Document:

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                                                                   Exhibit 10.16

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                               ORGANIZER INTEREST

                    PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT

                                  BY AND AMONG

                           PBO PROPERTY FUND, L.L.C.,

                          PBO PROPERTY CAPITAL, L.L.C.,

                     BANC ONE CAPITAL HOLDINGS CORPORATION,

                       PIONEER REAL ESTATE ADVISORS, INC.,

                            THE PIONEER GROUP, INC.,

                    OVERSEAS PRIVATE INVESTMENT CORPORATION,

                                       AND

                      STATE STREET BANK AND TRUST COMPANY,
                               AS COLLATERAL AGENT

                            DATED AS OF MAY 20, 1998

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                                TABLE OF CONTENTS

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

Section 1.1    Definitions .................................................   2
Section 1.2    Interpretation ..............................................   7

                                   ARTICLE II
                                  GRANT OF LIEN

Section 2.1    Collateral for Secured Obligations ..........................   8
Section 2.2    Deposit of Collateral .......................................   9
Section 2.3    Transfers and Other Liens ...................................  10
Section 2.4    Remedies Upon an Event of Default ...........................  10
Section 2.5    Waiver ......................................................  15
Section 2.6    Perfection of Security Interest .............................  15
Section 2.7    Further Assurances ..........................................  16
Section 2.8    Distributions; Voting Rights ................................  16
Section 2.9    Enforcement of Rights; No Waiver ............................  17
Section 2.10   Nature of Obligations; Survival .............................  17
Section 2.11   Financing Parties and Pledgors Remain Liable ................  18
Section 2.12   Attorney-in-Fact and Proxy ..................................  18
Section 2.13   OPIC May Perform ............................................  19
Section 2.14   Security Interest Absolute ..................................  19
Section 2.15   OPIC's Duties ...............................................  20
Section 2.16   Appointment of Sub-Agent; Endorsements, Etc. ................  20
Section 2.17   OPIC to Direct the Collateral Agent .........................  20
Section 2.18   Effectiveness ...............................................  21

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

Section 3.1    Representations and Warranties of the Pledgors ..............  22

                                   ARTICLE IV
                                    COVENANTS

Section 4.1    Affirmative Covenants of the Pledgors .......................  24
Section 4.2    Place of Business and Name ..................................  25
Section 4.3    Negative Covenants of the Pledgors ..........................  25

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                                    ARTICLE V
                                  MISCELLANEOUS

Section 5.1    Concerning the Collateral Agent .............................  26
Section 5.2    Indemnity; Reimbursement of Expenses ........................  31
Section 5.3    Notices .....................................................  33
Section 5.4    Amendments ..................................................  34
Section 5.5    Authorized Persons ..........................................  34
Section 5.6    Successors and Assigns; Third Party Beneficiaries ...........  34
Section 5.7    Governing Law ...............................................  35
Section 5.8    Severability ................................................  35
Section 5.9    Jurisdiction and Consent to Suit ............................  35
Section 5.10   Agent for Service of Process ................................  35
Section 5.11   Integration .................................................  36
Section 5.12   Arbitration .................................................  36
Section 5.13   No Conflict .................................................  38
Section 5.14   Continuing Security Agreement ...............................  38
Section 5.15   Satisfaction and Discharge ..................................  38
Section 5.16   Waiver of Jury Trial ........................................  39
Section 5.17   Waiver of Litigation Payments ...............................  39
Section 5.18   Counterparts ................................................  39

                                    SCHEDULE

Schedule I     OPIC Payment Instructions

                                    EXHIBITS

Exhibit A      Principal Place of Business and Chief Executive Office of the
               Pledgors
Exhibit B-1    Certificate of Name, Title and Specimen Signature of the Fund
Exhibit B-2    Certificate of Name, Title and Specimen Signature of the Managing
               Member
Exhibit B-3    Certificate of Name, Title and Specimen Signature of BOCHC
Exhibit B-4    Certificate of Name, Title and Specimen Signature of PREA
Exhibit B-5    Certificate of Name, Title and Specimen Signature of TPG
Exhibit B-6    Certificate of Name, Title and Specimen Signature of OPIC
Exhibit B-7    Certificate of Name, Title and Specimen Signature of the
               Collateral Agent
Exhibit C-1    Certificate of Notation of Lien of the Fund
Exhibit C-2    Certificate of Notation of Lien of the Managing Member
Exhibit D-1    Form of Financing Statement of the Managing Member
Exhibit D-2    Form of Financing Statement of BOCHC
Exhibit D-3    Form of Financing Statement of PREA
Exhibit D-4    Form of Financing Statement of TPG
Exhibit E-1    Form of Irrevocable Power of Attorney of the Managing Member
Exhibit E-2    Form of Irrevocable Power of Attorney of BOCHC

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Exhibit E-3    Form of Irrevocable Power of Attorney of PREA
Exhibit E-4    Form of Irrevocable Power of Attorney of TPG
Exhibit F-1    Form of Undated Instrument of Transfer of the Managing Member
Exhibit F-2    Form of Undated Instrument of Transfer of BOCHC
Exhibit F-3    Form of Undated Instrument of Transfer of PREA
Exhibit F-4    Form of Undated Instrument of Transfer of TPG

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      ORGANIZER INTEREST PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT dated as of
May 20, 1998 (the "Agreement"), by and among PBO PROPERTY FUND, L.L.C. (the
"Fund"), a limited liability company formed and existing under the laws of the
State of Delaware; PBO PROPERTY CAPITAL, L.L.C. (the "Managing Member"), a
limited liability company formed and existing under the laws of the State of
Delaware; BANC ONE CAPITAL HOLDINGS CORPORATION ("BOCHC"), a corporation
organized and existing under the laws of the State of Ohio; PIONEER REAL ESTATE
ADVISORS, INC. ("PREA"), a corporation organized and existing under the laws of
the State of Delaware; THE PIONEER GROUP, INC. ("TPG"), a corporation organized
and existing under the laws of Delaware; OVERSEAS PRIVATE INVESTMENT CORPORATION
("OPIC"), an agency of the United States of America; and STATE STREET BANK AND
TRUST COMPANY (the "Collateral Agent"), a Massachusetts trust company, as
Collateral Agent. (The Managing Member, BOCHC, PREA and TPG are sometimes
referred to herein collectively as the "Pledgors" and individually as a
"Pledgor.")

                                   WITNESSETH:

      WHEREAS, the Pledgors own interests in the Managing Member and/or the
Fund, which PREA and BOCHC have formed to seek to achieve current income and
long term capital gains for its members by investing in companies directly or
indirectly organized by it to acquire and develop light industrial,
manufacturing, commercial, office, distribution, warehouse, retail, and certain
hotel real property and related real estate assets in Central and Eastern Europe
and in the New Independent States (each as defined by reference below), and to
lease such properties on a long-term basis to U.S. and other international
financially responsible tenants or to sell such properties to U.S. and other
international financially responsible purchasers;

      WHEREAS, to obtain financing for the Fund's investments and operations,
the Fund, the Managing Member, PBO Holdings, L.L.C. (the "Holding Company") and
OPIC are contemporaneously herewith entering into an Amended and Restated
Finance Agreement dated as of the date hereof (the "Finance Agreement") pursuant
to which OPIC has agreed to provide the Fund with a credit facility in the
amount of up to U.S. $160,000,000 (the "Loan"), subject to certain terms and
conditions, including that each of the Fund and the Pledgors execute, deliver
and comply with this Agreement;

      WHEREAS, to induce OPIC to provide the Loan, which will be of material
benefit to the Pledgors, (i) the Pledgors, the Fund and OPIC are
contemporaneously herewith entering into an Indemnity Agreement dated as of the
date hereof (the "Indemnity Agreement") pursuant to which each of the Pledgors
agrees to (x) reimburse OPIC for certain costs and expenses, and (y) indemnify
and hold harmless OPIC, the Fund and other Indemnified Persons (as defined
therein) against, and contribute to, the OPIC Losses and the Fund Losses (each
as defined therein), and (ii) the Pledgors, the Fund, the Holding Company and
OPIC are contemporaneously herewith entering into a Subordination Agreement
dated as of the date hereof (the "Subordination Agreement"), pursuant to which
each of the Pledgors agrees to subordinate all obligations owing
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to it from any Financing Credit Party (as defined by reference below), to
certain obligations of the Financing Credit Parties to OPIC; and

      WHEREAS, to secure the full and prompt payment, performance and
satisfaction by the Pledgors of their respective obligations under the Indemnity
Agreement, the Subordination Agreement and this Agreement, each of the Pledgors
wishes to pledge its Collateral (as defined herein), and to grant, assign and
create a security interest therein and Lien thereon, in favor of the Collateral
Agent for the benefit of OPIC, in accordance with the terms and conditions of
this Agreement.

      NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending legally to be bound, hereby agree as
follows:

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

      SECTION 1.1 DEFINITIONS.

            (A) All capitalized terms used in this Agreement, including the
recitals hereto, and not otherwise defined herein shall have the meanings
assigned thereto in the Finance Agreement.

            (B) Unless otherwise provided, the following capitalized terms used
herein shall have the meanings specified below:

            "AGREEMENT" means this Organizer Interest Pledge, Assignment and
Security Agreement, including the Exhibits and Schedules hereto.

            "ARBITRATION NOTICE" has the meaning provided in Section 5.12(a).

            "AUTHORIZED OFFICER" means, (i) with respect to any Person, its
Chairperson, Managing Director, President, Secretary or Treasurer, and any other
officer designated in writing by such Person as having been authorized to
execute and deliver this Agreement or any other Financing Document to which it
is or will be a party, any amendment hereto or thereto, any waiver hereof or
thereof or any Notice or other instrument contemplated hereunder in accordance
with this Agreement, including, in the case of the Fund, the Managing Member,
BOCHC, PREA or TPG, each person whose name, title and signature appear on
Exhibit B-1, B-2, B-3, B-4 or B-5, respectively, as the same may from time to
time be amended by the Fund, the Managing Member, BOCHC, PREA or TPG, as the
case may be, in accordance with Section 5.5, (ii) with respect to a partnership,
any natural person serving as a general partner thereof or any Authorized
Officer of a general partner thereof, (iii) with respect to a limited liability
company organized under the laws of any State or other jurisdiction in the
United States of America, any natural

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person serving as a member thereof with management authority or any Authorized
Officer thereof or of a member thereof with management authority, (iv) with
respect to OPIC, the President, the Vice President, and any other officer
designated to act on behalf of OPIC in connection with the transactions
contemplated hereby pursuant to a redelegation of authority from the President
or a Vice President of OPIC, including each person whose name, title and
signature appear on Exhibit B-6, as the same may from time to time be amended by
OPIC in accordance with Section 5.5, and (v) with respect to the Collateral
Agent, an officer in its Corporate Trust Administration, including each person
whose name, title and signature appear on Exhibit B-7, as the same may from time
to time be amended by the Collateral Agent in accordance with Section 5.5.

            "BOCHC" has the meaning provided in the preamble to this Agreement.

            "BUSINESS DAY" means any day other than (i) a Saturday or Sunday,
(ii) a day on which commercial banks in Washington, D.C., New York, New York, or
the city in which the principal office of the Collateral Agent is situated are
required or permitted to be closed, (iii) a day on which the New York Stock
Exchange is closed, or (iv) when used with respect to any communication or
delivery to or from OPIC, or any action by OPIC, a day on which OPIC is not open
for business.

            "CHARTER DOCUMENTS" means, in respect of any company, corporation,
partnership, limited liability company, governmental agency or other enterprise,
its founding act, charter, certificate or articles of incorporation, by-laws,
memorandum and articles of association, certificate of formation, certificate of
limited partnership, statute, agreement among the holders of voting equity
interests, or similar governing instrument, and including, in respect of the
Fund, the Fund Operating Agreement and, in respect of the Managing Member, the
Managing Member Operating Agreement.

            "COLLATERAL" means, as to each Pledgor, any and all of such
Pledgor's right, title, claim and interest in and to its Pledged Interest,
whether now owned or existing or hereafter acquired or arising, including the
following:

                  (i) (A) any and all rights as a direct or indirect record or
      beneficial owner of a limited liability company or other interest in each
      of the Fund and the Managing Member, including each equity interest to
      receive money due and to become due under or pursuant to the Charter
      Documents of each of the Fund and the Managing Member, whether upon a
      distribution of cash or profits, a return of capital, as liquidation
      proceeds or otherwise, (B) any and all rights to participate in the
      operation or management of each of the Fund and the Managing Member, and
      to take or consent to actions in accordance with the Charter Documents of
      each of the Fund and the Managing Member, (C) any and all rights to
      property of each of the Fund and the Managing Member, (D) any and all
      rights to receive proceeds of any insurance, bond, indemnity, warranty or
      guaranty with respect to each of the Fund and the Managing Member, (E) any
      and all claims for damages arising out of, or for breach of, or default
      under the Charter Documents of each of the Fund and the Managing Member,
      and (F) any and all rights to terminate, amend,

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      supplement, modify or waive performance under the Charter Documents of
      each of the Fund and the Managing Member, to perform thereunder and to
      compel the performance and otherwise to exercise all remedies thereunder;

                  (ii) any and all rights as a secured or unsecured creditor of
      each of the Fund and the Managing Member, including all rights to receive
      payment of any monies and to enforce any obligation of the Fund and the
      Managing Member under any loan agreement, note, instrument, security or
      other agreement or document evidencing or relating to the advance of
      monies by, or on behalf of, such Pledgor to the Fund and the Managing
      Member;

                  (iii) any and all certificates, certificated and
      uncertificated Securities and other instruments or documents of any type
      or nature (including depositary receipts, if any), at any time existing,
      representing, evidencing or giving rise to (A) the Collateral of such
      Pledgor, whether resulting from a split-up, revision, reclassification or
      other like change of its Collateral or otherwise received in exchange
      therefor, and (B) any type of ownership interest at any time issued to
      such Pledgor by the Fund and the Managing Member, or otherwise acquired by
      any of the Pledgors, including any subscription warrants, rights or
      options issued to holders of, or otherwise in respect of, the Collateral
      of such Pledgor;

                  (iv) any and all property and financial assets, whether
      tangible or intangible, wherever located, including all goods, documents,
      instruments, general intangibles, chattel paper, accounts, deposit
      accounts, receivables, certificated and uncertificated Securities,
      securities accounts, security entitlements, and other investment property
      of whatever kind or nature from time to time received, receivable or
      otherwise distributed in respect of, in exchange for, or upon conversion
      or exercise of any or all of any part of the Collateral of such Pledgor;
      and

                  (v) to the extent not included above, any and all proceeds,
      monies, cash, rents, revenues, profits, royalties, income, benefits,
      additions, accessions, substitutions and replacements of, to or from any
      and all of the foregoing.

      Notwithstanding the foregoing, the term "Collateral" shall not include the
      Collateral of any Pledgor to the extent that the Secured Obligations of
      such Pledgor have been paid, performed and satisfied in full or released
      by OPIC in writing.

            "COLLATERAL AGENT" has the meaning provided in the preamble to this
Agreement and includes any successor thereto appointed by OPIC or qualifying to
act in such capacity in accordance with this Agreement.

            "EVENT OF DEFAULT" means, with respect to a Pledgor, (i) if any
representation or warranty made by or on behalf of such Pledgor in this
Agreement or any other agreement between OPIC and such Pledgor proves to have
been incorrect in any material respect when made; (ii) if

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such Pledgor fails to pay when due any of its Secured Obligations within ten
(10) days of the date due; or (iii) if such Pledgor fails to comply with or
perform any of its other material obligations or undertakings set forth in the
Indemnity Agreement, the Subordination Agreement or this Agreement, which
failure continues for thirty (30) days after the occurrence thereof.

            "FINANCE AGREEMENT" has the meaning provided in the recitals to this
Agreement.

            "FINANCING STATEMENT" means a UCC-1 financing statement (i) naming
(A) a Pledgor as the debtor and (B) the Collateral Agent for the benefit of OPIC
as the secured party, and (ii) describing the Collateral of such Pledgor, which
financing statement shall be in the form required or permitted by the UCC as
enacted and in effect in the jurisdiction where such financing statement is to
be filed to perfect the security interest in and Lien on such Collateral granted
hereunder.

            "FUND" has the meaning provided in the preamble to this Agreement.

            "FUND EVENT OF DEFAULT" means an Event of Default as defined in the
Finance Agreement.

            "FUND QUALIFIED DEFAULT" means a Fund Event of Default referred to
in Section 8.1(c), (d), (e) or (i) of the Finance Agreement (but excluding a
Fund Event of Default based on a failure to comply with Section 7.10 thereof),
if, and only if, all of the following conditions exist: (i) the occurrence of
such Fund Event of Default was beyond the control of the Financing Parties and
without their knowledge notwithstanding due inquiry where appropriate, and (ii)
OPIC has notified the Financing Parties of OPIC's determination that (A) such
Fund Event of Default appears reasonably susceptible of being cured, (B) the
Managing Member is undertaking diligently to effect such cure and (C) as
applicable in accordance with the proviso contained in Section 8.2(b) of the
Finance Agreement, such Fund Event of Default would not be reasonably likely to
produce a Fundamental Material Adverse Effect; provided, however, that (x) such
a Fund Event of Default shall be deemed to be a Fund Qualified Default solely
during such period of time (if any) as to which OPIC has agreed, to the extent
required in Section 8.2(b) of the Finance Agreement, not to exercise any remedy
specified in said Section 8.2(b) and (y) such a Fund Event of Default shall,
immediately upon the expiration of such period of time, automatically and
without the consent or further action of OPIC or any other Person, no longer be
considered a Fund Qualified Default.

            "FUND OPERATING AGREEMENT" means the Limited Liability Company
Agreement of PBO Property Fund, L.L.C., dated as of the date hereof, by and
among the Managing Member, BOCHC, TPG and any other Persons who may hereafter
become Members.

            "GOVERNMENTAL AUTHORITY" means each federal, state, regional and
local agency, ministry, council and other regulatory or public authority
(including any central bank) of any sovereign governmental authority, including
the United States of America and any country in Central and Eastern Europe or
the NIS.

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            "HOLDING COMPANY" has the meaning provided in the recitals to this
Agreement.

            "ICC" has the meaning provided in Section 5.12(a).

            "INDEMNIFIED PERSON" has the meaning provided in Section 5.2(a).

            "INDEMNITY AGREEMENT" has the meaning provided in the recitals to
this Agreement.

            "LIEN" means (i) any lien, pledge, pawn, legal or equitable
mortgage, security interest, deed of trust, fixed or floating charge,
assignment, hypothecation, title retention, option, right of set-off, escrow or
other claim or encumbrance on or with respect to property or interest in
property, (ii) any preferential arrangement having the practical effect of
constituting any of the foregoing with respect to the payment of any obligation
with, or from the proceeds of, any asset or revenue of any kind, and (iii) any
filing of, or agreement to file, any financing statement covering all or part of
the Collateral under the UCC as enacted and in effect in any jurisdiction.

            "LITIGATION PAYMENT" has the meaning provided in Section 5.17.

            "LOAN" has the meaning provided in the recitals to this Agreement.

            "MANAGING MEMBER" has the meaning provided in the preamble to this
Agreement.

            "MANAGING MEMBER OPERATING AGREEMENT" means the Limited Liability
Company Agreement of PBO Property Capital, L.L.C., dated as of the date hereof,
by and between BOCHC and PREA.

            "NOTICE" has the meaning provided in Section 5.3.

            "OPIC" has the meaning provided in the preamble to this Agreement.

            "OPIC PLAINTIFF" has the meaning provided in Section 5.17.

            "PERSON" means (i) an individual, (ii) a legal entity or association
of legal entities, including a partnership, a limited partnership, a joint
venture, a corporation, a trust, a limited company, a limited liability company,
a limited liability partnership, or an unincorporated organization, or (iii) a
Governmental Authority or any department or agency thereof.

            "PLEDGED INTEREST" means, as to each Pledgor, its entire record or
beneficial, equity or debt interest in each of the Fund and the Managing Member.

            "PLEDGOR" has the meaning provided in the preamble to this
Agreement.

            "PREA" has the meaning provided in the preamble to this Agreement.

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            "QUALIFYING BANK" means (i) State Street Bank and Trust Company; or
(ii) a bank or trust company located in the United States of America (a)
organized as a banking association or corporation under the laws of the United
States of America, any State thereof or the District of Columbia, (b) subject to
supervision or examination by federal, state or District of Columbia banking
authorities, (c) with capital and surplus of not less than $250,000,000, (d) the
long-term unsecured debt securities of which are rated at least "A" by Moody's
Investor Services, Inc. or by Standard & Poor's Ratings Group or are otherwise
acceptable to OPIC, and (e) which is a securities intermediary (as such term is
defined in the UCC).

            "RULES" has the meaning provided in Section 5.12(a).

            "SECURED OBLIGATIONS" has the meaning provided in Section 2.1(b).

            "SECURITIES" means, collectively, all voting, consensual, ownership
or other financial interests in each of the Fund and the Managing Member.

            "SUB-AGENT" means any Person other than the Collateral Agent
designated by OPIC as its agent for purposes of implementing the collateral
security arrangements contemplated by this Agreement.

            "TPG" has the meaning provided in the preamble to this Agreement.

            "UCC" means the Uniform Commercial Code as enacted and in effect on
the date hereof in the State of New York, the State of Ohio, the Commonwealth of
Massachusetts, or, as applicable or as otherwise required by the context, any
other jurisdiction.

            (C) All terms used and not defined herein that are defined in the
UCC shall have the definitions assigned thereto in the UCC to the extent
necessary or appropriate to protect, to the fullest extent possible, OPIC's
rights as a secured party under the UCC.

      SECTION 1.2 INTERPRETATION. In this Agreement, unless otherwise indicated
or otherwise required by the context:

            (A) reference to and the definition of any document (including this
Agreement) shall be deemed a reference to such document as it may be amended,
supplemented, revised, or modified from time to time;

            (B) all references to an "Article", "Section", "Schedule", or
"Exhibit" are to an Article or Section hereof or to a Schedule or an Exhibit
attached hereto;

            (C) the table of contents, article and section headings, and other
captions in this Agreement are for the purpose of reference only and do not
limit or affect its meaning;

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            (D) defined terms in the singular include the plural and vice versa,
and the masculine, feminine or neuter gender includes all genders;

            (E) accounting terms used but not defined herein shall have the
respective meanings given to them under U.S. GAAP;

            (F) reference to any individual, corporation, partnership, limited
liability company or other Person shall be deemed a reference to such
individual, corporation, partnership, limited liability company or other Person
together with its permitted successors and assigns from time to time;

            (G) the words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement refer to this Agreement as a whole
and not to any particular provision of this Agreement;

            (H) phrases such as "satisfactory to OPIC", "in OPIC's judgment",
and other phrases of similar import authorize and permit OPIC to approve,
disapprove, act or decline to act in its sole discretion;

            (I) the word "reasonable" (and words of similar import) in any
context herein applicable to any actions or determinations by OPIC shall mean
reasonable for OPIC, taking into account the prevailing facts and circumstances,
OPIC's generally applicable internal policy guidelines at that time, OPIC's
nature as a governmental and not a commercial entity, and the obligations
imposed on OPIC pursuant to the Foreign Assistance Act of 1961, as amended; and

            (J) the words "include," "includes," and "including" when used in
this Agreement shall mean, as required by the context, include, includes, and
including "without limitation," "without limitation by specification" or "but
not limited to."

                                   ARTICLE II
                                  GRANT OF LIEN

      SECTION 2.1 COLLATERAL FOR SECURED OBLIGATIONS.

            (A) For value received, and in consideration of OPIC's agreement to
make each Disbursement of the Loan in accordance with the Finance Agreement,
whether or not any such Disbursement is advanced contemporaneously herewith, in
the future or at all, and as continuing security for the full and timely payment
and performance of all of the present or future, actual or contingent Secured
Obligations of each Pledgor, each respective Pledgor hereby pledges, and grants,
assigns and creates a security interest in, and Lien on, all of its Collateral
in favor of the Collateral Agent for the benefit of OPIC, its successors and
assigns.

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            (B) The purpose of the security interest and Lien granted by each
Pledgor hereunder is to secure the full and timely payment and performance when
due of the following:

                  (i) any and all fees, expenses (including legal fees),
      indemnification, contribution, reimbursement and other obligations and
      liabilities now or hereafter owed, incurred or to be performed by such
      Pledgor under each of (A) the Indemnity Agreement, (B) the Subordination
      Agreement, and/or (C) this Agreement, and including any renewals,
      extensions or continuations of any of the foregoing;

                  (ii) any and all sums advanced by OPIC in order to preserve
      the Collateral of such Pledgor or to preserve the security interest
      therein and Lien thereon granted by such Pledgor hereunder;

                  (iii) upon, and only upon, OPIC's exercise of its rights under
      Section 2.4(c) after a Fund Event of Default shall have occurred and be
      continuing, any and all obligations of such Pledgor to fund such amounts
      as are specified in (A) each Notice of Drawdown (as defined in, and in
      accordance with, the Fund Operating Agreement) issued by or on behalf of
      the Managing Member, and (B) each Contribution Notice (as defined in, and
      in accordance with, the Managing Member Operating Agreement) issued by or
      on behalf of PREA, in each case in accordance with Section 2.4(c); and

                  (iv) in the event of any proceeding for the collection or
      enforcement of any indebtedness, obligations or liabilities referred to in
      clauses (i) through (iii) above with respect to such Pledgor, after an
      Event of Default with respect to such Pledgor shall have occurred and be
      continuing, the reasonable expenses of retaking, holding, preparing for
      sale or lease, selling or otherwise disposing or realizing upon the
      Collateral of such Pledgor, together with reasonable attorneys' fees and
      court costs (all the foregoing items in clauses (i) through (iv) being
      collectively referred to herein as the "Secured Obligations").

            (C) The security interest and Lien granted hereunder is a continuing
security interest in and Lien on the Collateral of each Pledgor, and shall
remain in full force and effect until payment, performance and satisfaction in
full of all of the Secured Obligations of such Pledgor.

      SECTION 2.2 DEPOSIT OF COLLATERAL.

            (A) Each of the Pledgors shall, from time to time, promptly deposit
with OPIC (or the Collateral Agent, for the benefit of OPIC) any and all
certificates or other instruments representing or evidencing all Securities
constituting part of the Collateral acquired by such Pledgor, duly endorsed in
blank in the case of debt instruments, accompanied by undated stock powers duly
executed in blank by such Pledgor in the case of other Securities, or
accompanied by such other instruments of transfer as are acceptable to OPIC and
in accordance with applicable law, and including a certificate executed by such
Pledgor describing such Securities and certifying

                                     - 9 -
<PAGE>   14

that the same have been duly pledged to OPIC or the Collateral Agent hereunder.
All Securities and instruments of transfer shall be held in accordance with this
Agreement.

            (B) Notwithstanding anything to the contrary contained in this
Agreement, to the extent any Security (whether now owned or hereafter acquired)
is uncertificated, each Pledgor of such Security shall promptly notify OPIC and
the Collateral Agent, and shall promptly take all actions required to perfect
OPIC's security interest in and Lien on such uncertificated Security under
applicable law. Each Pledgor further agrees to take such actions as OPIC deems
necessary or desirable to effect the foregoing and to permit OPIC to exercise
any of its rights and remedies hereunder, and agrees to provide an opinion of
counsel reasonably satisfactory to OPIC with respect to any such pledge of
uncertificated Securities promptly upon the request of OPIC.

            (C) If any Pledgor shall acquire (by purchase, distribution or
otherwise) any additional Securities at any time or from time to time after the
date hereof, such Pledgor shall forthwith pledge such Securities as collateral
security to OPIC or the Collateral Agent hereunder and, to the extent such
Securities are certificated or uncertificated, as the case may be, comply with
the applicable requirements of Section 2.2 with respect to such Securities.

      SECTION 2.3 TRANSFERS AND OTHER LIENS.

            (A) Each Pledgor agrees not to (i) sell, assign (by operation of law
or otherwise), transfer, convey or otherwise dispose of, or grant any option
with respect to all or any part of its Collateral, except as permitted under,
and in compliance with, Sections 6.1(b) and 7.11 (and any other applicable
provisions) of the Finance Agreement, or (ii) grant, create, assign, incur,
cause the imposition of, or suffer to exist any Lien on or with respect to any
of the Collateral of such Pledgor, without the express written consent of OPIC,
except for the security interest and Lien granted under this Agreement and such
Liens as may be created by the other Security Documents in favor of the
Collateral Agent for the benefit of OPIC.

            (B) Any Collateral sold, assigned, transferred, conveyed or
otherwise disposed of by a Pledgor to any other Pledgor or any of their
respective Affiliates, shall remain subject to the security interest and Lien
granted by such former Pledgor hereunder and shall continue to serve, and shall
be held by such other Pledgor or Affiliate, as the case may be, as collateral
security for the Secured Obligations of such former Pledgor as if such sale,
assignment, transfer, conveyance or other disposition had not taken place, until
such time as such Secured Obligations are paid, performed and satisfied in full
and such security interest and Lien is released by OPIC or the Collateral Agent
(acting upon the instructions of OPIC) in accordance with this Agreement.

      SECTION 2.4 REMEDIES UPON AN EVENT OF DEFAULT.

            (A) Upon the occurrence and during the continuance of an Event of
Default with respect to a Pledgor, OPIC and the Collateral Agent (acting on
behalf of and upon OPIC's instructions) shall have, automatically and without
the consent or further action of such Pledgor, all of the rights, powers and
remedies (whether vested in it by this Agreement, by statute, in

                                     - 10 -
<PAGE>   15

equity or otherwise) of a secured party under the UCC, and shall be entitled to
exercise any and all other rights, powers and remedies for the protection and
enforcement of OPIC's rights in respect of the Collateral of such Pledgor,
including the following rights and powers, to the maximum extent permitted by
law:

                  (i) to receive all dividends, distributions and other amounts
      payable in respect of the Collateral of such Pledgor that otherwise are
      payable to such Pledgor under Section 2.8;

                  (ii) to have and exercise, with respect to the Collateral of
      such Pledgor, all of the rights and remedies of a pledgeholder or a
      secured party under the UCC (whether or not the UCC is in effect in the
      jurisdiction where such rights and remedies are asserted), and such
      additional rights and remedies to which a pledgeholder or secured party is
      entitled under the laws in effect in any jurisdiction where any rights and
      remedies hereunder may be asserted, including the right to exercise all
      voting and consensual rights and powers of ownership pertaining to the
      Collateral of such Pledgor (whether or not transferred into the name of
      OPIC, the Collateral Agent or any Sub-Agent) as if OPIC, the Collateral
      Agent or such Sub-Agent (as the case may be) were the sole and absolute
      owner thereof, and such Pledgor agrees to take all such action as may be
      appropriate to give effect to such right and hereby irrevocably
      constitutes and appoints each of the Collateral Agent and any Sub-Agent,
      for the benefit of OPIC, and OPIC, the proxy and attorney-in-fact of such
      Pledgor, with full power of substitution, from and after the occurrence
      and during the continuance of an Event of Default with respect to such
      Pledgor, to exercise all such voting and consensual rights and powers of
      ownership and to execute and deliver any documents or instruments in
      connection therewith, and such proxy and power of attorney are each
      coupled with an interest and shall not be affected by the subsequent
      disability, incapacity, bankruptcy, dissolution, or termination of such
      Pledgor;

                  (iii) to transfer any of the Collateral of such Pledgor into
      its own name or the name of its nominee;

                  (iv) if required by applicable law, to obtain a court
      resolution or arbitral award of the competent authorities authorizing the
      Collateral Agent, any Sub-Agent or OPIC, as the case may be, to foreclose
      on and dispose of any of the Collateral of such Pledgor in the manner set
      forth in this Agreement, or as otherwise determined by the court or
      arbitral authority;

                  (v) in the name of the Collateral Agent, any Sub-Agent or
      OPIC, or in the name of such Pledgor or otherwise, to compel performance
      under, to make any compromise or settlement with respect to, and to
      demand, sue for, collect or receive any money or property at any time
      payable or receivable on account of or in exchange for, or any other
      consideration due under, any of the Collateral of such Pledgor;

                                     - 11 -
<PAGE>   16

                  (vi) at any time or from time to time, upon ten (10) Business
      Days' prior written notice to such Pledgor (which each such Pledgor
      expressly agrees is reasonable notice for purposes of the UCC and all
      other applicable law) of the time and place, to sell, lease, assign and
      deliver, or grant options to purchase, or otherwise dispose of all or any
      part of the Collateral of such Pledgor, at such place or places as OPIC or
      the Collateral Agent may determine, for cash or on credit or for future
      delivery (without thereby assuming any credit risk), at public or private
      sale, it being agreed that the purchaser, lessee, assignee or recipient of
      any or all of such Collateral so disposed of at any public or private sale
      may thereafter hold the same absolutely free from any claim or right of
      such Pledgor of whatever kind, including any right of redemption, and any
      obligation to see to the application of any part of the purchase money
      paid therefor or any liability for the misapplication or non-application
      thereof; and OPIC or the Collateral Agent or any Sub-Agent (acting on
      behalf of and on the instructions of OPIC), as the case may be, may,
      without notice or publication, adjourn any public or private sale or cause
      the same to be adjourned from time to time by announcement at the time and
      place fixed for such sale, and such sale may be made at any time or place
      to which the same may be so adjourned. All cash proceeds received by OPIC,
      the Collateral Agent or any Sub-Agent, as the case may be, in respect of
      any sale, lease, collection or disposition of, or other realization upon
      all or any part of the Collateral of such Pledgor may be applied in whole
      or in part to the Secured Obligations of such Pledgor in any manner
      elected by OPIC which is permitted by applicable law. Any surplus of such
      cash or cash proceeds and interest accrued thereon, if any, held by the
      Collateral Agent, any Sub-Agent or OPIC and remaining after payment,
      performance and satisfaction in full of all such Secured Obligations shall
      promptly be paid over to such Pledgor or to whomever may be lawfully
      entitled to receive such surplus; provided, however, that none of the
      Collateral Agent, any Sub-Agent or OPIC shall have any obligation to
      invest or otherwise pay interest on any amounts held by it in connection
      with or pursuant to this Agreement. Each Pledgor agrees that each and
      every disposition of any part of its Collateral in accordance with this
      Section 2.4(a) shall constitute a disposition in a commercially reasonable
      manner;

                  (vii) to appoint any Person as agent to perform any act or
      acts necessary or incident to any sale, lease, assignment, delivery or
      other disposition of, or grant of options to purchase, all or any part of
      the Collateral of such Pledgor by the Collateral Agent or OPIC (as the
      case may be);

                  (viii) to notify account debtors to make payment directly to
      the Collateral Agent, any Sub-Agent designated by OPIC or OPIC, and
      execute, assign and endorse negotiable and other instruments for the
      payment, shipment or storage of or for any type of Collateral of such
      Pledgor on behalf of and in the name of such Pledgor; and

                  (ix) to exercise, with respect to such Pledgor, all other
      rights and remedies permitted by applicable law.

                                     - 12 -
<PAGE>   17

            (B) Upon the occurrence and during the continuance of an Event of
Default with respect to a Pledgor, automatically and without the consent or
further action of such Pledgor:

                  (i) all of the Collateral of such Pledgor shall continue to be
      held by the Collateral Agent as collateral security for the Secured
      Obligations of such Pledgor or applied to the payment, performance and
      satisfaction of such Secured Obligations in accordance with this
      Agreement;

                  (ii) all rights of such Pledgor to exercise the voting,
      consensual and other ownership rights which it would otherwise be entitled
      to exercise and all rights to receive any distributions and payments which
      it would otherwise be authorized to receive and retain shall cease, and,
      upon election by OPIC, all such rights shall thereupon become vested in
      the Collateral Agent, any Sub-Agent designated by OPIC or OPIC, which
      shall thereupon have the sole right to exercise such voting, consensual
      and other ownership rights and to receive and hold as Collateral or apply
      to the payment, performance and satisfaction of the Secured Obligations of
      such Pledgor such distributions and payments as provided herein; and

                  (iii) all payments and distributions that are received by such
      Pledgor contrary to the provisions of this Section 2.4 shall be received
      in trust for the benefit of the Collateral Agent and OPIC, shall be
      segregated from the other funds and property of such Pledgor, and shall be
      forthwith paid over to the Collateral Agent, any Sub-Agent designated by
      OPIC or OPIC as Collateral in the same form as so received (with any
      necessary endorsement), to be held by the Collateral Agent or such
      Sub-Agent as Collateral or applied to the payment or performance of the
      Secured Obligations of such Pledgor in accordance with this Agreement.

            (C) (i) In the event the Fund has made an investment in a Project
      with respect to which construction has commenced but has not been
      completed, OPIC may, in the exercise of its rights, powers and remedies
      under the Finance Agreement, this Agreement and any other Financing
      Documents and upon the occurrence and during the continuance of a Fund
      Event of Default, (A) issue, or cause the Managing Member to issue, one or
      more Notices of Drawdown (as defined in the Fund Operating Agreement) for
      the purpose of causing all of the Members, including the Managing Member,
      TPG and BOCHC, to fund their respective Equity Commitments to contribute
      to the capital of the Fund, in accordance with the Fund Operating
      Agreement, an aggregate amount equal to fifty percent (50%) of the amount
      contemporaneously to be loaned by OPIC to the Fund, and (B) issue, or
      cause PREA to issue, one or more Contribution Notices (as defined in the
      Managing Member Operating Agreement) for the purpose of causing PREA and
      BOCHC to contribute to the capital of the Managing Member, in accordance
      with the Managing Member Operating Agreement, an aggregate amount
      sufficient to enable the Managing Member to fund its capital contribution
      to the Fund in response to any Notice of Drawdown issued pursuant to or
      otherwise contemplated by this Section 2.4(c), in each case, to achieve
      substantial completion of the applicable Project in accordance with the

                                     - 13 -
<PAGE>   18

      plans and specifications submitted by the Fund to OPIC in connection with
      OPIC's approval of the applicable Project.

                  (ii) Except as provided in this Section 2.4(c), neither OPIC
      nor any Person claiming by, through or under OPIC shall have the right to
      cause any Member or any member of the Managing Member to make (A) a
      capital contribution to the Fund or the Managing Member that has not
      theretofore been called pursuant to a Notice of Drawdown or Contribution
      Notice issued by the Managing Member (while controlled by PREA and BOCHC
      or any of their respective Affiliates) or PREA, as applicable, or (B) any
      loan to the Fund or the Managing Member, pursuant to the Charter Documents
      of the Fund or the Managing Member or any other agreement or otherwise,
      whether to repay the Notes or the Loan or for any other purpose; provided,
      however, that the foregoing shall not limit any obligations of (x) PREA,
      TPG or BOCHC under this Agreement, the Indemnity Agreement or the
      Subordination Agreement, (y) any Member to return to the Fund any
      distributions which it has received that were made in violation of any
      Financing Document or applicable law, or (z) OPIC's rights under any
      Financing Document or applicable law to enforce any such obligations. Each
      of the Pledgors and the Fund agrees to cooperate with OPIC in the exercise
      of OPIC's rights, powers and remedies under this Section 2.4(c).

                  (iii) Notwithstanding the occurrence of a Fund Event of
      Default, if and solely during such period of time (if any) as such Fund
      Event of Default is deemed to be a Fund Qualified Default, and provided
      that no other Fund Event of Default (other than a Fund Qualified Default)
      has occurred and is continuing, OPIC shall not, solely in reliance upon
      such Fund Qualified Default, exercise any of its rights and remedies under
      this Section 2.4(c) or under the Finance Agreement except as permitted by
      Section 8.2(b) thereof; provided, however, that, automatically and without
      the consent or further action of OPIC or any other Person, immediately
      upon the expiration of the period of time as to which such Fund Event of
      Default is deemed to be a Fund Qualified Default, OPIC may proceed to
      exercise, without restriction or limitation, any and all of its rights and
      remedies under this Section 2.4(c) and the remedies specified in Section
      8.2(b) of the Finance Agreement.

            (D) If the proceeds of any sale, lease, collection or disposition
of, or other realization upon the Collateral of a Pledgor pursuant to this
Section 2.4 are insufficient to cover the costs and expenses of such sale,
lease, collection, disposition or realization and the payment, performance and
satisfaction in full of the Secured Obligations of such Pledgor, such Pledgor
shall remain liable for any deficiency.

            (E) The Collateral Agent, any Sub-Agent or OPIC may be a purchaser
of the Collateral, or any part thereof, at any sale carried out pursuant to the
provisions of this Agreement, and may bid for and acquire all or any part of the
Collateral of a Pledgor in each case free of any right of redemption and in lieu
of paying cash may make settlement for the purchase

                                     - 14 -
<PAGE>   19

price by crediting upon the Secured Obligations of such Pledgor the net sales
price of the purchased Collateral after deducting the costs and expenses of such
sale.

            (F) Subject to compliance with any applicable law, the Collateral
Agent, acting on behalf of and on the instructions of OPIC, any Sub-Agent
designated by OPIC and/or OPIC may, at their option, enforce their rights
hereunder without prior judicial or arbitral process or hearing, and, to the
extent permitted by applicable law, each Pledgor expressly waives any and all
legal rights which might otherwise require the Collateral Agent or any
Sub-Agent, acting on behalf of and on the instructions of OPIC, and/or OPIC to
enforce their rights by judicial or arbitral process.

            (G) If any notification of intended disposition of any part of the
Collateral of a Pledgor is required by law, such notification shall be deemed
reasonable and properly given if mailed, postage prepaid, hand delivered, or
sent by telegram or facsimile at least ten (10) Business Days before any such
disposition to the address of such Pledgor set forth in Section 5.3.

            (H) After deducting all reasonable legal or other expenses and costs
of collection of any of the Secured Obligations of a Pledgor and of collection,
custody, sale or delivery of the Collateral of such Pledgor, the residue of any
proceeds of collection or sale, and any other cash Collateral of such Pledgor
held by or on behalf of OPIC, shall be applied to the payment and performance of
the Secured Obligations of such Pledgor, due or to become due, in such order of
preference as OPIC may determine. Any remaining Collateral of such Pledgor shall
be returned to such Pledgor, except as otherwise required by law.

            (I) All the foregoing rights and remedies may be exercised,
notwithstanding any contrary provisions or limitations in this Agreement, from
and after the occurrence of an Event of Default and for such period as such
Event of Default shall be continuing.

            (J) OPIC or the Collateral Agent may exercise its rights with
respect to the Collateral of a Pledgor without resorting or regard to other
security or sources of reimbursement for the Secured Obligations of such Pledgor
but shall do so in a commercially reasonable manner.

      SECTION 2.5 WAIVER. Except as otherwise expressly provided herein, in the
Indemnity Agreement or in the Subordination Agreement, each Pledgor waives
demand, notice, protest, notice of acceptance of this Agreement, Collateral
received or delivered or other action taken in reliance hereon, all demands and
notices in connection with the delivery, acceptance, performance, default or
enforcement of any Note or other obligation for which any of the Collateral of
such Pledgor is pledged and all other demands and notices of any description,
and assents to any extension or postponement of the time of payment or any other
indulgence, to any substitution, exchange or release of Collateral or to the
addition or release of any Person primarily or secondarily liable for any of the
Secured Obligations of such Pledgor.

      SECTION 2.6 PERFECTION OF SECURITY INTEREST. Without limiting any other
means by which OPIC may perfect its security interest in and Lien on the
Collateral of a Pledgor, with

                                     - 15 -
<PAGE>   20

respect to Collateral in which a security interest may be perfected by
possession, dominion and control, OPIC (or the Collateral Agent, for the benefit
of OPIC) has and shall have possession of, and dominion and control over, the
Collateral of such Pledgor as security for the Secured Obligations of such
Pledgor.

      SECTION 2.7 FURTHER ASSURANCES.

            (A) Each Pledgor agrees that at any time and from time to time, at
its expense, it will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or reasonably
advisable, or that OPIC or the Collateral Agent may reasonably request, in order
to perfect, protect and maintain the enforceability of the security interest and
Lien granted or purported to be granted hereunder by such Pledgor or to enable
OPIC or the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any part of the Collateral of such Pledgor. Without
limiting the generality of the foregoing, each Pledgor shall execute and file
such financing statements (including the Financing Statements), continuation
statements or amendments thereto, and shall execute and deliver or file such
other instruments or notices, in each case as may be necessary or reasonably
advisable or as OPIC or the Collateral Agent (at OPIC's direction) may
reasonably request, in order to perfect, protect and maintain the enforceability
of the security interest and Lien granted or purported to be granted hereunder
by such Pledgor.

            (B) Each Pledgor hereby authorizes OPIC and the Collateral Agent to
file one or more financing statements (including the Financing Statements),
continuation statements and amendments thereto, relative to all or any part of
the Collateral of such Pledgor without the signature of such Pledgor where
permitted by law. A photocopy or other reproduction of this Agreement or any
financing statement covering any or all of the Collateral of a Pledgor shall be
sufficient as a financing statement where permitted by law.

            (C) The Collateral Agent agrees to take such steps as may be
permitted or required under the UCC and reasonably requested by OPIC to assist
in perfecting the security interest and Lien granted under this Agreement.

      SECTION 2.8 DISTRIBUTIONS; VOTING RIGHTS.

            (A) So long as no Event of Default with respect to a Pledgor, no
Fund Event of Default, and no event or condition that, with the passage of time
or the giving of notice, or both, would constitute an Event of Default with
respect to such Pledgor or a Fund Event of Default, shall have occurred and be
continuing, such Pledgor shall have the right to receive and retain cash
distributions derived directly or indirectly from the Fund, provided, however,
that any and all (i) distributions paid or payable other than in cash in respect
of, and instruments and other property received, receivable or otherwise
distributed in respect of, or in exchange for, any part of the Collateral of
such Pledgor, (ii) distributions paid or payable in cash in respect of any part
of the Collateral of such Pledgor in connection with any liquidation or
dissolution of the Fund or the Managing Member, and (iii) cash paid, payable, or
otherwise distributed in redemption of,

                                     - 16 -
<PAGE>   21

or in exchange for, any part of the Collateral of such Pledgor, shall be, and
shall be forthwith delivered to OPIC or the Collateral Agent to hold as,
Collateral of such Pledgor and shall, if received by such Pledgor, be received
in trust for the benefit of OPIC, be segregated from the other funds and
property of such Pledgor, and be forthwith delivered to OPIC or the Collateral
Agent as Collateral of such Pledgor in the same form as so received (with any
necessary endorsement); and

            (B) So long as no Event of Default with respect to a Pledgor shall
have occurred and be continuing, such Pledgor shall have the right to exercise
any and all voting and other consensual rights, interests and claims pertaining
to the Collateral of such Pledgor or any part thereof for any purpose not
inconsistent with this Agreement.

      SECTION 2.9 ENFORCEMENT OF RIGHTS; NO WAIVER. OPIC and the Collateral
Agent may proceed to protect and enforce their rights hereunder in any court or
other tribunal by an action at law, suit in equity or other appropriate
proceedings, whether for damages, for the specific performance of any term
hereof, or otherwise, or in aid of the exercise of any power granted hereby or
at law, in equity, by statute or otherwise. No failure by OPIC or the Collateral
Agent to exercise, and no delay by OPIC or the Collateral Agent in exercising,
any right, power or remedy hereunder, and no course of dealing between OPIC and
any of the Pledgors, shall operate as a waiver thereof or otherwise impair or
prejudice any of the rights, powers or remedies of OPIC or the Collateral Agent
hereunder. No single or partial exercise of any right, power or remedy hereunder
by OPIC or the Collateral Agent shall preclude any other or further exercise
thereof or the exercise of any other rights, powers or remedies hereunder. No
waiver of any right, power or remedy of OPIC or the Collateral Agent hereunder
shall be effective unless given in writing and then only to the extent expressly
set forth in such writing. The rights, powers and remedies of OPIC or the
Collateral Agent hereunder are cumulative and are not exclusive of any other
right, power or remedy referred to herein or now or hereafter available at law,
in equity, by statute or otherwise. The assertion or exercise of any right,
power or remedy by OPIC or the Collateral Agent shall not prevent the concurrent
or successive assertion of any other right, power or remedy.

      SECTION 2.10 NATURE OF OBLIGATIONS; SURVIVAL. The obligations of each
Pledgor under this Agreement are: (a) independent of the obligations of each
other Pledgor, and shall not be affected or impaired by the execution and
delivery, failure of execution and delivery, or breach of this Agreement or any
agreement by any other Pledgor, (b) absolute, unconditional and irrevocable,
full recourse and general obligations of such Pledgor, and (c) shall be
satisfied strictly in accordance with the terms of this Agreement, under all
circumstances whatsoever. All covenants, agreements, representations and
warranties of such Pledgor made herein or in any certificate, document or
instrument delivered pursuant hereto shall survive the making of the Loan and
the maturity date of the Notes and shall continue in full force and effect for
so long as any of the Secured Obligations of such Pledgor remains unpaid and to
be performed and satisfied. Upon the payment, performance and satisfaction in
full of the Secured Obligations of such Pledgor, the security interest and Lien
granted hereunder by such Pledgor shall terminate and all rights of OPIC in the
Collateral of such Pledgor shall revert to such Pledgor. Upon any such
termination,

                                     - 17 -
<PAGE>   22

OPIC and the Collateral Agent will, at such Pledgor's expense, execute and
deliver to such Pledgor such documents as such Pledgor shall reasonably request
to evidence such termination.

      SECTION 2.11 FINANCING PARTIES AND PLEDGORS REMAIN LIABLE. Notwithstanding
anything herein to the contrary, (a) each Pledgor and each Financing Party, as
the case may be, shall remain liable under the Indemnity Agreement, the
Subordination Agreement, the Finance Agreement, the Notes and all other
Financing Documents, in each case to which it is a party and to the extent set
forth therein, to perform all of its respective duties and obligations
thereunder to the same extent as if this Agreement had not been executed, (b)
the exercise by OPIC, the Collateral Agent or any Sub-Agent of any rights,
powers or remedies hereunder shall not release any Pledgor or Financing Party,
as the case may be, from any of its duties or obligations under the Indemnity
Agreement, the Subordination Agreement, the Finance Agreement, the Notes or any
Financing Document, in each case to which it is a party, (c) neither OPIC nor
the Collateral Agent shall, by reason of this Agreement, (i) have any obligation
or liability under any other Financing Document, including the Charter Documents
of the Fund or the Managing Member, or (ii) be obligated to perform any of the
obligations or duties of any Pledgor or any Financing Party thereunder or to
take any action to collect or enforce any claim for payment assigned hereunder.

      SECTION 2.12 ATTORNEY-IN-FACT AND PROXY.

            (A) Without limiting any rights or powers granted by this Agreement
to OPIC or the Collateral Agent, each Pledgor hereby irrevocably appoints each
of OPIC and the Collateral Agent as its attorney-in-fact and agent coupled with
an interest, with full power of substitution and full authority in the place and
stead of such Pledgor and in its name or otherwise, from time to time in OPIC's
or the Collateral Agent's discretion to take any action and to execute any
instrument that OPIC or the Collateral Agent may deem necessary or advisable to
accomplish the purposes of this Agreement, including (i) upon the occurrence and
continuance of an Event of Default with respect to such Pledgor, (A) to execute
any deeds of conveyance, or other documents or instruments necessary to convey
all right, title, claim and interest of such Pledgor in and to its Collateral to
any purchaser thereof, (B) to ask, demand, collect, sue for, recover, compound,
receive and give acquittance and receipts for moneys due and to become due under
or in connection with such Collateral, (C) to receive, endorse and collect any
drafts or other instruments, documents and chattel paper in connection with such
Collateral, and (D) to file any claims or take any action or institute any
proceeding that OPIC or the Collateral Agent may deem necessary or desirable for
the collection thereof, and (ii) at any time and from time to time to execute
and file any and all financing statements (including the Financing Statements),
continuation statements or amendments thereto relating to all or any part of the
Collateral of such Pledgor.

            (B) Each Pledgor hereby irrevocably appoints each of OPIC and the
Collateral Agent by and through its authorized officers (acting alone) as proxy,
with full power of substitution and entitlement, upon the occurrence and during
the continuance of an Event of

                                     - 18 -
<PAGE>   23

Default with respect to such Pledgor, to vote such Pledgor's Pledged Interest in
the place and stead of such Pledgor subject to Section 2.8(b).

            (C) Each proxy and power of attorney granted by each Pledgor
pursuant to this Section 2.12 is coupled with an interest and shall not be
affected by the subsequent disability, incapacity, bankruptcy, dissolution, or
termination of such Pledgor or any other Person.

      SECTION 2.13 OPIC MAY PERFORM. If any Pledgor fails to perform any
agreement contained herein, OPIC or the Collateral Agent may (but shall not be
obligated to) itself perform, or cause performance of, such agreement, and the
expenses of OPIC and the Collateral Agent incurred in connection therewith shall
be payable by such Pledgor in accordance with Section 5.2.

      SECTION 2.14 SECURITY INTEREST ABSOLUTE.

            (A) All rights of OPIC and the security interest and Lien granted
hereunder by each Pledgor, and all obligations of such Pledgor hereunder, (i)
shall be absolute and unconditional, (ii) shall not be satisfied or discharged
by any intermediate or partial payment, (iii) shall terminate only upon payment,
performance and satisfaction in full of all of the Secured Obligations of such
Pledgor, (iv) shall not, to any extent or in any way, be reduced, limited,
terminated, discharged, subject to any set off, deduction or counterclaim by or
against such Pledgor or any other Person, and (v) shall not be impaired, or
otherwise affected by: (A) any invalidity or unenforceability of the Indemnity
Agreement, the Subordination Agreement, the Finance Agreement, any Note or any
other Financing Document, (B) any change in the time, manner or place of payment
or performance of, or in any other term of, all or any of the Secured
Obligations of such Pledgor or any other Pledgor, or any other amendment or
waiver of, or any consent to, any departure from the Indemnity Agreement, the
Finance Agreement, the Subordination Agreement, any Note or any other Financing
Document, (C) any exchange, release or non-perfection of any other collateral,
or any release or amendment or waiver of, or consent to departure from, any
guaranty, for all or any of the Secured Obligations of such Pledgor or any other
Pledgor, or (D) any other circumstance that might otherwise constitute a defense
available to, or a discharge of, such Pledgor or any other Pledgor in respect of
any of the Secured Obligations.

            (B) Each Pledgor, solely in its capacity as a pledgor hereunder,
agrees that (i) without the necessity of any reservation of rights against,
without notice to, and without the assent of, such Pledgor or any other Person,
any demand for payment and performance of any of the Secured Obligations of such
Pledgor made by the Collateral Agent, upon instructions from OPIC, may be
continued, (ii) such Secured Obligations, or the liability of such Pledgor for
any part thereof, or any other collateral security (including any collateral
security held pursuant to any other Security Document) or guaranty therefor or
right of set off with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, modified, accelerated, waived, surrendered,
compromised or released by the Collateral Agent, on behalf of and upon
instructions from OPIC, (iii) any of the Financing Documents, including any of
the Security Documents, may be amended, modified or supplemented in accordance
with the terms thereof or terminated, in

                                     - 19 -
<PAGE>   24

whole or in part, as OPIC and the other parties thereto (to the extent required
by the terms thereof) may deem advisable, from time to time, and (iv) any other
collateral security at any time held by OPIC, the Collateral Agent or any
Sub-Agent for the payment, performance and satisfaction of the Secured
Obligations of such Pledgor (including any collateral security held pursuant to
any other Security Document) after the occurrence of an Event of Default and in
accordance with the terms of this Agreement may be sold, exchanged, waived,
surrendered or released by OPIC or by the Collateral Agent or any Sub-Agent, on
behalf of and upon the instructions of OPIC, all without notice to or further
consent by such Pledgor (except as otherwise expressly provided herein), and
such Pledgor shall remain bound hereunder notwithstanding any such action.

            (C) Each Pledgor waives any and all notices of the creation,
renewal, extension or accrual of any of the Secured Obligations of such Pledgor
or any other Pledgor, as well as notice of or proof of reliance by OPIC upon
this Agreement. The Secured Obligations of each Pledgor shall conclusively be
deemed to have been created, contracted or incurred in reliance upon this
Agreement, and all dealings between each Pledgor and OPIC shall likewise be
conclusively presumed to have been had or consummated in reliance upon this
Agreement.

            (D) Except as otherwise expressly provided in this Agreement, in the
Indemnity Agreement or in the Subordination Agreement, each Pledgor waives any
demand for payment and notice of default or non-payment to or upon any other
Pledgor or other Person with respect to any of the Secured Obligations.

      SECTION 2.15 OPIC'S DUTIES. The rights and powers conferred on each of
OPIC and the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such rights
or powers. Except for the safe custody of any part of the Collateral in its
possession, dominion and control and the accounting for moneys actually received
by it hereunder, neither OPIC nor the Collateral Agent shall have any duty as to
any part of the Collateral or as to the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any part
of the Collateral.

      SECTION 2.16 APPOINTMENT OR SUB-AGENT; ENDORSEMENTS, ETC. OPIC shall have
the right to appoint one or more Sub-Agents for the purpose of retaining
physical possession, dominion and control of the Collateral of each Pledgor,
which may be held (in the discretion of OPIC) in the name of such Pledgor,
endorsed or signed by an Authorized Officer of such Pledgor in blank or in favor
of OPIC or any nominee or nominees of OPIC or a Sub-Agent appointed by OPIC.
OPIC agrees to promptly notify the Pledgors after the appointment of any
Sub-Agent; provided, however, that the failure to give such notice shall not
effect the validity of such appointments.

      SECTION 2.17 OPIC TO DIRECT THE COLLATERAL AGENT. OPIC shall direct the
time, method and place of conducting any proceeding for any remedy available to
the Collateral Agent, or exercising any power conferred on the Collateral Agent
hereunder; provided, however, that the Collateral Agent shall have the right to
decline to follow any such direction if the Collateral Agent

                                     - 20 -
<PAGE>   25

in good faith shall, by a responsible officer of the Collateral Agent, determine
that the proceedings or other action so directed would involve it in personal
liability or would conflict with applicable law or this Agreement.
Notwithstanding anything to the contrary in this Agreement, the Collateral Agent
shall have no duty or responsibility whatsoever to perform any of its
obligations or duties under any provision of this Agreement in any location
other than the Commonwealth of Massachusetts, the U.S. federal courts in the
State of New York or the District of Columbia, or in an arbitration proceeding
in the Washington, D.C. metropolitan area.

      SECTION 2.18 EFFECTIVENESS.

            (A) Each Pledgor shall, contemporaneously with its execution and
delivery of this Agreement: (a) deliver to OPIC and the Collateral Agent, an
original, completed Exhibit B-1, B-2, B-3, B-4 or B-5, as applicable, duly
executed by one or more of its Authorized Officers; (b) deliver to OPIC and the
Collateral Agent an original, completed Exhibit C-1 or C-2, duly executed by an
Authorized Officer of each of the Fund and the Managing Member; (c) deliver to
OPIC an original, completed Financing Statement, duly executed by one of its
Authorized Officers, substantially in the form of Exhibit D-1, D-2, D-3 or D-4,
as applicable; (d) deliver to OPIC an original, completed and undated
Irrevocable Power of Attorney, duly executed by one of its Authorized Officers,
substantially in the form of Exhibit E-1, E-2, E-3 or E-4, as applicable, with
respect to its interest in each of the Managing Member and the Fund, as the case
may be; and (e) deliver to OPIC an original, completed and undated Instrument of
Transfer duly executed by one of its Authorized Officers, substantially in the
form of Exhibit F-1, F-2, F-3 or F-4, as applicable, with respect to its
interest in each of the Managing Member and the Fund, as the case may be.

            (B) In the event that any Authorized Officer who has executed, or
whose facsimile signature has been placed upon, any Notice, certificate,
instrument or other document, including any power of attorney or instrument of
transfer of an equity interest in any Person, delivered in accordance with this
Agreement, shall cease to be an Authorized Officer, whether because of death,
resignation or otherwise, before such Notice, certificate, instrument or other
document, including any power of attorney or instrument of transfer of an equity
interest in any Person, is presented or otherwise used or applied for the
purpose provided, such Notice, certificate, instrument or other document,
including any power of attorney or instrument of transfer of an equity interest
in any Person, shall nevertheless have the same force and effect as if the
person whose signature appears thereon continued to be an Authorized Officer as
of the date of presentation or other use and application and as if executed on
such date.

                                     - 21 -
<PAGE>   26

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

      SECTION 3.1 REPRESENTATIONS AND WARRANTIES OF THE PLEDGORS. Each Pledgor,
severally but not jointly, represents, covenants, and warrants to OPIC, solely
with respect to itself, effective as of the date hereof and on each date on
which it pledges Collateral hereunder, that:

            (A) it is duly formed, validly existing and in good standing under
the laws of its state of formation or organization and has all requisite power
and authority, partnership, corporate, limited liability company or otherwise,
to carry on its business as conducted and proposed to be conducted and to
execute, deliver and perform all of its obligations under this Agreement;

            (B) each of its Charter Documents, true and complete copies of which
have been furnished to OPIC, (i) has been duly authorized, executed and
delivered, (ii) has not been amended or otherwise modified or supplemented since
its delivery to OPIC so as to prohibit or prevent the transactions contemplated
by this Agreement, (iii) is in full force and effect, and (iv) is binding upon
and enforceable against each of the parties thereto, if any, in accordance with
its terms, except as such enforceability may be affected by bankruptcy,
insolvency, moratorium or similar laws affecting the rights of creditors
generally and by the application of general principles of equity (whether in a
proceeding in equity or at law);

            (C) no party to its Charter Documents is in default in the
performance of any covenant or obligation set forth therein;

            (D) (i) this Agreement has been duly executed and delivered by it
and constitutes its legal, valid, and binding obligation enforceable against it
in accordance with the terms contained herein, except as such enforceability may
be affected by bankruptcy, insolvency, moratorium or similar laws affecting the
rights of creditors generally and by the application of general principles of
equity (whether in a proceeding in equity or at law), and (ii) its execution,
delivery and performance of this Agreement and the pledge of, and assignment,
grant and creation of a security interest in and Lien on, its Collateral in
accordance herewith (A) have been duly authorized by all necessary or advisable
partnership, limited liability company or other action, (B) do not require the
consent or approval of any of its creditors or any other Person that has not
been duly obtained, and (C) will not conflict with, constitute a breach under,
or violate any provision of, any agreement, law, regulation, judgment,
injunction, decree, determination or award presently in effect applying to it,
or violate any provisions of its Charter Documents;

            (E) (i) it is the sole legal and beneficial owner of, and has good
title to all, of its Collateral, (ii) owns its Collateral free and clear of any
adverse Lien thereon, other than the security interest and Lien granted
hereunder, and (iii) has and shall maintain the unqualified right and power to
pledge, and assign, grant and create a security interest in and Lien on, its
Collateral pursuant to this Agreement without the consent of any other Person;

                                     - 22 -
<PAGE>   27

            (F) (i) its Pledged Interest (A) has been and at all times will be
duly authorized and validly issued in compliance with applicable federal and
state securities laws, and (B) is and will be (1) free from any contractual or
consensual restriction or transfer binding on OPIC or its successors and assigns
and (2) free of preemptive rights, in each case, other than as expressly set
forth in the Charter Documents of the Fund or the Managing Member, (ii) all
capital contributions required to be made with respect to its Pledged Interest
as of the date hereof have been made, and (iii) all documentary, stamp or other
taxes or fees that may be owing in connection with the issuance, transfer, and
pledge of its Pledged Interest have been paid by or on behalf of it;

            (G) it has not granted, created, assigned or suffered to exist any
Lien on or with respect to any of its Collateral, other than the security
interest and Lien granted hereunder and such Liens as may be granted in favor of
OPIC or the Collateral Agent for the benefit of OPIC under any other Financing
Document, and no effective financing statement or other instrument similar in
effect covering all or any part of its Collateral is on file in any recording
office, except such as may have been filed in favor of OPIC or the Collateral
Agent for the benefit of OPIC relating to this Agreement or any other Financing
Document;

            (H) subject to the registration of the pledge hereunder in the
appropriate register, and the completion and filing of the Financing Statements,
this Agreement creates a legal, valid and enforceable perfected first priority
security interest in and Lien on all of its Collateral in favor of the
Collateral Agent for the benefit of OPIC, which security interest and Lien
secure the payment, performance and satisfaction of the Secured Obligations of
such Pledgor, and except for the filing of the Financing Statements, no Consent
and Approval or other action by, and no notice to or filing or registration
with, any court or Governmental Authority of any jurisdiction is required either
(i) for the pledge and grant of a security interest in and Lien on its
Collateral by such Pledgor pursuant to this Agreement or for the valid
execution, delivery or performance of this Agreement by such Pledgor, or (ii)
for the exercise by OPIC of the voting or other rights provided for in this
Agreement or the remedies in respect of such Collateral pursuant to this
Agreement (except as may be required in connection with the sale by or for the
benefit of OPIC of such Collateral (or OPIC's interest therein) to a third party
by laws affecting the offering and sale of securities generally or by laws which
may be applicable by virtue of the nature or identity of the purchaser of such
Collateral (or OPIC's interest therein), which nature or identity cannot now be
determined);

            (I) its principal place of business and chief executive office and
the office where it keeps its records concerning its Collateral are located at
the address specified for it in Exhibit A;

            (J) it does not conduct business under any name other than the name
set forth in the preamble to this Agreement; and

            (K) all written statements or other information provided by such
Pledgor to the Collateral Agent or OPIC describing the Collateral are or (in the
case of subsequently furnished information will be when provided) correct and
complete in all material aspects. The delivery at

                                     - 23 -
<PAGE>   28

any time by such Pledgor to the Collateral Agent, a Sub-Agent or OPIC of
additional Collateral or of additional written descriptions of Collateral shall
constitute a representation and warranty by such Pledgor to OPIC and the
Collateral Agent that the representations and warranties by such Pledgor under
this Section 3.1(k) are complete and correct insofar as they would pertain to
such Collateral or the description thereof.

                                   ARTICLE IV
                                    COVENANTS

      SECTION 4.1 AFFIRMATIVE COVENANTS OF THE PLEDGORS. Unless OPIC otherwise
agrees in writing, each Pledgor, so long as any of the Secured Obligations of
such Pledgor shall remain outstanding and until payment, performance and
satisfaction thereof in full, covenants and agrees, severally but not jointly,
as follows:

            (A) to warrant and defend the right, title, claim and interest of
OPIC and the Collateral Agent conferred by this Agreement in and to its
Collateral (at the cost of such Pledgor) against the claims and demands of all
persons whomsoever;

            (B) promptly to execute and deliver to OPIC or the Collateral Agent,
from time to time, all such other assignments, certificates, supplemental
writings and financing statements and to do all other acts or things, as OPIC or
the Collateral Agent may reasonably request in order more fully to evidence and
perfect the security interest and Lien granted hereunder by such Pledgor;

            (C) to furnish promptly to OPIC and the Collateral Agent, from time
to time, such information and reports regarding its Collateral as OPIC or the
Collateral Agent may reasonably request;

            (D) to allow any representatives of OPIC or the Collateral Agent,
upon reasonable notice from OPIC or the Collateral Agent, access during normal
business hours to, and permit them to examine, copy and make extracts from, any
and all records and documents in the possession or subject to the dominion or
control of such Pledgor relating to its Collateral;

            (E) except as permitted under Sections 6.1(b) and 7.11 of the
Finance Agreement, to continue to be the sole legal and beneficial owner of, and
to maintain good title to, all of its Collateral;

            (F) to pay all documentary, stamp, or other taxes or fees that may
be owing in connection with the issuance, transfer, and pledge of its Collateral
hereunder, as such become due and payable; and

            (G) to give each of the Collateral Agent and OPIC prompt notice of
any written claim relating to its Collateral or the imposition of any Lien
thereon, and to deliver to OPIC and

                                     - 24 -
<PAGE>   29

the Collateral Agent a copy of each demand, notice or document received by it
which may adversely affect OPIC's interest in such Collateral promptly upon such
Pledgor's receipt thereof.

      SECTION 4.2 PLACE OF BUSINESS AND NAME.

            (A) Each of the Pledgors shall keep its principal place of business
and chief executive office and the office where it keeps its records concerning
its Collateral at the address specified for it in Exhibit A, or upon thirty (30)
days prior written notice to OPIC and the Collateral Agent, at such other
location in a jurisdiction where all action required to perfect the security
interest and Lien granted hereunder shall have been taken with respect to the
Collateral.

            (B) Each Pledgor shall not change its legal name or assume or
operate in any jurisdiction under any trade, fictitious or other name unless (i)
it shall have given to OPIC and the Collateral Agent not less than thirty (30)
days' prior written notice of its intention so to do, clearly describing such
new name and the jurisdictions in which such new name shall be used and
providing such other information in connection therewith as OPIC or the
Collateral Agent may reasonably request and (ii) with respect to such new name,
it shall have taken all action, reasonably satisfactory to OPIC and the
Collateral Agent, to ensure that the security interest and Lien granted by such
Pledgor hereunder at all times remains in full force and effect and continues to
be a legal, valid and enforceable perfected first priority security interest in
and Lien on all of the Collateral of such Pledgor.

      SECTION 4.3 NEGATIVE COVENANTS OF THE PLEDGORS. So long as any of the
Secured Obligations of a Pledgor shall remain outstanding and until payment,
performance and satisfaction thereof in full, such Pledgor shall not:

            (A) except as expressly provided in, and in accordance with, Section
2.3, sell, assign (by operation of law or otherwise), transfer, convey or
otherwise dispose of, or grant any option with respect to, all or any part of
its Collateral;

            (B) grant, create, assign, incur, cause the imposition of, or suffer
to exist any Lien on or with respect to any of its Collateral, other than the
security interest and Lien granted hereunder and such Liens as may be granted in
favor of OPIC or the Collateral Agent for the benefit of OPIC under any other
Security Document, nor file or permit to be on file at any time in any recording
office any effective financing statement or other instrument similar in effect
covering all or any part of its Collateral, except such as may at any time be
filed in favor of OPIC or the Collateral Agent for the benefit of OPIC relating
to this Agreement or any other Financing Document;

            (C) except as permitted under Section 7.4 of the Finance Agreement,
consent to or accept any cancellation, termination, rescission, amendment,
modification or suspension of any of the Fund Operating Agreement or the
Managing Member Operating Agreement;

                                     - 25 -
<PAGE>   30

            (D) take any other action in connection with any of the Collateral
or its Charter Documents which would materially impair its interest or rights in
its Collateral or which would impair the interests or rights of OPIC or the
Collateral Agent therein; or

            (E) acquire any Securities (as defined in the Finance Agreement)
issued by or in any Financing Credit Party other than the Fund.

                                    ARTICLE V
                                  MISCELLANEOUS

      SECTION 5.1 CONCERNING THE COLLATERAL AGENT.

            (A) OPIC hereby appoints State Street Bank and Trust Company to act
as its Collateral Agent and to take such action on behalf of OPIC and to
exercise such powers under this Agreement as are expressly delegated to the
Collateral Agent by the terms hereof. State Street Bank and Trust Company hereby
accepts such appointment and agrees to act as Collateral Agent upon the express
terms and conditions contained in this Agreement. In the event that the
Collateral Agent shall fail for any reason to follow any instructions given to
the Collateral Agent by OPIC in accordance with the terms of this Agreement or
any other Financing Document, the Collateral Agent agrees, upon OPIC's request,
promptly to turn over to OPIC or its Sub-Agent any and all of the Collateral
then in the Collateral Agent's possession, dominion or control or maintained in
the name of the Collateral Agent.

            (B) Any remedies set forth in this Agreement (including the remedies
set forth in Section 2.4) may, at OPIC's option, be exercised by OPIC or the
Collateral Agent or any Sub-Agent acting for the benefit of and pursuant to the
instructions of OPIC, provided, however, that, prior to the exercise of such
remedies by the Collateral Agent, OPIC and the Collateral Agent shall enter into
an agreement reasonably satisfactory to both parties compensating the Collateral
Agent for its costs and expenses (including reasonable legal fees) arising out
of or related to its exercise of such remedies, and provided further, however,
that if OPIC and the Collateral Agent shall fail to enter into such an
agreement, the Collateral Agent shall promptly turn over to OPIC or its
Sub-Agent all of the Collateral then in the Collateral Agent's possession,
dominion or control or maintained in the name of the Collateral Agent.

            (C) The Collateral Agent hereby irrevocably waives, releases and
agrees not to assert any Lien on the Collateral of any Pledgor, express or
implied, statutory or otherwise, except for the security interest and Lien
granted hereunder by each such Pledgor for the benefit of OPIC. In the event
that after the payment, performance and satisfaction in full of all of the
Secured Obligations of a Pledgor, OPIC is in possession of or has dominion or
control over funds belonging to such Pledgor under applicable law, such Pledgor
hereby irrevocably instructs OPIC to pay to the Collateral Agent out of such
funds, amounts that the Collateral Agent states in writing to OPIC and such
Pledgor are due and owing to the Collateral Agent from such Pledgor under this
Agreement; provided, however, that OPIC shall in no event have any liability to
any

                                     - 26 -
<PAGE>   31

Pledgor or the Collateral Agent for any payment made or to be made to the
Collateral Agent in accordance with this Section 5.1.

            (D) The Collateral Agent shall exercise the same degree of care
toward the Collateral of each Pledgor as it exercises toward its own similar
property and shall not be held to any higher standard of care under this
Agreement, nor be deemed to owe any fiduciary duty to such Pledgor or any other
Person in connection with this Agreement. The Collateral Agent shall be
obligated to perform only such duties as are expressly set forth in this
Agreement. No implied covenants or obligations shall be inferred from this
Agreement against the Collateral Agent, nor shall the Collateral Agent be bound
by the provisions of any other agreement to which it is not a party.

            (E) Neither the Collateral Agent nor OPIC shall be liable hereunder
except for their respective own gross negligence or willful misconduct and each
of TPG and PREA (jointly and severally as between each other), on the one hand,
and BOCHC, on the other hand, severally but not jointly, agrees to indemnify
each of the Collateral Agent and OPIC for, and hold each harmless as to, fifty
percent (50%) of any loss, liability, or expense, including attorney's fees and
expenses, incurred without gross negligence or willful misconduct on the part of
the Collateral Agent or OPIC and arising out of or in connection with the
Collateral Agent's or OPIC's duties under this Agreement. Specifically and
without limiting the foregoing, neither the Collateral Agent nor OPIC shall have
any liability in connection with the investment, reinvestment or liquidation, in
good faith and in accordance with the terms hereof, of any part of the
Collateral held by the Collateral Agent hereunder, including any liability for
any delay not resulting from gross negligence or willful misconduct in such
investment, reinvestment or liquidation, or for any loss of income incident to
any such delay. In no event shall the Collateral Agent be liable (A) for acting
in accordance with instructions, directions or requests from OPIC or any Pledgor
(but only to the extent that such Pledgor may permissibly give instructions,
directions or requests to the Collateral Agent pursuant to the provisions
hereof), (B) for special or consequential damages, or (C) for the acts or
omissions of its correspondents, Sub-Agents or sub-custodians (other than any
nominee of the Collateral Agent, to the extent the Collateral Agent would
otherwise be liable hereunder), provided that the Collateral Agent selects such
correspondents, Sub-Agents or sub-custodians with reasonable care.

            (F) (i) The Collateral Agent shall be entitled to rely upon any
      order, judgment, certification, instruction, notice, opinion or other
      writing delivered to it in compliance with the provisions of this
      Agreement without being required to determine the authenticity or the
      correctness of any fact stated therein or the propriety or validity of
      service thereof. The Collateral Agent may act in reliance upon any
      instrument comporting with the provisions of this Agreement or signature
      believed by it to be genuine and may assume that any person purporting to
      give notice or receipt or advice or make any statement or execute any
      document in connection with the provisions hereof has been duly authorized
      to do so.

                                     - 27 -
<PAGE>   32

                  (ii) At any time, the Collateral Agent may request in writing
      an instruction in writing from OPIC or a Pledgor (but only to the extent
      that such Pledgor is entitled to give instructions to the Collateral Agent
      pursuant to the provisions hereof, and in any event, prior to payment,
      performance and satisfaction in full of the Secured Obligations of such
      Pledgor), and the Collateral Agent may at its own option include in such
      request the course of action it proposes to take and the date on which it
      proposes to act, regarding any matter arising in connection with its
      duties and obligations hereunder. The Collateral Agent need not act and
      shall not be liable for acting without a Pledgor's or OPIC's consent in
      accordance with such a proposal on or after the date specified therein,
      provided, however, that the specified date shall be at least two (2)
      Business Days after such Pledgor or OPIC, as the case may be, receives the
      Collateral Agent's request for instructions and its proposed course of
      action, and provided further that, prior to so acting, the Collateral
      Agent has not received the written instructions requested.

            (G) (i) The Collateral Agent does not and shall not have any
      interest in any part of the Collateral hereunder, shall serve only as
      Collateral Agent for the benefit of OPIC and, in connection therewith,
      shall only have possession of, and dominion and control over, the
      Collateral in accordance herewith. The Collateral Agent shall not grant,
      create, assign, incur or cause the imposition of any Lien upon the
      Collateral of any Pledgor other than the Lien granted hereunder by such
      Pledgor.

                  (ii) The Collateral Agent makes no representation as to the
      validity, value, genuineness or collectability of any Security or other
      document or instrument held by or delivered to it.

                  (iii) The Collateral Agent shall not be called upon to advise
      any party as to selling or retaining, or taking or refraining from taking
      any action with respect to, any part of the Collateral hereunder.

                  (iv) In the event of any ambiguity in the provisions of this
      Agreement or any dispute between or conflicting claims by or among any
      Pledgor and/or any other Person with respect to any of the Collateral
      hereunder, the Collateral Agent shall be entitled, at its sole option, to
      refuse to comply with any and all claims, demands or instructions with
      respect to such Collateral so long as such dispute or conflict shall
      continue, and the Collateral Agent shall not be or become liable in any
      way to such Pledgor or any other Person for its failure or refusal to
      comply with such conflicting claims, demands or instructions. The
      Collateral Agent shall be entitled to refuse to act until, at its sole
      option, either such conflicting or adverse claims or demands shall have
      been finally determined by a court of competent jurisdiction or settled by
      agreement between the conflicting parties as evidenced in a writing,
      satisfactory to the Collateral Agent, or the Collateral Agent shall have
      received security or an indemnity satisfactory to the Collateral Agent
      sufficient to save the Collateral Agent harmless from and against any and
      all loss, liability or expense which the Collateral Agent may incur. The
      Collateral Agent may in addition elect at its sole option to commence an
      interpleader action or seek

                                     - 28 -
<PAGE>   33

      other judicial relief or orders as the Collateral Agent may deem
      necessary. Notwithstanding the foregoing, in the event that the Collateral
      Agent shall refuse promptly to comply with an instruction given by OPIC
      pursuant to the provisions hereof, the Collateral Agent shall, at its sole
      option, either (A) promptly turn over all of the Collateral in the
      Collateral Agent's possession, dominion or control or maintained in its
      name to OPIC or its Sub-Agent, or (B) promptly commence an action
      interpleading all of the Collateral into the registry of a court having
      jurisdiction over such an action.

                  (v) No provision of this Agreement shall require the
      Collateral Agent to expend or risk its own funds or otherwise incur any
      financial liability in the performance of any of its duties hereunder.

                  (vi) For purposes of the duties of the Collateral Agent
      hereunder, an Event of Default with respect to a Pledgor shall occur or be
      deemed to occur when, but only if, the Collateral Agent shall have
      received a Notice of Default from OPIC with respect to such Pledgor.

                  (vii) In the event that any Person other than OPIC asserts or
      gives the Collateral Agent notice of the imposition of any Lien against
      any of the Collateral, the Collateral Agent shall not comply, or agree to
      comply, with any direction, instructions or orders of any Person other
      than OPIC with respect to such Collateral without the prior written
      consent of OPIC or except as provide herein.

                  (viii) Except as directed by a Pledgor or OPIC in writing in
      accordance with the terms of this Agreement, neither the Collateral Agent
      nor OPIC has any duty to see to (A) any recording, filing, or depositing
      of this Agreement or any agreement referred to herein or any financing
      statement or continuation statement evidencing a security interest, or to
      see to the maintenance of any such recording or filing or depositing or to
      any rerecording, refiling or redepositing of any thereof, or (B) the
      payment or discharge or any tax, assessment, or other governmental charge
      or any lien or encumbrance of any kind owing with respect to, or assessed
      or levied against, any part of the Collateral from funds available in the
      Retention Accounts.

                  (ix) Neither the Collateral Agent nor OPIC shall have any duty
      to (A) see to any insurance or (B) confirm or verify the contents of any
      reports or certificates of any Pledgor delivered to the Collateral Agent
      pursuant to this Agreement believed by the Collateral Agent to be genuine
      and to have been signed or presented by the proper party or parties.

                  (x) Notwithstanding anything to the contrary in this
      Agreement, the exercise or failure of exercise by the Collateral Agent of
      any rights or remedies hereunder shall not preclude the exercise of the
      same or similar rights or remedies by OPIC or such Sub-Agent as OPIC has
      designated.

                                     - 29 -
<PAGE>   34

                  (xi) The provisions of this Section 5.1(g) shall survive the
      termination of this Agreement and/or the resignation or removal of the
      Collateral Agent.

            (H) (i) The Collateral Agent may resign at any time by giving not
      less than sixty (60) days prior written notice to the Pledgors and OPIC.
      If a successor Collateral Agent is not appointed by OPIC or has not
      accepted such appointment within such sixty (60) days, the Collateral
      Agent may apply to a court of competent jurisdiction for the appointment
      of a successor Collateral Agent.

                  (ii) OPIC may remove the Collateral Agent upon written notice
      to the Collateral Agent signed by OPIC. Such removal shall take effect
      upon delivery of the Collateral then in the possession, dominion or
      control of the Collateral Agent or maintained in its name to a successor
      Collateral Agent designated in writing by OPIC, and the Collateral Agent
      shall thereupon be discharged from all obligations under this Agreement
      and shall have no further duties or responsibilities in connection
      herewith. The Collateral Agent shall deliver all of the Collateral to the
      successor Collateral Agent without unreasonable delay after receiving
      OPIC's designation of a successor Collateral Agent, and shall execute such
      instruments of transfer and assignment with respect to its possession of,
      or dominion and control over, the Collateral, as OPIC requests, without
      unreasonable delay after receiving notice of OPIC's designation of a
      successor Collateral Agent.

            (I) (i) The Collateral Agent represents and warrants to OPIC and the
      Pledgors that (A) it has all requisite power and authority to execute,
      deliver and perform its obligations hereunder, and all action necessary
      for the due execution, delivery and performance of this Agreement by it
      has been duly and effectively taken, (B) it is not a party to any
      agreement (other than this Agreement) with respect to the possession of,
      or dominion or control over, or the investment, reinvestment or
      liquidation of, the Collateral, (C) it has not granted, created, assigned
      or caused the imposition of any Lien on any part of the Collateral (other
      than the security interest and Lien granted hereunder) and (D) it is a
      securities intermediary (as such term is defined in the UCC), (E) it
      acknowledges and will abide by (i) the rights of each of the Collateral
      Agent and OPIC as an entitlement holder (as such term is defined in the
      UCC) with respect to the Collateral and (ii) its obligations as a
      securities intermediary in connection with the Collateral, and (F) it is
      not aware of any Lien on the Collateral (other than the security interest
      and Lien granted hereunder).

                  (ii) The Collateral Agent and any successor shall at all times
      be a corporation or other association doing business under the laws of the
      United States (or any political subdivision thereof) which meets the
      requirements of a Qualifying Bank. If, at any time, the Collateral Agent
      shall cease to qualify in accordance with the provisions of this Section
      5.1(i), the Collateral Agent shall immediately notify the parties hereto,
      and OPIC may, in its sole discretion, direct the Collateral Agent to
      transfer the Collateral to such other banking institution as OPIC shall
      specify that satisfies the requirements specified in this Section 5.1(i).

                                     - 30 -
<PAGE>   35

            (J) Any corporation or other association into which the Collateral
Agent may be merged or converted or with which it may be consolidated, or any
corporation or other association resulting from any merger, conversion or
consolidation to which the Collateral Agent shall be a party, or any corporation
or other association succeeding to all or substantially all of the corporate
trust business of the Collateral Agent, shall, if eligible and qualified as a
Qualifying Bank, automatically be the successor of the Collateral Agent without
further act; provided, however, that the Collateral Agent or its successor shall
promptly thereafter notify the other parties hereto regarding such succession.

            (K) (i) The Collateral Agent or its Affiliates may from time to time
      extend commitments to or have loans or other obligations outstanding from
      any Pledgor or any of its Affiliates, provided, however, that such
      commitments, loan or other obligations, or any obligation to pay, repay or
      perform such commitments, loans or other obligations, shall not be secured
      by any part of the Collateral.

                  (ii) The Collateral Agent, in its individual capacity, or any
      of its Affiliates, shall have the same rights, powers and authority to
      enter into any deposit agreement, loan agreement or any other banking or
      business relationship with any of the parties to any of the Financing
      Documents (without having to account therefor to any Person) as though it
      were not the Collateral Agent under this Agreement, provided, however,
      that any such deposit agreement, loan agreement or other banking or
      business relationship shall not relate to any part of the Collateral.

                  (iii) The Collateral Agent shall have no liability merely by
      virtue of the existence of any of the relationships described in
      paragraphs (i) and (ii) of this Section 5.1(k), other than by reason of
      its willful misconduct or negligence.

                  (iv) The Collateral Agent shall not, without the prior written
      consent of OPIC, (i) enter into any other agreement relating to the
      possession of, dominion and control over, or investment, reinvestment or
      liquidation of, the Collateral, or (ii) make any loan to, provide credit
      to, or otherwise enter into any financing arrangement with, any Person to
      the extent that such loan, credit or other financing arrangement is
      secured by any of the Collateral.

                  (v) In the event that any Person other than OPIC asserts or
      gives the Collateral Agent notice of the imposition of any Lien against
      the Collateral, the Collateral Agent shall promptly notify the Pledgors
      and OPIC thereof.

      SECTION 5.2 INDEMNITY; REIMBURSEMENT OF EXPENSES.

            (a) To the maximum extent permitted by law, each of TPG and PREA
(jointly and severally as between each other), on the one hand, and BOCHC, on
the other hand, severally but not jointly, agrees to defend, indemnify and hold
harmless the Collateral Agent and OPIC and their respective shareholders,
directors, officers, employees, agents, counsel, advisors,

                                     - 31 -
<PAGE>   36

subsidiaries and Affiliates (collectively, the "Indemnified Persons") from and
against any and all claims, losses, liabilities, obligations, damages,
penalties, actions, causes of action, judgments, assessments, suits, costs,
expenses or disbursements of any kind or nature whatsoever, including reasonable
legal fees and expenses (collectively, the "Indemnifiable Losses"), in an amount
equal to the percentage of each specified type of Indemnifiable Loss set forth
below, that may be imposed on, incurred by or asserted against any Indemnified
Person:

                  (i) 100% of any Indemnifiable Loss based on, in connection
      with, or arising out of, (A) any breach by such Pledgor (in the case of
      BOCHC) or any of such Pledgors (in the case of TPG and PREA) of this
      Agreement, the Indemnity Agreement or the Subordination Agreement, or (B)
      any attempt by OPIC or the Collateral Agent to enforce this Agreement with
      respect to such Pledgor (in the case of BOCHC) or any of such Pledgors (in
      the case of TPG and PREA); and

                  (ii) 50% of any Indemnifiable Loss based on, in connection
      with, or arising out of (A) OPIC's or the Collateral Agent's duties
      hereunder, or (B) any other lawsuits, complaints, actions or other pending
      or threatened litigation with respect to this Agreement;

provided, however, that none of the Pledgors shall be liable to any Indemnified
Person for any Indemnifiable Loss that resulted from the fraud, gross negligence
or willful misconduct of such Indemnified Person.

            (B) Each of TPG and PREA (jointly and severally as between each
other), on the one hand, and BOCHC, on the other hand, severally but not
jointly, shall be liable for, and shall pay to OPIC upon demand, an amount equal
to the percentage of each specified type of cost and expense set forth below,
including, in each case, the reasonable fees and expenses of the Collateral
Agent and of OPIC's counsel and of any experts and agents:

            (i) 50% of the costs and expenses incurred by OPIC or the Collateral
      Agent in connection with the administration of this Agreement; and

            (ii) 100% of the costs and expenses incurred by OPIC or the
      Collateral Agent in connection with (A) the custody or preservation of, or
      the sale of, collection from, or other realization upon, any of the
      Collateral of such Pledgor (in the case of BOCHC) or any of such Pledgors
      (in the case of TPG and PREA), (B) the exercise or enforcement of any of
      the rights of OPIC hereunder with respect to such Pledgor (in the case of
      BOCHC) or any of such Pledgors (in the case of TPG and PREA), and (C) the
      failure of such Pledgor (in the case of BOCHC) or such Pledgors (in the
      case of TPG and PREA) duly to perform or observe any of the provisions of
      this Agreement, the Indemnity Agreement or the Subordination Agreement.

            (C) The provisions of this Section 5.2 shall survive the termination
of this Agreement and/or the resignation or removal of the Collateral Agent.

                                     - 32 -
<PAGE>   37

      SECTION 5.3 NOTICES. Each report, demand, notice and other communication
to be given under this Agreement (a "Notice") shall be in writing in the English
language, be delivered by hand, overnight courier, registered or certified mail
(with all postage thereon prepaid), telegram, or facsimile and be deemed to have
been duly given when received by the addressee, or if sent by facsimile upon
transmission to the below specified number with confirmation of same (or on the
immediately succeeding Business Day, if received or transmitted either on a day
which is not a Business Day or after 5:00 p.m. on a day which is a Business Day,
in either case in the city where the principal office of the recipient is
situated), as follows:

            If to any Pledgor, to such Pledgor at the address specified for such
Pledgor in Exhibit A.

            If to the Fund or the Managing Member:

                  c/o Banc One Capital Holdings Corporation
                  Bane One Capital Corporation
                  OHI 0340
                  1101 30th Street, N.W.
                  Suite 200
                  Washington, DC 20007
                  Facsimile: (202) 333-1158
                  Telephone: (202) 337-6300
                  Attn: Mr. William A. Delphos, Managing Director

                  and to:

                  Pioneer Real Estate Advisors, Inc.
                  60 State Street
                  Boston, MA 02109
                  Facsimile: (617) 422-4286
                  Telephone: (617) 422-4804
                  Attn: Mr. Stephen G. Kasnet, President

                  and to:

                  The Pioneer Group, Inc.
                  60 State Street
                  Boston, MA 02109
                  Facsimile: (617) 422-4293
                  Telephone: (617) 422-4981
                  Attn: Robert P. Nault, Esq.

            If to OPIC:

                                     - 33 -
<PAGE>   38

                  Overseas Private Investment Corporation
                  1100 New York Avenue, N.W.
                  Washington, D.C. 20527
                  Attn: Administrator, Investment Funds Department
                  Telephone: (202) 336-8507
                  Facsimile: (202) 842-5194
                  with a copy to: Vice President and Treasurer
                  Telephone: (202) 336-8532
                  Facsimile: (202) 408-9862

            If to the Collateral Agent:

                  State Street Bank and Trust Company
                  2 International Place
                  Corporate Trust Administration, 4th Floor
                  Boston, MA 02110
                  Telephone: (617) 664-5526
                  Facsimile: (617) 664-5371
                  Attn:Mr. Paul D. Allen

Any party, by written notice to the other, may change the address to which such
communications should be sent to it.

      SECTION 5.4 AMENDMENTS. The provisions of this Agreement may be waived,
supplemented or amended only by an instrument in writing signed by an Authorized
Officer of the Pledgor affected thereby, the Fund, the Collateral Agent and
OPIC.

      SECTION 5.5 AUTHORIZED PERSONS. Each of the parties hereby designates the
persons whose names, titles and signatures appear on Exhibit B-1, B-2, B-3, B-4,
B-5, B-6 or B-7, as applicable, as its Authorized Officers with the authority to
execute and deliver this Agreement, any amendment hereto, any waiver hereof or
any Notice or other instrument contemplated hereunder in accordance with this
Agreement. Each of the parties may change the persons it has designated as its
Authorized Officers in accordance with this Agreement by delivering to all other
parties a completed Exhibit B-1, B-2, B-3, B-4, B-5, B-6 or B-7, as applicable,
signed by two or more of its remaining and/or newly-designated Authorized
Officers.

      SECTION 5.6 SUCCESSORS AND ASSIGNS; THIRD PARTY BENEFICIARIES. This
Agreement shall be binding upon and inure to the benefit of each of the parties
and their respective successors and assigns; provided, however, that none of the
Pledgors or the Fund shall, without the prior written consent of OPIC, assign or
delegate all or any part of its interests or obligations hereunder, except in
connection with a transfer of Collateral in accordance with Section 2.3. By
executing this Agreement, the parties do not intend to provide any third party
with any rights or benefits under any term of this Agreement, except as
expressly set forth in Section 5.2.

                                     - 34 -
<PAGE>   39

      SECTION 5.7 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES
OF AMERICA, EXCEPT TO THE EXTENT THAT (A) THE VALIDITY, PRIORITY OR PERFECTION
OF THE SECURITY INTEREST AND LIEN GRANTED HEREUNDER BY EACH PLEDGOR, OR THE
REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR PART OF THE COLLATERAL OF ANY
PLEDGOR ARE GOVERNED BY APPLICABLE MANDATORY PROVISIONS OF LAW OF A JURISDICTION
OTHER THAN THE STATE OF NEW YORK OR IN WHICH ENFORCEMENT IS SOUGHT AND (B) THE
EXERCISE BY OPIC OF ITS RIGHTS AND REMEDIES HEREUNDER WITH RESPECT TO ANY
SECURITIES (OTHER THAN SECURITIES ISSUED OR GUARANTEED BY ANY GOVERNMENTAL
AUTHORITY) SHALL BE SUBJECT TO COMPLIANCE WITH APPLICABLE MANDATORY PROVISIONS
OF LAW OF THE JURISDICTION OF DOMICILE OF THE ISSUER OF SUCH SECURITIES.

      SECTION 5.8 SEVERABILITY. If any provision of this Agreement is prohibited
or held to be invalid, illegal, or unenforceable in any jurisdiction, the
parties hereto agree, to the fullest extent permitted by law, that (a) the
validity, legality, and enforceability of the remainder of such provision in
such jurisdiction shall not be affected or impaired thereby and (b) any such
prohibition, invalidity, illegality or unenforceability shall not render any
such provision prohibited, invalid, illegal, or unenforceable in any other
jurisdiction.

      SECTION 5.9 JURISDICTION AND CONSENT TO SUIT. Without prejudice to OPIC's
right to bring suit in any appropriate domestic or foreign jurisdiction, any
action or proceeding to enforce this Agreement may be brought by OPIC in any
state or federal court of competent jurisdiction in the State of New York or the
District of Columbia of the United States of America or in any other
jurisdiction where any Pledgor or any of its assets or property may be found or
subject to jurisdiction. Each of the Pledgors hereby irrevocably waives any
present or future defense or objection to any such venue (including forum non
conveniens), and irrevocably and unconditionally consents and submits, for
itself and in respect of any of its assets or property, to the non-exclusive
jurisdiction of any such court. Final judgment against any of the Pledgors in
any action or proceeding arising out of or relating to this Agreement shall be
conclusive and may be enforced in any other jurisdiction within or outside the
United States of America by suit on the judgment, a certified or exemplified
copy of which shall be conclusive evidence of the fact and of the amount of the
obligation of such Pledgor.

      SECTION 5.10 AGENT FOR SERVICE OF PROCESS. Each of the Pledgors and the
Fund, prior to or contemporaneously with its execution and delivery of this
Agreement, shall (a) irrevocably designate and appoint an agent satisfactory to
OPIC for service of process in the State of New York and the District of
Columbia, United States of America as the authorized agent of each Pledgor and
the Fund to receive and accept on its behalf service of process in any
proceeding, (b) maintain such appointment (or that of a successor satisfactory
to OPIC) continuously in effect at all times while such Pledgor is obligated
under this Agreement or any other Financing Document and until six (6) months
after the Maturity Date, and (c) provide OPIC with evidence

                                     - 35 -
<PAGE>   40

of the prepayment in full of the fees of such agent. Service of process, writ,
judgment, or other notice of legal process upon said agent shall be deemed and
held in every respect to be effective personal service upon each Pledgor.
Nothing herein shall affect OPIC's right to serve process in any other manner
permitted by applicable law.

      SECTION 5.11 INTEGRATION. This Agreement, the Indemnity Agreement, the
Subordination Agreement, the Finance Agreement, the other Financing Documents
and all other agreements contemplated hereby or thereby embody the entire
understanding of the parties hereto, and supersede all prior negotiations,
understandings and agreements among them with respect to the subject matter
hereof.

      SECTION 5.12 ARBITRATION.

            (A) Any dispute, controversy or claim arising out of, or relating
to, or in connection with this Agreement, to which OPIC, on the one hand, any
Pledgors, on the other hand, is a party (including the breach, termination or
validity hereof), and any dispute concerning the scope of this arbitration
clause, may, at OPIC's sole option exercised by written notice to the Pledgors,
be referred for final settlement by arbitration in accordance with the Rules of
Conciliation and Arbitration of the International Chamber of Commerce (the
"ICC") in effect on the date of this Agreement (the "Rules"). The arbitration
shall be held in the Washington, D.C. metropolitan area. Upon sending out a
notice by OPIC of its election to resolve by arbitration any dispute,
controversy or claim pursuant to this Section 5.12 (the "Arbitration Notice"),
each of the Pledgors shall be obligated to settle such dispute, controversy or
claim as provided in this Section 5.12. The Pledgors and OPIC hereby agree to
the jurisdiction of the arbitral panel with respect to such dispute, controversy
or claim referred to arbitration. The arbitration shall be conducted in the
English language.

            (B) The arbitration shall be conducted by three (3) arbitrators;
provided, however, that in the event of a dispute, controversy or claim
involving both OPIC and a substantially related dispute, controversy or claim
between or among any of the Pledgors, the arbitration shall be conducted by five
(5) arbitrators. OPIC shall have the right to appoint one (1) arbitrator, in the
case of a panel of three arbitrators, or two arbitrators, in the case of a panel
of five arbitrators. The applicable Pledgors shall jointly appoint one
arbitrator, in the case of a panel of three arbitrators, or, each of TPG and
PREA, on the one hand, and BOCHC, on the other hand, shall appoint one
arbitrator for a total of two arbitrators, in the case of a panel of five
arbitrators. Each appointing party shall notify the other appointing party or
parties of the name of its appointee within sixty (60) days of the date of the
Arbitration Notice. The arbitrators so selected shall together, within sixty
(60) days after the date on which such arbitrators were required to be
appointed, appoint the third or fifth, as the case may be, presiding arbitrator.
If an arbitrator must be replaced for any reason, the party or parties that
selected such arbitrator shall appoint a substitute arbitrator within thirty
(30) days of the date upon which such replacement became necessary. If such
appointing party or parties fails to appoint any arbitrator (whether the
original or replacement arbitrator, as the case may be) within the time limits
provided hereunder, such arbitrator(s) shall, upon the written request of any
party to the arbitration that has made its

                                     - 36 -
<PAGE>   41

appointment, be appointed by the ICC. Each arbitrator shall be fluent in the
English language, shall be a disinterested person, and shall be an attorney
qualified to practice law in the Washington, D.C. metropolitan area for a
minimum of five (5) years, with experience in representing lenders and borrowers
in international financial transactions. Any party to such an arbitral
proceeding may, within ten (10) days of notice of an appointment, challenge the
appointment of an arbitrator as lacking the qualifications set forth in the
preceding sentence pursuant to the procedures prescribed by the ICC. Any
determination by the ICC as to qualifications shall be final and binding and not
subject to judicial review.

            (C) Each arbitral panel established hereunder shall make its
decisions entirely on the basis of this Agreement, the relevant Financing
Documents, as applicable, the governing law provisions herein or therein, and
the Rules. Any arbitration proceeding or award rendered hereunder and the
validity, effect and interpretation of the arbitration agreement contained in
this Section 5.12 shall be governed by the laws of the State of New York
(without reference or regard to its principles of conflict of laws) and by the
New York Convention on the Recognition and Enforcement of Foreign Arbitration
Awards, June 10, 1958.

            (D) OPIC shall communicate its statement of claim and/or defense in
writing to the other parties to the arbitration and the arbitral panel within a
period of time to be determined by the panel. Such other parties shall file a
statement of claim and/or defense within a period of time to be determined by
the panel. The parties to the arbitration may be represented or assisted by
legal counsel of their choice. The arbitral panel shall determine a date on
which it shall commence taking evidence, which date shall not be less than sixty
(60) days after the submission of such statement of claim or defense, unless the
parties to the arbitration agree otherwise. Where the Rules do not provide for a
particular situation, the arbitral panel shall by a majority, in its absolute
discretion, determine the course of action to be followed and its decision shall
be final.

            (E) The arbitral panel shall issue a written decision and award
within sixty (60) days after the conclusion of the relevant proceedings. Any
award of the arbitral panel shall be final and binding, and judgment upon any
arbitral award may be entered and enforced by any court or judicial authority of
competent jurisdiction. Any money award shall be made and shall be payable in
Dollars. The award shall be limited to the scope of the submissions and in no
circumstance shall the arbitral panel render an award ex aequo et bono or as
amiable compositeur. If any party to the arbitration wishes to submit a request
that the arbitral panel interpret the award or correct any clerical,
typographical or computation errors, or make an additional award as to claims
presented but omitted from the award, such request shall be submitted to the
arbitral panel and the other parties to the arbitration within ten (10) days
after the award. If the panel considers such request justified, after
considering the contention of the parties to the arbitration, the panel shall
promptly comply with such request.

            (F) In invoking any arbitration pursuant to this Section 5.12, OPIC
shall not be deemed to have waived any rights, immunities or privileges to which
it or any of its directors, officers or employees is entitled. By submitting to
arbitration, OPIC shall not be deemed to have

                                     - 37 -
<PAGE>   42

submitted to the jurisdiction of any court other than the United States Court of
Claims in Washington, D.C.

      SECTION 5.13 NO CONFLICT. Notwithstanding anything in this Agreement or
any other agreement between a Pledgor and the Collateral Agent, to the extent
any conflicts exist between agreements, the provisions of this Agreement shall
control.

      SECTION 5.14 CONTINUING SECURITY AGREEMENT.

            (A) No action taken or omission to act by the Collateral Agent
hereunder shall be deemed to constitute a retention of the Collateral in
payment, performance or satisfaction of any of the Secured Obligations or
otherwise to be in full payment, performance or satisfaction of any of the
Secured Obligations, and the security interest and Lien granted hereunder by
each Pledgor shall remain in full force and effect until the payment,
performance and satisfaction in full of all of the Secured Obligations of such
Pledgor or such subsequent time as is set forth in paragraph (b) below.

            (B) To the extent that any payments on the Secured Obligations of a
Pledgor or proceeds of the Collateral of such Pledgor are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee, debtor in possession, receiver or other Person under any
bankruptcy law, other law or equitable cause, then to such extent the Secured
Obligations so paid shall be revived and continue as if such payment or proceeds
had not been received by OPIC or the Collateral Agent, as applicable, and the
security interest and Lien, and all rights, powers and remedies in favor of OPIC
and the Collateral Agent, granted or conveyed hereunder by or with respect to
such Pledgor shall continue in full force and effect. In such event, this
Agreement shall be automatically reinstated if it shall theretofore have been
terminated in accordance herewith.

            (C) Each Pledgor hereby acknowledges that, whether or not there are,
at any given time, sufficient funds to meet the Secured Obligations of such
Pledgor as they fall due, nothing in this Agreement shall be deemed in any way
to lessen or absolve such Pledgor from full and timely payment, performance and
satisfaction of its Secured Obligations as they fall due.

      SECTION 5.15 SATISFACTION AND DISCHARGE. If at any time (a) the Collateral
Agent shall have received a notice from or on behalf of OPIC that the Loan and
all of the Secured Obligations of each Pledgor have been paid, performed and
satisfied in full by such Pledgor, and (b) all amounts due and payable to the
Collateral Agent by such Pledgor pursuant to this Agreement have been paid in
full, then this Agreement shall cease to be of further effect with respect to
such Pledgor, and the Collateral Agent, on written demand of and in the name and
at the cost or expense of such Pledgor and upon delivery to the Collateral Agent
of a certificate signed by an Authorized Officer of such Pledgor stating that
all conditions precedent to the satisfaction and discharge of this Agreement
with respect to such Pledgor have been complied with, the Collateral Agent shall
execute such instruments reasonably specified in such written demand
acknowledging the satisfaction and discharge of this Agreement with respect to
such Pledgor and shall transfer

                                     - 38 -
<PAGE>   43

to such Pledgor all of its Collateral at such place and in such manner as are
specified in writing by such Pledgor. OPIC agrees to give or to procure the
giving of the notices provided for in this Section 5.15 promptly after payment,
performance and satisfaction by each Pledgor of its Secured Obligations but in
any event no later than thirty (30) days after the first date following such
payment, performance and satisfaction on which OPIC has received a request from
such Pledgor to give such notice.

      SECTION 5.16 WAIVER OF JURY TRIAL. EACH OF THE PLEDGORS, THE FUND AND OPIC
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO
HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE ARISING OUT OF, IN CONNECTION
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN OR AMONG THEM
ESTABLISHED BY THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

      SECTION 5.17 WAIVER OF LITIGATION PAYMENTS. In the event that any action
or lawsuit is initiated by or on behalf of OPIC against any Pledgor, the Fund or
any other party to any Financing Document (other than OPIC), each of the
Pledgors and the Fund, to the fullest extent permissible under applicable law or
equity, hereby expressly and irrevocably waives its right to, and agrees not to
request, plead, or claim that OPIC or its successors, transfers, and assigns
(any such Person, an "OPIC Plaintiff") post, pay, or offer, any cautio judicatum
solvi bond, litigation bond, or any other bond, fee, payment, or security
measure provided for by any provision of law applicable to such action or
lawsuit (any such bond, fee, payment, or measure, a "Litigation Payment"), and
each of the Pledgors and the Fund further waives any right it may now or
hereafter have to object to an OPIC Plaintiff's claim that such OPIC Plaintiff
should be exempt or immune from posting, paying, making or offering any such
Litigation Payment.

      SECTION 5.18 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which when so executed and delivered shall be deemed an
original and all of which together shall constitute one and the same instrument,
and unless prohibited by law, the parties agree to accept facsimile counterparts
of the signature pages of this Agreement as original copies hereof.

                                   **********

                         [Signatures on following page]

                                     - 39 -
<PAGE>   44

      IN WITNESS WHEREOF, each of the parties hereto has caused this Organizer
Interest Pledge, Assignment and Security Agreement to be executed and delivered
on its behalf by its Authorized Officer as of the date first above written.

                              OVERSEAS PRIVATE INVESTMENT CORPORATION

                              By:  /s/ Austin J. Belton
                                   -----------------------------------------
                                   AUSTIN J. BELTON

                              Its: INVESTMENT FUNDS MANAGER
                                   -----------------------------------------
                                   OVERSEAS PRIVATE INVESTMENT CORP.

                              PBO PROPERTY FUND, L.L.C,
                              a Delaware limited liability company

                              By:  PBO Property Capital, L.L.C.,
                                   a Delaware limited liability company
                              Its: Managing Member

                                   By:   /s/ Stephen G. Kasnet
                                        ------------------------------------

                                   Its:  President
                                        ------------------------------------

                              PBO PROPERTY CAPITAL, L.L.C,
                              a Delaware limited liability company

                              By:  Pioneer Real Estate Advisors, Inc.,
                                   a Delaware corporation
                              Its: Managing Member

                                   By:   /s/ Stephen G. Kasnet
                                        ------------------------------------

                                   Its:  President
                                        ------------------------------------
<PAGE>   45

                              STATE STREET BANK AND TRUST COMPANY,
                              a Massachusetts trust company, as Collateral Agent

                              By:   /s/ Paul D. Allen
                                   -----------------------------------------

                              Its:  Vice President
                                   -----------------------------------------

                              BANC ONE CAPITAL HOLDINGS CORPORATION,
                              an Ohio corporation

                              By:   /s/ David R. Meuse
                                   -----------------------------------------

                              Its:  President
                                   -----------------------------------------

                              PIONEER REAL ESTATE ADVISORS, INC.,
                              a Delaware corporation

                              By:  /s/ Stephen G. Kasnet
                                   -----------------------------------------

                              Its: President
                                   -----------------------------------------

                              THE PIONEER GROUP, INC.,
                              a Delaware corporation

                              By:  /s/ Stephen G. Kasnet
                                   -----------------------------------------

                              Its: Vice President
                                   -----------------------------------------<PAGE>   1
                                                                   Exhibit 10.17

                             Dated October 20, 1999

               PIONEER POLSKI FUNDUSZ NIERUCHOMOSCI SPOLKA AKCYJNA

                                       and

                        FUNDACJA NA RZECZ NAUKI POLSKIEJ

                                       and

                                T.O.N. AGRO S.A.

                                       and

                         VIENNA LEAS INTERNATIONAL S.A.

                                       and

              PIONEER REAL ESTATE ADVISORS POLAND SP. Z O.O. & CO.
                               SPOLKA KOMANDYTOWA

                                       and

        PIONEER PIERWSZE POLSKIE TOWARZYSTWO FUNDUSZY INWESTYCYJNYCH S.A.

                                       and

                       PIONEER REAL ESTATE ADVISORS, INC.

                                       and

                              CADIM SERVOTECH B.V.

                                       and

                EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

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

                    SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT

                                  in respect of

                    PIONEER POLSKI FUNDUSZ NIERUCHOMOSCI S.A.

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

                           CAMERON MCKENNA SP. Z O.O.
                             Warsaw Financial Center
                              ul. Emilii Plater 53
                                  00-113 Warsaw
                               T +48 (22) 520 5555
                               F +48 (22) 520 5556

<PAGE>   2

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                Page 2 of 40
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THIS AGREEMENT is made the 20th day of October, 1999

BETWEEN

1.    PIONEER POLSKI FUNDUSZ NIERUCHOMOSCI S.A. a joint stock company with its
      seat in Warsaw, Poland, at Plac Trzech Krzyzy 8, represented by Ms. Alicja
      Malecka-Salomon as Vice-President of the Management Board and Mr. Amos J.
      Rogers III as a member of the Board of Management, as reflected in the
      extract from the Commercial Register maintained at the District Court of
      Warsaw XVI Commercial Registry Division under no. RHB 50 879 attached as
      Exhibit 1 to this Agreement (the "FUND");

2.    FUNDACJA NA RZECZ NAUKI POLSKIEJ (the Foundation for Polish Science) with
      its seat in Warsaw, Poland, represented by Mr. Grzegorz Krawczyk,
      Vice-President of Board of Management of the Foundation and Mr. Jacek
      Kucinski, the proxy, as reflected in the extract from the Foundations
      Register maintained at the District Court of Warsaw, XVI Commercial
      Registry Division under no. RF 1057, attached as Exhibit 2 to this
      Agreement (the "FOUNDATION");

3.    TOWARZYSTWO OBROTU NIERUCHOMOSCIAMI AGRO S.A., a joint stock company with
      its seat in Warsaw, Poland, at Sielecka 22, 00-738 Warsaw represented by
      Mr. Krzysztof Golebiowski as a member of the Board of Management and by
      Ms. Anna Wrzecionko, procurist, as reflected in the extract from the
      Commercial Register maintained at the District Court of Warsaw, XVI
      Commercial Registry Division under no. RHB 51290 ("TON AGRO");

4.    VIENNA LEAS INTERNATIONAL S.A., a joint stock company with its seat in
      Gliwice, Poland, at Zwyciestwa 30, represented by Mr. Artur Firganek the
      President of Board of Management as reflected in the extract from the
      Commercial Register maintained at the District Court of Katowice, VIII
      Commercial Registry Division under no. RHB 14736 ("VLI");

5.    PIONEER REAL ESTATE ADVISORS POLAND SP. Z O.O I SPOLKA, a limited
      partnership with its seat in Warsaw, Poland, at P1. Trzech Krzyzy 8,
      00-499 Warsaw, duly represented by Mr. Gren Carr Jones as a member of the
      Management Board of Pioneer Real Estate Advisors Poland Sp. z o.o.,
      (General Partner), as reflected in the extract from the Commercial
      Register maintained at the District Court of Warsaw, XVI Commercial
      Registry Division under no. RHA 376 (the "LIMITED PARTNERSHIP");

6.    PIONEER PIERWSZE POLSKIE TOWARZYSTWO FUNDUSZY INWESTYCYJNYCH S.A., a joint
      stock company with its seat in Warsaw, Poland, at Stawki 2, 29th floor,
      represented by Ms. Alicja Malecka-Salomon President of the Management
      Board, as reflected in the extract from the Commercial Register maintained
      at the District Court of Warsaw XVI Commercial Registry Division under no.
      RHB 31 499 attached as Exhibit 3 to this Agreement ("PIONEER INVESTMENT
      FUND");

7.    PIONEER REAL ESTATE ADVISORS, INC. with its seat in Boston, 60 State
      Street, MA 02109, the United States of America represented by Mrs.
      Malgorzata Pietrzak-Paciorek, Attorney-at-Law, the proxy ("PIONEER");

8.    CADIM SERVOTECH B.V., a limited liability company incorporated under the
      laws of the Kingdom of the Netherlands with its seat in Amsterdam, the
      Netherlands, represented by Mr. Pierre Gamache, as a member of the
      Management Board ("SERVOTECH");

9.    THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, an international
      financial institution established by an international treaty with its seat
      in London, England, represented by Ms. Jolanta Gabriel, the proxy
      ("EBRD");

      hereinafter collectively referred to as the "PARTIES", or individually as
      the "PARTY".

<PAGE>   3

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                Page 3 of 40
--------------------------------------------------------------------------------

      Extracts from the Commercial Register of Parties 3 to 5, 8,a Certificate
      of Incumbency of Party 7 and a Certificate from the Deputy Secretary
      General of Party 9 are attached hereto as Exhibit 4.

RECITALS

A.    The Fund is an investment company established as a private Polish joint
      stock company for the purpose of investing directly or indirectly in
      commercial real estate properties (and equity interests therein) in the
      Republic of Poland and managing its real estate in the Republic of Poland.

B.    Pioneer, the Foundation, EBRD, Servotech, TON Agro, VLI and the Limited
      Partnership, have agreed to subscribe for Shares in the Fund and to
      undertake certain commitments and to regulate their rights in relation to
      the Fund in the manner hereinafter described, and have agreed together
      with Pioneer Investment Fund that the subscription and shareholders'
      agreement (the "EXISTING AGREEMENT") dated the 11th day of April 1997
      between Pioneer, the Foundation (together hereinafter referred as the
      "EXISTING SUBSCRIBERS"), Handlowy Inwestycje Sp. Z O.O. ("HANDLOWY
      INWESTYCJE"), Towarzystwo Inwestycyjne DOLMEL ("DOLMEL") and Pioneer
      Pierwsze Polskie Towarzystwo Funduszy Powierniczych S.A. (currently
      Pioneer Investment Fund) should be amended and restated as follows:

NOW THE PARTIES HEREBY AGREE AS FOLLOWS:

1.    DEFINITIONS

      In this Agreement:-

      1.1.  "ACCOUNT" means the bank account of the Fund as notified to the
            Shareholders from time to time by the Board of Management of the
            Fund;

      1.2.  "AFFILIATE" means, with respect to any Person, any other Person
            directly or indirectly controlling, controlled by or under common
            control with such Person. For the purposes of this Agreement,
            "control" shall mean the ability to direct the activities of the
            controlled Person by lawful means;

      1.3.  "BUSINESS" means the business of the Fund as described in Article 6
            of the Statute;

      1.4.  "BUSINESS DAY" means a day which is not a Saturday, a Sunday or a
            public holiday in the Republic of Poland, in London (England), in
            New York (New York, the United States of America) and in Montreal
            (Canada);

      1.5.  "CLASS A SHARES" means registered ordinary Class A Shares of the
            Fund with a nominal value of one hundred zlotys (100 PLN) each;

      1.6.  "CLASS B SHARES" means registered ordinary Class B Shares of the
            Fund with a nominal value of one hundred zlotys (100 PLN) each;

      1.7.  "CLASS C SHARES" means registered ordinary Class C Shares of the
            Fund with a nominal value of one hundred zlotys (100 PLN) each;

      1.8.  "CLASS D SHARES" means registered ordinary Class D Shares of the
            Fund with a nominal value of one hundred zlotys (100 PLN) each;

      1.9.  "EXCHANGE RATE" means the average ("SREDNI") National Bank of Poland
            rate of exchange for the United States Dollar on the last Business
            Day of the month

<PAGE>   4

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                Page 4 of 40
--------------------------------------------------------------------------------

            preceding the month in which any conversion of Polish zlotys to
            United States Dollars, or vice versa, is to be calculated pursuant
            hereto, or (if the conversion is to be made or referred to in
            documents for consideration at a General Meeting of Shareholders of
            the Fund) on the last Business Day of the month preceding the month
            in which the announcement calling the Shareholders' Meeting is
            submitted for publishing;

      1.10. "FUND DOCUMENTS" shall mean the Statute of the Fund, this
            Subscription and Shareholders' Agreement, the Investment Advisory
            Agreement, the Pioneer Group Letter Agreement, Strategic Advisory
            Agreement and Umbrella Service Agreement;

      1.11. "INVESTMENT ADVISOR" means Pioneer Real Estate Advisors Poland Sp. z
            o.o., a Polish limited liability company wholly-owned by the
            Strategic Advisor;

      1.12. "PERSON" means and includes (i) an individual, (ii) a legal entity,
            organisation, partnership, registered partnership or limited
            partnership, and (iii) the State Treasury or a local authority
            ("Governmental Authority") or any department or agency thereof;

      1.13. "PORTFOLIO" means all such properties and/or companies ("PORTFOLIO
            COMPANIES") (including without limitation land and buildings and
            other facilities and improvements, agreements rights and interests
            relating thereto) as the Fund owns or shall own in the Republic of
            Poland during the term of this Agreement ("TERM") References to the
            Portfolio in this Agreement shall (where the context so requires)
            include references to individual properties comprised therein or
            held by Portfolio Companies from time to time and to part or parts
            thereof;

      1.14. "SHARES" means Class A Shares and/or Class B Shares and/or Class C
            Shares and/or Class D Shares of the Fund;

      1.15. "SHAREHOLDER" means a shareholder holding Shares and the expression
            the "SHAREHOLDERS" shall be construed accordingly;

      1.16. "STATUTE" means the Statute of the Fund in the agreed form attached
            hereto as Exhibit 5, to be adopted by resolution of the General
            Meeting of Shareholders of the Fund;

      1.17. "STRATEGIC ADVISOR" means Pioneer;

      1.18. "SUBSCRIPTION" means the subscription for Shares and the payment of
            the Subscription Price for the Subscribed Shares to the Account;

      1.19. "SUBSCRIBED SHARES" means Shares held by Shareholders from time to
            time;

      1.20. "SUBSCRIBERS" means Pioneer, the Foundation, EBRD, Servotech, TON
            Agro, VLI, the Limited Partnership and any other Persons which shall
            accede to this Agreement and subscribe for Class A Shares, Class B
            Shares, Class C Shares or Class D Shares in accordance with the
            terms of this Agreement, each individually referred to as a
            "SUBSCRIBER";

      1.21. "SUBSCRIPTION PRICE" means the price paid by each of the Subscribers
            for each Share in Polish zlotys (PLN), being the greater of (a) the
            equivalent calculated (according to the Exchange Rate) of
            twenty-eight United States Dollars and eighty-eight cents ($28.88
            US), or (b) one hundred zlotys (100 PLN);

      1.22. "ZLOTY" or "PLN" means the lawful currency of the Republic of
            Poland;

<PAGE>   5

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                Page 5 of 40
--------------------------------------------------------------------------------

      1.23. References to the "EXISTING SUBSCRIBERS" shall, where the context so
            requires, be interpreted as referring to successors in title thereof
            or permitted assignees;

      1.24. Capitalised terms not defined otherwise herein shall have the
            meaning ascribed to them in the Statute.

2.    INVESTMENT OBJECTIVES

      The Fund will seek long-term capital appreciation by investing directly
      and indirectly in equity interests in commercial real estate properties in
      the Republic of Poland. The Fund will invest in commercial real estate by
      direct ownership of interests in real property and through equity and
      quasi-equity investments in Portfolio Companies which have limited
      liability and have been established for the purpose of acquiring,
      developing, renovating, reconstructing, owning and/or managing real estate
      property in the Republic of Poland.

3.    SUBSCRIPTIONS COMMITTED UNDER THIS AGREEMENT

      Pursuant to the provisions of this Agreement and in accordance with the
      Exchange Rate as described in Clause 1.9 of this Agreement:

      3.1.  The Foundation shall subscribe for Class A Shares of consecutive
            issues of a total value equivalent to one million United States
            Dollars ($1,000,000 US);

      3.2.  TON Agro shall subscribe for Class A Shares of consecutive issues in
            the aggregate being of a total value equivalent to five hundred
            thousand United States Dollars ($ 500,000 US);

      3.3.  VLI shall subscribe for Class A Shares of consecutive issues of a
            total value equivalent to one million United States Dollars
            ($1,000,000 US);

      3.4.  The Limited Partnership shall subscribe for Class A Shares of
            consecutive issues in the aggregate being of a total value
            equivalent to three hundred thousand United States Dollars ($300,000
            US);

      3.5.  Pioneer shall subscribe for Class B Shares of consecutive issues of
            a total value equivalent to five million seven hundred thousand
            United States Dollars ($5,700,000 US);

      3.6.  Servotech shall subscribe for Class C Shares of consecutive issues
            of a total value equivalent to fifteen million United States Dollars
            ($15,000,000 US);

      3.7.  EBRD shall subscribe for Class D Shares of consecutive issues of a
            total value equivalent to ten million United States Dollars
            ($10,000,000 US);

      3.8.  To date, the following Subscribers have paid up the following
            portion of their commitment:

            3.8.1.    Pioneer - 4.13% of their total commitment (together with
                      Class B shares and 5129 Class A shares), amounting to two
                      hundred thirty five thousand six hundred and sixty United
                      States Dollars ($235,660 US);

            3.8.2.    The Foundation - 22.69% of its total commitment, amounting
                      to two hundred twenty six thousand nine hundred and
                      thirty-nine United States Dollars ($226,939 US);

4.    EBRD will have the right to cancel its obligation to subscribe and to pay
      for additional Shares in the Fund hereunder in the event that the access
      of the Republic of Poland to EBRD resources has been suspended under
      Article 8, paragraph 3 of the Agreement Establishing the European Bank for
      Reconstruction and Development. Other Shareholders shall have the right to
      cancel their obligations to subscribe and to pay for
<PAGE>   6

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                Page 6 of 40
--------------------------------------------------------------------------------

      additional Shares in the Fund hereunder in the event that EBRD exercises
      its right under this Clause proportionally to percentage of overall
      commitment cancelled by EBRD.

5.    RIGHT TO CANCEL THE SUBSCRIPTION

      5.1.  Each Shareholder subscribing for Shares under this Agreement may, by
            notice to the Fund, cancel its unperformed obligations to subscribe
            and pay for any of the Shares for which it has hereby agreed to
            subscribe and/or call for redemption of shares it already holds, if
            any of the representations or warranties made or confirmed by the
            Fund under this Agreement shall be found to have been incorrect or
            misleading as at the date of signature of this Agreement to such an
            extent that a reasonable investor would have been deterred from so
            subscribing had s/he been aware of the true and complete facts. The
            above cancellation may be exercised within seven (7) days from the
            date when the Shareholder first has written notice of such breach of
            representation or warranty, and has given written notification
            thereof to the Fund. In such case, provided that the notice in
            question is either not disputed (or is the subject of a frivolous
            dispute), or has been confirmed by arbitration under this Agreement,
            the Shareholders shall vote for any redemption of shares at their
            issue price, necessary to comply with the notice, or for liquidation
            of the Fund as proposed by such Shareholder. Where any Shareholder
            does not vote in compliance with its obligations under this clause
            5.1 and such breach results in failure of the resolution for
            redemption or liquidation (as the case may be) to pass with the
            required majority, that Shareholder (and if more than one each of
            them jointly and severally) shall be liable to the Shareholder/s
            executing the right to cancel subscription in damages for such
            breach.

      5.2.  The obligation of each Shareholder in respect of each and every new
            subscription of Class A Shares, Class B Shares, Class C Shares or
            Class D Shares shall be subject to the Fund and Pioneer confirming
            in writing that their representations and warranties set out in
            sub-clauses 8.3.1 and 8.3.5 below are true and correct.

      5.3.  Each Shareholder subscribing for Shares under this Agreement may, by
            notice to the Fund, cancel its unperformed obligations to subscribe
            and pay for any of the Shares for which it has hereby agreed to
            subscribe if it is unable to do so as a result of any change, after
            the date of this Agreement, in any law, rule or regulation of any
            federal or state authority of the jurisdiction to which such
            Shareholder is subject.

6.    SURPLUS OVER NOMINAL VALUE

      Any Part of the Subscription Price being, by virtue of the effects of
      currency conversions, a surplus over the nominal value of the relevant
      share(s) shall be booked on the reserve fund of the Fund.

7.    NEW SUBSCRIBERS

      7.1.  Within nine (9) months following the date hereof other Persons to
            which Pioneer has made or will make such a proposal may accede to
            this Agreement and become Subscribers according to the terms thereof
            ("NEW SUBSCRIBERS"). After the above period no new Persons will be
            entitled to accede to this Agreement.

      7.2.  All the Parties may, but are under no obligation to, grant to Mr.
            Amos J. Rogers III, Mr. Gren Carr Jones and Malgorzata
            Pietrzak-Paciorek, attorney at law (the "PROXIES") an irrevocable
            power of attorney, in the form in accordance with that set out in
            Exhibit 6 hereto, to sign on their behalf an accession agreement in
            form and substance in accordance with that set out in Exhibit 7 (the
            "ACCESSION

<PAGE>   7

           SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                 Page 7 of 40
--------------------------------------------------------------------------------

           AGREEMENT") hereto with each New Subscriber. Each of the Proxies
           shall be authorised to act individually.

      7.3. The accession of any New Subscriber to this Agreement becomes binding
           upon the Parties to this Agreement on the date of the execution of
           the Accession Agreement, whether directly, or pursuant to the
           aforementioned power of attorney. Notwithstanding anything to the
           contrary in the Agreement or any other agreement, the Subscribers
           will be under no obligation to execute the Accession Agreement with a
           New Subscriber or to vote in favour of the issue of Shares to a New
           Subscriber, if sufficient and reasonable evidence of the due
           financial capacity and good reputation of the potential New
           Subscribers is not provided to the Subscribers.

8.    REPRESENTATIONS

      8.1.  As of the date of this Agreement:

            8.1.1.    Pioneer holds:

                      8.1.1.1. thirty one (31) Class C Shares numbered from
                               00001 to 00031 (which will be converted into
                               Class B Shares numbered 03001 to 03031) with a
                               nominal value of one hundred zlotys (100 PLN)
                               each and with a total value of three thousand and
                               one hundred zlotys (3,100 PLN) subscribed for in
                               cash;

                      8.1.1.2. four thousand three hundred and twenty-nine
                               (4,329) Class A Shares (formerly held by Dolmel
                               numbered from 23,659 to 27,987, which will be
                               converted into Class B Shares numbered 03032 to
                               07360) with a nominal value of one hundred zlotys
                               (100 PLN) each and with a total value of four
                               hundred and thirty-two thousand, nine hundred
                               zlotys (432,900 PLN) subscribed for in cash;

                      8.1.1.3. eight hundred (800) Class A Shares (formerly held
                               by the Foundation) numbered from 22859 to 23658
                               with a nominal value of one hundred zlotys (100
                               PLN) each and with a total value of eighty
                               thousand zlotys (80,000 PLN) subscribed for in
                               cash;

            8.1.2.    Pioneer Investment Fund holds three thousand (3,000) Class
                      B Shares, numbered from 00001 to 03000, with a nominal
                      value of one hundred zlotys (100 PLN) each and with a
                      total value of three hundred thousand zlotys (300,000 PLN)
                      subscribed for in cash, which will be transferred to
                      Pioneer after execution of this Agreement and court
                      registration of the amended Statute and increase of the
                      share capital of the Fund (Pioneer Share consolidation);

            8.1.3.    The Foundation holds seven thousand eight hundreds fifty
                      eight (7,858) Class A Shares, numbered from 15001 to 22858
                      with a nominal of one hundred zlotys (100 PLN) each and
                      with a total value of seven hundred and eighty-five
                      thousand, eight hundred zlotys (785,800 PLN) subscribed
                      for in cash;

            8.1.4.    The Fund holds fifteen thousand (15,000) Class A Shares
                      (repurchased from Handlowy Inwestycje at par value)
                      numbered from 00001 to 15000, with a nominal value of one
                      hundred zlotys (100 PLN) each and with a total value of
                      one million, five hundred thousand zlotys (1,500,000 PLN),
                      which will be redeemed in accordance with Polish law and
                      the Statute, on

<PAGE>   8

           SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                 Page 8 of 40
--------------------------------------------------------------------------------

                      the day the General Meeting of Shareholders' passes the
                      resolution on the first increase of the capital of the
                      Fund in accordance with this Agreement.

      8.2.  Each of the Subscribers represents, warrants and undertakes to each
            other and the Fund that it has taken all necessary action as
            required by law and its internal regulations enabling it to validly
            undertake and perform the obligations imposed on it under the terms
            of this Agreement and that performance of the provisions of this
            Agreement will not result in a breach of or constitute a default
            under any agreement, statute, law, regulation or other contractual
            restriction binding upon it.

      8.3.  The Fund and Pioneer each represent, warrant and covenant to the
            Subscribers making an equity commitment under this Agreement that:-

            8.3.1.    EXISTENCE AND POWER. The Fund is duly established,
                      organised and existing under the laws of the Republic of
                      Poland and has unlimited power and authority under its
                      Statute and the laws of the Republic of Poland to own and
                      operate its properties, to carry on its business, to
                      invest in real estate properties and limited liability
                      companies, joint stock companies, limited partnership and
                      others owning real estate properties and to execute,
                      deliver and perform this Agreement and each of the other
                      Fund Documents to which it is or will be party.

            8.3.2.    FINANCIAL CONDITION. As of the date hereof, the Fund has
                      no contingent obligation, or indebtedness of any kind, and
                      all sums contributed to date to the equity of the Fund are
                      held on the Fund's bank account, except for the sums spent
                      to cover administrations costs and expenses of the Fund
                      incurred in the ordinary course of business. The financial
                      situation of the Fund including the calculation of the
                      administrative costs of the Fund is attached as Exhibit 8
                      to this Agreement.

            8.3.3.    HOLDINGS. As of the date hereof, the Fund does not own or
                      otherwise control any voting stock of or have any
                      ownership interest in any Person.

            8.3.4.    LIENS. The Fund does not have outstanding, nor is it
                      contractually bound to create, any Lien on or with respect
                      to any of its assets, properties, rights or revenues.

            8.3.5.    TAXES AND REPORTS. All tax returns and reports required by
                      law to be filed in the Republic of Poland or abroad, and
                      each governmental subdivision thereof, have been duly
                      filed, and all taxes assessments, fees, and other
                      governmental charges due upon the Fund, or upon any of its
                      assets or income have been paid or adequately provided for
                      on the books of the Fund, save only for any minor
                      infractions due to administrative oversights which have
                      been or will be promptly cured upon discovery thereof.

            8.3.6.    DEFAULTS. Neither the Fund nor Pioneer is in breach of any
                      provision of any contract pertaining to the Fund to which
                      either the Fund or Pioneer is a party, which breach could
                      reasonably be expected adversely to influence an
                      investor's decision to invest in the Fund.

            8.3.7.    LITIGATION. No notice of any action, suit, other legal or
                      arbitral proceeding or investigation has been served upon
                      the Fund, nor (to the best knowledge of the Fund or
                      Pioneer) is pending by or before any domestic or foreign
                      court or governmental authority or in any arbitral or

<PAGE>   9

           SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                 Page 9 of 40
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                      other forum or (to the best knowledge of the Fund and
                      Pioneer) is threatened against the Fund.

            8.3.8.    DISCLOSURE. All documents, reports and other written
                      information pertaining to the Fund and its proposed
                      operations (including, without limitation, this Agreement,
                      and the other Fund Documents) that have been furnished to
                      EBRD, Servotech and the other Subscribers making a
                      commitment under this Agreement are true and correct in
                      all material respects and do not contain any material
                      misstatement of fact or (to the best knowledge of the Fund
                      and Pioneer) omit to state a material fact necessary to
                      make the statements contained herein or therein not
                      misleading and accurate. For the avoidance of all doubt,
                      the provisions of this Clause shall not apply to, and
                      Shareholders shall not be entitled to rely upon, any
                      draft, unsigned, private placement memorandum which may
                      have been produced by the Fund, Pioneer or any of their
                      Associates from time to time.

      8.4.  The Fund and Pioneer acknowledge that the representations and
            warranties made or confirmed in this Agreement are made or confirmed
            with the intention of persuading EBRD, Servotech and the other
            Subscribers subscribing for Shares hereunder to enter into this
            Agreement and to subscribe and pay for the Shares for which they
            hereby agree to subscribe, and that EBRD, Servotech and the said
            other Subscribers have entered into this Agreement on the basis of
            and in full reliance on such representations and warranties.

9.    BUSINESS OF THE FUND

      Each of the Shareholders agrees to exercise its rights under this
      Agreement and as a Subscriber to and Shareholder of the Fund so as to
      ensure:

      9.1.  The realisation of the object of the Fund which shall be to carry on
            the Business, and;

      9.2.  That the Business shall be conducted in accordance with the
            investment guidelines ("INVESTMENT GUIDELINES") set out in Exhibit 9
            hereto, as amended or modified from time to time by the Supervisory
            Board of the Fund, good business practice and sound commercial
            principles.

10.   KEY PERSONNEL

      10.1. Mr. Stephen G. Kasnet shall be the President of the Fund's Board of
            Management, Mrs. Alicja Malecka-Salomon and Mr. Amos J. Rogers III
            shall be members of the Board of Management of the Fund. Gren Carr
            Jones shall be Managing Director of the Investment Advisor, and
            shall dedicate to the Fund the required percentage of his time
            (which shall be a minimum of eighty percent (80%). Any proposed
            changes in Key Personnel shall be notified in advance to the
            Investment Committee of the Fund, which shall approve appointments
            or replacements of Key Personnel before they become effective. Any
            such replacements shall dedicate the same amount of time to the Fund
            as required of the Key Personnel named above.

      10.2. The initial members of the Investment Committee shall be: Mr.
            Stephen G. Kasnet of Pioneer, Mr. Tim Norman of the EBRD, Mr. Pierre
            Gamache of Servotech, and a person to be jointly appointed by EBRD
            and Servotech.

11.   EXERCISE OF VOTING RIGHTS

      Each Subscriber agrees on its own behalf:

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      11.1. to exercise the voting rights available to it at the General Meeting
            of Shareholders of the Fund in relation to the Fund so as to give
            full effect to the terms and conditions of this Agreement and not to
            request a secret ballot;

      11.2. to vote on the issuance of bonds by the Fund on the terms and for
            the amounts presented by the Board of Management and approved by the
            Supervisory Board of the Fund from time to time;

      11.3. (provided such Subscriber is a Shareholder with a right to designate
            a member of the Supervisory Board):

            11.3.1.   to inform the Supervisory Board of the Fund of the
                      existence and identity (but not the commercial details) of
                      any direct investment in the Polish property sector which
                      is in the same general location and the same market sector
                      as the investment opportunities sought by the Fund and has
                      been approved by the said Shareholder or the relevant
                      corporate bodies thereof, which could create an
                      opportunity for conflicts of interest to arise, provided
                      however that the Shareholders acknowledge that TON Agro
                      and Servotech (either directly or through its Affiliates)
                      in their normal course of business are actively involved
                      in investing and selling real estates; and

            11.3.2.   (unless the other Shareholders agree otherwise), to cause
                      its designee (to the extent possible) to refrain from
                      participation in Fund decisions on projects with respect
                      to which such Shareholder has a conflict of interest.

      11.4. to vote on the dismissal of the President and members of the Board
            of Management only for "CAUSE". For the purpose of this section
            "CAUSE" shall mean:

            11.4.1.   a negligent act or a material breach, by the member of the
                      Board of Management (including the President), of the laws
                      of the Republic of Poland or of the provisions of this
                      Agreement, the Statute, the Investment Guidelines, or any
                      other legal documents regulating the conduct of members of
                      the Board of Management with respect to the operation of
                      the Fund, which is not promptly undertaken (using
                      reasonable endeavours) to be cured or is not cured within
                      45 (forty five) days of notice from the Supervisory Board
                      requiring that such breach be cured;

            11.4.2.   wilful misconduct or fraud by the member of the Board of
                      Management (including the President);

            11.4.3.   if, as at October 20, 2001, less than 1/3 (one third) of
                      the share capital of the Fund is invested pursuant to
                      Article 6(a) and/or (c) of the Statute;

            11.4.4.   if, as at October 20, 2002, less than 2/3 (two thirds) of
                      the share capital of the Fund are invested pursuant to
                      Article 6 (a) and/or (c) of the Statute.

            For the purpose of calculation of the invested Fund's capital in
            accordance with sections 11.4.3 and 11.4.4 above, funds to be
            invested by the Fund pursuant to legal, valid and binding agreements
            shall be deemed to be invested Fund's capital assuming that the
            first expense by the Fund in respect of such project shall take
            place within 12 (twelve) months from the execution of such an
            agreement.

            Notwithstanding the above none of the members of the Board of
            Management may be dismissed for reasons provided for in sections
            11.4.3 and 11.4.4 if the Fund

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            did not invest its share capital in amounts provided therein, due to
            a refusal to invest in projects presented by the Investment Advisor
            which were in compliance with the Investment Guidelines.

12.   INCREASE OF SHARE CAPITAL

      Each Subscriber agrees on its own behalf:-

      12.1. during the 36 months commencing on the date hereof (subject to an
            extension of 12 months, if so resolved by Shareholders representing
            more than three quarters (3/4) majority of the share capital of the
            Fund) ("INVESTMENT PERIOD"), at each General Meeting of Shareholders
            of the Fund called by the Board of Management of the Fund to vote in
            favour of an increase in the share capital of the Fund in an amount
            as described in the public announcement published by the Board of
            Management of the Fund and to subscribe for the number of new Shares
            as described in the public announcement published by the Board of
            Management of the Fund, as well as all Accession Agreements,
            provided that:

            12.1.1.   capitalisation of the Fund shall at no time exceed the
                      zloty equivalent of sixty million United States dollars
                      ($60,000,000 US) based on a share price of $28.88 per
                      Share (or the zloty equivalent thereof calculated by
                      reference to the Exchange Rate applicable on the date of
                      Subscription for each Share) and Servotech shall at all
                      times hold at least 25% of the share capital of the Fund;

            12.1.2.   the obligations of each Subscriber under this Clause shall
                      be capped at their respective amounts specified in Clause
                      3;

            12.1.3.   each Subscriber shall be obliged to subscribe for and
                      contribute the same percentage of its commitment as each
                      other Subscriber, provided that, due to the fact that the
                      Foundation has contributed 22.69% of its commitment set
                      out in Clause 3, it will not be obliged to subscribe for
                      new Shares in the Fund and make any contributions until
                      such time as the other Subscribers contribute to the Fund
                      22.69% of their respective commitments set out in Clause
                      3, provided that the funds contributed by the Foundation
                      are held on the bank account of the Fund or have been
                      invested;

            12.1.4.   nothing in this Agreement shall require any Subscriber who
                      has not already done so to make an initial subscription
                      ("FIRST SUBSCRIPTION") of more than five percent (5%) of
                      that Subscriber's total commitment pursuant to Clause 3 of
                      this Agreement. The First Subscription will be made by the
                      Subscribers within ten (10) Business Days from the date of
                      the resolution of the General Meeting of Shareholders on
                      the increase of the share capital of the Fund, in the
                      amount indicated in writing by the Management Board of the
                      Fund;

            12.1.5.   after the Subscribers have made their First Subscription,
                      the Fund shall not call for them to subscribe for new
                      Shares unless funds are actually required, or reasonably
                      foreseen to be required within three (3) months:

                      12.1.5.1. to fund investments duly approved by the
                                Investment Committee, or

                      12.1.5.2. to pay fees to the Investment Advisor (provided
                                always that the Fund shall not call for new
                                capital for this purpose more frequently than
                                every six months).

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            12.1.6.   The Fund will provide the Shareholders a quarterly
                      estimate of the anticipated share capital increase of the
                      Fund.

            12.1.7.   For the purposes of this Agreement, the date of payment
                      for the Shares, is the date the Subscription Price is
                      entered in the Account.

      12.2. The share capital of the Fund shall be increased, in accordance with
            Clause 12.1 above, by the issue of ordinary registered Class A
            Shares, Class B Shares, Class C Shares and Class D Shares of
            consecutive issues, which shall (subject to Clause 3.9) be covered
            by cash contributions. Subject to 12.1.3 above, the Subscribers
            shall subscribe for the Shares and shall pay for them in full within
            not longer than fourteen (14) days from the date of receipt of
            certified copy of the resolution to increase the share capital of
            the Fund (except for the First Subscription as set out in 12.1.4
            above). Notwithstanding the above, but subject to Clause 17 below,
            in case of any default on the part of any Subscriber to subscribe
            and pay for the Shares issued to it hereunder, the remaining
            Subscribers are not allowed (subject to Clause 5.3 above) to reduce
            their contribution and shall subscribe for all Shares issued to
            them;

      12.3. in the event New Subscribers accede to this Agreement pursuant to
            Clause 7 within the period specified in Clause 7.1, to waive all of
            the pre-emptive rights to which they are entitled in respect of the
            newly issued Shares to be subscribed for by the New Subscribers.
            This obligation shall expire within nine (9) months of the date
            hereof. The New Subscribers shall subscribe and pay in full a
            prorata share of their commitment equal to the portion already
            subscribed and paid up by the Subscribers within a period not longer
            than fourteen (14) days from the date of the resolution to increase
            the share capital of the Fund, pursuant to the resolution of
            Shareholders.

      12.4. When all Shareholders will have contributed twenty-five percent
            (25%) of their respective commitments to the Fund as set out in
            Clause 3 of this Agreement, each of them may vote at the next
            General Meeting of Shareholders of the Fund, called by the Board of
            Management of the Fund:

            12.4.1.   to amend Article 7 of the Statute in order to carry out
                      the split of all Shares of the Fund in such a manner that
                      each Share of a nominal value of one hundred zlotys (100
                      PLN) issued prior to that resolution will be split into
                      ten (10) new Shares of the same Class of a nominal value
                      of ten zlotys (10 PLN);

            12.4.2.   to authorize the Board of Management of the Fund within
                      three (3) months from the date of that resolution to carry
                      out the replacement of all existing Shares with such new
                      Shares and, in particular, to call upon all Shareholders
                      to deliver their Shares to the Board of Management for
                      that purpose;

            12.4.3.   to add point 5 to Article 7 of the Statute to read as
                      follows:

                      "For the purpose of this provision a dollar equivalent of
                      nominal value of Shares owned by each Shareholder shall be
                      calculated on the basis that:

                      - for Shares issued prior to [date of the resolution]
                        i.e. Class A Shares of the issue [], Class B Shares of
                        the issue [], Class C Shares of the issue [], and Class
                        D Shares of the issue [], every one hundred zlotys (100
                        PLN) of the nominal value of such Shares shall be
                        treated as equal to twenty-eight United States dollars
                        and eighty-eight cents ($28.88 US);

                      - for Shares issued after [date of the resolution] each
                        ten zlotys (10 PLN) of the nominal value of such Shares
                        shall be treated as equal to twenty-eight United States
                        dollars and eighty-eight cents ($28.88 US)."

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            The change of the structure of the share capital of the Fund shall
            not affect any other rights and duties of any of the Shareholders of
            the Fund related to this Agreement.

      12.5. In the event that TON Agro provides to the Fund in writing by
            December 31, 1999 a binding and irrevocable offer accepted by the
            Fund of the increase in its Commitment to the Fund to a total of
            five million United States Dollars ($5,000,000 US) the Shareholders
            agree:

            12.5.1.   to amend this Agreement as necessary to reflect the
                      increased Commitment of TON Agro; and

            12.5.2.   to vote to amend the Statute to provide that the right of
                      EBRD and Servotech under Article 8.9 and Article 9.2 to
                      jointly appoint a member of each of the Supervisory Board
                      and the Investment Committee shall be transferred to and
                      be exercisable by TON Agro, as long as it remains a
                      Shareholder of the Fund; such amendment shall, however,
                      provide that such right shall revert to EBRD and
                      Servotech, when TON Agro shall have ceased to be a
                      Shareholder of the Fund.

13.   CERTIFICATE OF INCUMBENCY

      The Fund shall furnish or cause to be furnished to each Subscriber
      subscribing for Shares, a certificate in the form attached hereto as
      Exhibit 10 as to the authority of the Person or Persons who will, on
      behalf of the Fund, sign the requests and certifications provided for in
      this Agreement, or take any other action or execute any other document
      required or permitted to be taken or executed by the Fund under this
      Agreement, together with authenticated specimen signatures for each such
      Person.

14.   PENALTIES

      14.1. Notwithstanding the provisions of any other Clauses of this
            Agreement, but subject to Clause 7.3, if any Party is in breach of
            its aforesaid obligations (i.e. (a) to vote for an increase in the
            share capital and/or (b) to vote for the issue of Shares to New
            Subscribers and/or (c) to waive its rights of pre-emption) and if it
            shall not have cured such breach within ten (10) Business Days from
            receiving notice thereof from the Fund, it shall be liable to pay to
            the Fund a penalty fee in the amount of one hundred and fifty
            percent (150%) of the amount which would have been paid to the Fund
            by the relevant Subscriber or Subscribers who were prevented from
            making their contributions (in case of a breach of Clauses 12.1 or
            12.2) or New Subscriber (in case of a breach of Clause 12.3) as a
            contribution to pay for the Shares to be issued to such New
            Subscriber.

      14.2. If, as a result of a breach of Clause 12.3, the New Subscriber
            exercises its right to withdraw from this Agreement, the defaulting
            Subscriber shall pay a penalty in the amount of one hundred and
            fifty percent (150%) of the total amount committed for investment by
            the New Subscriber. Provisions applicable to a penalty fee specified
            under Clause 14.1 shall apply also to the penalty fee set out
            herein, save that the penalty shall be payable to the remaining
            Subscribers in amounts proportionate to their holdings of Shares
            within thirty (30) Business Days from the date of notice of the
            relevant breach.

      14.3. The above provisions shall not preclude any Subscriber from claiming
            damages if that Subscriber's losses exceed the penalty to which s/he
            is entitled.

      14.4. The penalties specified in Clause 14.1 shall be put into the reserve
            fund of the Fund.

      14.5. Notwithstanding Clause 14.1 - 14.3, upon the request of the Fund,
            each Shareholder, obliges himself to sell its Shares, in case of its
            default in its commitment to contribute share capital, in accordance
            with Clause 3, in the

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            following way:

            14.5.1.   in case of default to subscribe for Shares prior to
                      funding 85% of commitments, the defaulting Shareholder
                      shall be obliged to sell all Shares held by him;

            14.5.2.   in case of default to subscribe for shares after funding
                      85% of commitments, the defaulting Shareholder shall be
                      obliged to sell the amount of Shares necessary to cover
                      the defaulting Shareholder's required total commitment to
                      subscribe for Shares.

      14.6. For the purposes of this Clause, the percentage of commitments
            described in Clause 14.5 above shall be calculated on basis of the
            contribution of each Shareholder, as described in Clause 3 where the
            share value shall be based on a deemed price of twenty-eight United
            States dollars and eighty-eight cents ($ 28.88 US) per Share as
            described in Clause 1.9 of this Agreement.

15.   The Subscribers may, but are under no obligation to, grant within fourteen
      (14) days from the date hereof an irrevocable independent power of
      attorney to the Proxies, in the form of Exhibit 11 to represent them at
      any General Meeting of Shareholders and to vote for the above-mentioned
      amendments to the Statute as well as the above mentioned increase(s) in
      share capital as well as for the subscription in their name of the
      registered Shares for which they agreed to subscribe in this Agreement.
      This power of attorney may be granted for a period of thirty-six (36)
      months from the date of the establishment of the Fund. The above power of
      attorney shall be used only in the event the representatives of the
      Subscribers do not attend a given General Meeting of Shareholders.

16.   The obligation of Subscribers to vote for increases in the share capital
      of the Fund and subscribe for Shares up to the amount of their total
      commitments will expire thirty-six (36) months from the date of this
      Agreement (subject to a 12-month extension, if so resolved by the
      Shareholders representing more than three quarters (3/4) majority of the
      Fund), PROVIDED ALWAYS THAT:-

      16.1. Subscribers shall meet calls to subscribe made before the end of the
            said period (as extended if appropriate) and expiring no later than
            thirty days after the end thereof, and

      16.2. nothing in this Clause shall affect the liability of Subscribers to
            honour calls to subscribe up to their said total commitments which
            were made before the expiry of the said period in order to meet
            investment commitments made by the Fund.

17.   EBRD'S AND SERVOTECH'S RIGHT TO REDUCE THEIR COMMITMENTS

      17.1. In the event of a default by any other Subscriber, each of EBRD and
            Servotech shall have the option to reduce their respective
            commitment to subscribe for the EBRD Shares and the Servotech's
            Shares to the extent necessary to cause their total subscription to
            the Fund not to exceed thirty percent (30%) of total commitments in
            the case of EBRD and forty-five percent (45%) of total commitments
            in the case of Servotech, as expressed in United States Dollars at
            the Exchange Rate.

      17.2. Prior to exercising their respective rights under this Clause, EBRD
            and/or Servotech shall:-

            17.2.1.   give notice of its/their intention to exercise the said
                      right within fourteen (14) days following the end of the
                      subscription period during which the default has occurred;
                      and

            17.2.2.   afford the Fund ninety (90) days (the "Cure Period")
                      either:

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                      17.2.2.1.  to persuade any defaulting Subscriber
                                 ("Defaulter") to honour its obligations; or

                      17.2.2.2.  to find other Subscribers or new investors
                                 willing to make good the sums which the
                                 Defaulter has failed to subscribe; or

                      17.2.2.3.  otherwise to cure the default.

      17.3. During the Cure Period, the Fund shall not invest any subscriptions
            received during the relevant subscription period.

      17.4. In the event of a default by any Subscriber, all remaining
            Shareholders including EBRD and Servotech, shall have the option to
            lend the Fund the sums which the Defaulter has failed to subscribe
            (the "Shareholder's Loan") which option may be exercised at any time
            during the first sixty days following the end of the subscription
            period during which the default has occurred by giving the Fund a
            written notice to that effect. The Shareholder's Loan shall be for a
            term of twelve (12) months and shall bear interest both before and
            after maturity at the rate of twenty percent (20%) per annum,
            calculated monthly. The principal amount of the Shareholder's Loan,
            all interest thereon as well as all the lending Shareholders'
            reasonable costs of granting the Shareholder's Loan and a one
            percent (1%) placement fee shall be repaid to the lending
            Shareholder, as soon as possible, with priority over all other sums
            payable to the Shareholders pursuant to the Fund Documents or
            otherwise. The Shareholder's Loan shall be disbursed to the Fund, in
            a single advance, in United States Dollars, not more than thirty
            (30) days following the exercise of the option, upon the execution
            by the Fund of all customary documents reasonably required by the
            lending Shareholder to evidence the Shareholder's Loan. In the event
            that more than one of the remaining Shareholders shall exercise such
            option, the amount of the Shareholder's Loan shall be advanced by
            all such Shareholders, jointly, each of them contributing in
            proportion to the number of Shares each hold over the total number
            of Shares of the Fund held by all Shareholders exercising the
            option, unless agreed otherwise by such Shareholders.

      17.5. If by the end of the Cure Period where applicable, or by the end of
            the delay mentioned in Clause 17.4 hereof in other cases, the
            defaulting Subscriber shall not have complied in full with the
            relevant obligation or the Fund shall not have received the proceeds
            of any Shareholder's Loan, the Fund shall repay all Shareholders'
            subscription, including EBRD's and Servotech's subscription, to the
            extent necessary to comply with sub-clause 17.1 above, or if the
            funds remaining are insufficient to allow the Fund to complete whole
            or part of the investment contemplated when the cash call was
            effected, the Fund shall repay all Shareholders' that subscription
            in full.

      17.6. In case EBRD and/or Servotech has exercised their rights specified
            in this Clause, the remaining Shareholders shall have the right to
            reduce their commitments to subscribe for shares proportionally.

18.   The Fund intends to apply for the listing of its Shares in a developed
      trading market (approved by the General Meeting of Shareholders) as soon
      as possible, within six (6) years of the date of this Agreement. Prior to
      the fifth (5th) anniversary of the date of this Agreement, the Board of
      Management of the Fund will submit an action plan for the listing of the
      Fund to the Supervisory Board for consideration.

19.   DISTRIBUTION OF PROFITS

      19.1. During its first three years of operations (subject to an extension
            upon a resolution of the General Meeting of Shareholders adopted by
            more than three quarters (3/4) majority of the votes cast), the Fund
            will pay dividends as and when

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            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT               Page 16 of 40
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            recommended by the Supervisory Board and approved by the General
            Meeting of Shareholders pursuant to the Statute. Thereafter, the
            Fund will make a distribution to Shareholders at least annually to
            the extent there is an after tax profit available for distribution,
            as provided by Polish law. Dividends will be paid in zlotys. The
            Fund expects to retain substantially all of its earnings until the
            third anniversary or, if extended, until the fourth anniversary of
            the date of this Agreement.

      19.2. Distributions of income accrued to the Fund from the temporary
            investment of cash reserves, net of management and administrative
            fee, expenses and taxes payable by the Fund will be made to all
            Shareholders at least annually in proportion to their Share
            ownership.

      19.3. Likewise, upon termination and liquidation of the Fund, liquidating
            distributions of cash and securities, after liquidation proceedings
            will be made to all Shareholders in proportion to their respective
            Share ownership.

20.   TRANSFER OF INTEREST

      The rights of Shareholders to transfer their Shares are governed by the
      Statute. The Shareholders shall procure that any purchaser of their Shares
      shall become a party to this Agreement and shall become a Subscriber in
      the meaning of this Agreement, and shall assume all rights and obligations
      resulting from the sale of such Shares except for EBRD's right under
      Clause 4 and 17.1 above.

21.   INVESTMENT ADVISORY AGREEMENT

      21.1. The Subscribers agree that the Fund shall enter into an Investment
            Advisory Agreement and an Umbrella Services Agreement in the forms
            attached hereto as Exhibits 12 and 13 respectively, which shall
            supersede any and all previous agreements by the Fund with the
            Investment Advisor.

      21.2. The Strategic Advisor will enter into a Strategic Advisory Agreement
            with the Investment Advisor (and not the Fund) in the form attached
            hereto as Exhibit 14, and under such agreement will provide services
            to the Investment Advisor and receive fees for such services from
            the Investment Advisor and not from the Fund.

      21.3. Pioneer acknowledges that Servotech and EBRD may receive in the
            future from the Investment Advisor consideration in return for their
            significant investment in the Fund and consequential increased
            marketability of the Fund.

22.   CO-INVESTMENT

      Each Shareholder shall have the right to enter into an agreement with the
      Fund to provide for:-

      22.1. co-investment by that Shareholder with the Fund on equal terms and
            conditions to be agreed between the relevant Shareholder and the
            Fund provided that no advisory fees or incentive fees shall be
            payable by the co-investing Shareholder, and/or

      22.2. debt financing to be advanced by that Shareholder to the Fund and to
            be secured by a mortgage or mortgages on the real estate assets of
            the Fund on terms and conditions to be agreed between the relevant
            Shareholder and the Fund.

23.   TERMS OF SHARE SALE

      23.1. Subject to the provisions of the Statute, every sale, transfer or
            other kind of alienation of the Shares in the Fund to any third
            person may take place only upon the condition that the purchaser
            shall accede to this Agreement, under which it will undertake to
            comply with all provisions of this Agreement.

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      23.2. In the event the Shares of the Fund are transferred in breach of the
            preceding sub-clause, the transferor shall remain liable for the
            performance by each possessor of transferred Shares of obligations
            which he would have been obliged to perform if he acceded to this
            Agreement. The transferor shall be liable for damages incurred by
            the Parties to this Agreement arising from the non-performance of
            the above obligation by each of the possessors of Shares, in the
            event the Shares of the Fund are transferred in such breach.

24.   CONFLICTS OF INTEREST

      The Fund will not invest in any property owned (in whole or in part) by
      Pioneer, the Investment Advisor or any Affiliate thereof, or in any
      Company whose Shares are held by, or which has borrowed funds from,
      Pioneer, the Investment Advisor, or any Affiliate of either thereof,
      including any investment funds managed, advised or sponsored by Pioneer or
      its Affiliates, without a prior resolution of the Supervisory Board
      pursuant to Articles 8.10 (r) and 8.12 (b) of the Statute. In the event
      that the Fund invests in a property or Portfolio Company advised by
      Pioneer or the Investment Advisor or any of their Affiliates, the terms of
      such advisory work shall be fully disclosed to the Supervisory Board prior
      to the Fund making a decision on such investment.

25.   NON-DISCLOSURE OF INFORMATION

      25.1. Each Party undertakes to each of the other Parties that it shall use
            all reasonable endeavours, except with the consent of the relevant
            Party or as may be required by law, by any court of competent
            jurisdiction, or by any regulatory authority or by any regulations
            binding upon it, to ensure that all information received by it in
            writing relating to the other Parties which is not in the public
            domain and which is marked "confidential" on the cover, shall be
            treated as confidential and shall not be disclosed to any third
            party, except with a proposed sale of its Shares, PROVIDED ALWAYS
            that all written information provided by Parties to each other prior
            to the date of this Agreement shall be deemed to have been marked
            "confidential".

      25.2. This restriction shall continue to apply after the expiration or
            termination of this Agreement with limit to [two] (2) years after
            liquidation of the Fund but shall cease to apply to information or
            knowledge which may properly come into the public domain through no
            fault of the Party so restricted.

      25.3. A Party shall not be in breach of the provisions of this Agreement
            by virtue of any member of the Board of Management, Supervisory
            Board, or Investment Committee of the Fund appointed by a Party
            passing to that Party any information s/he receives in that capacity
            or in any similar capacity in relation to any subsidiary of the
            Fund, but nothing contained in this Agreement shall require such
            disclosure which would result in the breach of a fiduciary duty to
            the Fund or any such subsidiary.

      25.4. Notwithstanding the foregoing, nothing herein shall prevent EBRD and
            Servotech from disclosing information relating to its investment in
            the Fund as required by policies and procedures issued by its
            governing bodies.

26.   DURATION

      This Agreement shall continue in full force and effect until any of the
      following events occurs:-

      26.1. the express written agreement of all the Shareholders of the Fund to
            terminate this Agreement; or

      26.2. the liquidation and/or winding up of the Fund and/or the date on
            which the judgement providing for the de-registration of the Fund
            becomes final and

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            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT               Page 18 of 40
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            unappealable through ordinary means of appeal; or

      26.3. in respect to each Shareholder, the sale of all Shares held by such
            Shareholder; in accordance with the provisions of this Agreement; or

      26.4. the Shares of the Fund become listed securities.

      Following any such termination, the provisions of Clause 25 shall
      nevertheless remain in full force and effect.

27.   COSTS, FEES AND EXPENSES

      27.1. All organisational expenses and legal costs incurred in connection
            with the establishment of the Fund, in accordance with this
            Agreement and its Exhibits, will be borne by the Fund in an amount
            not to exceed one percent (1%) of the Fund's total capital
            commitments. All organisational expenses and legal costs in excess
            of this amount will be borne by the Strategic Advisor.

      27.2. The budget for Fund expenses will be subject to the approval of the
            Supervisory Board.

28.   INDEMNIFICATION

      The Fund will indemnify, out of the assets of the Fund only, the
      Investment Advisor, the Board of Management and their respective officers,
      directors and employees, and each member of the Investment Committee and
      the Supervisory Board for any claims, damages and liabilities to which
      they may become subject because of their status as Investment Advisor of
      the Fund or member of the Board of Management, Investment Committee or
      Supervisory Board of the Fund, or as an officer, director or employee
      thereof, or by reason of any action taken or omitted to be taken by them
      in connection with the Fund, except to the extent caused by their gross
      negligence or wilful misconduct.

29.   ASSIGNMENT

      29.1. During the term of this Agreement, no Shareholder shall (or shall
            purport) to assign, transfer, or otherwise dispose of any of its
            Shares unless it shall first have procured that its assignee,
            transferee or other recipient (the "NEW SHAREHOLDER") shall have
            acceded to this Agreement as hereinbefore provided.

      29.2. Nothing in this clause shall authorise any transfer of Shares which
            would not be made in accordance with the Statute of the Fund.

30.   SUCCESSORS

      This Agreement shall be binding on and shall inure for the benefit of the
      respective successors in title of each Party.

31.   NO PARTNERSHIP

      Nothing in this Agreement shall be deemed to constitute a partnership
      between the parties nor constitute any party the agent of any other party
      for any purpose.

32.   FURTHER ASSURANCE AND GOOD FAITH

      32.1. Each Party shall co-operate with the other Parties to prepare and
            deliver documents and take such other actions as may be reasonably
            requested in order to implement this Agreement.

      32.2. The Parties shall at all times act diligently towards each other in
            fulfilment of their obligations hereunder and in relation to the
            Fund and this Agreement.

<PAGE>   19

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT               Page 19 of 40
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33.   ARBITRATION

      33.1. Any claims or disputes between the Parties, involving at least one
            non Polish Party, arising out of or relating to this Agreement,
            which cannot be resolved in an amicable fashion shall be settled by
            an arbitration court sitting in London, England (the "LONDON
            ARBITRATION COURT"). The arbitration proceeding shall be conducted
            in accordance with the Rules of Arbitration of the United Nations
            Commission on International Trade Law (the "UNCITRAL ARBITRATION
            RULES") in force at the time of submittal of the dispute to
            arbitration. The proceedings shall be conducted in the English
            language. There shall be one arbitrator appointed jointly by such of
            the Parties as are in dispute. The President of the London Court of
            International Arbitration shall act as the appointing authority
            under the UNCITRAL Arbitration Rules if the Parties in dispute fail
            to appoint the arbitrator jointly within the limits specified in the
            UNCITRAL Arbitration Rules.

            Nothing in this Agreement shall be construed as a waiver,
            renunciation or other modification of any immunities, privileges or
            exemptions of EBRD accorded under the Agreement Establishing the
            Bank, international conventions or any applicable law.

      33.2. All claims or disputes between the Polish Parties will be settled by
            the Arbitration Court at the National Chamber of Commerce in Warsaw
            (the "WARSAW ARBITRATION COURT") in accordance with the arbitration
            rules of such court prevailing at the time. The award of the
            arbitration court shall be final and binding.

      33.3. Nothing in this Agreement shall be construed as an attempt to
            exclude the jurisdiction of the Polish courts in matters as to
            which, by virtue of Polish law, they have exclusive jurisdiction.

      33.4. In making its decisions on a matter in dispute, the Warsaw
            Arbitration Court shall have no regard to any findings of the London
            Arbitration Court in previous similar disputes which may have arisen
            between other Parties, and vice versa.

34.   MISCELLANEOUS

      34.1. This Agreement, subject to Clause 12.1.4, is conditional upon
            registration within forty five (45) Business Days from the receipt
            of the capital cash contributions from the Shareholders by the
            District Court-Commercial Court in Warsaw (the "COURT") the
            resolutions the General Meeting of Shareholders of the Fund
            authorising:-

            34.1.1.   the necessary increase in the share capital of the Fund to
                      comply with the Subscribers obligations under this
                      Agreement to subscribe for their first tranche of Shares;
                      and

            34.1.2.   the amendment of the existing statute of the Fund so as to
                      be in the new form of the Statute.

      34.2. If the pre-condition in the foregoing sub-clause shall not be
            satisfied, this Agreement shall not come to force, and the
            relationships between the Existing Subscribers shall continue to be
            governed by the Existing Agreement. The Subscribers shall be
            released from their obligations to make commitments and the capital
            paid to the Fund on the basis of this Agreement shall be returned.
            If such pre-condition is satisfied, then, as of the date of
            registration by the Court of the above resolutions, this Agreement
            supersedes any and all prior agreements between the parties, which
            said agreements are hereby terminated and of no further force and
            effect. In particular, subject as aforesaid, from the date thereof,
            the

<PAGE>   20

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT               Page 20 of 40
--------------------------------------------------------------------------------

            Existing Agreement shall expire and shall have no further force and
            effect, and the relationships between the Subscribers shall be
            governed by this Agreement.

      34.3. This Agreement shall be governed by and construed in accordance with
            Polish law.

      34.4. This Agreement was executed in two languages, Polish and English, in
            9 originals one of each for each of the Parties. In case of a
            disputes involving an entity with its seat outside of the Republic
            of Poland, the English version shall prevail in case of any
            discrepancy between versions in different languages, but otherwise
            the Polish version shall be binding.

      34.5. Any amendment to this Agreement shall be in writing to be valid.

      34.6. Nothing in this Agreement shall be construed as adversely affecting
            the special rights conferred by the Statute upon the holders of any
            Class of Shares, including special voting and rights to appoint
            representatives to the Supervisory Board, the Board of Management or
            the Investment Committee of the Fund. Nor shall anything in this
            Agreement be construed as adversely affecting the rights of such
            appointees.

      34.7. Unless provided otherwise all notices and other communications given
            or made pursuant hereto shall be in writing and shall be deemed to
            have been given or made if in writing and delivered personally, sent
            by registered mail or sent by telefax:-

            IF TO THE FUND:

            Pioneer Polski Fundusz Nieruchomosci S.A.
            Plac Trzech Krzyzy 8
            00-499 Warsaw, Poland
            Att.:     Mr. Gren Carr Jones
                      Mr. Piotr Niedzielski
            Telephone:   +48 (22) 627 2750
            Telefax:     +48 (22) 627 2760

            cc:
            Cameron McKenna Sp. z o.o.
            Warsaw Financial Center
            53 Emilii Plater St.
            00-113 Warsaw, Poland
            Att.:     Mr. Steven Shone
                      Ms. Malgorzata Pietrzak-Paciorek
            Telephone:   + 48 (22) 520 5555
            Telefax:     + 48 (22) 520 5556

            cc:
            Pioneer Real Estate Advisors, Inc.
            60 State Street
            Boston, MA 02-139
            USA
            Att.:     Mr. Stephen G. Kasnet
                      Mr. Amos J. Rogers III
            Telephone:   + 1 (617) 742 7825
            Telefax:     + 1 (617) 422 4286

<PAGE>   21

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT               Page 21 of 40
--------------------------------------------------------------------------------

            IF TO THE FOUNDATION:

            Fundacja Na Rzecz Nauki Polskiej
            11 Grazyny St.
            02-548 Warsaw, Poland
            Att.:     Mr. Maciej W. Grabski
                      Mr. Jacek Kucinski
            Telephone:   + 48 (22) 845 4055
            Telefax:     + 48 (22) 845 4054

            IF TO TON AGRO:

            Towarzystwo Obrotu Nieruchomosciami AGRO S.A.
            22 Sielecka St.
            00-738 Warsaw, Poland
            Att.:     Mr. Jan Wojciech Podobas
                      the President of the Board of Management
            Tel.:        + 48 (22) 699 4123
            Fax:         + 48 (22) 699 4122

            IF TO VLI:

            Vienna Leas International S.A.
            81 Strazacka St.
            43-382 Bielsko Biala, Poland
            Att.:     Mr. Artur Firganek
                      the President of the Board of Management
            Telephone:   + 48 (33) 183 667
            Telefax:     + 48 (22) 183 976

            IF TO THE LIMITED PARTNERSHIP:

            Pioneer Real Estate Advisors Poland Sp. z o.o. i Spolka,
            Spolka Komandytowa.
            PL Trzech Krzyzy 8
            00-499 Warsaw, Poland
            Att.:     Mr. Gren Carr Jones
                      Member of the Board of Management
            Tel.:        + 48 (22) 627 2750
            Tel./fax:    + 48 (22) 256 4760

            IF TO PIONEER INVESTMENT FUND:

            Pioneer Pierwsze Polskie Towarzystwo Funduszy Inwestycyjnych S.A.
            2 Stawki St., 29 floor
            00-193 Warsaw, Poland
            Att.:     Ms. Alicja Malecka-Salomon
                      President of the Management Board

<PAGE>   22

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT               Page 22 of 40
--------------------------------------------------------------------------------

            Tel.:        + 48 (22) 635 6202
            Fax:         + 48 (22) 635 8145

            IF TO PIONEER:

            Pioneer Real Estate Advisors, Inc.
            60 State Street
            Boston, MA 02-139
            USA
            Att.:     Mr. Stephen G. Kasnet
                      Mr. Amos J. Rogers III
            Telephone:   + 1 (617) 742 7825
            Telefax:     + 1 (617) 422 4286

            cc:
            Cameron McKenna Sp. z o.o.
            Warsaw Financial Center
            53 Emilii Plater St.
            00-113 Warsaw, Poland
            Att.:     Mr. Steven Shone
                      Ms. Malgorzata Pietrzak-Paciorek
            Telephone:   + 48 (22) 520 5555
            Telefax:     + 48 (22) 520 5556

            IF TO SERVOTECH:

            CADIM Servotech B.V.
            800, Square Victoria, Suite 4400
            P.O.B. 118
            Montreal, Quebec, Canada H4Z 1B7
            Att.:    V.P. Legal
            Tel.:    (514) 875-3319
            Fax:     (514) 875-3328

            cc:
            CADIM Servotech B.V.
            Herengracht 483
            1017 BT Amsterdam
            The Netherlands
            Att.:    Mr. J. Bradley Unsworth
            TeL:     31 20 622 3243
            Fax:     31 20 623 2285

            cc:
            Lafleur Brown
            1 Place Ville Marie, 37 floor
            H3B 3P4 Montreal, Quebec, Canada
            Tel.:    (514) 878 9641
            Fax:     (514) 878 1450

<PAGE>   23

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                     Page 23
--------------------------------------------------------------------------------

            00-023 Warsaw, Poland
            Tel.:    + 48 22 690 69 01
            Fax:     + 48 22 690 69 31

            IF TO EBRD:

            European Bank for Reconstruction and Development
            1 Exchange Square
            London EC2A 2JN
            Tel:     + 44 207 338 6000
            Fax:     + 44 207 338 6100
            Telex:   8812161 Answerback EBRD LG

            Att.:     Operation Administration Unit

THIS AGREEMENT SHALL BE CONCLUDED ON THE DATE ON WHICH THE LAST PARTY INDICATED
IN THE PREAMBLE TO THIS AGREEMENT SIGNS IT.

SIGNED

IN THE NAME AND ON BEHALF OF THE FUND

/s/ Alicja Malecka-Salomon
----------------------------------------
Ms. Alicja Malecka-Salomon, Vice-President of the Board of Management

/s/ Amos J. Rogers III
----------------------------------------
Mr. Amos J. Rogers III, a member of the Board of Management

IN THE NAME AND ON BEHALF OF THE FOUNDATION

/s/ Grzegorz Krawczyk
----------------------------------------
Mr. Grzegorz Krawczyk, Vice-President of the Board of Management

/s/ Jacek Kucinski
----------------------------------------
Mr. Jacek Kucinski, the proxy

IN THE NAME AND ON BEHALF OF TON AGRO

/s/ Krzysztof Golebiowski
----------------------------------------
Mr. Krzysztof Golebiowski, a member of the Board of Management

/s/ Anna Wrzecionko
----------------------------------------
Ms. Anna Wrzecionko, procurist

<PAGE>   24

            SUBSCRIPTION AND SHAREHOLDERS' AGREEMENT                     Page 24
--------------------------------------------------------------------------------

IN THE NAME AND ON BEHALF OF VLI

/s/ Artur Firganek
----------------------------------------
Mr. Artur Firganek, the President of the Board of Management

IN THE NAME AND ON BEHALF OF THE LIMITED PARTNERSHIP

/s/ Gren Carr Jones
----------------------------------------
Mr. Gren Carr Jones, a member of the Board of Management of Pioneer Real Estate
Advisors Poland Sp. z o.o. (General Partner)

IN THE NAME AND ON BEHALF OF PIONEER INVESTMENT FUND

/s/ Alicja Malecka-Salomon
----------------------------------------
Ms. Alicja Malecka-Salomon, the President of the Board of Management

IN THE NAME AND ON BEHALF OF PIONEER

/s/ Malgorzata Pietrzak-Paciorek
----------------------------------------
Mrs. Malgorzata Pietrzak-Paciorek, the proxy

IN THE NAME AND ON BEHALF OF SERVOTECH

/s/ Pierre Gamache
----------------------------------------
Mr. Pierre Gamache, member of the Board of Management

IN THE NAME AND ON BEHALF OF EBRD

/s/ Jolanta Gabriel           27/10/99
----------------------------------------
Ms. Jolanta Gabriel, the proxy

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