Document:

May
      2,
      2006

    

    Affinity
      Media
      International Corp.

    11601
      Wilshire Blvd., Suite 1500

    Los
      Angeles, CA 90025

    

    Maxim
      Group LLC

    405
      Lexington Avenue

    New
      York,
      NY 10174

    

    Re: Initial
      Public Offering

    

    Gentlemen:

    

    The
      undersigned stockholder of Affinity International Corp. (“Company”), in
      consideration of Maxim Group LLC (“Maxim”) entering into a letter of intent
      (“Letter of Intent”) to underwrite an initial public offering of the securities
      of the Company (“IPO”) and embarking on the IPO process, hereby agrees as
      follows (certain capitalized terms used herein are defined in paragraph 11
      hereof):

    

    1. If
      the
      Company solicits approval of its stockholders of a Business Combination, the
      undersigned will vote (i) all
      Insider Shares owned by him in accordance with the majority of the votes cast
      by
      the holders of the IPO Shares
      and (ii)
      all of the shares that may be acquired by him in the Private Placement, the
      IPO
      or in the aftermarket for the Business Combination.

    

    2. In
      the
      event that the Company fails to consummate a Business Combination within
18
      months
      from the effective date (“Effective Date”) of the registration statement
      relating to the IPO (or 24
      months
      under the circumstances described in the prospectus relating to the IPO), the
      undersigned will take all reasonable actions within his power to cause the
      Company to liquidate as soon as reasonably practicable. In such event, the
      undersigned hereby waives any and all right, title, interest or claim of any
      kind in or to any liquidating distributions by the Company, including, without
      limitation, any distribution of the Trust Fund (as defined in the Letter of
      Intent) as a result of such liquidation with respect to his Insider
      Shares
      and the Private Placement
      Shares
      (“Claim”) and hereby waives any Claim the undersigned may have in the future as
      a result of, or arising out of, any contracts or agreements with the Company
      and
      will not seek recourse against the Trust Fund for any reason whatsoever.

    

    3. In
      order
      to minimize potential conflicts of interest which may arise from multiple
      affiliations, the undersigned agrees to present to the Company for its
      consideration, and not to any other person or entity unless the opportunity
      is
      rejected by the Company, those opportunities to acquire an operating company
      the
      undersigned reasonably believes are suitable opportunity for the Company, until
      the earlier of the consummation by the Company of a Business Combination, the
      liquidation of the Company or until such time as the undersigned ceases to
      be an
      officer, director or advisor of the Company, subject to any fiduciary
      obligations the undersigned might have.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        Affinity
          Media
          International Corp.

        Maxim
          Group LLC 

      

       

    

    4. The
      undersigned acknowledges and agrees that the Company will not consummate any
      Business Combination which involves a company which is affiliated with any
      of
      the Insiders unless the Company obtains an opinion from an independent
      investment banking firm reasonably acceptable to Maxim that the business
      combination is fair to the Company’s stockholders from a financial
      perspective.

    

    5. Neither
      the undersigned, any member of the family of the undersigned, nor any Affiliate
      of the undersigned will be entitled to receive and will not accept any
      compensation for services rendered to the Company prior to the consummation
      of
      the Business Combination; provided that the undersigned shall be entitled to
      reimbursement from the Company for his out-of-pocket expenses incurred in
      connection with seeking and consummating a Business Combination.

    

    6. Neither
      the undersigned, any member of the family of the undersigned, or any Affiliate
      of the undersigned will be entitled to receive or accept a finder’s fee or any
      other compensation in the event the undersigned, any member of the family of
      the
      undersigned or any Affiliate of the undersigned originates a Business
      Combination.

    

    7. The
      undersigned will escrow his Insider Shares for the three-year period commencing
      on the Effective Date subject to the terms of a Stock Escrow Agreement which
      the
      Company will enter into with the undersigned and an escrow agent acceptable
      to
      the Company.

    

    8. The
      undersigned’s biographical information furnished to the Company and Maxim and
      attached hereto as Exhibit A is true and accurate in all respects, does not
      omit
      any material information with respect to the undersigned’s background and
      contains all of the information required to be disclosed pursuant to Section
      401
      of Regulation S-K, promulgated under the Securities Act of 1933. The
      undersigned’s Questionnaire previously
      furnished
      to the Company and Maxim
      is true
      and accurate in all respects. The undersigned represents and warrants
      that:

    

    (a) he
      is not
      subject to or a respondent in any legal action for, any injunction,
      cease-and-desist order or order or stipulation to desist or refrain from any
      act
      or practice relating to the offering of securities in any
      jurisdiction;

     

    (b) he
      has
      never been convicted of or pleaded guilty to any crime (i) involving any fraud
      or (ii) relating to any financial transaction or handling of funds of another
      person, or (iii) pertaining to any dealings in any securities and he is not
      currently a defendant in any such criminal proceeding; and

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

      
        
           

          Affinity
            Media
            International Corp.

          Maxim
            Group LLC 

        

         

      

    

    (c) he
      has
      never been suspended or expelled from membership in any securities or
      commodities exchange or association or had a securities or commodities license
      or registration denied, suspended or revoked.

    

    9. The
      undersigned has full right and power, without violating any agreement by which
      he is bound, to enter into this letter agreement and to serve as an advisor
      to
      the Company.

    

    10. The
      undersigned authorizes any employer, financial institution, or consumer credit
      reporting agency to release to Maxim and its legal representatives or agents
      (including any investigative search firm retained by Maxim) any information
      they
      may have about the undersigned’s background and finances (“Information”).
      Neither Maxim nor its agents shall be violating the undersigned’s right of
      privacy in any manner in requesting and obtaining the Information and the
      undersigned hereby releases them from liability for any damage whatsoever in
      that connection.

    

    11. As
      used
      herein, (i) a “Business Combination” shall mean an acquisition by merger,
      capital stock exchange, asset or stock acquisition, reorganization or otherwise,
      of an operating business in
      the
      publishing industry located in the United States;
      (ii)
“Insiders” shall mean all officers, directors and stockholders of the Company
      immediately prior to the Private
      Placement;
      (iii)
“Insider Shares” shall mean all of the shares of Common Stock of the Company
      owned by an Insider prior to the
      Private
      Placement;
      (iv)
“IPO Shares” shall mean the shares of Common Stock issued in the
      Company’s
      IPO, (v)
“Private Placement Shares” shall mean the shares of Common Stock underlying the
      250,000 units issued in the Company’s private placement effected prior to the
      IPO and (vi) “Private Placement” shall mean the Company’s private placement
      effected prior to the
      IPO.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      Affinity
        Media
        International Corp.

      Maxim
        Group LLC 

    

     

    
      12.
        The
        undersigned hereby agrees that (i)
        this
        letter agreement shall replace and supersede the letter agreement between
        the
        undersigned, the Company and Maxim dated September 30, 2005 and (ii)
any
        action, proceeding or claim against the undersigned arising out of or relating
        in any way to this Agreement shall be brought and enforced in the courts
        of the
        State of New York or the United States District Court for the Southern District
        of New York, and irrevocably submits to such jurisdiction, which jurisdiction
        shall be exclusive. The undersigned hereby waives any objection to such
        exclusive jurisdiction and that such courts represent an inconvenience
        forum.

    

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Fred
              Tarter
	 	
              
Fred
              Tarter
	 	 

    

    
       

      
        
          
          

        

        
          4Documentary
                  stamp taxes in the amount of $17,151.40
                  and intangible taxes in the amount of $9,800.80,
                  based on the Loan Amount of $27,250,000.00
                  secured hereby, have been paid upon the recording of this
                  Mortgage

              

      

      

      NOTE
        AND MORTGAGE MODIFICATION AGREEMENT EVIDENCING RENEWAL PROMISSORY NOTE INCLUDING
        FUTURE ADVANCE AND AMENDED AND RESTATED MORTGAGE, SECURITY AGREEMENT AND
        FIXTURE
        FILING

       

       

      LVP
        ST.
        AUGUSTINE OUTLETS LLC, 

       

       

      BORROWER

       

       

      IN
        FAVOR
        OF

       

       

      WACHOVIA
        BANK, NATIONAL ASSOCIATION,

      LENDER

       

       

      DATED:
        AS
        OF MARCH ____, 2006

       

       

      Property
        Address

      2700
        State Road 16

      St.
        Augustine, Florida

       

      Record
        and Return to:

       

      Winston
        & Strawn LLP

      200
        Park
        Avenue

      New
        York,
        New York 10166

      Attention:
        Corey A. Tessler

      St.
        Augustine

      Loan.
        No.
        1000045

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      THIS
        NOTE
        AND MORTGAGE MODIFICATION AGREEMENT EVIDENCING RENEWAL PROMISSORY NOTE INCLUDING
        FUTURE ADVANCE AND AMENDED AND RESTATED MORTGAGE, SECURITY AGREEMENT AND
        FIXTURE
        FILING (this
        “Security
        Instrument”)
        dated
        as of March ____, 2006, by LVP
        ST.
        AUGUSTINE OUTLETS LLC, a Delaware limited liability company (“Borrower”),
        having their chief executive offices c/o The Lightstone Group, 326 Third
        Street,
        Lakewood, New Jersey 08701, to
        WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association
        (“Lender”),
        whose
        address is Commercial Real Estate Services, 8739 Research Drive URP - 4,
        NC
        1075, Charlotte, North Carolina 28262.

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        Lender is the present owner and holder of (i) that certain Promissory Note
        dated
        June 30, 1998 executed in favor of Nationsbank of Tennessee, N.A. (n/k/a
        Bank of
        America, N.A.) in the amount of $32,000,000.00, as amended and reduced by
        that
        certain Assumption and Release Agreement and as assigned to Wells Fargo Bank,
        N.A. (formerly known as Wells Fargo Bank Minnesota, N.A.), as Trustee for
        the
        Registered Holders of GE Capital Commercial Mortgage Corporation, Commercial
        Mortgage Pass-Through Certificates Series 2002-3 and in its capacity as Lead
        Lender on Behalf of the Holders of the Related Companion Loans (the
“Original
        Lender”)
        in the
        original principal amount of TWENTY FOUR MILLION and 00/100 Dollars
        ($24,000,000.00) (the “Existing
        Note
        ").

       

      WHEREAS,
        the Existing Note is secured by that certain Mortgage, Assignment of Leases
        and
        Rents, Security Agreement and Fixture Filing dated June 30, 1998, encumbering
        certain lands in St. John’s County, Florida, recorded in Official Records Book
        1333, Page 498, together with an Assumption and Release Agreement dated
        September 24, 1999 recorded in Official Records Book 1443, Page 1645, as
        assigned to Original Lender pursuant to that certain Assignment of Mortgage
        recorded in Official Records Book 1586, Page 247 (the “Existing
        Mortgage”).

       

      WHEREAS,
        the Existing Note and the Existing Mortgage were previously assigned by Original
        Lender to Lender pursuant to that certain Assignment of Mortgage (the
“Assignment”) recorded immediately prior to this Agreement, and pursuant to the
        Assignment, the Lender is the current owner and holder of the Existing Note
        and
        Existing Mortgage.

       

      WHEREAS,
        the current aggregate principal balance of the Existing Note is $22,349,685.19
        (the "OPB");

       

      WHEREAS,
        Borrower has applied to Lender for a future advance in the amount of
        $4,900,314.81
        pursuant
        to the future advance clauses in the Existing Mortgage, which Lender has
        agreed
        to provide in consideration of the modification and amendment of the Existing
        Note and the modification, amendment and restatement of the Existing Mortgage
        by
        Borrower as set forth herein;

       

      WHEREAS,
        Lender and Borrower desire to replace, modify, amend, spread, consolidate
        and
        restate the Existing Mortgage as set forth herein.

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      NOW
        THEREFORE, in consideration for the mutual covenants and agreements contained
        in
        this Mortgage, the parties covenant and agree as follows:

       

      1. All
        the
        foregoing statements are true and correct.

       

      2. This
        Mortgage contains a waiver of defenses and estoppel language from Borrower
        as to
        the continuing enforceability of the Existing Mortgage.

       

      3. Contemporaneously
        herewith, Borrower has executed and delivered to Lender that certain Renewal
        Promissory Note Including Future Advance which will have a maturity date
        of
        April 11, 2016 (such promissory note, together with any renewals, modifications,
        consolidations and extensions thereof, is hereinafter referred to as the
        "Note")
        dated
        the date hereof in the original principal amount of $27,250,000,
        which
        combines, consolidates, amends and restates the terms of the Existing Note.
        The
        terms and conditions of repayment of the Existing Note shall, from and after
        the
        date of this Mortgage, be governed by the terms and conditions of the Note
        and
        shall be secured by this Mortgage, as modified hereby. The principal sums
        advanced or to be advanced pursuant to the terms of the Note consist of:
        (i) the
        OPB and (ii) $4,900,314.81
        of new
        loan proceeds (hereinafter referred to as the "Future
        Advance").
        The
        Note is given, in part, to renew the Existing Note. As to the renewal of
        the
        Existing Note, the Note is intended to comply with the requirements of 201.09,
        Florida Statutes, and is intended to be exempt from Florida documentary stamp
        taxation thereunder. Accordingly, pursuant to 201.09, Florida Statutes, Florida
        documentary stamp taxes in the amount of $17,151.40
        based
        upon the amount of the Future Advance, have been paid and affixed to this
        Mortgage.

      

      4. Pursuant
        to F.S. 697.04 and the terms of the Existing Mortgage, as modified and restated
        herein, this Mortgage is modified and amended to change the principal sum
        that
        is secured hereby from the OPB to $27,250,000
        Borrower
        covenants that it has not executed or delivered any documentation or made
        any
        promises or covenants to limit the maximum principal amount that may be secured
        by the Existing Mortgage as authorized by F.S. 697.04.

       

      5. The
        Existing Mortgage is modified and amended to modify and restate the terms
        of the
        Existing Mortgage in its entirety as follows:

       

      Lender
        has authorized a loan (hereinafter referred to as the “Loan”)
        to the
        Borrower in the maximum principal sum of TWENTY SEVEN
        MILLION
        TWO HUNDRED FIFTY THOUSAND and NO/100 DOLLARS ($27,250,000)
        (hereinafter referred to as the “Loan
        Amount”),
        together with interest as therein provided, with a maturity date of April
        11,
        2016, which Loan is evidenced by the Note;

       

      WHEREAS,
        in consideration of the Loan, the Borrower has agreed to make payments in
        amounts sufficient to pay and redeem, and provide for the payment and redemption
        of the principal of, premium, if any, and interest on the Note when
        due;

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      WHEREAS,
        Borrower desires by this Security Instrument to provide for, among other
        things,
        the issuance of the Note and for the mortgage by Borrower with, and the creation
        of a security interest in favor of, Lender, as security for the Borrower’s
        obligations to Lender from time to time pursuant to the Note and the other
        Loan
        Documents, but specifically excluding the Guaranty (as hereinafter defined);
        and

       

      WHEREAS,
        Borrower and Lender intend these recitals to be a material part of this Security
        Instrument.

       

      WHEREAS,
        all things necessary to make this Security Instrument the valid and legally
        binding obligation of Borrower in accordance with its terms, for the uses
        and
        purposes herein set forth, have been done and performed. 

       

      NOW
        THEREFORE, to secure the payment of the principal of, prepayment premium
        (if
        any) and interest on the Note and all other obligations, liabilities or sums due
        or to become due under, or advanced in accordance herewith to protect the
        security of, this Security Instrument, the Note or any other Loan Document,
        including, without limitation, interest on said obligations, liabilities
        or sums
        (said principal, premium, interest and other sums being hereinafter referred
        to
        as the “Debt”),
        and
        the performance of all other covenants, obligations and liabilities of the
        Borrower pursuant to the Loan Documents but specifically excluding the Guaranty,
        and any and all other indebtedness now owing or which may hereafter be owing
        by
        Borrower to Lender, now existing or hereafter coming into existence, however
        and
        whenever incurred or evidenced, whether express or implied, direct or indirect,
        absolute or contingent, or due or to become due, and all renewals,
        modifications, consolidations, replacements and extensions thereof, Borrower
        has
        executed and delivered this Security Instrument; and Borrower has irrevocably
        mortgage, warrant and grant a security interest in favor of Lender, forever
        in
        trust WITH POWER OF SALE, all right, title and interest of Borrower in and
        to
        all of the following property, rights, interests and estates, whether now
        owned
        or hereafter acquired, together with the rights, privileges and appurtenances
        thereto belonging:

       

      (a) the
        plot(s), piece(s) or parcel(s) of real property described in Exhibit
        A attached
        hereto and made a part hereof (individually and collectively, hereinafter
        referred to as the “Premises”);

       

      (b) (i)
        all
        buildings, foundations, structures, fixtures, additions, enlargements,
        extensions, modifications, repairs, replacements and improvements of every
        kind
        or nature now or hereafter located on the Premises (hereinafter collectively
        referred to as the “Improvements”);
        and
        (ii) to the extent permitted by law, the name or names, if any, as may now
        or
        hereafter be used for each Improvement, and the goodwill associated
        therewith;

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      (c) all
        easements, servitudes, rights-of-way, strips and gores of land, streets,
        ways,
        alleys, passages, sewer rights, water, water courses, water rights and powers,
        ditches, ditch rights, reservoirs and reservoir rights, air rights and
        development rights, lateral support, drainage, gas, oil and mineral rights,
        tenements, hereditaments and appurtenances of any nature whatsoever, in any
        way
        belonging, relating or pertaining to the Premises or the Improvements and
        the
        reversion and reversions, remainder and remainders, whether existing or
        hereafter acquired, and all land lying in the bed of any street, road or
        avenue,
        opened or proposed, in front of or adjoining the Premises to the center line
        thereof and any and all sidewalks, drives, curbs, passageways, streets, spaces
        and alleys adjacent to or used in connection with the Premises and/or
        Improvements and all the estates, rights, titles, interests, property,
        possession, claim and demand whatsoever, both in law and in equity, of Borrower
        of, in and to the Premises and Improvements and every part and parcel thereof,
        with the appurtenances thereto;

       

      (d) all
        machinery, equipment, fittings, apparatus, appliances, furniture, furnishings,
        tools, fixtures (including, but not limited to, all heating, air conditioning,
        ventilating, waste disposal, sprinkler and fire and theft protection equipment,
        plumbing, lighting, communications and elevator fixtures) and other property
        of
        every kind and nature whatsoever owned by Borrower, or in which Borrower
        has or
        shall have an interest, now or hereafter located upon, or in, and located
        on the
        Premises or the Improvements, or appurtenant thereto, and all building
        equipment, materials and supplies of any nature whatsoever owned by Borrower,
        or
        in which Borrower has or shall have an interest, now or hereafter located
        upon,
        or in the Premises or the Improvements or appurtenant thereto (hereinafter,
        all
        of the foregoing items described in this paragraph (d), along with all
        replacement and additional items installed as contemplated in Section 8.01(e),
        are collectively called the “Equipment”),
        all
        of which, and any replacements, modifications, alterations and additions
        thereto, to the extent permitted by applicable law, shall be deemed to
        constitute fixtures (herein, collectively, the “Fixtures”),
        and
        are part of the real estate and security for the payment of the Debt and
        the
        performance of Borrower’s obligations. To the extent any portion of the
        Equipment is not real property or Fixtures under applicable law, it shall
        be
        deemed to be personal property, and this Security Instrument shall constitute
        a
        security agreement creating a security interest therein in favor of Lender
        under
        the UCC;

       

      (e) all
        awards or payments, including interest thereon, which may hereafter be made
        with
        respect to the Premises, the Improvements, the Fixtures, or the Equipment,
        whether from the exercise of the right of eminent domain (including but not
        limited to any transfer made in lieu of or in anticipation of the exercise
        of
        said right), or for a change of grade, or for any other injury to or decrease
        in
        the value of the Premises, the Improvements or the Equipment or refunds with
        respect to the payment of property taxes and assessments, and all other proceeds
        of the conversion, voluntary or involuntary, of the Premises, Improvements,
        Equipment, Fixtures or any other Property or part thereof into cash or
        liquidated claims;

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      (f) all
        leases, tenancies, licenses and other agreements affecting the use, enjoyment
        or
        occupancy of the Premises, the Improvements, the Fixtures, or the Equipment
        or
        any portion thereof now or hereafter entered into, whether before or after
        the
        filing by or against Borrower of any petition for relief under the Bankruptcy
        Code and all reciprocal easement agreements, license agreements and other
        agreements with Pad Owners (hereinafter collectively referred to as the
“Leases”),
        together with all cash or security deposits, lease termination payments,
        advance
        rentals and payments of similar nature and guarantees or other security held
        by,
        or issued in favor of, Borrower in connection therewith to the extent of
        Borrower’s right or interest therein and all remainders, reversions and other
        rights and estates appurtenant thereto, and all base, fixed, percentage or
        additional rents, and other rents, oil and gas or other mineral royalties,
        and
        bonuses, issues, profits and rebates and refunds or other payments made by
        any
        Governmental Authority from or relating to the Premises, the Improvements,
        the
        Fixtures or the Equipment plus all rents, common area charges and other payments
        now existing or hereafter arising, whether paid or accruing before or after
        the
        filing by or against Borrower of any petition for relief under the Bankruptcy
        Code (herein, collectively, the “Rents”)
        and
        all proceeds from the sale or other disposition of the Leases and the right
        to
        receive and apply the Rents to the payment of the Debt;

       

      (g) all
        proceeds of and any unearned premiums on any insurance policies covering
        the
        Premises, the Improvements, the Fixtures, the Rents or the Equipment, including,
        without limitation, the right to receive and apply the proceeds of any
        insurance, judgments, or settlements made in lieu thereof, for damage to
        the
        Premises, the Improvements, the Fixtures or the Equipment and all refunds
        or
        rebates of Impositions, and interest paid or payable with respect
        thereto;

       

      (h) all
        deposit accounts, securities accounts, funds or other accounts maintained
        or
        deposited with Lender, or its assigns, in connection herewith, including,
        without limitation, the Security Deposit Account (to the extent permitted
        by
        law), the Engineering Escrow Account, the Central Account, the Basic Carrying
        Costs Sub-Account, the Basic Carrying Costs Escrow Account, the Debt Service
        Payment Sub-Account, the Recurring Replacement Reserve Sub-Account, the
        Recurring Replacement Reserve Escrow Account, the Reletting Reserve Sub-Account,
        the Reletting Reserve Escrow Account, the Operation and Maintenance Expense
        Sub-Account, the Operation and Maintenance Expense Escrow Account, the
        Curtailment Reserve Escrow Account and the Curtailment Reserve Sub-Account,
        the
        Holdback Reserve Escrow Account, the Holdback Reserve Sub-Account, the Debt
        Service Reserve Escrow Account, the Debt Service Reserve Sub-Account, the
        Yield
        Maintenance Reserve Escrow Account, the Yield Maintenance Reserve Sub-Account,
        and all monies and investments deposited or to be deposited in such
        accounts;

       

      (i) all
        accounts receivable, contract rights, franchises, interests, estate or other
        claims, both at law and in equity, now existing or hereafter arising, and
        relating to the Premises, the Improvements, the Fixtures or the Equipment,
        not
        included in Rents;

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      (j) all
        now
        existing or hereafter arising claims against any Person with respect to any
        damage to the Premises, the Improvements, the Fixtures or the Equipment,
        including, without limitation, damage arising from any defect in or with
        respect
        to the design or construction of the Improvements, the Fixtures or the Equipment
        and any damage resulting therefrom;

       

      (k) all
        deposits or other security or advance payments, including rental payments
        now or
        hereafter made by or on behalf of Borrower to others, with respect to (i)
        insurance policies, (ii) utility services, (iii) cleaning, maintenance, repair
        or similar services, (iv) refuse removal or sewer service, (v) parking or
        similar services or rights and (vi) rental of Equipment, if any, relating
        to or
        otherwise used in the operation of the Premises, the Improvements, the Fixtures
        or the Equipment;

       

      (l) all
        intangible property now or hereafter relating to the Premises, the Improvements,
        the Fixtures or the Equipment or its operation, including, without limitation,
        software, letter of credit rights, trade names, trademarks (including, without
        limitation, any licenses of or agreements to license trade names or trademarks
        now or hereafter entered into by Borrower), logos, building names and
        goodwill;

       

      (m) all
        now
        existing or hereafter arising advertising material, guaranties, warranties,
        building permits, other permits, licenses, plans and specifications, shop
        and
        working drawings, soil tests, appraisals and other documents, materials and/or
        personal property of any kind now or hereafter existing in or relating to
        the
        Premises, the Improvements, the Fixtures, and the Equipment;

       

      (n) all
        now
        existing or hereafter arising drawings, designs, plans and specifications
        prepared by architects, engineers, interior designers, landscape designers
        and
        any other consultants or professionals for the design, development,
        construction, repair and/or improvement of the Property, as amended from
        time to
        time;

       

      (o) the
        right, in the name of and on behalf of Borrower, to appear in and defend
        any now
        existing or hereafter arising action or proceeding brought with respect to
        the
        Premises, the Improvements, the Fixtures or the Equipment as set forth herein
        and to commence any action or proceeding to protect the interest of Lender
        in
        the Premises, the Improvements, the Fixtures or the Equipment as set forth
        herein;

       

      (p) all
        agreements, grants of easements and/or rights-of-way, reciprocal easement
        agreements, permits, declarations of covenants, conditions and restrictions,
        disposition and development agreements, planned unit development agreements,
        management or parking agreements, party wall agreements or other instruments
        affecting the Property and all proceeds or income received with respect thereto;
        and

       

      (q) all
        proceeds, products, substitutions and accessions (including claims and demands
        therefor) of each of the foregoing.

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      All
        of
        the foregoing items (a) through (q), together with all of the right, title
        and
        interest of Borrower therein, are collectively referred to as the “Property”.

       

      PROVIDED,
        ALWAYS, and these presents are upon this express condition, if Borrower shall
        well and truly pay and discharge the Debt and perform and observe the terms,
        covenants and conditions set forth in the Loan Documents, then these presents
        and the estate hereby granted shall cease and be void.

       

      AND
        Borrower covenants with and warrants to Lender that:

       

      ARTICLE
        I: DEFINITIONS

       

      Section
        1.01. Certain
        Definitions. 

       

      For
        all
        purposes of this Security Instrument, except as otherwise expressly provided
        or
        unless the context clearly indicates a contrary intent:

       

      (i) the
        capitalized terms defined in this Section have the meanings assigned to them
        in
        this Section, and include the plural as well as the singular;

       

      (ii) all
        accounting terms not otherwise defined herein have the meanings assigned
        to them
        in accordance with GAAP; and

       

      (iii) the
        words
“herein”, “hereof”, and “hereunder” and other words of similar import refer to
        this Security Instrument as a whole and not to any particular Section or
        other
        subdivision.

       

      “Adjusted
        Net Cash Flow”
shall
        mean on any determination date, the Pro-Forma Net Operating Income less (a)
        the
        Recurring Replacement Monthly Installment multiplied by twelve (12), (b)
        the
        Reletting Reserve Monthly Installment multiplied by twelve (12), and (c)
        Net
        Capital Expenditures to be incurred (as estimated by Lender, in its reasonable
        discretion) for the subsequent twelve (12) month period. The Adjusted Net
        Cash
        Flow shall be calculated by Lender in accordance with the terms of this Security
        Instrument.

       

      “Affiliate”
of
        any
        specified Person shall mean any other Person directly or indirectly Controlling
        or Controlled by or under direct or indirect common Control with such specified
        Person.

       

      “Annual
        Budget”
shall
        mean an annual budget submitted by Borrower to Lender in accordance with
        the
        terms of Section 2.09 hereof.

       

      “Appraisal”
shall
        mean the appraisal of the Property and all supplemental reports or updates
        thereto previously delivered to Lender in connection with the Loan.

       

      “Appraiser”
shall
        mean the Person who prepared the Appraisal.

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      “Approved
        Annual Budget”
shall
        mean each Annual Budget approved by Lender in accordance with terms
        hereof.

       

      “Approved
        Manager Standard”
shall
        mean the standard of business operations, practices and procedures customarily
        employed by entities which possess the Minimum Manager Credentials.

       

      “Architect”
shall
        have the meaning set forth in Section 3.04(b)(i) hereof.

       

      “Assignment”
shall
        mean the Assignment of Leases and Rents and Security Deposits of even date
        herewith relating to the Property given by Borrower to Lender.

       

      “Bank”
shall
        mean the bank, trust company, savings and loan association or savings bank
        designated by Lender, in its sole and absolute discretion, in which the Central
        Account shall be located.

       

      “Bankruptcy
        Code”
shall
        mean 11 U.S.C. §101 et seq., as amended from time to time.

       

      “Basic
        Carrying Costs”
shall
        mean the sum of the following costs associated with the Property: (a) Real
        Estate Taxes and (b) insurance premiums.

       

      “Basic
        Carrying Costs Escrow Account”
shall
        mean the Escrow Account maintained pursuant to Section 5.06 hereof.

       

      “Basic
        Carrying Costs Monthly Installment”
shall
        mean Lender’s reasonable estimate of one-twelfth (1/12th) of the annual amount
        for Basic Carrying Costs. “Basic Carrying Costs Monthly Installment” shall also
        include, if required by Lender, a sum of money which, together with such
        monthly
        installments, will be sufficient to make the payment of each such Basic Carrying
        Cost at least thirty (30) days prior to the date initially due. Should such
        Basic Carrying Costs not be ascertainable at the time any monthly deposit
        is
        required to be made, the Basic Carrying Costs Monthly Installment shall be
        determined by Lender in its reasonable discretion on the basis of the aggregate
        Basic Carrying Costs for the prior Fiscal Year or month or the prior payment
        period for such cost. As soon as the Basic Carrying Costs are fixed for the
        then
        current Fiscal Year, month or period, the next ensuing Basic Carrying Costs
        Monthly Installment shall be adjusted to reflect any deficiency or surplus
        in
        prior monthly payments. If at any time during the term of the Loan Lender
        determines that there will be insufficient funds in the Basic Carrying Costs
        Escrow Account to make payments when they become due and payable, Lender
        shall
        have the right to adjust the Basic Carrying Costs Monthly Installment such
        that
        there will be sufficient funds to make such payments.

       

      “Basic
        Carrying Costs Sub-Account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        into which the Basic Carrying Costs Monthly Installments shall be
        deposited.

       

      “Borrower”
shall
        mean Borrower named herein and any successor to the obligations of
        Borrower.

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      “Borrower
        Account”
shall
        mean an Eligible Account maintained in the name of Borrower.

       

      “Business
        Day”
shall
        mean any day other than (a) a Saturday or Sunday, or (b) a day on which banking
        and savings and loan institutions in the State of New York or the State of
        North
        Carolina are authorized or obligated by law or executive order to be closed,
        or
        at any time during which the Loan is an asset of a Securitization, the cities,
        states and/or commonwealths used in the comparable definition of “Business Day”
in the Securitization documents.

       

      “Capital
        Expenditures”
shall
        mean for any period, the amount expended for items capitalized under GAAP
        including expenditures for building improvements or major repairs, leasing
        commissions and tenant improvements.

       

      “Cash
        Expenses”
shall
        mean for any period, the operating expenses for the Property as set forth
        in an
        Approved Annual Budget to the extent that such expenses are actually incurred
        by
        Borrower minus payments into the Basic Carrying Costs Sub-Account, the Debt
        Service Payment Sub-Account, the Reletting Reserve Sub-Account and the Recurring
        Replacement Reserve Sub-Account.

       

      “Central
        Account”
shall
        mean an Eligible Account, maintained at the Bank, in the name of Lender or
        its
        successors or assigns (as secured party) as may be designated by
        Lender.

       

      “Closing
        Date”
shall
        mean the date of the Note.

       

      “Code”
shall
        mean the Internal Revenue Code of 1986, as amended and as it may be further
        amended from time to time, any successor statutes thereto, and applicable
        U.S.
        Department of Treasury regulations issued pursuant thereto.

       

      “Condemnation
        Proceeds”
shall
        mean all of the proceeds in respect of any Taking or purchase in lieu
        thereof.

       

      “Contractual
        Obligation”
shall
        mean, as to any Person, any provision of any security issued by such Person
        or
        of any agreement, instrument or undertaking to which such Person is a party
        or
        by which it or any of the property owned by it is bound.

       

      “Control”
means,
        when used with respect to any specific Person, the possession, directly or
        indirectly, of the power to direct or cause the direction of the management
        and
        policies of such 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.” 

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      “CPI”
shall
        mean “The Consumer Price Index (New Series) (Base Period 1982-84=100) (all items
        for all urban consumers)” issued by the Bureau of Labor Statistics of the United
        States Department of Labor (the “Bureau”).
        If
        the CPI ceases to use the 1982-84 average equaling 100 as the basis of
        calculation, or if a change is made in the term, components or number of
        items
        contained in said index, or if the index is altered, modified, converted
        or
        revised in any other way, then the index shall be adjusted to the figure
        that
        would have been arrived at had the change in the manner of computing the
        index
        in effect at the date of this Security Instrument not been altered. If at
        any
        time during the term of this Security Instrument the CPI shall no longer
        be
        published by the Bureau, then any comparable index issued by the Bureau or
        similar agency of the United States issuing similar indices shall be used
        in
        lieu of the CPI.

       

      “Current
        Month”
shall
        mean the period from the eleventh (11th)
        day of
        each month through and including the tenth (10th)
        day of
        the following month.

       

      "Curtailment
        Reserve Escrow Account"
        shall
        mean the Escrow Account maintained pursuant to Section 5.11 hereof into which
        sums shall be deposited during an O&M Operative Period.

       

      "Curtailment
        Reserve Sub-Account"
        shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof.

       

      “Debt”
shall
        have the meaning set forth in the Recitals hereto.

       

      “Debt
        Service Coverage”
shall
        mean the quotient obtained by dividing Adjusted Net Cash Flow for the specified
        period by the sum of the aggregate payments of interest and principal due
        for
        such specified period under the Note (determined as of the date the calculation
        of Debt Service Coverage is required or requested hereunder). 

       

      “Debt
        Service Payment Sub-Account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof into which the Required Debt Service Payment shall be
        deposited.

       

      “Debt
        Service Reserve Escrow Account”
shall
        mean the Escrow Account maintained pursuant to Section 5.16 hereof relating
        to
        the payment of debt service on the Loan.

       

      “Debt
        Service Reserve Sub-Account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof into which the Initial Debt Service Reserve Deposit shall be
        deposited.

       

      “Default”
shall
        mean any Event of Default or event which would constitute an Event of Default
        if
        all requirements in connection therewith for the giving of notice, the lapse
        of
        time, and the happening of any further condition, event or act, had been
        satisfied.

       

      “Default
        Rate”
shall
        mean the lesser of (a) the highest rate allowable at law and (b) five percent
        (5%) above the interest rate set forth in the Note.

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      “Default
        Rate Interest”
shall
        mean, to the extent the Default Rate becomes applicable, interest in excess
        of
        the interest which would have accrued on (a) the Principal Amount and (b)
        any
        accrued but unpaid interest, if the Default Rate was not
        applicable.

       

      “Development
        Laws”
shall
        mean all applicable subdivision, zoning, environmental protection, wetlands
        protection, or land use laws or ordinances, and any and all applicable rules
        and
        regulations of any Governmental Authority promulgated thereunder or related
        thereto.

       

      “Eligible
        Account”
shall
        mean a segregated account which is either (a) an account or accounts maintained
        with a federal or state chartered depository institution or trust company
        the
        long term unsecured debt obligations of which are rated by each of the Rating
        Agencies (or, if not rated by Fitch, Inc. (“Fitch”),
        otherwise acceptable to Fitch, as confirmed in writing that such account
        would
        not, in and of itself, result in a downgrade, qualification or withdrawal
        of the
        then current ratings assigned to any certificates issued in connection with
        a
        Securitization) in its second highest rating category at all times (or, in
        the
        case of the Basic Carrying Costs Escrow Account, the long term unsecured
        debt
        obligations of which are rated at least “AA” (or its equivalent)) by each of the
        Rating Agencies (or, if not rated by Fitch, otherwise acceptable to Fitch,
        as
        confirmed in writing that such account would not, in and of itself, result
        in a
        downgrade, qualification or withdrawal of the then current ratings assigned
        to
        any certificates issued in connection with a Securitization) or, if the funds
        in
        such account are to be held in such account for less than thirty (30) days,
        the
        short term obligations of which are rated by each of the Rating Agencies
        (or, if
        not rated by Fitch, otherwise acceptable to Fitch, as confirmed in writing
        that
        such account would not, in and of itself, result in a downgrade, qualification
        or withdrawal of the then current ratings assigned to any certificates issued
        in
        connection with a Securitization) in its second highest rating category at
        all
        times or (b) a segregated trust account or accounts maintained with a federal
        or
        state chartered depository institution or trust company acting in its fiduciary
        capacity which, in the case of a state chartered depository institution is
        subject to regulations substantially similar to 12 C.F.R. § 9.10(b), having in
        either case a combined capital and surplus of at least $100,000,000 and subject
        to supervision or examination by federal and state authority, or otherwise
        acceptable (as evidenced by a written confirmation from each Rating Agency
        that
        such account would not, in and of itself, cause a downgrade, qualification
        or
        withdrawal of the then current ratings assigned to any certificates issued
        in
        connection with a Securitization) to each Rating Agency, which may be an
        account
        maintained by Lender or its agents. Eligible Accounts may bear interest.
        The
        title of each Eligible Account shall indicate that the funds held therein
        are
        held in trust for the uses and purposes set forth herein.

       

      “Engineer”
shall
        have the meaning set forth in Section 3.04(b)(i) hereof.

       

      “Engineering
        Escrow Account”
shall
        mean an Escrow Account established and maintained pursuant to Section 5.12
        hereof relating to payments for any Required Engineering Work. 

       

      “Engineering
        Report”
shall
        mean the engineering report for the Property and any supplements or updates
        thereto, previously delivered to Lender in connection with the
        Loan.

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

      “Environmental
        Problem”
shall
        mean any of the following:

       

      (a) the
        presence of any Hazardous Material on, in, under, or above all or any portion
        of
        the Property;

       

      (b) the
        release or threatened release of any Hazardous Material from or onto the
        Property;

       

      (c) the
        violation or threatened violation of any Environmental Statute with respect
        to
        the Property; or

       

      (d) the
        failure to obtain or to abide by the terms or conditions of any permit or
        approval required under any Environmental Statute with respect to the
        Property.

       

      A
        condition described above shall be an Environmental Problem regardless of
        whether or not any Governmental Authority has taken any action in connection
        with the condition and regardless of whether that condition was in existence
        on
        or before the date hereof.

       

      “Environmental
        Report”
shall
        mean the environmental audit report for the Property and any supplements
        or
        updates thereto, previously delivered to Lender in connection with the
        Loan.

       

      “Environmental
        Statute”
shall
        mean any federal, state or local statute, ordinance, rule or regulation,
        any
        judicial or administrative order (whether or not on consent) or judgment
        applicable to Borrower or the Property including, without limitation, any
        judgment or settlement based on common law theories, and any provisions or
        condition of any permit, license or other authorization binding on Borrower
        relating to (a) the protection of the environment or the health of persons
        (including employees) from actual or potential exposure (or effects of exposure)
        to any actual or potential release, discharge, disposal or emission (whether
        past or present) of any Hazardous Materials or (b) the manufacture, processing,
        distribution, use, treatment, storage, disposal, transport or handling of
        any
        Hazardous Materials, including, but not limited to, the Comprehensive
        Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”),
        as
        amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C.
        §9601 et seq.,
        the
        Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery
        Act of 1976, as amended by the Solid and Hazardous Waste Amendments of 1984,
        42
        U.S.C. §6901 et seq.,
        the
        Federal Water Pollution Control Act, as amended by the Clean Water Act of
        1977,
        33 U.S.C. §1251 et seq.,
        the
        Toxic Substances Control Act of 1976, 15 U.S.C. §2601 et seq.,
        the
        Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §1101
et seq.,
        the
        Clean Air Act of 1966, as amended, 42 U.S.C. §7401 et seq.,
        the
        National Environmental Policy Act of 1975, 42 U.S.C. §4321, the Rivers and
        Harbors Act of 1899, 33 U.S.C. §401 et seq.,
        the
        Endangered Species Act of 1973, as amended, 16 U.S.C. §1531 et seq.,
        the
        Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §651
et seq.,
        and the
        Safe Drinking Water Act of 1974, as amended, 42 U.S.C. §300(f) et seq.,
        and all
        rules, regulations and guidance documents promulgated or published
        thereunder.

       

      “Equipment”
shall
        have the meaning set forth in granting clause (d) of this Security
        Instrument.

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      “ERISA”
shall
        mean the Employee Retirement Income Security Act of 1974, as amended from
        time
        to time, and the regulations promulgated thereunder. Section references to
        ERISA
        are to ERISA, as in effect at the date of this Security Instrument and, as
        of
        the relevant date, any subsequent provisions of ERISA, amendatory thereof,
        supplemental thereto or substituted therefor.

       

      “ERISA
        Affiliate”
shall
        mean any corporation or trade or business that is a member of any group of
        organizations (a) described in Section 414(b) or (c) of the Code of which
        Borrower or Guarantor is a member and (b) solely for purposes of potential
        liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the
        Code
        and the lien created under Section 302(f) of ERISA and Section 412(n) of
        the
        Code, described in Section 414(m) or (o) of the Code of which Borrower or
        Guarantor is a member.

       

      “Escrow
        Account”
shall
        mean each of the Engineering Escrow Account, the Basic Carrying Costs Escrow
        Account, the Recurring Replacement Reserve Escrow Account, the Reletting
        Reserve
        Escrow Account, the Holdback Reserve Escrow Account, the Operation and
        Maintenance Expense Escrow Account, the Debt Service Reserve Escrow Account,
        the
        Yield Maintenance Reserve Escrow Account and the Curtailment Reserve Escrow
        Account, each of which shall be an Eligible Account or book entry sub-account
        of
        an Eligible Account.

       

      “Event
        of Default”
shall
        have the meaning set forth in Section 13.01 hereof.

       

      “Extraordinary
        Expense”
shall
        mean an extraordinary operating expense or capital expense not set forth
        in the
        Approved Annual Budget or allotted for in the Recurring Replacement Reserve
        Sub-Account or the Reletting Reserve Sub-Account.

       

      “Fiscal
        Year”
shall
        mean the twelve (12) month period commencing on January 1 and ending on December
        31 during each year of the term of this Security Instrument, or such other
        fiscal year of Borrower as Borrower may select from time to time with the
        prior
        written consent of Lender.

       

      “Fixtures”
shall
        have the meaning set forth in granting clause (d) of this Security
        Instrument.

       

      “Force
        Majeure”
shall
        mean strikes, lockouts, labor disputes, acts of God, governmental restrictions,
        regulations or controls, enemy or hostile governmental actions, terrorist
        acts,
        civil commotion, insurrection, revolution, sabotage or fire or other casualty
        or
        other events beyond the reasonable control of Borrower and/or its Affiliates,
        but Borrower’s and/or its Affiliates’ lack of funds in and of itself shall not
        be deemed a cause beyond the control of Borrower and/or its
        Affiliates.

       

      “GAAP”
shall
        mean generally accepted accounting principles in the United States of America,
        as of the date of the applicable financial report, consistently
        applied.

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      “General
        Partner”
shall
        mean, if Borrower is a partnership, each general partner of Borrower and,
        if
        Borrower is a limited liability company, each managing member of Borrower
        and in
        each case, if applicable, each general partner or member of such general
        partner
        or managing member. 

       

      “Governmental
        Authority”
shall
        mean, with respect to any Person, any federal or State government or other
        political subdivision thereof and any entity, including any regulatory or
        administrative authority or court, exercising executive, legislative, judicial,
        regulatory or administrative or quasi-administrative functions of or pertaining
        to government, and any arbitration board or tribunal, in each case having
        jurisdiction over such applicable Person or such Person’s property and any stock
        exchange on which shares of capital stock of such Person are listed or admitted
        for trading.

       

      “Guarantor”
shall
        mean any Person guaranteeing, in whole or in part, the obligations of Borrower
        under the Loan Documents.

       

      “Guaranty”
shall
        mean that certain Guaranty executed and delivered by Lightstone Holdings,
        LLC,
        dated as of the date hereof.

       

      “Hazardous
        Material”
shall
        mean any flammable, explosive or radioactive materials, hazardous materials
        or
        wastes, hazardous or toxic substances, pollutants, asbestos or any material
        containing asbestos, molds, spores and fungus which may pose a risk to human
        health or the environment or any other substance or material as defined in
        or
        regulated by any Environmental Statutes.

       

      “Holdback
        Release Amount”
shall
        mean, at any time of any request, the positive different between the Supported
        Loan Amount and $24,250,000.00 (plus the amounts which may have been previously
        released from the Holdback Reserve Escrow Account).

       

      "Holdback
        Reserve Escrow Account"
        shall
        mean the Escrow Account maintained pursuant to Section 5.15 hereof.

       

      "Holdback
        Reserve Sub-Account"
        shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof in which the Initial Holdback Reserve Deposit shall be
        maintained.

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      “Impositions”
shall
        mean all taxes (including, without limitation, all real estate, ad valorem,
        sales (including those imposed on lease rentals), use, single business, gross
        receipts, value added, intangible, transaction, privilege or license or similar
        taxes), assessments (including, without limitation, all assessments for public
        improvements or benefits, whether or not commenced or completed prior to
        the
        date hereof and whether or not commenced or completed within the term of
        this
        Security Instrument), ground rents, water, sewer or other rents and charges,
        excises, levies, fees (including, without limitation, license, permit,
        inspection, authorization and similar fees), and all other governmental charges,
        in each case whether general or special, ordinary or extraordinary, or foreseen
        or unforeseen, of every character in respect of the Property and/or any Rent
        (including all interest and penalties thereon), which at any time prior to,
        during or in respect of the term hereof may be assessed or imposed on or
        in
        respect of or be a lien upon (a) Borrower (including, without limitation,
        all
        franchise, single business or other taxes imposed on Borrower for the privilege
        of doing business in the jurisdiction in which the Property or any other
        collateral delivered or pledged to Lender in connection with the Loan is
        located) or Lender, (b) the Property or any part thereof or any Rents therefrom
        or any estate, right, title or interest therein, or (c) any occupancy,
        operation, use or possession of, or sales from, or activity conducted on,
        or in
        connection with the Property, or any part thereof, or the leasing or use
        of the
        Property, or any part thereof, or the acquisition or financing of the
        acquisition of the Property, or any part thereof, by Borrower.

       

      “Improvements”
shall
        have the meaning set forth in granting clause (b) of this Security
        Instrument.

       

      “Indemnified
        Parties”
shall
        have the meaning set forth in Section 12.01 hereof.

       

      “Independent”
shall
        mean, when used with respect to any Person, a Person who (a) is in fact
        independent, (b) does not have any direct financial interest or any material
        indirect financial interest in Borrower, or in any Affiliate of Borrower
        or any
        constituent partner, shareholder, member or beneficiary of Borrower, (c)
        is not
        connected with Borrower or any Affiliate of Borrower or any constituent partner,
        shareholder, member or beneficiary of Borrower as an officer, employee,
        promoter, underwriter, trustee, partner, director or person performing similar
        functions and (d) is not a member of the immediate family of a Person defined
        in
        (b) or (c) above.

       

      "Initial
        Debt Service Reserve Deposit"
        shall
        equal the amount set forth on Exhibit B attached hereto and made a part
        hereof.

       

      “Initial
        Engineering Deposit”
shall
        equal the amount set forth on Exhibit B attached hereto and made a part
        hereof.

       

      "Initial
        Holdback Reserve Deposit"
        shall
        equal the amount set forth on Exhibit B attached hereto and made a part
        hereof.

       

      “Initial
        Outstanding TILC Reserve Deposit”
shall
        equal the amount set forth on Exhibit B attached hereto and made a part hereof.
        

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

       

      “Initial
        Reletting Reserve Deposit”
shall
        equal the amount set forth on Exhibit B attached hereto and made a part
        hereof.

       

      “Initial
        Recurring Reserve Deposit”
shall
        equal the amount required to be deposited by Borrower into the Recurring
        Replacement Reserve Escrow Account on the Closing Date as set forth on Exhibit
        B.

       

      "Initial
        Yield Maintenance Reserve Deposit"
        shall
        equal the amount set forth on Exhibit B attached hereto and made a part
        hereof.

       

      “Insolvency
        Opinion”
shall
        have the meaning set forth in Section 2.02(g)(xix) hereof.

       

      “Institutional
        Lender”
shall
        mean any of the following Persons: (a) any bank, savings and loan association,
        savings institution, trust company or national banking association, acting
        for
        its own account or in a fiduciary capacity, (b) any charitable foundation,
        (c)
        any insurance company or pension and/or annuity company, (d) any fraternal
        benefit society, (e) any pension, retirement or profit sharing trust or fund
        within the meaning of Title I of ERISA or for which any bank, trust company,
        national banking association or investment adviser registered under the
        Investment Advisers Act of 1940, as amended, is acting as trustee or agent,
        (f)
        any investment company or business development company, as defined in the
        Investment Company Act of 1940, as amended, (g) any small business investment
        company licensed under the Small Business Investment Act of 1958, as amended,
        (h) any broker or dealer registered under the Securities Exchange Act of
        1934,
        as amended, or any investment adviser registered under the Investment Adviser
        Act of 1940, as amended, (i) any government, any public employees’ pension or
        retirement system, or any other government agency supervising the investment
        of
        public funds, or (j) any other entity all of the equity owners of which are
        Institutional Lenders; provided that each of said Persons shall have net
        assets
        in excess of $1,000,000,000 and a net worth in excess of $500,000,000, be
        in the
        business of making commercial mortgage loans, secured by properties of like
        type, size and value as the Property and have a long term credit rating which
        is
        not less than “BBB-” (or its equivalent) from the Rating Agency.

       

      “Insurance
        Proceeds”
shall
        mean all of the proceeds received under the insurance policies required to
        be
        maintained by Borrower pursuant to Article III hereof. 

       

      “Insurance
        Requirements”
shall
        mean all terms of any insurance policy required by this Security Instrument,
        all
        requirements of the issuer of any such policy, and all regulations and then
        current standards applicable to or affecting the Property or any use or
        condition thereof, which may, at any time, be recommended by the Board of
        Fire
        Underwriters, if any, having jurisdiction over the Property, or such other
        Person exercising similar functions.

       

      “Interest
        Rate”
shall
        have the meaning set forth in the Note.

       

      “Late
        Charge”
shall
        have the meaning, subject to the provisions of Section 21.02(g) hereof, set
        forth in Section 13.09 hereof.

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

       

      “Leases”
shall
        have the meaning set forth in granting clause (f) of this Security
        Instrument.

       

      “Legal
        Requirement”
shall
        mean as to any Person, the certificate of incorporation, by-laws, certificate
        of
        limited partnership, agreement of limited partnership or other organization
        or
        governing documents of such Person, and any law, statute, order, code,
        ordinance, judgment, decree, injunction, treaty, rule or regulation (including,
        without limitation, Environmental Statutes, Development Laws and Use
        Requirements) or determination of an arbitrator or a court or other Governmental
        Authority and all covenants, agreements, restrictions and encumbrances contained
        in any instruments, in each case applicable to or binding upon such Person
        or
        any of its property or to which such Person or any of its property is
        subject.

       

      “Lender”
shall
        mean the Lender named herein and its successors or assigns.

       

      “Loan”
shall
        have the meaning set forth in the Recitals hereto.

       

      “Loan
        Amount”
shall
        have the meaning set forth in the Recitals hereto.

       

      “Loan
        Documents”
shall
        mean this Security Instrument, the Note, the Assignment, and any and all
        other
        agreements, instruments, certificates or documents executed and delivered
        by
        Borrower or any Affiliate of Borrower in connection with the Loan.

       

      “Loan
        Year”
shall
        mean each 365 day period (or 366 day period if the month of February in a
        leap
        year is included) commencing on the first day of the month following the
        Closing
        Date (provided, however, that the first Loan Year shall also include the
        period
        from the Closing Date to the end of the month in which the Closing Date occurs).
        

       

      “Loss
        Proceeds”
shall
        mean, collectively, all Insurance Proceeds and all Condemnation Proceeds.
        

       

      “Major
        Space Lease”
shall
        mean any Space Lease of a tenant or Affiliate of such tenant where such tenant
        or such Affiliate leases, in the aggregate, in excess of 6,000 square feet.
        

       

      “Management
        Agreement”
shall
        have the meaning set forth in Section 7.02 hereof.

       

      “Manager”
shall
        mean Borrower and any other Person, other than Borrower, which manages the
        Property on behalf of Borrower.

       

      “Manager
        Certification”
shall
        have the meaning set forth in Section 2.09 hereof.

       

      “Material
        Adverse Effect”
shall
        mean any event or condition that has a material adverse effect on (a) the
        Property, (b) the business, profits, management, operations or condition
        (financial or otherwise) of Borrower, (c) the enforceability, validity,
        perfection or priority of the lien or security interest of any Loan Document
        or
        (d) the ability of Borrower to perform any material obligations under any
        Loan
        Document.

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      “Maturity”,
        when
        used with respect to the Note, shall mean the Maturity Date set forth in
        the
        Note, as same may be extended in accordance with the Note, or such other
        date
        pursuant to the Note on which the final payment of principal, and premium,
        if
        any, on the Note becomes due and payable as therein or herein provided, whether
        at Stated Maturity or by declaration of acceleration, or otherwise.

       

      “Maturity
        Date”
shall
        mean the Maturity Date set forth in the Note.

       

      “Minimum
        Manager Credentials”
shall
        mean (i) the employment of a senior executive who has the responsibility
        for
        oversight of the Property and has at least seven (7) years’ experience in the
        management of outlet shopping centers and (ii) the management of not less
        than
        five (5) outlet shopping center properties having an aggregate leasable square
        footage of not less than the lesser of (a) one million leasable square feet
        and
        (b) five (5) times the leasable square feet of the Property.

       

      “Multiemployer
        Plan”
shall
        mean a multiemployer plan defined as such in Section 3(37) of ERISA to which
        contributions have been, or were required to have been, made by Borrower,
        Guarantor or any ERISA Affiliate and which is covered by Title IV of
        ERISA.

       

      “Net
        Capital Expenditures”
shall
        mean for any period the amount by which Capital Expenditures during such
        period
        exceeds reimbursements for such items during such period from any fund
        established pursuant to the Loan Documents.

       

      “Net
        Operating Income”
shall
        mean in each Fiscal Year or portion thereof during the term hereof, Operating
        Income less Operating Expenses.

       

      “Net
        Proceeds”
shall
        mean the excess of (a)(i) the purchase price (at foreclosure or otherwise)
        actually received by Lender with respect to the Property as a result of the
        exercise by Lender of its rights, powers, privileges and other remedies after
        the occurrence of an Event of Default, or (ii) in the event that Lender (or
        Lender’s nominee) is the purchaser at foreclosure by credit bid, then the amount
        of such credit bid, in either case, over (b) all costs and expenses, including,
        without limitation, all attorneys’ fees and disbursements and any brokerage
        fees, if applicable, incurred by Lender in connection with the exercise of
        such
        remedies, including the sale of such Property after a foreclosure against
        the
        Property.

       

      “Note”
shall
        have the meaning set forth in the Recitals hereto.

       

      "O&M
        Operative Period"
        shall
        mean the period of time commencing upon the determination by Lender that
        the
        Debt Service Coverage (tested quarterly except during the continuance of
        an
        O&M Operative Period, in which event Debt Service Coverage shall be tested
        monthly and shall be calculated based upon information contained in the reports
        furnished to Lender pursuant to Section 2.09 hereof) is less than 1.05:1.0
        for
        the preceding fiscal quarter and terminating, in each case, on the Payment
        Date
        next succeeding the date upon which Lender has determined that the Debt Service
        Coverage has been 1.05:1 or greater for the immediately preceding two fiscal
        quarters.

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      “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 accessible through the internet website
www.treas.gov/ofac/t11sdn.pdf.

       

      “Officer’s
        Certificate”
shall
        mean a certificate delivered to Lender by Borrower which is signed on behalf
        of
        Borrower by an authorized representative of Borrower which states that the
        items
        set forth in such certificate are true, accurate and complete in all
        respects.

       

      “Operating
        Expenses”
shall
        mean, in each Fiscal Year or portion thereof during the term hereof, all
        expenses directly attributable to the operation, repair and/or maintenance
        of
        the Property including, without limitation, (a) Impositions, (b) insurance
        premiums, (c) management fees, whether or not actually paid, equal to the
        greater of the actual management fees or expenses and four percent (4%) of
        annual “base” or “fixed” Rent due under the Leases and (d) costs attributable to
        the operation, repair and maintenance of the systems for heating, ventilating
        and air conditioning the Improvements and actually paid for by Borrower.
        Operating Expenses shall not include interest, principal and premium, if
        any,
        due under the Note or otherwise in connection with the Debt, income taxes,
        Capital Expenditures, any non-cash charge or expense such as depreciation,
        amortization or any item of expense otherwise includable in Operating Expenses
        which is paid directly by any tenant except real estate taxes paid directly
        to
        any taxing authority by any tenant or contributions by Borrower to any reserve
        funds required under the Loan Documents.

       

      “Operating
        Income”
shall
        mean, in each Fiscal Year or portion thereof during the term hereof, all
        revenue
        derived by Borrower arising from the Property including, without limitation,
        rental revenues (whether denominated as basic rent, additional rent, escalation
        payments, electrical payments or otherwise) and other fees and charges payable
        pursuant to Leases or otherwise in connection with the Property, and the
        proceeds of business interruption, rent or other similar insurance. Operating
        Income shall not include (a) Insurance Proceeds (other than proceeds of rent,
        business interruption or other similar insurance allocable to the applicable
        period) and Condemnation Proceeds (other than Condemnation Proceeds arising
        from
        a temporary taking or the use and occupancy of all or part of the applicable
        Property allocable to the applicable period), or interest accrued on such
        Condemnation Proceeds, (b) proceeds of any financing, (c) proceeds of any
        sale,
        exchange or transfer of the Property or any part thereof or interest therein,
        (d) capital contributions or loans to Borrower or an Affiliate of Borrower,
        (e)
        any item of income otherwise includable in Operating Income but paid directly
        by
        any tenant to a Person other than Borrower except for real estate taxes paid
        directly to any taxing authority by any tenant, (f) any other extraordinary,
        non-recurring revenues, (g) Rent paid by or on behalf of any lessee under
        a
        Space Lease which is the subject of any proceeding or action relating to
        its
        bankruptcy, reorganization or other arrangement pursuant to the Bankruptcy
        Code
        or any similar federal or state law or which has been adjudicated a bankrupt
        or
        insolvent unless such Space Lease has been affirmed by the trustee in such
        proceeding or action, (h) Rent paid by or on behalf of any lessee under a
        Space
        Lease the demised premises of which are not occupied either by such lessee
        or by
        a sublessee thereof unless the lessee thereunder has a long-term unsecured
        debt
        rating of not less than “BBB+” (or its equivalent) from the Rating Agency, (i)
        Rent paid by or on behalf of any lessee under a Space Lease in whole or partial
        consideration for the termination of any Space Lease, (j) rent paid by or
        on
        behalf of lessees under month-to-month Space Leases for lessees which have
        been
        in occupancy for less than six (6) months, (k) rent paid by or on behalf
        of any
        lessee under a Space Lease that is more than thirty (30) days in arrears
        in its
        obligations under such Space Lease, (l) Rents paid by or on behalf of lessees
        who have given notice that they will be vacating the premises demised under
        their respective Space Leases more than thirty (30) days prior to the stated
        expiration date set forth in such Space Leases, or (m) sales tax rebates
        from
        any Governmental Authority.

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

      “Operation
        and Maintenance Expense Escrow Account”
shall
        mean the Escrow Account maintained pursuant to Section 5.09 hereof relating
        to
        the payment of Operating Expenses (exclusive of Basic Carrying
        Costs).

       

      “Operation
        and Maintenance Expense Sub-Account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof into which sums allocated for the payment of Cash Expenses, Net Capital
        Expenditures and approved Extraordinary Expenses shall be
        deposited.

       

      “Pad
        Owners”
shall
        mean any owner of any fee interest in property contiguous to or surrounded by
        the Property who has entered into or is subject to a reciprocal easement
        agreement or other agreement or agreements with Borrower either (a) in
        connection with an existing or potential improvement on such property or
        (b)
        relating to or affecting the Property. 

       

      “Payment
        Date”
shall
        have the meaning set forth in the Note.

       

      “PBGC”
shall
        mean the Pension Benefit Guaranty Corporation established under ERISA, or
        any
        successor thereto.

       

      “Permitted
        Encumbrances”
shall
        have the meaning set forth in Section 2.05(a) hereof.

       

      “Person”
shall
        mean any individual, corporation, limited liability company, partnership,
        joint
        venture, estate, trust, unincorporated association, any federal, state, county
        or municipal government or any bureau, department or agency thereof and any
        fiduciary acting in such capacity on behalf of any of the
        foregoing.

       

      “Plan”
shall
        mean an employee benefit or other plan established or maintained by Borrower,
        Guarantor or any ERISA Affiliate during the five-year period ended prior
        to the
        date of this Security Instrument or to which Borrower, Guarantor or any ERISA
        Affiliate makes, is obligated to make or has, within the five year period
        ended
        prior to the date of this Security Instrument, been required to make
        contributions (whether or not covered by Title IV of ERISA or Section 302
        of
        ERISA or Section 401(a) or 412 of the Code), other than a Multiemployer
        Plan.

       

      “Premises”
shall
        have the meaning set forth in granting clause (a) of this Security
        Instrument.

       

      “Principal
        Amount”
shall
        mean the Loan Amount as such amount may be reduced from time to time pursuant
        to
        the terms of this Security Instrument, the Note or the other Loan
        Documents.

       

      “Pro-Forma
        Net Operating Income”
shall
        mean Pro-Forma Operating Income less Pro-Forma Operating
        Expenses.

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

      “Pro-Forma
        Operating Expenses”
shall
        mean projected annualized Operating Expenses based on a trailing twelve
        (12)-month period as reasonably adjusted by Lender to take into account,
        among
        other things, anticipated increases or decreases in Operating
        Expenses.

       

      “Pro-Forma
        Operating Income”
shall
        mean the lesser of (i) projected Operating Income for the immediately subsequent
        12-month period and (ii) actual Operating Income for the immediately preceding
        12-month period, as increased by scheduled rent increases set forth in the
        Space
        Leases and rent anticipated from tenants under Space Leases relating to any
        portion of the Premises which was previously not occupied provided such tenants
        are then in occupancy pursuant to Space Leases entered into in accordance
        with
        the terms of this Security Instrument and have paid all rents due under the
        Space Lease without abatement, suspension, deferment, diminution, reduction
        or
        other allowances for at least one full calendar month, in each case as
        determined by Lender based on the most recent rent roll and such other
        information as is required to be delivered by Borrower pursuant to Section
        2.09
        hereof and as reasonably adjusted by Lender to take into account, among other
        things, a vacancy factor equal to the greater of (x) anticipated vacancies
        for
        the succeeding 12-month period and (b) actual vacancies during the immediately
        preceding 12-month period. 

       

      “Prohibited
        Person”
means
        any Person identified on the OFAC List or any other Person with whom a U.S.
        Person may not conduct business or transactions by prohibition of Federal
        law or
        Executive Order of the President of the United States of America. 

       

      “Property”
shall
        have the meaning set forth in the granting clauses of this Security
        Instrument.

       

      “Property
        Agreements”
shall
        mean all agreements, grants of easements and/or rights-of-way, reciprocal
        easement agreements, permits, declarations of covenants, conditions and
        restrictions, disposition and development agreements, planned unit development
        agreements, management or parking agreements, party wall agreements or other
        instruments affecting the Property, including, without limitation any agreements
        with Pad Owners, but not including any brokerage agreements, management
        agreements, service contracts, Space Leases or the Loan Documents.

       

      “Rating
        Agency”
shall
        mean Standard & Poor’s Ratings Services, Inc., a division of The McGraw-Hill
        Company, Inc. (“Standard
        & Poor’s”),
        Fitch, Inc., and Moody’s Investors Service, Inc. (“Moody’s”),
        collectively, and any successor to any of them; provided, however, that at
        any
        time after a Securitization, “Rating Agency” shall mean those of the foregoing
        rating agencies that from time to time rate the securities issued in connection
        with such Securitization.

       

      “Real
        Estate Taxes”
shall
        mean all real estate taxes, assessments (including, without limitation, all
        assessments for public improvements or benefits, whether or not commenced
        or
        completed prior to the date hereof and whether or not commenced or completed
        within the term of this Security Instrument), water, sewer or other rents
        and
        charges, and all other governmental charges, in each case whether general
        or
        special, ordinary or extraordinary, or foreseen or unforeseen, of every
        character in respect of the Property (including all interest and penalties
        thereon), which at any time prior to, during or in respect of the term hereof
        may be assessed or imposed on or in respect of or be a lien upon the Property
        or
        any part thereof or any estate, right, title or interest
        therein.

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

      

       

      “Realty”
shall
        have the meaning set forth in Section 2.05(b) hereof.

       

      “Recurring
        Replacement Expenditures”
shall
        mean expenditures related to capital repairs, replacements and improvements
        performed at the Property from time to time. 

       

      “Recurring
        Replacement Monthly Installment”
shall
        mean the amount per month as set forth on Exhibit B attached hereto and made
        a
        part hereof.

       

      “Recurring
        Replacement Reserve Escrow Account”
shall
        mean the Escrow Account maintained pursuant to Section 5.08 hereof relating
        to
        the payment of Recurring Replacement Expenditures.

       

      “Recurring
        Replacement Reserve Sub-Account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof into which the Recurring Replacement Monthly Installment shall be
        deposited.

       

      “Reletting
        Expenditures”
shall
        mean reasonable and actual out-of-pocket expenditures payable to bona-fide
        third
        parties incurred by Borrower relating to reletting of space at the Property
        and
        in connection with any brokerage commissions due and payable, or any
        improvements and replacements required to be made by Borrower (or reasonable
        and
        actual out-of-pocket expenditures paid to tenants in connection with any
        improvements and replacements made by tenants at the Property) under the
        terms
        of any Lease to prepare the relevant space for occupancy by the tenant
        thereunder.

       

      “Reletting
        Reserve Escrow Account”
shall
        mean the Escrow Account maintained pursuant to Section 5.07 hereof relating
        to
        the payment of Reletting Expenditures.

       

      “Reletting
        Reserve Monthly Installment”
shall
        mean (a) the amount set forth on Exhibit B attached hereto and made a part
        hereof plus (b) all sums received by Borrower in connection with any
        cancellation, termination or surrender of any Lease, including, without
        limitation, any surrender or cancellation fees, buy-out fees, or reimbursements
        for tenant improvements and leasing commissions.

       

      “Reletting
        Reserve Sub-Account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof into which the Reletting Reserve Monthly Installment shall be
        deposited.

       

      “Rent
        Account”
shall
        mean an Eligible Account, maintained at the Bank, in the joint names of Borrower
        and Lender or its successors or assigns (as secured party) as may be designated
        by Lender.

       

      “Rents”
shall
        have the meaning set forth in granting clause (f) of this Security
        Instrument.

       

      “Rent
        Roll”
shall
        have the meaning set forth in Section 2.05 (o) hereof.

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

       

      “Required
        Debt Service Coverage”
shall
        mean a Debt Service Coverage of not less than 1.20:1.0.

       

      “Required
        Debt Service Payment”
shall
        mean, as of any Payment Date, the amount of interest and principal then due
        and
        payable pursuant to the Note, together with any other sums due thereunder,
        including, without limitation, any prepayments required to be made or for
        which
        notice has been given under this Security Instrument, Default Rate Interest
        and
        premium, if any, paid in accordance therewith.

       

      “Required
        Engineering Work”
shall
        mean the immediate engineering and/or environmental remediation work set
        forth
        on Exhibit D attached hereto and made a part hereof.

       

      “Retention
        Amount”
shall
        have the meaning set forth in Section 3.04(b)(vii) hereof.

       

      “Securities
        Act”
shall
        mean the Securities Act of 1933, as the same shall be amended from time to
        time.

       

      “Securitization”
shall
        mean a public or private offering of securities by Lender or any of its
        Affiliates or their respective successors and assigns which are collateralized,
        in whole or in part, by this Security Instrument. 

       

      “Security
        Deposit Account”
shall
        have the meaning set forth in Section 5.01 hereof.

       

      “Security
        Instrument”
shall
        mean this Security Instrument as originally executed or as it may hereafter
        from
        time to time be supplemented, amended, modified or extended by one or more
        indentures supplemental hereto.

       

      “Single
        Purpose Entity”
shall
        mean a corporation, partnership, joint venture, limited liability company,
        trust
        or unincorporated association, which is formed or organized solely for the
        purpose of holding, directly, an ownership interest in the Property or a
        general
        partner interest in a Person, does not engage in any business unrelated to
        the
        Property, does not have any assets other than those related to its interest
        in
        the Property or a general partner interest in such Person, or any indebtedness,
        other than as permitted by this Security Instrument or the other Loan Documents,
        has its own separate books and records and has its own accounts, in each
        case
        which are separate and apart from the books and records and accounts of any
        other Person, holds itself out as being a Person separate and apart from
        any
        other Person and which otherwise satisfies the criteria of the Rating Agency,
        as
        in effect on the Closing Date, for a special-purpose bankruptcy-remote entity.
        

       

      “Solvent”
shall
        mean, as to any Person, that (a) the sum of the assets of such Person, at
        a fair
        valuation, exceeds its liabilities, including contingent liabilities, (b)
        such
        Person has sufficient capital with which to conduct its business as presently
        conducted and as proposed to be conducted and (c) such Person has not incurred
        debts, and does not intend to incur debts, beyond its ability to pay such
        debts
        as they mature. For purposes of this definition, “debt”
means
        any liability on a claim, and “claim”
means
        (a) a right to payment, whether or not such right is reduced to judgment,
        liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
        undisputed, legal, equitable, secured or unsecured, or (b) a right to an
        equitable remedy for breach of performance if such breach gives rise to a
        payment, whether or not such right to an equitable remedy is reduced to
        judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured,
        or unsecured. With respect to any such contingent liabilities, such liabilities
        shall be computed in accordance with GAAP at the amount which, in light of
        all
        the facts and circumstances existing at the time, represents the amount which
        can reasonably be expected to become an actual or matured
        liability.

      
        
          
          

        

        
          -24-

          
            

          

        

        
          
          

        

      

       

      “Space
        Leases”
shall
        mean any Lease or sublease thereunder (including, without limitation, any
        Major
        Space Lease) or any other agreement providing for the use and occupancy of
        a
        portion of the Property as the same may be amended, renewed or
        supplemented.

       

      “State”
shall
        mean any of the states which are members of the United States of
        America.

       

      “Stated
        Maturity”,
        when
        used with respect to the Note or any installment of interest and/or principal
        payment thereunder, shall mean the date specified in the Note as the fixed
        date
        on which a payment of principal and/or interest is due and payable.

       

      “Sub-Accounts”
shall
        have the meaning set forth in Section 5.02 hereof. 

       

      “Substantial
        Casualty”
shall
        have the meaning set forth in Section 3.04(a)(iv) hereof.

       

      “Supported
        Loan Amount”
shall
        be determined by dividing Pro-Forma Net Operating Income by 1.20 (the required
        debt service coverage ratio) (which amount must support a loan to value ratio
        of
        at least 80%) and then dividing the quotient by a mortgage loan constant
        associated with 6.09% which is 7.2641881%.

       

      “Taking”
shall
        mean a condemnation or taking pursuant to the lawful exercise of the power
        of
        eminent domain.

       

      “Transfer”
shall
        mean the conveyance, assignment, sale, mortgaging, encumbrance, pledging,
        hypothecation, granting of a security interest in, granting of options with
        respect to, or other disposition of (directly or indirectly, voluntarily
        or
        involuntarily, by operation of law or otherwise, and whether or not for
        consideration or of record) all or any portion of any legal or beneficial
        interest (a) in all or any portion of the Property; (b) if Borrower or, if
        Borrower is a partnership, any General Partner, is a corporation, in the
        stock
        of Borrower or any General Partner; (c) if Borrower is a limited or general
        partnership, joint venture, limited liability company, trust, nominee trust,
        tenancy in common or other unincorporated form of business association or
        form
        of ownership interest, in any Person having a legal or beneficial ownership
        in
        Borrower, excluding any legal or beneficial interest in any constituent limited
        partner, if Borrower is a limited partnership, or in any non-managing member,
        if
        Borrower is a limited liability company, unless such interest would, or together
        with all other direct or indirect interests in Borrower which were previously
        transferred, aggregate 49% or more of the partnership or membership, as
        applicable, interests in Borrower or would result in any Person who, as of
        the
        Closing Date, did not own, directly or indirectly, 49% or more of the
        partnership or membership, as applicable, interests in Borrower, owning,
        directly or indirectly, 49% or more of the partnership or membership, as
        applicable, interests in Borrower and excluding any legal or beneficial interest
        in any General Partner unless such interest would, or together with all other
        direct or indirect interest in the General Partner which were previously
        transferred, aggregate 49% or more of the partnership or membership, as
        applicable, interests in the General Partner (or result in a change in control
        of the management of the General Partner from the individuals exercising
        such
        control immediately prior to the conveyance or other disposition of such
        legal
        or beneficial interest) and shall also include, without limitation to the
        foregoing, the following: an installment sales agreement wherein Borrower
        agrees
        to sell the Property or any part thereof or any
        interest therein for a price to be paid in installments; an agreement by
        Borrower leasing all or substantially all of the Property to one or more
        Persons
        pursuant to a single or related transactions, or a sale, assignment or other
        transfer of, or the grant of a security interest in, Borrower’s right, title and
        interest in and to any Leases or any Rent; any instrument subjecting the
        Property to a condominium regime or transferring ownership to a cooperative
        corporation; and the dissolution 

       

      
        
          
          

        

        
          -25-

          
            

          

        

        
          
          

        

      

       

      or
        termination of Borrower or the merger or consolidation of Borrower with any
        other Person. Notwithstanding the foregoing, “Transfer” shall not include (I) a
        transfer which would otherwise be a Transfer pursuant to clause (c) above
        with
        respect to Borrower if David Lichtenstein (“Original
        Principal”)
        or one
        or more of David Lichtenstein’s family members or a trust formed for the benefit
        of such family member, as provided in clause (III)(A) of this sentence,
        continues to own not less than twenty percent (20%) of Borrower (whether
        directly or through one or more Persons), if provided all of the following
        conditions are satisfied if (i) written notice of any transfer pursuant to
        this
        proviso is given to Lender together with such documents relating to the transfer
        as Lender may reasonably require, (ii) control over the management and operation
        of the Property is retained directly or indirectly by Original Principal,
        (iii)
        in the event that any Person (a “Principal
        Transferee”)
        who
        does not, as of the Closing Date, own or Control, directly or indirectly,
        49% or
        more of the partnership or membership, as applicable, interests in Borrower
        acquires, directly or indirectly, 49% or more of the partnership or membership,
        as applicable, interests in Borrower, Lender is furnished an opinion, in
        form
        and substance and from counsel reasonably satisfactory to Lender, substantially
        similar to the Insolvency Opinion which discusses the substantive
        non-consolidation of Borrower with the Principal Transferee, (iv) no such
        transfer has any adverse effect either on the Single Purpose Entity status
        of
        Borrower under the requirements of any Rating Agency or on the status of
        Borrower as a continuing legal entity liable for the payment of the Debt
        and the
        performance of all other obligations secured hereby, (v) Borrower has delivered
        a letter from each Rating Agency confirming that any rating issued by the
        Rating
        Agency in connection with a Securitization will not, as a result of the
        transfer, be downgraded from the then current ratings thereof, qualified
        or
        withdrawn, (vi) in the event that any Person (together with its Affiliates)
        acquires a twenty percent (20%) or greater interest, directly or indirectly,
        in
        Borrower or there is a change in Control of Borrower, as a result of such
        transfer, Lender shall have consented to such transfer in its sole and absolute
        discretion, (II) transfers made by devise or descent or by operation of law
        upon
        the death of a partner, member or shareholder of Borrower or General Partner
        or
        any Person owning a direct or indirect legal or beneficial interest in Borrower
        or General Partner if: (i) written notice of any transfer pursuant to this
        proviso is given to Lender together with such documents relating to the transfer
        as Lender may reasonably require, (ii) control over the management and operation
        of the Property is retained by the Original Principal at all times prior
        to the
        death or legal incapacity of the Original Principal and is thereafter assumed
        by
        Persons who are acceptable in all respects to Lender in its sole and absolute
        discretion, (iii) no such transfer by the Original Principal will release
        the
        respective estate from any liability as a Guarantor, and (iv) no such transfer,
        death or other event has any adverse effect either on the Single Purpose
        Entity
        status of Borrower under the requirements of any Rating Agency or on the
        status
        of Borrower as a continuing legal entity liable for the payment of the Debt
        and
        the performance of all other obligations secured hereby, nor (III) subject
        to
        the provisions of clauses (I)(i) through (I)(iv) above and provided, that
        (i)
        any inter vivos transfer of all or any portion of the Property or any inter
        vivos transfer or issuance of capital stock (or other ownership interests)
        in
        Borrower or General Partner is made in connection with Original Principal’s bona
        fide, good faith estate planning, (ii) Original Principal does not transfer
        in
        excess of 49% of its direct or indirect ownership interest in Borrower or,
        if
        Original Principal does transfer in excess of 49% of its direct or indirect
        ownership interests in Borrower, Lender is furnished an opinion, in form
        and
        substance and from counsel reasonably satisfactory to Lender, substantially
        similar to the Insolvency Opinion which discusses the substantive
        non-consolidation of Borrower with the proposed transferee, and (iii) the
        Person(s) with Control of Borrower or the management of the Property are
        (x) the
        same Person(s) who had such Control and management rights immediately prior
        to
        the transfer in question, or (y) reasonably acceptable to Lender, (A) an
        inter
        vivos or testamentary transfer of all or any portion of the ownership interest
        in Borrower to one or more family members of Original Principal or a trust
        in
        which all of the beneficial interest is held by one or more family members
        of
        Original Principal or a partnership, limited liability company, corporation
        or
        other legal entity in which a majority of the capital and profits interests
        are
        held by one or more family members of Original Principal, or (B) any inter
        vivos
        or testamentary transfer or issuance of capital stock (or other ownership
        interests) in the General Partner to one or more family members of Original
        Principal, a trust in which all of the beneficial interest is held by one
        or
        more family members of Original Principal or a partnership, limited liability
        company, corporation or other legal entity in which a majority of the capital
        and profits interests are held by one or more family members of Original
        Principal. As used herein, “family members” shall include spouses, children and
        grandchildren. For purposes of this definition, “Borrower” shall mean
        individually and/or collectively any of the limited liability companies
        comprising Borrower. 

       

      “UCC”
shall
        mean the Uniform Commercial Code as in effect from time to time in the State
        in
        which the Property is located. 

       

      “Unscheduled
        Payments”
shall
        mean (a) all Loss Proceeds that Borrower has elected or is required to apply
        to
        the repayment of the Debt pursuant to this Security Instrument, the Note
        or any
        other Loan Documents, (b) any funds representing a voluntary or involuntary
        principal prepayment and (c) any Net Proceeds.

       

      “Use
        Requirements”
shall
        mean any and all building codes, permits, certificates of occupancy or
        compliance, laws, regulations, or ordinances (including, without limitation,
        health, pollution, fire protection, medical and day-care facilities, waste
        product and sewage disposal regulations), restrictions of record, easements,
        reciprocal easements, declarations or other agreements affecting the use
        of the
        Property or any part thereof.

       

      “Welfare
        Plan”
shall
        mean an employee welfare benefit plan as defined in Section 3(1) of ERISA
        established or maintained by Borrower, Guarantor or any ERISA Affiliate or
        that
        covers any current or former employee of Borrower, Guarantor or any ERISA
        Affiliate.

       

      “Work”
shall
        have the meaning set forth in Section 3.04(a)(i) hereof.

       

      “Yield
        Maintenance Reserve Escrow Account”
shall
        mean the Escrow Account maintained pursuant to Section 5.17 hereof relating
        to
        the payment of certain prepayment fees.

      
        
          
          

        

        
          -26-

          
            

          

        

        
          
          

        

      

       

      “Yield
        Maintenance Reserve Sub-account”
shall
        mean the Sub-Account of the Central Account established pursuant to Section
        5.02
        hereof into which the Initial Yield Maintenance Reserve Account shall be
        deposited.

       

      ARTICLE
        II: REPRESENTATIONS,
        WARRANTIES 

       

      AND
        COVENANTS OF BORROWER

       

      Section
        2.01. Payment
        of Debt.
        Borrower will pay the Debt at the time and in the manner provided in the
        Note
        and the other Loan Documents, all in lawful money of the United States of
        America in immediately available funds.

       

      Section
        2.02. Representations,
        Warranties and Covenants of Borrower.
        Borrower represents, warrants and covenants to Lender:

       

      (a) Organization
        and Authority.
        Borrower (i) is a limited liability company, general partnership, limited
        partnership or corporation, as the case may be, duly organized, validly existing
        and in good standing under the laws of the jurisdiction of its formation,
        (ii)
        has all requisite power and authority and all necessary licenses and permits
        to
        own and operate the Property and to carry on its business as now conducted
        and
        as presently proposed to be conducted and (iii) is duly qualified, authorized
        to
        do business and in good standing in the jurisdiction where the Property is
        located and in each other jurisdiction where the conduct of its business
        or the
        nature of its activities makes such qualification necessary. If Borrower
        is a
        limited liability company, limited partnership or general partnership, each
        general partner or managing member, as applicable, of Borrower which is a
        corporation is duly organized, validly existing, and in good standing under
        the
        laws of the jurisdiction of its incorporation.

       

      (b) Power.
        Borrower and, if applicable, each General Partner has full power and authority
        to execute, deliver and perform, as applicable, the Loan Documents to which
        it
        is a party, to make the borrowings thereunder, to execute and deliver the
        Note
        and to grant to Lender a first lien on and security interest in the Property,
        subject only to the Permitted Encumbrances.

       

      (c) Authorization
        of Borrowing.
        The
        execution, delivery and performance of the Loan Documents to which Borrower
        is a
        party, the making of the borrowings thereunder, the execution and delivery
        of
        the Note, the grant of the liens on the Property pursuant to the Loan Documents
        to which Borrower is a party and the consummation of the Loan are within
        the
        powers of Borrower and have been duly authorized by Borrower and, if applicable,
        the General Partners, by all requisite action (and Borrower hereby represents
        that no approval or action of any member, limited partner or shareholder,
        as
        applicable, of Borrower is required to authorize any of the Loan Documents
        to
        which Borrower is a party other than such approval or action that has already
        been granted or taken) and will constitute the legal, valid and binding
        obligation of Borrower, enforceable against Borrower in accordance with their
        terms, except as enforcement may be stayed or limited by bankruptcy, insolvency
        or similar laws affecting the enforcement of creditors’ rights generally and by
        general principles of equity (whether considered in proceedings at law or
        in
        equity) and will not (i) violate any provision of its partnership agreement
        or
        partnership certificate or certificate of incorporation or by-laws, or operating
        agreement, or articles of organization, as applicable, or, to its knowledge,
        any
        law, judgment, order, rule or regulation of any court, arbitration panel
        or
        other Governmental Authority, domestic or foreign, or other Person affecting
        or
        binding upon Borrower or the Property, or (ii) violate any provision of any
        indenture, agreement, mortgage, deed of trust, contract or other instrument
        to
        which Borrower or, if applicable, any General Partner is a party or by which
        any
        of their respective property, assets or revenues are bound, or be in conflict
        with, result in an acceleration of any obligation or a breach of or constitute
        (with notice or lapse of time or both) a default or require any payment or
        prepayment under, any such indenture, agreement, mortgage, deed of trust,
        contract or other instrument, or (iii) result in the creation or imposition
        of
        any lien, except those in favor of Lender as provided in the Loan Documents
        to
        which it is a party.

      
        
          
          

        

        
          -27-

          
            

          

        

        
          
          

        

      

       

      (d) Consent.
        Neither
        Borrower nor, if applicable, any General Partner, is required to obtain any
        consent, approval or authorization from, or to file any declaration or statement
        with, any Governmental Authority or other agency in connection with or as
        a
        condition to the execution, delivery or performance of this Security Instrument,
        the Note or the other Loan Documents which has not been so obtained or
        filed.

       

      (e) Intentionally
        Deleted.

       

      (f) Other
        Agreements.
        Borrower is not a party to nor is otherwise bound by any agreements or
        instruments which, individually or in the aggregate, are reasonably likely
        to
        have a Material Adverse Effect. Neither Borrower nor, if applicable, any
        General
        Partner, is in violation of its organizational documents or other restriction
        or
        any agreement or instrument by which it is bound, or any judgment, decree,
        writ,
        injunction, order or award of any arbitrator, court or Governmental Authority,
        or any Legal Requirement, in each case, applicable to Borrower or the Property,
        except for such violations that would not, individually or in the aggregate,
        have a Material Adverse Effect.

       

      (g) Maintenance
        of Existence.
        Borrower and, if applicable, General Partner at all times since their formation
        have been duly formed and existing and shall preserve and keep in full force
        and
        effect their existence as a Single Purpose Entity.

       

      (ii) Borrower
        and, if applicable, General Partner, at all times since their organization
        have
        complied, and will continue to comply, with the provisions of its certificate
        and agreement of partnership or certificate of incorporation and by-laws
        or
        articles of organization and operating agreement, as applicable, and the
        laws of
        its jurisdiction of organization relating to partnerships, corporations or
        limited liability companies, as applicable.

       

      (iii) Borrower
        and, if applicable, General Partner have done or caused to be done and will
        do
        all things necessary to observe organizational formalities and preserve their
        existence and each Borrower and, if applicable, General Partner will not
        amend,
        modify or otherwise change the certificate and agreement of partnership or
        certificate of incorporation and by-laws or articles of organization and
        operating agreement, as applicable, or other organizational documents of
        Borrower and, if applicable, General Partner without the prior written consent
        of Lender. 

       

      (iv) Borrower
        and, if applicable, General Partner, have at all times accurately maintained,
        and will continue to accurately maintain, their respective financial statements,
        accounting records and other partnership, company or corporate documents
        separate from those of any other Person, and Borrower will file its own tax
        returns or, if Borrower and/or, if applicable, General Partner is part of
        a
        consolidated group for purposes of filing tax returns, Borrower and General
        Partner, as applicable will be shown as separate members of such group. Borrower
        and, if applicable, General Partner have not at any time since their formation
        commingled, and will not commingle, their respective assets with those of
        any
        other Person and will maintain their assets in such a manner such that it
        will
        not be costly or difficult to segregate, ascertain or identify their individual
        assets from those of any other Person. Borrower and, if applicable, General
        Partner will not permit any Affiliate independent access to their bank accounts.
        Borrower and, if applicable, General Partner have at all times since their
        formation accurately maintained and utilized, and will continue to accurately
        maintain and utilize, their own separate bank accounts, payroll and separate
        books of account, stationery, invoices and checks.

      
        
          
          

        

        
          -28-

          
            

          

        

        
          
          

        

      

      (v) Borrower
        and, if applicable, General Partner, have at all times paid, and will continue
        to pay, their own liabilities from their own separate assets and shall each
        allocate and charge fairly and reasonably any overhead which Borrower and,
        if
        applicable, General Partner, shares with any other Person, including, without
        limitation, for office space and services performed by any employee of another
        Person.

       

      (vi) Borrower
        and, if applicable, General Partner, have at all times identified themselves,
        and will continue to identify themselves, in all dealings with the public,
        under
        their own names and as separate and distinct entities and shall correct any
        known misunderstanding regarding their status as separate and distinct entities.
        Borrower and, if applicable, General Partner, have not at any time identified
        themselves, and will not identify themselves, as being a division of any
        other
        Person.

       

      (vii) Borrower
        and, if applicable, General Partner, have been at all times, and will continue
        to use commercially reasonable efforts to be, adequately capitalized in light
        of
        the nature of their respective businesses; provided, however, in no event
        shall
        any direct or indirect member, partner or principal of Borrower be required
        to
        make additional capital contributions to any Borrower.

       

      (viii) Borrower
        and, if applicable, General Partner, (A) have not owned, do not own and will
        not
        own any assets or property other than the Property and any incidental personal
        property necessary for the ownership, management or operation of the Property,
        (B) have not engaged and will not engage in any business other than the
        ownership, management and operation of the Property, (C) have not incurred
        and
        will not incur any debt, secured or unsecured, direct or contingent (including
        guaranteeing any obligation), other than (X) the Loan, and (Y) unsecured
        trade
        and operational debt which (1) is not evidenced by a note, (2) is incurred
        in
        the ordinary course of the operation of the Property, (3) does not exceed
        in the
        aggregate two percent (2%) of the Allocated Loan Amount for the Property
        and (4)
        which is, unless being contested in accordance with the terms of this Security
        Instrument, paid prior to the earlier to occur of the forty-fifth (45th)
        day
        after the date incurred and the date when due, (D) have not and will not
        pledge
        their assets for the benefit of any other Person, and (E) have not made and
        will
        not make any loans or advances to any Person (including any
        Affiliate).

       

      (ix) Neither
        Borrower nor, if applicable, any General Partner will change its name or
        principal place of business without giving Lender at least thirty (30) days
        prior written notice thereof.

       

      (x) Neither
        Borrower nor, if applicable, any General Partner have, and neither of such
        Persons will have, any subsidiaries.

       

      (xi) Borrower
        will preserve and maintain its existence as a limited liability company as
        of
        the Closing Date, which is organized and existing under the laws of the State
        in
        which it is organized as of the Closing Date and all material rights,
        privileges, tradenames and franchises.

      
        
          
          

        

        
          -29-

          
            

          

        

        
          
          

        

      

       

      (xii) Neither
        Borrower, nor, if applicable, any General Partner, will merge or consolidate
        with, or sell all or substantially all of its respective assets to any Person,
        or liquidate, wind up or dissolve itself (or suffer any liquidation, winding
        up
        or dissolution). Neither any Borrower, nor, if applicable, any General Partner
        will acquire any business or assets from, or capital stock or other ownership
        interest of, or be a party to any acquisition of, any Person.

       

      (xiii) Borrower
        and, if applicable, General Partner, have not at any time since their formation
        assumed, guaranteed or held themselves out to be responsible for, and will
        not
        assume, guarantee or hold themselves out to be responsible for the liabilities
        or the decisions or actions respecting the daily business affairs of their
        partners, shareholders or members or any predecessor company, corporation
        or
        partnership, each as applicable, any Affiliates, or any other Persons. Borrower
        has not at any time since its formation acquired, and will not acquire,
        obligations or securities of its partners or shareholders, members or any
        predecessor company, corporation or partnership, each as applicable, or any
        Affiliates. Borrower and, if applicable, General Partner, have not at any
        time
        since their formation made, and will not make, loans to its partners, members
        or
        shareholders or any predecessor company, corporation or partnership, each
        as
        applicable, or any Affiliates of any of such Persons. Borrower and, if
        applicable, General Partner, have no known contingent liabilities nor do
        they
        have any material financial liabilities under any indenture, mortgage, deed
        of
        trust, loan agreement or other agreement or instrument to which such Person
        is a
        party or by which it is otherwise bound other than under the Loan
        Documents.

       

      (xiv) Borrower
        has not at any time since its formation entered into and was not a party
        to,
        and, will not enter into or be a party to, any transaction with its Affiliates,
        members, partners or shareholders, as applicable, or any Affiliates thereof
        except in the ordinary course of business of Borrower on terms which are
        no less
        favorable to Borrower than would be obtained in a comparable arm’s length
        transaction with an unrelated third party.

       

      (xv) If
        Borrower is a limited partnership or a limited liability company, the General
        Partner shall be a corporation or limited liability company whose sole asset
        is
        its interest in Borrower and the General Partner will at all times comply,
        and
        will cause Borrower to comply, with each of the representations, warranties,
        and
        covenants contained in this Section 2.02(g) as if such representation, warranty
        or covenant was made directly by such General Partner.

       

      (xvi) Borrower
        shall at all times cause there to be at least two (2) duly appointed members
        of
        the board of directors or board of managers or other governing board or body,
        as
        applicable (an “Independent
        Director”),
        of,
        if Borrower is a corporation or single member limited liability company formed
        in the State of Delaware, Borrower, and, if Borrower is a limited partnership
        or
        multi-member limited liability company, of the General Partner, reasonably
        satisfactory to Lender who shall not have been at the time of such individual’s
        appointment, and may not be or have been at any time (A) a shareholder, officer,
        director, attorney, counsel, partner, member or employee of Borrower or any
        of
        the foregoing Persons or Affiliates thereof, (B) a customer or creditor of,
        or
        supplier or service provider to, Borrower or any of its shareholders, partners,
        members or their Affiliates, (C) a member of the immediate family of any
        Person
        referred to in (A) or (B) above, D) a Person Controlling, Controlled by or
        under
        common Control with any Person referred to in (A) through (C) above. A natural
        person who otherwise satisfies the foregoing definition except for being
        the
        Independent Director of a Single Purpose Entity Affiliated with Borrower
        or
        General Partner shall not be disqualified from serving as an Independent
        Director if such individual is at the time of initial appointment, or at
        any
        time while serving as the Independent Director, an Independent Director of
        a
        Single Purpose Entity Affiliated with Borrower or General Partner if such
        individual is an independent director provided by a nationally-recognized
        company that provides professional independent directors.

      
        
          
          

        

        
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      (xvii)
         Borrower
        and, if applicable, General Partner, shall not cause or permit the board
        of
        directors or board of managers or other governing board or body, as applicable,
        of each Borrower or, if applicable, General Partner, to take any action which,
        under the terms of any certificate of incorporation, by-laws or articles
        of
        organization with respect to any common stock, requires a unanimous vote
        of the
        board of directors of Borrower, or, if applicable, the General Partner, unless
        at the time of such action there shall be at least two members who are
        Independent Directors.

       

      (xviii) Borrower
        and, if applicable, General Partner shall pay the salaries of their own
        employees and maintain a sufficient number of employees in light of their
        contemplated business operations.

       

      (xix) Borrower
        shall, and shall cause its Affiliates to, conduct its business so that the
        assumptions made with respect to Borrower in that certain opinion letter
        relating to substantive non-consolidation dated the date hereof (the
“Insolvency
        Opinion”)
        delivered in connection with the Loan shall be true and correct in all
        respects.

       

      (h) No
        Defaults.
        No
        Default or Event of Default has occurred and is continuing or would occur
        as a
        result of the consummation of the transactions contemplated by the Loan
        Documents. To the best of Borrower’s knowledge, Borrower is not in default
        beyond any applicable notice and/or grace periods in the payment or performance
        of any of its Contractual Obligations in any respect.

       

      (i) Consents
        and Approvals.
        Borrower and, if applicable, each General Partner, have obtained or made
        all
        necessary (i) consents, approvals and authorizations, and registrations and
        filings of or with all Governmental Authorities and (ii) consents, approvals,
        waivers and notifications of partners, stockholders, creditors, lessors and
        other nongovernmental Persons, in each case, which are required to be obtained
        or made by Borrower or, if applicable, the General Partner, in connection
        with
        the execution and delivery of, and the performance by Borrower of its
        obligations under, the Loan Documents.

       

      (j) Investment
        Company Act Status, etc.
        Borrower is not (i) an “investment company,” or a company “controlled” by an
“investment company,” as such terms are defined in the Investment Company Act of
        1940, as amended, (ii) a “holding company” or a “subsidiary company” of a
“holding company” or an “affiliate” of either a “holding company” or a
“subsidiary company” within the meaning of the Public Utility Holding Company
        Act of 1935, as amended, or (iii) subject to any other federal or state law
        or
        regulation which purports to restrict or regulate its ability to borrow
        money.

       

      (k) Compliance
        with Law.
        (i)
        Except as previously disclosed to Lender in writing, Borrower has received
        no
        notice of violation of any Legal Requirements and (ii) except for such
        violations which would not, individually or in the aggregate, have a Material
        Adverse Effect, Borrower is in compliance in all material respects with all
        Legal Requirements to which it or the Property is subject, including, without
        limitation, all Environmental Statutes, the Occupational Safety and Health
        Act
        of 1970, the Americans with Disabilities Act and ERISA. No portion of the
        Property has been or will be purchased, improved, fixtured, equipped or
        furnished with proceeds of any illegal activity and to the best of Borrower’s
        knowledge, no illegal activities are being conducted at or from the
        Property.

      
        
          
          

        

        
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      (l) Financial
        Information.
        To the
        best of Borrower’s knowledge, all financial data that has been delivered by
        Borrower to Lender (i) is true, complete and correct in all material respects,
        (ii) accurately represents the financial condition and results of operations
        of
        the Persons covered thereby as of the date on which the same shall have been
        furnished in all material respects, and (iii) to the extent prepared by an
        independent certified public accounting firm, has been prepared in accordance
        with GAAP (or such other accounting basis as is reasonably acceptable to
        Lender)
        throughout the periods covered thereby except as disclosed therein. As of
        the
        date hereof, neither Borrower nor, if applicable, any General Partner, has
        any
        contingent liability, liability for taxes or other unusual or forward commitment
        not reflected in such financial statements delivered to Lender. Since the
        date
        of the last financial statements delivered by Borrower to Lender except as
        otherwise disclosed in such financial statements or notes thereto, there
        has
        been no change in the assets, liabilities or financial position of Borrower
        nor,
        if applicable, any General Partner, or in the results of operations of Borrower
        which would have a Material Adverse Effect. Neither Borrower nor, if applicable,
        any General Partner, has incurred any obligation or liability, contingent
        or
        otherwise not reflected in such financial statements which would have a Material
        Adverse Effect.

       

      (m) Transaction
        Brokerage Fees.
        Neither
        Borrower nor Lender have dealt with any financial advisors, brokers,
        underwriters, placement agents, agents or finders in connection with the
        transactions contemplated by this Security Instrument. BORROWER
        HEREBY AGREES TO INDEMNIFY AND HOLD LENDER HARMLESS FOR, FROM AND AGAINST
        ANY
        AND ALL CLAIMS, LIABILITIES, COSTS AND EXPENSES OF ANY KIND IN ANY WAY RELATING
        TO OR ARISING FROM (I) A CLAIM BY ANY PERSON THAT SUCH PERSON ACTED ON BEHALF
        OF
        BORROWER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREIN OR (II)
        ANY
        BREACH OF THE FOREGOING REPRESENTATION. THE PROVISIONS OF THIS SUBSECTION
        (M)
        SHALL SURVIVE THE REPAYMENT OF THE DEBT.

       

      (n) Federal
        Reserve Regulations.
        No part
        of the proceeds of the Loan will be used for the purpose of purchasing or
        acquiring any “margin stock” within the meaning of Regulations T, U or X of the
        Board of Governors of the Federal Reserve System or for any other purpose
        which
        would be inconsistent with such Regulations T, U or X or any other Regulations
        of such Board of Governors, or for any purposes prohibited by Legal Requirements
        or by the terms and conditions of the Loan Documents.

       

      (o) Pending
        Litigation.
        Except
        as previously disclosed in writing to Lender, there are no actions, suits
        or
        proceedings pending or, to the knowledge of Borrower, threatened against
        or
        affecting Borrower or the Property in any court or before any Governmental
        Authority which if adversely determined either individually or collectively
        has
        or is reasonably likely to have a Material Adverse Effect. 

       

      (p) Solvency;
        No Bankruptcy.
        Borrower and, if applicable, the General Partner, (i) is and has at all times
        been Solvent and will remain Solvent immediately upon the consummation of
        the
        transactions contemplated by the Loan Documents and (ii) is free from
        bankruptcy, reorganization or arrangement proceedings or a general assignment
        for the benefit of creditors and is not contemplating the filing of a petition
        under any state or federal bankruptcy or insolvency laws or the liquidation
        of
        all or a major portion of such Person’s assets or property and Borrower has no
        knowledge of any Person contemplating the filing of any such petition against
        it
        or, if applicable, the General Partner. None of the transactions contemplated
        hereby will be or have been made with an intent to hinder, delay or defraud
        any
        present or future creditors of Borrower and Borrower has received reasonably
        equivalent value in exchange for its obligations under the Loan Documents.
        Borrower’s assets do not, and immediately upon consummation of the transaction
        contemplated in the Loan Documents will not, constitute unreasonably small
        capital to carry out its business as presently conducted or as proposed to
        be
        conducted. Borrower does not intend to, nor believe that it will, incur debts
        and liabilities beyond its ability to pay such debts as they may
        mature.

      
        
          
          

        

        
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      (q) Use
        of
        Proceeds.
        The
        proceeds of the Loan shall be applied by Borrower to, inter alia,
        (i)
        satisfy certain secured loans presently encumbering all or a part of the
        Property and (ii) pay certain transaction costs incurred by Borrower in
        connection with the Loan. No portion of the proceeds of the Loan will be
        used by
        Borrower for family, personal, agricultural or household use.

       

      (r) Tax
        Filings.
        Borrower and, if applicable, each General Partner, have filed all federal,
        state
        and local tax returns required to be filed and have paid or made adequate
        provision for the payment of all federal, state and local taxes, charges
        and
        assessments payable by Borrower and, if applicable, each General Partner.
        Borrower and, if applicable, each General Partner, believe that their respective
        tax returns properly reflect the income and taxes of Borrower and said General
        Partner, if any, for the periods covered thereby, subject only to reasonable
        adjustments required by the Internal Revenue Service or other applicable
        tax
        authority upon audit.

       

      (s) Not
        Foreign Person.
        Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the
        Code.

       

      (t) ERISA.
        (i)
The
        assets of Borrower and Guarantor are not and will not become treated as “plan
        assets”, whether by operation of law or under regulations promulgated under
        ERISA. Each Plan and Welfare Plan, and, to the knowledge of Borrower, each
        Multiemployer Plan, is in compliance in all material respects with, and has
        been
        administered in all material respects in compliance with, its terms and the
        applicable provisions of ERISA, the Code and any other applicable Legal
        Requirement, and no event or condition has occurred and is continuing as
        to
        which Borrower would be under an obligation to furnish a report to Lender
        under
        clause (ii)(A) of this Section. Other than an application for a favorable
        determination letter with respect to a Plan, there are no pending issues
        or
        claims before the Internal Revenue Service, the United States Department
        of
        Labor or any court of competent jurisdiction related to any Plan or Welfare
        Plan
        under which Borrower, Guarantor or any ERISA Affiliate, directly or indirectly
        (through an indemnification agreement or otherwise), could be subject to
        any
        material risk of liability under Section 409 or 502(i) of ERISA or Section
        4975
        of the Code. No Welfare Plan provides or will provide benefits, including,
        without limitation, death or medical benefits (whether or not insured) with
        respect to any current or former employee of Borrower, Guarantor or any ERISA
        Affiliate beyond his or her retirement or other termination of service other
        than (A) coverage mandated by applicable law, (B) death or disability benefits
        that have been fully provided for by fully paid up insurance or (C) severance
        benefits.

       

      (ii) Borrower
        will furnish to Lender as soon as possible, and in any event within ten (10)
        days after Borrower knows or has reason to believe that any of the events
        or
        conditions specified below with respect to any Plan, Welfare Plan or
        Multiemployer Plan has occurred or exists, an Officer’s Certificate setting
        forth details respecting such event or condition and the action, if any,
        that
        Borrower or its ERISA Affiliate proposes to take with respect thereto (and
        a
        copy of any report or notice required to be filed with or given to PBGC (or
        any
        other relevant Governmental Authority)) by Borrower or an ERISA Affiliate
        with
        respect to such event or condition, if such report or notice is required
        to be
        filed with the PBGC or any other relevant Governmental Authority:

       

      
        
          
          

        

        
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      (A) any
        reportable event, as defined in Section 4043 of ERISA and the regulations
        issued
        thereunder, with respect to a Plan, as to which PBGC has not by regulation
        waived the requirement of Section 4043(a) of ERISA that it be notified within
        thirty (30) days of the occurrence of such event (provided that a failure
        to
        meet the minimum funding standard of Section 412 of the Code and of Section
        302
        of ERISA, including, without limitation, the failure to make on or before
        its
        due date a required installment under Section 412(m) of the Code and of Section
        302(e) of ERISA, shall be a reportable event regardless of the issuance of
        any
        waivers in accordance with Section 412(d) of the Code), and any request for
        a
        waiver under Section 412(d) of the Code for any Plan;

       

      (B) the
        distribution under Section 4041 of ERISA of a notice of intent to terminate
        any
        Plan or any action taken by Borrower or an ERISA Affiliate to terminate any
        Plan;

       

      (C) the
        institution by PBGC of proceedings under Section 4042 of ERISA for the
        termination of, or the appointment of a trustee to administer, any Plan,
        or the
        receipt by Borrower or any ERISA Affiliate of a notice from a Multiemployer
        Plan
        that such action has been taken by PBGC with respect to such Multiemployer
        Plan;

       

      (D) the
        complete or partial withdrawal from a Multiemployer Plan by Borrower or any
        ERISA Affiliate that results in liability under Section 4201 or 4204 of ERISA
        (including the obligation to satisfy secondary liability as a result of a
        purchaser default) or the receipt by Borrower or any ERISA Affiliate of notice
        from a Multiemployer Plan that it is in reorganization or insolvency pursuant
        to
        Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated
        under Section 4041A of ERISA;

       

      (E) the
        institution of a proceeding by a fiduciary of any Multiemployer Plan against
        Borrower or any ERISA Affiliate to enforce Section 515 of ERISA, which
        proceeding is not dismissed within thirty (30) days;

       

      (F) the
        adoption of an amendment to any Plan that, pursuant to Section 401(a)(29)
        of the
        Code or Section 307 of ERISA, would result in the loss of tax-exempt status
        of
        the trust of which such Plan is a part if Borrower or an ERISA Affiliate
        fails
        to timely provide security to the Plan in accordance with the provisions
        of said
        Sections; or

       

      (G) the
        imposition of a lien or a security interest in connection with a
        Plan.

       

      (iii) Borrower
        shall not knowingly engage in or permit any transaction in connection with
        which
        Borrower, Guarantor or any ERISA Affiliate could be subject to either a civil
        penalty or tax assessed pursuant to Section 502(i) or 502(l) of ERISA or
        Section
        4975 of the Code, permit any Welfare Plan to provide benefits, including
        without
        limitation, medical benefits (whether or not insured), with respect to any
        current or former employee of Borrower, Guarantor or any ERISA Affiliate
        beyond
        his or her retirement or other termination of service other than (A) coverage
        mandated by applicable law, (B) death or disability benefits that have been
        fully provided for by paid up insurance or otherwise or (C) severance benefits,
        permit the assets of Borrower or Guarantor to become “plan assets”, whether by
        operation of law or under regulations promulgated under ERISA or adopt, amend
        (except as may be required by applicable law) or increase the amount of any
        benefit or amount payable under, or permit any ERISA Affiliate to adopt,
        amend
        (except as may be required by applicable law) or increase the amount of any
        benefit or amount payable under, any employee benefit plan (including, without
        limitation, any employee welfare benefit plan) or other plan, policy or
        arrangement, except for normal increases in the ordinary course of business
        consistent with past practice that, in the aggregate, do not result in a
        material increase in benefits expense to Borrower, Guarantor or any ERISA
        Affiliate.

      
        
          
          

        

        
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      (u) Labor
        Matters.
        No
        organized work stoppage or labor strike is pending or, to Borrower’s best
        knowledge, threatened by employees or other laborers at the Property and
        neither
        Borrower nor Manager (i) is involved in or, to the best of their knowledge,
        threatened with any labor dispute, grievance or litigation relating to labor
        matters involving any employees and other laborers at the Property, including,
        without limitation, violation of any federal, state or local labor, safety
        or
        employment laws (domestic or foreign) and/or charges of unfair labor practices
        or discrimination complaints; (ii) has engaged in any unfair labor practices
        within the meaning of the National Labor Relations Act or the Railway Labor
        Act;
        or (iii) is a party to, or bound by, any collective bargaining agreement
        or
        union contract with respect to employees and other laborers at the Property
        and
        no such agreement or contract is currently being negotiated by Borrower,
        Manager
        or any of their Affiliates.

       

      (v) Borrower’s
        Legal Status.
        Borrower’s exact legal name that is indicated on the signature page hereto,
        organizational identification number and place of business or, if more than
        one,
        its chief executive office, as well as Borrower’s mailing address, if different,
        which were identified by Borrower to Lender and contained in this Security
        Instrument, are true, accurate and complete. Borrower (i) will not change
        its
        name, its place of business or, if more than one place of business, its chief
        executive office, or its mailing address or organizational identification
        number
        if it has one without giving Lender at least thirty (30) days prior written
        notice of such change, (ii) if Borrower does not have an organizational
        identification number and later obtains one, Borrower shall promptly notify
        Lender of such organizational identification number and (iii) Borrower will
        not
        change its type of organization, jurisdiction of organization or other legal
        structure.

       

      (w) Compliance
        with Anti-Terrorism, Embargo and Anti-Money Laundering Laws.
        (i)
        None of Borrower, General Partner, any Guarantor, or any Person who owns
        any
        equity interest in or Controls Borrower, General Partner or any Guarantor
        currently is identified on the OFAC List or otherwise qualifies as a Prohibited
        Person, and Borrower has implemented procedures, approved by General Partner,
        to
        ensure that no Person who now or hereafter owns an equity interest in Borrower
        or General Partner is a Prohibited Person or Controlled by a Prohibited Person,
        and (ii) none of Borrower, General Partner, or any Guarantor are in violation
        of
        any Legal Requirements relating to anti-money laundering or anti-terrorism,
        including, without limitation, Legal Requirements related to transacting
        business with Prohibited Persons or the requirements of the Uniting and
        Strengthening America by Providing Appropriate Tools Required to Intercept
        and
        Obstruct Terrorism Act of 2001, U.S. Public Law 107-56, and the related
        regulations issued thereunder, including temporary regulations, all as amended
        from time to time. No tenant at the Property currently is identified on the
        OFAC
        List or otherwise qualifies as a Prohibited Person, and, to the best of
        Borrower’s knowledge, no tenant at the Property is owned or Controlled by a
        Prohibited Person. Borrower has implemented procedures to ensure that no
        tenant
        at the Property is a Prohibited Person or owned or Controlled by a Prohibited
        Person.

      
        
          
          

        

        
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      Section
        2.03. Further
        Acts, etc.
        Borrower will, at the cost of Borrower, and without expense to Lender, do,
        execute, acknowledge and deliver all and every such further acts, deeds,
        conveyances, mortgages, deeds of trust or deeds to secure debt, as applicable,
        assignments, notices of assignments, transfers and assurances as Lender shall,
        from time to time, reasonably require for the better assuring, conveying,
        assigning, transferring, and confirming unto Lender the property and rights
        hereby mortgaged, given, granted, bargained, sold, alienated, enfeoffed,
        conveyed, confirmed, pledged, assigned and hypothecated, or which Borrower
        may
        be or may hereafter become bound to convey or assign to Lender, or for carrying
        out or facilitating the performance of the terms of this Security Instrument
        or
        for filing, registering or recording this Security Instrument and, on demand,
        will execute and deliver and hereby authorizes Lender to execute in the name
        of
        Borrower or without the signature of Borrower to the extent Lender may lawfully
        do so, one or more financing statements, chattel mortgages or comparable
        security instruments to evidence more effectively the lien hereof upon the
        Property. Borrower grants to Lender an irrevocable power of attorney coupled
        with an interest for the purpose of protecting, perfecting, preserving and
        realizing upon the interests granted pursuant to this Security Instrument
        and to
        effect the intent hereof, all as fully and effectually as Borrower might
        or
        could do; and Borrower hereby ratifies all that Lender shall lawfully do
        or
        cause to be done by virtue hereof; provided that Lender shall not exercise
        such
        power of attorney unless and until Borrower fails to take the required action
        within five (5) Business Days of demand unless the failure to so exercise
        it
        could, in Lender’s reasonable judgment, result in a Material Adverse Effect.
        Upon receipt of an affidavit of 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 Note or other applicable Loan Document, Borrower will
        issue, in lieu thereof, a replacement Note or other applicable Loan Document,
        dated the date of such lost, stolen, destroyed or mutilated Note or other
        Loan
        Document in the same principal amount thereof and otherwise of like
        tenor.

       

      Section
        2.04. Recording
        of Security Instrument, etc.
        Borrower forthwith upon the execution and delivery of this Security Instrument
        and thereafter, at the request of Lender, from time to time, will cause this
        Security Instrument, and any security instrument creating a lien or security
        interest or evidencing the lien hereof upon the Property and each instrument
        of
        further assurance to be filed, registered or recorded in such manner and
        in such
        places as may be required by any present or future law in order to publish
        notice of and fully perfect and protect the lien or security interest hereof
        upon, and the interest of Lender in, the Property. Borrower will pay all
        filing,
        registration or recording fees, and all expenses incident to the preparation,
        execution and acknowledgment of this Security Instrument, any mortgage, deed
        of
        trust or deed to secure debt, as applicable, supplemental hereto, any security
        instrument with respect to the Property and any instrument of further assurance,
        and all federal, state, county and municipal taxes, duties, imposts, assessments
        and charges imposed on, or arising out of or in connection with the execution,
        delivery and recording of this Security Instrument, any mortgage, deed of
        trust
        or deed to secure debt, as applicable, supplemental hereto, any security
        instrument with respect to the Property or any instrument of further assurance,
        except where prohibited by law to do so, in which event Lender may declare
        the
        Debt to be immediately due and payable. Borrower shall hold harmless and
        indemnify Lender, and its successors and assigns, against any liability incurred
        as a result of the imposition of any tax on the making and recording of this
        Security Instrument.

       

      
        
          
          

        

        
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      Section
        2.05. Representations
        and Warranties as to the Property.
        Borrower represents and warrants with respect to the Property as
        follows:

       

      (a) Lien
        Priority and Perfection.
        This
        Security Instrument is a valid and enforceable (and, upon recordation in
        the
        Official Records, will be a perfected) first lien on the Property, free and
        clear of all encumbrances, security interests, and liens having priority
        over
        the lien and security interest of this Security Instrument, except for the
        items
        set forth as exceptions to or subordinate matters in the title insurance
        policy
        insuring the lien of this Security Instrument, none of which, individually
        or in
        the aggregate, materially interfere with the benefits of the security intended
        to be provided by this Security Instrument, materially affect the value or
        insurability of the Property, impair the use or operation of the Property
        for
        the use currently being made thereof or impair Borrower’s ability to pay its
        obligations in a timely manner (such items being the “Permitted
        Encumbrances”).

       

      (b) Title.
        Borrower has, subject only to the Permitted Encumbrances, good, insurable
        and
        marketable fee simple title to the Premises, Improvements and Fixtures
        (collectively, the “Realty”)
        and to
        all easements and rights benefiting the Realty and has the right, power and
        authority to mortgage, encumber, give, grant, bargain, sell, alien, enfeoff,
        convey, confirm, pledge, assign, and hypothecate the Property. Subject to
        Permitted Encumbrances, Borrower will preserve its interest in and title
        to the
        Property and will forever warrant and defend the same to Lender against any
        and
        all claims made by, through or under Borrower and will forever warrant and
        defend the validity and priority of the lien and security interest created
        herein against the claims of all Persons whomsoever claiming by, through
        or
        under Borrower. The foregoing warranty of title shall survive the foreclosure
        of
        this Security Instrument and shall inure to the benefit of and be enforceable
        by
        Lender in the event Lender acquires title to the Property pursuant to any
        foreclosure. In addition, there are no outstanding options or rights of first
        refusal to purchase the Property or Borrower’s ownership thereof.

       

      (c) Taxes
        and Impositions.
        Other
        than those being contested in accordance herewith, all taxes and other
        Impositions and governmental assessments due and owing and not delinquent
        in
        respect of, and affecting, the Property have been paid. Other than those
        being
        contested in accordance herewith, Borrower has paid all Impositions which
        constitute special governmental assessments in full, except for those
        assessments which are permitted by applicable Legal Requirements to be paid
        in
        installments, in which case all installments which are due and payable have
        been
        paid in full. There are no pending, or to Borrower’s best knowledge, proposed
        special or other assessments for public improvements or otherwise affecting
        the
        Property, nor are there any contemplated improvements to the Property that
        may
        result in such special or other assessments.

       

      (d) Casualty;
        Flood Zone.
        Except
        as set forth in the Engineering Report and Environmental Report, the Realty
        is
        in good repair and free and clear of any damage, destruction or casualty
        (whether or not covered by insurance) that would materially affect the value
        of
        the Realty or the use for which the Realty was intended, there exists no
        structural or other material defects or damages in or to the Property and
        Borrower has not received any written notice from any insurance company or
        bonding company of any material defect or inadequacies in the Property, or
        any
        part thereof, which would materially and adversely affect the insurability
        of
        the same or cause the imposition of extraordinary premiums or charges thereon
        or
        of any termination or threatened termination of any policy of insurance or
        bond.
        No portion of the Premises is located in an “area of special flood hazard,” as
        that term is defined in the regulations of the Federal Insurance Administration,
        Department of Housing and Urban Development, under the National Flood Insurance
        Act of 1968, as amended (24 CFR § 1909.1) or Borrower has obtained the flood
        insurance required by Section 3.01(a)(vi) hereof. The Premises either does
        not
        lie in a 100 year flood plain that has been identified by the Secretary of
        Housing and Urban Development or any other Governmental Authority or, if
        it
        does, Borrower has obtained the flood insurance required by Section 3.01(a)(vi)
        hereof.

      
        
          
          

        

        
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      (e) Completion;
        Encroachment.
        All
        Improvements necessary for the efficient use and operation of the Premises,
        including, without limitation, all Improvements which were included for purposes
        of determining the appraised value of the Property in the Appraisal, have
        been
        completed and none of said Improvements lie outside the boundaries and building
        restriction lines of the Premises. Except as set forth in the title insurance
        policy insuring the lien of this Security Instrument, no improvements on
        adjoining properties encroach upon the Premises.

       

      (f) Separate
        Lot.
        The
        Premises are taxed separately without regard to any other real estate and
        constitute a legally subdivided lot under all applicable Legal Requirements
        (or,
        if not subdivided, no subdivision or platting of the Premises is required
        under
        applicable Legal Requirements), and for all purposes may be mortgaged,
        encumbered, conveyed or otherwise dealt with as an independent parcel. Except
        as
        previously disclosed in writing to Lender, the Property does not benefit
        from
        any tax abatement or exemption.

       

      (g) Use.
        To the
        best of Borrower’s knowledge, the existence of all Improvements, the present use
        and operation thereof and the access of the Premises and the Improvements
        to all
        of the utilities and other items referred to in paragraph (k) below are in
        compliance in all material respects with all Leases affecting the Property
        and
        all applicable Legal Requirements, including, without limitation, Environmental
        Statutes, Development Laws and Use Requirements. Borrower has not received
        any
        notice from any Governmental Authority alleging any uncured violation relating
        to the Property of any applicable Legal Requirements.

       

      (h) Licenses
        and Permits.
        Borrower currently holds and will continue to hold all certificates of
        occupancy, licenses, registrations, permits, consents, franchises and approvals
        of any Governmental Authority or any other Person which are material for
        the
        lawful occupancy and operation of the Realty or which are material to the
        ownership or operation of the Property or the conduct of Borrower’s business.
        All such certificates of occupancy, licenses, registrations, permits, consents,
        franchises and approvals are current and in full force and effect.

       

      (i) Environmental
        Matters.
        Borrower has received and reviewed the Environmental Report and has no reason
        to
        believe that the Environmental Report contains any untrue statement of a
        material fact or omits to state a material fact necessary to make the statements
        contained therein or herein, in light of the circumstances under which such
        statements were made, not misleading.

       

      (j) Property
        Proceedings.
        Other
        than as previously disclosed in writing by Borrower to Lender, there are
        no
        actions, suits or proceedings pending or, to Borrower’s knowledge, threatened in
        any court or before any Governmental Authority or arbitration board or tribunal
        (i) relating to (A) the zoning of the Premises or any part thereof, (B) any
        certificates of occupancy, licenses, registrations, permits, consents or
        approvals issued with respect to the Property or any part thereof, (C) the
        condemnation of the Property or any part thereof, or (D) the condemnation
        or
        relocation of any roadways abutting the Premises required for access or the
        denial or limitation of access to the Premises or any part thereof from any
        point of access to the Premises, (ii) asserting that (A) any such zoning,
        certificates of occupancy, licenses, registrations, permits, consents and/or
        approvals do not permit the operation of any material portion of the Realty
        as
        presently being conducted, (B) any material improvements located on the Property
        or any part thereof cannot be located thereon or operated with their intended
        use or (C) the operation of the Property or any part thereof is in violation
        in
        any material respect of any Environmental Statutes, Development Laws or other
        Legal Requirements or Space Leases or Property Agreements or (iii) which
        might
        (A) affect the validity or priority of any Loan Document or (B) have a Material
        Adverse Effect.

      
        
          
          

        

        
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      (k) Utilities.
        The
        Premises has rights of access to water, gas and/or electrical supply, storm
        and
        sanitary sewerage facilities, other required public utilities (with respect
        to
        each of the aforementioned items, by means of either a direct connection
        to the
        source of such utilities or through connections available on publicly dedicated
        roadways directly abutting the Premises or through permanent insurable easements
        benefiting the Premises), fire and police protection, parking, and means
        of
        direct access between the Premises and public highways over recognized curb
        cuts
        (or such access to public highways is through private roadways which may
        be used
        for ingress and egress pursuant to permanent insurable easements).

       

      (l) Mechanics’
        Liens.
        The
        Property is free and clear of any mechanics’ liens or liens in the nature
        thereof, and no rights are outstanding that under law could give rise to
        any
        such liens, any of which liens are or may be prior to, or equal with, the
        lien
        of this Security Instrument, except those which are insured against by the
        title
        insurance policy insuring the lien of this Security Instrument. No stop notices
        have been served with respect to any work, labor or materials furnished to
        or
        for the benefit of the Property or any portion thereof, and no disputes
        currently exist with respect to any of such matters.

       

      (m) Title
        Insurance.
        Lender
        has received a lenders’ commitment to issue a title insurance policy insuring
        this Security Instrument as a first lien on the Realty subject only to Permitted
        Encumbrances.

       

      (n) Insurance.
        The
        Property is insured in accordance with the requirements set forth in Article
        III
        hereof.

       

      (o) Space
        Leases.

       

      (i) Borrower
        has delivered a true, correct and complete schedule of all Space Leases as
        of
        the date hereof, which accurately and completely sets forth in all material
        respects, for each such Space Lease, the following (collectively, the “Rent
        Roll”): the name and address of the tenant with the lease expiration date,
        extension and renewal options; the base rent and percentage rent payable;
        all
        additional rent and pass through obligations; and the security deposit held
        thereunder and the location of such deposit

       

      (ii) Each
        Space Lease constitutes the legal, valid and binding obligation of Borrower
        and,
        to the knowledge of Borrower, is enforceable against the tenant thereof.
        Except
        as set forth on the Rent Roll or in any estoppel certificate delivered to
        Lender, no default exists, or with the passing of time or the giving of notice
        would exist, (A) under any Major Space Lease or (B) under any other Space
        Leases
        which would, in the aggregate, have a Material Adverse Effect.

       

      (iii) Except
        as
        disclosed to Lender, no tenant under any Space Lease has, as of the date
        hereof,
        paid Rent more than thirty (30) days in advance, and the Rents under such
        Space
        Leases have not been waived, released, or otherwise discharged or
        compromised.

      
        
          
          

        

        
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      (iv) Except
        as
        set forth on the Rent Roll or previously disclosed in writing to Lender,
        all
        material work to be performed by Borrower under the Space Leases has been
        substantially performed, all contributions to be made by Borrower to the
        tenants
        thereunder have been made except for any held-back amounts, and all other
        conditions precedent to each such tenant’s obligations thereunder have been
        satisfied.

       

      (v) Except
        as
        previously disclosed to Lender in writing or in the Space Leases provided
        to
        Lender, there are no options to terminate any Space Lease.

       

      (vi) Except
        as
        previously disclosed in writing to Lender, each tenant under a Major Space
        Lease
        has entered into occupancy of the demised premises to the extent required
        under
        the terms of its Major Space Lease, and each such tenant is open and conducting
        business with the public in the demised premises. Except as previously disclosed
        in writing to Lender, to the best knowledge of Borrower, after due inquiry,
        each
        tenant under a Lease other than a Major Space Lease has entered into occupancy
        of its demised premises under its Lease to the extent required under the
        terms
        of its Lease and each such tenant is open and conducting business with the
        public in the demised premises.

       

      (vii) Borrower
        has delivered to Lender true, correct and complete copies of all Space Leases
        described in the Rent Roll.

       

      (viii) Each
        Space Lease is in full force and effect and (except as disclosed on the Rent
        Roll or in any estoppel certificate delivered to Lender) has not been assigned,
        modified, supplemented or amended in any way.

       

      (ix) Except
        as
        set forth on the Rent Roll, each tenant under each Space Lease is free from
        bankruptcy, reorganization or arrangement proceedings or a general assignment
        for the benefit of creditors.

       

      (x) No
        Space
        Lease provides any party with the right to obtain a lien or encumbrance upon
        the
        Property superior to the lien of this Security Instrument or to subject to
        the
        Property to any mechanics lien. 

       

      (p) Property
        Agreements.

       

      (i) Borrower
        has delivered to Lender true, correct and complete copies of all Property
        Agreements.

       

      (ii) No
        Property Agreement provides any party with the right to obtain a lien or
        encumbrance upon the Property superior to the lien of this Security
        Instrument.

       

      (iii) To
        the
        best of Borrower’s knowledge, no default exists or with the passing of time or
        the giving of notice or both would exist under any Property Agreement which
        would, individually or in the aggregate, have a Material Adverse
        Effect.

      
        
          
          

        

        
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      (iv) Borrower
        has not received or given any written communication which alleges that a
        default
        exists or, with the giving of notice or the lapse of time, or both, would
        exist
        under the provisions of any Property Agreement.

       

      (v) No
        condition exists whereby Borrower or any future owner of the Property may
        be
        required to purchase any other parcel of land which is subject to any Property
        Agreement or which gives any Person a right to purchase, or right of first
        refusal with respect to, the Property.

       

      (vi) To
        the
        best knowledge of Borrower, no offset or any right of offset exists respecting
        continued contributions to be made by any party to any Property Agreement
        except
        as expressly set forth therein. Except as previously disclosed to Lender
        in
        writing, no material exclusions or restrictions on the utilization, leasing
        or
        improvement of the Property (including non-compete agreements) exists in
        any
        Property Agreement.

       

      (vii) All
        “pre-opening” requirements contained in all Property Agreements (including, but
        not limited to, all off-site and on-site construction requirements), if any,
        have been fulfilled, and, to the best of Borrower’s knowledge, no condition now
        exists whereby any party to any such Property Agreement could refuse to honor
        its obligations thereunder.

       

      (viii) Except
        as
        previously disclosed in writing to Lender, all work, if any, to be performed
        by
        Borrower under each of the Property Agreements has been substantially performed,
        all contributions to be made by Borrower to any party to such Property
        Agreements have been made, and all other material conditions to such party’s
        obligations thereunder have been satisfied.

       

      (q) Personal
        Property.
        Borrower has delivered to Lender a true, correct and complete schedule of
        all
        personal property, if any, owned by Borrower and located upon the Realty
        or used
        in connection with the use or operation of the Realty and Borrower represents
        that it has good and marketable title to all such personal property, free
        and
        clear of any liens or security interests, except for liens and security
        interests created under the Loan Documents, liens and security interests
        otherwise disclosed to Lender in writing and disclosed in the title insurance
        policy insuring the lien of this Security Instrument, and liens and security
        interests which describe the equipment and other personal property owned
        by
        tenants.

       

      (r) Leasing
        Brokerage and Management Fees.
        Except
        as previously disclosed to Lender in writing, there are no brokerage fees
        or
        commissions payable by Borrower with respect to the leasing of space at the
        Property and there are no management fees payable by Borrower with respect
        to
        the management of the Property.

       

      (s) Security
        Deposits.
        All
        security deposits with respect to the Property on the date hereof have been
        transferred to the Security Deposit Account on the date hereof, and Borrower
        is
        in compliance with all Legal Requirements relating to such security deposits
        as
        to which failure to comply might, individually or in the aggregate, have
        a
        Material Adverse Effect. 

      
        
          
          

        

        
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      (t) Appraisal.
        Borrower has no knowledge that any of the facts or assumptions on which the
        Appraisal was based are false or incomplete in any material respect and has
        no
        information that would reasonably suggest that the fair market value determined
        in the Appraisal does not reflect the actual fair market value of the
        Property.

       

      (u) Representations
        Generally.
        No
        representation, warranty or statement of fact made by or on behalf of Borrower
        in this Security Instrument or in any certificate, document or schedule
        furnished to Lender pursuant hereto, contains any untrue statement of a material
        fact or omits to state any material fact necessary to make statements contained
        therein or herein not misleading (which may be to Borrower’s best knowledge
        where so provided herein). There are no facts presently known to Borrower
        which
        have not been disclosed to Lender which would, individually or in the aggregate,
        have a Material Adverse Effect nor as far as Borrower can foresee might,
        individually or in the aggregate, have a Material Adverse Effect.

       

      Section
        2.06. Removal
        of Lien. (a)
        Borrower shall, at its expense, maintain this Security Instrument as a first
        lien on the Property and shall keep the Property free and clear of all liens
        and
        encumbrances of any kind and nature other than the Permitted Encumbrances.
        Borrower shall, within thirty (30) days following receipt of notice of the
        filing thereof, promptly discharge of record, by bond or otherwise, any such
        liens and, promptly upon request by Lender, shall deliver to Lender evidence
        reasonably satisfactory to Lender of the discharge thereof. 

       

      (b) Without
        limitation to the provisions of Section 2.06(a) hereof, Borrower shall (i)
        pay,
        from time to time when the same shall become due, all claims and demands
        of
        mechanics, materialmen, laborers, and others which, if unpaid, might result
        in,
        or permit the creation of, a lien on the Property or any part thereof, (ii)
        cause to be removed of record (by payment or posting of bond or settlement
        or
        otherwise) any mechanics’, materialmens’, laborers’ or other lien on the
        Property, or any part thereof, or on the revenues, rents, issues, income
        or
        profit arising therefrom, and (iii) in general, do or cause to be done, without
        expense to Lender, everything reasonably necessary to preserve in full the
        lien
        of this Security Instrument. If Borrower fails to comply with the requirements
        of this Section 2.06(b), then, upon ten (10) Business Days’ prior notice to
        Borrower, Lender may, but shall not be obligated to, pay any such lien, and
        Borrower shall, within ten (10) Business Days after Lender’s demand therefor,
        reimburse Lender for all sums so expended, together with interest thereon
        at the
        Default Rate from the date advanced, all of which shall be deemed part of
        the
        Debt. Nothing contained herein shall be deemed a consent or request of Lender,
        express or implied, by inference or otherwise, to the performance of any
        alteration, repair or other work by any contractor, subcontractor or laborer
        or
        the furnishing of any materials by any materialmen in connection
        therewith.

       

      (c) Notwithstanding
        the foregoing, Borrower may contest any lien (other than a lien relating
        to
        non-payment of Impositions, the contest of which shall be governed by Section
        4.04 hereof) of the type set forth in subparagraph (b)(ii) of this Section
        2.06
        provided that, following prior notice to Lender (i) Borrower is contesting
        the
        validity of such lien with due diligence and in good faith and by appropriate
        proceedings, without cost or expense to Lender or any of its agents, employees,
        officers, or directors, (ii) Borrower shall preclude the collection of, or
        other
        realization upon, any contested amount from the Property or any revenues
        from or
        interest in the Property, (iii) neither the Property nor any part thereof
        nor
        interest therein, shall be in any danger of being sold, forfeited or lost
        by
        reason of such contest by Borrower, (iv) such contest by Borrower shall not
        affect the ownership, use or occupancy of the Property, (v) such contest
        by
        Borrower shall not subject Lender or Borrower to the risk of civil or criminal
        liability (other than the civil liability of Borrower for the amount of the
        lien
        in question), (vi) such lien is subordinate to the lien of this Security
        Instrument, (vii) Borrower has not consented to such lien, (viii) Borrower
        has
        given Lender prompt notice of the filing of such lien and, upon request by
        Lender from time to time, notice of the status of such contest by Borrower
        and/or confirmation of the continuing satisfaction of the conditions set
        forth
        in this Section 2.06(c), (ix) Borrower shall promptly pay the obligation
        secured
        by such lien upon a final determination of Borrower’s liability therefor, and
        (x) Borrower shall deliver written notice of its intent to contest such lien
        at
        least thirty (30) days before commencing such contest and also shall deliver
        to
        Lender, if requested by Lender, cash, a bond or other security acceptable
        to
        Lender equal to 125% of the contested amount pursuant to collateral arrangements
        reasonably satisfactory to Lender. 

      
        
          
          

        

        
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      Section
        2.07. Cost
        of Defending and Upholding this Security Instrument Lien.
        If any
        action or proceeding is commenced to which Lender is made a party relating
        to
        the Loan Documents and/or the Property or Lender’s interest therein or in which
        it becomes necessary to defend or uphold the lien of this Security Instrument
        or
        any other Loan Document, Borrower shall, on demand, reimburse Lender for
        all
        expenses (including, without limitation, reasonable attorneys’ fees and
        disbursements) incurred by Lender, as applicable, in connection therewith,
        and
        such sum, together with interest thereon at the Default Rate from and after
        such
        demand until fully paid, shall constitute a part of the Debt.

       

      Section
        2.08. Use
        of
        the Property.
        Borrower will use, or cause to be used, the Property for such use as is
        permitted pursuant to applicable Legal Requirements including, without
        limitation, under the certificate of occupancy applicable to the Property,
        and
        which is required by the Loan Documents. Borrower shall not suffer or permit
        the
        Property or any portion thereof to be used by the public, any tenant, or
        any
        Person not subject to a Lease, in a manner as is reasonably likely to impair
        Borrower’s title to the Property, or in such manner as may give rise to a claim
        or claims of adverse usage or adverse possession by the public, or of implied
        dedication of the Property or any part thereof.

       

      Section
        2.09. Financial
        Reports.
        (a)
        Borrower
        will keep and maintain or will cause to be kept and maintained on a Fiscal
        Year
        basis, in accordance with GAAP (or such other accounting basis reasonably
        acceptable to Lender) consistently applied, proper and accurate books, tax
        returns, records and accounts reflecting (i) all of the financial affairs
        of
        Borrower and (ii) all items of income and expense in connection with the
        operation of the Property or in connection with any services, equipment or
        furnishings provided in connection with the operation thereof, whether such
        income or expense may be realized by Borrower or by any other Person whatsoever,
        excepting lessees unrelated to and unaffiliated with Borrower who have leased
        from Borrower portions of the Premises for the purpose of occupying the same.
        Lender shall have the right from time to time at all times during normal
        business hours upon reasonable advance notice to examine such books, tax
        returns, records and accounts at the office of Borrower or other Person
        maintaining such books, tax returns, records and accounts and to make such
        copies or extracts thereof as Lender shall desire. During the continuance
        of an
        Event of Default, Borrower shall pay any costs and expenses incurred by Lender
        to examine Borrower’s and Guarantor’s accounting records with respect to the
        Property, as Lender shall determine to be necessary or appropriate in the
        protection of Lender’s interest.

       

      (b) Borrower
        will furnish Lender (i) annually, within one hundred twenty (120) days following
        the end of each Fiscal Year of Borrower and (ii) on a quarterly basis, within
        thirty (30) days following the end of each fiscal quarter of Borrower, with
        a
        complete copy of Borrower’s financial statement consistently applied covering
        (A) all of the financial affairs of Borrower and (B) the operation of the
        Property for such Fiscal Year or fiscal quarters, as applicable, and containing
        a statement of revenues and expenses, a statement of assets and liabilities
        and
        a statement of Borrower’s equity. Each annual financial statement shall be
        prepared by an Independent certified public accountant that is reasonably
        acceptable to Lender in accordance with GAAP (or such other accounting basis
        reasonably acceptable to Lender). Upon request made in connection with a
        Securitization of the Loan or after the occurrence of an Event of Default,
        such
        annual financial statements shall be audited by an Independent certified
        public
        accountant that is reasonably acceptable to Lender in accordance with GAAP.
        Together with the financial statements required to be furnished pursuant
        to this
        Section 2.09(b), Borrower shall furnish to Lender (A) an Officer’s Certificate
        certifying as of the date thereof (1) that the financial statements accurately
        represent the results of operations and financial condition of Borrower and
        the
        Property all in accordance with GAAP (or such other accounting basis reasonably
        acceptable to Lender) consistently applied, and (2) whether, to the best
        of such
        officer’s knowledge, there exists a Default under the Note or any other Loan
        Document executed and delivered by Borrower, and if such event or circumstance
        exists, the nature thereof, the period of time it has existed and the action
        then being taken to remedy such event or circumstance and (B) together with
        the
        financial statements delivered pursuant to Section 2.09(b)(ii) above, a
        statement showing (1) Pro-Forma Net Operating Income at the end of the most
        recent fiscal quarter (subject to verification by Lender in its reasonable
        discretion) and (2) the calculation of Debt Service Coverage.

      
        
          
          

        

        
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      (c) Borrower
        will furnish Lender monthly, within twenty (20) days following the end of
        each
        month, with (i) a true, complete and correct cash flow statement with respect
        to
        the Property in the form attached hereto as Exhibit C and made a part hereof,
        showing (A) all cash receipts of any kind whatsoever and all cash payments
        and
        disbursements, (B) year-to-date summaries of such cash receipts, payments
        and
        disbursements, and (C) during an O&M Operative Period, Pro Forma Net
        Operating Income (subject to the verification by Lender) and a calculation
        of
        Debt Service Coverage, (ii) a certification of Manager stating that such
        cash
        flow statement is true, complete and correct and a list of all litigation
        and
        proceedings affecting Borrower or the Property in which the amount involved
        is
        $250,000 or more, if not covered by insurance (or $2,500,000 or more whether
        or
        not covered by insurance), (iii) the sales per square foot for each lessee
        under
        the Space Leases to the extent such information is required to be delivered
        by
        such lessees and (iv) an occupancy report for the Property.

       

      (d) Borrower
        will furnish Lender monthly, within twenty (20) days following the end of
        each
        month, with a certification of Manager stating that all Operating Expenses
        with
        respect to the Property which had accrued as of the last day of the month
        preceding the delivery of the cash flow statement referred to in clause (c)
        above have been fully paid or otherwise reserved for by Manager (any such
        certification or any certification furnished by a Manager pursuant to clause
        (c)
        above, a “Manager
        Certification”).

       

      (e) Borrower
        will furnish Lender annually, within twenty (20) days following the end of
        each
        year and within twenty (20) days following receipt of such request therefor,
        with a true, complete and correct rent roll for the Property, including a
        list
        of which tenants are in default under their respective Leases, dated as of
        the
        date of Lender’s request, identifying each tenant, the monthly rent and
        additional rent, if any, payable by such tenant, the expiration date of such
        tenant’s Lease, the security deposit, if any, held by Borrower under the Lease,
        the space covered by the Lease, each tenant that has filed a bankruptcy,
        insolvency, or reorganization proceeding since delivery of the last such
        rent
        roll, the sales per square foot of each tenant, to the extent reported by
        tenants under the terms of the Leases and the arrearages for such tenant,
        if
        any, and such rent roll shall be accompanied by an Officer’s Certificate, dated
        as of the date of the delivery of such rent roll, certifying that such rent
        roll
        is true, correct and complete in all material respects as of its
        date.

       

      (f) Borrower
        shall furnish to Lender, within thirty (30) days after Lender’s request
        therefor, with such further detailed information with respect to the operation
        of the Property and the financial affairs of Borrower as may be reasonably
        requested by Lender.

       

      (g) Borrower
        shall cause Manager to furnish to Lender, within twenty (20) days following
        the
        end of each month, a schedule of tenant security deposits showing any activity
        in the Security Deposit Account for such month, together with a certification
        of
        Manager as to the balance in such Security Deposit Account and that such
        tenant
        security deposits are being held in accordance with all Legal
        Requirements.

       

      (h) Borrower
        will furnish Lender annually, within ninety (90) days after the end of each
        Fiscal Year, with a report setting forth (i) the Net Operating Income for
        such
        Fiscal Year, (ii) the average occupancy rate of the Property during such
        Fiscal
        Year, and (iii) the capital repairs, replacements and improvements performed
        at
        the Property during such Fiscal Year and the aggregate Recurring Replacement
        Expenditures made in connection therewith.

      
        
          
          

        

        
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      (i) Borrower
        shall furnish to Lender annually, within thirty (30) days of filing its
        respective tax return, a copy of such tax return and either a copy of the
        tax
        return of Guarantor within such thirty (30) day period or within ninety (90)
        days after the end of each Fiscal Year, a certificate from an Independent
        certified public accountant indicating the net worth of the
        Guarantor.

       

      (j) Borrower
        shall submit to Lender for Lender’s written approval an Annual Budget not later
        than sixty (60) days prior to the commencement of each Fiscal Year or, with
        respect to the Fiscal Year in which the Closing Date occurs, within sixty
        (60)
        days of the Closing Date, in form satisfactory to Lender setting forth in
        reasonable detail budgeted monthly operating income and monthly operating
        capital and other expenses for the Property. Each Annual Budget shall contain,
        among other things, limitations on management fees, third party service fees,
        and other expenses as Borrower may reasonably determine. Lender shall have
        the
        right to approve such Annual Budget which approval shall not be unreasonably
        withheld, and in the event that Lender objects to the proposed Annual Budget
        submitted by Borrower, Lender shall advise Borrower of such objections within
        ten (10) Business Days after receipt thereof (and deliver to Borrower a
        reasonably detailed description of such objections) and Borrower shall, within
        four (4) Business Days after receipt of notice of any such objections, revise
        such Annual Budget and resubmit the same to Lender. Lender shall advise Borrower
        of any objections to such revised Annual Budget within seven (7) Business
        Days
        after receipt thereof (and deliver to Borrower a reasonably detailed description
        of such objections) and Borrower shall revise the same in accordance with
        the
        process described herein until Lender approves an Annual Budget, provided,
        however, that if Lender shall not advise Borrower of its objections to any
        proposed Annual Budget within the applicable time period set forth in this
        Section, then such proposed Annual Budget shall be deemed approved by Lender.
        Until such time that Lender approves a proposed Annual Budget, the most recently
        Approved Annual Budget shall apply; provided that, such Approved Annual Budget
        shall be adjusted to reflect actual increases in Basic Carrying Costs and
        utilities expenses. In the event that Borrower must incur an Extraordinary
        Expense, then Borrower shall promptly deliver to Lender a reasonably detailed
        explanation of such proposed Extraordinary Expense for Lender’s approval, which
        approval may be granted or denied in Lender’s reasonable discretion; provided,
        however, so long as no O&M Operative Period is then in existence, no
        approval from Lender shall be required if (i) a single Extraordinary Expense
        is
        equal to or less than five percent (5%) of the amount set forth in the Approved
        Annual Budget for expenses related to such Extraordinary Expense, or (ii)
        if no
        sum was budgeted for such expense in the Approved Annual Budget, the
        Extraordinary Expense is less than or equal to five percent (5%) of the Approved
        Annual Budget, provided that all Extraordinary Expenses in any Fiscal Year
        do
        not exceed five percent (5%) of the Approved Annual Budget. The Approved
        Annual
        Budget shall be prepared for the Property.

       

      (k) In
        the
        event that Borrower fails to deliver any of the financial statements, reports
        or
        other information required to be delivered to Lender pursuant to this Section
        2.09 on or prior to their due dates, if any such failure shall continue for
        fifteen (15) days following notice thereof from Lender, without waiving any
        default arising out of such failure, Borrower shall pay to Lender on each
        Payment Date for each month or portion thereof that any such financial
        statement, report or other information remains undelivered, an administrative
        fee in the amount of Two Thousand Five Hundred Dollars ($2,500) and (ii)
        if
        Borrower has not delivered any such reports within five (5) Business Days
        of
        Lender’s giving an additional notice to Borrower requesting the missing
        financial statement, report or other information, an O&M Operative Period
        shall be deemed to have commenced. Borrower agrees that such administrative
        fee
        (i) is a fair and reasonable fee necessary to compensate Lender for its
        additional administrative costs and increased costs relating to Borrower’s
        failure to deliver the aforementioned statements, reports or other items
        as and
        when required hereunder and (ii) is not a penalty.

      
        
          
          

        

        
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      Section
        2.10. Litigation.
        Borrower will give prompt written notice to Lender of any litigation or
        governmental proceedings pending or threatened (in writing) against Borrower
        which might have a Material Adverse Effect.

       

      Section
        2.11. Updates
        of Representations.
        Borrower shall deliver to Lender within ten (10) Business Days of the request
        of
        Lender an Officer’s Certificate updating all of the representations and
        warranties contained in this Security Instrument and the other Loan Documents
        and certifying that all of the representations and warranties contained in
        this
        Security Instrument and the other Loan Documents, as updated pursuant to
        such
        Officer’s Certificate, are true, accurate and complete as of the date of such
        Officer’s Certificate or shall set forth the exceptions to representations
        and/or warranties in reasonable detail, as applicable, and, upon Lender’s
        request for further information with respect to such exceptions, shall provide
        Lender such additional information as Lender may reasonably request.
        Notwithstanding the foregoing, provided that no Event of Default has occurred
        and is continuing, Borrower shall not be required to deliver the foregoing
        Officer’s Certificate more than two (2) times in any Loan Year. 

       

      ARTICLE
        III: INSURANCE
        AND CASUALTY RESTORATION

       

      Section
        3.01. Insurance
        Coverage.
        Borrower shall, at its expense, maintain the following insurance coverages
        with
        respect to the Property during the term of this Security
        Instrument:

       

      (a) (i) Insurance
        against loss or damage by fire, casualty and other hazards included in an
        “all-risk” coverage endorsement or its equivalent, with such endorsements as
        Lender may from time to time reasonably require and which are customarily
        required by Institutional Lenders of similar properties similarly situated,
        including, without limitation, if the Property constitutes a legal
        non-conforming use, an ordinance of law coverage endorsement which contains
        “Demolition Cost”, “Loss Due to Operation of Law” and “Increased Cost of
        Construction” coverages, covering the Property in an amount not less than the
        greater of (A) 100% of the insurable replacement value of the Property
        (exclusive of the Premises and footings and foundations) and (B) such other
        amount as is necessary to prevent any reduction in such policy by reason
        of and
        to prevent Borrower, Lender or any other insured thereunder from being deemed
        to
        be a co-insurer. Not less frequently than once every three (3) years, Borrower,
        at its option, shall either (A) have the Appraisal updated or obtain a new
        appraisal of the Property, (B) have a valuation of the Property made by or
        for
        its insurance carrier conducted by an appraiser experienced in valuing
        properties of similar type to that of the Property which are in the geographical
        area in which the Property is located or (C) provide such other evidence
        as
        will, in Lender’s sole judgment, enable Lender to determine whether there shall
        have been an increase in the insurable value of the Property and Borrower
        shall
        deliver such updated Appraisal, new appraisal, insurance valuation or other
        evidence acceptable to Lender, as the case may be, and, if such updated
        Appraisal, new appraisal, insurance valuation, or other evidence acceptable
        to
        Lender reflects an increase in the insurable value of the Property, the amount
        of insurance required hereunder shall be increased accordingly and Borrower
        shall deliver evidence satisfactory to Lender that such policy has been so
        increased.

      
        
          
          

        

        
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      (ii) Commercial
        general liability insurance against claims for personal and bodily injury
        and/or
        death to one or more persons or property damage, occurring on, in or about
        the
        Property (including the adjoining streets, sidewalks and passageways therein)
        in
        such amounts as Lender may from time to time reasonably require (but in no
        event
        shall Lender’s requirements be increased more frequently than once during each
        twelve (12) month period) and which are customarily required by Institutional
        Lenders for similar properties similarly situated, but not less than $1,000,000
        per occurrence and $2,000,000 general aggregate on a per location basis and,
        in
        addition thereto, not less than $75,000,000 excess and/or umbrella liability
        insurance shall be maintained for any and all claims. 

       

      (iii) Business
        interruption, rent loss or other similar insurance (A) with loss payable
        to
        Lender, (B) covering all risks required to be covered by the insurance provided
        for in Section 3.01(a)(i) hereof and (C) in an amount not less than 90% of
        the
        projected fixed or base rent plus percentage rent for the succeeding eighteen
        (18) month period based on an occupancy rate of 100%. Such insurance coverage
        shall provide a six (6) month extended period of indemnity. The amount of
        such
        insurance shall be determined upon the execution of this Security Instrument,
        and not more frequently than once each calendar year thereafter based on
        Borrower’s reasonable estimate of projected fixed or base rent plus percentage
        rent, from the Property for the next succeeding eighteen (18) months. In
        the
        event the Property shall be damaged or destroyed, Borrower shall and hereby
        does
        assign to Lender all payment of claims under the policies of such insurance,
        and
        all amounts payable thereunder, and all net amounts, shall be collected by
        Lender under such policies and shall be applied in accordance with this Security
        Instrument; provided, however, that nothing herein contained shall be deemed
        to
        relieve Borrower of its obligations to timely pay all amounts due under the
        Loan
        Documents.

       

      (iv) Intentionally
        Deleted.

       

      (v) Insurance
        against loss or damages from (A) leakage of sprinkler systems and (B) explosion
        of steam boilers, air conditioning equipment, pressure vessels or similar
        apparatus now or hereafter installed at the Property, in such amounts as
        Lender
        may from time to time reasonably require and which are then customarily required
        by Institutional Lenders of similar properties similarly situated.

       

      (vi) Flood
        insurance in an amount equal to the full insurable value of the Property
        or the
        maximum amount available, whichever is less, if the Improvements are located
        in
        an area designated by the Secretary of Housing and Urban Development as being
        “an area of special flood hazard” under the National Flood Insurance Program
        (i.e.,
        having
        a one percent or greater chance of flooding), and if flood insurance is
        available under the National Flood Insurance Act.

       

      (vii) Worker’s
        compensation insurance or other similar insurance which may be required by
        Governmental Authorities or Legal Requirements.

      
        
          
          

        

        
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      (viii) Intentionally
        Deleted.

       

      (ix) Insurance
        against damage resulting from acts of terrorism, or an insurance policy without
        an exclusion for damages resulting from terrorism, on terms consistent with
        the
        commercial property insurance policy required under subsections (i), (ii)
        and
        (iii) above.

       

      (x) Such
        other insurance as may from time to time be required by Lender and which
        is then
        customarily required by Institutional Lenders for similar properties similarly
        situated, against other insurable hazards, including, but not limited to,
        malicious mischief, vandalism, mold, spores or fungus, sinkhole and mine
        subsidence, acts of terrorism, windstorm and/or earthquake, due regard to
        be
        given to the size and type of the Premises, Improvements, Fixtures and Equipment
        and their location, construction and use. Additionally, Borrower shall carry
        such insurance coverage as Lender may from time to time require if the failure
        to carry such insurance may result in a downgrade, qualification or withdrawal
        of any class of securities issued in connection with a Securitization or,
        if the
        Loan is not yet part of a Securitization, would result in an increase in
        the
        subordination levels of any class of securities anticipated to be issued
        in
        connection with a proposed Securitization.

       

      (b) Borrower
        shall cause any Manager of the Property to maintain fidelity insurance in
        an
        amount equal to $5,000,000 or such lesser amount as Lender shall
        approve.

       

      Section
        3.02. Policy
        Terms.
        (a)
All
        insurance required by this Article III shall be in the form (other than with
        respect to Sections 3.01(a)(vi) and (vii) above when insurance in those two
        sub-sections is placed with a governmental agency or instrumentality on such
        agency’s forms) and amount and with deductibles as, from time to time, shall be
        reasonably acceptable to Lender, under valid and enforceable policies issued
        by
        financially responsible insurers authorized to do business in the State where
        the Property is located, with a general policyholder’s service rating of not
        less than A- and a financial rating of not less than X as rated in the most
        currently available Best’s Insurance Reports (or the equivalent, if such rating
        system shall hereafter be altered or replaced) and shall have a claims paying
        ability rating and/or financial strength rating, as applicable, of not less
        than
“AA” (or its equivalent), or such lower claims paying ability rating and/or
        financial strength rating, as applicable, as Lender shall, in its sole and
        absolute discretion, consent to, from a Rating Agency (one of which after
        a
        Securitization in which Standard & Poor’s rates any securities issued in
        connection with such Securitization, shall be Standard & Poor’s). Originals
        or certified copies of all insurance policies shall be delivered to and held
        by
        Lender. All such policies (except policies for worker’s compensation) shall name
        Lender, its successors and/or assigns as an additional named insured, shall
        provide for loss payable to Lender, its successors and/or assigns and shall
        contain (or have attached): (i) standard “non-contributory mortgagee”
endorsement or its equivalent relating, inter alia,
        to
        recovery by Lender notwithstanding the negligent or willful acts or omissions
        of
        Borrower; (ii) a waiver of subrogation endorsement as to Lender; (iii) an
        endorsement indicating that neither Lender nor Borrower shall be or be deemed
        to
        be a co-insurer with respect to any casualty risk insured by such policies
        and
        shall provide for a deductible per loss of an amount not more than the lesser
        of
        (x) that which is customarily maintained by owners of similar properties
        similarly situated and (y) five percent (5%) of the Adjusted Net Cash Flow,
        and
        (iv) a provision that such policies shall not be canceled, terminated, denied
        renewal or amended, including, without limitation, any amendment reducing
        the
        scope or limits of coverage, without at least thirty (30) days’ prior written
        notice to Lender in each instance. Not less than thirty (30) days prior to
        the
        expiration dates of the insurance policies obtained pursuant to this Security
        Instrument, originals or certified copies of renewals of such policies (or
        certificates evidencing such renewals) bearing notations evidencing the payment
        of premiums or accompanied by other reasonable evidence of such payment (which
        premiums shall not be paid by Borrower through or by any financing arrangement
        which would entitle an insurer to terminate a policy) shall be delivered
        by
        Borrower to Lender. Borrower shall not carry separate insurance, concurrent
        in
        kind or form or contributing in the event of loss, with any insurance required
        under this Article III.

      
        
          
          

        

        
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      (b) If
        Borrower fails to maintain and deliver to Lender the original policies or
        certificates of insurance required by this Security Instrument, or if there
        are
        insufficient funds in the Basic Carrying Costs Escrow Account to pay the
        premiums for same, Lender may, at its option, procure such insurance, and
        Borrower shall pay, or as the case may be, reimburse Lender for, all premiums
        thereon promptly, upon demand by Lender, with interest thereon at the Default
        Rate from the date paid by Lender to the date of repayment and such sum shall
        constitute a part of the Debt.

       

      (c) Borrower
        shall notify Lender of the renewal premium of each insurance policy and Lender
        shall be entitled to pay such amount on behalf of Borrower from the Basic
        Carrying Costs Escrow Account. With respect to insurance policies which require
        periodic payments (i.e., monthly or quarterly) of premiums, Lender shall
        be
        entitled to pay such amounts fifteen (15) days (or such lesser number of
        days as
        Lender shall determine) prior to the respective due dates of such
        installments.

       

      (d) The
        insurance required by this Security Instrument may, at the option of Borrower,
        be effected by blanket and/or umbrella policies issued to Borrower covering
        the
        Property provided that, in each case, the policies otherwise comply with
        the
        provisions of this Security Instrument and allocate to the Property, from
        time
        to time (but in no event less than once a year), the coverage specified by
        this
        Security Instrument, without possibility of reduction or coinsurance by reason
        of, or damage to, any other property (real or personal) named therein. If
        the
        insurance required by this Security Instrument shall be effected by any such
        blanket or umbrella policies, Borrower shall furnish to Lender (i) original
        policies or certified copies thereof, or an original certificate of insurance
        together with reasonable access to the original of such policy to review
        such
        policy’s coverage of the Property, with schedules attached thereto showing the
        amount of the insurance provided under such policies applicable to the Property
        and (ii) an Officer’s Certificate setting forth (A) the number of properties
        covered by such policy, (B) the location by city (if available, otherwise,
        county) and state of the properties, (C) the average square footage of the
        properties, (D) a brief description of the typical construction type included
        in
        the blanket policy and (E) such other information as Lender may reasonably
        request.

       

      Section
        3.03. Assignment
        of Policies.
        (a)
Borrower
        hereby assigns to Lender the proceeds of all insurance (other than worker’s
        compensation and liability insurance) obtained pursuant to this Security
        Instrument, all of which proceeds shall be payable to Lender as collateral
        and
        further security for the payment of the Debt and the performance of the
        Borrowers’ obligations hereunder and under the other Loan Documents, and
        Borrower hereby authorizes and directs the issuer of any such insurance to
        make
        payment of such proceeds directly to Lender. Except as otherwise expressly
        provided in Section 3.04 or elsewhere in this Article III, Lender shall have
        the
        option, in its discretion, and without regard to the adequacy of its security,
        to apply all or any part of the proceeds it may receive pursuant to this
        Article
        in such manner as Lender may elect to any one or more of the following: (i)
        the
        payment of the Debt, whether or not then due, in any proportion or priority
        as
        Lender, in its discretion, may elect, (ii) the repair or restoration of the
        Property, (iii) the cure of any Event of Default or (iv) the reimbursement
        of
        the costs and expenses of Lender incurred pursuant to the terms hereof in
        connection with the recovery of the Insurance Proceeds. Nothing herein contained
        shall be deemed to excuse Borrower from repairing or maintaining the Property
        as
        provided in this Security Instrument or restoring all damage or destruction
        to
        the Property, regardless of the sufficiency of the Insurance Proceeds, and
        the
        application or release by Lender of any Insurance Proceeds shall not cure
        or
        waive any Default or notice of Default.

      
        
          
          

        

        
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      (b) In
        the
        event of the foreclosure of this Security Instrument or any other transfer
        of
        title or assignment of all or any part of the Property in extinguishment,
        in
        whole or in part, of the Debt, all right, title and interest of Borrower
        in and
        to all policies of insurance required by this Security Instrument shall inure
        to
        the benefit of the successor in interest to Borrower or the purchaser of
        the
        Property to the extent that such policies are assignable or transferable.
        If,
        prior to the receipt by Lender of any proceeds, the Property or any portion
        thereof shall have been sold on foreclosure of this Security Instrument or
        by
        deed in lieu thereof or otherwise, or any claim under such insurance policy
        arising during the term of this Security Instrument is not paid until after
        the
        extinguishment of the Debt, and Lender shall not have received the entire
        amount
        of the Debt outstanding at the time of such extinguishment, whether or not
        a
        deficiency judgment on this Security Instrument shall have been sought or
        recovered or denied, then, the proceeds of any such insurance to the extent
        of
        the amount of the Debt not so received, shall be paid to and be the property
        of
        Lender, together with interest thereon at the Default Rate, and the reasonable
        attorney’s fees, costs and disbursements incurred by Lender in connection with
        the collection of the proceeds which shall be paid to Lender and Borrower
        hereby
        assigns, transfers and sets over to Lender all of Borrower’s right, title and
        interest in and to such proceeds. Notwithstanding any provisions of this
        Security Instrument to the contrary, Lender shall not be deemed to be a trustee
        or other fiduciary with respect to its receipt of any such proceeds, which
        may
        be commingled with any other monies of Lender; provided, however, that Lender
        shall use such proceeds for the purposes and in the manner permitted by this
        Security Instrument. Any proceeds deposited with Lender shall be held by
        Lender
        in an interest-bearing account, but Lender makes no representation or warranty
        as to the rate or amount of interest, if any, which may accrue on such deposit
        and shall have no liability in connection therewith. Interest accrued, if
        any,
        on the proceeds shall be deemed to constitute a part of the proceeds for
        purposes of this Security Instrument. The provisions of this Section 3.03(b)
        shall survive the termination of this Security Instrument by foreclosure,
        deed
        in lieu thereof or otherwise as a consequence of the exercise of the rights
        and
        remedies of Lender hereunder after a Default.

       

      Section
        3.04. Casualty
        Restoration.
        (a)
        (i)
        In the
        event of any damage to or destruction of the Property, Borrower shall give
        prompt written notice to Lender (which notice shall set forth Borrower’s good
        faith estimate of the cost of repairing or restoring such damage or destruction,
        or if Borrower cannot reasonably estimate the anticipated cost of restoration,
        Borrower shall nonetheless give Lender prompt notice of the occurrence of
        such
        damage or destruction, and will diligently proceed to obtain estimates to
        enable
        Borrower to quantify the anticipated cost and time required for such
        restoration, whereupon Borrower shall promptly notify Lender of such good
        faith
        estimate) and, provided that restoration does not violate any Legal
        Requirements, Borrower shall promptly commence and diligently prosecute to
        completion the repair, restoration or rebuilding of the Property so damaged
        or
        destroyed to a condition such that the Property shall be at least equal in
        value
        to that immediately prior to the damage to the extent practicable, in full
        compliance with all Legal Requirements and the provisions of all Leases,
        and in
        accordance with Section 3.04(b) below. Such repair, restoration or rebuilding
        of
        the Property are sometimes hereinafter collectively referred to as the
“Work”.

      
        
          
          

        

        
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      (ii) Notwithstanding
        the foregoing provisions of this Section 3.04, upon the occurrence of any
        damage
        to or destruction of the Property, provided that such damage or destruction
        is
        not a Substantial Casualty, if in Lender’s reasonable judgment the cost of
        repair of or restoration to the Property required as a result of any damage
        or
        destruction is less than $1,000,000 in the aggregate and the Work can be
        completed in less than one hundred eighty (180) days (but in no event beyond
        the
        date which is six (6) months prior to the Maturity Date), then Lender, shall
        permit Borrower to apply for and receive the Insurance Proceeds directly
        from
        the insurer (and Lender shall advise the insurer to pay over such Insurance
        Proceeds directly to Borrower), to the extent required to pay for any such
        Work,
        with any excess thereof to be retained by Borrower.

       

      (iii) Subject
        to Section 3.04(a)(iv), Lender shall apply any Insurance Proceeds which it
        may
        receive towards the Work in accordance with Section 3.04(b) and the other
        applicable sections of this Article III.

       

      (iv) If
        (A) an
        Event of Default shall have occurred and is continuing, (B) Lender is not
        reasonably satisfied that the Debt Service Coverage, after substantial
        completion of the Work, will be at least equal to the Required Debt Service
        Coverage, (C) more than thirty percent (30%) of the reasonably estimated
        fair
        market value of the Property is damaged or destroyed, (D) Lender is not
        reasonably satisfied that the Work can be completed six (6) months prior
        to
        Maturity or (E) Lender is not reasonably satisfied that Leases covering at
        least
        75% of the rentable square footage for the Property (immediately prior to
        such
        damage or destruction) will not be terminated due to the casualty during
        and
        following the restoration, or (F) Lender is not reasonably satisfied that
        the
        Work can be completed within twelve (12) months of the damage to or destruction
        of the Property (each, a “Substantial
        Casualty”),
        Lender shall have the option, in its sole discretion to apply any Insurance
        Proceeds it may receive pursuant to this Security Instrument (less any
        reasonable cost to Lender of recovering and paying out such proceeds incurred
        pursuant to the terms hereof and not otherwise reimbursed to Lender, including,
        without limitation, reasonable attorneys’ fees and expenses) to the payment of
        the Debt, without any prepayment fee or charge of any kind, or to allow such
        proceeds to be used for the Work pursuant to the terms and subject to the
        conditions of Section 3.04(b) hereof and the other applicable sections of
        this
        Article III.

       

      (v) In
        the
        event that Lender elects or is obligated hereunder to allow Insurance Proceeds
        to be used for the Work, any excess proceeds remaining after completion of
        such
        Work shall be applied to the payment of the Debt without any prepayment fee
        or
        charge of any kind.

       

      (b) If
        any
        Condemnation Proceeds in accordance with Section 6.01(a), or any Insurance
        Proceeds in accordance with Section 3.04(a), are to be applied to the repair,
        restoration or rebuilding of the Property, then such proceeds shall be deposited
        into a segregated interest-bearing bank account at the Bank, which shall
        be an
        Eligible Account, held by Lender and shall be paid out from time to time
        to
        Borrower as the Work progresses (less any reasonable cost to Lender of
        recovering and paying out such proceeds, including, without limitation,
        reasonable attorneys’ fees and costs allocable to inspecting the Work and the
        plans and specifications therefor), subject to Section 5.13 hereof and to
        all of
        the following conditions:

      
        
          
          

        

        
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      (i) An
        Independent architect or engineer selected by Borrower and reasonably acceptable
        to Lender (an “Architect”
or
        “Engineer”)
        or a
        Person otherwise reasonably acceptable to Lender, shall have delivered to
        Lender
        a certificate estimating the cost of completing the Work, and, if the amount
        set
        forth therein is more than the sum of the amount of Insurance Proceeds then
        being held by Lender in connection with a casualty and amounts agreed to
        be paid
        as part of a final settlement under the insurance policy upon or before
        completion of the Work, Borrower shall have delivered to Lender (A) cash
        collateral in an amount equal to such excess, or (B) an unconditional,
        irrevocable, clean sight draft letter of credit, in form, substance and issued
        by a bank reasonably acceptable to Lender, in the amount of such excess and
        draws on such letter of credit shall be made by Lender to make payments pursuant
        to this Article III following exhaustion of the Insurance Proceeds therefor
        or
        (C) a completion bond in form, substance and issued by a surety company
        reasonably acceptable to Lender.

       

      (ii) If
        the
        cost of the Work is reasonably estimated by an Architect or Engineer in a
        certification reasonably acceptable to Lender to be equal to or exceed five
        percent (5%) of the Loan Amount, such Work shall be performed under the
        supervision of an Architect or Engineer, it being understood that the plans
        and
        specifications with respect thereto shall provide for Work so that, upon
        completion thereof, the Property shall be at least equal in replacement value
        and general utility to the Property prior to the damage or
        destruction.

       

      (iii) Each
        request for payment shall be made on not less than ten (10) days’ prior notice
        to Lender and shall be accompanied by a certificate of an Architect or Engineer,
        or, if the Work is not required to be supervised by an Architect or Engineer,
        by
        an Officer’s Certificate stating (A) that payment is for Work completed or
        materials delivered in compliance with the plans and specifications, if required
        under clause (ii) above, (B) that the sum requested is required to reimburse
        Borrower for payments by Borrower to date, or is due to the contractors,
        subcontractors, materialmen, laborers, engineers, architects or other Persons
        rendering services or materials for the Work (giving a brief description
        of such
        services and materials), and that when added to all sums previously paid
        out by
        Lender does not exceed the value of the Work done to the date of such
        certificate, (C) if the sum requested is to cover payment relating to repair
        and
        restoration of personal property required or relating to the Property, that
        title to the personal property items covered by the request for payment is
        vested in Borrower (unless Borrower is lessee of such personal property),
        and
        (D) that the Insurance Proceeds and other amounts deposited by Borrower held
        by
        Lender after such payment is equal to or more than the estimated remaining
        cost
        to complete such Work; provided, however, that if such certificate is given
        by
        an Architect or Engineer, such Architect or Engineer shall certify as to
        clause
        (A) above, and such Officer’s Certificate shall certify as to the remaining
        clauses above, and provided, further, that Lender shall not be obligated
        to
        disburse such funds if Lender determines, in Lender’s reasonable discretion,
        that Borrower shall not be in compliance with this Section 3.04(b).
        Additionally, each request for payment shall contain a statement signed by
        Borrower stating that the requested payment is for Work satisfactorily done
        to
        date or for materials for the Work.

      
        
          
          

        

        
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      (iv) Each
        request for payment shall be accompanied by waivers of lien, in customary
        form
        and substance, covering that part of the Work for which payment or reimbursement
        is being requested and, if required by Lender, a search prepared by a title
        company or licensed abstractor, or by other evidence satisfactory to Lender
        that
        there has not been filed with respect to the Property any mechanic’s or other
        lien or instrument for retention of title relating to any part of the Work
        not
        discharged of record. Additionally, as to any personal property covered by
        the
        request for payment, Lender shall be furnished with evidence of having incurred
        a payment obligation therefor and such further evidence reasonably satisfactory
        to assure Lender that UCC filings therefor provide a valid first lien on
        the
        personal property.

       

      (v) Lender
        shall have the right to inspect the Work at all reasonable times upon reasonable
        prior notice and may condition any disbursement of Insurance Proceeds upon
        satisfactory compliance by Borrower with the provisions hereof. Neither the
        approval by Lender of any required plans and specifications for the Work
        nor the
        inspection by Lender of the Work shall make Lender responsible for the
        preparation of such plans and specifications, or the compliance of such plans
        and specifications of the Work, with any applicable law, regulation, ordinance,
        covenant or agreement.

       

      (vi) Insurance
        Proceeds shall not be disbursed more frequently than once every thirty (30)
        days.

       

      (vii) Until
        such time as the Work has been substantially completed, Lender shall not
        be
        obligated to disburse up to ten percent (10%) of the cost of the Work (the
        “Retention
        Amount”)
        to
        Borrower. Upon substantial completion of the Work, Borrower shall send notice
        thereof to Lender and, subject to the conditions of Section 3.04(b)(i)-(iv),
        Lender shall disburse one-half of the Retention Amount to Borrower; provided,
        however, that the remaining one-half of the Retention Amount shall be disbursed
        to Borrower when Lender shall have received copies of any and all final
        certificates of occupancy or other certificates, licenses and permits required
        for the ownership, occupancy and operation of the Property in accordance
        with
        all Legal Requirements. Borrower hereby covenants to diligently seek to obtain
        any such certificates, licenses and permits. Notwithstanding the foregoing,
        Lender will release the portion of the Retention Amount being held with respect
        to any contractor, subcontractor or materialman engaged in the Work as of
        the
        date upon which the Architect or Engineer certifies to Lender that the
        contractor, subcontractor or materialman has satisfactorily completed all
        work
        and has supplied all materials in accordance with the provisions of the
        contractor’s, subcontractor’s or materialman’s contract, provided, (A) the
        contractor, subcontractor or materialman delivers the lien waivers and evidence
        of payment in full of all sums due to the contractor, subcontractor or
        materialman as may be reasonably requested by Lender or by the title company
        issuing the Lender’s title policy and (B) if required by Lender, the release of
        any such portion of the Retention Amount shall be approved by the surety
        company, if any, which has issued a payment or performance bond with respect
        to
        the contractor, subcontractor or materialman.

      
        
          
          

        

        
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      (viii) Upon
        failure on the part of Borrower promptly to commence the Work as provided
        for
        herein or to proceed diligently and continuously to completion of the Work,
        subject to Force Majeure, not to exceed sixty (60) days, which failure shall
        continue after notice for thirty (30) days, Lender may apply any Insurance
        Proceeds or Condemnation Proceeds it then or thereafter holds to the payment
        of
        the Debt in accordance with the provisions of the Note; provided, however,
        that
        Lender shall be entitled to apply at any time all or any portion of the
        Insurance Proceeds or Condemnation Proceeds it then holds to the extent
        necessary to cure any Event of Default.

       

      (c) If
        Borrower (i) within ninety (90) days after the occurrence of any damage to
        the
        Property or any portion thereof (or such shorter period as may be required
        under
        any Major Space Lease) shall fail to submit to Lender for approval plans
        and
        specifications for the Work (approved by the Architect and by all Governmental
        Authorities whose approval is required), (ii) after any such plans and
        specifications are approved by all Governmental Authorities, the Architect
        and
        Lender, shall fail to promptly commence such Work as provided for herein
        or
        (iii) shall fail to diligently prosecute such Work to completion, then, in
        addition to all other rights available hereunder, at law or in equity, Lender,
        or any receiver of the Property or any portion thereof, upon five (5) days’
prior notice to Borrower (except in the event of emergency in which case
        no
        notice shall be required), may (but shall have no obligation to) perform
        or
        cause to be performed such Work, and may take such other steps as it reasonably
        deems advisable. Borrower hereby waives, for Borrower, any claim, other than
        for
        gross negligence or willful misconduct, against Lender and any receiver arising
        out of any act or omission of Lender or such receiver pursuant hereto, and
        Lender may apply all or any portion of the Insurance Proceeds (without the
        need
        to fulfill any other requirements of this Section 3.04) to reimburse Lender
        and
        such receiver, for all reasonable costs not reimbursed to Lender or such
        receiver upon demand together with interest thereon at the Default Rate from
        the
        date such amounts are advanced until the same are paid to Lender or the
        receiver.

       

      (d) Subject
        to Section 3.04(a)(ii) above, Borrower hereby irrevocably appoints Lender
        as its
        attorney-in-fact, coupled with an interest, to collect and receive any Insurance
        Proceeds paid with respect to any portion of the Property or the insurance
        policies required to be maintained hereunder, and to endorse any checks,
        drafts
        or other instruments representing any Insurance Proceeds whether payable
        by
        reason of loss thereunder or otherwise.

       

      Section
        3.05. Compliance
        with Insurance Requirements.
        Borrower promptly shall comply with, and shall cause the Property to comply
        with, all Insurance Requirements, even if such compliance requires structural
        changes or improvements or would result in interference with the use or
        enjoyment of the Property or any portion thereof provided Borrower shall
        have a
        right to contest in good faith and with diligence such Insurance Requirements
        provided (a) no Event of Default shall be continuing during such contest
        and
        such contest shall not subject the Property or any portion thereof to any
        lien
        or affect the priority of the lien of this Security Instrument, (b) failure
        to
        comply with such Insurance Requirements will not subject Lender or any of
        its
        agents, employees, officers or directors to any civil or criminal liability,
        (c)
        such contest will not cause any reduction in insurance coverage, (d) such
        contest shall not affect the ownership, use or occupancy of the Property,
        (e)
        the Property or any part thereof or any interest therein shall not be in
        any
        danger of being sold, forfeited or lost by reason of such contest by Borrower,
        (f) Borrower has given Lender prompt notice of such contest and, upon request
        by
        Lender from time to time, notice of the status of such contest by Borrower
        and/or information of the continuing satisfaction of the conditions set forth
        in
        clauses (a) through (e) of this Section 3.05, (g) upon a final determination
        of
        such contest, Borrower shall promptly comply with the requirements thereof,
        and
        (h) prior to and during such contest, Borrower shall furnish to Lender security
        satisfactory to Lender, in its reasonable discretion, against loss or injury
        by
        reason of such contest or the non-compliance with such Insurance Requirement
        (and if such security is cash, Lender shall deposit the same in an
        interest-bearing account and interest accrued thereon, if any, shall be deemed
        to constitute a part of such security for purposes of this Security Instrument,
        but Lender (i) makes no representation or warranty as to the rate or amount
        of
        interest, if any, which may accrue thereon and shall have no liability in
        connection therewith and (ii) shall not be deemed to be a trustee or fiduciary
        with respect to its receipt of any such security and any such security may
        be
        commingled with other monies of Lender). Upon completion of any contest,
        Lender
        shall return the security , if any, deposited with Lender pursuant to clause
        (h)
        of this Section 3.05. If Borrower shall use the Property or any portion thereof
        in any manner which could permit the insurer to cancel any insurance required
        to
        be provided hereunder, Borrower immediately shall obtain a substitute policy
        which shall satisfy the requirements of this Security Instrument and which
        shall
        be effective on or prior to the date on which any such other insurance policy
        shall be canceled. Borrower shall not by any action or omission invalidate
        any
        insurance policy required to be carried hereunder unless such policy is replaced
        as aforesaid, or materially increase the premiums on any such policy above
        the
        normal premium charged for such policy. Borrower shall cooperate with Lender
        in
        obtaining for Lender the benefits of any Insurance Proceeds lawfully or
        equitably payable to Lender in connection with the transaction contemplated
        hereby.

      
        
          
          

        

        
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      Section
        3.06. Event
        of Default During Restoration.
        Notwithstanding anything to the contrary contained in this Security Instrument
        including, without limitation, the provisions of this Article III, if, at
        the
        time of any casualty affecting the Property or any part thereof, or at any
        time
        during any Work, or at any time that Lender is holding or is entitled to
        receive
        any Insurance Proceeds pursuant to this Security Instrument, a Default exists
        and is continuing (whether or not it constitutes an Event of Default), Lender
        shall then have no obligation to make such proceeds available for Work and
        Lender shall have the right and option, to be exercised in its sole and absolute
        discretion and election, with respect to the Insurance Proceeds, either to
        retain and apply such proceeds in reimbursement for the actual costs, fees
        and
        expenses incurred by Lender in accordance with the terms hereof in connection
        with the adjustment of the loss and any balance toward payment of the Debt
        in
        such priority and proportions as Lender, in its sole discretion, shall deem
        proper, or towards the Work, upon such terms and conditions as Lender shall
        determine, or to cure such Default, or to any one or more of the foregoing
        as
        Lender, in its sole and absolute discretion, may determine. If Lender shall
        receive and retain such Insurance Proceeds, the lien of this Security Instrument
        shall be reduced only by the amount thereof received, after reimbursement
        to
        Lender of expenses of collection, and actually applied by Lender in reduction
        of
        the principal sum payable under the Note in accordance with the
        Note.

       

      Section
        3.07. Application
        of Proceeds to Debt Reduction.
        (a)
        No
        damage to the Property, or any part thereof, by fire or other casualty
        whatsoever, whether such damage be partial or total, shall relieve Borrower
        from
        its liability to pay in full the Debt and to perform its obligations under
        this
        Security Instrument and the other Loan Documents.

       

      (b) If
        any
        Insurance Proceeds are applied to reduce the Debt, Lender shall apply the
        same
        in accordance with the provisions of the Note. 

       

      ARTICLE
        IV: IMPOSITIONS

       

      Section
        4.01. Payment
        of Impositions, Utilities and Taxes, etc.
        (a)
Borrower
        shall pay or cause to be paid all Impositions prior to the date upon which
        any
        fine, penalty, interest or cost for nonpayment is imposed, and furnish to
        Lender, upon request, receipted bills of the appropriate taxing authority
        or
        other documentation reasonably satisfactory to Lender evidencing the payment
        thereof. If Borrower shall fail to pay any Imposition in accordance with
        this
        Section and is not contesting or causing a contesting of such Imposition
        in
        accordance with Section 4.04 hereof, or if there are insufficient funds in
        the
        Basic Carrying Costs Escrow Account to pay any Imposition, Lender shall have
        the
        right, but shall not be obligated, to pay that Imposition, and Borrower shall
        repay to Lender, on demand, any amount paid by Lender, with interest thereon
        at
        the Default Rate from the date of the advance thereof to the date of repayment,
        and such amount shall constitute a portion of the Debt secured by this Security
        Instrument.

       

      (b) Borrower
        shall, prior to the date upon which any fine, penalty, interest or cost for
        the
        nonpayment is imposed, pay or cause to be paid all charges for electricity,
        power, gas, water and other services and utilities in connection with the
        Property, and shall, upon request, deliver to Lender receipts or other
        documentation reasonably satisfactory to Lender evidencing payment thereof.
        If
        Borrower shall fail to pay any amount required to be paid by Borrower pursuant
        to this Section 4.01 and is not contesting such charges in accordance with
        Section 4.04 hereof, Lender shall have the right, but shall not be obligated,
        to
        pay that amount, and Borrower will repay to Lender, on demand, any amount
        paid
        by Lender with interest thereon at the Default Rate from the date of the
        advance
        thereof to the date of repayment, and such amount shall constitute a portion
        of
        the Debt secured by this Security Instrument.

      
        
          
          

        

        
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      (c) Borrower
        shall pay all taxes, charges, filing, registration and recording fees, excises
        and levies imposed upon Lender by reason of or in connection with its ownership
        of any Loan Document or any other instrument related thereto, or resulting
        from
        the execution, delivery and recording of, or the lien created by, or the
        obligation evidenced by, any of them, other than income, franchise and other
        similar taxes imposed on Lender and shall pay all corporate stamp taxes,
        if any,
        and other taxes, required to be paid on the Loan Documents. If Borrower shall
        fail to make any such payment within ten (10) days after written notice thereof
        from Lender, Lender shall have the right, but shall not be obligated, to
        pay the
        amount due, and Borrower shall reimburse Lender therefor, on demand, with
        interest thereon at the Default Rate from the date of the advance thereof
        to the
        date of repayment, and such amount shall constitute a portion of the Debt
        secured by this Security Instrument.

       

      Section
        4.02. Deduction
        from Value.
        In the
        event of the passage after the date of this Security Instrument of any Legal
        Requirement deducting from the value of the Property for the purpose of
        taxation, any lien thereon or changing in any way the Legal Requirements
        now in
        force for the taxation of this Security Instrument and/or the Debt for federal,
        state or local purposes, or the manner of the operation of any such taxes
        so as
        to adversely affect the interest of Lender, or impose any tax or other charge
        on
        any Loan Document, then Borrower will pay such tax, with interest and penalties
        thereon, if any, within the statutory period; provided, however, such tax
        payments shall not include such taxes incurred more than ninety (90) days
        prior
        to the date Borrower receives Lender’s notice of payment. In the event the
        payment of such tax or interest and penalties by Borrower would be unlawful,
        or
        taxable to Lender or unenforceable or provide the basis for a defense of
        usury,
        then in any such event, Lender shall have the option, by written notice of
        not
        less than sixty (60) days, to declare the Debt immediately due and payable,
        with
        no prepayment fee or charge of any kind.

       

      Section
        4.03. No
        Joint Assessment.
        Borrower shall not consent to or initiate the joint assessment of the Premises
        or the Improvements (a) with any other real property constituting a separate
        tax
        lot and Borrower represents and covenants that the Premises and the Improvements
        are and shall remain a separate tax lot or (b) with any portion of the Property
        which may be deemed to constitute personal property, or any other procedure
        whereby the lien of any taxes which may be levied against such personal property
        shall be assessed or levied or charged to the Property as a single
        lien.

       

      Section
        4.04. Right
        to Contest.
        Borrower shall have the right, after prior notice to Lender, at its sole
        expense, to contest by appropriate legal proceedings diligently conducted
        in
        good faith, without cost or expense to Lender or any of its agents, employees,
        officers or directors, the validity, amount or application of any Imposition
        or
        any charge described in Section 4.01(b), provided that (a) no Default or
        Event
        of Default shall exist during such proceedings and such contest shall not
        (unless Borrower shall comply with clause (d) of this Section 4.04) subject
        the
        Property or any portion thereof to any lien or affect the priority of the
        lien
        of this Security Instrument, (b) failure to pay such Imposition or charge
        will
        not subject Lender or any of its agents, employees, officers or directors
        to any
        civil or criminal liability, (c) the contest suspends enforcement of the
        Imposition or charge (unless Borrower first pays the Imposition or charge),
        (d)
        prior to and during such contest, Borrower shall furnish to Lender security
        satisfactory to Lender, in its reasonable discretion, against loss or injury
        by
        reason of such contest or the non-payment of such Imposition or charge (and
        if
        such security is cash, Lender may deposit the same in an interest-bearing
        account and interest accrued thereon, if any, shall be deemed to constitute
        a
        part of such security for purposes of this Security Instrument, but Lender
        (i)
        makes no representation or warranty as to the rate or amount of interest,
        if
        any, which may accrue thereon and shall have no liability in connection
        therewith and (ii) shall not be deemed to be a trustee or fiduciary with
        respect
        to its receipt of any such security and any such security may be commingled
        with
        other monies of Lender), (e) such contest shall not affect the ownership,
        use or
        occupancy of the Property, (f) the Property or any part thereof or any interest
        therein shall not be in any danger of being sold, forfeited or lost by reason
        of
        such contest by Borrower, (g) Borrower has given Lender notice of the
        commencement of such contest and upon request by Lender, from time to time,
        notice of the status of such contest by Borrower and/or confirmation of the
        continuing satisfaction of clauses (a) through (f) of this Section 4.04,
        and (h)
        upon a final determination of such contest, Borrower shall promptly comply
        with
        the requirements thereof. Upon completion of any contest, Borrower shall
        immediately pay the amount due, if any, and deliver to Lender proof of the
        completion of the contest and payment of the amount due, if any, following
        which
        Lender shall return the security, if any, deposited with Lender pursuant
        to
        clause (d) of this Section 4.04. Borrower shall not pay any Imposition in
        installments unless permitted by applicable Legal Requirements, and shall,
        upon
        the request of Lender, deliver copies of all notices and bills relating to
        any
        Imposition or other charge covered by this Article IV to
        Lender.

      
        
          
          

        

        
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      Section
        4.05. No
        Credits on Account of the Debt.
        Borrower will not claim or demand or be entitled to any credit or credits
        on
        account of the Debt for any part of the Impositions assessed against the
        Property or any part thereof and no deduction shall otherwise be made or
        claimed
        from the taxable value of the Property, or any part thereof, by reason of
        this
        Security Instrument or the Debt. In the event such claim, credit or deduction
        shall be required by Legal Requirements, Lender shall have the option, by
        written notice of not less than forty-five (45) days, to declare the Debt
        immediately due and payable, and Borrower hereby agrees to pay such amounts
        not
        later than forty-five (45) days after such notice.

       

      Section
        4.06. Documentary
        Stamps.
        If, at
        any time, the United States of America, any State or Commonwealth thereof
        or any
        subdivision of any such State shall require revenue or other stamps to be
        affixed to the Note, this Security Instrument or any other Loan Document,
        or
        impose any other tax or charges on the same, Borrower will pay the same,
        with
        interest and penalties thereon, if any.

      

       

      ARTICLE
        V: CENTRAL
        CASH MANAGEMENT

       

      Section
        5.01. Cash
        Flow.
        Borrower hereby acknowledges and agrees that (i) the Rents (which for the
        purposes of this Section 5.01 shall not include security deposits from tenants
        under Leases held by Borrower and not applied towards Rent) derived from
        the
        Property and (ii) Loss Proceeds (other than Loss Proceeds that Lender has
        elected to apply to reduce the Debt in accordance with the terms of Article
        III
        hereof) shall be utilized (a) to fund the Basic Carrying Costs Sub-Account,
        (b)
        to pay all amounts to become due and payable under the Note by funding the
        Debt
        Service Payment Sub-Account, (c) to fund the Recurring Replacement Reserve
        Sub-Account, (d) to fund the Reletting Reserve Sub-Account, (e) to fund the
        Operation and Maintenance Expense Sub-Account, and (f) to fund the Curtailment
        Reserve Sub-Account, all to the extent provided for herein. Borrower shall
        collect all security deposits from tenants under valid Leases, which shall
        be
        held by Borrower, in accordance with applicable law and in a segregated demand
        deposit bank account at such commercial or savings bank or banks as may be
        reasonably satisfactory to Lender (the “Security
        Deposit Account”).
        Borrower shall notify Lender of any security deposits held as letters of
        credit
        and, upon Lender’s request, such letters of credit shall be promptly delivered
        to Lender. Borrower shall have no right to withdraw funds from the Security
        Deposit Account; provided
        that,
        prior to the occurrence of an Event of Default, Borrower may withdraw funds
        from
        the Security Deposit Account to refund or apply security deposits as required
        by
        the Leases or by applicable Legal Requirements. During the continuance of
        an
        Event of Default, all withdrawals from the Security Deposit Account must
        be
        approved by Lender. Borrower shall cause all Rent which is due and payable
        to
        Borrower pursuant to the terms of the Leases (other than security deposits
        under
        valid Leases which are held in the Security Deposit Account) to be paid through
        automated clearing house funds (“ACH”),
        a
        check drawn on an account in a bank located in the continental United States
        which is a member of the New York Clearing House Association or by Federal
        wire
        directly to the Rent Account. Borrower shall give each tenant under a Lease
        an
        irrevocable direction in the form of Exhibit E attached hereto and made a
        part
        hereof to deliver all rent payments made by tenants and other payments
        constituting Rent directly to the Rent Account and shall deliver copies of
        such
        letters to Lender, together with an Officer’s Certificate certifying that such
        letters were delivered to each tenant under the Leases within five (5) days
        of
        the Closing Date. Notwithstanding the foregoing, if any Rent is received
        by
        Borrower or Manager, then (a) such amounts shall be held in trust for the
        benefit, and as the property, of Lender, (b) such amounts shall not be
        commingled with any other funds or property of Borrower or Manager and (c)
        Borrower or Manager shall deposit such amounts in the Rent Account within
        one
        (1) Business Day of receipt. Borrower shall, or shall cause Manager to, give
        to
        the bank in which the Rent Account is located an irrevocable written
        instruction, in form and substance acceptable to, and acknowledged by, Lender,
        that all funds deposited in the Rent Account shall be automatically transferred
        through ACH or by Federal wire to the Central Account prior to 2:00 p.m.
        (New
        York City time) on each Business Day. Upon execution of any Space Lease after
        the Closing Date, Borrower shall deliver to Lender a copy of the irrevocable
        direction letter referred to above, the receipt of which has been acknowledged
        by the tenant under such Space Lease. Lender may elect to change the financial
        institution in which the Central Account or the Rent Account shall be
        maintained; however,
        Lender
        shall give Borrower and the bank in which the Rent Account is located not
        fewer
        than ten (10) Business Days’ prior notice of such change. Neither Borrower nor
        Manager shall change the bank in which the Rent Account is located or the
        Rent
        Account without the prior written consent of Lender. All fees and charges
        of the
        bank in which the Central Account is located shall be paid by
        Borrower.

      
        
          
          

        

        
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      Section
        5.02. Establishment
        of Accounts.
        Lender
        has established the Escrow Accounts and the Central Account in the name of
        Lender as secured party and Borrower has established the Central Account
        in the
        joint names of Lender, as secured party, and Borrower. The Central Account,
        the
        Rent Account and the Escrow Accounts shall be under the sole dominion and
        control of Lender and funds held therein shall not constitute trust funds.
        Borrower hereby irrevocably directs and authorizes Lender to withdraw funds
        from
        the Central Account, the Rent Account and the Escrow Accounts, all in accordance
        with the terms and conditions of this Security Instrument. Borrower shall
        have
        no right of withdrawal in respect of the Central Account, the Rent Account
        or
        the Escrow Accounts. Each transfer of funds to be made hereunder shall be
        made
        only to the extent that funds are on deposit in the Central Account, the
        Rent
        Account or the affected Sub-Account or Escrow Account, and Lender shall have
        no
        responsibility to make additional funds available in the event that funds
        on
        deposit are insufficient. The Central Account shall contain the Basic Carrying
        Costs Sub-Account, the Debt Service Payment Sub-Account, the Recurring
        Replacement Reserve Sub-Account, the Reletting Reserve Sub-Account, the
        Operation and Maintenance Expense Sub-Account and the Curtailment Reserve
        Sub-Account, each of which accounts shall be Eligible Accounts or book entry
        sub-accounts of an Eligible Account (each a “Sub-Account”
and
        collectively, the “Sub-Accounts”)
        to
        which certain funds shall be allocated and from which disbursements shall
        be
        made pursuant to the terms of this Security Instrument. In addition, on the
        date
        hereof, the Central Account shall also contain (w) a Sub-Account entitled
        the
“Engineering Escrow Sub Account”, which shall be funded by Borrower at Closing
        with the Initial Engineering Deposit set forth on Exhibit B attached hereto
        (representing the sum applicable to the Required Engineering Work described
        in
        Section 5.12 below and on Exhibit D attached hereto, (x) a Sub-Account entitled
        the Holdback Reserve Sub-Account which shall be funded by Borrower at closing
        with the Initial Holdback Reserve Deposit, (y) a Sub-Account entitled the
        Debt
        Service Reserve Sub-Account which shall be funded by Borrower at closing
        with
        the Initial Debt Service Reserve Deposit and (z) a Sub-Account entitled the
        Yield Maintenance Reserve Sub-Account which shall be funded by Borrower at
        closing with the Initial Yield Maintenance Reserve Deposit. Sums held in
        the
        Escrow Accounts may be commingled with other monies held by Lender.

       

      Section
        5.03. Permitted
        Investments.
        All
        sums deposited into the Curtailment Reserve Escrow Account, the Holdback
        Reserve
        Escrow Account, the Recurring Replacement Reserve Sub-Account, the Reletting
        Reserve Escrow Account and the Operation and Maintenance Expense Escrow Account
        shall be held in an interest bearing account but Borrower acknowledges that
        Lender makes no representation or warranty as to the rate of return. Lender
        shall not have any liability for any loss in investments of funds in the
        Curtailment Reserve Escrow Account, the Recurring Replacement Reserve
        Sub-Account, the Reletting Reserve Escrow Account, the Holdback Reserve Escrow
        Account and the Operation and Maintenance Expense Escrow Account and no such
        loss shall affect Borrower’s obligation to fund, or liability for funding, the
        Central Account and each Sub-Account and Escrow Account, as the case may
        be.
        Borrower agrees that Lender shall include all such earnings on the Curtailment
        Reserve Escrow Account, the Recurring Replacement Reserve Sub-Account, the
        Reletting Reserve Escrow Account, the Holdback Reserve Escrow Account and
        the
        Operation and Maintenance Expense Escrow Account as income of Borrower (and,
        if
        Borrower is a partnership, limited liability company or other pass-through
        entity, the partners, members or beneficiaries of Borrower, as the case may
        be)
        for federal and applicable state and local tax purposes. All interest paid
        or
        other earnings on funds deposited into the Recurring Replacement Reserve
        Sub-Account, the Reletting Reserve Escrow Account, the Holdback Reserve Escrow
        Account and the Operation and Maintenance Expense Escrow Account made hereunder
        shall be deposited into the Central Account and shall be allocated to the
        Curtailment Reserve Escrow Account, the Recurring Replacement Reserve
        Sub-Account, the Reletting Reserve Escrow Account, the Holdback Reserve Escrow
        Account and the Operation and Maintenance Expense Escrow Account. Borrower
        shall
        pay all costs, fees and expenses incurred in connection with the establishment
        and maintenance of, or the disbursement from, the Curtailment Reserve Escrow
        Account, the Recurring Replacement Reserve Sub-Account, the Reletting Reserve
        Escrow Account and
        the
        Operation and Maintenance Expense Escrow Account, which sums shall be due
        and
        payable by Borrower upon demand and may be deducted by Lender from amounts
        on
        deposit in the Central Account or the Escrow Accounts.

       

      
        
          
          

        

        
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      Section
        5.04. Servicing
        Fees.
        At the
        option of Lender, the Loan may be serviced by a servicer (the “Servicer”)
        selected by Lender and Lender may delegate all or any portion of its
        responsibilities under this Security Instrument to the Servicer. Provided
        that
        no Default has occurred and is continuing, Borrower shall have no obligation
        to
        reimburse Lender for servicing fees incurred in connection with the ordinary,
        routine servicing of the Loan; provided, however, that Borrower shall reimburse
        Lender for (a) any and all costs and expenses incurred after the occurrence
        of a
        Default and (b) as otherwise provided for in this Security Instrument.
        Additionally, Borrower shall pay all reasonable servicing fees of Servicer,
        if
        any, not to exceed $500.00 per month, charged in connection with any
        disbursement of funds from the Escrow Accounts pursuant to the Servicer’s then
        standard conditions and rates.

       

      Section
        5.05. Monthly
        Funding of Sub-Accounts and Escrow Accounts.
        (a) On
        or before each Payment Date during the term of the Loan, commencing on the
        first
        (1st) Payment Date occurring after the month in which the Loan is initially
        funded, Borrower shall pay or cause to be paid to the Central Account, Basic
        Carrying Costs Monthly Installment, the Required Debt Service Payment, the
        Recurring Replacement Monthly Installment, the Reletting Reserve Monthly
        Installment and all sums required to be deposited in the Operation and
        Maintenance Expense Sub-Account and the Curtailment Reserve Sub-Account,
        if any,
        pursuant to clauses (i) through (viii) of this Section 5.05(a) and all funds
        transferred or deposited into the Central Account shall be allocated among
        the
        Sub-Accounts as follows and in the following priority: 

       

      (i) first,
        to
        the Basic Carrying Costs Sub-Account, until an amount equal to the Basic
        Carrying Costs Monthly Installment for such Current Month has been allocated
        to
        the Basic Carrying Costs Sub-Account;

       

      (ii) second,
        to the Debt Service Payment Sub-Account, until an amount equal to the Required
        Debt Service Payment for the Payment Date occurring in such Current Month
        has
        been allocated to the Debt Service Payment Sub-Account;

       

      (iii) third,
        to
        the Recurring Replacement Reserve Sub-Account, until an amount equal to the
        Recurring Replacement Monthly Installment for such Current Month has been
        allocated to the Recurring Replacement Reserve Sub-Account;

       

      (iv) fourth,
        to the Reletting Reserve Sub-Account, until an amount equal to the Reletting
        Reserve Monthly Installment for such Current Month has been allocated to
        the
        Reletting Reserve Sub-Account;

       

      (v) fifth,
        but only during the occurrence and continuance of an Event of Default, to
        the
        Operation and Maintenance Expense Sub-Account in an amount equal to the Cash
        Expenses, other than management fees payable to Affiliates of Borrower, for
        such
        Current Month pursuant to the related Approved Annual Budget;

       

      (vi) sixth,
        but only during the occurrence and continuance of an Event of Default, to
        the
        Operation and Maintenance Expense Sub-Account in an amount equal to the amount,
        if any, of the Net Capital Expenditures for such Current Month pursuant to
        the
        related Approved Annual Budget; 

      
        
          
          

        

        
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      (vii) seventh,
        but only during the occurrence and continuance of an Event of Default, to
        the
        Operation and Maintenance Expense Sub-Account in an amount equal to the amount,
        if any, of the Extraordinary Expenses approved by Lender for such Current
        Month;

       

      (viii) eighth,
        but only during an O&M Operative Period, the balance, if any, to the
        Curtailment Reserve Sub-Account.

       

      Provided
        that (I) no Event of Default has occurred and is continuing and (II) Lender
        has
        received the Manager Certification referred to in Section 2.09(d) hereof
        for the
        most recent period for which the same is due, Lender agrees that in each
        Current
        Month any amounts deposited into or remaining in the Central Account after
        the
        Sub-Accounts have been funded in accordance with clauses (i) through (viii)
        above with respect to the Current Month and any periods prior thereto, shall
        be
        disbursed by Lender to Borrower on the Payment Date and, to the extent that
        funds are available for such purpose, on the fifteenth and twenty-fifth day
        of
        each Current Month or, if such days are not Business Days, on the next
        succeeding Business Day in accordance with Borrower’s irrevocable written
        instruction delivered to Lender on the Closing Date. During the existence
        of an
        Event of Default, no funds held in the Central Account shall be distributed
        to
        Borrower and Lender shall have the right to apply all or any portion of the
        funds held in the Central Account or any Sub-Account or any Escrow Account
        to
        the Debt in Lender’s sole discretion.

       

      (b) On
        each
        Payment Date, (i) sums held in the Basic Carrying Costs Sub-Account shall
        be
        transferred to the Basic Carrying Costs Escrow Account, (ii) sums held in
        the
        Debt Service Payment Sub-Account, together with any amounts deposited into
        the
        Central Account that are either (x) Loss Proceeds that Lender has elected
        to
        apply to reduce the Debt in accordance with the terms of Article III hereof
        or
        (y) excess Loss Proceeds remaining after the completion of any restoration
        required hereunder, shall be transferred to Lender to be applied towards
        the
        Required Debt Service Payment, (iii) sums held in the Recurring Replacement
        Reserve Sub-Account shall be transferred to the Recurring Replacement Reserve
        Escrow Account, (iv) sums held in the Reletting Reserve Sub-Account shall
        be
        transferred to the Reletting Reserve Escrow Account, (v) sums held in the
        Operation and Maintenance Expense Sub-Account shall be transferred to the
        Operation and Maintenance Expense Escrow Account and (vi) sums held in the
        Curtailment Reserve Sub-Account shall be transferred to the Curtailment Reserve
        Escrow Account.

       

      Section
        5.06. Payment
        of Basic Carrying Costs.
        Borrower hereby agrees to pay all Basic Carrying Costs (without regard to
        the
        amount of money in the Basic Carrying Costs Sub-Account or the Basic Carrying
        Costs Escrow Account). At least ten (10) Business Days prior to the due date
        of
        any Basic Carrying Costs, and not more frequently than once each month, Borrower
        may notify Lender in writing and request that Lender pay such Basic Carrying
        Costs on behalf of Borrower on or prior to the due date thereof, and, provided
        that no Event of Default has occurred and that there are sufficient funds
        available in the Basic Carrying Costs Escrow Account, Lender shall make such
        payments out of the Basic Carrying Costs Escrow Account before same shall
        be
        delinquent. Together with each such request, Borrower shall furnish Lender
        with
        bills and all other documents necessary, as reasonably determined by Lender,
        for
        the payment of the Basic Carrying Costs which are the subject of such request.
        Borrower’s obligation to pay (or cause Lender to pay) Basic Carrying Costs
        pursuant to this Security Instrument shall include, to the extent permitted
        by
        applicable law, Impositions resulting from future changes in law which impose
        upon Lender an obligation to pay any property taxes or other Impositions
        or
        which otherwise adversely affect Lender’s interests as provided for in this
        Security Instrument.

       

      
        
          
          

        

        
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      Provided
        that no Event of Default shall have occurred, all funds deposited into the
        Basic
        Carrying Costs Escrow Account shall be held by Lender pursuant to the provisions
        of this Security Instrument and shall be applied in payment of Basic Carrying
        Costs in accordance with the terms hereof. Should an Event of Default occur,
        the
        sums on deposit in the Basic Carrying Costs Sub-Account and the Basic Carrying
        Costs Escrow Account may be applied by Lender in payment of any Basic Carrying
        Costs or may be applied to the payment of the Debt or any other charges
        affecting all or any portion of the Property as Lender in its sole discretion
        may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      Section
        5.07. Reletting
        Reserve Escrow Account.
        (a)
        Borrower hereby agrees to pay all Reletting Expenditures (without regard
        to the
        amount of money then available in the Reletting Reserve Sub-Account or the
        Reletting Reserve Escrow Account). Upon the execution of any Space Lease
        with
        respect to which Borrower is obligated to undertake or pay for any Reletting
        Expenditures, Borrower shall submit to Lender (i) an itemized line item budget
        (a “Budget”)
        reasonably acceptable to Lender outlining all of the Reletting Expenditures,
        (ii) a copy of the signed Lease for which said Reletting Expenditures relate,
        in
        each case which has an expiration date at least three (3) years after the
        commencement thereof and which is otherwise in compliance with the provisions
        of
        this Security Instrument, (iii) a copy of the plans and specifications, if
        any,
        for the proposed Reletting Expenditures and (iv) an Officer’s Certificate with
        respect to the items referred to in clauses (i) through (iii) and setting
        forth
        an anticipated completion date for the Reletting Expenditures. Thereafter,
        provided that no Event of Default has occurred and is continuing and that
        Lender
        has received a written request from Borrower for payment or reimbursement
        of any
        costs incurred in connection with any Reletting Expenditures, together with
        (i)
        unconditional lien waivers (subject only to payment), (ii) a statement from
        an
        Architect or Engineer, indicating that such portion of the Reletting
        Expenditures for which payment or reimbursement is sought has been substantially
        completed in compliance with all Legal Requirements, (iii) unless Borrower
        requests disbursement by means of check payable jointly to Borrower and the
        applicable vendor, copies of bills for such Reletting Expenditures marked
“paid
        in full” (or such other documentation reasonably satisfactory to Lender to
        establish the payment of the Reletting Expenditures) for the portion due
        and for
        which payment or reimbursement is sought, (iv) upon final completion of such
        Reletting Expenditures, tenant estoppel certificates from the tenant leasing
        space in the Premises for whom the Reletting Expenditures are being made
        which
        indicate, among other things, that the tenant under such Space Lease has
        been in
        occupancy and open for business for at least one full calendar month and
        paid
        all rents due under the Space Lease without abatement, suspension, deferment,
        diminution, reduction or other allowances for at least one full calendar
        month,
        and (v) such other documentation as may be reasonably requested by Lender
        to
        establish that the Reletting Expenditures or portion thereof which are the
        subject of such request have been completed, all of which are reasonably
        acceptable in form and substance to Lender, Lender shall disburse to Borrower,
        to the extent of funds remaining in the Reletting Reserve Escrow Account,
        any
        actual expenses incurred in connection with such Reletting Expenditures which
        were set forth in the approved Budget provided that Borrower may make a request
        for disbursement of sums from the Reletting Reserve Escrow Account no more
        than
        once during any month and any request (other than the final request) shall
        be in
        a minimum amount of $5,000. With respect to any Reletting Expenditures which
        relate to brokerage commissions, upon the receipt of (i) copies of bills
        for
        such Reletting Expenditures marked “paid in full”, (ii) tenant estoppel
        certificates from the tenant leasing space in the Premises for which Lease
        the
        brokerage commissions are due which indicate, among other things, that the
        tenant under such Space Lease has been in occupancy and open for business
        for at
        least one full calendar month and paid all rents due under the Space Lease
        without abatement, suspension, deferment, diminution, reduction or other
        allowances for at least one full calendar month and (iii) a copy of the signed
        Lease for which said Reletting Expenditures relate, in each case which has
        an
        expiration date at least three (3) years, all of which are reasonably acceptable
        to Lender, Lender shall disburse to Borrower any actual expenses incurred
        in
        connection with such Reletting Expenditures out of the Reletting Reserve
        Escrow
        Account. Lender shall not be required to make any disbursements out of the
        Reletting Reserve Escrow Account if an Event of Default shall have occurred
        and
        is continuing, if more than one such request is made in any month or if
        sufficient funds are not available in the Reletting Reserve Escrow
        Account.

       

      
        
          
          

        

        
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      (b) In
        addition, Borrower shall pay to Lender for deposit with Lender all funds
        received by Borrower in excess of $50,000 in connection with any cancellation,
        termination or surrender of any Lease, including, but not limited to, any
        surrender or cancellation fees, buyout fees, or reimbursements for tenant
        improvements and leasing commissions (“Termination Payments”); provided, as long
        as no Event of Default exists, when the applicable space is re-leased pursuant
        to a Space Lease entered into in accordance with the terms of this Security
        Instrument, any such Termination Payments on deposit with Lender and remaining
        after payment of all tenant improvements and leasing commissions in connection
        with such new Space Lease pursuant to 5.07(a) above shall be paid to Borrower
        upon the occupancy and the payment of rents due under the new Space Lease
        for at
        least one full calendar month

       

      (c) Provided
        that no Event of Default shall have occurred, all funds deposited into the
        Reletting Reserve Escrow Account relating to Reletting Expenditures shall
        be
        held by Lender pursuant to the provisions of this Security Instrument and
        shall
        be applied in payment of Reletting Expenditures. Should an Event of Default
        occur, the sums on deposit in the Reletting Reserve Sub-Account and the
        Reletting Reserve Escrow Account may be applied by Lender in payment of any
        Reletting Expenditures or may be applied to the payment of the Debt or any
        other
        charges affecting all or any portion of the Property, as Lender, in its sole
        discretion, may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      (d) In
        the
        event that Borrower holds any letters of credit as security for obligations
        under Leases, within thirty (30) days (or if any letters of credit may expire
        within such thirty (30) day period, prior to the expiration of such letter
        of
        credit) of the occurrence of a monetary event of default or a material
        non-monetary event of default under the related Lease, Borrower shall present
        for draw and use all commercially reasonable efforts to draw the full amount
        which it is entitled to draw under such letter of credit; provided, however,
        Borrower shall not be obliged to draw on such letter of credit if (i) Borrower
        has submitted to Lender a plan of action to resolve any event of default
        which
        gave rise to Borrower’s right to draw on the applicable letter of credit and
        Lender shall, in its reasonable discretion, have consented to such plan or
        Borrower is precluded from making a draw on the applicable letter of credit
        by
        applicable law, and (ii) the term of such letter of credit will not expire
        prior
        to the implementation of such submitted plan. Borrower shall deliver to Lender
        all security deposits which are applied against sums due to Borrower under
        Leases (including, without limitation, all sums drawn on letters of credits
        held
        as security for obligations of tenants under Leases) and Rent paid by or
        on
        behalf of any lessee under a Space Lease in whole or partial consideration
        for
        the termination, cancellation or surrender of any Space Lease including,
        without
        limitation, surrender or cancellation fees, buy-out fees or reimbursements
        for
        tenant improvements or leasing commissions, within five (5) Business Days
        of
        receipt thereof and all such sums shall be held in the Reletting Reserve
        Escrow
        Account and shall be disbursed therefrom as set forth above.

       

      Section
        5.08. Recurring
        Replacement Reserve Escrow Account.
        Borrower hereby agrees to pay all Recurring Replacement Expenditures with
        respect to the Property (without regard to the amount of money then available
        in
        the Recurring Replacement Reserve Sub-Account or the Recurring Replacement
        Reserve Escrow Account). Provided that Lender has received written notice
        from
        Borrower at least five (5) Business Days prior to the due date of any payment
        relating to Recurring Replacement Expenditures and not more frequently than
        once
        each month, and further provided that no Event of Default has occurred and
        is
        continuing, that there are sufficient funds available in the Recurring
        Replacement Reserve Escrow Account and that Borrower shall have theretofore
        furnished Lender with lien waivers, copies of bills, invoices and other
        reasonable documentation as may be required by Lender to establish that the
        Recurring Replacement Expenditures which are the subject of such request
        represent amounts due for completed or partially completed capital work and
        improvements performed at the Property, Lender shall make such payments out
        of
        the Recurring Replacement Reserve Escrow Account. 

      
        
          
          

        

        
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      Provided
        that no Event of Default shall have occurred, all funds deposited into the
        Recurring Replacement Reserve Escrow Account shall be held by Lender pursuant
        to
        the provisions of this Security Instrument and shall be applied in payment
        of
        Recurring Replacement Expenditures. Should an Event of Default occur, the
        sums
        on deposit in the Recurring Replacement Reserve Sub-Account and the Recurring
        Replacement Reserve Escrow Account may be applied by Lender in payment of
        any
        Recurring Replacement Expenditures or may be applied to the payment of the
        Debt
        or any other charges affecting all or any portion of the Property, as Lender
        in
        its sole discretion may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      Section
        5.09. Operation
        and Maintenance Expense Escrow Account.
        Borrower hereby agrees to pay all Operating Expenses with respect to the
        Property (without regard to the amount of money then available in the Operation
        and Maintenance Expense Sub-Account or the Operation and Maintenance Expense
        Escrow Account). All funds allocated to the Operation and Maintenance Expense
        Escrow Account shall be held by Lender pursuant to the provisions of this
        Security Instrument. Any sums held in the Operation and Maintenance Expense
        Escrow Account shall be disbursed to Borrower within five (5) Business Days
        of
        receipt by Lender from Borrower of (a) a written request for such disbursement
        which shall indicate the Operating Expenses (exclusive of Basic Carrying
        Costs
        and any management fees payable to Borrower or to Affiliates of Borrower)
        for
        which the requested disbursement is to pay and (b) an Officer’s Certificate
        stating that no Operating Expenses with respect to the Property are more
        than
        sixty (60) days past due; provided,
        however,
        in the
        event that Borrower legitimately disputes any invoice for an Operating Expense,
        and (i) no Event of Default has occurred and is continuing hereunder, (ii)
        Borrower shall have set aside adequate reserves for the payment of such disputed
        sums together with all interest and late fees thereon, (iii) Borrower has
        complied with all the requirements of this Security Instrument relating thereto,
        and (iv) the contesting of such sums shall not constitute a default under
        any
        other instrument, agreement, or document to which Borrower is a party, then
        Borrower may, after certifying to Lender as to items (i) through (iv) hereof,
        contest such invoice. Together with each such request, Borrower shall furnish
        Lender with bills and all other documents necessary for the payment of the
        Operating Expenses which are the subject of such request. Borrower may request
        a
        disbursement from the Operation and Maintenance Expense Escrow Account no
        more
        than one (1) time per calendar month. Should an Event of Default occur and
        be
        continuing, the sums on deposit in the Operation and Maintenance Expense
        Sub-Account or the Operation and Maintenance Expense Escrow Account may be
        applied by Lender in payment of any Operating Expenses for the Property or
        may
        be applied to the payment of the Debt or any other charges affecting all
        or any
        portion of the Property as Lender, in its sole discretion, may determine;
        provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

      
        
          
          

        

        
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      Section
        5.10. Intentionally
        Deleted

       

      Section
        5.11. Curtailment
        Reserve Escrow Account.
        Funds
        deposited into the Curtailment Reserve Escrow Account during an O&M
        Operative Period shall be held by Lender in the Curtailment Reserve Escrow
        Account as additional security for the Loan until the Loan has been paid
        in
        full. Notwithstanding anything herein to the contrary, provided that no Event
        of
        Default and no O&M Operative Period has occurred and is continuing, Lender
        shall, upon written request from Borrower, disburse all sums contained in
        the
        Curtailment Reserve Escrow Account to Borrower. Should an Event of Default
        occur, the sums on deposit in the Curtailment Reserve Sub-Account and the
        Curtailment Reserve Escrow Account may be applied by Lender to the payment
        of
        the Debt or other charges affecting all or any portion of the Property, as
        Lender, in its sole discretion, may determine; provided, however, that no
        such
        application shall be deemed to have been made by operation of law or otherwise
        until actually made by Lender as herein provided. Lender shall calculate
        the
        Debt Service Coverage as of the end of each fiscal quarter. Such calculation
        shall be completed within ten (10) Business Days of Lender’s receipt of the
        quarterly financial statements required under Section 2.09(b) with respect
        to
        such fiscal quarter.

       

      Section
        5.12. Performance
        of Engineering Work.
        (a)
Borrower
        shall promptly commence and diligently thereafter pursue to completion (without
        regard to the amount of money then available in the Engineering Escrow Account)
        the Required Engineering Work prior to the twelve 12 month anniversary of
        the
        Closing Date. After Borrower completes an item of Required Engineering Work,
        Borrower may submit to Lender an invoice therefor with lien waivers and a
        statement from the Engineer, reasonably acceptable to Lender, indicating
        that
        the portion of the Required Engineering Work in question has been completed
        in
        compliance with all Legal Requirements, and Lender shall, within twenty (20)
        days thereafter, although in no event more frequently than once each month,
        reimburse such amount to Borrower from the Engineering Escrow Account;
provided,
        however,
        that
        Borrower shall not be reimbursed more than the amount set forth on Exhibit
        D
        hereto as the amount allocated to the portion of the Required Engineering
        Work
        for which reimbursement is sought. 

       

      (b) From
        and
        after the date all of the Required Engineering Work is completed, Borrower
        may
        submit a written request, which request shall be delivered together with
        final
        lien waivers and a statement from the Engineer, as the case may be, reasonably
        acceptable to Lender, indicating that all of the Required Engineering Work
        has
        been completed in compliance with all Legal Requirements, and Lender shall,
        within twenty (20) days thereafter, disburse any balance of the Engineering
        Escrow Account to Borrower. Should an Event of Default occur, the sums on
        deposit in the Engineering Escrow Account may be applied by Lender in payment
        of
        any Required Engineering Work or may be applied to the payment of the Debt
        or
        any other charges affecting all or any portion of the Property as Lender
        in its
        sole discretion may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      
        
          
          

        

        
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      Section
        5.13. Loss
        Proceeds.
        In the
        event of a casualty to the Property, unless Lender elects or is required
        pursuant to Article III hereof to make all of the Insurance Proceeds available
        to Borrower for restoration, Lender and Borrower shall cause all such Insurance
        Proceeds to be paid by the insurer directly to the Central Account, whereupon
        Lender shall, after deducting Lender’s reasonable costs of recovering and paying
        out such Insurance Proceeds, including without limitation, reasonable attorneys’
fees, apply the same to reduce the Debt in accordance with the terms of the
        Note; provided,
        however,
        that if
        Lender elects, or is deemed to have elected, or is required to make the
        Insurance Proceeds available for restoration, all Insurance Proceeds in respect
        of rent loss, business interruption or similar coverage shall be maintained
        in
        the Central Account, to be applied by Lender in the manner as Rent received
        with
        respect to the operation of the Property; provided,
        further,
        however,
        that in
        the event that the Insurance Proceeds with respect to rent loss, business
        interruption or similar insurance policy are paid in a lump sum in advance,
        Lender shall hold such Insurance Proceeds in a segregated interest-bearing
        escrow account, which shall be an Eligible Account, shall estimate, in Lender’s
        reasonable discretion, the number of months required for Borrower to restore
        the
        damage caused by the casualty, shall divide the aggregate rent loss, business
        interruption or similar Insurance Proceeds by such number of months, and
        shall
        disburse from such bank account into the Central Account each month during
        the
        performance of such restoration such monthly installment of said Insurance
        Proceeds. In the event that Insurance Proceeds are to be applied toward
        restoration, Lender shall hold such funds in a segregated bank account at
        the
        Bank, which shall be an Eligible Account, and shall disburse same in accordance
        with the provisions of Section 3.04 hereof. Unless Lender elects, or is required
        pursuant to Section 6.01 hereof to make all of the Condemnation Proceeds
        available to Borrower for restoration, Lender and Borrower shall cause all
        such
        Condemnation Proceeds to be paid to the Central Account, whereupon Lender
        shall,
        after deducting Lender’s reasonable costs of recovering and paying out such
        Condemnation Proceeds, including without limitation, reasonable attorneys’ fees,
        apply same to reduce the Debt in accordance with the terms of the Note;
provided,
        however,
        that
        any Condemnation Proceeds received in connection with a temporary Taking
        shall
        be maintained in the Central Account, to be applied by Lender in the same
        manner
        as Rent received with respect to the operation of the Property; provided,
        further,
        however,
        that in
        the event that the Condemnation Proceeds of any temporary Taking are paid
        in a
        lump sum in advance, Lender shall hold such Condemnation Proceeds in a
        segregated interest-bearing bank account, which shall be an Eligible Account,
        shall estimate, in Lender’s reasonable discretion, the number of months that the
        Property shall be affected by such temporary Taking, shall divide the aggregate
        Condemnation Proceeds in connection with such temporary Taking by such number
        of
        months, and shall disburse from such bank account into the Central Account
        each
        month during the pendency of such temporary Taking such monthly installment
        of
        said Condemnation Proceeds. In the event that Condemnation Proceeds are to
        be
        applied toward restoration, Lender shall hold such funds in a segregated
        bank
        account at the Bank, which shall be an Eligible Account, and shall disburse
        same
        in accordance with the provisions of Section 3.04 hereof. If any Loss Proceeds
        are received by Borrower, such Loss Proceeds shall be received in trust for
        Lender, shall be segregated from other funds of Borrower, and shall be forthwith
        paid into the Central Account, or paid to Lender to hold in a segregated
        bank
        account at the Bank, in each case to be applied or disbursed in accordance
        with
        the foregoing. Any Loss Proceeds made available to Borrower for restoration
        in
        accordance herewith, to the extent not used by Borrower in connection with,
        or
        to the extent they exceed the cost of, such restoration, shall be paid to
        Borrower promptly following the completion of the Work.

       

      
        
          
          

        

        
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      Section
        5.14. Intentionally
        Deleted.

       

      Section
        5.15. Holdback
        Escrow Account.
        a)
        On any
        of the sixth (6), twelfth (12th), eighteenth (18th) and twenty-fourth (24th)
        month anniversaries of the date hereof, provided that no Event of Default
        has
        occurred and is continuing, Borrower shall have the right to request and
        shall
        be entitled to the release of all or any portion of the Holdback Reserve
        Escrow
        Account in the amount of the Holdback Release Amount provided the Property
        has
        sufficient Pro-Forma Net Operating Income to achieve a Debt Service Coverage
        of
        1.20 and a loan-to-value ratio of 80%. In other words, based upon Pro-Forma
        Net
        Operating Income, Lender shall calculate what loan amount would be supported
        in
        order to achieve a Debt Service Coverage of 1.20 (using a mortgage loan constant
        associated with 6.09% which is 7.2641881%) with a loan to value ratio of
        no
        greater than eighty percent (80%) and from that loan amount, Lender shall
        subtract $24,250,000.00 (plus any amounts previously released from the Holdback
        Escrow Account). The resulting amount would then be deducted from the balance
        held in the Holdback Reserve Escrow Account. It is intended that the balance
        in
        the Holdback Reserve Escrow Account may be partially released in stages provided
        that in no event shall Borrower be entitled to more than four (4) requests
        to
        have the funds released. The calculation formula for the release of funds
        and an
        example is set forth on Exhibit G annexed hereto. Borrower shall provide
        to
        Lender any and all financial information as Lender reasonably requests as
        necessary to evaluate Borrower's request to release funds from the Holdback
        Reserve Escrow Account. Lender shall not be required to make any disbursements
        out of the Holdback Reserve Escrow Account if an Event of Default shall have
        occurred and is continuing, if more than one such request is made every six
        (6)
        months or if sufficient funds are not available in the Holdback Reserve Escrow
        Account. In the event that the Property has insufficient Pro-Forma Net Operating
        Income to achieve a Debt Service Coverage of 1.20 and a loan-to-value ratio
        of
        80% to support the entire Loan Amount, in all cases on or before twenty-four
        (24) months from the date hereof, Borrower shall no longer be entitled to
        request a return of such funds and Lender shall apply the balance of funds
        then
        remaining in the Holdback Reserve Escrow Account to the Debt with the payment
        of
        any prepayment fee or penalty as provided in the Note (including any amounts
        held in the Yield Maintenance Reserve Escrow Account) and manner as determined
        by Lender in its sole and absolute discretion; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      (b) Upon
        the
        release of all or any portion of the Holdback Reserve Escrow Account, Lender,
        in
        its reasonable discretion, shall contemporaneously release to Borrower the
        corresponding amount of the Debt Service Reserve Escrow Account and the Yield
        Maintenance Reserve Escrow Account based on the amount which has been released
        (e.g.,
        if
        $2,000,000 of the Holdback Reserve Escrow Account is released, then that
        amount
        of the Debt Service Reserve Escrow Account shall be released which is not
        necessary to supplement any debt service payments towards a $26,250,000 loan
        amount until the Payment Date in 2008 as well as any excess amounts in the
        Yield
        Maintenance Reserve Escrow Account which would not be necessary if the then
        balance of the Holdback Reserve Escrow Account were to be applied to the
        Debt).

      
        
          
          

        

        
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      Provided
        that no Event of Default shall have occurred, all funds deposited into the
        Basic
        Holdback Reserve Escrow Account shall be held by Lender pursuant to the
        provisions of this Security Instrument. Should an Event of Default occur,
        the
        sums on deposit in the Holdback Reserve Sub-Account and the Holdback Reserve
        Escrow Account may be applied by Lender in payment of the payment of the
        Debt or
        any other charges affecting all or any portion of the Property as Lender
        in its
        sole discretion may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      Section
        5.16. Debt
        Service Reserve Account.
        The
        Initial Debt Service Reserve Deposit shall act as a debt service reserve
        on that
        portion of the Loan Amount which constitutes the Holdback Reserve Escrow
        Account
        under Section 5.15 hereof. In the event of a shortfall of revenues (the
“Shortfall”) generated at the Property to pay monthly debt service, upon
        Borrower’s request together with any and all financial information evidencing
        such Shortfall, Lender shall disburse to itself on each Payment Date the
        amount
        of the Shortfall until the earlier to occur of (x) the Payment Date in April
        2008 and (y) the release of the Holdback Reserve Escrow Account in accordance
        with Section 5.15. Upon the release of all or a portion of the Holdback Reserve
        Escrow Account, all or a portion of the Debt Service Reserve Escrow Account
        shall be released to Borrower in accordance with Section 5.15(b). If all
        or any
        portion of the Holdback Reserve Escrow Account is applied to the Debt in
        accordance with Section 5.15, to the extent the amounts in the Yield Maintenance
        Reserve Escrow Account are sufficient to pay any prepayment penalty, the
        Debt
        Service Reserve Escrow Account shall be returned to Borrower; provided that,
        if
        the Yield Maintenance Reserve Escrow Account is insufficient, the amounts
        remaining in the Debt Service Reserve Sub-Account may be applied towards
        any
        prepayment penalty. Lender’s failure to disburse funds from the Debt Service
        Reserve Account shall not relieve Borrower of its obligation to pay all amounts
        due Lender in accordance with this Security Instrument on any Payment Date.
        Borrower acknowledges that Lender has no obligation to disburse more than
        the
        remaining balance of the Debt Service Reserve Account if such amount is less
        than the full payment requested.

       

      Provided
        that no Event of Default shall have occurred, all funds deposited into the
        Debt
        Service Reserve Escrow Account shall be held by Lender pursuant to the
        provisions of this Security Instrument and shall be applied to the payment
        of
        debt service in accordance with the terms hereof. Should an Event of Default
        occur, the sums on deposit in the Debt Service Reserve Sub-Account and the
        Debt
        Service Reserve Escrow Account may be applied by Lender in payment of debt
        service or may be applied to the payment of the Debt or any other charges
        affecting all or any portion of the Property as Lender in its sole discretion
        may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided.

       

      Section
        5.17. Yield
        Maintenance Reserve Escrow Account.
        The
        Initial Yield Maintenance Reserve Deposit shall act as a reserve for any
        prepayment penalty incurred in connection with Section 5.15 hereof. Provided
        no
        Event of Default has occurred and
        is
        continuing, Borrower shall have the right to use all or any portion of the
        Yield
        Maintenance Reserve Escrow Account towards any prepayment penalty incurred
        in
        the event Lender applies the Holdback Reserve Escrow Account to the prepayment
        of the Debt in accordance with Section 5.15 of this Security
        Instrument.

       

      
        
          
          

        

        
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      Provided
        that no Event of Default shall have occurred, all funds deposited into the
        Yield
        Maintenance Reserve Escrow Account shall be held by Lender pursuant to the
        provisions of this Security Instrument and shall be applied in payment of
        any
        prepayment fees in accordance with the terms hereof. Should an Event of Default
        occur, the sums on deposit in the Yield Maintenance Reserve Sub-Account and
        the
        Yield Maintenance Reserve Escrow Account may be applied by Lender in payment
        of
        any prepayment penalty or may be applied to the payment of the Debt or any
        other
        charges affecting all or any portion of the Property as Lender in its sole
        discretion may determine; provided,
        however,
        that no
        such application shall be deemed to have been made by operation of law or
        otherwise until actually made by Lender as herein provided. 

       

      ARTICLE
        VI: CONDEMNATION

       

      Section
        6.01. Condemnation.
        i)
        Borrower
        shall notify Lender promptly of the commencement or threat of any Taking
        of the
        Property or any portion thereof. Lender is hereby irrevocably appointed as
        Borrower’s attorney-in-fact, coupled with an interest, with exclusive power to
        collect, receive and retain the proceeds of any such Taking and to make any
        compromise or settlement in connection with such proceedings (subject to
        Borrower’s reasonable approval, except after the occurrence of an Event of
        Default, in which event Borrower’s approval shall not be required), subject to
        the provisions of this Security Instrument; provided, however, that Borrower
        may
        participate in any such proceedings and shall be authorized and entitled
        to
        compromise or settle any such proceeding with respect to Condemnation Proceeds
        in an amount less than five percent (5%) of the Loan Amount. Borrower shall
        execute and deliver to Lender any and all instruments reasonably required
        in
        connection with any such proceeding promptly after request therefor by Lender.
        Except as set forth above, Borrower shall not adjust, compromise, settle
        or
        enter into any agreement with respect to such proceedings without the prior
        consent of Lender. All Condemnation Proceeds are hereby assigned to and shall
        be
        paid to Lender. With respect to Condemnation Proceeds in an amount in excess
        of
        five percent (5%) of the Allocated Loan Amount, Borrower hereby authorizes
        Lender to compromise, settle, collect and receive such Condemnation Proceeds,
        and to give proper receipts and acquittance therefor. Subject to the provisions
        of this Article VI, Lender may apply such Condemnation Proceeds (less any
        cost
        to Lender of recovering and paying out such proceeds, including, without
        limitation, reasonable attorneys’ fees and disbursements and costs allocable to
        inspecting any repair, restoration or rebuilding work and the plans and
        specifications therefor) toward the payment of the Debt or to allow such
        proceeds to be used for the Work.

       

      (b) “Substantial
        Taking”
shall
        mean (i) a Taking of such portion of the Property that would, in Lender’s
        reasonable discretion, leave remaining a balance of the Property which would
        not
        under then current economic conditions, applicable Development Laws and other
        applicable Legal Requirements, permit the restoration of the Property so
        as to
        constitute a complete, rentable facility of the same type as existed prior
        to
        the Taking, having adequate ingress and egress to the Property, the Leases
        of
        which covering 75% of the square footage of the Property immediately prior
        to
        such Taking will not be terminated due to the Taking during and following
        the
        restoration of such Property and being capable of producing a projected Net
        Operating Income (as reasonably determined by Lender) yielding a projected
        Debt
        Service Coverage therefrom for the next two (2) years of not less than the
        Required Debt Service Coverage or (ii) a Taking which occurs less than two
        (2)
        years prior to the Maturity Date or (iii) a Taking which Lender is not
        reasonably satisfied could be repaired within twelve (12) months and at least
        six (6) months prior to the Maturity Date or (iv) a Taking of fifteen percent
        (15%) or more of the Property.

      
        
          
          

        

        
          -68-

          
            

          

        

        
          
          

        

      

       

      (c) In
        the
        case of a Substantial Taking, Condemnation Proceeds shall be payable to Lender
        in reduction of the Debt but without any prepayment fee or charge of any
        kind
        and, if Borrower elects to apply any Condemnation Proceeds it may receive
        pursuant to this Security Instrument to the payment of the Debt, Borrower
        may
        prepay the balance of the Debt without any prepayment fee or charge of any
        kind.

       

      (d) In
        the
        event of a Taking which is less than a Substantial Taking, Borrower at its
        sole
        cost and expense (whether or not the award shall have been received or shall
        be
        sufficient for restoration) shall proceed diligently to restore, or cause
        the
        restoration of, the remaining Improvements not so taken, to maintain a complete,
        rentable, self-contained fully operational facility of the same sort as existed
        prior to the Taking in as good a condition as is reasonably possible. In
        the
        event of such a Taking, Lender shall receive the Condemnation Proceeds and
        shall
        pay over the same:

       

      (i) (i) first,
        provided no Default shall have occurred and be continuing, to Borrower to
        the
        extent of any portion of the award as may be necessary to pay the reasonable
        cost of restoration of the Improvements remaining, and

       

      (ii) (ii) second,
        to Lender, in reduction of the Debt without any prepayment premium or charge
        of
        any kind.

       

      If
        one or
        more Takings in the aggregate create a Substantial Taking, then, in such
        event,
        the sections of this Article VI above applicable to Substantial Takings shall
        apply.

       

      (e) In
        the
        event Lender is obligated to or elects to make Condemnation Proceeds available
        for the restoration or rebuilding of the Property, such proceeds shall be
        disbursed in the manner and subject to the conditions set forth in Section
        3.04(b) hereof. If, in accordance with this Article VI, any Condemnation
        Proceeds are used to reduce the Debt, they shall be applied in accordance
        with
        the provisions of the Note and, with no prepayment fee or charge of any kind.
        Borrower shall promptly execute and deliver all instruments requested by
        Lender
        for the purpose of confirming the assignment of the Condemnation Proceeds
        to
        Lender. Application of all or any part of the Condemnation Proceeds to the
        Debt
        shall be made in accordance with the provisions of Sections 3.06 and 3.07
        hereof. No application of the Condemnation Proceeds to the reduction of the
        Debt
        shall have the effect of releasing the lien of this Security Instrument until
        the remainder of the Debt has been paid in full. In the case of any Taking,
        Lender, to the extent that Lender has not been reimbursed by Borrower, shall
        be
        entitled, as a first priority out of any Condemnation Proceeds, to reimbursement
        for all costs, fees and expenses reasonably incurred in the determination
        and
        collection of any Condemnation Proceeds. All Condemnation Proceeds deposited
        with Lender pursuant to this Section, until expended or applied as provided
        herein, shall be held in accordance with Section 3.04(b) hereof and shall
        constitute additional security for the payment of the Debt and the payment
        and
        performance of Borrower’s obligations, but Lender shall not be deemed a trustee
        or other fiduciary with respect to its receipt of such Condemnation Proceeds
        or
        any part thereof. All awards so deposited with Lender shall be held by Lender
        in
        an Eligible Account, but Lender makes no representation or warranty as to
        the
        rate or amount of interest, if any, which may accrue on any such deposit
        and
        shall have no liability in connection therewith. For purposes hereof, any
        reference to the award shall be deemed to include interest, if any, which
        has
        accrued thereon.

       

      
        
          
            
            

          

          
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      ARTICLE
        VII: LEASES
        AND RENTS

       

      Section
        7.01. Assignment.
        (a)
Borrower
        does hereby bargain, sell, assign and set over unto Lender, all of Borrower’s
        interest in the Leases and Rents. The assignment of Leases and Rents in this
        Section 7.01 is an absolute, unconditional and present assignment from Borrower
        to Lender and not an assignment for security and the existence or exercise
        of
        Borrower’s license (revocable by Lender only during the continuance of an Event
        of Default) to collect Rent shall not operate to subordinate this assignment
        to
        any subsequent assignment. The exercise by Lender of any of its rights or
        remedies pursuant to this Section 7.01 shall not be deemed to make Lender
        a
        mortgagee-in-possession. In addition to the provisions of this Article VII,
        Borrower shall comply with all terms, provisions and conditions of the
        Assignment.

       

      (b) So
        long
        as there shall exist and be continuing no Event of Default, Borrower shall
        have
        a revocable license to take all actions with respect to all Leases and Rents,
        present and future, including the right to collect and use the Rents, subject
        to
        the terms of this Security Instrument and the Assignment.

       

      (c) In
        a
        separate instrument Borrower shall, as requested from time to time by Lender,
        assign to Lender or its nominee by specific or general assignment, any and
        all
        Leases, such assignments to be in form and content reasonably acceptable
        to
        Lender, but subject to the provisions of Section 7.01(b) hereof. Borrower
        agrees
        to deliver to Lender, within thirty (30) days after Lender’s request, a true and
        complete copy of every Lease and, within ten (10) Business Days after Lender’s
        request, a complete list of the Leases, certified by Borrower to be true,
        accurate and complete and stating the demised premises, the names of the
        lessees, the Rent payable under the Leases, the date to which such Rents
        have
        been paid, the material terms of the Leases, including, without limitation,
        the
        dates of occupancy, the dates of expiration, any Rent concessions, work
        obligations or other inducements granted to the lessees thereunder, and any
        renewal options.

       

      (d) The
        rights of Lender contained in this Article VII, the Assignment or any other
        assignment of any Lease shall not result in any obligation or liability of
        Lender to Borrower or any lessee under a Lease or any party claiming through
        any
        such lessee or constitute an assumption by Lender of any such liability or
        obligation.

       

      (e) At
        any
        time during the continuance of an Event of Default, the license granted
        hereinabove may be revoked by Lender, and Lender or a receiver appointed
        in
        accordance with this Security Instrument may enter upon the Property, and
        collect, retain and apply the Rents toward payment of the Debt in such priority
        and proportions as Lender in its sole discretion shall deem proper.

       

      (f) In
        addition to the rights which Lender may have herein, upon the occurrence
        and
        during the continuance of any Event of Default, Lender, at its option, may
        require Borrower to pay monthly in advance to Lender, or any receiver appointed
        to collect the Rents, the fair and reasonable rental value for the use and
        occupation of such part of the Property as may be used and occupied by Borrower
        and may require Borrower to vacate and surrender possession of the Property
        to
        Lender or to such receiver and, in default thereof, Borrower may be evicted
        by
        summary proceedings or otherwise.

      
        
          
          

        

        
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      Section
        7.02. Management
        of Property. 

       

      (a) Borrower
        shall manage the Property or cause the Property to be managed in a manner
        which
        is consistent with the Approved Manager Standard. The Manager (other than
        Borrower) shall at all times meet the Minimum Manager Credentials. All Space
        Leases shall provide for rental rates comparable to then existing local market
        rates and terms and conditions which constitute good and prudent business
        practice and are consistent with prevailing market terms and conditions,
        and
        shall be arm’s length transactions. All Space Leases shall be on a form
        previously approved by Lender with such commercially reasonable changes as
        are
        consistent with the standards of other similarly situated owners when compared
        with terms and conditions of leases in similarly situated shopping centers
        in
        similar context at the time in question, taking into account, inter alia,
        the
        type, creditworthiness and bargaining power of the prospective tenant and
        the
        location and size of the space covered by the proposed Lease, and shall provide
        that they are subordinate to this Security Instrument and that the lessees
        thereunder attorn to Lender. Borrower shall deliver copies of all Leases,
        amendments, modifications and renewals thereof to Lender. All proposed Space
        Leases for the Property shall be subject to the prior written approval of
        Lender, not to be unreasonably withheld or delayed, provided, however that
        Borrower may enter into new Space Leases with unrelated third parties without
        obtaining the prior consent of Lender provided that: (i) the leases conform
        with
        the requirements of this Section 7.02; (ii) the space to be leased pursuant
        to
        such proposed Lease, together with any other space which is leased to the
        proposed tenant or an Affiliate thereof, does not exceed 6,000 square feet;
        and
        (iii) the term of the proposed lease does not exceed six (6) years and,
        inclusive of all extensions and renewals, does not exceed ten (10) years.
        Lender’s consent to any Lease shall be deemed given, if the first correspondence
        from Borrower to Lender requesting such approval is in an envelope marked
        “PRIORITY” and contains a bold-faced, conspicuous legend at the top of the first
        page thereof stating that “IF YOU FAIL TO RESPOND TO OR TO EXPRESSLY DENY THIS
        REQUEST FOR APPROVAL IN WRITING WITHIN TEN (10) BUSINESS DAYS, YOUR APPROVAL
        MAY
        BE DEEMED GIVEN”, and is accompanied by the information and documents required
        above and any other information reasonably requested by Lender in writing
        prior
        to the expiration of such ten (10) Business Day period in order to adequately
        review the same has been delivered and, if Lender fails to respond or to
        expressly deny such request for approval in writing within the ten (10) Business
        Day period a second notice is delivered to Lender from Borrower in an envelope
        marked “PRIORITY” requesting approval containing a bold-faced, conspicuous
        legend at the top of the first page thereof stating that “IF YOU FAIL TO RESPOND
        TO OR EXPRESSLY DENY THIS REQUEST FOR APPROVAL IN WRITING WITHIN FIVE (5)
        BUSINESS DAYS, YOUR APPROVAL SHALL BE DEEMED GIVEN” and Lender fails to respond
        or to expressly deny each request for approval within the five (5) Business
        Day
        period.

       

      (b) Borrower
        (i) shall observe and perform all of its material obligations under the Leases
        pursuant to applicable Legal Requirements and shall not do or permit to be
        done
        anything to impair the value of the Leases as security for the Debt; (ii)
        shall
        promptly send copies to Lender of all notices of default which Borrower shall
        receive under the Leases; (iii) shall, consistent with the Approved Manager
        Standard, enforce all of the terms, covenants and conditions contained in
        the
        Leases to be observed or performed; (iv) shall not collect any of the Rents
        under the Leases more than one (1) month in advance (except that Borrower
        may
        collect in advance (A) such security deposits as are permitted pursuant to
        applicable Legal Requirements and are commercially reasonable in the prevailing
        market and (B) all rent deemed “additional rent” under the Leases); (v) shall
        not execute any other assignment of lessor’s interest in the Leases or the Rents
        except as otherwise expressly permitted pursuant to this Security Instrument;
        (vi) shall not cancel or terminate any of the Space Leases or accept a surrender
        thereof in any manner inconsistent with the Approved Manager Standard; (vii)
        shall not convey, transfer or suffer or permit a conveyance or transfer of
        all
        or any part of the Premises or the Improvements or of any interest therein
        so as
        to effect a merger of the estates and rights of, or a termination or diminution
        of the obligations of, lessees thereunder; (viii) shall not alter, modify
        or
        change the terms of any guaranty of any Major Space Lease or cancel or terminate
        any such guaranty in any manner inconsistent with the Approved Manager Standard;
        (ix) shall, in accordance with the Approved Manager Standard, make all
        reasonable efforts to seek lessees for space as it becomes vacant and enter
        into
        Leases in accordance with the terms hereof; (x) shall not materially modify,
        alter or amend any Major Space Lease or Property Agreement without Lender’s
        consent, which consent will not be unreasonably withheld or delayed; (xi)
        shall
        notify Lender promptly if any Pad Owner shall cease business operations or
        of
        the occurrence of any event of which it becomes aware affecting a Pad Owner
        or
        its property which might have any material effect on the Property; and (xii)
        shall, without limitation to any other provision hereof, execute and deliver
        at
        the reasonable request of Lender all such further assurances, confirmations
        and
        assignments in connection with the Property as are required herein and as
        Lender
        shall from time to time reasonably require.

       

      (c) All
        security deposits of lessees, whether held in cash or any other form, shall
        be
        treated by Borrower as trust funds, shall not be commingled with any other
        funds
        of Borrower and, if cash, shall be deposited by Borrower in the Security
        Deposit
        Account. Any bond or other instrument which Borrower is permitted to hold
        in
        lieu of cash security deposits under applicable Legal Requirements shall
        be
        maintained in full force and effect unless replaced by cash deposits as
        hereinabove described shall, if permitted pursuant to Legal Requirements,
        at
        Lender’s option, name Lender as payee or mortgagee thereunder or be fully
        assignable to Lender and shall, in all respects, comply with applicable Legal
        Requirements and otherwise be reasonably satisfactory to Lender. Borrower
        shall,
        upon request, provide Lender with evidence reasonably satisfactory to Lender
        of
        Borrower’s compliance with the foregoing. During the continuance of any Event of
        Default, Borrower shall, upon Lender’s request, if permitted by applicable Legal
        Requirements, turn over the security deposits (and any interest thereon)
        to
        Lender to be held by Lender in accordance with the terms of the Leases and
        all
        Legal Requirements.

       

      (d) Lender
        shall, upon request of Borrower, enter into a subordination, nondisturbance
        and
        attornment agreement (“SNDA”)
        with
        respect to each proposed tenant entering into a Lease in compliance with
        the
        requirements of this Security Instrument provided that such Lease is (i)
        with a
        tenant occupying at least 6,000 square feet of the Premises or is with an
        existing tenant pursuant to a Lease dated prior to the Closing Date which
        provides that the tenant thereunder is entitled to an SNDA or with any tenant
        which is renting space on a national basis which leases at least 2,000 square
        feet of the Premises, (ii) with a tenant reasonably approved by Lender in
        writing prior to Borrower’s execution of any such Lease and (iii) on the
        standard form of Lease previously approved in writing by Lender with such
        commercially reasonable changes as are consistent with the Approved Manager
        Standard. Any SNDA executed by Lender shall be in Lender’s then standard form
        with such changes as Lender shall agree to and provide that in the event
        Lender
        or any purchaser at foreclosure shall succeed to Borrower’s interest in the
        Property, the Leases of such tenants will remain in full force and effect
        and be
        binding upon Lender or such purchaser and such tenant as though each were
        original parties thereto.

      
        
          
          

        

        
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      (e) Borrower
        covenants and agrees with Lender that (i) the Property will be managed at
        all
        times by Borrower in accordance with Borrower’s organizational documents or by a
        Manager pursuant to a management agreement approved by Lender (the “Management
        Agreement”),
        (ii)
        after Borrower has knowledge of a fifty percent (50%) or more change in control
        of the ownership of Manager, Borrower will promptly give Lender notice thereof
        (a “Manager
        Control Notice”)
        and
        (iii) the Management Agreement (or in the case Borrower is acting as Manager,
        Borrower’s right to manage the Property) may be terminated by Lender at any time
        for cause (including, but not limited to, Manager’s gross negligence,
        misappropriation of funds, willful misconduct or fraud) or at any time following
        (A) the occurrence of an Event of Default, or (B) the receipt of a Manager
        Control Notice, or (C) the date upon which the Debt Service Coverage is 1.10:1.0
        or less. In the event of any such termination, a substitute managing agent
        shall
        be appointed by Borrower, subject to Lender’s prior written approval, which may
        be given or withheld in Lender’s sole discretion and which may be conditioned
        on, inter alia, a letter from each Rating Agency confirming that any rating
        issued by the Rating Agency in connection with a Securitization will not,
        as a
        result of the proposed change of Manager, be downgraded from the then current
        ratings thereof, qualified or withdrawn. Borrower may from time to time appoint
        a successor manager to manage the Property with Lender’s prior written consent
        which consent shall not be unreasonably withheld or delayed, provided that
        any
        such successor manager shall be a reputable management company which meets
        the
        Minimum Manager Credentials and each Rating Agency shall have confirmed in
        writing that any rating issued by the Rating Agency in connection with a
        Securitization will not, as a result of the proposed change of Manager, be
        downgraded from the then current ratings thereof, qualified or withdrawn.
        Borrower further covenants and agrees that Borrower shall require Manager
        (or
        any successor managers) to maintain at all times during the term of the Loan
        worker’s compensation insurance as required by Governmental
        Authorities.

       

      ARTICLE
        VIII: MAINTENANCE
        AND REPAIR

       

      Section
        8.01. Maintenance
        and Repair of the Property; Alterations; Replacement of Equipment. Borrower
        hereby covenants and agrees:

       

      (a) Borrower
        shall not (i) desert or abandon the Property, (ii) change the use of the
        Property or cause or permit the use or occupancy of any part of the Property
        to
        be discontinued if such discontinuance or use change would violate any zoning
        or
        other law, ordinance or regulation; (iii) consent to or seek any lowering
        of the
        zoning classification, or greater zoning restriction affecting the Property;
        or
        (iv) take any steps whatsoever to convert the Property, or any portion thereof,
        to a condominium or cooperative form of ownership.

       

      (b) Borrower
        shall, at its expense, (i) take good care of the Property including grounds
        generally, and utility systems and sidewalks, roads, alleys, and curbs therein,
        and shall keep the same in good, safe and insurable condition and in compliance
        with all applicable Legal Requirements, (ii) promptly make or cause to be
        made
        all repairs to the Property, above grade and below grade, interior and exterior,
        structural and nonstructural, ordinary and extraordinary, unforeseen and
        foreseen, and maintain the Property in a manner appropriate for the facility
        and
        (iii) not commit or suffer to be committed any waste of the Property or do
        or
        suffer to be done anything which will increase the risk of fire or other
        hazard
        to the Property or impair the value thereof. Borrower shall keep the sidewalks,
        vaults, gutters and curbs comprising, or adjacent to, the Property, clean
        and
        free from dirt, snow, ice, rubbish and obstructions. All repairs made by
        Borrower shall be made with first-class materials, in a good and workmanlike
        manner, shall be equal or better in quality and class to the original work
        and
        shall comply with all applicable Legal Requirements and Insurance Requirements.
        To the extent any of the above obligations are obligations of tenants under
        Space Leases or Pad Owners or other Persons under Property Agreements, Borrower
        may fulfill its obligations hereunder by causing such tenants, Pad Owners
        or
        other Persons, as the case may be, to perform their obligations thereunder.
        As
        used herein, the terms “repair” and “repairs” shall be deemed to include all
        necessary replacements.

      
        
          
          

        

        
          -72-

          
            

          

        

        
          
          

        

      

       

      (c) Borrower
        shall, except in connection with tenant improvement work under Space Leases
        entered into in accordance with the terms of this Security Instrument, not
        demolish, remove, construct, or, except as otherwise expressly provided herein,
        restore, or alter the Property or any portion thereof which could diminish
        the
        value of the Property nor consent to or permit any such demolition, removal,
        construction, restoration, addition or alteration which would diminish the
        value
        of the Property without Lender’s prior written consent in each instance, which
        consent shall not be unreasonably withheld or delayed.

       

      (d) Borrower
        represents and warrants to Lender that (i) there are no fixtures, machinery,
        apparatus, tools, equipment or articles of personal property attached or
        appurtenant to, or located on the Property, except for the Equipment and
        equipment leased by Borrower for the management, operation or maintenance
        of the
        Property in accordance with the Loan Documents; (ii) the Equipment and the
        leased equipment constitute all of the fixtures, machinery, apparatus, tools,
        equipment and articles of personal property necessary to the proper operation
        and maintenance of the Property; and (iii) all of the Equipment is free and
        clear of all liens, except for the lien of this Security Instrument and the
        Permitted Encumbrances. All right, title and interest of Borrower in and
        to all
        extensions, improvements, betterments, renewals and appurtenances to the
        Property hereafter acquired by, or released to, Borrower or constructed,
        assembled or placed by Borrower in the Property, and all changes and
        substitutions of the security constituted thereby, shall be and, in each
        such
        case, without any further mortgage, encumbrance, conveyance, assignment or
        other
        act by Lender or Borrower, shall become subject to the lien and security
        interest of this Security Instrument as fully and completely, and with the
        same
        effect, as though now owned by Borrower and specifically described in this
        Security Instrument, but at any and all times Borrower shall execute and
        deliver
        to Lender any documents Lender may reasonably deem necessary or appropriate
        for
        the purpose of specifically subjecting the same to the lien and security
        interest of this Security Instrument.

       

      (e) Notwithstanding
        the provisions of this Security Instrument to the contrary, Borrower shall
        have
        the right, at any time and from time to time, to remove and dispose of Equipment
        which may have become obsolete or unfit for use or which is no longer useful
        in
        the management, operation or maintenance of the Property. Borrower shall
        promptly replace any such Equipment so disposed of or removed with other
        Equipment of equal value and utility, free of any security interest or superior
        title, liens or claims; except that, if replacement of the Equipment so removed
        or disposed of is not necessary or desirable for the proper management,
        operation or maintenance of the Property, Borrower shall not be required
        to
        replace the same. All such replacements or additional equipment shall be
        deemed
        to constitute “Equipment” and shall be covered by the security interest herein
        granted.

       

      ARTICLE
        IX: TRANSFER
        OR ENCUMBRANCE OF THE PROPERTY

       

      Section
        9.01. Other
        Encumbrances.
        Borrower shall not further encumber or permit the further encumbrance in
        any
        manner (whether by grant of a pledge, security interest or otherwise) of
        the
        Property or any part thereof or interest therein, including, without limitation,
        of the Rents therefrom. In addition, Borrower shall not further encumber
        and
        shall not permit the further encumbrance in any manner (whether by grant
        of a
        pledge, security interest or otherwise) of Borrower or any direct or indirect
        interest in Borrower except as expressly permitted pursuant to this Security
        Instrument. 

      
        
          
          

        

        
          -73-

          
            

          

        

        
          
          

        

      

       

      Section
        9.02. No
        Transfer.
        (a)
        Borrower acknowledges that Lender has examined and relied on the expertise
        of
        Borrower and, if applicable, each General Partner, in owning and operating
        properties such as the Property in agreeing to make the Loan and will continue
        to rely on Borrower’s ownership of the Property as a means of maintaining the
        value of the Property as security for repayment of the Debt and Borrower
        acknowledges that Lender has a valid interest in maintaining the value of
        the
        Property. Borrower shall not Transfer, nor permit any Transfer, without the
        prior written consent of Lender, which consent Lender may withhold in its
        sole
        and absolute discretion other than pursuant to Space Leases as provided herein.
        Lender shall not be required to demonstrate any actual impairment of its
        security or any increased risk of default hereunder in order to declare the
        Debt
        immediately due and payable upon a Transfer without Lender’s consent. This
        provision shall apply to every Transfer regardless of whether voluntary or
        not,
        or whether or not Lender has consented to any previous Transfer.

       

      (b) Notwithstanding
        any provision of this Security Instrument to the contrary, no person or entity
        may, after the date hereof, become an owner of a direct or indirect interest
        in
        any entity comprising Borrower, which interest exceeds forty-nine percent
        (49%),
        without Lender’s written consent in each instance and receipt by Lender
        of (x)
        written confirmation that any rating issued by such Rating Agency in connection
        with
        the
        Securitization will not, as a result of the proposed Transfer, be downgraded
        from the then current ratings thereof, qualified or withdrawn, and (y) a
        substantive non-consolidation opinion in form and substance acceptable to
        Lender.

       

      Section
        9.03. Due
        on
        Sale.
        Lender
        may declare the Debt immediately due and payable upon any Transfer or further
        encumbrance without Lender’s consent without regard to whether any impairment of
        its security or any increased risk of default hereunder can be demonstrated.
        This provision shall apply to every Transfer or further encumbrance of the
        Property or any part thereof or interest in the Property or in Borrower
        regardless of whether voluntary or not, or whether or not Lender has consented
        to any previous Transfer or further encumbrance of the Property or interest
        in
        Borrower.

       

      Section
        9.04. Permitted
        Transfer.
        Notwithstanding the foregoing provisions of this Article IX, the sale,
        conveyance or transfer of the Property, except as otherwise set forth in
        Section
        9.04(B) (hereinafter, “Sale”)
        shall
        be permitted hereunder provided that each of the following terms and conditions
        are satisfied:

       

      (a) no
        Event
        of Default is then continuing hereunder or under any of the other Loan Documents
        and no O&M Operative Period shall have commenced and be
        continuing;

       

      (b) Lender
        shall have consented to the Sale, provided, however, such consent shall not
        be
        unreasonably withheld and, if the proposed Sale is to occur at any time after
        a
        Securitization, each Rating Agency shall have delivered written confirmation
        that any rating issued by such Rating Agency in connection with the
        Securitization will not, as a result of the proposed Sale, be downgraded
        from
        the then current ratings thereof, qualified or withdrawn; provided, however,
        that no request for consent to the Sale will be entertained by Lender if
        the
        proposed Sale is to occur within sixty (60) days of any contemplated sale
        of the
        Loan by Lender, whether in connection with a Securitization or
        otherwise;

       

      
        
          
          

        

        
          -74-

          
            

          

        

        
          
          

        

      

       

      (c) Borrower
        gives Lender written notice of the terms of the proposed Sale not less than
        forty-five (45) days before the date on which such Sale is scheduled to close
        and, concurrently therewith, gives Lender (i) all such information concerning
        the proposed transferee of the Property (hereinafter, “Buyer”)
        as
        Lender would require in evaluating an initial extension of credit to a borrower
        and Lender determines, in its reasonable discretion that the Buyer is acceptable
        to Lender in all respects and (ii) a non-refundable application fee equal
        to
        $7,500; 

       

      (d) Borrower
        pays Lender, concurrently with the closing of such Sale, a non-refundable
        assumption fee in an amount equal to one quarter of one percent (.25%) of
        the
        then outstanding Loan Amount together with all reasonable out-of-pocket costs
        and expenses, including, without limitation, reasonable attorneys’ fees,
        incurred by Lender in connection with the Sale;

       

      (e) Buyer
        assumes all of the obligations under the Loan Documents and, prior to or
        concurrently with the closing of such Sale, Buyer executes, without any cost
        or
        expense to Lender, such documents and agreements as Lender shall reasonably
        require to evidence and effectuate said assumption and delivers such legal
        opinions as Lender may require;

       

      (f) Borrower
        and Buyer execute, without any cost or expense to Lender, new financing
        statements or financing statement amendments and any additional documents
        reasonably requested by Lender;

       

      (g) Borrower
        delivers to Lender, without any cost or expense to Lender, such endorsements
        to
        Lender’s title insurance policy, hazard insurance policy endorsements or
        certificates and other similar materials as Lender may deem necessary at
        the
        time of the Sale, all in form and substance reasonably satisfactory to Lender,
        including, without limitation, an endorsement or endorsements to Lender’s title
        insurance policy insuring the lien of this Security Instrument, extending
        the
        effective date of such policy to the date of execution and delivery (or,
        if
        later, of recording) of the assumption agreement referenced above in
        subparagraph (e) of this Section, with no additional exceptions added to
        such
        policy, and insuring that fee simple title to the Property is vested in
        Buyer;

       

      (h) Borrower
        executes and delivers to Lender, without any cost or expense to Lender, a
        release of Lender, its officers, directors, employees and agents, from all
        claims and liability relating to the transactions evidenced by the Loan
        Documents, through and including the date of the closing of the Sale, which
        agreement shall be in form and substance reasonably satisfactory to Lender
        and
        shall be binding upon Buyer; 

       

      (i) subject
        to the provisions of Section 18.32 hereof, such Sale is not construed so
        as to
        relieve Borrower of any personal liability under the Note or any of the other
        Loan Documents for any acts or events occurring or obligations arising prior
        to
        or simultaneously with the closing of such Sale, and Borrower executes, without
        any cost or expense to Lender, such documents and agreements as Lender shall
        reasonably require to evidence and effectuate the ratification of said personal
        liability; provided that, upon the closing of such Sale, if Borrower and
        Buyer
        have satisfied each of the terms of this Section 9.04, as reasonably determined
        by Lender, Lender shall release Borrower from all obligations arising after
        the
        closing of such Sale. Additionally, if a replacement guarantor acceptable
        to
        Lender in its reasonable discretion executes a guaranty identical in substance
        to the guaranty executed by Guarantor in connection with the Loan (the
“Guaranty”),
        Lender shall release the existing Guarantor from any liabilities under the
        Guaranty arising after the closing of such Sale;

      
        
          
          

        

        
          -75-

          
            

          

        

        
          
          

        

      

       

      (j) such
        Sale
        is not construed so as to relieve any Guarantor of its obligations under
        any
        guaranty or indemnity agreement executed in connection with the Loan and
        each
        such Guarantor executes, without any cost or expense to Lender, such documents
        and agreements as Lender shall reasonably require to evidence and effectuate
        the
        ratification of each such guaranty agreement, provided that if Buyer or a
        party
        associated with Buyer approved by Lender in its sole discretion assumes the
        obligations of the current Guarantor under its guaranty and Buyer or such
        party
        associated with Buyer, as applicable, executes, without any cost or expense
        to
        Lender, a new guaranty in similar form and substance to the existing guaranty
        and otherwise satisfactory to Lender, then Lender shall release the current
        Guarantor from all obligations arising under its guaranty after the closing
        of
        such Sale; and

       

      (k) Buyer
        is
        a Single Purpose Entity and Lender receives a non-consolidation opinion relating
        to Buyer from Buyer’s counsel, which opinion is in form and substance acceptable
        to Lender.

       

      ARTICLE
        X: CERTIFICATES

       

      Section
        10.01. Estoppel
        Certificates.
        (a)
After
        request by Lender, Borrower, within fifteen (15) days and at its expense,
        will
        furnish Lender with a statement, duly acknowledged and certified, setting
        forth
        (i) the amount of the original principal amount of the Note, and the unpaid
        principal amount of the Note, (ii) the rate of interest of the Note, (iii)
        the
        date payments of interest and/or principal were last paid, (iv) any offsets
        or
        defenses to the payment of the Debt, and if any are alleged, the nature thereof,
        (v) that the Note and this Security Instrument have not been modified or
        if
        modified, giving particulars of such modification and (vi) to the best of
        Borrower’s knowledge, that there has occurred and is then continuing no Default
        or if such Default exists, the nature thereof, the period of time it has
        existed, and the action being taken to remedy such Default.

       

      (b) Within
        fifteen (15) days after written request by Borrower, Lender shall furnish
        to
        Borrower a written statement confirming the amount of the Debt, the maturity
        date of the Note and the date to which interest has been paid.

       

      (c) Borrower
        shall use all commercially reasonable efforts to obtain estoppel certificates
        from tenants in form and substance reasonably acceptable to Lender or in
        form
        and substance as provided in the applicable Leases, but, provided no Event
        of
        Default has occurred and is continuing, in no event shall Borrower be required
        to deliver estoppel certificates more than twice during any Loan
        Year.

       

      ARTICLE
        XI: NOTICES

       

      Section
        11.01. Notices.
        Any
        notice, demand, statement, request or consent made hereunder shall be in
        writing
        and delivered personally or sent to the party to whom the notice, demand
        or
        request is being made by Federal Express or other nationally recognized
        overnight delivery service, as follows and shall be deemed given when delivered
        personally or one (1) Business Day after being deposited with Federal Express
        or
        such other nationally recognized delivery service:

      
        
          
          

        

        
          -76-

          
            

          

        

        
          
          

        

      

       

      
        	
                If
                  to Lender:

              	
                To
                  Lender, at the address first written above,

              
	 	 
	
                with
                  a copy to:

              	
                Winston
                  & Strawn LLP

              
	 	
                200
                  Park Avenue

              
	 	
                New
                  York, New York 10166

              
	 	
                Attention:
                  Corey A. Tessler, Esq.

              
	 	 
	
                If
                  to Borrower:

              	
                To
                  Borrower, at the address first written above,

              
	 	 
	
                with
                  a copy to:

              	
                Herrick
                  Feinstein LLP

              
	 	
                2
                  Park Avenue 

              
	 	
                New
                  York, New York 10016 

              
	 	
                Attention:
                  Sheldon Chanales, Esq.

              

      

       

      or
        such
        other address as either Borrower or Lender shall hereafter specify by not
        less
        than ten (10) days prior written notice as provided herein; provided, however,
        that notwithstanding any provision of this Article to the contrary, such
        notice
        of change of address shall be deemed given only upon actual receipt thereof.
        Rejection or other refusal to accept or the inability to deliver because
        of
        changed addresses of which no notice was given as herein required shall be
        deemed to be receipt of the notice, demand, statement, request or
        consent.

       

      
        
          
          

        

        
          -77-

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        XII: INDEMNIFICATION

       

      Section
        12.01. Indemnification
        Covering Property.
        In
        addition, and without limitation, to any other provision of this Security
        Instrument or any other Loan Document, Borrower shall protect, indemnify
        and
        save harmless Lender and its successors and assigns, and each of their agents,
        employees, officers, directors, stockholders, partners and members
        (collectively, “Indemnified
        Parties”)
        for,
        from and against any claims, demands, penalties, fines, actual liabilities,
        settlements, actual damages, actual costs and expenses of whatever kind or
        nature, known or unknown, contingent or otherwise, whether incurred or imposed
        within or outside the judicial process, including, without limitation,
        reasonable attorneys’ fees and disbursements imposed upon or incurred by or
        asserted against any of the Indemnified Parties by reason of (a) ownership
        of
        this Security Instrument, the Assignment, the Property or any part thereof
        or
        any interest therein or receipt of any Rents; (b) any accident, injury to
        or
        death of any person or loss of or damage to property occurring in, on or
        about
        the Property or any part thereof or on the adjoining sidewalks, curbs, parking
        areas, streets or ways; (c) any use, nonuse or condition in, on or about,
        or
        possession, alteration, repair, operation, maintenance or management of,
        the
        Property or any part thereof or on the adjoining sidewalks, curbs, parking
        areas, streets or ways; (d) any failure on the part of Borrower to perform
        or
        comply with any of the terms of this Security Instrument or the Assignment;
        (e)
        performance of any labor or services or the furnishing of any materials or
        other
        property in respect of the Property or any part thereof; (f) any claim by
        brokers, finders or similar Persons claiming to be entitled to a commission
        in
        connection with any Lease or other transaction involving the Property or
        any
        part thereof; (g) any Imposition including, without limitation, any Imposition
        attributable to the execution, delivery, filing, or recording of any Loan
        Document, Lease or memorandum thereof; (h) any lien, security interest, or
        claim
        arising on or against the Property or any part thereof under any Legal
        Requirement or any liability asserted against any of the Indemnified Parties
        with respect thereto; (i) any claim arising out of or in any way relating
        to any
        tax or other imposition on the making and/or recording of this Security
        Instrument, the Note or any of the other Loan Documents unless otherwise
        set
        forth herein; (j) a Default under Sections 2.02(f) or 2.02(g) hereof, (k)
        the
        failure of any Person to file timely with the Internal Revenue Service an
        accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate,
        Broker and Barter Exchange Transactions, which may be required in connection
        with the Loan, or to supply a copy thereof in a timely fashion to the recipient
        of the proceeds of the Loan; or (l) the claims of any lessee or any Person
        acting through or under any lessee or otherwise arising under or as a
        consequence of any Lease prior to the time Lender may have taken possession
        of
        the Property. Notwithstanding the foregoing provisions of this Section 12.01
        to
        the contrary, Borrower shall have no obligation to indemnify the Indemnified
        Parties pursuant to this Section 12.01 for liabilities, obligations, claims,
        damages, penalties, causes of action, costs and expenses relative to the
        foregoing which result from Lender’s, and its successors’ or assigns’, willful
        misconduct or gross negligence. Any amounts payable to Lender by reason of
        the
        application of this Section 12.01 shall constitute a part of the Debt secured
        by
        this Security Instrument and the other Loan Documents and shall become
        immediately due and payable and shall bear interest at the Default Rate from
        the
        date the liability, obligation, claim, cost or expense is sustained by Lender,
        as applicable, until paid. The provisions of this Section 12.01 shall survive
        the termination of this Security Instrument whether by repayment of the Debt,
        foreclosure or delivery of a deed in lieu thereof, assignment or otherwise.
        In
        case any action, suit or proceeding is brought against any of the Indemnified
        Parties by reason of any occurrence of the type set forth in (a) through
        (l)
        above, Borrower shall, at Borrower’s expense, resist and defend such action,
        suit or proceeding or will cause the same to be resisted and defended by
        counsel
        at Borrower’s expense for the insurer of the liability or by counsel designated
        by Borrower (unless reasonably disapproved by Lender promptly after Lender
        has
        been notified of such counsel); provided,
        however,
        that
        nothing herein shall compromise the right of Lender (or any other Indemnified
        Party) to appoint its own counsel at Borrower’s expense for its defense with
        respect to any action which, in the reasonable opinion of Lender or such
        other
        Indemnified Party, as applicable, presents a conflict or potential conflict
        between Lender or such other Indemnified Party that would make such separate
        representation advisable. Any Indemnified Party will give Borrower prompt
        notice
        after such Indemnified Party obtains actual knowledge of any potential claim
        by
        such Indemnified Party for indemnification hereunder. The Indemnified Parties
        shall not settle or compromise any action, proceeding or claim as to which
        it is
        indemnified hereunder without notice to, and provided that no Event of Default
        has occurred and is continuing, consultation with, Borrower.

       

      
        
          
          

        

        
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      ARTICLE
        XIII: DEFAULTS

       

      Section
        13.01. Events
        of Default.
        The
        Debt shall become immediately due at the option of Lender upon any one or
        more
        of the following events (“Event
        of Default”):

       

      (a) if
        the
        final payment or prepayment premium, if any, due under the Note shall not
        be
        paid on Maturity;

       

      (b) if
        any
        monthly payment of interest and/or principal due under the Note (other than
        the
        sums described in (a) above) shall not be fully paid on the date upon which
        the
        same is due and payable thereunder;

       

      (c) if
        payment of any sum (other than the sums described in (a) above or (b) above)
        required to be paid pursuant to the Note, this Security Instrument or any
        other
        Loan Document shall not be paid within seven (7) Business Days after Lender
        delivers written notice to Borrower that same is due and payable thereunder
        or
        hereunder;

       

      (d) if
        Borrower, Guarantor or, if Borrower or Guarantor is a partnership, any general
        partner of Borrower or Guarantor, or, if Borrower or Guarantor is a limited
        liability company, any member of Borrower or Guarantor, shall institute or
        cause
        to be instituted any proceeding for the termination or dissolution of Borrower,
        Guarantor or any such general partner or member;

       

      (e) if
        the
        insurance policies required hereunder are not kept in full force and effect,
        or
        if the insurance policies are not assigned and delivered to Lender as herein
        provided;

       

      (f) if
        Borrower or Guarantor attempts to assign its rights under this Security
        Instrument or any other Loan Document or any interest herein or therein,
        or if
        any Transfer occurs other than in accordance with the provisions
        hereof;

       

      (g) if
        any
        representation or warranty of Borrower or Guarantor made herein or in any
        other
        Loan Document or in any certificate, report, financial statement or other
        instrument or agreement furnished to Lender shall prove false or misleading
        in
        any material respect as of the date the representation or warranty was
        made;

       

      (h) if
        Borrower, Guarantor or any general partner of Borrower or Guarantor shall
        make
        an assignment for the benefit of creditors or shall admit in writing its
        inability to pay its debts generally as they become due;

       

      (i) if
        a
        receiver, liquidator or trustee of Borrower, Guarantor or any general partner
        of
        Borrower or Guarantor shall be appointed or if Borrower, Guarantor or their
        respective general partners shall be adjudicated a bankrupt or insolvent,
        or if
        any petition for bankruptcy, reorganization or arrangement pursuant to federal
        bankruptcy law, or any similar federal or state law, shall be filed by or
        against, consented to by, or acquiesced in by, Borrower, Guarantor or their
        respective general partners or if any proceeding for the dissolution or
        liquidation of Borrower, Guarantor or their respective general partners shall
        be
        instituted; however, if such appointment, adjudication, petition or proceeding
        was involuntary and not consented to by Borrower, Guarantor or their respective
        general partners, as applicable, upon the same not being discharged, stayed
        or
        dismissed within sixty (60) days or if Borrower, Guarantor or their respective
        general partners shall generally not be paying its debts as they become
        due;

      
        
          
          

        

        
          -79-

          
            

          

        

        
          
          

        

      

       

      (j) if
        Borrower shall be in default beyond any notice or grace period, if any, under
        any other mortgage or deed of trust or deed to secure debt or security agreement
        covering any part of the Property without regard to its priority relative
        to
        this Security Instrument; provided, however, this provision shall not be
        deemed
        a waiver of the provisions of Article IX prohibiting further encumbrances
        affecting the Property or any other provision of this Security
        Instrument;

       

      (k) if
        the
        Property becomes subject (i) to any lien or security interest which is superior
        to the lien of this Security Instrument, other than a lien for real estate
        taxes
        and assessments not due and payable, or (ii) to any mechanic’s, materialman’s or
        other lien which is or is asserted to be superior to the lien of this Security
        Instrument, and such lien shall remain undischarged (by payment, bonding,
        or
        otherwise) for ten (10) days unless contested in accordance with the terms
        hereof; 

       

      (l) if
        Borrower discontinues the operation of the Property or any part thereof for
        reasons other than repair or restoration arising from a casualty or condemnation
        for ten (10) days or more; 

       

      (m) except
        as
        permitted in this Security Instrument, any material alteration, demolition
        or
        removal by, on behalf or with the consent of Borrower of any of the Improvements
        without the prior consent of Lender;

       

      (n) if
        Borrower consummates a transaction which would cause this Security Instrument
        or
        Lender’s rights under this Security Instrument, the Note or any other Loan
        Document to constitute a non-exempt prohibited transaction under ERISA or
        result
        in a violation of a state statute regulating government plans subjecting
        Lender
        to liability for a violation of ERISA or a state statute;

       

      (o) Intentionally
        Deleted;

       

      (p) if
        Borrower breaches any provision of Article IX or Section 2.02(g) of this
        Security Instrument; or

       

      (q) if
        a
        default shall occur under any of the other terms, covenants or conditions
        of the
        Note, this Security Instrument or any other Loan Document, other than as
        set
        forth in (a) through (p) above, for ten (10) days after notice from Lender
        in
        the case of any default which can be cured by the payment of a sum of money,
        or
        for thirty (30) days after notice from Lender in the case of any other default
        or an additional ninety (90) days if Borrower is diligently and continuously
        effectuating a cure of a curable non-monetary default, other than as set
        forth
        in (a) through (p) above.

       

      
        
          
            
            

          

          
            -80-

            
              

            

          

          
            
            

          

        

      

       

      Section
        13.02. Remedies. (a)
        Upon
        the occurrence and during the continuance of any Event of Default, Lender
        may,
        in addition to any other rights or remedies available to it hereunder or
        under
        any other Loan Document, at law or in equity, take such action, without notice
        or demand, as it reasonably deems advisable to protect and enforce its rights
        against Borrower and in and to the Property including, but not limited to,
        the
        following actions, each of which may be pursued singly, concurrently or
        otherwise, at such time and in such order as Lender may determine, in its
        sole
        discretion, without impairing or otherwise affecting any other rights and
        remedies of Lender hereunder, at law or in equity: declare all or any portion
        of
        the unpaid Debt to be immediately due and payable; provided, however, that
        upon
        the occurrence of any of the events specified in Section 13.01(i), the entire
        Debt will be immediately due and payable without notice or demand or any
        other
        declaration of the amounts due and payable; but subject to the rights of
        the
        tenants under the Leases, enter into or upon the Property or any part thereof,
        either personally or by its agents, nominees or attorneys, and dispossess
        Borrower and its agents and servants therefrom, and thereupon Lender may
        (A)
        use, operate, manage, control, insure, maintain, repair, restore and otherwise
        deal with all and every part of the Property and conduct the business thereat,
        (B) make alterations, additions, renewals, replacements and improvements
        to or
        on the Property or any part thereof, (C) exercise all rights and powers of
        Borrower with respect to the Property or any part thereof, 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 earnings, revenues, rents, issues, profits and other
        income of the Property and every part thereof, and (D) apply the receipts
        from
        the Property or any part thereof to the payment of the Debt, after deducting
        therefrom all expenses (including, without limitation, reasonable attorneys’
fees and disbursements) reasonably incurred in connection with the aforesaid
        operations and all amounts necessary to pay the Impositions, insurance and
        other
        charges in connection with the Property or any part thereof, as well as just
        and
        reasonable compensation for the services of Lender’s third-party agents; or
        (iii) have an appraisal or other valuation of the Property or any part thereof
        performed by an Appraiser (and Borrower covenants and agrees it shall cooperate
        in causing any such valuation or appraisal to be performed) and any cost
        or
        expense incurred by Lender in connection therewith shall constitute a portion
        of
        the Debt and be secured by this Security Instrument and shall be immediately
        due
        and payable to Lender with interest, at the Default Rate, until the date
        of
        receipt by Lender; or (iv), sell the Property or institute, or instruct Trustee
        to institute, proceedings for the complete foreclosure of this Security
        Instrument, or take such other action as may be allowed pursuant to Legal
        Requirements, at law or in equity, for the enforcement of this Security
        Instrument in which case the Property or any part thereof may be sold for
        cash
        or credit in one or more parcels; or (v) with or without entry, and to the
        extent permitted and pursuant to the procedures provided by applicable Legal
        Requirements, institute proceedings for the partial foreclosure of this Security
        Instrument, or take such other action as may be allowed pursuant to Legal
        Requirements, at law or in equity, for the enforcement of this Security
        Instrument for the portion of the Debt then due and payable, subject to the
        lien
        of this Security Instrument continuing unimpaired and without loss of priority
        so as to secure the balance of the Debt not then due; or (vi) sell the Property
        or any part thereof and any or all estate, claim, demand, right, title and
        interest of Borrower therein and rights of redemption thereof, pursuant to
        power
        of sale or otherwise, at one or more sales, in whole or in parcels, in any
        order
        or manner, at such time and place, upon such terms and after such notice
        thereof
        as may be required or permitted by law, at the discretion of Lender, and
        in the
        event of a sale, by foreclosure or otherwise, of less than all of the Property,
        this Security Instrument shall continue as a lien on the remaining portion
        of
        the Property; or (vii) institute an action, suit or proceeding in equity
        for the
        specific performance of any covenant, condition or agreement contained in
        the
        Loan Documents, or any of them; or (viii) recover judgment on the Note or
        any
        guaranty either before, during or
        after
        (or in lieu of) any proceedings for the enforcement of this Security Instrument;
        (ix) require, at Lender's option, Borrower to pay monthly in advance to Lender,
        or any receiver appointed to collect the Rents, the fair and reasonable rental
        value for the use and occupation of any portion of the Property occupied
        by
        Borrower and may require Borrower to vacate and surrender possession to Lender
        of the Property or to such receiver and Borrower may be evicted by summary
        proceedings or otherwise; or (i) without notice to Borrower (A) apply all
        or any
        portion of the cash collateral in any Sub-Account and Escrow Account, including
        any interest and/or earnings therein, to carry out the obligations of Borrower
        under this Security Instrument and the other Loan Documents, to protect and
        preserve the Property and for any other purpose permitted under this Security
        Instrument and the other Loan Documents and/or (B) have all or any portion
        of
        such cash collateral immediately paid to Lender to be applied against the
        Debt
        in the order and priority set forth in the Note; or (xi) pursue any or all
        such
        other rights or remedies as Lender may have under applicable law or in equity;
        provided, however, that the provisions of this Section 13.02(a) shall not
        be
        construed to extend or modify any of the notice requirements or grace periods
        provided for hereunder or under any of the other Loan Documents. Borrower
        hereby
        waives, to the fullest extent permitted by Legal Requirements, any defense
        Borrower might otherwise raise or have by the failure to make any tenants
        parties defendant to a foreclosure proceeding and to foreclose their rights
        in
        any proceeding instituted by Lender. 

       

      
        
          
          

        

        
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      (b) Any
        time
        after an Event of Default Lender shall have the power, to the extent permitted
        by applicable law, to sell the Property or any part thereof at public auction,
        in such manner, at such time and place, upon such terms and conditions, and
        upon
        such public notice as Lender may deem best for the interest of Lender, or
        as may
        be required or permitted by applicable law, consisting of advertisement (if
        required by law) in a newspaper of general circulation in the jurisdiction
        and
        for such period as applicable law may require and at such other times and
        under
        the power of sale herein granted or by such other methods, if any, as may
        be
        required or permitted by law to convey the Property or portions thereof in
        one
        or more sales in fee simple by Lender’s deed to and at the cost of the
        purchaser, who shall not be liable to see to the application of the purchase
        money. The proceeds or avails of any sale made under or by virtue of this
        Section 13.02, together with any other sums which then may be held by Lender
        under this Security Instrument, whether under the provisions of this Section
        13.02 or otherwise, shall, to the extent permitted by applicable law, be
        applied
        as follows:

       

      First:
        To
        the payment of the third-party costs and expenses reasonably incurred in
        connection with any such sale and to advances, fees and expenses, including,
        without limitation, title service guaranty fees, reasonable fees and expenses
        of
        Lender’s legal counsel as applicable, and of any judicial proceedings wherein
        the same may be made, and of all expenses, liabilities and advances reasonably
        made or incurred by Lender under this Security Instrument, together with
        interest as provided herein on all such advances made by Lender, and all
        Impositions, except any Impositions or other charges subject to which the
        Property shall have been sold;

       

      Second:
        To the payment of the whole amount then due, owing and unpaid under the Note
        for
        principal and interest thereon, with interest on such unpaid principal at
        the
        Default Rate from the date of the occurrence of the earliest Event of Default
        that formed a basis for such sale until the same is paid;

       

      Third:
        To
        the payment of any other portion of the Debt required to be paid by Borrower
        pursuant to any provision of this Security Instrument, the Note, or any of
        the
        other Loan Documents; and

       

      Fourth:
        The surplus, if any, to Borrower or such other Persons as may be legally
        entitled thereto, unless otherwise required by Legal Requirements.

       

      Lender
        and any receiver or custodian of the Property or any part thereof shall be
        liable to account for only those rents, issues, proceeds and profits actually
        received by it.

       

      (c) Lender
        may adjourn from time to time any sale by it to be made under or by virtue
        of
        this Security Instrument by announcement at the time and place appointed
        for
        such sale or for such adjourned sale or sales and, except as otherwise provided
        by any applicable provision of Legal Requirements, Lender, without further
        notice or publication, may make such sale at the time and place to which
        the
        same shall be so adjourned.

      
        
          
          

        

        
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      (d) Upon
        the
        completion of any sale or sales made by Lender under or by virtue of this
        Section 13.02, Lender or any officer of any court empowered to do so, shall
        execute and deliver to the accepted purchaser or purchasers a good and
        sufficient instrument, or good and sufficient instruments, granting, conveying,
        assigning and transferring all estate, right, title and interest in and to
        the
        property and rights sold. Lender is hereby irrevocably appointed the true
        and
        lawful attorney-in-fact of Borrower (coupled with an interest), in its name
        and
        stead, to make all necessary conveyances, assignments, transfers and deliveries
        of the property and rights so sold pursuant to this Section 13.02 and for
        that
        purpose Lender may execute all necessary instruments of conveyance, assignment,
        transfer and delivery, and may substitute one or more Persons with like power,
        Borrower hereby ratifying and confirming all that its said attorney-in-fact
        or
        such substitute or substitutes shall lawfully do by virtue hereof. Nevertheless,
        Borrower, if so requested by Lender, shall ratify and confirm any such sale
        or
        sales by executing and delivering to Lender, or to such purchaser or purchasers
        all such instruments as may be advisable, in the sole judgment of Lender,
        for
        such purpose, and as may be designated in such request. Any such sale or
        sales
        made under or by virtue of this Section 13.02, whether made under the power
        of
        sale herein granted or under or by virtue of judicial proceedings or a judgment
        or decree of foreclosure and sale, shall operate to divest all the estate,
        right, title, interest, claim and demand whatsoever, whether at law or in
        equity, of Borrower in and to the property and rights so sold, and shall,
        to the
        fullest extent permitted under Legal Requirements, be a perpetual bar, both
        at
        law and in equity against Borrower and against any and all Persons claiming
        or
        who may claim the same, or any part thereof, from, through or under
        Borrower.

       

      (e) In
        the
        event of any sale made under or by virtue of this Section 13.02 (whether
        made
        under the power of sale herein granted or under or by virtue of judicial
        proceedings or a judgment or decree of foreclosure and sale), the entire
        Debt
        immediately thereupon shall, anything in the Loan Documents to the contrary
        notwithstanding, become due and payable.

       

      (f) Upon
        any
        sale made under or by virtue of this Section 13.02 (whether made under the
        power
        of sale herein granted or under or by virtue of judicial proceedings or a
        judgment or decree of foreclosure and sale), Lender may bid for and acquire
        the
        Property or any part thereof and in lieu of paying cash therefor may make
        settlement for the purchase price by crediting upon the Debt the net sales
        price
        after deducting therefrom the expenses of the sale and the costs of the
        action.

       

      (g) No
        recovery of any judgment by Lender and no levy of an execution under any
        judgment upon the Property or any part thereof or upon any other property
        of
        Borrower shall release the lien of this Security Instrument upon the Property
        or
        any part thereof, or any liens, rights, powers or remedies of Lender hereunder,
        but such liens, rights, powers and remedies of Lender shall continue unimpaired
        until all amounts due under the Note, this Security Instrument and the other
        Loan Documents are paid in full.

       

      (h) Upon
        the
        exercise by Lender of any power, right, privilege, or remedy pursuant to
        this
        Security Instrument which requires any consent, approval, registration,
        qualification, or authorization of any Governmental Authority, Borrower agrees
        to execute and deliver, or will cause the execution and delivery of, all
        applications, certificates, instruments, assignments and other documents
        and
        papers that Lender or any purchaser of the Property may be required to obtain
        for such governmental consent, approval, registration, qualification, or
        authorization and Lender is hereby irrevocably appointed the true and lawful
        attorney-in-fact of Borrower (coupled with an interest), in its name and
        stead,
        to execute all such applications, certificates, instruments, assignments
        and
        other documents and papers.

      
        
          
          

        

        
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      Section
        13.03. Payment
        of Debt After Default.
        If,
        following the occurrence of any Event of Default, Borrower shall tender payment
        of an amount sufficient to satisfy the Debt in whole or in part at any time
        prior to a foreclosure sale of the Property, and if at the time of such tender
        prepayment of the principal balance of the Note is not permitted by the Note
        or
        this Security Instrument, Borrower shall, in addition to the entire Debt,
        also
        pay to Lender all amounts due Lender under Section 1.5(b) of the Note. If
        at the
        time of such tender, prepayment of the principal balance of the Note is
        permitted, such tender by Borrower shall be deemed to be a voluntary prepayment
        of the principal balance of the Note and Borrower shall, in addition to the
        entire Debt, also pay to Lender the applicable prepayment consideration
        specified in the Note and this Security Instrument.

       

      Section
        13.04. Possession
        of the Property.
        Upon
        the occurrence of any Event of Default hereunder and the acceleration of
        the
        Debt or any portion thereof, Borrower, if an occupant of the Property or
        any
        part thereof, upon demand of Lender, shall immediately surrender possession
        of
        the Property (or the portion thereof so occupied) to Lender, and if Borrower
        is
        permitted to remain in possession, the possession shall be as a month-to-month
        tenant of Lender and, on demand, Borrower shall pay to Lender monthly, in
        advance, a reasonable rental for the space so occupied and in default thereof
        Borrower may be dispossessed. The covenants herein contained may be enforced
        by
        a receiver of the Property or any part thereof. Nothing in this Section 13.04
        shall be deemed to be a waiver of the provisions of this Security Instrument
        making the Transfer of the Property or any part thereof without Lender’s prior
        written consent an Event of Default.

       

      Section
        13.05. Interest
        After Default.
        If any
        amount due under the Note, this Security Instrument or any of the other Loan
        Documents is not paid within any applicable notice and grace period after
        same
        is due, whether such date is the stated due date, any accelerated due date
        or
        any other date or at any other time specified under any of the terms hereof
        or
        thereof, then, in such event, Borrower shall pay interest on the amount not
        so
        paid from and after the date on which such amount first becomes due at the
        Default Rate; and such interest shall be due and payable at such rate until
        the
        earlier of the cure of all Events of Default or the payment of the entire
        amount
        due to Lender, whether or not any action shall have been taken or proceeding
        commenced to recover the same or to foreclose this Security Instrument. All
        unpaid and accrued interest shall be secured by this Security Instrument
        as part
        of the Debt. Nothing in this Section 13.05 or in any other provision of this
        Security Instrument shall constitute an extension of the time for payment
        of the
        Debt.

       

      Section
        13.06. Borrower’s
        Actions After Default.
        After
        the happening of any Event of Default and immediately upon the commencement
        of
        any action, suit or other legal proceedings by Lender to obtain judgment
        for the
        Debt, or of any other nature in aid of the enforcement of the Loan Documents,
        Borrower will (a) after receipt of notice of the institution of any such
        action,
        waive the issuance and service of process and enter its voluntary appearance
        in
        such action, suit or proceeding, and (b) if required by Lender, consent to
        the
        appointment of a receiver or receivers of the Property or any part thereof
        and
        of all the earnings, revenues, rents, issues, profits and income
        thereof. 

      
        
          
          

        

        
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      Section
        13.07. Control
        by Lender After Default.
        Notwithstanding the appointment of any custodian, receiver, liquidator or
        trustee of Borrower, or of any of its property, or of the Property or any
        part
        thereof, to the extent permitted by Legal Requirements, Lender shall be entitled
        to obtain possession and control of all property now and hereafter covered
        by
        this Security Instrument and the Assignment following the occurrence of an
        Event
        of Default in accordance with the terms hereof.

       

      Section
        13.08. Right
        to Cure Defaults.
        (a)
Upon
        the
        occurrence of any Event of Default, Lender or its agents may, but without
        any
        obligation to do so and without notice to or demand on Borrower and without
        releasing Borrower from any obligation hereunder, make or do the same in
        such
        manner and to such extent as Lender may deem necessary to protect the security
        hereof. Lender and its agents are authorized to enter upon the Property or
        any
        part thereof for such purposes, or appear in, defend, or bring any action
        or
        proceedings to protect Lender’s interest in the Property or any part thereof or
        to foreclose this Security Instrument or collect the Debt, and the cost and
        expense thereof (including reasonable attorneys’ fees to the extent permitted by
        law), with interest as provided in this Section 13.08, shall constitute a
        portion of the Debt and shall be immediately due and payable to Lender upon
        demand. All such costs and expenses incurred by Lender or its agents in
        remedying such Event of Default or in appearing in, defending, or bringing
        any
        such action or proceeding shall bear interest at the Default Rate, for the
        period from the date so demanded to the date of payment to Lender. All such
        costs and expenses incurred by Lender or its agents together with interest
        thereon calculated at the above rate shall be deemed to constitute a portion
        of
        the Debt and be secured by this Security Instrument.

       

      (b) If
        Lender
        makes any payment or advance that Lender is authorized by this Security
        Instrument to make in the place and stead of Borrower (i) relating to the
        Impositions or tax liens asserted against the Property, Lender may do so
        according to any bill, statement or estimate procured from the appropriate
        public office without inquiry into the accuracy of the bill, statement or
        estimate or into the validity of any of the Impositions or the tax liens
        or
        claims thereof; (ii) relating to any apparent or threatened adverse title,
        lien,
        claim of lien, encumbrance, claim or charge, Lender will be the sole judge
        of
        the legality or validity of same; or (iii) relating to any other purpose
        authorized by this Security Instrument but not enumerated in this Section
        13.08,
        Lender may do so whenever, in its judgment and discretion, the payment or
        advance seems necessary or desirable to protect the Property and the full
        security interest intended to be created by this Security Instrument. In
        connection with any payment or advance made pursuant to this Section 13.08,
        Lender has the option and is authorized, but in no event shall be obligated,
        to
        obtain a continuation report of title prepared by a title insurance company.
        The
        payments and the advances made by Lender pursuant to this Section 13.08 and
        the
        cost and expenses of said title report will be due and payable by Borrower
        on
        demand, together with interest at the Default Rate, and will be secured by
        this
        Security Instrument.

       

      Section
        13.09. Late
        Payment Charge.
        If any
        portion of the Debt is not paid in full on or before the day on which it
        is due
        and payable hereunder Borrower shall pay to Lender an amount equal to five
        percent (5%) of such unpaid portion of the Debt (“Late
        Charge”)
        to
        defray the expense incurred by Lender in handling and processing such delinquent
        payment, and such amount shall constitute a part of the Debt; provided, that
        no
        late charge shall be due and payable if Borrower fails to repay the Loan
        evidenced hereby upon the Maturity Date (whether by acceleration or
        otherwise). 

      
        
          
          

        

        
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      Section
        13.10. Recovery
        of Sums Required to Be Paid.
        Lender
        shall have the right from time to time to take action to recover any sum
        or sums
        which constitute a part of the Debt as the same become due and payable hereunder
        (after the expiration of any grace period or the giving of any notice herein
        provided, if any), without regard to whether or not the balance of the Debt
        shall be due, and without prejudice to the right of Lender thereafter to
        bring
        an action of foreclosure, or any other action, for a default or defaults
        by
        Borrower existing at the time such earlier action was commenced.

       

      Section
        13.11. Marshalling
        and Other Matters.
        Borrower hereby waives, to the fullest extent permitted by law, the benefit
        of
        all appraisement, valuation, stay, extension, reinstatement, redemption (both
        equitable and statutory) and homestead laws now or hereafter in force and
        all
        rights of marshalling in the event of any sale hereunder of the Property
        or any
        part thereof or any interest therein. Further, Borrower hereby expressly
        waives
        any and all rights of redemption from sale under any order or decree of
        foreclosure of this Security Instrument on behalf of Borrower, whether equitable
        or statutory and on behalf of each and every Person acquiring any interest
        in or
        title to the Property or any part thereof subsequent to the date of this
        Security Instrument and on behalf of all Persons to the fullest extent permitted
        by applicable law.

       

      Section
        13.12. Tax
        Reduction Proceedings.
        After
        an Event of Default, Borrower shall be deemed to have appointed Lender as
        its
        attorney-in-fact to seek a reduction or reductions in the assessed valuation
        of
        the Property for real property tax purposes or for any other purpose and
        to
        prosecute any action or proceeding in connection therewith. This power, being
        coupled with an interest, shall be irrevocable for so long as any part of
        the
        Debt remains unpaid and any Event of Default shall be continuing.

       

      Section
        13.13. General
        Provisions Regarding Remedies.

       

      (a) Right
        to Terminate Proceedings.
        Lender
        may terminate or rescind any proceeding or other action brought in connection
        with its exercise of the remedies provided in Section 13.02 at any time before
        the conclusion thereof, as determined in Lender’s sole discretion and without
        prejudice to Lender.

       

      (b) No
        Waiver or Release.
        The
        failure of Lender to exercise any right, remedy or option provided in the
        Loan
        Documents shall not be deemed a waiver of such right, remedy or option or
        of any
        covenant or obligation contained in the Loan Documents. No acceptance by
        Lender
        of any payment after the occurrence of an Event of Default and no payment
        by
        Lender of any payment or obligation for which Borrower is liable hereunder
        shall
        be deemed to waive or cure any Event of Default. No sale of all or any portion
        of the Property, no forbearance on the part of Lender, and no extension of
        time
        for the payment of the whole or any portion of the Debt or any other indulgence
        given by Lender to Borrower or any other Person, shall operate to release
        or in
        any manner affect the interest of Lender in the Property or the liability
        of
        Borrower to pay the Debt. No waiver by Lender shall be effective unless it
        is in
        writing and then only to the extent specifically stated.

      
        
          
          

        

        
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      (c) No
        Impairment; No Releases.
        The
        interests and rights of Lender under the Loan Documents shall not be impaired
        by
        any indulgence, including (i) any renewal, extension or modification which
        Lender may grant with respect to any of the Debt; (ii) any surrender,
        compromise, release, renewal, extension, exchange or substitution which Lender
        may grant with respect to the Property or any portion thereof; or (iii) any
        release or indulgence granted to any maker, endorser, guarantor or surety
        of any
        of the Debt.

       

      ARTICLE
        XIV: COMPLIANCE
        WITH REQUIREMENTS

       

      Section
        14.01. Compliance
        with Legal Requirements.
        (a)
Borrower
        shall promptly comply with all present and future Legal Requirements, foreseen
        and unforeseen, ordinary and extraordinary, whether requiring structural
        or
        nonstructural repairs or alterations including, without limitation, all zoning,
        subdivision, building, safety and environmental protection, land use and
        development Legal Requirements, all Legal Requirements which may be applicable
        to the curbs adjoining the Property or to the use or manner of use thereof,
        and
        all rent control, rent stabilization and all other similar Legal Requirements
        relating to rents charged and/or collected in connection with the Leases.
        Borrower represents and warrants that the Property to the best of Borrower’s
        knowledge is in compliance in all material respects with all Legal Requirements
        as of the date hereof, no notes or notices of violations of any Legal
        Requirements have been entered or received by Borrower and there is no basis
        for
        the entering of such notes or notices.

       

      (b) Borrower
        shall have the right to contest by appropriate legal proceedings diligently
        conducted in good faith, without cost or expense to Lender, the validity
        or
        application of any Legal Requirement and to suspend compliance therewith
        if
        permitted under applicable Legal Requirements, provided (i) failure to comply
        therewith may not subject Lender to any civil or criminal liability, (ii)
        prior
        to and during such contest, Borrower shall furnish to Lender security reasonably
        satisfactory to Lender, in its discretion, against loss or injury by reason
        of
        such contest or non-compliance with such Legal Requirement, (iii) no Default
        or
        Event of Default shall exist during such proceedings and such contest shall
        not
        otherwise violate any of the provisions of any of the Loan Documents, (iv)
        such
        contest shall not (unless Borrower shall comply with the provisions of clause
        (ii) of this Section 14.01(b)) subject the Property to any lien or encumbrance
        the enforcement of which is not suspended or otherwise affect the priority
        of
        the lien of this Security Instrument; (v) such contest shall not affect the
        ownership, use or occupancy of the Property; (vi) the Property or any part
        thereof or any interest therein shall not be in any danger of being sold,
        forfeited or lost by reason of such contest by Borrower; (vii) Borrower shall
        give Lender prompt notice of the commencement of such proceedings and, upon
        request by Lender, notice of the status of such proceedings and/or confirmation
        of the continuing satisfaction of the conditions set forth in clauses (i)
        - (vi)
        of this Section 14.01(b); and (viii) upon a final determination of such
        proceeding, Borrower shall take all steps necessary to comply with any
        requirements arising therefrom.

       

      (c) Borrower
        shall at all times comply with all applicable Legal Requirements with respect
        to
        the construction, use and maintenance of any vaults adjacent to the Property.
        If
        by reason of the failure to pay taxes, assessments, charges, permit fees,
        franchise taxes or levies of any kind or nature, the continued use of the
        vaults
        adjacent to Property or any part thereof is discontinued, Borrower nevertheless
        shall, with respect to any vaults which may be necessary for the continued
        use
        of the Property, take such steps (including the making of any payment) to
        ensure
        the continued use of vaults or replacements.

      
        
          
          

        

        
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      Section
        14.02. Compliance
        with Recorded Documents; No Future Grants.
        Borrower shall promptly perform and observe or cause to be performed and
        observed, all of the terms, covenants and conditions of all Property Agreements
        and all things necessary to preserve intact and unimpaired any and all
        appurtenances or other interests or rights affecting the Property.

       

      ARTICLE
        XV: PREPAYMENT

       

      Section
        15.01. Prepayment.
         Except
        as
        set forth in Section 1.5 of the Note, no prepayment of the Debt may be made
        in
        whole or in part.

       

      ARTICLE
        XVI: ENVIRONMENTAL
        COMPLIANCE

       

      Section
        16.01. Covenants,
        Representations and Warranties.
        (a)
        Borrower
        has not, at any time, and, to Borrower’s best knowledge after due inquiry and
        investigation, except as set forth in the Environmental Report, no other
        Person
        has at any time, handled, buried, stored, retained, refined, transported,
        processed, manufactured, generated, produced, spilled, allowed to seep, leak,
        escape or leach, or pumped, poured, emitted, emptied, discharged, injected,
        dumped, transferred or otherwise disposed of or dealt with Hazardous Materials
        on, to or from the Premises or any other real property owned and/or occupied
        by
        Borrower (other than in compliance with all Legal Requirements), and Borrower
        does not intend to and shall not use the Property or any part thereof or
        any
        such other real property for the purpose of handling, burying, storing,
        retaining, refining, transporting, processing, manufacturing, generating,
        producing, spilling, seeping, leaking, escaping, leaching, pumping, pouring,
        emitting, emptying, discharging, injecting, dumping, transferring or otherwise
        disposing of or dealing with Hazardous Materials, except for use and storage
        for
        use of heating oil, cleaning fluids, pesticides and other substances customarily
        used in the operation of properties that are being used for the same purposes
        as
        the Property is presently being used, provided such use and/or storage for
        use
        is in compliance with the requirements hereof and the other Loan Documents
        and
        does not give rise to liability under applicable Legal Requirements or
        Environmental Statutes or be the basis for a lien against the Property or
        any
        part thereof. In addition, without limitation to the foregoing provisions,
        Borrower represents and warrants that, to the best of its knowledge, after
        due
        inquiry and investigation, except as previously disclosed in writing to Lender
        or in the Environmental Report or Engineering Report, there is no asbestos
        in,
        on, over, or under all or any portion of the fire-proofing or any other portion
        of the Property.

       

      (b) Borrower,
        after due inquiry and investigation, knows of no seepage, leak, escape, leach,
        discharge, injection, release, emission, spill, pumping, pouring, emptying
        or
        dumping of Hazardous Materials into waters on, under or adjacent to the Property
        or any part thereof or any other real property owned and/or occupied by
        Borrower, or onto lands from which such Hazardous Materials might seep, flow
        or
        drain into such waters, except as disclosed in the Environmental
        Report.

      
        
          
          

        

        
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      (c) Borrower
        shall not permit any Hazardous Materials to be handled, buried, stored,
        retained, refined, transported, processed, manufactured, generated, produced,
        spilled, allowed to seep, leak, escape or leach, or to be pumped, poured,
        emitted, emptied, discharged, injected, dumped, transferred or otherwise
        disposed of or dealt with on, under, to or from the Property or any portion
        thereof at any time, except for use and storage for use of heating oil, ordinary
        cleaning fluids, pesticides and other substances customarily used in the
        operation of properties that are being used for the same purposes as the
        Property is presently being used, provided such use and/or storage for use
        is in
        compliance with the requirements hereof and the other Loan Documents and
        does
        not give rise to liability under applicable Legal Requirements or be the
        basis
        for a lien against the Property or any part thereof.

       

      (d) Borrower
        represents and warrants that no actions, suits, or proceedings have been
        commenced, or are pending, or to the best knowledge of Borrower, are threatened
        with respect to any Legal Requirement governing the use, manufacture, storage,
        treatment, transportation, or processing of Hazardous Materials with respect
        to
        the Property or any part thereof. Borrower has received no notice of, and,
        except as disclosed in the Environmental Report, after due inquiry, has no
        knowledge of any fact, condition, occurrence or circumstance which with notice
        or passage of time or both would give rise to a claim under or pursuant to
        any
        Environmental Statute pertaining to Hazardous Materials on, in, under or
        originating from the Property or any part thereof or any other real property
        owned or occupied by Borrower or arising out of the conduct of Borrower,
        including, without limitation, pursuant to any Environmental
        Statute.

       

      (e) Borrower
        has not waived any Person’s liability with regard to Hazardous Materials in, on,
        under or around the Property, nor has Borrower retained or assumed,
        contractually or by operation of law, any other Person’s liability relative to
        Hazardous Materials or any claim, action or proceeding relating
        thereto.

       

      (f) In
        the
        event that there shall be filed a lien against the Property or any part thereof
        pursuant to any Environmental Statute pertaining to Hazardous Materials,
        Borrower shall, within sixty (60) days or, in the event that the applicable
        Governmental Authority has commenced steps to cause the Premises or any part
        thereof to be sold pursuant to the lien, within fifteen (15) days, from the
        date
        that Borrower receives notice of such lien, either (i) pay the claim and
        remove
        the lien from the Property, or (ii) furnish (A) a bond satisfactory to Lender
        in
        the amount of the claim out of which the lien arises, (B) a cash deposit
        in the
        amount of the claim out of which the lien arises, or (C) other security
        reasonably satisfactory to Lender in an amount sufficient to discharge the
        claim
        out of which the lien arises.

       

      (g) Borrower
        represents and warrants that (i) except as disclosed in the Environmental
        Report, Borrower has no knowledge of any violation of any Environmental Statute
        or any Environmental Problem in connection with the Property, nor has Borrower
        been requested or required by any Governmental Authority to perform any remedial
        activity or other responsive action in connection with any Environmental
        Problem
        and (ii) neither the Property nor any other property owned by Borrower is
        included or, to Borrower’s best knowledge, after due inquiry and investigation,
        proposed for inclusion on the National Priorities List issued pursuant to
        CERCLA
        by the United States Environmental Protection Agency (the “EPA”)
        or on
        the inventory of other potential “Problem” sites issued by the EPA and has not
        otherwise been identified by the EPA as a potential CERCLA site or included
        or,
        to Borrower’s knowledge, after due inquiry and investigation, proposed for
        inclusion on any list or inventory issued pursuant to any other Environmental
        Statute, if any, or issued by any other Governmental Authority. Borrower
        covenants that Borrower will comply with all Environmental Statutes affecting
        or
        imposed upon Borrower or the Property.

      
        
          
          

        

        
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      (h) Borrower
        covenants that it shall promptly notify Lender of the presence and/or release
        of
        any Hazardous Materials and of any request for information or any inspection
        of
        the Property or any part thereof by any Governmental Authority with respect
        to
        any Hazardous Materials and provide Lender with copies of such request and
        any
        response to any such request or inspection. Borrower covenants that it shall,
        in
        compliance with applicable Legal Requirements, conduct and complete all
        investigations, studies, sampling and testing (and promptly shall provide
        Lender
        with copies of any such studies and the results of any such test) and all
        remedial, removal and other actions necessary to clean up and remove all
        Hazardous Materials in, on, over, under, from or affecting the Property or
        any
        part thereof in accordance with all such Legal Requirements applicable to
        the
        Property or any part thereof to the satisfaction of Lender.

       

      (i) Following
        the occurrence of an Event of Default that is continuing hereunder, and without
        regard to whether Lender shall have taken possession of the Property or a
        receiver has been requested or appointed or any other right or remedy of
        Lender
        has or may be exercised hereunder or under any other Loan Document, Lender
        shall
        have the right (but no obligation) to conduct such investigations, studies,
        sampling and/or testing of the Property or any part thereof as Lender may,
        in
        its discretion, determine to conduct, relative to Hazardous Materials. All
        costs
        and expenses incurred in connection therewith including, without limitation,
        consultants’ fees and disbursements and laboratory fees, shall constitute a part
        of the Debt and shall, upon demand by Lender, be immediately due and payable
        and
        shall bear interest at the Default Rate from the date so demanded by Lender
        until reimbursed. Borrower shall, at its sole cost and expense, fully and
        expeditiously cooperate in all such investigations, studies, samplings and/or
        testings including, without limitation, providing all relevant information
        and
        making knowledgeable people available for interviews.

       

      (j) Borrower
        represents and warrants that, except as disclosed in the Environmental Report,
        all paint and painted surfaces existing within the interior or on the exterior
        of the Improvements are not flaking, peeling, cracking, blistering, or chipping,
        and do not contain lead or are maintained in a condition that prevents exposure
        of young children to lead-based paint, as of the date hereof, and that the
        current inspections, operation, and maintenance program at the Property with
        respect to lead-based paint is consistent with FNMA guidelines and sufficient
        to
        ensure that all painted surfaces within the Property shall be maintained
        in a
        condition that prevents exposure of tenants to lead-based paint. To Borrower’s
        knowledge, there have been no claims for adverse health effects from exposure
        on
        the Property to lead-based paint or requests for the investigation, assessment
        or removal of lead-based paint at the Property.

       

      (k) Borrower
        represents and warrants that except in accordance with all applicable
        Environmental Statutes and as disclosed in the Environmental Report, (i)
        no
        underground treatment or storage tanks or pumps or water, gas, or oil wells
        are
        or have been located about the Property, (ii) no PCBs or transformers,
        capacitors, ballasts or other equipment that contain dielectric fluid containing
        PCBs are located about the Property, (iii) no insulating material containing
        urea formaldehyde is located about the Property and (iv) no asbestos-containing
        material is located about the Property.

       

      
        
          
          

        

        
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      (l) Environmental
        Indemnification.
        Borrower shall defend, indemnify and hold harmless the Indemnified Parties
        for,
        from and against any claims, demands, penalties, fines, liabilities,
        settlements, damages, costs and expenses of whatever kind or nature, known
        or
        unknown, contingent or otherwise, whether incurred or imposed within or outside
        the judicial process, including, without limitation, reasonable attorneys’ and
        consultants’ fees and disbursements and investigations and laboratory fees
        arising out of, or in any way related to any Environmental Problem, including
        without limitation:

       

      (a) the
        presence, disposal, escape, seepage, leakage, spillage, discharge, emission,
        release or threat of release of any Hazardous Materials in, on, over, under,
        from or affecting the Property or any part thereof whether or not disclosed
        by
        the Environmental Report;

       

      (b) any
        personal injury (including wrongful death, disease or other health condition
        related to or caused by, in whole or in part, any Hazardous Materials) or
        property damage (real or personal) arising out of or related to any Hazardous
        Materials in, on, over, under, from or affecting the Property or any part
        thereof whether or not disclosed by the Environmental Report;

       

      (c) any
        action, suit or proceeding brought or threatened, settlement reached, or
        order
        of any Governmental Authority relating to such Hazardous Material whether
        or not
        disclosed by the Environmental Report; and/or

       

      (d) any
        violation of the provisions, covenants, representations or warranties of
        Section
        16.01 hereof or of any Legal Requirement which is based on or in any way
        related
        to any Hazardous Materials in, on, over, under, from or affecting the Property
        or any part thereof including, without limitation, the cost of any work
        performed and materials furnished in order to comply therewith whether or
        not
        disclosed by the Environmental Report.

       

      Notwithstanding
        the foregoing provisions of this Section 16.02 to the contrary, Borrower
        shall
        have no obligation to indemnify Lender for liabilities, claims, damages,
        penalties, causes of action, costs and expenses relative to the foregoing
        which
        result directly from Lender’s willful misconduct or gross negligence. Any
        amounts payable to Lender by reason of the application of this Section 16.02
        shall be secured by this Security Instrument and shall, upon demand by Lender,
        become immediately due and payable and shall bear interest at the Default
        Rate
        from the date so demanded by Lender until paid.

       

      This
        indemnification shall survive the termination of this Security Instrument
        whether by repayment of the Debt, foreclosure or deed in lieu thereof,
        assignment, or otherwise. The indemnity provided for in this Section 16.02
        shall
        not be included in any exculpation of Borrower or its principals from personal
        liability provided for in this Security Instrument or in any of the other
        Loan
        Documents. Nothing in this Section 16.02 shall be deemed to deprive Lender
        of
        any rights or remedies otherwise available to Lender, including, without
        limitation, those rights and remedies provided elsewhere in this Security
        Instrument or the other Loan Documents. The foregoing indemnity shall
        specifically not include any such costs relating to Hazardous Materials which
        are initially placed on, in or under any of the Properties after foreclosure
        or
        other taking of title of such Properties by Lender or its successors or
        assigns.

       

      
        
          
          

        

        
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      ARTICLE
        XVII: ASSIGNMENTS

       

      Section
        17.01. Participations
        and Assignments.
        Lender
        shall have the right to assign this Security Instrument and/or any of the
        Loan
        Documents, and to transfer, assign or sell participations and subparticipations
        (including blind or undisclosed participations and subparticipations) in
        the
        Loan Documents and the obligations hereunder to any Person; provided, however,
        that no such participation shall increase, decrease or otherwise affect either
        Borrower’s or Lender’s obligations under this Security Instrument or the other
        Loan Documents or increase the Debt.

       

      ARTICLE
        XVIII: MISCELLANEOUS

       

      Section
        18.01. Right
        of Entry.
        Lender
        and its agents shall have the right to enter and inspect the Property or
        any
        part thereof at all reasonable times, and, except in the event of an emergency,
        upon reasonable notice and to inspect Borrower’s books and records and to make
        abstracts and reproductions thereof.

       

      Section
        18.02. Cumulative
        Rights.
        The
        rights of Lender under this Security Instrument shall be separate, distinct
        and
        cumulative and none shall be given effect to the exclusion of the others.
        No act
        of Lender shall be construed as an election to proceed under any one provision
        herein to the exclusion of any other provision. Lender shall not be limited
        exclusively to the rights and remedies herein stated but shall be entitled,
        subject to the terms of this Security Instrument, to every right and remedy
        now
        or hereafter afforded by law.

       

      Section
        18.03. Liability.
        If
        Borrower consists of more than one Person, the obligations and liabilities
        of
        each such Person hereunder shall be joint and several.

       

      Section
        18.04. Exhibits
        Incorporated.
        The
        information set forth on the cover hereof, and the Exhibits annexed hereto,
        are
        hereby incorporated herein as a part of this Security Instrument with the
        same
        effect as if set forth in the body hereof.

       

      Section
        18.05. Severable
        Provisions.
        If any
        term, covenant or condition of the Loan Documents including, without limitation,
        the Note or this Security Instrument, is held to be invalid, illegal or
        unenforceable in any respect, such Loan Document shall be construed without
        such
        provision.

       

      Section
        18.06. Duplicate
        Originals.
        This
        Security Instrument may be executed in any number of duplicate originals
        and
        each such duplicate original shall be deemed to constitute but one and the
        same
        instrument.

       

      Section
        18.07. No
        Oral Change.
        The
        terms of this Security Instrument, together with the terms of the Note and
        the
        other Loan Documents, constitute the entire understanding and agreement of
        the
        parties hereto and supersede all prior agreements, understandings and
        negotiations between Borrower and Lender with respect to the Loan. This Security
        Instrument, and any provisions hereof, may not be modified, amended, waived,
        extended, changed, discharged or terminated orally or by any act on the part
        of
        Borrower or Lender, but only by an agreement in writing signed by the party
        against whom enforcement of any modification, amendment, waiver, extension,
        change, discharge or termination is sought.

       

      
        
          
          

        

        
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      Section
        18.08. Waiver
        of Counterclaim, Etc.
        BORROWER HEREBY WAIVES THE RIGHT TO ASSERT A COUNTERCLAIM, OTHER THAN A
        COMPULSORY COUNTERCLAIM, IN ANY ACTION OR PROCEEDING BROUGHT AGAINST IT BY
        LENDER OR ITS AGENTS, AND WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING
        BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER OR IN ANY COUNTERCLAIM BORROWER
        MAY BE PERMITTED TO ASSERT HEREUNDER OR WHICH MAY BE ASSERTED BY LENDER OR
        ITS
        AGENTS, AGAINST BORROWER, OR IN ANY MATTERS WHATSOEVER ARISING OUT OF OR
        IN ANY
        WAY CONNECTED WITH THIS SECURITY INSTRUMENT OR THE DEBT.

       

      Section
        18.09. Headings;
        Construction of Documents; etc.
        The
        table of contents, headings and captions of various paragraphs of this Security
        Instrument are for convenience of reference only and are not to be construed
        as
        defining or limiting, in any way, the scope or intent of the provisions hereof.
        Borrower acknowledges that it was represented by competent counsel in connection
        with the negotiation and drafting of this Security Instrument and the other
        Loan
        Documents and that neither this Security Instrument nor the other Loan Documents
        shall be subject to the principle of construing the meaning against the Person
        who drafted same.

       

      Section
        18.10. Sole
        Discretion of Lender.
        Whenever Lender exercises any right given to it to approve or disapprove,
        or any
        arrangement or term is to be satisfactory to Lender, the decision of Lender
        to
        approve or disapprove or to decide that arrangements or terms are satisfactory
        or not satisfactory shall be in the sole discretion of Lender and shall be
        final
        and conclusive, except as may be otherwise specifically provided
        herein.

       

      Section
        18.11. Waiver
        of Notice.
        Borrower shall not be entitled to any notices of any nature whatsoever from
        Lender except with respect to matters for which this Security Instrument
        specifically and expressly provides for the giving of notice by Lender to
        Borrower and except with respect to matters for which Borrower is not, pursuant
        to applicable Legal Requirements, permitted to waive the giving of
        notice.

       

      Section
        18.12. Covenants
        Run with the Land.
        All of
        the grants, covenants, terms, provisions and conditions herein shall run
        with
        the Premises, shall be binding upon Borrower and shall inure to the benefit
        of
        Lender, subsequent holders of this Security Instrument and their successors
        and
        assigns. Without limitation to any provision hereof, the term “Borrower” shall
        include and refer to the borrower named herein, any subsequent owner of the
        Property, and its respective heirs, executors, legal representatives, successors
        and assigns. The representations, warranties and agreements contained in
        this
        Security Instrument and the other Loan Documents are intended solely for
        the
        benefit of the parties hereto, shall confer no rights hereunder, whether
        legal
        or equitable, in any other Person and no other Person shall be entitled to
        rely
        thereon.

       

      Section
        18.13. Applicable
        Law.
        THIS
        SECURITY INSTRUMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED
        BY,
        AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF FLORIDA APPLICABLE
        TO
        CONTRACTS MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAW OF THE
        UNITED
        STATES OF AMERICA.

       

      
        
          
          

        

        
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      Section
        18.14. Security
        Agreement.
        (a)
        (i)
        This
        Security Instrument is both a real property mortgage, deed to secure debt
        or
        deed of trust, as applicable, and a “security agreement” within the meaning of
        the UCC. The Property includes both real and personal property and all other
        rights and interests, whether tangible or intangible in nature, of Borrower
        in
        the Property, and Borrower hereby grants to Lender a security interest in
        all
        portions of the Property constituting personal property or fixtures under
        the
        UCC. This Security Instrument is filed as a fixture filing and covers goods
        which are or are to become fixtures on the Property. Borrower by executing
        and
        delivering this Security Instrument has granted to Lender, as security for
        the
        Debt, a security interest in the Property to the full extent that the Property
        may be subject to the UCC (said portion of the Property so subject to the
        UCC
        being called in this Section 18.14 the “Collateral”).
        If an
        Event of Default shall occur, Lender, in addition to any other rights and
        remedies which it may have, shall have and may exercise immediately and without
        demand, any and all rights and remedies granted to a secured party upon default
        under the UCC, including, without limiting the generality of the foregoing,
        the
        right to take possession of the Collateral or any part thereof, and to take
        such
        other measures as Lender may deem necessary for the care, protection and
        preservation of the Collateral. Upon request or demand of Lender following
        an
        Event of Default, Borrower shall, at its expense, assemble the Collateral
        and
        make it available to Lender at a convenient place acceptable to Lender. Borrower
        shall pay to Lender on demand any and all expenses, including reasonable
        legal
        expenses and attorneys’ fees, incurred or paid by Lender in protecting its
        interest in the Collateral and in enforcing its rights hereunder with respect
        to
        the Collateral. Any disposition pursuant to the UCC of so much of the Collateral
        as may constitute personal property shall be considered commercially reasonable
        if made pursuant to a public sale which is advertised at least twice in a
        newspaper in which sheriff’s sales are advertised in the county where the
        Premises is located. Any notice of sale, disposition or other intended action
        by
        Lender with respect to the Collateral given to Borrower in accordance with
        the
        provisions hereof at least ten (10) days prior to such action, shall constitute
        reasonable notice to Borrower. The proceeds of any disposition of the
        Collateral, or any part thereof, may be applied by Lender to the payment
        of the
        Debt in such priority and proportions as Lender in its discretion shall deem
        proper. It is not necessary that the Collateral be present at any disposition
        thereof. Lender shall have no obligation to clean-up or otherwise prepare
        the
        Collateral for disposition.

       

      (ii) The
        mention in a financing statement filed in the records normally pertaining
        to
        personal property of any portion of the Property shall not derogate from
        or
        impair in any manner the intention of this Security Instrument. Lender hereby
        declares that all items of Collateral are part of the real property encumbered
        hereby to the fullest extent permitted by law, regardless of whether any
        such
        item is physically attached to the Improvements or whether serial numbers
        are
        used for the better identification of certain items. Specifically, the mention
        in any such financing statement of any items included in the Property shall
        not
        be construed to alter, impair or impugn any rights of Lender as determined
        by
        this Security Instrument or the priority of Lender’s lien upon and security
        interest in the Property in the event that notice of Lender’s priority of
        interest as to any portion of the Property is required to be filed in accordance
        with the UCC to be effective against or take priority over the interest of
        any
        particular class of persons, including the federal government or any subdivision
        or instrumentality thereof. No portion of the Collateral constitutes or is
        the
        proceeds of “Farm Products”, as defined in the UCC.

      
        
          
          

        

        
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      (iii) If
        Borrower is at any time a beneficiary under a letter of credit now or hereafter
        issued in favor of Borrower, Borrower shall promptly notify Lender thereof
        and,
        at the request and option of Lender, Borrower shall, pursuant to an agreement
        in
        form and substance satisfactory to Lender, either (A) arrange for the issuer
        and
        any confirmer of such letter of credit to consent to an assignment to Lender
        of
        the proceeds of any drawing under the letter of credit or (B) arrange for
        Lender
        to become the transferee beneficiary of the letter of credit, with Lender
        agreeing, in each case, that the proceeds of any drawing under the letter
        to
        credit are to be applied as provided in this Security Instrument.

       

      (iv) Borrower
        and Lender acknowledge that for the purposes of Article 9 of the UCC, the
        law of
        the State of New York shall be the law of the jurisdiction of the bank in
        which
        the Central Account is located.

       

      (v) Lender
        may comply with any applicable Legal Requirements in connection with the
        disposition of the Collateral, and Lender’s compliance therewith will not be
        considered to adversely affect the commercial reasonableness of any sale
        of the
        Collateral.

       

      (vi) Lender
        may sell the Collateral without giving any warranties as to the Collateral.
        Lender may specifically disclaim any warranties of title, possession, quiet
        enjoyment or the like. This procedure will not be considered to adversely
        affect
        the commercial reasonableness of any sale of the Collateral.

       

      (vii) If
        Lender
        sells any of the Collateral upon credit, Borrower will be credited only with
        payments actually made by the purchaser, received by Lender and applied to
        the
        indebtedness of Borrower. In the event the purchaser of the Collateral fails
        to
        fully pay for the Collateral, Lender may resell the Collateral and Borrower
        will
        be credited with the proceeds of such sale.

       

      (b) Borrower
        hereby irrevocably appoints Lender as its attorney-in-fact, coupled with
        an
        interest, to file with the appropriate public office on its behalf any financing
        or other statements signed only by Lender, as secured party, or, to the extent
        permitted under the UCC, unsigned, in connection with the Collateral covered
        by
        this Security Instrument.

       

      Section
        18.15. Actions
        and Proceedings.
        Lender
        has the right to appear in and defend any action or proceeding brought with
        respect to the Property in its own name or, if required by Legal Requirements
        or, if in Lender’s reasonable judgment, it is necessary, in the name and on
        behalf of Borrower, which Lender believes will adversely affect the Property
        or
        this Security Instrument and to bring any action or proceedings, in its name
        or
        in the name and on behalf of Borrower, which Lender, in its reasonable
        discretion, decides should be brought to protect its interest in the
        Property.

       

      Section
        18.16. Usury
        Laws.
        This
        Security Instrument and the Note are subject to the express condition, and
        it is
        the expressed intent of the parties, that at no time shall Borrower be obligated
        or required to pay interest on the principal balance due under the Note at
        a
        rate which could subject the holder of the Note to either civil or criminal
        liability as a result of being in excess of the maximum interest rate which
        Borrower is permitted by law to contract or agree to pay. If by the terms
        of
        this Security Instrument or the Note, Borrower is at any time required or
        obligated to pay interest on the principal balance due under the Note at
        a rate
        in excess of such maximum rate, such rate of interest shall be deemed to
        be
        immediately reduced to such maximum rate and the interest payable shall be
        computed at such maximum rate and all prior interest payments in excess of
        such
        maximum rate shall be applied and shall be deemed to have been payments in
        reduction of the principal balance of the Note. No application to the principal
        balance of the Note pursuant to this Section 18.16 shall give rise to any
        requirement to pay any prepayment fee or charge of any kind due hereunder,
        if
        any.

      
        
          
          

        

        
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      Section
        18.17. Remedies
        of Borrower.
        In the
        event that a claim or adjudication is made that Lender has acted unreasonably
        or
        unreasonably delayed acting in any case where by law or under the Note, this
        Security Instrument or the Loan Documents, it has an obligation to act
        reasonably or promptly, Lender shall not be liable for any monetary damages,
        and
        Borrower’s remedies shall be limited to injunctive relief or declaratory
        judgment.

       

      Section
        18.18. Offsets,
        Counterclaims and Defenses.
        Any
        assignee of this Security Instrument, the Assignment and the Note shall take
        the
        same free and clear of all offsets, counterclaims or defenses which are
        unrelated to the Note, the Assignment or this Security Instrument which Borrower
        may otherwise have against any assignor of this Security Instrument, the
        Assignment and the Note and no such unrelated counterclaim or defense shall
        be
        interposed or asserted by Borrower in any action or proceeding brought by
        any
        such assignee upon this Security Instrument, the Assignment or the Note and
        any
        such right to interpose or assert any such unrelated offset, counterclaim
        or
        defense in any such action or proceeding is hereby expressly waived by
        Borrower.

       

      Section
        18.19. No
        Merger.
        If
        Borrower’s and Lender’s estates become the same including, without limitation,
        upon the delivery of a deed by Borrower in lieu of a foreclosure sale, or
        upon a
        purchase of the Property by Lender in a foreclosure sale, this Security
        Instrument and the lien created hereby shall not be destroyed or terminated
        by
        the application of the doctrine of merger and in such event Lender shall
        continue to have and enjoy all of the rights and privileges of Lender as
        to the
        separate estates; and, as a consequence thereof, upon the foreclosure of
        the
        lien created by this Security Instrument, any Leases or subleases then existing
        and created by Borrower shall not be destroyed or terminated by application
        of
        the law of merger or as a result of such foreclosure unless Lender or any
        purchaser at any such foreclosure sale shall so elect. No act by or on behalf
        of
        Lender or any such purchaser shall constitute a termination of any Lease
        or
        sublease unless Lender or such purchaser shall give written notice thereof
        to
        such lessee or sublessee.

       

      Section
        18.20. Restoration
        of Rights.
        In case
        Lender shall have proceeded to enforce any right under this Security Instrument
        by foreclosure sale, entry or otherwise, and such proceedings shall have
        been
        discontinued or abandoned for any reason or shall have been determined
        adversely, then, in every such case, Borrower and Lender shall be restored
        to
        their former positions and rights hereunder with respect to the Property
        subject
        to the lien hereof.

       

      Section
        18.21. Waiver
        of Statute of Limitations.
        The
        pleadings of any statute of limitations as a defense to any and all obligations
        secured by this Security Instrument are hereby waived to the full extent
        permitted by Legal Requirements.

       

      Section
        18.22. Advances.
        This
        Security Instrument shall cover any and all advances made pursuant to the
        Loan
        Documents, rearrangements and renewals of the Debt and all extensions in
        the
        time of payment thereof, even though such advances, extensions or renewals
        be
        evidenced by new promissory notes or other instruments hereafter executed
        and
        irrespective of whether filed or recorded. Likewise, the execution of this
        Security Instrument shall not impair or affect any other security which may
        be
        given to secure the payment of the Debt, and all such additional security
        shall
        be considered as cumulative. The taking of additional security, execution
        of
        partial releases of the security, or any extension of time of payment of
        the
        Debt shall not diminish the force, effect or lien of this Security Instrument
        and shall not affect or impair the liability of Borrower and shall not affect
        or
        impair the liability of any maker, surety, or endorser for the payment of
        the
        Debt.

      
        
          
          

        

        
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      Section
        18.23. Application
        of Default Rate Not a Waiver.
        Application of the Default Rate shall not be deemed to constitute a waiver
        of
        any Default or Event of Default or any rights or remedies of Lender under
        this
        Security Instrument, any other Loan Document or applicable Legal Requirements,
        or a consent to any extension of time for the payment or performance of any
        obligation with respect to which the Default Rate may be invoked.

       

      Section
        18.24. Intervening
        Lien.
        To the
        fullest extent permitted by law, any agreement hereafter made pursuant to
        this
        Security Instrument shall be superior to the rights of the holder of any
        intervening lien or security interest.

       

      Section
        18.25. No
        Joint Venture or Partnership.
        Borrower and Lender intend that the relationship created hereunder be solely
        that of mortgagor and mortgagee or grantor and beneficiary or borrower and
        lender, as the case may be. Nothing herein is intended to create a joint
        venture, partnership, tenancy-in-common, or joint tenancy relationship between
        Borrower and Lender nor to grant Lender any interest in the Property other
        than
        that of mortgagee, beneficiary or lender.

       

      Section
        18.26. Time
        of the Essence.
        Time
        shall be of the essence in the performance of all obligations of Borrower
        hereunder.

       

      Section
        18.27. Borrower’s
        Obligations Absolute.
        Borrower acknowledges that Lender and/or certain Affiliates of Lender are
        engaged in the business of financing, owning, operating, leasing, managing,
        and
        brokering real estate and in other business ventures which may be viewed
        as
        adverse to or competitive with the business, prospect, profits, operations
        or
        condition (financial or otherwise) of Borrower. Except as set forth to the
        contrary in the Loan Documents, all sums payable by Borrower hereunder shall
        be
        paid without notice or demand, counterclaim, set-off, deduction or defense
        and
        without abatement, suspension, deferment, diminution or reduction, and the
        obligations and liabilities of Borrower hereunder shall in no way be released,
        discharged, or otherwise affected (except as expressly provided herein) by
        reason of: (a) any damage to or destruction of or any Taking of the Property
        or
        any portion thereof; (b) any restriction or prevention of or interference
        with
        any use of the Property or any portion thereof; (c) any title defect or
        encumbrance or any eviction from the Premises or any portion thereof by title
        paramount or otherwise; (d) any bankruptcy proceeding relating to Borrower,
        any
        General Partner, or any guarantor or indemnitor, or any action taken with
        respect to this Security Instrument or any other Loan Document by any trustee
        or
        receiver of Borrower or any such General Partner, guarantor or indemnitor,
        or by
        any court, in any such proceeding; (e) any claim which Borrower has or might
        have against Lender; (f) any default or failure on the part of Lender to
        perform
        or comply with any of the terms hereof or of any other agreement with Borrower;
        or (g) any other occurrence whatsoever, whether similar or dissimilar to
        the
        foregoing, whether or not Borrower shall have notice or knowledge of any
        of the
        foregoing. 

       

      Section
        18.28. Publicity.
        All
        promotional news releases, publicity or advertising by Manager, Borrower
        or
        their respective Affiliates through any media intended to reach the general
        public shall not refer to the Loan Documents or the financing evidenced by
        the
        Loan Documents, or to Lender or to any of its Affiliates without the prior
        written approval of Lender or such Affiliate, as applicable, in each instance,
        such approval not to be unreasonably withheld or delayed. Lender shall be
        authorized to provide information relating to the Property, the Loan and
        matters
        relating thereto to rating agencies, underwriters, potential securities
        investors, auditors, regulatory authorities and to any Persons which may
        be
        entitled to such information by operation of law. 

      
        
          
          

        

        
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      Section
        18.29. Securitization
        Opinions.
        In the
        event the Loan is included as an asset of a Securitization by Lender or any
        of
        its Affiliates, Borrower shall, within fifteen (15) Business Days after Lender’s
        written request therefor, at Lender’s sole cost and expense, deliver opinions in
        form and substance and delivered by counsel reasonably acceptable to Lender
        and
        each Rating Agency, as may be reasonably required by Lender and/or each Rating
        Agency in connection with such securitization. Borrower’s failure to deliver the
        opinions required hereby within such ten (10) Business Day period shall
        constitute an “Event of Default” hereunder.

       

      Section
        18.30. Intentionally
        Deleted. 

       

      Section
        18.31. Securitization
        Financials.
        Borrower covenants and agrees that, upon Lender’s written request therefor in
        connection with a Securitization, Borrower shall, at Lender’s sole cost and
        expense, promptly deliver audited financial statements and related documentation
        prepared by an Independent certified public accountant that satisfy securities
        laws and requirements for use in a public registration statement (which may
        include up to three (3) years of historical audited financial
        statements).

       

      Section
        18.32. Exculpation.
        Notwithstanding anything herein or in any other Loan Document to the contrary,
        except as otherwise set forth in this Section 18.32 to the contrary, Lender
        shall not enforce the liability and obligation of Borrower or (a) if Borrower
        is
        a partnership, its constituent partners or any of their respective partners,
        (b)
        if Borrower is a trust, its beneficiaries or any of their respective Partners
        (as hereinafter defined), (c) if Borrower is a corporation, any of its
        shareholders, directors, principals, officers or employees, or (d) if Borrower
        is a limited liability company, any of its members, managers, officers or
        directors (the Persons described in the foregoing clauses (a) - (d), as the
        case
        may be, are hereinafter referred to as the “Partners”)
        to
        perform and observe the obligations contained in this Security Instrument
        or any
        of the other Loan Documents by any action or proceeding wherein a money judgment
        shall be sought against Borrower or the Partners, except that Lender may
        bring a
        foreclosure action, action for specific performance, or other appropriate
        action
        or proceeding (including, without limitation, an action to obtain a deficiency
        judgment) solely for the purpose of enabling Lender to realize upon (i)
        Borrower’s interest in the Property, (ii) the Rent to the extent received by
        Borrower (or received by its Partners) after the occurrence of an Event of
        Default and not either delivered to Lender (or Lender’s agent) or applied to
        ordinary and necessary expenses of owning and operating the Property (the
        “Recourse
        Distributions”)
        and
        (iii) any other collateral given to Lender under the Loan Documents (the
        collateral described in the foregoing clauses (i) - (iii) is hereinafter
        referred to as the “Default
        Collateral”);
        provided,
        however,
        that
        any judgment in any such action or proceeding shall be enforceable against
        Borrower or the Partners, as the case may be, only to the extent of any such
        Default Collateral. The provisions of this Section shall not, however, (a)
        impair the validity of the Debt evidenced by the Note or in any way affect
        or
        impair the lien of this Security Instrument or any of the other Loan Documents
        or the right of Lender to foreclose this Security Instrument following the
        occurrence of an Event of Default; (b) impair the right of Lender to name
        Borrower as a party defendant in any action or suit for judicial foreclosure
        and
        sale under this Security Instrument; (c) affect the validity or enforceability
        of the Note, this Security Instrument, or any of the other Loan Documents,
        or
        impair the right of Lender to seek a personal judgment against the Guarantor;
        (d) impair the right of
        Lender
        to obtain the appointment of a receiver; (e) impair the enforcement of the
        Assignment; (f) impair the 

       

      
        
          
          

        

        
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      right
        of
        Lender to bring suit for a monetary judgment against Borrower with respect
        to
        any losses resulting from fraud, material misrepresentation, or failure to
        disclose a material fact, any untrue statement of a material fact or omission
        to
        state a material fact in the written materials and/or information provided
        to
        Lender or any of its affiliates by or on behalf of Borrower, Guarantor or
        any of
        their Affiliates in connection with this Security Instrument, the Note or
        the
        other Loan Documents, and the foregoing provisions shall not modify, diminish
        or
        discharge the liability of Borrower, Guarantor or any of their Affiliates
        with
        respect to same; (g) impair the right of Lender to bring suit for a monetary
        judgment against Borrower to obtain the Recourse Distributions received by
        Borrower including, without limitation, the right to bring suit for a monetary
        judgment to proceed against Guarantor to the extent of Guarantor’s liability
        under any guaranty delivered by Guarantor and the foregoing provisions shall
        not
        modify, diminish or discharge the liability of Borrower or Guarantor with
        respect to same; (h) impair the right of Lender to bring suit for a monetary
        judgment against Borrower with respect to any losses resulting from Borrower’s
        misappropriation of tenant security deposits or Rent (other than rent deemed
        “additional rent” under the Leases) collected more than one (1) month in
        advance, and the foregoing provisions shall not modify, diminish or discharge
        the liability of Borrower with respect to same; (i) impair the right of Lender
        to obtain Loss Proceeds due to Lender pursuant to this Security Instrument
        to
        the extent actually paid by the insurer; (j) impair the right of Lender to
        enforce the provisions of Sections 2.02(g), 16.01 or 16.02, inclusive of
        this
        Security Instrument, even after repayment in full by Borrower of the Debt
        or to
        bring suit for a monetary judgment against Borrower with respect to any losses
        resulting from any obligation set forth in said Sections; (k) prevent or
        in any
        way hinder Lender from exercising, or constitute a defense, or counterclaim,
        or
        other basis for relief in respect of the exercise of, any other remedy against
        any or all of the collateral securing the Note as provided in the Loan
        Documents; (l) impair the right of Lender to bring suit for a monetary judgment
        against Borrower with respect to any losses resulting from any misappropriation
        or conversion of Loss Proceeds, and the foregoing provisions shall not modify,
        diminish or discharge the liability of Borrower with respect to same; (m)
        impair
        the right of Lender to sue for, seek or demand a deficiency judgment against
        Borrower solely for the purpose of foreclosing the Property or any part thereof,
        or realizing upon the Default Collateral; provided,
        however,
        that
        any such deficiency judgment referred to in this clause (m) shall be enforceable
        against Borrower and Guarantor only to the extent of any of the Default
        Collateral; (n) impair the ability of Lender to bring suit for a monetary
        judgment against Borrower with respect to any losses resulting from arson
        or
        physical waste to or of the Property or damage to the Property in each case
        resulting from the intentional acts or intentional omissions of Borrower,
        Guarantor or any of their Affiliates; (o) impair the right of Lender to bring
        a
        suit for a monetary judgment against Borrower in the event of the exercise
        of
        any right or remedy under any federal, state or local forfeiture laws resulting
        in the loss of the lien of this Security Instrument, or the priority thereof,
        against the Property; (p) be deemed a waiver of any right which Lender may
        have
        under Sections 506(a), 506(b), 1111(b) or any other provision of the Bankruptcy
        Code to file a claim for the full amount of the Debt or to require that all
        collateral shall continue to secure all of the Debt; (q) impair the right
        of
        Lender to bring suit for monetary judgment against Borrower with respect
        to any
        losses resulting from any claims, actions or proceedings initiated by Borrower
        (or any Affiliate of Borrower) alleging that the relationship of Borrower
        and
        Lender is that of joint venturers, partners, tenants in common, joint tenants
        or
        any relationship other than that of debtor and creditor; (r) impair the right
        of
        Lender to bring suit for a
        monetary judgment with respect to any losses resulting from a Transfer in
        violation of the provisions of Article IX hereof; or (s) impair the right
        of
        Lender to bring suit against Borrower for Borrower’s failure to pay any valid
        taxes, assessments, mechanic’s liens, materialmen’s liens or other liens which
        could create liens on any portion of the Property superior to the lien or
        security title of this Security Instrument or the other Loan Documents, except,
        (1) with respect to any such taxes or assessments, to the extent that funds
        have
        been deposited with Lender pursuant to the terms of this Security Instrument
        specifically for the applicable taxes or assessments and not applied by Lender
        to pay such taxes and assessments, and (2) to the extent that there is
        insufficient available cash flow at any time to enable Borrower to pay all
        operating expenses (including taxes and assessments) then due and payable,
        necessary property improvement expenditures and amounts due and payable under
        the Loan Documents (as demonstrated to the reasonable satisfaction of Lender)
        and Borrower applies all available cash flow to the payment of any one or
        more
        of the foregoing items. The provisions of this Section 18.32 shall be
        inapplicable to Borrower if (a) any proceeding, action, petition or filing
        under
        the Bankruptcy Code, or any similar state or federal law now or hereafter
        in
        effect relating to bankruptcy, reorganization or insolvency, or the arrangement
        or adjustment of debts, shall be filed by, consented to or acquiesced in
        by or
        with respect to Borrower, or if Borrower shall institute any proceeding for
        its
        dissolution or liquidation, or shall make an assignment for the benefit of
        creditors or (b) Borrower or any Affiliate contests or interferes with Lender’s
        enforcement of its rights and remedies hereunder or under the Loan Documents
        by
        asserting any defense (x) as to the validity of the obligations under the
        Loan
        Documents or in any way relating to the structure of the Borrower or the
        enforceability of Lender’s rights and remedies under the Loan Documents, or (y)
        for the purpose of delaying, hindering or impairing Lender’s rights and remedies
        under the Loan Documents (collectively, a “Contest”)
        (provided that if any such Person obtains a non-appealable order successfully
        asserting a Contest, Borrower shall have no liability under this clause (b)),
        in
        which event Lender shall have recourse against all of the assets of Borrower
        including, without limitation, any right, title and interest of Borrower
        in and
        to the Property.

       

      Section
        18.33. Intentionally
        Deleted

       

      Section
        18.34. Intentionally
        Deleted

       

      Section
        18.35. Intentionally
        Deleted

       

      
        
          
          

        

        
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      Section
        18.36. Cooperation.
        (a)
        Borrower covenants and agrees that in the event the Loan is to be included
        as an
        asset of a Securitization, Borrower shall (a) gather any information reasonably
        required by the Rating Agencies in connection with such a Securitization,
        (b) at
        Lender’s request, meet with representatives of the Rating Agency to discuss the
        business and operations of the Property, and (c) cooperate with the reasonable
        requests of each Rating Agency and Lender in connection with all of the
        foregoing as well as in connection with all other matters and the preparation
        of
        any offering documents with respect thereof, including, without limitation,
        entering into any amendments or modifications to this Security Instrument
        or to
        any other Loan Document which may be requested by Lender to conform to Rating
        Agency or market standards for a Securitization provided that no such
        modification shall modify (a) the interest rate payable under the Note, (b)
        the
        stated maturity of the Note, (c) the amortization of principal under the
        Note,
        (d) Section 18.32 hereof, (e) any other material economic term of the Loan
        or
        (f) any provision,
        the effect of which would materially increase Borrower’s obligations or
        materially decrease Borrower’s rights under the Loan Documents. Borrower
        acknowledges that the information provided by Borrower to Lender may be
        incorporated into the offering documents for a Securitization. Lender and
        each
        Rating Agency shall be entitled to rely on the information supplied by, or
        on
        behalf of, Borrower and Borrower indemnifies and holds harmless the Indemnified
        Parties, their Affiliates and each Person who controls such Persons within
        the
        meaning of Section 15 of the Securities Act or Section 20 of the Securities
        Exchange Act of 1934, as same may be amended from time to time, for, from
        and
        against any claims, demands, penalties, fines, liabilities, settlements,
        damages, costs and expenses of whatever kind or nature, known or unknown,
        contingent or otherwise, whether incurred or imposed within or outside the
        judicial process, including, without limitation, reasonable attorneys’ fees and
        disbursements (including, without limitation, reasonable attorney’s fees and
        expenses, whether incurred within or outside the judicial process) that arise
        out of or are based upon any untrue statement or alleged untrue statement
        of any
        material fact contained in such information or arise out of or are based
        upon
        the omission or alleged omission to state therein a material fact required
        to be
        stated in such information or necessary in order to make the statements in
        such
        information, or in light of the circumstances under which they were made,
        not
        misleading.

       

      (b) Further,
        Borrower shall cooperate at no cost to Borrower or Guarantor, with Lender
        and
        its affiliates in connection with any such sale of the Loan by mortgage backed
        pass through certificates, participations, securities or pari passu notes
        evidencing whole or component interests therein through one of more public
        or
        private offerings, including, but not limited to:

       

      (i) separating
        the Loan into two or more separate notes (or components that correspond to
        one
        or more tranches of the certificates/securities created in a Securitization)
        or
        participation interests. Such notes or components or participation interests
        may
        be assigned different interest rates, so long as the weighted average of
        such
        interest rates equals the interest rate on the Note. Additionally, Lender
        may
        split the Loan into a senior/subordinated participation structure;

       

      (ii) obtaining
        ratings from two or more Rating Agencies;

       

      (iii) making
        or
        causing to be made reasonable changes or modifications to the loan
        documentation, organizational documentation, opinion letters and other
        documentation; 

       

      (iv) reviewing
        prepared offering materials relating to the Property, Borrower, Guarantor
        and
        the Loan;

       

      (v) delivering
        updated information on the Borrower, Guarantor and the Property;

       

      (vi) participating
        in investor or Rating Agency meetings if requested by Lender;
        and

      
        
          
          

        

        
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      (vii) permitting
        adjustment of Lender’s security interest to permit a senior/subordinate or other
        structure to enhance a Securitization, participation interest or a distribution
        of the Loan; and

       

      (viii) restructuring
        of the Loan and/or a reduction of the Loan Amount with the imposition of
        a
        mezzanine loan in the corresponding amount to be reduced, which mezzanine
        loan
        shall be secured by a pledge of ownership interests in the Borrower or the
        members of Borrower. Such notes or components may be assigned different interest
        rates, so long as the weighted average of such interest rates equals the
        interest rate on the Note. 

       

      Section
        18.37. Regulation
        A/B.
        b)
        If
        requested by Lender, Borrower shall furnish, or shall cause the applicable
        tenant to furnish, to Lender financial data and/or financial statements in
        accordance with Regulation AB (as defined herein) for any tenant of any Property
        if, in connection with a securitization, Lender expects there to be, with
        respect to such tenant or group of affiliated tenants, a concentration within
        all of the mortgage loans included or expected to be included, as applicable,
        in
        such securitization such that such tenant or group of affiliated tenants
        would
        constitute a Significant Obligor (as defined herein); provided, however,
        that in
        the event the related lease does not require the related tenant to provide
        the
        foregoing information, Borrower shall use commercially reasonable efforts
        to
        cause the applicable tenant to furnish such information.

       

      (b) If,
        at
        the time one or more Disclosure Documents are being prepared for a
        securitization, Lender expects that Borrower alone or Borrower and one or
        more
        affiliates of Borrower collectively, or the Property alone or the Property
        and
        any other parcel(s) of real property, together with improvements thereon
        and
        personal property related thereto, that is “related”, within the meaning of the
        definition of Significant Obligor, to the Property (a “Related Property”)
        collectively, will be a Significant Obligor, Borrower shall furnish to Lender
        upon request (i) the selected financial data or, if applicable, net operating
        income, required under Item 1112(b)(1) of Regulation AB and meeting the
        requirements thereof, if Lender expects that the principal amount of the
        Loan,
        together with any loans made to an affiliate of Borrower or secured by a
        Related
        Property that is included in a securitization with the Loan (a “Related Loan”),
        as of the cut-off date for such securitization may, or if the principal amount
        of the Loan together with any Related Loans as of the cut-off date for such
        securitization and at any time during which the Loan and any Related Loans
        are
        included in a securitization does, equal or exceed ten percent (10%) (but
        less
        than twenty percent (20%)) of the aggregate principal amount of all mortgage
        loans included or expected to be included, as applicable, in the securitization
        or (ii) the financial statements required under Item 1112(b)(2) of Regulation
        AB
        and meeting the requirements thereof, if Lender expects that the principal
        amount of the Loan together with any Related Loans as of the cut-off date
        for
        such securitization may, or if the principal amount of the Loan together
        with
        any Related Loans as of the cut-off date for such securitization and at any
        time
        during which the Loan and any Related Loans are included in a securitization
        does, equal or exceed twenty percent (20%) of the aggregate principal amount
        of
        all mortgage loans included or expected to be included, as applicable, in
        the
        securitization. Such financial data or financial statements shall be furnished
        to Lender (A) within ten (10) Business Days after notice from Lender in
        connection with the preparation of Disclosure Documents for the securitization,
        (B) not later than thirty (30) days after the end of each fiscal quarter
        of
        Borrower and (C) not later than seventy-five (75) days after the end of each
        fiscal year of Borrower; provided, however, that Borrower shall not be obligated
        to furnish financial data or financial statements pursuant to clauses (B)
        or (C)
        of this sentence with respect to any period for which a filing pursuant to
        the
        Securities Exchange Act of 1934 in connection with or relating to the
        securitization (an “Exchange Act Filing”) is not required. As used herein,
“Regulation AB” shall mean Regulation AB under the Securities Act of 1933 and
        the Securities Exchange Act of 1934 (as amended). As used herein, “Disclosure
        Document” shall mean a prospectus, prospectus supplement, private placement
        memorandum, or similar offering memorandum or offering circular, in each
        case in
        preliminary or final form, used to offer securities in connection with a
        securitization. As used herein, “Significant Obligor” shall have the meaning set
        forth in Item 1101(k) of Regulation AB.

      
        
          
          

        

        
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      Section
        18.38. Certain
        Matters Relating to Property Located in the State of Florida.
        With
        respect to the Property which is located in the State of Florida,
        notwithstanding anything contained herein to the contrary. 

       

      (a) All
        references herein to "attorneys' fees" shall be deemed to include reasonable
        attorneys' fees incurred at both the trial and appellate levels. 

       

      (b) It
        is
        understood and agreed that this Mortgage shall secure payment of not only
        the
        indebtedness evidenced by the Note but also any and all substitutions,
        replacements, renewals and extensions of the Note, any and all indebtedness
        and
        obligations arising pursuant to the terms hereof and any and all indebtedness
        and obligations arising pursuant to the terms of any of the other Loan
        Documents, all of which indebtedness is equally secured with and has the
        same
        priority as any amounts advanced as of the date hereof. It is agreed that
        any
        future advances made by Lender to or for the benefit of Borrower from time
        to
        time under this Mortgage or the other Loan Documents and whether or not such
        advances are obligatory or are made at the option of Lender, or otherwise,
        made
        for any purpose, within twenty (20) years from the date hereof, and all interest
        accruing thereon, shall be equally secured by this Mortgage and shall have
        the
        same priority as all amounts, if any, advanced as of the date hereof and
        shall
        be subject to all of the terms and provisions of this Mortgage. The total
        amount
        of the indebtedness including future advances, secured hereby may increase
        or
        decrease from time to time in accordance with the terms of the Loan Documents,
        but shall not exceed the sum $54,500,000.00 at
        any
        one time, plus accrued interest thereon and any disbursements made by Lender
        in
        accordance with the Loan Documents.

       

      (c) Borrower
        hereby indemnifies and holds harmless the law firm of Winston & Strawn LLP
        and all of their attorneys, from any and all loss, cost, expense, damage
        or
        claim, whether or not valid, including, without limitation, reasonable
        attorneys' fees and disbursements, arising under or in any way connected
        with
        Section 697.10 of Florida Statutes or any similar law. Borrower hereby verifies
        and confirms, to the best of its knowledge, all factual information in this
        Mortgage, including the accuracy and correctness of the legal description
        set
        forth herein. In the event any factual errors are found in this Mortgage
        or in
        the legal description, Borrower and the Lender shall, at Borrower's sole
        cost
        and expense, promptly correct or cause to be corrected subsequent to the
        date
        hereof any and all such errors. Borrower shall promptly pay or cause to be
        paid
        all damages, claims or any other costs whatsoever arising under or in way
        connected with any claim, whether or not valid, arising under or in any way
        connected with Section 697.10 of the Florida Statutes, or any similar law
        due to
        or caused by any inaccuracy or incorrectness of factual information or
        inaccuracy or incorrectness of the legal description set forth herein.
        Notwithstanding the foregoing, all rights of Borrower and Lender are preserved
        against Borrower's and Lender's title insurers, the surveyor, the engineer,
        if
        any, and the appraiser, if any, and, after payment is made by Borrower, Borrower
        shall be subrogated to such rights.

       

      (d) Upon
        payment of all the Debt, Borrower (or its designee, including a subsequent
        lender to Borrower) shall have the right to purchase the Loan Documents,
        said
        purchase to be by assignment of the Loan Documents, without recourse,
        representation or warranty (except as to ownership of the Loan Documents,
        their
        not being encumbered or previously transferred and Lender's authority to
        assign
        same).

      
        
          
          

        

        
          -102-

          
            

          

        

        
          
          

        

      

       

      (e) In
        no
        event shall the Existing Note, the indebtedness evidenced by the Existing
        Note
        or the lien of the Existing Mortgage be novated, cancelled or released by
        any of
        the Loan Documents.

       

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      
        
          
          

        

        
          -103-

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, Borrower has executed this Security Instrument on the day
        and
        year first hereinabove set forth.

       

      
        	
                WITNESSES:

              	
                BORROWER:

              
	
                 

                /s/
                  Joy
                  DeVita                           
                  

                Signature

                 

                Joy
                  DeVita                                 

                Print
                  Name

                 

                /s/
                  Dina
                  Berg                             

                Signature

                 

                Dina
                  Berg                                    

                Print
                  Name

              	
                LVP
                  ST. AUGUSTINE OUTLETS LLC,

                a
                  Delaware limited liability company 

                 

                By:
                   Lightstone
                  Value Plus REIT LP,

                        
                  a Delaware limited partnership,

                        
                  Its: Sole Member 

                 

                    By:
                   Lightstone
                  Value Plus Real Estate Investment Trust, Inc,

                    a
                  Maryland corporation

                    Its:
                  General Partner

                 

                 

                By
                   /s/
                  David Lichtenstein

                Name: David
                  Lichtenstein

                Title: President
                  

              

      

       

      
        
          
          

        

        
          -104-

          
            

          

        

        
          
          

        

      

      STATE
        OF
New
        Jersey

      

      COUNTY
        OF
County

      

       

      The
        foregoing instrument was acknowledged before me this ___ day of March, 2006
        by
        David Lichtenstein, the President and duly authorized agent of Lightstone
        Value
        Plus Real Estate Investment Trust, Inc, a Maryland corporation, the General
        Partner of Lightstone Value Plus REIT LP, a Delaware limited partnership,
        the
        Sole Member of LVP ST. AUGUSTINE OUTLETS LLC, a Delaware limited liability
        company. He is personally known to me or has produced _________________________
        as identification.

       

       

      (Seal)
        

                                  

                                      /s/
        Anna E.
        Waddy

                                     
Notary
        Public

      

                                       
Print
        Name:
Anna
        Waddy

      

      My
        Commission Expires: 12/22/2010

      
        
          
          

        

        
          -105-

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      Legal
        Description

      

      ALL
        that
        certain lot, piece or parcel of land, with the buildings and improvements
        thereon erected, situate, lying and being in the City of Saint Augustine,
        County
        of Saint Johns, State of Florida.

      

      A
        part of
        Section 5 and 6, Township 7 South, Range 29 East, St. Johns County, Florida,
        more particularly described as follows: For a point of reference, commence
        at
        the Northeast corner of said Section 6; thence South 02°02'27" East along the
        East line of said Section 6, a distance of 921.41 feet to the Point of
        Beginning; thence departing said Section line, South 33°23'45" East, a distance
        of 1104.56 feet; thence South 56°36'15" West, a distance of 1350.00 feet to a
        point on the Northeasterly limited access right of way line of Interstate
        95,
        State Road No. 9, (a varying right of way as now established) and a point
        on a
        curve, concave Southwesterly having a radius of 5879.58 feet; thence
        Northwesterly along said right of way line and along the arc of said curve,
        an
        arc distance of 90.29 feet, said arc being subtended by a chord bearing of
        North
        28°47'23" West and a chord distance of 90.29 feet to a point on said curve and
        a
        point on the Northwesterly right of way line of Outlet Centre Drive (a 90
        foot
        private right of way); thence departing said Northeasterly limited access
        right
        of way line, North 56°36'15" East along said Northwesterly right of way line, a
        distance of 307.90 feet; thence departing said Northwesterly right of way
        line,
        North 33°23'45" West, a distance of 83.75 feet; thence North 22°44'16" West, a
        distance of 218.65 feet; thence North 33°23'45" West, a distance of 1093.87
        feet; thence North 56°36'15" East, a distance of 994.41 feet; thence South
        33°23'45" East, a distance of 377.94 feet to the point of
        beginning.

      

      TOGETHER
        WITH
        Easements benefiting the insured land as set forth in the following
        documents:

      

      
        	
                1)

              	
                Development
                  Agreement between St. Augustine Associates, Inc., a Florida corporation,
                  as Trustee under Land Trust Agreement for St. Augustine Centre
                  Land Trust
                  dated June 15, 1998 and FOM St. Augustine Limited Partnership,
                  recorded
                  July 13, 1998 in Official Records Book 1333, page 416, Public Records
                  of
                  St. Johns County, Florida.

              

        	 	 

        	2) 	Declaration of Reciprocal Easements, Rights and
                Maintenance Covenants for the St. Augustine Centre DRI/PUD, by St.
                Augustine Associates, Inc., a Florida corporation, as Trustee under
                Land
                Trust Agreement for St. Augustine Centre Land Trust dated June 15,
                1998
                recorded July 13, 1998 in Official Records Book 1333, page 347, Public
                Records of St. Johns County, Florida, and First Amendment to Declaration
                of Reciprocal Easements, Rights  and
                Maintenance Covenants for the St. Augustine Centre DRI/PUD by St.
                Augustine Associates, Inc., a Florida corporation, as Trustee under
                Land
                Trust Agreement for St. Augustine Centre Land Trust dated June 15,
                1998,
                recorded July 13, 1998 in Official Records Book 1333, page 384, Public
                Records of St. Johns County, Florida. (NOTE: The Easements established
                pursuant to this Declaration include, but are not limited to, an
                access
                easement into, out of, on, over and across the areas described in
                the
                Declaration as Belz Outlet Boulevard and Outlet Centre Drive, as
                same is
                created pursuant to Paragraph 7 of the
                Declaration.)

      

      

        
          
            
            

          

          
            -106-

            
              

            

          

          
            
            

          

        

      

      

      
        	
                3)

              	
                St.
                  Augustine Centre Road and Utilities Improvements Construction Agreement
                  between St. Augustine Associates, Inc., a Florida corporation,
                  as Trustee
                  under Land Trust Agreement for St. Augustine Centre Land Trust,
                  dated June
                  15, 1998 and FOM St. Augustine Limited Partnership recorded July
                  13, 1998
                  in Official Records Book 1333, page 434, Public Records of St.
                  Johns
                  County, Florida.

              

      

      

      
        	
                4)

              	
                Declaration
                  of Drainage Easement by St. Augustine Associates, Inc., a Florida
                  corporation, as Trustee under Land Trust Agreement for St. Augustine
                  Centre Land Trust dated June 15, 1998, recorded July 13, 1998 in
                  Official
                  Records Book 1333, page 388, Public Records of St. Johns County,
                  Florida.

              

      

      

      
        	
                5)

              	
                Declaration
                  of Restrictive Covenants and Easement Agreement made by FOM St.
                  Augustine
                  Limited Partnership dated September 23,
                  1999.

              

      

      

      
        	
                6)

              	
                Grant
                  of Easements and Covenants Running with the Land between FOM St.
                  Augustine
                  Limited Partnership and St. Augustine Outlet World, Ltd., dated
                  September
                  23, 1999.

              

      

       

      NOTE: Being
        a
        part of Sections 5 and 6, Township 7 South, Range 29 East, Tax Map of the
        County
        of Saint Johns.

      
        
          
          

        

        
          -107-

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

       

      SUMMARY
        OF RESERVES

      

      
        	
                Reserve
                  Items

              	
                Initial
                  Deposit Amount

              	
                Monthly
                  Installment Amount

              
	
                Basic
                  Carrying Costs

                ·     Taxes

                ·     Insurance
                  Premiums

              	
                 

                ·     Taxes          
                  $349,332.13

                ·     Insurance

                        
                  Premiums    $  38,168.90

              	
                 

                ·     Taxes              
                  $49,904.59

                ·     Insurance

                        
                  Premiums        $ 3,180.74

              
	
                Initial
                  Engineering/Environmental Deposits

                ·     Immediate
                  Repairs

                ·     Environmental
                  Remediation

              	
                 

                ·     Immediate
                  Repairs

                N/A

                ·     
                  Environmental Remediation

                N/A)

              	
                 

                ·     Immediate
                  Repairs

                N/A

                ·     Environmental
                  Remediation

                N/A)

              
	
                Recurring
                  Monthly Replacement Reserve Deposit

              	
                N/A

              	
                $3,115.73

              
	
                Reletting
                  Reserve

              	
                N/A

              	
                $25,964.38

              
	
                Outstanding
                  TILC Escrow Account

              	
                $750,000.00

              	
                N/A

              
	
                Initial
                  Holdback Reserve Deposit

              	
                $3,000,000.00

              	
                N/A

              
	
                Initial
                  Debt Service Reserve Deposit

              	
                $400,000.00

              	
                N/A

              
	
                Initial
                  Yield Maintenance Reserve Deposit

              	
                $300,000.00

              	
                N/A

              

      

       

      
        
          
          

        

        
          -108-

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

       

      CASH
        FLOW
        STATEMENT

       

      

       

      Property:____________________________

      Location:____________________________

      Cash
        Flow
        Statement for Month of:____________ Year: 

       

      
        	 	
                Current

                Month

              	
                Year
                  to

                Date

              
	
                 

                REVENUE

                Net
                  Rental Revenue

                Other
                  Revenue

                Effective
                  Gross Income

              	
                 

                 

                 

                 

                ________

              	
                 

                 

                 

                 

                ________

              
	
                OPERATING
                  EXPENSES

                Common
                  Area Maintenance

                Payroll

                Administration

                Leasing
                  

                Service

                Clean
                  & Decorate

                Utilities

                Repairs
                  & Maintenance

                Taxes
                  

                Insurance

                Management
                  Fees

                Other

                Total
                  Operating Expenses

                Net
                  Operating Income

              	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                ________

                ________

              	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                ________

                ________

              
	
                 

                RECURRING
                  EXPENSES

                To
                  Include Expenses for: Carpet Replacement, Appliance Replacement,
                  HVAC/Water Heater Replacement; Miniblinds/Drapes/Ceiling
                  Fans:

              	
                 

                 

                 

                ________

              	
                 

                 

                 

                ________

              
	
                 

                NON-RECURRING
                  EXPENSES

                To
                  Include Capital Expenses for: Playground, Major Signage,
                  Lawns/Trees/Shrubs, Paving/Parking, Roof Replacement,
                  Carpentry/Siding/Balconies, Exterior Paint, Major Concrete/Sidewalks,
                  Foundations, Major Exterior, Boiler Replacement, Major HVAC Replacement,
                  Plumbing Replace, Electrical Replace, Other Major, Fire & Storm, Ins.
                  Loss Recovery:

                 

              	
                 

              	
                 

              
	
                Net
                  Cash Flow

              	
                ________

              	
                ________

              

      

      Certified
        By:_____________________________

      Name:_____________________________

      Title:_____________________________

      Management
        Company:_____________________________

       

      
        
          
            
            

          

          
            -109-

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        D

       

      Intentionally
        Deleted

      

      

       

       

      
        
          
          

        

        
          -110-

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

       

      Form
        of
        Direction Letter

       

      [Letterhead
        of Landlord]

       

      [Name
        and
        Address of tenant]

       

      Re:
        [Address of Premises]

       

      Dear
        tenant:

       

      You
        are
        hereby directed to make all future payments of rent and other sums due to
        Landlord under the Lease payable as follows:

       

      Payable
        To: [Borrower]
        and Wachovia Bank, National Association

       

      
        
          	If by federal wire transfer: 	 
	 	 
	Bank:	Wachovia
                  Bank, NA
	ABA #:   	053-000-219
	Acct Name:	
                  [Borrower]

                
	Acct #:	 
	Ref Loan #: 	
                  ___________________

                
	 	 
	If by US Mail: 	 
	 	 
	_________________ 	 
	 	 
	
                  PO
                    Box _____

                	 
	
                  Charlotte,
                    NC 28260-1443

                	 
	 	 
	If by Overnight Courier: 	 
	 	 
	Wachovia Bank, NA 	 
	1525 West WT Harris Blvd 	 
	Bldg 2C2 (Ref # ______) 	 
	Charlotte, NC 28262 	 
	Ref Loan
                  #:_____________________ 	 

        

      

       

      Please
        take particular care in making the check payable only to the above-mentioned
        names because only checks made payable to the referenced names will be credited
        against sums due by you to landlord. Until otherwise advised in writing by
        Landlord and
        the
        above-mentioned bank (or its successor), you should continue to make your
        payments for rent and other sums as directed by the terms of this
        letter.

       

      Thank
        you
        in advance for your cooperation with this change in payment
        procedures.

       

      By:                                                                                            
        

       

                                                                                

      
        
          
          

        

        
          -111-

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

      

      Holdback
        Reserve Release Calculation

      

      

      FORMULA

      

      
        	 	
                (i)

              	
                Lender
                  determines Pro-Forma Net Operating
                  Income;

              

      

      

      
        	 	
                (ii)

              	
                Pro-Forma
                  Net Operating Income is initially divided by 1.20 (the debt service
                  coverage ratio);

              

      

      

      
        	 	
                (iii)

              	
                The
                  result is divided by using a mortgage loan constant associated
                  with 6.09%
                  which is 7.2641881%. This calculation results in the loan amount
                  which can
                  be supported by the Pro-Forma Net Operating Income at the required
                  Debt
                  Service Coverage;

              

      

      

      
        	 	
                (iv)

              	
                $24,250,000.00
                  is subtracted from the result of (iii); and

              

      

      

      
        	 	
                (v)

              	
                The
                  result of (iv) determines the amount to be
                  released.

              

      

      

      EXAMPLE

      Assumptions:

      
        	
                Initial
                  Loan Amount

              	
                $27,250,000.00

              	 
	
                Initial
                  Supportable Loan Amount at Closing

              	
                $24,250,000.00

              	 
	
                Initial
                  Reserve Amount 

              	
                $3,000,000

              	 
	
                Loan
                  Constant

              	
                7.2641881%

              	 

      

      

      

      If:

      
        	
                Pro-Forma
                  Net Operating Income

              	
                $2,266,426.68

              	 
	
                Debt
                  Service Coverage Ratio

              	
                1.20

              	 
	
                Loan
                  Constant

              	
                7.2641881%

              	 

      

      

      Then:

      
        	
                Pro-Forma
                  Net Operating Income  ̧
                  Debt Service Coverage Ratio  ̧
                  Interest Rate =

              
	
                Supportable
                  Loan Amount

              
	
                OR

              
	
                $2,266,426.68 ̧
                  1.20  ̧
                  7.2641881% =

              
	
                $26,000,000

              

      

      

      

      
        	
                Supportable
                  Loan Amount

              	
                $26,000,000

              
	
                Less:
                  $24,250,000.00

              	
                1,750,000

              

      

      

      Therefore,
        the Holdback Escrow Reserve Escrow Account would be released as
        follows:

      
        	
                Original
                  Balance in Escrow

              	
                $3,000,000

              
	
                Less:
                  Amount to be released

              	
                $1,750,000

              
	
                Amount
                  of existing balance to be maintained in Holdback Escrow Reserve
                  Escrow

              	
                $1,250,000

              

      

      
        
          
          

        

        
          -112-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]