitute an Event of Default:

          (a)  Borrowers fail to pay any principal on any of the Notes, or
     any portion thereof, on the date when due; or

          (b)  Borrowers fail to pay any interest on any of the Notes, or any
     fees under Sections 3.4 or 3.5, or any portion thereof, within five (5)
     Banking Days after the date when due; or fail to pay any other fee or
     amount payable to the Banks or the Managing Agent under any Loan
     Document, or any portion thereof, within five (5) Banking Days after
     demand therefor; or

          (c)  Borrowers fail to comply with any of the covenants contained
     in ARTICLE 6; or

          (d)  Borrowers fail to comply with Section 7.1(k) in any respect
     that is materially adverse to the interests of the Banks; or

          (e)  Any Borrower or any other Party fails to perform or observe
     any other covenant or agreement (not specified in clause (a), (b), (c)
     or (d) above) contained in any Loan Document on its part to be performed
     or observed within thirty (30) Banking Days after the giving of notice
     by the Managing Agent on behalf of the Requisite Banks of such Default
     or, if such Default is not reasonably susceptible of cure within such
     period, within such longer period as is reasonably necessary to effect a
     cure so long as such Borrower or such Party continues to diligently
     pursue cure of such Default but not in any event in excess of sixty (60)
     Banking Days; or

          (f)  Any representation or warranty of Borrowers made in any Loan
     Document, or in any certificate or other writing delivered by Borrowers
     pursuant to any Loan Document, proves to have been incorrect when made
     or reaffirmed in any respect that is materially adverse to the interests
     of the Banks; or

          (g)  Borrowers (i) fail to pay the principal, or any principal
     installment, of any present or future Indebtedness (OTHER THAN
     Non-Recourse Debt) of $5,000,000 or more, or any guaranty of present or
     future Indebtedness (OTHER THAN Non-Recourse Debt) of $5,000,000 or
     more, on its part to be paid, when due (or within

                                      -74-

<PAGE>

     any stated grace period), whether at the stated maturity, upon
     acceleration, by reason of required prepayment or otherwise or (ii)
     fails to perform or observe any other term, covenant or agreement on its
     part to be performed or observed, or suffers any event of default to
     occur, in connection with any present or future Indebtedness (OTHER THAN
     Non-Recourse Debt) of $5,000,000 or more, or of any guaranty of present
     or future Indebtedness (OTHER THAN Non-Recourse Debt) of $5,000,000 or
     more, if as a result of such failure or sufferance any holder or holders
     thereof (or an agent or trustee on its or their behalf) has the right to
     declare such Indebtedness due before the date on which it otherwise
     would become due or the right to require Borrowers to redeem or
     purchase, or offer to redeem or purchase, all or any portion of such
     Indebtedness (PROVIDED, that for the purpose of this clause (G), the
     principal amount of Indebtedness consisting of a Swap Agreement shall be
     the amount which is then payable by the counterparty to close out the
     Swap Agreement); or

          (h)  Any Loan Document, at any time after its execution and
     delivery and for any reason OTHER THAN the agreement or action (or
     omission to act) of the Managing Agent or the Banks or satisfaction in
     full of all the Obligations ceases to be in full force and effect or is
     declared by a court of competent jurisdiction to be null and void,
     invalid or unenforceable in any respect which is materially adverse to
     the interests of the Banks; or any Party thereto denies in writing that
     it has any or further liability or obligation under any Loan Document,
     or purports to revoke, terminate or rescind same; or

          (i)  A final judgment against any of Borrowers is entered for the
     payment of money in excess of $1,000,000 (not covered by insurance or
     for which an insurer has reserved its rights) and, absent procurement of
     a stay of execution, such judgment remains unsatisfied for thirty (30)
     calendar days after the date of entry of judgment, or in any event later
     than five (5) days prior to the date of any proposed sale thereunder; or
     any writ or warrant of attachment or execution or similar process is
     issued or levied against all or any material part of the Property of any
     such Person and is not released, vacated or fully bonded within thirty
     (30) calendar days after its issue or levy; or

          (j)  Any of Borrowers institutes or consents to the institution of
     any proceeding under a Debtor Relief Law relating to it or to all or any
     material part of its Property, or is unable or admits in writing its
     inability to pay its debts as they mature, or makes an assignment for
     the benefit of creditors; or applies for or consents to the appointment
     of any receiver, trustee, custodian, conservator, liquidator,
     rehabilitator or similar officer for it or for all or any material part
     of its Property; or any receiver, trustee, custodian, conservator,
     liquidator, rehabilitator or similar officer is appointed without the
     application or consent of that Person and the appointment continues
     undischarged or unstayed for sixty (60) calendar days; or any proceeding
     under a Debtor Relief Law relating to any such Person or to all or any
     part of its Property is instituted without the consent of that Person
     and continues undismissed or unstayed for sixty (60) calendar days or
     such Person consents thereto or acquiesces therein, or a

                                       -75-

<PAGE>

     decree or order for relief is entered in respect of any such Person in
     such proceeding; or

          (k)  The occurrence of an Event of Default (as such term is or may
     hereafter be specifically defined in any other Loan Document) under any
     other Loan Document; or

          (l)  Any Pension Plan maintained by Borrowers is determined to have
     a material "accumulated funding deficiency" as that term is defined in
     Section 302 of ERISA in excess of an amount equal to 5% of the combined
     total assets of Borrowers as of the most-recently ended Fiscal Quarter;
     or

          (m)  During any twelve (12) consecutive month period, Joel S.
     Marcus shall cease to be the Chief Executive Officer of Parent, and
     either of the following two (2) persons (or any successor who was
     previously approved as provided herein) shall cease to occupy the
     following positions: Peter Nelson shall cease to be the Chief Financial
     Officer of Parent, and Jerry M. Sudarsky shall cease to be the Chairman
     of the Parent; provided that the foregoing shall not constitute an Event
     of Default if a competent and experienced successor for such Person
     shall be approved by the Requisite Banks within six (6) months of such
     event, such approval not to be unreasonably withheld.

     9.2  REMEDIES UPON EVENT OF DEFAULT. Without limiting any other rights or
remedies of the Managing Agent or the Banks provided for elsewhere in this
Agreement, or the other Loan Documents, or by applicable Law, or in equity, or
otherwise:

          (a)  Upon the occurrence, and during the continuance, of any Event
     of Default OTHER THAN an Event of Default described in Section 9.1(J):

               (1)  the Commitments to make Advances and Swing Loans and to
          issue Letters of Credit and all other obligations of the Managing
          Agent or the Banks and all rights of Borrowers and any other
          Parties under the Loan Documents shall be suspended without notice
          to or demand upon Borrowers, which are expressly waived by
          Borrowers, EXCEPT that all of the Banks or the Requisite Banks (as
          the case may be, in accordance with Section 12.1) may waive an
          Event of Default or, without waiving, determine, upon terms and
          conditions satisfactory to the Banks or Requisite Banks, as the
          case may be, to reinstate the Commitments and such other
          obligations and rights and make further Advances and Swing Loans
          and to issue Letters of Credit, which waiver or determination shall
          apply equally to, and shall be binding upon, all the Banks; and

               (2)  the Requisite Banks may request the Managing Agent to,
          and the Managing Agent thereupon shall, terminate the Commitments
          and/or declare all or any part of the unpaid principal of all
          Notes, all interest accrued

                                      -76-

<PAGE>

          and unpaid thereon and all other amounts payable under the Loan
          Documents to be forthwith due and payable, whereupon the same shall
          become and be forthwith due and payable, without protest,
          presentment, notice of dishonor, demand or further notice of any
          kind, all of which are expressly waived by Borrowers.

     (b)  Upon the occurrence of any Event of Default described in
Section 9.1(j):

               (1)  the Commitments to make Advances and Swing Loans and to
          issue Letters of Credit and all other obligations of the Managing
          Agent or the Banks and all rights of Borrowers and any other
          Parties under the Loan Documents shall terminate without notice to
          or demand upon Borrowers, which are expressly waived by Borrowers,
          EXCEPT that all of the Banks or the Requisite Banks (as the case
          may be, in accordance with Section 12.1) may waive the Event of
          Default or, without waiving, determine, upon terms and conditions
          satisfactory to all the Banks, to reinstate the Commitments and
          such other obligations and rights and make further Advances and
          Swing Loans and to issue Letters of Credit, which determination
          shall apply equally to, and shall be binding upon, all the Banks;
          and

               (2)  the unpaid principal of all Notes, all interest accrued
          and unpaid thereon and all other amounts payable under the Loan
          Documents shall be forthwith due and payable, all without protest,
          presentment, notice of dishonor, demand or further notice of any
          kind, all of which are expressly waived by Borrowers.

          (c)  Upon the occurrence of any Event of Default, the Banks and the
     Managing Agent, or any of them through the Managing Agent, without
     notice to (EXCEPT as expressly provided for in any Loan Document) or
     demand upon Borrowers, which are expressly waived by Borrowers (EXCEPT
     as to notices expressly provided for in any Loan Document), may proceed
     (but only with the consent of the Requisite Banks) to protect, exercise
     and enforce their rights and remedies under the Loan Documents against
     Borrowers and any other Party and such other rights and remedies as are
     provided by Law or equity.

          (d)  The order and manner in which the Banks' rights and remedies
     are to be exercised shall be determined by the Requisite Banks in their
     sole discretion, and all payments received by the Managing Agent and the
     Banks, or any of them, shall be applied first to the costs and expenses
     (including reasonable attorneys' fees and disbursements and the
     reasonably allocated costs of attorneys employed by the Managing Agent
     or by any Bank) of the Managing Agent and of the Banks, then to the
     repayment of Swing Loans, and thereafter paid pro rata to the Banks in
     the same proportions that the aggregate Obligations owed to each Bank
     under the Loan Documents bear to the aggregate Obligations owed under
     the Loan Documents to all the

                                      -77-
<PAGE>

     Banks, without priority or preference among the Banks. Regardless of how
     each Bank may treat payments for the purpose of its own accounting, for
     the purpose of computing Borrowers' Obligations hereunder and under the
     Notes, payments shall be applied FIRST, to the costs and expenses of the
     Managing Agent and the Banks, as set forth above, SECOND, to the payment
     of interest and principal (in that order) due on Swing Loans, THIRD, to
     the payment of accrued and unpaid interest due under any Loan Documents
     to and including the date of such application (ratably, and without
     duplication, according to the accrued and unpaid interest due under each
     of the Loan Documents), FOURTH, to the payment of any termination
     payments due from the Borrowers in respect of Swap Agreements, and
     FIFTH, to the payment of all other amounts (including principal and
     fees) then owing to the Managing Agent or the Banks under the Loan
     Documents. No application of payments will cure any Event of Default, or
     prevent acceleration, or continued acceleration, of amounts payable
     under the Loan Documents, or prevent the exercise, or continued
     exercise, of rights or remedies of the Banks hereunder or thereunder or
     at Law or in equity.

          (e)  Upon the occurrence, and during the continuance, of any Event
     of Default, the Borrowers shall at such time deposit in a cash
     collateral account opened by the Managing Agent an amount equal to the
     Letter of Credit Exposure at such time. Each Borrower hereby grants to
     the Managing Agent, for the benefit of the Banks, a security interest in
     such cash collateral to secure all obligations of such Borrower in
     respect of such Letters of Credit under this Agreement and the other
     Loan Documents. The Borrowers shall execute and deliver to the Managing
     Agent, for the account of the Banks, such further documents and
     instruments as the Managing Agent may request to evidence the creation
     and perfection of such security interest in such cash collateral
     account. Amounts held in such cash collateral account shall be applied
     by the Managing Agent to the payment of drafts drawn under such Letters
     of Credit, and the unused portion thereof after all such Letters of
     Credit shall have expired or been fully drawn upon, if any, shall be
     applied to repay other obligations of the Borrowers hereunder and under
     any Notes. After all such Letters of Credit shall have expired or been
     fully drawn upon, all obligations under the Letters of Credit shall have
     been satisfied and all other obligations of the Borrowers hereunder and
     under any Notes shall have been paid in full, the balance, if any, in
     such cash collateral account shall be returned to Borrowers.

                                   Article 10
                               THE MANAGING AGENT

     10.1  APPOINTMENT AND AUTHORIZATION. Subject to Section 10.8, each
Bank hereby irrevocably appoints and authorizes the Managing Agent
to take such action as agent on its behalf and to exercise such powers
under the Loan Documents as are delegated to the Managing Agent by
the terms thereof or are reasonably incidental, as determined by the
Managing Agent, thereto. This appointment and authorization is
intended solely for the purpose of facilitating the servicing of the
Loans and does not constitute appointment of the

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<PAGE>

Managing Agent as trustee for any Bank or as representative of any Bank for
any other purpose and, the Managing Agent shall take such action and
exercise such powers only in an administrative and ministerial capacity.

     10.2 MANAGING AGENT AND AFFILIATES. BankBoston (and each
successor Managing Agent in its individual capacity) has the same rights and
powers under the Loan Documents as any other Bank and may exercise the same as
though it were not the Managing Agent, and the term "Bank" or "Banks" includes
BankBoston in its individual capacity. BankBoston (and each successor Managing
Agent in its individual capacity) and its Affiliates may accept deposits from,
lend money to and generally engage in any kind of banking, trust or other
business with Borrowers, any Subsidiary thereof, or any Affiliate of Borrowers
or any Subsidiary thereof, as if it were not the Managing Agent and without any
duty to account therefor to the Banks. BankBoston (and each successor Managing
Agent in its individual capacity) need not account to any other Bank for any
monies received by it for reimbursement of its costs and expenses as Managing
Agent hereunder, or for any monies received by it in its capacity as a Bank
hereunder, other than as required of any Bank hereunder. The Managing Agent
shall not be deemed to hold a fiduciary or agency relationship with any Bank and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or otherwise exist against the
Managing Agent. The provisions of this Section 10.2 shall apply equally to any
other agents named herein.

     10.3 PROPORTIONATE INTEREST IN ANY COLLATERAL. The Managing
Agent, on behalf of all the Banks, shall hold in accordance with the Loan
Documents all items of any collateral or interests therein received or held by
the Managing Agent. Subject to the Managing Agent's and the Banks' rights to
reimbursement for their costs and expenses hereunder (INCLUDING reasonable
attorneys' fees and disbursements and other professional services and the
reasonably allocated costs of attorneys employed by the Managing Agent or a
Bank) and subject to the application of payments in accordance with Section
9.2(d), each Bank shall have an interest in the Managing Agent's interest in
such collateral or interests therein in the same proportions that the aggregate
Obligations owed such Bank under the Loan Documents bear to the aggregate
Obligations owed under the Loan Documents to all the Banks, without priority or
preference among the Banks.

     10.4 BANKS' CREDIT DECISIONS. Each Bank agrees that it has,
independently and without reliance upon the Managing Agent, any other Bank or
the directors, officers, agents, employees or attorneys of the Managing Agent or
of any other Bank, and instead in reliance upon information supplied to it by or
on behalf of Borrowers and upon such other information as it has deemed
appropriate, made its own independent credit analysis and decision to enter into
this Agreement. Each Bank also agrees that it shall, independently and without
reliance upon the Managing Agent, any other Bank or the directors, officers,
agents, employees or attorneys of the Managing Agent or of any other Bank,
continue to make its own independent credit analyses and decisions in acting or
not acting under the Loan Documents.

                                      -79-
<PAGE>

     10.5  ACTION BY MANAGING AGENT.

          (a)  Absent actual knowledge of the Managing Agent of the
     existence of a Default, the Managing Agent may assume that no Default
     has occurred and is continuing, unless the Managing Agent has received
     notice from Borrowers stating the nature of the Default or has received
     notice from a Bank stating the nature of the Default and that such Bank
     considers the Default to have occurred and to be continuing.

          (b)  The Managing Agent has only those obligations
     under the Loan Documents as are expressly set forth therein.

          (c)  EXCEPT for any obligation expressly set forth in the Loan
     Documents and as long as the Managing Agent may assume that no Default
     has occurred and is continuing, the Managing Agent may, but shall not be
     required to, exercise its discretion to act or not act, EXCEPT that the
     Managing Agent shall be required to comply with the instructions of the
     Requisite Banks (or of all the Banks, to the extent required by Section
     12.1) and those instructions shall be binding upon the Managing Agent
     and all the Banks, PROVIDED that the Managing Agent shall not be
     required to comply with such instructions if to do so would be contrary
     to any Loan Document or to applicable Law or would result, in the
     reasonable judgment of the Managing Agent, in substantial risk of
     liability to the Managing Agent.

          (d)  If the Managing Agent has received a notice specified in
     clause (a) or has actual knowledge of the existence of a Default, the
     Managing Agent shall immediately give notice thereof to the Banks and
     shall comply with the instructions of the Requisite Banks (or of all the
     Banks, to the extent required by Section 12.1), PROVIDED that the
     Managing Agent shall not be required to comply with such instructions if
     to do so would be contrary to any Loan Document or to applicable Law or
     would result, in the reasonable judgment of the Managing Agent, in
     substantial risk of liability to the Managing Agent, and EXCEPT that if
     the Requisite Banks (or all the Banks, if required under Section 12.1)
     fail, for five (5) Banking Days after the receipt of notice from the
     Managing Agent, to instruct the Managing Agent, then the Managing Agent,
     in its sole discretion, may act or not act as it deems advisable for the
     protection of the interests of the Banks.

     10.6 LIABILITY OF MANAGING AGENT. Neither the Managing Agent
nor any of its directors, officers, agents, employees or attorneys shall be
liable for any action taken or not taken by them under or in connection with the
Loan Documents, EXCEPT for their own gross negligence or willful misconduct.
Without limitation on the foregoing, the Managing Agent and its directors,
officers, agents, employees and attorneys:

          (a) May treat the payee of any Note as the holder thereof
     until the Managing Agent receives notice of the assignment or transfer
     thereof, in form satisfactory to the Managing Agent, signed by the
     payee, and may treat each Bank as

                                      -80-
<PAGE>

     the owner of that Bank's interest in the Obligations for
     all purposes of this Agreement until the Managing Agent
     receives notice of the assignment or transfer thereof, in form
     satisfactory to the Managing Agent, signed by that Bank;

          (b) May consult with legal counsel (INCLUDING in-house legal
     counsel), accountants (INCLUDING in-house accountants) and other
     professionals or experts selected by it, or with legal counsel,
     accountants or other professionals or experts for Borrowers and/or their
     Subsidiaries or the Banks, and shall not be liable for any action taken
     or not taken by it in good faith in accordance with any advice of such
     legal counsel, accountants or other professionals or experts;

          (c) Shall not be responsible to any Bank for any
     statement, warranty or representation made in any of the Loan Documents
     or in any notice, certificate, report, request or other statement
     (written or oral) given or made in connection with any of the Loan
     Documents;

          (d) Shall have no duty to ask or inquire as to the performance
     or observance by Borrowers or its Subsidiaries of any of the terms,
     conditions or covenants of any of the Loan Documents or to inspect
     any collateral or any Property, books or records of Borrowers or
     their Subsidiaries;

          (e) Will not be responsible to any Bank for the due
     execution, legality, validity, enforceability, genuineness,
     effectiveness, sufficiency or value of any Loan Document, any other
     instrument or writing furnished pursuant thereto or in connection
     therewith, or any collateral;

          (f) Will not incur any liability by acting or not acting in
     reliance upon any Loan Document, notice, consent, certificate,
     statement, request or other instrument or writing believed in good
     faith by it to be genuine and signed or sent by the proper party or
     parties;

          (g) Will not incur any liability for any arithmetical error in
     computing any amount paid or payable by the Borrowers or any
     Subsidiary or Affiliate thereof or paid or payable to or received or
     receivable from any Bank under any Loan Document, INCLUDING, without
     limitation, principal, interest, commitment fees, Advances and other
     amounts; PROVIDED that, promptly upon discovery of such an error in
     computation, the Managing Agent, the Banks and (to the extent
     applicable) Borrowers and/or their Subsidiaries or Affiliates shall
     make such adjustments as are necessary to correct such error and to
     restore the parties to the position that they would have occupied had
     the error not occurred; and

          (h) Have not made nor do they now make any representations or
     warranties, express or implied, nor does it assume any liability to
     the Banks, with respect to the creditworthiness or financial
     condition of the Borrowers, their respective

                                      -81-

<PAGE>

     partners or members or any of their respective Subsidiaries, the
     value of their respective assets or the collectability of the Loans.

     10.7 INDEMNIFICATION. Each Bank shall, ratably in accordance
with its Pro Rata Share of the Commitments (if the Commitments are then in
effect) or in accordance with its proportion of the aggregate Indebtedness then
evidenced by the Notes (if the Commitments have then been terminated), indemnify
and hold the Managing Agent and its directors, officers, agents, employees and
attorneys harmless against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever (INCLUDING reasonable attorneys' fees and
disbursements and allocated costs of attorneys employed by the Managing Agent)
that may be imposed on, incurred by or asserted against it or them in any way
relating to or arising out of the Loan Documents (other than losses incurred by
reason of the failure of Borrowers to pay the Indebtedness represented by the
Notes) or any action taken or not taken by it as Managing Agent thereunder,
EXCEPT such as result from its own gross negligence or willful misconduct.
Without limitation on the foregoing, each Bank shall reimburse the Managing
Agent upon demand for that Bank's Pro Rata Share of any out-of-pocket cost or
expense incurred by the Managing Agent in connection with the negotiation,
preparation, execution, delivery, amendment, waiver, restructuring,
reorganization (INCLUDING a bankruptcy reorganization), enforcement or attempted
enforcement of the Loan Documents, to the extent that any Borrower or any other
Party is required by Section 11.3 to pay that cost or expense but fails to do so
upon demand. Nothing in this Section 10.7 shall entitle the Managing Agent or
any indemnitee referred to above to recover any amount from the Banks if and to
the extent that such amount has theretofore been recovered from Borrowers or any
of their Subsidiaries. To the extent that the Managing Agent or any indemnitee
referred to above is later reimbursed such amount by Borrowers or any of its
Subsidiaries, it shall return the amounts paid to it by the Banks in respect of
such amount.

     10.8 SUCCESSOR MANAGING AGENT. The Managing Agent may, and at
the request of the Requisite Banks shall, resign as Managing Agent upon
reasonable notice to the Banks and Borrowers effective upon acceptance of
appointment by a successor Managing Agent. If the Managing Agent shall resign as
Managing Agent under this Agreement, the Requisite Banks shall appoint from
among the Banks a successor Managing Agent for the Banks, which successor
Managing Agent shall be approved by Borrowers so long as no Default or Event of
Default has occurred and is continuing (and such approval shall not be
unreasonably withheld or delayed). If no successor Managing Agent is appointed
prior to the effective date of the resignation of the Managing Agent, the
Managing Agent may appoint, after consulting with the Banks and, so long as no
Default or Event of Default has occurred and is continuing the Borrowers, a
successor Managing Agent from among the Banks. Upon the acceptance of its
appointment as successor Managing Agent hereunder, such successor Managing Agent
shall succeed to all the rights, powers and duties of the retiring Managing
Agent and the term "Managing Agent" shall mean such successor Managing Agent and
the retiring Managing Agent's appointment, powers and duties as Managing Agent
shall be terminated. After any retiring Managing Agent's resignation hereunder
as Managing Agent, the provisions of this ARTICLE 10, and Sections 11.3, 11.11
and 11.22, shall inure to its benefit

                                      -82-
<PAGE>

as to any actions taken or omitted to be taken by it while it was Managing
Agent under this Agreement. Notwithstanding the foregoing, if (a) the
Managing Agent has not been paid its agency fees under Section 3.5 or
has not been reimbursed for any expense reimbursable to it under Section
11.3, in either case for a period of at least one (1) year and (b) no
successor Managing Agent has accepted appointment as Managing Agent by
the date which is thirty (30) days following a retiring Managing Agent's
notice of resignation, the retiring Managing Agent's resignation shall
nevertheless thereupon become effective and the Banks shall perform all
of the duties of the Managing Agent hereunder until such time, if any,
as the Requisite Banks appoint a successor Managing Agent as provided
for above.

     10.9 NO OBLIGATIONS OF BORROWERS. Nothing contained in this
Article 10 shall be deemed to impose upon Borrowers any obligation in respect of
the due and punctual performance by the Managing Agent of its obligations to the
Banks under any provision of this Agreement, and Borrowers shall have no
liability to the Managing Agent or any of the Banks in respect of any failure by
the Managing Agent or any Bank to perform any of its obligations to the Managing
Agent or the Banks under this Agreement. Without limiting the generality of the
foregoing, where any provision of this Agreement relating to the payment of any
amounts due and owing under the Loan Documents provides that such payments shall
be made by Borrowers to the Managing Agent for the account of the Banks,
Borrowers' obligations to the Banks in respect of such payments shall be deemed
to be satisfied upon the making of such payments to the Managing Agent in the
manner provided by this Agreement.

                                   Article 11
                                  MISCELLANEOUS

     11.1 CUMULATIVE REMEDIES; NO WAIVER. The rights, powers,
privileges and remedies of the Managing Agent and the Banks provided herein or
in any Note or other Loan Document are cumulative and not exclusive of any
right, power, privilege or remedy provided by Law or equity. No failure or delay
on the part of the Managing Agent or any Bank in exercising any right, power,
privilege or remedy may be, or may be deemed to be, a waiver thereof; nor may
any single or partial exercise of any right, power, privilege or remedy preclude
any other or further exercise of the same or any other right, power, privilege
or remedy. The terms and conditions of ARTICLE 8 hereof are inserted for the
sole benefit of the Managing Agent and the Banks; the same may be waived in
whole or in part, with or without terms or conditions, in respect of any Loan
without prejudicing the Managing Agent's or the Banks' rights to assert them in
whole or in part in respect of any other Loan.

     11.2  [INTENTIONALLY OMITTED].

     11.3 COSTS, EXPENSES AND TAXES. Borrowers shall pay within
five (5) Banking Days after demand, accompanied by an invoice therefor, the
reasonable costs and expenses of the Managing Agent in connection with the
negotiation, preparation, syndication, execution, delivery and interpretation of
the Loan Documents and any amendment thereto or waiver thereof. Borrowers shall
also pay on demand, accompanied by an invoice therefor, the reasonable

                                      -83-

<PAGE>

costs and expenses of the Managing Agent and the Banks in connection with
the refinancing, restructuring, reorganization (INCLUDING a bankruptcy
reorganization) and enforcement or attempted enforcement of the Loan
Documents, and any matter related thereto. The foregoing costs and
xpenses shall include filing fees, recording fees, title insurance
fees, appraisal fees, search fees, and other out-of-pocket expenses and
the reasonable fees and out-of-pocket expenses of any legal counsel
(INCLUDING reasonably allocated costs of legal counsel employed by the
Managing Agent or any Bank), independent public accountants and other
outside experts retained by the Managing Agent or any Bank, whether or
not such costs and expenses are incurred or suffered by the Managing
Agent or any Bank in connection with or during the course of any
bankruptcy or insolvency proceedings of any of Borrowers or any
Subsidiary thereof. Borrowers shall pay any and all documentary and
other taxes, EXCLUDING (i) taxes imposed on or measured in whole or in
part by any Bank's overall net income imposed on such Bank by (A) any
jurisdiction (or political subdivision thereof) in which such Bank is
organized or maintains its principal office or LIBOR Lending Office or
(B) any jurisdiction (or political subdivision thereof) in which such
Bank is "doing business" or (ii) any withholding taxes or other taxes
based on gross income imposed by the United States of America for any
period with respect to which any Bank has failed to provide Borrowers
with the appropriate form or forms required by Section 11.21, to the
extent such forms are then required by applicable Laws, and all costs,
expenses, fees and charges payable or determined to be payable in
connection with the filing or recording of this Agreement, any other
Loan Document or any other instrument or writing to be delivered
hereunder or thereunder, or in connection with any transaction pursuant
hereto or thereto, and shall reimburse, hold harmless and indemnify on
the terms set forth in 11.11 the Managing Agent and the Banks from and
against any and all loss, liability or legal or other expense with
respect to or resulting from any delay in paying or failure to pay any
such tax, cost, expense, fee or charge or that any of them may suffer or
incur by reason of the failure of any Party to perform any of its
Obligations. Any amount payable to the Managing Agent or any Bank under
this Section 11.3 shall bear interest from the fifth Banking Day
following the date of demand for payment at the Default Rate.

     11.4 NATURE OF BANKS' OBLIGATIONS. The obligations of the
Banks hereunder are several and not joint or joint and several. Nothing
contained in this Agreement or any other Loan Document and no action taken by
the Managing Agent or the Banks or any of them pursuant hereto or thereto may,
or may be deemed to, make the Banks a partnership, an association, a joint
venture or other entity, either among themselves or with the Borrowers or any
Affiliate of any of Borrowers. A default by any Bank will not increase the Pro
Rata Share of the Commitments attributable to any other Bank. Any Bank not in
default may, if it desires, assume in such proportion as the nondefaulting Banks
agree the obligations of any Bank in default, but is not obligated to do so. The
Managing Agent agrees that it will use reasonable best efforts either to induce
the other Banks to assume the obligations of a Bank in default or to obtain
another Bank, reasonably satisfactory to Borrowers, to replace such a Bank in
default. A defaulting Bank's right to participate in the administration of the
Loan Documents, including, without limitation, any rights to consent to or
direct any action or inaction of the Managing Agent or to vote on any matter
presented to the Banks shall be suspended during the pendency of such Bank's
default.

                                      -84-

<PAGE>

     11.5 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties contained herein or in any other Loan Document,
or in any certificate or other writing delivered by or on behalf of any one or
more of the Parties to any Loan Document, will survive the making of the Loans
hereunder and the execution and delivery of the Notes, and have been or will be
relied upon by the Managing Agent and each Bank, notwithstanding any
investigation made by the Managing Agent or any Bank or on their behalf.

     11.6 NOTICES. EXCEPT as otherwise expressly provided in the
Loan Documents, all notices, requests, demands, directions and other
communications provided for hereunder or under any other Loan Document must be
in writing and must be mailed, telegraphed, telecopied, dispatched by commercial
courier or delivered to the appropriate party at the address set forth on the
signature pages of this Agreement or other applicable Loan Document or, as to
any party to any Loan Document, at any other address as may be designated by it
in a written notice sent to all other parties to such Loan Document in
accordance with this Section. EXCEPT as otherwise expressly provided in any Loan
Document, if any notice, request, demand, direction or other communication
required or permitted by any Loan Document is given by mail it will be effective
on the earlier of receipt or the fourth Banking Day after deposit in the United
States mail with first class or airmail postage prepaid; if given by telegraph
or cable, when delivered to the telegraph company with charges prepaid; if given
by telecopier, when sent; if dispatched by commercial courier, on the scheduled
delivery date; or if given by personal delivery, when delivered.

     11.7 EXECUTION OF LOAN DOCUMENTS. Unless the Managing Agent
otherwise specifies with respect to any Loan Document, (a) this Agreement and
any other Loan Document may be executed in any number of counterparts and any
party hereto or thereto may execute any counterpart, each of which when executed
and delivered will be deemed to be an original and all of which counterparts of
this Agreement or any other Loan Document, as the case may be, when taken
together will be deemed to be but one and the same instrument and (b) execution
of any such counterpart may be evidenced by a telecopier transmission of the
signature of such party. The execution of this Agreement or any other Loan
Document by any party hereto or thereto will not become effective until
counterparts hereof or thereof, as the case may be, have been executed by all
the parties hereto or thereto.

     11.8  BINDING EFFECT; ASSIGNMENT.

          (a) This Agreement and the other Loan Documents to which
     Borrowers are a Party will be binding upon and inure to the benefit of
     Borrowers, the Managing Agent, each of the Banks, and their respective
     successors and assigns, EXCEPT that Borrowers may not assign their
     rights hereunder or thereunder or any interest herein or therein without
     the prior written consent of all the Banks. Each Bank represents that
     it is not acquiring its Note with a view to the distribution thereof within
     the meaning of the Securities Act of 1933, as amended (subject to any
     requirement that disposition of such Note must be within the control of
     such Bank). Any Bank may at any time pledge its Note or any other
     instrument evidencing its rights as a Bank under this Agreement to a
     Federal Reserve Bank, but no such pledge shall release that Bank

                                      -85-

<PAGE>

     from its obligations hereunder or grant to such Federal Reserve Bank the
     rights of a Bank hereunder absent foreclosure of such pledge.

          (b) From time to time following the Closing Date, each Bank
     may assign to one or more Eligible Assignees all or any portion of its
     Pro Rata Share of the Commitments; PROVIDED that (i) such Eligible
     Assignee, if not then a Bank or an Affiliate of the assigning Bank,
     shall be approved by the Managing Agent and (if no Event of Default then
     exists) Borrowers (neither of which approvals shall be unreasonably
     withheld or delayed), (ii) such assignment shall be evidenced by a
     Commitments Assignment and Acceptance, a copy of which together with any
     Notes subject to such assignment shall be furnished to the Managing
     Agent as hereinbelow provided, (iii) EXCEPT in the case of an assignment
     to an Affiliate of the assigning Bank, to another Bank or of the entire
     remaining Commitments of the assigning Bank, the assignment shall not
     assign a Pro Rata Share of the Commitments that is equivalent to less
     than $10,000,000, (iv) the assignment shall be of a constant, and not a
     varying, percentage of the Assignor's rights and obligations under this
     Agreement, and (v) the effective date of any such assignment shall be as
     specified in the Commitments Assignment and Acceptance, but not earlier
     than the date which is five (5) Banking Days after the date the Managing
     Agent has received the Commitments Assignment and Acceptance unless
     otherwise agreed by the Managing Agent. In connection with such
     assignment, the assignor may assign all or any portion of its
     Competitive Advance Note and the Competitive Advances at the time owing
     to it, which, if so assigned, shall be assigned in such proportion as
     the assignor and assignee agree, but in no event shall the assignee
     acquire an interest in the Competitive Advances of the assignor of less
     than $5,000,000.00. Upon the effective date of such Commitments
     Assignment and Acceptance, the Eligible Assignee named therein shall be
     a Bank for all purposes of this Agreement, with the Pro Rata Share of
     the Commitments therein set forth and, to the extent of such Pro Rata
     Share, the assigning Bank shall be released from its further obligations
     under this Agreement. Borrowers agree that they shall execute and
     deliver (against delivery by the assigning Bank to Borrowers of its
     Note) to such assignee Bank, Notes evidencing that assignee Bank's Pro
     Rata Share of the Commitments, and to the assigning Bank, Notes
     evidencing the remaining balance Pro Rata Share retained by the
     assigning Bank. In the event that no portion of a Competitive Advance is
     assigned to such assignee, the Borrowers shall upon the request of such
     assignee execute and deliver to such assignee a Competitive Advance
     Note, dated the effective date of such assignment and which shall
     otherwise be in substantially the form of the Competitive Advance Notes.

          (c) By executing and delivering a Commitments Assignment and
     Acceptance, the Eligible Assignee thereunder acknowledges and agrees
     that: (i) other than the representation and warranty of the assigning
     Bank that it is the legal and beneficial owner of the Pro Rata Share of
     the Commitments being assigned thereby free and clear of any adverse
     claim, neither the assigning Bank nor the Managing Agent has made any
     representation or warranty and assumes no responsibility with respect to
     any statements, warranties or representations made in or in connection
     with

                                      -86-

<PAGE>

     this Agreement or the execution, legality, validity, enforceability,
     genuineness or sufficiency of this Agreement or any other Loan
     Document; (ii) neither the assigning Bank nor the Managing Agent
     has made any representation or warranty and assumes no
     responsibility with respect to the financial condition of Borrowers or
     the performance by Borrowers of the Obligations; (iii) it has
     received a copy of this Agreement, together with copies of the most
     recent financial statements delivered pursuant to Section 7.1 and
     such other documents and information as it has deemed appropriate
     to make its own credit analysis and decision to enter into such
     Commitments Assignment and Acceptance; (iv) it will, independently
     and without reliance upon the Managing Agent or any Bank and based
     on such documents and information as it shall deem appropriate at
     the time, continue to make its own credit decisions in taking or
     not taking action under this Agreement; (v) it appoints and
     authorizes the Managing Agent to take such action and to exercise
     such powers under this Agreement as are delegated to the Managing
     Agent by this Agreement; and (vi) it will perform in accordance
     with their terms all of the obligations which by the terms of this
     Agreement are required to be performed by it as a Bank.

          (d) The Managing Agent shall maintain at the Managing Agent's
     Office a copy of each Commitments Assignment and Acceptance delivered to
     it and a register (the "Register") of the names and address of each of
     the Banks and the Pro Rata Share of the Commitments held by each Bank,
     giving effect to each Commitments Assignment and Acceptance. The
     Register shall be available during normal business hours for inspection
     by Borrowers or any Bank upon reasonable prior notice to the Managing
     Agent. After receipt of a completed Commitments Assignment and
     Acceptance executed by any Bank and an Eligible Assignee and the Notes
     subject to such assignment, and receipt of an assignment fee of $2,500
     from such Bank or Eligible Assignee, the Managing Agent shall, promptly
     following the effective date thereof, provide to Borrowers and the Banks
     a revised SCHEDULE 1.1 giving effect thereto. Borrowers, the Managing
     Agent and the Banks shall deem and treat the Persons listed as Banks in
     the Register as the holders and owners of the Pro Rata Share of the
     Commitments listed therein for all purposes hereof, and no assignment or
     transfer of any such Pro Rata Share of the Commitments shall be
     effective, in each case unless and until a Commitments Assignment and
     Acceptance effecting the assignment or transfer thereof shall have been
     accepted by the Managing Agent and recorded in the Register as provided
     above. Prior to such recordation, all amounts owed with respect to the
     applicable Pro Rata Share of the Commitments shall be owed to the Bank
     listed in the Register as the owner thereof, and any request, authority
     or consent of any Person who, at the time of making such request or
     giving such authority or consent, is listed in the Register as a Bank
     shall be conclusive and binding on any subsequent holder, assignee or
     transferee of the corresponding Pro Rata Share of the Commitments.

          (e) Each Bank may from time to time grant participations to
     one or more banks or other financial institutions (INCLUDING another
     Bank but EXCLUDING an Employee Plan) in a portion of its Pro Rata Share
     of the Commitments; PROVIDED,

                                      -87-

<PAGE>

     HOWEVER, that (i) such Bank's obligations under this Agreement
     shall remain unchanged, (ii) such Bank shall remain solely
     responsible to the other parties hereto for the performance of such
     obligations, (iii) the participating banks or other financial
     institutions shall not be a Bank hereunder for any purpose EXCEPT, if
     the participation agreement so provides, for the purposes of Sections
     3.7, 3.8, 11.11 and 11.22 but only to the extent that the cost of
     such benefits to Borrowers does not exceed the cost which Borrowers
     would have incurred in respect of such Bank absent the
     participation, (iv) Borrowers, the Managing Agent and the other
     Banks shall continue to deal solely and directly with such Bank in
     connection with such Bank's rights and obligations under this
     Agreement, (v) the participation interest shall be expressed as a
     percentage of the granting Bank's Pro Rata Share of the Commitments
     as it then exists and shall not afford such participant any rights
     or privileges under the Loan Documents except as provided in clause
     (iii) above.

     11.9 RIGHT OF SETOFF. If an Event of Default has occurred and
is continuing, the Managing Agent or any Bank (but in each case only with the
consent of the Requisite Banks and subject to the provisions of Section 11.10)
may exercise its rights under Article 9 of the Uniform Commercial Code and other
applicable Laws and, to the extent permitted by applicable Laws, apply any funds
in any deposit account maintained with it by Borrowers and/or any Property of
Borrowers in its possession against the Obligations.

     11.10 SHARING OF SETOFFS. Each Bank severally agrees that if
it, through the exercise of any right of setoff, banker's lien or counterclaim
against Borrowers, or otherwise, receives payment of the Obligations held by it
that is ratably more than any other Bank, through any means, receives in payment
of the Obligations held by that Bank, then, subject to applicable Laws: (a) the
Bank exercising the right of setoff, banker's lien or counterclaim or otherwise
receiving such payment shall purchase, and shall be deemed to have
simultaneously purchased, from each of the other Banks a participation in the
Obligations held by the other Banks and shall pay to the other Banks a purchase
price in an amount so that the share of the Obligations held by each Bank after
the exercise of the right of setoff, banker's lien or counterclaim or receipt of
payment shall be in the same proportion that existed prior to the exercise of
the right of setoff, banker's lien or counterclaim or receipt of payment; and
(b) such other adjustments and purchases of participations shall be made from
time to time as shall be equitable to ensure that all of the Banks share any
payment obtained in respect of the Obligations ratably in accordance with each
Bank's share of the Obligations immediately prior to, and without taking into
account, the payment; PROVIDED that, if all or any portion of a disproportionate
payment obtained as a result of the exercise of the right of setoff, banker's
lien, counterclaim or otherwise is thereafter recovered from the purchasing Bank
by Borrowers or any Person claiming through or succeeding to the rights of
Borrowers, the purchase of a participation shall be rescinded and the purchase
price thereof shall be restored to the extent of the recovery, but without
interest (unless the Bank from which such payment is recovered is required to
pay interest thereon, in which case each Bank returning funds to such Bank shall
pay its pro rata share of such interest). Each Bank that purchases a
participation in the Obligations pursuant to this Section 11.10 shall from and
after the purchase have the right to give all notices, requests, demands,
directions and other

                                      -88-

<PAGE>

communications under this Agreement with respect to the portion of the
Obligations purchased to the same extent as though the purchasing Bank
were the original owner of the Obligations purchased. Borrowers
expressly consent to the foregoing arrangements and agree that any Bank
holding a participation in an Obligation so purchased pursuant to
this Section 11.10 may exercise any and all rights of setoff,
banker's lien or counterclaim with respect to the participation as
fully as if the Bank were the original owner of the Obligation
purchased.

     11.11 INDEMNITY BY BORROWERS. Borrowers agree to indemnify,
save and hold harmless the Managing Agent and each Bank and their respective
directors, officers, agents, attorneys and employees (collectively the
"INDEMNITEES") from and against: (a) any and all claims, demands, actions or
causes of action (EXCEPT a claim, demand, action, or cause of action for any
amount excluded from the definition of "Taxes" in Section 3.12(d)) if the claim,
demand, action or cause of action arises out of or relates to any act or
omission (or alleged act or omission) of Borrowers, their Affiliates or any of
their officers, directors or stockholders relating to the Commitments, the use
or contemplated use of proceeds of any Loan or any Letter of Credit, or the
relationship of Borrowers and the Banks under this Agreement; (b) any
administrative or investigative proceeding by any Governmental Agency arising
out of or related to a claim, demand, action or cause of action described in
clause (a) above; and (c) any and all liabilities, losses, costs or expenses
(INCLUDING reasonable attorneys' fees and the reasonably allocated costs of
attorneys employed by any Indemnitee and disbursements of such attorneys and
other professional services) that any Indemnitee suffers or incurs as a result
of the assertion of any foregoing claim, demand, action or cause of action;
PROVIDED that no Indemnitee shall be entitled to indemnification for any loss
caused by its own gross negligence or willful misconduct or for any loss
asserted against it by another Indemnitee. If any claim, demand, action or cause
of action is asserted against any Indemnitee, such Indemnitee shall promptly
notify Borrowers, but the failure to so promptly notify Borrowers shall not
affect Borrowers' obligations under this Section unless such failure materially
prejudices Borrowers' right to participate in the contest of such claim, demand,
action or cause of action, as hereinafter provided. Such Indemnitee may (and
shall, if requested by Borrowers in writing) contest the validity, applicability
and amount of such claim, demand, action or cause of action and shall permit
Borrowers to participate in such contest. Any Indemnitee that proposes to settle
or compromise any claim or proceeding for which Borrowers may be liable for
payment of indemnity hereunder shall give Borrowers written notice of the terms
of such proposed settlement or compromise reasonably in advance of settling or
compromising such claim or proceeding and shall obtain Borrowers' prior consent
(which shall not be unreasonably withheld or delayed). In connection with any
claim, demand, action or cause of action covered by this Section 11.11 against
more than one Indemnitee, all such Indemnitees shall be represented by the same
legal counsel (which may be a law firm engaged by the Indemnitees or attorneys
employed by an Indemnitee or a combination of the foregoing) selected by the
Indemnitees and reasonably acceptable to Borrowers; PROVIDED, that if such legal
counsel determines in good faith that representing all such Indemnitees would or
could result in a conflict of interest under Laws or ethical principles
applicable to such legal counsel or that a defense or counterclaim is available
to an Indemnitee that is not available to all such Indemnitees, then to the
extent reasonably necessary to avoid such a conflict of interest or to

                                      -89-
<PAGE>

permit unqualified assertion of such a defense or counterclaim, each affected
Indemnitee shall be entitled to separate representation by legal counsel
selected by that Indemnitee and reasonably acceptable to Borrowers, with all
such legal counsel using reasonable efforts to avoid unnecessary duplication
of effort by counsel for all Indemnitees; and FURTHER PROVIDED that the
Managing Agent (as an Indemnitee) shall at all times be entitled to
representation by separate legal counsel (which may be a law firm or
attorneys employed by the Managing Agent or a combination of the foregoing).
Any obligation or liability of Borrowers to any Indemnitee under this Section
11.11 shall survive the expiration or termination of this Agreement and the
repayment of all Loans and the payment and performance of all other
Obligations owed to the Banks.

                  11.12  NONLIABILITY OF THE BANKS. Borrowers acknowledge and
agree that:

                         (a)  Any inspections of any Property of Borrowers
         made by or through the Managing Agent or the Banks are for purposes
         of administration of the Loan only and Borrowers are not entitled to
         rely upon the same (whether or not such inspections are at the
         expense of Borrowers);

                         (b)  By accepting or approving anything required to
         be observed, performed, fulfilled or given to the Managing Agent or
         the Banks pursuant to the Loan Documents, neither the Managing Agent
         nor the Banks shall be deemed to have warranted or represented the
         sufficiency, legality, effectiveness or legal effect of the same, or
         of any term, provision or condition thereof, and such acceptance or
         approval thereof shall not constitute a warranty or representation
         to anyone with respect thereto by the Managing Agent or the Banks;

                         (c)  The relationship between Borrowers and the
         Managing Agent and the Banks is, and shall at all times remain, solely
         that of borrowers and lenders; neither the Managing Agent nor the Banks
         shall under any circumstance be construed to be partners or joint
         venturers of Borrowers or their Affiliates; neither the Managing Agent
         nor the Banks shall under any circumstance be deemed to be in a
         relationship of confidence or trust or a fiduciary relationship with
         Borrowers or their Affiliates, or to owe any fiduciary duty to
         Borrowers or their Affiliates; neither the Managing Agent nor the Banks
         undertake or assume any responsibility or duty to Borrowers or their
         Affiliates to select, review, inspect, supervise, pass judgment upon or
         inform Borrowers or their Affiliates of any matter in connection with
         their Property or the operations of Borrowers or their Affiliates;
         Borrowers and their Affiliates shall rely entirely upon their own
         judgment with respect to such matters; and any review, inspection,
         supervision, exercise of judgment or supply of information undertaken
         or assumed by the Managing Agent or the Banks in connection with such
         matters is solely for the protection of the Managing Agent and the
         Banks and neither Borrowers nor any other Person is entitled to rely
         thereon; and

                         (d)  The Managing Agent and the Banks shall not be
         responsible or liable to any Person for any loss, damage, liability
         or claim of any kind relating to

                                     -90-
<PAGE>

         injury or death to Persons or damage to Property caused by the
         actions, inaction or negligence of Borrowers and/or its Affiliates
         and Borrowers hereby indemnify and hold the Managing Agent and the
         Banks harmless on the terms set forth in Section 11.11 from any such
         loss, damage, liability or claim.

                  11.13  NO THIRD PARTIES BENEFITTED. This Agreement is made
for the purpose of defining and setting forth certain obligations, rights and
duties of Borrowers, the Managing Agent and the Banks in connection with the
Loans, and is made for the sole benefit of Borrowers, the Managing Agent and
the Banks, and the Managing Agent's and the Banks' successors and assigns.
EXCEPT as provided in Sections 11.8 and 11.11, no other Person shall have any
rights of any nature hereunder or by reason hereof.

                  11.14  CONFIDENTIALITY. Each Bank agrees to hold any
confidential information that it may receive from Borrowers pursuant to this
Agreement in confidence, EXCEPT for disclosure: (a) to other Banks; (b) to
legal counsel and accountants for Borrowers or any Bank; (c) to other
professional advisors to Borrowers or any Bank, provided that the recipient
has accepted such information subject to a confidentiality agreement
substantially similar to this Section 11.14; (d) to regulatory officials
having jurisdiction over that Bank; (e) as required by Law or legal process,
provided that each Bank agrees to notify Borrowers of any such disclosures
unless prohibited by applicable Laws, or in connection with any legal
proceeding to which that Bank and any of Borrowers are adverse parties; and
(f) to another financial institution in connection with a disposition or
proposed disposition to that financial institution of all or part of that
Bank's interests hereunder or a participation interest in its Notes, provided
that the recipient has accepted such information subject to a confidentiality
agreement substantially similar to this Section 11.14. For purposes of the
foregoing, "confidential information" shall mean any information respecting
Parent or its Subsidiaries that when delivered to the Managing Agent or the
Banks is clearly marked by Borrowers to be confidential, OTHER THAN (i)
information previously filed with any Governmental Agency and available to
the public, (ii) information previously published in any public medium from a
source other than, directly or indirectly, that Bank, and (iii) information
previously disclosed by Borrowers to any Person not associated with Borrowers
which does not owe a professional duty of confidentiality to Borrowers or
which has not executed an appropriate confidentiality agreement with
Borrowers. Nothing in this Section shall be construed to create or give rise
to any fiduciary duty on the part of the Managing Agent or the Banks to
Borrowers.

                  11.15  FURTHER ASSURANCES. Borrowers shall, at their expense
and without expense to the Banks or the Managing Agent, do, execute and
deliver such further acts and documents as the Requisite Banks or the
Managing Agent from time to time reasonably require for the assuring and
confirming unto the Banks or the Managing Agent of the rights hereby created
or intended now or hereafter so to be, or for carrying out the intention or
facilitating the performance of the terms of any Loan Document.

                  11.16  INTEGRATION. This Agreement, together with the other
Loan Documents and the letter agreement referred to in Section 11.3,
comprises the complete and integrated agreement of the parties on the subject
matter hereof and supersedes all prior agreements,

                                     -91-
<PAGE>

written or oral, on the subject matter hereof. In the event of any conflict
between the provisions of this Agreement and those of any other Loan
Document, the provisions of this Agreement shall control and govern; PROVIDED
that the inclusion of supplemental rights or remedies in favor of the
Managing Agent or the Banks in any other Loan Document shall not be deemed a
conflict with this Agreement. Each Loan Document was drafted with the joint
participation of the respective parties thereto and shall be construed
neither against nor in favor of any party, but rather in accordance with the
fair meaning thereof.

                  11.17  GOVERNING LAW. EXCEPT to the extent otherwise
provided therein, each Loan Document shall be governed by, and construed and
enforced in accordance with, the Laws of California applicable to contracts
made and performed in California.

                  11.18  SEVERABILITY OF PROVISIONS. Any provision in any
Loan Document that is held to be inoperative, unenforceable or invalid as to
any party or in any jurisdiction shall, as to that party or jurisdiction, be
inoperative, unenforceable or invalid without affecting the remaining
provisions or the operation, enforceability or validity of that provision as
to any other party or in any other jurisdiction, and to this end the
provisions of all Loan Documents are declared to be severable.

                  11.19  HEADINGS. Article and Section headings in this
Agreement and the other Loan Documents are included for convenience of
reference only and are not part of this Agreement or the other Loan Documents
for any other purpose.

                  11.20  TIME OF THE ESSENCE. Time is of the essence of the
Loan Documents.

                  11.21  FOREIGN BANKS AND PARTICIPANTS. Each Bank that is
incorporated or otherwise organized under the Laws of a jurisdiction other
than the United States of America or any State thereof or the District of
Columbia shall deliver to Borrowers (with a copy to the Managing Agent), on
or before the Closing Date (or on or before accepting an assignment or
receiving a participation interest herein pursuant to Section 11.8, if
applicable) two duly completed copies, signed by a Responsible Official, of
either Form 1098 W8-BEN (relating to such Bank and entitling it to a complete
exemption from withholding on all payments to be made to such Bank by
Borrowers pursuant to this Agreement) or Form 1098 W8-ECI (relating to all
payments to be made to such Bank by the Borrowers pursuant to this Agreement)
of the United States Internal Revenue Service or such other evidence
(INCLUDING, if reasonably necessary, Form W-9) satisfactory to Borrowers and
the Managing Agent that no withholding under the federal income tax laws is
required with respect to such Bank. Thereafter and from time to time, each
such Bank shall (a) promptly submit to Borrowers (with a copy to the Managing
Agent), such additional duly completed and signed copies of one of such forms
(or such successor forms as shall be adopted from time to time by the
relevant United States taxing authorities) as may then be available under
then current United States laws and regulations to avoid, or such evidence as
is satisfactory to Borrowers and the Managing Agent of any available
exemption from, United States withholding taxes in respect of all payments to
be made to such Bank by Borrowers pursuant to this Agreement and (b) take
such steps as shall not be materially disadvantageous to it, in the
reasonable judgment of such Bank, and as

                                     -92-
<PAGE>

may be reasonably necessary (including the re-designation of its LIBOR
Lending Office, if any) to avoid any requirement of applicable Laws that
Borrowers make any deduction or withholding for taxes from amounts payable to
such Bank. In the event that Borrowers or the Managing Agent become aware
that a participation has been granted pursuant to Section 11.8(e) to a
financial institution that is incorporated or otherwise organized under the
Laws of a jurisdiction other than the United States of America, any State
thereof or the District of Columbia, then, upon request made by Borrowers or
the Managing Agent to the Bank which granted such participation, such Bank
shall cause such participant financial institution to deliver the same
documents and information to Borrowers and the Managing Agent as would be
required under this Section if such financial institution were a Bank.

                  11.22  HAZARDOUS MATERIAL INDEMNITY. Each of Borrowers
hereby agrees to indemnify, hold harmless and defend (by counsel reasonably
satisfactory to the Managing Agent) the Managing Agent and each of the Banks
and their respective directors, officers, employees, agents, successors and
assigns from and against any and all claims, losses, damages, liabilities,
fines, penalties, charges, administrative and judicial proceedings and
orders, judgments, remedial action requirements, enforcement actions of any
kind, and all costs and expenses incurred in connection therewith (including
but not limited to reasonable attorneys' fees and the reasonably allocated
costs of attorneys employed by the Managing Agent or any Bank, and expenses
to the extent that the defense of any such action has not been assumed by
Borrowers), arising directly or indirectly out of (i) the presence on, in,
under or about any Real Property of any Hazardous Materials, or any releases
or discharges of any Hazardous Materials on, under or from any Real Property
and (ii) any activity carried on or undertaken on or off any Real Property by
Borrowers or any of its predecessors in title, whether prior to or during the
term of this Agreement, and whether by Borrowers or any predecessor in title
or any employees, agents, contractors or subcontractors of Borrowers or any
predecessor in title, or any third persons at any time occupying or present
on any Real Property, in connection with the handling, treatment, removal,
storage, decontamination, clean-up, transport or disposal of any Hazardous
Materials at any time located or present on, in, under or about any Real
Property. The foregoing indemnity shall further apply to any residual
contamination on, in, under or about any Real Property, or affecting any
natural resources, and to any contamination of any Property or natural
resources arising in connection with the generation, use, handling, storage,
transport or disposal of any such Hazardous Materials, and irrespective of
whether any of such activities were or will be undertaken in accordance with
applicable Laws, but the foregoing indemnity shall not apply to Hazardous
Materials on any Real Property, the presence of which is caused by the
Managing Agent or the Banks. Borrowers hereby acknowledge and agree that,
notwithstanding any other provision of this Agreement or any of the other
Loan Documents to the contrary, the obligations of Borrowers under this
Section (and under Sections 4.17 and 5.10) shall be unlimited corporate
obligations of Borrowers and shall NOT be secured by any Lien on any Real
Property. Any obligation or liability of Borrowers to any Indemnitee under
this Section 11.22 shall survive the expiration or termination of this
Agreement and the repayment of all Loans and the payment and performance of
all other Obligations owed to the Banks.

                                     -93-
<PAGE>

                  11.23  JOINT AND SEVERAL. Each of Borrowers shall be
obligated for all of the Obligations on a joint and several basis,
notwithstanding which of Borrowers may have directly received the proceeds of
any particular Loan. Each of Borrowers acknowledges and agrees that, for
purposes of the Loan Documents, Borrowers constitute a single integrated
financial enterprise and that each receives a benefit from the availability
of credit under this Agreement to all of Borrowers. Each of Borrowers waive
all defenses arising under the Laws of suretyship, to the extent such Laws
are applicable, in connection with its joint and several obligations under
this Agreement. Without limiting the foregoing, each of Borrowers agrees to
the Joint Borrower Provisions set forth in EXHIBIT L, incorporated by this
reference.

                  11.24  REMOVAL OF A BANK. Borrowers shall have the right to
remove a Bank as a party to this Agreement if such Bank refuses (under
certain circumstances) to consent to an extension of the Maturity Date made
pursuant to Section 2.10 or if such Bank is paid a material amount by
Borrowers pursuant to Section 3.7 or Section 3.8. Upon notice from Borrowers,
such Bank shall execute and deliver a Commitment Assignment and Acceptance
covering that Bank's Pro Rata Share of the Commitments in favor of such
Eligible Assignee as Borrowers may designate with the approval of the
Managing Agent, subject to payment in full by such Eligible Assignee of all
principal, interest and fees and any other amount owing to such Bank through
the date of assignment. In addition, if Borrowers' right to remove the Bank
arises under Section 2.10(b), Borrowers may reduce the Commitments pursuant
to Section 2.7 (and, for this purpose, the numerical requirements of Section
2.7 shall not apply) by an amount equal to that Bank's Pro Rata Share of the
Commitments, pay to such Bank all principal, interest and fees and any other
amount owing to such Bank and release such Bank from its Pro Rata Share of
the Commitments.

                  11.25  WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS
AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY
WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY
AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS
AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                  11.26  PURPORTED ORAL AMENDMENTS. BORROWERS EXPRESSLY
ACKNOWLEDGE THAT THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY ONLY BE
AMENDED OR MODIFIED, OR THE PROVISIONS HEREOF OR THEREOF WAIVED OR
SUPPLEMENTED, BY AN INSTRUMENT IN WRITING THAT COMPLIES WITH SECTION 12.1.
BORROWERS AGREE THAT THEY WILL NOT

                                     -94-
<PAGE>

RELY ON ANY COURSE OF DEALING, COURSE OF PERFORMANCE, OR ORAL OR WRITTEN
STATEMENTS BY ANY REPRESENTATIVE OF THE MANAGING AGENT OR ANY BANK THAT DOES
NOT COMPLY WITH SECTION 12.1 TO EFFECT AN AMENDMENT, MODIFICATION, WAIVER OR
SUPPLEMENT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

                  11.27  REPLACEMENT OF NOTES. Upon receipt of evidence
reasonably satisfactory to the Borrowers of the loss, theft, destruction or
mutilation of any Note, and in the case of any such loss, theft or
destruction, upon delivery of an indemnity agreement reasonably satisfactory
to the Borrowers or, in the case of any such mutilation, upon surrender and
cancellation of the applicable Note, the Borrowers will execute and deliver,
in lieu thereof, a replacement Note, identical in form and substance to the
applicable Note and dated as of the date of the applicable Note and upon such
execution and delivery all references in the Loan Documents to such Note
shall be deemed to refer to such replacement Note.

                                   Article 12
                               AMENDMENTS; CONSENTS

                  12.1  AMENDMENTS; CONSENTS. No amendment, modification,
supplement, extension, termination or waiver of any provision of this
Agreement or any other Loan Document, no approval or consent thereunder, and
no consent to any departure by Borrowers or any other Party therefrom, may in
any event be effective unless in writing signed by the Requisite Banks (and,
in the case of any amendment, modification or supplement of or to any Loan
Document to which any of Borrowers is a Party, signed by each such Party,
and, in the case of any amendment, modification or supplement to Section 3.5
or ARTICLE 10, signed by the Managing Agent), and then only in the specific
instance and for the specific purpose given; and, without the approval in
writing of all the Banks, no amendment, modification, supplement,
termination, waiver or consent may be effective:

                         (a)  To amend, modify, forgive, reduce or waive
         the principal of, or the amount of principal, principal prepayments
         or the rate of interest payable on, any Note, or the amount of the
         Commitments or the Pro Rata Share of any Bank or the amount of any
         commitment fee payable to any Bank, or any other fee or amount
         payable to any Bank under the Loan Documents or to waive an Event of
         Default consisting of the failure of Borrowers to pay when due
         principal, interest or any fee;

                         (b)  To postpone any date fixed for any payment of
         principal of, prepayment of principal of or any installment of
         interest on, any Note or any installment of any fee, or to extend
         the term of the Commitments;

                         (c)  To amend the provisions of the definition of
         "REQUISITE BANKS" or "MATURITY DATE"; or

                         (d)  To amend or waive ARTICLE 8 or this Section
         12.1; or

                                     -95-
<PAGE>

                         (e)  To amend any provision of this Agreement that
         expressly requires the consent or approval of all of the Banks to
         require a lesser number of Banks to approve such action; or

                         (f)  To release any Borrower except as provided in
         Section 6.18; or

                         (g)  To change the manner of distribution of any
         payments to the Banks or the Managing Agent; or

                         (h)  To require a Bank to fund more than its Pro
         Rata Share of a Request for an Advance, a Swing Loan or a Letter of
         Credit.

Notwithstanding anything herein to the contrary, the Managing Agent may with
the approval of the Majority Banks temporarily waive compliance by Borrowers
with any condition, obligation or covenant contained in this Agreement or the
Loan Documents (other than a failure to make a payment of any principal,
interest or fee when due) for a period not to exceed ninety (90) days,
provided, however, that any such condition, obligation or covenant so waived
may not be consecutively waived after the expiration of such ninety (90) day
period. There shall be no amendment, modification or waiver of any provisions
in the Loan Documents with respect to Swing Loans or Competitive Advances
without the consent of the Swing Loan Bank or any Bank then holding a
Competitive Advance, respectively. Any amendment, modification, supplement,
termination, waiver or consent pursuant to this SECTION 12.1 shall apply
equally to, and shall be binding upon, all the Banks and the Managing Agent.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     -96-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                                 ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                 By: /s/ PETER J. NELSON
                                    -------------------------------------
                                    Its:  PETER J. NELSON
                                          SENIOR VICE PRESIDENT &
                                          CHIEF FINANCIAL OFFICER

                                 ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                 By:     ARE-QRS Corp., its general partner

                                         By: /s/ PETER J. NELSON
                                             ----------------------------------
                                              Its: PETER J. NELSON
                                                   SENIOR VICE PRESIDENT &
                                                   CHIEF FINANCIAL OFFICER
                                 ARE-QRS CORP.

                                 By: /s/ PETER J. NELSON
                                    -------------------------------------
                                    Its:  PETER J. NELSON
                                          SENIOR VICE PRESIDENT &
                                          CHIEF FINANCIAL OFFICER

                                 ARE ACQUISITIONS, LLC
                                 ARE-708 QUINCE ORCHARD, LLC
                                 ARE-940 CLOPPER ROAD, LLC
                                 ARE-1201 HARBOR BAY, LLC
                                 ARE-1401 RESEARCH BOULEVARD, LLC
                                 ARE-1500 EAST GUDE, LLC
                                 ARE-JOHN HOPKINS COURT, LLC

                                 By:     ARE-QRS Corp., their managing member

                                         By: /s/ PETER J. NELSON
                                             ----------------------------------
                                              Its: PETER J. NELSON
                                                   SENIOR VICE PRESIDENT &
                                                   CHIEF FINANCIAL OFFICER

<PAGE>

                                 ARE-4757 NEXUS CENTRE, LLC ARE-215
                                 COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                 ROAD, LLC ARE-150/154 TECHNOLOGY
                                 PARKWAY, LLC ARE-8000/9000/10000
                                 VIRGINIA MANOR, LLC ARE-19
                                 FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                 COLUMBIA, LLC ARE-11025 ROSELLE
                                 STREET, LLC ARE-170 WILLIAMS DRIVE,
                                 LLC ARE-3005 FIRST AVENUE, LLC
                                 ARE-15020 SHADY GROVE, LLC ARE-5
                                 TRIANGLE DRIVE, LLC ARE-50 WEST
                                 WATKINS MILL, LLC ARE-100 PHILLIPS
                                 PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                 LLC ARE-2001 ALICEANNA STREET, LLC
                                 ARE-3770 TANSY STREET, LLC ARE-10505
                                 ROSELLE STREET, LLC
                                 ARE-9363/9373/9393 TOWN CENTRE, LLC
                                 ARE-2425/2400/2450 GARCIA BAYSHORE,
                                 LLC

                                 By:      Alexandria Real Estate Equities, L.P.,
                                          their sole member

                                          By:    ARE-QRS Corp., its general
                                                 partner

                                                 By: /s/ PETER J. NELSON
                                                 -----------------------------
                                                 Its: PETER J. NELSON
                                                      SENIOR VICE PRESIDENT &
                                                      CHIEF FINANCIAL OFFICER

<PAGE>

                                  ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                  ARE-280 POND STREET, LLC
                                  ARE-60 WESTVIEW, LLC

                                  By:      AREE-Holdings, L.P., their managing
                                           member

                                           By:  ARE-GP Holdings QRS Corp.,
                                                its general partner

                                                By: /s/ PETER J. NELSON
                                                    ---------------------------
                                                    Its: PETER J. NELSON
                                                         SENIOR VICE PRESIDENT &
                                                         CHIEF FINANCIAL OFFICER

                                  ARE-5100/5110 CAMPUS DRIVE, L.P.
                                  ARE-702 ELECTRONIC DRIVE, L.P.

                                  By:      AREE-Holdings, L.P., their general
                                           partner

                                           By:  ARE-GP Holdings QRS Corp., its
                                                general partner

                                                By: /s/ PETER J. NELSON
                                                    ---------------------------
                                                    Its: PETER J. NELSON
                                                         SENIOR VICE PRESIDENT &
                                                         CHIEF FINANCIAL OFFICER

                                  ARE-10933 NORTH TORREY PINES, LLC
                                  ARE-11099 NORTH TORREY PINES, LLC

                                  By:      Alexandria Real Estate Equities,
                                           Inc., their sole member

                                           By: /s/ PETER J. NELSON
                                               ---------------------------
                                               Its: PETER J. NELSON
                                                    SENIOR VICE PRESIDENT &
                                                    CHIEF FINANCIAL OFFICER

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101

Attn:  Mr. Joel S. Marcus, Chief Executive Officer
Telecopier:   (626) 578-0770
Telephone:    (626) 578-0777

<PAGE>

                                            BANKBOSTON, N.A., individually and
                                            as Managing Agent

                                            By: /s/ DANIEL P. STEGEMOELLER
                                                ----------------------------
                                                    Dan Stegemoeller,
                                                    Vice President

Address:

BANKBOSTON, N.A.
100 Federal Street
Boston, Massachusetts 02110
Attn: Real Estate Division

WITH A COPY TO:

BANKBOSTON, N.A.
115 Perimeter Center Place, N.E., Suite 500
Atlanta, Georgia 30346
Attn: Mr. Dan Stegemoeller, Vice President

Telecopier:    (770) 390-8434
Telephone:     (770) 390-6547

<PAGE>

                                THE CHASE MANHATTAN BANK, individually and as
                                Syndication Agent

                                By:  /s/ JOHN MIX
                                    ------------------------------------
                                Its: Vice President
                                    ------------------------------------

The Chase Manhattan Bank
Chase Real Estate Finance
270 Park Avenue, 31st Floor
New York, New York 10017-2014
Attn:  Mr. John Mix, Vice President
Phone: (212) 270-9562
Facsimile: (212) 270-3513

<PAGE>

                                   FIRST UNION NATIONAL BANK,
                                   individually and as Documentation Agent

                                   By: /s/ CYNTHIA A. BEAN
                                       -------------------------------------
                                           Cynthia A. Bean, Vice President

First Union National Bank
One First Union Center
TW-6 NC-0166
301 S.  College Street
Charlotte, NC 28288-0166
Attn:  Ms. Cynthia A  Bean, Vice President
Phone: (704) 383-7534
Facsimile: (704) 383-6205

<PAGE>

                                            SOCIETE GENERALE SOUTHWEST AGENCY,
                                            Individually and as Co-Agent

                                            By: /s/ SCOTT GOSSLEE
                                               ---------------------------------
                                                    Scott Gosslee,
                                                    Vice President

Societe Generale Southwest Agency
2001 Ross Avenue
Suite 4900
Dallas, TX 75201
Attn:  Mr. Scott Gosslee, Vice President
Phone: (214) 979-2779
Facsimile: (214) 979-2727

<PAGE>

                                            KEYBANK NATIONAL ASSOCIATION,
                                            Individually and as Co-Agent

                                            By: /s/ MICHAEL D. MITRO
                                                --------------------------------
                                                    Michael D. Mitro,
                                                    Senior Vice President

KeyBank National Association
127 Public Square, 6th Floor
MCOH-01-27-0603
Cleveland, OH  44114
Attn:  Mr. John Scott, Relationship Officer
Phone: (216) 689-3512
Facsimile: (216) 689-4997

<PAGE>

                                     DRESDNER BANK AG, New York and Grand Cayman
                                     Branches, Individually and as Co-Agent

                                     By:  /s/ JOHN R. MORRISON
                                         -------------------------------------
                                              JOHN R. MORRISON

                                     Its:     VICE PRESIDENT
                                         -------------------------------------

                                     By:  /s/ JOHN W. SWEENEY
                                         -------------------------------------
                                              JOHN W. SWEENEY

                                     Its:     VICE PRESIDENT
                                         -------------------------------------

Dresdner Bank AG, Los Angeles Agency
333 South Grand Avenue, Suite 1700
Los Angeles, CA  90071
Attn:  Mr. John Cobus, Assistant Vice President
Phone: (213) 473-5431
Facsimile: (213) 473-5450

<PAGE>

                                       CRESTAR BANK

                                       By: /s/ GREGORY T. HORSTMAN
                                           ------------------------------------
                                               Gregory T. Horstman,
                                               Vice President

Crestar Bank
8245 Boone Boulevard
Suite 820
Vienna, VA  22182
Attn:  Mr. Gregory T. Horstman
Phone: (703) 902-9384
Facsimile: (703) 902-9245

<PAGE>

                                     RIGGS BANK, N.A.

                                     By: /s/ CRAIG HAVARD
                                         ------------------------------------
                                             Craig Havard,
                                             Vice President

Riggs Bank, N.A.
Commercial Banking
808 17th Street, N.W.
7th Floor
Washington, D.C. 20006
Attn:  Ms. Amanda Visser, Assistant Vice President
Phone: (202) 835-5062
Facsimile: (202) 835-5977

<PAGE>

                                      SUMMIT BANK

                                      By: /s/ KELLIE ANDERSON
                                          ------------------------------------
                                              Kellie Anderson,
                                              Vice President

Summit Bank
Commerce Center
1800 Chapel Avenue West
Cherry Hill, NJ 08002
Attn:  Ms. Kellie Anderson, Vice President
Phone: (856) 486-3648
Facsimile: (856) 486-3717

<PAGE>

                                        SOVEREIGN BANK

                                        By: /s/ THOMAS W. NADEAU
                                            ---------------------------------
                                                Thomas W. Nadeau,
                                                Sr. Vice President

Sovereign Bank
50 Rowes Wharf
Suite 430
Boston, MA 02110
Attn:  Mr. Thomas W. Nadeau, Vice President
Phone: (617) 478-6706
Facsimile: (617) 478-6799

<PAGE>

                                      THE INDUSTRIAL BANK OF JAPAN, LIMITED

                                      By: /s/ TAKESHI KUBO
                                          ----------------------------------
                                              Takeshi Kubo,
                                              Vice President

The Industrial Bank of Japan, Limited
350 South Grand Avenue
Suite 1500
Los Angeles, CA  90071
Attn: Mr. Takeshi Kubo, Vice President
Phone: (213) 893-6447
Facsimile: (213) 488-9840

<PAGE>

                                       CITIZENS BANK OF MASSACHUSETTS

                                       BY: /s/ JAMES C. HAUGHT
                                           --------------------------------
                                               James C. Haught,
                                               Assistant Vice President

Citizens Bank of Massachusetts
One Citizens Plaza RC0440
Providence, Rhode Island 02903
Attn:  Mr. Craig Schermerhorn, Vice President
Phone: (401) 455-5425
Facsimile (401) 282-4485

<PAGE>

                                       MANUFACTURERS BANK

                                       BY: /s/ DANA MORKEN
                                          ---------------------------------
                                               Dana Morken,
                                               Vice President

Manufacturers Bank
515 S. Figueroa Street
Suite 1230
Los Angeles, CA 90071
Attn: Mr. Dana Morken, Vice President
Phone: (213) 489-8841
Facsimile: (213) 489-6244

<PAGE>

                                       CHEVY CHASE BANK

                                       BY: /s/ ERIC A. LAWRENCE
                                          ----------------------------------
                                               Eric A. Lawrence,
                                               Vice President

Chevy Chase Bank
8401 Connecticut Avenue
Chevy Chase, Maryland 20815
Attn: Mr. Eric A. Lawrence, Vice President
Phone: (301) 986-7216
Facsimile: (301) 986-7516

<PAGE>

                                    EXHIBIT A

                      COMMITMENTS ASSIGNMENT AND ACCEPTANCE

         THIS COMMITMENTS ASSIGNMENT AND ACCEPTANCE ("Agreement") dated as of
___________, 200__ is made with reference to that certain Second Amended and
Restated Revolving Loan Agreement dated as of February 11, 2000 (as amended,
extended, renewed, supplemented or otherwise modified through the date hereof,
the "Loan Agreement") by and among Alexandria Real Estate Equities, Inc., a
Maryland corporation ("Parent"), Alexandria Real Estate Equities, L.P., a
Delaware limited partnership (AOperating Partnership@), ARE-QRS Corp., a
Maryland corporation ("QRS"), ARE Acquisitions, LLC, a Delaware limited
liability company ("ARE"), the other borrowers whose names are set forth on the
signature pages of the Loan Agreement, each other Wholly-Owned Subsidiary of
Parent which may hereafter become a party to the Loan Agreement as a borrower
(collectively, with Parent, Operating Partnership, QRS and ARE, the "Borrowers,"
all on a joint and several basis), each bank whose name is set forth on the
signature pages of the Loan Agreement and each lender which thereafter may have
become a party to the Loan Agreement (collectively, the "Banks" and
individually, a "Bank"), and BankBoston, N.A., as Managing Agent, and is entered
into between the "Assignor" described below, in its capacity as a Bank under the
Loan Agreement, and the "Assignee" described below.

         Assignor and Assignee hereby represent, warrant and agree as follows:

1.       DEFINITIONS. Capitalized terms defined in the Loan Agreement are used
         herein with the meanings set forth for such terms in the Loan
         Agreement. As used in this Agreement, the following capitalized terms
         shall have the meanings set forth below:

         "ASSIGNEE" means       [INSERT NAME OF TRANSFEREE]        .
                         ------------------------------------------

         "ASSIGNED PRO RATA SHARE" means ____________% of the Commitments of
the Banks under the Loan Agreement which equals $______________.

         "ASSIGNOR" means       [INSERT NAME OF TRANSFEROR]        .
                         ------------------------------------------

         "EFFECTIVE DATE" means ____________, 200_, the effective date of
this Agreement determined in accordance with Section 11.8 of the Loan
Agreement.

2.       REPRESENTATIONS AND WARRANTIES OF THE ASSIGNOR. The Assignor represents
         and warrants to the Assignee as follows:

         a.       As of the date hereof, the Pro Rata Share of the Assignor
                  is __% of the Commitments (without giving effect to
                  assignments thereof which have not yet become effective). The
                  Assignor is the legal and beneficial owner of the Assigned
                  Pro Rata Share and the Assigned Pro Rata Share is free and
                  clear of any adverse claim.

<PAGE>

         b.       As of the date hereof, the outstanding principal balance of
                  Advances made by the Assignor under the Assignor's Line Note
                  is $_______ and the Assignor's Competitive Advance Note is
                  $___________________. Unless otherwise agreed among Assignor
                  and Assignee, amounts outstanding under Assignor's Competitive
                  Advance Notes, if any, shall not be assigned.

         c.       The Assignor has full power and authority, and has taken all
                  action necessary, to execute and deliver this Agreement and
                  any and all other documents required or permitted to be
                  executed or delivered by it in connection with this Agreement
                  and to fulfill its obligations under, and to consummate the
                  transactions contemplated by, this Agreement, and no
                  governmental authorizations or other authorizations are
                  required in connection therewith; and

         d.       This Agreement constitutes the legal, valid and binding
                  obligation of the Assignor.

Neither the Assignor nor the Managing Agent makes any representation or warranty
and assumes no responsibility with respect to the financial condition of
Borrowers or the performance by Borrowers of the Obligations, and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Loan Agreement or the execution, legality,
validity, enforceability, genuineness, or sufficiency of the Loan Agreement or
any Loan Document other than as expressly set forth above.

3.       REPRESENTATIONS AND WARRANTIES OF THE ASSIGNEE. The Assignee hereby
         represents and warrants to the Assignor as follows:

         i.       The Assignee has full power and authority, and has taken all
                  action necessary, to execute and deliver this Agreement, and
                  any and all other documents required or permitted to be
                  executed or delivered by it in connection with this Agreement
                  and to fulfill its obligations under, and to consummate the
                  transactions contemplated by, this Agreement, and no
                  governmental authorizations or other authorizations are
                  required in connection therewith;

         ii.      This Agreement constitutes the legal, valid and binding
                  obligation of the Assignee;

         iii.     The Assignee has independently and without reliance upon the
                  Managing Agent or Assignor and based on such documents and
                  information as the Assignee has deemed appropriate, made its
                  own credit analysis and decision to enter into this Agreement.
                  The Assignee will, independently and without reliance upon the
                  Managing Agent or any Bank, and based upon such documents and
                  information as it shall deem appropriate at the time, continue
                  to make its own credit decisions in taking or not taking
                  action under the Loan Agreement;

                                       -2-

<PAGE>

         iv.      The Assignee has received copies of such of the Loan Documents
                  delivered pursuant to Section 8.1 of the Loan Agreement as it
                  has requested, together with copies of the most recent
                  financial statements delivered pursuant to Section 7.1 of the
                  Loan Agreement;

         v.       The Assignee will perform in accordance with their respective
                  terms all of the obligations which by the terms of the Loan
                  Agreement are required to be performed by it as a Bank;

         vi.      The Assignee is an Eligible Assignee; and

         vii.      The Assignee restates each and every warranty of Assignee set
                  forth in Section 11.8 of the Loan Agreement.

4.       ASSIGNMENT. On the terms set forth herein, the Assignor, as of the
         Effective Date, hereby irrevocably sells, assigns and transfers to the
         Assignee all of the rights and obligations of the Assignor under the
         Loan Agreement, the other Loan Documents and the Assignor's Line Notes
         to the extent of the Assigned Pro Rata Share and, unless otherwise
         agreed among Assignor and Assignee, amounts outstanding under
         Assignor's Competitive Advance Note to the extent of $_____________,
         and the Assignee irrevocably accepts such assignment of rights and
         assumes such obligations from the Assignor on such terms and effective
         as of the Effective Date. As of the Effective Date, the Assignee shall
         have the rights and obligations of a "Bank" under the Loan Documents,
         except to the extent of any arrangements with respect to payments
         referred to in Section 5 hereof. Assignee hereby appoints and
         authorizes the Managing Agent, to take such action and to exercise
         such powers under the Loan Agreement as are delegated to the Managing
         Agent by the Loan Agreement.

5.       PAYMENT. On the Effective Date, the Assignee shall pay to the Assignor,
         in immediately available funds, an amount equal to the purchase price
         of the Assigned Pro Rata Share and amounts acquired under the
         Assignor=s Competitive Advance Note, if applicable, as agreed between
         the Assignor and the Assignee pursuant to a letter agreement of even
         date herewith. Assignee shall also pay to the Managing Agent, as a
         condition to the effectiveness of this Agreement, an assignment fee of
         $2,500 in accordance with Section 11.8 of the Loan Agreement.

6.       PRINCIPAL, INTEREST, FEES, ETC. From and after the Effective Date all
         payments in respect of the interests assigned hereunder accruing after
         the Effective Date (including payments of principal, interest, fees and
         other amounts) shall be payable to Assignee. All outstanding LIBOR Rate
         Loans shall continue in effect for the remainder of their applicable
         Interest Periods and Assignee shall accept the currently effective
         interest rates on its assigned interest of each LIBOR Rate Loan. The
         Assignor and the Assignee hereby agree that if either receives any
         payment of interest, principal, fees or any other amount under the Loan
         Agreement, their respective Notes or any other Loan Documents which is
         for the

                                      -3-

<PAGE>

         account of the other, it shall hold the same in trust for such party
         to the extent of such party=s interest therein and shall promptly pay
         the same to such party.

7.       NOTES. The Assignor and the Assignee shall make appropriate
         arrangements with the Borrowers concurrently with the execution and
         delivery hereof so that replacement Notes are issued to the Assignor
         and new Notes, are issued to the Assignee in principal amounts
         reflecting their Pro Rata Shares of the Commitments and their
         outstanding Advances (as adjusted pursuant to this Agreement).

8.       FURTHER ASSURANCES. The Assignor and the Assignee agree to execute and
         deliver such other instruments, and take such other action, as either
         party may reasonably request in connection with the transactions
         contemplated by this Agreement, and the Assignor specifically agrees to
         cause the delivery of two original counterparts of this Agreement to
         the Managing Agent for the purpose of registration of the Assignee as a
         "Bank" pursuant to Section 11.8 of the Loan Agreement.

9.       GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL
         OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED
         IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

10.      NOTICES. All communications among the parties or notices in connection
         herewith shall be in writing, hand delivered or sent by U.S. registered
         mail, postage prepaid, or by telecopy, addressed to the appropriate
         party at its address set forth on the signature pages hereof. All such
         communications and notices shall be effective upon receipt.

11.      BINDING EFFECT. This Agreement shall be binding upon and inure to the
         benefit of the parties and their respective successors and assigns;
         provided, however, that the Assignee shall not assign its rights or
         obligations without the prior written consent of the Assignor and any
         purported assignment, absent such consent, shall be void.

12.      INTERPRETATION. The headings of the various sections hereof are for
         convenience of reference only and shall not affect the meaning or
         construction of any provision hereof.

                                      -4-

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered by their respective officials, officers or agents
hereunto duly authorized as of the date first above written.

                                   "Assignor"

                                   ---------------------------------

                                   By:
                                      ------------------------------

                                   ---------------------------------
                                       Printed Name and Title

                                   Address:
                                           -------------------------
                                           -------------------------
                                           -------------------------

                                   Telephone
                                             -----------------------
                                   Telecopier
                                             -----------------------

                                   "Assignee"

                                   ---------------------------------

                                   By:
                                      ------------------------------

                                   ---------------------------------
                                       Printed Name and Title

                                   Address:
                                           -------------------------
                                           -------------------------
                                           -------------------------

                                   Telephone
                                             -----------------------
                                   Telecopier
                                             -----------------------

                                      -5-

<PAGE>

                     CONSENT OF MANAGING AGENT AND BORROWERS

[WHEN REQUIRED PURSUANT TO SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT]

TO:      The Assignor and Assignee referred to in the Commitments Assignment and
         Acceptance to which this Consent is attached

         When countersigned by Managing Agent and (when applicable) Borrowers
below, this document shall certify that:

         / /      [CHECK HERE IF BORROWERS' SIGNATURE IS REQUIRED PURSUANT TO
                  SECTION 11.8(b)(i) OF THE SECOND AMENDED AND RESTATED
                  REVOLVING LOAN AGREEMENT:]

1.       Borrowers have consented, pursuant to the terms of the Loan Documents,
         to the assignment by the Assignor to the Assignee of the Assigned Pro
         Rata Share.

2.       Managing Agent has registered the Assignee as a Bank under the Loan
         Agreement, effective as of the Effective Date described above, with a
         Pro Rata Share of the Commitments corresponding to the Assigned Pro
         Rata Share and has adjusted the registered Pro Rata Share of the
         Commitments of the Assignor to reflect the assignment of the Assigned
         Pro Rata Share and has adjusted its records concerning the assignment
         of any portion of the Competitive Advances.

                                      Approved:

                                      ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                      By:   ___________________________
                                            Its:

                                      ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                      By:   ARE-QRS Corp., its general partner

                                            By:___________________________
                                               Its:

<PAGE>

                            ARE-QRS CORP.

                            By:___________________________
                               Its:

                            ARE ACQUISITIONS, LLC
                            ARE-708 QUINCE ORCHARD, LLC
                            ARE-940 CLOPPER ROAD, LLC
                            ARE-1201 HARBOR BAY, LLC
                            ARE-1401 RESEARCH BOULEVARD, LLC
                            ARE-1500 EAST GUDE, LLC
                            ARE-JOHN HOPKINS COURT, LLC

                            By:      ARE-QRS Corp., their managing member

                                     By:___________________________
                                        Its:

                                    -2-

<PAGE>

                                  ARE-4757 NEXUS CENTRE, LLC ARE-215
                                  COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                  ROAD, LLC ARE-150/154 TECHNOLOGY
                                  PARKWAY, LLC ARE-8000/9000/10000
                                  VIRGINIA MANOR, LLC ARE-19
                                  FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                  COLUMBIA, LLC ARE-11025 ROSELLE
                                  STREET, LLC ARE-170 WILLIAMS DRIVE,
                                  LLC ARE-3005 FIRST AVENUE, LLC
                                  ARE-15020 SHADY GROVE, LLC ARE-5
                                  TRIANGLE DRIVE, LLC ARE-50 WEST
                                  WATKINS MILL, LLC ARE-100 PHILLIPS
                                  PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                  LLC ARE-2001 ALICEANNA STREET, LLC
                                  ARE-3770 TANSY STREET, LLC ARE-10505
                                  ROSELLE STREET, LLC
                                  ARE-9363/9373/9393 TOWN CENTRE, LLC
                                  ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

                                  By:  Alexandria Real Estate Equities, L.P.,
                                       their sole member

                                       By:  ARE-QRS Corp., its general partner

                                            By:____________________________
                                               Its:

                                  ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                  ARE-280 POND STREET, LLC
                                  ARE-60 WESTVIEW, LLC

                                  By: AREE-Holdings, L.P., their managing member

                                      By: ARE-GP Holdings QRS Corp.,
                                          its general partner

                                          By:_________________________
                                             Its:

                                      -3-

<PAGE>

                                   ARE-5100/5110 CAMPUS DRIVE, L.P.
                                   ARE-702 ELECTRONIC DRIVE, L.P.

                                   By:  AREE-Holdings, L.P.,
                                        their general partner

                                        By: ARE-GP Holdings QRS Corp.,
                                            its general partner

                                            By:_______________________
                                               Its:

                                   ARE-10933 NORTH TORREY PINES, LLC
                                   ARE-11099 NORTH TORREY PINES, LLC

                                   By: Alexandria Real Estate Equities, Inc.,
                                       their sole member

                                       By:_________________________
                                          Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus, Chief Executive Officer
Telecopier: (626) 578-0770
Telephone:  (626) 578-0777

                                      -4-

<PAGE>

                                   BANKBOSTON, N.A., individually and
                                   as Managing Agent

                                   By:______________________________________
                                      Its:

Address:

BANKBOSTON, N.A.
100 Federal Street
Boston, Massachusetts 02110
Attn: Real Estate Division

WITH A COPY TO:

BANKBOSTON, N.A.
115 Perimeter Center Place, N.E., Suite 500
Atlanta, Georgia 30346
Attn: Dan Stegemoeller

Telecopier: (770) 390-8434
Telephone:  (770) 390-6547

                                    -5-
<PAGE>

                                    EXHIBIT B

                            COMPETITIVE ADVANCE NOTE

$_______________                                          as of _________, 200__
                                                         Los Angeles, California

         FOR VALUE RECEIVED, the undersigned jointly and severally promise to
pay to the order of (the "Bank"), the principal amount of
___________________________ DOLLARS ($____________) or such lesser aggregate
amounts as may be made as Competitive Advances hereunder pursuant to the Loan
Agreement referred to below, payable as hereinafter set forth. The undersigned
jointly and severally promise to pay interest on the principal amount hereof
remaining unpaid from time to time from the date hereon until the date of
payment in full, payable as hereinafter set forth.

         Reference is made to the Second Amended and Restated Revolving Loan
Agreement dated as of February 11, 2000 (the "Loan Agreement"), by and among
Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"),
Alexandria Real Estate Equities, L.P., a Delaware limited partnership
("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE
Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other
borrowers whose names are set forth on the signature pages of the Loan
Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter
become a party to the Loan Agreement as a borrower (collectively, with Parent,
Operating Partnership, QRS and ARE, the "Borrowers", all on a joint and several
basis), each lender whose name is set forth on the signature pages of the Loan
Agreement and each lender which may have become a party to the Loan Agreement
(collectively, the "Banks" and individually, a "Bank"), and BankBoston, N.A., as
Managing Agent. Terms defined in the Loan Agreement and not otherwise defined
herein are used herein with the meanings given those terms in the Loan
Agreement. This is one of the Competitive Advance Notes referred to in the Loan
Agreement, and any holder hereof is entitled to all of the rights, remedies,
benefits and privileges provided for in the Loan Agreement as originally
executed or as it may from time to time be supplemented, modified or amended.
The Loan Agreement, among other things, contains provisions for acceleration of
the maturity hereof upon the happening of certain stated events upon the terms
and conditions therein specified.

         The principal indebtedness of each Competitive Advance evidenced by
this Competitive Advance Note shall be payable on the maturity date specified in
the Competitive Bid relating to such Competitive Advance and in any event on the
Maturity Date.

         Interest shall be payable on the outstanding daily unpaid principal
amount of each Competitive Advance hereunder from the date thereof until payment
in full and shall accrue and be payable at the rates and on the dates set forth
in the Competitive Bid relating to such Competitive Advance and as provided in
the Loan Agreement, both before and after default and before and after maturity
and judgment, with interest on overdue principal and interest to bear

<PAGE>

interest at the rate set forth in Section 3.9 of the Loan Agreement, to the
fullest extent permitted by applicable Law.

         The amount of each payment hereunder shall be made to the Managing
Agent at the Managing Agent's Office for the account of the Bank or the Managing
Agent, as the case may be, in immediately available funds not later than 1:00
p.m. (Boston, Massachusetts time) on the day of payment (which must be a Banking
Day). All payments received after such time on any Banking Day shall be deemed
received on the next succeeding Banking Day. All payments shall be made in
lawful money of the United States of America. The Bank shall use its best
efforts to keep a record of Competitive Advances made by it and payments of
principal received by it with respect to this Competitive Advance Note, and such
record shall be presumptive evidence of the amounts owing under this Competitive
Advance Note. Notwithstanding the foregoing, the failure by the Bank to keep
such a record shall not affect the undersigned's obligation to pay the
indebtedness evidenced hereby.

         The undersigned hereby promise to pay all costs and expenses of any
rightful holder hereof incurred in collecting the undersigneds' obligations
hereunder or in enforcing or attempting to enforce any of such holder's rights
hereunder, including reasonable attorneys' fees and disbursements (including
reasonably allocated costs of legal counsel employed by the Managing Agent or
the holder), whether or not an action is filed in connection therewith.

         The undersigned hereby waive presentment, demand for payment, dishonor,
notice of dishonor, protest, notice of protest and any other notice or
formality, to the fullest extent permitted by applicable Laws.

         The undersigned agree that their liability hereunder is joint and
several, absolute and unconditional without regard to the liability of any other
party. All provisions of this Competitive Advance Note shall apply to each of
the undersigned.

         THIS COMPETITIVE ADVANCE NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

                                     -2-
<PAGE>

                                      ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                      By:
                                          -------------------------
                                          Its:

                                      ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                      By: ARE-QRS Corp., its general partner

                                          By:
                                             ----------------------
                                             Its:

                                      ARE-QRS CORP.

                                      By:
                                          -------------------------
                                          Its:

                                      ARE ACQUISITIONS, LLC
                                      ARE-708 QUINCE ORCHARD, LLC
                                      ARE-940 CLOPPER ROAD, LLC
                                      ARE-1201 HARBOR BAY, LLC
                                      ARE-1401 RESEARCH BOULEVARD, LLC
                                      ARE-1500 EAST GUDE, LLC
                                      ARE-JOHN HOPKINS COURT, LLC

                                      By: ARE-QRS Corp., their managing member

                                          By:
                                             ----------------------
                                             Its:

                                      -3-
<PAGE>

                                       ARE-4757 NEXUS CENTRE, LLC
                                       ARE-215 COLLEGE ROAD, LLC
                                       ARE-819/863 MITTEN ROAD, LLC
                                       ARE-150/154 TECHNOLOGY PARKWAY, LLC
                                       ARE-8000/9000/10000 VIRGINIA MANOR, LLC
                                       ARE-19 FIRSTFIELD ROAD, LLC
                                       ARE-10150 OLD COLUMBIA, LLC
                                       ARE-11025 ROSELLE STREET, LLC
                                       ARE-170 WILLIAMS DRIVE, LLC
                                       ARE-3005 FIRST AVENUE, LLC
                                       ARE-15020 SHADY GROVE, LLC
                                       ARE-5 TRIANGLE DRIVE, LLC
                                       ARE-50 WEST WATKINS MILL, LLC
                                       ARE-100 PHILLIPS PARKWAY, LLC
                                       ARE-279 PRINCETON ROAD, LLC
                                       ARE-2001 ALICEANNA STREET, LLC
                                       ARE-3770 TANSY STREET, LLC
                                       ARE-10505 ROSELLE STREET, LLC
                                       ARE-9363/9373/9393 TOWN CENTRE, LLC
                                       ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

                                       By: Alexandria Real Estate Equities,
                                           L.P., their sole member

                                           By: ARE-QRS Corp., its general
                                               partner

                                               By:
                                                  -----------------------
                                                  Its:

                                       ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                       ARE-280 POND STREET, LLC
                                       ARE-60 WESTVIEW, LLC

                                       By: AREE-Holdings, L.P., their managing
                                           member

                                           By: ARE-GP Holdings QRS Corp., its
                                               general partner

                                               By:
                                                  -----------------------
                                                  Its:

                                      -4-
<PAGE>

                                     ARE-5100/5110 CAMPUS DRIVE, L.P.
                                     ARE-702 ELECTRONIC DRIVE, L.P.

                                     By: AREE-Holdings, L.P., their
                                         general partner

                                         By: ARE-GP Holdings QRS Corp.,
                                             its general partner

                                             By:
                                                -----------------------
                                                Its:

                                     ARE-10933 NORTH TORREY PINES, LLC
                                     ARE-11099 NORTH TORREY PINES, LLC

                                     By: Alexandria Real Estate Equities,
                                         Inc., their sole member

                                             By:
                                                -----------------------
                                                Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn: Joel S. Marcus, Chief Executive Officer
Telecopier: (626) 578-0770
Telephone:  (626) 578-0777

                                      -5-
<PAGE>

                      SCHEDULE OF COMPETITIVE ADVANCES AND
                              PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>

Date         Amount        Interest        Amount of        Unpaid          Notation
               of          Period          Principal       Principal         Made by
             Advance                          Paid          Balance

<S>          <C>           <C>             <C>             <C>              <C>

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

</TABLE>

<PAGE>

                                    EXHIBIT C

                             FORM OF COMPETITIVE BID

BankBoston, N.A., as Managing Agent
115 Perimeter Center Place, N.E.
Suite 500
Atlanta, Georgia  30346
Attn:  Dan Stegemoeller

         Re:      Competitive Bid Rate Loan Quote for Alexandria Real Estate
                  Equities, Inc., Alexandria Real Estate Equities, L.P., ARE-QRS
                  Corp., ARE Acquisitions, LLC and the other Borrowers

Dear Ladies and Gentlemen:

         Reference is made to the Second Amended and Restated Revolving Loan
Agreement dated as of February 11, 2000, as from time to time in effect (the
"Loan Agreement"), by and among Alexandria Real Estate Equities, Inc.,
Alexandria Real Estate Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the
other borrowers whose names are set forth on the signature pages of the Loan
Agreement and the other Persons which may become borrowers under the Loan
Agreement (collectively, the "Borrowers", all on a joint and several basis),
BankBoston, N.A., for itself and as Managing Agent and the other Banks from time
to time party thereto. Terms defined in the Loan Agreement and not otherwise
defined herein are used herein as defined in the Loan Agreement.

         In response to the Competitive Bid Request from Borrowers dated ______,
____, we hereby make the following Competitive Bid on the following terms:

1.       Quoting Bank:
         ______________________________________________________________________

2.       Person to contact at Quoting Bank and telephone number:

         Name:__________________________________________________________________

         Telephone Number:______________________________________________________

<PAGE>

3.       Borrowing date of proposed Competitive Advance:

         ____________________________________________________________________(1)

4.       We hereby offer to make Competitive Advances in the following principal
         amounts, for the following durations and at the following rates [insert
         only one applicable rate on each line below]:

<TABLE>
<CAPTION>

                              DURATION OF                                        LIBOR Margin
PRINCIPAL AMOUNT(2)       COMPETITIVE ADVANCE(3)       ABSOLUTE RATE BID(4)          BID(5)
-------------------       ----------------------       --------------------    ------------------
<S>                       <C>                          <C>                     <C>
$__________________       ______________________       ___________________%    ___________________%

$__________________       ______________________       ___________________%    ___________________%

$__________________       ______________________       ___________________%    ___________________%
</TABLE>

PROVIDED that the aggregate Maximum Competitive Advance for which this offer may
be accepted shall not exceed $____________________.(6)

         We understand and agree that the offer(s) set forth above, subject to
the satisfaction of the applicable conditions set forth in the Loan Agreement,
irrevocably obligate(s) us to make the Competitive Advance(s) for which any
offer(s) is (are) accepted, in whole or in part.

                                             Very truly yours,

                                             ___________________________________
                                             [Name of Bank]
Date:______________________                  By ________________________________
                                             Name: _____________________________
                                             Title: ____________________________

------------------------------
         (1)        As specified in the related Competitive Bid Request.
         (2)        Offers must be integral multiples of $1,000,000.
         (3)        As specified in the related Competitive Bid Request.
         (4)        As defined in the Loan Agreement.
         (5)        As defined in the Loan Agreement.
         (6)        Specify aggregate limitation if the sum of the individual
                    offers exceeds the aggregate amount the Quoting Bank is
                    willing to lend.

                                      -2-

<PAGE>

                                    EXHIBIT D

                         FORM OF COMPETITIVE BID REQUEST

BankBoston, N.A., as Managing Agent
115 Perimeter Center Place, N.E.
Suite 500
Atlanta, Georgia  30346
Attn:  Dan Stegemoeller

Ladies and Gentlemen:

         Reference is made to the Second Amended and Restated Revolving Loan
Agreement dated as of February 11, 2000, as from time to time in effect (the
"Loan Agreement"), by and among Alexandria Real Estate Equities, Inc.,
Alexandria Real Estate Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the
other borrowers whose names are set forth on the signature pages of the Loan
Agreement, and the other Persons which may become borrowers under the Loan
Agreement (collectively, the "Borrowers", all on a joint and several basis),
BankBoston, N.A., for itself and as Managing Agent, and the other Banks from
time to time party thereto. Terms defined in the Loan Agreement and not
otherwise defined herein are used herein as defined in the Loan Agreement.

         The undersigned officers of the Borrowers hereby give notice pursuant
to Section 2.4(b) of the Loan Agreement that they request Competitive Bids
pursuant to Section 2.4(b) of the Loan Agreement for the following proposed
Competitive Advances:

Proposed date of Competitive Advance:  _____________________

<TABLE>
<CAPTION>

                                      DURATION OF               BASIS FOR INTEREST
PRINCIPAL AMOUNT(1)               COMPETITIVE ADVANCE(2)         RATE CALCULATION(3)
----------------                  -------------------           ------------------
<S>                              <C>                            <C>
$_______________________         _______________________        _______________________

$_______________________         _______________________        _______________________

$_______________________         _______________________        _______________________
</TABLE>

-------------------------
         (1)     Each amount must be $10,000,000.00 or larger integral multiple
                 of $1,000,000.00.
         (2)     Duration must be a period of not less than 7 nor more than 180
                 days. No Requested Competitive Advance shall have a maturity
                 date which exceeds the Maturity Date or is on a date other
                 than a Banking Day.
         (3)     Specify whether interest rate bids are to be quoted as
                 "Absolute Rate Bid" or "LIBOR Margin Bid."

<PAGE>

         In connection with the request, the undersigned officers of the
Borrowers certify that:

         1. USE OF PROCEEDS. Such Competitive Advance shall be used for the
following purposes permitted by Section 5.9 of the Loan Agreement:

                                   [Describe]

         2. NO DEFAULT. The undersigned chief financial or chief accounting
officer of each Borrower certifies that Borrowers are and will be in compliance
with all covenants under the Loan Documents after giving effect to the making of
the Competitive Advance requested hereby. Attached hereto is a current
calculation of the Borrowing Base adjusted in the best good faith estimate of
the Borrower to the date hereof.

         3. REPRESENTATIONS TRUE. In connection with the request, the
Borrowers certify:

                  a. As to any Advance, now and as of the date of the requested
Advance, EXCEPT (i) for representations and warranties which expressly speak as
of a particular date or which are no longer true and correct as a result of a
change permitted by the Agreement or (ii) as disclosed by Borrowers and approved
in writing by the Requisite Banks, each representation and warranty made by
Borrowers in ARTICLE 4 of the Agreement (OTHER THAN Sections 4.4, 4.6 (first
sentence), 4.10 and 4.18 to the extent such representations relate expressly to
an earlier date) will be true and correct in all material respects, both
immediately before and after giving effect to such Advance, as though such
representations and warranties were made on and as of that date; and

                  b. As to any Advance, OTHER THAN matters described in SCHEDULE
4.10 to the Loan Agreement or required as of the Closing Date to be therein
described, there is no action, suit, proceeding or investigation pending or
threatened against or affecting Parent or any of its Subsidiaries or any
Property of any of them before any Governmental Agency that constitutes a
Material Adverse Effect.

         4. MAXIMUM AMOUNT. After giving effect to the requested Competitive
Advance, (a) the aggregate principal amount outstanding under the Competitive
Advance Notes (after giving effect to all amounts requested thereunder) PLUS the
Letter of Credit Exposure PLUS the aggregate amount of Swing Loans outstanding
will not exceed the LESSER OF (i) $75,000,000.00 or (ii) an amount equal to 33
1/3% of the Commitments, and (b) the aggregate principal amount outstanding
under the Notes (after giving effect to all amounts requested thereunder) PLUS
the Letter of Credit Exposure will not exceed the lesser of (A) the Line
Commitments or (B) the available Borrowing Base.

         This Competitive Bid Request is executed on _____________, ____ by an
officer of each Borrower. The undersigned, in such capacity, hereby certify each
and every matter contained herein to be true and correct.

                                      -2-

<PAGE>

         IN WITNESS WHEREOF, we have hereunto set our hands this _____ day of
______, 200__.

                                   ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                   By:      ___________________________
                                            Its:

                                   ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                   By:      ARE-QRS Corp., its general partner

                                            By:___________________________
                                                     Its:

                                   ARE-QRS CORP.

                                   By:___________________________
                                      Its:

                                   ARE ACQUISITIONS, LLC
                                   ARE-708 QUINCE ORCHARD, LLC
                                   ARE-940 CLOPPER ROAD, LLC
                                   ARE-1201 HARBOR BAY, LLC
                                   ARE-1401 RESEARCH BOULEVARD, LLC
                                   ARE-1500 EAST GUDE, LLC
                                   ARE-JOHN HOPKINS COURT, LLC

                                   By:      ARE-QRS Corp., their managing member

                                            By:___________________________
                                                    Its:

                                      -3-

<PAGE>

                                   ARE-4757 NEXUS CENTRE, LLC ARE-215
                                   COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                   ROAD, LLC ARE-150/154 TECHNOLOGY
                                   PARKWAY, LLC ARE-8000/9000/10000
                                   VIRGINIA MANOR, LLC ARE-19
                                   FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                   COLUMBIA, LLC ARE-11025 ROSELLE
                                   STREET, LLC ARE-170 WILLIAMS DRIVE,
                                   LLC ARE-3005 FIRST AVENUE, LLC
                                   ARE-15020 SHADY GROVE, LLC ARE-5
                                   TRIANGLE DRIVE, LLC ARE-50 WEST
                                   WATKINS MILL, LLC ARE-100 PHILLIPS
                                   PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                   LLC ARE-2001 ALICEANNA STREET, LLC
                                   ARE-3770 TANSY STREET, LLC ARE-10505
                                   ROSELLE STREET, LLC
                                   ARE-9363/9373/9393 TOWN CENTRE, LLC
                                   ARE-2425/2400/2450 GARCIA BAYSHORE,
                                   LLC

                                   By:    Alexandria Real Estate Equities, L.P.,
                                          their sole member

                                          By:    ARE-QRS Corp., its general
                                                 partner

                                                 By:____________________________
                                                          Its:

                                   ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                   ARE-280 POND STREET, LLC
                                   ARE-60 WESTVIEW, LLC

                                   By:    AREE-Holdings, L.P., their managing
                                          member

                                          By:    ARE-GP Holdings QRS Corp., its
                                                 general partner

                                                 By:_________________________
                                                          Its:

                                      -4-

<PAGE>

                                   ARE-5100/5110 CAMPUS DRIVE, L.P.
                                   ARE-702 ELECTRONIC DRIVE, L.P.

                                   By:    AREE-Holdings, L.P., their general
                                          partner

                                          By:    ARE-GP Holdings QRS Corp., its
                                                 general partner

                                                 By:_______________________
                                                          Its:

                                   ARE-10933 NORTH TORREY PINES, LLC
                                   ARE-11099 NORTH TORREY PINES, LLC

                                   By:    Alexandria Real Estate Equities, Inc.,
                                          their sole member

                                          By:_________________________
                                                   Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus,  Chief Executive Officer
Telecopier:       (626) 578-0770
Telephone:        (626) 578-0777

                                      -5-

<PAGE>

                                    EXHIBIT E

                                     FORM OF
                             COMPLIANCE CERTIFICATE

BankBoston, N.A.,
for itself and as Managing Agent
115 Perimeter Center Place,N.E.
Suite 500
Atlanta, Georgia 30346
Attn:  Dan Stegemoeller

[INSERT NAMES AND ADDRESSES
   OF OTHER BANKS]

Ladies and Gentlemen:

         Reference is made to the Second Amended and Restated Revolving Loan
Agreement dated as of February 11, 2000, as from time to time in effect (the
"Loan Agreement") by and among Alexandria Real Estate Equities, Inc., Alexandria
Real Estate Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the other
borrowers whose names are set forth on the signature pages of the Loan Agreement
and the other Persons which may become borrowers under the Loan Agreement
(collectively, the "Borrowers", all on a joint and several basis), BankBoston,
N.A., for itself and as Managing Agent, and the other Banks from time to time
party thereto. Terms defined in the Loan Agreement and not otherwise defined
herein are used herein as defined in the Loan Agreement.

         Pursuant to the Loan Agreement, the Borrowers are furnishing to you
herewith (or have most recently furnished to you) the financial statements of
the Borrowers and their respective Subsidiaries for the fiscal period ended
_______________ (the "Balance Sheet Date"). Such financial statements have been
prepared in accordance with Generally Accepted Accounting Principles and present
fairly the financial position of Borrowers and the Subsidiaries covered thereby
at the date thereof and the results of their operations for the periods covered
thereby, subject in the case of interim statements only to normal year-end audit
adjustments.

         This certificate is submitted in compliance with requirements of
Section 7.2 and Section 8.1(h) of the Loan Agreement. If this certificate is
provided under a provision other than Section 7.2, the calculations provided
below are made using the financial statements of the Borrowers and their
respective Subsidiaries as of the most recent Fiscal Quarter end adjusted in the
best good-faith estimate of the Borrowers to give effect to the making of a
Loan, extension of the Maturity Date, acquisition or disposition of property or
other event that occasions the preparation of this certificate; and the nature
of such event and the Borrowers' estimate of its effects are set

<PAGE>

forth in reasonable detail in an attachment hereto. The undersigned officers
are the chief financial or chief accounting officers of the Borrowers

         The undersigned officers have caused the provisions of the Loan
Agreement to be reviewed and have no knowledge of any Default or Event of
Default. (Note: If the signers do have knowledge of any Default or Event of
Default, the form of certificate should be revised to specify the Default or
Event of Default, the nature thereof and the actions taken, being taken or
proposed to be taken by the Borrowers with respect thereto.)

         The Borrowers are providing the information set forth in SCHEDULE I
attached hereto to demonstrate compliance as of the date hereof with the
covenants described therein.

         Pursuant to Section 5.17(b)(i) and (ii) of the Loan Agreement, the
Borrowers are hereby delivering to the Managing Agent and the Banks a list of
the Revenue-Producing Properties in the Unencumbered Asset Pool and a statement
of the Asset Values of such Revenue-Producing Properties as shown on SCHEDULE II
attached hereto. The undersigned hereby certifies that (i) the Revenue-Producing
Properties in the Unencumbered Asset Pool are in compliance with Section 5.17(a)
of the Loan Agreement; (ii) the statement of Asset Values is true and correct;
and (iii) the Revenue-Producing Properties in the Unencumbered Asset Pool comply
with the terms of Sections 4.17 and 4.19 of the Loan Agreement.

         Pursuant to Section 5.17(b)(iii) of the Loan Agreement, the Borrowers
are hereby delivering to the Managing Agent operating statements setting forth
the NOI and Net Capital Expenditures for each of the Revenue-Producing
Properties in the Unencumbered Asset Pool for the previous four (4) fiscal
quarters (or such shorter period that such statements are available for). The
undersigned hereby certifies that such operating statements are true and
correct.

         Pursuant to Section 7.1(n) of the Loan Agreement, the Borrowers are
hereby delivering to the Managing Agent and the Banks information regarding new
Subsidiaries and/or Controlled Entities of the Borrowers as set forth on
SCHEDULE III attached hereto.

         Pursuant to Section 7.1(o) of the Loan Agreement, the Borrowers are
hereby delivering to the Managing Agent and the Banks the information required
thereby as set forth on SCHEDULE IV attached hereto.

         The undersigned officers have caused the provisions of Section 5.10 of
the Loan Agreement regarding Hazardous Materials Laws to be reviewed and have no
knowledge of any events described therein. (Note: If the signers do have
knowledge of any such events, the form of certificate should be revised to
specify such event and any pertinent written material should be attached, all as
required by Section 5.10).

                                      -2-
<PAGE>

         IN WITNESS WHEREOF, we have hereunto set our hands this ___ day of
________________, 200__.

                                   ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                   By:      ___________________________
                                            Its:

                                   ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                   By:      ARE-QRS Corp., its general partner

                                            By:___________________________
                                                     Its:

                                   ARE-QRS CORP.

                                   By:___________________________
                                        Its:

                                   ARE ACQUISITIONS, LLC
                                   ARE-708 QUINCE ORCHARD, LLC
                                   ARE-940 CLOPPER ROAD, LLC
                                   ARE-1201 HARBOR BAY, LLC
                                   ARE-1401 RESEARCH BOULEVARD, LLC
                                   ARE-1500 EAST GUDE, LLC
                                   ARE-JOHN HOPKINS COURT, LLC

                                   By:      ARE-QRS Corp., their managing member

                                            By:___________________________
                                                     Its:

                                      -3-

<PAGE>

                                   ARE-4757 NEXUS CENTRE, LLC ARE-215
                                   COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                   ROAD, LLC ARE-150/154 TECHNOLOGY
                                   PARKWAY, LLC ARE-8000/9000/10000
                                   VIRGINIA MANOR, LLC ARE-19
                                   FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                   COLUMBIA, LLC ARE-11025 ROSELLE
                                   STREET, LLC ARE-170 WILLIAMS DRIVE,
                                   LLC ARE-3005 FIRST AVENUE, LLC
                                   ARE-15020 SHADY GROVE, LLC ARE-5
                                   TRIANGLE DRIVE, LLC ARE-50 WEST
                                   WATKINS MILL, LLC ARE-100 PHILLIPS
                                   PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                   LLC ARE-2001 ALICEANNA STREET, LLC
                                   ARE-3770 TANSY STREET, LLC ARE-10505
                                   ROSELLE STREET, LLC
                                   ARE-9363/9373/9393 TOWN CENTRE, LLC
                                   ARE-2425/2400/2450 GARCIA BAYSHORE,
                                   LLC

                                   By:    Alexandria Real Estate Equities, L.P.,
                                          their sole member

                                          By:   ARE-QRS Corp., its general
                                                partner

                                                By:____________________________
                                                         Its:

                                   ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                   ARE-280 POND STREET, LLC
                                   ARE-60 WESTVIEW, LLC

                                   By:    AREE-Holdings, L.P., their managing
                                          member

                                          By:   ARE-GP Holdings QRS Corp., its
                                                general partner

                                                By:_________________________
                                                         Its:

                                      -4-

<PAGE>

                                   ARE-5100/5110 CAMPUS DRIVE, L.P.
                                   ARE-702 ELECTRONIC DRIVE, L.P.

                                   By:    AREE-Holdings, L.P., their general
                                          partner

                                          By:    ARE-GP Holdings QRS Corp., its
                                                 general partner

                                                 By:_______________________
                                                          Its:

                                   ARE-10933 NORTH TORREY PINES, LLC
                                   ARE-11099 NORTH TORREY PINES, LLC

                                   By:    Alexandria Real Estate Equities, Inc.,
                                          their sole member

                                          By:_________________________
                                                   Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus, Chief Executive Officer
Telecopier:       (626) 578-0770
Telephone:        (626) 578-0777

                                      -5-

<PAGE>

                                   SCHEDULE I
                                 (TO EXHIBIT E)

                        COVENANT COMPLIANCE CALCULATIONS

<PAGE>

                                   SCHEDULE II
                                 (TO EXHIBIT E)

               INFORMATION REGARDING REVENUE-PRODUCING PROPERTIES
                  REQUIRED BY SECTION 5.17(B) OF LOAN AGREEMENT

<PAGE>

                                  SCHEDULE III
                                 (TO EXHIBIT E)

            INFORMATION REGARDING NEW SUBSIDIARIES AND/OR CONTROLLED
              ENTITIES REQUIRED BY SECTION 7.1(N) OF LOAN AGREEMENT

<PAGE>

                                   SCHEDULE IV
                                 (TO EXHIBIT E)

            INFORMATION REQUIRED BY SECTION 7.1(O) OF LOAN AGREEMENT

<PAGE>

                                    EXHIBIT F

                            FORM OF JOINDER AGREEMENT

         THIS JOINDER AGREEMENT ("Joinder Agreement") is executed as of
_______________, 200__, by _______________, a __________ corporation ("Joining
Party"), and delivered to BankBoston, N.A., as Managing Agent, pursuant to
Section 5.13 of the Second Amended and Restated Revolving Loan Agreement dated
as of February 11, 2000, as from time to time in effect (the "Loan Agreement"),
by and among Alexandria Real Estate Equities, Inc., Alexandria Real Estate
Equities, L.P., ARE-QRS Corp., ARE Acquisitions, LLC, the other borrowers whose
names are set forth on the signature pages of the Loan Agreement, and the other
Persons which may become borrowers under the Loan Agreement (collectively, the
"Borrowers", all on a joint and several basis), BankBoston, N.A., for itself and
as Managing Agent, and the other Banks from time to time party thereto. Terms
used but not defined in this Joinder Agreement shall have the meanings defined
for those terms in the Loan Agreement.

                                    RECITALS

                  A. Joining Party is required, pursuant to Section 5.13 of the
Loan Agreement, to become an additional Borrower under the Loan Agreement and a
party to all the other Loan Documents to which the existing Borrowers are a
party.

                  B. Joining Party expects to realize direct and indirect
benefits as a result of the availability to Borrowers of the credit facilities
under the Loan Agreement.

                  NOW, THEREFORE, Joining Party agrees as follows:

                                    AGREEMENT

                  1. JOINDER. By this Joinder Agreement, Joining Party hereby
becomes a "Borrower" under the Loan Agreement with respect to all the
Obligations of a Borrower now or hereafter incurred under the Loan Agreement and
the other Loan Documents. Joining Party agrees that Joining Party is and shall
be bound by, and hereby assumes, all representations, warranties, covenants,
terms, conditions, duties and waivers applicable to a Borrower under the Loan
Agreement and the other Loan Documents.

                  2. REPRESENTATIONS AND WARRANTIES OF JOINING PARTY. Joining
Party represents and warrants to Managing Agent that, as of the Effective Date,
except as disclosed in writing by Joining Party to Managing Agent on or prior to
the date hereof (which disclosures shall be deemed to amend the Schedules and
other disclosures delivered as contemplated in ARTICLE 4 of the Loan Agreement),
the representations and warranties contained in ARTICLE 4 of the Loan Agreement
(other than representations and warranties which expressly speak as of a
particular date or are no longer true and correct as a result of a change which
is permitted by the Loan Agreement) are true and correct in all material
respects as applied to Joining Party as a Borrower

<PAGE>

on and as of the Effective Date as though made on that date. All covenants
and agreements in the Loan Documents of the Borrowers and their Subsidiaries
are true and correct with respect to Joining Party and no Default or Event of
Default shall exist or might exist upon the Effective Date in the event that
Joining Party becomes a Borrower.

                  3. PROMISSORY NOTES. Joining Party hereby agrees that, as of
the Effective Date, each Note heretofore delivered to the Banks shall be a joint
and several obligation of Joining Party to the same extent as if executed and
delivered by Joining Party, and upon request by any Bank, will promptly endorse
such Bank=s Notes to confirm such obligation.

                  4. FURTHER ASSURANCES. Joining Party agrees to execute and
deliver such other instruments and documents and take such other action, as the
Managing Agent may reasonably request, in connection with the transactions
contemplated by this Joinder Agreement.

                  5. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE A
CONTRACTUAL OBLIGATION UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO
CONTRACTS EXECUTED AND PERFORMED IN THE STATE OF CALIFORNIA.

                  6. The effective date (the "Effective Date") of this Joinder
Agreement is __________, 200__.

                                         "Joining Party"

                                         ______________________________,
                                         a ______________ corporation

                                         By:______________________________
                                         Its:______________________________
                                                 [Printed Name and Title]

                                                  [CORPORATE SEAL]
ACKNOWLEDGED:

BANKBOSTON, N.A., as Managing Agent

By:______________________________
Its:______________________________
      [Printed Name and Title]

                                      -2-

<PAGE>

                                    EXHIBIT G

                                    LINE NOTE

$___________                                               ______________, 200__
                                                         Los Angeles, California

         FOR VALUE RECEIVED, the undersigned jointly and severally promise to
pay to the order of ____________________________________________ (the "Bank"),
the principal amount of ____________________________ DOLLARS ($___________) or
such lesser aggregate amounts as may be made as Advances under the Line
Commitment pursuant to the Loan Agreement referred to below (but excluding
Competitive Advances made pursuant to Section 2.4 of the Loan Agreement and
Swing Loans made pursuant to Section 2.5 of the Loan Agreement), payable as
hereinafter set forth. The undersigned jointly and severally promise to pay
interest on the principal amount hereof remaining unpaid from time to time from
the date hereon until the date of payment in full, payable as hereinafter set
forth.

      Reference is made to the Second Amended and Restated Revolving Loan
Agreement dated as of February 11, 2000 (the "Loan Agreement"), by and among
Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"),
Alexandria Real Estate Equities, L.P., a Delaware limited partnership
("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE
Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other
borrowers whose names are set forth on the signature pages of the Loan
Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter
become a party to the Loan Agreement as a borrower (collectively, with Parent,
Operating Partnership, QRS and ARE, the "Borrowers", all on a joint and several
basis), each bank whose name is set forth on the signature pages of the Loan
Agreement and each lender which may have become a party to the Loan Agreement
(collectively, the "Banks" and individually, a "Bank"), and BankBoston, N.A., as
Managing Agent. Terms defined in the Loan Agreement and not otherwise defined
herein are used herein with the meanings given those terms in the Loan
Agreement. This is one of the Line Notes referred to in the Loan Agreement, and
any holder hereof is entitled to all of the rights, remedies, benefits and
privileges provided for in the Loan Agreement as originally executed or as it
may from time to time be supplemented, modified or amended. The Loan Agreement,
among other things, contains provisions for acceleration of the maturity hereof
upon the happening of certain stated events upon the terms and conditions
therein specified.

         The principal indebtedness evidenced by this Line Note shall be payable
as provided in the Loan Agreement and in any event on the Maturity Date.

         Interest shall be payable on the outstanding daily unpaid principal
amount of each Advance hereunder from the date thereof until payment in full and
shall accrue and be payable at the rates and on the dates set forth in the Loan
Agreement, both before and after default and

<PAGE>

before and after maturity and judgment, with interest on overdue principal
and interest to bear interest at the rate set forth in Section 3.9 of the
Loan Agreement, to the fullest extent permitted by applicable Law.

         The amount of each payment hereunder shall be made to the Managing
Agent at the Managing Agent's Office for the account of the Bank in
immediately available funds not later than 1:00 p.m. (Boston, Massachusetts
time) on the day of payment (which must be a Banking Day). All payments
received after 1:00 p.m. (Boston, Massachusetts time) on any particular
Banking Day shall be deemed received on the next succeeding Banking Day. All
payments shall be made in lawful money of the United States of America.

         The Bank shall use its best efforts to keep a record of Advances made
by it and payments of principal received by it with respect to this Line Note,
and such record shall be presumptive evidence of the amounts owing under this
Line Note. Notwithstanding the foregoing, the failure by the Bank to keep such a
record shall not affect the undersigned=s obligation to pay the indebtedness
evidenced hereby.

         The undersigned hereby promise to pay all costs and expenses of any
rightful holder hereof incurred in collecting the undersigneds' obligations
hereunder or in enforcing or attempting to enforce any of such holder's rights
hereunder, including reasonable attorneys' fees and disbursements (including
reasonably allocated costs of legal counsel employed by the Managing Agent or
the holder), whether or not an action is filed in connection therewith.

         The undersigned hereby waive presentment, demand for payment, dishonor,
notice of dishonor, protest, notice of protest and any other notice or
formality, to the fullest extent permitted by applicable Laws.

         The undersigned agree that their liability hereunder is joint and
several, absolute and unconditional without regard to the liability of any other
party. All provisions of this Line Note shall apply to each of the undersigned.

         THIS LINE NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN THE STATE OF CALIFORNIA.

                                      -2-

<PAGE>

                                  ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                  By:      ___________________________
                                           Its:

                                  ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                  By:      ARE-QRS Corp., its general partner

                                           By:___________________________
                                                    Its:

                                  ARE-QRS CORP.

                                  By:___________________________
                                       Its:

                                  ARE ACQUISITIONS, LLC
                                  ARE-708 QUINCE ORCHARD, LLC
                                  ARE-940 CLOPPER ROAD, LLC
                                  ARE-1201 HARBOR BAY, LLC
                                  ARE-1401 RESEARCH BOULEVARD, LLC
                                  ARE-1500 EAST GUDE, LLC
                                  ARE-JOHN HOPKINS COURT, LLC

                                  By:      ARE-QRS Corp., their managing member

                                           By:___________________________
                                                    Its:

                                      -3-

<PAGE>

                                  ARE-4757 NEXUS CENTRE, LLC ARE-215
                                  COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                  ROAD, LLC ARE-150/154 TECHNOLOGY
                                  PARKWAY, LLC ARE-8000/9000/10000
                                  VIRGINIA MANOR, LLC ARE-19
                                  FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                  COLUMBIA, LLC ARE-11025 ROSELLE
                                  STREET, LLC ARE-170 WILLIAMS DRIVE,
                                  LLC ARE-3005 FIRST AVENUE, LLC
                                  ARE-15020 SHADY GROVE, LLC ARE-5
                                  TRIANGLE DRIVE, LLC ARE-50 WEST
                                  WATKINS MILL, LLC ARE-100 PHILLIPS
                                  PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                  LLC ARE-2001 ALICEANNA STREET, LLC
                                  ARE-3770 TANSY STREET, LLC ARE-10505
                                  ROSELLE STREET, LLC
                                  ARE-9363/9373/9393 TOWN CENTRE, LLC
                                  ARE-2425/2400/2450 GARCIA BAYSHORE, LLC

                                  By:      Alexandria Real Estate
                                           Equities, L.P., their sole
                                           member

                                           By:      ARE-QRS Corp., its general
                                                    partner

                                                    By:_________________________
                                                             Its:

                                  ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                  ARE-280 POND STREET, LLC
                                  ARE-60 WESTVIEW, LLC

                                  By:      AREE-Holdings, L.P., their managing
                                           member

                                           By:      ARE-GP Holdings QRS Corp.,
                                                    its general partner

                                                    By:_________________________
                                                             Its:

                                      -4-

<PAGE>

                                  ARE-5100/5110 CAMPUS DRIVE, L.P.
                                  ARE-702 ELECTRONIC DRIVE, L.P.

                                  By:     AREE-Holdings, L.P., their
                                          general partner

                                          By:      ARE-GP Holdings QRS Corp.,
                                                   its general partner

                                                   By:_______________________
                                                            Its:

                                  ARE-10933 NORTH TORREY PINES, LLC
                                  ARE-11099 NORTH TORREY PINES, LLC

                                  By:     Alexandria Real Estate Equities, Inc.,
                                          their sole member

                                          By:_________________________
                                                   Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus, Chief Executive Officer
Telecopier:       (626) 578-0770
Telephone:        (626) 578-0777

                                      -5-
<PAGE>

                                    EXHIBIT J

                               PRICING CERTIFICATE
                      ALEXANDRIA REAL ESTATE EQUITIES, INC.
                      ALEXANDRIA REAL ESTATE EQUITIES, L.P.
                                  ARE-QRS CORP.
                              ARE ACQUISITIONS, LLC
                               AND OTHER BORROWERS

TO:   BANKBOSTON, N.A., AS MANAGING AGENT

      Reference is made to the Second Amended and Restated Revolving Loan
Agreement dated as of February 11, 2000 (the "Loan Agreement"), by and among
Alexandria Real Estate Equities, Inc., a Maryland corporation ("Parent"),
Alexandria Real Estate Equities, L.P., a Delaware limited partnership
("Operating Partnership"), ARE-QRS Corp., a Maryland corporation ("QRS"), ARE
Acquisitions, LLC, a Delaware limited liability company ("ARE"), the other
borrowers whose names are set forth on the signature pages of the Loan
Agreement, each other Wholly-Owned Subsidiary of Parent which may hereafter
become a party to the Loan Agreement as a borrower (collectively, with
Parent, Operating Partnership, QRS and ARE, the "Borrowers", all on a joint
and several basis), each bank whose name is set forth on the signature pages
of the Loan Agreement and each lender which may have become a party to the
Loan Agreement (collectively, the "Banks" and individually, a "Bank"), and
BankBoston, N.A., as Managing Agent.

         I,_____________________, hereby certify that I am the
____________________ of Parent, the _______________ of Operating Partnership,
the_____________________ of QRS, and the______________________ of ARE, and
the ________ of the other Borrowers and that:

         I.    APPLICABLE PRICING LEVEL.  As of the Pricing Period commencing
on ___________________________, the Applicable Pricing Level was level _____.(1)

         The Applicable Pricing Level set forth above was determined on the
basis of the following:

         PARENT'S CREDIT RATING.  The Credit Rating of Parent was:

         LEVERAGE RATIO. For any date during a Pricing Period on which Parent
does not hold a credit rating of BBB - (or its equivalent) or better (subject to
the terms of the Loan Agreement),

--------------------
     (1)  Insert Level I, II, III, IV, V or VI in accordance with the terms
          of the Loan Agreement based upon determination of the Parent's
          Credit Rating or Leverage Ratio.

<PAGE>

the pricing level is determined using the Leverage Ratio as of the last day
of the Fiscal Quarter most recently ended prior to the commencement of that
Pricing Period. As of the last day of the Fiscal Quarter most recently ended
prior to the Pricing Period referred to above (the "Determination Date"), the
RATIO OF Total Liabilities as of that date TO Adjusted Tangible Assets as of
that date was ____________:1.00.

         The schedule attached hereto is provided to demonstrate the
calculation of the Leverage Ratio as of the last day of the Fiscal Quarter
most recently ended.

II. I further certify that the calculations made and the information
contained herein are derived from the books and records of Borrowers and
their Subsidiaries, as applicable, and that each and every matter correctly
reflects those books and records.

         IN WITNESS WHEREOF, I have signed this Certificate on this _____ day of
___________, 200__.

                                           _____________________________________

                                           _____________________________________

                                      -2-

<PAGE>

                                    EXHIBIT K

                            FORM OF REQUEST FOR LOAN

BankBoston, N.A., as Managing Agent
115 Perimeter Center Place, N.E.
Suite 500
Atlanta, Georgia 30346
Attn:  Dan Stegemoeller

Ladies and Gentlemen:

         Pursuant to the provisions of Section 2.1 of the Second Amended and
Restated Revolving Loan Agreement dated as of February 11, 2000, as from time
to time in effect (the "Loan Agreement"), among Alexandria Real Estate
Equities, Inc., Alexandria Real Estate Equities, L.P., ARE-QRS Corp., ARE
Acquisitions, LLC, the other borrowers whose names are set forth on the
signature pages of the Loan Agreement and the other Persons which may
hereafter become borrowers under the Loan Agreement (collectively, the
"Borrowers", all on a joint and several basis), BankBoston, N.A., for itself
and as Managing Agent, and the other Banks from time to time party thereto,
the Borrowers hereby request and certify as follows:

         1.  LOAN. The Borrowers hereby request a Committed Loan under Section
2.1 of the Loan Agreement:

                  Principal Amount: $

                  LIBOR Rate or Alternate Base Rate:

                  Drawdown Date:                , 200__

                  Interest Period:

by credit to the general account of the Borrowers with the Managing Agent at the
Managing Agent's Office.

         [IF THE REQUESTED LOAN IS A SWING LOAN AND THE BORROWERS DESIRE FOR
SUCH LOAN TO BE A LIBOR RATE LOAN FOLLOWING ITS CONVERSION AS PROVIDED IN
SECTION 2.5(D), SPECIFY THE INTEREST PERIOD FOLLOWING CONVERSION:
_________].

         2.  USE OF PROCEEDS. Such Committed Loan shall be used for the
following purposes permitted by Section 5.9 of the Loan Agreement:

                                   [Describe]
<PAGE>

         3.  NO DEFAULT. The undersigned chief financial or chief accounting
officer of each Borrower certifies that Borrowers are and will be in
compliance with all covenants under the Loan Documents after giving effect to
the making of the Committed Loan requested hereby.

         4.  REPRESENTATIONS TRUE. In connection with the request, the
Borrowers certify:

             a. As to any Advance, now and as of the date of the
requested Advance, EXCEPT (i) for representations and warranties which
expressly speak as of a particular date or which are no longer true and
correct as a result of a change permitted by the Agreement or (ii) as
disclosed by Borrowers and approved in writing by the Requisite Banks, each
representation and warranty made by Borrowers in ARTICLE 4 of the Agreement
(OTHER THAN Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent
such representations relate expressly to an earlier date) will be true and
correct in all material respects, both immediately before and after giving
effect to such Advance, as though such representations and warranties were
made on and as of that date; and

             b. As to any Advance, OTHER THAN matters described in SCHEDULE
4.10 to the Loan Agreement or required as of the Closing Date to be therein
described, there is no action, suit, proceeding or investigation pending or
threatened against or affecting Parent or any of its Subsidiaries or any
Property of any of them before any Governmental Agency that constitutes a
Material Adverse Effect.

         5.  BORROWING BASE. Attached hereto is a current calculation of the
Borrowing Base adjusted in the best good faith estimate of the Borrower to
the date hereof.

         6.  OTHER CONDITIONS. All other conditions to the making of the
Committed Loan requested hereby set forth in Article 8 of the Loan Agreement
have been satisfied.

         7.  DATE COMMITTED LOAN IS MADE. Except to the extent, if any,
specified by notice actually received by the Managing Agent prior to the date
the Committed Loan is made, the foregoing representations and warranties
shall be deemed to have been made by the Borrowers on and as of such date.

         8.  DEFINITIONS. Terms defined in the Loan Agreement are used herein
with the meanings so defined.

                                     -2-
<PAGE>

         IN WITNESS WHEREOF, we have hereunto set our hands this _____ day of
_______________, 200__.

                                 ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                 By:      ___________________________
                                          Its:

                                 ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                 By:      ARE-QRS Corp., its general partner

                                          By:___________________________
                                                   Its:

                                 ARE-QRS CORP.

                                 By:___________________________
                                    Its:

                                 ARE ACQUISITIONS, LLC
                                 ARE-708 QUINCE ORCHARD, LLC
                                 ARE-940 CLOPPER ROAD, LLC
                                 ARE-1201 HARBOR BAY, LLC
                                 ARE-1401 RESEARCH BOULEVARD, LLC
                                 ARE-1500 EAST GUDE, LLC
                                 ARE-JOHN HOPKINS COURT, LLC

                                 By:  ARE-QRS Corp., their managing member

                                      By:___________________________
                                           Its:

                                     -3-
<PAGE>

                                      ARE-4757 NEXUS CENTRE, LLC ARE-215
                                      COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                      ROAD, LLC ARE-150/154 TECHNOLOGY
                                      PARKWAY, LLC ARE-8000/9000/10000
                                      VIRGINIA MANOR, LLC ARE-19
                                      FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                      COLUMBIA, LLC ARE-11025 ROSELLE
                                      STREET, LLC ARE-170 WILLIAMS DRIVE,
                                      LLC ARE-3005 FIRST AVENUE, LLC
                                      ARE-15020 SHADY GROVE, LLC ARE-5
                                      TRIANGLE DRIVE, LLC ARE-50 WEST
                                      WATKINS MILL, LLC ARE-100 PHILLIPS
                                      PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                      LLC ARE-2001 ALICEANNA STREET, LLC
                                      ARE-3770 TANSY STREET, LLC ARE-10505
                                      ROSELLE STREET, LLC
                                      ARE-9363/9373/9393 TOWN CENTRE, LLC
                                      ARE-2425/2400/2450 GARCIA BAYSHORE,
                                      LLC

                                      By:      Alexandria Real Estate
                                               Equities, L.P., their sole
                                               member

                                               By:  ARE-QRS Corp., its general
                                                    partner

                                                    By:_________________________
                                                        Its:

                                      ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                      ARE-280 POND STREET, LLC
                                      ARE-60 WESTVIEW, LLC

                                      By:      AREE-Holdings, L.P., their
                                               managing member

                                               By:  ARE-GP Holdings QRS Corp.,
                                                    its general partner

                                                    By:_________________________
                                                        Its:

                                     -4-
<PAGE>

                                   ARE-5100/5110 CAMPUS DRIVE, L.P.
                                   ARE-702 ELECTRONIC DRIVE, L.P.

                                   By:    AREE-Holdings, L.P., their general
                                          partner

                                          By:  ARE-GP Holdings QRS Corp., its
                                               general partner

                                               By:_______________________
                                                   Its:

                                          ARE-10933 NORTH TORREY PINES, LLC
                                          ARE-11099 NORTH TORREY PINES, LLC

                                          By:  Alexandria Real Estate Equities,
                                               Inc., their sole member

                                               By:_________________________
                                                    Its:
Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus, Chief Executive Officer
Telecopier:       (626) 578-0770
Telephone:        (626) 578-0777

                                     -5-

<PAGE>

                                    EXHIBIT L

                            JOINT BORROWER PROVISIONS

     1.  ATTORNEY-IN-FACT. For the purpose of implementing the joint borrower
provisions of the Loan Documents, Borrowers hereby irrevocably appoint each
other as their agent and attorney-in-fact for all purposes of the Loan
Documents, INCLUDING the giving and receiving of notices and other
communications.

     2.  ACCOMMODATION. It is understood and agreed that the handling of this
credit facility on a joint borrowing basis as set forth in this Agreement is
solely as an accommodation to the Borrowers and at their request.
Accordingly, the Managing Agent and the Banks are entitled to rely, and shall
be exonerated from any liability for relying upon, any Loan Request or
Competitive Bid Request made by a purported officer of any Borrower without
the need for any consent or other authorization of any other Borrower and
upon any information or certificate provided on behalf of any Borrower by a
purported officer of such Borrower.

     3.  RIGHTS OF MANAGING AGENT AND THE BANKS. Each Borrower acknowledges
that, except to the extent of the borrowings made by it and the proceeds
received by it, the Obligations undertaken by it under the Loan Documents
will or may guarantee Obligations of other Borrowers (the "Guaranteed
Obligations") and, in full recognition of that fact, each Borrower consents
and agrees that the Managing Agent for the benefit of the Banks may, at any
time and from time to time, agree with any one Borrower to, without notice or
demand to the other Borrowers, and without affecting the enforceability of
the Obligations under any Loan Document:

         a.   supplement, modify, amend, extend, renew, or otherwise change
the time for payment or the terms of the Guaranteed Obligations or any part
thereof, including any increase or decrease of the rate(s) of interest
thereon;

         b.   supplement, modify, amend or waive, or enter into or give any
agreement, approval or consent with respect to, the Guaranteed Obligations or
any part thereof or any of the Loan Documents or any security or guaranties,
or any condition, covenant, default, remedy, right, representation or term
thereof or thereunder;

         c.   accept new or additional instruments, documents or agreements
relative to any of the Loan Documents or the Guaranteed Obligations or any
part thereof;

         d.   accept partial payments on the Guaranteed Obligations;

         e.   receive and hold additional security or guaranties for the
Guaranteed Obligations or any part thereof;

<PAGE>

         f.   release, reconvey, terminate, waive, abandon, subordinate,
exchange, substitute, transfer and enforce any security or guaranties for the
Guaranteed Obligations, and apply any security and direct the order or manner
of sale thereof as the Managing Agent, on behalf of the Banks, in its sole
and absolute discretion may determine;

         g.   release any Person or any guarantor from any personal liability
with respect to the Guaranteed Obligations or any part thereof;

         h.   settle, release on terms satisfactory to the Managing Agent and
the Banks or by operation of applicable laws or otherwise liquidate or
enforce any Guaranteed Obligations and any security or guaranty therefor in
any manner, consent to the transfer of any security and bid and purchase at
any sale; and

         i.   consent to the merger, change or any other restructuring or
termination of the existence of any Borrower or any other Person, and
correspondingly restructure the Guaranteed Obligations, and any such merger,
change, restructuring or termination shall not affect the liability of the
other Borrowers or the continuing existence of any Lien securing the
Guaranteed Obligations under any Loan Document to which such Borrowers are
party or the enforceability hereof or thereof with respect to all or any part
of the Guaranteed Obligations.

         Upon the occurrence of and during the continuance of any Event of
Default, the Managing Agent and the Banks may enforce each Loan Document
independently as to each Borrower and independently of any other remedy or
security the Managing Agent and the Banks at any time may have or hold in
connection with the Guaranteed Obligations, and it shall not be necessary for
the Managing Agent and the Banks to marshal assets in favor of any of the
Borrowers or any other Person or to proceed upon or against and/or exhaust
any other security or remedy before proceeding to enforce such Loan Document.
Each of the Borrowers expressly waives the benefit of all appraisement,
valuation, stay, extension, homestead, exemption or redemption laws which
such Person may claim or seek to take advantage of in order to prevent or
hinder the enforcement of any of the Loan Documents or the exercise by the
Banks or the Managing Agent of any of their respective remedies under the
Loan Documents, and the Borrowers further expressly waive any right to
require the Managing Agent or any Bank to marshal assets in favor of any
Borrower or any other Person or to proceed against any other Person or any
collateral provided by any other Person, and agrees that the Managing Agent
and the Banks may proceed against any Persons and/or collateral in such order
as they shall determine in their sole and absolute discretion. The Managing
Agent and the Banks may file a separate action or actions against any
Borrower, whether action is brought or prosecuted with respect to any other
security or against any other Person, or whether any other Person is joined
in any such action or actions. Each of the Borrowers expressly waives the
benefit of any statute(s) of limitations affecting its liability under the
Loan Documents or the enforcement of the Guaranteed Obligations or any Liens
created or granted by any Loan Document. The rights of the Managing Agent and
the Banks hereunder and under the Loan Documents shall be reinstated and
revived, and the enforceability of this Agreement shall continue, with
respect to any amount at any time paid on account of the Obligations which
thereafter shall be required to be restored or returned by the Managing Agent
or any Bank upon the bankruptcy, insolvency or reorganization

                                     -2-

<PAGE>

of any Borrower or any other Person, or otherwise, all as though such amount
had not been paid. The enforceability of the Loan Documents at all times
shall remain effective as to each Borrower as to the Guaranteed Obligations
of such Borrower even though such Guaranteed Obligations, INCLUDING any part
thereof may be or hereafter may become invalid or otherwise unenforceable as
against any other Borrowers or any other Person and whether or not any of the
other Borrowers or any other Person shall have any personal liability with
respect thereto. Each of the Borrowers expressly waives in respect of the
Guaranteed Obligations any and all defenses now or hereafter arising or
asserted by reason of (a) any disability or other defense of any of the other
Borrowers or any other Person with respect to the Guaranteed Obligations, (b)
the unenforceability or invalidity of any security or guaranty for the
Guaranteed Obligations or the lack of perfection or continuing perfection or
failure of priority of any security for the Guaranteed Obligations, (c) the
cessation for any cause whatsoever of the liability of any other Borrower or
any other Person (OTHER THAN by reason of the full payment and performance of
all Obligations), (d) any failure of the Managing Agent or any Bank to
marshal assets in favor of any of the other Borrowers or any other Person,
(e) except as otherwise required by law or as provided in any Loan Document,
any failure of the Managing Agent or any Bank to give notice of sale or other
disposition of collateral to any of the other Borrowers or any other Person
or any defect in any notice that may be given in connection with any sale or
disposition of collateral, (f) except as otherwise required by law or as
provided in any Loan Document, any failure of the Managing Agent or any Bank
to comply with applicable laws in connection with the sale or other
disposition of any collateral or other security for any Obligation, including
without limitation, any failure of Managing Agent or any Bank to conduct a
commercially reasonable sale or other disposition of any collateral or other
security for any Guaranteed Obligation, (g) any incapacity, lack of
authority, death or disability of the other Borrowers or any other Person,
(h) any failure of the Banks or Managing Agent to give notice of the
existence, creation or incurring of any new or additional indebtedness or
other obligation or of any action or nonaction on the part of any other
Person in connection with the Loan Documents, including the waiver of any
conditions to the making of any advance of proceeds of any Loan, (i) any
failure on the part of the Banks or Managing Agent to ascertain the extent or
nature of any assets of any Person or any insurance or other rights with
respect thereto, or the liability of any party liable for the Loan Documents
or the obligations evidenced or secured thereby, (j) except as specifically
required in the Loan Documents, any notice of intention to accelerate any of
the Obligations or any notice of acceleration of the Obligations, (k) any
lack of acceptance or notice of acceptance of this Agreement by Banks or
Managing Agent, (l) any lack of presentment, demand, protest, or notice of
dishonor, demand, protest or nonpayment with respect to any indebtedness or
obligations under any of the Loan Documents, (m) except as specifically
required in the Loan Documents, any lack of other notices to which the
Borrowers, or any of them, might otherwise be entitled, (n) any invalidity or
irregularity, in whole or in part, of any one or more of the Loan Documents,
(o) the inaccuracy of any representation or other provision contained in any
Loan Document, (p) any sale or assignment of the Loan Documents, in whole or
in part, (q) any sale or assignment by any of the Borrowers of any assets of
such Person, or any portion thereof, whether or not consented to by the Banks
or Managing Agent, (r) the dissolution or termination of existence of any
Borrower or any other Person, (s) the voluntary or involuntary liquidation,
sale or other disposition of all or substantially all of the assets of any
Borrower, (t) any failure or delay of Managing Agent or the Banks to commence
an action against Borrowers, to assert or enforce any remedies against
Borrowers under the Notes or the

                                     -3-
<PAGE>

Loan Documents, or to realize upon any security, (u) the compromise,
settlement, release or termination of any or all of the obligations of a
Borrower under the Notes or the Loan Documents, (v) any act or omission of
the Managing Agent or any Bank or others that directly or indirectly results
in or aids the discharge or release of any other Borrower or any other Person
or any other security or guaranty for the Guaranteed Obligations by operation
of law or otherwise, (w) any law which provides that the obligation of a
surety or guarantor must neither be larger in amount nor in other respects
more burdensome than that of the principal or which reduces a surety's or
guarantor's obligation in proportion to the principal obligation, (x) any
failure of the Managing Agent or any Bank to file or enforce a claim in any
bankruptcy or other proceeding with respect to any Person, (y) the election
by the Managing Agent or any Bank, in any bankruptcy proceeding of any
Person, of the application or non-application of Section 1111(b)(2) of the
United States Bankruptcy Code, (z) any extension of credit or the grant of
any lien under Section 364 of the United States Bankruptcy Code, (aa) any use
of cash collateral under Section 363 of the United States Bankruptcy Code,
(bb) any agreement or stipulation with respect to the provision of adequate
protection in any bankruptcy proceeding of any Person, (cc) the avoidance of
any Lien in favor of the Managing Agent or the Banks for any reason, (dd) any
bankruptcy, insolvency, reorganization, arrangement, readjustment of debt,
liquidation or dissolution proceeding commenced by or against any Person,
including any discharge of, or bar or stay against collecting, all or any of
the Guaranteed Obligations (or any interest thereon) in or as a result of any
such proceeding, (ee) to the extent permitted, the benefits of any form of
one-action rule, or (ff) to the fullest extent permitted by law, any other
legal, equitable or surety defenses whatsoever to which a Borrower might
otherwise be entitled with respect to the Guaranteed Obligations.

     4.  FINANCIAL INFORMATION. Each of the Borrowers represents and warrants
to the Managing Agent and the Banks that such Borrower has established
adequate means of obtaining from the other Borrowers, on a continuing basis,
financial and other information pertaining to the businesses, operations and
condition (financial and otherwise) of the other Borrowers and their
respective assets, and each of the Borrowers now is and hereafter will be
completely familiar with the businesses, operations and condition (financial
and otherwise) of the other Borrowers and their respective assets. Each of
the Borrowers hereby expressly waives and relinquishes any duty on the part
of the Managing Agent and the Banks to disclose to such Borrower any matter,
fact or thing related to the businesses, operations or condition (financial
or otherwise) of any other Borrower or such other Borrower's assets, whether
now known or hereafter known by the Managing Agent and the Banks during the
life of this Agreement, whether such matter, fact or thing materially
increases the risks to such Borrower or not.

     5.  WAIVERS CONCERNING LIENS. In the event that all or any part of the
Guaranteed Obligations at any time are secured by any one or more deeds of
trust, security deeds or mortgages creating or granting Liens on any
interests in Real Property, each of the Borrowers authorizes the Managing
Agent and the Banks, upon the occurrence of and during the continuance of any
Event of Default, at their sole option, without notice or demand and without
affecting any Obligations, the enforceability of the Guaranteed Obligations
under this Agreement, or the validity or enforceability of any Liens of the
Managing Agent and the Banks on any collateral securing the Guaranteed
Obligations, to foreclose any or all of such deeds of

                                     -4-
<PAGE>

trust, security deeds or mortgages by judicial or nonjudicial sale. Insofar
as the Liens created by the Loan Documents secure the Guaranteed Obligations
of other Persons (a) each of the Borrowers expressly waives any defenses to
the enforcement of this Agreement or the other Loan Documents or any Liens
created or granted hereby or by the other Loan Documents or to the recovery
by the Managing Agent and the Banks against any other Borrower or any other
Person liable therefor of any deficiency after a judicial or nonjudicial
foreclosure or sale, even though such a foreclosure or sale may impair the
subrogation rights of such Borrower and may preclude any of them from
obtaining reimbursement or contribution from any other Person and (b) each of
the Borrowers expressly waives any defenses or benefits that may be derived
from California Code of Civil Procedure Sections 580a, 580b, 580d or 726, or
comparable provisions of the laws of any other jurisdiction and all other
suretyship defenses it otherwise might or would have under California law or
other applicable law.

     6.  CONTRIBUTION. Notwithstanding anything to the contrary elsewhere
contained herein or in any other Loan Document to which any Borrower is a
party, each of the Borrowers hereby waives with respect to each other
Borrower and its respective successors and assigns (including any surety) and
any other party any and all rights at or in equity, to subrogation, to
reimbursement, to exoneration, to contribution, to indemnity, to setoff or to
any other rights that could accrue to a surety against a principal, to a
guarantor against a maker or obligor, to an accommodation party against the
party accommodated, or to a holder or transferee against a maker and which
each of the Borrowers may have or hereafter acquire against any other
Borrower or any other party in connection with or as a result of any
Borrower's execution, delivery and/or performance of this Agreement or any
other Loan Document to which any such Borrower is a party. In connection with
the foregoing, each of the Borrowers expressly waives any and all rights of
subrogation to the Banks or Managing Agent against the other of the
Borrowers, and each of the Borrowers hereby waives any rights to enforce any
remedy which the Banks or Managing Agent may have against the other of the
Borrowers and any rights to participate in any collateral or any other assets
of the other Borrowers. Each of the Borrowers agrees that it shall not have
or assert any such rights against any other Borrower or any such Borrower's
successors and assigns or any other Person (INCLUDING any surety, Managing
Agent or any Bank), either directly or as an attempted setoff to any action
commenced against such Borrower by the other such Borrower (as borrower or in
any other capacity) or any other Person. Each of the Borrowers hereby
acknowledges and agrees that this waiver is intended to benefit the Managing
Agent and the Banks and shall not limit or otherwise affect any of the
Borrowers' liability hereunder, under any other Loan Document to which any
Borrower is a party, or the enforceability hereof or thereof. Without
limiting the generality of the foregoing and to the extent otherwise
applicable, each of the Borrowers hereby waives discharge by waiving all
defenses based on suretyship or impairment of collateral securing the
Guaranteed Obligations.

     7.  RELIANCE BY BANKS AND MANAGING AGENT. Each of the Borrowers warrants
and agrees that each of the waivers and consents set forth herein is made
with full knowledge of its significance and consequences, with the
understanding that events giving rise to any defense waived may diminish,
destroy or otherwise adversely affect rights which each of the Borrowers
otherwise may have against the other Borrowers, the Managing Agent, the
Banks, or others, or against any collateral securing the Guaranteed
Obligations. If any of the waivers or consents

                                     -5-
<PAGE>

herein are determined to be contrary to any applicable law or public policy,
such waivers and consents shall be effective to the maximum extent permitted
by law.

     8.  APPLICABILITY. For purposes of this Agreement, the provisions of
Paragraphs 5 and 6 above shall apply and be effective only to the extent that
any court, tribunal or other governmental agency shall have deemed Borrowers
to be sureties of one another rather than co-borrowers.

     9.  WAIVER OF AUTOMATIC OR SUPPLEMENTAL STAY. Each of the Borrowers
represents, warrants and covenants to the Banks and Managing Agent that in
the event of the filing of any voluntary or involuntary petition in
bankruptcy by or against any Borrower at any time following the execution and
delivery of this Agreement, none of the other Borrowers shall seek a
supplemental stay or any other relief, whether injunctive or otherwise,
pursuant to Section 105 of the United States Bankruptcy Code or any other
provision of the United States Bankruptcy Code, to stay, interdict,
condition, reduce or inhibit the ability of the Banks or Managing Agent to
enforce any rights it has by virtue of this Agreement, the Loan Documents, or
at law or in equity, or any other rights the Banks or Managing Agent has,
whether now or hereafter acquired, against any other Borrower or against any
property owned by any other Borrower.

     10. SUBORDINATION. In addition to and without in any way limiting the
foregoing, each of the Borrowers hereby subordinates any and all indebtedness
it may now or hereafter owe to such other Borrower to all indebtedness of the
Borrowers to the Banks and Managing Agent, and agrees with the Banks and
Managing Agent that neither of the Borrowers shall claim any offset or other
reduction of such Borrower's obligations hereunder because of any such
indebtedness and shall not take any action to obtain any collateral or any
other assets of the other Borrower.

                                     -6-
<PAGE>

                                    EXHIBIT M

                             FORM OF SWING LOAN NOTE

$_____________                 Los Angeles, California          __________, 2000

         FOR VALUE RECEIVED, the undersigned jointly and severally promise to
pay to ______________________________________ or order, in accordance with the
terms of that certain Second Amended and Restated Revolving Loan Agreement dated
as of February 11, 2000 (the "Loan Agreement"), as from time to time in effect,
among the undersigned, BankBoston, N.A., for itself and as Managing Agent, and
such other Banks as may be from time to time named therein, to the extent not
sooner paid, on or before the Maturity Date the principal sum of
______________________________________ and No/100 Dollars ($________________),
or such amount as may be advanced by the payee hereof under the Loan Agreement
as Swing Loans with daily interest from the date hereof, computed as provided in
the Loan Agreement, on the principal amount hereof from time to time unpaid, at
a rate per annum on each portion of the principal amount which shall at all
times be equal to the rate of interest applicable to such portion in accordance
with the Loan Agreement, and with interest on overdue principal and, to the
extent permitted by applicable law, on overdue installments of interest and late
charges at the rates provided in the Loan Agreement. Interest shall be payable
on the dates specified in the Loan Agreement, except that all accrued interest
shall be paid at the stated or accelerated maturity hereof or upon the
prepayment in full hereof. Capitalized terms used herein and not otherwise
defined herein shall have the meanings set forth in the Loan Agreement.

         This is the "Swing Loan Note" referred to in the Loan Agreement, and
any holder hereof is entitled to all of the rights, remedies, benefits and
privileges provided for in the Loan Agreement as originally executed or as it
may from time to time be supplemented, modified or amended. The Loan Agreement,
among other things, contains provisions for acceleration of the maturity hereof
upon the happening of certain stated events upon the terms and conditions
therein specified.

         The principal indebtedness evidenced by this Swing Loan Note shall be
payable as provided in the Loan Agreement and in any event on the Maturity Date.

         Interest shall be payable on the outstanding daily unpaid principal
amount of each Swing Loan made hereunder from the date thereof until payment in
full and shall accrue and be payable at the rates and on the dates set forth in
the Loan Agreement, both before and after default and before and after maturity
and judgment, with interest on overdue principal and interest to bear interest
at the rate set forth in Section 3.9 of the Loan Agreement, to the fullest
extent permitted by applicable Law.

         The amount of each payment hereunder shall be made to the Managing
Agent at the Managing Agent's Office for the account of the Swing Loan Bank in
immediately available funds not later than 1:00 p.m. (Boston, Massachusetts
time) on the day of payment (which must be a

<PAGE>

Banking Day). All payments received after 1:00 p.m. (Boston, Massachusetts
time) on any particular Banking Day shall be deemed received on the next
succeeding Banking Day. All payments shall be made in lawful money of the
United States of America.

         The Swing Loan Bank shall use its best efforts to keep a record of
Swing Loans made by it and payments of principal received by it with respect to
this Swing Loan Note, and such record shall be presumptive evidence of the
amounts owing under this Swing Loan Note. Notwithstanding the foregoing, the
failure by the Swing Loan Bank to keep such a record shall not affect the
undersigneds obligation to pay the indebtedness evidenced hereby.

         The undersigned hereby promise to pay all costs and expenses of any
rightful holder hereof incurred in collecting the undersigneds' obligations
hereunder or in enforcing or attempting to enforce any of such holder's rights
hereunder, including reasonable attorneys' fees and disbursements (including
reasonably allocated costs of legal counsel employed by the Managing Agent or
the holder), whether or not an action is filed in connection therewith.

         The undersigned hereby waive presentment, demand for payment, dishonor,
notice of dishonor, protest, notice of protest and any other notice or
formality, to the fullest extent permitted by applicable Laws.

         The undersigned agree that their liability hereunder is joint and
several, absolute and unconditional without regard to the liability of any other
party. All provisions of this Swing Loan Note shall apply to each of the
undersigned.

         THIS SWING LOAN NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN THE STATE OF CALIFORNIA.

                                      -2-

<PAGE>

                                 ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                 By:      ___________________________
                                          Its:

                                 ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                 By:      ARE-QRS Corp., its general partner

                                          By:___________________________
                                                   Its:

                                 ARE-QRS CORP.

                                 By:___________________________
                                      Its:

                                 ARE ACQUISITIONS, LLC
                                 ARE-708 QUINCE ORCHARD, LLC
                                 ARE-940 CLOPPER ROAD, LLC
                                 ARE-1201 HARBOR BAY, LLC
                                 ARE-1401 RESEARCH BOULEVARD, LLC
                                 ARE-1500 EAST GUDE, LLC
                                 ARE-JOHN HOPKINS COURT, LLC

                                 By:      ARE-QRS Corp., their managing member

                                          By:___________________________
                                                   Its:

                                       -3-

<PAGE>

                                            ARE-4757 NEXUS CENTRE, LLC ARE-215
                                            COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                            ROAD, LLC ARE-150/154 TECHNOLOGY
                                            PARKWAY, LLC ARE-8000/9000/10000
                                            VIRGINIA MANOR, LLC ARE-19
                                            FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                            COLUMBIA, LLC ARE-11025 ROSELLE
                                            STREET, LLC ARE-170 WILLIAMS DRIVE,
                                            LLC ARE-3005 FIRST AVENUE, LLC
                                            ARE-15020 SHADY GROVE, LLC ARE-5
                                            TRIANGLE DRIVE, LLC ARE-50 WEST
                                            WATKINS MILL, LLC ARE-100 PHILLIPS
                                            PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                            LLC ARE-2001 ALICEANNA STREET, LLC
                                            ARE-3770 TANSY STREET, LLC ARE-10505
                                            ROSELLE STREET, LLC
                                            ARE-9363/9373/9393 TOWN CENTRE, LLC
                                            ARE-2425/2400/2450 GARCIA BAYSHORE,
                                            LLC

                                            By:      Alexandria Real Estate
                                                     Equities, L.P., their sole
                                                     member

                                                     By:   ARE-QRS Corp., its
                                                           general partner

                                                           By:________________
                                                                    Its:

                                            ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                            ARE-280 POND STREET, LLC
                                            ARE-60 WESTVIEW, LLC

                                            By:      AREE-Holdings, L.P., their
                                                     managing member

                                                     By:   ARE-GP Holdings QRS
                                                           Corp., its general
                                                           partner

                                                           By:_______________
                                                              Its:

                                      -4-

<PAGE>

                                           ARE-5100/5110 CAMPUS DRIVE, L.P.
                                           ARE-702 ELECTRONIC DRIVE, L.P.

                                           By:    AREE-Holdings, L.P., their
                                                  general partner

                                                  By:    ARE-GP Holdings QRS
                                                         Corp., its general
                                                         partner

                                                         By:____________________
                                                                  Its:

                                           ARE-10933 NORTH TORREY PINES, LLC
                                           ARE-11099 NORTH TORREY PINES, LLC

                                           By:    Alexandria Real Estate
                                                  Equities, Inc., their sole
                                                  member

                                                  By:_________________________
                                                          Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus, Chief Executive Officer
Telecopier:    (626) 578-0770
Telephone:     (626) 578-0777

                                      -5-

<PAGE>

                                                  EXHIBIT N

                                      FORM OF LETTER OF CREDIT REQUEST

BankBoston, N.A., for itself and as Agent
115 Perimeter Center Place, Suite 500
Atlanta, Georgia 30346
Attn: Dan Stegemoeller
(770) 390-8434 (FAX)

Ladies and Gentlemen:

         Pursuant to the provisions of Section 2.6 of the Second Amended and
Restated Revolving Loan Agreement dated as of February 11, 2000, as from time to
time in effect (the "Loan Agreement"), among the undersigned (the "Borrowers"),
BankBoston, N.A., for itself and as Managing Agent and the other Banks from time
to time party thereto, the Borrowers hereby request and certify as follows:

         1. LETTER OF CREDIT. The Borrowers hereby request a Letter of Credit to
be issued under Section 2.6 of the Loan Agreement:

                  Date:  ______________________________________.

                  Principal Amount:  $_________________________.

                  Beneficiary: ________________________________.

                  Expiration Date: ____________________________.

         2. USE OF PROCEEDS. Such Letter of Credit shall be used for the
purposes permitted by Section 5.9 of the Loan Agreement.

         3. NO DEFAULT. The undersigned Responsible Official of the Borrowers
certifies that the Borrowers are and will be in compliance with all covenants
under the Loan Documents after giving effect to the issuance of the Letter of
Credit requested hereby.

         4. REPRESENTATIONS TRUE. In connection with the request, the Borrowers
certify:

                  a. As to the Letter of Credit, now and as of the date of the
requested Letter of Credit, EXCEPT (i) for representations and warranties which
expressly speak as of a particular date or which are no longer true and correct
as a result of a change permitted by the Agreement or (ii) as disclosed by
Borrowers and approved in writing by the Requisite Banks, each representation
and warranty made by Borrowers in ARTICLE 4 of the Agreement (OTHER THAN
Sections 4.4, 4.6 (first sentence), 4.10 and 4.18 to the extent such
representations relate expressly

<PAGE>

to an earlier date) will be true and correct in all material respects, both
immediately before and after giving effect to such Letter of Credit, as
though such representations and warranties were made on and as of that date;
and

                  b. As to the Letter of Credit, OTHER THAN matters described in
SCHEDULE 4.10 to the Loan Agreement or required as of the Closing Date to be
therein described, there is no action, suit, proceeding or investigation pending
or threatened against or affecting Parent or any of its Subsidiaries or any
Property of any of them before any Governmental Agency that constitutes a
Material Adverse Effect.

         5. OTHER CONDITIONS. All other conditions to the issuance of the Letter
of Credit requested hereby set forth in Section 2.6 and ARTICLE 8 of the Loan
Agreement have been satisfied.

         6. ISSUANCE DATE. Except to the extent, if any, specified by notice
actually received by the Managing Agent prior to the issuance date specified
above, the foregoing representations and warranties shall be deemed to have been
made by the Borrowers on and as of such issuance date.

         7. DEFINITIONS. Terms defined in the Loan Agreement are used herein
with the meanings so defined.

                                      -2-

<PAGE>

         IN WITNESS WHEREOF, the undersigned have by their duly authorized
officers executed this request as of the__ day of _______, 200__.

                                   ALEXANDRIA REAL ESTATE EQUITIES, INC.

                                   By:      ___________________________
                                            Its:

                                   ALEXANDRIA REAL ESTATE EQUITIES, L.P.

                                   By:      ARE-QRS Corp., its general partner

                                            By:___________________________
                                                     Its:

                                   ARE-QRS CORP.

                                   By:___________________________
                                        Its:

                                   ARE ACQUISITIONS, LLC
                                   ARE-708 QUINCE ORCHARD, LLC
                                   ARE-940 CLOPPER ROAD, LLC
                                   ARE-1201 HARBOR BAY, LLC
                                   ARE-1401 RESEARCH BOULEVARD, LLC
                                   ARE-1500 EAST GUDE, LLC
                                   ARE-JOHN HOPKINS COURT, LLC

                                   By:      ARE-QRS Corp., their managing member

                                            By:___________________________
                                                     Its:

                                      -3-

<PAGE>

                                   ARE-4757 NEXUS CENTRE, LLC ARE-215
                                   COLLEGE ROAD, LLC ARE-819/863 MITTEN
                                   ROAD, LLC ARE-150/154 TECHNOLOGY
                                   PARKWAY, LLC ARE-8000/9000/10000
                                   VIRGINIA MANOR, LLC ARE-19
                                   FIRSTFIELD ROAD, LLC ARE-10150 OLD
                                   COLUMBIA, LLC ARE-11025 ROSELLE
                                   STREET, LLC ARE-170 WILLIAMS DRIVE,
                                   LLC ARE-3005 FIRST AVENUE, LLC
                                   ARE-15020 SHADY GROVE, LLC ARE-5
                                   TRIANGLE DRIVE, LLC ARE-50 WEST
                                   WATKINS MILL, LLC ARE-100 PHILLIPS
                                   PARKWAY, LLC ARE-279 PRINCETON ROAD,
                                   LLC ARE-2001 ALICEANNA STREET, LLC
                                   ARE-3770 TANSY STREET, LLC ARE-10505
                                   ROSELLE STREET, LLC
                                   ARE-9363/9373/9393 TOWN CENTRE, LLC
                                   ARE-2425/2400/2450 GARCIA BAYSHORE,
                                   LLC

                                   By:   Alexandria Real Estate Equities, L.P.,
                                         their sole member

                                         By:    ARE-QRS Corp., its general
                                                partner

                                                By:____________________________
                                                         Its:

                                   ARE-79/96 CHARLESTOWN NAVY YARD, LLC
                                   ARE-280 POND STREET, LLC
                                   ARE-60 WESTVIEW, LLC

                                   By:   AREE-Holdings, L.P., their managing
                                         member

                                         By:    ARE-GP Holdings QRS Corp., its
                                                general partner

                                                By:_________________________
                                                      Its:

                                      -4-

<PAGE>

                                ARE-5100/5110 CAMPUS DRIVE, L.P.
                                ARE-702 ELECTRONIC DRIVE, L.P.

                                By:   AREE-Holdings, L.P., their general partner

                                      By:    ARE-GP Holdings QRS Corp., its
                                             general partner

                                             By:_______________________
                                                      Its:

                                ARE-10933 NORTH TORREY PINES, LLC
                                ARE-11099 NORTH TORREY PINES, LLC

                                By:   Alexandria Real Estate Equities, Inc.,
                                      their sole member

                                      By:_________________________
                                               Its:

Address for all the foregoing:

Alexandria Real Estate Equities, Inc.
135 N. Los Robles Avenue, Suite 250
Pasadena, California 91101
Attn:  Joel S. Marcus, Chief Executive Officer
Telecopier:    (626) 578-0770
Telephone:     (626) 578-0777

                                      -5-

<PAGE>

                                  SCHEDULE 1.1

                              BANKS AND COMMITMENTS

<TABLE>
<CAPTION>

NAME AND ADDRESS                                  COMMITMENT                    PRO RATA SHARE
<S>                                               <C>                           <C>
BankBoston, N.A.                                  $55,000,000.00                16.9230769%
100 Federal Street
Boston, Massachusetts 02110
Attn:  Real Estate Division

Eurodollar Lending Office
         same as above

The Chase Manhattan Bank                          $35,000,000.00                10.7692308%
Chase Real Estate Finance
270 Park Avenue, 31st Floor
New York, New York 10017-2014
Attn:  Mr. John Mix

Eurodollar Lending Office
         same as above

First Union National Bank                         $35,000,000.00                10.7692308%
One First Union Center
TW-6 NC-0166
301 S.  College Street
Charlotte, NC 28288-0166
Attn:  Ms.  Cynthia A.  Bean

Eurodollar Lending Office
         same as above

Societe Generale, Southwest Agency                $35,000,000.00                10.7692308%
2001 Ross Avenue
Suite 4900
Dallas, Texas 75201
Attn:  Mr. Scott Gosslee

Eurodollar Lending Office
         same as above
</TABLE>

<PAGE>

<TABLE>

<S>                                               <C>                            <C>
Dresdner Bank AG, New York and Grand Cayman
 Branches                                         $32,000,000.00                 9.8461538%
333 South Grand Avenue. Suite 1700
Los Angeles, California  90071
Attn: Mr. John Cobus

Eurodollar Lending Office
         same as above

KeyBank National Association                      $25,000,000.00                 7.6923077%
127 Public Square
MCOH-01-27-0603
Cleveland, Ohio  44114
Attn: Mr. John Scott

Eurodollar Lending Office
         Same as above

Riggs Bank, N.A.                                  $15,000,000.00                 4.6153846%
Commercial Banking
808 17th Street, N.W., 7th Floor
Washington, D.C.  20006
Attn: Ms. Amanda Visser

Eurodollar Lending Office
         same as above

Chevy Chase Bank                                  $15,000,000.00                 4.6153846%
8401 Connecticut Avenue
Chevy Chase, Maryland 20815
Attn: Mr. Eric A.  Lawrence

Eurodollar Lending Office
         same as above

Citizens Bank of Massachusetts                    $15,000,000.00                 4.6153846%
One Citizens Plaza RC0440
Providence, Rhode Island 02903
Attn: Mr. Craig Schermerhorn

Eurodollar Lending Office
         same as above
</TABLE>

<PAGE>

<TABLE>

<S>                                               <C>                            <C>
Summit Bank                                       $15,000,000.00                 4.6153846%
Commerce Center
1800 Chapel Avenue West
Cherry Hills, New Jersey 08002
Attn: Ms. Kellie Anderson

Eurodollar Lending Office
         same as above

Crestar Bank                                      $15,000,000.00                 4.6153846%
8245 Boone Boulevard
Suite 820
Vienna, Virginia  22182
Attn: Mr. Gregory Horstman
Eurodollar Lending Office
         same as above

Sovereign Bank                                    $15,000,000.00                 4.6153846%
50 Rowes Wharf
Suite 430
Boston, Massachusetts  02110
Attn: Mr. Thomas W. Nadeau
Eurodollar Lending Office
         same as above

Manufacturers Bank                                $10,000,000.00                 3.0769231%
515 S.  Figueroa Street
Suite 1230
Los Angeles, CA 90071
Attn: Mr.  Dana Morken
Eurodollar Lending Office
         same as above
</TABLE>

<PAGE>

<TABLE>

<S>                                               <C>                            <C>
The Industrial Bank of Japan, Limited             $ 8,000,000.00                 2.4615385%
350 South Grand Avenue
Suite 1500
Los Angeles, California  90071
Attn:  Mr. Takeshi Kubo
Eurodollar Lending Office
         same as above

                                                  -------------                  ------------
                                                  $325,000,000.00                100.0%
</TABLE>

Percentages may not equal 100% due to rounding.

<PAGE>

                                  SCHEDULE 1.2

                  TEST DEBT SERVICE COVERAGE AMOUNT CALCULATION

EXAMPLE ONLY

      BORROWING BASE - DEBT SERVICE COVERAGE LIMIT:

<TABLE>
<CAPTION>

<S>                                                                                          <C>
Adjusted NOI from Unencumbered Asset Pool for most recent                                    $  47,944,000
      four quarters

Test Debt Service Coverage Amount:
         Total Unsecured Indebtedness                                                        $ 205,000,000
         Treasury Base Rate plus 2%                                                                  8.10%
         Test Debt Service Coverage Amount*                                                  $  19,149,929

         Coverage of Test Debt Service Coverage Amount                                                2.5x
</TABLE>

      * Test Debt Service Coverage amount based upon the Treasury rate + 2% on a
25 year amortization schedule

<PAGE>

                                                                 Schedule 4.4 to
                            Second Amended and Restated Revolving Loan Agreement

                                  SUBSIDIARIES
<TABLE>
<CAPTION>

<S>                                   <C>                      <C>             <C>            <C>           <C>
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ENTITY NAME                           PROPERTY OWNED           STATE OF        DATE FORMED    STATE(S)      OWNERS/INTERESTS
                                                               FORMATION                      QUALIFIED
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
Alexandria Real Estate Equities,      1102 & 1124 Columbia     MD              10/27/94       CA            publicly traded NYSE
Inc.                                  St., Seattle, WA                                        WA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
Alexandria Real Estate Equities,      None                     DE              12/10/97                     1% GP: ARE-QRS Corp.
L.P.                                                                                                        1% LP ARE-QRS Corp.
                                                                                                            98% LP: AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE Acquisitions, LLC                 1330 Piccard Dr.,        DE              12/20/96       MD            1% managing: ARE-QRS
Formerly PW Acquisitions I, LLC       Rockville, MD                                                         99% nonmanaging:
                                      1550 E. Gude Dr.,                                                     AREE
                                      Rockville, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
AREE-HOLDINGS, L.P.                   None                     DE              12/23/97                     1% GP: ARE-GP
                                                                                                            99% LP: ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
AREE-HOLDINGS II, L.P.                None                     DE              5/8/98                       1% GP: ARE-GP/II
                                                                                                            99% LP: ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-GP HOLDINGS QRS                   None                     DE              12/19/97                     100% AREE
CORP.
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-GP/II HOLDINGS QRS                None                     DE              5/8/98                       100% AREE
CORP.
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-GP/III HOLDINGS QRS               None                     DE              10/20/98                     100% AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                                   <C>                      <C>             <C>            <C>           <C>
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ENTITY NAME                           PROPERTY OWNED           STATE OF        DATE FORMED    STATE(S)      OWNERS/INTERESTS
                                                               FORMATION                      QUALIFIED
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-QRS Corp.                         25,35 & 45 W. Watkins    MD              9/9/96         CA            100% AREE
                                      Mill Rd.,                                               WA
                                      Gaithersburg, MD
                                      300 & 401 Professional
                                      Dr., Gaithersburg, MD
                                      1311&1401 Harbor Bay
                                      Parkway, Alameda, CA
                                      1413 Research Blvd.,
                                      Rockville, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-John Hopkins Court, LLC           3530 & 3550 John         DE              7/2/97         CA            1% managing: ARE-QRS
                                      Hopkins Court, San                                                    99% nonmanaging: AREE
                                      Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-Metropolitan Grove I, LLC         1201 Clopper Road,       DE              12/19/97       MD            100% ARE, LP
                                      Gaithersburg, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-Nexus Centre II, LLC              vacant parcel            DE              3/17/98        CA            100% ARE, LP
                                      adjoining 4757 Nexus
                                      Centre Dr., San Diego
                                      CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-One Innovation Drive, LLC         One Innovation Drive,    DE              9/3/98         MA            1% managing: HOLDINGS
                                      Worcester, MA (aka 3                                                  99% nonmanaging:
                                      Biotech)                                                              ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-Western Newbrook, LLC             3000 & 3018 Western,     DE              name changed   WA            1% managing:
                                      Seattle, WA                              5/11/98        VA            HOLDINGS II
(formerly known as ARE-3000/3018      14225 Newbrook Dr.,                                                   99% nonmanaging:
Western, LLC)                         Chantilly, VA                                                         ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-Five Biotech, LLC                 381 Plantation Street,   DE              9/3/98         MA            1% managing: HOLDINGS
                                      Worcester, MA                                                         99% nonmanaging:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-5 Triangle Drive, LLC             5 Triangle Drive,        DE              7/9/98         NC            100% ARE, LP
                                      Research Triangle
                                      Park, NC
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-19 Firstfield Road, LLC           19 Firstfield Road       DE              4/20/98        MD            100% ARE, LP
                                      Gaithersburg, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                                   <C>                      <C>             <C>            <C>           <C>
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ENTITY NAME                           PROPERTY OWNED           STATE OF        DATE FORMED    STATE(S)      OWNERS/INTERESTS
                                                               FORMATION                      QUALIFIED
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-50 West Watkins Mill, LLC         50 West Watkins Mill     DE              8/27/98        MD            100% ARE, LP
                                      Road, Gaithersburg, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-60 Westview, LLC                  60 Westview Street,      DE              8/11/98        MA            1% managing:
                                      Lexington, MA                                                         HOLDINGS, LP
                                                                                                            99% nonmanaging:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-79/96 Charlestown Navy Yard, LLC  Building 79              DE              12/31/97       MA            1% managing:
                                      Building 96                                                           HOLDINGS, LP
                                      Charlestown Navy Yard,                                                99% nonmanaging:
                                      Charlestown, MA                                                       ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-100 Phillips Parkway, LLC         100 Phillips Parkway,    DE              9/23/98        NJ            100% ARE, LP
                                      Montvale, NJ
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-100/800/801 Capitola, LLC         100, 800 & 801           DE              12/16/97       NC            100% ARE, LP
                                      Capitola Drive,
                                      Durham, NC
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-104 Alexander Road, LLC           104 Alexander,           DE              5/5/98         NC            100% ARE, LP
                                      Research Triangle
                                      Park, NC
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-129/153/161 Hill Street, LLC      129/153/161 North Hill   DE              11/23/99       CA            100% ARE, LP
                                      Street, Pasadena CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-150/154 Technology Parkway, LLC   150 & 154 Technology     DE              4/15/98        GA            100% ARE, LP
                                      Parkway, Norcross, GA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-170 Williams Drive, LLC           170 Williams Drive       DE              5/18/98        NJ            100% ARE, LP
                                      Ramsey, NJ
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-215 College Road, LLC             215 College Road,        DE              12/19/97       NJ            100% ARE, LP
                                      Paramus, NJ
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-279 Princeton Road, LLC           279 Princeton Road,      DE              8/27/98        NJ            100% ARE, LP
                                      Princeton, NJ
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-280 Pond Street, LLC              280 Pond Street          DE              4/13/98        MA            1% managing: HOLDINGS
                                      Randolph, MA                                                          99% nonmanaging:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                                   <C>                      <C>             <C>            <C>           <C>
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ENTITY NAME                           PROPERTY OWNED           STATE OF        DATE FORMED    STATE(S)      OWNERS/INTERESTS
                                                               FORMATION                      QUALIFIED
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-377 Plantation Street, LLC        377 Plantation Street,   DE              9/3/98         MA            1% managing: HOLDINGS
                                      Worcester, MA                                                         99% nonmanaging:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-620 Memorial Drive, LLC           620 Memorial Drive,      DE              10/23/98       MA            1% managing: HOLDINGS
                                      Cambridge, MA                                                         99% nonmanaging:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-702 Electronic Drive, L.P.        702 Electronic Drive     DE              3/24/98        PA            1% general partner:
                                      Horsham, PA                                                           HOLDINGS
                                                                                                            99% limited partner:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-708 Quince Orchard, LLC           708 Quince Orchard       DE              8/14/97        MD            1% managing: ARE-QRS
                                      Road, Gaithersburg, MD                                                99% nonmanaging:
                                                                                                            AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-819/863 Mitten Road, LLC          819-863 Mitten Road,     DE              12/19/97       CA            100% ARE, LP
                                      Burlingame, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-940 Clopper Road, LLC             940 Clopper Road,        DE              8/20/97        MD            1% managing: ARE-QRS
                                      Gaithersburg, MD                                                      99% nonmanaging:
                                                                                                            AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-1201 Harbor Bay, LLC              1201 Harbor Bay          DE              11/17/97       CA            1% managing: ARE-QRS
                                      Parkway, Alameda, CA                                                  99% nonmanaging:
                                                                                                            AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-1201 Clopper Loan, LLC            1201 Clopper Road,       DE              9/17/99        MD            100%
                                      Gaithersburg, MD                                                      ARE-METROPOLITAN
                                                                                                            GROVE I, LLC
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-1401 Research Boulevard, LLC      1401 Research Blvd.,     DE              8/28/97        MD            1% managing: ARE-QRS
                                      Gaithersburg, MD                                                      99% nonmanaging:
                                                                                                            AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                                   <C>                      <C>             <C>            <C>           <C>
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ENTITY NAME                           PROPERTY OWNED           STATE OF        DATE FORMED    STATE(S)      OWNERS/INTERESTS
                                                               FORMATION                      QUALIFIED
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-1431 Harbor Bay, LLC              1431 Harbor Bay          DE              5/20/97        CA            1% managing: ARE-QRS
                                      Parkway, Alameda, CA                                                  99% nonmanaging: AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-1500 East Gude, LLC               1500 East Gude Dr.,      DE              11/5/97        MD            1% managing: ARE-QRS
                                      3 Taft Ct., & 32 Taft                                                 99% nonmanaging:
                                      Ct., Rockville, MD                                                    AREE
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-2001 Aliceanna Street, LLC        1935/2001/2023-2039      DE              6/30/98        MD            100% ARE, LP
                                      Aliceanna Street,
                                      Baltimore, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-2425/2400/2450 Garcia Bayshore,   2425 Garcia Avenue &     DE              7/27/99        CA            100% ARE, LP
LLC                                   2400/2450 Bayshore
                                      Parkway, Mountain
                                      View, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-2625/2627/2631 Hanover, LLC       2625/2627/2631 Hanover   DE              3/23/99        CA            100% ARE, LP
                                      Street, Palo Alto, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-9363/9373/9393 Towne Centre, LLC  9363/9373/9393 Towne     DE              8/18/99        CA            100% ARE, LP
                                      Centre Drive, Mountain
                                      View, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-3005 First Avenue, LLC            3005 1st Avenue,         DE              5/8/98         WA            100% ARE, LP
                                      Seattle, WA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-3535/3565 General Atomics         3535 & 3565 General      DE              12/19/97       CA            100% AREE
Court, LLC                            Atomics Ct., San
                                      Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-3770 Tansy Street, LLC            3770 Tansy Street, San   DE              8/11/98        CA            100% ARE, LP
                                      Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-4757 Nexus Centre, LLC            4757 Nexus Centre Dr.,   DE              3/13/98        CA            100% ARE, LP
                                      San Diego CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-5100/5110 Campus Drive, L.P.      5100 & 5110 Campus       DE              3/24/98        PA            1% general partner:
                                      Dr., Philadelphia, PA                                                 HOLDINGS
                                                                                                            99% limited partner:
                                                                                                            ARE, LP
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-6166 Nancy Ridge, LLC             6166 Nancy Ridge Dr.,    DE              3/20/98        CA            100% ARE, LP
                                      San Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

<S>                                   <C>                      <C>             <C>            <C>           <C>
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ENTITY NAME                           PROPERTY OWNED           STATE OF        DATE FORMED    STATE(S)      OWNERS/INTERESTS
                                                               FORMATION                      QUALIFIED
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-8000/9000/10000 Virginia Manor,   8000, 9000, 10000        DE              12/31/97       MD            100% ARE, LP
LLC                                   Virginia Manor Road,
                                      Beltsville, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-10150 Old Columbia, LLC           10150 Old Columbia       DE              12/19/97       MD            100% ARE, LP
                                      Road, Columbia,
                                      Maryland
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-10505 Roselle Street, LLC         10505 Roselle Street,    DE              7/27/98        CA            100% ARE, LP
                                      San Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-10933 North Torrey Pines, LLC     10933 N. Torrey Pines    DE              12/19/97       CA            100% AREE
                                      Rd., San Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-11025 Roselle Street, LLC         11025 Roselle Street,    DE              12/2/97        CA            100% ARE, LP
                                      San Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-11099 North Torrey Pines, LLC     11099 N. Torrey Pines    DE              12/19/97       CA            100% AREE
                                      Rd., San Diego, CA
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
ARE-15020 Shady Grove, LLC            15020 Shady Grove,       DE              6/5/98         MD            100% ARE, LP
                                      Rockville, MD
------------------------------------- ------------------------ --------------- -------------- ------------- ----------------------
</TABLE>

<PAGE>

                                                                 Schedule 4.7 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

              EXISTING LIENS, NEGATIVE PLEDGES AND RIGHTS OF OTHERS

As of the Closing Date, the Borrowers will have outstanding mortgage
indebtedness as follows:

<TABLE>
<CAPTION>

NAME OF PROPERTY                                                   MATURITY DATE OF LOAN
----------------                                                   ---------------------
<S>                                                                <C>
3535/3565 General Atomics Court
San Diego, CA                                                      December 2014

1102/1124 Columbia Street
Seattle, WA                                                        May 2016

100/800/801 Capitola Drive
Durham, NC                                                         December 2006

1431 Harbor Bay Parkway
Alameda, CA                                                        January 2016

14225 Newbrook Drive, Chantilly VA &
3000/3018 Western Newbrook, Seattle WA                             May 2008

620 Memorial Drive
Cambridge, MA                                                      October 2007

One Innovation Drive
Worcester, MA                                                      January 2006

377 Plantation Street, Worcester MA &
6166 Nancy Ridge, San Diego CA                                     January 2010

381 Plantation Street
Worcester, MA                                                      June 2000

1201 Clopper Road
Gaithersburg, MD                                                   October 2001
</TABLE>

<PAGE>

                                                                 Schedule 4.7 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

              EXISTING LIENS, NEGATIVE PLEDGES AND RIGHTS OF OTHERS

As of the Closing Date, the following properties are on ground leases:

<TABLE>
<CAPTION>

NAME OF PROPERTY                                              TERM OF LEASE
----------------                                              -------------
<S>                                                           <C>
Buildings 79 and 96 Charlestown Navy Yard
Charlestown, Massachusetts                                    September 2053/May 2055

8000/9000/10000 Virginia Manor Road
Beltsville, Maryland                                          July 2047

2425 Garcia Avenue & 2400/2450
Bayshore Parkway
Mountain View, California                                     September 2053
</TABLE>

<PAGE>

                                                                Schedule 4.10 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                               MATERIAL LITIGATION

                                      None.

<PAGE>

                                                                Schedule 4.17 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                               HAZARDOUS MATERIALS

                                      None.

<PAGE>

                                                                Schedule 4.18 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                             INITIAL POOL PROPERTIES

The properties at the addresses set forth below are the Qualified Unencumbered
Asset Pool Properties comprising the initial Unencumbered Asset Pool:

<TABLE>
<CAPTION>
      <S>                                                          <C>
      1.       10933 North Torrey Pines Road                       San Diego, California
      2.       11099 North Torrey Pines Road                       San Diego, California
      3.       11025 Roselle Street                                San Diego, California
      4.       4757 Nexus Center Drive                             San Diego, California
      5.       10505 Roselle Street                                San Diego, California
      6.       3770 Tansy Street                                   San Diego, California
      7.       3530 John Hopkins Court                             San Diego, California
      8.       3550 John Hopkins Court                             San Diego, California
      9.       9363 Towne Centre Drive                             San Diego, California
      10.      9373 Towne Centre Drive                             San Diego, California
      11.      9393 Towne Centre Drive                             San Diego, California
      12.      1311 Harbor Bay Parkway                             Alameda, California
      13.      1401 Harbor Bay Parkway                             Alameda, California
      14.      1201 Harbor Bay Parkway                             Alameda, California
      15.      819-849 Mitten Road                                 Burlingame, California
      16.      863 Mitten Road/866 Malcolm Road                    Burlingame, California
      17.      2425 Garcia 2400/2450 Bayshore                      Mountain View, California
      18.      150/154 Technology Parkway                          Norcross, Georgia
      19.      2001 Aliceanna Street                               Baltimore, Maryland
      20.      8000/9000/10000 Virginia Manor Road                 Beltsville, Maryland
      21.      10150 Old Columbia Road                             Columbia, Maryland
      22.      300 Professional Drive                              Gaithersburg, Maryland
      23.      401 Professional Drive                              Gaithersburg, Maryland
      24.      25/35/45 West Watkins Mill Road                     Gaithersburg, Maryland
      25.      708 Quince Orchard Road                             Gaithersburg, Maryland
      26.      940 Clopper Road                                    Gaithersburg, Maryland
      27.      19 Firstfield Road                                  Gaithersburg, Maryland
      28.      15020 Shady Grove Road                              Gaithersburg, Maryland
      29.      50 W. Watkins Mill Road                             Gaithersburg, Maryland
      30.      1330 Piccard Drive                                  Rockville, Maryland
      31.      1401 Research Boulevard                             Rockville, Maryland
      32.      1413 Research Boulevard                             Rockville, Maryland
      33.      1500 East Gude Drive                                Rockville, Maryland
      34.      1550 East Gude Drive                                Rockville, Maryland
      35.      Buildings 79 and 96 Charlestown Navy Yard           Charlestown, Massachusetts
      36.      60 Westview Street                                  Lexington, Massachusetts
      37.      280 Pond Street                                     Randolph, Massachusetts
      38.      100 Phillips Parkway                                Montvale, New Jersey
      39.      215 College Road                                    Paramus, New Jersey
      40.      5100/5110 Campus Drive                              Philadelphia, Pennsylvania
      41.      279 Princeton Parkway                               Princeton, New Jersey
      42.      170 Williams Drive                                  Ramsey, New Jersey
      43.      5 Triangle Drive                                    Research Triangle Park, North Carolina
      44.      702 Electronic Drive                                Horsham, Pennsylvania
      45.      3005 First Avenue                                   Seattle, Washington
</TABLE>

<PAGE>

                                                                Schedule 4.19 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                                  REAL PROPERTY

After the Closing Date, the properties owned by the Borrowers and their
Subsidiaries are as follows:

<TABLE>
<CAPTION>

      <S>                                                          <C>
      1.       10933 North Torrey Pines Road                       San Diego, California
      2.       3010 Science Park Road                              San Diego, California
      3.       11099 North Torrey Pines Road                       San Diego, California
      4.       3535 General Atomics Court                          San Diego, California
      5.       3565 General Atomics Court                          San Diego, California
      6.       11025 Roselle Street                                San Diego, California
      7.       4757 Nexus Center Drive                             San Diego, California
      8.       6166 Nancy Ridge Drive                              San Diego, California
      9.       10505 Roselle Street                                San Diego, California
      10.      3770 Tansy Street                                   San Diego, California
      11.      3530 John Hopkins Court                             San Diego, California
      12.      3550 John Hopkins Court                             San Diego, California
      13.      9363 Towne Centre Drive                             San Diego, California
      14.      9373 Towne Centre Drive                             San Diego, California
      15.      9393 Towne Centre Drive                             San Diego, California
      16.      129/153/161 North Hill Street                       Pasadena, California
      17.      1311 Harbor Bay Parkway                             Alameda, California
      18.      1401 Harbor Bay Parkway                             Alameda, California
      19.      1431 Harbor Bay Parkway                             Alameda, California
      20.      1201 Harbor Bay Parkway                             Alameda, California
      21.      819-849 Mitten Road                                 Burlingame, California
      22.      863 Mitten Road/866 Malcolm Road                    Burlingame, California
      23.      2625/2627/2631 Hanover Street                       Palo Alto, California
      24.      2425 Garcia 2400/2450 Bayshore                      Mountain View, California
      25.      150/154 Technology Parkway                          Norcross, Georgia
      26       2001 Aliceanna Street                               Baltimore, Maryland
      27.      8000/9000/10000 Virginia Manor Road                 Beltsville, Maryland
      28.      10150 Old Columbia Road                             Columbia, Maryland
      29.      300 Professional Drive                              Gaithersburg, Maryland
      30.      401 Professional Drive                              Gaithersburg, Maryland
      31.      25/35/45 West Watkins Mill Road                     Gaithersburg, Maryland
      32.      708 Quince Orchard Road                             Gaithersburg, Maryland
      33.      940 Clopper Road                                    Gaithersburg, Maryland
      34.      1201 Clopper Road                                   Gaithersburg, Maryland
      35.      19 Firstfield Road                                  Gaithersburg, Maryland
      36.      15020 Shady Grove Road                              Gaithersburg, Maryland
      37.      50 W. Watkins Mill Road                             Gaithersburg, Maryland
      38.      1330 Piccard Drive                                  Rockville, Maryland
      39.      1401 Research Boulevard                             Rockville, Maryland
      40.      1413 Research Boulevard                             Rockville, Maryland
      41.      1500 East Gude Drive                                Rockville, Maryland
      42.      1550 East Gude Drive                                Rockville, Maryland
      43.      620 Memorial Drive                                  Cambridge, Massachusetts
      44.      Buildings 79 and 96 Charlestown Navy Yard           Charlestown, Massachusetts
      45.      60 Westview Street                                  Lexington, Massachusetts
      46.      280 Pond Street                                     Randolph, Massachusetts
      47.      377 Plantation Street                               Worcestor, Massachusetts
      48.      One Innovation Drive                                Worcestor, Massachusetts
      49.      381 Plantation Street                               Worcestor, Massachusetts
      50.      100 Phillips Parkway                                Montvale, New Jersey
      51.      215 College Road                                    Paramus, New Jersey
</TABLE>

<PAGE>

<TABLE>
      <S>                                                          <C>
      52.      5100/5110 Campus Drive                              Philadelphia, Pennsylvania
      53.      279 Princeton Parkway                               Princeton, New Jersey
      54.      170 Williams Drive                                  Ramsey, New Jersey
      55.      100 Capitola Drive                                  Durham, North Carolina
      56.      800/801 Capitola Drive                              Durham, North Carolina
      57.      5 Triangle Drive                                    Research Triangle Park, North Carolina
      58.      702 Electronic Drive                                Horsham, Pennsylvania
      59.      14225 Newbrook Drive                                Chantilly, Virginia
      60.      1102/1124 Columbia Street                           Seattle, Washington
      61.      3000/3018 Western Avenue                            Seattle, Washington
      62.      3005 First Avenue                                   Seattle, Washington
</TABLE>

After the Closing Date, the parcels of land owned by the Borrowers and their
Subsidiaries are as follows:

<TABLE>
<CAPTION>

      <S>                                                          <C>
      1.       4757 Nexus Centre Drive II                          San Diego, California
      2.       Capitola Land                                       Durham, North Carolina
      3.       104 Alexander Road                                  Research Triangle Park, North Carolina
</TABLE>

<PAGE>

                                                                Schedule 4.21 to
                            SECOND AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                                  INDEBTEDNESS

After the Closing Date, the Borrowers and their Subsidiaries will have
outstanding indebtedness as described in Sections 6.11 and 6.12 as follows:

<TABLE>
<CAPTION>

                                                                                            Amount Outstanding
LENDER                                       PROPERTY SECURED                             AS OF DECEMBER 31, 1999
-------------------------------              ----------------------------                 -----------------------
<S>                                          <C>                                          <C>
Aid Association for Lutherans                3535/3565 General Atomics Court                    $ 17,063,000

Aid Association for Lutherans                1102/1124 Columbia Street                          $ 20,148,000

United States Trust Company of               1431 Harbor Bay Parkway                            $ 7,145,000
 New York

LaSalle National Bank                        100/800/801 Capitola Drive                         $ 12,436,000

State Street Bank and Trust                  14225 Newbrook Drive &                             $ 35,995,000
                                             3000/3018 Western Avenue

LaSalle National Bank                        620 Memorial Drive                                 $ 17,780,000

Teachers Insurance and Annuity               One Innovation Drive                               $ 10,995,000
 Association of America

Credit Suisse First Boston                   377 Plantation Street &                            $ 18,900,000
 Mortgage Capital LLC                        6166 Nancy Ridge Road

Worcester Business Development               381 Plantation Street                              $  2,625,000
 Corporation                                 (Development project)

Keybank National Association                 1201 Clopper Road                                  $ 12,638,000
                                             (Development project)
</TABLE><PAGE>

                                                                    EXHIBIT 10.4

                          1998 STOCK INCENTIVE PLAN OF

                          NETLOJIX COMMUNICATIONS, INC.
                        (AS AMENDED ON JANUARY 10, 2000)

ARTICLE 1.                          INTRODUCTION

         The Plan was adopted by the Board on March 10, 1998, subject to
approval by the Company's stockholders. The purpose of the Plan is to promote
the long-term success of the Company and the creation of stockholder value by
(a) encouraging Employees, Outside Directors and Consultants to focus on
critical long-range objectives, (b) encouraging the attraction and retention of
Employees, Outside Directors and Consultants with exceptional qualifications and
(c) linking Employees, Outside Directors and Consultants directly to stockholder
interests through increased stock ownership. The Plan seeks to achieve this
purpose by providing for Awards in the form of Restricted Shares, Stock Units,
Options (which may constitute incentive stock options or nonstatutory stock
options) or stock appreciation rights.

         The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware (except their choice-of-law provisions).

ARTICLE 2.                     ADMINISTRATION

         2.1 Committee Composition. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of two or more directors of
the Company, who shall be appointed by the Board. In addition, the composition
of the Committee shall satisfy:

                  (a) Such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act; and

                  (b) Such requirements as the Internal Revenue Service may
establish for outside directors acting under plans intended to qualify for
exemption under section 162(m)(4)(C) of the Code.

         The Board may also appoint one or more separate committees of the
Board, each composed of one or more directors of the Company who need not
satisfy the foregoing requirements, who may administer the Plan with respect to
Employees and Consultants who are not considered officers or directors of the
Company under section 16 of the Exchange Act, may grant Awards under the Plan to
such Employees and Consultants and may determine all terms of such Awards.

                                      E-5
<PAGE>

         2.2 COMMITTEE RESPONSIBILITIES. The Committee shall (a) select the
Employees, Outside Directors and Consultants who are to receive Awards under the
Plan, (b) determine the type, number, vesting requirements and other features
and conditions of such Awards, (c) interpret the Plan and (d) make all other
decisions relating to the operation of the Plan. The Committee may adopt such
rules or guidelines as it deems appropriate to implement the Plan. The
Committee's determinations under the Plan shall be final and binding on all
persons.

ARTICLE 3.          SHARES AVAILABLE FOR GRANTS.

         3.1 BASIC LIMITATION. Common Shares issued pursuant to the Plan may be
authorized but unissued shares or treasury shares. The aggregate number of
Restricted Shares, Stock Units, Options and SARs awarded under the Plan shall
not exceed 3,000,000. The limitation of this Section 3.1 shall be subject to
adjustment pursuant to Article 10.

         3.2 ADDITIONAL SHARES. If Stock Units, Options or SARs are forfeited
or if Options or SARs terminate for any other reason before being exercised,
then the corresponding Common Shares shall again become available for Awards
under the Plan. If Stock Units are settled, then only the number of Common
Shares (if any) actually issued in settlement of such Stock Units shall reduce
the number available under Section 3.1 and the balance shall again become
available for Awards under the Plan. If SARs are exercised, then only the number
of Common Shares (if any) actually issued in settlement of such SARs shall
reduce the number available under Section 3.1 and the balance shall again become
available for Awards under the Plan. If Restricted Shares are forfeited, then
such Shares shall not become available for subsequent Awards under the Plan.

         3.3 DIVIDEND EQUIVALENTS. Any dividend equivalents distributed under
the Plan shall not be applied against the number of Restricted Shares, Stock
Units, Options or SARs available for Awards, whether or not such dividend
equivalents are converted into Stock Units.

ARTICLE 4.                     ELIGIBILITY

         4.1 GENERAL RULES. Only Employees, Outside Directors and Consultants
shall be eligible for designation as Participants by the Committee.

         4.2 INCENTIVE STOCK OPTIONS. Only Employees shall be eligible for the
grant of ISOs. In addition, an Employee who owns more than 10% of the total
combined voting power of all classes of outstanding stock of the Company or any
of its Parents or Subsidiaries shall not be eligible for the grant of an ISO
unless the requirements set forth in section 422(c)(6) of the Code are
satisfied.

                                      E-6
<PAGE>

ARTICLE 5.                     OPTIONS

         5.1 STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The
Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical. Options may be granted in consideration of a cash payment
or in consideration of a reduction in the Optionee's other compensation.

         5.2 NUMBER OF SHARES. Each Stock Option Agreement shall specify the
number of Common Shares subject to the Option and shall provide for the
adjustment of such number in accordance with Article 10. Options granted to any
Optionee in a single calendar year shall in no event cover more than 500,000
Common Shares, subject to adjustment in accordance with Article 10.

         5.3 EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price under an ISO shall in no event
be less than 100% of the Fair Market Value of a Common Share on the date of
grant and the Exercise Price under an NSO shall in no event be less than the par
value of the Common Shares subject to such NSO. In the case of an NSO, a Stock
Option Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the NSO is outstanding.

         5.4 EXERCISABILITY AND TERM. Each Stock Option Agreement shall specify
the date when all or any installment of the Option is to become exercisable. The
Stock Option Agreement shall also specify the term of the Option; provided that
the term of an ISO shall in no event exceed 10 years from the date of grant. A
Stock Option Agreement may provide for accelerated exercisability in the event
of the Optionee's death, disability or retirement or other events and may
provide for expiration prior to the end of its term in the event of the
termination of the Optionee's service. Options may be awarded in combination
with SARs, and such an Award may provide that the Options will not be
exercisable unless the related SARs are forfeited. NSOs may also be awarded in
combination with Restricted Shares or Stock Units, and such an Award may provide
that the NSOs will not be exercisable unless the related Restricted Shares or
Stock Units are forfeited.

         5.5 EFFECT OF CHANGE IN CONTROL. The Committee may determine, at the
time of granting an Option or thereafter, that such Option shall become fully
exercisable as to all Common Shares subject to such Option in the event that a
Change in Control occurs with respect to the Company.

         5.6 MODIFICATION OR ASSUMPTION OF OPTIONS.. Within the limitations of
the Plan, the Committee may modify, extend or assume outstanding options or may
accept the cancellation of outstanding options (whether granted by the Company
or by another issuer) in return for the grant of new options for the same or a
different number of shares and at the same or a different

                                      E-7
<PAGE>

exercise price. The foregoing notwithstanding, no modification of an Option
shall, without the consent of the Optionee, alter or impair his or her rights or
obligations under such Option.

ARTICLE 6.                     PAYMENT FOR OPTION SHARES

         6.1 GENERAL RULE. The entire Exercise Price of Common Shares issued
upon exercise of Options shall be payable in cash at the time when such Common
Shares are purchased, except as follows:

                  (a) In the case of an ISO granted under the Plan, payment
shall be made only pursuant to the express provisions of the applicable Stock
Option Agreement. The Stock Option Agreement may specify that payment may be
made in any form(s) described in this Article 6.

                  (b) In the case of an NSO, the Committee may at any time
accept payment in any form(s) described in this Article 6.

         6.2 EXERCISE/SALE. To the extent that this Section 6.2 is applicable,
payment may be made by the delivery (on a form prescribed by the Company) of an
irrevocable direction to a securities broker approved by the Company to sell
Common Shares and to deliver all or part of the sales proceeds to the Company in
payment of all or part of the Exercise Price and any withholding taxes.

         6.3 EXERCISE/PLEDGE. To the extent that this Section 6.3 is
applicable, payment may be made by the delivery (on a form prescribed by the
Company) of an irrevocable direction to pledge Common Shares to a securities
broker or lender approved by the Company, as security for a loan, and to deliver
all or part of the loan proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

         6.4 PROMISSORY NOTE. To the extent that this Section 6.4 is
applicable, payment may be made with a full-recourse promissory note; provided
that the par value of the Common Shares shall be paid in cash.

         6.5 OTHER FORMS OF PAYMENT. To the extent that this Section 6.5 is
applicable, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

ARTICLE 7.                     STOCK APPRECIATION RIGHTS

         7.1 SAR AGREEMENT. Each grant of an SAR under the Plan shall be
evidenced by an SAR Agreement between the Optionee and the Company. Such SAR
shall be subject to all applicable terms of the Plan and may be subject to any
other terms that are not inconsistent with the Plan. The provisions of the
various SAR Agreements entered into under the Plan need not be identical. SARs
may be granted in consideration of a reduction in the Optionee's other
compensation.

                                      E-8
<PAGE>

         7.2 NUMBER OF SHARES. Each SAR Agreement shall specify the number of
Common Shares to which the SAR pertains and shall provide for the adjustment of
such number in accordance with Article 10. SARs granted to any Optionee in a
single calendar year shall in no event pertain to more than 500,000 Common
Shares, subject to adjustment in accordance with Article 10.

         7.3 EXERCISE PRICE. Each SAR Agreement shall specify the Exercise
Price. An SAR Agreement may specify an Exercise Price that varies in accordance
with a predetermined formula while the SAR is outstanding.

         7.4 EXERCISABILITY AND TERM. Each SAR Agreement shall specify the date
when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. An SAR Agreement may provide
for accelerated exercisability in the event of the Optionee's death, disability
or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionee's service. SARs may
also be awarded in combination with Options, Restricted Shares or Stock Units,
and such an Award may provide that the SARs will not be exercisable unless the
related Options, Restricted Shares or Stock Units are forfeited. An SAR may be
included in an ISO only at the time of grant but may be included in an NSO at
the time of grant or thereafter. An SAR granted under the Plan may provide that
it will be exercisable only in the event of a Change in Control.

         7.5 EFFECT OF CHANGE IN CONTROL. The Committee may determine, at the
time of granting an SAR or thereafter, that such SAR shall become fully
exercisable as to all Common Shares subject to such SAR in the event that a
Change in Control occurs with respect to the Company.

         7.6 EXERCISE OF SARS. If, on the date when an SAR expires, the
Exercise Price under such SAR is less than the Fair Market Value on such date
but any portion of such SAR has not been exercised or surrendered, then such SAR
shall automatically be deemed to be exercised as of such date with respect to
such portion. Upon exercise of an SAR, the Optionee (or any person having the
right to exercise the SAR after his or her death) shall receive from the Company
(a) Common Shares, (b) cash or (c) a combination of Common Shares and cash, as
the Committee shall determine. The amount of cash and/or the Fair Market Value
of Common Shares received upon exercise of SARs shall, in the aggregate, be
equal to the amount by which the Fair Market Value (on the date of surrender) of
the Common Shares subject to the SARs exceeds the Exercise Price.

         7.7 MODIFICATION OR ASSUMPTION OF SARS. Within the limitations of the
Plan, the Committee may modify, extend or assume outstanding SARs or may accept
the cancellation of outstanding SARs (whether granted by the Company or by
another issuer) in return for the grant of new SARs for the same or a different
number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of an SAR shall, without the consent of the
Optionee, alter or impair his or her rights or obligations under such SAR.

                                      E-9
<PAGE>

ARTICLE 8.                     RESTRICTED SHARES AND STOCK UNITS.

         8.1 TIME, AMOUNT AND FORM OF AWARDS. Awards under the Plan may be
granted in the form of Restricted Shares, in the form of Stock Units, or in any
combination of both. Restricted Shares or Stock Units may also be awarded in
combination with NSOs or SARs, and such an Award may provide that the Restricted
Shares or Stock Units will be forfeited in the event that the related NSOs or
SARs are exercised.

         8.2 PAYMENT FOR AWARDS. To the extent that an Award is granted in the
form of newly issued Restricted Shares, the Award recipient, as a condition to
the grant of such Award, shall be required to pay the Company in cash an amount
equal to the par value of such Restricted Shares. To the extent that an Award is
granted in the form of Restricted Shares from the Company's treasury or in the
form of Stock Units, no cash consideration shall be required of the Award
recipients.

         8.3 VESTING CONDITIONS. Each Award of Restricted Shares or Stock Units
shall become vested, in full or in installments, upon satisfaction of the
conditions specified in the Stock Award Agreement. A Stock Award Agreement may
provide for accelerated vesting in the event of the Participant's death,
disability or retirement or other events. The Committee may determine, at the
time of making an Award or thereafter, that such Award shall become fully vested
in the event that a Change in Control occurs with respect to the Company.

         8.4 FORM AND TIME OF SETTLEMENT OF STOCK UNITS. Settlement of vested
Stock Units may be made in the form of (a) cash, (b) Common Shares or (c) any
combination of both, as determined by the Committee. The actual number of Stock
Units eligible for settlement may be larger or smaller than the number included
in the original Award, based on predetermined performance factors. Methods of
converting Stock Units into cash may include (without limitation) a method based
on the average Fair Market Value of Common Shares over a series of trading days.
Vested Stock Units may be settled in a lump sum or in installments. The
distribution may occur or commence when all vesting conditions applicable to the
Stock Units have been satisfied or have lapsed, or it may be deferred to any
later date. The amount of a deferred distribution may be increased by an
interest factor or by dividend equivalents. Until an Award of Stock Units is
settled, the number of such Stock Units shall be subject to adjustment pursuant
to Article 10.

         8.5 DEATH OF RECIPIENT. Any Stock Units Award that becomes payable
after the recipient's death shall be distributed to the recipient's beneficiary
or beneficiaries. Each recipient of a Stock Units Award under the Plan shall
designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient's death.
If no beneficiary was designated or if no designated beneficiary survives the
Award recipient, then any Stock Units Award that becomes payable after the
recipient's death shall be distributed to the recipient's estate.

                                      E-10
<PAGE>

         8.6 CREDITORS' RIGHTS. A holder of Stock Units shall have no rights
other than those of a general creditor of the Company. Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Stock Award Agreement.

ARTICLE 9.                     VOTING AND DIVIDEND RIGHTS

         9.1 RESTRICTED SHARES. The holders of Restricted Shares awarded under
the Plan shall have the same voting, dividend and other rights as the Company's
other stockholders. A Stock Award Agreement, however, may require that the
holders of Restricted Shares invest any cash dividends received in additional
Restricted Shares. Such additional Restricted Shares shall be subject to the
same conditions and restrictions as the Award with respect to which the
dividends were paid. Such additional Restricted Shares shall not reduce the
number of Common Shares available under Article 3.

         9.2 STOCK UNITS. The holders of Stock Units shall have no voting
rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan
may, at the Committee's discretion, carry with it a right to dividend
equivalents. Such right entitles the holder to be credited with an amount equal
to all cash dividends paid on one Common Share while the Stock Unit is
outstanding. Dividend equivalents may be converted into additional Stock Units.
Settlement of dividend equivalents may be made in the form of cash, in the form
of Common Shares, or in a combination of both. Prior to distribution, any
dividend equivalents which are not paid shall be subject to the same conditions
and restrictions as the Stock Units to which they attach.

ARTICLE 10.                    PROTECTION AGAINST DILUTION.

         10.1 ADJUSTMENTS. In the event of a subdivision of the outstanding
Common Shares, a declaration of a dividend payable in Common Shares, a
declaration of a dividend payable in a form other than Common Shares in an
amount that has a material effect on the price of Common Shares, a combination
or consolidation of the outstanding Common Shares (by reclassification or
otherwise) into a lesser number of Common Shares, a recapitalization, a spin-off
or a similar occurrence, the Committee shall make such adjustments as it, in its
sole discretion, deems appropriate in one or more of (a) the number of Options,
SARs, Restricted Shares and Stock Units available for future Awards under
Article 3, (b) the limitations set forth in Section 3.1 (c) the number of Stock
Units included in any prior Award which has not yet been settled, (d) the number
of Common Shares covered by each outstanding Option and SAR or (e) the Exercise
Price under each outstanding Option and SAR. Except as provided in this Article
10, a Participant shall have no rights by reason of any issue by the Company of
stock of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of any
stock dividend or any other increase or decrease in the number of shares of
stock of any class.

                                      E-11
<PAGE>

         10.2 REORGANIZATIONS. In the event that the Company is a party to a
merger or other reorganization, outstanding Options, SARs, Restricted Shares and
Stock Units shall be subject to the agreement of merger or reorganization. Such
agreement may provide, without limitation, for the assumption of outstanding
Awards by the surviving corporation or its parent, for their continuation by the
Company (if the Company is a surviving corporation), for accelerated vesting and
accelerated expiration, or for settlement in cash.

ARTICLE 11.                    AWARDS UNDER OTHER PLANS

         The Company may grant awards under other plans or programs. Such awards
may be settled in the form of Common Shares issued under this Plan. Such Common
Shares shall be treated for all purposes under the Plan like Common Shares
issued in settlement of Stock Units and shall, when issued, reduce the number of
Common Shares available under Article 3.

ARTICLE 12.                    PAYMENT OF DIRECTOR'S FEES IN SECURITIES.

         12.1 EFFECTIVE DATE. No provision of this Article 12 shall be
effective unless and until the Board has determined to implement such provision.

         12.2 ELECTIONS TO RECEIVE NSOS, RESTRICTED SHARES OR STOCK UNITS. An
Outside Director may elect to receive his or her annual retainer payments and
meeting fees from the Company in the form of cash, NSOs, Restricted Shares,
Stock Units, or a combination thereof, as determined by the Board. Such NSOs,
Restricted Shares and Stock Units shall be issued under the Plan. An election
under this Article 12 shall be filed with the Company on the prescribed form.

         12.3 NUMBER AND TERMS OF NSOS, RESTRICTED SHARES OR STOCK UNITS. The
number of NSOs, Restricted Shares or Stock Units to be granted to Outside
Directors in lieu of annual retainers and meeting fees that would otherwise be
paid in cash shall be calculated in a manner determined by the Board. The terms
of such NSOs, Restricted Shares or Stock Units shall also be determined by the
Board.

ARTICLE 13.                    LIMITATION ON RIGHTS

         13.1 RETENTION RIGHTS. Neither the Plan nor any Award granted under the
Plan shall be deemed to give any individual a right to remain an Employee,
Outside Director or Consultant of the Company, a Parent or a Subsidiary. The
Company and its Parents and Subsidiaries reserve the right to terminate the
service of any Employee, Outside Director or Consultant at any time, with or
without cause, subject to applicable laws, the Company's certificate of
incorporation and by-laws and a written employment agreement (if any).

         13.2 STOCKHOLDERS' RIGHTS. A Participant shall have no dividend
rights, voting rights or other rights as a stockholder with respect to any
Common Shares covered by his or her Award prior to the time when a stock
certificate for such Common Shares is issued or, in the case of an

                                      E-12
<PAGE>

Option, the time when he or she becomes entitled to receive such Common Shares
by filing a notice of exercise and paying the Exercise Price. No adjustment
shall be made for cash dividends or other rights for which the record date is
prior to such time, except as expressly provided in Articles 8, 9 and 10.

         13.3 REGULATORY REQUIREMENTS. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Common Shares under the
Plan shall be subject to all applicable laws, rules and regulations and such
approval by any regulatory body as may be required. The Company reserves the
right to restrict, in whole or in part, the delivery of Common Shares pursuant
to any Award prior to the satisfaction of all legal requirements relating to the
issuance of such Common Shares, to their registration, qualification or listing
or to an exemption from registration, qualification or listing.

ARTICLE 14.                    LIMITATION ON PAYMENTS

         14.1 BASIC RULE. Any provision of the Plan to the contrary
notwithstanding, in the event that the independent auditors most recently
selected by the Board (the "Auditors") determine that any payment or transfer by
the Company under the Plan to or for the benefit of a Participant (a "Payment")
would be nondeductible by the Company for federal income tax purposes because of
the provisions concerning "excess parachute payments" in section 280G of the
Code, then the aggregate present value of all Payments shall be reduced (but not
below zero) to the Reduced Amount; provided that the Committee, at the time of
making an Award under this Plan or at any time thereafter, may specify in
writing that such Award shall not be so reduced and shall not be subject to this
Article 14. For purposes of this Article 14, the "Reduced Amount" shall be the
amount, expressed as a present value, which maximizes the aggregate present
value of the Payments without causing any Payment to be nondeductible by the
Company because of section 280G of the Code.

         14.2 REDUCTION OF PAYMENTS. If the Auditors determine that any Payment
would be nondeductible by the Company because of section 280G of the Code, then
the Company shall promptly give the Participant notice to that effect and a copy
of the detailed calculation thereof and of the Reduced Amount, and the
Participant may then elect, in his or her sole discretion, which and how much of
the Payments shall be eliminated or reduced (as long as after such election the
aggregate present value of the Payments equals the Reduced Amount) and shall
advise the Company in writing of his or her election within 10 days of receipt
of notice. If no such election is made by the Participant within such 10-day
period, then the Company may elect which and how much of the Payments shall be
eliminated or reduced (as long as after such election the aggregate present
value of the Payments equals the Reduced Amount) and shall notify the
Participant promptly of such election. For purposes of this Article 14, present
value shall be determined in accordance with section 280G(d)(4) of the Code. All
determinations made by the Auditors under this Article 14 shall be binding upon
the Company and the Participant and shall be made within 60 days of the date
when a Payment becomes payable or transferable. As promptly as practicable
following such determination and the elections hereunder, the Company shall pay
or transfer to or for the benefit of the Participant such amounts

                                      E-13
<PAGE>

as are then due to him or her under the Plan and shall promptly pay or transfer
to or for the benefit of the Participant in the future such amounts as become
due to him or her under the Plan.

         14.3 OVERPAYMENTS AND UNDERPAYMENTS. As a result of uncertainty in the
application of section 280G of the Code at the time of an initial determination
by the Auditors hereunder, it is possible that Payments will have been made by
the Company which should not have been made (an "Overpayment") or that
additional Payments which will not have been made by the Company could have been
made (an "Underpayment"), consistent in each case with the calculation of the
Reduced Amount hereunder. In the event that the Auditors, based upon the
assertion of a deficiency by the Internal Revenue Service against the Company or
the Participant which the Auditors believe has a high probability of success,
determine that an Overpayment has been made, such Overpayment shall be treated
for all purposes as a loan to the Participant which he or she shall repay to the
Company, together with interest at the applicable federal rate provided in
section 7872(f)(2) of the Code; provided, however, that no amount shall be
payable by the Participant to the Company if and to the extent that such payment
would not reduce the amount which is subject to taxation under section 4999 of
the Code. In the event that the Auditors determine that an Underpayment has
occurred, such Underpayment shall promptly be paid or transferred by the Company
to or for the benefit of the Participant, together with interest at the
applicable federal rate provided in section 7872(f)(2) of the Code.

         14.4 RELATED CORPORATIONS. For purposes of this Article 14, the term
"Company" shall include affiliated corporations to the extent determined by the
Auditors in accordance with section 280G(d)(5) of the Code.

ARTICLE 15.                    WITHHOLDING TAXES

         15.1 GENERAL. To the extent required by applicable federal, state,
local or foreign law, a Participant or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

         15.2 SHARE WITHHOLDING. The Committee may permit a Participant to
satisfy his or her statutory withholding requirements by having the Company
withhold all or a portion of any Common Shares that otherwise would be issued to
him or her or by surrendering all or a portion of any Common Shares that he or
she previously acquired. Such Common Shares shall be valued at their Fair Market
Value on the date when taxes otherwise would be withheld in cash.

ARTICLE 16.                    FUTURE OF THE PLAN.

         16.1 TERM OF THE PLAN. The Plan, as set forth herein, was adopted on
March 10, 1998, and shall become effective on such date, subject to the approval
of the stockholders of the Company. The Plan shall remain in effect until it is
terminated under Section 16.2, except that no ISOs shall be granted after March
10, 2008.

                                      E-14
<PAGE>

         16.2 AMENDMENT OR TERMINATION. The Board may, at any time and for any
reason, amend or terminate the Plan. An amendment of the Plan shall be subject
to the approval of the Company's stockholders only to the extent required by
applicable laws, regulations or rules. No Awards shall be granted under the Plan
after the termination thereof. The termination of the Plan, or any amendment
thereof, shall not affect any Award previously granted under the Plan.

ARTICLE 17.                    DEFINITIONS.

         17.1 "AWARD" means any award of an Option, an SAR, a Restricted Share
or a Stock Unit under the Plan.

         17.2 "BOARD" means the Company's Board of Directors, as constituted
from time to time.

         17.3 "CHANGE IN CONTROL" shall mean the occurrence of any of the
following events:

                  (a) The consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization, if
more than 50% of the combined voting power of the continuing or surviving
entity's securities outstanding immediately after such merger, consolidation or
other reorganization is owned by persons who were not stockholders of the
Company immediately prior to such merger, consolidation or other reorganization;

                  (b) A change in the composition of the Board, as a result of
which fewer than one-half of the incumbent directors are directors who either:

                           (A)      Had been directors of the Company 24 months
prior to such change; or

                           (B) Were elected, or nominated for election, to the
Board with the affirmative votes of at least a majority of the directors who had
been directors of the Company 24 months prior to such change and who were still
in office at the time of the election or nomination; or

                  (c) Any "person" (as such term is used in sections 13(d) and
14(d) of the Exchange Act) by the acquisition or aggregation of securities is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company's
then outstanding securities ordinarily (and apart from rights accruing under
special circumstances) having the right to vote at elections of directors (the
"Base Capital Stock"); except that any change in the relative beneficial
ownership of the Company's securities by any person resulting solely from a
reduction in the aggregate number of outstanding shares of Base Capital Stock,
and any decrease thereafter in such person's ownership of securities, shall be
disregarded until such person increases in any manner, directly or indirectly,
such person's beneficial ownership of any securities of the Company.

                                      E-15
<PAGE>

         The term "Change in Control" shall not include a transaction, the sole
purpose of which is to change the state of the Company's incorporation.

         17.4     "CODE" means the Internal Revenue Code of 1986, as amended.

         17.5     "COMMITTEE" means a committee of the Board, as described in
Article 2.

         17.6     "COMMON SHARE" means one share of the common stock of the
Company.

         17.7     "COMPANY" means NetLojix Communications, Inc., a Delaware
corporation.

         17.8     "CONSULTANT" means a consultant or adviser who provides bona
fide services to the Company, a Parent or a Subsidiary as an independent
contractor. Service as a Consultant shall be considered employment for all
purposes of the Plan, except as provided in Section 4.2.

         17.9     "EMPLOYEE" means a common-law employee of the Company, a
Parent or a Subsidiary.

         17.10    "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         17.11    "EXERCISE PRICE," in the case of an Option, means the amount
for which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement. "Exercise Price," in the
case of an SAR, means an amount, as specified in the applicable SAR Agreement,
which is subtracted from the Fair Market Value of one Common Share in
determining the amount payable upon exercise of such SAR.

         17.12    "FAIR MARKET VALUE" means the market price of Common Shares,
determined by the Committee as follows:

                  (a) If the Common Shares were traded over-the-counter on the
date in question but were not traded on the Nasdaq system or the Nasdaq National
Market System, then the Fair Market Value shall be equal to the mean between the
last reported representative bid and asked prices quoted for such date by the
principal automated inter-dealer quotation system on which the Common Shares are
quoted or, if the Common Shares are not quoted on any such system, by the "Pink
Sheets" published by the National Quotation Bureau, Inc.;

                  (b) If the Common Shares were traded over-the-counter on the
date in question and were traded on the Nasdaq system or the Nasdaq National
Market System, then the Fair Market Value shall be equal to the last-transaction
price quoted for such date by the Nasdaq system or the Nasdaq National Market
System;

                  (c) If the Common Shares were traded on a stock exchange on
the date in question, then the Fair Market Value shall be equal to the closing
price reported by the applicable composite transactions report for such date;
and

                                      E-16
<PAGE>

                  (d) If none of the foregoing provisions is applicable, then
the Fair Market Value shall be determined by the Committee in good faith on such
basis as it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in the Western Edition of THE WALL STREET
JOURNAL. Such determination shall be conclusive and binding on all persons.

         17.13    "ISO" means an incentive stock option described in section
422(b) of the Code.

         17.14    "NSO" means a stock option not described in sections 422 or
423 of the Code.

         17.15    "OPTION" means an ISO or NSO granted under the Plan and
entitling the holder to purchase one Common Share.

         17.16    "OPTIONEE" means an individual or estate who holds an Option
or SAR.

         17.17    "OUTSIDE DIRECTOR" shall mean a member of the Board who is not
an Employee. Service as an Outside Director shall be considered employment for
all purposes of the Plan, except as provided in Section 4.2.

         17.18    "PARENT" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent
on a date after the adoption of the Plan shall be considered a Parent
commencing as of such date.

         17.19    "PARTICIPANT" means an individual or estate who holds an
Award.

         17.20    "PLAN" means this 1998 Stock Incentive Plan of NetLojix
Communications, Inc., as amended from time to time.

         17.21    "RESTRICTED SHARE" means a Common Share awarded under the
Plan.

         17.22    "SAR" means a stock appreciation right granted under the Plan.

         17.23    "SAR AGREEMENT" means the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to his
or her SAR.

         17.24    "STOCK AWARD AGREEMENT" means the agreement between the
Company and the recipient of a Restricted Share or Stock Unit which contains the
terms, conditions and restrictions pertaining to such Restricted Share or Stock
Unit.

         17.25    "STOCK OPTION AGREEMENT" means the agreement between the
Company and an Optionee which contains the terms, conditions and restrictions
pertaining to his or her Option.

                                      E-17
<PAGE>

         17.26    "STOCK UNIT" means a bookkeeping entry representing the
equivalent of one Common Share, as awarded under the Plan.

         17.27    "SUBSIDIARY" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that attains
the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

ARTICLE 18.                    EXECUTION.

         To record the adoption of the Plan by the Board, the Company has caused
its duly authorized officer to affix the corporate name and seal hereto.

                          NETLOJIX COMMUNICATIONS, INC.

                          By         /s/ ANTHONY E. PAPA
                            --------------------------------------
                                    Anthony E. Papa,  Chairman
                                    and Chief Executive Officer

                                      E-18

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