Document:

ex105.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
10.5

    

    FORM
OF AMENDED, RESTATED AND CONSOLIDATED PROMISSORY NOTE

    

    
      	
              $___________

               

            	 
      	
              January 15,
      2010

            
	
              Loan
      No. ____________

            	 
      	 
      

    

    

    THIS AMENDED, RESTATED AND
CONSOLIDATED PROMISSORY NOTE is made by MACK-CALI REALTY, L.P., a Delaware limited
partnership (“Borrower”)
to the order of VPCM,
LLC, a Virginia limited liability company (“Lender”, which shall also mean
successors and assigns who become holders of this Note).

    

    W I T N E S S E T
H:

    

    WHEREAS, Borrower is the maker
of, or has assumed the obligations of the maker of, that certain Amended and
Restated Promissory Note dated as of November 12, 2004 in the original
principal amount of _____________ ($__________) and payable to the order of
Prudential, and of that certain Supplemental Promissory Note dated as of
November 12, 2004 in the original principal amount of _____________
($__________) and payable to the order of Prudential (collectively, the
“Existing Note”; the loan evidenced by the Existing Note is herein referred to
as the “Existing Loan”);

    

    WHEREAS, the Existing Loan was
made pursuant to that certain Amended and Restated Loan Agreement dated as of
November 12, 2004 (the “Existing Loan Agreement”) by and among, inter alia,
Prudential and Borrower relating to seven (7) cross-collateralized and
cross-defaulted loans in the aggregate principal amount of $150,000,000.00;
and

    

    WHEREAS, as of the date
hereof, Prudential has assigned to VPCM, LLC, a Virginia limited liability
company (“VPCM”), an undivided interest in and to the Existing Loan and Existing
Note and the other documents that further evidence or secure the indebtedness
evidenced thereby, so that Prudential and VPCM shall be co-lenders with respect
to such indebtedness; and

    

    WHEREAS, Borrower and Lender
have agreed, pursuant to that certain Amended and Restated Loan Agreement dated
of even date herewith (the “Loan Agreement”) by and among, inter alia, Lender,
Prudential, and Borrower relating to seven (7) cross-collateralized and
cross-defaulted loans in the aggregate principal amount of $150,000,000.00
(individually, a “Crossed Loan”, and collectively, the “Crossed Loans”), each of
which Crossed Loans consists of a loan made by Prudential and a loan made by
VPCM as co-lenders with respect to such indebtedness, which amount includes the
Loan (as hereinafter defined) evidenced by this Note, to refinance the seven (7)
cross-collateralized and cross-defaulted loans referenced in the Existing Loan
Agreement, to amend and restate the terms thereof, and to re-allocate the loan
amounts among the seven (7) Crossed Loans representing additional advances to
certain borrowers under the Loan Agreement and corresponding reductions of loan
amounts to other borrowers under the Loan Agreement; and

    

    WHEREAS, Borrower and Lender
have agreed in the manner hereinafter set forth to divide the Existing Note and
Existing Loan into two notes and loans, one in the amount of and evidenced by
this Note and one in the amount of $_________ evidenced by that certain Amended,
Restated and Consolidated Promissory Note (the “Companion Note”) in favor of
Prudential from Borrower in such amount and secured by the Instrument (as
hereinafter defined), and to reduce the amount of the indebtedness to Borrower
by the principal amount of $__________ under the loan now evidenced by this Note
and under the loan now evidenced by the Companion Note in the amount of
$________, which amount reflects a reallocation of the loan amounts from the
Existing Loan to Borrower to certain of the other six (6) Crossed Loans governed
by the Existing Loan Agreement and represents a repayment by Borrower to effect
such reduction, and (i) to amend the Note Rate on the Existing Note and
Existing Loan, and on the Companion Note and the loan evidenced thereby, to six
and twenty five hundredths percent (6.25%) per annum, (ii) to extend the
maturity date of the Loan evidenced by the Existing Note, and of the loan
evidenced by the Companion Note, to January 15, 2017, and (iii) to
modify certain other terms and provisions of the Existing Note by amending and
restating the terms thereof into this new Amended, Restated and Consolidated
Promissory Note in the principal sum of _____________ ($__________) (the “Loan”)
with a corresponding amendment and restatement evidenced by the Companion Note;
and

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
 

    NOW, THEREFORE, in
consideration of the foregoing recitals, which are incorporated into the
operative provisions of this Note by this reference, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
conclusively acknowledged, Borrower hereby covenants and agrees with Lender as
follows:

    

    A.           Outstanding
Indebtedness.  The aggregate outstanding indebtedness evidenced
by the Existing Note as so adjusted, if applicable, as set forth above, is
_____________ ($__________), it being understood that no interest under the
Existing Note is accrued and unpaid for the period prior to the date hereof, but
that interest shall accrue from and after the date hereof at the rate or rates
herein provided; and the aggregate outstanding indebtedness evidenced by the
portion of the Existing Note amended and restated hereby is _____________
($__________), it being understood that the remaining portion of the aggregate
outstanding indebtedness evidenced by the Existing Note as so adjusted, if
applicable, as set forth above, is amended and restated by the Companion Note in
the amount of $________.

    

    B.           Amendment
and Restatement of Existing Note.  All of the terms, covenants
and provisions of the Existing Note are hereby modified, amended and restated
herein and in the Companion Note so that henceforth such terms, covenants and
provisions shall be those set forth in this Amended, Restated and Consolidated
Promissory Note and the Companion Note, and the Existing Note, as so modified,
amended and restated in their entirety, are hereby ratified and confirmed in all
respects by Borrower.

    

    C.           Borrower's
Promise to Pay.  FOR VALUE RECEIVED, Borrower
promises to pay to the order of Lender, at c/o Prudential Asset Resources,
Inc., 2100 Ross Avenue, Suite 2500, Dallas, Texas  75201,
Attention:  Asset Management Department;  Reference Loan
No. ________ and ________, the principal sum of _____________
($__________), with interest on the unpaid balance (“Balance”) at the rate of six
and twenty five hundredths percent (6.25%) per annum (“Note Rate”) from and including
the date hereof (“Funding Date”) until and including
Maturity (defined below).  Capitalized terms used without definition
shall have the meanings ascribed to them in the Instrument (defined
below).

    

    1.           Regular
Payments.  Principal and interest shall be payable as
follows:

    

    (a)           Interest
only shall be paid in arrears in thirty (30) monthly installments of
_____________ ($__________) each, commencing on February 15, 2010 and
continuing on the fifteenth (15th) day of each succeeding month to and including
July 15, 2012.  Each payment due date under Paragraphs 1(a)
and 1(b) of this Note is referred to as a “Due Date”.

    

    (b)           Principal
and interest shall be paid in fifty three (53) monthly installments of
_____________ ($__________) each commencing on August 15, 2012 and
continuing on the fifteenth (15th) day of each succeeding month to and including
December 15, 2016.

     

     

     

    
      
         

      

      
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    (c)           The
entire Obligations (as defined in the Instrument (defined below)) shall be due
and payable on January 15, 2017 (“Maturity
Date”).  “Maturity” shall mean the
Maturity Date or earlier date that the Obligations may be due and payable by
acceleration by Lender as provided in the Documents.

    

    (d)           Interest
on the Balance for any full month shall be calculated on the basis of a three
hundred sixty (360) day year consisting of twelve (12) months of thirty (30)
days each.  For any partial month, interest shall be due in an amount
equal to (i) the Balance multiplied by (ii) the Note Rate divided by
(iii) 360 multiplied by (iv) the number of days during such partial
month that any Balance is outstanding to (but excluding) the date of
payment.

    

    2.           Late Payment and Default
Interest.

    

    (a)           Late
Charge.  If any scheduled payment due under this Note is not
fully paid by its Due Date (other than the principal payment due on the Maturity
Date), a charge of $100.00 per day (the “Daily Charge”) shall be
assessed for each day that elapses from and after the Due Date until such
payment is made in full (including the date payment is made), subject, however,
if, as set forth below, Borrower is then entitled to the “Daily Charge Grace
Period”, that such failure continues for two (2) days after such Due Date (the
“Daily Charge Grace
Period”);  provided, however, that if Borrower receives the
benefit of such Daily Charge Grace Period within any twelve (12) month period,
Borrower shall have no further right to the Daily Charge Grace Period during
that twelve (12) month period;  provided, further, however, that if
any such payment, together with all accrued Daily Charges, is not fully paid by
the fourteenth (14th) day following the applicable Due Date, a late charge equal
to the lesser of (i) four percent (4%) of such payment or (ii) the
maximum amount allowed by law (the “Late Charge”) shall be
assessed and shall be immediately due and payable.  The Late Charge
shall be payable in lieu of Daily Charges that shall have
accrued.  The Late Charge may be assessed only once on each overdue
payment.  These charges shall be paid to defray the expenses incurred
by Lender in handling and processing such delinquent payment(s) and to
compensate Lender for the loss of the use of such funds.  The Daily
Charge and Late Charge shall be secured by the Documents.  The
imposition of the Daily Charge, Late Charge, and/or requirement that interest be
paid at the Default Rate (defined below) shall not be construed in any way to
(i) excuse Borrower from its obligation to make each payment under this
Note promptly when due or (ii) preclude Lender from exercising any rights
or remedies available under the Documents upon an Event of Default.

    

    (b)           Acceleration.  Upon
any Event of Default, Lender may declare the Balance, unpaid accrued interest,
the Prepayment Premium (defined below) and all other Obligations immediately due
and payable in full.

    

    (c)           Default
Rate.  Upon an Event of Default or at Maturity, whether by
acceleration (due to a voluntary or involuntary default) or otherwise, the
entire Obligations (excluding accrued but unpaid interest if prohibited by law)
shall bear interest at the Default Rate.  The “Default Rate” shall be the
lesser of (i) the maximum rate allowed by law or (ii) five percent
(5%) plus the greater of (A) the Note Rate or (B) the prime rate (for
corporate loans at large United States money center commercial banks) published
in The Wall Street Journal on the first Business Day (defined below) of the
month in which the Event of Default or Maturity occurs and on the first Business
Day of every month thereafter.  The term “Business Day” shall mean each
Monday through Friday except for days in which commercial banks are not
authorized to open or are required by law to close in New York, New
York.

    

    3.           Application of
Payments.  Until an Event of Default occurs, all payments
received under this Note shall be applied in the following order: (a) to
unpaid Daily Charges, Late Charges and costs of
collection;  (b) to any Prepayment Premium
due;  (c) to interest due on the Balance;  and
(d) then to the Balance.  After an Event of Default, all payments
shall be applied in any order determined by Lender in its sole
discretion.

     

     

    
      
         

      

      
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    4.           Prepayment.  This
Note may be prepaid on any date, in whole or in part, upon at least thirty (30)
days’ prior written notice to Lender and upon payment of all accrued interest
(and other Obligations due under the Documents) and a prepayment premium (“Prepayment Premium”) equal to
the greater of (a) one percent (1%) of the principal amount being prepaid
multiplied by the quotient of the number of full months remaining until the
Maturity Date, calculated as of the prepayment date, divided by the number of
full months comprising the term of this Note, or (b) the Present Value of
the Loan (defined below) less the amount of principal and accrued interest (if
any) being prepaid, calculated as of the prepayment date.  The
Prepayment Premium shall be due and payable, except as provided in the
Instrument or as limited by law, upon any prepayment of this Note, whether
voluntary or involuntary, and Lender shall not be obligated to accept any
prepayment of this Note unless it is accompanied by the Prepayment Premium, all
accrued interest and all other Obligations due under the
Documents.  Lender shall notify Borrower of the amount of and the
calculation used to determine the Prepayment Premium.  Borrower agrees
that (a) Lender shall not be obligated to actually reinvest the amount
prepaid in any Treasury obligation and (b) the Prepayment Premium is
directly related to the damages that Lender will suffer as a result of the
prepayment.  The “Present Value of the Loan”
shall be determined by discounting all scheduled payments remaining to the
Maturity Date attributable to the amount being prepaid at the Discount Rate
(defined below).  If prepayment occurs on a date other than a Due
Date, the actual number of days remaining from the date of prepayment to the
next Due Date will be used to discount within this period.  The “Discount Rate” is the rate
which, when compounded monthly, is equivalent to the Treasury Rate (defined
below), when compounded semi-annually.  The “Treasury Rate” is the
semi-annual yield on the Treasury Constant Maturity Series with maturity equal
to the remaining weighted average life of the Loan, for the week prior to the
prepayment date, as reported in Federal Reserve Statistical
Release H.15 - Selected Interest Rates, conclusively determined by
Lender (absent a clear mathematical calculation error) on the prepayment
date.  The rate will be determined by linear interpolation between the
yields reported in Release H.15, if necessary.  If
Release H.15 is no longer published, Lender shall select a comparable
publication to determine the Treasury Rate.  Borrower agrees that
Lender shall not be obligated actually to reinvest the amount prepaid in any
Treasury obligations as a condition precedent to receiving the Prepayment
Premium.  Notwithstanding the foregoing, no Prepayment Premium shall
be due if this Note is prepaid during the last sixty (60) days prior to the
Maturity Date.

    

    With
respect to the foregoing provisions, Borrower hereby expressly agrees as
follows:

    

    (a)           The
Note Rate provided herein has been determined based on the sum of (i) the
Treasury Rate in effect at the time the Note Rate was determined under the Loan
application submitted to Lender, plus (ii) an interest rate spread over
such Treasury Rate, which together represent Lender’s agreed-upon return for
making the proceeds of the Loan hereunder available to Borrower over the term of
such Loan.

    

    (b)           The
determination of the Note Rate, and in particular the aforesaid interest rate
spread, were based on the expectation and agreement of Borrower and Lender that
the principal sums advanced hereunder would not be prepaid during the term of
this Note, or if any such prepayment occurs, the Prepayment Premium (calculated
in the manner set forth above) would apply (except as expressly permitted by
this Note).

    

    (c)           The
Lender’s business involves making financial commitments to others based in part
on the returns it expects to receive from this Note and other similar loans made
by Lender, and Lender’s financial performance as a business depends not only on
the returns from each loan or investment it makes but also upon the aggregate
amounts of the loans and investments it is able to make over any given period of
time.

     

     

    
      
         

      

      
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    (d)           In
the event of a prepayment hereunder, Lender will be required to redeploy the
funds received into other loans or investments, which (i) may not provide a
return to Lender comparable to the return Lender anticipates based on the Note
Rate and (ii) may reduce the total amount of loans or investments Lender is
able to make during the term of the Loan, which in turn may impair the
profitability of Lender’s business.  Therefore, in order to compensate
Lender for the potential impact and risks to its business of prepayments under
this Note, Lender has limited Borrower’s right to prepay this Note and has
offered the method of calculation of the Prepayment Premium set forth
above.

    

    (e)           Borrower
acknowledges that (i) Lender could have determined that it would not permit
any prepayments under the Note during its term, and therefore, in electing to
permit prepayments hereunder, Lender is entitled to determine and negotiate the
terms on which it will accept prepayments of its loans, and (ii) Borrower
could have elected to negotiate more permissive prepayment provisions and/or a
more favorable manner of calculating the Prepayment Premium, but in such event
the applicable interest rate spread, and therefore the Note Rate, would have
been higher to compensate Lender for the potential loss of income on account of
the risk that Borrower might elect to prepay this Note at an earlier time and/or
for a lesser Prepayment Premium than set forth herein.

    

    Therefore,
in consideration of Lender’s agreement to the Note Rate set forth herein, and in
recognition of Lender’s reliance on the prepayment provisions of this Note
(including the method of calculating the Prepayment Premium), Borrower agrees
that the manner of calculation of the Prepayment Premium set forth in this Note
represents bargained-for compensation to Lender for granting to Borrower the
privilege of prepaying this Note on the terms set forth herein and for the
potential loss of future income to Lender arising from having to redeploy the
amounts prepaid under this Note into other loans or investments.  As
such, the Prepayment Premium constitutes reasonable compensation to Lender for
making the Loan on the terms reflected in this Note and does not represent any
form of damages (liquidated or otherwise), nor does it represent a
penalty.

    

    5.           No
Usury.  Under no circumstances shall the aggregate amount paid
or to be paid as interest under this Note exceed the highest lawful rate
permitted under applicable usury law (“Maximum Rate”).  If
under any circumstances the aggregate amounts paid on this Note shall include
interest payments which would exceed the Maximum Rate, Borrower stipulates that
payment and collection of interest in excess of the Maximum Rate (“Excess Amount”) shall be
deemed the result of a mistake by both Borrower and Lender and Lender shall
promptly credit the Excess Amount against the Balance (without Prepayment
Premium or other premium) or refund to Borrower any portion of the Excess Amount
which cannot be so credited.

    

    6.           Security and Documents
Incorporated.  This Note is the Note referred to and secured by
the Amended, Restated and Consolidated Mortgage and Security Agreement of even
date herewith between Borrower, as mortgagor, and Lender and Prudential, as
mortgagee, to be recorded in the real estate records of Bergen County, New
Jersey (the “Instrument”) and is secured by
the Property.  In addition, this Note is secured by all other
mortgages, deeds of trust and other collateral described in and referenced in
the Loan Agreement.  Borrower shall observe and perform all of the
terms and conditions in the Documents.  The Documents are incorporated
into this Note as if fully set forth in this Note.

    

    7.           Treatment of
Payments.  All payments under this Note shall be made, without
offset or deduction, (a) in lawful money of the United States of America at
the office of Lender or at such other place (and in the manner) Lender may
specify by written notice to Borrower, (b) in immediately available federal
funds, and (c) if received by Lender prior to 2:00 p.m. Eastern Time at
such place, shall be credited on that day, or, if received by Lender on or after
2:00 p.m. Eastern Time at such place, shall, at Lender’s option, be credited on
the next Business Day.  Initially (unless waived by Lender), and until
Lender shall direct Borrower otherwise, Borrower shall make all payments due
under this Note in the manner set forth in Section 3.13 of the Instrument,
and in the event of full compliance by Borrower thereunder, Borrower shall have
no liability for any Late Charges, and it shall not constitute a default or
Event of Default hereunder or under any of the other Documents, if Lender fails
to initiate payment due through the Automated Clearing House network (or similar
electronic process) for settlement on the Due Date in a timely
manner.  If any Due Date falls on a day which is not a Business Day,
then the Due Date shall be deemed to have fallen on the next succeeding Business
Day.

     

     

    
      
         

      

      
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    8.           Limited Recourse
Liability.  Except to the extent set forth in Paragraph 8
and Paragraph 9 of this Note, neither Borrower nor any general or limited
partner(s) or member(s) of Borrower nor any officers, directors, shareholders,
unitholders, general or limited partners, members, employees or agents of
Borrower or its general partners or members shall have any personal liability
for the Loan or any Obligations.  Notwithstanding the preceding
sentence, Lender may bring a foreclosure action or other appropriate action to
enforce the Documents or realize upon and protect the Property (including,
without limitation, naming Borrower and any other necessary parties in the
actions) and
IN ADDITION BORROWER, ANY
GENERAL PARTNER(S) OF BORROWER, MACK-CALI REALTY CORPORATION AND MACK-CALI
REALTY, L.P. (SOMETIMES HEREIN REFERRED TO, SINGULARLY OR COLLECTIVELY,
AS THE “RECOURSE
PARTIES”) SHALL HAVE JOINT AND SEVERAL PERSONAL LIABILITY
FOR:

    

    (a)           any
amounts accrued and/or payable under any indemnities, guaranties, master leases
or similar instruments (which indemnities, guaranties, master leases, and
instruments consist, as of Closing, of the following
instruments:  that certain Environmental and ERISA Indemnity
Agreement, that certain Recourse Liabilities Guaranty, and that certain Partial
Recourse Guaranty, each dated as of even date herewith, and Sections 8.03,
8.04, 8.05, 8.06 and 8.07 of the Instrument) furnished in connection with the
Loan, but excluding indemnities arising solely under Section 8.02 of the
Instrument;

    

    (b)           subject
to Section 4(b) of that certain Cash Management Agreement between Borrower,
Lender and Prudential of even date herewith (the “Cash Management Agreement”),
the amount of any assessments and taxes (accrued and/or payable prior to the
completion by Lender of a foreclosure on the Property or acceptance by Lender of
a deed or other conveyance of the Property in lieu of such foreclosure,
including the pro-rata share of current real estate taxes) with respect to the
Property;

    

    (c)           the
amount of any security deposits, rents prepaid more than one (1) month in
advance, or prepaid expenses of tenants to the extent not turned over to
(i) Lender upon foreclosure, sale (pursuant to power of sale), or
conveyance in lieu thereof, or (ii) a receiver or trustee for the Property
after appointment;

    

    (d)           the
amount of any insurance proceeds or condemnation awards neither turned over to
Lender nor used in compliance with the Documents;

    

    (e)           damages
suffered or incurred by Lender as a result of Borrower (i) entering into a
new Lease, (ii) entering into an amendment or termination of an existing
Lease, or (iii) accepting a termination, cancellation or surrender of an
existing Lease (other than with respect to a Lease with a Major Tenant which is
addressed in Paragraph 9(d) below) in breach of the leasing restrictions
set forth in Section 7 of the Assignment; provided, however, that in the
case of clauses (ii) and (iii) above, the Recourse Parties liability shall be
limited to the greater of:

    

    
      	
               
      

            	
              (1)

            	
              the
      present value (calculated at the Discount Rate) of the aggregate total
      dollar amount (if any) by which (A) rental income and/or other tenant
      obligations prior to the amendment or termination of the Lease exceeds
      (B) rental income and/or other tenant obligations after the amendment
      or termination of such Lease; and

            

    

     

     

    
      
         

      

      
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              (2)

            	
              any
      amendment or termination fee or other consideration paid by or on behalf
      of a tenant;

            

    

    

    provided,
however, that, in such event, such liability shall be limited to the Crossed
Loan (or Crossed Loans) applicable to the Individual Property (or Individual
Properties) in which the Lease is located;

    

    (f)           subject
to Section 4(b) of the Cash Management Agreement, damages suffered or
incurred by Lender by reason of any waste of the Property;

    

    (g)           the
amount of any rents or other income from the Property received by any of the
Recourse Parties after a default under the Documents and not otherwise applied
to the indebtedness under this Note or to the current (not deferred) operating
expenses of the Property;  PROVIDED, HOWEVER, THAT THE RECOURSE
PARTIES SHALL HAVE PERSONAL LIABILITY for amounts paid as expenses to a person
or entity related to or affiliated with any of the Recourse Parties except for
(A) reasonable salaries for on-site employees, (B) a reasonable
allocation of the salaries of off-site employees for accounting and management,
and (C) out-of-pocket expenses of Borrower’s management company relating to
the Property, but in no event shall such expenses include any profit or be
greater than prevailing market rates for any such services;

    

    (h)           the
face amount of any letter of credit required under the Documents or otherwise in
connection with the Loan that (i) Borrower fails to maintain or
(ii) as to which Borrower fails to replace such letter of credit with, or
post in lieu of such letter of credit, a cash deposit paid to Lender and held by
Lender as additional collateral under the Documents;

    

    (i)           the
amount of any security deposit (a “Security Deposit”) cashed or
applied by Borrower or any termination fee, cancellation fee or any other fee
(collectively, a “Lease
Termination Fee”) received by Borrower (x) in connection with a
lease termination, cancellation, surrender or expiration (but Lease Termination
Fees shall not include the application of, or surrender of, lease security
deposits at the scheduled expiration of the applicable lease in lieu of the
payment of the corresponding amount of rentals) within one hundred twenty (120)
days prior to or after an Event of Default under the Documents, (y) which
is greater than one (1) month’s base rent for the Lease to which the Security
Deposit and/or Lease Termination Fee applies, and (z) which is not either
(A) paid to Lender (or an escrow agent selected by Lender) to be disbursed
for the payment of Lender approved (or deemed approved) (1) tenant
improvements and/or (2) market leasing commissions, or, (B) if the
applicable Lease Termination Fees total less than $1,000,000 (with respect to
all of the Crossed Loans and properties that are the subject of the Loan
Agreement) in the aggregate during any such one hundred twenty (120) day period,
actually disbursed by Borrower for the payment of the Obligations (any Lease
Termination Fees that total more than $1,000,000 with respect to all of the
Crossed Loans and properties that are the subject of the Loan Agreement in the
aggregate during any such one hundred twenty (120) day period must, to the
extent in excess of such $1,000,000 aggregate threshold, be paid to Lender for
escrow as set forth in clause (A) to avoid recourse liability resulting under
this clause (i));

    

    (j)           following
a default under the Documents, all attorneys’ fees, including allocated costs of
Lender’s staff attorneys, and other expenses incurred by Lender in enforcing the
Documents if Borrower contests, delays, or otherwise hinders or opposes
(including, without limitation, the filing of a bankruptcy by Borrower or any
owners of any equity interests therein) any of Lender’s enforcement
actions;  provided, however, that if in such action Borrower
successfully proves that no default occurred under the Documents, Borrower shall
not be required to reimburse Lender for such attorneys’ fees, allocated costs
and other expenses; and

     

     

    
      
         

      

      
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    (k)           damages
suffered or incurred by Lender as a result of Borrower’s breach or violation of
Sections 2.10or 3.21 of the Instrument.

    

    (l)           the
“Recourse Guaranteed Amount”, as defined in the Partial Recourse Guaranty of
even date herewith from Mack-Cali Realty, L.P. (“Recourse Guarantor”), which
recourse liability shall be recourse to Borrower, jointly and severally with
Recourse Guarantor, to the same extent that Recourse Guarantor has recourse
liability for the Loan (all indebtedness evidenced by the Note and all
obligations set forth in the Documents) under the Partial Recourse Guaranty, as
Borrower covenants and agrees that the Loan shall be recourse to Borrower,
jointly and severally with Recourse Guarantor, to the same extent that Recourse
Guarantor has recourse liability for the Loan under the Partial Recourse
Guaranty, and that Borrower’s recourse under the Documents with respect to such
liability under the Partial Recourse Guaranty shall be reduced and/or released
at the same time and on the same terms as provided above for Recourse Guarantor;
and

    

    (m)           if,
pursuant to any lease under Section 3.4(c)(iii) of the Loan Agreement,
Borrower shall elect not to pay in full all leasing commissions for the initial
term of such lease (Borrower being required to pay all commissions when due), to
the extent of all leasing commissions for the initial term of such lease that
are not paid in full;

    

    (n)           Borrower
and the Recourse Parties shall, as set forth in Section 8.6 of the Loan
Agreement, have recourse liability for any Additional Parking Costs;
and

    

    (o)           Borrower
and the Recourse Parties shall, as set forth in Section 8.7 of the Loan
Agreement, have recourse liability for any Tuttle Title Loss.

    

    9.           Full Recourse
Liability.  Notwithstanding the provisions of Paragraph 8
of this Note, the RECOURSE
PARTIES SHALL HAVE JOINT AND SEVERAL PERSONAL LIABILITY for all
indebtedness evidenced by this Note and all Obligations set forth in the
Documents if:

    

    (a)           there
shall be any breach or violation of Article V of the Instrument; or

    

    (b)           there
shall be any fraud or material misrepresentation by any of the Recourse Parties
in connection with the Property, the Documents, the Loan Application, or any
other aspect of the Loan; or

    

    (c)           the
Property or any part thereof shall become an asset in (i) a voluntary
bankruptcy or insolvency proceeding or (ii) an involuntary bankruptcy or
insolvency proceeding which is not dismissed within ninety (90) days of
filing;  provided, however, that this Paragraph 9(c) shall not
apply if (A) an involuntary bankruptcy is filed by Lender, or (B) the
involuntary filing was initiated by a third-party creditor independent of any
collusive action, participation or collusive communication by (1) Borrower,
(2) any partner, shareholder or member of Borrower or Borrower’s general
partner or managing member, or (3) any of the Recourse Parties;
or

    

    (d)           any
of the Recourse Parties (i) enters into a Lease with a Major Tenant,
(ii) enters into an amendment or termination of any Lease with a Major
Tenant, or (iii) accepts the termination, cancellation or surrender of any
Lease with a Major Tenant, in breach of the leasing restrictions set forth in
Section 7 of the Assignment; provided, however, that, in such event, such
liability shall be limited to the Crossed Loan (or Crossed Loans) applicable to
the Individual Property (or Individual Properties) in which the Lease is
located, except that in the event that the damages suffered or incurred by
Lender as a result of any of the Recourse Parties taking any such action
described in clauses (i), (ii) or (iii) above exceeds the amount of such Crossed
Loan (or Crossed Loans) applicable to the Individual Property (or Individual
Properties) in which the Lease is located, then the Recourse Parties shall have
joint and several personal liability for all such damages suffered or incurred
by Lender as a result of any of the Recourse Parties taking any such action
described in clauses (i), (ii) or (iii) above.

     

     

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    
 

    10.           Joint and Several
Liability.  This Note shall be the joint and several obligation
of all makers, endorsers, guarantors and sureties, and shall be binding upon
them and their respective successors and assigns and shall inure to the benefit
of Lender and its successors and assigns.

    

    11.           Unconditional
Payment.  Borrower is and shall be obligated to pay principal,
interest and any and all other amounts which became payable hereunder or under
the other Documents absolutely and unconditionally and without abatement,
postponement, diminution or deduction and without any reduction for counterclaim
or setoff.  In the event that at any time any payment received by
Lender hereunder shall be deemed by a court of competent jurisdiction to have
been a voidable preference or fraudulent conveyance under any bankruptcy,
insolvency or other debtor relief law, then the obligation to make such payment
shall survive any cancellation or satisfaction of this Note or return thereof to
Borrower and shall not be discharged or satisfied with any prior payment thereof
or cancellation of this Note, but shall remain a valid and binding obligation
enforceable in accordance with the terms and provisions hereof, and such payment
shall be immediately due and payable upon demand.

    

    12.           Certain
Waivers.  Borrower and all others who may become liable for the
payment of all or any part of the Obligations do hereby severally waive
presentment and demand for payment, notice of dishonor, protest and notice of
protest, notice of non-payment and notice of intent to accelerate the maturity
hereof (and of such acceleration).  No release of any security for the
Obligations or extension of time for payment of this Note or any installment
hereof, and no alteration, amendment or waiver of any provision of this Note,
the Instrument or the other Documents shall release, modify, amend, waive,
extend, change, discharge, terminate or affect the liability of Borrower, and
any other who may become liable for the payment of all or any part of the
Obligations, under this Note, the Instrument and the other Documents, except to
the extent expressly altered, amended or changed thereby.

    

    13.           WAIVER OF
TRIAL BY JURY.  EACH OF BORROWER AND
LENDER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM FILED BY EITHER PARTY, WHETHER
IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE
DOCUMENTS, OR ANY ALLEGED ACTS OR OMISSIONS OF LENDER OR BORROWER IN CONNECTION
THEREWITH.

     

     

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    
 

    IN WITNESS WHEREOF, this Note
has been duly executed by Borrower as of the date first set forth
above.

    

    
      	 
      	
              BORROWER:

               

              MACK-CALI REALTY, L.P.,
      a Delaware limited partnership

               

              By:  
      MACK-CALI REALTY CORPORATION, a Maryland corporation, General
      Partner

               

              By: ____________________

              Name:  Barry
      Lefkowitz

              Title:  Executive
      Vice President and Chief Financial Officer

               

            

    

    

    
      
         

      

      
        -10-ex106.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.6

    

    Loan
No. ________ and _______

    

    Dated as
of January 15, 2010

    

    RECOURSE LIABILITIES
GUARANTY

    

    FOR VALUE RECEIVED, the
receipt and sufficiency of which is hereby acknowledged, and in accordance with
the terms provided below, the undersigned, MACK-CALI REALTY CORPORATION,
a Maryland corporation, and MACK-CALI REALTY, L.P., a
Delaware limited partnership (whether one or more, hereinafter together called
“Guarantor” in the
singular), absolutely and unconditionally guarantees and agrees to pay to THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, a New Jersey corporation (“Prudential”), and VPCM, LLC, a Virginia limited
liability company (“VPCM”) (collectively hereinafter called “Lender”) at the address
designated in the Note (as hereinafter defined) for payment thereof or as such
address may be changed as provided in the Note or the Instrument, all Recourse
Liabilities (defined below) of __________________
(hereinafter called “Borrower”), under Paragraphs 8
and 9 of the Note (defined below) (all such indebtedness is hereinafter called
the “Recourse
Liabilities”), and absolutely and unconditionally covenants and agrees
with Lender pursuant to the terms of this Recourse Liabilities Guaranty
(hereinafter called “Guaranty”), as
follows:

    

    1.           As
used in this Guaranty, the term (i) “Documents” shall have the same
meaning as set forth in the Instrument (defined below); (ii) “Obligations” shall have the
same meaning as set forth in the Instrument; (iii) “Note” shall refer,
collectively, to that certain Amended, Restated and Consolidated Promissory Note
in favor of Prudential in the original principal amount of _____________
($_________) and that certain Amended, Restated and Consolidated Promissory Note
in favor of VPCM in the original principal amount of _____________ ($_________),
each made by Borrower of even date herewith, in the aggregate original principal
amount of _____________ ($_________), as the same may be modified, amended,
renewed, extended, and/or substituted, which Note is secured by the Instrument
(as hereinafter defined); (iv) “Instrument” shall refer to
that certain Amended, Restated and Consolidated Mortgage and Security Agreement
of even date herewith, from Borrower to or for the benefit of Lender, and
recorded or to be recorded in the public records of __________; (v) “Property” shall have the same
meaning as set forth in the Instrument; (vi) “Loan” shall have the same
meaning as set forth in the Instrument; (vii) “Costs” shall have the same
meaning as set forth in the Instrument; and (viii) “Recourse Liabilities” shall
mean all limited and full recourse indebtedness of Borrower under Paragraphs 8
and 9 of the Note (it being noted that, as set forth in Subparagraph 8(b)
and Subparagraph 8(f) of each Note, Subparagraph 8(b) and
Subparagraph 8(f) are subject to Section 4(b) of that certain Cash
Management Agreement between Borrower and Lender of even date
herewith).  Capitalized terms used herein and not defined herein shall
have the meaning ascribed to such terms in the Instrument.

    

    2.           Without
in any way limiting the liability of Guarantor under that certain Environmental
and ERISA Indemnity Agreement made by Guarantor and Borrower in favor of Lender
of even date herewith (the “Environmental Indemnity”), in
the event Borrower fails to pay the Recourse Liabilities when due, Guarantor
shall upon written demand of Lender promptly (not later than five (5) days after
written demand) and with due diligence pay to and for the benefit of Lender all
of the Recourse Liabilities, and, in addition, Guarantor further agrees to pay
any and all Costs incurred or expended by Lender in collecting any of the
Recourse Liabilities or in enforcing any right granted hereunder.

    

    3.           Guarantor’s
liability under this Guaranty shall be fully recourse and the Recourse
Liabilities are expressly not subject to, or limited by, any limitations on
Borrower’s liability set forth in the Note, and Guarantor agrees and
acknowledges that Lender is relying upon the full recourse nature of this
Guaranty in making the Loan to Borrower.  Further, the scope of this
Guaranty shall in no way affect or limit any liability of Guarantor in its
capacity as an “Indemnitor” under the Environmental Indemnity.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
 

    4.           In
the event that Lender elects to foreclose or to accept a deed-in-lieu of
foreclosure under the Instrument, Guarantor hereby acknowledges and agrees that
Guarantor’s recourse liability under this Guaranty as determined above shall be
calculated after deduction from the outstanding Obligations (including, but not
limited to, all principal, accrued interest, Prepayment Premium [as defined in
the Note], advances and other charges) of (i) the amount of money bid by or
received by Lender at a foreclosure sale, or (ii) the value of the Property
and any other property received by Lender as consideration for acceptance of a
deed-in-lieu of foreclosure.

    

    5.           In
the event that Lender accepts a deed-in-lieu of foreclosure, the value of the
Property and any other property received by Lender shall be conclusively
determined by an independent MAI appraiser, selected by Lender in its sole
discretion, having not less than five (5) years’ experience in appraising
commercial real estate in the area where the Land is located, unless in
connection with such acceptance of such deed-in-lieu of foreclosure Lender
agrees to an alternate valuation.  The fees and costs of said MAI
appraiser shall be paid by Borrower.

    

    6.           Guarantor’s
recourse liability under this Guaranty shall continue with respect to any and
all Recourse Liabilities, until Lender has been paid the full amount of the
Obligations and the Recourse Liabilities from any person or
entity at the time of foreclosure or following an Event of Default; provided,
however, that Guarantor’s recourse liability under this Guaranty shall be in
addition to, and not in lieu of, any liability or obligations of Guarantor under
any other document or other instrument delivered by Guarantor in connection with
the Loan.

    

    7.           Guarantor
also acknowledges and agrees that Lender shall have the right to seek collection
of the recourse portion of the Loan under this Guaranty from Guarantor without
commencement of any foreclosure proceedings.

    

    8.           Guarantor
expressly waives presentment for payment, demand, notice of demand and of
dishonor and nonpayment of the Recourse Liabilities, notice of intention to
accelerate the maturity of the Recourse Liabilities or any part thereof, notice
of disposition of collateral, notice of acceleration of the maturity of the
Recourse Liabilities or any part thereof, protest and notice of protest,
diligence in collecting, and the bringing of suit against any other
party.  Guarantor agrees that Lender shall be under no obligation to:
(i) notify Guarantor of its acceptance of this Guaranty or of any advances
made or credit extended on the faith of this Guaranty; (ii) notify
Guarantor of Borrower’ s failure to make payments due under the Note as it
matures or the failure of Borrower to pay any of the Recourse Liabilities as
they mature or any default in performance of any obligations required by the
Note, the Instrument or any other Document; (iii) use diligence in
preserving the liability of any person with respect to the Recourse Liabilities,
or with respect to the Note, the Instrument or any other Document; (iv) use
diligence in collecting payments or demanding performance required by the terms
of the Note, the Instrument or any other Document; or (v) bring suit
against, or take any other action against, any party to enforce collection of
the Note, the Instrument or any other Document.

    

    9.           Guarantor
waives all legal defenses (at law or in equity) given or available to sureties
or guarantors other than the actual payment in full of all Recourse Liabilities,
and waives all legal defenses (at law or in equity) based upon the validity,
legality or enforceability of the Note, the Instrument or any other Document
(including, without limitation, any claim that the Note, the Instrument or any
other Document is or was in any way usurious), or otherwise with respect to the
following actions with respect to the Recourse Liabilities or Obligations, as to
which Guarantor consents that Lender may from time to time, before or after any
default by the Borrower, with or without further notice to or assent from
Guarantor:

     

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              (a)

            	
              exchange
      with, release or surrender, either with or without consideration, to the
      Borrower or to any Guarantor, pledgor or grantor any collateral, or waive,
      release or subordinate any security interest, in whole or in part, now or
      hereafter held as security for the Loan and/or any of the
      Obligations;

            

    

    

    
      	
               
      

            	
              (b)

            	
              waive
      or delay the exercise of any of its rights or remedies against any person
      or entity, including but not limited to the Borrower and/or any guarantor,
      which waiver or delay shall not preclude the Lender from further exercise
      of any of its rights, powers or privileges expressly provided for herein
      or otherwise available, it being understood that all such rights and
      remedies are cumulative;

            

    

    

    
      	
               
      

            	
              (c)

            	
              release,
      either fully or partially, any person or entity, including but not limited
      to the Borrower, guarantor, endorser, surety or any judgment
      debtor;

            

    

    

    
      	
               
      

            	
              (d)

            	
              proceed
      against the Guarantor for payment of the Recourse Liabilities, without
      first proceeding against or joining the Borrower, any other guarantor,
      surety, endorser of the Note, or any property securing payment of the
      Note, the Instrument, or any other Loan
  Documents;

            

    

    

    
      	
               
      

            	
              (e)

            	
              renew,
      extend or modify the terms of the Loan or any instrument or agreement
      evidencing the Loan and/or any of the
  Obligations;

            

    

    

    
      	
               
      

            	
              (f)

            	
              apply
      payments by the Borrower, the Guarantor, or any other person or entity to
      the reduction of the Loan and/or Obligations in such manner and in such
      amounts and at such time or times and in such order and priority as Lender
      shall determine;

            

    

    

    
      	
               
      

            	
              (g)

            	
              permit
      any sale, transfer or encumbrance of the Property or any part thereof;
      and

            

    

    

    
      	
               
      

            	
              (h)

            	
              generally
      deal with the Borrower or any of the security or other person or party as
      the Lender shall determine.

            

    

    

    The
Guarantor hereby ratifies and confirms any such exchange, release, surrender,
subordination, waiver, delay, proceeding, renewal, extension, modification or
application, or other dealing, all of which actions shall be binding upon
Guarantor who hereby waives all defenses, counterclaims or set-offs which
Guarantor might otherwise have as a result of such actions, and who hereby
agrees to remain bound under this Guaranty.  In accordance with the
terms of this Guaranty, Guarantor agrees and acknowledges that it shall be
primarily liable for payment of the Recourse Liabilities (subject only to the
limitations set forth above) in the event of default or
foreclosure.

    

    10.           Guarantor
acknowledges and agrees that from time to time, at Lender’s discretion, with or
without valuable consideration, without authorization from or notice to
Guarantor, and without impairing, modifying, releasing, limiting or otherwise
affecting Guarantor ’s liability under this Guaranty, Lender may:
(i) alter, compromise, accelerate, renew, extend or change the time or
manner for the payment of any or all of the Obligations due under the Note, the
Instrument or any other Document (including, but not limited to, with respect to
any Recourse Liabilities); (ii) increase or reduce the rate of interest
with respect to the Note or Loan; (iii) take and surrender security,
exchange security by way of substitution, or in any way Lender deems necessary
take, accept, withdraw, subordinate, alter, amend, modify or eliminate security;
(iv) add or release or discharge endorsers, guarantors or other obligors;
(v) make changes of any kind whatsoever in the terms of the Note, the
Instrument or any other Document; (vi) make changes of any kind whatsoever
in the manner Lender does business with Borrower; (vii) settle or
compromise with Borrower or any other person(s) liable on the Note, the
Instrument or any other Document (including, but not limited to, any person(s)
liable with respect to any Recourse Liabilities) on such terms as Lender
determines; (viii) apply all moneys received from Borrower or others, or
from any security held (whether or not held under a mortgage, deed of trust,
deed to secure debt or other instrument), in such manner upon the Note or upon
any other obligation arising under the Instrument or any other Document (whether
then due or not) as Lender determines to be in its best interest (including, but
not limited to, application with respect to any Recourse Liabilities), and
without in any way being required to marshal securities or assets or to apply
all or any part of such moneys upon any particular part of the Note, the
Instrument or any other Document, except to the extent as may be expressly
provided therein.

     

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
 

    11.           Guarantor
agrees that Lender is not required to retain, hold, protect, exercise due care
with respect to, perfect security interests in, or otherwise assure or safeguard
any security for the Note or the Loan.  Guarantor agrees and
acknowledges that Lender’s failure to do any of the foregoing and Lender’s
failure to exercise any other right or remedy available to Lender shall in no
way affect or alter any of Guarantor’s obligations under this Guaranty or any
security furnished by Guarantor, or give Guarantor any recourse against
Lender.

    

    12.           Guarantor
agrees that its liability under this Guaranty shall not be modified, changed,
released, limited or impaired in any manner whatsoever on account of any or all
of the following: (i) the incapacity, death, disability, dissolution or
termination of Guarantor, Borrower, Lender or any other person or entity;
(ii) the failure by Lender to file or enforce a claim against the estate
(either in administration, bankruptcy or other proceeding) of Borrower or any
other person or entity; (iii) the inability of Lender, Guarantor or any
other person or entity to recover from Borrower or any other party due to the
expiration of any statute of limitations or due to any other cause whatsoever;
(iv) the claim or assertion (whether or not successful) by Borrower or any
other person or entity of any available defenses, set-off rights or
counterclaims (other than payment in full of the Obligations) during any
judicial, arbitration, or mediation proceeding; (v) the transfer(s) of any
portion of the Property encumbered by the Instrument or of any other secured
collateral by other instrument securing payment of the Obligations;
(vi) any modifications, extensions, amendments, consents, releases or
waivers with respect to the Note, the Instrument or any other Document,
including, but not limited to, any other instrument that may now or hereafter
secure the payment of the Obligations or this Guaranty; (vii) Lender’s
failure to give any notice to Guarantor of any default under the Note, the
Instrument or any other Document, including, but not limited to, any other
instrument securing the payment of the Obligations or this Guaranty;
(viii) Guarantor is or becomes liable for any indebtedness owed by Borrower
to Lender other than that which is secured by this Guaranty; or (ix) any
impairment, modification, change, release or limitation of the liability of, or
stay of actions or lien enforcement proceedings against, Borrower, its property,
or its estate in bankruptcy resulting from the operation of any present or
future provision of 11 U.S.C. §101 et. seq. or any other present
or future federal or state insolvency, bankruptcy or similar law (all of the
foregoing hereinafter collectively called “Applicable Bankruptcy Law”) or
from the decision of any court.

    

    13.           Guarantor
agrees and acknowledges that Lender shall not be required to (i) pursue any
other remedies before invoking the benefits of the guaranties contained in this
Guaranty, or (ii) make demand upon or institute suit or otherwise pursue or
exhaust its remedies against Borrower or any surety other than Guarantor or to
proceed against any security now or hereafter existing for the payment of any of
the Obligations (including, but not limited to, the Recourse
Liabilities).  Guarantor also acknowledges that Lender may maintain an
action on this Guaranty without joining Borrower in such action and without
bringing a separate action against Borrower.

     

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
 

    14.           If
the Note, the Instrument or any other Document cannot be enforced against
Borrower for any reason whatsoever (including but not limited to the legal
defenses of ultra
vires, lack of authority, illegality, force majeure, act of God,
usury or impossibility), such unenforceability shall not affect Guarantor’s
liability under this Guaranty.  Guarantor agrees that it shall be
liable to the extent provided in this Guaranty notwithstanding the fact that
Borrower may be held not to be liable for such Obligations or not liable to the
same extent as Guarantor’s liability.

    

    15.           Guarantor
agrees that in the event that Borrower does not or otherwise is unable to pay
the Obligations for any reason (including, without limitation, liquidation,
dissolution, receivership, conservatorship, insolvency, bankruptcy, assignment
for the benefit of creditors, sale of all or substantially all assets,
reorganization, arrangement, composition, or readjustment of, or other similar
proceedings affecting the status, composition, identity, existence, assets or
obligations of Borrower, or the disaffirmance or termination of any of the
Recourse Liabilities or Obligations in or as a result of any such proceeding),
Guarantor shall pay the Recourse Liabilities and such occurrence shall in no way
affect Guarantor’s obligations under this Guaranty.

    

    16.           Should
the status, structure or composition of Borrower change, Guarantor agrees that
this Guaranty shall continue and shall also cover the Recourse Liabilities of
Borrower under the new status, structure or composition of Borrower, or of
Borrower’s successor.  This Guaranty shall remain in full force and
effect notwithstanding any transfer of the Property encumbered by the
Instrument.

    

    17.           In
the event any payment by Borrower to Lender is held to constitute a preference
under any Applicable Bankruptcy Law, or if for any other reason Lender is
required to refund or does refund such payment or pay such amount to any other
party, Guarantor acknowledges that such payment by Borrower to Lender shall not
constitute a release of Guarantor from any liability under this Guaranty, but
Guarantor agrees to pay such amount to Lender upon demand and this Guaranty
shall continue to be effective or shall be reinstated, as the case may be, to
the extent of any such payment or payments.

    

    18.           Guarantor
agrees that it shall not have (i) the right to the benefit of, or to direct
the application of, any security held by Lender (including the Property covered,
conveyed or encumbered by the Instrument and any other instrument securing the
payment of the Obligations), (ii) any right to enforce any remedy which
Lender now has or hereafter may have against Borrower, or (iii) any right
to participate in any security now or hereafter held by Lender.

    

    19.           Guarantor
also agrees that it shall not have (i) any defense arising out of the
absence, impairment or loss of any right of reimbursement or subrogation or
other right or remedy of Guarantor against Borrower or against any security
resulting from the exercise or election of any remedies by Lender (including the
exercise of the power of sale under the Instrument), or (ii) any defense
arising by reason of any disability or other defense of Borrower or by reason of
the cessation, from any cause (other than as a result of payment in full of the
Obligations, including, but not limited to, the Recourse Liabilities), of
Borrower’s liability under the Note, the Instrument or any other
Document.

    

    20.           Guarantor
agrees that any payment it makes of any amount pursuant to this Guaranty shall
not in any way entitle Guarantor to any right, title or interest (whether by way
of subrogation or otherwise) in and to the Note, the Instrument or any other
Document, or any proceeds attributable to the Note, the Instrument or any other
Document, unless and until the full amount of the Obligations owing to Lender
has been fully paid.  At such time as the full amount of the
Obligations owing to Lender has been fully paid, Guarantor shall be subrogated
as to any payments made by it to Lender’s rights against Borrower and/or any
endorsers, sureties or other guarantors.  For the purposes of the
preceding sentence only, the full amount of the Obligations shall not be deemed
to have been paid in full by foreclosure of the Instrument or by acceptance of a
deed-in-lieu of foreclosure, and Guarantor hereby waives and disclaims any
interest which it might have in the Property encumbered by the Instrument or
other collateral security for the Obligations, by subrogation or otherwise,
following such foreclosure or Lender’s acceptance of a deed-in-lieu of
foreclosure.

     

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    
 

    21.           Guarantor
expressly subordinates its rights to payment of any indebtedness owing from
Borrower to Guarantor (including, but not limited to, property management and
construction management fees and leasing commissions, subject, however, to any
rights under those certain Conditional Assignments of Management Agreement and
Subordination of Management Agreement and Management Fees), whether now existing
or arising at any time in the future, to the right of Lender to first receive or
require payment of the Obligations in full (and including interest accruing on
the Note after any petition under Applicable Bankruptcy Law, which post-petition
interest Guarantor agrees shall remain a claim that is prior and superior to any
claim of Guarantor notwithstanding any contrary practice, custom or ruling in
proceedings under such Applicable Bankruptcy Law).  Guarantor further
agrees, upon the occurrence of an Event of Default (subject, however, to any
rights under those certain Conditional Assignments of Management Agreement and
Subordination of Management Agreement and Management Fees), not to accept any
payment or satisfaction of any kind of indebtedness of Borrower to Guarantor or
any security for such indebtedness without Lender’s prior written
consent.  If Guarantor should receive any such payment, satisfaction
or security for any indebtedness owed by Borrower to Guarantor, Guarantor agrees
to deliver the same without delay to Lender in the form received, endorsed or
assigned for application on account of, or as security for, the Recourse
Liability; until such payment, satisfaction or security is delivered, Guarantor
agrees to hold the same in trust for Lender.

    

    22.           Under
no circumstances shall the aggregate amount paid or agreed to be paid under this
Guaranty exceed the highest lawful rate permitted under applicable usury law
(the “Maximum Rate”) and
the payment obligations of Guarantor hereunder are hereby limited
accordingly.  If under any circumstances, whether by reason of
advancement or acceleration of the unpaid principal balance of the Note or
otherwise, the aggregate amounts paid hereunder shall include amounts which by
law are deemed interest and which could exceed the Maximum Rate, Guarantor
stipulates that payment and collection of such excess amounts shall have been
and will be deemed to have been the result of a mistake on the part of both
Guarantor and Lender, and Lender shall promptly credit such excess (only to the
extent such interest payments are in excess of the Maximum Rate) against the
unpaid principal balance of the Note, and any portion of such excess payments
not capable of being so credited shall be refunded to Guarantor.  The
term “applicable law” as
used in this paragraph shall mean the laws of the Property State (as such term
is defined in the Instrument) or the laws of the United States, whichever laws
allow the greater rate of interest, as such laws now exist or may be changed or
amended or come into effect in the future.

    

    23.           Guarantor
hereby represents, warrants and covenants to and with Lender as follows:
(i) the making of the Loan by Lender to Borrower is and will be of direct
interest, benefit and advantage to Guarantor; (ii) Guarantor is solvent, is
not bankrupt and has no outstanding liens, garnishments, bankruptcies or court
actions which could render Guarantor insolvent or bankrupt; (iii) there has
not been filed by or against Guarantor a petition in bankruptcy or a petition or
answer seeking an assignment for the benefit of creditors, the appointment of a
receiver, trustee, custodian or liquidator with respect to Guarantor or any
substantial portion of Guarantor’s property, reorganization, arrangement,
rearrangement, composition, extension, liquidation or dissolution or similar
relief under Applicable Bankruptcy Law; (iv) all reports, financial
statements and other financial and other data which have been or may hereafter
be furnished by Guarantor to Lender in connection with this Guaranty are or
shall be true and correct in all material respects and do not and will not omit
to state any fact or circumstance necessary to make the statements contained
therein not misleading and do or shall fairly represent the financial condition
of Guarantor as of the dates and the results of Guarantor’s operations for the
periods for which the same are furnished, and no material adverse change has
occurred since the dates of such reports, statements and other data in the
financial condition of Guarantor; (v) the execution, delivery and
performance of this Guaranty do not contravene, result in the breach of or
constitute a default under any mortgage, deed of trust, lease, promissory note,
loan agreement or other contract or agreement to which Guarantor is a party or
by which Guarantor or any of its properties may be bound or affected and do not
violate or contravene any law, order, decree, rule or regulation to which
Guarantor is subject; (vi) there are no judicial or administrative actions,
suits or proceedings pending or, to the best of Guarantor’s knowledge,
threatened against or affecting Guarantor which would have a material adverse
effect on either the Property or Borrower’s ability to perform its obligations,
or involving the validity, enforceability or priority of this Guaranty; and
(vii) this Guaranty constitutes the legal, valid and binding obligation of
Guarantor enforceable in accordance with its terms.

     

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    
 

    24.           Guarantor
will furnish to Lender the financial statements and other information as to
Guarantor as are described in Section 3.15 of the Instrument, on or before
the deadlines set forth therein.  Guarantor will provide to Lender
such other financial information and statements concerning Guarantor's financial
status as Lender may request from time to time, all of which shall be in form
and substance acceptable to Lender.  Guarantor shall be in default
hereunder if there is any falsity in any material respect or any material
omission in any representation or statement made by Guarantor to Lender or in
any information furnished Lender, by or on behalf of Borrower or Guarantor, in
connection with the Loan and/or any of the Obligations, as determined by Lender
in its sole and absolute discretion.

    

    25.           Guarantor
further agrees to the following:

    

    (a)           Where
two or more persons or entities have executed this Guaranty, unless the context
clearly indicates otherwise, all references herein to “Guarantor” shall mean the
guarantors hereunder or either or any of them.  All of the obligations
and liability of said guarantors hereunder shall be joint and
several.  Suit may be brought against said guarantors, jointly and
severally, or against any one or more of them, or less than all of them, without
impairing the rights of Lender against the other or others of said
guarantors.  Lender may compound with any one or more of said
guarantors for such sums or sum as it may see fit and/or release such of said
guarantors from all further liability to Lender for such indebtedness without
impairing the right of Lender to demand and collect the balance of such
indebtedness from the other or others of said guarantors not so compounded with
or released.  However, said guarantors agree that such compounding and
release shall in no way impair the their rights as among
themselves.

    

    (b)           Except
as otherwise provided herein, the rights of Lender are cumulative and shall not
be exhausted by its exercise of any of its rights under this Guaranty or
otherwise against Guarantor or by any number of successive actions, until and
unless all Recourse Liabilities have been paid and each of the obligations of
Guarantor under this Guaranty have been performed.

    

    (c)           Intentionally
Omitted.

    

    (d)           Any
notice or communication required or permitted under this Guaranty shall be given
in writing, sent by (i) personal delivery, or (ii) expedited delivery
service with proof of delivery, or (iii) United States mail, postage
prepaid, registered or certified mail, sent to the intended addressee at the
address shown below, or to such other address or to the attention of such other
person(s) as hereafter shall be designated in writing by the applicable party
sent in accordance herewith.  Any such notice or communication shall
be deemed to have been given and received either at the time of personal
delivery or, in the case of delivery service or mail, as of the date of first
attempted delivery on a business day at the applicable address and in the manner
provided herein.

     

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
 

    (e)           This
Guaranty shall be deemed to have been made under and shall be governed in all
respects by the laws of the Property State.

    

    (f)           This
Guaranty may be executed in any number of counterparts with the same effect as
if all parties hereto had signed the same document.  All such
counterparts shall be construed together and shall constitute one instrument,
but in making proof hereof it shall only be necessary to produce one such
counterpart.

    

    (g)           This
Guaranty may only be modified, waived, altered or amended by a written
instrument or instruments executed by the party against which enforcement of
said action is asserted.  Any alleged modification, waiver, alteration
or amendment which is not so documented shall not be effective as to any
party.

    

    (h)           The
books and records of Lender showing the accounts between Lender and Borrower
shall be admissible in any action or proceeding arising from this Guaranty as
prima facie evidence
for any claim whatsoever, absent manifest error.

    

    (i)           Guarantor
waives and renounces any and all homestead or exemption rights Guarantor may
have under the United States Constitution, the laws of the Property State, or
the laws of any state as against Guarantor, and Guarantor transfers, conveys and
assigns to Lender a sufficient amount of such homestead or exemption as may be
allowed, including such homestead or exemption as may be set apart in
bankruptcy, to pay and perform the obligations of Guarantor arising under this
Guaranty.  Guarantor hereby directs any trustee in bankruptcy having
possession of such homestead or exemption to deliver to Lender a sufficient
amount of property or money set apart as exempt to pay and perform such
Guarantor obligations.

    

    (j)           The
terms, provisions, covenants and conditions of this Guaranty shall be binding
upon Guarantor, its heirs, devisees, representatives, successors and assigns,
and shall inure to the benefit of Lender and Lender’s transferees, credit
participants, successors, assigns and/or endorsees.

    

    (k)           Within
this Guaranty, the words of any gender shall be held and construed to include
any other gender, and the words in the singular number shall be held and
construed to include the plural and the words in the plural number shall be held
and construed to include the singular, unless the context otherwise
requires.

    

    (l)           A
determination that any provision of this Guaranty is unenforceable or invalid
shall not affect the enforceability or validity of any other provision, and any
determination that the application of any provision of this Guaranty to any
person or circumstance is illegal or unenforceable shall not affect the
enforceability or validity of such provision as it may apply to any other
persons or circumstances.  Accordingly, the provisions of this
Guaranty are declared to be severable.

     

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    
 

    THIS GUARANTY is executed as of the
date and year first above written.

    

    
      	 
      	
              GUARANTOR:

               

              MACK-CALI REALTY, L.P.,
      a Delaware limited partnership

               

              By:MACK-CALI
      REALTY CORPORATION, a Maryland corporation, General Partner

               

              By:  _____________________                                                

              Name:  Barry
      Lefkowitz

              Title:  Executive
      Vice President and Chief Financial Officer

               

              MACK-CALI REALTY
      CORPORATION, a Maryland
      corporation

               

              By:   _________________________                                                            

              Name: Barry
Lefkowitz

              Title:  Executive Vice
      President and Chief Financial Officer

               

            

    

    

    The
address of Guarantor is:

     

    
      

      
        	
                 
      

              	
                Mack-Cali
      Realty Corporation and Mack-Cali Realty,
L.P.

              

      

    

    
      
        	
                 
      

              	
                c/o Mack-Cali
      Realty Corporation

              

      

    

    
      
        	
                 
      

              	
                343 Thornall
      Street

              

        
          	
                   
      

                	
                  Edison,
      New Jersey  08837

                

          
            	
                     
      

                  	Attn: Mitchell E. Hersh, President and Chief Executive
  Officer

        

      

    

    With a copy to:

    

    
      	
               
      

            	
              General
      Counsel

            

    

    
      	
               
      

            	
              Mack-Cali
      Realty Corporation

            

    

    
      	
               
      

            	
              343 Thornall
      St.

            

    

    
      	
               
      

            	
              Edison,
      New Jersey 08837

            

    

    
      	
               
      

            	
              Attention:  Roger
      W. Thomas

            

    

    

    The
address of Lender is:

     

    
      

      
        	
                 
      

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA AND VPCM,
  LLC

              

      

    

    
      	
               
      

            	
              c/o Prudential
      Asset Resources, Inc.

            

    

    
      	
               
      

            	
              2100 Ross
      Avenue, Suite 2500

            

    

    
      	
               
      

            	
              Dallas,
      Texas   75201

            

    

    
      	
               
      

            	
              Attention:  Asset
      Management Department;  Reference Loan No. _______ and
      __________

            

    

     

     

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    
 

    With a copy to:

     

    
      

      
        	
                 
      

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF
AMERICA

              

      

    

    
      	
               
      

            	
              c/o Prudential
      Asset Resources, Inc.

            

    

    
      	
               
      

            	
              2100 Ross
      Avenue, Suite 2500

            

    

    
      	
               
      

            	
              Dallas,
      Texas   75201

            

    

    
      	
               
      

            	
              Attention:  Legal
      Department;  Reference Loan No. ________ and
      __________

            

    

    
      
        
           

        

         

      

      
        -10-

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