Document:

<PAGE>

                                                                    EXHIBIT 10.7

                                                                  EXECUTION COPY

                                  $100,000,000

                                CREDIT AGREEMENT

                            Dated as of June 27, 2003

                                      Among

                            MAGUIRE PROPERTIES, L.P.,

                                  as Borrower,

                           MAGUIRE PROPERTIES, INC.,

                              as Parent Guarantor,

                     THE SUBSIDIARY GUARANTORS NAMED HEREIN,

                                 as Guarantors,

                        THE INITIAL LENDERS NAMED HEREIN,

                               as Initial Lenders,

                               WACHOVIA BANK, NA,

                            as Initial Issuing Bank,

                          CITICORP NORTH AMERICA, INC.,

                as Administrative Agent and as Collateral Agent,

                           WACHOVIA SECURITIES, INC.,

                              as Syndication Agent,

              BANK ONE, NA, COMMERZBANK AG and FLEET NATIONAL BANK,

                           as Co-Documentation Agents,

                                BANK OF THE WEST,

                            as Senior Managing Agent.

                                       and

          CITIGROUP GLOBAL MARKETS INC. and WACHOVIA SECURITIES, INC.,

            as Joint Lead Arrangers and Joint Book Running Managers

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                              PAGE
<S>                                                                                  <C>
                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01. Certain Defined Terms................................................    1
SECTION 1.02. Computation of Time Periods; Other Definitional Provisions...........   23
SECTION 1.03. Accounting Terms.....................................................   23

                                   ARTICLE II
           AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

SECTION 2.01. The Advances and the Letters of Credit...............................   24
SECTION 2.02. Making the Advances..................................................   25
SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit...   26
SECTION 2.04. Repayment of Advances................................................   27
SECTION 2.05. Termination or Reduction of the Commitments..........................   28
SECTION 2.06. Prepayments..........................................................   28
SECTION 2.07. Interest.............................................................   29
SECTION 2.08. Fees.................................................................   30
SECTION 2.09. Conversion of Advances...............................................   31
SECTION 2.10. Increased Costs, Etc.................................................   32
SECTION 2.11. Payments and Computations............................................   33
SECTION 2.12. Taxes................................................................   35
SECTION 2.13. Sharing of Payments, Etc.............................................   37
SECTION 2.14. Use of Proceeds......................................................   38
SECTION 2.15. Evidence of Debt.....................................................   38
SECTION 2.16. Extension of Termination Date........................................   38

                                   ARTICLE III
            CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT

SECTION 3.01. Conditions Precedent to Initial Extension of Credit..................   39
SECTION 3.02. Conditions Precedent to Each Borrowing and Issuance..................   44
SECTION 3.03. Determinations Under Section 3.01....................................   45

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Loan Parties...................   45

                                    ARTICLE V
                          COVENANTS OF THE LOAN PARTIES

SECTION 5.01. Affirmative Covenants................................................   49
SECTION 5.02. Negative Covenants...................................................   54
SECTION 5.03. Reporting Requirements...............................................   60
SECTION 5.04. Financial Covenants..................................................   62
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                                   <C>
                                   ARTICLE VI
                                EVENTS OF DEFAULT

SECTION 6.01. Events of Default ...................................................   63
SECTION 6.02. Actions in Respect of the Letters of Credit upon Default ............   65

                                   ARTICLE VII
                                    GUARANTY

SECTION 7.01. Guaranty; Limitation of Liability....................................   65
SECTION 7.02. Guaranty Absolute....................................................   66
SECTION 7.03. Waivers and Acknowledgments..........................................   67
SECTION 7.04. Subrogation..........................................................   68
SECTION 7.05. Guaranty Supplements.................................................   69
SECTION 7.06. Indemnification by Guarantors .......................................   69
SECTION 7.07. Subordination........................................................   69
SECTION 7.08. Continuing Guaranty..................................................   70

                                  ARTICLE VIII
                                   THE AGENTS

SECTION 8.01. Authorization and Action.............................................   70
SECTION 8.02. Agents' Reliance, Etc................................................   71
SECTION 8.03. CNAI and Affiliates..................................................   71
SECTION 8.04. Lender Party Credit Decision.........................................   71
SECTION 8.05. Indemnification by Lender Parties....................................   71
SECTION 8.06. Successor Agents.....................................................   72

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.01. Amendments, Etc......................................................   73
SECTION 9.02. Notices, Etc.........................................................   74
SECTION 9.03. No Waiver; Remedies..................................................   75
SECTION 9.04. Costs and Expenses...................................................   75
SECTION 9.05. Right of Set-off.....................................................   76
SECTION 9.06. Binding Effect.......................................................   77
SECTION 9.07. Assignments and Participations.......................................   77
SECTION 9.08. Execution in Counterparts............................................   79
SECTION 9.09. No Liability of the Issuing Banks....................................   80
SECTION 9.10. Confidentiality......................................................   80
SECTION 9.11. Release of Collateral................................................   80
SECTION 9.12. Jurisdiction, Etc....................................................   81
SECTION 9.13. Governing Law........................................................   81
SECTION 9.14. Waiver of Jury Trial.................................................    1
</TABLE>

                                       ii

<PAGE>

<TABLE>
<CAPTION>
SCHEDULES
<S>                     <C>
Schedule I         -    Commitments and Applicable Lending Offices
Schedule II        -    Eligible Real Estate Assets
Schedule 4.01(b)   -    Subsidiaries
Schedule 4.01(d)   -    Authorizations, Approvals, Actions, Notices and Filings
Schedule 4.0l(f)   -    Disclosed Litigation
Schedule 4.01(n)   -    Existing Debt
Schedule 4.01(o)   -    Surviving Debt
Schedule 4.01(p)   -    Existing Liens
Schedule 4.01(q)   -    Owned Real Property
Schedule 4.01(r)   -    Leased Real Property
Schedule 4.01(s)   -    Environmental Concerns
Schedule 4.0l(w)   -    Existing Loans to Directors and Executive Officers
Schedule 4.0l(x)   -    Excluded Subsidiaries and Excluded Subsidiary Agreements
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS
<S>                     <C>
Exhibit A          -    Form of Note
Exhibit B          -    Form of Notice of Borrowing
Exhibit C          -    Form of Guaranty Supplement
Exhibit D          -    Form of Assignment and Acceptance
Exhibit E-l        -    Form of Opinion of Counsel to the Loan Parties
Exhibit E-2        -    Form of Opinion of Maryland Counsel to the Loan Parties
Exhibit F-l        -    Form of Security Agreement (Maguire Partners-Plaza Las Fuentes, LLC
                        and Maguire/Cerritos I, LLC)
Exhibit F-2        -    Form of Security Agreement (Maguire Properties Services, Inc.)
Exhibit G          -    Form of Mortgage
Exhibit H          -    Form of Borrowing Base Certificate
Exhibit I          -    Form of Letter of Credit
</TABLE>

                                       iii
<PAGE>

                                CREDIT AGREEMENT

                  CREDIT AGREEMENT dated as of June 27,2003 among MAGUIRE
PROPERTIES, L.P., a Maryland limited partnership (the "BORROWER"), MAGUIRE
PROPERTIES, INC., a Maryland corporation (the "GENERAL PARTNER" or the "PARENT
GUARANTOR"), the entities listed on the signature pages hereof as the guarantors
(together with any Additional Guarantors (as hereinafter defined) acceding
hereto pursuant to Section 7.05, the "SUBSIDIARY GUARANTORS" and, together with
the Parent Guarantor, the "GUARANTORS") the banks, financial institutions and
other institutional lenders listed on the signature pages hereof as the initial
lenders (the "INITIAL LENDERS"), WACHOVIA BANK, NA, as the initial issuer of
Letters of Credit (as hereinafter defined) (the "INITIAL ISSUING BANK"),
CITICORP NORTH AMERICA, INC. ("CNAI"), as administrative agent (together with
any successor administrative agent appointed pursuant to Article VII, the
"ADMINISTRATIVE AGENT") for the Lender Parties (as hereinafter defined), CNAI,
as collateral agent (together with any successor collateral agent appointed
pursuant to Article VIII, the "COLLATERAL AGENT", and together with the
Administrative Agent, the "AGENTS") for the Lender Parties, WACHOVIA SECURITIES,
INC. ("WSI), as syndication agent, BANK ONE, NA, COMMERZBANK AG AND FLEET
NATIONAL BANK, as co-documentation agents, BANK OF THE WEST, as senior managing
agent, and CITIGROUP GLOBAL MARKETS INC. ("CITIGROUP") and WSI, as joint lead
arrangers and joint book running managers (the "ARRANGERS").

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

                  SECTION 1.01. Certain Defined Terms. As used in this
Agreement, the following terms shall have the following meanings (such meanings
to be equally applicable to both the singular and plural forms of the terms
defined):

                  "ADDITIONAL GUARANTOR" has the meaning specified in Section
         7.05.

                  "ADJUSTED EBITDA" means, for the fiscal quarter of the Parent
         Guarantor most recently ended for which financial statements are
         required to be delivered to the Lender Parties pursuant to Section
         5.03(b) or (c), as the case may be, (a) EBITDA less (b) an amount equal
         to 25% of the Capital Expenditure Reserve for all Real Property;
         provided, however, that for purposes of this definition, in the case of
         any acquisition or disposition of any direct or indirect interest in
         any Real Property (including through the acquisition of Equity
         Interests) by the Parent Guarantor or any of its Subsidiaries during
         any fiscal quarter, Adjusted EBITDA will include with respect to such
         Real Property an adjustment to include, in the case of an acquisition,
         and to exclude, in the case of a disposition, an amount equal to the
         product of (y) the actual Adjusted EBITDA generated by the Real
         Property so acquired or disposed of during such fiscal quarter,
         multiplied by (z) a fraction the numerator of which is the total number
         of days in such fiscal quarter and the denominator of which is the
         actual number of days in such fiscal quarter that such Real Property
         was owned by the Parent Guarantor or such Subsidiary.

                  "ADJUSTED NET OPERATING INCOME" means, for any Eligible Real
         Estate Asset, the Net Operating Income attributable to such Eligible
         Real Estate Asset less the sum of (a) the amount, if any, by which (i)
         3% of all rental and other income from the operation of such Eligible
         Real Estate Asset for the consecutive four fiscal quarters of the
         Parent Guarantor most recently ended for which financial statements are
         required to be delivered to the Lender Parties pursuant to Section
         5.03(b) or (c), as the case may be, exceeds (ii) all management fees
         payable in respect of such Eligible Real Estate Asset during such
         fiscal period and (b) the total Capital Expenditure Reserve for such
         Eligible Real Estate Asset.

<PAGE>

                  "ADMINISTRATIVE AGENT" has the meaning specified in the
         recital of parties to this Agreement.

                  "ADMINISTRATIVE AGENT'S ACCOUNT" means the account of the
         Administrative Agent maintained by the Administrative Agent with
         Citibank, N.A., at its office at 2 Penns Way, Suite 200, New Castle,
         Delaware 19720, ABA No. 021000089, Account No. 36852248, Ref: Maguire
         Properties, Attention: David Graber, or such other account as the
         Administrative Agent shall specify in writing to the Lender Parties.

                  "ADVANCE" means a Revolving Credit Advance or a Letter of
         Credit Advance.

                  "AFFILIATE" means, as to any Person, any other Person that,
         directly or indirectly, controls, is controlled by or is under common
         control with such Person or is a director or officer of such Person.
         For purposes of this definition, the term "control" (including the
         terms "controlling", "controlled by" and "under common control with")
         of a Person means the possession, direct or indirect, of the power to
         vote 10% or more of the Voting Interests of such Person or to direct or
         cause the direction of the management and policies of such Person,
         whether through the ownership of Voting Interests, by contract or
         otherwise.

                  "AGENTS" has the meaning specified in the recital of parties
         to this Agreement.

                  "AGREEMENT VALUE" means, for each Hedge Agreement, on any date
         of determination, an amount determined by the Administrative Agent
         equal to: (a) in the case of a Hedge Agreement documented pursuant to
         the Master Agreement (Multicurrency-Cross Border) published by the
         International Swap and Derivatives Association, Inc. (the "MASTER
         AGREEMENT"), the amount, if any, that would be payable by any Loan
         Party or any of its Subsidiaries to its counterparty to such Hedge
         Agreement, as if (i) such Hedge Agreement was being terminated early on
         such date of determination, (ii) such Loan Party or Subsidiary was the
         sole "Affected Party", and (iii) the Administrative Agent was the sole
         party determining such payment amount (with the Administrative Agent
         making such determination pursuant to the provisions of the form of
         Master Agreement); or (b) in the case of a Hedge Agreement traded on an
         exchange, the mark-to-market value of such Hedge Agreement, which will
         be the unrealized loss on such Hedge Agreement to the Loan Party or
         Subsidiary of a Loan Party party to such Hedge Agreement determined by
         the Administrative Agent based on the settlement price of such Hedge
         Agreement on such date of determination, or (c) in all other cases, the
         mark-to-market value of such Hedge Agreement, which will be the
         unrealized loss on such Hedge Agreement to the Loan Party or Subsidiary
         of a Loan Party party to such Hedge Agreement determined by the
         Administrative Agent as the amount, if any, by which (i) the present
         value of the future cash flows to be paid by such Loan Party or
         Subsidiary exceeds (ii) the present value of the future cash flows to
         be received by such Loan Party or Subsidiary pursuant to such Hedge
         Agreement; capitalized terms used and not otherwise defined in this
         definition shall have the respective meanings set forth in the above
         described Master Agreement.

                  "ANNUALIZED EBITDA" means, for any period, the product of (a)
         Adjusted EBITDA for such period multiplied by (b) four; provided,
         however, that for purposes of determining Asset Values for the
         calculation of the Leverage Ratio, "ANNUALIZED EBITDA" means (i) for
         the fiscal quarter of the Parent Guarantor ending June 30,2003, the
         product of (A) Adjusted EBITDA for such fiscal quarter multiplied by
         (B) four, (ii) for the fiscal quarter of the Parent Guarantor ending
         September 30, 2003, the product of (A) the sum of (1) Adjusted EBITDA
         for the fiscal quarter of the Parent Guarantor ending June 30,2003 and
         (2) Adjusted EBITDA for the fiscal quarter of the Parent Guarantor
         ending September 30, 2003, multiplied by (B) two, (iii) for the fiscal
         quarter of

                                       2

<PAGE>

         the Parent Guarantor ending December 31,2003, the product of (A) the
         sum of (1) Adjusted EBITDA for the fiscal quarter of the Parent
         Guarantor ending June 30,2003, (2) Adjusted EBITDA for the fiscal
         quarter of the Parent Guarantor ending September 30,2003 and (3)
         Adjusted EBITDA for the fiscal quarter of the Parent Guarantor ending
         December 31,2003, multiplied by (B) 1.333, and (iv) for each fiscal
         quarter of the Parent Guarantor ending on or after March 31,2004, the
         sum of Adjusted EBITDA for each of the four consecutive fiscal quarters
         of the Parent Guarantor then ended.

                  "APPLICABLE CAPITALIZATION RATE" means, with respect to any
         Eligible Real Estate Asset, a percentage determined with reference to
         the type of Real Property comprising such Eligible Real Estate Asset as
         set forth below:

<TABLE>
<CAPTION>
----------------------------------------------------------
                                            APPLICABLE
             ASSET TYPE                CAPITALIZATION RATE
----------------------------------------------------------
<S>                                    <C>
Class A CBD Office Real Property              8.50%
----------------------------------------------------------
Non-Class A CBD Office Real Property          9.50%
----------------------------------------------------------
Non-CBD Office Real Property                  9.50%
----------------------------------------------------------
Non-Office Real Property                     10.50%
----------------------------------------------------------
</TABLE>

                  "APPLICABLE LENDING OFFICE" means, with respect to each Lender
         Party, such Lender Party's Domestic Lending Office in the case of a
         Base Rate Advance and such Lender Party's Eurodollar Lending Office in
         the case of a Eurodollar Rate Advance.

                  "APPLICABLE MARGIN" means, at any date of determination, a
         percentage per annum determined by reference to the Borrower's Debt
         Rating as set forth below:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
                                                  APPLICABLE        APPLICABLE MARGIN
PRICING               DEBT RATINGS              MARGIN FOR BASE    FOR EURODOLLAR RATE
LEVEL                (S&P/MOODY'S)               RATE ADVANCES          ADVANCES
-------------------------------------------------------------------------------------
<S>         <C>                                 <C>                <C>
I           > or = BBB-/Baa3 but < BBB/Baa2         0.10%                1.10%
-------------------------------------------------------------------------------------
II          > or = BBB/Baa2                            0%                0.90%
-------------------------------------------------------------------------------------
</TABLE>

         ; provided, however, that if on any date of determination the Borrower
         shall not maintain a Debt Rating established by S&P and Moody's of at
         least BBB- or Baa3, the Applicable Margin at such date shall mean a
         percentage per annum determined by reference to the Borrower's Leverage
         Ratio as set forth below:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
                                             APPLICABLE          APPLICABLE MARGIN
PRICING                                    MARGIN FOR BASE      FOR EURODOLLAR RATE
LEVEL         LEVERAGE RATIO                RATE ADVANCES            ADVANCES
----------------------------------------------------------------------------------
<S>        <C>                             <C>                  <C>
III        > 55%                                 1.00%                 2.00%
----------------------------------------------------------------------------------
IV         > 45% BUT < or = 55%                  0.75%                 1.75%
----------------------------------------------------------------------------------
V          > 35% BUT < or = 45%                  0.50%                 1.50%
----------------------------------------------------------------------------------
</TABLE>

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<PAGE>

<TABLE>
<S>        <C>                                    <C>                    <C>
----------------------------------------------------------------------------------
VI         < or = 35%                             0.375%                 1.375%
----------------------------------------------------------------------------------
</TABLE>

         The Applicable Margin for each Base Rate Advance shall be determined by
         reference to the Borrower's Debt Rating or the Borrower's Leverage
         Ratio, as applicable, in effect from time to time and the Applicable
         Margin for any Interest Period for all Eurodollar Rate Advances
         comprising part of the same Borrowing shall be determined by reference
         to the Borrower's Debt Rating or the Borrower's Leverage Ratio, as
         applicable, in effect on the first day of such Interest Period;
         provided, however, that (a)(i) no change in the Applicable Margin
         resulting from the Borrower's Leverage Ratio shall be effective until
         three Business Days after the date on which the Administrative Agent
         receives (y) the financial statements required to be delivered pursuant
         to Section 5.03(b) or (c), as the case may be, and (z) a certificate of
         the Chief Financial Officer of the Borrower demonstrating the
         Borrower's Leverage Ratio, and (b) the Applicable Margin shall be at
         Pricing Level in for so long as the Borrower has not submitted to the
         Administrative Agent as and when required under Section 5.03(b) or (c),
         as applicable, the information described in clause (a)(i) of this
         proviso.

                  "APPLICABLE PERCENTAGE" means (a) for any period in which the
         average daily Facility Exposure for such period exceeds 50% of the
         aggregate Revolving Credit Commitments, 0.15% per annum and (b) in all
         other cases, 0.25% per annum.

                  "APPRAISAL" means an appraisal complying with the requirements
         of the Federal Financial Institutions Reform, Recovery and Enforcement
         Act of 1989, prepared for the account of the Collateral Agent (for the
         benefit of the Lenders) by Cushman & Wakefield, Inc. or another MAI
         appraiser selected by the Collateral Agent in consultation with the
         Borrower, and otherwise in scope, form and substance satisfactory to
         the Collateral Agent.

                  "APPRAISED VALUE" means, for any Eligible Real Estate Asset,
         the market value of such Eligible Real Estate Asset, determined by the
         Administrative Agent based on an Appraisal of such Eligible Real Estate
         Asset, after discretionary adjustments of the value shown in such
         Appraisal following a review by the Administrative Agent's appraisal
         review department.

                  "ARRANGERS" has the meaning specified in the recital of
         parties to this Agreement.

                  "ASSET VALUE" means, at any date of determination, (a) in the
         case of any Real Property (other than any Development Property), (i)
         the Annualized EBITDA for such Real Property less the amount, if any,
         by which (x) 3% of all rental and other income from the operation of
         any Real Property for the period for which Annualized EBITDA has been
         calculated exceeds (y) all management fees payable in respect of such
         Real Property during such period, divided by (ii) the Applicable
         Capitalization Rate, provided that for Gas Company Tower, KPMG Tower,
         US Bank Tower and Wells Fargo Tower, Annualized EBITDA shall include an
         upward adjustment (in an amount determined in the reasonable discretion
         of the Administrative Agent) for non-cancellable Tenancy Leases
         executed and in place on the Closing Date with rent thereunder
         commencing on or before July 1, 2003, to the extent not otherwise
         included in the calculation of Annualized EBITDA, less, in the case of
         US Bank Tower, a downward adjustment (in an amount determined in the
         reasonable discretion of the Administrative Agent) for the cancelled
         Tenancy Lease with Arthur Andersen LLP, to the extent not otherwise
         excluded in the calculation of Annualized EBITDA, provided further that
         in the case of any Real Property (other than any Development Property)
         in which the Parent Guarantor or any of its Subsidiaries has acquired
         any direct or indirect interest (including through the acquisition of
         Equity Interests) during any fiscal quarter, "ASSET VALUE" shall be the
         lesser of (1) the Annualized EBITDA for such Real Property divided by
         the Applicable Capitalization Rate and (2) the purchase price of such
         Real Property, and (b) in

                                       4

<PAGE>

         the case of any Development Property, the book value of such
         Development Property as determined pursuant to GAAP.

                  "ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance
         entered into by a Lender Party and an Eligible Assignee, and accepted
         by the Administrative Agent, in accordance with Section 9.07 and in
         substantially the form of Exhibit D hereto,

                  "AVAILABLE AMOUNT" of any Letter of Credit means, at any time,
         the maximum amount available to be drawn under such Letter of Credit at
         such time (assuming compliance at such time with all conditions to
         drawing).

                  "BANKRUPTCY LAW" means any applicable law governing a
         proceeding of the type referred to in Section 6.01(f) or Title 11, U.S.
         Code, or any similar foreign, federal or state law for the relief of
         debtors.

                  "BASE RATE" means a fluctuating interest rate per annum in
         effect from time to time, which rate per annum shall at all times be
         equal to the higher of (a) the rate of interest announced publicly by
         Citibank, N.A. in New York, New York, from time to time, as Citibank,
         N.A.'s base rate and (b) 1/2 of 1% per annum above the Federal Funds
         Rate.

                  "BASE RATE ADVANCE" means an Advance that bears interest as
         provided in Section 2.07(a)(i).

                  "BORROWER" has the meaning specified in the recital of parties
         to this Agreement.

                  "BORROWER'S ACCOUNT" means the account of the Borrower
         maintained by the Borrower with Bank of the West, at its office at 1450
         Treat Boulevard, Walnut Creek, California 94596, ABA No. 121100782,
         Account No. 729-003749, for credit to A/C No. [_________________], Ref:
         Maguire Properties, LP, or such other account as the Borrower shall
         specify in writing to the Administrative Agent.

                  "BORROWING" means a borrowing consisting of simultaneous
         Revolving Credit Advances of the same Type made by the Lenders.

                  "BORROWING BASE ASSET VALUE" means, at any date of
         determination, for any Eligible Real Estate Asset, the lesser of (a)
         the Appraised Value of such Eligible Real Estate Asset, and (b) the
         Adjusted Net Operating Income of such Eligible Real Estate Asset
         divided by the Applicable Capitalization Rate.

                  "BORROWING BASE CERTIFICATE" means a certificate in
         substantially the form of Exhibit H hereto, duly certified by the Chief
         Financial Officer of the Parent Guarantor.

                  "BUSINESS DAY" means a day of the year on which banks are not
         required or authorized by law to close in New York City and, if the
         applicable Business Day relates to any Eurodollar Rate Advances, on
         which dealings are carried on in the London interbank market.

                  "CAPITAL EXPENDITURE RESERVE" means, on any date of
         determination, (a) in the case of Non-Hotel Real Property, the greater
         of (i) the product of (A) U.S.$0.25 times (B) the total number of
         rentable square feet of such Non-Hotel Real Property and (ii) capital
         expenditures actually made for the purpose of maintenance of such
         Non-Hotel Real Property and not reimbursable by the lessee of such
         Non-Hotel Real Property for the consecutive four fiscal

                                       5

<PAGE>

         quarters of the Parent Guarantor most recently ended for which
         financial statements are required to be delivered pursuant to Section
         5.03(b) or (c), as the case may be, and (b) in the case of Hotel Real
         Property, 4.0% of all rental and other income from the operation of
         such Hotel Real Property for the consecutive four fiscal quarters of
         the Parent Guarantor most recently ended for which financial statements
         are required to be delivered pursuant to Section 5.03(b) or (c), as the
         case may be.

                  "CAPITALIZED LEASES" means all leases that have been or should
         be, in accordance with GAAP, recorded as capitalized leases.

                  "CASH EQUIVALENTS" means any of the following, to the extent
         owned by the Borrower or any of its Subsidiaries free and clear of all
         Liens other than Liens created under the Collateral Documents and
         having a maturity of not greater than 90 days from the date of issuance
         thereof: (a) readily marketable direct obligations of the Government of
         the United States or any agency or instrumentality thereof or
         obligations unconditionally guaranteed by the full faith and credit of
         the Government of the United States, (b) insured certificates of
         deposit of or time deposits with any commercial bank that is a Lender
         Party or a member of the Federal Reserve System, issues (or the parent
         of which issues) commercial paper rated as described in clause (c)
         below, is organized under the laws of the United States or any State
         thereof and has combined capital and surplus of at least $1,000,000,000
         or (c) commercial paper in an aggregate amount of not more than
         $50,000,000 per issuer outstanding at any time, issued by any
         corporation organized under the laws of any State of the United States
         and rated at least "Prime-1" (or the then equivalent grade) by Moody's
         or "A-l" (or the then equivalent grade) by S&P.

                  "CBD OFFICE REAL PROPERTY" means Real Property (exclusive of
         any Development Property) located in a metropolitan district with a
         high concentration of office buildings and other structures from which
         commercial businesses operate and that is an office building or a
         structure from which commercial businesses operate.

                  "CERCLA" means the Comprehensive Environmental Response,
         Compensation and Liability Act of 1980, as amended from time to time.

                  "CERCLIS" means the Comprehensive Environmental Response,
         Compensation and Liability Information System maintained by the U.S.
         Environmental Protection Agency.

                  "CHANGE OF CONTROL" means the occurrence of any of the
         following: (a) any Person or two or more Persons acting in concert
         shall have acquired beneficial ownership (within the meaning of Rule
         13d-3 of the Securities and Exchange Commission under the Securities
         Exchange Act of 1934), directly or indirectly, of Voting Interests of
         the General Partner (or other securities convertible into such Voting
         Interests) representing 35% or more of the combined voting power of all
         Voting Interests of the General Partner; or (b) during any period of up
         to 24 consecutive months, commencing after the date of this Agreement,
         individuals who at the beginning of such 24-month period were directors
         of the General Partner shall cease for any reason to constitute a
         majority of the board of directors of the General Partner; or (c) any
         Person or two or more Persons acting in concert shall have acquired by
         contract or otherwise, or shall have entered into a contract or
         arrangement that, upon consummation, will result in its or their
         acquisition of the power to exercise, directly or indirectly, a
         controlling influence over the management or policies of the General
         Partner; or (d) the General Partner ceases to be the general partner of
         the Borrower; or (e) the General Partner ceases to be the legal and
         beneficial owner of all of the general partnership interests in the
         Borrower and of Voting Interests of the Borrower representing at least
         35% of the combined voting power of all Voting Interests of the
         Borrower.

                                       6

<PAGE>

                  "CITIGROUP" has the meaning specified in the recital of
         parties to this Agreement.

                  "CLOSING DATE" means June 27,2003 or such other date as may be
         agreed upon by the Borrower and the Administrative Agent.

                  "CNAI" has the meaning specified in the recital of parties to
         this Agreement.

                  "COLLATERAL" means all "Collateral" referred to in the
         Collateral Documents and all other property that is or is intended to
         be subject to any Lien in favor of the Collateral Agent for the benefit
         of the Secured Parties and will include, without limitation, all
         Eligible Real Estate Assets.

                  "COLLATERAL ACCOUNT" has the meaning specified in the Security
         Agreements.

                  "COLLATERAL AGENT has the meaning specified in the recital of
         parties to this Agreement.

                  "COLLATERAL DOCUMENTS" means the Security Agreements, the
         Mortgages, and any other agreement that creates or purports to create a
         Lien in favor of the Collateral Agent for the benefit of the Secured
         Parties.

                  "COMMITMENT" means a Revolving Credit Commitment or a Letter
         of Credit Commitment.

                  "COMMUNICATIONS" has the meaning specified in Section 9.02(b).

                  "CONFIDENTIAL INFORMATION" means information that any Loan
         Party furnishes to any Agent or any Lender Party in a writing
         designated as confidential, but does not include any such information
         that is or becomes generally available to the public or that is or
         becomes available to such Agent or such Lender Party from a source
         other than the Loan Parties.

                  "CONSOLIDATED" refers to the consolidation of accounts in
         accordance with GAAP.

                  "CONTINGENT OBLIGATION" means, with respect to any Person, any
         Obligation or arrangement of such Person to guarantee or intended to
         guarantee any Debt, leases, dividends or other payment Obligations
         ("PRIMARY OBLIGATIONS") of any other Person (the "PRIMARY OBLIGOR") in
         any manner, whether directly or indirectly, including, without
         limitation, (a) the direct or indirect guarantee, endorsement (other
         than for collection or deposit in the ordinary course of business),
         co-making, discounting with recourse or sale with recourse by such
         Person of the Obligation of a primary obligor, (b) the Obligation to
         make take-or-pay or similar payments, if required, regardless of
         nonperformance by any other party or parties to an agreement or (c) any
         Obligation of such Person, whether or not contingent, (i) to purchase
         any such primary obligation or any property constituting direct or
         indirect security therefor, (ii) to advance or supply funds (A) for the
         purchase or payment of any such primary obligation or (B) to maintain
         working capital or equity capital of the primary obligor or otherwise
         to maintain the net worth or solvency of the primary obligor, (iii) to
         purchase property, assets, securities or services primarily for the
         purpose of assuring the owner of any such primary obligation of the
         ability of the primary obligor to make payment of such primary
         obligation or (iv) otherwise to assure or hold harmless the holder of
         such primary obligation against loss in respect thereof. The amount of
         any Contingent Obligation shall be deemed to be an amount equal to the
         stated or determinable amount of the primary obligation in respect of
         which such Contingent Obligation is made (or, if less, the maximum
         amount of such primary obligation for which such Person may be liable
         pursuant to the terms of the instrument evidencing such Contingent
         Obligation) or, if not stated or determinable,

                                       7

<PAGE>

         the maximum reasonably anticipated liability in respect thereof
         (assuming such Person is required to perform thereunder), as determined
         by such Person in good faith.

                  "CONVERSION", "CONVERT" and "CONVERTED" each refer to a
         conversion of Advances of one Type into Advances of the other Type
         pursuant to Section 2.07(d), 2.09 or 2.10.

                  "CURRENT ASSETS" of any Person means all assets of such Person
         that would, in accordance with GAAP, be classified as current assets of
         a company conducting a business the same as or similar to that of such
         Person, after deducting adequate reserves in each case in which a
         reserve is proper in accordance with GAAP.

                  "CURRENT LIABILITIES" of any Person means (a) all Debt of such
         Person that by its terms is payable on demand or matures within one
         year after the date of its creation (excluding any Debt renewable or
         extendible, at the option of such Person, to a date more than one year
         from such date or arising under a revolving credit or similar agreement
         that obligates the lender or lenders to extend credit during a period
         of more than one year from such date) and (b) all other items
         (including taxes accrued as estimated) that in accordance with GAAP
         would be classified as current liabilities of such Person.

                  "DEBT" of any Person means, without duplication for purposes
         of calculating financial ratios, (a) all indebtedness of such Person
         for borrowed money, (b) all Obligations of such Person for the deferred
         purchase price of property or services other than trade payables
         incurred in the ordinary course of business and not overdue by more
         than 60 days, (c) all Obligations of such Person evidenced by notes,
         bonds, debentures or other similar instruments, (d) all Obligations of
         such Person created or arising under any conditional sale or other
         title retention agreement with respect to property acquired by such
         Person (even though the rights and remedies of the seller or lender
         under such agreement in the event of default are limited to
         repossession or sale of such property), (e) all Obligations of such
         Person as lessee under Capitalized Leases, (f) all Obligations of such
         Person under acceptance, letter of credit or similar facilities, (g)
         all Obligations of such Person to purchase, redeem, retire, defease or
         otherwise make any payment in respect of any Equity Interests in such
         Person or any other Person or any warrants, rights or options to
         acquire such capital stock, valued, in the case of Redeemable Preferred
         Interests, at the greater of its voluntary or involuntary liquidation
         preference plus accrued and unpaid dividends, (h) all Obligations of
         such Person in respect of Hedge Agreements, valued at the Agreement
         Value thereof, (i) all Contingent Obligations of such Person and (j)
         all indebtedness and other payment Obligations referred to in clauses
         (a) through (i) above of another Person secured by (or for which the
         holder of such Debt has an existing right, contingent or otherwise, to
         be secured by) any Lien on property (including, without limitation,
         accounts and contract rights) owned by such Person, even though such
         Person has not assumed or become liable for the payment of such
         indebtedness or other payment Obligations.

                  "DEBT FOR BORROWED MONEY" of any Person means all items that,
         in accordance with GAAP, would be classified as indebtedness on a
         Consolidated balance sheet of such Person, provided, that in the case
         of the Parent Guarantor and its Subsidiaries "Debt for Borrowed Money"
         shall also include, without duplication, the JV Pro Rata Share of Debt
         for Borrowed Money for each Joint Venture.

                  "DEBT RATING" means, as of any date, the lowest rating that
         has been most recently assigned by S&P and Moody's, as the case may be,
         to the long-term senior unsecured non-credit enhanced indebtedness of
         the Borrower or, if applicable, to the "implied rating" of the
         Borrower's long-term senior unsecured credit enhanced debt. For
         purposes of the foregoing, (a) if the ratings

                                       8

<PAGE>

         established by S&P and Moody's shall fall within different levels, the
         Applicable Margin shall be based upon (i) the lower rating, in the
         event such ratings are no more than one level apart or (ii) the average
         of the two ratings, in the event such ratings are more than one level
         apart; (b) if any rating established by S&P or Moody's shall be
         changed, such change shall be effective as of the date on which such
         change is first announced publicly by the rating agency making such
         change; and (c) if S&P or Moody's shall change the basis on which
         ratings are established, each reference to the Borrower's Debt Rating
         announced by S&P or Moody's, as the case may be, shall refer to the
         then equivalent rating by S&P or Moody's, as the case may be.

                  "DEFAULT" means any Event of Default or any event that would
         constitute an Event of Default but for the requirement that notice be
         given or time elapse or both.

                  "DEFAULT TERMINATION NOTICE" has the meaning specified in
         Section 2.0 l(b).

                  "DEVELOPMENT PROPERTIES" means all Real Property that, in
         accordance with GAAP, would be classified as development properties on
         a Consolidated balance sheet of the Parent Guarantor and its
         Subsidiaries.

                  "DISCLOSED LITIGATION" has the meaning specified in Section
         3.01(f).

                  "DOMESTIC LENDING OFFICE" means, with respect to any Lender
         Party, the office of such Lender Party specified as its "Domestic
         Lending Office" opposite its name on Schedule I hereto or in the
         Assignment and Acceptance pursuant to which it became a Lender Party,
         as the case may be, or such other office of such Lender Party as such
         Lender Party may from time to time specify to the Borrower and the
         Administrative Agent.

                  "EBITDA" means, for any period, (a) the sum, determined on a
         Consolidated basis, of (i) net income (or net loss), (ii) interest
         expense, (iii) income tax expense, (iv) depreciation expense and (v)
         amortization expense, in each case of the Parent Guarantor and its
         Subsidiaries, determined in accordance with GAAP for such period, plus
         (b) with respect to each Joint Venture, the JV Pro Rata Share of the
         sum, determined on a Consolidated basis, of (i) net income (or net
         loss), (ii) interest expense, (iii) income tax expense, (iv)
         depreciation expense and (v) amortization expense of such Joint
         Venture, determined in accordance with GAAP for such period.

                  "EFFECTIVE DATE" means the first date on which the conditions
         set forth in Article III shall be satisfied.

                  "ELIGIBLE ASSIGNEE" means (a) with respect to the Revolving
         Credit Facility, (i) a Lender; (ii) an Affiliate or Fund Affiliate of a
         Lender; and (iii) any other Person approved by the Administrative Agent
         and, unless a Default has occurred and is continuing at the time any
         assignment is effected pursuant to Section 9.07, the Borrower, such
         approval not to be unreasonably withheld or delayed, and (b) with
         respect to the Letter of Credit Facility, a Person that is approved by
         the Administrative Agent (such approval not to be unreasonably withheld
         or delayed) and, unless a Default has occurred and is continuing at the
         time any assignment is effected pursuant to Section 9.07, the Borrower,
         such approval not to be unreasonably withheld or delayed; provided,
         however, that neither any Loan Party nor any Affiliate of a Loan Party
         shall qualify as an Eligible Assignee under this definition.

                  "ELIGIBLE REAL ESTATE ASSETS" means only such Real Property
         (a) for which the applicable conditions (as determined by the
         Collateral Agent in its reasonable discretion) in Section 3.01 or

                                       9

<PAGE>

         5.01(j) have been satisfied and as all of the Lenders, in their
         reasonable discretion, shall from time to time elect to consider
         Eligible Real Estate Assets for purposes of this Agreement and (b) that
         is listed on Schedule II hereto.

                  "ENVIRONMENTAL ACTION" means any action, suit, demand, demand
         letter, claim, notice of non-compliance or violation, notice of
         liability or potential liability, investigation, proceeding, consent
         order or consent agreement relating in any way to any Environmental
         Law, any Environmental Permit or Hazardous Material or arising from
         alleged injury or threat to health, safety or the environment,
         including, without limitation, (a) by any governmental or regulatory
         authority for enforcement, cleanup, removal, response, remedial or
         other actions or damages and (b) by any governmental or regulatory
         authority or third party for damages, contribution, indemnification,
         cost recovery, compensation or injunctive relief.

                  "ENVIRONMENTAL LAW" means any Federal, state, local or foreign
         statute, law, ordinance, rule, regulation, code, order, writ, judgment,
         injunction, decree or judicial or agency interpretation, policy or
         guidance relating to pollution or protection of the environment,
         health, safety or natural resources, including, without limitation,
         those relating to the use, handling, transportation, treatment,
         storage, disposal, release or discharge of Hazardous Materials.

                  "ENVIRONMENTAL PERMIT" means any permit, approval,
         identification number, license or other authorization required under
         any Environmental Law.

                  "EQUITY INTERESTS" means, with respect to any Person, shares
         of capital stock of (or other ownership or profit interests in) such
         Person, warrants, options or other rights for the purchase or other
         acquisition from such Person of shares of capital stock of (or other
         ownership or profit interests in) such Person, securities convertible
         into or exchangeable for shares of capital stock of (or other ownership
         or profit interests in) such Person or warrants, rights or options for
         the purchase or other acquisition from such Person of such shares (or
         such other interests), and other ownership or profit interests in such
         Person (including, without limitation, partnership, member or trust
         interests therein), whether voting or nonvoting, and whether or not
         such shares, warrants, options, rights or other interests are
         authorized or otherwise existing on any date of determination.

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

                  "ERISA AFFILIATE" means any Person that for purposes of Title
         IV of ERISA is a member of the controlled group of any Loan Party, or
         under common control with any Loan Party, within the meaning of Section
         414 of the Internal Revenue Code.

                  "ERISA EVENT" means (a)(i) the occurrence of a reportable
         event, within the meaning of Section 4043 of ERISA, with respect to any
         Plan unless the 30-day notice requirement with respect to such event
         has been waived by the PBGC or (ii) the requirements of Section 4043(b)
         of ERISA apply with respect to a contributing sponsor, as defined in
         Section 4001(a)(13) of ERISA, of a Plan, and an event described in
         paragraph (9), (10), (11), (12) or (13) of Section 4043 (c) of ERISA is
         reasonably expected to occur with respect to such Plan within the
         following 30 days; (b) the application for a minimum funding waiver
         with respect to a Plan; (c) the provision by the administrator of any
         Plan of a notice of intent to terminate such Plan, pursuant to Section
         4041(a)(2) of ERISA (including any such notice with respect to a plan
         amendment referred to in Section 404l(e) of ERISA); (d) the cessation
         of operations at a facility of any Loan Party or any ERISA Affiliate in
         the circumstances described in Section 4062(e) of ERISA; (e) the
         withdrawal by any Loan Party or any ERISA Affiliate from a Multiple
         Employer Plan during a

                                       10

<PAGE>

         plan year for which it was a substantial employer, as defined in
         Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a
         lien under Section 302(f) of ERISA shall have been met with respect to
         any Plan; (g) the adoption of an amendment to a Plan requiring the
         provision of security to such Plan pursuant to Section 307 of ERISA; or
         (h) the institution by the PBGC of proceedings to terminate a Plan
         pursuant to Section 4042 of ERISA, or the occurrence of any event or
         condition described in Section 4042 of ERISA that constitutes grounds
         for the termination of, or the appointment of a trustee to administer,
         such Plan.

                  "EUROCURRENCY LIABILITIES" has the meaning specified in
         Regulation D of the Board of Governors of the Federal Reserve System,
         as in effect from time to time.

                  "EURODOLLAR LENDING OFFICE" means, with respect to any Lender
         Party, the office of such Lender Party specified as its "Eurodollar
         Lending Office" opposite its name on Schedule I hereto or in the
         Assignment and Acceptance pursuant to which it became a Lender Party
         (or, if no such office is specified, its Domestic Lending Office), or
         such other office of such Lender Party as such Lender Party may from
         time to time specify to the Borrower and the Administrative Agent.

                  "EURODOLLAR RATE" means, for any Interest Period for all
         Eurodollar Rate Advances comprising part of the same Borrowing, an
         interest rate per annum equal to the rate per annum obtained by
         dividing (a) the rate per annum (rounded upward, if necessary, to the
         nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor
         page) as the London interbank offered rate for deposits in U.S. Dollars
         at 1:00 P.M. (London time) two Business Days before the first day of
         such Interest Period for a period equal to such Interest Period or, if
         for any reason such rate is not available, the average (rounded upward,
         if necessary, to the nearest 1/100 of 1% , if such average is not such
         a multiple) of the rate per annum at which deposits in U.S. Dollars are
         offered by the principal office of each of the Reference Banks in
         London, England to prime banks in the London interbank market at 1:00
         P.M. (London time) two Business Days before the first day of such
         Interest Period in an amount substantially equal to such Reference
         Bank's Eurodollar Rate Advance comprising part of such Borrowing to be
         outstanding during such Interest Period (or, if such Reference Bank
         shall not have such a Eurodollar Rate Advance, U.S.$1,000,000) and for
         a period equal to such Interest Period by (b) a percentage equal to
         100% minus the Eurodollar Rate Reserve Percentage for such Interest
         Period.

                  "EURODOLLAR RATE ADVANCE" means an Advance that bears interest
         as provided in Section 2.07(a)(ii).

                  "EURODOLLAR RATE RESERVE PERCENTAGE" means, for any Interest
         Period for all Eurodollar Rate Advances comprising part of the same
         Borrowing, the reserve percentage applicable two Business Days before
         the first day of such Interest Period under regulations issued from
         time to time by the Board of Governors of the Federal Reserve System
         (or any successor) for determining the maximum reserve requirement
         (including, without limitation, any emergency, supplemental or other
         marginal reserve requirement) for a member bank of the Federal Reserve
         System in New York City with respect to liabilities or assets
         consisting of or including Eurocurrency Liabilities (or with respect to
         any other category of liabilities that includes deposits by reference
         to which the interest rate on Eurodollar Rate Advances is determined)
         having a term equal to such Interest Period.

                  "EVENTS OF DEFAULT" has the meaning specified in Section 6.01.

                  "EXISTING DEBT" means Debt of each Loan Party and its
         Subsidiaries outstanding immediately before giving effect to the
         Recapitalization.

                                       11

<PAGE>

                  "EXCLUDED SUBSIDIARY" at any time means any direct or indirect
         Subsidiary of the Borrower that is unable to guaranty the Obligations
         of the Loan Parties under the Loan Documents at such time because it is
         party to one or more Excluded Subsidiary Agreements that prohibit such
         Excluded Subsidiary from entering into the Guaranty set forth in
         Article VII or a Guaranty Supplement.

                  "EXCLUDED SUBSIDIARY AGREEMENT" for each Excluded Subsidiary
         means any agreement set forth opposite the name of such Excluded
         Subsidiary on Schedule 4.01(x) hereto and any agreement pursuant to
         which such Excluded Subsidiary incurs Refinancing Debt with regard to
         the Debt, if any, incurred pursuant to such Excluded Subsidiary
         Agreement.

                  "EXTENSION DATE" has the meaning specified in Section 2.16.

                  "FACILITY" means the Revolving Credit Facility or the Letter
         of Credit Facility.

                  "FACILITY EXPOSURE" means, at any date of determination, the
         sum of the aggregate principal amount of all outstanding Advances and
         the Available Amount under all outstanding Letters of Credit.

                  "FACILITY FEE" has the meaning specified in Section 2.08(a).

                  "FEDERAL FUNDS RATE" means, for any period, a fluctuating
         interest rate per annum equal for each day during such period to the
         weighted average of the rates on overnight Federal funds transactions
         with members of the Federal Reserve System arranged by Federal funds
         brokers, as published for such day (or, if such day is not a Business
         Day, for the next preceding Business Day) by the Federal Reserve Bank
         of New York, or, if such rate is not so published for any day that is a
         Business Day, the average of the quotations for such day for such
         transactions received by the Administrative Agent from three Federal
         funds brokers of recognized standing selected by it.

                  "FEE LETTER" means the fee letter dated as of May 19, 2003
         among the Borrower, CNAI and Citigroup.

                  "FISCAL YEAR" means a fiscal year of the Parent Guarantor and
         its Consolidated Subsidiaries ending on December 31 in any calendar
         year.

                  "FIXED CHARGE COVERAGE RATIO" means, at any date of
         determination, the ratio of (a) Adjusted EBITDA, divided by (b) the sum
         of (i) interest payable on, and amortization of debt discount in
         respect of, all Debt for Borrowed Money plus (ii) principal amounts of
         all Debt for Borrowed Money payable plus (iii) all dividends payable on
         any Preferred Interests, in each case, of or by the Parent Guarantor
         and its Subsidiaries for the consecutive four fiscal quarters of the
         Parent Guarantor most recently ended for which financial statements are
         required to be delivered to the Lender Parties pursuant to Section
         5.03(b) or (c), as the case may be.

                  "FUND AFFILIATE" means, with respect to any Lender that is a
         fund that invests in bank loans, any other fund that invests in bank
         loans and is advised or managed by the same investment advisor as such
         Lender or by an Affiliate of such investment advisor.

                  "FUNDS FROM OPERATIONS" means net income (computed in
         accordance with GAAP), excluding gains (or losses) from sales of
         property plus depreciation and amortization, and after

                                       12

<PAGE>

         adjustments for unconsolidated Joint Ventures. Adjustments for
         unconsolidated Joint Ventures will be calculated to reflect funds from
         operations on the same basis.

                  "GAAP" has the meaning specified in Section 1.03.

                  "GAS COMPANY TOWER" means that Real Property located at 555
         West Fifth Street, Los Angeles, California 90013.

                  "GENERAL PARTNER" has the meaning specified in the recital of
         parties to this Agreement.

                  "GUARANTEED OBLIGATIONS" has the meaning specified in Section
         7.01.

                  "GUARANTORS" means the Parent Guarantor and the Subsidiary
         Guarantors.

                  "GUARANTY" means the Guaranty by the Guarantors pursuant to
         Article VII, together with any and all Guaranty Supplements required to
         be delivered pursuant to Section 5.01(j).

                  "GUARANTY SUPPLEMENT" means a supplement entered into by an
         Additional Guarantor in substantially the form of Exhibit C hereto.

                  "HAZARDOUS MATERIALS" means (a) petroleum or petroleum
         products, by-products or breakdown products, radioactive materials,
         asbestos-containing materials, polychlorinated biphenyls and radon gas
         and (b) any other chemicals, materials or substances designated,
         classified or regulated as hazardous or toxic or as a pollutant or
         contaminant under any Environmental Law.

                  "HEDGE AGREEMENTS" means interest rate swap, cap or collar
         agreements, interest rate future or option contracts, currency swap
         agreements, currency future or option contracts and other hedging
         agreements.

                  "HEDGE BANK" means any Lender Party or an Affiliate of a
         Lender Party in its capacity as a party to a Secured Hedge Agreement.

                  "HOTEL REAL PROPERTY" means Real Property that operates or is
         intended to be operated as a hotel, motel or other lodging for
         transient use of rooms or is a structure from which a hotel, motel or
         other lodging for transient use of rooms is operated or intended to be
         operated.

                  "IMPLIED DEBT SERVICE COVERAGE RATIO" means, at any date of
         determination, the ratio of (a) the aggregate Adjusted Net Operating
         Income for all Eligible Real Estate Assets for the consecutive four
         fiscal quarters of the Parent Guarantor most recently ended for which
         financial statements are required to be delivered to the Lender Parties
         pursuant to Section 5.03(b) or (c), as the case may be, to (b) the
         greater of (i) the actual interest expense for such fiscal period and
         (ii) the interest (including capitalized interest) and principal
         amortization payments that would be required to be paid for such fiscal
         period on an assumed Debt in a aggregate principal amount equal to the
         sum of all outstanding Advances plus the Available Amount of all
         Letters of Credit that fully amortizes on a level payment 25-year
         amortization schedule and assuming an interest rate equal to the yield
         to maturity of the then current ten-year U.S. Treasury obligations plus
         1.75%.

                  "INDEMNIFIED COSTS" has the meaning specified in Section
         8.05(a).

                                       13

<PAGE>

                  "INDEMNIFIED PARTY" has the meaning specified in Section
         7.06(a).

                  "INFORMATION MEMORANDUM" means the information memorandum
         dated May 2003 used by the Arrangers in connection with the syndication
         of the Commitments.

                  "INITIAL EXTENSION OF CREDIT" means the earlier to occur of
         the initial Borrowing and the initial issuance of a Letter of Credit
         hereunder.

                  "INITIAL ISSUING BANK" has the meaning specified in the
         recital of parties to this Agreement.

                  "INITIAL LENDERS" has the meaning specified in the recital of
         parties to this Agreement.

                  "INSUFFICIENCY" means, with respect to any Plan, the amount,
         if any, of its unfunded benefit liabilities, as defined in Section
         4001(a)(18) of ERISA.

                  "INTEREST COVERAGE RATIO" means, at any date of determination,
         the ratio of (a) Adjusted EBITDA to (b) interest (including capitalized
         interest) payable on, and amortization of debt discount in respect of,
         all Debt for Borrowed Money, in each case, of or by the Borrower and
         its Subsidiaries and Joint Ventures for the consecutive four fiscal
         quarters of the Parent Guarantor most recently ended for which
         financial statements are required to be delivered to the Lender Parties
         pursuant to Section 5.03(b) or (c), as the case may be.

                  "INTEREST PERIOD" means, for each Eurodollar Rate Advance
         comprising part of the same Borrowing, the period commencing on the
         date of such Eurodollar Rate Advance or the date of the Conversion of
         any Base Rate Advance into such Eurodollar Rate Advance, and ending on
         the last day of the period selected by the Borrower pursuant to the
         provisions below and, thereafter, each subsequent period commencing on
         the last day of the immediately preceding Interest Period and ending on
         the last day of the period selected by the Borrower pursuant to the
         provisions below. The duration of each such Interest Period shall be
         one, two, three or six months, as the Borrower may, upon notice
         received by the Administrative Agent not later than 11:00 A.M. (New
         York City time) on the third Business Day prior to the first day of
         such Interest Period, select; provided, however, that:

                           (a)      the Borrower may not select any Interest
                  Period with respect to any Eurodollar Rate Advance that ends
                  after the Termination Date;

                           (b)      Interest Periods commencing on the same date
                  for Eurodollar Rate Advances comprising part of the same
                  Borrowing shall be of the same duration;

                           (c)      whenever the last day of any Interest Period
                  would otherwise occur on a day other than a Business Day, the
                  last day of such Interest Period shall be extended to occur on
                  the next succeeding Business Day; provided, however, that, if
                  such extension would cause the last day of such Interest
                  Period to occur in the next following calendar month, the last
                  day of such Interest Period shall occur on the next preceding
                  Business Day; and

                           (d)      whenever the first day of any Interest
                  Period occurs on a day of an initial calendar month for which
                  there is no numerically corresponding day in the calendar
                  month that succeeds such initial calendar month by the number
                  of months equal to the

                                       14

<PAGE>

                  number of months in such Interest Period, such Interest Period
                  shall end on the last Business Day of such succeeding calendar
                  month.

                  "INTERNAL REVENUE CODE" means the Internal Revenue Code of
         1986, as amended from time to time, and the regulations promulgated and
         rulings issued thereunder.

                  "INVESTMENT" in any Person means any loan or advance to such
         Person, any purchase or other acquisition of any Equity Interests or
         Debt or the assets comprising a division or business unit or a
         substantial part or all of the business of such Person, any capital
         contribution to such Person or any other direct or indirect investment
         in such Person, including, without limitation, any acquisition by way
         of a merger or consolidation and any arrangement pursuant to which the
         investor incurs Debt of the types referred to in clause (i) or (j) of
         the definition of "DEBT" in respect of such Person.

                  "IPO" means the initial public offering of common stock in the
         General Partner and its registration as a public company with the
         Securities and Exchange Commission.

                  "ISSUING BANK" means the Initial Issuing Bank and any other
         Lender approved as an Issuing Bank by the Administrative Agent and the
         Borrower and any Eligible Assignee to which a Letter of Credit
         Commitment hereunder has been assigned pursuant to Section 9.07 so long
         as each such Lender or each such Eligible Assignee expressly agrees to
         perform in accordance with their terms all of the obligations that by
         the terms of this Agreement are required to be performed by it as an
         Issuing Bank and notifies the Administrative Agent of its Applicable
         Lending Office and the amount of its Letter of Credit Commitment (which
         information shall be recorded by the Administrative Agent in the
         Register) for so long as such Initial Issuing Bank, Lender or Eligible
         Assignee, as the case may be, shall have a Letter of Credit Commitment.

                  "JOINT VENTURE" means any joint venture (a) in which the
         Parent Guarantor or any of its Subsidiaries holds any Equity Interest,
         (b) that is not a Subsidiary of the Parent Guarantor or any of its
         Subsidiaries and (c) the accounts of which would not appear on the
         Consolidated financial statements of the Parent Guarantor.

                  "JV PRO RATA SHARE" means, with respect to any Joint Venture
         at any time, the fraction, expressed as a percentage, obtained by
         dividing (a) the total value of all Equity Interests in such Joint
         Venture held by the Parent Guarantor and any of its Subsidiaries by (b)
         the total value of all outstanding Equity Interests in such Joint
         Venture at such time.

                  "KPMG TOWER" means that Real Property located at 355 South
         Grand Avenue, Los Angeles, California 90071.

                  "L/C CASH COLLATERAL ACCOUNT" means the account of the
         Borrower maintained with the Administrative Agent, in the name of the
         Administrative Agent and under the sole control and dominion of the
         Administrative Agent and subject to the terms of this Agreement.

                  "L/C RELATED DOCUMENTS" has the meaning specified in Section
         2.04(b)(ii)(A).

                  "LENDER PARTY" means any Lender or any Issuing Bank.

                  "LENDERS" means the Initial Lenders and each Person that shall
         become a Lender hereunder pursuant to Section 9.07 for so long as such
         Initial Lender or Person, as the case may be, shall be a party to this
         Agreement.

                                       15

<PAGE>

                  "LETTER OF CREDIT ADVANCE" means an advance made by any
         Issuing Bank or any Lender pursuant to Section 2.03(c).

                  "LETTER OF CREDIT AGREEMENT" has the meaning specified in
         Section 2.03(a).

                  "LETTER OF CREDIT COMMITMENT" means, with respect to any
         Issuing Bank at any time, the amount set forth opposite such Issuing
         Bank's name on Schedule I hereto under the caption "Letter of Credit
         Commitment" or, if such Issuing Bank has entered into one or more
         Assignment and Acceptances, set forth for such Issuing Bank in the
         Register maintained by the Administrative Agent pursuant to Section
         9.07(d) as such Issuing Bank's "Letter of Credit Commitment", as such
         amount may be reduced at or prior to such time pursuant to Section
         2.05.

                  "LETTER OF CREDIT FACILITY" means, at any time, an amount
         equal to the lesser of (a) the aggregate amount of the Issuing Banks'
         Letter of Credit Commitments at such time, and (b) $25,000,000, as such
         amount may be reduced at or prior to such time pursuant to Section
         2.05.

                  "LETTERS OF CREDIT" has the meaning specified in Section
         2.01(b).

                  "LEVERAGE RATIO" means, at any date of determination, the
         ratio, expressed as a percentage, of (a) the sum of Consolidated Debt
         of the Parent Guarantor and its Subsidiaries plus the applicable JV Pro
         Rata Share of the Consolidated Debt of each Joint Venture to (b) Total
         Asset Value, in each case as at the end of the most recently ended
         fiscal quarter of the Parent Guarantor for which financial statements
         are required to be delivered to the Lender Parties pursuant to Section
         5.03(b) or (c), as the case may be.

                  "LIEN" means any lien, security interest or other charge or
         encumbrance of any kind, or any other type of preferential arrangement,
         including, without limitation, the lien or retained security title of a
         conditional vendor and any easement, right of way or other encumbrance
         on title to real property.

                  "LOAN DOCUMENTS" means (a) this Agreement, (b) the Notes, (c)
         the Fee Letter, (d) each Letter of Credit Agreement, (e) each Guaranty
         Supplement, (f) the Collateral Documents and (g) each Secured Hedge
         Agreement, in each case as amended.

                  "LOAN PARTIES" means the Borrower and the Guarantors.

                  "LOAN VALUE" means the sum of (a) with respect to each
         Eligible Real Estate Asset that is Non-Hotel Real Property, the amount
         determined by the Administrative Agent equal to 60% of the Borrowing
         Base Asset Value of such Eligible Real Estate Asset and (b) with
         respect to each Eligible Real Estate Asset that is Hotel Real Property,
         the amount determined by the Administrative Agent equal to 55% of the
         Borrowing Base Asset Value of such Eligible Real Estate Asset.

                  "MARKETABLE SECURITIES" means any of the following, to the
         extent owned by the Borrower or any of its Subsidiaries free and clear
         of all Liens and having a maturity of not greater than 360 days from
         the date of acquisition thereof: (a) readily marketable direct
         obligations of the Government of the United States or any agency or
         instrumentality thereof or obligations unconditionally guaranteed by
         the full faith and credit of the Government of the United States, (b)
         insured certificates of deposit of or time deposits with any commercial
         bank that is a Lender or a member of the Federal Reserve System, issues
         (or the parent of which issues) commercial paper rated as described in
         clause (c), is organized under the laws of the United States or any

                                       16

<PAGE>

         State thereof and has combined capital and surplus of at least
         $1,000,000,000 or (c) commercial paper in an aggregate amount of no
         more than $50,000,000 per issuer outstanding at any time, issued by any
         corporation organized under the laws of any State of the United States
         and rated at least "Prime-1" (or the then equivalent grade) by Moody's
         or "A-l" (or the then equivalent grade) by S&P.

                  "MARGIN STOCK" has the meaning specified in Regulation U.

                  "MATERIAL ADVERSE CHANGE" means any material adverse change in
         the business, condition (financial or otherwise) or results of
         operations of the Loan Parties and their Subsidiaries, taken as a
         whole.

                  "MATERIAL ADVERSE EFFECT" means a material adverse effect on
         (a) the business, condition (financial or otherwise) or results of
         operations of the Loan Parties and their Subsidiaries, taken as a
         whole, (b) the rights and remedies of any Agent or any Lender Party
         under any Loan Document, (c) the ability of any Loan Party to perform
         its Obligations under any Loan Document to which it is or is to be a
         party or (d) the value of the Collateral.

                  "MATERIAL CONTRACT" means, with respect to any Loan Party,
         each contract to which such Loan Party is a party involving aggregate
         consideration payable to or by such Loan Party in an amount of
         $25,000,000 or more per annum or otherwise material to the business,
         condition (financial or otherwise), operations, performance, properties
         or prospects of such Loan Party.

                  "MATERIAL DEBT" has the meaning specified in Section 6.01(e).

                  "MOODY'S" means Moody's Investors Services, Inc. and any
         successor thereto.

                  "MORTGAGE POLICIES" has the meaning specified in Section
         3.01(a)(iii)(B).

                  "MORTGAGES" has the meaning specified in Section 3.01(a)(iii).

                  "MULTIEMPLOYER PLAN" means a multiemployer plan, as defined in
         Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA
         Affiliate is making or accruing an obligation to make contributions, or
         has within any of the preceding five plan years made or accrued an
         obligation to make contributions.

                  "MULTIPLE EMPLOYER PLAN" means a single employer plan, as
         defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
         employees of any Loan Party or any ERISA Affiliate and at least one
         Person other than the Loan Parties and the ERISA Affiliates or (b) was
         so maintained and in respect of which any Loan Party or any ERISA
         Affiliate could have liability under Section 4064 or 4069 of ERISA in
         the event such plan has been or were to be terminated.

                  "NET OPERATING INCOME" means, with respect to any of the
         Eligible Real Estate Assets, the total rental and other income from the
         operation of the Eligible Real Estate Assets, after deducting all
         expenses and other proper charges incurred by the Borrower in
         connection with the operation and maintenance of such Eligible Real
         Estate Assets during such fiscal period, including, without limitation,
         management fees, real estate taxes and bad debt expenses, but before
         payment or provision for debt service charges, income taxes and
         depreciation, amortization and other non-cash expenses, in each case
         for the consecutive four fiscal quarters of the Parent Guarantor most
         recently ended for which financial statements are required to be

                                       17

<PAGE>

         delivered to the Lender Parties pursuant to Section 5.03(b) or (c), as
         the case may be, all as determined in accordance with GAAP, provided
         that there shall be no rent leveling adjustments made when computing
         Net Operating Income.

                  "NON-CBD OFFICE REAL PROPERTY" means Real Property located
         outside of any metropolitan district with a high concentration of
         office buildings and other structures from which commercial businesses
         operate and that is an office building or a structure from which
         commercial businesses operate.

                  "NON-HOTEL REAL PROPERTY" means Real Property that is not
         Hotel Real Property.

                  "NON-OFFICE REAL PROPERTY" means Real Property wherever
         located that is not an office building or a structure from which
         commercial businesses operate.

                  "NON-RECOURSE DEBT" means Debt for Borrowed Money with respect
         to which recourse for payment is limited to (a) any building(s) or
         parcel(s) of Real Property or any related assets encumbered by a Lien
         securing such Debt for Borrowed Money and/or (b) the general credit of
         any Property-Level Subsidiary and/or the Equity Interests therein, it
         being understood that the instruments governing such Debt may include
         customary carve-outs to such limited recourse such as, for example,
         personal recourse of the Parent Guarantor or any Subsidiary of the
         Parent Guarantor for fraud, misrepresentation, misapplication of cash,
         waste, environmental claims and liabilities and other circumstances
         customarily excluded by lenders from exculpation provisions and/or
         included in separate indemnification agreements in non-recourse
         financings of real estate.

                  "NOTE" means a promissory note of the Borrower payable to the
         order of any Lender, in substantially the form of Exhibit A hereto,
         evidencing the aggregate indebtedness of the Borrower to such Lender
         resulting from the Revolving Credit Advances and Letter of Credit
         Advances made by such Lender.

                  "NOTICE" has the meaning specified in Section 9.02(c).

                  "NOTICE OF BORROWING" has the meaning specified in Section
         2.02(a).

                  "NOTICE OF ISSUANCE" has the meaning specified in Section
         2.03(a).

                  "NOTICE OF RENEWAL" has the meaning specified in Section
         2.01(b).

                  "NOTICE OF TERMINATION" has the meaning specified in Section
         2.01(b).

                  "NPL" means the National Priorities List under CERCLA.

                  "OBLIGATION" means, with respect to any Person, any payment,
         performance or other obligation of such Person of any kind, including,
         without limitation, any liability of such Person on any claim, whether
         or not the right of any creditor to payment in respect of such claim is
         reduced to judgment, liquidated, unliquidated, fixed, contingent,
         matured, disputed, undisputed, legal, equitable, secured or unsecured,
         and whether or not such claim is discharged, stayed or otherwise
         affected by any proceeding referred to in Section 6.01(f). Without
         limiting the generality of the foregoing, the Obligations of any Loan
         Party under the Loan Documents include (a) the obligation to pay
         principal, interest, Letter of Credit commissions, charges, expenses,
         fees, attorneys' fees and disbursements, indemnities and other amounts
         payable by such Loan Party under any Loan Document and (b) the
         obligation of such Loan Party to reimburse any amount in

                                       18

<PAGE>

         respect of any of the foregoing that any Lender Party, in its sole
         discretion, may elect to pay or advance on behalf of such Loan Party.

                  "OECD" means the Organization for Economic Cooperation and
         Development.

                  "OTHER TAXES" has the meaning specified in Section 2.12(b).

                  "PARENT GUARANTOR" has the meaning specified in the recital of
         parties to this Agreement.

                  "PBGC" means the Pension Benefit Guaranty Corporation (or any
         successor).

                  "PERMITTED LIENS" means such of the following as to which no
         enforcement, collection, execution, levy or foreclosure proceeding
         shall have been commenced: (a) Liens for taxes, assessments and
         governmental charges or levies not yet delinquent; (b) Liens imposed by
         law, such as materialmen's, mechanics', carriers', workmen's and
         repairmen's Liens and other similar Liens arising in the ordinary
         course of business securing obligations that (i) are not overdue for a
         period of more than 30 days and (ii) individually or together with all
         other Permitted Liens outstanding on any date of determination do not
         materially adversely affect the use of the property to which they
         relate; (c) pledges or deposits to secure obligations under workers'
         compensation laws or similar legislation or to secure public or
         statutory obligations; (d) easements, rights of way and other
         encumbrances on title to real property that do not render title to the
         property encumbered thereby unmarketable or materially adversely affect
         the use of such property for its present purposes; (e) any Permitted
         Encumbrances (as defined in the Mortgages); and (f) Tenancy Leases.

                  "PERSON" means an individual, partnership, corporation
         (including a business trust), limited liability company, joint stock
         company, trust, unincorporated association, joint venture or other
         entity, or a government or any political subdivision or agency thereof.

                  "PLAN" means a Single Employer Plan or a Multiple Employer
         Plan.

                  "PLATFORM" has the meaning specified in Section 9.02(b).

                  "POST PETITION INTEREST" has the meaning specified in Section
         7.07(c).

                  "PREFERRED INTERESTS" means, with respect to any Person,
         Equity Interests issued by such Person that are entitled to a
         preference or priority over any other Equity Interests issued by such
         Person upon any distribution of such Person's property and assets,
         whether by dividend or upon liquidation.

                  "PROPERTY-LEVEL SUBSIDIARY" means any Subsidiary of the
         Borrower that holds a direct fee or leasehold interest in any single
         building (or group of related buildings) or parcel (or group of related
         parcels) of Real Property and related assets and not in any other
         building or parcel of Real Property.

                  "PROPOSED BORROWING BASE PROPERTY" has the meaning specified
         in Section 5.01(j)(iii).

                  "PRO RATA SHARE" of any amount means, with respect to any
         Lender at any time, the product of such amount times a fraction the
         numerator of which is the amount of such Lender's Revolving Credit
         Commitment at such time (or, if the Commitments shall have been
         terminated pursuant to Section 2.05 or 6.01, such Lender's Revolving
         Credit Commitment as in effect

                                       19

<PAGE>

         immediately prior to such termination) and the denominator of which is
         the Revolving Credit Facility at such time (or, if the Commitments
         shall have been terminated pursuant to Section 2.05 or 6.01, the
         Revolving Credit Facility as in effect immediately prior to such
         termination).

                  "REAL PROPERTY" means all right, title and interest of the
         Borrower and each of its Subsidiaries in and to any land and any
         improvements located thereon, together with all equipment, furniture,
         materials, supplies and personal property in which such Person has an
         interest now or hereafter located on or used in connection with such
         land and improvements, and all appurtenances, additions, improvements,
         renewals, substitutions and replacements thereof now or hereafter
         acquired by such Person.

                  "RECAPITALIZATION" means the acquisition by the Borrower of
         full or partial interests in a portfolio of commercial real estate
         properties from Affiliates of Maguire Partners Development, Ltd. and
         other Persons in exchange for consideration of cash, common stock of
         the Parent Guarantor, units and assumption of debt and other
         obligations, all as more fully described in the Parent Guarantor's Form
         S-l1 Registration Statement filed with the Securities and Exchange
         Commission in connection with the IPO.

                  "REDEEMABLE" means, with respect to any Equity Interest, any
         Debt or any other right or Obligation, any such Equity Interest, Debt,
         right or Obligation that (a) the issuer has undertaken to redeem at a
         fixed or determinable date or dates, whether by operation of a sinking
         fund or otherwise, or upon the occurrence of a condition not solely
         within the control of the issuer or (b) is redeemable at the option of
         the holder.

                  "REFERENCE BANKS" means Citibank, N.A. and Wachovia Bank, NA.

                  "REFINANCING DEBT" means, with respect to any Debt, any Debt
         extending the maturity of, or refunding or refinancing, in whole or in
         part, such Debt, provided that (i) the terms of any Refinancing Debt,
         and of any agreement entered into and of any instrument issued in
         connection therewith, are otherwise permitted by the Loan Documents,
         (ii) the principal amount of such Debt shall not be increased above the
         principal amount thereof outstanding immediately prior to such
         extension, refunding or refinancing, and the direct and contingent
         obligors therefor shall not be changed, as a result of or in connection
         with such extension, refunding or refinancing, (iii) the terms relating
         to principal amount, amortization, maturity, collateral (if any) and
         subordination (if any), and other material terms taken as a whole, of
         any such Refinancing Debt, and of any agreement entered into and of any
         instrument issued in connection therewith, are no less favorable in any
         material respect to the Loan Parties or the Lender Parties than the
         terms of any agreement or instrument governing the Debt being extended,
         refunded or refinanced and the interest rate applicable to any such
         Refinancing Debt does not exceed the then applicable market interest
         rate, and (iv) such Refinancing Debt shall be issued pursuant to the
         same type of instrument or agreement and the same form of financing as
         that evidencing the Debt.

                  "REGISTER" has the meaning specified in Section 9.07(d).

                  "REGULATION U" means Regulation U of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

                  "REIT" means a Person that is qualified to be treated for tax
         purposes as a real estate investment trust under Sections 856-860 of
         the Internal Revenue Code.

                                       20

<PAGE>

                  "REQUIRED LENDERS" means, at any time, Lenders owed or holding
         greater than 66 2/3% of the sum of (a) the aggregate principal amount
         of the Advances outstanding at such time, (b) the aggregate Available
         Amount of all Letters of Credit outstanding at such time and (c) the
         aggregate Unused Revolving Credit Commitments at such time. For
         purposes of this definition, the aggregate principal amount of Letter
         of Credit Advances owing to any Issuing Bank and the Available Amount
         of each Letter of Credit shall be considered to be owed to the
         Revolving Lenders ratably in accordance with their respective Revolving
         Credit Commitments.

                  "RESPONSIBLE OFFICER" means any officer of, or any officer of
         any general partner or managing member of, any Loan Party or any of its
         Subsidiaries.

                  "REVOLVING CREDIT ADVANCE" has the meaning specified in
         Section 2.01(a).

                  "REVOLVING CREDIT COMMITMENT" means, (a) with respect to any
         Lender at any time, the amount set forth opposite such Lender's name on
         Schedule I hereto under the caption "Revolving Credit Commitment" or
         (b) if such Lender has entered into one or more Assignment and
         Acceptances, set forth for such Lender in the Register maintained by
         the Administrative Agent pursuant to Section 9.07(d) as such Lender's
         "Revolving Credit Commitment", as such amount may be reduced at or
         prior to such time pursuant to Section 2.05.

                  "REVOLVING CREDIT FACILITY" means, at any time, the aggregate
         amount of the Lenders' Revolving Credit Commitments at such time.

                  "S&P" means Standard & Poor's Ratings Group, a division of The
         McGraw-Hill Companies, Inc. and any successor thereto.

                  "SARBANES-OXLEY" means the Sarbanes-Oxley Act of 2002, as
         amended.

                  "SECURED HEDGE AGREEMENT" means any Hedge Agreement required
         or permitted under Article V that is entered into by and between any
         Loan Party and any Hedge Bank and that is secured by the Collateral
         Documents.

                  "SECURED OBLIGATIONS" has the meaning specified in Section 2
         of the Security Agreements.

                  "SECURED PARTIES" means the Agents, the Lender Parties and the
         Hedge Banks.

                  "SECURITY AGREEMENTS" have the meaning specified in Section
         3.01(a)(ii).

                  "SINGLE EMPLOYER PLAN" means a single employer plan, as
         defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
         employees of any Loan Party or any ERISA Affiliate and no Person other
         than the Loan Parties and the ERISA Affiliates or (b) was so maintained
         and in respect of which any Loan Party or any ERISA Affiliate could
         have liability under Section 4069 of ERISA in the event such plan has
         been or were to be terminated.

                  "SOLVENT" means, with respect to any Person on a particular
         date, that on such date (a) the fair value of the property of such
         Person, on a going-concern basis, is greater than the total amount of
         liabilities, including, without limitation, contingent liabilities, of
         such Person, (b) the present fair salable value of the assets of such
         Person, on a going-concern basis, is not less than the amount that will
         be required to pay the probable liability of such Person on its debts
         as they become absolute and matured, (c) such Person does not intend
         to, and does not believe that it will,

                                       21

<PAGE>

         incur debts or liabilities beyond such Person's ability to pay such
         debts and liabilities as they mature and (d) such Person is not engaged
         in business or a transaction, and is not about to engage in business or
         a transaction, for which such Person's property would constitute an
         unreasonably small capital. The amount of contingent liabilities at any
         time shall be computed as the amount that, in the light of all the
         facts and circumstances existing at such time (including, without
         limitation, after taking into account appropriate discount factors for
         the present value of future contingent liabilities), represents the
         amount that can reasonably be expected to become an actual or matured
         liability.

                  "STANDBY LETTER OF CREDIT" means any Letter of Credit issued
         under the Letter of Credit Facility, other than a Trade Letter of
         Credit.

                  "SUBORDINATED OBLIGATIONS" has the meaning specified in
         Section 7.07(a).

                  "SUBSIDIARY" of any Person means any corporation, partnership,
         joint venture, limited liability company, trust or estate of which (or
         in which) more than 50% of (a) the issued and outstanding capital stock
         having ordinary voting power to elect a majority of the Board of
         Directors of such corporation (irrespective of whether at the time
         capital stock of any other class or classes of such corporation shall
         or might have voting power upon the occurrence of any contingency), (b)
         the interest in the capital or profits of such partnership, joint
         venture or limited liability company or (c) the beneficial interest in
         such trust or estate, in each case, is at the time directly or
         indirectly owned or controlled by such Person, by such Person and one
         or more of its other Subsidiaries or by one or more of such Person's
         other Subsidiaries.

                  "SUBSIDIARY GUARANTOR" has the meaning specified in the
         recital of parties to this Agreement.

                  "SURVIVING DEBT" means Debt of each Loan Party and its
         Subsidiaries outstanding immediately before and after giving effect to
         the Recapitalization.

                  "TAXES" has the meaning specified in Section 2.12(a).

                  "TENANCY LEASES " means operating leases, subleases, licenses,
         occupancy agreements and rights-of-use entered into by the Borrower or
         any of its Subsidiaries in its capacity as a lessor or a similar
         capacity in the ordinary course of business that do not materially and
         adversely affect the use of the Real Property encumbered thereby for
         its intended purpose.

                  "TERMINATION DATE" means the earlier of (a) the third
         anniversary of the Closing Date, subject to the extension thereof
         pursuant to Section 2.16, and (b) the date of termination in whole of
         the Revolving Credit Commitments and the Letter of Credit Commitments
         pursuant to Section 2.05 or 6.01.

                  "TOTAL ASSET VALUE" means, on any date of determination, the
         sum of the Asset Values for all Real Property at such date.

                  "TOTAL BORROWING BASE ASSET Value" means, on any date of
         determination, the sum of the Borrowing Base Asset Values for all
         Eligible Real Estate Assets.

                  "TRADE LETTER OF CREDIT" means any Letter of Credit that is
         issued under the Letter of Credit Facility for the benefit of a
         supplier of inventory to the Borrower or any of its Subsidiaries to
         effect payment for such Inventory.

                                       22

<PAGE>

                  "TRANSFER" has the meaning specified in Section 5.02(e).

                  "TRS SUBSIDIARIES" means Maguire Properties Services, Inc.,
         Maguire Properties-Solana Services, L.P., MP-Solana Services GP, LLC
         and MP-Solana Services LP, LLC.

                  "TYPE" refers to the distinction between Advances bearing
         interest at the Base Rate and Advances bearing interest at the
         Eurodollar Rate.

                  "UNUSED FEE" has the meaning specified in Section 2.08(b).

                  "UNUSED REVOLVING CREDIT COMMITMENT" means, with respect to
         any Lender at any time, (a) such Lender's Revolving Credit Commitment
         at such time minus (b) the sum of (i) the aggregate principal amount of
         all Revolving Credit Advances and Letter of Credit Advances made by
         such Lender (in its capacity as a Lender) and outstanding at such time
         plus (ii) such Lender's Pro Rata Share of (A) the aggregate Available
         Amount of all Letters of Credit outstanding at such time and (B) the
         aggregate principal amount of all Letter of Credit Advances made by the
         Issuing Banks pursuant to Section 2.03(c) and outstanding at such time.

                  "US BANK TOWER" means that Real Property located at 633 West
         Fifth Street, Los Angeles, California 90071.

                  "VOTING INTERESTS" means shares of capital stock issued by a
         corporation, or equivalent Equity Interests in any other Person, the
         holders of which are ordinarily, in the absence of contingencies,
         entitled to vote for the election of directors (or persons performing
         similar functions) of such Person, even if the right so to vote has
         been suspended by the happening of such a contingency.

                  "WELFARE PLAN" means a welfare plan, as defined in Section
         3(1) of ERISA, that is maintained for employees of any Loan Party or in
         respect of which any Loan Party could have liability.

                  "WELLS FARGO TOWER" means that Real Property located at 333
         South Grand Avenue, Los Angeles, California 90071.

                  "WITHDRAWAL LIABILITY" has the meaning specified in Part I of
         Subtitle E of Title IV of ERISA.

                  SECTION 1.02. Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word "FROM"
means "from and including" and the words "TO" and "UNTIL" each mean "to but
excluding". References in the Loan Documents to any agreement or contract "AS
AMENDED" shall mean and be a reference to such agreement or contract as amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with its terms.

                  SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.0l(g) ("GAAP').

                                       23

<PAGE>

                                   ARTICLE II
           AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

                  SECTION 2.01. The Advances and the Letters of Credit. (a) The
Revolving Credit Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each a "REVOLVING CREDIT
ADVANCE") to the Borrower from time to time on any Business Day during the
period from the date hereof until the Termination Date in an amount for each
such Advance not to exceed such Lender's Unused Revolving Credit Commitment at
such time. Each Borrowing shall be in an aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof and shall consist of Revolving
Credit Advances made simultaneously by the Lenders ratably according to their
Revolving Credit Commitments. Within the limits of each Lender's Unused
Revolving Credit Commitment in effect from time to time and prior to the
Termination Date, the Borrower may borrow under this Section 2.01(a), prepay
pursuant to Section 2.06(a) and reborrow under this Section 2.01(a).

                  (b)      Letters of Credit. Each Issuing Bank severally
agrees, on the terms and conditions hereinafter set forth, to issue (or cause
its Affiliate that is a commercial bank to issue on its behalf) letters of
credit in substantially the form of Exhibit I hereto, or such other form
required by the Issuing Banks in their sole discretion (the "LETTERS OF
CREDIT"), for the account of the Borrower from time to time on any Business Day
during the period from the date hereof until 60 days before the Termination Date
in an aggregate Available Amount (i) for all Letters of Credit not to exceed at
any time the Letter of Credit Facility at such time, (ii) for all Letters of
Credit issued by such Issuing Bank not to exceed such Issuing Bank's Letter of
Credit Commitment at such time, and (iii) for each such Letter of Credit not to
exceed the Unused Revolving Credit Commitments of the Lenders at such time. No
Letter of Credit shall have an expiration date (including all rights of the
Borrower or the beneficiary to require renewal) later than the earlier of 60
days before the Termination Date and (A) in the case of a Standby Letter of
Credit one year after the date of issuance thereof, but may by its terms be
renewable annually upon notice (a "Notice of Renewal") given to the Issuing Bank
that issued such Standby Letter of Credit and the Administrative Agent on or
prior to any date for notice of renewal set forth in such Letter of Credit but
in any event at least three Business Days prior to the date of the proposed
renewal of such Standby Letter of Credit and upon fulfillment of the applicable
conditions set forth in Article III unless such Issuing Bank has notified the
Borrower (with a copy to the Administrative Agent) on or prior to the date for
notice of termination set forth in such Letter of Credit but in any event at
least 30 Business Days prior to the date of automatic renewal of its election
not to renew such Standby Letter of Credit (a "NOTICE OF TERMINATION") and (B)
in the case of a Trade Letter of Credit, 60 days after the date of issuance
thereof; provided, however, that the terms of each Standby Letter of Credit that
is automatically renewable annually shall (x) require the Issuing Bank that
issued such Standby Letter of Credit to give the beneficiary named in such
Standby Letter of Credit notice of any Notice of Termination, (y) permit such
beneficiary, upon receipt of such notice, to draw under such Standby Letter of
Credit prior to the date such Standby Letter of Credit otherwise would have been
automatically renewed and (z) not permit the expiration date (after giving
effect to any renewal) of such Standby Letter of Credit in any event to be
extended to a date later than 60 days before the Termination Date. If either a
Notice of Renewal is not given by the Borrower or a Notice of Termination is
given by the relevant Issuing Bank pursuant to the immediately preceding
sentence, such Standby Letter of Credit shall expire on the date on which it
otherwise would have been automatically renewed; provided, however, that even in
the absence of receipt of a Notice of Renewal the relevant Issuing Bank shall,
unless instructed to the contrary by the Administrative Agent or the Borrower,
deem that a Notice of Renewal had been timely delivered and in such case, a
Notice of Renewal shall be deemed to have been so delivered for all purposes
under this Agreement. Each Standby Letter of Credit shall contain a provision
authorizing the Issuing Bank that issued such Letter of Credit to deliver to the
beneficiary of such Letter of Credit, upon the occurrence and during the
continuance of an Event of Default, a notice (a "DEFAULT TERMINATION NOTICE")
terminating such Letter of Credit and giving such beneficiary 15 days to draw
such Letter of Credit. Within the limits of the Letter of Credit Facility,

                                       24

<PAGE>

and subject to the limits referred to above, the Borrower may request the
issuance of Letters of Credit under this Section 2.01(b), repay any Letter of
Credit Advances resulting from drawings thereunder pursuant to Section 2.03(c)
and request the issuance of additional Letters of Credit under this Section 2.0l
(b).

                  SECTION 2.02. Making the Advances. (a) Except as otherwise
provided in Section 2.03, each Borrowing shall be made on notice, given not
later than 2:00 P.M. (New York City time) on the third Business Day prior to the
date of the proposed Borrowing in the case of a Borrowing consisting of
Eurodollar Rate Advances, or not later than 11:00 A.M. (New York City time) on
the Business Day of the proposed Borrowing in the case of a Borrowing consisting
of Base Rate Advances, by the Borrower to the Administrative Agent, which shall
give to each Lender prompt notice thereof by telex or telecopier. Each such
notice of a Borrowing (a "NOTICE OF BORROWING") shall be by telephone, confirmed
immediately in writing, or telex or telecopier, in substantially the form of
Exhibit B hereto, specifying therein the requested (i) date of such Borrowing,
(ii) Type of Advances comprising such Borrowing, (iii) aggregate amount of such
Borrowing and (iv) in the case of a Borrowing consisting of Eurodollar Rate
Advances, initial Interest Period for each such Advance. Each Lender shall,
before 11:00 A.M. (New York City time) on the date of such Borrowing in the case
of a Borrowing consisting of Eurodollar Rate Advances and 1:00 P.M. (New York
City time) on the date of such Borrowing in the case of a Borrowing consisting
of Base Rate Advances, make available for the account of its Applicable Lending
Office to the Administrative Agent at the Administrative Agent's Account, in
same day funds, such Lender's ratable portion of such Borrowing in accordance
with the respective Commitments of such Lender and the other Lenders. After the
Administrative Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent will
make such funds available to the Borrower by crediting the Borrower's Account;
provided, however, that the Administrative Agent shall first make a portion of
such funds equal to the aggregate principal amount of any Letter of Credit
Advances made by any Issuing Bank and by any other Lender and outstanding on the
date of such Borrowing, plus interest accrued and unpaid thereon to and as of
such date, available to such Issuing Bank and such other Lenders for repayment
of such Letter of Credit Advances.

                  (b)      Anything in subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for
the initial Borrowing hereunder or for any Borrowing if the aggregate amount of
such Borrowing is less than $5,000,000 or if the obligation of the Lenders to
make Eurodollar Rate Advances shall then be suspended pursuant to Section
2.07(d)(ii), 2.09 or 2.10 and (ii) there may not be more than 10 separate
Borrowings outstanding at any time.

                  (c)      Each Notice of Borrowing shall be irrevocable and
binding on the Borrower. In the case of any Borrowing that the related Notice of
Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Borrower
shall indemnify each Lender against any loss, cost or expense incurred by such
Lender as a result of any failure to fulfill on or before the date specified in
such Notice of Borrowing for such Borrowing the applicable conditions set forth
in Article III, including, without limitation, any loss, cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the Advance to be made by such Lender as part of
such Borrowing when such Advance, as a result of such failure, is not made on
such date.

                  (d)      Unless the Administrative Agent shall have received
notice from a Lender prior to (x) the date of any Borrowing consisting of
Eurodollar Rate Advances or (y) 12:00 Noon (New York City time) on the date of
any Borrowing consisting of Base Rate Advances that such Lender will not make
available to the Administrative Agent such Lender's ratable portion of such
Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.02 and the Administrative Agent
may, in reliance upon such assumption, make available to the

                                       25

<PAGE>

Borrower on such date a corresponding amount. If and to the extent that such
Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay or
pay to the Administrative Agent forthwith on demand such corresponding amount
and to pay interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid or paid to the
Administrative Agent, at (i) in the case of the Borrower, the interest rate
applicable at such time under Section 2.07 to Advances comprising such Borrowing
and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender
shall pay to the Administrative Agent such corresponding amount, such amount so
paid shall constitute such Lender's Advance as part of such Borrowing for all
purposes.

                  (e)      The failure of any Lender to make the Advance to be
made by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of such Borrowing,
but no Lender shall be responsible for the failure of any other Lender to make
the Advance to be made by such other Lender on the date of any Borrowing.

                  SECTION 2.03. Issuance of and Drawings and Reimbursement Under
Letters of Credit. (a) Request for Issuance. Each Letter of Credit shall be
issued upon notice, given not later than 11:00 A.M. (New York City time) on the
fifth Business Day prior to the date of the proposed issuance of such Letter of
Credit, by the Borrower to any Issuing Bank, which shall give to the
Administrative Agent and each Lender prompt notice thereof by telex or
telecopier. Each such notice of issuance of a Letter of Credit (a "NOTICE OF
ISSUANCE") shall be by telephone, confirmed immediately in writing, or telex or
telecopier, specifying therein the requested (i) date of such issuance (which
shall be a Business Day), (ii) Available Amount of such Letter of Credit, (iii)
expiration date of such Letter of Credit, (iv) name and address of the
beneficiary of such Letter of Credit and (v) form of such Letter of Credit, and
shall be accompanied by such application and agreement for letter of credit as
such Issuing Bank may specify to the Borrower for use in connection with such
requested Letter of Credit (a "LETTER OF CREDIT AGREEMENT"). If (y) the
requested form of such Letter of Credit is acceptable to such Issuing Bank in
its sole discretion and (z) it has not received notice of objection to such
issuance from the Required Lenders, such Issuing Bank will, upon fulfillment of
the applicable conditions set forth in Article III, make such Letter of Credit
available to the Borrower at its office referred to in Section 9.02 or as
otherwise agreed with the Borrower in connection with such issuance. In the
event and to the extent that the provisions of any Letter of Credit Agreement
shall conflict with this Agreement, the provisions of this Agreement shall
govern.

                  (b)      Letter of Credit Reports. Each Issuing Bank shall
furnish (i) to each Lender on the first Business Day of each month a written
report summarizing issuance and expiration dates of Letters of Credit issued by
such Issuing Bank during the preceding month and drawings during such month
under all Letters of Credit issued by such Issuing Bank and (ii) to the
Administrative Agent and each Lender on the first Business Day of each calendar
quarter a written report setting forth the average daily aggregate Available
Amount during the preceding calendar quarter of all Letters of Credit issued by
such Issuing Bank.

                  (c)      Drawing and Reimbursement. The payment by any Issuing
Bank of a draft drawn under any Letter of Credit shall constitute for all
purposes of this Agreement the making by such Issuing Bank of a Letter of Credit
Advance, which shall be a Base Rate Advance, in the amount of such draft. Upon
written demand by any Issuing Bank with an outstanding Letter of Credit Advance,
with a copy of such demand to the Administrative Agent, each Lender shall
purchase from such Issuing Bank, and such Issuing Bank shall sell and assign to
each such Lender, such Lender's Pro Rata Share of such outstanding Letter of
Credit Advance as of the date of such purchase, by making available for the
account of its Applicable Lending Office to the Administrative Agent for the
account of such Issuing Bank, by deposit to the Administrative Agent's Account,
in same day funds, an amount equal to the portion of the outstanding principal
amount of such Letter of Credit Advance to be purchased by such Lender.

                                       26

<PAGE>

Promptly after receipt thereof, the Administrative Agent shall transfer such
funds to such Issuing Bank. The Borrower hereby agrees to each such sale and
assignment. Each Lender agrees to purchase its Pro Rata Share of an outstanding
Letter of Credit Advance on (i) the Business Day on which demand therefor is
made by the Issuing Bank which made such Advance, provided that notice of such
demand is given not later than 11:00 A.M. (New York City time) on such
Business Day, or (ii) the first Business Day next succeeding such demand if
notice of such demand is given after such time. Upon any such assignment by an
Issuing Bank to any Lender of a portion of a Letter of Credit Advance, such
Issuing Bank represents and warrants to such other Lender that such Issuing Bank
is the legal and beneficial owner of such interest being assigned by it, free
and clear of any liens, but makes no other representation or warranty and
assumes no responsibility with respect to such Letter of Credit Advance, the
Loan Documents or any Loan Party. If and to the extent that any Lender shall not
have so made the amount of such Letter of Credit Advance available to the
Administrative Agent, such Lender agrees to pay to the Administrative Agent
forthwith on demand such amount together with interest thereon, for each day
from the date of demand by such Issuing Bank until the date such amount is paid
to the Administrative Agent, at the Federal Funds Rate for its account or the
account of such Issuing Bank, as applicable. If such Lender shall pay to the
Administrative Agent such amount for the account of such Issuing Bank on any
Business Day, such amount so paid in respect of principal shall constitute a
Letter of Credit Advance made by such Lender on such Business Day for purposes
of this Agreement, and the outstanding principal amount of the Letter of Credit
Advance made by such Issuing Bank shall be reduced by such amount on such
Business Day.

                  (d)      Failure to Make Letter of Credit Advances. The
failure of any Lender to make the Letter of Credit Advance to be made by it on
the date specified in Section 2.03(c) shall not relieve any other Lender of its
obligation hereunder to make its Letter of Credit Advance on such date, but no
Lender shall be responsible for the failure of any other Lender to make the
Letter of Credit Advance to be made by such other Lender on such date.

                  SECTION 2.04. Repayment of Advances. (a) Revolving Credit
Advances. The Borrower shall repay to the Administrative Agent for the ratable
account of the Lenders on the Termination Date the aggregate outstanding
principal amount of the Revolving Credit Advances then outstanding.

                  (b)      Letter of Credit Advances. (i) The Borrower shall
repay to the Administrative Agent for the account of each Issuing Bank and each
other Lender that has made a Letter of Credit Advance on the same day on which
such Advance was made the outstanding principal amount of each Letter of Credit
Advance made by each of them.

                  (ii)     The Obligations of the Borrower under this Agreement,
any Letter of Credit Agreement and any other agreement or instrument relating to
any Letter of Credit (and the obligations of each Lender to reimburse the
Issuing Bank with respect thereto) shall be unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement, such
Letter of Credit Agreement and such other agreement or instrument under all
circumstances, including, without limitation, the following circumstances:

                  (A)      any lack of validity or enforceability of any Loan
         Document, any Letter of Credit Agreement, any Letter of Credit or any
         other agreement or instrument relating thereto (all of the foregoing
         being, collectively, the "L/C RELATED DOCUMENTS");

                  (B)      any change in the time, manner or place of payment
         of, or in any other term of, all or any of the Obligations of the
         Borrower in respect of any L/C Related Document or any

                                       27

<PAGE>

         other amendment or waiver of or any consent to departure from all or
         any of the L/C Related Documents;

                  (C)      the existence of any claim, set-off, defense or other
         right that the Borrower may have at any time against any beneficiary or
         any transferee of a Letter of Credit (or any Persons for which any such
         beneficiary or any such transferee may be acting), any Issuing Bank or
         any other Person, whether in connection with the transactions
         contemplated by the L/C Related Documents or any unrelated transaction;

                  (D)      any statement or any other document presented under a
         Letter of Credit proving to be forged, fraudulent, invalid or
         insufficient in any respect or any statement therein being untrue or
         inaccurate in any respect;

                  (E)      payment by any Issuing Bank under a Letter of Credit
         against presentation of a draft or certificate that does not strictly
         comply with the terms of such Letter of Credit;

                  (F)      any exchange, release or non-perfection of any
         Collateral or other collateral, or any release or amendment or waiver
         of or consent to departure from the Guaranties or any other guarantee,
         for all or any of the Obligations of the Borrower in respect of the L/C
         Related Documents; or

                  (G)      any other circumstance or happening whatsoever,
         whether or not similar to any of the foregoing, including, without
         limitation, any other circumstance that might otherwise constitute a
         defense available to, or a discharge of, the Borrower or a guarantor.

                  SECTION 2.05. Termination or Reduction of the Commitments. (a)
Optional. The Borrower may, upon at least three Business Days' notice to the
Administrative Agent, terminate in whole or reduce in part the unused portions
of the Letter of Credit Facility and the Unused Revolving Credit Commitments;
provided, however, that each partial reduction of a Facility (i) shall be in an
aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and (ii) shall be made ratably among the Lenders in accordance with
their Commitments with respect to such Facility.

                  (b)      Mandatory. The Letter of Credit Facility shall be
permanently reduced from time to time on the date of each reduction in the
Revolving Credit Facility by the amount, if any, by which the amount of the
Letter of Credit Facility exceeds the Revolving Credit Facility after giving
effect to such reduction of the Revolving Credit Facility.

                  SECTION 2.06. Prepayments. (a) Optional. The Borrower may,
upon same day notice in the case of Base Rate Advances and two Business Days'
notice in the case of Eurodollar Rate Advances, in each case to the
Administrative Agent stating the proposed date and aggregate principal amount of
the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding aggregate principal amount of the Advances comprising part of the
same Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the aggregate principal amount prepaid; provided,
however, that (i) each partial prepayment shall be in an aggregate principal
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof or,
if less, the amount of the Advances outstanding and (ii) if any prepayment of a
Eurodollar Rate Advance is made on a date other than the last day of an Interest
Period for such Advance, the Borrower shall also pay any amounts owing pursuant
to Section 9.04(c).

                  (b)      Mandatory. (i) The Borrower shall, on each Business
Day, prepay an aggregate principal amount of the Revolving Credit Advances
comprising part of the same Borrowings and the

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<PAGE>

Letter of Credit Advances and deposit an amount in the L/C Cash Collateral
Account in an amount equal to the amount by which (A) the sum of the aggregate
principal amount of (1) the Revolving Credit Advances then outstanding and (2)
the Letter of Credit Advances then outstanding plus the aggregate Available
Amount of all Letters of Credit then outstanding exceeds (B) the lesser of the
Revolving Credit Facility and the Loan Value on such Business Day.

                  (ii)     The Borrower shall, on each Business Day, pay to the
Administrative Agent for deposit in the L/C Cash Collateral Account an amount
sufficient to cause the aggregate amount on deposit in the L/C Cash Collateral
Account to equal the amount by which the aggregate Available Amount of all
Letters of Credit then outstanding exceeds the Letter of Credit Facility on such
Business Day.

                  (iii)    Prepayments of the Revolving Credit Facility made
pursuant to clause (i) above shall be first applied to prepay Letter of Credit
Advances then outstanding until such Advances are paid in full, second applied
to prepay Revolving Credit Advances then outstanding comprising part of the same
Borrowings until such Advances are paid in full and third deposited in the L/C
Cash Collateral Account to cash collateralize 100% of the Available Amount of
the Letters of Credit then outstanding. Upon the drawing of any Letter of Credit
for which funds are on deposit in the L/C Cash Collateral Account, such funds
shall be applied to reimburse the relevant Issuing Bank or Lenders, as
applicable.

                  (iv)     All prepayments under this subsection (b) shall be
made together with accrued interest to the date of such prepayment on the
principal amount prepaid.

                  SECTION 2.07. Interest. (a) Scheduled Interest. The Borrower
shall pay interest on the unpaid principal amount of each Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum:

                  (i)      Base Rate Advances. During such periods as such
         Advance is a Base Rate Advance, a rate per annum equal at all times to
         the sum of (A) the Base Rate in effect from time to time plus (B) the
         Applicable Margin in effect from time to time, payable in arrears
         quarterly on the last day of each March, June, September and December
         during such periods and on the date such Base Rate Advance shall be
         Converted or paid in full.

                  (ii)     Eurodollar Rate Advances. During such periods as such
         Advance is a Eurodollar Rate Advance, a rate per annum equal at all
         times during each Interest Period for such Advance to the sum of (A)
         the Eurodollar Rate for such Interest Period for such Advance plus (B)
         the Applicable Margin in effect on the first day of such Interest
         Period, payable in arrears on the last day of such Interest Period and,
         if such Interest Period has a duration of more than three months, on
         each day that occurs during such Interest Period every three months
         from the first day of such Interest Period and on the date such
         Eurodollar Rate Advance shall be Converted or paid in full.

                  (b)      Default Interest. Upon the occurrence and during the
continuance of a Default of the type described in Section 6.01 (a) or (i) or, at
the election of the Administrative Agent or the Required Lenders, upon the
occurrence and during the continuance of an Event of Default, the Borrower shall
pay interest on (i) the unpaid principal amount of each Advance owing to each
Lender, payable in arrears on the dates referred to in clause (a)(i) or (a)(ii)
above and on demand, at a rate per annum equal at all times to 2% per annum
above the rate per annum required to be paid on such Advance pursuant to clause
(a)(i) or (a)(ii) above and (ii) to the fullest extent permitted by law, the
amount of any interest, fee or other amount payable under the Loan Documents
that is not paid when due, from the date such amount shall be due until such
amount shall be paid in full, payable in arrears on the date such amount shall
be paid in full and on demand, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid, in the case of interest, on
the Type of Advance on which such interest has accrued pursuant to

                                       29

<PAGE>

clause (a)(i) or (a)(ii) above and, in all other cases, on Base Rate Advances
pursuant to clause (a)(i) above.

                  (c)      Notice of Interest Period and Interest Rate. Promptly
after receipt of a Notice of Borrowing pursuant to Section 2.02(a), a notice of
Conversion pursuant to Section 2.09 or a notice of selection of an Interest
Period pursuant to the terms of the definition of "Interest Period", the
Administrative Agent shall give notice to the Borrower and each Lender of the
applicable Interest Period and the applicable interest rate determined by the
Administrative Agent for purposes of clause (a)(i) or (a)(ii) above, and the
applicable rate, if any, furnished by each Reference Bank for the purpose of
determining the applicable interest rate under clause (a)(ii) above.

                  (d)      Interest Rate Determination. (i) Each Reference Bank
agrees to furnish to the Administrative Agent timely information for the purpose
of determining each Eurodollar Rate. If either of the Reference Banks shall not
furnish such timely information to the Administrative Agent for the purpose of
determining any such interest rate, the Administrative Agent shall determine
such interest rate on the basis of timely information furnished by the other
Reference Bank.

                  (ii)     If Telerate Page 3750 is unavailable and neither
Reference Bank is able to furnish timely information to the Administrative Agent
for determining the Eurodollar Rate for any Eurodollar Rate Advances,

                  (A)      the Administrative Agent shall forthwith notify the
         Borrower and the Lenders that the interest rate cannot be determined
         for such Eurodollar Rate Advances,

                  (B)      each such Advance will automatically, on the last day
         of the then existing Interest Period therefor, Convert into a Base Rate
         Advance (or if such Advance is then a Base Rate Advance, will continue
         as a Base Rate Advance), and

                  (C)      the obligation of the Lenders to make, or to Convert
         Advances into, Eurodollar Rate Advances shall be suspended until the
         Administrative Agent shall notify the Borrower and the Lenders that the
         circumstances causing such suspension no longer exist.

                  SECTION 2.08. Fees. (a) Facility Fee. The Borrower shall pay
to the Administrative Agent for the account of the Lenders a facility fee (the
"FACILITY FEE"), from the date hereof in the case of each Initial Lender and
from the effective date specified in the Assignment and Acceptance pursuant to
which it became a Lender in the case of each other Lender until the Termination
Date, payable quarterly in arrears on the last day of each March, June,
September and December, commencing June 30,2003, and on the Termination Date.
The Facility Fee payable in respect of each Lender shall be calculated for each
quarterly period for which the Facility Fee is payable on the average daily
Revolving Credit Commitment of such Lender during such period at a rate equal to
0.20% per annum. If on the last day of any fiscal quarter the Borrower shall not
maintain a Debt Rating established by S&P and Moody's of at least BBB-and Baa3,
respectively, the Facility Fee for such fiscal quarter shall be zero.

                  (b)      Unused Fee. The Borrower shall pay to the
Administrative Agent for the account of the Lenders an unused commitment fee
(the "UNUSED FEE"), from the date hereof in the case of each Initial Lender and
from the effective date specified in the Assignment and Acceptance pursuant to
which it became a Lender in the case of each other Lender until the Termination
Date, payable in arrears on the date of the initial Borrowing hereunder, and
thereafter quarterly on the last day of each March, June, September and
December, commencing June 30,2003, and on the Termination Date. The Unused Fee
payable for the account of each Lender shall be calculated for each period for
which the Unused Fee is payable on the average daily Unused Revolving Credit
Commitment of such Lender during such period at

                                       30

<PAGE>

a per annum rate equal to the Applicable Percentage on the first day of such
period. If on the last day of any fiscal quarter the Borrower shall maintain a
Debt Rating established by S&P and Moody's of at least BBS- and Baa3,
respectively, the Unused Fee shall be zero for such fiscal quarter.

                  (c)      Letter of Credit Fees, Etc, (i) The Borrower shall
pay to the Administrative Agent for the account of each Lender a commission,
payable in arrears, (a) quarterly on the last day of each March, June, September
and December, commencing June 30,2003, and (b) on the earliest to occur of the
full drawing, expiration, termination or cancellation of any Letter of Credit,
and (c) on the Termination Date, on such Lender's Pro Rata Share of the average
daily aggregate Available Amount during such quarter of all Letters of Credit
outstanding from time to time at the rate per annum equal to the Applicable
Margin for Eurodollar Rate Advances in effect from time to time.

                  (ii)     The Borrower shall pay to each Issuing Bank, for its
own account, (A) a fronting fee for each Letter of Credit issued by such Issuing
Bank in an amount equal to 0.125% of the Available Amount of such Letter of
Credit on the date of issuance of such Letter of Credit, payable on such date
and (B) such other commissions, issuance fees, transfer fees and other fees and
charges in connection with the issuance or administration of each Letter of
Credit as the Borrower and such Issuing Bank shall agree.

                  (d)      Agents' Fees. The Borrower shall pay to each Agent
for its own account such fees as may from time to time be agreed between the
Borrower and such Agent.

                  SECTION 2.09. Conversion of Advances. (a) Optional. The
Borrower may on any Business Day, upon notice given to the Administrative Agent
not later than 11:00 A.M. (New York City time) on the third Business Day prior
to the date of the proposed Conversion and subject to the provisions of Sections
2.07 and 2.10, Convert all or any portion of the Advances of one Type comprising
the same Borrowing into Advances of the other Type; provided, however, that any
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made
only on the last day of an Interest Period for such Eurodollar Rate Advances,
any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in
an amount not less than the minimum amount specified in Section 2.02(b), no
Conversion of any Advances shall result in more separate Borrowings than
permitted under Section 2.02(b) and each Conversion of Advances comprising part
of the same Borrowing under any Facility shall be made ratably among the Lenders
in accordance with their Commitments under such Facility. Each such notice of
Conversion shall, within the restrictions specified above, specify (i) the date
of such Conversion, (ii) the Advances to be Converted and (iii) if such
Conversion is into Eurodollar Rate Advances, the duration of the initial
Interest Period for such Advances, Each notice of Conversion shall be
irrevocable and binding on the Borrower.

                  (b)      Mandatory. (i) On the date on which the aggregate
unpaid principal amount of Eurodollar Rate Advances comprising any Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Advances shall automatically Convert into Base Rate Advances.

                  (ii)     If the Borrower shall fail to select the duration of
any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrower and the Lenders,
whereupon each such Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate Advance.

                  (iii)    Upon the occurrence and during the continuance of any
Event of Default, (y) each Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a Base Rate
Advance and (z) the obligation of the Lenders to make, or to Convert Advances
into, Eurodollar Rate Advances shall be suspended.

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<PAGE>

                  SECTION 2.10. Increased Costs. Etc, (a) If, due to either (i)
the introduction after the date hereof of or any change after the date hereof in
or in the interpretation of any law or regulation or (ii) the compliance with
any guideline or request after the date hereof from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender Party of agreeing to make or of making,
funding or maintaining Eurodollar Rate Advances or of agreeing to issue or of
issuing or maintaining or participating in Letters of Credit or of agreeing to
make or of making or maintaining Letter of Credit Advances (excluding, for
purposes of this Section 2.10, any such increased costs resulting from (y) Taxes
or Other Taxes (as to which Section 2.12 shall govern) and (z) changes in the
basis of taxation of overall net income or overall gross income by the United
States or by the foreign jurisdiction or state under the laws of which such
Lender Party is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time, upon demand by
such Lender Party (with a copy of such demand to the Administrative Agent), pay
to the Administrative Agent for the account of such Lender Party additional
amounts sufficient to compensate such Lender Party for such increased cost;
provided, however, that a Lender Party claiming additional amounts under this
Section 2.10(a) agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such a designation would avoid the
need for, or reduce the amount of, such increased cost that may thereafter
accrue and would not, in the reasonable judgment of such Lender Party, be
otherwise disadvantageous to such Lender Party. A certificate as to the amount
of such increased cost, submitted to the Borrower by such Lender Party, shall be
conclusive and binding for all purposes, absent manifest error.

                  (b)      If any Lender Party determines that compliance with
any law or regulation after the date hereof or any guideline or request after
the date hereof from any central bank or other governmental authority (whether
or not having the force of law) affects or would affect the amount of capital
required or expected to be maintained by such Lender Party or any corporation
controlling such Lender Party and that the amount of such capital is increased
by or based upon the existence of such Lender Party's commitment to lend or to
issue or participate in Letters of Credit hereunder and other commitments of
such type or the issuance or maintenance of or participation in the Letters of
Credit (or similar contingent obligations), then, upon demand by such Lender
Party or such corporation (with a copy of such demand to the Administrative
Agent), the Borrower shall pay to the Administrative Agent for the account of
such Lender Party, from time to time as specified by such Lender Party,
additional amounts sufficient to compensate such Lender Party in the light of
such circumstances, to the extent that such Lender Party reasonably determines
such increase in capital to be allocable to the existence of such Lender Party's
commitment to lend or to issue or participate in Letters of Credit hereunder or
to the issuance or maintenance of or participation in any Letters of Credit. A
certificate as to such amounts submitted to the Borrower by such Lender Party
shall be conclusive and binding for all purposes, absent manifest error.

                  (c)      If, with respect to any Eurodollar Rate Advances, the
Required Lenders notify the Administrative Agent that the Eurodollar Rate for
any Interest Period for such Advances will not adequately reflect the cost to
such Lenders of making, funding or maintaining their Eurodollar Rate Advances
for such Interest Period, the Administrative Agent shall forthwith so notify the
Borrower and the Lenders, whereupon (i) each such Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make,
or to Convert Advances into, Eurodollar Rate Advances shall be suspended until
the Administrative Agent shall notify the Borrower that such Lenders have
determined that the circumstances causing such suspension no longer exist.

                  (d)      Notwithstanding any other provision of this
Agreement, if the introduction of or any change in or in the interpretation of
any law or regulation shall make it unlawful, or any central bank

                                       32

<PAGE>

or other governmental authority shall assert that it is unlawful, for any Lender
or its Eurodollar Lending Office to perform its obligations hereunder to make
Eurodollar Rate Advances or to continue to fund or maintain Eurodollar Rate
Advances hereunder, then, on notice thereof and demand therefor by such Lender
to the Borrower through the Administrative Agent, (i) each Eurodollar Rate
Advance will automatically, upon such demand, Convert into a Base Rate Advance
and (ii) the obligation of the Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended until the Administrative Agent shall
notify the Borrower that such Lender has determined that the circumstances
causing such suspension no longer exist; provided, however, that, before making
any such demand, such Lender agrees to use reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions) to designate a
different Eurodollar Lending Office if the making of such a designation would
allow such Lender or its Eurodollar Lending Office to continue to perform its
obligations to make Eurodollar Rate Advances or to continue to fund or maintain
Eurodollar Rate Advances and would not, in the judgment of such Lender, be
otherwise disadvantageous to such Lender.

                  SECTION 2.11. Payments and Computations. (a) The Borrower
shall make each payment hereunder and under the Notes, irrespective of any right
of counterclaim or set-off (except as otherwise provided in Section 2.13), not
later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars
to the Administrative Agent at the Administrative Agent's Account in same day
funds, with payments being received by the Administrative Agent after such time
being deemed to have been received on the next succeeding Business Day. The
Administrative Agent will promptly thereafter cause like funds to be distributed
(i) if such payment by the Borrower is in respect of principal, interest,
commitment fees or any other Obligation then payable hereunder and under the
Notes to more than one Lender Party, to such Lender Parties for the account of
their respective Applicable Lending Offices ratably in accordance with the
amounts of such respective Obligations then payable to such Lender Parties and
(ii) if such payment by the Borrower is in respect of any Obligation then
payable hereunder to one Lender Party, to such Lender Party for the account of
its Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to
Section 9.07(d), from and after the effective date of such Assignment and
Acceptance, the Administrative Agent shall make all payments hereunder and under
the Notes in respect of the interest assigned thereby to the Lender Party
assignee thereunder, and the parties to such Assignment and Acceptance shall
make all appropriate adjustments in such payments for periods prior to such
effective date directly between themselves.

                  (b)      The Borrower hereby authorizes each Lender Party and
each of its Affiliates, if and to the extent payment owed to such Lender Party
is not made when due hereunder or, in the case of a Lender, under the Note held
by such Lender, to charge from time to time, to the fullest extent permitted by
law, against any or all of the Borrower's accounts with such Lender Party any
amount so due.

                  (c)      All computations of interest based on the Base Rate
shall be made by the Administrative Agent on the basis of a year of 365 or 366
days, as the case may be, and all computations of interest based on the
Eurodollar Rate or the Federal Funds Rate and of fees and Letter of Credit
commissions shall be made by the Administrative Agent on the basis of a year of
360 days, in each case for the actual number of days (including the first day
but excluding the last day) occurring in the period for which such interest,
fees or commissions are payable. Each determination by the Administrative Agent
of an interest rate, fee or commission hereunder shall be conclusive and binding
for all purposes, absent manifest error.

                  (d)      Whenever any payment hereunder or under the Notes
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or

                                       33

<PAGE>

commitment fee, as the case may be; provided, however, that, if such extension
would cause payment of interest on or principal of Eurodollar Rate Advances to
be made in the next following calendar month, such payment shall be made on the
next preceding Business Day.

                  (e)      Unless the Administrative Agent shall have received
notice from the Borrower prior to the date on which any payment is due to any
Lender Party hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each such Lender Party
on such due date an amount equal to the amount then due such Lender Party. If
and to the extent the Borrower shall not have so made such payment in full to
the Administrative Agent, each such Lender Party shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
Party together with interest thereon, for each day from the date such amount is
distributed to such Lender Party until the date such Lender Party repays such
amount to the Administrative Agent, at the Federal Funds Rate.

                  (f)      Whenever any payment received by the Administrative
Agent under this Agreement or any of the other Loan Documents is insufficient to
pay in full all amounts due and payable to the Agents and the Lender Parties
under or in respect of this Agreement and the other Loan Documents on any date,
such payment shall be distributed by the Administrative Agent and applied by the
Agents and the Lender Parties in the following order of priority:

                  (i)      first, to the payment of all of the fees,
         indemnification payments, costs and expenses that are due and payable
         to the Agents (solely in their respective capacities as Agents) under
         or in respect of this Agreement and the other Loan Documents on such
         date, ratably based upon the respective aggregate amounts of all such
         fees, indemnification payments, costs and expenses owing to the Agents
         on such date;

                  (ii)     second, to the payment of all of the fees,
         indemnification payments, costs and expenses that are due and payable
         to the Issuing Banks (solely in their respective capacities as such)
         under or in respect of this Agreement and the other Loan Documents on
         such date, ratably based upon the respective aggregate amounts of all
         such fees, indemnification payments, costs and expenses owing to the
         Issuing Banks on such date;

                  (iii)    third, to the payment of all of the indemnification
         payments, costs and expenses that are due and payable to the Lenders
         under Section 9.04, Section 22 of the Security Agreements and any
         similar section of any of the other Loan Documents on such date,
         ratably based upon the respective aggregate amounts of all such
         indemnification payments, costs and expenses owing to the Lenders on
         such date;

                  (iv)     fourth, to the payment of all of the amounts that are
         due and payable to the Administrative Agent and the Lender Parties
         under Sections 2.10 and 2.12 on such date, ratably based upon the
         respective aggregate amounts thereof owing to the Administrative Agent
         and the Lender Parties on such date;

                  (v)      fifth, to the payment of all of the fees that are due
         and payable to the Lenders under Section 2.08(a) and (b) on such date,
         ratably based upon the respective aggregate Commitments of the Lenders
         under the Facilities on such date;

                  (vi)     sixth, to the payment of all of the accrued and
         unpaid interest on the Obligations of the Borrower under or in respect
         of the Loan Documents that is due and payable to the Administrative
         Agent and the Lender Parties under Section 2.07(b) on such date,
         ratably based

                                       34

<PAGE>

         upon the respective aggregate amounts of all such interest owing to the
         Administrative Agent and the Lender Parties on such date;

                  (vii)    seventh, to the payment of all of the accrued and
         unpaid interest on the Advances that is due and payable to the
         Administrative Agent and the Lender Parties under Section 2.07(a) on
         such date, ratably based upon the respective aggregate amounts of all
         such interest owing to the Administrative Agent and the Lender Parties
         on such date;

                  (viii)   eighth, to the payment of the principal amount of all
         of the outstanding Advances and any reimbursement obligations that are
         due and payable to the Administrative Agent and the Lender Parties on
         such date, ratably based upon the respective aggregate amounts of all
         such principal and reimbursement obligations owing to the
         Administrative Agent and the Lender Parties on such date, and to
         deposit into the L/C Cash Collateral Account any contingent
         reimbursement obligations in respect of outstanding Letters of Credit
         to the extent required by Section 6.02; and

                  (ix)     ninth, to the payment of all other Obligations of the
         Loan Parties owing under or in respect of the Loan Documents that are
         due and payable to the Administrative Agent and the other Secured
         Parties on such date, ratably based upon the respective aggregate
         amounts of all such Obligations owing to the Administrative Agent and
         the other Secured Parties on such date.

                  SECTION 2.12. Taxes. (a) Any and all payments by the Borrower
hereunder or under the Notes shall be made, in accordance with Section 2.11,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender Party and the
Administrative Agent, taxes that are imposed on its overall net income by the
United States and taxes that are imposed on its overall net income (and
franchise or other similar taxes imposed in lieu thereof) by the state or
foreign jurisdiction under the laws of which such Lender Party or the
Administrative Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Lender Parry, taxes that are
imposed on its overall net income (and franchise or other similar taxes imposed
in lieu thereof) by the state or foreign jurisdiction of such Lender Party's
Applicable Lending Office or any political subdivision thereof (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as "TAXES"). If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note to any Lender Party or the Administrative Agent, (i) the sum payable by the
Borrower shall be increased as may be necessary so that after the Borrower and
the Administrative Agent have made all required deductions (including deductions
applicable to additional sums payable under this Section 2.12) such Lender Party
or the Administrative Agent, as the case may be, receives an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower
shall make all such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance
with applicable law.

                  (b)      In addition, the Borrower shall pay any present or
future stamp, documentary, excise, property, intangible, mortgage recording or
similar taxes, charges or levies that arise from any payment made hereunder or
under the Notes or from the execution, delivery or registration of, performance
under, or otherwise with respect to, this Agreement, or any other Loan Document
(hereinafter referred to as "OTHER TAXES"). Each Lender Party represents as of
the date hereof that, to the best of its knowledge without having conducted any
investigation, except for any Other Taxes that may be imposed under the federal,
state or local laws of the United States (or any political subdivision thereof),
it is not aware of the imposition of any Other Taxes with respect to this
Agreement or any other Loan Document.

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<PAGE>

                  (c)      The Borrower shall indemnify each Lender Party and
the Administrative Agent for and hold them harmless against the full amount of
Taxes and Other Taxes, and for the full amount of taxes of any kind imposed by
any jurisdiction (taking into account any available credits, as determined in
the sole discretion of the Lender Party or the Administrative Agent (as the case
may be), arising from the imposition of the underlying Taxes or Other Taxes) on
amounts payable under this Section 2. 12, imposed on or paid by such Lender
Party or the Administrative Agent (as the case may be) and any liability
(including penalties, additions to tax, interest and expenses) arising therefrom
or with respect thereto. This indemnification shall be made within 30 days from
the date such Lender Party or the Administrative Agent (as the case may be)
makes written demand therefor, provided, however, that the Borrower shall not be
obligated to make payment to any Lender Party or the Administrative Agent (as
the case may be) pursuant to this Section 2.12 in respect of penalties, interest
and other liabilities attributable to any Taxes or Other Taxes, if such
penalties, interest and other liabilities are attributable to the gross
negligence or willful misconduct of such Lender Party or the Administrative
Agent.

                  (d)      Within 30 days after the date of any payment of
Taxes, the Borrower shall furnish to the Administrative Agent, at its address
referred to in Section 9.02, the original or a certified copy of a receipt
evidencing such payment or, if such receipts are not obtainable, other evidence
of such payments by the Borrower reasonably satisfactory to the Administrative
Agent.

                  (e)      Each Lender Party organized under the laws of a
jurisdiction outside the United States shall, on or prior to the date of its
execution and delivery of this Agreement in the case of each Initial Lender
Party, and on the date of the Assignment and Acceptance pursuant to which it
becomes a Lender Party in the case of each other Lender Party, and from time to
time thereafter as requested in writing by the Borrower (but only so long
thereafter as such Lender Party remains lawfully able to do so), provide each of
the Administrative Agent and the Borrower with two original Internal Revenue
Service forms W8-ECI or W8-BEN, as appropriate, or any successor or other form
prescribed by the Internal Revenue Service, certifying that such Lender Party is
exempt from or entitled to a reduced rate of United States withholding tax on
payments pursuant to this Agreement or the Notes. If the forms provided by a
Lender Party at the time such Lender Party first becomes a parry to this
Agreement indicate a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Lender Party provides the appropriate forms certifying
that a lesser rate applies, whereupon withholding tax at such lesser rate only
shall be considered excluded from Taxes for periods governed by such forms;
provided, however, that if, at the effective date of the Assignment and
Acceptance pursuant to which a Lender Party becomes a parry to this Agreement,
the Lender Party assignor was entitled to payments under subsection (a) of this
Section 2.12 in respect of United States withholding tax with respect to
interest paid at such date, then, to such extent, the term Taxes shall include
(in addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the Lender Party assignee on such date. If any form
or document referred to in this subsection (e) requires the disclosure of
information, other than information necessary to compute the tax payable and
information required on the date hereof by Internal Revenue Service form W8-ECI
or W8-BEN, that the applicable Lender Party reasonably considers to be
confidential, such Lender Party shall give notice thereof to the Borrower and
shall not be obligated to include in such form or document such confidential
information.

                  (f)      For any period with respect to which a Lender Party
has failed to provide the Borrower with the appropriate form described in
subsection (e) above (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such
Lender Party shall not be entitled to indemnification under subsection (a) or
(c) of this Section 2.12 with respect to Taxes imposed by the United States by
reason of such failure; provided, however, that should a Lender Party become
subject to

                                       36

<PAGE>

Taxes because of its failure to deliver a form required hereunder, the Borrower
shall take such steps as such Lender Party shall reasonably request to assist
such Lender Party to recover such Taxes.

                  (g)      Any Lender Party claiming any additional amounts
payable pursuant to this Section 2.12 agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Eurodollar Lending Office if the making of such a
change would avoid the need for, or reduce the amount of, any such additional
amounts that may thereafter accrue and would not, in the reasonable judgment of
such Lender Party, be otherwise disadvantageous to such Lender Party.

                  (h)      If any Lender Party or the Administrative Agent
receives a refund of Taxes or Other Taxes paid by the Borrower or for which the
Borrower has indemnified any Lender Party or the Administrative Agent, as the
case may be, pursuant to this Section 2.12, then such Lender Party or the
Administrative Agent, as applicable, shall pay such amount, net of any expenses
incurred by such Lender Party or the Administrative Agent, to the Borrower
within 30 days of the receipt of such Taxes or Other Taxes. Notwithstanding the
foregoing, (i) the Borrower shall not be entitled to review the tax records or
financial information of any Lender Party or the Administrative Agent and (ii)
neither the Administrative Agent nor any Lender Party shall have any obligation
to pursue (and no Loan Party shall have any right to assert) any refund of Taxes
or Other Taxes that may be paid by the Borrower.

                  SECTION 2.13. Sharing of Payments. Etc. If any Lender Party
shall obtain at any time any payment (whether voluntary, involuntary, through
the exercise of any right of set-off, or otherwise, other than as a result of an
assignment pursuant to Section 9.07) (a) on account of Obligations due and
payable to such Lender Party hereunder and under the Notes at such time in
excess of its ratable share (according to the proportion of (i) the amount of
such Obligations due and payable to such Lender Party at such time to (ii) the
aggregate amount of the Obligations due and payable to all Lender Parties
hereunder and under the Notes at such time) of payments on account of the
Obligations due and payable to all Lender Parties hereunder and under the Notes
at such time obtained by all the Lender Parties at such time or (b) on account
of Obligations owing (but not due and payable) to such Lender Party hereunder
and under the Notes at such time in excess of its ratable share (according to
the proportion of (i) the amount of such Obligations owing to such Lender Party
at such time to (ii) the aggregate amount of the Obligations owing (but not due
and payable) to all Lender Parties hereunder and under the Notes at such time)
of payments on account of the Obligations owing (but not due and payable) to all
Lender Parties hereunder and under the Notes at such time obtained by all of the
Lender Parties at such time, such Lender Party shall forthwith purchase from the
other Lender Parties such interests or participating interests in the
Obligations due and payable or owing to them, as the case may be, as shall be
necessary to cause such purchasing Lender Party to share the excess payment
ratably with each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender Party, such
purchase from each other Lender Party shall be rescinded and such other Lender
Party shall repay to the purchasing Lender Party the purchase price to the
extent of such Lender Party's ratable share (according to the proportion of (i)
the purchase price paid to such Lender Party to (ii) the aggregate purchase
price paid to all Lender Parties) of such recovery together with an amount equal
to such Lender Party's ratable share (according to the proportion of (i) the
amount of such other Lender Party's required repayment to (ii) the total amount
so recovered from the purchasing Lender Party) of any interest or other amount
paid or payable by the purchasing Lender Party in respect of the total amount so
recovered. The Borrower agrees that any Lender Party so purchasing an interest
or participating interest from another Lender Party pursuant to this Section
2.13 may, to the fullest extent permitted by law, exercise all its rights of
payment (including the right of set-off) with respect to such interest or
participating interest, as the case may be, as fully as if such Lender Party
were the direct creditor of the Borrower in the amount of such interest or
participating interest, as the case may be.

                                       37

<PAGE>

                  SECTION 2.14. Use of Proceeds. The proceeds of the Advances
and issuances of Letters of Credit shall be available (and the Borrower agrees
that it shall use such proceeds and Letters of Credit) solely for the
acquisition and development of Real Property, to refinance certain Existing
Debt, and the general corporate purposes of the Borrower and its Subsidiaries.

                  SECTION 2.15. Evidence of Debt. (a) Each Lender Party shall
maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Borrower to such Lender Party resulting from each
Advance owing to such Lender Party from time to time, including the amounts of
principal and interest payable and paid to such Lender Party from time to time
hereunder. The Borrower agrees that upon notice by any Lender Party to the
Borrower (with a copy of such notice to the Administrative Agent) to the effect
that a promissory note or other evidence of indebtedness is required or
appropriate in order for such Lender Party to evidence (whether for purposes of
pledge, enforcement or otherwise) the Advances owing to, or to be made by, such
Lender Party, the Borrower shall promptly execute and deliver to such Lender
Party, with a copy to the Administrative Agent, a Note, in substantially the
form of Exhibit A hereto, payable to the order of such Lender Party in a
principal amount equal to the Revolving Credit Commitment of such Lender Party.
All references to Notes in the Loan Documents shall mean Notes, if any, to the
extent issued hereunder.

                  (b)      The Register maintained by the Administrative Agent
pursuant to Section 9.07(d) shall include a control account, and a subsidiary
account for each Lender Party, in which accounts (taken together) shall be
recorded (i) the date and amount of each Borrowing made hereunder, the Type of
Advances comprising such Borrowing and, if appropriate, the Interest Period
applicable thereto, (ii) the terms of each Assignment and Acceptance delivered
to and accepted by it, (iii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender Party
hereunder, and (iv) the amount of any sum received by the Administrative Agent
from the Borrower hereunder and each Lender Party's share thereof.

                  (c)      Entries made in good faith by the Administrative
Agent in the Register pursuant to subsection (b) above, and by each Lender Party
in its account or accounts pursuant to subsection (a) above, shall be prima
facie evidence of the amount of principal and interest due and payable or to
become due and payable from the Borrower to, in the case of the Register, each
Lender Party and, in the case of such account or accounts, such Lender Party,
under this Agreement, absent manifest error; provided, however, that the failure
of the Administrative Agent or such Lender Party to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts
shall not limit or otherwise affect the obligations of the Borrower under this
Agreement.

                  SECTION 2.16. Extension of Termination Date. (a) At least 30
days but not more than 60 days prior to the Termination Date, the Borrower, by
written notice to the Administrative Agent, may request, with respect to the
Revolving Credit Commitments and the Letter of Credit Commitments then
outstanding, a single one-year extension of the Termination Date. The
Administrative Agent shall promptly notify each Lender of such request and the
Termination Date in effect at such time shall, effective as at the Termination
Date (the "EXTENSION DATE"), be extended for an additional one year period,
provided that (i) the Collateral Agent shall have received no later than 10 days
prior to the Extension Date a recent Appraisal of each Eligible Real Estate
Asset (it being understood and agreed that any Appraisals previously delivered
to the Collateral Agent in satisfaction of a request made pursuant to Section
5.01(k)(iii) shall satisfy the requirements of this subsection (i)) and (ii) on
the Extension Date, the following statements shall be true in all material
respects and the Administrative Agent shall have received for the account of
each Lender Party a certificate signed by a duly authorized officer of the
Borrower, dated the Extension Date, stating that: (x) the representations and
warranties contained in Section 4.01 are true and correct on and as of the
Extension Date, and (y) no Default has occurred and is continuing or would
result from such extension. In the event that an extension is effected pursuant
to this

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<PAGE>

Section 2.16, the aggregate principal amount of all Advances shall be repaid in
full ratably to the Lenders on the Termination Date as so extended. As of the
Extension Date, any and all references in this Agreement, the Notes, if any, or
any of the other Loan Documents to the 'Termination Date" shall refer to the
Termination Date as so extended.

                  (b)      The Borrower shall pay to the Administrative Agent
for the account of the Lenders a Facility extension fee in an amount equal to
0.25% of the total Revolving Credit Commitments then outstanding, payable on the
Extension Date.

                                   ARTICLE III
            CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT

                  SECTION 3.01. Conditions Precedent to Initial Extension of
Credit. The obligation of each Lender to make an Advance or of any Issuing Bank
to issue a Letter of Credit on the occasion of the Initial Extension of Credit
hereunder is subject to the satisfaction of the following conditions precedent
before or concurrently with the Initial Extension of Credit:

                  (a)      The Administrative Agent shall have received on or
         before the day of the Initial Extension of Credit the following, each
         dated such day (unless otherwise specified), in form and substance
         satisfactory to the Administrative Agent (unless otherwise specified)
         and (except for the Notes) in sufficient copies for each Lender Party:

                           (i)      A Note payable to the order of each Lender
                  that has requested a Note prior to the Effective Date.

                           (ii)     A security agreement in substantially the
                  form of (x) Exhibit F-1 hereto, duly executed by each Loan
                  Party that owns Eligible Real Estate Assets, and (y) Exhibit
                  F-2 hereto, duly executed by Maguire Properties Services, Inc.
                  (such security agreements, together with each other security
                  agreement and security agreement supplement delivered pursuant
                  to Section 5.01(j), in each case as amended, being the
                  "SECURITY AGREEMENTS"), together with:

                                    (A)      acknowledgment copies of proper
                           financing statements, duly filed on or before the day
                           of the Initial Extension of Credit under the Uniform
                           Commercial Code of all jurisdictions that the
                           Collateral Agent may deem necessary or desirable in
                           order to perfect and protect the first priority liens
                           and security interests created under the Security
                           Agreements, covering the Collateral described in the
                           Security Agreements,

                                    (B)      completed requests for information,
                           dated on or before the date of the Initial Extension
                           of Credit, listing all effective financing statements
                           filed in the jurisdictions referred to in clause (A)
                           above and in such other jurisdictions specified by
                           the Administrative Agent that name any Loan Party as
                           debtor, together with copies of such other financing
                           statements,

                                    (C)      evidence of the completion of all
                           other recordings and filings of or with respect to
                           the Security Agreements that the Collateral Agent may
                           deem necessary or desirable in order to perfect and
                           protect the Liens created thereby,

                                    (D)      copies of the Assigned Agreements
                           referred to in the Security Agreements, together
                           with, except to the extent contemplated in Section
                           5.01(s)

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<PAGE>

                           to occur after the Closing Date, a consent to such
                           assignment, in substantially the form of Exhibit B to
                           the Security Agreements, duly executed by each party
                           to such Assigned Agreements other than the Loan
                           Parties, and

                                    (E)      evidence that all other action that
                           the Collateral Agent may deem necessary or desirable
                           in order to perfect and protect the first priority
                           liens and security interests created under the
                           Security Agreements has been taken (including,
                           without limitation, receipt of duly executed payoff
                           letters, UCC termination statements and landlords'
                           and bailees' waiver and consent agreements).

                           (iii)    Deeds of trust, trust deeds and mortgages,
                  in substantially the form of Exhibit G hereto (with such
                  changes as may be required to account for local law matters
                  and otherwise satisfactory in form and substance to the
                  Collateral Agent) and covering the properties comprising
                  Eligible Real Estate Assets (together with the Assignments of
                  Leases and Rents referred to therein and each other deed of
                  trust, trust deed and mortgage delivered pursuant to Section
                  5.01(j), in each case as amended, the "MORTGAGES"), duly
                  executed by the appropriate Loan Party, together with:

                                    (A)      evidence that counterparts of the
                           Mortgages have been duly executed, acknowledged and
                           delivered on or before the day of the Initial
                           Extension of Credit and are in form suitable for
                           filing or recording in all filing or recording
                           offices that the Collateral Agent may deem necessary
                           or desirable in order to create a valid first and
                           subsisting Lien on the property described therein in
                           favor of the Collateral Agent for the benefit of the
                           Secured Parties and that all filing and recording
                           taxes and fees have been paid,

                                    (B)      fully paid American Land Title
                           Association Lender's Extended Coverage title
                           insurance policies (the "MORTGAGE POLICIES") in form
                           and substance, with endorsements and in amount
                           acceptable to the Collateral Agent, issued, coinsured
                           and reinsured by title insurers acceptable to the
                           Collateral Agent, insuring the Mortgages to be valid
                           first and subsisting Liens on the property described
                           therein, free and clear of all defects (including,
                           but not limited to, mechanics' and materialmen's
                           Liens) and encumbrances, excepting only Permitted
                           Encumbrances, and providing for such other
                           affirmative insurance (including endorsements for
                           future advances under the Loan Documents and for
                           mechanics' and materialmen's Liens) and such
                           coinsurance and direct access reinsurance as the
                           Collateral Agent may deem necessary or desirable,

                                    (C)      American Land Title
                           Association/American Congress on Surveying and
                           Mapping form surveys for which all necessary fees
                           have been paid, dated no more than 30 days before the
                           day of the Initial Extension of Credit, certified to
                           the Collateral Agent and the issuer of the Mortgage
                           Policies in a manner satisfactory to the Collateral
                           Agent by a land surveyor duly registered and licensed
                           in the States in which the property described in such
                           surveys is located and acceptable to the Collateral
                           Agent, showing all buildings and other improvements,
                           any off-site improvements, the location of any
                           easements, parking spaces, rights of way, building
                           set-back lines and other dimensional regulations and
                           the absence of encroachments, either by such
                           improvements or on to such property, and other
                           defects, other than encroachments and other defects
                           acceptable to the Collateral Agent,

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<PAGE>

                                    (D)      engineering, soils, environmental
                           and other reports as to the properties described in
                           the Mortgages, in form and substance and from
                           professional firms acceptable to the Collateral
                           Agent,

                                    (E)      the Assignments of Leases and Rents
                           referred to in the Mortgages, duly executed by the
                           appropriate Loan Party,

                                    (F)      estoppel and consent agreements, in
                           form and substance satisfactory to the Administrative
                           Agent, executed by each of the lessors of the leased
                           Eligible Real Property Assets listed on Schedule 4.0
                           l(q) hereto, along with (1) a memorandum of lease in
                           recordable form with respect to such leasehold
                           interest, executed and acknowledge by the owner of
                           the affected Real Property, as lessor, or (2)
                           evidence that the applicable lease with respect to
                           such leasehold interest or memorandum thereof has
                           been recorded in all places necessary or desirable,
                           in the Administrative Agent's reasonable judgment, to
                           give constructive notice to third-party purchasers of
                           such leasehold interest or (3) if such leasehold
                           interest was acquired or subleased from the holder of
                           a recorded leasehold interest, the applicable
                           assignment or sublease document, executed and
                           acknowledged by such holder, in each case in form
                           sufficient to give such constructive notice upon
                           recordation and otherwise in form satisfactory to the
                           Administrative Agent,

                                    (G)      evidence of the insurance required
                           by the terms of the Mortgages,

                                    (H)      estoppel certificates executed by
                           all tenants of the Eligible Real Estate Assets,

                                    (I)      an Appraisal of each of the Real
                           Property assets described in the Mortgages, and

                                    (J)      such other consents, agreements and
                           confirmations of lessors and third parties as the
                           Administrative Agent may deem necessary or desirable
                           and evidence that all other action that the
                           Collateral Agent may deem necessary or desirable in
                           order to create valid first and subsisting Liens on
                           the property described in the Mortgages has been
                           taken.

                           (iv)     Certified copies of the resolutions of the
                  Board of Directors, general partner or managing member, as
                  applicable, of each Loan Party and of each general partner or
                  managing member (if any) of each Loan Party approving the
                  transactions contemplated by the Loan Documents and each Loan
                  Document to which it is or is to be a party, and of all
                  documents evidencing other necessary corporate action and
                  governmental and other third party approvals and consents, if
                  any, with respect to the transactions under the Loan Documents
                  and each Loan Document to which it is or is to be a party.

                           (v)      A copy of a certificate of the Secretary of
                  State (or equivalent authority) of the jurisdiction of
                  incorporation, organization or formation of each Loan Party
                  and of each general partner or managing member (if any) of
                  each Loan Party, dated reasonably near the date of the Initial
                  Extension of Credit, certifying (A) as to a true and correct
                  copy of the charter, certificate of limited partnership,
                  limited liability company agreement or other organizational
                  document of such Loan Party, general partner or managing
                  member,

                                       41

<PAGE>

                  as the case may be, and each amendment thereto on file in such
                  Secretary's office and (B) that (1) such amendments are the
                  only amendments to the charter, certificate of limited
                  partnership, limited liability company agreement or other
                  organizational document, as applicable, of such Loan Party,
                  general partner or managing member, as the case may be, on
                  file in such Secretary's office and (2) such Loan Party,
                  general partner or managing member, as the case may be, has
                  paid all franchise taxes to the date of such certificate and
                  (C) such Loan Party, general partner or managing member, as
                  the case may be, is duly incorporated, organized or formed and
                  in good standing or presently subsisting under the laws of the
                  jurisdiction of its incorporation, organization or formation.

                           (vi)     A copy of a certificate of the Secretary of
                  State (or equivalent authority) of each jurisdiction in which
                  any Loan Party or any general partner or managing member of a
                  Loan Party owns or leases property or in which the conduct of
                  its business requires it to qualify or be licensed as a
                  foreign corporation except where the failure to so qualify or
                  be licensed would not be reasonably likely to have a Material
                  Adverse Effect, dated reasonably near (but prior to) the date
                  of the Initial Extension of Credit, stating, with respect to
                  each such Loan Party, general partner or managing member, that
                  such Loan Party, general partner or managing member, as the
                  case may be, is duly qualified and in good standing as a
                  foreign corporation, limited partnership or limited liability
                  company in such State and has filed all annual reports
                  required to be filed to the date of such certificate.

                           (vii)    A certificate of each Loan Party and of each
                  general partner or managing member (if any) of each Loan
                  Party, signed on behalf of such Loan Party, general partner or
                  managing member, as applicable, by its President or a Vice
                  President and its Secretary or any Assistant Secretary (or
                  those of its general partner or managing member, if
                  applicable), dated the date of the Initial Extension of Credit
                  (the statements made in which certificate shall be true on and
                  as of the date of the Initial Extension of Credit), certifying
                  as to (A) the absence of any amendments to the constitutive
                  documents of such Loan Party, general partner or managing
                  member, as applicable, since the date of the certificate
                  referred to in Section 3.01(a)(v), (B) a true and correct copy
                  of the bylaws, operating agreement, partnership agreement or
                  other governing document of such Loan Party, general partner
                  or managing member, as applicable, as in effect on the date on
                  which the resolutions referred to in Section 3.01(a)(iv) were
                  adopted and on the date of the Initial Extension of Credit,
                  (C) the due incorporation, organization or formation and good
                  standing or valid existence of such Loan Party, general
                  partner or managing member, as applicable, as a corporation,
                  limited liability company or partnership organized under the
                  laws of the jurisdiction of its incorporation, organization or
                  formation and the absence of any proceeding for the
                  dissolution or liquidation of such Loan Party, general partner
                  or managing member, as applicable, (D) the truth of the
                  representations and warranties contained in the Loan Documents
                  as though made on and as of the date of the Initial Extension
                  of Credit and (E) the absence of any event occurring and
                  continuing, or resulting from the Initial Extension of Credit,
                  that constitutes a Default.

                           (viii)   A certificate of the Secretary or an
                  Assistant Secretary of each Loan Party (or Responsible Officer
                  of the general partner or managing member of any Loan Party)
                  and of each general partner or managing member (if any) of
                  each Loan Party certifying the names and true signatures of
                  the officers of such Loan Party, or of the general partner or
                  managing member of such Loan Party, authorized to sign each
                  Loan

                                       42

<PAGE>

                  Document to which it is or is to be a party and the other
                  documents to be delivered hereunder and thereunder.

                           (ix)     Such financial, business and other
                  information regarding each Loan Party and its Subsidiaries as
                  the Lender Parties shall have requested, including, without
                  limitation, information as to possible contingent liabilities,
                  tax matters, environmental matters, obligations under Plans,
                  Multiemployer Plans and Welfare Plans, collective bargaining
                  agreements and other arrangements with employees, audited
                  annual financial statements for the year ending December 31,
                  2002, interim financial statements dated the end of the most
                  recent fiscal quarter for which financial statements are
                  available (or, in the event the Lender Parties' due diligence
                  review reveals material changes since such financial
                  statements, as of a later date within 45 days of the day of
                  the Initial Extension of Credit).

                           (x)      Evidence of insurance naming the
                  Administrative Agent as loss payee and additional insured with
                  such responsible and reputable insurance companies or
                  associations, and in such amounts and covering such risks, as
                  is satisfactory to the Lender Parties.

                           (xi)     An opinion of Latham and Watkins LLP,
                  counsel for the Loan Parties, in substantially the form of
                  Exhibit E-l hereto and as to such other matters as any Lender
                  Party through the Administrative Agent may reasonably request.

                           (xii)    An opinion of Venable, Baetjer and Howard,
                  LLP, Maryland counsel for the Loan Parties, in substantially
                  the form of Exhibit E-2 hereto and as to such other matters as
                  any Lender Party through the Administrative Agent may
                  reasonably request.

                           (xiii)   An opinion of Shearman & Sterling LLP,
                  counsel for the Administrative Agent, in form and substance
                  satisfactory to the Administrative Agent.

                           (xiv)    A Notice of Borrowing or Notice of Issuance,
                  as applicable, and a Borrowing Base Certificate relating to
                  the Initial Extension of Credit.

                  (b)      The Lender Parties shall be satisfied with the
         corporate and legal structure and capitalization of each Loan Party and
         its Subsidiaries, including the terms and conditions of the charter and
         bylaws, operating agreement, partnership agreement or other governing
         document of each of them.

                  (c)      The Lender Parties shall be satisfied that all
         Existing Debt, other than Surviving Debt, has been prepaid, redeemed or
         defeased in full or otherwise satisfied and extinguished and that all
         Surviving Debt shall be on terms and conditions satisfactory to the
         Lender Parties.

                  (d)      (i) The Recapitalization and the IPO shall have been,
         substantially concurrently herewith, consummated, (ii) the Parent
         Guarantor shall have received net cash proceeds from the IPO in an
         amount not less than $600,000,000, and (iii) the common shares of the
         Parent Guarantor shall have been listed on the New York Stock Exchange.

                  (e)      Before and after giving effect to the transactions
         contemplated by the Loan Documents, there shall have occurred no
         Material Adverse Change since December 31,2002.

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<PAGE>

                  (f)      There shall exist no action, suit, investigation,
         litigation or proceeding affecting any Loan Party or any of its
         Subsidiaries pending or threatened before any court, governmental
         agency or arbitrator that (i) would be reasonably likely to have a
         Material Adverse Effect other than the matters described on Schedule
         4.01(f) hereto (the "DISCLOSED LITIGATION") or (ii) purports to affect
         the legality, validity or enforceability of any Loan Document or the
         consummation of the transactions contemplated thereby, and there shall
         have been no adverse change in the status, or financial effect on any
         Loan Party or any of its Subsidiaries, of the Disclosed Litigation from
         that described on Schedule 4.0 l(f) hereto.

                  (g)      All governmental and third party consents and
         approvals necessary in connection with the transactions contemplated by
         the Loan Documents shall have been obtained (without the imposition of
         any conditions that are not acceptable to the Lender Parties) and shall
         remain in effect, and no law or regulation shall be applicable in the
         reasonable judgment of the Lender Parties that restrains, prevents or
         imposes materially adverse conditions upon the transactions
         contemplated by the Loan Documents.

                  (h)      The Borrower shall have entered into the Hedge
         Agreements required under Section 5.01(p).

                  (i)      The Borrower shall have paid all accrued fees of the
         Administrative Agent and the Lender Parties and all reasonable,
         out-of-pocket expenses of the Administrative Agent (including the
         reasonable fees and expenses of counsel to the Administrative Agent).

                  SECTION 3.02. Conditions Precedent to Each Borrowing and
Issuance and Renewal. The obligation of each Lender to make an Advance (other
than a Letter of Credit Advance made by an Issuing Bank or a Lender pursuant to
Section 2.03(c)) on the occasion of each Borrowing (including the initial
Borrowing), the obligation of each Issuing Bank to issue a Letter of Credit
(including the initial issuance) or renew a Letter of Credit and the extension
of Commitments pursuant to Section 2.16 shall be subject to the further
conditions precedent that on the date of such Borrowing, issuance or renewal or
extension (a) the following statements shall be true and the Administrative
Agent shall have received for the account of such Lender or such Issuing Bank a
certificate signed by a duly authorized officer of the Borrower, dated the date
of such Borrowing, issuance or renewal or extension, stating that:

                  (i)      the representations and warranties contained in each
         Loan Document are true and correct on and as of such date, before and
         after giving effect to (A) such Borrowing, issuance or renewal or
         extension and (B) in the case of any Borrowing or issuance or renewal,
         the application of the proceeds therefrom, as though made on and as of
         such date;

                  (ii)     no Default has occurred and is continuing, or would
         result from (A) such Borrowing, issuance or renewal or extension or (B)
         in the case of any Borrowing or issuance or renewal, from the
         application of the proceeds therefrom; and

                  (iii)    for each Revolving Credit Advance or issuance or
         renewal of any Letter of Credit, (A) the Loan Value equals or exceeds
         the aggregate principal amount of the Revolving Credit Advances plus
         Letter of Credit Advances to be outstanding plus the aggregate
         Available Amount of all Letters of Credit to be outstanding after
         giving effect to such Advance or issuance or renewal, respectively, and
         (B) before and after giving effect to such Advance or issuance or
         renewal, the Parent Guarantor shall be in compliance with Sections
         5.04(b)(i) and (ii);

and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as any Lender Party through the Administrative Agent may
reasonably request in order to confirm (i) the

                                       44

<PAGE>

accuracy of the Loan Parties' representations and warranties contained in the
Loan Documents, (ii) the Loan Parties' timely compliance with the terms,
covenants and agreements set forth in the Loan Documents, (iii) the absence of
any Default and (iv) the rights and remedies of the Secured Parties or the
ability of the Loan Parties to perform their Obligations, in each case under the
Loan Documents following a change in law occurring after the date hereof that
the Administrative Agent, in its reasonable discretion, believes may negatively
affect such rights, remedies or ability to perform.

                  SECTION 3.03. Determinations Under Section 3.01. For purposes
of determining compliance with the conditions specified in Section 3.01, each
Lender Party shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lender Parties unless an
officer of the Administrative Agent responsible for the transactions
contemplated by the Loan Documents shall have received notice from such Lender
Party prior to the Initial Extension of Credit specifying its objection thereto
and, if the Initial Extension of Credit consists of a Borrowing, such Lender
Party shall not have made available to the Administrative Agent such Lender
Party's ratable portion of such Borrowing.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

                  SECTION 4.01. Representations and Warranties of the Loan
Parties. Each Loan Party represents and warrants as follows:

                  (a) Each Loan Party and each of its Subsidiaries and each
         general partner or managing member, if any, of each Loan Party (i) is a
         corporation, limited liability company or partnership duly
         incorporated, organized or formed, validly existing and in good
         standing under the laws of the jurisdiction of its incorporation,
         organization or formation, (ii) is duly qualified and in good standing
         as a foreign corporation, limited liability company or partnership in
         each other jurisdiction in which it owns or leases property or in which
         the conduct of its business requires it to so qualify or be licensed
         except where the failure to so qualify or be licensed would not be
         reasonably likely to have a Material Adverse Effect and (iii) has all
         requisite corporate, limited liability company or partnership power and
         authority (including, without limitation, all governmental licenses,
         permits and other approvals) to own or lease and operate its properties
         and to carry on its business as now conducted and as proposed to be
         conducted. Commencing with its taxable year ending December 31,2003,
         the Parent Guarantor will be organized in conformity with the
         requirements for qualification as a REIT, and its proposed method of
         operation will enable it to meet the requirements for qualification and
         taxation as a REIT under the Internal Revenue Code. All of the
         outstanding Equity Interests in the Parent Guarantor have been validly
         issued, are fully paid and non-assessable and are owned by the General
         Partner free and clear of all Liens.

                  (b) Set forth on Schedule 4.01(b) hereto is a complete and
         accurate list as of the date hereof of all Subsidiaries of each Loan
         Party, showing as of the date hereof (as to each such Subsidiary) the
         jurisdiction of its incorporation, organization or formation, the
         number of shares (or the equivalent thereof) of each class of its
         Equity Interests authorized, and the number outstanding, on the date
         hereof and the percentage of each such class of its Equity Interests
         owned (directly or indirectly) by such Loan Party and the number of
         shares (or the equivalent thereof) covered by all outstanding options,
         warrants, rights of conversion or purchase and similar rights at the
         date hereof. All of the outstanding Equity Interests in each Loan
         Party's Subsidiaries has been validly issued, are fully paid and
         non-assessable and are owned by such Loan Party or one or more of its
         Subsidiaries free and clear of all Liens.

                                       45

<PAGE>

                  (c) The execution, delivery and performance by each Loan Party
         and of each general partner or managing member (if any) of each Loan
         Party of each Loan Document to which it is or is to be a party are
         within the corporate, limited liability company or partnership powers
         of such Loan Party, general partner or managing member, have been duly
         authorized by all necessary corporate, limited liability company or
         partnership action, and do not (i) contravene the charter or bylaws,
         operating agreement, partnership agreement or other governing document
         of such Loan Party, general partner or managing member, (ii) violate
         any law, rule, regulation (including, without limitation, Regulation X
         of the Board of Governors of the Federal Reserve System), order, writ,
         judgment, injunction, decree, determination or award, (iii) conflict
         with or result in the breach of, or constitute a default or require any
         payment to be made under, any material contract, loan agreement,
         indenture, mortgage, deed of trust, lease or other instrument binding
         on or affecting any Loan Party, any of its Subsidiaries or any of their
         properties, or any general partner or managing member of any Loan Party
         or (iv) except for the Liens created under the Loan Documents, result
         in or require the creation or imposition of any Lien upon or with
         respect to any of the properties of any Loan Party or any of its
         Subsidiaries. No Loan Party or any of its Subsidiaries is in violation
         of any such law, rule, regulation, order, writ, judgment, injunction,
         decree, determination or award or in breach of any such contract, loan
         agreement, indenture, mortgage, deed of trust, lease or other
         instrument, the violation or breach of which would be reasonably likely
         to have a Material Adverse Effect.

                  (d) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         or any other third party is required for (i) the due execution,
         delivery, recordation, filing or performance by any Loan Party or any
         general partner or managing member of any Loan Party of any Loan
         Document to which it is or is to be a party or for the consummation of
         the transactions contemplated thereby, (ii) the grant by any Loan Party
         of the Liens granted by it pursuant to the Collateral Documents, (iii)
         the perfection or maintenance of the Liens created under the Collateral
         Documents (including the first priority nature thereof) or, (iv) the
         exercise by the Administrative Agent or any Lender Party of its rights
         under the Loan Documents or the remedies in respect of the Collateral
         pursuant to the Collateral Documents, except for the authorizations,
         approvals, actions, notices and filings listed on Schedule 4.0l(d)
         hereto, all of which have been duly obtained, taken, given or made and
         are in full force and effect.

                  (e) This Agreement has been, and each other Loan Document when
         delivered hereunder will have been, duly executed and delivered by each
         Loan Party and general partner or managing member (if any) of each Loan
         Party party thereto. This Agreement is, and each other Loan Document
         when delivered hereunder will be, the legal, valid and binding
         obligation of each Loan Party and general partner or managing member
         (if any) of each Loan Party party thereto, enforceable against such
         Loan Party, general partner or managing member, as the case may be, in
         accordance with its terms.

                  (f) There is no action, suit, investigation, litigation or
         proceeding affecting any Loan Party or any of its Subsidiaries or any
         general partner or managing member (if any) of any Loan Party,
         including any Environmental Action, pending or threatened before any
         court, governmental agency or arbitrator that (i) would be reasonably
         likely to have a Material Adverse Effect (other than the Disclosed
         Litigation) or (ii) purports to affect the legality, validity or
         enforceability of any Loan Document or the consummation of the
         transactions contemplated thereby, and there has been no adverse change
         in the status, or financial effect on any Loan Party or any of its
         Subsidiaries or any general partner or managing member (if any) of any
         Loan Party, of the Disclosed Litigation from that described on Schedule
         4.0l(f) hereto.

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<PAGE>

                  (g) The Consolidated balance sheets of the Parent Guarantor
         and its Subsidiaries as at December 31, 2002 and the related
         Consolidated statements of income and Consolidated statement of cash
         flows of the Parent Guarantor and its Subsidiaries for the fiscal year
         then ended, accompanied by an unqualified opinion of KPMG LLP,
         independent public accountants, and the Consolidated balance sheets of
         the Parent Guarantor and its Subsidiaries as at March 31,2003, and the
         related Consolidated statements of income and Consolidated statement of
         cash flows of the Parent Guarantor and its Subsidiaries for the three
         months then ended, duly certified by the Chief Financial Officer of the
         Parent Guarantor, copies of which have been furnished to each Lender
         Party, fairly present, subject, in the case of said balance sheet as at
         March 31, 2003, and said statements of income and cash flows for the
         three months then ended, to year-end audit adjustments, the
         Consolidated financial condition of the Parent Guarantor and its
         Subsidiaries as at such dates and the Consolidated results of
         operations of the Parent Guarantor and its Subsidiaries for the periods
         ended on such dates, all in accordance with generally accepted
         accounting principles applied on a consistent basis, and since December
         31,2002, there has been no Material Adverse Change.

                  (h) The Consolidated forecasted balance sheets, statements of
         income and statements of cash flows of the Parent Guarantor and its
         Subsidiaries delivered to the Lender Parties pursuant to Section
         3.01(a)(ix) or 5.03 were prepared in good faith on the basis of the
         assumptions stated therein, which assumptions were fair in light of the
         conditions existing at the time of delivery of such forecasts, and
         represented, at the time of delivery, the Parent Guarantor's best
         estimate of its future financial performance.

                  (i) Neither the Information Memorandum nor any other
         information, exhibit or report furnished by or on behalf of any Loan
         Party to the Administrative Agent or any Lender Party in connection
         with the negotiation and syndication of the Loan Documents or pursuant
         to the terms of the Loan Documents contained any untrue statement of a
         material fact or omitted to state a material fact necessary to make the
         statements made therein not misleading.

                  (j) No Loan Party is engaged in the business of extending
         credit for the purpose of purchasing or carrying Margin Stock, and no
         proceeds of any Advance or drawings under any Letter of Credit will be
         used to purchase or carry any Margin Stock or to extend credit to
         others for the purpose of purchasing or carrying any Margin Stock.

                  (k) Neither any Loan Party nor any of its Subsidiaries nor any
         general partner or managing member of any Loan Party, as applicable, is
         an "investment company", or an "affiliated person" of, or "promoter" or
         "principal underwriter" for, an "investment company", as such terms are
         defined in the Investment Company Act of 1940, as amended. Without
         limiting the generality of the foregoing, each Loan Party and each of
         its Subsidiaries and each general partner or managing member of any
         Loan Party, as applicable: (i) is primarily engaged, directly or
         through a wholly-owned subsidiary or subsidiaries, in a business or
         businesses other than that of (A) investing, reinvesting, owning,
         holding or trading in securities or (B) issuing face-amount
         certificates of the installment type; (ii) is not engaged in, does not
         propose to engage in and does not hold itself out as being engaged in
         the business of (A) investing, reinvesting, owning, holding or trading
         in securities or (B) issuing face-amount certificates of the
         installment type; (iii) does not own or propose to acquire investment
         securities (as defined in the Investment Company Act of 1940, as
         amended) having a value exceeding forty percent (40%) of the value of
         such company's total assets (exclusive of government securities and
         cash items) on an unconsolidated basis; (iv) has not in the past been
         engaged in the business of issuing face-amount certificates of the
         installment type; and (v) does not have any outstanding face-amount
         certificates of the installment type. Neither any Loan Party nor any of
         its Subsidiaries nor any general partner or

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<PAGE>

         managing member of any Loan Party or Subsidiary of a Loan Party that is
         a partnership or a limited liability company, as applicable, 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", as such terms are defined in the Public Utility
         Holding Company Act of 1935, as amended. Neither the making of any
         Advances, nor the issuance of any Letters of Credit, nor the
         application of the proceeds or repayment thereof by the Borrower, nor
         the consummation of the other transactions contemplated by the Loan
         Documents, will violate any provision of any such Act or any rule,
         regulation or order of the Securities and Exchange Commission
         thereunder.

                  (1) Neither any Loan Party nor any of its Subsidiaries is a
         party to any indenture, loan or credit agreement or any lease or other
         agreement or instrument or subject to any charter, corporate,
         partnership, membership or other governing restriction that would be
         reasonably likely to have a Material Adverse Effect.

                  (m) All filings and other actions necessary to perfect and
         protect the security interest in the Collateral created under the
         Collateral Documents have been duly made or taken and are in full force
         and effect, and the Collateral Documents create in favor of the
         Administrative Agent for the benefit of the Secured Parties a valid
         and, together with such filings and other actions, perfected first
         priority security interest in the Collateral, securing the payment of
         the Secured Obligations, and all filings and other actions necessary or
         desirable to perfect and protect such security interest have been duly
         taken. The Loan Parties are the legal and beneficial owners of the
         Collateral free and clear of any Lien, except for the liens and
         security interests created or permitted under the Loan Documents.

                  (n) Set forth on Schedule 4.0l(n) hereto is a complete and
         accurate list of all Existing Debt (other than Surviving Debt), showing
         as of the date hereof the obligor and the principal amount outstanding
         thereunder.

                  (o) Set forth on Schedule 4.0l(o) hereto is a complete and
         accurate list of all Surviving Debt, showing as of the date hereof the
         obligor and the principal amount outstanding thereunder, the maturity
         date thereof and the amortization schedule therefor.

                  (p) Set forth on Schedule 4.0l(p) hereto is a complete and
         accurate list of all Liens on the property or assets of any Loan Party
         or any of its Subsidiaries, showing as of the date hereof the
         lienholder thereof, the principal amount of the obligations secured
         thereby and the property or assets of such Loan Party or such
         Subsidiary subject thereto.

                  (q) Set forth on Schedule 4.0l(q) hereto is a complete and
         accurate list of all Real Property owned by any Loan Party or any of
         its Subsidiaries, showing as of the date hereof the street address,
         county or other relevant jurisdiction, state, record owner and book
         value thereof. Each Loan Party or such Subsidiary has good, marketable
         and insurable fee simple title to such Real Property, free and clear of
         all Liens, other than Liens created or permitted by the Loan Documents.

                  (r) Set forth on Schedule 4.0l(r) hereto is a complete and
         accurate list of all leases of real property under which any Loan Party
         or any of its Subsidiaries is the lessee, showing as of the date hereof
         the street address, county or other relevant jurisdiction, state,
         lessor, lessee, expiration date and annual rental cost thereof. Each
         such lease is the legal, valid and binding obligation of the lessor
         thereof, enforceable in accordance with its terms.

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<PAGE>

                  (s) Except as otherwise set forth in the environmental reports
         listed on Schedule 4.0l(s) hereto (correct copies of which have been
         made available to the Administrative Agent), the operations and
         properties of each Loan Party and each of its Subsidiaries comply in
         all material respects with all applicable Environmental Laws and
         Environmental Permits, all past non-compliance with such Environmental
         Laws and Environmental Permits has been resolved without ongoing
         obligations or costs, and no circumstances exist that could be
         reasonably likely to (i) form the basis of an Environmental Action
         against any Loan Party or any of its Subsidiaries or any of their
         properties that could have a Material Adverse Effect or (ii) cause any
         such property to be subject to any restrictions on ownership,
         occupancy, use or transferability under any Environmental Law.

                  (t) Neither the business nor the properties of any Loan Party
         or any of its Subsidiaries are affected by any fire, explosion,
         accident, strike, lockout or other labor dispute, drought, storm, hail,
         earthquake, embargo, act of God or of the public enemy or other
         casualty (whether or not covered by insurance) that could be reasonably
         likely to have a Material Adverse Effect.

                  (u) Each Loan Party has, independently and without reliance
         upon the Administrative Agent or any other Lender Party and based on
         such documents and information as it has deemed appropriate, made its
         own credit analysis and decision to enter into this Agreement (and in
         the case of the Guarantors, to give the guaranty under this Agreement)
         and each other Loan Document to which it is or is to be a party, and
         each Loan Party has established adequate means of obtaining from each
         other Loan Party on a continuing basis information pertaining to, and
         is now and on a continuing basis will be completely familiar with, the
         business, condition (financial or otherwise), operations, performance,
         properties and prospects of such other Loan Party.

                  (v) Each Loan Party is individually and together with its
         Subsidiaries, Solvent.

                  (w) Except as set forth on Schedule 4.0l(w), no Loan Party
         has made any extension of credit to any of its directors or executive
         officers in contravention of the restrictions set forth in Section
         402(a) of Sarbanes-Oxley.

                  (x) Set forth on Schedule 4.0l(x) hereto is a complete and
         accurate list of all Excluded Subsidiaries and their respective
         Excluded Subsidiary Agreements existing on the date hereof.

                                    ARTICLE V
                         COVENANTS OF THE LOAN PARTIES

                  SECTION 5.01. Affirmative Covenants. So long as any Advance or
any other Obligation of any Loan Party under any Loan Document shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, each Loan Party will:

                  (a) Compliance with Laws. Etc. Comply, and cause each of its
         Subsidiaries to comply, in all material respects, with all applicable
         laws, rules, regulations and orders, such compliance to include,
         without limitation, compliance with ERISA and the Racketeer Influenced
         and Corrupt Organizations Chapter of the Organized Crime Control Act of
         1970.

                  (b) Payment of Taxes. Etc. Pay and discharge, and cause each
         of its Subsidiaries to pay and discharge, before the same shall become
         delinquent, (i) all taxes, assessments and other material governmental
         charges or levies imposed upon it or upon its property and (ii) all
         lawful claims that, if unpaid, might by law become a Lien upon its
         property; provided, however, that neither the Loan Parties nor any of
         their Subsidiaries shall be required to pay or discharge any

                                       49
<PAGE>

         such tax, assessment, charge or claim that is being contested in good
         faith and by proper proceedings and as to which appropriate reserves
         are being maintained, unless and until any Lien resulting therefrom
         attaches to its property and becomes enforceable against its other
         creditors.

                  (c) Compliance with Environmental Laws. Comply, and cause each
         of its Subsidiaries and all lessees and other Persons operating or
         occupying its properties to comply, in all material respects, with all
         applicable Environmental Laws and Environmental Permits; obtain and
         renew and cause each of its Subsidiaries to obtain and renew all
         Environmental Permits necessary for its operations and properties; and
         conduct, and cause each of its Subsidiaries to conduct, any
         investigation, study, sampling and testing, and undertake any cleanup,
         removal, remedial or other action necessary to remove and clean up all
         Hazardous Materials from any of its properties, in accordance with the
         requirements of all Environmental Laws; provided, however, that neither
         the Loan Parties nor any of their Subsidiaries shall be required to
         undertake any such cleanup, removal, remedial or other action to the
         extent that its obligation to do so is being contested in good faith
         and by proper proceedings and appropriate reserves are being maintained
         with respect to such circumstances.

                  (d) Maintenance of Insurance. Maintain, and cause each of its
         Subsidiaries to maintain, insurance (including, with respect to the
         Eligible Real Estate Assets, the insurance required by the terms of the
         Mortgages) with responsible and reputable insurance companies or
         associations in such amounts and covering such risks as is usually
         carried by companies engaged in similar businesses and owning similar
         properties in the same general areas in which such Loan Party or such
         Subsidiaries operate.

                  (e) Preservation of Partnership or Corporate Existence, Etc.
         Preserve and maintain, and cause each of its Subsidiaries to preserve
         and maintain, its existence, legal structure, legal name, rights
         (charter and statutory), permits, licenses, approvals, privileges and
         franchises; provided, however, that (x) Maguire Partners - Glendale,
         LLC may be dissolved so long as such Subsidiary is dissolved no later
         than 90 days following the Closing Date and all of the assets of such
         Subsidiary are transferred to a Loan Party or a Person that
         simultaneously with such dissolution becomes a Loan Party and (y) the
         Loan Parties and their Subsidiaries may consummate any merger,
         consolidation or other transaction permitted under Section 5.02(d) or
         any Transfer not prohibited under Section 5.02(e), and provided further
         that no Excluded Subsidiary shall be required to preserve its existence
         or be prevented from winding-up or dissolving, if, in either case, (i)
         the non-preservation, winding-up or dissolution of such Excluded
         Subsidiary, as applicable, is (A) as a result of a transaction
         permitted under Section 5.02(d) or (B) upon or following any Transfer
         not prohibited under Section 5.02(e) in which substantially all of the
         assets of such Excluded Subsidiary were sold or otherwise disposed of
         and (ii) the failure to preserve such Excluded Subsidiary's existence
         is not otherwise disadvantageous in any material respect to the Loan
         Parties and their Subsidiaries taken as a whole.

                  (f) Visitation Rights. At any reasonable time and from time to
         time, permit any of the Agents or Lender Parties, or any Agent or
         representatives thereof, to examine and make copies of and abstracts
         from the records and books of account of, and visit the properties of,
         any Loan Party and any of its Subsidiaries, and to discuss the affairs,
         finances and accounts of any Loan Party and any of its Subsidiaries
         with any of their general partners, managing members, officers or
         directors and with their independent certified public accountants.

                  (g) Keeping of Books. Keep, and cause each of its Subsidiaries
         to keep, proper books of record and account, in which full and correct
         entries shall be made of all financial transactions

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<PAGE>

         and the assets and business of such Loan Party and each such Subsidiary
         in accordance with GAAP.

                  (h) Maintenance of Properties, Etc. Maintain and preserve, and
         cause each of its Subsidiaries to maintain and preserve, all of its
         properties that are used or useful in the conduct of its business in
         good working order and condition, ordinary wear and tear excepted and
         will from time to time make or cause to be made all appropriate
         repairs, renewals and replacement thereof except where failure to do so
         would not have a Material Adverse Effect.

                  (i) Transactions with Affiliates and Excluded Subsidiaries.
         Conduct, and cause each of its Subsidiaries to conduct, all
         transactions otherwise permitted under the Loan Documents with any of
         their Affiliates or with any Excluded Subsidiary on terms that are fair
         and reasonable and no less favorable to such Loan Party or such
         Subsidiary than it would obtain in a comparable arm's-length
         transaction with a Person not an Affiliate.

                  (j) Covenant to Guarantee Obligations and Give Security. (i)
         Upon the occurrence and during the continuance of any Default of the
         type described in Section 6.01(a) or in Section 6.0l(c) relating to
         Section 5.04, within 10 days after the request of the Collateral Agent,
         furnish to the Collateral Agent account control agreements duly
         executed by each bank or other financial institution at which the
         Borrower or any of its Subsidiaries maintains an account.

                           (ii)     Within 10 days after any Excluded Subsidiary
                  Agreement terminates or otherwise becomes ineffective as to
                  the Excluded Subsidiary party to such agreement, cause such
                  Excluded Subsidiary to duly execute and deliver to the
                  Administrative Agent a Guaranty Supplement in substantially
                  the form of Exhibit C hereto, or such other guaranty
                  supplement in form and substance satisfactory to the
                  Administrative Agent, guaranteeing the Obligations of the
                  other Loan Parties under the Loan Documents.

                           (iii)    Within 10 days after the formation or
                  acquisition of any new direct or indirect Subsidiary by any
                  Loan Party, cause each such Subsidiary (other than a
                  Subsidiary that is prohibited by the terms of any loan
                  agreement or indenture or other material agreement to which it
                  is a party from providing guarantees of the Obligations of the
                  Loan Parties under the Loan Documents), and cause each direct
                  and indirect parent of such Subsidiary (if it has not already
                  done so), to duly execute and deliver to the Administrative
                  Agent a Guaranty Supplement in substantially the form of
                  Exhibit C hereto, or such other guaranty supplement in form
                  and substance satisfactory to the Administrative Agent,
                  guaranteeing the other Loan Parties' Obligations under the
                  Loan Documents.

                           (iv)     Upon the request by the Borrower that any
                  additional Real Property and related assets (a "PROPOSED
                  BORROWING BASE PROPERTY") be included as an Eligible Real
                  Estate Asset, and such Proposed Borrowing Base Property shall
                  not already be subject to a perfected first priority Lien in
                  favor of the Collateral Agent for the benefit of the Secured
                  Parties, in each case at the Borrower's expense:

                                    (A)      within 10 days after such request,
                           furnish to the Collateral Agent (I) a description, in
                           detail satisfactory to the Collateral Agent, of the
                           Proposed Borrowing Base Property and (II) a revised
                           Schedule II hereto reflecting the addition of such
                           Proposed Borrowing Base Property, which schedule
                           shall become effective only upon satisfaction of each
                           of the conditions set forth in this Section 5.01(j).

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<PAGE>

                                    (B)      within 15 days after such request,
                           duly execute and deliver, or cause the applicable
                           Subsidiary to duly execute and deliver, to the
                           Collateral Agent mortgages, pledges, assignments,
                           security agreement supplements and other security
                           agreements, as specified by and in form and substance
                           reasonably satisfactory to the Collateral Agent
                           (including, without limitation, a Mortgage, together
                           with the Assignment of Leases and Rents referred to
                           therein, and a Security Agreement in substantially
                           the form of Exhibit F-1 hereto with respect to such
                           Proposed Borrowing Base Property), securing payment
                           of all the Obligations of the applicable Loan Party
                           under the Loan Documents and sufficient in the
                           judgment of the Collateral Agent to create Liens on
                           such Proposed Borrowing Base Property.

                                    (C)      within 30 days after such request,
                           take, and cause such Subsidiary or such parent to
                           take, whatever action (including; without limitation,
                           the recording of mortgages, the filing of Uniform
                           Commercial Code financing statements and the giving
                           of notices) may be necessary or advisable in the
                           reasonable opinion of the Collateral Agent to vest in
                           and perfect for the benefit of the Collateral Agent
                           (or in any representative of the Collateral Agent
                           designated by it) valid and subsisting Liens on such
                           Proposed Borrowing Base Property such that the same
                           shall be enforceable against all third parties in
                           accordance with their terms.

                                    (D)      as promptly as practicable after
                           such request (and in any event within 60 days after
                           such request), deliver, to the Administrative Agent
                           with respect to each parcel of such Proposed
                           Borrowing Base Property (I) a signed copy of a
                           favorable opinion, addressed to the Collateral Agent
                           and the other Secured Parties, of counsel for the
                           Loan Parties acceptable to the Collateral Agent as to
                           the mortgages, pledges, assignments, security
                           agreement supplements and security agreements (as
                           applicable) described in clause (B) above being
                           legal, valid and binding obligations of the
                           applicable Subsidiary party thereto enforceable in
                           accordance with their terms, as to the recordings,
                           filings, notices and other actions described in
                           clause (C) above being sufficient to create valid
                           perfected Liens on such Proposed Borrowing Base
                           Property and as to such other matters as the
                           Collateral Agent may reasonably request, (II) title
                           insurance policies, surveys and engineering, soils
                           and other reports, environmental assessment reports
                           and such other documents and deliveries as more fully
                           described in Section 3.01 as determined by the
                           Collateral Agent in its reasonable discretion, each
                           in scope, form and substance satisfactory to the
                           Collateral Agent, and (III) an Appraisal of such
                           Proposed Borrowing Base Property.

                           (v)      At any time and from time to time, promptly
                  execute and deliver any and all further instruments and
                  documents and take all such other action as any Agent may deem
                  necessary or desirable in obtaining the full benefits of, or
                  in perfecting and preserving the Liens of, such guaranties,
                  mortgages, pledges, assignments, security agreement
                  supplements and security agreements.

                           (vi)     In the event that the Borrower has not
                  delivered to the Collateral Agent satisfactory evidence that
                  Maguire Partners - Glendale, LLC has been dissolved in
                  compliance with Section 5.01(e), duly execute and deliver to
                  the Administrative Agent no later than the 95th day following
                  the Closing Date a Guaranty Supplement in substantially the
                  form of Exhibit C hereto, or such other guaranty supplement in
                  form and substance

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<PAGE>

                  satisfactory to the Administrative Agent, guaranteeing the
                  Obligations of the other Loan Parties under the Loan
                  Documents.

                  (k) Further Assurances. (i) Promptly upon request by any
         Agent, or any Lender Party through the Administrative Agent, correct,
         and cause each of its Subsidiaries promptly to correct, any material
         defect or error that may be discovered in any Loan Document or in the
         execution, acknowledgment, filing or recordation thereof.

                           (ii)     Promptly upon request by any Agent, or any
                  Lender Party through the Administrative Agent, do, execute,
                  acknowledge, deliver, record, re-record, file, re-file,
                  register and re-register any and all such further acts, deeds,
                  conveyances, pledge agreements, mortgages, deeds of trust,
                  trust deeds, assignments, financing statements and
                  continuations thereof, termination statements, notices of
                  assignment, transfers, certificates, assurances and other
                  instruments as any Agent, or any Lender Party through the
                  Administrative Agent, may reasonably require from time to time
                  in order to (A) carry out more effectively the purposes of the
                  Loan Documents, (B) to the fullest extent permitted by
                  applicable law, subject any Loan Party's or any of its
                  Subsidiaries' properties, assets, rights or interests to the
                  Liens now or hereafter intended to be covered by any of the
                  Collateral Documents, (C) perfect and maintain the validity,
                  effectiveness and priority of any of the Collateral Documents
                  and any of the Liens intended to be created thereunder and (D)
                  assure, convey, grant, assign, transfer, preserve, protect and
                  confirm more effectively unto the Secured Parties the rights
                  granted or now or hereafter intended to be granted to the
                  Secured Parties under any Loan Document or under any other
                  instrument executed in connection with any Loan Document to
                  which any Loan Party or any of its Subsidiaries is or is to be
                  a party, and cause each of its Subsidiaries to do so.

                           (iii)    Promptly upon the request of the Required
                  Lenders through the Administrative Agent, deliver to the
                  Collateral Agent a recent Appraisal of each Eligible Real
                  Estate Asset, provided, that the Loan Parties shall be
                  required to comply with only one such request by the Required
                  Lenders, provided further that the Loan Parties shall not be
                  required to comply with any such request if the Collateral
                  Agent shall have previously received the Appraisals
                  contemplated by Section 2.16(a).

                  (l) Cash Concentration Accounts. Upon the occurrence and
         during the continuance of any Default of the type described in Section
         6.01(a) or in Section 6.01(c) relating to Section 5.04, maintain, and
         cause each of its Subsidiaries to maintain, cash concentration accounts
         with Citibank, N.A. and lockbox accounts into which all proceeds of
         Collateral are paid with Citibank, N.A. or one or more banks acceptable
         to the Administrative Agent that have accepted the assignment of such
         accounts to the Administrative Agent for the benefit of the Secured
         Parties pursuant to the Security Agreements.

                  (m) Performance of Material Contracts. Perform and observe all
         the terms and provisions of each Material Contract to be performed or
         observed by it, maintain each such Material Contract in full force and
         effect, enforce each such Material Contract in accordance with its
         terms, take all such action to such end as may be from time to time
         requested by the Administrative Agent and, upon request of the
         Administrative Agent, make to each other party to each such Material
         Contract such demands and requests for information and reports or for
         action as any Loan Party or any of its Subsidiaries is entitled to make
         under such Material Contract, and cause each of its Subsidiaries to do
         so.

                                       53

<PAGE>

                  (n) Compliance with Terms of Leaseholds. Make all payments and
         otherwise perform all obligations in respect of all leases of real
         property to which the Borrower or any of its Subsidiaries is a party as
         a lessee, keep such leases in full force and effect and not allow such
         leases or lapse or be terminated or any rights to renew such leases to
         be forfeited or cancelled, notify the Administrative Agent of any
         default by any party with respect to such leases and cooperate with the
         Administrative Agent in all respects to cure any such default, and
         cause each of its Subsidiaries to do so.

                  (o) Interest Rate Hedging. Enter into prior to the Closing
         Date, and maintain at all times thereafter, interest rate Hedge
         Agreements (i) with Persons acceptable to the Administrative Agent,
         (ii) providing an interest-rate swap for a fixed rate of interest
         acceptable to the Administrative Agent, (iii) covering a notional
         amount of not less than an amount equal to 66 2/3% of Consolidated Debt
         for Borrowed Money of the Parent Guarantor and (iv) otherwise on terms
         and conditions acceptable to the Administrative Agent.

                  (p) Maintenance of REIT Status. In the case of the General
         Partner, at all times, conduct its affairs and the affairs of its
         Subsidiaries in a manner so as to continue to qualify as a REIT and
         elect to be treated as a REIT.

                  (q) NYSE Listing. In the case of the General Partner, at all
         times (i) cause its common shares to be duly listed on the New York
         Stock Exchange and (ii) timely file all reports required to be filed by
         it in connection therewith.

                  (r) Sarbanes-Oxley. Comply at all times with Section 402(a) of
         Sarbanes-Oxley.

                  (s) Consents to Assignment of Assigned Agreements. Deliver to
         the Collateral Agent within 45 days after the Closing Date the consents
         to the assignment of the Assigned Agreements referred to in the
         Security Agreements in substantially the form of Exhibit B to the
         Security Agreements or otherwise in form and substance satisfactory to
         the Collateral Agent, duly executed by each party to such Assigned
         Agreements other than the Loan Parties.

                  SECTION 5.02. Negative Covenants. So long as any Advance or
any other Obligation of any Loan Party under any Loan Document shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, no Loan Party will, at any time:

                  (a) Liens, Etc. Create, incur, assume or suffer to exist, or
         permit any of its Subsidiaries to create, incur, assume or suffer to
         exist, any Lien on or with respect to any of its properties of any
         character (including, without limitation, accounts) whether now owned
         or hereafter acquired, or sign or file or suffer to exist, or permit
         any of its Subsidiaries to sign or file or suffer to exist, under the
         Uniform Commercial Code of any jurisdiction, a financing statement that
         names such Loan Party or any of its Subsidiaries as debtor, or sign or
         suffer to exist, or permit any of its Subsidiaries to sign or suffer to
         exist, any security agreement authorizing any secured party thereunder
         to file such financing statement, or assign, or permit any of its
         Subsidiaries to assign, any accounts or other right to receive income,
         except, in the case of the Loan Parties (other than the Parent
         Guarantor) and their respective Subsidiaries:

                           (i)      Liens created under the Loan Documents;

                           (ii)     Permitted Liens;

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<PAGE>

                           (iii)    Liens existing on the date hereof and
                  described on Schedule 4.01(p) hereto;

                           (iv)     purchase money Liens upon or in equipment
                  acquired or held by such Loan Party or any of its Subsidiaries
                  in the ordinary course of business to secure the purchase
                  price of such equipment or to secure Debt incurred solely for
                  the purpose of financing the acquisition of any such equipment
                  to be subject to such Liens, or Liens existing on any such
                  equipment at the time of acquisition (other than any such
                  Liens created in contemplation of such acquisition that do not
                  secure the purchase price), or extensions, renewals or
                  replacements of any of the foregoing for the same or a lesser
                  amount; provided, however, that no such Lien shall extend to
                  or cover any property other than the equipment being acquired,
                  and no such extension, renewal or replacement shall extend to
                  or cover any property not theretofore subject to the Lien
                  being extended, renewed or replaced; and provided further that
                  the aggregate principal amount of the Debt secured by Liens
                  permitted by this clause (iv) shall not exceed the amount
                  permitted under Section 5.02(b)(iii)(B) at any time
                  outstanding;

                           (v)      Liens arising in connection with Capitalized
                  Leases permitted under Section 5.02(b)(iii)(C), provided that
                  no such Lien shall extend to or cover any Collateral or assets
                  other than the assets subject to such Capitalized Leases;

                           (vi)     Liens on property of a Person existing at
                  the time such Person is merged into or consolidated with any
                  Loan Party or any Subsidiary of any Loan Party or becomes a
                  Subsidiary of any Loan Party, provided that such Liens were
                  not created in contemplation of such merger, consolidation or
                  acquisition and do not extend to any assets other than those
                  of the Person so merged into or consolidated with such Loan
                  Party or such Subsidiary or acquired by such Loan Party or
                  such Subsidiary;

                           (vii)    other Liens securing Non-Recourse Debt
                  permitted under Section 5.02(b)(iii)(G), provided that no such
                  Lien shall extend to or cover any Collateral; and

                           (viii)   the replacement, extension or renewal of any
                  Lien permitted by clause (iii) above upon or in the same
                  property theretofore subject thereto or the replacement,
                  extension or renewal (without increase in the amount or change
                  in any direct or contingent obligor) of the Debt secured
                  thereby.

                  (b) Debt. Create, incur, assume or suffer to exist, or permit
         any of its Subsidiaries to create, incur, assume or suffer to exist,
         any Debt, except:

                           (i)      in the case of each Loan Party (other than
                  the Parent Guarantor), Debt owed to any other Loan Party
                  (other than the Parent Guarantor) or any wholly-owned
                  Subsidiary of any Loan Party, provided that, in each case,
                  such Debt (y) shall be on terms acceptable to the
                  Administrative Agent and (z) shall be evidenced by promissory
                  notes in form and substance satisfactory to the Administrative
                  Agent, which promissory notes shall (unless payable to the
                  Borrower) by their terms be subordinated to the Obligations of
                  the Loan Parties under the Loan Documents;

                           (ii)     in the case of any Subsidiary of a Loan
                  Party, Debt owed to any Loan Party (other than the Parent
                  Guarantor) or to any wholly-owned Subsidiary of any Loan
                  Party, provided that, in each case, such Debt (y) shall be on
                  terms acceptable to the Administrative Agent and (z) shall be
                  evidenced by promissory notes in form and

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<PAGE>

                  substance satisfactory to the Administrative Agent, which
                  promissory notes shall (unless payable to the Borrower) by
                  their terms be subordinate to the Obligations of the Loan
                  Parties under the Loan Documents;

                           (iii)    in the case of each Loan Party (other than
                  the Parent Guarantor) and its Subsidiaries,

                                    (A)      Debt under the Loan Documents,

                                    (B)      Debt secured by Liens permitted by
                           Section 5.02(a)(iv) not to exceed in the aggregate
                           $25,000,000 at any time outstanding,

                                    (C)      (1) Capitalized Leases not to
                           exceed in the aggregate $50,000,000 at any time
                           outstanding, and (2) in the case of Capitalized
                           Leases to which any Subsidiary of a Loan Party is a
                           party, Debt of such Loan Party of the type described
                           in clause (i) of the definition of "DEBT"
                           guaranteeing the Obligations of such Subsidiary under
                           such Capitalized Leases,

                                    (D)      the Surviving Debt described on
                           Schedule 4.01(o) hereto and any Refinancing Debt
                           extending, refunding or refinancing such Surviving
                           Debt,

                                    (E)      Debt in respect of Hedge Agreements
                           entered into by the Borrower and designed to hedge
                           against fluctuations in interest rates or foreign
                           exchange rates incurred in the ordinary course of
                           business and consistent with prudent business
                           practice with the aggregate Agreement Value thereof
                           not to exceed $25,000,000 at any time outstanding,

                                    (F)      unsecured Debt incurred in the
                           ordinary course of business for borrowed money,
                           maturing within one year from the date created, and
                           aggregating, on a Consolidated basis, not more than
                           $50,000,000 at any one time outstanding, and

                                    (G)      Non-Recourse Debt the incurrence of
                           which would not result in a Default under Section
                           5.04 or any other provision of this Agreement,
                           provided that neither the Borrower nor any of its
                           Subsidiaries is obligated for the payment of such
                           Debt other than to the extent of (i) any security
                           therefor and (ii) customary carve-outs, including,
                           without limitation, fraud, criminal activity,
                           misapplication of funds, ad valorem taxes and
                           environmental matters;

                           (iv)     in the case of the Parent Guarantor, Debt
                  under the Loan Documents; and

                           (v)      in the case of the TRS Subsidiaries,
                  Contingent Obligations incurred in the ordinary course of
                  business of the TRS Subsidiaries arising under management,
                  leasing and development agreements entered into by the TRS
                  Subsidiaries relating to the provision of administrative and
                  operational, management, leasing and/or development services,
                  so long as the aggregate amount of such Contingent Obligations
                  does not at any time exceed 5% of Total Asset Value at such
                  time.

                  (c) Change in Nature of Business. Make, or permit any of its
         Subsidiaries to make, any material change in the nature of its business
         as carried on at the date hereof; or engage in, or permit any of its
         Subsidiaries to engage in, any business other than ownership,
         development and

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<PAGE>

         management of commercial real estate properties in the United States
         consistent in quality with the Real Property, and other business
         activities incidental thereto.

                  (d) Mergers, Etc. Merge or consolidate with or into, or
         convey, transfer, lease or otherwise dispose of (whether in one
         transaction or in a series of transactions) all or substantially all of
         its assets (whether now owned or hereafter acquired) to, any Person, or
         permit any of its Subsidiaries to do so; provided, however, that (i)
         any Subsidiary of a Loan Party may merge or consolidate with or into,
         or dispose of assets to, any other Subsidiary of such Loan Party
         (provided that if one or more Subsidiaries is also a Loan Party, any
         such Loan Party shall be the surviving entity) or any other Loan Party
         (provided that such Loan Party or, in the case of any Loan Party other
         than the Borrower, another Loan Party shall be the surviving entity),
         and (ii) any Loan Party may merge with any other Person so long as such
         Loan Party or another Loan Party is the surviving entity, provided, in
         each case, that no Default shall have occurred and be continuing at the
         time of such proposed transaction or would result therefrom.

                  (e) Sales, Etc. of Real Property. (i) In the case of the
         Parent Guarantor, sell, lease (other than enter into Tenancy Leases),
         transfer or otherwise dispose of, or grant any option or other right to
         purchase, lease (other than any option or other right to enter into
         Tenancy Leases) or otherwise acquire any assets and (ii) in the case of
         the Loan Parties (other than the Parent Guarantor), sell, lease (other
         than enter into Tenancy Leases), transfer or otherwise dispose of, or
         grant any option or other right to purchase, lease (other than any
         option or other right to enter into Tenancy Leases) or otherwise
         acquire, or permit any of its Subsidiaries to sell, lease, transfer or
         otherwise dispose of, or grant any option or other right to purchase,
         lease or otherwise acquire (each action described in clauses (i) and
         (ii) of this subsection (e) being a "TRANSFER"), any Real Property or
         Real Properties (or any Equity Interests in connection therewith) in
         any six month period for an amount greater than $50,000,000, unless the
         Loan Parties are in compliance with the covenants contained in Section
         5.04, calculated based on the financial statements most recently
         delivered to the Lender Parties pursuant to Section 5.03 (A) as though
         such transaction had occurred at the beginning of the four-quarter
         period covered thereby and (B) on a pro forma basis (excluding in each
         instance from such calculation the Real Property or Real Properties
         that are the subject of the transaction), as evidenced by a certificate
         of the Chief Financial Officer (or such person performing similar
         functions) of the Borrower delivered to the Administrative Agent prior
         to such transaction demonstrating such compliance, provided, that there
         shall be no Transfer of any Eligible Real Estate Asset without the
         prior written consent of all of the Lenders.

                  (f) Investments in Other Persons. Make or hold, or permit any
         of its Subsidiaries to make or hold, any Investment in any Person other
         than:

                           (i)      Investments by the Loan Parties and their
                  Subsidiaries in their Subsidiaries outstanding on the date
                  hereof and additional investments in wholly-owned Subsidiaries
                  and, in the case of the Loan Parties (other than the Parent
                  Guarantor) and their respective Subsidiaries, Investments in
                  Real Property (including by asset or Equity Interest
                  acquisitions) of which an amount not to exceed 10% of Total
                  Asset Value at any time shall be invested in Non-Office Real
                  Property, in each case subject, where applicable, to the
                  limitations set forth in Section 5.02(f)(iv);

                           (ii)     Investments in Cash Equivalents;

                           (iii)    Investments consisting of intercompany Debt
                  permitted under Section 5.02(b)(i) or (ii);

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<PAGE>

                           (iv)     Investments consisting of the following
                  items so long as (y) the aggregate amount outstanding, without
                  duplication, of all Investments described in this subsection
                  does not exceed, at any time, 25% of Total Asset Value at such
                  time, and (z) the aggregate amount of each of the following
                  items of Investments does not exceed the specified percentage
                  of Total Asset Value set forth below:

                                    (A)      Loans, advances and extensions of
                           credit to any Person (other than an officer or
                           director of the Parent Guarantor and its
                           Subsidiaries) so long as the aggregate amount of such
                           Investments does not at any time exceed 10% of Total
                           Asset Value at such time, in each case after giving
                           effect to such Investments,

                                    (B)      unimproved real estate, so long as
                           the aggregate amount of such Investment, calculated
                           on the basis of cost, does not at any time exceed
                           5.0% of Total Asset Value at such time,

                                    (C)      Development Property that is being
                           constructed or developed as CBD Office Real Property,
                           but is not yet completed (including such assets that
                           such Person has contracted to purchase for
                           development with or without options to terminate the
                           purchase agreement), so long as the aggregate amount
                           of such Investment, calculated on the basis of the
                           greater of actual cost or budgeted cost, does not at
                           any time exceed 15% of Total Asset Value at such
                           time,

                                    (D)      Investments in Subsidiaries that
                           are not wholly-owned Subsidiaries of any Loan Party
                           so long as the aggregate amount of such Investments
                           outstanding does not at any time exceeds 15% of Total
                           Asset Value at such time; and

                           (v)      Investments by the Borrower in Hedge
                  Agreements permitted under Section 5.02(b)(iii)(E).

                  (g) Restricted Payments. In the case of the Parent Guarantor,
         declare or pay any dividends, purchase, redeem, retire, defease or
         otherwise acquire for value any of its Equity Interests now or
         hereafter outstanding, return any capital to its stockholders, partners
         or members (or the equivalent Persons thereof) as such, make any
         distribution of assets, Equity Interests, obligations or securities to
         its stockholders, partners or members (or the equivalent Persons
         thereof) as such or issue or sell any Equity Interests; provided,
         however, so long as (i) no Default of the type described in Section
         6.01 (a) or (e) shall have occurred and be continuing and (ii) the
         Notes and all interest and other amounts payable under Loan Documents
         shall not have been declared due and payable pursuant to Section 6.01,
         then the Parent Guarantor may declare and pay dividends (y) to the
         extent the aggregate amount of such payments over the preceding twelve
         months is less than 95% of Funds From Operations or (z) as may
         otherwise be required in order to comply with Section 5.01(p) and to
         avoid the imposition of income or excise taxes on the Parent Guarantor.

                  (h) Amendments of Constitutive Documents. Amend, or permit any
         of its Subsidiaries to amend, its limited partnership agreement,
         certificate of incorporation or bylaws or other constitutive documents.

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<PAGE>

                  (i) Accounting Changes. Make or permit, or permit any of its
         Subsidiaries to make or permit, any change in (i) accounting policies
         or reporting practices, except as required by generally accepted
         accounting principles, or (ii) Fiscal Year.

                  (j) Speculative Transactions. Engage, or permit any of its
         Subsidiaries to engage, in any transaction involving commodity options
         or futures contracts or any similar speculative transactions.

                  (k) Payment Restrictions Affecting Subsidiaries. Directly or
         indirectly, enter into or suffer to exist, or permit any of its
         Subsidiaries to enter into or suffer to exist, any agreement or
         arrangement limiting the ability of any of its Subsidiaries to declare
         or pay dividends or other distributions in respect of its Equity
         Interests or repay or prepay any Debt owed to, make loans or advances
         to, or otherwise transfer assets to or invest in, the Borrower or any
         Subsidiary of the Borrower (whether through a covenant restricting
         dividends, loans, asset transfers or investments, a financial covenant
         or otherwise), except (i) the Loan Documents, (ii) any agreement or
         instrument evidencing Surviving Debt, and (iii) any agreement in effect
         at the time such Subsidiary becomes a Subsidiary of the Borrower, so
         long as such agreement was not entered into solely in contemplation of
         such Person becoming a Subsidiary of the Borrower.

                  (l) Amendment, Etc., of Material Contracts. Cancel or
         terminate any Material Contract or consent to or accept any
         cancellation or termination thereof, amend or otherwise modify any
         Material Contract or give any consent, waiver or approval thereunder,
         waive any default under or breach of any Material Contract, agree in
         any manner to any other amendment, modification or change of any term
         or condition of any Material Contract or take any other action in
         connection with any Material Contract that would impair the value of
         the interest or rights of any Loan Party thereunder or that would
         impair the interest or rights of the Administrative Agent or any Lender
         Party, or permit any of its Subsidiaries to do any of the foregoing.

                  (m) Negative Pledge. Enter into or suffer to exist, or permit
         any Subsidiary Guarantor to enter into or suffer to exist, any
         agreement prohibiting or conditioning the creation or assumption of any
         Lien upon any of its property or assets except (i) in favor of the
         Secured Parties or (ii) in connection with (A) any Surviving Debt and
         any Refinancing Debt extending, refunding or refinancing such Surviving
         Debt, (B) any purchase money Debt permitted by Section 5.02(b)(iii)(B)
         solely to the extent that the agreement or instrument governing such
         Debt prohibits a Lien on the property acquired with the proceeds of
         such Debt, (C) any Capitalized Lease permitted by Section
         5.02(b)(iii)(C) solely to the extent that such Capitalized Lease
         prohibits a Lien on the property subject thereto, or (D) any Debt
         outstanding on the date any Subsidiary of the Borrower becomes such a
         Subsidiary (so long as such agreement was not entered into solely in
         contemplation of such Subsidiary becoming a Subsidiary of the
         Borrower).

                  (n) Parent Guarantor as Holding Company. In the case of the
         Parent Guarantor, not enter into or conduct any business, or engage in
         any activity (including, without limitation, any action or transaction
         that is required or restricted with respect to the Borrower and its
         Subsidiaries under Sections 5.01 and 5.02 without regard to any of the
         enumerated exceptions to such covenants), other than (i) the holding of
         the Equity Interests of the Borrower; (ii) the performance of its
         duties as general partner of the Borrower; (iii) the performance of its
         Obligations (subject to the limitations set forth in the Loan
         Documents) under each Loan Document to which it is a party; (iv) the
         making of equity Investments in the Borrower and its Subsidiaries,
         provided each such Investment (A) shall be on terms acceptable to the
         Agent and (B) shall be evidenced by stock certificates, promissory
         notes or instruments in form and substance satisfactory to the Agent;
         (v) the maintenance of any deposit accounts required in connection with
         the conduct by the Parent

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<PAGE>

         Guarantor of business or activities otherwise permitted under the Loan
         Documents; and (vi) activities incidental to each of the foregoing.

                  (o) Excluded Subsidiaries. Enter into or suffer to exist, or
         permit any Excluded Subsidiary to enter into or suffer to exist, any
         agreement prohibiting or conditioning (i) the guaranty by such Excluded
         Subsidiary of the Obligations of the Loan Parties under the Loan
         Documents or (ii) the creation or assumption of any Lien upon any of
         such Excluded Subsidiary's property or assets except (x) as would be
         permitted under Section 5.02(m) hereof or (y) pursuant to an Excluded
         Subsidiary Agreement in effect on the later of the Effective Date and
         the date on which such Excluded Subsidiary becomes a Subsidiary of such
         Loan Party.

                  SECTION 5.03. Reporting Requirements. So long as any Advance
or any other Obligation of any Loan Party under any Loan Document shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, the Borrower will furnish to the Administrative Agent
and the Lender Parties:

                  (a) Default Notice. As soon as possible and in any event
         within two days after the Borrower has or should have had knowledge of
         the occurrence of each Default or any event, development or occurrence
         reasonably likely to have a Material Adverse Effect continuing on the
         date of such statement, a statement of the Chief Financial Officer (or
         person performing similar functions) of the Parent Guarantor setting
         forth details of such Default or such event, development or occurrence
         and the action that the Parent Guarantor has taken and proposes to take
         with respect thereto.

                  (b) Annual Financials. As soon as available and in any event
         within 90 days after the end of each Fiscal Year, a copy of the annual
         audit report for such year for the Parent Guarantor and its
         Subsidiaries, including therein Consolidated balance sheets of the
         Parent Guarantor and its Subsidiaries as of the end of such Fiscal Year
         and Consolidated statements of income and a Consolidated statement of
         cash flows of the Parent Guarantor and its Subsidiaries for such Fiscal
         Year, in each case accompanied by an opinion acceptable to the Required
         Lenders of KPMG LLP or other independent public accountants of
         recognized standing acceptable to the Required Lenders, together with
         (i) a certificate of such accounting firm to the Lender Parties stating
         that in the course of the regular audit of the business of the Parent
         Guarantor and its Subsidiaries, which audit was conducted by such
         accounting firm in accordance with generally accepted auditing
         standards, such accounting firm has obtained no knowledge that a
         Default has occurred and is continuing, or if, in the opinion of such
         accounting firm, a Default has occurred and is continuing, a statement
         as to the nature thereof, (ii) a schedule in form satisfactory to the
         Administrative Agent of the computations used by such accountants in
         determining, as of the end of such Fiscal Year, compliance with the
         covenants contained in Section 5.04, provided that in the event of any
         change in GAAP used in the preparation of such financial statements,
         the Parent Guarantor shall also provide, if necessary for the
         determination of compliance with Section 5.04, a statement of
         reconciliation conforming such financial statements to GAAP and (iii) a
         certificate of the Chief Financial Officer (or person performing
         similar functions) of the Parent Guarantor stating that no Default has
         occurred and is continuing or, if a default has occurred and is
         continuing, a statement as to the nature thereof and the action that
         the Parent Guarantor has taken and proposes to take with respect
         thereto.

                  (c) Quarterly Financials. As soon as available and in any
         event within 45 days after the end of each of the first three quarters
         of each Fiscal Year, Consolidated balance sheets of the Parent
         Guarantor and its Subsidiaries as of the end of such quarter and
         Consolidated statements of income and a Consolidated statement of cash
         flows of the Parent Guarantor and its Subsidiaries

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<PAGE>

         for the period commencing at the end of the previous fiscal quarter and
         ending with the end of such fiscal quarter and Consolidated statements
         of income and a Consolidated statement of cash flows of the Parent
         Guarantor and its Subsidiaries for the period commencing at the end of
         the previous Fiscal Year and ending with the end of such quarter,
         setting forth in each case in comparative form the corresponding
         figures for the corresponding date or period of the preceding Fiscal
         Year, all in reasonable detail and duly certified (subject to normal
         year-end audit adjustments) by the Chief Financial Officer (or person
         performing similar functions) of the Parent Guarantor as having been
         prepared in accordance with GAAP, together with (i) a certificate of
         said officer stating that no Default has occurred and is continuing or,
         if a Default has occurred and is continuing, a statement as to the
         nature thereof and the action that the Parent Guarantor has taken and
         proposes to take with respect thereto and (ii) a schedule in form
         satisfactory to the Administrative Agent of the computations used by
         the Parent Guarantor in determining compliance with the covenants
         contained in Section 5.04, provided that in the event of any change in
         GAAP used in the preparation of such financial statements, the Parent
         Guarantor shall also provide, if necessary for the determination of
         compliance with Section 5.04, a statement of reconciliation conforming
         such financial statements to GAAP.

                  (d) Borrowing Base Certificate. As soon as available and in
         any event within 10 days after the end of each month, a Borrowing Base
         Certificate, as at the end of the previous month, certified by the
         Chief Financial Officer (or person performing similar functions) of the
         Parent Guarantor.

                  (e) Annual Budgets. As soon as available and in any event no
         later than 30 days after the end of each Fiscal Year, forecasts
         prepared by management of the Parent Guarantor, in form satisfactory to
         the Administrative Agent, of balance sheets, income statements and cash
         flow statements on a monthly basis for the then current Fiscal Year and
         on an annual basis for each Fiscal Year thereafter until the
         Termination Date.

                  (f) Material Litigation. Promptly after the commencement
         thereof, notice of all actions, suits, investigations, litigation and
         proceedings before any court or governmental department, commission,
         board, bureau, agency or instrumentality, domestic or foreign,
         affecting any Loan Party or any of its Subsidiaries of the type
         described in Section 4.0l(f), and promptly after the occurrence
         thereof, notice of any adverse change in the status or the financial
         effect on any Loan Party or any of its Subsidiaries of the Disclosed
         Litigation from that described on Schedule 4.01(f) hereto.

                  (g) Securities Reports. Promptly after the sending or filing
         thereof, copies of all proxy statements, financial statements and
         reports that any Loan Party or any of its Subsidiaries sends to its
         stockholders, and copies of all regular, periodic and special reports,
         and all registration statements, that any Loan Party or any of its
         Subsidiaries files with the Securities and Exchange Commission or any
         governmental authority that may be substituted therefor, or with any
         national securities exchange.

                  (h) Real Property. As soon as available and in any event
         within 30 days after the end of each Fiscal Year, a report
         supplementing Schedules 4.01(p) and 4.01(q) hereto, including an
         identification of all owned and leased real property disposed of by any
         Loan Party or any of its Subsidiaries during such Fiscal Year, a list
         and description (including the street address, county or other relevant
         jurisdiction, state, record owner, book value thereof and, in the case
         of leases of property, lessor, lessee, expiration date and annual
         rental cost thereof) of all Real Property acquired or leased during
         such Fiscal Year and a description of such other changes in the

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<PAGE>

         information included in such Schedules as may be necessary for such
         Schedules to be accurate and complete.

                  (i) Environmental Conditions. Promptly after the assertion or
         occurrence of any Environmental Action against any Loan Party or any of
         its Subsidiaries or of any noncompliance in any material respect by any
         Loan Party or any of its Subsidiaries with any Environmental Law or
         Environmental Permit, provide the Administrative Agent with notice
         thereof.

                  (j) Other Information. Promptly, such other information
         respecting the business, condition (financial or otherwise),
         operations, performance, properties or prospects of any Loan Party or
         any of its Subsidiaries as the Administrative Agent, or any Lender
         Party through the Administrative Agent, may from time to time
         reasonably request.

                  SECTION 5.04. Financial Covenants. So long as any Advance or
any other Obligation of any Loan Party under any Loan Document shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, the Parent Guarantor will:

                  (a) Parent Guarantor Financial Covenants.

                           (i)      Maximum Total Leverage Ratio: Maintain at
                  all times a Leverage Ratio of not more than 60%.

                           (ii)     Minimum Tangible Net Worth: Maintain at all
                  times an excess of Consolidated total tangible assets (without
                  giving effect, after the Closing Date, to depreciation, if
                  any, of land and any improvements located thereon) over
                  Consolidated total liabilities, in each case, of the Parent
                  Guarantor and its Subsidiaries of not less than the sum of
                  $250,000,000 plus an amount equal to 75% of the proceeds of
                  all issuances or sales of Equity Interests of the Parent
                  Guarantor or any of its Subsidiaries consummated following the
                  Closing Date.

                           (iii)    Minimum Interest Coverage Ratio: Maintain at
                  the end of each fiscal quarter of the Parent Guarantor an
                  Interest Coverage Ratio of not less than 2.0:1.0.

                           (iv)     Minimum Fixed Charge Coverage Ratio.
                  Maintain at the end of each fiscal quarter of the Parent
                  Guarantor a Fixed Charge Coverage Ratio of not less than
                  1.75:1.00.

                  (b) Borrowing Base Financial Covenants.

                           (i)      Maximum Facility Exposure to Borrowing Base
                  Asset Value: Not permit at any time the Facility Exposure at
                  such time to exceed the Loan Value at such time.

                           (ii)     Minimum Implied Debt Service Coverage Ratio:
                  Maintain at the end of each fiscal quarter of the Parent
                  Guarantor an Implied Debt Service Coverage Ratio of not less
                  than 1.5:1.0.

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                                   ARTICLE VI
                               EVENTS OF DEFAULT

                  SECTION 6.01. Events of Default. If any of the following
events ("EVENTS OF DEFAULT") shall occur and be continuing:

                  (a) (i) the Borrower shall fail to pay any principal of any
         Advance when the same shall become due and payable or (ii) the Borrower
         shall fail to pay any interest on any Advance, or any Loan Party shall
         fail to make any other payment under any Loan Document, in each case
         under this clause (ii) within three Business Days after the same
         becomes due and payable; or

                  (b) any representation or warranty made by any Loan Party (or
         any of its officers or the officers of its general partner or managing
         member, as applicable) under or in connection with any Loan Document
         shall prove to have been incorrect in any material respect when made;
         or

                  (c) the Borrower shall fail to perform or observe any term,
         covenant or agreement contained in Section 2.14, 5.01 (d), (e), (f),
         (i), (j), (o), (p), (q) or (r), 5.02, 5.03 or 5.04; or

                  (d) any Loan Party shall fail to perform or observe any other
         term, covenant or agreement contained in any Loan Document on its part
         to be performed or observed if such failure shall remain unremedied for
         15 days after the earlier of the date on which (i) a Responsible
         Officer becomes aware of such failure or (ii) written notice thereof
         shall have been given to the Borrower by the Administrative Agent or
         any Lender Party; or

                  (e) any Loan Party or any of its Subsidiaries shall fail to
         pay any principal of, premium or interest on or any other amount
         payable in respect of any Debt of such Loan Party or such Subsidiary
         (as the case may be) that is outstanding in a principal amount (or, in
         the case of any Hedge Agreement, an Agreement Value) of at least
         $10,000,000 either individually or in the aggregate (such Debt, whether
         the obligation of one or more of the Loan Parties or their respective
         Subsidiaries, and whether the subject of one or more separate debt
         instruments or agreements, exclusive of Debt outstanding hereunder is
         referred to herein as "MATERIAL DEBT") but excluding Debt outstanding
         hereunder), when the same becomes due and payable (whether by scheduled
         maturity, required prepayment, acceleration, demand or otherwise); or
         any other event shall occur or condition shall exist under any
         agreement or instrument relating to any such Material Debt, if the
         effect of such event or condition is to accelerate, or to permit the
         acceleration of, the maturity of such Material Debt or otherwise to
         cause, or to permit the holders thereof to cause, such Material Debt to
         mature; or any such Material Debt shall be declared to be due and
         payable or required to be prepaid or redeemed (other than by a
         regularly scheduled required prepayment or redemption), purchased or
         defeased, or an offer to prepay, redeem, purchase or defease such
         Material Debt shall be required to be made, in each case prior to the
         stated maturity thereof; or

                  (f) any Loan Party or any of its Subsidiaries shall generally
         not pay its debts as such debts become due, or shall admit in writing
         its inability to pay its debts generally, or shall make a general
         assignment for the benefit of creditors; or any proceeding shall be
         instituted by or against any Loan Party or any of its Subsidiaries
         seeking to adjudicate it a bankrupt or insolvent, or seeking
         liquidation, winding up, reorganization, arrangement, adjustment,
         protection, relief, or composition of it or its debts under any law
         relating to bankruptcy, insolvency or reorganization or relief of
         debtors, or seeking the entry of an order for relief or the appointment
         of a receiver, trustee, or other similar official for it or for any
         substantial part of its property and, in the case of any such
         proceeding instituted against it (but not instituted by it) that is
         being diligently contested

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         by it in good faith, either such proceeding shall remain undismissed or
         unstayed for a period of 30 days or any of the actions sought in such
         proceeding (including, without limitation, the entry of an order for
         relief against, or the appointment of a receiver, trustee, custodian or
         other similar official for, it or any substantial part of its property)
         shall occur; or any Loan Party or any of its Subsidiaries shall take
         any corporate action to authorize any of the actions set forth above in
         this subsection (f); or

                  (g) any judgments or orders, either individually or in the
         aggregate, for the payment of money in excess of $10,000,000 shall be
         rendered against any Loan Party or any of its Subsidiaries and either
         (i) enforcement proceedings shall have been commenced by any creditor
         upon such judgment or order or (ii) there shall be any period of 10
         consecutive days during which a stay of enforcement of such judgment or
         order, by reason of a pending appeal or otherwise, shall not be in
         effect; or

                  (h) any non-monetary judgment or order shall be rendered
         against any Loan Party or any of its Subsidiaries that could have a
         Material Adverse Effect, and there shall be any period of 10
         consecutive days during which a stay of enforcement of such judgment or
         order, by reason of a pending appeal or otherwise, shall not be in
         effect; or

                  (i) any provision of any Loan Document after delivery thereof
         pursuant to Section 3.01 or 5.01(j) shall for any reason cease to be
         valid and binding on or enforceable against any Loan Party party to it,
         or any such Loan Party shall so state in writing; or

                  (j) any Collateral Document or financing statement after
         delivery thereof pursuant to Section 3.01 or 5.01(j) shall for any
         reason (other than pursuant to the terms thereof) cease to create a
         valid and perfected first priority lien on and security interest in the
         Collateral purported to be covered thereby; or

                  (k) a Change of Control shall occur; or

                  (l) any ERISA Event shall have occurred with respect to a Plan
         and the sum (determined as of the date of occurrence of such ERISA
         Event) of the Insufficiency of such Plan and the Insufficiency of any
         and all other Plans with respect to which an ERISA Event shall have
         occurred and then exist (or the liability of the Loan Parties and the
         ERISA Affiliates related to such ERISA Event) exceeds $10,000,000; or

                  (m) any Loan Party or any ERISA Affiliate shall have been
         notified by the sponsor of a Multiemployer Plan that it has incurred
         Withdrawal Liability to such Multiemployer Plan in an amount that, when
         aggregated with all other amounts required to be paid to Multiemployer
         Plans by the Loan Parties and the ERISA Affiliates as Withdrawal
         Liability (determined as of the date of such notification), exceeds
         $10,000,000 or requires payments exceeding $2,000,000 per annum; or

                  (n) any Loan Party or any ERISA Affiliate shall have been
         notified by the sponsor of a Multiemployer Plan that such Multiemployer
         Plan is in reorganization or is being terminated, within the meaning of
         Title IV of ERISA, and as a result of such reorganization or
         termination the aggregate annual contributions of the Loan Parties and
         the ERISA Affiliates to all Multiemployer Plans that are then in
         reorganization or being terminated have been or will be increased over
         the amounts contributed to such Multiemployer Plans for the plan years
         of such Multiemployer Plans immediately preceding the plan year in
         which such reorganization or termination occurs by an amount exceeding
         $2,000,000;

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then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Commitments of each Lender Party and the obligation of each Lender
Party to make Advances (other than Letter of Credit Advances by an Issuing Bank
or a Lender pursuant to Section 2.03(c)) and of each Issuing Bank to issue
Letters of Credit to be terminated, whereupon the same shall forthwith
terminate, and (ii) shall at the request, or may with the consent, of the
Required Lenders, (A) by notice to the Borrower, declare the Notes, all interest
thereon and all other amounts payable under this Agreement and the other Loan
Documents to be forthwith due and payable, whereupon the Notes, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower, (B) by notice to each party
required under the terms of any agreement in support of which a Letter of Credit
is issued, request that all Obligations under such agreement be declared to be
due and payable and (C) by notice to each Issuing Bank, direct such Issuing Bank
to deliver a Default Termination Notice to the beneficiary of each Letter of
Credit issued by it, and each Issuing Bank shall deliver such Default
Termination Notices; provided, however, that in the event of an actual or deemed
entry of an order for relief with respect to the Borrower under any Bankruptcy
Law, (y) the Commitments of each Lender Party and the obligation of each Lender
Party to make Advances (other than Letter of Credit Advances by an Issuing Bank
or a Lender pursuant to Section 2.03(c)) and of each Issuing Bank to issue
Letters of Credit shall automatically be terminated and (z) the Notes, all such
interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrower.

                  SECTION 6.02. Actions in Respect of the Letters of Credit upon
Default. If any Event of Default shall have occurred and be continuing, the
Administrative Agent may, or shall at the request of the Required Lenders,
irrespective of whether it is taking any of the actions described in Section
6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such
demand the Borrower will, pay to the Administrative Agent on behalf of the
Lender Parties in same day funds at the Administrative Agent's office designated
in such demand, for deposit in the L/C Cash Collateral Account, an amount equal
to the aggregate Available Amount of all Letters of Credit then outstanding. If
at any time the Administrative Agent or the Issuing Bank determines that any
funds held in the L/C Cash Collateral Account are subject to any right or claim
of any Person other than the Administrative Agent and the Lender Parties with
respect to the Obligations of the Loan Parties under the Loan Documents, or that
the total amount of such funds is less than the aggregate Available Amount of
all Letters of Credit, the Borrower will, forthwith upon demand by the
Administrative Agent, pay to the Administrative Agent, as additional funds to be
deposited and held in the L/C Cash Collateral Account, an amount equal to the
excess of (a) such aggregate Available Amount over (b) the total amount of
funds, if any, then held in the L/C Cash Collateral Account that the
Administrative Agent, as the case may be, determines to be free and clear of any
such right and claim. Upon the drawing of any Letter of Credit for which funds
are on deposit in the L/C Cash Collateral Account, such funds shall be applied
to reimburse the relevant Issuing Bank or Lenders, as applicable, to the extent
permitted by applicable law.

                                   ARTICLE VII
                                    GUARANTY

                  SECTION 7.01. Guaranty; Limitation of Liability. (a) Each
Guarantor hereby absolutely, unconditionally and irrevocably guarantees the
punctual payment when due, whether at scheduled maturity or on any date of a
required prepayment or by acceleration, demand or otherwise, of all Obligations
of the Borrower and each other Loan Party now or hereafter existing under or in
respect of the Loan Documents (including, without limitation, any extensions,
modifications, substitutions, amendments or renewals of any or all of the
foregoing Obligations), whether direct or indirect, absolute or contingent, and
whether for principal, interest, premiums, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such Obligations being the "GUARANTEED
OBLIGATIONS"), and agrees to pay

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any and all expenses (including, without limitation, fees and expenses of
counsel) incurred by the Administrative Agent or any other Secured Party in
enforcing any rights under this Agreement or any other Loan Document. Without
limiting the generality of the foregoing, each Guarantor's liability shall
extend to all amounts that constitute part of the Guaranteed Obligations and
would be owed by any other Loan Party to any Secured Party under or in respect
of the Loan Documents but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such other Loan Party.

                  (b) Each Guarantor, the Administrative Agent and each other
Lender Party and, by its acceptance of the benefits of this Guaranty, each other
Secured Party, hereby confirms that it is the intention of all such Persons that
this Guaranty and the Obligations of each Guarantor hereunder not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
foreign, federal or state law to the extent applicable to this Guaranty and the
Obligations of each Guarantor hereunder. To effectuate the foregoing intention,
the Guarantors, the Administrative Agent, the other Lenders Parties and, by
their acceptance of the benefits of this Guaranty, the other Secured Parties
hereby irrevocably agree that the Obligations of each Guarantor under this
Guaranty at any time shall be limited to the maximum amount as will result in
the Obligations of such Guarantor under this Guaranty not constituting a
fraudulent transfer or conveyance.

                  (c) Each Guarantor hereby unconditionally and irrevocably
agrees that in the event any payment shall be required to be made to any Secured
Party under this Guaranty or any other guaranty, such Guarantor will contribute,
to the maximum extent permitted by law, such amounts to each other Guarantor and
each other guarantor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Loan Documents.

                  SECTION 7.02. Guaranty Absolute. Each Guarantor guarantees
that the Guaranteed Obligations will be paid strictly in accordance with the
terms of this Agreement and the other Loan Documents, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Administrative Agent or any other Secured
Party with respect thereto. The Obligations of each Guarantor under or in
respect of this Guaranty are independent of the Guaranteed Obligations or any
other Obligations of any other Loan Party under or in respect of this Agreement
or the other the Loan Documents, and a separate action or actions may be brought
and prosecuted against each Guarantor to enforce this Guaranty, irrespective of
whether any action is brought against the Borrower or any other Loan Party or
whether the Borrower or any other Loan Party is joined in any such action or
actions. The liability of each Guarantor under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and each Guarantor
hereby irrevocably waives any defenses it may now have or hereafter acquire in
any way relating to, any or all of the following:

                  (a) any lack of validity or enforceability of any Loan
         Document or any agreement or instrument relating thereto;

                  (b) any change in the time, manner or place of payment of, or
         in any other term of, all or any of the Guaranteed Obligations or any
         other Obligations of any other Loan Party under or in respect of the
         Loan Documents, or any other amendment or waiver of or any consent to
         departure from any Loan Document, including, without limitation, any
         increase in the Guaranteed Obligations resulting from the extension of
         additional credit to the Borrower, any other Loan Party or any of their
         Subsidiaries or otherwise;

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                  (c) any taking, exchange, release or non-perfection of any
         collateral, or any taking, release or amendment or waiver of, or
         consent to departure from, any other guaranty, for all or any of the
         Guaranteed Obligations;

                  (d) any manner of application of collateral, or proceeds
         thereof, to all or any of the Guaranteed Obligations, or any manner of
         sale or other disposition of any collateral for all or any of the
         Guaranteed Obligations or any other Obligations of any Loan Party under
         the Loan Documents or any other assets of any Loan Party or any of its
         Subsidiaries;

                  (e) any change, restructuring or termination of the corporate
         structure or existence of any Loan Party or any of its Subsidiaries;

                  (f) any failure of the Administrative Agent or any other
         Secured Party to disclose to any Loan Party any information relating to
         the business, condition (financial or otherwise), operations,
         performance, properties or prospects of any other Loan Party now or
         hereafter known to the Administrative Agent or such other Secured Party
         (each Guarantor waiving any duty on the part of the Administrative
         Agent and each other Secured Party to disclose such information);

                  (g) the failure of any other Person to execute or deliver this
         Agreement, any other Loan Document, any Guaranty Supplement (as
         hereinafter defined) or any other guaranty or agreement or the release
         or reduction of liability of any Guarantor or other guarantor or surety
         with respect to the Guaranteed Obligations; or

                  (h) any other circumstance (including, without limitation, any
         statute of limitations) or any existence of or reliance on any
         representation by the Administrative Agent or any other Secured Party
         that might otherwise constitute a defense available to, or a discharge
         of, any Loan Party or any other guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by any Secured Party or any other Person upon the
insolvency, bankruptcy or reorganization of the Borrower or any other Loan Party
or otherwise, all as though such payment had not been made.

                  SECTION 7.03. Waivers and Acknowledgments. (a) Each Guarantor
hereby unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance,
default, acceleration, protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that the
Administrative Agent or any other Secured Party protect, secure, perfect or
insure any Lien or any property subject thereto or exhaust any right or take any
action against any Loan Party or any other Person or any collateral.

                  (b) Each Guarantor hereby unconditionally and irrevocably
waives any right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether existing
now or in the future.

                  (c) Each Guarantor hereby unconditionally and irrevocably
waives (i) any defense arising by reason of any claim or defense based upon an
election of remedies by the Administrative Agent or any other Secured Party that
in any manner impairs, reduces, releases or otherwise adversely affects the
subrogation, reimbursement, exoneration, contribution or indemnification rights
of such Guarantor or other rights of such Guarantor to proceed against any of
the other Loan Parties, any other guarantor or any

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other Person or any collateral and (ii) any defense based on any right of
set-off or counterclaim against or in respect of the Obligations of such
Guarantor hereunder.

                  (d) Each Guarantor acknowledges that the Administrative Agent
may, without notice to or demand upon such Guarantor and without affecting the
liability of such Guarantor under this Guaranty, foreclose under any mortgage by
nonjudicial sale, and each Guarantor hereby waives any defense to the recovery
by the Administrative Agent and the other Secured Parties against such Guarantor
of any deficiency after such nonjudicial sale and any defense or benefits that
may be afforded by Sections 580a and 580d of the California Code of Civil
Procedure or any statute or law in any other jurisdiction having similar effect.
Each Guarantor irrevocably waives any right (including without limitation any
such right arising under California Civil Code Section 2815) to revoke this
Guaranty as to future transactions giving rise to any Guaranteed Obligations.

                  (e) Each Guarantor hereby unconditionally and irrevocably
waives any duty on the part of the Administrative Agent or any other Secured
Party to disclose to such Guarantor any matter, fact or thing relating to the
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower, any other Loan Party or any of their
Subsidiaries now or hereafter known by the Administrative Agent or such other
Secured Party.

                  (f) Each Guarantor acknowledges that it will receive
substantial direct and indirect benefits from the financing arrangements
contemplated by this Agreement and the other Loan Documents and that the waivers
set forth in Section 7.02 and this Section 7.03 are knowingly made in
contemplation of such benefits.

                  SECTION 7.04. Subrogation. Each Guarantor hereby
unconditionally and irrevocably agrees not to exercise any rights that it may
now have or hereafter acquire against the Borrower, any other Loan Party or any
other insider guarantor that arise from the existence, payment, performance or
enforcement of such Guarantor's Obligations under or in respect of this
Guaranty, this Agreement or any other Loan Document, including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification and any right to participate in any claim or remedy of any
Secured Party against the Borrower, any other Loan Party or any other insider
guarantor or any collateral, whether or not such claim, remedy or right arises
in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from the Borrower, any other Loan Party
or any other insider guarantor, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account of
such claim, remedy or right, unless and until all of the Guaranteed Obligations
and all other amounts payable under this Guaranty shall have been paid in full
in cash, all Letters of Credit shall have expired or been terminated and the
Commitments shall have expired or been terminated. If any amount shall be paid
to any Guarantor in violation of the immediately preceding sentence at any time
prior to the latest of (a) the payment in full in cash of the Guaranteed
Obligations and all other amounts payable under this Guaranty, (b) the
Termination Date and (c) the latest date of expiration or termination of all
Letters of Credit, such amount shall be received and held in trust for the
benefit of the Secured Parties, shall be segregated from other property and
funds of such Guarantor and shall forthwith be paid or delivered to the
Administrative Agent in the same form as so received (with any necessary
endorsement or assignment) to be credited and applied to the Guaranteed
Obligations and all other amounts payable under this Guaranty, whether matured
or unmatured, in accordance with the terms of the Loan Documents. If (i) any
Guarantor shall make payment to any Secured Party of all or any part of the
Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other
amounts payable under this Guaranty shall have been paid in full in cash, (iii)
the Termination Date shall have occurred and (iv) all Letters of Credit shall
have expired or been terminated, the Administrative Agent and the other Secured
Parties will, at such Guarantor's request and expense, execute and deliver to
such Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to

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evidence the transfer by subrogation to such Guarantor of an interest in the
Guaranteed Obligations resulting from such payment made by such Guarantor
pursuant to this Guaranty.

                  SECTION 7.05. Guaranty Supplements. Upon the execution and
delivery by any Person of a Guaranty Supplement, (i) such Person shall be
referred to as an "ADDITIONAL GUARANTOR" and shall become and be a Guarantor
hereunder, and each reference in this Agreement to a "Guarantor" or a "Loan
Party" shall also mean and be a reference to such Additional Guarantor, and each
reference in any other Loan Document to a "Guarantor" shall also mean and be a
reference to such Additional Guarantor, and (ii) each reference herein to "this
Agreement", "this Guaranty", "hereunder", "hereof or words of like import
referring to this Agreement and this Guaranty, and each reference in any other
Loan Document to the "Loan Agreement", "Guaranty", "thereunder", "thereof or
words of like import referring to this Agreement and this Guaranty, shall mean
and be a reference to this Agreement and this Guaranty as supplemented by such
Guaranty Supplement.

                  SECTION 7.06. Indemnification by Guarantors. (a) Without
limitation on any other Obligations of any Guarantor or remedies of the
Administrative Agent or the Secured Parties under this Agreement, this Guaranty
or the other Loan Documents, each Guarantor shall, to the fullest extent
permitted by law, indemnify, defend and save and hold harmless the
Administrative Agent, each Secured Party and each of their Affiliates and their
respective officers, directors, employees, agents and advisors (each, an
"INDEMNIFIED PARTY") from and against, and shall pay on demand, any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party in connection with or as a
result of any failure of any Guaranteed Obligations to be the legal, valid and
binding obligations of any Loan Party enforceable against such Loan Party in
accordance with their terms.

                  (b)      Each Guarantor hereby also agrees that none of the
Indemnified Parties shall have any liability (whether direct or indirect, in
contract, tort or otherwise) to any of the Guarantors or any of their respective
Affiliates or any of their respective officers, directors, employees, agents and
advisors, and each Guarantor hereby agrees not to assert any claim against any
Indemnified Party on any theory of liability, for special, indirect,
consequential or punitive damages arising out of or otherwise relating to the
Facilities, the actual or proposed use of the proceeds of the Advances or the
Letters of Credit, the Loan Documents or any of the transactions contemplated by
the Loan Documents.

                  SECTION 7.07. Subordination. (a) Each Guarantor hereby
subordinates any and all debts, liabilities and other Obligations owed to such
Guarantor by each other Loan Party (the "SUBORDINATED OBLIGATIONS") to the
Guaranteed Obligations to the extent and in the manner hereinafter set forth in
this Section 7.07.

                  (b)      Prohibited Payments, Etc. Except during the
continuance of a Default (including the commencement and continuation of any
proceeding under any Bankruptcy Law relating to any other Loan Party), each
Guarantor may receive regularly scheduled payments from any other Loan Party on
account of the Subordinated Obligations. After the occurrence and during the
continuance of any Default (including the commencement and continuation of any
proceeding under any Bankruptcy Law relating to any other Loan Party), however,
unless the Administrative Agent otherwise agrees, no Guarantor shall demand,
accept or take any action to collect any payment on account of the Subordinated
Obligations.

                  (c)      Prior Payment of Guaranteed Obligations. In any
proceeding under any Bankruptcy Law relating to any other Loan Party, each
Guarantor agrees that the Secured Parties shall be entitled to receive payment
in full in cash of all Guaranteed Obligations (including all interest and
expenses accruing after the commencement of a proceeding under any Bankruptcy
Law, whether or not

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constituting an allowed claim in such proceeding ("POST PETITION INTEREST"))
before such Guarantor receives payment of any Subordinated Obligations.

                  (d)      Turn-Over. After the occurrence and during the
continuance of any Default (including the commencement and continuation of any
proceeding under any Bankruptcy Law relating to any other Loan Party), each
Guarantor shall, if the Administrative Agent so requests, collect, enforce and
receive payments on account of the Subordinated Obligations as trustee for the
Secured Parties and deliver such payments to the Administrative Agent on account
of the Guaranteed Obligations (including all Post Petition Interest), together
with any necessary endorsements or other instruments of transfer, but without
reducing or affecting in any manner the liability of such Guarantor under the
other provisions of this Guaranty.

                  (e)      Administrative Agent Authorization. After the
occurrence and during the continuance of any Default (including the commencement
and continuation of any proceeding under any Bankruptcy Law relating to any
other Loan Party), the Administrative Agent is authorized and empowered (but
without any obligation to so do), in its discretion, (i) in the name of each
Guarantor, to collect and enforce, and to submit claims in respect of,
Subordinated Obligations and to apply any amounts received thereon to the
Guaranteed Obligations (including any and all Post Petition Interest), and (ii)
to require each Guarantor (A) to collect and enforce, and to submit claims in
respect of, Subordinated Obligations and (B) to pay any amounts received on such
obligations to the Administrative Agent for application to the Guaranteed
Obligations (including any and all Post Petition Interest).

                  SECTION 7.08. Continuing Guaranty. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) the payment in full in cash of the Guaranteed Obligations and all
other amounts payable under this Guaranty, (ii) the Termination Date and (iii)
the latest date of expiration or termination of all Letters of Credit, (b) be
binding upon the Guarantors, their successors and assigns and (c) inure to the
benefit of and be enforceable by the Administrative Agent and the other Secured
Parties and their successors, transferees and assigns.

                                  ARTICLE VIII
                                   THE AGENTS

                  SECTION 8.01. Authorization and Action. Each Lender Party (in
its capacities as a Lender and as an Issuing Bank (if applicable) and on behalf
of itself and its Affiliates as potential Hedge Banks) hereby appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement and the other Loan Documents as
are delegated to such Agent by the terms hereof and thereof, together with such
powers and discretion as are reasonably incidental thereto. As to any matters
not expressly provided for by the Loan Documents (including, without limitation,
enforcement or collection of the Notes), no Agent shall be required to exercise
any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from
acting) upon the instructions of the Required Lenders, and such instructions
shall be binding upon all Lender Parties and all holders of Notes; provided,
however, that no Agent shall be required to take any action that exposes such
Agent to personal liability or that is contrary to this Agreement or applicable
law. Each Agent agrees to give to each Lender Party prompt notice of each notice
given to it by the Borrower pursuant to the terms of this Agreement.
Notwithstanding anything to the contrary in any Loan Document, no Person
identified as a syndication agent, documentation agent, senior manager, lead
arranger or book running manager, in such Person's capacity as such, shall have
any obligations or duties to any Loan Party, the Administrative Agent or any
other Secured Party under any of such Loan Documents.

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                  SECTION 8.02. Agents' Reliance, Etc. Neither any Agent nor any
of its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them under or in connection with the Loan
Documents, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, each Agent: (a) in the
case of the Administrative Agent, may treat the payee of any Note as the holder
thereof until the Administrative Agent receives and accepts an Assignment and
Acceptance entered into by the Lender that is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, or, in the case of any other
Agent, such Agent has received notice from the Administrative Agent that it has
received and accepted such Assignment and Acceptance, in each case as provided
in Section 9.07; (b) may consult with legal counsel (including counsel for any
Loan Party), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants or experts; (c)
makes no warranty or representation to any Lender Party and shall not be
responsible to any Lender Party for any statements, warranties or
representations (whether written or oral) made in or in connection with the Loan
Documents; (d) shall not have any duty to ascertain or to inquire as to the
performance, observance or satisfaction of any of the terms, covenants or
conditions of any Loan Document on the part of any Loan Party or the existence
at any time of any Default under the Loan Documents or to inspect the property
(including the books and records) of any Loan Party; (e) shall not be
responsible to any Lender Party for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; and (f) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telegram, telecopy or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

                  SECTION 8.03. CNAI and Affiliates. With respect to its
Commitments, the Advances made by it and the Notes issued to it, CNAI shall have
the same rights and powers under the Loan Documents as any other Lender Party
and may exercise the same as though it were not the Administrative Agent or the
Collateral Agent; and the term "Lender Party" or "Lender Parties" shall, unless
otherwise expressly indicated, include CNAI in its individual capacity. CNAI and
its affiliates may accept deposits from, lend money to, act as trustee under
indentures of, accept investment banking engagements from and generally engage
in any kind of business with, any Loan Party, any Subsidiary of any Loan Party
and any Person that may do business with or own securities of any Loan Party or
any such Subsidiary, all as if CNAI were not the Administrative Agent or the
Collateral Agent and without any duty to account therefor to the Lender Parties.

                  SECTION 8.04. Lender Party Credit Decision. Each Lender Party
acknowledges that it has, independently and without reliance upon any Agent or
any other Lender Party and based on the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender Party also acknowledges that it will, independently and
without reliance upon any Agent or any other Lender Party 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.

                  SECTION 8.05. Indemnification by Lender Parties, (a) Each
Lender Party severally agrees to indemnify each Agent (to the extent not
promptly reimbursed by the Borrower) from and against such Lender Party's
ratable share (determined as provided below) of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against such Agent in any way relating to or
arising out of the Loan Documents or any action taken or omitted by such Agent
under the Loan Documents (collectively, the "INDEMNIFIED COSTS"); provided,
however, that no Lender Party shall

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be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from any Agent's gross negligence or willful misconduct as found in a final,
non-appealable judgment by a court of competent jurisdiction. Without limitation
of the foregoing, each Lender Party agrees to reimburse each Agent promptly upon
demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Borrower under Section
9.04, to the extent that such Agent is not promptly reimbursed for such costs
and expenses by the Borrower. In the case of any investigation, litigation or
proceeding giving rise to any Indemnified Costs, this Section 8.05 applies
whether any such investigation, litigation or proceeding is brought by any
Lender Party or any other Person.

                  (b)      Each Lender Party severally agrees to indemnify each
Issuing Bank (to the extent not promptly reimbursed by the Borrower) from and
against such Lender Party's ratable share (determined as provided below) of any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Issuing
Bank in any way relating to or arising out of the Loan Documents or any action
taken or omitted by such Issuing Bank under the Loan Documents; provided,
however, that no Lender Party shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Issuing Bank's gross
negligence or willful misconduct as found in a final, non-appealable judgment by
a court of competent jurisdiction. Without limitation of the foregoing, each
Lender Party agrees to reimburse such Issuing Bank promptly upon demand for its
ratable share of any costs and expenses (including, without limitation, fees and
expenses of counsel) payable by the Borrower under Section 9.04, to the extent
that such Issuing Bank is not promptly reimbursed for such costs and expenses by
the Borrower.

                  (c)      For purposes of this Section 8.05, the Lender
Parties' respective ratable shares of any amount shall be determined, at any
time, according to their respective Revolving Credit Commitments at such time.
The failure of any Lender Party to reimburse any Agent or any Issuing Bank, as
the case may be, promptly upon demand for its ratable share of any amount
required to be paid by the Lender Parties to such Agent or such Issuing Bank, as
the case may be, as provided herein shall not relieve any other Lender Party of
its obligation hereunder to reimburse such Agent or such Issuing Bank, as the
case may be, for its ratable share of such amount, but no Lender Party shall be
responsible for the failure of any other Lender Party to reimburse such Agent or
such Issuing Bank, as the case may be, for such other Lender Party's ratable
share of such amount. Without prejudice to the survival of any other agreement
of any Lender Party hereunder, the agreement and obligations of each Lender
Party contained in this Section 8.05 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other
Loan Documents.

                  SECTION 8.06. Successor Agents. Any Agent may resign at any
time by giving written notice thereof to the Lender Parties and the Borrower and
may be removed at any time with or without cause by the Required Lenders;
provided, however, that any removal of the Administrative Agent will not be
effective until it has been replaced as Collateral Agent and released from all
obligations in respect thereof. Anything herein to the contrary notwithstanding,
the Administrative Agent shall resign if at any time the Administrative Agent is
not a Lender having a Revolving Credit Commitment equal to the lesser of
$10,000,000 or the Revolving Credit Commitment of the next highest Lender (or
such ratably lesser amount if the Revolving Credit Commitments have been reduced
in accordance with this Agreement). Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor Agent, which
appointment shall, provided that no Default has occurred and is continuing, be
subject to the consent of the Borrower, such consent not to be unreasonably
withheld or delayed. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring Agent's giving of notice of resignation or the Required Lenders'
removal

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of the retiring Agent, then the retiring Agent may, on behalf of the Lender
Parties, appoint a successor Agent, which shall be a commercial bank organized
under the laws of the United States or of any State thereof and having a
combined capital and surplus of at least $250,000,000, which appointment shall,
provided that no Default has occurred and is continuing, be subject to the
consent of the Borrower, such consent not to be unreasonably withheld or
delayed. Upon the acceptance of any appointment as an Agent hereunder by a
successor Agent, and, in the case of a successor Collateral Agent, upon the
execution and filing or recording of such financing statements, or amendments
thereto, and such amendments or supplements to the Mortgages, and such other
instruments or notices, as may be necessary or desirable, or as the Required
Lenders may request, in order to continue the perfection of the Liens granted or
purported to be granted by the Collateral Documents, such successor Agent shall
succeed to and become vested with all the rights, powers, discretion, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations under the Loan Documents. If within 45 days
after written notice is given of the retiring Agent's resignation or removal
under this Section 8.06 no successor Agent shall have been appointed and shall
have accepted such appointment, then on such 45th day (i) the retiring Agent's
resignation or removal shall become effective, (ii) the retiring Agent shall
thereupon be discharged from its duties and obligations under the Loan Documents
and (iii) the Required Lenders shall thereafter perform all duties of the
retiring Agent under the Loan Documents until such time, if any, as the Required
Lenders appoint a successor Agent as provided above. After any retiring Agent's
resignation or removal hereunder as an Agent shall have become effective, the
provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was an Agent under this Agreement.

                                   ARTICLE IX
                                 MISCELLANEOUS

                  SECTION 9.01. Amendments, Etc. No amendment or waiver of any
provision of this Agreement or the Notes or any other Loan Document, nor consent
to any departure by any Loan Party therefrom, shall in any event be effective
unless the same shall be in writing and signed (or, in the case of the
Collateral Documents, consented to) by the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no amendment, waiver
or consent shall, unless in writing and signed by all of the Lenders (other than
any Lender Party that is, at such time, a Defaulting Lender), do any of the
following at any time: (i) waive any of the conditions specified in Section 3.01
or, in the case of the Initial Extension of Credit, Section 3.02, (ii) change
the number of Lenders or the percentage of (x) the Commitments, (y) the
aggregate unpaid principal amount of the Advances or (z) the aggregate Available
Amount of outstanding Letters of Credit that, in each case, shall be required
for the Lenders or any of them to take any action hereunder, (iii) release the
Borrower with respect to the Obligations or reduce or limit the obligations of
any Guarantor under Article VII or release such Guarantor or otherwise limit
such Guarantor's liability with respect to the Guaranteed Obligations, (iv)
release any individual Eligible Real Estate Asset or all or substantially all of
the Collateral, in each case in any transaction or series of related
transactions, or permit the creation, incurrence, assumption or existence of any
Lien on any individual Eligible Real Estate Asset or all or substantially all of
the Collateral, in each case in any transaction or series of related
transactions, to secure any Obligations other than Obligations owing to the
Secured Parties under the Loan Documents, (v) amend this Section 9.01, (vi)
increase the Commitments of the Lenders or subject the Lenders to any additional
obligations, (vii) reduce the principal of, or interest on, the Notes or any
fees or other amounts payable hereunder, (vii) postpone any date fixed for any
payment of principal of, or interest on, the Notes or any fees or other amounts
payable hereunder or amend Section 2.06, or (ix) limit the liability of any Loan
Party under any of the Loan Documents; provided further that no amendment,
waiver or consent shall, unless in writing and signed by each Issuing Bank, as
the case may be, in addition to the Lenders required above to take such action,
affect the rights or obligations of the Issuing Banks, as the case may be, under
this Agreement; and provided further that no amendment, waiver or

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consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above to take such action, affect the rights or
duties of the Administrative Agent under this Agreement or the other Loan
Documents.

                  SECTION 9.02. Notices, Etc, (a) All notices and other
communications provided for hereunder shall be either (x) in writing (including
telecopier or telegraphic communication) and mailed, telecopied, telegraphed or
delivered or (y) as and to the extent set forth in Section 9.02(b) and in the
proviso to this Section 9.02(a), in an electronic medium and delivered as set
forth in Section 9.02(b), if to the Borrower, at its address at 555 West Fifth
Street, Suite 5000, Los Angeles, CA 90013-1010, Attention: Dallas Lucas, Chief
Financial Officer; if to any Initial Lender, at its Domestic Lending Office
specified opposite its name on Schedule I hereto; if to any other Lender Party,
at its Domestic Lending Office specified in the Assignment and Acceptance
pursuant to which it became a Lender Party; if to the Initial Issuing Bank, at
its address at One Wachovia Center, 6th Floor, 301 South College Street,
Charlotte, North Carolina 28288-0737, Attention: Rex Rudy; and if to the
Administrative Agent or the Collateral Agent, at its address at Two Perms Way,
New Castle, Delaware 19720, Attention: Bank Loan Syndications Department; or, as
to the Borrower or any Agent, at such other address as shall be designated by
such party in a written notice to the other parties and, as to each other party,
at such other address as shall be designated by such party in a written notice
to the Borrower and the Administrative Agent. All such notices and
communications shall, when mailed, telecopied, telegraphed or e-mailed, be
effective when deposited in the mails, telecopied, delivered to the telegraph
company or confirmed by e-mail, respectively, except that notices and
communications to the Administrative Agent pursuant to Article II, III or VIII
shall not be effective until received by the Administrative Agent. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of an original executed
counterpart thereof. The Collateral Agent shall notify each of the Ground
Lessors (as defined in the Mortgages) of the occurrence of any Event of Default
hereunder of which the Collateral Agent has actual knowledge by registered or
certified mail to such Ground Lessor's address set forth in the Participation
Agreement or Subject Lease to which it is a party; on the Closing Date the
addresses of such Ground Lessors are: The Pasadena Community Development
Commission, 100 N. Garfield Ave., Rm. 222, Pasadena, California 91109; and The
Cerritos Redevelopment Agency, Civic Center, Bloomfield Avenue at 183rd Street,
Cerritos, California 90703, Attention: Executive Director. Notwithstanding
anything herein to the contrary, the failure of the Collateral Agent to provide
such notice to such Ground Lessors shall not impair or otherwise affect any of
the rights and remedies of the Secured Parties under the Loan Documents or
applicable law.

                  (b)      So long as CNAI is the Administrative Agent,
materials required to be delivered pursuant to Section 5.03(a), (b), (c) and (f)
shall be delivered to the Administrative Agent in an electronic medium in a
format acceptable to the Administrative Agent and the Lender Parties by e-mail
at oploanswebadmin@citigroup.com. The Borrower agrees that the Administrative
Agent may make such materials, as well as any other written information,
documents, instruments and other material relating to the Borrower, any Loan
Party, any of their Subsidiaries or any other materials or matters relating to
this Agreement, the Notes or any of the transactions contemplated hereby
(collectively, the "COMMUNICATIONS") available to the Lender Parties by posting
such notices on "e-Disclosure" (the "PLATFORM"), the Administrative Agent's
internet delivery system that is part of Fixed Income Direct, Global Fixed
Income's primary web portal. Although the primary web portal is secured with a
dual firewall and a User ID/Password Authorization System and the Platform is
secured through a single user per deal authorization method whereby each user
may access the Platform only on a deal-by-deal basis, the Borrower acknowledges
that (i) the distribution of material through an electronic medium is not
necessarily secure and that there are confidentiality and other risks associated
with such distribution, (ii) the Platform is provided "as is" and "as available"
and (iii) neither the Administrative Agent nor any of its Affiliates warrants
the accuracy, adequacy or completeness of the Communications or the Platform and

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each expressly disclaims liability for errors or omissions in the Communications
or the Platform. No warranty of any kind, express, implied or statutory,
including, without limitation, any warranty of merchantability, fitness for a
particular purpose, non-infringement of third party rights or freedom from
viruses or other code defects, is made by the Administrative Agent or any of its
Affiliates in connection with the Platform.

                  (c)      Each Lender Party agrees that notice to it (as
provided in the next sentence) (a "NOTICE") specifying that any Communications
have been posted to the Platform shall constitute effective delivery of such
information, documents or other materials to such Lender Party for purposes of
this Agreement, provided that, if requested by any Lender Party, the
Administrative Agent shall deliver a copy of the Communications to such Lender
Party by e-mail or telecopier. Each Lender Party agrees (i) to notify the
Administrative Agent in writing of such Lender Party's e-mail address to which a
Notice may be sent by electronic transmission (including by electronic
communication) on or before the date such Lender Party becomes a party to this
Agreement (and from time to time thereafter to ensure that the Administrative
Agent has on record an effective e-mail address for such Lender Party) and (ii)
that any Notice may be sent to such e-mail address.

                  SECTION 9.03. No Waiver; Remedies. No failure on the part of
any Lender Party or the Administrative Agent to exercise, and no delay in
exercising, any right hereunder or under any Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

                  SECTION 9.04. Costs and Expenses. (a) Each Loan Party agrees
jointly and severally to pay on demand (i) all reasonable out-of-pocket costs
and expenses of each Agent in connection with the preparation, execution,
delivery, administration, modification and amendment of the Loan Documents
(including, without limitation, (A) all due diligence, collateral review,
syndication, transportation, computer, duplication, appraisal, audit, insurance,
consultant, search, filing and recording fees and expenses and (B) the
reasonable fees and expenses of counsel for such Agent with respect thereto,
with respect to advising such Agent as to its rights and responsibilities, or
the perfection, protection or preservation of rights or interests, under the
Loan Documents, with respect to negotiations with any Loan Party or with other
creditors of any Loan Party or any of its Subsidiaries arising out of any
Default or any events or circumstances that may give rise to a Default and with
respect to presenting claims in or otherwise participating in or monitoring any
bankruptcy, insolvency or other similar proceeding involving creditors' rights
generally and any proceeding ancillary thereto) and (ii) all reasonable
out-of-pocket costs and expenses of each Agent and each Lender Party in
connection with the enforcement (whether through negotiations, legal proceedings
or otherwise) of the Loan Documents, whether in any action, suit or litigation,
or any bankruptcy, insolvency or other similar proceeding affecting creditors'
rights generally (including, without limitation, the reasonable fees and
expenses of counsel for such Agent and each Lender Party with respect thereto).

                  (b)      Each Loan Party agrees to indemnify, defend and save
and hold harmless each Indemnified Party from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or
preparation of a defense in connection therewith) (i) the Facilities, the actual
or proposed use of the proceeds of the Advances or the Letters of Credit, the
Loan Documents or any of the transactions contemplated thereby or (ii) the
actual or alleged presence of Hazardous Materials on any property of any Loan
Party or any of its Subsidiaries or any Environmental Action relating in any way
to any Loan Party or any of its Subsidiaries, except to the extent such claim,
damage, loss, liability or

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expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party's gross negligence or
willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 9.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or
proceeding is brought by any Loan Party, its directors, shareholders or
creditors or an Indemnified Party, whether or not any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated by
the Loan Documents are consummated. Each Loan Party also agrees not to assert
any claim against any Agent, any Lender Party or any of their Affiliates, or any
of their respective officers, directors, employees, agents and advisors, on any
theory of liability, for special, indirect, consequential or punitive damages
arising out of or otherwise relating to the Facilities, the actual or proposed
use of the proceeds of the Advances or the Letters of Credit, the Loan Documents
or any of the transactions contemplated by the Loan Documents.

                  (c)      If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance is made by the Borrower to or for the account of a
Lender Party other than on the last day of the Interest Period for such Advance,
as a result of a payment or Conversion pursuant to Section 2.06, 2.09(b)(i) or
2.10(d), acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, or if the Borrower fails to make any payment or prepayment
of an Advance for which a notice of prepayment has been given or that is
otherwise required to be made, whether pursuant to Section 2.04, 2.06 or 6.01 or
otherwise, the Borrower shall, upon demand by such Lender Party (with a copy of
such demand to the Administrative Agent), pay to the Administrative Agent for
the account of such Lender Party any amounts required to compensate such Lender
Party for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion or such failure to pay or prepay, as
the case may be, including, without limitation, any loss, cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by any Lender Party to fund or maintain such Advance.

                  (d)      If any Loan Party fails to pay when due any costs,
expenses or other amounts payable by it under any Loan Document, including,
without limitation, fees and expenses of counsel and indemnities, such amount
may be paid on behalf of such Loan Party by any Agent or any Lender Party, in
its sole discretion.

                  (e)      Without prejudice to the survival of any other
agreement of any Loan Party hereunder or under any other Loan Document, the
agreements and obligations of the Borrower and the other Loan Parties contained
in Sections 2.10 and 2.12, Section 7.06 and this Section 9.04 shall survive the
payment in full of principal, interest and all other amounts payable hereunder
and under any of the other Loan Documents.

                  SECTION 9.05. Right of Set-off. Upon (a) the occurrence and
during the continuance of any Event of Default and (b) the making of the request
or the granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender Party and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender Party
or such Affiliate to or for the credit or the account of the Borrower or any
other Loan Party against any and all of the Obligations of the Borrower or such
Loan Party now or hereafter existing under the Loan Documents, irrespective of
whether such Agent or such Lender Party shall have made any demand under this
Agreement or such Note or Notes and although such obligations may be unmatured.
Each Agent and each Lender Party agrees promptly to notify the Borrower or such
Loan Party after any such set-off and application; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Agent and each Lender Party and their respective
Affiliates

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under this Section 9.05 are in addition to other rights and remedies (including,
without limitation, other rights of set-off) that such Agent, such Lender Party
and their respective Affiliates may have.

                  SECTION 9.06. Binding Effect. This Agreement shall become
effective when it shall have been executed by the Borrower, each Guarantor named
on the signature pages hereto and each Agent and the Administrative Agent shall
have been notified by each Initial Lender, each Initial Issuing Bank and each
Arranger that such Initial Lender, such Initial Issuing Bank or such Arranger,
as the case may be, has executed it and thereafter shall be binding upon and
inure to the benefit of the Borrower, the Guarantors named on the signature
pages hereto and each Agent and each Lender Party and their respective
successors and assigns, except that neither the Borrower nor any other Loan
Party shall have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Lender Parties.

                  SECTION 9.07. Assignments and Participations. (a) Each Lender
may assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment or Commitments, the Advances owing to it and the Note
or Notes held by it); provided, however, that (i) each such assignment shall be
of a uniform, and not a varying, percentage of all rights and obligations under
and in respect of one or more of the Facilities, (ii) except in the case of an
assignment to a Person that, immediately prior to such assignment, was a Lender,
an Affiliate of any Lender or a Fund Affiliate of any Lender or an assignment of
all of a Lender's rights and obligations under this Agreement, the aggregate
amount of the Commitments being assigned to such Eligible Assignee pursuant to
such assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $5,000,000 under each
Facility or an integral multiple of $1,000,000 in excess thereof (or such lesser
amount as shall be approved by the Administrative Agent and, so long as no
Default shall have occurred and be continuing at the time of effectiveness of
such assignment, the Borrower), (iii) each such assignment shall be to an
Eligible Assignee, (iv) no such assignments shall be permitted without the
consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) until the Administrative Agent shall have notified the
Lender Parties that syndication of the Commitments hereunder has been completed
and (v) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an
Assignment and Acceptance, together with any Note or Notes subject to such
assignment and, except if such assignment is being made by a Lender to an
Affiliate or Fund Affiliate of such Lender, a processing and recordation fee of
$3,500.

                  (b)      Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in such Assignment and
Acceptance, (i) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
or Issuing Bank, as the case may be, hereunder and (ii) the Lender or Issuing
Bank assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.10, 2.12, 7.06,
8.05 and 9.04 to the extent any claim thereunder relates to an event arising
prior to such assignment) and be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
remaining portion of an assigning Lender's or Issuing Bank's rights and
obligations under this Agreement, such Lender or Issuing Bank shall cease to be
a party hereto).

                  (c)      By executing and delivering an Assignment and
Acceptance, each Lender Party assignor thereunder and each assignee thereunder
confirm to and agree with each other and the other parties thereto and hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such
assigning Lender Party makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with any Loan Document or the

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execution, legality, validity, enforceability, genuineness, sufficiency or value
of, or the perfection or priority of any lien or security interest created or
purported to be created under or in connection with, any Loan Document or any
other instrument or document furnished pursuant thereto; (ii) such assigning
Lender Party makes no representation or warranty and assumes no responsibility
with respect to the financial condition of any Loan Party or the performance or
observance by any Loan Party of any of its obligations under any Loan Document
or any other instrument or document furnished pursuant thereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon the Administrative Agent,
such assigning Lender Party or any other Lender Party 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) such assignee confirms that it is an Eligible Assignee; (vi) such
assignee appoints and authorizes the Administrative Agent to take such action as
agent on its behalf and to exercise such powers and discretion under the Loan
Documents as are delegated to the Administrative Agent by the terms hereof and
thereof, together with such powers and discretion as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance with
their terms all of the obligations that by the terms of this Agreement are
required to be performed by it as a Lender or Issuing Bank, as the case may be.

                  (d)      The Administrative Agent shall maintain at its
address referred to in Section 9.02 a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names
and addresses of the Lender Parties and the Commitment under each Facility of,
and principal amount of the Advances owing under each Facility to, each Lender
Party from time to time (the "REGISTER"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent and the Lender Parties may treat each Person
whose name is recorded in the Register as a Lender Party hereunder for all
purposes of this Agreement. The Register shall be available for inspection by
the Borrower or the Administrative Agent or any Lender Party at any reasonable
time and from time to time upon reasonable prior notice.

                  (e)      Upon its receipt of an Assignment and Acceptance
executed by an assigning Lender Party and an assignee, together with any Note or
Notes subject to such assignment, the Administrative Agent shall, if such
Assignment and Acceptance has been completed and is in substantially the form of
Exhibit D hereto, (i) accept such Assignment and Acceptance, (ii) record the
information contained therein in the Register and (iii) give prompt notice
thereof to the Borrower and each other Agent. In the case of any assignment by a
Lender, within five Business Days after its receipt of such notice, the
Borrower, at its own expense, shall, if requested by the applicable Lender,
execute and deliver to the Administrative Agent in exchange for the surrendered
Note or Notes a new Note to the order of such Eligible Assignee in an amount
equal to the Commitment assumed by it under each Facility pursuant to such
Assignment and Acceptance and, if any assigning Lender has retained a Commitment
hereunder under such Facility, a new Note to the order of such assigning Lender
in an amount equal to the Commitment retained by it hereunder. Such new Note or
Notes, if any, shall be in an aggregate principal amount equal to the aggregate
principal amount of such surrendered Note or Notes, shall be dated the effective
date of such Assignment and Acceptance and shall otherwise be in substantially
the form of Exhibit A hereto.

                  (f)      Each Issuing Bank may assign to one or more Eligible
Assignees all or a portion of its rights and obligations under the undrawn
portion of its Letter of Credit Commitment at any time; provided, however, that
(i) except in the case of an assignment to a Person that immediately prior to
such assignment was an Issuing Bank or an assignment of all of an Issuing Bank's
rights and obligations under this Agreement, the amount of the Letter of Credit
Commitment of the assigning Issuing Bank being

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assigned pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $10,000,000 and shall be in an integral multiple of $1,000,000 in
excess thereof, (ii) each such assignment shall be to an Eligible Assignee and
(iii) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an
Assignment and Acceptance, together with a processing and recordation fee of
$3,500, provided, that such fee shall not be payable if the assigning Issuing
Bank is making such assignment simultaneously with the assignment in its
capacity as a Lender of all or a portion of its Revolving Credit Commitment to
the same Eligible Assignee.

                  (g)      Each Lender Party may sell participations to one or
more Persons (other than any Loan Party or any of its Affiliates) in or to all
or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitments, the Advances owing to
it and the Note or Notes (if any) held by it);provided, however, that (i) such
Lender Parry's obligations under this Agreement (including, without limitation,
its Commitments) shall remain unchanged, (ii) such Lender Party shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Lender Party shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrower, the Administrative Agent
and the other Lender Parties shall continue to deal solely and directly with
such Lender Party in connection with such Lender Party's rights and obligations
under this Agreement, (v) no participant under any such participation shall have
any right to approve any amendment or waiver of any provision of any Loan
Document, or any consent to any departure by any Loan Party therefrom, except to
the extent that such amendment, waiver or consent would reduce the principal of,
or interest on, the Notes or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation or postpone any date fixed
for any payment of principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation, or release all or substantially all of the Collateral and (vi)
if, at the time of such sale, such Lender Party was entitled to payments under
Section 2.12(a) in respect of United States withholding tax with respect to
interest paid at such date, then, to such extent, the term Taxes shall include
(in addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to such participant on such date, provided, that such
participant complies with the requirements of Section 2.12(e).

                  (h)      Any Lender Party may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 9.07, disclose to the assignee or participant or proposed assignee
or participant any information relating to the Borrower furnished to such Lender
Party by or on behalf of the Borrower; provided, however, that, prior to any
such disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
received by it from such Lender Party.

                  (i)      Notwithstanding any other provision set forth in this
Agreement, any Lender Party may at any time create a security interest in all or
any portion of its rights under this Agreement (including, without limitation,
the Advances owing to it and the Note or Notes held by it) in favor of any
Federal Reserve Bank in accordance with Regulation A of the Board of Governors
of the Federal Reserve System.

                  SECTION 9.08. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

                                       79

<PAGE>

                  SECTION 9.09. No Liability of the Issuing Banks. The Borrower
assumes all risks of the acts or omissions of any beneficiary or transferee of
any Letter of Credit with respect to its use of such Letter of Credit. Neither
any Issuing Bank nor any of its officers or directors shall be liable or
responsible for: (a) the use that may be made of any Letter of Credit or any
acts or omissions of any beneficiary or transferee in connection therewith; (b)
the validity, sufficiency or genuineness of documents, or of any endorsement
thereon, even if such documents should prove to be in any or all respects
invalid, insufficient, fraudulent or forged; (c) payment by such Issuing Bank
against presentation of documents that do not comply with the terms of a Letter
of Credit, including failure of any documents to bear any reference or adequate
reference to the Letter of Credit; or (d) any other circumstances whatsoever in
making or failing to make payment under any Letter of Credit, except that the
Borrower shall have a claim against such Issuing Bank, and such Issuing Bank
shall be liable to the Borrower, to the extent of any direct, but not
consequential, damages suffered by the Borrower that the Borrower proves were
caused by (i) such Issuing Bank's willful misconduct or gross negligence as
determined in a final, non-appealable judgment by a court of competent
jurisdiction in determining whether documents presented under any Letter of
Credit comply with the terms of the Letter of Credit or (ii) such Issuing Bank's
willful failure to make lawful payment under a Letter of Credit after the
presentation to it of a draft and certificates strictly complying with the terms
and conditions of the Letter of Credit. In furtherance and not in limitation of
the foregoing, such Issuing Bank may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary.

                  SECTION 9.10. Confidentiality. Neither the Administrative
Agent nor any Lender Party shall disclose any Confidential Information to any
Person without the consent of the Borrower, other than (a) to such
Administrative Agent's or such Lender Party's Affiliates and their officers,
directors, employees, agents and advisors and to actual or prospective Eligible
Assignees and participants, and then only on a confidential basis, (b) as
required by any law, rule or regulation or judicial process, (c) as requested or
required by any state, Federal or foreign authority or examiner regulating such
Lender Party and (d) to any rating agency when required by it, provided that,
prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Lender Party. Notwithstanding anything herein or in any
other written or oral understanding or agreement to which the Loan Parties, the
Administrative Agent and the Lender Parties are parties or by which they are
bound, the Loan Parties, the Administrative Agent and the Lender Parties
acknowledge and agree that (i) any obligations of confidentiality contained
herein and therein do not apply and have not applied from the commencement of
discussions between the parties to the tax treatment and tax structure of the
transactions contemplated by this Agreement (and any related transactions or
arrangements), and (ii) the Loan Parties, the Administrative Agent and the
Lender Parties may disclose to any and all Persons, without limitation of any
kind, the U.S. tax treatment of and tax structure of the transactions
contemplated hereby and all materials of any kind (including opinions or other
tax analyses) that are provided to the Loan Parties, the Administrative Agent or
the Lender Parties, as the case may be, relating to such U.S. tax treatment and
tax structure, all within the meaning of Treasury regulations Section 1.6011-4;
provided, however, that each of the Loan Parties, the Administrative Agent
and the Lender Parties recognizes that the privilege each has to maintain, in
its sole discretion, the confidentiality of a communication relating to the
transactions contemplated by this Agreement, including a confidential
communication with its attorney or a confidential communication with a federally
authorized tax practitioner under Section 7525 of the Internal Revenue Code, is
not intended to be affected by the foregoing.

                  SECTION 9.11. Release of Collateral. Upon the sale, lease,
transfer or other disposition of any item of Collateral of any Loan Party
(including, without limitation, as a result of the sale, in accordance with the
terms of the Loan Documents, of the Loan Party that owns such Collateral) in
accordance with the terms of the Loan Documents, the Collateral Agent will, at
the Borrower's expense,

                                       80

<PAGE>

execute and deliver to such Loan Party such documents as such Loan Party may
reasonably request to evidence the release of such item of Collateral from the
assignment and security interest granted under the Collateral Document in
accordance with the terms of the Loan Documents.

                  SECTION 9.12. Jurisdiction, Etc. (a) Each of the parties
hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any of the other Loan Documents to which it is a
party, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any such
New York State court or, to the extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that any parry may otherwise have to bring any
action or proceeding relating to this Agreement or any of the other Loan
Documents in the courts of any jurisdiction.

                  (b)      Each of the parties hereto irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection that it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any of the other Loan Documents to which it is a party in any New York State or
Federal court. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

                  SECTION 9.13. Governing Law. This Agreement and the Notes
shall be governed by, and construed in accordance with, the laws of the State of
New York.

                   [Balance of page intentionally left blank]

                                       81

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                                BORROWER:

                                MAGUIRE PROPERTIES, L.P.
                                 By Maguire Properties, Inc., its General
                                  Partner

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: S.V.P.

                                GUARANTORS:

                                MAGUIRE PROPERTIES, INC.

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: S.V.P.

                                MAGUIRE PROPERTIES SERVICES, INC.

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: SECRETARY

<PAGE>

                                MAGUIRE PROPERTIES-SOLANA SERVICES, L.P.
                                By MP-Solana Services GP, LLC, its General
                                Partner
                                By Maguire Properties Services, Inc., its Member

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: SECRETARY

                                MP-SOLANA SERVICES GP, LLC
                                By Maguire Properties Services, Inc., its Member

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: SECRETARY

                                MP-SOLANA SERVICES LP, LLC
                                By Maguire Properties Services, Inc., its Member

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: SECRETARY

                                MAGUIRE/CERRITOS I, LLC
                                By Maguire Properties, L.P., its Member
                                By Maguire Properties, Inc., its General Partner

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: S.V.P.

                                MAGUIRE PARTNERS-GLENDALE II, LLC
                                By Maguire Properties, L.P., its Member
                                By Maguire Properties, Inc., its General Partner

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: S.V.P.

<PAGE>

                                MAGUIRE PARTNERS-PLAZA LAS FUENTES, LLC
                                By Maguire Properties, L.P., its Member
                                By Maguire Properties, Inc., its General Partner

                                By /s/ Mark T. Lammas
                                   ---------------------------------------------
                                   Name: MARK T. LAMMAS
                                   Title: S.V.P.

<PAGE>

                                CITICORP NORTH AMERICA, INC., as
                                Administrative Agent, as Collateral Agent and as
                                Initial Lender

                                By /s/ David Bouton
                                   ---------------------------------------------
                                   Name: David Bouton
                                   Title: Vice President

<PAGE>

                                WACHOVIA BANK, NA, as Initial Issuing Bank and
                                as Initial Lender

                                By /s/ Rex E. Rudy
                                   ---------------------------------------------
                                   Name: Rex E. Rudy
                                   Title: Director

<PAGE>

                                FLEET NATIONAL BANK, as Initial Under

                                By /s/ Bill Lamb
                                   ---------------------------------------------
                                   Name:Bill Lamb
                                   Title: Vice President

<PAGE>

                                BANK ONE, NA, as Initial Lender

                                By /s/ [ILLEGIBLE]
                                   ---------------------------------------------
                                   Name: [ILLEGIBLE]
                                   Title: Director, Capital Markets

<PAGE>

                                CREDIT SUISSE FIRST BOSTON
                                CAYMAN ISLANDS BRANCH, as Initial Lender

                                By /s/ William O' Daly
                                   ---------------------------------------------
                                   Name:  William O' Daly
                                   Title: Director

                                By /s/ Cassandra Droogan
                                   ---------------------------------------------
                                   Name:  Cassandra Droogan
                                   Title: Associate

<PAGE>

                                COMMERZBANK, AG, NEW YORK AND GRAND CAYMAN
                                BRANCHES, as Initial Leader

                                By /s/ R. William Knickerbocker
                                   ---------------------------------------------
                                   Name: R. William Knickerbocker
                                   Title: Vice President

                                By /s/ E. Marcus Perry
                                   ---------------------------------------------
                                   Name: E. Marcus Perry
                                   Title: Assistant Vice President

<PAGE>

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

                                By /s/ Frank H. Stumpf
                                   ---------------------------------------------
                                   Name: FRANK H. STUMPF
                                   Title: PRINCIPAL

<PAGE>

                                UBS AG, CAYMAN ISLANDS BRANCH, as Initial Lender

                                By /s/ Patricia O'Kicki
                                  ----------------------------------------------
                                   Name: Patricia O'Kicki
                                   Title: Director

                                By /s/ Wilfred Saint
                                  ----------------------------------------------
                                   Name: Wilfred Saint
                                   Title: Associate Director

<PAGE>

                                BANK OF THE WEST, as Initial Lender

                                By /s/ Lynn Foster
                                   ---------------------------------------------
                                   Name: Lynn Foster
                                   Title: Senior Vice President & Manager

<PAGE>

                                   SCHEDULE I

                   COMMITMENTS AND APPLICABLE LENDING OFFICES

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
  NAME OF INITIAL           REVOLVING
      LENDER/                 CREDIT     LETTER OF CREDIT
INITIAL ISSUING BANK       COMMITMENT       COMMITMENT      DOMESTIC LENDING OFFICE                   EURODOLLAR LENDING OFFICE
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>            <C>                <C>                                       <C>
Citicorp North            $  14,500,000                     2 Penns Way, Suite 200                    2 Penns Way, Suite 200
America, Inc.                                               New Castle, DE 19720                      New Castle, DE 19720
                                                            Attn: Hilda Zambeano                      Attn: Hilda Zambeano
                                                            Tel: 302-894-6047                         Tel: 302-894-6047
                                                            Fax: 302-994-0849                         Fax: 302-994-0849
------------------------------------------------------------------------------------------------------------------------------------
Wachovia Bank, NA         $  14,500,000    $  25,000,000    301 S. College Street, 8th Fl.            301 S. College Street, 8th Fl.
                                                            Mailcode NC 5708                          Mailcode NC 5708
                                                            Charlotte, NC 28288                       Charlotte, NC 28288
                                                            Attn: Angela Abessinio                    Attn: Angela Abessinio
                                                            Tel: 704-383-9334                         Tel: 704-383-9334
                                                            Fax: 704-383-7989                         Fax: 704-383-7989
------------------------------------------------------------------------------------------------------------------------------------
Fleet National Bank       $  14,000,000                     Suite 500                                 Suite 500
                                                            115 Perimeter Center Pl.                  115 Perimeter Center Pl.
                                                            Atlanta, GA 30346                         Atlanta, GA 30346
                                                            Attn: Jacquelyn Krieger                   Attn: Jacquelyn Krieger
                                                            Tel: 770-390-6502                         Tel: 770-390-6502
                                                            Fax: 770-390-8434                         Fax: 770-390-8434
------------------------------------------------------------------------------------------------------------------------------------
Bank One, NA              $  14,000,000                     1 Bank One Plaza                          1 Bank One Plaza
                                                            IL1-0318                                  IL1-0318
                                                            Chicago, IL 60670                         Chicago, IL 60670
                                                            Attn: Jose Rodriguez                      Attn: Jose Rodriguez
                                                            Tel: 312-732-5462                         Tel: 312-732-5462
                                                            Fax: 312-732-1582                         Fax:312-732-1582
------------------------------------------------------------------------------------------------------------------------------------
Bank of the West          $  14,000,000                     1450 Treat Blvd.                          1450 Treat Blvd.
                                                            NC-TRE-02-L                               NC-TRE-02-L
                                                            Walnut Creek, CA 94597                    Walnut Creek, CA 94597
                                                            Attn: Lyle Richardson                     Attn: Lyle Richardson
                                                            Tel: 925-942-8306                         Tel: 925-942-8306
                                                            Fax: 925-933-6719                         Fax: 925-933-6719
------------------------------------------------------------------------------------------------------------------------------------
Commerzbank AG, New       $  14,000,000                     2 World Financial Center                  2 World Financial Center
York and Grand                                              New York, NY 10281                        New York, NY 10281
Cayman Branches                                             Attn: Massimo Ippolito                    Attn: Massimo Ippolito
                                                            Tel: 212-266-7707                         Tel: 212-266-7707
                                                            Fax: 212-266-7772                         Fax: 212-266-7772
------------------------------------------------------------------------------------------------------------------------------------
Credit Suisse First       $   5,000,000                     One Madison Avenue                        One Madison Avenue
Boston Cayman Island                                        New York, NY 10010                        New York, NY 10010
Branch                                                      Attn: Ed Markowski                        Attn: Ed Markowski
                                                            Tel: 212-538-3380                         Tel: 212-538-3380
                                                            Fax: 212-538-3477                         Fax: 212-538-3477
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     Sch.I

<PAGE>

<TABLE>
<S>                       <C>              <C>              <C>                                       <C>
------------------------------------------------------------------------------------------------------------------------------------
Bank of America, N.A.     $   5,000,000                     901 Main Street, 14th Floor               901 Main Street, 14th Floor
                                                            Dallas, TX 75202                          Dallas, TX 75202
                                                            Attn: Sharon Robinson                     Attn: Sharon Robinson
                                                            Tel: 214-209-0203                         Tel: 214-209-0203
                                                            Fax: 214-290-9645                         Fax: 214-290-9645
------------------------------------------------------------------------------------------------------------------------------------
UBS AG, Cayman            $   5,000,000                     677 Washington Boulevard                  677 Washington Boulevard
Islands Branch                                              Stamford, CT 06901                        Stamford, CT 06901
                                                            Attn: Vladimira Holeckova                 Attn: Vladimira Holeckova
                                                            Tel: 203-719-6403                         Tel: 203-719-6403
                                                            Fax: 203-719-4176                         Fax: 203-719-4176
------------------------------------------------------------------------------------------------------------------------------------
        Total             $ 100,000,000    $  25,000,000
--------------------------------------------------------
</TABLE>

                                     Sch.I

<PAGE>

                                   SCHEDULE II

                           ELIGIBLE REAL ESTATE ASSETS

         (a) AT&T Wireless Western Regional Headquarters, located at 12900 Park
Plaza Drive and 12911 183rd Street, Cerritos, California;

         (b) Plaza Las Fuentes Office located at 99,111,135 and 191 North Los
Robles Avenue, Pasadena, California; and

         (c) Plaza Las Fuentes Westin Hotel, located at 99,111,135 and 191 North
Los Robles Avenue, Pasadena, California.

                                     Sch.II<PAGE>

                                                                    EXHIBIT 10.8

================================================================================

                          LIBRARY SQUARE ASSOCIATES, LLC
                                   (Borrower)

                                       and

                         COMMONWEALTH LAND TITLE COMPANY
                                    (Trustee)

                                       and

                   GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
                                    (Lender)

                       DEED OF TRUST, ASSIGNMENT OF LEASES
                AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING

                            Dated: As of June 26, 2003

                         Location: 633 West Fifth Street
                         County:   Los Angeles
                         State:    California

               DOCUMENT PREPARED BY AND WHEN RECORDED, RETURN TO:

                          Cadwalader, Wickersham & Taft
                                 100 Maiden Lane
                            New York, New York 10038
                        Attention: Alan W. Lawrence, Esq.

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                    Page
                                                                                                                    ----
<S>                                                                                                                 <C>
PART I
         GENERAL PROVISIONS
1.       Payment of Debt and Incorporation of Covenants, Conditions and Agreements..............................      4
2.       Warranty of Title......................................................................................      4
3.       Insurance..............................................................................................      4
4.       Casualty...............................................................................................      9
5.       Payment of Taxes, Etc..................................................................................     15
6.       Tax and Insurance Impound Fund; Deferred Maintenance Escrow Fund; US
         Bancorp Escrow Fund; Outstanding Tenant Allowance Escrow Fund;
         Replacement/Leasing Escrow Fund........................................................................     16
7.       Alterations............................................................................................     28
8.       Leases and Rents.......................................................................................     28
9.       Maintenance and Use of Trust Property..................................................................     30
10.      Transfer or Encumbrance of the Trust Property..........................................................     31
11.      Representations and Covenants Concerning the Borrower and Trust Property...............................     38
12.      Single Purpose Entity/Separateness.....................................................................     44
13.      Estoppel Certificates and No Default Affidavits........................................................     50
14.      Controlling Agreement..................................................................................     50
15.      Changes in Laws Regarding Taxation.....................................................................     51
16.      No Credits on Account of the Debt......................................................................     51
17.      Documentary Stamps.....................................................................................     51
18.      Books and Records......................................................................................     51
19.      Performance of Other Agreements........................................................................     53
20.      Further Acts, Etc......................................................................................     53
21.      Recording of Deed of Trust, Etc........................................................................     53
22.      Reporting Requirements.................................................................................     54
23.      Events of Default......................................................................................     54
24.      Late Payment Charge....................................................................................     56
25.      Right To Cure Defaults.................................................................................     56
26.      Additional Remedies....................................................................................     56
27.      Right of Entry.........................................................................................     59
28.      Security Agreement.....................................................................................     60
29.      Actions and Proceedings................................................................................     61
30.      Waiver of Setoff and Counterclaim......................................................................     61
31.      Contest of Certain Claims..............................................................................     61
32.      Recovery of Sums Required to be Paid...................................................................     62
33.      Marshalling and Other Matters..........................................................................     62
34.      Hazardous Substances...................................................................................     62
35.      Asbestos...............................................................................................     63
36.      Environmental Monitoring...............................................................................     63
37.      Handicapped Access.....................................................................................     65
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                                                                  <C>
38.      Indemnification........................................................................................     65
39.      Notices................................................................................................     66
40.      Authority..............................................................................................     67
41.      Waiver of Notice.......................................................................................     68
42.      Remedies of Borrower...................................................................................     68
43.      Sole Discretion of Lender..............................................................................     68
44.      Non-Waiver.............................................................................................     68
45.      No Oral Change.........................................................................................     69
46.      Liability..............................................................................................     69
47.      Inapplicable Provisions................................................................................     69
48.      Headings, Etc..........................................................................................     69
49.      Duplicate Originals....................................................................................     69
50.      Definitions............................................................................................     69
51.      Homestead..............................................................................................     69
52.      Assignments............................................................................................     69
53.      Waiver of Jury Trial...................................................................................     70
54.      Governing Law..........................................................................................     70
55.      Trustee's Fees; Substitute Trustee.....................................................................     71
56.      Power of Sale..........................................................................................     72
57.      Recourse Provisions....................................................................................     73
58.      Cash Management Agreement..............................................................................     75
59.      Management of the Trust Property.......................................................................     75
60.      Servicer...............................................................................................     76
61.      Component Notes........................................................................................     76
62.      Mezzanine Loan Option..................................................................................     77
63.      Miscellaneous..........................................................................................     78
PART II

         STATE SPECIFIC PROVISIONS
64.      Principles of Construction.............................................................................     79
65.      Additional Remedies Provisions.........................................................................     80
66.      Deed of Trust Not to Secure Environmental Covenants, Obligations, and
         Indemnities or Guaranty Obligations....................................................................     82
67.      Additional Waivers.....................................................................................     83
</TABLE>

                             INDEX OF DEFINED TERMS

                                      -ii-

<PAGE>

                                    EXHIBITS

Exhibit A       LEGAL DESCRIPTION

Exhibit B       RESERVED

Exhibit C       REQUIRED REPAIRS

Exhibit D       OUTSTANDING TENANT ALLOWANCE OBLIGATIONS

                                      -iii-

<PAGE>

                     DEED OF TRUST, ASSIGNMENT OF LEASES AND
                  RENTS. SECURITY AGREEMENT AND FIXTURE FILING

                  THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (this "DEED OF TRUST"), made as of June 26, 2003,
by LIBRARY SQUARE ASSOCIATES, LLC, a Delaware limited liability company, having
its principal place of business at 555 West Fifth Street, Suite 5000, Los
Angeles, California 90013 ("BORROWER"), to COMMONWEALTH LAND TITLE COMPANY, a
California corporation, the trustee hereunder, having its mailing address at 888
West 6th Street, 4th Floor, Los Angeles, California 90017 ("TRUSTEE") for the
benefit of GREENWICH CAPITAL FINANCIAL PRODUCTS, INC., a Delaware corporation
("LENDER"), having its principal office at 600 Steamboat Road, Greenwich,
Connecticut 06830.

                              W I T N E S S E T H:

                  To secure the payment of an indebtedness (a) in the original
principal sum of Two Hundred Sixty Million and No/100 Dollars (5260,000,000),
lawful money of the United States of America, to be paid with interest according
to a certain Deed of Trust Note of even date herewith made by Borrower to Lender
(together with all extensions, renewals or modifications thereof, being
hereinafter called the "NOTE", and the loan evidenced by the Note hereinafter
being referred to as the "LOAN") and all other sums due hereunder, under the
other Loan Documents (hereinafter defined) and under the Note (said indebtedness
and interest due under the Note and all other sums due hereunder under the Note
and the other Loan Documents being hereinafter collectively referred to as the
"DEBT"), Borrower has deeded, mortgaged, given, granted, bargained, transferred,
sold, alienated, enfeoffed, conveyed, confirmed, warranted, pledged, assigned,
and hypothecated and by these presents does hereby deed, mortgage, give, grant,
bargain, sell, alien, enfeoff, convey, confirm, warrant, pledge, assign and
hypothecate unto Trustee (in trust), with power of sale for the benefit and
security of Lender, the real property described in Exhibit A attached hereto
(the "PREMISES") and the buildings, structures, fixtures, additions,
enlargements, extensions, modifications, repairs, replacements and improvements
now or hereafter located thereon (the "IMPROVEMENTS");

                  TOGETHER WITH: all right, title, interest and estate of
Borrower now owned, or hereafter acquired, in and to the following property,
rights, interests and estates (the Premises, the Improvements, and such
property, rights, interests and estates hereinafter described are collectively
referred to herein as the "TRUST PROPERTY"):

                               GRANTING CLAUSE ONE

                  All easements, rights-of-way, strips and gores of land,
streets, ways, alleys, passages, sewer rights, water, water courses, water
rights and powers, air rights and development rights, all rights to oil, gas,
minerals, coal and other substances of any kind or character, and all estates,
rights, titles, interests, privileges, liberties, tenements, hereditaments and
appurtenances of any nature whatsoever, in any way belonging, relating or
pertaining to the Premises and the Improvements and the reversion and
reversions, remainder and remainders, and all land lying in

<PAGE>

the bed of any street, road, highway, alley or avenue, opened, vacated or
proposed, in front of or adjoining the Premises, to the center line thereof and
all the estates, rights, titles, interests, dower and rights of dower, curtsey
and rights of curtsey, property, possession, claim and demand whatsoever, both
at law and in equity, of Borrower of, in and to the Premises and the
Improvements and every part and parcel thereof, with the appurtenances thereto;

                               GRANTING CLAUSE TWO

                  All machinery, furniture, furnishings, equipment, computer
software and hardware, fixtures (including, without limitation, all heating, air
conditioning, plumbing, lighting, communications and elevator fixtures) and
other property of every kind and nature, whether tangible or intangible,
whatsoever owned by Borrower, or in which Borrower has or shall have an
interest, now or hereafter located upon the Premises and the Improvements, or
appurtenant thereto, and usable in connection with the present or future
operation and occupancy of the Premises and the Improvements and all building
equipment, materials and supplies of any nature whatsoever owned by Borrower, or
in which Borrower has or shall have an interest, now or hereafter located upon
the Premises and the Improvements, or appurtenant thereto, or usable in
connection with the present or future operation, enjoyment and occupancy of the
Premises and the Improvements (hereinafter collectively referred to as the
"EQUIPMENT"), including any leases of any of the foregoing, any deposits
existing at any time in connection with any of the foregoing, and the proceeds
of any sale or transfer of the foregoing, and the right, title and interest of
Borrower in and to any of the Equipment that may be subject to any "security
interests" as defined in the Uniform Commercial Code, as adopted and enacted by
the State or States where any of the Trust Property is located (the "UNIFORM
COMMERCIAL CODE"), superior in lien to the lien of this Deed of Trust;

                              GRANTING CLAUSE THREE

                  Awards or payments, including interest thereon, that may
heretofore and hereafter be made with respect to the Premises and the
Improvements, whether from the exercise of the right of eminent domain or
condemnation (including, without limitation, any transfer made in lieu of or in
anticipation of the exercise of said rights), or for a change of grade, or for
any other injury to or decrease in the value of the Premises and Improvements;

                              GRANTING CLAUSE FOUR

                  All leases, subleases and other agreements or arrangements
heretofore or hereafter entered into affecting the use, enjoyment or occupancy
of, or the conduct of any activity upon or in, the Premises and the
Improvements, including any extensions, renewals, modifications or amendments
thereof (the "LEASES") and all rents, rent equivalents, moneys payable as
damages or in lieu of rent or rent equivalents (including, but not limited to,
fees from parking passes), royalties (including, without limitation, all oil and
gas or other mineral royalties and bonuses), income, receivables, receipts,
revenues, deposits (including, without limitation, security, utility and other
deposits), accounts, cash, issues, profits, charges for services rendered, and
other consideration of whatever form or nature received by or paid to or for the
account of or benefit of Borrower or its agents or employees from any and all
sources arising from or attributable to the

                                      -2-

<PAGE>

Premises and the Improvements (the "RENTS"), together with all proceeds from the
sale or other disposition of the Leases and the right to receive and apply the
Rents to the payment of the Debt;

                              GRANTING CLAUSE FIVE

                  All proceeds of and any unearned premiums on any insurance
policies covering the Trust Property, including, without limitation, the right
to receive and apply the proceeds of any insurance, judgments, or settlements
made in lieu thereof, for damage to the Trust Property;

                               GRANTING CLAUSE SIX

                  The right, in the name and on behalf of Borrower, to appear in
and defend any action or proceeding brought with respect to the Trust Property
and to commence any action or proceeding to protect the interest of Lender in
the Trust Property;

                              GRANTING CLAUSE SEVEN

                  All accounts (together with all deposits or wire transfers
made to accounts and all cash, checks, drafts, certificates, securities,
investment property, financial assets, instruments and other property held
therein from time to time and all proceeds, products, distributions or dividends
or substitutions thereon and thereof), escrows, documents, instruments, chattel
paper, claims, deposits and general intangibles, as the foregoing terms are
defined in the Uniform Commercial Code, and all franchises, trade names,
trademarks, symbols, service marks, books, records, plans, specifications,
designs, drawings, permits, consents, licenses, management agreements, contract
rights (including, without limitation, any contract with any architect or
engineer or with any other provider of goods or services for or in connection
with any construction, repair, or other work upon the Trust Property),
approvals, actions, refunds of real estate taxes and assessments (and any other
governmental impositions related to the Trust Property), and causes of action
that now or hereafter relate to, are derived from or are used in connection with
the Trust Property, or the use, operation, maintenance, occupancy or enjoyment
thereof or the conduct of any business or activities thereon (hereinafter
collectively referred to as the "INTANGIBLES"); and

                              GRANTING CLAUSE EIGHT

                  All proceeds, products, offspring, rents and profits from any
of the foregoing, including, without limitation, those from sale, exchange,
transfer, collection, loss, damage, disposition, substitution or replacement of
any of the foregoing.

                  TO HAVE AND TO HOLD the above granted and described Trust
Property unto and to the use and benefit of Lender;

                  IN TRUST WITH POWER OF SALE, to secure the payment to Lender
of the Debt at the time and in the manner provided for in the Note and in this
Deed of Trust;

                                      -3-

<PAGE>

                  PROVIDED, HOWEVER, these presents are upon the express
condition that, if Borrower shall well and truly pay to Lender the Debt at the
time and in the manner provided in the Note and this Deed of Trust and shall
well and truly abide by and comply with each and every covenant and condition
set forth herein, in the Note and in the other Loan Documents (hereinafter
defined) in a timely manner, these presents and the estate hereby granted shall
cease, terminate and be void;

                  AND Borrower represents and warrants to and covenants and
agrees with Lender as follows:

                                     PART I

                               GENERAL PROVISIONS

                  1.       PAYMENT OF DEBT AND INCORPORATION OF COVENANTS.
CONDITIONS AND AGREEMENTS. Borrower shall pay the Debt at the time and in the
manner provided in the Note and in this Deed of Trust. All the covenants,
conditions and agreements contained in (a) the Note and (b) all and any of the
documents including the Note and this Deed of Trust now or hereafter executed by
Borrower and/or others and by or in favor of Lender, which evidences, secures or
guarantees all or any portion of the payments due under the Note or otherwise is
executed and/or delivered in connection with the Note and this Deed of Trust
(the "LOAN DOCUMENTS") are hereby made a part of this Deed of Trust to the same
extent and with the same force as if fully set forth herein.

                  2.       WARRANTY OF TITLE. Borrower warrants that Borrower
has good, marketable and insurable title to the Trust Property and has the full
power, authority and right to execute, deliver and perform its obligations under
this Deed of Trust and to deed, encumber, mortgage, give, grant, bargain, sell,
alienate, enfeoff, convey, confirm, pledge, assign and hypothecate the same and
that Borrower possesses an unencumbered fee estate in the Premises and the
Improvements and that it owns the Trust Property free and clear of all liens,
encumbrances and charges whatsoever except for those exceptions shown in the
title insurance policy insuring the lien of this Deed of Trust (the "PERMITTED
EXCEPTIONS"), or that may otherwise be expressly permitted by the Loan
Documents, and that this Deed of Trust is and will remain a valid and
enforceable first lien on and security interest in the Trust Property, subject
only to said exceptions. Borrower shall forever warrant, defend and preserve
such title and the validity and priority of the lien of this Deed of Trust and
shall forever warrant and defend the same to Lender against the claims of all
persons whomsoever.

                  3.       INSURANCE.

                  (a)      Borrower shall maintain insurance for Borrower and
the Property providing at least the following coverages:

                  (i)      comprehensive all risk insurance on the Improvements
         and the Equipment, including contingent liability from Operation of
         Building Laws, Demolition Costs and Increased Cost of Construction
         Endorsements, in each case (A) in an amount equal to the

                                      -4-

<PAGE>

         greater of (x) one hundred percent (100%) of the "Full Replacement
         Cost," which for purposes of this Deed of Trust shall mean actual
         replacement value (exclusive of costs of excavations, foundations,
         underground utilities and footings) with a waiver of depreciation and
         (y) the original principal amount of the Loan; (B) containing an agreed
         amount endorsement with respect to the Improvements and Equipment
         waiving all co-insurance provisions; (C) providing for no deductible in
         excess of $50,000; and (D) containing an "Ordinance or Law Coverage" or
         "Enforcement" endorsement if any of the Improvements or the use of the
         Trust Property shall at any time constitute legal non-conforming
         structures or uses. In addition, Borrower shall obtain: (x) Flood
         Insurance in an amount of not less than 525,000,000 each occurrence;
         (y) earthquake insurance in an amount at least equal to one multiplied
         by a Probable Maximum Loss of 11% of total replacement value and a
         deductible of 5% of the Total Insured Value (which includes annual
         rental value) at the Trust Property, and otherwise in form and
         substance reasonably satisfactory to Lender; and (z) coastal windstorm
         insurance in amounts and in form and substance satisfactory to Lender
         in the event the Trust Property is located in any coastal region,
         provided that the insurance pursuant to clauses, (x), (y) and (z)
         hereof shall be on terms consistent with the comprehensive all risk
         insurance policy required under this subsection (i) and rental
         interruption insurance under subsection (iii);

                  (ii)     commercial general liability insurance against claims
         for personal injury, bodily injury, death or property damage occurring
         upon, in or about the Property, such insurance (A) to be on the
         so-called "occurrence" form with a combined limit of not less than Two
         Million and No/100 Dollars (52,000,000) in the aggregate and One
         Million and No/100 Dollars ($1,000,000) per occurrence; (B) to continue
         at not less than the aforesaid limit until required to be changed by
         Lender in writing by reason of changed economic conditions making such
         protection inadequate; and (C) to cover at least the following hazards:
         (1) premises and operations; (2) products and completed operations on
         an "if any" basis; (3) independent contractors; (4) blanket contractual
         liability for all legal contracts; and (5) liability that may arise
         from acts of terrorism;

                  (iii)    rental interruption insurance (A) with loss payable
         to Lender (allowing reimbursement to Borrower for reasonable operating
         costs during the interruption); (B) covering all risks required to be
         covered by the insurance provided for in subsection (i) above; (C)
         containing an unlimited period of restoration and extended period of
         indemnity endorsement which provides that after the physical loss to
         the Improvements and Equipment has been repaired, the continued loss of
         rental income will be insured until, such rental income either returns
         to the same level it was at prior to the loss, or the expiration of
         twelve (12) months from the date that the Trust Property is repaired or
         replaced and operations are resumed, whichever first occurs, and
         notwithstanding that the policy may expire prior to the end of such
         period, provided that the unlimited period of restoration endorsement
         may be limited to the length of time required with the exercise of due
         diligence and dispatch to rebuild, repair or replace the damaged or
         destroyed property; and (D) in an amount equal to one hundred percent
         (100%) of the projected gross income from the Trust Property for a
         period of twelve (12) months from the date that the Property is
         repaired or replaced and operations are resumed. The amount of such
         rental interruption insurance shall be determined prior to the date
         hereof and at least once each year thereafter based on Borrower's
         reasonable

                                      -5-

<PAGE>

         estimate of the gross income from the Trust Property for the succeeding
         twelve (12) month period. Subject to the rights of Lender and subject
         to the provisions of paragraph 4(e)(x) below, all proceeds payable to
         Lender pursuant to this subsection shall be held by Lender and shall be
         applied to the obligations secured by the Loan Documents from time to
         time due and payable hereunder and under the Note; provided, however,
         that nothing herein contained shall be deemed to relieve Borrower of
         its obligations to pay the obligations secured by the Loan Documents on
         the respective dates of payment provided for in the Note and the other
         Loan Documents except to the extent such amounts are actually paid out
         of the proceeds of such rental interruption insurance;

                  (iv)     at all times during which structural construction,
         repairs or alterations are being made with respect to the Improvements,
         and only if the property coverage form does not otherwise apply, (A)
         owner's contingent or protective liability insurance covering claims
         not covered by or under the terms or provisions of the above mentioned
         commercial general liability insurance policy; and (B) the insurance
         provided for in subsection (i) above written in a so-called builder's
         risk completed value form (I) on a non-reporting basis, (2) against all
         risks insured against pursuant to subsection (i) and (iii) above, (3)
         including permission to occupy the Trust Property, and (4) with an
         agreed amount endorsement waiving co-insurance provisions;

                  (v)      Worker's Compensation insurance, as required by any
         governmental authority or any applicable legal requirements and
         Employer's Liability Insurance of not less than One Million and No/100
         Dollars ($1,000,000) for each occurrence;

                  (vi)     comprehensive boiler and machinery insurance in an
         amount of not less than Fifty Million and No/100 Dollars ($50,000,000)
         each occurrence on terms consistent with the commercial property
         insurance policy required under subsection (i) and (iii) above;

                  (vii)    umbrella liability insurance in an amount not less
         than One Hundred Million and No/100 Dollars ($100,000,000) per
         occurrence, on terms consistent with the commercial general liability
         insurance policy required under subsection (ii) above, on a portfolio
         basis naming the Trust Property and all other properties owned by
         Maguire Properties, L.P., a Maryland limited partnership (the "OP")
         and/or its Affiliates; provided, that such insurance may be provided
         under a blanket insurance Policy so long as the coverage required
         pursuant to this clause is not reduced below the per occurrence limit
         set forth in this clause;

                  (viii)   motor vehicle liability coverage for all owned and
         non-owned vehicles, including rented and leased vehicles containing
         minimum limits per occurrence, including umbrella coverage, of Five
         Million and No/100 Dollars ($5,000,000);

                  (ix)     if the Property is or becomes a legal
         "non-conforming" use, ordinance or law coverage and insurance coverage
         to compensate for the cost of demolition or rebuilding of the undamaged
         portion of the Trust Property along with any reduced value and the
         increased cost of construction in amounts as requested by Lender;

                                      -6-

<PAGE>

                  (x)      if "certified acts of terrorism", as declared by the
         United States Government, are now or hereafter excluded from Borrower's
         comprehensive all risk insurance policy or business income coverage,
         Borrower shall obtain an endorsement to such policies, or separate
         policies, insuring against all such "certified acts of terrorism" (such
         acts or events so excluded, "TERRORISM ACTS"), at Borrower's option,
         either (A) in an amount not less than Three Hundred Million and No/100
         Dollars ($300,000,000) on an aggregate basis covering the Trust
         Property and all other properties owned by the OP and/or its Affiliates
         as of the date hereof and providing for a deductible not exceeding
         $1,000,000.00 or (B) in a total amount not less than Three Hundred and
         Fifty Million and No/100 Dollars ($350,000,000) on an aggregate basis
         covering the Trust Property and all other properties owned by the OP
         and/or its Affiliates as of the date hereof and providing for a
         deductible of not in excess of 5% of the full replacement value of the
         Trust Property; in either case, the endorsement or policy shall be (x)
         in form and substance reasonably satisfactory to Lender; and (y)
         non-cancelable (to the. extent such non-cancelable insurance is
         available in the marketplace) (insurance meeting such requirements
         being referred to herein as "FULL COVERAGE"); provided the Borrower
         shall not be required to spend in excess of Three Million and No/100
         Dollars ($3,000,000.00) per annum for such coverage and, in the event
         that Full Coverage is not available at a cost of $3,000,000 per annum,
         then Borrower shall purchase insurance covering Terrorism Acts in an
         amount equal to the principal balance of the Loan, but shall not be
         required to maintain the full amount of such coverage if such coverage
         is not available at a cost of $3,000,000 per annum or less, provided
         that in the event that $3,000,000 is not sufficient to purchase such
         coverage in an amount equal to the principal balance of the Loan, then
         Borrower shall obtain the greatest amount of coverage obtainable at a
         cost of $3,000,000 per annum;

In the event that the limits of insurance in place covering Terrorism Acts on a
portfolio basis are exhausted by damage to a property other than the Trust
Property, then Borrower shall restore the coverage provided for in clause (x)
above (or any lesser amount of coverage that is available if such coverage is
not available), to the extent such insurance is commercially available; and

                  (xi)     upon sixty (60) days' written notice, such other
         reasonable insurance and in such reasonable amounts as Lender from time
         to time may reasonably request against such other insurable hazards
         which at the time are commonly insured against for property similar to
         the Trust Property located in or around the region in which the Trust
         Property is located.

                  (b)      All insurance provided for in paragraph 3(a) shall be
obtained under valid and enforceable policies (collectively, the "POLICIES" or
in the singular, the "POLICY"), and shall be subject to the reasonable approval
of Lender as to insurance companies, amounts, deductibles, loss payees and
insureds. The Policies (or a "cut-through" endorsement, approved by Lender, with
respect to any such Policy) shall be issued by financially sound and responsible
insurance companies authorized to do business in the State and, except in the
case of flood hazard insurance and earthquake insurance, having either (i) a
claims paying ability rating of "A" or better by Standard and Poor's Ratings
Services ("S&P") and an equivalent rating by Moody's Investors Services, Inc.
("MOODY'S") or (ii) if the Policies are provided through a syndicate of
companies, (A) at least 75% of the coverage and first layer of coverage shall
have a claims

                                      -7-

<PAGE>

paying ability rating of "A, X" or better (and the equivalent thereof) by A.M.
Best's Key Rating Guide ("BEST"), (B) no more than 15% of the Policies shall
have a claims paying ability rating of "A, VIII" or less by Best and (C) no more
than 10% of the Policies shall have a claims paying ability rating of "A-, VII"
or less by Best's. The Policies described in paragraph 3(a) (other than those
strictly limited to liability protection) shall designate Lender as loss payee
and Lender shall be an additional named insured, as its interests may appear.
Not less than ten (10) days prior to the expiration dates of the Policies
theretofore furnished to Lender, certificates of insurance evidencing the
Policies accompanied by evidence satisfactory to Lender of payment of the
premiums due thereunder shall be delivered by Borrower to Lender.

                  (c)      Subject to the provisions of paragraph 6 hereof,
Borrower shall pay the premiums for such Policies (the "INSURANCE PREMIUMS") as
the same become due and payable and shall furnish to Lender evidence of the
renewal of each of the Policies with receipts for the payment of the Insurance
Premiums or other evidence of such payment reasonably satisfactory to Lender
(provided, however, that Borrower is not required to furnish such evidence of
payment to Lender in the event that such Insurance Premiums have been paid by
Lender pursuant to paragraph 6 hereof). If Borrower is required to furnish such
evidence and receipts pursuant to the preceding sentence and Borrower does not
furnish such evidence and receipts at least fifteen (15) days prior to the
expiration of any expiring Policy, then Lender may procure, but shall not be
obligated to procure, such insurance and pay the Insurance Premiums therefor,
and Borrower agrees to reimburse Lender for the cost of such Insurance Premiums
promptly on demand. Within thirty (30) Business Days after request by Lender,
Borrower shall obtain such increases in the amounts of coverage required
hereunder as may be reasonably requested by Lender, taking into consideration
changes in the value of money over time, changes in liability laws, changes in
prudent customs and practices of owners of property similar to the Trust
Property located in or around the region in which the Trust Property is located
and as may be available at commercially reasonable rates. Lender acknowledges
that the Policies delivered with respect to the Trust Property as of the date
hereof satisfy the requirements of this paragraph 3. Such approval shall
continue in effect until the expiration or termination of such Policies provided
that there is not a downgrade by S&P, Moody's or Best Insurance Reports of any
insurer providing such Policies and, as a result thereof, Borrower fails to
satisfy the rating criteria set forth in paragraph 3(b). Any renewal or
replacement of such Policies, however, shall require Lender's approval as
provided above in this paragraph 3 unless (i) the companies providing such
renewal or replacement Policies are licensed to do business in the state where
the Trust Property is located and have a claims paying ability rating by S&P,
Moody's and Best that satisfy the requirements set forth in paragraph 3(b) above
or that, subject to the provisions of paragraph 3(e) below, such rating is no
less than the rating as of the date hereof of the company providing the
insurance approved by Lender as of the date hereof, (ii) the coverage provided
by such renewal or replacement Policies is no less than the coverage approved by
Lender as of the date hereof, (iii) such renewal or replacement Policies contain
in all material respects the same terms and conditions as the Policies approved
by Lender as of the date hereof and (iv) Lender has not notified Borrower in
accordance with this paragraph 3 that the requirements for the Policies have
changed since the date hereof.

                  (d)      The insurance coverage required under this paragraph
3 may be effected under one or more blanket Policies covering the Trust Property
and other property and assets not constituting a part of the Trust Property;
provided that any blanket Policy shall specify, except in

                                      -8-

<PAGE>

the case of general liability insurance, the portion of the total coverage of
such blanket Policy that is allocated exclusively to the Trust Property and
shall comply in all respects with the requirements of this paragraph 3. Lender
hereby confirms that it approves (i) the terms of the existing Property
Insurance Sharing Agreement among Borrower and certain of its Affiliates, and
(ii) that the Insurance Premiums are financed through one or more finance
companies (individually and/or collectively, the "BLANKET INSURANCE PREMIUM
FINANCING ARRANGEMENT") to whom Borrower pays Borrower's allocable share of the
annual initial deposit and the monthly payments due for each blanket Policy to
the applicable finance company (with respect to each blanket Policy, such
monthly payment, together with one-twelfth (l/12th) of the allocable share of
the annual initial deposit necessary to accumulate such allocable share for such
Policy at least thirty (30) days prior to its due date, each a "FINANCING
INSTALLMENT").

                  (e)      Notwithstanding anything to the contrary contained in
this paragraph 3, Lender shall accept an "all-risk" Policy issued by Factory
Mutual Insurance Company ("FACTORY-MUTUAL"), so long as (I) Factory Mutual
maintains a general policy rating of "BBB" or better and a financial class of
"XIV" or better by Best and a claims paying ability rating of "A+" or better by
Fitch, and (II) in connection with any Securitization, Lender confirms that, in
Lender's reasonable determination based on information provided by any Rating
Agency, the ratings assigned to the portion of the Securitization represented by
the Loan will not be adversely affected as a result of such "all-risk" Policy
being issued by Factory Mutual. In the event that both of the conditions set
forth in clause (I) and (II) above are not being met at all times, then Borrower
shall at all times, at its sole cost and expense, maintain an "all risk" policy
that is otherwise in compliance with all of the applicable provisions of this
paragraph 3 and applicable Rating Agency requirements; provided that Borrower
shall have thirty (30) days (or such shorter period if the existing policies
would lapse prior to the end of such 30-day period) after the earlier of (A) the
failure of the condition in clause (I) above or (B) the date Lender notifies
Borrower of Lender's confirmation pursuant to clause (II) above to obtain an
"all risk" Policy meeting such applicable provisions and requirements (which may
be obtained through the issuance of a so-called "cut-through" endorsement).

                  4.       CASUALTY.

                  (a)      If the Trust Property shall be damaged or destroyed,
in whole or in part, by fire or other casualty (a "CASUALTY"), Borrower shall
give prompt notice thereof to Lender. Following the occurrence of a Casualty,
Borrower, regardless of whether insurance proceeds are available, shall promptly
proceed to restore, repair, replace or rebuild the same to be of at least equal
value and of substantially the same character as prior to such damage or
destruction (a "CASUALTY RESTORATION"), all to be effected in accordance with
applicable law.

                  (b)      If a Casualty covered by any of the Policies (an
"INSURED CASUALTY") occurs where the loss does not exceed $2,500,000, provided
no Default or Event of Default has occurred and is continuing, Borrower may
settle and adjust any claim without the prior consent of Lender; provided such
adjustment is carried out in a competent and timely manner, and Borrower is
hereby authorized to collect and receipt for the Insurance Proceeds (as
hereinafter defined). In the event of an Insured Casualty where the loss exceeds
$2,500,000 (a "SIGNIFICANT CASUALTY"), Lender may, in its sole discretion,
settle and adjust any claim without the consent of Borrower and agree with the
insurer(s) in a commercially reasonable manner on the amount to be

                                      -9-

<PAGE>

paid on the loss, and the Proceeds shall be due and payable solely to Lender and
held by Lender in the Casualty/Condemnation Subaccount and disbursed in
accordance herewith. If Borrower or any party other than Lender is a payee on
any check representing Proceeds with respect to a Significant Casualty, Borrower
shall immediately endorse, and cause all such third parties to endorse, such
check payable to the order of Lender. Borrower hereby irrevocably appoints
Lender as its attorney-in-fact, coupled with an interest, to endorse such check
payable to the order of Lender. The expenses incurred by Lender in the
settlement, adjustment and collection of the Proceeds shall become part of the
Debt and shall be reimbursed by Borrower to Lender upon demand. Notwithstanding
anything to the contrary contained herein, if in connection with a Casualty any
insurance carrier makes a payment under a property insurance Policy that
Borrower proposes be treated as business or rental interruption insurance, then,
notwithstanding any designation (or lack of designation) by the insurance
carrier as to the purpose of such payment, as between Lender and Borrower, such
payment shall not be treated as business or rental interruption insurance
proceeds unless Borrower has demonstrated to Lender's reasonable satisfaction
that the remaining net Proceeds that will be received from the property
insurance carriers are sufficient to pay 100% of the cost of fully restoring the
Improvements or, if such net Proceeds are to be applied to repay the Debt in
accordance with the terms hereof, that such remaining net Proceeds, together
with any portion of the amount treated as business or rental interruption
insurance that will be paid to Lender, will be sufficient to pay the Debt in
full.

                  (c)      Borrower shall promptly give Lender written notice of
the actual or threatened commencement of any condemnation or eminent domain
proceeding (a "CONDEMNATION") and shall deliver to Lender copies of any and all
papers served in connection with such Condemnation. Following the occurrence of
a Condemnation, Borrower, regardless of whether an Award (hereinafter defined)
is available, shall promptly proceed to restore, repair, replace or rebuild the
same to the extent practicable to be of at least equal value and of
substantially the same character as prior to such Condemnation (a "CONDEMNATION
RESTORATION", together with a Casualty Restoration, collectively A
"RESTORATION"), all to be effected in accordance with applicable law.

                  (d)      Lender is hereby irrevocably appointed as Borrower's
attorney-in-fact, coupled with an interest, with exclusive power to collect,
receive and retain any award or payment ("AWARD") for any taking accomplished
through a Condemnation (a "TAKING") and to make any commercially reasonable
compromise or settlement in connection with any such Condemnation, subject to
the provisions of this Deed of Trust. Notwithstanding the foregoing, Borrower
shall have the right, provided no Default or Event of Default has occurred and
is continuing, to compromise and collect or receive any award that does not
exceed $2,500,000. Notwithstanding any Taking by any public or quasi-public
authority (including, without limitation, any transfer made in lieu of or in
anticipation of such a Taking), Borrower shall continue to pay the Debt at the
time and in the manner provided for in the Note, in this Deed of Trust and the
other Loan Documents and the Debt shall not be reduced unless and until any
Award shall have been actually received and applied by Lender to expenses of
collecting the Award and to discharge of the Debt. Lender shall not be limited
to the interest paid on the Award by the condemning authority but shall be
entitled to receive out of the Award interest at the rate or rates provided in
the Note. Borrower shall cause any Award that is payable to Borrower to be paid
directly to Lender. The expenses incurred by Lender in the adjustment and

                                      -10-

<PAGE>

collection of the Award shall become part of the Debt and be secured hereby and
shall be reimbursed by Borrower to Lender upon demand.

                  (e)      RESTORATION. The following provisions shall apply in
connection with the Restoration of the Premises and Improvements:

                  (i)      If the Net Proceeds (hereinafter defined) shall be
         less than Two Million Five Hundred Thousand and No/100 Dollars
         ($2,500,000) and the costs of completing the Restoration shall be less
         than Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000),
         the Net Proceeds will be disbursed by Lender to Borrower upon receipt,
         provided that all of the conditions set forth in paragraph 4(e)(iii)(A)
         are met and Borrower delivers to Lender a written undertaking to
         expeditiously commence and to satisfactorily complete with due
         diligence the Restoration in accordance with the terms of this Deed of
         Trust.

                  (ii)     If the Net Proceeds are equal to or greater than Two
         Million Five Hundred Thousand and No/100 Dollars ($2,500,000) or the
         costs of completing the Restoration is equal to or greater than Two
         Million Five Hundred Thousand and No/100 Dollars ($2,500,000) Lender
         shall make the Net Proceeds available for the Restoration in accordance
         with the provisions of this paragraph 4. The term "NET PROCEEDS" for
         purposes of this paragraph 4 shall mean: (A) the net amount of all
         insurance proceeds received by Lender pursuant to paragraph 3(a)(i),
         (iv), (vi), (ix) and (x) (and any similar or comparable types of
         insurance obtained pursuant to paragraph 3(a)(xi)) as a result of such
         damage or destruction, after deduction of its reasonable costs and
         expenses (including, but not limited to, reasonable counsel fees), if
         any, in collecting same ("INSURANCE PROCEEDS"), or (B) the net amount
         of the Award, after deduction of its reasonable costs and expenses
         (including, but not limited to, reasonable counsel fees), if any,
         actually incurred in collecting same ("CONDEMNATION PROCEEDS"),
         whichever the case may be.

                  (iii)    The Net Proceeds shall be made available to Borrower
         for Restoration provided that each of the following conditions are met:

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

                           (B)      (1) in the event the Net Proceeds are
                  Insurance Proceeds, less than thirty percent (30%) of the
                  total floor area of the Improvements has been damaged,
                  destroyed or rendered unusable as a result of such fire or
                  other casualty or (2) in the event the Net Proceeds are
                  Condemnation Proceeds, less than fifteen percent (15%) of the
                  land constituting the Premises is taken, and such land is
                  located along the perimeter or periphery of the Premises, and
                  no portion of the Improvements is located in such land;

                           (C)      The Required Leases (hereinafter defined)
                  and Leases demising in the aggregate a percentage amount equal
                  to or greater than the Rentable Space Percentage (hereinafter
                  defined) of the total rentable space in the Improvements shall
                  remain in full force and effect during and after the
                  completion of the

                                      -11-

<PAGE>

                  Restoration, notwithstanding the occurrence of any such fire
                  or other casualty or taking, whichever the case may be, and
                  will require the tenants thereunder to make all necessary
                  repairs and restorations thereto at their sole cost and
                  expense. The term (x) "RENTABLE SPACE PERCENTAGE" shall mean
                  (1) in the event the Net Proceeds are Insurance Proceeds, a
                  percentage amount equal to seventy-five percent (75%) and (2)
                  in the event the Net Proceeds are Condemnation Proceeds, a
                  percentage amount equal to seventy-five percent (75%) which
                  Rentable Space Percentage shall, in each case, include each of
                  the Required Leases. For purposes of the foregoing, the
                  "REQUIRED LEASES" shall mean, collectively, the Leases with
                  Pacific Enterprises, Latham & Watkins LLP, Holland & Knight
                  LLP, US Bancorp, White & Case LLP and Wells Fargo Bank,
                  National Association or any replacement Lease executed and
                  delivered in accordance with the terms and provisions of
                  paragraph 8 hereof with respect to the space demised to any of
                  the foregoing tenants, provided such replacement Lease demises
                  not less than 50,000 square feet;

                           (D)      Borrower shall commence the Restoration as
                  soon as reasonably practicable (but in no event later than
                  ninety (90) days after such damage or destruction or taking,
                  whichever the case may be, occurs) and shall diligently pursue
                  the same to satisfactory completion;

                           (E)      Lender shall be reasonably satisfied that
                  any operating deficits, including all scheduled payments of
                  principal and interest under the Note, which will be incurred
                  with respect to the Trust Property as a result of the
                  occurrence of any such fire or other casualty or taking,
                  whichever the case may be, will be covered out of (1) the Net
                  Proceeds, (2) the insurance coverage referred to in paragraph
                  3(a)(iii), if applicable, or (3) by other funds of Borrower;

                           (F)      Lender shall be satisfied that the
                  Restoration will be completed on or before the earliest to
                  occur of (1) six (6) months prior to the Maturity Date, (2)
                  the earliest date required for such completion under the terms
                  of any Required Lease, (3) such time as may be required under
                  applicable zoning law, ordinance, rule or regulation in order
                  to repair and restore the Property to the condition it was in
                  immediately prior to such fire or other casualty or to as
                  nearly as possible the condition it was in immediately prior
                  to such taking, as applicable or (4) the expiration of the
                  insurance coverage referred to in paragraph 3(a)(iii);

                           (G)      the Trust Property and the use thereof after
                  the Restoration will be in compliance with and permitted under
                  all applicable zoning laws, ordinances, rules and regulations
                  and all necessary operating or reciprocal easement agreements
                  for the operation and maintenance of the Property are, or
                  remain, in effect;

                           (H)      the Restoration shall be done and completed
                  by Borrower in an expeditious and diligent fashion and in
                  compliance with all applicable governmental laws, rules and
                  regulations (including, without limitation, all applicable
                  environmental laws); and

                                      -12-

<PAGE>

                           (I)      such fire or other casualty or taking, as
                  applicable, does not result in a material loss of access to
                  the Trust Property.

                  (iv)     Unless such amounts are payable to Borrower pursuant
         to this paragraph 4, the Net Proceeds shall be held by Lender in an
         interest-bearing account for the benefit of Borrower (which interest
         shall be added to and become a part of the Net Proceeds) and, until
         disbursed in accordance with the provisions of this paragraph 4, shall
         constitute additional security for the Debt and other obligations under
         the Loan Documents. The Net Proceeds shall be disbursed by Lender to,
         or as directed by, Borrower from time to time during the course of the
         Restoration, upon receipt of evidence reasonably satisfactory to Lender
         that (A) all materials installed and work and labor performed (except
         to the extent that they are to be paid for out of the requested
         disbursement) in connection with the Restoration have been paid for in
         full, and (B) there exist no notices of pendency, stop orders,
         mechanic's or materialman's liens or notices of intention to file same,
         or any other liens or encumbrances of any nature whatsoever on the
         Trust Property arising out of the Restoration which have not either
         been fully bonded to the satisfaction of Lender and discharged of
         record or in the alternative fully insured to the reasonable
         satisfaction of Lender by the title company issuing the title insurance
         policy.

                  (v)      All plans and specifications required in connection
         with any Restoration following a Casualty or Condemnation resulting in
         Net Proceeds of $2,500,000 or more shall be subject to prior review and
         reasonable acceptance in all respects by Lender and by an independent
         consulting engineer selected by Lender (the "CASUALTY CONSULTANT")
         provided that if the correspondence from Borrower to Lender requesting
         approval of any such plans and specifications (or contractors,
         subcontractors or materialmen in connection therewith) contains a bold
         faced, conspicuous legend at the top of the first page stating that "TF
         YOU FAIL TO RESPOND TO THIS REQUEST FOR APPROVAL TN WRITING WITHIN 15
         BUSINESS DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN", and if Lender
         fails to respond to such request for approval in writing within fifteen
         (15) Business Days after receipt by Lender of such written request, the
         related plans and specifications and all information reasonably
         required in order to adequately review the same, then such approval
         will be deemed given. Lender shall have the use of the plans and
         specifications and all permits, licenses and approvals required or
         obtained in connection with the Restoration. The identity of the
         contractors, subcontractors and materialmen engaged in any Restoration
         following a Casualty or Condemnation resulting in Net Proceeds of
         $2,500,000 or more, as well as the contracts under which they have been
         engaged, shall be subject to prior review and acceptance by Lender and
         the Casualty Consultant, which acceptance shall not be unreasonably
         withheld, conditioned or delayed. All costs and expenses incurred by
         Lender in connection with making the Net Proceeds available for the
         Restoration including, without limitation, reasonable counsel fees and
         disbursements and the Casualty Consultant's fees, shall be paid by
         Borrower.

                  (vi)     In no event shall Lender be obligated to make
         disbursements of the Net Proceeds in excess of an amount equal to the
         costs actually incurred from time to time for work in place as part of
         the Restoration, as certified by the Casualty Consultant, minus the
         Casualty Retainage. The term "CASUALTY RETAINAGE" shall mean an amount
         equal to

                                      -13-

<PAGE>

         ten percent (10%) of the hard costs actually incurred for work in place
         as part of the Restoration, as certified by the Casualty Consultant,
         until the Restoration has been completed. The Casualty Retainage shall
         in no event, and notwithstanding anything to the contrary set forth
         above in this paragraph 4(e), be less than the amount actually held
         back by Borrower from contractors, subcontractors and materialmen
         engaged in the Restoration. The Casualty Retainage shall not be
         released until the Casualty Consultant certifies to Lender that the
         Restoration has been completed in accordance with the provisions of
         this paragraph 4(e) and that all approvals necessary for the
         re-occupancy and use of the Property have been obtained from all
         appropriate governmental and quasi-governmental authorities, and Lender
         receives evidence satisfactory to Lender that the costs of the
         Restoration have been paid in full or will be paid in full out of the
         Casualty Retainage; provided, however, that Lender will release the
         portion of the Casualty Retainage being held with respect to any
         contractor, subcontractor or materialman engaged in the Restoration as
         of the date upon which the Casualty Consultant certifies to Lender that
         the contractor, subcontractor or materialman has satisfactorily
         completed all work and has supplied all materials in accordance with
         the provisions of the contractor's, subcontractor's or materialman's
         contract, the contractor, subcontractor or materialman delivers the
         lien waivers and evidence of payment in full of all sums due to the
         contractor, subcontractor or materialman as may be reasonably requested
         by Lender or by the title company issuing the title insurance policy,
         and Lender receives an endorsement to the title insurance policy
         insuring the continued priority of the lien of the this Deed of Trust
         and evidence of payment of any premium payable for such endorsement. If
         required by Lender, the release of any such portion of the Casualty
         Retainage shall be approved by the surety company, if any, which has
         issued a payment or performance bond with respect to the contractor,
         subcontractor or materialman.

                  (vii)    Lender shall not be obligated to make disbursements
         of the Net Proceeds more frequently than once every calendar month.

                  (viii)   If at any time the Net Proceeds or the undisbursed
         balance thereof shall not, in the reasonable opinion of Lender in
         consultation with the Casualty Consultant, be sufficient to pay in full
         the balance of the costs which are estimated by the Casualty Consultant
         to be incurred in connection with the completion of the Restoration,
         Borrower shall deposit the deficiency (the "NET PROCEEDS DEFICIENCY")
         with Lender before any further disbursement of the Net Proceeds shall
         be made. The Net Proceeds Deficiency deposited with Lender shall be
         held by Lender and shall be disbursed for costs actually incurred in
         connection with the Restoration on the same conditions applicable to
         the disbursement of the Net Proceeds, and until so disbursed pursuant
         to this paragraph 4(e) shall constitute additional security for the
         Debt and other obligations under the Loan Documents.

                  (ix)     The excess, if any, of the Net Proceeds and the
         remaining balance, if any, of the Net Proceeds Deficiency deposited
         with Lender after the Casualty Consultant certifies to Lender that the
         Restoration has been completed in accordance with the provisions of
         this paragraph 4(e), and the receipt by Lender of evidence satisfactory
         to Lender that all costs incurred in connection with the Restoration
         have been paid in full, shall be remitted by Lender to Borrower,
         provided no Event of Default shall have

                                      -14-

<PAGE>

         occurred and shall be continuing under the Note, this Deed of Trust or
         any of the other Loan Documents.

                  (x)      Notwithstanding the last sentence of paragraph
         3(a)(iii) and provided no Event of Default exists hereunder, proceeds
         received by Lender on account of the rental or business interruption
         insurance specified in paragraph 3(a)(iii) above with respect to any
         Casualty shall be deposited by Lender directly into the Cash Collateral
         Account (as defined in the Cash Management Agreement) and allocated as
         Rents in accordance with paragraph 10(a)(i) through (xiv) of the Note
         but (a) only to the extent it reflects a replacement for (i) lost Rents
         that would have been due under Leases existing on the date of such
         Casualty, and/or (ii) lost Rents under Leases that had not yet been
         executed and delivered at the time of such Casualty which Borrower has
         proven to the insurer under the related Policy would have been due
         under such Leases (and then only to the extent such proceeds disbursed
         by such insurer reflect a replacement for such past due Rents) and (b)
         only to the extent necessary to fully make the disbursements required
         by paragraph 10(a)(i) through (xiv) of the Note. All other such
         proceeds shall be held by Lender and disbursed in accordance with this
         paragraph 4(e).

                  (f)      All Net Proceeds not required (i) to be made
available for the Restoration or (ii) to be returned to Borrower as excess Net
Proceeds pursuant to paragraph 4(e)(ix) may be retained and applied by Lender
toward the payment of the Debt whether or not then due and payable in such
order, priority and proportions as Lender in its sole discretion shall deem
proper, or, at the discretion of Lender, the same may be paid, either in whole
or in part, to Borrower for such purposes as Lender shall designate, in its
discretion. So long as no Event of Default has occurred and is continuing, any
application of Net Proceeds to the Debt shall not require any payment of the
Yield Maintenance Premium or any other premium or penalty.

                  5.       PAYMENT OF TAXES, ETC. Subject to the provisions of
paragraph 6 hereof, Borrower shall pay all taxes, assessments, water rates and
sewer rents, now or hereafter levied or assessed or imposed against the Trust
Property or any part thereof (the "TAXES") on or before the last date prior to
which any interest, late fees or penalties would begin to accrue (the
"DELINQUENCY DATE") and all ground rents, maintenance charges, other
impositions, and other charges, including, without limitation, vault charges and
license fees for the use of vaults, chutes and similar areas adjoining the
Premises, now or hereafter levied or assessed or imposed against the Trust
Property or any part thereof (the "OTHER CHARGES") as the same become due and
payable. Borrower will deliver to Lender receipts for payment or other evidence
satisfactory to Lender that the Taxes and Other Charges have been so paid or are
not then delinquent no later than the date on which the Taxes and/or Other
Charges would otherwise be delinquent if not paid; provided, however, Borrower
shall not be required to deliver to Lender such evidence of payment with respect
to any Taxes or Other Charges that are paid by Lender pursuant to paragraph 6
hereof. Borrower shall not suffer and shall promptly cause to be paid and
discharged any lien or charge whatsoever which may be or become a lien or charge
against the Trust Property, and shall promptly pay for all utility services
provided to the Trust Property.

                                      -15-

<PAGE>

                  6.       TAX AND INSURANCE IMPOUND FUND; DEFERRED MAINTENANCE
ESCROW FUND; US BANCORP ESCROW FUND; OUTSTANDING TENANT ALLOWANCE ESCROW FUND;
REPLACEMENT/LEASING ESCROW FUND.

                  (a)      Borrower shall pay to Lender (i) (A) with respect to
Taxes that are required to be paid prior to December 10, 2003 (which date is the
last date prior to which any interest, late fees or penalties would commence
accruing with respect to Taxes due and payable on November 1, 2003), on the date
hereof an amount equal to $1,059,009 and on each Payment Date (as defined in the
Note) up to and including the Payment Date occurring in November, 2003, an
amount equal to $264,752 and (B) on each Payment Date from and after the Payment
Date occurring in December, 2003, one-twelfth of the Taxes that Lender estimates
will be payable during the next ensuing twelve (12) months in order to
accumulate with Lender sufficient funds to pay all such Taxes at least thirty
(30) days prior to their Delinquency Date, and (ii)(A) on the date hereof, an
amount equal to $192,483 and (B)(1) for so long as the applicable Blanket
Insurance Premium Financing Arrangement remains in full force and effect, on
each Payment Date (as defined in the Note) the Financing Installment for the
next occurring payment under the applicable Blanket Insurance Premium Financing
Arrangement and/or (2) with respect to any Insurance Premiums not covered by a
Blanket Insurance Premium Financing Arrangement, on each Payment Date (as
defined in the Note) one-twelfth of the Insurance Premiums that Lender estimates
will be payable for the renewal of the coverage afforded by the Policies upon
the expiration thereof in order to accumulate with Lender sufficient funds to
pay all such Insurance Premiums at least thirty (30) days prior to the
expiration of the Policies (said amounts in (i) and (ii) above hereinafter
called the "TAX AND INSURANCE IMPOUND FUND"). Lender will apply the Tax and
Insurance Impound Fund to payments of Taxes and Insurance Premiums required to
be made by Borrower pursuant to paragraphs 3 and 5 hereof and/or to payments due
to the applicable finance company under the applicable Blanket Insurance Premium
Financing Arrangement, as applicable. In making any payment relating to the Tax
and Insurance Impound Fund, Lender may do so according to any bill, statement or
estimate procured from the appropriate public office (with respect to Taxes) or
insurer or agent (with respect to Insurance Premiums), without inquiry into the
accuracy of such bill, statement or estimate or into the validity of any tax,
assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount
of the Tax and Insurance Impound Fund shall exceed the amounts due for Taxes and
Insurance Premiums pursuant to paragraphs 3 and 5 hereof, Lender shall, in its
sole discretion, return any excess to Borrower or credit such excess against
future payments to be made to the Tax and Insurance Impound Fund. In allocating
such excess, Lender may deal with the person shown on the records of Lender to
be the owner of the Trust Property. If at any time Lender determines that the
Tax and Insurance Impound Fund is not or will not be sufficient to pay the items
set forth in (i) and (ii) above, Lender shall notify Borrower of such
determination and Borrower shall increase its monthly payments to Lender by the
amount that Lender estimates is sufficient to make up the deficiency at least
thirty (30) days prior to delinquency of the Taxes and/or expiration of the
Policies, as the case may be. Until expended or applied as above provided, any
amounts in the Tax and Insurance Impound Fund shall constitute additional
security for the Debt. The Tax and Insurance Impound Fund shall not constitute a
trust fund and may be commingled with other monies held by Lender. The Tax and
Insurance Impound Fund shall be held in an interest bearing account in Lender's
name at a financial institution selected by Lender in its sole discretion. All
earnings or interest on the Tax and Insurance Impound Fund

                                      -16-

<PAGE>

shall become part of the Tax and Insurance Impound Fund and shall be disbursed
in accordance with this paragraph 6(a). If Lender so elects at any time,
Borrower shall provide, at Borrower's expense, a tax service contract for the
Term issued by a tax reporting agency acceptable to Lender. If Lender does not
so elect, Borrower shall reimburse Lender for the cost of making annual tax
searches throughout the Term.

                  (b)      Borrower shall pay to Lender on the date hereof the
sum of Six Thousand Two Hundred Fifty and No/100 Dollars ($6,250.00) which shall
be deposited with and held by Lender for repairs required to be made to the
Trust Property on or prior to the date that is twelve (12) months from the date
hereof, as such repairs are more particularly described on Exhibit C attached
hereto ("DEFERRED MAINTENANCE FUND"). Lender shall make disbursements from the
Deferred Maintenance Fund as requested by Borrower, and approved by Lender in
its sole discretion, no more frequently than once in any thirty (30) day period
of no less than $1,000.00 upon delivery by Borrower of Lender's standard form of
draw request accompanied by copies of invoices for the amounts requested and, if
required by Lender for requests in excess of $50,000.00 for a single item,
conditional lien waivers and releases from all parties furnishing materials
and/or services in connection with the requested payment. Lender may issue joint
checks payable to Borrower and the contractor or other person to whom payment is
due with respect to any requested payment. Lender may require an inspection of
the Trust Property at Borrower's expense prior to making a monthly disbursement
in order to verify completion of repairs of items in excess of $50,000.00 for
which reimbursement or payment is sought. The Deferred Maintenance Fund shall be
held in an interest bearing account in Lender's name at a financial institution
selected by Lender in its sole discretion. All earnings or interest on the
Deferred Maintenance Fund shall be and become part of such Deferred Maintenance
Fund and shall be disbursed as provided in this paragraph 6(b) Upon completion
of the work set forth in Exhibit C attached hereto, provided no Event of Default
is then continuing, Lender shall disburse to Borrower any and all funds
remaining on deposit in the Deferred Maintenance Fund. Until expended, applied
or released as above provided, the Deferred Maintenance Fund shall constitute
additional security for the Debt. The Deferred Maintenance Fund shall not
constitute a trust fund and may be commingled with other monies held by Lender.

                  (c)      Subject to the provisions of paragraph 6(g) below,
Borrower shall pay to Lender on the date hereof an amount equal to $5,999,993
(the "UPFRONT US BANCORP RESERVE AMOUNT") which shall be deposited with and held
by Lender for the tenant improvement and leasing commission obligations of
Borrower (the "US BANCORP TI/LC OBLIGATIONS") outstanding on the date hereof
with respect to the US Bancorp Space (the "US BANCORP ESCROW FUND"). In addition
to the Upfront US Bancorp Reserve Amount, Borrower shall deposit the following
amounts into the US Bancorp Escrow Fund: (i) on each Payment Date from and
including April 1, 2004 up to and including March 1, 2005, all Excess Cash Flow
(as defined in the Note), but only until such time as there has been deposited
in the US Bancorp Escrow Fund an additional amount of $1,134,928 for such period
from and after April 1, 2004; and (ii) on each Payment Date from and including
January 1, 2006 up to and including December 1, 2006, all Excess Cash Flow (as
defined in the Note), but only until such time as there has been deposited in
the US Bancorp Escrow Fund an additional amount of $1,659,928 for such period
from and after January 1, 2006 (the foregoing deposits set forth in clauses (i)
and (ii) above, together with the Upfront US Bancorp Reserve Amount, are
hereinafter referred to as the "US BANCORP RESERVE AMOUNT"). Notwithstanding the
foregoing, a portion of the US Bancorp Reserve

                                      -17-

<PAGE>

Amount equal to the sum of (i) $368,446 of the amount deposited pursuant to
clause (i) above and the amount deposited pursuant to clause (ii) above
(collectively, the "26TH FLOOR BUILDOUT AMOUNT") shall be used solely for US
Bancorp TI/LC Obligations pertaining to the expansion of the US Bancorp Space to
include the 26th floor at the Trust Property. For purposes hereof, "US BANCORP
SPACE" shall mean that certain space located at the Trust Property consisting of
approximately 130,096 rentable square feet located on floors 1, 2, 24, 25, 28,
29 and 30 of the Improvements and demised under that certain Library Square
Office Lease and Branch Space Lease between Borrower and U.S. Bank, National
Association, dated as of March 27, 2003. Lender shall make disbursements from
the US Bancorp Escrow Fund for any US Bancorp TI/LC Obligations incurred by
Borrower. Lender shall make disbursements as requested by Borrower on a monthly
basis in increments of no less than $1,000.00 upon delivery by Borrower of
Lender's standard form of draw request accompanied by copies of invoices for the
amounts requested for such US Bancorp TI/LC Obligations and, if required by
Lender, for requests in excess of $50,000 (multiple payments made with respect
to one tenant or contractor or other person shall be aggregated for such $50,000
limit), conditional lien waivers and releases from all parties furnishing
materials and/or services in connection with the requested payment. Lender may
issue joint checks payable to Borrower and the contractor or other person to
whom payment is due with respect to any requested payment. Lender may require an
inspection of the Trust Property at Borrower's expense prior to making a monthly
disbursement in order to verify completion of improvements for which
reimbursement or payment is sought which costs in the aggregate in excess of
$50,000. The US Bancorp Escrow Fund shall be held in an interest bearing account
in Lender's name at a financial institution selected by Lender in its sole
discretion. All earnings or interest on the US Bancorp Escrow Fund shall be and
become part of such US Bancorp Escrow Fund and shall be disbursed as provided in
this paragraph 6(c). Upon payment in full of all US Bancorp TI/LC Obligations,
provided no Event of Default is then continuing, Lender shall disburse to
Borrower any and all funds remaining on deposit in the US Bancorp Escrow Fund.
Until expended, applied or released as above provided, the US Bancorp Escrow
Fund shall constitute additional security for the Debt. The US Bancorp Escrow
Fund shall not constitute a trust fund and may be commingled with other monies
held by Lender.

                  (d)      Subject to the provisions of paragraph 6(g) below,
Borrower shall pay to Lender on the date hereof an amount equal to $1,176,120
(the "OUTSTANDING TENANT ALLOWANCE AMOUNT") which shall be deposited with and
held by Lender for the tenant improvement and leasing commission obligations of
Borrower (the "OUTSTANDING TENANT ALLOWANCE OBLIGATIONS") outstanding on the
date hereof (as more particularly set forth on Exhibit D attached hereto) with
respect to all space at the Trust Property other than the US Bancorp Space (the
"OUTSTANDING TENANT ALLOWANCE ESCROW FUND"). Lender shall make disbursements
from the Outstanding Tenant Allowance Escrow Fund for any Outstanding Tenant
Allowance Obligations incurred by Borrower. Lender shall make disbursements as
requested by Borrower on a monthly basis in increments of no less than $1,000.00
upon delivery by Borrower of Lender's standard form of draw request accompanied
by copies of invoices for the amounts requested for such Outstanding Tenant
Allowance Obligations and, if required by Lender, for requests in excess of
$50,000 (multiple payments made with respect to one tenant or contractor or
other person shall be aggregated for such $50,000 limit), conditional lien
waivers and releases from all parties furnishing materials and/or services in
connection with the requested payment. Lender may issue joint checks payable to
Borrower and the contractor or other person to whom payment is due with respect
to any requested payment. Lender may require an inspection of the

                                      -18-

<PAGE>

Trust Property at Borrower's expense prior to making a monthly disbursement in
order to verify completion of improvements for which reimbursement or payment is
sought which costs in the aggregate in excess of $50,000. The Outstanding Tenant
Allowance Escrow Fund shall be held in an interest bearing account in Lender's
name at a financial institution selected by Lender in its sole discretion. All
earnings or interest on the Outstanding Tenant Allowance Escrow Fund shall be
and become part of such Outstanding Tenant Allowance Escrow Fund and shall be
disbursed as provided in this paragraph 6(d). Upon payment in full of all
Outstanding Tenant Allowance Obligations, provided no Event of Default is then
continuing, Lender shall disburse to Borrower any and all funds remaining on
deposit in the Outstanding Tenant Allowance Escrow Fund. Until expended, applied
or released as above provided, the Outstanding Tenant Allowance Escrow Fund
shall constitute additional security for the Debt. The Outstanding Tenant
Allowance Escrow Fund shall not constitute a trust fund and may be commingled
with other monies held by Lender.

                  (e)      Intentionally Omitted.

                  (f)      (i) Subject to the provisions of paragraph 6(g)
below, Borrower shall pay to Lender (A) on each Payment Date the sum of $21,715
(the "MONTHLY REPLACEMENT ESCROW AMOUNT"') which shall be deposited with and
held by Lender for capital improvements, replacements and repairs required to be
made to the Trust Property during the calendar year and for any other work
approved by Lender and (B) on each Payment Date the sum of $240,665.50 (the
"MONTHLY LEASING ESCROW DEPOSIT"), which shall be deposited with and held by
Lender for tenant improvement and leasing commission obligations incurred
following the date hereof. In addition to the Monthly Replacement Escrow Amount
and the Monthly Leasing Escrow Deposit, Borrower shall deposit into the
Replacement/Leasing Escrow Fund, on each Payment Date from and including July 1,
2004 up to and including June 1, 2007, an amount equal to $208,333 ("ADDITIONAL
MONTHLY LEASING ESCROW DEPOSIT"; each of the Monthly Replacement Escrow Amounts,
each of the Monthly Leasing Escrow Deposits and each of the Additional Monthly
Leasing Escrow Deposits are collectively hereinafter referred to as the
"REPLACEMENT/LEASING ESCROW FUND") which shall be deposited with and held by
Lender for additional tenant improvement and leasing commission obligations. The
amounts on deposit in the Replacement/Leasing Escrow Fund consisting of Monthly
Replacement Escrow Amounts shall be hereinafter referred to as the "REPLACEMENT
DEPOSITS" and the amounts on deposit in the Replacement/Leasing Escrow Fund
consisting of Monthly Leasing Escrow Deposits and Additional Monthly Leasing
Escrow Deposits shall be hereinafter referred to as the "LEASING DEPOSITS".
Lender may reasonably reassess its estimate of the monthly amount necessary to
be deposited into the Replacement/Leasing Escrow Fund and, upon notice to
Borrower, Borrower shall be required to deposit into the Replacement/Leasing
Escrow Fund each month such reassessed amount. Lender shall make disbursements
from that portion of the Replacement/Leasing Escrow Fund consisting of
Replacement Deposits as requested by Borrower, and approved by Lender in its
sole discretion, no more frequently than once in any thirty (30) day period of
no less than $1,000.00 upon delivery by Borrower of Lender's standard form of
draw request accompanied by copies of invoices for the amounts requested and, if
required by Lender for requests in excess of $50,000.00 for a single item,
conditional lien waivers and releases from all parties furnishing materials
and/or services in connection with the requested payment. Lender shall make
disbursements from that portion of the Replacement/Leasing Escrow Fund
consisting of Leasing Deposits for expenses reasonably

                                      -19-

<PAGE>

incurred by Borrower for new Leases, or extensions, modifications or renewals of
existing Leases, entered into by Borrower in accordance with the provisions of
paragraph 8 below, no more frequently than once in any thirty (30) day period in
increments of no less than $1,000.00 upon delivery by Borrower of Lender's
standard form of draw request accompanied by copies of invoices for the amounts
requested for tenant improvements and leasing commissions, the newly executed
Lease, extension, renewal, or modification (if not previously received by
Lender) and, if required by Lender, for requests in excess of $50,000 (multiple
payments made with respect to one tenant or contractor or other person shall be
aggregated for such $50,000 limit), conditional lien waivers and releases from
all parties furnishing materials and/or services in connection with the
requested payment. Notwithstanding anything to the contrary contained herein,
Borrower shall not be entitled to any funds from the Replacement/Leasing Escrow
Fund with respect to any tenant improvements or leasing commissions allocable to
the US Bancorp Space. Lender may issue joint checks payable to Borrower and the
contractor or other person to whom payment is due with respect to any requested
payment. Lender may require an inspection of the Trust Property at Borrower's
expense prior to making a monthly disbursement in order to verify completion of
improvements, replacements or repairs for which reimbursement or payment is
sought which costs in the aggregate in excess of $50,000. The
Replacement/Leasing Escrow Fund shall be held in an interest bearing account in
Lender's name at a financial institution selected by Lender in its sole
discretion. All earnings or interest on the Replacement/Leasing Escrow Fund
shall be and become part of such Replacement/Leasing Escrow Fund and shall be
disbursed as provided in this paragraph 6(f). Until expended or applied as above
provided, the Replacement/Leasing Escrow Fund shall constitute additional
security for the Debt. The Replacement/Leasing Escrow Fund shall not constitute
a trust fund and may be commingled with other monies held by Lender.

                  (ii)     Notwithstanding the foregoing, Borrower shall not be
         obligated to make any Monthly Leasing Escrow Deposits or Monthly
         Replacement Escrow Amount deposits unless and until an NOI Trigger
         Event (as hereinafter defined) occurs (it being agreed and acknowledged
         that Borrower shall be obligated to make the Additional Monthly Leasing
         Escrow Deposits irrespective of whether an NOI Trigger Event exists).
         From and after the occurrence and during the continuance of an NOI
         Trigger Event, (A) Borrower shall deposit on each Payment Date all
         Excess Cash Flow (as defined in the Note) into the Replacement/Leasing
         Escrow Fund until the amount on deposit in the Replacement/Leasing
         Escrow Fund equals (1) the sum of (x) the Monthly Leasing Escrow
         Deposit and (y) the Monthly Replacement Escrow Amount, multiplied by
         (z) the number of months that the Loan has then been outstanding, less
         (2) any amounts previously expended by Borrower for tenant
         improvements, leasing commissions, capital improvements, replacements
         and/or repairs for which Borrower would have otherwise been entitled to
         disbursements from the Replacement/Leasing Escrow Fund pursuant to and
         in accordance with paragraph 6(f)(i) in the event that Borrower had
         been making Monthly Leasing Escrow Deposits and deposits of Monthly
         Replacement Escrow Amounts pursuant to and in accordance with paragraph
         6(f)(i) and for which Borrower submits to Lender such invoices or other
         evidence of such expenditures as Lender may reasonably require (the
         amount of such deposit is hereinafter referred to as the "LEASING
         ESCROW FUND CATCH-UP DEPOSIT"), (B) from and after the month
         immediately following the month in which the amount on deposit in the
         Replacement/Leasing Escrow Fund equals the Leasing Escrow Fund Catch-Up
         Deposit, Borrower shall deposit on each

                                      -20-

<PAGE>

         Payment Date the Monthly Leasing Escrow Deposit and the Monthly
         Replacement Escrow Amount (C) on the Payment Date occurring in January,
         2005, Borrower shall deposit an additional amount in the
         Replacement/Leasing Escrow Fund equal to the positive difference, if
         any, between (1) $8,800,000 and (2) the amount then on deposit in the
         Replacement/Leasing Escrow Fund, (D) on the Payment Date occurring in
         January, 2009, Borrower shall deposit an additional amount in the
         Replacement/Leasing Escrow Fund equal to the positive difference, if
         any, between (1) $9,100,000 and (2) the amount then on deposit in the
         Replacement/Leasing Escrow Fund and (E) on the Payment Date occurring
         in January, 2010, Borrower shall deposit an additional amount in the
         Replacement/Leasing Escrow Fund equal to the positive difference, if
         any, between (1) $6,800,000 and (2) the amount then on deposit in the
         Replacement/Leasing Escrow Fund.

                  (iii)    For purposes of this paragraph 6(f), (A) "NOI TRIGGER
         EVENT" shall mean any period commencing on the date in which it is
         determined that the Net Operating Income for the calendar quarter
         immediately preceding the date of such calculation is less than
         $32,000,000 and which shall be deemed to continue until such time as
         the Net Operating Income equals or exceeds $32,000,000 for two
         consecutive calendar quarters, (B) "NET OPERATING INCOME" shall mean as
         of any date, (1) the annualized Gross Income from Operations (as
         hereinafter defined) based on Leases In Place as of the most recently
         ended calendar quarter less (2) the actual Operating Expenses incurred
         during the preceding period of twelve consecutive calendar months
         ending on the last day of the most recently ended calendar quarter (as
         adjusted pursuant to the definition of "Operating Expenses" below), as
         reasonably determined by Lender and in accordance with current rating
         agency criteria, (C) "GROSS INCOME FROM OPERATIONS" shall mean all
         income, computed in accordance with GAAP (as hereinafter defined),
         except as otherwise provided herein, derived from the ownership and
         operation of the Trust Property from whatever source, including, but
         not limited to, rents, utility charges, escalations, forfeited security
         deposits, service fees or charges, license fees, parking fees, and
         other pass-throughs or reimbursements paid by tenants under Leases In
         Place with respect to the Trust Property of any nature (adjusted for
         projected increases in fixed expenses as provided in the definition of
         "Expenses" herein) but excluding sales, use and occupancy or other
         taxes on receipts required to be accounted for by Borrower to any
         government or governmental agency, refunds and uncollectible accounts,
         interest on credit accounts, any one-time or other non-periodic
         payments by tenants under their respective Leases other than pre-paid
         rent by tenants (except that such pre-paid rent shall riot be deemed
         income until the occurrence of the month in which such pre-paid rent
         was otherwise payable), proceeds of casualty insurance and condemnation
         awards (other than business interruption or other loss of income
         insurance) and any disbursements to Borrower from any escrow fund
         established pursuant to any Loan Document, (D) "LEASES IN PLACE" shall
         mean Leases of space at the Trust Property under which the tenant has
         accepted the demised premises, opened for business and is then
         obligated to pay rent; provided that Borrower shall not receive credit
         for rent payable under such Lease for the period commencing on the
         latter to occur of the date that is twelve (12) months prior to the
         expiration date of the Lease term or the date that the renewal or
         extension option in the Lease, if any, expires, if (1) the Lease has
         not been renewed or extended pursuant to and in accordance with the
         Lease, or (2) a replacement tenant has not executed a Lease for all

                                      -21-

<PAGE>

         or a portion of the space then subject to the related Lease in Place in
         accordance with the provisions of this Deed of Trust (but in the case
         of this clause (2), Borrower shall only receive credit for rent payable
         under such Lease to the extent of the space so re-let), and with
         respect to which no bankruptcy proceeding has been commenced against
         the tenant that has not been dismissed; provided that if a tenant that
         has a long-term unsecured debt rating of at least "BBB-" or its
         equivalent ("investment grade") and no worse than a "stable" outlook by
         any two of S&P, Moody's and/or Fitch, such tenant shall not be required
         to be open for business; provided, further, that if a Lease In Place is
         subject to any unescrowed rent concession or credit, such unescrowed
         rent concession or credit shall be deducted from the rent payable under
         such Lease In Place when determining the rent payable under such Leases
         In Place, provided that such rent concession or credit shall be
         amortized over the primary lease term (excluding any extension
         options), provided such primary lease term shall be reduced by assuming
         that any and all lease cancellation options contained in such Lease are
         exercised. Above market rents payable under Leases In Place will be
         adjusted, in Lender's reasonable determination, down to the applicable
         market rents when determining the rent payable under such Lease In
         Place if the tenant thereunder is not investment grade. (For purposes
         of this paragraph, Latham & Watkins LLP and Affiliates and White & Case
         LLP will be deemed to constitute investment grade tenants.), and (E)
         "OPERATING EXPENSES" shall mean the total of all expenditures by
         Borrower, computed in accordance with generally accepted accounting
         principles or the method used in connection with the financial
         statements of Borrower delivered to Lender in connection with the
         closing of the Loan ("GAAP"), except as otherwise provided herein, of
         whatever kind relating to the operation, maintenance and management of
         the Trust Property that are incurred on a regular monthly or other
         periodic basis, including without limitation, utilities, telecom costs,
         ordinary repairs and maintenance, insurance, license fees, property
         taxes and assessments, advertising and marketing expenses, legal (other
         than costs and expenses relating to the Loan) and accounting fees,
         management fees, payroll and related taxes, computer processing
         charges, operational equipment or other lease payments as approved by
         Lender for expenditures not included in the Approved Annual Budget (as
         defined in the Note) for the Trust Property, and other similar costs
         (with adjustments thereto with respect to changes in fixed costs based
         upon the most recently available information to Borrower), but
         excluding capital expenditures for the Trust Property, tenant
         improvement costs and leasing commissions for the Trust Property,
         depreciation, debt service, contributions to any reserves required
         under the Loan Documents and extraordinary, non-recurring expenses. To
         the extent that the definitions of Net Operating Income, Gross Income
         from Operations, Operating Expenses and Leases in Place deviate from
         GAAP, the definitions of such terms contained herein shall govern.

                  (g)      (i) In lieu of making the payments to either of the
US Bancorp Escrow Fund, the Outstanding Tenant Allowance Escrow Fund or the
Replacement/Leasing Escrow Fund, Borrower may deliver to Lender one or more
Letters of Credit (as hereinafter defined) in accordance with the provisions of
this Section 6(g). Additionally, Borrower may deliver to Lender one or more
Letters of Credit in accordance with the provisions of this Section 6(g) in lieu
of deposits previously made to any of the US Bancorp Escrow Fund, the
Outstanding Tenant Allowance Escrow Fund or the Replacement/Leasing Escrow Fund
and upon such delivery, provided that no Event of Default is then continuing,
obtain the release of such amounts

                                      -22-

<PAGE>

previously deposited. The aggregate amount of proceeds available to be drawn
under the Letters of Credit and cash on deposit in the US Bancorp Escrow Fund,
the Outstanding Tenant Allowance Escrow Fund or the Replacement/Leasing Escrow
Fund, as applicable, shall at all times be at least equal to the aggregate
amount which Borrower is then required to have on deposit in the US Bancorp
Escrow Fund, the Outstanding Tenant Allowance Escrow Fund and/or the
Replacement/Leasing Escrow Fund, as applicable, pursuant to this Deed of Trust.
Borrower shall give Lender no less than thirty (30) days notice of Borrower's
election to deliver a Letter of Credit and Borrower shall pay to Lender all of
Lender's reasonable out-of-pocket costs and expenses in connection therewith.
Borrower shall not be entitled to draw from any such Letter of Credit. Upon
thirty (30) days notice to Lender, Borrower may replace a Letter of Credit with
a cash deposit to any of the US Bancorp Escrow Fund, the Outstanding Tenant
Allowance Escrow Fund or the Replacement/Leasing Escrow Fund. Prior to the
return of a Letter of Credit, Borrower shall deposit an amount equal to the
amount that would have accumulated in any of the US Bancorp Escrow Fund, the
Outstanding Tenant Allowance Escrow Fund or the Replacement/Leasing Escrow Fund,
as applicable, and not been disbursed in accordance with this Deed of Trust if
such Letter of Credit had not been delivered. Each Letter of Credit delivered
under this Deed of Trust shall be additional security for the payment of the
Debt. Upon the occurrence of an Event of Default, Lender shall have the right,
at its option, to draw on any Letter of Credit and to apply all or any part
thereof to the payment of the items for which such Letter of Credit was
established or to apply each such Letter of Credit to payment of the Debt in
such order, proportion or priority as Lender may determine. On the Maturity
Date, any such Letter of Credit may be applied to reduce the Debt. In addition
to any other right Lender may have to draw upon a Letter of Credit pursuant to
the terms and conditions of this Deed of Trust, unless Borrower has deposited
cash in the applicable reserve fund sufficient to replace the Letter of Credit
as provided above, Lender shall have the additional rights to draw in full any
Letter of Credit: (a) with respect to any evergreen Letter of Credit, if Lender
has received a notice from the issuing bank that the Letter of Credit will not
be renewed and a substitute Letter of Credit is not provided at least ten (10)
Business Days prior to the date on which the outstanding Letter of Credit is
scheduled to expire; (b) with respect to any Letter of Credit with a stated
expiration date, if Lender has not received a notice from the issuing bank that
it has renewed the Letter of Credit at least ten (10) Business Days prior to the
date on which such Letter of Credit is scheduled to expire and a substitute
Letter of Credit is not provided at least ten (10) Business Days prior to the
date on which the outstanding Letter of Credit is scheduled to expire; (c) upon
receipt of notice from the issuing bank that the Letter of Credit will be
terminated (except if the termination of such Letter of Credit is permitted
pursuant to the terms and conditions of this Deed of Trust or a substitute
Letter of Credit is provided); or (d) if Lender has received notice that the
bank issuing the Letter of Credit shall cease to be an Eligible Institution (as
hereinafter defined) and Borrower has not provided a substitute Letter of Credit
or deposited cash to replace the Letter of Credit within five (5) days after
Lender has received such notice. In the event that Lender draws in full any
Letter of Credit as a result of any of the events described in clauses (a)-(d)
above, provided there is no Event of Default then continuing, (x) Lender shall
deposit all proceeds of such Letter of Credit in the applicable reserve fund
that was not being funded with monthly cash deposits as a result of such Letter
of Credit having been posted and (y) if the proceeds of such Letter of Credit
exceed the amount that would have otherwise been on deposit in such reserve fund
in the event that Borrower had not posted such Letter of Credit, any excess
amounts shall remain on deposit in such reserve fund and shall be

                                      -23-

<PAGE>

credited against Borrower's future deposit obligations into such reserve fund.
Notwithstanding anything to the contrary contained in the above, Lender is not
obligated to draw any Letter of Credit upon the happening of an event specified
in (a), (b), (c) or (d) above and shall not be liable for any losses sustained
by Borrower due to the insolvency of the bank issuing the Letter of Credit if
Lender has not drawn the Letter of Credit.

                  (ii)     For the purposes of this Section 6(g), (A) "LETTER OF
         CREDIT" shall mean an irrevocable, unconditional, transferable, clean
         sight draft letter of credit acceptable to Lender and the Rating
         Agencies (either an evergreen letter of credit or one which does not
         expire until at least thirty (30) days after the Maturity Date) for
         which Borrower shall have no reimbursement obligation and which
         reimbursement obligation is not secured by the Trust Property or any
         other property pledged to secure the Note in favor of Lender and
         entitling Lender to draw thereon in New York, New York, issued by a
         domestic Eligible Institution or the U.S. agency or branch of a foreign
         Eligible Institution. If at any time the bank issuing any such Letter
         of Credit shall cease to be an Eligible Institution, subject to
         Borrower's rights under clause (d) of paragraph 6(e)(i) above, Lender
         shall have the right to draw down the same in full and hold the
         proceeds of such draw in accordance with the applicable provisions
         hereof and (B) "ELIGIBLE INSTITUTION" shall mean a federal or state
         chartered depository institution or trust company insured by the
         Federal Deposit Insurance Corporation the short term unsecured debt
         obligations or commercial paper of which are rated at least A-1 by S&P,
         P-1 by Moody's, and F-1+ by Fitch, Inc. in the case of accounts in
         which funds are held for thirty (30) days or less or, in the case of
         Letters of Credit or accounts in which funds are held for more than
         thirty (30) days, the long term unsecured debt obligations of which are
         rated at least "AA" by Fitch and S&P and "Aa2" by Moody's.

                  (h)      Borrower hereby pledges to Lender and grants to
Lender a security interest in any and all monies now or hereafter deposited in
the Tax and Insurance Impound Fund, the Deferred Maintenance Escrow Fund, the US
Bancorp Escrow Fund, the Outstanding Tenant Allowance Escrow Fund and the
Replacement/Leasing Escrow Fund (collectively, the "FUNDS") as additional
security for the payment of the Debt. Upon the occurrence of an Event of Default
and prior to the acceptance of a cure thereof by Lender, Lender shall have no
obligation to disburse any amounts held in the Funds to the Borrower and may
apply any sums then present in such funds to the payment of the Debt in any
order in its sole discretion. All reasonable third party out-of-pocket costs and
expenses incurred by Lender in the disbursement of any of the Funds, if any,
shall be paid by Borrower promptly upon demand. The Funds shall be held in a
segregated account in Lender's name at a financial institution selected by
Lender in its sole discretion. At the direction of Borrower, Lender shall
deposit the amounts held in the Funds in Permitted Investments (as defined
herein) selected by Borrower. All investment earnings on the Funds shall be (i)
added to and become part of its respective Fund, (ii) taxed as income of the
Borrower, (iii) for the benefit of Borrower, subject to Lender's rights pursuant
to this Deed of Trust, and (iv) disbursed in accordance herewith. Lender shall
not be responsible for any losses resulting from the investment of the Funds or
for obtaining any specific level or percentage of earnings on such investment.

                  (i)      (i) Subject to the provisions of subparagraph (i)(ii)
below, for the purposes of this Deed of Trust, the term "PERMITTED INVESTMENTS"
shall mean any one or more

                                      -24-

<PAGE>

of the following obligations or securities acquired at a purchase price of not
greater than par, including those issued by Servicer (defined herein), the
trustee under any Securitization or any of their respective affiliates, payable
on demand or having a maturity date not later than the Business Day immediately
prior to the first Payment Date following the date of acquiring such investment
(and in no event having maturities of more than 365 days) and meeting one of the
appropriate standards set forth below: (i) obligations of, or obligations fully
guaranteed as to payment of principal and interest by, the United States or any
agency or instrumentality thereof provided such obligations are backed by the
full faith and credit of the United States of America including, without
limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed
obligations), the Farmers Home Administration (certificates of beneficial
ownership), the General Services Administration (participation certificates),
the U.S. Maritime Administration (guaranteed Title XI financing), the Small
Business Administration (guaranteed participation certificates and guaranteed
pool certificates), the U.S. Department of Housing and Urban Development (local
authority bonds) and the Washington Metropolitan Area Transit Authority
(guaranteed transit bonds); provided, however, that the investments described hi
this clause must (A) have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (B) if rated by S&P, must not have an "r"
highlighter affixed to their rating, (C) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that
index, and (D) such investments must not be subject to liquidation prior to
their maturity; (ii) Federal Housing Administration debentures; (iii)
obligations of the following United States government sponsored agencies:
Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit System
(consolidated system wide bonds and notes), the Federal Home Loan Banks
(consolidated debt obligations), the Federal National Mortgage Association (debt
obligations), the Financing Corp. (debt obligations), and the Resolution Funding
Corp. (debt obligations); provided, however, that the investments described in
this clause must (A) have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (B) if rated by S&P, must not have an "r"
highlighter affixed to their rating, (C) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that
index, and (D) such investments must not be subject to liquidation prior to
their maturity; (iv) federal funds, unsecured certificates of deposit, time
deposits, bankers' acceptances and repurchase agreements with maturities of not
more than 365 days of any bank, the short term obligations of which at all times
are rated in the highest short term rating category by each Rating Agency
(defined herein) (or, if not rated by all Rating Agencies, rated by at least one
Rating Agency in the highest short term rating category and otherwise acceptable
to each other Rating Agency, as confirmed in writing that such investment would
not, in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned to the Securities issued
in connection with a Securitization or any class thereof); provided, however,
that the investments described in this clause must (A) have a predetermined
fixed dollar of principal due at maturity that cannot vary or change, (B) if
rated by S&P, must not have an "r" highlighter affixed to their rating, (C) if
such investments have a variable rate of interest, such interest rate must be
tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be subject to
liquidation prior to their maturity; (v) fully Federal Deposit Insurance
Corporation-insured demand and time deposits in, or certificates of deposit of,
or bankers' acceptances issued by, any bank or trust company, savings and loan
association or savings bank, the short term obligations

                                      -25-

<PAGE>

of which at all times are rated in the highest short term rating category by
each Rating Agency (or, if not rated by all Rating Agencies, rated by at least
one Rating Agency in the highest short term rating category and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities (as defined in the Cooperation Letter) or any class thereof);
provided, however, that the investments described in this clause must (A) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (B) if rated by S&P, must not have an "r" highlighter affixed to their
rating, (C) if such investments have a variable rate of interest, such interest
rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not
be subject to liquidation prior to their maturity; (vi) debt obligations with
maturities of not more than three hundred sixty-five (365) days and at all times
rated by each Rating Agency (or, if not rated by all Rating Agencies, rated by
at least one Rating Agency and otherwise acceptable to each other Rating Agency,
as confirmed in writing that such investment would not, in and of itself, result
in a downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities or any class thereof) in its highest
long-term unsecured rating category; provided, however, that the investments
described in this clause must (A) have a predetermined fixed dollar amount of
principal due at maturity that cannot vary or change, (B) if rated by S&P, must
not have an "r" highlighter affixed to their rating, (C) if such investments
have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately
with that index, and (D) such investments must not be subject to liquidation
prior to their maturity; (vii) commercial paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) with maturities of not more than three hundred sixty-five
(365) days and that at all times is rated by each Rating Agency (or, if not
rated by all Rating Agencies, rated by at least one Rating Agency and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities or any class thereof) in its highest short-term unsecured debt
rating; provided, however, that the investments described in this clause must
(A) have a predetermined fixed dollar of principal due at maturity that cannot
vary or change, (B) if rated by S&P, must not have an "r" highlighter affixed to
their rating, (C) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread
(if any) and must move proportionately with that index, and (D) such investments
must not be subject to liquidation prior to their maturity; and (viii) other
security, obligation or investment which has been approved as a Permitted
Investment in writing by (a) Lender and (b) each Rating Agency, as evidenced by
a written confirmation that the designation of such security, obligation or
investment as a Permitted Investment will not, in and of itself, result in a
downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities, or any class thereof, by such Rating
Agency; provided, however, that no obligation or security shall be a Permitted
Investment if (A) such obligation or security evidences a right to receive only
interest payments or (B) the right to receive principal and interest payments on
such obligation or security are derived from an underlying investment that
provides a yield to maturity in excess of one hundred twenty percent (120%) of
the yield to maturity at par of such underlying investment. Notwithstanding
anything to the contrary contained herein, the Permitted

                                      -26-

<PAGE>

Investments (i) through (ix) above must have a Moody's rating of (a) "A2 or P-1"
if such investment has a maximum maturity of one (1) month, (b) "A1 and P-1" if
such investment has a maximum maturity of three (3) months, (c) "Aa3 and P-1" if
such investment has a maximum maturity of six (6) months and (d) "AAA and P-1"
if such investment has a maximum maturity of more than six (6) months.

                  (ii)     At any time when Borrower is not permitted under the
Loan Documents to select Permitted Investments, then for the purposes of this
Deed of Trust, the term "PERMITTED INVESTMENTS" shall mean any one or more of
the following obligations or securities acquired at a purchase price of not
greater than par, including those issued by Servicer (defined herein), the
trustee under any Securitization or any of their respective Affiliates, payable
on demand or having a maturity date not later than the Business Day immediately
prior to the first Payment Date following the date of acquiring such investment
(and in no event having maturities of more than 365 days) and meeting one of the
appropriate standards set forth below: (i) obligations of, or obligations fully
guaranteed as to payment of principal and interest by, the United States or any
Person controlled or supervised by and acting as an instrumentality of the
United States pursuant to authority granted by the Congress of the United States
provided such obligations are backed by the full faith and credit of the United
States of America and are one of the following: obligations of the U.S. Treasury
(all direct or fully guaranteed obligations), the General Services
Administration (participation certificates), the Small Business Administration
(guaranteed participation certificates and guaranteed pool certificates) or the
U.S. Department of Housing and Urban Development (local authority bonds);
provided, however, that the investments described in this clause must (A) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (B) if rated by S&P, must not have an "r" highlighter affixed to their
rating, (C) if such investments have a variable rate of interest, such interest
rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not
be subject to liquidation prior to their maturity; (ii) Federal Housing
Administration debentures; and (iii) obligations of the following United States
government sponsored agencies: Federal Home Loan Mortgage Corp. (debt
obligations), the Farm Credit System (consolidated system wide bonds and notes),
the Federal Home Loan Banks (consolidated debt obligations) and the Federal
National Mortgage Association (debt obligations); provided, however, that the
investments described in this clause must (A) have a predetermined fixed dollar
of principal due at maturity that cannot vary or change, (B) if rated by S&P,
must not have an "r" highlighter affixed to their rating, (C) if such
investments have a variable rate of interest, such interest rate must be tied to
a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be subject to
liquidation prior to their maturity; provided, however, that no obligation or
security shall be a Permitted Investment if (A) such obligation or security
evidences a right to receive only interest payments or (B) the right to receive
principal and interest payments on such obligation or security are derived from
an underlying investment that provides a yield to maturity in excess of one
hundred twenty percent (120%) of the yield to maturity at par of such underlying
investment. Notwithstanding anything to the contrary contained herein, the
Permitted Investments (i) through (ix) above must have a Moody's rating of (a)
"A2 or P-1" if such investment has a maximum maturity of one (1) month, (b) "A1
and P-1" if such investment has a maximum maturity of three (3) months, (c) "Aa3
and P-1" if such investment has a maximum maturity of six (6) months and (d)
"AAA and P-1" if such investment has a maximum maturity of more than six (6)
months.

                                      -27-

<PAGE>

                  7.       ALTERATIONS. Borrower shall obtain Lender's prior
written consent, which consent shall not be unreasonably withheld or delayed, to
any alterations to the Improvements, the cost of which is reasonably anticipated
to exceed $1,000,000 (the "THRESHOLD AMOUNT") or that will have a material
adverse effect on Borrower's financial condition, the use, operation or value of
the Trust Property or the net operating income with respect to the Trust
Property, other than (a) tenant improvement work performed pursuant to the terms
of any Lease executed on or before the date hereof, (b) tenant improvement work
performed pursuant to the terms and provisions of a Lease executed after the
date hereof and not adversely affecting any'structural component of any
Improvements, any utility or HVAC system contained in any Improvements or the
exterior of any building constituting a part of any Improvements (it being
understood that the foregoing provision shall not require Lender's consent to
Tenants' exterior signage pursuant to any Lease approved by Lender in accordance
with the terms and provisions of this Deed of Trust) or (c) alterations
performed in connection with the restoration of the Trust Property after the
occurrence of a Casualty or Condemnation in accordance with the terms and
provisions of this Deed of Trust. If Lender fails to respond to a request for
consent under this paragraph 7 within ten (10) Business Days of receipt thereof,
such consent shall be deemed granted, provided that such request shall have been
accompanied by all information requested by Lender or reasonably necessary for
Lender to evaluate such request and shall have clearly stated, in 14 point type
or greater, that if Lender fails to respond to such request within ten (10)
Business Days, Lender's consent shall be deemed to have been granted. If Lender
refuses to grant such consent, Lender shall specify in writing the reasons for
such refusal. Any approval by Lender of the plans, specifications or working
drawings for alterations of the Trust Property shall not create responsibility
or liability on behalf of Lender for their completeness, design, sufficiency or
their compliance with applicable laws. Lender may condition any such approval
upon receipt of a certificate of compliance with applicable laws from an
independent architect,' engineer, or other person reasonably acceptable to
Lender. If the total unpaid amounts due and payable with respect to alterations
to the Improvements (other than such amounts to be paid or reimbursed by tenants
under the Leases or paid from escrow accounts established hereunder) shall at
any time exceed the Threshold Amount, Borrower shall promptly deliver to Lender
as security for the payment of such amounts and as additional security for
Borrower's obligations under the Loan Documents any of the following: (1) cash,
(2) U.S. Treasury securities, (3) other securities having a rating acceptable to
Lender and that the applicable Rating Agencies (hereinafter defined) have
confirmed in writing will not, in and of itself, result in a downgrade,
withdrawal or qualification of the initial, or, if higher, then current ratings
assigned in connection with any securitization of the Loan (a "SECURITIZATION"),
or if a Securitization has not occurred, any ratings to be assigned in
connection with a Securitization, or (4) a Letter of Credit. Such security shall
be in an amount equal to the excess of the total unpaid amounts with respect to
alterations to the Improvements (other than such amounts to be paid or
reimbursed by tenants under the Leases or from escrow accounts established
hereunder) over the Threshold Amount. Upon completion of the alterations to the
satisfaction of Lender in its reasonable discretion Lender shall promptly return
to Borrower such additional security. For purposes of this Deed of Trust,
"RATING AGENCIES" shall mean, prior to the final Securitization of the Loan,
each of S&P, Moody's and Fitch, Inc., or any other nationally recognized
statistical rating agency which has been designated by Lender and, after the
final Securitization of the Loan, shall mean any of the foregoing that have
rated any Securities.

                  8.       LEASES AND RENTS.

                                      -28-

<PAGE>

                  (a)      Borrower does hereby absolutely and unconditionally
assigns to Lender, all Borrower's right, title and interest in all current and
future Leases and Rents, it being intended by Borrower that this assignment
constitutes a present, absolute assignment and not an assignment for additional
security only. Such assignment to Lender shall not be construed to bind Lender
to the performance of any of the covenants, conditions or provisions contained
in any such Lease or otherwise impose any obligation upon Lender. Borrower
agrees to execute and deliver to Lender such additional instruments, in form and
substance satisfactory to Lender, as may hereafter be requested by Lender to
further evidence and confirm such assignment. Nevertheless, subject to the terms
of this paragraph, Lender grants to Borrower a revocable license to operate and
manage the Trust Property and to collect the Rents. Borrower shall hold the
Rents, or a portion thereof, sufficient to discharge all current sums due on the
Debt, in trust for the benefit of Lender for use in the payment of such sums.
Upon the occurrence of an Event of Default and prior to the acceptance of a cure
thereof by Lender, without the need for notice or demand, the license granted to
Borrower herein shall automatically be revoked, and Lender shall immediately be
entitled to possession of all Rents, whether or not Lender enters upon or takes
control of the Trust Property. Upon the acceptance by Lender of a cure of any
Event of Default, Lender shall reinstate the license granted to Borrower herein.
Lender is hereby granted and assigned by Borrower the right, at its option, upon
revocation of the license granted herein, to enter upon the Trust Property in
person, by agent or by court-appointed receiver to collect the Rents. Any Rents
collected after the revocation of the license may be applied toward payment of
the Debt in such priority and proportions as Lender in its sole discretion shall
deem proper.

                  (b)      All Leases shall be subordinate to this Deed of Trust
and the tenant thereunder shall agree to attorn to Lender either pursuant to the
Lease or a subordination, nondisturbance and attomment agreement executed by
such tenant and Lender. None of the Leases shall contain any option to purchase,
any right of first refusal to purchase or any right to terminate the lease term
(except for termination rights (i) set forth in Leases executed prior to, or on,
the date hereof or (ii) arising from a taking or the destruction of all or
substantially all of the Trust Property or all or substantially all of a
tenant's demised premises). Leases executed after the date hereof shall not
contain any provisions which adversely affect the Trust Property or which might
adversely affect the rights of any holder of the Loan without the prior written
consent of Lender. Each tenant shall conduct business only in that portion of
the Trust Property covered by its lease. Upon request, Borrower shall furnish
Lender with executed copies of all Leases.

                  (c)      Borrower shall not, without the prior consent of
Lender, which consent shall not be unreasonably withheld or conditioned (i)
enter into any Lease of all or any part of the Trust Property in excess of
25,000 rentable square feet (a "MAJOR LEASE"), (ii) cancel, terminate (other
than as a result of a tenant default thereunder), abridge or otherwise modify
the terms of any Major Lease unless such action is required by the terms
thereof, or accept a surrender thereof, (iii) consent to any assignment of or
subletting under any Major Lease not in accordance with its terms, (iv) cancel,
terminate, abridge or otherwise modify any guaranty of any Major Lease or the
terms thereof, (v) accept prepayments of installments of Rents for a period of
more than one (1) month in advance (other than estimated payments of
reimbursable expenses paid by tenants pursuant to their Leases) or (vi) further
assign the whole or any part of the Leases or the Rents. If Lender fails to
respond to a request for consent under this paragraph 8(c) within ten (10)
Business Days of receipt thereof, such consent shall be deemed granted, provided
that such

                                      -29-

<PAGE>

request shall have been accompanied by all information requested by Lender or
reasonably necessary for Lender to evaluate such request and shall have clearly
stated, in 14 point type or greater, that if Lender fails to respond to such
request within ten (10) Business Days, Lender's consent shall be deemed to have
been granted. In the event that Lender refuses to grant any such consent, Lender
shall specify in writing the reasons for such refusal. In addition, Borrower
shall not (A) lease all or any part of the Trust Property, (B) cancel, terminate
(other than as a result of a tenant default thereunder), abridge or otherwise
modify the terms of any Lease, or accept a surrender thereof, (C) consent to any
assignment of or subletting under any Lease not in accordance with its terms or
(D) cancel, terminate, abridge or otherwise modify any guaranty of any Lease or
the terms thereof, unless such actions are exercised for a commercially
reasonable purpose in arms-length transactions for market rate terms.

                  (d)      Borrower (i) shall observe and perform all the
material obligations imposed upon the lessor, grantor or licensor, as
applicable, under the Leases and shall not do or permit to be done anything to
impair the value of the Leases as security for the Debt; (ii) shall promptly
send copies to Lender of all notices of default which Borrower shall send or
receive thereunder; (iii) shall enforce all the material terms, covenants and
conditions contained in the Leases upon the part of the lessee, grantee or
licensee, as applicable, thereunder to be observed or performed, short of
termination thereof (unless by reason of default thereunder); (iv) shall not
collect any of the Rents (other than estimated payments of reimbursable expenses
paid by tenants pursuant to their Leases) more than one (1) month in advance;
(v) shall not execute any other assignment of the lessor's interest in the
Leases or the Rents; (vi) shall, upon request of Lender, request and use
commercially reasonable efforts to obtain and deliver to Lender tenant estoppel
certificates from each commercial tenant at the Trust Property in form and
substance reasonably satisfactory to Lender, provided that Borrower shall not be
required to deliver such certificates more frequently than two (2) times in any
calendar year; and (vii) shall execute and deliver at the request of Lender all
such further assurances, confirmations and assignments in connection with the
Trust Property as Lender shall from time to time reasonably require.

                  (e)      All security deposits of tenants, whether held in
cash or any other form, shall not be commingled with any other funds of Borrower
and, if cash, shall be deposited by Borrower at such commercial or savings bank
or banks, or otherwise held in compliance with applicable law, as may be
reasonably satisfactory to Lender. Any bond or other instrument which Borrower
is permitted to hold in lieu of cash security deposits under any applicable
legal requirements shall be maintained in full force and effect in the full
amount of such deposits unless replaced by cash deposits as hereinabove
described, shall (if issued after the date hereof) be fully assignable to Lender
and shall, in all respects, comply with any applicable legal requirements and
otherwise be reasonably satisfactory to Lender. Borrower shall, upon request,
provide Lender with evidence reasonably satisfactory to Lender of Borrower's
compliance with the foregoing. Following the occurrence and during the
continuance of any Event of Default, Borrower shall, upon Lender's request, if
permitted by any applicable legal requirements, turn over to Lender the security
deposits (and any interest theretofore earned thereon) with respect to all or
any portion of the Trust Property, to be held by Lender subject to the terms of
the Leases.

                  9.       MAINTENANCE AND USE OF TRUST PROPERTY. Borrower shall
cause the Trust Property to be maintained in a good and safe condition and
repair. The Improvements and the Equipment shall not be removed, demolished or
materially altered without the consent of

                                      -30-

<PAGE>

Lender except for (a) tenant improvements permitted to be made without the
consent of Lender pursuant to the express terms of any Lease approved or deemed
approved by Lender pursuant to paragraph 8 hereof, (b) normal replacement of the
Equipment and (c) work required to be made by reason of the occurrence of an
emergency (i.e., an unexpected event which threatens imminent harm to persons or
the Trust Property) and with respect to which it would be impracticable, under
the circumstances, to obtain Lender's prior consent thereto, provided that
Borrower shall notify Lender as promptly as practicable with respect to any such
emergency work performed by Borrower. Borrower shall promptly comply in all
material respects with all laws, orders and ordinances affecting Borrower and
the Trust Property (including, without limitation, Prescribed Laws), or the use
thereof; provided, however, that after prior written notice to Lender, Borrower,
at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, such law, order
and/or ordinance, provided that (i) no Event of Default has occurred and is
continuing; (ii) such proceeding shall not be prohibited by the provisions of
any other instrument to which Borrower is subject and shall not constitute a
default thereunder and such proceeding shall be conducted in accordance with all
applicable statutes, laws and ordinances; (iii) neither the Trust Property nor
any part thereof or interest therein will be in danger of being sold, forfeited,
terminated, cancelled or lost; (iv) Borrower shall promptly upon final
determination thereof comply with such law, order and/or ordinance and pay all
costs, interest and penalties which may be payable in connection therewith; and
(v) such proceeding shall suspend the requirement of Borrower to comply with
such law, order and/or ordinance. Borrower shall not initiate, join in,
acquiesce in, or consent to any change in any private restrictive covenant,
zoning law or other public or private restriction, limiting or defining the uses
which may be made of the Trust Property or any part thereof. If under applicable
zoning provisions the use of all or any portion of the Trust Property is or
shall become a nonconforming use, Borrower will not cause or permit such
nonconforming use to be discontinued or abandoned without the express written
consent of Lender. Borrower shall not (i) change the use of the Trust Property,
(ii) permit or suffer to occur any waste on or to the Trust Property or to any
portion thereof or (iii) take any steps whatsoever to convert the Trust
Property, or any portion thereof, to a condominium or cooperative form of
management, other than in accordance with paragraph 10(i) hereof. Borrower will
not install or permit to be installed on the Premises any underground storage
tank.

                  10.      TRANSFER OR ENCUMBRANCE OF THE TRUST PROPERTY.

                  (a)      Borrower acknowledges that Lender has examined and
relied on the creditworthiness and experience of Borrower in owning and
operating properties such as the Trust Property in agreeing to make the Loan,
and that Lender will continue to rely on Borrower's ownership of the Trust
Property as a means of maintaining the value of the Trust Property as security
for repayment of the Debt. Borrower acknowledges that Lender has a valid
interest in maintaining the value of the Trust Property so as to ensure that,
should Borrower default in the repayment of the Debt, Lender can recover the
Debt by a sale of the Trust Property. For purposes of this paragraph 10, an
"AFFILIATED MANAGER" shall mean any managing agent of the Trust Property (other
than Maguire Services, Inc.) in which Borrower or the OP or any other guarantor
of the Debt (the OP or any other such guarantor, "GUARANTOR") has, directly or
indirectly, any legal, beneficial or economic interest; a "RESTRICTED PARTY"
shall mean Borrower, the Guarantor, or any Affiliated Manager or any
shareholder, partner, member or non-member manager, or any direct or indirect
legal or beneficial owner, of Borrower, the Guarantor, or any

                                      -31-

<PAGE>

Affiliated Manager (other than Maguire Properties, Inc. (the "REIT"), any
Permitted Institutional Transferee (as hereinafter defined) or any Person owning
a direct or indirect interest in the REIT, the OP or any Permitted Institutional
Transferee); and a "SALE OR PLEDGE" shall mean a voluntary or involuntary sale,
conveyance, transfer or pledge of a legal or beneficial interest.

                  (b)      Except as expressly permitted pursuant to paragraph
10(h) hereof, Borrower shall not sell, convey, mortgage, grant, bargain,
encumber, pledge, assign, grant options with respect to, or otherwise transfer
or dispose of (directly or indirectly, voluntarily or involuntarily, by
operation of law or otherwise, and whether or not for consideration or of
record) the Trust Property or any part thereof or any legal or beneficial
interest therein or permit a Sale or Pledge of an interest in any Restricted
Party (collectively a "TRANSFER"), other than pursuant to Leases of space in the
Improvements to tenants in accordance with the provisions of paragraph 8,
without the prior written consent of Lender.

                  (c)      A Transfer shall include, but not be limited to, (i)
an installment sales agreement wherein Borrower agrees to sell the Trust
Property or any part thereof for a price to be paid in installments; (ii) an
agreement by Borrower leasing all or a substantial part of the Trust Property
for other than actual occupancy by a space tenant thereunder or a sale,
assignment or other transfer of, or the grant of a security interest in,
Borrower's right, title and interest in and to any Leases or any Rents; (iii) if
a Restricted Party is a corporation, any merger, consolidation or Sale or
Pledge of such corporation's stock or the creation or issuance of new stock such
that more than ten percent (10%) of such corporation's stock shall be vested in
a party or parties who are not stockholders as of the date hereof; (iv) if a
Restricted Party is a limited or general partnership or joint venture, any
merger or consolidation of such Restricted Party or the change, removal,
resignation or addition of a general partner thereof or the Sale or Pledge of
the partnership interest of any general partner of such Restricted Party or any
profits or proceeds relating to such partnership interest, or the Sale or Pledge
of limited partnership interests of such Restricted Party or any profits or
proceeds relating to such limited partnership interests or the creation or
issuance of new limited partnership interests of such Restricted Party; (v) if a
Restricted Party is a limited liability company, any merger or consolidation of
such Restricted Party or the change, removal, resignation or addition of a
managing member or non-member manager (or if no managing member, any member) of
such Restricted Party or the Sale or Pledge of the membership interest of a
managing member (or if no managing member, any member) of such Restricted Party
or any profits or proceeds relating to such membership interest, or the Sale or
Pledge of non-managing membership interests of such Restricted Party or the
creation or issuance of new non-managing membership interests of such Restricted
Party such that more than ten percent (10%) of such limited liability company's
non-managing membership interest shall be vested in a party or parties who are
not members as of the date hereof; (vi) if a Restricted Party is a trust or
nominee trust, any merger, consolidation or the Sale or Pledge of the legal or
beneficial interest in a Restricted Party or the creation or issuance of new
legal or beneficial interests; or (vii) the removal or the resignation of the
managing agent (including, without limitation, an Affiliated Manager) without
Lender's consent other than in accordance with paragraph 59.

                  (d)      Lender shall not be required to demonstrate any
actual impairment of its security or any increased risk of default hereunder in
order to declare the Debt immediately due

                                      -32-

<PAGE>

and payable upon Borrower's sale, conveyance, alienation, mortgage, encumbrance,
pledge or transfer of the Trust Property in violation of this paragraph 10
without Lender's consent. This provision shall apply to every sale, conveyance,
alienation, mortgage, encumbrance, pledge or transfer of the Trust Property
regardless of whether voluntary or not, or whether or not Lender has consented
to any previous sale, conveyance, alienation, mortgage, encumbrance, pledge or
transfer of the Trust Property.

                  (e)      Lender's consent to one sale, conveyance, alienation,
mortgage, encumbrance, pledge or transfer of the Trust Property shall not be
deemed to be a waiver of Lender's right to require such consent to any future
occurrence of same. Any sale, conveyance, alienation, mortgage, encumbrance,
pledge or transfer of the Trust Property made in contravention of this paragraph
shall be null and void and of no force and effect.

                  (f)      Borrower agrees to bear and shall pay or reimburse
Lender on demand for all reasonable expenses (including, without limitation,
reasonable attorneys' fees and disbursements, title search costs and title
insurance endorsement premiums) incurred by Lender in connection with the
review, approval and documentation of any such sale, conveyance, alienation,
mortgage, encumbrance, pledge or transfer.

                  (g)      Intentionally Omitted;

                  (h)      Notwithstanding anything to the contrary contained in
this paragraph 10 (including, without limitation, paragraph 10(b) and paragraph
10(c)), the following Transfers shall not require the prior written consent of
Lender:

                  (i)      Transfers of direct or indirect interests in any
         Restricted Party provided that the following conditions are satisfied:

                           A.       after taking into account any prior
                                    Transfers pursuant to this subparagraph,
                                    whether to the proposed transferee or
                                    otherwise, no such Transfer (or series of
                                    Transfers) shall result in (1) the proposed
                                    transferee, together with all members of
                                    his/her immediate family or any Affiliates
                                    thereof, owning in the aggregate (directly,
                                    indirectly or beneficially) more than
                                    forty-nine percent (49%) of the interests in
                                    Borrower (or any entity directly or
                                    indirectly holding an interest in Borrower
                                    that is a Restricted Party), or (2) a
                                    Transfer in the aggregate of more than
                                    forty-nine percent (49%) of the interests in
                                    Borrower as of the date hereof, except in
                                    either case for Transfers to a direct or
                                    indirect interest holder of Borrower as of
                                    the date hereof, or any Affiliate thereof,
                                    provided that if reasonably requested by
                                    Lender or if requested by any Rating Agency,
                                    Borrower shall deliver a non-consolidation
                                    opinion acceptable to Lender and the Rating
                                    Agencies with respect to such transferee
                                    which may be relied upon by Lender, the
                                    Rating Agencies and their respective counsel
                                    and successors and assigns;

                                      -33-
<PAGE>

                           B.       after giving effect to such Transfer, the
                                    REIT shall continue to own not less than a
                                    fifty-one percent (51%) direct general
                                    and/or limited partnership interest in the
                                    OP and the REIT shall continue to Control
                                    (hereinafter defined) Borrower and, subject
                                    to the rights of Manager under the
                                    Management Agreement (or any replacement
                                    manager under a replacement management
                                    agreement with respect to the Trust
                                    Property, each as approved by Lender in
                                    accordance with paragraph 59 of this Deed of
                                    Trust), the day to day operations of the
                                    Trust Property;

                           C.       Borrower shall give Lender notice of such
                                    Transfer together with copies of all
                                    instruments effecting such transfer not less
                                    than ten (10) days prior to the date of such
                                    Transfer;

                           D.       no Event of Default or event which with the
                                    giving of notice or the passage of time
                                    would constitute an Event of Default shall
                                    have occurred and remain uncured;

                           E.       the single purpose nature and bankruptcy
                                    remoteness of Borrower and its shareholders,
                                    partners or members after such transfer,
                                    shall satisfy Lender's then current
                                    applicable underwriting criteria and
                                    requirements; and

                           F.       Lender shall have received payment of, or
                                    reimbursement for, all costs and expenses
                                    incurred by Lender in connection with such
                                    Transfer (including, but not limited to,
                                    reasonable attorneys' fees and costs and
                                    expenses of the Rating Agencies).

                           Notwithstanding the foregoing, in the event that such
         Transfer is by a limited partner of the OP of such limited partner's
         limited partnership interest in the OP, then Borrower shall not be
         required to satisfy subparagraphs (i)(C) or (i)(F) above so long
         as Borrower has satisfied subparagraphs (i)(A), (i)(B), (i)(D) and
         (i)(E) above.

                  (ii)     Transfers of direct or indirect interests in any
         Restricted Party to a Permitted Institutional Transferee (hereinafter
         defined) provided that the following conditions are satisfied:

                           A.       no Event of Default or event which with the
                                    giving of notice or the passage of time
                                    would constitute an Event of Default shall
                                    have occurred and remain uncured;

                           B.       After such Transfer, fifty-one percent (51
                                    %) or greater of the direct or indirect
                                    interests of Borrower shall be owned by a
                                    Permitted Institutional Transferee;

                           C.       Borrower shall deliver to Lender a
                                    non-consolidation opinion acceptable to
                                    Lender and the Rating Agencies which may be
                                    relied

                                      -34-

<PAGE>

                                    upon by Lender, the Rating Agencies and
                                    their respective counsel and successor and
                                    assigns;

                           D.       Lender shall have confirmations in writing
                                    from the Rating Agencies to the effect that
                                    such Transfer will not result in a
                                    requalification, downgrade or withdrawal of
                                    any current securities ratings assigned in a
                                    Securitization;

                           E.       Borrower shall give Lender notice of such
                                    transfer together with copies of all
                                    instruments effecting such transfer not less
                                    than ten (10) days prior to the date of such
                                    Transfer;

                           F.       the single purpose nature and bankruptcy
                                    remoteness of Borrower and its shareholders,
                                    partners or members after such Transfer,
                                    shall satisfy Lender's then current
                                    applicable underwriting criteria and
                                    requirements; and

                           G.       Lender shall have received payment of, or
                                    reimbursement for, all costs and expenses
                                    incurred by Lender in connection with such
                                    Transfer (including, but not limited to,
                                    reasonable attorneys' fees and costs and
                                    expenses of the Rating Agencies).

                  For the purposes of this paragraph the term "PERMITTED
INSTITUTIONAL TRANSFEREE" means (a) one or more of the following: (i) a real
estate investment trust, bank, saving and loan association, investment bank,
insurance company, trust company, commercial credit corporation, pension plan,
pension fund or pension advisory firm, mutual fund, government entity or plan,
(ii) investment company, money management firm or "qualified institutional
buyer" within the meaning of Rule 144A under the Securities Act of 1933, as
amended, (iii) an institution substantially similar to any of the foregoing or
(iv) any entity Controlled (hereinafter defined) by any of the entities
described in clauses (i), (ii) or (iii) above which in each case (A) has total
assets (in name or under management) in excess of $600,000,000 and (except with
respect to a pension advisory firm or similar fiduciary) capital/statutory
surplus or shareholder's equity of $250,000,000 and (B) is regularly engaged in
the business of making or owning commercial real estate loans or operating
commercial mortgage properties or (b) any entity formed for the purpose of
owning or investing in commercial property and issuing syndication interests
that is approved by Lender, such approval not to be unreasonably withheld or
delayed. For purposes of this Section 10 "CONTROL" or "CONTROLLED" means the
ownership, directly or indirectly, in the aggregate of more than fifty percent
(50%) of the beneficial ownership interest of an entity and the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of an entity, whether through the ability to exercise
voting power, by contract or otherwise.

                  (iii)    (A) the Transfer or issuance of any securities,
         options, warrants or other interests in the REIT or any entity owning
         an interest in the REIT, (B) the merger or consolidation of the REIT or
         (C) the merger or consolidation of the OP provided that in the case of
         each of (B) and (C) above, the surviving entity shall be the REIT
         and/or the OP, as applicable, and after giving effect to such merger or
         consolidation, the REIT shall

                                      -35-

<PAGE>

         continue to own not less than a fifty-one percent (51%) direct general
         and/or limited partnership interest in the OP and the REIT shall
         continue to Control the Borrower and, subject to the rights of Manager
         under the Management Agreement (or any replacement manager under a
         replacement management agreement with respect to the Trust Property,
         each as approved by Lender in accordance with paragraph 59 of this Deed
         of Trust), the day to day operations of the Trust Property.

                  (iv)     pledges by the REIT, the OP or any entity holding any
         direct or indirect interests in the REIT or the OP of their indirect
         ownership interests in Borrower to any Permitted Institutional
         Transferee providing a corporate line of credit or other financing to
         the REIT, the OP or any entity holding any direct or indirect interests
         in the REIT or the OP, provided that the indirect interests in Borrower
         that are pledged as collateral comprise no more than thirty-three
         percent (33%) of the total value of the collateral for such line of
         credit or other financing and provided that the following conditions
         are met:

                           (A)      no Event of Default or event which with the
                  giving of notice or the passage of time would constitute an
                  Event of Default shall have occurred and remain uncured; and

                           (B)      Lender shall have received payment of, or
                  reimbursement for, all costs and expenses incurred by Lender
                  in connection with such pledges (including, but not limited
                  to, reasonable attorneys' fees and costs and expenses of the
                  Rating Agencies).

                  (v)      transfers by the REIT, the OP and/or their respective
         Affiliates of up to seventy-five percent (75%) of the direct or
         indirect ownership interests in the Borrower and/or other indirect
         ownership interests in the Trust Property to a Permitted Institutional
         Transferee provided that the following conditions are met:

                           (A)      no Event of Default or event which with the
                  giving of notice or the passage of time would constitute an
                  Event of Default shall have occurred and remain uncured;

                           (B)      Lender shall have confirmations in writing
                  from the Rating Agencies to the effect that such transfers
                  will not result in a requalification, downgrade or withdrawal
                  of any current securities rating assigned in a Securitization;

                           (C)      Borrower shall deliver to Lender a
                  non-consolidation opinion acceptable to Lender and the Rating
                  Agencies which may be relied upon by Lender, the Rating
                  Agencies and their respective counsel and successor and
                  assigns;

                           (D)      the REIT and/or its Affiliates shall
                  continue to act as property manager and leasing agent and
                  manage the day to day operations of the Trust Property; and

                                      -36-

<PAGE>

                           (E)      Lender shall have received payment of, or
                  reimbursement for, all costs and expenses incurred by Lender
                  in connection with such transfer (including, but not limited
                  to, reasonable attorneys' fees and costs and expenses of the
                  Rating Agencies).

                  (vi)     the restructuring of the ownership interests in the
         Trust Property held by the REIT, the OP or any entity holding any
         direct or indirect interests in the REIT or the OP, provided that the
         following conditions are met:

                           (A)      no Event of Default or event which with the
                  giving of notice or the passage of time would constitute an
                  Event of Default shall have occurred and remain uncured;

                           (B)      such restructuring does not reduce the
                  REIT's or the OP's aggregate ownership interests in the Trust
                  Property;

                           (C)      in the event that such restructuring shall
                  result in any Person, together with any Affiliates thereof,
                  that prior to such restructuring, owned in the aggregate
                  (directly, indirectly or beneficially) less than forty-nine
                  percent (49%) of the interests in Borrower (or any entity
                  directly or indirectly holding an interest in Borrower),
                  owning in the aggregate (directly, indirectly or beneficially)
                  more than forty-nine percent (49%) of the interests in
                  Borrower (or any entity directly or indirectly holding an
                  interest in Borrower), then Borrower shall deliver a non-
                  consolidation opinion acceptable to Lender and the Rating
                  Agencies with respect to such entity which may be relied upon
                  by Lender, the Rating Agencies and their respective counsel
                  and successors and assigns;

                           (D)      In the event that such restructuring
                  requires a new non-consolidation opinion pursuant to
                  subparagraph (C) above, Borrower shall give Lender notice of
                  such restructuring together with copies of all instruments
                  effecting such restructuring not less than ten (10) days prior
                  to the date of such restructuring;

                           (E)      In the event that such restructuring
                  requires a new non-consolidation opinion pursuant to
                  subparagraph (C) above, Lender shall have received payment of,
                  or reimbursement for, all costs and expenses incurred by
                  Lender in connection with such restructuring (including, but
                  not limited to, reasonable attorneys' fees and costs and
                  expenses of the Rating Agencies).

                  (vii)    pledges of Borrower's interests in equipment and/or
         fixtures in connection with purchase money financing of such equipment
         and/or fixtures, subject to the requirements of paragraph 12(a)(ii)(P)
         of this Deed of Trust.

                  (viii)   the dissolution of Bunker Hill Senior Mezzanine, LLC
         and/or Bunker Hill Junior Mezzanine, LLC, provided that the following
         conditions are met:

                                      -37-

<PAGE>

                           (A)      no Event of Default or event which with the
                  giving of notice or the passage of time would constitute an
                  Event of Default shall have occurred and remain uncured;

                           (B)      a Securitization of the entire Loan has
                  occurred and Lender has not exercised the Mezzanine Option
                  described in paragraph 62 of this Deed of Trust; and

                           (C)      Borrower shall have delivered to Lender and
                  the Rating Agencies satisfactory evidence in writing that the
                  non-consolidation opinion previously delivered to Lender has
                  not been affected as a result of such dissolution.

                  Lender shall respond to any requests made by Borrower pursuant
to this paragraph 10(h) in a prompt manner. In the event that Lender claims that
Borrower has not satisfied any of the requirements of this paragraph 10(h),
Lender shall specify in writing the reason why any conditions are deemed not
satisfied.

                  11.      REPRESENTATIONS AND COVENANTS CONCERNING THE BORROWER
AND TRUST PROPERTY. Borrower represents, warrants and covenants as follows:

                  (a)      Organization and Existence. Borrower is duly
organized and validly existing as a limited liability company in good standing
under the laws of Delaware and is in good standing in all other jurisdictions in
which Borrower is transacting business. Borrower has the power and authority to
execute, deliver and perform the obligations imposed on it under the Loan
Documents and to consummate the transactions contemplated by the Loan Documents.

                  (b)      Authorization. Borrower has taken all necessary
actions for the authorization of the borrowing on account of the Loan and for
the execution and delivery of the Loan Documents, including, without limitation,
that those members of Borrower whose approval is required by the terms of
Borrower's organizational documents have duly approved the transactions
contemplated by the Loan Documents and have authorized execution and delivery
thereof by the respective signatories. To the best of Borrower's knowledge, no
other consent by any local, state or federal agency is required in connection
with the execution and delivery of the Loan Documents.

                  (c)      Valid Execution and Delivery. All of the Loan
Documents requiring execution by Borrower have been duly and validly executed
and delivered by Borrower.

                  (d)      Enforceability. All of the Loan Documents constitute
valid, legal and binding obligations of Borrower and are fully enforceable
against Borrower in accordance with their terms by Lender and its successors,
transferees and assigns, subject only to bankruptcy laws, and general principles
of equity, insolvency, reorganization, arrangement, moratorium, receivership or
other similar laws relating to or affecting the rights of creditors.

                  (e)      No Defenses. The Note, this Deed of Trust and the
other Loan Documents are not subject to any right of rescission, set-off,
counterclaim or defense, nor would the operation of any of the terms of the
Note, this Deed of Trust or any of the other Loan

                                      -38-

<PAGE>

Documents, or the exercise of any right thereunder, render this Deed of Trust
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury.

                  (f)      Defense of Usurv. Borrower knows of no facts that
would support a claim of usury to defeat or avoid its obligation to repay the
principal of, interest on, and other sums or amounts due and payable under, the
Loan Documents.

                  (g)      No Conflict/Violation of Law. The execution, delivery
and performance of the Loan Documents by the Borrower will not cause or
constitute a default under or conflict with the organizational documents of
Borrower, any Guarantor or any general partner or managing member of Borrower or
any Guarantor. The execution, delivery and performance of the obligations
imposed on Borrower under the Loan Documents will not cause Borrower to be in
default, including after due notice or lapse of time or both, under the
provisions of any agreement, judgment or order to which Borrower is a party or
by which Borrower is bound.

                  (h)      Compliance with Applicable Laws and Regulations. All
of the Improvements and the use of the Trust Property comply in all material
respects with, and shall remain in compliance in all material respects with, all
applicable statutes, rules, regulations and private covenants now or hereafter
relating to the ownership, construction, use or operation of the Trust Property,
including all applicable Prescribed Laws (as hereinafter defined) and all
applicable statutes, rules and regulations pertaining to requirements for equal
opportunity, antidiscrimination, fair housing, environmental protection, zoning
and land use. The Improvements comply in all material respects with, and shall
remain in compliance in all material respects with, applicable health, fire and
building codes. Borrower is not aware of any illegal activities relating to
controlled substances on the Trust Property. All certifications, permits,
licenses and approvals, including, without limitation, certificates of
completion and occupancy permits required for the legal use, occupancy and
operation of the Trust Property as an office building have been obtained and are
in full force and effect. All of the Improvements comply with all material
requirements of any applicable zoning and subdivision laws and ordinances. For
the purposes of this Deed of Trust, "PRESCRIBED LAWS" shall mean , collectively,
(i) the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)
(The USA PATRIOT Act), (ii) Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001, and relating to Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism,
(iii) the International Emergency Economic Power Act, 50 U.S.C. Section 1701 et.
seq. and (iv) all other legal requirements relating to money laundering or
terrorism.

                  (i)      Consents Obtained. All consents, approvals,
authorizations, orders or filings with any court or governmental agency or body,
if any, required for the execution, delivery and performance of the Loan
Documents by Borrower have been obtained or made.

                  (j)      No Litigation. Except as otherwise disclosed to
Lender in writing, there are no pending actions, suits or proceedings,
arbitrations or governmental investigations against the Trust Property, an
adverse outcome of which would materially affect the Borrower's performance
under the Note, this Deed of Trust or the other Loan Documents.

                                      -39-

<PAGE>

                  (k)      Title. The Borrower has good and marketable fee
simple title to the Trust Property, and good title to the Equipment, subject to
no liens, charges or encumbrances other than the Permitted Exceptions and liens,
charges or encumbrances otherwise expressly permitted by the Loan Documents. The
possession of the Trust Property has been peaceful and undisturbed and title
thereto has not been disputed or questioned to the best of Borrower's knowledge.

                  (l)      Permitted Exceptions. The Permitted Exceptions do not
and will not materially and adversely affect (1) the ability of the Borrower to
pay in full the principal and interest on the Note, in a timely manner or (2)
the use of the Trust Property for the use currently being made thereof, the
operation of the Trust Property as currently being operated or the value of the
Trust Property.

                  (m)      First Lien. Upon the execution by the Borrower and
the recording of this Deed of Trust, and upon the filing of UCC-1 financing
statements or amendments thereto, the Lender will have a valid first lien on the
Trust Property and a valid security interest in the Equipment subject to no
liens, charges or encumbrances other than the Permitted Exceptions and liens,
charges or encumbrances otherwise expressly permitted by the Loan Documents.

                  (n)      ERISA. (i) Borrower shall not engage in any
transaction which would cause any obligation, or action taken or to be taken,
hereunder (or the exercise by Lender of any of its rights under the Note, this
Deed of Trust and the Other Loan Document) to be a non-exempt (under a statutory
or administrative class exemption) prohibited transaction under the Employee
Retirement Income Security Act of 1974, as amended ("ERISA").

                  (ii)     Borrower further covenants and agrees to deliver to
         Lender such certifications or other evidence from time to time
         throughout the term of the Loan, as requested by Lender in its sole
         discretion, that (A) Borrower is not an "employee benefit plan" as
         defined in Section 3(3) of ERISA, which is subject to Title I of ERISA,
         or a "governmental plan" within the meaning of Section 3(32) of ERISA;
         (B) Borrower is not . subject to state statutes regulating investments
         and fiduciary obligations with respect to governmental plans; and (C)
         one or more of the following circumstances is true:

                           (x)      Equity interests in Borrower are publicly
                  offered securities, within the meaning of 29 C.F.R. Section
                  2510.3-101(b)(2);

                           (y)      Less than 25 percent of each outstanding
                  class of equity interests in Borrower are held by "benefit
                  plan investors" within the meaning of 29 C.F.R. Section
                  2510.3-101(f)(2);or

                           (z)      Borrower qualifies as an "operating company"
                  or a "real estate operating company" within the meaning of 29
                  C.F.R. Section 2510.3-101(c) or (e) or an investment company
                  registered under The Investment Company Act of 1940.

                  (iii)    As of the date hereof and throughout the term of this
         Deed of Trust, Borrower is not and will not be an "employee benefit
         plan" as defined in Section 3(3) of ERISA, which is subject to Title I
         of ERISA, and the assets of Borrower do not and will not constitute
         "plan assets" of one or more such plans for purposes of Title I of
         ERISA.

                                      -40-

<PAGE>

         As of the date hereof and throughout the term of this Deed of Trust,
         Borrower is not and will not be a "governmental plan" within the
         meaning of Section 3(32) of ERISA and transactions by or with Borrower
         are not and will not be subject to state statutes applicable to
         Borrower regulating investments of and fiduciary obligations with
         respect to governmental plans.

                  (o)      Contingent Liabilities. The Borrower has no known
material contingent liabilities that would materially affect the Borrower's
performance under the Note, this Deed of Trust or the other Loan Documents.

                  (p)      No Other Obligations. The Borrower has no material
financial obligation under any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Borrower is a party or
by which the Borrower or the Trust Property is otherwise bound, other than
obligations incurred in the ordinary course of the operation of the Trust
Property and other than obligations under the Leases, this Deed of Trust and the
other Loan Documents.

                  (q)      Fraudulent Conveyance. The Borrower (1) has not
entered into the Loan or any Loan Document with the actual intent to hinder,
delay, or defraud any creditor and (2) received reasonably equivalent value in
exchange for its obligations under the Loan Documents. Giving effect to the Loan
contemplated by the Loan Documents, the fair saleable value of the Borrower's
assets exceed and will, immediately following the execution and delivery of the
Loan Documents, exceed the Borrower's total liabilities, including, without
limitation, subordinated, unliquidated, disputed or contingent liabilities. The
fair saleable value of the Borrower's assets is and will, immediately following
the execution and delivery of the Loan Documents, be greater than the Borrower's
probable liabilities, including the maximum amount of its contingent liabilities
or its debts as such debts become absolute and matured. The Borrower's assets do
not and, immediately following the execution and delivery of the Loan Documents
will not, constitute unreasonably small capital to carry out its business as
conducted or as proposed to be conducted. The Borrower does not intend to, and
does not believe that it will, incur debts and liabilities (including, without
limitation, contingent liabilities and other commitments) beyond its ability to
pay such debts as they mature (taking into account the timing and amounts to be
payable on or in respect of obligations of the Borrower).

                  (r)      Investment Company Act. The Borrower is not (1) an
"investment company" or a company "controlled" by an "investment company,"
within the meaning of the Investment Company Act of 1940, as amended; (2) a
"holding company" or a "subsidiary company" of a "holding company" or an
"affiliate" of either a "holding company" or a "subsidiary company" within the
meaning of the Public Utility Holding Company Act of 1935, as amended; or (3)
subject to any other federal or state law or regulation which purports to
restrict or regulate its ability to borrow money.

                  (s)      Access/Utilities. The Trust Property has adequate
rights of access to public ways and is served by adequate water, sewer, sanitary
sewer and storm drain facilities. Other than as disclosed on the Survey (as
hereinafter defined), all public utilities necessary to the continued use and
enjoyment of the Trust Property as presently used and enjoyed are located in the
public right-of-way abutting the Trust Property, and all such utilities are
connected so as to

                                      -41-

<PAGE>

serve the Trust Property without passing over other property. All roads
necessary for the full utilization of the Trust Property for its current purpose
have been completed and dedicated to public use and accepted by all governmental
authorities or are the subject of access easements for the benefit of the Trust
Property.

                  (t)      Taxes Paid. Borrower has filed all federal, state,
county and municipal tax returns required to have been filed by Borrower, and,
except as otherwise disclosed to Lender in writing, has paid all taxes which
have become due pursuant to such returns or to any notice of assessment received
by Borrower, and Borrower has no knowledge of any basis for additional
assessment with respect to such taxes other than a possible reassessment of the
Trust Property for real estate tax purposes resulting from transactions
occurring in connection with the contribution of an indirect interest in the
Trust Property to the OP on or prior to the date hereof.

                  (u)      Single Tax Lot. The Premises consists of a single lot
or multiple tax lots; no portion of said tax lot(s) covers property other than
the Premises or a portion of the Premises and no portion of the Premises lies in
any other tax lot.

                  (v)      Special Assessments. Except as disclosed in the title
insurance policy, there are no pending or, to the knowledge of the Borrower,
proposed special or other assessments for public improvements or otherwise
affecting the Trust Property, nor, to the knowledge of the Borrower, are there
any contemplated improvements to the Trust Property that may result in such
special or other assessments.

                  (w)      Intentionally Omitted.

                  (x)      Intentionally Omitted.

                  (y)      Misstatements of Fact. No statement of fact made in
the Loan Documents contains any untrue statement of a material fact or omits to
state any material fact known to Borrower or its Affiliates necessary to make
statements contained herein or therein not misleading. There is no fact
presently known to the Borrower which has not been disclosed which materially
adversely affects, nor as far as the Borrower can foresee, might materially
adversely affect the business, operations or condition (financial or otherwise)
of Borrower.

                  (z)      Condition of Improvements. Except as may be expressly
disclosed in the engineering reports obtained and submitted to Lender, the Trust
Property has not been damaged by fire, water, wind or other cause of loss which
has not been fully restored in all material respects.

                  (aa)     No Insolvency or Judgment. Neither Borrower, nor any
general partner or member of Borrower, nor any Guarantor of the Loan is
currently (a) the subject of or a party to any completed or pending bankruptcy,
reorganization or insolvency proceeding; or (b) the subject of any judgment
unsatisfied of record or docketed in any court of the state in which the Trust
Property is located or in any other court located in the United States. The Loan
will not render the Borrower nor any general partner or member of Borrower
insolvent. As used herein, the term "insolvent" means that the sum total of all
of an entity's liabilities (whether secured or unsecured, contingent or fixed,
or liquidated or unliquidated) is in excess of the value of all such

                                      -42-

<PAGE>

entity's non-exempt assets, i.e., all of the assets of the entity that are
available to satisfy claims of creditors.

                  (bb)     No Condemnation. No part of any property subject to
the Deed of Trust has been taken in condemnation or other like proceeding to an
extent which would impair the value of the Trust Property, the Deed of Trust or
the Loan or the usefulness of such property for the purposes for which it is
currently being operated, nor is any proceeding pending, threatened or known to
be contemplated for the partial or total condemnation or taking of the Trust
Property.

                  (cc)     No Labor or Materialmen Claims. Except for those
improvements and other work performed in the ordinary course of business with
respect to which any applicable payments are not more than 60 days past due, all
parties furnishing labor and materials for which payment is due and payable as
of the date hereof have been paid in full and, except for such liens or claims
insured against by the policy of title insurance to be issued in connection with
the Loan, there are no mechanics', laborers' or materialmens' liens or claims
outstanding for work, labor or materials affecting the Trust Property, whether
prior to, equal with or subordinate to the lien of the Deed of Trust.

                  (dd)     No Purchase Options. No tenant, person, party, firm,
corporation or other entity has an option to purchase the Trust Property, any
portion thereof or any interest therein other than options, rights of first
refusal and similar rights to lease space in the Improvements granted to a
tenant pursuant to its respective Lease or in another writing otherwise
delivered to Lender.

                  (ee)     Leases. The Trust Property is not subject to any
Leases other than the Leases described in the rent roll delivered to Lender in
connection with this Deed of Trust, together with the schedules and the exhibits
attached to such rent roll (collectively, the "RENT ROLL") and any existing
subleases thereunder. No person has any possessory interest in the Trust
Property or right to occupy the same except under and pursuant to the provisions
of the Leases (and any existing subleases thereunder). As of the date hereof (i)
the Borrower is the owner and holder of the landlord's interest under each
Lease; (ii) there are no prior assignments of the landlord's interest in any
Lease or any portion of Rents which are presently outstanding and have priority
over the Assignment of Leases and Rents (the "ASSIGNMENT OF LEASES AND RENTS"),
dated the date hereof, given by Borrower to Lender and intended to be duly
recorded; (iii) true and correct copies of the Leases have been delivered by
Borrower to Lender and the Leases have not been further modified or amended,
except as disclosed to Lender in writing on or prior to the date hereof; (iv)
each Lease is in full force and effect; (v) except as disclosed on the Rent Roll
or in any tenant estoppels delivered to Lender in connection with the Loan
(collectively, the "TENANT ESTOPPELS"), neither Borrower nor, to Borrower's
knowledge, any tenant under any Lease is in default under any of the material
terms, covenants or provisions of the Lease, and, except as disclosed to Lender
in writing, Borrower knows of no event which, but for the passage of time or the
giving of notice or both, would constitute an event of default under any Lease;
(vi) except as expressly set forth in the Leases, the Tenant Estoppels or on the
Rent Roll, there are no offsets or defenses to the payment of any portion of the
Rents; and (vii) except as disclosed on the Rent Roll or in any Tenant Estoppel,
all Rents due and payable under each Lease have been paid in full and, except
for estimated payments of operating expenses and taxes

                                      -43-

<PAGE>

made by tenants in accordance with their Leases, no said Rents have been paid
more than one (1) month in advance of the due dates thereof. For purposes of the
preceding sentence, the term "Lease" shall exclude subleases.

                  (ff)     Intentionally Omitted.

                  (gg)     Boundary Lines. Except as disclosed in the survey of
the Premises and Improvements delivered to Lender in connection with the funding
of the Loan (the "SURVEY"), to Borrower's knowledge, (i) all of the Improvements
which were included in determining the appraised value of the Trust Property lie
wholly within the boundaries and building restriction lines of the Trust
Property, (ii) no improvements on adjoining properties encroach upon the Trust
Property, and (iii) no easements or other encumbrances upon the Premises
encroach upon any of the Improvements, so as to materially and adversely affect
the value or marketability of the Trust Property except those which are insured
against by title insurance.

                  (hh)     Survey. To Borrower's knowledge, the Survey does not
fail to reflect any material matter affecting the Premises or the Improvements
or the title thereto.

                  (ii)     Forfeiture. There has not been and shall never be
committed by Borrower or, to Borrower's knowledge, any other person in occupancy
of or involved with the operation or use of the Trust Property any act or
omission affording the federal government or any state or local government the
right of forfeiture as against the Trust Property or any part thereof or any
monies paid in performance of Borrower's obligations under any of the Loan
Documents.

                  (jj)     Management Agreement. The Management and Leasing
Agreement, dated as of June _____ , 2003 (the "MANAGEMENT AGREEMENT"), between
Borrower and the OP ("MANAGER") pursuant to which Manager operates the Trust
Property is in full force and effect and there is no default or violation by any
party thereunder. The fee due under the Management Agreement, and the terms and
provisions of the Management Agreement, are subordinate to this Deed of Trust
and Manager agrees to attorn to Lender pursuant to and in accordance with that
certain Assignment and Subordination of Management Agreement dated of even date
herewith by and among Borrower, Manager and Lender. Borrower shall not
terminate, cancel, modify, renew or extend the Management Agreement, or enter
into any agreement relating to the management or operation of the Trust Property
with Manager or any other party, in each case in violation of the Loan
Documents, without the express written consent of Lender, which consent shall
not be unreasonably withheld.

                  (kk)     No Broker. No financial advisors, brokers,
underwriters, placement agents, agents or finders have been dealt with by the
Borrower in connection with the Loan.

                  12.      SINGLE PURPOSE ENTITY/SEPARATENESS.

                  (a)      Borrower represents, warrants and covenants that as
of the date hereof:

                  (i)      Bunker Hill Senior Mezzanine, LLC, a Delaware limited
         liability company, is the sole member of Borrower and (ii) Robert A.
         Ortiz and Camilia M. Denny are the "springing members" of Borrower.

                                      -44-

<PAGE>

         (ii)     Borrower is, shall be and continue to be until the Debt has
been paid in full, a Special Purpose Bankruptcy Remote Entity. A "SPECIAL
PURPOSE BANKRUPTCY REMOTE ENTITY" means a corporation or limited liability
company which at all times on and after the date hereof:

                  (A)      is organized solely for the purpose of, and is not
         engaged and will not engage in any business unrelated to acquiring,
         developing, owning, holding, selling, leasing, transferring,
         exchanging, managing and operating the Trust Property, borrowing the
         Loan and entering into, and performing its obligations under, the Loan
         Documents with the Lender, refinancing the Trust Property in connection
         with a permitted repayment of the Loan, and transacting lawful business
         that is incident, necessary and appropriate to accomplish the
         foregoing;

                  (B)      does not have and will not have any assets other than
         those related to the Trust Property;

                  (C)      will not engage in, seek or consent to, any
         dissolution, winding up, liquidation, consolidation or merger, any sale
         of all or substantially all of its assets, any transfer of shareholder
         or membership interests in Borrower or any amendment of its articles of
         incorporation, articles of organization, certificate of formation or
         operating agreement (as applicable) with respect to the matters set
         forth in this paragraph in each case except as permitted in the Loan
         Documents or consented to by Lender in writing;

                  (D)      if such entity is a corporation, has at least two
         Independent Directors (hereinafter denned), and will not cause or allow
         the board of directors of such entity to take any action requiring the
         unanimous affirmative vote of 100% of the members of its board of
         directors unless each Independent Director shall have participated in
         such vote;

                  (E)      if such entity is a single member Delaware limited
         liability company, has (A) a Board of Managers with at least two
         Independent Managers and (B) at least two springing members;

                  (F)      if such entity is (A) a limited liability company,
         has articles of organization, a certificate of formation and/or an
         operating agreement, as applicable, or (B) a corporation, has a
         certificate of incorporation or articles that, in each case, provides
         that such entity will not: (1) dissolve, merge, liquidate, consolidate;
         (2) sell all or substantially all of its assets or the assets of any
         entity in which it has a direct or indirect legal or beneficial
         ownership interest; (3) engage in any other business activity, or amend
         its organizational documents with respect to the matters set forth in
         this paragraph without the consent of the Lender; or (4) without the
         affirmative vote of the Independent Directors and of all other
         directors of the corporation, or of the Independent Managers, as
         applicable, file, a bankruptcy or insolvency petition or otherwise
         institute insolvency proceedings with respect to itself or to any other
         entity in which it has a direct or indirect legal or beneficial
         ownership interest;

                                      -45-

<PAGE>

                  (G)      is and covenants to remain solvent and pay its debts
         and liability (including, as applicable, shared personnel and overhead
         expenses) from its assets as the same shall become due, and is
         maintaining and covenants to maintain adequate capital for the normal
         obligations reasonably foreseeable in a business of its size and
         character and in light of its contemplated business operations;

                  (H)      will not fail to correct any known misunderstanding
         regarding the separate identity of such entity;

                  (I)      will maintain its accounts, books and records
         separate from any other Person and will file its own tax returns to the
         extent required by law, except to the extent that it is required or
         permitted to file consolidated tax returns by law;

                  (J)      will maintain its own records, books, resolutions and
         agreements;

                  (K)      will not commingle its funds or assets with those of
         any other Person;

                  (L)      will hold its assets in its own name;

                  (M)      will maintain its financial statements, accounting
         records and other entity documents separate from any other person and
         will not permit its assets to be listed as assets on the financial
         statement of any other entity except as required by generally accepted
         accounting principles or by law; provided, however, that if Borrower's
         assets are reported on a consolidated basis, any such consolidated
         financial statement shall contain a note indicating that Borrower's
         separate assets and liabilities are neither available to pay the debts
         of the consolidated entity nor constitute obligations of the
         consolidated entity;

                  (N)      will pay its own liabilities and expenses, including
         the salaries of its own employees, if any, out of its own funds and
         assets, and will maintain a sufficient number of employees in light of
         its contemplated business operations;

                  (O)      will observe all corporate or limited liability
         company formalities, as applicable;

                  (P)      has and will have no Indebtedness other than (i) the
         Loan, (ii) liabilities incurred in the ordinary course of business
         relating to the ownership and operation of the Trust Property
         (including, but not limited to, the Financing Installment pursuant to
         paragraph 3(d) hereof and trade payables) and the routine
         administration of Borrower, which do not in the aggregate exceed Four
         Million and No/100 Dollars ($4,000,000), and which are not more than
         sixty (60) days past the date incurred and which amounts are normal and
         reasonable under the circumstances, provided such liabilities are not
         evidenced by a note and are paid when due, and (iii) such other
         liabilities that may be permitted pursuant to this Deed of Trust
         (including, but not limited to, liens against the Trust Property and
         obligations to tenants under Leases that are executed in accordance
         with the terms

                                      -46-

<PAGE>

         and provisions of paragraph 8 of this Deed of Trust) or the other Loan
         Documents;

                  (Q)      will not assume or guarantee or become obligated for
         the debts of any other Person or hold out its credit as being available
         to satisfy the obligations of any other Person except as permitted
         pursuant to this Deed of Trust or the other Loan Documents;

                  (R)      will not acquire obligations or securities of its
         partners, members or shareholders or any other Affiliate except as
         permitted pursuant to this Deed of Trust or the other Loan Documents;

                  (S)      will allocate fairly and reasonably any overhead
         expenses that are shared with any Affiliate, including, but not limited
         to, paying for shared office space and services performed by any
         employee of an Affiliate;

                  (T)      maintains and uses and will maintain and use separate
         invoices and checks bearing its name. The invoices and checks utilized
         by the Special Purpose Bankruptcy Remote Entity or utilized to collect
         its funds or pay its expenses shall bear its own name and shall not
         bear the name of any other entity unless such entity is clearly
         designated as being the Special Purpose Bankruptcy Remote Entity's
         agent;

                  (U)      except as permitted pursuant to this Deed of Trust or
         the other Loan Documents, will not pledge its assets for the benefit of
         any other Person;

                  (V)      will hold itself out and identify itself as a
         separate and distinct entity under its own name or in a name franchised
         or licensed to it by an entity other than an Affiliate of Borrower and
         not as a division or part of any other Person;

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

                  (X)      will not make loans (other than tenant improvement
         allowances and other concessions in the nature of loans under the
         Leases) to any Person or hold evidence of indebtedness issued by any
         other person or entity (other than cash and Permitted Investments or
         other investment-grade securities issued by an entity that is not an
         Affiliate of or subject to common ownership with such entity);

                  (Y)      will not identify its partners, members or
         shareholders, or any Affiliate of any of them, as a division or part of
         it, and shall not identify itself as a division of any other Person;

                  (Z)      will not enter into or be a party to, any transaction
         with its partners, members, shareholders or Affiliates except (A) in
         the ordinary course of its business and on terms which are
         intrinsically fair, commercially reasonable and

                                      -47-

<PAGE>

         are no less favorable to it than would be obtained in a comparable
         arm's-length transaction with an unrelated third party and (B) in
         connection with the Loan Documents;

                  (AA)     other than with respect to matters covered by an
         errors and omissions insurance policy, will not have any obligation to,
         and will not, indemnify its partners, officers, directors or members,
         as the case may be, or any such obligation will be fully subordinated
         to the Debt and will not constitute a claim against it in the event
         that cash flow in excess of the amount required to pay the Debt is
         insufficient to pay such obligation;

                  (BB)     in the case of Borrower, Bunker Hill Senior
         Mezzanine, LLC and Bunker Hill Junior Mezzanine, LLC only, will not
         form, acquire or hold any subsidiary other than as shown on the
         organizational chart furnished to Lender in connection with the Loan;

                  (CC)     except as provided for in any guaranty that is part
         of the Loan Documents including that certain Guarantee (Secured Loan)
         executed by Robert F. Maguire III and certain other parties naming
         Lender and others as beneficiaries dated on or about the date hereof
         (the "BOTTOM DOLLAR GUARANTY)", does not and will not have any of its
         obligations guaranteed by any Affiliate;

                  (DD)     will comply with all of the terms and provisions
         contained in its organizational documents

                  (EE)     with respect to Borrower only, will not permit any
         Affiliate or constituent party independent access to its bank accounts
         other than with respect to the Manager in its capacity as Manager
         pursuant to the Management Agreement;

                  (FF)     with respect to Borrower only, will continuously
         maintain its resolutions, agreements and other instruments regarding
         the transactions contemplated by the Loan as official records;

                  (GG)     will reasonably allocate overhead in good faith and
         consistent with sound accounting practices;

                  (HH)     with respect to Borrower only, other than the
         Guaranty and the Bottom Dollar Guaranty, will not hold out the credit
         of any other person or entity as being responsible for its obligations
         or seek or obtain credit based on the credit of any other person or
         entity; and

                  (II)     will make all oral and written communications,
         including, without limitation, letters, invoices, purchase orders,
         contracts, statements, and applications, solely in the name of Borrower
         if from Borrower.

         (b)      Intentionally Omitted.

                                      -48-

<PAGE>

         (c)      For purposes of this Deed of Trust, the following defined
terms shall have the respective meaning:

                  (i)      "AFFILIATE" means, with respect to any person or
         entity, (a) any corporation in which such entity or any partner,
         shareholder, director, officer, member, or manager of such entity
         directly or indirectly owns or controls more than ten percent (10%) of
         the beneficial interest, (b) any partnership, joint venture or limited
         liability company in which such entity or any partner, shareholder,
         director, officer, member, or manager of such entity is a partner,
         joint venturer or member, (c) any trust in which such entity or any
         partner, shareholder, director, officer, member or manager of such
         entity is a trustee or beneficiary, (d) any entity of any type which is
         directly or indirectly owned or controlled by such entity or any
         partner, shareholder, director, officer, member or manager of such
         entity, (e) any partner, shareholder, director, officer, member,
         manager or employee of such entity, or (f) any Person related by birth,
         adoption or marriage to any partner, shareholder, director, officer,
         member, manager, or employee of such entity.

                  (ii)     "INDEBTEDNESS" means, for any Person, without
         duplication: (a) all indebtedness of such Person, including, but not
         limited to, amounts for borrowed money, for amounts drawn under a
         letter of credit, or for the deferred purchase price of property for
         which such Person or its assets is liable, (b) all unfunded amounts
         under a loan agreement, letter of credit, or other credit facility for
         which such Person would be liable, if such amounts were advanced under
         the credit facility, (c) all amounts required to be paid by such Person
         as a guaranteed payment to partners or a preferred or special dividend,
         including any mandatory redemption of shares or interests, (d) all
         indebtedness guaranteed by such Person, directly or indirectly, (e) all
         obligations under leases that constitute capital leases for which such
         Person is liable, and (f) all obligations of such Person under interest
         rate swaps, caps, floors, collars and other interest hedge agreements,
         in each case whether such Person is liable contingently or otherwise,
         as obligor, Guarantor or otherwise, or in respect of which obligations
         such Person otherwise assures a creditor against loss.

                  (iii)    "INDEPENDENT DIRECTOR" OR "INDEPENDENT MANAGER" means
         a person who is not and will not be while serving and for the prior
         five (5) years has not been (a) a member (other than as a holder of a
         potential interest in a "special purpose" single member limited
         liability company that was to vest upon any event pursuant to which the
         single member ceases to be the single member of such limited liability
         company), director (other than an Independent Director), manager (other
         than an Independent Manager), employee, attorney, or counsel of
         Borrower or its Affiliates, (b) is not a creditor, customer, supplier
         or other person who derives any of its purchases or revenues from its
         activities with Borrower or its Affiliates, or (c) is not a member of
         the immediate family of any member, manager, employee, attorney,
         creditor, customer, supplier or other person referred to above or (d) a
         person controlling or under the common control of anyone listed in (a)
         - (c). A person that otherwise satisfies the foregoing shall not be
         disqualified from serving as an Independent Director or Independent
         Manager if such individual is at the time of initial appointment, or at
         any time while serving as an Independent Director or Independent
         Manager, as applicable, an Independent Director or Independent Manager
         of a "Special Purpose Entity" affiliated with Borrower.

                                      -49-

<PAGE>

                  (iv)     "PERSON" means any individual, corporation,
         partnership, joint venture, association, joint stock company, trust,
         trustee, estate, limited liability company, unincorporated
         organization, real estate investment trust, government or any agency or
         political subdivision thereof, or any other form of entity.

                  (d)      The representations and warranties set forth in this
paragraph 12 shall survive for so long as any amount remains payable to Lender
under this Deed of Trust or any other Loan Document.

                  (e)      All of the assumptions made in that certain
substantive non-consolidation opinion letter dated the date hereof, delivered by
Cox, Castle and Nicholson LLP in connection with the Loan (the "INSOLVENCY
OPINION"), including, but not limited to, any exhibits attached thereto, are
true and correct in all material respects. Borrower has complied and will comply
in all material respects with all of the assumptions made with respect to it in
the Insolvency Opinion. To the best of Borrower's knowledge, each entity other
than the Borrower with respect to which an assumption is made in the Insolvency
Opinion has complied and will comply in all material respects with all of the
assumptions made with respect to it in the Insolvency Opinion.

                  13.      ESTOPPEL CERTIFICATES AND NO DEFAULT AFFIDAVITS.
After request by Lender, Borrower shall within ten (10) days furnish Lender with
a statement, duly acknowledged and certified, setting forth (i) the amount of
the original principal amount of the Note, (ii) the unpaid principal amount of
the Note, (iii) the rate of interest of the Note, (iv) the date installments of
interest and/or principal were last paid, (v) any known offsets or defenses to
the payment of the Debt, if any, (vi) that the Note, this Deed of Trust and the
other Loan Documents are valid, legal and binding obligations and have not been
modified or if modified, giving particulars of such modification; and (vii)
reaffirming all representations and warranties of Borrower set forth herein and
in the other Loan Documents as of the date requested by Lender or, to the extent
of any changes to any such representations and warranties, so stating such
changes.

                  14.      CONTROLLING AGREEMENT. It is expressly stipulated and
agreed to be the intent of Borrower, and Lender at all times to comply with
applicable state law or applicable United States federal law (to the extent that
it permits Lender to contract for, charge, take, reserve, or receive a greater
amount of interest than under state law) and that this paragraph 14 (and the
similar paragraph contained in the Note) shall control every other covenant and
agreement in this Deed of Trust and the other Loan Documents. If the applicable
law (state or federal) is ever judicially interpreted so as to render usurious
any amount called for under the Note or under any of the other Loan Documents,
or contracted for, charged, taken, reserved, or received with respect to the
Debt, or if Lender's exercise of the option to accelerate the maturity of the
Note, or if any prepayment by Borrower results in Borrower having paid any
interest in excess of that permitted by applicable law, then it is Borrower's
and Lender's express intent that all excess amounts theretofore collected by
Lender shall be credited on the principal balance of the Note and all other Debt
without any resulting prepayment penalty or premium (or, if the Note and all
other Debt have been or would thereby be paid in full, refunded to Borrower),
and the provisions of the Note and the other Loan Documents immediately be
deemed reformed and the amounts thereafter collectible hereunder and thereunder
reduced, without the necessity of the execution of any new documents, so as to
comply with the applicable law, but so as to permit the

                                      -50-

<PAGE>

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

                  15.      CHANGES IN LAWS REGARDING TAXATION. If any law is
enacted or adopted or amended after the date of this Deed of Trust which deducts
the Debt from the value of the Trust Property for the purpose of taxation or
which imposes a tax, either directly or indirectly, on the Debt or Lender's
interest in the Trust Property, Borrower will pay such tax, with interest and
penalties thereon, if any. In the event Lender is advised by counsel chosen by
it that the payment of such tax or interest and penalties by Borrower would be
unlawful or taxable to Lender or unenforceable or provide the basis for a
defense of usury, then in any such event, Lender shall have the option, by
written notice of not less than one hundred twenty (120) days, to declare the
Debt immediately due and payable without any prepayment consideration except
that if an Event of Default has occurred, then the Borrower shall pay to Lender
an additional amount equal to the Yield Maintenance Premium (as defined in the
Note).

                  16.      NO CREDITS ON ACCOUNT OF THE DEBT. Borrower will not
claim or demand or be entitled to any credit or credits on account of the Debt
for any part of the Taxes or Other Charges assessed against the Trust Property,
or any part thereof, and no deduction shall otherwise be made or claimed from
the assessed value of the Trust Property, or any part thereof, for real estate
tax purposes by reason of this Deed of Trust or the Debt. In the event such
claim, credit or deduction shall be required by law, Lender shall have the
option, by written notice of. not less than one hundred twenty (120) days, to
declare the Debt immediately due and payable without any prepayment
consideration except that if an Event of Default has occurred, then the Borrower
shall pay to Lender an additional amount equal to the Yield Maintenance Premium.

                  17.      DOCUMENTARY STAMPS. If at any time the United States
of America, any State thereof or any subdivision of any such State shall require
revenue or other stamps to be affixed to the Note or this Deed of Trust, or
impose any other tax or charge on the same, Borrower will pay for the same, with
interest and penalties thereon, if any.

                  18.      BOOKS AND RECORDS.

                  (a)      The financial statements heretofore furnished to
Lender are, as of the dates specified therein, complete and correct in all
material respects and fairly present in all material respects the financial
condition of the Borrower and any other persons or entities that are the subject
of such financial statements, and are prepared in accordance with generally
accepted accounting principles. Since the date of such financial statements,
there has been no materially adverse change in the financial condition,
operation or business of Borrower from that set forth in said financial
statements.

                                      -51-

<PAGE>

                  (b)      Borrower will maintain full and accurate books of
accounts and other records reflecting the results of the operations of the Trust
Property and will furnish to Lender on or before forty-five (45) days after the
end of each calendar quarter the following items, each certified by Borrower as
being true and correct in all material respects: (i) a written statement (rent
roll) dated as of the last day of each such calendar quarter identifying each of
the Leases (excluding subleases) by the term, space occupied, rental required to
be paid, security deposit paid, any rental concessions, and a report identifying
any defaults or payment delinquencies thereunder; (ii) monthly and year to date
operating statements prepared for each calendar month during each such calendar
quarter, noting Net Operating Income, Gross Income from Operations, and
Operating Expenses, and including an itemization of actual (not pro forma)
capital expenditures and other information necessary and sufficient under
generally accepted accounting practices to fairly represent the financial
position and results of operation of the Trust Property during such calendar
month, all in form satisfactory to Lender; (iii) a property balance sheet for
each such calendar quarter; (iv) a comparison of the budgeted income and
expenses and the actual income and expenses for year to date together with a
detailed explanation of any variances of five percent (5%) or more between
budgeted and actual amounts for such year to date period; and (v) a calculation
reflecting the Debt Service Coverage Ratio (as hereinafter defined) as of the
last day of each such calendar quarter. Until a Securitization has occurred,
Borrower shall furnish monthly each of the items listed in the immediately
preceding sentence within thirty (30) days after the end of such month. Within
one hundred twenty (120) days following the end of each calendar year (provided,
however, if requested by Lender, Borrower shall use commercially reasonable
efforts to provide Lender with any unaudited annual statements prior to such
date), Borrower shall furnish statements of its financial affairs and condition
including a balance sheet and a statement of profit and loss for the Borrower in
such detail as Lender may reasonably request, and setting forth the financial
condition and the income and expenses for the Trust Property for the immediately
preceding calendar year, which statements shall be prepared by Borrower.
Borrower's annual, financial statements shall include (x) a list of the tenants,
if any, occupying more than twenty (20%) percent of the total floor area of the
Improvements, and (y) a breakdown showing the year in which each Lease then in
effect expires and the percentage of total floor area of the Improvements and
the percentage of base rent with respect to which Leases shall expire in each
such year, each such percentage to be expressed on both a per year and a
cumulative basis. Borrower's annual financial statements shall be accompanied by
a certificate executed by a financial officer of Borrower or the REIT, as
applicable, stating that each such annual financial statement presents fairly
the financial condition of the Trust Property being reported upon and shall be
audited by a "Big Four" accounting firm or other independent certified public
accountant reasonably acceptable to Lender, which audited financial statements
may be in the form of schedules to the audited consolidated financial statements
of the REIT. Each such annual financial statement shall be prepared in
accordance with generally accepted accounting principles consistently applied or
the method used in connection with the financial statements delivered to Lender
in connection with the closing of the Loan. At any time and from time to time
Borrower shall deliver to Lender or its agents such other financial data as
Lender or its agents shall reasonably request with respect to the ownership,
maintenance, use and operation of the Trust Property.

                  (c)      For the purposes of this Deed of Trust, the term
"DEBT SERVICE COVERAGE RATIO" shall mean a ratio for the applicable period in
which: (A) the numerator is the Net Operating Income (excluding interest on
credit accounts) for such period as set forth in the

                                      -52-

<PAGE>

statements required hereunder and (B) the denominator is the aggregate amount of
principal and interest due and payable for such period under the Note.

                  19.      PERFORMANCE OF OTHER AGREEMENTS. Borrower shall
observe and perform each and every material term to be observed or performed by
Borrower pursuant to the terms of any agreement or recorded instrument affecting
or pertaining to the Trust Property.

                  20.      FURTHER ACTS, ETC. Borrower will, at the cost of
Borrower, and without expense to Lender, do, execute, acknowledge and deliver
all and every such further acts, deeds, conveyances, mortgages, assignments,
notices of assignment, Uniform Commercial Code financing statements or
continuation statements, transfers and assurances as Lender shall, from time to
time, require, for the better assuring, conveying, assigning, transferring, and
confirming unto Lender the property and rights hereby deeded, mortgaged, given,
granted, bargained, sold, alienated, enfeoffed, conveyed, confirmed, pledged,
assigned and hypothecated or intended now or hereafter so to be, or which
Borrower may be or may hereafter become bound to convey or assign to Lender, or
for carrying out the intention or facilitating the performance of the terms of
this Deed of Trust or for filing, registering or recording this Deed of Trust or
for facilitating the sale of the Loan and the Loan Documents as described in
paragraph 61 below. Borrower, promptly upon demand, will execute and deliver and
hereby authorizes Lender to execute in the name of Borrower or without the
signature of Borrower to the extent Lender may lawfully do so, one or more
financing statements, chattel mortgages or other instruments, to evidence more
effectively the security interest of Lender in the Trust Property. Upon
foreclosure, the appointment of a receiver or any other relevant action,
Borrower will, at the cost of Borrower and without expense to Lender, cooperate
fully and completely to effect the assignment or transfer of any license,
permit, agreement or any other right necessary or useful to the operation of or
the Trust Property. Borrower grants to Lender and Trustee upon the occurrence of
an Event of Default and prior to the acceptance of a cure thereof by Lender an
irrevocable power of attorney coupled with an interest for the purpose of
exercising and perfecting any and all rights and remedies available to Lender
and Trustee at law and in equity, including, without limitation, such rights and
remedies available to Lender and Trustee pursuant to this paragraph.

                  21.      RECORDING OF DEED OF TRUST, ETC. Borrower forthwith
upon the execution and delivery of this Deed of Trust and thereafter, from time
to time, will cause this Deed of Trust, and any security instrument creating a
lien or security interest or evidencing the lien hereof upon the Trust Property
and each instrument of further assurance to be filed, registered or recorded in
such manner and in such places as may be required by any present or future law
in order to publish notice of and fully to protect the lien or security interest
hereof upon, and the interest of Lender in, the Trust Property. Borrower will
pay all filing, registration or recording fees, and all expenses incident to the
preparation, execution and acknowledgment of this Deed of Trust, any deed of
trust supplemental hereto, any security instrument with respect to the Trust
Property and any instrument of further assurance, and all federal, state, county
and municipal, taxes, duties, imposts, assessments and charges arising out of or
in connection with the execution and delivery of this Deed of Trust, any deed of
trust supplemental hereto, any security instrument with respect to the Trust
Property or any instrument of farther assurance, except where prohibited by law
so to do. Borrower shall hold harmless and indemnify Lender, its successors and
assigns, against any liability incurred by reason of the imposition of any tax
on the making and recording of this Deed of Trust.

                                      -53-

<PAGE>

                  22.      REPORTING REQUIREMENTS. Borrower agrees to give
prompt notice to Lender of the insolvency or bankruptcy filing of Borrower or
the death, insolvency or bankruptcy filing of any Guarantor.

                  23.      EVENTS OF DEFAULT. The Debt shall become immediately
due and payable at the option of Lender upon the happening of any one or more of
the following events of default (each an "EVENT OF DEFAULT"):

                  (a)      if any portion of the Debt that is due on a Payment
Date is not paid on or before the related Payment Date or, for any payment other
than payments due on a Payment Date, the date on which such payment is due;

                  (b)      subject to Borrower's right to contest as provided
herein, if any of the Taxes are not paid prior to the date that any interest,
late fees or other penalties would accrue thereon or any of the Other Charges
are not paid when the same are due and payable (unless sums equaling the amount
of Taxes and Other Charges then due and payable have been delivered to Lender in
accordance with paragraph 6 hereof);

                  (c)      if the Policies are not kept in full force and
effect, or if the Policies or certificates evidencing such Policies are not
delivered to Lender within fifteen (15) days after request;

                  (d)      except as expressly permitted by the terms of this
Deed of Trust or the other Loan Documents, if Borrower transfers or encumbers
any portion of the Trust Property without Lender's prior written consent;

                  (e)      if any representation or warranty of Borrower, or of
any Guarantor, made herein or in any other Loan Document or in any certificate,
report, financial statement or other instrument or document furnished to Lender
in connection with the Loan shall have been false or misleading in any material
respect when made, provided that if such misrepresentation was not intentional,
is susceptible to cure and Lender will not be adversely affected by a delay in
enforcing its remedy under the Loan Documents, Borrower shall have thirty (30)
days after notice thereof to cure such default;

                  (f)      if Borrower or any Guarantor shall make an assignment
for the benefit of creditors or if Borrower shall generally not be paying its
debts as they become due;

                  (g)      if a receiver (other than a receiver appointed by
Lender), liquidator or trustee of Borrower or of any Guarantor shall be
appointed or if Borrower or any Guarantor shall be adjudicated a bankrupt or
insolvent, or if any petition for bankruptcy, reorganization or arrangement
pursuant to federal bankruptcy law, or any similar federal or state law, shall
be filed by or against, consented to, or acquiesced in by, Borrower or any
Guarantor or if any proceeding for the dissolution or liquidation of Borrower or
of any Guarantor shall be instituted; however, if such appointment,
adjudication, petition or proceeding was involuntary and not consented to by
Borrower or such Guarantor, upon the same not being discharged, stayed or
dismissed within ninety (90) days;

                                      -54-

<PAGE>

                  (h)      if Borrower shall be in default under any other deed
of trust or security agreement covering any part of the Trust Property whether
it be superior or junior in lien to this Deed of Trust;

                  (i)      subject to Borrower's right to contest as provided
herein, if the Trust Property becomes subject to any mechanic's, materialman's
or other lien that is not otherwise permitted by the Loan Documents and such
lien is not removed of record within thirty (30) days of the filing or recording
of such lien (except a hen for local real estate taxes and assessments or
special taxes not then due and payable);

                  (j)      if Borrower fails to cure properly any violations of
laws or ordinances affecting or which may be interpreted to affect the Trust
Property within thirty (30) days after Borrower first receives notice of any
such violations; provided, however, that if such violation is reasonably
susceptible of cure, but not within such thirty (30) day period and the
applicable law or ordinance permits such longer period within which to cure such
violation, then Borrower shall be permitted up to an additional sixty (60) days
to cure such violation provided that Borrower diligently and continuously
pursues such cure;

                  (k)      except as permitted in this Deed of Trust, the
alteration, improvement, demolition or removal of any of the Improvements
without the prior consent of Lender;

                  (1)      if Borrower shall continue to be in default under any
term, covenant, or provision of the Note or any of the other Loan Documents,
beyond applicable notice and/or cure periods contained in those documents;

                  (m)      if Borrower fails to cure a default under any other
term, covenant or provision of this Deed of Trust within thirty (30) days after
Borrower first receives notice of any such default; provided, however, if such
default is reasonably susceptible of cure, but not within such thirty (30) day
period, then Borrower may be permitted up to an additional sixty (60) days to
cure such default provided that Borrower diligently and continuously pursues
such cure;

                  (n)      if without Lender's prior written consent, except as
otherwise expressly permitted by the Loan Documents, (i) the Management
Agreement is terminated, (ii) the ownership, management or control of Manager is
transferred, (iii) there is a material change in the Management Agreement, or
(iv) there shall be a material default by Borrower under the Management
Agreement that is not cured within any applicable notice or cure period provided
under the Management Agreement;

                  (o)      if Borrower ceases to continuously operate the Trust
Property or any material portion thereof as an office building for any reason
whatsoever (other than temporary cessation in connection with any repair or
renovation thereof undertaken with the consent of Lender);

                  (p)      if any of the assumptions contained in the Insolvency
Opinion, or in any other "non-consolidation" opinion delivered to Lender in
connection with the Loan, or in any other "non-consolidation" delivered
subsequent to the closing of the Loan, is or shall become untrue in any respect;
or

                                      -55-

<PAGE>

                  (q)      if Borrower fails to comply with the covenants as to
Prescribed Laws set forth in paragraph 9 hereof.

                  24.      LATE PAYMENT CHARGE. If any portion of the Debt is
not paid on or before the date on which such payment is due after the expiration
of any applicable grace period, Borrower shall pay to Lender upon demand an
amount equal to the lesser of five percent (5%) of such due and unpaid portion
of the Debt or the maximum amount permitted by applicable law in order to defray
a portion of the expenses incurred by Lender in handling and processing such
delinquent payment and to compensate Lender for the loss of the use of such
delinquent payment, and such amount shall be secured by this Deed of Trust.

                  25.      RIGHT TO CURE DEFAULTS. Upon the occurrence of any
Event of Default and prior to the acceptance of a cure thereof by Lender or if
Borrower fails to make any payment (including, without limitation, any required
payments for taxes, insurance or to discharge any liens with respect to the
Property) or to do any act as herein provided, Lender may, but without any
obligation to do so and without notice to or demand on Borrower and without
releasing Borrower from any obligation hereunder, make or do the same in such
manner and to such extent as Lender may deem necessary to protect the security
hereof. Lender is authorized to enter upon the Trust Property for such purposes
or appear in, defend, or bring any action or proceeding to protect its interest
in the Trust Property or to foreclose this Deed of Trust or collect the Debt,
and the cost and expense thereof (including reasonable attorneys' fees and
disbursements to the extent permitted by law), with interest at the Default Rate
(as defined in the Note) for the period after notice from Lender that such cost
or expense was incurred to the date of payment to Lender, shall constitute a
portion of the Debt, shall be secured by this Deed of Trust and the other Loan
Documents and shall be due and payable to Lender upon demand.

                  26.      ADDITIONAL REMEDIES.

                  (a)      Upon the occurrence of any Event of Default, subject
to the requirements and limitations of applicable law, Lender or Trustee may
take such action, without notice or demand, as it deems advisable to protect and
enforce its rights against Borrower and in and to the Trust Property by Lender
itself or through Trustee or otherwise, including, without limitation, the
following actions, each of which may be pursued concurrently or otherwise, at
such time and in such order as Lender may determine, in its sole discretion,
without impairing or otherwise affecting the other rights and remedies of
Lender:

                  (i)      declare the entire Debt to be immediately due and
         payable;

                  (ii)     institute a proceeding or proceedings, judicial or
         nonjudicial, by advertisement or otherwise, for the complete
         foreclosure of this Deed of Trust in which case the Trust Property or
         any interest therein may be sold for cash or upon credit in one or more
         parcels or in several interests or portions and in any order or manner;

                  (iii)    with or without entry, to the extent permitted and
         pursuant to the procedures provided by applicable law, institute
         proceedings for the partial foreclosure of this Deed of Trust for the
         portion of the Debt then due and payable, subject to the continuing
         lien of this Deed of Trust for the balance of the Debt not then due;

                                      -56-

<PAGE>

                  (iv)     sell for cash or upon credit the Trust Property or
         any part thereof and all estate, claim, demand, right, title and
         interest of Borrower therein and rights of redemption thereof, pursuant
         to the power of sale contained herein or otherwise, at one or more
         sales, as an entirety or in parcels, at such time and place, upon such
         terms and after such notice thereof as may be required or permitted by
         law;

                  (v)      institute an action, suit or proceeding in equity for
         the specific performance of any covenant, condition or agreement
         contained herein, or in any of the other Loan Documents;

                  (vi)     recover judgment on the Note either before, during or
         after any proceedings for the enforcement of this Deed of Trust;

                  (vii)    apply for the appointment of a trustee, receiver,
         liquidator or conservator of the Trust Property, without notice and
         without regard for the adequacy of the security for the Debt and
         without regard for the solvency of the Borrower, any Guarantor or of
         any person, firm or other entity liable for the payment of the Debt;

                  (viii)   enforce Lender's interest in the Leases and Rents and
         enter into or upon the Trust Property, either personally or by its
         agents, nominees or attorneys and dispossess Borrower and its agents
         and servants therefrom, and thereupon Lender may (A) use, operate,
         manage, control, insure, maintain, repair, restore and otherwise deal
         with all and every part of the Trust Property and conduct the business
         thereat; (B) complete any construction on the Trust Property in such
         manner and form as Lender deems advisable; (C) make alterations,
         additions, renewals, replacements and improvements to or on the Trust
         Property; (D) exercise all rights and powers of Borrower with respect
         to the Trust Property, whether in the name of Borrower or otherwise,
         including, without limitation, the right to make, cancel, enforce or
         modify Leases, obtain and evict tenants, and demand, sue for, collect
         and receive all Rents; and (E) apply the receipts from the Trust
         Property to the payment of the Debt, after deducting therefrom all
         expenses (including reasonable attorneys' fees and disbursements)
         incurred in connection with the aforesaid operations and all amounts
         necessary to pay the taxes, assessments insurance and other charges in
         connection with the Trust Property, as well as just and reasonable
         compensation for the services of Lender, its counsel, agents and
         employees;

                  (ix)     require Borrower to pay monthly in advance to Lender,
         or any receiver appointed to collect the Rents, the fair and reasonable
         rental value for the use and occupation of any portion of the Trust
         Property occupied by Borrower and require Borrower to vacate and
         surrender possession to Lender of the Trust Property or to such
         receiver and, in default thereof, evict Borrower by summary proceedings
         or otherwise; or

                  (x)      pursue such other rights and remedies as may be
         available at law or in equity or under the Uniform Commercial Code
         including without limitation the right to receive and/or establish a
         lock box for all Rents proceeds from the Intangibles and any other
         receivables or rights to payments of Borrower relating to the Trust
         Property.

                                      -57-

<PAGE>

                  In the event of a sale, by foreclosure or otherwise, of less
than all of the Trust Property, this Deed of Trust shall continue as a lien on
the remaining portion of the Trust Property.

                  (b)      The proceeds of any sale made under or by virtue of
this paragraph, together with any other sums which then may be held by Lender
under this Deed of Trust, whether under the provisions of this paragraph or
otherwise, shall be applied by Lender to the payment of the Debt in such
priority and proportion as Lender in its sole discretion shall deem proper.

                  (c)      Except as may be prohibited by applicable law, Lender
may adjourn from time to time any sale by it to be made under or by virtue of
this Deed of Trust by announcement at the time and place appointed for such sale
or for such adjourned sale or sales; and, except as otherwise provided by any
applicable provision of law, Lender or Trustee, without further notice or
publication, may make such sale at the time and place to which the same shall be
so adjourned.

                  (d)      Upon the completion of any sale or sales pursuant
hereto, Lender, or an officer of any court empowered to do so, shall execute and
deliver to the accepted purchaser or purchasers a good and sufficient
instrument, or good and sufficient instruments, conveying, assigning and
transferring all estate, right, title and interest in and to the property and
rights sold. Lender and Trustee are hereby irrevocably appointed the true and
lawful attorney of Borrower, in its name and stead, to make all necessary
conveyances, assignments, transfers and deliveries of the Trust Property and
rights so sold and for that purpose Lender and Trustee may execute all necessary
instruments of conveyance, assignment and transfer, and may substitute one or
more persons with like power, Borrower hereby ratifying and confirming all that
its said attorney or such substitute or substitutes shall lawfully do by virtue
hereof. Except as may be prohibited by applicable law, any sale or sales made
under or by virtue of this paragraph, whether made under the power of sale
herein granted or under or by virtue of judicial proceedings or of a judgment or
decree of foreclosure and sale, shall operate to divest all the estate, right,
title, interest, claim and demand whatsoever, whether at law or in equity, of
Borrower in and to the properties and rights so sold, and shall be a perpetual
bar both at law and in equity against Borrower and against any and all persons
claiming or who may claim the same, or any part thereof from, through or under
Borrower.

                  (e)      Upon any sale made under or by virtue of this
paragraph, whether made under the power of sale herein granted or under or by
virtue of judicial proceedings or of a judgment or decree of foreclosure and
sale, Lender may bid for and acquire the Trust Property or any part thereof and
in lieu of paying cash therefor may make settlement for the purchase price by
crediting upon the Debt the net sales price after deducting therefrom the
expenses of the sale and costs of the action and any other sums which Lender is
authorized to deduct under this Deed of Trust.

                  (f)      Except as may be prohibited by applicable law, no
recovery of any judgment by Lender and no levy of an execution under any
judgment upon the Trust Property or upon any other property of Borrower shall
affect in any manner or to any extent the lien of this Deed of Trust upon the
Trust Property or any part thereof, or any liens, rights, powers or

                                      -58-

<PAGE>

remedies of Lender hereunder, but such liens, rights, powers and remedies of
Lender shall continue unimpaired as before.

                  (g)      Lender may terminate or rescind any proceeding or
other action brought in connection with its exercise of the remedies provided in
this paragraph at any time before the conclusion thereof, as determined in
Lender's sole discretion and without prejudice to Lender.

                  (h)      Lender may resort to any remedies and the security
given by the Note, this Deed of Trust or the Loan Documents in whole or in part,
and in such portions and in such order as determined by Lender's sole
discretion. Except as may be prohibited by applicable law, no such action shall
in any way be considered a waiver of any rights, benefits or remedies evidenced
or provided by the Note, this Deed of Trust or any of the other Loan Documents.
The failure of Lender or Trustee to exercise any right, remedy or option
provided in the Note, this Deed of Trust or any of the other Loan Documents
shall not be deemed a waiver of such right, remedy or option or of any covenant
or obligation secured by the Note, this Deed of Trust or the other Loan
Documents. No acceptance by Lender of any payment after the occurrence of any
Event of Default and no payment by Lender of any obligation for which Borrower
is liable hereunder shall be deemed to waive or cure any Event of Default with
respect to Borrower, or Borrower's liability to pay such obligation. Except as
may be prohibited by applicable law, no sale of all or any portion of the Trust
Property, no forbearance on the part of Lender or Trustee, and no extension of
time for the payment of the whole or any portion of the Debt or any other
indulgence given by Lender or Trustee to Borrower, shall operate to release or
in any manner affect the interest of Lender in the remaining Trust Property or
the liability of Borrower to pay the Debt. No waiver by Lender or Trustee shall
be effective unless it is in writing and then only to the extent specifically
stated. All costs and expenses of Lender and Trustee in exercising the rights
and remedies under this paragraph 26 (including reasonable attorneys' fees and
disbursements to the extent permitted by law), shall be paid by Borrower
immediately upon notice from Lender or Trustee, with interest at the Default
Rate for the period after notice from Lender or Trustee and such costs and
expenses shall constitute a portion of the Debt and shall be secured by this
Deed of Trust.

                  (i)      The interests and rights of Lender under the Note,
this Deed of Trust or in any of the other Loan Documents shall not be impaired
by any indulgence, including (i) any renewal, extension or modification which
Lender may grant with respect to any of the Debt, (ii) any surrender,
compromise, release, renewal, extension, exchange or substitution which Lender
may grant with respect to the Trust Property or any portion thereof; or (iii)
any release or indulgence granted to any maker, endorser, Guarantor or surety of
any of the Debt.

                  27.      RIGHT OF ENTRY. In addition to any other rights or
remedies granted under this Deed of Trust, Lender, Trustee and their agents,
during the Term, shall have the right upon reasonable notice to Borrower to
enter and inspect the Trust Property during normal business hours in a manner
which does not unreasonably interfere with tenants or occupants thereof. The
cost of such inspections or audits shall be borne by Borrower should Lender
determine that an Event of Default exists, including the cost of all follow up
or additional investigations or inquiries deemed reasonably necessary by Lender.
The cost of such inspections, if not paid for by Borrower promptly upon demand,
may be added to the principal balance of the sums due

                                      -59-

<PAGE>

under the Note and this Deed of Trust and shall bear interest thereafter until
paid at the Default Rate if not paid within five (5) days after such demand.

                  28.      SECURITY AGREEMENT.

                  (a)      This Deed of Trust is both a real property mortgage
and a "security agreement" within the meaning of the Uniform Commercial Code.
The Trust Property includes both real and personal property and all other rights
and interests, whether tangible or intangible in nature, of Borrower in the
Trust Property. Borrower by executing and delivering this Deed of Trust has
granted and hereby grants to Lender and Trustee, as security for the Debt, a
security interest in the Trust Property to the full extent that the Trust
Property may be subject to the Uniform Commercial Code (said portion of the
Trust Property so subject to the Uniform Commercial Code being called in this
paragraph the "COLLATERAL"). This Deed of Trust shall also constitute a "fixture
filing" for the purposes of the Uniform Commercial Code. As such, this Deed of
Trust covers all items of the Collateral that are or are to become fixtures.
Information concerning the security interest herein granted may be obtained from
the parties at the addresses of the parties set forth in the first paragraph of
this Deed of Trust.

                  (b)      If an Event of Default shall occur, Lender and
Trustee, in addition to any other rights and remedies which it may have, shall
have and may exercise immediately and without demand, any and all rights and
remedies granted to a secured party upon default under the Uniform Commercial
Code, including, without limiting the generality of the foregoing, the right to
take possession of the Collateral or any part thereof, and to take such other
measures as Lender or Trustee may deem necessary for the care, protection and
preservation of the Collateral. Upon request or demand of Lender or Trustee,
Borrower shall at its expense assemble the Collateral and make it available to
Lender and Trustee at a convenient place acceptable to Lender. Borrower shall
pay to Lender and Trustee on demand any and all expenses, including attorneys'
fees and disbursements, incurred or paid by Lender and Trustee in protecting the
interest in the Collateral and in enforcing the rights hereunder with respect to
the Collateral. Any notice of sale, disposition or other intended action by
Lender and Trustee with respect to the Collateral sent to Borrower in accordance
with the provisions hereof at least ten (10) Business Days prior to such action,
shall constitute commercially reasonable notice to Borrower. The proceeds of any
disposition of the Collateral, or any part thereof, may be applied by Lender to
the payment of the Debt in such priority and proportions as Lender in its sole
discretion shall deem proper. In the event of any change in name, identity or
structure of Borrower, Borrower shall notify Lender and Trustee thereof and
promptly after request shall execute (if necessary), file and record such
Uniform Commercial Code forms as are necessary to maintain the priority of
Lender's lien upon and security interest in the Collateral, and shall pay all
expenses and fees in connection with the filing and recording thereof. If Lender
shall require the filing or recording of additional Uniform Commercial Code
forms or continuation statements, Borrower shall, promptly after request,
execute (if necessary), file and record such Uniform Commercial Code forms or
continuation statements as Lender shall deem necessary, and shall pay all
expenses and fees in connection with the filing and recording thereof, it being
understood and agreed, however, that no such additional documents shall increase
Borrower's obligations under the Note, this Deed of Trust and any of the other
Loan Documents. Borrower hereby irrevocably appoints Lender as its
attomey-in-fact, coupled with an interest, to file with the appropriate

                                      -60-

<PAGE>

public office on its behalf any financing or other statements signed only by
Lender, as secured party, in connection with the Collateral covered by this Deed
of Trust.

                  29.      ACTIONS AND PROCEEDINGS. Lender or Trustee has the
right to appear in and defend any action or proceeding brought with respect to
the Trust Property and to bring any action or proceeding, in the name and on
behalf of Borrower, which Lender, in its sole discretion, decides should be
brought to protect their interest in the Trust Property. Lender shall, at its
option, be subrogated to the lien of any deed of trust or other security
instrument discharged in whole or in part by the Debt, and any such subrogation
rights shall constitute additional security for the payment of the Debt.

                  30.      WAIVER OF SETOFF AND COUNTERCLAIM. All amounts due
under this Deed of Trust, the Note and the other Loan Documents shall be payable
without setoff, counterclaim or any deduction whatsoever. Borrower hereby waives
the right to assert a setoff, counterclaim (other than a mandatory or compulsory
counterclaim) or deduction in any action or proceeding in which Lender or
Trustee is a participant, or arising out of or in any way connected with this
Deed of Trust, the Note, any of the other Loan Documents, or the Debt.

                  31.      CONTEST OF CERTAIN CLAIMS. Notwithstanding the
provisions of paragraphs 5 and 23 hereof, Borrower shall not be in default for
failure to pay or discharge Taxes, Other Charges or mechanic's or materialman's
lien asserted against the Trust Property if, and so long as, (a) Borrower shall
have notified Lender of same within five (5) Business Days of obtaining
knowledge thereof; (b) Borrower shall diligently and in good faith contest the
same by appropriate legal proceedings which shall operate to prevent the
enforcement or collection of the same and the sale of the Trust Property or any
part thereof, to satisfy the same; (c) Borrower shall have furnished to Lender a
cash deposit (which may consist in whole or in part of funds contained in an
existing reserve previously established by Borrower in connection with the Loan
for the specific purpose of paying the items being contested), or an indemnity
bond satisfactory to Lender with a surety reasonably satisfactory to Lender, in
an amount equal to one hundred twenty-five percent (125%) of the amount of the
Taxes, Other Charges or mechanic's or materialman's lien claim, plus a
reasonable additional sum to pay all costs, interest and penalties that may be
imposed or incurred in connection therewith, to assure payment of the matters
under contest and to prevent any sale or forfeiture of the Trust Property or any
part thereof; (d) Borrower shall promptly upon final determination thereof pay
the amount of any such Taxes, Other Charges or claim so determined, together
with all costs, interest and penalties which may be payable in connection
therewith; (e) the failure to pay the Taxes, Other Charges or mechanic's or
materialman's lien claim does not constitute a default under any other deed of
trust, mortgage or security interest covering or affecting any part of the Trust
Property; and (f) notwithstanding the foregoing, Borrower shall immediately upon
request of Lender pay (and if Borrower shall fail so to do, Lender may, but
shall not be required to, pay or cause to be discharged or bonded against) any
such Taxes, Other Charges or claim notwithstanding such contest, if in the
opinion of Lender, the Trust Property or any part thereof or interest therein
may be in danger of being sold, forfeited, foreclosed, terminated, cancelled or
lost. Lender may pay over any such cash deposit or part thereof to the claimant
entitled thereto at any time when, in the reasonable judgment of Lender, the
entitlement of such claimant is established.

                                      -61-

<PAGE>

                  32.      RECOVERY OF SUMS REQUIRED TO BE PAID. Lender shall
have the right from time to time to take action to recover any sum or sums which
constitute a part of the Debt as the same become due, without regard to whether
or not the balance of the Debt shall be due, and without prejudice to the right
of Lender or Trustee thereafter to bring an action of foreclosure, or any other
action, for a default or defaults by Borrower existing at the time such earlier
action was commenced.

                  33.      MARSHALLING AND OTHER MATTERS. Borrower hereby
waives, to the extent permitted by law, the benefit of all appraisement,
valuation, stay, extension, reinstatement and redemption laws now or hereafter
in force and all rights of marshalling in the event of any sale hereunder of the
Trust Property or any part thereof or any interest therein. Further, Borrower
hereby expressly waives any and all rights of redemption from sale under any
order or decree of foreclosure of this Deed of Trust on behalf of Borrower, and
on behalf of each and every person acquiring any interest in or title to the
Trust Property subsequent to the date of this Deed of Trust and on behalf of all
persons to the extent permitted by. applicable law.

                  34.      HAZARDOUS SUBSTANCES. Borrower hereby represents and
warrants to Lender that, to Borrower's knowledge, except as disclosed in the
report, dated March 7, 2003, prepared by Certified Environments, Inc. (the
"PHASE I REPORT") and delivered to Lender in connection with the Loan: (a) the
Trust Property is not in violation of any local, state, federal or other
governmental authority, statute, ordinance, code, order, decree, law, rule or
regulation pertaining to or imposing liability or standards of conduct
concerning environmental regulation, contamination or clean-up including,
without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act, as amended ("CERCLA"), the Resource Conservation and Recovery
Act, as amended ("RCRA"), the Emergency Planning and Community Right-to-Know Act
of 1986, as amended, the Hazardous Substances Transportation Act, as amended,
the Solid Waste Disposal Act, as amended, the Clean Water Act, as amended, the
Clean Air Act, as amended, the Toxic Substance Control Act, as amended, the Safe
Drinking Water Act, as amended, the Occupational Safety and Health Act, as
amended, any state super-lien and environmental clean-up statutes and all rules
and regulations adopted in respect to the foregoing laws whether presently in
force or coming into being and/or effectiveness hereafter (collectively,
"ENVIRONMENTAL LAWS"); (b) the Trust Property is not subject to any private or
governmental lien or judicial or administrative notice or action or inquiry,
investigation or claim relating to hazardous and/or toxic, dangerous and/or
regulated, substances, wastes, materials, raw materials which include hazardous
constituents, pollutants or contaminants including without limitation,
petroleum, tremolite, anthlophylie, actinolite or polychlorinated biphenyls and
any other substances or materials which are included under or regulated by
Environmental Laws or which are considered by scientific opinion to be otherwise
dangerous in terms of the health, safety and welfare of humans (collectively,
"HAZARDOUS SUBSTANCES"): (c) no Hazardous Substances are or have been (including
the period prior to Borrower's acquisition of the Trust Property) discharged,
generated, treated, disposed of or stored on, incorporated in, or removed or
transported from the Trust Property other than in compliance with all
Environmental Laws; (d) no Hazardous Substances are present in, on or under any
nearby real property which could migrate to or otherwise affect the Trust
Property and which would reasonably be likely to result in a requirement under
applicable Environmental Laws to remediate the Trust Property; and (e) no
underground storage tanks exist on any of the Trust Property. So long as
Borrower owns or is in possession of the Trust Property, Borrower (i) shall keep
or cause the Trust Property to

                                      -62-

<PAGE>

be kept free from Hazardous Substances except those in compliance with all
Environmental Laws or any permits issued with respect thereto, (ii) shall
promptly notify Lender if Borrower shall become aware of any Hazardous
Substances on the Trust Property and/or if Borrower shall become aware that the
Trust Property is in violation of any Environmental Laws and/or if Borrower
shall become aware of any condition on the Trust Property which shall pose a
threat to the health, safety or welfare of humans, and (iii) shall remove or
remediate such Hazardous Substances and/or cure such violations and/or remove or
remediate such threats, as applicable, as required by law (or as shall be
reasonably required by Lender in the case of removal or remediation which is not
required by law, but in response to the opinion of a licensed hydrogeologist,
licensed environmental engineer or other qualified consultant engaged by Lender
("LEADER'S CONSULTANT") provided that such removal, remediation or cure is
reasonably necessary to eliminate imminent danger to the health, safety or
welfare of humans and would customarily be performed by prudent owners of
properties similar to the Trust Property in similar circumstances), promptly
after Borrower becomes aware of same, at Borrower's sole expense.
Notwithstanding anything to the contrary in this paragraph, the Borrower,
Manager and/or tenants on the Trust Property may use and store ordinary amounts
of Hazardous Substances at the Trust Property if such use or storage is in
connection with business supplies used by Borrower, a tenant in accordance with
the terms of its Lease or by Manager pursuant to the Management Agreement or is
in connection with the ordinary cleaning and maintenance of the Trust Property
so long as such use and storage (A) does not violate any applicable
Environmental Laws and (B) is not the subject of any specific recommendations in
the Phase I Report that would prohibit such use or storage. Nothing herein shall
prevent Borrower from recovering such expenses from any other party that may be
liable for such removal or cure. The obligations and liabilities of Borrower
under this paragraph 34 shall survive any termination, satisfaction, or
assignment of this Deed of Trust and the exercise by Lender of any of its rights
or remedies hereunder, including, without limitation, the acquisition of the
Trust Property by foreclosure or a conveyance in lieu of foreclosure.

                  35.      ASBESTOS. Borrower represents and warrants that to
Borrower's knowledge no asbestos or any substance or material containing
asbestos ("ASBESTOS") is located on the Trust Property except as may have been
disclosed in the Phase I Report delivered to Lender in connection with the Loan.
Borrower shall not install in the Trust Property, nor permit to be installed in
the Trust Property, Asbestos and shall remove any Asbestos promptly upon
discovery to the satisfaction of Lender, at Borrower's sole expense. Borrower
shall in all instances comply with, and ensure compliance by all occupants of
the Trust Property with, all applicable federal, state and local laws,
ordinances, rules and regulations with respect to Asbestos, and shall keep the
Trust Property free and clear of any liens imposed pursuant to such laws,
ordinances, rules or regulations. In the event that Borrower receives any notice
or advice from any governmental agency or any source whatsoever with respect to
Asbestos on, affecting or installed on the Trust Property, Borrower shall
promptly notify Lender. The obligations and liabilities of Borrower under this
paragraph 35 shall survive any termination, satisfaction, or assignment of this
Deed of Trust and the exercise by Lender of any of its rights or remedies
hereunder, including but not limited to, the acquisition of the Trust Property
by foreclosure or a conveyance in lieu of foreclosure.

                  36.      ENVIRONMENTAL MONITORING. Borrower shall give prompt
written notices to Lender of: (a) any proceeding or inquiry by any party with
respect to the presence of any

                                      -63-

<PAGE>

Hazardous Substance or Asbestos on, under, from or about the Trust Property, (b)
all claims made or threatened by any third party against Borrower or the Trust
Property relating to any loss or injury resulting from any Hazardous Substance
or Asbestos, and (c) Borrower's discovery of any occurrence or condition on any
real property adjoining or in the vicinity of the Trust Property that could
reasonably be expected to cause the Trust Property to be subject to any
investigation or cleanup pursuant to any Environmental Law. Borrower shall
permit Lender to join and participate in, as a party if it so elects, any legal
proceedings or actions initiated with respect to the Trust Property in
connection with any actual or alleged violation of Environmental Law or the
presence of Hazardous Substance at the Trust Property, and Borrower shall pay
all reasonable attorneys' fees and disbursements incurred by Lender in
connection therewith. Upon Lender's request, at any time and from time to time
while this Deed of Trust is in effect but not more frequently than once per
calendar year, unless Lender has determined (in the exercise of its good faith
judgment) that reasonable cause exists for the performance of an environmental
inspection or audit of the Trust Property, Borrower shall provide at Borrower's
sole expense, (i) an inspection or audit of the Trust Property prepared by a
licensed hydrogeologist or licensed environmental engineer approved by Lender
indicating the presence or absence of Hazardous Substances on, in or near the
Trust Property, and (ii) an inspection or audit of the Trust Property prepared
by a duly qualified engineering or consulting firm approved by Lender,
indicating the presence or absence of Asbestos on the Trust Property; provided,
however, any such inspection or audit requested by Lender, during the Term, in
excess of one (1) inspection during each five (5) year period commencing upon
the date hereof, shall be performed at Lender's expense unless an Event of
Default exists or Lender has determined (in the exercise of its good faith and
judgment) that reasonable cause exists for the performance of an environmental
inspection or audit. If Borrower fails to provide such inspection or audit
within sixty (60) days after such request Lender may order same, and Borrower
hereby grants to Lender and its employees and agents access to the Trust
Property and a license to undertake such inspection or audit upon reasonable
prior notice to Borrower and in a manner that does not unreasonably interfere
with tenants or occupants thereof. The cost of such inspection or audit obtained
by Lender upon Borrower's failure to do so shall bear interest from the date
such costs are incurred by Lender until paid at the Default Rate and shall be.
due and payable by Borrower to Lender within ten (10) days after demand, and if
not so paid, may be added to the Debt. In the event that any environmental site
assessment report prepared in connection with such inspection or audit
recommends that an operations and maintenance plan be implemented for Asbestos
or any Hazardous Substance, Borrower shall cause such operations and maintenance
plan to be prepared and implemented at Borrower's expense upon request of
Lender. In the event that any investigation, site monitoring, containment
cleanup, removal, restoration, or other work of any kind is reasonably necessary
under an applicable Environmental Law (the "REMEDIAL WORK"), Borrower shall
promptly commence and thereafter diligently prosecute to completion all such
Remedial Work, provided that in any event Borrower shall complete such Remedial
Work within the time required by applicable Environmental Law. All Remedial Work
shall be performed by contractors approved in advance by Lender, and under the
supervision of a consulting engineer approved by Lender. All costs and expenses
of such Remedial Work shall be paid by Borrower including, without limitation,
Lender's reasonable attorneys' fees and disbursements incurred in connection
with monitoring or review of such Remedial Work. In the event Borrower shall
fail to timely commence, or cause to be commenced, or fail to diligently
prosecute to completion, such Remedial Work, Lender may, but shall not be
required to, cause such Remedial Work to be

                                      -64-

<PAGE>

performed, and all costs and expenses thereof, or incurred in connection
therewith, shall bear interest from the date such costs are incurred by Lender
until paid at the Default Rate and shall be due and payable by Borrower to
Lender within ten (10) days after demand, and if not so paid, may be added to
the Debt.

                  37.      HANDICAPPED ACCESS.

                  (a)      Borrower agrees that the Trust Property shall at all
times comply to the extent applicable with the requirements of the Americans
with Disabilities Act of 1990, the Fair Housing Amendments Act of 1988 (if
applicable), all state and local laws and ordinances related to handicapped
access and all rules, regulations, and orders issued pursuant thereto including,
without limitation, the Americans with Disabilities Act Accessibility Guidelines
for Buildings and Facilities (collectively "ACCESS LAWS").

                  (b)      Notwithstanding any provisions set forth herein or in
any other document regarding Lender's approval of alterations of the Trust'
Property, Borrower shall not alter the Trust Property in any manner which would
increase Borrower's responsibilities for compliance with the applicable Access
Laws without the prior written approval of Lender except for tenant improvements
constructed by Borrower or by any of its tenants that are otherwise permitted by
the terms of this Deed of Trust or the other Loan Documents. Lender may
condition any such approval upon receipt of a certificate of Access Law
compliance from an architect, engineer, or other person acceptable to Lender.

                  (c)      Borrower agrees to give prompt notice to Lender of
the receipt by Borrower of any complaints related to violation of any Access
Laws and of the commencement of any proceedings or investigations which relate
to compliance with applicable Access Laws.

                  38.      INDEMNIFICATION. In addition to any other
indemnifications provided herein or in the other Loan Documents, Borrower shall
protect, defend, indemnify and save harmless Lender and Trustee from and against
all liabilities, obligations, claims, demands, damages, penalties, causes of
action, losses, fines, costs and expenses (including, without limitation,
reasonable attorneys' fees and disbursements), imposed upon or incurred by or
asserted against Lender- or Trustee by reason of (a) ownership of this Deed of
Trust, the Trust Property or any interest therein or receipt of any Rents; (b)
any accident, injury to or death of persons or loss of or damage to property
occurring in, on or about the Trust Property or any part thereof or on the
adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets
or ways; (c) any use, nonuse or condition in, on or about the Trust Property or
any part thereof or on adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (d) any failure on the part of Borrower to
perform or comply with any of the terms of this Deed of Trust; (e) performance
of any labor or services or the furnishing of any materials or other property in
respect of the Trust Property or any part thereof; (f) the presence, disposal,
escape, seepage, leakage, spillage, discharge, emission, release, or threatened
release of any Hazardous Substance or Asbestos on, from, or affecting the Trust
Property; (g) any personal injury (including wrongful death) or property damage
(real or personal) arising out of or related to such Hazardous Substance or
Asbestos; (h) any lawsuit brought or threatened, settlement reached, or
government order relating to such Hazardous Substance or Asbestos; (i) any
violation of the Environmental Laws, which are based upon or in any way related
to such Hazardous Substance

                                      -65-

<PAGE>

or Asbestos including, without limitation, the costs and expenses of any
Remedial Work, attorney and consultant fees and disbursements, investigation and
laboratory fees, court costs, and litigation expenses; (j) any failure of the
Trust Property to comply with any Access Laws; (k) any representation or
warranty made in the Note, this Deed of Trust or any of the other Loan Documents
being false or misleading in any material respect as of the date such
representation or warranty was made; (1) any claim by brokers, finders or
similar persons claiming to be entitled to a commission in connection with the
Loan, any Lease or other transaction involving the Trust Property or any part
thereof under any legal requirement or any liability asserted against Lender
with respect thereto; and (m) the claims of any lessee of any or any portion of
the Trust Property or any person acting through or under any lessee or otherwise
arising under or as a consequence of any Lease. Notwithstanding the foregoing,
Borrower shall not be liable under such indemnification to the extent such
liabilities, obligations, claims, demands, damages, penalties, causes of action,
losses, fines, costs or expenses result from the gross negligence, willful
misconduct or illegal acts of Lender or Lender's agents or from any Hazardous
Substance or Asbestos introduced onto the Trust Property by Lender or its agents
or which are introduced onto the Trust Property by a third party after
foreclosure or conveyance in lieu of foreclosure or actual possession of the
Trust Property by Lender or its agents and such indemnification shall not inure
to the benefit of any future owner of the Trust Property other than Lender, its
nominees and their respective Affiliates or the purchaser of the Trust Property
by foreclosure of the Deed of Trust or deed in lieu thereof. Any amounts payable
to Lender or Trustee by reason of the application of this paragraph shall be
secured by this Deed of Trust and shall become immediately due and payable and
shall bear interest at the Default Rate from the date loss or damage is
sustained by Lender or Trustee until paid if not paid within five (5) days of
demand therefor. The obligations and liabilities of Borrower under this
paragraph 38 shall survive any termination, satisfaction, or assignment of this
Deed of Trust and the exercise by Lender of any of its rights or remedies
hereunder, including, but not limited to, the acquisition of the Trust Property
by foreclosure or a conveyance in lieu of foreclosure.

                  39.      NOTICES. Any notice, report, demand or other
instrument authorized or required to be given or furnished ("NOTICES") shall be
in writing and shall be given as follows: (a) by hand delivery; (b) by deposit
in the United States mail as first class certified mail, return receipt
requested, postage paid; (c) by overnight nationwide commercial courier service;
or (d) by telecopy transmission (other than for notices of default) with a
confirmation copy to be delivered by duplicate notice in accordance with any of
clauses (a)-(c) above, in each case, addressed to the party intended to receive
the same at the following address(es):

                  Lender:

                           Greenwich Capital Financial Products, Inc.
                           600 Steamboat Road
                           Greenwich, Connecticut 06830
                           Attention: Mortgage Loan Department
                           Telecopier: (203) 618-2052

                                      -66-

<PAGE>

                  with copies to:

                           Cadwalader, Wickersham & Taft LLP
                           100 Maiden Lane
                           New York, New York 10038
                           Attention: Alan W. Lawrence, Esq.
                           Telecopier: (212) 504-6666

                  Borrower:

                           Library Square Associates, LLC
                           555 West Fifth Street, Suite
                           5000 Los Angeles, California 90013
                           Attention: Mr. Robert F. Maguire III and
                                      Mark T. Lammas, Esq.
                           Telecopier: (213)533-5100

                  with a copy to:

                           Cox, Castle & Nicholson LLP
                           2049 Century Park East, 28th Floor
                           Los Angeles, California 90067
                           Attention: Douglas P. Snyder, Esq.
                           Telecopier: (310) 277-7889

                  Trustee:

                           Commonwealth Land Title Company
                           888 6th Street, 4th Floor
                           Los Angeles, California 90017

                  Any party may change the address to which any such Notice is
to be delivered, by furnishing ten (10) days written notice of such change to
the other parties in accordance with the provisions of this paragraph 39.
Notices shall be deemed to have been given on the date they are actually
received; provided, that the inability to deliver Notices because of a changed
address of which no Notice was given, or rejection or refusal to accept any
Notice offered for delivery shall be deemed to be receipt of the Notice as of
the date of such inability to deliver or rejection or refusal to accept
delivery. Notice for either party may be given by its respective counsel.
Additionally, notice from Lender may also be given by the Servicer.

                  40.      AUTHORITY.

                  (a)      Borrower represents and warrants that it has full
power, authority and right to execute, deliver and perform its obligations
pursuant to this Deed of Trust, and to deed, mortgage, give, grant, bargain,
sell, alien, enfeoff, convey, confirm, warrant, pledge, hypothecate and assign
the Trust Property pursuant to the terms hereof and to keep and observe all of
the terms of this Deed of Trust on Borrower's part to be performed.

                                      -67-

<PAGE>

                  (b)      Borrower represents and warrants that Borrower is not
a "foreign person" within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended, and applicable Treasury Department
regulations, including temporary regulations (the "CODE").

                  41.      WAIVER OF NOTICE. Borrower shall not be entitled to
any notices of any nature whatsoever from Lender or Trustee except with respect
to matters for which this Deed of Trust or the other Loan Documents specifically
and expressly provide for the giving of notice by Lender or Trustee to Borrower
and except with respect to matters for which Lender or Trustee is required by
applicable law to give notice, and Borrower hereby expressly waives the right to
receive any notice from Lender or Trustee with respect to any matter for which
this Deed of Trust or the other Loan Documents do not specifically and expressly
provide for the giving of notice by Lender or Trustee to Borrower.

                  42.      REMEDIES OF BORROWER. Other than with respect to
instances in which Lender has acted in bad faith, in the event that a claim or
adjudication is made that Lender has acted unreasonably or unreasonably delayed
acting in any case where by law or under the Note, this Deed of Trust or any of
the other Loan Documents, it has an obligation to act reasonably or promptly,
neither Lender nor Trustee shall be liable for any monetary damages, and
Borrower's remedies shall be limited to injunctive relief or declaratory
judgment.

                  43.      SOLE DISCRETION OF LENDER. Wherever pursuant to this
Deed of Trust, Lender exercises any right given to it to consent or not consent
or approve or disapprove, or any arrangement or term is to be satisfactory to
Lender, the decision of Lender to consent or not consent, to approve or
disapprove or to decide that arrangements or terms are satisfactory or not
satisfactory shall be in the sole discretion of Lender and shall be final and
conclusive, except as may be otherwise expressly and specifically provided
herein.

                  44.      NON-WAIVER. The failure of Lender to insist upon
strict performance of any term hereof shall not be deemed to be a waiver of any
term of this Deed of Trust. Borrower shall not be relieved of Borrower's
obligations hereunder by reason of (a) the failure of Lender to comply with any
request of Borrower or Guarantor to take any action to foreclose this Deed of
Trust or otherwise enforce any of the provisions hereof or of the Note, or the
other Loan Documents, (b) the release, regardless of consideration, of the whole
or any part of the Trust Property, or of any person liable for the Debt or any
portion thereof, or (c) any agreement or stipulation by Lender extending the
time of payment or otherwise modifying or supplementing the terms of the Note,
this Deed of Trust or any of the other Loan Documents. Lender may resort for the
payment of the Debt to any other security held by Lender in such order and
manner as Lender, in its sole discretion, may elect. Lender or Trustee may take
action to recover the Debt, or any portion thereof, or to enforce any covenant
hereof without prejudice to the right of Lender or Trustee thereafter to
foreclosure this Deed of Trust. The rights and remedies of Lender or Trustee
under this Deed of Trust shall be separate, distinct and cumulative and none
shall be given effect to the exclusion of the others. No act of Lender or
Trustee shall be construed as an election to proceed under any one provision
herein to the exclusion of any other provision. Lender or Trustee shall not be
limited exclusively to the rights and remedies herein stated but shall be
entitled to every right and remedy now or hereafter afforded at law or in
equity.

                                      -68-

<PAGE>

                  45.      NO ORAL CHANGE. This Deed of Trust, and any
provisions hereof, may not be modified, amended, waived, extended, changed,
discharged or terminated orally or by any act or failure to act on the part of
Borrower or Lender, but only by an agreement in writing signed by the party
against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.

                  46.      LIABILITY. If Borrower consists of more than one
person or entity, the obligations and liabilities of each such person or entity
hereunder shall be joint and several. Subject to the provisions hereof requiring
Lender's consent to any transfer of the Trust Property, this Deed of Trust shall
be binding upon and inure to the benefit of Borrower and Lender and their
respective successors and assigns forever.

                  47.      INAPPLICABLE PROVISIONS. If any term, covenant or
condition of the Note or this Deed of Trust is held to be invalid, illegal or
unenforceable in any respect, the Note and this Deed of Trust shall be construed
without such provision.

                  48.      HEADINGS. ETC. The headings and captions of various
paragraphs of this Deed of Trust are for convenience of reference only and are
not to be construed as defining or limiting, in any way, the scope or intent of
the provisions hereof.

                  49.      DUPLICATE ORIGINALS. This Deed of Trust may be
executed in any number of duplicate originals and each such duplicate original
shall be deemed to be an original.

                  50.      DEFINITIONS. Unless the context clearly indicates a
contrary intent or unless otherwise specifically provided herein, words used in
this Deed of Trust may be used interchangeably in singular or plural form and
the word "Borrower" shall mean "each Borrower and any subsequent owner or owners
of the Trust Property or any part thereof or any interest therein," the word
"Lender" shall mean "Lender and any subsequent holder of the Note," the word
"Trustee" shall mean "Trustee and any subsequent holder of this Deed of Trust,"
the word "Note" shall mean "the Note and any other evidence of indebtedness
secured by this Deed of Trust," the word "person" shall include an individual,
corporation, partnership, trust, unincorporated association, government,
governmental authority, and any other entity, and the words "Trust Property"
shall include any portion of the Trust Property and any interest therein and the
words "attorneys' fees" shall include any and all reasonable attorneys' fees,
paralegal and law clerk fees, including, without limitation, fees at the
pre-trial, trial and appellate levels incurred or paid by Lender in protecting
its interest in the Trust Property and Collateral and enforcing its rights
hereunder. Whenever the context may require, any pronouns used herein shall
include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns and pronouns shall include the plural and vice versa.

                  51.      HOMESTEAD. Borrower hereby waives and renounces all
homestead and exemption rights provided by the Constitution and the laws of the
United States and of any state, in and to the Trust Property as against the
collection of the Debt, or any part hereof.

                  52.      ASSIGNMENTS. Lender shall have the right to assign or
transfer its rights under this Deed of Trust without limitation. Any assignee or
transferee shall be entitled to all the benefits afforded Lender under this Deed
of Trust.

                                      -69-

<PAGE>

                  53.      WAIVER OF JURY TRIAL. BORROWER HEREBY AGREES NOT TO
ELECT A TRIAL BY JURY OF ANT ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY
RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY" SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THE NOTE, THIS DEED OF TRUST, OR THE OTHER LOAN
DOCUMENTS, OR ANY CLAM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION
THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND
VOLUNTARILY BY BORROWER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE
AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.
LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING
AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER.

                  54.      GOVERNING LAW. (A) THIS DEED OF TRUST WAS NEGOTIATED
IN THE STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY BORROWER IN THE
STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTE WERE DISBURSED FROM THE STATE OF
NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE
PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS DEED OF TRUST AND THE OBLIGATIONS
ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH
STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF
THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE
CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS
CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE
GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE
PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED
BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE
CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE
OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY
LAW, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS PARAGRAPH 54(A) ABOVE,
BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT
THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS DEED OF TRUST AND THE NOTE, AND
THIS DEED OF TRUST AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW.

                  (B)      ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER
OR BORROWER ARISING OUT OF OR RELATING TO THIS DEED OF TRUST MAY AT LENDER'S
OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK,
COUNTY OF NEW YORK

                                      -70-

<PAGE>

PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND BORROWER
WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR
FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT CORPORATION TRUST
COMPANY, 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011, AS ITS AUTHORIZED AGENT TO
ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE
SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN
NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID
ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN
THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON BORROWER, IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF
NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED
ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME
TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW
YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND
ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A
SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW
YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

                  55.      TRUSTEE'S FEES; SUBSTITUTE TRUSTEE.

                  (a)      Borrower shall pay all costs, fees and expenses
incurred by Trustee and Trustee's agents and counsel in connection with the
performance by Trustee of Trustee's duties hereunder and all such costs, fees
and expenses shall be secured by this Deed of Trust.

                  (b)      Trustee shall be under no duty to take any action
hereunder except as expressly required hereunder or by law, or to perform any
act which would involve Trustee in any expense or liability or to institute or
defend any suit in respect hereof, unless properly indemnified to Trustee's
reasonable satisfaction. Trustee, by acceptance of this Deed of Trust, covenants
to perform and fulfill the trusts herein created, being liable, however, only
for willful negligence or misconduct, and hereby waives any statutory fee and
agrees to accept reasonable compensation, in lieu thereof, for any services
rendered by Trustee in accordance with the terms hereof. Lender may remove
Trustee at any time or from time to time and select a successor trustee. In the
event of the death, removal, resignation, refusal to act, or inability to act of
Trustee, or in its sole discretion for any reason whatsoever, Lender may,
without notice and without specifying any reason therefor and without applying
to any court, select and appoint a successor trustee, by an instrument recorded
wherever this Deed of Trust is recorded and all powers, rights, duties and
authority of Trustee, as aforesaid, shall thereupon become vested in such
successor. Such substitute trustee shall not be required to give bond for the
faithful performance of the duties of Trustee hereunder unless required by
Lender. The procedure

                                      -71-

<PAGE>

provided for in this paragraph for substitution of Trustee shall be in addition
to and not in exclusion of any other provisions for substitution, by law or
otherwise.

                  56.      POWER OF SALE.

                  (a)      Upon the occurrence of an Event of Default, Trustee,
or the agent or successor of Trustee, at the request of Lender, shall sell or
offer for sale the Trust Property in such portions, order and parcels as Lender
may determine with or without having first taken possession of same, to the
highest bidder for cash at one or more public auctions in accordance with the
terms and provisions of the law of the State in which the Trust Property is
located. Such sale shall be made at the area within the courthouse of the
county in which the Trust Property (or any portion thereof to be sold) is
situated (whether the parts or parcels thereof, if any, in different counties
are contiguous or not, and without the necessity of having any personal property
hereby secured present at such sale) which is designated by the applicable court
of such County as the area in which public sales are to take place, or, if no
such area is designated, at the area at the courthouse designated in the notice
of sale as the area in which the sale will take place, on such day and at such
times as permitted under applicable law of the State where the Trust Property is
located, after advertising the time, place and terms of sale and that portion of
the Trust Property in accordance with such law, and after having served written
or printed notice of the proposed sale by certified mail on each Borrower
obligated to pay the Note and other secured indebtedness secured by this Deed of
Trust according to the records of Lender in accordance with applicable law. The
affidavit of any person having knowledge of the facts to the effect that such
service was completed shall be prima facie evidence of the fact of service.

                  At any such public sale, Trustee may execute and deliver in
the name of Borrower to the purchaser a conveyance of the Trust Property or any
part of the Trust Property in fee simple. In the event of any sale under this
Deed of Trust by virtue of the exercise of the powers herein granted, or
pursuant to any order in any judicial proceeding or otherwise, the Trust
Property may be sold in its entirety or in separate parcels and in such manner
or order as Lender in its sole discretion may elect, and if Lender so elects,
Trustee may sell the personal property covered by this Deed of Trust at one or
more separate sales in any manner permitted by the Uniform Commercial Code of
the State in which the Trust Property is located, and one or more exercises of
the powers herein granted shall not extinguish or exhaust such powers, until all
the Trust Property is sold or the Note and other secured indebtedness is paid in
full. If the Note and other secured indebtedness is now or hereafter further
secured by any chattel mortgages, pledges, contracts or guaranty, assignments of
lease, or other security instruments, Lender at its option may exhaust the
remedies granted under any of said security instruments either concurrently or
independently, and in such order as Lender may determine.

                  (b)      Upon any foreclosure sale or sales of all or any
portion of the Trust Property under the power herein granted, Lender may bid for
and purchase the Trust Property and shall be entitled to apply all or any part
of the Debt as a credit to the purchase price.

                  (c)      In the event of a foreclosure or a sale of all or any
portion of the Trust Property under the power herein granted, the proceeds of
said sale shall be applied, in whatever order Lender in its sole discretion may
decide, to the expenses of such sale and of all proceedings in connection
therewith (including, without limitation, attorneys' fees and expenses), to fees
and

                                      -72-

<PAGE>

expenses of Trustee (including, without limitation, Trustee's attorneys' fees
and expenses), to insurance premiums, liens, assessments, taxes and charges
(including, without limitation, utility charges advanced by Lender), to payment
of the outstanding principal balance of the Debt, and to the accrued interest on
all of the foregoing; and the remainder, if any, shall be paid to Borrower, or
to the person or entity lawfully entitled thereto.

                  57.      RECOURSE PROVISIONS. Subject to the qualifications
below, Lender shall not enforce the liability and obligation of Borrower or its
constituent members, partners, shareholders, directors, employees or agents or
the direct or indirect constituent members, partners, shareholders, directors,
employees or agents thereof (collectively, the "BORROWER PARTIES") or any other
Person, to perform and observe the obligations contained in this Deed of Trust,
the Note or any of the other Loan Documents by any action or proceeding wherein
a money judgment shall be sought against any of the Borrower Parties or any
other Person, except that Lender may bring a foreclosure action, an action for
specific performance or any other appropriate action or proceeding to enable
Lender to enforce and realize upon the Trust Property, the Rents or any other
collateral given to Lender pursuant to this Deed of Trust and the other Loan
Documents; provided, however, that, except as specifically provided herein, any
judgment in any such action or proceeding shall be enforceable against the
Borrower Parties only to the extent of their interest in the Trust Property, the
Rents and in any other collateral given to Lender, and Lender, by accepting this
Deed of Trust, the Note and the other Loan Documents, agrees that it shall not
sue for, seek or demand any deficiency judgment against any of the Borrower
Parties or any other Person in any such action or proceeding under or by reason
of or in connection with this Deed of Trust, the Note or any of the other Loan
Documents. The provisions of this paragraph shall not, however, (i) constitute a
waiver, release or impairment of any obligation evidenced or secured by this
Deed of Trust, the Note or any of the other Loan Documents; (ii) impair the
right of Lender to name any of the Borrower Parties, as a party defendant in any
action or suit for foreclosure and sale under this Deed of Trust; (iii) affect
the validity or enforceability of any guaranty made in connection with the Loan
or any rights and remedies of Lender thereunder; (iv) impair the right of Lender
to obtain the appointment of a receiver; (v) impair the enforcement of the
Assignment of Leases and Rents executed in connection herewith; or (vi)
constitute a waiver of the right of Lender to enforce the liability and
obligation of Borrower (but not against any members of Borrower or their direct
or indirect constituent members or partners or any other Person), by money
judgment or otherwise, to the extent of any loss, damage, cost, expense,
liability, claim or other obligation incurred by Lender (including attorneys'
fees and costs reasonably incurred) arising out of or in connection with the
following:

                  (a)      fraud or intentional misrepresentation by Borrower or
any Guarantor in connection with the Loan;

                  (b)      intentional physical waste (including, but not
limited to, waste due to gross negligence) by Borrower or any affiliate thereof;
provided, however, such physical waste shall exclude wear and tear to the Trust
Property that occurs in the ordinary course of business of the Trust Property by
Borrower or any affiliate thereof;

                  (c)      the material breach of any representation, warranty,
covenant or indemnification provision in that certain Environmental and
Hazardous Substance

                                      -73-

<PAGE>

Indemnification Agreement of even date herewith given by Borrower to Lender or
in this Deed of Trust concerning Environmental Laws, Hazardous Substances and
Asbestos;

                  (d)      the removal or disposal by Borrower or any affiliate
thereof of any portion of the Trust Property after an Event of Default, unless
such portion of the Trust Property is replaced by an item of equal or greater
value as determined by Lender in its reasonable discretion;

                  (e)      the misapplication or conversion by Borrower or any
affiliate thereof of (i) any insurance proceeds paid by reason of any loss,
damage or destruction to the Trust Property, (ii) any awards or other amounts
received in connection with the condemnation of all or a portion of the Trust
Property, (iii) any Rents following an Event of Default or (iv) any Rents paid
more than one month in advance;

                  (f)      failure to pay charges for labor or materials or
taxes or other charges that can create liens superior to the lien of this Deed
of Trust on any portion of the Trust Property unless such taxes or other charges
are being contested in accordance herewith; and

                  (g)      any security deposits collected by Borrower or any
affiliate thereof with respect to the Trust Property which are not delivered to
Lender upon a foreclosure of the Trust Property or action in lieu thereof,
except to the extent any such security deposits were applied in accordance with
the terms and conditions of any of the Leases prior to the occurrence of the
Event of Default that gave rise to such foreclosure or action in lieu thereof.

                  Notwithstanding anything to the contrary in any of the Loan
Documents (i) Lender shall not be deemed to have waived any right which Lender
may have under Section 506(a), 506(b), 1111(b) or any other provisions of the
U.S. Bankruptcy Code to file a claim for the full amount of the Debt secured by
this Deed of Trust or to require that all collateral shall continue to secure
all of the Debt owing to Lender in accordance with the Loan Documents, and (ii)
the Debt shall become fully recourse to Borrower (but not its members or other
direct or indirect constituent members or partners or any other Person) in the
event that: (A) the first full Monthly Payment Amount (as defined in the Note)
under the Note is not paid when due; (B) other than in connection with a default
under paragraph 12(a)(ii)(G) hereof, Borrower fails to maintain its status as a
Special Purpose Bankruptcy Remote Entity in accordance with the provisions of
this Deed of Trust and such failure results in the substantive consolidation of
Borrower with another Person; (C) except as otherwise permitted pursuant to the
Loan Documents, Borrower fails to obtain Lender's prior written consent to any
subordinate financing or other voluntary lien encumbering the Trust Property;
(D) except as otherwise permitted pursuant to the Loan Documents, Borrower fails
to obtain Lender's prior written consent to any assignment, transfer, or
conveyance of the Trust Property or any interest therein as and to the extent
required by this Deed of Trust; or (E) (1) a receiver (other than a receiver
appointed by Lender), liquidator or trustee of Borrower or Guarantor shall be
appointed which is not dismissed within ninety (90) days, or (2) if any petition
for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy
law, or any similar federal or state law, shall be filed by Borrower or
Guarantor, or (3) if Borrower or Guarantor files an answer consenting to, or
otherwise joining in, any involuntary petition for bankruptcy, reorganization or
arrangement pursuant to federal bankruptcy law, or any similar federal or state
law filed against it by any other Person, or is

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found pursuant to a final, unappealable order of a court of competent
jurisdiction to have solicited or caused to be solicited creditors to file any
involuntary petition for bankruptcy, reorganization or arrangement pursuant to
federal bankruptcy law, or any similar federal or state law against Borrower or
Guarantor, or (4) if Borrower or Guarantor are found, pursuant to a final
unappealable order of a court of competent jurisdiction, to have been in
collusion with creditors that initiate a bankruptcy action or proceeding against
Borrower or Guarantor.

                  58.      CASH MANAGEMENT AGREEMENT. On or before the date
hereof Borrower covenants and agrees to enter into one or more servicing account
agreements, lockbox servicing agreements and/or cash management agreements
acceptable to Lender between Borrower, Manager, Lender and, as applicable, one
or more certain financial institutions (together with any modification,
amendment, substitution or replacement thereof, hereinafter collectively
referred to as the "CASH MANAGEMENT AGREEMENT"). All Rents shall be applied as
set forth in the Cash Management Agreement and the escrows and reserves required
hereunder shall be funded as provided therein. The Borrower shall pay all costs
and expenses required under the Cash Management Agreement. Upon the occurrence
and during the continuance of an Event of Default, Lender may apply any sums
then held pursuant to the Cash Management Agreement to the payment of the Debt
in any order in its sole discretion. Until expended or applied, amounts held
pursuant to the Cash Management Agreement shall constitute additional security
for the Debt.

                  59.      MANAGEMENT OF THE TRUST PROPERTY.

                  (a)      Borrower shall maintain, or cause to be maintained,
the Management Agreement in full force and effect and timely perform all of
Borrower's obligations thereunder and enforce performance of all obligations of
the Manager, thereunder, and except as otherwise permitted by the Loan
Documents, not permit the termination or amendment of the Management Agreement
unless the prior written consent of Lender is first obtained, which consent
shall not be unreasonably withheld, conditioned or delayed. Borrower shall cause
the Manager to enter into an assignment and subordination of the management
agreement in form satisfactory to Lender (the "SUBORDINATION OF MANAGEMENT
AGREEMENT"). The Subordination of Management Agreement shall assign and
subordinate the Manager's interests in the Trust Property and all fees and other
rights of the Manager pursuant to the Management Agreement to the rights of
Lender. Upon an Event of Default, Borrower shall, at Lender's request made at
any time while such Event of Default continues, terminate, or cause the
termination of, the Management Agreement. Borrower shall not enter into any
agreement relating to the management of the Trust Property with any party
without the express written consent of Lender (which consent shall not be
unreasonably withheld to the extent that such manager is an affiliate of
Borrower); provided, however, with respect to a new manager such consent may
also be conditioned upon Borrower delivering evidence (i) in writing from the
applicable Rating Agencies to the effect that such new manager and management
agreement will not result in a downgrade, withdrawal or qualification of the
respective ratings then in effect for any Securities issued in connection with a
Securitization, and (ii) satisfactory to Lender (which shall include, at the
request of Lender, a legal non-consolidation opinion acceptable to Lender) that
the single purpose nature and bankruptcy remoteness of Borrower, its
shareholders, partners or members, as the case may be, after the engagement of
the new manager are in accordance with the requirements of Rating Agencies. If
at any time Lender consents to the appointment of a new manager, such new

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<PAGE>

manager and Borrower shall, as a condition of Lender's consent, execute an
assignment and subordination of such management agreement in the form then used
by Lender.

                  (b)      The Borrower, upon the request of Lender, shall
terminate the Manager, without penalty or fee, if at any time during the Loan
(a) the Manager shall become insolvent or a debtor in any bankruptcy or
insolvency proceeding, (b) there exists an Event of Default for which Lender has
not accepted a cure thereof or (c) the Maturity Date has occurred and the Loan
has not been repaid. At such time as the Manager may be removed pursuant to and
in accordance with the terms and provisions of the Loan Documents, a replacement
manager and management agreement acceptable to Lender and the applicable Rating
Agencies in their sole discretion shall assume management of the Property and
shall receive a property management fee not to exceed the then current market
rates.

                  60.      SERVICER. At the option of Lender, the Loan may be
serviced by a servicer and/or trustee (collectively, the "SERVICER") selected by
Lender and Lender may delegate all or any portion of its responsibilities under
this Deed of Trust and the other Loan Documents to the Servicer pursuant to a
servicing or other agreement (the "SERVICING AGREEMENT") between Lender and
Servicer. Borrower shall be responsible for any set-up fees or any other costs
and expenses relating to or arising under the Servicing Agreement; provided,
however, that such fees and expenses do not exceed one (1) basis point per
annum. Lender agrees that the Servicing Agreement shall require the Servicer to
act within the specified time periods set forth in the Loan Documents,
including, but not limited to, in providing consents or approvals as required
under the terms thereof.

                  61.      COMPONENT NOTES.. Lender, without in any way limiting
Lender's other rights hereunder, in its sole and absolute discretion, shall have
the right, at no cost or expense to Borrower, at any time prior to or in
connection with a Securitization to require Borrower to execute and deliver
"component" notes (including senior and junior notes), which notes may be paid
in such order of priority as may be designated by Lender, provided that (i) the
aggregate principal amount of such "component" notes shall equal the outstanding
principal balance of the Loan immediately prior to the creation of such
"component" notes, (ii) the weighted average interest rate of all such
"component" notes shall on the date created equal the interest rate which was
applicable to the Loan immediately prior to the creation of such "component"
notes, (iii) the debt service payments on all such "component" notes shall on
the date created equal the debt service payment which was due under the Loan
immediately prior to the creation of such component notes, (iv) the maturity
date, the amortization schedule and the other terms and provisions of each of
the "component" notes shall be identical in substance and substantially similar
in form to the Note and the other Loan Documents and (v) the original note that
is replaced by such component notes shall be delivered to Borrower. Borrower
shall cooperate with all reasonable requests of Lender in order to establish the
"component" notes and shall execute and deliver such documents in compliance
with this paragraph 61 as shall reasonably be required by Lender and any Rating
Agency in connection therewith, all in form and substance reasonably
satisfactory to Lender and satisfactory to any Rating Agency, including, without
limitation, the severance of security documents if requested. In the event
Borrower fails to execute and deliver such documents to Lender within ten (10)
Business Days following notice of such request by Lender, Borrower hereby
absolutely and irrevocably appoints Lender as its true and lawful attorney,
coupled with an interest, in its name and stead to make and execute all

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<PAGE>

documents reasonably necessary to effect such transactions, Borrower ratifying
all that such attorney shall do by virtue thereof. Upon the execution of all
such component notes created under this paragraph 61, Lender shall return or
cause to be returned to Borrower the original note that was fully substituted
with such component notes.

                  It shall be an Event of Default under this Deed of Trust, the
Note and the other Loan Documents if Borrower fails to comply with any of the
terms, covenants or conditions of this Section 61 after expiration of ten (10)
Business Days after notice thereof.

                  62.      MEZZANINE LOAN OPTION. Lender shall have the right,
at no cost or expense to Borrower, at any time to divide the Loan into two parts
(the "MEZZANINE OPTION"): a mortgage loan (the "MORTGAGE LOAN") and a mezzanine
loan (the "MEZZANINE LOAN"). The principal amount of the Mortgage Loan plus the
principal amount of the Mezzanine Loan shall equal the outstanding principal
balance of the Loan immediately prior to the creation of the Mortgage Loan and
the Mezzanine Loan. In effectuating the foregoing, Lender or its designee (in
its capacity as the lender under the Mezzanine Loan, the "MEZZANINE LENDER")
will make a loan to the equity owner(s) of Borrower ("MEZZANINE BORROWER");
Mezzanine Borrower will contribute the amount of the Mezzanine Loan to Borrower
(in its capacity as Borrower under the Mortgage Loan, "MORTGAGE BORROWER") and
Mortgage Borrower will apply the contribution to pay down the Loan to its
Mortgage Loan amount, without prepayment penalty or fee. The Mortgage Loan and
the Mezzanine Loan will be on the same terms and subject to the same conditions
set forth in the Loan Documents except as follows:

                  Lender (in its capacity as the lender under the Mortgage Loan,
the "MORTGAGE LENDER") shall have the right to establish different interest
rates and debt service payments for the Mortgage Loan and the Mezzanine Loan and
to require the payment of the Mortgage Loan and the Mezzanine Loan in such order
of priority as may be designated by Lender; provided, that (i) the total loan
amounts for the Mortgage Loan and the Mezzanine Loan shall equal the amount of
the Loan immediately prior to the creation of the Mortgage Loan and the
Mezzanine Loan, (ii) the weighted average interest rate of the Mortgage Loan and
the Mezzanine Loan shall on the date created equal the interest rate which was
applicable to the Loan immediately prior to creation of a Mortgage Loan and a
Mezzanine Loan, (iii) the debt service payments on the Mortgage Loan note and
the Mezzanine Loan note shall on the date created equal the debt service payment
which was due under the Loan immediately prior to creation of a Mortgage Loan
and a Mezzanine Loan, and (iv) the note under the Mortgage Loan and the note
under the Mezzanine Loan shall have the same term and amortization schedule as
the Loan prior to the creation of the Mortgage Loan and the Mezzanine Loan.

                  Mezzanine Borrower shall be a special purpose, bankruptcy
remote entity pursuant to applicable Rating Agency criteria and shall own
directly or indirectly one hundred percent (100%) of Mortgage Borrower. The
security for the Mezzanine Loan shall be a pledge of one hundred percent (100%)
of Mezzanine Borrower's direct and indirect ownership interests in Mortgage
Borrower.

                  Mezzanine Borrower and Mortgage Borrower shall cooperate with
all reasonable requests of Lender in order to convert the Loan into a Mortgage
Loan and a Mezzanine Loan and shall execute and deliver such documents in
compliance with this paragraph 62 as shall

                                      -77-

<PAGE>

reasonably be required by Lender and any Rating Agency in connection therewith,
including, without limitation, the delivery of non-consolidation opinions and
the modification of organizational documents and loan documents. In the event
Mortgage Borrower and/or Mezzanine Borrower fail to execute and deliver such
documents to Lender within ten (10) Business Days following such request by
Lender, Mortgage Borrower and/or Mezzanine Borrower, as applicable, hereby
absolutely and irrevocably appoint Lender as their true and lawful attorney,
coupled with an interest, in their name and stead to make and execute all
documents reasonably necessary to effect such transactions, Mortgage Borrower
and/or Mezzanine Borrower, as applicable, ratifying all that such attorney shall
do by virtue thereof.

                  It shall be an Event of Default under this Deed of Trust, the
Note and the other Loan Documents if Borrower fails to comply with any of the
terms, covenants or conditions of this Section 62 after expiration of thirty
(30) days after notice thereof.

                  63.      MISCELLANEOUS.

                  (a)      Any consent or approval by Lender in any single
instance shall not be deemed or construed to be Lender's consent or approval in
any like matter arising at a subsequent date, and the failure of Lender to
promptly exercise any right, power, remedy, consent or approval provided herein
or at law or in equity shall not constitute or be construed as a waiver of the
same nor shall Lender be estopped from exercising such right, power, remedy,
consent or approval at a later date. Any consent or approval requested of and
granted by Lender pursuant hereto shall be narrowly construed to be applicable
only to Borrower and the matter identified in such consent or approval and no
third party shall claim any benefit by reason thereof, and any such consent or
approval shall not be deemed to constitute Lender a venturer or partner with
Borrower nor shall privity of contract be presumed to have been established with
any such third party. If Lender deems it to be in its best interest to retain
assistance of persons, firms or corporations (including, without limitation,
attorneys, title insurance companies, appraisers, engineers and surveyors) with
respect to a request for consent or approval, Borrower shall reimburse Lender
for all costs reasonably incurred in connection with the employment of such
persons, firms or corporations.

                  (b)      Borrower covenants and agrees that during the Term,
unless Lender shall have previously consented in writing, (a) Borrower will take
no action that would cause it to become an "employee benefit plan" as defined in
29 C.F.R. Section 2510.3-101, or "assets of a governmental plan" subject to
regulation under the state statutes, and (b) Borrower will not sell, assign or
transfer the Trust Property, or any portion thereof or interest therein, to any
transferee that does not execute and deliver to Lender its written assumption of
the obligations of this covenant. Borrower further covenants and agrees to
protect, defend, indemnify and hold Lender harmless from and against all loss,
cost, damage and expense (including without limitation, all attorneys' fees and
excise taxes, costs of correcting any prohibited transaction or obtaining an
appropriate exemption) that Lender may incur as a result of Borrower's breach of
this covenant. This covenant and indemnity shall survive the extinguishment of
the lien of this Deed of Trust by foreclosure or action in lieu thereof;
furthermore, the foregoing indemnity shall supersede any limitations on
Borrower's liability under any of the Loan Documents.

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<PAGE>

                  (c)      The Loan Documents contain the entire agreement
between Borrower and Lender relating to or connected with the Loan. Any other
agreements relating to or connected with the Loan not expressly set forth in the
Loan Documents are null and void and superseded in their entirety by the
provisions of the Loan Documents.

                  (d)      Borrower hereby covenants and agrees not to commit,
or to knowingly permit or suffer to exist any act, omission or circumstance
affording any right of forfeiture. In furtherance thereof, Borrower hereby
indemnifies Lender and agrees to defend and hold Lender harmless from and
against any loss, damage or injury by reason of the breach of the covenants and
agreements or the representations and warranties set forth in this paragraph.
Without limiting the generality of the foregoing, the filing of formal charges
or the commencement of proceedings which are not promptly dismissed against
Borrower or all or any part of the Trust Property under any federal or state law
for which forfeiture of the Trust Property or any part thereof or of any monies
paid in performance of Borrower's obligations under the Loan Documents is a
likely result, shall, at the election of Lender, constitute an Event of Default
hereunder without notice or opportunity to cure.

                  (e)      Borrower acknowledges that, with respect to the Loan,
Borrower is relying solely on its own judgment and advisors in entering into the
Loan without relying in any manner on any statements, representations or
recommendations of Lender or any parent, subsidiary or affiliate of Lender.
Borrower acknowledges that Lender engages in the business of real estate
financings and other real estate transactions and investments which may be
viewed as adverse to or competitive with the business of the Borrower or its
Affiliates. Borrower acknowledges that it is represented by competent counsel
and has consulted counsel before executing the Loan Documents.

                  (f)      Borrower covenants and agrees to pay Lender upon
receipt of written notice from Lender, all reasonable costs and expenses
(including reasonable attorneys' fees and disbursements) incurred by Lender in
connection with (i) the preparation, negotiation, execution and delivery of this
Deed of Trust and the other Loan Documents; (ii) Borrower's performance of and
compliance with Borrower's respective agreements and covenants contained in this
Deed of Trust and the other Loan Documents on its part to be performed or
complied with after the date hereof; (iii) Lender's performance and compliance
with all agreements and conditions contained in this Deed of Trust and the other
Loan Documents on its part to be performed or complied with after the date
hereof; (iv) the negotiation, preparation, execution and delivery of any
consents, amendments, waivers or other modifications to this Deed of Trust and
the other Loan Documents; and (v) the filing and recording fees and expenses,
title insurance fees and expenses, and other similar expenses incurred in
creating and perfecting the lien in favor of Lender pursuant to this Deed of
Trust and the other Loan Documents.

                                     PART II

                            STATE SPECIFIC PROVISIONS

                  64.      PRINCIPLES OF CONSTRUCTION. In the event of any
inconsistencies between the terms and provisions of this Part II Deed of Trust
and Part I of this Deed of Trust, the terms and provisions of this Part II shall
govern and control.

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<PAGE>

                  65.      ADDITIONAL REMEDIES PROVISIONS. Lender shall have the
following remedies under this Deed of Trust, in addition to any other remedies
stated in this Deed of Trust (all of which are cumulative and nonexclusive):

                  (a)      Judicial Action. Bring an action in any court of
competent jurisdiction to foreclose this Deed of Trust or to obtain specific
performance of any covenant or agreement contained herein or in the other Loan
Documents.

                  (b)      Foreclosure By Power of Sale.

                  (i)      Should Lender elect to foreclose by exercise of the
         power of sale herein contained, Lender shall deliver to Trustee a
         written declaration of default and demand for sale, and shall deposit
         with Trustee this Deed of Trust and the Note and such receipts and
         evidence of expenditures made and secured hereby as Trustee may
         require.

                  (ii)     Upon receipt of notice from Lender, Trustee shall
         cause to be recorded, published and delivered to Borrower such notice
         of default and election to sell as is then required by law. Trustee
         shall, without demand on Borrower, after lapse of such time as may then
         be required by law and after recordation of such notice of default and
         after notice of sale having been given as required by law, sell the
         Trust Property at the time and place of sale fixed by it in said notice
         of sale, either as a whole, or in separate lots or parcels or items and
         in such order as Lender may direct Trustee so to do, at public auction
         to the highest bidder for cash in lawful money of the United States
         payable at the time of sale. Trustee shall deliver to such purchaser or
         purchasers thereof its good and sufficient deed or deeds conveying the
         property so sold, but without any covenant or warranty, express or
         implied. The recitals in such deed of any matter or fact shall be prima
         facie evidence of the truthfulness thereof. Any person, including
         without limitation Borrower, Trustee or Lender, may purchase at such
         sale, and Borrower hereby covenants to warrant and defend the title of
         such purchaser or purchasers.

                  (iii)    Subject to applicable law, Trustee may postpone the
         sale of all or any portion of the Property by public announcement at
         the time and place of sale, and from time to time thereafter may
         postpone such sale by public announcement or subsequently noticed sale,
         and without further notice make such sale at the time fixed by the last
         postponement, or may, in its discretion, give a new notice of sale.

                  (c)      Unified Sale of Real Property, Fixtures and Personal
Property. Notwithstanding any other provisions of this Deed of Trust, Lender may
elect to proceed against any or all of the real property, personal property and
fixtures constituting the Trust Property in any manner permitted under UCC
Section 9501(4)(a) or any successor statute thereof; and if the Lender elects to
proceed in the manner permitted under UCC Section 9501 (4)(a)(ii) or any
successor statute thereof, Lender may further elect to proceed by judicial or
nonjudicial foreclosure with respect to all or any of the real property,
personal property and fixtures covered hereby, as designated by Lender, and
Lender or the Trustee (as applicable) are hereby authorized and empowered to
conduct any such sale of any real property, personal property and fixtures in
accordance with the procedures applicable to real property. Where the Trust
Property consists of real property and personal property, any reinstatement of
the Debt secured hereby, following an

                                      -80-

<PAGE>

Event of Default and an election by the Lender to accelerate the maturity of
said obligation, which is made by Borrower or any other person or entity
permitted to exercise the right of reinstatement under Section 2924c of the
California Civil Code or any successor statute, shall not invalidate, rescind or
otherwise affect any sale, disposition or other proceeding held or conducted
with respect to any personal property or fixtures prior to such reinstatement.

                  (d)      Receiver. Lender shall be entitled, as a matter of
absolute right and without regard to the value of any security for the Debt or
the solvency of any person liable therefor, to the appointment of a receiver for
the Trust Property upon ex parte application to any court of competent
jurisdiction. Borrower waives any right to any hearing or notice of hearing
prior to the appointment of a receiver. Such receiver and his agents shall be
empowered (i) to take possession of the Trust Property and any businesses
conducted by Borrower or any other person thereon and any business assets used
in connection therewith and, if the receiver deems it appropriate, to operate
the same, (ii) to exclude Borrower and Borrower's agents, servants, and
employees from the Trust Property, (iii) to collect the rents, issues, profits,
and income therefrom, (iv) to complete any construction which may be in
progress, (v) to do such maintenance and make such repairs and alterations as
the receiver deems necessary, (vi) to use all stores of materials, supplies, and
maintenance equipment on the Trust Property and replace such items at the
expense of the receivership estate, (vii) to pay all taxes and assessments
against the Trust Property, all premiums for insurance thereon, all utility and
other operating expenses, and all sums due under any prior or subsequent
encumbrance, and (viii) generally to do anything which Borrower could legally do
if Borrower were in possession of the Trust Property. All expenses incurred by
the receiver or his agents shall constitute a part of the Debt. Any revenues
collected by the receiver shall be applied first to the expenses of the
receivership, including attorneys' fees incurred by the receiver and by Lender,
together with interest thereon at the Default Rate from the date incurred until
repaid, and the balance shall be applied toward the Debt or in such other manner
as the court may direct. Unless sooner terminated with the express consent of
Lender or by court order, any such receivership will continue until the Debt has
been discharged in full, or until title to the Trust Property has passed after
foreclosure sale and all applicable periods of redemption have expired. Lender's
rights hereunder include its rights under California Code of Civil Procedure
Section 564, as such section may be amended from time to time.

                  (e)      UCC. Exercise any or all rights and remedies granted
to a secured party upon default under the UCC, in such order and in such manner
as Lender, in its sole discretion but subject to applicable law, may determine,
including, without limiting the generality of the foregoing: (i) the right to
take possession of the personal property or any part thereof, and to take such
other measures as Lender may deem necessary for the care, protection and
preservation of the personal property, and (ii) the right to require Borrower at
its expense to assemble the personal property and make it available to Lender at
a convenient place acceptable to Lender. Any notice of sale, disposition or
other intended action by Lender with respect to the personal property sent to
Borrower in accordance with the provisions hereof at least ten (10) Business
Days prior to such action, shall constitute commercially reasonable notice to
Borrower.

                  (f)      Action for Breach of Contract. In accordance with
California Code of Civil Procedure Section 736, as such section may be amended
from time to time, Lender may bring an action for breach of contract against
Borrower for breach of any "environmental

                                      -81-

<PAGE>

provision" (as such term is defined in such section) made by Borrower herein or
in any other Loan Document, for the recovery of damages and/or for the
enforcement of the environmental provision.

                  (g)      Waiver of Security. In accordance with California
Code of Civil Procedure Section 726.5, as such Section may be amended from time
to time, Lender may waive the security of this Deed of Trust as to any parcel of
the Trust Property that is "environmentally impaired" or is an "affected parcel"
(as such terms are defined in such Section), and as to any personal property
attached to such parcel, and thereafter may exercise against Borrower, to the
extent permitted by such Section 726.5 and subject to paragraph 57 hereof, the
rights and remedies of an unsecured creditor, including reduction of Lender's
claim against Borrower to judgment, and any other rights and remedies permitted
by law. In the event the Lender elects, in accordance with California Code of
Civil Procedure Section 726.5, to waive all or part of the security of this Deed
of Trust and proceed against Borrower on an unsecured basis, the valuation of
the real property, the determination of the environmentally impaired status of
such security and any cause of action for a money judgment shall, at the request
of Lender, be referred to a referee in accordance with California Code of Civil
Procedure Sections 638 et seq. Such referee shall be an independent and
unaffiliated M.A.I, appraiser selected by Lender and approved by Borrower, which
approval shall not be unreasonably withheld or delayed. The decision of such
referee shall be binding upon both Borrower and Lender, and judgment upon the
award rendered by such referee shall be entered in the court in which such
proceeding was commenced in accordance with California Code of Civil Procedure
Sections 644 and 645. Borrower shall pay all reasonable costs and expenses
incurred by Lender in connection with any proceeding under California Code of
Civil Procedure Section 726.5, as such section may be amended from time to
time.

                  (h)      Other. Exercise all other rights, remedies and
recourses granted under the Loan Documents or otherwise available at law or in
equity.

                  (i)      Separate Sales. The Trust Property may be sold in one
or more parcels and in such manner and order as Lender, in its sole discretion,
may direct Trustee so to do. A sale of less than the whole of the Trust Property
or any defective or irregular sale made hereunder shall not exhaust the power of
sale provided for herein, and subsequent sales may be made hereunder until all
obligations secured hereby have been satisfied, or the entire Trust Property
sold, without defect or irregularity.

                  (j)      Credit Bids. At any sale or disposition of any or all
of the Trust Property held or made under the power of sale granted in this Deed
of Trust or in connection with judicial proceedings, or by virtue of a judgment
and decree of foreclosure and sale, if Lender is the purchaser at such sale or
disposition Lender shall have the right to offset its bid at such sale to the
extent of the Debt, including the portion of the Debt attributable to the
expenses of sale, costs of any action and other sums for which Borrower is
obligated to pay or reimburse Lender or Trustee under this Deed of Trust.

                  66.      DEED OF TRUST NOT TO SECURE ENVIRONMENTAL COVENANTS,
OBLIGATIONS, AND INDEMNITIES OR GUARANTY OBLIGATIONS. Notwithstanding anything
in this Deed of Trust to

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the contrary, this Deed of Trust is not intended to, and by the express
provisions hereof, does not secure (a) any environmental (i) covenant, (ii)
obligation or (iii) indemnity of Borrower made or provided herein, or in the
Environmental and Hazardous Substance Indemnification Agreement executed
simultaneously herewith, or (b) the obligations of any (i) Guarantor of any Debt
or (ii) third party indemnitor under the Environmental and Hazardous Substance
Indemnification Agreement or under any other indemnity.

                  67.      ADDITIONAL WAIVERS.

                  (a)      Borrower has read and hereby approves the Note, this
Deed of Trust, the other Loan Documents and all other agreements and documents
relating thereto. Borrower acknowledges that it has been represented by counsel
of its choice to review this Deed of Trust, the Note, the other Loan Documents
and all other documents relating thereto and said counsel has explained and
Borrower understands the provisions thereof, or that Borrower has voluntarily
declined to retain such counsel.

                  (b)      Borrower hereby expressly waives diligence, demand,
presentment, protest and notice of every kind and nature whatsoever (unless as
otherwise required under this Deed of Trust or the other Loan Documents) and
waives any right to require Lender to enforce any remedy against any Guarantor,
endorser or other person whatsoever prior to the exercise of its rights and
remedies hereunder or otherwise. Borrower waives any right to require Lender to:
(i) proceed or exhaust any collateral security given or held by Lender in
connection with the Debt; (ii) give notice of the terms, time and place of any
public or private sale of any real or personal property security for the Debt or
other guaranty of the Debt; or (iii) pursue any other remedy in Lender's power
whatsoever.

                  (c)      Until all Debt shall have been paid in full,
Borrower: (i) shall not have any right of subrogation to any of the rights of
Lender against any Guarantor, maker or endorser; (ii) waives any right to
enforce any remedy which Lender now has or may hereafter have against any other
Guarantor, maker or endorser; and (iii) waives any benefit of, and any other
right to participate in, any collateral security for the Debt or any guaranty of
the Debt now or hereafter held by Lender.

                         [NO FURTHER TEXT ON THIS PAGE]

                                      -83-

<PAGE>

                  IN WITNESS WHEREOF, Borrower has executed this instrument the
day and year first above written.

                           BORROWER:

                           LIBRARY SQUARE ASSOCIATES, LLC, a Delaware limited
                              liability company

                                   By: Bunker Hill Senior Mezzanine, LLC,
                                       a Delaware limited liability company,
                                       its sole member

                                       By: Bunker Hill Junior Mezzanine, LLC,
                                           a Delaware limited liability company,
                                           its sole member

                                           By: New BHE, LLC,
                                               a Delaware limited liability
                                               company,
                                               its sole member

                                           By: Maguire Properties, L.P.,
                                               a Maryland limited partnership,
                                               its sole member

                                               By: Maguire Properties, Inc.,
                                                   a Maryland corporation,
                                                   its sole general partner

                                                   By: /s/ Richard I. Gilchrist
                                                      --------------------------
                                                      Name: Richard I. Gilchrist
                                                      Title: President

<PAGE>

STATE OF CALIFORNIA, County of Los Angeles ss:

                  On June 17, 2003, before me, lisa M. Long, a notary public for
said state, personally appeared Richard Gilchrist personally known to me to be
the person whose name is subscribed to the within instrument and acknowledged to
me that he executed the same in his authorized capacity, and that by his
signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

                  Witness my hand and official seal.

Signature: /s/ Lisa M. Long
           ----------------
My commission expires: 8.16.05

[Notary Seal]

<PAGE>

                                    EXHIBIT B

                                    RESERVED

                                    EXH. B-l

<PAGE>

                                    EXHIBIT C

                                REQUIRED REPAIRS

                                    EXH. C-l

<PAGE>

                                    EXHIBIT D

                    OUTSTANDING TENANT ALLOWANCE OBLIGATIONS

                                     EXH. D-I

<PAGE>

                            CASH MANAGEMENT AGREEMENT
                               (this "AGREEMENT").
                            dated as of June 26, 2003

                                     among

                         LIBRARY SQUARE ASSOCIATES, LLC
                        555 West Fifth Street, Suite 5000
                          Los Angeles, California 90013
                                  ("BORROWER").

                            MAGUIRE PROPERTIES, L.P.
                        555 West Fifth Street, Suite 5000
                          Los Angeles, California 90013
                                 (the "MANAGER")

                                      and

                   GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
                               600 Steamboat Road
                          Greenwich, Connecticut 06830
                        (together with its successors and
                             assigns, the "LENDER")

                                      and

                       WACHOVIA BANK, NATIONAL ASSOCIATION
                            8739 Research Drive, URP4
                      Charlotte, North Carolina 28288-1075
                              (the "DEPOSIT BANK")

<PAGE>

                  WHEREAS, pursuant to that certain Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Fixture Filing, dated as of the date
hereof (the "DEED OF TRUST"). made by Borrower, as trustor for the benefit of
Lender, as beneficiary, the Lender has provided financing (the "LOAN") to the
Borrower secured by the property owned by the Borrower and described in the Deed
of Trust (collectively, the "PROPERTY"); and

                  WHEREAS, the Lender shall deliver to the bank (the "CLEARING
BANK") maintaining the operating account of the Borrower (the "CLEARING
ACCOUNT") a Clearing Bank Instruction Letter in the form attached as Exhibit A
hereto (together with any modifications, amendments or replacements thereof, the
"INSTRUCTION LETTER"), which provides that all Rents (as defined in the Deed of
Trust) be deposited in such Clearing Account upon delivery of the Instruction
Letter, and swept periodically into the accounts established hereunder.

                  NOW THEREFORE, in consideration of the mutual promises
contained herein and for other good and valuable consideration the sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1.        DEFINED TERMS.

                  (a)      As used herein the following capitalized terms shall
have the respective meanings set forth below:

                  "ACCOUNT PROCEEDS" shall mean any and all Rents and other
revenue in connection with the Property that is deposited by any Clearing Bank,
the Borrower, the Manager or otherwise into the Cash Collateral Account from
time to time.

                  "BORROWER REMAINDER ACCOUNT" shall mean the account of
Borrower to which monies in the Borrower Remainder Sub-account are allocated in
accordance with the terms hereof.

                  "BUSINESS DAY" shall mean any day other than a Saturday,
Sunday or any day on which commercial banks in New York, New York or the City in
which the Deposit Bank is located are required or permitted by law to be closed.

                  "CASH COLLATERAL ACCOUNT" shall have the meaning ascribed to
such term in Section 2 hereof.

                  "CERTIFICATES" means the securities issued in connection with
a Securitization of the Loan.

                  "CLEARING ACCOUNT" shall have the meaning given such term in
the Recitals.

                  "CLEARING BANK" shall have the meaning given such term in the
Recitals.

                  "COLLATERAL" shall mean each of the items pledged by Borrower
in Section 6(c) hereof.

<PAGE>

                  "COLLECTION PERIOD" with respect to any Payment Date, shall
mean the period of days from the Payment Date occurring during the month
immediately preceding the Payment Date to the day immediately preceding such
Payment Date. With respect to the first Payment Date, the Collection Period
shall commence on and include the date hereof and end on and include the day
immediately preceding such first Payment Date.

                  "DEED OF TRUST" shall have the meaning given such term in the
Recitals.

                  "DEPOSIT BANK" shall mean Wachovia Bank, National Association
or such other bank or banks selected by the Lender to maintain the Cash
Collateral Account.

                  "ELIGIBLE ACCOUNT" either (i) an account or accounts
maintained with an Eligible Bank or (ii) a Trust Account. Eligible Accounts
shall bear interest.

                  "ELIGIBLE BANK" shall mean a bank that (i) satisfies the
Rating Criteria and (ii) insures deposits held by such bank through the Federal
Deposit Insurance Corporation.

                  "INSTRUCTION LETTER" shall have the meaning ascribed to such
term in the Recitals.

                  "LOAN" shall have the meaning ascribed to such term in the
Recitals.

                  "LOAN DOCUMENTS" shall have the meaning set forth for such
term in the Deed of Trust.

                  "LOAN SATISFACTION EVENT" shall mean the satisfaction in full
of the Obligations.

                  "LOAN SUB-ACCOUNTS" shall have the meaning ascribed to such
term in Section 2(c).

                  "MONTHLY PAYMENT AMOUNT" shall have the meaning given to such
term in the Note.

                  "NOTE" shall mean that certain Deed of Trust Note of even date
herewith, made by the Borrower in favor of Lender, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

                  "OBLIGATIONS" shall mean any and all debt, liabilities and
obligations of the Borrower to the Lender pursuant to or in connection with the
Loan, whether now or hereafter existing, including without limiting the
generality of the foregoing, the indebtedness evidenced by the Note, all
interest accruing thereon, and any and all debt, liabilities and obligations of
the Borrower under the Loan Documents.

                  "OPERATING EXPENSES" shall mean, collectively, Cash Expenses
(as defined in the Note) and Extraordinary Expenses (as defined in the Note).

                  "PAYMENT DATE" shall have the meaning given to such term in
the Note.

                                      -2-
<PAGE>

                  "PERMITTED INVESTMENTS" shall have the meaning given to such
term in the Deed of Trust.

                  "PERSON" shall mean any individual, sole proprietorship,
partnership, limited liability partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
entity, party or government (whether territorial, national, federal, state,
county, city, municipal or otherwise, including, without limitation, any
instrumentality, division, agency, body or department thereof).

                  "PROPERTY" shall have the meaning ascribed to such term in the
Recitals.

                  "RATING AGENCIES" shall mean (i) any nationally-recognized
statistical rating organizations that provide a rating on any Certificates on
the date of issuance of the Certificates or (ii) prior to the issuance of the
Certificates, Moody's (as defined in the Deed of Trust), S&P (as defined in the
Deed of Trust) and any other nationally-recognized statistical rating
organizations that have been designated by the Lender in its sole discretion.

                  "RATING CRITERIA" with respect to any Person, shall mean that
(i) the short-term unsecured debt obligations of such Person are rated at least
"A-l" by S&P, "P-l" by Moody's and, if rated by another Rating Agency, are rated
in an equivalent category by such other Rating Agency, if deposits are held by
such person for a period of less than 30 days, or (ii) the long-term unsecured
debt obligations of such Person are rated at least "AA-" by S&P, "Aa2" by
Moody's and, if rated by another Rating Agency, are rated in an equivalent
category by such other Rating Agency, if deposits are held by such person for a
period of 30 days or more.

                  "RECONCILIATION DATE" shall mean, as applicable, January 31st,
April 30th, July 31st, and October 31st of each year that the Loan remains
outstanding.

                  "RENTS" shall have the meaning ascribed to such term in the
Deed of Trust.

                  "SECURITIZATION" shall have the meaning given to such term in
the Deed of Trust.

                  "SERVICER" shall mean a servicer or account administrator of
the Lender designated by and acting for the benefit of the Lender.

                  "TRUST ACCOUNT" shall mean a segregated trust account
maintained by a corporate trust department of a federal depository institution
or a state chartered depository institution subject to regulations regarding
fiduciary funds on deposit similar to Title 12 of the Code of Federal
Regulations Section 9.10(B) which has corporate trust powers and is acting in
its fiduciary capacity.

                  (b)      The meanings given to capitalized terms defined
herein shall be equally applicable in both singular and plural forms of such
terms.

                  (c)      Capitalized terms used and not defined herein shall
have the respective meanings given to such terms in the Deed of Trust.

                                      -3-
<PAGE>

SECTION 2.        ESTABLISHMENT OF THE CASH COLLATERAL ACCOUNT.

                  (a)      The Lender has established and will maintain while
the Loan is outstanding a cash collateral account (which account shall be an
Eligible Account or may be a book-entry sub-account of an Eligible Account) at
the Deposit Bank (the "CASH COLLATERAL ACCOUNT") which shall be entitled
"Greenwich Capital Financial Products, Inc. as Beneficiary of Library Square
Associates, LLC Cash Collateral Account". In connection with a Securitization,
the Lender shall have the right to cause Deposit Bank to entitle the Cash
Collateral Account with such other designation as the Lender may select in its
reasonable discretion to reflect such assignment or transfer. The Lender shall,
or shall cause the Servicer to, cause the Deposit Bank to deposit into the Cash
Collateral Account, all Rents and other amounts transferred to the Deposit Bank
from the Clearing Bank.

                  (b)      The Cash Collateral Account shall be an interest
bearing Eligible Account. The interest rate with respect to funds held in the
Cash Collateral Account shall be the rate for such deposits as is customarily
paid by the Deposit Bank. All interest income or other earnings on funds, if
any, remaining in the Cash Collateral Account shall be for the benefit of the
Borrower and credited to, and become a part of, the Cash Collateral Account. The
Cash Collateral Account shall be assigned the federal tax identification number
of the Borrower, which number is 95-4665332. Borrower shall provide Lender or
the Deposit Bank, at any time upon request of Lender, with a Form W-8 or W-9 to
evidence Borrower is not subject to any back-up withholding under the United
States Internal Revenue Code. Prior to application in accordance with the terms
hereof, all amounts in the Cash Collateral Account shall remain an asset of
Borrower, subject to the lien and security interest granted Lender hereunder,
and subject to all of the terms and conditions of this Agreement and the other
Loan Documents.

                  (c)      The following sub-accounts (collectively, the "LOAN
SUB-ACCOUNTS") of the Cash Collateral Account shall be maintained on a
ledger-entry basis:

                           (i)      "US Bancorp TI/LC Escrow Sub-account";

                           (ii)     "Deferred Maintenance Escrow Sub-account";

                           (iii)    "Outstanding Tenant Allowance Escrow
                                    Sub-account";

                           (iv)     "Outstanding Latham & Watkins Obligations
                                    Escrow Sub-account";

                           (v)      "Tax and Insurance Impound Fund
                                    Sub-account";

                           (vi)     "Monthly Debt Service Sub-account";

                           (vii)    "Replacement/Leasing Escrow Sub-account";

                           (viii)   "Operating Expense Sub-account";

                           (ix)     "Borrower Remainder Sub-account";

                                      -4-
<PAGE>

                           (x)      "Junior Management Fee Subaccount";

                           (xi)     "Casualty and Condemnation Proceeds
                                    Sub-account"; and

                           (xii)    "Extraordinary Receipts Sub-account".

                  Amounts allocated to the Loan Sub-accounts shall be disbursed
in accordance with the terms of this Agreement and the Deed of Trust.

                  (d)      (i)      The Lender shall deliver one or more
executed Instruction Letters to the Clearing Bank. If the Clearing Bank shall
request any changes, modifications or supplements to any Instruction Letter to
conform to the Clearing Bank's customary practice or requirements, as the same
may change from time to time, then if such changes, modifications or supplements
are reasonably acceptable to Lender, Borrower shall execute and deliver to
Lender such instruments as the Clearing Bank shall reasonably request to
effectuate such modifications or changes. In the event the Borrower fails to
execute such Instruction Letter as provided above within three (3) Business Days
after receipt of written request for such execution, Borrower hereby appoints
the Lender as its attorney-in-fact with full authority to enter into replacement
Instruction Letter(s) and to execute on behalf of the Borrower any new modified
Instruction Letter acceptable to the proposed Clearing Bank. All costs and
expenses incurred by the Lender to negotiate and execute any modified
Instruction Letter shall be paid by the Borrower.

                           (ii)     If the Clearing Bank fails to perform its
obligations as set forth in the Instruction Letter, then, upon the request of
Lender, within ten (10) Business Days, the Borrower will establish a new
Eligible Account (which shall become the Clearing Account) at a bank selected by
the Borrower and reasonably acceptable to Lender and shall cause all funds in
the existing Clearing Account to be transferred to the new Clearing Account and
any future Rents from the Property to be deposited in such new Clearing Account.

                           (iii)    In the event that Borrower requests that a
new Clearing Account be established (which new Clearing Account shall be an
Eligible Account), and Lender consents to such change, which consent shall not
be unreasonably withheld or delayed, Borrower shall, prior to the establishment
of such account, execute a replacement Instruction Letter to cover the new
account, which replacement Instruction Letter shall be in the form of the
Instruction Letter annexed hereto as Exhibit A with such changes thereto as may
be requested by such new Clearing Bank in order to conform such Instruction
Letter with such new bank's customary practice. The existing Clearing Account
shall remain in effect until Borrower has executed a replacement Instruction
Letter for the new Clearing Account and the new Clearing Bank has acknowledged
receipt of such replacement Instruction Letter and has agreed to comply with the
instructions contained therein by executing an Acknowledgment in the form of
Schedule I attached to Exhibit A attached hereto, and Borrower may rescind its
request for a new Clearing Account in the event Borrower does not approve of any
changes to the form of the Instruction Letter annexed hereto as Exhibit A
requested by such new Clearing Bank.

                  (e)      The Lender or the Servicer shall, at the direction of
Borrower, direct the Deposit Bank to invest amounts allocated to the Cash
Collateral Account in Permitted Investments selected by the Borrower. All
earnings on such Permitted Investments on funds

                                      -5-
<PAGE>

allocated to the Cash Collateral Account shall be (a) added to and become part
of the Cash Collateral Account, (b) taxed as income of the Borrower, (c) for the
benefit of the Borrower, subject to Lender's rights pursuant to this Agreement,
and (d) remitted to Borrower jointly once per calendar quarter, provided that no
Event of Default has occurred and is continuing, to the extent not already
disbursed or applied in accordance with this Agreement. Borrower shall have
liability for any loss in investments of funds that are invested in Permitted
Investments and no such loss or liability shall affect Borrower's obligations to
make all payments and deposits required to be made by Borrower under the Loan
Documents. Notwithstanding anything to the contrary in this Agreement or in any
of the other Loan Documents, upon the occurrence and during the continuance of
an Event of Default, Borrower shall have no right to select Permitted
Investments.

                  (f)      It is the intention of the parties hereto that the
entire amounts deposited in the Cash Collateral Account (or as much thereof as
the Lender may reasonably arrange to invest) may be invested in Permitted
Investments selected by the Borrower, and, in such event, that the Cash
Collateral Account shall be a so-called "zero balance" account (unless it is a
Trust Account). All funds in the Cash Collateral Account that are invested in a
Permitted Investment are deemed to be held in the Cash Collateral Account for
all purposes of the Deed of Trust and the other Loan Documents.

                  (g)      In order to further secure the performance by the
Borrower of the Obligations and as a material inducement for the Lender to make
the Loan in accordance with the terms of the Loan Documents, the Borrower hereby
(i) requests that the Cash Collateral Account be established on its behalf at
the Deposit Bank in the name set forth above and (ii) acknowledges that (A) the
Cash Collateral Account will be subject to the sole dominion, control and
discretion of the Lender (which may be exercised through the Servicer), subject
to the terms, covenants and conditions of this Agreement and the Deed of Trust,
(B) the Lender shall have the sole right to make withdrawals or transfers of
funds from the Cash Collateral Account and (C) neither the Borrower nor any
other Person claiming on behalf of or through the Borrower shall have any right
or authority, whether express or implied, to make use of, or withdraw any funds,
investments or other properties from, the Cash Collateral Account, or to give
any instructions with respect to the Cash Collateral Account.

                  (h)      Deposit Bank will send a monthly report to Borrower
(in a manner consistent with Deposit Bank's standard practice) by regular U.S.
mail at the Borrower's address specified above, which monthly report shall
specify the balance of, and credits and charges to, the Cash Collateral Account
and each Sub-account thereof for each calendar day of the previous month.
Deposit Bank will send to the Lender (in a manner consistent with Deposit Bank's
standard practices), by regular U.S. mail at the Lender's address specified,
copies of all correspondence, notices, account statements and other information
(but not canceled checks) which Deposit Bank is obligated to send to Borrower.
Deposit Bank also agrees to provide to each of Borrower and the Lender (as a
service under this Agreement) copies of account statements and other account
information, including account balances, by telephone and by computer
communication, to the extent practicable and as shall have been requested by
Borrower or by Lender. Borrower shall be deemed at all times to have consented
to Deposit Bank's release of such account information to Lender. Deposit Bank's
liability for failure to comply with this Section shall not exceed the cost of
providing such information.

                                      -6-
<PAGE>

SECTION 3.        ALLOCATION AND DISBURSEMENT OF FUNDS IN THE CASH COLLATERAL
                  ACCOUNT.

                  (a)      With respect to each Collection Period, the Lender or
the Servicer shall allocate, and shall cause the Deposit Bank to allocate, from
time to time during such Collection Period the amounts deposited in the Cash
Collateral Account in the order and priority set forth in paragraph 10 of the
Note, such allocation to be done promptly upon receipt of any deposits. Amounts
deposited in the Deferred Maintenance Fund pursuant to paragraph 6(b) of the
Deed of Trust shall be allocated to the Deferred Maintenance Escrow Sub-account.
Amounts deposited in the US Bancorp Escrow Fund pursuant to paragraph 6(c) of
the Deed of Trust shall be allocated to the US Bancorp TI/LC Escrow Sub-account.
Amounts deposited in the Outstanding Tenant Allowance Escrow Fund pursuant to
paragraph 6(d) of the Deed of Trust shall be allocated to the Outstanding Tenant
Allowance Escrow Sub-account. Amounts deposited in the Tax and Insurance Impound
Fund pursuant to paragraph 6(a) of the Deed of Trust shall be allocated to the
Tax and Insurances Impound Fund Sub-account. Amounts deposited in the
Replacement/Leasing Escrow Fund pursuant to paragraph 6(f) of the Deed of Trust
shall be allocated to the Replacement/Leasing Escrow Sub-account.

                  (b)      Each Collection Period, the Lender or the Servicer
shall disburse or cause the Deposit Bank to disburse:

                           (i)      Amounts allocated to the Tax and Insurance
Impound Fund Sub-account as set forth hi paragraph 6(a) of the Deed of Trust;

                           (ii)     Amounts allocated to the Deferred
Maintenance Escrow Sub-account as set forth in paragraph 6(b) of the Deed of
Trust;

                           (iii)    Amounts allocated to the US Bancorp TI/LC
Escrow Sub-account as set forth in paragraph 6(c) of the Deed of Trust;

                           (iv)     Amounts allocated to the Outstanding Tenant
Allowance Escrow Sub-account as set forth in paragraph 6(d) of the Deed of
Trust;

                           (v)      Amounts allocated to the Monthly Debt
Service Sub-account to the Lender on the related Payment Date;

                           (vi)     Amounts allocated to the Replacement/Leasing
Escrow Sub-account as set forth in paragraph 6(f) of the Deed of Trust;

                                      -7-
<PAGE>

                           (vii)    Amounts allocated to the Operating Expense
Sub-account on each Business Day to the following bank account (the "OPERATING
ACCOUNT") (the amount to be sent to such Operating Account to be determined in
accordance with paragraph 10(a)(v)-(vii) of the Note and pursuant to the
Approved Annual Budget for Borrower as such Approved Annual Budget may be
adjusted in accordance with paragraph 10(d) of the Note):

                  Bank:       U.S. Bank
                  ABA#:       122-235-821
                  Attention:  Eli Muratalla
                  Fax:        (213) 623-5396
                  Account:    Library Square Associates, LLC, Operating Acct BMO
                  Account*:   153454148260

                           (viii)   Amounts allocated to the Junior Management
Fee Sub-account to the following bank account:

                  Bank:       Bank of the West
                  ABA#:       121-100-782
                  Attention:  Ana Rivera
                  Fax:        (323)727-4984
                  Account:    Maguire Properties, L.P.
                  Account#:   729-003749

                           (ix)     Amounts allocated to the Borrower Remainder
Sub-account to the following bank account:

                  Bank:       U.S. Bank
                  ABA#:       122-235-821
                  Attention:  Eli Muratalla
                  Fax:        (213)623-5396
                  Account:    Library Square Associates, LLC, Borrower Remainder
                  Account#:   153454148278

SECTION 4.        FEES.

                  (a)      The Borrower agrees to pay the fees of the Clearing
Bank and Deposit Bank in accordance with the customary fees charged by the
Clearing Bank and Deposit Bank for the services described herein, as such fees
are established from time to time.

                  (b)      Upon the request of the Borrower, the Clearing Bank
and Deposit Bank shall include their fees and the payment status thereof in an
account analysis statement.

SECTION 5.        TERMINATION.

                  (a)      The Lender may replace the Deposit Bank with a new
Deposit Bank upon five days' notice to the Borrower. The Borrower hereby agrees
that it shall take all reasonable action necessary to facilitate the transfer of
the respective obligations, duties and rights of the Deposit Bank to the
successor thereof selected by the Lender in its sole discretion.

                                      -8-
<PAGE>

                  (b)      The Lender shall terminate this Agreement upon the
occurrence of a Loan Satisfaction Event and return to Borrower all monies then
held in the Cash Collateral Account promptly after liquidating all Permitted
Investments.

                  (c)      This Agreement may be terminated by Deposit Bank at
any time on not less than thirty (30) days' prior written notice to each of the
Borrower and the Lender. Deposit Bank's rights to receive reimbursement from the
Borrower under Section 4 of this Agreement and Borrower's indemnification of
Deposit Bank under Section 14 of this Agreement shall survive any termination of
this Agreement. Upon termination of this Agreement, all funds remaining in the
Cash Collateral Account shall be forwarded by Deposit Bank directly to Lender,
unless Deposit Bank shall have received written instruction from the Lender
prior to the expiration of the thirty (30) day period set forth above directing
Deposit Bank to send such funds to the Borrower or another depository
institution approved in writing by the Lender and the Borrower.

SECTION 6.        MATTERS CONCERNING THE BORROWER.

                  (a)      Borrower hereby represents, warrants and covenants to
Lender that:

                           (i)      Intentionally deleted.

                           (ii)     The Borrower or the Manager shall, within
three (3) Business Days of the date hereof or within three (3) Business Days of
the date such accounts are opened, whichever is later, instruct all Persons that
presently or hereafter maintain open accounts with Borrower or the Manager, or
with whom the Manager or the Borrower presently or hereafter does business on an
"accounts receivable" basis with respect to the Property, to deliver all
payments due under such accounts to the Clearing Bank at a lock box address at
the Clearing Bank (the "LOCK BOX ADDRESS") in the form of checks or equivalent
instruments for the payment of money. Neither the Borrower nor the Manager shall
direct any such Person to make payments due under such accounts in any other
manner.

                           (iii)    Pursuant to an instruction letter in the
form of Exhibit B hereto (a "LESSEE PAYMENT DIRECTION LETTER"), the Borrower or
the Manager shall, within three (3) Business Days of the date hereof, notify and
advise, or will, for Leases executed after the date hereof, promptly notify and
advise, each tenant of the Property (collectively, the "TENANTS") under each
lease with respect to the Property (whether such lease is presently effective or
executed after the date hereof), to send directly to the Lockbox Address
promptly when due all payments, whether in the form of checks, cash, drafts,
money orders or any other type of payment whatsoever of rent or any other item
payable to the Borrower as landlord under such Leases. The foregoing
requirements need not be satisfied with respect to any Lease executed after the
date hereof to the extent the terms and conditions of the Lessee Payment
Direction Letter are incorporated in the applicable Lease.

                           (iv)     If notwithstanding the provisions of this
Section 6(a), Borrower or Manager (or any affiliate thereof) receives any Rents
then (x) Borrower or Manager (or such affiliate) shall be deemed to hold such
Rents in trust for Lender and (y) Borrower or Manager

                                      -9-
<PAGE>

shall deposit with the Clearing Bank within one (1) Business Day of receipt all
such Rents received by Borrower or Manager (or such affiliate).

                  (b)      Upon request of Lender, Borrower shall deliver to
Lender such evidence as Lender may reasonably request to evidence that Borrower
is complying with the provisions of this Section 6(a). Without the prior written
consent of the Lender, neither the Borrower nor the Manager shall (i) terminate,
amend, revoke or modify any Lessee Payment Direction Letter in any manner or
(ii) direct or cause any Tenant to pay any amount in any manner other than as
provided specifically in the Lessee Payment Direction Letter.

                  (c)      The Borrower hereby pledges, transfers and assigns to
the Lender, and grants to the Lender, as additional security for the payment and
performance of the Obligations, a continuing perfected first priority security
interest in and to, and a first lien upon, (i) the Cash Collateral Account, the
Clearing Account, the Operating Account and all of the Borrower's right, title
and interest in and to all cash, property or rights transferred to or deposited
therein from time to time, (ii) all earnings, investments and securities held in
the Cash Collateral Account in accordance with this Agreement and (iii) any and
all proceeds of the foregoing. This Agreement and the pledge, assignment and
grant of security interest made hereby shall secure payment of all amounts
payable by the Borrower to the Lender under the Note and the other Obligations.
The Borrower acknowledges that the Servicer, Clearing Bank and Deposit Bank are
acting as the agent of, and at the direction of, the Lender in connection with
the subject matter of this Agreement. The Borrower further agrees to execute,
acknowledge, deliver, file or do at its sole cost and expense, all other acts,
assignments, notices, agreements or other instruments as the Lender may
reasonably require in order to effectuate, assure, convey, secure, assign,
transfer and convey unto the Lender any of the rights granted by this Agreement
and to more fully perfect and protect any lien or security interest granted
hereby.

                  (d)      In its sole discretion, the Borrower may, from time
to time deposit amounts into the Cash Collateral Account in respect of any Loan
Sub-account and/or the Operating Account from sources of the Borrower other than
those received by the Clearing Bank with respect to the then-current Collection
Period; provided, that if the Borrower deposits such amounts, the amounts
deposited shall be subject to all of the terms hereof as if not separately
deposited by the Borrower, and may not be withdrawn except as otherwise provided
for in this Agreement. Nothing contained herein shall impair or otherwise limit
Borrower's obligations to timely make the payments (including, without
limitation, interest and principal) required by the Note, the Deed of Trust and
the other Loan Documents, it being understood that such payments shall be so
timely made in accordance with the Loan Documents regardless of the amounts on
deposit in the Clearing Account or Cash Collateral Account.

                  (e)      The Borrower hereby covenants and agrees that amounts
allocated to the Operating Expense Sub-account with respect to the payment of
operating expenses or capital expenditures shall be used only for payment of
checks made by the Borrower for the payment of operating expenses or capital
expenditures incurred in the ownership and operation of the Property and
reasonably approved by the Lender or permitted by the Loan Documents. In any
month, Borrower shall be entitled to receive and use for Cash Expenses an amount
in excess of the budgeted amount ("BUDGET VARIANCES") for such month set forth
in the Approved Annual Budget by requesting the same in writing not less than
three (3) Business Days prior to the first

                                      -10-
<PAGE>

day of the Collection Period during which such Budget Variances are to be
disbursed so long as the aggregate amount of all such Budget Variances so
requested by Borrower in any month does not exceed an amount that, together with
any Budget Variances previously disbursed to Borrower in such calendar year, is
greater than five percent (5%) of the total budgeted expenditures (excluding any
contingency line item) for such calendar year as set forth in the then current
Approved Annual Budget.

                  (f)      On or before the last day of each calendar quarter,
Borrower shall prepare and deliver to Lender a financial statement (the "ACTUAL
EXPENDITURE STATEMENT") in form and substance satisfactory to Lender in all
material respects setting forth all amounts expended for Operating Expenses
during the immediately preceding calendar quarter, including showing variances
from budget and setting forth a short explanation of any variance in excess of
ten percent (10%) of the budget line item in question and identifying any
payment made to an affiliate and the reasons therefor. Each Actual Expenditure
Statement shall be certified by an officer of Borrower or the REIT as being
true, correct and complete in all material respects and include a certification
that all amounts transferred to the Operating Account pursuant to this Agreement
were expended for Operating Expenses substantially in accordance with this
Agreement or shall be credited against or returned to the Cash Collateral
Account as provided below. Borrower shall promptly deliver to Lender such
further documentation (including, without limitation, invoices, canceled checks
or copies of contracts) and information as Lender may reasonably request
regarding any payments described in the Actual Expenditure Statement. On each
Reconciliation Date during the term of the Loan, if the Actual Expenditure
Statements for the immediately preceding calendar quarter indicate that the
Operating Expenses actually incurred and paid during such calendar quarter, plus
the amount necessary to maintain the Operating Account Balance Floor (as
hereinafter defined) in the Operating Account as of the last day of such
calendar quarter, were less than the amount disbursed to the Operating Account
during such calendar quarter (the positive difference in the amount disbursed to
the Operating Account and the amount actually spent on Operating Expenses is
hereafter referred to as the "EXPENSE SURPLUS"), then the funds allocated for
Operating Expenses to be disbursed to the Operating Expense Sub-account on the
next occurring Payment Date in accordance with the Approved Annual Budget (as
defined in the Note) (the "ALLOCATED DISBURSEMENT AMOUNT") shall be reduced by
an amount equal to the Expense Surplus; provided, further, that if the Allocated
Disbursement Amount is less than the Expense Surplus, then Borrower, prior to
the next occurring Payment Date, shall deposit into the Cash Collateral Account
the amount by which the Expense Surplus exceeds the Allocated Disbursement
Amount (the "ALLOCATION SURPLUS"). If Borrower shall fail to, within the
described required time periods, (i) so deposit any such Allocation Surplus into
the Cash Collateral Account, or (ii) provide the Actual Expenditure Statements
required by the terms hereof or (iii) after written request of Lender, provide
evidence of expenditures or (iv) provide to Lender the items described in
paragraph 18(b) of the Deed of Trust in accordance with the terms of such
paragraph 18(b) and (in the case of any of (i), (ii), (iii) or (iv)) such
failure continues for ten (10) or more days after notice of such failure, then
in addition to any other remedies which Lender may have with respect thereto,
Lender may elect not to fund the Operating Expense Sub-account from monies in
the Cash Collateral Account or Lender may continue to hold the funds in the
Operating Expense Sub-account until such failure is cured.

                                      -11-
<PAGE>

SECTION 7.        CERTAIN MATTERS REGARDING THE LENDER.

                  (a)      The parties agree that the Deposit Bank shall pay
over to the Lender all amounts deposited in any account maintained hereunder on
demand, provided, that in making such demand, the Lender gives notice to
Borrower of such demand, in writing, signed by the Lender or an authorized agent
thereof, and that an Event of Default under the Deed of Trust has occurred and
is continuing. Notwithstanding the foregoing, the Borrower shall not be deemed
to have waived any rights the Borrower may have against the Lender if it is
determined that the Lender acted improperly.

                  (b)      Upon the occurrence and during the continuance of an
Event of Default, Lender may exercise in respect of the Collateral all rights
and remedies available to Lender hereunder or under the other Loan Documents or
otherwise available at law or in equity. Without limiting the generality of the
foregoing or the provisions of paragraph (a) above, upon the occurrence and
during the continuance of an Event of Default, Borrower acknowledges and agrees
that it will have no further right to request or otherwise require Lender to
disburse funds from the Clearing Account or the Cash Collateral Account in
accordance with the terms of this Agreement, it being agreed that Lender may, at
its option, (i) direct the Deposit Bank to continue to hold the funds in the
Cash Collateral Account and/or (ii) continue from time to time to apply all or
any portion of the funds held in the Cash Collateral Account to any payment(s)
which such funds could have been applied to prior to such Event of Default (or
to pay Cash Expenses, Net Capital Expenditures (as defined in the Note) and
Extraordinary Expenses directly), to the extent and in such order and manner as
Lender in its sole discretion may determine, and/or (iii) direct that the
Deposit Bank or Clearing Bank from time to time disburse all or any portion of
the funds held in the Cash Collateral Account or other Collateral then or
thereafter held by the Deposit Bank or Clearing Bank, as applicable, to Lender,
in which event Lender may apply the funds held in the Cash Collateral Account or
other Collateral to the Obligations in any order and in such manner as Lender
may determine in its sole discretion.

                  (c)      Upon the occurrence and during the continuance of any
Event of Default, Lender may, at any time or from time to time, subject to the
requirements of applicable law, collect, appropriate, redeem, realize upon or
otherwise enforce its rights with respect to the Collateral, and without the
need to institute any legal action, make demand, exhaust any other remedies or
otherwise proceed to enforce its rights, provided that Lender gives notice to
Borrower, in writing, that an Event of Default has occurred and is continuing.

                  (d)      No failure on the part of Lender to exercise, and no
delay in exercising, any right under this Agreement or the Deed of Trust shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any
other right under this Agreement or the other Loan Documents. The remedies
provided in this Agreement, the Note, the Deed of Trust and the other Loan
Documents are cumulative and not exclusive of any remedies provided at law or in
equity.

SECTION 8.        MATTERS CONCERNING THE DEPOSIT BANK.

                  (a)      Borrower hereby authorizes and directs Deposit Bank
to comply, and Deposit Bank agrees to comply, with instructions originated by
the Lender in accordance with

                                      -12-
<PAGE>

this Agreement directing the disposition of funds from time to time in the Cash
Collateral Account or as to any other matters relating to the Cash Collateral
Account without further consent by Borrower, but subject to the terms of this
Agreement.

                  (b)      All defenses of Deposit Bank under the Agreement and
Articles 3, 4, and 4A of the Uniform Commercial Code (as adopted in the State
where the respective Account is located) as to the payment and collection of
items shall also be applicable to and enforceable against the Lender. Each of
Borrower and the Lender hereby authorizes and instructs Deposit Bank to supply
Borrower's or the Lender's endorsement, as appropriate, to any items that
Deposit Bank receives and deposits for collection to the Cash Collateral
Account.

                  (c)      Deposit Bank will not exercise any security interest
(except for the security interest provided in Section 4-210 of the Uniform
Commercial Code as adopted in the State where the Cash Collateral Account is
located), lien, right of setoff, deduction, recoupment or banker's lien or any
other interest in or against the Cash Collateral Account, and Deposit Bank
hereby subordinates any such security interest, lien or right which it may have
against the Cash Collateral Account, except that Deposit Bank may set off and
charge against the Cash Collateral Account for (i) the face amount of each
Returned Item (hereinafter defined), (ii) all usual and customary service
charges, (iii) account maintenance fees, (iv) transfer fees, (v) out-of-pocket
fees and expenses incurred by Deposit Bank in connection with the enforcement of
this Agreement, (vi) adjustments or corrections of posting or encoding errors,
and (vii) any other items normally chargeable to an account, whether incurred
before or after the date of this Agreement. As used in this Agreement, "RETURN
ITEM" shall mean (i) any items deposited into the Cash Collateral Account either
before or after the date of this Agreement and returned unpaid or otherwise
uncollected, whether for insufficient funds or for any other reason, and without
regard to the timeliness of such return or the occurrence or timeliness of any
drawee's notice of nonpayment; (ii) any items subject to a claim against Deposit
Bank for breach of transfer or presentment warranty under the Uniform Commercial
Code (as adopted in the State where the Cash Collateral Account is located),
(iii) any ACH entry credited to the Cash Collateral Account and returned unpaid
or subject to an adjustment entry under applicable clearing house rules, whether
for insufficient funds or for any other reason, and without regard to the
timeliness of such return or adjustment; (iv) any credit to the Cash Collateral
Account from a merchant card transaction against which a contractual demand for
chargeback has been made; and (v) any credit to the Cash Collateral Account made
in error.

                  (d)      Deposit Bank shall be entitled to rely conclusively
upon any notice or instruction it receives from the Lender and which Deposit
Bank believes in good faith to be a notice or instruction from the Lender, and
Deposit Bank shall have no obligation to investigate or verify the authenticity
or correctness of any such notice or instruction. Deposit Bank shall have no
liability to Borrower for honoring any instruction Deposit Bank receives from
the Lender regarding the Cash Collateral Account. Deposit Bank shall be fully
discharged from liability with respect to any funds on deposit in the Cash
Collateral Account to the extent that Deposit Bank honors and follows
instructions it receives from the Lender and transfers any of such funds to, or
on the instructions of, the Lender.

                  (e)      In the event a third party shall assert an adverse
claim by legal process against the Cash Collateral Account or any sums on
deposit therein, whether such claim shall

                                      -13-
<PAGE>

arise by tax lien, execution of judgment, attachment, garnishment, levy, claim
of a trustee in bankruptcy or debtor-in-possession, or a competing lien creditor
or other judicial or regulatory order or process (each, a "CLAIM"). Deposit Bank
may, in addition to other remedies it may possess under this Agreement or at law
or in equity, (i) suspend disbursements from the Cash Collateral Account
reasonably sufficient to satisfy such Claim without any liability until Deposit
Bank shall have received an appropriate court order or other assurances
acceptable to Deposit Bank in its sole discretion establishing that funds may
continue to be disbursed according to instructions then applicable to the Cash
Collateral Account, and/or (ii) immediately interplead all such funds in the
Cash Collateral Account into the registry of the appropriate court located in
the State where the Cash Collateral Account is maintained, and Borrower and the
Lender, jointly and severally, shall pay promptly all of Deposit Bank's costs,
expenses and attorneys' reasonable fees incurred in connection with such Claim.
If a bankruptcy or insolvency proceeding shall have been commenced by or against
Borrower, Deposit Bank shall be entitled to refuse to permit deposits to, or
withdrawals and/or transfers from, the Cash Collateral Account without any
liability until Deposit Bank shall have received an appropriate court order or
other assurances acceptable to Deposit Bank in its sole discretion establishing
that continued deposits to, or withdrawals and/or transfers from, the Cash
Collateral Account are authorized and do not and will not violate any law,
regulation, or order of any court.

SECTION 9.        CASUALTY AND CONDEMNATION PROCEEDS SUB-ACCOUNT; EXTRAORDINARY
                  RECEIPTS SUB-ACCOUNT.

                  Notwithstanding anything to the contrary contained herein, the
following items of Rents shall be deposited and held in the Loan Sub-accounts
described below and shall be applied in the order of priority set forth in this
Section 9, and Borrower shall advise Lender at the time of receipt thereof of
the nature of such Receipt so that Lender shall have sufficient time to instruct
the Deposit Bank to deposit and hold such amounts in the appropriate Loan
Sub-account:

                  (a)      Proceeds of any insurance, including, without
limitation, rent or business interruption insurance, which amounts shall be
deposited in the Casualty and Condemnation Proceeds Sub-account and shall be
applied (by instructions of Lender or Servicer to the Deposit Bank) in
accordance with the provisions of the Deed of Trust applicable thereto.

                  (b)      Condemnation awards, which amounts shall be deposited
in the Casualty and Condemnation Proceeds Sub-account and shall be applied (by
instructions of Lender or Servicer to the Deposit Bank) in accordance with the
provisions of the Deed of Trust applicable thereto.

                  (c)      Real estate tax refunds (net of any reasonable and
customary fees and disbursements of tax certiorari counsel deducted from such
refund to pay such counsel's fee), which amount shall be deposited in the
Extraordinary Receipts Sub-account and shall thereafter be transferred (by
instructions of Lender to the Deposit Bank) to the Operating Account to the
extent required to pay refunds due to any tenants of the Property (based on a
certificate of Borrower as to the tenants entitled to receive such refunds and
the amounts thereof), except Lender reserves the right to pay (or have the
Servicer pay) any such tenant directly using monies so deposited in the
Extraordinary Receipts Sub-account, in lieu of transferring such monies to the

                                      -14-
<PAGE>

Operating Account for such payment. Lender or Servicer shall apply any excess,
after the aforesaid payment, as if ordinary Rents deposited in the Cash
Collateral Account.

                  (d)      Damages or other payments in excess of $250,000 in
settlement of claims by Borrower against any tenant in connection with the
Property and arising out of such tenant's Lease, including, without limitation,
pertaining to any rejection, termination or cancellation of any Lease (including
in any bankruptcy case), Lease buy-out, and surrender payments from tenants or
any holdover rents or use and occupancy fees from tenants or former tenants
shall be deposited in the Extraordinary Receipts Sub-account. With respect to
any monies deposited in the Extraordinary Receipts Sub-account pursuant to this
paragraph (d), Lender shall direct Deposit Bank to apply the amount so deposited
(or the portion thereof specified below) as if ordinary Rents to be applied in
accordance with the terms of this Agreement for the month in question as
follows: (i) if the amount so deposited was paid under or with respect to a
Lease, either (x) each month, that portion of the amount so deposited that
equals the total amount paid divided by the number of months remaining in the
term of such Lease (at the time of any such cancellation, termination or
rejection) or (y) if Borrower shall satisfy Lender that the event resulting in
such payment did not materially adversely affect the fair market value of the
Property and that the Property would satisfy a Debt Service Coverage Ratio test
at least equal to 1.10:1.0 (provided that such Debt Service Coverage Ratio test
shall exclude any rents from the Lease from which such payments were received
and which payments are the subject of the requested disbursement), the entire
amount so deposited shall, provided no Event of Default is then continuing, be
disbursed on the next Payment Date to the Borrower Remainder Sub-account and
(ii) with respect to any other amount deposited in the Extraordinary Receipts
Sub-account pursuant to this paragraph (d), (x) if insufficient funds exist
during any month to make all payments to be made for such month prior to the
disbursement to the Borrower Remainder Sub-account, the portion of the amount so
deposited as is necessary to eliminate any such deficiency or (y) if Borrower
shall satisfy Lender that the event resulting in such payment did not materially
adversely affect the fair market value of the Property and that the Property
would satisfy a Debt Service Coverage Ratio test at least equal to 1.10:1.0
(provided that such Debt Service Coverage Ratio test shall exclude any rents
from the Lease from which such payments were received and which payments are the
subject of the requested disbursement), the entire amount so deposited shall,
provided no Event of Default is then continuing, be disbursed on the next
Payment Date to the Borrower Remainder Sub-account.

                  (e)      All sums paid with respect to a modification of any
Lease or otherwise paid in connection with Borrower taking any action under any
Lease (e.g., granting a consent) or waiving any provision thereof, but only to
the extent any such payment exceeds $250,000 (if such sums paid do not exceed
$250,000, such payment shall be deposited in the Clearing Account and applied as
ordinary Rents) shall be deposited in the Extraordinary Receipts Sub-account and
shall be applied (by instruction of Lender or Servicer to Deposit Bank) as
provided in any consent of Lender given in connection with any such action, or,
if no such direction is given, shall (i) in the case of any modification which
reduces the rent paid under any Lease or shortens the term of such Lease, either
(x) be applied as Rents available for distribution in accordance with the
provisions of this Agreement for the month in question only as to that portion
of the amount so deposited with Lender as Lender, in its reasonable discretion,
shall determine represents reduced rent or lost rent in the applicable month
under any such Lease as a result of any such modification or (y) if Borrower
shall satisfy Lender that the event resulting in

                                      -15-
<PAGE>

such payment did not materially adversely affect the fair market value of the
Property and that the Property would satisfy a Debt Service Coverage Ratio test
at least equal to 1.10:1.0 (provided that such Debt Service Coverage Ratio test
shall exclude any rents from the Lease from which such payments were received
and which payments are the subject of the requested disbursement), the entire
amount so deposited shall, provided no Event of Default is then continuing, be
disbursed on the next Payment Date to the Borrower Remainder Sub-account and
(ii) in all other cases, only be applied as Rents available for distribution in
accordance with the provisions of this Agreement for the month in question if
and to the extent either subclause (x) or (y) of paragraph (d)(ii) above shall
be applicable.

                  If the fees and disbursements of tax certiorari counsel
described in paragraph (c) above shall not have been deducted from the real
estate tax refunds by such counsel prior to payment of such refunds to Borrower,
then such fees and disbursements may be paid as part of Cash Expenses, provided
such fees and disbursements are commercially, reasonable. References to
application of any amounts received by Borrower by reason of any action taken by
Borrower under or with respect to a Lease, or otherwise, is not intended in any
manner to allow Borrower to take such action in prohibition of any other
provision of the Loan Documents. Except as expressly set forth in any judgment
of any court exercising jurisdiction thereover or in any agreement with the
Tenant approved by Lender, Lender shall in its reasonable judgment determine the
amount of any payment described in paragraph (d) that falls within clause (i)(x)
or (ii)(x) thereof as opposed to clause (i)(y) or (ii)(y) thereof.

SECTION 10.       OPERATING ACCOUNT. On the date hereof, Borrower shall deposit
in the Operating Account an amount equal to $500,000 (the "OPERATING ACCOUNT
BALANCE FLOOR"), which amount shall be funded with the proceeds of the Loan and
which may be used by Borrower from time to time to pay Operating Expenses at the
Property in accordance with the terms of this Agreement and the other Loan
Documents. If, as a result of payment of Operating Expenses at the Property in
accordance with the terms of this Agreement and the other Loan Documents, the
amount on deposit in the Operating Account shall at any time be less than the
Operating Account Balance Floor, then the amount to be disbursed to the
Operating Account pursuant to and in accordance with Section 3(b)(vi) hereof
shall be increased by an amount necessary to achieve a balance in the Operating
Account of no less than the Operating Account Balance Floor.

SECTION 11.       SUCCESSORS AND ASSIGNS; ASSIGNMENTS; AGENTS.

                  (a)      This Agreement shall bind and inure to the benefit of
and be enforceable by the Borrower, the Lender and the Manager and their
respective successors and assigns.

                  (b)      The Lender shall have the right to assign or transfer
rights and obligations under this Agreement without limitation. Any assignee or
transferee of Lender shall be entitled to all the benefits afforded the Lender
under this Agreement; provided, that such assignee or transferee shall upon
written request deliver to the other parties hereto written confirmation that
such assignee or transferee agrees to be bound by the terms of this Agreement
and is also the assignee or transferee of the Note and the other Loan Documents.

                  (c)      The Borrower shall have the right to assign and
transfer its rights and obligations hereunder only with the prior written
consent of the Lender.

                                      -16-
<PAGE>

                  (d)      Any duties or actions of the Lender hereunder may be
performed by the Lender or its agent(s), including without limitation, any
Servicer or trustee in a Securitization, which includes the Loan.

SECTION 12.       AMENDMENT.

                  This Agreement may be amended from time to time in writing by
all parties hereto. All amendments to this Agreement shall be in writing.

SECTION 13.       NOTICES.

                  Notices to the parties hereto shall be addressed and delivered
in the manner set forth in the Deed of Trust. Unless otherwise expressly
provided herein, all such notices, to be effective, shall be in writing
(including by facsimile), and shall be deemed to have been duly given or made
(a) when delivered by hand or by nationally recognized overnight carrier, (b)
upon receipt after being deposited in the mail, certified mail and postage
prepaid or (c) in the case of facsimile notice, when sent and electronically
confirmed, addressed as set forth above.

SECTION 14.       LIMITATION ON LIABILITY.

                  (a)      Lender shall not be liable for any acts, omissions,
errors in judgment or mistakes of fact or law, including, without limitation,
acts, omissions, errors or mistakes with respect to the Collateral, except for
those arising as a result of Lender's active gross negligence, illegal acts or
willful misconduct. Without limiting the generality of the foregoing, except as
otherwise expressly provided for herein or as required by applicable law, Lender
shall have no duty as to any Collateral, as to ascertaining or taking action
with respect to calls, conversions, exchanges, maturities, tenders or other
matters relative to any Collateral, whether or not Lender has or is deemed to
have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other right pertaining to any
Collateral. Lender is hereby authorized by Borrower to act on any written
instruction believed by Lender in good faith to have been given or sent by
Borrower.

                  (b)      The provisions of Section 57 of the Deed of Trust are
hereby incorporated by reference as if fully set forth herein.

                  (c)      Deposit Bank will use the due care in performing its
duties and responsibilities under this Agreement and shall only be responsible
for the loss that a court having jurisdiction over the Cash Collateral Account
shall have determined, in a final and unappealable judgment, had been incurred
by Borrower or the Lender solely as a result of Deposit Bank's gross negligence
or willful misconduct. Deposit Bank shall have no liability to any party for
failure of, or delay in, its performance under this Agreement as a result of any
act of God, fire, other catastrophe, force majeure, electrical or computer or
telecommunications failure, any event beyond the control of Deposit Bank, or
fraud committed by any third party. Nothing in this Agreement shall create any
agency, fiduciary, joint venture or partnership relationship between Deposit
Bank and Borrower or the Lender. Borrower hereby indemnifies Deposit Bank and
holds it harmless against any loss, damage or expense (including attorneys'
reasonable fees and expenses, court costs and other expenses) including, but not
limited to, unpaid charges, fees, and Returned Items for which the Lender and/or
Borrower originally

                                      -17-
<PAGE>

received credit or remittance, which loss, damage or expense Deposit Bank may
suffer as a result of entering into, or acting pursuant to, this Agreement,
honoring any instruction Deposit Bank receives from the Lender with respect to
the Cash Collateral Account or, to the extent required by this Agreement, not
honoring any instructions it receives from Borrower with respect to the Cash
Collateral Account, except for those losses, damages, or expenses that a court
having jurisdiction shall have determined in a final and unappealable judgment
resulted solely from Deposit Bank's gross negligence or willful misconduct. In
no event shall Deposit Bank be liable to any other party under this Agreement
for lost profits or special, indirect, exemplary, consequential or punitive
damages, even if Deposit Bank shall have been advised of the possibility of such
damages.

SECTION 15.       MORTGAGEE-IN-POSSESSION.

                  Borrower hereby confirms and agrees that notwithstanding the
provisions of this Agreement, Borrower retains sole control of the operation and
maintenance of the Property, subject to the obligations of Borrower under the
Deed of Trust, the Assignment of Leases and Rents and the other Loan Documents,
and Lender is not and shall not be deemed to be a mortgagee in possession.

SECTION 16.       GOVERNING LAW.

                  WITH REGARD TO THE OPERATION OF THE CASH COLLATERAL ACCOUNT
AND THE PAYMENT OF CHECKS AND OTHER ITEMS AGAINST THE CASH COLLATERAL ACCOUNT,
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NORTH CAROLINA. WITH REGARD TO ISSUES OF PERFECTION, PRIORITY AND
SECURITY INTEREST, REGARDLESS OF ANY PROVISION IN ANY OTHER AGREEMENT, FOR
PURPOSES OF THE UCC (AS DEFINED IN THE DEED OF TRUST), DEPOSIT BANK AGREES THAT
NEW YORK SHALL BE DEEMED TO BE DEPOSIT BANK'S JURISDICTION (WITHIN THE MEANING
OF SECTIONS 8-110 AND 9-304 OF THE UCC), EXCEPT AS SET FORTH ABOVE, THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

SECTION 17.       DUPLICATE ORIGINALS; COUNTERPARTS.

                  This Agreement may be executed in any number of duplicate
originals and each duplicate original shall be deemed to be an original. This
Agreement may be executed in several counterparts, each of which counterparts
shall be deemed an original instrument and all of which together shall
constitute a single Agreement. The failure of any party hereto to execute this
Agreement, or any counterpart hereof, shall not relieve the other signatories
from their obligations hereunder.

SECTION 18.       WAIVER OF JURY TRIAL. EXCEPT AS MAY BE PROHIBITED BY
APPLICABLE LAW, EACH OF THE LENDER, DEPOSIT BANK AND BORROWER IRREVOCABLY WAIVES
THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (INCLUDING ANY
COUNTERCLAIM) OF ANY TYPE IN WHICH THE

                                      -18-
<PAGE>

LENDER, DEPOSIT BANK OR BORROWER IS A PARTY AS TO ALL MATTERS ARISING DIRECTLY
OR INDIRECTLY OUT OF THIS AGREEMENT.

                         [NO FURTHER TEXT ON THIS PAGE]

                                      -19-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement in several counterparts (each of which shall be deemed an original) as
of the date first above written.

                         BORROWER:

                         LIBRARY SQUARE ASSOCIATES, LLC, a Delaware
                            limited liability company

                            By: Bunker Hill Senior  Mezzanine,  LLC,
                                a Delaware  limited liability company,
                                its sole member

                                By: Bunker Hill Junior Mezzanine, LLC,
                                    a Delaware limited liability company,
                                    its sole member

                                    By: New BHE, LLC,
                                        a Delaware limited liability company,
                                        its sole member

                                        By: Maguire Properties, L.P.,
                                            a Maryland limited partnership,
                                            its sole member

                                            By: Maguire Properties, Inc.,
                                                a Maryland corporation,
                                                its sole general partner

                                                By: /s/ Richard I. Gilchrist
                                                    -------------------------
                                                    Name:  Richard I. Gilchrist
                                                    Title: President

<PAGE>

                         MANAGER:

                         MAGUIRE PROPERTIES, L.P.,
                             a Maryland limited partnership

                         By: Maguire Properties, Inc.,
                             a Maryland corporation,
                             its sole general partner

                             By: /s/ Richard I. Gilchrist
                                 -----------------------
                                 Name: Richard I. Gilchrist
                                 Title: President

<PAGE>

                         LENDER:

                         GREENWICH CAPITAL FINANCIAL PRODUCTS,
                         INC., a Delaware corporation

                         By: /s/ Wayne M. Brandt
                             ------------------------
                             Name:  Wayne M. Brandt
                             Title: Managing Director

<PAGE>

                         AGENT:

                         WACHOVIA BANK, NATIONAL ASSOCIATION

                         By: /s/ Tracey Orcutt
                             -----------------------------
                             Name: Tracey Orcutt
                             Title: ASSOCIATE

<PAGE>

                                   EXHIBIT A

                        CLEARING BANK INSTRUCTION LETTER
              [TO BE SIGNED BY BORROWER AND BANK AT LOAN CLOSING]

                                               ______________, 2003

[Clearing Bank Name and Address]

                  Re:      Library Tower, Los Angeles, California

Ladies and Gentlemen:

                  Library Square Associates, LLC, a Delaware limited liability
company (the "BORROWER"), has entered into that certain Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture Filing (the "DEED
OF TRUST"), dated as of_________________, 2003, given by Borrower for the
benefit of Greenwich Capital Financial Products, Inc. (together with its
successors and assigns, the "LENDER"), pursuant to which the Lender has provided
financing to the Borrower secured by the Deed of Trust encumbering that certain
property described in the caption of this letter (the "PROPERTY"). The Property
is currently being managed by ___________________________(the "MANAGER").

                  Currently, the Borrower maintains the following account (the
"CLEARING ACCOUNT") with you:

                           Name: Library Square Associates, LLC
                           Account No.: 729-012054

                  The Borrower hereby notifies you that the Lender has required
that it implement certain automatic clearing and processing functions and hereby
instructs you, commencing on the date hereof (the "SWEEP COMMENCEMENT DATE"), to
disburse all revenues from the Property ("REVENUES") deposited in the Clearing
Account from time to time in accordance with the following terms and provisions:

                  Promptly upon receipt of this letter, you shall establish a
post office box address in which the Borrower shall cause all Revenues in the
form of checks, money orders and similar instruments to be deposited. Within one
Business Day (as defined below) of receipt, you, as the "CLEARING BANK." shall
receive and process all Revenues and shall deposit the same into the Clearing
Account. Checks made payable to the Borrower, the Manager, or the Clearing
Account shall be deemed suitable for deposit in the Clearing Account. Items
deposited with Clearing Bank that are returned for insufficient or uncollected
funds will be redeposited the first time. Items returned unpaid a second time
shall be processed in accordance with the standard procedures of the Clearing
Bank.

                  The Clearing Account shall be an account of each Borrower but
shall be under the sole dominion and control of the Lender and any servicer (a
"SERVICER") or other designee of the Lender named below or in a subsequent
written notice from the Lender. The Clearing Account

                                    EXH. A-1
<PAGE>

shall be assigned the federal tax identification number of the Borrower, which
number is 95-4665332. You shall hold amounts on deposit in the Clearing Account
as agent for the Lender and shall not commingle such amounts with any other
amounts held by you on behalf of the Lender, the Borrower or any other person or
entity. If, in accordance with standard operating procedures, the Clearing
Account may be established as a trust account for the benefit of the Lender,
Borrower directs that the Clearing Account be maintained as such an account.

                  The Borrower hereby notifies the Clearing Bank that, in
accordance with the Deed of Trust, the Clearing Account and all amounts held
therein from time to time, and all renewals, replacements and substitutions
therefor, have been irrevocably pledged to the Lender as additional security for
the loan evidenced by the Deed of Trust. In connection with such pledge, the
Borrower hereby waives all right of withdrawal from the Clearing Account.

                  The Borrower hereby irrevocably instructs and authorizes you,
beginning on the first business day after the Sweep Commencement Date, to
disburse on each business day of each week via the ACH System, if available, or
otherwise by wire transfer, all amounts constituting available funds on deposit
in the Clearing Account to the following account:

                           [Name of Servicer's Bank]
                           [Address of Servicer's Bank]
                           [Address of Servicer's Bank]
                           ABA No.:____________________
                           Account No.:________________
                           Name: [Library Square Associates, LLC Cash Collateral
                                 Account]

                  If transferring such amounts by the ACH System and if required
by Clearing Bank, each such transfer shall be initiated by the Lender or by the
Servicer. If the Clearing Bank provides electronic data transfer services, the
Clearing Bank shall provide the Lender and the Servicer access to the Clearing
Bank's electronic data transfer system for purposes of effecting such transfers.
At any time that funds may not be transferred as described above in this
paragraph, the Clearing Bank shall transfer amounts by wire transfer of
immediately available funds.

                  The instructions set forth herein are irrevocable and are not
subject to modification in any manner, except that the Lender or the Servicer
may, by written notice to you, amend the instructions contained herein.

                  In the event that the Clearing Bank fails to acknowledge that
its procedures with respect to the Clearing Account are governed by this letter
due to an objection to the terms hereof or otherwise, the Borrower hereby
appoints the Lender as its attomey-in-fact with full authority to make
reasonable changes to this letter and to execute on behalf of the Borrower any
new modified letter acceptable to the proposed Clearing Bank.

                  In accordance with the Clearing Bank's procedures, the
Clearing Bank shall maintain a record of all deposits and transfers from the
Clearing Account and furnish statements to Borrower and Lender, on a monthly
basis, of all such transactions.

                                    EXH. A-2
<PAGE>

                  Clearing Bank assumes no duty to discharge any obligation of
Borrower to Lender or others. If Clearing Bank disburses payments later than set
forth herein, its liability for making late disbursements shall not exceed the
amount of interest which would have been paid on such funds if they had been
deposited in the Clearing Account in a timely manner. Clearing Bank shall not be
responsible for any consequential, incidental, indirect or special damage which
would exceed this amount in connection with any such disbursements deemed late,
including, but not limited to, disbursements deemed late resulting from Clearing
Bank's acts, nor shall Clearing Bank be responsible for any claim, loss,
liability, cost, expense or delay caused by equipment breakdown, electrical or
mechanical failure, causes beyond Clearing Bank's reasonable control, the
failure of either party to give Clearing Bank clear and explicit notices and
instructions, or damages caused (in whole or in part) by the party seeking
redress. Borrower and Lender understand and agree that the Clearing Account and
the fees charged by Clearing Bank have been established in contemplation of the
limitation on Clearing Bank's liability set forth in this paragraph.

                  Except for events of Clearing Bank's negligence or willful
misconduct (and in any such event, subject to the damage limitations set forth
above), Borrower agrees to indemnify, defend and hold Clearing Bank, its parent,
affiliates, subsidiaries, and their respective officers, employees and agents
harmless from and against all claims, actions, damages, losses, liabilities and
expenses (including reasonable attorney's fees and court costs) arising out of
Clearing Bank's actions or omissions pursuant to this Agreement.

                  The parties hereto agree that Clearing Bank's sole
responsibility to Lender, Borrower, Manager or any third party for errors made
by Clearing Bank in processing any Rents shall be to process a correcting entry
in the next regularly scheduled processing of the work after receipt of
notification from Lender or its designee, Borrower or any third party.

                  Clearing Bank shall make every reasonable effort to deliver
the advices, copies and reports required by this Instruction Letter by the
mutually agreed upon time but does not guarantee a specific delivery time.
Accordingly, Clearing Bank's sole responsibility to Lender or any third party
with respect to the time of delivery of the advices, copies and reports required
by this Instruction Letter shall be to deliver such advices, copies and reports
as close to the mutually agreed upon time as may be reasonably practicable.

                  If Clearing Bank is unable to debit the Clearing Account for
any reason or if the Clearing Account contains insufficient funds from which to
reimburse itself on a particular business day for any of the charges to the
Clearing Account set forth on Schedule 2 attached hereto, Clearing Bank is
entitled to recover the insufficiency from incoming funds deposited into the
Clearing Account that business day. If, upon the next business day, the Clearing
Account continues to contain insufficient funds, Borrower agrees to reimburse
Clearing Bank promptly upon receiving Clearing Bank's notice of the same.

                  Matters not covered by this letter shall be determined in
accordance with the customary procedures of the Clearing Bank and in the event
of a conflict between the terms of this letter and the customary procedures of
the Clearing Bank, the terms of this letter shall govern.

                                    EXH. A-3
<PAGE>

                  The undersigned also notifies you that the name and address of
the current Servicer with respect to the Cash Management Agreement is:

                           [Name of Servicer]
                           [Address of Servicer]
                           [Address of Servicer]
                           Attention: ___________________
                           Telephone:_____________________
                           Facsimile:______________________

                  If you have any questions concerning this letter or the Cash
Management Agreement, please contact______________of the Lender at (____) __-__
or__________of the Servicer at (__)____-_____.

                  The address of the current Manager is:

                           __________________________
                           555 West Fifth Street, Suite 5000
                           Los Angeles, California 90013

                                    EXH. A-4
<PAGE>

                  Please acknowledge receipt of this letter and your agreement
to the terms described herein by executing and returning to the Borrower an
acknowledgment in the form of Schedule 1 hereto.

                         BORROWER:

                         LIBRARY SQUARE ASSOCIATES, LLC, a Delaware
                           limited liability company

                         By: Bunker Hill Senior Mezzanine, LLC,
                             a Delaware limited liability company,
                             its sole member

                             By: Bunker Hill Junior Mezzanine, LLC,
                                 a Delaware limited liability company,
                                 its sole member

                                 By: New BHE,LLC,
                                     a Delaware limited liability company,
                                     its sole member

                                     By: Maguire Properties, L.P.,
                                         a Maryland limited partnership,
                                         its sole member

                                         By: Maguire Properties, Inc.,
                                             a Maryland corporation,
                                             its sole general partner

                                             By:________________________
                                                Name:
                                                Title:

                                    EXH. A-5
<PAGE>

                         ACKNOWLEDGED AND AGREED:

                         GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.,
                           a Delaware corporation

                         By:___________________________
                            Name:
                            Title:

                                    EXH. A-6
<PAGE>

                                   SCHEDULE 1

                             FORM OF ACKNOWLEDGMENT

                                              ______________,2003

Library Square Associates, LLC
555 West Fifth Street, Suite 5000
Los Angeles, California 90013

Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830

                  Reference is made to that certain Clearing Bank Instruction
Letter, dated ______________________________, 2003 (the "INSTRUCTION LETTER")
from Library Square Associates, LLC (the "BORROWER"). I, [_______________], on
behalf of_______________________ (the "BANK"), hereby acknowledge receipt of the
instructions set forth in the Instruction Letter and notice of the pledges and
security interest described therein. The Bank hereby agrees to perform the
instructions set forth in the Instruction Letter upon the delivery by Greenwich
Capital Financial Products, Inc. (the "LENDER") of the Instruction Letter.

                        [INSERT SIGNATURE BLOCK OF BANK]

LOCK BOX ADDRESS:

Library Square Associates, LLC
P.O. Box 512690
Los Angeles, California 90051-0690

                                    SCH. 1-1
<PAGE>

                                   SCHEDULE 2

                               CLEARING BANK FEES

                                    SCH. 2-1
<PAGE>

                                    EXHIBIT B

                    FORM OF LESSEE PAYMENT DIRECTION LETTER

                              [MANAGER LETTERHEAD]

                                  [Date]
[Addressee]
                  Re:      Payment Direction Letter for [Property]
Dear [_________]:

                  [BORROWER], the owner of the [PROPERTY] (the "PROPERTY"), has
mortgaged the Property to Greenwich Capital Financial Products, Inc. (together
with its successors and assigns, the "LENDER") and has agreed that all rents due
for the Property will be paid directly to a bank selected by the Lender.
Therefore, from and after [DATE], all rent to be paid by you under the [LEASE]
between you and [BORROWER/MANAGER] (the "LEASE") should be sent directly to the
following address:

                           [Clearing Bank Name]
                           [Lockbox Address]

                  All checks should be made out to the "[BORROWER]".

                  These payment instructions cannot be withdrawn or modified
without the prior written consent of the Lender or its agent (the "SERVICER").
or pursuant to a joint written instruction from the Borrower and the Lender or
the Servicer. Until you receive written instructions from the Lender or the
Servicer, continue to send all rent payments due under the Lease to [Clearing
Bank Name]. All rent payments must be delivered to [Clearing Bank Name] no later
than the day on which such amounts are due under the Lease.

                                    EXH. B-1
<PAGE>

                  If you have any questions concerning this letter, please
contact [_______] at [_______]. We appreciate your cooperation in this matter.

                         MAGUIRE PROPERTIES, L.P.,
                             a Maryland limited partnership

                         By: Maguire Properties, Inc.,
                             a Maryland corporation,
                             its sole general partner

                             By:___________________________
                                Name:
                                Title:

                                    EXH. B-2
<PAGE>

                         SUBSTITUTE PROMISSORY NOTE A-l

$ 130,260,000.00                                                   June 26, 2003

                  1.       For value received, LIBRARY SQUARE ASSOCIATES, LLC, a
Delaware limited liability company, having its principal place of business at
555 West Fifth Street, Suite 5000, Los Angeles, California 90013 ("BORROWER")
promises to pay to the order of GREENWICH CAPITAL FINANCIAL PRODUCTS, INC, a
Delaware corporation ("LENDER"), at its principal office at 600 Steamboat Road,
Greenwich, Connecticut 06830, or at such place as the holder hereof may from
time to time designate in writing, the principal sum of ONE HUNDRED THIRTY
MILLION TWO HUNDRED SIXTY THOUSAND and No/100 Dollars ($130,260,000.00), in
lawful money of the United States of America, with interest thereon to be
computed on the unpaid principal balance from time to time outstanding at a
fixed rate per annum equal to 4.66% (the "INTEREST RATE").

                  2.       Principal and interest under this Substitute
Promissory Note A-l (this "NOTE") shall be paid by Borrower as follows:

                    A.     A payment of interest only on the date hereof for the
interest accrual period from the date hereof to and including June 30, 2003; and

                    B.     Commencing on August 1, 2003 and on each Payment Date
(as hereinafter defined) thereafter through and including the Maturity Date,
Borrower shall pay to Lender a monthly amount equal to interest only on the
outstanding principal balance of the Loan that accrued during the prior
Collection Period (as defined in the Cash Management Agreement) (such amount
hereinafter the "MONTHLY PAYMENT AMOUNT"), and the balance of the principal sum
of this Note together with unpaid interest hereon shall be due and payable on
the Maturity Date.

                    C.     Interest on the principal sum of this Note shall be
calculated on the basis of the actual number of days elapsed and a three hundred
sixty (360) day year. In computing the number of days during which interest
accrues, the day on which funds are initially advanced shall be included
regardless of the time of day such advance is made. All amounts due under this
Note shall be payable without setoff, counterclaim or any other deduction
whatsoever.

                  3.       As used in this Note:

                    (a)    The term "ANNUAL BUDGET" shall mean an annual budget
submitted by Borrower to Lender in accordance with the terms of paragraph 10(d)
herein.

                    (b)    The term "APPROVED ANNUAL BUDGET" shall have the
meaning set forth in paragraph 10(d) hereof.

                    (c)    The term "ASSIGNMENT OF LEASES" shall mean that
certain Assignment of Leases and Rents of even date herewith executed by
Borrower in favor of Lender.

                    (d)    The term "BUSINESS DAY" shall mean any day except a
Saturday, Sunday or other day on which commercial banks are required or
permitted by law to close in New York City.

<PAGE>

                  (e)      The term "CAPITAL EXPENDITURES" shall mean for any
period, the amount expended for items capitalized under generally accepted
accounting principles including expenditures for building improvements or major
repairs, leasing commissions and tenant improvements.

                  (f)      The term "Cash Expenses" shall mean for any period,
the operating expenses for the Trust Property as set forth in an Approved Annual
Budget to the extent that such expenses are actually incurred by Borrower minus
payments into the Tax and Insurance Impound Fund and the Replacement/Leasing
Escrow Fund.

                  (g)      The term "CODE" shall mean the Internal Revenue Code
of 1986, as amended.

                  (h)      The term "DEBT" shall mean the whole of the principal
sum of this Note, together with all interest accrued or due and unpaid thereon
and all other sums due under the Loan Documents.

                  (i)      The term "DEED OF TRUST" shall mean that certain Deed
of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing
of even date herewith in the aggregate amount of this Note given by Borrower for
the use and benefit of Lender covering the fee estate of certain premises as
more particularly described therein.

                  (j)      The term "DEFAULT RATE" shall mean, a rate per annum
which is equal to the lesser of (i) the maximum rate permitted by applicable
law, or (ii) five percent (5%) above the Interest Rate.

                  (k)      The term "DEFEASANCE COLLATERAL" shall mean U.S.
Obligations which provide payments (i) on or prior to, but as close as possible
to, all Payment Dates under this Note after the Defeasance Date and up to and
including the Maturity Date, and (ii) in amounts equal to or greater than the
Scheduled Defeasance Payments.

                  (1)      The term "EXTRAORDINARY EXPENSE" shall mean an
extraordinary operating expense or capital expense not set forth in the Approved
Annual Budget or allotted for in the Replacement/Leasing Escrow Fund.

                  (m)      The term "LOAN" shall mean that certain loan in the
original principal amount of $260,000,000 made by Lender to Borrower as
evidenced by this Note and Substitute Promissory Note A-2 (as hereinafter
defined) and secured inter alia by the Deed of Trust.

                  (n)      The term "LOAN DOCUMENTS" shall mean collectively
this Note, the Deed of Trust, the Assignment of Leases and any and all other
documents securing, evidencing, or guaranteeing all or any portion of the Loan
or otherwise executed and/or delivered in connection with this Note and the
Loan.

                  (o)      The term "MATURITY DATE" shall mean July 1, 2013,
provided that, in the event that the Loan is accelerated pursuant to the terms
of this Note or the other Loan Documents, the Maturity Date shall be the date of
such acceleration.

                  (p)      The term "NET CAPITAL EXPENDITURES" shall mean for
any period the amount by which Capital Expenditures during such period exceeds
reimbursements for such items during such period from any fund established
pursuant to the Loan Documents.

                                      -2-
<PAGE>

                  (q)      The term "NOTES" shall mean, collectively, this Note
and Substitute Promissory Note A-2.

                  (r)      The term "PAYMENT DATE" shall mean the first (1st)
day of each calendar month during the term of the Loan; provided, however that
if the first (1st) day of any given month is not a Business Day, then amounts
due on the Payment Date for such month shall be due on the immediately
succeeding Business Day.

                  (s)      The term "RELEASE DATE" shall mean the earlier to
occur of (i) July 1, 2006 and (ii) the date that is two (2) years from the
"startup day" (within the meaning of Section 860G(a)(9) of the Code) of the
REMIC Trust established in connection with the last Securitization involving any
portion of this Loan.

                  (t)      The term "REMIC TRUST" shall mean a "real estate
mortgage investment conduit" within the meaning of Section 860D of the Code that
holds this Note.

                  (u)      The term "SCHEDULED DEFEASANCE PAYMENTS" shall mean
the Monthly Payment Amount required under the Notes for all Payment Dates
occurring after the Defeasance Date (including, on the Maturity Date, the
remaining outstanding principal balance on the Notes as of the Maturity Date).

                  (v)      "SUBSTITUTE PROMISSORY NOTE A-2" shall mean that
certain Substitute Promissory Note A-2 dated as of the date hereof made by
Borrower to Lender in the principal amount of $129,740,000.

                  (w)      The term "U.S. OBLIGATIONS" shall mean direct full
faith and credit obligations of the United States of America that are not
subject to prepayment, call or early redemption or such other obligations
(designated by Borrower) of the United States of America or another Person that
the Rating Agencies have confirmed, or shall confirm, in writing will not, in
and of themselves, result in a downgrade, withdrawal or qualification of the
initial, or, if higher, then current ratings assigned in connection with any
securitization of the Loan.

                  (x)      The term "YIELD MAINTENANCE PREMIUM" shall mean an
amount which, when added to the outstanding principal amount of the Loan, would
be sufficient to purchase U.S. Obligations which provide payments (a) on or
prior to, but as close as possible to, all successive scheduled Payment Dates
under the Notes arising from and after the date of determination of such Yield
Maintenance Premium through the Maturity Date and (b) in amounts equal to the
Monthly Payment Amount required under the Notes through the Maturity Date,
together with the outstanding principal balance of the Notes as of the Maturity
Date assuming all such Monthly Payments are made (including any servicing costs
associated therewith), in all cases without duplication among this Note and
Substitute Promissory Note A-2. In no event shall the Yield Maintenance Premium
be less than zero.

                  All capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to such terms in the Deed of Trust.

                  4.       The outstanding principal balance of this Note shall
bear interest throughout the term of the Loan at the Interest Rate as set forth
herein.

                  5.       (a) This Note shall mature on the Maturity Date, at
which time the entire Loan shall be due and payable.

                                      -3-
<PAGE>

                  (b)      If any sum payable under this Note is not paid on or
before the date on which it is due, Borrower shall pay to Lender upon demand an
amount equal to the lesser of five percent (5%) of such unpaid sum or the
maximum amount permitted by applicable law in order to defray a portion of the
expenses incurred by Lender in handling and processing such delinquent payment
and to compensate Lender for the loss of the use of such delinquent payment. If
the day when any payment required under this Note is due is not a Business Day,
then payment shall be due on the immediately succeeding Business Day.

                  6.       The Debt or any portion thereof shall without notice
become immediately due and payable at the option of Lender upon the happening of
any Event of Default. In the event that it should become necessary to employ
counsel to collect or enforce the Debt or to protect or foreclose the security
therefor, Borrower also shall pay on demand all costs of collection incurred by
Lender, including attorneys' fees and costs reasonably incurred for the services
of counsel whether or not suit be brought.

                  7.       Borrower does hereby agree that upon the occurrence
and during the continuance of an Event of Default (including upon the failure of
Borrower to pay the Debt in full on the Maturity Date), Lender shall be entitled
to receive and Borrower shall pay interest on the entire unpaid principal sum
and any other amounts due at the Default Rate.

                  8.       This Note, together with Substitute Promissory Note
A-2, is evidence of the Loan and of the obligation of the Borrower to repay the
Loan in accordance with the terms thereof. This Note is secured inter alia by
(i) the Deed of Trust, (ii) an Assignment of Leases, and (iii) the other Loan
Documents.

                  9.       (a) Borrower expressly waives any right to prepay the
Loan, in whole or in part, except as hereinafter provided.

                  (b)      Notwithstanding anything herein or in any other Loan
Documents to the contrary, except if expressly required or permitted under any
Loan Document (including as a result of any of the prepayment events specified
in paragraph 4(f) of the Deed of Trust), Borrower may not voluntarily prepay the
Loan, in whole or in part, prior to the Payment Date occurring in April, 2013
(the "LOCK OUT DATE"). From and after the Lock Out Date, Borrower shall have the
right to prepay all or any portion of the Loan provided that Borrower gives
Lender at least 15 days' prior written notice thereof. If any such prepayment is
not made on a Payment Date, Borrower shall also pay interest that would have
accrued on such prepaid amount to, but not including, the next Payment Date. Any
such prepayment shall be made without payment of the Yield Maintenance Premium.
All proceeds of a voluntary prepayment of the Loan made by Borrower in respect
of the principal and interest of the Loan shall be applied to interest and
principal due on this Note and Substitute Promissory Note A-2, pro-rata.

                  (c)      Provided no Event of Default shall be continuing,
Borrower shall have the right on any Payment Date after the Release Date and
prior to the Lock Out Date to voluntarily defease the entire principal amount of
the Loan and obtain a release of the Lien of the Deed of Trust by providing
Lender with the Defeasance Collateral (a "DEFEASANCE EVENT"), subject to the
satisfaction of the following conditions precedent:

                           (i)      Borrower shall give Lender not less than
thirty (30) days prior written notice specifying a date (the "DEFEASANCE DATE")
on which the Defeasance Event is to occur.

                                      -4-
<PAGE>

                           (ii)     Borrower shall pay to Lender (A) all
payments of principal (if any) and interest due on the Loan to and including the
Defeasance Date and (B) all other sums, then due under this Note, the Deed of
Trust and the other Loan Documents;

                           (iii)    Borrower shall deposit the Defeasance
Collateral into the Defeasance Collateral Account and otherwise comply with the
provisions of subsections (d) and (e) of this Paragraph 9;

                           (iv)     Borrower shall execute and deliver to Lender
a Security Agreement in respect of the Defeasance Collateral Account and the
Defeasance Collateral;

                           (v)      Borrower shall deliver or cause to be
delivered to Lender an opinion or opinions of counsel for Borrower that is
standard in commercial lending transactions and subject only to customary
qualifications, assumptions and exceptions opining, among other things, that (i)
Lender has a legal and valid perfected security interest in the Defeasance
Collateral Account and the Defeasance Collateral, (ii) if a securitization has
occurred, the REMIC Trust formed pursuant to such securitization will not fail
to maintain its status as a "real estate mortgage investment conduit" within the
meaning of Section 860D of the Code as a result of a Defeasance Event pursuant
to this Paragraph 9, (iii) delivery of the Defeasance Collateral and the grant
of a security interest therein to Lender shall not constitute an avoidable
preference under Section 547 of the Bankruptcy Code or applicable state law
(assuming the Debt is fully secured) and (iv) a non-consolidation opinion with
respect to the Successor Borrower;

                           (vi)     Borrower shall deliver to Lender a letter
issued by each of the applicable Rating Agencies (as defined in the Cash
Management Agreement) which confirms that the taking of the action referenced
therein will not result in any qualification, withdrawal or downgrading of any
existing ratings of securities created in a Securitization;

                           (vii)    Borrower shall deliver a certificate to
Lender which is signed by a senior executive officer of Borrower, or an entity
that directly or indirectly controls the management of Borrower, certifying that
the requirements set forth in this Paragraph 9 have been satisfied;

                           (viii)   Borrower shall deliver a letter of a "big
four" or other nationally recognized public accounting firm acceptable to Lender
confirming that the Defeasance Collateral will generate monthly amounts equal to
or greater than the Scheduled Defeasance Payments;

                           (ix)     Borrower shall deliver such other
certificates, opinions, documents and instruments as Lender may reasonably
request;

                           (x)      Borrower shall pay all reasonable costs and
expenses of Lender incurred in connection with the Defeasance Event, including
Lender's reasonable attorneys' fees and expenses and Rating Agency fees and
expenses; and

                           (xi)     Borrower shall simultaneously defease
Substitute Promissory Note A-2 in accordance with the provisions thereof.

                  (d)      On or before the date on which Borrower delivers the
Defeasance Collateral, Borrower shall open at any Eligible Institution (as
defined in the Cash Management Agreement) the defeasance collateral account (the
"DEFEASANCE COLLATERAL ACCOUNT") which

                                      -5-
<PAGE>

shall at all times be an Eligible Account (as defined in the Cash Management
Agreement). The Defeasance Collateral Account shall contain only (i) Defeasance
Collateral, and (ii) cash from interest and principal paid on the Defeasance
Collateral. All cash from interest and principal payments paid on the Defeasance
Collateral up to the Monthly Payment Amount shall be paid over to Lender on each
Payment Date and applied to accrued and unpaid interest; provided that prior to
any such Payment Date, all cash from interest and principal payments paid on the
Defeasance Collateral may be invested in Permitted Investments selected by
Borrower. Any cash from interest and principal paid on the Defeasance Collateral
not needed to pay accrued and unpaid interest shall be retained in the
Defeasance Collateral Account as additional collateral for the Loan and may be
invested in Permitted Investments selected by Borrower. Borrower shall cause the
Eligible Institution at which the Defeasance Collateral is deposited to enter
into an agreement with Borrower and Lender, satisfactory to Lender in its sole
discretion, pursuant to which such Eligible Institution shall agree to hold and
distribute the Defeasance Collateral in accordance with this Note. The Successor
Borrower shall be the owner of the Defeasance Collateral Account and shall
report all income accrued on Defeasance Collateral for federal, state and local
income tax purposes in its income tax return. Borrower shall prepay all cost and
expenses associated with opening and maintaining the Defeasance Collateral
Account. Lender shall not in any way be liable by reason of any insufficiency in
the Defeasance Collateral Account.

                  (e)      In connection with a Defeasance Event under this
Paragraph 9, Borrower shall, if required by the Rating Agencies or if Borrower
elects to do so, establish or designate a successor entity (the "SUCCESSOR
BORROWER") which shall be a Special Purpose Bankruptcy Remote Entity and which
shall be approved by the Rating Agencies. Any such Successor Borrower may, at
Borrower's option, be an Affiliate of Borrower unless the Rating Agencies shall
require otherwise. Borrower shall transfer and assign all obligations, rights
and duties under and to this Note, together with the Defeasance Collateral to
such Successor Borrower. Such Successor Borrower shall assume the obligations
under this Note and the Security Agreement and Borrower shall be relieved of its
obligations under such documents and the Loan Documents (except for any
environmental indemnities or other obligations that survive repayment of the
Loan). Borrower shall pay a minimum of $1,000 to any such Successor Borrower as
consideration for assuming the obligations under this Note and the Security
Agreement. Borrower shall pay all costs and expenses incurred by Lender,
including Lender's reasonable attorney's fees and expenses, incurred in
connection therewith.

                  (f)      Mandatory prepayments made in connection with the
application pursuant to the Deed of Trust of insurance proceeds or condemnation
awards shall be paid in the amounts and at the times specified in the Deed of
Trust, and, notwithstanding anything herein to the contrary, provided that no
Event of Default has occurred and is continuing no Yield Maintenance Premium or
other premium shall be due or payable in connection with any such mandatory
prepayment whenever paid.

                  (g)      Except as otherwise expressly provided in paragraph
9(f) hereof, the Yield Maintenance Premium shall be due, to the extent permitted
by applicable law, under any and all

                                      -6-
<PAGE>

circumstances where all or any portion of the Loan is paid prior to the Lock Out
Date as a result of an involuntary prepayment or a voluntary prepayment, even if
such prepayment results from Lender's exercise of its rights upon Borrower's
default and acceleration of the Maturity Date (irrespective of whether
foreclosure proceedings have been commenced), and shall be in addition to any
other fees or sums due hereunder or under any of the other Loan Documents. THE
YIELD MAINTENANCE PREMIUM REQUIRED BY THIS SUBPARAGRAPH 9 IS ACKNOWLEDGED BY
BORROWER TO BE PARTIAL COMPENSATION TO LENDER FOR THE COST OF REINVESTING THE
LOAN PROCEEDS AND FOR THE LOSS OF THE CONTRACTED RATE OF RETURN ON THE LOAN.
FURTHERMORE, BORROWER ACKNOWLEDGES THAT THE LOSS THAT MAY BE SUSTAINED BY LENDER
AS A RESULT OF SUCH PREPAYMENT BY BORROWER IS NOT SUSCEPTIBLE OF PRECISE
CALCULATION AND THE YIELD MAINTENANCE PREMIUM REPRESENTS THE GOOD FAITH EFFORT
OF BORROWER AND LENDER TO COMPENSATE LENDER FOR SUCH LOSS. EXCEPT AS EXPRESSLY
PERMITTED IN THIS PARAGRAPH 9, BORROWER EXPRESSLY WAIVES ALL RIGHTS IT MAY
HAVE UNDER CALIFORNIA CIVIL CODE SECTION 2954.10 (OR OTHERWISE) TO PREPAY THE
LOAN PRIOR TO THE LOCK OUT DATE, IN WHOLE OR IN PART, WITHOUT PENALTY, WHETHER
VOLUNTARILY OR UPON ACCELERATION OF THE MATURITY DATE OF THE LOAN, AND AGREES
THAT IF, FOR ANY REASON A PREPAYMENT OF ALL OR ANY OF THE LOAN IS MADE PRIOR TO
THE LOCK OUT DATE, WHETHER VOLUNTARILY OR UPON OR FOLLOWING ANY ACCELERATION OF
THE MATURITY DATE OF THE LOAN BY LENDER ON ACCOUNT OF ANY DEFAULT BY BORROWER
UNDER ANY LOAN DOCUMENT, THEN BORROWER SHALL BE OBLIGATED TO PAY, CONCURRENTLY
THEREWITH, THE YIELD MAINTENANCE PREMIUM SPECIFIED ABOVE. BY INITIALING THIS
PROVISION IN THE SPACE PROVIDED BELOW, BORROWER DECLARES THAT LENDER'S AGREEMENT
TO MAKE THE LOAN AT THE INTEREST RATE AND ON THE OTHER TERMS SET FORTH HEREIN
CONSTITUTES ADEQUATE AND VALUABLE CONSIDERATION, GIVEN INDIVIDUAL WEIGHT BY
BORROWER, FOR THIS WAIVER AND AGREEMENT.

                                  /s/ ILLEGIBLE
                                  -------------
                                    INITIALS

                  10.      (a) Borrower, Lender and Maguire Properties, L.P., as
manager, have entered into the Cash Management Agreement dated the date hereof.
Borrower shall cause all Rents to be deposited in the Clearing Account (as
defined in the Cash Management Agreement) pursuant to the Cash Management
Agreement. All Rents deposited in the Cash Collateral Account (as defined in the
Cash Management Agreement) shall be allocated to the sub-accounts established
pursuant to, and as defined in, the Cash Management Agreement in the following
order of priority:

                               (i)  First, to fund the Tax and Insurance Impound
Fund Subaccount (as defined in the Cash Management Agreement) until the amount
on deposit therein is equal to the amount required to be deposited in the Tax
and Insurance Impound Fund on the related Payment Date in accordance with the
terms and conditions of the Deed of Trust;

                                      -7-
<PAGE>

                           (ii)     Second, to fund the Monthly Debt Service
Subaccount (as defined in the Cash Management Agreement) until the amount on
deposit therein is equal to the Monthly Payment Amount and the Monthly Payment
Amount under Substitute Promissory Note A-2;

                           (iii)    Third, to fund the Monthly Debt Service
Subaccount with any other amounts due to the Lender under the Loan Documents not
otherwise addressed by this paragraph 10;

                           (iv)     Fourth, in the event that (A) an NOI Trigger
Event has occurred and is then continuing and (B) the Leasing Escrow Fund
Catch-Up Deposit is then fully on deposit in the Replacement/Leasing Escrow Fund
Sub-account (as defined in the Cash Management Agreement), to fund the
Replacement/Leasing Escrow Fund Subaccount until the amount on deposit therein
is equal to the sum of the Monthly Replacement Escrow Amount and the Monthly
Leasing Escrow Deposit on the related Payment Date in accordance with the terms
and conditions of the Deed of Trust, but subject to paragraph 6(g) of the Deed
of Trust, if applicable;

                           (v)      Fifth, to fund the Operating Expense
Subaccount (as defined in the Cash Management Agreement) until the amount on
deposit therein is equal to the sum of (A) the Cash Expenses for the prior
calendar month pursuant to the terms and conditions of the related Approved
Annual Budget (as such Approved Annual Budget may be adjusted in accordance with
paragraph 10(d) below), (B) any additional amount for Cash Expenses requested
pursuant to and in accordance with Section 6(e) of the Cash Management Agreement
and (C) any additional amount (if any) that, after taking into account funds
deposited in the Operating Expense Subaccount pursuant to clauses (A) and (B)
above, causes the amount on deposit in such Operating Expense Subaccount to
equal the Operating Account Balance Floor (as defined in the Cash Management
Agreement); provided, however, in no event shall any amounts be funded in the
Operating Expense Subaccount pursuant to this clause (v) to the extent that such
amounts represent any compensation due to an affiliated property manager in
excess of $1,000,000 for the then existing calendar year;

                           (vi)     Sixth, to fund the Operating Expense
Subaccount with any Net Capital Expenditures for the prior calendar month
pursuant to the terms and conditions of the related Approved Annual Budget;

                           (vii)    Seventh, from and including July 1, 2004
through and including June 1, 2007, to fund the Replacement/Leasing Escrow Fund
Sub-account, until the amount on deposit therein is equal to the Additional
Monthly Leasing Escrow Deposit on the related Payment Date in accordance with
the terms and conditions of paragraph 6(f) of the Deed of Trust, but subject to
paragraph 6(g) of the Deed of Trust, if applicable;

                           (viii)   Eighth, to fund the Operating Expense
Subaccount with any Extraordinary Expenses approved by Lender for the prior
calendar month, if any (such Rents as remain after the application of Rents in
accordance with items (i) through this item (vii), the "EXCESS CASH FLOW"):

                           (ix)     Ninth, from and including January 1, 2004
through and including December 1, 2006, to fund the US Bancorp TI/LC Escrow
Subaccount until the amount on

                                      -8-
<PAGE>

deposit therein is equal to the amount required to be deposited in the US
Bancorp Escrow Fund in accordance with paragraph 6(c) of the Deed of Trust;

                           (x)      Tenth, in the event that (A) an NOI Trigger
Event has occurred and is then continuing and (B) the Leasing Escrow Fund
Catch-Up Deposit is not then fully on deposit in the Replacement/Leasing Escrow
Fund Sub-account, to fund the Replacement/Leasing Escrow Fund Subaccount until
the amount on deposit therein is equal to the amount required to fund the
Leasing Escrow Fund Catch-Up Deposit on the related Payment Date in accordance
with the terms and conditions of the Deed of Trust, but subject to paragraph
6(g) of the Deed of Trust, if applicable;

                           (xi)     Eleventh, in the event that an NOI Trigger
Event has occurred and is then continuing, to fund on the Payment Date occurring
in January, 2005, an additional amount in the Replacement/Leasing Escrow Fund
Subaccount equal to the positive difference, if any, between (A) $8,800,000 and
(B) the amount then on deposit in the Replacement/Leasing Escrow Fund
Subaccount;

                           (xii)    Twelfth, in the event that an NOI Trigger
Event has occurred and is then continuing, to fund on the Payment Date occurring
in January, 2009, an additional amount in the Replacement/Leasing Escrow Fund
Subaccount equal to the positive difference, if any, between (A) $9,100,000 and
(B) the amount then on deposit in the Replacement/Leasing Escrow Fund
Subaccount;

                           (xiii)   Thirteenth, in the event that an NOI Trigger
Event has occurred and is then continuing, to fund on the Payment Date occurring
in January, 2010, an additional amount in the Replacement/Leasing Escrow Fund
Subaccount equal to the positive difference, if any, between (A) $6,800,000 and
(B) the amount then on deposit in the Replacement/Leasing Escrow Fund
Subaccount;

                           (xiv)    Fourteenth, to pay to the Junior Management
Fee Subaccount (as defined in the Cash Management Agreement) any compensation
then due to an affiliated property manager in excess of the amount permitted to
be paid pursuant to clause (v) above; and

                           (xv)     Lastly, to pay to the Borrower Remainder
Subaccount (as defined in the Cash Management Agreement) any excess amounts.

                  (b)      Nothing in this paragraph 10 shall limit, reduce or
otherwise affect Borrower's obligations to make payments of the Monthly Payment
Amount, payments to the Tax and Insurance Impound Fund, the Replacement/Leasing
Escrow Fund and any other amounts due hereunder and under the other Loan
Documents, whether or not Rents are available to make such payments.

                  (c)      Intentionally Omitted.

                  (d)      Not later than each December 15 during the term of
the Loan, Borrower shall submit to Lender a detailed budget (an "ANNUAL BUDGET")
for the Trust Property covering the calendar year commencing on the following
January 1, each of which budgets shall be subject to Lender's approval, not to
be unreasonably withheld, (provided that Borrower shall have the option to
submit to Lender a revised budget not later than June 30 of each year during the
term of the Loan to adjust such budget on the basis of the actual results of
Borrower to such

                                      -9-
<PAGE>

point in such calendar year) (each such budget, when so approved, is referred to
as an "APPROVED ANNUAL BUDGET"). Until such time that Lender approves a proposed
Annual Budget, Borrower may operate under the most recently Approved Annual
Budget (adjusted to reflect actual increases in real estate taxes, insurance
premiums, utilities expenses, labor costs, interest and other fixed costs with
respect to the ownership, operation and financing of the Trust Property).

                  11.      It is expressly stipulated and agreed to be the
intent of Borrower and Lender at all times to comply with applicable state law
or applicable United States federal law (to the extent that it permits Lender to
contract for, charge, take, reserve, or receive a greater amount of interest
than under state law) and that this paragraph (and the similar paragraph
contained in the Deed of Trust) shall control every other covenant and agreement
in this Note and the other Loan Documents. If the applicable law (state or
federal) is ever judicially interpreted so as to render usurious any amount
called for under this Note or under any of the other Loan Documents, or
contracted for, charged, taken, reserved, or received with respect to the Debt,
or if Lender's exercise of the option to accelerate the Maturity Date, or if any
prepayment by Borrower results in Borrower having paid any interest in excess of
that permitted by applicable law, then it is Lender's express intent that all
excess amounts theretofore collected by Lender shall be credited on the
principal balance of this Note (without any resulting prepayment penalty or
premium) and all other Debt and the provisions of this Note and the other Loan
Documents immediately be deemed reformed and the amounts thereafter collectible
hereunder and thereunder reduced, without the necessity of the execution of any
new documents, so as to comply with the applicable law, but so as to permit the
recovery of the fullest amount otherwise called for hereunder or thereunder. All
sums paid or agreed to be paid to Lender for the use, forbearance, or detention
of the Debt shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term of the Debt
until payment in full so that the rate or amount of interest on account of the
Debt does not exceed the maximum lawful rate from time to time in effect and
applicable to the Debt for so long as the Debt is outstanding. Notwithstanding
anything to the contrary contained herein or in any of the other Loan Documents,
it is not the intention of Lender to accelerate the maturity of any interest
that has not accrued at the time of such acceleration or to collect unearned
interest at the time of such acceleration.

                  12.      This Note may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought. Whenever used,
the singular number shall include the plural, the plural the singular, and the
words "LENDER" and "BORROWER" shall include their respective successors,
assigns, heirs, executors and administrators. If Borrower consists of more than
one person or party, the obligations and liabilities of each such person or
party shall be joint and several.

                  13.      Except as provided in the Loan Documents, Borrower
and all others who may become liable for the payment of all or any part of the
Debt do hereby severally waive presentment and demand for payment, notice of
dishonor, protest, notice of protest, notice of nonpayment, notice of intent to
accelerate the maturity hereof and of acceleration. No release of any security
for the Debt or any person liable for payment of the Debt, no extension of time
for payment of this Note or any installment hereof, and no alteration, amendment
or waiver of any

                                      -10-
<PAGE>

provision of the Loan Documents made by agreement between Lender and any other
person or party shall release, modify, amend, waive, extend, change, discharge,
terminate or affect the liability of Borrower, and any other person or party who
may become liable under the Loan Documents for the payment of all or any part of
the Debt.

                  14.      The provisions of paragraph 57 of the Deed of Trust
are hereby incorporated by reference as if fully set forth herein.

                  15.      (a) Any and all payments by Borrower to Lender
hereunder and under the other Loan Documents shall, provided that Lender
complies with the requirements of paragraph 15(c) hereof, be made free and clear
of, and without deduction for, any and all present or future taxes, levies,
imposts, deductions, charges, withholdings or liabilities with respect thereto,
except for the following, for which Borrower (and its direct or indirect members
or other constituent members or partners) shall not be responsible: (i) taxes
imposed on or measured by Lender's net income or net receipts; or (ii) franchise
taxes imposed on Lender by the jurisdiction in which (A) Lender is organized,
(B) Lender is "doing business" (unless such determination of "doing business" is
made solely as a result of Lender's interest in the Loan and the security
therefor), or (C) Lender's applicable lending office is located (all such taxes,
levies, imposts, deductions, charges or withholdings and liabilities (except
those described in the foregoing clauses (i) and (ii)) being hereinafter
referred to as "LOAN TAXES"). If Borrower shall be required by law to deduct or
withhold any Loan Taxes from or in respect of any sum payable hereunder or under
any other Loan Document, then (1) any such sum payable hereunder or under any
other Loan Document shall be increased as may be necessary so that after making
all required deductions or withholdings (including deductions applicable to
additional sums payable under this paragraph 15), Lender receives an amount
equal to the sum it would have received had no such deductions or withholdings
(including deductions applicable to additional sums payable under this paragraph
15) been made, (2) Borrower shall make such deductions or withholdings, and (3)
Borrower shall pay the full amount deducted or withheld to the relevant taxing
authority in accordance with applicable law. Borrower (but not its direct or
indirect members or other constituent members or partners) will indemnify Lender
for the full amount of any Loan Taxes (including, without limitation, any Loan
Taxes (as well as taxes described in clauses (i) and (ii) of the second
preceding sentence) imposed by any jurisdiction on any amounts payable under
this paragraph 15) paid or payable by Lender and any liability (including,
without limitation, penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not such Loan Taxes were correctly or legally
asserted. A certificate as to the amount of such payment or liability delivered
to Borrower by Lender shall be conclusive absent manifest error. The agreements
and obligations of Borrower contained in this paragraph 15 shall survive the
payment in full of principal and interest under this Note.

                  (b)      Within thirty (30) days after the date of any payment
of Loan Taxes withheld by Borrower in respect of any payment to Lender, Borrower
will furnish to Lender the original or a certified copy of a receipt or other
evidence satisfactory to Lender evidencing payment thereof.

                  (c)      If Lender is a U.S. Person (other than the Lender
originally named herein), Lender shall deliver to Borrower, upon request, a Form
W-9 (unless it establishes to the reasonable satisfaction of Borrower that it is
otherwise eligible for an exemption from backup withholding tax or other
withholding tax). If Lender is not a U.S. Person, Lender shall deliver to
Borrower, upon request, (a) two duly completed and signed copies of either
Internal Revenue

                                      -11-
<PAGE>

Service Form W-8BEN (claiming an exemption from or a reduction in United States
withholding tax under an applicable treaty) or its successor form or Form W-8ECI
(claiming an exemption from United States withholding tax as effectively
connected income) or its successor form and related applicable forms, as the
case may be; or (b) in the case of a foreign Lender that is not a "bank" within
the meaning of Section 881(c)(3)(A) of the Code and that cannot comply with the
requirements of clause (a) above, (x) a statement to the effect that such Lender
is eligible for a complete exemption from withholding of United States Taxes
under Section 871(h) or 881(c) of the Code, and (y) two duly completed and
signed copies of Internal Revenue Service Form W-8BEN or successor and related
applicable forms. If Lender is not a U.S. Person, Lender further undertakes to
deliver to Borrower additional forms described in clause (a) or (b) of the
preceding sentence (or any successor forms) or other manner of certification, as
the case may be, (A) on or before the date that any such form expires or becomes
obsolete, (B) after the occurrence of any event requiring a change in the most
recent form previously delivered by it to Borrower, and (C) such extensions or
renewals thereof as may reasonably be requested by Borrower, certifying that
Lender is entitled to receive payments hereunder without deduction or
withholding of any Loan Taxes. However, in the event that any change in law,
rule, regulation, treaty or directive, or in the interpretation or application
thereof (a "LAW CHANGE"), has occurred prior to the date on which any delivery
pursuant to the preceding sentence would otherwise be required which renders
such form inapplicable, or which would prevent Lender from duly completing and
delivering any such form, or if such Law Change results in Lender being unable
to deliver a Form W-9 (or other satisfactory evidence that it is otherwise
eligible for an exemption from backup withholding tax or other withholding tax),
Lender shall not be obligated to deliver such forms but shall, promptly
following such Law Change, but in any event prior to the time the next payment
hereunder is due following such Law Change, advise Borrower in writing whether
it is capable of receiving payments without any deduction or withholding of Loan
Taxes, hi the event of such Law Change, Borrower shall have the obligation to
make Lender whole and to "gross-up" under paragraph 15(a) hereof, despite the
failure by Lender to deliver such forms.

                  (d)      If Lender receives a refund in respect of Loan Taxes
paid by Borrower, it shall promptly pay such refund, together with any other
amounts paid by Borrower pursuant to paragraph 15(a) hereof in connection with
such refunded Loan Taxes, to Borrower; provided, however, that Borrower agrees
to promptly return such refund to Lender if it receives notice from Lender that
it is required to repay such refund. Nothing contained herein shall be construed
to require Lender to seek any refund and Lender shall have no obligation to
Borrower to do so.

                  (e)      All amounts payable under this paragraph 15 shall
constitute additional interest hereunder and shall be secured by the Deed of
Trust and the other Loan Documents. The provisions of this paragraph 15 shall
survive any payment or prepayment of the Loan and any foreclosure or
satisfaction of the Deed of Trust.

                  16.      Borrower represents that Borrower has full power,
authority and legal right to execute, deliver and perform its obligations
pursuant to this Note, the Deed of Trust and the other Loan Documents and that
this Note, the Deed of Trust and the other Loan Documents constitute valid and
binding obligations of Borrower subject only to bankruptcy laws, general
principals of equity, insolvency, reorganization, arrangement, moratorium,
receivership or other similar laws relating to or affecting the rights of
creditors.

                                      -12-
<PAGE>
     17.  All notices or other communications required or permitted to be given
pursuant hereto shall be given in the manner specified in the Deed of Trust
directed to the parties at their respective addresses as provided therein.

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

     19.  (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE
BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS
OF THIS NOTE WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES
AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING
TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD
TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF
AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION,
AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT TO THE
LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE
STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE
FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW
YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN
DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE
FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS NOTE, AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW.

          (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER
ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER'S OPTION BE
INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW
YORK PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND
BORROWER WAIVES ANY

                                      -13-

<PAGE>
OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON
CONVENIENS OR ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT CORPORATION TRUST
COMPANY, 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011 AS ITS AUTHORIZED AGENT TO
ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE
SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN
NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID
ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN
THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON BORROWER, IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF
NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS
OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK
(WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS
FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF
ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS
DISSOLVED WITHOUT LEAVING A SUCCESSOR.

     20. APPLICATION OF PAYMENTS. This note, together with Substitute Promissory
Note A-2, is Note A referred to in the Deed of Trust. Unless otherwise expressly
provided in this Note or elected by Lender, payments made by Borrower in respect
of the principal and interest of the Loan shall be applied to interest and
principal due on this Note and Substitute Promissory Note A-2, pro-rata.

     21. Borrower, and by its acceptance hereof, Lender, agrees that this Note
is made by Borrower and accepted by Lender, pursuant to that certain Note
Splitter Agreement, Modification of Loan Documents and Reaffirmation of Guaranty
dated the date hereof, together with Substitute Promissory Note A-2 in
substitution and replacement of that certain Deed of Trust Note made by Borrower
in favor of Lender in the original principal amount of $260,000,000.00, dated
June 26, 2003 (the "ORIGINAL NOTE"), on which Original Note there is now
outstanding the aggregate principal amount of $260,000,000.00 and Borrower, and
by its acceptance hereof, Lender, agrees that this Note, together with
Substitute Promissory Note A-2, evidences the same indebtedness evidenced by the
Original Note and does not create or evidence any new or additional
indebtedness.

                         [NO FURTHER TEXT ON THIS PAGE]

                                      -14-
<PAGE>

              IN WITNESS WHEREOF, Borrower has caused this Note to be executed
and delivered as of the day and year first above written.

                         BORROWER:

                         LIBRARY SQUARE ASSOCIATES, LLC,
                         a Delaware limited liability company

                         By: Bunker Hill Senior Mezzanine, LLC,
                             a Delaware limited liability company,
                             its sole member

                             By: Bunker Hill Junior Mezzanine, LLC,
                                 a Delaware limited liability company,
                                 its sole member

                                 By: New BHE, LLC,
                                     a Delaware limited liability company,
                                     its sole member

                                     By: Maguire Properties, L.P.,
                                         a Maryland limited partnership,
                                         its sole member

                                         By: Maguire Properties, Inc.,
                                             a Maryland corporation,
                                             its sole general partner

                                             By:/s/ ILLEGIBLE
                                                -------------
                                                Name:
                                                Title:

<PAGE>

                         SUBSTITUTE PROMISSORY NOTE A-2

$129,740,000.00                                                    June 26, 2003

                  1.       For value received, LIBRARY SQUARE ASSOCIATES, LLC, a
Delaware limited liability company, having its principal place of business at
555 West Fifth Street, Suite 5000, Los Angeles, California 90013 ("BORROWER")
promises to pay to the order of GREENWICH CAPITAL FINANCIAL PRODUCTS, INC, a
Delaware corporation ("LENDER") at its principal office at 600 Steamboat Road,
Greenwich, Connecticut 06830, or at such place as the holder hereof may from
time to time designate in writing, the principal sum of ONE HUNDRED TWENTY-NINE
MILLION SEVEN HUNDRED FORTY THOUSAND and No/100 Dollars ($129,740,000.00), in
lawful money of the United States of America, with interest thereon to be
computed on the unpaid principal balance from time to time outstanding at a
fixed rate per annum equal to 4.66% (the "INTEREST RATE").

                  2.       Principal and interest under this Substitute
Promissory Note A-2 (this "NOTE") shall be paid by Borrower as follows:

                    A.     A payment of interest only on the date hereof for the
interest accrual period from the date hereof to and including June 30, 2003; and

                    B.     Commencing on August 1, 2003 and on each Payment Date
(as hereinafter defined) thereafter through and including the Maturity Date,
Borrower shall pay to Lender a monthly amount equal to interest only on the
outstanding principal balance of the Loan that accrued during the prior
Collection Period (as defined in the Cash Management Agreement) (such amount
hereinafter the "MONTHLY PAYMENT AMOUNT"), and the balance of the principal sum
of this Note together with unpaid interest hereon shall be due and payable on
the Maturity Date.

                    C.     Interest on the principal sum of this Note shall be
calculated on the basis of the actual number of days elapsed and a three hundred
sixty (360) day year. In computing the number of days during which interest
accrues, the day on which funds are initially advanced shall be included
regardless of the time of day such advance is made. All amounts due under this
Note shall be payable without setoff, counterclaim or any other deduction
whatsoever.

                  3.       As used in this Note:

                    (a)    The term "ANNUAL BUDGET" shall mean an annual budget
submitted by Borrower to Lender in accordance with the terms of paragraph 10(d)
herein.

                    (b)    The term "APPROVED ANNUAL BUDGET" shall have the
meaning set forth in paragraph 10(d) hereof.

                    (c)    The term "ASSIGNMENT OF LEASES" shall mean that
certain Assignment of Leases and Rents of even date herewith executed by
Borrower in favor of Lender.

<PAGE>

                    (d)    The term "BUSINESS DAY" shall mean any day except a
Saturday, Sunday or other day on which commercial banks are required or
permitted by law to close in New York City.

                    (e)    The term "CAPITAL EXPENDITURES" shall mean for any
period, the amount expended for items capitalized under generally accepted
accounting principles including expenditures for building improvements or major
repairs, leasing commissions and tenant improvements.

                    (f)    The term "CASH EXPENSES" shall mean for any period,
the operating expenses for the Trust Property as set forth in an Approved Annual
Budget to the extent that such expenses are actually incurred by Borrower minus
payments into the Tax and Insurance Impound Fund and the Replacement/Leasing
Escrow Fund.

                    (g)    The term "CODE" shall mean the Internal Revenue Code
of 1986, as amended.

                    (h)    The term "DEBT" shall mean the whole of the principal
sum of this Note, together with all interest accrued or due and unpaid thereon
and all other sums due under the Loan Documents.

                    (i)    The term "DEED OF TRUST" shall mean that certain Deed
of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing
of even date herewith in the aggregate amount of this Note given by Borrower for
the use and benefit of Lender covering the fee estate of certain premises as
more particularly described therein.

                    (j)    The term "DEFAULT RATE" shall mean, a rate per annum
which is equal to the lesser of (i) the maximum rate permitted by applicable
law, or (ii) five percent (5%) above the Interest Rate.

                    (k)    The term "DEFEASANCE COLLATERAL" shall mean U.S.
Obligations which provide payments (i) on or prior to, but as close as possible
to, all Payment Dates under this Note after the Defeasance Date and up to and
including the Maturity Date, and (ii) in amounts equal to or greater than the
Scheduled Defeasance Payments.

                    (1)    The term "EXTRAORDINARY EXPENSE" shall mean an
extraordinary operating expense or capital expense not set forth in the Approved
Annual Budget or allotted for in the Replacement/Leasing Escrow Fund.

                    (m)    The term "LOAN" shall mean that certain loan in the
original principal amount of $260,000,000 made by Lender to Borrower as
evidenced by this Note and Substitute Promissory Note A-l (as hereinafter
defined) and secured inter alia by the Deed of Trust.

                    (n)    The term "LOAN DOCUMENTS" shall mean collectively
this Note, the Deed of Trust, the Assignment of Leases and any and all other
documents securing, evidencing, or guaranteeing all or any portion of the Loan
or otherwise executed and/or delivered in connection with this Note and the
Loan.

                                      -2-
<PAGE>

                    (o)    The term "MATURITY DATE" shall mean July 1, 2013,
provided that, in the event that the Loan is accelerated pursuant to the terms
of this Note or the other Loan Documents, the Maturity Date shall be the date of
such acceleration.

                    (p)    The term "NET CAPITAL EXPENDITURES" shall mean for
any period the amount by which Capital Expenditures during such period exceeds
reimbursements for such items during such period from any fund established
pursuant to the Loan Documents.

                    (q)    The term "NOTES" shall mean, collectively, this Note
and Substitute Promissory Note A-l.

                    (r)    The term "PAYMENT DATE" shall mean the first (1st)
day of each calendar month during the term of the Loan; provided, however that
if the first (1st) day of any given month is not a Business Day, then amounts
due on the Payment Date for such month shall be due on the immediately
succeeding Business Day.

                    (s)    The term "RELEASE DATE" shall mean the earlier to
occur of (i) July 1, 2006 and (ii) the date that is two (2) years from the
"startup day" (within the meaning of Section 860G(a)(9) of the Code) of the
REMIC Trust established in connection with the last Securitization involving any
portion of this Loan.

                    (t)    The term "REMIC TRUST" shall mean a "real estate
mortgage investment conduit" within the meaning of Section 860D of the Code that
holds this Note.

                    (u)    The term "SCHEDULED DEFEASANCE PAYMENTS" shall mean
the Monthly Payment Amount required under the Notes for all Payment Dates
occurring after the Defeasance Date (including, on the Maturity Date, the
remaining outstanding principal balance on the Notes as of the Maturity Date).

                    (v)    "SUBSTITUTE PROMISSORY NOTE A-L" shall mean that
Substitute Promissory Note A-l dated as of the date hereof made by Borrower to
Lender in the principal amount of $130,260,000.

                    (w)    The term "U.S. OBLIGATIONS" shall mean direct full
faith and credit obligations of the United States of America that are not
subject to prepayment, call or early redemption or such other obligations
(designated by Borrower) of the United States of America or another Person that
the Rating Agencies have confirmed, or shall confirm, in writing will not, in
and of themselves, result in a downgrade, withdrawal or qualification of the
initial, or, if higher, then current ratings assigned in connection with any
securitization of the Loan.

                    (x)    The term "YIELD MAINTENANCE PREMIUM" shall mean an
amount which, when added to the outstanding principal amount of the Loan, would
be sufficient to purchase U.S. Obligations which provide payments (a) on or
prior to, but as close as possible to, all successive scheduled Payment Dates
under the Notes arising from and after the date of determination of such Yield
Maintenance Premium through the Maturity Date and (b) in amounts equal to the
Monthly Payment Amount required under the Notes through the Maturity Date,
together with the outstanding principal balance of the Notes as of the Maturity
Date assuming all such Monthly Payments are made (including any servicing costs
associated therewith), in all cases without duplication among this Note and
Substitute Promissory Note A-l. In no event shall the Yield Maintenance Premium
be less than zero.

                                      -3-
<PAGE>

                  All capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to such terms in the Deed of Trust.

                  4.       The outstanding principal balance of this Note shall
bear interest throughout the term of the Loan at the Interest Rate as set forth
herein.

                  5.       (a) This Note shall mature on the Maturity Date, at
which time the entire Loan shall be due and payable.

                    (b)    If any sum payable under this Note is not paid on or
before the date on which it is due, Borrower shall pay to Lender upon demand an
amount equal to the lesser of five percent (5%) of such unpaid sum or the
maximum amount permitted by applicable law in order to defray a portion of the
expenses incurred by Lender in handling and processing such delinquent payment
and to compensate Lender for the loss of the use of such delinquent payment. If
the day when any payment required under this Note is due is not a Business Day,
then payment shall be due on the immediately succeeding Business Day.

                  6.       The Debt or any portion thereof shall without notice
become immediately due and payable at the option of Lender upon the happening of
any Event of Default. In the event that it should become necessary to employ
counsel to collect or enforce the Debt or to protect or foreclose the security
therefor, Borrower also shall pay on demand all costs of collection incurred by
Lender, including attorneys' fees and costs reasonably incurred for the services
of counsel whether or not suit be brought.

                  7.       Borrower does hereby agree that upon the occurrence
and during the continuance of an Event of Default (including upon the failure of
Borrower to pay the Debt in full on the Maturity Date), Lender shall be entitled
to receive and Borrower shall pay interest on the entire unpaid principal sum
and any other amounts due at the Default Rate.

                  8.       This Note, together with Substitute Promissory Note
A-l, is evidence of the Loan and of the obligation of the Borrower to repay the
Loan in accordance with the terms thereof. This Note is secured inter alia by
(i) the Deed of Trust, (ii) an Assignment of Leases, and (iii) the other Loan
Documents.

                  9.       (a) Borrower expressly waives any right to prepay the
Loan, in whole or in part, except as hereinafter provided.

                    (b)    Notwithstanding anything herein or in any other Loan
Documents to the contrary, except if expressly required or permitted under any
Loan Document (including as a result of any of the prepayment events specified
in paragraph 4(f) of the Deed of Trust), Borrower may not voluntarily prepay the
Loan, in whole or in part, prior to the Payment Date occurring in April, 2013
(the "LOCK OUT DATE"). From and after the Lock Out Date, Borrower shall have the
right to prepay all or any portion of the Loan provided that Borrower gives
Lender at least 15 days' prior written notice thereof. If any such prepayment is
not made on a Payment Date, Borrower shall also pay interest that would have
accrued on such prepaid amount to, but not including, the next Payment Date. Any
such prepayment shall be made without payment of the Yield Maintenance Premium.
All proceeds of a voluntary prepayment of the Loan made by Borrower in respect
of the principal and interest of the Loan shall be applied to interest and
principal due on this Note and Substitute Promissory Note A-l, pro-rata.

                                      -4-
<PAGE>

                  (c)      Provided no Event of Default shall be continuing,
Borrower shall have the right on any Payment Date after the Release Date and
prior to the Lock Out Date to voluntarily defease the entire principal amount of
the Loan and obtain a release of the Lien of the Deed of Trust by providing
Lender with the Defeasance Collateral (a "DEFEASANCE EVENT"), subject to the
satisfaction of the following conditions precedent:

                           (i)      Borrower shall give Lender not less than
thirty (30) days prior written notice specifying a date (the "DEFEASANCE DATE")
on which the Defeasance Event is to occur.

                           (ii)     Borrower shall pay to Lender (A) all
payments of principal (if any) and interest due on the Loan to and including the
Defeasance Date and (B) all other sums, then due under this Note, the Deed of
Trust and the other Loan Documents;

                           (iii)    Borrower shall deposit the Defeasance
Collateral into the Defeasance Collateral Account and otherwise comply with the
provisions of subsections (d) and (e) of this Paragraph 9;

                           (iv)     Borrower shall execute and deliver to Lender
a Security Agreement in respect of the Defeasance Collateral Account and the
Defeasance Collateral;

                           (v)      Borrower shall deliver or cause to be
delivered to Lender an opinion or opinions of counsel for Borrower that is
standard in commercial lending transactions and subject only to customary
qualifications, assumptions and exceptions opining, among other things, that (i)
Lender has a legal and valid perfected security interest in the Defeasance
Collateral Account and the Defeasance Collateral, (ii) if a securitization has
occurred, the REMIC Trust formed pursuant to such securitization will not fail
to maintain its status as a "real estate mortgage investment conduit" within the
meaning of Section 860D of the Code as a result of a Defeasance Event pursuant
to this Paragraph 9, (iii) delivery of the Defeasance Collateral and the grant
of a security interest therein to Lender shall not constitute an avoidable
preference under Section 547 of the Bankruptcy Code or applicable state law
(assuming the Debt is fully secured) and (iv) a non-consolidation opinion with
respect to the Successor Borrower;

                           (vi)     Borrower shall deliver to Lender a letter
issued by each of the applicable Rating Agencies (as defined in the Cash
Management Agreement) which confirms that the taking of the action referenced
therein will not result in any qualification, withdrawal or downgrading of any
existing ratings of securities created in a Securitization;

                           (vii)    Borrower shall deliver a certificate to
Lender which is signed by a senior executive officer of Borrower, or an entity
that directly or indirectly controls the management of Borrower, certifying that
the requirements set forth in this Paragraph 9 have been satisfied;

                           (viii)   Borrower shall deliver a letter of a "big
four" or other nationally recognized public accounting firm acceptable to Lender
confirming that the Defeasance Collateral will generate monthly amounts equal to
or greater than the Scheduled Defeasance Payments;

                           (ix)     Borrower shall deliver such other
certificates, opinions, documents and instruments as Lender may reasonably
request;

                                      -5-
<PAGE>

                           (x)      Borrower shall pay all reasonable costs and
expenses of Lender incurred in connection with the Defeasance Event, including
Lender's reasonable attorneys' fees and expenses and Rating Agency fees and
expenses; and

                           (xi)     Borrower shall simultaneously defease
Substitute Promissory Note A-l in accordance with the provisions thereof.

                  (d)      On or before the date on which Borrower delivers the
Defeasance Collateral, Borrower shall open at any Eligible Institution (as
defined in the Cash Management Agreement) the defeasance collateral account (the
"DEFEASANCE COLLATERAL ACCOUNT") which shall at all times be an Eligible Account
(as defined in the Cash Management Agreement). The Defeasance Collateral Account
shall contain only (i) Defeasance Collateral, and (ii) cash from interest and
principal paid on the Defeasance Collateral. All cash from interest and
principal payments paid on the Defeasance Collateral up to the Monthly Payment
Amount shall be paid over to Lender on each Payment Date and applied to accrued
and unpaid interest; provided that prior to any such Payment Date, all cash from
interest and principal payments paid on the Defeasance Collateral may be
invested in Permitted Investments selected by Borrower. Any cash from interest
and principal paid on the Defeasance Collateral not needed to pay accrued and
unpaid interest shall be retained in the Defeasance Collateral Account as
additional collateral for the Loan and may be invested in Permitted Investments
selected by Borrower. Borrower shall cause the Eligible Institution at which the
Defeasance Collateral is deposited to enter into an agreement with Borrower and
Lender, satisfactory to Lender in its sole discretion, pursuant to which such
Eligible Institution shall agree to hold and distribute the Defeasance
Collateral in accordance with this Note. The Successor Borrower shall be the
owner of the Defeasance Collateral Account and shall report all income accrued
on Defeasance Collateral for federal, state and local income tax purposes in its
income tax return. Borrower shall prepay all cost and expenses associated with
opening and maintaining the Defeasance Collateral Account. Lender shall not in
any way be liable by reason of any insufficiency in the Defeasance Collateral
Account.

                  (e)      In connection with a Defeasance Event under this
Paragraph 9, Borrower shall, if required by the Rating Agencies or if Borrower
elects to do so, establish or designate a successor entity (the "SUCCESSOR
BORROWER") which shall be a Special Purpose Bankruptcy Remote Entity and which
shall be approved by the Rating Agencies. Any such Successor Borrower may, at
Borrower's option, be an Affiliate of Borrower unless the Rating Agencies shall
require otherwise. Borrower shall transfer and assign all obligations, rights
and duties under and to this Note, together with the Defeasance Collateral to
such Successor Borrower. Such Successor Borrower shall assume the obligations
under this Note and the Security Agreement and Borrower shall be relieved of its
obligations under such documents and the Loan Documents (except for any
environmental indemnities or other obligations that survive repayment of the
Loan). Borrower shall pay a minimum of $1,000 to any such Successor Borrower as
consideration for assuming the obligations under this Note and the Security
Agreement. Borrower shall pay all costs and expenses incurred by Lender,
including Lender's reasonable attorney's fees and expenses, incurred in
connection therewith.

                  (f)      Mandatory prepayments made in connection with the
application pursuant to the Deed of Trust of insurance proceeds or condemnation
awards shall be paid in the amounts and at the times specified in the Deed of
Trust, and, notwithstanding anything herein to the contrary, provided that no
Event of Default has occurred and is continuing no Yield Maintenance

                                      -6-
<PAGE>

Premium or other premium shall be due or payable in connection with any such
mandatory prepayment whenever paid.

                  (g)      Except as otherwise expressly provided in paragraph
9(f) hereof, the Yield Maintenance Premium shall be due, to the extent permitted
by applicable law, under any and all circumstances where all or any portion of
the Loan is paid prior to the Lock Out Date as a result of an involuntary
prepayment or a voluntary prepayment, even if such prepayment results from
Lender's exercise of its rights upon Borrower's default and acceleration o f the
Maturity Date (irrespective of whether foreclosure proceedings have been
commenced), and shall be in addition to any other fees or sums due hereunder or
under any of the other Loan Documents. THE YIELD MAINTENANCE PREMIUM REQUIRED BY
THIS SUBPARAGRAPH 9 is ACKNOWLEDGED BY BORROWER TO BE PARTIAL COMPENSATION TO
LENDER FOR THE COST OF REINVESTING THE LOAN PROCEEDS AND FOR THE LOSS OF THE
CONTRACTED RATE OF RETURN ON THE LOAN. FURTHERMORE, BORROWER ACKNOWLEDGES THAT
THE LOSS THAT MAY BE SUSTAINED BY LENDER AS A RESULT OF SUCH PREPAYMENT BY
BORROWER IS NOT SUSCEPTIBLE OF PRECISE CALCULATION AND THE YIELD MAINTENANCE
PREMIUM REPRESENTS THE GOOD FAITH EFFORT OF BORROWER AND LENDER TO COMPENSATE
LENDER FOR SUCH LOSS. EXCEPT AS EXPRESSLY PERMITTED IN THIS PARAGRAPH 9,
BORROWER EXPRESSLY WAIVES ALL RIGHTS IT MAY HAVE UNDER CALIFORNIA CIVIL
CODE SECTION 2954.10 (OR OTHERWISE) TO PREPAY THE LOAN PRIOR TO THE LOCK OUT
DATE, IN WHOLE OR IN PART, WITHOUT PENALTY, WHETHER VOLUNTARILY OR UPON
ACCELERATION OF THE MATURITY DATE OF THE LOAN, AND AGREES THAT IF, FOR ANY
REASON A PREPAYMENT OF ALL OR ANY OF THE LOAN IS MADE PRIOR TO THE LOCK OUT
DATE, WHETHER VOLUNTARILY OR UPON OR FOLLOWING ANY ACCELERATION OF THE MATURITY
DATE OF THE LOAN BY LENDER ON ACCOUNT OF ANY DEFAULT BY BORROWER UNDER ANY LOAN
DOCUMENT, THEN BORROWER SHALL BE OBLIGATED TO PAY, CONCURRENTLY THEREWITH, THE
YIELD MAINTENANCE PREMIUM SPECIFIED ABOVE. BY INITIALING THIS PROVISION IN THE
SPACE PROVIDED BELOW, BORROWER DECLARES THAT LENDER'S AGREEMENT TO MAKE THE LOAN
AT THE INTEREST RATE AND ON THE OTHER TERMS SET FORTH HEREIN CONSTITUTES
ADEQUATE AND VALUABLE CONSIDERATION, GIVEN INDIVIDUAL WEIGHT BY BORROWER, FOR
THIS WAIVER AND AGREEMENT.

                                  /s/ ILLEGIBLE
                                  -------------
                                    INITIALS

                  10.      (a) Borrower, Lender and Maguire Properties, L.P., as
manager, have entered into the Cash Management Agreement dated the date hereof.
Borrower shall cause all Rents to be deposited in the Clearing Account (as
defined in the Cash Management Agreement) pursuant to the Cash Management
Agreement. All Rents deposited in the Cash Collateral Account (as defined in the
Cash Management Agreement) shall be allocated to the sub-accounts established
pursuant to, and as defined in, the Cash Management Agreement in the following
order of priority:

                                      -7-
<PAGE>

                  (i)      First, to fund the Tax and Insurance Impound Fund
Subaccount (as defined in the Cash Management Agreement) until the amount on
deposit therein is equal to the amount required to be deposited in the Tax and
Insurance Impound Fund on the related Payment Date in accordance with the terms
and conditions of the Deed of Trust;

                  (ii)     Second, to fund the Monthly Debt Service Subaccount
(as defined in the Cash Management Agreement) until the amount on deposit
therein is equal to the Monthly Payment Amount covered in Note A-1;

                  (iii)    Third, to fund the Monthly Debt Service Subaccount
with any other amounts due to the Lender under the Loan Documents not otherwise
addressed by this paragraph 10;

                  (iv)     Fourth, in the event that (A) an NOI Trigger Event
has occurred and is then continuing and (B) the Leasing Escrow Fund Catch-Up
Deposit is then fully on deposit in the Replacement/Leasing Escrow Fund
Sub-account (as defined in the Cash Management Agreement), to fund the
Replacement/Leasing Escrow Fund Subaccount until the amount on deposit therein
is equal to the sum of the Monthly Replacement Escrow Amount and the Monthly
Leasing Escrow Deposit on the related Payment Date in accordance with the terms
and conditions of the Deed of Trust, but subject to paragraph 6(g) of the Deed
of Trust, if applicable;

                  (v)      Fifth, to fund the Operating Expense Subaccount (as
defined in the Cash Management Agreement) until the amount on deposit therein is
equal to the sum of (A) the Cash Expenses for the prior calendar month pursuant
to the terms and conditions of the related Approved Annual Budget (as such
Approved Annual Budget may be adjusted in accordance with paragraph 10(d)
below), (B) any additional amount for Cash Expenses requested pursuant to and in
accordance with Section 6(e) of the Cash Management Agreement and (C) any
additional amount (if any) that, after taking into account funds deposited in
the Operating Expense Subaccount pursuant to clauses (A) and (B) above, causes
the amount on deposit in such Operating Expense Subaccount to equal the
Operating Account Balance Floor (as defined in the Cash Management Agreement);
provided, however, in no event shall any amounts be funded in the Operating
Expense Subaccount pursuant to this clause (v) to the extent that such amounts
represent any compensation due to an affiliated property manager in excess of
$1,000,000 for the then existing calendar year;

                  (vi)     Sixth, to fund the Operating Expense Subaccount with
any Net Capital Expenditures for the prior calendar month pursuant to the terms
and conditions of the related Approved Annual Budget;

                  (vii)    Seventh, from and including July 1, 2004 through and
including June 1, 2007, to fund the Replacement/Leasing Escrow Fund Sub-account,
until the amount on deposit therein is equal to the Additional Monthly Leasing
Escrow Deposit on the related Payment Date in accordance with the terms and
conditions of paragraph 6(f) of the Deed of Trust, but subject to paragraph 6(g)
of the Deed of Trust, if applicable;

                  (viii)   Eighth, to fund the Operating Expense Subaccount with
any Extraordinary Expenses approved by Lender for the prior calendar month, if
any (such Rents as

                                       -8-
<PAGE>

remain after the application of Rents in accordance with items (i) through this
item (vii), the "EXCESS CASH FLOW");

                  (ix)     Ninth, from and including January 1, 2004 through and
including December 1, 2006, to fund the US Bancorp TI/LC Escrow Subaccount until
the amount on deposit therein is equal to the amount required to be deposited in
the US Bancorp Escrow Fund in accordance with paragraph 6(c) of the Deed of
Trust;

                  (x)      Tenth, in the event that (A) an NOI Trigger Event has
occurred and is then continuing and (B) the Leasing Escrow Fund Catch-Up Deposit
is not then fully on deposit in the Replacement/Leasing Escrow Fund Sub-account,
to fund the Replacement/Leasing Escrow Fund Subaccount until the amount on
deposit therein is equal to the amount required to fund the Leasing Escrow Fund
Catch-Up Deposit on the related Payment Date in accordance with the terms and
conditions of the Deed of Trust, but subject to paragraph 6(g) of the Deed of
Trust, if applicable;

                  (xi)     Eleventh, in the event that an NOI Trigger Event has
occurred and is then continuing, to fund on the Payment Date occurring in
January, 2005, an additional amount in the Replacement/Leasing Escrow Fund
Subaccount equal to the positive difference, if any, between (A) $8,800,000 and
(B) the amount then on deposit in the Replacement/Leasing Escrow Fund
Subaccount;

                  (xii)    Twelfth, in the event that an NOI Trigger Event has
occurred and is then continuing, to fund on the Payment Date occurring in
January, 2009, an additional amount in the Replacement/Leasing Escrow Fund
Subaccount equal to the positive difference, if any, between (A) $9,100,000 and
(B) the amount then on deposit in the Replacement/Leasing Escrow Fund
Subaccount;

                  (xiii)   Thirteenth, in the event that an NOI Trigger Event
has occurred and is then continuing, to fund on the Payment Date occurring in
January, 2010, an additional amount in the Replacement/Leasing Escrow Fund
Subaccount equal to the positive difference, if any, between (A) $6,800,000 and
(B) the amount then on deposit in the Replacement/Leasing Escrow Fund
Subaccount;

                  (xiv)    Fourteenth, to pay to the Junior Management Fee
Subaccount (as defined in the Cash Management Agreement) any compensation then
due to an affiliated property manager in excess of the amount permitted to be
paid pursuant to clause (v) above; and

                  (xv)     Lastly, to pay to the Borrower Remainder Subaccount
(as defined in the Cash Management Agreement) any excess amounts.

           (b)    Nothing in this paragraph 10 shall limit, reduce or otherwise
affect Borrower's obligations to make payments of the Monthly Payment Amount,
payments to the Tax and Insurance Impound Fund, the Replacement/Leasing Escrow
Fund and any other amounts due hereunder and under the other Loan Documents,
whether or not Rents are available to make such payments.

           (c)    Intentionally Omitted.

                                       -9-
<PAGE>

           (d)    Not later than each December 15 during the term of the Loan,
Borrower shall submit to Lender a detailed budget (an "ANNUAL BUDGET") for the
Trust Property covering the calendar year commencing on the following January 1,
each of which budgets shall be subject to Lender's approval, not to be
unreasonably withheld, (provided that Borrower shall have the option to submit
to Lender a revised budget not later than June 30 of each year during the term
of the Loan to adjust such budget on the basis of the actual results of Borrower
to such point in such calendar year) (each such budget, when so approved, is
referred to as an "APPROVED ANNUAL BUDGET"). Until such time that Lender
approves a proposed Annual Budget, Borrower may operate under the most recently
Approved Annual Budget (adjusted to reflect actual increases in real estate
taxes, insurance premiums, utilities expenses, labor costs, interest and other
fixed costs with respect to the ownership, operation and financing of the Trust
Property).

         11.      It is expressly stipulated and agreed to be the intent of
Borrower and Lender at all times to comply with applicable state law or
applicable United States federal law (to the extent that it permits Lender to
contract for, charge, take, reserve, or receive a greater amount of interest
than under state law) and that this paragraph (and the similar paragraph
contained in the Deed of Trust) shall control every other covenant and agreement
in this Note and the other Loan Documents. If the applicable law (state or
federal) is ever judicially interpreted so as to render usurious any amount
called for under this Note or under any of the other Loan Documents, or
contracted for, charged, taken, reserved, or received with respect to the Debt,
or if Lender's exercise of the option to accelerate the Maturity Date, or if any
prepayment by Borrower results in Borrower having paid any interest in excess of
that permitted by applicable law, then it is Lender's express intent that all
excess amounts theretofore collected by Lender shall be credited on the
principal balance of this Note (without any resulting prepayment penalty or
premium) and all other Debt and the provisions of this Note and the other Loan
Documents immediately be deemed reformed and the amounts thereafter collectible
hereunder and thereunder reduced, without the necessity of the execution of any
new documents, so as to comply with the applicable law, but so as to permit the
recovery of the fullest amount otherwise called for hereunder or thereunder. All
sums paid or agreed to be paid to Lender for the use, forbearance, or detention
of the Debt shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term of the Debt
until payment in full so that the rate or amount of interest on account of the
Debt does not exceed the maximum lawful rate from time to time in effect and
applicable to the Debt for so long as the Debt is outstanding. Notwithstanding
anything to the contrary contained herein or in any of the other Loan Documents,
it is not the intention of Lender to accelerate the maturity of any interest
that has not accrued at the time of such acceleration or to collect unearned
interest at the time of such acceleration.

         12.      This Note may not be modified, amended, waived, extended,
changed, discharged or terminated orally or by any act or failure to act on the
part of Borrower or Lender, but only by an agreement in writing signed by the
party against whom enforcement of any modification, amendment, waiver,
extension, change, discharge or termination is sought. Whenever used, the
singular number shall include the plural, the plural the singular, and the words
"LENDER" and "BORROWER" shall include their respective successors, assigns,
heirs, executors and administrators. If Borrower consists of more than one
person or party, the obligations and liabilities of each such person or party
shall be joint and several.

                                      -10-
<PAGE>

         13.      Except as provided in the Loan Documents, Borrower and all
others who may become liable for the payment of all or any part of the Debt do
hereby severally waive presentment and demand for payment, notice of dishonor,
protest, notice of protest, notice of nonpayment, notice of intent to accelerate
the maturity hereof and of acceleration. No release of any security for the Debt
or any person liable for payment of the Debt, no extension of time for payment
of this Note or any installment hereof, and no alteration, amendment or waiver
of any provision of the Loan Documents made by agreement between Lender and any
other person or party shall release, modify, amend, waive, extend, change,
discharge, terminate or affect the liability of Borrower, and any other person
or party who may become liable under the Loan Documents for the payment of all
or any part of the Debt.

         14.      The provisions of paragraph 57 of the Deed of Trust are hereby
incorporated by reference as if fully set forth herein.

         15.      (a) Any and all payments by Borrower to Lender hereunder and
under the other Loan Documents shall, provided that Lender complies with the
requirements of paragraph 15(c) hereof, be made free and clear of, and without
deduction for, any and all present or future taxes, levies, imposts, deductions,
charges, withholdings or liabilities with respect thereto, except for the
following, for which Borrower (and its direct or indirect members or other
constituent members or partners) shall not be responsible: (i) taxes imposed on
or measured by Lender's net income or net receipts; or (ii) franchise taxes
imposed on Lender by the jurisdiction in which (A) Lender is organized, (B)
Lender is "doing business" (unless such determination of "doing business" is
made solely as a result of Lender's interest in the Loan and the security
therefor), or (C) Lender's applicable lending office is located (all such taxes,
levies, imposts, deductions, charges or withholdings and liabilities (except
those described in the foregoing clauses (i) and (ii)) being hereinafter
referred to as "LOAN TAXES"). If Borrower shall be required by law to deduct or
withhold any Loan Taxes from or in respect of any sum payable hereunder or under
any other Loan Document, then (1) any such sum payable hereunder or under any
other Loan Document shall be increased as may be necessary so that after making
all required deductions or withholdings (including deductions applicable to
additional sums payable under this paragraph 15), Lender receives an amount
equal to the sum it would have received had no such deductions or withholdings
(including deductions applicable to additional sums payable under this paragraph
15) been made, (2) Borrower shall make such deductions or withholdings, and (3)
Borrower shall pay the full amount deducted or withheld to the relevant taxing
authority in accordance with applicable law. Borrower (but not its direct or
indirect members or other constituent members or partners) will indemnify Lender
for the full amount of any Loan Taxes (including, without limitation, any Loan
Taxes (as well as taxes described in clauses (i) and (ii) of the second
preceding sentence) imposed by any jurisdiction on any amounts payable under
this paragraph 15) paid or payable by Lender and any liability (including,
without limitation, penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not such Loan Taxes were correctly or legally
asserted. A certificate as to the amount of such payment or liability delivered
to Borrower by Lender shall be conclusive absent manifest error. The agreements
and obligations of Borrower contained in this paragraph 15 shall survive the
payment in full of principal and interest under this Note.

           (b)    Within thirty (30) days after the date of any payment of Loan
Taxes withheld by Borrower in respect of any payment to Lender, Borrower will
furnish to Lender the

                                      -11-
<PAGE>

original or a certified copy of a receipt or other evidence satisfactory to
Lender evidencing payment thereof.

           (c)    If Lender is a U.S. Person (other than the Lender originally
named herein), Lender shall deliver to Borrower, upon request, a Form W-9
(unless it establishes to the reasonable satisfaction of Borrower that it is
otherwise eligible for an exemption from backup withholding tax or other
withholding tax). If Lender is not a U.S. Person, Lender shall deliver to
Borrower, upon request, (a) two duly completed and signed copies of either
Internal Revenue Service Form W-8BEN (claiming an exemption from or a reduction
in United States withholding tax under an applicable treaty) or its successor
form or Form W-8ECI (claiming an exemption from United States withholding tax as
effectively connected income) or its successor form and related applicable
forms, as the case may be; or (b) in the case of a foreign Lender that is not a
"bank" within the meaning of Section 881(c)(3)(A) of the Code and that cannot
comply with the requirements of clause (a) above, (x) a statement to the effect
that such Lender is eligible for a complete exemption from withholding of United
States Taxes under Section 871(h) or 881(c) of the Code, and (y) two duly
completed and signed copies of Internal Revenue Service Form W-8BEN or
successor and related applicable forms. If Lender is not a U.S. Person, Lender
further undertakes to deliver to Borrower additional forms described in clause
(a) or (b) of the preceding sentence (or any successor forms) or other manner of
certification, as the case may be, (A) on or before the date that any such form
expires or becomes obsolete, (B) after the occurrence of any event requiring a
change in the most recent form previously delivered by it to Borrower, and (C)
such extensions or renewals thereof as may reasonably be requested by Borrower,
certifying that Lender is entitled to receive payments hereunder without
deduction or withholding of any Loan Taxes. However, in the event that any
change in law, rule, regulation, treaty or directive, or in the interpretation
or application thereof (a "LAW CHANGE"), has occurred prior to the date on which
any delivery pursuant to the preceding sentence would otherwise be required
which renders such form inapplicable, or which would prevent Lender from duly
completing and delivering any such form, or if such Law Change results in Lender
being unable to deliver a Form W-9 (or other satisfactory evidence that it is
otherwise eligible for an exemption from backup withholding tax or other
withholding tax), Lender shall not be obligated to deliver such forms but shall,
promptly following such Law Change, but in any event prior to the time the next
payment hereunder is due following such Law Change, advise Borrower in writing
whether it is capable of receiving payments without any deduction or withholding
of Loan Taxes. In the event of such Law Change, Borrower shall have the
obligation to make Lender whole and to "gross-up" under paragraph 15(a) hereof,
despite the failure by Lender to deliver such forms.

           (d)    If Lender receives a refund in respect of Loan Taxes paid by
Borrower, it shall promptly pay such refund, together with any other amounts
paid by Borrower pursuant to paragraph 15(a) hereof in connection with such
refunded Loan Taxes, to Borrower; provided, however, that Borrower agrees to
promptly return such refund to Lender if it receives notice from Lender that it
is required to repay such refund. Nothing contained herein shall be construed to
require Lender to seek any refund and Lender shall have no obligation to
Borrower to do so.

           (e)    All amounts payable under this paragraph 15 shall constitute
additional interest hereunder and shall be secured by the Deed of Trust and the
other Loan Documents. The provisions of this paragraph 15 shall survive any
payment or prepayment of the Loan and any foreclosure or satisfaction of the
Deed of Trust.

                                      -12-
<PAGE>

         16.      Borrower represents that Borrower has full power, authority
and legal right to execute, deliver and perform its obligations pursuant to this
Note, the Deed of Trust and the other Loan Documents and that this Note, the
Deed of Trust and the other Loan Documents constitute valid and binding
obligations of Borrower subject only to bankruptcy laws, general principals of
equity, insolvency, reorganization, arrangement, moratorium, receivership or
other similar laws relating to or affecting the rights of creditors.

         17.      All notices or other communications required or permitted to
be given pursuant hereto shall be given in the manner specified in the Deed of
Trust directed to the parties at their respective addresses as provided therein.

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

         19.      (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK,
AND MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE
PROCEEDS OF THIS NOTE WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE
PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE
UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO
PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF
AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION,
AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT TO THE LOAN
DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE
IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST
EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK
SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS
AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST
EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES
ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS NOTE,
AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN

                                      -13-
<PAGE>

ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW.

         (b)      ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR
BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER'S OPTION BE
INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW
YORK PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND
BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE
AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER
HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT,
ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT CORPORATION
TRUST COMPANY, 111 EIGHTH AVENUE, NEW YORK, NEW YORK 10011 AS ITS AUTHORIZED
AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS
WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR
STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID
AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO
BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT
EFFECTIVE SERVICE OF PROCESS UPON BORROWER, IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO
LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY
TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN
OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE
DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL
PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN
OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

         20.      Application of Payments. Unless otherwise expressly provided
in this Note or elected by Lender, payments made by Borrower in respect of the
principal and interest of the Loan shall be applied to interest and principal
due on this Note and Substitute Promissory Note A-l, pro-rata.

         21.      Borrower, and by its acceptance hereof, Lender, agrees that
this Note is made by Borrower and accepted by Lender, pursuant to that certain
Note Splitter Agreement, Modification of Loan Documents and Reaffirmation of
Guaranty dated the date hereof, together with Substitute Promissory Note A-l, in
substitution and replacement of that certain Deed of Trust Note made by Borrower
in favor of Lender in the original principal amount of $260,000,000.00, dated
June 26, 2003 (the "ORIGINAL NOTE"), on which Original Note there is now
outstanding the aggregate principal amount of $260,000,000.00 and Borrower, and
by its acceptance hereof, Lender, agrees that this Note, together with
Substitute Promissory Note A-l, evidences the same indebtedness evidenced by the
Original Note and does not create or evidence any new or additional
indebtedness.

                         [NO FURTHER TEXT ON THIS PAGE]

                                      -14-
<PAGE>

         IN WITNESS WHEREOF, Borrower has caused this Note to be executed and
delivered as of the day and year first above written.

                    BORROWER:

                    LIBRARY SQUARE ASSOCIATES, LLC,
                    a Delaware limited liability company

                    By: Bunker Hill Senior Mezzanine, LLC,
                        a Delaware limited liability company,
                        its sole member

                         By: Bunker Hill Junior Mezzanine, LLC,
                             a Delaware limited liability company,
                             its sole member

                             By: New BHE, LLC,
                                 a Delaware limited liability company,
                                 its sole member

                                  By: Maguire Properties, L.P.,
                                      a Maryland limited partnership,
                                      its sole member

                                     By: Maguire Properties, Inc.,
                                         a Maryland corporation,
                                         its sole general partner

                                         By: /s/ [ILLEGIBLE]
                                             -----------------------------------
                                             Name:
                                             Title:

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