Document:

WG Assumed Loan Pool 2 - Exhibit 10.7

Exhibit 10.7

LOAN AGREEMENT FIXED RATE BETWEEN
PENN 1031 LLC, A MICHIGAN  LIMITED  LIABILITY COMPANY AS BORROWER

AND
CAPMARK BANK, A UTAH INDUSTRIAL BANK AS LENDER

DATED AS OF MARCH 29, 2007

Loan Number: 56534

	
			
	Table of Contents

	 
	 
	Page

	 
	 
	 

	ARTICLE 1 DEFINED TERMS AND CONSTRUCTION GUIDELINES
	1

	1.01
	 Defined Terms 
	1

	1.02
	 General Construction 
	1

	1.03
	 Intentionally 01nitted 
	1

	1.04
	 Property 
	1

	ARTICLE 2 MAXIMUM LOAN AMOUNT; PAYMENT TERMS; ADVANCES;
	 

	 
	DEFEASANCE 
	2

	2.01
	 Commitment to Lend 
	2

	2.02
	 Calculation of Interest
	2

	2.03
	 Payment of Principal and Interest
	3

	2.04
	 Payments Generally 
	4

	2.05
	 Prepayment Rights 
	6

	ARTICLE 3 CASH MANAGEMENT 
	12

	3.01
	 Intentionally Omitted 
	12

	ARTICLE 4 ESCROW AND RESERVE REQUIREMENTS 
	12

	4.01
	 Creation and Maintenance of Escrows and Reserves 
	12

	4.02
	 Tax Escrow 
	14

	4.03
	 Insurance Pre1niu1n Escrow 
	15

	4.04
	 Immediate Repair Escrow Account 
	16

	4.05
	 Replacement Reserve Account 
	17

	4.06
	 TI/LC Reserve Account 
	17

	ARTICLE 5 COMPLETION OF REPAIRS RELATED TO RESERVE
	 

	 
	ACCOUNTS; CONDITIONS TO RELEASE OF FUNDS 
	19

	5.01
	 Conditions Precedent to Disbursements from Certain Reserve Accounts 
	19

	5.02
	 Waiver of Conditions to Disbursement
	21

	5.03
	 Direct Payments to Suppliers and Contractors 
	21

	5.04
	 Performance of Reserve Items 
	21

	ARTICLE 6 LOAN SECURITY AND RELATED OBLIGATIONS 
	23

	6.01
	 Security Instrument and Assignment of Rents and Leases 
	23

	6.02
	 Assignment of Property Management Contract
	23

	6.03
	 Assignment of Operating Agreements 
	23

i

	
			
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	(continued)

	 
	 
	Page

	6.04
	 Pledge of Property; Grant of Security Interest
	23

	6.05
	 Environmental Indemnity Agreement
	23

	6.06
	 Guaranty of Borrower Sponsors 
	23

	ARTICLE 7 SINGLE PURPOSE ENTITY REQUIREMENTS 
	24

	7.01
	 Commitment to be a Single Purpose Entity 
	24

	7.02
	 Definition of Single Purpose Entity 
	24

	7.03
	 Lender's Acknowledgement 
	27

	7.04
	 Acknowledgment; Conflicts 
	28

	ARTICLE 8 REPRESENTATIONS AND WARRANTIES 
	28

	8.01
	 Organization; Legal Status 
	28

	8.02
	 Power; Authorization; Enforceable Obligations 
	28

	8.03
	 No Legal Conflicts 
	28

	8.04
	 No Litigation 
	29

	8.05
	 Business Purpose of Loan 
	29

	8.06
	 Warranty of Title 
	29

	8.07
	 Condition of the Property 
	29

	8.08
	 No Conde1nnation 
	30

	8.09
	 Requirements of Law 
	30

	8.10
	 Operating Permits 
	30

	8.11
	 Separate Tax Lot 
	30

	8.12
	 Flood Zone 
	30

	8.13
	 Adequate Utilities 
	30

	8.14
	 Public Access 
	30

	8.15
	 Boundaries 
	30

	8.16
	 Mechanic Liens 
	31

	8.17
	 Assessments 
	31

	8.18
	 Insurance 
	31

	8.19
	 Leases 
	31

	8.20
	 Management Agreement 
	32

	8.21
	 Financial Condition 
	32

ii

	
			
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	(continued)

	 
	 
	Page

	8.22
	 Taxes 
	32

	8.23
	 No Foreign Person 
	32

	8.24
	 Federal Regulations 
	32

	8.25
	 Investment Company Act; Other Regulations 
	32

	8.26
	 ERISA 
	32

	8.27
	 No Illegal Activity as Source of Funds 
	33

	8.28
	 Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
	 

	 
	Laundering Laws 
	33

	8.29
	 Brokers and Financial Advisors 
	33

	8.30
	 Complete Disclosure; No Change in Facts or Circumstances 
	33

	8.31
	 Survival 
	33

	ARTICLE 9 BORROWER COVENANTS 
	33

	9.01
	 Payment of Debt and Performance of Obligations 
	33

	9.02
	 Payment of Taxes and Other Lienable Charges 
	33

	9.03
	 Insurance 
	34

	9.04
	 Obligations upon Condemnation or Casualty 
	39

	9.05
	 Inspections and Right of Entry 
	44

	9.06
	 Leases and Rents 
	44

	9.07
	 Use of Property 
	45

	9.08
	 Maintenance of Property 
	46

	9.09
	 Waste 
	46

	9.10
	 Co1npliance with Laws 
	46

	9.11
	 Financial Reports, Books and Records 
	47

	9.12
	 Performance of Other Agreements 
	48

	9.13
	 Existence; Change of Name; Location as a Registered Organization 
	49

	9.14
	 Property Management 
	49

	9.15
	 ERISA 
	50

	9.16
	 Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
	 

	 
	Laundering Laws 
	50

	ARTICLE 10 NO TRANSFERS OR ENCUMBRANCES; DUE ON SALE 
	50

	10.01
	 Prohibition Against Transfers 
	50

iii

	
			
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	(continued)

	 
	 
	Page

	10.02
	 Lender Approval 
	50

	10.03
	 Borrower Right to Partial Defeasance and Release for Allocated
	 

	 
	Maximum Loan Amount
	51

	10.04
	 Other Releases of the Mortgaged Property 
	53

	10.05
	 OFAC Compliance; Substantive Consolidation Opinion 
	53

	ARTICLE 11 EVENTS OF DEFAULT; REMEDIES 
	53

	11.01
	 Events of Default 
	53

	11.02
	 Remedies 
	56

	11.03
	 Cumulative Remedies; No Waiver; Other Security 
	58

	11.04
	 Enforcement Costs 
	58

	11.05
	 Application of Proceeds 
	58

	11.06
	 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets 
	58

	ARTICLE 12 NONRECOURSE- LIMITATIONS ON PERSONAL LIABILITY 
	59

	12.01
	 Nonrecourse Obligation 
	59

	12.02
	 Full Personal Liability 
	59

	12.03
	 Personal Liability for Certain Losses 
	60

	12.04
	 No Impairment 
	61

	12.05
	 No Waiver of Certain Rights 
	61

	ARTICLE 13 INDEMNIFICATION 
	61

	13.01
	 Indemnification Against Claims 
	61

	13.02
	 Duty to Defend 
	62

	ARTICLE 14 SUBROGATION; NO USURY VIOLATIONS 
	62

	14.01
	 Subrogation 
	62

	14.02
	 No Usury 
	63

	ARTICLE 15 SALE OR SECURITIZATION OF LOAN 
	63

	15.01
	 Splitting the Note 
	63

	15.02
	 Lender's Rights to Sell or Securitize 
	64

	15.03
	 Dissemination of Information 
	65

	15.04
	 Reserves Accounts 
	65

	15.05
	 Securitization Indemnification 
	65

iv

	
			
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	(continued)

	 
	 
	Page

	15.06
	 Additional Financial Information for Large Loans 
	67

	ARTICLE 16 BORROW FURTHER ACTS AND ASSURANCES PAYMENT OF
	 

	 
	SECURITY RECORDING CHARGES 
	67

	16.01
	 Further Acts 
	67

	16.02
	 Replacement Documents 
	68

	16.03
	 Borrower Estoppel Certificates 
	68

	16.04
	 Recording Costs 
	69

	16.05
	 Publicity 
	69

	ARTICLE 17 LENDER CONSENT 
	69

	17.01
	 No Joint Venture; No Third Party Beneficiaries 
	69

	17.02
	 Lender Approval 
	69

	17.03
	 -Performance at Borrower's Expense 
	70

	17.04
	 Non-Reliance 
	70

	ARTICLE 18 MISCELLANEOUS PROVISIONS 
	70

	18.01
	 Notices 
	70

	18.02
	 Entire Agreement; Modifications; Time of Essence 
	71

	18.03
	 Binding Effect; Joint and Several Obligations 
	72

	18.04
	 Duplicate Originals; Counterparts 
	72

	18.05
	 Unenforceable Provisions 
	72

	18.06
	 Governing Law 
	72

	18.07
	 Consent to Jurisdiction 
	72

	18.08
	 WAIVER OF TRIAL BY JURY 
	72

	ARTICLE 19 LIST OF DEFINED TERMS 
	72

	19.01
	 Definitions 
	72

v

LOAN AGREEMENT (FIXED RATE LOAN)

THIS LOAN AGREEMENT  is made as of this 29th day of March, 2007 by PENN  1031
LLC, a Michigan limited liability company ("Borrower"), as borrower, and CAPMARK BANK, a Utah industrial bank (together with its successors and assigns "Lender"), as lender.

Background

Borrower  desires  to  obtain  a  commercial  mortgage  loan  from  Lender  in  the  original principal amount of Eight Million Nine Hundred Thousand and 00/100 Dollars ($8,900,000.00) in  lawful  money  of  the  United  States ·of  America.    Lender  is willing  to make  such  loan  to
·   Borrower on the tenns and conditions set forth in this Loan Agreement.

Agreement

NOW, THEREFORE, in consideration of such loan and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, Borrower and Lender agree as follows:

ARTICLE 1
DEFINED TERMS AND CONSTRUCTION GUIDELINES

1.01.    Defined Terms.  Each defined term used in this Loan Agreement has the meaning given to that term in Article  19 of this Loan Agreement  unless otherwise  stated in any  other provision hereof.

1.02.   General Construction. Defined terms used in this Loan Agreement may be used interchangeably in singular or plural form, and pronouns are to be construed to cover all genders. All references  to this Loan Agreement  or any agreement or instrument referred to in this Loan Agreement  shall  mean  such  agreement  or instrument  as originally  executed  and as hereafter amended,  supplemented,   extended,  consolidated  or  restated  from  time  to  time.    The  words "herein," "hereof'  and  "hereunder"   and  other  words  of  similar  import  refer  to  this  Loan Agreement  as  a  whole  and  not  to  any  particular  subdivision;  and  the  words  "Article"  and "section" refer to the entire article or section, as applicable and not to any particular subsection or other subdivision.   Reference to days for performance  means calendar days unless business days are expressly indicated.

1.03.     Intentionally Omitted.

1.04.    Property.   The parties hereto acknowledge  that the defined term "Property" has been defined to collectively  include each Individual  Property.   All references  to "Property" in this  Loan  Agreement  shall  be  deemed  to  refer  to  one  or  more  Individual  Properties,  as  the context requires.   It is the intent of the parties hereto in making any determinations  under  this

#1125280 v3  #1125280 v5

Loan  Agreement,   including,   without   limitation,   in  determining   whether   (a)  breach   of  a representation,  warranty or a covenant has occurred, (b) there has occurred a default or Event of Default, or (c) an event has occurred which would create recourse obligations under Article 12 of this Loan Agreement, that any such breach, occurrence or event with respect to any Individual Property shall be deemed to be such a breach, occurrence or event with respect to the Loan.

ARTICLE 2
MAXIMUM LOAN AMOUNT; PAYMENT TERMS; ADVANCES; DEFEASANCE

2.01.     Commitment to Lend.

(a)       Maximum  Loan Amount  Approved. Subject to the terms  and conditions set forth herein, and in reliance on Borrower's representations, warranties and covenants set forth herein,  Lender  agrees  to  loan  the Maximum  Loan  Amount  to  Borrower.  The  Loan  shall  be evidenced  by this Loan Agreement and by the Note made by Borrower to the order of Lender and shall bear interest and be paid upon the terms and conditions provided herein.

(b)      Advance of Maximum Loan Amount.   On the Closing Date, Lender  shall advance the entire Maximum Loan Amount to Borrower.

2.02.     Calculation of Interest.

(a)        Calculation  Basis.    Interest  due  on  the  Loan  shall  be  paid  in  arrears, calculated based on a 360-day year and paid for the actual number of days elapsed for any whole or partial month in which interest is being calculated.

(b)       Applicable Interest Rate.  Interest shall accrue on outstanding principal  at the  rate  of  five  and  sixty-six  hundredths  percent  (5.66%)  per  annum  ("Applicable  Interest Rate").

(c)       Adjustment  for  Impositions  on Loan  Payment.   All  payments  made  by Borrower hereunder shall be made free and clear of, and without reduction for, or on account of, any  income,   stamp   or  other   taxes,  levies,  imposts,   duties,   charges,   fees,  deductions   or withholdings  hereafter  imposed,  levied,  collected,  withheld  or assessed by any government  or taxing authority (other than taxes on the overall net income or overall gross receipts of Lender imposed as a result of a present or former connection between Lender and the jurisdiction  of the government  or taxing authority imposing same provided, that this exclusion shall not apply to a connection  arising  solely from  Lender's having executed,  delivered, performed  its obligations under,  received   a  payment   under,  or  enforced   this  Loan  Agreement   or  any  other   Loan Document).   If any such amounts are required to be withheld from amounts payable to Lender, the  amounts  payable  to  Lender  under  the  Loan  Documents  shall  be  increased  to  the  extent necessary to yield to Lender, after payment of such amounts, interest or any such other ·amounts payable  at the rates or in the amounts specified  herein.   If any such  amounts  are payable  by Borrower,  Borrower shall pay all such amounts by their due date and promptly send Lender a certified copy of an original official receipt showing payment thereof.   If Borrower fails to pay

such amounts when due or to deliver the required receipt to Lender, Borrower shall indemnify Lender for any incremental  taxes, interest or penalties that may become payable by Lender as a result of any such failure.

(d)       Increased  Costs  of  Maintaining  Interest.   If Lender  determines  that  the adoption  of  any  local,  state  or  federal  law,  regulation,  rule  or  guideline  (including,  without limitation,   any  change  regarding   the  imposition   or  increase   in  reserve   requirements   but excluding,  specifically,  increases  in  state  or federal  corporate  income  taxes),  whether  or  not having the force of law, does or will have the effect of reducing Lender's  rate of return on the Loan, then, from time to time, within  five (5) business  days after written demand  by  Lender, Borrower shall pay Lender such additional amount as will compensate  Lender for its reduction; provided,  however,  Lender  shall  only  require  Borrower  to pay said  amount  if: (i)  Lender  is requiring similar payment from a majority of the borrowers  under similar types of loans  made by, held by or serviced  by Lender  for Property  located  in the same  geographic  region  as the Property, and (ii) such reduction has an effect upon the rate of return to Lender on the Loan and not an immaterial increased administrative  cost imposed on businesses or lenders in general.   In addition, if any law, regulation, rule or guideline hereafter is enacted or modified, whether or not having the force of law, and compliance therewith results in an increase in the cost to Lender (including, without limitation, a reduction in the income received by Lender) in making, funding or maintaining  interest  on the Loan at the rate herein  provided, then, within  five (5) business days  after  written  demand  by  Lender,  Borrower  shall  pay  Lender  the  additional  amounts necessary to compensate Lender for such increased costs; provided, however, Lender shall only require Borrower to pay said amount if: (i) Lender is requiring similar payment from a majority of  the  borrowers  under  similar  types  of  loans  made  by,  held  by  or  serviced  by  Lender  for Property located  in the same geographic  region as the Property and (ii) such reduction  has an effect  upon  the  rate  of  return  to  Lender  on  the  Loan  and  is  not  an  immaterial  increased administrative cost imposed on businesses or lenders in general.

(e)       Acceleration.   Notwithstanding  anything to the contrary contained  herein, if Borrower is prohibited by law from paying any amount due to Lender under Section 2.02(c) or (d), Lender  may  elect  to declare  the unpaid  principal  balance  of the  Loan,  together  with  all unpaid interest accrued thereon and any other amounts due hereunder, due and payable  within ninety (90) days of Lender's  written notice to Borrower.  No Prohibited Prepayment Fee shall be due in such  event.   Lender's  delay  or failure in accelerating  the Loan upon  the discovery  or occurrence  of an event under Section 2.02(c) or (d) shall not be deemed  a waiver or estoppel against the exercise of such right.

2.03.     Payment of Principal and Interest.

(a)       Payment  at Closing.  If the Loan is funded on a date other than the first (1st) day of a calendar month, Borrower shall pay to Lender at the time of funding of the Loan an interest payment calculated by multiplying (i) the number of days from and including the date of funding to (but excluding) the first (1st) day of the next calendar month by (ii) a daily rate based on the Applicable Interest Rate and calculated for a 360-day year.

(b)       Payment  Dates.   Commencing  on  the first  (1st)  day of May,  2007  and continuing  on  the  first  (1st)  day  of  each  and  every  successive  month  thereafter  (each,  a "Payment  Due Date"),  through  and including the Payment  Due Date immediately  prior  to the Maturity  Date,  Borrower  shall  pay  consecutive  monthly  payments  of  interest  only,  at  the Applicable Interest Rate, based on the outstanding principal balance hereof and any amounts due pursuant to. Section 2.02 of this Loan Agreement.

(c)       Maturity Date.  On the first (1st) day of April, 2017 ("Maturity Date"), Borrower shall pay the entire outstanding principal balance of the Loan, together with all accrued but unpaid interest thereon and all other amounts due under this Loan Agreement, the Note or any other Loan Document.

2.04.     Payments Generally.

(a)       Delivery of Payments.  (i) All payments due to Lender under this Loan Agreement  and the other  Loan  Documents  are to  be paid  in immediately  available  funds  to Lender  at Lender's office located  at 116 Welsh  Road, P.O. Box 809, Horsham,  Pennsylvania 19044, Attn: Servicing- Accounting Manager, or at such other place as Lender may designate to Borrower  in writing  from time to time.   All amounts  due under this Loan Agreement  and the other  Loan  Documents  shall  be  paid  without  setoff,  counterclaim   or  any  other  deduction whatsoever.

(ii)   Notwithstanding  the foregoing  subsection  (i), .Lender shall provide continuous  on­ line internet  access to Borrower which details on a daily basis all activity regarding the account into  which  all  Rent  is  deposited  and  maintained  by  Lender  pursuant  to  the  terms  of  the Assignment of Leases and Rents.  Borrower shall be responsible for monitoring the account, and the failure by Walgreens  or any subsequent tenant to deposit rents on a timely basis shall in no way relieve  Borrower  of its payment obligations  hereunder.   If at any time Borrower  does not have access to the internet site for a period of more than 24 hours due to a failure on Lender's or Lender's   agent's   part  to  make  the  site  accessible  to  Borrower  via  the  internet,  or  due  to  a circumstance affecting access generally (A) to the internet site or (B) to the internet in the greater Detroit Metropolitan area, and Borrower promptly notifies Lender of such event, Lender shall thereafter be obligated to deliver to Borrower via facsimile or other suitable form of transmission a  hard  copy of such  account  activity on a daily  basis, until such time as Borrower  is able to access the internet site for at least 24 hours.

(b)       Credit for Payment Receipt.  No payment due under this Loan Agreement or any of the other Loan Documents shall be deemed paid to Lender until received by Lender at its designated office on a business day prior to 2:00 p.m. Eastern Standard Time.  Any payment received after the time established by the preceding sentence shall be deemed to have been paid on the immediately  following business day.  Each payment that is paid to Lender within ten (10) days prior to the date on which such payment is due shall not be deemed a prepayment and shall be deemed to have been received on the Payment Due Date solely for the purpose of calculating interest due.  Where a Payment Due Date falls on a date other than a business day, the Payment Due Date shall be deemed the first business day immediately thereafter.

(c)       Invalidated Payments. If any payment received by Lender is deemed by a court of competent jurisdiction to be a voidable preference or fraudulent conveyance under any bankruptcy, insolvency or other debtor relief law,  and is required to be returned by Lender, then the obligation to make such payment shall be reinstated, notwithstanding that the Note may have been marked satisfied and returned to Borrower or otherwise canceled, and such payment shall be immediately due and payable upon demand.

(d)       Late Charges.  If any payment due on a Payment Due Date is not received by Lender in full on or before the fifth (5th) day from and including the Payment Due Date on which such payment is due (e.g., if the Payment Due Date is the 1st day of month, a late charge would accrue if the full payment is not received on or before the 5th day of the month); Borrower shall pay to Lender, immediately and without demand, a late fee equal to five percent (5%) of such delinquent amount.  Notwithstanding the foregoing, the parties agree that if the Loan is not paid in full on or before the Maturity Date, the late charge under this subsection shall not apply to the balloon payment due on the Maturity Date; the Default Rate, however, shall apply as provided below..

(e)       Default Interest Rate.   If the Loan is not paid in full on or before the Maturity Date or if the Loan is accelerated following an Event of Default and during the continuance thereof, the interest rate then payable on the Loan shall immediately increase to the Applicable Interest Rate plus five hundred (500) basis points ("Default Rate") and continue to accrue at the Default Rate until full payment is received. In addition, Lender shall have the right, without acceleration of the Loan, to collect interest at the Default Rate on any payment due hereunder (including, without limitation, late charges and fees for legal counsel) which is not received by Lender on or before the date on which such payment originally was due.  Interest at the Default Rate also shall accrue on any judgment obtained by Lender in connection with collection of the Loan or enforcement of any obligations due under the other Loan Documents until such judgment amount is paid in full.

(f)        Application of Payments.   Payments of principal and interest due from Borrower shall be applied first to the payment of late fees, then to Lender advances made to protect the Property or to perform obligations which Borrower failed to perform, then to the payment of accrued but unpaid interest, and then to reduction of the outstanding principal.  If at any time Lender receives less than the full amount due and payable on a Payment Due Date, Lender may apply the amounts received to amounts then due and payable in any manner and in any order determined by Lender, in its sole discretion.  Following an Event of Default, Lender may apply all payments to amounts then due in any manner and in any order determined by Lender, in its sole discretion.  Lender's acceptance of a payment from Borrower in an amount that is less than the full amount then due and Lender's application of such payments to amounts then due from Borrower shall not constitute or be deemed to constitute a waiver of the unpaid amounts or an accord and satisfaction. No principal amount repaid may be reborrowed.

2.05.     Prepayment Rights.

(a)        Open Date.  Borrower acknowledges that Lender is making the Loan to it at the interest rate and upon the other terms herein set forth in reliance upon Borrower's promise to pay the Loan over the full stated term of this Loan Agreement and that Lender may suffer loss or other detriment if Borrower were to prepay all or any portion of the Note prior to its stated Maturity Date.   Except as provided in this Section 2.05 and in Section 10.03, Borrower  agrees that Borrower has no right to prepay all or any part of the Loan prior to the Maturity  Date. At any time on and after the 117th Payment Due Date  (the "Open Date"), Borrower may prepay the Loan in whole, but not in part, provided Borrower pays with such prepayment (i) all accrued interest and all other outstanding amounts then due and unpaid under this Loan Agreement  and under the other Loan Documents, and (ii) if the prepayment is not made on a Payment Due Date, Borrower  pays with such prepayment  the full interest amount that would have accrued  for the period from the date of prepayment through the day prior to the next Payment Due Date.

(b)     Voluntary Defeasance of the Loan.

(i)        Defeasance to Release Property from Security Instrument.   Subject to  Borrower's compliance  with  all  terms  and  conditions  of  this Section  2.05(b),  Borrower  may  defease  the Loan  in whole  or in part as set forth in Section 10.03 ("Defeasance") on any Business Day after the Lock-out Period Expiration Date (defined below) and obtain  a  release  ("Release")  of  the  Property   or  one  or  more Individual  Properties  provided  Borrower  complies  with  Section 10.03 from the lien of the Security instrument. Once a Defeasance in whole has been completed, the Loan will be secured by the Defeasance  Collateral  (defined  below),  and  thereafter  the  Loan cannot  be  the  subject  of  any  further  Defeasance  nor  prepaid  in whole  or  in  part,  notwithstanding  any  provision  of  this  Section 2.05 to the contrary.  Once partial Defeasance has been completed, the Loan will be partially secured by the Defeasance Collateral (defined  below),  and thereafter  the portion  of the Loan  defeased cannot   be  prepaid   in  whole  or  in  part,  notwithstanding  any provision of this Section 2.05 to the contrary. "Lock-out Period Expiration  Date" means the earlier to occur of (i) the third  (3rd) anniversary  of the Closing  Date,  or (ii) the  second  (2nd) anniversary of the "startup date" of the REMIC within the meaning of Section 860G(a)(9) of the Tax Code.

(ii)       Conditions  to  Defeasance.    Borrower  may  cause  a Release  or a Partial  Release  upon  the  satisfaction  of  the following  conditions (all as reasonably approved by Lender):

(A)     no  Event  or  Default  shall  exist  under  any  of  the  Loan Documents;

(B)       not less than forty-five  (45) days (but  not more  than  one hundred fifteen (115) days) prior written notice shall be given to Lender specifying the Release Date;

(C)       all accrued and unpaid interest and all other sums due under the Note,  this Loan Agreement  and under  the other  Loan Documents  up to the Release  Date including,  without limitation,  all fees, costs and expenses incurred by Lender and its. agents in connection  with such release (including,  without limitation, reasonable legal fees and expenses for the review and preparation  of the Defeasance Pledge Agreement (as defined below)  and of the other materials described in Section 2.05(b)(ii)(D) below and any related documentation, and any servicing fees, Rating Agency fees or other costs related to such release), shall be paid in full on or prior to the Release Date;
 
(D)     Borrower shall deliver to Lender on or prior to the Release Date:

(1)     The  Defeasance  Collateral  which  meets  all requirements  of subsection  2.05(b)(iii)  below and is owned by Borrower,  free and clear  of all liens and claims of third-parties.

(2)     A written  certification  of  an independent  certified public  accounting  firm  (reasonably   acceptable  to  Lender),  confirming   that  the  Defeasance Collateral will (y) in the event of Defeasance of the entire Loan generate amounts sufficient  to· make all Scheduled Debt Payments as they fall due under the Note, including full payment  due on  the  Note  on  the  Open  Date  or  (z)  in  the  event  of  partial  Defeasance  generate  amounts sufficient   to  make  scheduled  Debt  Payments  as  they  fall  due  under  the  Defeasance   Note including full payment on such Defeasance Note on the Open Date.

(3)       Lender's  form of a pledge and security agreement ("Defeasance  Pledge  Agreement")  and financing  statements  which  pledge  and  create  a first priority security interest in the Defeasance Collateral in favor of Lender.

(4)       Confirmation  in  writing  from  Lender's   custodian that it has received all of the Defeasance Collateral for the account and benefit of Lender.

(5)      In the event of a partial Defeasance, a written certification  from Borrower which confirms that, following Defeasance, Borrower  continues  to satisfy the "single purpose entity" requirements of this Loan Agreement.

(6)       Such  legal  opinions  given  by  Borrower's  counsel (which counsel must be reasonably  acceptable to Lender) as Lender may require to confirm (i) that the Defeasance Collateral and the proceeds thereof have been validly pledged to Lender, that the  Defeasance   Pledge   Agreement   and  other   Loan  Documents   after  the  Defeasance   are enforceable  against Borrower in accordance with the respective terms and Lender has a perfected first  priority  security  interest  in  the  Defeasance  Collateral,  (ii) the  release  of  the lien  of the

Security Instrument and the pledge of Defeasance Collateral will not directly or indirectly result in or cause any REMIC that then holds the Note to fail to maintain its status as a REMIC and (iii) the defeasance will not cause any REMIC to be an investment company under the Investment Company Act of 1940.

(7)     Forms  of  all  Release  Instruments,  each  in appropriate form required by the state or states in which the Property or, in the case of partial Defeasance, the state or states in which the Release Property is located.  Such other certificates, confirmations, documents or instruments as .Lender reasonably deems necessary in connection with the Defeasance, including, without limitation, a Rating Confirmation.

 
(E)    Borrower shall satisfy the requirements of Section 10.03 
hereof.

(iii)    Purchase and Ownership of the Defeasance Collateral.   The "Defeasance  Collateral" must consist only of non-callable  and non-redeemable securities issued, or fully insured as to payment, by the United States of America (including, without limitation, obligations issued or held in book-entry form of the Department of the Treasury and principal-only and interest-only strips that are issued by the United States Treasury, or non-callable obligations, the principal of and interest on which are unconditionally guaranteed by the United States of America, or senior, unsubordinated U.S. Agency for International Development (U.S.A.I.R.) guaranteed notes which mature at least four (4) business days before the appropriate Payment Due Date), or such other securities as are permitted at the time of Defeasance by the Tax Code with respect to REMIC collateral substitutions.   The Defeasance Collateral also must provide for (A) redemption payments to occur prior, but as close as possible, to all successive Payment  Due  Dates  occurring after  the  Release  Date  and  (B) deliver redemption proceeds at least equal to (1) in the event of Defeasance of the entire Loan the amount of principal and interest due on the Note on each such Payment Due Date including full payment due on the Note on the Open Date or (2) in the event of partial Defeasance the amount of principal and interest due on the Defeasance Note on each such Payment Due Date, including full payment   due   on   the  Defeasance  Note   on   the   Open   Date ("Scheduled Debt Payment"). The Defeasance Collateral shall be arranged such that redemption payments received from the Defeasance Collateral are paid directly to Lender to be applied on account of the Scheduled Debt Payments. Unless otherwise agreed in writing by Lender, the pledge of the Defeasance Collateral shall be  effectuated  through  the  book-entry  facilities  of  a  qualified

securities  intermediary  designated  by  Lender  (which  may  be Lender itself or an Affiliate of Lender if such party qualifies as a securities intermediary) in conformity with all applicable laws.

(iv)      Successor Borrower Option.   Borrower, at Borrower's expense, has the right, or, in the case of partial Defeasance, an obligation to designate an accommodation borrower ("Successor  Borrower") which satisfies Lender's  then current requirements for  a "single purpose entity" to assume at the time of Defeasance ownership of the Defeasance Collateral and liability for all or, in the  case of partial Defeasance, a portion of, related to the Partial Release Price of Borrower's obligations under this Loan Agreement, the Defeasance Pledge Agreement and the other Loan Documents (to the extent that liability thereunder survives repayment of the Loan and release of the Property or, in the case of partial Defeasance, the Release  Property).      Such  transfer   and  assumption  shall  be evidenced by a duly executed, written agreement reasonably satisfactory to Lender, whereupon Borrower (subject to satisfaction of all requirements of this Section 2.05(b)(ii)) shall be relieved ,or, in the case of partial Defeasance, partially relieved  from liability in connection with the Loan (except for those obligations which, by the express terms of the Loan Documents, survive payment of the Loan which shall be assumed by Successor Borrower). Notwithstanding any contrary provision in this Loan Agreement, no  assumption. fee is  required upon  a  transfer  of  the  Loan  in accordance with this Section.   If a Successor Borrower assumes Borrower's obligations, Lender may require as a condition to Defeasance,  such  additional  legal  opinions  from  Borrower's counsel as Lender reasonably deems necessary to confirm the valid creation and  authority of  the  Successor  Borrower (including  a nonconsolidation opinion), the assignment and assumption of the Loan and Defeasance Collateral between Borrower and Successor Borrower, and the enforceability of the assignment documents and of the  Loan Documents as the obligation of Successor Borrower.

(v)        Substitute Notes on Partial Defeasance.  With respect to any partial Defeasance,  Borrower and  Successor  Borrower, as  applicable, shall execute and deliver to Lender all documents necessary to amend and restate the Note with two substitute notes: one note having a principal balance equal to the defeased portion of the Loan  (the  "Defeased  Note")  and  one  note  having  a  principal balance equal to the undefeased portion of the Note (the "Undefeased Note").  The Undefeased Note may be the subject of a further Defeasance in accordance with the terms of this Section

	
			
	 
	 
	2.05(b) (the term ''Note" , as used in this Section 2.05(b), being deemed to refer to  the Undefeased Note that is  the subject  of further Defeasance).

	

(vi)
	

Defeasance Costs and Expenses. Borrower shall pay all reasonable

	 
	 
	costs  and  expenses  incurred  by   Lender  in   connection  with
Defeasance, which payment is required prior to Lender's issuance of the Release and whether or not Defeasance is completed.  Such expenses include, without limitation, the cost incurred by Lender

	 
	 
	to    obtain   Rating    Confirmation    contemplated   by    Section
2.05(b)(ii)(D)(7),   the   reasonable   fees   and   disbursements   of Lender's legal counsel and a processing fee to cover Lender's administrative costs to process Borrower's Defeasance request. Lender reserves the right to require that Borrower post a deposit to cover costs which Lender reasonably anticipates will be incurred.

	

(c)
	 
	

Prepayment Yield Maintenance Premium.  Borrower, at its option,

may prepay the Loan in whole, but not in part, by delivery of the outstanding balance of the Loan
less any portion of the Maximum Principal Amount that is evidenced by  a Defeased  Note together with the Yield Maintenance Premium (as defined in subsection (d) below) to Lender on any Business Day after the Lock-out Period Expiration Date and obtain a Release of the Property from the lien of the Security Instrument; provided that Borrower satisfies all of the conditions of
this Section 2.05(c).

(i)        Conditions to Release.  Borrower may cause a Release upon the satisfaction of the following conditions (all as reasonably approved by Lender):
                    
(A)    no  Event or  Default shall  exist under  any of  the  Loan Documents;

(B)      not less than forty-five (45) (but not more than one hundred fifteen (115)) days prior written notice shall be given to Lender specifying the Release Date;

(C)      all accrued and unpaid interest and all other sums due under the Note, this Loan Agreement and under the other Loan Documents up to the Release Date including, without limitation, all fees, costs and expenses incurred by Lender and its agents in connection with such Release shall be paid in full or evidenced by a Defeased Note on or prior to the Release Date;

(D)      Borrower shall deliver forms of Release Instruments, each in appropriate form required by the state or states in which the Property is located; and

(E)    Borrower  shall  deliver   such  other   certificates, confirmations, documents or instruments as Lender reasonably deems necessary in connection with the Release, including, without limitation, a Rating Confirmation.

(ii)       Release Costs and Expenses.   Borrower shall pay all reasonable costs  and  expenses  incurred  by  Lender  in  connection  with  a Release, which payment is required prior to Lender's issuance of the Release and whether or not the Release is completed.   Such expenses include, without limitation, the cost incurred by Lender to     obtain   Rating   Confirmation,    the   reasonable   fees  and disbursements of Lender's  legal counsel and a processing fee to cover Lender's administrative costs to process Borrower's Release request.  Lender reserves the right to require that Borrower post a deposit to cover costs which Lender reasonably anticipates will be incurred.

(d)       Prohibited Prepayment Prior to Open Date.  Except as otherwise set forth in Section 2.05(b) or in Section 2.05(c), if payment of all or any part of the principal balance of the Loan is tendered by Borrower, a purchaser at foreclosure, a Guarantor, or any other Person prior  to  the  Open  Date,  whether  by  reason  of  acceleration  of  the  Loan  or  otherwise  (a "Prohibited Prepayment"), such tender shall be deemed an attempt to circumvent the prohibition against prepayment set forth in Section 2.05(a) and, at Lender's option, shall be an Event of Default.  If a Prohibited Prepayment occurs and is accepted voluntarily or otherwise by Lender, then, in addition to all other rights and remedies available to Lender upon an Event of Default, a Prohibited Prepayment Fee (as defined below) shall be due to compensate Lender for damages suffered as a result of the Prohibited Prepayment, such amount shall be due in addition to the outstanding principal balance, all accrued and unpaid interest and other outstanding amounts due under the Loan Documents.   The "Prohibited Prepayment Fee" shall be a prepayment premium equal to :

		
	(i) 
	three percent (3%) of the outstanding principal balance of Note, plus

(ii)     the Yield Maintenance Premium (as defined below).

The "Yield Maintenance Premium" shall be equal to the greater of (i) one percent (1%) of the outstanding principal balance of the Note or (ii) the excess, if any, of (A) the present value ("PV") of all scheduled interest and principal payments due on each Payment Due Date in respect of the Loan for the period from the date of such accepted prepayment to the Maturity. Date, including the principal amount of the Loan scheduled to be due on the Maturity Date, discounted at an interest rate per annum equal to the Index (defined below), based on a 360-day year  of  twelve  30-day  months,  over  (B)  the  principal  amount  of  the  Loan  outstanding immediately before such accepted prepayment [i.e., (PV of all future payments) - (principal balance at time of acceleration)].  The foregoing amount shall be calculated by Lender and shall be conclusive and binding on Borrower (absent manifest error).

For  purposes  hereof,  "Index"  means  the  average  yield  for  "treasury   constant  maturities" published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) ("FRB Release"), for the second full week preceding the date of acceleration  of the Maturity  Date for instruments  having a maturity  coterminous  with the remaining  term of the Loan.   If the FRB Release is no longer published,  Lender shall select a comparable  publication  to determine  the Index.   If there is no Index for instruments having a maturity coterminous  with the remaining term of the Loan, then the weighted average yield to maturity of the Indices with maturities  next longer  and  shorter  than  such  remaining  average  life to maturity  shall be  used,  calculated  by averaging (and rounding upward to the nearest whole multiple of Ill 00 of 1% per annum, if the average is not such a multiple)  the yields of the relevant Indices (rounded, if necessary,  to the nearest 1/100 of 1% with any figure of 1/200 of 1% or above rounded upward).

(e)       Prepayment  as a Result  of  a Casualty  or  Condemnation.    Prepayments arising from Lender's  application of insurance proceeds upon the occurrence of a Casualty,  the application of a condemnation  award upon the occurrence  of a Condemnation,  or as set forth in Section  2.02  (e)  may  be  made  prior  to  the  Open  Date  without  being  deemed  a  Prohibited Prepayment and, whenever made, without payment of the Prohibited Prepayment Fee.

(f)        Revocation  of  Notice.    In  the  event  Borrower  revokes  any  notice  of defeasance   in  accordance   with  subsection   2.05(b)  above,  Borrower  shall  be  obligated   to reimburse to Lender all fees, costs and other expenses incurred in connection with such notice.

ARTICLE 3
CASH MANAGEMENT

3.01.     Intentionally Omitted.

ARTICLE 4
ESCROW AND RESERVE REQUIREMENTS

4.01.     Creation and Maintenance of Escrows and Reserves.

(a)        Control of Reserve Accounts.   On the Closing Date, each of the Reserve Accounts  shall  be  established  by  Lender.    Each  Reserve  Account  required  under  this  Loan Agreement  shall be a custodial  account established  by Lender, and, at Lender's  option,  funds deposited into a Reserve Account may be commingled with other money held by Lender.   Each Reserve Account shall be under the sole dominion and control of Lender, and Borrower shall not have any right to withdraw funds from a Reserve Account. Borrower shall be entitled to earnings or interest on funds deposited in the Reserve Accounts other than the Tax Escrow Account  and the Insurance Premium  Escrow Account; provided, however, that interest paid or payable  with respect to any Reserve Account held by or on behalf of Lender may not be based on the highest rate of interest payable by Lender on deposits and shall not be calculated based on any particular external  interest  rate or interest  rate index,  nor shall any such interest  reflect  the interest  rate utilized  by Lender to calculate interest  payable on deposits held with respect  to any particular loan or borrower or class of loans or borrowers, and Lender shall have no liability with respect to

the amount of interest paid and/or loss of principal.  Upon the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any suins then present in any or all of the Reserve Accounts to the payment of the Debt in any order as determined by Lender  in its sole discretion.

(b)       Funds Dedicated to Particular Purpose.  Funds held in a Reserve Account are not  to be used  to fund Reserve  Items contemplated  by  a different  Reserve  Account,  and Borrower  may not use and Lender shall have no obligation  to apply funds from one Reserve Account to pay for Reserve Items contemplated by another Reserve Account.   For example,  (i) funds held in the Immediate Repair Escrow Account shall not be used to pay for Replacements, Tenant  Improvements  or  Leasing  Commissions;  (ii)  funds  held  in  the  Replacement  Reserve Account  shall  not  be  used  to  pay  for  Im.rpediate Repairs,  Tenant  Improvements  or  Leasing Commissions, and (iii) funds held in the TI/LC Reserve Account shall not be used to pay for Immediate Repairs or Replacements.

(c)       Release of Reserves Upon Payment of Debt.  Upon payment in full of the Loan,  Lender  shall  disburse  to  Borrower  all unapplied  funds  held  by  Lender  in  the  Reserve Accounts pursuant to this Loan Agreement.

(d)       Release of Individual Reserve Account after Full Performance  of Reserve Items.  Lender shall disburse to Borrower all unapplied funds remaining in the Immediate Repair Escrow Account upon receipt of evidence satisfactory to Lender that (i) Borrower has completed, in the manner required by this Loan Agreement, all Reserve Items to be funded by such Reserve Account, and (ii) no Liens exist against the Property with respect to such Reserve Items.  Lender shall not be obligated to make any such disbursement  when an Event of Default exists, and in such case, Lender  may deduct from such final disbursement  all outstanding  amounts  then due and unpaid to Lender under the Loan Documents.

(e)       No Obligation of Lender.  Nothing in this Loan Agreement shall: (i) make Lender responsible  for making or completing any Reserve Item; (ii) require Lender to advance, disburse or expend funds in addition to funds then on deposit in the related Reserve Account to make  or  complete  any  Reserve  Item;  or  (iii)  obligate  Lender  to  demand  from  Borrower additional sums to make or complete any Reserve Item.

(f)        No Waiver of Default.   No disbursements made from a Reserve Account at the time when  a Borrower default or Event of Default has occurred  and is then continuing shall  be  deemed  a waiver  or  cure  by  Lender  of  that  default  or  Event  of  Default,  nor  shall Lender's rights and remedies be prejudiced in any manner thereby.

(g)       Insufficient Amounts in a Reserve Account.  Notwithstanding  that Lender has  the  right  to  require  Borrower  to  pay  any  deficiency  in  a  Reserve  Account  if  Lender determines  that amounts in a Reserve Account are insufficient,  the insufficiency  of funds  in a Reserve Account,  or Lender's  application of funds in a Reserve Account following an Event of Default  other  than  for  funding  of  the  Reserve  Items,  shall  not  relieve  Borrower  from  its obligation   to  perform  in  full  each  of  its:  (i)  obligations   and  covenants  under  this  Loan

Agreement; (ii) agreements or covenants with tenants under the Leases; and (iii) agreements with leasing agents.

(h)       Escrow  Waiver   Criteria.      Notwithstanding   anything  in   this   Loan Agreement to the contrary, Borrower shall not be required to make monthly payments to the Tax Escrow Account, the Insurance Premium Escrow Account, the Replacement Reserve Account, or the TIILC Reserve Account, provided that the following conditions (collectively, the "Waiver Criteria") are satisfied:

(i)       no Event of Default nor any event which with the passage of time or  the  giving  of  notice  or  both  would  constitute  an  Event  of Default) has occurred and is continuing under the Note, this Loan Agreement or any other Loan Document; and

(ii)      those certain leases entered into by and between Borrower or its predecessor, as landlord, and Walgreen Co. or Walgreen Louisiana Co., Inc. (in either case, "Walgreens"),  as tenant, as more particularly described on Exhibit H attached hereto, (individually or collectively, as the context may require, the "Walgreens Leases") are in full force and effect and either (A) Walgreens has taken and remains in physical possession of same or (B) Walgreens continues to maintain an Investment Grade Rating.

Upon the failure of Borrower and/or Walgreens to satisfy the Waiver Criteria, and continuing  until  the  Waiver  Criteria  are  thereafter  satisfied,  Borrower  shall  on  the  next succeeding Payment Due Date commence making monthly deposits to the Tax Escrow Account, the Insurance Premium Escrow Account, the Replacement Reserve Account and/or the TIILC Reserve Account in such amounts reasonably determined by Lender; provided, however, that if the Waiver Criteria are not satisfied solely because Walgreens fails to be in physical possession of one or more of the Individual Properties, then Borrower shall be obligated to make monthly payments to the Reserve Accounts only in such amounts as Lender reasonably allocates to such vacant Individual Properties.

4.02.     Tax Escrow.

(a)       Deposits to the Tax Escrow Account.  On the Closing Date, Borrower has deposited such amount as is noted on the closing statement relating to the closing of the Loan, to the Tax Escrow Account which is the amount determined by Lender that is necessary to pay when due Borrower's obligation for Taxes upon the later of the actual due dates or the dates prior to delinquency (if available) established by the appropriate tax or assessing authorities
. during the next ensuing twelve (12) months, taking into consideration the Monthly Tax Deposits
to  be  collected  from the  first  Payment  Due  Date  to  the  due  date  for  payment  of  Taxes. Thereafter, beginning on the first Payment Due Date and on each Payment Due Date thereafter, Borrower shall deliver to Lender the Monthly Tax Deposit, subject, however, to the terms set fmih in Section 4.01(h) above.

(b)       Disbursement  from Tax Escrow Account.   Provided  amounts in  the Tax Escrow Account are sufficient to pay the Taxes then due and no Event of Default exists, Lender shall pay the Taxes of Borrower upon the later of the due dates or the date prior to delinquency, (if available) by applying the funds held in the Tax Escrow Account to the payments  of Taxes then due.  In making any payment of Taxes, Lender may do so according to any bill, statement or estimate obtained from the appropriate  public office with respect to Taxes without inquiry  into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment,  sale, forfeiture, tax lien or title or claim thereof.

(c)        Surplus or Deficiency in Tax Escrow Account.   If amounts on deposit  in the Tax Escrow Account collected for an annual tax period exceed the Taxes actually paid during such tax period, Lender shall, in its discretion, return the excess to Borrower or credit the excess against the payments Borrower is to make to the Tax Escrow Account for the next tax period.  If
·  amounts on deposit in the Tax Escrow Account collected for an annual tax period are insufficient to  pay  the  Taxes  actually  due  during  such  tax  period,  Lender  shall  notify  Borrower  of  the deficiency and, within ten (10) days thereafter, Borrower shall deliver to Lender such deficiency amount.  If, however, Borrower receives notice of any such deficiency on a date that is within ten (10) days prior to the later of the actual due dates or the dates prior to delinquency  (if available) for such Taxes, Borrower will deposit the deficiency amount within one (1) business day after its receipt of such deficiency notice.

(d)       Changes in Amount of Taxes Due; Changes in the Monthly Tax Deposit. Borrower  shall  notify  Lender  immediately   of  any  changes  to  the  amounts,  schedules   and instructions  for  payment  of  any Taxes  of  which  it has  or  obtains  knowledge  and  authorizes Lender or its agent to obtain the bills for Taxes directly from the appropriate taxing authority.  If the  amount  due  for Taxes  shall  increase  and  Lender  reasonably  determines that  amounts  on deposit  in the Tax Escrow Account  will not be sufficient  to pay Taxes  due for an annual  tax period, Lender shall  notify Borrower  of such determination  and of the increase  needed  to the Monthly Tax Deposit.   Commencing  with the Payment Due Date specified in such notice from Lender,  Borrower  shall  make  deposits  at the  increased  amount  of  the  Monthly  Tax  Deposit subject, however, to the terms set forth in Section 4.01(h) above.

4.03.     Insurance Premium Escrow.

(a)       Deposits  to Insurance  Premium  Escrow  Account.  On the  Closing  Date, Borrower has deposited such amount as is noted on the closing statement relating to the closing of  the  Loan to the  Insurance  Premium  Escrow  Account  which  is the  amount  determined  by Lender that is necessary to pay when due Borrower's obligation for Insurance Premiums  during the next ensuing twelve (12) months, taking into consideration the Monthly Insurance Deposits to be collected from the first Payment Due Date to the due date for payment of such Insurance Premiums.  Thereafter, beginning on the first Payment Due Date and on each Payment Due Date thereafter, Borrower shall deliver to Lender the Monthly Insurance Deposit subject, however,  to the terms set forth in Section 4.0l(h) above.

(b)       Disbursement   from   Insurance   Premium   Escrow   Account.      Provided amounts in the Insurance Premium Escrow Account are sufficient to pay the Insurance Premiums then  due  and no Event  of  Default  exists,  Lender  shall  pay  the  Insurance  Premiums  as  they become due on their respective  due dates on behalf of Borrower by applying funds held in the Insurance  Premium  Escrow  Account  to  the  payments  of  Insurance  Premiums  then  due.    In making any payment relating to Insurance Premiums, Lender may do so according to any bill, statement or estimate procured from the insurer without inquiry into the accuracy of such bill, statement or estimate.

(c)        Surplus or Deficiency in Insurance Premium Escrow Account.  If amounts on deposit in the Insurance Premium Escrow Account collected for an annual period exceed the Insurance Premiums actually paid during such period, Lender shall, in its discretion, return such excess  to  Borrower  or  credit  such  excess  against  the  payments  Borrower  is  to make  to the Insurance  Premium  Escrow  Account  for the next annual period.  If amounts  on deposit  in the Insurance Premium Escrow Account collected for ru1 annual premium period are insufficient  to pay  the  Insurance  Premiums   actually  due  during  such  annual  period  Lender  shall   notify Borrower of the deficiency and, within ten (10) days thereafter, Borrower shall deliver to Lender such deficiency amount.  If, however, Borrower receives notice of any such deficiency on a date that is within ten (I0)  days prior to the date that Insurance Premiums  are due, Borrower  will deposit the deficiency  amount  within one (1) business  day after its receipt  of such  deficiency notice.

(d)       Changes  in  Insurance  Premium  Amounts;  Change  in  Monthly  Deposit Amount.   Borrower shall notify Lender immediately  of any changes to the amounts,  schedules and instructions  for payment of any Insurance Premiums of which it has or obtains knowledge and authorizes  Lender or its agent to obtain the bills for the Insurance Premiums  directly  from the insurance provider or its agent. If the amount due for Insurance Premiums shall increase and Lender  reasonably  determines   that  amounts  on  deposit  in  the  h1surance Premium   Escrow Account will not be sufficient to pay the Insurance Premiums,  Lender shall notify Borrower  of such determination and of the increase needed to the Monthly Insurance Deposit.  Commencing with the Payment Due Date specified in such notice from Lender, Borrower shall make deposits at the increased  amount  of the Monthly  Insurance  Deposit  subject,  however,  to the terms  set forth in Section 4.01(h) above.                           ·

4.04.     Immediate Repair Escrow Account.

(a)       Immediate  Repair Escrow Generally.   Amounts in the Immediate  Repair Escrow  Account  are  to  be  used  for  the  purpose  of  funding  the  Immediate  Repairs,  which Borrower covenants and agrees to perform in accordance with the terms of this Loan Agreement on or before the dates specified on Exhibit C but not later than twelve (12) months from the date hereof.

(b)       Deposit to the Immediate Repair Escrow Account. On the Closing Date, Borrower shall deposit $0.00 with Lender as the reserve for completion of the Immediate  Repairs ("Immediate Repair Deposit").

(c)        Disbursements from the Immediate Repair Escrow Account.  Lender shall make disbursements  from the Immediate Repair Escrow Account upon Borrower's performance, to Lender's  satisfaction, of all conditions to disbursement set forth in Article 5 of this Loan Agreement.

(d)       Reassessment  of  Required  Deposit.    If  at  any  time  Lender  reasonably determines  that  the  Immediate  Repair  Deposit  will  not  be  sufficient  to  pay  the  cost  of  the Immediate  Repairs,  Lender  may  notify  Borrower  of  such  determination  and  of  the  amount estimated by Lender to make-up such deficiency as reasonably determined by Lender based upon changes in circumstances.   Within ten (10) days after such notice from Lender, Borrower  shall deliver  the  deficiency  amount  to  Lender,  and  Lender  shall  deposit  in  the  Immediate  Repair Escrow Account and hold and administer same in accordance with this Loan Agreement subject, however, to the terms set forth in Section 4.01(h) above.

4.05.     Replacement Reserve Account.

(a)        Replacement  Reserve  Generally.   Amounts  in the Replacement  Reserve Account are to be used for the purpose of funding the Replacements,  which Borrower covenants and agrees to perform in accordance with the terms of this Loan Agreement.

(b)       Deposits  to  the  Replacement  Reserve  Account.    On  the  Closing  Date, Borrower  shall  deposit  $0.00  with  Lender  as  an initial  deposit  to  the  Replacement  Reserve Account.  Subject to the terms set forth in Section 4.01(h) above, beginning on the first Payment Due Date and on each Payment Due Date thereafter, Borrower shall pay $0.00 ("Monthly Replacement Reserve Deposit") to Lender as a deposit to the Replacement Reserve Account.

(c)       Disbursements  from  the  Replacement  Reserve  Account.    Lender  shall make disbursements  from the Replacement  Reserve Account upon Borrower's performance,  to Lender's  satisfaction, of all conditions to disbursement set forth in Article 5 hereof.

(d)       Reassessment  of Required Monthly Deposits.   Lender may, from time to time  based  on  Lender's   inspections  of  the  Property,  reassess  its  estimate  of  the  Monthly Replacement  Reserve  Deposit  and may increase such amount on not less than thirty (30) days written  notice  to  Borrower  if  Lender  determines   that  an  increase  is  necessary  (i)  to  fund replacements  not  listed  as part of  the Replacements  (and  not  intended  to be covered  by  the Immediate Repair Escrow Account or TIILC Reserve Account) which are advisable to keep the Property in good order, repair and marketable  condition, or (ii) to fund the replacement  of any major building systems or components (e.g., roof, HVAC system) not listed as part of the Replacements  (and  not  intended  to be covered  by the  Immediate  Repair  Escrow  Account  or TIILC Reserve Account) which will reach the end of its useful life within two (2) years of the date of Lender's inspection subject, however, to the terms set forth in Section 4.01(h) above.

4.06.     TI/LC Reserve Account.

(a)        TI/LC Reserve  Generally.  Amounts in the TVLC Reserve  Account are to be used  for the purpose  of funding  the costs of Tenant  Improvements and Leasing  Commissions that are paid by Borrower during the term of the Loan.

(b)        Deposits to the TVLC Reserve  Account.    On the Closing  Date,  Borrower shall  deposit  $0.00  (the "Initial TI/LC Deposit") with  Lender  as an initial  deposit  to the TI/LC Reserve Account.  Subject  to the terms set forth in Section  4.01(h)  above, beginning on the first Payment  Due  Date   and  on  each  Payment   Due  Date  thereafter,  Borrower  shall  pay   $0.00 ("Monthly TIILC Deposit") to Lender as an additional deposit to the TVLC Reserve  Account.

(c)       Disbursements from the TI/LC Reserve Account.   Lender shall  make disbursement from the TI/LC Reserve Account  as follows:

(i)         Lender shall make disbursements from the TVLC Reserve Account to  reimburse Borrower for  Tenant  Improvements required  under any  new  Lease  or  any  modification, renewal  or  extension of  an existing  Lease  paid  by  Borrower, in  accordance with  the disbursement    procedures    (including    evidence    of     lien-free performance) set forth  in Article  5 hereof,  provided  that:    (A)  the Tenant  Improvements are required under  any new Lease  or any modification, renewal  or extension of any existing  Lease,  provided that any such  new  Lease  or modification, renewal  or extension of an existing  Lease is entered  into in accordance with the terms  and provisions        of   Section    9.06;    (B)   the    cost    of   such    Tenant Improvements is market,  reasonable and customary; (C) the Tenant Improvements   are   fully   performed   in   accordance   with    the standards set  forth  in  Article  5  hereof   and  have  been   accepted without   condition  by  the  related   tenant;   (D)   unless   otherwise agreed  to  by  Lender,  the  related  tenant  is  occupying the  space benefited  by the Tenant  Improvements and has commenced paying rent;  (E)  if  required   by  Lender,   the  related   tenant   shall   have executed     and     delivered      a     subordination,   non-disturbance agreement  and an estoppel  certificate or both  all on such  forms  as is  reasonably  acceptable  to  Lender;   and  (F)  unless   otherwise agreed by Lender,  the related  Lease has an effective rental  rate, net of  any  concessions, of  at least  90%  of  the  proforma rents  at the Property;

(ii)        Lender shall make disbursements from the TVLC Reserve Account to reimburse Borrower for Leasing  Commissions paid by Borrower in accordance with the disbursement procedures set forth in Article
5  hereof   provided   that:     (A)   such   leasing   commissions   and
"override"  leasing    c01mnissions    are   market,    reasonable   and customary for properties similar  to the Property  and the portion of

the Property leased for which a commission is due and, unless otherwise agreed by Lender, with respect to a new Lease at the Property do not exceed six percent (6%) of the total amount of base rent payments under the related Lease and with respect to renewal Leases with existing Tenants at the Property do not exceed two percent (2%) of the total amount of the base rent payments under the related Lease; (B) the amount of such leasing commissions and "override" leasing commissions are determined pursuant to arms length transactions between Borrower and each such leasing agent to which a commission is due; (C) the Lease has been approved by Lender in accordance with this Loan Agreement or, if Lender's approval is not required, conforms with all requirements set forth in Section 9.06 of this Loan Agreement (D) unless otherwise agreed by Lender, the tenant under the Lease for which such Leasing Commission is claimed has taken occupancy of the leased space and commenced paying rent and (E) unless otherwise agreed by Lender, the related Lease has an  effective rental rate, net of any concessions, of at least 90% of the pro forma rents at the Property.

(d)       Deposit Reassessment. Lender may, from time to time, based on Lender's review of Leases and leasing information relating to the Property, reassess its estimate of the Monthly TI/LC Deposit and may increase such amount on not less than thirty (30) days written notice to Borrower if Lender determines that an increase is necessary to maintain  a proper reserve to pay the costs of likely Tenant Improvements or Leasing Commissions that may arise during the remaining term of the Loan subject, however, to the terms set forth in Section 4.01(h) above.

4.07.     Excess Cash Flow Reserve Account.

(a)       Deposits to the Excess Cash Flow Reserve Account.   Excess cash flow generated by the Property shall be deposited into the Excess Cash Flow Reserve Account in accordance with the provisions of Section 1.04(b) of the Assignment of Leases and Rents.

(b)       Excess Cash Flow Reserve Generally. Amounts in the Excess Cash Flow Reserve Account shall be held in the Excess Cash Flow Reserve Account as additional collateral for the Loan.

ARTICLE 5
COMPLETION OF REPAIRS RELATED TO RESERVE ACCOUNTS; CONDITIONS TO RELEASE OF FUNDS

5.01.   Conditions Precedent to  Disbursements from Certain Reserve Accounts.   The following provisions apply to each request for disbursement from the Immediate Repair Escrow Account, the Replacement Rese!-"e Account and the TI/LC Reserve Account:

(a)       Disbursement  only  for  Completed  Repairs.     Disbursements  shall  be limited to Reserve Items that are fully completed and paid for in full by Borrower except to the extent permitted under Section 5.01(b) of this Loan Agreement and, in the case of Leasing Commissions, fully and unconditionally earned and paid in full by Borrower.  At no time shall Lender be  obligated  to  pay  amounts to  Borrower in  excess of  the  current balance  in  the applicable Reserve Account at the time of disbursement.

(b)       Partial Completion. Lender may agree to disburse funds for Reserve Items prior to completion thereof where (i) the contractor performing such work requires periodic payments pursuant to the terms of its written contract with Borrower and Lender has given its prior written· approval to such contract, and (ii) the cost of the portion of the Reserve Item to be completed under such contract exceeds $10,000.00.

(c)       Disbursement Request; Maximum Frequency and  Amount.    Borrower shall submit to Lender a Disbursement Request together with such additional information as Lender may reasonably request in connection with the Disbursement Request at least ten (10) business days prior to the date on which Borrower requests Lender to make a disbursement from a  Reserve Account.   Unless otherwise agreed to by Lender, Borrower may not submit, and Lender shall not be required to make, more than one (1) disbursement from each Reserve Account during any calendar month.   No Disbursement Request shall be made for less than
$2,500.00 or the total cost of the Reserve Items, if less.

(d)       No  Existing  Event  of  Default.     Lender  may  refuse  to  make  any disbursement if an Event of Default exists as of the date on which Borrower submits the Disbursement Request or on the date the disbursement is actually to be made.

(e)       Responsible Officer Certificate. Lender must receive a certificate, signed by a Responsible Officer of Borrower (and, at Lender's  option, also signed by Borrower's project architect or engineer if the cost of a single Reserve Item or the aggregate amount of the Disbursement Request exceeds $50,000.00), which certifies that:

		
	(i)        All information stated in  the Disbursement Request is  true and correct
	in   all   material   respects,   each   attachment   to   the Disbursement Request is correct and complete, and if the attachment is a copy of the original, that it is a true and an accurate reproduction of the original;

(ii)      Each of the Reserve Items to be funded in connection with the Disbursement Request was performed in a good and workmanlike manner and in accordance with all Requirements of Law, and has been paid in full by Borrower;
(iii)     The  Leasing  Commission  has  been  fully  and  unconditionally earned and paid in full by Borrower, if the Reserve Item to be funded is Leasing Commission;

(iv)      Subject to Section 5.03, each party that supplied materials, labor or services has been paid in full (for the portion for which disbursement is sought in the case of disbursements authorized in accordance with Section 5.01(b) hereof); and

(v)    In the case of disbursements authorized in accordance with Section
5.01(b) hereof, the materials for which the request are made are on-site at the Property and properly secured or have been installed
in the Property.

(f)       Inspection to Confirm Completion.   Prior to making any disbursement which exceeds $50,000.00 in the aggregate or for a single Reserve Item, Lender may require an inspection of the Property, performed at Borrower's expense, to verify completion thereof.

(g)       Absence of Liens. Lender may require that Borrower provide Lender with any or all of the following: (i) a written lien waiver acceptable to Lender from each party to be paid who is to receive payment of $10,000.00 or more in connection with the Disbursement Request; (ii) a search of title to the Property effective to the date of the disbursement which shows no Liens other than the Permitted Encumbrances; or (iii) an endorsement to the Title Insurance Policy which updates the effective date of such policy to the date of the disbursement and shows no Liens other than the Permitted Encumbrances.

(h)       Payment  of  Lender's  Expenses.    Borrower  shall  pay  all  reasonable expenses incurred by Lender in processing Borrower's Disbursement Request including, without limitation, any inspection costs (whether performed by Lender or an independent inspector selected by Lender) and reasonable legal fees and expenses.

(i)        Other Items Lender Deems Necessary.  Lender shall have received such other evidence as Lender reasonably requests in connection with its confirmation that each Reserve Item to be paid in connection with the Disbursement Request has been completed or performed in accordance with the terms of this Loan Agreement.

5.02.   Waiver of Conditions to Disbursement.   No waiver given by Lender of any condition  precedent  to ·  disbursement  from  a  Reserve Account  shall  preclude  Lender  from requiring that such condition be satisfied prior to making any other disbursement from a Reserve Account.

5.03.   Direct Payments to Suppliers and Contractors.  Lender, at its option, may make disbursements directly to the supplier or contractor to be paid in connection with the Disbursement Request.  Borrower's execution of this Loan Agreement constitutes an irrevocable direction and authorization for Lender to make requested payments directly to the supplier or contractor, notwithstanding any contrary instructions from Borrower or notice from Borrower of a dispute with such supplier or contractor.  Each disbursement so made by Lender shall satisfy Lender's obligation under this Loan Agreement.  If requested by Borrower any disbursement to

any one supplier or contractor which is in excess of $10,000.00  may be paid directly by Lender to such supplier or contractor.

5.04.     Performance  of Reserve Items.

(a)       Performance  of  Reserve  Items.     Borrower  agrees  to  commence   each Reserve Item by its required commencement  date stated on the applicable Exhibit to this Loan Agreement  identifying  such Reserve Item and to pursue completion diligently of each Reserve Item  on  or  before  its  completion  date  stated  on  such  Exhibit  and,  in  the· absence   of  a commencement  date or completion  date being specified,  when necessary  in order to keep  the Property in good order and repair, in a good and marketable  condition and as necessary to keep any portion thereof  from deteriorating,  or in the case of Tenant  Improvements,  when required under  the  Leases.    Borrower  shall  complete  each  Reserve  Item  in  a  good  and  workmanlike manner,  using only new materials  of the same or better quality than that being replaced.    All Reserve Items shall be performed in accordance with, and upon completion  shall comply  with, all Requirements of Law (including without limitation obtaining and maintaining in effect all necessary permits and governmental approvals) and all applicable insurance requirements.

(b)       Contracts.    Lender  shall  have  the  right,  at  its  option,  to  approve  all contracts or work orders  with materialmen, mechanics,  suppliers, subcontractors,  contractors  or other parties providing labor or materials in connection with the Reserve Items which contract contains costs in excess of $10,000.00.

(c)        Entry onto Property.   Subject  to the rights of the tenant  set forth  in the Walgreens Lease, in order to perform inspections or, following an Event of Default, to complete Reserve  Items which  Borrower  has failed to perform,  Borrower  hereby  grants Lender  and its agents the right, from time to time, to enter onto the Property upon twenty-four (24) hours notice, which may be telephonic,  except that no notice shall be required in an emergency  or  after an Event of Default.

(d)       Lender Remedy for Failure to Perform.   In addition to Lender's  remedies following an Event of Default, Borrower acknowledges that Lender shall have the right (but not the obligation) to complete or perform the Reserve Items for which amounts have been reserved under  this  Loan  Agreement  (or  pay  the  Leasing  Commissions  as  applicable)  and  for  such purpose,  Borrower  hereby  appoints  Lender its attorney-in-fact  with full power of substitution (and which shall be deemed to be coupled with an interest and irrevocable until the Loan is paid in full and the Security  Instrument is discharged of record, with Borrower  hereby ratifying  all that its said attorney shall do by virtue thereof):   (i) to complete or undertake such work in the name of  Borrower;  (ii)  to proceed  under existing  contracts  or to terminate  existing  contracts (even  where  a termination  penalty  may be  incurred)  and  employ  such  contractors, subcontractors, watchmen, agents, architects and inspectors as Lender determines necessary or desirable for completion of such work; (iii) to make any additions, changes and corrections to the scope of the work  as Lender deems necessary or desirable  for timely completion;  (iv) to pay, settle or compromise  all existing bills and claims which  are or may become  Liens against  the Property  or as may be necessary  or desirable for completion  of such work;  (v) to execute  all

applications  and certificates in the name of Borrower which may be required to obtain  permits and approvals for such work or completion of such work; (vi) to prosecute and defend all actions or proceedings in com1ection with the repair or improvements to the Property; and (vii) to do any and every  act which  Borrower  might  do in its own behalf  to fulfill  the terms  of Borrower's obligations  under this Loan Agreement.   Amounts expended by Lender which exceed  amounts held  in  the  Reserve  Accounts  shall  be  added  to  the  Maximum   Loan  Amount,   shall  be immediately  due  and  payable,  and  shall  bear  interest  at  the  Default  Rate  from  the  date  of disbursement until paid in full.

ARTICLE 6
LOAN SECURITY AND RELATED OBLIGATIONS

6.01.    Security Instrument and Assignment of Rents and Leases.  Payment of the Loan and performance  of the Obligations shall be secured, inter alia, by the Security Instrument  and the Assignment of Leases and Rents.  Borrower shall execute at closing the Security Instrument and the Assignment of Leases and Rents and abide by its obligations thereunder.

6.02.    Assignment  of  Property  Management  Contract.     Borrower  and  the  Property Manager shall execute at closing the Assignment  of the Property Management  Contract  and to abide by their respective obligations thereunder.

6.03.    Assignment of Operating Agreements.   As security for payment of the Loan and performance by Borrower of all Obligations, Borrower hereby transfers, sets over and assigns to Lender all of Borrower's right, title and interest in and to the Operating Agreements,  if any, to Lender for security purposes.

.  6.04.    Pledge of Property;  Grant of Security  Interest.   As security  for payment  of the Loan and performance  by Borrower of all Obligations,  Borrower hereby pledges, assigns,  sets over and transfers  to Lender, and grants to Lender a continuing security interest in and to: (a) each of the Reserve Accounts and the Operating Account, (b) all funds and monies from time to time deposited  or held in each of the Reserve Accounts and the Operating Account,  and (c) all interest  accrued,  if  any,  with  respect  to  the  Reserve  Accounts  and  the  Operating  Account; provided that Lender shall make disbursements from each of the Reserve Accounts when, as and to the extent required by this Loan Agreement and Borrower may make withdrawals from the Operating Account in accordance with this Loan Agreement.  The parties agree that each of the Reserve  Accounts  and the  Operating  Account  is a "deposit  account"  within  the  meaning  of Article  9 of  the  UCC  and  that this  Loan  Agreement  also  constitutes  a "security  agreement" within the meaning of Article 9 of the UCC.  Borrower shall not, without Lender's  prior written consent,  further  pledge,  assign,  transfer  or  grant  any security  interest  in  any  of  the  Reserve Accounts, or in the Operating Account nor permit any Lien to attach thereto, except as may be created in favor of Lender in connection with the Loan.

6.05.    Environmental  Indemnity  Agreement.    Borrower  and  each  Guarantor  will  be required to execute at closing the Environmental Indemnity and to abide by their obligations thereunder.

6.06.     Guaranty of Borrower  Sponsors.   Each Guarantor will be required to execute  at closing the Guaranty and to abide by its obligations thereunder.

ARTICLE 7
SINGLE PURPOSE ENTITY REQUIREMENTS

7.01.     Commitment  to be a Single Purpose  Entity.   Borrower represents,  warrants  and covenants to Lender as follows:

(a)     Borrower  is  a Single  Purpose  Entity  and  will  continue  to  be  a  Single
Purpose Entity at all times until the Loan has been paid in full.

(b)     SPE Equity Owner is a Single Purpose Entity and will continue  to be a
Single Purpose Entity at all times until the Loan has been paid in full.

(c)       The  Organizational   Chart  attached  to  this  Loan  Agreement   is  true, complete and correct.

(d)       All  of  the  factual  assumptions  made  in  any  substantive  consolidation opinion delivered by Borrower's counsel to Lender (if any) are, as of the date of such opinion, true and correct in all respects.

(e)       The  "single  purpose  entity"  provisiOns included  in  the  organizational documents of Borrower and SPE Equity Owner shall not, without Lender's  prior written consent, be amended, rescinded or otherwise revoked until the Loan has been paid in full.

(f)        Prior to the withdrawal  or the disassociation  of the SPE  Equity  Owner from Borrower, Borrower shall immediately appoint a new general partner or managing member whose  organizational  documents  are substantially  similar  to those of the original  SPE  Equity Owner and, if an opinion letter pertaining to substantive  consolidation  was required at closing, deliver a new substantive consolidation opinion letter with respect to the new SPE Equity Owner and its equity owners which is acceptable in all respects to Lender and to the Rating Agencies if a Securitization  has occurred.   (The requirements  of this subsection  shall not be construed  to permit a Transfer in violation of Article 10.)

7.02.     Definition of Single Purpose Entity.

(a)       Borrower Criteria.  With respect to Borrower, a "Single Purpose Entity" means a corporation, limited partnership or limited liability company which, at all times since its formation and thereafter:

(i)        has not and shall not engage in any business or activity, other than with respect    to    Borrower,    the    ownership,    operation    and maintenance of the Property and activities incidental thereto;

(ii)       has not and shall not, acquire or own any assets other than  with respect to Borrower, the Property and such incidental Personal Property as may be necessary for the operation of the Property;

		
	(iii)     
	if such entity is (A) a limited liability company (other than a single member limited liability company which satisfies the requirements of clause (iv) below), has had and shall have at least one member that satisfies the requirements of Section 7.02(b) below and such member is its managing member, and (B) a limited partnership, all of   its   general   partners   have   satisfied   and   shall   satisfy   the requirements of Section 7.02(b) below;

(iv)      if such entity is a single member limited liability  company,  such entity shall be (A) formed and organized under Delaware law and otherwise comply with all other Rating Agency criteria for single member limited liability companies (including, without limitation, the inclusion  of a "springing  member"  and delivery  of Delaware single member limited liability company opinions acceptable in all respects to Lender and to the Rating Agencies); and (B) such entity shall have at least one (1) Independent Director on its board of managers;

(v)     if such entity is a corporation, has had and shall have at least one
(1) Independent Director on its board of directors;

(vi)         has and shall  preserve its  existence  as an entity  duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction of its formation or organization;
(vii)     has not and shall not merge or consolidate with any other Person; (viii)     has not taken, and shall not take, any action to dissolve,  wind-up,
terminate   or  liquidate  in  whole  or  in  part;  to  sell,  transfer  or
otherwise dispose of all or substantially all of its assets; to change its legal structure; transfer or permit the direct or indirect  transfer of any partnership, membership or other Equity Interests, as applicable, other than Permitted Transfers; issue additional partnership, membership or other Equity Interests, as applicable; or seek to accomplish any of the foregoing;

		
	(ix)     
	shall not, without the unanimous written consent of all Borrower's partners, members, or shareholders, as applicable, and the written consent of 100% of the members of the board of directors of the SPE Equity Owner or board of managers in the case of a single member limited liability company, including without limitation the

Independent Director(s):  (A) file or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute; (B) seek or consent to the appointment of a receiver, liquidator or any similar official; or (C) make an assignment for the benefit of creditors;

(x)      has   not,   and  shall  not  amend  or   restate  its  organizational documents if such change would adversely impact or result in any additional conflicts with the requirements set forth in this Section
7.02;

(xi)     shall not own any subsidiary or make any investment in, any other
Person;
(xii)    shall not commingle its assets with the assets of any other Person; (xiii)    has not, and shall not, incur any debt, secured or unsecured, direct
or contingent (including, without limitation, guaranteeing any obligation), other than the Loan and customary unsecured trade
payables incurred in the ordinary course of owning and operating the Property provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a maximum amount of two percent (2%) of the outstanding principal amount of the Loan and are paid within sixty (60) days of the date incurred;

		
	(xiv)   shall  maintain  its  records,  books  of  account,  bank  accounts, financial
	statements,   accounting   records    and   other    entity documents separate and apart from those of any other Person;

		
	(xv)     
	shall only enter into any contract or agreement with any general partner, member, shareholder, principal or Affiliate of Borrower or Guarantor, or any general partner, member, principal or Affiliate thereof, upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an ann's­ length basis with third parties;

(xvi)    shall not maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person;

		
	(xvii)  
	shall not assume or guaranty the debts of any other Person, hold itself out to be responsible for the debts of another Person, or otherwise pledge its assets for the benefit of any other Person or

hold out its credit as being available  to satisfy the obligations  of any other Person;

(xviii)  shall not make any loans or advances to any other Person;

(xix)    shall file its own  tax returns  as required  under  federal  and  state law;

		
	(xx)    
	shall  hold  itself  out  to  the public  as a legal  entity  separate  and distinct from any other Person and conduct its business solely in its own  name  and  shall  correct  any known  misunderstanding regarding its separate identity;

(xxi)    shall   maintain    adequate   capital   for   the   normal    obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations;

(xxii)   shall   allocate   shared   expenses   (including,   without   limitation, shared  office  space)  and  use  separate  stationery,  invoices   and checks;

(xxiii)  shall  pay  (or  cause  the  Property  Manager  to  pay  on  behalf  of Borrower from Borrower's funds) its own liabilities (including, without  limitation,  salaries  of its  own  employees)  from  its  own funds; and

(xxiv)  shall not acquire obligations  or securities of its partners, members or shareholders, as applicable.

(b)       SPE Equity Owner Criteria.  With respect to SPE Equity Owner, a "Single Purpose  Entity" means  a corporation  or a Delaware single member  limited liability  company which, at all times since its formation  and thereafter complies in its own right with each of the requirements contained in Section 7.02(a)(i)- (xxiv), except that:

(i)        with respect to Section 7.02(a)(i) the SPE Equity Owner shall not engage  in  any  business   or  activity  other  than  being  the  sole managing member or general partner, as the case may be, of the Borrower and owning its Equity Interest in Borrower;

(ii)       with respect to Section 7.02(a)(ii),  the SPE Equity Owner has not and  shall  not  acquire  or  own  any  assets  other  than  its  Equity Interest in Borrower; and

(iii)      with respect to Section 7.02(a)(xiii)  the SPE Equity Owner has not and  shall  not  incur  any  debt,  secured  or  unsecured,  direct  or

contingent    (including,    without    limitation,    guaranteeing   any obligation).

7.03.   Lender's  Acknowledgment.  Notwithstanding anything to the contrary in this Loan Agreement, Lender acknowledges that Borrower does not satisfy the following criteria to · be a Single Purpose Entity: the delivery of Delaware single member limited liability company opinions with respect to  the SPE Equity Owner.   Lender reserves the right to require,. any transferee of the Property approved by Lender at its sole discretion under Section 10.2 below to comply with and satisfy all of the Single Purpose Entity criteria set forth in Article 7 hereof (and in any other provisions of this Loan Agreement).

7.04.   Acknowledgment; Conflicts.  Borrower and Lender hereby acknowledge that the provisions set forth in the respective organizational documents of both Borrower and SPE Equity Owner are, in their current form, consistent with, and do not violate, the terms of this Article 7; provided, however, that in the event a conflict arises between the provisions of this Article 7 and of the organizational documents, the terms of the organizational documents shall govern and any such conflict shall not be deemed an Event of Default as long as each of Borrower and SPE Equity Owner continues to operate in compliance with the provisions currently set forth in its respective organizational documents.

ARTICLE 8 REPRESENTATIONS  AND WARRANTIES

Borrower represents and warrants to Lender that, as of the Closing Date:

8.01.   Organization; Legal Status.   Borrower and each SPE Equity Owner are duly organized, validly existing and in good standing under the laws of its state of formation and Borrower; (a) is duly qualified to transact business and is in good standing in the state where the Property is located; and (b) has all necessary approvals, governmental and otherwise, and full power and authority to own, operate and lease the Property and otherwise carry on its business as now conducted and proposed to be conducted.  Borrower's correct legal name is set forth on the first page of this Loan Agreement.  Borrower is a "registered organization" within the meaning of the UCC and Borrower's organization identification number issued by its state of organization is correctly stated on the signature page to this Loan Agreement.

8.02.   Power;  Authorization;  Enforceable  Obligations.     Borrower  has  full  power, authority and legal right to· execute, deliver and perform its obligations under the Loan Documents.  Borrower has taken all necessary action to authorize the borrowing of the Loan on the terms and conditions of this Loan Agreement and the other Loan Documents, and Borrower has taken all necessary action to authorize the execution and delivery of its performance under the Loan Documents.  The officer or representative of Borrower signing the Loan Documents has been duly authorized and empowered to do so.  The Loan Documents constitute legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their terms.

8.03.    No  Legal  Conflicts.    The  borrowing  of  the  Loan  and  Borrower's  execution, delivery  and performance  of its obligations  under  the  Loan  Documents  will  not: (a)  violate, conflict with or result in a default (following notice and/or expiration  of the related grace/cure period without cure or both, as applicable) under any agreement or other instrument to which Borrower is a party or by which the Property may be bound or affected, or any Requirements  of Law (including,  without limitation,  usury laws); (b) result in the creation or imposition  of any Lien whatsoever upon any of its assets, except the Liens created by the Loan Documents; nor (c) require  any  authorization  or  consent  from,  or  any  filing  with,  any  Governmental  Authority (except for the recordation of the Security Instrument in the appropriate land records in the state where the Property is located and UCC filings relating to the security interest created hereby and by  the  Security  Instrument  which  are  necessary  to  perfect  Lender's   security  interest  in  the Property).

8.04.    No   Litigation.      No   action,   suit,   or   proceeding   or   investigation,   judicial, administrative   or  otherwise   (including,  without  limitation,   any  reorganization,   bankruptcy, insolvency or similar proceeding)   currently is pending or, to the best of Borrower's knowledge, threatened or contemplated  against or affecting Borrower, SPE Equity Owner,  any Guarantor  or the  Property  that  has  not  been  disclosed  by  Borrower  in  writing  to  Lender  and  which,  if adversely determined, could reasonably be expected to have a Material Adverse Effect.

8.05.    Business Purpose of Loan.  Borrower will use the proceeds of the Loan solely for the purpose  of carrying on a business or commercial  enterprise  and not for personal, family or household purposes.

8.06.    Warranty  of Title.   Borrower has good, marketable  and insurable fee simple  title of record to the Property, free and clear of all Liens whatsoever except for the Permitted Encumbrances.    When  properly  filed  in  the  appropriate  recording  or  filing  office,  the  UCC financing  statements  covering all Personal Property  (including,  without limitation,  the Leases), all  in  accordance  with  the  terms  thereof,  will  in  each  case  be  subject  only  to  Permitted Encumbrances.    None  of  the  Permitted  Encumbrances,  individually  or  in  the  aggregate:  (a) materially interferes with the benefits of the security intended to be provided by the Security Instrument,  (b) materially  and adversely affects the value of the Property, or (c) materially  and adversely  impairs  the use and operations  of the Property.   Borrower  owns or has rights  in all collateral given as security for the Loan, free and clear of any and all Liens except for the Liens created in favor of Lender in connection with the Loan.  Borrower shall forever warrant, defend and preserve  the title and the validity and priority of the Liens created  in favor of  Lender  in connection  with the Loan and shall forever warrant and defend the same to Lender against  the claims of all persons whomsoever.

8.07.    Condition of the Property.  To the best of Borrower's knowledge, information  and belief,  and  subject  to  the  information  contained  in  those  certain  property  condition·  reports prepared and delivered to Lender in connection with the underwriting of the Loan: (a) the Improvements  are structurally sound, in good repair and free of any material defects in materials and workmanship  and have been  constructed  and installed  in substantial  compliance  with  the

plans and specifications relating thereto; (b) all major building systems located within the Improvements (including, without limitation, the heating and air conditioning systems, the electrical systems, plumbing systems; (c) all liquid and solid waste disposal, septic and sewer systems) are in good working order and condition and to the best of Borrower's knowledge, infonnation and belief, in compliance with all Requirements of Law and (d) the Property is free from damage caused by fire or other casualty.

8.08.   No Condemnation. No Condemnation proceeding has been commenced or, to the best of Borrower's knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of roadways providing access to the Property.

8.09.    Requirements of Law.   The Property and its present and contemplated use and occupancy are in material compliance with all Requirements of Law.

8.10.   Operating Permits.   Borrower, as fee owner and subject to the terms of the Walgreens Lease to the extent the landlord thereunder is obligated to do so, has obtained all licenses, pennits, registrations, certificates and other approvals, governmental and otherwise (including, without limitation, zoning, building code, land use and environmental), necessary for the use, occupancy and operation of the Property and the conduct of its business thereat, all of which are in full force and effect as of the date hereof.  No event or condition currently exists which could result in the revocation, suspension, or forfeiture thereof.

8.11.   Separate Tax Lot.  Except as may be disclosed in the Title Insurance Policy, the Property is assessed for real estate tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting a part of the Property.

8.12.   Flood  Zone.    Except  as  otherwise disclosed  on  the  survey  of  the  Property provided to Lender in connection with the Loan, no portion of the Improvements is located in an area identified by the Federal Emergency Management Agency or any successor thereto, as an area having special flood hazards.

8.13.   Adequate  Utilities.    To  the  best  of  Borrower's  knowledge,  the  Property  is adequately served by all utilities required for the current or contemplated use thereof.  All water and sewer systems are provided to the Property by public utilities, and the Property has accepted or is equipped to accept such utility services.

8.14.   Public Access.  To the best of Borrower's knowledge, all public roads and streets necessary for access to the Property for the current or contemplated use thereof have been completed, are serviceable and all-weather, and are physically and legally open for use by the public.

8.15.   Boundaries.  Except as otherwise disclosed in the Title Insurance Policy and the survey of the Property delivered to Lender in connection with this Loan, all of the Improvements lie wholly within the boundaries and building restriction lines of the Property, and no easements or  other  encumbrances  affecting the  Property  (including, without  limitation,  the  Permitted

Encumbrances) encroach  upon  any  of  the  Improvements.    No  improvements  on  adjacent properties encroach upon the Property.

8.16.  Mechanic Liens. To the best of Borrower's knowledge, no mechanics', materialmen's or similar liens or claims have been, or may be, filed for work, labor or materials affecting the Property which are or may be Liens prior, equal or subordinate to the Security Instrument.

8.17.   Assessments.     To  the  best  of  Borrower's   knowledge,  no  unpaid   special assessments for public improvements or assessments otherwise affecting the Property currently exist (other than assessments for utilities) or, to the best of Borrower's knowledge, are pending, nor are improvements contemplated to tl1e Property that may result in any such assessments (other than assessments for utilities).

8.18.   Insurance.  In the event Walgreens shall not be in compliance with the terms of the Walgreens Lease to provide insurance, Borrower shall obtain and deliver to Lender all insurance policies Lender has required pursuant to Section 9.03 of this Loan Agreement, with all Insurance Premiums prepaid thereunder, reflecting the insurance coverage, amounts and other requirements set forth in this Loan Agreement.  No claims have been made under any of such insurance policies, and no party, including Borrower, has done, by act or omission, anything which would impair the coverage of any of such insurance policies.

8.19.   Leases.  With respect to the Leases:  (a) the Rent Roll certified by Borrower and dated on or about the Closing Date is true, complete and correct and the Property is not subject to Leases other than the Leases identified on such Rent Roll; (b) Borrower has delivered to Lender complete and accurate copies of all Leases and no verbal or written agreements exist which terminate, modify or supplement the Leases, except as otherwise disclosed to Lender in writing and acknowledged by Lender; (c) each Lease, by its terms, is subordinate to the lien of the Security Instrument or the subject of a separate subordination agreement subordinating the Lease to the lien of the Security Instrument; (d) Borrower is the sole owner of the entire lessor's interest in the Leases and has not assigned, pledged or otherwise transferred the Rents reserved in the Leases (except to Lender); (e) all of the Leases are bona fide, arm's-length agreements with tenants unrelated to Borrower; (f) none of the Rents has been collected for more than one (1) month  in  advance (and for such purpose, a security deposit shall not be  deemed  Rent collected in advance); (g) all security deposits reflected on the Rent Roll have been collected and are being held by Borrower in the full amount reported on the Rent Roll; (h) all work to be performed by Borrower under each Lease has been performed as required and has been accepted unconditionally by the applicable tenant or alternatively, if any work is not yet complete, Borrower is not in default of its obligations thereunder with respect to such work; (i) no offsets or defenses exist in favor of any tenant to the payment of any portion of the Rents and Borrower has no monetary obligation to any tenant under any Lease; (j) Borrower has not received notice from any tenant challenging the validity or enforceability of any Lease; (k) all payments due from tenants under the Leases are current; (1) no tenant under any Lease is in default thereunder, or  is  a  debtor in  any bankruptcy, reorganization, insolvency or  similar proceeding,  or  has

demonstrated a history of payment problems which suggest financial difficulty; (m) each Lease
contains a right of first refusal to purchase (but no option to purchase or related provision); provided, however, that such right shall not apply to Lender in connection with a foreclosure, deed-in-lieu of foreclosure or any other enforcement action under the Loan Documents, but such right shall apply to subsequent purchasers of the Property from Lender, and no Lease contains any  other  similar  provision  that  is  otherwise  not  subordinate  to  the  lien  of  the  Security
Instrument pursuant to the terms of a subordination agreement delivered in connection with the closing of the Loan; and (n) no brokerage commissions, finders fees or similar payment obligations are due and unpaid by Borrower or any Affiliate of Borrower regarding any Lease which have not been disclosed in writing to Lender and for which adequate amounts have not been set aside in the TI/LC Reserve Account.

8.20.  Management Agreement.   No change in the Property Manager or Property Management Contract has occurred since the date of the most recent information submitted to Lender with respect thereto, other than has been disclosed in writing to Lender.

8.21.   Financial Condition.  Borrower currently is solvent and has received reasonably equivalent value for its granting of the Liens in favor of Lender in connection with the Loan. No change has occurred in the financial condition of Borrower, SPE Equity Owner, Guarantor, or any of their respective constituent equity owners, general partners or managing members which would have a Material Adverse Effect, since the date of the most recent financial statements submitted to Lender with respect to each such party, other than has been disclosed in writing to Lender and acknowledged by Lender in writing.

8.22.   Taxes.  Borrower and SPE Equity Owner have filed all federal, state, county, municipal, and city income tax returns required to have been filed by them and have paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments received by them.   Borrower does not know of any basis for any additional assessment in respect of any such taxes and related liabilities for prior years.

8.23.     No Foreign Person.   Borrower is not a "foreign person" within the meaning of
§1445(f)(3) of the Tax  Code.

8.24.   Federal Regulations.  Borrower is not engaged nor will it engage, principally, or as one of its important activities, in the business of extending credit for the purpose of "purchasing" or "carrying" any "margin stock" within the respective meanings of each of the quoted terms under Regulation U or Regulation G.

8.25.   Investment Company Act; Other Regulations.   Borrower is not an "investment company'' or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940 and the regulations issued thereunder, each as amended. Borrower is not subject to regulations under any federal or state statute or regulation which limits its ability to incur indebtedness.

8.26.    ERISA.    (a)  Borrower  is  not  and  will  not  be  an "employee  benefit  plan,"  as defined  in  §3(3)  of  ERISA,  subject  to Title  I of ERISA,  (b) none  of the assets  of  Borrower constitutes or will constitute "plan  assets" of one or more such plans within the meaning  of 29
C.P.R.  §2510.3-101,  (c)  Borrower  is not  and  will  not  be  a "governmental  plan"  within  the meaning of §3(3) of ERISA, and (d) transactions  by or with Borrower are not and will  not be subject to state statutes regulating investment of, and fiduciary obligations with respect to, governmental plans.

8.27.    No Illegal Activity as Source of Funds.   No portion of the Property has been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity.

8.28.    Compliance    with    Anti-Terrorism,    Embargo,    Sanctions    and    Anti-Money Laundering Laws.  Borrower, SPE Equity Owner, each Guarantor, the Property Manager,  and to the best of Borrower's knowledge, after having made reasonable inquiry (a) each Person owning an  interest  of  20%  or  more  in  Borrower,  SPE  Equity  Owner,  a  Guarantor,  or  the  Property Manager  (if  the  Property  Manager  is ·an  Affiliate  of  Borrower)  and  (b)  each  tenant  at  the Property:  (i) is not currently  identified  on  OFAC  List, and (ii) is not  a Person  with  whom  a citizen  of  the  United  States  is  prohibited  to  engage  in  transactions  by  any  trade  embargo, economic sanction, or other prohibition of United States law, regulation, or Executive  Order of the President of the United States.  Borrower agrees to confirm  this representation  and warranty in writing on an annual basis if requested by Lender to do so.

8.29.    Brokers  and  Financial  Advisors.    Borrower  has  not  dealt  with  any  financial advisor, broker, underwriter, placement agent or finder in connection with the transaction contemplated  by this Loan Agreement  who may be owed a commission  or other compensation which Borrower will not have paid in full as of the Closing Date.

8.30.     Complete  Disclosure;  No  Change  in  Facts  or  Circumstances.     To the  best  of
Borrower's knowledge, (a) Borrower has disclosed to Lender all material facts and has not failed
· to disclose any material fact that could cause any representation  or warranty made herein  to be materially  inaccurate,  incomplete  or misleading  and (b) all information  provided in or supplied with the application  for Loan, or in satisfaction of the terms thereof, remains true, complete  and correct in all material respects, and no adverse change in any condition or fact has occurred  that would make any of such information materially inaccurate, incomplete or misleading.

8.31.    Survival.   The representations  and warranties contained  in this Article 8 survive for so long as the Loan remains payable and any Obligation remains to be performed.

ARTICLE 9
BORROWER  COVENANTS

9.01.    Payment  of  Debt  and  Performance  of  Obligations.    Borrower  shall  fully  and punctually  pay  the  Loan  and  perform  the  Obligations  when  and  as  required  by  the  Loan Documents.   Borrower may not prepay the Loan except in strict accordance with this Loan Agreement.

9.02.     Payment of Taxes and Other Lienable Charges.

(a)       Payment Obligation.   In the event Walgreens  shall not be in compliance with the terms of the Walgreens Lease obligating Walgreens to undertake the payment of Taxes and Other Charges assessed or imposed against the Property, Borrower shall promptly  and fully pay or cause to be paid by their due date all Taxes and Other Charges now or hereafter  assessed or charged against the Property as they become due and payable. Borrower shall promptly  cause to  be  paid  and  discharged  any  Lien  which  may  be  or  become  a  Lien  against  the  Property (including,  without  limitation,  mechanics'  or materialmen's liens).   Except to the extent  sums sufficient  to pay Taxes or Other Charges have been deposited with Lender in accordance  with this Loan Agreement,  Borrower shall furnish to Lender, upon request, evidence  satisfactory  to Lender that all Taxes and Other Charges have been paid and are not delinquent.

(b)       Right to Contest.   In the event Walgreens shall not be in compliance  with the terms of the Walgreens Lease obligating Walgreens to undertake the payment of Taxes  and Other Charges assessed or imposed against the Property, after prior written notice to Lender, Borrower,  at its own expense, may contest by appropriate legal proceeding,  promptly  initiated and conducted in good faith with due diligence, the amount or validity or application in whole or in part of any of the Taxes or Other Charges, provided that: (i) no Event of Default exists; (ii) such proceeding  suspends  the collection of such Taxes or Other Charges and the Property  will not be in danger of being sold for such unpaid Taxes or Other Charges, or Borrower has paid all of such Taxes or Other Charges under protest; (iii) such proceeding is permitted under and is conducted  in accordance  with the provisions of any other instrument  to which Borrower  or the Property is subject and does not constitute a default thereunder; (iv) if Borrower has not paid tl1e disputed  amounts  in  full  under  protest,  Borrower  shall  deposit  with  Lender  cash  (or  other security  as may be approved, in writing, by Lender) in an amount Lender  deems sufficient  to insure  the payment  of  any such  Taxes  or Other  Charges  together  with interest  and  penalties thereon, if any, provided that after a Securitization, one hundred twenty-five percent (125%)  of the contested amount (plus anticipated penalty and interest) shall be deposited with Lender; (v) Borrower  furnishes  to Lender all other items reasonably requested  by Lender; and (vi) upon a final determination  thereof,  Borrower   promptly  pays the amount of any such Taxes  or Other Charges,  together  with  all costs,  interest  and  penalties  which  may  be  payable  in  connection therewith.    Lender may  pay over  any security  held by Lender  pursuant  to this Section  to the claimant  entitled  thereto  at  any  time  when,  in  Lender's   judgment,  the  entitlement  of  such claimant  is  established,  and,  to  the  extent  the  security  posted  by  Borrower "'with Lender  is insufficient to pay the full amount due (including, without limitation, any penalties or interest thereon),  Borrower  shall  be liable  for  the  deficiency.    If Lender  pays  the  deficiency  (which Lender shall not be obligated to do), the amount paid by Lender shall be added to principal, shall bear interest at the Default Rate until paid in full and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

9.03.     Insurance.

(a)       Insurance Required During the Loan Term.   Borrower, at Borrower's expense, shall obtain and maintain, or cause to be obtained and maintained during the tei-m of the Loan such insurance coverage (including, without limitation, type, minimum coverage amount, maximum deductible and acceptable exclusions) for Borrower and the Property as Lender deems reasonably  necessary  considering,  among  other  things,  the  location  and  occupancy  of  the Property and all uses of the Property. Lender reserves the right to periodically review the insurance coverage Lender has required (types, minimum coverage amounts and maximum deductibles) and to increase or otherwise change the required coverage should Lender deem an increase  or  change to  be reasonably necessary under then  existing  circumstances. Without limiting Lender's rights hereunder in any respect, it shall be deemed reasonable for Lender to require no less coverage than the coverage Lender required to be in place on the Closing Date. Subject to the foregoing, Lender shall require the following insurance coverage to be effective during the term of the Loan, coverage amounts and deductibles to be acceptable to Lender:

(i)        Property Insurance. Casualty insurance must be maintained for the Improvements and all Personal Property insuring against any peril now or hereafter included within the classification "all risks of physical loss" and in an amount at all times sufficient to prevent Borrower or Lender from becoming a co-insurer within the terms of the applicable policies but in any event at all times equal to the full replacement cost (as reasonably determined and adjusted from time  to  time  by  Lender)  of  the  Improvements  and  Personal Property (without taking into account any depreciation and exclusive of excavations, footings and foundations, landscaping and paving), without any exclusions for windstorms.  Where any part of the Improvements constitutes a legal non-conforming use or structure under the Requirements of Law, such insurance must include  "Ordinance  of  Law  Coverage,"  with  "Time  Element," "Loss  to the Undamaged Portion of the Building," "Demolition Cost" and "Increased Cost of Construction" endorsements, in the amount of coverage requested by Lender.  The policy must name Lender  as  an  insured  mortgagee  under  a  standard  mortgagee clause. The deductible shall not exceed $10,000.00.

(ii)       Insurance  against Acts  of  Terrorism.    The  insurance  coverage provided under Section 9.03(a) in effect as of the Closing D<1te and during the Loan term must also insure against loss or damage resulting from acts of terrorism or comparable coverage acceptable to  Lender  in  its  discretion.    The  deductible  shall  not  exceed
$10,000.00.

(iii)     Boiler   and  Machinery   Insurance.      Broad   form   boiler   and machinery   insurance   (without   exclusion   for   explosion)   and systems breakdown  coverage must  be  maintained,  covering  all

steam boilers, pipes, turbines, engines or other pressure vessels, electrical machinery, HVAC equipment, refrigeration equipment and other similar mechanical equipment located in, on or about the Property in such amount per accident equal to the full replacement cost thereof (as reasonably determined and adjusted from time to time by Lender) and also providing coverage against loss of occupancy or use arising from any breakdown thereof. The policy must name Lender as an insured under a standard joint loss clause and provide that all proceeds are to be paid to Lender.

(iv)      Flood  Insurance.    Flood  insurance  must  be  maintained  if  any portion of the Improvements is located in an area identified by the Federal Emergency Management Agency or any successor thereto as a 100-year flood zone or special hazard area.  The required coverage amount shall be the maximum allowable per building under the then-current guidelines published by the Federal Emergency Management Agency or any successor thereto.   Such coverage may need to be purchased through excess carriers if the required coverage exceeds the maximum insurance available for the Property under the then-current guidelines published by the Federal Emergency Management Agency or any successor thereto. The policy must name Lender as an insured mortgagee under a standard mortgagee clause.

(v)      Business Interruption.   Business interruption insurance must be maintained  in  an  amount  sufficient  to  provide  the  lost  rental income for the Property for a period of not less than 1 year from the date of Casualty, with a 6 month extended period of indemnity (but a minimum of 18 months with a 6 month extended period of indemnity at all times during which the outstanding principal balance of the Note is greater than $25,000,000.00).  For purposes of this coverage, "rental income" means the sum of (A) the total, then ascertainable Rents payable under the Leases and (B) the total ascertainable amount of all other payments to be received by Borrower from third parties which are the legal obligation of the tenants, reduced to the extent such amounts would not be received because of operating expenses not incurred during the period that any portion of the. Property cannot be occupied as a result of the Casualty. The  policy  must  name  Lender  as  a  loss  payee  and provide that all proceeds are to be paid to Lender.

(vi)      Liability  Insurance.     Commercial  general  liability  insurance coverage must be maintained, covering bodily injury or death and property damage, including all legal liability to the extent insurable

                           and all court costs, legal  fees and expenses, arising out  of, or
                                     connected  with,    the     possession,    use,    leasing,    operation,
                                         maintenance  or  condition  of  the  Property  in   such  amounts 
		
	generally
	required        by         institutional       lenders    for     properties

                        comparable to the Property but in no event for a combined                    
                  single limit  of  less  than  $2,000,000  aggregate  and  $1,000,000                    
                        per  occurrence. In  addition  to  the  required  Commercial  General     
              Liability insurance,  Borrower shall maintain  an Umbrella  and
                                       Excess  Liability Policy for  an amount equal to  a minimum  of
                                              $5,000,000.00. The required coverage must provide for claims to be              
                                    made on an occurrence basis.  The policies must name Lender
                                                as an additional insured.

(vii)   Workers'  Compensation Insurance.    Workers'  compensation insurance must be maintained with respect to all employees of Borrower employed at the Property, in compliance with the laws of the state in which the Property is located.

(viii)   Earthquake Insurance.  If the Property is located in seismic zone 3 or seismic zone 4, as defined by the Federal Emergency Management Agency, earthquake insurance must be maintained in form, amount and with deductibles satisfactory to Lender.

(ix)      Other  Coverage.    Without  limiting  Lender's  rights  under  this Section 9.03(a), Lender may also require Borrower to maintain builder's risk insurance during any period of construction, renovation or alteration of the Improvements, motor vehicles liability insurance in  connection with  all owned or  non-owned motor vehicles used in connection with the management or maintenance of the Property, "dram shop" or similar coverage if alcoholic beverages are sold at the Property, fidelity bond coverage for employees handling Rents and other income from the Property, environmental insurance, sinkhole coverage and other insurance with respect to the Property or on any replacements or substitutions thereof or additions thereto against other insurable hazards or casualties which at the time are commonly insured against in the case of property similarly situated, due regard being given to the height and type of buildings, their construction, location, use and occupancy.

(b)       Qualified Insurers; Lender's Consent.  All insurance must be issued under valid and enforceable policies of insurance acceptable to Lender and issued by one or more domestic primary insurers authorized to issue insurance in the state in which the Property is located.   Each insurer must have a minimum investment grade rating of "A" or better (but a

minimum of "A+ or better" at all times during which the outstanding principal balance of the Loan is $25,000,000.00 or more) from S & P and/or equivalent ratings from one or more Rating Agencies acceptable to Lender.  Lender's  approval of insurance coverage at any time is not a representation or warranty concerning the sufficiency of any coverage or the solvency of any insurer, and Lender shall not be responsible for, nor incur any liability for, the insolvency of the insurer or other failure of the insurer to perform.

(c)       Policy Requirements.  All policies must be for a term of not less than a year and name Lender as a beneficiary of such coverage as provided in this Section 9.03 or otherwise identified by Lender.  Each policy must also contain: (i) an endorsement or provision that permits recovery by Lender notwithstanding the negligent or willful acts or omission of Borrower; (ii) a waiver of subrogation endorsement as to Lender to the extent available at commercially reasonable rates; (iii) a provision that prohibits cancellation or termination before the expiration date, denial of coverage upon renewal, or material modification without at least thirty (30) days prior written notice to Lender in each instance; and (iv) effective waivers by the insurer of all claims for Insurance Premiums against Lender. Borrower shall be permitted to obtain the required insurance coverage under a blanket policy covering the Property and other properties and assets not part of the Property, provided that such blanket policy must specify the portion of the total coverage that is allocated to the Property and any sub-limit in such blanket policy which is applica,ble to the Property and shall otherwise comply in all respects with the requirements of this Section 9.03.  Lender may approve higher deductibles and such other policy modifications that are reasonable under the 'circumstances for such blanket policies.

(d)    Evidence of Insurance.

Borrower must deliver to Lender on or before the Closing Date either (i) the original of each insurance policy required hereunder; (ii) a copy of each original policy certified by the insurance agent to be a true, correct and complete copy of the original; (iii) the insurance binder (Acord Form 25S provided by the insurance carrier) (as well as proof of payment of the premium for the first year); (iv) a certificate of insurance (Acord Fonn 28 provided by the insurance agent or, where form Acord Form 28 is not available, a certificate of insurance confirms the same rights as are confirmed by form Acord Form 28); (v) an original letter from the insurance carrier on the primary layer, signed by an officer of such carrier, attaching the form of insurance policy pursuant to which coverage will be provided (and, if applicable, an original letter from each insurance carrier on the excess layers, signed by an officer of each such carrier, agreeing that it is bound to the form of insurance policy delivered by the primary carrier (i.e., agreeing to "follow form" to the primary carrier); and provided each such letter must (A) set forth the date by which the policy will be delivered to the Lender, which must not be more than sixty (60) days following the Closing Date and (B) include as attachments all mortgagee/loss payee/additional insured endorsements. Evidence of the required coverage for the first year of the Loan (as well as proof of payment of the first year's premium) must be delivered to Lender on or before the Closing Date and thereafter not less than thirty (30) days prior to the expiration date of each policy.

(e)       Lender's  Right  to Obtain  h1surance for  Borrower.    If Borrower  fails to deliver to Lender the evidence of insurance coverage required by this Loan Agreement  and does not cure such deficiency within ten (10) days after Lender's  notice of nondelivery,  an Event of Default shall be deemed to have occurred (without further cure period or notice) and Lender may procure  such  insurance  at Borrower's expense,  without  prejudice  to  Lender's  rights  upon  an Event of Default.   All amounts  advanced by Lender to procure the required insurance  shall be added  to principal,  secured  by the Security  Instrument  and bear  interest  at the Default  Rate. Lender shall not be responsible  for, nor incur any liability for the insolvency  of the insurer  or other failure of the insurer to perform, even though Lender has caused the insurance to be placed with the insurer after Borrower's failure to furnish such insurance.

Notwithstanding  anything  to the contrary contained in this Section  9.03, Borrower  and Lender acknowledge that Walgreens shall maintain insurance for the Property in accordance  with the terms set forth in the Walgreens Lease.  Lender hereby approves the insurance currently maintained  by Walgreens  and acknowledges that same shall constitute full compliance  with the terms  of Section  9.03  of  this  Loan Agreement.    If at any time  during  the term  of  the  Loan Walgreens shall breach any obligation to maintain the insurance or any coverage required  under the Walgreens  Lease, then Borrower shall immediately  obtain the insurance  coverage  required under this Section 9.03 and provide Lender with the evidence of same required under  Section
9.03(d) hereof.

9.04.    Obligations  upon  Condemnation  or  Casualty.  If  the  Property,  or  any  portion thereof, shall be damaged or destroyed by a Casualty or become subject to any Condemnation, the following shall apply:

(a)        Generally.    Borrower  shall  promptly  notify  Lender,  in  writing,  of  any actual  or threatened  Condemnation  or of any Casualty  that damages  or renders  unusable  the Property  or  any  part  thereof  and,  except  as  otherwise  provided  below,  shall  promptly  and diligently   pursue  Borrower's  claim  for  a  Condemnation   award  or  insurance   proceeds,   as applicable.    Borrower  shall  not ·make any  agreement  in lieu of  Condemnation  or accept  any Conde1m1ation award of $250,000  or more without  Lender's  prior written  consent.    Borrower shall  not  accept  any settlement  of insurance  proceeds  of $250,000  or more  with  respect  to a Casualty  without  Lender's prior written  consent.   If requested  by Lender,  Borrower  agrees  to provide copies to Lender of all notices or filings made or received by Borrower  in connection with the Casualty or Condemnation or with respect to collection of the insurance proceeds or Conde1m1ation award,  as  applicable.    Notwithstanding  that  a Casualty  or  Condemnation  has occurred, or that rights to a Condemnation  award or insurance proceeds  are pending,  Borrower shall continue to pay the Loan at the time and in the manner provided in this Loan Agreement.

(b)       Lender  Right  to  Pursue  Claim.     Borrower  hereby  grants  Lender  the authority, at Lender's option, either: (i) to settle and adjust any claim arising with respect to the Casualty  or Conde1m1ation without Borrower's consent, or (ii) to allow Borrower  to settle  and adjust such claim; provided  that, in either case, the insurance proceeds or Condemnation  award, as applicable, is paid directly to Lender.   Borrower hereby appoints Lender its attorney-in-fact

with full power of substitution  (and which shall be deemed to be coupled with an interest  and irrevocable  until  the  Loan is paid  and the Security  Instrument  is  discharged  of record,  with Borrower hereby ratifying all that its said attorney shall do by virtue thereof) to endorse any agreements,  instruments  or drafts received in connection with a Casualty or Condemnation.   If any portion  of the insurance  proceeds  or Condemnation  award,  as applicable,  should  be paid directly to Borrower,  Borrower shall be deemed to hold such amounts in trust for Lender  and shall promptly  remit such amounts to Lender.   If the Property  is sold, through  foreclosure  or otherwise, prior to the receipt of the Condemnation award, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the proceeds of such sale in an amount sufficient to pay the Loan in full.  All expenses incurred by Lender in the settlement and collection of amounts paid with respect to a Casualty or Condemnation   (including,  without  limitation,  reasonable  legal  fees  and  expenses)  shall  be deducted and reimbursed to Lender from the insurance proceeds or Condemnation award, as applicable,  prior  to  any other  application  thereof.   The insurance  proceeds  or Condemnation award paid or payable  on account of a Casualty  or Condemnation,  as applicable (including  all business interruption insurance proceeds paid as a result of such Casualty or Condemnation), less expenses  to  be  reimbursed  to  Lender  hereunder,  is  referred  to  herein  as  the  "Restoration Proceeds."

(c)         Application of Restoration Proceeds; Restoration Obligations. Except as specifically hereafter provided in subsection (d) below,  Lender may, in its sole discretion, either (i) apply the Restoration Proceeds to payment of the Loan, whether or not then due and payable, or (ii) hold and release the Restoration Proceeds to Borrower (A) for the costs of Restoration unde1iaken by Bon·ower in accordance with this Loan Agreement  and (B) to cover any shortfall in Operating Income as a result of such Casualty or Condemnation  that is necessary to pay in full the debt service payments due from Borrower on each Payment Due Date and other Operating Expenses falling due during the period until Restoration  is completed;  provided, however,  that Lender shall have no obligation  to release Restoration  Proceeds to fund amounts contemplated by clause (B) unless (1) Lender is satisfied that Restoration Proceeds are sufficient to pay in full the estimated cost to complete Restoration and (2) all Operating Expenses to be funded with Restoration   Proceeds  are  approved  by  Lender.    If  L nder   applies  Restoration  Proceeds  to payment of the Loan and the Loan is still outstanding, interest will continue to accrue and be due on  the  unpaid  principal  at  the  Applicable  Interest  Rate.    If  Lender  makes  the  Restoration Proceeds available to Borrower for Restoration, Borrower shall diligently pursue Restoration  so as to restore the Property to at least equal value and substantially  the same character as existed immediately  prior  to  such  Casualty  or  Condemnation.    All  plans  and  specifications  for  the Restoration and all contractors, subcontractors and materialmen to be engaged in the Restoration, as well as the contracts under which they have been engaged, shall be subject to Lender's prior review and approval.   Lender may engage, at Borrower's expense,  an independent  engineer  or inspector to assist Lender in its review of the approvals requested of Lender in connection  with the Restoration and to periodically inspect the Restoration in progress and upon substantial completion.

(d)     Condition to Release of Restoration Proceeds for Restoration.    Lender agrees to make the Restoration Proceeds available to Borrower for Restoration as long as: 

(i)       The Restoration Proceeds recovered are less than the outstanding principal balance of the Loan.

(ii)    No Event of Default exists.

(iii)   Borrower  demonstrates  to  Lender's  satisfaction  that  the Restoration Proceeds are sufficient to pay in full the estimated cost to complete Restoration and any shortfalls in Operating Income as a result of such Casualty or Condemnation that are anticipated until Restoration is substantially completed, or, if the Restoration Proceeds are determined by Lender to be insufficient to pay such costs in full, Borrower deposits with Lender, in cash or by a cash equivalent acceptable to Lender, the additional amount estimated by Lender to be necessary to pay the full cost of Restoration ("Restoration Deficiency Deposit").

(iv)      The Casualty or Condemnation has not occurred in the eighteen (18) months prior to the Maturity Date (without taking into consideration any unexercised extension).

(v)       Restoration can be  completed not later than  the earlier  of  (A) twelve (12) months from the date the Casualty or Condemnation occurred, (B) the earliest date by which completion is required under any Major Lease, (C) the earliest date by which completion is required under the Requirements of Law to preserve the right to rebuild the Improvements as they existed prior to the Casualty or Condemnation or (D) the expiration of Borrower's business interruption insurance. 

(vi)      If a Condemnation has occurred, less than 10% of the Land is taken and the land taken is along the perimeter or periphery of the Land, and no portion of the Improvements are taken.

(vii)    If a Casualty has occurred, less than 25% of the total floor area of the  Improvements  is   damaged  or  rendered  unusable  by  the Casualty and Borrower demonstrates to Lender's satisfaction that a reasonable means of access exists to the Property and within the Improvements unaffected by the Casualty.

(viii)   Borrower demonstrates to  Lender's  satisfaction that the  tenants under  Major  Leases  will  continue  occupancy  of  the · Property without  rent  abatement  following  Restoration  and  that,  upon

completion of Restoration, the net cash flow of the Property will be restored to a level sufficient to cover all Operating Expenses  of the Property, including, without limitation, supporting a Debt Service Coverage Ratio at least equal to, or greater than, the greater of (A) the Debt Service Coverage Ratio existing as of the Closing  Date, or (B) the Debt Service  Coverage Ratio  which  existed  as of the date immediately preceding such Casualty or Condemnation.

		
	(ix) 
	The Property and its use after completion of Restoration  will be in compliance with, and permitted under, all Requirements of Law.

(e)       Disbursement  Procedure;  Holdback.   If the Restoration  Proceeds  will be made  available  by  Lender  to Borrower  for Restoration  and the estimated  cost  of Restoration approved by Lender (together with all other amounts then held by Borrower pursuant to this Subsection (e)) is less than $250,000, Lender shall disburse the entire amount of the Restoration Proceeds  to  Borrower,  and  Borrower  hereby  covenants  and  agrees  to  use  the  Restoration Proceeds  solely  for  Restoration  performed  in  accordance  with  this  Loan  Agreement.     If, however, the estimated cost of Restoration approved by Lender (together with all other amounts then held by Borrower pursuant to this Subsection (e)) is more than $250,000, Lender may retain the  Restoration   Proceeds   in   a  non-interest   bearing   escrow   account   and   make   periodic disbursements to Borrower as follows:

(i)     Disbursements for Restoration.

(A)      Lender will disburse Restoration Proceeds for the costs of Restoration   to,  or  as  directed  by,  Borrower   from  time  to  time  during  the  course   of  the Restoration,  upon  receipt  of evidence  reasonably  satisfactory  to Lender  that  (1)  all materials installed and work and labor performed in connection with the Restoration have been paid in full (except to the extent that they are to be paid out of the requested  disbursement),  and (2) there exist  no  notices  of pendency, stop orders, mechanics' or materialmen's liens or notices of intention to file same, or any other Liens of any nature whatsoever on the Property arising out of the Restoration which have not either been fully bonded and discharged of record or, in the alternative,  fully insured  to Lender's  reasonable  satisfaction  by the title company  insuring  the Lien of the Security Instrument.

  (B)     Lender may limit disbursements  to not more than one (1) per month.
(C)      Lender  may  hold-back  from  each requested  disbursement an amount equal to the greater of (1) ten percent (10%) of the requested disbursement  or (2) the amount  which  Borrower  is  permitted  to  withhold  under  its  contract  with  the  contractor  or supplier to be paid with the proceeds of such disbursement (either a "Restoration Holdback"). Amounts  held  as  the  Restoration  Holdback  shall  be  disbursed  once:  (1)  Lender  receives satisfactory   evidence   that   Restoration   has  been   fully   completed   in  accordance   with   all Requirements  of Law; (2) Lender receives satisfactory  evidence that all Restoration  costs have

been  paid  in  full  or  will be  fully  paid  from  the  remaining Restoration  Proceeds  and  the Restoration Holdback; and (3) Lender receives, at Lender's option, a search of title to the Property, effective as of the date on which the Restoration Holdback is to be disbursed, showing no Liens other than the Permitted Encumbrances or an endorsement to its Title Insurance Policy which updates the effective date of such policy to the date on which the Restoration Holdback is to  be  disbursed  and  which shows  no  Liens since the  date  of  recordation  of  the  Security Instrument (other than the Permitted Encumbrances).

  (D)      Notwithstanding subsection (C) above, Lender may release from the Restoration Holdback payments. to a contractor or supplier if: (1) Lender receives satisfactory  evidence  that  such  contractor  has  satisfactorily  completed  its  contract  with Borrower; (2) such contractor or supplier delivers to Lender an acceptable written waiver of its mechanic's lien, in recordable form; and (3) Borrower provides written consent from the surety company, if  any, which  has  issued  a  payment or  performance bond  with  respect  to  such contractor or supplier.

(ii)      Disbursements for Shortfalls in Operating Income.  Provided that Lender determines that the Restoration Proceeds are sufficient to pay in full the estimated cost to complete Restoration, Lender will disburse Restoration Proceeds not reserved for Restoration to pay the shortfall in Operating Income necessary to pay (A) first, the debt service payments due from Borrower on each Payment Due Date falling due from the date of the Casualty or Condemnation through the date on which Restoration is substantially completed and  (B)  then,  any  Operating  Expenses  approved  by  Lender. Lender may require satisfactory evidence that Operating Expenses to be paid have been incurred and may issue payments directly to the Person entitled to the payment claimed as an Operating Expense.

(iii)     Restoration  Proceeds  Deemed  Insufficient.      If,  in   Lender's judgment, at any time during Restoration, the undisbursed portion of the Restoration Proceeds shall not be sufficient to pay the costs remaining for Restoration to be completed or to pay any shortfall in Operating Income needed to pay in full Borrower's debt service payments on the Loan and Operating Expenses anticipated to be incurred during the period of Restoration, Borrower shall deposit the deficiency with Lender, in cash or by a cash equivalent acceptable to Lender (also called a "Restoration Deficiency Deposit"), within ten (10) days after Lender's notice of such deficiency,  and  no   further  disbursement   of   the  Restoration Proceeds will be made until such funds are deposited.   Amounts held by Lender as the Restoration Deficiency Deposit shall be disbursed in accordance with this Section 9.04.

(iv)      Consequence of Event of Default.   Lender shall not be obligated to disburse Restoration Proceeds or amounts from the Restoration Holdback  when  an  Event  of  Default  exists,   and  upon   the occurrence of an Event of Default, any undisbursed portion of the Restoration    Proceeds   (including   the   Restoration   Deficiency Deposit and the Restoration Holdback) may, at Lender's option, be applied against the Loan, whether or not then due or accelerated, in such order and manner as Lender determines.

(v)       Surplus Restoration Proceeds After Restoration Completion.  Any Restoration Proceeds remaining after full payment of Restoration costs and unpaid expenses due to Lender for which Lender is permitted reimbursement under this Section 9.04 shall be released to Borrower provided no Event of Default exists, and Borrower delivers evidence satisfactory to Lender that (A) Restoration has been fully completed in accordance with all Requirements of Law and (B) the Property is free and clear of all Liens which may be asserted with respect to the Restoration.

Notwithstanding anything to the contrary contained in this Section 9.04, Borrower and Lender acknowledge that in the event of an inconsistency between the terms herein and the terms of the Walgreens Lease regarding the subject matters of this Section 9.04, the Walgreens Lease, to the extent in effect, shall govern and control.

9.05.   Inspections and Right of Entry.   Lender and its agents may enter the Property upon prior notice to Borrower (notice to be given unless an Event of Default or an emergency exists, as determined by Lender in good faith) to inspect the Property and Borrower's books and records relating to the Property.  In making such entry and inspection, Lender agrees to use reasonable efforts to minimize disturbance to Borrower and tenants of the Property.  Lender and its agents shall have access, at all reasonable times, to the Property, including, without limitation, all contracts, plans and specifications, permits, licenses and approvals required or obtained in connection with the Property.

9.06.     Leases and Rents.

(a)      Right to Enter into New Leases.  Borrower may enter into new Leases for space at the Property and renew or extend existing Leases without Lender's prior written consent provided that each such Lease: (i) is not a Major Lease; (ii) provides for rental rates and terms comparable to existing local market rates and terms (taking into account the type and quality of the tenant) as of the date such Lease is executed (unless in the case of a renewal or extension, the rent payable during such renewal term, or a formula or other method to compute such rent, has been specified in the original Lease); (iii) is an arms-length transaction with a tenant that is not an Affiliate of Borrower; (iv) will not have a Material Adverse Effect on the value of the Property taken as a whole; (v) is subordinate to the Security Instrument (other than with respect to residential leases) or (vi) is extended pursuant to the Walgreens Lease.  All proposed Leases

that  do  not  satisfy  the  requirements  set  forth  in  this  Section  require  Lender's  prior  written approval at Borrower's expense (including reasonable legal fees and expenses).   Borrower  shall promptly deliver to Lender a copy of each Lease (other than a residential lease) entered into after the Closing Date, together with written certification from a Responsible  Officer which confirms that (x) the copy delivered is a true, complete and correct copy of such Lease and (y) Borrower has satisfied  all conditi6ns of this Section. Lender's  acceptance of Borrower's certification  or a copy of any Lease shall not be deemed a waiver of the requirements of this Section if the Lease is not in compliance herewith.

(b)       Leasing Decisions.   Provided  no Event of Default  exists, so long  as the Lease is not a Major Lease (or as a result of any of the following  actions to be taken  would become  a Major  Lease)  and except  as otherwise  provided  in this Subsection,  Borrower  may, without  Lender's  prior written consent: (i) amend or supplement  any Lease or waive  any term thereof (including, without limitation, shortening the lease term, reducing rents, granting rent abatements,  or accepting  a surrender  of all or any portion  of the leased  space); (ii)  cancel or terminate any Lease; (iii) consent to a tenant's  assignment of its Lease or subleasing of space; or (iv)  amend,  supplement,  waive  or  terminate  any  Lease  Guaranty;  provided  that  none  of  the foregoing  actions (taking into account the planned  alternative  use of the affected  space  in the case of termination,  rent reduction, surrender of space or shortening of term) will have a Material Adverse Effect on the value of the Property taken as a whole and such Lease, as amended, supplemented  or waived, is otherwise ill compliance  with the requirements  of Section  9.06(a) hereof.    Termination  of  a Lease  (other  than a Major  Lease)  with  a tenant  who  is  in  default beyond applicable notice and grace/cure periods shall not be considered an action which has a Material Adverse Effect on the value of the Property taken as a whole.  Any action with respect to  any  Lease  that  does  not  satisfy  the  requirements  set  forth in  this  Section  9.06  requires Lender's  prior  written   approval   at  Borrower's  expense  (including   reasonable   legal   fees). Borrower  shall  promptly  deliver  to  Lender a copy of  all instruments  documenting  the  action taken, together with written certification from a Responsible Officer that (x) the copies delivered are true, complete  and correct copies of the materials represented thereby and (y) Borrower  has satisfied all conditions of this Section 9.06. Lender's  acceptance of Borrower's certification  or a copy of such Lease materials shall not be deemed a waiver of the requirements  of this Section
9.06 if the action taken is not in compliance herewith.

(c)        Observance of Lessor Obligations. Borrower (i) shall observe and perform all obligations  imposed upon the lessor under the Leases and shall not do or permit to be done anything  to impair  the value of any of the Leases as security for the Loan; (ii) upon  Lender's request, shall promptly send copies to Lender of all notices of default which Borrower shall send or receive (or may have sent or received) under any non-residential Lease; (iii) shall enforce in a commercially  reasonable manner all of the material terms, covenants and conditions contained in the Leases to be observed or performed  by the tenant; (iv) shall not collect any Rents more than one  (1) month  in  advance  (and  for  this purpose  a security  deposit  shall  not be deemed  rent collected in advance); and (v) shall not execute any assignment or pledge of the lessor's interest in any of the Leases or the Rents (other than in connection with the Loan).

9.07.   Use of Property.   Borrower shall not allow changes in the use of the Property without Lender's prior written consent.   Borrower shall not initiate, join in, or consent to any change in any private restrictive covenant or zoning or land use ordinance limiting or defining the uses which may be made of the Property.  If use of all or any portion of the Property is or shall become a nonconforming use, Borrower will not cause or permit the nonconforming use to be discontinued or the nonconforming portion of the Property to be abandoned without Lender's prior written consent.

9.08.   Maintenance of Property.  In the event Walgreens shall not be in compliance with the terms of the Walgreens Lease obligating Walgreens to undertake the following obligations, Borrower shall maintain the Property in a good and safe condition and repair.  No portion of the Property shall be removed, demolished or materially altered (except for normal repair or replacement) without Lender's prior written consent.  Borrower shall promptly repair or replace any portion of the Property which may become damaged, worn or dilapidated.

9.09.   Waste.  In the event Walgreens shall not be in compliance with the terms of the Walgreens Lease obligating Walgreens to undertake the following obligations,  Borrower shall not commit or suffer any material, physical waste of the Property or do or permit to be done thereon anything that may in any way impair the value of the Property or invalidate the insurance coverage required hereunder to be maintained by Borrower. Borrower will not, without Lender's prior written consent, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Property, regardless of the  depth thereof or the method of mining or extraction thereof.

9.10.    Compliance with Laws.

(a)       Obligation to Perform. Borrower shall promptly and materially comply with all Requirements of Law now or hereafter affecting the Property.   Borrower shall notify Lender promptly of Borrower's knowledge or receipt of any notice related to a material violation of any Requirements of Law or of the commencement of any proceedings or investigations which relate to compliance with Requirements of Law.   At Lender's request, Borrower shall provide Lender with copies of all notices, reports or other documents relating to any litigation or governmental investigation relating to Borrower or the Property.

(b)       Right to Contest.  After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the Requirements of Law affecting the Property or alleged violation thereof, provided that: (i) no Event of Default exists; (ii) such proceeding shall be permitted under and be conducted in accordance with the Requirements of Law; (iii) the Property will not be in danger of being sold, forfeited, terminated, cancelled or lost; (iv) non-compliance with such Requirement of Law shall not impose any civil, criminal or environmental liability on Lender or Borrower; (v) Borrower deposits with Lender cash (or other security acceptable to Lender) in such amount as Lender deems sufficient to cover loss or damage that may result from Borrower's failure to prevail in such contest, provided that after a Securitization, one hundred twenty-five percent (125%) of the amount estimated by Lender is deposited; (vi) Borrower

furnishes to Lender all other items reasonably requested by Lender; and (vii) upon a final determination thereof, Borrower promptly complies with the obligations determined to be applicable.

9.11.     Financial Reports, Books and Records.

(a)       Delivery of Financial Statements.   Borrower shall keep adequate books and records of account with respect to its financial condition and the operation of the Property, in accordance with GAAP consistently applied (or such other method which is reasonably acceptable to Lender; Lender acknowledges the financial statements received for Guarantors and Borrower's Affiliates in co1111ection with Closing are in a form reasonably acceptable to Lender), and shall furnish the following to Lender, each prepared in such detail as reasonably required by Lender and certified by a Responsible Officer to be true, complete and correct:

(i)        as soon as available, but in any event within thirty (30) days after the end of each fiscal quarter, a quarterly Rent Roll providing the required information as of the end of such fiscal quarter;

(ii)       as soon as available, but in any event within thirty (30) days after the end of each fiscal quarter, a quarterly operating· statement for the Property detailing the operating income received, operating expenses    incurred,   the    cost    of    all    Immediate    Repairs, Replacements    and     Tenant     Improvements     and     Leasing Commissions performed or paid during such quarter, and the Debt Service Coverage Ratio as of the end of such fiscal quarter;

		
	(iii) 
	as soon as available, but in any event within ninety (90) days after the  close of  Borrower's fiscal  year,  (A)  an  a1111ual   Rent  Roll, presented on an a1111ual  basis consistent with the quarterly Rent Rolls described above; (B) an a1111ual  operating statement for the Property presented on an annual basis consistent with the quarterly operating statements described above; (C) an a1111ual balance sheet and profit and loss statement for Borrower; and (D) a statement of change  of   financial  position   of   Borrower,   setting   forth   in comparative form the figures for the previous fiscal year;

(iv)      as soon as available, but in any event at least thirty (30) days prior to the start of each calendar year, an annual operating budget for the Property presented on a monthly basis consistent with the information required in the quarterly operating statement described above which budget shall be subject to Lender's approval (each such budget as approved, the "Approved Budget");

(v)       upon Lender's request, monthly Rent Roll and operating statements for the Property; and

(vi)           such  other  financial  information  or  property  management information  (including,  without  limitation,  copies  of  Borrower's state and federal tax returns, if applicable, information on tenants under   Leases  to  the  extent   such  information   is   available   to Borrower, copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained,   and  an  accounting   of  security   deposits)   as  may reasonably be required by Lender from time to time.

(b)     Lender  Audit Rights.   Lender  and its agents have  the right, upon  prior written notice to Borrower (notice to be given unless an Event of Default exists), to examine the records, books and other papers which reflect upon Borrower's financial condition or pertain to the income,  expense  and management  of the Property  and to make  copies  and abstracts  from such materials.  Lender  also shall have the right, from time to time (but, in the absence  of an Event of Default existing, not more than annually) and upon prior notice to Borrower (notice to be given unless an Event of Default exists), to have an independent  audit conducted  of any of· Borrower's  financial  information. Lender  shall  pay  the  cost  of  such  audit  unless  Lender performed the audit following the occurrence of an Event of Default or if the results of Lender's audit  disclose  an  error  by  more  than  ten  percent  (10%),  in  which  case  (and  in  addition  to Lender's  other remedies)  Borrower shall pay the cost incurred by Lender with respect  to such audit upon Lender's demand.   Upon Borrower's failure to pay such amounts, and in addition  to Lender's  remedies  for  Borrower's  failure  to  perform,  the  unpaid  amounts  shall  be  added  to principal, shall bear interest at the Default Rate until paid in full, and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

(c)       Financial  Reports  From  Guarantors  and  SPE  Equity  Owner.    Borrower shall cause each Guarantor and, at Lender's request, the SPE Equity Owner, to provide to Lender (i) within ninety (90) days after the close of such party's fiscal year, such party's balance sheet and profit and loss statement (or if such party is an individual, within ninety (90) days after the close  of  each  calendar  year,  such  party's  personal  financial  statements)  in  form  reasonably satisfactory  to Lender  and certified by such party to be accurate  and complete;  and (ii) such additional financial information  as Lender may reasonably require from time to time and in such detail  as  reasonably  required  by  Lender,  which  shall  not  include  federal  or state  tax  return; provided, however, that (A) no Event of Default shall have occurred and be continuing and (B) Guarantor, within ten (10) business days following written request by Lender therefore, delivers a  certified  statement  indicating  there  has  been  no  material  adverse  change  in  Guarantor's financial condition  as of the Closing Date, the financial reporting  requirements  set forth above with respect to Guarantor shall be waived.

(d)       Reporting  Subsequent  to Securitization.   Notwithstanding  the foregoing, after a Securitization,  Borrower  shall only be required  to furnish  the following  to Lender: (i) copies of all financial information provided to Borrower by Walgreens;  and (ii) upon  Lender's request, confirmation  whether Walgreens is open for business  at the Property  and is paying all Operating Expenses relating to the Property.

9.12.    Performance  of Other  Agreements.    Borrower shall  observe  and  perform in  a timely manner each and every obligation to be observed or performed by Borrower pursuant  to the terms of any agreement or recorded instrument affecting or pertaining to the Property or used in connection with the operation of the Property (including, without limitation, the Operating Agreements).   Without limiting the foregoing, Borrower shall (a) give prompt notice to Lender of any  notice received  by Borrower with  respect  to any of the Operating  Agreements  which alleges a default or nonperformance  by Borrower thereunder,  together with a complete  copy of any such notice; (b) enforce, short of termination,  performance  of the Operating Agreements  to be performed or observed, and (c) not terminate or amend, or waive compliance with, any of the Operating  Agreements  without Lender's  prior written  consent,  except as may be (i) permitted pursuant to the respective terms thereof or (ii) absent the existence of an Event of Default, done in the ordinary course of business.  If the absence of an Operating Agreement that has terminated will have a Material Adverse Effect on the value of the Property, Borrower agrees to enter into a new Operating  Agreement  in replacement  of the terminated  Operating  Agreement,  containing terms and conditions  no less favorable to Borrower than the terminated  Operating  Agreement. Borrower shall notify Lender if Borrower does not replace the terminated Operating Agreement.

9.13.    Existence;  Change of Name;  Location  as a Registered  Organization.   Borrower shall continuously  maintain (a) its existence and shall not dissolve or permit its dissolution,  and (b) its rights and franchises to do business in the state where the Property is located.   Borrower shall not change Borrower's name, legal entity, or its location as a registered organization within the meaning of the UCC, without notifying Lender of such change in writing at least thirty (30) days prior to its effective date.  The notification requirements set forth in this Section 9.13 are in addition to, and not in limitation of, the requirements  of Article 7.  Bon-ower shall pay all costs and  expenses  incuned   by  Lender  (including,   without  limitation,   reasonable  legal  fees)  in connection with any change described herein.

9.14.     Property Management.

(a)       Borrower shall cause the Property Manager  to manage the Property  in a commercially  reasonable manner.   Borrower shall not remove or replace the Property Manager (which, with respect to a Property Manager which is an Affiliate of Borrower, shall be deemed to occur upon a change of Control of the Property Manager) or modify or waive any material terms
of the Property Management Contract without Lender's  prior written consent and, if requested by Lender, a Rating Confirmation.  Upon replacement of the Property Manager, Borrower shall, and shall cause the new manager of the Property to, execute an Assignment of Property Management Contract  in  form  and substance  similar  to the Assignment  of Property  Management  Contract executed  by the Property  Manager.   Borrower shall  comply  with all obligations  of Borrower under the Assignment of Property Management Contract.  The property management fee and all other  fees  payable  under  the  Property  Management  Contract  shall  not  exceed  3%  of  gross revenues.

(b)       Termination  of Property Manager.   Following the occurrence of an Event of Default,  Borrower agrees, that, Lender may deliver written notice to Borrower and Property

Manager  terminating  the  Property  Management  Contract,  which  notice  shall  specify  in reasonable detail the grounds for Lender's determination.  If Lender reasonably determines that the conditions specified in Lender's notice are not remedied to Lender's reasonable satisfaction by Borrower or Property Manager within thirty (30) days from receipt of such notice or if Borrower or Property Manager has failed to diligently undertake correcting such conditions within such thirty (30) day period. Lender may direct Borrower to terminate the Property Management Contract and to replace Property Manager with a management company acceptable to Lender.

9.15.   ERISA.   Borrower shall not engage in any transaction which would cause any obligation or action taken or to be taken hereunder by Borrower (or the exercise by Lender of any of its rights under any of the Loan Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA. Borrower agrees to deliver to Lender such certifications or other evidence throughout the term of the Loan as requested by Lender in its  sole discretion to confirm compliance with Borrower's  obligations under  this Section 9.15 or to confirm that Borrower's representations and warranties regarding ERISA remain true.

9.16.  Compliance  with  Anti-Terrorism,  Embargo,  Sanctions  and  Anti-Money Laundering Laws.   Borrower shall comply with all Requirements of Law relating to money laundering, anti-terrorism, trade embargoes and economic sanctions, now or hereafter in effect. Without limiting the foregoing, Borrower shall not take any action, or permit any action to be taken, that would cause Borrower's representations and warranties in Section 8.28 of this Loan Agreement to become untrue or inaccurate at any time during the term of the Loan.  Borrower shall notify Lender promptly of Borrower's actual knowledge that the representations and warranties in Section 8.28 of this Loan Agreement may no longer be accurate or that any other violation of the foregoing Requirements of Law has occurred or is being investigated by Governmental Authorities.  In connection with such an event, Borrower shall comply with all Requirements of  Law and directives of  Governmental Authorities and, at Lender's  request, provide to Lender copies of all notices, reports and other communications exchanged with, or received from, Governmental Authorities relating to such event.  Borrower shall also reimburse Lender for any expense incurred by Lender in evaluating the effect of such an event on the Loan and Lender's  interest in the collateral for the Loan, in obtaining any necessary license from Governmental Authorities as may be necessary for Lender to enforce its rights under the Loan Documents, and in complying with all Requirements of Law applicable to Lender as the result of the existence of such an event and for any penalties or fines imposed upon Lender as a result thereof.                                                                                                              ·

ARTICLE 10
NO TRANSFERS OR ENCUMBRANCES;  DUE ON SALE

10.01. Prohibition Against Transfers. Borrower shall not permit any Transfer to be undertaken or cause any Transfer to occur other than a Permitted Transfer.  Any Transfer made in violation of this Loan Agreement shall be void.

10.02. Lender Approval.   Lender's decision to approve any Transfer proposed by Borrower shall be made in Lender's sole discretion and Lender shall not be obligated to approve any Transfer.   Borrower agrees to supply all information Lender may request to evaluate a Transfer,  including,  without   limitation,  information  regarding  the  proposed  transferee's ownership structure, financial condition and management experience for comparable properties. Borrower acknowledges that Lender may impose conditions to its approval of a Transfer, including, without limitation, (a) no Event ofDefault, or an event which with the giving of notice or lapse of time or both could become an Event of Default, has occurred and is continuing, (b) approval of the proposed transferee's ownership structure, financial condition and management experience for comparable properties, (c) payment of an assumption fee (i) equal to one half of one percent (0.5%) of the outstanding principal balance of the Loan for the first such Transfer and (ii) equal to one percent (1%) of the outstanding principal balance of the Loan for each subsequent transfer, (d) approving substitute guarantors, (e) assumption in writing (acceptable to Lender in its sole discretion) by the transferee and a guarantor (which guarantor must be acceptable to Lender in its sole discretion) of all obligations of the transferor and Guarantor under the Loan Documents and execution and delivery of such other documentation as may be required by Lender and the Rating Agencies, (f) delivery of a new substantive consolidation opinion, a tax opinion and other applicable opinions as required by Lender and the  Rating Agencies, (g) adjusting amounts required for the Reserve Accounts, and (h) obtaining Rating Confirmations if a Securitization has occurred. Borrower agrees to pay all of Lender's expenses incurred  in  connection  with  reviewing  and  documenting  a  Transfer  (including,  without limitation, the costs of obtaining Rating Confirmations if required), which amounts must be paid by Borrower whether or not the proposed Transfer is approved. Upon Borrower's failure to pay such amounts, and in addition to Lender's remedies for Borrower's failure to perform, the unpaid amounts shall be added to principal, shall bear interest at the Default Rate until paid in full, and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

10.03.  Borrower Right to Partial Defeasance and Release for Allocated Maximum Loan
Amount.

(a)     Right to Release.  After the Lock-out Period Expiration Date, Borrower shall have the right, from time to time, to partially defease the Loan and obtain a partial release
 ("Partial Release") of a Release Property from the Security Instrument, Assignment of Leases
and Rents and related UCC financing statements upon satisfaction of the conditions to a Release set forth in Section 2.05(b).  Borrower must provide not less than thirty (30) days prior written notice to Lender requesting a Partial Release and identifying the Release Property and date upon which it desires to have the Release Property released ("Partial Release Date").   Lender's agreement to a Partial Release shall be subject to the following conditions, which must be satisfied to Lender's reasonable satisfaction:

(i)        No Event of Default shall have occurred and be continuing at the time Borrower requests a Partial Release or on the Partial Release Date.

(ii)       On or before the Partial Release Date, Borrower shall arrange to partially defease the Loan, in accordance with Section 2.05(b), in an amount equal to one hundred twenty-five percent (125%) of the Partial Release Price allocated to the Release Property under this Loan Agreement.

(iii)     As of the Partial Release Date, and after giving effect to the Partial Release to occur on such date the Loan to Value Ratio for the remaining Property is no more than eighty percent (80%), as determined by Lender in accordance with Lender's then standard and customary underwriting criteria and requirements for similarly situated properties and loans.

(iv)      Borrower  has  delivered  to   Lender  forms   of   all  documents necessary to release the Release Property from the liens created by the Security Instrument, Assignment of Rents and Leases and related  UCC  financing  statements,  each  in  appropriate  form  required by the state in which the Release Property is located and
otherwise satisfactory to Lender in all respects.

		
	(v)    Borrower has delivered a Compliance Certificate along with a certificate
	from   a   Responsible   Officer   certifying   that   the requirements set forth in this Section 10.03 have been satisfied in all material respects.

(vi)      Borrower has paid all amounts then due and unpaid under the Loan Documents through (and including) amounts due on the Release Date and in connection with the Partial Release.

(vii)    As of the Partial Release Date, and, after giving effect to the Partial Release to occur on such date, the Debt Service Coverage Ratio for the remaining Property is at least 1.10:1.00, as determined by Lender.

(viii)    Lender shall have received a copy of a deed conveying all of the Borrower's right, title and interest in and to the Release Property to an entity other than Borrower and any SPE Equity Owner and a letter from Borrower countersigned by a title insurance company acknowledging receipt of such deed and agreeing to record such deed in the real estate records of the appropriate recording office in which the Release Property is located.

(b)       Reimbursement of  Lender Expenses.    Borrower  agrees  to  pay  all  of Lender's expenses incurred in connection with reviewing and documenting such Partial Release (including,  without  limitation,  the  costs  of  obtaining  Rating  Confirmations  if  required  by

Lender), which amounts must be paid by Borrower whether or not the proposed Partial Release is approved or executed.  Upon Borrower' s failure to pay such amounts, and in addition to Lender's remedies for Borrower's failure to perform, the unpaid amounts shall be added to principal, shall bear interest at the Default Rate until paid in full and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

(c)       Liens of Security Instrument Otherwise Unaffected.  No Partial Release granted by  Lender shall, in  any way, impair  or  affect the lien  or  priority  of  the  Security Instrument relating to the portion of the Property not included in the Partial Release or improve the position of any subordinate lienholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by Lender for such Partial Release.  The Security Instrument shall continue as a Lien and security interest on the portion of the Property not included in a Partial Release.

10.04.  Other Releases of the Mortgaged Property.  In addition to the rights granted to Borrower under Section 10.03 with respect to the Release Properties, Lender may release any other portion of the Property for such consideration and upon such conditions as Lender may require without, as to the remainder of the Property, in any way impairing or affecting the Lien or priority of the Security Instrument or improving the position of any subordinate lienholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by Lender for such release, and Lender may accept by assignment, pledge or otherwise any other property in place thereof as Lender may require without being accountable for so doing to any other lienholder.  Notwithstanding anything to the contrary herein, Borrower shall have no right to request and Lender shall have no obligation to grant its consent to any release pursuant this Section 10.04.

10.05. OFAC Compliance; Substantive Consolidation Opinion.     Notwithstanding anything to the contrary contained in this Article 10 (but without any Transfer deemed permitted solely by this Section 10.05), (a) no transfer (whether or not such transfer shall constitute a Transfer) shall be made to any Person on the OFAC List and (b) in the event any transfer (whether or not such transfer shall constitute a Transfer) results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in Borrower or any SPE Equity Owner (if such  Person  has  not  owned  at least  forty-nine percent (49%) of  the  ownership interest  in Borrower or any SPE Equity Owner, as applicable, prior to such transfer), Borrower shall, prior to such transfer, deliver a new substantive consolidation opinion letter with respect to the new equity owners which is acceptable in all respects to Lender and to the Rating Agencies if a Securitization has occurred.

ARTICLE 11
EVENTS OF DEFAULT; REMEDIES

11.01.  Events of Default.  The occurrence of any one or more of the following events shall, at Lender's option, constitute an "Event of Default" hereunder:

(a)     If any payment of principal and interest (or interest if the Loan is interest-only) is not paid in full on or before the fifth (5th) day from and including the Payment Due Date

on which such payment is due (e.g., if the Payment Due Date is the 1st day of month, an Event of
Default occurs if the payment is not received on or before the fifth (5th) day of the month);

(b)       If any monthly payment required to be made to a Reserve Account  is not paid in full on or before the fifth (5th) day from and including the Payment Due Date on  which such payment is due;

(c)        If  unpaid  principal,  accrued  but  unpaid  interest  and  all  other  amounts outstanding under the Loan Documents are not paid in full on or before the Maturity Date;

(d)     If an "Event  of Default"  as that  term is defined  under  any  other  Loan
Document has occurred;

(e)     If the Prohibited Prepayment Fee is not paid in full when required;

(f)        If any representation  or warranty made by Borrower,  SPE Equity Owner or any Guarantor herein, in the Guaranty, in the Environmental  Indemnity or in any other Loan Document,  or in  any certificate,  report,  financial  statement  or other  instrument  or  document furnished  to Lender in connection herewith or hereafter,  or in connection  with any request  for consent  by  Lender  made  during the term  of the  Loan shall have  been known  by the  Person making it to be false or misleading in any material respect as of the date made;

(g)       If  Borrower,  SPE  Equity  Owner  or  any  Guarantor  shall  (i)  make  an assignment for the benefit of creditors; (ii) generally not be paying its debts as they become due; or (iii) admit in writing its inability to pay its debts as they become due;

(h)       If (i) Borrower, SPE Equity Owner or any Guarantor shall commence  any case, proceeding or other action under any existing or future law of any jurisdiction, domestic or foreign,  relating to bankruptcy,  insolvency,  reorganization,  conservatorship  or relief of debtors (A) seeking  to have an order for relief entered with respect to it, or seeking  to adjudicate  it a bankrupt   or   insolvent,   or   seeking   reorganization,    arrangement,   adjustment,   winding-up, liquidation,  dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment  of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial  part of its assets; or (ii) there  shall be commenced  against  Borrower,  SPE Equity Owner or any Guarantor any case, proceeding  or other action of a nature referred  to in clause (i) above by any party other than Lender which (A) results in the entry of an order for relief  or any  such  adjudication  or appointment,  or (B) remains  undismissed,  undischarged  or unbonded  for a period of ninety (90) days; or (iii) there shall be commenced  against Borrower, SPE Equity Owner or any Guarantor any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of any order for any such relief which shall not have been vacated, discharged,  or stayed or bonded pending appeal within ninety (90) days from the entry thereof;  or  (iv)  Borrower,  SPE  Equity  Owner  or  any  Guarantor  shall  take  any  action  in

furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
            
  (i)    If any Guarantor repudiates or revokes the Guaranty or Environmental Indemnity;

(j)       If any judgment for monetary damages is entered against Borrower, SPE Equity Owner or any Guarantor which, (i) in Lender's sole judgment, has a Material Adverse Effect and (ii) (A) is not covered to Lender's reasonable satisfaction by collectible insurance proceeds, or (B) Borrower does not fully satisfy within ten (10) business days after it is entered;

(k)       If  Borrower or SPE Equity Owner violates or fails to comply with any provision of Article 7 of this Loan Agreement (captioned:  Single Purpose Entity Requirements); provided, however, that such violation or failure shall not constitute an Event of Default if (i) such violation· or failure is inadvertent, immaterial and non-recurring and (ii) such violation or failure is curable, Borrower shall promptly cure such breach within thirty (30) days;

(1)          If  Borrower  materially  violates  or  fails  to  comply  with  any  of  the provisions of Section 9.03 (captioned: Insurance), Section9.06 (captioned: Leases and Rents), or Section 9.13 (captioned: Existence, Change of Name or Location as a Registered Organization);

(m)     If  a  Transfer  (other  than  a  Permitted  Transfer)  shall  occur  without
Lender's prior written consent or in violation of the terms of Lender's consent;

(n)       If  Borrower  abandons  or  ceases  work  on   any  Immediate  Repair, Replacement or Tenant Improvement for a period of more than twenty (20) consecutive days, unless such cessation results from causes beyond the reasonable control of Borrower and Borrower is diligently pursuing reinstitution of such work;

(o)       If a Lien other than a Permitted Encumbrance is filed against the Property, unless such Lien is promptly contested in good faith by Borrower as permitted in accordance with Section 9.02(b);

(p)       If  any  of  the  assumptions  contained  in  the  substantive  consolidation opinion, if any, delivered to Lender in connection with the Loan, or in any update thereof or in any additional substantive consolidation opinion delivered subsequent to the closing of the Loan, is or shall become untrue in any material respect;

(q)       Except for the specific defaults set forth in this Section 11.01, if any other default occurs hereunder or under any other Loan Document which is not cured (i) in the case of any default which can be cured by the payment of a sum of money, within five (5) days after written notice from Lender to Borrower, or (ii) in the case of any other default, within thirty (30) days after written notice from Lender to Borrower; provided that if a default under clause (ii) cannot reasonably be cured within such thirty (30) day period and Borrower has responsibly commenced to  cure such  default  promptly upon  notice thereof from  Lender and  thereafter

diligently proceeds to cure same, such thirty (30) day period shall be extended for so long as it shall require Borrower, in the exercise of due diligence, to cure such default, but in no event shall the entire cure period be more than ninety (90) days.

11.02.  Remedies.  If an Event of Default occurs, Lender may, at its option, and without prior notice or demand, do and hereby is authorized and empowered by Borrower so to do, any or all of the following:

(a)       Acceleration.   Lender may declare the entire unpaid principal balance  of the Loan to be immediately due and payable.  If such acceleration takes place prior to the Open Date, an amount equal to the Prohibited  Prepayment  Fee shall be added  to the balance  of the Debt.

(b)       Recovery  of  Unpaid  Sums.  Lender. may,  from  time  to time,  take  legal action to recover any sums as the same become due, without regard to whether or not the Loan shall be accelerated and without prejudice to Lender's  right thereafter  to accelerate the Loan or exercise any other remedy, if such sums remain uncollected.

(c)       Foreclosure.   Lender may institute proceedings,  judicial or otherwise,  for the complete or partial foreclosure  of the Security Instrument or the complete or partial sale of the Property  under power of sale or under any applicable provision of law.   In connection  with any such proceeding,  Lender may sell the Property as an entirety or in parcels or units  and at such times and place (at one or more sales) and upon such terms as it may deem expedient unless prohibited by law from so acting.

(d)       Receiver.   Lender  may apply for the appointment  of a receiver,  trustee, liquidator or conservator of the Property, without regard for the adequacy of the security for the Debt or a showing of insolvency, fraud or mismanagement on the part of Borrower. Any receiver or other party so appointed has all powers permitted by law which may be necessary or usual in such cases for the protection, possession, control, management and operation of the Property. Borrower hereby consents, to the extent permitted under applicable law, to the appointment  of a receiver or trustee of the Property upon Lender's  request if an Event of Default has occurred.   At Lender's option, such receiver or trustee shall serve without any requirement of posting a bond.

(e)        Recovery  of  Possession.  Subject  to the  rights  of tenants  under  existing Leases,  Lender  may  enter  into  or  upon  the  Property,  either  personally  or by  its  agents,  and dispossess  and  exclude  Borrower  and its  agents  and servants  therefrom  (without  liability  for trespass, damages or otherwise), and take possession of all books, records and accounts relating to  the  Property,  and  Borrower  agrees  to  surrender  possession  of  the  Property  and· all  other Property, including without limitation, all documents, books, records and accounts relating to the Property, to Lender upon demand.   As a mortgagee-in-possession of the Property, Lender  shall have  all  rights  and  remedies  permitted  by  law  or  in  equity  to  a  mortgagee-in-possession, including,  without limitation,  the right to charge Borrower the fair and reasonable  rental  value for Borrower's use and occupation of any part of the Property that may be occupied or used by Borrower  and  the  right  to  exercise  all  rights  and  powers  of  Borrower  with  respect  to  the

Property, whether in the name of Borrower or otherwise (including, without limitation,  the right to make, cancel, enforce or modify Leases, obtain and evict tenants, and demand, sue for, collect and receive all Rents of the Property).

(f)        UCC Remedies.   Lender may exercise with respect to the Property,  each right, power or remedy granted to a secured party under the UCC, including, without limitation, (i) the right to take possession of the Property and to take such other measures as Lender deems necessary  for the care, protection  and preservation of the Property,  and (ii) the right to require that  Borrower,  at  its  expense,  assemble  the  Property  and  make  it  available  to  Lender  at  a convenient  place acceptable to Lender.  Any notice of sale, disposition or other intended  action by Lender with respect to the Property sent to Borrower in accordance with the provisions hereof at least ten (10) days prior to such action, shall constitute reasonable notice to Borrower.  Lender shall not have any obligation to clean-up or otherwise prepare the Property for sale.

(g)       Apply  Funds  in  Reserve  Accounts.  Lender  may  apply  any  funds  then deposited in any or all of the Reserve Accounts and or otherwise held in escrow or reserve  by Lender  under  the  Loan  Documents  (including  without  limitation  Restoration  Proceeds)  as a credit to the Loan, in such priority and proportion as Lender deems appropriate.

(h)       Insurance Policies.  Lender may surrender any or all insurance policies maintained  as required by this Loan Agreement,  collect the unearned  Insurance  Premiums  and apply  such  sums  as  a credit  on  the  Loan, in  such  priority  and  proportion  as  Lender  deems appropriate.  Borrower hereby appoints Lender its attorney-in-fact with full power of substitution (and which shall be deemed to be coupled with an interest and irrevocable until the Loan is paid and the Security  Instrument is discharged of record, with Borrower hereby ratifying  all that its said attorney shall do by virtue thereof) to surrender such insurance policies and collect such Insurance Premiums.

(i)     Intentionally Omitted.

(j)        Protection  of Lender's  Security  and Right to Cure. Lender may, without releasing  Borrower from any obligation hereunder or waiving the Event of Default, perform the obligation which Borrower failed to perform in such manner and to such extent as Lender deems necessary to protect and preserve the Property and Lender's interest therein, including without limitation (i) appearing in, defending or bringing any action or proceeding with respect to the Property, in Borrower's name or otherwise; (ii) making repairs to the Property or completing improvements   or  repairs  in  progress;  (iii)  hiring   and  paying   legal   counsel,   accountants, inspectors  or  consultants;  and  (iv) paying  amounts  which  Borrower failed  to pay.    Amounts disbursed by Lender shall be added to the Loan, shall be immediately due and payable, and shall bear interest at the Default Rate from the date of disbursement until paid in full.

(k)       Violation   of  Laws.     If  the  Property   is  not  in  compliance   with  all Requirements  of Law, Lender may impose additional requirements upon Borrower in connection with  such  Event  of  Default  including,   without  limitation,   monetary   reserves  or  financial equivalents.

11.03. Cumulative Remedies; No Waiver; Other Security.  Lender's remedies under this Loan Agreement are cumulative (whether set forth in this Article 11 or in any other section of this Loan Agreement) with those in the other Loan Documents and otherwise permitted by law or in equity and may be exercised independently, concurrently or successively in Lender's  sole discretion and as often as occasion therefor shall arise. Lender's delay or failure to accelerate the Loan or exercise any other remedy upon the occurrence of an Event of Default shall not be deemed a waiver of such right as remedy.  No partial exercise by Lender of any right or remedy will preclude further exercise thereof.  Notice or demand given to Borrower in any instance will not entitle Borrower to notice or demand in similar or other circumstances (except where notice is expressly required by this Loan Agreement to be given) nor constitute Lender's waiver of its right to take any future action in any circumstance without notice or demand. Lender may release security for the Loan, may release any party liable therefor, may grant extensions, renewals or forbearances with respect thereto, may accept a partial or past due payment or grant other indulgences, or may apply any other security held by it to payment of the Loan, in each case without prejudice to its rights under the Loan Documents and without such action being deemed an accord and satisfaction or a reinstatement of the Loan.   Lender will not be deemed  as a consequence of its delay or failure to act, or any forbearance granted, to have waived or be estopped from exercising any of its rights or remedies.

11.04. Enforcement Costs.  Borrower shall pay, on written demand by Lender all costs incurred by Lender in (a) collecting any amount payable under the Loan Documents, or (b) enforcing its rights under the Loan Documents, in each case whether or not legal proceedings are commenced or  whether legal  action is  pursued to final judgment. Such fees  and  expenses include, without limitation, reasonable fees for attorneys, paralegals, law clerks and other hired professionals, a reasonable assessment of the cost of services performed by Lender's  default management staff, court fees, costs incurred in connection with pre-trial, trial and appellate level proceedings, including discovery, and costs incurred in post-judgment collection efforts or in any bankruptcy proceeding. Amounts incurred by Lender shall be added to principal, shall be immediately  due  and  payable,  shall  bear  interest  at  the  Default  Rate  from  the  date  of disbursement until paid in full, if not paid in full within five (5) days after Lender's  written demand for payment, and such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

11.05. Application of Proceeds.  The proceeds from disposition of the Property shall be applied by Lender as a credit to the Loan and to recovery or reimbursement of the costs of enforcement (contemplated by Section 11.04 above) in such priority and proportion as Lender determines appropriate.

11.06.  Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets.

(a)       Borrower acknowledges that Lender has made the Loan to Borrower upon the security of its collective interest in the Property and in reliance upon the aggregate of the Property taken together being of greater value as collateral security than the sum of each Individual Property taken separately. Borrower agrees that the Security Instruments are and will

be cross-collateralized  and cross-defaulted with each other so that (i) an Event of Default  under any of the Security  Instruments  shall  constitute  an Event  of Default  under  each of  the  other Security Instruments which secure the Note; (ii) an Event of Default under the Note or this Loan Agreement  shall  constitute  an  Event  of  Default  under  each  Security  Instrument;  (iii)  each Security Instrument shall constitute security for the Note as if a single blanket lien were placed on all of the Properties as security for the Note; and (iv) such cross-collateralization  shall in no event be deemed to constitute a fraudulent conveyance.

(b)       To  the  fullest  extent  permitted  by  law,  Borrower,   for  itself   and  its successors and assigns, waives all rights to a marshalling of the .assets of Borrower, Borrower's partners and others with interests in Borrower, and of the Property, or to a sale in inverse order of alienation in the event of foreclosure of all or any of the Security Instruments, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the collection of the Debt without any prior or different resort for collection  or of the right of Lender to the payment  of the Debt  out of the net proceeds  of the Property  in preference  to  every  other  claimant  whatsoever.     In  addition,  Borrower,   for  itself   and  its successors  and  assigns,  waives  in  the  event  of foreclosure  of  any  or  all  of  the  Security Instruments,  any  equitable  right  otherwise  available  to  Borrower  which  would  require  the separate  sale of the Property  or require  Lender to exhaust its remedies  against  any Individual Property  or  any  combination  of  the Property  before  proceeding  against  any  other  Individual Property or combination of Property; and further in the event of such foreclosure Borrower does hereby expressly consent to and authorize, at the option of Lender, the foreclosure and sale either separately or together of any combination of the Property.

ARTICLE 12
NONRECOURSE- LIMITATIONS  ON PERSONAL LIABILITY

12.01.  Nonrecourse  Obligation.    Except  as  otherwise  provided  in  this  Article  12  or expressly  stated  in  any  of  the  other  Loan  Documents,  Lender  shall  enforce  the  liability  of Borrower to perform and observe the obligations contained in this Loan Agreement  and in each other  Loan  Document  only  against  the  Property  and  other  collateral  given  by  Borrower  as security for payment of the Loan and performance of Borrower's obligations under the Loan Documents and not against Borrower or any of Borrower's principals, directors, officers or employees.      Notwithstanding    the   foregoing,   this   Article   12   is   not_ applicable   to   the Environmental Indemnity or to any Guaranty executed in connection herewith.

12.02.  Full Personal Liability.  Section 12.01 above shall BECOME NULL AND VOID and the Loan FULLY RECOURSE  to Borrower if: (a) the Property or any part thereof becomes an asset in a voluntary bankruptcy or other insolvency proceeding; (b) Borrower or SPE Equity Owner commences a bankruptcy  or other insolvency proceeding; (c) an involuntary  bankruptcy or other insolvency proceeding is commenced against Borrower or any SPE Equity Owner (by a party  other  than  Lender)  but  only  if Borrower  or  such  SPE  Equity  Owner  has  failed  to  use

commercially  reasonable  efforts  to  dismiss  such  proceeding  (provided,  however  that  the foregoing clause shall not be deemed to require Borrower or SPE Equity Owner to incur any monetary cost in order to obtain such dismissal) or has consented to such proceeding; (d) if Borrower, any SPE Equity Owner, any Guarantor or any Affiliate or agent of (x) Borrower, (y) any SPE Equity Owner or (z) any Guarantor has acted in concert with, colluded or conspired with any party to cause the filing of any involuntary bankruptcy or other insolvency proceeding; or (e) a Data Delivery Failure occurs and is not cured within thirty (30) days after Lender's written notice thereof, which notice shall be a second notice given. after the expiration of the notice required under the definition of Data Delivery Failure.

12.03. Personal Liability for Certain Losses.  Section 12.01 above SHALL NOT APPLY and Borrower shall be PERSONALLY LIABLE for all actual losses or expenses incurred by Lender arising out of, or attributable to, any of the following:

(a)       Fraud or material misrepresentation or failure to disclose a material fact by Borrower, any SPE Equity Owner, any Guarantor or any Affiliate or agent of Borrower, any SPE Equity Owner or any Guarantor in connection with (i) the application for the Loan or the execution  and delivery  of  the  Loan Documents or  making  of  the  Loan, (ii)  any  financial statement or any other material certificate, report or document required to be furnished by Borrower to Lender herewith or hereafter, or (iii) any request for Lender's consent made during the term of the Loan;

(b)     A violation of any provision of Article 10 (captioned:  No Transfers or
Encumbrances; Due On Sale);

(c)       A material failure by Borrower or the SPE Equity Owner to comply with any provision of Article 7 (captioned: Single Purpose Entity Requirements) or Section 9.13 (captioned:  Existence, Change of Name or Location as a Registered Organization) of the Loan Agreement;

(d)       Misapplication or misappropriation by Borrower, any SPE Equity Owner, any Guarantor or any Affiliate or agent of Borrower, any SPE Equity Owner or any Guarantor of (i) insurance proceeds or condemnation awards payable to Lender in accordance with the Loan Agreement; (ii) Rent received by Borrower, (iii) Rent paid in advance by tenants under the Leases; (iv)  tenant security  deposits or  other  refundable deposits held  by  or  on  behalf  of Borrower in connection with Leases; or (v) any funds disbursed or advanced by Lender for Reserve Items pursuant to the provisions of this Loan Agreement.

(e)     ·   Fees or commissions paid by Borrower, after the occurrence and during the continuance of an Event of Default, to any Guarantor, any Affiliate, or any principal of Borrower, any Guarantor or Affiliate, in violation of the Loan Documents;

(f)        Damage to or loss of all or any part of the Property as a result of material, physical waste, gross negligence or willful misconduct by Borrower or its agents;

(g)     Criminal  acts of Borrower, any principal  of  Borrower, or  any  Affiliate resulting in the seizure, forfeiture or loss of all or any part of the Property; and

(h)     Removal by Borrower of all or any portion  of the Personal  Property  in violation of the Loan Agreement.

Lender  acknowledges  that  Borrower shall  incur  no personal  liability  hereunder  to the extent  Lender  incurs  any  actual  losses  or  expenses  arising  out  of,  or  attributable   to,  the circumstances  described  in  clauses  (a)  through  (h)  in  this  Section  12.03  which  were  caused solely as by acts or omissions of Walgreens, as tenant under the Walgreens Lease or the agents of Walgreens.

12.04.  No  Impairment.   Nothing  contained  in this  Article  12  shall  impair,  release  or otherwise adversely affect: (a) any lien, assignment or security interest created by the Loan Documents;  (b)  any indemnity,  personal  guaranty,  master  lease  or similar  instrument  now  or hereafter  made  in connection  with the Loan- (including,  without limitation,  the Environmental Indemnity  and  Guaranty);  (c)  Lender's  right  to  have  a receiver  or  trustee  appointed  for the Property;  (d)  Lender's  right  to  name  Borrower as  a defendant  in  any  foreclosure  action  or judicial sale under the Security Instrument or other Loan Documents or in any action for specific performance or otherwise to enable Lender to enforce obligations under the Loan Documents  or to realize upon Lender's  interest in any collateral given to Lender as security for the Loan; or (e) Lender's   right  to  a judgment  on  the  Note  against  Borrower if necessary  to  (i)   enforce  any guaranty or indemnity provided in connection with the Note, (ii) preserve or enforce its rights or remedies against any Individual Property or (iii) obtain any insurance proceeds or Condemnation awards  to  which  Lender  would  otherwise  be  entitled  under  this  Loan  Agreement;  provided, however,  that  any  judgment  obtained  against  Borrower shall,  except  to the  extent  otherwise expressly  provided  in this Article  12,  be  enforceable  against  Borrower only  to the  extent  of Borrower's  interest  in  the  Property  and  other  collateral  securing  payment  of  the  Loan  and performance  of Borrower's obligations under the Loan Documents.

12.05.   No  Waiver  of  Certain  Rights.   Nothing  contained  in  this  Article  12  shall  be deemed a waiver of any right which Lender may have under the Bankruptcy Code or applicable law to protect and pursue its rights under the Loan Documents including, without limitation,  its rights under Sections 506(a) or any other provision of the Bankruptcy Code to file a claim for the full  amount  of  the  Loan  or  to  require  that  the  collateral  continues  to  secure  all  of  the indebtedness owing to Lender under Loan Documents.

ARTICLE 13
INDEMNIFICATION

13.01.  Indemnification  Against Claims.  Borrower shall indemnify, defend, release  and hold harmless  Lender and each of the other Indemnified  Parties from and against any  and all Losses directly or indirectly arising out of, or in any way relating to, or as a result of (a) accident, injury to or death of Persons, or loss of, or damage to, property occurring in, on or with respect to the Property or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas,

streets or ways or otherwise arising with respect to the use of the Property; (b) failure of the Property to be in compliance with any Requirements of Law; (c) breach or default of Borrower's representations or obligations under Sections 8.27, 8.28 or 9.16 of this Loan Agreement; (d) any and all claims and demands whatsoever which may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge the lessor's  agreements contained in any Lease; (e) breach or default under the ERISA obligations set forth in Sections
8.26  and  9.15  of  this  Loan Agreement (including, without limitation, legal fees  and  costs · incurred  in  the investigations, defense and settlement  of  Losses incurred in  connecting  any prohibited  transaction or  in  the sale  of  a prohibited loan,  and in  obtaining any  individual
prohibited  transaction  exemption  under  ERISA  that  may  be  required,  in  Lender's   sole discretion); or (f)  any claim, litigation, investigation or proceeding commenced or threatened relating to any of the foregoing, whether or not Indemnified Party is a party thereto; provided, however, any such indemnity shall not apply to any Indemnified Party to the extent any such Losses  arise from  Indemnified Party's  gross negligence or willful misconduct (collectively,
"Indemnified Claims").

13.02.  Duty to Defend.  If an Indemnified Party claims indemnification under this Loan Agreement, the Indemnified Party shall promptly notify Borrower of the Indemnified Claim. After notice by any Indemnified Party, Borrower shall defend such Indemnified Party against such Indemnified Claim (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals reasonably approved, in writing, by the Indemnified Party.  Notwithstanding the foregoing, any Indemnified Party may, in its sole discretion and at the expense of Borrower, engage its own attorneys and other professionals to defend or assist it if such Indemnified Party determines that the defense as conducted by Borrower is not proceeding or being conducted in a satisfactory manner or that a conflict of interest exists between any of the parties represented by Borrower's counsel in such action or proceeding. Within five (5) business days of Indemnified Party's demand, Borrower shall pay or, in the sole discretion of the Indemnified Party, reimburse, the Indemnified Party for the payment of Indemnified Party's costs and expenses (including, without limitation, reasonable attorney fees, engineer fees, environmental consultant fees, laboratory fees and the fees of other professionals in connection therewith) in com1ection  with the Indemnified Claim.   Payment not made timely shall  bear interest at the Default Rate until paid in full and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

ARTICLE 14
SUBROGATION; NO USURY VIOLATIONS

14.01. Subrogation.  If the Loan is used to pay, satisfy, discharge, extend or renew any indebtedness secured by a pre-existing mortgage, deed of trust or other Lien encumbering the Property, then to the extent of funds so used, Lender shall automatically, and without further action on its part, be subrogated to all rights, including lien priority, held by the holder of the indebtedness secured by such prior Lien, whether or not the prior Lien is released, and such former rights are not waived but rather are continued in full force and effect in favor of Lender

and are merged with the Liens created in favor of Lender as security for payment of the Loan and performance  of the Obligations.

14.02.  No Usury.  At no time is Borrower required to pay interest on the Loan or on any other payment due hereunder or under any of the other Loan Documents (or to make any other payment  deemed by law or by a court of competent  jurisdiction  to be interest)  at a rate  which would  subject  Lender either to civil or criminal liability  as a result of being in excess  of the maximum interest rate which Borrower is permitted by applicable law to pay.  If interest (or such other  amount  deemed  to be interest)  paid  or payable  by Borrower  is deemed  to exceed  such - maximum  rate, then the amount to be paid immediately shall be reduced to such maximum  rate and  thereafter  computed  at  such  maximum  rate. All  previous  payments  in  excess  of  such maximum rate shall be deemed to have been payments of principal (in inverse order of maturity) and  not  on  account  of  interest  due  hereunder. For  purposes  of  determining   whether  any applicable  usury law has been violated,  all payments  deemed by law or a court of competent jurisdiction  to be interest  shall,  to  the extent  permitted  by  applicable  law,  be  deemed  to be amortized, prorated, allocated and spread over the full tenn  of the Loan in such manner  so that interest  is computed at a rate throughout  the full tenn  of the Loan which  does not exceed  the maximum lawful rate of interest.

ARTICLE 15
SALE OR SECURITIZATION  OF LOAN

15.01.  Splitting the Note.  Lender has the right from time to time to sever the Note into one or more separate promissory notes in such denominations as Lender determines in its sole discretion (including the creation of a mezzanine  loan secured by a collateral assignment  of the Equity Interests in Borrower and SPE Equity Owner), which promissory notes may be included in separate sales or securitizations  undertaken by Lender.  In conjunction  with any such action, Lender  may  redefine  the  interest  rate  and  amortization  schedule;  provided,  however:  (a)  if Lender redefines the interest rate, the initial weighted average of the interest rates contained  in the severed promissory notes taken in the aggregate shall equal the Applicable Interest Rate, and (b) if Lender  redefines  the amortization  schedule,  the amortization  of the severed  promissory notes taken in the aggregate shall, require no more amortization to be paid under the Loan than as required under this Loan Agreement and the Note at the time such action was taken by Lender (adjusted, if applicable, to account for an amortization schedule of thirty (30) years with the first five  (5)  years  interest  only)  and  (c)  the  principal  balance  of  the  components  of  the  Note immediately after the effective date of such modification equals the principal balance of the Loan immediately  prior to such modification.  Subject to the foregoing, each severed promissory note, and the  Loan evidenced thereby, shall be upon all of the terms and provisions contained  in this Loan Agreement  and the Loan Documents  which continue in full force and effect, except  that Lender may allocate specific collateral given for the Loan as security for performance  of specific promissory notes, in each case with or without cross default provisions.  Borrower, at Borrower's expense, agrees to cooperate with all reasonable requests of Lender to accomplish the foregoing, including, without limitation, execution and prompt delivery to Lender of a severance agreement and such other documents  as Lender shall reasonably require, which shall all be subject  to the

reasonable approval of Borrower's  counsel.  Borrower hereby appoints Lender its attorney-in­ fact with full power of substitution (and which shall be deemed to be coupled with an interest and irrevocable until the Loan is paid and the Security Instrument is discharged of record, with Borrower hereby ratifying all that its said attorney shall do in accordance with the terms hereof by  virtue thereof)  to make and execute all documents necessary or  desirable to  effect  the aforesaid severance; provided, however, Lender shall not make or execute any such documents under such power until five (5) days after written notice has been given to Borrower by Lender of Lender's intent to exercise its rights under such power. Borrower's failure to deliver any of the documents requested by Lender that Borrower is required to deliver hereunder for a period of ten (10) business days after such notice by Lender shall, at Lender's option, constitute an  Event of Default hereunder.  Notwithstanding the foregoing, (i) Borrower's payment obligations shall at all times be the same as if the  entire Loan was evidenced by  one promissory note  at the Applicable Interest Rate; (ii) subject to the limitation set forth in Section 15.02, Lender's costs incurred in com1ection with any splitting of the Note shall be shared equally between Borrower and Lender; and (iii) in the event new promissory notes evidencing the Loan are prepared and executed in connection with such a splitting of the Note, Lender shall promptly return  the original Note to the Borrower. Nothing in this Section 15.01 shall result in an economic change in the transaction, impose any legal obligations on Borrower or restrict Borrower in any material way.

15.02. Lender's Rights to Sell or Securitize.  Borrower acknowledges that Lender, and each successor to Lender's interest, may (without prior notice to Borrower or Borrower's prior consent), sell or grant participations in the Loan (or any part thereof), sell or subcontract the servicing rights related to the Loan, Securitize the Loan or include the Loan as part of a Securitization and, in connection therewith, assign Lender's rights hereunder to a securitization trustee.  Borrower, at its expense, but subject to the limitation set forth in the next  to last sentence of this Section 15.02 agrees to cooperate with all .reasonable requests of Lender in connection with any of the foregoing including, without limitation, executing any financing statements or other documents deemed necessary by Lender or its transferee to create, perfect or preserve the rights and interest to be acquired by such transferee, provide any updated financial information with appropriate verification through auditors letters, revised organizational documents and counsel opinions consistent with those delivered by Borrower in connection with the origination of the Loan, execute amendments to the Loan Documents (which Loan Documents, as modified, will be subject to the same limitations set forth in Section 15.01), an agreement (A) ce1iifying that Borrower has examined such sections specified by Lender of any Disclosure Document specified by Lender and that each section of such Disclosure Document, as it relates to Borrower, SPE Equity Owner, Guarantor, or the Property, does not as of the date of such Disclosure Document contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; provided, however, such obligation does not create any obligation on the part of Borrower to update the effective date of any representations made by Borrower in connection with the origination of the Loan, providing a mortgagor estoppel certificate and such other information about Borrower, SPE Equity Owner, any Guarantor or the Property as Lender may reasonably require for Lender's offering materials. Notwithstanding

anything to the contrary in this Section 15.01 or this Section 15.02, Lender shall not require that (i) Borrower incur more than $5,000.00  in out of pocket  expenses or {ii)  Borrower  make  any representations  or warranties;  provided, however, Borrower shall deliver  to Lender and/or  any Rating Agency a certificate executed by the manager of Borrower certifying as to the accuracy in all material respects, as of the closing date of the Securitization,  of all representations  made by Borrower in the Loan Documents as of the origination of the Loan or, if such representations are no longer accurate, certifying as to what modifications to the representations  would be required to make such representations  accurate in all material respects as of the closing date of the Securitization.   Borrower shall promptly notify Lender at such time that its legal expenses have exceeded $5,000.00.

15.03.   Dissemination  of Information. Borrower acknowledges  that Lender may provide to third parties with an existing or prospective interest in the servicing, enforcement, evaluation, performance, ownership, purchase, participation or Securitization of the Loan, including, without limitation, any Rating Agency and any entity maintaining databases on the underwriting and performance  of commercial mortgage loans, any and all information  which Lender now has or may hereafter acquire relating  to the Loan, the Prope1iy, Borrower, SPE Equity Owner or any Guarantor,  as  Lender  determines necessary  or  desirable  and  that  such  information  may  be included   in  disclosure   documents   in  connection   with  a  Securitization   or  syndication   of participation   interests,   including,   without  limitation,   a  prospectus,   prospectus   supplement, offering  memorandum,  private  placement  memorandum  or  similar  document  (each,  a "Disclosure  Document")  and  also  may  be  included  in  any  filing  with  the  Securities  and Exchange  Commission  pursuant  to the Securities Act or the Securities  Exchange  Act.   To the fullest extent permitted  under applicable law, Borrower irrevocably  waives  all rights, if any, to prohibit such disclosure, including, without limitation, any right of privacy.

15.04.   Reserves  Accounts.  If  the  Loan  is  made  a part. of  a  Securitization,  Borrower acknowledges  that all funds  held by Lender in the Reserve  Accounts  in accordance  with  this Loan  Agreement  or  the  other  Loan  Documents  shall  be  deposited  in "eligible  accounts"  at "eligible institutions" or invested in "permitted investments" as then defined and required by the Rating Agencies, and this Loan Agreement will automatically be amended to so provide.

15.05.  Securitization  Indemnification.   Borrower  agrees  to provide in connection  with each Disclosure Document,  an indemnification  certificate: (a) certifying that certain designated sections of any such Disclosure Document (as specified for Borrower's review by Lender) have carefully been examined, and that, to the best of such indemnitor's  knowledge, such sections do not contain any untrue statement of a material fact or omit to state a material fact necessary in order  to make  the statements  made,  in the light of the circumstances  under  which  they  were made, not misleading; provided, however, such obligation does not create any obligation  on the part  of  Borrower  to  update  the  effective  date  of  any  representation  made  by  Borrower  in connection  with the origination  of the Loan; (b) indemnifying  Lender (and for purposes of this Section 15.05, Lender shall include its officers and directors) and the Affiliate of Lender that (i) has  filed  the registration  statement,  if any,  relating  to the  Securitization  and/or  (ii)  which  is

acting as issuer, depositor, sponsor  and/or a similar  capacity with respect to the Securitization (any Person described  in (i) or (ii), an "Issuer Person"), and each director  and officer  of any Issuer  Person, and each Person or entity who controls any Issuer Person within the meaning  of Section  15   of the Securities  Act or Section  20 of the Securities  Exchange  Act (collectively, "Issuer Group"), and each Person which is acting as an underwriter, manager, placement  agent, initial purchaser or similar capacity with respect to the Securitization,  each of its directors  and officers and each Person who controls any such Person within the meaning of Section 15  of the Securities  Act or Section 20 of the Securities Exchange Act which is acting as an underwriter, manager, placement agent, initial purchaser or similar capacity with respect to the Securitization, each  of its  directors  and  officers  and each  Person  who  controls  any such  Person  within  the meaning  of  Section  15  of the Securities  Act  and  Section  20 of the Securities  Exchange  Act (collectively,  "Underwriter Group") for any Losses to which Lender, the Issuer Group  or the Underwriter  Group may become subject insofar as the Losses arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in such section  (and required  to  be  certified  by  Borrower  as  described  above  and  provided  that  Borrower   and Guarantor have been given an opportunity to examine and approve such sections) or arise out of are based upon the omission or alleged omission to state therein a material  fact required  to be stated in such sections necessary in order to make the statements in such sections (and required to be certified by Borrower as described above and provided that Borrower and Guarantor  have been given an opportunity to examine and approve such sections) or in light of the  circumstances under  which  they  were made,  not  misleading  (collectively,  "Securities Liabilities");  and  (c) agreeing to reimburse Lender, the Issuer Group and the Underwriter Group for any legal or other expenses  reasonably  incurred  by  Lender,  the  Issuer  Group  and  the  Underwriter   Group  in investigating  or defending the Securities Liabilities; provided, however, that indemnitor  will be liable under clauses (b) or (c) above only to the extent that such Securities Liabilities arise out of, or are based upon, any such untrue statement or omission made therein in reliance upon, and in conformity  with,  information  furnished  to  Lender  or  any  member  of  the  Issuer  Group  or Underwriter   Group  by  or  on  behalf  of  Borrower  or  a  Guarantor in  connection   with  the preparation  of  such  sections  of  the  Disclosure  Documents  (and required  to  be  certified  by Borrower  as described  above and provided  that Borrower  and Guarantor  have been  given  an opportunity to examine and approve such sections) or in connection with the underwriting  of the Loan, including, without limitation, financial statements of Borrower, SPE Equity Owner or any Guarantor,   and   operating   statements;   provided,   however,   Borrower   indemnification   and reimbursement  obligations  set forth in this Section 15.05 (x)   shall not apply to the extent  any Securities  Liabilities  arise as a result  of Lender  inaccurately  transcribing  written  information provided  by  the Borrower  and (y) with respect  to any information  contained  in a Disclosure Document  that is derived in part from information  provided by Borrower and/or Guarantor  and in part from information  provided by others shall be limited to any untrue statement or alleged untrue  statement  therein  or omission  therefrom  that  results  from  an error  in  any information provided  by  Borrower  and/or  Guarantor  which  Borrower  and Guarantor  have  been  given  an opportunity  to  examine  and  approve.     This  indemnity  is  in  addition  to  any  liability  which Borrower may otherwise have and shall be effective whether or not an indemnification  certificate described  in  (a)  above  is  provided  and shall be  applicable  based  on  information  previously

provided by or on behalf of Borrower or a Guarantor   if the indemnification  certificate  is not provided.

15.06.   Additional Financial Information for Large Loans.

(a)       If requested by Lender in connection with a public Securitization  in which the  Loan  constitutes  at least  ten percent  (10%)  of the assets  of the Securitization  (a "Large Loan"), Borrower,  at Lender's  expense, shall provide Lender with all financial statements  and other financial, statistical or operating information,  to the extent required pursuant to Regulation S-X of the Securities Act or any other Requirements of Law in connection with any Disclosure Document or Securities  Filing.   All financial statements  provided by Borrower pursuant  to this Section  shall  be  prepared  in  accordance  with  GAAP  and  shall  meet  the  requirements   of Regulation  S-X and other applicable Requirements  of Law.   All financial statements  reporting for a full operating year (i) shall be audited by the independent  accountants in accordance  with generally accepted auditing standards, Regulation S-X and all other applicable Requirements  of Law, (ii) shall be accompanied by the manually executed report of the independent  accountants thereon, which report shall meet the requirements of Regulation S-X and all other applicable Requirements  of Law, and (iii) shall be accompanied by a manually executed written consent of the independent accountants, acceptable to Lender, that authorizes the inclusion of such financial statements  in any Disclosure Document or· Securities Filing and permits the use of the name of such independent accountants and reference to such independent accountants as "experts" in any Disclosure Document and Securities Filing, all of which shall be provided, at Lender's expense, at  the  same  time ·as the  related  financial  statements  are required  to be  provided.    All  other financial statements shall be certified by the manager of Borrower, which certification shall state that  such  financial statements  meet  the  requirements  set  forth  in  the  first  sentence  of  this paragraph..

(b)       If requested by Lender in connection with a Large Loan, Borrower  shall provide  Lender,  promptly  upon  request,  with  any  other  or  additional  financial  statements  or financial, statistical or operating information as Lender determines to be required pursuant to Regulation  S-X or other legal requirements in connection with any Disclosure Document  or any filing under or pursuant to the Securities Exchange Act in connection with or relating to a Securitization.

ARTICLE 16
BORROW FURTHER ACTS AND ASSURANCES PAYMENT OF SECURITY RECORDING CHARGES

16.01.  Further  Acts.   Without  regard  to Borrower's obligation  to  cooperate  in  certain matters set forth in Article 15, Borrower, at Borrower's expense (unless otherwise provided  for herein),  agrees  to  take  such  further  actions  and  execute  such  further  documents  as  Lender reasonably may request to carry out the intent of the Loan Documents or to establish and protect the rights and remedies created or intended to be created in favor of Lender under the Loan Documents or to protect the value of the Property and Lender's  security interest or liens therein. Borrower  agrees  to  pay  all  filing,  registration  or  recording  fees  or  taxes,  and  all  expenses

incident to the preparation, execution, acknowledgment, or filing/recording of the Security Instrument, the Assignment of Leases and Rents, financing statements or any such instrument  of further assurance, except where prohibited by law so to do.

16.02.  Replacement Documents.   Upon receipt of an affidavit from an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any other Loan Document which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation  of such document,  Borrower will issue a replacement original in lieu thereof in the same original principal amount and otherwise on the same terms and conditions as the original.

16.03.  Borrower Estoppel Certificates.

(a)       Borrower Information.   Borrower, within ten (10) days of Lender's written request (provided that such requests shall be limited to no more than one (1) time per calendar year  unless  an  Event  of  Default  shall  have  occurred),  shall  furnish  to  Lender  or  Lender's designee  a statement, duly acknowledged  and certified by a Responsible  Officer, setting  forth: (i) the Maximum  Loan Amount and the amount of principal advanced as of the certificate  date; (ii) the unpaid principal amount of the Loan; (iii) the calculation of the rate of interest accruing on the Loan, including  the then Applicable  Interest  Rate; (iv) the Payment  Due Date  and the Maturity  Date;  (v) the  date  installments  of interest  and/or  principal  were  last  paid;  (vi) that, except as provided in such statement, no defaults or events exists which would be an Event of Default with the giving of any applicable notice or the expiration of any applicable grace or cure period or both; (vii) that the Loan Documents  are valid, legal and binding obligations  and have not been modified or, if modified, giving the particulars of such modification;  (viii) whether any offsets  or  defenses  exist  against  Borrower's  obligation  to  pay  the  Loan  and  perform  the Obligations and, if any are alleged to exist, a detailed description thereof; (ix) that all Leases are in full force and effect, and for Leases other than residential Leases, have not been modified or if modified, setting forth all modifications; (x) a current Rent Roll for the Property, (xi) the date to which  Rents under  the Leases have been paid; (xii) whether or not, to the best knowledge  of Borrower, any of the tenants under the Leases are in default under the Leases, and, if any of the tenants are in default, setting forth the specific nature of all such defaults; and (xiii) such other matters reasonably requested by Lender and reasonably related to the Leases or the Property.

(b)       Tenant Estoppels. Borrower shall deliver to Lender (at Lender's expense any time  following  the Closing  Date provided  no Event of Default  shall  have occurred)  and promptly  upon  Lender's  written  request  (but  in  any  event  no later  than  forty-five  (45)  days following  Lender's   request),  duly  executed  estoppel  certificates  from  tenants  identified   by Lender attesting to such facts regarding a Major Lease as Lender may require, including, without limitation:  (i) that the Lease is in full force and effect with no defaults thereunder on the part of any party, and no event exists that would be an event of default thereunder with giving of any applicable notice or the expiration of any applicable grace or cure period or both; (ii), that none of the Rents has been paid more than one month in advance, except as a security  deposit;  and (iii) that the tenant claims no defense or offset against the full and timely performance of its obligations  under  the  Lease.   For purposes  of this Section  16.03,  the form  of estoppel  letter

required by the Walgreens  Lease shall be an acceptable form, and may, during the first  year of the Walgreens Lease, be subject to any remaining punchlist items.

(c)       Lender Statement of Loan Information.  After written request by Borrower not more  than twice annually,  Lender shall furnish  Borrower  a statement  setting forth:  (i) the original  Maximum  Loan Amount  and the amount of principal  advanced  by  Lender  as of the certificate date; (ii) the unpaid principal amount of the Loan; (iii) the rate of interest accruing on the Loan, including the then Applicable Interest Rate; and (iv) the balance of amounts held in the Reserve Accounts, if any.

16.04.  Recording   Costs.    Borrower  will  pay  all  transfer  taxes,  filing,  registration, recording  or  similar  fees,  and  all  expenses  incident  to  the  preparation,  execution, acknowledgment,   recording,   filing  and/or  release  or  discharge   of  the  Note,  the   Security Instrument  and each of the other Loan Documents,  and all modifications,  extensions, consolidations, or restatements of the same, except where prohibited by law so to do.

16.05.  Publicity.     Borrower   acknowledges   and  agrees  that  Lender  may  use   basic transaction information  (including, without limitation, the name of the Borrower and the address of the Property) publicly in press releases or other marketing material, but shall not disclose any personal financial information regarding any principals of Borrower or Guarantor.

ARTICLE 17
LENDER CONSENT

17.01.  No Joint Venture; No Third Party Beneficiaries.  Borrower and Lender intend that the relationships created hereunder and under each of the other Loan Documents are solely those of borrower  and lender.   Nothing herein or in any of the other Loan Documents  is intended  to create, nor shall it be construed as creating anything but a debtor-creditor  relationship  between Borrower and Lender nor shall they be deemed to confer on anyone other than Lender, and its successors  and assigns, any right to insist upon or to enforce the performance or observance  of any of the obligations contained herein or therein.

17.02.   Lender Approval.  Wherever pursuant to a Loan Document (a) Lender exercises any right to approve or disapprove or to grant or withl1old consent; (b) any arrangement  or tenn is to be satisfactory to Lender; (c) a waiver is requested from Lender, or (d) any other decision is to be made by Lender, all shall be made in Lender's sole discretion, unless expressly provided otherwise  in such Loan Document.   By approving or granting consent, accepting performance fi:om Borrower, or releasing funds from a Reserve Account, Lender shall not be deemed to have warranted  or  affirmed  the  sufficiency,  completeness,  legality  or  effectiveness  of  the  subject matter or of Borrower's compliance with Requirements of Laws.  Notwithstanding  any provision under the Loan Documents  which provide Lender the opportunity to approve or disapprove  any action or decision by Borrower, Lender is not undertaking the performance of any obligation  of Borrower under any of the Loan Documents or any of the other documents and agreements in connection with this transaction (including, without limitation, the Leases).

17.03.   Performance  at Borrower's  Expense.  Borrower acknowledges and agrees  that in connection with each request by Borrower to: (a) modify or waive any provision of the Loan Documents; (b) release or substitute Property; (c) obtain Lender's  approval or consent whenever required  by  the  Loan  Documents  including,  without  limitation,  review  of a Transfer  request, matters affecting a Major Lease, improvements  or alterations to the Property, and easements  or other additions to Permitted  Encumbrances; or (d) provide a subordination,  non-disturbance and attornment  agreement,  Lender  reserves  the  right  to  collect  a review  or  processing  fee  from Borrower based on a reasonable estimate of the administrative costs which Lender will incur to connection  therewith. Borrower agrees to pay such fee along with all reasonable legal fees and expenses incurred by Lender and the fees required for a Rating Confirmation  or approval  from the trustee if the Loan has been Securitized, as applicable, irrespective of whether the matter is approved, denied or withdrawn. Any amounts payable by Borrower hereunder, shall be deemed a part of the Loan, shall be secured by this Loan Agreement and shall bear interest at the Default Rate if not fully paid within ten (10) days of written demand for payment.

17.04.   Non-Reliance.   Borrower agrees that, except as specifically  provided in the Loan Documents,  any diligence or investigation performed by or on behalf of Lender in underwriting or servicing the Loan (including, without limitation, information obtained about the Property  the Borrower  or its  equity  investors  or affiliates)  does not in any respect  limit  or excuse  any of Borrower's  representations,   warranties,   covenants   or   agreements   set   forth   in   this   Loan Agreement or any of the other Loan Documents.   The fact that Lender has performed  diligence does  not  affect  Lender's   ability  or  right  to  rely  fully  upon  the  representations,   warranties, covenants and agreements made by Borrower in the Loan Documents or to pursue any available remedy for a breach thereof.  If Lender delivers or has delivered to Borrower (or to Borrower's agents,  equity  investors  or representatives)  any information  obtained  or developed  by  Lender relating to the Loan, the Property or Borrower, Borrower acknowledges and agrees that such information has been delivered for informational purposes only and Lender has no liability of responsibility to Borrower with respect to such information, including, without limitation, the completeness  or accuracy  of any such information.    No due diligence  consultant  engaged  by Lender is or shall be deemed an agent of Lender.

ARTICLE 18
MISCELLANEOUS  PROVISIONS

18.01.   Notices.  All notices and other communications under this Loan Agreement  are to be in writing and addressed to each party as set forth below.  Default or demand notices shall be deemed to have been duly given upon the earlier of: (a) actual receipt; (b) one (1) business  day after having been timely deposited for overnight delivery, fee prepaid, with a reputable overnight courier service, having a reliable tracking system; or (c) three (3) business days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by certified mail, postage prepaid, return receipt requested, and in the case of clause (b) and  (c)  irrespective   of  whether  delivery  is  accepted.    A  new  address  for  notice  may  be established by written notice to the other; provided, however, that no change of address will be effective  until  written  notice  thereof  actually  is received  by the party  to whom  such  address

change is sent.  Notice to outside counsel or parties other than the named Borrower and Lender, now or hereafter designated by a party as entitled to notice, are for convenience only and are not required for notice to a party to be effective in accordance with this section. Notice addresses are as follows:

Address for Lender:    Capmark Bank
6955 Union Park Center- Suite 330
Midvale, Utah 84047
Attention: President
Fax: 801-567-2681
with required copies to: Capmark Finance Inc.
116 Welsh Road
Horsham, PA 19044
Attention: Commercial Loan Servicing
Fax: 215-328-3478

Address for Borrower:    Penn 1031 LLC
7439 Middlebelt Road, Suite 2
West Bloomfield, MI 48322
Attn: Norbert A. Zuckerman
Fax: 248-737-2401 and    Borrower's counsel
Jaffe Raitt Heuer & Weiss, P.C. Suite 2500
27777 Franklin Road
Southfield, MI 48034-8214
Attn.: Noam Y. Raz, Esq. or Arthur A. Weiss, Esq.
Fax: 248-351-3082

18.02. Entire Agreement; Modifications; Time of Essence.   This Loan Agreement, together with the other Loan Documents, contain the entire agreement between Borrower and Lender relating to the Loan and supersede and replace all prior discussions, representations, communications and agreements (oral or written). If the terms of any of the Loan Documents are in conflict, this Loan Agreement shall control over all of the other Loan Documents unless otherwise expressly provided in such other Loan Document. No Loan Document shall be modified, supplemented or terminated, nor any provision thereof waived, except by a written instrument signed by the party against whom enforcement thereof is sought, and then only to the extent  expressly set  forth in  such writing.   Time is  of  the  essence  with  respect to  all of Borrower's obligations under the Loan Documents.

18.03.  Binding Effect; Joint and Several Obligations. This Loan Agreement and each of the other Loan Documents shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors and assigns, whether by voluntary action of the parties or by operation of law. (The foregoing does not modify any conditions regulating Transfers.)   If Borrower consists of more than one party, each shall be jointly and severally liable to perform the obligations of Borrower under the Loan Documents.

18.04.  Duplicate Originals; Counterparts.  This Loan Agreement and each of the other Loan Documents may be executed in any number of duplicate originals, and each duplicate original shall be deemed to be an original.  This Loan Agreement and each of the other Loan Documents (and each duplicate original) also may be executed in any number of counterparts, each of which shall be deemed an original and all of which together constitute a fully executed agreement even though all signatures do not appear on the same document.

18.05.   Unenforceable Provisions.  Any provision of this Loan Agreement or any other Loan Documents which is determined by a court of competent jurisdiction or government body to be invalid, unenforceable or illegal shall be ineffective only to the extent of such holding and shall not affect the validity, enforceability or legality of any other provision, nor shall such determination apply in any circumstance or to any party not controlled by such determination.

18.06.  Governing Law.  Tlns Loan Agreement and each of the other Loan Documents, other than the Security Instrument and the Assignment of Leases, shall be interpreted and enforced according to the laws of the State of Michigan (without giving effect to rules regarding conflict of laws).

18.07.  Consent to Jurisdiction.  Borrower hereby consents and submits to the exclusive jurisdiction and venue of any state or federal court sitting in the county and state where the Property is located with respect to any legal action or proceeding arising with respect to the Loan Documents and waives all objections which it may have to such jurisdiction and venue. Nothing herein shall, however, preclude or prevent Lender from bringing actions against Borrower in any other jurisdiction as may be necessary to enforce or realize upon the security for the Loan provided in any of the Loan Documents.

18.08.   WAIVER OF TRIAL BY  JURY.   BORROWER AND LENDER  EACH WAIVE THEIR RESPECTIVE RIGHT, TO THE FULLEST EXTENT PERMITTED BY LAW, AND AGREE NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS LOAN AGREEMENT, ANY OTHER LOAN DOCUMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER.

ARTICLE 19
LIST OF DEFINED TERMS

19.01.  Definitions.  The following words and phrases shall have the meaning specified below.

"Affiliate" of any Person means (a) any other Person which, directly or indirectly, is in Control of, is Controlled by or is under common Control with, such Person; (b) any other Person who is a director or officer of (i) such Person, (ii) any subsidiary of such Person, or (iii) any Person described in clause (a) above; or (c) any corporation, limited liability company or partnership which has as a director any Person described in clause (b) above.

"Applicable Interest Rate" has the meaning set forth in Section2.02(b) of this
Loan Agreement.

   "Approved Budget" has the meaning set forth in Section 9.11(a)(iv) of this Loan Agreement.

"Assignment of Leases and Rents" means the Assignment of Leases and Rents dated as of the Closing Date from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of Borrower's right, title and interest in and to the Leases and the Rents with respect to the Property.

"Assignment of Property Management Contract" means an Assignment  of Property Management Contract and Subordination of Management Fees dated as of the Closing Date from Borrower, as assignor, to Lender, as assignee, and acknowledged by Property Manager or as applicable, any other Assignment of Property Management Contract executed pursuant to Section 9.14.

"Bankruptcy Code" means the Bankruptcy Reform Act of 1978 codified as 11
U.S.C. §101 et seq., and the regulations issued thereunder, both as hereafter modified from time to time.
 
                   "Borrower" has the meaning set forth in the introductory paragraph of this Loan 
Agreement.
"Business Day" or "business day" means any day other than a Saturday, a Sunday, or days when Federal Banks located in the State of New York, State of Michigan, State of Illinois or Commonwealth  of Pennsylvania are closed for a legal holiday or by government directive.

"Capital Expenditures" means any hard or soft costs spent to add, improve or expand property, plant and equipment assets (including, without limitation, the Replacements contemplated under the Loan) and/or amounts budgeted for the future for the same purposes.

"Cash Flow Available for Debt Service" means, for a specified period, (a) the Operating Income less (b) Operating Expenses as determined by Lender using the underwriting standards for the closing of the Loan.

"Casualty" means the occurrence of damage or destruction to the Property, or any part thereof, by fire, flood, vandalism, windstorm, hurricane, earthquake, acts of terrorism or any other casualty.

"Closing Date" means the date of this Loan Agreement.

"Compliance Certificate" means a compliance certificate substantially in the form of Exhibit A hereto, signed by a Responsible Officer of Borrower.

"Condemnation" means the taking by any Governmental Authority of the Property or any part thereof through eminent domain or otherwise (including, without limitation, any transfer made in lieu of or in anticipation of the exercise of such taking).

"Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person whether through ownership of voting securities, beneficial interests, by contract or otherwise. The definition is to be construed to apply equally to variations of the word "Control" including "Controlled," "Controlling"  or "Controlled by."

"Data Delivery Failure" means, without reference to any cure period under Article 11, each instance that any of the following occur: (a) failure to deliver any of the reports, information, statements or other materials required under Section 9.11 within ten (10) business days after written notice from Lender, (b) failure to provide the Compliance Certificate within ten (10) business days after written notice from Lender, or (c) failure to permit Lender or its representatives to inspect or copy books and records within two (2) business days of Lender's written request.

"Debt" means the aggregate of all principal and interest payments that accrue or are due and payable in accordance with the Loan Agreement, together with any other amounts due under the Loan Documents.  The terms "Debt" and "Loan" have the same meaning whenever used in the Loan Documents.

"Debt Service Coverage Ratio" means, as to a  specific period, the ratio of (a) the Cash Flow Available for Debt Service, to (b) the principal and interest that would be due and payable under the Note based on the then current Applicable Interest Rate.

   "Default Rate" has the meaning set forth in Section 2.04(e) of this Loan
Agreement.
    "Defeasance" has the meaning set forth in Section 2.05(b)(i) of this Loan
Agreement

"Defeasance Collateral" has the meaning set forth in Section 2.05(b)(iii) of this
Loan Agreement

"Defeasance Pledge Agreement" has the meaning set forth in Section 2.05(b)(ii)
of this Loan Agreement.

   "Defeased Note" has the meaning set forth in Section 2.05(b)(v) of this Loan Agreement.

"Disbursement Request" means a written request substantially in the form of Exhibit B from Borrower delivered to Lender, signed by a Responsible Officer of Borrower and requesting Lender to disburse funds from a Reserve Account.  Each Disbursement Request shall describe in reasonable detail the use of the funds requested by the Disbursement Request and shall have attached to it, as applicable: (a) the original invoices for all items or materials purchased or services performed  which are to be funded by the Disbursement Request, and (b) copies of all permits, licenses and approvals, if any, by any Governmental Authority confirming completion of the Reserve Items.  If an original invoice is not available, Borrower shall be required to evidence, to Lender's satisfaction, the amounts expended for which reimbursement is requested.

     "Disclosure Documents" has the meaning set forth in Section 15.03 of this Loan Agreement.

"Environmental Indemnity" means the Environmental Indemnity Agreement dated as of the Closing Date from Borrower and the other "Indemnitors" named therein to Lender.

"Equity Interests" means (a) partnership interests (whether general or limited) in an entity which is a partnership; (b) membership interests in an entity which is a limited liability company; or (c) the shares or stock interests in an entity which is a corporation or (d) beneficial interests in a trust.

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

"Event of Default" means any of the events specified in Section 11.01 of this
Loan Agreement.

"Excess  Cash  Flow Reserve  Account" means an account held by Lender, or Lender's designee, in which the excess cash flow deposited in accordance with the provisions of Section 4.07 of this Loan Agreement will be held, which shall not constitute a trust fund.

    "FRB Release"  has the meaning set forth in Section 2.05(d) of this Loan
Agreement.
"GAAP" means generally accepted accounting principles in the United States of
America as in effect from time to time.

"Governmental Authority" means any nation or government,  any state or other political subdivision thereof, and any Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to such government.

"Guarantor" means the Person, Norbert A. Zuckerman, individually or collectively as the context requires, who is executing the Guaranty as guarantor and the Environmental Indemnity as indemnitor.  If mote than one, Guarantors are jointly and severally liable for their obligations under such agreements.

"Guaranty" means the Guaranty (Exceptions to Nonrecourse Liability) dated as of the Closing Date from Guarantor to Lender.

"Immediate Repair Deposit" has the meaning set forth in Section 4.04(b) of this
Loan Agreement, subject to adjustment as set forth in Section 4.04(d).

"Immediate Repair Escrow Account" means an account held by Lender, or Lender's designee, in which the Immediate Repair Deposit will be held, which shall not constitute a trust fund.

"Immediate Repairs" means the repairs or improvements to the Property identified on Exhibit C hereto.

"Improvements" has the meaning set forth in the Security Instrument.

"Indemnified Claim" means the basis for the Indemnified Party's claim for indemnification under Article 13 hereof.

"Indemnified Parties" means Lender, together with its successors and assigns, which shall include, without limitation, any owner or prior owner or holder of the Note, any servicer of the Loan, any investor, or holder of a full or partial interest in the Loan, any receiver or other fiduciary appointed in a foreclosure or other proceeding under any Requirements of Law regarding creditors' rights, any officers, directors, shareholders, partners, members, employees, agents, servants, representatives,  contractors, subcontractors, Affiliates of any and all of the foregoing, in all cases whether during the term of the Loan or as part of, or following, a foreclosure of the Security Instrument.

"Independent Director" means an individual who shall not have been at the time of such individual's initial appointment, and may not have been at any time during the preceding five years, and shall not be at any time while serving as an Independent Director of the SPE Equity Owner or Borrower if a single member limited liability company or, if applicable, either (a) a shareholder of, or an officer, director, partner or employee of, Borrower or SPE Equity Owner or any of their respective shareholders, partners, members, subsidiaries or Affiliates, (b) a customer of, or supplier to, Borrower or SPE Equity Owner or any of their respective shareholders, partners, members, subsidiaries or Affiliates, (c) a person or other entity Controlling or under common Control with any such shareholder, officer, director, partner,

member, employee, supplier or customer, or (d) a member of the immediate family of any such shareholder, officer, director, partner, member, employee, supplier or customer.

"Index" has the meaning set forth in Section 2.05(d).

"Individual Property" means each of the properties described in Exhibit G.

"Initial TI/LC Deposit" has the meaning set forth in Section 4.06.

"Insurance Premium Escrow Account" means an account held by Lender, or Lender's designee, in which Borrower's initial deposit for Insurance Premiums paid on the Closing Date and the Monthly Insurance Deposits will be held.

"Insurance Premiums" means the premiums for the insurance Borrower is required to provide pursuant to Section 9.03 of this Loan Agreement.

"Investment Grade Rating" means a credit rating of either BBB- .from
S&P or a credit rating ofBaa3 from Moody's.

   "Issuer Group" has the meaning set forth in Section 15.05 of this Loan
Agreement.
    
   "Issuer Person" has the meaning set forth in Section 15.05 of this Loan Agreement.

 "Land" has the meaning set forth in the Security Instrument.

             "Large Loan" has the meaning set forth in Section 15.05 of this Loan Agreement.

  "Lease" has the meaning set forth in the Security Instrument.

  "Lease Guaranty" has the meaning set forth in the Security Instrument.

"Leasing Commissions" means leasing commissions incurred by Borrower in connection with the leasing of any Individual Property or any portion thereof (including any so­ called "override" leasing commissions which may be due to any leasing or rental agent engaged by Borrower for the Property if an agent other than such agent also is entitled to a leasing commission, but excluding commissions due any principal, member, general partner or shareholder of Borrower or any Affiliate of Borrower).

"Lender" has the meaning in the introductory paragraph of this Loan Agreement.

"Lien" means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or otherwise), preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without

limitation, any conditional sale or other title retention agreement, the filing of any financing statement under the UCC or comparable law of any jurisdiction in respect of any of the foregoing and a mechanics' or materialmen's lien).

"Loan" means the aggregate of all principal and interest payments that accrue or are due and payable in accordance with the Loan Agreement, together with any other amounts due under the Loan Documents.  The terms "Loan" and "Debt" have the same meaning whenever used in the Loan Documents.

"Loan  Agreement" means this Loan Agreement.

"Loan  Documents" means, collectively, this Loan Agreement, the Note, the Security Instrument, the Assignment of Leases and Rents, the Assignment ofProperty Management Contract, the Environmental Indemnity, the Guaranty, and any and all other documents and agreements executed in connection with the Loan, as each such agreement may be modified, supplemented, consolidated, extended, restated or reinstated from time to time.

"Loan  to Value Ratio" means with respect to the specified period, the ratio obtained by dividing (a) the Maximum Loan Amount, by (b) either, as selected in Lender's discretion, the "as-is" or "as-stabilized" value of the Property as set forth in the appraisal obtained by Lender in connection with its underwriting of the Loan or any update thereto, whichever is most recent; provided however, that should the Operating Income or market rents for the Property as underwritten by Lender change by ten percent (10%) or more during the period in question, Lender may obtain a new appraisal at Borrower's expense.

   "Lock-out Period Expiration Date" has the meaning set forth in Section 2.05(b) hereof.

"Losses"  means any and all claims, suits, liabilities (including, without limitation, strict liabilities and liabilities under federal and state securities laws), actions, proceedings, obligations, debts, damages, losses, costs, expenses, fines, penalties, charges, fees, judgments, awards, and amounts paid in settlement of whatever kind or nature (including without limitation reasonable legal fees and other costs of defense).

"Major  Lease" means any Lease.

"Material Adverse Effect" means, with respect to any circumstance, act, condition or event of whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in conjunction with any other event, act, condition circumstances, whether or not related, in Lender's reasonable judgment, will result in a material adverse change in, or a materially adverse effect upon (a) the. business, operations, prospects or financial condition of Borrower or Guarantor; (b) the ability of Borrower or Guarantor to perform its obligations under any Loan Document to which it is a party; (c) the value or condition of the Property; (d) compliance of the Property with any Requirements of Law; (e) the validity, priority or enforceability of any Loan Document or the 

liens, rights (including, without limitation, recourse against the Property) or remedies of Lender
hereunder or thereunder; or (f) the occupancy rate of the Property.

  "Maturity Date" has the meaning set forth in Section 2.03(c) of this Loan Agreement.

"Maximum Loan  Amount" means the maximum principal amount of Eight Million Nine Hundred Thousand and 00/100 Dollars ($8,900,000.00), in lawful money of the United States of America, to be advanced to Borrower pursuant to this Loan Agreement. Reference in the Loan Agreement to "Maximum Loan Amount" mean the maximum principal amount, irrespective of actual principal amount outstanding or actually advanced to Borrower during the term of the Loan.

"Monthly Insurance Deposit" means, with respect  to the specified  period,  an amount  equal  to one-twelfth  (1/12)  of the Insurance  Premiums  that Lender  estimates  will be payable during the next ensuing twelve (12) months, subject to adjustment as set forth in Section
4.03(d) of this Loan Agreement.

"Monthly Replacement Reserve  Deposit" has the meaning set forth in Section
4.05(b) of this Loan Agreement, subject to adjustment as set forth in Section 4.05(d).

"Monthly Tax Deposit" means, with respect to the specified period, an amount equal to one-twelfth (1/12) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months, subject to adjustment as set forth in Section 4.02(d) of this Loan Agreement.

"Monthly TI/LC  Deposit" has the meaning set forth in Section 4.06(b) of this
Loan Agreement, subject to adjustment as set forth in Section 4.06(d).
"Moody's" means Moody's Investors Service, Inc. and any successor thereto. 
"Note" means the Promissory Note dated as of the Closing Date from Borrower to
the order of Lender in the original principal amount equal to the Maximum Loan Amount.

"Obligations" means the Loan, and all other obligations and liabilities of the Borrower to Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with the Loan the Loan Documents, whether on account of principal, interest, fees, indemnities, costs, expenses (including, without limitation, all reasonable fees and disbursements of legal counsel) or otherwise.

"OFAC List" means the list of specially designated nationals and blocked
persons subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of Foreign Assets Control and any other similar list maintained by the U.S. Treasury
Department, Office of Foreign Assets Control pursuant to any Requirements of Law, including,

without limitation, trade embargo, economic sanctions, or other prohibitions imposed by Executive Order ofthe President ofthe United States.  The OFAC List is accessible through the internet website www.treas.gov/ofac/t11sdn.pdf.

   "Open Date" has the meaning set forth in Section 2.05(a) of this Loan Agreement.

"Operating Account" means that certain bank account or those certain bank accounts in the name of or for the benefit of Borrower now or hereafter established and maintained in connection with the management of the Property during the term of the Loan. ·

"Operating Agreements" has the meaning set forth in the Security Instrument.

"Operating Expenses" means all cash expenses actually incurred by or charged to Borrower (appropriately pro-rated for any expenses that, although actually incurred in a particular period, also relate to other periods), with respect to the ownership, operation, leasing and management of the Property in the ordinary course of business, determined in accordance  with GAAP, and adjusted by Lender in accordance with Lender's customary underwriting  procedures and policies then in effect which Operating Expenses are also adjusted to include any underwritten reserves for Replacements, Tenant Improvements and Leasing Commissions  and any  other underwritten reserves as determined by Lender whether or not required to be reserved. Operating Expenses shall specifically exclude (1) costs of Tenant Improvements and Leasing Commissions, (2) capital expenditures, (3) depreciation, (4) payments made in connection with the payment of the outstanding principal balance of the Loan, (5) costs of Restoration following
a Casualty or Condemnation, (6) funds disbursed from any Reserve Account, and (7) any other
non-cash items.

"Operating Income" means all gross cash income, revenues and consideration received or paid to or for the account or benefit of Borrower resulting from or attributable to the operation or leasing of the Property determined in accordance with GAAP and adjusted by Lender in accordance with Lender's customary underwriting procedures and policies then in
effect but excluding any income or revenues from a sale, refinancing, Casualty or Condemnation,
payment of rents more than one (1) month in advance, lease termination payments, or payments from any other events not related to the ordinary course of operations of the Property.

"Organizational Chart" means the chart attached hereto as Exhibit D which shows all persons or entities having an ownership interest in Borrower and in the SPE Equity Owner.

"Other Charges" means all ground rents, maintenance charges, impositions (other than Taxes) and similar charges (including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property), now or hereafter assessed or imposed against the Property, or any part thereof, together with any penalties thereon.

        

"Partial Release" has the meaning set forth in Section 10.03 of this Loan Agreement.

 
"Partial Release Date" has the meaning set forth in Section 10.03 of this Loan 
Agreement.

"Partial Release Price" means the portion of the Maximum Loan Amount allocated to the following portions of the Property as set forth below:

Release Property     Partial Release Price

Baton Rouge, LA            $4,493,666.00

Richmond, IN            $4,406,334.00

"Payment Due Date" has the meaning set forth in Section2.03(b) of this Loan Agreement. It is the date that a regularly scheduled payment of principal and interest (or interest if the loan payments are interest-only) is due.

"Permitted Encumbrances" means only those exceptions shown in the Title
Insurance Policy and each other Lien which has been approved in writing by Lender.

"Permitted Transfer" means each of the following:

(a)       Transfers of Equity Interests which, in the aggregate over the tenn  of the Loan  (i) do not exceed forty-nine  percent  (49%)  of the total interests in Borrower  or in SPE Equity  Owner,  as  applicable;  (ii)  do  not  result  in  any  Person  holding  an  Equity  Interest  in Borrower  or SPE Equity Owner, as applicable,  which exceeds forty-nine percent  (49%)  of the total Equity Interests in Borrower or in SPE Equity Owner, as applicable; and (iii) do not result in a change of Control.

(b)     Transfers  with  respect  to  any  Person  whose  stocks  or  certificates   are traded on a nationally recognized stock exchange.

(c)     Transfers   which  have  been  approved  by  Lender  in  accordance   with
Section 10.02 of this Loan Agreement.

(d)     Permitted  Encumbrances.

(e)     All Transfers  of worn out or obsolete furnishings,  fixtures  or equipment that are promptly replaced with property of equivalent value and functionality.

(f)     All  Major  Leases  which  have  been  approved  by  Lender  in  accordance with this Loan Agreement.

(g)     All Leases which are not Major Leases and which have been approved by the Lender pursuant to Section 9.06 or that do not require Lender's approval pursuant to Section
9.06.

(h)       Notwithstanding  subparagraph  (a)  above,  (i) Transfers  by  devise  or by operation of law upon the death of a member, partner or stockholder of Borrower, any Guarantor or  any  member  or  partner  thereof,  or  (ii)  sale,  transfer  or  hypothecation  of  a membership, partnership  or  shareholder  interest  in  Borrower,  whichever  the  case  may  be,  by  a  current member, partner or shareholder, as applicable, to an entity under substantially  identical  control, an immediate family member (i.e., partners, spouses, siblings, children or grandchildren)  or such member, partner or .shareholder, or to a trust or other estate planning vehicle for the benefit of an immediate family member of such member, general partner or shareholder; such Transfers which are Permitted Transfers under this subparagraph (h) shall not be subject to any fees other than the reimbursement of Lender's reasonable out-of-pocket fees and expenses incurred in connection therewith.

"Person" means an individual, partnership, limited partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated  association, joint venture, governmental authority or other entity of whatever nature.

"Personal Property" has the meaning set forth in the Security Instrument.

"Prohibited Prepayment" has the meaning set forth in Section 2.05(d) of this
Loan Agreement.

"Prohibited Prepayment Fee" has the meaning set forth in Section 2.05(d) of this Loan Agreement.

"Property"  means  collectively,  all Individual  Properties  securing  the  Loan,  as
·described  on  Exhibit  G  attached  hereto,  or  one  or more  of  the  Individual  Properties,  as the context requires..

"Property Management Contract" means the agreement dated as ofMarch 1,
2007, between Borrower and Property Manager which provides for the management of the
Property for Borrower by Property Manager.

"Property Manager" means NZ1031 Manager LLC, a Michigan limited liability company.

"PV" has the meaning set forth in Section 2.05 (d).

"Rating Agencies" means Fitch, Inc., Moody's and S & P, or any successor entity of the foregoing, or any other nationally recognized statistical rating organization  to the extent that any of the foregoing have been or will be engaged by Lender or its designees in connection

with or in anticipation of Securitization or any other sale or grant of participation interest in the
Loan (or any part thereof).

"Rating Confirmation" means a written confirmation from each of the Rating Agencies (unless otherwise agreed by Lender) that an action shall not result in a downgrade, withdrawal or qualification of any securities issued in connection with a Securitization.

"Release" has the meaning set forth in Section 2.05(b) of this Loan Agreement.

"Release Date" means (a) in case of a Defeasance pursuant to Section 2.05(b), a date on which the Defeasance Collateral is to be delivered, or (b) in case of a prepayment pursuant to Section 2.05(c), a date (such date being a Payment Due Date) on which the Yield Maintenance Premium is to be delivered.

"Release Instruments" means all documents necessary to release the Property or in the case of a partial Defeasance, the Release Property, from the liens created by the Security Instrument and related UCC financing statements.

."Release Property" means each portion of the Property identified as "Release
Property" above in the definition of Partial Release Price.

"Rent Roll" means a written statement from Borrower, substantially in the fonn attached hereto as Exhibit E, detailing the names of all tenants of the Property, the portion of Property occupied by each tenant, the base rent and any other charges payable under each Lease, the tenn of each Lease, the begi1ming date and expiration date of each Lease, whether any tenant is in default under its Lease (and detailing the nature of such default), and any other information as is reasonably required by Lender, all certified by a Responsible Officer to be true, correct and complete.

"Rents" has the meaning set forth in the Security Instrument.

"Replacement Reserve Account" means an account held by Lender, or Lender's designee, in which the Monthly Replacement Reserve Deposits will be held, which shall not constitute a trust fund.

"Replacements" means the scheduled repairs and replacements to the Property identified on Exhibit F hereto.

"Requirements of Law" means (a) the organizational documents of an entity, and (b) any law, regulation, ordinance, code, decree, treaty, ruling or determination of an arbitrator, court or other Governmental Authority, or any Executive Order issued by the President of the United States, in each case applicable to or binding upon such Person or to
which such Person, any of its property or the conduct of its business is subject including, without
limitation, laws, ordinances and regulations pertaining to the zoning, occupancy and subdivision of real property.

"Reserve Accounts" means, individually and collectively, as the context requires, the Tax Escrow Account, the Insurance Premiums Escrow Account, the Immediate Repair Escrow Account, the Replacement Reserve Account and the TIILC Reserve Account.

"Reserve Item" means, individually and collectively, as the context requires, the
Immediate Repairs, the Replacements, the Tenant Improvements and the Leasing Commissions.

"Responsible Officer"  means, as to any Person, an individual who is a managing member, a general partner, the chief executive officer, the president or any vice president of such Person or, with respect to financial matters, the chief financial officer or treasurer of such Person or any other officer authorized by such Person to deliver documents with respect to financial matters pursuant to this Loan Agreement.

"Restoration" means the repairs, replacements, improvements, or rebuilding of or to the Property following a Casualty or Condemnation.

"Restoration Deficiency Deposit"  has the meaning set forth in Section 9.04(d) of this Loan Agreement.  All amounts deposited by Borrower with Lender as the Restoration Deficiency Deposit shall become a part of the Restoration Proceeds and disbursed by Lender for Restoration on the same conditions applicable to disbursement of Restoration Proceeds and, until so disbursed, are pledged to Lender as security for the Loan and Obligations.

"Restoration Holdback" has the meaning set forth in Section 9.04(e) of this
Loan Agreement.

"Restoration Proceeds" has the meaning set forth in Section 9.04(b) of this
Loan Agreement.

"S & P" means Standard & Poor's Ratings Services, a division ofThe McGraw­ Hill Companies, Inc., and any successor thereto.

"Securities Act" means the Securities Act of 1933 and any successor statute thereto and the related regulations issued thereunder, all as amended from time to time.

"Securities Exchange Act" means the Securities Exchange Act of 1934, and any successor statute thereto and the related regulations issued thereunder, all as amended from time to time.

"Securities Liabilities" has the meaning provided in Section 15.05 of this Loan Agreement.
"Securitization" or "Securitize" means the sale of the Loan, by itself or as part of pool with other loans, in a transaction whereby mortgage pass-through certificates or other securities evidencing  a beneficial interest, backed by the Loan or such pool of loans, will be sold as a rated or unrated public offering or private placement.

"Security Instrument" means individually or collectively, as the context requires, each Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing; or Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing; or Deed to Secure Debt, Assignment of Rents and Leases, Security Agreement and
Fixture Filing as applicable, encumbering the Property and executed by Borrower to Lender or to
a trustee for the benefit of Lender, as the case may be, to secure Borrower's payment of the Loan and performance of the Obligations.

"Single Purpose Entity" has the meaning set forth in Section 7.02 of this Loan Agreement.

"SPE Equity Owner" means Penn 1031 Mezz Two LLC, a Delaware limited 
liability company.

"Standard Lease Form" means, as applicable, the standard fonn of lease agreement used by Borrower for the rental of commercial units at the Property and the standard form of lease agreement used by Borrower for the rental of residential units at the Property, in each case in the form certified to Lender as of the Closing Date or subsequently approved by Lender in writing.
 
"Successor Borrower" has the meaning set forth in Section 2.05(b) of this Loan 
Agreement.

"Tax Code" means the Internal Revenue Code of 1986 and the related Treasury Department regulations issued thereunder, including temporary regulations, all as amended from time to time.

"Tax Escrow Account" means an account held by Lender, or Lender's designee, in which Borrower's initial deposit for Taxes made on the Closing Date and the Monthly Tax Deposits will be held, which shall not constitute a trust fund.

"Taxes" means all real estate taxes, government assessments or impositions, lienable water charges, lienable sewer rents, assessments due under owner association documents, ground rents, vault charges and license fees for the use of vault chutes and all other charges (other than the Other Charges), now or hereafter levied or assessed against the Land and Improvements.

"Tenant Improvements" means improvements made to the Property to prepare the same for tenant occupancy in connection with each Lease and made by Borrower in conformity with the terms of the related Lease and this Loan Agreement.

"TI/LC Reserve Account" means an account held by Lender, or Lender's designee, in which the Initial TIILC Deposit and the Monthly TI/LC Deposits will be held, which shall not constitute a trust fund.

"Title Insurance Policy" means the mortgagee title insurance policy obtained by Lender in connection with the Loan, and, until the issuance of such policy, the commitment for title insurance as marked-up as of the Closing Date, in either case in form and substance (with such endorsements and affirmative coverages) as is satisfactory to Lender, insuring that the Security Instrument constitutes a perfected first Lien against the Property in the Maximum  Loan Amount, subject only to Permitted Encumbrances.

"Transfer" means any action other than a Permitted Transfer by which either (a) the legal or beneficial ownership of the Equity Interests in Borrower or in SPE Equity Owner or (b) the legal or equitable title to the Property, or any part thereof, or (c) the cash flow from the Property or any portion thereof, are sold, assigned, transferred, hypothecated, pledged or otherwise encumbered or disposed of, in each case (a), (b) or (c) whether undertaken, directly or indirectly, or occurring by operation oflaw or otherwise, including, without limitation, each of the following actions:

(i)        the sale, conveyance,  assignment,  grant of an option with respect to, mortgage, deed in trust, pledge, grant of a security interest in, or any other transfer, as security or otherwise, of the Property or with respect to the Leases or Rents (or any thereof);

(ii)       the  grant  of  an easement  across  the  Property  (other  than  minor easements not having a Material Adverse Effect) or any other agreement granting rights in or restricting the use or development of the Property (including, without limitation, air rights);

(iii)      an installment  sale wherein  Borrower  agrees to sell the Property for a price to be paid in installments;

(iv)      an agreement by Borrower leasing  all or a substantial  part of the Property   for  other  than  actual  occupancy   by   a  space   tenant thereunder; or

		
	(v) 
	the issuance of additional partnership, membership  or other equity interests, as applicable.

"UCC" means the Uniform  Commercial Code in effect in the State where the Property is located, as from time to time amended or restated.  For purposes of the UCC's application to the Reserve Accounts, the parties agree that the Reserve Accounts shall be deemed located in the state where the Property is located.

 
"Undefeased Note" has the meaning set forth in Section 2.05(b)(v) of this Loan 
Agreement.
 
"Underwriter Group" has the meaning provided in Sectionl5.05 of this Loan 
Agreement.

 
"Waiver Criteria" has the meaning provided in Section 4.0l(h) of this Loan  
Agreement.

"Walgreens" has the meaning provided in Section 4.02(h)(ii) of this Loan 
Agreement. 

"Walgreens Leases" has the meaning provided  in Section 4.02(h)(ii) of this 
Loan Agreement. 

"Yield Maintenance Premium" has the meaning set forth in Section 2.0 (d).

[Remainder of page is blank; signatures appear on next page.]

IN WITNESS WHEREOF, Lender and Borrower hereby sign, seal and deliver this Loan Agreement.   By signing below on behalf of Borrower, SPE Equity Owner also consents, in its individual  capacity, to the obligations of SPE Equity Owner set forth in Sections 7.02(b), 8.21, 9.ll(c) and Article 15 of this Loan Agreement.

BORROWER:

PENN 1031 LLC, a Michigan limited liability company

By: Penn 1031 Mezz Two LLC, a Delaware 
       limited liability company, its Manager

By: /s/ Norbert A. Zuckerman
       Norbert A. Zuckerman, Manager

Borrower's Tax ID Number: 20-8568321
Borrower's State Organizational  lD No.: D I293M

[Signatures continue on following page]

#1125280 .... Loan Agreement (Walgreens Pool II)

LENDER:

CAPMARK BANK, a Utah industrial bank

By: /s/ Keith E. Armstrong
Name: Keith E. Armstrong
Title: Limited Signatory

Attachments:

Exhibit A    Compliance Certificate Form
Exhibit B    Disbursement Request Form 
Exhibit C    Immediate Repairs
Exhibit D    Organizational Chart
Exhibit E    Rent Roll 
Exhibit F    Replacements
Exhibit G    Individual PropertyUnited Oil Portfolio PSA - Exhibit 10.8

Exhibit 10.8

PURCHASE AND SALE AGREEMENT

SELLER:    CF United PropCo LLC,
a Delaware limited liability company

PURCHASER:    ARCP Acquisitions, LLC,
a Delaware limited liability company

September 10, 2014

REGARDING CERTAIN REAL PROPERTY AND IMPROVEMENTS

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made effective as of September 10, 2014 (the “Effective Date”), by and between CF Untied PropCo LLC, a Delaware  limited  liability  company  (“Seller”),  and  ARCP  Acquisitions,  LLC,  a  Delaware limited liability company (“Purchaser”).

RECITALS

A.        Seller is the owner of (i) certain parcels of real estate generally described on Exhibit A attached hereto (collectively, the “Real Properties”, and, each individually, a “Real Property”), (ii) the buildings, structures and other improvements located thereon, including but not limited to all site work, landscaping, fixtures and utilities (the “Buildings”), (iii) the machinery,  equipment  and  systems  necessary  for  the  operation  of  the  Buildings  that  are “fixtures” pursuant to applicable law, including, but not limited to any built-in equipment, compressors, appliances, engines, electrical, plumbing, heating, ventilation and air-conditioning equipment, fire sprinklers and fire suppression equipment, lighting including emergency lighting, security cameras and systems, paging and sound systems, walk-in coolers and refrigerated cases, built-in shelving, awnings, and supports for signs (but specifically excluding any such items that are not “fixtures” pursuant to applicable law, fuel tanks, fuel dispensers, display cases, counters, shelves, racks and billboards) (the “Fixtures”), and (iv) attendant rights appurtenant to any of the foregoing (collectively, the Real Properties, Buildings, Fixtures and Seller’s attendant rights appurtenant to the Real Properties, Buildings, Fixtures are referred to herein as the “Properties”, and, where reference is being made to a single Real Property, the portion of the Buildings and Fixtures thereon and Seller’s attendant rights appurtenant thereto, as a “Property”); and

B.        Seller desires to sell to Purchaser the Properties in accordance with the terms and subject to the conditions of this Agreement.

NOW, THEREFORE, in reliance on the foregoing and in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt  and  sufficiency  of  which  are  hereby  acknowledged,  Seller  and  Purchaser  agree  as follows:

1.         PURCHASE AND SALE OF THE PROPERTIES.  Subject to and in accordance with the terms and conditions set forth in this Agreement, Purchaser shall purchase from Seller and Seller shall sell to Purchaser the Properties.

2.         PURCHASE PRICE.  The total consideration to be paid by Purchaser to Seller for the Properties is Two Hundred Fifty Million and 00/100 Dollars ($250,000,000.00), payable in cash or other immediately available funds in accordance with the following provisions (the “Purchase Price”).   The Purchase Price shall be allocated among the Properties as set forth on Exhibit A.

2.1       Earnest Money.  Within three (3) business days after the Effective Date, Purchaser shall deliver to First American Title Insurance Company (Phoenix, AZ) (“Escrow Agent”) the sum of Two Million Five Hundred Thousand and 00/100 Dollars ($2,500,000.00)

(the “Earnest Money”) by cashier’s check or other immediately available funds.  The Earnest Money shall be invested as Purchaser so directs.   Any and all interest earned on the Earnest Money shall be reported to Purchaser’s federal tax identification number.  Except as expressly set forth herein to the contrary, the Earnest Money shall become nonrefundable upon the expiration of the Due Diligence Period (as defined in Section 8.1 below) if Purchaser does not notify Seller in writing on or before the expiration of the Due Diligence Period that Purchaser elects to terminate the transaction.  Notwithstanding the prior sentence, if the transaction fails to close because of Seller’s default under this Agreement or failure of a condition precedent to Purchaser’s obligations to close, the Earnest Money shall be returned to the Purchaser by Escrow Agent.  If the transaction closes in accordance with the terms of this Agreement, then Escrow Agent shall deliver the Earnest Money to Seller at Closing as payment toward the Purchase Price.

3.    TITLE POLICIES; SURVEYS.

3.1       Purchaser acknowledges and agrees that Seller has delivered to Purchaser copies of the owner’s policies of title insurance in favor of the Seller with respect to each Property (the “Existing Title Policies”) issued by First American Title Insurance Company (Phoenix, AZ) (the “Title Insurer”), and copies of existing surveys of each Property in Seller’s possession or control (collectively, the “Existing Surveys”).

3.2       Purchaser  will  promptly  cause  to  be  ordered,  for  each  Property,  a commitment (the “Title Commitment”) for a new owner’s policy of title insurance for each Property to be issued to the Purchaser in the amount of the Purchase Price as allocated to the applicable  Property,  together  with  such  endorsements  as  Purchaser  may  reasonably  require (each, a “Title Policy”, collectively, the “Title Policies”), in form and substance reasonably approved by Purchaser prior to the end of the Due Diligence Period (as defined in Section 8.1 below).  Seller shall use commercially reasonable efforts in cooperating with Purchaser to (i) remove any exceptions that can be reasonably removed from the Title Commitment, including, without limitation, by Seller’s delivery of a customary owner’s title affidavit or gap indemnity in form and substance reasonably acceptable to Seller, and (ii) address and resolve any title, survey or zoning questions and issues related to the Properties.  Notwithstanding the foregoing, Seller shall be required to satisfy the following items at or prior to Closing (i) monetary liens, encumbrances or security interests against Seller and/or Seller’s interest in any of the Properties that were voluntarily created by Seller, (ii) encumbrances that have been voluntarily placed against any of the Properties by Seller after the Effective Date without Purchaser’s prior written consent, (iii) exceptions that can be removed from the Title Commitment by Seller’s delivery of a customary owner’s title affidavit in the form attached hereto as  Exhibit D or gap indemnity in the form attached hereto as  Exhibit E, and (iv) any exceptions that Seller agrees during the Due Diligence Period, in writing, to cure or satisfy at or prior to Closing (all of the foregoing hereinafter collectively referred to as the “Seller’s Required Removal Items”).

3.3       Purchaser shall not be obligated to proceed with the Closing unless and until the Title Insurer is prepared to issue at Closing Title Policies based on the amount of the Purchase Price as allocated to each Property in form and substance reasonably approved by Purchaser prior to the end of the Due Diligence Period.

4.         CLOSING.  The payment of the Purchase Price, the transfer of ownership of the Properties, and the satisfaction of all other terms and conditions of the transaction contemplated by this Agreement (the “Closing”) shall occur ten (10) days after the expiration of the Due Diligence Period or such earlier date mutually agreed to by Purchaser and Seller (such day being sometimes referred to as the “Closing Date”), through escrow at the office of the Title Insurer. If the date for Closing above provided for falls on a Saturday, Sunday or legal holiday, then the Closing Date shall be the next business day.   Seller and Purchaser shall endeavor to have the Closing no later than September 30, 2014.  The Closing shall be effective as of 11:59 p.m. (PST) on the day preceding the Closing Date (the “Effective Time”).  Notwithstanding the foregoing, Purchaser  shall  have  the  right  to  extend  the  Closing  Date  (the  “Closing  Date  Extension Option”) for up to fifteen (15) business days by  delivering written notice (the “Extension Notice”) to Seller at least three (3) business days prior to the initially scheduled Closing Date. Purchaser’s failure to deliver the Extension Notice in accordance with the terms of the immediately preceding sentence shall be deemed Purchaser’s waiver of the Closing Date Extension Option.  In the event Purchaser exercises the Closing Date Extension Option, the Closing Date shall mean the closing date specified in the Extension Notice.

4.1       Seller’s Closing Deliveries. At Closing, Seller shall execute and deliver or cause to be delivered to Purchaser (either through escrow or as otherwise provided below) each of the documents described below: (a) one original special warranty deed for each Property conveying fee simple title to each Property to Purchaser (each, a “Deed”); (b) one original Seller’s non-foreign affidavit in the form attached hereto as  Exhibit C, which shall be executed and delivered by the transferor (within the meaning of Code Section 1445) of the Properties; (c) counterparts of the Closing Statement (as defined in Section 4.4 below); (d) such evidence of Seller’s power and authority to execute this Agreement and related documents as Purchaser may reasonably request; (e) any transfer tax statement and affidavit, declaration and filing that may be required by the state, county and municipality, as applicable, in which a Property is located in order to record each Deed; (f) such other instruments and documents which shall be necessary in connection with the transaction contemplated herein and which do not impose, create, or potentially create any liability or expense upon Seller not expressly required under this Agreement;  (g)  an  assignment  and  assumption  of  each  Master  Land  and  Building  Lease identified on  Schedule 4.1, as may be modified prior to Closing pursuant to a lease amendment acceptable to Seller, Tenant (as hereinafter defined) and Purchaser (each, a “Master Lease” and collectively,  the  “Master  Leases”)  in  the  form  attached  hereto  as   Exhibit  B  with  such modifications as are necessary to be recorded in each county in which a Property is located (collectively, the “Lease Assignments”) executed by Seller; (h) Seller executed notices of sale with respect to the Properties; (i) one original assignment agreement for each pool of Properties covered by a Master Lease transferring to Purchaser Seller’s right, title and interest in and to any permits, licenses, warranties and guaranties relating to such Properties, if any, in the form attached hereto as  Exhibit F; (j) an original estoppel certificate with respect to each Master Lease executed by Apro, LLC, a Delaware limited liability company (“Tenant”) in the form required by such Master Lease and dated no earlier than five (5) days prior to Closing (each, a “Tenant Estoppel” and collectively, the “Tenant Estoppels”); and (k) an original estoppel certificate executed by all other parties (to the extent Purchaser prepares and provides to Seller such estoppel certificate in accordance with Section 12.4 and to the extent such parties are required to execute such an estoppel certificate upon the request of Seller) to any applicable reciprocal  easement  agreement  or  declaration  of  covenants,  conditions  and/or  restrictions

affecting any of the Properties, if any, addressed or certified to Purchaser and Purchaser’s lender (if any) stating that such instrument is in full force and effect and is not modified (except as disclosed in such estoppel certificate) and, to the best knowledge of the party giving the estoppel, the other party or parties thereto is/are not in default under the applicable instrument and all amounts, if any, owing under the applicable agreement have been paid in full; notwithstanding any other statement in this Section 4, in the event that Seller is unable to deliver any estoppel certificate required under this clause (k) prior to the Closing Date, the Closing Date shall not be postponed, but Seller shall use its best efforts to assist Purchaser in obtaining such estoppel certificate as soon after the Closing Date as commercially practicable. Notwithstanding anything to the contrary herein, Seller shall deliver the Tenant Estoppels to Purchaser at least five (5) days prior to the Closing Date.   Seller’s obligation, if any, to provide the files and materials listed herein shall survive the Closing.  The Closing Statement may be signed in electronic or facsimile counterparts on the Closing Date.

4.2       Purchaser’s Closing Deliveries.   At Closing Purchaser shall deliver or cause to be delivered to Seller (a) the Purchase Price in accordance with Section 2; (b) counterparts of the Closing Statement, (c) such evidence of Purchaser’s power and authority to execute this Agreement and related documents, as Seller may reasonably request; (d) Purchaser executed notices of sale with respect to the Properties; (e) Purchaser executed counter-parts of the  Lease  Assignments;  (f)  a  Purchaser  executed  W-9;  (g)  any  transfer  tax  statement  and affidavit, declaration and filing that may be required to be executed by Purchaser by the state, county and municipality, as applicable, in which a Property is located in order to record each Deed; and (h) such other instruments and documents which shall be necessary in connection with the transaction contemplated herein and which do not impose, create, or potentially create any liability or expense upon Purchaser not expressly required under this Agreement. Purchaser’s obligation, if any, to provide the files and materials listed herein shall survive the Closing.  The Closing Statement may be signed in electronic or facsimile counterparts on the Closing Date.

4.3       Each of Purchaser and Seller shall execute and deliver all instruments and certificates as are reasonably requested by the other party and that are necessary to enable Purchaser  and  Seller  to  comply  with  the  requirements  of  Sections  4.1(e)  and  4.2(g). Furthermore, each of Purchaser and Seller shall execute and deliver all instruments and other certificates as could enable the parties to evidence any available exemption from, or reduction with respect to, the amount of any such transfer taxes owed, which exemption or reduction Seller and/or Purchaser is legally entitled to claim, as long as such instruments and certificates do not impose, create, or potentially create any liability or expense upon Purchaser or Seller not expressly required under this Agreement.  This Section 4.3 shall survive the Closing.

4.4       Closing Prorations and Adjustments.   The provisions of this Section 4.4 shall survive the Closing.  Seller shall cause the Escrow Agent to prepare a statement of the prorations and adjustments required by this Agreement (the “Closing Statement”), and submit Seller’s best effort estimate of the Closing Statement to Purchaser for approval at least two (2) business days prior to the Closing Date.  The items listed below are to be equitably prorated or adjusted as of the Effective Time, it being understood that for purposes of prorations and adjustments, Seller shall be deemed the owner of the Properties on or prior to the Effective Time and Purchaser shall be deemed the owner of the Properties after the Effective Time.

4.4.1    Rent.  The base rent payable by the Tenant for the calendar month in which the Closing occurs shall be prorated as of the Effective Time on the basis of the number of days of such month the Properties will have been owned by Purchaser and Seller, respectively. If the Closing Date is on or after the 20th day of the calendar month in which the Closing Date occurs, the monthly base rent due to Purchaser for the first full calendar month (the “Initial Rent”) under the terms of the Master Leases shall be credited to Purchaser at the Closing (in such event, Tenant shall pay the Initial Rent to Seller, and, notwithstanding the terms of the Master Leases, shall not be obligated to make a payment for the Initial Rent to Purchaser). In the event  that  Purchaser  is  credited  for  any  amount  on  the  Closing  Date  that  Purchaser  is subsequently paid by the Tenant, Purchaser shall promptly refund such amount to Seller. Notwithstanding  any  other  provision  in  this  Agreement,  Purchaser’s  obligations  under  this Section 4.4 of the Agreement shall survive Closing for a period of sixty (60) days.

If any item of income or expense set forth in this Section 4.4 is subject to final adjustment after Closing, then Seller and Purchaser shall make, and each shall be entitled to, an appropriate  reproration  to  each  such  item  promptly  when  accurate  information  becomes available, subject to Section 4.6 below.  Any amounts due from one party to the other as a result of such reproration shall be paid promptly in cash to the party entitled thereto.  Seller and Purchaser hereby covenant and agree to make available to each other for review such records as are necessary to complete such reprorations.  No proration shall be made of real estate and personal property taxes, utility charges, or maintenance expenses with respect to the Properties (Seller hereby representing and warranting to Purchaser that Tenant is responsible for all such charges, taxes and expenses under the Master Leases).  The foregoing provisions of this Section
4.4 shall survive the Closing.

4.5    Transaction Costs.

4.5.1    Seller’s Costs.  Seller shall pay (i) the fees and disbursements of Seller’s counsel, (ii) one-half of the fees and costs due Escrow Agent for its services, (iii) costs of releasing all liens, judgments and other encumbrances that are to be released and of recording such releases, if any, and (iv) the costs of any transfer taxes (determined based on the allocated Purchase Prices set forth on Exhibit A) or recording fees, if any.

4.5.2  Purchaser’s Costs.    Purchaser shall pay (i) the fees and disbursements of Purchaser’s counsel, (ii) one-half of the fees and costs due Escrow Agent for its services, (iii) all costs associated with Purchaser’s due diligence, including the costs of surveys, Phase I environmental reports and appraisals ordered by Purchaser, (iv) all costs associated with the issuance of the Title Policies, as described in Section 3, (v) all costs associated with extended coverage and the issuance of endorsements  to the Title Policies, and (vi) the cost of any lender’s policy of title insurance.

4.5.3    The foregoing costs in Sections 4.5.1 and 4.5.2 shall be paid by the responsible party whether or not Closing occurs, but only to the extent actually incurred by the responsible party.

4.6       Reprorations.  Notwithstanding anything contained herein to the contrary, all reprorations contemplated by this Agreement shall be completed within one (1) year after Closing.  The provisions of this Section 4.6 shall survive the Closing for one (1) year.

5.         CASUALTY LOSS AND CONDEMNATION.  If, prior to Closing, any Property, or any part thereof shall be condemned (which shall include the institution of any condemnation proceedings, notice of such action or proceeding being given or threatened or any conveyance made in lieu of condemnation proceedings) or destroyed or damaged by fire or other casualty, Seller shall promptly so notify Purchaser.  In the event of a material loss (hereinafter defined), Purchaser shall have the option to terminate this Agreement with respect to the affected Property by giving notice to Seller within fifteen (15) days after Seller’s request that the option be exercised (but no later than the Closing).  If the condemnation, destruction or damage does not result in a material loss or if it results in a material loss and Purchaser elects not to terminate this Agreement with respect to the affected Property, then Seller and Purchaser shall consummate the transaction contemplated by this Agreement notwithstanding such condemnation, destruction or damage, and Purchaser shall be entitled to (i) in the event of a condemnation, any condemnation award to which Seller would be entitled, or (ii) in the event of damage or destruction, any insurance proceeds to which Seller would be entitled and a credit against the Purchase Price in the amount of the deductible under any policies of insurance.  If Purchaser elects to terminate this Agreement with respect to the affected Property in accordance with this Section 5, the Purchase Price shall be reduced by the amount of the Purchase Price allocated to the affected Property as set forth on  Exhibit A, and neither party shall have any further rights or obligations under this Agreement with respect to the affected Property except as otherwise provided for in this Agreement.  For purposes of this Section 5, a “material loss” means if (i) the damage caused by the casualty exceeds $250,000.00, (ii) the casualty or taking results in termination of the Master Lease with respect to the affected Property pursuant to Section 12.02 thereof or Tenant having the right to a reduction in the base rent payable under such Master Lease pursuant to Section 12.05 thereof, and Tenant does not waive such rights in writing prior to Closing, or (iii) the taking would have a material adverse effect on parking, access or signage for the affected Property.

6.        BROKERAGE.  Seller and Purchaser shall each indemnify and hold the other harmless from and against any and all claims of all brokers and finders claiming by, through or under the indemnifying party and in any way related to the sale and purchase of the Properties, this Agreement or otherwise, including, without limitation, attorneys’ fees and expenses incurred by the indemnified party in connection with such claim.

7.    DEFAULT AND REMEDIES.

7.1       Purchaser’s  Remedies.    IN  THE  EVENT  OF  A  SELLER  DEFAULT UNDER ANY OF THE TERMS OF THIS AGREEMENT ON OR PRIOR TO THE CLOSING DATE, AND AS A RESULT THEREOF THE CLOSING DOES NOT OCCUR WITH RESPECT TO ANY PROPERTY, PURCHASER, AS PURCHASER’S SOLE REMEDY, SHALL BE ENTITLED, AT ITS OPTION, TO (A) SPECIFIC PERFORMANCE OF THIS AGREEMENT, (B) TERMINATE THIS AGREEMENT IN WHOLE AND RECEIVE THE RETURN OF THE 

EARNEST MONEY, TOGETHER WITH SELLER’S PAYMENT TO PURCHASER   OF   ALL   REASONABLE   OUT-OF-POCKET   THIRD   PARTY   COSTS

INCURRED BY PURCHASER AND DIRECTLY RELATED TO THE PREPARATION AND NEGOTIATION  OF  THIS  AGREEMENT  AND  THE  INSPECTION  ACTIVITIES, INCLUDING  WITHOUT  LIMITATION REASONABLE ATTORNEYS'  FEES (AND SELLER SHALL PAY SUCH COSTS WITHIN THIRTY (30) DAYS AFTER RECEIPT OF A STATEMENT  FROM PURCHASER  DETAILING SUCH COSTS),  OR  (C)  TERMINATE THIS AGREEMENT IN PART WITH RESPECT TO THE PROPERTY OR PROPERTIES AFFECTED BY THE SELLER DEFAULT AND PROCEED TO CLOSING WITH RESPECT TO THE REMAINDER OF THE PROPERTIES WITH THE PURCHASE PRICE REDUCED BY THE ALLOCATED PURCHASE PRICE FOR ANY AFFECTED PROPERTY OR PROPERTIES IN ACCORDANCE WITH EXHIDIT A AND SELLER REIMBURSING PURCHASER FOR ITS REASONABLE OUT-OF-POCKET THIRD PARTY COSTS INCURRED BY PURCHASER WITH RESPECT TO THE AFFECTED PROPERTY OR PROPERTIES, AND THE INSPECTION ACTIVITIES RELATING TO THE AFFECTED PROPERTY OR PROPERTIES, EXCLUDING ANY ATTORNEYS'  FEES.   THE PARTIES ACKNOWLEDGE AND AGREE THAT, IN THE EVENT THAT PURCHASER CHOOSES THE   REMEDY  PROVIDED  FOR   IN  CLAUSE  (B)  OR  (C)   OF  THE   PRECEDING SENTENCE, THE PAYMENT OF OUT-OF-POCKET COSTS AND THE RETURN OF THE EARNEST MONEY (AS CONTEMPLATED BY CLAUSE (B)) SHALL REPRESENT FULL COMPENSATION  AND  LIQUIDATED  DAMAGES  TO  PURCHASER  IN  THE  EVENT THAT THE CLOSING FAILS TO OCCUR DUE TO THE DEFAULT OF SELLER. EXCEPT AS  EXPRESSLY  SET  FORTH  IN  THIS  SECTION  7.1,  PURCHASER  WAIVES  ALL RIGHTS TO DAMAG I!   OF ANY OTHER KIND OR NATURE, INCLUDING, WITHOUT LIMITATION,     C5J PENSATORY,     DIRECT,     INDIRECT,     CONSEQUENTIAL, EXEMPLARY OR         ITIVE DAMAGES.

/s/ JP    /s/ TW    Seller's Initials                         Purchaser's Initials

7.2       Seller's  Remedies.   Purchaser and Seller acknowledge that it would be extremely impractical and difficult to ascertain the actual damages which would be suffered by Seller if Purchaser fails to consummate the purchase and sale contemplated herein for any reason other than Seller's default hereunder in any material respect or the failure of condition precedent to Purchaser's obligation to close hereunder.  Purchaser and Seller have considered carefully the loss to Seller occasioned by taking the Properties off the market as a consequence of the negotiation and execution of this Agreement, the expenses of Seller incurred in connection with the preparation of this Agreement and Seller's  performance hereunder, and the other damages, general  and special, which Purchaser and Seller realize and recognize Seller will sustain but which Seller cannot at this time calculate with absolute certainty.    Based on all those considerations, Purchaser and Seller have agreed that the damage to Seller in such event would reasonably be expected to be equal to the sum of the Earnest Money.  Accordingly, if Purchaser defaults  on  its  obligation  to  consummate  the  purchase of  any  or  all  of  the  Properties  in accordance  with the terms of this Agreement, then Seller's sole and exclusive remedy shall be the right to retain the Earnest Money as full and complete liquidated damages.

THE  PARTIES FURTHER  ACKNOWLEDGE AND AGREE THAT (A) PURCHASER SEEKS  TO LIMIT  ITS LIABILITY UNDER THIS AGREEMENT  TO THE AMOUNT OF THE EARNEST MONEY IN THE EVENT THIS AGREEMENT IS TERMINATED

AND  THE  TRANSACTION CONTEMPLATED  BY  THIS AGREEMENT DOES  NOT CLOSE DUE  TO  A DEFAULT OF  PURCHASER UNDER  THIS  AGREEMENT, AND (B) THE  PAYMENT OF  SUCH  LIQUIDATED DAMAGES IS  NOT  INTENDED AS A FORFEITURE  OR   PENALTY WITHIN  THE   MEANING  OF  CALIFORNIA CIVIL CODE  SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO  SELLER  PURSUANT TO  CALIFORNIA  CIVIL   CODE   SECTIONS
1671, 1676 AND 1677.

/s/ JP    /s/ TW    Seller's Initials    Purchaser's Initials

7.3       Post-Closing Remedies.  After Closing, except for remedies that cannot be waived as a matter of law and injunctive and provisional relief, Section 10 shall be the exclusive remedy for breaches of this Agreement (including any covenant, obligation, representation or warranty contained in this Agreement or in any certificate delivered pursuant to this Agreement).

8.     CONDITIONS PRECEDENT.

8.1       Due Diligence  Period. Purchaser  shall have until 5:00 p.m., pacific time on September  30, 2014  (the period  beginning  on the Effective  Date and ending  at 5:00p.m., pacific time on September  30, 2014, the "Due  Diligence  Period") to conduct and approve any investigations, studies or tests desired by Purchaser, in Purchaser's sole discretion, to determine the feasibility of acquiring the Properties.  During the Due Diligence Period and subject to the restrictions  and  limitations  set  forth  in  this  Section  8.1,  upon  notice,  Seller  shall  provide Purchaser  or  its  designated  representatives  access  to  the  Properties  at  reasonable  times  to conduct,  at Purchaser's sole cost and expense, its due diligence  with respect to the Properties. Seller  shall  have  an  ongoing  obligation  during  the  pendency  of  this  Agreement  to  provide Purchaser with any Property Information that is created or modified in any respect after the commencement  of the Due Diligence  Period, however,  the provision  of any new, modified or updated  Property  Information  shall  not  reset  or  otherwise  change  the  start  date  of  the  Due Diligence Period. If Purchaser determines (in its sole discretion) that any of the Properties are unsuitable  for their purposes  for any reason, then Purchaser  may terminate  this Agreement  in whole by written notice to Seller given at any time prior to the expiration of the Due Diligence Period. In addition, in the event that (i) Purchaser has a commercially  reasonable objection to the title, survey, environmental, financial or zoning information contained in, or derived from, the Property Information (as hereinafter defined) or the reports and studies obtained or conducted by Purchaser during the Due Diligence Period, or (ii) Purchaser  discovers a defect in any Property that materially  diminishes the value or marketability  of such Property, Purchaser shall have the right to partially terminate this Agreement with respect to up to five (5), and not more than five (5), Properties  by written  notice  to Seller given at any time prior to the expiration  of the Due Diligence Period (the "Partial Termination Right").  If Purchaser terminates this Agreement in whole, then the Earnest Money less one-half  of the escrow fees shall be returned to Purchaser, and neither party shall have any further rights or obligations  under this Agreement except those which  expressly  survive  termination  of  this  Agreement.     If Purchaser  exercises  its  Partial Termination  Right,  the Purchase  Price shall be reduced  by the  amount of the Purchase  Price allocated  to such Property  as set forth on Exhibit A, and neither  party shall have any further rights or obligations  under this Agreement  with respect to such Property. Purchaser's failure to

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so terminate this Agreement within the Due Diligence Period shall be deemed a waiver by Purchaser of the condition contained in this Section 8.1, and thereafter the Earnest Money shall not be refunded to Purchaser except pursuant to another express provision of this Agreement. Purchaser’s right of inspection pursuant to this Section 8.1 is and shall remain subject to the rights of tenants of the Properties and Purchaser shall use reasonable efforts to minimize interference with such tenants.  Notwithstanding any other provision of this Agreement, no inspection of the Properties shall be undertaken without two (2) business days prior written notice to Seller.  Seller or Seller’s representative shall have the right to be present at any or all inspections.  No inspection shall involve the taking of samples or other physically invasive procedures without the prior consent of Seller.  Any inspection or test shall be performed by a person (a) properly licensed and qualified and (b) who has obtained all appropriate permits for performing such inspection or test.   Upon the completion of any inspection or test of any Property, Purchaser shall restore such Property to its condition prior to such inspection or test. Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  Purchaser  shall indemnify, defend (with counsel reasonably acceptable to Seller) and hold Seller and its past or present affiliates, equity holders, employees, directors, officers, agents, representatives, tenants and successors and assigns harmless from and against any and all loss, cost, expense, liability, damage, demand, proceeding, obligation, cause of action or claim (whether known or unknown, absolute or contingent, both at law and in equity, and including, without limitation, reasonable attorneys’ fees incurred in connection therewith) arising out of or resulting from Purchaser’s right of entry upon and inspection and testing of the Properties as provided for in this Section
8.1, and such indemnity shall survive the Closing and any termination of this Agreement.

8.2       Conditions  to  Purchaser’s  Obligation  to  Close.     The  obligations  of Purchaser under this Agreement are subject to the fulfillment, at or before the Closing, of the following conditions (which may be waived in whole or in part by Purchaser in its sole discretion):

8.2.1    Tenant  Estoppels.    Seller  shall  have  caused  to  be  delivered  to
Purchaser, at least five (5) days prior to the Closing Date, the Tenant Estoppels.

8.2.2    Seller’s Performance.  Seller shall have performed all covenants and obligations required by this Agreement to be performed or delivered by it on or before the Closing Date.

8.2.3   Accuracy of Seller’s Representations and Warranties.  Each of Seller’s representations and warranties set forth in Section 9.1 below shall be materially true and correct as of the Closing, as modified by any Pre-Closing Disclosures (as defined in Section 9.2 below).  Notwithstanding the foregoing, if Seller makes any Pre-Closing Disclosure to Purchaser that has a material adverse effect on the Property or Properties corresponding to such Pre- Closing Disclosure or Seller’s ability to consummate the transactions contemplated by this Agreement, Purchaser shall have the right to terminate this Agreement in whole or in part with respect to the Property or Properties corresponding to such Pre-Closing Disclosure, by delivering written notice thereof to Seller on or prior to the earlier of (a) the Closing Date, or (b) the fifth (5th) business day after Purchaser receives written notice of such Pre-Closing Disclosure.  If Purchaser terminates this Agreement in whole, 

then the Earnest Money less one-half of the escrow fees shall be returned to Purchaser, and neither party shall have any further rights or

obligations under this Agreement except those which expressly survive termination of this Agreement.  If Purchaser elects to terminate this Agreement in part with respect to the Property or Properties corresponding to such Pre-Closing Disclosure, the Purchase Price shall be reduced by the amount of the Purchase Price allocated to such Property or Properties as set forth on Exhibit A, and neither party shall have any further rights or obligations under this Agreement with respect to such Property or Properties.  If Purchaser does not terminate this Agreement in whole or in part pursuant to its rights under this Section 8.2.3, then such representations and warranties  shall  be  deemed  modified  to  conform  them  to  the  Pre-Closing  Disclosure.    If Purchaser elects to terminate this Agreement in whole or in part pursuant to its rights under this Section 8.2.3 and the condition or event that gave rise to the Pre-Closing Disclosure made by Seller was caused by an affirmative act of Seller (and such act does not constitute a default that would entitle Purchaser to remedies under Section 7.1), then (i) if terminated in whole, Seller shall be obligated to reimburse Purchaser for its reasonable third party out-of-pocket expenses incurred  by  Purchaser  and  directly  related  to  its  investigation  of  the  Properties  and  the transaction contemplated by this Agreement and no portion of the escrow fees shall be deducted from the Earnest Money to be returned to Purchaser, or (ii) if terminated in part, Seller shall be obligated to reimburse Purchaser for its reasonable third party out-of-pocket expenses incurred by Purchaser and directly related to its investigation of the affected Properties.  The provisions of this Section 8.2.3 shall survive termination of this Agreement by Purchaser.

8.2.4    Purchase  Options.     Seller  shall  have  obtained  a  waiver  or termination of each Purchase Option (as hereinafter defined) on or prior to the Closing Date. Notwithstanding anything to the contrary herein, in the event Seller fails to obtain a waiver or termination of a Purchase Option on or prior to the Closing Date, this Agreement shall automatically terminate as to such Property or Properties subject to such Purchase Option for which Seller failed to obtain a waiver, and the Purchase Price shall be reduced by the amount of the Purchase Price allocated to such Property or Properties as set forth on  Exhibit A, and Seller shall be obligated to reimburse Purchaser for its reasonable third party out-of-pocket expenses incurred by Purchaser and directly related to its investigation of such Property or Properties, and neither party shall have any further rights or obligations under this Agreement with respect to such Property or Properties.

8.3       Conditions to Seller’s Obligation to Close.  The obligations of Seller under this  Agreement  are  subject  to  the  fulfillment,  at  or  before  the  Closing,  of  the  following conditions (which may be waived in whole or in part by Seller in its sole discretion):

8.3.1    Accuracy of Purchaser’s Representations and Warranties.  Each of Purchaser’s representations and warranties set forth in Section 9.3 below shall be materially true and correct as of the Closing.

8.3.2  Purchaser’s Performance.   Purchaser shall have performed all covenants and obligations required by this Agreement to be performed or delivered by it on or before the Closing Date.

8.3.3    Purchase  Options.     Seller  shall  have  obtained  a  waiver  or termination of each Purchase Option on or prior to the Closing Date.  Notwithstanding anything to the contrary herein, in the event Seller fails to obtain a waiver or termination of a Purchase

Option on or prior to the Closing Date, this Agreement shall automatically terminate as to such Property or Properties subject to such Purchase Option for which Seller failed to obtain a waiver, and the Purchase Price shall be reduced by the amount of the Purchase Price allocated to such Property or Properties as set forth on Exhibit A, and Seller shall be obligated to reimburse Purchaser  for  its  reasonable  third  party  out-of-pocket  expenses  incurred  by  Purchaser  and directly related to its investigation of such Property or Properties, and neither party shall have any  further  rights  or  obligations  under  this  Agreement  with  respect  to  such  Property  or Properties.

9.    REPRESENTATIONS, WARRANTIES AND COVENANTS.

9.1    Seller’s Representations and Warranties.    Seller hereby represents and warrants to Purchaser as to the following matters, as of the date of this Agreement:

9.1.1.   Organization and Authority.  Seller is duly organized and in good standing under the laws of the state of its organization.  Seller has the power and authority under its organizational documents to sell, transfer, convey and deliver the Properties to be sold and purchased hereunder, and all action and approvals required thereunder have been duly taken and obtained. The execution of this Agreement by Seller, the consummation by Seller of the transactions herein contemplated, and the execution and delivery of all documents to be executed and delivered by Seller, have been or will be duly authorized by all requisite action on Seller’s part and this Agreement has been and all documents to be delivered by Seller pursuant to this Agreement, will be, duly executed and delivered by Seller and is or will be, as the case may be, binding upon and enforceable against Seller in accordance with their respective terms. The representations and warranties of Seller contained in this Section 9.1.1 shall survive Closing.

9.1.2   No Conflict.  The execution and delivery of this Agreement, the consummation of the transactions provided for herein and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, any provision of (i) Seller’s organizational documents, (ii) any material instrument or agreement to which Seller is a party to, (iii) to Seller’s Knowledge, any applicable law, rule or regulation, or (iv) to Seller’s Knowledge, any order or decree of any court or Governmental Authority (as hereinafter defined) of any nature by which Seller is bound.  “Governmental Authority” shall mean  any  governmental  or  quasi-governmental  agency,  department,  board,  commission,  or bureau or other governmental or quasi-governmental agency entity or instrumentality. The representations and warranties of Seller contained in this Section 9.1.2 shall survive Closing.

9.1.3   Condemnation.  Except as set forth on Schedule 9.1.3 attached hereto, Seller has not received from any Governmental Authority any written notice of any condemnation or eminent domain proceedings affecting any Property or any part thereof, and to Seller’s Knowledge, no such proceedings are threatened with respect to any Property or any part thereof.   To Seller’s Knowledge, no action or proceeding to change road patterns or grades which would affect ingress to or egress from any Property are pending or have been threatened. The representations and 

warranties of Seller contained in this Section 9.1.3 shall survive Closing for a period of six (6) months.

9.1.4   Proceedings.  To Seller’s Knowledge and except as set forth in Schedule 9.1.4 and in the Property Information, there are no actions, suits or other proceedings by any person, firm, corporation, Tenant or Governmental Authority now pending against or affecting the Properties or any part thereof.   Except as set forth on  Schedule 9.1.4 attached hereto, (a) Seller has not been served with any litigation which is still pending against Seller with respect to its ownership of the Properties, and (b) to Seller’s Knowledge, no such litigation has been threatened. The representations and warranties of Seller contained in this Section 9.1.4 shall survive Closing for a period of six (6) months.

9.1.5    Property Information.  To Seller’s Knowledge, Seller has provided to Purchaser true, complete and correct copies of all of the Property Information (as hereinafter defined). “Property Information” shall mean the documents to be delivered to Purchaser pursuant to  Exhibit G attached hereto.  The representations and warranties of Seller contained in this Section 9.1.5 shall survive Closing for a period of six (6) months.

9.1.6    Personal Property.      Seller owns no personal property located at any Property.  The representations and warranties of Seller contained in this Section 9.1.6 shall survive Closing for a period of six (6) months.

9.1.7   Ownership of the Properties.  The Seller owns fee title to the Properties. The representations and warranties of Seller contained in this Section 9.1.7 shall survive Closing for a period of six (6) months.

9.1.8    Contracts.   To Seller’s Knowledge, Seller is not a party to any written contracts or agreements relating to the Properties, other than the Master Leases, this Agreement, those agreements set forth on Schedule 9.1.8 attached hereto, and except as reflected in any Title Commitment provided to Purchaser pursuant to this Agreement. The representations and warranties of Seller contained in this Section 9.1.8 shall survive Closing for a period of six (6) months.

9.1.9    Insurance.  The Seller has not received any written notice from any insurance company or board of fire underwriters requesting the performance of any work or alterations with respect to any Property that has not been performed or required an increase in insurance rates applicable to any Property as a result of work which has not been performed. The Seller has received no written notice of default or cancellation under any insurance policies covering any Property. The representations and warranties of Seller contained in this Section
9.1.9 shall survive Closing for a period of six (6) months.

9.1.10  Bankruptcy.   Seller has not commenced (within the meaning of any federal or state bankruptcy law) a voluntary case, consented to the entry of an order for relief against it in an involuntary case, or consented to the appointment of a custodian of it or for all or any substantial part of its property, nor has a court of competent jurisdiction entered an order or decree under any federal or state bankruptcy law that is for relief against Seller in an involuntary case or appointed a custodian of Seller for all or any substantial part of its respective property. The  

representations  and  warranties  of  Seller  contained  in  this  Section  9.1.10  shall  survive Closing for a period of six (6) months.

9.1.11 Environmental Matters.   Except as described in the Property Information, Seller has not received any written notice from any Governmental Authority that any Property or the use thereof violates in any material respect any applicable federal, state, county or municipal laws, statutes, ordinances, orders, rules, regulations and/or requirements. No underground storage tanks have been removed from any Property by Seller.  To Seller’s Knowledge and except as set forth in the Property Information, there are no conditions relating to the release of Hazardous Materials on the Properties that has resulted in or is resulting in liability for investigation, response, remediation or cleanup of any Property, and Seller has not received any written notice of any such liabilities with respect to any Property.  As required pursuant to California Health & Safety Code 25359.7, Seller has previously advised Purchaser in writing, and as set forth in detail in the Property Information, that releases of Hazardous Materials have come to be located on or under the Properties.   “Hazardous Materials” shall mean any hazardous, toxic or dangerous wastes or substances, or material defined as a “hazardous waste”, “hazardous material”, “hazardous substance”, “toxic substance,” “extremely hazardous waste”, “restricted hazardous waste”, or similar categories in or for purposes of (i) any provision of California law; (ii) the Comprehensive Environmental Response, Compensation and Liability Act or 1980 (42 U.S.C. Sec. 6903 et seq.), as amended; (iii) the Clean Water Act (33 U.S.C.
1251 et seq.), as amended; (iv) any so-called “Superfund” or “Superlien” law; or (v) any other federal, state or local statute, law, ordinance, code, rule, regulation, order, decree or other requirement of any Governmental Authority regulating, relating to, or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect, including without limitation, asbestos, petroleum, petroleum products, petroleum product wastes, methyl tertiary butyl ether and lead. The representations and warranties of Seller contained in this Section 9.1.11 shall survive Closing for a period of six (6) months.

9.1.12  Rights of First Refusal.  Except as set forth in the Master Leases, Seller has not granted any rights of first refusal to purchase or lease any Property or any other rights or options to purchase or lease any Property.  To Seller’s knowledge, no such rights or options exist except as set forth on Schedule 9.1.12(a) (such rights or options set forth on Schedule 9.1.12(a), each, a “Purchase Option” and collectively, the “Purchase Options”) and Schedule 9.1.12(b).

9.1.13 Brokers.  No broker or finder has acted for Seller or any of its affiliates in connection with this Agreement or the transactions contemplated hereby and no person is entitled to any brokerage fee, finder’s fee or commission in respect thereof based upon arrangements made by or on behalf of Seller for which Purchaser could be liable. The representations and warranties of Seller contained in this Section 9.1.13 shall survive Closing.

9.1.14 Master Leases.   There are no leases or other rights of occupancy with respect to the Properties, or any portion thereof, other than the Master Leases and as set forth on  Schedule 9.1.14.  Seller has provided to Purchaser true, complete and correct copies of the Master Leases.  None of the Master Leases has been modified, amended or assigned, except as set forth on Schedule 4.1 attached hereto.  Seller has not received or given any notice of termination or default under any of the Master Leases, and, to Seller’s Knowledge, there is no existing or uncured claim 

of default by Seller or Tenant under any of the Master Leases.  Tenant has not asserted (X) any defenses, set-offs or counterclaims, (Y) any right to reduction in, refund

of, allowance, credit, rebate, concession or deduction against, or is otherwise disputing, any rent, additional rent and other charges payable pursuant to any of the Master Leases, or (Z) any right to  cancel  any  of  the  Master  Leases  or  to  be  relieved  of  its  covenants  thereunder.    No construction, alteration, decoration or other work remains to be performed under any of the Master Leases by the landlord thereunder and all construction allowances and brokerage commissions payable with respect to each of the Master Leases by the landlord thereunder have been paid.  Tenant has not paid any rent under any of the Master Leases for any period of more than thirty (30) days in advance. The representations and warranties of Seller contained in this Section 9.1.14 shall survive Closing for a period of six (6) months.

9.1.15  Accuracy.  To Seller’s Knowledge, none of the written information supplied by Seller to Purchaser or its agents pursuant to this Agreement in connection with the transactions contemplated by this Agreement did contain, or at the respective times such documents are delivered or become effective, will contain any untrue statement of a material adverse fact or did omit, or at the respective times such documents are delivered or become effective, will omit to state a material adverse fact necessary in order to make a statement contained therein not misleading.  To Seller’s Knowledge, no statement, certificate, schedule, list or other information furnished by Seller pursuant to this Agreement contains or will intentionally contain any untrue statements of a material adverse fact or omits or will intentionally omit to state a material adverse fact necessary in order to make a statement contained therein not misleading. The representations and warranties of Seller contained in this Section 9.1.15 shall survive Closing for a period of six (6) months.

“Seller’s Knowledge” or any similar phrase shall mean the current actual knowledge, without independent investigation or any implied duty to investigate or make any inquiries, of Joshua Pack, William Turner and Greg Shoemaker.  Such individuals shall have no personal liability in any manner whatsoever hereunder or otherwise related to the transactions contemplated hereby. Seller  represents  and  warrants  that  Joshua  Pack,  William  Turner  and  Greg  Shoemaker  are persons (i) having direct responsibility for the day to day operation and management of the Properties or (ii) otherwise have knowledge of the matters set forth in this Section 9.1.

Notwithstanding anything to the contrary herein, with respect to the property condition reports set forth on Exhibit G, Purchaser acknowledges and agrees that Seller has disclosed to Purchaser that Seller believes they are no longer accurate and that Seller makes no representation or warranty with respect to the accuracy thereof.

9.2       Representations Remade.  As of Closing, Seller shall be deemed to remake and restate the representations set forth in Section 9.1, except that the representations shall be updated by delivering written notice to Purchaser in order to reflect any fact, matter or circumstance which Seller has become aware of, other than facts, matters or circumstances that Seller has been informed of by Purchaser or any agent of Purchaser, that would make any of Seller’s representations or warranties contained herein untrue or incorrect in any material respect (any such disclosure being referred to as a “Pre-Closing Disclosure”).

9.3    Purchaser’s Representations and Warranties.    Purchaser represents and warrants that:

9.3.1   Organization.  Purchaser is duly organized and in good standing under the laws of the state of its organization.  Purchaser has full corporate power and authority under its organizational documents to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.   Purchaser is duly qualified, licensed or admitted to do business and is in good standing in all jurisdictions in which the ownership, use or leasing of its assets, or the conduct or nature of its business, makes such qualification, licensing or admission necessary and in which the failure to be so qualified, licensed or admitted and in good standing could reasonably be expected to have an adverse effect on the validity or enforceability of this Agreement or on the ability of Purchaser to perform its obligations hereunder. The representations and warranties of Purchaser contained in this Section
9.3.1 shall survive Closing.

9.3.2  Authority.   The execution and delivery by Purchaser of this Agreement, and the performance by Purchaser of its obligations hereunder, have been or will be duly and validly authorized by all necessary corporate and other proceedings on the part of Purchaser.  This Agreement has been duly and validly executed and delivered by Purchaser and constitutes legal, valid and binding obligations of Purchaser enforceable against Purchaser in accordance with its terms. The representations and warranties of Purchaser contained in this Section 9.3.2 shall survive Closing.

9.3.3   No Conflict.  The execution and delivery of this Agreement, the consummation of the transactions provided for herein and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, any provision of (i) Purchaser’s organizational documents, (ii) any material instrument or agreement to which Purchaser is a party to, (iii) to Purchaser’s actual knowledge, any applicable law, rule or regulation, or (v) to Purchaser’s actual knowledge, any order or decree of any court or Governmental Authority of any nature by which Purchaser is bound. The representations and warranties of Purchaser contained in this Section 9.3.3 shall survive Closing.

9.3.4    Litigation.  There are no actions or proceedings pending or, to the knowledge of Purchaser, threatened against, relating to or affecting Purchaser or any of its assets that could reasonably be expected to result in the issuance of an order restraining, enjoining or otherwise  prohibiting  or  making  illegal  the  consummation  of  any  of  the  transactions contemplated by this Agreement. The representations and warranties of Seller contained in this Section 9.3.4 shall survive Closing for a period of six (6) months.

9.3.5    Brokers.  No broker or finder has acted for Purchaser or any of its affiliates in connection with this Agreement or the transactions contemplated hereby and no person is entitled to any brokerage fee, finder’s fee or commission in respect thereof based upon arrangements made by or on behalf of Purchaser for which Seller could be liable. The representations and warranties of Purchaser contained in this Section 9.3.5 shall survive Closing.

9.3.6    Sophisticated Buyer.  (i) Purchaser, together with its advisers, is a sophisticated investor with substantial experience in the acquisition of real estate and the conduct of due diligence related to such acquisition, (ii) that the diligence and inspections permitted to take place herein within the time limits provided for herein are sufficient to provide Purchaser with all of the information needed by Purchaser to make an informed decision regarding the

acquisition of the Properties and (iii) Seller has not made any express or implied representation, warranty or covenant whatsoever regarding the Properties (other than as expressly set forth in this Agreement or any of the documents that have been or will be delivered by Seller pursuant to this Agreement).  To the extent that Purchaser has relied upon any representations not set forth in this Agreement or any of the documents that have been or will be delivered by Seller pursuant to this Agreement, then Purchaser shall have no recourse against Seller with respect thereto (except with respect to fraud). The representations and warranties of Purchaser contained in this Section
9.3.6 shall survive Closing.

9.3.7    No Knowledge of Seller Breaches.  Purchaser does not have any actual knowledge of any material inaccuracy in, or any material breach of, any of Seller’s representations, warranties or other statements set forth in this Agreement or in any of the Exhibits or Schedules hereto. The representations and warranties of Seller contained in this Section 9.3.7 shall survive Closing for a period of six (6) months.

10.    INDEMNIFICATION.

10.1    Indemnification.

10.1.1 Seller’s Indemnification.   Seller agrees to indemnify and hold harmless Purchaser for, from and against any and all losses, costs, claims, liabilities, damages and expenses, including, without limitation, reasonable attorneys' fees and consequential damages, incurred by Purchaser in connection with or arising from (a) any breach by Seller of any warranty or the inaccuracy of any representation of Seller contained in this Agreement (as may be modified by any Pre-Closing Disclosure) which expressly survives the Closing and (b) any breach by Seller of any of its covenants or agreements contained in this Agreement which expressly survive the Closing.

10.1.2  Purchaser’s Indemnification.   Purchaser agrees to indemnify and hold harmless Seller for, from and against any and all losses, costs, claims, liabilities, damages and expenses, including, without limitation, reasonable attorneys' fees and consequential damages, incurred by Seller in connection with or arising from (a) any breach by Purchaser of any warranty or the inaccuracy of any representation of Purchaser contained in this Agreement which expressly survive the Closing and (b) any breach by Purchaser of any of its covenants or agreements contained in this Agreement which expressly survive the Closing.

10.2    Notice and Determination of Claims.

10.2.1 Purchaser   or   Seller   (the   “Indemnified   Party”)   seeking indemnification hereunder shall give to the other party obligated to provide indemnification to such Indemnified Party (the “Indemnitor”) a notice (a “Claim Notice”) describing in reasonable detail 

the facts giving rise to any claim for indemnification hereunder and shall include in such Claim Notice (if then known) the amount or the method of computation of the amount of such claim, and a reference to the provision of this Agreement or any other agreement, document or instrument executed hereunder or in connection herewith upon which such claim is based; provided, that a Claim Notice in respect of any pending or threatened action at law or suit in equity by or against a third Person as to which indemnification will be sought (each such action

or suit being a “Third Person Claim”) shall be given promptly after the action or suit is commenced and governed under Section 10.3; provided further that failure to give such notice shall not relieve the Indemnitor of its obligations hereunder except to the extent it shall have been materially prejudiced by such failure.

10.2.2  After the giving of any Claim Notice pursuant hereto, the amount of indemnification to which an Indemnified Party shall be entitled under Section 10.1 shall be paid within fifteen (15) days of receipt of the Claim Notice, unless the Indemnitor has given written notice to the Indemnified Party of an objection regarding the Claim Notice, in which case the claim for indemnification shall be resolved by (i) written agreement between the Indemnified Party  and  the  Indemnitor;  (ii)  by  a  final  judgment  or  decree  of  any  court  of  competent jurisdiction; or (iii) by any other means to which the Indemnified Party and the Indemnitor shall agree.

10.3    Third Person Claims.

10.3.1  Subject to Section 10.3.2 hereof, the Indemnified Party shall have the right to conduct and control, through counsel of its choosing, the defense, compromise or settlement   of   any   Third   Person   Claim   against   such   Indemnified   Party   as   to   which indemnification will be sought by any Indemnified Party from any Indemnitor hereunder, and in any such case the Indemnitor shall cooperate in connection therewith and shall furnish such records,  information  and  testimony  and  attend  such  conferences,  discovery  proceedings, hearings, trials and appeals as may be reasonably requested by the Indemnified Party in connection therewith; provided, that:

(a)       the Indemnitor may participate, through counsel chosen by it and at its own expense, in the defense of any such Third Person Claim as to which the Indemnified Party has so elected to conduct and control the defense thereof; and

(b)       the Indemnified Party shall not, without the written consent of the Indemnitor (which written consent shall not be unreasonably withheld), pay, compromise or settle any such Third Person Claim; provided that if the Indemnitor withholds such consent, or fails to grant such consent within fourteen (14) days after written request from the Indemnified Party, and such Third Person Claim shall be adversely determined, then the Indemnitor shall have  an  obligation  to  provide  indemnification  hereunder  to  the  Indemnified  Party  without regards  to  the  Liability  Limitation  (as  hereinafter  defined),  but  such  indemnification  shall exclude the amount, if any, by which the proposed settlement amount exceeds the Liability Limitation; provided, that, in no event shall such exclusion reduce the indemnification provided hereunder below the Liability Limitation.

Notwithstanding the foregoing, the Indemnified Party shall have the right to pay, settle or compromise any such Third Person Claim without such consent, provided that in such event the Indemnified Party shall waive any right to indemnity therefor hereunder unless such consent is unreasonably withheld or delayed.

10.3.2  If any Third Person Claim against any Indemnified Party is solely for money damages not in excess of the Liability Limitation, where Seller is the Indemnitor, and

such Third Person Claim will have no continuing effect in any material respect on the Properties, then the Indemnitor shall have the right to conduct and control, through counsel of its choosing, the defense, compromise or settlement of any such Third Person Claim against such Indemnified Party as to which indemnification will be sought by any Indemnified Party from any Indemnitor hereunder  if  the  Indemnitor  has  acknowledged  and  agreed  in  writing  that,  if  the  same  is adversely determined, the Indemnitor has an obligation to provide indemnification to the Indemnified Party in respect thereof, and in any such case the Indemnified Party shall cooperate in connection therewith and shall furnish such records, information and testimony and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested by the Indemnitor in connection therewith, such cooperation to be at no cost or expense to the Indemnified Party; provided, that the Indemnified Party may participate, through counsel chosen by it and at its own expense, in the defense of any such Third Person Claim as to which the Indemnitor has so elected to conduct and control the defense thereof.  Notwithstanding the foregoing, the Indemnified Party shall have the right to pay, settle or compromise any such Third Person Claim, provided that in such event the Indemnified Party shall waive any right to indemnity therefor hereunder unless the Indemnified Party shall have sought the consent of the Indemnitor to such payment, settlement or compromise and such consent was unreasonably withheld, in which event no claim for indemnity therefor hereunder shall be waived.

10.4     Limitation of Seller’s Liability.  Notwithstanding anything to the contrary contained herein, if the Closing shall have occurred (and Purchaser shall not have waived, relinquished or released any applicable rights in further limitation), (a) the aggregate liability of Seller arising pursuant to or in connection with the representations, warranties, indemnifications, covenants or other obligations (whether express or implied) of Seller under this Agreement (or any document executed or delivered in connection herewith) shall not exceed Two Million Five Hundred Thousand Dollars ($2,500,000) (the “Liability Limitation”), except as provided in Section 10.3.1.b, and (b) no claim by Purchaser alleging a breach by Seller of any representation, warranty, indemnification, covenant or other obligation of Seller contained herein (or in any document executed or delivered in connection herewith) may be made, and Seller shall not be liable for any judgment in any action based upon any such claim, unless and until such claim, either alone or together with any other claims by Purchaser alleging a breach by Seller of any representation, warranty, indemnification, covenant or other obligation of Seller contained herein (or in any document executed or delivered in connection herewith), is for an aggregate amount in excess of Twenty Thousand Dollars ($20,000) (the “Floor Amount”), in which event Seller’s liability respecting such claim or claims shall be for the entire amount thereof, subject to the limitation set forth in clause (a) above.  No constituent partner or member in or agent of Seller, nor any advisor, trustee, director, officer, member, partner, employee, beneficiary, shareholder, participant, representative or agent of any entity that is or becomes a constituent partner or member in Seller or an agent of Seller (including, 

but not limited to, Drawbridge Special Opportunities Fund LP) (“Seller’s Affiliates”) shall have any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into under or pursuant to the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and, except as otherwise set forth herein, and Purchaser and its successors and assigns and, without limitation, all other persons and entities, shall look solely to Seller’s assets for the payment of any claim or for any performance, and Purchaser, on behalf of itself and its successors and assigns, hereby waives any and all such personal liability.   Notwithstanding anything to the contrary contained in this

Agreement, neither the negative capital account of any constituent partner or member in Seller, nor any obligation of any constituent partner or member in any entity owning an interest (directly or indirectly) in Seller to restore a negative capital account or to contribute capital to Seller (or any entity owning an interest, directly or indirectly, in any other constituent partner or member of Seller), shall at any time be deemed to be the property or an asset of Seller or any such other partner or member (and neither Purchaser nor any of its successors or assigns shall have any right to collect, enforce or proceed against or with respect to any such negative capital account of such party’s obligations to restore or contribute).  The provisions of this Section 10 shall survive the Closing and any termination of this Agreement.

10.5     Limitation  of  Purchaser’s  Liability.    Notwithstanding  anything  to  the contrary contained herein, if the Closing shall have occurred (and Seller shall not have waived, relinquished or released any applicable rights in further limitation), (a) the aggregate liability of Purchaser arising pursuant to or in connection with the representations, warranties, indemnifications, covenants or other obligations (whether express or implied) of Purchaser under this Agreement (or any document executed or delivered in connection herewith) shall not exceed the Liability Limitation, except as provided in Section 10.3.1.b, and (b) no claim by Seller alleging a breach by Purchaser of any representation, warranty, indemnification, covenant or other obligation of Purchaser contained herein (or in any document executed or delivered in connection herewith) may be made, and Purchaser shall not be liable for any judgment in any action based upon any such claim, unless and until such claim, either alone or together with any other claims by Seller alleging a breach by Purchaser of any representation, warranty, indemnification, covenant or other obligation of Purchaser contained herein (or in any document executed or delivered in connection herewith), is for an aggregate amount in excess of the Floor Amount, in which event Purchaser’s liability respecting such claim or claims shall be for the entire amount thereof, subject to the limitation set forth in clause (a) above.

10.6     Tax  Benefit  and  Treatment  of  Indemnification  Payment.    The  parties hereto agree that any indemnification payments made pursuant to this Section 10 shall be treated for  all  tax  purposes  as  an  adjustment  to  the  Purchase  Price  unless  otherwise  required  by applicable law.

The provisions of this Section 10 shall survive the Closing.

11.       SATISFACTION  OF  LIENS.    If  at  the  Closing  there  are  any  liens  on  the Properties which Seller is obligated to pay and discharge, Seller or Purchaser, with Seller’s written 

approval, shall have the right to instruct the Title Company to use any cash portion of the Purchase Price to satisfy the same.

12.    OPERATION OF PROPERTIES PRIOR TO CLOSING; EXCLUSIVITY.

12.1     Seller covenants and agrees that from the Effective Date until the Closing or sooner termination of this Agreement, Seller will cause the Tenant to continue to operate and maintain the Properties in accordance with their current standards and those standards that are customary for a triple net lease.

12.2     Seller covenants and agrees that, from the Effective Date until the Closing or sooner termination of this Agreement, Seller shall not, without Purchaser’s prior written consent in each instance, which consent may be given or withheld in Purchaser’s sole discretion, enter into any new lease, any amendment or modification to any of the Master Leases, consent to any assignment, sublease or alterations in connection with any lease existing as of the date hereof or any new lease unless the Seller has no legally effective right to object thereto, or remove any tenant under any lease, whether by summary proceeding or otherwise.  Seller shall promptly furnish Purchaser with a written notice of the proposed action which shall contain information regarding the proposed action that Seller believes is reasonably necessary to enable Purchaser to make informed decisions with respect to the advisability of the proposed action.  If Purchaser fails to give Seller notice of its approval or disapproval of any such proposed action requiring its approval hereunder within five (5) business days after Seller notifies Purchaser of Seller’s desire to take such action, then Purchaser shall be deemed to have given its approval to the action or matter described in Seller’s request.

12.3    From the Effective Date until the Closing or sooner termination of this Agreement, Seller covenants to: (a) not place any mortgage or any other encumbrance, easement, covenant, condition, right-of-way, license or restriction on any Property or voluntarily take any action that materially and adversely affects title to any Property as same exists on the Effective Date; (b) deliver to Purchaser, promptly after receipt by Seller, all written notices of any violations issued to Seller by Governmental Authorities with respect to any Property and any other material notices received from any Governmental Authority with respect to such Property; (c) not alter, amend or become a party to any new agreement affecting a Property unless the agreement is terminable within thirty (30) days after the Closing and such termination can occur without  penalty  or  other  cost  to  Purchaser;  (d)  not,  without  the  prior  written  consent  of Purchaser, take any action before any Governmental Authority, the object of which would be to change the present zoning of or other land use limitations upon any Property (or any portion thereof) or its potential use; or (e) not settle any condemnation claim or insurance casualty claim relating to the Properties without Purchaser’s prior written consent not to be unreasonably withheld or delayed.

12.4     Seller shall request estoppel certificates from each party to any reciprocal easement agreement or declaration of covenants, conditions and/or restrictions affecting any of the Properties regarding which, and within two (2) business days after, Seller has received written notice from Purchaser (together with a draft of such requested estoppel), addressed or certified to Purchaser and Purchaser’s lender (if any), regardless of whether such parties are required to execute such an estoppel certificate.  Seller shall forward to Purchaser a copy of any executed estoppel received by 

Seller within two (2) business days after receipt thereof.  The provisions of this Section 12.4 shall survive Closing for a period of six (6) months.

12.5    From the Effective Date until the Closing or sooner termination of this Agreement, Seller agrees that Seller shall not accept or entertain offers, negotiate, solicit interest or otherwise enter into discussions involving the sale, joint venture, financing, disposition or other transaction involving the Properties.

12.6     No later than September 12, 2014, Seller shall provide Purchaser with a waiver from Tenant of its right of first offer under Article 34 of each Master Lease with respect

to the sale of the Properties to Purchaser pursuant to this Agreement.  In addition, Seller shall, at Seller’s cost and expense, use diligent efforts to obtain a waiver or termination of each other Purchase Option on or prior to the Closing Date.

13.    INTENTIONALLY DELETED.

14.    MISCELLANEOUS.

14.1    Entire Agreement.   All understandings and agreements heretofore had between Seller and Purchaser with respect to the Properties are merged in this Agreement, which alone fully and completely expresses the agreement of the parties.

14.2    Assignment.  Except as provided in Section 14.12 below, neither this Agreement nor any interest hereunder shall be assigned or transferred by Purchaser without Seller’s consent; and in no event shall any assignment by Purchaser release Purchaser of its obligations hereunder, except as provided below.  Notwithstanding the foregoing provisions, Seller’s consent shall not be required where Purchaser proposes to assign this Agreement in whole or in part with respect to any Property to any special purpose entity owned or controlled by or under common control with AR Capital, LLC, American Realty Capital Properties, Inc. or ARC Properties Operating Partnership, L.P. so long as Purchaser gives Seller notice of such assignment setting forth the correct name and signature block of such assignee, at least five (5) days  prior  to  the  Closing  Date.    No  assignment  shall  relieve  ARCP  Acquisitions,  LLC,  a Delaware limited liability company (“Original Purchaser”) of liability for the performance of Purchaser’s duties and obligations under this Agreement, whether arising before or after the date of such assignment or Closing, and Original Purchaser and any assignee of Original Purchaser hereunder shall be and remain jointly severally liable for such duties and obligations; provided, however, with respect to any assignment, if Closing occurs the Original Purchaser (but not the assignee) shall be relieved of all its obligations arising under this Agreement before, on and after Closing.   Subject to the foregoing provisions, this Agreement shall be binding upon and enforceable against, and shall inure to the benefit of, Purchaser and Seller and their respective legal representatives, successors and permitted assigns.

14.3     Modifications.  This Agreement shall not be modified or amended except in a written document signed by Seller and Purchaser.

14.4    Time of Essence.  Time is of the essence of this Agreement.  In the computation of any period of time provided for in this Agreement or by law, the day of the act or event from which the period of time runs shall be excluded, and the last day of such period shall be included, unless it is a Saturday, Sunday, or legal holiday, in which case the period shall be deemed to run until the end of the next day which is not a Saturday, Sunday, or legal holiday.

14.5    Governing Law.  This Agreement shall be governed and interpreted in accordance with the laws of the state of California.

14.6     Notices. All notices, requests, demands or other communications required or permitted under this Agreement shall be in writing and delivered personally or by certified mail, return receipt requested, postage prepaid, by facsimile transmission with confirmed receipt, or by overnight courier (such as Federal Express), addressed as follows below.  All notices given

in accordance with the terms hereof shall be deemed given when received or upon refusal of delivery, provided that notices delivered via facsimile as hereinabove provided shall be deemed given once such notice or other communication is transmitted to the facsimile number for each party set forth below their respective addresses, provided that the sending facsimile generates a transmission report showing the successful completion of such transaction and provided that a copy of the notice, demand or request sent by facsimile shall also be sent by one of the other methods set forth herein.  Either party hereto may change the address for receiving notices, requests, demands or other communication by notice sent in accordance with the terms of this Section 14.6.

If to Seller:

c/o Drawbridge Special Opportunities Fund LP
1345 Avenue of the Americas, 46th Floor
New York, New York 10105
Attention: Constantine M. Dakolias, CCO
and Glenn P. Cummins, CFO Facsimile:  (212) 798-6131

With a copy to:

Fortress Investment Group LLC
10250 Constellation Boulevard, Suite 1600
Los Angeles, CA 90067
Attention:  William Turner
Facsimile:  (310) 228-3031

With a copy to:

Sidley Austin LLP
555 W. 5th Street, Suite 4000
Los Angeles, CA 90013

Attention: Courtney Rangen
Facsimile No.: (213) 896-6600

If to Purchaser:

c/o American Realty Capital Properties, Inc.
2325 East Camelback Road, Suite 1100
Phoenix, Arizona 85016
Attention:  Todd J. Weiss
Telephone: (602) 778-6340
Facsimile: (480) 449-7012

With a copy to:

Kutak Rock LLP
8601 N. Scottsdale Road, Suite 300

Scottsdale, AZ 85253-2742
Attention: Mitchell Padover, Esq. Telephone: (480) 429-4848
Facsimile: (480) 429-5001

14.7      “AS IS” SALE.   ACKNOWLEDGING THE PRIOR USE OF THE PROPERTIES  AND  PURCHASER’S  OPPORTUNITY  TO  INSPECT  THE PROPERTIES,  PURCHASER  AGREES,  SUBJECT  TO  THE  REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 9.1 ABOVE OR IN ANY DOCUMENTS EXECUTED BY SELLER PURSUANT TO THIS AGREEMENT (THE “EXPRESS REPRESENTATIONS”) TO TAKE THE PROPERTIES “AS-IS,” “WHERE-IS,” AND WITH ALL FAULTS AND CONDITIONS THEREON. PURCHASER ACKNOWLEDGES AND AGREES THAT, SUBJECT TO THE EXPRESS REPRESENTATIONS, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY  DISCLAIMS  ANY  REPRESENTATIONS,  WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE NATURE, QUALITY OR CONDITION OF THE PROPERTIES, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY; (B) THE INCOME TO BE DERIVED FROM THE PROPERTIES, (C) THE SUITABILITY OF THE PROPERTIES FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTIES OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (E) THE HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTIES; OR (F) ANY OTHER MATTER WITH RESPECT TO  THE  PROPERTIES,  AND  SPECIFICALLY  DISCLAIMS  ANY REPRESENTATIONS REGARDING TERMITES OR WASTES, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION 

AGENCY REGULATIONS AT 40 C.F.R., OR ANY HAZARDOUS SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980 (“CERCLA”),  AS  AMENDED,  AND  REGULATIONS  PROMULGATED THEREUNDER.  PURCHASER, ITS SUCCESSORS AND ASSIGNS, HEREBY WAIVE, RELEASE AND AGREE NOT TO MAKE ANY CLAIM OR BRING ANY COST RECOVERY ACTION OR CLAIM FOR CONTRIBUTION OR OTHER ACTION OR CLAIM AGAINST SELLER OR SELLER’S AFFILIATES (OTHER THAN TENANT PURSUANT TO THE MASTER LEASES) BASED ON (A) ANY FEDERAL, STATE, OR LOCAL ENVIRONMENTAL OR HEALTH AND SAFETY LAW OR REGULATION, INCLUDING CERCLA OR ANY STATE EQUIVALENT, OR ANY SIMILAR LAW NOW EXISTING OR HEREAFTER ENACTED, (B) ANY DISCHARGE, DISPOSAL, RELEASE, OR ESCAPE OF ANY CHEMICAL, OR ANY MATERIAL WHATSOEVER, ON, AT, TO, OR FROM THE PROPERTIES, OR (C) ANY ENVIRONMENTAL CONDITIONS WHATSOEVER ON, UNDER, OR IN THE VICINITY OF THE PROPERTIES.  THE PROVISIONS OF THIS SECTION 14.7 SHALL SURVIVE THE CLOSING AND ANY TERMINATION OF THIS AGREEMENT.

PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTIES, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL  CONDITIONS  THEREOF,  AS  PURCHASER  DEEMS  NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTIES AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH  RESPECT  TO  ANY  HAZARDOUS  OR  TOXIC  SUBSTANCES  ON  OR DISCHARGED FROM THE PROPERTIES.   UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS,  AND  PURCHASER,  UPON  CLOSING,  SHALL  BE  DEEMED  TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S AFFILIATES, OTHER THAN TENANT PURSUANT TO THE MASTER LEASES) FROM AND  AGAINST  ANY  AND  ALL  CLAIMS,  DEMANDS,  CAUSES  OF  ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S AFFILIATES, OTHER THAN TENANT PURSUANT TO THE MASTER LEASES) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTIES.

NOTWITHSTANDING  THE  FOREGOING,  PURCHASER  DOES  NOT WAIVE, RELEASE OR DISCHARGE ANY CLAIM IT HAS OR MAY HAVE AGAINST SELLER WITH RESPECT TO THE EXPRESS REPRESENTATIONS OR ANY CLAIM IT MAY HAVE AGAINST TENANT PURSUANT TO THE MASTER LEASES.

PURCHASER EXPRESSLY WAIVES ALL RIGHTS UNDER CALIFORNIA CIVIL CODE SECTION 1542, AS AMENDED OR MODIFIED, WHICH PROVIDES THAT:

“A  GENERAL  RELEASE  DOES  NOT  EXTEND  TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

PURCHASER HEREBY SPECIFICALLY ACKNOWLEDGES THAT PURCHASER HAS CAREFULLY REVIEWED THIS SECTION, AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL, IS FULLY AWARE OF ITS CONSEQUENCES, AND THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART OF THIS AGREEMENT;  PROVIDED,  HOWEVER,  SUCH  RELEASE,  WAIVER  OR  DISCHARGE

SHALL NOT APPLY AND SHALL BE OF NO FORCE OR EFFECT FOR ANY CLAIMS ARISING OUT OF SELLER'S FRAUD.

/s/ JP    /s/ TW    Seller's Initials    Purchaser's Initials

14.8    Waiver of Jury Trial; Judicial Reference.

14.8.1  Because disputes arising in connection with complex transactions are most quickly and economically resolved by an experienced and expert person and further because Seller and Purchaser (collectively, the "Parties") wish applicable California State and Federal laws to apply, the Parties desire that their disputes be resolved by a judicial referee applying such applicable laws.  The Parties understand and acknowledge that, to achieve these goals, the Parties are required to and hereby do forego resort to trial by jury in any action, suit, or proceeding brought to resolve any dispute,  whether sounding in contract, tort or otherwise, arising out of, connected with, related to, or incidental to this Agreement and/or the relationship established among the Parties in connection with this Agreement or related document or the transactions contemplated hereby or thereby (a "Dispute").

14.8.2  Accordingly, any Dispute arising out of or in connection with this Agreement and/or the relationship established among the Parties in connection with this Agreement or related document or the transactions contemplated hereby or thereby, shall be resolved pursuant to the provisions for reference and trial by referee (without jury) set forth in California Code of Civil Procedure Section 638 et seq., or any statute containing reasonably similar provisions which replaces such sections, except as expressly modified by the provisions hereof.  The referee ("Referee") shall be a retired or former California Superior Court or Court of Appeals judge or Supreme Court justice residing in the Los Angeles, California area, who is either (i) agreed to by the Parties to a Dispute within fifteen (15) days of the notice by any Party to the other(s) of the intention to invoke this Section 26.02 to resolve the Dispute, or (ii) failing such agreement, is appointed pursuant to California Code of Civil Procedure Section 640 in an action filed in the Superior Court of Los Angeles County, California.

14.8.3  The Parties agree that any Party may (and, if necessary, the other Parties shall join in such filing) file with the clerk of the Los Angeles County Superior Court, and/or with the appropriate judge of such court, any and all petitions, motions, applications or other documents necessary to obtain the appointment of such a Referee immediately upon the commencement of any action or proceeding to resolve any Dispute, and to conduct all necessary discovery and to proceed to a trial as expeditiously as possible. It is the Parties' intention and the Parties and the Referee shall use their best efforts to be certain that (i) discovery be conducted for a period no longer than six (6) months from the date (the "Referee Date") the Referee is appointed (whether by stipulation or by the Superior Court), excluding motions regarding discovery, and (ii) trial be set on a date that is within nine (9) months of the Referee Date.  All discovery motions shall be filed with the Referee and served upon the opposing Party no later than the last day of the six-month discovery period; provided that the Parties agree to grant such reasonable extensions of time necessary to reflect the complexities of the issues presented for resolution.   All proceedings, including trial, before the Referee shall be conducted at a neutral location (unless otherwise stipulated by the Parties) within ten (10) miles of the downtown Los

Angeles County Superior Court.  The Parties agree that said Referee shall be a judge for all purposes (including, without limitation, (x) ruling on any and all discovery matters and motions and any and all pretrial or trial motions, (y) setting a schedule of pretrial proceedings, and (z) making any other orders or rulings a sitting judge of the Superior Court would be empowered to make in any action or proceeding in the Superior Court).  Any matter before the Referee shall be governed by the substantive law of California, its Code of Civil Procedure, Rules of Court, Evidence Code, and such other statutes or rules which would be applicable if the matter were tried in the Superior Court, except as otherwise specifically agreed by the Parties and approved by  the  Referee.    The  Parties  intend  this  general  reference  agreement  to  be  specifically enforceable in accordance with the California Code of Civil Procedure.  Any decision of the Referee and/or judgment or other order entered thereon shall be appealable to the same extent and in the same manner that such decision, judgment, or order would be appealable if rendered by a judge of the Los Angeles County Superior Court.  The Referee shall in his/her statement of decision set forth his/her findings of fact and conclusions of law.

14.8.4 During the pendency of any action or proceeding respecting a Dispute, and before the entry of any judgment therein, each of the parties to such action or proceeding shall bear equal shares of the fees charged and costs incurred by the Referee in connection with performing the services provided in this Section.  The compensation of the Referee shall not exceed the prevailing rate for like services.   The prevailing party shall be entitled  to  reasonable  court  costs  and  legal  fees,  including  customary  attorney  fees,  expert witness fees, paralegal fees, the fees of the Referee and other reasonable costs and disbursements charged to the party by its counsel, in such amount as is determined by the Referee.  If a court reporter is requested by either party, then such reporter shall be present at all proceedings, and the fees of such reporter shall be borne by the party requesting such reporter.  Such fees shall be an item of recoverable costs.

14.8.5  Nothing in this Section 14.8 shall prejudice the right of any Party to obtain provisional relief or other equitable remedies as shall otherwise be available under the Code of Civil Procedure and/or applicable Court rules.

14.8.6  SELLER AND PURCHASER EACH ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION 14.8 ARE A MATERIAL INDUCEMENT TO THE OTHER PARTY’S ENTERING INTO THIS AGREEMENT.

14.9     Confidentiality.   Except as may be required by law, without the prior written consent of Seller, and unless the Closing occurs, Purchaser shall use the same degree of care with respect to Information (hereinafter defined) as Purchaser employs with respect to its own proprietary or confidential information of like importance, and shall not disclose to any third party the existence of this Agreement or any term or condition thereof or the results of any inspections or studies undertaken in connection herewith or make any public pronouncements, issue any press releases or otherwise furnish the Information or any information regarding this Agreement, or the transactions contemplated hereby to any third party; provided, however, that the foregoing shall not be construed to prevent Purchaser from making (i) disclosures to Purchaser’s  Representatives  (as  hereinafter  defined),  (ii)  any  disclosure  required  by  any applicable law or regulation or judicial process, or (iii) any disclosure to the extent such information  or  materials  (1)  are  already  in  the  public  domain,  (2)  is  or  become  generally

available to the public other than as a result of a disclosure by Purchaser, (3) is or become available to Purchaser on a non-confidential basis from a source other than Seller who, to Purchaser’s knowledge, is not subject to a confidentiality agreement with, or other obligation of secrecy to, Seller prohibiting such disclosure, or (4) are independently developed by Purchaser or its representatives without reference to the Information.   For purposes hereof, “Information” shall mean and shall be deemed to include, without limitation, the following written information provided by or on behalf of Seller to Purchaser, its agents, employees, representatives, consultants, lenders, attorneys or other professionals (collectively, “Purchaser’s Representatives”) either prior to or following the Effective Date: (a) all documentation and/or information described in or relating to this Agreement, including, without limitation, the Leases, the Property Information, and all other information regarding the operation, ownership, maintenance, management, or occupancy of the Properties; (b) the Surveys; and (c) any reports, tests, or studies (together with the results of such studies and tests obtained or provided by, or on behalf of, Seller).  Notwithstanding the foregoing, Seller’s delivery and Purchaser’s use of the Information  are  subject  to  the  following  terms:    Purchaser  shall  (i)  accept  and  hold  all Information in confidence using the same degree of care with respect to Information as Purchaser employs with respect to its own proprietary or confidential information of like importance; (ii) not copy, reproduce, distribute or disclose the Information to any third party other than Purchaser’s  Representatives,  except  as  permitted  in  this  Section  14.9;  (iii)  not  use  the Information for any purpose other than in connection with the transactions contemplated hereunder; and (iv) not knowingly use the Information in any manner detrimental to Seller or the Properties.    Purchaser agrees to transmit the Information only to those Purchaser’s Representatives who are participating in the evaluation of the acquisition of the Properties, who are informed of the terms of this Section 14.9 of this Agreement and who are instructed not to make use of the Information in a manner inconsistent herewith.  Purchaser shall be responsible for any breach of the terms of this Agreement by Purchaser’ Representatives or any other person to whom the Information is communicated. Purchaser agrees to indemnify, defend and hold Seller, its members, officers, directors, shareholders, partners, employees, beneficiaries, trustees, agents and representatives harmless against all losses, claims, suits, damages and liabilities resulting from Purchaser’s breach of this Section 14.9, as well as any breach thereof by Purchaser’s Representatives, which indemnification shall survive the termination of this Agreement for a period of one (1) year.

14.10   Tax  Disclosure  Provision.     Notwithstanding  anything  herein  to  the contrary, any party to this Agreement (and any employee, representative, or other agent of any party to this Agreement) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of any transaction contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure; provided, however, that such disclosure may not be made to the  extent  required  to  be  kept  confidential  to  comply  with  any  applicable  federal  or  state securities laws.   The provisions of this Section 14.10 are intended to comply with the requirements of the presumption set forth in Treasury Regulations Section 1.6011-4 (b) (3) and are  not  intended  to  permit  the  disclosure  of  any  information  that  is  not  subject  to  the requirements of such presumption.

14.11   Reports.   If for any reason Purchaser does not consummate the Closing
(other than because of a breach by Seller hereunder), then Purchaser shall, upon Seller’s written

request, either (a) return to Seller any and all studies, reports, surveys and other information, data and/or documents relating to the Properties or any part thereof provided to Purchaser by or at the request of Seller or Seller’s Affiliates, or (b) certify to Seller that Purchaser has destroyed all such  documents;  provided  that,  Purchaser  shall  return  to  Seller  copies  of  all  the  full-sized surveys provided to Purchaser by Seller’s counsel.  Notwithstanding the foregoing, Purchaser (x) will be entitled to retain one copy of the Information for compliance purposes or for the purposes of  defending  or  maintaining  litigation  or  threatened  litigation,  subject  to  the  continued application of the provisions of Section 14.9 and (y) will not be obligated to erase Information that is contained in an archived computer system made in accordance with its security and/or disaster  recovery  procedures  on  the  understanding  that  any  such  retained  Information  shall remain subject to the continued application of the provisions of Section 14.9.

14.12   Reporting Person.  Seller and Purchaser hereby designate Escrow Agent to act as and perform the duties and obligations of the “reporting person” with respect to the transaction contemplated by this Agreement for purposes of 26 C.F.R. Section 1.6045-4(e)(5) relating to the requirements for information reporting on real estate transactions closed on or after January 1, 1991.  In this regard, Seller and Purchaser each agree to execute at Closing, and to cause Escrow Agent to execute at Closing, a Designation Agreement, designating Escrow Agent as the reporting person with respect to the transaction contemplated by this Agreement.

14.13   Press Releases.  The parties hereto shall not issue any press releases with respect to the transactions contemplated hereby or consummated in accordance with the terms hereof except upon the mutual agreement of the parties as to the form and content of such press release (with consent not to be unreasonably withheld or delayed by either party).

14.14   Counterparts.    This  Agreement  may  be  executed  in  any  number  of identical counterparts, any or all of which may contain the signatures of less than all of the parties, and all of which shall be construed together as but a single instrument.

14.15   Construction.  This Agreement shall not be construed more strictly against Seller merely by virtue of the fact that the same has been prepared by Seller or its counsel, it being recognized both of the parties hereto have contributed substantially and materially to the preparation of this Agreement.

14.16   Attorneys’ Fees.  In the event of litigation between the parties with respect to this Agreement or the transactions contemplated hereby, the prevailing party therein shall be entitled to recover from the losing party all of its costs of enforcement and litigation, including, but not limited to, its reasonable attorneys’ and paralegal fees, witness fees, court reporters’ fees and other costs of suit.

14.17   ERISA.  Each party represents to the other that it is not deemed for any purpose of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Code, to hold assets of any (1) “employee benefit plan” as defined in, and subject to the fiduciary responsibility provisions of, ERISA, or (2) “plan” as defined in and subject to Section 4975 of the Code.

14.18  Specially Designated National or Blocked Person.  For purposes of this Agreement, (i) a “Specially Designated National or Blocked Person” means a Person (a) designated by the Office of Foreign Assets Control at the U.S. Department of the Treasury, or other U.S. governmental entity, and appearing on the List of Specially Designated Nationals and Blocked Persons (http://www.ustreas.gov/offices/enforcement/ofac/sdn/ index.shtml), which List may be updated from time to time; or (b) with whom Purchaser or Seller is prohibited from engaging in transactions by any trade embargo, economic sanction or other prohibition of United States  law,  regulation,  or  Executive  Order  of  the  President  of  the  United  States;  and  (ii) “Person”  means  an  individual,  corporation,  partnership,  limited  liability  company,  trust, business  trust,  association,  joint  stock  company,  joint  venture,  sole  proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.   Purchaser represents and warrants to Seller, knowing that Seller is relying on such representation and warranty, that Purchaser is not a Specially Designated or Blocked Person. Seller represents and warrants to Purchaser, knowing that Purchaser is relying on such representation and warranty, that Seller is not a Specially Designated or Blocked Person.

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

14.20   Further Assurances.   Seller and Purchaser shall execute and deliver any and all additional papers, documents, and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent of this Agreement.

[SIGNATURES ON FOLLOWING PAGE]

IN WITNESS WHEREOF,  the parties have caused this Agreement to be signed by their duly authorized representatives as of the date first above written.

SELLER:     CF UNITED PROPCO LLC,
a Delaware limited liability company

By: /s/ Joshua Pack    
Name: Joshua Pack    
Title: Vice President    

PURCHASER:     ARCP ACQUISITIONS, LLC,
a Delaware limited liability company

By: /s/ Todd J. Weiss    
Name: Todd J. Weiss    
Title: Authorized Officer

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